Common use of Redemptions through the Clearing Process: Delivery Fails; Posting of Cash Clause in Contracts

Redemptions through the Clearing Process: Delivery Fails; Posting of Cash. 1. The Trust recognizes that on the redemption of Creation Units of an ETF Series through the Clearing Process X.X. Xxxxxx, on behalf of the applicable ETF Series, is obligated to deliver to NSCC on the settlement date the required type and amount of Redemption Securities to redeem the Creation Units of the applicable ETF Series. It shall be the responsibility of the Trust and each ETF Series to maintain in the custody account the required type and amount of Redemption Securities for the redemption of Creation Units of each ETF Series. Should the custody account of an ETF Series for any reason (for example, through the Trust’s participation in a securities lending program on behalf of the ETF Series) have a short position in respect of any of the securities creates comprising the basket of Redemption Securities (a “short delivery position”) with the result that, on settlement date, X.X. Xxxxxx is unable to deliver a sufficient quantity of the Redemption Securities to NSCC, the Trust acknowledges that X.X. Xxxxxx shall be obligated under NSCC’s rules to fund the short delivery position with cash pending delivery of the quantity of securities needed to cover the short delivery position. X.X. Xxxxxx shall be entitled to charge to the account of the applicable ETF Series the amount of cash needed to cover the short delivery position. In the event that X.X. Xxxxxx advances its own funds to cover an ETF Series short delivery position, X.X. Xxxxxx, in its discretion, may charge the applicable EFT Series interest on the amount of the advance at the rate that X.X. Xxxxxx charges for advances of a similar nature to similar customers of X.X. Xxxxxx, unless X.X. Xxxxxx and the Trust have mutually agreed in writing upon another rate. 2. In the event that X.X. Xxxxxx shall have advanced its own funds to cover a short delivery position at NSCC for an ETF Series, X.X. Xxxxxx shall have, to the extent of the amount of the advance, a security interest in the securities that remain in the ETF Series custody account and X.X. Xxxxxx shall have all the rights and remedies of a secured party under the New York Uniform Commercial Code. Nothing herein or in the Custody Agreement shall be construed to mandate that X.X. Xxxxxx, acting as Index Receipt Agent for the Trust and each ETF Series, effect redemptions of Creation Units where X.X. Xxxxxx, acting in good faith, believes that it may not be repaid an advance by the Trust or the ETF Series or otherwise not receive from the ETF Series delivery of the Redemption Securities that are the subject of a short delivery position.

Redemptions through the Clearing Process: Delivery Fails; Posting of Cash. 1. The Trust recognizes that on the redemption of Creation Units of an ETF Series through the Clearing Process X.X. XxxxxxBank, on behalf of the applicable ETF Series, is obligated to deliver to NSCC on the settlement date the required type and amount of Redemption Securities to redeem the Creation Units of the applicable ETF Series. It shall be the responsibility of the Trust and each ETF Series to maintain in the custody account the required type and amount of Redemption Securities for the redemption of Creation Units of each ETF Series. Should the custody account of an ETF Series for any reason (for example, through the Trust’s participation in a securities lending program on behalf of the ETF Series) have a short position in respect of any of the securities creates issues comprising the basket of Redemption Securities (a “short delivery position”) with the result that, on settlement date, X.X. Xxxxxx Bank is unable to deliver a sufficient quantity of the Redemption Securities to NSCC, the Trust acknowledges that X.X. Xxxxxx Bank shall be obligated under NSCC’s rules to fund the short delivery position with cash pending delivery of the quantity of securities needed to cover the short delivery position. X.X. Xxxxxx Bank shall be entitled to charge to the account of the applicable ETF Series the amount of cash needed to cover the short delivery position. In the event that X.X. Xxxxxx Bank advances its own funds to cover an ETF Series short delivery position, X.X. XxxxxxBank, in its discretion, may charge the applicable EFT Series interest on the amount of the advance at the rate that X.X. Xxxxxx Bank charges for advances of a similar nature to similar customers of X.X. XxxxxxBank, unless X.X. Xxxxxx Bank and the Trust have mutually agreed in writing upon another rate. 2. In the event that X.X. Xxxxxx Bank shall have advanced its own funds to cover a short delivery position at NSCC for an ETF Series, X.X. Xxxxxx Bank shall have, to the extent of the amount of the advance, a security interest in the securities that remain in the ETF Series custody account and X.X. Xxxxxx Bank shall have all the rights and remedies of a secured party under the New York Uniform Commercial Code. Nothing herein or in the Custody Agreement shall be construed to mandate that X.X. XxxxxxBank, acting as Index Receipt Agent for the Trust and each ETF Series, effect redemptions of Creation Units where X.X. XxxxxxBank, acting in good faith, believes that it may not be repaid an advance by the Trust or the ETF Series or otherwise not receive from the ETF Series delivery of the Redemption Securities that are the subject of a short delivery position.

Redemptions through the Clearing Process: Delivery Fails; Posting of Cash. 1. The Trust recognizes that on the redemption of Creation Units of an ETF Series through the Clearing Process X.X. XxxxxxIndex Receipt Agent, on behalf of the applicable ETF Series, is obligated to deliver to NSCC on the settlement date the required type and amount of Redemption Securities to redeem the Creation Units of the applicable ETF Series. It shall be the responsibility of the Trust and each ETF Series to maintain in the custody account the required type and amount of Redemption Securities for the redemption of Creation Units of each ETF Series. Should the custody account of an ETF Series for any reason (for example, through the Trust’s participation in a securities lending program on behalf of the ETF Series) have a short position in respect of any of the securities creates comprising the basket of Redemption Securities (a “short delivery position”) with the result that, on settlement date, X.X. Xxxxxx Index Receipt Agent is unable to deliver a sufficient quantity of the Redemption Securities to NSCC, the Trust acknowledges that X.X. Xxxxxx Index Receipt Agent shall be obligated under NSCC’s rules to fund the short delivery position with cash pending delivery of the quantity of securities needed to cover the short delivery position. X.X. Xxxxxx Index Receipt Agent shall be entitled to charge to the account of the applicable ETF Series the amount of cash needed to cover the short delivery position. In the event that X.X. Xxxxxx Index Receipt Agent advances its own funds to cover an ETF Series short delivery position, X.X. XxxxxxIndex Receipt Agent, in its discretion, may charge the applicable EFT Series interest on the amount of the advance at the rate that X.X. Xxxxxx Index Receipt Agent charges for advances of a similar nature to similar customers of X.X. XxxxxxIndex Receipt Agent, unless X.X. Xxxxxx Index Receipt Agent and the Trust have mutually agreed in writing upon another rate. 2. In the event that X.X. Xxxxxx shall have advanced its own funds to cover of a short delivery position at NSCC for an ETF Series, X.X. Xxxxxx Index Receipt Agent may, in its discretion, elect to advanced its own funds to cover such shortfall. If Index Receipt Agent elects to make such an advance, the advance will be deemed a loan to the Trust, payable either on demand or automatically upon the occurrence of any event with respect to the Trust that is specified in either section 9.2(a)(ii) of this Agreement or section 365(e)(1) of the U.S. Bankruptcy Code, as amended from time to time. Any such advance will bear interest at the applicable rate charged by Index Receipt Agent from time to time for such advances, from the date of such advance to the date of payment (including after the date any judgment may be entered against the Trust with respect to any advance) and otherwise on the terms on which Index Receipt Agent makes similar advances available from time to time. No prior action or course of dealing on Index Receipt Agent’s part with respect to the settlement of transactions on the Trust’s behalf will be asserted by the Trust against Index Receipt Agent for Index Receipt Agent’s refusal to make advances. The Trust acknowledges that any advance made under this Agreement is intended to be treated as a “securities contract” for purposes of the U.S. Bankruptcy Code to the maximum extent permitted by that Code, as amended from time to time. Index Receipt Agent shall have, to the extent of the amount of the advance, a security interest in the securities that remain in the ETF Series custody account and X.X. Xxxxxx Index Receipt Agent shall have all the rights and remedies of a secured party under the New York Uniform Commercial Code. Nothing herein or in the Custody Agreement shall be construed to mandate that X.X. XxxxxxIndex Receipt Agent, acting as Index Receipt Agent for the Trust and each ETF Series, effect redemptions of Creation Units where X.X. XxxxxxIndex Receipt Agent, acting in good faith, believes that it may not be repaid an advance by the Trust or the ETF Series or otherwise not receive from the ETF Series delivery of the Redemption Securities that are the subject of a short delivery position.

Redemptions through the Clearing Process: Delivery Fails; Posting of Cash. 1. The Trust recognizes that on the redemption of Creation Units of an ETF Series through the Clearing Process X.X. XxxxxxBank, on behalf of the applicable ETF Series, is obligated to deliver to NSCC on the settlement date the required type and amount of Redemption Securities to redeem the Creation Units of the applicable ETF Series. It shall be the responsibility of the Trust and each ETF Series to maintain in the custody account the required type and amount of Redemption Securities for the redemption of Creation Units of each ETF Series. Should the custody account of an ETF Series for any reason (for example, through the Trust’s participation in a securities lending program on behalf of the ETF Series) have a short position in respect of any of the securities creates issues comprising the basket of Redemption Securities (a “short delivery position”) with the result that, on settlement date, X.X. Xxxxxx Bank is unable to deliver a sufficient quantity of the Redemption Securities to NSCC, the Trust acknowledges that X.X. Xxxxxx Bank shall be obligated under NSCC’s rules to fund the short delivery position with cash pending delivery of the quantity of securities needed to cover the short delivery position. X.X. Xxxxxx Bank shall be entitled to charge to the account of the applicable ETF Series the amount of cash needed to cover the short delivery position. In the event that X.X. Xxxxxx Bank advances its own funds to cover an ETF Series short delivery position, X.X. XxxxxxBank, in its discretion, may charge the applicable EFT ETF Series interest on the amount of the advance at the rate that X.X. Xxxxxx Bank charges for advances of a similar nature to similar customers of X.X. XxxxxxBank, unless X.X. Xxxxxx Bank and the Trust have mutually agreed in writing upon another rate. 2. In the event that X.X. Xxxxxx Bank shall have advanced its own funds to cover a short delivery position at NSCC for an ETF Series, X.X. Xxxxxx Bank shall have, to the extent of the amount of the advance, a security interest in the securities that remain in the ETF Series custody account and X.X. Xxxxxx Bank shall have all the rights and remedies of a secured party under the New York Uniform Commercial Code. Nothing herein or in the Custody Agreement shall be construed to mandate that X.X. XxxxxxBank, acting as Index Receipt Agent for the Trust and each ETF Series, effect redemptions of Creation Units where X.X. XxxxxxBank, acting in good faith, believes that it may not be repaid an advance by the Trust or the ETF Series or otherwise not receive from the ETF Series delivery of the Redemption Securities that are the subject of a short delivery position.

Redemptions through the Clearing Process: Delivery Fails; Posting of Cash. 1. The Trust recognizes that on the redemption of Creation Units of an ETF Series the Fund through the Clearing Process X.X. XxxxxxProcess, Bank on behalf of the applicable ETF Series, Fund is obligated to deliver to NSCC on the settlement date the required type and amount of Redemption Securities to redeem the Creation Units of the applicable ETF SeriesFund. It shall be the responsibility of the Trust and each ETF Series the Fund to maintain in the custody account the required type and amount of Redemption Securities for the redemption of Creation Units of each ETF Seriesthe Fund. Should the custody account of an ETF Series for any reason (for example, through the Trust’s 's participation in a securities lending program on behalf of the ETF SeriesFund) have a short position in respect of any of the securities creates issues comprising the basket of Redemption Securities (a “"short delivery position”") with the result that, on settlement date, X.X. Xxxxxx Bank is unable to deliver a sufficient quantity of the Redemption Securities to NSCC, the Trust acknowledges that X.X. Xxxxxx Bank shall be obligated under NSCC’s 's rules to fund the short delivery position with cash pending delivery of the quantity of securities needed to cover the short delivery position. X.X. Xxxxxx Bank shall be entitled to charge to the account of the applicable ETF Series Fund the amount of cash needed to cover the short delivery position. In the event that X.X. Xxxxxx Bank advances its own funds to cover an ETF Series Fund short delivery position, X.X. XxxxxxBank, in its discretion, may charge the applicable EFT Series Fund interest on the amount of the advance at the rate that X.X. Xxxxxx Bank charges for advances of a similar nature to similar customers of X.X. XxxxxxBank, unless X.X. Xxxxxx Bank and the Trust have mutually agreed in writing upon another rate. 2. In the event that X.X. Xxxxxx Bank shall have advanced its own funds to cover a short delivery position at NSCC for an ETF Seriesthe Fund, X.X. Xxxxxx Bank shall have, to the extent of the amount of the advance, a security interest in the securities that remain in the ETF Series Fund custody account and X.X. Xxxxxx Bank shall have all the rights and remedies of as a secured party under the New York Uniform Commercial Code. Nothing herein or in the Custody Agreement shall be construed to mandate that X.X. XxxxxxBank, acting as Index Receipt Agent for the Trust and each ETF Seriesthe Fund, effect redemptions of Creation Units where X.X. XxxxxxBank, acting in good faith, believes that it may not be repaid an advance by the Trust or the ETF Series Fund or otherwise not receive from the ETF Series Fund delivery of the Redemption Securities that are the subject of a short delivery position.

Redemptions through the Clearing Process: Delivery Fails; Posting of Cash. 1. The Trust recognizes that on the redemption of Creation Units of an ETF Series through the Clearing Process X.X. XxxxxxIndex Receipt Agent, on behalf of the applicable ETF Series, is obligated to deliver to NSCC on the settlement date the required type and amount of Redemption Securities to redeem the Creation Units of the applicable ETF Series. It shall be the responsibility of the Trust and each ETF Series to maintain in the custody account the required type and amount of Redemption Securities for the redemption of Creation Units of each ETF Series. Should the custody account of an ETF Series for any reason (for example, through the Trust’s participation in a securities lending program on behalf of the ETF Series) have a short position in respect of any of the securities creates comprising the basket of Redemption Securities (a “short delivery position”) with the result that, on settlement date, X.X. Xxxxxx Index Receipt Agent is unable to deliver a sufficient quantity of the Redemption Securities to NSCC, the Trust acknowledges that X.X. Xxxxxx Index Receipt Agent shall be obligated under NSCC’s rules to fund the short delivery position with cash pending delivery of the quantity of securities needed to cover the short delivery position. X.X. Xxxxxx Index Receipt Agent shall be entitled to charge to the account of the applicable ETF Series the amount of cash needed to cover the short delivery position. In the event that X.X. Xxxxxx Index Receipt Agent advances its own funds to cover an ETF Series short delivery position, X.X. XxxxxxIndex Receipt Agent, in its discretion, may charge the applicable EFT Series interest on the amount of the advance at the rate that X.X. Xxxxxx Index Receipt Agent charges for advances of a similar nature to similar customers of X.X. XxxxxxIndex Receipt Agent, unless X.X. Xxxxxx Index Receipt Agent and the Trust have mutually agreed in writing upon another rate. 2. In the event that X.X. Xxxxxx shall have advanced its own funds to cover of a short delivery position at NSCC for an ETF Series, X.X. Xxxxxx Index Receipt Agent may, in its discretion, elect to advanced its own funds to cover such shortfall. If Index Receipt Agent elects to make such an advance, the advance will be deemed a loan to the Trust, payable either on demand or automatically upon the occurrence of any event with respect to the Trust that is specified in either section 9.2(a)(ii) of this Agreement or section 365(e)(1) of the U.S. Bankruptcy Code, as amended from time to time. Any such advance will bear interest at the applicable rate charged by Index Receipt Agent from time to time for such advances, from the date of such advance to the date of payment (including after the date any judgment may be entered against the Trust with respect to any advance) and otherwise on the terms on which Index Receipt Agent makes similar advances available from time to time. No prior action or course of dealing on Index Receipt Agent’s part with respect to the settlement of transactions on the Trust’s behalf will be asserted by the Trust against Index Receipt Agent for Index Receipt Agent’s refusal to make advances. The Trust acknowledges that any advance made under this Agreement is intended to be treated as a “securities contract” for purposes of the U.S. Bankruptcy Code to the maximum extent permitted by that Code, as amended from time to time. Index Receipt Agent shall have, to the extent of the amount of the advance, a security interest in the securities that remain in the ETF Series custody account and X.X. Xxxxxx Index Receipt Agent shall have all the rights and remedies of a secured party under the New York Uniform Commercial Code. Nothing herein or in the Custody Agreement shall be construed to mandate that X.X. XxxxxxIndex Receipt Agent, acting as Index Receipt Agent for the Trust and each ETF Series, effect redemptions of Creation Units where X.X. XxxxxxIndex Receipt Agent, acting in good faith, believes that it may not be repaid an advance by the Trust or the ETF Series or otherwise not receive from the ETF Series delivery of the Redemption Securities that are the subject of a short delivery position.

Redemptions through the Clearing Process: Delivery Fails; Posting of Cash. 1. The Trust recognizes that on the redemption of Creation Units of an ETF Series through the Clearing Process X.X. J.X. Xxxxxx, on behalf of the applicable ETF Series, is obligated to deliver to NSCC on the settlement date the required type and amount of Redemption Securities to redeem the Creation Units of the applicable ETF Series. It shall be the responsibility of the Trust and each ETF Series to maintain in the custody account the required type and amount of Redemption Securities for the redemption of Creation Units of each ETF Series. Should the custody account of an ETF Series for any reason (for example, through the Trust’s participation in a securities lending program on behalf of the ETF Series) have a short position in respect of any of the securities creates comprising the basket of Redemption Securities (a “short delivery position”) with the result that, on settlement date, X.X. J.X. Xxxxxx is unable to deliver a sufficient quantity of the Redemption Securities to NSCC, the Trust acknowledges that X.X. J.X. Xxxxxx shall be obligated under NSCC’s rules to fund the short delivery position with cash pending delivery of the quantity of securities needed to cover the short delivery position. X.X. J.X. Xxxxxx shall be entitled to charge to the account of the applicable ETF Series the amount of cash needed to cover the short delivery position. In the event that X.X. J.X. Xxxxxx advances its own funds to cover an ETF Series short delivery position, X.X. J.X. Xxxxxx, in its discretion, may charge the applicable EFT ETF Series interest on the amount of the advance at the rate that X.X. J.X. Xxxxxx charges for advances of a similar nature to similar customers of X.X. J.X. Xxxxxx, unless X.X. J.X. Xxxxxx and the Trust have mutually agreed in writing upon another rate. 2. In the event that X.X. J.X. Xxxxxx shall have advanced its own funds to cover a short delivery position at NSCC for an ETF Series, X.X. J.X. Xxxxxx shall have, to the extent of the amount of the advance, a security interest in the securities that remain in the ETF Series custody account and X.X. J.X. Xxxxxx shall have all the rights and remedies of a secured party under the New York Uniform Commercial Code. Nothing herein or in the Custody Agreement shall be construed to mandate that X.X. J.X. Xxxxxx, acting as Index Receipt Agent for the Trust and each ETF Series, effect redemptions of Creation Units where X.X. J.X. Xxxxxx, acting in good faith, believes that it may not be repaid an advance by the Trust or the ETF Series or otherwise not receive from the ETF Series delivery of the Redemption Securities that are the subject of a short delivery position.

Redemptions through the Clearing Process: Delivery Fails; Posting of Cash. 1. The Trust recognizes that on the redemption of Creation Units of an ETF Series through the Clearing Process X.X. XxxxxxIndex Receipt Agent, on behalf of the applicable ETF Series, is obligated to deliver to NSCC on the settlement date the required type and amount of Redemption Securities to redeem the Creation Units of the applicable ETF Series. It shall be the responsibility of the Trust and each ETF Series to maintain in the custody account the required type and amount of Redemption Securities for the redemption of Creation Units of each ETF Series. Should the custody account of an ETF Series for any reason (for example, through the Trust’s participation in a securities lending program on behalf of the ETF Series) have a short position in respect of any of the securities creates comprising the basket of Redemption Securities (a “short delivery position”) with the result that, on settlement date, X.X. Xxxxxx Index Receipt Agent is unable to deliver a sufficient quantity of the Redemption Securities to NSCC, the Trust acknowledges that X.X. Xxxxxx Index Receipt Agent shall be obligated under NSCC’s rules to fund the short delivery position with cash pending delivery of the quantity of securities needed to cover the short delivery position. X.X. Xxxxxx Index Receipt Agent shall be entitled to charge to the account of the applicable ETF Series the amount of cash needed to cover the short delivery position. In the event that X.X. Xxxxxx Index Receipt Agent advances its own funds to cover an ETF Series short delivery position, X.X. XxxxxxIndex Receipt Agent, in its discretion, may charge the applicable EFT ETF Series interest on the amount of the advance at the rate that X.X. Xxxxxx Index Receipt Agent charges for advances of a similar nature to similar customers of X.X. XxxxxxIndex Receipt Agent, unless X.X. Xxxxxx Index Receipt Agent and the Trust have mutually agreed in writing upon another rate. 2. In the event that X.X. Xxxxxx shall have advanced its own funds to cover of a short delivery position at NSCC for an ETF Series, X.X. Xxxxxx Index Receipt Agent may, in its discretion, elect to advanced its own funds to cover such shortfall. If Index Receipt Agent elects to make such an advance, the advance will be deemed a loan to the Trust, payable either on demand or automatically upon the occurrence of any event with respect to the Trust that is specified in either section 9.2(a)(ii) of this Agreement or section 365(e)(1) of the U.S. Bankruptcy Code, as amended from time to time. Any such advance will bear interest at the applicable rate charged by Index Receipt Agent from time to time for such advances, from the date of such advance to the date of payment (including after the date any judgment may be entered against the Trust with respect to any advance) and otherwise on the terms on which Index Receipt Agent makes similar advances available from time to time. No prior action or course of dealing on Index Receipt Agent’s part with respect to the settlement of transactions on the Trust’s behalf will be asserted by the Trust against Index Receipt Agent for Index Receipt Agent’s refusal to make advances. The Trust acknowledges that any advance made under this Agreement is intended to be treated as a “securities contract” for purposes of the U.S. Bankruptcy Code to the maximum extent permitted by that Code, as amended from time to time. Index Receipt Agent shall have, to the extent of the amount of the advance, a security interest in the securities that remain in the ETF Series custody account and X.X. Xxxxxx Index Receipt Agent shall have all the rights and remedies of a secured party under the New York Uniform Commercial Code. Nothing herein or in the Custody Agreement shall be construed to mandate that X.X. XxxxxxIndex Receipt Agent, acting as Index Receipt Agent for the Trust and each ETF Series, effect redemptions of Creation Units where X.X. XxxxxxIndex Receipt Agent, acting in good faith, believes that it may not be repaid an advance by the Trust or the ETF Series or otherwise not receive from the ETF Series delivery of the Redemption Securities that are the subject of a short delivery position.

Redemptions through the Clearing Process: Delivery Fails; Posting of Cash. 1. The Trust recognizes that on the redemption of Creation Units of an ETF Series through the Clearing Process X.X. J.X. Xxxxxx, on behalf of the applicable ETF Series, is obligated to deliver to NSCC on the settlement date the required type and amount of Redemption Securities to redeem the Creation Units of the applicable ETF Series. It shall be the responsibility of the Trust and each ETF Series to maintain in the custody account the required type and amount of Redemption Securities for the redemption of Creation Units of each ETF Series. Should the custody account of an ETF Series for any reason (for example, through the Trust’s participation in a securities lending program on behalf of the ETF Series) have a short position in respect of any of the securities creates comprising the basket of Redemption Securities (a “short delivery position”) with the result that, on settlement date, X.X. J.X. Xxxxxx is unable to deliver a sufficient quantity of the Redemption Securities to NSCC, the Trust acknowledges that X.X. J.X. Xxxxxx shall be obligated under NSCC’s rules to fund the short delivery position with cash pending delivery of the quantity of securities needed to cover the short delivery position. X.X. J.X. Xxxxxx shall be entitled to charge to the account of the applicable ETF Series the amount of cash needed to cover the short delivery position. In the event that X.X. J.X. Xxxxxx advances its own funds to cover an ETF Series short delivery position, X.X. J.X. Xxxxxx, in its discretion, may charge the applicable EFT Series interest on the amount of the advance at the rate that X.X. J.X. Xxxxxx charges for advances of a similar nature to similar customers of X.X. J.X. Xxxxxx, unless X.X. J.X. Xxxxxx and the Trust have mutually agreed in writing upon another rate.. ETF Agency Services Agreement – December 2010 version 2. In the event that X.X. J.X. Xxxxxx shall have advanced its own funds to cover a short delivery position at NSCC for an ETF Series, X.X. J.X. Xxxxxx shall have, to the extent of the amount of the advance, a security interest in the securities that remain in the ETF Series custody account and X.X. J.X. Xxxxxx shall have all the rights and remedies of a secured party under the New York Uniform Commercial Code. Nothing herein or in the Custody Agreement shall be construed to mandate that X.X. J.X. Xxxxxx, acting as Index Receipt Agent for the Trust and each ETF Series, effect redemptions of Creation Units where X.X. J.X. Xxxxxx, acting in good faith, believes that it may not be repaid an advance by the Trust or the ETF Series or otherwise not receive from the ETF Series delivery of the Redemption Securities that are the subject of a short delivery position.

Redemptions through the Clearing Process: Delivery Fails; Posting of Cash. 1. The Trust recognizes that on the redemption of Creation Units of an ETF Series through the Clearing Process X.X. Xxxxxx, on behalf of the applicable ETF Series, is obligated to deliver to NSCC on the settlement date the required type and amount of Redemption Securities to redeem the Creation Units of the applicable ETF Series. It shall be the responsibility of the Trust and each ETF Series to maintain in the custody account the required type and amount of Redemption Securities for the redemption of Creation Units of each ETF Series. Should the custody account of an ETF Series for any reason (for example, through the Trust’s 's participation in a securities lending program on behalf of the ETF Series) have a short position in respect of any of the securities creates comprising the basket of Redemption Securities (a “"short delivery position”") with the result that, on settlement date, X.X. Xxxxxx is unable to deliver a sufficient quantity of the Redemption Securities to NSCC, the Trust acknowledges that X.X. Xxxxxx shall be obligated under NSCC’s 's rules to fund the short delivery position with cash pending delivery of the quantity of securities needed to cover the short delivery position. X.X. Xxxxxx shall be entitled to charge to the account of the applicable ETF Series the amount of cash needed to cover the short delivery position. In the event that X.X. Xxxxxx advances its own funds to cover an ETF Series short delivery position, X.X. Xxxxxx, in its discretion, may charge the applicable EFT ETF Series interest on the amount of the advance at the rate that X.X. Xxxxxx charges for advances of a similar nature to similar customers of X.X. Xxxxxx, unless X.X. Xxxxxx and the Trust have mutually agreed in writing upon another rate. 2. In the event that X.X. Xxxxxx shall have advanced its own funds to cover a short delivery position at NSCC for an ETF Series, X.X. Xxxxxx shall have, to the extent of the amount of the advance, a security interest in the securities that remain in the ETF Series custody account and X.X. Xxxxxx shall have all the rights and remedies of a secured party under the New York Uniform Commercial Code. Nothing herein or in the Custody Agreement shall be construed to mandate that X.X. Xxxxxx, acting as Index Receipt Agent for the Trust and each ETF Series, effect redemptions of Creation Units where X.X. Xxxxxx, acting in good faith, believes that it may not be repaid an advance by the Trust or the ETF Series or otherwise not receive from the ETF Series delivery of the Redemption Securities that are the subject of a short delivery position.

Redemptions through the Clearing Process: Delivery Fails; Posting of Cash. 1. The Trust recognizes that on the redemption of Creation Units of an ETF Series a Fund through the Clearing Process X.X. Xxxxxx, on behalf of the applicable ETF SeriesFund, is obligated to deliver to NSCC on the settlement date the required type and amount of Redemption Securities to redeem the Creation Units of the applicable ETF SeriesFund. It shall be the responsibility of the Trust and each ETF Series Fund to maintain in the custody account the required type and amount of Redemption Securities for the redemption of Creation Units of each ETF SeriesFund. Should the custody account of an ETF Series a Fund for any reason (for example, through the Trust’s participation in a securities lending program on behalf of the ETF SeriesFund) have a short position in respect of any of the securities creates issues comprising the basket of Redemption Securities (a “short delivery position”) with the result that, on settlement date, X.X. Xxxxxx is unable to deliver a sufficient quantity of the Redemption Securities to NSCC, the Trust acknowledges that X.X. Xxxxxx shall be obligated under NSCC’s rules to fund the short delivery position with cash pending delivery of the quantity of securities needed to cover the short delivery position. X.X. Xxxxxx shall be entitled to charge to the account of the applicable ETF Series Fund the amount of cash needed to cover the short delivery position. In the event that X.X. Xxxxxx advances its own funds to cover an ETF Series a Fund short delivery position, X.X. Xxxxxx, in its discretion, may charge the applicable EFT Series Fund interest on the amount of the advance at the rate that X.X. Xxxxxx charges for advances of a similar nature to similar customers of X.X. Xxxxxx, unless X.X. Xxxxxx and the Trust have mutually agreed in writing upon another rate.. ETF Agency Services Agreement – March 2010 version 2. In the event that X.X. Xxxxxx shall have advanced its own funds to cover a short delivery position at NSCC for an ETF Seriesa Fund, X.X. Xxxxxx shall have, to the extent of the amount of the advance, a security interest in the securities that remain in the ETF Series Fund custody account and and[, to the extent that the X.X. Xxxxxx constitutes a secured party under the New York Uniform Commercial Code,] X.X. Xxxxxx shall have all the rights and remedies of a secured party under the New York Uniform Commercial Code. Nothing herein or in the Custody Agreement shall be construed to mandate that X.X. Xxxxxx, acting as Index Receipt Agent for the Trust and each ETF SeriesFund, effect redemptions of Creation Units where X.X. Xxxxxx, acting in good faith, believes that it may not be repaid an advance by the Trust or the ETF Series Fund or otherwise not receive from the ETF Series Fund delivery of the Redemption Securities that are the subject of a short delivery position.

Redemptions through the Clearing Process: Delivery Fails; Posting of Cash. 1. The Trust recognizes that on the redemption of Creation Units of an ETF Series through the Clearing Process X.X. Xxxxxx, on behalf of the applicable ETF Series, is obligated to deliver to NSCC on the settlement date the required type and amount of Redemption Securities to redeem the Creation Units of the applicable ETF Series. It shall be the responsibility of the Trust and each ETF Series to maintain in the custody account the required type and amount of Redemption Securities for the redemption of Creation Units of each ETF Series. Should the custody account of an ETF Series for any reason (for example, through the Trust’s participation in a securities lending program on behalf of the ETF Series) have a short position in respect of any of the securities creates comprising the basket of Redemption Securities (a “short delivery position”) with the result that, on settlement date, X.X. Xxxxxx is unable to deliver a sufficient quantity of the Redemption Securities to NSCC, the Trust acknowledges that X.X. Xxxxxx shall be obligated under NSCC’s rules to fund the short delivery position with cash pending delivery of the quantity of securities needed to cover the short delivery position. X.X. Xxxxxx shall be entitled to charge to the account of the applicable ETF Series the amount of cash needed to cover the short delivery position. In the event that X.X. Xxxxxx advances its own funds to cover an ETF Series short delivery position, X.X. Xxxxxx, in its discretion, may charge the applicable EFT ETF Series interest on the amount of the advance at the rate that X.X. Xxxxxx charges for advances of a similar nature to similar customers of X.X. Xxxxxx, unless X.X. Xxxxxx and the Trust have mutually agreed in writing upon another rate. 2. In the event that X.X. Xxxxxx shall have advanced its own funds to cover a short delivery position at NSCC for an ETF Series, X.X. Xxxxxx shall have, to the extent of the amount of the advance, a security interest in the securities that remain in the ETF Series custody account and X.X. Xxxxxx shall have all the rights and remedies of a secured party under the New York Uniform Commercial Code. Nothing herein or in the Custody Agreement shall be construed to mandate that X.X. Xxxxxx, acting as Index Receipt Agent for the Trust and each ETF Series, effect redemptions of Creation Units where X.X. Xxxxxx, acting in good faith, believes that it may not be repaid an advance by the Trust or the ETF Series or otherwise not receive from the ETF Series delivery of the Redemption Securities that are the subject of a short delivery position.