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Execution
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    UNITED
STATES NATURAL GAS FUND, LP

    

    THIRD
AMENDED AND RESTATED

    AGREEMENT
OF LIMITED PARTNERSHIP

    

    This Third Amended and Restated
Agreement of Limited Partnership (this “Agreement”) effective as of
December 31, 2010, is entered into by and among United States Commodity Funds
LLC, formerly Victoria Bay Asset Management, LLC, a Delaware limited liability
company, as General Partner, and Kellogg Capital Markets, formerly Kellogg
Capital Group, LLC, as a Limited Partner, together with any Persons who shall
hereafter be admitted as Partners in accordance with this
Agreement.

    

    WHEREAS, the General Partner, and the
Initial Limited Partner are parties to that certain second amended and restated
agreement of  limited partnership executed on December 4, 2007 (the
“LP Agreement”),
regarding the operation of the Partnership and their rights and obligations
thereunder and pursuant to which the Organizational Limited Partner withdrew
from the Partnership;

    

    WHEREAS, the General Partner and the
Initial Limited Partner now desire to amend and restate the LP Agreement
regarding the operation of the Partnership;

    

    NOW THEREFORE, in consideration of the
mutual promises and agreements herein made, the Partners, intending to be
legally bound, hereby agree to amend and restate the LP Agreement in its
entirety as follows:

    

    SECTION
I

    

    Definitions

    

    As used
in this Agreement, the following terms shall have the following
meanings:

    

    1.1.  “Accounting Period” shall
mean the following periods: the initial accounting period which shall commence
upon the commencement of operations of the Partnership. Each subsequent
Accounting Period shall commence immediately after the close of the preceding
Accounting Period. Each Accounting Period hereunder shall close on the earliest
of (i) the last Business Day of a month, (ii) the effective date of dissolution
of the Partnership, and (iii) such other day or days in addition thereto or in
substitution therefore as may from time to time be determined by the General
Partner in its discretion either in any particular case or
generally.

    

    1.2.  “Act” shall mean the Revised
Uniform Limited Partnership Act of the State of Delaware, as amended from time
to time.

    

    1.3.  “Additional Limited Partner”
shall mean a Person admitted to the Partnership as a Limited Partner pursuant to
this Agreement and who is shown as such on the books and records of the
Partnership.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    1.4.  “Affiliate” shall mean, when
used with reference to a specified Person, (i) any Person who directly or
indirectly through one or more intermediaries controls or is controlled by or is
under common control with the specified Person or (ii) any Person that is an
officer of, partner in, or trustee of, or serves in a similar capacity with
respect to, the specified Person or of which the specified Person is an officer,
partner or trustee, or with respect to which the specified Person serves in a
similar capacity.

    

    1.5.  “Assignee” shall mean a
Record Holder that has not been admitted to the Partnership as a Substituted
Limited Partner.

    

    1.6.  “Agreement” shall mean this
Third Amended and Restated Agreement of Limited Partnership as may
be  amended, modified, supplemented or restated from time to
time.

    

    1.7.  “Authorized Purchaser
Agreement” shall mean an agreement among the Partnership, the General
Partner and a Participant, as may be amended or supplemented from time to time
in accordance with its terms.

    

    1.8.  “Business Day” shall mean any
day other than a day when the New York Mercantile Exchange, the New York Stock
Exchange or the NYSE Arca, Inc. is closed for regular trading.

    

    1.9.  “Beneficial Owner” shall mean
the ultimate beneficial owner of Units held by a nominee which has furnished the
identity of the Beneficial Owner in accordance with Section 6031(c) of the Code
(or any other method acceptable to the General Partner in its sole discretion)
and with Section 9.2.2 of this Agreement.

    

    1.10.  “Capital Account” shall have
the meaning assigned to such term in Section 4.1.

    

    1.11.  “Capital Contribution” shall
mean the total amount of money or agreed-upon value of property contributed to
the Partnership by all the Partners or any class of Partners or any one Partner,
as the case may be (or the predecessor holders of the interests of such Partner
or Partners).

    

    1.12.  “Capital Transaction” shall
mean a sale of all or substantially all of the assets of the Partnership not in
the ordinary course of business.

    

    1.13.  “Certificate” shall mean a
certificate issued by the Partnership evidencing ownership of one or more
Units.

    

    1.14.  “Close of Business” shall
mean 5:00 PM New York time.

    

    1.15.  “Creation Basket” shall mean
100,000 Units, or such other number of Units as may be determined by the General
Partner from time to time, purchased by a Participant.

    

    1.16.  “Code” shall mean the
Internal Revenue Code of 1986, as amended.

    
      
         

      

      
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    1.17.  “Departing Partner” shall
mean a former General Partner, from and after the effective date of any
withdrawal or removal of such former General Partner.

    

    1.18.  “Depository” or “DTC” shall mean The
Depository Trust Company, New York, New York, or such other depository of Units
as may be selected by the General Partner as specified herein.

    

    1.19.  “Depository Agreement” shall
mean the Letter of Representations from the General Partner to the Depository,
dated as of April 17, 2007, as may be amended or supplemented from time to
time.

    

    1.20.  “Distributable Cash” shall
mean, with respect to any period, all cash revenues of the Partnership (not
including (i) Capital Contributions, (ii) funds received by the Partnership in
respect of indebtedness incurred by the Partnership, (iii) interest or other
income earned on temporary investments of Partnership funds pending utilization,
and (iv) proceeds from any Capital Transaction), less the sum of the following:
(x) all amounts expended by the Partnership pursuant to this Agreement in such
period and (y) such working capital or reserves or other amounts as the General
Partner reasonably deems to be necessary or appropriate for the proper operation
of the Partnership’s business or its winding up and liquidation. The General
Partner in its sole discretion may from time to time declare other funds of the
Partnership to be Distributable Cash.

    

    1.21.  “DTC Participants” shall have
the meaning assigned to such term in Section 9.2.2.

    

    1.22.  “General Partner” shall mean
the United States Commodity Funds LLC, formerly Victoria Bay Asset Management,
LLC, a Delaware limited liability company, or any Person who, at the time of
reference thereto, serves as a general partner of the Partnership.

    

    1.23.  “Global Certificates” shall
mean the global certificate or certificates issued to the Depository as provided
in the Depository Agreement, each of which shall be in substantially the form
attached hereto as Exhibit B.

    

    1.24.  “Indirect Participants” shall
have the meaning assigned to such term in Section 9.2.2.

    

    1.25.  “Initial Limited Partner”
shall have the meaning assigned to such term in Section 3.3.

    

    1.26.  “Initial Offering Period”
shall mean the period commencing with the initial effective date of the
Prospectus and terminating no later than the ninetieth (90th) day following such
date unless extended for up to an additional 90 days at the sole discretion of
the General Partner.

    

    1.27.  “Limited Partner” shall mean
any Person who is a limited partner (whether the Initial Limited Partner, a
Limited Partner admitted pursuant to this Agreement or an assignee who is
admitted as a Limited Partner) at the time of reference thereto, in such
Person’s capacity as a limited partner of the Partnership.

    
      
         

      

      
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    1.28.  “Management Fee” shall mean
the management fee paid to the General Partner pursuant to this
Agreement.

    

    1.29.  “Net Asset Value” or “NAV” shall mean the current
market value of the Partnership’s total assets, less any liabilities, as
reasonably determined by the General Partner or its designee.

    

    1.30.  “Opinion of Counsel” shall
mean a written opinion of counsel (who may be regular counsel to the Partnership
or the General Partner) acceptable to the General Partner.

    

    1.31.  “Organizational Limited
Partner” shall mean Wainwright Holdings, Inc., a Delaware corporation, in
its capacity as the organizational limited partner of the
Partnership.

    

    1.32.  “Outstanding” shall mean,
with respect to the Units or other Partnership Securities, as the case may be,
all Units or other Partnership Securities that are issued by the Partnership and
reflected as outstanding on the Partnership’s books and records as of the date
of determination.

    

    1.33.  “Participant” shall mean a
Person that is a DTC Participant and has entered into an Authorized Purchaser
Agreement which, at the relevant time, is in full force and effect.

    

    1.34.  “Partner” shall mean the
General Partner or any Limited Partner. “Partners” shall mean the
General Partner and all Limited Partners (unless otherwise
indicated).

    

    1.35.  “Partnership” shall mean the
limited partnership hereby formed, as such limited partnership may from time to
time be constituted.

    

    1.36.  “Partnership Securities”
shall mean any additional Units, options, rights, warrants or appreciation
rights relating thereto, or any other type of equity security that the
Partnership may lawfully issue, any unsecured or secured debt obligations of the
Partnership or debt obligations of the Partnership convertible into any class or
series of equity securities of the Partnership.

    

    1.37.  “Person” shall mean any
natural person, partnership, limited partnership, limited liability company,
trust, estate, corporation, association, custodian, nominee or any other
individual or entity in its own or any representative capacity.

    

    1.38.  “Profit or Loss” with respect
to any Accounting Period shall mean the excess (if any) of:

    

    (a) the
Net Asset Value as of the Valuation Time on the Valuation Date,
less

    

    (b) the
Net Asset Value as of the Valuation Time on the Valuation Date immediately
preceding the commencement of such Accounting Period,

    

    adjusted
as deemed appropriate by the General Partner to reflect any Capital
Contributions, redemptions, withdrawals, distributions, or other events
occurring or accounted for during such Accounting Period (including any
allocation of Profit or Loss to a redeeming partner pursuant to Section 4.3.2
with respect to such Accounting Period).

    
      
         

      

      
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    If the
amount determined pursuant to the preceding sentence is a positive number, such
amount shall be the “Profit” for the Accounting
Period and if such amount is a negative number, such amount shall be the “Loss” for the Accounting
Period.

    

    1.39.  “Prospectus” shall mean the
United States Natural Gas Fund, LP prospectus, dated  April 17, 2007,
as the same may have been amended or supplemented, used in connection with the
offer and sale of Units in the Partnership.

    

    1.40.  “Record Date” shall mean the
date established by the General Partner for determining (a) the identity of
Limited Partners (or Assignees if applicable) entitled to notice of, or to vote
at any meeting of Limited Partners or entitled to vote by ballot or give
approval of any Partnership action in writing without a meeting or entitled to
exercise rights in respect of any action of Limited Partners or (b) the identity
of Record Holders entitled to receive any notice, report or
distribution.

    

    1.41.  “Record Holder” shall mean
the Person in whose name such Unit is registered on the books of the Transfer
Agent as of the open of business on a particular Business Day.

    

    1.42.  “Redeemable Units” shall mean
any Units for which a redemption notice has been given.

    

    1.43.  “Redemption Basket” shall
mean 100,000 Units or such other number of Units as may be determined by the
General Partner from time to time, redeemed by a Participant.

    

    1.44.  “Revolving Credit Facility”
shall mean a revolving credit facility that the Partnership may enter into on
behalf of the Partnership with one or more commercial banks or other lenders for
liquidity or other purposes for the benefit of the Partnership.

    

    1.45.  “Substituted Limited Partner”
shall mean a Person who is admitted as a Limited Partner to the Partnership
pursuant to Section 11.2 in place of and with all the rights of a Limited
Partner and who is shown as a Limited Partner on the books and records of the
Partnership.

    

    1.46.  “Tax Certificate” shall mean
an Internal Revenue Service Form W-9 (or the substantial equivalent thereof) in
the case of a Limited Partner that is a U.S. person within the meaning of the
Code, or an Internal Revenue Service Form W-8BEN or other applicable form in the
case of a Limited Partner that is not a U.S. person.

    

    1.47.  “Transfer Agent” shall mean
Brown Brothers Harriman & Co. or such bank, trust company or other Person
(including, without limitation, the General Partner or one of its Affiliates) as
shall be appointed from time to time by the Partnership to act as registrar and
transfer agent for the Units or any applicable Partnership
Securities.

    

    1.48.  “Transfer Application” shall
mean an application and agreement for transfer of Units, which shall be
substantially in the form attached hereto as Exhibit D.

    
      
         

      

      
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    1.49.  “Unit” shall mean an interest
of a Limited Partner or an assignee of the Partnership representing such
fractional part of the interests of all Limited Partners and assignees as shall
be determined by the General Partner pursuant to this Agreement.

    

    1.50.  “Unit Register” shall have
the meaning assigned to such term in Section 9.2.1.

    

    1.51.  “Unitholders” shall mean the
General Partner and all holders of Units, where no distinction is required by
the context in which the term is used.

    

    1.52.  “Valuation Date” shall mean
the last Business Day of any Accounting Period.

    

    1.53.  “Valuation Time” shall mean
(i) Close of Business on a Valuation Date or (ii) such other time or day as the
General Partner in its discretion may determine from time to time either in any
particular case or generally.

    

    SECTION
II

    

    General
Provisions

    

    2.1.  This
Agreement shall become effective on the date set forth in the preamble of this
Agreement.  The rights and liabilities of the Partners shall be as set
forth in the Act, except as herein otherwise expressly provided.  The
Partnership shall continue without interruption as a limited partnership
pursuant to the provisions of the Act.

    

    2.2.  The
name of the Partnership shall be United States Natural Gas Fund, LP; however,
the business of the Partnership may be conducted, upon compliance with all
applicable laws, under any other name designated in writing by the General
Partner to the Limited Partners.

    

    2.3.  The
Partnership’s principal place of business shall be located at 1320 Harbor Bay
Parkway, Suite 145, Alameda, California 94502 or such other place as the General
Partner may designate from time to time. The registered agent for the
Partnership is Corporation Service Company and the registered office is located
at 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808, County of New
Castle. The Partnership may maintain such other offices at such other places as
the General Partner deems advisable.

    

    2.4.  The
investment objective of the Partnership is to have the changes in percentage
terms of the Units’ NAV to reflect the changes in percentage terms of the spot
price of natural gas delivered at the Henry Hub in Louisiana, as measured by
changes in the price of the futures contract on natural gas traded on the NYMEX
(the “Benchmark Futures Contract”) that is the near month contract to expire,
except when the near month contract is within two weeks of expiration, in which
case it will be measured by the futures contract that is the next month contract
to expire, less the Partnership’s expenses.  It is not the intent of
the Partnership to be operated in such a fashion such that its NAV will equal,
in dollar terms, the spot price of natural gas or any particular futures
contract based on natural gas. The Partnership will invest in futures contracts
for natural gas, other types of natural gas, heating oil, gasoline, oil and
other petroleum based fuels that are traded on the New York Mercantile Exchange,
ICE Futures or other U.S. and foreign exchanges (collectively, “Natural Gas Futures
Contracts”) and other natural gas interests such as cash-settled options
on Natural Gas Futures Contracts, forward contracts for natural gas, oil, and
over-the-counter transactions that are based on the price of natural gas, other
petroleum-based fuels, Natural Gas Futures Contracts and indices based on the
foregoing.

    
      
         

      

      
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    2.5.  The
term of the Partnership shall be from the date of its formation in perpetuity,
unless earlier terminated in accordance with the terms of this
Agreement.

    

    2.6.  The
General Partner shall execute, file and publish all such certificates, notices,
statements or other instruments required by law for the formation or operation
of a limited partnership in all jurisdictions where the Partnership may elect to
do business. The General Partner shall not be required to deliver or mail to the
Limited Partners a copy of the certificate of limited partnership of the
Partnership or any certificate of amendment thereto.

    

    2.7.  The
Partnership shall be empowered to do any and all acts and things necessary,
appropriate, proper, advisable, incidental to or convenient for the furtherance
and accomplishment of the purposes, business, protection and benefit of the
Partnership.

    

    2.8.  The
business and affairs of the Partnership shall be managed by the General Partner
in accordance with Section 7 hereof.  The General Partner has seven
directors, a majority of whom may also be executive officers of the General
Partner. The General Partner shall establish and maintain an audit committee of
its board of directors for the Partnership (the “Audit Committee”) in
compliance with, and granted the requisite authority and funding pursuant to,
any applicable (1) federal securities laws and regulations, including the
Sarbanes-Oxley Act of 2002, and (2) rules, policies and procedures of any
national securities exchange on which the securities issued by the Partnership
are listed and traded.

    

    SECTION
III

    

    Partners
and Capital Contributions

    

    3.1.  General
Partner.

    

    3.1.1  The
name of the General Partner is United States Commodity Funds LLC, which
maintains its principal business office at 1320 Harbor Bay Parkway, Suite 145,
Alameda, California 94502.

    
      
         

      

      
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    3.1.2  In
consideration of management and administrative services rendered by the General
Partner, the Partnership shall pay the Management Fee to the General Partner (or
such other person or entity designated by the General Partner) including the
payment of expenses in the ordinary course of business. Expenses in the
“ordinary course of business”  shall not include the payment of (i)
brokerage fees, (ii) licensing fees for the use of intellectual property used by
the Partnership, or (iii) registration or other fees paid to the Securities and
Exchange Commission (“SEC”), the Financial
Industry Regulatory Authority (“FINRA”), or any other
regulatory agency in connection with the offer and sale of the Units and
all legal, accounting, printing and other expenses associated therewith;
provided, however, that the fees and expenses incurred under (iii) in connection
with the initial public offering of the Units shall be paid by the General
Partner. The Partnership also pays (i) the fees and expenses, including
directors and officers’ liability insurance, of the independent directors, and
(ii) the fees and expenses associated with its tax accounting and reporting
requirements.  Fees and expenses, including the Management Fee, are
calculated on a daily basis and paid on a monthly basis (accrued at 1/365 of
applicable percentage of NAV on that day). The Management Fee shall be set forth
on Exhibit A attached hereto, as may be amended from time to time. The General
Partner may, in its sole discretion, waive all or part of the Management Fee.
The Partnership shall be responsible for all extraordinary expenses (i.e.,
expenses not in the ordinary course of business, including, without limitation,
the items listed above in this Section 3.1.2, the indemnification of any Person
against liabilities and obligations to the extent permitted by law and required
under this Agreement and the bringing and defending of actions at law or in
equity and otherwise engaging in the conduct of litigation and the incurring of
legal expense and the settlement of claims and litigation).

    

    3.1.3  In
connection with the formation of the Partnership under the Act, the General
Partner acquired a 2% interest in the profits and losses of the Partnership and
made an initial capital contribution to the Partnership in the amount of $20.00,
and the Organizational Limited Partner acquired a 98% interest in the profits
and losses of the Partnership and made an initial capital contribution to the
Partnership in the amount of $980.00. As of the date of the initial offering of
Units to the public, the interest of the Organizational Limited Partner and the
General Partner was redeemed, the initial capital contribution of the
Organizational Limited Partner and the General Partner was refunded, and the
Organizational Limited Partner thereupon withdrew and ceased to be a Limited
Partner. Ninety-eight percent of any interest or other profit that may have
resulted from the investment or other use of such initial capital contribution
was allocated and distributed to the Organizational Limited Partner, and the
balance thereof was allocated and distributed to the General
Partner.    The General Partner may but shall not be
required to make Capital Contributions to the Partnership on or after the date
hereof. If the General Partner does make a Capital Contribution to the
Partnership on or after the date hereof, it shall be issued Units based on the
same terms and conditions applicable to the purchase of a Creation Basket under
Section 16 hereof.

    

    3.1.4  The
General Partner may not, without written approval by all of the Limited Partners
or by other written instrument executed and delivered by all of the Limited
Partners subsequent to the date of this Agreement, take any action in
contravention of this Agreement, including, without limitation, (i) any act that
would make it impossible to carry on the ordinary business of the Partnership,
except as otherwise provided in this Agreement; (ii) possess Partnership
property, or assign any rights in specific Partnership property, for other than
a Partnership purpose; (iii) admit a Person as a Partner, except as otherwise
provided in this Agreement; (iv) amend this Agreement in any manner, except as
otherwise provided in this Agreement or under applicable law; or (v) transfer
its interest as general partner of the Partnership, except as otherwise provided
in this Agreement.

    
      
         

      

      
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    3.1.5  Except
as otherwise provided herein, the General Partner may not sell, exchange or
otherwise dispose of all or substantially all of the Partnership’s assets in a
single transaction or a series of related transactions (including by way of
merger, consolidation or other combination with any other Person) or approve on
behalf of the Partnership the sale, exchange or other disposition of all or
substantially all of the assets of the Partnership, taken as a whole, without
the approval of at least a majority of the Limited Partners; provided, however,
that this provision shall not preclude or limit the General Partner’s ability to
mortgage, pledge, hypothecate or grant a security interest in all or
substantially all of the Partnership’s assets and shall not apply to any forced
sale of any or all of the Partnership’s assets pursuant to the foreclosure of,
or other realization upon, any such encumbrance.

    

    3.1.6  Unless
approved by a majority of the Limited Partners, the General Partner shall not
take any action or refuse to take any reasonable action the effect of which, if
taken or not taken, as the case may be, would be to cause the Partnership, to
the extent it would materially and adversely affect the Limited Partners, to be
taxable as a corporation for federal income tax purposes.

    

    3.1.7  Notwithstanding
any other provision of this Agreement, the General Partner is not authorized to
institute or initiate on behalf of, or otherwise cause the Partnership
to:

    

    (a) make
a general assignment for the benefit of creditors;

    

    (b) file
a voluntary bankruptcy petition; or

    

    (c) file
a petition seeking for the Partnership a reorganization, arrangement,
composition, readjustment liquidation, dissolution or similar relief under any
law.

    

    3.2.  Issuance of
Units.  Units in the Partnership will only be issued in a
Creation Basket or whole number multiples thereof.

    

    3.3.  Initial Limited
Partner.  The name of the Initial Limited Partner is Kellogg
Capital Markets, formerly Kellogg Capital Group, LLC (“Initial Limited Partner”).
The business address and Capital Contribution of the Initial Limited Partner are
55 Broadway New York, NY 10006.

    

    3.4.  Capital
Contribution.  Except as otherwise provided in this Agreement,
no Partner shall have any right to demand or receive the return of its Capital
Contribution to the Partnership. No Partner shall be entitled to interest on any
Capital Contribution to the Partnership or on such Partner’s Capital
Account.

    

    SECTION
IV

    

    Capital
Accounts of Partners and Operation Thereof

    

    4.1.  Capital
Accounts.  There shall be established on the books and records
of the Partnership for each Partner (or Beneficial Owner in the case of Units
held by a nominee) a capital account (a “Capital Account”). It is
intended that each Partner’s Capital Account shall be maintained at all times in
a manner consistent with Section 704 of the Code and applicable Treasury
regulations thereunder, and that the provisions hereof relating to the Capital
Accounts shall be interpreted in a manner consistent therewith. For each
Accounting Period, the Capital Account of each Partner shall
be:

    
      
         

      

      
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    (i)
credited with the amount of any Capital Contributions made by such Partner
during such Accounting Period;

    

    (ii)
credited with any allocation of Profit made to such Partner for such Accounting
Period;

    

    (iii)
debited with any allocation of Loss made to such Partners for such Accounting
Period; and

    

    (iv)
debited with the amount of cash paid to such Partner as an amount withdrawn or
distributed to such Partner during such Accounting Period, or, in the case of
any payment of a withdrawal or distribution in kind, the fair value of the
property paid or distributed during such Accounting Period.

    

    4.1.2  For
any Accounting Period in which Units are issued or redeemed for cash or other
property, the General Partner shall, in accordance with Treasury Regulation
Section 1.704-1(b)(2)(iv)(f), adjust the Capital Accounts of all Partners and
the carrying value of each Partnership asset upward or downward to reflect any
unrealized gain or unrealized loss attributable to each such Partnership asset,
as if such unrealized gain or unrealized loss had been recognized on an actual
sale of the asset and had been allocated to the Partners at such time pursuant
to Section 4.2 of this Agreement in the same manner as any item of gain or loss
actually recognized during such period would have been allocated.

    

    4.1.3  To
the extent an adjustment to the adjusted tax basis of any Partnership asset
pursuant to Section 734(b) or 743(b) of the Code is required, pursuant to
Treasury Regulation Section 1.704-1(b)(2)(iv)(m), to be taken into account in
determining Capital Accounts, the amount of such adjustment to the Capital
Accounts shall be treated as an item of gain (if the adjustment increases the
basis of the asset) or loss (if the adjustment decreases such basis), and such
item of gain or loss shall be specially allocated to the Partners in a manner
consistent with the manner in which their Capital Accounts are required to be
adjusted pursuant to such Section of the Treasury regulations.

    

    4.2.  Allocation of Profit or
Loss.  Profit or Loss for an Accounting Period shall be
allocated among the Partners in proportion to the number of Units each Partner
holds as of the Close of Business on the last Business Day of such Accounting
Period. The General Partner may revise, alter or otherwise modify this method of
allocation to the extent it deems necessary to comply with the requirements of
Section 704 or Section 706 of the Code and Treasury regulations or
administrative rulings thereunder.

    

    4.3.  Allocations
for Tax Purposes

    

    4.3.1  Except
as otherwise provided in this Agreement, for each fiscal year of the
Partnership, items of income, deduction, gain, loss, and credit recognized by
the Partnership for federal income tax purposes shall be allocated among the
Partners in a manner that equitably reflects the amounts credited or debited to
each Partner’s Capital Account for each Accounting Period during such fiscal
year. Allocations under this Section 4.3 shall be made by the General Partner in
accordance with the principles of Sections 704(b) and 704(c) of the Code and in
conformity with applicable Treasury regulations promulgated thereunder
(including, without limitation, Treasury regulations Sections
1.704-1(b)(2)(iv)(f), 1.704-1(b)(4)(i), and 1.704-3(e)).

    
      
         

      

      
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    4.3.2  Notwithstanding
anything else contained in this Section 4, if any Partner has a deficit Capital
Account for any Accounting Period as a result of any adjustment of the type
described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(5) or
1.704-1(b)(2)(ii)(d)(6), then the Partnership’s income and gain shall be
specially allocated to such Partner in an amount and manner sufficient to
eliminate such deficit as quickly as possible. Any special allocation of items
of income or gain pursuant to this Section 4.3.2 shall be taken into account in
computing subsequent allocations pursuant to this Section 4 so that the
cumulative net amount of all items allocated to each Partner shall, to the
extent possible, be equal to the amount that would have been allocated to such
Partner if there had never been any allocation pursuant to the first sentence of
this Section 4.3.2.

    

    4.3.3  Allocations
that would otherwise be made to a Limited Partner under the provisions of this
Section 4 shall instead be made to the Beneficial Owner of Units held by a
nominee.

    

    4.4.  Compliance.  In
applying the provisions of this Section 4, the General Partner is authorized to
utilize such reasonable accounting conventions, valuation methods and
assumptions as the General Partner shall determine to be appropriate and in
compliance with the Code and applicable Treasury regulations. The General
Partner may amend the provisions of this Agreement to the extent it determines
to be necessary to comply with the Code and Treasury regulations.

    

    SECTION
V

    

    Records
and Accounting; Reports

    

    5.1.  Records and
Accounting.  The Partnership will keep proper books of record
and account of the Partnership at its office located in 1320 Harbor Bay Parkway,
Suite 145, Alameda, California 94502 or such office, including that of an
administrative agent, as it may subsequently designate upon notice to the
Limited Partners. These books and records are open to inspection by any person
who establishes to the Partnership’s satisfaction that such person is a Limited
Partner upon reasonable advance notice at all reasonable times during the usual
business hours of the Partnership.

    

    5.2.  Annual
Reports.  Within 90 days after the end of each fiscal year, the
General Partner shall cause to be delivered to each Person who was a Partner at
any time during the fiscal year, an annual report containing the
following:

    

    (i)
financial statements of the Partnership, including, without limitation, a
balance sheet as of the end of the Partnership’s fiscal year and statements of
income, Partners’ equity and changes in financial position, for such fiscal
year, which shall be prepared in accordance with generally accepted accounting
principles consistently applied and shall be audited by a firm of independent
certified public accountants registered with the Public Company Accounting
Oversight Board,

    
      
         

      

      
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    (ii) a
general description of the activities of the Partnership during the period
covered by the report, and

    

    (iii) a
report of any material transactions between the Partnership and the General
Partner or any of its Affiliates, including fees or compensation paid by the
Partnership and the services performed by the General Partner or any such
Affiliate for such fees or compensation.

    

    5.3.  Quarterly
Reports.  Within 45 days after the end of each quarter of each
fiscal year, the General Partner shall cause to be delivered to each Person who
was a Partner at any time during the quarter then ended, a quarterly report
containing a balance sheet and statement of income for the period covered by the
report, each of which may be unaudited but shall be certified by the General
Partner as fairly presenting the financial position and results of operations of
the Partnership during the period covered by the report. The report shall also
contain a description of any material event regarding the business of the
Partnership during the period covered by the report.

    

    5.4.  Monthly
Reports.  Within 30 days after the end of each month, the
General Partner shall cause to be delivered to each Person who was a Partner at
any time during the month then ended, a monthly report containing an account
statement, which will include a statement of income (or loss) and a statement of
changes in NAV, for the prescribed period. In addition, the account statement
will disclose any material business dealings between the Partnership, General
Partner, commodity trading advisor (if any), futures commission merchant, or the
principals thereof that previously have not been disclosed in the Partnership’s
Prospectus or any amendment thereto, other account statements or annual
reports.

    

    5.5.  Tax
Information.  The General Partner shall use its best efforts to
prepare and to transmit a U.S. federal income tax form K-1 for each Partner,
Assignee, or Beneficial Owner or a report setting forth in sufficient detail
such transactions effected by the Partnership during each fiscal year as shall
enable each Partner, Assignee, or Beneficial Owner to prepare its U.S. federal
income tax return, if any, within a reasonable period after the end of such
fiscal year.

    

    5.6.  Tax Returns.  The
General Partner shall cause income tax returns of the Partnership to be prepared
and timely filed with the appropriate authorities.

    
      
         

      

      
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    5.7.  Tax Matters
Partner.  The General Partner is hereby designated as the
Partnership’s “Tax Matters
Partner,” as defined under Section 6231(a)(7) of the Code. The General
Partner is specifically directed and authorized to take whatever steps the
General Partner, in its discretion, deems necessary or desirable to perfect such
designation, including filing any forms or documents with the U.S. Internal
Revenue Service and taking such other action as may from time to time be
required under U.S. Treasury regulations. Any Partner shall have the right to
participate in any administrative proceedings relating to the determination of
Partnership items at the Partnership level. Expenses of such administrative
proceedings undertaken by the Tax Matters Partner shall be expenses of the
Partnership. Each Partner who elects to participate in such proceedings shall be
responsible for any expenses incurred by such Partner in connection with such
participation. The cost of any resulting audits or adjustments of a Partner’s
tax return shall be borne solely by the affected Partner. In the event of any
audit, investigation, settlement or review, for which the General Partner is
carrying out the responsibilities of Tax Matters Partner, the General Partner
shall keep the Partners reasonably apprised of the status and course of such
audit, investigation, settlement or review and shall forward copies of all
written communications from or to any regulatory, investigative or judicial
authority with regard thereto.

    

    SECTION
VI

    

    Fiscal
Affairs

    

    6.1.  Fiscal Year.  The
fiscal year of the Partnership shall be the calendar year. The General Partner
may select an alternate fiscal year.

    

    6.2.  Partnership
Funds.  Pending application or distribution, the funds of the
Partnership shall be deposited in such bank account or accounts, or invested in
such interest-bearing or non-interest bearing investment, including, without
limitation, checking and savings accounts, certificates of deposit and time or
demand deposits in commercial banks, U.S. government securities and securities
guaranteed by U.S. government agencies as shall be designed by the General
Partner. Such funds shall not be commingled with funds of any other Person.
Withdrawals therefrom shall be made upon such signatures as the General Partner
may designate.

    

    6.3.  Accounting
Decisions.  All decisions as to accounting principles, except
as specifically provided to the contrary herein, shall be made by the General
Partner.

    

    6.4.  Tax Elections.  The
General Partner shall, from time to time, make such tax elections as it deems
necessary or desirable in its sole discretion to carry out the business of the
Partnership or the purposes of this Agreement. Notwithstanding the foregoing,
the General Partner shall make a timely election under Section 754 of the
Code.

    

    6.5.  Partnership
Interests.  Title to the Partnership assets shall be deemed to
be owned by the Partnership as an entity, and no Partner or Assignee,
individually or collectively, shall have any ownership interest in such
Partnership assets or any portion thereof. Title to any or all of the
Partnership assets may be held in the name of the Partnership, the General
Partner or one or more nominees, as the General Partner may determine. The
General Partner hereby declares and warrants that any Partnership assets for
which record title is held in the name of the General Partner shall be held by
the General Partner for the exclusive use and benefit of the Partnership in
accordance with the provisions of this Agreement; provided, however, that the
General Partner shall use its reasonable efforts to cause record title to such
assets (other than those assets in respect of which the General Partner
determines that the expense and difficulty of conveyancing makes transfer of
record title to the Partnership impracticable) to be vested in the Partnership
as soon as reasonably practicable; provided, that prior to the withdrawal or
removal of the General Partner or as soon thereafter as practicable, the General
Partner will use reasonable efforts to effect the transfer of record title to
the Partnership and, prior to any such transfer, will provide for the use of
such assets in a manner satisfactory to the Partnership. All Partnership assets
shall be recorded as the property of the Partnership in its books and records,
irrespective of the name in which record title to such Partnership assets are
held.

    
      
         

      

      
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    SECTION
VII

    

    Rights
and Duties of the General Partner

    

    7.1.  Management
Power.  The General Partner shall have exclusive management and
control of the business and affairs of the Partnership, and all decisions
regarding the management and affairs of the Partnership shall be made by the
General Partner. The General Partner shall have all the rights and powers of
general partner as provided in the Act and as otherwise provided by law. Except
as otherwise expressly provided in this Agreement, the General Partner is hereby
granted the right, power and authority to do on behalf of the Partnership all
things which, in its sole judgment, are necessary, proper or desirable to carry
out the aforementioned duties and responsibilities, including but not limited
to, the right, power and authority from time to time to do the
following:

    

    (a) the
making of any expenditures, the lending or borrowing of money, the assumption or
guarantee of, or other contracting for, indebtedness and other liabilities, the
issuance of evidences of indebtedness and the incurring of any other obligations
and the securing of same by mortgage, deed of trust or other lien or
encumbrance;

    

    (b) the
making of tax, regulatory and other filings, or rendering of periodic or other
reports to governmental or other agencies having jurisdiction over the business
or assets of the Partnership;

    

    (c) the
acquisition, disposition, mortgage, pledge, encumbrance, hypothecation or
exchange of any or all of the assets of the Partnership, or the merger or other
combination of the Partnership with or into another Person (the matters
described in this clause (c) being subject, however, to any prior approval that
may be required in accordance with this Agreement);

    

    (d) the
use of the assets of the Partnership (including, without limitation, cash on
hand) for any purpose consistent with the terms of this Agreement including,
without limitation, the financing of the conduct of the operations of the
Partnership, the lending of funds to other Persons, and the repayment of
obligations of the Partnership;

    

    (e) the
negotiation, execution and performance of any contracts, conveyances or other
instruments (including, without limitation, instruments that limit the liability
of the Partnership under contractual arrangements to all or particular assets of
the Partnership with the other party to the contract to have no recourse against
the General Partner or its assets other than its interest in the Partnership,
even if same results in the terms of the transaction being less favorable to the
Partnership than would otherwise be the case);

    

    (f) the
distribution of Distributable Cash;

    
      
         

      

      
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    (g) the
selection and dismissal of employees (including, without limitation, employees
having titles such as “president,” “vice president,”
“secretary” and “treasurer”), agents, outside
attorneys, accountants, consultants and contractors and the determination of
their compensation and other terms of employment or hiring;

    

    (h) the
maintenance of insurance for the benefit of the Partners and the Partnership
(including, without limitation, the assets and operations of the
Partnership);

    

    (i) the
formation of, or acquisition of an interest in, and the contribution of property
to, any further limited or general partnerships, joint ventures or other
relationships;

    

    (j) the
control of any matters affecting the rights and obligations of the Partnership,
including, without limitation, the bringing and defending of actions at law or
in equity and otherwise engaging in the conduct of litigation and the incurring
of legal expense and the settlement of claims and litigation;

    

    (k) the
indemnification of any Person against liabilities and contingencies to the
extent permitted by law;

    

    (l) the
entering into of listing agreements with the NYSE Arca, Inc. and any other
securities exchange and the delisting of some or all of the Units from, or
requesting that trading be suspended on, any such exchange; and

    

    (m) the
purchase, sale or other acquisition or disposition of Units.

    

    7.2.  Best Efforts.  The
General Partner will use its best efforts to cause the Partnership to be formed,
reformed, qualified or registered under assumed or fictitious name statutes or
similar laws in any state in which the Partnership owns property or transacts
business if such formation, reformation, qualification or registration is
necessary in order to protect the limited liability of the Limited Partners or
to permit the Partnership lawfully to own property or transact
business.

    

    7.3.  Right of Public to Rely on Authority
of a General Partner.  No person shall be required to determine
the General Partner’s authority to make any undertaking on behalf of the
Partnership.

    

    7.4.  Obligation
of the General Partner.  The General Partner shall:

    

    (a)
devote to the Partnership and apply to the accomplishment of the Partnership
purposes so much of its time and attention as is necessary or advisable to
manage properly the affairs of the Partnership;

    

    (b)
maintain the Capital Account for each Partner; and

    

    (c) cause
the Partnership to enter into and carry out the obligations of the Partnership
contained in the agreements with Affiliates of the General Partner as described
in the Prospectus and cause the Partnership not to take any action in violation
of such agreements.

    
      
         

      

      
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    7.5.  Good Faith.  The
General Partner has a responsibility to the Limited Partners to exercise good
faith and fairness in all dealings. In the event that a Limited Partner believes
that the General Partner has violated its fiduciary duty to the Limited
Partners, he may seek legal relief individually or on behalf of the Partnership
under applicable laws, including under the Act and under securities and
commodities laws, to recover damages from or require an accounting by the
General Partner. Limited Partners should be aware that performance by the
General Partner of its fiduciary duty is measured by the terms of this Agreement
as well as applicable law. Limited Partners may also have the right, subject to
applicable procedural and jurisdictional requirements, to bring class actions in
federal court to enforce their rights under the federal securities laws and the
rules and regulations promulgated thereunder by the SEC. Limited Partners who
have suffered losses in connection with the purchase or sale of the Units may be
able to recover such losses from the General Partner where the losses result
from a violation by the General Partner of the federal securities laws. State
securities laws may also provide certain remedies to limited partners. Limited
Partners are afforded certain rights to institute reparations proceedings under
the Commodity Exchange Act for violations of the Commodity Exchange Act or of
any rule, regulation or order of the Commodity Futures Trading Commission (“CFTC”)  by the
General Partner.

    

    7.6.  Indemnification

    

    7.6.1  Notwithstanding
any other provision of this Agreement, neither a General Partner nor any
employee or other agent of the Partnership nor any officer, director,
stockholder, partner, employee or agent of a General Partner (a “Protected Person”) shall be
liable to any Partner or the Partnership for any mistake of judgment or for any
action or inaction taken, nor for any losses due to any mistake of judgment or
to any action or inaction or to the negligence, dishonesty or bad faith of any
officer, director, stockholder, partner, employee or agent of the Partnership or
any officer, director, stockholder, partner, employee or agent of such General
Partner, provided that such officer, director, stockholder, partner, employee or
agent of the Partner or officer, director, stockholder, partner, employee or
agent of such General Partner was selected, engaged or retained by such General
Partner with reasonable care, except with respect to any matter as to which such
General Partner shall have been finally adjudicated in any action, suit or other
proceeding not to have acted in good faith in the reasonable belief that such
Protected Person’s action was in the best interests of the Partnership and
except that no Protected Person shall be relieved of any liability to which such
Protected Person would otherwise be subject by reason of willful misfeasance,
gross negligence or reckless disregard of the duties involved in the conduct of
the Protected Person’s office. A General Partner and its officers, directors,
employees or partners may consult with counsel and accountants (except for the
Partnership’s independent auditors) in respect of Partnership affairs and be
fully protected and justified in any action or inaction which is taken in
accordance with the advice or opinion of such counsel or accountants (except for
the Partnership’s independent auditors), provided that they shall have been
selected with reasonable care.

    

    Notwithstanding
any of the foregoing to the contrary, the provisions of this Section 7.6.1 and
of Section 7.6.2 hereof shall not be construed so as to relieve (or attempt to
relieve) a General Partner (or any officer, director, stockholder, partner,
employee or agent of such General Partner) of any liability to the extent (but
only to the extent) that such liability may not be waived, modified or limited
under applicable law, but shall be construed so as to effectuate the provisions
of this Section 7.6.1 and of Section 7.6.2 hereof to the fullest extent
permitted by law.

    
      
         

      

      
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    7.6.2  The
Partnership shall, to the fullest extent permitted by law, but only out of
Partnership assets, indemnify and hold harmless a General Partner and each
officer, director, stockholder, partner, employee or agent thereof (including
persons who serve at the Partnership’s request as directors, officers or
trustees of another organization in which the Partnership has an interest as a
Unitholder, creditor or otherwise) and their respective legal representatives
and successors (hereinafter referred to as a “Covered Person”) against all
liabilities and expenses, including but not limited to amounts paid in
satisfaction of judgments, in compromise or as fines and penalties, and counsel
fees reasonably incurred by any Covered Person in connection with the defense or
disposition of any action, suit or other proceedings, whether civil or criminal,
before any court or administrative or legislative body, in which such Covered
Person may be or may have been involved as a party or otherwise or with which
such Covered Person may be or may have been threatened, while in office or
thereafter, by reason of an alleged act or omission as a General Partner or
director or officer thereof, or by reason of its being or having been such a
General Partner, director or officer, except with respect to any matter as to
which such Covered Person shall have been finally adjudicated in any such
action, suit or other proceeding not to have acted in good faith in the
reasonable belief that such Covered Person’s action was in the best interest of
the Partnership, and except that no Covered Person shall be indemnified against
any liability to the Partnership or Limited Partners to which such Covered
Person would otherwise be subject by reason of willful misfeasance, bad faith,
gross negligence or reckless disregard of the duties involved in the conduct of
such Covered Person’s office. Expenses, including counsel fees so incurred by
any such Covered Person, may be paid from time to time by the Partnership in
advance of the final disposition of any such action, suit or proceeding on the
condition that the amounts so paid shall be repaid to the Partnership if it is
ultimately determined that the indemnification of such expenses is not
authorized hereunder.

    

    As to any
matter disposed of by a compromise payment by any such Covered Person, pursuant
to a consent decree or otherwise, no such indemnification either for said
payment or for any other expenses shall be provided unless such compromise shall
be approved as in the best interests of the Partnership, after notice that it
involved such indemnification by any disinterested person or persons to whom the
questions may be referred by the General Partner, provided that there has been
obtained an opinion in writing of independent legal counsel to the effect that
such Covered Person appears to have acted in good faith in the reasonable belief
that his or her action was in the best interests of the Partnership and that
such indemnification would not protect such persons against any liability to the
Partnership or its Limited Partners to which such person would otherwise by
subject by reason of willful misfeasance, bad faith, gross negligence or
reckless disregard of the duties involved in the conduct of office. Approval by
any disinterested person or persons shall not prevent the recovery from persons
of indemnification if such Covered Person is subsequently adjudicated by a court
of competent jurisdiction not to have acted in good faith in the reasonable
belief that such Covered Person’s action was in the best interests of the
Partnership or to have been liable to the Partnership or its Limited Partners by
reason of willful misfeasance, bad faith, gross negligence or reckless disregard
of the duties involved in the conduct of such Covered Person’s
office.

    
      
         

      

      
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    The right
of indemnification hereby provided shall not be exclusive of or affect any other
rights to which any such Covered Person may be entitled. As used in this Section
7.6.2, an “interested Covered
Person” is one against whom the action, suit or other proceeding on the
same or similar grounds is then or has been pending and a “disinterested person” is a
person against whom no actions, suits or other proceedings or another action,
suit or other proceeding on the same or similar grounds is then or has been
pending. Nothing contained in this Section 7.6.2 shall affect any rights to
indemnification to which personnel of a General Partner, other than directors
and officers, and other persons may be entitled by contract or otherwise under
law, nor the power of the Partnership to purchase and maintain liability
insurance on behalf of any such person.

    

    Nothing
in this Section 7.6.2 shall be construed to subject any Covered Person to any
liability to which he or she is not already liable under this Agreement or
applicable law.

    

    7.6.3  Each
Limited Partner agrees that it will not hold any Affiliate or any officer,
director, stockholder, partner, employee or agent of any Affiliate of the
General Partner liable for any actions of such General Partner or any
obligations arising under or in connection with this Agreement or the
transactions contemplated hereby.

    

    7.7.  Resolutions
of Conflicts of Interest; Standard of Care.

    

    7.7.1  Unless
otherwise expressly provided in this Agreement or any other agreement
contemplated hereby, whenever a conflict of interest exists or arises between
the General Partner on the one hand, and the Partnership or any Limited Partner,
on the other hand, any resolution or course of action by the General Partner in
respect of such conflict of interest shall be permitted and deemed approved by
all Partners and shall not constitute a breach of this Agreement or of any
agreement contemplated hereby or of a duty stated or implied by law or equity,
if the resolution or course of action is, or by operation of this Agreement is
deemed to be, fair and reasonable to the Partnership. If a dispute arises, it
will be resolved through negotiations with the General Partner or by a court
located in the State of Delaware. Any resolution of a dispute is deemed to be
fair and reasonable to the Partnership if the resolution is:

    

    (a)
approved by the Audit Committee, although no party is obligated to seek such
approval and the General Partner may adopt a resolution or course of action that
has not received such approval;

    

    (b) on
terms no less favorable to the Limited Partners than those generally being
provided to or available from unrelated third parties; or

    

    (c) fair
to the Limited Partners, taking into account the totality of the relationships
of the parties involved including other transactions that may be particularly
favorable or advantageous to the Limited Partners.

    
      
         

      

      
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    7.7.2  Whenever
this Agreement or any other agreement contemplated hereby provides that the
General Partner is permitted or required to make a decision (i) in its
discretion or under a grant of similar authority or latitude, the General
Partner shall be entitled to the extent permitted by applicable law, to consider
only such interest and factors as it desires and shall have no duty or
obligation to give any consideration to any interest of or factors affecting the
partnership or the Limited Partners, or (ii) in its good faith or under another
express standard, the General Partner shall act under such express standard and
except as required by applicable law, shall not be subject to any other
different standards imposed by this Agreement, any other agreement contemplated
hereby or applicable law.

    

    7.8.  Other
Matters Concerning the General Partner.

    

    7.8.1  The
General Partner (including the Audit Committee) may rely on and shall be
protected in acting or refraining from acting upon any certificate, document or
other instrument believed by it to be genuine and to have been signed or
presented by the proper party or parties.

    

    7.8.2  The
General Partner (including the Audit Committee) may consult with legal counsel,
accountants, appraisers, management consultants, investment bankers and other
consultants and advisors selected by it and any opinion or advice of any such
person as to matters which the General Partner (including the Audit Committee)
believes to be within such person’s professional or expert competence shall be
the basis for full and complete authorization of indemnification and provide
legal protection with respect to any action taken or suffered or omitted by the
General Partner (including the Audit Committee) hereunder in good faith and in
accordance with such opinion or advice.

    

    7.8.3  The
General Partner (including the Audit Committee) may exercise any of the powers
granted to it by this Agreement and perform any of the duties imposed upon it
hereunder either directly or by or through its agents, and the General Partner
(including the Audit Committee) shall not be responsible for any misconduct or
negligence on the part of any such agent appointed by the General Partner in
good faith.

    

    7.9.  Other Business
Ventures.  Any Partner, director, employee, Affiliate or other
person holding a legal or beneficial interest in any entity which is a Partner,
may engage in or possess an interest in other business ventures of every nature
and description, independently or with others, whether such ventures are
competitive with the Partnership or otherwise; and, neither the Partnership nor
the Partners shall have any right by virtue of this Agreement in or to such
independent ventures or to the income or profits derived there
from.

    

    7.10.  Contracts with the General Partner
or its Affiliates.  The General Partner may, on behalf of the
Partnership, enter into contracts with any Affiliate. The validity of any
transaction, agreement or payment involving the Partnership and any General
Partner or any Affiliate of a General Partner otherwise permitted by the terms
of this Agreement shall not be affected by reason of (i) the relationship
between the Partnership and the Affiliate of the General Partner, or (ii) the
approval of said transaction agreement or payment by officers or directors of
the General Partner.

    

    7.11.  Additional General
Partners.  Additional general partners may be admitted with the
consent of the General Partner.

    
      
         

      

      
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    SECTION
VIII

    

    Rights
and Obligations of Limited Partners

    

    8.1.  No Participation in
Management.  No Limited Partner (other than a General Partner
if it has acquired an interest of a Limited Partner) shall take part in the
management of the Partnership’s business, transact any business in the
Partnership’s name or have the power to sign documents for or otherwise bind the
Partnership.

    

    8.2.  Limitation of
Liability.  Except as provided in the Act, the debts,
obligations, and liabilities of the Partnership, whether arising in contract,
tort or otherwise, shall be solely the debts, obligations and liabilities of the
Partnership. A Limited Partner will not be liable for assessments in addition to
its initial capital investment in any capital securities representing limited
partnership interests. However, a Limited Partner may be required to repay to
the Partnership any amounts wrongfully returned or distributed to it under some
circumstances.

    

    8.3.  Indemnification and Terms of
Admission.  Each Limited Partner shall indemnify and hold
harmless the Partnership, the General Partner and every Limited Partner who was
or is a party or is threatened to be made a party to any threatened, pending or
completed action, suit or proceedings, whether civil, criminal, administrative
or investigative, by reason of or arising from any actual or alleged
misrepresentation or misstatement of facts or omission to state facts made (or
omitted to be made) by such Limited Partner in connection with any assignment,
transfer, encumbrance or other disposition of all or any part of an interest, or
the admission of a Limited Partner to the Partnership, against expenses for
which the Partnership or such other Person has not otherwise been reimbursed
(including attorneys’ fees, judgments, fines and amounts paid in settlement)
actually and reasonably incurred by him in connection with such action, suit or
proceeding.

    

    8.4.  Effective
Date.  The effective date of admission of a Limited Partner
shall be the date designated by the General Partner in writing to such assignee
or transferee.

    

    8.5.  Death or Incapacity of Limited
Partner.  The death or legal incapacity of a Limited Partner
shall not cause dissolution of the Partnership.

    

    8.6.  Rights
of Limited Partner Relating to the Partnership.

    

    (a) In
addition to other rights provided by this Agreement or by applicable law, and
except as otherwise limited under this Agreement, each Limited Partner shall
have the right, for a purpose reasonably related to such Limited Partner’s
interest as a Limited Partner in the Partnership, upon reasonable demand and at
such Limited Partner’s own expense:

    

    (i) to
obtain true and full information regarding the status of the business and
financial condition of the Partnership;

    

    (ii)
promptly after becoming available, to obtain a copy of the Partnership’s
federal, state and local tax returns for each year;

    
      
         

      

      
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    (iii) to
have furnished to it, upon notification to the General Partner, a current list
of the name and last known business, residence or mailing address of each
Partner;

    

    (iv) to
have furnished to it, upon notification to the General Partner, a copy of this
Agreement and the Certificate of Limited Partnership and all amendments
thereto;

    

    (v) to
obtain true and full information regarding the amount of cash contributed by and
a description and statement of the value of any other Capital Contribution by
each Partner and which each Partner has agreed to contribute in the future, and
the date on which each became a Partner; and

    

    (vi) to
obtain such other information regarding the affairs of the Partnership as is
just and reasonable.

    

    (b)
Notwithstanding any other provision of this Agreement, the General Partner may
keep confidential from the Limited Partners and Assignees for such period of
time as the General Partner deems reasonable, any information that the General
Partner reasonably believes to be in the nature of trade secrets or other
information, the disclosure of which the General Partner in good faith believes
is not in the best interests of the Partnership or could damage the Partnership
or that the Partnership is required by law or by agreements with third parties
to keep confidential (other than agreements with Affiliates the primary purpose
of which is to circumvent the obligations set forth in this Section
8.6).

    

    SECTION
IX

    

    Unit
Certificates

    

    9.1.  Unit
Certificates.  Certificates shall be executed on behalf of the
Partnership by any officer either of the General Partner or, if any, of the
Partnership.

    

    9.2.  Registration
Form, Registration of Transfer and Exchange.

    

    9.2.1  The
General Partner shall cause to be kept on behalf of the Partnership a register
(the “Unit Register”)
in which, subject to such reasonable regulations as it may prescribe, the
General Partner will provide for the registration and the transfer of Units. The
Transfer Agent has been appointed registrar and transfer agent for the purpose
of registering and transferring Units as herein provided. The Partnership shall
not recognize transfers of Certificates representing Units unless same are
effected in the manner described in this Section 9.2. Upon surrender for
registration of transfer of any Units evidenced by a Certificate, the General
Partner on behalf of the Partnership will execute, and the Transfer Agent will
countersign and deliver, in the name of the holder or the designated transferee
or transferees, as required pursuant to the holder’s instructions, one or more
new Certificates evidencing the same aggregate number of Units as was evidenced
by the Certificate so surrendered.

    

    9.2.2  Book-Entry-Only
System.

    
      
         

      

      
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    (a) Global Certificate
Only.  Unless otherwise authorized by the General Partner,
Certificates for Units will not be issued, other than the one or more Global
Certificates issued to the Depository. So long as the Depository Agreement is in
effect, Creation Baskets will be issued and redeemed and Units will be
transferable solely through the book-entry systems of the Depository and the DTC
Participants and their Indirect Participants as more fully described
below.

    

    (1) Global
Certificate.  The Partnership and the General Partner will
enter into the Depository Agreement pursuant to which the Depository will act as
securities depository for the Units. Units will be represented by the Global
Certificate (which may consist of one or more certificates as required by the
Depository), which will be registered, as the Depository shall direct, in the
name of Cede & Co., as nominee for the Depository and deposited with, or on
behalf of, the Depository. No other certificates evidencing Units will be
issued. The Global Certificate shall be in the form attached hereto as Exhibit B
and shall represent such Units as shall be specified therein, and may provide
that it shall represent the aggregate amount of outstanding Units from time to
time endorsed thereon and that the aggregate amount of outstanding Units
represented thereby may from time to time be increased or decreased to reflect
creations or redemptions of Baskets (as defined in Section 16.1). Any
endorsement of a Global Certificate to reflect the amount, or any increase or
decrease in the amount, of outstanding Units represented thereby shall be made
in such manner and upon instructions given by the General Partner on behalf of
the Partnership as specified in the Depository Agreement.

    

    (2) Legend.  Any Global
Certificate issued to the Depository or its nominee shall bear a legend
substantially to the following effect:

    

    “UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE FUND OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUIRED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
HAS AN INTEREST HEREIN.”

    
      
         

      

      
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    (3) The
Depository.  The Depository has advised the Partnership and the
General Partner as follows: the Depository is a limited-purpose trust company
organized under the laws of the State of New York, a member of the U.S. Federal
Reserve System, a “clearing
corporation” within the meaning of the New York Uniform Commercial Code,
and a “clearing agency”
registered pursuant to the provisions of Section 17A of the Securities Exchange
Act of 1934, as amended. The Depository was created to hold securities of DTC
Participants and to facilitate the clearance and settlement of securities
transactions among the DTC Participants in such securities through electronic
book-entry changes in accounts of the DTC Participants, thereby eliminating the
need for physical movement of securities certificates. “DTC Participants” include
securities brokers and dealers, banks, trust companies, clearing corporations,
and certain other organizations, some of whom (and/or their representatives) own
the Depository. Access to the Depository’s system is also available to others
such as banks, brokers, dealers and trust companies that clear through or
maintain a custodial relationship with a DTC Participant, either directly or
indirectly (“Indirect
Participants”). The Depository may determine to discontinue providing its
service with respect to Creation Baskets and Units by giving notice to the
General Partner pursuant to and in conformity with the provisions of the
Depository Agreement and discharging its responsibilities with respect thereto
under applicable law. Under such circumstances, the General Partner shall take
action either to find a replacement for the Depository to perform its functions
at a comparable cost and on terms acceptable to the General Partner or, if such
a replacement is unavailable, to terminate the Partnership.

    

    (4) Beneficial
Owners.  As provided in the Depository Agreement, upon the
settlement date of any creation, transfer or redemption of Units, the Depository
will credit or debit, on its book-entry registration and transfer system, the
number of Units so created, transferred or redeemed to the accounts of the
appropriate DTC Participants. The accounts to be credited and charged shall be
designated by the General Partner on behalf of the Partnership and each
Participant, in the case of a creation or redemption of Baskets. Ownership of
beneficial interest in Units will be limited to DTC Participants, Indirect
Participants and persons holding interests through DTC Participants and Indirect
Participants. Beneficial Owners will be shown on, and the transfer of beneficial
ownership by Beneficial Owners will be effected only through, in the case of DTC
Participants, records maintained by the Depository and, in the case of Indirect
Participants and Beneficial Owners holding through a DTC Participant or an
Indirect Participant, through those records or the records of the relevant DTC
Participants. Beneficial Owners are expected to receive, from or through the
broker or bank that maintains the account through which the Beneficial Owner has
purchased Units, a written confirmation relating to their purchase of
Units.

    
      
         

      

      
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    (5) Reliance on
Procedures.  Except for those who have provided Transfer
Applications to the General Partner, so long as Cede & Co., as nominee of
the Depository, is the registered owner of Units, references herein to the
registered or record owners of Units shall mean Cede & Co. and shall not
mean the Beneficial Owners of Units. Beneficial Owners of Units will not be
entitled to have Units registered in their names, will not receive or be
entitled to receive physical delivery of certificates in definitive form and
will not be considered the record or registered holder of Units under this
Agreement. Accordingly, to exercise any rights of a holder of Units under the
Agreement, a Beneficial Owner must rely on the procedures of the Depository and,
if such Beneficial Owner is not a DTC Participant, on the procedures of each DTC
Participant or Indirect Participant through which such Beneficial Owner holds
its interests. The Partnership and the General Partner understand that under
existing industry practice, if the Partnership requests any action of a
Beneficial Owner, or a Beneficial Owner desires to take any action that the
Depository, as the record owner of all outstanding Units, is entitled to take,
the Depository will notify the DTC Participants regarding such request, such DTC
Participants will in turn notify each Indirect Participant holding Units through
it, with each successive Indirect Participant continuing to notify each person
holding Units through it until the request has reached the Beneficial Owner, and
in the case of a request or authorization to act that is being sought or given
by a Beneficial Owner, such request or authorization is given by the Beneficial
Owner and relayed back to the Partnership through each Indirect Participant and
DTC Participant through which the Beneficial Owner’s interest in the Units is
held.

    

    (6) Communication between the
Partnership and the Beneficial Owners.  As described above, the
Partnership will recognize the Depository or its nominee as the owner of all
Units for all purposes except as expressly set forth in this Agreement.
Conveyance of all notices, statements and other communications to Beneficial
Owners will be effected in accordance with this paragraph.  Pursuant
to the Depository Agreement, the Depository is required to make available to the
Partnership, upon request and for a fee to be charged to the Partnership, a
listing of the Unit holdings of each DTC Participant. The Partnership shall
inquire of each such DTC Participant as to the number of Beneficial Owners
holding Units, directly or indirectly, through such DTC Participant. The
Partnership shall provide each such DTC Participant with sufficient copies of
such notice, statement or other communication, in such form, number and at such
place as such DTC Participant may reasonably request, in order that such notice,
statement or communication may be transmitted by such DTC Participant, directly
or indirectly, to such Beneficial Owners. In addition, the Partnership shall pay
to each such DTC Participant an amount as reimbursement for the expenses
attendant to such transmittal, all subject to applicable statutory and
regulatory requirements.

    

    (7) Distributions.  Distributions
on Units pursuant to this Agreement shall be made to the Depository or its
nominee, Cede & Co., as the registered owner of all Units. The Partnership
and the General Partner expect that the Depository or its nominee, upon receipt
of any payment of distributions in respect of Units, shall credit immediately
DTC Participants’ accounts with payments in amounts proportionate to their
respective beneficial interests in Units as shown on the records of the
Depository or its nominee. The Partnership and the General Partner also expect
that payments by DTC Participants to Indirect Participants and Beneficial Owners
held through such DTC Participants and Indirect Participants will be governed by
standing instructions and customary practices, as is now the case with
securities held for the accounts of customers in bearer form or registered in a
“street name,” and will
be the responsibility of such DTC Participants and Indirect Participants.
Neither the Partnership nor the General Partner will have any responsibility or
liability for any aspects of the records relating to or notices to Beneficial
Owners, or payments made on account of beneficial ownership interests in Units,
or for maintaining, supervising or reviewing any records relating to such
beneficial ownership interests or for any other aspect of the relationship
between the Depository and the DTC Participants or the relationship between such
DTC Participants and the Indirect Participants and Beneficial Owners owning
through such DTC Participants or Indirect Participants or between or among the
Depository, any Beneficial Owner and any person by or through which such
Beneficial Owner is considered to own Units.

    
      
         

      

      
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    (8) Limitation of
Liability.  The Global Certificate to be issued hereunder is
executed and delivered solely on behalf of the Partnership by the General
Partner in its capacity as such and in the exercise of the powers and authority
conferred and vested in it by this Agreement. The representations, undertakings
and agreements made on the part of the Partnership in the Global Certificate are
made and intended not as personal representations, undertakings and agreements
by the General Partner, but are made and intended for the purpose of binding
only the Partnership. Nothing in the Global Certificate shall be construed as
creating any liability on the General Partner, individually or personally, to
fulfill any representation, undertaking or agreement other than as provided in
this Agreement.

    

    (9) Successor
Depository.  If a successor to the Depository shall be employed
as Depository hereunder, the Partnership and the General Partner shall establish
procedures acceptable to such successor with respect to the matters addressed in
this Section 9.2.2.

    

    (10)
Transfer of
Units.  Beneficial Owners that are not DTC Participants may
transfer Units by instructing the DTC Participant or Indirect Participant
holding the Units for such Beneficial Owner in accordance with standard
securities industry practice. Beneficial Owners that are DTC Participants may
transfer Units by instructing the Depository in accordance with the rules of the
Depository and standard securities industry practice.

    

    9.2.3  Except
as otherwise provided in this Agreement, the Partnership shall not recognize any
transfer of Units until the Certificates (if applicable) and a Transfer
Application have been provided to the General Partner evidencing such Units are
surrendered for registration of transfer.  Such Certificates must be
accompanied by a Transfer Application duly executed by the transferee (or the
transferee’s attorney-in-fact duly authorized in writing). No charge shall be
imposed by the Partnership for such transfer, provided, that, as a condition to
the issuance of any new Certificate under this Section 9.2, the General Partner
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed with respect thereto.

    

    9.3.  Mutilated,
Destroyed, Lost or Stolen Certificates.

    

    9.3.1  If
any mutilated Certificate is surrendered to the Transfer Agent, the General
Partner on behalf of the Partnership, shall execute, and upon its request, the
Transfer Agent shall countersign and deliver in exchange therefore, a new
Certificate evidencing the same number of Units as the Certificate so
surrendered.

    
      
         

      

      
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    9.3.2  The
General Partner, on behalf of the Partnership, shall execute, and upon its
request, the Transfer Agent shall countersign and deliver a new Certificate in
place of any Certificate previously issued if the Record Holder of the
Certificate:

    

    (a) makes
proof by affidavit, in form and substance satisfactory to the General Partner,
that a previously issued Certificate has been lost, destroyed or
stolen;

    

    (b)
requests the issuance of a new Certificate before the Partnership has received
notice that the Certificate has been acquired by a purchaser for value in good
faith and without notice of an adverse claim;

    

    (c) if
requested by the General Partner, delivers to the Partnership a bond or such
other form of security or indemnity as may be required by the General Partner,
in form and substance satisfactory to the General Partner, with surety or
sureties and with fixed or open penalty as the General Partner may direct, in
its sole discretion, to indemnify the Partnership, the General Partner and the
Transfer Agent against any claim that may be made on account of the alleged
loss, destruction or theft of the Certificate; and

    

    (d)
satisfies any other reasonable requirements imposed by the General
Partner.

    

    If a
Limited Partner or Assignee fails to notify the Partnership within a reasonable
time after it has notice of the loss, destruction or theft of a Certificate, and
a transfer of the Units represented by the Certificate is registered before the
Partnership, the General Partner or the Transfer Agent receives such
notification, the Limited Partner or Assignee shall be precluded from making any
claim against the Partnership, the General Partner or the Transfer Agent for
such transfer or for a new Certificate.

    

    9.3.3  As
a condition to the issuance of any new Certificate under this Section 9.3, the
General Partner may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any other
expenses (including, without limitation, the fees and expenses of the Transfer
Agent) connected therewith.

    

    9.4.  Record Holder.  The
Partnership and DTC shall be entitled to recognize the Record Holder as the
Limited Partner or Assignee with respect to any Units and, accordingly, shall
not be bound to recognize any equitable or other claim to or interest in such
Units on the part of any other Person, whether or not the Partnership shall have
actual or other notice thereof, except as otherwise provided by law or any
applicable rule, regulation, guideline or requirement of any national securities
exchange on which the Units are listed for trading. Without limiting the
foregoing, when a Person (such as a broker, dealer, bank trust company or
clearing corporation or an agent of any of the foregoing) is acting as nominee,
agent or in some other representative capacity for another Person in acquiring
and/or holding Units, as between the Partnership on the one hand and such other
Persons on the other hand such representative Person (a) shall be the Limited
Partner or Assignee (as the case may be) of record and beneficially, (b) must
execute and deliver a Transfer Application and (c) shall be bound by this
Agreement and shall have the rights and obligations of a Limited Partner or
Assignee (as the case may be) hereunder and as provided for
herein.

    
      
         

      

      
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    9.5.  Units and Partnership
Securities.  The General Partner is hereby authorized to cause
the Partnership to issue Units and Partnership Securities or declare any
distribution, subdivision or combination of Units or Partnership Securities, in
each case for any Partnership purpose, at any time or from time to time, to the
Partners, Unitholders or to other Persons for such consideration and on such
terms and conditions as shall be established by the General Partner in its sole
discretion, all without the approval of any Limited Partners or Unitholders. The
General Partner shall have sole discretion, subject to the requirements of the
Act, in determining the consideration and terms and conditions with respect to
any future issuance of Units or Partnership Securities.

    

    9.5.1  The
General Partner shall do all things necessary to comply with the Act and is
authorized and directed to do all things it deems to be necessary or advisable
in connection with any future issuance of Partnership Securities, including,
without limitation, compliance with any statute, rule, regulation or guideline
of any federal, state or other governmental agency or any national securities
exchange on which the Units or other Partnership Securities are listed for
trading.

    

    9.5.2  Distributions,
Subdivisions and Combinations of Units.

    

    (a) The
Partnership may make a pro rata distribution of Units or other Partnership
Securities to all Unitholders or may effect a subdivision or combination of the
Units or other Partnership Securities so long as such event will not affect any
Unitholder’s percentage interest in the Partnership except to the extent that a
cash distribution, e.g., in lieu of fractional Units, or rounding of Units
alters such percentage interest of the Unitholders following such event in
accordance with Section 9.5.2(g) below.  Any amounts calculated on a
per Unit basis or stated as a number of Units will be proportionately adjusted
retroactive to the beginning of the Partnership.

    

    (b) Any
distributions on Units shall be made as set forth in Section
9.2.2(a)(7).

    

    (c) Any
subdivision or combination of the Units pursuant to this Agreement shall be made
to the Depository or its nominee, Cede & Co., as the registered owner of all
Units. The Partnership and the General Partner expect that the Depository or its
nominee, upon receipt of any instructions to effect a subdivision or combination
in respect of Units, shall credit immediately DTC Participants’ accounts with
the relevant Units or payment as a result of such subdivision or combination
proportionate to their respective beneficial interests in Units as shown on the
records of the Depository or its nominee. The Partnership and the General
Partner also expect that payments by DTC Participants to Indirect Participants
and Beneficial Owners held through such DTC Participants and Indirect
Participants will be governed by standing instructions and customary practices,
as is now the case with securities held for the accounts of customers in bearer
form or registered in a “street name,” and will be
the responsibility of such DTC Participants and Indirect
Participants.  Neither the Partnership nor the General Partner will
have any responsibility or liability for any aspects of the records relating to
or notices to Beneficial Owners with respect to such subdivision or combination
of Units, or payments made on account of beneficial ownership interests in
Units, or for maintaining, supervising or reviewing any records relating to such
beneficial ownership interests or for any other aspect of the relationship
between the Depository and the DTC Participants or the relationship between such
DTC Participants and the Indirect Participants and Beneficial Owners owning
through such DTC Participants or Indirect Participants or between or among the
Depository, any Beneficial Owner and any person by or through which such
Beneficial Owner is considered to own Units.

    
      
         

      

      
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    (d) Any
distributions on or subdivision or combination of Units or other Partnership
Securities shall be made in accordance with any notice of such distribution,
subdivision or combination.

    

    (e)
Whenever such a distribution, subdivision or combination of Units or other
Partnership Securities is declared, the General Partner shall select a date as
of which the distribution, subdivision or combination shall be effective (the
“Transaction Date”) and
shall provide notice thereof at least 20 days prior to the Transaction
Date.

    

    (f)
Promptly following any such distribution, subdivision or combination, the new
number of Units or other Partnership Securities as of the applicable Transaction
Date shall be reflected by DTC, or the General Partner may adopt such other
procedures as it may deem appropriate to reflect such changes.

    

    (g) The
Partnership shall not issue fractional Units upon any distribution, subdivision
or combination of Units.  If a distribution, subdivision or
combination of Units would result in the creation of fractional Units but for
the provisions of this Section 9.5.2(g), each such fractional Unit shall be
redeemed for cash or as otherwise provided in any notice of such distribution,
subdivision or combination.

    

    SECTION
X

    

    Transfer
of Interests

    

    10.1.  Transfer.

    

    10.1.1  The
term “transfer,” when
used in this Section 10 with respect to an interest, shall be deemed to refer to
an appropriate transaction by which the General Partner assigns its interest as
General Partner to another Person or by which the holder of a Unit assigns such
Unit to another Person who is or becomes an Assignee and includes a sale,
assignment, gift, pledge, encumbrance, hypothecation, mortgage, exchange or any
other disposition by law or otherwise.

    

    10.1.2  No
interest shall be transferred in whole or in part, except in accordance with the
terms and conditions set forth in this Section 10. Any transfer or purported
transfer of an interest not made in accordance with this Section 10 shall be
null and void.

    

    10.2.  Transfer
of General Partner’s Interest.

    
      
         

      

      
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    10.2.1  Except
as set forth in this Section 10.2.1, the General Partner may transfer all, but
not less than all, of its interest as the general partner to a single transferee
if, but only if, (i) at least a majority of the Limited Partners approve of such
transfer and of the admission of such transferee as general partner, (ii) the
transferee agrees to assume the rights and duties of the General Partner and be
bound by the provisions of this Agreement and other applicable agreements, and
(iii) the Partnership receives an Opinion of Counsel that such transfer would
not result in the loss of limited liability of any Limited Partner or of the
Partnership or cause the Partnership to be taxable as a corporation or otherwise
taxed as an entity for federal income tax purposes. The foregoing
notwithstanding, the General Partner is expressly permitted to pledge its
interest as General Partner to secure the obligations of the Partnership under a
Revolving Credit Facility, as the same may be amended, supplemented, replaced,
refinanced or restated from time to time, or any successor or subsequent loan
agreement.

    

    10.2.2  Neither
Section 10.2.1 nor any other provision of this Agreement shall be construed to
prevent (and all Partners do hereby consent to) (i) the transfer by the General
Partner of all of its interest as a general partner to an Affiliate or (ii) the
transfer by the General Partner of all its interest as a general partner upon
its merger or consolidation with or other combination into any other Person or
the transfer by it of all or substantially all of its assets to another Person
if, in the case of a transfer described in either clause (i) or (ii) of this
sentence, the rights and duties of the General Partner with respect to the
interest so transferred are assumed by the transferee and the transferee agrees
to be bound by the provisions of this Agreement; provided, that in either such
case, such transferee furnishes to the Partnership an Opinion of Counsel that
such merger, consolidation, combination, transfer or assumption will not result
in a loss of limited liability of any Limited Partner or of the Partnership or
cause the Partnership to be taxable as a corporation or otherwise taxed as an
entity for federal income tax purpose. In the case of a transfer pursuant to
this Section 10.2.2, the transferee or successor (as the case may be) shall be
admitted to the Partnership as the General Partner immediately prior to the
transfer of the interest, and the business of the Partnership shall continue
without dissolution.

    

    10.3.  Transfer
of Units.

    

    10.3.1  Units
may be transferred only in the manner described in Section 9.2. The transfer of
any Units and the admission of any new Partner shall not constitute an amendment
to this Agreement.

    

    10.3.2  Until
admitted as a Substituted Limited Partner pursuant to Section 11.2, the Record
Holder of a Unit shall be an Assignee in respect of such Unit. Limited Partners
may include custodians, nominees or any other individual or entity in its own or
any representative capacity.

    

    10.3.3  Each
distribution in respect of Units shall be paid by the Partnership, directly or
through the Transfer Agent or through any other Person or agent, only to the
Record Holders thereof as of the Record Date set for the distribution. Such
payment shall constitute full payment and satisfaction of the Partnership’s
liability in respect of such payment, regardless of any claim of any Person who
may have an interest in such payment by reason of an assignment or
otherwise.

    
      
         

      

      
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    10.3.4  A
transferee who has completed and delivered a Transfer Application provided by
the seller of the Units (or if purchased on an exchange directly from the
Partnership), shall be deemed to have (i) requested admission as a Substituted
Limited Partner, (ii) agreed to comply with and be bound by and to have executed
this Agreement, (iii) represented and warranted that such transferee has the
capacity and authority to enter into this Agreement, (iv) made the powers of
attorney set forth in this Agreement, and (v) given the consents and made the
waivers contained in this Agreement.

    

    10.4.  Restrictions on
Transfers.  Notwithstanding the other provisions of this
Section 10, no transfer of any Unit or interest therein of any Limited Partner
or Assignee shall be made if such transfer would (a) violate the then applicable
federal or state securities laws or rules and regulations of the SEC, any state
securities commission, the CFTC, or any other governmental authorities with
jurisdiction over such transfer, (b) cause the Partnership to be taxable as a
corporation or (c) affect the Partnership’s existence or qualification as a
limited partnership under the Act. The General Partner may request each Record
Holder to furnish certain information, including that holder’s nationality,
citizenship or other related status. A transferee who is not a U.S. resident may
not be eligible to become a Record Holder or a Limited Partner if such ownership
would subject the Partnership to the risk of cancellation or forfeiture of any
of its assets under any federal, state or local law or regulation. If the Record
Holder fails to furnish the information or if the General Partner determines, on
the basis of the information furnished by the holder in response to the request,
that such holder is not qualified to become a Limited Partner, the General
Partner may be substituted as a holder for the Record Holder, who will then be
treated as a non-citizen assignee, and the Partnership will have the right to
redeem those securities held by the Record Holder.

    

    10.5.  Tax
Certificates.

    

    10.5.1  All
Limited Partners or Assignees (or, if the Limited Partner or Assignee is a
nominee holding for the account of a Beneficial Owner, the Beneficial Owner) are
required to provide the Partnership with a properly completed Tax
Certificate.

    

    10.5.2  If
a Limited Partner or Assignee (or, if the Limited Partner or Assignee is a
nominee holding for the account of a Beneficial Owner, the Beneficial Owner)
fails to provide the Partnership with a properly completed Tax Certificate, the
General Partner may request at any time and from time to time, that such Limited
Partner or Assignee (or Beneficial Owner) shall, within 15 days after request
(whether oral or written) therefore by the General Partner, furnish to the
Partnership, a properly completed Tax Certificate. If a Limited Partner or
Assignee fails to furnish to the General Partner within the aforementioned
15-day period such Tax Certificate, the Units owned by such Limited Partner or
Assignee (or in the case of a Limited Partner or Assignee that holds Units on
behalf of a Beneficial Owner, the Units held on behalf of the Beneficial Owner)
shall be subject to redemption in accordance with the provisions of Section
10.6.

    

    10.6.  Redemption
of Units for Failure to Provide Tax Certificate.

    
      
         

      

      
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    10.6.1  If
at any time a Limited Partner or Assignee fails to furnish a properly completed
Tax Certificate within the 15-day period specified in Section 10.5.2, the
Partnership may redeem the Units of such Limited Partner or Assignee as
follows:

    

    (a) The
General Partner shall not later than the tenth (10th) Business Day before the
date fixed for redemption, give notice of redemption to the Limited Partner or
Assignee, at its last address designated on the records of the Partnership or
the Transfer Agent, by registered or certified mail, postage prepaid. The notice
shall be deemed to have been given when so mailed (the “Notice Date”). The notice
shall specify the Redeemable Units, the date fixed for redemption, the place of
payment, and that payment of the redemption price will be made upon surrender of
the certification evidencing the Redeemable Units.

    

    (b) The
aggregate redemption price for Redeemable Units shall be an amount equal to the
market price as of the Close of Business on the Business Day immediately prior
to the date fixed for redemption of Units to be so redeemed multiplied by the
number of Units included among the Redeemable Units. The redemption price shall
be paid in the sole discretion of the General Partner, in cash or by delivery of
a promissory note of the Partnership in the principal amount of the redemption
price, bearing interest at the Prime Rate (as established by the Federal Reserve
Board) and payable in three equal annual installments of principal together with
accrued interest commencing one year after the redemption date.

    

    (c) Upon
surrender by or on behalf of the Limited Partner or Assignee, at the place
specified in the notice of redemption, of the certification evidencing the
Redeemable Units, duly endorsed in blank or accompanied by an assignment duly
executed in blank, the Limited Partner or Assignee or its duly authorized
representative shall be entitled to receive the payment therefore.

    

    (d) In
the event the Partnership is required to pay withholding tax or otherwise
withhold any amount on behalf of, or with respect to, a Limited Partner or
Assignee (or Beneficial Owner) who has failed to provide a properly completed
Tax Certificate, such amounts paid or withheld by the Partnership shall be
deemed to have been paid to such Limited Partner or Assignee (or Beneficial
Owner) as part of the redemption price for the Redeemable Units and the
Partnership shall reduce the amount of the payment made to such Limited Partner
or Assignee (or Beneficial owner) in redemption of such Redeemable Units by any
amounts so withheld.

    

    10.6.2  After
the Notice Date, Redeemable Units shall no longer constitute issued and
Outstanding Units and no allocations or distributions shall be made with respect
to such Redeemable Units. In addition, after the Notice Date, the Redeemable
Units shall not be transferable.

    

    10.6.3  The
provisions of this Section 10.6 shall also be applicable to Units held by a
Limited Partner or Assignee as nominee of a Beneficial Owner.

    
      
         

      

      
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    SECTION
XI

    

    Admission
of Partners

    

    11.1.  Admission of Initial Limited
Partners and Other Creation Basket Purchases.  Subject to the
requirements of this Section 11, upon the issuance by the Partnership of Units
to the Initial Limited Partner and any other purchasers of a Creation Basket,
the General Partner shall admit the Initial Limited Partner and such other
purchasers of the Creation Basket to the Partnership as Limited Partners in
respect of the Units purchased.

    

    11.2.  Admission of Substituted Limited
Partners.  By transfer of a Unit in accordance with Section 10,
the transferor shall be deemed to have given the transferee the right to seek
admission as a Substituted Limited Partner subject to the conditions of, and in
the manner permitted under, this Agreement. A transferor of a Certificate shall,
however, only have the authority to convey to a purchaser or other transferee
who does not execute and deliver a Transfer Application (i) the right to
negotiate such Certificate to a purchaser or other transferee, and (ii) the
right to transfer the right to request admission as a Substituted Limited
Partner to such purchaser or other transferee in respect of the transferred
Units. Each transferee of a Unit (including, without limitation, any nominee
holder or an agent acquiring such Unit for the account of another Person) who
executes and delivers a Transfer Application shall, by virtue of such execution
and delivery, be an Assignee and be deemed to have applied to become a
Substituted Limited Partner with respect to the Units so transferred to such
Person. Such Assignee shall become a Substituted Limited Partner (i) at such
time as the General Partner consents thereto, which consent may be given or
withheld in the General Partner’s sole discretion, and (ii) when any such
admission is shown on the books and records of the Partnership, following the
consent of the General Partner to such admission.  If such consent is
withheld, such transferee shall be an Assignee. An Assignee shall have an
interest in the Partnership equivalent to that of a Limited Partner with respect
to allocations and distributions, including, without limitation, liquidating
distributions, of the Partnership. With respect to voting rights attributable to
Units that are held by Assignees, the General Partner shall be deemed to be the
Limited Partner with respect thereto and shall, in exercising the voting rights
in respect of such Units on any matter, vote such Units at the written direction
of the Assignee who is the Record Holder of such Units. If no such written
direction is received, such Units will not be voted. An Assignee shall have none
of the other rights of a Limited Partner.

    

    11.3.  Admission of Successor General
Partner.  A successor General Partner approved pursuant to this
Section 11.3 or the transferee of or successor to all of the General Partner’s
interest pursuant to Section 10.2 who is proposed to be admitted as a successor
General Partner shall be admitted to the Partnership as the General Partner,
effective immediately prior to the withdrawal or removal of the General Partner
pursuant to Section 12 or the transfer of the General Partner’s interest
pursuant to Section 10.2; provided, however, that no such successor shall be
admitted to the Partnership until compliance with the terms of Section 10.2 has
occurred. Any such successor shall carry on the business of the Partnership
without dissolution. In each case, the admission shall be subject to the
successor General Partner executing and delivering to the Partnership an
acceptance of all of the terms and conditions of this Agreement and such other
documents or instruments as may be required to effect the
admission.

    
      
         

      

      
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    11.4.  Admission
of Additional Limited Partners.

    

    11.4.1  A
Person (other than the General Partner, an Initial Limited Partner or a
Substituted Limited Partner) who makes a Capital Contribution to the Partnership
in accordance with this Agreement shall be admitted to the Partnership as an
Additional Limited Partner only upon furnishing to the General Partner (i)
evidence of acceptance in form satisfactory to the General Partner of all of the
terms and conditions of this Agreement, including, without limitation, the power
of attorney granted in this Agreement, and (ii) such other documents or
instruments as may be required in the discretion of the General Partner to
effect such Person’s admission as an Additional Limited Partner.

    

    11.4.2  Notwithstanding
anything to the contrary in this Section 11.4, no Person shall be admitted as an
Additional Limited Partner without the consent of the General Partner, which
consent may be given or withheld in the General Partner’s sole discretion. The
admission of any Person as an Additional Limited Partner shall become effective
on the date upon which the name of such Person is recorded on the books and
records of the Partnership, following the consent of the General Partner to such
admission.

    

    11.5.  Amendment of Agreement and
Certificate of Limited Partnership.  To effect the admission to
the Partnership of any Partner, the General Partner shall take all steps
necessary and appropriate under the Act to amend the records of the Partnership
and if necessary, to prepare as soon as practical an amendment of this Agreement
and if required by law, to prepare and file an amendment to the Certificate of
Limited Partnership and may for this purpose, among others, exercise the power
of attorney granted pursuant to Section 15.

    

    SECTION
XII

    

    Withdrawal
or Removal of Partners

    

    12.1.  Withdrawal
of the General Partner.

    

    12.1.1  The
General Partner shall be deemed to have withdrawn from the Partnership upon the
occurrence of any one of the following events (each such event herein referred
to as an “Event of
Withdrawal”):

    

    (a) the
General Partner voluntarily withdraws from the Partnership by giving written
notice to the other Partners;

    

    (b) the
General Partner transfers all of its rights as general partner pursuant to this
Agreement;

    

    (c) the
General Partner is removed;

    
      
         

      

      
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    (d) the
General Partner (1) makes a general assignment for the benefit of creditors; (2)
files a voluntary bankruptcy petition; (3) files a petition or answer seeking
for itself a reorganization, arrangement, composition, readjustment liquidation,
dissolution or similar relief under any law; (4) files an answer or other
pleading admitting or failing to contest the material allegations of a petition
filed against the General Partner in a proceeding of the type described in
clauses (1) — (3) of this sentence; or (5) seeks, consents to or acquiesces in
the appointment of a trustee, receiver or liquidator of the General Partner or
of all or any substantial part of its properties;

    

    (e) a
final and non-appealable judgment is entered by a court with appropriate
jurisdiction ruling that the General Partner is bankrupt or insolvent or a final
and non-appealable order for relief is entered by a court with appropriate
jurisdiction against the General Partner, in each case under any federal or
state bankruptcy or insolvency laws as now or hereafter in effect;
or

    

    (f) a
certificate of dissolution or its equivalent is filed for the General Partner,
or 90 days expire after the date of notice to the General Partner of revocation
of its charter without a reinstatement of its charter, under the laws of its
state of incorporation.

    

    If an
Event of Withdrawal specified in this Section 12.1.1(d), (e) or (f) occurs, the
withdrawing General Partner shall give written notice to the Limited Partners
within 30 days after such occurrence. The Partners hereby agree that only the
Events of Withdrawal described in this Section 12.1 shall result in the
withdrawal of the General Partner from the Partnership.

    

    12.1.2  Withdrawal
of the General Partner from the Partnership upon the occurrence of an Event of
Withdrawal will not constitute a breach of this Agreement under the following
circumstances: (i) the General Partner voluntarily withdraws by giving at least
90 days’ advance notice to the Limited Partners, such withdrawal to take effect
on the date specified in such notice; or (ii) at any time that the General
Partner ceases to be a General Partner pursuant to Section 12.1.1(b) or is
removed pursuant to Section 12.2.  If the General Partner gives a
notice of withdrawal pursuant to Section 12.1.1(a), holders of at least a
majority of such Outstanding Units (excluding for purposes of such determination
any Units owned by the General Partner and its Affiliates) may, prior to the
effective date of such withdrawal, elect a successor General Partner. If, prior
to the effective date of the General Partner’s withdrawal, a successor is not
selected by the Unitholders as provided herein, the Partnership shall be
dissolved in accordance with Section 13. If a successor General Partner is
elected, such successor shall be admitted immediately prior to the effective
time of the withdrawal or removal of the Departing Partner and shall continue
the business of the Partnership without dissolution.

    

    12.2.  Removal of the General
Partner.  The General Partner may be removed only if such
removal is approved by the Unitholders holding at least 66 2/3% of the
Outstanding Units (excluding for this purpose any Units held by the General
Partner and its Affiliates). Any such action by such holders for removal of the
General Partner must also provide for the election of a successor General
Partner by the Unitholders holding a majority of the Outstanding Units
(excluding for this purpose any Units held by the General Partner and its
Affiliates). Such removal shall be effective immediately following the admission
of a successor General Partner.

    
      
         

      

      
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    12.3.  Withdrawal of a Limited Partner
other than the Organizational Limited Partner.  In addition to
withdrawal of a Limited Partner due to its redemption of Units constituting a
Redemption Basket under this Agreement, the General Partner may, at any time, in
its sole discretion, require any Limited Partner to withdraw entirely from the
Partnership or to withdraw a portion of its Partner Capital Account, by giving
not less than 15 days’ advance written notice to the Limited Partner thus
designated. In addition, the General Partner without notice may require at any
time, or retroactively, withdrawal of all or any portion of the Capital Account
of any Limited Partner: (i) that made a misrepresentation to the General Partner
in connection with its purchase of Units; or (ii) whose ownership of Units would
result in the violation of any law or regulations applicable to the Partnership
or a Partner. The Limited Partner thus designated shall withdraw from the
Partnership or withdraw that portion of its Partner Capital Account specified in
such notice, as the case may be, as of the Close of Business on such date as
determined by the General Partner. The Limited Partner thus designated shall be
deemed to have withdrawn from the Partnership or to have made a partial
withdrawal from its Partner Capital Account, as the case may be, without further
action on the part of said Limited Partner and the provisions of Section 17.6
shall apply.

    

    SECTION
XIII

    

    Termination
and Distribution

    

    13.1.  Termination.  The
Partnership shall continue in effect from the date of its formation in
perpetuity, unless sooner terminated upon the occurrence of any one or more of
the following events:

    

    (a) The
death, adjudication of incompetence, bankruptcy, dissolution, withdrawal, or
removal of a General Partner who is the sole remaining General Partner, unless a
majority in interest of the Limited Partners within 90 days after such event
elects to continue the Partnership and appoints a successor General Partner;
or

    

    (b) The
affirmative vote of a majority in interest of the Limited Partners; provided,
however, that any such termination shall be subject to the conditions set forth
in this Agreement.

    

    13.2.  Assumption of
Agreements.  No vote by the Limited Partners to terminate the
Partnership pursuant to Section 13.1(b) shall be effective unless, prior to or
concurrently with such vote, there shall have been established procedures for
the assumption of the Partnership’s obligations arising under any agreement to
which the Partnership is a party and which is still in force immediately prior
to such vote regarding termination, and there shall have been an irrevocable
appointment of an agent who shall be empowered to give and receive notices,
reports and payments under such agreements, and hold and exercise such other
powers as are necessary to permit all other parties to such agreements to deal
with such agent as if the agent were the sole owner of the Partnership’s
interest, which procedures are agreed to in writing by each of the other parties
to such agreements.

    

    13.3.  Distribution

    
      
         

      

      
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    13.3.1  Upon
termination of the Partnership, the affairs of the Partnership shall be wound up
and all of its debts and liabilities discharged or otherwise provided for in the
order of priority as provided by law. The fair market value of the remaining
assets of the Partnership shall then be determined by the General Partner.
Thereupon, the assets of the Partnership shall be distributed to the Partners
pro rata in accordance with their Units. Each Partner shall receive its share of
the assets in cash or in kind, and the proportion of such share that is received
in cash may vary from Partner to Partner, all as the General Partner in its sole
discretion may decide. If such distributions are insufficient to return to any
Partner the full amount of its Capital Contributions, such Partner shall have no
recourse against any other Partner.

    

    13.3.2  The
winding up of the affairs of the Partnership and the distribution of its assets
shall be conducted exclusively by the General Partner or its successor, which is
hereby authorized to do all acts authorized by law for these purposes. Without
limiting the generality of the foregoing, the General Partner, in carrying out
such winding up and distribution, shall have full power and authority to sell
all or any of the Partnership’s assets or to distribute the same in kind to the
Partners.

    

    SECTION
XIV

    

    Meetings

    

    14.1.  Meeting of Limited
Partners.  Upon the written request of 20% or more in interest
of the Limited Partners, the General Partner may, but is not required to, call a
meeting of the Limited Partners. Notice of such meeting shall be given within 30
days after, and the meeting shall be held within 60 days after, receipt of such
request. The General Partner may also call a meeting not less than 20 and not
more than 60 days prior to the meeting. Any such notice shall state briefly the
purpose of the meeting, which shall be held at a reasonable time and
place.

    

    SECTION
XV

    

    Power of
Attorney

    

    15.1.  Appointment.  Each
Limited Partner and each Assignee hereby constitutes and appoints each of the
General Partner and, if a liquidator shall have been selected, the liquidator
severally (and any successor to either thereof by merger, transfer, assignment,
election or otherwise) and each of their respective authorized officers and
attorneys-in-fact with full power of substitution, as its true and lawful agent
and attorney-in-fact with full power and authority in its name, place and stead
to:

    
      
         

      

      
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    (a)
execute, swear to, acknowledge, deliver, file and record in the appropriate
public offices (i) all certificates, documents and other instruments (including,
without limitation, this Agreement and the Certificate of Limited Partnership
and all amendments or restatements thereof) that the General Partner or the
liquidator deems necessary or appropriate to form, qualify or continue the
existence or qualification of the Partnership as a limited partnership (or a
partnership in which the limited partners have limited liability) in the State
of Delaware and in all other jurisdictions in which the Partnership may conduct
business or own property, (ii) all certificates, documents and other instruments
that the General Partner or the liquidator deems necessary or appropriate to
reflect, in accordance with its terms, any amendment, change, modification or
restatement of this Agreement, (iii) all certificates, documents and other
instruments (including, without limitation, conveyances and a certificate of
cancellation) that the General Partner or the liquidator deems necessary or
appropriate to reflect the dissolution and liquidation of the Partnership
pursuant to the terms of this Agreement, (iv) all certificates, documents and
other instruments relating to the admission, withdrawal, removal or substitution
of any Partner or the Capital Contribution of any Partner, (v) all certificates,
documents and other instruments relating to the determination of the rights,
preferences and privileges of Units issued, and (vi) all certificates documents
and other instruments (including, without limitation, agreements and a
certificate of merger) relating to a merger or consolidation of the
Partnership;

    

    (b)
execute, swear to, acknowledge, deliver, file and record all ballots, consents,
approval waivers, certificates and other instruments necessary or appropriate,
in the sole discretion of the General Partner or the liquidator, to make,
evidence, give, confirm or ratify any vote, consent, approval, agreement or
other action that is made or given by the Partners hereunder or is consistent
with the terms of this Agreement or is necessary or appropriate, in the sole
discretion of the General Partner or the liquidator, to effectuate the terms or
intent of this Agreement, provided, that when required by this Agreement that
establishes a percentage of the Limited Partners or of the Limited Partners of
any class or series required to take any action, the General Partner or the
liquidator may exercise the power of attorney made in this Section 15 only after
the necessary vote, consent or approval of the Limited Partners or of the
Limited Partners of such class or series;

    

    15.2.  Survival.  The
foregoing power of attorney is hereby declared to be irrevocable and a power
coupled with an interest and it shall survive and not be affected by the
subsequent death, incompetence, disability, incapacity, dissolution, bankruptcy
or termination of any Limited Partner or Assignee and the transfer of all or any
portion of such Limited Partner’s or Assignee’s Partnership interest and shall
extend to such Limited Partners or Assignee’s heirs, successors, assigns and
personal representatives. Each such Limited Partner or Assignee hereby agrees to
be bound by any representation made by the General Partner or the liquidator
acting in good faith pursuant to such power of attorney; and each such Limited
Partner or Assignee hereby waives any and all defenses that may be available to
contest, negate or disaffirm the action of the General Partner or the liquidator
taken in good faith under such power of attorney. Each Limited Partner or
Assignee shall execute and deliver to the General Partner or the liquidator,
within 15 days after receipt of the General Partner’s or the liquidator’s
request therefor, such further designations, powers of attorney and other
instruments as the General Partner or the liquidator deems necessary to
effectuate this Agreement and the purposes of the
Partnership.

    
      
         

      

      
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    SECTION
XVI

    

    Creation
of Units

    

    16.1.  General.  The
Partnership will create and redeem Units from time to time, but only in one or
more Creation Baskets or Redemption Baskets (a block of 100,000 Units shall be
referred to as a “Basket”). The creation and
redemption of Baskets will only be made in exchange for delivery to the
Partnership or the distribution by the Partnership of the amount of United
States government securities with maturities of 2 years or less (“Treasuries”) and any cash
represented by the Baskets being created or redeemed, the amount of which will
be based on the combined NAV of the number of Units included in the Baskets
being created or redeemed determined on the day the order to create or redeem
Baskets is properly received.

    

    16.2.  Creation
Procedures.  On any Business Day, a Participant, may place an
order with the Partnership’s marketing agent to create one or more Baskets.
Purchase orders must be placed by 12:00 PM New York time or the close of regular
trading on the NYSE Arca, Inc., whichever is earlier. The day on which the
marketing agent receives a valid purchase order is the purchase order date. By
placing a purchase order, the Participant agrees to deposit Treasuries with the
Partnership, or a combination of Treasuries and cash. Prior to the delivery of
Baskets for a purchase order, the Participant must also have wired to the
custodian the non-refundable creation transaction fee described in this Section
16.

    

    16.3.  Determination of Required
Deposits.   The total deposit required to create each
Basket (“Creation Basket
Deposit”) is an amount of Treasuries and/or cash with a value that is in
the same proportion to the total assets of the Partnership (net of estimated
accrued but unpaid fees, expenses and other liabilities) on the date the order
to purchase is properly received as the number of Units to be created under the
purchase order is in proportion to the total number of Units outstanding on the
date the order is received. The General Partner determines, in its sole
discretion or in consultation with the administrator of the Partnership, the
requirements for Treasuries and the amount of cash, including the maximum
permitted remaining maturity of a Treasury and cash that may be included in
deposits to create Baskets.  The Partnership, or its marketing agent
on the Partnership’s behalf, will publish such requirements at the beginning of
each Business Day.  The amount of cash deposit required is the
difference between (i) the aggregate market value of the Treasuries included in
a Creation Basket Deposit as of 4:00 PM New York time on the date the order to
purchase is properly received and (ii) the total required deposit.

    

    16.4.  Delivery of Required
Deposits.  A Participant who places a purchase order is
responsible for transferring to the Partnership’s account with the custodian the
required amount of Treasuries and cash by the end of the third Business Day
following the purchase order date. Upon receipt of the deposit amount, the
administrator will direct DTC to credit the number of Baskets ordered to the
Participant’s DTC account on the third Business Day following the purchase order
date. The expense and risk of delivery and ownership of Treasuries until such
Treasuries have been received by the custodian on behalf of the Partnership
shall be borne solely by the Participant.

    

    16.5.  Rejection of Purchase
Orders.  The General Partner, or its marketing agent on its
behalf, shall have the absolute right but no obligation to reject a purchase
order or a Creation Basket Deposit if: (1) it determines that the purchase order
or the Creation Basket Deposit is not in proper form; (2) the General Partner,
in its sole discretion, believes that the purchase order or the Creation Basket
Deposit would have adverse tax consequences to the Partnership, Limited Partners
or Unitholders; (3) the acceptance or receipt of the Creation Basket Deposit
would, in the opinion of counsel to the General Partner, be unlawful; or (4)
circumstances outside the control of the General Partner, marketing agent or
custodian make it, for all practical purposes, not feasible to process creations
of Baskets (including if the General Partner determines that the investment
alternatives available to the Partnership at that time will not enable it to
meet its investment objective). None of the General Partner, marketing agent or
custodian will be liable for the rejection of any purchase order or Creation
Basket Deposit.

    
      
         

      

      
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    16.6.  Creation Transaction
Fee.  To compensate the Partnership for its expenses in
connection with the creation of Baskets, a Participant is required to pay a
transaction fee to the Partnership of $1,000 per order to create Baskets. An
order may include multiple Baskets. The transaction fee may be reduced,
increased or otherwise changed by the General Partner. The General Partner shall
notify DTC in advance of any change in the transaction fee and will not
implement any increase in the fee for the creation of Baskets until 30 days
after the date of the notice.

    

    SECTION
XVII

    

    Redemption
of Units

    

    17.1.  General.  The
procedures by which a Participant can redeem one or more Baskets mirror the
procedures for the creation of Baskets. On any Business Day, a Participant may
place an order with the marketing agent to redeem one or more Baskets.
Redemption orders must be placed by 12:00 PM New York time or the close of
regular trading on the NYSE Arca, Inc., whichever is earlier. A redemption order
so received is effective on the date it is received in satisfactory form by the
marketing agent. The day on which the marketing agent receives a valid
redemption order is the redemption order date. By placing a redemption order, a
Participant agrees to deliver the Baskets to be redeemed through DTC’s
book-entry system to the Partnership’s account with its custodian not later than
3:00 PM New York time on the third Business Day following the effective date of
the redemption order. Prior to the delivery of the redemption distribution for a
redemption order, the Participant must also have wired to the Partnership’s
account with the custodian the non-refundable redemption transaction fee
described in this Section 17.

    

    17.2.  Determination of Redemption
Distribution.  The redemption distribution from the Partnership
consists of a transfer to the redeeming Participant of an amount of Treasuries
and/or cash with a value that is in the same proportion to the total assets of
the Partnership (net of estimated accrued but unpaid fees, expenses and other
liabilities) on the date the order to redeem is properly received as the number
of Units to be redeemed under the redemption order is in proportion to the total
number of Units outstanding on the date the order to redeem is received. The
General Partner, directly or through its agent, will determine the requirements
for Treasuries and/or the amount of cash, including the maximum permitted
remaining maturity of a Treasury, and the proportions of Treasuries and cash,
that may be included in distributions to redeem Baskets. The marketing agent
will publish such requirements as of 4:00 PM New York time on the redemption
order date.

    
      
         

      

      
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    17.3.  Delivery of Redemption
Distribution.  The redemption distribution due from the
Partnership is delivered to the Participant by 3:00 PM New York time on the
third Business Day following the redemption order date if, by 3:00 PM New York
time on such third Business Day, the Partnership’s DTC account has been credited
with the Baskets to be redeemed. If the Partnership’s DTC account has not been
credited with all of the Baskets to be redeemed by such time, the redemption
distribution is delivered to the extent of whole Baskets received. Any remainder
of the redemption distribution is delivered on the next Business Day to the
extent of remaining whole Baskets received if the Partnership (1) receives the
fee applicable to the extension of the redemption distribution date which the
General Partner may, from time to time, determine and (2) the remaining Baskets
to be redeemed are credited to the Partnership’s DTC account by 3:00 PM New York
time on such next Business Day. Any further remaining amount of the redemption
order shall be cancelled and the Participant will indemnify the Partnership for
any losses, if any, due to such cancellation, including but not limited to the
difference in the price of investments sold as a result of the redemption order
and investments made to reflect that such order has been cancelled. Pursuant to
instruction from the General Partner, the custodian is also authorized to
deliver the redemption distribution notwithstanding that the Baskets to be
redeemed are not credited to the Partnership’s DTC account by 3:00 PM New York
time on the third Business Day following the redemption order date if the
Participant has collateralized its obligation to deliver the Baskets through
DTC’s book entry system on such terms as the General Partner may from time to
time determine.

    

    17.4.  Suspension or Rejection of
Redemption orders.  The General Partner may, in its discretion,
suspend the right of redemption, or postpone the redemption settlement date, (1)
for any period during which any of the New York Mercantile Exchange, the NYSE
Arca, Inc. or the New York Stock Exchange is closed other than customary weekend
or holiday closings, or trading on the NYSE Arca, Inc. is suspended or
restricted, (2) for any period during which an emergency exists as a result of
which delivery, disposal or evaluation of Treasuries is not reasonably
practicable, or (3) for such other period as the General Partner determines to
be necessary for the protection of the Limited Partners or Unitholders. None of
the General Partner, the marketing agent or the custodian will be liable to any
person or in any way for any loss or damages that may result from any such
suspension or postponement. The General Partner will reject a redemption order
if the order is not in proper form or if the fulfillment of the order, in the
opinion of its counsel, might be unlawful. The General Partner may also reject a
redemption order if the number of units being redeemed would reduce the
remaining outstanding Units to 100,000 Units (i.e., one basket) or less, unless
the General Partner has reason to believe that the party placing the redemption
order does in fact possess all of the outstanding Units and can deliver
them.

    

    17.5.  Redemption Transaction
Fee.  To compensate the Partnership for its expenses in
connection with the redemption of Baskets, a Participant is required to pay a
transaction fee to the Partnership of $1,000 per order to redeem Baskets. An
order may include multiple Baskets. The transaction fee may be reduced,
increased or otherwise changed by the General Partner. The General Partner shall
notify DTC in advance of any change in the transaction fee and will not
implement any increase in the fee for the redemption of Baskets until 30 days
after the date of the notice.

    
      
         

      

      
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    17.6.  Required
Redemption.  The General Partner may, at any time, in its sole
discretion, require any Limited Partner to withdraw entirely from the
Partnership or to withdraw a portion of its Partner Capital Account, by giving
not less than 15 days advance written notice to the Limited Partner thus
designated. In addition, the General Partner without notice may require at any
time, or retroactively, withdrawal of all or any portion of the Capital Account
of any Limited Partner: (i) that the General Partner determines is a benefit
plan investor (within the meaning of the Department of Labor Regulation (s)
2510.3-101(f)(2)) in order for the assets of the Partnership not to be treated
as plan assets under ERISA; (ii) that made a misrepresentation to the General
Partner in connection with its purchase of Units; or (iii) whose ownership of
Units would result in the violation of any law or regulations applicable to the
Partnership or a Partner. The Limited Partner thus designated shall withdraw
from the Partnership or withdraw that portion of its Partner Capital Account
specified in such notice, as the case may be, as of the Close of Business on
such date as determined by the General Partner. The Limited Partner thus
designated shall be deemed to have withdrawn from the Partnership or to have
made a partial withdrawal from its Partner Capital Account, as the case may be,
without further action on the part of said Limited Partner.

    

    SECTION
XVIII

    

    Miscellaneous

    

    18.1.  Notices.  Any
notice, offer, consent or other communication required or permitted to be given
or made hereunder shall be in writing and shall be deemed to have been
sufficiently given or made when delivered personally to the party (or an officer
of the party) to whom the same is directed, or (except in the event of a mail
strike) five (5) Business Days after being mailed by first-class mail, postage
prepaid, if to the Partnership or to a General Partner, or if to a Limited
Partner, to the address set forth on Exhibit C hereof. Any Partner may change
its address for the purpose of this Section 18.1 by giving notice of such change
to the Partnership, such change to become effective on the tenth (10th)
Business Day after such notice is given.

    

    18.2.  Waiver of
Partition.  Each Partner hereby irrevocably waives during the
term of the Partnership any right that it may have to maintain any action for
partition with respect to any Partnership property.

    

    18.3.  Governing Law, Successors,
Severability.  This Agreement shall be governed by the laws of
the State of Delaware, as such laws are applied by Delaware courts to agreements
entered into and to be performed in Delaware by and between residents of
Delaware and shall, subject to the restrictions on transferability set forth
herein, bind and inure to the benefit of the heirs, executors, personal
representatives, successors and assigns of the parties hereto. If any provision
of this Agreement shall be held to be invalid, the remainder of this Agreement
shall not be affected thereby.

    

    18.4.  Consent to
Jurisdiction.  The General Partner and the Limited Partners
hereby (i) irrevocably submit to the non-exclusive jurisdiction of any Delaware
state court or federal court sitting in Wilmington, Delaware in any action
arising out of or relating to this Agreement, and (ii) consent to the service of
process by mail. Nothing herein shall affect the right of any party to serve
legal process in any manner permitted by law or affect its right to bring any
action in any other court. Each party agrees that, in the event that any dispute
arising from or relating to this Agreement becomes subject to any judicial
proceeding, such party, to the fullest extent permitted by applicable law,
waives any right it may otherwise have to (a) seek punitive or consequential
damages, or (b) request a trial by jury.

    
      
         

      

      
        41

        
          

        

      

      
         

      

    

    

    18.5.  Entire
Agreement.  This Agreement constitutes the entire agreement
among the parties; it supersedes any prior agreement or understanding among
them, oral or written, all of which are hereby canceled. This Agreement may not
be modified or amended other than pursuant to Sections 3 and 15.

    

    18.6.  Headings.  The
headings in this Agreement are inserted for convenience of reference only and
shall not affect interpretation of this Agreement. Wherever from the context it
appears appropriate, each term stated in either the singular or the plural shall
include the singular and the plural and pronouns stated in either the masculine
or the neuter gender shall include the masculine, the feminine and the
neuter.

    

    18.7.  No Waiver.  The
failure of any Partner to seek redress for violation, or to insist on strict
performance, of any covenant or condition of this Agreement shall not prevent a
subsequent act which would have constituted a violation from having the effect
of an original violation.

    

    18.8.  Legends.  If
certificates for any interest or interests are issued evidencing a Limited
Partner’s interest in the Partnerships, each such certificate shall bear such
legends as may be required by applicable federal and state laws, or as may be
deemed necessary or appropriate by the General Partner to reflect restrictions
upon transfer contemplated herein.

    

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

    

    18.10.  Relationship between the Agreement
and the Act.  Regardless of whether any provisions of this
Agreement specifically refer to particular Default Rules (as defined below), (a)
if any provision of this Agreement conflicts with a Default Rule, the provision
of this Agreement controls and the Default Rule is modified or negated
accordingly, and (b) if it is necessary to construe a Default Rule as modified
or negated in order to effectuate any provision of this Agreement, the Default
Rule is modified or negated accordingly. For purposes of this Section 18.10,
“Default Rule” shall
mean a rule stated in the Act that applies except to the extent it is negated or
modified through the provisions of the Partnership’s certificate of limited
partnership or this Agreement.

    
      
         

      

      
        42

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Third Amended and
Restated Agreement of Limited Partnership on the date first written
above.

    

    
      	 
      	
              General
      Partner

            
	 
      	
              United
      States Commodity Funds LLC

            
	 
      	 
      
	 
      	
              By:

            	
              /s/ Howard Mah

            	 
      
	 
      	 
      	
              Name:
      Howard Mah

            
	 
      	 
      	
              Title:
      Management Director

            
	 
      	 
      
	 
      	
              Initial
      Limited Partner

            
	 
      	
              Kellogg
      Capital Markets

            
	 
      	 
      
	 
      	
              By:

            	
              /s/ Kevin J. Trimble

            	 
      
	 
      	 
      	
              Name:
      Kevin J. Trimble

            
	 
      	 
      	
              Title:
      Chief Operating Officer

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    
      
        	
                Assets

              	 
      	
                Management
Fee

              
	
                First
      $1,000,000,000

              	 
      	
                0.60%
      of NAV

              
	
                After
      the first $1,000,000,000

              	 
      	
                0.50%
      of NAV

              

      

    

    

    Fees and
Expenses are calculated on a daily basis and paid on a monthly basis (accrued at
1/365 of applicable percentage of the NAV on that day).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
B

    

    FORM
OF GLOBAL CERTIFICATE

    

    Evidencing
Units Representing Limited Partner Interests

    in
United States Natural Gas Fund, LP

    

    UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE FUND OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUIRED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
HAS AN INTEREST HEREIN.

    

    This is
to certify that Cede & Co. is the owner and registered holder of this
Certificate evidencing the ownership of issued and outstanding Limited Partner
Units (“Units”), each
of which represents a fractional undivided unit of a beneficial interest in
United States Natural Gas Fund, LP (the “Fund”), a Delaware limited
partnership.  Capitalized terms used not defined herein have the
meaning given to such terms in the Third Amended and Restated Agreement of
Limited Partnership, as amended, supplemented or restated to the date hereof
(the “Limited Partnership
Agreement”).

    

    At any
given time, this Certificate shall represent the limited units of beneficial
interest in the Fund purchased by a particular authorized Participant on the
date of this Certificate. The Limited Partnership Agreement of the Fund provides
for the deposit of cash with the Fund from time to time and the issuance by the
Fund of additional Creation Baskets representing the undivided units of
beneficial interest in the assets of the Fund. At the request of the registered
holder, this Certificate may be exchanged for one or more Certificates issued to
the registered holder in such denominations as the registered holder may
request; provided, however, that in the aggregate, the Certificates issued to
the registered holder hereof shall represent all Units outstanding at any given
time.

    

    Each
authorized Participant hereby grants and conveys all of its rights, title and
interest in and to the Fund to the extent of the undivided interest represented
hereby to the registered holder of this Certificate subject to and in pursuance
of the Limited Partnership Agreement, all the terms, conditions and covenants of
which are incorporated herein as if fully set forth at length.

    

    The
registered holder of this Certificate is entitled at any time upon tender of
this Certificate to the Fund, endorsed in blank or accompanied by all necessary
instruments of assignment and transfer in proper form, at its principal office
in the State of California and, upon payment of any tax or other governmental
charges, to receive at the time and in the manner provided in the Limited
Partnership Agreement, such holder’s ratable portion of the assets of the Fund
for each Redemption Basket tendered and evidenced by this
Certificate.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    The
holder of this Certificate, by virtue of the purchase and acceptance hereof,
assents to and shall be bound by the terms of the Limited Partnership Agreement,
copies of which are on file and available for inspection at reasonable times
during business hours at the principal business office of the General
Partner.

    

    The Fund
may deem and treat the person in whose name this Certificate is registered upon
the books of the Fund as the owner hereof for all purposes and the Fund shall
not be affected by any notice to the contrary.

    

    The
Limited Partnership Agreement and this Certificate are executed and delivered by
United States Commodity Funds LLC as General Partner of the Fund, in the
exercise of the powers and authority conferred and vested in it by the Limited
Partnership Agreement. The representations, undertakings and agreements made on
the part of the Fund in the Limited Partnership Agreement or this Certificate
are made and intended not as personal representations, undertakings and
agreements by the General Partner, other than acting in its capacity as such,
but are made and intended for the purpose of binding only the Fund. Nothing in
the Limited Partnership Agreement or this Certificate shall be construed as
imposing any liability on the General Partner, individually or personally, to
fulfill any representation, undertaking or agreement other than as provided in
the Limited Partnership Agreement or this Certificate.

    

    THE
HOLDER OF THIS SECURITY ACKNOWLEDGES FOR THE BENEFIT OF UNITED STATES NATURAL
GAS FUND, LP THAT THIS SECURITY MAY NOT BE SOLD, OFFERED, RESOLD, PLEDGED OR
OTHERWISE TRANSFERRED IF SUCH TRANSFER WOULD VIOLATE THE THEN APPLICABLE FEDERAL
OR STATE SECURITIES LAWS OR RULES AND REGULATIONS OF THE SECURITIES AND EXCHANGE
COMMISSION, ANY STATE SECURITIES COMMISSION OR ANY OTHER GOVERNMENTAL AUTHORITY
WITH JURISDICTION OVER SUCH TRANSFER, TERMINATE THE EXISTENCE OR QUALIFICATION
OF UNITED STATES NATURAL GAS FUND, LP UNDER THE LAWS OF THE STATE OF DELAWARE,
OR CAUSE UNITED STATES NATURAL GAS FUND, LP TO BE TREATED AS AN ASSOCIATION
TAXABLE AS A CORPORATION OR OTHERWISE TO BE TAXED AS AN ENTITY FOR FEDERAL
INCOME TAX PURPOSES (TO THE EXTENT NOT ALREADY SO TREATED OR TAXED). UNITED
STATES COMMODITY FUNDS LLC, THE GENERAL PARTNER OF UNITED STATES NATURAL GAS
FUND, LP, MAY IMPOSE ADDITIONAL RESTRICTIONS ON THE TRANSFER OF THIS SECURITY IF
IT RECEIVES AN OPINION OF COUNSEL THAT SUCH RESTRICTIONS ARE NECESSARY TO AVOID
A SIGNIFICANT RISK OF UNITED STATES NATURAL GAS FUND, LP BECOMING TAXABLE AS A
CORPORATION OR OTHERWISE BECOMING TAXABLE AS AN ENTITY FOR FEDERAL INCOME TAX
PURPOSES. THE RESTRICTIONS SET FORTH ABOVE SHALL NOT PRECLUDE THE SETTLEMENT OF
ANY TRANSACTIONS INVOLVING THIS SECURITY ENTERED INTO THROUGH THE FACILITIES OF
ANY NATIONAL SECURITIES EXCHANGE ON WHICH THIS SECURITY IS LISTED OR ADMITTED TO
TRADING.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    This
Certificate shall not become valid or binding for any purpose until properly
executed by the General Partner.

    

    IN
WITNESS WHEREOF, the General Partner of the Fund has caused this Certificate to
be executed in its name by the manual or facsimile signature of one of its
Authorized Persons.

    

    
      
        
          
            	 
      	
                    United
      States Commodity Funds LLC, as General Partner

                  	 
      
	 
      	 
      	 
      
	 
      	
                    By:

                  	
                         

                  	 
      	 
      
	 	 	

                    Date:

                  	 	 

          

        

      

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    EXHIBIT
C

    

    ADDRESSES
FOR NOTICE

    

    United
States Commodity Funds LLC

    1320
Harbor Bay Parkway, Suite 145

    Alameda,
California 9450

    

    with a
copy to

    

    Brown
Brothers Harriman & Co.

    40 Water
Street

    Boston,
MA  02109

    Attention:
Manager, Fund Administration Department

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
D

    

    APPLICATION
FOR TRANSFER OF UNITS

    

    Transferees
of Units must execute and deliver this application to United States Natural Gas Fund, LP,
c/o United States Commodity Funds LLC, 1320 Harbor Bay Parkway, Suite 145,
Alameda, California 94502, to be admitted as limited partners to United
States Natural Gas Fund, LP.

    

    The
undersigned (“Assignee”) hereby applies
for transfer to the name of the Assignee of the Units evidenced hereby and
hereby certifies to United States Natural Gas Fund, LP (the “Partnership”) that the
Assignee (including to the best of Assignee’ s knowledge, any person for whom
the Assignee will hold the Units) is an Eligible Holder.*

    

    The
Assignee (a) requests admission as a Limited Partner and agrees to comply with
and be bound by, and hereby executes, the Third Amended and Restated Agreement
of Limited Partnership of the Partnership, as amended, supplemented or restated
to the date hereof (the “Limited Partnership
Agreement”), (b) represents and warrants that the Assignee has all right,
power and authority and, if an individual, the capacity necessary to enter into
the Limited Partnership Agreement, (c) appoints the General Partner of the
Partnership and, if a Liquidator shall be appointed, the Liquidator of the
Partnership as the Assignee’s attorney-in-fact to execute, swear to, acknowledge
and file any document, including, without limitation, the Limited Partnership
Agreement and any amendment thereto and the Certificate of Limited Partnership
of the Partnership and any amendment thereto, necessary or appropriate for the
Assignee’s admission as a Substituted Limited Partner and as a party to the
Limited Partnership Agreement, (d) gives the powers of attorney provided for in
the Limited Partnership Agreement, and (e) makes the waivers and gives the
consents and approvals contained in the Limited Partnership Agreement.
Capitalized terms used but not defined herein have the meanings given to such
terms in the Limited Partnership Agreement.

    

    
      	
              Date:

            	
                 

            	 
      	 
      

    

    

    
      
        
          	
                     

                	 
      	
                     

                	 
      
	
                  Social
      Security or other identifying

                	
                  Signature
      of Assignee

                
	
                  number
      of Assignee

                	 
      
	 
      	 
      
	  
      	 
      	  
      	 
      
	
                  Purchase
      Price including commissions, if any

                	
                  Name
      and Address of Assignee

                

        

      

    

    

    Type of
Entity (check one):

    

    
      	
              Individual

            	
              Partnership

            	
              Corporation

            
	
              Trust

            	
              Other
      (specify)

            	 
      

    

    

    If not an
Individual (check one):

    

     the
entity is subject to United States federal income taxation on the income
generated by the Partnership;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     the
entity is not subject to United States federal income taxation, but it is a
pass-through entity and all of its beneficial owners are subject to United
States federal income taxation on the income generated by the
Partnership;

    

     the
entity is not subject to United States federal income taxation and it is (a) not
a pass-through entity or (b) a pass-through entity, but not all of its
beneficial owners are subject to United States federal income taxation on the
income generated by the Partnership. Important Note — by checking
this box, the Assignee is contradicting its certification that it is an Eligible
Holder.

    

    * The
Term “Eligible Holder”
means (a) an individual or entity subject to United States federal income
taxation on the income generated by the Partnership; or (b) an entity not
subject to United States federal income taxation on the income generated by the
Partnership, so long as all of the entity’s owners are subject to United States
federal income taxation on the income generated by the Partnership. Individuals
or entities are subject to taxation, in the context of defining an Eligible
Holder, to the extent they are taxable on the items of income and gain allocated
by the Partnership. Schedule I hereto contains a list of various types of
investors that are categorized and identified as either “Eligible Holders” or
“Non-Eligible Holders.”

    

    Nationality
(check one):

    

     U.S.
Citizen, Resident or Domestic
Entity**                Non-resident
Alien**

    

     Foreign
Corporation**

    

    ** As those terms are defined in the
Code.

    

    If the
U.S. Citizen, Resident or Domestic Entity box is checked, the following
certification must be completed.

    

    Under
Section 1445(e) of the Internal Revenue Code of 1986, as amended (the “Code”), the Partnership must
withhold tax with respect to certain transfers of property if a holder of an
interest in the Partnership is a foreign person. To inform the Partnership that
no withholding is required with respect to the undersigned interestholder’s
interest in it, the undersigned hereby certifies the following (or, if
applicable, certifies the following on behalf of the
interestholder).

    

    Complete
Either A or B:

    

    
      	
              A.

            	
              Individual
      Interestholder

            

    

    

    
      	
              1.

            	
              I
      am not a non-resident alien for purposes of U.S. income
      taxation.

            

    

    

    
      	
              2.

            	
              My
      U.S. taxpayer identification number (Social Security Number) is
      ____________

            

    

    

    
      	
              3.

            	
              My
      home address is
      _____________________________________________________

            

    

    

    
      	
              B.

            	
              Partnership,
      Corporation or Other
Interestholder

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    1. The
interestholder is not a foreign corporation, foreign partnership, foreign trust
or foreign estate (as those terms are defined in the Code and Treasury
regulations).

    

    2. The
interestholder’s U.S. employer identification number is
__________________

    

    3. The
interestholder’s office address and place of incorporation (if applicable) is
__________________

    

    The
interestholder agrees to notify the Partnership within sixty (60) days of the
date the interestholder becomes a foreign person.

    

    The
interestholder understands that this certificate may be disclosed to the
Internal Revenue Service by the Partnership and that any false statement
contained herein could be punishable by fine, imprisonment or both.

    

    Under
penalties of perjury, I declare that I have examined this certification and, to
the best of my knowledge and belief, it is true, correct and complete and, if
applicable, I further declare that I have authority to sign this document on
behalf of:

    

    
      
        
          
            	
                    Name
      of Interestholder

                  
	
                       

                  
	 
      
	
                    Signature
      and Date

                  
	 
      
	 
      
	
                    Title
      (if applicable)

                  
	 
      

          

        

      

    

    

    Note: If
the Assignee is a broker, dealer, bank, trust company, clearing corporation,
other nominee holder or an agent of any of the foregoing, and is holding for the
account of any other person, this application should be completed by an officer
thereof or, in the case of a broker or dealer, by a registered representative
who is a member of a registered national securities exchange or a member of
FINRA, or, in the case of any other nominee holder, a person performing a
similar function. If the Assignee is a broker, dealer, bank, trust company,
clearing corporation, other nominee owner or an agent of any of the foregoing,
the above certification as to any person for whom the Assignee will hold the
Units shall be made to the best of the Assignee’s knowledge.

     

    
      
         

      

      
        3Exhibit
10.1

     

    EMPLOYMENT
AND

    NON-COMPETITION
AGREEMENT

     

    
      This
Employment and Non-competition Agreement (this “Agreement”) is made as of
December 28, 2010, between First Financial Bancorp., an Ohio corporation (the
“Company”), and Claude
E. Davis (“Employee”).

       

      WHEREAS, the Company and
Employee (each, the “Party,” and together, the
“Parties”) were parties
to an Employment and Non-competition Agreement dated September 21, 2004, which
agreement was amended and restated on August 22, 2006 pursuant to the Amended
and Restated Employment and Non-competition Agreement, and any amendments
thereto (the “Prior
Agreement”); and

       

    

    WHEREAS, the Parties desire to
terminate the Prior Agreement and enter into a new agreement as provided
herein.

     

    NOW, THEREFORE, the Parties hereby
agree as follows:

     

    § 1.
Employment. The
Company hereby agrees to continue to employ Employee, and Employee hereby agrees
to continue his employment with the Company, upon the terms and subject to the
conditions described in this Agreement.

     

    § 2.
Term. The
term of Employee’s employment with the Company pursuant to this Agreement shall
begin on January 1, 2011 (the “Effective Date”) and shall
continue until April 30, 2012 (the “Initial Term”), unless sooner terminated
pursuant to § 6 of this Agreement. The term of this Agreement shall renew
automatically for successive one-year periods after the Initial Term (the “Renewal Terms”), unless and until terminated
by either the Company or Employee at the end of the Initial Term or any Renewal
Term, as applicable, upon not less than ninety (90) days’ prior written notice
given by either Party prior to the end of the Initial Term or any Renewal Term,
as applicable (it being understood that non-renewal of this Agreement shall not
result in a termination of employment unless the Party providing such notice of
non-renewal also specifies in such notice that Employee’s employment shall
terminate at the expiration of the then-current term). The Initial Term and all
Renewal Terms, if any, shall constitute the “Term,” unless sooner
terminated pursuant to § 6 of this Agreement. Notwithstanding the foregoing, in
the event of the consummation of a “Change in Control” of the Company (as
defined below), the Term shall be the two-year period following the consummation
of such Change in Control.

     

    § 3.
Services. During
the Term, Employee shall be employed as the President and Chief Executive
Officer of the Company, reporting directly to the Board of Directors of the
Company (the “Board”),
and shall perform such services and be responsible for such activities as may be
reasonably assigned to him from time to time by the Board or a duly authorized
Board committee, subject to the business policies and operating programs,
budgets, procedures, and directions established from time to time by the Company
(the “Services”).  Employee
shall devote his best efforts and full business and professional time,
attention, energy, loyalty, and skill to rendering the Services, seeing to the
business affairs of the Company, and advancing the Company’s
interests.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    § 4.
Compensation.

     

    (A)        Base
Compensation.  As compensation for his Services during the
Term, the Company shall pay Employee a base salary at the annual rate of
$650,000 (the “Base
Salary”), payable in accordance with the Company’s general policies and
procedures for payment of salaries to its executive officers as in effect from
time to time.  Employee’s performance shall be reviewed not less often
than annually by the Board or the Compensation Committee of the Board (the
“Compensation
Committee”) for the purpose of evaluating potential increases in the Base
Salary, but the Company shall not be obligated to make any such
increases.

     

    (B)        Short-Term Bonus.
With respect to each fiscal year of the Company ending during the Term
(including with respect to the fiscal year that includes the Effective Date),
Employee shall be eligible to participate in the Company’s Annual Short-Term
Bonus Plan or such other short-term bonus compensation plan established by the
Board or a Board committee as in effect from time to time (the “Bonus Plan”). For purposes of
the Bonus Plan, Employee’s target annual bonus opportunity shall be equal
to fifty percent (50%) of the Employee’s annual rate of Base Salary as in
effect at the start of the fiscal year of the Company to which the short-term
bonus award relates (the “Target Bonus Amount”), with
the actual amount and terms and conditions of any such short-term bonus award to
be determined by the Compensation Committee consistent with and subject to the
terms of the Bonus Plan; provided, however, that, other than
with respect to the Target Bonus Amount, the terms of the Bonus Plan applicable
to Employee shall be comparable in all material respects to the terms applicable
to the Company’s executive officers generally. The bonus, if any, for each
fiscal year shall be paid to Employee by no later than the fifteenth (15th) day
of the third (3rd) month following the end of such fiscal year, unless the
Company or Employee, as applicable, shall elect to defer the receipt of such
bonus pursuant to an arrangement that meets the requirements of Section 409A of
the Internal Revenue Code of 1986, as amended (the “Code”).

     

    (C)        Long-Term Incentive Award
Opportunity. With respect to each fiscal year of the Company during the
Term, Employee shall be eligible to be awarded a long-term incentive award
(“LTI Award”), with a
target award opportunity having a value (based on the grant date value of any
such LTI Award, as determined in accordance with the Company’s standard
valuation methodology and procedures for equity and equity-based awards as
applied consistently with respect to other executive officers of the Company)
equal to one hundred percent (100%) of the Base Salary. The actual
amount and terms and conditions of any such LTI Award shall be determined by the
Compensation Committee consistent with and subject to the terms of the
applicable long-term incentive plan of the Company as in effect from time to
time.

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    (D)        Employee Benefits.
During the Term, Employee shall be eligible to participate in the employee
pension, including any supplemental pension and savings plans as in effect from
time to time, and welfare benefits and other group employee benefits, such as
sick leave, vacation, group disability and health, life, and accident insurance
and similar indirect compensation programs, which may from time to time be
offered generally to the Company’s executive officers, subject in each case to
the terms and conditions of the applicable benefit plan or program.

     

    § 5.
Confidentiality;
Non-competition; Non-solicitation; Non-disparagement.

     

    (A)        Confidentiality.
Employee shall not, directly or indirectly, at any time (whether during the Term
or thereafter), disclose any Confidential Information (as defined below) to any
person, association or other entity (other than the Affiliated Companies, as
defined below), or use, or authorize or assist any person, association or other
entity (other than the Affiliated Companies) to use, any Confidential
Information, excepting only disclosures required by applicable law; provided that if Employee
believes that disclosure of Confidential Information is required by applicable
law, Employee shall promptly (and in any event prior to such disclosure) give
the Company notice of such proposed disclosure and cooperate with the Company in
all ways reasonably requested by it in its efforts to obtain a protective order
or otherwise limit the scope of such disclosure to the extent the Company deems
necessary or appropriate. Upon termination of his employment with the Company
(for any reason), Employee shall promptly deliver to the Company all documents
and other materials containing any Confidential Information which are in his
possession or under his control.

     

    (B)        Non-competition.
During
the Term and during the first twelve (12) months of the Restricted Period (as
defined below), Employee shall not, directly or indirectly, whether individually
or as a shareholder or other owner, partner, member, director, officer,
employee, independent contractor, creditor or agent of any person (other than
for the Company), enter into, engage in, or promote or assist (financially or
otherwise), directly or indirectly, any business which provides any commercial
banking, savings banking, mortgage lending, or any similar lending or banking
services (the “Restricted
Services”) anywhere in the geographic area consisting of the states of
the United States in which any of the Affiliated Companies operate banking
offices at any time during the Term (the “Restricted
Territory”).  Notwithstanding the foregoing, ownership, for
personal investment purposes only, of 1% or less of the outstanding capital
stock of a publicly traded corporation shall not constitute a violation
hereof.

    (C)        Non-solicitation of
Clients. During the Term and during the Restricted Period, Employee shall
not, directly or indirectly, whether individually or as a shareholder or other
owner, partner, member, director, officer, employee, independent contractor,
creditor or agent of any person (other than for the Company):

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    (1)        
Solicit (as defined below) any person or entity located in the Restricted
Territory for the provision of any Restricted Services;

     

    (2)        
Solicit or attempt in any manner to persuade any client or customer of any
Affiliated Company to cease to do business, to refrain from doing business or to
reduce the amount of business which any client or customer has customarily done
or contemplates doing with any of the Affiliated Companies; or

     

    (3)        
interfere with or damage (or attempt to interfere with or damage) any
relationship between an Affiliated Company and any client or
customer.

     

    (D)        Non-solicitation of
Employees; No Hire. During the Term and during the Restricted Period,
Employee shall not, directly or indirectly, whether individually or as a
shareholder or other owner, partner, member, director, officer, employee,
independent contractor, creditor or agent of any person (other than for any
Affiliated Company):

     

    (1)        
Solicit any employee, officer, director, agent or independent contractor of any
Affiliated Company to terminate his or her relationship with, or otherwise
refrain from rendering services to, any Affiliated Company, or otherwise
interfere or attempt to interfere in any way with any Affiliated Company’s
relationship with any of its employees, officers, directors, agents or
independent contractors; or

     

    (2)        
employ or engage any person who, at any time within the two-year period
immediately preceding such employment or engagement, was an employee, officer or
director of any Affiliated Company.

     

    (E)        
Non-disparagement.
Employee shall not, directly or indirectly, at any time (whether during the Term
or thereafter), make any public statement (oral or written), or take any other
action, that is disparaging to any Affiliated Company. The provisions of this §
5(E) shall not preclude Employee from making truthful statements to correct any
false statements made by any Affiliated Company or any person acting on behalf
thereof about Employee.

     

    (F)        
Defined Terms.
For purposes of this Agreement, the following terms shall have the meaning set
forth below:

    (1)        
“Affiliated Companies”
shall mean the Company, all of its subsidiaries, and any other entities
controlled by, controlling, or under common control with the Company, including
any successors thereof, except that, following the consummation of a Change in
Control, for purposes of §§ 5(B) and 5(C), Affiliated Companies shall be limited
to the Company and it subsidiaries as of immediately prior to the consummation
of such Change in Control.

     

    (2)        
“Change in Control” has
the meaning given such term in the Company’s 2009 Employee Stock Plan, as in
effect on the Effective Date.

     

    
      
        
        

      

      
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    (3)        
“Confidential
Information” shall mean all trade secrets, proprietary data, and other
confidential information of or relating to any Affiliated Company, including
without limitation financial information, information relating to business
operations, services, promotional practices, and relationships with customers,
suppliers, employees, independent contractors, or other parties, and any
information which any Affiliated Company is obligated to treat as confidential
pursuant to any course of dealing or any agreement to which it is a party or
otherwise bound, provided that Confidential
Information shall not include information that is or becomes available to the
general public and did not become so available through any breach of this
Agreement by Employee or Employee’s breach of a duty owed to the
Company.

     

    (4)        
“Restricted Period”
shall mean the two-(2-) year period following Employee’s termination of
employment with the Company or any Affiliated Company (whether pursuant to this
Agreement or otherwise) for any reason.

     

    (5)        
“Solicit” shall mean any
direct or indirect communication of any kind whatsoever, regardless of by whom
initiated, inviting, advising, persuading, encouraging or requesting any person
or entity, in any manner, to take or refrain from taking any action; provided, however, that the term
“Solicit” shall not include general advertisements by an entity with which
Employee is associated or other communications in any media not targeted
specifically at any specific individual described in § 5(C) or
5(D).

     

    (G)        
Enforcement; Remedies;
Blue Pencil. Employee acknowledges that: (1) the various covenants,
restrictions, and obligations set forth in this § 5 are separate and independent
obligations, and may be enforced separately or in any combination; (2) the
provisions of this § 5 are fundamental and essential for the protection of the
Company’s and the Affiliated Companies’ legitimate business and proprietary
interests, and the Affiliated Companies (other than the Company) are intended
third-party beneficiaries of such provisions; (3) such provisions are reasonable
and appropriate in all respects and impose no undue hardship on Employee; and
(4) in the event of any violation by Employee of any of such provisions, the
Company and, if applicable, the Affiliated Companies, will suffer irreparable
harm and their remedies at law may be inadequate. In the event of any violation
or attempted violation of any provision of this § 5 by Employee, the Company and
the Affiliated Companies, or any of them, as the case may be, shall be entitled
to a temporary restraining order, temporary and permanent injunctions, specific
performance, and other equitable relief, without any showing of irreparable harm
or damage or the posting of any bond, in addition to any other rights or
remedies that may then be available to them, including, without limitation,
money damages and the cessation of the payment or provision of the severance
payments and benefits as contemplated under § 7(D). If any of the covenants set
forth in this § 5 is finally held to be invalid, illegal or unenforceable
(whether in whole or in part), such covenant shall be deemed modified to the
extent, but only to the extent, of such invalidity, illegality or
unenforceability, and the remaining such covenants shall not be affected
thereby.

    
      
         

      

      
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    § 6.
Termination.

     

    (A)        Employee’s
employment with the Company and the Term of this Agreement:

     

    (1)        
shall terminate automatically upon the death of Employee;

     

    (2)        
may be terminated by Employee other than for Good Reason (as defined below) upon
not less than ninety (90) days’ prior written notice given to the
Company;

     

    (3)        
may be terminated by the Company without Cause (as
defined below) upon written notice to Employee at any time, which
termination shall be effective immediately or as of such later date as specified
in such notice (not to exceed thirty (30) days without Employee’s
consent);

     

    (4)        
may be terminated by Employee at any time for Good Reason upon not less than
thirty (30) days’ prior written notice to the Company; or

     

    (5)        
may be terminated by the Company immediately upon notice to Employee at any time
(a) for Cause or (b) if Employee is then under a Long-Term Disability (as
defined below).

     

    (B)        
For purposes of this Agreement:

     

    (1)        
“Cause” shall mean any
one or more of the following:

     

    (a)        
(i) an indictment of Employee, or plea of guilty or plea of nolo contendere by Employee, to a
charge of an act constituting a felony under the federal laws of the United
States, the laws of any state, or any other applicable law, (ii) fraud,
embezzlement, or misappropriation of assets, (iii) willful misfeasance or
dishonesty, or (iv) other actions or criminal conduct which materially and
adversely affects the business (including business reputation) or financial
condition of the Company;

    (b)        
the continued failure of Employee to (i) perform substantially Employee’s duties
with the Company (other than any such failures resulting from incapacity due to
physical or mental illness), (ii) observe all material obligations and
conditions to be performed and observed by Employee under this Agreement, or
(iii) perform his duties in accordance, in all material respects, with the
policies and directions established from time to time by the Board or a duly
authorized Board committee (any such failure, a “Performance Failure”), and to
correct such Performance Failure within not more than fifteen (15) days
following written notice from the Board delivered to Employee, which notice
specifically identifies the manner in which the Board believes that Employee has
not substantially performed; or

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    (c)        
having corrected (or the Company having waived the correction of) a Performance
Failure, the occurrence of any subsequent Performance Failure (whether of the
same or different type or nature).

     

    For
purposes of whether or not conduct constituting Cause has occurred, any act, or
failure to act, based upon authority given pursuant to a resolution duly adopted
by the Board or upon the advice of counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, by Employee in good faith and in the
best interests of the Company. The cessation of employment of Employee shall not
be deemed to be for Cause unless and until there shall have been delivered to
Employee a copy of a resolution duly adopted by the affirmative vote of not less
than a majority of the entire membership of the Board at a meeting of the Board
called and held for such purpose (after reasonable notice is provided to
Employee and Employee is given an opportunity, together with counsel, to be
heard before the Board), finding that, in the opinion of the Board, Employee is
guilty of the conduct described in clause (a) (other than clause (i)), (b) or
(c) above.

     

    (2)        
“Long-Term Disability”
shall mean that, because of physical or mental incapacity, it is more likely
than not that Employee will be unable, within 180 days after such incapacity
commenced, to perform the essential functions of his position with the Company,
with or without reasonable accommodation. In the event of any disagreement about
whether or when Employee is under a Long-Term Disability, the question shall be
determined:

     

    (a)        
by a physician selected by agreement between the Parties if such a physician is
selected within ten (10) days after either Party requests the other to so agree;
or, if not,

     

    (b)        
by two physicians, the first of whom shall be selected by Employee and the
second of whom shall be selected by the Company or, if Employee fails to make a
selection within ten (10) days after being requested to do so by the Company,
the second physician shall be selected by the first physician; and

     

    (c)        
if the two physicians fail to agree, a third physician selected by the first two
physicians. Employee shall submit to all reasonable examinations requested by
any such physicians.

    (3)        
“Good Reason” shall mean
the occurrence, without Employee’s consent, of (a) a significant reduction in
Employee’s Base Salary, except for any decrease that is generally applicable to
other similarly situated senior executives of the Company; (b) the failure of
the Company to pay or provide to Employee when due any material amount of
compensation or material benefit that is required to be paid or provided under
this Agreement, after written notice of such purported failure is provided to
the Company by Employee and the Company is given a reasonable opportunity to
cure such failure; (c)
a significant reduction in Employee’s authority or responsibilities as set forth
in §3 of this Agreement; or (d) the failure of the Company to obtain the written
agreement of any successor to the Company or the business of the Company to
assume this Agreement (solely to the extent such assumption does not occur by
operation of law).

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    § 7.
Severance.

     

    (A)        
Termination by the
Company Other than for Cause or due to Employee’s Death or Long-Term Disability
or by Employee for Good Reason. In the event that (i) during the Term (or
during the one-year period following the expiration of the Term due to
non-renewal of this Agreement at the election of the Company), the Company
terminates Employee’s employment without Cause pursuant to § 6(A)(3) (for the
avoidance of doubt, other than due to Employee’s death or Long-Term Disability,
which shall be governed by § 7(B) below) or (ii) during the Term, Employee
terminates his employment for Good Reason pursuant to § 6(A)(4), and, within
fifty (50) days following Employee’s date of termination, Employee provides the
Company with (and does not revoke such release prior to the date specified
therein) a separate, written release in substantially the form attached hereto
as Exhibit A (the “Release”), Employee shall
receive the following payments and benefits at the times specified below
(subject to § 12 of this Agreement, including the Delay of Payment provision in
§ 12(B)):

     

    (1)        
Employee’s accrued and unpaid Base Salary and accrued and unused vacation
through the date of termination, to the extent not theretofore paid (the “Accrued Obligations”), which
payments shall not be subject to the Release and shall be paid within thirty
(30) days of the date of termination;

     

    (2)        
“Termination Compensation”
equal to two years of Employee’s Base Salary (not taking into account any
reduction in Base Salary that serves as the basis for a termination for Good
Reason), payable in equal bi-weekly installments over a 24-month period (the
“Severance Period”),
commencing with the first payroll period following the sixtieth (60th) day after
Employee’s date of termination of employment;

    (3)        
“Termination Short-Term Bonus”
equal to two times the Target Bonus Amount, payable in equal bi-weekly
installments over the Severance Period, commencing with the first payroll period
following the sixtieth (60th) day after Employee’s date of termination of
employment (the Termination Compensation and Termination Short-Term Bonus,
collectively, the “Severance
Benefits”);

     

    (4)        
During the one-year period following the date of termination, Employee shall be
entitled to full executive outplacement assistance with an agency selected by
the Company with the fee paid by the Company in an amount not to exceed five
percent (5%) of Employee’s Base Salary;

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    (5)        
If the Company’s severance plan of general applicability as in effect on
Employee’s date of termination provides for continued payment by the Company of
all or a portion of the cost of the premiums for continuation coverage under the
Company’s health care plan pursuant to Section 4980B of the Code (“COBRA Coverage”) and provided Employee elects
COBRA Coverage, Employee shall be provided with the same premium payment or
supplement on the same basis, and to the same extent (in no event to exceed a
period of 12 months), as provided to other terminated employees generally under
the Company’s severance plan, to the extent permissible under applicable law,
including Section 105(h) of the Code; and

     

    (6)        
Any other benefits (other than benefits under any severance or termination pay
plan of the Company or any Affiliated Entity) that are otherwise required to be
provided to Employee or to which Employee is otherwise eligible to receive
through the date of termination under the terms of the applicable Company plan
shall be provided to Employee consistent with the terms of the applicable
Company plan (the “Other
Benefits”).

     

    (B)        
Due to Employee’s
Death or Long-Term Disability, by the Company for Cause or by Employee Other
than for Good Reason. If, during the Term, Employee’s employment is
terminated by reason of his death or Long-Term Disability, by the Company for
Cause or voluntarily by Employee for any reason other than for Good Reason, the
Company’s obligations to Employee shall be limited to the following (1) the
payment of the Accrued Obligations and (2) the timely payment or provision of
the Other Benefits. The Accrued Obligations shall be paid to Employee or his
estate or beneficiary in the event of his death, as applicable, in a lump sum in
cash within thirty (30) days of the date of termination.

     

    (C)        
Full
Settlement. Except as expressly provided in this § 7, Employee shall have
no right to receive any compensation or other benefits under this Agreement as a
result of or in connection with the termination of his employment with the
Company or for any period after such termination.

    (D)        Cessation of Payments and
Benefits. Notwithstanding any other provision of this Agreement to the
contrary, the obligation of the Company to pay or provide the Severance Benefits
and the benefits under §§ 7(A)(4) and (5) that are otherwise payable or to be
provided following termination of Employee’s employment with the Company shall
automatically and immediately terminate upon a breach by Employee of this
Agreement, including without limitation a breach of Employee’s obligations under
§ 5, other than an immaterial and inadvertent breach that is discontinued and/or
remedied (to the extent subject to cure) by Employee promptly.

     

    
      
        
        

      

      
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    § 8.
Limitation on Payments
Under Certain Circumstances.

     

    (A)        Anything
in this Agreement to the contrary notwithstanding, in the event the Accounting
Firm (as defined below) shall determine that receipt of all Payments (as defined
below) would subject Employee to the excise tax under Section 4999 of the Code,
the Accounting Firm shall determine whether to reduce any of the Payments paid
or payable pursuant to this Agreement (the “Agreement Payments”) so that
the Parachute Value (as defined below) of all Payments, in the aggregate, equals
the Safe Harbor Amount (as defined below). The Agreement Payments shall be so
reduced only if the Accounting Firm determines that Employee would have a
greater Net After-Tax Receipt (as defined below) of aggregate Payments if the
Agreement Payments were so reduced. If the Accounting Firm determines that
Employee would not have a greater Net After-Tax Receipt of aggregate Payments if
the Agreement Payments were so reduced, Employee shall receive all Agreement
Payments to which Employee is entitled hereunder.

     

    (B)        
If the Accounting Firm determines that the aggregate Agreement Payments should
be reduced so that the Parachute Value of all Payments, in the aggregate, equals
the Safe Harbor Amount, the Company shall promptly give Employee notice to that
effect and a copy of the detailed calculation thereof. All determinations made
by the Accounting Firm under this § 8 shall be binding upon the Company and
Employee and shall be made as soon as reasonably practicable and in no event
later than thirty (30) days following the date of termination. For purposes of
reducing the Agreement Payments so that the Parachute Value of all Payments, in
the aggregate, equals the Safe Harbor Amount, only amounts payable under this
Agreement (and no other Payments) shall be reduced. The reduction of the amounts
payable hereunder, if applicable, shall be made by reducing the payments and
benefits under the following sections in the following order: (1) first, any
Payments under § 7(A)(4); (2) second, any Payments under § 7(A)(5); (3) third,
any Payments under § 7(A)(2); and (4) fourth, any Payments under § 7(A)(3). All
fees and expenses of the Accounting Firm shall be borne solely by the
Company.

     

    (C)        
As a result of the uncertainty in the application of Section 4999 of the Code at
the time of the initial determination by the Accounting Firm hereunder, it is
possible that amounts will have been paid or distributed by the Company to or
for the benefit of Employee pursuant to this Agreement that should not have been
so paid or distributed (“Overpayment”) or that
additional amounts which will have not been paid or distributed by the Company
to or for the benefit of Employee pursuant to this Agreement could have been so
paid or distributed (“Underpayment”), in each case,
consistent with the calculation of the Safe Harbor Amount hereunder. In the
event that the Accounting Firm, based upon the assertion of a deficiency by the
Internal Revenue Service against either the Company or Employee that the
Accounting Firm believes has a high probability of success, determines that an
Overpayment has been made, Employee shall promptly (and in no event later than
sixty (60) days following the date on which the Overpayment is determined) pay
any such Overpayment to the Company together with interest at the applicable
federal rate provided for in Section 7872(f)(2) of the Code; provided, however, that no amount shall
be payable by Employee to the Company if and to the extent such payment would
not either reduce the amount on which Employee is subject to tax under Sections
1 and 4999 of the Code or generate a refund of such taxes. If the Accounting
Firm, based upon controlling precedent or substantial authority, determines that
an Underpayment has occurred, any such Underpayment shall be paid promptly (and
in no event later than sixty (60) days following the date on which the
Underpayment is determined) by the Company to or for the benefit of Employee
together with interest at the applicable federal rate provided for in Section
7872(f)(2) of the Code.

     

    
      
        
        

      

      
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    (D)        
To the extent requested by Employee, the Company shall cooperate with Employee
in good faith in valuing, and the Accounting Firm shall take into account the
value of, services provided or to be provided by Employee (including without
limitation Employee’s agreeing to refrain from performing services pursuant to a
covenant not to compete or similar covenant, including that set forth in § 5 of
this Agreement) before, on or after the date of a change in ownership or control
of the Company (within the meaning of Q&A-2(b) of the final regulations
under Section 280G of the Code), such that payments in respect of such services
may be considered reasonable compensation within the meaning of Q&A-9 and
Q&A-40 to Q&A-44 of the regulations under Section 280G of the Code
and/or exempt from the definition of the term “parachute payment” within the
meaning of Q&A-2(a) of the regulations under Section 280G of the Code in
accordance with Q&A-5(a) of the regulations under Section 280G of the
Code.

     

    (E)        
§ 8
Definitions. The following terms shall have the following meanings for
purposes of this § 8:

     

    “Accounting Firm” shall mean a
nationally recognized certified public accounting firm that is selected by the
Company for purposes of making the applicable determinations under § 8 and is
reasonably acceptable to Employee, which firm shall not, without Employee’s
consent, be a firm serving as accountant or auditor for the individual, entity
or group effecting the change in control or ownership.

    “Net After-Tax Receipt” shall
mean the present value (as determined in accordance with Sections
280G(b)(2)(A)(ii) and 280G(d)(4) of the Code) of a Payment net of all taxes
imposed on Employee with respect thereto under Sections 1 and 4999 of the Code
and under applicable state and local laws, determined by applying the highest
marginal rate under Section 1 of the Code and under state and local laws which
applied to Employee’s taxable income for the immediately preceding taxable year,
or such other rate(s) as the Accounting Firm determined to be likely to apply to
Employee in the relevant tax year(s).

     

    
      
        
        

      

      
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    “Parachute Value” of a Payment
means the present value as of the date of the change of control for purposes of
Section 280G of the Code of the portion of such Payment that constitutes a
“parachute payment” under Section 280G(b)(2) of the Code, as determined by the
Accounting Firm for purposes of determining whether and to what extent the
excise tax under Section 4999 of the Code will apply to such
Payment.

     

    “Payment” means any payment or
distribution in the nature of compensation (within the meaning of Section
280G(b)(2) of the Code) to or for the benefit of Employee, whether paid or
payable pursuant to this Agreement or otherwise.

     

    “Safe Harbor Amount” means (A)
3.0 times Employee’s “base amount,” within the meaning of Section 280G(b)(3) of
the Code, minus (B) $1.00.

     

    § 9.
Company
Policies.
Employee acknowledges that at all times he and the compensation he receives (or
is eligible to receive) from the Company pursuant to this Agreement or otherwise
shall be subject to the policies of the Company, including the Company’s stock
ownership guidelines and clawback or recoupment policies, as in effect from time
to time.

     

    § 10.
Capacity.
Employee represents and warrants to the Company that he has the capacity and
right to enter into this Agreement and perform all of his obligations under this
Agreement without any restriction.

     

    § 11.
Remedies. Subject
to the right of the Company and the Affiliated Companies to exercise the
remedies described in § 5 of this Agreement in any court having jurisdiction or
the right of Employee to challenge, defend or contest same in any court having
jurisdiction, all disagreements and controversies arising with respect to this
Agreement, or with respect to its application to circumstances not clearly set
forth in this Agreement, shall be settled by binding arbitration to be held, and
the award made, in Hamilton, Ohio, pursuant to the then-applicable Commercial
Arbitration Rules of the American Arbitration Association. In any such
arbitration, the arbitrators shall consist of a panel of three arbitrators,
which shall act by majority vote and which shall consist of one arbitrator
selected by the Party on one side of the issue subject to the arbitration, one
arbitrator selected by the Party on the other side of the issue, and a third
arbitrator selected by the two arbitrators so selected, who shall be either a
certified public accountant or an attorney at law licensed to practice in the
State of Ohio and who shall act as chairman of the arbitration panel; provided that, if the Party
on one side of the issue selects its arbitrator for the panel and the other
Party fails so to select its arbitrator within ten (10) business days after
being requested by the first Party to do so, then the sole arbitrator shall be
the arbitrator selected by the first Party. A decision in any such arbitration
shall apply both to the particular question submitted and to all similar
questions arising thereafter and shall be binding and conclusive upon both
Parties and shall be enforceable in any court having jurisdiction over the Party
to be charged. Each Party shall bear the cost of its own attorney’s fees.
However, if Employee prevails in a challenge to the Company’s determination as
to the basis or lack of basis for his termination or if Employee prevails on any
claim that he was discriminated against in violation of any federal, state or
local law, the Company shall reimburse Employee for any applicable filing fee
and any reasonable costs or expenses incurred in such challenge, including
reasonable attorney’s fees. All other costs and expenses of arbitration shall be
borne by the Company. All rights and remedies of each Party under this Agreement
are cumulative and in addition to all other rights and remedies that may be
available to that Party from time to time, whether under any other agreement, at
law or in equity.

    
      
         

      

      
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    § 12.
Section 409A of the
Code.

     

    (A)        
General. It is
intended that this Agreement shall comply with the provisions of Section 409A of
the Code and the Treasury regulations relating thereto, or an exemption to
Section 409A of the Code, and it shall be considered and interpreted in
accordance with such intent. Any payments that qualify for the “short-term
deferral” exception or another exception under Section 409A of the Code shall be
paid under the applicable exception. For purposes of the limitations on
nonqualified deferred compensation under Section 409A of the Code, each payment
of compensation under this Agreement shall be treated as a separate payment of
compensation for purposes of applying the Section 409A of the Code deferral
election rules and the exclusion under Section 409A of the Code for certain
short-term deferral amounts. All payments to be made upon a termination of
employment under this Agreement may only be made upon a “separation from
service” under Section 409A of the Code. Despite any contrary provision of this
Agreement, any references to “termination of employment” or the “date of
termination” (or any similar term) shall mean and refer to the date of
Employee’s “separation from service,” as that term is defined in Section 409A of
the Code and Treasury Regulation Section 1.409A-1(h). In no event may Employee
directly or indirectly designate the calendar year of any payment under this
Agreement.

     

    (B)        
Delay of
Payments. Notwithstanding any other provision of this Agreement to the
contrary, if Employee is considered a “specified employee” for purposes of
Section 409A (as determined in accordance with the methodology established by
the Company as in effect on the date of termination), any payment that
constitutes nonqualified deferred compensation within the meaning of Section
409A of the Code that is otherwise due to Employee under this Agreement during
the six-month period following his separation from service (as determined in
accordance with Section 409A of the Code) on account of his separation from
service shall be accumulated and paid to Employee on the first business day of
the seventh month following his separation from service (the “Delayed Payment Date”)
together with interest at the short-term applicable federal rate with semiannual
compounding under Section 1274(d) of the Code for the month prior to the month
in which the separation from service occurs from the date such amount would have
been paid but for this § 12(B) to the day prior to actual payment date. If
Employee dies during the Section 409A postponement period, the amounts and
entitlements delayed on account of Section 409A shall be paid to the personal
representative (with interest as provided above) of his estate on the first to
occur of the Delayed Payment Date or thirty (30) days after the date of
Employee’s death.

    
      
         

      

      
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    (C)        
In-Kind Benefits and
Reimbursements. Notwithstanding any other provision of this Agreement to
the contrary, all (1) reimbursements and (2) in-kind benefits provided under
this Agreement shall be made or provided in accordance with the requirements of
Section 409A of the Code, including, where applicable, the requirement that (a)
any reimbursement is for expenses incurred during Employee’s lifetime (or during
a shorter period of time specified in this Agreement); (b) the amount of
expenses eligible for reimbursement, or in-kind benefits provided, during a
calendar year may not affect the expenses eligible for reimbursement, or in-kind
benefits to be provided, in any other calendar year; (c) the reimbursement of an
eligible expense will be made no later than the last day of the calendar year
following the year in which the expense is incurred; and (d) the right to
reimbursement or in-kind benefits is not subject to liquidation or exchange for
another benefit.

     

    § 13.
Withholding. The
Company may withhold from any amounts payable under this Agreement such federal,
state, local or foreign taxes as shall be required to be withheld pursuant to
any applicable law or regulation.

     

    § 14.
Survival. Upon
the expiration of the Term or other termination of this Agreement, the
respective rights and obligations of the Parties shall survive such expiration
or other termination to the extent necessary to carry out the intentions of the
Parties under this Agreement. The termination of Employee’s employment by the
Company (for any reason) shall not relieve either Party of its obligations
existing at, arising as a result of, or relating to acts or omissions occurring
prior to, such termination. Without limiting the generality of the preceding
sentence, in no event shall the termination of such employment modify or affect
any obligations of Employee or rights of the Company or the Affiliated Companies
under § 5 of this Agreement, all of which shall survive the termination of such
employment.

     

    § 15.
Notices. All
notices and other communications under this Agreement to either Party shall be
in writing and shall be deemed given when (a) delivered personally to that
Party, (b) telecopied (which is confirmed) to that Party, (c) mailed by
certified mail (return receipt requested) to that Party at the address for that
Party set forth in this Agreement, or (d) delivered to Federal Express, UPS, or
any similar express delivery service for delivery the next business day to that
Party at that address.

    
      
        	
              	
                If
      to the Company: 

              	
                First
      Financial Bancorp.

              

      

    

    201 East
Fourth Street

    
      Cincinnati,
Ohio 45202

    

    
      Attention:
General Counsel

    

     

    If to
Employee: At the most recent address on file at the Company.

     

    Either
Party may change its address for notices under this Agreement by giving the
other Party written notice of such change.

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    § 16.
Severability. The
intention of the Parties is to comply fully with all rules, laws, and public
policies to the extent possible. If and to the extent that any court of
competent jurisdiction is unable to so construe any provision of this Agreement
and holds that provision to be invalid, such invalidity shall not affect the
remaining provisions of this Agreement, which shall remain in full force and
effect. With respect to any provision in this Agreement finally determined by
such a court to be invalid or unenforceable, such court shall have jurisdiction
to reform this Agreement to the extent necessary to make such provision valid
and enforceable, and, as reformed, such provision shall be binding on the
Parties.

     

    § 17.
Non-Waiver. No
failure by either Party to insist upon strict compliance with any term of this
Agreement, to exercise any option, to enforce any right, or to seek any remedy
upon any default of the other Party shall affect, or constitute a waiver of, the
other Party’s right to insist upon such strict compliance, exercise that option,
enforce that right, or seek that remedy with respect to that default or any
prior, contemporaneous, or subsequent default. No custom or practice of the
Parties at variance with any provision of this Agreement shall affect or
constitute a waiver of either Party’s right to demand strict compliance with all
provisions of this Agreement.

     

    § 18.
Complete
Agreement. This
Agreement and all documents referred to in this Agreement, all of which are
hereby incorporated herein by reference, contain the entire agreement between
the Parties and supersede all other agreements and understandings between the
Parties with respect to the subject matter of this Agreement, including the
Prior Agreement. This Agreement shall be of no force or effect unless and until
executed and delivered by both Employee and a duly authorized representative of
the Company. No alterations, additions, or other changes to this Agreement shall
be made or be binding unless made in writing and signed by both Parties. To the
extent determined necessary to comply with the Guidance on Sound Incentive
Compensation Policies issued by the Office of the Comptroller of the Currency,
the Board of Governors of the Federal Reserve System, the Federal Deposit
Insurance Corporation and the Office of Thrift Supervision on June 21, 2010, as
it may be implemented and interpreted from time to time, the Parties mutually
agree to amend the provisions of this Agreement and to cooperate in good faith
with respect thereto.

     

    § 19.
Governing
Law. This
Agreement shall be governed by and construed in accordance with the laws of the
State of Ohio applicable to contracts to be executed and performed entirely in
such state.

    § 20.
Captions. The
captions of the various sections of this Agreement are not part of the context
of this Agreement, are only guides to assist in locating those sections, and
shall be ignored in construing this Agreement.

     

    § 21.
Genders and
Numbers. Where permitted by the context, each pronoun used in this
Agreement includes the same pronoun in other genders and numbers, and each noun
used in this Agreement includes the same noun in other numbers.

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

    § 22.
Successors.
This Agreement shall be personal to Employee, and no rights or obligations of
Employee under this Agreement may be assigned or delegated by Employee to any
person. Any assignment or attempted assignment by Employee in violation of the
preceding sentence shall be null and void. Subject to the foregoing, this
Agreement shall be binding upon, inure to the benefit of, and be enforceable by
and against the heirs, personal representatives, successors, and assigns of each
Party. The Company shall require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company to assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place. As used in this
Agreement, “Company” shall mean the Company as hereinbefore defined and any
successor to its business and/or assets as aforesaid that assumes and agrees to
perform this Agreement by operation of law, or otherwise.

     

    § 23.
Counterparts.
This Agreement may be executed in multiple counterparts, each of which shall be
deemed to be an original, but all of which taken together shall constitute one
and the same Agreement.

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

    IN
WITNESS THEREOF, Employee has hereunto set his hand, and the Company has caused
these presents to be executed in its name and on its behalf, all as of the day
and year first above written.

     

    
      
        
          
            	
                    EMPLOYEE

                  	
                     
      

                  	
                    FIRST
      FINANCIAL BANCORP.

                  
	 
      	 
      	 
      	 
      
	
                    
                      /s/Claude E.
      Davis

                    

                  	 
      	
                    By: 

                  	
                    
                      /s/Murph
      Knapke

                    

                  
	
                    
                      Claude E.
      Davis

                    

                  	 
      	 
      	
                    Name: Murph
      Knapke

                  
	 
      	 
      	 
      	
                    
                      Title:  Chairman
      of the Board of Directors

                    

                  
	 
      	 
      	 
      	 
      
	
                    December 28,
      2010

                  	 
      	 
      	
                    December 23,
      2010

                  
	
                    Date

                  	 
      	 
      	
                    Date

                  

          

        

      

    

     

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

    

    AGREEMENT AND GENERAL
RELEASE

    

    First
Financial Bancorp., an Ohio corporation (the “Company”),
and its subsidiaries and affiliates (collectively, with the Company, “FFB”) and
Claude E.
Davis, Employee’s heirs, executors, administrators,
successors, and assigns (collectively referred to throughout this Agreement as
“Employee”),
agree that:

    

    1.           Last Day of
Employment. Employee’s employment with FFB will end effective
________________ (the “Severance Date”). In no
circumstance shall Employee sign this Agreement and General Release (this “Agreement”) prior to the
Severance Date, and Employee must sign and return this Agreement (if at all) no
later than ________, which is the fiftieth (50th) day following the Severance
Date.

    

    2.           General Release of All
Claims.

    

    a.    For
and in consideration of the payments and other benefits due to Employee pursuant
to Section 7 of the Employment and Non-competition Agreement entered into as of
December [●], 2010, by and between the Company and Employee (the “Employment Agreement”), and
for other good and valuable consideration, Employee knowingly and voluntarily
releases and forever discharges FFB, any and all of its parent corporations,
affiliates, subsidiaries, divisions, predecessors, insurers, successors and
assigns, and their current and former employees, attorneys, officers, directors
and agents thereof, both individually and in their business capacities, and
their employee benefit plans and programs and their administrators and
fiduciaries (collectively referred to throughout the remainder of this Agreement
as “Releasees”), of and
from any and all claims, known and unknown, asserted or unasserted, which
Employee has or may have against Releasees as of the date of execution of this
Agreement, including, but not limited to, any alleged violation of:

    

    
      	
               
      

            	
              §

            	
              Title
      VII of the Civil Rights Act of
1964;

            

    

    
      	
               
      

            	
              §

            	
              Sections
      1981 through 1988 of Title 42 of the United States
  Code;

            

    

    
      	
               
      

            	
              §

            	
              The
      Employee Retirement Income Security Act of 1974 (except for any vested
      benefits under any tax-qualified benefit
plan);

            

    

    
      	
               
      

            	
              §

            	
              The
      Immigration Reform and Control Act;

            

    

    
      	
               
      

            	
              §

            	
              The
      Americans with Disabilities Act of
1990;

            

    

    
      	
               
      

            	
              §

            	
              The
      Age Discrimination in Employment Act of
1967;

            

    

    
      	
               
      

            	
              §

            	
              The
      Worker Adjustment and Retraining Notification
  Act;

            

    

    
      	
               
      

            	
              §

            	
              The
      Fair Credit Reporting Act;

            

    

    
      	
               
      

            	
              §

            	
              The
      Family and Medical Leave Act;

            

    

    
      	
               
      

            	
              §

            	
              The
      Equal Pay Act;

            

    

    
      	
               
      

            	
              §

            	
              The
      Ohio Fair Employment Practice Law – Ohio Rev. Code Ann. § 4112.01 et
      seq.;

            

    

    
      	
               
      

            	
              §

            	
              The
      Ohio Whistleblower Protection Law – Ohio Rev. Code Ann. § 4113.51 et
      seq.;

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              §

            	
              The
      Ohio Statutory Provisions Regarding Retaliation/Discrimination for Filing
      a Worker’s Compensation Claim – Ohio Rev. Code Ann. §
  4123.90;

            

    

    
      	
               
      

            	
              §

            	
              The
      Ohio Equal Pay Law – Ohio Rev. Code Ann. § 4111.13 et
      seq.;

            

    

    
      	
               
      

            	
              §

            	
              The
      Ohio State Wage Payment and Work Hour
Laws;

            

    

    
      	
               
      

            	
              §

            	
              Any
      other federal, state or local law, rule, regulation, or
      ordinance;

            

    

    
      	
               
      

            	
              §

            	
              Any
      public policy, contract, tort, or common law;
or

            

    

    
      	
               
      

            	
              §

            	
              Any
      basis for recovering costs, fees, or other expenses including attorneys’
      fees incurred in these matters.

            

    

    

    b.
   If any claim is not subject to release, to the extent permitted by
law, Employee waives any right or ability to be a class or collective action
representative or to otherwise participate in any putative or certified class,
collective or multiparty action or proceeding based on such a claim in which FFB
or any other Releasee identified in this Agreement is a party.

    

    c.  
 FFB and Employee acknowledge that this Agreement does not limit either
party’s right, where applicable, to file or participate in an investigative
proceeding of any federal, state or local governmental agency. To the extent
permitted by law, Employee agrees that if an administrative claim is made to, or
other proceedings initiated with, a federal, state or local governmental agency,
Employee shall not be entitled to recover any individual monetary relief,
remuneration, damages, compensation or other individual remedies of any type
whatsoever from Releasees.

    

    d.   
Notwithstanding anything else herein to the contrary, the release contained in
this Agreement shall not affect, and Employee does not waive: (i) rights to
indemnification Employee may have under (A) applicable law, (B) any other
agreement between Employee and any Releasee and (C) as an insured under any
director’s and officer’s liability insurance policy now or previously in force;
(ii) any right Employee may have to obtain contribution in the event of the
entry of judgment against Employee as a result of any act or failure to act for
which both Employee and FFB are jointly responsible; (iii) Employee’s rights to
vested benefits and payments under any equity incentive plan or award agreement
or under any retirement plan, welfare benefit plan or deferred compensation
plan, all of which shall remain in effect in accordance with the terms and
provisions of such plan or agreement; (iv) Employee’s rights as a stockholder of
the Company; or (v) any unsatisfied obligations under Section 7 of the
Employment Agreement or rights under Section 8 of the Employment
Agreement.

    

    3.           No Consideration Absent
Execution of this Agreement. Employee understands and agrees that
Employee would not receive the monies and/or benefits under Section 7 of the
Employment Agreement except for Employee’s execution of this Agreement and the
fulfillment of the obligations and promises contained under Section 5 of the
Employment Agreement.

     

    4.           
Acknowledgments and
Affirmations.

    

    a.    
Employee affirms that Employee has complied with all laws and regulations
applicable to FFB’s operations.

    
      
         

      

      
        A-2

        
          

        

      

      
         

      

    

    

    b.    
Employee affirms that Employee has not filed, caused to be filed, or presently
is not a party to any claim against FFB.

     

    c.   
 Employee affirms that Employee has been paid and/or has received all
compensation, wages, bonuses, commissions, and/or benefits to which Employee may
be entitled.

     

    d.   
Employee affirms that Employee has been granted any leave to which Employee was
entitled under the Family and Medical Leave Act or related state or local leave
or disability accommodation laws.

     

    e.
    Employee affirms that Employee has no known workplace
injuries or occupational diseases.

    

    f.    Employee
affirms that Employee has not divulged any of FFB’s Confidential Information (as
defined in the Employment Agreement) and will continue to maintain the
confidentiality of such information consistent with statute or common law, FFB’s
policies and/or Employee’s agreement(s) with FFB.

    

    g.    Employee
affirms that he has not violated and will continue to comply with the
non-competition, non-solicitation and non-disparagement covenants set forth in
the Employment Agreement.

    

    h.
   Employee affirms that Employee has not been retaliated against for
reporting any allegations of wrongdoing by FFB or its officers, including any
allegations of corporate fraud.

    

    i.     Employee
affirms that all of FFB’s decisions regarding Employee’s pay and benefits
through the date of Employee’s Severance Date were not discriminatory based on
age, disability, race, color, sex, religion, national origin or any other
classification protected by law.

    

    j.     Employee
affirms that any stock options granted to Employee under any FFB option program
that have not vested by Employee’s Severance Date shall be considered lapsed,
and be forever unexercisable by Employee unless otherwise provided by the terms
of the applicable plan document for those options. At Employee’s Severance Date,
any vested stock options will be treated in accordance with the terms of the
applicable plan document for those options.

    

    5.          
Reimbursement of
Expenses. FFB agrees to reimburse Employee in accordance with FFB policy
for reasonable and ordinary expenses that Employee incurred in connection with
the services that Employee rendered on behalf of FFB prior to Employee’s
Severance Date. Employee agrees to file an expense report reflecting all such
outstanding expenses no later than ten (10) calendar days following Employee’s
Severance Date.

    
      
         

      

      
        A-3

        
          

        

      

      
         

      

    

    

    6.           
Return of Property and
Confidential Information.

     

    a.   
Employee affirms that Employee has returned all of FFB’s property, documents,
and/or any Confidential Information in Employee’s possession or control on or
before Employee’s Severance Date, including but not limited to Employee’s FFB
credit card(s), Employee’s FFB identification card, FFB branch or office keys,
and all FFB files, books, documents and records (whether in paper or electronic
form).

     

    b.  
 Employee acknowledges and agrees that Employee is in possession of all of
Employee’s property that Employee had at FFB’s premises and that FFB is not in
possession of any of Employee’s property.

    

    7.           Cooperation. Employee agrees to fully
cooperate in and assist with any litigation or federal, state or local
governmental agency proceedings involving FFB for which Employee’s testimony or
cooperation is requested by FFB.

    

    8.          
No Admission of
Wrongdoing. The Parties agree that neither this Agreement nor the
furnishing of the consideration for this Agreement shall be deemed or construed
at any time for any purpose as an admission by Releasees of wrongdoing or
evidence of any liability or unlawful conduct of any kind.

    

    9.          Amendment. This
Agreement may not be modified, altered or changed except in writing and signed
by both Parties wherein specific reference is made to this Agreement.

    

    10.        Agreement Not
Assignable. Neither this Agreement nor any right or interest hereunder
shall be assignable by Employee or any beneficiary or legal representative of
Employee without the prior written consent of an officer of FFB.

    

    11.         Governing Law. This
Agreement shall be governed by and construed in accordance with the laws of the
State of Ohio without regard to its conflict of laws provisions. Any controversy
or claims arising out of or relating to this Agreement shall settled by binding
arbitration in accordance with Section 11 of the Employment
Agreement.

    

    12.        
Severability.
Should any provision of this Agreement be declared illegal or unenforceable by
any court of competent jurisdiction and cannot be modified to be enforceable,
excluding the general release language, such provision shall immediately become
null and void, leaving the remainder of this Agreement in full force and
effect.

    

    EMPLOYEE
IS ADVISED THAT EMPLOYEE HAS UP TO TWENTY-ONE (21) CALENDAR DAYS TO CONSIDER
THIS AGREEMENT AND GENERAL RELEASE. EMPLOYEE ALSO IS ADVISED TO CONSULT WITH AN
ATTORNEY PRIOR TO EMPLOYEE’S SIGNING OF THIS AGREEMENT AND GENERAL
RELEASE.

    
      
         

      

      
        A-4

        
          

        

      

      
         

      

    

    

    EMPLOYEE MAY REVOKE THIS AGREEMENT
AND GENERAL RELEASE FOR A PERIOD OF SEVEN (7) CALENDAR DAYS FOLLOWING THE DAY
EMPLOYEE SIGNS THIS AGREEMENT AND GENERAL RELEASE. ANY REVOCATION WITHIN THIS
PERIOD MUST BE SUBMITTED, IN WRITING, TO ____________ [IDENTIFY COMPANY
REPRESENTATIVE] AND STATE, “I HEREBY REVOKE MY ACCEPTANCE OF OUR AGREEMENT AND
GENERAL RELEASE.”  THE REVOCATION MUST BE PERSONALLY DELIVERED TO
_________________ [IDENTIFY COMPANY REPRESENTATIVE] OR HIS/HER DESIGNEE, OR MAILED TO
____________________ [IDENTIFY COMPANY REPRESENTATIVE] AND BE POSTMARKED WITHIN SEVEN (7)
CALENDAR DAYS AFTER EMPLOYEE SIGNS THIS AGREEMENT AND GENERAL
RELEASE.

     

    EMPLOYEE
AGREES THAT ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS AGREEMENT AND
GENERAL RELEASE DO NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL
UP-TO-TWENTY-ONE (21) CALENDAR-DAY CONSIDERATION PERIOD.

     

    EMPLOYEE
FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS AGREEMENT
AND GENERAL RELEASE INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS EMPLOYEE
HAS OR MIGHT HAVE AGAINST RELEASEES.

     

    The
parties knowingly and voluntarily sign this Agreement and General Release as of
the date(s) set forth below:

    

    
      
        	
                EMPLOYEE

              	 
      	
                FIRST
      FINANCIAL BANCORP.

              
	 
      	 
      	 
      	 
      
	 
      	 
      	
                By:

              	 
      
	
                
                  Claude E.
      Davis

                

              	 
      	 
      	
                [Name
      of Person Signing]

              
	 
      	 
      	 
      	
                [Title
      of Person Signing]

              
	 
      	 
      	 
      	 
      
	
                Date:

              	 
      	 
      	
                Date:

              	 
      

      

    

     

    
      
         

      

      
        A-5

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