EX-10.8
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g11343exv10w8.htm
EX-10.8 MARKETING SERVICES AGREEMENT
Exhibit 10.8
AGREEMENT FOR MARKETING SERVICES
THIS
AGREEMENT FOR MARKETING SERVICES (the “Agreement”) is made and entered into this
14th day of January, 2008 (the “Effective Date”), by and between ALPS Fund
Services, Inc. a
Colorado corporation located at 0000 Xxxxxxxx, Xxxxx 0000, Xxxxxx, Xxxxxxxx 00000
(“ALPS”) and GreenHaven Commodity Services, LLC, a Delaware limited liability company
located at 0000 Xxxxxxxxx Xxxx, Xxxxx 0000, Xxxxxxx, Xxxxxxx 00000 (the “Client”). ALPS
and the Client are sometimes hereinafter individually collectively referred to as a “Party”
and collectively as the “Parties”.
WHEREAS, the Client is the managing owner of GreenHaven Continuous Commodity Index Tracking
Fund, a Delaware statutory trust that is listed on the American Stock Exchange (the “Feeder
Fund”), and of GreenHaven Continuous Commodity Index Master Fund, a Delaware statutory trust
and a commodity index-linked fund in which the Feeder Fund has invested all of its assets (the
“Master Fund”; collectively with the Feeder Fund, the “Funds”); and
WHEREAS, ALPS provides certain professional services to entities such as the Funds and
WHEREAS, the Client desires to engage ALPS to perform the services described below for the
Funds and ALPS desires to accept such appointment.
NOW, THEREFORE, in consideration of the mutual covenants herein contained, the Parties hereto
agree as follows:
1. Scope of Services. ALPS agrees to perform for the Funds the services listed on
Exhibit “A” hereto (collectively, the “Services”).
2. Fees. For the performance by ALPS of the Services pursuant to this Agreement,
Client agrees to pay ALPS an annual fee, amortized monthly and payable quarterly, based upon the
gross management fees paid by the Master Fund to the Client, in accordance with the fee schedule
set forth on Exhibit “B” hereto. Such fees, as well as ALPS’ out-of-pocket expenses and
advances identified in Section 3 below, may be changed from time to time by mutual written
agreement of the Parties.
3. Out of Pocket Expenses. In addition to the fees that the Client shall pay to ALPS
pursuant to Section 2 above, the Client agrees to reimburse ALPS for its reasonable out-of-pocket
expenses incurred and advances made by ALPS in performing the Services, including, but specifically
not limited to, regulatory filing fees. In addition, any other expense incurred by ALPS at the
specific written request or consent of the Client will be reimbursed by the Client.
4. Invoicing. The Client agrees to pay ALPS’ invoices for fees and expenses within
thirty (30) days following the Client’s receipt of ALPS’ respective billing invoice, other than any
fees or expenses that are subject to a good faith dispute between the Parties. In the event of
such a dispute, the Client may only withhold that portion of the fee or expense that is subject to
the dispute. The Client shall notify ALPS in writing within ten (10) calendar days following the
receipt of each invoice with respect to which the Client has a dispute. If the Client does not
provide such notice of dispute within the required time, then the billing invoice will be deemed
accepted. The Client shall settle such disputed amounts within ten (10) business days from the day
upon which the parties agree on the amount to be paid, or at such later date as may be agreed upon
by ALPS, by payment of the agreed-upon amount. If no agreement is reached, then the Parties may
exercise their specific legal remedies.
5. Term. The term of this Agreement shall commence upon the Effective Date and shall
continue thereafter for two (2) years (the “Initial Term”), unless terminated sooner in
accordance herewith. After the Initial Term, this Agreement will renew automatically for additional
one year periods of time (each, a “Renewal Term”, and collectively with the Initial Term,
the “Term”), unless one Party hereto provides the other Party with written notice of
termination at least sixty (60) days prior to the expiration of the Initial Term or the
then-current Renewal Term
6. Indemnification. Each Party (the “Indemnifying Party”) hereby agrees to
indemnify and hold harmless the other Party (the “Indemnified Party”) against any and all
losses, costs and expenses (including reasonable attorney’s fees) that the Indemnified Party incurs
by reason or as a result of or arising from the breach by the Indemnifying Party of any
terms, provisions, covenants, warranties or representations contained herein and/or in connection
with the enforcement of this Agreement or any provision hereof.
7. Confidentiality. During the Term of this Agreement, each Party may be provided
access to selected information of the other Party, oral, written, or electronic, including but not
limited to information which relates or refers to the other Party’s: business planning; internal
controls; computer, data processing, or communications architectures or systems; electronic data
processing architectures, applications, programs, routines, or subroutines; business affairs and
methods of operation or proposed methods of operations, techniques or systems; or financial or
other non-public information of the other Party (hereinafter, “Confidential Information”).
Each Party agrees to treat confidentially and not disclose to any third parties (other than its
directors, managers, partners, officers, employees and agents who agree to be bound hereby) such
Confidential Information, and to only use such Confidential Information in performing under this
Agreement. The obligations set forth in this Section 7 shall survive for a period of three (3)
years from the termination of this Agreement; provided, however, that with respect to any
Confidential Information that would constitute a “trade secret”, the obligation of confidentiality
and non-use shall survive as long as such trade secret information is entitled to such treatment as
a matter of law.
In the event that a Party receives a subpoena or other validly issued administrative or
judicial process requesting Confidential Information, such Party shall provide actual notice and a
copy of the subpoena or other document(s) to the other Party within twenty-four (24) hours of such
receipt and shall not comply with such subpoena or other process until the earlier to occur of (1)
receiving written notification from the other Party that it may proceed or (2) the deadline for
complying.
The Parties acknowledge that, because of the nature of the Confidential Information, the owner
of such Confidential Information would suffer irreparable harm in the event of a material breach of
the provisions of this Agreement and that monetary damages would be inadequate to compensate such
Party for such a breach. As a result, in the event of any material breach or threatened material
breach by the other Party of any such provisions, the non-breaching Party shall be entitled, in
addition to such other legal or equitable remedies which might be available,
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to injunctive relief in any court of competent jurisdiction against the threatened material breach
or continuation of any such material breach without showing or proving any actual damages sustained
by the non-breaching Party.
8. Termination. Either Party may terminate this Agreement upon thirty (30) days
written notice to the other Party in the event of a material breach of this Agreement by the other
Party which is not cured by the end of such thirty (30) day.
9. Notices. All notices, invoices and other communications required or permitted to
be given under this Agreement shall be in writing and shall be deemed to have been duly given upon
actual receipt by the notified party either by hand, by facsimile (with evidence of receipt) or by
electronic (email) delivery, one (1) day following delivery to an overnight courier service (such
as United Parcel Service or Federal Express), or three (3) days following delivery to the U.S.
Postal Service if sent by certified mail, return receipt requested, at the address herein
identified above, or such other address as any Party hereto shall hereafter specify by written
notice to the other Party or Parties hereto.
10. Arbitration. All claims, disputes, controversies and other matters in question
between the parties to this Agreement arising out of or relating to this Agreement or the breach
thereof that cannot be resolved by the Parties shall be settled by binding arbitration in
accordance with this Agreement and the following procedures or such other procedures as may be
agreed upon by the Parties:
(a) Either Party may serve upon the other Party, in accordance with the notice procedures set
forth in Section 9 above, a written demand specifying in reasonable detail the nature of the matter
and that the claim, dispute, or controversy or other matter in question shall be submitted to
arbitration. The demand shall be made within a reasonable time after the claim, dispute,
controversy or other matter in question has arisen. In no event shall the demand for arbitration
be made after the date when institution of legal or equitable proceedings, based upon such claim,
dispute, controversy or other matter in question, would be barred by the applicable statute of
limitations or by laches.
(b) After service of a demand for arbitration, the Parties shall attempt to agree upon a
single arbitrator within ten (10) calendar days or such longer period as the parties may agree.
(c) In the event the Parties cannot agree upon a single arbitrator within the period
established under paragraph (b) above, then each Party shall appoint one arbitrator within an
additional ten (10) calendar days and notify the other Party of such appointment. If either Party
fails to timely appoint an arbitrator, then the arbitrator appointed by the other Party shall be
the sole arbitrator. If, however, both Parties appoint an arbitrator, then a third arbitrator
shall be selected within ten (10) calendar days thereafter by the first two arbitrators unless
otherwise agreed by the Parties. If the arbitrators and the Parties fail to appoint a third
arbitrator, either Party may request the American Arbitration Association or any federal or local
court in Denver,
Colorado to appoint the third arbitrator.
(d) Except as otherwise provided herein, any arbitration proceeding shall be conducted in
accordance with the rules and procedures of the American Arbitration Association or such other
rules and procedures as are agreed to by the arbitrators or the Parties. Nothing
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contained herein shall be construed as requiring submission of any claim, dispute, controversy or
other matter in question to the American Arbitration Association.
(e) The arbitration proceeding shall be held in Denver,
Colorado, unless otherwise agreed by
the arbitrators or the Parties.
(f) The decision rendered through arbitration shall be final and binding upon the Parties
hereto, and judgment may be entered in accordance with applicable law in any court having
jurisdiction thereof. In rendering a decision, the arbitrators shall be governed by the terms of
this Agreement.
(g) Although the Parties agree that compulsory and binding arbitration shall be the exclusive
means of dispute resolution, judicial review of any arbitration decision or proceeding (other than
entry or enforcement of an arbitration award/judgment) or of any matter arising under the terms of
this Agreement, whether or not submitted to the binding arbitration process required by this
Agreement, shall be brought solely in the federal or state courts in Denver,
Colorado.
(h) The foregoing procedures shall not preclude either Party from pursuing all available legal
remedies for infringement of a registered patent, trademark, service xxxx, or copyright.
11. Governing Law. This Agreement shall be deemed to have been made in the State of
Colorado, and shall be governed by, construed and enforced in accordance with the law of the State
of
Colorado, without reference to principles of conflicts of laws thereof.
12. Captions. The section headings used in this Agreement are intended solely for
convenience of reference and shall not in any way or manner amplify, limit, modify or otherwise be
used in the interpretation of any of the provisions of this Agreement. The masculine, feminine, or
neuter gender and the singular or plural number shall be deemed to include the others whenever the
context so indicates or requires.
13. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original and all of which counterparts together shall constitute but one
and the same instrument.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their
respective duly authorized officers as of the date initially set forth above.
| | | | | | | | | | | |
| ALPS Fund Services, Inc. | | | | GreenHaven Commodity Services, LLC | | |
|
| | | | | | | | | | |
| By:
| | | | | | By: | | | | |
|
| |
| | | | | | | | |
|
| | Xxxxxx X. Xxxxxx
| | | | | | Xxxxxxx F, Xxxxxxx III | | |
|
| | Managing Director
| | | | | | Manager | | |
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EXHIBIT A
The Services
ALPS will provide the following Services to the Funds:
Marketing Staff:
| | | | – Write, design and produce NASD-approved sales and marketing materials. |
| |
| | | | – Create NASD-approved seminars and product presentations. |
| |
| | | | – Coordinate advisor specific advertising with advertising agency. |
| |
| | | | – Manage marketing budget. |
| |
| | | | – Create and maintain website. |
Registered Representative Call Center:
| | | | – Outbound follow-up calls on 100% of phone and internet requests for information. |
| |
| | | | – Receive creation/redemption call & communicate with AP/Advisor/Custodian. |
| |
| | | | – Transfer “hot” advisor leads to internal wholesaler. |
| |
| | | | – Support dedicated GEMS toll free line for advisors. |
Five (5) Internal Wholesalers:
| | | | – Support National Accounts Manager’s and wholesalers field activities. |
| |
| | | | – Telemarket to independent financial planners. |
| |
| | | | – Coordinate conference participation. |
| |
| | | | – Attend various conferences. |
Ten (10) External Wholesalers
Assist the national accounts manager in implementing the tactical sales strategy.
| | | | – Establish regional relationships with wire houses and fee based advisors. |
| |
| | | | – Deliver product education presentations. |
| |
| | | | – Conduct product education presentations with wire house
brokers and fee based financial advisors. |
| |
| | | | – Attend major fee based advisor conferences. |
ALPS Senior Management:
| | | | – Develop overall strategic sales and marketing plan with National
Accounts Manager, Advisor and Specialist firm. |
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| | | | – Supervise sales related activities. |
| |
| | | | – Participate in field sales activities. |
National Accounts Manager:
| | | | – Implement tactical sales strategy. |
| |
| | | | – Establish home office contacts with targeted broker/dealers. |
Develop product education presentations.
| | | | – Conduct product education presentations with fee based financial advisors. |
| |
| | | | – Attend major fee based advisor conferences. |
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EXHIBIT B
Fees
| | | | | |
| Master Fund Assets | | ALPS Fees as a % of Management Fees |
| $0-100,000,000
| | | 6 | % |
| $100,000,000-$200,000,000
| | | 8 | % |
| $200,000,000-$500,000,000
| | | 10 | % |
| $500,000,000-$1,000,000,000
| | | 12 | % |
| $1,000,000,000+
| | | 18 | % |
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