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

Redemptions through the Clearing Process: Delivery Fails; Posting of Cash. 1. The Trust recognizes that on the redemption of Creation Units of an ETF Series through the Clearing Process X.X. Xxxxxx, on behalf of the applicable ETF Series, is obligated to deliver to NSCC on the settlement date the required type and amount of Redemption Securities to redeem the Creation Units of the applicable ETF Series. It shall be the responsibility of the Trust and each ETF Series to maintain in the custody account the required type and amount of Redemption Securities for the redemption of Creation Units of each ETF Series. Should the custody account of an ETF Series for any reason (for example, through the Trust’s participation in a securities lending program on behalf of the ETF Series) have a short position in respect of any of the securities creates comprising the basket of Redemption Securities (a “short delivery position”) with the result that, on settlement date, X.X. Xxxxxx is unable to deliver a sufficient quantity of the Redemption Securities to NSCC, the Trust acknowledges that X.X. Xxxxxx shall be obligated under NSCC’s rules to fund the short delivery position with cash pending delivery of the quantity of securities needed to cover the short delivery position. X.X. Xxxxxx shall be entitled to charge to the account of the applicable ETF Series the amount of cash needed to cover the short delivery position. In the event that X.X. Xxxxxx advances its own funds to cover an ETF Series short delivery position, X.X. Xxxxxx, in its discretion, may charge the applicable EFT Series interest on the amount of the advance at the rate that X.X. Xxxxxx charges for advances of a similar nature to similar customers of X.X. Xxxxxx, unless X.X. Xxxxxx and the Trust have mutually agreed in writing upon another rate.

Redemptions through the Clearing Process: Delivery Fails; Posting of Cash. 1. The Trust recognizes that on the redemption of Creation Units of an ETF Series through the Clearing Process X.X. J.X. Xxxxxx, on behalf of the applicable ETF Series, is obligated to deliver to NSCC on the settlement date the required type and amount of Redemption Securities to redeem the Creation Units of the applicable ETF Series. It shall be the responsibility of the Trust and each ETF Series to maintain in the custody account the required type and amount of Redemption Securities for the redemption of Creation Units of each ETF Series. Should the custody account of an ETF Series for any reason (for example, through the Trust’s participation in a securities lending program on behalf of the ETF Series) have a short position in respect of any of the securities creates comprising the basket of Redemption Securities (a “short delivery position”) with the result that, on settlement date, X.X. J.X. Xxxxxx is unable to deliver a sufficient quantity of the Redemption Securities to NSCC, the Trust acknowledges that X.X. J.X. Xxxxxx shall be obligated under NSCC’s rules to fund the short delivery position with cash pending delivery of the quantity of securities needed to cover the short delivery position. X.X. J.X. Xxxxxx shall be entitled to charge to the account of the applicable ETF Series the amount of cash needed to cover the short delivery position. In the event that X.X. J.X. Xxxxxx advances its own funds to cover an ETF Series short delivery position, X.X. J.X. Xxxxxx, in its discretion, may charge the applicable EFT ETF Series interest on the amount of the advance at the rate that X.X. J.X. Xxxxxx charges for advances of a similar nature to similar customers of X.X. J.X. Xxxxxx, unless X.X. J.X. Xxxxxx and the Trust have mutually agreed in writing upon another rate.

Redemptions through the Clearing Process: Delivery Fails; Posting of Cash. 1. The Trust recognizes that on the redemption of Creation Units of an ETF Series a Fund through the Clearing Process X.X. Xxxxxx, on behalf of the applicable ETF SeriesFund, is obligated to deliver to NSCC on the settlement date the required type and amount of Redemption Securities to redeem the Creation Units of the applicable ETF SeriesFund. It shall be the responsibility of the Trust and each ETF Series Fund to maintain in the custody account the required type and amount of Redemption Securities for the redemption of Creation Units of each ETF SeriesFund. Should the custody account of an ETF Series a Fund for any reason (for example, through the Trust’s participation in a securities lending program on behalf of the ETF SeriesFund) have a short position in respect of any of the securities creates issues comprising the basket of Redemption Securities (a “short delivery position”) with the result that, on settlement date, X.X. Xxxxxx is unable to deliver a sufficient quantity of the Redemption Securities to NSCC, the Trust acknowledges that X.X. Xxxxxx shall be obligated under NSCC’s rules to fund the short delivery position with cash pending delivery of the quantity of securities needed to cover the short delivery position. X.X. Xxxxxx shall be entitled to charge to the account of the applicable ETF Series Fund the amount of cash needed to cover the short delivery position. In the event that X.X. Xxxxxx advances its own funds to cover an ETF Series a Fund short delivery position, X.X. Xxxxxx, in its discretion, may charge the applicable EFT Series Fund interest on the amount of the advance at the rate that X.X. Xxxxxx charges for advances of a similar nature to similar customers of X.X. Xxxxxx, unless X.X. Xxxxxx and the Trust have mutually agreed in writing upon another rate.. ETF Agency Services Agreement – March 2010 version

Redemptions through the Clearing Process: Delivery Fails; Posting of Cash. 1. The Trust recognizes that on the redemption of Creation Units of an ETF Series through the Clearing Process X.X. Xxxxxx, on behalf of the applicable ETF Series, is obligated to deliver to NSCC on the settlement date the required type and amount of Redemption Securities to redeem the Creation Units of the applicable ETF Series. It shall be the responsibility of the Trust and each ETF Series to maintain in the custody account the required type and amount of Redemption Securities for the redemption of Creation Units of each ETF Series. Should the custody account of an ETF Series for any reason (for example, through the Trust’s 's participation in a securities lending program on behalf of the ETF Series) have a short position in respect of any of the securities creates comprising the basket of Redemption Securities (a “"short delivery position”") with the result that, on settlement date, X.X. Xxxxxx is unable to deliver a sufficient quantity of the Redemption Securities to NSCC, the Trust acknowledges that X.X. Xxxxxx shall be obligated under NSCC’s 's rules to fund the short delivery position with cash pending delivery of the quantity of securities needed to cover the short delivery position. X.X. Xxxxxx shall be entitled to charge to the account of the applicable ETF Series the amount of cash needed to cover the short delivery position. In the event that X.X. Xxxxxx advances its own funds to cover an ETF Series short delivery position, X.X. Xxxxxx, in its discretion, may charge the applicable EFT ETF Series interest on the amount of the advance at the rate that X.X. Xxxxxx charges for advances of a similar nature to similar customers of X.X. Xxxxxx, unless X.X. Xxxxxx and the Trust have mutually agreed in writing upon another rate.

Redemptions through the Clearing Process: Delivery Fails; Posting of Cash. 1. The Trust recognizes that on the redemption of Creation Units of an ETF Series through the Clearing Process X.X. Xxxxxx, on behalf of the applicable ETF Series, is obligated to deliver to NSCC on the settlement date the required type and amount of Redemption Securities to redeem the Creation Units of the applicable ETF Series. It shall be the responsibility of the Trust and each ETF Series to maintain in the custody account the required type and amount of Redemption Securities for the redemption of Creation Units of each ETF Series. Should the custody account of an ETF Series for any reason (for example, through the Trust’s participation in a securities lending program on behalf of the ETF Series) have a short position in respect of any of the securities creates comprising the basket of Redemption Securities (a “short delivery position”) with the result that, on settlement date, X.X. Xxxxxx is unable to deliver a sufficient quantity of the Redemption Securities to NSCC, the Trust acknowledges that X.X. Xxxxxx shall be obligated under NSCC’s rules to fund the short delivery position with cash pending delivery of the quantity of securities needed to cover the short delivery position. X.X. Xxxxxx shall be entitled to charge to the account of the applicable ETF Series the amount of cash needed to cover the short delivery position. In the event that X.X. Xxxxxx advances its own funds to cover an ETF Series short delivery position, X.X. Xxxxxx, in its discretion, may charge the applicable EFT ETF Series interest on the amount of the advance at the rate that X.X. Xxxxxx charges for advances of a similar nature to similar customers of X.X. Xxxxxx, unless X.X. Xxxxxx and the Trust have mutually agreed in writing upon another rate.

Redemptions through the Clearing Process: Delivery Fails; Posting of Cash. 1. The Trust recognizes that on the redemption of Creation Units of an ETF Series through the Clearing Process X.X. Xxxxxx, on behalf of the applicable ETF Series, is obligated to deliver to NSCC on the settlement date the required type and amount of Redemption Securities to redeem the Creation Units of the applicable ETF Series. It shall be the responsibility of the Trust and each ETF Series to maintain in the custody account the required type and amount of Redemption Securities for the redemption of Creation Units of each ETF Series. Should the custody account of an ETF Series for any reason (for example, through the Trust’s participation in a securities lending program on behalf of the ETF Series) have a short position in respect of any of the securities creates comprising the basket of Redemption Securities (a “short delivery position”) with the result that, on settlement date, X.X. Xxxxxx is unable to deliver a sufficient quantity of the Redemption Securities to NSCC, the Trust acknowledges that X.X. Xxxxxx shall be obligated under NSCC’s rules to fund the short delivery position with cash pending delivery of the quantity of securities needed to cover the short delivery position. X.X. Xxxxxx shall be entitled to charge to the account of the applicable ETF Series the amount of cash needed to cover the short delivery position. In the event that X.X. Xxxxxx advances its own funds to cover an ETF Series short delivery position, X.X. Xxxxxx, in its discretion, may charge the applicable EFT Series interest on the amount of the advance at the rate that X.X. Xxxxxx charges for advances of a similar nature to similar customers of X.X. Xxxxxx, unless X.X. Xxxxxx and the Trust have mutually agreed in writing upon another rate.

Redemptions through the Clearing Process: Delivery Fails; Posting of Cash. 1. The Trust recognizes that on the redemption of Creation Units of an ETF Series through the Clearing Process X.X. J.X. Xxxxxx, on behalf of the applicable ETF Series, is obligated to deliver to NSCC on the settlement date the required type and amount of Redemption Securities to redeem the Creation Units of the applicable ETF Series. It shall be the responsibility of the Trust and each ETF Series to maintain in the custody account the required type and amount of Redemption Securities for the redemption of Creation Units of each ETF Series. Should the custody account of an ETF Series for any reason (for example, through the Trust’s participation in a securities lending program on behalf of the ETF Series) have a short position in respect of any of the securities creates comprising the basket of Redemption Securities (a “short delivery position”) with the result that, on settlement date, X.X. J.X. Xxxxxx is unable to deliver a sufficient quantity of the Redemption Securities to NSCC, the Trust acknowledges that X.X. J.X. Xxxxxx shall be obligated under NSCC’s rules to fund the short delivery position with cash pending delivery of the quantity of securities needed to cover the short delivery position. X.X. J.X. Xxxxxx shall be entitled to charge to the account of the applicable ETF Series the amount of cash needed to cover the short delivery position. In the event that X.X. J.X. Xxxxxx advances its own funds to cover an ETF Series short delivery position, X.X. J.X. Xxxxxx, in its discretion, may charge the applicable EFT Series interest on the amount of the advance at the rate that X.X. J.X. Xxxxxx charges for advances of a similar nature to similar customers of X.X. J.X. Xxxxxx, unless X.X. J.X. Xxxxxx and the Trust have mutually agreed in writing upon another rate.. ETF Agency Services Agreement – December 2010 version