UNITED STATES OIL FUND, LP MARKETING AGENT AGREEMENT
Exhibit
10.2
MARKETING
AGENT AGREEMENT (the “Agreement”) made as of March 13, 2006, by and between
United States Oil Fund, LP, a Delaware limited partnership (the “Fund”),
Victoria Bay Asset Management, LLC, a Delaware limited liability company, as
General Partner of the Fund (the “General Partner”) and ALPS Distributors, Inc.,
a Colorado corporation (the “Marketing Agent”).
WITNESSETH:
WHEREAS,
the Fund is governed by the Limited Partnership Agreement dated May 12, 2005, to
be amended as of the date on which the first Creation Basket (as defined below)
is purchased (such agreement as it will be amended, the “Partnership Agreement”)
between the General Partner and the limited partners of the Fund;
WHEREAS,
the General Partner, on behalf of the Fund, has filed with the U.S. Securities
and Exchange Commission (the “Commission” or “SEC”) a registration statement on
Form S-1 (Registration No. 333-124950) and amendments thereto, including as part
thereof a prospectus (the “Prospectus”), under the Securities Act of 1933, as
amended (the “1933 Act”), the forms of which have heretofore been delivered to
the Marketing Agent;
WHEREAS,
as described in the Fund’s Prospectus and the authorized purchaser agreements to
be entered into by the General Partner and certain broker dealers from time to
time including the agreement with KV Execution Specialists, LLC dated March 13,
2006, in the form attached hereto as Exhibit A (each such agreement, an
“Authorized Purchaser Agreement”), units of fractional undivided beneficial
interest in and ownership of the limited partnership (the “Units”) may be
created or redeemed by the Authorized Purchaser in aggregations of one hundred
thousand (100,000) Units (each aggregation, a “Creation Basket” or “Redemption
Basket,” respectively; collectively, “Baskets”); and
WHEREAS,
pursuant to the Partnership Agreement, the General Partner wishes to retain the
Marketing Agent to provide certain assistance with respect to the marketing of
the Units and in connection with the creation or redemption of the
Baskets;
NOW,
THEREFORE, in consideration of the mutual covenants contained in this Agreement,
the General Partner and the Marketing Agent hereby agree as
follows:
SECTION
1
DEFINITIONS
1.1 Definitions.
In addition to the other terms which are defined in this Agreement, the
following terms shall have the following meanings assigned to them. All other
capitalized terms used herein, but not otherwise defined herein, shall have the
meanings assigned to such terms in the Partnership Agreement.
“Authorized Purchaser” means the
broker-dealer who enters into an Authorized Purchaser Agreement with the General
Partner, including the initial Authorized Purchaser, KV Execution Services,
LLC.
“Business Day” means any day other than
a day on which the American Stock Exchange, the New York Mercantile Exchange or
the New York Stock Exchange is closed for regular trading.
“Control” means, with respect to any
Person, the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.
“Governmental Entity” means any
supranational, national, state, local, foreign, political subdivision, court,
administrative agency, commission or department or other governmental authority
or instrumentality.
“Law” means any law, statute, treaty,
rule, directive, regulation or guideline or Order of any Governmental
Entity.
“Orders” means judgments, writs,
decrees, compliance agreements, injunctions or orders of any Governmental Entity
or arbitrator.
“Person” shall be construed broadly and
shall include an individual, a partnership, a corporation, a limited liability
company, an association, a joint stock company, a trust, a joint venture, an
unincorporated organization or another entity, including a Governmental Entity
(or any department, agency or political subdivision thereof).
“Preliminary Prospectus” means 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.
“Prospectus” means, except when
otherwise specified, the prospectus, in the form filed by the General Partner on
behalf of the Fund with the Commission on or before the second business day
after the date hereof (or such earlier time as may be required under the 0000
Xxx) or, if no such filing is required, the form of final prospectus included in
the Registration Statement at the time it became effective.
“Representative” means officers,
directors, employees, agents, attorneys, accountants and financial advisors of a
Person, as the case may be.
“Registration Statement” means, except
when otherwise specified, the Fund’s registration statement on Form S-1 (File
No. 333-124950) filed by the General Partner with the Commission as amended when
it becomes effective under the 1933 Act, including all documents filed as a part
thereof.
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SECTION
2
REPRESENTATIONS
AND WARRANTIES
OF THE
GENERAL PARTNER
2.1 Representations
and Warranties of the General Partner. The General Partner, on its own behalf
and in its capacity as General Partner of the Fund, represents and warrants to,
and agrees with, the Marketing Agent that:
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(a)
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At
the time of purchase of a Creation Basket by an Authorized Purchaser under
the Authorized Purchaser Agreement, the Registration Statement shall have
become effective and no stop order of the SEC with respect thereto has
been issued and no proceedings for such purpose has been instituted or, to
the General Partner’s knowledge after due inquiry, is contemplated by the
SEC; any Preliminary Prospectus provided to prospective investors, at the
time of filing thereof, complied in all material respects to the
requirements of the 1933 Act and the last Prospectus distributed in
connection with the offering of the Units purchased by the Authorized
Purchaser did not, as of its date, and 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 and will comply when it becomes effective
and at the time of purchase of a Creation Basket by an Authorized
Purchaser, in all material respects with the requirements of the 1933 Act
and the Prospectus will comply, as of its date and at the time of purchase
of a Creation Basket by an Authorized Purchaser, 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 and will be so described or filed; the
conditions to the use of Form S-1 have been satisfied; the Registration
Statement does not and will not when it becomes effective and at the time
of purchase of a Creation Basket by an Authorized Purchaser 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 will not, as of its date and at the time
of purchase of the Creation Baskets by the Authorized Purchaser, 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 any Preliminary
Prospectus, the Registration Statement or any Prospectus in reliance upon
and in conformity with information concerning the Marketing Agent and
furnished in writing by or on behalf of the Marketing Agent to the General
Partner expressly for use in the Registration Statement or such
Prospectus; and the General Partner has not distributed nor will
distribute any offering material in connection with the offering or
creation of the Baskets by the Authorized Purchaser other than any
Preliminary Prospectus provided to prospective investors, the Registration
Statement or the Prospectus;
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(b)
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as
of the date of this Agreement, and as of the time of purchase of a
Creation Basket by an Authorized Purchaser, respectively, the statement of
financial position as set forth in the section of the Registration
Statement and the Prospectus entitled “Financial Condition of USOF”
accurately reflects the financial condition of the Fund as of the date
specified in such statement of financial
position;
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(c)
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at
the time of purchase of a Creation Basket by an Authorized Purchaser, the
Fund has been duly formed and is validly existing as a limited partnership
under the laws of the State of Delaware, as described in the Registration
Statement and the Prospectus;
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(d)
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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;
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(e)
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each
of the Fund and the General Partner is duly qualified and is in good
standing in each jurisdiction where the conduct of its business requires
such qualification;
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(f)
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at
the time of purchase of a Creation Basket by an Authorized Purchaser, the
Units in a Creation Basket will have been duly and validly authorized and,
when issued and delivered against payment therefor, will be duly and
validly issued, fully paid and non-assessable and free of statutory and
contractual preemptive rights, rights of first refusal and similar
rights;
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(g)
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at
the time of purchase of a Creation Basket by an Authorized Purchaser, the
Units will 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, except as set forth in the Partnership Agreement as in
effect at that time;
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(h)
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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;
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(i)
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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 respective 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 Units in Creation Baskets to the Authorized
Purchaser and the consummation of the transactions contemplated hereby
will 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;
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(j)
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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 the Units other than registration of the Units under the 1933 Act
and the registration of the General Partner as a Commodity Pool Operator
with the National Futures Association (“NFA”) under the Commodities
Exchange Act (“CEA”) and the filing of the Prospectus with the NFA, which
has been or will be effected, and any necessary qualification under the
securities or blue sky laws of the various jurisdictions in which the
Units are being offered or any requirements for listing under the rules
and regulations of the American Stock Exchange
(“AMEX”);
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(k)
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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 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 units 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;
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(l)
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the
General Partner 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 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;
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(m)
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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;
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(n)
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except
as set forth in the Registration Statement and the Prospectus, there are
no actions, suits, claims, investigations or proceedings pending or
threatened or, to the General Partner’s knowledge after due inquiry,
contemplated to which the General Partner, or (to the extent that is or
could be material in the context of the offering and sale of the Baskets
to the Authorized Purchaser) 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;
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(o)
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Xxxxxx,
LLC, whose report on the audited financial statements of the Fund is filed
with the Commission as part of the Registration Statement and the
Prospectus, are independent public accountants as required by the 1933
Act;
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(p)
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the
audited financial statement 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;
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(q)
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Subsequent
to the respective dates as of which information is given in the
Registration Statement and the Prospectus, and prior to the purchase by
the Authorized Purchaser of the Baskets, there has not been (i) any
material adverse change, (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, which is material to the Fund, (iv) any change in the
outstanding indebtedness of the General Partner or the Fund or (v) any
dividend or distribution of any kind declared, paid or made on the
Units;
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(r)
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the
Fund is not and, after giving effect to the offering and sale of the
Baskets, will not be an “investment company” or an entity “controlled” by
an “investment company,” as such terms are defined in the Investment
Company Act of 1940, as amended (the “Investment Company
Act”);
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(s)
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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) except as set
forth in the Registration Statement and the Prospectus, 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’s 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; (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; (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 (vii) to the knowledge of the General
Partner or the Fund, there is no prior art that may render any patent
application licensed to the General Partner
unpatentable;
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(t)
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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;
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(u)
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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;
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(v)
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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 of 1934, as amended (the “Exchange
Act”), giving effect to the rules and regulations, and SEC staff
interpretations 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; and any material weaknesses in internal
Controls have been identified for the Fund’s
auditors;
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(w)
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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
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(x)
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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; and to
the General Partner’s knowledge after due inquiry, there are no
affiliations or associations between any member of the AMEX and any of the
General Partner’s officers, directors or 5% or greater securityholders,
except as may be set forth in the Registration Statement and the
Prospectus.
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In
addition, any certificate signed by any officer of the General Partner and
delivered to the Marketing Agent or counsel for the Marketing Agent in
connection with the offering of the Units shall be deemed to be a representation
and warranty by the General Partner as to matters covered thereby, to the
Marketing Agent.
SECTION
3
REPRESENTATIONS
OF THE MARKETING AGENT
The
Marketing Agent represents and warrants and covenants the
following:
3.1. The
Marketing Agent (a) is either (i) registered as a broker-dealer under the
Exchange Act, and is a member in good standing of the National Association of
Securities Dealers, Inc. (the “NASD”), or (ii) 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; and (b) has all
other 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 activities as contemplated
by this Agreement. The Marketing Agent will maintain any such registrations,
qualifications and membership in good standing and in full force and effect
throughout the term of this Agreement. The Marketing Agent will comply with all
applicable federal laws including but not limited to federal securities and
commodities laws, the laws of the states or other jurisdictions concerned, and
the rules and regulations promulgated thereunder, and with the Constitution,
By-Laws and Conduct Rules of the NASD (if it is a NASD member) and, to the
extent applicable, the rules and regulations of the NFA, and is solely
responsible for determining the application of any such laws or regulations in
all cases at its own expense. The Marketing Agent 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;
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3.2. If
the Marketing Agent 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 3.1 above, the Marketing Agent 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 1933 Act, and the rules and
regulations promulgated thereunder, and (iii) conduct its business in accordance
with the spirit of the NASD Conduct Rules;
3.3. The
Marketing Agent 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 Marketing Agent is
subject to the requirements of the PATRIOT Act;
3.4. The
Marketing Agent agrees to comply with the prospectus delivery and disclosure
requirements of the 1933 Act, as well as the disclosure delivery requirements
under the CEA;
3.5. The
Marketing Agent (i) has been duly organized and is validly existing as a
corporation in good standing under the laws of the State of Colorado, with full
power and authority to conduct its business and has all requisite power and
authority to execute and deliver this Agreement and (ii) is duly qualified and
is in good standing in each jurisdiction where the conduct of its business
requires such qualification; and
3.6. This
Agreement has been duly authorized, executed and delivered by the Marketing
Agent and constitutes the valid and binding obligations of the Marketing Agent,
enforceable against the Marketing Agent in accordance with its
terms.
SECTION
4
EXCLUSIVE
MARKETING AGENT AND STRUCTURE OF THE FUND
4.1 Appointment.
The General Partner hereby appoints the Marketing Agent as the exclusive
marketing agent for Units on the terms and for the periods set forth in this
Agreement, and as set forth in the Authorized Purchaser Agreements as may be
entered into from time to time. The Marketing Agent hereby accepts
such appointment and agrees to act in such capacity hereunder.
4.2 Name
of the Fund; License. For the term of this Agreement, the General Partner shall
cause the name of the Fund to be “United States Oil Fund, LP”
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4.3
Marketing Agent Fee. The Marketing Agent shall be paid by the
General Partner for the services of the Marketing Agent as marketing agent to
the Fund hereunder, a fee for its services hereunder, calculated daily and
payable monthly, as follows:
Fee of $425,000 per annum plus an
incentive fee as follows:
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Zero
basis points on Fund assets from $0 - $500
million
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4
basis points on Fund assets from $500 million - $4
billion
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3
basis points on Fund assets in excess of $4
billion
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The
Marketing Agent will provide an annual marketing budget equal to 33% of the
incentive fee for purposes of marketing the Fund’s Units. The above
fees do not include the following expenses, which will be billed back to the
General Partner: cost of placing advertisements in various periodicals; web
construction and development; or the printing and production of various
marketing materials.
4.4 Expenses.
Except as otherwise expressly provided in this Agreement or agreed to in writing
by the parties, each party hereto shall bear its own fees and expenses incurred
in connection with this Agreement and the transactions contemplated hereby and
thereby (including, without limitation, the legal, accounting and due diligence
fees, costs and expenses incurred by such party).
SECTION
4
COVENANTS
OF THE GENERAL PARTNER
5.1 Certain
Covenants of the General Partner. The General Partner, on its own behalf and in
its capacity as General Partner of the Fund, covenants and agrees:
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(a)
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to
furnish such information as may be required and otherwise to cooperate in
qualifying the Units for offering and sale under the securities or blue
sky laws of such states and foreign jurisdictions as the Marketing Agent
may reasonably designate and to maintain such qualifications in effect so
long as the Marketing Agent may request during the term of this Agreement;
provided that the Fund shall not be required to qualify as a foreign
corporation or to consent to the service of process under the laws of any
such jurisdiction (except service of process with respect to the offering
and sale of the Units); and to promptly advise the Marketing Agent of the
receipt by the General Partner or the Fund of any notification with
respect to the suspension of the qualification of the Units for sale in
any jurisdiction or the initiation or threatening of any proceeding for
such purpose;
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(b)
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to
take all necessary action to register the Units under the 1933 Act in
order to sell the initial Creation Baskets and take, from time to time,
such steps, including payment of the related filing fees, as may be
necessary to register additional Units under the 1933 Act to the end that
all Units sold in additional Creation Baskets will be properly registered
under the 1933 Act and to keep the Registration Statement effective and
current during the term of this
Agreement;
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(c)
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to
make available to the Marketing Agent, as soon as practicable after the
Registration Statement becomes effective, and thereafter from time to
time, furnish to the Marketing Agent, as many copies of the Prospectus (or
of the Prospectus as amended or supplemented if any amendments or
supplements have been made thereto after the effective date of the
Registration Statement) as the Marketing Agent may request for the
purposes contemplated by the 1933
Act;
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(d)
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to
advise the Marketing Agent promptly and, if requested by the Marketing
Agent, to confirm such advice in writing when the Registration Statement
and any post-effective amendment thereto has become effective, and upon
receipt of request from the Marketing Agent therefore, to file a
post-effective amendment removing any reference to the Marketing Agent
thereunder;
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(e)
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to
prepare, at the expense of the Fund, such amendments or supplements to the
Registration Statement or the Prospectus and to file such amendments or
supplements with the Commission, when and as required, by the 1933 Act,
the Exchange Act, and the rules and regulations of the Commission
thereunder, including if requested by the Marketing Agent; to advise the
Marketing Agent promptly of any proposal to amend or supplement the
Registration Statement or the Prospectus and to provide the Marketing
Agent and the Marketing Agent’s counsel copies of any such documents for
review and comment within a reasonable amount of time prior to any
proposed filing and to file no such amendment or supplement to which the
Marketing Agent or its counsel shall reasonably object in writing; and to
advise the Marketing Agent promptly, confirming such advice in writing, of
any request by the Commission for amendments or supplements to the
Registration Statement or the Prospectus or for additional information
with respect thereto, or of notice of institution of proceedings for, or
the entry of a stop order suspending the effectiveness of the Registration
Statement and, if the Commission should enter a stop order suspending the
effectiveness of the Registration Statement, to use its best efforts to
obtain the lifting or removal of such order as soon as
possible;
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(f)
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to
file promptly all reports and any information statement required to be
filed by the Fund with the Commission in order to comply with the Exchange
Act and the CEA subsequent to the date of the Prospectus and for so long
as the term of this Agreement; and to provide the Marketing Agent and the
Marketing Agent’s counsel with a copy of such reports and statements and
other documents to be filed by the Fund pursuant to Section 13, 14 or
15(d) of the Exchange Act (excluding filings under Rule 12b-25) and under
17 C.F.R. §4.22 during such period for review and comment within a
reasonable amount of time prior to any proposed filing and to file no such
amendment or supplement to which the Marketing Agent or its counsel shall
reasonably object in writing;
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11
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(g)
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if
necessary or appropriate, to file a registration statement pursuant to
Rule 462(b) under the 1933 Act;
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(h)
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to
advise the Marketing Agent 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 such 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, subject to Section 4.1(d) hereof, to prepare and furnish, at the
expense of the Fund, to the Marketing Agent promptly such amendments or
supplements to such Prospectus as may be necessary to reflect any such
change;
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(i)
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to
furnish to the Fund’s Unitholders as soon as practicable after the end of
each fiscal year an annual report (including a balance sheet and
statements of income and cash flow of the Fund for such fiscal year,
accompanied by a copy of the certificate or report thereon of nationally
recognized independent certified public
accountants);
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(j)
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to
furnish to the Marketing Agent a copy the Registration Statement, as
initially filed with the Commission, and of all amendments thereto
(including all exhibits thereto);
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(k)
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to
(1) furnish to the Marketing Agent promptly during the term of this
Agreement (i) copies of any reports, proxy statements, or other
communications which are sent to the Fund’s Unitholders or shall from time
to time publish or publicly disseminate, (ii) copies of all annual,
quarterly and current reports filed with the Commission on Forms 10-K,
10-Q and 8-K, or such other similar forms as may be designated by the
Commission, (iii) copies of documents or reports filed with AMEX, (iv)
copies of documents or reports filed with the NFA and with the Commodity
Futures Trading Commission, and (v) such other information as the
Marketing Agent may reasonably request regarding the Fund; and (2) make
available for inspection by the Marketing Agent, its attorneys,
accountants and other advisors or agents, all financial and other records,
pertinent corporate documents and properties, and cause the officers,
directors and employees of the General Partner and independent accountants
to supply all information reasonably requested by the Marketing Agent, its
attorneys, accounts and other advisors and
agents;
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(l)
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to
use its best efforts to cause the Units to be listed on the
AMEX;
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(m)
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to
furnish to the Marketing Agent (i) at the time of the purchase of the
initial Creation Basket by the Initial Authorized Purchaser and
(ii) at such other times as the Marketing Agent reasonably
requests, which may include when the Registration Statement or the
Prospectus is amended or supplemented, and an opinion of Xxxxxxxxxx,
Xxxxxx & Xxxxxxx LLP, counsel for the General Partner, addressed to
the Marketing Agent and substantially in the form attached hereto as
Exhibit B;
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12
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(n)
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to
cause Xxxxxx, LLC to deliver to the Marketing Agent (i) at the time of the
effectiveness of the purchase of the Baskets by the Authorized Purchaser
and (ii) at each time (A) the Registration Statement or the Prospectus is
amended or supplemented by the filing of a post-effective amendment, (B) a
new Registration Statement is filed to register additional Units in
reliance on Rule 429, and there is financial information incorporated by
reference into the Registration Statement or the Prospectus, letters dated
such dates and addressed to the Marketing Agent, 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;
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(o)
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to
deliver to the Marketing Agent (i) at the time of the effectiveness of the
purchase of a Creation Basket by an Authorized Purchaser , (ii) at each
time the Registration Statement or the Prospectus is amended or
supplemented, (iii) at the time of the effectiveness of the purchase of a
Basket by an Authorized Purchaser, (iv) at each time the Registration
Statement or the Prospectus files any report, statement or other document
pursuant to Section 13, 14 or 15(d) of the Exchange Act (excluding filings
required by Rule 12b-25), and (iv) at such other times as the Marketing
Agent reasonably requests, an officer’s certificate in the form attached
as Exhibit D hereto;
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(p)
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to
furnish to the Marketing Agent (i) at the time of the effectiveness of the
purchase of a Creation Basket by an Authorized Purchaser and (ii) at each
time (A) the Registration Statement or the Prospectus is amended or
supplemented, (iii) at each time the Fund files any report, statement or
other document pursuant to Section 13, 14 or 15(d) of the Exchange Act
(excluding filings required by Rule 12b-25), and (iv) at such other times
as the Marketing Agent reasonably requests, such other documents and
certificates as of such dates as the Marketing Agent may reasonably
request; and
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(q)
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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.
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For the purposes of this Section 4.1,
the term “Registration Statement” shall mean the Registration Statement as
amended or supplemented from time to time to and including the date as of which
the relevant representation is made, and the term “Prospectus” shall mean the
Prospectus as amended or supplemented from time to time to and including the
date as of which the relevant covenant is made.
13
SECTION
5
MARKETING
PLAN DEVELOPMENT
AND
MARKETING AGENT COVENANTS
5.1 Pre-Launch
Development.
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(a)
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The
General Partner and the Marketing Agent will develop the Fund and its
marketing plan prior to the effective date of the Registration Statement
in accordance with the provisions of this Section 5.1 and the marketing
strategy as described in Exhibit C.
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(b)
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The
General Partner and the Marketing Agent will use their commercially
reasonable efforts to commit sufficient resources to finalize the
Registration Statement and the governing documents of the Fund and the
Fund’s service providers, communicate with the Commission to obtain
approval of the Registration Statement and communicate with the AMEX to
obtain approval of the listing of the Units on the
AMEX.
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5.2 Post-Launch
Activities.
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(a)
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The
General Partner and the Marketing Agent will market the Fund and the Units
on an ongoing basis after the Registration Statement is declared effective
and the Units have been listed on the AMEX in accordance with the
provisions of this Section 5.2.
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(b)
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Subject
to necessary regulatory approvals and compliance with all applicable legal
and regulatory requirements, the Marketing Agent
shall:
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(i)
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in
good faith, and subject to existing market conditions, use
commercially-reasonable efforts to market the Fund;
and
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(ii)
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include
oil in strategic and tactical research of the Marketing
Agent.
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(c)
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The
Marketing Agent shall provide the General Partner with copies of all
written marketing materials distributed by it connected with the
Fund.
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(d)
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The
Marketing Agent shall process orders for Baskets as set forth in the
Authorized Purchaser Agreement.
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5.3 Joint
Reviews.
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(a)
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In
order to oversee the pre-launch development and post-launch performance of
the Fund on a regular basis, the parties
shall:
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(i)
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conduct
at least once each calendar quarter in which the annual review described
in clause (ii) below is not conducted, a review of the performance of the
Fund, with such review to include the senior management of the General
Partner and the senior management of the Marketing Agent and to cover such
topics as asset growth/decline, sales strategy, new business efforts, new
product initiatives and stock exchange trading activity;
and
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14
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(ii)
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conduct
at least once each calendar year, a review of the overall performance of
the Fund, which will include a review of the most recent quarterly period,
with such review to include the chief executive officer of the General
Partner and senior management of the Marketing Agent and to cover such
topics as strategic direction and new business
initiatives.
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(b)
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Prior
to each of the quarterly and annual reviews which will take place pursuant
to this Section 5.3, the General Partner and the Marketing Agent will
jointly prepare and circulate among the parties, a report covering the
quarterly or annual period which is the subject of each review, with such
report to cover such topics described
above.
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5.4 Information
Provided to Marketing Agent. In performing its duties hereunder, the Marketing
Agent shall be entitled to rely on and shall not be responsible in any way for
information provided to it by the General Partner and its service providers and
shall not be liable or responsible for the errors and omissions of such service
providers, provided that the foregoing shall not be construed to protect the
Marketing Agent against any liability to the General Partner or the Fund to
which the Marketing Agent 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.
5.5 Conditions
to Marketing Agent’s Obligations. The obligations of the Marketing Agent
hereunder are subject in the Marketing Agent’s discretion, to the condition that
(i) all representations and warranties and other statements of the General
Partner herein or delivered pursuant hereto be true and correct (a) at and as of
the date made, (b) at the time of the purchase of the Baskets by the Authorized
Purchaser, (c) at each time the Registration Statement or the Prospectus is
amended or supplemented, (d) at each time the Fund files any report, statement
or other document pursuant to Section 13, 14 or 15(d) of the Exchange Act
(excluding filings under Rule 12b-25), (e) at each time the Fund issues any
Baskets and (f) at such other times the Marketing Agent reasonably requests, in
each case as though made at and as of such dates, and the General Partner agrees
that all such representations, warranties and other statements are expressly
made on and as of such dates (except, in all cases, that such representations,
warranties and statements relating to the Registration Statement and the
Prospectus shall be deemed to relate to the Registration Statement and the
Prospectus as amended and supplemented to such date) and (ii) the General
Partner shall have performed all of its covenants, agreements and obligations
hereunder theretofore to be performed in all respects. The respective
indemnities, agreements, representations, warranties and other statements by the
General Partner set forth in or made pursuant to this Agreement shall remain in
full force and effect regardless of any investigation (or any statement as to
the results thereof) made by or on behalf of the Marketing Agent or any
controlling person of the Marketing Agent, or the General Partner, or any
officer or director or any controlling person thereof, and shall survive the
execution, delivery, performance and termination of this
Agreement.
15
SECTION
6
INDEMNIFICATION
6.1 Indemnification
of Marketing Agent. The General Partner agrees to indemnify, defend and hold
harmless the Marketing Agent, its partners, stockholders, members, directors,
officers and employees 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 Marketing
Agent or any such person may incur under the 1933 Act, the Exchange Act, the
common law or otherwise, insofar as such loss, damage, expense, liability or
claim arises out of or is based upon:
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(a)
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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 Marketing Agent furnished in writing by or on behalf of the Marketing
Agent to the General Partner expressly for use in such Registration
Statement;
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(b)
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any
untrue statement or alleged untrue statement of a material fact or breach
by the General Partner of any representation or warranty contained in
Section 2 hereof or in any certificate delivered by the General Partner
pursuant to paragraph (o) of Section 4.1
hereof;
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(c)
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the
failure by the General Partner to perform when and as required any
agreement or covenant contained
herein;
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(d)
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any
untrue statement of any material fact contained in any audio or visual
materials provided by the General Partner or based upon written
information furnished by or on behalf of the General Partner including,
without limitation, slides, videos, films or tape recordings used in
connection with the marketing of the
Units;
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(e)
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the
Marketing Agent’s performance of its duties under this Agreement except in
the case of this clause (e), for any loss, damage, expense, liability or
claim resulting from the gross negligence or willful misconduct of the
Marketing Agent; provided, however, that the indemnity agreement contained
in clause (a) above with respect to any amended Preliminary Prospectus
shall not inure to the benefit of the Marketing Agent (or to the benefit
of any person controlling the Marketing Agent) from whom the person
asserting any such loss, damage, expense, liability or claim purchased the
Units which is the subject thereof if the Prospectus corrected any such
alleged untrue statement or omission in any case where the Marketing Agent
was required to send or give a copy of the Prospectus to such person by
the 1933 Act, the General Partner had notified the Marketing Agent of the
amendment or supplement prior to the sending of the written confirmation
of sale and the Marketing Agent failed to send or give a copy of the
Prospectus to such person, unless the failure is the result of
noncompliance by the General Partner with paragraph (c) of Section 4.1
hereof.
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16
In no
case is the indemnity of the General Partner in favor of the Marketing Agent and
such other persons as are specified in this Section 6.1 to be deemed to protect
the Marketing Agent and such persons against any liability to the General
Partner or the Fund to which the Marketing Agent 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
Marketing Agent or any such person in respect of which indemnity may be sought
against the General Partner pursuant to the foregoing paragraph, the Marketing
Agent 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 Marketing Agent
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 Marketing
Agent 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 Marketing Agent 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).
17
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 Marketing Agent 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 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.
6.2 The
Marketing Agent agrees to indemnify, defend and hold harmless each of the Fund,
the General Partner and its partners, Unitholders, 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 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 Marketing Agent 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
Marketing Agent 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 Marketing Agent’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 Marketing Agent in favor of the General Partner to
be deemed to protect the General Partner and such persons against any liability
to the Marketing Agent 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.
18
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
Marketing Agent pursuant to the foregoing paragraph, the General Partner or such
person shall promptly notify the Marketing Agent in writing of the institution
of such Proceeding and the Marketing Agent 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 Marketing Agent shall not relieve the Marketing
Agent 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 Marketing Agent in connection with the
defense of such Proceeding or the Marketing Agent 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
Marketing Agent (in which case the Marketing Agent shall not have the right to
direct the defense of such Proceeding on behalf of the indemnified party or
parties, but the Marketing Agent may employ counsel and participate in the
defense thereof but the fees and expenses of such counsel shall be at the
expense of the Marketing Agent), in any of which events such fees and expenses
shall be borne by the Marketing Agent and paid as incurred (it being understood,
however, that the Marketing Agent 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
Marketing Agent shall not be liable for any settlement of any such Proceeding
effected without the written consent of the Marketing Agent but if settled with
the written consent of the Marketing Agent, the Marketing Agent 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 this 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.
19
6.3 The
indemnity agreements contained in this Section 6 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 Marketing Agent, 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 Marketing
Agent 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, 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 Marketing Agent 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
7
DURATION
7.1 Duration.
This Agreement shall become effective on the date hereof and continue for an
initial term of one (1) year from the date of this Agreement and will include
any renewal term of this Agreement and will last until the expiration of this
Agreement or the earlier termination of this Agreement in accordance with its
terms (the “Term”). This Agreement will automatically be renewed for successive
one (1) year periods unless, no later than thirty (30) calendar days prior to
the end of the then-current Term, either the Marketing Agent, on the one hand,
or the General Partner, on the other hand, elects to terminate this Agreement by
delivering written notice thereof to the other party. Notwithstanding
the foregoing, this Agreement may be terminated by any party upon written notice
to the other parties if (a) the Fund is terminated, (b) any other party becomes
insolvent or bankrupt or files a voluntary petition, or is subject to an
involuntary petition, in bankruptcy or attempts to or makes an assignment for
the benefit of its creditors or consents to the appointment of a trustee or
receiver, provided that the General Partner may not terminate this Agreement
pursuant to this provision if the event relates to the General Partner or the
Fund or (c) any other party willfully and materially breaches its obligations
under this Agreement and such breach has not been cured to the reasonable
satisfaction of the non-breaching party prior to the expiration of ninety (90)
days after notice by the non-breaching party to the breaching party of such
breach.
SECTION
8
CONFIDENTIALITY
8.1 Confidentiality.
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(a)
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The
General Partner and the Marketing Agent 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.
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20
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“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, 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.
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(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:
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(i)
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is
known to such party at the time of disclosure other than as the result of
a breach of this Section 8 by such
party;
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(ii)
|
has
been or becomes publicly known, other than as the result of a breach of
this Section 8 by such party, or has been or is publicly disclosed by the
other party;
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(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
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(iv)
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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.
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(c)
|
The
parties recognize and acknowledge that a breach or threatened breach by a
party of the provisions of this Section 8 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
8.
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(d)
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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.
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21
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(e)
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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.
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SECTION
9
MISCELLANEOUS
9.1 No
Third Party Beneficiaries. This Agreement shall not confer any rights or
remedies upon any Person other than the parties hereto, the indemnities referred
to in this Agreement and their respective successors and assigns.
9.2 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.
9.3 Amendment
and Modification. This Agreement may be amended, modified or supplemented only
by a written instrument executed by all the parties.
9.4 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.
9.5 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.
9.6 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 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.
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9.7 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):
(a) if to
General Partner, to:
Victoria Bay Asset Management,
LLC
x/x Xxxxxxxx X. Xxxxxx
X.X. Xxx 0000
Xxxxxx,
XX 00000
(b) if to
the Marketing Agent, to:
ALPS Distributors, Inc.
0000 Xxxxxxxx, Xxxxx 0000
Xxxxxx, XX 00000
Attention: General Counsel
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.
9.8 Governing
Law; Jurisdiction.
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(a)
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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.
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23
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(b)
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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 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.
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The
provisions of this Section 9.8 shall survive any termination of this Agreement,
in whole or in part.
9.9 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 Marketing
Agent, 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.
9.10 Force
Majeure. Neither party will be liable to any other party for any delay or
failure to perform its obligations under this Agreement (except for the payment
of money) if such delay or failure arises from or is due to any cause or causes
beyond the reasonable control of the party affected which impedes, delays or
aggravates any obligation under this Agreement, including, without limitation,
acts of God, acts of any Governmental Entity, labor disturbances, act of
terrorism or act of public enemy due to war, the outbreak or escalation of
hostilities, riot, fire, flood, civil commotion, insurrection, severe or adverse
weather conditions, power failure or computer or communications line
failure.
9.11 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.
9.12 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.
9.13 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.
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IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the
day and year first written above.
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VICTORIA
BAY ASSET MANAGEMENT, LLC
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By:
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/s/ Xxxxxx Xxx
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Name:
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Xxxxxx
Xxx
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Title:
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Management
Director
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By:
Victoria Bay Asset Management, LLC, as General Partner
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By:
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/s/ Xxxxxx Xxx
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Name:
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Xxxxxx
Xxx
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Title:
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Management
Director
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ALPS
DISTRIBUTORS, INC.
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By:
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/s/ Xxxxxx X. Xxxxx
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Name:
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Xxxxxx
X. Xxxxx
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Title:
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President
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25
