Common use of General Prohibitions Clause in Contracts

General Prohibitions. The Trust shall not: (a) Receive any property other than ether upon the issuance of Shares; (b) Hold any property other than ether, or cash from the sale of ether or interests in any liquidating trust or other vehicle formed to hold pending distribution of such interests to the Shareholders; (c) Hold any cash from the sale of ether for more than thirty (30) Business Days prior to using such cash to pay Additional Trust Expenses and distributing any remaining cash to the Shareholders; (d) Redeem the Shares other than (i) to satisfy a Redemption Order from an Authorized Participant, (ii) as provided in Section 6.8 or (iii) upon the dissolution of the Trust; (e) Borrow money from or loan money to any Shareholder or any other Person; (f) Create, incur, assume or suffer to exist any lien, mortgage, pledge conditional sales or other title retention agreement, charge, security interest or encumbrance on or with respect to the Trust Estate, except liens for taxes not delinquent or being contested in good faith and by appropriate proceedings and for which appropriate reserves have been established; (g) Commingle the Trust Estate with the assets of any other Person; (h) Permit rebates to be received by the Delegated Sponsor or any Affiliate of the Delegated Sponsor, or permit the Delegated Sponsor or any Affiliate of the Delegated Sponsor to engage in any reciprocal business arrangements which would circumvent the foregoing prohibition; (i) Enter into any contract with the Delegated Sponsor or an Affiliate of the Delegated Sponsor (A) that, except for selling agreements for the sale of Shares, has a term of more than one year and that does not provide that it may be canceled by the Trust without penalty on sixty (60) days prior written notice or (B) for the provision of services, except at rates and terms at least as favorable as those that may be obtained from third parties in arm’s length negotiations; (j) Cause the Trust to elect to be treated as an association taxable as a corporation for U.S. federal income tax purposes; or (k) Take any action that would result in the Trust being treated other than a grantor trust for U.S. federal tax purposes.

General Prohibitions. The Trust shall not, and the Sponsor shall not have the power to cause the Trust to: (a) Receive any property other than ether Ether upon the issuance of Shares; (b) Hold any property other than ether(i) Ether, or Incidental Rights and IR Virtual Currency, (ii) cash from the sale of ether Ether, Incidental Rights or IR Virtual Currency and (iii) interests in any liquidating trust or other vehicle formed to hold Ether, Incidental Rights or IR Virtual Currency pending distribution of such interests to the Shareholders; (c) Hold any cash from the sale of ether Ether, Incidental Rights or IR Virtual Currency for more than thirty (30) Business Days prior to using such cash to pay Additional Trust Expenses Expenses, or to fund the redemption of Redemption Baskets, and distributing any remaining cash to the Shareholders; (d) Redeem If the redemption of Shares is not authorized pursuant to ‎Section 5.1, redeem any Shares other than upon the dissolution of the Trust; (e) If the redemption of Shares is authorized pursuant to ‎Section 5.1, redeem the Shares other than (i) to satisfy a Redemption Order from an Authorized Participant, (ii) as provided in Section 6.8 ‎Section 5.2 or ‎Section 5.3 or (iii) upon the dissolution of the Trust; (ef) Borrow money from from, or loan money to to, any Shareholder Shareholder, the Sponsor or any other Person; (fg) Create, incur, assume or suffer to exist any lien, mortgage, pledge conditional sales or other title retention agreement, charge, security interest or encumbrance on or with respect to the Trust Estate, except for (i) liens for taxes not delinquent or being contested in good faith and by appropriate proceedings and for which appropriate reserves have been establishedestablished and (ii) liens by the Trustee against the Trust property as security for any amounts owing to the Trustee hereunder; (gh) Commingle the Trust Estate with the assets of any other Person; provided that, for the avoidance of doubt, a portion of the Trust Estate may be held in the Settlement Balance from time to time in order to facilitate the creation and redemption of Shares; (hi) Permit rebates to be received by the Delegated Sponsor or any Affiliate of the Delegated Sponsor, or permit the Delegated Sponsor or any Affiliate of the Delegated Sponsor to engage in any reciprocal business arrangements which would circumvent the foregoing prohibition; (ij) Enter into any contract with the Delegated Sponsor or an Affiliate of the Delegated Sponsor (A) that, except for selling agreements for the sale of Shares, has a term of more than one year and that does not provide that it may be canceled by the Trust without penalty on sixty one hundred twenty (60120) days prior written notice or (B) for the provision of services, except at rates and terms at least as favorable as those that may be obtained from third parties in arm’s length negotiations; (jk) Cause the Trust to elect Enter into any exclusive brokerage contract; (l) Elect to be treated as an association taxable as a corporation for U.S. federal income tax purposes; or (km) Take Notwithstanding any other provision of this Trust Agreement, including ‎Section 6.4(b), take any action that would result in could cause the Trust being to be treated other than as a grantor trust for U.S. federal income tax purposes.

General Prohibitions. The Trust shall not: (a) Receive any property other than ether XRP upon the issuance of Shares; (b) Hold any property other than etherXRP, Incidental Rights, IR Virtual Currency, or cash from the sale of ether XRP or interests in any liquidating trust or other vehicle formed to hold pending distribution of such interests to the Shareholders; (c) Hold any cash from the sale of ether XRP, Incidental Rights or IR Virtual Currency for more than thirty (30) Business Days prior to using such cash to pay Additional Trust Expenses and distributing any remaining cash to the Shareholders; (d) Redeem the Shares other than (i) to satisfy a Redemption Order from an Authorized Participant, (ii) as provided in Section 6.8 or (iii) upon the dissolution of the Trust; (e) Borrow money from or loan money to any Shareholder (including the Sponsor) or any other Person; (f) Create, incur, assume or suffer to exist any lien, mortgage, pledge conditional sales or other title retention agreement, charge, security interest or encumbrance on or with respect to the Trust Estate, except liens for taxes not delinquent or being contested in good faith and by appropriate proceedings and for which appropriate reserves have been established; (g) Commingle the Trust Estate with the assets of any other Person; (h) Permit rebates to be received by the Delegated Sponsor or any Affiliate of the Delegated Sponsor, or permit the Delegated Sponsor or any Affiliate of the Delegated Sponsor to engage in any reciprocal business arrangements which would circumvent the foregoing prohibition; (i) Enter into any contract with the Delegated Sponsor or an Affiliate of the Delegated Sponsor (A) that, except for selling agreements for the sale of Shares, has a term of more than one year and that does not provide that it may be canceled cancelled by the Trust without penalty on sixty (60) days prior written notice or (B) for the provision of services, except at rates and terms at least as favorable as those that may be obtained from third parties in arm’s length negotiations; (j) Cause the Trust to elect to be treated as an association taxable as a corporation for U.S. federal income tax purposes; or (k) Take any action that would result in the Trust being treated other than a grantor trust for U.S. federal tax purposes.

General Prohibitions. The Trust shall not: (a) Receive any property other than ether bitcoin upon the issuance of Shares; (b) Hold any property other than etherbitcoin, or cash from the sale of ether bitcoin [or interests in any liquidating trust or other vehicle formed to hold pending distribution of such interests to the Shareholders]; (c) Hold any cash from the sale of ether bitcoin for more than thirty (30) Business Days prior to using such cash to pay Additional Trust Expenses and distributing any remaining cash to the Shareholders; (d) Redeem the Shares other than (i) to satisfy a Redemption Order from an Authorized Participant, (ii) as provided in Section 6.8 or (iii) upon the dissolution of the Trust; (e) Borrow money from or loan money to any Shareholder (including the Sponsor) or any other Person; (f) Create, incur, assume or suffer to exist any lien, mortgage, pledge conditional sales or other title retention agreement, charge, security interest or encumbrance on or with respect to the Trust Estate, except liens for taxes not delinquent or being contested in good faith and by appropriate proceedings and for which appropriate reserves have been established; (g) Commingle the Trust Estate with the assets of any other Person; (h) Permit rebates to be received by the Delegated Sponsor or any Affiliate of the Delegated Sponsor, or permit the Delegated Sponsor or any Affiliate of the Delegated Sponsor to engage in any reciprocal business arrangements which would circumvent the foregoing prohibition; (i) Enter into any contract with the Delegated Sponsor or an Affiliate of the Delegated Sponsor (A) that, except for selling agreements for the sale of Shares, has a term of more than one year and that does not provide that it may be canceled by the Trust without penalty on sixty (60) days prior written notice or (B) for the provision of services, except at rates and terms at least as favorable as those that may be obtained from third parties in arm’s length negotiations; (j) Cause the Trust to elect to be treated as an association taxable as a corporation for U.S. federal income tax purposes; or (k) Take any action that would result in the Trust being treated other than a grantor trust for U.S. federal tax purposes.

General Prohibitions. The Trust shall not, and the Sponsor shall not have the power to cause the Trust to: (a) Receive any property other than ether Ether upon the issuance of Shares; (b) Hold any property other than ether(i) Ether, Incidental Rights and IR Virtual Currency, or (ii) cash from the sale of ether Ether, Incidental Rights or IR Virtual Currency and (iii) interests in any liquidating trust or other vehicle formed to hold Ether, Incidental Rights or IR Virtual Currency pending distribution of such interests to the Shareholders; (c) Hold any cash from the sale of ether Ether, Incidental Rights or IR Virtual Currency for more than thirty (30) Business Days prior to using such cash to pay Additional Trust Expenses Expenses, or to fund the redemption of Redemption Baskets, and distributing any remaining cash to the Shareholders; (d) Redeem If the redemption of Shares is not authorized pursuant to SECTION 5.1, redeem any Shares other than upon the dissolution of the Trust; (e) If the redemption of Shares is authorized pursuant to SECTION 5.1, redeem the Shares other than (i) to satisfy a Redemption Order from an Authorized Participant, (ii) as provided in Section 6.8 SECTION 5.2 or SECTION 5.3 or (iii) upon the dissolution of the Trust;; 3 (ef) Borrow money from from, or loan money to to, any Shareholder Shareholder, the Sponsor or any other Person; (fg) Create, incur, assume or suffer to exist any lien, mortgage, pledge conditional sales or other title retention agreement, charge, security interest or encumbrance on or with respect to the Trust Estate, except for (i) liens for taxes not delinquent or being contested in good faith and by appropriate proceedings and for which appropriate reserves have been establishedestablished and (ii) liens by the Trustee against the Trust property as security for any amounts owing to the Trustee hereunder; (gh) Commingle the Trust Estate with the assets of any other Person; provided that, for the avoidance of doubt, a portion of the Trust Estate may be held in the Settlement Balance from time to time in order to facilitate the creation and redemption of Shares; (hi) Permit rebates to be received by the Delegated Sponsor or any Affiliate of the Delegated Sponsor, or permit the Delegated Sponsor or any Affiliate of the Delegated Sponsor to engage in any reciprocal business arrangements which would circumvent the foregoing prohibition; (ij) Enter into any contract with the Delegated Sponsor or an Affiliate of the Delegated Sponsor (A) that, except for selling agreements for the sale of Shares, has a term of more than one year and that does not provide that it may be canceled by the Trust without penalty on sixty one hundred twenty (60120) days prior written notice or (B) for the provision of services, except at rates and terms at least as favorable as those that may be obtained from third parties in arm’s length negotiations; (jk) Cause the Trust to elect Enter into any exclusive brokerage contract; (l) Elect to be treated as an association taxable as a corporation for U.S. federal income tax purposes; or (km) Take Notwithstanding any other provision of this Trust Agreement, including SECTION 6.4(b), take any action that would result in could cause the Trust being to be treated other than as a grantor trust for U.S. federal income tax purposes. (f) Section 12.2 of the Trust Agreement is amended as follows (with strike through representing deletions and underlining and bold representing additions):

General Prohibitions. The Trust shall not: (a) Receive any property other than ether SOL upon the issuance of Shares; (b) Hold any property other than etherSOL, or cash from the sale of ether SOL or interests in any liquidating trust or other vehicle formed to hold pending distribution of such interests to the Shareholders; (c) Hold any cash from the sale of ether SOL for more than thirty (30) Business Days prior to using such cash to pay Additional Trust Expenses and distributing any remaining cash to the Shareholders; (d) Redeem the Shares other than (i) to satisfy a Redemption Order from an Authorized Participant, (ii) as provided in Section 6.8 or (iii) upon the dissolution of the Trust; (e) Borrow money from or loan money to any Shareholder or any other Person; (f) Create, incur, assume or suffer to exist any lien, mortgage, pledge conditional sales or other title retention agreement, charge, security interest or encumbrance on or with respect to the Trust Estate, except liens for taxes not delinquent or being contested in good faith and by appropriate proceedings and for which appropriate reserves have been established; (g) Commingle the Trust Estate with the assets of any other Person; (h) Permit rebates to be received by the Delegated Sponsor or any Affiliate of the Delegated Sponsor, or permit the Delegated Sponsor or any Affiliate of the Delegated Sponsor to engage in any reciprocal business arrangements which would circumvent the foregoing prohibition; (i) Enter into any contract with the Delegated Sponsor or an Affiliate of the Delegated Sponsor (A) that, except for selling agreements for the sale of Shares, has a term of more than one year and that does not provide that it may be canceled by the Trust without penalty on sixty (60) days prior written notice or (B) for the provision of services, except at rates and terms at least as favorable as those that may be obtained from third parties in arm’s length negotiations; (j) Cause the Trust to elect to be treated as an association taxable as a corporation for U.S. federal income tax purposes; or (k) Take any action that would result in the Trust being treated other than a grantor trust for U.S. federal tax purposes.

General Prohibitions. The Trust shall not: (a) Receive any property other than ether upon the issuance of Shares; (b) Hold any property other than ether, Incidental Rights, IR Virtual Currency, or cash from the sale of ether or interests in any liquidating trust or other vehicle formed to hold pending distribution of such interests to the Shareholders; (c) Hold any cash from the sale of ether ether, Incidental Rights or IR Virtual Currency for more than thirty (30) Business Days prior to using such cash to pay Additional Trust Expenses and distributing any remaining cash to the Shareholders; (d) Redeem the Shares other than (i) to satisfy a Redemption Order from an Authorized Participant, (ii) as provided in Section 6.8 or (iii) upon the dissolution of the Trust; (e) Borrow money from or loan money to any Shareholder (including the Sponsor) or any other Person; (f) Create, incur, assume or suffer to exist any lien, mortgage, pledge conditional sales or other title retention agreement, charge, security interest or encumbrance on or with respect to the Trust Estate, except liens for taxes not delinquent or being contested in good faith and by appropriate proceedings and for which appropriate reserves have been established; (g) Commingle the Trust Estate with the assets of any other Person; (h) Permit rebates to be received by the Delegated Sponsor or any Affiliate of the Delegated Sponsor, or permit the Delegated Sponsor or any Affiliate of the Delegated Sponsor to engage in any reciprocal business arrangements which would circumvent the foregoing prohibition; (i) Enter into any contract with the Delegated Sponsor or an Affiliate of the Delegated Sponsor (A) that, except for selling agreements for the sale of Shares, has a term of more than one year and that does not provide that it may be canceled by the Trust without penalty on sixty (60) days prior written notice or (B) for the provision of services, except at rates and terms at least as favorable as those that may be obtained from third parties in arm’s length negotiations; (j) Cause the Trust to elect to be treated as an association taxable as a corporation for U.S. federal income tax purposes; or (k) Take any action that would result in the Trust being treated other than a grantor trust for U.S. federal tax purposes.

General Prohibitions. The Trust shall not, and the Sponsor shall not have the power to cause the Trust to: (a) Receive any property other than ether Bitcoin upon the issuance of Shares; (b) Hold any property other than ether(i) Bitcoin, Incidental Rights and IR Virtual Currency, or (ii) cash from the sale of ether Bitcoin, Incidental Rights or IR Virtual Currency and (iii) interests in any liquidating trust or other vehicle formed to hold Bitcoin, Incidental Rights or IR Virtual Currency pending distribution of such interests to the Shareholders; (c) Hold any cash from the sale of ether Bitcoin, Incidental Rights or IR Virtual Currency for more than thirty (30) Business Days prior to using such cash to pay Additional Trust Expenses Expenses, or to fund the redemption of Redemption Baskets, and distributing any remaining cash to the Shareholders; (d) Redeem If the redemption of Shares is not authorized pursuant to SECTION 5.1, redeem any Shares other than upon the dissolution of the Trust; (e) If the redemption of Shares is authorized pursuant to SECTION 5.1, redeem the Shares other than (i) to satisfy a Redemption Order from an Authorized Participant, (ii) as provided in Section 6.8 SECTION 5.2 or SECTION 5.3 or (iii) upon the dissolution of the Trust;; 3 (ef) Borrow money from from, or loan money to to, any Shareholder Shareholder, the Sponsor or any other Person; (fg) Create, incur, assume or suffer to exist any lien, mortgage, pledge conditional sales or other title retention agreement, charge, security interest or encumbrance on or with respect to the Trust Estate, except for (i) liens for taxes not delinquent or being contested in good faith and by appropriate proceedings and for which appropriate reserves have been establishedestablished and (ii) liens by the Trustee against the Trust property as security for any amounts owing to the Trustee hereunder; (gh) Commingle the Trust Estate with the assets of any other Person; provided that, for the avoidance of doubt, a portion of the Trust Estate may be held in the Settlement Balance from time to time in order to facilitate the creation and redemption of Shares; (hi) Permit rebates to be received by the Delegated Sponsor or any Affiliate of the Delegated Sponsor, or permit the Delegated Sponsor or any Affiliate of the Delegated Sponsor to engage in any reciprocal business arrangements which would circumvent the foregoing prohibition; (ij) Enter into any contract with the Delegated Sponsor or an Affiliate of the Delegated Sponsor (A) that, except for selling agreements for the sale of Shares, has a term of more than one year and that does not provide that it may be canceled by the Trust without penalty on sixty one hundred twenty (60120) days prior written notice or (B) for the provision of services, except at rates and terms at least as favorable as those that may be obtained from third parties in arm’s length negotiations; (jk) Cause the Trust to elect Enter into any exclusive brokerage contract; (l) Elect to be treated as an association taxable as a corporation for U.S. federal income tax purposes; or (km) Take Notwithstanding any other provision of this Trust Agreement, including SECTION 6.4(b), take any action that would result in could cause the Trust being to be treated other than as a grantor trust for U.S. federal income tax purposes. (f) Section 12.2 of the Trust Agreement is amended as follows (with strike through representing deletions and underlining and bold representing additions):

General Prohibitions. The Trust shall not: (a) Receive any property other than ether Index Constituents upon the issuance of Common Shares, or such consideration that the Sponsor, in its discretion, determines is appropriate in connection with the issuance of the Sponsor Share; (b) Hold any property other than etherIndex Constituents, including staked Index Constituents, Net Staking Income or cash from the sale of ether Index Constituents or interests in any liquidating trust or other vehicle formed to hold pending distribution of such interests to the Shareholders; (c) Hold any cash from the sale of ether for more than thirty (30) Business Days prior to using such cash to pay Additional Trust Expenses and distributing any remaining cash to the Shareholders; (d) Redeem the Common Shares other than (i) to satisfy a Redemption Order from an Authorized Participant, (ii) as provided in Section 6.8 or (iii) upon the dissolution of the Trust; provided that the Sponsor Share shall not be redeemable; (ed) Borrow money from or loan money to any Shareholder (including the Sponsor) or any other Person; (fe) Create, incur, assume or suffer to exist any lien, mortgage, pledge conditional sales or other title retention agreement, charge, security interest or encumbrance on or with respect to the Trust Estate, except liens for taxes not delinquent or being contested in good faith and by appropriate proceedings and for which appropriate reserves have been established; (gf) Commingle the Trust Estate with the assets of any other Person; (hg) Permit rebates to be received by the Delegated Sponsor or any Affiliate of the Delegated Sponsor, or permit the Delegated Sponsor or any Affiliate of the Delegated Sponsor to engage in any reciprocal business arrangements which would circumvent the foregoing prohibition; (ih) Enter into any contract with the Delegated Sponsor or an Affiliate of the Delegated Sponsor (A) that, except for selling agreements for the sale of Shares, has a term of more than one year and that does not provide that it may be canceled by the Trust without penalty on sixty (60) days prior written notice or (B) for the provision of services, except at rates and terms at least as favorable as those that may be obtained from third parties in arm’s length negotiations; (ji) Cause the Trust to elect to be treated as an association taxable as a corporation for U.S. federal income tax purposes; or (kj) Take any action that would result in the Trust being treated other than a grantor trust partnership for U.S. federal tax purposes.

General Prohibitions. The Trust shall not, and the Sponsor shall not have the power to cause the Trust to: (a) Receive any property other than ether ZEC upon the issuance of Shares; (b) Hold any property other than ether(i) ZEC, Incidental Rights and IR Virtual Currency or (ii) cash from the sale of ether ZEC, Incidental Rights or interests in any liquidating trust or other vehicle formed to hold pending distribution of such interests to the ShareholdersIR Virtual Currency; (c) Hold any cash from the sale of ether ZEC, Incidental Rights or IR Virtual Currency for more than thirty (30) Business Days prior to using such cash to pay Additional Trust Expenses Expenses, or to fund the redemption of Redemption Baskets, and distributing any remaining cash to the Shareholders; (d) Redeem If the redemption of Shares is not authorized pursuant to Section 5.1, redeem any Shares other than upon the dissolution of the Trust; (e) If the redemption of Shares is authorized pursuant to Section 5.1, redeem the Shares other than (i) to satisfy a Redemption Order from an Authorized 27 Participant, (ii) as provided in Section 6.8 5.2 or Section 5.3 or (iii) upon the dissolution of the Trust; (ef) Borrow money from from, or loan money to to, any Shareholder Shareholder, the Sponsor or any other Person; (fg) Create, incur, assume or suffer to exist any lien, mortgage, pledge conditional sales or other title retention agreement, charge, security interest or encumbrance on or with respect to the Trust Estate, except for (i) liens for taxes not delinquent or being contested in good faith and by appropriate proceedings and for which appropriate reserves have been establishedestablished and (ii) liens by the Trustee against the Trust property as security for any amounts owing to the Trustee hereunder; (gh) Commingle the Trust Estate with the assets of any other Person; provided that, for the avoidance of doubt, a portion of the Trust Estate may be held in the Settlement Balance from time to time in order to facilitate the creation and redemption of Shares; (hi) Permit rebates to be received by the Delegated Sponsor or any Affiliate of the Delegated Sponsor, or permit the Delegated Sponsor or any Affiliate of the Delegated Sponsor to engage in any reciprocal business arrangements which would circumvent the foregoing prohibition; (ij) Enter into any contract with the Delegated Sponsor or an Affiliate of the Delegated Sponsor (A) that, except for selling agreements for the sale of Shares, has a term of more than one year and that does not provide that it may be canceled by the Trust without penalty on sixty one hundred twenty (60120) days prior written notice or (B) for the provision of services, except at rates and terms at least as favorable as those that may be obtained from third parties in arm’s length negotiations; (jk) Cause the Trust to elect Enter into any exclusive brokerage contract; (l) Elect to be treated as an association taxable as a corporation for U.S. federal income tax purposes; or (km) Take Notwithstanding any other provision of this Trust Agreement, including Section 6.4(b), take any action that would result in could cause the Trust being to be treated other than as a grantor trust for U.S. federal income tax purposes.; or