Exhibit 1.01
THE ▇▇▇▇▇▇▇ ▇▇▇▇▇ FUTURESACCESSSM PROGRAM
SELLING AGREEMENT
Private Placement of Limited Liability Company Units
Effective as of October 31, 2004
▇▇▇▇▇▇▇ ▇▇▇▇▇ ALTERNATIVE INVESTMENTS LLC
Manager
▇▇▇▇▇▇▇ LYNCH, PIERCE, ▇▇▇▇▇▇ & ▇▇▇▇▇ INCORPORATED
Selling Agent
THE ▇▇▇▇▇▇▇ ▇▇▇▇▇ FUTURESACCESSSM PROGRAM
SELLING AGREEMENT
TABLE OF CONTENTS
Section Page
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Section 1. Representations and Warranties of the MANAGER.........2
Section 2. Offering and Sale of Units............................4
Section 3. Covenants of the MANAGER..............................7
Section 4. OffERing Materials....................................7
Section 5. Conditions of Closing.................................7
Section 6. Indemnification and Exculpation.......................8
Section 7. Status of Parties....................................10
Section 8. Representations, Warranties and Agreements to Survive
Delivery.............................................10
Section 9. Termination..........................................10
Section 10. Notices and Authority to Act........................10
Section 11. Parties.............................................10
SECTION 12. GOVERNING LAW.......................................10
Section 13. Requirements of Law.................................11
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APPENDIX: SCHEDULE OF COMPANIES dated as of October 31, 2004
THE ▇▇▇▇▇▇▇ ▇▇▇▇▇ FUTURESACCESSSM PROGRAM
Private Placement of Limited Liability Company Units
SELLING AGREEMENT
as of October 31, 2004
▇▇▇▇▇▇▇ LYNCH, PIERCE, ▇▇▇▇▇▇ & ▇▇▇▇▇ INCORPORATED
▇▇▇▇▇▇▇ ▇▇▇▇▇ World Headquarters
North Tower
World Financial Center
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Dear Sirs:
Your affiliate, ▇▇▇▇▇▇▇ ▇▇▇▇▇ Alternative Investments LLC, a
Delaware limited liability company (referred to herein in its individual
capacity and as manager as the "Manager" or "MLAI"), has caused the formation
of a group of managed futures funds comprising the ▇▇▇▇▇▇▇ ▇▇▇▇▇
FuturesAccessSM Program (the "Program") which, at the effective date hereof,
consist of the four limited liability companies formed pursuant to the Limited
Liability Company Act of the State of Delaware (the "DLLCA") and listed in the
Schedule of Companies (the "Schedule") attached hereto as the Appendix. Each
company within the Program is hereinafter referred to as a "FuturesAccess
Fund." It is intended that the terms and conditions of this Selling Agreement
(the "Agreement") shall apply to and be binding upon any company which
subsequently becomes a FuturesAccess Fund (each a "New FuturesAccess Fund")
and, likewise, shall cease to apply to any company which ceases, for whatever
reason, to be a FuturesAccess Fund (each an "Old Futures Access Fund"). It is
hereby agreed therefore that, in the event of any New FuturesAccess Fund or
Old FuturesAccess Fund joining or leaving the Program as the case may be, the
Schedule shall be amended accordingly with the intent and effect that (from
the effective date on which such Schedule is acknowledged and accepted on
behalf of the FuturesAccess Funds specified therein, the Manager and ▇▇▇▇▇▇▇
Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated) any such New FuturesAccess Fund
shall become, and any such Old FuturesAccess Fund shall cease to be, a party
to this Agreement. Upon becoming a party hereto, a New FuturesAccess Fund
shall agree to observe, perform and be bound by all the terms of this
Agreement which are capable of applying to it and which have not been
performed as at that time.
The FuturesAccess Funds (hereinafter referred to, individually, as
a "Company," and, collectively, as the "Companies") will operate as
single-advisor managed futures funds to which professional trading advisors
("Trading Advisors") unaffiliated with MLAI will provide trading advice on an
independent contractor basis.
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Capitalized terms used herein, unless otherwise indicated, shall
have the meanings attributed to them in the Companies' Part One (A)
Confidential Program Disclosure Document: FuturesAccessSM Program General
Information, Part One (B) Confidential Program Disclosure Document: Trading
Advisor Information and the Part Two Confidential Program Disclosure Document:
Statement of Additional Information, as amended or supplemented from time to
time (collectively, the "Memorandum"). Defined terms used herein shall have
the meaning of both the singular and the plural unless otherwise specified.
Section 1. Representations and Warranties of the Manager. The
Manager represents and warrants to the Selling Agent as follows:
(a) Each Company has been formed pursuant to a Certificate of
Formation (each a "Certificate of Formation") and a Limited Liability
Company Operating Agreement (each an "Operating Agreement") which
provide for the subscription for and sale of each Company's units of
limited liability company interest ("Units") in classes; all action
required to be taken by the Manager and each Company as a condition to
the sale of the Units to subscribers who qualify as "Accredited
Investors" within the meaning of the Securities Act of 1933, as amended
(the "1933 Act") has been, or prior to the Initial and each Additional
Closing Time (as defined in Section 2 hereof) will have been taken, and,
upon payment of the consideration therefor specified in all accepted
FuturesAccess Program Subscription and Exchange Agreements and Signature
Pages thereto (collectively, the "Subscription Agreements"), the Units
will constitute valid limited liability company interests in a Company.
(b) Each Company is a limited liability company duly organized
pursuant to a Certificate of Formation and the DLLCA and validly
existing under the laws of the State of Delaware with full power and
authority to conduct its business and operations, as described in its
Memorandum; each Company has received (or will receive prior to the
Initial Closing Time) a certificate of authority to do business in the
State of New Jersey.
(c) The Manager is duly organized and validly existing and in good
standing as a limited liability company under the laws of the State of
Delaware and in good standing as a foreign limited liability company
under the laws of the State of New Jersey and in each other jurisdiction
in which the nature or conduct of its business requires such
qualification and the failure to so qualify would materially adversely
affect the Companies' or the Manager's ability to perform its
obligations hereunder.
(d) Each Company and the Manager have full limited liability
company power and authority under applicable law to perform their
respective obligations under an Operating Agreement, an Escrow Agreement
relating to the offering of the Units (each an "Escrow Agreement"), the
Customer Agreement ("Customer Agreement") and the Advisory Agreement
("Advisory Agreement") relating to the trading of commodity interests
and this Agreement, as described in the Memorandum.
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(e) The Memorandum as of its date of issue, the Initial Closing
Time and at each Additional Closing Time will not contain an untrue
statement of a material fact or omit to state a material fact necessary
to make the statements therein, in light of the circumstances under
which such statements were made, not misleading. This representation and
warranty shall not, however, apply to any statement or omission in the
Memorandum made in reliance upon and in conformity with information
relating to the Trading Advisors and furnished or approved in writing by
the Trading Advisors; it being acknowledged that each of the Trading
Advisors have approved the information relating to such party or its
principals, as set forth in the Memorandum.
(f) Since the respective dates as of which information is given in
the Memorandum., there has not been any material adverse change in the
condition (financial or otherwise), business or prospects of the Manager
or the Companies, whether or not arising in the ordinary course of
business.
(g) An Operating Agreement, an Escrow Agreement, a Customer
Agreement, an Advisory Agreement and this Agreement have each been duly
and validly authorized, executed and delivered by the Manager on behalf
of each Company, and each constitutes a valid, binding and enforceable
agreement of each Company, in accordance with its terms.
(h) The execution and delivery of the Operating Agreements, the
Escrow Agreement, the Customer Agreement, the Advisory Agreement and
this Agreement, the incurrence of the obligations set forth in each of
such agreements and the consummation of the transactions contemplated
therein and in the Memorandum will not constitute a breach of, or
default under, any instrument by which either the Manager or a Company
is bound or any order, rule or regulation applicable to the Manager or a
Company of any court or any governmental body or administrative agency
having jurisdiction over the Manager or a Company.
(i) There is not pending, or, to the best of the Manager's
knowledge, threatened, any action, suit or proceeding before or by any
court or other governmental body to which the Manager or a Company is a
party, or to which any of the assets of the Manager or a Company is
subject, which is not referred to in the Memorandum and which might
reasonably be expected to result in any material adverse change in the
condition (financial or otherwise), business or prospects of the Manager
or the Company.
(j) The Manager has all federal and state governmental and
regulatory approvals and licenses, and has effected all filings and
registrations with federal and state governmental agencies required to
conduct its business and to act as described in the Memorandum or
required to perform its obligations as described under the Operating
Agreements and this Agreement, and the performance of such obligations
will not contravene or result in a breach of any provision of its
certificate of incorporation, by-laws or any agreement, order, law or
regulation binding upon it.
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(k) The Companies do not require any federal or state governmental
or regulatory approvals or licenses, or need to effect any filings or
registrations with any federal or state governmental agencies in order
to conduct their business, to act as contemplated by the Memorandum and
to issue and sell Units (other than filings relating solely to the
offering of the Units).
(l) Deloitte & Touche LLP are, with respect to the Manager and the
Companies, independent public accountants within the meaning of the 1933
Act and the regulations of the Securities and Exchange Commission
("SEC").
(m) The offer and sale of the Units in the manner contemplated by
this Agreement will be exempt from the registration requirements of the
1933 Act by reason of Regulation D promulgated thereunder.
Section 2. Offering and Sale of Units.
(a) The Selling Agent is hereby granted the exclusive right to
distribute Units. Subject to the performance by the Manager of all its
obligations to be performed hereunder, and to the completeness and
accuracy in all material respects of all the representations and
warranties of the Manager contained herein, the Selling Agent hereby
accepts such agency and agrees on the terms and conditions herein set
forth to use its best efforts to find acceptable subscribers for the
Units as of the beginning of each calendar month.
It is understood that the Selling Agent's agreement to use its best
efforts to find acceptable subscribers for the Units shall not prevent
it from acting as a selling agent or underwriter for the securities of
other issuers which may be offered or sold during the term of this
Agreement. The agency of the Selling Agent hereunder shall continue
until this Agreement is terminated in accordance with the provisions of
this Section or Section 9.
(b) In the event insufficient subscriptions (as described in the
Memorandum) are received prior to the intended close of the initial
offering period, all funds received from subscribers shall be returned
in full, with any interest payable thereon (irrespective of amount) and
without deduction for any escrow or other fee or expense; and thereupon
the Selling Agent's duties as agent and this Agreement shall terminate
without further obligation hereunder on the part of the Selling Agent,
the Manager or the Company.
(c) The Manager shall notify the Selling Agent of the aggregate
number of Units in each Company for which the Manager has received
acceptable subscriptions, and payment of the purchase price for the
Units of such Company may, if the Manager so elects, be made at the
office of the Manager, Princeton Corporate Campus, 800 Scudders Mill
Road, Section 2G, ▇▇▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇ or at such other place as
shall be agreed upon between the Selling Agent and the Manager, at 10:00
A.M., New York time, on the fifth full business day after the day on
which the Manager notifies the Selling Agent of the Units for
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which subscriptions have been accepted or such other day and time as
shall be agreed upon between the Selling Agent and the Manager (the
"Initial Closing Time").
At the Initial Closing Time, all interest earned on subscriptions
while held in escrow will be credited to the relevant FuturesAccess
Fund.
(d) After the Initial Closing Time, the Manager shall notify the
Selling Agent of the aggregate value of Units in each Company for which
the Manager has accepted subscriptions for purchase as of the beginning
of each month for which sufficient subscriptions (as described in the
Memorandum) are received (each additional sale of Units hereinafter
referred to as an "Additional Closing Time").
(e) Initial sales commissions of 1.0% - 2.5% of the amount of each
Company's Class A Unit subscription, and up to 0.50% of each Company's
Class I and Class D Unit subscription, shall be deducted from the
subscription amount. No initial sales commissions will be paid on a
Company's Class C Units.
MLAI will pay to the Selling Agent, at no additional cost to the
Companies or their Members, ongoing compensation on the Units for as
long as such Units remain outstanding. Such ongoing compensation will
equal 1.0%, 0.80%, 2.00% and 0.30% per annum of the average month-end
Net Asset Value per Unit of each Company's Class A, Class I, Class C and
Class D Units, respectively.
Ongoing compensation in respect of each Company's Class A Units
will begin in the thirteenth month, and in the case of all other Units,
immediately after their issuance. Units are issued for such purposes
when they begin to participate in the profits and losses of a Company
(i.e., when a Company begins to participate in the profits and losses of
the applicable Company), not when the related Subscription Agreements
are accepted.
(f) The Selling Agent will use its best efforts to find eligible
persons to purchase the Units as of the intended close of the initial
offering period (as described in the Memorandum) and thereafter on the
terms stated herein and in the Memorandum. It is understood that the
Selling Agent has no commitment with regard to the sale of the Units
other than to use its commercially reasonable efforts. In connection
with the offer and sale of the Units, the Selling Agent represents that
it will not knowingly violate applicable laws, and the rules of the
National Association of Securities Dealers, Commodity Futures Trading
Commission ("CFTC"), the National Futures Association ("NFA"), the SEC,
state securities administrators and any other regulatory body. The
Selling Agent further represents that it has not and will not offer and
sell, or arrange any commitments to purchase, any Units by any form of
general solicitation or general advertising (as those terms are used in
Regulation D promulgated under the ▇▇▇▇ ▇▇▇) or in any manner involving
a public offering (within the meaning of
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Section 4(2) of the Securities Act), or offer and sell or otherwise
negotiate in respect of any security the offering which is or could be
integrated with the sale of Units in a manner that would require
registration of the Units under 1933 Act. The Selling Agent shall not
execute any sales of Units from a discretionary account over which it
has control without prior written approval of the customer in whose name
such discretionary account is maintained.
The Selling Agent agrees not to recommend the purchase of Units to
any subscriber unless the Selling Agent shall have reasonable grounds to
believe, on the basis of information obtained from the subscriber
concerning, among other things, the subscriber's investment objectives,
other investments, financial situation and needs, that the subscriber is
or will be in a financial position appropriate to enable the subscriber
to realize to a significant extent the benefits of a Company, including
tax benefits described in the Memorandum; the subscriber has a
fair-market net worth sufficient to sustain the risks inherent in
participating in the Companies, including loss of investment and lack of
liquidity; the Units are otherwise a suitable investment for the
subscriber; and the subscriber is qualified to purchase Units as
described in the Memorandum.
(g) None of the Selling Agent, the Companies or the Manager shall,
directly or indirectly, pay or award any finder's fees, commissions or
other compensation to any person engaged by a potential investor for
investment advice as an inducement to such advisor to advise the
purchase of Units; provided, however, the normal sales commissions
payable to a registered broker-dealer or other properly licensed person
for selling Units shall not be prohibited hereby.
(h) All payments for subscriptions shall be made by debiting
subscribers' customer securities accounts maintained with the Selling
Agent as described in the Memorandum.
(i) In connection with the offer and sale of the Units, the Manager
will not knowingly violate applicable laws and the rules of the SEC, the
CFTC, the NFA, state securities administrators and any other regulatory
body.
Section 3. Covenants of the Manager.
(a) The Manager will notify the Selling Agent immediately and
confirm such notification in writing of the issuance by the SEC or any
other federal or state regulatory body of any order or decree enjoining
the offering or the use of the then current Memorandum or of the
institution, or notice of the intended institution, of any action or
proceeding for that purpose.
(b) Until termination of this Agreement, the Manager will take all
necessary regulatory steps, make all necessary ongoing regulatory
filings and obtain all necessary regulatory approvals to maintain the
ongoing offering of the Units.
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(c) If any event relating to or affecting the Manager or a Company
shall occur as a result of which it is necessary to amend or supplement
a Company's Memorandum in order to make the Memorandum not materially
misleading in light of the circumstances existing at the time it is
delivered to a subscriber, MLAI and the Company will forthwith prepare
and furnish to the Selling Agent, at the expense of MLAI, a reasonable
number of copies of an amendment or amendments of, or a supplement or
supplements to, the Memorandum which will amend or supplement the
Memorandum so that as amended or supplemented it will not contain an
untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in light of the
circumstances existing at the time the Memorandum is delivered to a
subscriber, not misleading.
Section 4. Offering Materials. The Manager will ensure the printing
and delivery to the Selling Agent of copies of a reasonable number of
copies of the Memoranda and any supplements or amendments thereto, and
of any supplemental sales materials, as necessary from time to time.
Section 5. Conditions of Closing. The obligations of each of the
parties hereunder are subject to the accuracy of the representations and
warranties of the other parties hereto, to the performance by such other
parties of their respective obligations hereunder and to the following further
conditions:
(a) If requested by the Selling Agent, MLAI shall deliver a
certificate to the effect that: (i) the representations and warranties
of MLAI contained herein are true and correct with the same effect as
though expressly made at the Initial Closing Time and in respect of the
Memorandum as in effect at the Initial Closing Time; and (ii) MLAI has
performed all covenants and agreements herein contained to be performed
on its part as of or prior to the Initial Closing Time.
(b) As of the Initial Closing Time, Sidley ▇▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇ LLP,
counsel to the Manager, shall deliver to all the parties hereto its
opinion, in form and substance satisfactory to each of the parties
hereto.
(c) The parties hereto shall have been furnished with such
additional information, opinions, certificates and documents, including
supporting documents relating to parties described in the Memorandum and
letters of representation signed by such parties with regard to
information relating to them and included in the Memorandum as they may
reasonably require for the purpose of enabling them to pass upon the
sale of the Units as herein contemplated and related proceedings, in
order to evidence the accuracy or completeness of any of the
representations or warranties or the fulfillment of any of the
conditions herein contained; and all actions taken by the parties hereto
in connection with the sale of the Units as herein contemplated shall be
reasonably satisfactory in form and substance to Sidley ▇▇▇▇▇▇ ▇▇▇▇▇ &
Wood LLP.
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(d) As of each Additional Closing Time, the parties hereto shall
have been furnished with such information, opinions and certified
documents as the Manager and the Selling Agent may deem to be necessary
or appropriate.
If any of the conditions specified in this Section 5 shall not have
been fulfilled when and as required by this Agreement to be fulfilled, this
Agreement and all obligations hereunder may be canceled by any party hereto by
notifying the other parties hereto of such cancellation in writing or by
telegram at any time at or prior to the Initial Closing Time, and any such
cancellation or termination shall be without liability of any party to any
other party except as otherwise provided in Section 6.
Section 6. Indemnification and Exculpation.
(a) Indemnification by the Manager. The Manager agrees to
indemnify and hold harmless the Selling Agent and each person, if any,
who controls the Selling Agent within the meaning of Section 15 of the
1933 Act, as follows:
(i) against any and all loss, liability, claim, damage and expense
whatsoever arising out of (A) any breach by the Manager of its
representations and warranties or failure of the Manager to comply
with any of its agreements contained herein or any act, omission,
activity or conduct undertaken in connection with this Agreement by
or on behalf of the Manager, except to the extent such loss results
from the negligence or willful misconduct of the Selling Agent or
(B) any untrue statement or alleged untrue statement of a material
fact contained in the Memorandum (or any amendment thereto) or any
omission or alleged omission therefrom of a material fact required
to be stated therein or necessary in order to make the statements
therein not misleading or arising out of any untrue statement or
alleged untrue statement of a material fact contained in the
Memorandum (or any amendment or supplement thereto) or the omission
or alleged omission therefrom of a material fact necessary in order
to make the statements therein, in light of the circumstances under
which they were made, not misleading, unless such untrue statement
or omission or alleged untrue statement or omission was made in
reliance upon and in conformity with information relating to the
Selling Agent or a Trading Advisor or furnished or approved by the
Selling Agent or Trading Advisor as the case may be;
(ii) against any and all loss, liability, claim, damage and expense
whatsoever with respect to each Company to the extent of the
aggregate amount paid in settlement of any litigation, or any
investigation or proceeding by any governmental agency or body,
commenced or threatened, or of any claim whatsoever based upon any
such untrue statement or omission or any such alleged untrue
statement or omission (any settlement to be subject to indemnity
hereunder only if effected with the written consent of the
Manager); and
8
(iii) against any and all expense whatsoever with respect to each
Company (including the fees and disbursements of counsel)
reasonably incurred in investigating, preparing or defending
against litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue statement or omission, or any
such alleged untrue statement or omission, to the extent that any
such expense is not paid under clauses (i) or (ii) above.
In no case shall the Manager be liable under this indemnity agreement
with respect to any claim made against any indemnified party unless the
Manager shall be notified in writing of the nature of the claim within a
reasonable time after the assertion thereof, but failure to so notify
the Manager shall not relieve the Manager from any liability which it
may have otherwise than on account of this indemnity agreement. The
Manager shall be entitled to participate at its own expense in the
defense or, if it so elects within a reasonable time after receipt of
such notice, to assume the defense of that portion of any suit so
brought relating to the Manager's indemnification obligations hereunder,
which defense shall be conducted by counsel chosen by it and
satisfactory to the indemnified party or parties, defendant or
defendants therein. In the event that the Manager elects to assume the
defense of any such suit and retain such counsel, the indemnified party
or parties, defendant or defendants in the suit, shall bear the fees and
expenses of any additional counsel thereafter retained by it or them;
provided, however, that the Manager may, upon the mutual agreement of
the Manager and the indemnified party or parties, bear the fees and
expenses of additional counsel retained by an indemnified party if the
named parties in such suit include both the Manager and the indemnified
party and representation of both the Manager and the indemnified party
would be inappropriate due to actual or potential differing interests
between them or there are defenses available to the indemnified party
that are or would not be available to the Manager. In the event the
Manager assumes the defense of the portion of a suit relating to the
Manager's indemnification obligations hereunder, the Manager will not,
without the prior written consent of the indemnified party, effect any
settlement of such suit, unless such settlement includes a release of
the indemnified party from all liability or claims that are the subject
of such suit.
The Manager agrees to notify the Selling Agent within a reasonable
time of the assertion of any claim in connection with the sale of the
Units against it or any of its officers or directors or any person who
controls the Manager within the meaning of Section 15 of the 1933 Act.
Section 7. Status of Parties. In selling the Units for the
Companies, the Selling Agent is acting solely as an agent for the Companies
and not as a principal. The Selling Agent will use its best efforts to assist
the Companies in obtaining performance by each purchaser whose offer to
purchase Units from a Company has been accepted on behalf of a Company, but
the Selling Agent shall not have any liability to a Company in the event that
any such purchase is not consummated for any reason.
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Section 8. Representations, Warranties and Agreements to Survive
Delivery. All representations, warranties and agreements contained in this
Agreement or contained in certificates of any party hereto submitted pursuant
hereto shall remain operative and in full force and effect, regardless of any
investigation made by, or on behalf of, the Selling Agent, the Manager or any
person who controls any of the foregoing and shall survive the Initial and
each Additional Closing Time in the form restated and reaffirmed as of each
such closing time.
Section 9. Termination. The Manager shall have the right to
terminate this Agreement at any time by giving notice to the Selling Agent,
and the Selling Agent to do so upon 30 calendar days' notice to the Manager.
Section 10. Notices and Authority to Act. All communications
hereunder shall be in writing and, if sent to the Selling Agent, shall be
mailed, delivered or telegraphed and confirmed to it at: ▇▇▇▇▇▇▇ ▇▇▇▇▇ World
Headquarters, North Tower, World ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇,
▇▇▇▇▇-▇▇▇▇; if sent to the Manager or a Company shall be mailed, delivered or
telegraphed and confirmed to it at Princeton Corporate Campus, 800 Scudders
Mill Road, Section 2G, ▇▇▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇, Attention: ▇▇. ▇▇▇▇▇▇ ▇.
▇▇▇▇▇.
Section 11. Parties. This Agreement shall inure to the benefit of
and be binding upon the Selling Agent, the Companies, the Manager and such
parties' respective successors to the extent provided herein. This Agreement
and the conditions and provisions hereof are intended to be and are for the
sole and exclusive benefit of the parties hereto and their respective
successors, assigns and controlling persons and parties indemnified hereunder,
and for the benefit of no other person, firm or corporation. No purchaser of a
Unit shall be considered to be a successor or assign solely on the basis of
such purchase.
SECTION 12. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES CREATED HEREBY SHALL BE GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.
Section 13. Requirements of Law. Whenever in this Agreement it is
stated that a party will take or refrain from taking a particular action, such
party may nevertheless refrain from taking or take such action if advised by
counsel that doing so is required by law or advisable to ensure compliance
with law, and shall not be subject to any liability hereunder for doing so,
although such action shall permit termination of this Agreement by the other
parties hereto.
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If the foregoing is in accordance with each party's understanding
of its agreement, each party is requested to sign and return to the Manager a
counterpart hereof, whereupon this instrument along with all counterparts will
become a binding agreement among them in accordance with its terms effective
as of the date first above written.
Very truly yours,
Signed for and on behalf of:
▇▇ ▇▇▇▇▇▇▇▇ FuturesAccess LLC ML Aspect
FuturesAccess LLC ML Cornerstone FuturesAccess
LLC ▇▇ ▇▇▇▇▇▇ FuturesAccess LLC
By: ▇▇▇▇▇▇▇ ▇▇▇▇▇ Alternative
Investments LLC
Manager
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
--------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Vice President,
Chief Operating Officer and Manager
▇▇▇▇▇▇▇ ▇▇▇▇▇ ALTERNATIVE
INVESTMENTS LLC
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
--------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Vice President,
Chief Operating Officer and Manager
Confirmed and accepted as of the date first above written:
▇▇▇▇▇▇▇ LYNCH, PIERCE, ▇▇▇▇▇▇ &
▇▇▇▇▇ INCORPORATED
Selling Agent
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
-------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Authorized Signatory
11
APPENDIX
SCHEDULE OF COMPANIES
---------------------
(Dated as of October 31, 2004)
▇▇ ▇▇▇▇▇▇▇▇ FUTURESACCESS LLC
ML ASPECT FUTURESACCESS LLC
ML CORNERSTONE FUTURESACCESS LLC
▇▇ ▇▇▇▇▇▇ FUTURESACCESS LLC