Document:

EX-4.3 FORM OF PARTICIPATION AGREEMENT

 

EXHIBIT 4.3

FORM OF

                     FUND

AUTHORIZED PURCHASER AGREEMENT

     This                      Fund, Authorized Purchaser Agreement (the “Agreement”), dated as of                     ,
is entered into by and between                     , a Delaware limited liability
company and                      (the “General Partner”), on behalf of itself and as General Partner
of                      Fund, and                     , a [state] [type of business organization] (the
“Authorized Purchaser”).

SUMMARY

     The General Partner serves in its capacity as General Partner of                      Fund, (the
“Fund”) pursuant to the Limited Partnership Agreement dated as of the day the first Creation Basket
is sold and the proceeds are invested (substantially in the form attached hereto) between the
General Partner and the Limited Partners of the Fund (the “Partnership Agreement”). As provided in
the Partnership Agreement and described in the Fund’s prospectus (the “Prospectus”), units of
fractional undivided beneficial interest in and ownership of the limited partnership (the “Units”)
may be created or redeemed through the Marketing Agent by the Authorized Purchaser in aggregations
of                      Units (each aggregation, a “Creation Basket” or “Redemption Basket,”
respectively; collectively, “Baskets”). Creation Baskets are offered only pursuant to the
registration statement of the Fund on Form S-1, as amended (Registration No.:                     ), as
declared effective by the Securities and Exchange Commission (the “SEC”) and as the same may be
amended from time to time thereafter (collectively, the “Registration Statement”). Authorized
Purchasers are the only persons that may place orders to create and redeem Creation Baskets or
Redemption Baskets.

     Capitalized terms used but not defined in this Agreement shall have the meanings assigned to
such terms in the Prospectus. To the extent there is a conflict between any provision of this
Agreement and the provisions of the Prospectus, the provisions of the Prospectus shall control.

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

Section 1. Order Placement.

     To place orders for the creation or redemption of one or more Baskets, Authorized Purchasers
must follow the procedures for creation and redemption referred to in Section 3 of this Agreement
and attached to this Agreement as Exhibit A; provided, however, that in the case of an Authorized
Purchaser’s initial order to purchase one or more Creation Baskets on the first day the Baskets are
to be offered and sold, the procedures for creation will be as attached to this Agreement as
Exhibit A-1.

Section 2. Status and Obligations of Authorized Purchaser.

     The Authorized Purchaser represents and warrants and covenants the following:

 

 

     (a) The Authorized Purchaser is a participant of the Depository Trust Company (“DTC”) (as such
a participant, a “DTC Participant”). If the Authorized Purchaser ceases to be a DTC Participant,
the Authorized Purchaser shall give immediate notice to the General Partner of such event, and this
Agreement shall terminate immediately as of the date the Authorized Purchaser ceased to be a DTC
Participant.

     (b) Unless Section 2(c) applies, the Authorized Purchaser either (i) is registered as a
broker-dealer under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is a
member in good standing of the National Association of Securities Dealers, Inc. (the “NASD”), or
(ii) is exempt from being, or otherwise is not required to be, licensed as a broker-dealer or a
member of the NASD, and in either case is qualified to act as a broker or dealer in the states or
other jurisdictions where the nature of its business so requires. The Authorized Purchaser will
maintain any such registrations, qualifications and membership in good standing and in full force
and effect throughout the term of this Agreement. The Authorized Purchaser will comply with all
applicable federal law, the laws of the states or other jurisdictions concerned, and the rules and
regulations promulgated thereunder, including, but not limited to those applicable to securities
and commodities transactions, and with the Constitution, By-Laws and Conduct Rules of the NASD (if
it is a NASD member), and is solely responsible for determining the application of any such laws or
regulations in all cases at its own expense. The Authorized Purchaser will not directly or
indirectly offer, sell or deliver Baskets in or from any state or jurisdiction where they may not
lawfully be offered, sold and/or delivered.

     (c) If the Authorized Purchaser is offering or selling Units in jurisdictions outside the
several states, territories and possessions of the United States and is not otherwise required to
be registered, qualified or a member of the NASD as set forth in Section 2(b) above, the Authorized
Purchaser will (i) observe the applicable laws of the jurisdiction in which such offer and/or sale
is made, (ii) comply with the full disclosure requirements of the Securities Act of 1933, as
amended (the “1933 Act”) and the Commodities Exchange Act (the “CEA”), and the rules and
regulations promulgated thereunder, and (iii) conduct its business in accordance with the spirit of
the NASD Conduct Rules.

     (d) The Authorized Purchaser is in compliance with the money laundering and related provisions
of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001 (the “PATRIOT Act”), and the regulations promulgated thereunder, if
the Authorized Purchaser is subject to the requirements of the PATRIOT ACT.

     (e) The Authorized Purchaser has the capability to send and receive communications via an
authenticated telecommunication facility to and from the General Partner, ALPS Distributors, Inc.
(the “Marketing Agent”) and Brown Brothers Harriman & Co., who shall act as both administrator (the
“Administrator”) and custodian (the “Custodian”) for the Fund. The Authorized Purchaser shall
confirm such capability to the satisfaction of the General Partner and the Marketing Agent by the
end of the Business Day (as defined below) before placing its first order with the Marketing Agent
(whether such order is to create or to redeem Baskets). If required by the Marketing Agent, the
Administrator or the Custodian with respect to authorized telecommunications by telephonic
facsimile, the Authorized Purchaser shall enter into a separate

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agreement with the Marketing Agent, the Administrator or the Custodian, as the case may be,
indemnifying such party with respect to its communications by telephonic facsimile.

     (f) Because new Baskets can be created and Units therein issued on an ongoing basis, at any
point during the life of the partnership, a “distribution,” as such term is used in the 1933 Act,
may be occurring with respect to resales of these Units. The Authorized Purchaser is cautioned
that some of its activities may result in its being deemed a participant in a distribution in a
manner which would render it a statutory underwriter and subject it to the prospectus-delivery and
liability provisions of the 1933 Act. The Authorized Purchaser should review the “What is the Plan
of Distribution?” portion of the Prospectus and consult with its own counsel in connection with
entering into this Agreement and placing an Order (as defined below). In addition to satisfying
the prospectus delivery and disclosure requirements of the 1933 Act, the Authorized Purchaser and
any other participant in the distribution of the Units purchased by the Authorized Purchaser also
has the obligation to comply with the disclosure delivery requirements under the CEA, including,
with respect to the CEA, the requirement that it provide an acknowledgement of receipt of the
Prospectus (the “CEA Acknowledgement”) as set forth in Section 11, to the Fund, directly or through
its agent, the Marketing Agent, prior to payment of the purchase price for any Creation Basket to
the Fund. To the extent the Authorized Purchaser has distributed a Preliminary Prospectus to
prospective investors, if there are material changes made to that document as compared to the final
Prospectus, the Authorized Purchaser shall give notice to any prospective investor who received the
Preliminary Prospectus of such material change prior to a sale.

Section 3. Orders.

     (a) All orders to create or redeem Baskets shall be made in accordance with the terms of the
Prospectus, this Agreement and the creation and redemption procedures attached hereto as Exhibit A
(the “Procedures”), except in the case of an Authorized Purchaser’s initial order to purchase one
or more Creation Baskets on the first day the Baskets are to be offered and sold which will be
governed by the procedures set fro in Exhibit A-1. Each party will comply with such foregoing
terms to the extent applicable to it. The General Partner may issue additional or other procedures
from time to time relating to the manner of creating or redeeming Baskets and the Authorized
Purchaser will comply with such procedures. The Authorized Purchaser hereby consents to the use of
recorded telephone lines.

     (b) The Authorized Purchaser acknowledges and agrees it is acting solely as principal and not
on behalf of any party for which it is acting (whether such party is a customer or otherwise) that
each order to create a Basket (a “Purchase Order”) and each order to redeem a Basket (a “Redemption
Order”, and each Purchase Order and Redemption Order, an “Order”) may not be withdrawn by the
Authorized Purchaser. A form of Purchase/Redemption Order is attached hereto as Exhibit B.

     (c) The General Partner acting by itself or through the Marketing Agent shall have the
absolute right, but shall have no obligation, to reject any Purchase Order or Creation Basket
Deposit (i) determined by the General Partner not to be in proper form; (ii) that the General
Partner has determined would have adverse tax consequences to the Fund; (iii) the acceptance or
receipt of which would, in the opinion of counsel to the General Partner, be unlawful; or (iv) if
circumstances outside the control of the General Partner, the Marketing Agent or the Custodian make
it for all

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practical purposes not feasible to process creations of Creation Baskets. None of the General
Partner, the Marketing Agent or the Custodian shall be liable to any person by reason of the
rejection of any Purchase Order or Creation Basket Deposit (as defined in Section 6).

     (d) The General Partner acting by itself or through the Marketing Agent may, in its sole
discretion, reject any Redemption Order (i) determined by the General Partner not to be in proper
form or (ii) the fulfillment of which its counsel advises may be illegal under applicable laws and
regulations, and neither the General Partner nor the Marketing Agent shall have liability to any
person for rejecting a Redemption Order in such circumstances.

Section 4. Fees.

     In connection with each Order by an Authorized Purchaser to create or redeem one or more
Baskets, the General Partner shall charge, and the Authorized Purchaser shall pay to the General
Partner, the Transaction Fee prescribed in the Prospectus applicable to such creation or
redemption. The initial Transaction Fee shall be one thousand dollars ($1,000). The Transaction
Fee may be adjusted from time to time as set forth in the Prospectus.

Section 5. Authorized Persons.

     Concurrently with the execution of this Agreement and from time to time thereafter, the
Authorized Purchaser shall deliver to the General Partner and the Marketing Agent, notarized and
duly certified as appropriate by its secretary or other duly authorized official, a certificate in
the form of Exhibit C setting forth the names and signatures of all persons authorized to give
instructions relating to activity contemplated hereby or by any other notice, request or
instruction given on behalf of the Authorized Purchaser (each, an “Authorized Person”). The
General Partner or the Marketing Agent may accept and rely upon such certificate as conclusive
evidence of the facts set forth therein and shall consider such certificate to be in full force and
effect until the General Partner receives a superseding certificate bearing a subsequent date.
Upon the termination or revocation of authority of any Authorized Person by the Authorized
Purchaser, the Authorized Purchaser shall give immediate written notice of such fact to the General
Partner and the Marketing Agent, and such notice shall be effective upon receipt by the General
Partner.

Section 6. Creation Procedures.

     On any Business Day, an Authorized Purchaser may place an order with the Marketing Agent to
create one or more Creation Baskets in accordance with this Section 6 and the Procedures. For
purposes of processing purchase and redemption orders, a “Business Day” means any day other than a
day when any of the American Stock Exchange, the New York Mercantile Exchange or the New York Stock
Exchange is closed for regular trading. Purchase orders must be placed by 12:00 PM New York time
or the close of regular trading on the American Stock Exchange, whichever is earlier, except in the
case of an Authorized Purchaser’s initial order to purchase one or more Creation Baskets on the
first day the Baskets are to be offered and sold, when such orders shall be placed by 9:00 AM New
York Time on the day agreed to by the General Partner and the Authorized Purchaser. The day on
which the Marketing Agent receives a valid purchase order is the purchase order date. By placing a
purchase order, an Authorized Purchaser agrees to deposit Treasuries, cash, or a combination of
Treasuries and cash with the Custodian of the Fund. Prior to the delivery of Baskets for a
purchase order, the Authorized Purchaser must also have wired to the Custodian the non-refundable
transaction fee due for the purchase order. “Treasuries” shall be any

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U.S. treasury security less than two years to maturity with an aggregate market value, as
determined in the sole discretion of the Administrator using the valuation procedures set forth in
Exhibit D, that together with any cash amount, will equal the purchase price of the Creation Basket
being purchased.

     The total deposit required to create each Basket (“Creation Basket Deposit”) is an amount of
Treasuries and/or cash with a value that is in the same proportion to the total assets of the Fund
(net of estimated accrued but unpaid fees, expenses and other liabilities) on the date the order to
purchase is properly received as the number of Units to be created under the purchase order is in
proportion to the total number of Units outstanding on the date the order is received, except that
in the case of an Authorized Purchaser’s initial order to purchase one or more Creation Baskets on
the first day the Baskets are to be offered and sold, the Creation Basket Deposit will be in cash
in an amount determined by multiplying the number of Units in the Basket by the closing price of
                                         as listed on the NYMEX on the date the first Creation Basket is sold.

     The General Partner determines, directly in its sole discretion, or in consultation with the
Administrator, the requirements for Treasuries and/or the amount of cash, including the maximum
permitted remaining maturity of a Treasury and the proportions of Treasury and cash, that may be
included in deposits to create Baskets. The Marketing Agent will publish such requirements at the
beginning of each Business Day. Unless otherwise determined by the General Partner, if Treasuries
and cash are to be deposited, the amount of cash deposit required will be the difference between
(i) the aggregate market value of the Treasuries required to be included in a Creation Basket
Deposit as of 4:00 PM New York time on the purchase order date and (ii) the total required deposit.

     An Authorized Purchaser who places a purchase order is responsible for transferring to the
Fund’s account with the Custodian the required amount of Treasuries and/or cash by the end of the
third Business Day following the purchase order date, except in the case of an Authorized
Purchaser’s initial order to purchase one or more Creation Baskets on the first day the Baskets are
to be offered and sold when the Creation Basket Deposit will be due by 12:00 PM New York time or
the date the purchase order was accepted by the Marketing Agent. Upon receipt of the deposit
amount, the Administrator will direct DTC to credit the number of Baskets ordered to the Authorized
Purchaser’s DTC account on the third Business Day following the purchase order date, except in the
case of an Authorized Purchaser’s initial order to purchase one or more Creation Baskets, when the
Administrator will direct DTC to credit the number of Baskets so ordered upon confirmation by the
Custodian that the Creation Basket Deposit has been received by the Custodian. The expense and
risk of delivery and ownership of Treasuries until such Treasuries have been received by the
Custodian on behalf of the Fund shall be borne solely by the Authorized Purchaser.

Section 7. Redemption Procedures.

     On any Business Day, an Authorized Purchaser may place an order with the Marketing Agent to
redeem one or more Redemption Baskets in accordance with this Section 7 and the Procedures.
Redemption orders must be placed by 12:00 PM New York time or the close of regular trading on the
American Stock Exchange, whichever is earlier. A redemption order so

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received is effective on the date it is received in satisfactory form by the Marketing Agent.
The day on which the Marketing Agent receives a valid redemption order is the redemption order
date. By placing a redemption order, an Authorized Purchaser agrees to deliver the Redemption
Baskets to be redeemed through DTC’s book-entry system to the Fund’s account with the Custodian not
later than 11 a.m. on the third Business Day following the effective date of the redemption order.
Prior to the delivery of the redemption distribution for a redemption order, the Authorized
Purchaser must also have wired to the Fund’s account at the Custodian the non-refundable
Transaction Fee due for the redemption order.

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

     The redemption distribution due from the Fund is delivered to the Authorized Purchaser on the
third Business Day following the redemption order date if, by 9:00 AM New York time on such third
Business Day, the Fund’s DTC account has been credited with the Baskets to be redeemed. If the
Fund’s DTC account has not been credited with all of the Baskets to be redeemed by such time, the
redemption distribution is delivered to the extent of whole Baskets received. Any remainder of the
redemption distribution is delivered on the next Business Day to the extent of remaining whole
Baskets received if the Fund receives the fee applicable to the extension of the redemption
distribution date which the General Partner may, from time to time, determine and the remaining
Baskets to be redeemed are credited to the Fund’s DTC account by 9:00 AM New York time on such next
Business Day. Any further outstanding amount of the redemption order shall be cancelled. Pursuant
to instruction from the General Partner, the Custodian may also deliver the redemption distribution
notwithstanding that the Baskets to be redeemed are not credited to the Fund’s DTC account by 9:00
AM New York time on the third Business Day following the redemption order date if the Authorized
Purchaser has collateralized its obligation to deliver the Baskets through DTC’s book entry system
on such terms as the General Partner may from time to time determine.

     The General Partner may, in its discretion, suspend the right of redemption, or postpone the
redemption settlement date, (1) for any period during which the American Stock Exchange or the New
York Mercantile Exchange is closed other than customary weekend or holiday closings, or trading on
the American Stock Exchange or the New York Mercantile Exchange is suspended or restricted, (2) for
any period during which an emergency exists as a result of which delivery, disposal or evaluation
of Treasuries or other assets of the Fund is not reasonably practicable, or (3) for such other
period as the General Partner determines to be necessary for the protection of the limited
partners. None of the General Partner, the Marketing Agent, the Administrator or the

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Custodian will be liable to any person or in any way for any loss or damages that may result
from any such suspension or postponement.

Section 8. Role of Authorized Purchaser.

     (a) The Authorized Purchaser acknowledges that, for all purposes of this Agreement, the
Authorized Purchaser is and shall be deemed to be an independent contractor and has and shall have
no authority to act as agent for the Fund, the Marketing Agent, the Administrator the Custodian or
the General Partner in any matter or in any respect, except as set forth in Section 2(f).

     (b) The Authorized Purchaser will make itself and its employees available, upon request,
during normal business hours to consult with the General Partner and the Marketing Agent concerning
the performance of the Authorized Purchaser’s responsibilities under this Agreement.

     (c) The Authorized Purchaser will maintain records of all sales of Creation Baskets made by or
through it and will furnish copies of such records to the General Partner upon the reasonable
request of the General Partner.

Section 9. Indemnification.

     (a) Indemnification of Authorized Purchaser. The General Partner agrees to indemnify, defend
and hold harmless the Authorized Purchaser, its partners, stockholders, members, directors,
officers and employees and any Affiliate of the foregoing, and the successors and assigns of all of
the foregoing persons, from and against any loss, damage, expense, liability or claim (including
the reasonable cost of investigation) which the Authorized Purchaser or any such person may incur
under the 1933 Act, the Exchange Act, the CEA, the common law or otherwise, insofar as such loss,
damage, expense, liability or claim arises out of or is based upon:

(1) any untrue statement or alleged untrue statement of a material fact contained in the
Registration Statement (or in the Registration Statement as amended or supplement) or in
a Prospectus (the term Prospectus for the purpose of this Section 6 being deemed to
include the Prospectus and the Prospectus as amended or supplemented), or arises out of
or is based upon any omission or alleged omission to state a material fact required to
be stated in either such Registration Statement or such Prospectus or necessary to make
the statements made therein not misleading, except insofar as any such loss, damage,
expense, liability or claim arises out of or is based upon any untrue statement or
alleged untrue statement of a material fact contained in and in conformity with
information concerning the Authorized Purchaser furnished in writing by or on behalf of
the Authorized Purchaser to the General Partner expressly for use in such Registration
Statement;

(2) any untrue statement or alleged untrue statement of a material fact or breach by the
General Partner of any representation or warranty contained this Agreement;

(3) the failure by the General Partner to perform when and as required, any agreement or
covenant contained herein;

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(4) the Authorized Purchaser’s performance of its duties under this Agreement except in
the case of this clause (4), for any loss, damage, expense, liability or claim resulting
from the gross negligence or willful misconduct of the Authorized Purchaser.

In no case is the indemnity of the General Partner in favor of the Authorized Purchaser
and such other persons as are specified in this Section 9(a) to be deemed to protect the
Authorized Purchaser and such persons against any liability to the General Partner or
the Fund to which the Authorized Purchaser would otherwise be subject by reason of
willful misfeasance, bad faith or gross negligence in the performance of its duties or
by reason of its reckless disregard of its obligations and duties under this Agreement.

If any action, suit or proceeding (each, a “Proceeding”) is brought against the
Authorized Purchaser or any such person in respect of which indemnity may be sought
against the General Partner pursuant to the foregoing paragraph, the Authorized
Purchaser or such person shall promptly notify the General Partner in writing of the
institution of such Proceeding and the General Partner shall assume the defense of such
Proceeding, including the employment of counsel reasonably satisfactory to such
indemnified party and payment of all fees and expenses; provided, however, that the
omission to so notify the General Partner shall not relieve the General Partner from any
liability which it may have to the Authorized Purchaser or any such person except to the
extent that it has been materially prejudiced by such failure and has not otherwise
learned of such Proceeding. The Authorized Purchaser or such person shall have the right
to employ its or their own counsel in any such case, but the fees and expenses of such
counsel shall be at the expense of the Authorized Purchaser or of such person unless the
employment of such counsel shall have been authorized in writing by the General Partner
in connection with the defense of such Proceeding or the General Partner shall not have,
within a reasonable period of time in light of the circumstances, employed counsel to
have charge of the defense of such Proceeding or such indemnified party or parties shall
have reasonably concluded that there may be defenses available to it or them which are
different from, additional to or in conflict with those available to the General Partner
(in which case the General Partner shall not have the right to direct the defense of
such Proceeding on behalf of the indemnified party or parties), in any of which events
such fees and expenses shall be borne by the General Partner and paid as incurred (it
being understood, however, that the General Partner shall not be liable for the expenses
of more than one separate counsel (in addition to any local counsel) in any one
Proceeding or series of related Proceedings in the same jurisdiction representing the
indemnified parties who are parties to such Proceeding).

The General Partner shall not be liable for any settlement of any Proceeding effected
without the General Partner’s written consent but if settled with the General Partner’s
written consent, the General Partner agrees to indemnify and hold harmless the
Authorized Purchaser and any such person from and against any loss or liability by
reason of such settlement. Notwithstanding the foregoing sentence, if at any time an
indemnified party shall have requested an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel as contemplated by the second
sentence of this paragraph, then the indemnifying party agrees that it shall be liable
for

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any settlement of any Proceeding effected without its written consent if (i) such
settlement is entered into more than 60 Business Days after receipt by such indemnifying
party of the aforesaid request, (ii) such indemnifying party shall not have fully
reimbursed the indemnified party in accordance with such request prior to the date of
such settlement and (iii) such indemnified party shall have given the indemnifying party
at least 30 Business Days’ prior notice of its intention to settle. No indemnifying
party shall, without the prior written consent of the indemnified party, effect any
settlement of any pending or threatened Proceeding in respect of which any indemnified
party is or could have been a party and indemnity could have been sought hereunder by
such indemnified party, unless such settlement includes an unconditional release of such
indemnified party from all liability on claims that are the subject matter of such
Proceeding and does not include an admission of fault, culpability or a failure to act,
by or on behalf of such indemnified party.

     (b) The Authorized Purchaser agrees to indemnify, defend and hold harmless each of the Fund,
the General Partner and its partners, stockholders, members, directors, officers, employees and any
person who controls the General Partner within the meaning of Section 15 of the 1933 Act or Section
20 of the Exchange Act, and the successors and assigns of all of the foregoing persons, from and
against any loss, damage, expense, liability or claim (including the reasonable cost of
investigation) which the General Partner any such person may incur under the 1933 Act, the Exchange
Act, the CEA, the common law or otherwise, insofar as such loss, damage, expense, liability or
claim arises out of or is based upon any untrue statement or alleged untrue statement of a material
fact contained in and in conformity with information furnished in writing by or on behalf of the
Authorized Purchaser to the General Partner expressly for use in the Registration Statement (or in
the Registration Statement as amended or supplemented by any post-effective amendment thereof) or
in a Prospectus, or arises out of or is based upon any omission or alleged omission to state a
material fact in connection with such information required to be stated in such Registration
Statement or such Prospectus or necessary to make such information not misleading.

     The Authorized Purchaser will also indemnify the General Partner as stated above insofar as
such loss, damage, expense, liability or claim arises out of or is based upon the Authorized
Purchaser’s performance of its duties under this Agreement, except in the case of any loss, damage,
expense, liability or claim resulting from the gross negligence or willful misconduct of the
General Partner. In no case is the indemnity of the Authorized Purchaser in favor of the General
Partner to be deemed to protect the General Partner and such persons against any liability to the
Authorized Purchaser to which the General Partner would otherwise be subject by reason of willful
misfeasance, bad faith or gross negligence in the performance of its duties or by reason of its
reckless disregard of its obligations and duties under this Agreement.

     If any Proceeding is brought against the General Partner or any person referred to in the
preceding paragraph in respect of which indemnity may be sought against the Authorized Purchaser
pursuant to the foregoing paragraph, the General Partner or such person shall promptly notify the
Authorized Purchaser in writing of the institution of such Proceeding and the Authorized Purchaser
shall assume the defense of such Proceeding, including the employment of counsel reasonably
satisfactory to such indemnified party and payment of all fees and expenses; provided, however,

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that the omission to so notify the Authorized Purchaser shall not relieve the Authorized
Purchaser from any liability which it may have to the General Partner or any such person except to
the extent that it has been materially prejudiced by such failure and has not otherwise learned of
such Proceeding. The General Partner or such person shall have the right to employ their own
counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the
General Partner or such person unless the employment of such counsel shall have been authorized in
writing by the Authorized Purchaser in connection with the defense of such Proceeding or the
Authorized Purchaser shall not have, within a reasonable period of time in light of the
circumstances, employed counsel to defend such Proceeding or such indemnified party or parties
shall have reasonably concluded that there may be defenses available to it or them which are
different from or additional to or in conflict with those available to the Authorized Purchaser (in
which case the Authorized Purchaser shall not have the right to direct the defense of such
Proceeding on behalf of the indemnified party or parties, but the Authorized Purchaser may employ
counsel and participate in the defense thereof but the fees and expenses of such counsel shall be
at the expense of the Authorized Purchaser), in any of which events such fees and expenses shall be
borne by the Authorized Purchaser and paid as incurred (it being understood, however, that the
Authorized Purchaser shall not be liable for the expenses of more than one separate counsel (in
addition to any local counsel) in any one Proceeding or series of related Proceedings in the same
jurisdiction representing the indemnified parties who are parties to such Proceeding).

     The Authorized Purchaser shall not be liable for any settlement of any such Proceeding
effected without the written consent of the Authorized Purchaser but if settled with the written
consent of the Authorized Purchaser, the Authorized Purchaser agrees to indemnify and hold harmless
the General Partner and any such person from and against any loss or liability by reason of such
settlement. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have
requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel
as contemplated by the second sentence of the preceding paragraph, then the indemnifying party
agrees that it shall be liable for any settlement of any Proceeding effected without its written
consent if (i) such settlement is entered into more than 60 Business Days after receipt by such
indemnifying party of the aforesaid request, (ii) such indemnifying party shall not have reimbursed
the indemnified party in accordance with such request prior to the date of such settlement and
(iii) such indemnified party shall have given the indemnifying party at least 30 Business Days’
prior notice of its intention to settle. No indemnifying party shall, without the prior written
consent of the indemnified party, effect any settlement of any pending or threatened Proceeding in
respect of which any indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party, unless such settlement includes an unconditional
release of such indemnified party from all liability on claims that are the subject matter of such
Proceeding.

     (c) The indemnity agreements contained in this Section 9 and the covenants, warranties and
representations of the General Partner contained in this Agreement shall remain in full force and
effect regardless of any investigation made by or on behalf of the Authorized Purchaser, its
partners, stockholders, members, directors, officers, employees and or any person (including each
partner, stockholder, member, director, officer or employee of such person) who controls the
Authorized Purchaser within the meaning of Section 15 of the 1933 Act or Section 20 of the Exchange
Act, or by or on behalf of each of the General Partner, the Fund, their partners,

10

 

stockholders, members, directors, officers, employees or any person who controls the General
Partner or the Fund within the meaning of Section 15 of the 1933 Act or Section 20 of the Exchange
Act, and shall survive any termination of this Agreement or the initial issuance and delivery of
the Units. The General Partner and the Authorized Purchaser agree promptly to notify each other of
the commencement of any Proceeding against it and, in the case of the General Partner, against any
of the General Partner’s officers or directors in connection with the issuance and sale of the
Units, or in connection with the Registration Statement or the Prospectus.

Section 10.

     (a) Limitation of Liability.

     None of the General Partner, the Authorized Purchaser, the Marketing Agent, the Administrator,
or the Custodian, shall be liable to each other or to any other person, including any party
claiming by, through or on behalf of the Authorized Purchaser, for any losses, liabilities,
damages, costs or expenses arising out of any mistake or error in data or other information
provided to any of them by each other or any other person or out of any interruption or delay in
the electronic means of communications used by them.

     (b) Tax Liability.

     The Authorized Purchaser shall be responsible for the payment of any transfer tax, sales or
use tax, stamp tax, recording tax, value added tax and any other similar tax or government charge
applicable to the creation or redemption of any Basket made pursuant to this Agreement, regardless
of whether or not such tax or charge is imposed directly on the Authorized Purchaser. To the
extent the General Partner or the Fund is required by law to pay any such tax or charge, the
Authorized Purchaser agrees to promptly indemnify such party for any such payment, together with
any applicable penalties, additions to tax or interest thereon.

Section 11. Acknowledgment.

The Authorized Purchaser acknowledges receipt of a copy of the Prospectus and represents that it
has reviewed and understands such document.

Section 12. Effectiveness and Termination.

     Upon the execution of this Agreement by the parties hereto, this Agreement shall become effective
in this form as of the date first set forth above, and may be terminated at any time by any party
upon thirty (30) days’ prior written notice to the other parties unless earlier terminated: (i) in
accordance with Section 2(a); (ii) upon notice to the Authorized Purchaser by the General Partner
in the event of a breach by the Authorized Purchaser of this Agreement or the procedures described
or incorporated herein; or (iii) at such time as the Fund is terminated.

Section 13. Marketing Materials; Representations Regarding Baskets; Identification in Registration
Statement.

     (a) The Authorized Purchaser represents, warrants and covenants that (i), without the written
consent of the General Partner, the Authorized Purchaser will not make, or permit any of its
representatives to make, any representations concerning the Baskets or the General Partner, the
Fund or any person indemnified by the Authorized Purchaser (the “AP Indemnified Person”) other than
representations contained (A) in the then-current Prospectus of the Fund, (B) in printed
information approved by the General Partner as information supplemental to such Prospectus or

11

 

(C) in any promotional materials or sales literature furnished to the Authorized Purchaser by the
General Partner, and (ii) the Authorized Purchaser will not furnish or cause to be furnished to any
person or display or publish any information or material relating to the Baskets, any AP
Indemnified Person or the Fund that is not consistent with the Fund’s then current Prospectus.
Copies of the then-current Prospectus of the Fund and any such printed supplemental information
will be supplied by the General Partner to the Authorized Purchaser in reasonable quantities upon
request.

     (b) The Authorized Purchaser agrees to comply with the prospectus and disclosure delivery
requirements of the Federal securities and commodities laws. In connection therewith, the
Authorized Purchaser will provide each prospective purchaser with a copy of the Fund’s Prospectus
and, to the extent required under the CEA or regulations promulgated thereunder, obtain (or require
any participant in the distribution of Units in a Creation Basket the Authorized Purchaser has
purchased to obtain) the CEA Acknowledgment from any such purchaser prior to receipt of payment
from the purchaser. The Authorized Purchaser shall (or shall require any participant in
distribution of such Units in a Creation Basket the Authorized Purchaser has purchased) maintain
each such CEA Acknowledgement until the termination of this Agreement, and provide a copy to the
General Partner upon reasonable request.

     (c) The Authorized Purchaser hereby agrees that for the term of this Agreement the General
Partner or its agent, the Marketing Agent, may deliver the then-current Prospectus, and any
supplements or amendments thereto or recirculation thereof, to the Authorized Purchaser in Portable
Document Format (“PDF”) via electronic mail or facsimile in lieu of delivering the Prospectus in
paper form. The Authorized Purchaser may revoke the foregoing agreement at any time by delivering
written notice to the General Partner and, whether or not such agreement is in effect, the
Authorized Purchaser may, at any time, request reasonable quantities of the Prospectus, and any
supplements or amendments thereto or recirculation thereof, in paper form from the General Partner
or its agent, the Marketing Agent. The Authorized Purchaser acknowledges that it has the
capability to access, view, save and print material provided to it in PDF and that it will incur no
appreciable extra costs by receiving the Prospectus in PDF instead of in paper form. The General
Partner will when requested by the Authorized Purchaser make available at no cost the software and
technical assistance necessary to allow the Authorized Purchaser to access, view and print the PDF
version of the Prospectus.

     (d) For as long as this Agreement is effective, the Authorized Purchaser agrees to be
identified as an authorized purchaser of the Fund (i) in the section of the Prospectus included
within the Registration Statement entitled “Creation and Redemption of Units” and in any other
section as may be required by the SEC and (ii) on the Fund’s website. Upon the termination of this
Agreement, (i) during the period prior to when the General Partner qualifies and elects to file on
Form S-3, the General Partner will remove such identification from the Prospectus in the amendment
of the Registration Statement next occurring after the date of the termination of this Agreement
and, during the period after when the General Partner qualifies and elects to file on Form S-3, the
General Partner will promptly file a current report on Form 8-K indicating the withdrawal of the
Authorized Purchaser as an authorized purchaser of the Fund and (ii) the General Partner will
promptly update the Fund’s website to remove any identification of the Authorized Purchaser as an
authorized purchaser of the Fund.

12

 

Section 14. Certain Covenants of the General Partner.

     The General Partner, on its own behalf and on behalf of the Fund, covenants and agrees:

     (a) to advise the Authorized Purchaser promptly of the happening of any event during the term
of this Agreement which could require the making of any change in the Prospectus then being used so
that the Prospectus would not include an untrue statement of material fact or omit to state a
material fact necessary to make the statements therein, in the light of the circumstances under
which they are made, not misleading, and, during such time, to prepare and furnish, at the expense
of the Fund, to the Authorized Purchaser promptly such amendments or supplements to such Prospectus
as may be necessary to reflect any such change;

     (b) to cause ___________, accountants to the Fund, to deliver, at each time (i) the
Registration Statement or the Prospectus is amended or supplemented by the filing of a
post-effective amendment, (ii) a new Registration Statement is filed to register additional
Baskets in reliance on Rule 429, and (iii) there is financial information incorporated by reference
into the Registration Statement or the Prospectus, letters dated such dates and addressed to the
Authorized Purchaser, containing statements and information of the type ordinarily included in
accountants’ letters to underwriters with respect to the financial statements and other financial
information contained in or incorporated by reference into the Registration Statement and the
Prospectus;

     (c) to deliver to the Authorized Purchaser, at each time (i) the Registration Statement or the
Prospectus is amended or supplemented by the filing of a post-effective amendment, (ii) a new
Registration Statement is filed to register additional Baskets in reliance on Rule 429, and (iii)
there is financial information incorporated by reference into the Registration Statement or the
Prospectus, a certification by a duly authorized officer of the General Partner in the form
attached hereto as Exhibit E. In addition, any certificate signed by any officer of the General
Partner and delivered to the Authorized Purchaser or counsel for the Authorized Purchaser pursuant
hereto shall be deemed to be a representation and warranty by the General Partner as to matters
covered thereby to the Authorized Purchaser;

     (d) to furnish directly or through the Marketing Agent to the Authorized Purchaser, at each
time (i) the Registration Statement or the Prospectus is amended or supplemented by the filing of a
post-effective amendment, (ii) a new Registration Statement is filed to register additional Baskets
in reliance on Rule 429, and (iii) there is financial information incorporated by reference into
the Registration Statement or the Prospectus, such documents and certificates in the form as
reasonably requested; and

     (e) to cause the Fund to file a post-effective amendment to the Registration Statement no less
frequently than once per calendar quarter on or about the same time that the Fund files a quarterly
or annual report pursuant to Section 13 or 15(d) of the Exchange Act (including the information
contained in such report), until such time as the Fund’s reports filed pursuant to Section 13 or
15(d) of the Exchange Act are incorporated by reference in the Registration Statement.

13

 

Section 15. Third Party Beneficiaries.

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

Section 16. Force Majeure.

     No party to this Agreement shall incur any liability for any delay in performance, or for the
non-performance, of any of its obligations under this Agreement by reason of any cause beyond its
reasonable control. This includes any act of God or war or terrorism, any breakdown, malfunction or
failure of transmission in connection with or other unavailability of any wire, communication or
computer facilities, any transport, port, or airport disruption, industrial action, acts and
regulations and rules of any governmental or supra national bodies or authorities or regulatory or
self-regulatory organization or failure of any such body, authority or organization for any reason,
to perform its obligations.

Section 17. Miscellaneous.

     (a) Entire Agreement. This Agreement (including any schedules and exhibits attached hereto
and thereto) contain all of the agreements among the parties hereto and thereto with respect to the
transactions contemplated hereby and thereby and supersede all prior agreements or understandings,
whether written or oral, among the parties with respect thereto.

     (b) Amendment and Modification. This Agreement may be amended, modified or supplemented only
by a written instrument executed by all the parties.

     (c) Successors and Assigns; Assignment. All the terms and provisions of this Agreement shall
be binding upon and inure to the benefit of the parties and their respective successors and
permitted assigns. This Agreement shall not be assigned by any party without the prior written
consent of the other parties and any assignment without such consent shall be null and void.

     (d) Waiver of Compliance. Except as otherwise provided in this Agreement, any failure of any
of the parties to comply with any obligation, covenant, agreement or condition herein may be waived
by the party entitled to the benefits thereof only by a written instrument signed by the party
granting such waiver, but any such waiver, or the failure to insist upon strict compliance with any
obligation, covenant, agreement or condition herein, shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure or breach.

     (e) Severability. The parties hereto desire that the provisions of this Agreement be enforced
to the fullest extent permissible under the Law and public policies applied in each jurisdiction in
which enforcement is sought. Accordingly, in the event that any provision of this Agreement would
be held in any jurisdiction to be invalid, prohibited or unenforceable for any reason, such
provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining
provisions of this Agreement or affecting the validity or enforceability of such provision in any
other jurisdiction. Notwithstanding the foregoing, if such provision could be more narrowly

14

 

drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as
to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this
Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

     (f) Notices. All notices, waivers, or other communications pursuant to this Agreement shall
be in writing and shall be deemed to be sufficient if delivered personally, by facsimile (and, if
sent by facsimile, followed by delivery by nationally-recognized express courier), sent by
nationally-recognized express courier or mailed by registered or certified mail (return receipt
requested), postage prepaid, to the parties at the following addresses (or at such other address
for a party as shall be specified by like notice):

	 	(1)	 	if to General Partner, to:
	 
	 	(2)	 	if to the Authorized Purchaser, to:
	 
	 	 	 	[please provide]

All such notices and other communications shall be deemed to have been delivered and received (i)
in the case of personal delivery or delivery by facsimile or e-mail, on the date of such delivery
if delivered during business hours on a Business Day or, if not delivered during business hours on
a Business Day, the first Business Day thereafter, (ii) in the case of delivery by
nationally-recognized express courier, on the first Business Day following dispatch, and (iii) in
the case of mailing, on the third Business Day following such mailing.

     (g) Governing Law; Jurisdiction.

(1) All questions concerning the construction, interpretation and validity of this
Agreement shall be governed by and construed and enforced in accordance with the
domestic laws of the State of New York, without giving effect to any choice or conflict
of law provision or rule (whether in the State of New York or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the State of
New York. In furtherance of the foregoing, the internal law of the State of New York
will control the interpretation and construction of this Agreement, even if under such
jurisdiction’s choice of law or conflict of law analysis, the substantive law of some
other jurisdiction would ordinarily or necessarily apply.

(2) Each party irrevocably consents and agrees, for the benefit of the other parties,
that any legal action, suit or proceeding against it with respect to its obligations,
liabilities or any other matter arising out of or in connection with this Agreement or
any related agreement may be brought in the courts of the State of New York and hereby
irrevocably consents and submits to the non-exclusive jurisdiction of each such court in

15

 

personam, generally and unconditionally with respect to any action, suit or proceeding
for itself and in respect of its properties, assets and revenues. Each party irrevocably
waives any immunity to jurisdiction to which it may otherwise be entitled or become
entitled (including sovereign immunity, immunity to pre-judgment attachment and
execution) in any legal suit, action or proceeding against it arising out of or based on
this Agreement or any related agreement or the transactions contemplated hereby or
thereby which is instituted in any court of the State of New York.

The provisions of this Section 17(g) shall survive any termination of this Agreement, in
whole or in part.

     (h) No Partnership. Nothing in this Agreement is intended to, or will be construed to
constitute the General Partner or the Fund, on the one hand, and the Authorized Purchaser or any of
its Affiliates, on the other hand, as partners or joint venturers; it being intended that the
relationship between them will at all times be that of independent contractors.

     (i) Interpretation. The article and section headings contained in this Agreement are solely
for the purpose of reference, are not part of the agreement of the parties and shall not in any way
affect the meaning or interpretation of this Agreement.

     (j) No Strict Construction. The language used in this Agreement will be deemed to be the
language chosen by the parties to express their mutual intent, and no rule of strict construction
will be applied against any party.

     (k) Counterparts; Facsimile Signatures. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original but all of which together shall constitute
one and the same instrument. Facsimile counterpart signatures to this Agreement shall be
acceptable and binding.

     (l) Other Usages. The following usages shall apply in interpreting this Agreement: (i)
references to a governmental or quasigovernmental agency, authority or instrumentality shall also
refer to a regulatory body that succeeds to the functions of such agency, authority or
instrumentality; and (ii) “including” means “including, but not limited to.”

Section 18. Confidentiality.

	 	(a)	 	The General Partner and the Authorized Purchaser shall during the Term and for one
(1) year thereafter maintain in confidence, use only for the purposes provided for in
this Agreement, and not disclose to any third party, without first obtaining the other
party’s consent in writing, any and all Confidential Information (as defined below) such
party receives from the other party; provided, however, that either party may disclose
Confidential Information received from the other party to those of its Representatives as
may be necessary for such party to carry out its obligations under this Agreement.
	 
	 	 	 	“Confidential Information” shall mean all information or data of a party that is
disclosed to or received by the other party, whether orally, visually or in writing, in
any form,

16

 

	 	 	 	including, without limitation, information or data which relates to such party’s
business or operations, research and development, marketing plans or activities, or
actual or potential products.

	 	(b)	 	Notwithstanding the provisions of this Agreement to the contrary, a party shall
have no liability to the other party for the disclosure or use of any Confidential
Information of the other party if the Confidential Information:

	 	(i)	 	is known to such party at the time of disclosure other than as the
result of a breach of this Section 18 by such party;
	 
	 	(ii)	 	has been or becomes publicly known, other than as the result of a
breach of this Section 18 by such party, or has been or is publicly disclosed by
the other party;
	 
	 	(iii)	 	is received by such party after the date of this Agreement from a
third party (unless such third party breaches an obligation of confidentiality to
the other party); or
	 
	 	(iv)	 	is required to be disclosed by Law or similar compulsion or in
connection with any legal proceeding, provided that such party shall promptly
inform the other party in writing of such requirement and that such disclosure
shall be limited to the extent so required and, except to the extent prohibited by
Law, such party shall reasonably cooperate with the other party (at the expense of
the other party) in seeking a protective order or other suitable confidentiality
protections.

	 	(c)	 	The parties recognize and acknowledge that a breach or threatened breach by a party
of the provisions of this Section 18 may cause irreparable and material loss and damage
to the other party which cannot be adequately remedied at law and that, accordingly, in
addition to, and not in lieu of, any damages or other remedy to which the non-breaching
party may be entitled, the issuance of an injunction or other equitable remedy (without
the requirement that a bond or other security be posted) is an appropriate remedy for the
non-breaching party for any breach or threatened breach of the obligations set forth in
this Section 18.
	 
	 	(d)	 	Each party agrees that it will use the same degree of care, but no less than a
reasonable degree of care, in safeguarding the Confidential Information of the other
party as it uses for its own Confidential Information of a similar nature. Each party
shall promptly notify the other party in writing of any misuse, misappropriation or
unauthorized disclosure of the Confidential Information of the other party which may come
to such party’s attention.
	 
	 	(e)	 	Upon the termination of this Agreement, if requested in writing by the other party,
each party shall, at such party’s option, promptly destroy or return to the other party
all Confidential Information received from the other party, all copies and extracts of
such Confidential Information and all documents or other media containing any such
Confidential Information.

17

 

IN WITNESS WHEREOF, the Authorized Purchaser and the General Partner have caused this Agreement to
be executed by their duly authorized representatives as of the date first set forth above.

	 	 	 	 	 
	By:	 	 	 	  
	Name:

Title:
	 	 	 	 
	Address:
	 	 	 	 
	Telephone:
	 	 	 	 
	Facsimile:
	 	 	 	 
	 
	 	 	 	 
	[AUTHORIZED PURCHASER]
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	Title:
	 	 	 	 
	Address:
	 	 	 	 
	Telephone:
	 	 	 	 
	Facsimile:
	 	 	 	 

18

 

EXHIBIT A

_____________________ FUND

CREATION AND REDEMPTION PROCEDURES

Scope of Procedures and Overview

These procedures (the “Procedures”) describe the processes by which one or more Baskets of
________________ Fund Units (the “Shares”) may be purchased by an Authorized Purchaser, or, once
Shares have been issued, redeemed by an Authorized Purchaser. Shares may be created or redeemed
only in blocks of ____________ Shares (each such block, a “Basket”).

For purposes of these Procedures, a “Business Day” is defined as any day other than a day on which
the American Stock Exchange (“AMEX”), the New York Mercantile Exchange (“NYMEX”) or the New York
Stock Exchange (“NYSE”) is closed for regular trading.

Baskets are issued pursuant to the Prospectus, which will be delivered by the Marketing Agent to
each Authorized Purchaser prior to its execution of the Authorized Purchaser Agreement, and are
issued and redeemed in accordance with the Authorized Purchaser Agreement. Baskets may be issued
and redeemed on any Business Day by the Marketing Agent in exchange for cash and/or Treasuries,
which the Custodian receives from Authorized Purchasers or transfers to Authorized Purchasers, in
each case on behalf of the Fund.

Upon acceptance of the Authorized Purchaser Agreement, the Marketing Agent will assign a personal
identification number (a “PIN number”) to each Authorized Person authorized to act for the an
Authorized Purchaser. This will allow the Authorized Purchaser through its Authorized Person(s) to
place Purchase Order(s) or Redemption Order(s) for Baskets.

Important Notes:

	 	•	 	Any Order is subject to rejection by the General Partner or the Marketing Agent, as
agent of the General Partner, for the reasons set forth in the Authorized Purchaser Agreement.
	 
	 	•	 	All Orders are subject to the provisions of the Partnership Agreement, the Prospectus
and the Authorized Purchaser Agreement relating to unclear or ambiguous instructions.
	 
	 	•	 	The Authorized Purchaser, and each distributor offering and selling Units as part of
the distribution of such Units, shall comply with the prospectus delivery and disclosure
requirements of the 1933 Act as well as the analogous requirements under the CEA, including, the
requirement that prospective investors provide an acknowledgement of receipt of such disclosure
materials prior to the payment for any Units.

CREATION PROCESS

An order to purchase one or more Baskets placed by an Authorized Purchaser with the Marketing Agent
by 12:00 PM New York time or the close of regular trading on the AMEX, whichever is

 

 

earlier (the “Order Cut-Off Time”) on a Business Day (such day, “CREATION T”) results in the
transfer to the Authorized Purchaser’s account at The Depository Trust Company (“DTC”) of Baskets
the Authorized Purchaser has purchased, in most instances, by 9:00 AM New York time on CREATION
T+3:

CREATION PROCEDURES

1. By the Order Cut-Off Time (the earlier of the close of regular trading on the AMEX or 12:00 PM
New York time), an Authorized Person of the Authorized Purchaser calls the Marketing Agent at (303)
623-2577 to notify such agent that the Authorized Purchaser wishes to place a Purchase Order to
create an identified number of Baskets and to request that it be provided with an order number (an
“Order Number”). The Authorized Person provides a PIN number as identification. The Marketing
Agent provides the Authorized Purchaser with an Order Number for the Authorized Purchaser’s
Purchase Order Form. The Authorized Purchaser then completes and faxes to the Marketing Agent the
Purchase Order Form included as Exhibit B to the Authorized Purchaser Agreement. The Purchase
Order Form must include the Authorized Person’s signature, the number of Baskets being purchased,
and the Order Number.

2. If the Marketing Agent has not received the Purchase Order Form from the Authorized Purchaser
within 15 minutes after the Marketing Agent receives the phone call from the Authorized Purchaser
referenced in item (1) above, the Marketing Agent places a phone call to the Authorized Purchaser
to enquire about the status of the Order. If the Authorized Purchaser does not fax the Purchase
Order Form to the Marketing Agent within 15 minutes after the Marketing Agent’s phone call, the
Authorized Purchaser’s Order is cancelled. The Marketing Agent will then notify the Authorized
Purchaser that the Order has been cancelled via telephone call.

3. If the Marketing Agent has received the Authorized Purchaser’s Purchase Order Form on time in
accordance with the preceding timing rules, then by 1:00 PM New York time the Marketing Agent
returns to the Authorized Purchaser a copy of the Purchase Order Form submitted, marking it
“Affirmed.”

4. Based on the Purchase Orders placed with it on CREATION T, the Marketing Agent sends a facsimile
to the Transfer Agent indicating the total number of creation units and total amount of cash and/or
Treasuries for which the Marketing Agent will require an allocation into the custodial accounts of,
respectively, the Authorized Purchaser and the Fund on CREATION T+3. If the Marketing Agent
rejects a Purchase Order pursuant to the Authorized Purchaser Agreement after the foregoing
messages are given to the Custodian, the Marketing Agent will notify the Transfer Agent of such
rejection as soon as practicable but, in any event, by 1:30 PM EST the same day, identifying the
Authorized Purchaser whose Purchase Order was rejected and the amount of Units contained in the
rejected Purchase Order. The Transfer Agent will address any such rejection notifications received
after 1:30 pm EST only on a best efforts basis.

REDEMPTION PROCESS

An order to redeem one or more Baskets placed by an Authorized Purchaser with the Marketing Agent
by 12:00 PM New York time or the close of regular trading on the AMEX, whichever is

2

 

earlier, on a Business Day (such day, “REDEMPTION T”) results in the following taking place by
11:00 AM New York time on REDEMPTION T+3:

	 	•	 	Transfer to the account at DTC and the subsequent cancellation of the relevant number
of the Authorized Purchaser’s Baskets; and
	 
	 	•	 	Transfer to the Authorized Purchaser by credit to the Authorized Purchaser’s account
of cash and Treasuries, if any, in the relevant amount(s) corresponding to the Baskets delivered
for redemption (the “Redemption Distribution”).

REDEMPTION PROCEDURES

REDEMPTION T (REDEMPTION ORDER TRADE DATE)

1. By the Order Cut-off Time, an Authorized Person of the Authorized Purchaser calls the Marketing
Agent at (303) 623–2577 to notify the Marketing Agent that the Authorized Purchaser wishes to place
a Redemption Order with the Marketing Agent to redeem an identified number of Baskets and to
request that the Marketing Agent provide an Order Number. The Authorized Person provides a PIN
number as identification to the Marketing Agent. The Marketing Agent provides the Authorized
Purchaser with an Order Number for the Authorized Purchaser’s Redemption Order Form. The
Authorized Purchaser then completes and faxes to the Marketing Agent the Redemption Order Form
included as Exhibit B to the Authorized Purchaser Agreement. The Redemption Order Form must
include the Authorized Person’s signature, the number of Baskets redeemed, and the Order Number
previously provided by the Marketing Agent.

2. If the Marketing Agent has not received the Redemption Order Form from the Authorized Purchaser
within 15 minutes after the Marketing Agent receives the phone call from the Authorized Purchaser
referenced in item (1) above, the Marketing Agent places a phone call to the Authorized Purchaser
to enquire about the status of the Order. If the Authorized Purchaser does not fax the Redemption
Order Form to the Marketing Agent within 15 minutes after the Marketing Agent’s phone call, the
Authorized Purchaser’s Order is cancelled. The Marketing Agent will then notify the Authorized
Purchaser that the Order has been cancelled via telephone call.

3. If the Marketing Agent has received the Authorized Purchaser’s Redemption Order Form on time in
accordance with the preceding timing rules, then by 1:00 PM New York. time the Marketing Agent
returns to the Authorized Purchaser a copy of the Redemption Order Form submitted, marking it
“Affirmed.” The Marketing Agent also indicates on the Redemption Order Form the amount of
Treasuries and/or cash, if any, to be delivered in the Redemption Distribution, and provides
details of the method of payment to be used for the Transaction Fee and the method of delivery of
the Treasuries and/or cash portion, if any, of the Redemption Distribution.

4. By the 1:00 PM New York time), the Marketing Agent sends a facsimile containing instructions to
the Transfer Agent to transfer on REDEMPTION T+3 from the custodial accounts of, respectively, the
Authorized Purchaser and the Fund (“deallocate”) the total number of creation units and the total
amount of cash and/or Treasuries required to settle the Redemption Orders received by the Marketing
Agent on REDEMPTION T. If the Marketing Agent rejects a

3

 

Redemption Order pursuant to the Authorized Purchaser Agreement after the foregoing message is
sent, the Marketing Agent will notify the Transfer Agent of such rejection as soon as practicable
but, in any event, by 1:30 pm EST the same day, identifying the Authorized Purchaser whose
Redemption Order was rejected and the amount of Units contained in the rejected Redemption Order.
The Transfer Agent will address any such rejection notifications received after 1:30 pm EST only on
a best efforts basis.

REDEMPTION T+3

1. By 9:00 AM New York time, the Authorized Purchaser delivers free to the relevant account at DTC
the Baskets to be redeemed.

2. If the Custodian does not receive from a redeeming Authorized Purchaser all Shares comprising
the Baskets being redeemed by 9:00 AM New York time, (i) the Custodian will, only upon instruction
from the General Partner, settle the Redemption Order to the extent of whole Baskets received from
the Authorized Purchaser and (ii) the Marketing Agent will keep the redeeming Authorized
Purchaser’s Redemption Order open until 9:00 AM New York time on the following Business Day
(REDEMPTION T+4) as to the balance of the Redemption Order (such balance, the “Suspended Redemption
Order”). For each day (whether or not a Business Day) the Redemption Order is held open, the
Authorized Purchaser will be charged the greater of $300 or $30 times the number of Baskets
included in the Suspended Redemption Order, as determined in the sole discretion of the Fund.

REDEMPTION T+4

1. By 9:00 AM. New York time, the redeeming Authorized Purchaser must deliver free to the account
at DTC the Basket(s) comprising the Suspended Redemption Order. The Marketing Agent will settle
the Suspended Redemption Order to the extent of whole Baskets received. Any balance of the
Suspended Redemption Order will be cancelled.

2. The sequence of instructions and events related to the settlement of the Suspended Redemption
Order on REDEMPTION T+4 will be made in the manner provided for a Redemption Order under REDEMPTION
T+3.

* * * *

4

 

EXHIBIT A-1

                                         FUND

INITIAL CREATION PROCEDURES

Scope of Procedures and Overview

These procedures (the “Initial Procedures”) describe the process by which one or more Baskets of
                     Fund Units (the “Shares”) may be purchased by an Authorized Purchaser. Shares may be
created only in blocks of                      Shares (each such block, a “Basket”).

For purposes of these Initial Procedures, a “Business Day” is defined as any day other than a day
on which the American Stock Exchange (“AMEX”), the New York Mercantile Exchange (“NYMEX”) or the
New York Stock Exchange (“NYSE”) is closed for regular trading.

Baskets are issued pursuant to the Prospectus, which will be delivered by the Marketing Agent to
the Authorized Purchaser prior to its execution of the Authorized Purchaser Agreement, and are
issued in accordance with the Authorized Purchaser Agreement. Baskets may be issued on any
Business Day by the Marketing Agent in exchange for cash and/or Treasuries, which the Custodian
receives from the Authorized Purchaser on behalf of the Fund.

Upon acceptance of the Authorized Purchaser Agreement, the Marketing Agent will assign a personal
identification number (a “PIN number”) to the Authorized Person authorized to act for the
Authorized Purchaser. This will allow the Authorized Purchaser through its Authorized Person(s) to
place the initial purchase order for Baskets.

Important Notes:

	 	•	 	Any Order is subject to rejection by the General Partner or the Marketing Agent, as
agent of the General Partner, for the reasons set forth in the Authorized Purchaser Agreement.
	 
	 	•	 	All Orders are subject to the provisions of the Partnership Agreement, the Prospectus
and the Authorized Purchaser Agreement relating to unclear or ambiguous instructions.
	 
	 	•	 	The Authorized Purchaser, and each distributor offering and selling Units as part of
the distribution of such Units, shall comply with the prospectus delivery and disclosure
requirements of the 1933 Act as well as the analogous requirements under the Commodity Exchange
Act, including, the requirement that prospective investors provide an acknowledgement of receipt of
such disclosure materials prior to the payment for any Units.
	 
	 	•	 	The Authorized Purchaser will purchase Creation Baskets at an initial offering price
per Unit equal to the closing price of                                          as listed on the NYMEX on the last
business day prior to the effective date of the registration statement. The effective date will be
the date the first Creation Basket is sold and the proceeds are invested.

 

 

CREATION PROCESS

An order to purchase one or more of the initial Baskets placed by the Authorized Purchaser with the
Marketing Agent by 9:00 AM New York time (the “Order Cut-Off Time”) on a Business Day (such day,
“CREATION T”) results in the transfer to the Authorized Purchaser’s account at The Depository Trust
Company (“DTC”) of Baskets the Authorized Purchaser has purchased by 12:00 PM New York time on
CREATION T+0 if payment for such Baskets has been received by the Custodian prior to that time:

CREATION PROCEDURES

1. By the Order Cut-Off Time (the earlier of the close of regular trading on the AMEX or 9:00 AM
New York time), an Authorized Person of the Authorized Purchaser calls the Marketing Agent at (303)
623-2577 to notify such agent that the Authorized Purchaser wishes to place a Purchase Order to
create an identified number of Baskets and to request that it be provided with an order number (an
“Order Number”). The Authorized Person provides a PIN number as identification. The Marketing
Agent provides the Authorized Purchaser with an Order Number for the Authorized Purchaser’s
Purchase Order Form. The Authorized Purchaser then completes and faxes to the Marketing Agent the
Purchase Order Form included as Exhibit B to the Authorized Purchaser Agreement. The Purchase
Order Form must include the Authorized Person’s signature, the number of Baskets being purchased,
and the Order Number.

2. If the Marketing Agent has not received the Purchase Order Form from the Authorized Purchaser
within 15 minutes after the Marketing Agent receives the phone call from the Authorized Purchaser
referenced in item (1) above, the Marketing Agent places a phone call to the Authorized Purchaser
to enquire about the status of the Order. If the Authorized Purchaser does not fax the Purchase
Order Form to the Marketing Agent within 15 minutes after the Marketing Agent’s phone call, the
Authorized Purchaser’s Order is cancelled. The Marketing Agent will then notify the Authorized
Purchaser that the Order has been cancelled via telephone call.

3. If the Marketing Agent has received the Authorized Purchaser’s Purchase Order Form on time in
accordance with the preceding timing rules, then by 10:00 AM New York time the Marketing Agent
returns to the Authorized Purchaser a copy of the Purchase Order Form submitted, marking it
“Affirmed.”

4. Based on the Purchase Orders placed with it on CREATION T, the Marketing Agent sends a facsimile
to the Transfer Agent indicating the total number of creation units and total amount of cash and/or
Treasuries for which the Marketing Agent will require an allocation into the custodial accounts of,
respectively, the Authorized Purchaser and the Fund on CREATION T+0 once the Custodian confirms to
the Transfer Agent that the payment for such Baskets in same day funds has been received by it from
the Authorized Purchaser . If the Marketing Agent rejects a Purchase Order pursuant to the
Authorized Purchaser Agreement after the foregoing messages are given to the Custodian, the
Marketing Agent will notify the Transfer Agent of such rejection as soon as practicable but, in any
event, by 10:30 AM EST the same day, identifying the amount of cash and/or Treasuries contained in
the rejected Purchase Order. The Transfer Agent will address any such rejection notifications
received after 10:30 AM EST only on a best efforts basis.

2

 

EXHIBIT B

                                         FUND

 

PURCHASE/ REDEMPTION ORDER FORM

 

CONTACT INFORMATION FOR ORDER EXECUTION:

	 	 	 
	Telephone order number:

	 	Telex Number

	Facsimile number:

	 	Business Number

	 

ALL ITEMS IN PART I MUST BE COMPLETED BY AN AUTHORIZED PURCHASER. THE DISTRIBUTOR AND/OR THE
TRUSTEE, IN THEIR DISCRETION, MAY REJECT ANY ORDER NOT SUBMITTED IN COMPLETE FORM.

1. TO BE COMPLETED BY AUTHORIZED PURCHASER:

	 	 	 
	Date:
	 	Time: 

	Broker Name: 

	 	Firm Name: 

	NSCC Participant Number: 

	 	DTC Participant Number: 

	Telephone Number: 

	 	Telex Number: 

	Fax Number: 
	 	 

	 	 	 	 	 
	Type of Order (Check One)
	 	 

	 	 
	 
	 	 	 	 
	Amount Created Units (100,000 Shares)

	 	 	 	 
	 
	 	 	 	 
	Amount Written Out

	 	 	 	 
	 
	 	 	 	 
	Amount Redeemed Units (100,000 Shares)

	 	 	 	 
	 
	 	 	 	 
	Amount Written Out:

	 	 	 	 

Order #:                                         

Authorized Person’s Signature                                         

II. TO BE COMPLETED BY ALPS DISTRIBUTORS, INC.:

This certifies that the above order has been:

                     Accepted by the Marketing Agent (for purchase or redemption)

                     Declined —  Reason:                                            
                                     

	 	 	 	 	 	 	 
	 

Date

	 	 

Time
	 	 

Authorized Signature
	 	  

 

 

EXHIBIT C

                                         FUND

FORM OF CERTIFIED AUTHORIZED PERSONS

OF AUTHORIZED PURCHASER

The following are the names, titles and signatures of all persons (each an “Authorized Person”)
authorized to give instructions relating to any activity contemplated by the                      Fund
Authorized Purchaser Agreement or any other notice, request or instruction on behalf of the
Authorized Purchaser pursuant to the aforementioned agreement.

	 	 	 	 	 
	Authorized Purchaser:
	 	 	 	 

	 	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 
	Signature:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 
	Signature:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 
	Signature:
	 	 	 	 
	 

	 	 

	 	 

The undersigned, [name], [title] of [company], does hereby certify that the persons listed above
have been duly elected to the offices set forth beneath their names, that they presently hold such
offices, that they have been duly authorized to act as Authorized Persons pursuant to the
                     Fund Authorized Purchaser Agreement by and between [Authorized Purchaser] and the
General Partner of                      Fund, dated                      2007, and that their signatures set forth
above are their own true and genuine signatures.

 

 

IN WITNESS WHEREOF, the undersigned has hereby set his/her hand and the seal of [company] on the
date set forth below.

	 	 	 	 	 
	
Subscribed and sworn to before me 

this ___ day of ___________, 2007
 

	 	 
	By:
	 	 
	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	Signature:
	 	 	 	 
	 

	 	 

	 	 

Notary Public

2

 

EXHIBIT D

BBH Pricing Policies

Futures, Forwards, Swaps, Options and Treasuries

The pricing policies stated below are used for all BBH clients, including Mutual Fund Registered Investment Companies. These policies have been audited by
numerous accounting firms during annual fund audits.

Futures

     Futures traded on exchanges are valued using the closing settlement prices quoted on the
relevant exchange and obtained from pricing sources, typically Bloomberg or Reuters.

Forward Currency Contracts

     BBH obtains the WM Reuters London Close closing spot rates and the WM Reuters London Close
forward point rates on a daily basis. The currency forward contract pricing model derives the
differential in point rates to the expiration date of the forward and calculates its present value.
The forward is valued at the net of the present value and the spot rate.

Swaps

     Swaps and other similar derivative or contractual type instruments are valued at a price
provided by a single broker or dealer, typically the counterparty. If no such price is available,
the contract is valued at a price at which the counterparty to such contract would repurchase the
instrument or terminate the contract.

Options

Option contracts on securities, currencies, indices, futures contracts, commodities and other
instruments shall be valued at the last sale price on the exchange or market that is the Primary
Market. If a contract did not trade on the Primary Market, it shall be valued at the last sale
price on another exchange or market where it did trade. If there is no such sale price, the value
shall be the most recent bid quotation.

Sale prices and bid quotations indicated above shall be supplied by a Pricing Service (Reuters,
Bloomberg, IDC, etc.). If a Pricing Service is not able to provide such sale prices or bid
quotations, the value shall be determined by taking the mean between the bid and the asked
quotations provided by a single broker or dealer, unless the broker or dealer can only provide a
bid quotation, in which case the value shall be such bid quotation.

Except as provided below, OTC currency options are valued by uploading the applicable implied
volatility rates from Reuters or Bloomberg. Other inputs are either uploaded (interest rates,
spots) or are specified when the ticker symbols are set up (expiration date, strike). OTC currency
options are then priced by using the Garman-Kohlhagen modified Black-Scholes formula, which adjusts
for a constant yield versus a fixed dividend.

Except as provided below, OTC equity/index options are priced according to the contract
specifications (days to expiration, current spot index level, interest rates, dividends, strike
price) using the Black-Scholes

 

 

pricing model, modified for dividends. The volatility input assumption is interpolated from the
previous day’s price.

US Treasuries

BBH uses an evaluated bid supplied by IDC for treasury prices.

	 	 	 	 	 	 	 
	Brown Brothers Harriman & Co.

	 	 	 	 	 	 
	50 Milk Street, Boston, MA 02109-3661

	 	 	 	 	 	 
	www.bbh.com Tel. 617.742.1818

	 	 	2	 	 	 

 

 

EXHIBIT E

                                         FUND

OFFICER’S CERTIFICATE

The undersigned, a duly authorized officer of                     , a Delaware limited liability
company (the “General Partner”), and pursuant to Section 13(d) of the                      Fund
Authorized Purchaser Agreement (the “Agreement”), dated as of                     , 2006, by and between the
General Partner and [Authorized Purchaser], (“the Authorized Purchaser”), hereby certifies that:

1. Each of the following representations and warranties of the General Partner is true and correct
in all material respects as of the date hereof:

     (a) the Prospectus does not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein, in light
of the circumstances under which they were made, not misleading; the Registration Statement
complies in all material respects with the requirements of the 1933 Act and the Prospectus complies
in all material respects with the requirements of the 1933 Act and any statutes, regulations,
contracts or other documents that are required to be described in the Registration Statement or the
Prospectus or to be filed as exhibits to the Registration Statement have been so described or
filed; the conditions to the use of Form S-1 or S-3, if applicable, have been satisfied; the
Registration Statement does not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading and the Prospectus does not contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading; provided, however, that the
General Partner makes no warranty or representation with respect to any statement contained in the
Registration Statement or any Prospectus in reliance upon and in conformity with information
concerning the Authorized Purchaser and furnished in writing by or on behalf of the Authorized
Purchaser to the General Partner expressly for use in the Registration Statement or such
Prospectus; and neither the General Partner nor any person known to the General Partner acting on
behalf of the Fund has distributed nor will distribute any offering material other than the
Registration Statement or the Prospectus;

     (b) the Fund has been duly formed and is validly existing as an investment fund under the laws
of the State of Delaware, as described in the Registration Statement and the Prospectus, and as
described in the Prospectus, the Marketing Agent is authorized to issue and deliver the Baskets to
the Authorized Purchaser;

     (c) the General Partner has been duly organized and is validly existing as a limited liability
company in good standing under the laws of the State of Delaware, with full power and authority to
conduct its business as described in the Registration Statement and the Prospectus, and has all
requisite power and authority to execute and deliver this Agreement;

3

 

     (d) the General Partner is duly qualified and is in good standing in each jurisdiction where
the conduct of its business requires such qualification; and the Fund is not required to so qualify
in any jurisdiction;

     (e) the outstanding Units have been duly and validly issued and are fully paid and
non-assessable and free of statutory and contractual preemptive rights, rights of first refusal and
similar rights;

     (f) the Units conform in all material respects to the description thereof contained in the
Registration Statement and the Prospectus and the holders of the Units will not be subject to
personal liability by reason of being such holders;

     (g) this Agreement has been duly authorized, executed and delivered by the General Partner and
constitutes the valid and binding obligations of the General Partner, enforceable against the
General Partner in accordance with its terms;

     (h) the General Partner is not in breach or violation of or in default under (nor has any
event occurred which with notice, lapse of time or both would result in any breach or violation of,
constitute a default under or give the holder of any indebtedness (or a person acting on such
holder’s behalf) the right to require the repurchase, redemption or repayment of all or a part of
such indebtedness under) its constitutive documents, or any indenture, mortgage, deed of trust,
bank loan or credit agreement or other evidence of indebtedness, or any license, lease, contract or
other agreement or instrument to which the General Partner is a party or by which any of them or
any of their properties may be bound or affected, and the execution, delivery and performance of
this Agreement, the issuance and sale of Shares to the Authorized Purchaser hereunder and the
consummation of the transactions contemplated hereby does not conflict with, result in any breach
or violation of or constitute a default under (nor constitute any event which with notice, lapse of
time or both would result in any breach or violation of or constitute a default under),
respectively, the amended and restated limited liability company agreement of the General Partner,
or any indenture, mortgage, deed of trust, bank loan or credit agreement or other evidence of
indebtedness, or any license, lease, contract or other agreement or instrument to which the General
Partner is a party or by which, respectively, the General Partner or any of its properties may be
bound or affected, or any federal, state, local or foreign law, regulation or rule or any decree,
judgment or order applicable to the General Partner or the Fund;

     (i) no approval, authorization, consent or order of or filing with any federal, state, local
or foreign governmental or regulatory commission, board, body, authority or agency is required in
connection with the issuance and sale of Creation Baskets to the Authorized Purchaser hereunder or
the consummation by the General Partner or the Fund of the transactions contemplated hereunder
other than registration of the Units under the 1933 Act and the filing of the Prospectus with the
National Futures Association, which has been effected, and any necessary qualification under the
securities or blue sky laws of the various jurisdictions in which the Units are being offered or
under the rules and regulations of the American Stock Exchange;

     (j) except as set forth in the Registration Statement and the Prospectus (i) no person has the
right, contractual or otherwise, to cause the Fund to issue or sell to it any Units or other equity

4

 

interests of the Fund, and (ii) no person has the right to act as an underwriter or as a
financial advisor to the Fund in connection with the offer and sale of the Units, in the case of
each of the foregoing clauses (i), and (ii), whether as a result of the filing or effectiveness of
the Registration Statement or the sale of the Units as contemplated thereby or otherwise; no person
has the right, contractual or otherwise, to cause the General Partner on behalf of the Fund or the
Fund to register under the 1933 Act any other equity interests of the Fund, or to include any such
shares or interests in the Registration Statement or the offering contemplated thereby, whether as
a result of the filing or effectiveness of the Registration Statement or the sale of the Units as
contemplated thereby or otherwise;

     (k) each of the General Partner and the Fund has all necessary licenses, authorizations,
consents and approvals and has made all necessary filings required under any federal, state, local
or foreign law, regulation or rule, and has obtained all necessary authorizations, consents and
approvals from other persons, in order to conduct its respective business; the General Partner is
not in violation of, or in default under, or has not received notice of any proceedings relating to
revocation or modification of, any such license, authorization, consent or approval or any federal,
state, local or foreign law, regulation or rule or any decree, order or judgment applicable to the
General Partner;

     (l) all legal or governmental proceedings, affiliate transactions, off-balance sheet
transactions, contracts, licenses, agreements, leases or documents of a character required to be
described in the Registration Statement or the Prospectus or to be filed as exhibits to the
Registration Statement have been so described or filed as required;

     (m) except as set forth in the Registration Statement and the Prospectus, there are no
actions, suits, claims, investigations or proceedings pending or threatened or contemplated to
which the General Partner or the Fund, or any of the General Partner’s directors or officers, is
or would be a party or of which any of their respective properties are or would be subject at law
or in equity, before or by any federal, state, local or foreign governmental or regulatory
commission, board, body, authority or agency;

     (n) Eisner LLP, whose report on the audited financial statements of the Fund is filed with the
SEC as part of the Registration Statement and the Prospectus, are independent public accountants as
required by the 1933 Act;

     (o) the audited financial statement(s) included in the Prospectus, together with the related
notes and schedules, presents fairly the financial position of the Fund as of the date indicated
and has been prepared in compliance with the requirements of the 1933 Act and in conformity with
generally accepted accounting principles; there are no financial statements (historical or pro
forma) that are required to be included in the Registration Statement and the Prospectus that are
not included as required; and the Fund does not have any material liabilities or obligations,
direct or contingent (including any off-balance sheet obligations), not disclosed in the
Registration Statement and the Prospectus;

     (p) subsequent to the respective dates as of which information is given in the Registration
Statement and the Prospectus, there has not been (i) any material adverse change,

5

 

(ii) any transaction which is material to the General Partner or the Fund taken as a whole, (iii)
any obligation, direct or contingent (including any off-balance sheet obligations), incurred by the
General Partner or the Fund, which is material to the Fund, (iv) any change in the Units purchased
by the Authorized Purchaser or outstanding indebtedness of the General Partner or the Fund or (v)
any dividend or distribution of any kind declared, paid or made on such Units;

     (q) the Fund is not and, after giving effect to the offering and sale of the Units, will not
be an “investment company” or an entity “controlled” by an “investment company,” as such terms are
defined in the Investment Company Act;

     (r) except as set forth in the Registration Statement and the Prospectus, the General Partner
and the Fund own, or have obtained valid and enforceable licenses for, or other rights to use, the
inventions, patent applications, patents, trademarks (both registered and unregistered),
tradenames, copyrights, trade secrets and other proprietary information described in the
Registration Statement and the Prospectus as being owned or licensed by them or which are necessary
for the conduct of their respective businesses, (collectively, “Intellectual Property”);

(i) to the knowledge of the General Partner or the Fund, there are no third parties
who have or will be able to establish rights to any Intellectual Property, except for
the ownership rights of the owners of the Intellectual Property which is licensed to
the General Partner or the Fund;

(ii) to the knowledge of the General Partner or the Fund, there is no infringement by
third parties of any Intellectual Property;

(iii) there is no pending or, to the knowledge of the General Partner or the Fund,
threatened action, suit, proceeding or claim by others challenging the General
Partner or the Fund’s rights in or to any Intellectual Property, and the General
Partner and the Fund are unaware of any facts which could form a reasonable basis for
any such claim;

(iv) there is no pending or, to the knowledge of the General Partner or the Fund,
threatened action, suit, proceeding or claim by others challenging the validity or
scope of any Intellectual Property as to which the General Partner and the Fund have
no knowledge of any such pending or threatened claims, and the General Partner and
the Fund are unaware of any facts which could form a reasonable basis for any such
claim;

(v) there is no pending or, to the knowledge of the General Partner or the Fund,
threatened action, suit, proceeding or claim by others that the General Partner or
the Fund infringes or otherwise violates any patent, trademark, copyright, trade
secret or other proprietary rights of others, and the General Partner and the Fund
are unaware of any facts which could form a reasonable basis for any such claim; and

6

 

(vi) to the knowledge of the General Partner or the Fund, there is no patent or
patent application that contains claims that interfere with the issued or pending
claims of any of the Intellectual Property; and

     (s) all tax returns required to be filed by the General Partner have been filed, and all taxes
and other assessments of a similar nature (whether imposed directly or through withholding)
including any interest, additions to tax or penalties applicable thereto due or claimed to be due
from such entities have been paid; and no tax returns or tax payments are due with respect to the
Fund as of the date of this Agreement;

     (t) the General Partner has not sent or received any communication regarding termination of,
or intent not to renew, any of the contracts or agreements referred to or described in, or filed as
an exhibit to, the Registration Statement, and no such termination or non-renewal has been
threatened by the General Partner or any other party to any such contract or agreement;

     (u) on behalf of the Fund, the General Partner has established and maintains disclosure
controls and procedures (as such term is defined in Rule 13a-14 and 15d-14 under the Exchange Act,
giving effect to the rules and regulations, and SEC staff interpretations (whether or not public),
thereunder)); such disclosure controls and procedures are designed to ensure that material
information relating to the Fund, is made known to the General Partner, and such disclosure
controls and procedures are effective to perform the functions for which they were established; on
behalf of the Fund, the General Partner has been advised of: (i) any significant deficiencies in
the design or operation of internal controls which could adversely affect the Fund’s ability to
record, process, summarize, and report financial data; and (ii) any fraud, whether or not material,
that involves management or other employees who have a role in the Fund’s internal controls; any
material weaknesses in internal controls have been identified for the Fund’s auditors;

     (w) any statistical and market-related data included in the Registration Statement and the
Prospectus are based on or derived from sources that the General Partner believes to be reliable
and accurate, and the General Partner has obtained the written consent to the use of such data from
such sources to the extent required; and

     (x) neither the General Partner, nor any of the General Partner’s directors, members,
officers, affiliates or controlling persons has taken, directly or indirectly, any action designed,
or which has constituted or might reasonably be expected to cause or result in, under the Exchange
Act or otherwise, the stabilization or manipulation of the price of any security or asset of the
Fund to facilitate the sale or resale of the Units.

     For purposes hereof, the term “Registration Statement” shall mean the Registration Statement
as amended or supplemented from time to time to the date hereof, the term “Preliminary Prospectus”
shall mean the preliminary prospectus dated April ___, 2006 relating to the Units and any other
prospectus dated prior to effectiveness of the Registration Statement relating to the Units, and
the term “Prospectus” shall mean the Prospectus as amended or supplemented from time to time to the
date hereof.

7

 

2. Each of the obligations of the General Partner to be performed by it on or before the date
hereof pursuant to the terms of the Agreement, and each of the provisions thereof to be complied
with by the General Partner on or before the date hereof, has been duly performed and complied with
in all material respects. Capitalized terms used, but not defined herein shall have the meanings
assigned to such terms in the Agreement.

IN WITNESS WHEREOF, I have hereunto, on behalf of the General Partner, subscribed my name this ___
day of ________, 2007.

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

I, _______________, in my capacity as [title], hereby certify that _____________ is the duly
elected [title] of the General Partner, and that the signature set forth immediately above is
[his/her] genuine signature.

IN WITNESS WHEREOF, I have hereunto set my hand as of the date first set forth above.

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

8EX-10.2 FORM OF CUSTOMER AGREEMENT

 

EXHIBIT 10.2

CUSTOMER AGREEMENT

In consideration of the acceptance by Fimat USA, LLC (“FIMAT”) of one or more accounts (the
“Account(s)”) of the undersigned (“Customer”), and of FIMAT acting as broker for Customer, the
Customer agrees as follows:

	I.	 	RISKS AND AUTHORITY

	 	A.	 	Risks of Commodity Trading. In addition to the Commodity Futures Trading
Commission (“CFTC”) mandated Risk Disclosure Statement attached hereto, Customer
understands that (i) Customer may be trading in commodity futures contracts, options
on commodity futures contracts, foreign futures contracts and options on foreign
futures contracts (collectively, “Commodity Futures Contracts”), securities and
securities options (collectively, “Securities”), derivative instruments, spot and
forward contracts, physical commodities, cash and other properties and options thereon
(collectively, “Other Account Instruments”) and/or currencies and foreign exchange
contracts and options thereon (“Forex,“and together with Commodity Futures Contracts,
Securities, Other Account Instruments and Forex being herein collectively defined as
“Commodities”), and such trading is highly speculative, (ii) prices are subject to
sharp upward and downward movements, (iii) price fluctuations may result in losses
which substantially exceed the capital in Customer’s Account(s), (iv) on trading days
on which the subject of Customer’s trading reaches its permissible exchange price
limit, trading may cease, as a result of which Customer may be locked into substantial
losses, and (v) in transactions on exchanges on which foreign currency is used, any
profit or loss may be affected by exchange rate fluctuations. Customer is willing and
able, financially and otherwise, to assume the risks of such trading. Customer
recognizes that assurance of profit or freedom from loss is impossible to guaranty.
Customer has received no assurance and will place no orders in reliance on any such
assurance or similar representations. Customer understands that FIMAT may without
notice to Customer exercise any of the remedies listed in Sections III.O and IV hereof
if Customer fails to maintain adequate margin or if any other event of default occurs.
Customer agrees to review carefully each confirmation statement FIMAT sends Customer
and notify FIMAT immediately in accordance with Section III.F hereof.
	 
	 	B.	 	FIMAT’s Authority and Responsibility. Customer authorizes FIMAT to purchase
and sell Commodities, as agent for Customer’s Account(s) in accordance with the oral
or written instructions of Customer or persons authorized in writing to act, or
persons reasonably believed by FIMAT to be acting, on Customer’s behalf. Unless
Customer specifies to the contrary, FIMAT is authorized to execute all orders on any
exchange or other market where such business is conducted which may be deemed by
FIMAT, in its sole discretion, to be appropriate. Customer hereby waives any defense
that any such instruction was not in writing, as may be required by any law, rule or
regulation. FIMAT agrees to provide the services contemplated hereunder in any
commercially reasonable manner.
	 
	 	 	 	Customer authorizes FIMAT or its agents to investigate Customer’s credit standing
and in connection therewith to contact such banks (including, without limitation,
any of FIMAT’s Affiliates, such as Societe Generale), financial institutions and
credit agencies, as FIMAT shall deem appropriate to verify information regarding
Customer. Customer authorizes FIMAT, in its sole discretion, to provide and/or
exchange any financial information with respect to Customer with any of FIMAT’s
Affiliates.
	 
	 	C.	 	Introduced Accounts (Only if applicable). Customer understands that
Customer’s Account(s) with FIMAT was introduced to FIMAT by an Intermediary (as
defined in Section II.F below), and that, except for companies which are members of
the FIMAT Group, the Intermediary is an independent business entity which is not in
any way affiliated with or an agent of FIMAT. Customer hereby authorizes FIMAT to
accept all orders and instructions from its Intermediary and hereby ratifies all
orders and instructions, which

 

 

	 	 	 	FIMAT believes in good faith to have been transmitted by its Intermediary on
Customer’s behalf, which FIMAT is authorized to act upon. If Customer is dealing
with an Intermediary, make all checks payable to, and wire all funds directly to
“Fimat USA, LLC”. FIMAT INTERMEDIARIES DO NOT HANDLE CUSTOMER FUNDS, EXCEPT TO
FORWARD TO FIMAT CHECKS MADE OUT TO FIMAT.

	 	D.	 	Customer Representations and Warranties. Except as disclosed in writing to
FIMAT prior to execution and delivery of this Agreement or in a subsequent written
notice from Customer to FIMAT, Customer represents and warrants as follows: (1)
Customer is not (a) a general partner, officer, director, more than ten percent owner,
correspondent, agent (or person associated with an agent), associated person, or
employee of a futures commission merchant, commodity trading advisor, commodity pool
operator, or an introducing broker, (b) a relative, spouse, or relative of a spouse of
any of the foregoing persons who shares the same home with any such person, (c) a
member of an exchange or a director or employee of an exchange, bank, trust company,
insurance company, or regulatory or self-regulatory organization, or (d) engaged
individually or as an employee in the business of dealing, as broker or principal, in
Commodities other items, documents of title relating to Commodities, bills of
exchange, acceptances, or other forms of commercial paper, and if Customer becomes so
employed or engaged Customer will promptly notify FIMAT in writing; (2) Customer, if
applicable, (a) is duly organized and in good standing under the laws of the
jurisdiction in which it was organized and in all jurisdictions where it is qualified
to do business; (b) has the requisite capacity, power and authority to execute,
deliver and perform its obligations under this Agreement and such Other Agreement,
including without limitation, the granting of any security interests in the Collateral
as contemplated hereby and thereby; (c) none of the execution, delivery or performance
by Customer of its obligations under this Agreement or such Other Agreement conflict
with the provisions of any material contract, agreement or instrument binding upon you
or your properties, or the provisions of any law, statute, rule, regulation or decree,
order or determination of any court of law applicable to Customer; and (d) no consent,
authorization, permit or filing is required in connection with the execution, delivery
and performance by Customer of this Agreement or such Other Agreement, except those
that have been obtained or made and filings necessary to create, perfect and retain
any security interest in, or lien upon, any Collateral for any of Customer’s
obligations to FIMAT; (3) Customer, if an individual, is of sound mind, legal age and
legal competence; (4) no person other than Customer has or will have an interest in
Customer’s Account(s) except as otherwise disclosed in writing to FIMAT; and (5) all
the information provided in the Customer Application is true, correct and complete as
of the date hereof and that Customer will promptly notify FIMAT of any material
changes in such information.
	 
	 	E.	 	Customer is Principal. Unless Customer has advised FIMAT in writing
otherwise prior to execution and delivery of this Agreement, Customer is acting for
Customer’s Account(s) as principal and not as agent in transactions under this
Agreement. Customer will give written notice to FIMAT before granting any person or
entity any interest in Customer’s Account(s) or undertaking to act as agent for any
party with respect to Customer’s Account(s).

	II.	 	DEFINITIONS (As used in the singular or plural)

	 	A.	 	Affiliate. “Affiliate” includes Societe Generale, Fimat International
Banque, SA, Fimat Americas SAS and SG Tandem, Inc. and any of their affiliates or
subsidiaries.
	 
	 	B.	 	Agreed by FIMAT. “Agreed by FIMAT” means an agreement in writing under the
hand of a person whose name and signature at the material time appear on a list of
authorized signatories maintained by FIMAT at its offices. A copy of the list is
available for inspection upon reasonable notice at FIMAT’s offices during usual
business hours.

 

 

	 	C.	 	Applicable Law. “Applicable Law” shall have the meaning set forth in Section
III.A.3 below.
	 
	 	D.	 	Collateral. “Collateral” means all of Customer’s right, title and interest
in and to all goods and other property, including without limitation, Commodities, the
Account(s), inventory, documents, accounts, general intangibles, chattel paper and all
proceeds of such property including but not limited to interest on or profits from the
Account(s). Any property en route to or allocated by any third party to FIMAT and/or
any Affiliate shall be deemed “Collateral” for purposes of this Agreement.
	 
	 	E.	 	Commodity Exchange. “Commodity Exchange” means any exchange, association,
contract market or clearing association, whether incorporated or unincorporated, or
persons who are engaged in the business of buying or selling any commodity or
receiving the same for sale on consignment.
	 
	 	F.	 	Intermediary. “Intermediary” includes an introducing broker, fully disclosed
futures commission merchant, foreign broker, or any other person or entity acting in a
similar capacity.
	 
	 	G.	 	Liability. “Liability” means all Customer’s obligations direct or indirect
to FIMAT or its Affiliates of whatever form and however arising, including any
indebtedness now or hereafter existing under this Agreement or any Other Agreement or
any debit balances in the Account(s).
	 
	 	H.	 	Other Agreement. “Other Agreement” means any and all agreements, documents
and instruments (including, without limitation, promissory note(s), security
agreement(s), pledge agreement(s) and guaranty(s)) executed by or on behalf of
Customer in favor of FIMAT and/or an Affiliate, as such agreements, documents and
instruments may be amended, supplemented or otherwise modified from time to time in
accordance with their respective terms.

	III.	 	TERMS OF TRANSACTIONS

	 	A.	 	Applicable Rules and Terms. The Account(s) and all transactions and
agreements in respect of the Account(s) shall be subject to:

	 	1.	 	the terms of this Agreement and any other terms Agreed by
FIMAT and Customer;
	 
	 	2.	 	FIMAT’s terms from time to time in effect with respect to the
specific type of transaction and the terms of FIMAT’s confirmation of the
transaction, except to the extent specifically inconsistent with Subsection
III.A.1 above;
	 
	 	3.	 	the regulations of all applicable Federal, state and
self-regulatory agencies or authorities, including but not limited to: (i)
the provisions of the Commodity Exchange Act, as amended, and any rules,
regulations, orders and interpretations promulgated thereunder by the CFTC;
and (ii) the constitution, by-laws, rules, regulations, orders and
interpretations of the Commodity Exchange (and its clearing house, if any) on
which such transactions are executed and cleared, and any relevant registered
futures association, including, without limitation, the National Futures
Association (“NFA”), except to the extent Subsections III.A.1 or

 

 

	 	 	 	III.A.2 above provide more specific restrictions. All such provisions,
rules, regulations, orders, interpretations, constitution, by-laws, custom
and usage are hereinafter collectively referred to as “Applicable Law;”
and

	 	4.	 	customary practice in the trade, except to the extent
specifically inconsistent with Subsections III.A.1, III.A.2, or III.A.3 above.

	 	B.	 	Margin. Customer will pay to FIMAT (and only to FIMAT) all amounts FIMAT
requires as margin or to satisfy any other of Customer’s obligations under this
Agreement in U.S. Dollars in immediately available funds, unless otherwise agreed, as
FIMAT requires. FIMAT at any time may change the margin requirements with respect to
Customer’s Account(s) for existing positions as well as for new positions. The
required margin may exceed the margin required by the Commodity Exchange (and its
clearing house, if any) on which trades are cleared on behalf of Customer.
	 
	 	 	 	FIMAT has no obligation to notify Customer of any insufficiency of margin in
Customer’s Account(s) prior to exercising rights and remedies under Section IV of
this Agreement.
	 
	 	C.	 	Fees and Commissions. Customer will pay the fees and commissions FIMAT
charges from time to time. FIMAT may share its fees, commissions and amounts accruing
on Customer’s Account(s) with persons that introduce Customer to FIMAT or provide
other services to FIMAT.
	 
	 	D.	 	Interest. If Customer fails to pay FIMAT in immediately available funds any
sum when due, then unless otherwise provided in any Other Agreement, Customer will pay
interest to FIMAT on the unpaid sum, while outstanding, at the lesser of (i) the
maximum legal rate or (ii) 150% of the publicly announced prime lending rate of
Societe Generale New York Branch as in effect from time to time while the unpaid sum
is outstanding, compounded monthly. Customer acknowledges that FIMAT may receive and
retain as its own any increment or interest accruing from any of the funds FIMAT
receives from Customer.
	 
	 	E.	 	No Standard Requirement. FIMAT has no obligation to impose uniform margin
requirements, to publish details of fees or commissions, or to charge uniform fees,
commissions or interest rates.
	 
	 	F.	 	Confirmations and Statements. FIMAT will promptly confirm in writing all
transactions undertaken for Customer’s Account(s). Customer shall timely review all
confirmations received from FIMAT to check that the description of the transactions is
accurate and that no transaction is omitted. Customer is conclusively bound by
FIMAT’s confirmations and statements of Customer’s Account(s) if Customer does not
object in writing before the earlier of ten days following transmission to Customer or
by market opening on the day following Customer’s actual receipt of such confirmation
statements. With respect to transactions, which Customer authorizes but for which no
confirmation is received, Customer shall be deemed to have waived all objections
unless FIMAT has received Customer’s written request for a copy of the confirmation
within five days of the transaction date. Customer understands that Customer should
direct inquiries to FIMAT at 630 Fifth Avenue, Suite 500, New York, New York 10111,
Attention: Compliance Department, or such other address as FIMAT may hereafter
provide Customer. For the reporting of any alleged unauthorized trades or other trade
improprieties, FIMAT authorizes and will accept “collect” telephone calls to the
Compliance Department at (212) 504-7446. FIMAT is not bound by prices or transactions
reported in error on confirmations and statements of Customer’s Account(s).
	 
	 	 	 	Customer hereby authorizes FIMAT to transmit to it all confirmation and other
statements of account activity, funds and positions by facsimile transmission or
through

 

 

	 	 	 	the Internet to such address as Customer designates on the Customer Application, or
as Customer designates from time in a writing addressed to the Compliance
Department, as set forth in this paragraph. FIMAT reserves the right to assess its
standard charge from time to time in effect for confirmation and other statements
of account activity, funds and positions provided to customer through any other
medium, as well as for duplicate statements of any kind. This authorization shall
be perpetual, unless revoked in writing by Customer in a writing addressed to the
Compliance Department, as set forth in this paragraph.

	 	G.	 	Capacity of FIMAT; Floor Brokers and Others; Indemnification. FIMAT will
execute Customer’s transactions solely as agent of Customer. In executing
transactions on a Commodity Exchange, FIMAT may utilize floor brokers (who may be
employees or other agents of FIMAT), and will be responsible for reasonable care in
the selection of such brokers, but will not be responsible to Customer for negligence
or misconduct of an independent floor broker if, at the time the floor broker was
selected, the floor broker was authorized to act as such under the rules of the
relevant Commodity Exchange and the appropriate regulatory agency. FIMAT will not be
responsible to Customer in the event of error, failure, negligence, or misconduct on
the part of any Intermediary, commodity trading advisor, or other person acting on
Customer’s behalf and, without limiting the foregoing, FIMAT has no obligation to
investigate the facts surrounding any transaction in Customer’s Account(s) which is
introduced by such Intermediary, commodity trading advisor, or other person. Customer
will indemnify FIMAT and hold it harmless from and against any and all liabilities,
penalties, losses, and expenses, including legal expenses, incurred by FIMAT as a
result of any error, failure, negligence, or misconduct on the part of any such
Intermediary, commodity trading advisor, or other person acting on Customer’s behalf.
FIMAT shall not be responsible for any loss or damage caused, directly or indirectly,
from any delays or inaccuracies in the transmission of orders, including but not
limited to our automated order routing systems, or other information due to a
breakdown in or failure of any transmission or communication facilities for any reason
including those reasons described in Section V.D. hereof. FIMAT shall only be liable
for actions or inactions by FIMAT which amount to gross negligence or fraud. Customer
also agrees that FIMAT shall not be liable to Customer for any losses, costs,
expenses, or other damages sustained by Customer in the event of any failure or delay
by any exchange, market, clearing house, bank or other depository institution where
any of Customer’s funds or other assets are maintained, or a failure or delay by any
member, bank or agent of any of the foregoing, or a failure or delay by any of the
foregoing to enforce its rules, to fulfill its obligations, or to make any payment,
for any reason whatsoever. Customer waives any claim, cause of action or right as
against FIMAT, its employees or agents which may arise or occur as a result thereof.
	 
	 	H.	 	Transaction Limits; Acceptance of Orders. FIMAT, solely for its own benefit
and the benefit of other customers, may limit the number of transactions FIMAT
executes, and the open positions FIMAT maintains or acquires, for Customer. Customer,
acting alone or in concert with others, will not make any trade through FIMAT which
would have the effect of exceeding the lower of limits imposed by FIMAT, the Commodity
Exchange on which the transactions are executed, or any regulatory agency. If
Customer exceeds its limit, FIMAT may require the transfer of Customer’s positions to
another firm, or FIMAT may liquidate some or all of the Customer’s positions as FIMAT
elects in its sole discretion. Customer agrees to promptly advise FIMAT if Customer
is required to file reports of its positions to the CFTC or any Commodity Exchange.
	 
	 	I.	 	Liquidation of Offsetting Positions. FIMAT shall liquidate any contract for
which an offsetting order is entered by Customer on a first in, first out (“FIFO”)
basis, unless Customer instructs FIMAT not to liquidate such contract and to maintain
the offsetting contracts as open positions; provided, that FIMAT shall not be
obligated to comply with any such instructions given by Customer if Customer fails to
provide FIMAT with any

 

 

	 	 	 	representations, documentation or information reasonably requested by FIMAT or if
in FIMAT’s reasonable judgment, any failure to liquidate such offsetting contracts
against each other on a FIFO basis would result in a violation of Applicable Law.

	 	J.	 	Separate Accounts. Pursuant to CFTC Rule 1.46(e)(1), if FIMAT maintains or
directs the trading for more than one account for Customer then, if held open,
offsetting long and short positions in the separate accounts may result in the
charging of additional fees and commissions and the payment of additional margin,
although offsetting positions will result in no additional market gain or loss.
	 
	 	K.	 	Failure of Delivery. At least five business days prior to the earlier of
first notice or last trading day of the delivery month, Customer must advise FIMAT
whether Customer intends to take or make delivery, as the case may be, of items
purchased and sold by FIMAT at Customer’s direction, and, if delivery is intended,
Customer must demonstrate to FIMAT’s satisfaction Customer’s ability to perform
Customer’s delivery obligations, in any manner required by FIMAT including, without
limitation, by depositing with FIMAT the funds or documents necessary for delivery.
If Customer fails to so advise FIMAT or to demonstrate satisfactorily Customer’s
ability to perform, then without notice or demand to Customer, FIMAT may, but shall
have no duty to, liquidate such positions on terms FIMAT deems reasonable, or take any
other action FIMAT deems reasonable, including taking or making delivery as the case
may be. If Customer fails to supply FIMAT, in a timely manner, with any item FIMAT
has sold at Customer’s direction, FIMAT may borrow or purchase the item from any
party, including an Affiliate, to make the delivery. FIMAT has no duty to borrow or
purchase the item. Customer shall comply fully with Applicable Law relating to taking
or making any delivery, and shall, if taking delivery, take all steps as provided
thereunder to ensure that all items to be delivered are in compliance with Applicable
Law. Customer will hold harmless and indemnify FIMAT for all liabilities, penalties,
losses, and expenses, including any legal expenses and any penalties imposed by any
Commodity Exchange, FIMAT incurs or reasonably anticipates incurring if Customer fails
timely (1) to take good delivery of any item FIMAT has purchased at Customer’s
direction, (2) to supply FIMAT with or otherwise make good delivery of any item FIMAT
has sold at Customer’s direction, or otherwise, in connection with a delivery, or (3)
to comply with Applicable Law, and FIMAT may in the event of any such failure,
apparent failure, or otherwise withhold from Customer’s Account(s) with FIMAT or any
Affiliates the amount (however denominated) estimated by FIMAT as sufficient to
satisfy the above indemnity, for application as FIMAT deems appropriate.
	 
	 	L.	 	Forwarding and Storage of Material. If FIMAT on Customer’s behalf arranges
for packaging, shipping, storage, or insurance, FIMAT’s only liability will be for
gross negligence or willful misconduct in the making of the arrangements.
	 
	 	M.	 	Reimbursement for Taxes, Etc. Customer will indemnify FIMAT for all taxes,
levies, imposts, duties, charges, and fees (including legal expenses) incurred in
connection with any sale, purchase, forwarding or storage.
	 
	 	N.	 	Payment. Customer’s payments must be in freely transferable and immediately
available funds to FIMAT’s account at a bank designated by FIMAT and without deduction
for any taxes, imposts, duties, charges, or fees and free and clear of any
withholding, restrictions, or conditions of any nature when received by FIMAT.
Payments may not be effected by the delivery of bank notes or other legal tender
unless Agreed by FIMAT. FIMAT may withhold any delivery until it receives payment in
the foregoing manner.
	 
	 	O.	 	Closeout. Whenever FIMAT, in its sole discretion, considers it necessary for
Customer’s protection or for FIMAT’s protection, FIMAT may, but is not obligated to,
refuse to accept new positions and/or close out or otherwise liquidate Customer’s
positions, and Customer will be liable for any deficiency in Customer’s Account(s)
that may result therefrom.

 

 

	 	P.	 	Options Exercise. Customer agrees that if Customer has a commodity option
position with FIMAT and does not provide timely instructions regarding the exercise of
a commodity option on the last day of trading in that option, FIMAT, in its sole
discretion and without prior notice to Customer, is authorized to exercise or abandon
(i.e., let expire) the option. Customer further agrees that any exercise or
abandonment of an option by FIMAT pursuant to this Agreement shall be for Customer’s
sole account and risk and FIMAT shall have no liability with respect thereto, and
FIMAT shall have no duty to exercise such authority. Customer further agrees that,
without FIMAT’s written consent, Customer may not, on any day, exercise more than 20
options contracts with FIMAT unless Customer has margin with FIMAT in excess of the
amount of margin FIMAT requires for the futures contracts Customer would be assigned
as a result of such exercise.
	 
	 	 	 	Customer acknowledges that FIMAT’s confirmation of purchase and sale statements
will reflect option expiration dates that FIMAT obtains from sources generally
believed to be reliable, and FIMAT will be responsible only for gross negligence,
willful misconduct or fraud in connection therewith. If Customer holds options
with a Friday expiration date, it is possible that, if a grantor, Customer could be
assigned a futures position after the expiration of the option on Friday, and on
some exchanges, as late as Saturday morning.
	 
	 	Q.	 	Adjustments. On rare occasion FIMAT may, in error, not fill Customer’s order
or fill Customer’s order at a price which is less favorable than the price which could
have been obtained if the error had not occurred. In these circumstances, FIMAT will
give Customer the filled order and cash adjust Customer’s Account(s) so as to reflect
the price at which the order could have been executed had the error not occurred.
Customer agrees however that, if when correcting its error, FIMAT obtains a position
at a better price than Customer’s order could have been filled at, Customer will only
receive the fill Customer could have obtained if Customer’s orders had been executed
without error (and FIMAT will receive any difference).
	 
	 	R.	 	Exchange of Physical for Futures Transaction. Customer agrees to create,
retain, and produce, upon request of a Commodity Exchange, the CFTC, or the United
States Department of Justice, documentation of cash transactions underlying exchanges
of futures for cash commodities or exchanges of futures in connection with cash
commodity transactions in accordance with Applicable Law. Documentation means those
documents customarily generated in accordance with cash market practices and/or
required by the relevant Commodity Exchange or regulatory authority which demonstrate
the existence and nature of the underlying cash transactions, including, but not
limited to, contracts, confirmation statements, telex printouts, invoices, and
warehouse receipts or other documents of title.
	 
	 	S.	 	Direct Order Transmittal Client Disclosure. On occasion, when FIMAT’s
offices are closed, Customer may request that FIMAT grant it authority to place orders
directly with one or more of FIMAT’s non-U.S. Affiliates for execution on non-U.S.
exchanges, or for transactions on U.S. exchanges to be executed on GLOBEX, NYMEX
ACCESS or other electronic trading systems. If FIMAT grants Customer such authority,
the following conditions shall apply: (1) the order(s) Customer places with FIMAT’s
non-U.S. Affiliate will be for FIMAT’s omnibus account maintained directly or
indirectly with FIMAT’s non-U.S. Affiliate; (2) Customer will be a client of FIMAT and
not of the non-U.S. Affiliate; (3) all monies, securities and property of Customer
will be maintained by FIMAT; and (4) unless Customer objects within five days after
receipt of this Agreement, FIMAT may assume Customer consents to these conditions.

	IV.	 	SECURITY AGREEMENT AND DEFAULT PROVISIONS

 

 

	 	A.	 	Security Interest. Customer hereby grants FIMAT a security interest in the
Collateral and proceeds thereof, as security for the prompt payment and performance of
any and all Liabilities.
	 
	 	B.	 	FIMAT’s Rights Respecting Collateral. Customer will sign and deliver all
agreements, instruments, certificates and documents FIMAT requests to create, perfect,
preserve and protect the security interest in any of the Collateral, accompanied by
such instruments of assignment and transfer and in such form as FIMAT shall reasonably
request. Customer appoints FIMAT as Customer’s agent to sign, deliver, complete and
file any such agreements, instruments, certificates and documents on Customer’s
behalf. FIMAT has no obligation to return an identical item of Collateral, but only
to replace the item with property of like kind and substantially similar quantity,
subject to adjustment for quantity variations at then prevailing market prices. FIMAT
may, at any time and without limitations except those imposed by law, pledge,
re-pledge, hypothecate, loan or invest any Collateral without notice to Customer or
the obligation to account to Customer for any interest, income, or other benefit from
any of the Collateral. Customer agrees to permit FIMAT and/or its agents and
representatives at any time to inspect any of the Collateral and make abstracts or
copies from any of Customer’s books and records pertaining to the Collateral. The
right is expressly granted to FIMAT, in its sole discretion, to notify warehousemen,
consignees, bailees or any other persons in possession of Collateral of FIMAT’s
security interest therein. Unless Agreed by FIMAT, the undersigned will not file or
authorize or permit to be filed in any jurisdiction any such financing or like
statement in which FIMAT is not named as the sole secured party. Upon the request of
FIMAT, Customer shall, at Customer’s expense, keep insured all Collateral which is
tangible property for full value, with such coverage as FIMAT may approve, and the
policies shall be duly endorsed in FIMAT’s favor and delivered to FIMAT.
	 
	 	C.	 	Events of Default. In addition to any “Event of Default” which may be
defined in any Other Agreement, and not by way of limitation of any right FIMAT
otherwise has to demand payment at any time of any of the Liabilities, the following
events shall constitute an “Event of Default”: (1) Customer breaches, repudiates, or
defaults in any way on any agreement with FIMAT or any Affiliate (including Customer’s
agreement to provide margin) or with any third party; or (2) FIMAT, in its sole
discretion, determines that it has sufficient grounds for insecurity with respect to
Customer’s performance of any obligation to any person and Customer fails to provide
assurance of performance of the obligation satisfactory to FIMAT; or (3) any
proceeding is commenced by or against Customer under any bankruptcy, insolvency,
relief of debtor, or similar law, or Customer makes an assignment for the benefit of
creditors, a receiver, trustee, conservator, liquidator or similar officer is
appointed for Customer or any of Customer’s property; or (4) Customer’s Account(s) are
attached or levied against; or (5) any of Customer’s representations to FIMAT or any
Affiliate, whenever or wherever made, were misleading when made or deemed made or
later becomes untrue; or (6) Customer dies, is disabled or becomes legally
incompetent; or (7) Customer or any organization of which Customer is a member
suspends or threatens to suspend the transaction of its usual business, or any
proceeding is commenced with respect to any of Customer’s property or any such
organization; or (8) Customer is a party to any merger, consolidation or sale of all
or substantially all of its assets unless Agreed by FIMAT prior thereto; or (9) FIMAT
has reason to believe that any of the foregoing is likely to occur imminently.
	 
	 	D.	 	FIMAT’s Remedies Upon Default.

	 	1.	 	Customer absolutely and unconditionally agrees that upon the
occurrence of an Event of Default, FIMAT, on behalf of itself and as agent for
any Affiliate, may exercise any one or more of the following remedies (except
that, upon the occurrence of any Event of Default set forth in Section
IV.C.(3) above, the remedies specified in subparagraphs a, b, c, and g below
shall thereupon be

 

 

	 	 	 	deemed for all purposes to have been exercised, immediately and without
action by FIMAT), with only such notice as is required by Applicable Law
and cannot be waived, without prejudice to any other remedies:

	 	a.	 	FIMAT, on its own behalf and/or on behalf
of any of its Affiliates, may terminate any or all of FIMAT’s and/or
any Affiliates obligations to Customer for future performance;
	 
	 	b.	 	FIMAT, on its own behalf and/or on behalf
of any of its Affiliates, may treat any or all of Customer’s
Liabilities and/or Customer’s obligations to any Affiliates,
including credit or debit balances, as immediately due, and may treat
all limits, margin facilities and call tolerance facilities in place
as revoked;
	 
	 	c.	 	FIMAT, on its own behalf and/or on behalf
of any of its Affiliates, may consolidate Customer’s Account(s) or
any of them at FIMAT and/or any Affiliates;
	 
	 	d.	 	FIMAT, on its own behalf and/or on behalf
of any of its Affiliates, may sell any or all non-cash Collateral
held long by FIMAT and/or any Affiliates;
	 
	 	e.	 	FIMAT, on its own behalf and/or on behalf
of any of its Affiliates, may close out or hedge for Customer’s
Account(s) any or all open positions in Customer’s Account(s) at
FIMAT and/or any Affiliates pursuant to Section III.O above or
otherwise, in any manner it deems reasonable under the circumstances;
	 
	 	f.	 	FIMAT, on its own behalf and/or on behalf
of any of its Affiliates, may borrow, lend, sell or buy from any
party, including itself and/or any Affiliates, any property necessary
to cover or hedge any or all positions in Customer’s Account(s) at
FIMAT and/or any Affiliates; and
	 
	 	g.	 	FIMAT, on its own behalf and/or on behalf
of any of its Affiliates, may offset the proceeds of the sale of
non-cash Collateral, cash Collateral, and sums owing Customer by
FIMAT and/or Affiliates (including any sums arising from the
operation of this Section D), against Customer’s Liabilities and
Customer’s obligations to any Affiliates, without prejudice to
FIMAT’s right to recover the balance of Customer’s Liabilities and
any Affiliates’ right to recover the balance of Customer’s
obligations to them.

	 	 	 	Customer appoints FIMAT as Customer’s agent to sign, complete, and deliver
any and all documents necessary or desirable to carry out the foregoing.
None of FIMAT nor any of its Affiliates, nor any of its agents or
representatives will be responsible for losses or lost profits, accrued or
anticipated, resulting from any position or transaction entered to enforce
the foregoing remedies. Customer waives the right of set off in any action
brought by FIMAT to collect amounts owned by Customer to FIMAT.
	 
	 	 	 	Customer will indemnify and hold harmless FIMAT and its Affiliates, and
their respective agents and representatives from any liabilities,
penalties, losses, costs and expenses, including but not limited to
reasonable attorney fees (whether the reasonable fees and charges of
external legal counsel and/or the costs and charges, if any, allocated by
internal legal department), which FIMAT and/or any Affiliates incur in
connection with (i) the exercise of any remedy hereunder or under any
Other Agreement, (ii) the care or custody of the Collateral and defending
or

 

 

	 	 	 	asserting the rights and claims of FIMAT and/or any Affiliates in respect
thereof, and (iii) meeting any obligation of FIMAT and/or any Affiliates
which would otherwise fail to be performed by reason of an Event of
Default.

	V.	 	MISCELLANEOUS

	 	A.	 	Governing Law and Submission to Jurisdiction.
	 
	 	 	 	All disputes between FIMAT and Customer including, but not limited to, disputes
arising directly or indirectly as a result of, or the relationship established as a
result of, this Agreement, shall be governed by the substantive laws of the State
of New York, without regard to principles of choice of law. Notwithstanding any
provision of Applicable Law, Customer agrees to commence all actions of any kind
against FIMAT within one year of the event giving rise to any dispute. Customer
irrevocably submits to the jurisdiction of the courts of New York and of the
Federal Courts of the Southern District of New York with respect to litigation
relating to all such disputes, including, but not limited to, disputes arising
directly or indirectly as a result of or the relationship established as a result
of this Agreement and transactions subject to this Agreement, agrees to commence
actions and proceedings and assert claims for relief involving them only in such
courts (unless Customer has otherwise agreed to arbitrate all disputes against
FIMAT, in which case such arbitration shall be held only in New York City), and
consents to service of process by the mailing of copies to Customer by certified
mail to Customer’s address as it appears on the books of FIMAT. Such service shall
be effective ten days after mailing.
	 
	 	B.	 	Waiver of Jury Trial. CUSTOMER HEREBY WAIVES TRIAL BY JURY IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO, BUT NOT LIMITED TO, DISPUTES ARISING
DIRECTLY OR INDIRECTLY AS A RESULT OF, OR THE RELATIONSHIP ESTABLISHED AS A RESULT OF,
THIS AGREEMENT OR ANY TRANSACTION IN CONNECTION THEREWITH. CUSTOMER’S WAIVER OF TRIAL
BY JURY IS A PREREQUISITE TO, AND INDUCEMENT OF FIMAT TO OFFER, THE OPENING OF
CUSTOMER’S ACCOUNT(S).
	 
	 	C.	 	Applicable Law and Notes for German Clients. Contrary to German Law, the
substantive law of New York does not distinguish between binding and non-binding
terminal (futures) transactions (see paragraph 53 of the German Börsengesetz). All
trades under this Agreement are therefore binding market transactions. Customer
acknowledges that under German Law futures trading gives rise to an imperfect
obligation (as provided in paragraphs 762 and 764 of the Burgerliches Gesetzbuch
(“BGB”) and paragraph 58 of the German Börsengesetz). Customer also acknowledges that
under paragraph 814 of the BGB disclosure of this fact removes any and all rights
Customer might otherwise have as a result of the “Differenzeinwand” (paragraph 812 of
the BGB). Customer credit balance held by FIMAT will be applied to fulfill, discharge
and perform the transaction(s) and as an advance performance or down payment to cover
any transaction(s) trading costs.
	 
	 	D.	 	Force Majeure; Warranty and Disclaimer of Warranties. FIMAT shall not be
liable for any delay in performance or for non-performance of its obligations caused
by any event beyond the reasonable control of FIMAT. FIMAT may, without liability,
cancel this Agreement or any particular transaction contemplated hereunder if its
performance is delayed or rendered impossible due to any such event. FIMAT’s sole
warranty is that any commodity delivered by it will conform to the description on any
confirmation prepared and delivered by FIMAT with respect thereto. FIMAT EXPRESSLY
DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED.
	 
	 	E.	 	Non-Waiver; Non-Assignment; Time of the Essence. This Agreement and the
Other Agreements, if any, constitute the entire Agreement between FIMAT and Customer
with

 

 

	 	 	 	respect to the subject matter hereof and supersede all other understandings,
agreements, or communications concerning such subject matter. Any oral
representations, warranties, inducements, or agreements made by any representative
of FIMAT inconsistent with the provisions of this Agreement are excluded and will
not bind FIMAT. FIMAT will be bound by waivers and modifications of any of the
terms of this Agreement, any other written agreement, or any transaction, or any
attempted assignment by Customer of any right or interest in this Agreement, any
other agreement, or any transaction, only if Agreed by FIMAT (as defined). Such
agreement will bind FIMAT only in relation to the waiver, modification, or
assignment, to which FIMAT has consented in writing. Customer hereby waives the
right to claim estoppel or forbearance unless Agreed by FIMAT. Any agreement by
FIMAT to forbear liquidation, pursuant to any of its rights and remedies hereunder,
may be revoked by FIMAT upon 24 hours notice to Customer (unless a shorter time is
commercially reasonable under the circumstances), which notice Customer hereby
deems reasonable. FIMAT’s failure to exercise any right or remedy is not a waiver
of the right or remedy not exercised or any other right or remedy. Time is of the
essence in the performance of Customer’s obligations.

	 	F.	 	Binding Effect. This Agreement covers all of Customer’s Account(s) with
FIMAT, is binding on Customer and Customer’s estate, legal representatives, successors
and assigns and inures to the benefit of FIMAT and its successors and assigns.
	 
	 	G.	 	Communications. Communications may be sent to Customer by mail, telex,
telegraph, facsimile transmission, messenger, or other reasonable means at its current
address shown on FIMAT’s records, and are deemed received when Customer actually
receives them or 24 hours after they are sent, whichever first occurs. FIMAT, in its
sole discretion, may record, on tape or otherwise, any telephone conversation between
FIMAT and Customer involving their respective officers, agents and employees.
Customer hereby agrees and consents to such recording, with or without the use of an
automatic tone warning device, and waives any right Customer may have to object to the
use or admissibility into evidence of such recording in any legal proceeding between
Customer and FIMAT or in any other proceeding to which FIMAT is a party or in which
FIMAT’s records are subpoenaed. Customer acknowledges that FIMAT may erase such
recordings after a reasonable period of time. FIMAT shall be entitled to rely on any
instructions, notices and communications, whether oral or in writing, that it believes
to be that of an individual authorized to act on behalf of Customer as authorized to
act on its behalf, and Customer shall be bound thereby. Customer hereby waives any
defense that any such instruction was not in writing as may be required by the Statute
of Frauds or any other similar law, rule or regulation. Customer will indemnify FIMAT
and hold FIMAT harmless from and against all liabilities, penalties, losses, and
expenses, including legal expenses, incurred by FIMAT as a result of FIMAT’s acting
upon such instructions.
	 
	 	H.	 	Non-Execution. Any failure by Customer to duly sign this Agreement is not a
waiver by FIMAT of any rights it otherwise has against Customer.
	 
	 	I.	 	FIMAT Has No Responsibility for Advice. FIMAT is not acting as fiduciary,
foundation manager, commodity pool operator, commodity trading advisor or investment
adviser in respect of any Account(s) opened by Customer and FIMAT shall have no
responsibility hereunder for compliance with any law or regulation governing the
conduct of fiduciaries, foundation managers, commodity pool operators, commodity
trading advisors or investment advisers. Customer will not enter into any transaction
with FIMAT, and will not hold FIMAT responsible for losses, as a result of any
prediction, recommendation, or representation made by any representative of FIMAT.
Any information or advice communicated by FIMAT, although based upon information from
sources FIMAT believes to be reliable, may be incomplete or inaccurate, may not be
verified, and may be changed without notice to Customer. FIMAT makes no
representation as to the accuracy,

 

 

	 	 	 	completeness, reliability or prudence of any such information or advice or as to
the tax consequences of Customer’s futures or options trading.

	 	J.	 	Appointment of Agent. Customer’s appointment of an agent on the “Trading and
Fee Payment Authorization Limited to Purchases and Sales of Commodities” form
(“Trading Authorization”), if applicable, is notice to FIMAT that the person so
designated (the “Agent”) is Customer’s agent in respect of Customer’s Account(s) with
FIMAT, with complete authority on Customer’s behalf to place orders for purchases and
sales, including short sales, for cash or on margin, of Commodities other items in
respect of which Customer may from time to time enter into transactions in one or more
of Customer’s Account(s) with FIMAT, for immediate or future delivery, to effect
delivery and performance of the orders and of the obligations undertaken in connection
with the orders, to borrow funds from FIMAT to finance any of the transactions, to
lend or pledge Customer’s properties with FIMAT and otherwise to secure Customer’s
Liabilities, withdraw or direct the payment of monies, securities, commodities, or
other property from Customer’s Account(s) with FIMAT, including to compensate Agent
for its services, to settle Customer disputes with FIMAT or between Customer or any
other party with whom FIMAT deals for Customer or with whom Customer deals through
FIMAT as broker for the third party, and to sign and deliver on Customer’s behalf
notices and other documents and to take all other actions necessary or desirable to
carry out the terms of this Agreement. Customer agrees to notify FIMAT promptly in
writing of the revocation or modification of the Agent’s authority. Customer will
indemnify FIMAT and hold FIMAT harmless from and against all liabilities, penalties,
losses, and expenses, including legal expenses, incurred by FIMAT in acting as
instructed by the Agent and in continuing to act in reliance on the Trading
Authorization after revocation or modification but prior to FIMAT’s receipt of written
notice thereof.
	 
	 	K.	 	Termination. Customer may terminate this Agreement, at any time when
Customer has no Liabilities and no open positions which could give rise to subsequent
Liabilities, upon the actual receipt by FIMAT of written notice of termination. FIMAT
may terminate this Agreement at any time upon mailing or delivery of written notice of
termination to Customer, provided that any such termination will not affect any
transactions theretofore entered into and will not relieve either party of any
obligations in connection with any debt or credit balance or other liability or
obligation incurred prior to the termination.
	 
	 	L.	 	Multiple Parties. If any Account(s) established pursuant to this Agreement
is on behalf of more than one person:

	 	1.	 	each signing person is jointly and severally liable for the
full and timely performance of all the obligations of all signing persons in
connection with this Agreement and any account established and any transaction
effected under this Agreement; and the terms hereof shall survive the legal
incompetence or death of any or all signing persons;
	 
	 	2.	 	in connection with any Account(s) established under this
Agreement, FIMAT may act upon any order, request or instruction from any one
signing person without the necessity of confirmation from any other;
	 
	 	3.	 	the delivery of any report, statement, notice or other
communication to any one signing person is deemed to have been to all of the
signing persons;
	 
	 	4.	 	FIMAT may deliver any Collateral of any of the signing
persons to any one or more of the signing persons, and make payments from any
Account(s) established pursuant to this Agreement to or upon the order or
direction of any one of them, and FIMAT is under no obligation to inquire into
the purpose of any request for

 

 

	 	 	 	the delivery of any such Collateral or the making of any such payment, or
to see to the disposition or application thereof; and

	 	5.	 	unless FIMAT is advised otherwise in writing, the interest of
the signing persons in any Account(s) established under this Agreement shall
be deemed to be a joint tenancy with rights of survivorship and not a tenancy
in common.

	 	M.	 	Severability. If any provision of this Agreement, or the application of such
provision to any person or circumstances, is held invalid, the remainder of this
Agreement, and the application of such provision to persons or circumstances other
than those as to which it is held invalid, shall not be affected thereby.
	 
	 	N.	 	Captions. Captions used in this Agreement are used for convenience and
neither form an integral part of this Agreement nor limit the applicability or affect
the meaning of any of the Agreement’s provisions.

	VI.	 	ELECTRONIC TRADING SYSTEMS
	 
	 	 	FIMAT may make available to Customer the ability to trade, directly
or indirectly (in whole or in part), through electronic trading
systems (ETS) such as GLOBEX or ACCESS or other electronic systems.
The sponsoring organizations or such systems may make certain
information available and in some cases require special disclosures
for these systems. To the extent these disclosures are required and
other information is available, it has been set forth in the
accompanying booklet entitled “Exchange Disclosures and Notices,”
which Customer acknowledges receiving by signing below.

	VII.	 	ACCEPTANCE OF AGREEMENT
	 
	 	 	This Agreement shall not be deemed to be accepted by FIMAT or become
a binding contract between Customer and FIMAT until approved by a
duly authorized officer of FIMAT in writing in accordance with its
internal procedures. Customer represents, unless Customer has
executed the Joint Tenants Agreement; the Partnership Authorization;
the Certificate of Corporate Resolution; or the Trust Authorization,
that this is an individual account and no one else has an interest
in this account and Customer has authority and capacity to enter
into this Agreement.

	VIII.	 	OTHER AGREEMENTS AMONG THE PARTIES; CONFLICTS
	 
	 	 	Customer acknowledges that in addition to this Agreement, FIMAT may
request that Customer and/or any Affiliate of Customer to execute
and deliver such agreement(s), instrument(s) and document(s) as
FIMAT may prescribe, which agreement(s), instrument(s) and documents
upon their execution, shall become an Other Agreement. In the event
of a conflict between the provisions of this Agreement and the
provisions of any Other Agreement, the provisions of this Agreement
shall govern to the extent the underlying transactions relate to
futures contracts or options thereon.

 

 

	IX.	 	FOR HEDGE CUSTOMERS ONLY
	 
	 	 	CUSTOMER WARRANTS, BY INITIALLING IN A BOX BELOW, THAT IT WILL
ENGAGE IN BONA FIDE HEDGING TRANSACTIONS PURSUANT TO CFTC
REGULATION 1.3(z). IN THE EVENT OF BANKRUPTCY, CUSTOMER PREFERS
THAT THE TRUSTEE (PLEASE INITIAL CHOICE)

	 	 	 	 	 	 	 	 	 	 	 
	LIQUIDATE
	 	  	 	 
LIQUIDATE
 	 	  	 	NOT	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

OPEN COMMODITY CONTRACTS IN CUSTOMER’S HEDGE ACCOUNT WITHOUT SEEKING ITS INSTRUCTIONS.

PLEASE ACKNOWLEDGE YOUR AGREEMENT AND CONSENT TO THIS CUSTOMER AGREEMENT BY SIGNING BELOW.

BY SIGNING BELOW, CUSTOMER ALSO ACKNOWLEDGES THAT CUSTOMER HAS RECEIVED AND UNDERSTANDS THE
FOLLOWING ATTACHED DISCLOSURE STATEMENT PRESCRIBED BY THE CFTC:

Please initial if received and understood:

	 	 	 	 	 	 	 
	 	 	 	 	Risk Disclosure Statement

for Futures and Options

Attached at pg. 1

ACCOUNT NAME: _____________________________

	 	 	 	 	 	 	 
	BY:

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	Authorized Signature
	 	Date
	 	Name (Please Print)
	 
	 	 	 	 	 	 
	BY:

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	Authorized Signature
	 	Date
	 	Name (Please Print)

 

Merrill Lynch, Pierce, Fenner & Smith, Inc

One South Wacker Drive, Suite 300, Chicago, Illinois 60606

 

Tel: 312-442-5448

 

 

RISK DISCLOSURE STATEMENT FOR FUTURES AND OPTIONS

     This brief statement does not disclose all of the risks and other significant aspects of
trading in futures and options. In light of the risks, you should undertake such transactions only
if you understand the nature of the contracts (and contractual relationships) into which you are
entering and the extent of your exposure to risk. Trading in futures and options is not suitable
for many members of the public. You should carefully consider whether trading is appropriate for
you in light of your experience, objectives, financial resources and other relevant circumstances.

Futures

1. Effect of ‘Leverage’ or ‘Gearing’

     Transactions in futures carry a high degree of risk. The amount of initial margin is small
relative to the value of the futures contract so that transactions are ‘leveraged’ or ‘geared.’ A
relatively small market movement will have a proportionately larger impact on the funds you have
deposited or will have to deposit: this may work against you as well as for you. You may sustain a
total loss of initial margin funds and any additional funds deposited with the firm to maintain
your position. If the market moves against your position or margin levels are increased, you may be
called upon to pay substantial additional funds on short notice to maintain your position. If you
fail to comply with a request for additional funds within the time prescribed, your position may be
liquidated at a loss and you will be liable for any resulting deficit.

2. Risk-reducing orders or strategies

     The placing of certain orders (e.g., ‘stop-loss’ orders, where permitted under local law, or
‘stop-limit’ orders) which are intended to limit losses to certain amounts may not be effective
because market conditions may make it impossible to execute such orders. Strategies using
combinations of positions, such as ‘spread’ and ‘straddle’ positions, may be as risky as taking
simple ‘long’ or ‘short’ positions.

Options

3. Variable degree of risk

     Transactions in options carry a high degree of risk. Purchasers and sellers of options should
familiarize themselves with the type of option (i.e., put or call) which they contemplate trading
and the associated risks. You should calculate the extent to which the value of the options must
increase for your position to become profitable, taking into account the premium and all
transaction costs.

     The purchaser of options may offset or exercise the options or allow the options to expire.
The exercise of an option results either in a cash settlement or in the purchaser acquiring or
delivering the underlying interest. If the option is on a future, the purchaser will acquire a
futures position with associated liabilities for margin (see the section on Futures above). If the
purchased options expire worthless, you will suffer a total loss of your investment, which will
consist of the option premium plus transaction costs. If you are contemplating purchasing
deep-out-of-the-money options, you should be aware that the chance of such options becoming
profitable ordinarily is remote.

 

 

     Selling (‘writing’ or ‘granting’) an option generally entails considerably greater risk than
purchasing options. Although the premium received by the seller is fixed, the seller may sustain a
loss well in excess of that amount. The seller will be liable for additional margin to maintain the
position if the market moves unfavorably. The seller will also be exposed to the risk of the
purchaser exercising the option and the seller will be obligated to either settle the option in
cash or to acquire or deliver the underlying interest. If the option is on a future, the seller
will acquire a position in a future with associated liabilities for margin (see the section on
Futures above). If the position is ‘covered’ by the seller holding a corresponding position in the
underlying interest or a future or another option, the risk may be reduced. If the option is not
covered, the risk of loss can be unlimited.

     Certain exchanges in some jurisdictions permit deferred payment of the option premium,
exposing the purchaser to liability for margin payments not exceeding the amount of the premium.
The purchaser is still subject to the risk of losing the premium and transaction costs. When the
option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at
that time.

Additional risks common to futures and options

4. Terms and conditions of contracts

     You should ask the firm with which you deal about the terms and conditions of the specific
futures or options which you are trading and associated obligations (e.g., the circumstances under
which you may become obligated to make or take delivery of the underlying interest of a futures
contract and, in respect of options, expiration dates and restrictions on the time for exercise).
Under certain circumstances the specifications of outstanding contracts (including the exercise
price of an option) may be modified by the exchange or clearing house to reflect changes in the
underlying interest.

5. Suspension or restriction of trading and pricing relationships

     Market conditions (e.g., illiquidity) and/or the operation of the rules of certain markets
(e.g., the suspension of trading in any contract or contract month because of price limits or
‘circuit breakers’) may increase the risk of loss by making it difficult or impossible to effect
transactions or liquidate/offset positions. If you have sold options, this may increase the risk of
loss.

     Further, normal pricing relationships between the underlying interest and the future, and the
underlying interest and the option may not exist. This can occur when, for example, the futures
contract underlying the option is subject to price limits while the option is not. The absence of
an underlying reference price may make it difficult to judge ‘fair’ value.

6. Deposited cash and property

     You should familiarize yourself with the protections accorded money or other property you
deposit for domestic and foreign transactions, particularly in the event of a firm insolvency or
bankruptcy. The extent to which you may recover your money or property may be governed by specified
legislation or local rules. In some jurisdictions, property which had been specifically
identifiable as your own will be pro-rated in the same manner as cash for purposes of distribution
in the event of a shortfall.

 

 

7. Commission and other charges

     Before you begin to trade, you should obtain a clear explanation of all commissions, fees and
other charges for which you will be liable. These charges will affect your net profit (if any) or
increase your loss.

8. Transactions in other jurisdictions

     Transactions on markets in other jurisdictions, including markets formally linked to a
domestic market, may expose you to additional risk. Such markets may be subject to regulation which
may offer different or diminished investor protection. Before you trade, you should inquire about
any rules relevant to your particular transactions. Your local regulatory authority will be unable
to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions
where your transactions have been effected. You should ask the firm with which you deal for details
about the types of redress available in both your home jurisdiction and other relevant
jurisdictions before you start to trade.

9. Currency risks

     The profit or loss in transactions in foreign currency-denominated contracts (whether they are
traded in your own or another jurisdiction) will be affected by fluctuations in currency rates
where there is a need to convert from the currency denomination of the contract to another
currency.

10. Trading facilities

     Most open-outcry and electronic trading facilities are supported by computer-based component
systems for the order-routing, execution, matching, registration or clearing of trades. As with all
facilities and systems, they are vulnerable to temporary disruption or failure. Your ability to
recover certain losses may be subject to limits on liability imposed by the system provider, the
market, the clearing house and/or member firms. Such limits may vary; you should ask the firm with
which you deal for details in this respect.

11. Electronic trading

     Trading on an electronic trading system may differ not only from trading in an open-outcry
market but also from trading on other electronic trading systems. If you undertake transactions on
an electronic trading system, you will be exposed to risk associated with the system, including the
failure of hardware and software. The result of any system failure may be that your order is either
not executed according to your instructions or is not executed at all.

12. Off-exchange transactions

     In some jurisdictions, and only then in restricted circumstances, firms are permitted to
effect off-exchange transactions. The firm with which you deal may be acting as your counterparty
to the transaction. It may be difficult or impossible to liquidate an existing position, to assess
the value, to determine a fair price or to assess the exposure to risk. For these reasons, these
transactions may involve increased risks. Off-exchange transactions may be less regulated or
subject to a separate regulatory regime. Before you undertake such transactions, you should
familiarize yourself with applicable rules and attendant risks.

 

 

 INSTITUTIONAL FUTURES CLIENT ACCOUNT AGREEMENT

Merrill Lynch, Pierce, Fenner & Smith Incorporated, with an office at 1 South Wacker Drive,
Suite 300, Chicago, Illinois, 60606, (“Merrill Lynch”) agrees to carry one or more account(s)
(“Account”) for the undersigned (“Client”) and provide services to Client in connection with the
purchase and sale of cash commodities (including financial instruments), options on cash
commodities, commodity futures contracts, options on futures contracts, security futures products,
forward or leverage contracts, exchange of futures for physicals, and any similar instruments which
may be purchased or sold by or through Merrill Lynch for Client’s Account (collectively referred to
as “Futures Contracts”). In consideration thereof, Client and Merrill Lynch agree as follows:

1. AUTHORIZATIONS AND ACKNOWLEDGMENTS

Client authorizes Merrill Lynch to purchase or sell Futures Contracts for Client’s Account(s) in
accordance with Client’s oral or written instructions. Client hereby waives any defense that any
such instructions were not in writing as may be required by any law, rule or regulation. In any
such transaction, Merrill Lynch may act as agent or principal and may charge a mark-up or
commission, as may be limited by law, rule or regulation. All contracts and transactions entered
into after the close of any applicable futures exchange’s normal business hours may be considered
next business day activity. Merrill Lynch is not acting as a fiduciary, commodity trading advisor,
investments advisor or commodity pool operator with respect to Client or any Futures Contracts or
Account(s) and Merrill Lynch shall have no responsibility for compliance with any law or regulation
governing the conduct of any such fiduciary or advisor selected by Client or Client’s conduct as a
fiduciary, if applicable.

2. APPLICABLE LAW

All transactions under this Agreement shall be subject to the Commodity Exchange Act and the
constitution, rules, regulations, customs, usages, rulings and interpretations of the Commodity
Futures Trading Commission (“CFTC”), the National Futures Association (“NFA”), domestic or foreign
exchange markets, and their clearing houses, if any, where the transactions are executed by Merrill
Lynch or Merrill Lynch’s agents (“Applicable Law”). Merrill Lynch is hereby authorized, in its
discretion, to employ affiliated and nonaffiliated clearing members, carrying brokers and floor
brokers as Merrill Lynch’s agents or to engage in pre-execution discussions, in connection with the
execution, carrying, clearance, delivery and settlement of any such transactions as permitted by
Applicable Law. Client agrees to provide Merrill Lynch any information necessary for Merrill Lynch
to respond to any inquiry from any exchange, contract market or other regulatory agency pursuant to
Applicable Law.

Absent a separate written agreement with Client with respect to give-ups, Merrill Lynch, in its
discretion, may, but shall not be obligated to, accept from other brokers selected by Client,
Futures Contracts executed by such brokers which are given up to Merrill Lynch for clearing in any
Account(s). If Client has executed with other brokers and Merrill Lynch is required to pay such
executing brokers give up fees, Client agrees that Merrill Lynch may withhold such fees from
Client’s account in anticipation of such payment coming due.

3. MERRILL LYNCH REPRESENTATIONS

Merrill Lynch and its managing directors, officers, employees and affiliates may take or hold
positions in or advise other clients concerning contracts which are the subject of advice from
Merrill Lynch to the Client, which positions and advice may be consistent with or contrary to
positions which are the subject of advice to the Client. In addition, Merrill Lynch, its directors,
officers, employees, parent companies and affiliates may act on the other side of your order by the
purchase or sale for an account in which Merrill Lynch or any person affiliated with Merrill Lynch
has a direct or indirect interest, subject to such order being executed in accordance with and
subject to the limitations and conditions of exchange rules or other Applicable Law.

4. CLIENT REPRESENTATIONS

Client represents and warrants that (a) the individual(s) whose signatures are stated below is/are
duly authorized and empowered to execute and deliver this Agreement and to effect purchases and
sales of Futures Contracts through Merrill Lynch in one or more Accounts until such time as Merrill
Lynch is notified by Client to the contrary; (b) regardless of any subsequent determination to the
contrary, Client is a sophisticated user of the futures markets and is aware of the risks and
obligations of Futures Contracts and

 

 

is fully prepared to assume such risks and obligations; (c)
trading in Futures Contracts is within the power of Client and such activity will in no manner
contravene the provisions of any corporate resolutions, by-laws, statutes, rules, regulations,
operating agreement, partnership agreements, plan documents, trust agreements or any judgments,
orders or other agreements to which Client is bound; (d) Client is duly organized and in good
standing under the laws of the jurisdiction in which it was organized and in all jurisdictions
where it is qualified to do business; (e) Client is acting as principal and not as agent in
transactions under this Agreement and no person other than Client has or will have an interest in
Client’s Account(s) except as otherwise disclosed to Merrill Lynch herein; (f) Client agrees to
provide any information regarding its transactions in Futures Contracts in the Account if requested
of Merrill Lynch by any regulatory authority and (g) Merrill Lynch is authorized to follow the
instructions of the undersigned in every respect concerning this Account, including, but not
limited to, payment of monies. With respect to activity in the Account(s), Merrill Lynch may rely
upon the instructions of the above referenced individuals or any individuals subsequently
authorized by Client until Client notifies Merrill Lynch to the contrary.

If Client engages in exchange of futures for physical (“EFP”) transactions or exchange of futures
for swap transactions (“EFS”), Client acknowledges and agrees that, in connection with any EFP or
EFS that (a) if the Client is the seller of the cash contract(s) or swap, then the Client is the
buyer of the futures contract(s) being exchanged in the EFP or EFS respectively; and (b) if the
Client is the buyer of the cash contract(s) or swap then the Client is the seller of the futures
contract(s) being exchanged in the EFP or EFS, respectively. Upon request by Merrill Lynch, Client
agrees to provide documentation sufficient to verify its purchase or sale of the cash contract or
swap contract.

5. MODIFICATION AND TERMINATION

Whenever any statute shall be enacted which shall affect in any manner or be inconsistent with any
of the provisions hereof, or whenever any rule or regulation shall be prescribed or promulgated by
the CFTC, various commodity exchanges, or other agency or body having jurisdiction, which shall
affect in any manner or be inconsistent with any of the provisions hereof, the provisions of this
Agreement so affected shall be deemed modified or superseded, as the case may be, by such statute,
rule or regulation, and all other provisions of the Agreement and the provisions as modified or
superseded, shall in all respects continue to be in full force and effect. Merrill Lynch shall use
commercially reasonable efforts to give notice to the Client of any material change in conduct
under this Agreement required by any such statute, rule or regulation.

Either party may terminate this Agreement at any time by notice to the other. However, such
termination by Client shall not affect any transaction entered into by Client prior to receipt of
such notice by Merrill Lynch, or any open commodity positions or any liability held by or owed to
Merrill Lynch by Client at the time of such termination. If Client has outstanding give-up bills
owed to other brokers at the time of its termination of this Agreement, Merrill Lynch may withhold
the amount of such fees in order to make such payments.

Other than as set forth in the first paragraph above, no provision of this Agreement shall in any
respects be waived, altered, modified or amended unless such waiver, alteration, modification or
amendment is in writing and signed by one Merrill Lynch’s authorized officers and by one of
Client’s authorized officers. Client attests that if Client has downloaded this Agreement from the
internet or any electronic message, Client has printed it directly from the PDF or other electronic
file provided by Merrill Lynch without additional modification.

6. ADVICE

All advice with respect to Futures Contracts transmitted by Merrill Lynch with respect to the
Account is solely incidental to the conduct of Merrill Lynch’s business as a futures commission
merchant and such advice will not serve as the primary basis for any decision by the Client.
Merrill Lynch shall have no discretionary authority, power or control over any decision made by
Client with respect to the Account, whether or not Merrill Lynch’s advice is utilized in such
decision.

7. POSITION LIMITS

Client acknowledges Merrill Lynch’s right to limit the number of open positions which Client may
maintain or acquire through Merrill Lynch at any time upon notice to Client. In addition, Client
agrees it will not exceed contract market position limits without appropriate prior approval from
the relevant contract market. Client

 

 

agrees that it shall not agree with any exchange or contract
market to act as a market maker using Merrill Lynch’s execution or clearing capabilities without
the prior written approval of Merrill Lynch.

8. EXTRAORDINARY EVENTS AND THIRD PARTY ACTIONS

Merrill Lynch shall not be liable for breakdown or failure of transmission of communication
facilities, systems or software, government restrictions, war or acts of terrorism, exchange
failures or market rulings or natural disasters. Merrill Lynch shall not be liable to Client for
any loss, cost, expense or damage to the Client with respect thereto, except as a result of Merrill
Lynch’s gross negligence, willful misconduct or bad faith.

Under no circumstances shall Merrill Lynch have any responsibility, liability or obligation
regarding any conduct, act, omission or representation of any introducing firm, commodity trading
advisor, investment adviser or third party vendor selected by Client to give Client research or
advice, to electronically route orders to Merrill Lynch or to provide like services to Client. For
the avoidance of doubt, Merrill Lynch shall not be responsible for monitoring any trading
limitations Client may have provided to such third party.

9. SECURITY AND LENDING

All monies, securities, Futures Contracts or other property which Merrill Lynch may at any time be
carrying for the Client or which may at any time be in Merrill Lynch’s possession, including
safekeeping, shall be subject to a general lien, security interest and right of set-off and
recoupment in Merrill Lynch’s favor to discharge all obligations of the Client to Merrill Lynch,
irrespective of whether or not Merrill Lynch may have made advances in connection with such
securities, Futures Contracts or other property, and irrespective of the number of accounts the
Client may have with Merrill Lynch. Merrill Lynch may apply or transfer such funds or other
property of Client between any of Client’s accounts for the purposes of margin or reduction or
satisfaction of any net debit balance. Client will not cause or allow any of the collateral held in
the Account, whether now owned or hereafter acquired, to be or become subject to any liens,
security interests or encumbrances of any nature without the prior written consent of Merrill
Lynch, and in no event shall the collateral held in Client’s Account be subject to a lien or
security interest superior to that of Merrill Lynch.

In accordance with the terms and limitations of the Commodity Exchange Act regarding investment and
pledging of Client assets, the Client grants to Merrill Lynch the right to carry in its general
loans, and to pledge, re-pledge, hypothecate, re-hypothecate, invest or loan, either separately or
with the property of other clients, to either itself as broker or to others, any securities or
other property held by Merrill Lynch on margin for the Account(s) of the Client or as collateral
therefore.

10. FEES AND COMMISSIONS

Client shall be charged exchange and regulatory fees as determined by the relevant exchange and/or
regulator. If Client is a member of any U.S. exchange, Client must advise Merrill Lynch accordingly
if Client may avail itself of any reduced fee at such exchange. In addition, Client must notify
Merrill Lynch if it ceases to be a member of any such exchange. Client shall be liable for all
fees (including any fines) owed to the exchange if Client fails to give such notice to Merrill
Lynch. Merrill Lynch may pay interest to Client on any available margin excess as agreed to from
time to time between Merrill Lynch and Client. Merrill Lynch may charge interest upon Clients
Account(s) in accordance with Merrill Lynch’s customary charges, as determined by Merrill Lynch, at
the time of the acceptance of this Agreement and thereafter. Client agrees to pay all such
commissions as agreed to from time to time between Merrill Lynch and Client.

11. MARGIN

The Client will at all times maintain such margins or collateral for said Accounts, as are
reasonably required by Merrill Lynch or an exchange, contract market or clearing house, and will at
any time upon Merrill Lynch’s demand, discharge margin obligations of the Client to Merrill Lynch.

12. LIQUIDATION

If any of the following events shall occur, Merrill Lynch may proceed in accordance with the
following paragraph: (a) Client shall be dissolved or in any other way terminated other than a
bona fide restructuring (with prior notice to Merrill Lynch) that results in a successor entity
with no lesser credit quality than the original entity; (b) Client shall fail to timely deposit or
maintain initial or original margin, or make timely payment of additional or variation margin; (c)
Client shall fail to pay the premium on any option purchased

 

 

by Client; (d) a proceeding under any
applicable bankruptcy or insolvency law, an assignment for the benefit of creditors or an
application for a receiver, custodian, conservator, administrator, liquidator or trustee shall be
filed or applied for, by Client (or if Client is a trust, its trustee), or an order for relief
shall be issued by a court for the winding up, liquidation or administration of Client (or, if
Client is a trust, its trustee); (e) Client has suffered a material change in its financial
condition and is unable to provide Merrill Lynch with adequate assurances of its financial
stability; (f) Client’s Account shall incur a deficit balance; (g) Merrill Lynch shall determine
that any material representation or warranty made by Client to Merrill Lynch is untrue or
inaccurate and Client is unable to prove otherwise; (h) if Client is an investment company,
commodity pool or other form of collective investment vehicle, proceedings for the revocation or
suspension of any registration of any public offering of interests in Client or of any person or
entity required to be registered in connection with Client’s activities have been instituted or are
pending or threatened by any governmental agency or self-regulatory organization.

In each event specified above, Merrill Lynch may liquidate Client’s open positions in whole or in
part, sell or otherwise dispose of, realize, set off or apply any or all of the property
represented by an entry on or standing to the credit of Client’s Account or held by, to the order
or under the direction or control of Merrill Lynch or any exchange or clearing organization through
which transactions on Client’s behalf are executed or cleared, buy any property for Client’s
Account, and/or cancel any outstanding orders and commitments made by Merrill Lynch on Client’s
behalf. Without prejudice to the foregoing, Merrill Lynch shall have (to the greatest extent
permitted by applicable law) all of the rights of a secured party with respect to the property
referred to above, and any rights, powers and remedies provided herein shall operate as a variation
and extension of any statutory power of sale, application or realization available to Merrill Lynch
as a secured party.

Any such liquidation, sale, purchase and/or cancellation may be made at Merrill Lynch’s discretion
on any exchange or other market or through any clearing organization where such business is
transacted, at public auction or at private sale, upon prior notice to Client if reasonable under
the circumstances, without advertising the same and without prior tender, demand or call upon
Client. No prior tender, demand or call from Merrill Lynch of the time and place of such
liquidation, sale, purchase and/or cancellation shall be deemed to be a waiver of Merrill Lynch’s
right to liquidate, sell, purchase and/or cancel as provided herein.

In any transaction described above, Merrill Lynch may sell any property to itself or its affiliates
or buy any property from itself or its affiliates in an arms-length transaction. Merrill Lynch may,
to the extent permitted by law, purchase the whole or any part thereof free from any right of
redemption. In all cases, Client shall remain liable for, and shall pay to Merrill Lynch the
amount of, any deficiency in Client’s Accounts with Merrill Lynch resulting from any transaction
described herein above. So long as Merrill Lynch’s rights or position would not be jeopardized
thereby, Merrill Lynch shall make a good faith effort to notify Client of its intention to take any
of the actions specified in this paragraph before taking any such action, provided that Merrill
Lynch shall not be deemed to have breached any obligation to Client if no such notice is given.

13. CURRENCY FLUCTUATION RISK/PAYMENT OBLIGATIONS

All initial and subsequent deposits for margin purposes shall be made in U.S. Dollars unless
otherwise agreed by Merrill Lynch and Client. By placing an order for a Futures Contract that
settles in a currency other than U.S. dollars, Client agrees that Merrill Lynch may convert to the
appropriate currency funds sufficient to meet the applicable margin requirement. Client understands
and agrees that if Client trades in such Futures Contracts, the margin for and accruals from such
trading may be held in the applicable currency outside of the U.S., a money center country or the
country of origin of such currency and that accounts held outside of the U.S. may not be afforded
the bankruptcy protections of the U.S. bankruptcy code.

Client shall bear all risk and cost in respect to the conversion of currencies incurred relative to
transactions effected on behalf of Client pursuant hereto. In no event shall Merrill Lynch be
required to effect or be responsible for the conversion of funds in anticipation of changes in
prevailing rates of exchange.

With respect to all securities, Futures Contracts and other property purchased or sold for Client’s

 

 

Account(s), Client agrees to pay Merrill Lynch upon demand: (a) any tax imposed on such
transactions by any competent authority; (b) the amount of any trading losses in Client’s
Account(s) and (c) any debit balance or deficiency remaining in Client’s Account(s).

14. DELIVERY INSTRUCTIONS FOR PHYSICAL SETTLEMENT/OPTIONS EXERCISE

The Client understands that, if Client maintains an account for speculation, liquidating
instructions on open futures positions maturing in a current month must be given to Merrill Lynch
at least three (3) business days prior to the first notice day or last trading day, whichever is
earlier. If Client maintains an Account for hedging, Client understands that liquidating
instructions on open futures positions maturing in a current month must be given to Merrill Lynch
at least one (1) business days prior to the first notice day in the case of long positions and, in
the case of short positions, at least one (1) business days prior to the last trading day.
Alternatively, sufficient funds to take delivery or necessary delivery documents to make delivery
must be delivered to Merrill Lynch within the same period(s) described above, as applicable. Client
understands and acknowledges that option positions may be subject to automatic exercise procedures.
Merrill Lynch will exercise all in-the-money option positions that are subject to automatic
exercise unless Client advises Merrill Lynch to the contrary. If Client fails to comply with any of
the foregoing obligations, Merrill Lynch may, at its discretion and in any commercially reasonable
manner, liquidate any open positions, make or receive delivery of any securities, commodities or
instruments, or exercise or allow the expiration of any option. Client shall remain fully liable
for all costs, expenses and liabilities incurred by Merrill Lynch in connection with such
transactions and for any remaining debit balance.

In the event Merrill Lynch has requested from Client instructions, funds or documents and none are
received by Merrill Lynch within the applicable time frame above, Merrill Lynch without any further
notice or requests, may either liquidate the Client’s positions, or make or receive delivery on the
Client’s behalf upon such terms and by such methods which Merrill Lynch deems to be feasible. In
all cases, if any exchange or self-regulatory organization requests delivery intention instructions
from Merrill Lynch, Client shall provide such instructions promptly without regard to the above
time frames.

In the case of Merrill Lynch’s inability to deliver any security, commodity or other property to
the purchaser by reason of failure of the Client to supply Merrill Lynch therewith, then and in
such event, the Client authorizes Merrill Lynch to borrow any security, commodity or other property
necessary to make delivery thereof. Client agrees to be responsible for any premiums which Merrill
Lynch may be required to pay thereon or any cost which Merrill Lynch may sustain by reason of
Merrill Lynch’s inability to borrow the security, commodity or other property sold.

Notwithstanding the foregoing, any time that Client fails to make or take delivery, Client agrees
that it shall be responsible for any debit, loss, exchange or clearing corporation fine or other
assessment or penalty levied against Merrill Lynch as a result of Client’s failed delivery.

15. VERIFICATION OF INFORMATION

Federal law requires all financial institutions to obtain, verify, and record information that
identifies each Client who opens an account and, therefore, in order to open an account, Merrill
Lynch may request Client’s name, formation documents, licenses, as well as other information
necessary to verify identity (including date of birth for individuals). Further, Client
understands that an investigation may be conducted at banks, financial institutions and credit
agencies pertaining to Client’s identity, credit standing and its business. The Client agrees to
notify Merrill Lynch if the financial information provided to Merrill Lynch by Client changes in
any material respect.

If more than one person or entity owns an interest in the Account, all such persons and entities
shall execute this Agreement and each shall be deemed to be the Client.

16. CONCLUSIVENESS OF REPORTS

All written and oral reports related to the Accounts, including but not limited to confirmations,
purchase and sale statements and monthly statements, given to Client shall be conclusive and
binding on Client unless Client notifies Merrill Lynch of any objection as follows: (i) in the case
of any oral communication, at the time such report is given to Customer, and (ii) in the case of
any written communication, before the

 

 

opening of trading on the business day following the day on
which Client received such written communication, provided however, that with respect to monthly
statements, Client will notify Merrill Lynch of any objection within two (2) business days after
receipt.

Communications will be sent to the Client via mail, electronic transmission or facsimile at
Client’s request, at the address of record on the Account Application submitted by Client or at
such other address as the Client may hereafter give Merrill Lynch in writing. Client must notify
Merrill Lynch if it is not receiving its statements in a timely manner.

All objections should be directed to Client’s futures client service representative or to Merrill
Lynch’s Futures Operations Division at 312.442.5450. If any error is not corrected timely or if
Client has any other compliant, Client must send a written notice to Merrill Lynch at Merrill
Lynch, Pierce, Fenner & Smith, Futures Compliance Department, World Financial Center, North Tower,
12th Floor, New York, NY, 10080, facsimile number 212.738.2788.

17. GOVERNING LAW, JURISDICTION, SUCCESSORS AND BINDING EFFECT

This Agreement and its enforcement shall be governed by the laws of the State of New York without
regard to conflicts of law principles. Client submits to the non-exclusive jurisdiction of the
courts of the State of New York and of the Federal Courts in the Southern District of New York with
respect to any claim arising out of or involving this Agreement. Client agrees that any claim,
action or proceeding arising under or in any way relating to this Agreement must be brought, if at
all, within one year of the date of the event(s) giving rise thereto. Client and Merrill Lynch
hereby waive a trial by jury in any action arising out of or relating to this Agreement or any
transaction in connection therewith.

All provisions shall be continuous, and shall cover the Account(s) which the Client opens with
Merrill Lynch, and shall inure to the benefit of Merrill Lynch’s parent firm or any successor
organization, and shall be binding upon the Client, its successors and assigns. If any part of
this Agreement is found by a court of competent jurisdiction to be void, unlawful or unenforceable,
the remainder of this Agreement shall continue in full force and effect.

In accordance with CFTC Regulation 1.65, Merrill Lynch may assign the Client’s Account(s) and this
Agreement to another registered Futures Commission Merchant (“FCM”) by notifying the Client of the
date and name of the intended assignee FCM, which notice shall be provided to Client at least ten
business days prior to the date of the intended assignment. Unless Client objects to the assignment
prior to the scheduled date for the assignment, the assignment will be binding on the Client.
Client may not assign this Agreement without Merrill Lynch’s prior consent, which shall not be
unreasonably withheld.

18. COMPENSATION FOR LOSSES AND EXPENSES

Client agrees to compensate Merrill Lynch, its parent, affiliates, employees and agents for any and
all loss, liability or cost (including reasonable attorneys’ fees), penalty or tax incurred by
Merrill Lynch as a result of Client’s failure to comply with any provision of, or to perform any
obligation under, this Agreement.

If Client is a trust, then specifically, without limiting the generality of the prior paragraph,
Client agrees that Merrill Lynch shall not be responsible for its compliance with the Trustee’s
instructions. Merrill Lynch shall be responsible to Client for any breach of this Agreement by
Merrill Lynch and the conduct of its employees and agents which constitutes negligence or willful
misconduct.

19. RECORDING

Each party understands that the other party, in its discretion, may record on tape or otherwise,
any telephone conversation between the parties, although neither party assumes responsibility to do
such or to retain such recordings. The parties acknowledge, authorize and consent to the
electronic recording of telephone conversations between Client, Merrill Lynch or any of their
respective employees, agents or associated persons, on tape or otherwise, with or without the use
of an automatic tone warning device. The parties further agree that they have notified or will
notify their respective employees of such recording and to obtain any necessary consent of such
employees through policy manuals or otherwise. Each

 

 

party agrees that such recordings may be
submitted in evidence in any proceeding or action relating to this Agreement, provided,
however, the parties agree not to object to admission of such evidence based on the fact that
the recording may not be a “writing” and may not be “signed.”

20. ERISA CLIENTS

If Client is subject to the Employee Retirement Income Security Act of 1974 (“ERISA”), Client or
its advisor, if applicable, has considered the obligations and requirements of ERISA, including
prudence and diversification, with respect to trading Futures Contracts and the other transactions
anticipated under this Agreement. Client’s represents that the opening of the Account will not
result in or constitute a “prohibited transaction” under Section 406 of ERISA or Section 4975 of
the Code or any similar provision of applicable law, for which an exemption is not available, and
the undersigned will not enter into any transaction using assets of the Account that will result in
or constitute a “prohibited transaction” under Section 406 of ERISA or Section 4975 of the Code or
any similar provision of applicable law, for which an exemption is not available. Client agrees
that Merrill Lynch has no discretionary authority over this Account and is not a fiduciary with
respect to Client.

21. HEDGE ACCOUNT DESIGNATION (Please strike Paragraphs 21 & 22 if Client’s Account is
speculative)

If this Account(s) is a hedge Account(s), all orders which the Client gives for the purchase
or sale of futures or options contracts for the Client’s Account(s) will represent bona fide hedges
in accordance with accepted definitions of hedge transactions as that term is defined in Regulation
1.3(z) under the Commodity Exchange Act, if applicable, and any amendments or interpretations
thereto which may be made in the future by the Commodity Futures Trading Commission. Client
acknowledges that it is required to complete the Required Hedge Account Instructions in Paragraph
22 below and notify Merrill Lynch if any transactions in Futures Contracts should no longer be
designated as hedged Futures Contracts.

22. REQUIRED HEDGE ACCOUNT INSTRUCTIONS

If Client has indicated on the Futures Account Application that orders placed for the Account
represent bona fide hedging transactions, please complete the following. Client should note that
CFTC Regulation §190.06 permits Client to specify whether, in the unlikely event of Merrill Lynch’s
bankruptcy, Client prefers the bankruptcy trustee to liquidate all positions in the Account.
Accordingly, Client hereby elects as follows: (please check appropriate box):

o   Liquidate          o   Not Liquidate

If neither alternative is initialed, Client will be deemed to have elected to have all positions
liquidated. This election may be changed at any time by Client through written notice.

 

 

23. RECEIPT OF CLIENT ACKNOWLEDGMENTS

By checking the boxes and signing below, Client hereby expressly acknowledges and agrees that
Client has received, read and understood and has retained a copy of the “Risk Disclosure Statement
for Futures and Options” which includes the disclosures required by CFTC Rules 1.55, 30.6, 33.7 and
190.10(c), the specific disclosure statements below and other disclosure and risk statements
applicable to Client’s account as set forth in this Agreement and the “Client Account Application,
Disclosure Statements and Notices”. Please check all boxes.

	 	 	 	r Risk Disclosure Statement for Futures and Options
	 
	 	 	 	r Authorization to Transfer Client Funds (as set forth in Section 9)
	 
	 	 	 	r Authorization for Cross Transactions (as set forth in Section 3)

Client hereby acknowledges that Client has read and understands all the disclosures provided and
agrees to be bound by all of the terms contained in this Agreement. Client agrees to immediately
notify Merrill Lynch of any material changes to the information contained herein. Merrill Lynch and
Client agree that this Agreement may be executed in counterparts.

PLEASE NOTE: If this Agreement is executed on behalf of a corporation, a corporate resolution
authorizing the signature(s) below must be attached. If this Agreement is executed on behalf of a
partnership, then the signature(s) below is/are that of all of the General Partners and the
partnership agreement must be attached. If this Agreement is executed on behalf of a Trust, the
Trustee signature block below must be signed and the trust agreement provided. If this Agreement is
executed on behalf of a limited liability company or a non-US limited company, the operating
agreement or a resolution authorizing the signature(s) below must be attached. Persons signing
this Agreement must provide proof of identity. Additional documentation may be requested in
accordance with applicable anti-money laundering policies.

Please indicate your understanding and agreement of these terms by signing below.

      

Account Name:____________________________________________________________________________________
 

	 	 	 	 	 
	By:

	 	___________________________________________________
	 	___________________________________________________

	 

	 	Authorized Signature
	 	Date
	 

	 	___________________________________________________

	 	___________________________________________________

	 

	 	Print Name
	 	Title
	By:

	 	___________________________________________________
	 	___________________________________________________
	 

	 	Authorized Signature
	 	Date
	 

	 	___________________________________________________
	 	___________________________________________________

	 

	 	Print Name
	 	Title

	 	 	 
	____________________________________

	 Merril Lynch 
	 ________________________________________

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