Document:

EXHIBIT
10.4

Table of Contents

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 CUSTODIAL UNDERTAKING IN CONNECTION WITH DERIVATIVES
 TRANSACTIONS

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 1. INTENTION OF THE PARTIES; DEFINITIONS

 	
  

 	
 1

 
	
  

 	
 1.1

 	
 Intention
 of the Parties

 	
  

 	
 1

 
	
  

 	
 1.2

 	
 Definitions

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2. WHAT
 BANK IS REQUIRED TO DO

 	
  

 	
 3

 
	
  

 	
 2.1

 	
 Establish and Maintain Accounts

 	
  

 	
 3

 
	
  

 	
 2.2

 	
 Settlement of Specific Repurchase Transactions

 	
  

 	
 3

 
	
  

 	
 2.3

 	
 Income and Voting

 	
  

 	
 4

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 3. BANK’S OBLIGATION TO HOLD SECURITIES

 	
  

 	
 5

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 4. STATEMENTS

 	
  

 	
 5

 
	
  

 	
  

 	
  

 	
  

 
	
 5. DUTY OF CARE AND INSTRUCTIONS

 	
  

 	
 5

 
	
  

 	
 5.1

 	
 Care
 of Property

 	
  

 	
 5

 
	
  

 	
 5.2

 	
 Reliance
 on Instructions

 	
  

 	
 6

 
	
  

 	
 5.3

 	
 Pricing of Securities

 	
  

 	
 7

 
	
  

 	
 5.4

 	
 Transfers and Other Obligations

 	
  

 	
 7

 
	
  

 	
 5.5

 	
 Electronic
 Access

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 6. FEES AND EXPENSES

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 
	
 7. INDEMNIFICATION

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 
	
 8. EVENT OF DEFAULT; CONTINUING DISPUTES; EFFECT OF NOTICE OF
 LEVY, ETC. 

 	
  

 	
 10

 
	
  

 	
 8.1

 	
 Event of Default

 	
  

 	
 10

 
	
  

 	
 8.2

 	
 Continuing Disputes

 	
  

 	
 10

 
	
  

 	
 8.3

 	
 Effect of Notice Of Levy, Etc.

 	
  

 	
 11

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 9. FUNDS
 TRANSFER

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 
	
 10. REPRESENTATIONS AND WARRANTIES

 	
  

 	
 12

 
	
  

 	
 10.1

 	
 Buyer’s Representations and Warranties

 	
  

 	
 12

 
	
  

 	
 10.2

 	
 Seller’s Representations and Warranties

 	
  

 	
 13

 
	
  

 	
 10.3

 	
 Bank’s Representations and Warranties

 	
  

 	
 14

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 12. TERMINATION

 	
  

 	
 14

 
	
  

 	
  

 	
  

 	
  

 
	
 12. SUBCUSTODIANS
 SECURITIES DEPOSITORIES, AND OTHER AGENTS

 	
  

 	
 14

 
	
  

 	
 12.1

 	
 Appointment
 of Subcustodians; Use of Securities Depositories

 	
  

 	
 14

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 13. MISCELLANEOUS

 	
  

 	
 15

 
	
  

 	
 13.1

 	
 Entire Agreement; Modification; Amendment

 	
  

 	
 15

 
	
  

 	
 13.2

 	
 Severability; Waiver; Survival

 	
  

 	
 15

 
	
  

 	
 13.3

 	
 Interpretation

 	
  

 	
 15

 
	
  

 	
 13.4

 	
 Assignment

 	
  

 	
 16

 
	
  

 	
 13.5

 	
 Counterparts

 	
  

 	
 16

 
	
  

 	
 13.6

 	
 Notices

 	
  

 	
 16

 
	
  

 	
 13.7

 	
 Force Majeure

 	
  

 	
 16

 
	
  

 	
 13.8

 	
 Governing Law; Jurisdiction

 	
  

 	
 16

 
	
  

 	
 13.9

 	
 USA PATRIOT Act Disclosure

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SCHEDULE
 1

 	
  

 	
 20

 
	
  

 	
  

 	
  

 
	
 SCHEDULE 2

 	
  

 	
 21

 
	
  

 	
  

 	
  

 
	
 SCHEDULE 3

 	
  

 	
 25

 
	
 Electronic Access

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 EXHIBIT 1 TO SCHEDULE 3

 	
  

 	
 27

 
	
  

 	
  

 	
  

 
	
 SCHEDULE 4

 	
  

 	
 28

 

CUSTODIAL UNDERTAKING IN CONNECTION WITH DERIVATIVES TRANSACTIONS

          This
Custodial Undertaking in connection with Derivatives Transactions (the
“Agreement”) is made and entered into as of the date set forth below by and
among each of the funds set forth on Schedule A hereto (each, a “Fund”),
(“Counterparty”) and JPMorgan Chase Bank, N.A. (“Bank”).

	
  

 	
  

 
	
1.

 	
INTENTION OF THE PARTIES; DEFINITIONS

 
	
  

 
	
1.1

 	
Intention of the Parties

 

          Each
Fund and Counterparty have entered into an ISDA Master Agreement and Credit
Support Annex (the “Master Agreement”) and have requested that Bank undertake
certain agency and custodial functions in connection with the Master Agreement
pursuant to the terms hereof. Bank has agreed to act as agent
and custodian for Counterparty and each Fund in connection with the Master
Agreement pursuant to the terms hereof. The parties hereto all understand, acknowledge and agree that for ease of
administration this document is being executed with respect to each Fund.
However, it is the intention of each Fund, Counterparty and Bank that this
Agreement be treated as if it were separate Agreements, each entered into by a
Fund, Counterparty and Bank. In consideration of the mutual promises set forth herein and intending
to be legally bound hereby, the parties hereto agree to the terms of this
Agreement.

	
  

 	
  

 
	
1.2

 	
Definitions

 

          As
used herein, the following terms have the meaning hereinafter stated. 

          “Business
Day” means any day, from Monday through Friday, on which Bank’s offices in
New York, New York are open to transact business.

          “Clearing
Corporation” means the Federal Reserve Bank of New York, The
Depository Trust and Clearing Corporation, the Government Securities Clearing
Corporation or any other central securities depository or clearing agency which
it is or may become standard market practice to use for the comparison and
settlement of securities trades.

          “Collateral” means Debt Securities,
Equity Securities and cash provided by Counterparty under the Master Agreement
and held by Bank for the benefit of Fund; provided, that if any new or different Security shall be exchanged for
any Security by recapitalization, merger, consolidation or other corporate
action, such new or different Security shall, effective upon such exchange, be
deemed to become Collateral, in substitution for the former Security for which
such exchange is made. 

          “Collateral
Account” means, collectively, a cash account for cash and a custody account for
securities and other property established by Bank in the name of Counterparty
and for the benefit of Fund.

          “Collateral Deficit” means the amount by which the aggregate
Collateral Value of the Collateral held in the Collateral Account with respect
to a Derivatives Transaction is less than the amount of Collateral required
with respect to such Derivatives Transaction.

          “Collateral Excess” means the amount by which the aggregate
Collateral Value of the Collateral held in the Collateral Account with respect
to a Derivatives Transaction shall exceed the amount of Collateral required
with respect to such Derivatives Transaction.

          “Collateral
Percentage” means the percentage as is specified on Schedule 1 hereto. Unless
otherwise specified on Schedule 1 hereto, the Collateral Percentage for cash
shall be 100%.

          “Collateral
Value” means with respect to any Derivatives Transaction, the amount obtained
by 

1

applying the applicable Collateral Percentage to the
Market Value of each Security. The Collateral Value of Securities shall equal
or exceed the required Collateral Value at the times calculated by Bank
pursuant to this Agreement.

          “Counterparty’s
Account” means, collectively, a cash account for cash and a custody account for
securities and other property established by Bank for the benefit of
Counterparty.

          “Debt
Securities” mean debt obligations issued or guaranteed directly or indirectly by
the United States government or any agency, instrumentality or establishment
thereof (including, without limitation, government-sponsored enterprises and
entities the obligations of which are registered in the form of an entry on the
records of the Federal Reserve Bank of New York) or such other securities or
property identified on Schedule 1 hereto. 

          “Derivatives
Transaction” means a transaction under the Master Agreement.

          “Equity Securities”
mean stock or similar
securities; or any securities convertible, with or without consideration, into
such securities; or carrying any warrants or rights to subscribe to or purchase
such securities; or any such warrants or rights; or any other “equity security”
within the meaning of Section 3(a) of the Exchange Act and the rules
thereunder; in all cases provided that any such securities, warrants or rights
are also described on Schedule 1 hereto. 

          “Event
of Default” means an Event of Default on the part of Counterparty or Fund under
the Master Agreement.

          “Exchange Act” means the Securities Exchange Act of 1934,
as amended, and all rules and regulations promulgated thereunder.

          “Income” means with respect to
any Security at any time, any principal thereof then payable and all interest,
dividends or other distributions thereon.

          “International
Security” means any
security, financial instrument, deposit or currency as are listed on Schedule 1
that is capable of being cleared through a clearing facility outside of the
United States or is issued by an issuer organized under the laws of a
jurisdiction other than the United States.

          “Market
Value” means the most recently
available closing bid price (usually from the previous Business Day) for the
particular Security as made available to Bank by a recognized pricing service
which Bank uses for pricing such Security, plus, with respect to debt
Securities, any accrued interest on such Securities (to the extent not
reflected in such pricing). If no price is available, Bank shall be authorized
to price any Security by contacting any dealer designated as a “primary dealer”
by the Federal Reserve Bank of New York and relying upon any price quoted by
such “primary dealer” as if it were quoted by a recognized pricing service or
Bank may price such Security in accordance with the methodology utilized by
Bank for such purpose in the ordinary course of its business. Notwithstanding
the foregoing, cash shall be valued at face value.

          “Securities” mean cash, Debt Securities and Equity Securities. 

          “Securities Act” means the Securities Act of 1933, as
amended, and all rules and regulations promulgated thereunder.

          “Tax” means all present and future taxes, levies, imposts or duties
(including value added taxes and stamp duties) whatsoever and wheresoever
imposed (including any fines, penalties or interest on or in respect of any of
the foregoing).

2

Any references to time shall mean the time in effect in
New York, New York. All provisions in this Agreement for the transfer, payment
or receipt of funds or cash shall mean transfer of, payment in, or receipt of
United States dollars in immediately available funds.

	
  

 	
  

 
	
2.

 	
WHAT BANK IS REQUIRED TO DO

 

	
  

 	
  

 
	
2.1

 	
Establish and Maintain Accounts

 

          (a)
Each of Counterparty and Fund hereby appoints Bank as custodian of all
Securities at any time delivered to, and accepted by, Bank on its behalf in
connection with this Agreement and as its agent to provide
collateral management services in connection with Derivatives Transactions as specified in this
Agreement. Bank hereby accepts appointment as custodian and agent and agrees to
establish and maintain the Collateral Account and Counterparty’s Account as
provided hereunder.

          (b)
Bank hereby acknowledges that Bank holds the Collateral Account and all
securities, cash or other property from time to time deposited in the
Collateral Account, as bailee and securities intermediary on Fund’s behalf,
subject to this Agreement. Bank shall separate all securities and other
property in the Collateral Account from the assets of Bank or other persons in
its possession by appropriate identification on the books and records of Bank.
Bank hereby waives any security interest, lien or right of setoff against the
Collateral Account and the property therein.

          (c)
Bank and Fund intend that the receipt and maintenance by Bank of property in
the Collateral Account and property received by Bank from Fund in connection
with this Agreement until credited to the Collateral Account shall constitute a
bailment under the laws of the State of New York subject to this Agreement and
not a debtor-creditor relationship. With respect to cash, Bank and Fund intend
to create a special deposit account in favor of Fund. Bank shall not pay any
interest on any cash held at any time in the Collateral Account. The parties
intend that: (i) Fund’s custody account shall be a “securities account”, (ii)
Bank shall be a “securities intermediary” and (iii) all property in the
Collateral Account, other than cash, shall be a “financial asset” and
“investment property” (as such terms are defined in revised Articles 8 and 9 of
the Uniform Commercial Code as the same may be (or deemed to be) in effect
pursuant to applicable law or regulation). The parties acknowledge that Bank is
a commercial bank acting as custodian for Fund as a customer in connection with
the securities contracts contemplated by this Agreement, and therefore, Fund is
a “financial institution” within the meaning of Section 101 of the federal
Bankruptcy Code.

          (d)
All property from time to time in Counterparty’s Account shall be owned and
controlled solely by Counterparty, and Bank shall follow only Counterparty’s
instructions with respect to Counterparty’s Account. All property from time to
time in the Collateral Account shall be pledged by Counterparty for the benefit
of the Fund. Bank shall follow the instructions of the Fund with respect to the
required amount of Collateral in the Collateral Account and in connection with
an Event of Default with respect to the Counterparty. The provisions of this
Agreement set forth circumstances in which Counterparty may give Bank
instructions with respect to the transfer of Securities in the Collateral
Account, and Fund hereby instructs Bank to follow such instructions of
Counterparty in accordance with the provisions of this Agreement.

	
  

 	
  

 
	
2.2

 	
Settlement of Specific Derivatives Transactions

 

          (a)
Upon receipt of instructions from Counterparty in connection with a Derivatives
Transaction specifying the required Collateral with respect to such Derivatives
Transaction, provided such instructions are received by Bank by 1 p.m. on a
business day, Bank shall transfer from Counterparty’s Account to the Collateral
Account on such business day Collateral in an amount sufficient equal to or
greater than the 

3

required Collateral Value. Upon the termination of such
Derivatives Transaction, with further instructions from Fund, Bank shall,
provided such instructions are received by Bank by 1 p.m. on a business day,
transfer the Collateral from the Collateral Account to Counterparty’s Account
on such business day. 

          (b)
Bank shall be responsible for verifying that all Collateral are Eligible
Securities.

          (c)
If instructions are not timely received by Bank from Counterparty with respect
to specific Collateral which is to be transferred from Counterparty’s Account
to the Collateral Account in connection with a Derivatives Transaction, Bank
may transfer in Bank’s sole discretion any Securities with a Collateral Value
equal to or greater than the amount of required Collateral.

          (d)
Notwithstanding anything to the contrary in this Agreement, it is expressly
agreed and acknowledged by Fund and Counterparty that Bank is not guaranteeing
performance of or assuming any liability for the obligations of Fund or
Counterparty hereunder nor is it assuming any credit risk associated with
Derivatives Transactions, which liabilities and risks are the responsibility of
Fund and Counterparty; further, it is expressly agreed that Bank is not
undertaking to make credit available to Fund or Counterparty to enable it to complete
Derivatives Transactions. Notwithstanding anything in this Agreement to the
contrary, Bank shall not be obligated to transfer from Counterparty’s Account
to the Collateral Account any cash or securities which it has a right not to
transfer pursuant to any agreement between Counterparty and Bank.

          (e)
Counterparty may substitute other Securities for any Collateral without notice
to Fund provided that the Collateral in the Collateral Account after the
substitution have a Collateral Value equal to or greater than the amount of
required Collateral. 

          (f)
With respect to any
Derivatives Transaction, Bank shall not release any Securities in the
Collateral Account to Counterparty except that Counterparty shall be permitted
to substitute Securities pursuant to Section 2.2(e) of this Agreement and Fund
may instruct Bank to transfer and upon such instruction Bank may transfer
Securities having a Margin Value equal to the Collateral Excess to
Counterparty. In the event the Collateral Value of the Securities in the
Collateral Account is less than the required Collateral Value, Bank shall
provide Counterparty with notice of such deficit. On the date of any such
notice, Counterparty shall provide Bank with additional Collateral having a
Collateral Value equal to such Collateral Deficit, so that Bank can transfer
such additional Collateral to the Collateral Account by the end of the day. If
Counterparty fails to transfer an appropriate amount of additional Collateral
on the date of notice of a Collateral Deficit, Bank shall notify Fund and
Counterparty and await further instructions from Fund.

          (g)
Counterparty and Fund agree that in effecting Derivatives Transactions, Bank’s
transfers between Counterparty’s Account and the Collateral Account, including
without limitation, substitutions, are intended to be, and shall be deemed to
be, simultaneous.

          (h)
Fund and Counterparty agree and acknowledge that the amounts and values of cash
and Securities to be transferred by Bank in accordance with the provisions of
this Agreement may differ from those required in accordance with the provisions
of the Master Agreement, and Bank shall have no liability in respect of any
such differences. Counterparty and Fund shall in all events remain obligated to
each other pursuant to the terms of the Master Agreement.

	
  

 	
  

 
	
2.3

 	
Income and Voting

 

          (a)
Bank shall credit to Counterparty’s Account all Income paid by or on behalf of
issuers in respect of Collateral in the event that any such amounts are
received by Bank. Bank shall be entitled to withhold taxes or other levies, if
any, on Income received by Bank prior to crediting it to Counterparty’s 

4

Account
or the Collateral Account, as applicable. Counterparty and Fund hereby
acknowledge that all payments of Income are subject to the rules and procedures
of the appropriate Clearing Corporation.

          (b)
Fund agrees that Counterparty shall retain all rights to vote, or to provide
any consent or to take any similar action with respect to Collateral in the
event that the record date or deadline for such vote, consent or other action
falls during the term of a Derivatives Transaction.

          (c)
Notwithstanding the provisions of Sections 2.3(a) and 2.3(b), in the event Bank
receives a written notice from Fund of an Event of Default by Counterparty,
Bank shall credit all Income thereafter received by Bank to the Collateral
Account, and if applicable, Fund shall have the exclusive right to vote,
provide consent or take any similar action with respect to Collateral for which
the record date or deadline for such vote, consent or other action falls on or
after the date that written notice of an Event of Default is received by Bank.

	
  

 	
  

 
	
3.

 	
BANK’S OBLIGATION TO HOLD SECURITIES

 

          Counterparty,
Fund and Bank agree that the Securities in the Collateral Account from time to
time will be held for Fund by Bank as bailee and securities intermediary on
Fund’s behalf, that Bank will follow Fund’s instructions directing transfer
with respect to any Securities in the Collateral Account and that in no event
shall any consent of Counterparty be required for the taking of any such action
by Bank. Fund hereby covenants, for the benefit of Counterparty, that Fund will
not instruct Bank to deliver any Collateral to any person other than
Counterparty until the date, if any, when an Event of Default shall have
occurred as to which Counterparty is the defaulting party. The foregoing covenant
is for the benefit of Counterparty only and shall in no way be deemed to
constitute a limitation on Fund’s right at any time to instruct Bank with
respect to the transfer of Securities or on Bank’s obligation to act upon such
instructions.

	
  

 	
  

 
	
4.

 	
STATEMENTS 

 

          Bank
shall send to Counterparty and Fund a statement describing the Collateral held
in the Collateral Account as of the close of each Business Day. The statement
shall be sent by the close of the Business Day following the date to which such
statement applies. The statement shall include the Market Value of such
Collateral as of the date to which the statement applies. No statement will be
sent with respect to a Business Day on which there are no Collateral in the Collateral
Account as of the close of the Business Day. Fund and Counterparty shall
promptly review all such statements and shall promptly advise Bank of any
error, omission, or inaccuracy in the Collateral positions reported. Bank shall
undertake to correct any errors, failures, or omissions that are reported to
Bank by Fund or Counterparty to the extent possible. Any such corrections shall
be reflected on subsequent statements.

	
  

 	
  

 
	
5.

 	
DUTY OF CARE AND INSTRUCTIONS

 

	
  

 	
  

 
	
5.1

 	
Care of Property

 

          Bank
will use reasonable care in performing its obligations under this Agreement.
Bank will not be in violation of this Agreement with respect to any matter as
to which it has satisfied its obligation of reasonable care. Notwithstanding anything to the contrary in this
Agreement, Bank shall not be liable for any costs, expenses, damages,
liabilities or claims (collectively, “Damages”), resulting from its action or
omission to act in connection with this Agreement, except to the extent that
such Damages result from the negligence, bad faith or willful misconduct of
Bank. In the case of loss of property in Fund’s or 

5

Counterparty’s Account caused by Bank’s negligence, bad
faith or willful misconduct, Bank’s liability for lost property shall be
limited to the Market Value thereof at the date of the discovery of such loss. Notwithstanding anything to the contrary in
this Agreement, under no circumstances will Bank be liable for any indirect,
incidental, consequential or special damages (including, without limitation,
lost profits) of any form incurred by any person or entity, whether or not
foreseeable and regardless of the type of action in which such a claim may be
brought, with respect to the accounts or Bank’s performance under this
Agreement. Bank, at its option, may insure
itself against loss from any cause including the risk of loss, damage,
destruction or misdelivery but shall be under no obligation to obtain such
insurance directly for the benefit of either Counterparty or Fund. In matters
concerning or relating to this Agreement, Bank shall not be responsible for
compliance with any statute or regulation regarding the establishment or
maintenance of margin credit, including but not limited to Regulations T or X
of the Board of Governors of the Federal Reserve System or with any rules or
regulations of the Office of the Controller of the Currency. Fund and
Counterparty agree and acknowledge that Bank is not guaranteeing, performing or
assuming any liability for the acts or obligations of Fund or Counterparty.
Bank shall not have any duty to require that any cash, securities or other
property be delivered to it or to determine that the amount and form of
property deposited in the accounts comply with any applicable requirements
other than as specified in this Agreement.

	
  

 	
  

 
	
5.2

 	
Reliance on Instructions

 

          (a)
Bank, at any time,
without any resulting liability to it, may act hereunder in reliance upon any
instructions or notices Bank believes to be genuine; provided, however, that
all instructions and notices to Bank shall be by a signed writing (via fax or
otherwise), by any authorized means of electronic communication or by oral
communication. Instructions to Bank from Counterparty may also be given in the
manner specified in the Clearance or Custody Agreement, as applicable, between
Bank and Counterparty. Nothing in this Section 5.2 shall restrict Bank’s right
to confirm payment orders and/or institute any other reasonable security
procedures to verify payment orders or other instructions pursuant to Section 9
of this Agreement.

          (b)
Until written notice to the contrary is given to another party to this
Agreement by Fund and such other party has had a reasonable time to amend its
records, such other party shall be entitled to act on the belief that the
persons listed on Schedule 2 hereto (whether or not any such person is an
officer or employee of Fund) are authorized to act on behalf of Fund, and that
any one of them has authority to transfer Securities, give notices and
otherwise act under this Agreement on behalf of Fund. In addition, a party
shall be entitled to assume that any person whom it in good faith believes is
authorized to act on behalf of Fund is authorized to act on behalf of Fund and
has authority to transfer Securities, give notices and otherwise act under this
Agreement on behalf of Fund.

          (c)
Fund and Counterparty each acknowledges and agrees that
E-mail is not a secure or reliable method of communication and that Bank does
not recommend the use of E-mail or telephone for the purpose of sending
instructions. 

                    (i)
Fund and Counterparty agree that any instructions given to
Bank by telephone shall promptly thereafter be confirmed in writing (which,
without limitation, may be transmitted via fax or electronically) by an
Authorized Person (which confirmation may bear the facsimile signature of such
person). Bank is authorized to follow such instructions notwithstanding the
failure of an Authorized Person to provide such confirmation in writing or the
failure of such confirmation to conform to the telephone instructions received,
such action shall not of itself constitute negligence Bank, and Bank shall be
indemnified by Fund and Counterparty accordingly.

                    (ii)
Without limitation of any other right hereunder of Bank
to rely on the authenticity 

6

of any instruction, where Fund or
Counterparty choose to provide instructions to Bank by telephone or E-mail,
Bank may rely on the instructions as set out in this Agreement and, in addition
to Bank’s protections set
out in this Agreement, Fund and Counterparty hereby irrevocably and
unconditionally agree not to hold Bank liable for, and to indemnify Bank, its
affiliates and their respective directors, officers or employees against, and
hold each of them harmless from all actions, proceedings, claims, demands,
losses, damages, liabilities, calls, assessments, costs, charges, expenses,
fines, penalties, taxes and other matters that may result from: 

                              (A)
any interception or
interference with any instruction by E-mail;

                              
(B) (subject to sections
(ii) and (iii) above) any instruction by E-mail or telephone sent or made by a
person not authorized to send such instruction; or

                              
(C) any delay in the
receipt of, or failure to receive any instruction given by E-mail, or failure
to detect the receipt of any such instruction.

          (d)
All transfers of cash from Fund to Bank shall be made to the appropriate
account listed on Schedule 2 hereto, unless otherwise specified in a notice to
Fund by Bank. All transfers of cash from Bank to Fund shall be made to the
appropriate account listed on Schedule 2 hereto, until otherwise specified in a
written notice to Bank by Fund with Bank having had a reasonable time to amend
its records.

	
  

 	
  

 
	
5.3

 	
Pricing of Securities

 

          Bank
may rely upon a recognized pricing service (or its equivalent as provided in
the definition of Market Value) or a recognized credit rating service in
determining the Market Value or credit rating of the Securities, as applicable,
and shall in no circumstances be liable for any errors made by such service.

          In
performing such services Counterparty and Fund acknowledge and agree that: (a)
Bank will be utilizing information sources on an automated and non-verified
basis (and further that Bank will not verify any such information prior to its
being utilized for the purposes of determining the collateral to move, if any); (b) certain information utilized by Bank
(“static information”) is updated by reference to information sources and may
only be updated periodically (and further that Bank will not update static
information prior to its being utilized for the purposes of determining the collateral to move, if any);
(c) Bank has no obligation to verify any information received from any
information source used by it with a secondary source; and (d) information
about the level of collateral required by a Fund and any eligibility criteria
required by it shall be based solely on information provided by that Fund (and
Bank has no responsibility for ensuring disclosure of that information by any
Fund). Fund and Counterparty further acknowledge and agree that Bank’s
obligation to provide such services shall be delayed or incapable of completion
in certain circumstances and Bank, under such circumstances, shall be under no
obligation to complete any collateral movements.

	
  

 	
  

 
	
5.4

 	
Transfers and Other Obligations

 

          (a)
All credits, debits or transfers shall be deemed to have been completed at such
time as recorded on Bank’s books.

          (b)
Bank shall have no duties or obligations whatsoever except such duties and
obligations as are specifically set forth in this Agreement, and no covenant or
obligation shall be implied in this Agreement against Bank. Bank shall have no
discretion whatsoever with respect to the management, disposition or investment
of the Collateral Account or Counterparty’s Account and is not a fiduciary to
Fund or Counterparty.

          (c)
Transfer of Securities to Bank hereunder may be accomplished by crediting a
proprietary or 

7

pledgee account of Bank with a Clearing Corporation or
by delivery of physical certificates to Bank in negotiable form. Counterparty
and Fund agree that Bank’s use of a Clearing Corporation in connection with the
Derivatives Transactions contemplated under this Agreement is authorized and
shall fully comply with all terms and conditions of this Agreement regarding
Bank’s transfer and custody of such Securities. Fund and Counterparty
acknowledge and understand that all transfers of Securities by a Clearing
Corporation will be subject to the then applicable rules and procedures of such
Clearing Corporation. Bank shall not be responsible for the risk of holding
Securities through Clearing Corporations; no Clearing Corporation shall be, or
shall be deemed to be, an agent of Bank; Bank shall have no liability for the
acts or omissions of any Clearing Corporation and Bank assumes no credit risk,
including insolvency or bankruptcy risk, with respect to any such entity. Notwithstanding
anything to the contrary contained in this Agreement, Bank shall be authorized,
in its discretion, to accept a trust receipt from any securities intermediary
as a Security.

          (d)
Bank is not a party to the Master Agreement and nothing in this Agreement is intended by the Parties to affect, vary,
amend or otherwise change in any way whatsoever any provision of the Master
Agreement (including regarding default by either Fund or Counterparty or the
consequence thereof) and Bank’s responsibilities shall be governed solely by
this Agreement. Bank has not examined the Master Agreement, has no
responsibility for the content thereof and is not, and shall not be deemed to
be, on notice as to any provision thereof. Bank’s obligations hereunder shall
not be affected by, nor does Bank assume any liability under, the Master
Agreement.

          (e)
Bank shall not be deemed to have independent knowledge or notice of the
existence of an Event of Default. Bank shall be entitled to rely on Fund’s or
Counterparty’s written notice (including, without limitation, telecopy notice)
thereof and shall have no duty to inquire into the nature or validity of an
Event of Default.

          (f)
Bank may, with respect to questions of law, apply for and obtain the advice and
opinion of counsel and shall not be deemed to be negligent or have engaged in
willful misconduct in any action taken or omitted by Bank in good faith in
conformity with such advice or opinion.

          (g)
Without limiting the generality of the foregoing, Bank shall be under no
obligation to inquire into, and shall not be liable for:

                    (i)
subject to Section 2.2(b), the title, validity or genuineness of any
securities, other property or document;

                    (ii)
the legality of the purchase, sale, delivery or transfer of any securities or
other property, the propriety of the price for which the same is acquired,
sold, delivered or transferred or the enforceability of any trust receipt
received by Bank pursuant to this Agreement;

                    (iii)
the due authority to act on behalf of Fund of any person Bank in good faith
believes is authorized to act on behalf of Fund;

                    (iv)
the due authority to act on behalf of Counterparty of any person Bank in good
faith believes is authorized to act on behalf of Counterparty;

                    (v)
the due authority of Counterparty, Fund or any entities for which Fund acts to
deliver, transfer, obtain or hold any particular property pursuant to this
Agreement.

          (h)
Fund and Counterparty agree that Bank shall have no obligation to monitor
whether any Securities transferred or to be transferred hereunder derive all or
a portion of their value from changes in the value of underlying securities,
mortgages or other obligations or one or more currencies, commodities, indices
or other factors (“Derivative Securities”). Accordingly, the parties agree that
notwithstanding anything to the contrary in this Agreement, it shall be Fund’s
and Counterparty’s responsibility to ensure that

8

Securities do not include Derivative Securities unless
they have otherwise agreed. Bank shall have no liability whatsoever for any
loss, damage or expense arising out of any ineligibility of Derivative
Securities which are the subject of Derivatives Transactions.

          (i)
Bank does not in any way undertake to, and shall not have any responsibility
to, monitor or ascertain the compliance of any transactions in the Securities
with any exemptions from registration under the Securities Act of 1933, as
amended, or of any other state or federal securities laws.

          (j)
Notwithstanding anything to the contrary in this Agreement, Bank shall not be
required to buy or sell or arrange for the purchase or sale of any Securities
in connection with this Agreement or to follow any instructions other than
those directing the transfer of Securities.

          (k)
In the event the funds or Securities available in the Collateral Account or
Counterparty’s Account are inadequate to effectuate Derivatives Transactions in
accordance with Section 2 hereof, Bank shall have no obligation to perform the
functions specified in Section 2 hereof.

          (l)
Bank may, but shall not be required to record any telephone conversations
between Bank and Fund and/or Counterparty, and Fund and Counterparty hereby
consent to the recording of such conversations.

	
  

 	
  

 
	
5.5

 	
Electronic Access

 

          Access
to certain applications or products of Bank via Bank’s web site or otherwise shall
be governed by this Agreement and the terms and conditions set forth in
Schedule 4.

	
  

 	
  

 
	
6.

 	
FEES AND EXPENSES; TAXES

 

          (a)
Counterparty will pay
Bank for its services under this Agreement such fees as may be agreed upon in
writing from time to time, together with Bank’s reasonable out-of-pocket or
incidental expenses, including, but not limited to, legal fees and tax or related fees incidental to processing
charged directly or indirectly by governmental authorities, issuers, or their
agents. Invoices will be payable within thirty (30) days of the date of
the invoice. If Counterparty disputes an invoice, it shall nevertheless pay on
or before the date that payment is due such portion of the invoice as is not
subject to a bona fide dispute. Bank may deduct amounts invoiced from the
Cash Account except to the extent that Counterparty has objected to the invoice
within thirty (30) days of the date of the invoice (or such other period as the
parties may agree in writing). Without prejudice to Bank’s other rights, Bank
reserves the right to charge interest on overdue amounts from the due date
until actual payment at such rate as Bank may reasonably determine.

          (b)
Fund and Counterparty hereby acknowledge that Bank may determine in its
discretion whether it is obliged or desirable to account for any Tax in
performance of any of its duties or rights hereunder or in connection with this
Agreement and that such accounting for Tax shall be without prejudice to the
indemnity contained herein

          (c)
Counterparty and Fund agree to complete any documents that Bank may reasonably
require in connection with the performance of its duties or functions under or
contemplated by this Agreement (including, for the avoidance of doubt, any
forms relating to Tax).

	
  

 	
  

 
	
7.

 	
INDEMNIFICATION 

 

          Counterparty
and Fund hereby agree, jointly and severally, to indemnify Bank for, and hold
it

9

harmless against, any loss, liability or expense in connection
with, arising out of or in any way related to this Agreement or the Master
Agreement, or any action or omission by Bank in connection with this Agreement,
including the reasonable costs, expenses and fees of attorneys chosen by Bank
incurred in defending any claim of such liability, except that Counterparty and
Fund shall not be liable for any loss, liability or expense to the extent that
it is determined to be the direct result of acts or omissions on the part of
Bank constituting negligence, bad faith or willful misconduct. Notwithstanding
the foregoing, Bank shall be absolutely indemnified by each other party for,
and held harmless against, any loss, liability or expense (including the
reasonable costs, expenses and fees of attorneys chosen by Bank incurred in
defending any claim of such liability) incurred as a result of complying with
the instructions of Fund or Counterparty, including without limitation any such
compliance which constitutes or is alleged to constitute a violation of the
rights of any party or a violation of an injunction, stay, order or law. These
indemnification obligations shall survive the termination of any Derivatives
Transaction, the Master Agreement, this Agreement or all of them. For purposes
of this Section, “Bank” shall mean Bank, any existing or future parent company
of Bank, any existing or future direct or indirect subsidiary of such parent
company and any director, officer, employee or agent of any of the foregoing.

	
  

 	
  

 
	
8.

 	
EVENT OF DEFAULT; CONTINUING DISPUTES; EFFECT OF NOTICE OF
LEVY, ETC.

 

	
  

 	
  

 
	
8.1

 	
Event of Default

 

          (a)
If either Fund or Counterparty shall declare an Event of Default, it shall
promptly deliver a written notice of an Event of Default to Bank and to the
other party. Such notice shall identify the name of the defaulting party, the
Event of Default and the Derivatives Transactions which are the subject of such
Event of Default. Bank shall promptly notify the defaulting party of Bank’s
receipt of a written notice of an Event of Default. 

          (b)
From and after Bank’s receipt of a written notice of an Event of Default from
Fund or Counterparty, Bank is hereby instructed not to follow the instructions
of the defaulting party with respect to the non-defaulting party’s account,
Bank shall be entitled to follow the instructions of the non-defaulting party
with respect to the non-defaulting party’s account and, if the non-defaulting party
is Counterparty, Bank is hereby further instructed to follow the instructions
of Counterparty to accept into the Collateral Account cash in substitution of
any Securities therein provided that the Securities in the Collateral Account
after the substitution have a Collateral Value equal to or greater than the
required Collateral Value. Bank shall have no obligation to verify any
amount(s) owed by Counterparty to Fund pursuant to the Master Agreement.
Without any liability resulting to Bank, Bank shall be entitled to rely solely
on Counterparty’s instructions specifying the amount of cash to credit to the
Collateral Account in connection with a substitution effected in accordance
with this Section. In no event shall Bank have any duty to sell or otherwise
foreclose or enforce any lien upon or security interest in or realize the value
of any Securities pursuant to a notice of an Event of Default or Counterparty’s
or Fund’s instructions.

	
  

 	
  

 
	
8.2 

 	
Continuing Disputes

 

          In
the event of any dispute between, conflicting claims by or conflicting
instructions from any of Counterparty, Fund and any other person(s) with
respect to the Securities, cash or any other matter covered by this Agreement,
if Bank is uncertain as to its duties or rights hereunder, or if Bank, in the
opinion of its counsel, is precluded by law from acting, Bank may decline to
comply with any and all claims, demands or instructions with respect to such
Securities, cash or any other matter covered by this Agreement so long as such
dispute, conflict, uncertainty dispute or conflict or legal inability to
perform 

10

shall
continue, and Bank shall not be liable for failure to act or to comply with
such claims, demands or instructions. Bank shall be entitled to refuse to act
or comply until (a) such dispute or conflict shall have been finally determined
in a court of competent jurisdiction or settled by agreement between the
conflicting parties and Bank shall have received evidence satisfactory to it of
the same, (b) with respect to Bank’s uncertainty, Bank shall be directed in
writing by Counterparty and Fund or by a final order or judgment of a court of
competent jurisdiction, (c) Bank, in the opinion of its counsel, is permitted
by law to perform or (d) Bank shall have received security or an indemnity
satisfactory to it sufficient to hold it harmless from and against any and all
losses or damages, including counsel’s fees and expenses that it may incur by
reason of taking any action.

	
  

 	
  

 
	
8.3

 	
Effect of Notice Of Levy, Etc.

 

          (a)
Bank shall not be required to deliver or transfer cash, securities or
other property in contravention of any order, stay, judgment, levy, restraining
notice, seizure or other similar notice or restraint imposed by law or issued
or directed by a governmental agency or court, or officer thereof, asserting
jurisdiction over Bank, any existing or future parent company of Bank, any
existing or future direct or indirect subsidiary of such parent company or any
director, officer, employee or agent of any of the foregoing, which on its face
affects such cash, securities or other property. Bank shall give Fund and
Counterparty prompt notice of any such notice or order of which it is aware.

          (b)
Without limiting the generality of the foregoing, Bank shall be under no
obligation to inquire into, and shall not be liable for:

                    (i)
the title, validity or genuineness of any securities, other property or
document;

                    (ii)
the legality of the purchase, sale, delivery or transfer of any securities or
other property, the propriety of the price for which the same is acquired,
sold, delivered or transferred or the enforceability of any trust receipt
received by Bank pursuant to this Agreement;

                    (iii)
the due authority to act on behalf of Fund of any person Bank in good faith
believes is authorized to act on behalf of Fund;

                    (iv)
the due authority to act on behalf of Counterparty of any person Bank in good
faith believes is authorized to act on behalf of Counterparty;

                    (v)
the due authority of Counterparty, Fund or any entities for which Fund acts to
deliver, transfer, obtain or hold any particular property pursuant to this
Agreement;

                    (vi)
any taxes.

	
  

 	
  

 
	
9.

 	
FUNDS TRANSFER

 

          (a)
Fund requests that Bank execute payment orders issued in the name of Fund
conforming to the terms specified in the attached Schedule 2 (“Repetitive
Payment Orders”) received by Bank by telephone, facsimile or written
correspondence using the following security procedure.

                    (i)
Fund agrees that Repetitive Payment Orders will be effective as the funds
transfer instructions of Fund, whether or not authorized, if such payment
orders are verified pursuant to the security procedure provided herein or such
other security procedure that Bank or Fund may agree to.

                    (ii)
Bank will execute a Repetitive Payment Order when the payment details and/or
line number is identified to Bank. If a Repetitive Payment Order does not
conform to the terms of an authenticated line number, Bank will not execute the
Repetitive Payment Order unless it can verify the 

11

payment
order by another security procedure.

                    (iii)
Included in Schedule 2 is a list of the individuals and telephone numbers
designated by Fund to establish Repetitive Payment Orders.

                    (iv)
The failure of Bank to comply with the procedure provided herein shall not
render a payment order that is otherwise authorized under the law of agency
unauthorized.

                    (v)
Instructions from Fund to change Schedule 2 must be provided to Bank in
writing. Bank will initiate a callback to designated persons at Fund to
authenticate changes to Schedule 2 payment orders prior to implementation.

                    (vi)
If Bank is authorized by Fund to accept Repetitive Payment Orders from an
investment manager or other agent, this Section 9 shall apply equally to
instructions issued in the name of the investment manager or other agent.

          (b)
In executing or paying a payment order, Bank may rely upon the identifying
number (e.g. Fedwire routing number or account number) of any party as
instructed in the payment order. Counterparty assumes full responsibility for
any inconsistency between the name and identifying number of any party in
payment orders issued to Bank in Counterparty’s name. Fund assumes full
responsibility for any inconsistency between the name and identifying number of
any party in payment orders issued to Bank in Fund’s name.

          (c)
Bank, Fund and Counterparty agree that the procedures outlined in this Section
9 constitute a commercially reasonable security procedure.

	
  

 	
  

 
	
10.

 	
REPRESENTATIONS AND WARRANTIES

 

	
  

 	
  

 
	
10.1

 	
Fund’s Representations and Warranties

 

          (a)
Fund represents and warrants that (i) it is a duly organized and validly
existing ___________ under the laws of the State of _______________ with all
necessary power and authority to execute and deliver this Agreement and to
perform all of the duties and obligations to be performed by it hereunder and
under the Master Agreement, (ii) this Agreement and performance of all
transactions contemplated hereunder and under the Master Agreement have been
duly authorized, executed and delivered in accordance with all requisite
action, (iii) the person executing this Agreement on its behalf has been duly
and properly authorized to do so, (iv) this Agreement constitutes a valid,
legal and binding obligation enforceable against it in accordance with its
terms, except as may be limited by bankruptcy, insolvency, or similar laws
relating to or limiting creditors’ rights generally, or by equitable
principles, (v) the execution, delivery and performance of this Agreement and
the transactions contemplated hereunder and under the Master Agreement will not
violate any agreement by which it is bound or by which any of its assets are
affected, or its charter or by-laws, or any statute, regulation, rule, order or
judgment applicable to it, (vi) it has the unqualified right to buy the
Securities from Counterparty and resell the Securities to Counterparty upon the
terms and subject to the conditions set forth in the Master Agreement, (vii)
all of the Collateral while held in the Collateral Account shall not at any
time be or become subject to any lien, claim, security interest or encumbrance
of any person or entity other than Fund except as permitted by this Agreement,
and all of such Collateral, upon delivery to Counterparty, will be free and
clear of any lien, claim, security interest or encumbrance (except any lien,
claim, security interest or encumbrance to which such Collateral were subject
at the time of delivery by Counterparty to Fund), (viii) the establishment of
the Collateral Account and its operation by the parties designated herein have
been duly authorized and no other action is required prior to commencing
operation of such account, (ix) its principal executive office is located at
______________________________, (x) it is 

12

subject to regulation by
______________________________________, (xi) it is / is not (STRIKE AS
APPROPRIATE) a “financial institution” for purposes of the Federal Deposit
Insurance Corporation Improvement Act of 1991 (“FDICIA”), (xii) it is /is not
(STRIKE AS APPROPRIATE) an “insured depository institution” for purposes of the
Federal Deposit Insurance Act (the “FDIA”), and, if it is, it shall during the
term of this Agreement comply with the written agreement and related
requirements of Section 1823(e) of the FDIA and (xiii) it will deliver to Bank
a complete copy of the Master Agreement and all amendments thereto or
modifications thereof promptly upon Bank’s request.

          (b)
Fund further represents and warrants that if it is acting as agent for one or
more third parties, Fund is either authorized by virtue of standing instructions
or is a fiduciary or an agent with the authority to enter into, execute and
bind such third parties to this Agreement and the Derivatives Transactions
effected for such third parties. Fund is authorized to make, and makes each of
the representations and warranties above applicable to Fund for each of such
third parties. If Fund acts beyond the authority granted to it by any such
third party or any entity acting on behalf of such third party or exceeds any
limitations on transactions imposed by Counterparty and agreed to by Fund, Fund
will be liable for all such actions as if it were the principal with respect
thereto provided that the same shall not limit in any manner the liability of
such third party or any other party for such actions and related transactions.

	
  

 	
  

 
	
10.2

 	
 Counterparty’s Representations and Warranties

 

          (a)
Counterparty represents and warrants that (i) it is a duly organized and
validly existing _________ under the laws of the State of _________ with all necessary
power and authority to execute and deliver this Agreement and to perform all of
the duties and obligations to be performed by it hereunder and under the Master
Agreement, (ii) this Agreement and performance of all transactions contemplated
hereunder and under the Master Agreement have been duly authorized, executed
and delivered in accordance with all requisite corporate action, (iii) the
person executing this Agreement on its behalf has been duly and properly
authorized to do so, (iv) this Agreement constitutes a valid, legal and binding
obligation enforceable against it in accordance with its terms, except as may
be limited by bankruptcy, insolvency, or similar laws relating to or limiting
creditors’ rights generally, or by equitable principles, (v) the execution,
delivery and performance of this Agreement and the transactions contemplated
hereunder and under the Master Agreement will not violate any agreement by
which it is bound or by which any of its assets are affected, or its charter or
by-laws, or any statute, regulation, rule, order or judgment applicable to it,
(vi) it has the unqualified right to sell, buy, transfer, assign and/or pledge
the Securities transferred on its behalf hereunder, and all of such Securities upon
delivery to Fund, will be free and clear of any lien, claim, security interest
or encumbrance, (vii) it is acting as principal for its own account and (viii)
it will deliver to Bank a complete copy of the Master Agreement and all
amendments thereto and modifications thereof promptly upon Bank’s request.

          (b)
Prior to any Derivatives Transaction, Counterparty shall provide to Fund a
proposed list of the Collateral. Concurrently with each proposed Derivatives
Transaction, Counterparty represents and warrants that (i) it is familiar with
the provisions of Rule 144 under the Securities Act, (ii) it is not, and within
the preceding three months has not been, an “affiliate” of the issuer of any
Collateral, and (iii) any Collateral to be transferred to Fund are not
“restricted securities” within the meaning of Rule 144 or otherwise subject to
any legal, regulatory or contractual restrictions on transfer. Fund represents
and warrants that, as of the termination date of any Derivatives Transaction,
with respect to Collateral, (i) it has examined and approved the list provided
by Counterparty, (ii) it is familiar with the provisions of Rule 144, (iii) it
is not, and within the preceding three months has not been, an “affiliate” of
the issuer of any Collateral, and (iv) the Collateral are not “restricted
securities” within the meaning of Rule 144 or otherwise subject to any legal,
regulatory or contractual restrictions on transfer. The obligation to make
these determinations regarding transferability are solely the responsibility of
Fund and Counterparty,

13

respectively,
and Bank shall have no liability whatsoever with respect to the legality or
veracity of the foregoing.

	
  

 	
  

 
	
10.3

 	
Bank’s Representations and Warranties

 

          Bank
hereby represents and warrants that (a)
it is a national banking association with all necessary power and authority to
execute and deliver this Agreement and to perform all of the duties and
obligations to be performed by it hereunder, (b) this Agreement and performance
of all transactions contemplated hereunder have been duly authorized, executed
and delivered in accordance with all requisite corporate action, (c) the person
executing the Agreement on its behalf has been duly and properly authorized to
do so, and (d) this Agreement constitutes a valid, legal and binding obligation
enforceable against it in accordance with its terms, except as may be limited
by bankruptcy, insolvency, or similar laws relating to or limiting creditors’
rights generally, or by equitable principles. 

	
  

 	
  

 
	
11.

 	
TERMINATION

 

          (a)
This Agreement shall terminate forthwith upon termination of the Master
Agreement and written notice thereof to Bank by Counterparty or Fund or may be
terminated by any party hereto on ten Business Days’ prior written notice to
the other parties; provided, however, that, any such termination shall not
affect any Derivatives Transaction then outstanding. 

          (b)
Bank shall have the right to terminate its
obligations under this Agreement (including its obligations to accept and
monitor securities and to make notifications to the Parties hereunder)
immediately upon notice if either party (i) breach the terms of this Agreement, (ii) files for bankruptcy;
(iii) becomes or is declared insolvent, or is the subject of any proceedings
related to its liquidation, insolvency or the appointment of a receiver or
similar officer for it; (iv) makes an assignment for the benefit of all or
substantially all of its creditors; (v) enters into an agreement for the
composition, extension, or readjustment of substantially all of its
obligations, (vi) any security interest for
the time being affecting the assets or any part of the assets of Fund or
Counterparty becoming enforceable; or (vii) becomes unable, admits its
inability, states its intent or fails generally to pay any debt as it becomes
due.

	
  

 	
  

 
	
12.

 	
SUBCUSTODIANS SECURITIES DEPOSITORIES, AND OTHER AGENTS

 

	
  

 	
  

 
	
12.1

 	
Appointment of Subcustodians; Use of Securities
Depositories

 

          (a)
Bank is authorized under this Agreement to act through and hold International
Securities with subcustodians. Bank will use reasonable care in the selection,
monitoring and continued appointment of such subcustodians. In addition, Bank
and each subcustodian may deposit securities with, and hold Securities in any
securities depository on such terms as such securities depository customarily
operates and the parties hereto will provide Bank with such documentation or
acknowledgements that Bank may require in order to hold the assets in such
securities depository.

          (b)
Any agreement Bank enters into with a subcustodian for holding Bank’s
customers’ assets will provide that such assets will not be subject to any
right, charge, security interest, lien or claim of any kind in favor of such
subcustodian or its creditors except a claim for payment for their safe custody
or administration, or, in the case of cash deposits, except for liens or rights
in favor of creditors of the subcustodian arising under bankruptcy, insolvency
or similar law, and that the beneficial ownership thereof will be freely
transferable without the payment of money or value other than for safe custody
or administration. Bank shall be responsible for all claims for payment of fees
for safe custody or 

14

administration
so that no subcustodian exercises any claim for such payment against such
assets. Where a subcustodian deposits securities with a securities depository,
Bank will cause the subcustodian to identify on its records as belonging to
Bank, as agent, the securities shown on the subcustodian’s account at such
securities depository. This Section will not apply to the extent of any special
agreement or arrangement made by Fund or Counterparty with any particular
subcustodian.

          (c)
Bank is not responsible for the selection or monitoring of any securities
depository and will not be liable for any act or omission by (or the insolvency
of) any securities depository. In the event the parties incur a loss due to the
negligence, willful default, or insolvency of a securities depository, Bank
will make reasonable efforts, in its discretion, to seek recovery from the
securities depository, but Bank will not be obligated to institute legal
proceedings, file proof of claim in any insolvency proceeding, or take any
similar action.

          (d)
Subject to Section 12.1(a) and Bank’s duty to use reasonable care in the
monitoring of a subcustodian’s financial condition as reflected in its
published financial statements and other publicly available financial
information concerning it customarily reviewed by Bank in its oversight
process, Bank will not be responsible for the insolvency of any subcustodian.

          (e)
Bank reserves the right to add, replace or remove subcustodians. Bank will give
prompt notice of any such action, which will be advance notice if practicable.
Upon request by Fund or Counterparty, Bank will identify the name, address and
principal place of business of any subcustodian and the name and address of the
governmental agency or other regulatory authority that supervises or regulates
such subcustodian.

	
  

 	
  

 
	
13. 

 	
MISCELLANEOUS

 

	
  

 	
  

 
	
13.1

 	
Entire Agreement; Modification; Amendment

 

          This
Agreement constitutes the entire agreement of the parties with respect to its
subject matter and supersedes all prior oral or written agreements in regard
thereto. No modification or amendment of this Agreement shall be binding unless
in writing and executed by each of the parties. In the event of conflict
between this Agreement and the Master Agreement, this Agreement shall control.

	
  

 	
  

 
	
13.2

 	
 Severability; Waiver; Survival

 

          (a)
If one or more provisions of this Agreement are held invalid, illegal or
unenforceable in any respect on the basis of any particular circumstances or in
any jurisdiction, the validity, legality and enforceability of such provision
or provisions under other circumstances or in other jurisdictions and of the
remaining provisions will not in any way be affected or impaired.

          (b)
Except as otherwise provided herein, no failure or delay on the part of any
party in exercising any power or right under this Agreement operates as a
waiver, nor does any single or partial exercise of any power or right preclude
any other or further exercise, or the exercise of any other power or right. No
waiver by a party of any provision of this Agreement, or waiver of any breach
or default, is effective unless it is in writing and signed by the party against
whom the waiver is to be enforced.

          (c)
Sections 6, 7, 12 and 13 hereof shall survive termination of any Derivatives Transaction, the Master
Agreement, this Agreement or all of them. .

	
  

 	
  

 
	
13.3 

 	
Interpretation

 

          Headings
are for convenience only and are not intended to affect interpretation.
References to 

15

Sections are to Sections of this Agreement and
references to sub-Sections and paragraphs are to sub-Sections of the Sections
and paragraphs of the sub-Sections in which they appear.

	
  

 	
  

 
	
13.4

 	
Assignment

 

          This
Agreement will be binding on each of the parties’ successors and assigns, but
the parties agree that neither Fund nor Counterparty can assign its rights and
obligations under this Agreement without the prior written consent of the other
parties, which consent will not be unreasonably withheld. Any attempted assignment without such consent
shall be null and void. 

	
  

 	
  

 
	
13.5

 	
Counterparts

 

          This
Agreement may be executed in several counterparts each of which will be deemed
to be an original and together will constitute one and the same agreement.

	
  

 	
  

 
	
13.6

 	
 Notices

 

          All
notices shall be given to the party entitled to receive such notices at the
following addresses, telephone numbers or fax numbers unless otherwise
specified in a notice given to all of the other parties hereto pursuant this
Section as set forth below:

          To
Counterparty:

	
  

 	
  

 
	
  

 	
 To Fund:

 
	
  

 	
  

 
	
  

 	
 To
 Bank:

 
	
  

 	
 JPMorgan
 Chase Bank, N.A.

 
	
  

 	
 4
 New York Plaza, 13th Floor

 
	
  

 	
 NY1-E143

 
	
  

 	
 New
 York, NY 10004

 
	
  

 	
 Attn.:
 Collateral Management
 Client Services - (“Product”)

 
	
  

 	
 Fax:
 (212) 623-0228

 

Until written notice to the contrary is given to the
other parties by Counterparty or Fund, as applicable, the persons listed on
Schedule 4 hereto may be contacted after business hours as necessary in
connection with this Agreement. All notices and instructions shall be deemed
given when received and in the case of facsimiles, when receipt is confirmed. 

	
  

 	
  

 
	
13.7 

 	
Force Majeure

 

          Bank will have no liability for any damage,
loss, expense or liability of any nature that any parties may suffer or incur,
caused by an act of God, fire, flood, civil or labor disturbance, war,
terrorism, act of any governmental authority or other act or threat of any
authority (de jure or de facto), legal constraint, fraud or forgery,
malfunction of equipment or software (except where such malfunction is primarily
attributable to Bank’s negligence in maintaining the equipment or software),
failure of or the effect of rules or operations of any external funds transfer
system, inability to obtain or interruption of external communications
facilities, or any cause beyond the reasonable control of Bank (including
without limitation, the non-availability of appropriate foreign exchange).

	
  

 	
  

 
	
13.8

 	
Governing Law; Jurisdiction

 

16

          This
Agreement will be construed, regulated, and administered under the laws of the
United States or State of New York, as applicable, without regard to New York’s
principles regarding conflict of laws, except that the foregoing shall not
reduce any statutory right to choose New York law or forum. The United States
District Court for the Southern District of New York will have the sole and
exclusive jurisdiction over any lawsuit or other judicial proceeding relating
to or arising from this Agreement and each of the parties agree that this court
will have proper venue for any such lawsuit or judicial proceeding, and the
parties waive any objection to venue or their convenience as a forum. The
parties agree to submit to the jurisdiction of any of the courts specified and
to accept service of process to vest personal jurisdiction over them in this
court. The parties further hereby knowingly, voluntarily and intentionally
waive, to the fullest extent permitted by applicable law, any right to a trial
by jury with respect to any such lawsuit or judicial proceeding arising or
relating to this Agreement or the transactions contemplated hereby. To the extent that in any jurisdiction Fund or
Counterparty may now or hereafter be entitled to claim, for itself or its
assets, immunity from suit, execution, attachment (before or after judgement)
or other legal process, Fund and Counterparty shall not claim, and it hereby
irrevocably waives, such immunity.

          [Fund/Counterparty]
hereby irrevocably appoints _________________________________ (the “Process Agent”),
with an office on the date hereof at
__________________________________________________, New York, NY _________,
United States, as its agent to receive on behalf of [Fund/Counterparty] and its
property service of copies of the summons and complaint and any other process
which may be served in any action or proceeding. This designation is in
addition to any other agent previously or hereafter designated by
[Fund/Counterparty] for service of process. Such service may be made by mailing
or delivering a copy of such process to [Fund/Counterparty] in care of the
Process Agent at the Process Agent’s above address, and [Fund/Counterparty]
hereby irrevocably authorizes and directs the Process Agent to accept such
service on its behalf. Nothing in this Section shall affect the right of
Counterparty, Bank or Fund to serve legal process in any other manner permitted
by law.

	
  

 	
  

 
	
13.9

 	
USA PATRIOT Act Disclosure

 

          Section 326 of the
Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001 (“USA PATRIOT Act”) requires Bank
to implement reasonable procedures to verify the identity of any person that
opens a new Account with it. Accordingly, Fund and Counterparty acknowledge
that Section 326 of the USA PATRIOT Act and Bank’s identity verification
procedures require Bank to obtain information which may be used to confirm
Fund’s or Counterparty’s identity including without limitation Fund’s and
Counterparty’s name, address and organizational documents (“identifying
information”). Fund and Counterparty may also be asked to provide information
about its financial status such as its current audited and unaudited financial
statements. Fund and Counterparty agree to provide Bank with and consent to
Bank obtaining from third parties any such identifying and financial
information required as a condition of opening an account with or using any
service provided by Bank. 

17

          IN
WITNESS WHEREOF, the parties hereto have caused their duly authorized
representatives to execute this Agreement as of the __ day of _________, 2011.

	
  

 	
  

 	
  

 
	
 JPMORGAN CHASE BANK, N.A.

 
	
  

 	
  

 	
  

 
	
 By: 

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
 Name:

 	
  

 
	
 Title:

 	
  

 
	
  

 	
  

 	
  

 
	
 COUNTERPARTY

 	
  

 
	
  

 	
  

 
	
 By: 

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
 Name:

 	
  

 
	

 

 	
  

 
	
 Title:

 	
  

 
	
  

 	
  

 	
  

 
	
  [EACH FUND SET FORTH ON EXHIBIT A
 HERETO]

 
	
  

 	
  

 	
  

 
	
 By: 

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
 Name:

 	
  

 
	
 Title:

 	
  

 

18

EXHIBIT A

LIST OF
FUNDS

19

SCHEDULE 1

 [TBA]

20

SCHEDULE 2

	
  

 	
  

 
	
 A.
 The Collateral Account at Bank

 	
 B. Fund’s Delivery Instructions for Cash:

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ABA:

 	
  

 	
 ABA:

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
 BIC:
 

 	
  

 
	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
 DTC:
 

 	
  

 
	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
 Bank
 Name: 

 	
  

 
	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Fund’s
 Name

 	
  

 	
  

 	
 Account
 Name:

 	
  

 
	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 FOR
 TRI-PARTY WITH

 	
  

 	
  

 	
 Account
 Number:

 	
  

 
	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Branch:

 	
  

 
	

 

 	
  

 	
  

 	

 

 	
  

 
	
      (Counterparty’s
 Name)

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 City:

 	
  

 
	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Attention:

 	
  

 
	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Tax
 ID #:

 	
  

 
	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 C. Fund’s 

 	
  

 
	
  

 	
  

 	
  

 	
 Delivery
 Instructions for Securities:

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 ABA:
 

 	
  

 
	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Bank
 Name: 

 	
  

 
	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Account
 Name: 

 	
  

 
	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Branch:
 

 	
  

 
	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 City:
 

 	
  

 
	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Attention:

 	
  

 
	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Tax
 ID #:

 	
  

 
	
  

 	
  

 	
  

 	

 

 	
  

 

21

D. Authorized Persons for Fund:

	
  

 	
  

 	
  

 
	
 Name

 	
  

 	
 Title

 
	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 

22

Authorized Signature List

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Name

 Title

 	
  

 	
 Signature

 	
  

 	
 Telephone
 Number(s)

 	
  

 	
 Initiate 

 Y/N

 	
  

 	
 Call

 back 

 Y/N

 	
  

 	
 Communication
 Modes

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 o 

 	
 Facsimile 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 o 

 	
Telephone 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 o 

 	
Other
– must explain: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 o 

 	
Facsimile 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 o 

 	
Telephone 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 o 

 	
Other
– must explain: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 o 

 	
Facsimile 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 o 

 	
Telephone 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 o 

 	
Other
– must explain: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 o 

 	
Facsimile 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 o 

 	
Telephone 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 o 

 	
Other
– must explain: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 o 

 	
Facsimile 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 o 

 	
Telephone 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 o 

 	
Other
– must explain: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 o 

 	
Facsimile 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 o 

 	
Telephone 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 o 

 	
Other
– must explain: 

 

23

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Line
 Sheet for Repetitive Payment Orders

 
	
 Receiving

 Bank ABA,

 CHIPS

 Number of

 BIC Code

 	
  

 	
 Receiving

 Bank

 Name

 	
  

 	
 Intermediary

 Bank ABA,

 CHIPS

 Number of

 BIC Code (if

 any)

 	
  

 	
 Intermediary

 Bank Name (if

 any)

 	
  

 	
 Beneficiary

 Name

 	
  

 	
 Beneficiary

 Account

 Number

 	
  

 	
 Account
 to be

 debited

 	
  

 	
 Line
 Number (To

 be assigned by

 Bank)

 

24

SCHEDULE 3 

ELECTRONIC ACCESS 

1. Bank shall permit Fund and Counterparty and its
Authorized Persons to access electronically the applications and products
listed on Exhibit 1 to this Schedule (the “Products”). Bank reserves the right
to modify this Schedule and, subject to the terms and conditions of the
Agreement, the products and services available through the Products, upon
notice to Fund and Counterparty. Bank shall endeavour to give the parties
hereto reasonable notice of its termination or suspension of access hereunder
to any Product, but may do so immediately upon written notice to the parties
hereto if Bank determines, in its sole discretion, that providing access to
such Product would violate Applicable Law or that the security or integrity of
such Product is at risk.

2. In consideration of the fees paid by the parties
hereto to Bank and subject to any applicable software license in relation to
Bank owned or sublicensed software provided for a particular application, Bank
grants to the parties hereto on the terms of this Schedule a non-exclusive
license to use the Products and the information and data made available to the
parties hereto through the Products (the “Data”) for the sole use of the
parties hereto. The parties hereto may download the Data and print out hard
copies for its reference, provided that it does not remove any copyright or
other notices contained therein or any hyperlink or other reference to any such
notice.

3. The rights and obligations of the parties with
respect to the provision of certain cash products and services via the Products
shall also be governed, to the extent not governed by this Agreement, by Bank’s
terms and conditions relating to such products and services, as the same may be
amended from time to time (the “Product Terms”). If and to the extent that
there is a conflict between the Product Terms and this Schedule, the provisions
of this Schedule shall prevail. 

4. The parties hereto acknowledge that there are
certain security, corruption, transaction error and access availability risks
associated with using open networks such as the internet, and the parties
hereto hereby expressly assume such risks. The parties hereto shall make its
own independent assessment of the adequacy of the internet and of the security
procedures made available by Bank. The parties hereto acknowledge and agree
that the selection and use by it of third party security and communications
software and third party service providers is the sole responsibility of the
parties hereto, and Bank disclaims all risks related thereto, notwithstanding
that Bank may recommend certain security and/or communication software
packages. All such software must be interoperable with Bank’s software. Each of
the parties hereto and Bank shall be responsible for the proper functioning,
maintenance and security of its own systems, services, software and other
equipment.

5. Notwithstanding the other provisions of the
Agreement, Bank shall not be liable for any liabilities arising out of the use
or unavailability of Bank’s web site or any means provided by Bank of accessing
the Products through Bank’s web site or unauthorised use of or access to the
Software in the absence of Bank’s gross negligence or wilful misconduct.

6. The parties hereto shall not use the Products to
transmit (i) any virus, worm, or destructive element or any programs or data
that may be reasonably expected to interfere with or disrupt the Products or
servers connected to the Products; (ii) material that violates the rights of
another, including but not limited to the intellectual property rights of
another; and (iii) “junk mail”, “spam”, “chain letters” or unsolicited mass
distribution of e-mail.

7. The parties hereto shall promptly and accurately
designate in writing to Bank the geographic location of its users from time to
time. Each of the parties hereto further represents and warrants to Bank that
it shall not access the service from any jurisdiction which Bank informs the
customer or where such party has actual knowledge that the service is not
authorized for use due to local regulations or laws. Prior to submitting any
document which designates the persons authorized to act on behalf of the
parties hereto, the parties hereto shall obtain from each individual referred
to in such document all necessary consents to enable Bank to process the data
set out therein for the purposes of providing the Products.

25

8. The parties hereto shall be responsible for the
compliance of its employees, officers, agents and other persons authorized by
it to access the Products (“Authorized Persons’) with the terms of this
Schedule.

9. (i)
Bank will collect information about Fund and Counterparty and their employees
and agents (such as, without limitation, authorised signatory details) which
may constitute personal data for the purposes of the Data Protection Act 1998
(the “Act”) and other relevant
data protection legislation. Such personal data may be collected by or on
behalf of Bank in a number of ways (the “Collection
Methods”), including via documentation relating to the provision to
or use by Fund or Counterparty of electronic services, or via their use of such
electronic services, and via other correspondence or communications among or
between Fund, Counterparty and Bank. 

          (ii) Bank
will use personal data collected by it or on its behalf via the Collection
Methods for the following purposes (the “Purposes”),
namely for the purpose of providing the services to Fund and Counterparty in
accordance with this Agreement including this Schedule and any other Product
Terms, for Bank’s internal administrative purposes, for contacting Fund and
Counterparty about products and services which Bank or other members of Bank’s
group offer which Bank believes may be of interest to them, and as may be
otherwise required by law or applicable regulatory or governmental authorities,
and such purposes may include transfer of such personal data outside of the
European Economic Area to Bank’s subsidiaries or other connected companies or
to other organisations as may be required by law or other applicable regulatory
or governmental authorities. 

          (iii) Fund
and Counterparty shall ensure that any disclosure of personal data made by them
or by their employees or agents via the Collection Methods which relate to their
employees or agents is only made following notification by Fund or Counterparty
to data subjects of the Purposes for which their personal data may be processed
by or on behalf of Bank, and is otherwise fair and lawful. 

10. Fund and Counterparty each acknowledge
that it is not a “consumer” for the purpose of the European Union’s Electronic
Commerce Directive (“ECD”) (i.e.
that it is not an individual) and agree that Bank shall not be required to make
any disclosures or do any other thing which a non-consumer may agree not to
require under the UK rules and legislation implementing the ECD. For further
information on JPMorgan Chase Bank, N.A., please see “Notice regarding EU
e-commerce information” in the Terms & Conditions on
http://www.jpmorgan.com.

11. The Fund
and Counterparty acknowledges
that Data accessed under this Agreement may not have been reviewed by Bank and
may be inaccurate due to mis-postings, delays in updating account records, and
other causes. Except as may otherwise be expressly set forth in the applicable
agreement Product Terms, Bank is not obligated to assure the accuracy of the
Data accessed under these Terms and will not be liable for any loss or damage
arising out of the inaccuracy of any Data accessed under these Terms.

26

EXHIBIT 1 TO SCHEDULE 3

	
  

 	
  

 	
  

 
	
 Name of Application

 	
  

 	
 Description

 
	

 

 	
  

 	

 

 
	
 Comsic

 	
  

 	
 Provides Internet-based
 capability for U.S. and global voluntary corporate actions together with
 intraday notifications of corporate action events.

 
	
  

 
	
 GTAConnect

 	
  

 	
 Provides Internet-based capability
 for entry and transmission of Clearance instructions, as well as a full suite
 of intraday & COB client reporting (via JPMorgan Access portal).

 
	
  

 
	
 File Delivery / Messenger

 	
  

 	
 Enables Fund and
 Counterparty to securely download report and/or custom data files using SSL
 encryption. Customer may also utilise the Bank’s Messenger software to
 schedule automated downloads.

 
	
  

 
	
 Secure eMail

 	
  

 	
 Provides a secure means
 for Fund and Counterparty to communicate online with Bank personnel.

 
	
  

 
	
 Views Reporting / 

 Portfolio Views

 	
  

 	
 Provides Internet-based
 custody, accounting and securities lending reporting on an intra-day,
 close-of-business or historical basis. Bank clients may choose from standard
 board-room quality reports or create and save custom formats.

 
	
  

 
	
 Web CMS

 	
  

 	
 Provides Internet-based
 capability for intraday & COB client reporting via the JPMorgan Access
 portal.

 

27

SCHEDULE 4

AFTER HOURS CONTACT PERSONS

For Counterparty:

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 After
 Hours

 	
  

 	
  

 
	
 Name

 	
  

 	
 Address

 	
  

 	
 Office
 Number

 	
  

 	
 Telephone
 Number

 	
  

 	
  

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 For
 Fund:

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 After
 Hours

 	
  

 	
  

 
	
 Name

 	
  

 	
 Address

 	
  

 	
 Office Number

 	
  

 	
 Telephone Number

 	
  

 	
  

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	
  

 

28Exhibit 10.5

Dated: ______, 2011

FACILITY AGREEMENT

For the entering into and termination of

COMMODITY CONTRACTS

Between

ETFS COLLATERALIZED COMMODITIES TRUST

ON BEHALF OF ITS SEPARATE SERIES (FUNDS)

and

[COUNTERPARTY]

CONTENTS

	
  

 	
  

 	
  

 	
  

 
	
 1.

 	
 Defined
 terms and interpretation

 	
  

 	
 1

 
	
 2.

 	
 Effectiveness
 and Term

 	
  

 	
 18

 
	
 3.

 	
 Creation and
 Cancellation of Commodity Contracts

 	
  

 	
 18

 
	
 4.

 	
 Classes of
 Commodity Contracts

 	
  

 	
 18

 
	
 5.

 	
 Price of
 Commodity Contracts

 	
  

 	
 19

 
	
 6.

 	
 Substitution
 of Commodity Indices

 	
  

 	
 26

 
	
 7.

 	
 Authorized
 Participants

 	
  

 	
 26

 
	
 8.

 	
 Material
 Adverse Change

 	
  

 	
 29

 
	
 9.

 	
 Termination

 	
  

 	
 30

 
	
 10.

 	
 Exercise of Set-off rights

 	
  

 	
 32

 
	
 11.

 	
 General
 Payment Provisions

 	
  

 	
 33

 
	
 12.

 	
 Deduction or
 Withholding for Tax

 	
  

 	
 34

 
	
 13.

 	
 Bank
 Accounts

 	
  

 	
 34

 
	
 14.

 	
 Commodity
 Indices

 	
  

 	
 34

 
	
 15.

 	
 Non-Publication
 of Commodity Indices

 	
  

 	
 36

 
	
 16.

 	
 Hedging
 Disruption Events

 	
  

 	
 36

 
	
 17.

 	
 Calculation
 Agent

 	
  

 	
 37

 
	
 18.

 	
 Selling and
 Listing Restrictions and Prohibited Investors

 	
  

 	
 40

 
	
 19.

 	
 Undertakings

 	
  

 	
 40

 
	
 20.

 	
 Representations
 and Warranties

 	
  

 	
 41

 
	
 21.

 	
 Assignment

 	
  

 	
 44

 
	
 22.

 	
 Service
 Agents

 	
  

 	
 44

 
	
 23.

 	
 Authorized
 Individuals

 	
  

 	
 44

 
	
 24.

 	
 Contact
 Details

 	
  

 	
 45

 
	
 25.

 	
 Notices

 	
  

 	
 46

 
	
 26.

 	
 Other
 Agreements

 	
  

 	
 47

 
	
 27.

 	
 Amendment

 	
  

 	
 48

 
	
 28.

 	
 Entire
 Agreement

 	
  

 	
 48

 
	
 29.

 	
 Applicable
 Law

 	
  

 	
 48

 
	
 30.

 	
 Jurisdiction

 	
  

 	
 49

 
	
 31.

 	
 Limited
 Recourse and Non-Petition

 	
  

 	
 49

 
	
 32.

 	
 Counterparts

 	
  

 	
 49

 
	
 Schedule 1
 The Funds

 	
  

 	
 50

 
	
 Schedule 2
 Classes

 	
  

 	
 51

 
	
 Schedule 3
 Commodity Indices

 	
  

 	
 53

 
	
 Schedule 4
 Form of Creation Notice

 	
  

 	
 54

 
	
 Schedule 5
 Form of Cancellation Notice

 	
  

 	
 60

 
	
 Schedule 6
 Creation of Commodity Contracts

 	
  

 	
 64

 
	
 Schedule 7
 Cancellation of Commodity Contracts

 	
  

 	
 72

 
	
 Schedule 8 Form of Withdrawal Notice

 	
  

 	
 81

 

2

THIS FACILITY
AGREEMENT is made
as of ________, 2011.

BETWEEN: 

	
  

 	
  

 	
  

 
	 	
 (1)

 	
 ETFS COLLATERALIZED COMMODITIES TRUST, a Delaware statutory trust, whose registered office is
located at [c/o ETF Securities USA LLC, 48 Wall Street, New York, New York
10005] (the “Trust”),
on behalf of each separate series (each a “Fund”) as set forth on Schedule 1
hereto; and 

 
	 	
  

 	
  

 
	 	
 (2)

 	
 [________ ] (“Counterparty”), whose office is located at
 [          ]

 

WHEREAS: 

	
  

 	
  

 	
  

 
	 	
 (A)

 	
 Funds may create or redeem Long, Short, and Leveraged Shares at
 values based on the return of Commodity Contracts referencing the Commodity
 Indices; and

 
	 	
  

 	
  

 
	 	
 (B)

 	
 Counterparty has agreed to provide each Fund with a facility for
 entering into and terminating Commodity Contracts on the terms and conditions
 herein stated.

 

NOW
THEREFORE in consideration of the mutual covenants,
conditions, representations, and warranties set forth herein, it is hereby
agreed as follows: 

1. Defined terms and interpretation

Defined terms

1.1 In this Agreement, the following words and expressions have the
following meanings:

Acceptable Credit Rating
means a long term senior debt credit rating of at least BBB+ from Standard
& Poor’s Rating Services, a division of the McGraw-Hill Companies Inc. (or
any successor to the ratings business thereof), and of at least Baa1 from
Moody’s Investors Service Inc. (or any successor to the ratings business
thereof);

Affected Business has the meaning
given in Clause 8.1;

Affected Party has the meaning
given in Clause 8.1;

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

Aggregate Outstanding Contracts Price
means in respect of any day the aggregate of the sum of the Price on that
day of each and every Commodity Contract then in existence (including Commodity
Contracts in respect of which a Creation Notice has been given on or prior to
that day and which have not been issued or Cancelled, but excluding Commodity
Contracts in respect of which a valid Cancellation Notice has been given on or
before that day);

Agreement means
this agreement and includes the Schedules hereto;

Applicable Authorized Participant Agreement means,
with respect to each Authorized Participant Agreement, the authorized
participant agreement deemed to have been entered into between the Fund and the
relevant Authorized Participant with respect to the Counterparty as a
“Commodity Contract Counterparty” (as defined in that Authorized Participant
Agreement) pursuant to section 17 of that Authorized Participant Agreement;]

Application
means an application for the issue of Shares by the Fund given by an Authorized
Participant in accordance with the relevant Applicable Authorized Participant
Agreement (and Apply shall be construed accordingly); 

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

Authorized Participant
means a person who (1) is a registered broker-dealer or other securities market
participant such as a bank or other financial institution which is not required
to register as a broker-dealer to engage in securities transactions, (2) is a
participant in DTC, (3) has entered into an Authorized Participant Agreement
with the Trust, on behalf of each of the Funds, and the Sponsor, and (4) has
(except in the case of the Counterparty itself in circumstances where it has
entered into an Authorized Participant Agreement with the Fund in relation to
Shares) entered into a Direct Agreement with each of the Counterparties of the
relevant Fund and which is not an Unacceptable Authorized Participant provided
that no person shall be an Authorized Participant unless and until the Security
Conditions with respect to the Authorized Participant shall have been
satisfied;

Authorized Participant Agreement
means an agreement entered into by each Authorized Participant, the Sponsor,
and the Trust, on behalf of its Funds, which sets forth the procedures for the
creation and redemption of Creation Units in a Fund which is substantially in
the form of the agreed form;

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

Calculation Agency Agreement
means the calculation agency agreement in relation to Commodity Contracts [of
even date herewith] between ________, [Counterparty] and the Trust on behalf of
the Funds;

Calculation Agent
means [(subject as provided in Clauses 17.4 and 17.5 and the Calculation
Agency Agreement)] [____________] acting as calculation agent for the purposes
referred to in Clause 17 in accordance with the Calculation Agency
Agreement;

Cancellation
means, the termination of Commodity Contracts in accordance with
Clause 3.3(b) and Schedule 7 (and Cancel (but not cancellation or cancel)shall be construed accordingly);  

Cancellation Amount means, in
respect of a Cancellation, the amount determined in accordance with
paragraph 12 of Schedule 7 for that Cancellation; 

Cancellation Notice
means a notice in the form attached as Schedule 6 (or such other form as
may be agreed between the Trust and the Counterparty from time to time) and
given in accordance with the Cancellation Procedures;

Cancellation Procedures
means the procedures for Cancellation of Commodity Contracts set out in
Schedule 7;

Capital Adjustment Agreement means,
the agreement between the Trust and the Counterparty [of even date herewith]
providing with respect to each class of Commodity Contract an adjustment factor
to be included in the calculation of the Price; 

Change in Tax Law
means (a) any action taken by a taxing authority, or brought by a taxing
authority in a court of competent jurisdiction after the date of this Agreement
(regardless of whether such action is taken or brought with respect to a
Party); or (b) the announcement, enactment, promulgation, execution or
ratification of, or any change or proposed change in or amendment or proposed 

2

amendment to, any law, treaty or practice relating to tax (or in the
application or official interpretation by any Competent Authority of any law,
treaty, or practice relating to tax) that occurs on or after the date of this
Agreement;

CIP means
“Commodity Index Percentage” as defined in the Handbook from time to time; 

class means a
class of Commodity Contracts and the Shares of the corresponding Fund, which
are determined by reference to a particular Commodity Index. As at the
Effective Date the classes of Commodity Contracts and Shares are set out in
Parts A and B of Schedule 2 and their applicable Commodity Indices are set
out in Schedule 3;

Class Amount means, in respect
of the Creation or Cancellation of Commodity Contracts of a particular class,
the Price of one such Commodity Contract on the Relevant Pricing Day multiplied
by the number of Commodity Contracts of that class to be Created or Cancelled;

Commodity Contract
means a contract between a Fund and the Counterparty Created in accordance with
Clause 3 and Schedule 6, and governed by the ISDA Agreements, and includes
Short Commodity Contracts, Long Commodity Contracts and Leveraged Commodity
Contracts;

Commodity Contract Counterparty
means the counterparty to each agreement entitled “Facility Agreement between
such counterparty and the Trust providing for the creation and termination of
commodity contracts thereunder;

[Commodity Contract Spread means the
spread rate agreed by a Fund and Counterparty as compensation of the
Counterparty for providing the Fund with exposure to the Commodity Index, which
spread is a component of the [Daily] Capital Adjustment.];

Commodity Index
means an Individual Commodity Index or a Composite Commodity Index.;

Shares means
Short Shares, Long Shares and Leveraged Shares;

CME Indexes means
CME Group Index Services LLC;

Competent Authority
means any competent supranational, governmental, judicial or regulatory
authority;

Component Exchange means:

	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 for each Individual Commodity Index, the futures exchange on which is
 traded the Designated Contract by reference to the prices of which that
 Individual Commodity Index is calculated; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 in relation to a commodity comprised in a Composite Commodity Index,
 the futures exchange on which is traded the Designated Contract for that
 commodity the Settlement Price of which is included in the calculation of
 that Composite Commodity Index; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 in relation to a Designated Contract the Settlement Price of which is
 included in the calculation of a Commodity Index, the futures exchange on
 which that Designated Contract is traded;

 

Composite
Commodity Index means an index for a group of
commodities (which may change from time to time with respect to such index), as
calculated by Dow Jones in conjunction with UBS Securities and published by Dow
Jones from time to time. The names of the Composite Commodity Indices as at the
Effective Date are set out in Part B of Schedule 3;

Compulsory
Cancellation means a Cancellation of Commodity
Contracts in accordance with paragraph 14 of Schedule 7; 

3

Compulsory Cancellation Number means, in
respect of a Compulsory Pricing Date and a class of Commodity Contracts, where
such Compulsory Pricing Date is notified in accordance with:  

	
  

 	
  

 
	
 (a)

 	
 Clause 9, the total number of Commodity Contracts of that class
 outstanding as at the end of the Business Day immediately preceding the
 Compulsory Pricing Date;

 
	
  

 	
  

 
	
 (b)

 	
 Clause 15.4, provided that the Individual Commodity
 Index concerned relates to that class, the total number of Commodity
 Contracts of that class outstanding as at the end of the Business Day
 immediately preceding the Compulsory Pricing Date; and

 
	
  

 	
  

 
	
 (c)

 	
 Clause 16.3, the number of that class of outstanding Commodity
 Contracts so notified by the Counterparty (unless paragraph 15(b) of
 Schedule 7 applies, in which case it means all the Commodity Contracts of
 that class outstanding as at the end of the Business Day immediately
 preceding the Compulsory Pricing Date);

 

Compulsory
Daily Pricing Number means, in respect of a
Compulsory Cancellation and a class of Commodity Contracts, the number of
outstanding Commodity Contracts of the relevant class which, in relation to
each Pricing Day on which Commodity Contracts of that class are required to be
Priced under paragraph 14(b) of Schedule 7, shall be: 

	
  

 	
  

 
	
 (a)

 	
 if the Compulsory Cancellation Number is not more than the Redemption
 Limit (in each case for that class), the Compulsory Cancellation Number;

 
	
  

 	
  

 
	
 (b)

 	
 if the Compulsory Cancellation Number is equal to or more than 5
 times the Redemption Limit, 20 per cent. of the Compulsory Cancellation
 Number; and

 
	
  

 	
  

 
	
 (c)

 	
 otherwise, the amount shall be the Redemption Limit on the first and
 on each consecutive Pricing Day thereafter except on the last Pricing Day
 when the amount shall be the Compulsory Cancellation Number minus the sum of
 the Compulsory Number Priced on each preceding Pricing Day for that class in
 relation to that Compulsory Cancellation;

 

Compulsory
Number Priced means, in respect of a Pricing
Day and a class of Commodity Contracts, the Compulsory Daily Pricing Number provided
that where the Compulsory Pricing Date is notified in accordance
with Clause 16.3 the Compulsory Number Priced shall be reduced by the
number of Commodity Contracts of that class which are subject to a Cancellation
Notice given in respect of that Pricing Day and if such reduction would result
in a negative number that negative number shall be carried forward and applied
to reduce the Compulsory Number Priced for the next following Pricing Day and
any negative number on the last Pricing Day will be ignored;

Compulsory
Pricing Date means a date notified in accordance
with Clause 9, Clause 15.4, Clause 16.3 or Clause 17.6(b),
as applicable, which shall be an Fund Business Day not earlier than 2 Business
Days after the date on which such notice is received by the Party to whom such
notice is given; 

Counterparty
Account means the bank account established by the
Counterparty in accordance with Clause 13.2, or any substitute account
duly notified by the Counterparty in accordance with Clause 13.4;

Counterparty
Default means:

	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 the failure of the Counterparty to make a payment it is due to make
 in accordance with the Cancellation Procedures, where such failure is not
 rectified within five Business Days following the day on which the
 Counterparty receives notice of the failure sent by the Trust in accordance
 with the procedure for sending Pricing Notices under Clause 25.1, or
 being in breach of any other of its obligations under this Agreement provided
 that such breach (if capable of being rectified) is not rectified
 within (5) five Business Days of the Counterparty receiving written notice
 from the Trust of such breach; 

 

4

	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 any Guarantor failing to pay an amount due under any Guarantee, when
 due

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 an Insolvency Event occurring with respect to the Counterparty or any
 Guarantor; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (g)

 	
 the expiration or termination of any Guarantee (other than where a
 replacement guarantee (or other form of credit support) acceptable to the
 Trust in its sole discretion is provided to the Trust in lieu of such
 Guarantee upon or prior to such expiration or termination) or the failing or
 ceasing of any Guarantee to be in full force and effect for the purpose of
 this Agreement, in each case other than in accordance with its terms, prior
 to the satisfaction of all obligations of the Counterparty under this
 Agreement to which such Guarantee relates and without the written consent of
 the Trust (and this paragraph (d) shall apply mutatis mutandis to any
 replacement guarantee (or other form of credit support));

 
	
  

 	
  

 	
  

 
	
  

 	
 (h)

 	
 if notice is given to terminate any Guarantee, such termination to
 become effective less than five days after the date of receipt of the notice,
 other than where prior to the date of the notice a replacement guarantee (or
 other form of credit support) acceptable to the Trust in its sole discretion
 is provided to the Trust in lieu of such Guarantee, where such notice is
 given prior to the satisfaction of all obligations of the Counterparty under
 this Agreement to which such Guarantee relates and without the written
 consent of the Trust (and this paragraph (g) shall apply mutatis mutandis to any
 replacement guarantee (or other form of credit support));

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 the occurrence of any Event of Default;

 

Counterparty Settlement Failure means, in
relation to any Commodity Contracts, the failure by the Counterparty to comply
with its obligations in respect of the Cancellation of those Commodity
Contracts under this Agreement (including without limitation a failure to pay
the Cancellation Amount in respect of those Commodity Contracts on the due date
therefor into the applicable Redemption Account in accordance with this
Agreement);

Creation means
the entering into of Commodity Contracts between the Counterparty and a Fund in
accordance with Clause 3.2 and Schedule 6 (and Create and Created shall
be construed accordingly);  

Creation Amount
means, in respect of a Creation, the amount determined in accordance with
paragraph 12 of Schedule 6 for that Creation;

Creation Limits
means the limits on Creation set out in paragraph 18 of Schedule 6;

Creation Notice means
a notice in the form attached as Schedule 4 (or such other form as may be
agreed between the Trust and the Counterparty from time to time), and given in
accordance with the Creation Procedures;

Creation Procedures
means the procedures for Creation of Commodity Contracts set out in
Schedule 6;

Creation Unit
means a block of [50,000] Shares of a Fund that is issued upon sale to
Authorized Participants or submitted for redemption by an Authorized
Participant.

	
  

 	
  

 	
  

 
	
  

 	
 (j)

 	
  

 

Daily Capital Adjustment
means , with respect to each class of Commodity Contract an adjustment factor
to be included in the calculation of the Price which is agreed from time to
time by the Counterparty and the Fund to which such class relates; 

Daily Commodity Limit
means, in relation to any Relevant Commodity, in respect of Brent Crude Oil,
US$[                    ],
and in respect of each other Relevant Commodity the product of
US$[   ] and the CIP of that Relevant Commodity;

5

Delta Factor or DF means the Delta Factor applicable to a particular
Fund, expressed as a number. For Short Commodity Contracts, DF = -1,
for Long Commodity Contracts, DF = 1 and for Leveraged Commodity
Contracts, DF = +2; 

Designated Contract
means the constituent futures contract of an Individual Commodity Index or, as
the case may be, the constituent futures contract for a commodity comprised in a
Composite Commodity Index (and including as the context may require Lead
Futures and/or Next Futures);

Default Rate
means a rate per annum of interest equal to [       ], compounding daily;

Direct Agreement means an
agreement entered into between the Counterparty and an Authorized Participant
or a person proposed by the Trust to become an Authorized Participant, which is
substantially in the form of the agreed form;

Disclosure Package means
the Prospectus and any amendments and supplements thereto at the Time of
Creation and any free writing prospectus as defined in Rule 405 of the
Securities Act prepared by, for or on behalf of the Sponsor before the Time of
Creation and intended for general distribution;

DJ-UBS CISM
means the Dow Jones – UBS Commodity IndexSM calculated by UBS
Securities in conjunction with CME Indexes;

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

Effective Date means
[the date of this Agreement];

Equivalent Number
means in relation to the Creation or Cancellation of Commodity Contracts in
conjunction with an Application for or Redemption of Shares, the number and
class of Commodity Contracts which is the same as the number and class of
Shares to which the Application or Redemption relates;

Exposure (i) in
respect of any class of Individual Commodity Contract, to the Relevant Commodity
at any time means an amount equal to the Price of that class of Individual
Commodity Contract; and (ii) in respect of any class of Index Commodity
Contract, to any Relevant Commodity at any time means an amount equal to the
Price of that class of Index Commodity Contract at that time multiplied by a
fraction of which the numerator is the CIP of the Relevant Commodity and the
denominator is the sum of the CIPs of each of the Relevant Commodities in
relation to that class of Index Commodity Contract;

Facility Agreement
means the facility agreement between each Commodity Contract Counterparty and
the Trust providing for the creation and termination of commodity contracts
thereunder;

Fund Business Day
means a day which is both a General Trading Day and a [New York] Business Day; 

Fund Event of Default
means any of:

	
  

 	
  

 
	
 (a)

 	
 an Insolvency Event occurring with respect to the Fund; or

 
	
  

 	
  

 
	
 (b)

 	
 the Fund being in breach of this Agreement provided that such breach
 (if capable of being rectified) is not rectified within (5) five Business
 Days of the Counterparty sending a written notice of such breach, and further
 provided
 that a failure by the Fund to comply with its obligations under
 Clause 3.3(a) or Clause 11.2 or under paragraphs 14 of
 Schedule 11 or 19(c)(ii) of Schedule 12 shall not be a breach of
 this Agreement if caused by a corresponding failure of an Authorized
 Participant to make a payment that it is required to make to the Fund under
 the relevant Applicable Authorized Participant Agreement; or

 

6

	
  

 	
  

 
	
 (c)

 	
 the occurrence of any Event of Default in respect of the Fund under
 the ISDA Master Agreement.

 

Funding Rate means a rate
per annum of interest equal to [     ], compounding
daily;

Fund Settlement Failure means, in
relation to any Commodity Contracts, the failure by an Authorized Participant
to comply with its obligations in respect of the Application for the Shares
relating to those Commodity Contracts under the relevant Applicable Authorized
Participant Agreement (including without limitation a failure to pay the
Application Amount in respect of those Shares on the due date therefor in full
cleared and immediately available US Dollar funds into the Counterparty Account
in accordance with the relevant Applicable Authorized Participant Agreement),
other than any such failure which has occurred as a result of the failure of
the Counterparty to comply with its obligations in respect of the Creation of
the corresponding Commodity Contracts under this Agreement;

General Notice
means any notice given in accordance with this Agreement other than a Pricing
Notice;

General Trading Day
means a “Business Day” as defined in the Handbook from time to time (and
meaning as at the date of this Agreement “any day on which the sum of the CIPs
for those Index Commodities that are open for trading is greater than 50%”,
where “Index Commodities” has the meaning given to it in the Handbook);

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

Guarantee means
any guarantee or other form of credit support given to the Fund in respect of
the obligations of the Counterparty to the Fund under this Agreement;

Guarantor means
any entity providing a Guarantee;

 [Guarantor Tax Event means
any of the events specified as “Guarantor Tax Events” in any Guarantee;]

Handbook means
the document called the Dow Jones-UBS Commodity IndexSM Handbook]
which sets out the methodology for calculation of the DJ-UBS CISM
prepared and as amended from time to time by UBS Securities LLC and CME
Indexes, a copy of which, as at the date of this Agreement, can be obtained
from the following address:
http://www.djindexes.com/mdsidx/downloads/ubs/DJUBSCI_handbook.pdf;

Hedging Disruption Event
means an event, circumstance or cause (including, without limitation, the
adoption of or any change in any applicable law or regulation (and without
regard to Section 739 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010 or any similar legal certainty provision)) that the
Counterparty reasonably and in good faith determines has had or would
reasonably be expected to have a materially adverse effect on the
Counterparty’s ability to hedge its positions in connection with this Agreement
or Commodity Contracts of the relevant class, including, without limitation,
any limitation or prohibition associated with acquiring, establishing,
re-establishing, substituting, maintaining, unwinding or disposing of any
hedging transaction in connection with this Agreement or such Commodity
Contracts, in each case whether due to market illiquidity, position limits in
respect of any futures contract, illegality, the adoption of or change in any
law or other regulatory instrument, lack of availability of hedging transaction
, the application of position limits to Counterparty, the lack of availability
of hedging exemptions [from applicable regulatory requirements], actions of
market participants or the occurrence or existence of any other circumstance or
event;

Index Commodity Contract means
a Long Index Commodity Contract;

Index Share means
a Long Index Share;

7

Indicative Price
means, for the purpose of paragraph 4 (b) and (c) of Schedules 6 and
7 in respect of a particular class of Index Commodity Contract on a calendar
day, the value calculated in accordance with Clause 5.5;

Individual Commodity Contract means
a Short Individual Commodity Contract, a Long Individual Commodity Contract or
a Leveraged Individual Commodity Contract;

Individual Commodity Index means
an index for an individual commodity listed in Part A of Schedule 3
(as adjusted in accordance with this Agreement through the addition or removal
of other Individual Commodity Indices), as calculated and published by UBS
Securities and CME Indexes from time to time. The names of all Individual
Commodity Indices as at the Effective Date are set out in Part A of
Schedule 3;

Individual Share means
a Short Individual Share, a Long Individual Share or a Leveraged Individual
Share;

Insolvency Event means such
person (1) is dissolved (other than pursuant to a consolidation, amalgamation
or merger); (2) becomes insolvent or is
unable to pay its debts or fails or admits in writing its inability
generally to pay its debts as they become due; (3) makes a general assignment,
arrangement or composition with or for the benefit of its creditors; (4) institutes
or has instituted against it a proceeding seeking a judgment of insolvency or
bankruptcy or any other relief under any bankruptcy or insolvency law or other
similar law affecting creditors’ rights, or a petition is presented for its
winding-up or liquidation, and, in the case of any such proceeding or petition
instituted or presented against it, such proceeding or petition (A) results in
a judgment of insolvency or bankruptcy or the entry of an order for relief or
the making of an order for its winding-up or liquidation or (B) is not
dismissed, discharged, stayed or restrained in each case within 30 days of the
institution or presentation thereof; (5)has a resolution passed for its
winding-up, official management or liquidation (other than pursuant to a
consolidation, amalgamation or merger); (6) seeks or becomes subject to the
appointment of an administrator, provisional liquidator, conservator, receiver,
trustee, custodian or other similar official for it or for all or substantially
all its assets; (7) has a secured party take possession of all or substantially
all its assets or has a distress, execution, attachment, sequestration or other
legal process levied, enforced or sued on or against all or substantially all
its assets and such secured party maintains possession, or any such process is
not dismissed, discharged, stayed or restrained, in each case within 30 days
thereafter; (8) causes or is subject to any event with respect to it which,
under the applicable laws of any jurisdiction, has an analogous effect to any
of the events specified in clauses (1) to (7) (inclusive); or (9) takes any
action in furtherance of, or indicating its consent to, approval of, or
acquiescence in, any of the foregoing acts;

Intra-day Price
means at any time between [8.00 a.m. and 2.30 p.m.] on a Trading Day in respect
of a Commodity Contract, the Price, calculated in accordance with
Clause 5, using as Ii, t the most recent value of the relevant
Commodity Index published as of such time by Dow Jones provided, that (i) if the
Calculation Agent reasonably determines that such published value is incorrect,
the Calculation Agent shall instead use a special value of the relevant
Commodity Index calculated using the most recently reported prices for the
futures contracts by reference to the Settlement Price for which that Commodity
Index is calculated (in whole or in part), (ii) if the Calculation Agent
determines that as the result of a material trading disruption or anomaly the
value of any futures contract used in calculating such published value
manifestly does not reflect a fair market value for that futures contract
having regard to the principles set out in the Calculation Agency Agreement,
the Calculation Agent shall instead determine fair market values for such
futures contracts having regard to the principles set out in the Calculation
Agency Agreement and calculate a special value of the relevant Commodity Index
calculated using such fair market values and (iii) if the Calculation Agent
reasonably determines that a Market Disruption Event has occurred with respect
to any applicable futures contract, the Calculation Agent shall instead use a
special value of the relevant Commodity Index calculated using the most
recently reported prices for the relevant futures contracts, if any, that are
not subject to a Market Disruption Event and using a fair market value
determined in accordance

8

with the principles set out in the Calculation Agency Agreement for the
relevant commodity futures that are subject to a Market Disruption Event; 

Investment Company Act
means the Investment Company Act of 1940, as amended;

ISDA means the
International Swaps and Derivatives Association, Inc.; 

ISDA Agreements
mean the ISDA Master Agreement and all related documentation including the ISDA
Master Confirmation, Credit Support Annex, and any schedules thereto; 

ISDA Master Agreement
means the 2002 ISDA Master Agreement dated as of __________, 2011 entered into
by the Sponsor on behalf of the Funds with the Counterparty, including the
related Schedule negotiated by the Sponsor on behalf of the Funds and the
Counterparty, which agreement will be accompanied by a Credit Support Annex;

ISDA Master Confirmation
means the ISDA master confirmation dated as of ___________, 2011 entered into
by the Sponsor on behalf of the Funds with the Counterparty, which confirmation
will be subject to the ISDA Master Agreement and set forth the specific terms
of Commodity Contracts; 

law includes any
treaty, law, rule or regulation (as modified, in the case of tax matters, by
the practice of any relevant governmental revenue authority) and lawful and unlawful will be construed
accordingly; 

Lead Future means
(a) for an Individual Commodity Index and a Trading Day with respect thereto,
the particular Designated Contract which is the “Lead Future” (as defined in
the Handbook) for that Individual
Commodity Index on that Trading Day and (b) for a commodity comprised in a
Composite Commodity Index but which is not the subject of an Individual
Commodity Index and a Trading Day with respect thereto, the particular Designated
Contract which is the “Lead Future”
(as defined in the Handbook) for that commodity in relation to that Composite
Commodity Index on that Trading Day; 

Leveraged Commodity Contract means
a Leveraged Individual Commodity Contract;

Leveraged Fund
means a Fund listed under the heading “Leveraged Funds” in Schedule 1;

Leveraged Individual Commodity Contract means
a Commodity Contract of a class specified in Part D of Schedule 2;

Leveraged Individual Share means
as of the Effective Date a Share of a class specified in Part D of
Schedule 2 and thereafter shall include such additional classes of
Leveraged Individual Shares as the Trust may subsequently issue;

Leveraged Share means
a Leveraged Individual Share issued by a Leveraged Fund;

Long Commodity Contract means
a Long Individual Commodity Contract or a Long Index Commodity Contract;

Long Fund means
a Fund listed under the heading “Long Funds” in Schedule 1;

Long Share means
a Long Individual Share or a Long Index Share;

Long Index Commodity Contract means
a Commodity Contract of a class specified in Part C of Schedule 2;

Long Index Share
means a Share of a class specified in Part C of Schedule 2 ;

Long Individual Commodity Contract means
a Commodity Contract of a class specified in Part B of Schedule 2;

9

Long
Individual Share means a Share of a class
specified in Part B of Schedule 2;

Long
Share means a share issued by a Long Fund;

Market
Disruption Day means: 

	
  

 	
  

 	
  

 
	
  

 	
 (k)

 	
 in respect of an Individual Commodity Index, a General Trading Day
 which is a Trading Day for that Individual Commodity Index on which a Market
 Disruption Event occurs or is continuing in the Relevant Market on the
 Component Exchange for that Individual Commodity Index; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (l)

 	
 in respect of a Composite Commodity Index, a General Trading Day
which is a Trading Day in respect of each Designated Contract1
by reference to the Settlement Price for which that Composite Commodity Index
is calculated (in whole or in part) but on which a Market Disruption Event
occurs or is continuing in the Relevant Market on the Component Exchange for
any such Designated Contract;  

 
	
  

 	
  

 	
  

 
	
  

 	
 (m)

 	
 in respect of a Designated Contract the Settlement Price for which is
 included in the calculation of a Commodity Index, a General Trading Day which
 is a Trading Day for that Designated Contract and on which a Market
 Disruption Event occurs or is continuing in the Relevant Market on the
 Component Exchange on which that Designated Contract is traded; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (n)

 	
 in respect of a commodity in connection with a Commodity Index (or
 class of Short or Leveraged Shares), a Market Disruption Day for a Designated
 Contract in respect of that commodity the Settlement Price for which is
 included in the calculation of that Commodity Index (or the Commodity Index
 relating to that class of Shares);

 

Market
Disruption Event means:

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (o)

 	
 in respect of a particular Individual Commodity Index, any of the
 following events:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
  

 	
 the Component Exchange fails to determine, announce or publish the
 relevant Settlement Price(s); or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
  

 	
 the termination or suspension of, or material limitation or
 disruption in the trading of, any Lead Future or Next Future used in the
 calculation of an Individual Commodity Index; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
  

 	
 the Settlement Price of the Lead Future or Next Future used in the
 calculation of the Individual Commodity Index reflects the maximum permitted
 price change (as set from time to time by the Component Exchange for that
 Lead Future or Next Future) from the previous day’s Settlement Price;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (p)

 	
 in respect of any Composite Commodity Index means any event described
 in paragraphs (a)(i), (ii) or (iii) of this definition in relation to
 any Designated Contract the Settlement Price for which is included in the
 calculation of that Composite Commodity Index (and, for such purposes,
 references in sub-paragraphs (a)(ii) and (iii) of this definition to
 “any Lead Future or Next Future used in the calculation of an Individual
 Commodity Index” shall be construed, in relation to a commodity comprised in
 a Composite Commodity Index, as references to the Lead Future or Next Future
 with respect to that commodity the Settlement Price of which is used in the
 calculation of that Composite Commodity Index); and

 
	

 

 	

 

 	

 

 

1 Ie both Lead and Next

10

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (q)

 	
 in respect of a commodity in connection with a Commodity Index (or a
 class of Short or Leveraged Shares), any event described in
 sub-paragraph (a)(i), (ii) or (iii) of this definition in relation to
 the Designated Contract in respect of that commodity the Settlement Price of
 which is included in the calculation of that Commodity Index (or the
 Commodity Index relating to that class of Short or Leveraged Shares) (and,
 for such purposes, references in sub-paragraphs (a)(ii) and (iii) of
 this definition to “any Lead Future or Next Future used in the calculation of
 an Individual Commodity Index” shall be construed, in relation to such
 commodity, as references to the Lead Future or Next Future with respect to
 that commodity used in the calculation of that Commodity Index (or the
 Commodity Index relating to that class of Short or Leveraged Shares)),

 

in each case as determined by the Calculation Agent in accordance with
clause 6 or 7 of the Calculation Agency Agreement;

Material
Adverse Change means:

	
  

 	
  

 	
  

 
	
  

 	
 (r)

 	
 the adoption of, or any change in, any applicable law,
 legally-binding directive, or regulation, as a consequence of which the
 performance of this Agreement by either Party becomes unlawful; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (s)

 	
 by reason of the adoption of, or any change in, any applicable law,
 directive, regulation, accounting rule, practice or principle, or any Change
 in Tax Law, in each case after the date of this Agreement, or any change in
 the interpretation or application by any Competent Authority of any such
 applicable law, directive, regulation, rule, practice or principle, after the
 date of this Agreement, a Party considers (acting in good faith) that the
 economic benefit of its participation in any existing or future Commodity
 Contracts would be materially adversely affected;

 

Material Adverse Change Notice
has the meaning given in Clause 8.1;

Minimum Creation Amount
means such number of Commodity Contracts as is equal to the number of Shares
comprised in a Creation Unit for the relevant Fund; 

Month means
calendar month;

Net Exposure in
respect of any class of Commodity Contract, to any Relevant Commodity at any
time means the product of the Exposure to that Relevant Commodity and the Delta
Factor applicable to that class;

New York Business Day
means a day (other than a Saturday or a Sunday) on which banks are open for the
transaction of general business in New York;

Next Future means
(a) for an Individual Commodity Index and a Trading Day with respect thereto,
the particular Designated Contract which is the “Next Future” (as defined in
the Handbook) for that Individual
Commodity Index on that Trading Day and (b) for a commodity comprised in a
Composite Commodity Index but which is not the subject of an Individual
Commodity Index and a Trading Day with respect thereto, the particular Designated
Contract which is the “Next Future”
(as defined in the Handbook) for that commodity in relation to that Composite
Commodity Index on that Trading Day;

Notice Deadline means, on a
General Trading Day, 9.30 a.m. (provided that on any day when the time
difference between London and New York is six rather than five hours, the
Notice Deadline shall be 8.30 a.m.) or such other time notified by the
Counterparty to the Fund as the Notice Deadline in respect of a particular
General Trading Day or generally;

Notified Credit Limit
means a credit limit in respect of an Authorized Participant of which notice
has been given by the Counterparty to the Fund in accordance with Clause 7.10;

11

Party means a
party to this Agreement including that party’s successors in title and
assignees or transferees permitted in accordance with the terms of this
Agreement;

Payment Date
means:

	
  

 	
  

 	
  

 
	
  

 	
 (t)

 	
 in the case of a Creation pursuant to a Creation Notice or a
 Cancellation pursuant to a Cancellation Notice, the third [New York] Business
 Day following the Pricing Date for such Creation or Cancellation; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (u)

 	
 in the case of a Compulsory Cancellation, the Business Day which is
 the third Business Day following the last Pricing Day on which the Price of
 Commodity Contracts being Cancelled was determined in accordance with the
 Cancellation Procedures set out in Schedule 7;

 

Potential Fund Event of Default
means any event which, with the giving of notice or the lapse of time or both,
would constitute a Fund Event of Default or a Counterparty Event of Default;

Price means, for
a Commodity Contract or a class of Commodity Contracts, as the context may
require:

	
  

 	
  

 	
  

 
	
  

 	
 (v)

 	
 the price of such Commodity Contract or class of Commodity Contracts
 determined in accordance with Clause 5; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (w)

 	
 to determine such a price, 

 

and Pricing (other than when used in the
terms Pricing Day and Pricing Date) shall be construed accordingly; 

Pricing Date
means in the case of a Creation Notice or Cancellation Notice, the Pricing Day
upon which the Creation Amount or Cancellation Amount is determined.;

Pricing Day
means: 

	
  

 	
  

 	
  

 
	
  

 	
 (x)

 	
 for each class of Individual Commodity Contract, a General Trading
 Day which is a Trading Day for the Individual Commodity Index applicable to that
 class of Commodity Contract that is not a Market Disruption Day for that
 Individual Commodity Index (other than a Market Disruption Day for which a
 substitute value for that Individual Commodity Index is determined by the
 Calculation Agent [in accordance with the Calculation Agency Agreement]); 

 
	
  

 	
  

 	
  

 
	
  

 	
 (y)

 	
 for each class of Index Commodity Contracts, a General Trading Day
 which is a Trading Day for each of the Designated Contracts by reference to
 the Settlement Price for which the Composite Commodity Index relating to that
 class of Index Commodity Contract is calculated (in whole or in part) that is
 not a Market Disruption Day for any such Designated Contracts (other than a
 Market Disruption Day for which a substitute value for that Composite
 Commodity Index is determined by the Calculation Agent [in accordance with
 the Calculation Agency Agreement]); 

 
	
  

 	
  

 	
  

 
	
  

 	
 (z)

 	
 for each Designated Contract the Settlement Price for which is
 included in the calculation of a Commodity Index, a General Trading Day which
 is a Trading Day for that Designated Contract and which is not a Market
 Disruption Day for that Designated Contract; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (aa)

 	
 for each commodity in connection with a Commodity Index (or class of
 Short, Long or Leveraged Shares), a General Trading Day which is a Trading
 Day for the Designated Contracts relating to that commodity the Settlement
 Price for which is included in the calculation of that Commodity Index (or
 that class of Shares) and which is not a Market Disruption Day for that
 Designated Contracts;

 

12

Pricing Notice
means a Creation Notice, a Cancellation Notice, a Withdrawal Notice, or any
other notice required to be given or sent in accordance with Clause 25.1;

Primary Fax Number
means a fax number set out in Clause 24.1, or any replacement thereof
notified in accordance with Clause 24.4;

Property to be Assigned
means with respect to each Applicable Authorized Participant Agreement:

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (bb)

 	
 all of the right, title, interest and benefit of the Fund, existing
 now or in the future, in, to, under or in respect of the Applicable
 Authorized Participant Agreement; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (cc)

 	
 all other rights, moneys and property whatsoever which may from time
 to time at any time be derived from or accrue with respect to the Applicable
 Authorized Participant Agreement including:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
  

 	
 all of the Fund’s rights to receive payment of any amounts which may
 become payable to it pursuant to the Applicable Authorized Participant
 Agreement or with respect to the Applicable Authorized Participant Agreement;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
  

 	
 all amounts due, payable and properly received by the Fund pursuant
 to such Applicable Authorized Participant Agreement;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
  

 	
 all the Fund’s rights to serve notices and/or make demands pursuant
 to such Applicable Authorized Participant Agreement and/or to take such steps
 as are required to cause payments to become due and payable thereunder or
 with respect to such Applicable Authorized Participant Agreement;

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iv)

 	
  

 	
 all of the Fund’s rights of action in respect of any breach of such
 Applicable Authorized Participant Agreement; and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (v)

 	
  

 	
 all of the Fund’s rights to receive damages or obtain other relief in
 respect of such Applicable Authorized Participant Agreement;

 

Prospectus means the
prospectus relating to the Funds that is currently part of the effective
Registration Statement, as such prospectus may be amended or supplemented;

Qualified Purchaser
means a “qualified purchaser” as defined under the Investment Company Act;

Redemption means
the redemption of Shares by the Fund in accordance with [the Trust Agreement] and
any Applicable Authorized Participant Agreement (and Redeem shall be construed accordingly);

Redemption Account means a bank
account to receive payments of the Redemption Amount in respect of the Redemption
of Commodity Contracts (and matching Shares), which account shall be:

	
  

 	
  

 	
  

 
	
  

 	
 (dd)

 	
 for an Authorized Participant, the bank account notified in writing
 by the Authorized Participant to the Fund and the Counterparty from time to
 time;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ee)

 	
 for a Compulsory Cancellation, the bank account notified by the Fund
 pursuant to Clause 13.1; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (ff)

 	
 otherwise, the bank account specified in a Settlement Cancellation
 Notice;]

 

Redemption Limit
means the limit on Cancellation set out in paragraph 12 of Schedule 7;

Registers means
the registers of Shareholders of each Fund, kept and maintained by the
Registrar and Register shall be construed accordingly;

13

Registrar means
[                         ]
or such other person as may be appointed by the Trust from time to time to
maintain the Registers, to receive and process applications for Shares and to
receive and process applications for Redemptions of Shares; 

Registration Statement means the
Registration Statement of the Trust on Form S-1 in respect of the Shares, as
amended (Registration No.: [     ]), as declared
effective by the SEC and as the same may be amended from time to time
thereafter or any successor registration statement;

Relevant Authorized Participant means, in respect of an actual or purported Creation
or Cancellation, the Authorized Participant referred to in
paragraph 1(b) of Schedule 6 in connection with that Creation or
paragraph 1(b) of Schedule 7 in connection with that Cancellation;

Relevant Commodities
means, in respect of any class of Index Commodity Contracts, the commodities
the Settlement Prices of Designated Contracts relating to which are included in
the calculation of the Composite Commodity Index relating to that class of
Index Commodity Contracts and “Relevant Commodity” means (i) in respect of any
class of Index Commodity Contracts any of the Relevant Commodities; and (ii) in
respect of any class of Individual Commodity Contracts means the commodity the
Settlement Price(s) of Designated Contract(s) relating to which are included in
the calculation of the Individual Commodity Index relating to that class of
Individual Commodity Contracts;

Relevant Market means
(a) in respect of an Individual Commodity Index, the market conducted on the
Component Exchange for the Designated Contracts by reference to which the
Individual Commodity Index is calculated and (b) in relation to a commodity
comprised in a Composite Commodity Index, the market conducted on the Component
Exchange for the Designated Contract for that commodity the Settlement Price
which is included in the calculation of that Composite Commodity Index;

Relevant Pricing Day
means, in respect of a class of Commodity Contract, upon Creation or
Cancellation pursuant to a Creation Notice or a Cancellation Notice the day on
which that class is Priced in accordance with paragraph 4 of Schedule 6 or
paragraph 4 of Schedule 7;

Required Security Document
means, with respect to an Applicable Authorized Participant Agreement (other
than any deemed to have been entered into between the Fund and the Counterparty
in circumstances where the Counterparty has entered into an Authorized
Participant Agreement with the Fund in relation to Commodity Securities), each
security that the Counterparty requires the Fund to execute over the Property
to be Assigned in favor of the Counterparty as security for the Secured
Obligations (which may include, but shall not be limited to, a Security
Assignment), having regard to the jurisdiction of incorporation of the
Authorized Participant (or proposed Authorized Participant) or of the branch
through which such person is acting for the purposes of such Applicable
Authorized Participant Agreement (as the case may be);

Secured Obligations
means: 

	
  

 	
  

 	
  

 
	
  

 	
 (gg)

 	
 all present and future obligations (which, for the avoidance of
 doubt, are all limited recourse obligations) of the Fund to the Counterparty
 on account of Creation Amounts and interest thereon; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (hh)

 	
 all losses, damages, legal and other costs, charges and expenses
 sustained, suffered or incurred by the Counterparty arising out of or in
 connection with any act, matter or thing done or omitted to be done by the
 Fund under this Agreement or the Security Assignment or any other Required
 Security Document;

 

Securities
Act means the Securities Act of 1933 of the USA;

14

 [Security Agreement
means the Security Agreement between the Trust and the Counterparty of even
date herewith expressed to be supplemental to this Agreement;]

 [Security Assignment
means, in respect of each Applicable Authorized Participant Agreement (other
than any deemed to have been entered into between the Fund and the Counterparty
in circumstances where the Counterparty has entered into an Authorized
Participant Agreement with the Fund in relation to Commodity Securities), the
Security Assignment pertaining to that Applicable Authorized Participant
Agreement dated on or about the date of that Applicable Authorized Participant
Agreement entered into between the Fund and the Counterparty which is
substantially in the form of the agreed form;]

Security Conditions means,
with respect to a proposed Authorized Participant (other than the Counterparty
in circumstances where the Counterparty has entered into or is proposing to
enter into an Authorized Participant Agreement with the Fund in relation to
Commodity Securities), that (a) each Required Security Document with respect to
the relevant Applicable Authorized Participant Agreement has been duly executed
by the Fund, (b) notice (duly executed by the Fund) of each such Required
Security Document has been duly given by the Fund to such proposed Authorized
Participant and (c) such proposed Authorized Participant has executed an
acknowledgement of such notice in favor of the Counterparty;

Service Agent
means an agent to receive service of documents appointed in accordance with
Clause [22];

Settlement Failure means either a
Counterparty Settlement Failure or a Fund Settlement Failure;

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

Settlement Failure Party means, in
relation to a Settlement Failure, (a) the Counterparty if the Settlement
Failure is a Counterparty Settlement Failure or (b) the Fund if the Settlement
Failure is an AP Settlement Failure;

Settlement Price means,
in relation to any Pricing Day and a Designated Contract traded on a Component
Exchange, the official settlement price of the Component Exchange for such day
in relation to such Designated Contract as determined in accordance with the
regulations of the Component Exchange;

Shareholder means
a registered holder of Shares; 

Shares means
Short Shares, Long Shares and Leveraged Shares;

Short Commodity Contract means
a Short Individual Commodity Contract;

Short Fund means a
Fund listed under the heading “Short Funds” in Schedule 1;

Short Share means
a Short Individual Share;

Short Individual Commodity Contract means
a Commodity Contract of a class specified in Part A of Schedule 2;

Short Individual Share means
as of the Effective Date a Share of a class specified in Part A of Schedule 2
and thereafter shall include such additional classes of Short Individual Shares
as the Trust may subsequently issue;

Strategy means
each of the two groups of Commodity Contracts (and their corresponding Shares)
provided for in this Agreement, being Short Commodity Contracts and Leveraged
Commodity Contracts, and Strategies
will be construed accordingly;

15

Theoretical Hedge Position means
in respect of a particular Designated Contract, the number calculated in
accordance with Clause 5.7; 

Trading
Day means: 

	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 for an Individual Commodity Index, a day on which the Component
 Exchange for that Individual Commodity Index is open for trading during its
 regular trading session, notwithstanding such Component Exchange closing
 prior to its scheduled closing time; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (jj)

 	
 for a Composite Commodity Index a day on which all the Component
 Exchanges for each commodity comprised in that Composite Commodity Index are
 open for trading during their regular trading session, notwithstanding any of
 such Component Exchanges closing prior to their scheduled closing time;

 
	
  

 	
  

 	
  

 
	
  

 	
 (kk)

 	
 for a Designated Contract the Settlement Price of which is included
 in the calculation of a Commodity Index, a day on which the Component
 Exchange for that Designated Contract is open for trading during its regular
 trading session, notwithstanding such Component Exchange closing prior to its
 scheduled closing time; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (ll)

 	
 for a commodity in connection with a Commodity Index (or class of
 Short, Long or Leveraged Shares), a Trading Day (pursuant to
 sub-paragraph (c) above) for a Designated Contract in respect of that
 commodity the Settlement Price for which is included in the calculation of
 that Commodity Index (or the Commodity Index relating to that class of Short,
 Long or Leveraged Shares);

 

Sponsor means
ETF Securities USA LLC, a Delaware limited liability company that is the
sponsor of the trust.

 [Sponsor’s Fee means
the fixed fee rate that accrues daily to the Sponsor in consideration for the
provision of all management and administrative services for the Fund, which fee
is a component of the Daily Capital Adjustment and may vary among the
Funds.[S1];]

Trust Agreement
means the Trust Agreement between the Sponsor and the Trustee under which the
Trust is formed and which sets forth the rights and duties of the Sponsor and
the Trustee;

Trustee means
[               ]
and any replacement trustee under the Trust Agreement;

Unacceptable Authorized Participant
means an Authorized Participant in respect of which a notice has been given
under Clause 7.8 and not withdrawn under Clause 7.9;

US Dollars or US$ means the lawful currency of the USA;

US Person means
a “US person” as defined in Regulation S under the Securities Act;

USA means the
United States of America;

Value means, in
relation to a Commodity Security and a day, the Price of a Commodity Contract
of the same class as that Commodity Security on that same day; and

Withdrawal Notice means a notice
in the form attached as Schedule 8 (or such other form as may be agreed between
the Trust and the Counterparty from time to time), and sent or to be sent under
paragraphs 4 or 11 of Schedule 6 or paragraph 4 of Schedule 7. 

16

Interpretation

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

	
  

 	
  

 	
  

 	
  

 
	
 (a)

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

 
	
  

 	
  

 	
  

 
	
 (b)

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

 
	
  

 	
  

 	
  

 
	
 (c)

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

 
	
  

 	
  

 	
  

 
	
 (d)

 	
 Any reference to a Clause or Schedule is a reference to a clause or
 Schedule of this Agreement.

 
	
  

 	
  

 	
  

 
	
 (e)

 	
 Any reference in a Schedule to a paragraph is (unless otherwise
 specified) a reference to a paragraph of that Schedule.

 
	
  

 	
  

 	
  

 
	
 (f)

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

 
	
  

 	
  

 	
  

 
	
 (g)

 	
 References to a document or agreement being in the agreed form are to
 that document or agreement (or a draft thereof) being in a form initialed for
 identification purposes by or on behalf of each of the Parties on or about
 the date hereof.

 
	
  

 	
  

 	
  

 
	
 (h)

 	
 Any reference in this Agreement to any statute or any provision of any
 statute includes a reference to any statutory modification or re-enactment
 thereof or any statutory instrument, order or regulation made thereunder or
 under any such modification or re-enactment.

 
	
  

 	
  

 	
  

 
	
 (i)

 	
 Unless otherwise indicated, any reference in this Agreement to a time
 is a reference to local time (Eastern) in New York, NY, USA.

 
	
  

 	
  

 	
  

 
	
 (j)

 	
 In the event of any inconsistency between:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
  

 	
 this Agreement, any agreement or document referred to herein or any
 notice given pursuant hereto (including any Pricing Notice); and 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
  

 	
 the ISDA Master Agreements (including the Master Confirmation
 Agreement and each Transaction Confirmation Supplement),

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 the terms of the [ISDA Master Agreement], shall prevail, [save in the
 case of a conflict between any relevant Transaction Confirmation Supplement
 and the corresponding valid Pricing Notice issued in accordance with this
 Agreement as to the economic terms of any relevant Commodity Contract. To the
 extent of such conflict, the economic terms of that Commodity Contract shall
 be conclusively determined by reference to such valid Pricing Notice.]

 

Non Waiver

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

17

Consequence of unenforceability

1.4 Subject always to Clause 8, if at any time any provision of
this Agreement shall be found by any court or administrative body of competent
jurisdiction to be invalid, illegal or unenforceable:

	
  

 	
  

 
	
 (a)

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

 
	
  

 	
  

 
	
 (b)

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

 

2. Effectiveness and Term

2.1 This Agreement shall come into effect on the Effective Date and
shall continue in effect until terminated in accordance with Clause 9.

3. Creation and Cancellation of Commodity
Contracts

3.1 During the term of this Agreement, each Fund has the right, subject
to the conditions of this Agreement, to Create Commodity Contracts of the
classes of Commodity Contracts corresponding to such Fund as set out in
Schedule 3 of this Agreement.

3.2 Upon a Creation Notice becoming both valid in accordance with
paragraph 6 of Schedule 6 and becoming incapable of being cancelled under
paragraph 4 of Schedule 6 the Equivalent Number of Commodity Contracts
determined in accordance with the Creation Notice shall be automatically
entered into between the Counterparty and the Fund, under and on the terms of
the relevant ISDA Agreements.

3.3 Where
Commodity Contracts are Created:

	
  

 	
  

 
	
 (a)

 	
 on the Payment Date for such Creation, pursuant to the terms of the
 applicable Direct Agreement, the applicable Authorized Participant shall make
 payment to the Counterparty, on behalf of the Fund, of the Creation Amount in
 respect of that Creation; and

 
	
  

 	
  

 
	
 (b)

 	
 upon a Cancellation Notice becoming both valid in accordance with
 paragraph 6 of Schedule 7 and incapable of being cancelled under
 paragraph 4 of Schedule 7, pursuant to the terms of the applicable
 Direct Agreement, the Counterparty shall on the Payment Date for such
 Cancellation pay to the applicable Authorized Participant, on behalf of the
 Fund, the Cancellation Amount in respect of that Cancellation. On such Cancellation
 Amount being paid, the Commodity Contracts to which such Cancellation Amount
 relates shall, on the terms of the ISDA Agreements, be automatically
 terminated.

 

3.4 Each of the Fund and the Counterparty shall comply with the
provisions of Schedule 6 and Schedule 7. It is the intention of the Parties to
develop web-based systems for the giving of pricing notices in electronic form.
If such systems are developed, the Parties may make such amendments to this
Agreement (including to the Schedules hereto) as the Parties may agree at the
relevant time to accommodate such systems

4. Classes of Commodity Contracts

The classes of Commodity Contracts which may be Created by each Fund
under this Agreement and the Commodity Indices applicable to each class as of the
Effective Date are set out in Schedules 2 and 3 respectively.

18

5. Price of Commodity Contracts

5.1 The Price for the first Commodity Contract of a particular class to
be Created (which shall be treated as being the Price for the day on which the
Creation Notice in respect thereof is received or deemed to have been received
by the Counterparty) shall be [$50.0000000]. Thereafter the Price for a
Commodity Contract of each class shall be calculated on each calendar day in
accordance with Clauses 5.2 to 5.4 below; save that:

	
  

 	
  

 
	
 (a)

 	
 in relation to an Index Commodity Contract, an Indicative Price shall
 be calculated in accordance with Clause 5.5 for any calendar day which
 is for the Composite Commodity Index applicable to that Index Commodity
 Contract: (i) a Market Disruption Day; or (ii) a day (not being a
 Pricing Day) where the preceding day which is both a Trading Day and a
 General Trading Day was a Market Disruption Day, and, subject to (c) below,
 on each such day no Price shall be calculated for the relevant class of Index
 Commodity Contract;

 
	
  

 	
  

 
	
 (b)

 	
 in relation to an Index Commodity Contract, for a Pricing Day where
 the preceding Trading Day which is a General Trading Day for the Composite
 Commodity Index applicable to that Index Commodity Contract was a Market
 Disruption Day, the Price for such day shall be calculated in accordance with
 Clause 5.6 below; 

 
	
  

 	
  

 
	
 (c)

 	
 upon a Creation Notice or Cancellation Notice being deemed received
 in relation to a class of Index Commodity Contract on a Trading Day which is
 a General Trading Day but not a Pricing Day then a Price shall be determined
 for that class of Index Commodity Contract in accordance with Clause 5.8
 solely for the purposes of the Creation or Cancellation pursuant to that
 Creation Notice or Cancellation Notice (and, for the avoidance of doubt, that
 Price shall not be considered a Price for any other purpose under this
 Clause 5); and

 
	
  

 	
  

 
	
 (d)

 	
 upon a Creation Notice or Cancellation Notice being deemed received
 in relation to a class of Individual Commodity Contract on a Trading Day
 which is a General Trading Day but not a Pricing Day Clause 5.9 shall
 apply.

 

Pricing

5.2 Subject to Clause 5.1 above, the Price of a Commodity Contract
of a particular class for each calendar day will be an amount (which may not be
negative) determined using the relevant Commodity Index for that class by the
following formula (calculated to 7 places of decimals with 0.00000005 rounded
upwards):

	
  

 	
  

 	
  

 
	
  

 	
 

 
	
  

 	
  

 	
  

 
	
  

 	
 where:

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Pi,t

 	
 is the Price of a Commodity Contract of class i for day t;

 
	
  

 	
  

 	
  

 
	
  

 	
 Pi,t-1

 	
 is the Price of a Commodity Contract of class i for day t-1;

 
	
  

 	
  

 	
  

 
	
  

 	
 i

 	
 refers to the relevant class of Commodity Contract;

 
	
  

 	
  

 	
  

 
	
  

 	
 t

 	
 refers to the applicable calendar day;

 
	
  

 	
  

 	
  

 
	
  

 	
 t-1

 	
 refers to the calendar day prior to day t;

 
	
  

 	
  

 	
  

 
	
  

 	
 CAi,t

 	
 is the Capital Adjustment applicable to class i on day t, expressed
 as a decimal;

 
	
  

 	
  

 	
  

 
	
  

 	
 DFi

 	
 is the Delta Factor applicable to class i, expressed as a number.;

 

19

	
  

 	
  

 	
  

 
	
  

 	
 Ii,t

 	
 is the closing settlement price level of the Commodity Index
 applicable to a Commodity Contract of class i for day t. If day t is not a
 Pricing Day for a Commodity Contract of class i, then Ii,t will be
 the same as Ii,t-1; and

 
	
  

 	
  

 	
  

 
	
  

 	
 I i,t-1

 	
 is the closing settlement price level of the Commodity Index
 applicable to a Commodity Contract of class i for day t-1.

 

5.3 For an Individual Commodity Contract if t-1 is not a Pricing Day
then Ii,t-1 shall be the closing settlement price level of the
Individual Commodity Index applicable to an Individual Commodity Contract of
class i on the preceding Pricing Day.

5.4 For an Index Commodity Contract, if t-1 is not a Pricing Day then Ii,t-1
shall be the closing settlement price level of the Composite Commodity
Index applicable to an Index Commodity Contract of class i on the last day
preceding day t-1 which is both a General Trading Day and a Trading Day
for that Composite Commodity Index.

Indicative Pricing during Market Disruptions

5.5 For an Index Commodity Contract, if t is a day which is (a) a
Market Disruption Day for the Composite Commodity Index applicable to that
Index Commodity Contract or (b) a calendar day (not being a Pricing Day)
and the day which is both a Trading Day (for that Composite Commodity Index)
and a General Trading Day preceding day t was a Market Disruption Day then the
Indicative Price of such Index Commodity Contract shall be as follows:

	
  

 	
  

 	
  

 
	
  

 	
 Calculation of
 Indicative Price on an initial Market Disruption Day

 
	
  

 	
  

 	
  

 
	
  

 	
 (i) on a day which is a Market Disruption
 Day for the Composite Commodity Index by reference to which the Price of a
 class of Index Commodity Contract is calculated and where the preceding day
 which is both a Trading Day and a General Trading Day was also a Pricing Day
 for such Composite Commodity Index (such Market Disruption Day being “Market
 Disruption Day 1”), the Indicative Price of an Index Commodity Contract of
 any class shall be determined in accordance with the following formula
 calculated to 7 places of decimals with 0.00000005 rounded upwards):

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 

 

	
  

 	
  

 	
  

 
	
  

 	
 where:

 
	
  

 	
  

 	
  

 
	
  

 	
 IPi,t

 	
 is the Indicative Price of an Index Commodity Contract of class i for
 day t;

 
	
  

 	
  

 	
  

 
	
  

 	
 Pi,t-1

	
 is the Price of an Index Commodity Contract of class i for day t-1;

 
	
  

 	
  

 	
  

 
	
  

 	
 I

 	
 refers to the relevant class of Index Commodity Contract;

 
	
  

 	
  

 	
  

 
	
  

 	
 T

 	
 refers to the applicable calendar day (t=1 being Market Disruption
 Day 1);

 
	
  

 	
  

 	
  

 
	
  

 	
 t-1

 	
 refers to the calendar day prior to day t;

 
	
  

 	
  

 	
  

 
	
  

 	
 CAi,t

 	
 is the Capital Adjustment applicable to class i on day t;

 
	
  

 	
  

 	
  

 
	
  

 	
 DFi

 	
 is the Delta Factor applicable to class i, expressed as a number.

 
	
  

 	
  

 	
  

 
	
  

 	
 Ii,t

 	
 is the closing settlement price level of the Composite Commodity
 Index 

 

20

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 applicable to an Index Commodity Contract of class i for day t; and

 
	
  

 	
  

 	
  

 
	
  

 	
 Ii,t-1

 	
 is the closing settlement price level of the Commodity Index
 applicable to an Index Commodity Contract of class i for day t-1. If day t-1
 is not a Pricing Day then Ii,t-1 shall be the closing
 price level of the Composite Commodity Index applicable to an Index Commodity
 Contract of class i on the immediately preceding Pricing Day,

 

	
  

 	
  

 	
  

 
	
  

 	
 and

 
	
  

 	
  

 	
  

 
	
  

 	
 Calculation
 of Indicative Price on a calendar day following initial Market Disruption Day

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii) on any calendar day not falling within
 sub-paragraph (i) above for which an Indicative Price in respect of a
 class of Index Commodity Contracts is required to be calculated hereunder,
 the Indicative Price of an Index Commodity Contract of that class shall be
 determined in accordance with the following formula (calculated to 7 places
 of decimals with 0.00000005 rounded upwards):

 
	
  

 	
  

 
	
  

 	
  

 	
  

 

	
  

 	
  

 	
  

 
	
  

 	
 where:

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 IPi,t

 	
 is the Indicative Price of an Index Commodity Contract of class i for
 day t;

 
	
  

 	
  

 	
  

 
	
  

 	
 IPi,t-1

 	
 is the Indicative Price of an Index Commodity Contract of class i for
 day t-1 (calculated for t-1 in the same manner as for day t in accordance
 with sub-paragraph (i) or this sub-paragraph (ii));

 
	
  

 	
  

 	
  

 
	
  

 	
 i

 	
 refers to the relevant class of Commodity Contract;

 
	
  

 	
  

 	
  

 
	
  

 	
 t

 	
 refers to the applicable calendar day;

 
	
  

 	
  

 	
  

 
	
  

 	
 t-1

 	
 refers to the calendar day prior to t;

 
	
  

 	
  

 	
  

 
	
  

 	
 CAi,t

 	
 is the Capital Adjustment applicable to class i on day t;

 
	
  

 	
  

 	
  

 
	
  

 	
 NC

 	
 means the total number of commodities in the relevant Composite
 Commodity Index;

 
	
  

 	
  

 	
  

 
	
  

 	
 u

 	
 is a commodity the Settlement Price of a Designated Contract relating
 to which is used in calculating the Composite Commodity Index to which the
 relevant Index Commodity Contract relates;

 
	
  

 	
  

 	
  

 
	
  

 	
 j

 	
 in relation to a commodity u, is either a Lead Future or a Next
 Future and where j=1 it is a Lead Future and where j=2 it is a Next Future;

 

21

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 HP

 	
 u

 	
  

 	
 is the Theoretical Hedge Position for Designated Contract j of
 commodity u in respect of Index Commodity Contract i on day t-1 calculated in
 accordance with Clause 5.7, save that where t-1 is not both a Trading
 Day for the relevant Composite Commodity Index and a General Trading Day then
 it shall be the Theoretical Hedge Position for such Designated Contract on
 the first day prior to day t-1 which is both a Trading Day for the relevant
 Composite Commodity Index and a General Trading Day;

 
	
  

 	
 i,t-1,j

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 WAV

 	
 u

 	
  

 	
 means the weighted value for Designated Contract j of commodity u on
 day t used for calculating the relevant Composite Commodity Index calculated
 in accordance with the Handbook, provided that where day t is not both a
 Trading Day for that Composite Commodity Index and a General Trading Day then
 it shall be equal to ;

 
	
  

 	
 t,j

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 WAV

 	
 u

 	
  

 	
 means the weighted value for Designated Contract j of commodity u on
 day t-1 used for calculating the relevant Composite Commodity Index
 calculated in accordance with the Handbook, provided that where day
 t-1 is not both a Trading Day for that Composite Commodity Index and a
 General Trading Day then it shall be the weighted value for such Designated
 Contract on the first day prior to day t-1 which is both a Trading Day for
 that Composite Commodity Index and a General Trading Day;

 
	
  

 	
 t-1,j

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CIM

 	
 u

 	
  

 	
 means the Commodity Index Multiplier (as defined in the Handbook from
 time to time) on day t for Designated Contract j of commodity u, provided
 that where day t is not both a Trading Day for the relevant
 Composite Commodity Index and a General Trading Day then it shall be equal to
 ; and

 
	
  

 	
 t,j

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CIM

 	
 u

 	
  

 	
 means the Commodity Index Multiplier (as defined in the Handbook from
 time to time) on day t-1 for Designated Contract j of commodity u, provided
 that where day t-1 is not both a Trading Day for the relevant Composite
 Commodity Index and a General Trading Day then it shall be equal to the
 Commodity Index Multiplier for such Designated Contract on the first day
 prior to day t-1 which is both a Trading Day for that Composite Commodity
 Index and a General Trading Day;

 
	
  

 	
 t-1,j

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 

	
  

 	
  

 	
  

 
	
  

 	
        and

 
	
  

 	
  

 	
  

 
	
  

 	
 Cessation of
 calculation of Indicative Price

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii) the Indicative Price of an Index
 Commodity Contract of any class shall cease to be calculated pursuant to (ii)
 above on the first day following Market Disruption Day 1 which is a Pricing
 Day for the Composite Commodity Index applicable to that class of Index
 Commodity Contract and the Price on such Pricing Day shall be calculated in
 accordance with Clause 5.6.

 

22

Pricing after Market Disruption Events

5.6 For an Index Commodity Contract, if t is a Pricing Day and the
preceding Trading Day which is a General Trading Day for the Composite
Commodity Index applicable to that Index Commodity Contract was a Market
Disruption Day then the Price of such Index Commodity Contract shall be
determined in accordance with the following formula (calculated to 7 places of
decimals with 0.00000005 rounded upwards):

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	
  

 	
 where

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 P i,t

 	
  

 	
 is the Price of an Index Commodity Contract of class i for day t;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 IPi,t-1

 	
  

 	
 is the Indicative Price of an Index Commodity Contract of class i for
 day t-1;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 I

 	
  

 	
 refers to the relevant class of Index Commodity Contract;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 t

 	
  

 	
 refers to the applicable calendar day;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 t-1

 	
  

 	
 refers to the calendar day prior to day t;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CAi,t

 	
  

 	
 is the Capital Adjustment applicable to class i for day t;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 NC

 	
  

 	
 means the total number of commodities in the relevant Composite
 Commodity Index;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 HP

 	
 u

 	
  

 	
 means the Theoretical Hedge Position for Designated Contract j of
 commodity u in respect of Index Commodity Contract i on day t-1, save that where day t-1 is
 not both a Trading Day for the applicable Composite Commodity Index and a
 General Trading Day then it shall mean the Theoretical Hedge Position for
 such Designated Contract on the day preceding t-1 which is both a Trading Day
 for the relevant Composite Commodity Index and a General Trading Day;

 
	
  

 	
 i,t–1,j

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 u

 	
  

 	
 is a commodity the Settlement Price of a Designated Contract relating
 to which is used in calculating the Composite Commodity Index to which the
 relevant Index Commodity Contract relates;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 j

 	
  

 	
 in relation to a commodity u, is either a Lead Future or a Next
 Future and where j=1 it is a Lead Future and where j=2 it is a Next Future;

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 WAV

 	
 u

 	
  

 	
 means the weighted value for Designated Contract j of commodity u on
 day t used for calculating the relevant Composite Commodity Index calculated
 in accordance with the Handbook;

 
	
  

 	
 t,j

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 WAV

 	
 u

 	
  

 	
 means the weighted value for Designated Contract j of commodity u on
 day t-1 used for calculating the relevant Composite Commodity Index
 calculated in accordance with the Handbook and where day t-1 is not a Trading
 Day for that Composite Commodity Index which is a General Trading Day then it
 shall be the weighted value for such Designated Contract used to calculate
 the last published relevant value of the Composite Commodity Index on the
 first day prior to day t-1 which is both a Trading Day for that Composite
 Commodity Index and a General Trading Day;

 
	
  

 	
 t–1,j

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 

23

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CIM

 	
 u

 	
  

 	
 means the Commodity Index Multiplier (as defined in the Handbook from
 time to time) on day t for Designated Contract j of commodity u; and

 
	
  

 	
 t,j

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CIM

 	
 u

 	
  

 	
 means the Commodity Index Multiplier (as defined in the Handbook from
 time to time) on day t-1 for Designated Contract j of commodity u and where day t-1 is not a Trading
 Day for that Composite Commodity Index which is a General Trading Day then it shall be equal to the
 Commodity Index Multiplier for such Designated Contract on the first day prior to day t-1
 which is both a Trading Day for that Composite Commodity Index and a General
 Trading Day.

 
	
  

 	
 t–1,j

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 

Theoretical Hedge Position

5.7 For the purposes of Clauses 5.5 and 5.6 the Theoretical Hedge
Position in respect of a particular Designated Contract and commodity shall be
as follows:

	
  

 	
  

 	
  

 
	
  

 	
 Theoretical Hedge
 Position on a Pricing Day

 
	
  

 	
  

 	
  

 
	
  

 	
 (i) on any day which is a Pricing Day for the Index Commodity
 Contract of class i shall be the number determined in accordance with
 the following formula:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 where:

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 HP

 	
 u

 	
  

 	
 means the Theoretical Hedge Position for Designated Contract j of
 commodity u in respect of Index Commodity Contract i on day t;

 	
  

 
	
  

 	
 i,t,j

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 i

 	
  

 	
 refers to the relevant class of Commodity Contract;

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 t

 	
  

 	
 refers to the applicable calendar day;

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 j

 	
  

 	
 in relation to commodity u, is either a Lead Future or a Next Future
 and where j=1 it is a Lead Future and where j=2 it is a Next Future;

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 u

 	
  

 	
 is a commodity the Settlement Price of a Designated Contract relating
 to which is used in calculating the Composite Commodity Index to which the
 Index Commodity Contract relates;

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 DFi

 	
  

 	
 is the Delta Factor applicable to class i, expressed as a number;

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Pi,t

 	
  

 	
 is the Price of an Index Commodity Contract of class i for day t;

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CIM

 	
 u

 	
  

 	
 means the Commodity Index Multiplier (as defined in the Handbook from
 time to time) on day t for Designated Contract j of commodity u;

 	
  

 
	
  

 	
 t,j

 	
  

 

24

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 RW

 	
 u

 	
  

 	
 means the roll weight applicable to Designated Contract j on day t in
 respect of commodity u, being a value of either 0, 0.2, 0.4, 0.6, 0.8 or 1 as
 determined in accordance with the Handbook, to be used in the calculation of
 the relevant Composite Commodity Index on the following Trading Day for the
 relevant Commodity Index;

 	
  

 
	
  

 	
 t,j

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 RW

 	
 v

 	
  

 	
 means the roll weight applicable to Designated Contract k on day t in
 respect of commodity v, being a value of either 0, 0.2, 0.4, 0.6, 0.8 or 1 as
 determined in accordance with the Handbook, to be used in the calculation of
 the relevant Composite Commodity Index on the following Trading Day for the
 relevant Commodity Index;

 	
  

 
	
  

 	
 t,k

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 NC

 	
  

 	
 means the total number of commodities in the relevant Composite
 Commodity Index;

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 v

 	
  

 	
 means each commodity in the relevant Composite Commodity Index;

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 k

 	
  

 	
 in relation to a commodity v, is either a Lead Future or a Next
 Future and where k=1 it is a Lead Future and where k=2 it is a Next Future;
 and

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 WAV

 	
 v

 	
  

 	
 means the weighted value for Designated Contract k of commodity v on
 day t used for calculating the relevant Composite Commodity Index calculated
 in accordance with the Handbook,

 	
  

 
	
  

 	
 t,k

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 or

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Theoretical Hedge
 Position on a Market Disruption Day

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (ii) on a day which is a Market Disruption Day for one or more
 commodities of the relevant Composite Commodity Index:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (1)

 	
 for those
 commodities for which it is not a Market Disruption Day shall be the number
 calculated using the formula set out in Sub-Clause (i) above, save that
 the value Pi,t shall be replaced with IPi,t being the
 Indicative Price of an Index Commodity Contract of class i for day t
 calculated in accordance with Clause 5.5 above; and

 
	
  

 
	
  

 
	
  

 	
  

 	
 (2)

 	
 for those
 commodities for which it is a Market Disruption Day shall be the number
 determined in accordance with the following formula:

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 HP

 	
 u

 	
 =

 	
 HP

 	
 u

 
	
  

 	
 i,t,j

 	
 i,t–1,j

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 where:

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 HP

 	
 u

 	
  

 	
 means the Theoretical Hedge Position for Designated Contract j of
 commodity u in respect of Index Commodity Contract i on day t;

 
	
  

 	
 i,t,j

 	
  

 

25

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 HP

 	
 u

 	
  

 	
 means the Theoretical Hedge Position for Designated Contract j of
 commodity u in respect of Index Commodity Contract i on day t-1, save that when
 t-1 is not both a Trading Day for the relevant Composite Commodity Index and
 a General Trading Day then it shall be the Theoretical Hedge Position for
 such Designated Contract on the first day prior to day t-1 which is both a
 Trading Day for the relevant Composite Commodity Index and a General Trading
 Day.

 
	
  

 	
 i,t–1,j

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 

Creations and Cancellations during Market
Disruption Days

5.8 For the Creation or Cancellation of an Index Commodity Contract, if
day t is a Market Disruption Day for the Composite Commodity Index
relating to that Index Commodity Contract, then the Price of such Index
Commodity Contract shall be determined in accordance with paragraphs 4(a)
and 4(b) of Schedule 6 in respect of a Creation of an Index Commodity Contract
or paragraphs 4(a) and 4(b) of Schedule 7 in respect of a Cancellation of
an Index Commodity Contract.

5.9 For the Creation or Cancellation of an Individual Commodity
Contract, if day t is a Market Disruption Day for the Individual Commodity
Index relating to that Individual Commodity Contract, then paragraph 4(a)
of Schedule 6 in respect of a Creation of an Individual Commodity Contract or
paragraph 4(a) of Schedule 7 in respect of a Cancellation of an Individual
Commodity Contract shall apply.

6. SUBSTITUTION OF COMMODITY INDICES

The Counterparty and the Fund may agree[, subject to the prior written
consent of the Calculation Agent], to substitute a different commodity index
for one or more of the Commodity Indices and accordingly may agree such changes
as they agree to be necessary or appropriate to this Agreement consequent upon
such substitution. Such changes may be effected in the manner agreed in writing
by the Counterparty and the Fund[, subject to the prior written consent of the
Calculation Agent], provided that the adjustments so agreed
have the consequence that at the time of the substitution of the index there is
no change to the aggregate Price of the Commodity Contracts of the class or
classes which are the subject of the substitution.

7. AUTHORIZED PARTICIPANTS

Consent for Authorized Participants

7.1 The Fund may appoint Authorized Participants in its sole discretion
and the Fund shall notify the Counterparty of each such appointment,
identifying the person, its Authorized Individuals and the date from which that
person will be entitled to act as an Authorized Participant; provided,
however,
that the Counterparty shall have a right of prior consent in accordance with
this Clause 7 in respect of any Creations and Redemptions by any
Authorized Participant. 

7.2 The Fund shall provide (or shall procure that the Counterparty is
provided with) such information as the Counterparty may reasonably require in
order to consider whether or not to accept Creations and Redemptions by any
proposed Authorized Participant.

7.3 The Counterparty shall, within ten Business Days of receiving the
information required under Clause 7.2, notify the Fund whether or not the
Counterparty gives its consent to Creations and Redemptions by an Authorized
Participant.

26

7.4 The Counterparty shall not unreasonably withhold or delay giving
its consent in respect of any such proposal under this Clause 7; provided
that the Counterparty may withhold its consent in its absolute
discretion where:

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
 such proposed person does not (i) have an Acceptable Credit
 Rating, or (ii) provide credit support acceptable to the Counterparty
 from a credit support provider with an Acceptable Credit Rating, or
 (iii) provide cash collateral or other security, in either case on such
 terms as the Counterparty may require in its sole discretion; or

 
	
  

 	
  

 
	
 (b)

 	
 the Counterparty otherwise deems such person to be unacceptable as an
 Authorized Participant for credit, compliance, general business policy or
 reputational reasons; or

 
	
  

 	
  

 
	
 (c)

 	
 the Counterparty reasonably determines that it would be unlawful for
 the Counterparty, or the Counterparty would be required to obtain any
 governmental or regulatory consent or license in any jurisdiction, to enter
 into or perform any of the transactions between it and such Authorized Person
 contemplated under this Agreement or the relevant Direct Agreement; or

 
	
  

 	
  

 
	
 (d)

 	
 [the Counterparty determines, in its reasonable belief, that: 

 
	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 it may be required to withhold or deduct for or on account of any Tax
 under any applicable law amounts from one or more payments required to be
 made by it to such proposed person or the Fund under any Direct Agreement or
 this Agreement 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (A)

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (B)

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 it may receive a payment from such proposed person under such Direct
 Agreement from which an amount would be required to be withheld or deducted
 for or on account of any Tax under any applicable law and no amount would
 required to be paid by such person in respect of such Tax under the Direct
 Agreement (other than by reason of sub-paragraph (d)(i) or (ii) of the
 section of the relevant Direct Agreement entitled “Gross-up” (being
 clause 8 of the agreed form of the Direct Agreement)).]

 

7.5 Where the Counterparty has consented to accept Creations and
Redemptions from an Authorized Participant pursuant to Clause 7.1 or
Clause 7.3, the Counterparty shall negotiate in good faith to enter into a
Direct Agreement with that person.

7.6 The Fund shall notify the Counterparty in writing whenever an
Authorized Participant ceases to be an Authorized Participant.

7.7 The Fund shall not, when entering into an Authorized Participant
Agreement with an Authorized Participant, agree to any amendment to the agreed
form of the Authorized Participant Agreement without the prior written consent
of the Counterparty, such consent not to be unreasonably withheld or delayed.

Unacceptable Authorized Participants

7.8 The Counterparty may at any time give notice to the Fund that an
Authorized Participant has ceased to be acceptable to the Counterparty with
effect from the date and time (no earlier than the date and time on which such
notice is sent) specified in such notice if:

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
 the Authorized Participant or a person providing credit support to
 the Counterparty for the payment obligations of that Authorized Participant
 does not have an Acceptable Credit Rating, and such Authorized Participant
 has not provided or procured the provision of credit support acceptable to
 the Counterparty from a credit support provider with an Acceptable 

 

27

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Credit Rating or provided cash collateral or other security, in
 either case on such terms as the Counterparty may require in its sole
 discretion; or

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
 the Counterparty deems such person to be unacceptable as an
 Authorized Participant for credit, compliance, general business policy or
 reputational reasons; or

 
	
  

 	
  

 
	
 (c)

 	
 the Counterparty determines, in its reasonable belief, that: 

 
	
  

 	
  

 
	
  

 	
 (i)

 	
 it would be unlawful for the Counterparty, or the Counterparty would
 be required to obtain any governmental or regulatory consent or license in
 any jurisdiction, to enter into or perform any of the transactions
 contemplated to be effected between it and such Authorized Participant,
 pursuant to this Agreement and the relevant Applicable Authorized Participant
 Agreement or the relevant Direct Agreement; or

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 such Authorized Participant will be incapable of performing its
 obligations under the relevant Applicable Authorized Participant Agreement or
 the relevant Direct Agreement without contravening (or causing the Fund or
 the Counterparty to contravene) any applicable law or regulation; or

 
	
  

 	
  

 	
  

 
	
 (d)

 	
 [the Counterparty determines, in its reasonable belief, that:

 
	
  

 	
  

 
	
  

 	
 (i)

 	
 it may be required to withhold or deduct for or on account of any Tax
 under any applicable law amounts from one or more payments required to be
 made by it: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (A)

 	
 to such Authorized Participant under any Direct Agreement such that
 it would be required under such Direct Agreement to pay additional amounts to
 such person on account of the amount so withheld or deducted; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (B)

 	
 to the Fund under this Agreement such that it would be required to
 pay additional amounts to the Fund under Clause [12] on account of the
 amount so withheld or deducted; or]

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 it may receive a payment from such Authorized Participant under such
 Direct Agreement from which an amount would be required to be withheld or
 deducted for or on account of any Tax under any applicable law and no amount
 would required to be paid by such person in respect of such Tax under the
 Direct Agreement (other than by reason of sub-paragraph (d)(i) or (ii)
 of the section of the relevant Direct Agreement entitled “Gross-up” (being
 clause 8 of the agreed form of the Direct Agreement)); or

 
	
  

 	
  

 	
  

 
	
 (e)

 	
 the Counterparty ceases under a Required Security Document with
 respect to the Applicable Authorized Participant Agreement to which that
 Authorized Participant is party to have a valid and enforceable first-ranking
 security interest in all or any of the Assigned Rights with respect to that
 Applicable Authorized Participant Agreement, or such security interest proves
 not to have been valid or enforceable when granted or purported to have been
 granted; or

 
	
  

 	
  

 
	
 (f)

 	
 by reason of (i) the adoption of, or any change in, any applicable
 law, legally-binding directive or regulation after the date of the relevant
 Direct Agreement the performance of the relevant Direct Agreement by either
 party thereto becomes unlawful; or (ii) the adoption of, or any change in,
 any applicable law, directive, regulation, accounting rule, practice or
 principle, or any Change in Tax Law, in each case after the date of the
 relevant Direct Agreement, or any change in the interpretation or application
 by any Competent Authority of any such applicable law, directive, regulation,
 rule, practice or principle, after the date of the relevant Direct Agreement,
 the Counterparty considers (acting in good faith) that the economic benefit
 of its being party to the relevant Direct Agreement would be materially
 adversely affected; or

 

28

	
  

 	
  

 
	
 (g)

 	
 such Authorized Participant has failed to pay any amount due and
 payable by it to the Fund (or to its order) in respect of Shares, or to the
 Counterparty in accordance with the relevant Direct Agreement, where such
 failure is not rectified within five Business Days following the day on which
 such Authorized Participant receives notice of such failure sent by the Fund
 or the Counterparty (as the case may be) in accordance with the procedure for
 sending Pricing Notices under Clause 25.1; or

 
	
  

 	
  

 
	
 (h)

 	
 the SEC or any regulatory body, governmental body, agency, other
 authority or court requests, requires, directs or orders that (or to the
 effect that) such person cease to act as an Authorized Participant or that
 the Counterparty cease to Create Commodity Contracts in respect of Shares
 issued by the Fund for such Authorized Participant or place hedges in respect
 of its exposures in respect of them; or

 
	
  

 	
  

 
	
 (i)

 	
 the Authorized Participant has been found guilty of any breach of law
 or regulation (whether by the SEC or any other authority or body) in respect
 of its role as an Authorized Participant; or

 
	
  

 	
  

 
	
 (j)

 	
 the Authorized Participant is in material or persistent breach of any
 selling restrictions to which it is subject under the relevant Direct Agreement
 or its Authorized Participant Agreement with the Counterparty (and for the
 avoidance of doubt for the purposes of this Clause an Authorized Participant
 is in persistent breach of such selling restrictions where it has breached
 them at least 3 (three) times in any period of 12 months); or

 
	
  

 	
  

 
	
 (k)

 	
 in the Counterparty’s reasonable opinion such Authorized Participant
 will be incapable of performing its obligations under its relevant Authorized
 Participant Agreement or Direct Agreement without contravening (or causing
 the Fund or the Counterparty to contravene) any applicable law or
 regulations.

 

7.9 An Authorized Participant in respect of which a notice has been
given by the Counterparty under Clause 7.8 shall remain an Unacceptable
Authorized Participant until the Counterparty confirms otherwise in writing to
the Fund. The Fund shall notify each Authorized Participant of the provisions
of Clause 7.8.

Authorized Participant Credit Limits

7.10 The Counterparty may from time to time determine a credit limit with
respect to Commodity Contracts to apply in respect of an Authorized
Participant, and change a credit limit previously determined and notified. The
Counterparty shall notify the Fund and the applicable Authorized Participant in
writing of such credit limit. A notice given under this Clause 7.10 shall not
have effect until the day following the New York Business Day upon which such
notice is received by the Fund.

8. MATERIAL ADVERSE CHANGE

8.1 If a Material Adverse Change occurs, the Party adversely affected
by such Material Adverse Change (the Affected Party) shall give notice thereof to the other
Party (a Material Adverse
Change Notice), specifying
the nature of that Material Adverse Change and the business affected thereby (the Affected Business) and will also give such other information about that Material Adverse Change as the other party may reasonably
require. The Affected Party will use all reasonable efforts (which will
not require such Party to incur a loss, excluding
immaterial, incidental expenses) within 20 days after it gives such
Material Adverse Change notice to restructure the Affected Business (which may
include a transfer of all its rights and obligations under this Agreement in
respect of the Affected Business to another office or Affiliate) so that such
Material Adverse Change ceases to exist.

8.2 If the Affected Party is not able to effect such a restructure it
will give notice to the other Party to that effect
within such 20 day period, whereupon the other Party may effect such a restructure
within 30 days after such Material Adverse Change notice. Any such
restructure by a Party will be subject to and conditional upon the prior
written consent of the other Party, which 

29

consent will not be withheld if such other Party’s policies in effect
at such time would permit it to enter into transactions with the transferee on
the terms proposed.

8.3 If a Material Adverse
Change occurs and neither Party is able to effect such a restructure or it is
reasonably determined that no such restructure would cause the Material Adverse
Change to cease, the Parties will negotiate in good faith to reach agreement
within 30 days after the first Material Adverse Change notice is given on
action to address such Material Adverse Change which as near as possible would
leave both Parties in the same economic position as if such Material Adverse
Change had not occurred.

9. TERMINATION

General termination

9.1 The Counterparty may give the Fund notice of a Compulsory Pricing
Date in respect of all classes of Commodity Contracts: 

	
  

 	
  

 
	
 (a)

 	
 by not less than 3 (three) months’ notice;

 
	
  

 	
  

 
	
 (b)

 	
 by not less than 2 Business Days’ notice, if a Fund Event of Default
 has occurred and is continuing provided such Fund Event of Default was
 not caused by a breach by the Counterparty of its obligations under this
 Agreement or by any Guarantor of its obligations under any Guarantee; or

 
	
  

 	
  

 
	
 (c)

 	
 by not less than 30 (thirty) days’ notice, if any applicable
 Guarantee is in force and there is a Guarantor Tax Event,

 
	
  

 	
  

 
	
 and a Compulsory Pricing Date in respect of all classes of Commodity
 Contracts shall automatically occur on the date that is [ten] years after the
 Effective Date, unless the Parties agree to an extension before such date.

 
	
  

 	
  

 
	
 9.2

 	
 the Fund may give the Counterparty notice of a Compulsory Pricing
 Date:

 
	
  

 	
  

 
	
 (a)

 	
 in respect of all or the applicable classes of Commodity Contracts by
 not less than thirty days’ notice, if all Shares, or all Shares of any one or
 more classes, are to be Redeemed;

 
	
  

 	
  

 
	
 (b)

 	
 in respect of all classes of Commodity Contracts by not less than 3
 (three) months’ notice irrespective of whether any Shares are to be Redeemed;

 
	
  

 	
  

 
	
 (c)

 	
 in respect of all classes of Commodity Contracts by not less than
 thirty days’ notice if the Counterparty gives notice under Clause [12]
 irrespective of whether any Shares are to be Redeemed;

 
	
  

 	
  

 
	
 (d)

 	
 in respect of all classes of Commodity Contracts by not less than two
 Business Days’ notice, if a Counterparty Default has occurred and is
 continuing provided that such Counterparty Default was not caused by
 a breach by the Fund of its obligations under this Agreement or by any
 Authorized Participant under the relevant Applicable Authorized Participant
 Agreement; or

 
	
  

 	
  

 
	
 (e)

 	
 in respect of the applicable classes of Commodity Contracts by not
 less than two days’ notice if all Shares of any class are to be redeemed
 pursuant to [the Trust Agreement]

 

Material Adverse Change Termination

9.3 If a Material Adverse Change Notice is given and notwithstanding
compliance with Clause 8 the Parties are unable to take action which
overcomes such Material Adverse Change within 30 days after the first Material
Adverse Change notice is given, either Party may, by not less than 20 days’ 

30

notice to the other Party, and provided
that the relevant Material Adverse Change is then continuing,
designate a day not earlier than the last day of such period as a Compulsory
Pricing Date in respect of all classes of Commodity Contracts.

9.4 The Parties hereby agree that to the extent any Commodity Contract
or the ISDA Agreements constitute one or more “swaps” under the Wall Street
Transparency and Accountability Act of 2010 (the “DFA”), the right to designate
a Compulsory Pricing Date under this Clause 9 in connection with the occurrence
of such a Material Adverse Change that arises from or in connection with the
enactment of the DFA or any amendment made thereby or any requirement
thereunder, the coming into effect of any one or more provisions of the DFA or
any requirement thereunder or any rule promulgated thereunder is “specifically
reserved” within the meaning of Section 739 of the DFA. For the avoidance of
doubt, the parties further agree that Section 739 of the DFA shall not prevent
any such Compulsory Pricing Date from occurring and shall not prevent or
otherwise restrict a party’s right to designate a Compulsory Pricing Date in
connection therewith in accordance with the terms hereof. This provision is a
material and essential element of the Agreement and the parties would not have
entered into this Agreement but for the inclusion and the effectiveness of this
provision.

Fall in Intra-day Price

9.5 If the Intra-day Price of any Commodity Contract falls to or below
zero at any time during any Trading Day, then the Counterparty may nominate
that Trading Day to be a Compulsory Pricing Date in respect of that class of
Commodity Contracts, which shall thereupon be terminated with no payments due
to or from the Counterparty from or to the Issuer in respect of such
termination, even if the Price of the terminated Commodity Contracts has
returned to a positive value by the end of such Trading Day. Any such
nomination shall be ineffective unless given in the manner provided for Pricing
Notices in Clause 25, and given by no later than 11.30 p.m. on the
Trading Day in question. 

Cancellation following termination

9.6 Where notice has been given of a Compulsory Pricing Date in respect
of any or all classes of Commodity Contracts under Clause 9.1,
Clause 9.2 or Clause 9.3:

	
  

 	
  

 
	
 (a)

 	
 except where notice is given under Clause 9.1(a), no Commodity
 Contracts of the relevant class or classes may be Created on or after the
 date on which such notice is received by the Party to whom such notice is
 given;

 
	
  

 	
  

 
	
 (b)

 	
 where notice is given under Clause 9.1(c) or Clause 9.2(d),
 no further Cancellation Notices shall be given hereunder; and

 
	
  

 	
  

 
	
 (c)

 	
 all existing Commodity Contracts, or all existing Commodity Contracts
 of the relevant class or classes, will be Cancelled in accordance with
 paragraph 14 of Schedule 7.

 

Termination of Agreement

9.7 This Agreement shall terminate following payment in full by the
Counterparty of the Cancellation Amount in respect of all Commodity Contracts
to be Cancelled following a Compulsory Pricing Date in respect of all classes
of Commodity Contracts and any other outstanding amounts payable in accordance
with this Agreement, provided that termination shall be without
prejudice to all rights, entitlements and remedies which have arisen or accrued
before termination.

31

10. EXERCISE OF SET-OFF RIGHTS

10.1 Without prejudice to paragraph 11 of Schedule 7 and subject
always to Clause 10.2, if the Fund determines to exercise its rights under the
provisions of any Authorized Participant Agreement equivalent to
paragraph 13 of Attachment B to the Authorized Participant Agreement in
the agreed form:

	
  

 	
  

 
	
 (a)

 	
 in circumstances where all or any of the Redemption Amount (for the
 purposes of that paragraph) would be settled by payment of a Cancellation
 Amount to the Redemption Account of that Authorized Participant hereunder but
 the amount of the Application Amount (for the purposes of that paragraph)
 would not be payable to the Counterparty as a Creation Amount hereunder, the
 Fund may direct the Counterparty not to pay all or part of such Cancellation
 Amount [into the applicable Redemption Account] but instead to pay all or
 such part to such other account as the Fund may direct (being intended to be
 for the account of the Commodity Contract Counterparty to whom the relevant
 Application Amount would be payable by the Fund);

 
	
  

 	
  

 
	
 (b)

 	
 in circumstances where the Application Amount (for the purposes of
 that paragraph) should be settled by payment of a Creation Amount to the
 Counterparty Account hereunder but the amount of the Redemption Amount would
 not be payable by the Counterparty as a Cancellation Amount hereunder and all
 or part of such amount is paid by the Commodity Contract Counterparty to the
 Fund pursuant to the provision of the Facility Agreement between it and the
 Fund equivalent to Clause 10.1(a) hereof, then the Fund shall pay such
 amount so paid to the Counterparty in discharge (to that extent) of the
 unpaid Creation Amount.

 

10.2 Save to the extent required to do so by a provision of a Facility
Agreement equivalent to paragraph 11 of Schedule 7, the Fund shall not exercise
its rights under the provisions of any Authorized Participant Agreement
equivalent to paragraph 13 of Attachment B to the Authorized Participant
Agreement in the agreed form in circumstances where the Application Amount (for
the purposes of that paragraph) should be settled by payment of a Creation
Amount to the Counterparty Account hereunder but the amount of the Redemption
Amount would not be payable by the Counterparty as a Cancellation Amount
hereunder:

	
  

 	
  

 
	
 (a)

 	
 without the prior consent in writing of each Commodity Contract
 Counterparty to whom or by whom are owed Creation Amounts or Cancellation
 Amounts which correspond to the Application Amount or Redemption Amount
 concerned; and 

 
	
  

 	
  

 
	
 (b)

 	
 unless it directs the Commodity Contract Counterparty by whom the
 Redemption Amount would be payable as a Cancellation Amount under the terms
 of its Facility Agreement to make payment to the Counterparty Account of an
 amount equal to the lower of the relevant Creation Amount and such Redemption
 Amount.

 

10.3 The Fund undertakes that if the Counterparty elects to effect a
set-off of amounts under paragraph 11 of Schedule 7 with respect to any
Authorized Participant, it will use commercially reasonable endeavors (but
without accepting any legal responsibility therefor and subject to having been
given adequate notice to do so) to exercise its rights under the provisions of
the Applicable Authorized Participant Agreement equivalent to paragraph 17 of
Schedule 4 to the Authorized Participant Agreement in the agreed form.

10.4 Save as provided in this Clause 10, the Fund shall not
exercise rights of set-off (legal, equitable or contractual) against any
Authorized Participant without the prior written consent of each Commodity
Contract Counterparty by whom or to whom are owed Creation Amounts or
Cancellation Amounts which correspond to Application Amounts or Redemption
Amounts that the Fund wishes to set-off as against that Authorized Participant.

32

11. GENERAL PAYMENT PROVISIONS

Currency

11.1 Without prejudice to the terms of the ISDA Master Agreement, all
monies payable under this Agreement shall be paid in US Dollars in cleared and
immediately available funds and without set-off or counterclaim (other than any
set-off expressly contemplated by this Agreement).

Interest

11.2 Following the occurrence of a Settlement Failure, interest shall
accrue on any balance of the Creation Amount or the Cancellation Amount not
paid or otherwise discharged by way of set-off in accordance with this
Agreement by or on behalf of the Fund or the Counterparty (as the case may be)
from the Settlement Failure Date. Such interest shall:

	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
 accrue at the Funding Rate from and including the Settlement Failure
 Date to but excluding the date falling three Business Days after the
 Settlement Failure Date, and thereafter at the Default Rate; and

 
	
  

 	
  

 
	
 (b)

 	
 cease to accrue:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 in relation to the balance of the Creation Amount, (A) on the date on
 which the Commodity Contracts relating to such balance are Cancelled by the
 Counterparty in accordance with the terms of this Agreement, or (B) if such
 Commodity Contracts are not so Cancelled, on the date on which such balance
 is paid by or on behalf of the Fund into the Counterparty Account; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 in relation to the balance of the Cancellation Amount, on the date on
 which such balance is paid by the Counterparty into the relevant Redemption
 Account.

 

11.3 The Parties acknowledge and agree that, other than as set out in
Clause 11.2, no interest or any amount in respect of or in the nature of
interest is due or payable by or on behalf of either Party.

No double recovery

11.4 A Party may satisfy any of its payment obligations under this
Agreement by procuring the payment of the outstanding amount on its behalf by
another person.

Payments due on Days other than Business Days

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

Credit Support

11.6 The Counterparty shall procure that at all times any Guarantee
given hereunder remains in full force and effect, unless a replacement
guarantee (or other form of credit support) acceptable to the Fund in its sole
discretion is provided to the Fund in lieu of any Guarantee upon or prior to
such Guarantee ceasing to be in full force and effect.

11.7 The provisions of Clause 11.6 shall apply mutatis mutandis to
any replacement guarantee (or other form of credit support) and any replacement
guarantor (or credit support provider).

Payments into a Redemption
Account

11.8 Where the Counterparty is required to make a payment into a
Redemption Account [such payment obligation shall be deemed satisfied upon the
Counterparty depositing such amount in full 

33

cleared and immediately available US Dollar funds into [the Redemption
Account specified in the Pricing Notice or otherwise notified to the
Counterparty in accordance with the provisions of this Agreement]]

12. DEDUCTION OR WITHHOLDING FOR TAX 

 [Reserved]

13. BANK ACCOUNTS

Compulsory Cancellations

13.1 The Fund shall notify to
the Counterparty from time to time (but in any event by no later than
[4.00 p.m.] on the day prior to the Payment Date for a Compulsory
Cancellation) details of each Redemption Account into which the Fund may
require or direct the Counterparty to make payment of any Cancellation Amount
pursuant to a Compulsory Cancellation.

The Counterparty Account

13.2 The Counterparty shall establish and at all times maintain a bank
account (the Counterparty Account) to receive payments of Creation Amounts and
into which the Counterparty shall pay Cancellation Amounts, and the
Counterparty shall notify the Fund of the details of such account from time to
time

13.3 The Counterparty shall as soon as possible notify the Fund of the
account details of the Counterparty Account.

Change of bank accounts

13.4 The
Counterparty may change the bank account which constitutes the Counterparty
Account by giving notice thereof to the Fund and each Authorized Participant.

13.5 A change
of bank account notified in accordance with Clause 13.4 shall take effect
on the later to occur of:

	
  

 	
  

 
	
 (a)

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

 
	
  

 	
  

 
	
 (b)

 	
 the day
 which is five Business Days following the day on which notice of the change
 was deemed received by each of the persons to which it was sent.

 

14. COMMODITY INDICES 

14.1 Subject to Clauses 15.1, 15.1 and 15.4, in the event that UBS
Securities and CME Indexes as co-sponsors of the DJ-UBS CISM
cease to calculate and publish any Individual Commodity Index or any Composite
Commodity Index, the Calculation Agent shall use all reasonable endeavors to
calculate settlement values of such Individual Commodity Index and/or Composite
Commodity Index for each Pricing Day using the same methodology and processes
for each individual commodity as are used from time to time for the calculation
of the DJ-UBS CISM and to provide such values to the Fund on
such Pricing Day. Subject to Clauses 15.1, 15.2 and 15.4, in the event
that CME Indexes and UBS Securities as co-sponsors of the DJ-UBS CISM
cease to calculate and publish any Individual Commodity Index or any Composite
Commodity Index, the Calculation Agent will be required under the Calculation
Agency Agreement to use all reasonable endeavors to calculate settlement values
of such Individual Commodity Index and/or Composite Commodity Index for each
Pricing Day using the same methodology and processes for each individual
commodity as are used from time to time for the calculation of the DJ-UBS CISM
and to provide such values to the Fund and the Counterparty on such Pricing
Day.

34

14.2 Subject to Clauses 15.1, 15.2 and 15.4, in the event that UBS
Securities and CME Indexes as co-sponsors of the DJ-UBS CISM do
not make the settlement prices of the DJ-UBS CISM and the
Commodity Indices publicly available on any day that such indices are
calculated, the Calculation Agent shall notify the Fund of the DJ-UBS CISM
and the Commodity Indices, calculated to three places of decimals on such day.
Subject to Clauses 15.1, 15.2 and 15.4, in the event that CME Indexes and
UBS Securities as co-sponsors of the DJ-UBS CISM do not make
the settlement prices of the DJ-UBS CISM and the Commodity
Indices publicly available on any day that such indices are calculated, the
Calculation Agent will be required under the Calculation Agency Agreement to
notify the Fund of the DJ-UBS CISM and the Commodity Indices,
calculated to three places of decimals on such day. 

14.3 If excess return indices substantially similar to the Commodity
Indices by reference to which the Commodity Contracts are Priced (excluding,
for the avoidance of doubt, indices that select commodity futures using their
basis, relative strength or other price-based factors) are calculated by the
Counterparty (or any of its Affiliates) in conjunction with CME Indexes and
published for any commodity (or commodities) other than those by reference to
the prices of which the DJ-UBS CISM or any existing Commodity
Index is calculated, the Fund may, unless the Counterparty gives notice in
respect of such other commodity (or other commodities) in accordance with
Clause 14.4, by notice to the Counterparty elect that one or more of such
excess return indices shall be a Commodity Index in respect of which Commodity
Contracts relating to the Fund may be Created hereunder; in which case Schedule
[2 and Schedule 3] shall be deemed amended accordingly and the other provisions
of this Agreement shall apply mutatis mutandis to such Commodity
Index(ices) in respect of which that election is made by the Fund. If excess
return indices substantially similar to the Commodity Indices by reference to
which the Commodity Contracts are Priced (excluding, for the avoidance of
doubt, indices that select commodity futures using their basis, relative
strength or other price-based factors) are calculated by UBS (or any of its
Affiliates) in conjunction with CME Indexes and published for any commodity (or
commodities) other than those by reference to the prices of which the
DJ-UBS CISM or any existing Commodity Index is calculated, the
Fund may, unless the Counterparty gives notice in respect of such other
commodity (or other commodities) in accordance with Clause 14.4, by giving
not less than 10 Business Days’ notice to the Counterparty elect that one or
more of such excess return indices shall be a Commodity Index in respect of
which Commodity Contracts may be Created hereunder; in which case
Schedule[ 2 and Schedule 3] shall be deemed amended accordingly and
the other provisions of this Agreement shall apply mutatis mutandis to such
Commodity Index(ices) in respect of which that election is made by the Fund.

14.4 If excess return indices substantially similar to the Commodity
Indices by reference to which the Commodity Contracts are Priced (excluding,
for the avoidance of doubt, indices that select commodity futures using their
basis, relative strength or other price-based factors) are calculated by the
Counterparty (or any of its Affiliates) in conjunction with CME Indexes and
published for commodities other than those by reference to the prices of which
the DJ-UBS CISM or any existing Commodity Index is calculated,
the Counterparty may at any time prior to the later of (i) the giving by the
Fund of a Creation Notice in respect of the first Commodity Contract of the
class relating to such commodity index and (ii) the date of publication of such
excess return index, give notice that it is unable to enter into the hedging
positions that it considers (acting reasonably) necessary to hedge its
obligations in connection with such Commodity Contracts. If excess return
indices substantially similar to the Commodity Indices by reference to which
the Commodity Contracts are Priced (excluding, for the avoidance of doubt,
indices that select commodity futures using their basis, relative strength or
other price-based factors) are calculated by UBS (or any of its Affiliates) in
conjunction with CME Indexes and published for commodities other than those by
reference to the prices of which the DJ-UBS CISM or any existing
Commodity Index is calculated, the Counterparty may at any time prior to the
later of (i) the giving by the Fund of a Creation Notice in respect of the
first Commodity Contract of the class relating to such commodity index and (ii)
the date of publication of such excess return index, give notice that it is
unable to enter into the hedging positions that it considers (acting
reasonably) necessary to hedge its obligations in connection with such
Commodity Contracts. 

35

15. Non-Publication of Commodity Indices

Market Disruption

15.1 Non-calculation or non-publication of a Commodity Index on a
Market Disruption Day in respect of that Commodity Index shall not constitute a
breach by the Counterparty of its obligations under Clauses 14.1 or 14.2.

15.2 If: 

	
  

 	
  

 
	
 (a)

 	
 an Individual Commodity Index is not published for five or more
 consecutive Trading Days by reason of those Trading Days being Market
 Disruption Days in respect of that Individual Commodity Index; or

 
	
  

 	
  

 
	
 (b)

 	
 any Composite Commodity Index is not published for five or more
 consecutive Trading Days by reason of those Trading Days being Market
 Disruption Days in relation to the Designated Contracts relating to any
 commodity the Settlement Price of which is used to determine that Composite
 Commodity Index,

 

then in each case the Calculation Agent will be required under the
Calculation Agency Agreement to calculate and provide to the Fund and the
Counterparty a substitute value for that Individual Commodity Index and/or Composite
Commodity Index in accordance with the provisions of the Calculation Agency
Agreement on each subsequent Trading Day for as long as the Market Disruption
Event continues.

Other

15.3 If a Commodity Index is not published on a Trading Day for any
reason other than that Trading Day being a Market Disruption Day in relation to
that Commodity Index, the Calculation Agent will be required under the
Calculation Agency Agreement to calculate and provide to the Fund a substitute
value for that Commodity Index in accordance with the provisions of the
Calculation Agency Agreement for that Trading Day and for each subsequent
Trading Day for as long as the non-publication continues.

General

15.4 If non-calculation or non-publication (including any
non-publication by Dow Jones for which the Calculation Agent is providing
substitute values as referred to in Clause 14.1) of a Commodity Index for any reason continues for a
continuous period of thirty days, the Parties shall negotiate in good faith for
(i) a permanent replacement mechanism for such Commodity Index for the purposes
of this Agreement, and (ii) amendments to this Agreement to give effect to such
permanent replacement. If within a further period of thirty days the Parties
are unable to reach agreement on a permanent replacement mechanism or
amendments to this Agreement to give effect to it, either Party may give not
less than thirty days’ written notice of the Compulsory Pricing Date in respect
of the class of Commodity Contracts to which that Commodity Index relates.

15.5 Where a Compulsory Pricing Date is notified in accordance with
Clause 15.4, all Commodity Contracts of that class shall be terminated in
accordance with paragraph 14 of Schedule 7. 

16. Hedging Disruption Events

16.1 The
Counterparty shall notify the Fund and each Authorized Participant in writing,
in the manner provided for Pricing Notices in Clause 25, of:

	
  

 	
  

 
	
 (a)

 	
 the occurrence or anticipated occurrence of a Hedging Disruption
 Event in respect of the Relevant Market for one or more Individual Commodity
 Indices or commodities by reference to which an Individual Commodity Index is
 determined or which are otherwise comprised in 

 

36

	
  

 	
  

 
	
  

 	
 a Composite
 Commodity Index but are not the subject of an Individual Commodity Index; and

 
	
  

 	
  

 
	
 (b)

 	
 the cessation of that Hedging Disruption Event,

 

in each case promptly upon becoming aware of the same and whilst any
notice has been given under paragraph (a) all Creations of Commodity
Contracts which are of a class the Price of which is determined by reference to
a Commodity Index which is calculated (in whole or in part) by reference to the
Settlement Prices for one or more commodities to which such Hedging Disruption
Event relates will cease until notice is given under paragraph (b).

16.2 If as a consequence of an anticipated Hedging Disruption Event,
the Counterparty or any of its Affiliates reasonably determines that it may (a)
be required by law, or by the order of a regulatory authority having
jurisdiction over the Counterparty or such Affiliate, or (b) be reasonably
necessary in order for it to comply with any such law or order, to close or
reduce hedging positions (if any) which the Counterparty (acting reasonably)
attributes to the hedging of its obligations in connection with this Agreement
or Commodity Contracts of one or more classes (including, without limitation,
any Index Commodity Contracts), the Counterparty shall notify the Fund thereof
as soon as the circumstances which might give rise to the Hedging Disruption
Event come to its attention, and the Parties shall negotiate in good faith to
agree upon mechanisms which would permit the Counterparty or any of its
Affiliates to continue to hedge such positions to the Counterparty’s
satisfaction (acting reasonably) or would enable such positions to be hedged to
the Counterparty’s satisfaction (acting reasonably) in an alternative manner
(whether in whole, in part or not at all) without a corresponding need to
Redeem Shares, including amendments to this Agreement to permit other providers
of contractual commitments equivalent to Commodity Contracts to provide such
commitments to the Fund in lieu of Commodity Contracts (in whole or in part).

16.3 If as a consequence of a Hedging Disruption Event the Counterparty
or any of its Affiliates reasonably determines that it is (a) required by law,
or by the order of a regulatory authority having jurisdiction over the
Counterparty or such Affiliate, or (b) reasonably necessary in order for it to
comply with any such law or order, to close or reduce hedging positions (if
any) which the Counterparty (acting reasonably) attributes to the hedging of
its obligations in connection with this Agreement or Commodity Contracts of one
or more classes (including, without limitation, any Index Commodity Contracts),
the Counterparty may Cancel some or all of the Commodity Contracts then in
existence of that class or those classes, by giving to the Fund not less than
30 days’ notice of:

	
  

 	
  

 
	
 (a)

 	
 the
 Compulsory Pricing Date applicable to the Cancellation of Commodity Contracts
 in accordance with this Clause 16; and

 
	
  

 	
  

 
	
 (b)

 	
 the number,
 classes and Strategies of Commodity Contracts which are to be Cancelled in
 accordance with this Clause 16.

 

16.4 Where
notice of a Compulsory Pricing Date and the number of Commodity Contracts of a
particular class or classes to be Cancelled is given in accordance with
Clause 16.3 then, subject to paragraph 15(b) of Schedule 7, that
number or those numbers of that class or those classes of Commodity Contracts
(as reduced pursuant to the proviso in the definition of “Compulsory Number
Priced” in connection with that Compulsory Pricing Date) shall be Cancelled in
accordance with paragraph 14 of Schedule 7.

17. Calculation Agent

17.1 The Counterparty shall act as Calculation Agent for the purposes
of and in accordance with the terms of this Agreement. The Calculation Agent
shall act as calculation agent for the purposes of this Agreement pursuant to
the terms of the Calculation Agency Agreement.

17.2 The Calculation Agent shall act in good faith and in a commercially
reasonable manner and in accordance with the obligations of the Calculation
Agent set out in this Agreement. Subject thereto, 

37

in the absence of manifest error the calculations of the Calculation
Agent provided for in Clause 17.1 shall be final and conclusive. Subject
as provided in the Calculation Agency Agreement and in the absence of manifest
error, the calculations of the Calculation Agent provided for in any of
Clauses 14.1, 15.1 and 15.3, the determinations by the Calculation Agent
of the existence of a Market Disruption Event as referred to in the definition
thereof and the determinations and notifications by the Calculation Agent
referred to in paragraph 4(d)(iii) of Schedule 6 and paragraph 4(d)(iii) of
Schedule 7 and in clauses 7 and 8 of the Calculation Agency Agreement
shall be final and conclusive.

17.3 The Calculation Agent shall determine whether a Market Disruption
Event exists and shall make the determinations expressly contemplated in the
definition of “Intra-day Price”. Where a substitute value for a Commodity Index
is calculated by the Calculation Agent for a Trading Day pursuant to any of
[Clauses 14.1, 15.1, 15.3, paragraph 4(d)(iii) of Schedule 6 and paragraph
4(d)(iii) of Schedule 7 and clause 8 of the Calculation Agency Agreement,]
that substitute value shall be used in the calculation of the Price of
Commodity Contracts to which that Commodity Index is applicable for that
Trading Day, in lieu of the Commodity Index.

17.4 If a Commodity Index is not published and a substitute value is
required to be calculated by the Calculation Agent pursuant to any of
Clauses 15.1 or 15.3 the Calculation Agent shall thereupon provide to the
Fund such substitute value on the relevant day and thereafter, while that
circumstance persists, calculate a substitute value for that Commodity Index in
accordance with Clause 17.6 and provide to the Fund such substitute value
on each relevant day. In the event that the appointment of ______ as
Calculation Agent for the purposes of this Agreement is terminated for any
reason and the Counterparty becomes or is appointed Calculation Agent for the
purposes of this Agreement (whether or not on an interim basis), it shall do so
on the same terms as in the Calculation Agency Agreement (mutatis mutandis) and
if prior to or during the duration of such appointment the Fund enters into a
Facility Agreement with any other Commodity Contract Counterparty the
Counterparty shall act as Calculation Agent appointed by the Fund and such
Commodity Contract Counterparty for the purposes of such Facility Agreement and
shall enter into a calculation agency agreement in respect of such appointment
on the same terms (mutatis mutandis) as the Calculation Agency Agreement. 

17.5 In the event that the Calculation Agent (at the date of this
Agreement) ceases to be the Calculation Agent for the purposes of this
Agreement, it shall be for the Fund to select any person who is, or will at the
date of its appointment as Calculation Agent be, a Commodity Contract
Counterparty to be the Calculation Agent for the purposes of this Agreement on
substantially the same terms (mutatis mutandis) as those on which the
Calculation Agent (at the date of this Agreement) acts under the Calculation
Agency Agreement or such other terms (not being materially more prejudicial to
the Counterparty) as may be agreed between the Fund and such person, and the
Counterparty shall enter into a calculation agency agreement on such terms with
such person and the Fund accordingly. 

17.6 Where the Calculation Agent calculates a substitute value for a
Commodity Index in accordance with Clause 17.4, it shall adopt and follow
the following principles in making that calculation:

	
  

 	
  

 
	
 (a)

 	
 the substitute value shall be based on the Calculation Agent’s
 determination of the fair market value at such time of the futures contracts
 underlying the Commodity Index based on factors the Calculation Agent deems
 relevant, including, but not limited to, prices in other commodity markets,
 any available electronic or after hours trading prices, related
 over-the-counter or other non-exchange based prices, implied prices that may
 be derived from other exchange traded instruments, and estimated fair values
 based on fundamental market information; and

 
	
  

 	
  

 
	
 (b)

 	
 in determining the substitute value, the Calculation Agent shall have
 regard to relative movements in prices in other commodity futures markets for
 the same or similar commodities which were not affected by the Market
 Disruption Event or other event.

 

38

17.7 Where a substitute value for a Commodity Index is calculated by
the Calculation Agent for a Trading Day pursuant to Clause 17.4, that
substitute value shall be used in the calculation of the Price of Commodity
Contracts to which that Commodity Index is applicable for that Trading Day, in
lieu of the Commodity Index.

17.8 Fund may provide copies of determinations notified to the Fund by
the Calculation Agent to the Trustee (but no other person) and/or notify the
Trustee (and any other persons) of determinations made by the Calculation
Agent, but in each case on the express basis that:

	
  

 	
  

 
	
 (a)

 	
 such copies and notifications are provided to the Trustee for
 information purposes only;

 
	
  

 	
  

 
	
 (b)

 	
 neither the Trustee nor any holder or potential holder of Shares
 shall be entitled to rely as against the Calculation Agent upon any
 determination of the Calculation Agent; and

 
	
  

 	
  

 
	
 (c)

 	
 no duty shall be owed by the Calculation Agent to the Trustee or any
 holder or potential holder of Shares in connection with any such
 determination.

 

17.9 The Counterparty agrees that if the Fund enters into a Facility
Agreement with any other Commodity Contract Counterparty, the Counterparty
shall act as Calculation Agent appointed by the Fund and such Commodity
Contract Counterparty for the purposes of such Facility Agreement and shall
enter into a calculation agency agreement in respect of such appointment, provided
that:

	
  

 	
  

 
	
 (a)

 	
 such calculation agency agreement shall be in form and substance
 satisfactory to the Counterparty, acting reasonably, and shall include a
 limitation on liability for the Counterparty to losses incurred by the Fund
 and/or the Commodity Contract Counterparty as a result of the fraud, gross
 negligence or willful default of the Counterparty in such capacity, such
 other customary exculpatory and indemnificatory provisions in favor of the
 calculation agent as the Counterparty may reasonably require and agreements
 of the Fund and such Commodity Contract Counterparty in favor of the
 calculation agent in substantially the same form as the agreements of the
 Fund set out in Clause [17.8];

 
	
  

 	
  

 
	
 (b)

 	
 such appointment will be on terms that the Counterparty shall be
 entitled to resign if at any time there are no and have not for 30
 consecutive days been any Commodity Contracts outstanding under this
 Agreement; and

 
	
  

 	
  

 
	
 (c)

 	
 the determinations to be carried out by the Counterparty pursuant to
 such appointment shall be limited to those matters that the Calculation Agent
 is required to determine under Clauses 14.1, 14.2, 15.1, 15.3, 17.3,
 17.4 and 17.6 and under paragraphs 4(d)(iii) of Schedule 6 and
 4(d)(iii) of Schedule 7.

 

17.10 In the event of the appointment of the Counterparty as
calculation agent under the Calculation Agency Agreement being terminated
pursuant to clause 10.4, 10.5 or 10.6 thereof, the provisions of
clause 10.9 thereof shall have effect. 

17.11 In the event that the Calculation Agent (at the date of this
Agreement) ceases to be the Calculation Agent for the purposes of this
Agreement, it shall be for the Fund to select any person who is, or will at the
date of its appointment as Calculation Agent be, a Commodity Contract
Counterparty to be the Calculation Agent for the purposes of this Agreement on
substantially the same terms (mutatis mutandis) as those on which the
Calculation Agent (at the date of this Agreement) acts under the Calculation
Agency Agreement or such other terms (not being materially more prejudicial to
the Counterparty) as may be agreed between the Fund and such person, and the
Counterparty shall enter into a calculation agency agreement on such terms with
such person and the Fund accordingly. 

39

18. Selling and Listing Restrictions and Prohibited Investors

18.1 The
Trustee shall not:

	
  

 	
  

 
	
 (a)

 	
 apply for a listing or admission for trading for Shares on any stock
 exchange or on any other regulated market in any country or jurisdiction; or

 
	
  

 	
  

 
	
 (b)

 	
 take any action that would or is intended to permit a public offering
 of Shares, or possession or distribution of the Prospectus (in preliminary or
 final form) or any other offering or publicity material relating to Shares,
 in any country or jurisdiction where registration, consent, approval or any
 other action for that purpose is required,

 

in each case in a country other than the United States or a member
state of the European Union, without the prior written consent of the
Counterparty (which consent shall not be unreasonably withheld or delayed). The
Counterparty shall not be regarded as acting unreasonably in delaying or
withholding such consent in relation to this Clause 18.1 if the
Counterparty reasonably believes and notifies the Trust in writing, that the
Counterparty, any Guarantor or any Affiliate of the Counterparty or any
Guarantor would, in connection with the application for listing or admission to
trading for which its consent has been requested, (a) be subject to filing or
other regulatory requirements in any jurisdiction, or (b) under the laws of any
jurisdiction be considered the issuer of the securities for disclosure or
liability purposes, or (c) otherwise incur any form of liability or material
burden or breach any contractual obligation in connection with or as a
consequence of such application or such listing or admission to trading.

19. Undertakings 

The Fund

19.1 The Fund undertakes to comply with and perform its obligations and
undertakings under the Trust Agreement, the Shares and each Applicable
Authorized Participant Agreement, it being understood that any breach by the
Fund of such obligations and undertakings that is waived in accordance with the
provisions of the relevant instrument, conditions or agreement shall not amount
to non-compliance or non-performance for the purposes of this Clause 19.1,
and further undertakes to provide to the Counterparty each document and any
information that it is required to deliver to the Fund’s Shareholders in
accordance with [the Trust Agreement] at the same time that it provides such
document or information to such Shareholders (as the case may be), and to
provide to the Counterparty any public announcement made for the purposes of
any applicable law or regulation and any press release that it makes, in each
case in relation to Shares at the same time that it makes the relevant
announcement or press release.

19.2 The Fund undertakes that it will not publish or distribute any
written advertising materials (including without limitation internet
advertising materials) relating to Shares other than in accordance with all
applicable laws and that it will not publish or distribute any such materials
which include any content relating to the Counterparty or any Guarantor or any
of their Affiliates unless such content has previously been approved in writing
by the Counterparty.

19.3 The Fund shall not, and shall use its reasonable endeavors to
procure that each Authorized Participant does not, represent or suggest to any
potential investors in or distributors of Shares that either the Counterparty
or any of its Affiliates has structured Shares, or provided any advice or
information in respect of Shares (other than the information expressly referred
to in Clause 20.2(d) as having been provided by the Counterparty), or
accepted any responsibility in respect of the Prospectus.

40

The Counterparty

19.4 [                    ].

20. Representations and Warranties

The Fund

20.1 the Fund hereby represents and warrants as follows on the date of
this Agreement and (other than in the case of paragraphs (c) and (d)(iii)
on each day on which Commodity Contracts are entered into under Clause 3.2
or terminated under Clause 3.3 and (in the case of paragraph (e) below) on
the date of publication of the Prospectus:

	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
 that it is a Delaware statutory trust duly organized and validly
 existing under Delaware Statutory Trust Act and the laws of Delaware;

 
	
  

 	
  

 
	
 (b)

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

 
	
  

 	
  

 
	
 (c)

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

 
	
  

 	
  

 
	
 (d)

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

 
	
  

 	
  

 
	
  

 	
  

 	
   (i)

 	
 result in a breach of any provision of the Trust Agreement;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  (ii)

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

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

 
	
  

 	
  

 	
  

 
	
 (e)

 	
 that, to the best of its knowledge and belief, the Prospectus complies
 with all applicable laws and makes appropriate disclosure in relation to the
 Shares for the purposes of such laws; provided that
 nothing in this Clause 20.1(e) shall be regarded as a representation by
 the Fund as to the truth or accuracy of any of the information referred to in
 Clause 20.2(d); and

 
	
  

 	
  

 
	
 (f)

 	
 that, , to the best of its knowledge and belief, on the date hereof
 and at each time of Creation of a Commodity Contract (the Time of Creation),
 (i) the Registration Statement shall be effective and no stop order of the
 SEC with respect thereto shall have been issued and no proceedings for such
 purpose shall have been instituted or, to its knowledge, will then be
 contemplated by the SEC; (ii) the Registration Statement complied when it
 became effective and complies at the Time of Creation in all material
 respects with the requirements of the Securities Act, and the Prospectus
 complied as of its date, and complies at the Time of Creation, in all
 material respects with the requirements of the Securities Act; and the
 conditions to the use of Form S-1 have been satisfied; (iii) the Registration
 Statement did not when it became effective and does not at the Time of
 Creation contain an untrue statement of a material fact or omit to state a
 material fact required to be stated therein or necessary to make the
 statements therein not misleading, the Prospectus did not, as of its date and
 does not at the Time of Creation, contain an untrue statement of a material
 fact or omit to state a material fact required to be stated therein or
 necessary in order to make the statements therein, in the light of the
 circumstances under which they were made, not misleading; and, the documents
 comprising the Disclosure Package did not contain an untrue statement of a
 material fact or omit to state a material fact required to be stated therein
 or necessary in order to make the statements therein, in the light of the
 circumstances under which they were made, 

 

41

	
  

 	
  

 
	
  

 	
 not misleading, provided that nothing in this Clause
 20.1(f) shall be regarded as a representation by the Fund as to the truth or
 accuracy of any of the information referred to in Clause 20.2(d).

 

The Counterparty

20.2 The Counterparty hereby represents and warrants as follows on the
date of this Agreement and (other than in the case of paragraphs (c), (d),
(e) and (f)(iii) below) on each day on which Commodity Contracts are entered
into under Clause 3.2 or terminated under Clause 3.3 and (in the case
of paragraphs (d)(ii) and (d)(iii) below) on the date on which such information
is given and (provided that the Fund has given to the Counterparty not less
than five Business Days’ notice of its intention to publish the Prospectus,
supplementary prospectus or other formal disclosure document contemplated in
the definition of “Prospectus” or non-USA disclosure document concerned (a Relevant Document)
specifying the intended date of publication thereof and provided further that
prior to such intended date of publication (or the date of actual publication,
if later) the Counterparty has not notified the Fund that such information is
not, or will not then be, true and accurate in all material respects (in which
event the Counterparty undertakes to provide updated information for inclusion
in the Relevant Document as soon as reasonably practicable thereafter and the
representations and warranties in paragraph (d) will apply to such information
on the date such information is given and the date the Relevant Document is
published accordingly)) on the date the Relevant Document is published:

	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
 that the Counterparty is a corporation duly incorporated and validly
 existing under the laws of _________;

 
	
  

 	
  

 
	
 (b)

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

 
	
  

 	
  

 
	
 (c)

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

 
	
  

 	
  

 
	
 (d)

 	
 that:

 
	
  

 	
  

 
	
  

 	
  

 	
  (i)

 	
 the information which the Counterparty has expressly provided to the
 Fund in writing for inclusion in the supplementary prospectus to be issued on
 or around the Effective Date;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 any subsequent information which the Counterparty may provide to the
 Fund and expressly permit the Fund in writing to include in any Prospectus,
 or any supplementary prospectus (or otherwise) contemplated in the definition
 of “Prospectus”, by way of disclosure with respect to the Counterparty in its
 capacity as a Party to this Agreement or any Guarantor in its capacity as a
 party to any applicable Guarantee, and

 

42

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 any subsequent information which the Counterparty may provide to the
 Fund with respect to the Counterparty in its capacity as a Party to this
 Agreement or any Guarantor in its capacity as a party to any applicable
 Guarantee and expressly permit the Fund in writing to include in any
 disclosure document required for offering or distributing or listing Shares
 in any jurisdiction other than the USA (a non-USA disclosure document),

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 and which is included in the Prospectus or in a supplementary
 prospectus or listing particulars or in any other formal disclosure document
 contemplated in the definition of “Prospectus” or in a non-USA disclosure
 document as disclosure with respect to the Counterparty in its capacity as a
 Party to this Agreement or any Guarantor in its capacity as a party to any
 applicable Guarantee is true and accurate in all material respects as at the
 date and time given;

 

	
  

 	
  

 	
  

 	
  

 
	
 (e)

 	
 that it is an authorized licensee of CME Group Index Holdings, LLC
 and UBS Securities LLC in relation to each of the Commodity Indices with the
 right to perform its obligations under this Agreement and the Counterparty
 undertakes that it shall use commercially reasonable endeavors to maintain
 and preserve its status as such an authorized licensee during the term of
 this Agreement; and

 
	
  

 	
  

 
	
 (f)

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

 
	
  

 	
  

 
	
  

 	
  

 	
   (i)

 	
 result in a breach of any provision of its articles of association;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  (ii)

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

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

 

Mutual

20.3 Each of the Fund and the Counterparty represents and warrants to
the other as follows on the date of this Agreement and on each day on which
Commodity Contracts are entered into under Clause 3.2 or terminated under
Clause 3.3:

	
  

 	
  

 
	
 (a)

 	
 that it is acting for its own account, and it has made its own
 independent decisions to enter into this Agreement and each Creation or
 Cancellation of Commodity Contracts (each, a Transaction) and as to whether each
 Transaction is appropriate or proper for it based upon its own judgment and
 upon advice from such advisers as it has deemed necessary;

 
	
  

 	
  

 
	
 (b)

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

 
	
  

 	
  

 
	
 (c)

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

 
	
  

 	
  

 
	
 (d)

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

 
	
  

 	
  

 
	
 (e)

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

 

43

	
  

 	
  

 
	
 (f)

 	
 that it is entering into this Agreement and each Transaction and any
 other documentation relating to this Agreement or any Transaction as
 principal (and not as agent or in any other capacity, fiduciary or
 otherwise).

 

Acknowledgements

20.4 Each of
the Fund and its successors in title acknowledges and agrees that:

	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
 the Counterparty accepts no responsibility for:

 
	
  

 	
  

 
	
  

 	
  

 	
   (i)

 	
 the establishment, structure or choice of assets of the Fund;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  (ii)

 	
 the selection of any person performing services for or acting on
 behalf of the Fund;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 the economic terms or suitability of any Commodity Contracts or
 Transaction;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iv)

 	
 the preparation of or passing on the disclosure and other information
 contained in the Prospectus or any other agreements or documents used by the
 Fund or any other party in connection with the marketing and sale of Shares;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  (v)

 	
 the ongoing operations and administration of the Fund, including the
 furnishing of any information to the Fund which is not specifically required
 under the agreements to which the Counterparty is party; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (vi)

 	
 any other aspect of the existence of the Fund except for those
 matters specifically identified in this Agreement;

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
 Shares represent obligations of the Fund only and do not represent an
 interest in or obligation of the Counterparty. Subject and without prejudice
 to any rights and interests of the Shareholders pursuant to the Trust
 Agreement and the provisions of this Agreement, no recourse may be had by the
 Shareholders against the Counterparty or its assets with respect to the
 Shares;

 
	
  

 	
  

 
	
 (c)

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

 
	
  

 	
  

 	
  

 
	
 (d)

 	
 the Counterparty’s involvement with the development of the Shares is
 limited to its role as a Party to this Agreement and the Commodity Contracts.

 

21. Assignment

21.1 No Party shall assign, transfer, charge or otherwise deal with all
or any of its rights and/or obligations under this Agreement without the prior
written consent of the other Party.

22. Service Agents 

 [Reserved]

23. Authorized
Individuals

23.1 Each Party shall appoint one or more Authorized Individual(s), and
shall ensure that at all times one or more Authorized Individuals are
functioning and able to perform the activities of an Authorized Individual on
its behalf.

23.2 the Fund shall use reasonable endeavors to ensure that each
Authorized Participant appoints one or more Authorized Individual(s), and that
at all times one or more Authorized Individuals are 

44

functioning and able to perform the activities of an Authorized
Individual on behalf of the Authorized Participant.

23.3 Each Party may record telephone calls made by or to any of its
Authorized Individuals for the purposes of paragraph 5 of Schedule 6 and
paragraph 5 of Schedule 7, and each Party hereby consents to such
recording by the other Party.

24. Contact Details

Primary Fax Numbers

24.1 The Primary Fax Numbers of the Counterparty, the Fund and the
Registrar for the purpose of this Agreement are as follows:

	
  

 	
  

 
	
 (a)

 	
 Counterparty:

 
	
  

 	
  

 
	
  

 	
 Fax:     +[          ]

 
	
  

 	
  

 
	
 (b)

 	
 the Fund:

 
	
  

 	
  

 
	
  

 	
 Fax:     +[          ]

 
	
  

 	
  

 
	
 (c)

 	
 Registrar:

 
	
  

 	
  

 
	
  

 	
 Fax:     [          ]

 

24.2 the Fund shall notify the Counterparty of the Primary Fax Number
of each Authorized Participant.

24.3 Each Party shall at all times maintain for the purposes of this
Agreement a working fax number as its Primary Fax Number, with a working fax
machine attached thereto.

Change of Primary Fax Numbers

24.4 The
Counterparty may notify a change to its Primary Fax Number, and the Fund may
notify a change to its or to the Registrar’s or an Authorized Participant’s
Primary Fax Number, by giving notice thereof to the other Party, provided
that such notice shall only be effective on the later to occur of:

	
  

 	
  

 
	
 (a)

 	
 the date specified in the notice as the date on which such change is
 to take place; or

 
	
  

 	
  

 
	
 (b)

 	
 the day which is five Business Days following the day on which notice
 of such change was given.

 

Alternate Means of Communication

24.5 Where this Agreement provides that a Notice must or may be sent to
the Primary Fax Number of a Party, the Trustee or the Registrar, the notice may
be sent in such other manner as the Parties or their duly authorized
representatives may agree in writing from time to time, in lieu of or in
addition to sending it to the Primary Fax Number as provided herein.

45

25. Notices

Pricing Notices

25.1 Any Pricing Notice shall be in writing in English and shall be
signed by or on behalf of the Party giving it (or its duly authorized
representative). Any Pricing Notice shall be sent by fax to the recipient’s
Primary Fax Number.

25.2 Any Pricing Notice shall be deemed to have been received upon
sending, subject to confirmation of uninterrupted and error-free transmission
by a transmission report.

General Notices

25.3 Any General Notice shall be in writing in English and shall be
signed by or on behalf of the Party giving it (or its duly authorized
representative). Any General Notice shall be delivered by hand, sent by prepaid
recorded delivery or registered post (or registered airmail in the case of an
address outside the United Kingdom), to the address given in Clause 25.5
(or such other address as the receiving Party has specified to the sending
Party on at least five Business Days’ notice) or sent by fax to the recipient’s
Primary Fax Number.

25.4 Any General Notice shall, in the absence of earlier receipt, be
deemed to have been received as follows:

	
  

 	
  

 
	
 (a)

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

 
	
  

 	
  

 
	
 (b)

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

 
	
  

 	
  

 
	
 (c)

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

 
	
  

 	
  

 
	
 25.5

 	
 The addresses and numbers of the parties for the purposes of
 Clause 25.3 are:

 

	
  

 	
  

 	
  

 
	
 (a)

 	
 The Fund:

 
	
  

 	
  

 	
  

 
	
  

 	
 Address:

 	
 48

 
	
  

 	
  

 	
 Wall Street,
 New York, New York 10005

 
	
  

 	
  

 	
  

 
	
  

 	
 Attention:

 	
 [                    ]

 
	
  

 	
 Fax number:

 	
 [                    ]

 
	
  

 	
  

 	
  

 
	
  

 	
 with a copy
 to:

 
	
  

 	
  

 
	
  

 	
 ETF
 Securities USA LLC

 
	
  

 	
  

 	
  

 
	
  

 	
 Address:

 	
 48 Wall Street, 

 New York, 

 New York 10005
USA

 
	
  

 	
 Attention:

 	
  

 
	
  

 	
 Tel:

 	
 +1 (212) 918-4954

 
	
  

 	
 Fax:

 	
  

 

46

	
  

 	
  

 	
  

 
	
 (b)

 	
 The Counterparty:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Address:          [                    ]

 
	
  

 	
  

 	
 USA

 
	
  

 	
  

 	
  

 
	
  

 	
 Attention:

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Tel:

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Fax:

 	
  

 

25.6 Where a Party is required to send any notice under this Agreement
with copies to the Authorized Participants, or to an Authorized Participant
directly, such Party shall send a copy of such notice to each Authorized
Participant at such address or to such fax number as the Fund may notify to the
Counterparty in writing for such purpose from time to time, or to the address
set out for such Authorized Participant in the Direct Agreement to which it is
a party. Where a Party is required to send any notice under this Agreement to
another Party with a copy to that other party at an additional address or fax
number, the failure to send any such copies shall not be a breach of this
Agreement nor shall the failure to send any such copies invalidate or prejudice
the validity of the notice.

26. Other Agreements

26.1 The Fund shall not without the prior written consent of the
Counterparty effect any amendment to any Authorized Participant Agreement such
consent not to be unreasonably withheld or delayed.

26.2 The Fund undertakes that:

	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
 if it enters into a Facility Agreement (for the purpose of this
 Clause 26.2 with another Commodity Contract Counterparty (the New Commodity Contract
 Counterparty), it shall give written notice of the provisions
 of such agreement to all other Commodity Contract Counterparties (including,
 for the avoidance of doubt, the Counterparty). Each Commodity Contract
 Counterparty may then elect to: 

 
	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 keep the provisions of its existing Facility Agreement (or, in the
 case of the Counterparty, this Agreement); or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 amend the provisions of its Facility Agreement so as to match exactly
 the provisions of the Facility Agreement entered into by the Fund and the New
 Commodity Contract Counterparty (save for those clauses of that Facility
 Agreement that are necessary to be kept unamended because of its tax or
 regulatory position, the Creation Limits, the Redemption Limits and, in the
 case of any Commodity Contract Counterparty being a Calculation Agent or
 having a different position in relation to the DJ-UBS CISM, any
 differences reasonably considered by the Fund to be consequential upon the
 Counterparty’s position as Calculation Agent or its or its Affiliate’s
 position in relation to the DJ-UBS CISM), in which event it
 shall notify the Fund accordingly, and on such notice becoming effective in
 accordance with the provisions of its Facility Agreement, its Facility
 Agreement shall be so amended without any further action being required to be
 taken by either party; and

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
 if it amends the provisions of any Facility Agreement then written
 notice of the amendments shall be given to all other Commodity Contract
 Counterparties (including, for the avoidance of doubt, the Counterparty) who
 may then elect to:

 
	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 keep the provisions of its existing Facility Agreement; or

 

47

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 amend the provisions of its Facility Agreement so as to match exactly
 the provisions of the Facility Agreement entered into by the Fund and the new
 Commodity Contract Counterparty (save for those clauses of that Facility
 Agreement that are necessary to be kept unamended because of its tax or
 regulatory position, the Creation Limits, the Redemption Limits and, in the
 case of any Commodity Contract Counterparty being a Calculation Agent or
 having a different position in relation to the DJ-UBS CISM,
 any differences reasonably considered by the Fund to be consequential upon
 the Counterparty’s position as Calculation Agent or its or its Affiliate’s
 position in relation to the DJ-UBS CISM), in which event it
 shall notify the Fund accordingly, and on such notice becoming effective in
 accordance with the provisions of its Facility Agreement, its Facility
 Agreement shall be so amended without any further action being required to be
 taken by either party.

 

26.3 The Fund may, subject as provided in this Clause, appoint
Commodity Contract Counterparties in its sole discretion. The Fund shall give
to the Counterparty and each other existing Commodity Contract Counterparty not
less than ten Business Days’ written notice prior to appointing any such new
Commodity Contract Counterparty identifying the person and the date from which,
or not prior to which, such appointment shall become effective. Such
appointment may become effective unless the Counterparty or any other Commodity
Contract Counterparty:

	
  

 	
  

 
	
 (a)

 	
 considers in its reasonable belief and acting in good faith that such
 proposed new Commodity Contract Counterparty should not be appointed for
 credit, operational, or reputational reasons (including, for the avoidance of
 doubt, where the Counterparty considers in its reasonable belief and acting
 in good faith that such appointment could adversely affect the reputation of
 either the Fund or any existing Commodity Contract Counterparty), or because
 the Counterparty would not in the ordinary course of its commodity
 derivatives business enter into transactions with the proposed new Commodity
 Contract Counterparty, but not on grounds of competition; and 

 
	
  

 	
  

 
	
 (b)

 	
 notifies the Fund of the same giving reasons within the period of ten
 Business Days from the date of the notice to it from the Fund.

 

27. Amendment

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

28. Entire Agreement

28.1 This Agreement constitutes the entire agreement of the Parties in
respect of the subject matter of this Agreement.

28.2 Each Party agrees and acknowledges that in entering into this
Agreement it does not rely on any representation not expressly set out in this
Agreement of any nature made to it by any person (whether a Party or not). Each
Party irrevocably waives all claims, rights and remedies in relation to any
such representations made to it before entering into this Agreement.

28.3 Nothing in this Clause 28 excludes or restricts any liability
or remedy for fraudulent misrepresentation or fraudulent concealment.

29. Applicable Law

This Agreement shall be governed by and construed in accordance with
the laws of the State of New York (regardless of the laws that might otherwise
govern under applicable New York conflict of laws principles) as to all
matters, including matters of validity, construction, effect, performance and
remedies.

48

30. Jurisdiction

Each Party hereto irrevocably consents to the jurisdiction of the
courts of the State of New York and of any federal court located in the Borough
of Manhattan in such State in connection with any action, suit or other
proceeding arising out of or relating to this Agreement or any action taken or
omitted hereunder, and waives any claim of forum non conveniens and any objections as
to laying of venue. Each Party further waives personal service of any summons,
complaint or other process and agrees that service thereof may be made by
certified or registered mail directed to such Party at such Party’s address for
purposes of notices hereunder. Each Party hereby waives its right to a trial by
jury of any claim arising under or in connection with this Agreement.

31. Limited Recourse and Non-Petition

31.1 The debts, liabilities, obligations, expenses, costs, charges,
indemnities and reserves incurred, contracted for, attributable to or otherwise
existing with respect to a particular Fund shall be enforceable against the
assets of such Fund only, and not against the assets of the Trust generally or
of any other Fund and, unless otherwise provided by the Sponsor, none of the
debts, liabilities, obligations, expenses, costs, charges, indemnities and
reserves incurred, contracted for, attributable to or otherwise existing with
respect to the Trust generally or any other Fund shall be enforceable against
the assets of such Fund. Any general liabilities, expenses, costs, charges,
indemnities or reserves of the Trust which are not readily identifiable as
being held with respect to any particular Fund shall be allocated and charged
by the Sponsor to and among any one or more of the Series in such manner and on
such basis as the Sponsor in its sole discretion deems fair and equitable.
Pursuant to the Delaware Statutory Trust Act (as amended) and the Trust
Agreement, any party extending credit to, contracting with or having any claim
against any Fund of the Trust may look only to the assets of such Fund to
satisfy or enforce any debt with respect to that Fund. 

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

32. Counterparts

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

SIGNED by the Parties by their duly authorized
representatives:

	
  

 	
  

 
	
 Signed by:

 	
 )

 
	
  

 	
 )

 
	
 

 	
 )

 
	
 duly
 authorized for and on behalf of 

 	
 )

 
	
 ETFS Collateralized Commodities Trust 

 separately on behalf of each of its Funds

 	
 )

 
	
  

 	
  

 
	
  

 	
  

 
	
  [Counterparty]

 	
 )

 
	
  

 	
 )

 
	
 By: 

 	
 )

 
	
 

 	
 )

 

49

Schedule 1
THE FUNDS

Short Funds

ETFS Short Oil

ETFS Short Natural Gas

ETFS Short Copper

ETFS Short Wheat

ETFS Short Gold

Long Funds:

ETFS Oil 

ETFS Natural Gas

ETFS Copper

ETFS Wheat

ETFS Composite Agriculture

ETFS Composite Industrial Metals

ETFS Composite Energy

ETFS All Commodities

Leveraged Funds

ETFS Leveraged Oil 

ETFS Leveraged Natural Gas 

ETFS Leveraged Copper 

ETFS Leveraged Wheat 

ETFS Leveraged Gold

50

Schedule 2

CLASSES

Part A 

Classes of Short Individual Commodity Contracts and Short Individual Shares

The classes of Short Individual Commodity Contracts and Short
Individual Shares as at the Effective Date are as follows: 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Short Individual Commodity Contract

 	
  

 	
 Short Individual Shares

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Short Oil

 	
  

 	
 ETFS Short
 Oil

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Short
 Natural Gas

 	
  

 	
 ETFS Short
 Natural Gas

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Short Copper

 	
  

 	
 ETFS Short
 Copper

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Short Wheat

 	
  

 	
 ETFS Short
 Wheat

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Short Gold

 	
  

 	
 ETFS Short
 Gold

 

Part B

Classes
of Long Individual Commodity Contracts and Long Individual Shares

The classes of Long Individual Commodity Contracts and Long Individual
Shares as at the Effective Date are as follows:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Long Individual Commodity Contract

 	
  

 	
 Long Individual Shares

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Long Oil

 	
  

 	
 ETFS Oil

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Long Natural
 Gas

 	
  

 	
 ETFS Natural
 Gas

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Long Copper

 	
  

 	
 ETFS Copper

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Long Wheat

 	
  

 	
 ETFS Long
 Wheat

 

Part C 

Classes of Long Index Commodity Contracts and
Long Index Shares

The classes of
Long Index Commodity Contracts and Long Index Shares as at the Effective Date
are as follows:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Long Index Commodity Contract

 	
  

 	
 Long Index Security 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Composite
 Agriculture

 	
  

 	
 ETFS
 Composite Agriculture 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Composite
 Industrial Metals

 	
  

 	
 ETFS
 Composite Industrial Metals

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Composite
 Energy

 	
  

 	
 ETFS
 Composite Energy

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 All
 Commodities

 	
  

 	
 ETFS All
 Commodities

 

51

Part D 

Classes of Leveraged Individual Commodity Contracts and Leveraged Individual
Shares

The classes of Leveraged Commodity Contracts and Leveraged Individual
Shares as at the Effective Date are as follows:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Leveraged Commodity Contract

 	
  

 	
 Leveraged Individual Security

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Leveraged
 Oil

 	
  

 	
 ETFS
 Leveraged Oil

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Leveraged
 Natural Gas

 	
  

 	
 ETFS
 Leveraged Natural Gas

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Leveraged
 Copper

 	
  

 	
 ETFS
 Leveraged Copper

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Leveraged
 Wheat

 	
  

 	
 ETFS
 Leveraged Wheat

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Leveraged Gold

 	
  

 	
 ETFS
 Leveraged Gold

 

52

Schedule 3

COMMODITY INDICES

Part E 

Individual Commodity Contracts

The following
are the Individual Commodity Indices for each class of Short Individual
Commodity Contract. Long Individual Commodity Contract and Leveraged Individual
Commodity Contract (and therefore the corresponding class of Short Individual
Security Long Individual Security and Leveraged Individual Security):

	
  

 	
  

 	
  

 
	
 Fund

 	
  

 	
 Individual Commodity Index

 
	
  

 	
  

 	
  

 
	
 ETFS Oil

 	
  

 	
 [The Dow
 Jones-UBS Brent Oil Sub-IndexSM ]

 
	
  

 	
  

 	
  

 
	
 ETFS Natural
 Gas

 	
  

 	
 [The Dow
 Jones-UBS Natural Gas Sub-IndexSM ]

 
	
  

 	
  

 	
  

 
	
 ETFS Copper

 	
  

 	
 [The Dow
 Jones-UBS Copper Sub-IndexSM ]

 
	
  

 	
  

 	
  

 
	
 ETFS Wheat

 	
  

 	
 [The Dow
 Jones-UBS Wheat Sub-IndexSM ]

 
	
  

 	
  

 	
  

 
	
 ETFS Short
 Oil

 	
  

 	
 [The Dow
 Jones-UBS Brent Oil Sub-IndexSM ]

 
	
  

 	
  

 	
  

 
	
 ETFS Short
 Natural Gas

 	
  

 	
 [The Dow
 Jones-UBS Natural Gas Sub-IndexSM ]

 
	
  

 	
  

 	
  

 
	
 ETFS Short
 Copper

 	
  

 	
 [ The Dow
 Jones-UBS Copper Sub-IndexSM ]

 
	
  

 	
  

 	
  

 
	
 ETFS Short
 Wheat

 	
  

 	
 [The Dow
 Jones-UBS Wheat Sub-IndexSM ]

 
	
  

 	
  

 	
  

 
	
 ETFS Short
 Gold

 	
  

 	
 [The Dow
 Jones-UBS Gold Sub-IndexSM ]

 
	
  

 	
  

 	
  

 
	
 ETFS
 Leveraged Oil

 	
  

 	
 [The Dow
 Jones-UBS Brent Oil Sub-IndexSM ]

 
	
  

 	
  

 	
  

 
	
 ETFS
 Leveraged Natural Gas

 	
  

 	
 [The Dow
 Jones-UBS Natural Gas Sub-IndexSM ]

 
	
  

 	
  

 	
  

 
	
 ETFS
 Leveraged Copper

 	
  

 	
 [The Dow
 Jones-UBS Copper Sub-IndexSM ]

 
	
  

 	
  

 	
  

 
	
 ETFS
 Leveraged Wheat

 	
  

 	
 [The Dow
 Jones-UBS Wheat Sub-IndexSM ]

 
	
  

 	
  

 	
  

 
	
 ETFS
 Leveraged Gold

 	
  

 	
 [The Dow
 Jones-UBS Gold Sub-IndexSM ]

 

Part F 

Index Commodity Contracts

The following are the Composite Commodity Indices for each class of
Commodity Contract (and therefore the corresponding Fund:

	
  

 	
  

 	
  

 
	
 Fund

 	
  

 	
 Composite Commodity Index

 
	
  

 	
  

 	
  

 
	
 ETFS
 Composite Agriculture

 	
  

 	
 [The Dow
 Jones-UBS Agriculture Sub-IndexSM ]

 
	
  

 	
  

 	
  

 
	
 ETFS
 Composite Industrial Metals

 	
  

 	
 [The Dow
 Jones-UBS Industrial Metals Sub-IndexSM ]

 
	
  

 	
  

 	
  

 
	
 ETFS
 Composite Energy

 	
  

 	
 [The Dow
 Jones-UBS Ex-Energy Sub-IndexSM]

 
	
  

 	
  

 	
  

 
	
 ETFS All
 Commodities

 	
  

 	
 [The Dow
 Jones-UBS Commodity IndexSM ]

 

53

Schedule 4

FORM OF CREATION NOTICE

Creation Notice for Commodity Contracts –
Short, Long and Leveraged

(A separate Creation Notice
must be used in respect of the Creation of Commodity Contracts corresponding
with each separate Application Form received by the Fund for Shares

This is a Creation Notice for the purposes of the Facility Agreement
(the Facility Agreement)
between [Counterparty] and the Trust dated
[               ]
2011. Terms used in this Creation Notice have the meanings given to them in the
Facility Agreement. 

Nothing in this Creation Notice shall be
taken as varying any provision of, or constituting a waiver by either party of
any of its rights under, the Facility Agreement. In the event of any
inconsistency between the provisions of the Facility Agreement and this
Creation Notice, the Facility Agreement shall prevail. The parties acknowledge
that the Equivalent Number of each class of Commodity Contracts corresponding
to the Shares referred to below shall be determined in accordance with the
Facility Agreement.

	
  

 	
  

 	
  

 
	
  

 	
 Creation Notice – to be completed by the Fund

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Subject to
 the terms of the Facility Agreement, the Fund hereby requests the Creation of
 the Equivalent Number of Commodity Contracts corresponding with the number
 and class of Shares set out below:

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Class of
 Shares:   _______________

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 ____________________________________________________________________________

 	
  

 
	
  

 	
                      
                
                
  [Code]                    
                
                
              Share
 Name*

 	
  

 
	
  

 	
 Number of
 Shares: ____________________

 	
  

 
	
  

 	
 ____________________________________________________________________________

 	
  

 
	
  

 	
               
                 
                 
            Number       
                 
                 
                 
          
 Words

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Name of
 relevant Authorized Participant: 

 	
  

 
	
  

 	
 _________________________________________________________________

 	
  

 
	
  

 	
 (A copy of
 the Application Form from the relevant Authorized Participant is attached.)

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Signed by
 the Fund:       
                 ______________________________________________________________________________________

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Print Name:                     
    _____________________________________________________________________________________

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Date:
 _______________________ Time*: _______________________           
                    Reference*: ________________________

 	
  

 
	
  

 	
                     (dd/mm/yy)

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 (Subject to
 the Facility Agreement, today’s date is the Pricing Date provided this notice
 is received by received by [     ] a.m..)

 * Optional

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Confirmation of Receipt of Creation Notice – to be completed by
 [Counterparty] 

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  [Counterparty] hereby confirms its
 acceptance of the above Creation Notice for the purposes of the Creation of
 the Equivalent Number of Commodity Contracts corresponding with the number
 and class of Shares set out below:

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Class of
 Shares:   _______________

 	
  

 
	
  

 	
 _________________________________________________

 	
  

 
	
  

 	
                    
 [Code]                    Share
 Name*

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Number of
 Shares:
 _______________

 	
  

 
	
  

 	
 ___________________________________________________________________

 	
  

 
	
  

 	
                   
         
                   
    Number                    
              
                   
       
 Words

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Comments:

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Signed by

[Counterparty]:          _______________________________________________________

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Print

Name:                 
               _______________________________________________________

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 * Optional

 	
  

 

 54

Pricing Confirmation Notice for Creation of
Commodity Contracts –Short, Long and 
Leveraged

(A separate pricing
confirmation notice must be given in respect of each separate Creation Notice
for Settlement Pricing given by the Fund to [Counterparty].)

Terms used in this notice have the meanings given to them in the
Facility Agreement (the Facility Agreement) between [Counterparty]. and the
Trust dated
[                    ]
2011 in relation to the Creation of Commodity Contracts. 

Nothing in this notice shall be taken as varying any provision of, or
constituting a waiver by either party of any of its rights under, the Facility
Agreement. In the event of any inconsistency between the provisions of the
Facility Agreement and this notice, the Facility Agreement shall prevail. The
parties acknowledge that the Equivalent Number of each class of Commodity
Contracts corresponding to the Shares referred to below shall be determined in
accordance with the Facility Agreement.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Confirmation of pricing – to be completed by the Fund and
 countersigned by [Counterparty]

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 The
 Equivalent Number of Commodity Contracts corresponding with the number and
 class of Shares set out below have been Created, at the price set out below:

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Class of
 Share:      ________________

 	
  

 
	
  

 	
 ______________________________________________________________________

 	
  

 
	
  

 	
                 
                   
     [Code]             
                    
                    
                    Share Name*

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Number of
 Shares: _________________

 	
  

 
	
  

 	
 ____________________________________________________________________

 	
  

 
	
  

 	
                   
                     
Number                    
                      
              
                   Words

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Name of relevant Authorized Participant:

 	
  

 
	
  

 	
 _______________________________________________________________________________________

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Price per
 Share:

 	
 US$
 ___________________________

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Number of
 Shares:

 	
 _______________________________

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Total Price:

 	
 US$
 ___________________________

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Settlement
 Date (T+3):

 	
 _______________________________

 	
  

 
	
  

 	
  

 	
             
        (dd/mm/yy)

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Signed by

Fund:                               _______________________________________________

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Print Name:            
                         _______________________________________________

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Countersigned
 by [Counterparty]: ________________________________________

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Print Name:          
                        
          ___________________________________________

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 who confirms
 that the pricing is correct.

 	
  

 

 55

Pricing Confirmation Notice for
Issue of Shares –Short, Long and Leveraged 

(A separate pricing
confirmation notice must be given in respect of each separate Application for

Settlement Pricing given by the Authorized Participant to the Fund.)

Terms used in this
notice have the meanings given to them in the [Facility Agreement]. 

Nothing in this notice shall be taken as varying any provision of, or
constituting a waiver by either party of any of its rights under, the
Authorized Participant Agreement between the Trust and the Authorized
Participant relating to the Short, Long or Leveraged Shares named below (the Authorized
Participant Agreement). In the event of any inconsistency between
the provisions of the Authorized Participant Agreement and this notice, the
Authorized Participant Agreement shall prevail. The parties acknowledge that
the Equivalent Number of each class of Commodity Contracts corresponding to the
Short, Long or Leveraged Shares referred to below shall be determined in
accordance with the Facility Agreement dated
[                    ]
2011 between the Trust and [Counterparty]. 

	
  

 	
  

 	
  

 	
  

 
	
 Confirmation of pricing – to be completed
 by the Fund and countersigned by Authorized Participant

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 The number and class of Shares set out below will, subject to the
 Authorized Participant Agreement, be issued on the Settlement Date at the
 price set out below:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Class of Share: _____________

 
	
 ______________________________________________________________

 
	
  [Code]

 	
                                Share Name*

 	
  

 
	
  

 
	
  

 	
  

 	
  

 
	
 Number of Shares: ____________________

 	
  

 
	
 ____________________________________________________________

 
	
 Number

 	
            Words

 
	
  

 
	
  

 
	
 Name of relevant Authorized Participant: 

 
	
 _______________________________________________________________________

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Price per Share:

 	
 US$_________________________

 
	
 Number of Shares:

 	
 ____________________________

 
	
 Total Price:

 	
 US$_________________________

 
	
 Settlement Date (T+3):

 	
 ____________________________

 
	
  

 	
                    (dd/mm/yy)

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 
	
 Signed by the Fund:

 	
 _______________________________________________

 
	
 Print Name:

 	
 _______________________________________________

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Countersigned by Authorized Participant:

 
	
  

 	
 _______________________________________________

 
	
 Print Name:

 	
 _______________________________________________

 
	
  

 
	
 who confirms that the pricing is correct.

 

56

Schedule 5

FORM OF CANCELLATION NOTICE

Cancellation Notice for Commodity Contracts
–Short, Long and Leveraged

(A separate Cancellation Notice
must be used for the Cancellation of Commodity Contracts corresponding with
each separate Redemption Form received by the Fund for Shares (for Settlement
Pricing))

This is a Cancellation Notice for the purposes of the Facility
Agreement (the Facility Agreement) between [Counterparty] and the Trust
dated
[                    ]
2011. Terms used in this Cancellation Notice have the meanings given to them in
the Facility Agreement.  

Nothing in this Cancellation Notice shall be taken as varying any
provision of, or constituting a waiver by either party of any of its rights
under, the Facility Agreement. In the event of any inconsistency between the
provisions of the Facility Agreement and this Cancellation Notice, the Facility
Agreement shall prevail. The parties acknowledge that the Equivalent Number of
each class of Commodity Contracts corresponding to the Shares referred to below
shall be determined in accordance with the Short and Leveraged Facility
Agreement.

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Cancellation Notice – to be completed by
 the Fund

 
	
  

 
	
 Subject to the terms of the Facility Agreement, The Fund hereby
 requests the Cancellation of the Equivalent Number of Commodity Contracts
 corresponding with the number and class of Shares set out below:

 
	
  

 	
  

 	
  

 
	
 Class of
 Share:       _____________

 	
  

 	
  

 
	
 ______________________________________________________________________

 	
  

 
	
  [Code]

 	
  

 	
 Share Name*

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 Number of Shares:____________________

 	
  

 	
  

 
	
 ____________________________________________________________________

 	
  

 
	
 Number

 	
        Words

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 Name of relevant Authorized Participant: 

 	
  

 
	
 _______________________________________________________________

 	
  

 
	
 (A
 copy of the Redemption Form from the relevant Authorized Participant is
 attached.)

 
	
  

 	
  

 	
  

 	
  

 
	
 Signed by the Fund: 

 	
  

 	
 _______________________________________________

 
	
 Print Name: 

 	
 _______________________________________________

 
	
  

 	
  

 	
  

 	
  

 
	
 Date: _______________________ Time*: _______________________                    Reference*: _______________________

 
	
             (dd/mm/yy)

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 (Subject
 to the Facility Agreement, today’s date is the Pricing Date provided this
 notice is received by received by [     ]..)

 
	
 * Optional

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	
 Confirmation of Receipt of Cancellation
 Notice – to be completed by [Counterparty]

 
	
  

 
	
  

 
	
 [Counterparty] hereby confirms its acceptance of the above
 Cancellation Notice for the purposes of the Cancellation of the Equivalent
 Number of Commodity Contracts corresponding with the number and class of
 Shares set out below:

 
	
  

 
	
 Class of Share:          _____________

 	
  

 	
  

 	
  

 	
  

 
	
 ______________________________________________________________

 	
  

 
	
 [Code]

 	
  

 	
 Share Name*

 	
  

 
	
  

 	
  

 
	
 Number of Shares: ____________________

 	
  

 	
  

 
	
 ____________________________________________________________

 	
  

 
	
 Number

 	
 Words

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 Comments:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 Signed by [Counterparty]:

 	
 _______________________________________________

 	
  

 
	
 Print Name:

 	
 _______________________________________________

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 * Optional

 	
  

 	
  

 	
  

 

57

Pricing Confirmation Notice for Cancellation
of Commodity Contracts –– Short, Long and Leveraged

(A separate pricing
confirmation notice must be given in respect of each separate Cancellation
Notice for Settlement Pricing given by the Trust to [Counterparty].)

Terms used in this notice have the meanings given to them in the
Facility Agreement (the Facility Agreement) between [Counterparty] and the Trust
dated
[                    ]
2011.

Nothing in this notice shall be taken as varying any provision of, or
constituting a waiver by either party of any of its rights under, the Facility
Agreement. In the event of any inconsistency between the provisions of the
Share Facility Agreement and this notice, the Facility Agreement shall prevail.
The parties acknowledge that the Equivalent Number of each class of Commodity
Contracts corresponding to the Shares referred to below shall be determined in
accordance with the Facility Agreement.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Confirmation of pricing – to be completed by the Fund and
 countersigned by [Counterparty]

 	
  

 
	 
 
	
  

 
	
  

 	
 The
 Equivalent Number of Commodity Contracts corresponding with the number and
 class of Shares set out below have been Cancelled, at the price set out
 below:

 	
  

 
	

 

 	

 

 	

 

 
	
  

 	
  

 	
  

 
	
  

 	
 Class of
 Share:      ______________

 	
  

 
	
  

 	
 ____________________________________________________________

 	
  

 
	
  

 	
                                         [Code]                                                     Share
 Name*

 	
  

 
	

 

 	

 

 	

 

 
	
  

 	
  

 	
  

 
	
  

 	
 Number of
 Shares: _________________

 	
  

 
	
  

 	
 ___________________________________________________________

 	
  

 
	
  

 	
                                           Number                                                           Words

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Name of
 relevant Authorized Participant: __________________________

 	
  

 
	

 

 	

 

 	

 

 
	
  

 	
 Price per
 Share:

 	
 US$
 ______________________

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Number of
 Shares:

 	
 __________________________

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Total Price:

 	
 US$
 ______________________

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Settlement
 Date (T+3):

 	
 __________________________

 	
  

 
	
  

 	
  

 	
                (dd/mm/yy)

 	
  

 
	

 

 	

 

 	

 

 
	
  

 	
  

 	
  

 
	
  

 	
 Signed by the Fund:               ____________________________________________________

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Print
 Name:                    
  _______________________________________________________

 	
  

 
	
  

 	
  

 	
  

 
	

 

 	

 

 	

 

 
	
  

 	
  

 	
  

 
	
  

 	
 Countersigned
 by [Counterparty]: ________________________________________________

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Print

Name:                                              ________________________________________________

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 who confirms
 that the pricing is correct.

 	
  

 
	
  

 	
  

 	
  

 

58

Pricing Confirmation Notice for Redemption of
Shares –Short, Long and Leveraged
(A separate
pricing confirmation notice must be given in respect of each separate
Redemption Form for Pricing given by the Authorized Participant to the Fund.)

Terms used in this notice have the meanings given to them in the
[Facility Agreement] of the Shares pursuant to the Trust Agreement dated [          
          ] 2011 constituting
the same. 

Nothing in this notice shall be taken as varying any provision of, or
constituting a waiver by either party of any of its rights under, the [cite
document containing primary definitions]. In the event of any
inconsistency between the provisions of the [cite document containing primary
definitions] and this notice, the [cite document containing primary
definitions] shall prevail. The parties acknowledge that the Equivalent Number
of each class of Commodity Contracts corresponding to the Shares referred to
below shall be determined in accordance with the Facility Agreement dated [   ]          2011 between the Trust and [Counterparty].

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Confirmation of pricing – to be completed by the Fund and
 countersigned by Authorized Participant

 	
  

 
	 
 
	
  

 
	
  

 	
 The number
 and class of Shares set out below will, subject to the [cite document
 containing primary definitions], be Redeemed on the Settlement Date at the
 price set out below:

 	
  

 
	

 

 	

 

 	

 

 
	
  

 	
  

 	
  

 
	
  

 	
 Class of
 Share:      ______________

 	
  

 
	
  

 	
 ____________________________________________________________

 	
  

 
	
  

 	
                                         [Code]                                                     Share
 Name*

 	
  

 
	

 

 	

 

 	

 

 
	
  

 	
  

 	
  

 
	
  

 	
 Number of
 Shares: _________________

 	
  

 
	
  

 	
 ___________________________________________________________

 	
  

 
	
  

 	
                                           Number                                                           Words

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Name of
 relevant Authorized Participant: _______________________________

 	
  

 
	

 

 	

 

 	

 

 
	
  

 	
 Price per
 Share:

 	
 US$
 ______________________

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Number of
 Shares:

 	
 __________________________

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Total Price:

 	
 US$
 ______________________

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Settlement
 Date (T+3):

 	
 __________________________

 	
  

 
	
  

 	
  

 	
                (dd/mm/yy)

 	
  

 
	

 

 	

 

 	

 

 
	
  

 	
  

 	
  

 
	
  

 	
 Signed by the Fund:               __________________________________________________

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Print
 Name:                            __________________________________________________

 	
  

 
	
  

 	
  

 	
  

 
	

 

 	

 

 	

 

 
	
  

 	
  

 	
  

 
	
  

 	
 Countersigned
 by [Counterparty]: ______________________________________________

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Print Name:                                    ______________________________________________

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 who confirms
 that the pricing is correct.

 	
  

 
	
  

 	
  

 	
  

 

59

Shedule 6

CREATION OF COMMODITY CONTRACTS

	
  

 	
  

 	
  

 
	
 1. A Fund may on any Fund Business Day prior to the Notice Deadline
 give (or cause to be given on its behalf) to the Counterparty a notice in the
 form attached as Schedule 4 (or such other form as may be agreed between the
 Fund and the Counterparty from time to time) (a Creation Notice)
 which:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
 requests that the Counterparty Create the Equivalent Number of
 Commodity Contracts determined by reference to a number and class of Shares
 to be issued by the Fund specified in such Creation Notice; and

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 identifies (by attachment or specification):

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 a request submitted to the Fund by the Relevant Authorized
 Participant for the issue of Shares to which the Creation Notice corresponds;
 or

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 where the Fund has received a request for the issue of Shares and one
 or more requests for Redemption of Shares of the same Fund, such requests and
 specifies the number of Commodity Contracts to be Created pursuant to such
 requests.

 
	
  

 	
  

 	
  

 
	
 2. A Creation Notice shall be invalid:

 
	
  

 	
  

 	
  

 
	
 (a)

 	
 if it does not specify a number and the Fund in respect of which
 Shares are to be issued;

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 if it does not identify in accordance with sub-paragraph 1(b) above
 the request(s) for the issue (or Redemption) of Shares submitted to the Fund
 by the Relevant Authorized Participant;

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 if it is lodged or deemed received on an Fund Business Day when the
 right to Redeem Shares of the relevant class is suspended pursuant to section
 9(e) of the Trust Agreement and the Sponsor has given the Counterparty
 written notice of the suspension on or prior to such day and no notice has
 been given to the Counterparty by the Sponsor that such suspension has been
 terminated;

 
	
  

 	
  

 	
  

 
	
 (d)

 	
 if the Creation of Commodity Contracts pursuant to the Creation
 Notice would result in any Creation Limit being exceeded, and the
 Counterparty does not agree to that Creation Limit being exceeded (in which
 event such Creation Notice will not be capable of being invalidated under
 this sub-paragraph (e) in respect of the greatest number of Commodity
 Contracts of the relevant class or classes that would not result in such
 Creation Limit being exceeded);

 
	
  

 	
  

 	
  

 
	
 (e)

 	
 if the Creation which would result from that Creation Notice would
 not equal or exceed the Minimum Creation Amount for the Fund to which that
 Creation Notice relates, and the Counterparty does not agree to the Creation
 notwithstanding such shortfall;

 
	
  

 	
  

 	
  

 
	
 (f)

 	
 if the Counterparty (acting reasonably) determines by 11am (or on a
 day when the time difference between London and New York is six rather than
 five hours, by 10 a.m.) that the sum of the Prices of the Commodity Contracts
 which would thereby be Created, plus all other Creation Amount(s) not yet
 paid by that Relevant Authorized Participant, less all Cancellation Amounts
 not yet paid by the Counterparty to the Fund in respect of Cancellations
 corresponding with Redemptions of Shares by that Relevant Authorized
 Participant would (after taking account of any collateral and/or set-off
 arrangements in favor of the Counterparty in respect of the Relevant
 Authorized Participant) exceed the Notified Credit Limit with respect to the
 Relevant Authorized Participant (if any) applicable on that day, and the
 Counterparty does not agree to the Creation notwithstanding such excess;

 
	
  

 	
  

 	
  

 
	
 (g)

 	
 if at the time it is deemed received by the Counterparty either a
 Fund Event of Default or Potential Fund Event of Default has occurred and is
 continuing, and the Counterparty does 

 

60

	
  

 	
  

 	
  

 
	
  

 	
 not agree to the Creation notwithstanding such Fund Event of Default
 or Potential Fund Event of Default or the giving of such notice;

 
	
  

 	
  

 
	
 (h)

 	
 if it is not confirmed in accordance with paragraph 5 below;

 
	
  

 	
  

 	
  

 
	
 (i)

 	
 if a Compulsory Pricing Date has been notified under Clause 9 or
 Clause 15.4 for a class of Commodity Contract to which that Creation Notice
 relates and the Creation Notice is received or deemed received on or after:
 (i) where notice of a Compulsory Pricing Date has been given in accordance
 with Clause 9 (other than Clause 9.1(a)), the date of such notice; and (ii)
 where a Compulsory Pricing Date has been notified in accordance with Clause
 9.1(a) or Clause 15.4, the date which is three Business Days prior to the
 Compulsory Pricing Date; 

 
	
  

 	
  

 	
  

 
	
 (j)

 	
 if a Hedging Disruption Event has occurred and is continuing in
 respect of the Relevant Market for one or more commodities by reference to
 the Settlement Prices for which the Commodity Index relating to the class of
 Commodity Contracts to which the Creation Notice relates is calculated (in
 whole or in part), and the Counterparty has given notice of that Hedging
 Disruption Event, and has not given notice of its cessation, in each case in
 accordance with Clause 16.1, and the Counterparty does not agree to the
 Creation notwithstanding such Hedging Disruption Event; or

 
	
  

 	
  

 	
  

 
	
 (k)

 	
 the Counterparty has given notice to the Fund of the existence of a
 Material Adverse Change, and no agreement has been reached by the Parties
 under Clause 8 in connection with such Material Adverse Change, and the
 Counterparty does not agree to the Creation notwithstanding the existence of
 such Material Adverse Change,

 
	
  

 	
  

 	
  

 
	
 and, save as provided under sub-paragraph (d) above and paragraph 5,
 no Commodity Contracts shall be Created in respect of or under that Creation
 Notice.

 
	
  

 	
  

 	
  

 
	
 3. A Creation Notice which is received by the Counterparty on an Fund
 Business Day after the Notice Deadline shall be deemed to be received by the
 Counterparty at 8.00 a.m. on the following Fund Business Day, unless the
 Counterparty agrees to treat that Creation Notice as having been received
 prior to the Notice Deadline in which case it shall be deemed to have been
 received by the Counterparty prior to the Notice Deadline. For the purposes
 of these Creation Procedures a Creation Notice that relates to the Creation
 of Commodity Contracts in respect of more than one class of Commodity Share
 will be deemed to comprise a separate Creation Notice for the Creation of
 Commodity Contracts in respect of each such class of Commodity Share. 

 
	
  

 	
  

 	
  

 
	
 4. If a Creation Notice in relation to a class of Commodity Contracts
 is deemed received by the Counterparty prior to the Notice Deadline on an
 Fund Business Day (Day 1): 

 
	
  

 	
  

 	
  

 
	
 (a)

 	
 if Day 1 is not a Pricing Day for such Individual Commodity Contracts
 or, in the case of Index Commodity Contracts, if Day 1 is not a Pricing Day
 for each of the commodities by reference to the Settlement Prices for which
 the Commodity Index relating to the class of Index Commodity Contracts to
 which the Creation Notice relates is calculated (in whole or in part):

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 the Fund may by written notice to the Counterparty, sent before the
 Notice Deadline on the next succeeding Fund Business Day, cancel the Creation
 Notice, and where such a Withdrawal Notice is given no Commodity Contracts
 shall be Created in respect of or under that Creation Notice; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 if no notice is issued under paragraph 4(a)(i) then the Creation
 Notice will be deemed received by the Counterparty prior to the Notice
 Deadline on the next Fund Business Day (and no creation of Commodity
 Contracts for that Creation Notice shall occur before then) in priority to
 any Creation Notice deemed received by the Counterparty prior to the Notice
 Deadline on such Fund Business Day pursuant to paragraph 5 and 

 

61

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 that Fund
Business Day will then constitute Day 1 for the Creation Notice and this
paragraph 4 shall apply thereto accordingly;

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
 in the case of Index Commodity
Contracts, if Day 1 is a Pricing Day for one or more but not all Designated
Contracts by reference to the Settlement Price for which the Composite
Commodity Index relating to an Index Commodity Contract of class i relates is
calculated (in whole or in part) then (1) that Index Commodity Contract will
not be priced until the next General Trading Day on which each such Designated
Contract has had one or more Pricing Days; and (2) the Price of an Index
Commodity Contract of that class for a Creation Notice deemed received on Day 1
will be an amount (which may not be negative) calculated to 7 places of
decimals with 0.00000005 rounded upwards):

 

	
  

 	
  

 	
  

 
	
  

 	

	
  

 	
  

 	
  

 
	
  

 	
 where:

 
	
  

 	
  

 	
  

 
	
  

 	
 Pi, t

 	
 is the Price
 of an Index Commodity Contract of class i for day t;

 
	
  

 	
  

 	
  

 
	
  

 	
 IPi,t

 	
 is the
 Indicative Price (determined in accordance with Clause 5.5) of an Index
 Commodity Contract of class i for day t;

 
	
  

 	
  

 	
  

 
	
  

 	
 i

 	
 refers to
 the relevant class of Index Commodity Contract;

 
	
  

 	
  

 	
  

 
	
  

 	
 t

 	
 refers to
 the applicable calendar day (Day 1);

 
	
  

 	
  

 	
  

 
	
  

 	
 IPD

 	
 represents
 the ‘Index Pricing Day’, which is defined as the day upon which the relevant
 Index Commodity Contract is priced, being the General Trading Day on which
 each Designated Contract by reference to the Settlement Price for which the
 relevant Composite Commodity Index is calculated has had at least one Pricing
 Day from and including day t;

 
	
  

 	
  

 	
  

 
	
  

 	
 IPD-1

 	
 refers to
 the calendar day prior to IPD;

 
	
  

 	
  

 	
  

 
	
  

 	
 CAi, Γ+1

 	
 is the
 Capital Adjustment applicable to an Index Commodity Contract of class i for
 day Γ+1;

 
	
  

 	
  

 	
  

 
	
  

 	
 Γ

 	
 represents
 each calendar day from and including t until and including IPD-1;

 
	
  

 	
  

 	
  

 
	
  

 	
 τ

 	
 means each
 calendar day from and including t until and including CPDw-1;

 
	
  

 	
  

 	
  

 
	
  

 	
 ND

 	
 means the
 ‘Number of Disrupted commodities’, being defined as the number of commodities
 represented in the relevant Composite Commodity Index which are the subject
 of a Market Disruption Event on Day 1;

 
	
  

 	
  

 	
  

 
	
  

 	
 w

 	
 is a
 commodity in relation to the relevant Composite Commodity Index which is
 subject to a Market Disruption Event on Day 1;

 

62

	
  

 	
  

 	
  

 
	
  

 	
 CPDw

 	
 represents
 the ‘Commodity Pricing Day’ which is defined as the first calendar day
 following Day 1 which is a Pricing Day for commodity w;

 
	
  

 	
  

 	
  

 
	
  

 	
 CPDw-1

 	
 refers to the calendar day prior to CPDw;

 
	
  

 	
  

 	
  

 
	
  

 	
 j

 	
 in relation to a commodity w, is either a Lead Future or a Next
 Future and where j=1 it is a Lead Future and where j=2 it is a Next Future;

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 HP 

 	
 w 

 	
  

 	
 means the
 Theoretical Hedge Position (determined in accordance with
 Clause 5.7(ii)) for Designated Contract j of commodity w in respect of
 Index Commodity Contract i on day τ;

 
	
  

 	
 i,τ,j 

 	
  

 
	
  

 
	
  

 	
 WAV 

 	
 w 

 	
  

 	
 means the weighted value for Designated Contract j of commodity w on
 day τ+1 used for calculating the relevant Composite Commodity Index
 calculated in accordance with the Handbook, provided that where day τ+1
 is not a General Trading Day then it shall be equal to ;

 
	
  

 	
 τ+1,j

 	
  

 
	
  

 
	
  

 	
 WAV 

 	
 w 

 	
  

 	
 means the weighted value for Designated Contract j of commodity w on
 day τ used for calculating the relevant Composite Commodity Index
 calculated in accordance with the Handbook, provided that where day
 τ is not a General Trading Day then it shall be the weighted value for
 such Designated Contract on the General Trading Day preceding day τ;

 
	
  

 	
 τ,j 

 	
  

 
	
  

 
	
  

 	
 CIM 

 	
 w 

 	
  

 	
 means the Commodity Index Multiplier (as defined in the Handbook from
 time to time) on day τ for Designated Contract j of commodity w, provided
 that where day τ is not a General Trading Day then it shall
 be equal to the Commodity Index Multiplier for such Designated Contract on
 the first General Trading Day prior to day τ; and

 
	
  

 	
 τ,j 

 	
  

 
	
  

 
	
  

 	
 CIM 

 	
 w 

 	
  

 	
 means the Commodity Index Multiplier (as defined in the Handbook from
 time to time) on day τ+1 for Designated Contract j of commodity w, provided
 that where day τ+1 is not a General Trading Day then it shall be equal to . 

 
	
  

 	
 τ+1,j

 	
  

 

	
  

 	
  

 
	
 (c)

 	
 where paragraph 4(b) applies,
the Pricing Date in respect of the Creation Notice relating to the Index
Commodity Contracts concerned will be the Trading Day on which all Designated
Contracts by reference to the Settlement Price for which the Composite
Commodity Index relating to such Index Commodity Contracts is calculated have
had one or more Pricing Days since (but including) Day 1; 

 
	
  

 	
  

 
	
 (d)

 	
where
 paragraph 4(b) applies:

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 in relation to a Creation Notice, at
any time prior to a Pricing being completed in accordance with paragraph 4(b)
the Counterparty and the Relevant Authorized Participant may agree a Price and
applicable Pricing Date in lieu of that which would be determined in accordance
with paragraph 4(b) and notify that Price and applicable Pricing Date jointly
to the Fund in such form as the Fund may reasonably require. Such joint
notification shall be conclusive evidence that the Counterparty and the
Relevant Authorized Participant have agreed a Price and applicable Pricing Date

 

63

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 which shall apply in lieu of that which would be determined in accordance with
paragraph 4(b);

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 if a Price has not been determined in
accordance with paragraph 4(b) or 4(d)(i) by the end of the fourth General
Trading Day following Day 1 then, either the Fund or the Counterparty, by
notice to the other with a copy to the relevant Authorized Participant given in
the same manner as for a Pricing Notice, may elect that the Price should
instead be determined in the manner provided in the following sub-paragraphs.
Any such notice which is received by the Fund or the Counterparty on an Fund
Business Day after the Notice Deadline shall be deemed to be received by the
Fund or the Counterparty (as the case may be) at 8.00 a.m. on the following
Fund Business Day, unless the Fund or the Counterparty (as the case may be)
agrees to treat that Redemption Form as having been received by it prior to the
Notice Deadline in which case it shall be deemed to have been received by the
Fund or the Counterparty (as the case may be) prior to the Notice Deadline. The
giving of any notice pursuant to paragraph (ii) shall not prevent the
Counterparty and the Relevant Authorized Participant from agreeing a Price and
Pricing Date in accordance with paragraph 4(d)(i) in which case such Price
and applicable Pricing Date shall apply in lieu of that which would be
determined in accordance with the following sub-paragraphs; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 if a notice is given pursuant to
paragraph 4(d)(ii) the Calculation Agent will be required under the
Calculation Agency Agreement to calculate in good faith and in a commercially
reasonable manner a Price as at the close of business on the Fund Business Day
on which such notice was deemed given using the formula set out in
paragraph 4(b) and, for each relevant Designated Contract for which a Market
Disruption Event would (but for this paragraph (d)) have prevented the
determination of the Price hereunder, a fair market value for such Designated
Contract determined using the principles set out in the Calculation Agency
Agreement and to notify the same to the Fund, the Relevant Authorized
Participant and the Counterparty; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iv)

 	
 if by 6.30
p.m. on the Fund Business Day following notification by the Calculation Agent
to the Fund and the Relevant Authorized Participant of any determination made
by the Calculation Agent pursuant to paragraph 4(d)(iii) either the Fund
or the Relevant Authorized Participant notifies the Counterparty that it
requires the appointment of a leading dealer in commodity derivatives as
substitute calculation agent (a Substitute Calculation Agent) to determine the fair
market values for any Designated Contract for which a Market Disruption Event
would (but for this paragraph (d)) have prevented the determination of the
Price hereunder in accordance with this paragraph and the Price, then (unless
agreement is reached otherwise in accordance with paragraph 4(d)(i)) each
of the Fund, the Relevant Authorized Participant and the Counterparty shall, in
the absence of manifest error, be bound by a determination made by the
Substitute Calculation Agent of such fair market values and Price. Any
Substitute Calculation Agent shall be appointed jointly by the Counterparty and
the Relevant Authorized Participant or, at the request of either, by the Fund.
Any Substitute Calculation Agent, if it is an Authorized Participant, shall be
independent of the Creation concerned and shall itself have no similar
transactions with the Fund awaiting Pricing in accordance with provisions of
its Authorized Participant Agreement analogous to paragraph 4(b). the Fund
shall not be obliged to appoint any Substitute Calculation Agent hereunder
unless it is indemnified and/or secured to its reasonable satisfaction against
any Liabilities to which it may thereby render itself liable. In performing its
duties under this paragraph any Substitute Calculation Agent shall calculate
such fair market values and Price in good faith and in a commercially
reasonable manner and shall calculate such Price as at the close of business on
the Fund Business Day on which the notice under paragraph 4(d)(ii) above
was deemed given using the formula set out in paragraph 4(b) and, for each

 

64

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 relevant Designated Contract for which a Market Disruption Event
 would (but for this paragraph (d)) have prevented the determination of the
 Price hereunder, a fair market value for such Designated Contract using the
 principles set out in the Calculation Agency Agreement and the applicable
 reported settlement prices for all other relevant Designated Contracts. The
 Substitute Calculation Agent shall assume, without enquiry, that any
 determination by the original Calculation Agent as to whether a Market
 Disruption Event in relation to any Designated Contract has occurred is
 correct and shall be bound by any such determination. Accordingly, the role
 of the Substitute Calculation Agent shall be limited to the determination of
 the relevant fair market values and the Price consequent upon such
 determinations. The Substitute Calculation Agent shall have no liability or
 responsibility to the parties for any error or omission in making any
 determination in connection with this paragraph.

 
	
  

 	
  

 	
  

 
	
 Confirmation of
 Creation Notices

 
	
  

 	
  

 	
  

 
	
 5. the Fund’s Authorized Individual shall, no later than 30 (thirty)
 minutes after the Notice Deadline or, if later [but prior to 6.30 p.m], no
 later than 30 (thirty) minutes after any Creation Notice has been sent by or
 on behalf of the Fund, contact the Counterparty’s Authorized Individual by
 telephone to seek confirmation by the Counterparty of the acceptance by the
 Counterparty of such Creation Notice, and the Counterparty shall confirm its
 acceptance of such Creation Notice except where such Creation Notice is not
 valid under paragraph 2 above (other than by virtue of sub-paragraph 2(i)), provided
 that where sub-paragraph 2(e), (f), (g), (h), (k) or (l) applies
 the Counterparty may, but shall not be obliged to, confirm such Creation
 Notice; and if the Creation Notice was deemed received by the Counterparty
 after the Notice Deadline the Counterparty may, but shall not be obliged to,
 agree that such Creation Notice should be treated as though received prior to
 the Notice Deadline (and in any event, the Counterparty’s Authorized
 Individual shall inform the Fund’s Authorized Individual whether, and to what
 extent, the Counterparty has confirmed or rejected such Creation Notice).

 
	
  

 	
  

 	
  

 
	
 6. Where the Counterparty confirms its acceptance of a Creation
 Notice, that Creation Notice (to the extent accepted by the Counterparty)
 shall be a valid Creation Notice.

 
	
  

 	
  

 	
  

 
	
 7. If the Counterparty considers that a purported Creation Notice is
 invalid, it shall notify the Fund and the Relevant Authorized Participant of
 that fact as soon as reasonably possible and the reasons for such invalidity.

 
	
  

 	
  

 	
  

 
	
 Creation Amount

 
	
  

 	
  

 	
  

 
	
 8. The Creation Amount with respect to a Creation shall be the amount
 (in US Dollars) determined as equal to the sum of the Class Amounts in
 respect of the class of Commodity Contract thereby Created.

 
	
  

 	
  

 	
  

 
	
 9. Within one Business Day after the Pricing Date in respect of any
 Creation Notice, the Counterparty shall notify the Fund of the Creation
 Amount payable in respect of that Creation Notice, and notify the Relevant Authorized
 Participant of the Creation Amount payable in respect of its request for
 issuance of Shares, determined as provided in paragraph 8.

 
	
  

 	
  

 	
  

 
	
 Payment of Creation
 Amount

 
	
  

 	
  

 	
  

 
	
 10. The Fund shall by 12 noon [Clause 1.2)(i) defines all times as
 being EST] on the Payment Date in respect of a Creation pay (or procure the
 payment of) the Creation Amount in respect of that Creation to the
 Counterparty by crediting such amount to the Counterparty Account in full
 cleared and immediately available funds, save if and to the extent that the
 Counterparty or the Fund has given a Withdrawal Notice in respect of any such
 Creation in accordance with paragraphs 4 above or 11 below.

 

65

	
  

 	
  

 
	
 Non-Payment of Creation Amount

 
	
  

 	
  

 
	
 11. Subject
 to paragraph 13, the Counterparty may give a Withdrawal Notice in respect of
 the Creation of any Commodity Contracts at any time after 4.00 p.m. on the
 first Business Day following the Payment Date in respect of such Creation, by
 sending such notice to the Fund, if and to the extent that the Counterparty
 has not at such time received payment or deemed payment of the Creation
 Amount in the Counterparty Account in respect of such Creation Notice. The
 Counterparty shall send copies of such Withdrawal Notice to the Relevant
 Authorized Participant at the same time as it sends such notice to the Fund. 

 
	
  

 	
  

 
	
 12. Where a
 Withdrawal Notice is duly given in respect of any Creation Notice, then:

 
	
  

 	
  

 
	
 (a)

 	
 such
 Creation Notice shall be cancelled, and (without prejudice to any amounts
 payable under the Direct Agreement) the Parties shall have no further
 obligations to each other under or in respect of it;

 
	
  

 	
  

 
	
 (b)

 	
 no interest
 shall be payable to the Counterparty in respect of such Creation Amount under
 Clause 12.2; and

 
	
  

 	
  

 
	
 (c)

 	
 the number
 and class of Commodity Contracts Created pursuant to that Creation Notice
 shall be cancelled (without any payment obligation arising under this
 Agreement).

 
	
  

 	
  

 
	
 13. If all
 or any part of the Creation Amount in respect of a Creation Notice has been
 discharged by way of set-off pursuant to paragraph 11 of Schedule 7 below,
 then references in paragraphs 11 and 12 to:

 
	
  

 	
  

 
	
 (a)

 	
 the Creation
 Amount in respect of that Creation Notice shall be construed as references
 only to that part of the Creation Amount which has not been so discharged;
 and

 
	
  

 	
  

 
	
 (b)

 	
 to the
 Commodity Contracts Created pursuant to that Creation Notice shall be
 construed as references only to those Commodity Contracts in respect of which
 the Creation Amount has not been so discharged.

 
	
  

 	
  

 
	
 Creation Limits

 
	
  

 	
  

 
	
 14. The
 Creation Limits are as follows:

 
	
  

 	
  

 
	
 (a)

 	
 unless
 otherwise agreed by the Counterparty, no Commodity Contract may be Created on
 a Pricing Day pursuant to a Creation Notice if as a consequence of such
 Creation the Aggregate Outstanding Contracts Price on that day would exceed
 US$[               ]
 ([words] billion US Dollars); and

 
	
  

 	
  

 
	
 (b)

 	
 unless
 otherwise agreed by the Counterparty, Commodity Contracts of any particular
 class may not be Created on a Pricing Day pursuant to a Creation Notice to
 the extent that the aggregate Net Exposure to any Relevant Commodity relating
 to such class of all Commodity Contracts of any class which are Created on
 that day, expressed as a positive number, less (if the aggregate Net Exposure
 to any Relevant Commodity relating to such class of all Commodity Contracts
 of any class which are Created on that day would have been a positive number
 without the requirement in this paragraph for it to be expressed as a
 positive number) or plus (if the aggregate Net Exposure to any Relevant
 Commodity relating to such class of all Commodity Contracts of any class
 which are Created on that day would have been a negative number but for the
 requirement in this paragraph for it to be expressed as a positive number)
 the aggregate Net Exposure to any Relevant Commodity relating to such class
 of all Commodity Contracts of any class which are Cancelled on that day would
 exceed an amount equal to the Daily Commodity Limit for that Relevant
 Commodity.

 

66

	
  

 
	
 15. For the purposes of the Creation Limits, Creation Notices will be
 dealt with in order of their actual receipt by the Counterparty and, for the
 purpose of this paragraph, paragraph 3 above shall be disregarded.

 

67

Schedule 7

CANCELLATION OF COMMODITY CONTRACTS

Cancellation Notices

1. the Fund may on any Fund Business Day prior to the Notice Deadline
send (or cause to be sent on its behalf) to the Counterparty a notice in the
form attached as Schedule 5 (or such other form as may be agreed between the
Fund and the Counterparty from time to time) (a Cancellation Notice) which:

	
  

 	
  

 
	
 (a)

 	
 requests that the Counterparty Cancel the Equivalent Number of
 Commodity Contracts determined by reference to a number and class of Shares
 to be Redeemed by the Fund specified in such Cancellation Notice; and

 
	
  

 	
  

 
	
 (b)

 	
 identifies (by attachment or specification) (in the case of (i) and
 (ii) or (in the cases of (iii) and (iv)) includes or attaches:

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
  

 	
 a request submitted to the Fund by the Relevant Authorized
 Participant (or other person so entitled) for the Redemption of Shares to
 which the Cancellation Notice corresponds; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
  

 	
 where the Fund has received a request for the Redemption of Shares
 and one or more requests for the issue of Shares of the same class, such
 request and specifies the number of Commodity Contracts to be Cancelled
 pursuant to such requests; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
  

 	
 confirmation from the Fund that such Cancellation Notice is in
 respect of a compulsory Redemption of Shares specifying the number and class
 of Shares to which the compulsory Redemption relates; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (iv)

 	
  

 	
 where the Fund has received one or more requests for the Redemption
 of Shares pursuant to Condition 7.3, confirmation from the Fund that such Cancellation
 Notice is in respect of valid Redemption requests; and

 
	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
 specifies the Redemption Account into which the Cancellation Amount
 shall be payable.

 

2. A Cancellation Notice shall be invalid:

	
  

 	
  

 
	
 (a)

 	
 if it does not specify a number and the fund in respect of which such
 Shares are to be Redeemed;

 
	
  

 	
  

 
	
 (b)

 	
 if it does not identify in accordance with sub-paragraph 1(b)
 above the request(s) for the Redemption (or issue) of Shares submitted to the
 Fund referred to in paragraph 1(b)(i) or (ii) above or include or attach
 the confirmation from the Fund referred to in paragraph 1(b)(iii) or
 (iv) above;

 
	
  

 	
  

 
	
 (c)

 	
 if giving effect to the Cancellation Notice would involve the
 Cancellation of more Commodity Contracts of the relevant class or any
 relevant class than are in existence under this Agreement and not already the
 subject of a valid Cancellation Notice;

 
	
  

 	
  

 
	
 (d)

 	
 if it does not specify the Redemption Account into which the
 Cancellation Amount is to be paid;

 
	
  

 	
  

 
	
 (e)

 	
 if a Cancellation of Commodity Contracts pursuant to the Cancellation
 Notice would result in a Redemption Limit being exceeded, and the
 Counterparty does not agree to that Redemption Limit being exceeded (in which
 event such Cancellation Notice will not be capable of being invalidated under
 this sub-paragraph (f) in respect of the greatest number of Commodity

 

68

	
  

 	
  

 
	
  

 	
 Contracts of the relevant class or classes that would not result in
 any Redemption Limit being exceeded);

 
	
  

 	
  

 
	
 (f)

 	
 if it is not confirmed in accordance with paragraph 5 below; 

 
	
  

 	
  

 
	
 (g)

 	
 where notice of a Compulsory Pricing Date has been given under
 Clause 9, if the Cancellation Notice is received or deemed received on
 or after: (i) where notice has been given other than in accordance with
 Clauses 9.1(c) or 9.2(c), the Compulsory Pricing Date or (ii) where notice
 has been given in accordance with Clauses 9.1(c) or 9.2(c), the date on which
 notice of the Compulsory Pricing Date was given;

 
	
  

 	
  

 
	
 (h)

 	
 if it is received or deemed received on or after the Compulsory
 Pricing Date in respect of any class of Commodity Contracts, in respect of
 which notice has been given in accordance with Clause 15.4; or

 
	
  

 	
  

 
	
 (i)

 	
 if it is invalid pursuant to paragraph 15(a) or paragraph 16,

 

and, save as provided under sub-paragraph (e) above and
paragraph 5, no Commodity Contracts shall be Cancelled in respect of or
under that Cancellation Notice.

3. A Cancellation Notice which is received by the Counterparty on an
Fund Business Day after the Notice Deadline shall be deemed to be received by
the Counterparty at 8.00 a.m. on the following Fund Business Day, unless
the Counterparty agrees to treat that Cancellation Notice as having been
received prior to the Notice Deadline in which case it shall be deemed to have
been received by the Counterparty prior to the Notice Deadline. For the
purposes of these Cancellation Procedures a Cancellation Notice that relates to
the Cancellation of Commodity Contracts in respect of more than one class of
Commodity Share will be deemed to comprise a separate Cancellation Notice for
the Cancellation of Commodity Contracts in respect of each such class of
Commodity Share. 

4. If a Cancellation Notice in relation to a class of Commodity
Contracts is deemed received by the Counterparty prior to the Notice Deadline
on an Fund Business Day (Day 1): 

	
  

 	
  

 
	
 (a)

 	
 if Day 1 is not a Pricing Day for such Individual Commodity Contracts
 or, in the case of Index Commodity Contracts, if Day 1 is not a Pricing Day
 for each of the commodities by reference to the Settlement Prices for which
 the Commodity Index relating to the class of Index Commodity Contracts to
 which the Cancellation Notice relates is calculated (in whole or in part):

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
  

 	
 the Fund may by written notice to the Counterparty, sent before the
 Notice Deadline on the next succeeding Fund Business Day, cancel the
 Cancellation Notice, and where such a Withdrawal Notice is given no Commodity
 Contracts shall be Cancelled in respect of or under that Cancellation Notice;
 and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
  

 	
 if no notice is issued under paragraph 4(a)(i) then the Cancellation
 Notice will be deemed received by the Counterparty prior to the Notice
 Deadline on the next Fund Business Day (and no cancellation for Commodity
 Contracts for that Cancellation Notice shall occur before then) in priority
 to any Cancellation Notice deemed received by the Counterparty prior to the
 Notice Deadline on such Fund Business Day pursuant to paragraph 5 and
 that Fund Business Day will then constitute Day 1 for the Cancellation
 Notice and this paragraph 4 shall apply thereto accordingly;

 

	
  

 	
  

 
	
 (b)

 	
 in the case of Index Commodity Contracts, if Day 1 is a Pricing Day
 for one or more but not all Designated Contracts by reference to the
 Settlement Price for which the Composite Commodity Index relating to an Index
 Commodity Contract of class i relates is calculated (in whole or in part)
 then (1) that Index Commodity Contract will not be priced until the next
 General Trading Day on which each such Designated Contract has had one or
 more Pricing Days; and (2) the Price of an Index Commodity Contract of that
 class for a Cancellation 

 

69

	
  

 	
  

 
	
  

 	
 Notice deemed received on Day 1 will be an amount (which may not be
 negative) calculated to 7 places of decimals with 0.00000005 rounded
 upwards):

 

	
  

 	
  

 	
  

 
	
  

 	

 
	
  

 	
  

 	
  

 
	
  

 	
 where:

 
	
  

 	
  

 	
  

 
	
  

 	
 Pi,t

 	
 is the Price of an Index Commodity Contract of class i for day t;

 
	
  

 	
  

 	
  

 
	
  

 	
 IPi,t

 	
 is the Indicative Price (determined in accordance with
 Clause 5.5) of an Index Commodity Contract of class i for day t;

 
	
  

 	
  

 	
  

 
	
  

 	
 i

 	
 refers to the relevant class of Index Commodity Contract;

 
	
  

 	
  

 	
  

 
	
  

 	
 t

 	
 refers to the applicable calendar day (Day 1);

 
	
  

 	
  

 	
  

 
	
  

 	
 IPD

 	
 represents the ‘Index Pricing Day’, which is defined as the day upon
 which the relevant Index Commodity Contract is priced, being the General
 Trading Day on which each Designated Contract by reference to the Settlement
 Price for which the relevant Composite Commodity Index is calculated has had
 at least one Pricing Day from and including day t;

 
	
  

 	
  

 	
  

 
	
  

 	
 IPD-1

 	
 refers to the calendar day prior to IPD;

 
	
  

 	
  

 	
  

 
	
  

 	
 CAi, Γ+1

 	
 is the Capital Adjustment applicable to an Index Commodity Contract
 of class i for day Γ+1;

 
	
  

 	
  

 	
  

 
	
  

 	
 Γ

 	
 represents each calendar day from and including t until and including
 IPD-1;

 
	
  

 	
  

 	
  

 
	
  

 	
 τ

 	
 means each calendar day from and including t until and including CPDw-1;
 

 
	
  

 	
  

 	
  

 
	
  

 	
 ND

 	
 means the ‘Number of Disrupted commodities’, being defined as the
 number of commodities represented in the relevant Composite Commodity Index
 which are the subject of a Market Disruption Event on Day 1;

 
	
  

 	
  

 	
  

 
	
  

 	
 w

 	
 is a commodity in relation to the relevant Composite Commodity Index
 which is subject to a Market Disruption Event on Day 1;

 
	
  

 	
  

 	
  

 
	
  

 	
 CPDw

 	
 represents the ‘Commodity Pricing Day’ which is defined as the first
 calendar day following Day 1 which is a Pricing Day for commodity w;

 
	
  

 	
  

 	
  

 
	
  

 	
 CPDw-1

 	
 refers to the calendar day preceding CPDw

 
	
  

 	
  

 	
  

 
	
  

 	
 j

 	
 in relation to a commodity w, is either a Lead Future or a Next
 Future and where j=1 it is a Lead Future and where j=2 it is a Next Future;

 

70

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 HP

 	
 w

 	
 means the Theoretical Hedge Position (determined in accordance with
 Clause 5.7(ii)) for Designated Contract j of commodity w in respect of
 Index Commodity Contract i on day τ;

 
	
  

 	
 i,τ,j

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 WAV

 	
 w

 	
 means the weighted value for Designated Contract j of commodity w on
 day τ+1 used for calculating the relevant Composite Commodity Index
 calculated in accordance with the Handbook, provided that where day τ+1 is not a General Trading Day then it shall be equal to; 

	
  

 	
 τ+l,j 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 WAV

 	
 w

 	
 means the weighted value for Designated Contract j of commodity w on
 day τ used for calculating the relevant Composite Commodity Index
 calculated in accordance with the Handbook, provided that where day
 τ is not a General Trading Day then it shall be the weighted value for
 such Designated Contract on the General Trading Day preceding day τ ;

 
	
  

 	
 τ,j

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CIM

 	
 w

 	
 means the Commodity Index Multiplier (as defined in the Handbook from
 time to time) on day τ for Designated Contract j of commodity w, provided
 that where day τ is not a General Trading Day then it shall
 be equal to the Commodity Index Multiplier for such Designated Contract on
 the first General Trading Day prior to day τ; and

 
	
  

 	
 τ,j

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CIM

 	
 w

 	
 means the Commodity Index Multiplier (as defined in the Handbook from
 time to time) on day τ+1 for Designated Contract j of commodity w, provided
 that where day τ+1 is not a General Trading Day then it shall be equal to .

	
  

 	
 τ+l,j

 

	
  

 	
  

 	
  

 	
  

 
	
 (c)

 	
 where paragraph 4(b) applies, the Pricing Date in respect of the
 Cancellation Notice relating to the Index Commodity Contracts concerned will
 be the Trading Day on which all Designated Contracts by reference to the
 Settlement Price for which the Composite Commodity Index relating to such
 Index Commodity Contracts is calculated have had one or more Pricing Days
 since (but including) Day 1; 

 
	
  

 	
  

 	
  

 	
  

 
	
 (d)

 	
 where paragraph 4(b) applies:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
  

 	
 in relation to a Cancellation Notice, at any time prior to a Pricing
 being completed in accordance with paragraph 4(b) the Counterparty and
 the Relevant Authorized Participant may agree a Price and applicable Pricing
 Date in lieu of that which would be determined in accordance with
 paragraph 4(b) and notify that Price and applicable Pricing Date jointly
 to the Fund in such form as the Fund may reasonably require. Such joint
 notification shall be conclusive evidence that the Counterparty and the
 Relevant Authorized Participant have agreed a Price and applicable Pricing
 Date which shall apply in lieu of that which would be determined in
 accordance with paragraph 4(b); 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
  

 	
 if a Price has not been determined in accordance with
 paragraph 4(b) or 4(d)(i) by the end of the fourth General Trading Day
 following Day 1 then, either the Fund or the Counterparty, by notice to the
 other with a copy to the relevant Authorized Participant given in the same
 manner as for a Pricing Notice, may elect that the Price should instead be
 determined in the manner provided in the following sub-paragraphs. Any such
 notice which is received by the Fund or the Counterparty on an Fund Business
 Day after the Notice Deadline shall be deemed to be received by 

 

71

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 the Fund or the Counterparty (as the case may be) at 8.00 a.m. on the
 following Fund Business Day, unless the Fund or the Counterparty (as the case
 may be) agrees to treat that Redemption Form as having been received by it
 prior to the Notice Deadline in which case it shall be deemed to have been
 received by the Fund or the Counterparty (as the case may be) prior to the
 Notice Deadline. The giving of any notice pursuant to paragraph (ii)
 shall not prevent the Counterparty and the Relevant Authorized Participant
 from agreeing a Price and Pricing Date in accordance with
 paragraph 4(d)(i) in which case such Price and applicable Pricing Date
 shall apply in lieu of that which would be determined in accordance with the
 following sub-paragraphs;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
  

 	
 if a notice is given pursuant to paragraph 4(d)(ii) the
 Calculation Agent would be required under the Calculation Agency Agreement to
 calculate in good faith and in a commercially reasonable manner a Price as at
 the close of business on the Fund Business Day on which such notice was
 deemed given using the formula set out in paragraph 4(b) and, for each
 relevant Designated Contract for which a Market Disruption Event would (but
 for this paragraph (d)) have prevented the determination of the Price
 hereunder, a fair market value for such Designated Contract determined using
 the principles set out in the Calculation Agency Agreement and shall notify
 the same to the Fund, the Relevant Authorized Participant and the
 Counterparty; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (iv)

 	
  

 	
 if by [6.30 p.m.] on the Fund Business Day following
 notification by the Calculation Agent to the Fund and the Relevant Authorized
 Participant of any determination made by the Calculation Agent pursuant to
 paragraph 4(d)(iii) either the Fund or the Relevant Authorized
 Participant notifies the Counterparty that it requires the appointment of a
 leading dealer in commodity derivatives as substitute calculation agent (a Substitute Calculation Agent)
 to determine the fair market values for any Designated Contract for which a
 Market Disruption Event would (but for this paragraph (d)) have
 prevented the determination of the Price hereunder in accordance with this
 paragraph and the Price, then (unless agreement is reached otherwise in
 accordance with paragraph 4(d)(i)) each of the Fund, the Relevant
 Authorized Participant and the Counterparty shall, in the absence of manifest
 error, be bound by a determination made by the Substitute Calculation Agent
 of such fair market values and Price. Any Substitute Calculation Agent shall
 be appointed jointly by the Counterparty and the Relevant Authorized
 Participant or, at the request of either, by the Fund. Any Substitute
 Calculation Agent, if it is an Authorized Participant, shall be independent
 of the Creation concerned and shall itself have no similar transactions with
 the Fund awaiting Pricing in accordance with provisions of its Authorized
 Participant Agreement analogous to paragraph 4(b). the Fund shall not be
 obliged to appoint any Substitute Calculation Agent hereunder unless it is
 indemnified and/or secured to its reasonable satisfaction against any
 Liabilities to which it may thereby render itself liable. In performing its
 duties under this paragraph any Substitute Calculation Agent shall calculate
 such fair market values and Price in good faith and in a commercially
 reasonable manner and shall calculate such Price as at the close of business
 on the Fund Business Day on which the notice under paragraph 4(d)(ii)
 above was deemed given using the formula set out in paragraph 4(b) and,
 for each relevant Designated Contract for which a Market Disruption Event
 would (but for this paragraph (d)) have prevented the determination of
 the Price hereunder, a fair market value for such Designated Contract using
 the principles set out in the Calculation Agency Agreement and the applicable
 reported settlement prices for all other relevant Designated Contracts. The
 Substitute Calculation Agent shall assume, without enquiry, that any
 determination by the original Calculation Agent as to whether a Market
 Disruption Event in relation to any Designated Contract has occurred is
 correct and shall be bound by any such determination. Accordingly, the role
 of the Substitute Calculation Agent shall be limited to the determination of
 the relevant fair market values and the Price consequent upon such
 determinations. The Substitute 

 

72

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Calculation
 Agent shall have no liability or responsibility to the parties for any error
 or omission in making any determination in connection with this paragraph.

 

Confirmation of
Cancellation Notices

5. the Fund’s Authorized Individual shall, no later than 30 (thirty)
minutes after the Notice Deadline or, if later [but prior to 6.30 p.m], no
later than 30 (thirty) minutes after any Cancellation Notice has been sent by
or on behalf of the Fund, contact the Counterparty’s Authorized Individual by
telephone to seek confirmation by the Counterparty of the acceptance by the
Counterparty of such Cancellation Notice, and the Counterparty shall confirm
its acceptance of such Cancellation Notice except where such Cancellation
Notice is not valid under paragraph 2 above (other than by virtue of
sub-paragraph 2(g)), provided that where
sub-paragraph 2(f) applies the Counterparty may, but shall not be obliged
to, confirm such Cancellation Notice; and if the Cancellation Notice was deemed
received by the Counterparty after the Notice Deadline the Counterparty may,
but shall not be obliged to, agree that such Cancellation Notice should be
treated as though received prior to the Notice Deadline (and in any event, the
Counterparty’s Authorized Individual shall inform the Fund’s Authorized
Individual whether, and to what extent, the Counterparty has confirmed or
rejected such Cancellation Notice).

6. Where the Counterparty confirms its acceptance of a Cancellation
Notice, that Cancellation Notice (to the extent accepted by the Counterparty)
shall be a valid Cancellation Notice.

7. If the Counterparty considers that a purported Cancellation Notice
is invalid, it shall notify the Fund and the Relevant Authorized Participant or
the Trustee (where applicable) of that fact as soon as reasonably possible and
the reasons for such invalidity.

Cancellation Amount

8. The Cancellation Amount with respect to a Cancellation shall be the
amount (in US Dollars) determined as equal to the sum of the Class Amounts in
respect of the class of Commodity Contract thereby Cancelled.

9. Within one Business Day after the Pricing Date in respect of any
Cancellation Notice, the Counterparty shall notify the Fund of the Cancellation
Amount payable in respect of that Cancellation Notice, and notify the Relevant
Authorized Participant of the Cancellation Amount payable in respect of its
request for the Redemption of Shares, determined as provided in
paragraph 8.

Payment of
Cancellation Amount

10. Subject to paragraph 11 below and in the case of a
Cancellation pursuant to a Cancellation Notice or an Agreed Cancellation
Notice, the Counterparty shall by 6:00p.m. on the Payment Date in respect of
any Cancellation pay (or procure the payment of) the Cancellation Amount in
respect of that Cancellation into the applicable Redemption Account.

Set-off

11. If at any time a Cancellation Amount is due to be paid by the
Counterparty in respect of a Cancellation corresponding with a Redemption of
Shares by a particular Authorized Participant and that Authorized Participant
has failed to pay a Creation Amount on its due date and such Creation Amount or
part thereof remains outstanding, then the Counterparty may elect, by giving
written notice thereof to the Fund and the Relevant Authorized Participant on
or before the Payment Date for that Cancellation, to effect a set-off of those
amounts in accordance with this paragraph 11, and upon the Counterparty
giving notices accordingly the following provisions shall apply:

(a) if the relevant Cancellation Amount is greater than the relevant
outstanding Creation Amount, the Counterparty shall apply sufficient of the
relevant Cancellation Amount to meet the relevant outstanding Creation Amount
in full, whereupon (i) the relevant outstanding Creation Amount shall

73

be deemed paid in full; (ii) the Counterparty’s obligation to pay to
the Fund that portion of the relevant Cancellation Amount so applied shall be
deemed satisfied in full; and (iii) the Counterparty shall pay to the Fund the
balance of the relevant Cancellation Amount in accordance with
paragraph 10 above; 

(b) if the relevant Cancellation Amount is less than the relevant
outstanding Creation Amount, the Counterparty shall apply all of the relevant
Cancellation Amount to meet the relevant outstanding Creation Amount in part,
whereupon (i) the relevant Creation Amount shall be deemed paid in such part;
(ii) the Counterparty’s obligation to pay to the Fund the relevant Cancellation
Amount so applied shall be deemed satisfied in full; and (iii) the Counterparty
shall not be entitled give a Withdrawal Notice in respect of the Creation of
Commodity Contracts corresponding to that part of the Creation Amount which has
been so set off; and 

(c) the Fund shall procure that the Relevant Authorized Participant and
the Registrar will effect deliveries and payments such that:

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 where
 paragraph 11(a) applies:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (A)

 	
 the issue of Shares relating to the Creation Amount which is set off
 in whole under paragraph 11(a)(i) is settled on a delivery free of
 payment basis, and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (B)

 	
 the Redemption of Shares relating to the Cancellation Amount is
 settled on a delivery versus payment basis (the amount of the payment being
 the amount of the balance of Cancellation Amount payable by the Counterparty
 under paragraph 11(a)(iii)); and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 where paragraph 11(b) applies:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (A)

 	
 the issue of the greatest number of Shares relating to the Creation
 Amount the aggregate subscription price for which does not exceed the balance
 of the Creation Amount that has been set off is settled on a delivery versus
 payment basis (the amount of the payment being the amount of the balance of
 Creation Amount payable to the Counterparty) and any difference between such
 aggregate subscription price and such balance so set off is paid by the
 Counterparty into the Redemption Account, and

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (B)

 	
 the Redemption of Shares relating to the Cancellation Amount which is
 set off in whole under paragraph 11(b)(ii) is settled on a delivery free
 of payment basis.

 

Redemption Limit

12. The Redemption Limit is as follows: Unless otherwise agreed by the
Counterparty, Commodity Contracts of any particular class may not be Cancelled
on a Pricing Day pursuant to a Cancellation Notice to the extent that the
aggregate Net Exposure to any Relevant Commodity relating to such class of all
Commodity Contracts of any class which are Cancelled on that day, expressed as
a positive number, less (if the aggregate Net Exposure to any Relevant
Commodity relating to such class of all Commodity Contracts of any class which
are Cancelled on that day would have been a positive number without the
requirement in this paragraph for it to be expressed as a positive number) or
plus (if the aggregate Net Exposure to any Relevant Commodity relating to such
class of all Commodity Contracts of any class which are Cancelled on that day
would have been a negative number but for the requirement in this paragraph for
it to be expressed as a positive number) the aggregate Net Exposure to any
Relevant Commodity relating to such class of all Commodity Contracts of any
class which are Created on that day would exceed an amount equal to the Daily
Commodity Limit for that Relevant Commodity.

74

13. For the purposes of the Redemption Limit, Cancellation Notices will
be dealt with in order of their actual receipt by the Counterparty and, for the
purpose of this paragraph, paragraph 3 above shall be disregarded.

Compulsory
Cancellations

14. Where a Compulsory Pricing Date is notified in accordance with this
Agreement, in respect thereof: 

	
  

 	
  

 
	
 (a)

 	
 the Counterparty shall, no later than [11.00 p.m.] on the Business
 Day immediately preceding the Compulsory Pricing Date notify the Fund of the
 Compulsory Daily Pricing Number of Commodity Contracts of each relevant class
 to be priced commencing on the Compulsory Pricing Date;

 
	
  

 	
  

 
	
 (b)

 	
 on the Compulsory Pricing Date and on any required successive Pricing
 Day for each relevant class, the applicable Compulsory Number Priced of
 Commodity Contracts of a class shall be priced until Commodity Contracts of
 that class (including, in the case of a Compulsory Pricing Date notified in
 accordance with Clause 16.3, all those Commodity Contracts which have
 previously been deducted from the Compulsory Daily Pricing Number for that
 class pursuant to the proviso contained in the definition of “Compulsory
 Number Priced” in connection with that Compulsory Pricing Date) in a number
 equal to the Compulsory Cancellation Number for that class have been Priced;

 
	
  

 	
  

 
	
 (c)

 	
 on the Payment Date for such Compulsory Cancellation the Counterparty
 shall pay into such Redemption Account(s) and in such proportions as the Fund
 shall notify to the Counterparty in writing (and to the extent not so
 notified by [4.00 p.m.] on the day prior to such Payment Date, into the
 Redemption Account of the Trustee) the sum of the Prices of all Commodity
 Contracts thereby priced together with an amount equivalent to interest
 thereon calculated at the rate of the Capital Adjustment then prevailing, in each
 case from the third New York Business Day following the Pricing Day on which
 that Price was determined until and including the Cancellation Payment Date;
 and

 
	
  

 	
  

 
	
 (d)

 	
 upon payment in full of that amount all such Commodity Contracts
 which were so priced shall be terminated.

 

 [Suspension of
Redemptions]

15. Where the
Sponsor has pursuant to the Trust Agreement suspended the right to Redeem
Shares of any Fund:

	
  

 	
  

 
	
 (a)

 	
 such suspension shall not affect any Cancellation of Commodity
 Contracts of the corresponding class the Pricing Date for which had passed
 before the suspension commenced, but any Cancellation Notice lodged or deemed
 received on an Fund Business Day when the right to Redeem Shares of that Fund
 is suspended shall be invalid; and

 
	
  

 	
  

 
	
 (b)

 	
 if the right to Redeem Shares of that Fund is suspended pursuant to
 the Trust Agreementas at 6.30 p.m. on the second Fund Business Day prior
 to a Compulsory Pricing Date for that class notified pursuant to
 Clause 16.3, then notwithstanding that a number of Commodity Contracts
 of that class may have been notified pursuant to Clause 16.3, which is
 not all of those Commodity Contracts, such Compulsory Pricing Date shall be a
 Compulsory Pricing Date in respect of all of the Commodity Contracts of that
 class.

 

16. Where the
Sponsor has pursuant to the Trust Agreement suspended the right to Redeem
Shares of any Fund, such suspension shall not affect any Cancellation of
Commodity Contracts of the corresponding class pursuant to a Cancellation
Notice lodged and (where applicable) deemed received prior to the commencement
of such suspension, but any Cancellation Notice lodged or deemed received when
such suspension is in place shall be invalid provided that the Fund has
given

75

the
Counterparty written notice of the suspension on or prior to such day and no
notice has been given to the Counterparty that such suspension has been
terminated.

76

Schedule
8

Form of Withdrawal Notice

Withdrawal
Notice –

This Withdrawal Notice is given in accordance with the Facility
Agreement (the Facility Agreement)
between [Counterparty] and the Fund dated [                    ]
2011 in relation to the withdrawal of a Creation Notice or a Cancellation
Notice. Terms used in this Withdrawal Notice have the meanings given to them in
the Facility Agreement. Nothing in
this notice shall be taken as varying any provision of, or constituting a
waiver by either party of any of its rights under, the Facility Agreement. In
the event of any inconsistency between the provisions of the Facility Agreement
and this notice, the Facility Agreement shall prevail.

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Insert here which one of Options A, B or C below applies:
 Option _____

 
	
  

 
	
 This is a Withdrawal Notice for the
 purposes of the Facility Agreement and is given by:

 
	
  

 
	
 Option A:
 the Fund pursuant to
 paragraph 4(a)(i) of Schedule 6 of the Facility Agreement in respect of
 the Creation Notice details of which are set out below.

 
	
  

 
	
 Option B:
 [Counterparty] pursuant
 to paragraph 11 of Schedule 6 of the Facility Agreement in respect of
 the Creation Notice details of which are set out below.

 
	
  

 
	
 Option C:
 the Fund pursuant to
 paragraph 4(a)(i) of Schedule 7 of the Facility Agreement in respect of
 the Cancellation Notice details of which are set out below.

 
	
  

 
	
  

 
	
 Details
 of Creation Notice/Cancellation Notice:

 
	
  

 
	
 This Withdrawal Notice relates to the
 Creation Notice/ Cancellation Notice* the details of which are set out below:

 
	
 *delete
 as applicable – select “ Creation Notice” for Option A, “ Creation Notice”
 for Option B and “ Cancellation Notice” for Option C

 
	
  

 	
  

 	
  

 
	
 Date: _______________________ Time+:
 _______________________                    Reference+:

 _______________________

 
	
  (dd/mm/yy)                                  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Class of
 Share:       _____________

 	
  

 	
  

 
	
 ____________________________________________________________________________

 	
  

 
	
 [Code]

 	
  

 	
 Share Name

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 Number of Shares:____________________

 	
  

 	
  

 
	
 _______________________________________________________________________

 	
  

 
	
  

 	
 Number

 	
 Words

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 + Optional

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 
	
 Details
 of Withdrawal Notice:

 
	
  

 	
  

 	
  

 	
  

 
	
 Date: _______________________ Time (optional):
 _______________________                    Reference

 (optional): _______________________

 
	
  (dd/mm/yy)                                  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 Signed by [Counterparty] or
 the Fund: _____________________________________________

 
	
 delete as
 applicable

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Print Name:

 	
 __________________________________________________

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 Confirmation
 of Receipt of Withdrawal Notice

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 We hereby acknowledge receipt of the above Withdrawal Notice.

 
	
  

 	
  

 	
  

 	
  

 
	
 Signed by [Counterparty] or
 the Fund: _____________________________________________

 	
  

 
	
 delete as
 applicable

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 Print Name:

 	
 _____________________________________________

 	
  

 
	
  

 	
  

 	
  

 	
  

 

77

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