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<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As filed with the Securities and Exchange
Commission on March 25, 2013 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Registration No. 333- </B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES SECURITIES AND EXCHANGE
COMMISSION </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Washington, D.C. 20549 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM S-1 </B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>REGISTRATION STATEMENT </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>UNDER </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>THE SECURITIES ACT OF 1933 </I></B></P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>United States Brent Oil Fund, LP </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Exact Name of Registrant as Specified
in Its Charter) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 32%; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Delaware</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 2%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 32%; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>6770</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 2%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 32%; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>27-0925904</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>(State or Other
    Jurisdiction of</B></FONT><FONT STYLE="font-size: 8pt"><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Incorporation or Organization)</B></FONT></FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>(Primary Standard
    Industrial</B></FONT><FONT STYLE="font-size: 8pt"><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Classification Code Number)</B></FONT></FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>(I.R.S. Employer</B></FONT><FONT STYLE="font-size: 8pt"><BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Identification Number)</B></FONT></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 48%; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>United States Commodity Funds LLC</B></FONT><BR>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>1999 Harrison Street, Suite 1530</B></FONT><BR>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Oakland, California 94612</B></FONT><BR>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>510.522.9600</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 48%; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Nicholas D. Gerber</B></FONT><BR>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>1999 Harrison Street, Suite 1530</B></FONT><BR>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Oakland, California 94612</B></FONT><BR>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>510.522.9600</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>(Address, Including
    Zip Code, and Telephone Number, Including<BR>
Area Code, of Registrant&rsquo;s Principal Executive Offices)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>(Name, Address,
    Including Zip Code, and Telephone Number,<BR>
Including Area Code, of Agent for Service)</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>Copies to: </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>W. Thomas Conner, Esq. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Reed Smith LLP </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>1301 K. Street, N.W. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Washington, DC 20005-3317 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>202.414.9208 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Approximate date of commencement of
proposed sale to the public:</B> As soon as practicable after this registration statement becomes effective.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under
the Securitie<B>s</B> Act of 1933, check the following box. </FONT><FONT STYLE="font-family: Wingdings">x</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act of 1933,
check the following box and list the Securities Act registration statement number of the earlier effective registration statement
for the same offering. </FONT><FONT STYLE="font-family: Wingdings">&uml;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act of 1933, check the following box
and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
</FONT><FONT STYLE="font-family: Wingdings">&uml;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif"> </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act of 1933, check the following box
and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
</FONT><FONT STYLE="font-family: Wingdings">&uml;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif"> </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions
of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer&rdquo; and &ldquo;smaller reporting company&rdquo; in Rule 12b-2
of the Exchange Act. (Check one):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Large accelerated filer </FONT><FONT STYLE="font: 10pt Wingdings">&uml;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Accelerated filer </FONT><FONT STYLE="font: 10pt Wingdings">&uml;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Non-accelerated filer </FONT><FONT STYLE="font: 10pt Wingdings">x</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Smaller reporting company </FONT><FONT STYLE="font: 10pt Wingdings">&uml;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: 0in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: 0in"><B>CALCULATION
OF REGISTRATION FEE </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 9pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Title of Each Class of Securities to Be Registered</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Amount to Be<BR> Registered</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Proposed Maximum<BR> Offering Price<BR> Per Unit</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Proposed Maximum<BR> Aggregate<BR> Offering Price</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Amount of<BR> Registration Fee</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 48%; text-align: left">Units of United States Brent Oil Fund, L.P.</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">*</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">*</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">*</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">*</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.75pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.75pt">* Pursuant to Rule 416(a)(6) under the
Securities Act of 1933, the Registrant is carrying forward unsold securities previously registered in connection with File No.
333-162015. The Registrant previously registered 50,000,000 units in connection with File No. 333-162015, for which it paid $139,500
in registration fees. The amount of unsold units remaining that is being applied to this registration statement is 45,450,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.75pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The registrant hereby amends this Registration
Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment
which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Securities and Commission,
acting pursuant to said Section 8(a), may determine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">File No. 333-</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>PROSPECTUS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 24pt"><B>United
States Brent Oil Fund</B></FONT><B><FONT STYLE="font-size: 18pt"><SUP>&reg;</SUP></FONT><FONT STYLE="font-size: 24pt">, LP </FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>45,450,000 Units </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt">United States Brent Oil Fund, LP, a Delaware
limited partnership, is a commodity pool that issues units that may be purchased and sold on the NYSE Arca, Inc. (&ldquo;NYSE Arca&rdquo;).
United States Brent Oil Fund, LP is referred to as USBO throughout this document. The investment objective of USBO is for the daily
changes in percentage terms of its units&rsquo; net asset value to reflect the daily changes in percentage terms of the spot price
of Brent crude oil as measured by the daily changes in the price of the futures contract on Brent crude oil as traded on the ICE
Futures Exchange that is the near month contract to expire, except when the near month contract is within two weeks of expiration,
in which case the futures contract will be the next month contract to expire, less USBO&rsquo;s expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt">The units may be purchased from USBO only
in one or more blocks of 50,000 units as described in &ldquo;Creation and Redemption of Units.&rdquo; A block of 50,000 units is
called a Basket. USBO issues and redeems Baskets called &ldquo;creation baskets&rdquo; or &ldquo;redemption baskets&rdquo;, as
the case may be, from certain authorized purchasers as described in &ldquo;Plan of Distribution.&rdquo; The price of a creation
baskets or a redemption basket is equal to the net asset value of 50,000 units on the day that the order to create the creation
basket or redeem the redemption basket is accepted by the marketing agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt">Authorized purchasers that purchase creation
baskets may offer and sell units from these baskets to the public at prices that are expected to reflect, among other factors,
the trading price of units on the NYSE Arca, the net asset value of USBO and the supply and demand for units at the time of sale.
The difference between the price paid by authorized purchasers as underwriters and the price paid to such authorized purchasers
by investors will be deemed underwriting compensation. Authorized purchasers will not receive from USBO or any of its affiliates,
any fee or other compensation in connection with the sale of units. USBO will continuously offer creation baskets consisting of
50,000 units to authorized purchasers through ALPS Distributors, Inc., which is the marketing agent. A list of USBO&rsquo;s current
authorized purchasers is available from the marketing agent. Authorized purchasers will pay a transaction fee of $350 through May
1, 2014 for each order to create one or more baskets; on May 2, 2014 and after, the transaction fee will be $1,000. The units are
listed on the NYSE Arca under the symbol &ldquo;BNO.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt"><B>USBO is not a mutual fund registered
under the Investment Company Act of 1940 and is not subject to regulation under such Act. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt">Some of the risks of investing in USBO
include:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.55pt"></TD><TD STYLE="width: 12.25pt">&bull;</TD><TD>Investing in crude oil interests subjects USBO to the risks of the crude oil industry which could result in large fluctuations
in the price of USBO&rsquo;s units.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.55pt"></TD><TD STYLE="width: 12.25pt">&bull;</TD><TD>If certain correlations do not exist, then investors may not be able to use USBO as a cost-effective way to invest indirectly
in crude oil or as a hedge against the risk of loss in crude oil-related transactions.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.55pt"></TD><TD STYLE="width: 12.25pt">&bull;</TD><TD>USBO does not expect to make cash distributions.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.55pt"></TD><TD STYLE="width: 12.25pt">&bull;</TD><TD>USBO and its general partner may have conflicts of interest, which may permit them to favor their own interests to your detriment.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt">This is a best efforts offering; the marketing
agent is not required to sell any specific number or dollar amount of units, but will use its best efforts to sell units. An authorized
purchaser is under no obligation to purchase units. This is intended to be a continuous offering and is not expected to terminate
until all of the registered units have been sold or three years from the date of the prospectus, whichever is earlier, although
the offering may be temporarily suspended if and when no suitable investments for USBO are available or practicable. In no event
may the aggregate compensation paid to the Marketing Agent and any affiliate of the General Partner for distribution related services
in connection with this offering exceed ten percent (10%) of the gross proceeds of this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt"><B>Investing in USBO involves other significant
risks. See &ldquo;What Are the Risk Factors Involved with an Investment in USBO?&rdquo; beginning on page <U>8</U> . </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt"><B>NEITHER THE SECURITIES AND EXCHANGE
COMMISSION (&ldquo;SEC&rdquo;) NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THE SECURITIES OFFERED IN THIS
PROSPECTUS, OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt"><B>THE COMMODITY FUTURES TRADING COMMISSION
HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN THIS POOL NOR HAS THE COMMISSION PASSED ON THE ADEQUACY OR ACCURACY OF THIS
DISCLOSURE DOCUMENT. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt"><B>This prospectus is in two parts: a
disclosure document and a statement of additional information. These parts are bound together, and both contain important information.
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt"></P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 18.35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in; text-align: center; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 95%; font: 10pt Times New Roman, Times, Serif; margin-left: 18.35pt">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Per&nbsp;Unit</B></P>

</TD><TD NOWRAP STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Per Basket</B></P>

</TD><TD NOWRAP STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 70%; text-indent: -12pt; padding-left: 12pt">Price of the units*</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 12%; text-align: center">$81.49</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left"></TD><TD STYLE="width: 12%; text-align: center">$4,074,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6.1pt; text-indent: -6.1pt">&nbsp;</P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6.1pt; text-indent: -6.1pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6.1pt; text-indent: -6.1pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 6.1pt">*</TD><TD>Based on closing net asset value on March 22, 2013. The price may vary based on the net asset value on a particular
                                                         day.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>The date of this prospectus is May 1,
2013. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>COMMODITY FUTURES TRADING COMMISSION
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>RISK DISCLOSURE STATEMENT </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>YOU SHOULD CAREFULLY CONSIDER WHETHER
YOUR FINANCIAL CONDITION PERMITS YOU TO PARTICIPATE IN A COMMODITY POOL. IN SO DOING, YOU SHOULD BE AWARE THAT COMMODITY INTEREST
TRADING CAN QUICKLY LEAD TO LARGE LOSSES AS WELL AS GAINS. SUCH TRADING LOSSES CAN SHARPLY REDUCE THE NET ASSET VALUE OF THE POOL
AND CONSEQUENTLY THE VALUE OF YOUR INTEREST IN THE POOL. IN ADDITION, RESTRICTIONS ON REDEMPTIONS MAY AFFECT YOUR ABILITY TO WITHDRAW
YOUR PARTICIPATION IN THE POOL.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>FURTHER, COMMODITY POOLS MAY BE SUBJECT
TO SUBSTANTIAL CHARGES FOR MANAGEMENT, AND ADVISORY AND BROKERAGE FEES. IT MAY BE NECESSARY FOR THOSE POOLS THAT ARE SUBJECT TO
THESE CHARGES TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF THEIR ASSETS. THIS DISCLOSURE DOCUMENT CONTAINS
A COMPLETE DESCRIPTION OF EACH EXPENSE TO BE CHARGED THIS POOL AT PAGE 60 AND A STATEMENT OF THE PERCENTAGE RETURN NECESSARY TO
BREAK EVEN, THAT IS, TO RECOVER THE AMOUNT OF YOUR INITIAL INVESTMENT, AT PAGE 4.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>THIS BRIEF STATEMENT CANNOT DISCLOSE
ALL THE RISKS AND OTHER FACTORS NECESSARY TO EVALUATE YOUR PARTICIPATION IN THIS COMMODITY POOL. THEREFORE, BEFORE YOU DECIDE TO
PARTICIPATE IN THIS COMMODITY POOL, YOU SHOULD CAREFULLY STUDY THIS DISCLOSURE DOCUMENT, INCLUDING A DESCRIPTION OF THE PRINCIPAL
RISK FACTORS OF THIS INVESTMENT, AT PAGE 3.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>YOU SHOULD ALSO BE AWARE THAT THIS COMMODITY
POOL MAY TRADE FOREIGN FUTURES OR OPTIONS CONTRACTS. TRANSACTIONS ON MARKETS LOCATED OUTSIDE THE UNITED STATES, INCLUDING MARKETS
FORMALLY LINKED TO A UNITED STATES MARKET, MAY BE SUBJECT TO REGULATIONS WHICH OFFER DIFFERENT OR DIMINISHED PROTECTION TO THE
POOL AND ITS PARTICIPANTS. FURTHER, UNITED STATES REGULATORY AUTHORITIES MAY BE UNABLE TO COMPEL THE ENFORCEMENT OF THE RULES OF
REGULATORY AUTHORITIES OR MARKETS IN NON-UNITED STATES JURISDICTIONS WHERE TRANSACTIONS FOR THE POOL MAY BE EFFECTED.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>SWAPS TRANSACTIONS, LIKE OTHER FINANCIAL
TRANSACTIONS, INVOLVE A VARIETY OF SIGNIFICANT RISKS. THE SPECIFIC RISKS PRESENTED BY A PARTICULAR SWAP TRANSACTION NECESSARILY
DEPEND UPON THE TERMS OF THE TRANSACTION AND YOUR CIRCUMSTANCES. IN GENERAL, HOWEVER, ALL SWAPS TRANSACTIONS INVOLVE SOME COMBINATION
OF MARKET RISK, CREDIT RISK, COUNTERPARTY CREDIT RISK, FUNDING RISK, LIQUIDITY RISK, AND OPERATIONAL RISK.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>HIGHLY CUSTOMIZED SWAPS TRANSACTIONS
IN PARTICULAR MAY INCREASE LIQUIDITY RISK, WHICH MAY RESULT IN A SUSPENSION OF REDEMPTIONS. HIGHLY LEVERAGED TRANSACTIONS MAY EXPERIENCE
SUBSTANTIAL GAINS OR LOSSES IN VALUE AS A RESULT OF RELATIVELY SMALL CHANGES IN THE VALUE OR LEVEL OF AN UNDERLYING OR RELATED
MARKET FACTOR.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>IN EVALUATING THE RISKS AND CONTRACTUAL
OBLIGATIONS ASSOCIATED WITH A PARTICULAR SWAP TRANSACTION, IT IS IMPORTANT TO CONSIDER THAT A SWAP TRANSACTION MAY BE MODIFIED
OR TERMINATED ONLY BY MUTUAL CONSENT OF THE ORIGINAL PARTIES AND SUBJECT TO AGREEMENT ON INDIVIDUALLY NEGOTIATED TERMS. THEREFORE,
IT MAY NOT BE POSSIBLE FOR THE COMMODITY POOL OPERATOR TO MODIFY, TERMINATE, OR OFFSET THE POOL&rsquo;S OBLIGATIONS OR THE POOL&rsquo;S
EXPOSURE TO THE RISKS ASSOCIATED WITH A TRANSACTION PRIOR TO ITS SCHEDULED TERMINATION DATE.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES BRENT OIL FUND, LP </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TABLE OF CONTENTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 92%; padding-left: 0.1in">&nbsp;</TD>
    <TD STYLE="width: 8%; border-bottom: windowtext 1pt solid; padding-left: 0.1in; text-align: right">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Page</B></P></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt">PROSPECTUS SUMMARY</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">1</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Overview of USBO</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">1</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Principal Offices of USBO and the General Partner</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">3</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Principal Investment Risks of an Investment in USBO</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">3</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Financial Condition of USBO</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">4</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Defined Terms</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">4</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Breakeven Analysis</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">4</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">The Offering</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">6</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt">WHAT ARE THE RISK FACTORS INVOLVED WITH AN INVESTMENT IN USBO?</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">8</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Risks Associated With Investing Directly or Indirectly in Crude Oil</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">8</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">USBO&rsquo;s Operating Risks</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">12</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Risk of Leverage and Volatility</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">17</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Over-the-Counter Contract Risk</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">18</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Risk of Trading in International Markets</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">18</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Tax Risk</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">19</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt">THE OFFERING</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">21</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">What is USBO?</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">21</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Who is the General Partner?</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">21</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Compensation to the General Partner and Other Compensation</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">24</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Director Compensation</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">24</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Market Price of Units</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">25</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Prior Performance of USBO</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">25</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Prior Performance of the General Partner and Related Public Funds</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">29</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Other Related Commodity Trading and Investment Management Experience</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">42</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">How Does USBO Operate?</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">42</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">What Is USBO&rsquo;s Investment Strategy?</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">50</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">What are Futures Contracts?</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">51</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">What is the Crude Oil Market and the Petroleum-Based Fuel Market?</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">54</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Why Does USBO Purchase and Sell Futures Contracts?</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">55</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">What is the Flow of Units?</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">56</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">What are the Trading Policies of USBO?</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">56</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Who are the Service Providers?</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">57</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Fees of USBO</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">60</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Form of Units</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">60</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Transfer of Units</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">61</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Withdrawal of Limited Partners</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">62</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">What is the Plan of Distribution?</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">62</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Calculating NAV</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">63</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Creation and Redemption of Units</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">64</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Use of Proceeds</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">68</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Limited Partnership Agreement</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">68</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">The General Partner Has Conflicts of Interest</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">70</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">The General Partner&rsquo;s Responsibilities and Remedies</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">71</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Liability and Indemnification</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">72</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Provisions of Law</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">72</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Books and Records</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">73</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 92%; padding-left: 0.5in; text-indent: -12.25pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 8%; border-bottom: windowtext 1pt solid; padding-left: 0.1in; text-align: right">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Page</B></P></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12.25pt"><FONT STYLE="font-size: 10pt">Analysis of Critical Accounting Policies</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">73</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Statements, Filings, and Reports</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">73</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Reports to Limited Partners</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">73</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Fiscal Year</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">74</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Governing Law; Consent to Delaware Jurisdiction</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">74</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Security Ownership of Principal Unitholders and Management</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">74</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Legal Matters</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">74</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Experts</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">74</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Privacy Policy</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">75</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">U.S. Federal Income Tax Considerations</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">75</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Backup Withholding</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">82</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Other Tax Considerations</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">82</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Investment by ERISA Accounts</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">82</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt">INFORMATION YOU SHOULD KNOW</FONT></TD>
    <TD NOWRAP STYLE="text-align: right"><FONT STYLE="font-size: 10pt">84</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt">STATEMENT REGARDING FORWARD-LOOKING STATEMENTS</FONT></TD>
    <TD NOWRAP STYLE="text-align: right"><FONT STYLE="font-size: 10pt">84</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt">WHERE YOU CAN FIND MORE INFORMATION</FONT></TD>
    <TD NOWRAP STYLE="text-align: right"><FONT STYLE="font-size: 10pt">85</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt">INCORPORATION BY REFERENCE OF CERTAIN INFORMATION</FONT></TD>
    <TD NOWRAP STYLE="text-align: right"><FONT STYLE="font-size: 10pt">85</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt">SUMMARY OF PROMOTIONAL AND SALES MATERIAL</FONT></TD>
    <TD NOWRAP STYLE="text-align: right"><FONT STYLE="font-size: 10pt">86</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt">INTELLECTUAL PROPERTY</FONT></TD>
    <TD NOWRAP STYLE="text-align: right"><FONT STYLE="font-size: 10pt">86</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt">APPENDIX A</FONT></TD>
    <TD NOWRAP STYLE="padding-left: 12pt; text-align: right; text-indent: -12pt"><FONT STYLE="font-size: 10pt">A-1</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Glossary of Defined
Terms</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-left: 12pt; text-align: right; text-indent: -12pt"><FONT STYLE="font-size: 10pt">A-1</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt">APPENDIX B</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">B-1</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-indent: -12pt"><FONT STYLE="font-size: 10pt">United States Brent Oil Fund, LP, Third Amended and Restated Agreement of Limited Partnership (Including Exhibits Thereto)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">B-1</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt">STATEMENT OF ADDITIONAL INFORMATION</FONT></TD>
    <TD NOWRAP STYLE="text-align: right"><FONT STYLE="font-size: 10pt">SAI-1</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROSPECTUS SUMMARY </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>This is only a summary of the prospectus
and, while it contains material information about USBO and its units, it does not contain or summarize all of the information about
USBO and the units contained in this prospectus that is material and/or which may be important to you. You should read this entire
prospectus, including &ldquo;What Are the Risk Factors Involved with an Investment in USBO?&rdquo; beginning on page <U>8</U>,
before making an investment decision about the units. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Overview of USBO </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">United States Brent Oil Fund, LP, a Delaware
limited partnership (&ldquo;USBO&rdquo; or &ldquo;Us&rdquo; or &ldquo;We&rdquo;), is a commodity pool that issues units that may
be purchased and sold on the NYSE Arca. USBO is managed and controlled by its general partner, United States Commodity Funds LLC
(formerly known as Victoria Bay Asset Management, LLC) (&ldquo;General Partner&rdquo;). The General Partner is a single member
limited liability company formed in Delaware on May&nbsp;10, 2005, that is registered as a commodity pool operator (&ldquo;CPO&rdquo;)
with the Commodity Futures Trading Commission (&ldquo;CFTC&rdquo;) and is a member of the National Futures Association (&ldquo;NFA&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The net assets of USBO consist primarily
of investments in futures contracts for crude oil, heating oil, gasoline, natural gas and other petroleum-based fuels that are
traded on the ICE Futures Exchange, New York Mercantile Exchange (the &ldquo;NYMEX&rdquo;), or other U.S. and foreign exchanges
(collectively, &ldquo;Futures Contracts&rdquo;), and to a lesser extent, in order to comply with regulatory requirements or in
view of market conditions, other crude oil-related investments such as cash-settled options on Futures Contracts, forward contracts
for crude oil, cleared swap contracts and over-the-counter transactions that are based on the price of crude oil and other petroleum-based
fuels, Futures Contracts and indices based on the foregoing (collectively, &ldquo;Other Crude Oil-Related Investments&rdquo;).
Market conditions that the General Partner currently anticipates could cause USBO to invest in Other Crude Oil-Related Investments
include those allowing USBO to obtain greater liquidity or to execute transactions with more favorable pricing. For convenience
and unless otherwise specified, Futures Contracts and Other Crude Oil-Related Investments collectively are referred to as &ldquo;Crude
Oil Interests&rdquo; in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The investment objective of USBO is for
the daily changes in percentage terms of its units&rsquo; net asset value (&ldquo;NAV&rdquo;) to reflect the daily changes in percentage
terms of the spot price of Brent crude oil as measured by the daily changes in the price of the futures contract on Brent crude
oil as traded on ICE Futures Exchange that is the near month contract to expire, except when the near month contract is within
two weeks of expiration, in which case the futures contract will be the next month contract to expire (the &ldquo;Benchmark Futures
Contract&rdquo;), less USBO&rsquo;s expenses. It is not the intent of USBO to be operated in a fashion such that its NAV will equal,
in dollar terms, the dollar price of spot crude oil or any particular futures contract based on crude oil. It is not the intent
of USBO to be operated in a fashion such that its NAV will reflect the percentage change of the price of any particular futures
contract as measured over a time period greater than any day. The General Partner believes that it is not practical to manage the
portfolio to achieve such an investment goal when investing in Futures Contracts and other Crude-Oil Related Investments. USBO
may invest in interests other than the Benchmark Futures Contract to comply with accountability levels and position limits. For
a detailed discussion of accountability levels and position limits, see &ldquo;What are Futures Contracts?&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In order for a hypothetical investment
in units to break even over the next 12 months, assuming a selling price of $86.06 per unit, the investment would have to generate
a 0.92% return. For more information, see &ldquo;&mdash; Breakeven Analysis.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner endeavors to place
USBO&rsquo;s trades in Futures Contracts and Other Crude Oil-Related-Investments and otherwise manage USBO&rsquo;s investments
so that &ldquo;A&rdquo; will be within plus/minus 10 percent of &ldquo;B&rdquo;, where:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>A is the average daily change in USBO&rsquo;s NAV for any period of 30 successive valuation days, <I>i.e.,</I> any NYSE Arca
trading day as of which USBO calculates its NAV; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>B is the average daily change in the price of the Benchmark Futures Contract over the same period.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner believes that market
arbitrage opportunities cause daily changes in USBO&rsquo;s unit price on the NYSE Arca to closely track daily changes in USBO&rsquo;s
NAV per unit. The General Partner further believes that the daily changes in prices of the Benchmark Future Contract have historically
tracked the daily changes in the spot price of Brent crude oil. The General Partner believes that the net effect of these two expected
relationships and the relationships described above between USBO&rsquo;s NAV and the Benchmark Futures Contract will be the daily
changes in the price of USBO&rsquo;s units on NYSE Arca will closely track, in percentage terms, the daily changes in the spot
price of Brent crude oil, less USBO&rsquo;s expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner employs a &ldquo;neutral&rdquo;
investment strategy intended to track the changes in the price of the Benchmark Futures Contract regardless of whether the price
goes up or goes down. USBO&rsquo;s &ldquo;neutral&rdquo; investment strategy is designed to permit investors generally to purchase
and sell USBO&rsquo;s units for the purpose of investing indirectly in Brent crude oil in a cost-effective manner, and/or to permit
participants in the crude oil or other industries to hedge the risk of losses in their Brent crude oil-related transactions. Accordingly,
depending on the investment objective of an individual investor, the risks generally associated with investing in Brent crude oil
and/or the risks involved in hedging may exist. In addition, an investment in USBO involves the risk that the changes in the price
of USBO&rsquo;s units will not accurately track the changes in the price of the Benchmark Futures Contract, and that changes in
the Benchmark Futures Contract will not closely correlate with changes in the spot price of Brent crude oil. If the Benchmark Futures
Contract does not correlate with the spot price of Brent crude oil, this could cause changes in the price of USBO&rsquo;s units
to substantially vary from the changes in the spot price of Brent crude oil. If this were to occur, then investors may not be able
to effectively use USBO as a way to hedge against crude oil-related losses or as a way to indirectly invest in crude oil. In addition,
the price relationship between the near month contract and the next month contract that compose the Benchmark Futures Contract
will vary and may impact both the total return over time of USBO&rsquo;s NAV, as well as the degree to which its total return tracks
other crude oil price indices&rsquo; total returns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Benchmark Futures Contract is changed
from the near month contract to the next month contract over a four-day period.&nbsp;Each month the Benchmark Futures Contract
changes starting at the end of the day on the date two weeks prior to expiration of the near month contract for that month.&nbsp;The
anticipated dates that the monthly four-day roll period will commence are posted on USBO&rsquo;s website at www.unitedstatesbrentoilfund.com,
and are subject to change without notice. During the first three days of the period, the applicable value of the Benchmark Futures
Contract is based on a combination of the near month contract and the next month contract as follows:&nbsp;(1) day 1 consists of
75% of the then near month contract&rsquo;s price plus 25% of the price of the next month contract, divided by 75% of the near
month contract&rsquo;s prior day&rsquo;s price plus 25% of the price of the next month contract,&nbsp;(2)&nbsp;day 2 consists of
50% of the then near month contract&rsquo;s price plus 50% of the price of the next month contract, divided by 50% of the near
month contract&rsquo;s prior day&rsquo;s price plus 50% of the price of the next month contract, and (3)&nbsp;day 3 consists of
25% of the then near month contract&rsquo;s price plus 75% of the price of the next month contract, divided by 25% of the near
month contract&rsquo;s prior day&rsquo;s price plus 75% of the price of the next month contract.&nbsp;On day 4, the Benchmark Futures
Contract is the next month contract to expire at that time and that contract remains the Benchmark Futures Contract until the beginning
of the following month&rsquo;s change in the Benchmark Futures Contract over a four-day period. On each day during the four-day
period, the General Partner anticipates it will &ldquo;roll&rdquo; USBO&rsquo;s positions in Crude Oil Interests by closing, or
selling, a percentage of USBO&rsquo;s positions in Crude Oil Interests and reinvesting the proceeds from closing those positions
in new Crude Oil Interests that reflect the change in the Benchmark Futures Contract.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO issues units only in blocks of 50,000
units called Creation Baskets and redeems units only in blocks of 50,000 units called Redemption Baskets. Only Authorized Purchasers
may purchase or redeem Creation Baskets or Redemption Baskets, respectively. An Authorized Purchaser is under no obligation to
create or redeem baskets, and an Authorized Purchaser is under no obligation to offer to the public units of any baskets it does
create. Baskets are generally created when there is a demand for units, including, but not limited to, when the market price per
unit is at a premium to the NAV per unit. Authorized Purchasers will then sell such units, which will be listed on the NYSE Arca,
to the public at per unit offering prices that are expected to reflect, among other factors, the trading price of the units on
the NYSE Arca, the NAV of USBO at the time the Authorized Purchaser purchased the Creation Basket and the NAV at the time of the
offer of the units to the public, the supply of and demand for units at the time of sale, and the liquidity of the Futures Contracts
market and the market for Other Crude Oil-Related Investments. The prices of units offered by Authorized Purchasers are expected
to fall between USBO&rsquo;s NAV and the trading price of the units on the NYSE Arca at the time of sale. Similarly, Baskets are
generally redeemed when the market price per unit is at a discount to the NAV per unit. Retail investors seeking to purchase or
sell units on any day will effect such transactions in the secondary market, on the NYSE Arca, at the market price per unit, rather
than in connection with the creation or redemption of Baskets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">There is no specified limit on the maximum
amount of Creation Baskets that can be sold. At some point, accountability levels and position limits on certain of the Futures
Contracts in which USBO intends to invest may practically limit the number of Creation Baskets that will be sold if the General
Partner determines that the other investment alternatives available to USBO at that time will not enable it to meet its stated
investment objective.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In managing USBO&rsquo;s assets, the General
Partner does not use a technical trading system that automatically issues buy and sell orders. The General Partner instead employs
quantitative methodologies whereby each time one or more baskets are purchased or redeemed, the General Partner will purchase or
sell Futures Contracts and Other Crude Oil-Related Investments with an aggregate market value that approximates the amount of Treasuries
and/or cash received or paid upon the purchase or redemption of the Basket(s).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Note to Secondary Market Investors:</B>
The units can be directly purchased from or redeemed by USBO only in Creation Baskets or Redemption Baskets, respectively, and
only by Authorized Purchasers. Each Creation Basket and Redemption Basket consists of 50,000 units and is expected to be worth
millions of dollars. Individual investors, therefore, will not be able to directly purchase units from or redeem units with USBO.
Some of the information contained in this prospectus, including information about buying and redeeming units directly from and
to USBO is only relevant to Authorized Purchasers. Units are listed and traded on the NYSE Arca and may be purchased and sold as
individual units. Individuals interested in purchasing units in the secondary market should contact their broker. Units purchased
or sold through a broker may be subject to commissions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Except when aggregated in Redemption
Baskets, units are not redeemable securities. There is no guarantee that units will trade at or near the per-unit NAV. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Principal Offices of USBO and the General Partner </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO&rsquo;s principal office is located
at 1999 Harrison Street, Suite 1530, Oakland, CA, 94612. The General Partner&rsquo;s principal office is also located at 1999 Harrison
Street, Suite 1530, Oakland, CA, 94612. The telephone number for each of USBO and the General Partner is 510.522.9600.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Principal Investment Risks of an Investment in USBO </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">An investment in USBO involves a degree
of risk. Some of the risks you may face are summarized below. A more extensive discussion of these risks appears beginning on page
<U>8</U> .</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.95pt"></TD><TD STYLE="width: 18pt">&bull;</TD><TD>The price relationship between the near month contract to expire and the next month contract to expire that compose the Benchmark
Futures Contract will vary and may impact both the total return over time of USBO&rsquo;s NAV, as well as the degree to which its
total return tracks the Benchmark Futures Contract. In cases in which the near month contract&rsquo;s price is lower than the next
month contract&rsquo;s price (a situation known as &ldquo;contango&rdquo; in the futures market), then absent the impact of the
overall movement in Brent crude oil prices the value of the Benchmark Futures Contract would tend to decline as it approaches expiration.
In cases in which the near month contract&rsquo;s price is higher than the next month contract&rsquo;s price (a situation known
as &ldquo;backwardation&rdquo; in the futures market), then absent the impact of the overall movement in Brent crude oil prices
the value of the Benchmark Futures Contract would tend to rise as it approaches expiration. Assuming that spot crude oil prices
remain unchanged, and ignoring the impact of transaction costs, taxes, or other fees and expenses, USBO&rsquo;s total returns would
tend to see a negative impact from the crude oil futures market being in contango and would tend to see a positive impact from
the market being in backwardation.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.95pt"></TD><TD STYLE="width: 18pt">&bull;</TD><TD>Unlike mutual funds, commodity pools or other investment pools that manage their investments in an attempt to realize income
and gains and distribute such income and gains to their investors, USBO generally does not distribute cash to limited partners
or other unitholders. You should not invest in USBO if you will need cash distributions from USBO to pay taxes on your share of
income and gains of USBO, if any, or for any other reason.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.95pt"></TD><TD STYLE="width: 18pt">&bull;</TD><TD>Investors may choose to use USBO as a means of investing indirectly in Brent crude oil and there are risks involved in such
investments. The risks and hazards that are inherent in the crude oil industry may cause the price of crude oil to widely fluctuate.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.95pt"></TD><TD STYLE="width: 18pt">&bull;</TD><TD>To the extent that investors use USBO as a means of investing indirectly in Brent crude oil, there is the risk that the daily
changes in the price of USBO&rsquo;s units on NYSE Arca will not closely track the daily changes in the spot price of Brent crude
oil. This could happen if the price of units traded on the NYSE Arca does not correlate closely with USBO&rsquo;s NAV; the changes
in USBO&rsquo;s NAV do not correlate closely with the changes in the price of the Benchmark Futures Contract; or the changes in
the price of the Benchmark Futures Contract do not closely correlate with the changes in the cash or spot price of Brent crude
oil. This is a risk because if these correlations do not exist, then investors may not be able to use USBO as a cost-effective
way to invest indirectly in Brent crude oil or as a hedge against the risk of loss in crude oil-related transactions.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.95pt"></TD><TD STYLE="width: 18pt">&bull;</TD><TD>The structure and operation of USBO may involve conflicts of interest. For example, a conflict may arise because the General
Partner and its principals and affiliates may trade for themselves. In addition, the General Partner has sole current authority
to manage the investments and operations of USBO, which may create a conflict with the unitholders&rsquo; best interests. The General
Partner may also have a conflict to the extent that its trading decisions may be influenced by the effect they would have on the
United States Oil Fund, LP (&ldquo;USOF&rdquo;), the United States Natural Gas Fund, LP (&ldquo;USNG&rdquo;), the United States
12 Month Oil Fund, LP (&ldquo;US12OF&rdquo;), the United States Gasoline Fund, LP (&ldquo;UGA&rdquo;), the United States Diesel-Heating
Oil Fund, LP (&ldquo;USDHO&rdquo;), the United States Short Oil Fund, LP (USSO&rdquo;), the United States 12 Month Natural Gas
Fund, LP (&ldquo;US12NG&rdquo;), the United States Commodity Index Fund (&ldquo;USCI&rdquo;), the United States Metals Index Fund
(&ldquo;USMI&rdquo;), the United States Agriculture Index Fund (&ldquo;USAG&rdquo;), the United States Copper Index Fund (&ldquo;CPER&rdquo;),
and the United States Asian Commodities Basket Fund (&ldquo;UAC&rdquo;), or any other commodity pool the General Partner may form
and manage in the future. UAC has been declared effective by the regulatory agencies which have regulatory authority over the General
Partner and UAC, but at the time of filing this, UAC has not been made available to the public. USOF, USNG, US12OF, UGA, USDHO,
USSO, US12NG, USCI, USMI, USAG, CPER and UAC are referred to herein as the &ldquo;Related Public Funds.&rdquo;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.95pt"></TD><TD STYLE="width: 18pt">&bull;</TD><TD>USBO invests primarily in Futures Contracts, and particularly in Futures Contracts traded on the ICE Futures Exchange, which
involves certain risks including that changes in its NAV may not correlate with changes in the Benchmark Futures Contract.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.95pt"></TD><TD STYLE="width: 18pt">&bull;</TD><TD>USBO invests primarily in Futures Contracts that are traded outside the United States. Some non-U.S. markets present risks
because they are not subject to the same degree of regulation as their U.S. counterparts. In some of these non-U.S. markets, the
performance on a contract is the responsibility of the counterparty and is not backed by an exchange or clearing corporation and
therefore exposes USBO to credit risk. However, Futures Contracts traded on the ICE Futures Exchange, including the Benchmark Futures
Contract, are backed by the ICE Futures Exchange and do not expose USBO to the risks of some other non-U.S. exchanges or clearing
corporations. Trading in non-U.S. markets also leaves USBO susceptible to fluctuations in the value of the local currency against
the U.S. dollar for contracts not traded in U.S. dollars. The Benchmark Futures Contract, however, is traded in U.S. dollars and
does not expose USBO to the risk of currency fluctuations.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>You will have no rights to participate in the management of USBO and will have to rely on the duties and judgment of the General
Partner to manage USBO.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>USBO pays fees and expenses that are incurred regardless of whether it is profitable.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>USBO seeks to have the daily changes in its units&rsquo; NAV in percentage terms track the daily changes in the price of Brent
crude oil in percentage terms rather than profit from speculative trading of Crude Oil Interests. The General Partner therefore
endeavors to manage USBO&rsquo;s positions in Crude Oil Interests so that USBO&rsquo;s assets are, unlike those of other commodity
pools, not leveraged ( <I>i.e.,</I> so that the aggregate value of USBO&rsquo;s unrealized losses from its investments in such
Crude Oil Interests at any time will not exceed the value of USBO&rsquo;s assets). There is no assurance that the General Partner
will successfully implement this investment strategy. If the General Partner permits USBO to become leveraged, and if USBO&rsquo;s
trading positions suddenly turn unprofitable, you could lose all or substantially all of your investment. These movements in price
may be the result of factors outside of the General Partner&rsquo;s control and may not be anticipated by the General Partner.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>USBO may also invest in Other Crude Oil-Related Investments, many of which are negotiated contracts that are not as liquid
as Futures Contracts and expose USBO to credit risk that its counterparty may not be able to satisfy its obligations to USBO.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>Regulation of the commodity interest and energy markets is extensive and constantly changing. On July&nbsp;21, 2010, a broad
financial regulatory reform bill, &ldquo;The Dodd-Frank Wall Street Reform and Consumer Protection Act,&rdquo; was signed into
law that includes provisions altering the regulation of commodity interests. The CFTC, the SEC and other federal regulators, have
been tasked with developing the rules and regulations enacting the provisions noted above. The new law and the rules currently
being promulgated thereunder may negatively impact USBO&rsquo;s ability to meet its investment objective, either through limits
or requirements imposed on it or upon its counterparties.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>Cash or property will be distributed at the sole discretion of the General Partner, and the General Partner currently does
not intend to make cash or other distributions with respect to units. You will be required to pay U.S. federal income tax and,
in some cases, state, local or foreign income tax on your allocable share of USBO&rsquo;s taxable income, without regard to whether
you receive distributions or the amount of any distributions. Therefore, your tax liability with respect to your units may exceed
the amount of cash or value of property (if any) distributed.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">For additional risks, see &ldquo;What are
the Risk Factors Involved with an Investment in USBO?&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Financial Condition of USBO </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO&rsquo;s NAV is calculated shortly
after the close of the core trading session on the NYSE Arca.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Defined Terms </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">For a glossary of defined terms, see Appendix
A.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Breakeven Analysis </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The breakeven analysis below indicates
the approximate dollar returns and percentage required for the redemption value of a hypothetical investment in a single unit to
equal the amount invested twelve months after the investment was made. For purposes of this breakeven analysis, we have assumed
an initial selling price per unit of $86.06, which equals the net asset value per unit on January 31, 2013. This breakeven analysis
refers to the redemption of baskets by Authorized Purchasers and is not related to any gains an individual investor would have
to achieve in order to break even. The breakeven analysis is an approximation only.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 93%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 82%; text-align: left; text-indent: -12pt; padding-left: 12pt">Assumed initial selling price per unit</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">86.06</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt"><FONT STYLE="font-size: 10pt">Management Fee (0.75%)<SUP>(1)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.65</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt"><FONT STYLE="font-size: 10pt">Creation Basket Fee<SUP>(2)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.01</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt"><FONT STYLE="font-size: 10pt">Estimated Brokerage Fee (0.071%)<SUP>(3)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.06</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt"><FONT STYLE="font-size: 10pt">Interest Income (0.07%)<SUP>(4)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.07</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt"><FONT STYLE="font-size: 10pt">Independent Directors&rsquo; and Officers&rsquo; Fees<SUP>(5)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.02</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt"><FONT STYLE="font-size: 10pt">Fees and expenses associated with tax accounting and reporting<SUP>(6)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.14</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Amount of trading income (loss) required for the redemption value at the end of one year to equal the initial selling price of the unit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.79</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">Percentage of initial selling price per unit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.92</TD><TD STYLE="text-align: left">%</TD></TR>
</TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">(1)</TD><TD>USBO is contractually obligated to pay the General Partner a management fee based on daily net assets and paid monthly of 0.75%&nbsp;per
annum on average daily net assets.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">(2)</TD><TD>Authorized Purchasers are required to pay a Creation Basket fee of $350 for each order they place to create one or more baskets.
An order must be at least one basket, which is 50,000 units. This breakeven analysis assumes a hypothetical investment in a single
unit so the Creation Basket fee is $.01 (350/50,000).</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">(3)</TD><TD>This amount is based on the actual brokerage fees for USBO calculated on an annualized basis.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">(4)</TD><TD>USBO earns interest on funds it deposits with the futures commission merchant and the custodian and it estimates that the interest
rate will be 0.07% based on the current interest rate on three-month Treasury Bills as of January 31, 2013. The actual rate may
vary.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">(5)</TD><TD>The foregoing assumes that the assets of USBO are aggregated with those of USOF, USNG, US12OF, UGA, USDHO, USSO, US12NG, USMI,
USAG, USCI and CPER, that the aggregate fees paid to the independent directors in 2012 was $540,586, that the allocable portion
of the fees borne by USBO equals $9,844, and that USBO has $47,334,729 in assets, which is the amount of assets as of January 31,
2013.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">(6)</TD><TD>USBO assumed the aggregate costs attributable to tax accounting and reporting for 2012 was $75,000. The number in the break-even
table assumes USBO has $47,334,729 in assets which is the amount of assets as of January 31, 2013.</TD></TR></TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>THE OFFERING </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 38%; padding-left: 12.2pt; text-indent: -12.2pt"><FONT STYLE="font-size: 10pt">Offering: </FONT></TD>
    <TD STYLE="width: 62%"><FONT STYLE="font-size: 10pt">USBO is offering Creation Baskets consisting of 50,000 units through ALPS Distributors, Inc. (&ldquo;Marketing Agent&rdquo;) as marketing agent to Authorized Purchasers. Authorized Purchasers may purchase Creation Baskets consisting of 50,000 units at USBO&rsquo;s NAV. This is a continuous offering under Rule 415 of the Securities Act of 1933 (&ldquo;1933 Act&rdquo;) and is not expected to terminate until all of the registered units have been sold or three years from the date of the prospectus, whichever is earlier, although the offering may be temporarily suspended during such period when suitable investments for USBO are not available or practicable. It is anticipated that when all registered units have been sold pursuant to this registration statement, additional units will be registered in subsequent registration statements. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 38%; padding-left: 12.2pt; text-indent: -12.2pt"><FONT STYLE="font-size: 10pt">Use of Proceeds: </FONT></TD>
    <TD STYLE="width: 62%"><FONT STYLE="font-size: 10pt">The General Partner applies substantially all of USBO&rsquo;s assets toward trading in Futures Contracts and Other Crude Oil-Related Investments, and investing in Treasuries, cash and/or cash equivalents. The General Partner deposits a portion of USBO&rsquo;s net assets with the futures commission merchant, UBS Securities LLC, or other custodian to be used to meet its current or potential margin or collateral requirements in connection with its investment in Futures Contracts and Other Crude Oil-Related Investments. USBO uses only Treasuries, cash and/or cash equivalents to satisfy these requirements. The General Partner believes that all entities that hold or trade USBO&rsquo;s assets are based in the United States and are subject to United States regulations. Approximately 5% to 30% of USBO&rsquo;s assets will be committed as margin for Futures Contracts and collateral for Other Crude Oil-Related Investments. However, from time to time, the percentage of assets committed as margin/collateral may be substantially more, or less, than such range. The remaining portion of USBO&rsquo;s assets is held in Treasuries, cash and/or cash equivalents by its custodian, Brown Brothers Harriman&nbsp;&amp; Co. (the &ldquo;Custodian&rdquo;). All interest income earned on these investments is retained for USBO&rsquo;s benefit. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 38%; padding-left: 12.2pt; text-indent: -12.2pt"><FONT STYLE="font-size: 10pt">NYSE Arca Symbol: </FONT></TD>
    <TD STYLE="width: 62%"><FONT STYLE="font-size: 10pt">&ldquo;BNO&rdquo; </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 38%; padding-left: 12.2pt; text-indent: -12.2pt"><FONT STYLE="font-size: 10pt">Creation and Redemption: </FONT></TD>
    <TD STYLE="width: 62%"><FONT STYLE="font-size: 10pt; color: #231F20">Currently and through May 1, 2014, Authorized Purchasers pay a $350 fee for each order to create or redeem one or more Creation Baskets or Redemption Baskets; on and after May 2, 2014, the fee is $1,000. Authorized Purchasers are not required to sell any specific number or dollar amount of units. The per unit price of units offered in Creation Baskets on any particular day is the total NAV of USBO calculated shortly after the close of the core trading on the NYSE Arca on that day divided by the number of issued and outstanding units. The General Partner shall notify the Depository Trust Company (&ldquo;DTC&rdquo;) of any change in the transaction fee and will not implement any increase in the fee for Creation or Redemption Baskets until 30 days after the date of notice.</FONT><FONT STYLE="font-size: 10pt"> &nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 38%; padding-left: 12.2pt; text-indent: -12.2pt"><FONT STYLE="font-size: 10pt">Registration, Clearance and&nbsp;Settlement: </FONT></TD>
    <TD STYLE="width: 62%"><FONT STYLE="font-size: 10pt">Individual certificates will not be issued for the units. Instead, units will be represented by one or more global certificates, which will be deposited by the Custodian with the DTC and registered in the name of Cede&nbsp;&amp; Co., as nominee for DTC. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 38%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 62%"><FONT STYLE="font-size: 10pt">The administrator, Brown Brothers Harriman&nbsp;&amp; Co. (&ldquo;Administrator&rdquo;), has been appointed registrar and transfer agent for the purpose of registering and transferring units. The General Partner will recognize transfer of units only if such transfer is done in accordance with the LP Agreement, including the delivery of a transfer application. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 38%; padding-left: 12.2pt; text-indent: -12.2pt"><FONT STYLE="font-size: 10pt">Net Asset Value: </FONT></TD>
    <TD STYLE="width: 62%"><FONT STYLE="font-size: 10pt">The NAV is calculated by taking the current market value of USBO&rsquo;s total assets, subtracting any liabilities and dividing that number by the total number of outstanding units. Under USBO&rsquo;s current operational procedures, the Administrator calculates the NAV of USBO once each NYSE Arca trading day. The NAV for a particular trading day is released after 4:00 p.m. New York time. Trading during the core trading session of the NYSE Arca typically closes at 4:00 p.m. New York time. The Administrator uses the ICE Futures Exchange settlement price (a weighted average price of trades during a three minute settlement period from 2:27 p.m. to 2:30 p.m. New York time) for the contracts traded on the ICE Futures Exchange, but calculates or determines the value of all other USBO investments as of the earlier of the close of the NYSE Arca or 4:00 p.m. New York time. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 38%; padding-left: 12.2pt; text-indent: -12.2pt"><FONT STYLE="font-size: 10pt">Fund Expenses: </FONT></TD>
    <TD STYLE="width: 62%"><FONT STYLE="font-size: 10pt">USBO pays the General Partner a management fee of 0.75% of NAV on its average net assets. Brokerage fees for Treasuries, Futures Contracts, and Other Crude Oil-Related Investments were 0.071% of average net assets on an annualized basis and were paid to unaffiliated brokers. USBO also pays any licensing fees for the use of intellectual property. Registration fees paid to the SEC, FINRA, or other regulatory agency in connection with the initial offers and sales of the units and the legal, printing, accounting and other expenses associated with such registrations were paid by the General Partner, but the fees and expenses associated with subsequent SEC registrations of units are borne by USBO. USBO also is responsible for the fees and expenses, which may include directors and officers liability insurance, of the independent directors of the General Partner in connection with their activities with respect to USBO. These director fees and expenses may be shared with other funds managed by the General Partner. These fees and expenses, in total amounted to $540,586 for all funds for 2012, and USBO&rsquo;s portion of such fees and expenses was $9,844, although this amount may change in future years. The General Partner, and not USBO, is responsible for payment of the fees of USBO&rsquo;s Marketing Agent, Administrator and Custodian. USBO and/or the General Partner may be required to indemnify the Marketing Agent, Administrator or Custodian under certain circumstances. USBO also pays the fees and expenses associated with its tax accounting and reporting requirements with the exception of certain initial implementation services fees and base services fees which were paid by the General Partner. The General Partner, though under no obligation to do so, agreed to pay certain expenses, including those relating to audit expenses and tax accounting and reporting requirements normally borne by USBO to the extent that such expenses exceeded 0.15% (15 basis points) of USBO&rsquo;s NAV, on an annualized basis. The General Partner has no obligation to continue such payment into subsequent years. The total amount of expense waiver was $47,248 for the year ended December 31, 2012. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 38%; padding-left: 12.2pt; text-indent: -12.2pt"><FONT STYLE="font-size: 10pt">Termination Events: </FONT></TD>
    <TD STYLE="width: 62%"><FONT STYLE="font-size: 10pt">USBO shall continue in effect from the date of its formation in perpetuity, unless sooner terminated upon the occurrence of any one or more of the following events: the death, adjudication of incompetence, bankruptcy, dissolution, withdrawal, or removal of a General Partner who is the sole remaining General Partner, unless a majority in interest of limited partners within ninety (90)&nbsp;days after such event elects to continue the partnership and appoints a successor general partner or the affirmative vote of a majority in interest of the limited partners subject to certain conditions. Upon termination of the partnership, the affairs of the partnership shall be wound up and all of its debts and liabilities discharged or otherwise provided for in the order of priority as provided by law. The fair market value of the remaining assets of the partnership shall then be determined by the General Partner. Thereupon, the assets of the partnership shall be distributed pro rata to the partners in accordance with their units. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 38%; padding-left: 12.2pt; text-indent: -12.2pt"><FONT STYLE="font-size: 10pt">Withdrawal: </FONT></TD>
    <TD STYLE="width: 62%"><FONT STYLE="font-size: 10pt">As discussed in the LP Agreement, if the General Partner gives at least fifteen (15)&nbsp;days&rsquo; written notice to a limited partner, then the General Partner may for any reason, in its sole discretion, require any such limited partner to withdraw entirely from the partnership or to withdraw a portion of its partner capital account. If the General Partner does not give at least fifteen (15)&nbsp;days&rsquo; written notice to a limited partner, then it may only require withdrawal of all or any portion of the capital account of any limited partner in the following circumstances: (i)&nbsp;the unitholder made a misrepresentation to the General Partner in connection with its purchase of units; or (ii)&nbsp;the limited partner&rsquo;s ownership of units would result in the violation of any law or regulation applicable to the partnership or a partner. </FONT></TD></TR>
</TABLE>
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 38%; padding-left: 12.2pt; text-indent: -12.2pt"><FONT STYLE="font-size: 10pt">Authorized Purchasers: </FONT></TD>
    <TD STYLE="width: 62%"><FONT STYLE="font-size: 10pt">USBO has entered into agreements with several Authorized Purchasers. A current list of Authorized Purchasers is available from the Marketing Agent. Authorized Purchasers must be (1)&nbsp;registered broker-dealers or other securities market participants, such as banks and other financial institutions, that are not required to register as broker-dealers to engage in securities transactions, and (2)&nbsp;DTC Participants. To become an Authorized Purchaser, a person must enter into an Authorized Purchaser Agreement with the General Partner. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WHAT ARE THE RISK FACTORS INVOLVED WITH
AN INVESTMENT IN USBO? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>You should consider carefully the risks
described below before making an investment decision. You should also refer to the other information included in this prospectus,
as well as information found in our periodic reports, which include USBO&rsquo;s financial statements and the related notes, that
are incorporated by reference. See &ldquo;Incorporation by Reference of Certain Information.&rdquo; </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Risks Associated With Investing Directly
or Indirectly in Crude Oil </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Investing in Crude Oil Interests subjects USBO to the
risks of the crude oil industry and this could result in large fluctuations in the price of USBO&rsquo;s units. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO is subject to the risks and hazards
of the crude oil industry because it invests in Crude Oil Interests. The risks and hazards that are inherent in the crude oil industry
may cause the price of crude oil to widely fluctuate. If the changes in percentage terms of USBO&rsquo;s units accurately track
the changes in percentage terms of the Benchmark Futures Contract or the spot price of Brent crude oil, then the price of its units
may also fluctuate. The exploration and production of crude oil are uncertain processes with many risks. The cost of drilling,
completing and operating wells for crude oil is often uncertain, and a number of factors can delay or prevent drilling operations
or production of crude oil, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>unexpected drilling conditions;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>pressure or irregularities in formations;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>equipment failures or repairs;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>fires or other accidents;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>adverse weather conditions;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>pipeline ruptures, spills or other supply disruptions; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>shortages or delays in the availability of drilling rigs and the delivery of equipment.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Crude oil transmission, distribution, gathering, and processing
activities involve numerous risks that may affect the price of crude oil. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">There are a variety of hazards inherent
in crude oil transmission, distribution, gathering, and processing, such as leaks, explosions, pollution, release of toxic substances,
adverse weather conditions (such as hurricanes and flooding), pipeline failure, abnormal pressures, uncontrollable flows of crude
oil, scheduled and unscheduled maintenance, physical damage to the gathering or transportation system, and other hazards which
could affect the price of crude oil. To the extent these hazards limit the supply or delivery of crude oil, crude oil prices will
increase.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Changes in the political climate could have negative consequences
for crude oil prices. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Uprise in the Middle East, including civil
war in Syria and uprise in Egypt could put oil exports in jeopardy. As global markets continue to react to various crises and uprises,
such unrests in general could impact the production, supply and cost of crude oil.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Fluctuations in the reserve capacity of crude oil could
impact future prices. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In the past, a supply disruption in one
area of the world was softened by the ability of major oil-producing nations to increase output to make up the difference. At this
time, some of that spare reserve capacity has been absorbed by increased demand.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Daily changes in USBO&rsquo;s per unit NAV may not correlate
with daily changes in the price of the Benchmark Futures Contract. If this were to occur, investors may not be able to effectively
use USBO as a way to hedge against crude oil-related losses or as a way to indirectly invest in crude oil. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner endeavors to invest
USBO&rsquo;s assets as fully as possible in Futures Contracts and Other Crude Oil-Related Investments so that the daily changes
in percentage terms of the per unit NAV closely correlate with the daily changes in percentage terms in the price of the Benchmark
Futures Contract. However, daily changes in USBO&rsquo;s per unit NAV may not correlate with the daily changes in the price of
the Benchmark Futures Contract for several reasons as set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>USBO: (i)&nbsp;may not be able to buy/sell the exact amount of Futures Contract and Other Crude Oil-Related Investments to
have a perfect correlation with per unit NAV; (ii)&nbsp;may not always be able to buy and sell Futures Contracts or Other Crude
Oil-Related Investments at the market price; and (iii)&nbsp;is required to pay fees, including brokerage fees and the management
fee, which will have an effect on the correlation.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>Short-term supply and demand for crude oil may cause the changes in the market price of the Benchmark Futures Contract to vary
from the changes in USBO&rsquo;s per unit NAV if USBO has fully invested in Futures Contracts that do not reflect such supply and
demand and it is unable to replace such contracts with Futures Contracts that do reflect such supply and demand.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>USBO sells and buys only as many Futures Contracts and Other Crude Oil-Related Investments that it can to get the daily changes
in percentage terms of the per unit NAV as close as possible to the daily changes in percentage terms in the price of the Benchmark
Futures Contracts. The remainder of its assets are invested in Treasuries, cash and/or cash equivalents and are used to satisfy
initial margin and additional margin requirements, if any, and to otherwise support its investments in Crude Oil Interests. Investments
in Treasuries, cash and/or cash equivalents, both directly and as margin, provide rates of return that vary from changes in the
price of the Benchmark Futures Contract.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>Because USBO incurs certain expenses in connection with its investment activities, and holds most of its assets in cash and/or
more liquid short-term securities for margin and other liquidity purposes and for redemptions that may be necessary on an ongoing
basis, the General Partner is generally not able to fully invest USBO&rsquo;s assets in Futures Contracts or Other Crude Oil-Related
Investments and there cannot be perfect correlation between changes in USBO&rsquo;s per unit NAV and changes in the price of the
Benchmark Futures Contract.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>As USBO grows, there may be more or less correlation. For example, if USBO only has enough money to buy three Benchmark Futures
Contracts and it needs four contracts to track the price of Brent crude oil then the correlation will be lower, but if buys 20,000
Benchmark Futures Contracts and it needs to buy 20,001 contracts then the correlation will be higher. At certain asset levels,
USBO may be limited in its ability to buy or purchase the Benchmark Futures Contract or other Futures Contracts due to accountability
levels imposed by the relevant exchanges. To the extent that USBO invests in these other Futures Contracts or Other Crude Oil-Related
Investments, the correlation with the Benchmark Futures Contract may be lower. If USBO is required to invest in other Futures Contracts
and Other Crude Oil-Related Investments that are less correlated with the Benchmark Futures Contract, USBO would likely invest
in over-the-counter contracts to increase the level of correlation of USBO&rsquo;s assets. Over-the-counter contracts entail certain
risks described below under &ldquo;Over-the-Counter Contract Risk.&rdquo;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>USBO may not be able to buy the exact number of Futures Contracts and Other Crude Oil-Related Investments to have a perfect
correlation with the Benchmark Futures Contract if the purchase price of the Futures Contracts required to be fully invested in
such contracts is higher than the proceeds received for the sale of a Creation Basket on the day the basket was sold. In such case,
USBO could not invest the entire proceeds from the purchase of the Creation Basket in such futures contracts (for example, assume
USBO receives $2,500,000 for the sale of a Creation Basket and assume that the price of a Futures Contract for crude oil is $105,000,
then USBO could only invest in 23 Futures Contracts with an aggregate value of $2,415,000), USBO would be required to invest a
percentage of the proceeds in cash, Treasuries or other liquid securities to be deposited as margin with the futures commission
merchant through which the contracts were purchased. The remainder of the purchase price for the Creation Basket would remain invested
in Treasuries, cash and/or cash equivalents or other liquid securities as determined by the General Partner from time to time based
on factors such as potential calls for margin or anticipated redemptions. If the trading market for Futures Contracts is suspended
or closed, USBO may not be able to purchase these investments at the last reported price.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">If daily changes in USBO&rsquo;s per unit
NAV do not correlate with daily changes in the price of the Benchmark Futures Contract, then investing in USBO may not be an effective
way to hedge against oil-related losses or indirectly invest in oil.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The Benchmark Futures Contract may not correlate with
the spot price of Brent crude oil and this could cause changes in the price of the units to substantially vary from the changes
in the spot price of Brent crude oil. If this were to occur, then investors may not be able to effectively use USBO as a way to
hedge against crude oil-related losses or as a way to indirectly invest in crude oil. In addition, the price relationship between
the near month contract and the next month contract that compose the Benchmark Futures Contract will vary and may impact both the
total return over time of USBO&rsquo;s per unit NAV, as well as the degree to which its total return tracks other crude oil price
indices&rsquo; total returns. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">When using the Benchmark Futures Contract
as a strategy to track the spot price of Brent crude oil, at best the correlation between changes in prices of such Crude Oil Interests
and the spot price of Brent crude oil can be only approximate. The degree of imperfection of correlation depends upon circumstances
such as variations in the speculative Brent crude oil market, supply of and demand for such Crude Oil Interests and technical influences
in futures trading. If there is a weak correlation between the Crude Oil Interests and the spot price of Brent crude oil, then
even in situations where there is also tracking among the price of units, the per unit NAV of such units and Crude Oil Interests,
the price of units may not accurately track the spot price of Brent crude oil and investors may not be able to effectively use
USBO as a way to hedge the risk of losses in their oil-related transactions or as a way to indirectly invest in crude oil.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Backwardation and contango may increase USBO&rsquo;s tracking
error and/or negatively impact total return. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The design of USBO&rsquo;s Benchmark Futures
Contract is such that every month it begins by using the near month contract to expire until the near month contract is within
two weeks of expiration, when, over a four day period, it transitions to the next month contract to expire as its benchmark contract
and keeps that contract as its benchmark until it becomes the near month contract and close to expiration. In the event of a crude
oil futures market where near month contracts trade at a higher price than next month to expire contracts, a situation described
as &ldquo;backwardation&rdquo; in the futures market, then absent the impact of the overall movement in crude oil prices the value
of the benchmark contract would tend to rise as it approaches expiration. As a result, the total return of the Benchmark Futures
Contract would tend to track higher. Conversely, in the event of a crude oil futures market where near month contracts trade at
a lower price than next month contracts, a situation described as &ldquo;contango&rdquo; in the futures market, then absent the
impact of the overall movement in crude oil prices the value of the Benchmark Futures Contract would tend to decline as it approaches
expiration. As a result the total return of the Benchmark Futures Contract would tend to track lower. When compared to total return
of other price indices, such as the spot price of crude oil, the impact of backwardation and contango may lead the total return
of USBO&rsquo;s per unit NAV to vary significantly. In the event of a prolonged period of contango, and absent the impact of rising
or falling oil prices, this could have a significant negative impact on USBO&rsquo;s per unit NAV and total return.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>USBO may experience a loss if it is required to sell Treasuries
at a price lower than the price at which they were acquired. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The value of Treasuries generally moves
inversely with movements in interest rates. If USBO is required to sell Treasuries at a price lower than the price at which they
were acquired, USBO will experience a loss. This loss may adversely impact the price of the units and may decrease the correlation
among the price of units, the per unit NAV of units, the price of the Benchmark Futures Contract and Other Crude Oil-Related Investments,
and the spot price of Brent crude oil.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Certain of USBO&rsquo;s investments could be illiquid
which could cause large losses to investors at any time or from time to time. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO may not always be able to liquidate
its positions in its investments at the desired price. It is difficult to execute a trade at a specific price when there is a relatively
small volume of buy and sell orders in a market. A market disruption, such as a foreign government taking political actions that
disrupt the market in its currency, its crude oil production or exports, or in another major export, can also make it difficult
to liquidate a position. Alternatively, limits imposed by futures exchanges or other regulatory organizations, such as accountability
levels, position limits and daily price fluctuation limits, may contribute to a lack of liquidity with respect to some commodity
interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Unexpected market illiquidity may cause
major losses to investors at any time or from time to time. In addition, USBO has not and does not intend at this time to establish
a credit facility, which would provide an additional source of liquidity and instead relies only on the Treasuries, cash and/or
cash equivalents that it holds. The anticipated large value of the positions in Futures Contracts that the General Partner will
acquire or enter into for USBO increases the risk of illiquidity. The Other Crude Oil-Related Investments that USBO invests in,
such as negotiated over-the-counter contracts, may have a greater likelihood of being illiquid since they are contracts between
two parties that take into account not only market risk, but also the relative credit, tax, and settlement risks under such contracts.
Such contracts also have limited transferability that results from such risks and from the contract&rsquo;s express limitations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Because both Futures Contracts and Other
Crude Oil-Related Investments may be illiquid, USBO&rsquo;s Crude Oil Interests may be more difficult to liquidate at favorable
prices in periods of illiquid markets and losses may be incurred during the period in which positions are being liquidated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If the nature of hedgers and speculators in futures markets
has shifted such that crude oil purchasers are the predominant hedgers in the market, USBO might have to reinvest at higher futures
prices or choose Other Crude Oil-Related Investments. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The changing nature of the hedgers and
speculators in the crude oil market influences whether futures prices are above or below the expected future spot price. In order
to induce speculators to take the corresponding long side of the same futures contract, crude oil producers must generally be willing
to sell futures contracts at prices that are below expected future spot prices. Conversely, if the predominant hedgers in the futures
market are the purchasers of the crude oil who purchase futures contracts to hedge against a rise in prices, then speculators will
only take the short side of the futures contract if the futures price is greater than the expected future spot price of crude oil.
This can have significant implications for USBO when it is time to reinvest the proceeds from a maturing Futures Contract into
a new Futures Contract.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>While USBO does not intend to take physical delivery of
crude oil under its Futures Contracts, physical delivery under such contracts impacts the value of the contracts. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">While it is not the current intention of
USBO to take physical delivery of crude oil under any of its Futures Contracts, futures contracts are not required to be cash-settled
and it is possible to take delivery under some of these contracts. Storage costs associated with purchasing crude oil could result
in costs and other liabilities that could impact the value of Futures Contracts or Other Crude Oil-Related Investments. Storage
costs include the time value of money invested in crude oil as a physical commodity plus the actual costs of storing the crude
oil less any benefits from ownership of crude oil that are not obtained by the holder of a futures contract. In general, Futures
Contracts have a one-month delay for contract delivery and the back month (the back month is any future delivery month other than
the spot month) includes storage costs. To the extent that these storage costs change for crude oil while USBO holds Futures Contracts
or Other Crude Oil-Related Investments, the value of the Futures Contracts or Other Crude Oil-Related Investments, and therefore
USBO&rsquo;s per unit NAV, may change as well.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Regulation of the commodity interests and energy markets
is extensive and constantly changing; future regulatory developments are impossible to predict but may significantly and adversely
affect USBO. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The futures markets are subject to comprehensive
statutes, regulations, and margin requirements. In addition, the CFTC and the exchanges are authorized to take extraordinary actions
in the event of a market emergency, including, for example, the retroactive implementation of speculative position limits or higher
margin requirements, the establishment of daily price limits and the suspension of trading.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The regulation of commodity interest transactions
in the United States is a rapidly changing area of law and is subject to ongoing modification by governmental and judicial action.
Considerable regulatory attention has been focused on non-traditional investment pools that are publicly distributed in the United
States. In addition, various national governments outside of the United States have expressed concern regarding the disruptive
effects of speculative trading in the energy markets and the need to regulate the derivatives markets in general. The effect of
any future regulatory change on USBO is impossible to predict, but it could be substantial and adverse.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Investing in USBO for purposes of hedging may be subject
to several risks including the possibility of losing the benefit of favorable market movement.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Participants in the crude oil or in other industries may use
USBO as a vehicle to hedge the risk of losses in their crude oil-related transactions. There are several risks in connection with
using USBO as a hedging device. While hedging can provide protection against an adverse movement in market prices, it can also
preclude a hedger&rsquo;s opportunity to benefit from a favorable market movement. In a hedging transaction, the hedger may be
concerned that the hedged item will increase in price, but must recognize the risk that the price may instead decline and if this
happens he will have lost his opportunity to profit from the change in price because the hedging transaction will result in a loss
rather than a gain. Thus, the hedger foregoes the opportunity to profit from favorable price movements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>An investment in USBO may provide little or no diversification
benefits. Thus, in a declining market, USBO may have no gains to offset losses from other investments, and an investor may suffer
losses on an investment in USBO while incurring losses with respect to other asset classes. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Historically, Futures Contracts and Other
Crude Oil-Related Investments have generally been non-correlated to the performance of other asset classes such as stocks and bonds.
Non-correlation means that there is a low statistically valid relationship between the performance of futures and other commodity
interest transactions, on the one hand, and stocks or bonds, on the other hand. However, there can be no assurance that such non-correlation
will continue during future periods. If, contrary to historic patterns, USBO&rsquo;s performance were to move in the same general
direction as the financial markets, investors will obtain little or no diversification benefits from an investment in the units.
In such a case, USBO may have no gains to offset losses from other investments, and investors may suffer losses on their investment
in USBO at the same time they incur losses with respect to other investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Variables such as drought, floods, weather,
embargoes, tariffs and other political events may have a larger impact on crude oil prices and crude oil-linked instruments, including
Futures Contracts and Other Crude Oil-Related Investments, than on traditional securities. These additional variables may create
additional investment risks that subject USBO&rsquo;s investments to greater volatility than investments in traditional securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Non-correlation should not be confused
with negative correlation, where the performance of two asset classes would be opposite of each other. There is no historic evidence
that the spot price of crude oil and prices of other financial assets, such as stocks and bonds, are negatively correlated. In
the absence of negative correlation, USBO cannot be expected to be automatically profitable during unfavorable periods for the
stock market, or vice versa.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>USBO&rsquo;s Operating Risks </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>USBO is not a registered investment company so unitholders
do not have the protections of the 1940 Act. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO is not an investment company subject
to the 1940 Act. Accordingly, investors do not have the protections afforded by that statute which, for example, requires investment
companies to have a majority of disinterested directors and regulates the relationship between the investment company and its investment
manager.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The General Partner is leanly staffed and relies heavily
on key personnel to manage trading activities. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In managing and directing the day-to-day
activities and affairs of USBO, the General Partner relies heavily on Messrs. Howard Mah and John Hyland. If Messrs. Mah or Hyland
were to leave or be unable to carry out their present responsibilities, it may have an adverse effect on the management of USBO.
Furthermore, Messrs. Mah and Hyland are currently involved in the management of the Related Public Funds. The General Partner has
also filed registration statements to register units of United States Sugar Fund (&ldquo;USSF&rdquo;), United States Natural Gas
Double Inverse Fund (&ldquo;UNGD&rdquo;), United States Gasoil Fund (&ldquo;USGO&rdquo;) and UAC, each a series of the United States
Commodity Funds Trust I, and US Golden Currency Fund (&ldquo;HARD&rdquo;), a series of the United States Currency Funds Trust.
Mr. Mah is also employed by Ameristock Corporation, a registered investment adviser that until January 11, 2013 managed a public
mutual fund. On January 11, 2013, Ameristock Mutual Fund, Inc. merged with and into the Drexel Hamilton Centre American Equity
Fund, a series of the Drexel Hamilton Mutual Funds. Drexel Hamilton Mutual Funds and its advisor, Drexel Hamilton Investment Partners,
are not affiliated with Ameristock Corporation, the Ameristock Mutual Fund Inc., or the General Partner. After the consummation
of the reorganization and liquidation, the Ameristock Corporation maintained its non-advisory assets. It is estimated that Mr.
Mah will spend approximately 98% of his time on USBO and Related Public Fund matters. Mr. Hyland will spend approximately 100%
of his time on USBO and Related Public Fund matters. To the extent that the General Partner establishes additional funds, even
greater demands will be placed on Messrs. Mah and Hyland, as well as the other officers of the General Partner and its Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Accountability levels, position limits, and daily price
fluctuation limits set by the exchanges have the potential to cause a tracking error, which could cause the price of units to substantially
vary from the price of the Benchmark Futures Contract and prevent investors from being able to effectively use USBO as a way to
hedge against crude oil-related losses or as a way to indirectly invest in crude oil. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Designated contract markets such as the NYMEX and ICE Futures
have established accountability levels and position limits on the maximum net long or net short futures contracts in commodity
interests that any person or group of persons under common trading control (other than as a hedge, which an investment by USBO
is not) may hold, own or control. In addition to accountability levels and position limits, the NYMEX and ICE Futures also set
daily price fluctuation limits on futures contracts. The daily price fluctuation limit establishes the maximum amount that the
price of a futures contract may vary either up or down from the previous day&rsquo;s settlement price. Once the daily price fluctuation
limit has been reached in a particular futures contract, no trades may be made at a price beyond that limit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In late 2011, the CFTC adopted rules that impose new position
limits on Referenced Contracts involving 28 energy, metals and agricultural commodities (the &ldquo;Position Limit Rules&rdquo;).
The Position Limit Rules were scheduled to become effective on October 12, 2012. However, on September 28, 2012, the United States
District Court for the District of Columbia vacated these regulations on the basis of ambiguities in the provisions of the CEA
(as modified by the Dodd-Frank Act) upon which the regulations were based. In its September 28th decision, the court remanded the
Position Limit Rules to the CFTC with instructions to use its expertise and experience to resolve the ambiguities in the statute.
On November 15, 2012, the CFTC indicated that it will move forward with an appeal of the District Court&rsquo;s decision to vacate
the Position Limit Rules. At this time, it is not possible to predict how the CFTC&rsquo;s appeal could affect USBO, but it may
be substantial and adverse. Furthermore, until such time as the appeal is resolved or, if applicable revisions to the Position
Limit Rules are proposed and adopted, the regulatory architecture in effect prior to the enactment of the Position Limit Rules
will govern transactions in commodities and related derivatives. Under that system, the CFTC enforces federal limits on speculation
in agricultural products (e.g., corn, wheat and soy), while futures exchanges enforce accountability levels for agricultural and
certain energy products (e.g., oil and natural gas). As a result, USBO may be limited with respect to the size of its investments
in any commodities subject to these limits. Finally, subject to certain narrow exceptions, the vacated Position Limit Rules would
have required the aggregation, for purposes of the position limits, of all positions in the 28 Referenced Contracts held by a single
entity and its affiliates, regardless of whether such position existed on U.S. futures exchanges, non-U.S. futures exchanges, in
cleared swaps or in over-the-counter swaps. The CFTC is presently considering new aggregation rules, under a rulemaking proposal
that is distinct from the Position Limit Rules. At this time, it is unclear how any modified aggregation rules may affect USBO,
but it may be substantial and adverse. By way of example, the aggregation rules in combination with any potential revised Position
Limit Rules may negatively impact the ability of USBO to meet its investment objectives through limits that may inhibit the General
Partner&rsquo;s ability to sell additional Creation Baskets of USBO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">All of these limits may potentially cause a tracking error between
the price of the units and the price of the Benchmark Futures Contract. This may in turn prevent investors from being able to effectively
use USBO as a way to hedge against crude oil-related losses or as a way to indirectly invest in crude oil.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">USBO has not limited the size of its offering and is committed
to utilizing substantially all of its proceeds to purchase Futures Contracts and Other Crude Oil-Related Investments. If USBO is
required to limit or reduce the size of its positions in Brent crude oil contracts on the NYMEX or ICE Futures, it may then, if
permitted under applicable regulatory requirements, purchase Futures Contracts on other exchanges that trade listed crude oil futures.
In addition, if USBO exceeds accountability levels on either the NYMEX or ICE Futures and is required by such exchanges to reduce
its holdings, such reduction could potentially cause a tracking error between the price of the units and the price of the Benchmark
Futures Contract.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>To the extent that the General Partner uses spreads and
straddles as part of its trading strategy, there is the risk that the per unit NAV may not closely track the changes in the Benchmark
Futures Contract. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">If the General Partner were to utilize
a spread or straddle position and the spread performed differently than expected, the results could impact USBO&rsquo;s tracking
error. This could affect USBO&rsquo;s investment objective of having its per unit NAV closely track the changes in the Benchmark
Futures Contract. Additionally, a loss on a spread position would negatively impact USBO&rsquo;s absolute return.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>USBO and the General Partner may have conflicts of interest,
which may permit them to favor their own interests to the detriment of unitholders. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO and the General Partner may have inherent
conflicts to the extent the General Partner attempts to maintain USBO&rsquo;s asset size in order to preserve its fee income and
this may not always be consistent with USBO&rsquo;s objective of having the value of its units&rsquo; per unit NAV track the changes
in the Benchmark Futures Contract.&nbsp;The General Partner&rsquo;s officers, directors and employees do not devote their time
exclusively to USBO.&nbsp; These persons are directors, officers or employees of other entities that may compete with USBO for
their services.&nbsp;They could have a conflict between their responsibilities to USBO and to those other entities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In addition, the General Partner&rsquo;s
principals, officers, directors or employees may trade futures and related contracts for their own account.&nbsp;A conflict of
interest may exist if their trades are in the same markets and at the same time as USBO trades using the clearing broker to be
used by USBO. &nbsp;A potential conflict also may occur if the General Partner&rsquo;s principals, officers, directors or employees
trade their accounts more aggressively or take positions in their accounts which are opposite, or ahead of, the positions taken
by USBO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner has sole current authority
to manage the investments and operations of USBO, and this may allow it to act in a way that furthers its own interests which may
create a conflict with the best interests of investors. Limited partners have limited voting control, which will limit the ability
to influence matters such as amendment of the LP Agreement, change in USBO&rsquo;s basic investment policy, dissolution of this
fund, or the sale or distribution of USBO&rsquo;s assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner serves as the general
partner to each of USBO, USOF, USNG, US12OF, UGA, USDHO, USSO and US12NG and the sponsor for USCI, CPER, USAG and USMI and will
serve as the sponsor for USSF, UNGD, USGO, UAC and HARD if such funds offer their securities to the public or begin operations.&nbsp;The
General Partner may have a conflict to the extent that its trading decisions for USBO may be influenced by the effect they would
have on the other funds it manages.&nbsp; These trading decisions may be influenced since the General Partner also serves as the
general partner or sponsor for all of the funds and is required to meet all of the funds&rsquo; investment objectives as well as
USBO&rsquo;s.&nbsp;If the General Partner believes that a trading decision it made on behalf of USBO might (i)&nbsp;impede its
other funds from reaching their investment objectives, or (ii)&nbsp;improve the likelihood of meeting its other funds&rsquo; objectives,
then the General Partner may choose to change its trading decision for USBO, which could either impede or improve the opportunity
for USBO to meet its investment objective.&nbsp;In addition, the General Partner is required to indemnify the officers and directors
of its other funds if the need for indemnification arises.&nbsp;This potential indemnification will cause the General Partner&rsquo;s
assets to decrease.&nbsp; If the General Partner&rsquo;s other sources of income are not sufficient to compensate for the indemnification,
then the General Partner may terminate and investors could lose their investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Unitholders may only vote on the removal of the General
Partner and limited partners have only limited voting rights. Unitholders and limited partners will not participate in the management
of USBO and do not control the General Partner so they will not have influence over basic matters that affect USBO. In addition,
USBO could terminate at any time and cause the liquidation and potential loss of an investor&rsquo;s investment and could upset
the overall maturity and timing of an investor&rsquo;s investment portfolio. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Limited partners will have limited voting
rights with respect to USBO&rsquo;s affairs. Unitholders must apply to become limited partners, and unitholders that have not applied
to become limited partners have no voting rights, other than to remove the General Partner as the general partner of USBO. Even
then, unitholders may remove the General Partner only if 66 2/3% of the unitholders elect to do so. Unitholders and limited partners
will not be permitted to participate in the management or control of USBO or the conduct of its business. Unitholders and limited
partners must therefore rely upon the duties and judgment of the General Partner to manage USBO&rsquo;s affairs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO may terminate at any time, regardless
of whether USBO has incurred losses, subject to the terms of the LP Agreement. In particular, unforeseen circumstances, including
the death, adjudication of incompetence, bankruptcy, dissolution, or removal of the General Partner as the general partner of USBO
could cause USBO to terminate unless a majority interest of the limited partners within 90 days of the event elects to continue
the partnership and appoints a successor general partner, or the affirmative vote of a majority in interest of the limited partners
subject to certain conditions. However, no level of losses will require the General Partner to terminate USBO. USBO&rsquo;s termination
would cause the liquidation and potential loss of an investor&rsquo;s investment. Termination could also negatively affect the
overall maturity and timing of an investor&rsquo;s investment portfolio.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The General Partner may manage a large amount of assets
and this could affect USBO&rsquo;s ability to trade profitably. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Increases in assets under management may
affect trading decisions. In general, the General Partner does not intend to limit the amount of assets of USBO that it may manage.
The more assets the General Partner manages, the more difficult it may be for it to trade profitably because of the difficulty
of trading larger positions without adversely affecting prices and performance and of managing risk associated with larger positions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Limited partners may have limited liability in certain
circumstances, including potentially having liability for the return of wrongful distributions. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Under Delaware law, a limited partner might
be held liable for USBO&rsquo;s obligations as if it were a general partner if the limited partner participates in the control
of the partnership&rsquo;s business and the persons who transact business with the partnership think the limited partner is the
general partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">A limited partner will not be liable for
assessments in addition to its initial capital investment in any of USBO&rsquo;s capital securities representing units. However,
a limited partner may be required to repay to USBO any amounts wrongfully returned or distributed to it under some circumstances.
Under Delaware law, USBO may not make a distribution to limited partners if the distribution causes USBO&rsquo;s liabilities (other
than liabilities to partners on account of their partnership interests and nonrecourse liabilities) to exceed the fair value of
USBO&rsquo;s assets. Delaware law provides that a limited partner who receives such a distribution and knew at the time of the
distribution that the distribution violated the law will be liable to the limited partnership for the amount of the distribution
for three years from the date of the distribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>With adequate notice, a limited partner may be required
to withdraw from the partnership for any reason. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">If the General Partner gives at least fifteen
(15)&nbsp;days&rsquo; written notice to a limited partner, then the General Partner may for any reason, in its sole discretion,
require any such limited partner to withdraw entirely from the partnership or to withdraw a portion of its partner capital account.
The General Partner may require withdrawal even in situations where the limited partner has complied completely with the provisions
of the LP Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>USBO does not expect to make cash distributions. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO has not previously made any cash distributions
and intends to re-invest any realized gains in additional Crude Oil Interests rather than distributing cash to limited partners.
Therefore, unlike mutual funds, commodity pools or other investment pools that actively manage their investments in an attempt
to realize income and gains from their investing activities and distribute such income and gains to their investors, USBO generally
does not expect to distribute cash to limited partners. An investor should not invest in USBO if it will need cash distributions
from USBO to pay taxes on its share of income and gains of USBO, if any, or for any other reason. Although USBO does not intend
to make cash distributions, the income earned from its investments held directly or posted as margin may reach levels that merit
distribution, <I>e.g.</I>, at levels where such income is not necessary to support its underlying investments in Crude Oil Interests
and investors adversely react to being taxed on such income without receiving distributions that could be used to pay such tax.
If this income becomes significant then cash distributions may be made.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>There is a risk that USBO will not earn trading gains
sufficient to compensate for the fees and expenses that it must pay and as such USBO may not earn any profit. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO pays brokerage charges of approximately
0.06% of average total net assets based on futures commission merchant fees of $3.50 per buy or sell, management fees of 0.75%
of NAV on its average daily net assets, and over-the-counter spreads and extraordinary expenses (<I>e.g., </I>subsequent offering
expenses, other expenses not in the ordinary course of business, including the indemnification of any person against liabilities
and obligations to the extent permitted by law and required under the LP Agreement and under agreements entered into by the General
Partner on USBO&rsquo;s behalf and the bringing and defending of actions at law or in equity and otherwise engaging in the conduct
of litigation and the incurring of legal expenses and the settlement of claims and litigation) that cannot be quantified.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">These fees and expenses must be paid in
all cases regardless of whether USBO&rsquo;s activities are profitable. Accordingly, USBO must earn trading gains sufficient to
compensate for these fees and expenses before it can earn any profit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If offerings of the units do not raise sufficient funds
to pay USBO&rsquo;s future expenses and no other source of funding of expenses is found, USBO may be forced to terminate and investors
may lose all or part of their investment. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Prior to the offering of units that commenced
on June&nbsp;2, 2010, all of USBO&rsquo;s expenses were funded by the General Partner and its affiliates. These payments by the
General Partner and its affiliates were designed to allow USBO the ability to commence the public offering of its units. USBO now
directly pays certain of these fees and expenses. The General Partner will continue to pay other fees and expenses, as set forth
in the LP Agreement. If the General Partner and USBO are unable to raise sufficient funds to cover their expenses or locate any
other source of funding, USBO may be forced to terminate and investors may lose all or part of their investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>USBO may incur higher fees and expenses upon renewing
existing or entering into new contractual relationships. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The clearing arrangements between the clearing
brokers and USBO generally are terminable by the clearing brokers once the clearing broker has given USBO notice. Upon termination,
the General Partner may be required to renegotiate or make other arrangements for obtaining similar services if USBO intends to
continue trading in Futures Contracts or Other Crude Oil-Related Investments at its present level of capacity. The services of
any clearing broker may not be available, or even if available, these services may not be available on the terms as favorable as
those of the expired or terminated clearing arrangements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>USBO may miss certain trading opportunities because it
will not receive the benefit of the expertise of independent trading advisors. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner does not employ trading
advisors for USBO; however, it reserves the right to employ them in the future. The only advisor to USBO is the General Partner.
A lack of independent trading advisors may be disadvantageous to USBO because it will not receive the benefit of a trading advisor&rsquo;s
expertise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>An unanticipated number of redemption requests during
a short period of time could have an adverse effect on the per unit NAV of USBO. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">If a substantial number of requests for
redemption of Redemption Baskets are received by USBO during a relatively short period of time, USBO may not be able to satisfy
the requests from USBO&rsquo;s assets not committed to trading. As a consequence, it could be necessary to liquidate positions
in USBO&rsquo;s trading positions before the time that the trading strategies would otherwise dictate liquidation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The financial markets are currently in a period of disruption
and USBO does not expect these conditions to improve in the near future. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Since 2008, the financial markets have
experienced very difficult conditions and volatility as well as significant adverse trends. The conditions in these markets have
resulted in a decrease in availability of corporate credit and liquidity and have led indirectly to the insolvency, closure or
acquisition of a number of major financial institutions and have contributed to further consolidation within the financial services
industry. In addition, the Administration and Congress have periodically been reaching impasses in passing a fiscal budget, which
could create long-term concerns regarding the credit of the United States and interest earned, as well as the United States Government&rsquo;s
ability to pay its obligations to holders of Treasuries. If low interest rates on Treasuries continues or if USBO is not able to
redeem its investments in Treasuries prior to maturity and the U.S. Government cannot pay its obligations, USBO would be negatively
impacted. In addition, USBO might also be negatively impacted by its use of money market mutual funds to the extent those funds
might themselves be using Treasuries. Although the financial markets saw signs of recovery beginning in late 2010 and 2011, economic
growth in 2012 was slow and the financial markets are still fragile. A poor financial recovery could adversely affect the financial
condition and results of operations of USOF&rsquo;s service providers and Authorized Purchasers, which would impact the ability
of the General Partner to achieve USBO&rsquo;s investment objective.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The failure or bankruptcy of a clearing broker or USBO&rsquo;s
Custodian could result in a substantial loss of USBO&rsquo;s assets and could impair USBO in its ability to execute trades. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Under CFTC regulations, a clearing broker
maintains customers&rsquo; assets in a bulk segregated account. If a clearing broker fails to do so, or even if the customers&rsquo;
funds are segregated by the clearing broker but the clearing broker is unable to satisfy a substantial deficit in a customer account,
the clearing broker&rsquo;s other customers may be subject to risk of a substantial loss of their funds in the event of that clearing
broker&rsquo;s bankruptcy. In that event, the clearing broker&rsquo;s customers, such as USBO, are entitled to recover, even in
respect of property specifically traceable to them, only a proportional share of all property available for distribution to all
of that clearing broker&rsquo;s customers. The bankruptcy of a clearing broker could result in the complete loss of USBO&rsquo;s
assets posted with the clearing broker; though the vast majority of USBO&rsquo;s assets are held in Treasuries, cash and/or cash
equivalents with the Custodian and would not be impacted by the bankruptcy of a clearing broker. USBO also may be subject to the
risk of the failure of, or delay in performance by, any exchanges and markets and their clearing organizations, if any, on which
commodity interest contracts are traded.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In addition, to the extent USBO&rsquo;s
clearing broker is required to post USBO&rsquo;s assets as margin to a clearinghouse, the margin will be maintained in an omnibus
account containing the margin of all of the clearing broker&rsquo;s customers. If USBO&rsquo;s clearing broker defaults to a clearinghouse
because of a default by one of the clearing broker&rsquo;s other customers or otherwise, then the clearinghouse can look to all
of the margin in the omnibus account, including margin posted by USBO and any other non-defaulting customers of the clearing broker
to satisfy the obligations of the clearing broker.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">From time to time, the clearing brokers
may be subject to legal or regulatory proceedings in the ordinary course of their business. A clearing broker&rsquo;s involvement
in costly or time-consuming legal proceedings may divert financial resources or personnel away from the clearing broker&rsquo;s
trading operations, which could impair the clearing broker&rsquo;s ability to successfully execute and clear USBO&rsquo;s trades.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In addition, the majority of USBO&rsquo;s
assets are held in Treasuries, cash and/or cash equivalents with the Custodian. The insolvency of the Custodian could result in
a complete loss of USBO&rsquo;s assets held by that Custodian, which, at any given time, would likely comprise a substantial portion
of USBO&rsquo;s total assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Third parties may infringe upon or otherwise violate intellectual
property rights or assert that the General Partner has infringed or otherwise violated their intellectual property rights, which
may result in significant costs and diverted attention. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Third parties may utilize USBO&rsquo;s
intellectual property or technology, including the use of its business methods, trademarks and trading program software, without
permission. The General Partner has a patent for USBO&rsquo;s business method and it has registered its trademarks. USBO does not
currently have any proprietary software. However, if it obtains proprietary software in the future, then any unauthorized use of
USBO&rsquo;s proprietary software and other technology could also adversely affect its competitive advantage. USBO may not have
adequate resources to implement procedures for monitoring unauthorized uses of its patents, trademarks, proprietary software and
other technology. Also, third parties may independently develop business methods, trademarks or proprietary software and other
technology similar to that of the General Partner or claim that the General Partner has violated their intellectual property rights,
including their copyrights, trademark rights, trade names, trade secrets and patent rights. As a result, the General Partner may
have to litigate in the future to protect its trade secrets, determine the validity and scope of other parties&rsquo; proprietary
rights, defend itself against claims that it has infringed or otherwise violated other parties&rsquo; rights, or defend itself
against claims that its rights are invalid. Any litigation of this type, even if the General Partner is successful and regardless
of the merits, may result in significant costs, divert its resources from USBO, or require it to change its proprietary software
and other technology or enter into royalty or licensing agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The success of USBO depends on the ability of the General
Partner to accurately implement trading systems, and any failure to do so could subject USBO to losses on such transactions. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner uses mathematical formulas
built into a generally available spreadsheet program to decide whether it should buy or sell Crude Oil Interests each day. Specifically,
The General Partner uses the spreadsheet to make mathematical calculations and to monitor positions in Crude Oil Interests and
Treasuries and correlations to the Benchmark Futures Contract. The General Partner must accurately process the spreadsheets&rsquo;
outputs and execute the transactions called for by the formulas. In addition, USBO relies on the General Partner to properly operate
and maintain its computer and communications systems.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Extraordinary transaction volume, hardware
or software failure, power or telecommunications failure, a natural disaster or other catastrophe could cause the computer systems
to operate at an unacceptably slow speed or even fail. Any significant degradation or failure of the systems that the General Partner
uses to gather and analyze information, enter orders, process data, monitor risk levels and otherwise engage in trading activities
may result in substantial losses on transactions, liability to other parties, lost profit opportunities, damages to the General
Partner&rsquo;s and USBO&rsquo;s reputations, increased operational expenses and diversion of technical resources. Any failure,
inaccuracy or delay in implementing any of the formulas or systems, including implementing upgrades and compatibility with the
computer systems of third parties, and executing USBO&rsquo;s transactions could impair its ability to achieve USBO&rsquo;s investment
objective. It could also result in decisions to undertake transactions based on inaccurate or incomplete information. This could
cause substantial losses on transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The occurrence of a terrorist attack, or the outbreak,
continuation or expansion of war or other hostilities could disrupt USBO&rsquo;s trading activity and materially affect USBO&rsquo;s
profitability. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The operations of USBO, the exchanges,
brokers and counterparties with which USBO does business, and the markets in which USBO does business could be severely disrupted
in the event of a major terrorist attack or the outbreak, continuation or expansion of war or other hostilities. Global anti-terrorism
initiatives, political unrest in the Middle East and Southeast Asia, as well as political hostility towards the United States,
continue to fuel this concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risk of Leverage and Volatility </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If the General Partner permits USBO to become leveraged,
investors could lose all or substantially all of their investment if USBO&rsquo;s trading positions suddenly turn unprofitable.
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Commodity pools&rsquo; trading positions
in futures contracts or other commodity interests are typically required to be secured by the deposit of margin funds that represent
only a small percentage of a futures contract&rsquo;s (or other commodity interests&rsquo;) entire market value. This feature permits
commodity pools to &ldquo;leverage&rdquo; their assets by purchasing or selling futures contracts (or other commodity interests)
with an aggregate value in excess of the commodity pool&rsquo;s assets. While this leverage can increase the pool&rsquo;s profits,
relatively small adverse movements in the price of the pool&rsquo;s futures contracts can cause significant losses to the pool.
While the General Partner has not and does not currently intend to leverage USBO&rsquo;s assets, it is not prohibited from doing
so under the LP Agreement or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The price of crude oil is volatile which could cause large
fluctuations in the price of units. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Movements in the price of crude oil may
be the result of factors outside of the General Partner&rsquo;s control and may not be anticipated by the General Partner. Among
the factors that can cause volatility in the price of crude oil are:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.95pt"></TD><TD STYLE="width: 18pt">&bull;</TD><TD>worldwide or regional demand for energy, which is affected by economic conditions;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>the domestic and foreign supply and inventories of oil and gas;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>weather conditions, including abnormally mild winter or summer weather, and abnormally harsh winter or summer weather;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>availability and adequacy of pipeline and other transportation facilities;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>availability of storage facilities;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>domestic and foreign governmental regulations and taxes;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>political conditions in gas or oil producing regions;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>technological advances relating to energy usage or relating to technology for exploration, production, refining and petrochemical
manufacturing;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>the ability of members of the Organization of the Petroleum Exporting Countries (&ldquo;OPEC&rdquo;) to agree upon and maintain
oil prices and production levels;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>the price and availability of alternative fuels;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>the impact of energy conservation efforts; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>the impact of environmental and other government regulations.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Over-the-Counter Contract Risk </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Currently, over-the-counter transactions are subject to
little regulation. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">A portion of USBO&rsquo;s assets may be
used to trade over-the-counter contracts, such as forward contracts or swap or spot contracts. Currently, over-the-counter contracts
are typically contracts traded on a principal-to-principal, non-cleared basis through dealer markets that are dominated by major
money center and investment banks and other institutions and that prior to the passage of the Dodd-Frank Act had been essentially
unregulated by the CFTC. The markets for over-the-counter contracts have relied upon the integrity of market participants in lieu
of the additional regulation imposed by the CFTC on participants in the futures markets. To date, the forward markets have been
largely unregulated, forward contracts have been executed bi-laterally and, in general, forward contracts have not been cleared
or guaranteed by a third party. On November 16, 2012, the Secretary of the Treasury issued a final determination that exempts both
foreign exchange swaps and foreign exchange forwards from the definition of &ldquo;swap&rdquo; and, by extension, additional regulatory
requirements (such as clearing and margin). The final determination does not extend to other foreign exchange derivatives, such
as foreign exchange options, currency swaps, and non-deliverable forwards. While the Dodd-Frank Act and certain regulations adopted
thereunder are intended to provide additional protections to participants in the over-the-counter market, the current regulation
of the over-the-counter contracts could expose USBO in certain circumstances to significant losses in the event of trading abuses
or financial failure by participants. On November 28, 2012, the CFTC issued its final clearing determination requiring that certain
credit default swaps and interest rate swaps be cleared by registered DCOs. This is the CFTC&rsquo;s first clearing determination
under the Dodd-Frank Act and became effective on February 13, 2013. Determination on other types of swaps are expected in the future,
and, when finalized, could require USBO to centrally clear certain over-the-counter instruments presented entered into and settled
on a bi-lateral basis. See &ldquo;Regulation&rdquo; on page 5 of the Statement of Additional Information for a discussion of how
the over-the-counter market will be subject to much more extensive CFTC oversight and regulation after the implementation of the
Dodd-Frank Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>USBO will be subject to credit risk with respect to counterparties
to over-the-counter contracts entered into by USBO or held by special purpose or structured vehicles. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO faces the risk of non-performance
by the counterparties to the over-the-counter contracts. Unlike in futures contracts, the counterparty to these contracts is generally
a single bank or other financial institution, rather than a clearing organization backed by a group of financial institutions.
As a result, there will be greater counterparty credit risk in these transactions. A counterparty may not be able to meet its obligations
to USBO, in which case USBO could suffer significant losses on these contracts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">If a counterparty becomes bankrupt or otherwise
fails to perform its obligations due to financial difficulties, USBO may experience significant delays in obtaining any recovery
in a bankruptcy or other reorganization proceeding. USBO may obtain only limited recovery or may obtain no recovery in such circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>USBO may be subject to liquidity risk with respect to
its over-the-counter contracts. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Over-the-counter contracts are less marketable
because they are not traded on an exchange, do not have uniform terms and conditions, and are entered into based upon the creditworthiness
of the parties and the availability of credit support, such as collateral, and in general, they are not transferable without the
consent of the counterparty.&nbsp; These conditions make such contracts less liquid than standardized futures contracts traded
on a commodities exchange and could adversely impact USBO&rsquo;s ability to realize the full value of such contracts.&nbsp; In
addition, even if collateral is used to reduce counterparty credit risk, sudden changes in the value of over-the-counter transactions
may leave a party open to financial risk due to a counterparty default since the collateral held may not cover a party&rsquo;s
exposure on the transaction in such situations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In general, valuing over-the-counter derivatives
is less certain than valuing actively traded financial instruments such as exchange traded futures contracts and securities or
cleared swaps because the price and terms on which such over-the-counter derivatives are entered into or can be terminated are
individually negotiated, and those prices and terms may not reflect the best price or terms available from other sources. In addition,
while market makers and dealers generally quote indicative prices or terms for entering into or terminating over-the-counter contracts,
they typically are not contractually obligated to do so, particularly if they are not a party to the transaction. As a result,
it may be difficult to obtain an independent value for an outstanding over-the-counter derivatives transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Dodd-Frank Act requires the CFTC and
SEC to establish &ldquo;both initial and variation margin requirements on all swaps that are not cleared by a registered clearing
organization&rdquo; (i.e., uncleared swaps). In addition, the Dodd-Frank Act provides parties who post initial margin to a swap
dealer or major swap participant with a statutory right to insist that such margin be held in a segregated account with an independent
custodian. At this time, the CFTC has proposed a rule addressing this statutory right of certain market participants but has not
yet implemented any final rules. On November 16, 2012, the Secretary of the Treasury issued a final determination that exempts
both foreign exchange swaps and foreign exchange forwards from the definition of &ldquo;swap&rdquo; and, by extension, additional
regulatory requirements (such as clearing and margin).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risk of Trading in International Markets </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Trading in international markets could expose USBO to
credit and regulatory risk. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO invests primarily in Futures Contracts,
a significant portion of which are traded on exchanges outside the United States, including the ICE Futures. Some non-U.S. markets
present risks because they are not subject to the same degree of regulation as their U.S. counterparts. The CFTC, NFA and the domestic
exchanges have little, if any, regulatory authority over the activities of any foreign boards of trade or exchanges, including
the execution, delivery and clearing of transactions, and have little, if any, power to compel enforcement of the rules of a foreign
board of trade or exchange or of any applicable non-U.S. laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Similarly, the rights of market participants,
such as USBO, in the event of the insolvency or bankruptcy of a non-U.S. market or broker are also likely to be more limited than
in the case of U.S. markets or brokers. As a result, in these markets, USBO has less legal and regulatory protection than it does
when it trades domestically.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In some of these non-U.S. markets, the
performance on a contract is the responsibility of the counterparty and is not backed by an exchange or clearing corporation and
therefore exposes USBO to credit risk. However, Futures Contracts traded on the ICE Futures, including the Benchmark Futures Contract,
are backed by the ICE Futures and may not expose USBO to the risks of some other non-U.S. exchanges or clearing corporations that
do not have similar backing. Trading in non-U.S. markets also leaves USBO susceptible to swings in the value of the local currency
against the U.S. dollar. The Benchmark Futures Contract, however, is traded in U.S. dollars and does not expose USBO to the risk
of currency fluctuations. Additionally, trading on non-U.S. exchanges is subject to the risks presented by exchange controls, expropriation,
increased tax burdens and exposure to local economic declines and political instability. An adverse development with respect to
any of these variables could reduce the profit or increase the loss earned on trades in the affected international markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>International trading activities subject USBO to foreign
exchange risk.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">The price of any non-U.S. commodity interest
and, therefore, the potential profit and loss on such investment, may be affected by any variance in the foreign exchange rate
between the time the order is placed and the time it is liquidated, offset or exercised. As a result, changes in the value of the
local currency relative to the U.S. dollar may cause losses to USBO even if the contract traded is profitable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>USBO&rsquo;s international trading could expose it to
losses resulting from non-U.S. exchanges that are less developed or less reliable than United States exchanges. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Some non-U.S. exchanges may be in a more
developmental stage so that prior price histories may not be indicative of current price dynamics. In addition, USBO may not have
the same access to certain positions on foreign trading exchanges as do local traders, and the historical market data on which
the General Partner bases its strategies may not be as reliable or accessible as it is for U.S. exchanges.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Tax Risk </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>An investor&rsquo;s tax liability may exceed the amount
of distributions, if any, on its units. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Cash or property will be distributed at
the sole discretion of the General Partner. The General Partner has not and does not currently intend to make cash or other distributions
with respect to units. Investors will be required to pay U.S. federal income tax and, in some cases, state, local, or foreign income
tax, on their allocable share of USBO&rsquo;s taxable income, without regard to whether they receive distributions or the amount
of any distributions. Therefore, the tax liability of an investor with respect to its units may exceed the amount of cash or value
of property (if any) distributed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>An investor&rsquo;s allocable share of taxable income
or loss may differ from its economic income or loss on its units. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Due to the application of the
assumptions and conventions applied by USBO in making allocations for tax purposes and other factors, an investor&rsquo;s
allocable share of USBO&rsquo;s income, gain, deduction or loss may be different than its economic profit or loss from its
units for a taxable year. This difference could be temporary or permanent and, if permanent, could result in it being taxed
on amounts in excess of its economic income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Items of income, gain, deduction, loss and credit with
respect to units could be reallocated if the IRS does not accept the assumptions and conventions applied by USBO in allocating
those items, with potential adverse consequences for an investor. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The U.S. tax rules pertaining to partnerships
are complex and their application to large, publicly traded partnerships such as USBO is in many respects uncertain. USBO applies
certain assumptions and conventions in an attempt to comply with the intent of the applicable rules and to report taxable income,
gains, deductions, losses and credits in a manner that properly reflects unitholders&rsquo; economic gains and losses. These assumptions
and conventions may not fully comply with all aspects of the Internal Revenue Code (the &ldquo;Code&rdquo;) and applicable Treasury
Regulations, however, and it is possible that the U.S. Internal Revenue Service will successfully challenge USBO&rsquo;s allocation
methods and require USBO to reallocate items of income, gain, deduction, loss or credit in a manner that adversely affects investors.
If this occurs, investors may be required to file an amended tax return and to pay additional taxes plus deficiency interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>USBO could be treated as a corporation for federal income
tax purposes, which may substantially reduce the value of the units. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO has received an opinion of counsel
that, under current U.S. federal income tax laws, USBO will be treated as a partnership that is not taxable as a corporation for
U.S. federal income tax purposes, provided that (i) at least 90 percent of USBO&rsquo;s annual gross income consists of &ldquo;qualifying
income&rdquo; as defined in the Code, (ii) USBO is organized and operated in accordance with its governing agreements and applicable
law and (iii) USBO does not elect to be taxed as a corporation for federal income tax purposes. Although the General Partner anticipates
that USBO has satisfied and will continue to satisfy the &ldquo;qualifying income&rdquo; requirement for all of its taxable years,
that result cannot be assured. USBO has not requested and will not request any ruling from the IRS with respect to its classification
as a partnership not taxable as a corporation for federal income tax purposes. If the IRS were to successfully assert that USBO
is taxable as a corporation for federal income tax purposes in any taxable year, rather than passing through its income, gains,
losses and deductions proportionately to unitholders, USBO would be subject to tax on its net income for the year at corporate
tax rates. In addition, although the General Partner does not currently intend to make distributions with respect to units, any
distributions would be taxable to unitholders as dividend income. Taxation of USBO as a corporation could materially reduce the
after-tax return on an investment in units and could substantially reduce the value of the units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>USBO is organized and operated as a limited partnership
in accordance with the provisions of the LP Agreement and applicable state law, and therefore, USBO has a more complex tax treatment
than traditional mutual funds.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">USBO is organized and operated as a limited
partnership in accordance with the provisions of the LP Agreement and applicable state law. No U.S. federal income tax is paid
by USBO on its income. Instead, USBO will furnish unitholders each year with tax information on IRS Schedule K-1 (Form 1065) and
each U.S. unitholder is required to report on its U.S. federal income tax return its allocable share of the income, gain, loss
and deduction of USBO. This must be reported without regard to the amount (if any) of cash or property the unitholder receives
as a distribution from USBO during the taxable year. A unitholder, therefore, may be allocated income or gain by USBO but receive
no cash distribution with which to pay the tax liability resulting from the allocation, or may receive a distribution that is insufficient
to pay such liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt">In addition to federal income taxes, unitholders
may be subject to other taxes, such as state and local income taxes, unincorporated business taxes, business franchise taxes and
estate, inheritance or intangible taxes that may be imposed by the various jurisdictions in which USBO does business or owns property
or where the unitholders reside. Although an analysis of those various taxes is not presented here, each prospective unitholder
should consider their potential impact on its investment in USBO. It is each unitholder&rsquo;s responsibility to file the appropriate
U.S. federal, state, local and foreign tax returns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>PROSPECTIVE INVESTORS ARE STRONGLY URGED
TO CONSULT THEIR OWN TAX ADVISOR WITH RESPECT TO THE POSSIBLE TAX CONSEQUENCES TO THEM OF AN INVESTMENT IN UNITS; SUCH TAX CONSEQUENCES
MAY DIFFER IN RESPECT TO DIFFERENT INVESTORS. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>THE OFFERING </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What is USBO? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO is a Delaware limited partnership
organized on September 2, 2009. USBO maintains its main business office at 1999 Harrison Street, Suite 1530, Oakland, California
94612. USBO is a commodity pool that issues limited partnership interests (&ldquo;units&rdquo;) traded on the NYSE Arca, Inc. (the
&ldquo;NYSE Arca&rdquo;). It operates pursuant to the terms of the LP Agreement, which grants full management control to the General
Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO is a publicly traded limited partnership
which seeks to have the daily changes in percentage terms of its units&rsquo; NAV track the daily changes in percentage terms of
the spot price of Brent crude oil, as measured by the daily changes in the price of the futures contract for Brent crude oil traded
on the ICE Futures Exchange, less USBO&rsquo;s expenses. The General Partner does not intend to operate USBO in a fashion such
that its per unit NAV will equal, in dollar terms, the spot price of Brent crude oil or any particular futures contract based on
crude oil. It is not the intent of USBO to be operated in a fashion such that its NAV will reflect the percentage change of the
price of any particular futures contract as measured over a time period greater than one day. USBO invests in a mixture of listed
crude oil futures contracts, other non-listed crude oil related investments, Treasuries, cash and cash equivalents. USBO&rsquo;s
units began trading on the NYSE Arca on June&nbsp;2, 2010. As of January 31, 2013, USBO had total net assets of $47,334,729 and
had outstanding units of 5,500,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Who is the General Partner? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Our sole General Partner is United States
Commodity Funds LLC, a single member limited liability company that was formed in the state of Delaware on May&nbsp;10, 2005. Prior
to June&nbsp;13, 2008, the General Partner was known as Victoria Bay Asset Management, LLC. It maintains its main business office
at 1999 Harrison Street, Suite 1530, Oakland, California, 94612. The General Partner is a wholly-owned subsidiary of Wainwright
Holdings, Inc., a Delaware corporation (&ldquo;Wainwright&rdquo;). Mr.&nbsp;Nicholas Gerber (discussed below) controls Wainwright
by virtue of his ownership of Wainwright&rsquo;s shares. Wainwright is a holding company that previously owned an insurance company
organized under Bermuda law, which has been liquidated, and a registered investment advisor firm named Ameristock Corporation,
which has been distributed to the Wainwright shareholders. The General Partner is a member of the NFA and is registered with the
CFTC as of December&nbsp;1, 2005. The General Partner&rsquo;s registration as a CPO with the NFA was approved on December&nbsp;1,
2005.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">See &ldquo;Composite Performance Data for
USBO&rdquo; on page 28. See also &ldquo;Prior Performance of the General Partner and Related Public Funds&rdquo; on page 29.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner is required to evaluate
the credit risk of USBO to the futures commission merchant, oversee the purchase and sale of USBO&rsquo;s units by certain Authorized
Purchasers, review daily positions and margin requirements of USBO, and manage USBO&rsquo;s investments. The General Partner also
pays the fees of the Marketing Agent, the Administrator, and the Custodian.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Limited partners have no right to elect
the General Partner on an annual or any other continuing basis. If the General Partner voluntarily withdraws, however, the holders
of a majority of USBO&rsquo;s outstanding units (excluding for purposes of such determination units owned, if any, by the withdrawing
General Partner and its affiliates) may elect its successor. The General Partner may not be removed as general partner except upon
approval by the affirmative vote of the holders of at least 66&nbsp;2/3% of our outstanding units (excluding units owned, if any,
by the General Partner and its affiliates), subject to the satisfaction of certain conditions set forth in the LP Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The business and affairs of our General
Partner are managed by a board of directors (the &ldquo;Board&rdquo;), which is comprised of three management directors some of
whom are also its executive officers (the &ldquo;Management Directors&rdquo;), and three independent directors who meet the independent
director requirements established by the NYSE Arca Equities Rules and the Sarbanes-Oxley Act of 2002. Notwithstanding the foregoing,
the Management Directors have the authority to manage the General Partner pursuant to its Limited Liability Company Agreement,
as amended from time to time. Through its Management Directors, the General Partner manages the day-to-day operations of USBO.
The Board has an audit committee which is made up of the three independent directors (Peter M. Robinson, Gordon L. Ellis, and Malcolm
R. Fobes III). The audit committee is governed by an audit committee charter that is posted on USBO&rsquo;s website. Gordon L.
Ellis and Malcolm R. Fobes III meet the financial sophistication requirements of the NYSE Arca and the audit committee charter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Mr.&nbsp;Nicholas Gerber and Mr.&nbsp;Howard
Mah serve as executive officers of the General Partner. USBO has no executive officers. Its affairs are generally managed by the
General Partner. The following individuals serve as Management Directors of the General Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>Nicholas Gerber</I></B> has been
the President and CEO of the General Partner since June 9, 2005 and a Management Director of the General Partner since May 10,
2005. He maintains his main business office at 1999 Harrison Street, Suite 1530, Oakland, California 94612. He has been listed
with the CFTC as a Principal of the General Partner since November 29, 2005, as Branch Manager of the General Partner since May
15, 2009, and registered with the CFTC as an Associated Person of the General Partner on December 1, 2005. Mr. Gerber also served
as Vice President/Chief Investment Officer of Lyon&rsquo;s Gate Reinsurance Company, Ltd., a company formed to reinsure workmen&rsquo;s
compensation insurance, from June 2003 to December 2009. Mr. Gerber has an extensive background in securities portfolio management
and in developing investment funds that make use of indexing and futures contracts. He is also the founder of Ameristock Corporation,
a California-based investment adviser registered under the Investment Advisers Act of 1940. From August 1995 to January 2013, Mr.
Gerber was the portfolio manager of the Ameristock Mutual Fund, Inc. a mutual fund registered under the Investment Company Act
of 1940, focused on large cap U.S. equities that, as of December 31, 2012, had $126,879,540 in assets. On January 11, 2013, the
Ameristock Mutual Fund, Inc. merged with and into the Drexel Hamilton Centre American Equity Fund, a series of Drexel Hamilton
Mutual Funds. Drexel Hamilton Mutual Funds is not affiliated with Ameristock Corporation, the Ameristock Mutual Fund, Inc. or the
General Partner. He has also been a Trustee for the Ameristock ETF Trust since June 2006, and served as a portfolio manager for
the Ameristock/Ryan 1 Year, 2 Year, 5 Year, 10 Year and 20 Year Treasury ETF from June 2007 to June 2008 when such funds were liquidated.
In these roles, Mr. Gerber has gained extensive experience in evaluating and retaining third-party service providers, including
custodians, accountants, transfer agents, and distributors. Mr. Gerber has passed the Series 3 examination for associated persons.
He holds an MBA in finance from the University of San Francisco and a BA from Skidmore College. Mr. Gerber is 50 years old.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In concluding that Mr. Gerber should serve
as Management Director of the General Partner, the General Partner considered his broad business experiences in the industry including:
forming and managing investment companies and commodity pools, raising capital for such entities and founding and managing non-finance
related companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>Howard Mah</I></B> has been a Management
Director of the General Partner since May 10, 2005, Secretary of the General Partner since June 9, 2005, and Chief Financial Officer
of the General Partner since May 23, 2006 and Treasurer since February 23, 2012. He has been listed with the CFTC as a Principal
of the General Partner since November 29, 2005. In these roles, Mr. Mah is currently involved in the management of USBO and the
Related Public Funds and will be involved in the management of USSF, UNGD, USGO, UAC and HARD, if such funds commence operations.
Mr. Mah also served as the General Partner&rsquo;s Chief Compliance Officer from February 2006 until January 2013. He received
a Bachelor of Education from the University of Alberta, in 1986 and an MBA from the University of San Francisco in 1988. He served
as Secretary and Chief Compliance Officer of the Ameristock ETF Trust from February 2007 until June 2008 when the trust was liquidated,
Chief Compliance Officer of Ameristock Corporation since January 2001; a tax and finance consultant in private practice since January
1995, Secretary of Ameristock Mutual Fund from June 1995 to January 2013 and Ameristock Focused Value Fund from December 2000 to
January 2005; Chief Compliance Officer of Ameristock Mutual Fund from August 2004 to January 2013 and the Co-Portfolio Manager
of the Ameristock Focused Value Fund from December 2000 to January 2005. Mr. Mah is 48 years old.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In concluding that Mr. Mah should serve
as Management Director of the General Partner, the General Partner considered his background in accounting and finance, as well
as his experience as Chief Compliance Officer for the General Partner and Ameristock Corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>Andrew F. Ngim</I></B> has been a
Management Director of the General Partner since May 10, 2005 and Treasurer of the General Partner from June 9, 2005 to February
23, 2012. Mr. Ngim has acted as Portfolio Manager for USCI, CPER, USAG and USMI since January 31, 2013. He has been listed with
the CFTC as a Principal of the General Partner since November 29, 2005. Mr. Ngim is currently involved in the management of USBO
and the Related Public Funds and will be involved in the management of USSF, UNGD, USGO, UAC and HARD, if such funds commence operations.
He received a Bachelor of Arts from the University of California at Berkeley in 1983. Mr. Ngim has been Ameristock Corporation&rsquo;s
Managing Director from January 1999 to January 2013 and co-portfolio manager of Ameristock Mutual Fund Inc. from January 2000 to
January 2013, Trustee of the Ameristock ETF Trust from February 2007 to June 2008, and served as a portfolio manager for the Ameristock/Ryan
1 Year, 2 Year, 5 Year, 10 Year and 20 Year Treasury ETF from June 2007 to June 2008 when such funds were liquidated. Mr. Ngim
is 52 years old.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In concluding that Mr. Ngim should serve
as Management Director of the General Partner, the General Partner considered his broad career in the financial services industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The following individuals provide significant
services to each of CPER but are employed by the General Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>John P. Love</I></B>, CFA has acted
as a Portfolio Manager since the launch of USOF in 2006 and is currently the Portfolio Manager for USNG, UGA, USDHO and US12NG.
Effective March 1, 2010, Mr. Love became the Senior Portfolio Manager for the Related Public Funds and is expected to be the Portfolio
Manager for USSF, UNGD, USGO and UAC, if such funds commence operations. Mr. Love is also employed by the General Partner. He has
been listed with the CFTC as a Principal of the General Partner since January 17, 2006. Mr. Love also served as the operations
manager of Ameristock Corporation from October 2002 to January 2007, where he was responsible for back office and marketing activities
for the Ameristock Mutual Fund and Ameristock Focused Value Fund and for the firm in general. Mr. Love holds a Series 7 and a Series
3 license and was registered with the CFTC as an Associated Person of the General Partner from December 1, 2005 through April 16,
2009. Mr. Love received his CFA designation in 2012. He is a member of the CFA Institute (formerly AIMR) and the CFA Society of
Los Angeles. Mr. Love is a graduate of the University of Southern California. Mr. Love is 41 years old.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>John T. Hyland</I></B>, CFA is employed
by the General Partner and has acted as the Chief Investment Officer for the General Partner since January 2008. Mr. Hyland was
Portfolio Manager for USBO, USOF, USNG, US12OF, UGA, USDHO, USSO, US12NG, USBO, USCI and CPER beginning in April 2006, April 2007,
December 2007, February 2008, April 2008, September 2009, November 2009, June 2010, August 2010 and November 2011, respectively.
He will also be the Chief Investment Officer for USSF, UNGD, USGO, UAC and HARD upon the commencement of such funds&rsquo; operations.
Since December 1, 2005, Mr. Hyland has been registered with the CFTC as an Associated Person of the General Partner and since January
17, 2006, he has been listed with the CFTC as a Principal of the General Partner. As part of his responsibilities for the General
Partner and the Related Public Funds, Mr. Hyland oversees the day-to-day trading, helps set investment policies and oversees USBo
and the Related Public Funds&rsquo; activities with their futures commission brokers, custodian-administrator and marketing agent.
Mr. Hyland has an extensive background in portfolio management and research with both equity and fixed income securities, as well
as in the development of new types of complex investment funds. In July 2001, Mr. Hyland founded Towerhouse Capital Management,
LLC, a firm that provided portfolio management and new fund development expertise to non-U.S. institutional investors through December
2009. Since January 2010, Towerhouse Capital Management has been inactive. Mr. Hyland was a Principal for Towerhouse in charge
of portfolio research and product development regarding U.S. and non-U.S. real estate related securities. Mr. Hyland received his
CFA designation in 1994. Mr. Hyland is a member of the CFA Institute (formerly AIMR) and is a member and former president of the
CFA Society of San Francisco. He is also a member of the National Association of Petroleum Investment Analysts, a not-for-profit
organization of investment professionals focused on the oil industry. He is a graduate of the University of California, Berkeley.
Mr. Hyland is 53 years old.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>Ray W. Allen</I></B> acts as a Portfolio
Manager for USBO, USOF, US12OF and USSO. He has been employed by the General Partner since January 14, 2008. He holds a Series
3 license and registered with the CFTC as an Associated Person of the General Partner from March 25, 2008 to November 1, 2012.
He has been listed with the CFTC as a Principal of the General Partner since March 18, 2009. Mr. Allen&rsquo;s responsibilities
include daily trading and operations for USBO, USOF, US12OF and USSO. Mr. Allen also acted as a Portfolio Manager for UGA, USDHO
and US12NG until March 1, 2010. In addition, from February 2002 to October 2007, Mr. Allen was responsible for analyzing and evaluating
the creditworthiness of client companies at Marble Bridge Funding Group Inc., in Walnut Creek, CA. Marble Bridge Funding Group
Inc. is a commercial finance company providing capital to entrepreneurial companies. For the period from October 2007 to January
14, 2008, Mr. Allen was not employed by the General Partner and did not engage in any business-related activity. Mr. Allen received
a BA in Economics from the University of California at Berkeley in 1980. Mr. Allen is 56 years old.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The following individuals serve
as independent directors of the General Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>Peter M. Robinson</I></B> has been
an independent director of the General Partner since September 30, 2005 and, as such, serves on the Board of the General Partner,
which acts on behalf of USBO and the Related Public Funds. He has been listed with the CFTC as a Principal of the General Partner
since December 2005. Mr. Robinson has been employed as a Research Fellow with the Hoover Institution since 1993. The Hoover Institution
is a public policy think tank located on the campus of Stanford University. Mr. Robinson graduated from Dartmouth College in 1979
and Oxford University in 1982. Mr. Robinson received an MBA from the Stanford University Graduate School of Business. Mr. Robinson
has also written three books and has been published in the New York Times, Red Herring, and Forbes ASAP and he is the editor of
Can Congress Be Fixed?: Five Essays on Congressional Reform (Hoover Institution Press, 1995). Mr. Robinson is 55 years old.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In concluding that Mr. Robinson should
serve as independent director of the General Partner, the General Partner considered his broad experience in the United States
government, including his employment at the SEC, and his knowledge of and insight into public policy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>Gordon L. Ellis</I></B> has been
an independent director of the General Partner since September 30, 2005 and, as such, serves on the Board of the General Partner,
which acts on behalf of USBO and the Related Public Funds. He has been listed with the CFTC as a Principal of the General Partner
since November 2005. Mr. Ellis was a founder and Chairman of International Absorbents, Inc., a NYSE listed company and the parent
company of Absorption Corp., since July 1988, President and Chief Executive Officer since November 1996 and a Class I Director
of the company since July 1985. Mr. Ellis was also a director of Absorption Corp., International Absorbents, Inc.&rsquo;s wholly-owned
subsidiary which is engaged in developing, manufacturing and marketing a wide range of animal care and industrial absorbent products.
International Absorbents and Absorption Corp were sold to a private investment banking firm in May 2010. Mr. Ellis continues as
a director of the privatized firm. Mr. Ellis was chairman and a founder of Polymer Solutions, Inc. from April 1986 to February
2004, a former publicly-held company that sold all of its assets to a senior coatings manufacturer effective February 3, 2004.
Polymer Solutions previously developed and manufactured paints, coatings, stains and primers for wood furniture manufacturers.
Mr. Ellis is founder and chairman of Lupaka Gold Corp. since November 2000, a Toronto Stock Exchange listed company developing
a precious metal deposit in South America (from November 2000 to May 2010, Lupaka Gold Corp. was called Kcrok Enterprises Ltd.).
Mr. Ellis has his Chartered Directors designation from The Director&rsquo;s College (a joint venture of McMaster University and
The Conference Board of Canada). Mr. Ellis is a professional engineer with an MBA in international finance. Mr. Ellis is 66 years
old.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In concluding that Mr. Ellis should serve
as independent director of the General Partner, the General Partner considered his experience serving as the Chairman and Chief
Executive Officer of a former publicly-traded corporation as well as his experience as an entrepreneur.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>Malcolm R. Fobes III</I></B> has
been an independent director of the General Partner since September 30, 2005 and, as such, serves on the Board of the General Partner,
which acts on behalf of USBO and the Related Public Funds. He has been listed with the CFTC as a Principal of the General Partner
since November 2005. Mr. Fobes is the founder, Chairman and Chief Executive Officer of Berkshire Capital Holdings, Inc., a California-based
investment adviser registered under the Investment Advisers Act of 1940, that has been sponsoring and providing portfolio management
services to mutual funds since June 1997. Since June 1997, Mr. Fobes has been the Chairman and President of The Berkshire Funds,
a mutual fund investment company registered under the Investment Company Act of 1940. Mr. Fobes also serves as portfolio manager
of the Berkshire Focus Fund, a mutual fund registered under the Investment Company Act of 1940, which concentrates its investments
in the electronic technology industry. From April 2000 to July 2006, Mr. Fobes also served as co-portfolio manager of The Wireless
Fund, a mutual fund registered under the Investment Company Act of 1940, which concentrates its investments in companies engaged
in the development, production, or distribution of wireless-related products or services. In these roles, Mr. Fobes has gained
extensive experience in evaluating and retaining third-party service providers, including custodians, accountants, transfer agents,
and distributors. Mr. Fobes was also contributing editor of Start a Successful Mutual Fund: The Step-by-Step Reference Guide to
Make It Happen (JV Books, 1995). Mr. Fobes holds a B.S. degree in Finance with a minor in Economics from San Jose State University
in California. Mr. Fobes is 48 years old.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In concluding that Mr.&nbsp;Fobes should
serve as independent director of the General Partner, the General Partner considered his background as founder, Chairman and Chief
Executive Officer of a registered investment adviser as well as Chairman, President, Chief Financial Officer and Portfolio Manager
of a mutual fund investment company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The following are individual Principals,
as that term is defined in CFTC Rule 3.1, for the General Partner: Nicholas Gerber, Melinda Gerber, the Nicholas and Melinda Gerber
Living Trust, Howard Mah, Andrew Ngim, Peter Robinson, Gordon Ellis, Malcolm Fobes, John Love, John Hyland, Ray Allen, Wainwright
Holdings Inc. and Margaret Johnson. These individuals are Principals due to their positions, however, Nicholas Gerber and Melinda
Gerber are also Principals due to their controlling stake in Wainwright. None of the Principals owns or has any other beneficial
interest in USBO. John Love, Ray Allen and John Hyland make trading and investment decisions for USBO. John Love and Ray Allen
execute trades on behalf of USBO. In addition, Nicholas Gerber and John Hyland are registered with the CFTC as Associated Persons
of the General Partner and are NFA Associate Members.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Compensation to the General Partner and Other Compensation
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO does not directly compensate any of
the executive officers noted above. The executive officers noted above are compensated by the General Partner for the work they
perform on behalf of USBO and other entities controlled by the General Partner. USBO does not reimburse the General Partner for,
nor does it set the amount or form of any portion of, the compensation paid to the executive officers by the General Partner. USBO
pays fees to the General Partner pursuant to the LP Agreement under which it is obligated to pay the General Partner an annualized
fee of 0.75% of its average daily net assets. For 2012, USBO paid the General Partner aggregate management fees of $391,039.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Director Compensation </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The following table sets forth compensation
earned during the year ended December 31, 2012, by the directors of the General Partner. USBO&rsquo;s portion of the aggregate
fees paid to the directors for the year ended December 31, 2012 was $5,401.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">Name</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fees<BR> Earned<BR> or<BR> Paid in<BR> Cash</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Stock<BR> Awards</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Option<BR> Awards</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Non-Equity<BR> Incentive&nbsp;Plan<BR> Compensation</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Change in<BR> Pension<BR> Value&nbsp;and<BR> Nonqualified<BR> Deferred<BR> Compensation<BR> Plan</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">All Other<BR> Compensation</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -12pt; padding-left: 12pt">Management Directors</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 23%; text-align: left; text-indent: -12pt; padding-left: 12pt">Nicholas Gerber</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">NA</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">NA</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right"><FONT STYLE="font-size: 10pt">NA</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Andrew F. Ngim</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">NA</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">NA</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">NA</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Howard Mah</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">NA</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">NA</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">NA</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Robert L. Nguyen(1)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">NA</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -12pt; padding-left: 12pt">Independent Directors</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Peter M. Robinson</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">101,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">NA</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">NA</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">NA</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">101,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Gordon L. Ellis</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">101,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">NA</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">NA</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">NA</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">101,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt"><FONT STYLE="font-size: 10pt">Malcolm R. Fobes III<SUP>(2)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">121,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">NA</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">NA</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">NA</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">121,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: -24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">(1)</TD><TD>Effective March 20, 2012, Mr. Nguyen resigned as a Management Director of the General Partner.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">(2)</TD><TD>Mr. Fobes serves as chairman of the audit committee of the General Partner and receives additional compensation in recognition
of the additional responsibilities he has undertaken in this role.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Market Price of Units </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO&rsquo;s units have traded on the NYSE
Arca under the symbol &ldquo;BNO&rdquo; since June&nbsp;2, 2010. The following table sets forth the range of reported high and
low sale prices of the units as reported on NYSE Arca for the periods indicated below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>High</B></P> </TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Low</B></P> </TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Fiscal year 2012</P> </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 64%; text-align: left; text-indent: -12pt; padding-left: 12pt">First quarter</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">88.58</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">76.68</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Second quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">88.16</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">63.45</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Third quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">84.41</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">68.99</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -12pt; padding-left: 12pt">Fourth quarter</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">$</TD><TD STYLE="padding-bottom: 1pt; text-align: right">83.56</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">$</TD><TD STYLE="padding-bottom: 1pt; text-align: right">76.91</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Fiscal year 2011</P> </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">First quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">77.82</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">61.86</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Second quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">84.11</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">70.43</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Third quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">79.31</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">67.64</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Fourth quarter</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">79.10</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">67.40</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">As of December 31, 2012, USBO had 2,448
holders of units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Prior Performance of USBO </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner manages USBO, which
is a commodity pool that issues units traded on the NYSE Arca. The chart below shows, as of January 31, 2013, the number of Authorized
Purchases, the total number of baskets created and redeemed since inception and the number of outstanding units for USBO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">#&nbsp;of&nbsp;Authorized<BR> Purchases</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Baskets<BR> Purchased</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Baskets<BR> Redeemed</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Outstanding<BR> Units</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 38%; font-weight: bold; text-indent: -12pt; padding-left: 12pt">USBO</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">9</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">49</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">47</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">5,500,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Since the commencement of the offering
of USBO units to the public on June 2, 2010 to January 31, 2013, the simple average daily change in its benchmark futures contract
was 0.097%, while the simple average daily change in the NAV of USBO over the same time period was 0.093%. The average daily difference
was (0.004)% (or (0.4) basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the benchmark
futures contract, the average error in daily tracking by the NAV was (0.883)%, meaning that over this time period USBO&rsquo;s
tracking error was within the plus or minus 10% range established as its benchmark tracking goal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The table below shows the relationship
between the trading prices of the units and the daily NAV of USBO, since inception through January 31, 2013. The first row shows
the average amount of the variation between USBO&rsquo;s closing market price and NAV, computed on a daily basis since inception,
while the second and third rows depict the maximum daily amount of the end of day premiums and discounts to NAV since inception,
on a percentage basis. The General Partner believes that maximum and minimum end of day premiums and discounts typically occur
because trading in the units continues on the NYSE Arca until 4:00 p.m. New York time while regular trading in the Benchmark Component
Futures Contracts on the Futures Exchanges ceases at 2:30 p.m. New York time and the value of the Benchmark Component Futures Contracts,
for purposes of determining its end of day NAV, can be determined at that time. The information for the Related Public Funds may
be found on page 30.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">USBO</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 67%; text-indent: -12pt; padding-left: 12pt">Average Difference</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">0.01</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Max Premium %</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.66</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Max Discount %</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6.52</TD><TD STYLE="text-align: left">)%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">For more information on the performance
of USBO, see the Performance Tables below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>USBO: </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Experience in Raising and Investing in USBO through January
31, 2013</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B>&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.75in">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 87%; text-align: left; text-indent: -12pt; padding-left: 12pt">Dollar Amount Offered*</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">2,500,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Dollar Amount Raised</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">312,718,853</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Organizational and Offering Expenses:**</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 0.5in">SEC registration fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">139,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 0.5in">FINRA registration fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">75,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 0.5in">Listing fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 0.5in">Auditor&rsquo;s fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 0.5in">Legal fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">268,670</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 0.5in">Printing expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">39,072</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Length of USBO offering</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">Continuous</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">*</TD><TD>Reflects the offering price per unit set forth on the cover page of the registration statement registering such units filed
with the SEC.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">**</TD><TD>These expenses were paid for by the General Partner.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Compensation to the General Partner and Other Compensation:
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Expenses paid by USBO through January 31, 2013 in Dollar
Terms: </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.75in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Expenses</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Amount in<BR> Dollar&nbsp;Terms</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 87%; text-align: left; text-indent: -12pt; padding-left: 12pt">Amount Paid or Accrued to General Partner</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">784,934</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Amount Paid or Accrued in Portfolio Brokerage Commissions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">74,788</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Other Amounts Paid or Accrued*</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">151,020</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Total Expenses Paid or Accrued</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,010,742</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Expenses Waived**</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(270,604</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Total Expenses Paid or Accrued Including Expenses Waived</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,281,347</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">*</TD><TD>Includes expenses relating to legal fees, auditing fees, printing expenses, printing expenses, tax reporting fees, prepaid
insurance expenses and miscellaneous expenses and fees and expenses paid to the independent directors of the General Partner.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">**</TD><TD>The General Partner, though under no obligation to do so, agreed to pay certain expenses, to the extent that such expenses
exceeded 0.15% (15 basis points) of USBO&rsquo;s NAV, on an annualized basis, through at least June&nbsp;30, 2013. The General
Partner has no obligation to continue such payment into subsequent periods.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Expenses paid by USBO through January 31, 2013 as a Percentage
of Average Daily Net Assets: </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="margin-left: 0.75in; border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; font-weight: bold"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Expenses</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: left; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Amount&nbsp;As&nbsp;a&nbsp;Percentage&nbsp;of<BR> Average Daily Net Assets</B></P>

</TD><TD NOWRAP STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt; width: 77%">Amount Paid or Accrued to General Partner</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 1%">&nbsp;</TD><TD STYLE="text-align: right; width: 10%"><FONT STYLE="font-size: 10pt">0.74%&nbsp;annualized</FONT></TD><TD STYLE="text-align: left; width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Amount Paid or Accrued in Portfolio Brokerage Commissions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0.07% annualized</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Other Amounts Paid or Accrued</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0.14% annualized</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Total Expenses Paid or Accrued</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">0.95% annualized</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Expenses Waived</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">(0.26)%&nbsp;annualized</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Total Expenses Paid or Accrued Including Expenses Waived</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">1.21% annualized</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>USBO: </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>COMPOSITE PERFORMANCE DATA FOR USBO </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Name of Commodity Pool United States Brent
Oil Fund, LP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Type of Commodity Pool Exchange traded
security</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Inception of Trading June 2, 2010</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Aggregate Subscriptions (from inception
through January 31, 2013) $312,718,853</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Total Net Assets as of January 31, 2013
$47,334,729</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">NAV per Unit as of January 31, 2013 $86.06</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Monthly Percentage Draw-down May
2012 (14.59)%</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Peak-to-Valley Draw-down Mar 12 -
Jun 12 (19.62)%</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Number of Unitholders (as of December 31,
2012): 2,448</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="14" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Rates of Return*</B></P> </TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Month</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2010</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt"></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2011</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2012</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2013</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 48%; text-indent: -12pt; padding-left: 12pt">January</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&mdash;</TD><TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">6.61</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">3.64</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">5.02</TD><TD NOWRAP STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">February</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.42</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.78</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">March</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.92</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.84</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">April</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.44</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.36</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">May</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7.17</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(14.59</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">June</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.94</TD><TD NOWRAP STYLE="text-align: left">%**</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.40</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.61</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">July</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.83</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.94</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.50</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">August</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.84</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.55</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.61</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">September</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.79</TD><TD NOWRAP STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9.85</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.55</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">October</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.61</TD><TD NOWRAP STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.51</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.67</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">November</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.00</TD><TD NOWRAP STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.90</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.02</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">December</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.09</TD><TD NOWRAP STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.65</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.65</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Annual Rate of Return</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26.16</TD><TD NOWRAP STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18.17</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.94</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.02</TD><TD NOWRAP STYLE="text-align: left">%***</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">*</TD><TD>The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">**</TD><TD>Partial from June&nbsp;2, 2010</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left">***</TD><TD STYLE="text-align: justify">Through January 31, 2013</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Draw-down: Losses experienced over a specified
period. Draw-down is measured on the basis of monthly returns only and does not reflect intra-month figures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Monthly Percentage Draw-down: The
largest single month loss sustained since inception of trading.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Peak-to-Valley Draw-down: The largest
percentage decline in the NAV per unit over the history of the fund. This need not be a continuous decline, but can be a series
of positive and negative returns where the negative returns are larger than the positive returns. Worst Peak-to-Valley Draw-down
represents the greatest percentage decline from any month-end NAV per unit that occurs without such month-end NAV per unit being
equaled or exceeded as of a subsequent month-end. For example, if the NAV per unit declined by $1 in each of January and February,
increased by $1 in March and declined again by $2 in April, a &ldquo;peak-to-valley drawdown&rdquo; analysis conducted as of the
end of April would consider that &ldquo;drawdown&rdquo; to be still continuing and to be $3 in amount, whereas if the NAV per unit
had increased by $2 in March, the January-February drawdown would have ended as of the end of February at the $2 level.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Prior Performance of the General Partner
and Related Public Funds </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner manages the Related
Public Funds. Each of the Related Public Funds is a commodity pool that issues units traded on the NYSE Arca. The chart below shows,
as of January 31, 2013, the number of Authorized Purchasers, the total number of baskets created and redeemed since inception and
the number of outstanding units for each of the Related Public Funds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>#&nbsp;of&nbsp;Authorized<BR> Purchasers</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Baskets<BR> Purchased</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Baskets<BR> Redeemed</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Outstanding<BR> Units</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 38%; font-weight: bold; text-indent: -12pt; padding-left: 12pt">USDHO</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">12</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">10</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">9</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">200,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-indent: -12pt; padding-left: 12pt">USOF</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,051</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,742</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,900,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-indent: -12pt; padding-left: 12pt">US12OF</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">168</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">147</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,800,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-indent: -12pt; padding-left: 12pt">USNG</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,409</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,279</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">58,666,476</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-indent: -12pt; padding-left: 12pt">UGA</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">91</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">97</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-indent: -12pt; padding-left: 12pt">US12NG</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">54</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,700,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-indent: -12pt; padding-left: 12pt">USSO</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">400,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-indent: -12pt; padding-left: 12pt">USCI</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">136</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,600,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-indent: -12pt; padding-left: 12pt">CPER</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-indent: -12pt; padding-left: 12pt">USAG</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-indent: -12pt; padding-left: 12pt">USMI</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The ability of each of the Related Public
Funds (other than USBO) to track its benchmark from inception to January 31, 2013 presented below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Since the commencement of the offering
of USDHO units to the public on April 9, 2008 to January 31, 2013, the simple average daily change in its Benchmark Futures Contract
was (0.005)%, while the simple average daily change in the NAV of USDHO over the same time period was (0.007)%. The average daily
difference was 0.002% (or 0.2 basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the
Benchmark Futures Contract, the average error in daily tracking by the NAV (0.812)%, meaning that over this time period USDHO&rsquo;s
tracking error was within the plus or minus 10% range established as its benchmark tracking goal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Since the commencement of the offering
of USOF units to the public on April 10, 2006 to January 31, 2013, the simple average daily change in its benchmark oil futures
contract was (0.012)%, while the simple average daily change in the NAV of USOF over the same time period was (0.010)%. The average
daily difference was (0.002)% (or (0.2) basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement
of the benchmark oil futures contract, the average error in daily tracking by the NAV was 0.468%, meaning that over this time period
USOF&rsquo;s tracking error was within the plus or minus 10% range established as its benchmark tracking goal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Since the commencement of the offering
of US12OF units to the public on December 6, 2007 to January 31, 2013, the simple average daily change in the average price of
its benchmark futures contracts was 0.011%, while the simple average daily change in the NAV of US12OF over the same time period
was 0.010%. The average daily difference was (0.001)% (or (0.1) basis points, where 1 basis point equals 1/100 of 1%). As a percentage
of the daily movement of the average price of the benchmark futures contracts, the average error in daily tracking by the NAV was
(0.596)%, meaning that over this time period US12OF&rsquo;s tracking error was within the plus or minus 10% range established as
its benchmark tracking goal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Since the commencement of the offering
of USNG units to the public on April 18, 2007 to January 31, 2013, the simple average daily change in its benchmark futures contract
was (0.164)% while the simple average daily change in the NAV of USNG over the same time period was (0.165)%. The average daily
difference was 0.001% (or 0.1 basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the
benchmark futures contract, the average error in daily tracking by the NAV was 0.364%, meaning that over this time period USNG&rsquo;s
tracking error was within the plus or minus 10% range established as its benchmark tracking goal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Since the commencement of the offering
of UGA units to the public on February 26, 2008 to January 31, 2013, the simple average daily change in its benchmark futures contract
was 0.052%, while the simple average daily change in the NAV of UGA over the same time period was 0.050%. The average daily difference
was (0.002)% (or (0.2) basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the benchmark
futures contract, the average error in daily tracking by the NAV was (0.831)%, meaning that over this time period UGA&rsquo;s tracking
error was within the plus or minus 10% range established as its benchmark tracking goal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Since the commencement of the offering
of US12NG units to the public on November 18, 2009 to January 31, 2013, the simple average daily change in the average price of
its benchmark futures contracts was (0.110)%, while the simple average daily change in the NAV of US12NG over the same time period
was (0.114)%. The average daily difference was 0.004% (or 0.4 basis points, where 1 basis point equals 1/100 of 1%). As a percentage
of the daily movement of the average price of the benchmark futures contracts, the average error in daily tracking by the NAV was
(0.569)%, meaning that over this time period US12NG&rsquo;s tracking error was within the plus or minus 10% range established as
its benchmark tracking goal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Since the commencement of the offering
of USSO units to the public on September 24, 2009 to January 31, 2013, the inverse of the simple average daily change in its benchmark
futures contract was (0.019)%, while the simple average daily change in the NAV of USSO over the same time period was (0.023)%.
The average daily difference was 0.004% (or 0.4 basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the inverse
of the daily movement of the benchmark futures contract, the average error in daily tracking by the NAV was (1.134)%, meaning that
over this time period USSO&rsquo;s tracking error was within the plus or minus 10% range established as its benchmark tracking
goal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Since the commencement of the offering
of USCI units to the public on August 10, 2010 to January 31, 2013, the simple average daily change in the Commodity Index was
0.039%, while the simple average daily change in the NAV of USCI over the same time period was 0.034%. The average daily difference
was (0.005)% (or (0.5) basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the Commodity
Index, the average error in daily tracking by the NAV was (2.900)%, meaning that over this time period USCI&rsquo;s tracking error
was within the plus or minus 10% range established as its benchmark tracking goal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Since the commencement of the offering
of CPER units to the public on November&nbsp;15, 2011 to January 31, 2013, the simple average daily change in the Copper Index
was 0.022%, while the simple average daily change in the NAV of CPER over the same time period was 0.027%. The average daily difference
was (0.004)% (or (0.4) basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the Copper
Index, the average error in daily tracking by the NAV was (2.015)%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Since the commencement of the offering
of USAG units to the public on April 13, 2012 to January 31, 2013, the simple average daily change in its index was 0.022%, while
the simple average daily change in the NAV of USAG over the same time period was 0.017%. The average daily difference was (0.005)%
or (0.5) basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the benchmark component
futures contracts, the average error in daily tracking by the NAV was 7.643%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Since the commencement of the offering
of USMI units to the public on June 19, 2012 to January 31, 2013, the simple average daily change in its index was 0.064%, while
the simple average daily change in the NAV of USMI over the same time period was 0.062%. The average daily difference was (0.002)%
or (0.2) basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the benchmark component
futures contracts, the average error in daily tracking by the NAV was (1.638)%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The table below shows the relationship
between the trading prices of the units of each of the Related Public Funds and the daily NAV of such fund, since inception through
January 31, 2013. The first row shows the average amount of the variation between the fund&rsquo;s closing market price and NAV,
computed on a daily basis since inception, while the second and third rows depict the maximum daily amount of the end of day premiums
and discounts to NAV since inception, on a percentage basis. The General Partner believes that maximum and minimum end of day premiums
and discounts typically occur because trading in units continues on the NYSE Arca until 4:00 p.m. New York time while regular trading
in the benchmark futures contract on the NYMEX ceases at 2:30&nbsp;p.m. New York time and the value of the relevant benchmark futures
contract, for purposes of determining its end of day NAV can be determined at that time. One known exception to this conclusion
were the premiums on trading in USNG units that occurred between July&nbsp;8, 2009 and September&nbsp;28, 2009, when USNG suspended
the issuance of Creation Baskets as a result of regulatory concerns relating to the size of USNG&rsquo;s positions in the natural
gas futures and cleared swap markets, and there was continued demand for such units and other similar natural gas futures linked
investments in the market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>USOF</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>USNG</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>US12OF</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UGA</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>USDHO</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>US12NG</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>USCI</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>USSO</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CPER</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 19%; text-indent: -12pt; padding-left: 12pt">Average Difference&#9;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 6%; text-align: right">(0.00</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 6%; text-align: right">0.39</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 6%; text-align: right">(0.04</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 6%; text-align: right">0.00</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 6%; text-align: right">(0.01</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 6%; text-align: right">0.01</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 6%; text-align: right">0.05</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 6%; text-align: right">0.00</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 6%; text-align: right">(0.05</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Max Premium %&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.88</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.37</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.11</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.29</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.75</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.68</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.03</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.08</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.31</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Max Discount %&#9;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.51</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.42</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9.72</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.50</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.85</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6.52</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.34</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.41</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5.45</TD><TD STYLE="text-align: left">)%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>USAG</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>USMI</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 28%; text-indent: -12pt; padding-left: 12pt">Average Difference</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">0.05</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">0.09</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Max Premium %</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.33</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.23</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Max Discount %</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.03</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9.28</TD><TD STYLE="text-align: left">)%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There are significant differences between investing in the Fund
and the Related Public Funds and investing directly in the futures market. The General Partner&rsquo;s results with USBO and the
Related Public Funds may not be representative of results that may be experienced with a fund directly investing in futures contracts
or other managed funds investing in futures contracts. Moreover, given the different investment objectives of USBO and the Related
Public Funds, the performance of USBO may not be representative of the results that may be experienced by the other Related Public
Funds. For more information on the performance of the Related Public Funds see the Performance Tables below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Performance of the Related Public Funds </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>USOF:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>COMPOSITE PERFORMANCE DATA FOR USOF </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Name of Commodity Pool: United States Oil
Fund, LP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Type of Commodity Pool: Exchange traded
security</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Inception of Trading: April 10, 2006</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Aggregate Subscriptions (from inception
through January 31, 2013): $35,347,704,404</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Total Net Assets as of January 31, 2013:
1,090,631,721</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">NAV per Unit as of January 31, 2013: $35.30</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Monthly Percentage Draw-down: Oct
2008 (31.57)%</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Peak-to-Valley Draw-down: June 08&nbsp;&mdash;&nbsp;Feb
09 (75.84)%</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Number of Unitholders (as of December 31,
2012): 54,915</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="26" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Rates of Return*</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Month</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2007</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2008</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2009</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2010</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2011</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2012</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2013</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 23%; text-indent: -12pt; padding-left: 12pt">January</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">(6.55</TD><TD STYLE="width: 1%; text-align: left">)%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">(4.00</TD><TD STYLE="width: 1%; text-align: left">)%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">(14.60</TD><TD STYLE="width: 1%; text-align: left">)%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">(8.78</TD><TD STYLE="width: 1%; text-align: left">)%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">(0.62</TD><TD STYLE="width: 1%; text-align: left">)%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">(0.60</TD><TD STYLE="width: 1%; text-align: left">)%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">5.63</TD><TD NOWRAP STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">February</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.63</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11.03</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6.55</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.62</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.21</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.25</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">March</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.61</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.63</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.23</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.61</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.78</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.27</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">April</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.26</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12.38</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.38</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.04</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.12</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.25</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">May</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.91</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12.80</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26.69</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(17.96</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10.43</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(17.83</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">June</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.06</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.90</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.16</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.47</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7.65</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.24</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">July</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.57</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11.72</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.30</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.57</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.24</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.14</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">August</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.95</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6.75</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.98</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9.47</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7.66</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.18</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">September</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12.11</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12.97</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.25</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.97</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11.08</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.82</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">October</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16.98</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(31.57</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.43</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.89</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17.32</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6.93</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">November</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.82</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(20.65</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.51</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.53</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.76</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.45</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">December</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.67</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(22.16</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.03</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.01</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.78</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.55</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Annual Rate of Return</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46.17</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(54.75</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14.14</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.49</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.31</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12.21</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.63</TD><TD NOWRAP STYLE="text-align: left">%**</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">*</TD><TD>The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">**</TD><TD>Through January 31, 2013</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: -24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">For a definition of Draw-down, please see
text below &ldquo;Composite Performance Data for USBO.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: -24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: -24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>USNG: </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>COMPOSITE PERFORMANCE DATA FOR USNG </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Name of Commodity Pool: United States Natural
Gas Fund, LP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Type of Commodity Pool: Exchange traded
security</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Inception of Trading: April 18, 2007</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Aggregate Subscriptions (from inception
through January 31, 2013): $16,540,421,723</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Total Net Assets as of January 31, 2013:
$1,102,092,306</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">NAV per Unit as of January 31, 2013: $18.79</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Monthly Percentage Draw-down: Jul
2008 (32.13)%</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Peak-to-Valley Draw-down: Jun 08-Mar
12 (96.81)%</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Number of Unitholders (as of December 31,
2012): 139,657</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="26" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Rates of Return*</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Month</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2007</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2008</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2009</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2010</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2011</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2012</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2013</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 23%; text-indent: -12pt; padding-left: 12pt">January</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">&mdash;</TD><TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">8.87</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">(21.49</TD><TD STYLE="width: 1%; text-align: left">)%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">(7.65</TD><TD STYLE="width: 1%; text-align: left">)%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">(0.17</TD><TD STYLE="width: 1%; text-align: left">)%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">(17.62</TD><TD STYLE="width: 1%; text-align: left">)%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">(0.42</TD><TD NOWRAP STYLE="width: 1%; text-align: left">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">February</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15.87</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5.47</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6.02</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10.02</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.49</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">March</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.90</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11.81</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(21.05</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.68</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(22.99</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">April</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.30</TD><TD NOWRAP STYLE="text-align: left">%**</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.42</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(13.92</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(.87</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.39</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.19</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">May</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.84</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.53</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.37</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.19</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.23</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.00</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">June</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(15.9</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13.29</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.63</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.14</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7.00</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14.36</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">July</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9.68</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(32.13</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8.70</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.43</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.90</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13.96</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">August</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(13.37</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(13.92</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(27.14</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(22.95</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.58</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(14.16</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">September</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12.28</TD><TD NOWRAP STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9.67</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26.03</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.13</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11.85</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13.32</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">October</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12.09</TD><TD NOWRAP STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12.34</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(13.31</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5.83</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">.33</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.78</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">November</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(16.16</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6.31</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11.86</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.37</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(13.40</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6.58</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">December</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">.75</TD><TD NOWRAP STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(14.32</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13.91</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.53</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(17.26</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7.09</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Annual Rate of Return</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(27.64</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(35.68</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(56.73</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(40.42</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(46.08</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(27.09</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.42</TD><TD NOWRAP STYLE="text-align: left">)%***</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">*</TD><TD>The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">**</TD><TD>Partial from April&nbsp;18, 2007</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">***</TD><TD>Through January 31, 2013</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">For a definition of Draw-down, please see
text below &ldquo;Composite Performance Data for USBO.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>US12OF: </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>COMPOSITE PERFORMANCE DATA FOR US12OF
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Name of Commodity Pool: United States 12
Month Oil Fund, LP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Type of Commodity Pool: Exchange traded
security</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Inception of Trading: December 6, 2007</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Aggregate Subscriptions (from inception
through January 31, 2013): $494,471,069</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Total Net Assets as of January 31, 2013:
$117,089,309</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">NAV per Unit as of January 31, 2013: $41.82</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Monthly Percentage Draw-down: Oct
2008 (29.59)%</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Peak-to-Valley Draw-down: June 08&nbsp;&mdash;
Feb 09 (66.97)%</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Number of Unitholders (as of December 31,
2012): 4,510</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="26" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Rates of Return*</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Month</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2007</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2008</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2009</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2010</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2011</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2012</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2013</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 23%; text-indent: -12pt; padding-left: 12pt">January</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">&mdash;</TD><TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">(2.03</TD><TD STYLE="width: 1%; text-align: left">)%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">(7.11</TD><TD STYLE="width: 1%; text-align: left">)%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">(8.40</TD><TD STYLE="width: 1%; text-align: left">)%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">3.38</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">0.92</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">5.05</TD><TD NOWRAP STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">February</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.48</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.34</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.73</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.89</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.71</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">March</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.66</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.22</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.16</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.30</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.03</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">April</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11.87</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.06</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.37</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.94</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.65</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">May</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15.47</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20.40</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(15.00</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8.91</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(16.94</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">June</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11.59</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.51</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.00</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6.43</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.04</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">July</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11.39</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.22</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.16</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.43</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.59</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">August</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6.35</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.85</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5.92</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8.42</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.54</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">September</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(13.12</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.92</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.02</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11.50</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.27</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">October</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(29.59</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.48</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.05</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15.03</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5.72</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">November</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(16.17</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.31</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.86</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.72</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.49</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">December</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.46</TD><TD NOWRAP STYLE="text-align: left">%**</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12.66</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.10</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.10</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.75</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.97</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Annual Rate of Return</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.46</TD><TD NOWRAP STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(42.39</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">29.23</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.29</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.28</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8.40</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.05</TD><TD NOWRAP STYLE="text-align: left">%***</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">*</TD><TD>The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">**</TD><TD>Partial from December&nbsp;6, 2007</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt; text-align: left">***</TD><TD STYLE="text-align: justify">Through January 31, 2013</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0">For a definition of Draw-down, please see text below &ldquo;Composite
Performance Data for USBO.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>UGA: </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>COMPOSITE PERFORMANCE DATA FOR UGA </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Name of Commodity Pool: United States Gasoline
Fund, LP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Type of Commodity Pool: Exchange traded
security</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Inception of Trading: February 26, 2008</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Aggregate Subscriptions (from inception
through January 31, 2013): $343,968,568</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Total Net Assets as of January 31, 2013:
$63,717,067</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">NAV per Unit as of January 31, 2013: $63.72</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Monthly Percentage Draw-down: Oct
2008 (38.48)%</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Peak-to-Valley Draw-down: June 08&nbsp;&mdash;
Dec 08 (69.02)%</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Number of Unitholders (as of December 31,
2012): 5,490</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 85%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.5in">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="22" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Rates of Return*</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Month</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2008</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2009</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2010</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2011</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2012</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2013</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 19%; text-indent: -12pt; padding-left: 12pt">January</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">&mdash;</TD><TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">16.23</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">(7.47</TD><TD STYLE="width: 1%; text-align: left">)%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">2.19</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">8.37</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">9.13</TD><TD NOWRAP STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">February</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.56</TD><TD NOWRAP STYLE="text-align: left">)%**</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.26</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.33</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.52</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.83</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">March</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.39</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.59</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.42</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.16</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.59</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">April</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.94</TD><TD NOWRAP STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.07</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.15</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.45</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.45</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">May</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15.60</TD><TD NOWRAP STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30.41</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(15.54</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9.21</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11.05</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">June</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.79</TD><TD NOWRAP STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.65</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.93</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.99</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.61</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">July</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12.79</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.24</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.95</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.67</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.60</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">August</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.88</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.71</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10.42</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.53</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13.02</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">September</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9.36</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.38</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.45</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11.02</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.96</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">October</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(38.48</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.96</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.19</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.90</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9.42</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">November</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(21.35</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.00</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.19</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.05</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.82</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">December</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(15.72</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.55</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11.33</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.49</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.27</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Annual Rate of Return</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(59.58</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">80.16</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15.52</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15.00</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20.72</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.13</TD><TD NOWRAP STYLE="text-align: left">%***</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">*</TD><TD>The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">**</TD><TD>Partial from February&nbsp;26, 2008</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">***</TD><TD>Through January 31, 2013</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">For a definition of Draw-down, please see
text below &ldquo;Composite Performance Data for USBO.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>USDHO: </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>COMPOSITE PERFORMANCE DATA FOR USDHO
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Name of Commodity Pool: United States Diesel-Heating
Oil Fund, LP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Type of Commodity Pool: Exchange traded
security</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Inception of Trading: April 9, 2008</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Aggregate Subscriptions (from inception
through January 31, 2013): $33,857,235</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Total Net Assets as of January 31, 2013:
$6,956,825</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">NAV per Unit as of January 31, 2013: $34.78</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Monthly Percentage Draw-down: Oct
2008 (28.63)%</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Peak-to-Valley Draw-down: June 08&nbsp;&mdash;&nbsp;Feb
09 (69.17)%</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Number of Unitholders (as of December 31,
2012): 666</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="22" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Rates of Return*</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Month</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2008</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2009</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2010</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2011</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2012</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2013</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 23%; text-indent: -12pt; padding-left: 12pt">January</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">&mdash;</TD><TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">0.05</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">(10.17</TD><TD STYLE="width: 1%; text-align: left">)%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">7.58</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">4.73</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">2.99</TD><TD NOWRAP STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">February</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11.34</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.78</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.98</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.62</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">March</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.73</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.42</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.45</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.46</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">April</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.84</TD><TD NOWRAP STYLE="text-align: left">%**</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.85</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.13</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.75</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.17</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">May</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15.93</TD><TD NOWRAP STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23.13</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(14.14</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7.17</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(15.28</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">June</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.91</TD><TD NOWRAP STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.55</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.40</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.01</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.03</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">July</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12.18</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.39</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.48</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.68</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.98</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">August</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8.41</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.71</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5.88</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.85</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11.24</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">September</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9.77</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.48</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12.75</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10.18</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.68</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">October</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(28.63</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.60</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.20</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.10</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.76</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">November</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(18.38</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.19</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.97</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.36</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.38</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">December</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(17.80</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.23</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.75</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.12</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.94</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Annual Rate of Return</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(56.12</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25.52</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.28</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.96</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.99</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.99</TD><TD NOWRAP STYLE="text-align: left">%***</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">*</TD><TD>The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">**</TD><TD>Partial from April&nbsp;9, 2008</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">***</TD><TD>Through January 31, 2013</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">For a definition of Draw-down, please see
text below &ldquo;Composite Performance Data for USBO.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>US12NG </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>COMPOSITE PERFORMANCE DATA FOR US12NG
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Name of Commodity Pool: United States 12
Month Natural Gas Fund, LP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Type of Commodity Pool: Exchange traded
security</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Inception of Trading: November 18, 2009</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Aggregate Subscriptions (from inception
through January 31, 2013): $118,127,314</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Total Net Assets as of January 31, 2013:
$46,628,788</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">NAV per Unit as of January 31, 2013: $17.27</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Monthly Percentage Draw-down: Mar
2010 (15.47)%</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Peak-to-Valley Draw-down: Dec 09-April
12 (69.56)%</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Number of Unitholders (as of December 31,
2012): 3,546</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="18" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Rates of Return*</B></P> </TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Month</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2009</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2010</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2011</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2012</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2013</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 23%; text-indent: -12pt; padding-left: 12pt">January</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">(5.93</TD><TD STYLE="width: 1%; text-align: left">)%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">(0.68</TD><TD STYLE="width: 1%; text-align: left">)%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">(12.16</TD><TD STYLE="width: 1%; text-align: left">)%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; text-align: right">0.23</TD><TD NOWRAP STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">February</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5.18</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6.49</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.32</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">March</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(15.47</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.32</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11.85</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">April</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.07</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.53</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.00</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">May</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.11</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.23</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.06</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">June</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.27</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6.11</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.11</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">July</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.05</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5.28</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.62</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">August</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(13.53</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.43</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9.39</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">September</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6.23</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8.12</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11.26</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">October</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.78</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.72</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.55</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">November</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.02</TD><TD NOWRAP STYLE="text-align: left">)%**</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.92</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10.27</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5.22</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">December</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.56</TD><TD NOWRAP STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.88</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(13.92</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.17</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Annual Rate of Return</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.54</TD><TD NOWRAP STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(34.83</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(39.47</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(18.76</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.23</TD><TD NOWRAP STYLE="text-align: left">%***</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">*</TD><TD>The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">**</TD><TD>Partial from November&nbsp;18, 2009</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">***&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Through January 31, 2013</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">For a definition of Draw-down, please see
text below &ldquo;Composite Performance Data for USBO.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>USAG: </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>COMPOSITE PERFORMANCE DATA FOR USAG </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Name of Commodity Pool: United States Agricultural
Index Fund</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Type of Commodity Pool: Exchange traded
security</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Inception of Trading: April 13, 2012</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Aggregate Subscriptions (from inception
through January 31, 2013): $2,500,000</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Total Net Assets as of January 31, 2013:
$2,567,382</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">NAV per Unit as of January 31, 2013: $25.67</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Monthly Percentage Draw-down: May
12 (4.88)%</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Peak-to-Valley Draw-down: Aug 12-
Dec 12 (9.27%)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Number of Unitholders (as of December&nbsp;31,
2012): 87</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Rates of Return*</B></P> </TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Month</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2012</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2013</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%; text-indent: -12pt; padding-left: 12pt">January</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">0.43</TD><TD NOWRAP STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">February</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">March</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">April</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.68</TD><TD NOWRAP STYLE="text-align: left">)%**</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">May</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.88</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">June</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.20</TD><TD NOWRAP STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">July</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.07</TD><TD NOWRAP STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">August</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.25</TD><TD NOWRAP STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">September</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.80</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">October</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.97</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">November</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.38</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">December</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.44</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Annual Rate of Return</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.12</TD><TD NOWRAP STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.43</TD><TD NOWRAP STYLE="text-align: left">%***</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">*</TD><TD>The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">**</TD><TD>Partial from April 13, 2012</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt; text-align: left">***</TD><TD STYLE="text-align: justify">Through January 31, 2013</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">For a definition of Draw-down, please see
text below &ldquo;Composite Performance Data for USBO.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>CPER: </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>COMPOSITE PERFORMANCE DATA FOR CPER </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Name of Commodity Pool: United States Copper
Index Fund</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Type of Commodity Pool: Exchange traded
security</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Inception of Trading: November 15, 2011</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Aggregate Subscriptions (from inception
through January 31, 2013): $2,500,000</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Total Net Assets as of January 31, 2013:
$2,601,090</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">NAV per Unit as of January 31, 2013: $26.01</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Monthly Percentage Draw-down: May
12 (11.91)% &#9;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Peak-to-Valley Draw-down: Feb 12-May
12 (13.60)%</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Number of Unitholders (as of December&nbsp;31,
2012): 161</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Rates of Return*</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Month</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2011</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2012</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2013</B></P> </TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 61%; text-indent: -12pt; padding-left: 12pt">January</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&mdash;</TD><TD NOWRAP STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">10.13</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">2.28</TD><TD NOWRAP STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">February</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.00</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">March</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.49</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">April</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.44</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">May</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11.91</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">June</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.49</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">July</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.12</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">August</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.79</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">September</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.45</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">October</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6.43</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">November</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.80</TD><TD NOWRAP STYLE="text-align: left">%**</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.29</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">December</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.85</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.04</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD NOWRAP STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Annual Rate of Return</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.12</TD><TD NOWRAP STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.92</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.28</TD><TD NOWRAP STYLE="text-align: left">%***</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">*</TD><TD>The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">**</TD><TD>Partial from November 15, 2011.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">***</TD><TD>Through January 31, 2013</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">For a definition of Draw-down, please see
the text below &ldquo;Composite Performance Data for USBO.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>USSO: </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>COMPOSITE PERFORMANCE DATA FOR USSO </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Name of Commodity Pool: United States Short
Oil Fund, LP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Type of Commodity Pool: Exchange traded
security</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Inception of Trading: September 24, 2009</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Aggregate Subscriptions (from inception
through January 31, 2013): $79,889,217</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Total Net Assets as of January 31, 2013:
$14,318,799</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">NAV per Unit as of January 31, 2013: $35.80</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Monthly Percentage Draw-down: Oct
11 (16.00)%</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Peak-to-Valley Draw-down: Aug&nbsp;10&nbsp;&mdash;&nbsp;Feb&nbsp;12&nbsp;(33.97)%</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Number of Unitholders (as of December 31,
2012): 636</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="18" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Rates of Return*</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Month</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2009</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2010</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 35%; text-indent: -12pt; padding-left: 12pt">January</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">9.05</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">(0.64</TD><TD STYLE="width: 1%; text-align: left">)%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">0.11</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">(5.52</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">February</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8.94</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.94</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8.09</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">March</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.92</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8.89</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.88</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">April</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.50</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6.27</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.62</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">May</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20.18</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.28</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20.85</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">June</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.42</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.21</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.61</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">July</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4.17</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.30</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.97</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">August</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.61</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.24</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8.92</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">September</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.90</TD><TD NOWRAP STYLE="text-align: left">)%**</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8.75</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.71</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.59</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">October</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8.65</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.59</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(16.00</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.56</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">November</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.25</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.18</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7.78</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.25</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">December</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.57</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7.74</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.03</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.82</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Annual Rate of Return</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12.02</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8.12</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10.54</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.78</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5.52</TD><TD NOWRAP STYLE="text-align: left">)%***</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">*</TD><TD>The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">**</TD><TD>Partial from September&nbsp;24, 2009</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">***</TD><TD>Through January 31, 2013</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">For a definition of Draw-down, please see
text below &ldquo;Composite Performance Data for USBO.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>USMI: </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>COMPOSITE PERFORMANCE DATA FOR USMI </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Name of Commodity Pool: United States Metals
Index Fund</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Type of Commodity Pool: Exchange traded
security</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Inception of Trading: November 15, 2011</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Aggregate Subscriptions (from inception
through January 31, 2013): $4,909,773</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Total Net Assets as of January 31, 2013:
$2,730,343</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">NAV per Unit as of January 31, 2013: $27.30</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Monthly Percentage Draw-down: Oct
12 (7.74)%</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Peak-to-Valley Draw-down: Sep 12-
Oct 12 (7.74%)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Number of Unitholders (as of December&nbsp;31,
2012): 18</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Rates of Return*</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Month</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 74%; text-indent: -12pt; padding-left: 12pt">January</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">3.14</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">February</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">March</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">April</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">May</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">June</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.20</TD><TD NOWRAP STYLE="text-align: left">)%**</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">July</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.46</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">August</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.23</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">September</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.99</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">October</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7.74</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">November</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.17</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">December</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.34</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Annual Rate of Return</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.75</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.14</TD><TD NOWRAP STYLE="text-align: left">%***</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">*</TD><TD>The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">**</TD><TD>Partial from June 12, 2012</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">***</TD><TD>Through January 31, 2013</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">For a definition of Draw-down, please see
the text below &ldquo;Composite Performance Data for USBO.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>USCI Performance: </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>COMPOSITE PERFORMANCE DATA FOR USCI</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Name of Commodity Pool: United&nbsp;States&nbsp;Commodity&nbsp;Index&nbsp;Fund</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Type of Commodity Pool: Exchange traded
security</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Inception of Trading: August 10, 2010</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Aggregate Subscriptions (from inception
through January 31, 2013): $435,625,033</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Total Net Assets as of January 31, 2013:
$516,178,758</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">NAV per Unit as of January 31, 2013: $60.02</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Monthly Percentage Draw-down: Sept
11 (11.69)%</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Worst Peak-to-Valley Draw-down: April 11
&mdash; May 12 (21.60)%</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Number of Unitholders (as of December 31,
2012): 15,335</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Rates of Return*</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Month</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2010</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2011</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 48%; padding-left: 0.25pt">January</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">4.01</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">4.45</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; text-align: right">2.69</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">February</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.27</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.01</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">March</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.14</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.49</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>April</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.89</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.62</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">May</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5.77</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7.76</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">June</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5.03</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.35</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">July</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.52</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.52</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">August</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.02</TD><TD NOWRAP STYLE="text-align: left">)%**</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.33</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.34</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">September</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.36</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11.69</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.18</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">October</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.31</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.08</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.44</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">November</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.76</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.16</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.89</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 12pt">December</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.93</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3.72</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.21</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Annual Rate of Return</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28.74</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9.17</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.03</TD><TD STYLE="text-align: left">)%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.69</TD><TD NOWRAP STYLE="text-align: left">%***</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">*</TD><TD>The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">**</TD><TD>Partial from August&nbsp;10, 2010</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">***</TD><TD>Through January 31, 2013</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">For a definition
of Draw-down, please see the text below &ldquo;Composite Performance Data for USBO.&rdquo; </FONT>&#9;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Other Related Commodity Trading and Investment Management
Experience </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Until December&nbsp;31, 2009, Ameristock
Corporation was an affiliate of the General Partner. Ameristock Corporation is a California-based registered investment advisor
registered under the Investment Advisors Act of 1940, as amended, that has sponsored and provided portfolio management services
to mutual funds from 1995 until January 2013. Ameristock Corporation was the investment adviser to the Ameristock Mutual Fund,
Inc., a mutual fund registered under the Investment Company Act of 1940 focused on large cap U.S. equities that, as of December
31, 2012, had $126,879,540 in assets. On January 11, 2013, the Ameristock Mutual Fund, Inc. merged with and into the Drexel Hamilton
Centre American Equity Fund, a series of Drexel Hamilton Mutual Funds. Drexel Hamilton Mutual Funds is not affiliated with Ameristock
Corporation, the Ameristock Mutual Fund, Inc. or the General Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Ameristock Corporation was also the investment
advisor to the Ameristock ETF Trust, an open-end management investment company registered under the 1940 Act that consisted of
five separate investment portfolios, each of which sought investment results, before fees and expenses, that corresponded generally
to the price and yield performance of a particular U.S. Treasury securities index owned and compiled by Ryan Holdings LLC and Ryan
ALM, Inc. The Ameristock ETF Trust has liquidated each of its investment portfolios and has wound up its affairs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>How Does USBO Operate? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The net assets of USBO consist primarily
of investments in futures contracts for Brent crude oil, but may also consist of investment contracts for other types of crude
oil, natural gas, gasoline, heating oil and other petroleum-based fuels that are traded on the ICE Futures Exchange, NYMEX, or
other U.S. and foreign exchanges (such futures contracts are collectively referred to herein as &ldquo;Futures Contracts&rdquo;),
and to a lesser extent, in order to comply with regulatory requirements or in view of market conditions, other crude oil-related
investments such as cash-settled options on Futures Contracts, forward contracts for crude oil, cleared swap contracts and non-exchange
traded (&ldquo;over-the-counter&rdquo;) transactions that are based on the price of crude oil and other petroleum-based fuels,
Futures Contracts and indices based on the foregoing (collectively, &ldquo;Other Crude Oil-Related Investments&rdquo;). For convenience
and unless otherwise specified, Futures Contracts and Other Crude Oil-Related Investments collectively are referred to as &ldquo;Crude
Oil Interests&rdquo; in this prospectus. USBO invests substantially the entire amount of its assets in Crude Oil Interests while
supporting such investments by holding the amounts of its margin, collateral and other requirements relating to these obligations
in Treasuries, cash and cash equivalents. The daily holdings of USBO are available on USBO&rsquo;s website at www.unitedstatesbrentoilfund.com.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO invests in Crude Oil Interests to
the fullest extent possible without being leveraged or unable to satisfy its current or potential margin or collateral obligations
with respect to its investments in Futures Contracts and Other Crude Oil-Related Investments. The primary focus of the General
Partner is the investment in Futures Contracts and the management of USBO&rsquo;s investments in short-term obligations of the
United States of two years or less (&ldquo;Treasuries&rdquo;), cash and/or cash equivalents for margining purposes and as collateral.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The investment objective of USBO is for
the daily changes in percentage terms of its units&rsquo; NAV to reflect the daily changes in percentage terms of the spot price
of Brent crude oil as measured by the daily changes in the price of the futures contract on Brent crude oil as traded on the ICE
Futures Exchange that is the near month contract to expire, except when the near month contract is within two weeks of expiration,
in which case the futures contract will be the next month contract to expire (the &ldquo;Benchmark Futures Contract&rdquo;), less
USBO&rsquo;s expenses. It is not the intent of USBO to be operated in a fashion such that its NAV will equal, in dollar terms,
the spot price of crude oil or any particular futures contract based on crude oil. USBO seeks to achieve its investment objective
by investing in a combination of Futures Contracts and Other Crude Oil-Related Investments such that the daily changes in its NAV,
measured in percentage terms, will closely track the daily changes in the price of the Benchmark Futures Contract, also measured
in percentage terms. It is not the intent of USBO to be operated in a fashion such that its NAV will reflect the percentage change
of the price of any particular futures contract as measured over a time period greater than one day. The General Partner believes
that it is not practical to manage the portfolio to achieve such an investment goal when investing in listed crude oil Futures
Contracts and other Crude Oil-Related Investments. USBO may invest in interests other than the Benchmark Futures Contract to comply
with accountability levels and position limits. For a detailed discussion of accountability levels and position limits, see &ldquo;What
are Futures Contracts?&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">As a specific benchmark, the General Partner
endeavors to place USBO&rsquo;s trades in Futures Contracts and Other Crude Oil-Related Investments and otherwise manage USBO&rsquo;s
investments so that &ldquo;A&rdquo; will be within plus/minus 10 percent of &ldquo;B&rdquo;, where:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>A is the average daily change in USBO&rsquo;s NAV for any period of 30 successive valuation days, <I>i.e.</I> , any NYSE Arca
trading day as of which USBO calculates its NAV; and</TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>B is the average daily change in the price of the Benchmark Futures Contract over the same period.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner believes that market
arbitrage opportunities cause daily changes in USBO&rsquo;s unit price on the NYSE Arca to closely track daily changes in USBO&rsquo;s
NAV per unit. The General Partner further believes that the daily changes in USBO&rsquo;s NAV in percentage terms closely track
the daily changes in percentage terms in the Benchmark Futures Contract, less USBO&rsquo;s expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The following two graphs demonstrate the
correlation between the daily changes in the NAV of USBO and the daily changes in the Benchmark Futures Contract both since the
initial public offering of USBO&rsquo;s units on June&nbsp;2, 2010 through December 31, 2012 and during the last thirty valuation
days ended December 31, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><img src="tpg50.jpg"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>* PAST PERFORMANCE IS NOT NECESSARILY
INDICATIVE OF FUTURE RESULTS </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><img src="tpg50a.jpg"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>* PAST PERFORMANCE IS NOT NECESSARILY
INDICATIVE OF FUTURE RESULTS </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">An investment in the units provides a means
for diversifying an investor&rsquo;s portfolio or hedging exposure to changes in Brent crude oil prices. An investment in the units
allows both retail and institutional investors to easily gain this exposure to the Brent crude oil market in a transparent, cost-effective
manner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The expected correlation of the price of
USBO&rsquo;s units, USBO&rsquo;s NAV and the price of the Benchmark Futures Contract is illustrated in the following diagram:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><img src="tpg51.jpg"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner employs a &ldquo;neutral&rdquo;
investment strategy intended to track the changes in the price of the Benchmark Futures Contract regardless of whether the price
goes up or goes down. USBO&rsquo;s &ldquo;neutral&rdquo; investment strategy is designed to permit investors generally to purchase
and sell USBO&rsquo;s units for the purpose of investing indirectly in Brent crude oil in a cost-effective manner, and/or to permit
participants in the crude oil or other industries to hedge the risk of losses in their Brent crude oil-related transactions. Accordingly,
depending on the investment objective of an individual investor, the risks generally associated with taking positions in Brent
crude oil and/or the risks involved in hedging may exist. In addition, an investment in USBO involves the risk that the changes
in the price of USBO&rsquo;s units will not accurately track the changes in the price of the Benchmark Futures Contract, and that
changes in the Benchmark Futures Contract will not closely correlate with changes in the spot price of Brent crude oil.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Term Structure of Brent Crude Oil Futures
Prices and the Impact on Total Returns.&nbsp;</I>Several factors determine the total return from investing in a futures contract
position.&nbsp;One factor that impacts the total return that will result&nbsp;from investing in near month futures contracts and
&ldquo;rolling&rdquo; those contracts forward each month is the price relationship between the current near month contract and
the next month contract.&nbsp;For example, if the price of the near month contract is higher than the next month contract (a situation
referred to as &ldquo;backwardation&rdquo; in the futures market), then absent any other change there is a tendency for the price
of a next month contract to rise in value as it becomes the near month contract and approaches expiration.&nbsp;Conversely, if
the price of a near month contract is lower than the next month contract (a situation referred to as &ldquo;contango&rdquo; in
the futures market), then absent any other change there is a tendency for the price of a next month contract to decline in value
as it becomes the near month contract and approaches expiration.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">As an example, assume that the price of
Brent crude oil for immediate delivery (the &ldquo;spot&rdquo; price), was $50 per barrel, and the value of a position in the near
month futures contract was also $50.&nbsp;Over time, the price of the barrel of Brent crude oil will fluctuate&nbsp;based on a
number of market factors, including demand for oil relative to its supply.&nbsp;The value of the near month contract will likewise
fluctuate&nbsp;in reaction to a number of market factors.&nbsp;If investors seek to maintain their position in a near month contract
and not take delivery of the oil, every month they must sell their current near month contract as it approaches expiration and
invest in the next month contract.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">If the futures market is in backwardation,
<I>e.g.</I>, when the expected price of Brent crude oil in the future would be less, the investor would be buying a next month
contract for a lower price than the current near month contract. Using the $50 per barrel price above to represent the front month
price, the price of the next month contract could be $49 per barrel, that is, 2% cheaper than the front month contract. Hypothetically,
and assuming no other changes to either prevailing Brent crude oil prices or the price relationship between the spot price, the
near month contract and the next month contract (and ignoring the impact of commission costs and the income earned on cash and/or
cash equivalents), the value of the $49 next month contract would rise as it approaches expiration and becomes the new near month
contract with a price of $50. In this example, the value of an investment in the second month contract would tend to rise faster
than the spot price of Brent crude oil, or fall slower.&nbsp;As a result, it would be possible in this hypothetical example for
the spot price of Brent crude oil to have risen 10% after some period of time, while the value of the investment in the second
month futures contract would have risen 12%, assuming backwardation is large enough or enough time has elapsed.&nbsp;Similarly,
the spot price of Brent crude oil could have fallen 10% while the value of an investment in the futures contract could have fallen
only 8%.&nbsp;Over time, if backwardation remained constant, the difference would continue to increase.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">If the futures market is in contango, the
investor would be buying a next month contract for a higher price than the current near month contract.&nbsp;Using again the $50
per barrel price above to represent the front month price, the price of the next month contract could be $51 per barrel, that is,
2% more expensive than the front month contract. Hypothetically, and assuming no other changes to either prevailing Brent crude
oil prices or the price relationship between the spot price, the near month contract and the next month contract (and ignoring
the impact of commission costs and the income earned on cash and/or cash equivalents), the value of the next month contract would
fall as it approaches expiration and becomes the new near month contract with a price of $50.&nbsp;In this example, it would mean
that the value of an investment in the second month would tend to rise slower than the spot price of Brent crude oil, or fall faster.&nbsp;As
a result, it would be possible in this hypothetical example for the spot price of&nbsp;Brent crude oil to have risen 10% after
some period of time, while the value of the investment in the second month futures contract will have risen only 8%, assuming contango
is large enough or enough time has elapsed.&nbsp;Similarly, the spot price of Brent crude oil could have fallen 10% while the value
of an investment in the second month futures contract could have fallen 12%.&nbsp;Over time, if contango remained constant, the
difference would continue to increase.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The chart below compares the price of the
near month contract to the average price of the near 12-month contracts over the last 10 years (2002-2011). When the price of the
near month contract is higher than the average price of the near 12 month contracts, the market would be described as being in
backwardation. When the price of the near month contract is lower than the average price of the near 12 month contracts, the market
would be described as being in contango. Although the prices of the near month contract and the average price of the near 12 month
contracts do tend to move up or down together, it can be seen that at times the near month prices are clearly higher than the average
price of the near 12 month contracts (backwardation), and other times they are below the average price of the near 12 month contracts
(contango).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><img src="tpg53.jpg"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>PAST PERFORMANCE IS NOT NECESSARILY
INDICATIVE OF FUTURE RESULTS </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">An alternative way to view the same data
is to subtract from the dollar price of the near month contract the average dollar price of the near 12-months contracts for Brent
crude oil.&nbsp;If the resulting number is a positive number, then the near month price is higher than the average price of the
near 12-months contracts and the market could be described as being in backwardation.&nbsp;If the resulting number is a negative
number, then the near month price is lower than the average price of the near 12-months contracts and the market could be described
as being in contango.&nbsp;The chart below shows the results from subtracting the average dollar price of the near 12-month contracts
from the near month price for the 10 year period between 2002 and 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><img src="tpg54.jpg"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>PAST PERFORMANCE IS NOT NECESSARILY
INDICATIVE OF FUTURE RESULTS </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Historically, the crude oil futures markets
have experienced periods of contango and backwardation, with backwardation being in place more often than contango. During 2006
and the first half of 2007, these markets experienced contango. However, starting early in the third quarter of 2007, the crude
oil futures market moved into backwardation. The crude oil markets remained in backwardation until late in the second quarter of
2008 when they moved into contango. The crude oil markets remained in contango until late in the third quarter of 2008, when the
markets moved into backwardation. Early in the fourth quarter of 2008, the crude oil market moved back into contango and remained
in contango for the balance of 2008. Throughout 2009, the crude oil market remained in contango. During parts of January and February
2009, the level of contango was unusually steep. Crude oil inventories, which reached historic levels in January and February 2009
and which appeared to be the primary cause of the steep level of contango, began to drop in March 2009 and continued to drop for
the balance of 2009 and the beginning of 2010. The crude oil futures market remained in contango through 2010 and 2011. The Brent
crude oil futures market experiences the same effects of contango and backwardation as the United States crude oil futures market,
but the Brent crude oil futures market has not historically experienced the same level of steepness in contango and backwardation
as the United States crude oil futures market. As of December 31, 2012, U.S. crude oil markets remained mildly in contango while
the market for Brent crude oil was mildly in backwardation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Periods of contango or backwardation do
not materially impact USBO&rsquo;s investment objective of having the percentage changes in its per unit NAV track the daily percentage
changes in the price of the Benchmark Futures Contract since the impact of backwardation and contango tend to equally impact the
daily percentage changes in price of both USBO&rsquo;s units and the Benchmark Futures Contract. It is impossible to predict with
any degree of certainty whether backwardation or contango will occur in the future. It is likely that both conditions will occur
during different periods.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Brent Crude Oil Market. During the year
ended December 31, 2012, Brent crude oil prices were impacted by several factors. On the consumption side, demand increased inside
and outside the United States as global economic growth, including emerging economies such as China and India, showed signs of
slowing economic growth. Europe in particular showed signs of weakness as the ongoing financial and banking crisis raised concerns
during the year ended December 31, 2012. On the supply side, efforts to reduce production by OPEC to more closely match global
consumption were partially successful. In the summer of 2011, production had been disrupted by political unrest in the Middle East,
particularly Libya, which reduced global supply by approximately 1.8 million barrels per day. A partial resolution of the Libyan
situation has reduced concerns regarding the global supply of Brent crude oil. However, continuing concerns about the political
standoff with Iran have left the market subject to bouts of heightened volatility as OPEC&rsquo;s ability to replace Iranian oil
currently subject to embargo is not unlimited. Brent crude oil prices finished 2012 approximately 3.47% higher than at the beginning
of the year, as the global economy continues to adjust to periods of slow recovery and economic growth. the General Partner believes
that should the global economic situation cease to improve, or decline, there is a meaningful possibility that crude oil prices
could further retreat from their current levels, while any military actions involving Iran would likely have the opposite effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Brent Crude Oil Price Movements in Comparison
to Other Energy Commodities and Investment Categories. the General Partner believes that investors frequently measure the degree
to which prices or total returns of one investment or asset class move up or down in value in concert with another investment or
asset class. Statistically, such a measure is usually done by measuring the correlation of the price movements of the two different
investments or asset classes over some period of time. The correlation is scaled between 1 and -1, where 1 indicates that the two
investment options move up or down in price or value together, known as &ldquo;positive correlation,&rdquo; and -1 indicates that
they move in completely opposite directions, known as &ldquo;negative correlation.&rdquo; A correlation of 0 would mean that the
movements of the two are neither positively nor negatively correlated, known as &ldquo;non-correlation.&rdquo; That is, the investment
options sometimes move up and down together and other times move in opposite directions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">For the ten year time period between 2003
and 2012, the table below compares the monthly movements of Brent crude oil prices versus the monthly movements of the prices of
several other energy commodities, such as natural gas, diesel-heating oil, and unleaded gasoline, as well as several major non-commodity
investment asset classes, such as large cap U.S. equities, U.S. government bonds and global equities. It can be seen that over
this particular time period, the movement of Brent crude oil on a monthly basis was not strongly correlated, positively or negatively,
with the movements of large cap U.S. equities or U.S. government bonds. However, movements in Brent crude oil had a strong positive
correlation to movements in unleaded gasoline and U.S. West Texas Intermediate (WTI) crude oil. Brent crude oil was also positively,
yet mildly correlated with global equities and diesel-heating oil.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">December&nbsp;31, 2003-2012 Correlation Matrix</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Large&nbsp; Cap<BR> U.S.<BR> Equities<BR> (S&amp;P&nbsp;500)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">U.S.<BR> Gov&rsquo;t.<BR> Bonds<BR> (EFFAS<BR> U.S.<BR> Gov&rsquo;t.<BR> Bond<BR> Index)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Global<BR> Equities<BR> (FTSE<BR> World<BR> Index)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Crude&nbsp;Oil<BR> (WTI)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Unleaded<BR> Gasoline</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Diesel-Heating<BR> Oil</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Brent<BR> Oil</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 30%; text-align: left; text-indent: -0.1in; padding-left: 0.1in">Large Cap U.S. Equities (S&amp;P 500)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">1.000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">(0.275</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">0.965</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">0.346</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">0.227</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">0.290</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; font-weight: bold; text-align: right">0.339</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">U.S. Gov&rsquo;t. Bonds (EFFAS U.S. Gov&rsquo;t. Bond Index)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.260</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.217</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.233</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.162</TD><TD STYLE="text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(0.227</TD><TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Global Equities (FTSE World Index)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.423</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.278</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.363</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">0.421</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Crude Oil (WTI)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.734</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.831</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">0.950</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Unleaded Gasoline</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.721</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">0.775</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.1in; padding-left: 0.1in">Diesel-Heating oil</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">0.342</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -0.1in; padding-left: 0.1in">Brent Oil</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">1.000</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Source: Bloomberg, NYMEX</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>PAST PERFORMANCE IS NOT NECESSARILY
INDICATIVE OF FUTURE RESULTS</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The table below covers a more recent, but
much shorter, range of dates than the above table.&nbsp; Over the one-year period ended December&nbsp;31, 2012, Brent crude oil
had a positive correlation with West Texas Intermediate Crude Oil and unleaded gasoline.&nbsp; The correlation between Brent crude
oil and both large cap U.S. equities and global equities, which had been essentially non-correlated over the ten-year period ended
December&nbsp;31, 2012, displayed results that indicated that they had a strong positive correlation over this shorter time period.
Finally, the results showed that Brent crude oil, Heating Oil and U.S. government bonds, which had essentially been non-correlated
for the ten-year period ended December&nbsp;31, 2012, were negatively correlated over this more recent time period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 8pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">Year&nbsp;Ended&nbsp;December&nbsp;31,&nbsp;2012&nbsp;Correlation&nbsp;Matrix</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">Large&nbsp; Cap<BR> U.S.<BR> Equities<BR> (S&amp;P&nbsp;500)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">U.S.<BR> Gov&rsquo;t.<BR> Bonds<BR> (EFFAS<BR> U.S.<BR> Gov&rsquo;t.<BR> Bond<BR> Index)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">Global<BR> Equities<BR> (FTSE<BR> World<BR> Index)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">Crude&nbsp;Oil<BR> (WTI)</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">Unleaded<BR> Gasoline</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">Diesel-Heating<BR> Oil</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD><TD NOWRAP STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-weight: bold; border-bottom: Black 1pt solid">Brent<BR> Oil</TD><TD NOWRAP STYLE="padding-bottom: 1pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 30%; font-weight: bold; text-align: left">Large Cap U.S. Equities (S&amp;P 500)</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; font-weight: bold; text-align: right">1.000</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; font-weight: bold; text-align: right">(0.652</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; font-weight: bold; text-align: right">0.943</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; font-weight: bold; text-align: right">0.639</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; font-weight: bold; text-align: right">0.735</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; font-weight: bold; text-align: right">0.733</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; font-weight: bold; text-align: right">0.691</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">U.S. Gov&rsquo;t. Bonds (EFFAS U.S. Gov&rsquo;t. Bond Index)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">1.000</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(0.652</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(0.350</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(0.361</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(0.411</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(0.421</TD><TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-align: left">Global Equities (FTSE World Index)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">1.000</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">0.689</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">0.567</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">0.763</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">0.717</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Crude Oil</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">1.000</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">0.515</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">0.890</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">0.909</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-align: left">Unleaded Gasoline</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">1.000</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">0.598</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">0.622</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold">Diesel-Heating oil</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">1.000</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(0.227</TD><TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-weight: bold; text-align: left">Brent Oil</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">1.000</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border-bottom: windowtext 1pt solid"><FONT STYLE="font-size: 10pt"><B>Source: Bloomberg, NYMEX </B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>PAST PERFORMANCE IS NOT NECESSARILY
INDICATIVE OF FUTURE RESULTS</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;<B> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Investors are cautioned that the historical
price relationships between Brent crude oil and various other energy commodities, as well as other investment asset classes, as
measured by correlation may not be reliable predictors of future price movements and correlation results.&nbsp;The results pictured
above would have been different if a different range of dates had been selected.&nbsp;the General Partner believes that Brent crude
oil has historically not demonstrated a strong correlation with equities or bonds over long periods of time.&nbsp; However, the
General Partner also believes that in the future it is possible that Brent crude oil could have long term correlation results that
indicate prices of Brent crude oil more closely track the movements of equities or bonds.&nbsp; In addition, the General Partner
believes that, when measured over time periods shorter than ten years, there will always be some periods where the correlation
of Brent crude oil to equities and bonds will be either more strongly positively correlated or more strongly negatively correlated
than the long term historical results suggest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The&nbsp;correlations&nbsp;between Brent
crude oil, WTI Crude Oil, diesel-heating oil and gasoline&nbsp;are relevant because the General Partner endeavors to invest USBO&rsquo;s
assets in Futures Contracts and Other Crude Oil-Related Investments so that daily changes in percentage terms in USBO&rsquo;s per
unit NAV correlate as closely as possible with daily changes in percentage terms in the price of the Benchmark Futures Contract.&nbsp;
If certain other fuel-based commodity futures contracts&nbsp;do not closely correlate with the Futures Contract, then their use
could lead to greater tracking error.&nbsp; As noted above, the General Partner also believes that the changes in percentage terms
in the price of the Benchmark Futures Contract will closely correlate with changes in percentage terms in the spot price of Brent
crude oil.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What Is USBO&rsquo;s Investment Strategy? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In managing USBO&rsquo;s assets the General
Partner does not use a technical trading system that issues buy and sell orders. The General Partner instead employs a quantitative
methodology whereby each time a Creation Basket is sold, the General Partner purchases Crude Oil Interests, such as the Benchmark
Futures Contract, that have an aggregate market value that approximates the amount of Treasuries and/or cash received upon the
issuance of the Creation Basket.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">As an example, assume that a Creation Basket
is sold by USBO, and that USBO&rsquo;s closing NAV per unit is $50. In that case, USBO would receive $2,500,000 in proceeds from
the sale of the Creation Basket ($50.00 NAV per unit multiplied by 50,000 units, and excluding the Creation Basket fee). If one
were to assume further that the General Partner wants to invest the entire proceeds from the Creation Basket in the Benchmark Futures
Contract and that the market value of the Benchmark Futures Contract is $105,000, USBO would be unable to buy the exact number
of Benchmark Futures Contracts with an aggregate market value equal to $2,500,000. Instead, USBO would be able to purchase 23 Benchmark
Futures Contracts with an aggregate market value of $2,415,000. Assuming a margin requirement equal to 10% of the value of the
Benchmark Futures Contract, USBO would be required to deposit $241,500 in Treasuries and cash and/or cash equivalents with the
futures commission merchant through which the Benchmark Futures Contracts were purchased. The remainder of the proceeds from the
sale of the Creation Basket, $2,258,500, would remain invested in cash, cash equivalents and Treasuries as determined by the General
Partner from time to time based on factors such as potential calls for margin or anticipated redemptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The specific Futures Contracts purchased
depend on various factors, including a judgment by the General Partner as to the appropriate diversification of USBO&rsquo;s investments
in Futures Contracts with respect to the month of expiration, and the prevailing price volatility of particular contracts. While
the General Partner has made significant investments in ICE Futures Exchange Futures Contracts, for various reasons, including
the ability to enter into the precise amount of exposure to the crude oil market, position limits or other regulatory requirements
limiting USBO&rsquo;s holdings, and market conditions, it may invest in Futures Contracts traded on other exchanges or in Other
Crude Oil-Related Investments. To the extent that USBO invests in Other Crude-Oil Related Investments, it would prioritize investments
in contracts and instruments that are economically equivalent to the Benchmark Futures Contract, including cleared swaps that satisfy
such criteria, and then, to a lesser extent, it would invest in other types of cleared swaps and other contracts, instruments and
swaps, including swaps in the over-the-counter market. If USBO is required by law or regulation, or by one of its regulators, including
a Futures Exchange, to reduce its position in the Benchmark Futures Contracts to the applicable position limit or to a specified
accountability level or if market conditions dictate it would be more appropriate to invest in Other Crude Oil-Related Investments,
a substantial portion of USBO&rsquo;s assets could be invested in accordance with such priority in Other Crude Oil-Related Investments
that are intended to replicate the return on the Benchmark Futures Contract. As USBO&rsquo;s assets reach higher levels, it is
more likely to exceed position limits, accountability levels or other regulatory limits and, as a result, it is more likely that
it will invest in accordance with such priority in Other Crude Oil-Related Investments at such higher levels. In addition, market
conditions that the General Partner currently anticipates could cause USBO to invest in Other Crude Oil-Related Investments include
those allowing USBO to obtain greater liquidity or to execute transactions with more favorable pricing. But see &ldquo;What are
the Risk Factors Involved with an Investment in USBO?&nbsp;&mdash;&nbsp;Risks Associated With Investing Directly or Indirectly
in Crude Oil&nbsp;&mdash;&nbsp;Regulation of the commodity interests and energy markets is extensive and constantly changing; future
regulatory developments are impossible to predict but may significantly and adversely affect USBO&rdquo; for a discussion of the
potential impact of the Dodd-Frank Act on USBO&rsquo;s ability to invest in OTC transactions and cleared swaps.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner may not be able to
fully invest USBO&rsquo;s assets in Benchmark Futures Contracts having an aggregate notional amount exactly equal to USBO&rsquo;s
NAV. For example, as standardized contracts, the Benchmark Futures Contracts are for a specified amount of a particular commodity,
and USBO&rsquo;s NAV and the proceeds from the sale of a Creation Basket are unlikely to be an exact multiple of the amounts of
those contracts. As a result, in such circumstances, USBO may be better able to achieve the exact amount of exposure to changes
in price of the Benchmark Futures Contracts through the use of Other Crude Oil-Related Investments, such as over-the-counter contracts
that have better correlation with changes in price of the Benchmark Futures Contract.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO anticipates that to the extent it
invests in Futures Contracts other than crude oil contracts (such as futures contracts natural gas, gasoline, heating oil and other
petroleum-based fuels) and Other Crude Oil-Related Investments, it will enter into various non-exchange-traded derivative contracts
to hedge the short-term price movements of such Futures Contracts and Other Crude Oil-Related Investments against the current Benchmark
Futures Contract.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner does not anticipate
letting USBO&rsquo;s Futures Contracts expire and taking delivery of the underlying commodity. Instead, the General Partner closes
existing positions, <I>e.g.,</I> when it changes the Benchmark Futures Contract or it otherwise determines it would be appropriate
to do so and reinvests the proceeds in new Futures Contracts or Other Crude Oil-Related Investments. Positions may also be closed
out to meet orders for Redemption Baskets and in such case proceeds for such baskets will not be reinvested.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">By remaining invested as fully as possible
in Futures Contracts or Other Crude Oil-Related Investments, the General Partner believes that the changes in percentage terms
in USBO&rsquo;s NAV will continue to closely track the changes in percentage terms in the prices of the Benchmark Futures Contract.
The General Partner believes that certain arbitrage opportunities result in the price of the units traded on the NYSE Arca closely
tracking the NAV of USBO. Additionally, crude oil futures contracts traded on the ICE Futures have closely tracked the spot price
of Brent crude oil. Based on these expected interrelationships, the General Partner believes that the daily changes in the price
of USBO&rsquo;s units traded on the NYSE Arca have closely tracked and will continue to closely track the daily changes in the
spot price of Brent crude oil.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What are Futures Contracts? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Futures Contracts are agreements between
two parties. One party agrees to buy a commodity such as Brent crude oil from the other party at a later date at a price and quantity
agreed-upon when the contract is made. Futures Contracts are traded on futures exchanges, including the ICE Futures. For example,
the Benchmark Futures Contract is traded on the ICE Futures in units of 1,000 barrels. The Brent crude Futures Contracts traded
on the ICE Futures are priced by an electronic, screen-based system that determines the price by matching electronically offers
to purchase and sell. Additional risks of investing in Futures Contracts are discussed below. Additional risks of investing in
Futures Contracts are included in &ldquo;What are the Risk Factors Involved with an Investment in USBO?&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Impact of Accountability Levels, Position
Limits and Price Fluctuation Limits</I>. Futures contracts include typical and significant characteristics. Most significantly,
the CFTC and U.S. designated contract markets such as the NYMEX have established accountability levels and position limits on the
maximum net long or net short futures contracts in commodity interests that any person or group of persons under common trading
control (other than as a hedge, which an investment by USBO is not) may hold, own or control. The net position is the difference
between an individual or firm&rsquo;s open long contracts and open short contracts in any one commodity. In addition, most U.S.
based futures exchanges, such as the NYMEX, limit the daily&nbsp;price fluctuation for&nbsp;futures contracts. Currently, the ICE
Futures imposes position and accountability limits that are similar to those imposed by U.S. based futures exchanges and also limits
the maximum daily price fluctuation, while some other non-U.S. futures exchanges have not adopted such limits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The accountability levels for the Benchmark
Futures Contract and other Futures Contracts traded on U.S.-based futures exchanges, such as the NYMEX, are not a fixed ceiling,
but rather a threshold above which the NYMEX may exercise greater scrutiny and control over an investor&rsquo;s positions.&nbsp;The
current accountability level for net long or short positions at any one time in the NYMEX Contract for light, sweet crude oil Futures
Contracts is 20,000 net future contracts.&nbsp;In addition, the ICE Futures maintains the same accountability levels, position
limits and monitoring authority for its light, sweet crude oil contracts as the NYMEX. If USBO and the Related Public Funds exceed
this accountability level for investments in the futures contract for light, sweet crude oil, the NYMEX and ICE Futures will monitor
such exposure and may ask for further information on their activities, including the total size of all positions, investment and
trading strategy, and the extent of liquidity resources of USBO and the Related Public Funds. If deemed necessary by the NYMEX
and/or ICE Futures, USBO could be ordered to reduce its aggregate position back to the accountability level. In contrast, the position
limits for the ICE Futures maintain that when 100 lots or more are traded, the activity must be reported to the exchange on a daily
basis. ICE Futures also maintains that an Expiration Limit of 6,000 lots, long or short, will apply for the five business days
up to and including the expiration date. There are no specific position accountability levels or limits, nor are there are any
maximum daily price fluctuation limits for the ICE Brent Crude Oil (physically settled) futures contract. USBO did not exceed accountability
levels of the NYMEX or ICE Futures during the year ended December 31, 2012. As of December&nbsp;31, 2012, USBO held 406 Futures
Contracts for Brent crude oil traded on the ICE Futures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Position limits differ from accountability
levels in that they represent fixed limits on the maximum number of futures contracts that any person may hold and cannot allow
such limits to be exceeded without express CFTC authority to do so. In addition to accountability levels and position limits that
may apply at any time, the ICE Futures Exchange and the NYMEX impose position limits on contracts held in the last few days of
trading in the near month contract to expire. It is unlikely that USBO will run up against such position limits because USBO&rsquo;s
investment strategy is to close out its positions and &ldquo;roll&rdquo; from the near month contract to expire to the next month
contract during a four-day period beginning two weeks from expiration of the contract. For the year ended December 31, 2012, USBO
did not exceed any position limits imposed by NYMEX and ICE Futures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;In late 2011, the CFTC adopted rules
that impose new position limits on Referenced Contracts (as defined below) involving 28 energy, metals and agricultural commodities
(the &ldquo;Position Limit Rules&rdquo;). The Position Limit Rules were scheduled to become effective on October 12, 2012. However,
on September 28, 2012, the United States District Court for the District of Columbia vacated these regulations on the basis of
ambiguities in the provisions of the CEA (as modified by the Dodd-Frank Act) upon which the regulations were based. In its September
28, 2012 decision, the court remanded the Position Limit Rules to the CFTC with instructions to use its expertise and experience
to resolve the ambiguities in the statute. On November 15, 2012, the CFTC indicated that it will move forward with an appeal of
the District Court&rsquo;s decision to vacate the Position Limit Rules. At this time, it is not possible to predict how the CFTC&rsquo;s
appeal could affect USBO, but it may be substantial and adverse. Furthermore, until such time as the appeal is resolved or, if
applicable revisions to the Position Limit Rules are proposed and adopted, the regulatory architecture in effect prior to the enactment
of the Position Limit Rules will govern transactions in commodities and related derivatives (collectively, &ldquo;Referenced Contracts&rdquo;).
Under that system, the CFTC enforces federal limits on speculation in agricultural products (e.g., corn, wheat and soy), while
futures exchanges enforce position limits and accountability levels for agricultural and certain energy products (e.g., oil and
natural gas). As a result, USBO may be limited with respect to the size of its investments in any commodities subject to these
limits. Finally, subject to certain narrow exceptions, the vacated Position Limit Rules would have required the aggregation, for
purposes of the position limits, of all positions in the 28 Referenced Contracts held by a single entity and its affiliates, regardless
of whether such position existed on U.S. futures exchanges, non-U.S. futures exchanges, in cleared swaps or in over-the-counter
swaps. The CFTC is presently considering new aggregation rules, under a rulemaking proposal that is distinct from the Position
Limit Rules. At this time, it is unclear how any modified aggregation rules may affect USBO, but it may be substantial and adverse.
By way of example, the aggregation rules in combination with any potential revised Position Limit Rules may negatively impact the
ability of USBO to meet its investment objectives through limits that may inhibit the General Partner&rsquo;s ability to sell additional
Creation Baskets of USBO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Examples of the position and price limits
currently imposed are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: left; width: 25%"><FONT STYLE="font-size: 10pt"><B>Futures Contract</B></FONT>&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center; width: 1%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: center; width: 25%"><FONT STYLE="font-size: 10pt"><B>Position Accountability</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Levels and Limits</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center; width: 1%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: center; width: 48%"><FONT STYLE="font-size: 10pt"><B>Maximum Daily&nbsp;Price Fluctuation</B></FONT>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.1in; text-indent: -0.1in"><FONT STYLE="font-size: 10pt">ICE Brent Crude Futures (physically settled)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">There are no position limits.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">There is no maximum daily price fluctuation limit.</FONT></TD></TR>
<TR>
    <TD STYLE="padding-left: 0.1in; text-indent: -0.1in">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.1in; text-indent: -0.1in"><FONT STYLE="font-size: 10pt">NYMEX Brent Crude (financially settled)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Any one month: 20,000 net futures/all months: 20,000 net futures, but not to exceed 2,000 contracts in the last three days of trading in the spot month.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">There is no maximum daily price fluctuation limit.</FONT></TD></TR>
<TR>
    <TD STYLE="padding-left: 0.1in; text-indent: -0.1in">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.1in; text-indent: -0.1in"><FONT STYLE="font-size: 10pt">NYMEX Light, Sweet Crude Oil (physically settled)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Any one month: 10,000 net futures/all months: 20,000 net futures, but not to exceed 3,000 contracts in the last three days of trading in the spot month.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$10.00 per barrel ($10,000 per contract) for all months. If any contract is traded, bid, or offered at the limit for five minutes, trading is halted for five minutes. When trading resumes, the limit is expanded by $10.00 per barrel in either direction. If another halt were triggered, the market would continue to be expanded by $10.00 per barrel in either direction after each successive five-minute trading halt. There will be no maximum price fluctuation limits during any one trading session.</FONT></TD></TR>
<TR>
    <TD STYLE="padding-left: 0.1in; text-indent: -0.1in">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.1in; text-indent: -0.1in"><FONT STYLE="font-size: 10pt">NYMEX Light, Sweet Crude Oil (financially settled)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Any one month: 20,000 net futures/all months: 20,000 net futures, but not to exceed 2,000 contracts in the last three days of trading in the spot month.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">There is no maximum daily price fluctuation limit.</FONT></TD></TR>
<TR>
    <TD STYLE="padding-left: 0.1in; text-indent: -0.1in">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.1in; text-indent: -0.1in"><FONT STYLE="font-size: 10pt">ICE West Texas Intermediate (&ldquo;WTI&rdquo;) Crude Futures (financially settled)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Any one month: 10,000 net futures/all months: 20,000 net futures, but not to exceed 3,000 contracts in the last three days of trading in the spot month.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">There is no maximum daily price fluctuation limit.</FONT></TD></TR>
<TR>
    <TD STYLE="padding-left: 0.1in; text-indent: -0.1in">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.1in; text-indent: -0.1in"><FONT STYLE="font-size: 10pt">NYMEX Heating Oil (physically settled)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Any one month: 5,000 net futures/all months: 7,000 net futures, but not to exceed 1,000 contracts in the last three days of trading in the spot month.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$0.25 per gallon ($10,500 per contract) for all months. If any contract is traded, bid, or offered at the limit for five minutes, trading is halted for five minutes. When trading resumes, the limit is expanded by $0.25 per gallon in either direction. If another halt were triggered, the market would continue to be expanded by $0.25 per gallon in either direction after each successive five-minute trading halt. There will be no maximum price fluctuation limits during any one trading session.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: left; width: 25%"><FONT STYLE="font-size: 10pt"><B>Futures Contract</B></FONT>&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center; width: 1%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: center; width: 25%"><FONT STYLE="font-size: 10pt"><B>Position Accountability</B></FONT><BR>
<FONT STYLE="font-size: 10pt"><B>Levels and Limits</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; text-align: center; width: 1%">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; text-align: center; width: 48%"><FONT STYLE="font-size: 10pt"><B>Maximum Daily&nbsp;Price Fluctuation</B></FONT>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.1in; text-indent: -0.1in"><FONT STYLE="font-size: 10pt">NYMEX Gasoline (physically settled)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Any one month: 5,000 net futures/all months: 7,000 net futures, but not to exceed 1,000 contracts in the last three days of trading in the spot month.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$0.25 per gallon ($10,500 per contract) for all months. If any contract is traded, bid, or offered at the limit for five minutes, trading is halted for five minutes. When trading resumes, the limit is expanded by $0.25 per gallon in either direction. If another halt were triggered, the market would continue to be expanded by $0.25 per gallon in either direction after each successive five-minute trading halt. There will be no maximum price fluctuation limits during any one trading session.</FONT></TD></TR>
<TR>
    <TD STYLE="padding-left: 0.1in; text-indent: -0.1in">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.1in; text-indent: -0.1in"><FONT STYLE="font-size: 10pt">NYMEX Natural Gas (physically settled</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Any one month: 6,000 net futures/all months: 12,000 net futures, but not to exceed 1,000 contracts in the last three days of trading in the spot month.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$3.00 per million British thermal units (&ldquo;mmBtu&rdquo;) ($30,000 per contract) for all months. If any contract is traded, bid, or offered at the limit for five minutes, trading is halted for five minutes. When trading resumes, the limit is expanded by $3.00 per mmBtu in either direction. If another halt were triggered, the market would continue to be expanded by $3.00 per mmBtu in either direction after each successive five-minute trading halt. There will be no maximum price fluctuation limits during any one trading session.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Price Volatility.</I> The price volatility
of Futures Contracts generally has been historically greater than that for traditional securities such as stocks and bonds. Price
volatility often is greater day-to-day as opposed to intra-day. Futures Contracts tend to be more volatile than stocks and bonds
because price movements for crude oil are more currently and directly influenced by economic factors for which current data is
available and are traded by crude oil futures traders throughout the day. Because USBO invests a significant portion of its assets
in Futures Contracts, the assets of USBO, and therefore the prices of USBO units, may be subject to greater volatility than traditional
securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Marking-to-Market Futures Positions.</I>
Futures Contracts are marked to market at the end of each trading day and the margin required with respect to such contracts is
adjusted accordingly. This process of marking-to-market is designed to prevent losses from accumulating in any futures account.
Therefore, if USBO&rsquo;s futures positions have declined in value, USBO may be required to post &ldquo;variation margin&rdquo;
to cover this decline. Alternatively, if USBO futures positions have increased in value, this increase will be credited to USBO&rsquo;s
account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO anticipates that to the extent it
invests in Futures Contracts other than Brent crude oil contracts (such as futures contracts for WTI light, sweet crude oil) and
Other Crude Oil-Related Investments, it will enter into various non-exchange-traded derivative contracts to hedge the short-term
price movements of such Futures Contracts and Other Crude Oil-Related Investments against the current Benchmark Futures Contract.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What is the Crude Oil Market and the Petroleum-Based Fuel
Market? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Brent Crude Oil</I>.&nbsp;Crude oil
is the world&rsquo;s most actively traded commodity. The futures contracts for Brent crude oil that are traded on the ICE Futures
Exchange are the world&rsquo;s second most liquid forum for crude oil trading, as well as the world&rsquo;s second largest volume
futures contract trading on a physical commodity. Due to the liquidity and price transparency of light, sweet crude oil futures
contracts, they are used as a principal international pricing benchmark. The futures contracts for Brent crude oil trade on the
ICE Futures Exchange in units of 1,000 U.S. barrels and, if not closed out before maturity, will result in delivery of oil to Sullom
Voe, an oil terminal located in the Shetland Island near Scotland, which is also accessible to the international spot markets by
tanker.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The price of crude oil is established by
the supply and demand conditions in the global market overall, and more particularly, in the main refining centers of Singapore,
Northwest Europe, and the U.S. Gulf Coast. Demand for petroleum products by consumers, as well as agricultural, manufacturing and
transportation industries, determines demand for crude oil by refiners. Since the precursors of product demand are linked to economic
activity, crude oil demand will tend to reflect economic conditions. However, other factors such as weather also influence product
and crude oil demand. The price of Brent crude oil has historically been volatile.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Heating Oil.</I> Heating oil, also known
as No.&nbsp;2 fuel oil, accounts for approximately 25% of the yield of a barrel of crude oil, the second largest &ldquo;cut&rdquo;
from oil after gasoline. The heating oil futures contract listed and traded on the NYMEX, trades in units of 42,000 gallons (1,000
barrels) and is based on delivery in the New York harbor, the principal cash market-trading center. The price of heating oil has
historically been volatile.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Gasoline.</I> Gasoline is the largest
single volume refined product sold in the U.S. and accounts for almost half of national oil consumption. The gasoline futures contract
listed and traded on the NYMEX, trades in units of 42,000 gallons (1,000 barrels) and is based on delivery at petroleum products
terminals in the New York harbor, the major East Coast trading center for imports and domestic shipments from refineries in the
New York harbor area or from the Gulf Coast refining centers. The price of gasoline has historically been volatile.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Natural Gas.</I> Natural gas accounts
for almost a quarter of U.S. energy consumption. The natural gas futures contract listed and traded on the NYMEX trades in units
of 10,000 mmBtu and is based on delivery at the Henry Hub in Louisiana, the nexus of 16 intra- and interstate natural gas pipeline
systems that draw supplies from the region&rsquo;s prolific gas deposits. The pipelines serve markets throughout the U.S. East
Coast, the Gulf Coast, the Midwest, and up to the Canadian border. The price of natural gas has historically been volatile.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">As noted, the General Partner also believes
that the changes in the price of the Benchmark Futures Contract will closely correlate with changes in the spot price of Brent
crude oil. Assuming that the units&rsquo; value tracks the Benchmark Futures Contract as intended, the stated objective of USBO
for the units&rsquo; NAV to reflect the performance of the spot price of Brent crude oil would be met if the trend reflected over
the past ten years were to continue. However, there is no guarantee that such trend will continue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO may invest in certain other fuel-based
commodity futures contracts. The chart below illustrates the historical correlation between the Benchmark Futures Contract and
certain other fuel-based commodity futures contracts in which USBO may invest over the last ten years. These correlations are relevant
because the General Partner endeavors to invest USBO&rsquo;s assets in Futures Contracts and Other Crude Oil-Related Investments
so that daily changes in USBO&rsquo;s NAV correlate as closely as possible with daily changes in the price of the Benchmark Futures
Contract. If USBO invests in other fuel-based commodity futures contracts and such contracts do not closely correlate with the
Futures Contracts then their use could lead to greater tracking error.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The degree of correlation varies both among
the different commodities and also over time. As such, the use of any energy related commodity to hedge a different energy commodity
can only produce, at best, an imperfect hedge.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Why Does USBO Purchase and Sell Futures Contracts? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO&rsquo;s investment objective is for
the daily changes in percentage terms of its units&rsquo; NAV to reflect the daily changes in percentage terms of the Benchmark
Futures Contract, less USBO&rsquo;s expenses. USBO invests primarily in Futures Contracts. USBO seeks to have its aggregate NAV
approximate at all times the aggregate market value of the Futures Contracts and Other Crude Oil-Related Investments it holds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In connection with investing in Futures
Contracts and Other Crude Oil-Related Investments, USBO holds Treasuries, cash and/or cash equivalents that serve as segregated
assets supporting USBO&rsquo;s positions in Futures Contracts and Other Crude Oil-Related Investments. For example, the purchase
of a Futures Contract with a stated value of $10 million would not require USBO to pay $10 million upon entering into the contract;
rather, only a margin deposit, generally of 5% to 30% of the stated value of the Futures Contract, would be required. To secure
its Futures Contract obligations, USBO would deposit the required margin with the futures commission merchant and would separately
hold, through its Custodian, Treasuries, cash and/or cash equivalents in an amount equal to the balance of the current market value
of the contract, which at the contract&rsquo;s inception would be $10 million minus the amount of the margin deposit, or $9 million
(assuming a 10% margin).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">As a result of the foregoing, typically
5% to 30% of USBO&rsquo;s assets are held as margin in segregated accounts with a futures commission merchant. In addition to the
Treasuries or cash it posts with the futures commission merchant for the Futures Contracts it owns, USBO holds, through the Custodian,
Treasuries, cash and/or cash equivalents that can be posted as margin or as collateral to support its over-the-counter contracts.
USBO earns income from the Treasuries and/or cash equivalents that it purchases, and on the cash it holds through the Custodian.
USBO anticipates that the earned income will increase the NAV and limited partners&rsquo; capital contribution accounts. USBO reinvests
the earned income, holds it in cash, or uses it to pay its expenses. If USBO reinvests the earned income, it makes investments
that are consistent with its investment objective.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What is the Flow of Units? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><img src="tpg62.jpg"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What are the Trading Policies of USBO? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Liquidity </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO invests only in Futures Contracts
and Other Crude Oil-Related Investments that, in the opinion of the General Partner, are traded in sufficient volume to permit
the ready taking and liquidation of positions in these financial interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Spot Commodities </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">While certain of the Futures Contracts
traded on the ICE Futures can be physically settled, USBO does not intend to take or make physical delivery. USBO may from time
to time trade in Other Crude Oil-Related Investments, including contracts based on the spot price of Brent crude oil.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Leverage </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner endeavors to have the
value of USBO&rsquo;s Treasuries, cash and/or cash equivalents, whether held by USBO or posted as margin or collateral, at all
times approximate the aggregate market value of its obligations under USBO&rsquo;s Futures Contracts and Other Crude Oil-Related
Investments. Commodity pools&rsquo; trading positions in futures contracts or other related investments are typically required
to be secured by the deposit of margin funds that represent only a small percentage of a futures contract&rsquo;s (or other commodity
interest&rsquo;s) entire market value. While the General Partner does not intend to leverage USBO&rsquo;s assets, it is not prohibited
from doing so under the LP Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Borrowings </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Borrowings are not used by USBO unless
USBO is required to borrow money in the event of physical delivery, if USBO trades in cash commodities, or for short-term needs
created by unexpected redemptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Over-the-Counter Derivatives (Including Spreads and Straddles)
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In addition to Futures Contracts, there
are also a number of listed options on the Futures Contracts on the principal futures exchanges. These contracts offer investors
and hedgers another set of financial vehicles to use in managing exposure to the Brent crude oil market. Consequently, USBO may
purchase options on Brent crude oil Futures Contracts on these exchanges in pursuing its investment objective.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In addition to the Futures Contracts and
options on the Futures Contracts, there also exists an active non-exchange-traded market in derivatives tied to crude oil.&nbsp;These
derivatives transactions (also known as over-the-counter contracts) are usually entered into between two parties in private contracts.&nbsp;Unlike
most of the exchange-traded Futures Contracts or exchange-traded options on the Futures Contracts, each party to such contract
bears the credit risk of the other party, i.e., the risk that the other party may not be able to perform its obligations under
its contract.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">To reduce the credit risk that arises in
connection with such contracts, USBO will generally enter into an agreement with each counterparty based on the Master Agreement
published by the International Swaps and Derivatives Association, Inc. (&ldquo;ISDA&rdquo;) that provides for the netting of its
overall exposure to its counterparty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner assesses or reviews,
as appropriate, the creditworthiness of each potential or existing counterparty to an over-the-counter contract pursuant to guidelines
approved by the General Partner&rsquo;s Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO may employ spreads or straddles in
its trading to mitigate the differences in its investment portfolio and its goal of tracking the price of the Benchmark Futures
Contract.&nbsp;USBO would use a spread when it chooses to take simultaneous long and short positions in futures written on the
same underlying asset, but with different delivery months.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO has not employed any hedging methods
since all of its investments have been made over an exchange. Therefore, USBO has not been exposed to counterparty risk.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Pyramiding </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO has not and will not employ the technique,
commonly known as pyramiding, in which the speculator uses unrealized profits on existing positions as variation margin for the
purchase or sale of additional positions in the same or another commodity interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Who are the Service Providers? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">BBH&amp;Co. is the registrar and transfer
agent for the units. BBH&amp;Co. is also the Custodian for USBO. In this capacity, BBH&amp;Co. holds USBO&rsquo;s Treasuries, cash
and/or cash equivalents pursuant to a custodial agreement. In addition, in its capacity as Administrator for USBO, performs certain
administrative and accounting services for USBO and prepares certain SEC, NFA and CFTC reports on behalf of USBO. The General Partner
pays BBH&amp;Co.&rsquo;s fees for these services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">BBH&amp;Co.&rsquo;s principal business
address is 50 Milk Street, Boston, MA 02109-3661. BBH&amp;Co., a private bank founded in 1818, is neither a publicly held company
nor insured by the Federal Deposit Insurance Corporation. BBH&amp;Co. is authorized to conduct a commercial banking business in
accordance with the provisions of Article IV of the New York State Banking Law, New York Banking Law &sect;&sect;160&ndash;181,
and is subject to regulation, supervision, and examination by the New York State Department of Financial Services. BBH&amp;Co.
is also licensed to conduct a commercial banking business by the Commonwealths of Massachusetts and Pennsylvania and is subject
to supervision and examination by the banking supervisors of those states.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO also employs ALPS Distributors, Inc.
as the Marketing Agent. the General Partner pays the Marketing Agent an annual fee. In no event may the aggregate compensation
paid to the Marketing Agent and any affiliate of the General Partner for distribution-related services in connection with the offering
of units exceed ten percent (10%) of the gross proceeds of the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">ALPS&rsquo;s principal business address
is 1290 Broadway, Suite 1100, Denver, CO 80203. ALPS is the marketing agent for USBO. ALPS is a broker-dealer registered with the
Financial Industry Regulatory Authority (&ldquo;FINRA&rdquo;) and a member of the Securities Investor Protection Corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">UBS Securities LLC (&ldquo;UBS Securities&rdquo;)
is USBO&rsquo;s FCM. USBO and UBS Securities have entered into an Institutional Futures Client Account Agreement. This agreement
requires UBS Securities to provide services to USBO in connection with the purchase and sale of Crude Oil Interests that may be
purchased or sold by or through UBS Securities for USBO&rsquo;s account. USBO pays UBS Securities&rsquo; commissions for executing
and clearing trades on behalf of USBO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">UBS Securities&rsquo; principal business
address is 677 Washington Blvd, Stamford, CT 06901. UBS Securities is a futures clearing broker for USBO. UBS Securities is registered
in the U.S. with FINRA as a broker-dealer and with the CFTC as a FCM. UBS Securities is a member of various U.S. futures and securities
exchanges.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">UBS is and has been a defendant in numerous
legal proceedings, including actions brought by regulatory organizations and government agencies, relating to its securities and
commodities business that allege various violations of federal and state securities laws. UBS AG, the ultimate parent company to
UBS Securities, files annual reports and quarterly reports to the SEC in which it discloses material information about matters
involving but not limited to, UBS Securities, including information about any material litigation or regulatory investigations
(https://www.ubs.com/global/en/about_ubs/investor_relations/quarterly_reporting/2011.html). Actions with respect to UBS Securities&rsquo;
FCM business are publicly available on the website of the National Futures Association (http://www.nfa.futures.org/).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">On June 27, 2007, the Securities Division
of the Secretary of the Commonwealth of Massachusetts (&ldquo;Massachusetts Securities Division&rdquo;) filed an administrative
complaint (the &ldquo;Complaint&rdquo;) and notice of adjudicatory proceeding against UBS Securities, captioned In The Matter of
UBS Securities, LLC, Docket No. E-2007-0049, which alleged that UBS Securities violated the Massachusetts Uniform Securities Act
(the &ldquo;Act&rdquo;) and related regulations by providing the advisers for certain hedge funds with gifts and gratuities in
the form of below market office rents, personal loans with below market interest rates, event tickets, and other perks, in order
to induce those hedge fund advisers to increase or retain their level of prime brokerage fees paid to UBS Securities. On November
22, 2010, UBS Securities entered into a Consent Order and Settlement with the Massachusetts Securities Division, pursuant to which
UBS Securities agreed to implementing a disclosure policy and retaining an independent consultant to monitor the policy. UBS Securities
also paid a $100,000 fine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In the summer of 2008, the Massachusetts
Securities Division, Texas State Securities Board, and the New York Attorney General (&ldquo;NYAG&rdquo;) all brought actions against
UBS and UBS Financial Services, Inc. (&ldquo;UBS Financial&rdquo;), alleging violations of various state law anti-fraud provisions
in connection with the marketing and sale of auction rate securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">On August 8, 2008, UBS Securities and UBS
Financial Services reached agreements with the SEC, the NYAG, the Massachusetts Securities Division and other state regulatory
agencies represented by the North American Securities Administrators Association (&ldquo;NASAA&rdquo;) to restore liquidity to
all remaining client&rsquo;s holdings of auction rate securities by June 30, 2012. On October 2, 2008, UBS Securities and UBS Financial
entered into a final consent agreement with the Massachusetts Securities Division settling all allegations in the Massachusetts
Securities Division&rsquo;s administrative proceeding against UBS Securities and UBS Financial with regards to the auction rate
securities matter. On December 11, 2008, UBS Securities and UBS Financial executed an Assurance of Discontinuance in the auction
rate securities settlement with the NYAG. On the same day, UBS Securities and UBS Financial finalized settlements with the SEC.
UBS Securities and UBS Financial paid penalties of $75 million to NYAG and an additional $75 million to be apportioned among the
participating NASAA states. In March 2010, UBS Securities and UBS Financial and NASAA agreed on final settlement terms, pursuant
to which, UBS Securities and UBS Financial agreed to provide client liquidity up to an additional $200 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">On August 14, 2008 the New Hampshire Bureau
of Securities Regulation (the &ldquo;Bureau&rdquo;) filed an administrative action against UBS Securities relating to a student
loan issuer, the New Hampshire Higher Education Loan Corp. (&ldquo;NHHELCO&rdquo;). The complaint alleged fraudulent and unethical
conduct in violation of New Hampshire state statutes. On April 14, 2010, UBS entered into a Consent Order resolving all of the
Bureau&rsquo;s claims. UBS Securities paid $750,000 to the Bureau for all costs associated with the Bureau&rsquo;s investigation.
UBS Securities entered a separate civil settlement with NHHELCO and provided a total financial benefit of $20 million to NHHELCO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">On April 29, 2010, the CFTC issued an order
with respect to UBS Securities and levied a fine of $200,000. The Order stated that on February 6, 2009, UBS Securities&rsquo;
employee broker aided and abetted UBS Securities&rsquo; customer&rsquo;s concealment of material facts from the NYMEX in violation
of Section 9(a)(4) of the CEA, 7 U.S.C. &sect; 13(a)(4) (2006). Pursuant to NYMEX Rules, a block trade must be reported to NYMEX
&ldquo;within five minutes of the time of execution&rdquo; consistent with the requirements of NYMEX Rule 6.21C(A)(6). Although
the block trade in question was executed earlier in the day, UBS Securities&rsquo; employee broker aided and abetted its customer&rsquo;s
concealment of facts when, in response to the customer&rsquo;s request to delay reporting the trade until after the close of trading,
UBS Securities&rsquo; employee did not report the trade until after the close. Because the employee broker undertook his actions
within the scope of his employment, pursuant to Section 2(a)(1)(B) of the CEA, 7 U.S.C. &sect; 2(a)(1)(B) (2006), and Commission
Regulation 1.2, 17 C.F.R. &sect; 1.2 (2009), UBS Securities is liable for the employee broker&rsquo;s aiding and abetting of its
customer&rsquo;s violation of Section 9(a)(4) of the CEA. The fine has been paid and the matter is now closed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">UBS Securities will act only as clearing
broker for USBO and as such will be paid commissions for executing and clearing trades on behalf of USBO. UBS Securities has not
passed upon the adequacy or accuracy of this annual report on Form 10-K. UBS Securities neither will act in any supervisory capacity
with respect to the General Partner nor participate in the management of the General Partner or USBO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">UBS Securities is not affiliated with USBO
or the General Partner. Therefore, USBO does not believe that USBO has any conflicts of interest with UBS Securities or their trading
principals arising from their acting as USBO&rsquo;s FCM.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Currently, the General Partner does not
employ commodity trading advisors for trading of USBO contracts. The General Partner currently does, however, employ a trading
advisor for USCI, CPER, USAG and USMI, SummerHaven Investment Management, LLC (&ldquo;SummerHaven&rdquo;). If, in the future, the
General Partner does employ commodity trading advisors for USBO, it will choose each advisor based on arm&rsquo;s-length negotiations
and will consider the advisor&rsquo;s experience, fees and reputation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Fees of USBO </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Fees and Compensation Arrangements with the General Partner
and Non-Affiliated Service Providers* </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: 49%; border-bottom: windowtext 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font-size: 10pt"><B>Service
        Provider</B></FONT></P></TD>
    <TD STYLE="width: 2%">
&nbsp;</TD>
    <TD STYLE="width: 49%; border-bottom: windowtext 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>Compensation
        Paid by General Partner</B></FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Brown Brothers Harriman&nbsp;&amp; Co., Custodian and Administrator</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Minimum amount of $75,000 annually* for its custody, fund accounting and fund administration services rendered to all funds, as well as a $20,000 annual fee for its transfer agency services. In addition, an asset-based charge of (a) 0.06% for the first $500 million of USBO and the Related Public Funds&rsquo; combined net assets, (b) 0.0465% for USBO and the Related Public Funds&rsquo; combined net assets greater than $500 million but less than $1 billion, and (c) 0.035% once USBO and the Related Public Funds&rsquo; combined net assets exceed $1 billion.**</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.1in; text-indent: -0.1in">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.1in; text-indent: -0.1in"><FONT STYLE="font-size: 10pt">ALPS Distributors, Inc., Marketing Agent</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">0.06% on assets up to $3 billion and 0.04% on assets in excess of $3 billion.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">*</TD><TD>The General Partner pays this compensation.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">**</TD><TD>The annual minimum amount will not apply if the asset-based charge for all accounts in the aggregate exceeds $75,000. The General
Partner also will pay transaction charge fees to BBH&amp;Co., ranging from $7.00 to $15.00 per transaction for the funds.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Compensation to the General Partner </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 85%; border-collapse: collapse">
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 49%; border-bottom: windowtext 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt"><B>Assets</B></FONT>&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 2%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 49%; border-bottom: windowtext 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Management Fee</B></FONT>&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt">All assets</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">0.75% of NAV</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Fees are calculated on a daily basis (accrued
at 1/365 of the applicable percentage of NAV on that day) and paid on a monthly basis. NAV is calculated by taking the current
market value of USBO&rsquo;s total assets, subtracting any liabilities and dividing that number by the total number of outstanding
units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Fees and Compensation Arrangements between USBO and Non-Affiliated
Service Providers*** </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 85%; border-collapse: collapse">
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 49%; border-bottom: windowtext 1pt solid; text-align: left"><FONT STYLE="font-size: 10pt"><B>Service Provider</B></FONT></TD>
    <TD STYLE="vertical-align: top; width: 2%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 49%; border-bottom: windowtext 1pt solid; text-align: center; padding-left: 0"><FONT STYLE="font-size: 10pt"><B>Compensation Paid by USBO</B></FONT>&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,255,204)">
    <TD STYLE="vertical-align: top; padding-left: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">UBS Securities LLC, Futures Commission Merchant</FONT></TD>
    <TD STYLE="vertical-align: top; padding-left: 7.65pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0"><FONT STYLE="font-size: 10pt">Approximately $3.50 per buy or sell</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Non-Affiliated Brokers</FONT></TD>
    <TD STYLE="vertical-align: top; padding-left: 7.65pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0"><FONT STYLE="font-size: 10pt">Approximately 0.08% of assets</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 24.45pt">***</TD><TD>USBO pays this compensation.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Form of Units </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Registered Form</I>.&nbsp;Units are
issued in registered form in accordance with the LP Agreement. The Administrator has been appointed registrar and transfer agent
for the purpose of transferring units in certificated form. The Administrator keeps a record of all limited partners and holders
of the units in certificated form in the registry (the &ldquo;Register&rdquo;). The General Partner recognizes transfers of units
in certificated form only if done in accordance with the LP Agreement. The beneficial interests in such units are held in book-entry
form through participants and/or accountholders in DTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Book Entry</I>.&nbsp;Individual certificates
are not issued for the units. Instead, units are represented by one or more global certificates, which are deposited by the Administrator
with DTC and registered in the name of Cede&nbsp;&amp; Co., as nominee for DTC. The global certificates evidence all of the units
outstanding at any time. Unitholders are limited to (1)&nbsp;participants in DTC such as banks, brokers, dealers and trust companies
(&ldquo;DTC Participants&rdquo;), (2)&nbsp;those who maintain, either directly or indirectly, a custodial relationship with a DTC
Participant (&ldquo;Indirect Participants&rdquo;), and (3)&nbsp;those who hold interests in the units through DTC Participants
or Indirect Participants, in each case who satisfy the requirements for transfers of units. DTC Participants acting on behalf of
investors holding units through such participants&rsquo; accounts in DTC will follow the delivery practice applicable to securities
eligible for DTC&rsquo;s Same-Day Funds Settlement System. Units are credited to DTC Participants&rsquo; securities accounts following
confirmation of receipt of payment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>DTC.</I> DTC has advised us as follows.
It is a limited purpose trust company organized under the laws of the State of New York and is a member of the Federal Reserve
System, a &ldquo;clearing corporation&rdquo; within the meaning of the New York Uniform Commercial Code and a &ldquo;clearing agency&rdquo;
registered pursuant to the provisions of Section&nbsp;17A of the Exchange Act. DTC holds securities for DTC Participants and facilitates
the clearance and settlement of transactions between DTC Participants through electronic book-entry changes in accounts of DTC
Participants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Transfer of Units </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Transfers of Units Only Through DTC.</I>
The units are only transferable through the book-entry system of DTC. Limited partners who are not DTC Participants may transfer
their units through DTC by instructing the DTC Participant holding their units (or by instructing the Indirect Participant or other
entity through which their units are held) to transfer the units. Transfers are made in accordance with standard securities industry
practice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Transfers of interests in units with DTC
are made in accordance with the usual rules and operating procedures of DTC and the nature of the transfer. DTC has established
procedures to facilitate transfers among the participants and/or accountholders of DTC. Because DTC can only act on behalf of DTC
Participants, who in turn act on behalf of Indirect Participants, the ability of a person or entity having an interest in a global
certificate to pledge such interest to persons or entities that do not participate in DTC, or otherwise take actions in respect
of such interest, may be affected by the lack of a certificate or other definitive document representing such interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">DTC has advised USBO that it will take
any action permitted to be taken by a unitholder (including, without limitation, the presentation of a global certificate for exchange)
only at the direction of one or more DTC Participants in whose account with DTC interests in global certificates are credited and
only in respect of such portion of the aggregate principal amount of the global certificate as to which such DTC Participant or
Participants has or have given such direction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Transfer/Application Requirements.</I>
All purchasers of USBO&rsquo;s units, and potentially any purchasers of units in the future, who wish to become limited partners
or other record holders and receive cash distributions, if any, or have certain other rights, must deliver an executed transfer
application in which the purchaser or transferee must certify that, among other things, he, she or it agrees to be bound by USBO&rsquo;s
LP Agreement and is eligible to purchase USBO&rsquo;s securities. Each purchaser of units must execute a transfer application and
certification. The obligation to provide the form of transfer application is imposed on the seller of units or, if a purchase of
units is made through an exchange, the form may be obtained directly through USBO. Further, the General Partner may request each
record holder to furnish certain information, including that record holder&rsquo;s nationality, citizenship or other related status.
A record holder is a unitholder that is, or has applied to be, a limited partner. An investor who is not a U.S. resident may not
be eligible to become a record holder or one of USBO&rsquo;s limited partners if that investor&rsquo;s ownership would subject
USBO to the risk of cancellation or forfeiture of any of USBO&rsquo;s assets under any federal, state or local law or regulation.
If the record holder fails to furnish the information or if the General Partner determines, on the basis of the information furnished
by the holder in response to the request, that such holder is not qualified to become one of USBO&rsquo;s limited partners, the
General Partner may be substituted as a holder for the record holder, who will then be treated as a non-citizen assignee, and USBO
will have the right to redeem those securities held by the record holder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">A transferee&rsquo;s broker, agent or nominee
may complete, execute and deliver a transfer application and certification. USBO may, at its discretion, treat the nominee holder
of a unit as the absolute owner. In that case, the beneficial holder&rsquo;s rights are limited solely to those that it has against
the nominee holder as a result of any agreement between the beneficial owner and the nominee holder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">A person purchasing USBO&rsquo;s existing
units, who does not execute a transfer application and certify that the purchaser is eligible to purchase those securities acquires
no rights in those securities other than the right to resell those securities. Whether or not a transfer application is received
or the consent of the General Partner obtained, USBO&rsquo;s units are securities and are transferable according to the laws governing
transfers of securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Any transfer of units will not be recorded
by the transfer agent or recognized by the General Partner unless a completed transfer application is delivered to the General
Partner or the Administrator. When acquiring units, the transferee of such units that completes a transfer application will:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>be an assignee until admitted as a substituted limited partner upon the consent and sole discretion of the General Partner
and the recording of the assignment on the books and records of the partnership;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>automatically request admission as a substituted limited partner;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>agree to be bound by the terms and conditions of, and execute, USBO&rsquo;s LP Agreement;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>represent that such transferee has the capacity and authority to enter into USBO&rsquo;s LP Agreement;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>grant powers of attorney to the General Partner as general partner of USBO and any liquidator of USBO; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>make the consents and waivers contained in USBO&rsquo;s LP Agreement.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">An assignee will become a limited partner
in respect of the transferred units upon the consent of the General Partner as general partner of USBO and the recordation of the
name of the assignee on USBO&rsquo;s books and records. Such consent may be withheld in the sole discretion of the General Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">If consent of the General Partner is withheld,
such transferee shall be an assignee. An assignee shall have an interest in the partnership equivalent to that of a limited partner
with respect to allocations and distributions, including, without limitation, liquidating distributions, of the partnership. With
respect to voting rights attributable to units that are held by assignees, the General Partner shall be deemed to be the limited
partner with respect thereto and shall, in exercising the voting rights in respect of such units on any matter, vote such units
at the written direction of the assignee who is the record holder of such units. If no such written direction is received, such
units will not be voted. An assignee shall have no other rights of a limited partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Until a unit has been transferred on USBO&rsquo;s
books, USBO and the transfer agent may treat the record holder of the unit as the absolute owner for all purposes, except as otherwise
required by law or stock exchange regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Withdrawal of Limited Partners </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">As discussed in the LP Agreement, if the
General Partner gives at least fifteen (15)&nbsp;days&rsquo; written notice to a limited partner, then the General Partner may
for any reason, in its sole discretion, require any such limited partner to withdraw entirely from the partnership or to withdraw
a portion of its partner capital account. If the General Partner does not give at least fifteen (15)&nbsp;days&rsquo; written notice
to a limited partner, then it may only require withdrawal of all or any portion of the capital account of any limited partner in
the following circumstances: (i)&nbsp;the unitholder made a misrepresentation to the General Partner in connection with its purchase
of units; or (ii)&nbsp;the limited partner&rsquo;s ownership of units would result in the violation of any law or regulations applicable
to the partnership or a partner. In these circumstances, the General Partner without notice may require the withdrawal at any time,
or retroactively. The limited partner thus designated shall withdraw from the partnership or withdraw that portion of its partner
capital account specified, as the case may be, as of the close of business on such date as determined by the General Partner. The
limited partner thus designated shall be deemed to have withdrawn from the partnership or to have made a partial withdrawal from
its partner capital account, as the case may be, without further action on the part of the limited partner and the provisions of
the LP Agreement shall apply.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>What is the Plan of Distribution? </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Buying and Selling Units </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Most investors buy and sell units of USBO
in secondary market transactions through brokers. Units trade on the NYSE Arca under the ticker symbol &ldquo;BNO&rdquo;. Units
are bought and sold throughout the trading day like other publicly traded securities. When buying or selling units through a broker,
most investors incur customary brokerage commissions and charges. Investors are encouraged to review the terms of their brokerage
account for details on applicable charges and, as discussed below under &ldquo;U.S. Federal Income Tax Considerations,&rdquo; any
provisions authorizing the broker to borrow units held on your behalf.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Marketing Agent and Authorized Purchasers </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><FONT STYLE="font-size: 10pt">The offering
of USBO&rsquo;s units is a best efforts offering. USBO continuously offers Creation Baskets consisting of 50,000 units through
the Marketing Agent, to Authorized Purchasers. Merrill Lynch Professional Clearing Corp. was the initial Authorized Purchaser.
Authorized Purchasers pay a $350 fee for each order to create one or more Creation Baskets</FONT> <FONT STYLE="font-size: 10pt">through
May 1, 2014; on and after May 2, 2014, the fee increases to $1,000. The Marketing Agent receives, for its services as marketing
agent to USBO, a marketing fee of 0.06% on USBO&rsquo;s assets up to the first $3 billion; and 0.04% on USBO&rsquo;s assets in
excess of $3 billion;, provided, however, that in no event may the aggregate compensation paid to the Marketing Agent and any affiliate
of the General Partner for distribution- &ndash; related services in connection with this offering exceed ten percent (10%) of
the gross proceeds of this offering.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The offering of baskets is being made in
compliance with Conduct Rule 2310 of FINRA. Accordingly, Authorized Purchasers will not make any sales to any account over which
they have discretionary authority without the prior written approval of a purchaser of units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The per unit price of units offered in
Creation Baskets on any subsequent day will be the total NAV of USBO calculated shortly after the close of the core trading session
on the NYSE Arca on that day divided by the number of issued and outstanding units. An Authorized Purchaser is not required to
sell any specific number or dollar amount of units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">By executing an Authorized Purchaser Agreement,
an Authorized Purchaser becomes part of the group of parties eligible to purchase baskets from, and put baskets for redemption
to, USBO. An Authorized Purchaser is under no obligation to create or redeem baskets, and an Authorized Purchaser is under no obligation
to offer to the public units of any baskets it does create.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">A list of Authorized Purchasers is available
from the Marketing Agent. Because new units can be created and issued on an ongoing basis, at any point during the life of USBO,
a &ldquo;distribution&rdquo;, as such term is used in the 1933 Act, will be occurring. Authorized Purchasers, other broker-dealers
and other persons are cautioned that some of their activities may result in their being deemed participants in a distribution in
a manner that would render them statutory underwriters and subject them to the prospectus-delivery and liability provisions of
the 1933 Act. In addition, any purchaser who purchases units with a view towards distribution of such units may be deemed to be
a statutory underwriter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Authorized Purchasers will comply with
the prospectus-delivery requirements in connection with the sale of units to customers. For example, an Authorized Purchaser, other
broker-dealer firm or its client will be deemed a statutory underwriter if it purchases a basket from USBO, breaks the basket down
into the constituent units and sells the units to its customers; or if it chooses to couple the creation of a supply of new units
with an active selling effort involving solicitation of secondary market demand for the units. Authorized Purchasers may also engage
in secondary market transactions in units that would not be deemed &ldquo;underwriting&rdquo;. For example, an Authorized Purchaser
may act in the capacity of a broker or dealer with respect to units that were previously distributed by other Authorized Purchasers.
A determination of whether a particular market participant is an underwriter must take into account all the facts and circumstances
pertaining to the activities of the broker-dealer or its client in the particular case, and the examples mentioned above should
not be considered a complete description of all the activities that would lead to designation as an underwriter and subject them
to the prospectus-delivery and liability provisions of the 1933 Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Dealers who are neither Authorized Purchasers
nor &ldquo;underwriters&rdquo; but are nonetheless participating in a distribution (as contrasted to ordinary secondary trading
transactions), and thus dealing with units that are part of an &ldquo;unsold allotment&rdquo; within the meaning of Section&nbsp;4(3)(C)
of the 1933 Act, would be unable to take advantage of the prospectus-delivery exemption provided by Section&nbsp;4(3) of the 1933
Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner may qualify the units
in states selected by the General Partner and intends that sales be made through broker-dealers who are members of FINRA. Investors
intending to create or redeem baskets through Authorized Purchasers in transactions not involving a broker-dealer registered in
such investor&rsquo;s state of domicile or residence should consult their legal advisor regarding applicable broker-dealer or securities
regulatory requirements under the state securities laws prior to such creation or redemption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">While the Authorized Purchasers may be
indemnified by the General Partner, they will not be entitled to receive a discount or commission from USBO for their purchases
of Creation Baskets. The difference between the price paid by Authorized Purchasers as underwriters and the price paid to such
Authorized Purchasers by investors will be deemed underwriting compensation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Calculating NAV </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO&rsquo;s NAV is calculated by:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>Taking the current market value of its total assets; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>Subtracting any liabilities; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>Dividing that total by the total number of outstanding units.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Administrator calculates the NAV of
USBO once each NYSE Arca trading day. The per unit NAV for a particular trading day is released after 4:00 p.m. New York time.
Trading during the core trading session on the NYSE Arca typically closes at 4:00 p.m. New York time. The Administrator uses the
ICE Futures Exchange settlement price (a weighted average price of trades during a three minute settlement period from 2:27 p.m.
to 2:30 p.m. New York time) for the contracts traded on the ICE Futures Exchange, but calculates or determines the value of all
other USBO investments (including Futures Contracts not traded on NYMEX, Other Crude Oil-Related Investments and Treasuries) using
market quotations, if available, or other information customarily used to determine the fair value of such as of the earlier of
the close of the NYSE Arca or 4:00 p.m. New York time, in accordance with the current Administrative Agency Agreement among BBH&amp;Co.,
USBO and the General Partner. &ldquo;Other information&rdquo; customarily used in determining fair value includes information consisting
of market data in the relevant market supplied by one or more third parties including, without limitation, relevant rates, prices,
yields, yield curves, volatilities, spreads, correlations or other market data in the relevant market; or information of the types
described above from internal sources if that information is of the same type used by USBO in the regular course of its business
for the valuation of similar transactions. The information may include costs of funding, to the extent costs of funding are not
and would not be a component of the other information being utilized. Third parties supplying quotations or market data may include,
without limitation, dealers in the relevant markets, end-users of the relevant product, information vendors, brokers and other
sources of market information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In addition, in order to provide updated
information relating to USBO for use by investors and market professionals, the NYSE Arca calculates and disseminates throughout
the core trading session on each trading day an updated indicative fund value. The indicative fund value is calculated by using
the prior day&rsquo;s closing NAV per unit of USBO as a base and updating that value throughout the trading day to reflect changes
in the most recently reported trade price for the active Brent crude oil Futures Contracts on the ICE Futures Exchange. The prices
reported for those Futures Contract months are adjusted based on the prior day&rsquo;s spread differential between settlement values
for the relevant contract and the spot month contract. In the event that the spot month contract is also the Benchmark Futures
Contract, the last sale price for that contract is not adjusted. The indicative fund value unit basis disseminated during NYSE
Arca core trading session hours should not be viewed as an actual real time update of the NAV, because the NAV is calculated only
once at the end of each trading day based upon the relevant end of day values of USBO&rsquo;s investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The NYSE Arca disseminates the indicative
fund value through the facilities of CTA/CQ High Speed Lines. In addition, the indicative fund value is published on the NYSE Arca&rsquo;s
website and is available through on-line information services such as Bloomberg and Reuters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Dissemination of the indicative fund value
provides additional information that is not otherwise available to the public and is useful to investors and market professionals
in connection with the trading of USBO units on the NYSE Arca. Investors and market professionals are able throughout the trading
day to compare the market price of USBO and the indicative fund value. If the market price of USBO units diverges significantly
from the indicative fund value, market professionals will have an incentive to execute arbitrage trades. For example, if USBO appears
to be trading at a discount compared to the indicative fund value, a market professional could buy USBO units on the NYSE Arca
and sell short futures contracts. Such arbitrage trades can tighten the tracking between the market price of USBO and the indicative
fund value and thus can be beneficial to all market participants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In addition, other Futures Contracts, Other
Crude Oil-Related Investments and Treasuries held by USBO are valued by the Administrator, using rates and points received from
client-approved third party vendors (such as Reuters and WM Company) and advisor quotes. These investments are not included in
the indicative value. The indicative fund value is based on the prior day&rsquo;s NAV and moves up and down solely according to
changes in the Benchmark Futures Contracts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Creation and Redemption of Units </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO creates and redeems units from time
to time, but only in one or more Creation Baskets or Redemption Baskets. The creation and redemption of baskets are only made in
exchange for delivery to USBO or the distribution by USBO of the amount of Treasuries and any cash represented by the baskets being
created or redeemed, the amount of which is based on the combined NAV of the number of units included in the baskets being created
or redeemed determined after 4:00 p.m. New York time on the day the order to create or redeem baskets is properly received.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Authorized Purchasers are the only persons
that may place orders to create and redeem baskets. Authorized Purchasers must be (1)registered broker-dealers or other securities
market participants, such as banks and other financial institutions, that are not required to register as broker-dealers to engage
in securities transactions described below, and (2) DTC Participants. To become an Authorized Purchaser, a person must enter into
an Authorized Purchaser Agreement with the General Partner. The Authorized Purchaser Agreement provides the procedures for the
creation and redemption of baskets and for the delivery of the Treasuries and any cash required for such creation and redemptions.
The Authorized Purchaser Agreement and the related procedures attached thereto may be amended by USBO, without the consent of any
limited partner or unitholder or Authorized Purchaser. Authorized Purchasers pay a transaction fee of $350 to USBO through May
1, 2014 for each order they place to create or redeem one or more baskets; on and after May 2, 2014, the fee increases to $1,000.
Authorized Purchasers who make deposits with USBO in exchange for baskets receive no fees, commission or other form of compensation
or inducement of any kind from either USBO or the General Partner, and no such person will have any obligation or responsibility
to the General Partner or USBO to effect any sale or resale of units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Certain Authorized Purchasers are expected
to be capable of participating directly in the physical crude oil market and the crude oil futures market. In some cases, Authorized
Purchasers or their affiliates may from time to time buy or sell crude oil or Crude Oil Interests and may profit in these instances.
The General Partner believes that the size and operation of the crude oil market make it unlikely that an Authorized Purchaser&rsquo;s
direct activities in the crude oil or securities markets will significantly affect the price of crude oil, Crude Oil Interests,
Futures Contracts, or the price of the units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Each Authorized Purchaser is required to
be registered as a broker-dealer under the Exchange Act and is a member in good standing with FINRA, or exempt from being or otherwise
not required to be registered as a broker-dealer or a member of FINRA, and qualified to act as a broker or dealer in the states
or other jurisdictions where the nature of its business so requires. Certain Authorized Purchasers may also be regulated under
federal and state banking laws and regulations. Each Authorized Purchaser has its own set of rules and procedures, internal controls
and information barriers as it determines is appropriate in light of its own regulatory regime.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Under the Authorized Purchaser Agreement,
the General Partner has agreed to indemnify the Authorized Purchasers against certain liabilities, including liabilities under
the Securities Act of 1933, as amended, and to contribute to the payments the Authorized Purchasers may be required to make in
respect of those liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The following description of the procedures
for the creation and redemption of baskets is only a summary and an investor should refer to the relevant provisions of the LP
Agreement and the form of Authorized Purchaser Agreement for more detail. The LP Agreement is attached to this prospectus. The
form of the AP Agreement is attached as an exhibit to the registration statement of which this prospectus is a part. See &ldquo;Where
You Can Find More Information&rdquo; for information about where you can obtain the registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Creation Procedures </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">On any business day, an Authorized Purchaser
may place an order with the Marketing Agent to create one or more baskets. For purposes of processing purchase and redemption orders,
a &ldquo;business day&rdquo; means any day other than a day when any of the NYSE Arca, the ICE Futures or the NYSE is closed for
regular trading. Purchase orders must be placed by 12:00 p.m. New York time or the close of regular trading on the NYSE Arca, whichever
is earlier. The day on which the Marketing Agent receives a valid purchase order is referred to as the purchase order date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">By placing a purchase order, an Authorized
Purchaser agrees to deposit Treasuries, cash, or a combination of Treasuries and cash with USBO, as described below. Prior to the
delivery of baskets for a purchase order, the Authorized Purchaser must also have wired to the Custodian the non-refundable transaction
fee due for the purchase order. Authorized Purchasers may not withdraw a creation request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The manner by which creations are made
is dictated by the terms of the Authorized Purchaser Agreement. By placing a purchase order, an Authorized Purchaser agrees to
(1)&nbsp;deposit Treasuries, cash, or a combination of Treasuries and cash with the Custodian of the fund, and (2)&nbsp;if required
by the General Partner in its sole discretion, enter into or arrange for a block trade, an exchange for physical or exchange for
swap, or any other over-the-counter energy transaction (through itself or a designated acceptable broker) with the fund for the
purchase of a number and type of futures contracts at the closing settlement price for such contracts on the purchase order date.
If an Authorized Purchaser fails to consummate (1)&nbsp;and (2), the order shall be cancelled. The number and types of contracts
specified shall be determined by the General Partner, in its sole discretion, to meet USBO&rsquo;s investment objective and shall
be purchased as a result of the Authorized Purchaser&rsquo;s purchase of units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Determination of Required Deposits </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The total deposit required to create each
basket (&ldquo;Creation Basket Deposit&rdquo;) is the amount of Treasuries and/or cash that is in the same proportion to the total
assets of USBO (net of estimated accrued but unpaid fees, expenses and other liabilities) on the purchase order date is accepted
as the number of units to be created under the purchase order is in proportion to the total number of units outstanding on the
purchase order date. The General Partner determines, directly in its sole discretion or in consultation with the Administrator,
the requirements for Treasuries and the amount of cash, including the maximum permitted remaining maturity of a Treasury and proportions
of Treasury and cash that may be included in deposits to create baskets. The Marketing Agent will publish such requirements at
the beginning of each business day. The amount of cash deposit required is the difference between the aggregate market value of
the Treasuries required to be included in a Creation Basket Deposit as of 4:00 p.m. New York time on the date the order to purchase
is properly received and the total required deposit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Delivery of Required Deposits </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">An Authorized Purchaser who places a purchase
order is responsible for transferring to USBO&rsquo;s account with the Custodian the required amount of Treasuries and cash by
the end of the third business day following the purchase order date. Upon receipt of the deposit amount, the Administrator directs
DTC to credit the number of baskets ordered to the Authorized Purchaser&rsquo;s DTC account on the third business day following
the purchase order date. The expense and risk of delivery and ownership of Treasuries until such Treasuries have been received
by the Custodian on behalf of USBO is borne solely by the Authorized Purchaser.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Because orders to purchase baskets must
be placed by 12:00 p.m., New York time, but the total payment required to create a basket during the continuous offering period
will not be determined until after 4:00 p.m. New York time on the date the purchase order is received, Authorized Purchasers will
not know the total amount of the payment required to create a basket at the time they submit an irrevocable purchase order for
the basket. USBO&rsquo;s NAV and the total amount of the payment required to create a basket could rise or fall substantially between
the time an irrevocable purchase order is submitted and the time the amount of the purchase price in respect thereof is determined.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Rejection of Purchase Orders </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner acting by itself or
through the Marketing Agent shall have the absolute right but no obligation to reject a purchase order or a Creation Basket Deposit
if:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>it determines that the investment alternative available to USBO at that time will not enable it to meet its investment objective;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>it determines that the purchase order or the Creation Basket Deposit is not in proper form;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>it believes that the purchase order or the Creation Basket Deposit would have adverse tax consequences to USBO, the limited
partners or the unitholders;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>the acceptance or receipt of the Creation Basket Deposit would, in the opinion of counsel to the General Partner, be unlawful;
or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>circumstances outside the control of the General Partner, Marketing Agent or Custodian make it, for all practical purposes,
not feasible to process creations of baskets.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">None of the General Partner, Marketing
Agent or Custodian will be liable for the rejection of any purchase order or Creation Basket Deposit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Redemption Procedures </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The procedures by which an Authorized Purchaser
can redeem one or more baskets mirror the procedures for the creation of baskets. On any business day, an Authorized Purchaser
may place an order with the Marketing Agent to redeem one or more baskets. Redemption orders must be placed by 12:00 p.m. New York
time or the close of regular trading on the NYSE, whichever is earlier. A redemption order so received will be effective on the
date it is received in satisfactory form by the Marketing Agent. The redemption procedures allow Authorized Purchasers to redeem
baskets and do not entitle an individual unitholder to redeem any units in an amount less than a Redemption Basket, or to redeem
baskets other than through an Authorized Purchaser.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">By placing a redemption order, an Authorized
Purchaser agrees to deliver the baskets to be redeemed through DTC&rsquo;s book-entry system to USBO not later than 3:00 p.m. New
York time on the third business day following the effective date of the redemption order. Prior to the delivery of the redemption
distribution for a redemption order, the Authorized Purchaser must also have wired to USBO&rsquo;s account at the Custodian the
non-refundable transaction fee due for the redemption order. An Authorized Purchaser may not withdraw a redemption order.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The manner by which redemptions are made
is dictated by the terms of the Authorized Purchaser Agreement. By placing a redemption order, an Authorized Purchaser agrees to
(1)&nbsp;deliver the Redemption Basket to be redeemed through DTC&rsquo;s book-entry system to USBO&rsquo;s account with the Custodian
not later than 3:00 p.m. New York time on the third business day following the effective date of the redemption order (&ldquo;Redemption
Distribution Date&rdquo;), and (2)&nbsp;if required by the General Partner in its sole discretion, enter into or arrange for a
block trade, an exchange for physical or exchange for swap, or any other over-the-counter energy transaction (through itself or
a designated acceptable broker) with the fund for the sale of a number and type of futures contracts at the closing settlement
price for such contracts on the Redemption Order Date. If an Authorized Purchaser fails to consummate (1)&nbsp;and (2)&nbsp;above,
the order shall be cancelled. The number and type of contracts specified shall be determined by the General Partner, in its sole
discretion, to meet USBO&rsquo;s investment objective and shall be sold as a result of the Authorized Purchaser&rsquo;s sale of
units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Determination of Redemption Distribution </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The redemption distribution from USBO consists
of a transfer to the redeeming Authorized Purchaser of an amount of Treasuries and cash that is in the same proportion to the total
assets of USBO (net of estimated accrued but unpaid fees, expenses and other liabilities) on the date the order to redeem is properly
received as the number of units to be redeemed under the redemption order is in proportion to the total number of units outstanding
on the date the order is received. The General Partner, directly or in consultation with the Administrator, determines the requirements
for Treasuries and the amounts of cash, including the maximum permitted remaining maturity of a Treasury, and the proportions of
Treasuries and cash that may be included in distributions to redeem baskets. The Marketing Agent will publish an estimate of the
redemption distribution per basket as of the beginning of each business day.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Delivery of Redemption Distribution </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The redemption distribution due from USBO
will be delivered to the Authorized Purchaser by 3:00 p.m. New York time on the third business day following the redemption order
date if, by 3:00 p.m. New York time on such third business day, USBO&rsquo;s DTC account has been credited with the baskets to
be redeemed. If USBO&rsquo;s DTC account has not been credited with all of the baskets to be redeemed by such time, the redemption
distribution will be delivered to the extent of whole baskets received. Any remainder of the redemption distribution will be delivered
on the next business day to the extent of remaining whole baskets received if USBO receives the fee applicable to the extension
of the redemption distribution date which the General Partner may, from time to time, determine and the remaining baskets to be
redeemed are credited to USBO&rsquo;s DTC account by 3:00 p.m. New York time on such next business day. Any further outstanding
amount of the redemption order shall be cancelled. Pursuant to information from the General Partner, the Custodian will also be
authorized to deliver the redemption distribution notwithstanding that the baskets to be redeemed are not credited to USBO&rsquo;s
DTC account by 3:00 p.m. New York time on the third business day following the redemption order date if the Authorized Purchaser
has collateralized its obligation to deliver the baskets through DTC&rsquo;s book entry-system on such terms as the General Partner
may from time to time determine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Suspension or Rejection of Redemption Orders </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner may, in its discretion,
suspend the right of redemption, or postpone the redemption settlement date, (1)&nbsp;for any period during which the NYSE Arca
or the ICE Futures is closed other than customary weekend or holiday closings, or trading on the NYSE Arca or the ICE Futures is
suspended or restricted, (2)&nbsp;for any period during which an emergency exists as a result of which delivery, disposal or evaluation
of Treasuries is not reasonably practicable, or (3)&nbsp;for such other period as the General Partner determines to be necessary
for the protection of the limited partners. For example, the General Partner may determine that it is necessary to suspend redemptions
to allow for the orderly liquidation of USBO&rsquo;s assets at an appropriate value to fund a redemption. If the General Partner
has difficulty liquidating its positions, <I>e.g.</I>, because of a market disruption event in the futures markets, a suspension
of trading by the exchange where the futures contracts are listed or an unanticipated delay in the liquidation of a position in
an over-the-counter contract, it may be appropriate to suspend redemptions until such time as such circumstances are rectified.
None of the General Partner, the Marketing Agent, the Administrator, or the Custodian will be liable to any person or in any way
for any loss or damages that may result from any such suspension or postponement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Redemption orders must be made in whole
baskets. The General Partner will reject a redemption order if the order is not in proper form as described in the Authorized Purchaser
Agreement or if the fulfillment of the order, in the opinion of its counsel, might be unlawful. The General Partner may also reject
a redemption order if the number of units being redeemed would reduce the remaining outstanding units to 100,000 units (<I>i.e.</I>,
two baskets) or less.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Creation and Redemption Transaction Fee </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5pt; text-indent: 22pt; color: #231F20">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5pt; text-indent: 22pt; color: #231F20">To compensate USBO
for its expenses in connection with the creation and redemption of baskets, an Authorized Purchaser is required to pay a transaction
fee to USBO of $350 per order through May 1, 2014 to create or redeem baskets, regardless of the number of baskets in such order;
on and after May 2, 2014, the fee increases to $1,000. The transaction fee may be reduced, increased or otherwise changed by the
General Partner. The General Partner shall notify DTC of any change in the transaction fee and will not implement any increase
in the fee for the redemption of baskets until 30 days after the date of notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Tax Responsibility </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Authorized Purchasers are responsible for
any transfer tax, sales or use tax, stamp tax, recording tax, value added tax or similar tax or governmental charge applicable
to the creation or redemption of baskets, regardless of whether or not such tax or charge is imposed directly on the Authorized
Purchaser, and agree to indemnify the General Partner and USBO if they are required by law to pay any such tax, together with any
applicable penalties, additions to tax and interest thereon.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Secondary Market Transactions </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">As noted, USBO creates and redeems units
from time to time, but only in one or more Creation Baskets or Redemption Baskets. The creation and redemption of baskets are only
made in exchange for delivery to USBO or the distribution by USBO of the amount of Treasuries and cash represented by the baskets
being created or redeemed, the amount of which will be based on the aggregate NAV of the number of units included in the baskets
being created or redeemed determined on the day the order to create or redeem baskets is properly received.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">As discussed above, Authorized Purchasers
are the only persons that may place orders to create and redeem baskets. Authorized Purchasers must be registered broker-dealers
or other securities market participants, such as banks and other financial institutions that are not required to register as broker-dealers
to engage in securities transactions. An Authorized Purchaser is under no obligation to create or redeem baskets, and an Authorized
Purchaser is under no obligation to offer to the public units of any baskets it does create. Authorized Purchasers that do offer
to the public units from the baskets they create will do so at per-unit offering prices that are expected to reflect, among other
factors, the trading price of the units on the NYSE Arca, the NAV of USBO at the time the Authorized Purchaser purchased the Creation
Baskets and the NAV of the units at the time of the offer of the units to the public, the supply of and demand for units at the
time of sale, and the liquidity of the Futures Contract market and the market for Other Crude Oil-Related Investments. The prices
of units offered by Authorized Purchasers are expected to fall between USBO&rsquo;s NAV and the trading price of the units on the
NYSE Arca at the time of sale. Units initially comprising the same basket but offered by Authorized Purchasers to the public at
different times may have different offering prices. An order for one or more baskets may be placed by an Authorized Purchaser on
behalf of multiple clients. Authorized Purchasers who make deposits with USBO in exchange for baskets receive no fees, commissions
or other form of compensation or inducement of any kind from either USBO or the General Partner, and no such person has any obligation
or responsibility to the General Partner or USBO to effect any sale or resale of units. Units trade in the secondary market on
the NYSE Arca. Units may trade in the secondary market at prices that are lower or higher relative to their NAV per unit. The amount
of the discount or premium in the trading price relative to the NAV per unit may be influenced by various factors, including the
number of investors who seek to purchase or sell units in the secondary market and the liquidity of the Futures Contracts market
and the market for Other Crude Oil-Related Investments. While the units trade during the core trading session on the NYSE Arca
until 4:00 p.m. New York time and trading in Futures Contracts on the ICE Futures Exchange continues throughout the entire NYSE
Arca trading day, liquidity in the market for Futures Contracts and Other Crude Oil-Related Investments traded on the NYMEX may
be reduced after the close of the NYMEX at 2:30 p.m. New York time. As a result, during this time, particularly if USBO has invested
in Futures Contracts and Other Crude Oil-Related Investment traded on NYMEX, trading spreads, and the resulting premium or discount,
on the units may widen.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Use of Proceeds </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner causes USBO to transfer
the proceeds from the sale of Creation Baskets to the Custodian or other custodian for trading activities. The General Partner
will invest USBO&rsquo;s Futures Contracts and Other Crude Oil-Related Investments and investments in Treasuries, cash and/or cash
equivalents. When USBO purchases a Futures Contract and certain exchange-traded Other Crude Oil-Related Investments, USBO is required
to deposit 5% to 30% with the selling futures commission merchant on behalf of the exchange a portion of the value of the contract
or other interest as security to ensure payment for the obligation under Crude Oil-Related Interests at maturity. This deposit
is known as initial margin. Counterparties in transactions in over-the-counter Crude Oil-Related Interests will generally impose
similar collateral requirements on USBO. The General Partner will invest the assets that remain after margin and collateral are
posted in Treasuries, cash and/or cash equivalents subject to these margin and collateral requirements. The General Partner has
sole authority to determine the percentage of assets that are:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>held on deposit with the futures commission merchant or other custodian;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>used for other investments; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>held in bank accounts to pay current obligations and as reserves.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Ongoing margin and collateral payments
will generally be required for both exchange-traded and over-the-counter Crude Oil-Related Interests based on changes in the value
of the Crude Oil-Related Interests. Furthermore, ongoing collateral requirements with respect to over-the-counter Crude Oil-Related
Interests are negotiated by the parties, and may be affected by overall market volatility, volatility of the underlying commodity
or index, the ability of the counterparty to hedge its exposure under the Crude Oil-Related Interest, and each party&rsquo;s creditworthiness.
In light of the differing requirements for initial payments under exchange-traded and over-the-counter Crude Oil-Related Interests
and the fluctuating nature of ongoing margin and collateral payments, it is not possible to estimate what portion of USBO&rsquo;s
assets will be posted as margin or collateral at any given time. The Treasuries, cash and cash equivalents held by USBO will constitute
reserves that will be available to meet ongoing margin and collateral requirements. All interest income will be used for USBO&rsquo;s
benefit. The General Partner invests the balance of USBO&rsquo;s assets not invested in Crude Oil-Related Interests or held in
margin as reserves to be available for changes in margin.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">A futures commission merchant, counterparty,
government agency or commodity exchange could increase margin or collateral requirements applicable to USBO to hold trading positions
at any time. Moreover, margin is merely a security deposit and has no bearing on the profit or loss potential for any positions
held.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The assets of USBO posted as margin for
Futures Contracts and over-the-counter contracts will be held in segregation pursuant to the CEA and CFTC regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Limited Partnership Agreement </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The following paragraphs are a summary
of certain provisions of our LP Agreement. The following discussion is qualified in its entirety by reference to our LP Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Authority of the General Partner </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Our General Partner is generally authorized
to perform all acts deemed necessary to carry out the purposes of the limited partnership and to conduct our business. Our partnership
existence will continue into perpetuity, until terminated in accordance with our LP Agreement. Our General Partner has a power
of attorney to take certain actions, including the execution and filing of documents, on our behalf and with respect to our LP
Agreement. However, our partnership agreement limits the authority of our General Partner as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>Other than in connection with the issuance or redemption of units, or upon termination of the partnership as contemplated by
the LP Agreement, the General Partner may not sell, exchange or otherwise dispose of all or substantially all of the partnership&rsquo;s
assets in a single transaction or a series of related transactions (including by way of merger, consolidation or other combination
with any other person) or approve on behalf of the partnership, the sale, exchange or other disposition of all or substantially
all of the assets of all of the partnership, taken as a whole, without the approval of at least a majority of the limited partners;
provided, however, that this provision shall not preclude or limit the General Partner&rsquo;s ability to mortgage, pledge, hypothecate
or grant a security interest in all or substantially all of the partnership&rsquo;s assets and shall not apply to any forced sale
of any or all of the partnership&rsquo;s assets pursuant to the foreclosure of, or other realization upon, any such encumbrance.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>The General Partner is not authorized to institute or initiate on behalf of, or otherwise cause, the partnership to (a)&nbsp;make
a general assignment for the benefit of creditors; (b)&nbsp;file a voluntary bankruptcy petition; or (c)&nbsp;file a petition seeking
for the partnership a reorganization, arrangement, composition, readjustment liquidation, dissolution or similar relief under any
law.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>The General Partner may not, without written approval of the specific act by all of the limited partners or by other written
instrument executed and delivered by all of the limited partners subsequent to the date of the LP Agreement, take any action in
contravention of the LP Agreement, including, without limitation, (i)&nbsp;any act that would make it impossible to carry on the
ordinary business of the partnership, except as otherwise provided in the LP Agreement; (ii)&nbsp;possess partnership property,
or assign any rights in specific partnership property, for other than a partnership purpose; (iii)&nbsp;admit a person as a partner,
except as otherwise provided in the LP Agreement; (iv)&nbsp;amend the LP Agreement in any manner, except as otherwise provided
in the LP Agreement or applicable law; or (v)&nbsp;transfer its interest as General Partner of the partnership, except as otherwise
provided in the LP Agreement.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>In general, unless approved by a majority of the limited partners, our General Partner shall not take any action, or refuse
to take any reasonable action, the effect of which would be to cause us, to the extent it would materially and adversely affect
limited partners, to be taxable as a corporation or to be treated as an association taxable as a corporation for federal income
tax purposes.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Withdrawal or Removal of The General Partner </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner shall be deemed to
have withdrawn from the partnership upon the occurrence of any one of the following events:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>the General Partner voluntarily withdraws from the partnership by giving written notice to the other partners;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>the General Partner transfers all of its rights as General Partner;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>the General Partner is removed;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>the General Partner (A)&nbsp;makes a general assignment for the benefit of creditors; (B)&nbsp;files a voluntary bankruptcy
petition; (C)&nbsp;files a petition or answer seeking for itself a reorganization, arrangement, composition, readjustment liquidation,
dissolution or similar relief under any law; (D)&nbsp;files an answer or other pleading admitting or failing to contest the material
allegations of a petition filed against the General Partner in a proceeding of the type described in clauses (A)&nbsp;&ndash;&nbsp;(C)
of this sentence; or (E)&nbsp;seeks, consents to or acquiesces in the appointment of a trustee, receiver or liquidator of the General
Partner or of all or any substantial part of its properties;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>a final and non-appealable judgment is entered by a court with appropriate jurisdiction ruling that the General Partner is
bankrupt or insolvent or a final and non-appealable order for relief is entered by a court with appropriate jurisdiction against
the General Partner, in each case under any federal or state bankruptcy or insolvency laws as now or hereafter in effect; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>a certificate of dissolution or its equivalent is filed for the General Partner, or 90 days expire after the date of notice
to the General Partner of revocation of its charter without a reinstatement of its charter, under the laws of its state of incorporation.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner may be removed with
or without cause if such removal is approved by the holders of at least 66&nbsp;2/3% of the outstanding units (excluding for this
purpose units held by the General Partner and its affiliates).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Meetings </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">All acts of the limited partners should
be done in accordance with the Delaware Revised Uniform Limited Partnership Act (&ldquo;DRULPA&rdquo;). Upon the written request
of 20% or more in interest of the limited partners, the General Partner may, but is not required to, call a meeting of the limited
partners. Notice of such meeting shall be given within 30 days after, and the meeting shall be held within 60 days after, receipt
of such request. The General Partner may also call a meeting not less than 20 and not more than 60 days prior to the meeting. Any
such notice shall state briefly the purpose of the meeting, which shall be held at a reasonable time and place. Any limited partner
may obtain a list of names, addresses, and interests of the limited partners upon written request to the General Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Limited Liability </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Assuming that a limited partner does not
take part in the control of our business, and that he otherwise acts in conformity with the provisions of our LP Agreement, his
liability under Delaware law will be limited, subject to certain possible exceptions, generally to the amount of capital he is
obligated to contribute to us in respect of his units or other limited partner interests plus his share of any of our undistributed
profits and assets. In light of the fact that a limited partner&rsquo;s liability may extend beyond his capital contributions,
a limited partner may lose more money than he contributed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Under Delaware law, a limited partner might
be held liable for USBO&rsquo;s obligations as if it were a General Partner if the limited partner participates in the control
of the partnership&rsquo;s business and the persons who transact business with the partnership think the limited partner is the
General Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Under the LP Agreement, a limited partner
will not be liable for assessments in addition to its initial capital investment in any of USBO&rsquo;s capital securities representing
limited partnership interests. However, a limited partner still may be required to repay to USBO any amounts wrongfully returned
or distributed to it under some circumstances. Under Delaware law, USBO may not make a distribution to limited partners if the
distribution causes USBO&rsquo;s liabilities (other than liabilities to partners on account of their partnership interests and
nonrecourse liabilities) to exceed the fair value of USBO&rsquo;s assets. Delaware law provides that a limited partner who receives
such a distribution and knew at the time of the distribution that the distribution violated the law will be liable to the limited
partnership for the amount of the distribution for three years from the date of the distribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The General Partner Has Conflicts of Interest </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">There are present and potential future
conflicts of interest in USBO&rsquo;s structure and operation you should consider before you purchase units. The General Partner
will use this notice of conflicts as a defense against any claim or other proceeding made. If the General Partner is not able to
resolve these conflicts of interest adequately, it may impact USBO&rsquo;s and the Related Public Funds&rsquo; ability to achieve
their investment objectives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO and the General Partner may have inherent
conflicts to the extent the General Partner attempts to maintain USBO&rsquo;s asset size in order to preserve its fee income and
this may not always be consistent with USBO&rsquo;s objective of having the value of its unit&rsquo;s NAV track changes in the
price of the Benchmark Future Contract.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner&rsquo;s officers, directors
and employees, do not devote their time exclusively to USBO. These persons are directors, officers or employees of other entities
which may compete with USBO for their services. They could have a conflict between their responsibilities to USBO and to those
other entities. The General Partner believes that it has sufficient personnel, time, and working capital to discharge its responsibilities
in a fair manner and that these persons&rsquo; conflicts should not impair their ability to provide services to USBO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner and the General Partner&rsquo;s
principals, officers, directors and employees may trade futures and related contracts for their own account. Limited partners and
other unitholders are not permitted to inspect the trading records or any written policies related to such trading of the General
Partner and its principals, officers, directors, and employees. A conflict of interest may exist if their trades are in the same
markets and at the same time as USBO trades using the clearing broker to be used by USBO. A potential conflict also may occur when
the General Partner&rsquo;s principals trade their accounts more aggressively or take positions in their accounts which are opposite,
or ahead of, the positions taken by USBO. The General Partner has adopted a Code of Business Conduct and Ethics to ensure that
the officers, directors, and employees of the General Partner and its affiliates do not engage in trades that will harm the fund
or the unitholders. The General Partner has also adopted Corporate Governance Guidelines. If these provisions are not successful,
unitholders may be harmed in that such trades could affect the prices of the futures contracts purchased by USBO which could affect
USBO&rsquo;s ability to track the Benchmark Futures Contract. The Code of Business Conduct and Ethics, and the Corporate Governance
Guidelines may be found on USBO&rsquo;s website at <I>www.unitedstatesbrentoilfund.com</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner has sole current authority
to manage the investments and operations of USBO, and this may allow it to act in a way that furthers its own interests which may
create a conflict with your best interests. Limited partners have limited voting control, which will limit their ability to influence
matters such as amendment of the LP Agreement, change in USBO&rsquo;s basic investment policy, dissolution of USBO, or the sale
or distribution of USBO&rsquo;s assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner serves as the general
partner to USBO and the Related Public Funds, as well as of other funds that have yet to offer securities to the public or begin
operations. The General Partner may have a conflict to the extent that its trading decisions for USBO may be influenced by the
effect they would have on the other funds it manages. By way of example, if, as a result of reaching position limits imposed by
the ICE Futures Exchange on Brent Crude Oil Futures Contracts (or otherwise), the General Partner might determine that there would
be potential benefits in purchasing instead another type of petroleum-based futures contract, such as gasoline futures contracts.
However, the General Partner might be disinclined to purchase gasoline futures contracts, this decision could impact its ability
to purchase additional gasoline futures contracts for USBO if adversely doing so would be due to applicability position limits
for other Related Public Funds (such as the United States Gasoline Fund, LP). In addition, the General Partner is required to indemnify
the officers and directors of the other funds, if the need for indemnification arises. This potential indemnification will cause
the General Partner&rsquo;s assets to decrease. If the General Partner&rsquo;s other sources of income are not sufficient to compensate
for the indemnification, then the General Partner may terminate and you could lose your investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>No Resolution of Conflicts Procedures </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Whenever a conflict of interest exists
or arises between the General Partner on the one hand, and the partnership or any limited partner, on the other hand, any resolution
or course of action by the General Partner in respect of such conflict of interest shall be permitted and deemed approved by all
partners and shall not constitute a breach of the LP Agreement or of any agreement contemplated hereby or of a duty stated or implied
by law or equity, if the resolution or course of action is, or by operation of the LP Agreement is deemed to be, fair and reasonable
to the partnership. If a dispute arises, under the LP Agreement it will be resolved either through negotiations with the General
Partner or by courts located in the State of Delaware.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Under the LP Agreement, any resolution
is deemed to be fair and reasonable to the partnership if the resolution is:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>approved by the audit committee, although no party is obligated to seek approval and the General Partner may adopt a resolution
or course of action that has not received approval;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>on terms no less favorable to the limited partners than those generally being provided to or available from unrelated third
parties; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>fair to the limited partners, taking into account the totality of the relationships of the parties involved including other
transactions that may be particularly favorable or advantageous to the limited partners.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The previous risk factors and conflicts
of interest are complete as of the date of this prospectus; however, additional risks and conflicts may occur which are not presently
foreseen by the General Partner. You may not construe this prospectus as legal or tax advice. Before making an investment in this
fund, you should read this entire prospectus, including the LP Agreement (Appendix B). You should also consult with your personal
legal, tax, and other professional advisors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Interests of Named Experts and Counsel </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner has engaged Reed Smith
LLP to assist in the preparation of this prospectus. Neither the law firm nor any other expert hired by USBO to give advice on
the preparation of this offering document has been hired on a contingent fee basis. Nor does any of them have any present or future
expectation of interest in the General Partner, Marketing Agent, Authorized Purchasers, Custodian, Administrator or other service
providers to USBO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The General Partner&rsquo;s Responsibilities and Remedies
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Pursuant to the DRULPA, parties may contractually
modify or even eliminate fiduciary duties in a limited partnership agreement to the limited partnership itself, or to another partner
or person otherwise bound by the limited partnership agreement. Parties may not, however, eliminate the implied covenant of good
faith and fair dealing. Where parties unambiguously provide for fiduciary duties in a limited partnership agreement, those expressed
duties become the standard that courts will use to determine whether such duties were breached. For this reason, USBO&rsquo;s limited
partnership agreement does not explicitly provide for any fiduciary duties so that common law fiduciary duty principles will apply
to measure the General Partner&rsquo;s conduct.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">A prospective investor should be aware
that the General Partner has a responsibility to limited partners of USBO to exercise good faith and fairness in all dealings.
The fiduciary responsibility of a general partner to limited partners is a developing and changing area of the law and limited
partners who have questions concerning the duties of the General Partner should consult with their counsel. In the event that a
limited partner of USBO believes that the General Partner has violated its fiduciary duty to the limited partners, he may seek
legal relief individually or on behalf of USBO under applicable laws, including under DRULPA and under commodities laws, to recover
damages from or require an accounting by the General Partner. Limited partners may also have the right, subject to applicable procedural
and jurisdictional requirements, to bring class actions in federal court to enforce their rights under the federal securities laws
and the rules and regulations promulgated thereunder by the SEC. Limited partners who have suffered losses in connection with the
purchase or sale of the units may be able to recover such losses from the General Partner where the losses result from a violation
by the General Partner of the federal securities laws. State securities laws may also provide certain remedies to limited partners.
Limited partners should be aware that performance by the General Partner of its fiduciary duty is measured by the terms of the
LP Agreement as well as applicable law. Limited partners are afforded certain rights to institute reparations proceedings under
the CEA for violations of the CEA or of any rule, regulation or order of the CFTC by the General Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Liability and Indemnification </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Under the LP Agreement, neither a General
Partner nor any employee or other agent of USBO nor any officer, director, stockholder, partner, employee or agent of a General
Partner (a &ldquo;Protected Person&rdquo;) shall be liable to any partner or USBO for any mistake of judgment or for any action
or inaction taken, nor for any losses due to any mistake of judgment or to any action or inaction or to the negligence, dishonesty
or bad faith of any officer, director, stockholder, partner, employee, agent of USBO or any officer, director, stockholder, partner,
employee or agent of such General Partner, provided that such officer, director, stockholder, partner, employee, or agent of the
partner or officer, director, stockholder, partner, employee or agent of such General Partner was selected, engaged or retained
by such General Partner with reasonable care, except with respect to any matter as to which such General Partner shall have been
finally adjudicated in any action, suit or other proceeding not to have acted in good faith in the reasonable belief that such
Protected Person&rsquo;s action was in the best interests of USBO and except that no Protected Person shall be relieved of any
liability to which such Protected Person would otherwise be subject by reason of willful misfeasance, gross negligence or reckless
disregard of the duties involved in the conduct of the Protected Person&rsquo;s office.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO shall, to the fullest extent permitted
by law, but only out of USBO assets, indemnify and hold harmless a General Partner and each officer, director, stockholder, partner,
employee or agent thereof (including persons who serve at USBO&rsquo;s request as directors, officers or trustees of another organization
in which USBO has an interest as a unitholder, creditor or otherwise) and their respective Legal Representatives and successors
(hereinafter referred to as a &ldquo;Covered Person&rdquo; against all liabilities and expenses, including but not limited to amounts
paid in satisfaction of judgments, in compromise or as fines and penalties, and counsel fees reasonably incurred by any Covered
Person in connection with the defense or disposition of any action, suit or other proceedings, whether civil or criminal, before
any court or administrative or legislative body, in which such Covered Person may be or may have been involved as a party or otherwise
or with which such person may be or may have been threatened, while in office or thereafter, by reason of an alleged act or omission
as a General Partner or director or officer thereof, or by reason of its being or having been such a General Partner, director
or officer, except with respect to any matter as to which such Covered Person shall have been finally adjudicated in any such action,
suit or other proceeding not to have acted in good faith in the reasonable belief that such Covered Person&rsquo;s action was in
the best interest of USBO, and except that no Covered Person shall be indemnified against any liability to USBO or limited partners
to which such Covered Person would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless
disregard of the duties involved in the conduct of such Covered Person&rsquo;s office. Expenses, including counsel fees so incurred
by any such Covered Person, may be paid from time to time by USBO in advance of the final disposition of any such action, suit
or proceeding on the condition that the amounts so paid shall be repaid to USBO if it is ultimately determined that the indemnification
of such expenses is not authorized hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Provisions of Law </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">According to applicable law, indemnification
of the General Partner is payable only if the General Partner determined, in good faith, that the act, omission or conduct that
gave rise to the claim for indemnification was in the best interest of USBO and the act, omission or activity that was the basis
for such loss, liability, damage, cost or expense was not the result of negligence or misconduct and such liability or loss was
not the result of negligence or misconduct by the General Partner, and such indemnification or agreement to hold harmless is recoverable
only out of the assets of USBO and not from the members, individually.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Provisions of Federal and State Securities Laws </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">This offering is made pursuant to federal
and state securities laws. The SEC and state securities agencies take the position that indemnification of the General Partner
that arises out of an alleged violation of such laws is prohibited unless certain conditions are met.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Those conditions require that no indemnification
of the General Partner or any underwriter for USBO may be made in respect of any losses, liabilities or expenses arising from or
out of an alleged violation of federal or state securities laws unless: (i)&nbsp;there has been a successful adjudication on the
merits of each count involving alleged securities law violations as to the party seeking indemnification and the court approves
the indemnification; (ii)&nbsp;such claim has been dismissed with prejudice on the merits by a court of competent jurisdiction
as to the party seeking indemnification; or (iii)&nbsp;a court of competent jurisdiction approves a settlement of the claims against
the party seeking indemnification and finds that indemnification of the settlement and related costs should be made, provided that,
before seeking such approval, the General Partner or other indemnitee must apprise the court of the position held by regulatory
agencies against such indemnification. These agencies are the SEC and the securities administrator of the State or States in which
the plaintiffs claim they were offered or sold membership interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Provisions of the Securities Act of 1933 and NASAA Guidelines
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Insofar as indemnification for liabilities
arising under the Securities Act of 1933 may be permitted to the General Partner or its directors, officers, or persons controlling
USBO, USBO has been informed that SEC and the various State administrators believe that such indemnification is against public
policy as expressed in the Securities Act of 1933 and the North American Securities Administrators Association, Inc. (&ldquo;NASAA&rdquo;)
commodity pool guidelines and is therefore unenforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Books and Records </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO keeps its books of record and account
at its office located at 1999 Harrison Street, Suite 1530, Oakland, California 94612 or at the offices of the Administrator at
its office located at 40 Water Street, Boston, Massachusetts, 02109, or such office, including of an administrative agent, as it
may subsequently designate upon notice. These books and records are open to inspection by any person who establishes to USBO&rsquo;s
satisfaction that such person is a limited partner upon reasonable advance notice at all reasonable times during the usual business
hours of USBO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO keeps a copy of USBO&rsquo;s LP Agreement
on file in its office which is available for inspection on reasonable advance notice at all reasonable times during its usual business
hours by any limited partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Analysis of Critical Accounting Policies </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO&rsquo;s critical accounting policies
are forth in the financial statements that are incorporated by reference in this prospectus are prepared in accordance with accounting
principles generally accepted in the United States of America, which require the use of certain accounting policies that affect
the amounts reported in these financial statements, including the following: USBO trades are accounted for on a trade-date basis
and marked to market on a daily basis. The difference between their cost and market value is recorded as &ldquo;change in unrealized
profit/loss&rdquo; for open (unrealized) contracts, and recorded as &ldquo;realized profit/loss&rdquo; when open positions are
closed out; the sum of these amounts constitutes USBO&rsquo;s trading revenues. Earned interest income revenue, as well as management
fee, and brokerage fee expenses of USBO are recorded on an accrual basis. The General Partner believes that all relevant accounting
assumptions and policies have been considered.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Statements, Filings, and Reports </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">At the end of each fiscal year, USBO will
furnish to DTC Participants for distribution to each person who is a unitholder at the end of the fiscal year an annual report
containing USBO&rsquo;s audited financial statements and other information about USBO. The General Partner is responsible for the
registration and qualification of the units under the federal securities laws and federal commodities laws and any other securities
and blue sky laws of the United States or any other jurisdiction as the General Partner may select. The General Partner is responsible
for preparing all reports required by the SEC, CFTC, and the NYSE Arca but has entered into an agreement with the Administrator
to prepare these reports as required by the SEC, CFTC and the NYSE Arca on USBO&rsquo;s behalf.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The financial statements of USBO will be
audited, as required by law and as may be directed by the General Partner, by an independent registered public accounting firm
designated from time to time by the General Partner. The accountants report will be furnished by USBO to unitholders upon request.
USBO will make such elections, file such tax returns, and prepare, disseminate and file such tax reports, as it is advised by its
counsel or accountants are from time to time required by any applicable statute, rule or regulation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Reports to Limited Partners </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In addition to periodic reports filed with
the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, all of which can
be accessed on the SEC&rsquo;s website at <I>www.sec.gov</I> or on USBO&rsquo;s website at <I>www.unitedstatesbrentoilfund.com,</I>
USBO, pursuant to the LP Agreement, will provide the following reports to limited partners in the manner prescribed below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Annual Reports</I>.&nbsp;Within 90 days
after the end of each fiscal year, the General Partner shall cause to be delivered to each limited partner who was a limited partner
at any time during the fiscal year, an annual report containing the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(i)</TD><TD>financial statements of the partnership, including, without limitation, a balance sheet as of the end of the partnership&rsquo;s
fiscal year and statements of income, partners&rsquo; equity and changes in financial position, for such fiscal year, which shall
be prepared in accordance with accounting principles generally accepted in the United States of America consistently applied and
shall be audited by a firm of independent certified public accountants registered with the Public Company Accounting Oversight
Board;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(ii)</TD><TD>a general description of the activities of the partnership during the period covered by the report; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(iii)</TD><TD>a report of any material transactions between the partnership and the General Partner or any of its affiliates, including fees
or compensation paid by the partnership and the services performed by the General Partner or any such affiliate for such fees or
compensation.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Quarterly Reports</I>.&nbsp;Within 45
days after the end of each quarter of each fiscal year, the General Partner shall cause to be delivered to each limited partner
who was a limited partner at any time during the quarter then ended, a quarterly report containing a balance sheet and statement
of income for the period covered by the report, each of which may be unaudited but shall be certified by the General Partner as
fairly presenting the financial position and results of operations of the partnership during the period covered by the report.
The report shall also contain a description of any material event regarding the business of the partnership during the period covered
by the report.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Monthly Reports</I>.&nbsp;Within 30
days after the end of each month, the General Partner shall cause to be posted on its website and upon request, to be delivered
to each limited partner who was a limited partner at any time during the month then ended, a monthly report containing an account
statement, which will include a statement of income (loss) and a statement of changes in NAV, for the prescribed period. In addition,
the account statement will disclose any material business dealings between the partnership, General Partner, commodity trading
advisor (if any), futures commission merchant, or the principals thereof that previously have not been disclosed in this prospectus
or any amendment thereto, other account statements or annual reports.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO will provide information to its unitholders
to the extent required by applicable SEC, CFTC, and NYSE Arca requirements. An issuer, such as USBO, of exchange-traded securities
may not always readily know the identities of the investors who own those securities. USBO will post the same information that
would otherwise be provided in USBO&rsquo;s reports to limited partners described above including its monthly account statements,
which will include, without limitation, USBO&rsquo;s NAV, on USBO&rsquo;s website <I>www.unitedstatesbrentoilfund.com</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Fiscal Year </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The fiscal year of USBO is the calendar
year. The General Partner may select an alternate fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Governing Law; Consent to Delaware Jurisdiction </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The rights of the General Partner, USBO,
DTC (as registered owner of USBO&rsquo;s global certificate for units) and the unitholders, are governed by the laws of the State
of Delaware. The General Partner, USBO and DTC and, by accepting units, each DTC Participant and each unitholder, consent to the
jurisdiction of the courts of the State of Delaware and any federal courts located in Delaware. Such consent is not required for
any person to assert a claim of Delaware jurisdiction over the General Partner or USBO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Security Ownership of Principal Unitholders and Management
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">None of the directors or executive officers
of the General Partner, nor the employees of USBO own any units of USBO. In addition, USBO is not aware of any 5% holder of its
units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Legal Matters </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Litigation and Claims </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Within the past 5 years of the date of
this prospectus, there have been no material administrative, civil or criminal actions against the General Partner, underwriter,
or any principal or affiliate of either of them. This includes any actions pending, on appeal, concluded, threatened, or otherwise
known to them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Legal Opinion </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Reed Smith LLP is counsel to advise USBO
and the General Partner with respect to the preparation of units being offered hereby and has passed upon the validity of the units
being issued hereunder. Reed Smith LLP has also provided the General Partner with its opinion with respect to federal income tax
matters addressed herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Experts </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Spicer Jeffries LLP, an independent registered
public accounting firm, has audited the financial statements of United States Brent Oil Fund, LP, at December 31, 2012, 2011 and
2010 that appear in the annual report on Form 10-K that is incorporated by reference. The financial statements in the 10-K were
included herein in reliance upon the report of March __, 2013 given on its authority of such firm as experts in accounting and
auditing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Privacy Policy </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO and the General Partner may collect
or have access to certain nonpublic personal information about current and former investors. Nonpublic personal information may
include information received from investors, such as an investor&rsquo;s name, social security number and address, as well as information
received from brokerage firms about investor holdings and transactions in units of USBO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO and the General Partner do not disclose
nonpublic personal information except as required by law or as described in their Privacy Policy. In general, USBO and the General
Partner restrict access to the nonpublic personal information they collect about investors to those of their and their affiliates&rsquo;
employees and service providers who need access to such information to provide products and services to investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO and the General Partner maintain safeguards
that comply with federal law to protect investors&rsquo; nonpublic personal information. These safeguards are reasonably designed
to (1)&nbsp;ensure the security and confidentiality of investors&rsquo; records and information, (2)&nbsp;protect against any anticipated
threats or hazards to the security or integrity of investors&rsquo; records and information, and (3)&nbsp;protect against unauthorized
access to or use of investors&rsquo; records or information that could result in substantial harm or inconvenience to any investor.
Third-party service providers with whom USBO and the General Partner share nonpublic personal information about investors must
agree to follow appropriate standards of security and confidentiality, which includes safeguarding such nonpublic personal information
physically, electronically and procedurally.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">A copy of USBO and the General Partner&rsquo;s
current Privacy Policy is provided to investors annually and is also available upon request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>U.S. Federal Income Tax Considerations </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The following discussion summarizes the
material U.S. federal income tax consequences of the purchase, ownership and disposition of units in USBO, and the U.S. federal
income tax treatment of USBO, as of the date hereof. This discussion is applicable to a beneficial owner of units who purchases
units in the offering to which this prospectus relates, including a beneficial owner who purchases units from an Authorized Purchaser.
Except where noted otherwise, it deals only with units held as capital assets and does not deal with special situations, such as
those of dealers in securities or currencies, financial institutions, tax-exempt entities, insurance companies, persons holding
units as a part of a position in a &ldquo;straddle&rdquo; or as part of a &ldquo;hedging,&rdquo; &ldquo;conversion&rdquo; or other
integrated transaction for U.S. federal income tax purposes, traders in securities or commodities that elect to use a mark-to-market
method of accounting, or holders of units whose &ldquo;functional currency&rdquo; is not the U.S. dollar. Furthermore, the discussion
below is based upon the provisions of the Internal Revenue Code of 1986, as amended (the &ldquo;Code&rdquo;), and regulations (&ldquo;Treasury
Regulations&rdquo;), rulings and judicial decisions thereunder as of the date hereof, and such authorities may be repealed, revoked
or modified so as to result in U.S. federal income tax consequences different from those discussed below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Persons considering the purchase, ownership
or disposition of units should consult their own tax advisors concerning the U.S. federal income tax consequences in light of their
particular situations as well as any consequences arising under the laws of any other taxing jurisdiction. As used herein, a &ldquo;U.S.
unitholder&rdquo; of a unit means a beneficial owner of a unit that is, for U.S. federal income tax purposes, (i)&nbsp;a citizen
or resident of the United States, (ii)&nbsp;a corporation or partnership created or organized in or under the laws of the United
States or any political subdivision thereof, (iii)&nbsp;an estate the income of which is subject to U.S. federal income taxation
regardless of its source or (iv)&nbsp;a trust (X)&nbsp;that is subject to the supervision of a court within the United States and
the control of one or more United States persons as described in section 7701(a)(30) of the Code or (Y)&nbsp;that has a valid election
in effect under applicable Treasury Regulations to be treated as a United States person. A &ldquo;Non-U.S. unitholder&rdquo; is
a holder that is not a U.S. unitholder. If a partnership holds our units, the tax treatment of a partner will generally depend
upon the status of the partner and the activities of the partnership. If you are a partner of a partnership holding our units,
you should consult your own tax advisor regarding the tax consequences.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner of USBO has received
the opinion of Reed Smith LLP, counsel to USBO, that the material U.S. federal income tax consequences to USBO and to U.S. unitholders
and Non-U.S. unitholders will be as described below. In rendering its opinion, Reed Smith LLP has relied on the facts described
in this prospectus as well as certain factual representations made by USBO and the General Partner. The opinion of Reed Smith LLP
is not binding on the Internal Revenue Service (&ldquo;IRS&rdquo;), and as a result, the IRS may not agree with the tax positions
taken by USBO. If challenged by the IRS, USBO&rsquo;s tax positions might not be sustained by the courts. No ruling has been requested
from the IRS with respect to any matter affecting USBO or prospective investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">EACH PROSPECTIVE INVESTOR IS ADVISED TO
CONSULT ITS OWN TAX ADVISOR AS TO HOW THE U.S. FEDERAL INCOME TAX CONSEQUENCES OF AN INVESTMENT IN USBO APPLY TO YOU AND AS TO
HOW THE APPLICABLE STATE, LOCAL OR FOREIGN TAXES APPLY TO YOU.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Tax Status of USBO </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO is organized and operates as a limited
partnership in accordance with the provisions of the LP Agreement and applicable state law. Under the Code, an entity classified
as a partnership that is deemed to be a &ldquo;publicly traded partnership&rdquo; is generally taxable as a corporation for U.S.
federal income tax purposes. The Code provides an exception to this general rule for a publicly traded partnership whose gross
income for each taxable year of its existence consists of at least 90% &ldquo;qualifying income&rdquo; (&ldquo;qualifying income
exception&rdquo;). For this purpose, section 7704 defines &ldquo;qualifying income&rdquo; as including, in pertinent part, interest
(other than from a financial business), dividends and gains from the sale or disposition of capital assets held for the production
of interest or dividends. In addition, in the case of a partnership a principal activity of which is the buying and selling of
commodities (other than as inventory) or of futures, forwards and options with respect to commodities, &ldquo;qualifying income&rdquo;
includes income and gains from such commodities and futures, forwards and options with respect to commodities. USBO and the General
Partner have represented the following to Reed Smith LLP:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>At least 90% of USBO&rsquo;s gross income for each taxable year will constitute &ldquo;qualifying income&rdquo; within the
meaning of Code section 7704 (as described above);</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>USBO will be organized and operated in accordance with its governing agreements and applicable law;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>USBO has not elected, and will not elect, to be classified as a corporation for U.S. federal income tax purposes.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Based in part on these representations,
Reed Smith LLP is of the opinion that USBO classifies as a partnership for U.S. federal income tax purposes and that it is not
taxable as a corporation for such purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">If USBO failed to satisfy the qualifying
income exception in any year, other than a failure that is determined by the IRS to be inadvertent and that is cured within a reasonable
time after discovery, USBO would be taxable as a corporation for U.S. federal income tax purposes and would pay U.S. federal income
tax on its income at regular corporate rates. In that event, unitholders would not report their share of USBO&rsquo;s income or
loss on their returns. In addition, distributions to unitholders would be treated as dividend income to the extent of USBO&rsquo;s
current and accumulated earnings and profits. To the extent a distribution exceeded USBO&rsquo;s earnings and profits, the distribution
would be treated as a return of capital to the extent of a unitholder&rsquo;s basis in its units, and thereafter as gain from the
sale of units. Accordingly, if USBO were to be taxable as a corporation, it would likely have a material adverse effect on the
economic return from an investment in USBO and on the value of the units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The remainder of this summary assumes that
USBO is classified as a partnership for U.S. federal income tax purposes and that it is not taxable as a corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.2pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.2pt"><B><I>U.S. Unitholders </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Tax Consequences of Ownership of Units </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Taxation of USBO&rsquo;s Income</I>.&nbsp;No
U.S. federal income tax is paid by USBO on its income. Instead, USBO files annual information returns, and each U.S. unitholder
is required to report on its U.S. federal income tax return its allocable share of the income, gain, loss and deduction of USBO.
For example, unitholders must take into account their share of ordinary income realized by USBO from accruals of interest on Treasuries
and other investments, and their share of gain from Futures Contracts and Other Crude Oil-Related Investments. These items must
be reported without regard to the amount (if any) of cash or property the unitholder receives as a distribution from USBO during
the taxable year. Consequently, a unitholder may be allocated income or gain by USBO but receive no cash distribution with which
to pay its tax liability resulting from the allocation, or may receive a distribution that is insufficient to pay such liability.
Because the General Partner currently does not intend to make distributions, it is likely that in any year USBO realizes net income
and/or gain that a U.S. unitholder will be required to pay taxes on its allocable share of such income or gain from sources other
than USBO distributions. In addition, for taxable years beginning after December&nbsp;31, 2012, individuals with income in excess
of $200,000 ($250,000 in the case of married individuals filing jointly) and certain estates and trusts are subject to an additional
3.8% tax on their &ldquo;net investment income,&rdquo; which generally includes net income from interest, dividends, annuities,
royalties, and rents, and net capital gains (other than certain amounts earned from trades or businesses).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Allocations of USBO&rsquo;s Profit and
Loss</I>.&nbsp;Under Code section 704, the determination of a partner&rsquo;s distributive share of any item of income, gain, loss,
deduction or credit is governed by the applicable organizational document unless the allocation provided by such document lacks
&ldquo;substantial economic effect.&rdquo; An allocation that lacks substantial economic effect nonetheless will be respected if
it is in accordance with the partners&rsquo; interests in the partnership, determined by taking into account all facts and circumstances
relating to the economic arrangements among the partners.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In general, USBO applies a monthly closing-of-the-books
convention in determining allocations of economic profit or loss to unitholders. Income, gain, loss and deduction are determined
on a monthly &ldquo;mark-to-market&rdquo; basis, taking into account our accrued income and deductions and realized and unrealized
gains and losses for the month. These items are allocated among the holders of units in proportion to the number of units owned
by them as of the close of business on the last business day of the month. Items of taxable income, deduction, gain, loss and credit
recognized by USBO for U.S. federal income tax purposes for any taxable year will be allocated among holders in a manner that equitably
reflects the allocation of economic profit or loss. USBO has made the election permitted by section 754 of the Code, which election
is irrevocable without the consent of the Service. The effect of this election is that when a secondary market sale of our units
occur, we adjust the purchaser&rsquo;s proportionate share of the tax basis of our assets to fair market value, as reflected in
the price paid for the units, as if the purchaser had directly acquired an interest in our assets. The section 754 election is
intended to eliminate disparities between a partner&rsquo;s basis in its partnership interest and its share of the tax bases of
the partnership&rsquo;s assets, so that the partner&rsquo;s allocable share of taxable gain or loss on a disposition of an asset
will correspond to its share of the appreciation or depreciation in the value of the asset since it acquired its interest. Depending
on the price paid for units and the tax bases of USBO&rsquo;s assets at the time of the purchase, the effect of the section 754
election on a purchaser of units may be favorable or unfavorable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO applies certain assumptions and conventions
in determining and allocating items for tax purposes in order to reduce the complexity and costs of administration. The General
Partner believes that application of these assumptions and conventions is consistent with the intent of the partnership provisions
of the Code, and that the resulting allocations have substantial economic effect or otherwise are respected as being in accordance
with unitholders&rsquo; interests in USBO for U.S. federal income tax purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">However, the Code and Treasury Regulations
do not expressly permit adoption of these assumptions and conventions, and Reed Smith LLP is therefore unable to opine on the validity
of our allocation method. It is possible that the IRS could successfully challenge this method and require a unitholder to report
a greater or lesser share of items of income, gain, loss, deduction, or credit than if our method were respected. The General Partner
is authorized to revise our allocation method to conform to any method permitted under future Treasury Regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The assumptions and conventions used in
making tax allocations may cause a unitholder to be allocated more or less income or loss for U.S. federal income tax purposes
than its proportionate share of the economic income or loss realized by USBO during the period it held its units. This &ldquo;mismatch&rdquo;
between taxable and economic income or loss in some cases may be temporary, reversing itself in a later year when the units are
sold, but could be permanent. For example, a unitholder could be allocated income accruing before it purchased its units, resulting
in an increase in the basis of the units (see &ldquo;<I>Tax Basis of Units</I>&rdquo;, below). On a subsequent disposition of the
units, the additional basis might produce a capital loss the deduction of which may be limited (see &ldquo;Limitations on Deductibility
of Losses and Certain Expenses&rdquo;, below).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Mark to Market of Certain Exchange-Traded
Contracts</I>.&nbsp;For U.S. federal income tax purposes, USBO generally is required to use a &ldquo;mark-to-market&rdquo; method
of accounting under which unrealized gains and losses on instruments constituting &ldquo;section 1256 contracts&rdquo; are recognized
currently. A section 1256 contract is defined as: (1)&nbsp;a futures contract that is traded on or subject to the rules of a national
securities exchange which is registered with the SEC, a domestic board of trade designated as a contract market by the CFTC, or
any other board of trade or exchange designated by the Secretary of the Treasury, and with respect to which the amount required
to be deposited and the amount that may be withdrawn depends on a system of &ldquo;marking to market&rdquo;; (2)&nbsp;a forward
contract on exchange-traded foreign currencies, where the contracts are traded in the interbank market; (3)&nbsp;a non-equity option
traded on or subject to the rules of a qualified board or exchange; (4)&nbsp;a dealer equity option; or (5)&nbsp;a dealer securities
futures contract.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Under these rules, section 1256 contracts
held by USBO at the end of each taxable year, including for example Futures Contracts and options on Futures Contracts traded on
a U.S. exchange or board of trade or certain foreign exchanges, are treated as if they were sold by USBO for their fair market
value on the last business day of the taxable year. A unitholder&rsquo;s distributive share of USBO&rsquo;s net gain or loss with
respect to each section 1256 contract generally is treated as long-term capital gain or loss to the extent of 60 percent thereof,
and as short-term capital gain or loss to the extent of 40 percent thereof, without regard to the actual holding period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Many of USBO&rsquo;s Futures Contracts
and some their other commodity interests will qualify as &ldquo;section 1256 contracts&rdquo; under the Code. Gain or loss recognized
through disposition, termination or marking-to-market of USBO&rsquo;s section 1256 contracts will be subject to 60-40 treatment
and allocated to unitholders in accordance with the monthly allocation convention. Under recently enacted legislation, cleared
swaps and other commodity swaps will most likely not qualify as section 1256 contracts. If a commodity swap is not treated as a
section 1256 contract, any gain or loss on the swap recognized at the time of disposition or termination will be long-term or short-term
capital gain or loss depending on the holding period of the swap.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Limitations on Deductibility of Losses
and Certain Expenses</I>.&nbsp;A number of different provisions of the Code may defer or disallow the deduction of losses or expenses
allocated to you by USBO, including but not limited to those described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">A unitholder&rsquo;s deduction of its allocable
share of any loss of USBO will be limited to the lesser of (1)&nbsp;the tax basis in its units or (2)&nbsp;in the case of a unitholder
that is an individual or a closely held corporation, the amount which the unitholder is considered to have &ldquo;at risk&rdquo;
with respect to our activities. In general, the amount at risk will be your invested capital plus your share of any recourse debt
of USBO for which you are liable. Losses in excess of the amount at risk must be deferred until years in which USBO generates additional
taxable income against which to offset such carryover losses or until additional capital is placed at risk.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Noncorporate taxpayers are permitted to
deduct capital losses only to the extent of their capital gains for the taxable year plus $3,000 of other income. Unused capital
losses can be carried forward and used to offset capital gains in future years. In addition, a noncorporate taxpayer may elect
to carry back net losses on section 1256 contracts to each of the three preceding years and use them to offset section 1256 contract
gains in those years, subject to certain limitations. Corporate taxpayers generally may deduct capital losses only to the extent
of capital gains, subject to special carryback and carryforward rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Otherwise deductible expenses incurred
by noncorporate taxpayers constituting &ldquo;miscellaneous itemized deductions,&rdquo; generally including investment-related
expenses (other than interest and certain other specified expenses), are deductible only to the extent they exceed 2 percent of
the taxpayer&rsquo;s adjusted gross income for the year. Although the matter is not free from doubt, we believe management fees
we pay to the General Partner and other expenses we incur constitute investment-related expenses subject to the miscellaneous itemized
deduction limitation, rather than expenses incurred in connection with a trade or business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Noncorporate unitholders generally may
deduct &ldquo;investment interest expense&rdquo; only to the extent of their &ldquo;net investment income.&rdquo; Investment interest
expense of a unitholder will generally include any interest accrued by USBO and any interest paid or accrued on direct borrowings
by a unitholder to purchase or carry its units, such as interest with respect to a margin account. Net investment income generally
includes gross income from property held for investment (including &ldquo;portfolio income&rdquo; under the passive loss rules
but not, absent an election, long-term capital gains or certain qualifying dividend income) less deductible expenses other than
interest directly connected with the production of investment income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">To the extent that we allocate losses or
expenses to you that must be deferred or disallowed as a result of these or other limitations in the Code, you may be taxed on
income in excess of your economic income or distributions (if any) on your units. As one example, you could be allocated and required
to pay tax on your share of interest income accrued by USBO for a particular taxable year, and in the same year be allocated a
share of a capital loss that you cannot deduct currently because you have insufficient capital gains against which to offset the
loss. As another example, you could be allocated and required to pay tax on your share of interest income and capital gain for
a year, but be unable to deduct some or all of your share of management fees and/or margin account interest incurred by you with
respect to your units. Unitholders are urged to consult their own professional tax advisors regarding the effect of limitations
under the Code on your ability to deduct your allocable share of USBO&rsquo;s losses and expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Tax Basis of Units </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">A unitholder&rsquo;s tax basis in its units
is important in determining (1)&nbsp;the amount of taxable gain or loss it will realize on the sale or other disposition of its
units, (2)&nbsp;the amount of non-taxable distributions that it may receive from USBO and (3)&nbsp;its ability to utilize its distributive
share of any losses of USBO on its tax return. A unitholder&rsquo;s initial tax basis in its units will equal its cost for the
units plus its share of USBO&rsquo;s liabilities (if any) at the time of purchase. In general, a unitholder&rsquo;s &ldquo;share&rdquo;
of those liabilities will equal the sum of (i)&nbsp;the entire amount of any otherwise nonrecourse liability of USBO as to which
the unitholder or an affiliate of the unitholder is the creditor (a &ldquo;partner nonrecourse liability&rdquo;) and (ii)&nbsp;a
<I>pro rata</I> share of any nonrecourse liabilities of USBO that are not partner nonrecourse liabilities as to any unitholder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">A unitholder&rsquo;s tax basis in its units
generally will be (1)&nbsp;increased by (a)&nbsp;its allocable share of USBO&rsquo;s taxable income and gain and (b)&nbsp;any additional
contributions by the unitholder to USBO and (2)&nbsp;decreased (but not below zero) by (a)&nbsp;its allocable share of USBO&rsquo;s
tax deductions and losses and (b)&nbsp;any distributions by USBO to the unitholder. For this purpose, an increase in a unitholder&rsquo;s
share of USBO&rsquo;s liabilities will be treated as a contribution of cash by the unitholder to USBO and a decrease in that share
will be treated as a distribution of cash by USBO to the unitholder. Pursuant to certain IRS rulings, a unitholder will be required
to maintain a single, &ldquo;unified&rdquo; basis in all units that it owns. As a result, when a unitholder that acquired its units
at different prices sells less than all of its units, such unitholder will not be entitled to specify particular units ( <I>e.g.</I>,
those with a higher basis) as having been sold. Rather, it must determine its gain or loss on the sale by using an &ldquo;equitable
apportionment&rdquo; method to allocate a portion of its unified basis in its units to the units sold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Treatment of USBO Distributions</I>.&nbsp;If
USBO makes non-liquidating distributions to unitholders, such distributions generally will not be taxable to the unitholders for
U.S. federal income tax purposes except to the extent that the sum of (i)&nbsp;the amount of cash and (ii)&nbsp;the fair market
value of marketable securities distributed exceeds the unitholder&rsquo;s adjusted basis of its interest in USBO immediately before
the distribution. Any cash distributions in excess of a unitholder&rsquo;s tax basis generally will be treated as gain from the
sale or exchange of units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Constructive Termination of the Partnership</I>.&nbsp;We
will be considered to have been terminated for tax purposes if there is a sale or exchange of 50 percent or more of the total interests
in our units within a 12-month period. A termination would result in the closing of our taxable year for all unitholders. In the
case of a unitholder reporting on a taxable year other than a fiscal year ending December&nbsp;31, the closing of our taxable year
may result in more than 12 months of our taxable income or loss being includable in its taxable income for the year of termination.
We would be required to make new tax elections after a termination. A termination could result in tax penalties if we were unable
to determine that the termination had occurred. Moreover, a termination might either accelerate the application of, or subject
us to, any tax legislation enacted before the termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Tax Consequences of Disposition of Units </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">If a unitholder sells its units, it will
recognize gain or loss equal to the difference between the amount realized and its adjusted tax basis for the units sold. A unitholder&rsquo;s
amount realized will be the sum of the cash or the fair market value of other property received plus its share of any USBO debt
outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Gain or loss recognized by a unitholder
on the sale or exchange of units held for more than one year will generally be taxable as long-term capital gain or loss; otherwise,
such gain or loss will generally be taxable as short-term capital gain or loss. A special election is available under the Treasury
Regulations that will allow unitholders to identify and use the actual holding periods for the units sold for purposes of determining
whether the gain or loss recognized on a sale of units will give rise to long-term or short-term capital gain or loss. It is expected
that most unitholders will be eligible to elect, and generally will elect, to identify and use the actual holding period for units
sold. If a unitholder fails to make the election or is not able to identify the holding periods of the units sold, the unitholder
will have a split holding period in the units sold. Under such circumstances, a unitholder will be required to determine its holding
period in the units sold by first determining the portion of its entire interest in USBO that would give rise to long-term capital
gain or loss if its entire interest were sold and the portion that would give rise to short-term capital gain or loss if the entire
interest were sold. The unitholder would then treat each unit sold as giving rise to long-term capital gain or loss and short-term
capital gain or loss in the same proportions as if it had sold its entire interest in USBO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Under Section&nbsp;751 of the Code, a portion
of a unitholder&rsquo;s gain or loss from the sale of units (regardless of the holding period for such units), will be separately
computed and taxed as ordinary income or loss to the extent attributable to &ldquo;unrealized receivables&rdquo; or &ldquo;inventory&rdquo;
owned by USBO. The term &ldquo;unrealized receivables&rdquo; includes, among other things, market discount bonds and short-term
debt instruments to the extent such items would give rise to ordinary income if sold by USBO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">If some or all of your units are lent by
your broker or other agent to a third party&nbsp;&mdash;&nbsp;for example, for use by the third party in covering a short sale&nbsp;&mdash;&nbsp;you
may be considered as having made a taxable disposition of the loaned units, in which case&nbsp;&mdash;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>you may recognize taxable gain or loss to the same extent as if you had sold the units for cash;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>any of USBO&rsquo;s income, gain, loss or deduction allocable to those units during the period of the loan will not be reportable
by you for tax purposes; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>any distributions you receive with respect to the units will be fully taxable, most likely as ordinary income.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Unitholders desiring to avoid these and
other possible consequences of a deemed disposition of their units should consider modifying any applicable brokerage account agreements
to prohibit the lending of their units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Other Tax Matters </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Information Reporting</I>.&nbsp;We report
tax information to the unitholders and the IRS. Unitholders who have become additional limited partners are treated as partners
for U.S. federal income tax purposes. The IRS has ruled that assignees of partnership interests who have not been admitted to a
partnership as partners but who have the capacity to exercise substantial dominion and control over the assigned partnership interests
will be considered partners for U.S. federal income tax purposes. On the basis of such ruling, except as otherwise provided herein,
we treat the following persons as partners for U.S. federal income tax purposes: (1)&nbsp;assignees of units who are pending admission
as limited partners, and (2)&nbsp;unitholders whose units are held in street name or by another nominee and who have the right
to direct the nominee in the exercise of all substantive rights attendant to the ownership of their units. USBO will furnish unitholders
each year with tax information on IRS Schedule K-1 (Form 1065), which will be used by the unitholders in completing their tax returns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Persons who hold an interest in USBO as
a nominee for another person are required to furnish to us the following information: (1)&nbsp;the name, address and taxpayer identification
number of the beneficial owner and the nominee; (2)&nbsp;whether the beneficial owner is (a)&nbsp;a person that is not a U.S. person,
(b)&nbsp;a foreign government, an international organization or any wholly-owned agency or instrumentality of either of the foregoing,
or (c)&nbsp;a tax-exempt entity; (3)&nbsp;the amount and description of units acquired or transferred for the beneficial owner;
and (4)&nbsp;certain information including the dates of acquisitions and transfers, means of acquisitions and transfers, and acquisition
cost for purchases, as well as the amount of net proceeds from sales. Brokers and financial institutions are required to furnish
additional information, including whether they are U.S. persons and certain information on units they acquire, hold or transfer
for their own account. A penalty of $100 per failure, up to a maximum of $1,500,000 per calendar year, is imposed by the Internal
Revenue Code of 1986, as amended for failure to report such information to us. The nominee is required to supply the beneficial
owner of the units with the information furnished to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Partnership Audit Procedures</I>.&nbsp;The
IRS may audit the U.S. federal income tax returns filed by USBO. Adjustments resulting from any such audit may require each unitholder
to adjust a prior year&rsquo;s tax liability and could result in an audit of the unitholder&rsquo;s own return. Any audit of a
unitholder&rsquo;s return could result in adjustments of non-partnership items as well as USBO items. Partnerships are generally
treated as separate entities for purposes of U.S. federal tax audits, judicial review of administrative adjustments by the IRS,
and tax settlement proceedings. The tax treatment of partnership items of income, gain, loss and deduction are determined at the
partnership level in a unified partnership proceeding rather than in separate proceedings with the unitholders. The Code provides
for one unitholder to be designated as the &ldquo;tax matters partner&rdquo; to represent the partnership purposes of these proceedings.
The LP Agreement appoints the General Partner as the tax matters partner of USBO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Tax Shelter Disclosure Rules</I>.&nbsp;In
certain circumstances the Code and Treasury Regulations require that the IRS be notified of taxable transactions through a disclosure
statement attached to a taxpayer&rsquo;s U.S. federal income tax return. These disclosure rules may apply to transactions irrespective
of whether they are structured to achieve particular tax benefits. They could require disclosure by USBO or unitholders if a unitholder
incurs a loss in excess a specified threshold from a sale or redemption of its units or possibly in other circumstances. While
these rules generally do not require disclosure of a loss recognized on the disposition of an asset in which the taxpayer has a
&ldquo;qualifying basis&rdquo; (generally a basis equal to the amount of cash paid by the taxpayer for such asset), they apply
to a loss recognized with respect to interests in a pass-through entity, such as the units, even if the taxpayer&rsquo;s basis
in such interests is equal to the amount of cash it paid. In addition, under recently enacted legislation, significant penalties
may be imposed in connection with a failure to comply with these reporting requirements. <I>Investors should consult their own
tax advisors concerning the application of these reporting requirements to their specific situation</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Tax-Exempt Organizations</I>.&nbsp;Subject
to numerous exceptions, qualified retirement plans and individual retirement accounts, charitable organizations and certain other
organizations that otherwise are exempt from U.S. federal income tax (collectively &ldquo;exempt organizations&rdquo;) nonetheless
are subject to the tax on unrelated business taxable income (&ldquo;UBTI&rdquo;). Generally, UBTI means the gross income derived
by an exempt organization from a trade or business that it regularly carries on, the conduct of which is not substantially related
to the exercise or performance of its exempt purpose or function, less allowable deductions directly connected with that trade
or business. If USBO were to regularly carry on (directly or indirectly) a trade or business that is unrelated with respect to
an exempt organization unitholder, then in computing its UBTI, the unitholder must include its share of (1)&nbsp;USBO&rsquo;s gross
income from the unrelated trade or business, whether or not distributed, and (2)&nbsp;USBO&rsquo;s allowable deductions directly
connected with that gross income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">UBTI generally does not include dividends,
interest, or payments with respect to securities loans or gains from the sale of property (other than property held for sale to
customers in the ordinary course of a trade or business). Nonetheless, income on, and gain from the disposition of, &ldquo;debt-financed
property&rdquo; is UBTI. Debt-financed property generally is income-producing property (including securities), the use of which
is not substantially related to the exempt organization&rsquo;s tax-exempt purposes, and with respect to which there is &ldquo;acquisition
indebtedness&rdquo; at any time during the taxable year (or, if the property was disposed of during the taxable year, the 12-month
period ending with the disposition). Acquisition indebtedness includes debt incurred to acquire property, debt incurred before
the acquisition of property if the debt would not have been incurred but for the acquisition, and debt incurred subsequent to the
acquisition of property if the debt would not have been incurred but for the acquisition and at the time of acquisition the incurrence
of debt was foreseeable. The portion of the income from debt-financed property attributable to acquisition indebtedness is equal
to the ratio of the average outstanding principal amount of acquisition indebtedness over the average adjusted basis of the property
for the year. USBO currently does not anticipate that it will borrow money to acquire investments; however, USBO cannot be certain
that it will not borrow for such purpose in the future. In addition, an exempt organization unitholder that incurs acquisition
indebtedness to purchase its units in USBO may have UBTI.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The U.S. federal tax rate applicable to
an exempt organization unitholder on its UBTI generally will be either the corporate or trust tax rate, depending upon the unitholder&rsquo;s
form of organization. USBO may report to each such unitholder information as to the portion, if any, of the unitholder&rsquo;s
income and gains from USBO for any year that will be treated as UBTI; the calculation of that amount is complex, and there can
be no assurance that USBO&rsquo;s calculation of UBTI will be accepted by the IRS. An exempt organization unitholder will be required
to make payments of estimated U.S. federal income tax with respect to its UBTI.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Regulated Investment Companies</I>.&nbsp;Interests
in and income from &ldquo;qualified publicly traded partnerships&rdquo; satisfying certain gross income tests are treated as qualifying
assets and income, respectively, for purposes of determining eligibility for regulated investment company (&ldquo;RIC&rdquo;) status.
A RIC may invest up to 25% of its assets in interests in a qualified publicly traded partnership. The determination of whether
a publicly traded partnership such as USBO is a qualified publicly traded partnership is made on an annual basis. USBO expects
to be a qualified publicly traded partnership in each of its taxable years. However, such qualification is not assured.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Non-U.S. Unitholders </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Generally, non-U.S. persons who derive
U.S. source income or gain from investing or engaging in a U.S. business are taxable on two categories of income. The first category
consists of amounts that are fixed, determinable, annual or periodic income, such as interest, dividends and rent that are not
connected with the operation of a U.S. trade or business (&ldquo;FDAP&rdquo;). The second category is income that is effectively
connected with the conduct of a U.S. trade or business (&ldquo;ECI&rdquo;). FDAP income (other than interest that is considered
&ldquo;portfolio interest&rdquo;) is generally subject to a 30 percent withholding tax, which may be reduced for certain categories
of income by a treaty between the U.S. and the recipient&rsquo;s country of residence. In contrast, ECI is generally subject to
U.S. tax on a net basis at graduated rates upon the filing of a U.S. tax return. Where a non-U.S. person has ECI as a result of
an investment in a partnership, the ECI is subject to a withholding tax at a rate of 35 percent for both individual and corporate
unitholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Withholding on Allocations and Distributions</I>.&nbsp;The
Code provides that a non-U.S. person who is a partner in a partnership that is engaged in a U.S. trade or business during a taxable
year will also be considered to be engaged in a U.S. trade or business during that year. Classifying an activity by a partnership
as an investment or an operating business is a factual determination. Under certain safe harbors in the Code, an investment fund
whose activities consist of trading in stocks, securities, or commodities for its own account generally will not be considered
to be engaged in a U.S. trade or business unless it is a dealer is such stocks, securities, or commodities. This safe harbor applies
to investments in commodities only if the commodities are of a kind customarily dealt in on an organized commodity exchange and
if the transaction is of a kind customarily consummated at such place. Although the matter is not free from doubt, USBO believes
that the activities directly conducted by USBO do not result in USBO being engaged in a trade or business within the United States.
However, there can be no assurance that the IRS would not successfully assert that USBO&rsquo;s activities constitute a U.S. trade
or business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In the event that USBO&rsquo;s activities
were considered to constitute a U.S. trade or business, USBO would be required to withhold at the highest rate specified in Code
section 1 (currently 35 percent) on allocations of our income to non-U.S. unitholders other than corporations and the highest rate
specified in Code section 11(b) on allocations of our income to corporate non-U.S. unitholders, when such income is distributed.
A Non-U.S. unitholder with ECI will generally be required to file a U.S. federal income tax return, and the return will provide
the non-U.S. unitholder with the mechanism to seek a refund of any withholding in excess of such unitholder&rsquo;s actual U.S.
federal income tax liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">If USBO is not treated as engaged in a
U.S. trade or business, a non-U.S. unitholder may nevertheless be treated as having FDAP income, which would be subject to a 30
percent withholding tax (possibly subject to reduction by treaty), with respect to some or all of its distributions from USBO or
its allocable share of USBO income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Any amount withheld by USBO on behalf of
a non-U.S. unitholder will be treated as a distribution to the non-U.S. unitholder to the extent possible. In some cases, USBO
may not be able to match the economic cost of satisfying its withholding obligations to a particular non-U.S. unitholder, which
may result in such cost being borne by USBO generally and, accordingly, by all unitholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">To the extent any interest income allocated
to a non-U.S. unitholder that otherwise constitutes FDAP is considered &ldquo;portfolio interest,&rdquo; neither the allocation
of such interest income to the non-U.S. unitholder nor a subsequent distribution of such interest income to the non-U.S. unitholder
will be subject to withholding, provided that the non-U.S. unitholder is not otherwise engaged in a trade or business in the U.S.
and provides USBO with a timely and properly completed and executed IRS Form W-8BEN or other applicable form. In general, &ldquo;portfolio
interest&rdquo; is interest paid on debt obligations issued in registered form, unless the &ldquo;recipient&rdquo; owns 10 percent
or more of the voting power of the issuer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Most of USBO&rsquo;s interest income qualifies
as &ldquo;portfolio interest.&rdquo; In order for USBO to avoid withholding on any interest income allocable to non-U.S. unitholders
that would qualify as &ldquo;portfolio interest,&rdquo; it will be necessary for all non-U.S. unitholders to provide USBO with
a timely and properly completed and executed Form W-8BEN (or other applicable form). If a non-U.S. unitholder fails to provide
a properly completed Form W-8BEN, the General Partner may request that the non-U.S. unitholder provide, within 15 days after the
request by the General Partner, a properly completed Form W-8BEN. If a non-U.S. unitholder fails to comply with this request, the
units owned by such non-U.S. unitholder will be subject to redemption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Gain from Sale of Units</I>.&nbsp;Gain
from the sale or exchange of the units may be taxable to a non-U.S. unitholder if the non-U.S. unitholder is a nonresident alien
individual who is present in the U.S. for 183 days or more during the taxable year. In such case, the nonresident alien individual
will be subject to a 30 percent withholding tax on the amount of such individual&rsquo;s gain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Branch Profits Tax on Corporate Non-U.S.
Unitholders</I>.&nbsp;In addition to the taxes noted above, any non-U.S. unitholders that are corporations may also be subject
to an additional tax, the branch profits tax, at a rate of 30 percent. The branch profits tax is imposed on a non-U.S. corporation&rsquo;s
dividend equivalent amount, which generally consists of the corporation&rsquo;s after-tax earnings and profits that are effectively
connected with the corporation&rsquo;s U.S. trade or business but are not reinvested in a U.S. business. This tax may be reduced
or eliminated by an income tax treaty between the United States and the country in which the non-U.S. unitholder is a &ldquo;qualified
resident.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Certain information reporting and withholding
requirement.</I> Recently enacted legislation that becomes effective after December&nbsp;31, 2012 generally imposes a 30% withholding
tax on payments of certain types of income to foreign financial institutions that fail to enter into an agreement with the United
States Treasury to report certain required information with respect to accounts held by U.S. persons (or held by foreign entities
that have U.S. persons as substantial owners). The IRS and the Treasury Department have announced that the full implementation
of these rules will be phased in over the next several years, including the obligation to withhold. The types of income subject
to the tax include U.S. source interest and dividends and the gross proceeds from the sale of any property that could produce U.S.-source
interest or dividends. The information required to be reported includes the identity and taxpayer identification number of each
account holder that is a U.S. person and transaction activity within the holder&rsquo;s account. In addition, subject to certain
exceptions, this legislation also imposes a 30% withholding tax on payments to foreign entities that are not financial institutions
unless the foreign entity certifies that it does not have a greater than 10% U.S. owner or provides the withholding agent with
identifying information on each greater 10% U.S. owner. When these provisions become effective, depending on the status of a Non-U.S.
Shareholder and the status of the intermediaries through which it holds Shares, a Non-U.S. Shareholder could be subject to this
30% withholding tax with respect to distributions on its Shares and proceeds from the sale of its Shares. Under certain circumstances,
a Non-U.S. Shareholder might be eligible for refund or credit of such taxes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>Prospective non-U.S. unitholders should
consult their tax advisor with regard to these and other issues unique to non-U.S. unitholders. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Backup Withholding </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO may be required to withhold U.S. federal
income tax (&ldquo;backup withholding&rdquo;) from all taxable distributions payable to (1)&nbsp;any unitholder who fails to furnish
to USBO with his, her or its correct taxpayer identification number or a certificate that the unitholder is exempt from backup
withholding, and (2)&nbsp;any unitholder with respect to whom the IRS notifies USBO that the unitholder is subject to backup withholding.
Backup withholding is not an additional tax and may be returned or credited against a taxpayer&rsquo;s regular U.S. federal income
tax liability if appropriate information is provided to the IRS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Other Tax Considerations </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><I>In addition to U.S. federal income taxes,
unitholders may be subject to other taxes, such as state and local income taxes, unincorporated business taxes, business franchise
taxes, and estate, inheritance or intangible taxes that may be imposed by the various jurisdictions in which USBO does business
or owns property or where the unitholders reside. Although an analysis of those various taxes is not presented here, each prospective
unitholder should consider their potential impact on its investment in USBO. It is each unitholder&rsquo;s responsibility to file
the appropriate U.S. federal, state, local, and foreign tax returns. Reed Smith LLP has not provided an opinion concerning any
aspects of state, local or foreign tax or U.S. federal tax other than those U.S. federal income tax issues discussed herein. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Investment by ERISA Accounts </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>General </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Most employee benefit plans and individual
retirement accounts (&ldquo;IRAs&rdquo;) are subject to the Employee Retirement Income Security Act of 1974, as amended (&ldquo;ERISA&rdquo;)
or the Internal Revenue Code of 1986, as amended (the &ldquo;Code&rdquo;), or both. This section discusses certain considerations
that arise under ERISA and the Code that a fiduciary of an employee benefit plan as defined in ERISA or a plan as defined in Section&nbsp;4975
of the Code who has investment discretion should take into account before deciding to invest the plan&rsquo;s assets in USBO. Employee
benefit plans and plans are collectively referred to below as plans, and fiduciaries with investment discretion are referred to
below as plan fiduciaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">This summary is based on the provisions
of ERISA and the Code as of the date hereof. This summary is not intended to be complete, but only to address certain questions
under ERISA and the Code likely to be raised by your advisors. The summary does not include state or local law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Potential plan investors are urged to consult
with their own professional advisors concerning the appropriateness of an investment in USBO and the manner in which units should
be purchased.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Special Investment Considerations </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Each plan fiduciary must consider the facts
and circumstances that are relevant to an investment in USBO, including the role that an investment in USBO would play in the plan&rsquo;s
overall investment portfolio. Each plan fiduciary, before deciding to invest in USBO, must be satisfied that the investment is
prudent for the plan, that the investments of the plan are diversified so as to minimize the risk of large losses and that an investment
in USBO complies with the terms of the plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>USBO and Plan Assets </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">A regulation issued under ERISA contains
rules for determining when an investment by a plan in an equity interest of a limited partnership will result in the underlying
assets of the partnership being deemed plan assets for purposes of ERISA and Section&nbsp;4975 of the Code. Those rules provide
that assets of a limited partnership will not be plan assets of a plan that purchases an equity interest in the partnership if
the equity interest purchased is a publicly-offered security. If the underlying assets of a partnership are considered to be assets
of any plan for purposes of ERISA or Section&nbsp;4975 of the Code, the operations of that partnership would be subject to and,
in some cases, limited by, the provisions of ERISA and Section&nbsp;4975 of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>
<P STYLE="margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The publicly-offered security exception
described above applies if the equity interest is a security that is:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(1)</TD><TD>freely transferable (determined based on the relevant facts and circumstances);</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(2)</TD><TD>part of a class of securities that is widely held (meaning that the class of securities is owned by 100 or more investors independent
of the issuer and of each other); and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 24.45pt"></TD><TD STYLE="width: 24.5pt">(3)</TD><TD>either (a)&nbsp;part of a class of securities registered under Section&nbsp;12(b) or 12(g) of the Exchange Act or (b)&nbsp;sold
to the plan as part of a public offering pursuant to an effective registration statement under the Securities Act of 1933 and the
class of which such security is a part is registered under the Exchange Act within 120 days (or such later time as may be allowed
by the SEC) after the end of the fiscal year of the issuer in which the offering of such security occurred.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The plan asset regulations under ERISA
state that the determination of whether a security is freely transferable is to be made based on all the relevant facts and circumstances.
In the case of a security that is part of an offering in which the minimum investment is $10,000 or less, the following requirements,
alone or in combination, ordinarily will not affect a finding that the security is freely transferable: (1)&nbsp;a requirement
that no transfer or assignment of the security or rights relating to the security be made that would violate any federal or state
law, (2)&nbsp;a requirement that no transfer or assignment be made without advance written notice given to the entity that issued
the security, and (3)&nbsp;any restriction on the substitution of assignee as a limited partner of a partnership, including a general
partner consent requirement, provided that the economic benefits of ownership of the assignor may be transferred or assigned without
regard to such restriction or consent (other than compliance with any of the foregoing restrictions).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner believes that the conditions
described above are satisfied with respect to the units. The General Partner believes that the units therefore constitute publicly-offered
securities, and the underlying assets of USBO are not considered to constitute plan assets of any plan that purchases units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Prohibited Transactions </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">ERISA and the Code generally prohibit certain
transactions involving the plan and persons who have certain specified relationships to the plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In general, units may not be purchased
with the assets of a plan if the General Partner, the clearing brokers, the trading advisors (if any), or any of their affiliates,
agents or employees either:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>exercise any discretionary authority or discretionary control with respect to management of the plan;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>exercise any authority or control with respect to management or disposition of the assets of the plan;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>render investment advice for a fee or other compensation, direct or indirect, with respect to any moneys or other property
of the plan;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>have any authority or responsibility to render investment advice with respect to any monies or other property of the plan;
or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>have any discretionary authority or discretionary responsibility in the administration of the plan.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Also, a prohibited transaction may occur
under ERISA or the Code when circumstances indicate that (1)&nbsp;the investment in a unit is made or retained for the purpose
of avoiding application of the fiduciary standards of ERISA, (2)&nbsp;the investment in a unit constitutes an arrangement under
which USBO is expected to engage in transactions that would otherwise be prohibited if entered into directly by the plan purchasing
the unit, (3)&nbsp;the investing plan, by itself, has the authority or influence to cause USBO to engage in such transactions,
or (4)&nbsp;a person who is prohibited from transacting with the investing plan may, but only with the aid of certain of its affiliates
and the investing plan, cause USBO to engage in such transactions with such person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Special IRA Rules </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">IRAs are not subject to ERISA&rsquo;s fiduciary
standards, but are subject to their own rules, including the prohibited transaction rules of Section&nbsp;4975 of the Code, which
generally mirror ERISA&rsquo;s prohibited transaction rules. For example, IRAs are subject to special custody rules and must maintain
a qualifying IRA custodial arrangement separate and distinct from USBO and its custodial arrangement. Otherwise, if a separate
qualifying custodial arrangement is not maintained, an investment in the units will be treated as a distribution from the IRA.
Second, IRAs are prohibited from investing in certain commingled investments, and the General Partner makes no representation regarding
whether an investment in units is an inappropriate commingled investment for an IRA. Third, in applying the prohibited transaction
provisions of Section&nbsp;4975 of the Code, in addition to the rules summarized above, the individual for whose benefit the IRA
is maintained is also treated as the creator of the IRA. For example, if the owner or beneficiary of an IRA enters into any transaction,
arrangement, or agreement involving the assets of his or her IRA to benefit the IRA owner or beneficiary (or his or her relatives
or business affiliates) personally, or with the understanding that such benefit will occur, directly or indirectly, such transaction
could give rise to a prohibited transaction that is not exempted by any available exemption. Moreover, in the case of an IRA, the
consequences of a non-exempt prohibited transaction are that the IRA&rsquo;s assets will be treated as if they were distributed,
causing immediate taxation of the assets (including any early distribution penalty tax applicable under Section&nbsp;72 of the
Code), in addition to any other fines or penalties that may apply.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Exempt Plans </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Certain employee benefit plans may be governmental
plans or church plans. Governmental plans and church plans are generally not subject to ERISA, nor do the above-described prohibited
transaction provisions described above apply to them. These plans are, however, subject to prohibitions against certain related-party
transactions under Section&nbsp;503 of the Code, which operate similar to the prohibited transaction rules described above. In
addition, the fiduciary of any governmental or church plan must consider any applicable state or local laws and any restrictions
and duties of common law imposed upon the plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">No view is expressed as to whether an investment
in USBO (and any continued investment in USBO), or the operation and administration of USBO, is appropriate or permissible for
any governmental plan or church plan under Code Section&nbsp;503, or under any state, county, local or other law relating to that
type of plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Allowing an investment in USBO is not
to be construed as a representation by USBO, its General Partner, any trading advisor, any clearing broker, the Marketing Agent
or legal counsel or other advisors to such parties or any other party that this investment meets some or all of the relevant legal
requirements with respect to investments by any particular plan or that this investment is appropriate for any such particular
plan. The person with investment discretion should consult with the plan&rsquo;s attorney and financial advisors as to the propriety
of an investment in USBO in light of the circumstances of the particular plan, current tax law and ERISA. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>INFORMATION YOU SHOULD KNOW </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">This prospectus contains information you
should consider when making an investment decision about the units. You may rely on the information contained in this prospectus.
Neither USBO nor its General Partner has authorized any person to provide you with different information and, if anyone provides
you with different or inconsistent information, you should not rely on it. This prospectus is not an offer to sell the units in
any jurisdiction where the offer or sale of the units is not permitted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The information contained in this prospectus
was obtained from us and other sources believed by us to be reliable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">You should rely only on the information
contained in this prospectus or any applicable prospectus supplement. We have not authorized anyone to provide you with any information
that is different. If you receive any unauthorized information, you must not rely on it. You should disregard anything we said
in an earlier document that is inconsistent with what is included in this prospectus or any applicable prospectus supplement. Where
the context requires, when we refer to this &ldquo;prospectus,&rdquo; we are referring to this prospectus and (if applicable) the
relevant prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">You should not assume that the information
in this prospectus or any applicable prospectus supplement is current as of any date other than the date on the front page of this
prospectus or the date on the front page of any applicable prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">We include cross references in this prospectus
to captions in these materials where you can find further related discussions. The table of contents tells you where to find these
captions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">This prospectus includes &ldquo;forward-looking
statements&rdquo; which generally relate to future events or future performance. In some cases, you can identify forward-looking
statements by terminology such as &ldquo;may,&rdquo; &ldquo;will,&rdquo; &ldquo;should,&rdquo; &ldquo;expect,&rdquo; &ldquo;plan,&rdquo;
&ldquo;anticipate,&rdquo; &ldquo;believe,&rdquo; &ldquo;estimate,&rdquo; &ldquo;predict,&rdquo; &ldquo;potential&rdquo; or the
negative of these terms or other comparable terminology. All statements (other than statements of historical fact) included in
this prospectus that address activities, events or developments that will or may occur in the future, including such matters as
changes in inflation in the United States, movements in the stock market, movements in U.S. and foreign currencies, and movements
in the commodities markets and indexes that track such movements, USBO&rsquo;s operations, the General Partner&rsquo;s plans and
references to USBO&rsquo;s future success and other similar matters, are forward-looking statements. These statements are only
predictions. Actual events or results may differ materially. These statements are based upon certain assumptions and analyses the
General Partner has made based on its perception of historical trends, current conditions and expected future developments, as
well as other factors appropriate in the circumstances. Whether or not actual results and developments will conform to the General
Partner&rsquo;s expectations and predictions, however, is subject to a number of risks and uncertainties, including the special
considerations discussed in this prospectus, general economic, market and business conditions, changes in laws or regulations,
including those concerning taxes, made by governmental authorities or regulatory bodies, and other world economic and political
developments. See &ldquo;What Are the Risk Factors Involved with an Investment in USBO?&rdquo; Consequently, all the forward-looking
statements made in this prospectus are qualified by these cautionary statements, and there can be no assurance that the actual
results or developments the General Partner anticipates will be realized or, even if substantially realized, that they will result
in the expected consequences to, or have the expected effects on, USBO&rsquo;s operations or the value of the units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WHERE YOU CAN FIND MORE INFORMATION </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The General Partner has filed on behalf
of USBO a registration statement on Form S-1 with the SEC under the 1933 Act. This prospectus does not contain all of the information
set forth in the registration statement (including the exhibits to the registration statement), parts of which have been omitted
in accordance with the rules and regulations of the SEC. For further information about USBO or the units, please refer to the registration
statement, which you may inspect, without charge, at the public reference facilities of the SEC at the below address or online
at <I>www.sec.gov</I>, or obtain at prescribed rates from the public reference facilities of the SEC at the below address. Information
about USBO and the units can also be obtained from USBO&rsquo;s website, which is <I>www.unitedstatesbrentoilfund.com.</I> USBO&rsquo;s
website address is only provided here as a convenience to you and the information contained on or connected to the website is not
part of this prospectus or the registration statement of which this prospectus is part. USBO is subject to the informational requirements
of the Exchange Act and the General Partner and USBO will each, on behalf of USBO, file certain reports and other information with
the SEC under the Exchange Act. The General Partner will file an updated prospectus annually for USBO pursuant to the Securities
Act. The reports and other information can be inspected at the public reference facilities of the SEC located at 100 F Street,
NE, Washington, D.C. 20549 and online at <I>www.sec.gov.</I> You may also obtain copies of such material from the public reference
facilities of the SEC at 100 F Street, NE, Washington, D.C. 20549, at prescribed rates. You may obtain more information concerning
the operation of the public reference facilities of the SEC by calling the SEC at 1-800-SEC-0330 or visiting online at <I>www.sec.gov.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>INCORPORATION BY REFERENCE OF CERTAIN
INFORMATION </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">We are a reporting company and file annual,
quarterly and current reports and other information with the SEC. The rules of the SEC allow us to &ldquo;incorporate by reference&rdquo;
information that we file with them, which means that we can disclose important information to you by referring you to those documents.
The information incorporated by reference is an important part of this prospectus. This prospectus incorporates by reference the
documents set forth below that have been previously filed with the SEC:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>our Annual Report on Form 10-K for the fiscal year ended December 31, 2012, filed with the SEC on March __, 2013; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>our Current Reports on Form 8-K filed with the SEC on January 29, 2013 and February 27, 2013.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Any statement contained in a document incorporated
by reference in this prospectus shall be deemed to be modified or superseded for purposes of this prospectus to the extent that
a statement contained in this prospectus or in any other subsequently filed document that also is or is deemed to be incorporated
by reference in this prospectus modifies or supersedes such statement. Any statement so modified or superseded shall not be deemed,
except as so modified or superseded, to constitute a part of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">We will provide to each person to whom
a prospectus is delivered, including any beneficial owner, a copy of these filings at no cost, upon written or oral request at
the following address or telephone number:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">United States Brent Oil Fund, LP<BR>
Attention: Nicholas D. Gerber<BR>
1999 Harrison Street</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Suite 1530</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt">Oakland, California
94612</FONT><BR>
<FONT STYLE="font-size: 10pt"> (510) 522-9600 </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Our internet website is <I>www.unitedstatesbrentoilfund.com</I>.
We make our electronic filings with the SEC, including our annual reports on Form 10-K, quarterly reports on Form 10-Q, current
reports on Form 8-K and amendments to these reports available on our website free of charge as soon as practicable after we file
or furnish them with the SEC. The information contained on our website does not constitute a part of this prospectus, and our website
address supplied above is intended to be an inactive textual reference only and not an active hyperlink to our website.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SUMMARY OF PROMOTIONAL AND SALES MATERIAL
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">USBO will use the following sales material it has prepared:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>USBO&rsquo;s website, <I>www.unitedstatesbrentoilfund.com</I>; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -18.35pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 30.6pt"></TD><TD STYLE="width: 18.35pt">&bull;</TD><TD>Fact Sheet found on USBO&rsquo;s website.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The materials described above are not a
part of this prospectus or the registration statement of which this prospectus is a part and have been submitted to the staff of
the SEC for their review pursuant to Industry Guide 5.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>INTELLECTUAL PROPERTY </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">the General Partner owns a trademark registration for BNO UNITED
STATES BRENT OIL FUND LP (and Design) (U.S. Reg. No. 3916765) for &ldquo;financial investment services in the field of oil futures
contracts, cash-settled options on oil futures contracts, forward contracts for oil, over-the-counter transactions based on the
price of oil, and indices based on the foregoing,&rdquo; in use since June 2, 2010 and BNO UNITED STATES BRENT OIL FUND, LP (and
Flame Design) S.N. 85592286, in use since October 2, 2012. USBO relies upon this trademark through which it markets its services
and strives to build and maintain brand recognition in the market and among current and potential investors. So long as USBO continues
to use this trademark to identify its services, without challenge from any third party, and properly maintains and renews the trademark
registrations under applicable laws, rules and regulations, it will continue to have indefinite protection for this trademark under
current laws, rules and regulations. The General Partner has been granted two patents Nos. 7,739,186 and 8,019,675, for systems
and methods for an exchange traded fund (&ldquo;ETF&rdquo;) that tracks the price of one or more commodities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>APPENDIX A </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Glossary of Defined Terms </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In this prospectus, each of the following
terms have the meanings set forth after such term:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>1933 Act:</B> The Securities Act of
1933.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Administrator:</B> Brown Brothers Harriman&nbsp;&amp;
Co.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Agriculture Index:</B> SummerHaven Dynamic
Agriculture Index Total Return.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Authorized Purchaser:</B> One that purchases
or redeems Creation Baskets or Redemption Baskets, respectively, from or to USBO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Benchmark Futures Contract:</B> The
near month contract to expire for Brent crude oil traded on the ICE Futures Exchange unless the near month contract is within two
weeks of expiration, in which case the Benchmark Futures Contract is the next month contract to expire for Brent crude oil traded
on the ICE Futures Exchange.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Block Trade:</B> Privately negotiated
futures or option transactions executed apart from the public auction market. A block transaction may be executed either on or
off the exchange trading floor but is still reported to and cleared by the exchange.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Business Day:</B> Any day other than
a day when any of the NYSE Arca, the New York Mercantile Exchange or the New York Stock Exchange is closed for regular trading.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>CFTC:</B> Commodity Futures Trading
Commission, an independent agency with the mandate to regulate commodity futures and options in the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Cleared Swap Contract:</B> A financial
contract, whose value is designed to track the return on stocks, bonds, currencies, commodities, or some other benchmark, that
is submitted to a central clearinghouse after it is either traded over-the-counter or on an exchange or other trading platform.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Code:</B> Internal Revenue Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Commodity Index:</B> SummerHaven Dynamic
Commodity Index Total Return.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Commodity Pool:</B> An enterprise in
which several individuals contribute funds in order to trade futures or future options collectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Commodity Pool Operator or CPO:</B>
Any person engaged in a business which is of the nature of an investment trust, syndicate, or similar enterprise, and who, in connection
therewith, solicits, accepts, or receives from others, funds, securities, or property, either directly or through capital contributions,
the sale of stock or other forms of securities, or otherwise, for the purpose of trading in any commodity for future delivery or
commodity option on or subject to the rules of any contract market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Copper Index:</B> SummerHaven Copper
Index Total Return.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>CPER:</B> United States Copper Index
Fund.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Creation Basket:</B> A block of 50,000
units used by USBO to issue units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Crude Oil Interests:</B> Futures Contracts
and Other Crude Oil-Related Investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Custodian:</B> Brown Brothers Harriman&nbsp;&amp;
Co.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Dodd-Frank Act:</B> &ldquo;The Dodd-Frank
Wall Street Reform and Consumer Protection Act&rdquo; that was signed into law on July&nbsp;21, 2010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>DTC:</B> The Depository Trust Company.
DTC will act as the securities depository for the units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>DTC Participant:</B> An entity that
has an account with DTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>DTEF:</B> A derivatives transaction
execution facility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Exchange Act:</B> The Securities Exchange
Act of 1934.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Exchange for Physical (EFP):</B> An
off market transaction which involves the swapping (or exchanging) of an over-the-counter (OTC) position for a futures position.
The OTC transaction must be for the same or similar quantity or amount of a specified commodity, or a substantially similar commodity
or instrument. The OTC side of the EFP can include swaps, swap options, or other instruments traded in the OTC market. In order
that an EFP transaction can take place, the OTC side and futures components must be &ldquo;substantially similar&rdquo; in terms
of either value and or quantity. The net result is that the OTC position (and the inherent counterparty credit exposure) is transferred
from the OTC market to the futures market. EFPs can also work in reverse, where a futures position can be reversed and transferred
to the OTC market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Exchange for Swap:</B> A technique,
analogous to an EFP transaction used by financial institutions to avoid taking physical delivery of commodities. A dealer takes
the financial institution&rsquo;s futures positions into its own account and swaps the commodity return for a funding rate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>FINRA:</B> Financial Industry Regulatory
Authority.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Futures Contracts:</B> Futures contracts
for crude oil, natural gas, gasoline, heating oil and other petroleum-based fuels that are traded on the New York Mercantile Exchange,
ICE Futures Exchange or other U.S. and foreign exchanges.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>General Partner:</B> United States Commodity
Funds LLC, a Delaware limited liability company, which is registered as a Commodity Pool Operator, who controls the investments
and other decisions of USBO, and which is the general partner or sponsor of each of the Related Public Funds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>ICE Futures Exchange:</B> The leading
electronic regulated futures and options exchange for global energy markets. USBO expects to invest primarily in futures contracts,
and particularly in futures contracts traded on the ICE Futures Exchange. Its trading platform offers participants access to a
wide spectrum of energy futures products including the Brent and West Texas Intermediate (&ldquo;WTI&rdquo;) global crude benchmark
contracts, Gas Oil, Natural Gas, Electricity, Coal, and ECX carbon financial instruments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Indirect Participants:</B> Banks, brokers,
dealers and trust companies that clear through or maintain a custodial relationship with a DTC Participant, either directly or
indirectly.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Limited Liability Company (LLC):</B>
A type of business ownership combining several features of corporation and partnership structures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>LP Agreement:</B> The Third Amended
and Restated Agreement of Limited Partnership dated March 1, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Margin:</B> The amount of equity required
for an investment in futures contracts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Marketing Agent:</B> ALPS Distributors,
Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Metals Index:</B> SummerHaven Dynamic
Metals Index Total Return.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>mmBTU:</B> 10,000 million British thermal
units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>NAV:</B> Net Asset Value of USBO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>NFA:</B> National Futures Association.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>New York Mercantile Exchange (NYMEX):</B>
The primary exchange on which futures contracts are traded in the U.S.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Option:</B> The right, but not the obligation,
to buy or sell a futures contract or forward contract at a specified price on or before a specified date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Other Crude Oil-Related Investments:</B>
Crude oil-related investments other than Futures Contracts such as cash-settled options on Futures Contracts, forward contracts
for crude oil, and over-the-counter transactions that are based on the price of crude oil and other petroleum-based fuels, Futures
Contracts and indices based on the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Over-the-Counter (OTC) Derivative:</B>
A financial contract, whose value is designed to track the return on stocks, bonds, currencies, commodities, or some other benchmark,
that is traded over-the-counter or off organized exchanges.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Prudential Regulators:</B> the CFTC,
the SEC and the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit
Insurance Corporation, the Farm Credit Administration and the Federal Housing Finance Agency, collectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Redemption Basket:</B> A block of 50,000.00
units used by USBO to redeem units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Related Public Funds:</B> USOF, USNG,
US12OF, UGA, USDHO, USSO, US12NG, UAC, USCI, USAG, USMI and CPER.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>SEC:</B> Securities and Exchange Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Secondary Market:</B> The stock exchanges
and the over-the-counter market. Securities are first issued as a primary offering to the public. When the securities are traded
from that first holder to another, the issues trade in these secondary markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Spot Contract:</B> A cash market transaction
in which the buyer and seller agree to the immediate purchase and sale of a commodity, usually with a two-day settlement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Swap Contract:</B> An over-the-counter
derivative that generally involves an exchange of a stream of payments between the contracting parties based on a notional amount
and a specified index.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Tracking Error:</B> Possibility that
the daily NAV of USBO will not track the price of Brent crude oil.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Treasuries:</B> Obligations of the U.S.
government with remaining maturities of 2 years or less.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>UAC: </B>United States Asian Commodities
Basket Fund</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>UGA:</B> United States Gasoline Fund,
LP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>US12NG:</B> United States 12 Month Natural
Gas Fund, LP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>US12OF:</B> United States 12 Month Oil
Fund, LP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>USAG:</B> United States Agriculture
Index Fund.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>USBO:</B> United States Brent Oil Fund,
LP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>USCI:</B> United States Commodity Index
Fund.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>USDHO:</B> United States Diesel-Heating
Oil Fund, LP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>USMI:</B> United States Metals Index
Fund, LP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>USNG:</B> United States Natural Gas
Fund, LP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>USOF:</B> United States Oil Fund, LP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>USSO:</B> United States Short Oil Fund,
LP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Valuation Day:</B> Any day as of which
USBO calculates its NAV.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>You:</B> The owner of units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>APPENDIX B</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES BRENT OIL FUND, LP&#8232;&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&#8232;THIRD AMENDED AND RESTATED AGREEMENT
OF LIMITED PARTNERSHIP</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">This
Third Amended and Restated Agreement of Limited Partnership (this &ldquo;<I>Agreement</I>&rdquo;) dated as of March 1, 2013, is
entered into by and among United States Commodity Funds LLC, a Delaware limited liability company, as General Partner, </FONT>on
behalf of itself and any Person or Persons<FONT STYLE="font-family: Times New Roman, Times, Serif"> who shall hereafter be admitted
as Partners in accordance with this Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">WHEREAS, the General Partner and Knight
Capital Markets, LLC, as successor company to Kellogg Capital Markets, the Initial Limited Partner, are parties to that certain
second amended and restated agreement of limited partnership executed on May 4, 2010 (the &ldquo;LP Agreement&rdquo;);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">WHEREAS, Knight Capital Markets, LLC is
no longer a Limited Partner; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">WHEREAS, the General Partner now desires
to amend and restate the LP Agreement regarding the operation of the Partnership;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">NOW THEREFORE, the LP Agreement in its
entirety is hereby amended and restated as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE 1&#8232;&nbsp;&nbsp;&#8232;DEFINITIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">As used in this Agreement, the following
terms shall have the following meanings:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 21pt">1.1</TD><TD>&ldquo;<I>Accounting Period</I>&rdquo; shall mean the following periods: the initial accounting period which shall commence
upon the commencement of operations of the Partnership. Each subsequent Accounting Period shall commence immediately after the
close of the preceding Accounting Period. Each Accounting Period hereunder shall close on the earliest of (i) the last Business
Day of a month, (ii) the effective date of dissolution of the Partnership, and (iii) such other day or days in addition thereto
or in substitution therefore as may from time to time be determined by the General Partner in its discretion either in any particular
case or generally.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 21pt">1.2</TD><TD>&ldquo;<I>Act</I>&rdquo; shall mean the Revised Uniform Limited Partnership Act of the State of Delaware, as amended from time
to time.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 21pt">1.3</TD><TD>&ldquo;<I>Additional Limited Partner</I>&rdquo; shall mean a Person admitted to the Partnership as a Limited Partner pursuant
to this Agreement and who is shown as such on the books and records of the Partnership.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 21pt">1.4</TD><TD>&ldquo;<I>Affiliate</I>&rdquo; shall mean, when used with reference to a specified Person, (i) any Person who directly or indirectly
through one or more intermediaries controls or is controlled by or is under common control with the specified Person or (ii) any
Person that is an officer of, partner in, or trustee of, or serves in a similar capacity with respect to, the specified Person
or of which the specified Person is an officer, partner or trustee, or with respect to which the specified Person serves in a similar
capacity.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 21pt">1.5</TD><TD>&ldquo;<I>Assignee</I>&rdquo; shall mean a Record Holder that has not been admitted to the Partnership as a Substituted Limited
Partner.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 21pt">1.6</TD><TD>&ldquo;<I>Agreement</I>&rdquo; shall mean this Third Amended and Restated Agreement of Limited Partnership as may be amended,
modified, supplemented or restated from time to time.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 21pt">1.7</TD><TD>&ldquo;<I>Authorized Purchaser Agreement</I>&rdquo; shall mean an agreement among the Partnership, the General Partner and
a Participant, as may be amended or supplemented from time to time in accordance with its terms.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 22.5pt; text-indent: -22.5pt">1.8&nbsp;&nbsp;&ldquo;<I>Business
Day</I>&rdquo; shall mean any day other than a day when any of the ICE Futures Exchange, the New York Stock Exchange or the NYSE
Arca, Inc. is closed for regular trading.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 22.5pt; text-indent: -22.5pt">1.9&nbsp;&nbsp;&ldquo;<I>Beneficial
Owner</I>&rdquo; shall mean the ultimate beneficial owner of Units held by a nominee which has furnished the identity of the Beneficial
Owner in accordance with Section 6031(c) of the Code (or any other method acceptable to the General Partner in its sole discretion)
and with Section 9.2.2 of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.10&nbsp;&nbsp;&ldquo;<I>Capital Account</I>&rdquo; shall have
the meaning assigned to such term in Section 4.1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 22.5pt; text-indent: -22.5pt">1.11&nbsp;&nbsp;&ldquo;<I>Capital
Contribution</I>&rdquo; shall mean the total amount of money or agreed-upon value of property contributed to the Partnership by
all the Partners or any class of Partners or any one Partner, as the case may be (or the predecessor holders of the interests of
such Partner or Partners).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.12&nbsp;&nbsp;&ldquo;<I>Capital Transaction</I>&rdquo; shall
mean a sale of all or substantially all of the assets of the Partnership not in the ordinary course of business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.13&nbsp;&nbsp;&ldquo;<I>Certificate</I>&rdquo; shall mean
a certificate issued by the Partnership evidencing ownership of one or more Units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.14&nbsp;&nbsp;&ldquo;<I>Close of Business</I>&rdquo; shall
mean 5:00 PM New York time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.15&nbsp;&nbsp;&ldquo;<I>Creation Basket</I>&rdquo; shall mean
50,000 Units, or such other number of Units as may be determined by the General Partner from time to time, purchased by a Participant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.16&nbsp;&nbsp;&ldquo;<I>Code</I>&rdquo; shall mean the Internal
Revenue Code of 1986, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.17&nbsp;&nbsp;&ldquo;<I>Departing Partner</I>&rdquo; shall
mean a former General Partner, from and after the effective date of any withdrawal or removal of such former General Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.18&nbsp;&nbsp;&ldquo;<I>Depository</I>&rdquo; or &ldquo;<I>DTC</I>&rdquo;
shall mean The Depository Trust Company, New York, New York, or such other depository of Units as may be selected by the General
Partner as specified herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.19&nbsp;&nbsp;&ldquo;<I>Depository Agreement</I>&rdquo; shall
mean the Letter of Representations from the General Partner to the Depository, dated as of March 17, 2010, as may be amended or
supplemented from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.20&nbsp;&nbsp;&ldquo;<I>Distributable Cash</I>&rdquo; shall
mean, with respect to any period, all cash revenues of the Partnership (not including (i) Capital Contributions, (ii) funds received
by the Partnership in respect of indebtedness incurred by the Partnership, (iii) interest or other income earned on temporary investments
of Partnership funds pending utilization, and (iv) proceeds from any Capital Transaction), less the sum of the following: (x) all
amounts expended by the Partnership pursuant to this Agreement in such period and (y) such working capital or reserves or other
amounts as the General Partner reasonably deems to be necessary or appropriate for the proper operation of the Partnership&rsquo;s
business or its winding up and liquidation. The General Partner in its sole discretion may from time to time declare other funds
of the Partnership to be Distributable Cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.21&nbsp;&nbsp;&ldquo;<I>DTC Participants</I>&rdquo; shall
have the meaning assigned to such term in Section 9.2.2.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.22&nbsp;&nbsp;&ldquo;<I>Futures Contracts</I>&rdquo; shall
have the meaning assigned to such term in Section 2.4.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.23&nbsp;&nbsp;&ldquo;<I>General Partner</I>&rdquo; shall mean
United States Commodity Funds LLC, a Delaware limited liability company, or any Person who, at the time of reference thereto, serves
as a general partner of the Partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.24&nbsp;&nbsp;&ldquo;<I>Global Certificates</I>&rdquo; shall
mean the global certificate or certificates issued to the Depository as provided in the Depository Agreement, each of which shall
be in substantially the form attached hereto as Exhibit A.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.25&nbsp;&nbsp;&ldquo;<I>Indirect Participants</I>&rdquo; shall
have the meaning assigned to such term in Section 9.2.2.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.26&nbsp;&nbsp;&ldquo;<I>Initial Limited Partner</I>&rdquo;
shall have the meaning assigned to such term in Section 3.3.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.27&nbsp;&nbsp;&ldquo;<I>Initial Offering Period</I>&rdquo;
shall mean the period commencing with the initial effective date of the Prospectus and terminating no later than the ninetieth
(90<SUP>th</SUP>) day following such date unless extended for up to an additional 90 days at the sole discretion of the General
Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.28&nbsp;&nbsp;&ldquo;<I>Limited Partner</I>&rdquo; shall mean
the Organizational Limited Partner prior to its withdrawal from the Partnership and any other Person who is a limited partner (whether
the Initial Limited Partner, a Limited Partner admitted pursuant to this Agreement or an assignee who is admitted as a Limited
Partner) at the time of reference thereto, in such Person&rsquo;s capacity as a limited partner of the Partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.29&nbsp;&nbsp;&ldquo;<I>Management Fee</I>&rdquo; shall mean
the management fee paid to the General Partner pursuant to this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.30&nbsp;&nbsp;&ldquo;<I>Net Asset Value&rdquo; or &ldquo;NAV</I>&rdquo;
shall mean the current market value of the Partnership&rsquo;s total assets, less any liabilities and dividing that total by the
total number of outstanding Units, as reasonably determined by the General Partner or its designee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.31&nbsp;&nbsp;&ldquo;<I>NYMEX</I>&rdquo; shall mean the New
York Mercantile Exchange, or any successor thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.32&nbsp;&nbsp;&ldquo;<I>Opinion of Counsel</I>&rdquo; shall
mean a written opinion of counsel (who may be regular counsel to the Partnership or the General Partner) acceptable to the General
Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.33&nbsp;&nbsp;&ldquo;<I>Organizational Limited Partner</I>&rdquo;
shall mean Wainwright Holdings, Inc., a Delaware corporation, in its capacity as the organizational limited partner of the Partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.34&nbsp;&nbsp;&ldquo;<I>Outstanding</I>&rdquo; shall mean,
with respect to the Units or other Partnership Securities, as the case may be, all Units or other Partnership Securities that are
issued by the Partnership and reflected as outstanding on the Partnership&rsquo;s books and records as of the date of determination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.35&nbsp;&nbsp;&ldquo;<I>Participant</I>&rdquo; shall mean
a Person that is a DTC Participant and has entered into an Authorized Purchaser Agreement, which at the relevant time, is in full
force and effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.36&nbsp;&nbsp;&ldquo;<I>Partner</I>&rdquo; shall mean the
General Partner or any Limited Partner. &ldquo;<I>Partners</I>&rdquo; shall mean the General Partner and all Limited Partners (unless
otherwise indicated).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.37&nbsp;&nbsp;&ldquo;<I>Partnership</I>&rdquo; shall mean
the limited partnership hereby formed, as such limited partnership may from time to time be constituted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.38&nbsp;&nbsp;&ldquo;<I>Partnership Securities</I>&rdquo;
shall mean any additional Units, options, rights, warrants or appreciation rights relating thereto, or any other type of equity
security that the Partnership may lawfully issue, any unsecured or secured debt obligations of the Partnership or debt obligations
of the Partnership convertible into any class or series of equity securities of the Partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.39&nbsp;&nbsp;&ldquo;<I>Person</I>&rdquo; shall mean any natural
person, partnership, limited partnership, limited liability company, trust, estate, corporation, association, custodian, nominee
or any other individual or entity in its own or any representative capacity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.40&nbsp;&nbsp;&ldquo;<I>Profit or Loss</I>&rdquo; with respect
to any Accounting Period shall mean the excess (if any) of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(a) the Net Asset Value as of the Valuation
Time on the Valuation Date, less</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(b) the Net Asset Value as of the Valuation
Time on the Valuation Date immediately preceding the commencement of such Accounting Period, adjusted as deemed appropriate by
the General Partner to reflect any Capital Contributions, redemptions, withdrawals, distributions, or other events occurring or
accounted for during such Accounting Period (including any allocation of Profit or Loss to a redeeming partner pursuant to Article
4.3.2 with respect to such Accounting Period).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If the amount determined pursuant to the preceding sentence
is a positive number, such amount shall be the &ldquo;Profit&rdquo; for the Accounting Period and if such amount is a negative
number, such amount shall be the &ldquo;Loss&rdquo; for the Accounting Period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.41&nbsp;&nbsp;&ldquo;<I>Prospectus</I>&rdquo; shall mean the
United States Brent Oil Fund, LP prospectus, dated May 27, 2010, as the same may have been amended or supplemented, used in connection
with the offer and sale of Units in the Partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.42&nbsp;&nbsp;&ldquo;<I>Record Date</I>&rdquo; shall mean
the date established by the General Partner for determining (a) the identity of Limited Partners (or Assignees if applicable) entitled
to notice of, or to vote at any meeting of Limited Partners or entitled to vote by ballot or give approval of any Partnership action
in writing without a meeting or entitled to exercise rights in respect of any action of Limited Partners or (b) the identity of
Record Holders entitled to receive any report or distribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.43&nbsp;&nbsp;&ldquo;<I>Record Holder</I>&rdquo; shall mean
the Person in whose name such Unit is registered on the books of the Transfer Agent as of the open of business on a particular
Business Day.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.44&nbsp;&nbsp;&ldquo;<I>Redeemable Units</I>&rdquo; shall
mean any Units for which a redemption notice has been given.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.45&nbsp;&nbsp;&ldquo;<I>Redemption Basket</I>&rdquo; shall
mean 50,000 Units or such other number of Units as may be determined by the General Partner from time to time, redeemed by a Participant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.46&nbsp;&nbsp;&ldquo;<I>Revolving Credit Facility</I>&rdquo;
shall mean a revolving credit facility that the Partnership may enter into on behalf of the Partnership with one or more commercial
banks or other lenders for liquidity or other purposes for the benefit of the Partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.47&nbsp;&nbsp;&ldquo;<I>Substituted Limited Partner</I>&rdquo;
shall mean a Person who is admitted as a Limited Partner to the Partnership pursuant to Article 11.2 in place of and with all the
rights of a Limited Partner and who is shown as a Limited Partner on the books and records of the Partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.48&nbsp;&nbsp;&ldquo;<I>Tax Certificate</I>&rdquo; shall mean
an Internal Revenue Service Form W-9 (or the substantial equivalent thereof) in the case of a Limited Partner that is a U.S. person
within the meaning of the Code, or an Internal Revenue Service Form W-8BEN or other applicable form in the case of a Limited Partner
that is not a U.S. person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.49&nbsp;&nbsp;&ldquo;<I>Transfer Agent</I>&rdquo; shall mean
Brown Brothers Harriman &amp; Co. or such bank, trust company or other Person (including, without limitation, the General Partner
or one of its Affiliates) as shall be appointed from time to time by the Partnership to act as registrar and transfer agent for
the Units or any applicable Partnership Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.50&nbsp;&nbsp;&ldquo;<I>Transfer Application</I>&rdquo; shall
mean an application and agreement for transfer of Units, which shall be substantially in the form attached hereto as Exhibit C.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.51&nbsp;&nbsp;&ldquo;<I>Unit</I>&rdquo; shall mean an interest
of a Limited Partner or an assignee of the Partnership representing such fractional part of the interests of all Limited Partners
and assignees as shall be determined by the General Partner pursuant to this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.52&nbsp;&nbsp;&ldquo;<I>Unit Register</I>&rdquo; shall have
the meaning assigned to such term in Article 9.2.1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.53&nbsp;&nbsp;&ldquo;<I>Unitholders</I>&rdquo; shall mean
the General Partner and all holders of Units, where no distinction is required by the context in which the term is used.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.54&nbsp;&nbsp;&ldquo;<I>Valuation Date</I>&rdquo; shall mean
the last Business Day of any Accounting Period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1.55&nbsp;&nbsp;&ldquo;<I>Valuation Time</I>&rdquo; shall mean
(i) Close of Business on a Valuation Date or (ii) such other time or day as the General Partner in its discretion may determine
from time to time either in any particular case or generally.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE 2</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GENERAL PROVISIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">2.1&nbsp;&nbsp;This Agreement shall become effective on the
date set forth in the preamble of this Agreement. The rights and liabilities of the Partners shall be as set forth in the Act,
except as herein otherwise expressly provided. The Partnership shall continue without interruption as a limited partnership pursuant
to the provisions of the Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">2.2&nbsp;&nbsp;The name of the Partnership shall be United States
Brent Oil Fund, LP; however, the business of the Partnership may be conducted, upon compliance with all applicable laws, under
any other name designated in writing by the General Partner to the Limited Partners.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">2.3&nbsp;&nbsp;The Partnership&rsquo;s principal place of business
shall be located at 1999 Harrison Street, Suite 1530, Oakland, California 94612 or such other place as the General Partner may
designate from time to time. The registered agent for the Partnership is Corporation Service Company and the registered office
is located at 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808, County of New Castle. The Partnership may maintain
such other offices at such other places as the General Partner deems advisable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">2.4&nbsp;&nbsp;The investment objective of the Partnership is
to have the daily changes in percentage terms of the units&rsquo; Net Asset Value reflect the daily changes in percentage terms
of the spot price of light, sweet crude oil as measured by the changes in the price of the Brent Crude Oil futures contract on
light, sweet crude oil as traded on the ICE Futures Exchange that is the near month contract to expire, except when the near month
contract is within two weeks of expiration, in which case the futures contract will be the next month contract to expire, less
the Partnership&rsquo;s expenses. It is not the intent of the Partnership to be operated in a fashion such that its NAV will equal,
in dollar terms, the dollar price of spot crude oil or any particular futures contract based on crude oil. The net assets of the
Partnership will consist primarily of investments in positions in futures contracts for crude oil, diesel-heating oil, gasoline,
natural gas and other petroleum-based fuels that are traded on the ICE Futures Exchange (formerly, the International Petroleum
Exchange), NYMEX, or other U.S. and foreign exchanges (collectively, &ldquo;Futures Contracts&rdquo;). The Partnership may also
take positions in other crude oil-related investments such as cash-settled options on Futures Contracts, forward contracts for
crude oil, and over-the-counter transactions that are based on the price of crude oil and other petroleum-based fuels, Futures
Contracts and indices based on the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">2.5&nbsp;&nbsp;The term of the Partnership shall be from the
date of its formation in perpetuity, unless earlier terminated in accordance with the terms of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">2.6&nbsp;&nbsp;The General Partner shall execute, file and publish
all such certificates, notices, statements or other instruments required by law for the formation or operation of a limited partnership
in all jurisdictions where the Partnership may elect to do business. The General Partner shall not be required to deliver or mail
to the Limited Partners a copy of the certificate of limited partnership of the Partnership or any certificate of amendment thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">2.7&nbsp;&nbsp;The Partnership shall be empowered to do any
and all acts and things necessary, appropriate, proper, advisable, incidental to or convenient for the furtherance and accomplishment
of the purposes, business, protection and benefit of the Partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">2.8&nbsp;&nbsp;The business and affairs of the Partnership shall
be managed by the General Partner in accordance with Article 7 hereof. The General Partner has seven directors, a majority of whom
may also be executive officers of the General Partner. The General Partner shall establish and maintain an audit committee of its
board of directors for the Partnership (the &ldquo;Audit Committee&rdquo;) in compliance with, and granted the requisite authority
and funding pursuant to, any applicable (1) federal securities laws and regulations, including the Sarbanes-Oxley Act of 2002,
and (2) rules, policies and procedures of any national securities exchange on which the securities issued by the Partnership are
listed and traded.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE 3&#8232;&nbsp;&nbsp;&#8232;PARTNERS
AND CAPITAL CONTRIBUTIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">3.1&nbsp;&nbsp;<I>General Partner.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">3.1.1&nbsp;&nbsp;The name of the General Partner is United States
Commodity Funds LLC, which maintains its principal business office at 1999 Harrison Street, Suite 1530, Oakland, California 94612.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.1.2&nbsp;&nbsp;In
consideration of management and administrative services rendered by the General Partner, the Partnership shall pay the Management
Fee to the General Partner (or such other person or entity designated by the General Partner). </FONT>In addition, all ongoing
charges, costs and expenses of the Partnership&rsquo;s operations shall be billed to and paid by the Partnership. Such costs and
expenses, shall include, without limitation, (i)&nbsp;brokerage and other fees and commissions incurred in connection with the
trading activities of the Units of the Partnership, (ii) licensing fees for the use of intellectual property used by the Partnership,
(iii)&nbsp;expenses incurred in connection with registering additional Units of the Partnership or offering Units of the Partnership
after the time any units of Partnership have begun trading on an Exchange; (iv)&nbsp;the routine expenses associated with distribution,
including printing and mailing, of any monthly, annual and other reports to Unitholders required by applicable U.S. federal and
state regulatory authorities; (v)&nbsp;fees and expenses associated with compensation to the directors; (vi)&nbsp;payment for legal
counsel and independent accountants; (vii)&nbsp;payment for fees associated with tax accounting and reporting, routine accounting,
bookkeeping, whether performed by an outside service provider or by Affiliates of the General Partner (viii)&nbsp;postage and insurance,
including directors&rsquo; and officers&rsquo; liability insurance; (ix)&nbsp;costs and expenses associated with client relations
and services; (x)&nbsp;the payment of any distributions related to redemption of Units; and (xi)&nbsp;payment of all federal, state,
local or foreign taxes payable on the income, assets or operations of the Partnership and the preparation of all tax returns related
thereto. <FONT STYLE="font-family: Times New Roman, Times, Serif">The Management Fee shall be 0.75% of NAV. Fees and expenses,
including the Management Fee, are calculated on a daily basis and paid on a monthly basis (accrued at 1/365 of applicable percentage
of NAV on that day). The General Partner may, in its sole discretion, waive all or part of the Management Fee. The Partnership
shall be responsible for all extraordinary expenses (i.e., expenses not in the ordinary course of business, including, without
limitation, the items listed above in this Section 3.1.2, the indemnification of any Person against liabilities and obligations
to the extent permitted by law and required under this Agreement and the bringing and defending of actions at law or in equity
and otherwise engaging in the conduct of litigation and the incurring of legal expense and the settlement of claims and litigation).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">3.1.3&nbsp;&nbsp;In connection with the formation of the Partnership
under the Act, the General Partner acquired a 2% interest in the profits and losses of the Partnership and made an initial capital
contribution to the Partnership in the amount of $20.00, and the Organizational Limited Partner acquired a 98% interest in the
profits and losses of the Partnership and made an initial capital contribution to the Partnership in the amount of $980.00. As
of the date of the initial offering of Units to the public, the interest of the Organizational Limited Partner shall be redeemed,
the initial capital contribution of the Organizational Limited Partner shall be refunded, and the Organizational Limited Partner
shall thereupon withdraw and cease to be a Limited Partner. Ninety-eight percent of any interest or other profit that may have
resulted from the investment or other use of such initial capital contribution was allocated and distributed to the Organizational
Limited Partner, and the balance thereof was allocated and distributed to the General Partner. The General Partner may but shall
not be required to make Capital Contributions to the Partnership on or after the date hereof. If the General Partner does make
a Capital Contribution to the Partnership on or after the date hereof, it shall be issued Units based on the same terms and conditions
applicable to the purchase of a Creation Basket under Article 16 hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">3.1.4&nbsp;&nbsp;The General Partner may not, without written
approval by all of the Limited Partners or by other written instrument executed and delivered by all of the Limited Partners subsequent
to the date of this Agreement, take any action in contravention of this Agreement, including, without limitation, (i) any act that
would make it impossible to carry on the ordinary business of the Partnership, except as otherwise provided in this Agreement;
(ii) possess Partnership property, or assign any rights in specific Partnership property, for other than a Partnership purpose;
(iii) admit a Person as a Partner, except as otherwise provided in this Agreement; (iv) amend this Agreement in any manner, except
as otherwise provided in this Agreement or under applicable law; or (v) transfer its interest as general partner of the Partnership,
except as otherwise provided in this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">3.1.5&nbsp;&nbsp;Except as otherwise provided herein, the General
Partner may not sell, exchange or otherwise dispose of all or substantially all of the Partnership&rsquo;s assets in a single transaction
or a series of related transactions (including by way of merger, consolidation or other combination with any other Person) or approve
on behalf of the Partnership the sale, exchange or other disposition of all or substantially all of the assets of the Partnership,
taken as a whole, without the approval of at least a majority of the Limited Partners; provided, however, that this provision shall
not preclude or limit the General Partner&rsquo;s ability to mortgage, pledge, hypothecate or grant a security interest in all
or substantially all of the Partnership&rsquo;s assets and shall not apply to any forced sale of any or all of the Partnership&rsquo;s
assets pursuant to the foreclosure of, or other realization upon, any such encumbrance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">3.1.6&nbsp;&nbsp;Unless approved by a majority of the Limited
Partners, the General Partner shall not take any action or refuse to take any reasonable action the effect of which, if taken or
not taken, as the case may be, would be to cause the Partnership, to the extent it would materially and adversely affect the Limited
Partners, to be taxable as a corporation for federal income tax purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">3.1.7&nbsp;&nbsp;Notwithstanding any other provision of this
Agreement, the General Partner is not authorized to institute or initiate on behalf of, or otherwise cause the Partnership to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(a) make a general assignment for the benefit
of creditors;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(b) file a voluntary bankruptcy petition;
or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(c) file a petition seeking for the Partnership
a reorganization, arrangement, composition, readjustment liquidation, dissolution or similar relief under any law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">3.2&nbsp;&nbsp;<I>Issuance of Units.</I>&nbsp;&nbsp;Units in
the Partnership will only be issued in a Creation Basket or whole number multiples thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">3.3.&nbsp;&nbsp;<I>Initial Limited Partner.</I>&nbsp;&nbsp;The
Initial Limited Partner was Knight Capital Markets, LLC formerly, Kellogg Capital Markets (<I>&ldquo;Initial Limited Partner&rdquo;</I>)
located at 55 Broadway New York, NY 10006.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">3.4&nbsp;&nbsp;<I>Capital Contribution.</I>&nbsp;&nbsp;Except
as otherwise provided in this Agreement, no Partner shall have any right to demand or receive the return of its Capital Contribution
to the Partnership. No Partner shall be entitled to interest on any Capital Contribution to the Partnership or on such Partner&rsquo;s
Capital Account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE 4&#8232;&nbsp;&nbsp;&#8232;CAPITAL
ACCOUNTS OF PARTNERS AND OPERATION THEREOF</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">4.1&nbsp;&nbsp;<I>Capital Accounts.</I>&nbsp;&nbsp;There shall
be established on the books and records of the Partnership for each Partner (or Beneficial Owner in the case of Units held by a
nominee) a capital account (a &ldquo;<I>Capital Account</I>&rdquo;). It is intended that each Partner&rsquo;s Capital Account shall
be maintained at all times in a manner consistent with Section 704 of the Code and applicable Treasury regulations thereunder,
and that the provisions hereof relating to the Capital Accounts shall be interpreted in a manner consistent therewith. For each
Accounting Period, the Capital Account of each Partner shall be:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(i) credited with the amount of any Capital
Contributions made by such Partner during such Accounting Period;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(ii) credited with any allocation of Profit
made to such Partner for such Accounting Period;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(iii) debited with any allocation of Loss
made to such Partners for such Accounting Period; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(iv) debited with the amount of cash paid
to such Partner as an amount withdrawn or distributed to such Partner during such Accounting Period, or, in the case of any payment
of a withdrawal or distribution in kind, the fair value of the property paid or distributed during such Accounting Period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">4.1.1&nbsp;&nbsp;For any Accounting Period in which Units are
issued or redeemed for cash or other property, the General Partner shall, in accordance with Treasury Regulation Section 1.704-1(b)(2)(iv)(f),
adjust the Capital Accounts of all Partners and the carrying value of each Partnership asset upward or downward to reflect any
unrealized gain or unrealized loss attributable to each such Partnership asset, as if such unrealized gain or unrealized loss had
been recognized on an actual sale of the asset and had been allocated to the Partners at such time pursuant to Article 4.2 of this
Agreement in the same manner as any item of gain or loss actually recognized during such period would have been allocated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">4.1.2&nbsp;&nbsp;To the extent an adjustment to the adjusted
tax basis of any Partnership asset pursuant to Section 734(b) or 743(b) of the Code is required, pursuant to Treasury Regulation
Section 1.704-1(b)(2)(iv)(m), to be taken into account in determining Capital Accounts, the amount of such adjustment to the Capital
Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases
such basis), and such item of gain or loss shall be specially allocated to the Partners in a manner consistent with the manner
in which their Capital Accounts are required to be adjusted pursuant to such Section of the Treasury regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">4.2&nbsp;&nbsp;<I>Allocation of Profit or Loss.</I>&nbsp;&nbsp;Profit
or Loss for an Accounting Period shall be allocated among the Partners in proportion to the number of Units each Partner holds
as of the Close of Business on the last Business Day of such Accounting Period. The General Partner may revise, alter or otherwise
modify this method of allocation to the extent it deems necessary to comply with the requirements of Section 704 or Section 706
of the Code and Treasury regulations or administrative rulings thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">4.3&nbsp;&nbsp;<I>Allocations for Tax Purposes</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">4.3.1&nbsp;&nbsp;Except as otherwise provided in this Agreement,
for each fiscal year of the Partnership, items of income, deduction, gain, loss, and credit recognized by the Partnership for federal
income tax purposes shall be allocated among the Partners in a manner that equitably reflects the amounts credited or debited to
each Partner&rsquo;s Capital Account for each Accounting Period during such fiscal year. Allocations under this Article 4.3 shall
be made by the General Partner in accordance with the principles of Sections 704(b) and 704(c) of the Code and in conformity with
applicable Treasury regulations promulgated thereunder (including, without limitation, Treasury regulations Sections 1.704-1(b)(2)(iv)(f),
1.704-1(b)(4)(i), and 1.704-3(e)).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">4.3.2&nbsp;&nbsp;Notwithstanding anything else contained in
this Article 4, if any Partner has a deficit Capital Account for any Accounting Period as a result of any adjustment of the type
described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(5) or 1.704-1(b)(2)(ii)(d)(6), then the Partnership&rsquo;s income
and gain shall be specially allocated to such Partner in an amount and manner sufficient to eliminate such deficit as quickly as
possible. Any special allocation of items of income or gain pursuant to this Article 4.3.2 shall be taken into account in computing
subsequent allocations pursuant to this Article 4 so that the cumulative net amount of all items allocated to each Partner shall,
to the extent possible, be equal to the amount that would have been allocated to such Partner if there had never been any allocation
pursuant to the first sentence of this Article 4.3.2.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">4.3.3&nbsp;&nbsp;Allocations that would otherwise be made to
a Limited Partner under the provisions of this Article 4 shall instead be made to the Beneficial Owner of Units held by a nominee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">4.4&nbsp;&nbsp;<I>Compliance.</I>&nbsp;&nbsp;In applying the
provisions of this Article 4, the General Partner is authorized to utilize such reasonable accounting conventions, valuation methods
and assumptions as the General Partner shall determine to be appropriate and in compliance with the Code and applicable Treasury
regulations. The General Partner may amend the provisions of this Agreement to the extent it determines to be necessary to comply
with the Code and Treasury regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE 5&#8232;&nbsp;&nbsp;&#8232;RECORDS
AND ACCOUNTING; REPORTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">5.1&nbsp;&nbsp;<I>Records and Accounting.</I>&nbsp;&nbsp;The
Partnership will keep proper books of record and account of the Partnership at its office located in 1999 Harrison Street, Suite
1530, Oakland, California 94612 or such office, including that of an administrative agent, as it may subsequently designate upon
notice to the Limited Partners. These books and records are open to inspection by any person who establishes to the Partnership&rsquo;s
satisfaction that such person is a Limited Partner upon reasonable advance notice at all reasonable times during the usual business
hours of the Partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">5.2&nbsp;&nbsp;<I>Annual Reports.</I>&nbsp;&nbsp;Within 90 days
after the end of each fiscal year, the General Partner shall cause to be delivered to each Person who was a Partner at any time
during the fiscal year, an annual report containing the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(i) financial statements of the Partnership,
including, without limitation, a balance sheet as of the end of the Partnership&rsquo;s fiscal year and statements of income, Partners&rsquo;
equity and changes in financial position, for such fiscal year, which shall be prepared in accordance with generally accepted accounting
principles consistently applied and shall be audited by a firm of independent certified public accountants registered with the
Public Company Accounting Oversight Board,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(ii) a general description of the activities
of the Partnership during the period covered by the report, and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(iii) a report of any material transactions
between the Partnership and the General Partner or any of its Affiliates, including fees or compensation paid by the Partnership
and the services performed by the General Partner or any such Affiliate for such fees or compensation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">5.3&nbsp;&nbsp;<I>Quarterly Reports.</I>&nbsp;&nbsp;Within 45
days after the end of each quarter of each fiscal year, the General Partner shall cause to be delivered to each Person who was
a Partner at any time during the quarter then ended, a quarterly report containing a balance sheet and statement of income for
the period covered by the report, each of which may be unaudited but shall be certified by the General Partner as fairly presenting
the financial position and results of operations of the Partnership during the period covered by the report. The report shall also
contain a description of any material event regarding the business of the Partnership during the period covered by the report.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">5.4&nbsp;&nbsp;<I>Monthly Reports.</I>&nbsp;&nbsp;Within 30
days after the end of each month, the General Partner shall cause to be delivered to each Person who was a Partner at any time
during the month then ended, a monthly report containing an account statement, which will include a statement of income (or loss)
and a statement of changes in NAV, for the prescribed period. In addition, the account statement will disclose any material business
dealings between the Partnership, General Partner, commodity trading advisor (if any), futures commission merchant, or the principals
thereof that previously have not been disclosed in the Partnership&rsquo;s Prospectus or any amendment thereto, other account statements
or annual reports.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">5.5&nbsp;&nbsp;<I>Tax Information.</I>&nbsp;&nbsp;Unless not
required to be provided to a Partner, Assignee or Beneficial Owner under the applicable rules and regulations of the Code, the
General Partner shall use its best efforts to prepare and to transmit a U.S. federal income tax form K-1 for each Partner, Assignee,
or Beneficial Owner or a report setting forth in sufficient detail such transactions effected by the Partnership during each fiscal
year as shall enable each Partner, Assignee, or Beneficial Owner to prepare its U.S. federal income tax return, if any, within
a reasonable period after the end of such fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">5.6&nbsp;&nbsp;<I>Tax Returns.</I>&nbsp;&nbsp;The General Partner
shall cause income tax returns of the Partnership to be prepared and timely filed with the appropriate authorities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">5.7&nbsp;&nbsp;<I>Tax Matters Partner.</I>&nbsp;&nbsp;The General
Partner is hereby designated as the Partnership&rsquo;s &ldquo;Tax Matters Partner,&rdquo; as defined under Section 6231(a)(7)
of the Code. The General Partner is specifically directed and authorized to take whatever steps the General Partner, in its discretion,
deems necessary or desirable to perfect such designation, including filing any forms or documents with the U.S. Internal Revenue
Service and taking such other action as may from time to time be required under U.S. Treasury regulations. Any Partner shall have
the right to participate in any administrative proceedings relating to the determination of Partnership items at the Partnership
level. Expenses of such administrative proceedings undertaken by the Tax Matters Partner shall be expenses of the Partnership.
Each Partner who elects to participate in such proceedings shall be responsible for any expenses incurred by such Partner in connection
with such participation. The cost of any resulting audits or adjustments of a Partner&rsquo;s tax return shall be borne solely
by the affected Partner. In the event of any audit, investigation, settlement or review, for which the General Partner is carrying
out the responsibilities of Tax Matters Partner, the General Partner shall keep the Partners reasonably apprised of the status
and course of such audit, investigation, settlement or review and shall forward copies of all written communications from or to
any regulatory, investigative or judicial authority with regard thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE 6&#8232;&nbsp;&nbsp;&#8232;FISCAL
AFFAIRS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">6.1&nbsp;&nbsp;<I>Fiscal Year.</I>&nbsp;&nbsp;The fiscal year
of the Partnership shall be the calendar year. The General Partner may select an alternate fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">6.2&nbsp;&nbsp;<I>Partnership Funds.</I>&nbsp;&nbsp;Pending
application or distribution, the funds of the Partnership shall be deposited in such bank account or accounts, or invested in such
interest-bearing or non-interest bearing investment, including, without limitation, checking and savings accounts, certificates
of deposit and time or demand deposits in commercial banks, U.S. government securities and securities guaranteed by U.S. government
agencies as shall be designed by the General Partner. Such funds shall not be commingled with funds of any other Person. Withdrawals
therefrom shall be made upon such signatures as the General Partner may designate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">6.3&nbsp;&nbsp;<I>Accounting Decisions.</I>&nbsp;&nbsp;All decisions
as to accounting principles, except as specifically provided to the contrary herein, shall be made by the General Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">6.4&nbsp;&nbsp;<I>Tax Elections.</I>&nbsp;&nbsp;The General
Partner shall, from time to time, make such tax elections as it deems necessary or desirable in its sole discretion to carry out
the business of the Partnership or the purposes of this Agreement. Notwithstanding the foregoing, the General Partner shall make
a timely election under Section 754 of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">6.5&nbsp;&nbsp;<I>Partnership Interests.</I>&nbsp;&nbsp;Title
to the Partnership assets shall be deemed to be owned by the Partnership as an entity, and no Partner or Assignee, individually
or collectively, shall have any ownership interest in such Partnership assets or any portion thereof. Title to any or all of the
Partnership assets may be held in the name of the Partnership, the General Partner or one or more nominees, as the General Partner
may determine. The General Partner hereby declares and warrants that any Partnership assets for which record title is held in the
name of the General Partner shall be held by the General Partner for the exclusive use and benefit of the Partnership in accordance
with the provisions of this Agreement; provided, however, that the General Partner shall use its reasonable efforts to cause record
title to such assets (other than those assets in respect of which the General Partner determines that the expense and difficulty
of conveyancing makes transfer of record title to the Partnership impracticable) to be vested in the Partnership as soon as reasonably
practicable; provided, that prior to the withdrawal or removal of the General Partner or as soon thereafter as practicable, the
General Partner will use reasonable efforts to effect the transfer of record title to the Partnership and, prior to any such transfer,
will provide for the use of such assets in a manner satisfactory to the Partnership. All Partnership assets shall be recorded as
the property of the Partnership in its books and records, irrespective of the name in which record title to such Partnership assets
are held.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE 7&#8232;&nbsp;&nbsp;&#8232;RIGHTS
AND DUTIES OF THE GENERAL PARTNER</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7.1&nbsp;&nbsp;<I>Management Power.</I>&nbsp;&nbsp;The General
Partner shall have exclusive management and control of the business and affairs of the Partnership, and all decisions regarding
the management and affairs of the Partnership shall be made by the General Partner. The General Partner shall have all the rights
and powers of general partner as provided in the Act and as otherwise provided by law. Except as otherwise expressly provided in
this Agreement, the General Partner is hereby granted the right, power and authority to do on behalf of the Partnership all things
which, in its sole judgment, are necessary, proper or desirable to carry out the aforementioned duties and responsibilities, including
but not limited to, the right, power and authority from time to time to do the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(a) the making of any expenditures, the lending
or borrowing of money, the assumption or guarantee of, or other contracting for, indebtedness and other liabilities, the issuance
of evidences of indebtedness and the incurring of any other obligations and the securing of same by mortgage, deed of trust or
other lien or encumbrance;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(b) the making of tax, regulatory and other
filings, or rendering of periodic or other reports to governmental or other agencies having jurisdiction over the business or assets
of the Partnership;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(c) the acquisition, disposition, mortgage,
pledge, encumbrance, hypothecation or exchange of any or all of the assets of the Partnership, or the merger or other combination
of the Partnership with or into another Person (the matters described in this clause (c) being subject, however, to any prior approval
that may be required in accordance with this Agreement);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(d) the use of the assets of the Partnership
(including, without limitation, cash on hand) for any purpose consistent with the terms of this Agreement including, without limitation,
the financing of the conduct of the operations of the Partnership, the lending of funds to other Persons, and the repayment of
obligations of the Partnership;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(e) the negotiation, execution and performance
of any contracts, conveyances or other instruments (including, without limitation, instruments that limit the liability of the
Partnership under contractual arrangements to all or particular assets of the Partnership with the other party to the contract
to have no recourse against the General Partner or its assets other than its interest in the Partnership, even if same results
in the terms of the transaction being less favorable to the Partnership than would otherwise be the case);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(f) the distribution of Distributable Cash;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(g) the selection and dismissal of employees
(including, without limitation, employees having titles such as &ldquo;<I>president,</I>&rdquo; &ldquo;<I>vice president,</I>&rdquo;
&ldquo;<I>secretary</I>&rdquo; and &ldquo;<I>treasurer</I>&rdquo;), agents, outside attorneys, accountants, consultants and contractors
and the determination of their compensation and other terms of employment or hiring;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(h) the maintenance of insurance for the
benefit of the Partners and the Partnership (including, without limitation, the assets and operations of the Partnership);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(i) the formation of, or acquisition of an
interest in, and the contribution of property to, any further limited or general partnerships, joint ventures or other relationships;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(j) the control of any matters affecting
the rights and obligations of the Partnership, including, without limitation, the bringing and defending of actions at law or in
equity and otherwise engaging in the conduct of litigation and the incurring of legal expense and the settlement of claims and
litigation;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(k) the indemnification of any Person against
liabilities and contingencies to the extent permitted by law;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(l) the entering into of listing agreements
with the NYSE Arca, Inc. and any other securities exchange and the delisting of some or all of the Units from, or requesting that
trading be suspended on, any such exchange; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(m) the purchase, sale or other acquisition
or disposition of Units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7.2&nbsp;&nbsp;<I>Best Efforts.</I>&nbsp;&nbsp;The General Partner
will use its best efforts to cause the Partnership to be formed, reformed, qualified or registered under assumed or fictitious
name statutes or similar laws in any state in which the Partnership owns property or transacts business if such formation, reformation,
qualification or registration is necessary in order to protect the limited liability of the Limited Partners or to permit the Partnership
lawfully to own property or transact business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7.3&nbsp;&nbsp;<I>Right of Public to Rely on Authority of a
General Partner.</I>&nbsp;&nbsp;No person shall be required to determine the General Partner&rsquo;s authority to make any undertaking
on behalf of the Partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7.4&nbsp;&nbsp;<I>Obligation of the General Partner.</I>&nbsp;&nbsp;The
General Partner shall:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(a) devote to the Partnership and apply to
the accomplishment of the Partnership purposes so much of its time and attention as is necessary or advisable to manage properly
the affairs of the Partnership;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(b) maintain the Capital Account for each
Partner; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(c) cause the Partnership to enter into and
carry out the obligations of the Partnership contained in the agreements with Affiliates of the General Partner as described in
the Prospectus and cause the Partnership not to take any action in violation of such agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7.5&nbsp;&nbsp;<I>Good Faith.</I>&nbsp;&nbsp;The General Partner
has a responsibility to the Limited Partners to exercise good faith and fairness in all dealings. In the event that a Limited Partner
believes that the General Partner has violated its fiduciary duty to the Limited Partners, he may seek legal relief individually
or on behalf of the Partnership under applicable laws, including under the Act and under securities and commodities laws, to recover
damages from or require an accounting by the General Partner. Limited Partners should be aware that performance by the General
Partner of its fiduciary duty is measured by the terms of this Agreement as well as applicable law. Limited Partners may also have
the right, subject to applicable procedural and jurisdictional requirements, to bring class actions in federal court to enforce
their rights under the federal securities laws and the rules and regulations promulgated thereunder by the SEC. Limited Partners
who have suffered losses in connection with the purchase or sale of the Units may be able to recover such losses from the General
Partner where the losses result from a violation by the General Partner of the federal securities laws. State securities laws may
also provide certain remedies to limited partners. Limited Partners are afforded certain rights to institute reparations proceedings
under the Commodity Exchange Act for violations of the Commodity Exchange Act or of any rule, regulation or order of the Commodity
Futures Trading Commission (&ldquo;<I>CFTC</I>&rdquo;) by the General Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7.6&nbsp;&nbsp;<I>Indemnification&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7.6.1&nbsp;&nbsp;Notwithstanding any other provision of this
Agreement, neither a General Partner nor any employee or other agent of the Partnership nor any officer, director, stockholder,
partner, employee or agent of a General Partner (a &ldquo;<I>Protected Person</I>&rdquo;) shall be liable to any Partner or the
Partnership for any mistake of judgment or for any action or inaction taken, nor for any losses due to any mistake of judgment
or to any action or inaction or to the negligence, dishonesty or bad faith of any officer, director, stockholder, partner, employee
or agent of the Partnership or any officer, director, stockholder, partner, employee or agent of such General Partner, provided
that such officer, director, stockholder, partner, employee or agent of the Partner or officer, director, stockholder, partner,
employee or agent of such General Partner was selected, engaged or retained by such General Partner with reasonable care, except
with respect to any matter as to which such General Partner shall have been finally adjudicated in any action, suit or other proceeding
not to have acted in good faith in the reasonable belief that such Protected Person&rsquo;s action was in the best interests of
the Partnership and except that no Protected Person shall be relieved of any liability to which such Protected Person would otherwise
be subject by reason of willful misfeasance, gross negligence or reckless disregard of the duties involved in the conduct of the
Protected Person&rsquo;s office. A General Partner and its officers, directors, employees or partners may consult with counsel
and accountants (except for the Partnership&rsquo;s independent auditors) in respect of Partnership affairs and be fully protected
and justified in any action or inaction which is taken in accordance with the advice or opinion of such counsel or accountants
(except for the Partnership&rsquo;s independent auditors), provided that they shall have been selected with reasonable care.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Notwithstanding any of the foregoing to the contrary, the provisions
of this Article 7.6.1 and of Article 7.6.2 hereof shall not be construed so as to relieve (or attempt to relieve) a General Partner
(or any officer, director, stockholder, partner, employee or agent of such General Partner) of any liability to the extent (but
only to the extent) that such liability may not be waived, modified or limited under applicable law, but shall be construed so
as to effectuate the provisions of this Article 7.6.1 and of Article 7.6.2 hereof to the fullest extent permitted by law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7.6.2&nbsp;&nbsp;The Partnership shall, to the fullest extent
permitted by law, but only out of Partnership assets, indemnify and hold harmless a General Partner and each officer, director,
stockholder, partner, employee or agent thereof (including persons who serve at the Partnership&rsquo;s request as directors, officers
or trustees of another organization in which the Partnership has an interest as a Unitholder, creditor or otherwise) and their
respective legal representatives and successors (hereinafter referred to as a &ldquo;<I>Covered Person</I>&rdquo;) against all
liabilities and expenses, including but not limited to amounts paid in satisfaction of judgments, in compromise or as fines and
penalties, and counsel fees reasonably incurred by any Covered Person in connection with the defense or disposition of any action,
suit or other proceedings, whether civil or criminal, before any court or administrative or legislative body, in which such Covered
Person may be or may have been involved as a party or otherwise or with which such Covered Person may be or may have been threatened,
while in office or thereafter, by reason of an alleged act or omission as a General Partner or director or officer thereof, or
by reason of its being or having been such a General Partner, director or officer, except with respect to any matter as to which
such Covered Person shall have been finally adjudicated in any such action, suit or other proceeding not to have acted in good
faith in the reasonable belief that such Covered Person&rsquo;s action was in the best interest of the Partnership, and except
that no Covered Person shall be indemnified against any liability to the Partnership or Limited Partners to which such Covered
Person would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties
involved in the conduct of such Covered Person&rsquo;s office. Expenses, including counsel fees so incurred by any such Covered
Person, may be paid from time to time by the Partnership in advance of the final disposition of any such action, suit or proceeding
on the condition that the amounts so paid shall be repaid to the Partnership if it is ultimately determined that the indemnification
of such expenses is not authorized hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As to any matter disposed of by a compromise payment by any
such Covered Person, pursuant to a consent decree or otherwise, no such indemnification either for said payment or for any other
expenses shall be provided unless such compromise shall be approved as in the best interests of the Partnership, after notice that
it involved such indemnification by any disinterested person or persons to whom the questions may be referred by the General Partner,
provided that there has been obtained an opinion in writing of independent legal counsel to the effect that such Covered Person
appears to have acted in good faith in the reasonable belief that his or her action was in the best interests of the Partnership
and that such indemnification would not protect such persons against any liability to the Partnership or its Limited Partners to
which such person would otherwise by subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard
of the duties involved in the conduct of office. Approval by any disinterested person or persons shall not prevent the recovery
from persons of indemnification if such Covered Person is subsequently adjudicated by a court of competent jurisdiction not to
have acted in good faith in the reasonable belief that such Covered Person&rsquo;s action was in the best interests of the Partnership
or to have been liable to the Partnership or its Limited Partners by reason of willful misfeasance, bad faith, gross negligence
or reckless disregard of the duties involved in the conduct of such Covered Person&rsquo;s office.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The right of indemnification hereby provided shall not be exclusive
of or affect any other rights to which any such Covered Person may be entitled. As used in this Article 7.6.2, an &ldquo;<I>interested
Covered Person</I>&rdquo; is one against whom the action, suit or other proceeding on the same or similar grounds is then or has
been pending and a &ldquo;<I>disinterested person</I>&rdquo; is a person against whom no actions, suits or other proceedings or
another action, suit or other proceeding on the same or similar grounds is then or has been pending. Nothing contained in this
Article 7.6.2 shall affect any rights to indemnification to which personnel of a General Partner, other than directors and officers,
and other persons may be entitled by contract or otherwise under law, nor the power of the Partnership to purchase and maintain
liability insurance on behalf of any such person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Nothing in this Article 7.6.2 shall be construed to subject
any Covered Person to any liability to which he or she is not already liable under this Agreement or applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7.6.3&nbsp;&nbsp;Each Limited Partner agrees that it will not
hold any Affiliate or any officer, director, stockholder, partner, employee or agent of any Affiliate of the General Partner liable
for any actions of such General Partner or any obligations arising under or in connection with this Agreement or the transactions
contemplated hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7.7&nbsp;&nbsp;<I>Resolutions of Conflicts of Interest; Standard
of Care.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7.7.1&nbsp;&nbsp;Unless otherwise expressly provided in this
Agreement or any other agreement contemplated hereby, whenever a conflict of interest exists or arises between the General Partner
on the one hand, and the Partnership or any Limited Partner, on the other hand, any resolution or course of action by the General
Partner in respect of such conflict of interest shall be permitted and deemed approved by all Partners and shall not constitute
a breach of this Agreement or of any agreement contemplated hereby or of a duty stated or implied by law or equity, if the resolution
or course of action is, or by operation of this Agreement is deemed to be, fair and reasonable to the Partnership. If a dispute
arises, it will be resolved through negotiations with the General Partner or by a court located in the State of Delaware. Any resolution
of a dispute is deemed to be fair and reasonable to the Partnership if the resolution is:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">approved by the Audit Committee, although no party is obligated to
seek such approval and the General Partner may adopt a resolution or course of action that has not received such approval;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">on terms no less favorable to the Limited Partners than those generally
being provided to or available from unrelated third parties; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">fair to the Limited Partners, taking into account the totality of
the relationships of the parties involved including other transactions that may be particularly favorable or advantageous to the
Limited Partners.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7.7.2&nbsp;&nbsp;Whenever this Agreement or any other agreement
contemplated hereby provides that the General Partner is permitted or required to make a decision (i) in its discretion or under
a grant of similar authority or latitude, the General Partner shall be entitled to the extent permitted by applicable law, to consider
only such interest and factors as it desires and shall have no duty or obligation to give any consideration to any interest of
or factors affecting the partnership or the Limited Partners, or (ii) in its good faith or under another express standard, the
General Partner shall act under such express standard and except as required by applicable law, shall not be subject to any other
different standards imposed by this Agreement, any other agreement contemplated hereby or applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7.8&nbsp;&nbsp;<I>Other Matters Concerning the General Partner.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7.8.1&nbsp;&nbsp;The General Partner (including the Audit Committee)
may rely on and shall be protected in acting or refraining from acting upon any certificate, document or other instrument believed
by it to be genuine and to have been signed or presented by the proper party or parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7.8.2&nbsp;&nbsp;The General Partner (including the Audit Committee)
may consult with legal counsel, accountants, appraisers, management consultants, investment bankers and other consultants and advisors
selected by it and any opinion or advice of any such person as to matters which the General Partner (including the Audit Committee)
believes to be within such person&rsquo;s professional or expert competence shall be the basis for full and complete authorization
of indemnification and provide legal protection with respect to any action taken or suffered or omitted by the General Partner
(including the Audit Committee) hereunder in good faith and in accordance with such opinion or advice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7.8.3&nbsp;&nbsp;The General Partner (including the Audit Committee)
may exercise any of the powers granted to it by this Agreement and perform any of the duties imposed upon it hereunder either directly
or by or through its agents, and the General Partner (including the Audit Committee) shall not be responsible for any misconduct
or negligence on the part of any such agent appointed by the General Partner in good faith.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7.9&nbsp;&nbsp;<I>Other Business Ventures.</I>&nbsp;&nbsp;Any
Partner, director, employee, Affiliate or other person holding a legal or beneficial interest in any entity which is a Partner,
may engage in or possess an interest in other business ventures of every nature and description, independently or with others,
whether such ventures are competitive with the Partnership or otherwise; and, neither the Partnership nor the Partners shall have
any right by virtue of this Agreement in or to such independent ventures or to the income or profits derived there from.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7.10&nbsp;&nbsp;<I>Contracts with the General Partner or its
Affiliates.</I>&nbsp;&nbsp;The General Partner may, on behalf of the Partnership, enter into contracts with any Affiliate. The
validity of any transaction, agreement or payment involving the Partnership and any General Partner or any Affiliate of a General
Partner otherwise permitted by the terms of this Agreement shall not be affected by reason of (i) the relationship between the
Partnership and the Affiliate of the General Partner, or (ii) the approval of said transaction agreement or payment by officers
or directors of the General Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7.11&nbsp;&nbsp;<I>Additional General Partners.</I>&nbsp;&nbsp;Additional
general partners may be admitted with the consent of the General Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE 8&#8232;&nbsp;&nbsp;&#8232;RIGHTS
AND OBLIGATIONS OF LIMITED PARTNERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">8.1&nbsp;&nbsp;<I>No Participation in Management.</I>&nbsp;&nbsp;No
Limited Partner (other than a General Partner if it has acquired an interest of a Limited Partner) shall take part in the management
of the Partnership&rsquo;s business, transact any business in the Partnership&rsquo;s name or have the power to sign documents
for or otherwise bind the Partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">8.2&nbsp;&nbsp;<I>Limitation of Liability.</I>&nbsp;&nbsp;Except
as provided in the Act, the debts, obligations, and liabilities of the Partnership, whether arising in contract, tort or otherwise,
shall be solely the debts, obligations and liabilities of the Partnership. A Limited Partner will not be liable for assessments
in addition to its initial capital investment in any capital securities representing limited partnership interests. However, a
Limited Partner may be required to repay to the Partnership any amounts wrongfully returned or distributed to it under some circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">8.3&nbsp;&nbsp;<I>Indemnification and Terms of Admission.</I>&nbsp;&nbsp;Each
Limited Partner shall indemnify and hold harmless the Partnership, the General Partner and every Limited Partner who was or is
a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceedings, whether civil,
criminal, administrative or investigative, by reason of or arising from any actual or alleged misrepresentation or misstatement
of facts or omission to state facts made (or omitted to be made) by such Limited Partner in connection with any assignment, transfer,
encumbrance or other disposition of all or any part of an interest, or the admission of a Limited Partner to the Partnership, against
expenses for which the Partnership or such other Person has not otherwise been reimbursed (including attorneys&rsquo; fees, judgments,
fines and amounts paid in settlement) actually and reasonably incurred by him in connection with such action, suit or proceeding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">8.4&nbsp;&nbsp;<I>Effective Date.</I>&nbsp;&nbsp;The effective
date of admission of a Limited Partner shall be the date designated by the General Partner in writing to such assignee or transferee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">8.5&nbsp;&nbsp;<I>Death or Incapacity of Limited Partner.</I>&nbsp;&nbsp;The
death or legal incapacity of a Limited Partner shall not cause dissolution of the Partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">8.6&nbsp;&nbsp;<I>Rights of Limited Partner Relating to the
Partnership.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(a) In addition to other rights provided
by this Agreement or by applicable law, and except as otherwise limited under this Agreement, each Limited Partner shall have the
right, for a purpose reasonably related to such Limited Partner&rsquo;s interest as a Limited Partner in the Partnership, upon
reasonable demand and at such Limited Partner&rsquo;s own expense:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(i) to obtain true and full information regarding
the status of the business and financial condition of the Partnership;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(ii) promptly after becoming available, to
obtain a copy of the Partnership&rsquo;s federal, state and local tax returns for each year;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(iii) to have furnished to it, upon notification
to the General Partner, a current list of the name and last known business, residence or mailing address of each Partner;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(iv) to have furnished to it, upon notification
to the General Partner, a copy of this Agreement and the Certificate of Limited Partnership and all amendments thereto;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(v) to obtain true and full information regarding
the amount of cash contributed by and a description and statement of the value of any other Capital Contribution by each Partner
and which each Partner has agreed to contribute in the future, and the date on which each became a Partner; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(vi) to obtain such other information regarding
the affairs of the Partnership as is just and reasonable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(b)&nbsp;&nbsp;Notwithstanding any other
provision of this Agreement, the General Partner may keep confidential from the Limited Partners and Assignees for such period
of time as the General Partner deems reasonable, any information that the General Partner reasonably believes to be in the nature
of trade secrets or other information, the disclosure of which the General Partner in good faith believes is not in the best interests
of the Partnership or could damage the Partnership or that the Partnership is required by law or by agreements with third parties
to keep confidential (other than agreements with Affiliates the primary purpose of which is to circumvent the obligations set forth
in this Article 8.6).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE 9&#8232;&nbsp;&nbsp;&#8232;UNIT
CERTIFICATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">9.1&nbsp;&nbsp;<I>Unit Certificates.</I>&nbsp;&nbsp;Certificates
shall be executed on behalf of the Partnership by any officer either of the General Partner or, if any, of the Partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">9.2&nbsp;&nbsp;<I>Registration Form, Registration of Transfer
and Exchange.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">9.2.1&nbsp;&nbsp;The General Partner shall cause to be kept
on behalf of the Partnership a register (the &ldquo;<I>Unit Register</I>&rdquo;) in which, subject to such reasonable regulations
as it may prescribe, the General Partner will provide for the registration and the transfer of Units. The Transfer Agent has been
appointed registrar and transfer agent for the purpose of registering and transferring Units as herein provided. The Partnership
shall not recognize transfers of Certificates representing Units unless same are effected in the manner&nbsp;described in this Article
9.2. Upon surrender for registration of transfer of any Units evidenced by a Certificate, the General Partner on behalf of the
Partnership will execute, and the Transfer Agent will countersign and deliver, in the name of the holder or the designated transferee
or transferees, as required pursuant to the holder&rsquo;s instructions, one or more new Certificates evidencing the same aggregate
number of Units as was evidenced by the Certificate so surrendered.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">9.2.2&nbsp;&nbsp;<I>Book-Entry-Only System.</I>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(a) <I>Global Certificate Only.</I>&nbsp;&nbsp;Unless
otherwise authorized by the General Partner, Certificates for Units will not be issued, other than the one or more Global Certificates
issued to the Depository. So long as the Depository Agreement is in effect, Creation Baskets will be issued and redeemed and Units
will be transferable solely through the book-entry systems of the Depository and the DTC Participants and their Indirect Participants
as more fully described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(1) <I>Global Certificate.</I>&nbsp;&nbsp;The
Partnership and the General Partner will enter into the Depository Agreement pursuant to which the Depository will act as securities
depository for the Units. Units will be represented by the Global Certificate (which may consist of one or more certificates as
required by the Depository), which will be registered, as the Depository shall direct, in the name of Cede &amp; Co., as nominee
for the Depository and deposited with, or on behalf of, the Depository. No other certificates evidencing Units will be issued.
The Global Certificate shall be in the form attached hereto as Exhibit A and shall represent such Units as shall be specified therein,
and may provide that it shall represent the aggregate amount of outstanding Units from time to time endorsed thereon and that the
aggregate amount of outstanding Units represented thereby may from time to time be increased or decreased to reflect creations
or redemptions of Baskets (as defined in Section 16.1). Any endorsement of a Global Certificate to reflect the amount, or any increase
or decrease in the amount, of outstanding Units represented thereby shall be made in such manner and upon instructions given by
the General Partner on behalf of the Partnership as specified in the Depository Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(2) <I>Legend.</I>&nbsp;&nbsp;Any Global
Certificate issued to the Depository or its nominee shall bear a legend substantially to the following effect:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&ldquo;UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (&ldquo;DTC&rdquo;), TO THE FUND OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &amp; CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &amp; CO. OR TO SUCH OTHER ENTITY AS IS
REQUIRED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &amp; CO., HAS AN INTEREST HEREIN.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(3) <I>The Depository.</I>&nbsp;&nbsp;The Depository has advised
the Partnership and the General Partner as follows: the Depository is a limited-purpose trust company organized under the laws
of the State of New York, a member of the U.S. Federal Reserve System, a &ldquo;<I>clearing corporation</I>&rdquo; within the meaning
of the New York Uniform Commercial Code, and a &ldquo;<I>clearing agency</I>&rdquo; registered pursuant to the provisions of Section
17A of the Securities Exchange Act of 1934, as amended. The Depository was created to hold securities of DTC Participants and to
facilitate the clearance and settlement of securities transactions among the DTC Participants in such securities through electronic
book-entry changes in accounts of the DTC Participants, thereby eliminating the need for physical movement of securities certificates.
&ldquo;<I>DTC Participants</I>&rdquo; include securities brokers and dealers, banks, trust companies, clearing corporations, and
certain other organizations, some of whom (and/or their representatives) own the Depository. Access to the Depository&rsquo;s system
is also available to others such as banks, brokers, dealers and trust companies that clear through or maintain a custodial relationship
with a DTC Participant, either directly or indirectly (&ldquo;<I>Indirect Participants</I>&rdquo;). The Depository may determine
to discontinue providing its service with respect to Creation Baskets and Units by giving notice to the General Partner pursuant
to and in conformity with the provisions of the Depository Agreement and discharging its responsibilities with respect thereto
under applicable law. Under such circumstances, the General Partner shall take action either to find a replacement for the Depository
to perform its functions at a comparable cost and on terms acceptable to the General Partner or, if such a replacement is unavailable,
to terminate the Partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(4) <I>Beneficial Owners.</I>&nbsp;&nbsp;As
provided in the Depository Agreement, upon the settlement date of any creation, transfer or redemption of Units, the Depository
will credit or debit, on its book-entry registration and transfer system, the number of Units so created, transferred or redeemed
to the accounts of the appropriate DTC Participants. The accounts to be credited and charged shall be designated by the General
Partner on behalf of the Partnership and each Participant, in the case of a creation or redemption of Baskets. Ownership of beneficial
interest in Units will be limited to DTC Participants, Indirect Participants and persons holding interests through DTC Participants
and Indirect Participants. Beneficial Owners will be shown on, and the transfer of beneficial ownership by Beneficial Owners will
be effected only through, in the case of DTC Participants, records maintained by the Depository and, in the case of Indirect Participants
and Beneficial Owners holding through a DTC Participant or an Indirect Participant, through those records or the records of the
relevant DTC Participants. Beneficial Owners are expected to receive, from or through the broker or bank that maintains the account
through which the Beneficial Owner has purchased Units, a written confirmation relating to their purchase of Units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(5) <I>Reliance on Procedures.</I>&nbsp;&nbsp;Except
for those who have provided Transfer Applications to the General Partner, so long as Cede &amp; Co., as nominee of the Depository,
is the registered owner of Units, references herein to the registered or record owners of Units shall mean Cede &amp; Co. and shall
not mean the Beneficial Owners of Units. Beneficial Owners of Units will not be entitled to have Units registered in their names,
will not receive or be entitled to receive physical delivery of certificates in definitive form and will not be considered the
record or registered holder of Units under this Agreement. Accordingly, to exercise any rights of a holder of Units under the Agreement,
a Beneficial Owner must rely on the procedures of the Depository and, if such Beneficial Owner is not a DTC Participant, on the
procedures of each DTC Participant or Indirect Participant through which such Beneficial Owner holds its interests. The Partnership
and the General Partner understand that under existing industry practice, if the Partnership requests any action of a Beneficial
Owner, or a Beneficial Owner desires to take any action that the Depository, as the record owner of all outstanding Units, is entitled
to take, the Depository will notify the DTC Participants regarding such request, such DTC Participants will in turn notify each
Indirect Participant holding Units through it, with each successive Indirect Participant continuing to notify each person holding
Units through it until the request has reached the Beneficial Owner, and in the case of a request or authorization to act that
is being sought or given by a Beneficial Owner, such request or authorization is given by the Beneficial Owner and relayed back
to the Partnership through each Indirect Participant and DTC Participant through which the Beneficial Owner&rsquo;s interest in
the Units is held.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(6) <I>Communication between the Partnership
and the Beneficial Owners.</I>&nbsp;&nbsp;As described above, the Partnership will recognize the Depository or its nominee as the
owner of all Units for all purposes except as expressly set forth in this Agreement. Conveyance of all notices, statements and
other communications to Beneficial Owners will be effected in accordance with this paragraph. Pursuant to the Depository Agreement,
the Depository is required to make available to the Partnership, upon request and for a fee to be charged to the Partnership, a
listing of the Unit holdings of each DTC Participant. The Partnership shall inquire of each such DTC Participant as to the number
of Beneficial Owners holding Units, directly or indirectly, through such DTC Participant. The Partnership shall provide each such
DTC Participant with sufficient copies of such notice, statement or other communication, in such form, number and at such place
as such DTC Participant may reasonably request, in order that such notice, statement or communication may be transmitted by such
DTC Participant, directly or indirectly, to such Beneficial Owners. In addition, the Partnership shall pay to each such DTC Participant
an amount as reimbursement for the expenses attendant to such transmittal, all subject to applicable statutory and regulatory requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(7) <I>Distributions.</I>&nbsp;&nbsp;Distributions
on Units pursuant to this Agreement shall be made to the Depository or its nominee, Cede &amp; Co., as the registered owner of
all Units. The Partnership and the General Partner expect that the Depository or its nominee, upon receipt of any payment of distributions
in respect of Units, shall credit immediately DTC Participants&rsquo; accounts with payments in amounts proportionate to their
respective beneficial interests in Units as shown on the records of the Depository or its nominee. The Partnership and the General
Partner also expect that payments by DTC Participants to Indirect Participants and Beneficial Owners held through such DTC Participants
and Indirect Participants will be governed by standing instructions and customary practices, as is now the case with securities
held for the accounts of customers in bearer form or registered in a &ldquo;<I>street name,</I>&rdquo; and will be the responsibility
of such DTC Participants and Indirect Participants. Neither the Partnership nor the General Partner will have any responsibility
or liability for any aspects of the records relating to or notices to Beneficial Owners, or payments made on account of beneficial
ownership interests in Units, or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests
or for any other aspect of the relationship between the Depository and the DTC Participants or the relationship between such DTC
Participants and the Indirect Participants and Beneficial Owners owning through such DTC Participants or Indirect Participants
or between or among the Depository, any Beneficial Owner and any person by or through which such Beneficial Owner is considered
to own Units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(8) <I>Limitation of Liability.</I>&nbsp;&nbsp;The
Global Certificate to be issued hereunder is executed and delivered solely on behalf of the Partnership by the General Partner
in its capacity as such and in the exercise of the powers and authority conferred and vested in it by this Agreement. The representations,
undertakings and agreements made on the part of the Partnership in the Global Certificate are made and intended not as personal
representations, undertakings and agreements by the General Partner, but are made and intended for the purpose of binding only
the Partnership. Nothing in the Global Certificate shall be construed as creating any liability on the General Partner, individually
or personally, to fulfill any representation, undertaking or agreement other than as provided in this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(9) <I>Successor Depository.</I>&nbsp;&nbsp;If
a successor to the Depository shall be employed as Depository hereunder, the Partnership and the General Partner shall establish
procedures acceptable to such successor with respect to the matters addressed in this Section 9.2.2.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(10) <I>Transfer of Units.</I>&nbsp;&nbsp;Beneficial
Owners that are not DTC Participants may transfer Units by instructing the DTC Participant or Indirect Participant holding the
Units for such Beneficial Owner in accordance with standard securities industry practice. Beneficial Owners that are DTC Participants
may transfer Units by instructing the Depository in accordance with the rules of the Depository and standard securities industry
practice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">9.2.3&nbsp;&nbsp;Except as otherwise provided in this Agreement,
the Partnership shall not recognize any transfer of Units until the Certificates (if applicable) and a Transfer Application have
been provided to the General Partner evidencing such Units are surrendered for registration of transfer. Such Certificates must
be accompanied by a Transfer Application duly executed by the transferee (or the transferee&rsquo;s attorney-in-fact duly authorized
in writing). No charge shall be imposed by the Partnership for such transfer, provided, that, as a condition to the issuance of
any new Certificate under this Article 9.2, the General Partner may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed with respect thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">9.3&nbsp;&nbsp;<I>Mutilated, Destroyed, Lost or Stolen Certificates.&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">9.3.1&nbsp;&nbsp;If any mutilated Certificate is surrendered
to the Transfer Agent, the General Partner on behalf of the Partnership, shall execute, and upon its request, the Transfer Agent
shall countersign and deliver in exchange therefore, a new Certificate evidencing the same number of Units as the Certificate so
surrendered.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">9.3.2&nbsp;&nbsp;The General Partner, on behalf of the Partnership,
shall execute, and upon its request, the Transfer Agent shall countersign and deliver a new Certificate in place of any Certificate
previously issued if the Record Holder of the Certificate:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(a) makes proof by affidavit, in form and
substance satisfactory to the General Partner, that a previously issued Certificate has been lost, destroyed or stolen;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(b) requests the issuance of a new Certificate
before the Partnership has received notice that the Certificate has been acquired by a purchaser for value in good faith and without
notice of an adverse claim;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(c) if requested by the General Partner,
delivers to the Partnership a bond or such other form of security or indemnity as may be required by the General Partner, in form
and substance satisfactory to the General Partner, with surety or sureties and with fixed or open penalty as the General Partner
may direct, in its sole discretion, to indemnify the Partnership, the General Partner and the Transfer Agent against any claim
that may be made on account of the alleged loss, destruction or theft of the Certificate; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(d) satisfies any other reasonable requirements
imposed by the General Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">If a Limited Partner or Assignee fails to
notify the Partnership within a reasonable time after it has notice of the loss, destruction or theft of a Certificate, and a transfer
of the Units represented by the Certificate is registered before the Partnership, the General Partner or the Transfer Agent receives
such notification, the Limited Partner or Assignee shall be precluded from making any claim against the Partnership, the General
Partner or the Transfer Agent for such transfer or for a new Certificate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">9.3.3&nbsp;&nbsp;As a condition to the issuance of any new Certificate
under this Article 9.3, the General Partner may require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including, without limitation, the fees and expenses of
the Transfer Agent) connected therewith.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">9.4&nbsp;&nbsp;<I>Record Holder.</I>&nbsp;&nbsp;The Partnership
shall be entitled to recognize the Record Holder as the Limited Partner or Assignee with respect to any Units and, accordingly,
shall not be bound to recognize any equitable or other claim to or interest in such Units on the part of any other Person, whether
or not the Partnership shall have actual or other notice thereof, except as otherwise provided by law or any applicable rule, regulation,
guideline or requirement of any national securities exchange on which the Units are listed for trading. Without limiting the foregoing,
when a Person (such as a broker, dealer, bank trust company or clearing corporation or an agent of any of the foregoing) is acting
as nominee, agent or in some other representative capacity for another Person in acquiring and/or holding Units, as between the
Partnership on the one hand and such other Persons on the other hand such representative Person (a) shall be the Limited Partner
or Assignee (as the case may be) of record and beneficially, (b) must execute and deliver a Transfer Application and (c) shall
be bound by this Agreement and shall have the rights and obligations of a Limited Partner or Assignee (as the case may be) hereunder
and as provided for herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">9.5&nbsp;&nbsp;<I>Partnership Securities.</I>&nbsp;&nbsp;The
General Partner is hereby authorized to cause the Partnership to issue Partnership Securities, for any Partnership purpose, at
any time or from time to time, to the Partners or to other Persons for such consideration and on such terms and conditions as shall
be established by the General Partner in its sole discretion, all without the approval of any Limited Partners. The General Partner
shall have sole discretion, subject to the requirements of the Act, in determining the consideration and terms and conditions with
respect to any future issuance of Partnership Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">9.5.1&nbsp;&nbsp;The General Partner shall do all things necessary
to comply with the Act and is authorized and directed to do all things it deems to be necessary or advisable in connection with
any future issuance of Partnership Securities, including, without limitation, compliance with any statute, rule, regulation or
guideline of any federal, state or other governmental agency or any national securities exchange on which the Units or other Partnership
Securities are listed for trading.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE 10&#8232;&nbsp;&nbsp;&#8232;TRANSFER
OF INTERESTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10.1&nbsp;&nbsp;<I>Transfer.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10.1.1&nbsp;&nbsp;The term &ldquo;transfer,&rdquo; when used
in this Article 10 with respect to an interest, shall be deemed to refer to an appropriate transaction by which the General Partner
assigns its interest as General Partner to another Person or by which the holder of a Unit assigns such Unit to another Person
who is or becomes an Assignee and includes a sale, assignment, gift, pledge, encumbrance, hypothecation, mortgage, exchange or
any other disposition by law or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10.1.2&nbsp;&nbsp;No interest shall be transferred in whole
or in part, except in accordance with the terms and conditions set forth in this Article 10. Any transfer or purported transfer
of an interest not made in accordance with this Article 10 shall be null and void.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10.2&nbsp;&nbsp;<I>Transfer of General Partner&rsquo;s Interest.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10.2.1&nbsp;&nbsp;Except as set forth in this Article 10.2.1,
the General Partner may transfer all, but not less than all, of its interest as the general partner to a single transferee if,
but only if, (i) at least a majority of the Limited Partners approve of such transfer and of the admission of such transferee as
general partner, (ii) the transferee agrees to assume the rights and duties of the General Partner and be bound by the provisions
of this Agreement and other applicable agreements, and (iii) the Partnership receives an Opinion of Counsel that such transfer
would not result in the loss of limited liability of any Limited Partner or of the Partnership or cause the Partnership to be taxable
as a corporation or otherwise taxed as an entity for federal income tax purposes. The foregoing notwithstanding, the General Partner
is expressly permitted to pledge its interest as General Partner to secure the obligations of the Partnership under a Revolving
Credit Facility, as the same may be amended, supplemented, replaced, refinanced or restated from time to time, or any successor
or subsequent loan agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10.2.2&nbsp;&nbsp;Neither Article 10.2.1 nor any other provision
of this Agreement shall be construed to prevent (and all Partners do hereby consent to) (i) the transfer by the General Partner
of all of its interest as a general partner to an Affiliate or (ii) the transfer by the General Partner of all its interest as
a general partner upon its merger or consolidation with or other combination into any other Person or the transfer by it of all
or substantially all of its assets to another Person if, in the case of a transfer described in either clause (i) or (ii) of this
sentence, the rights and duties of the General Partner with respect to the interest so transferred are assumed by the transferee
and the transferee agrees to be bound by the provisions of this Agreement; provided, that in either such case, such transferee
furnishes to the Partnership an Opinion of Counsel that such merger, consolidation, combination, transfer or assumption will not
result in a loss of limited liability of any Limited Partner or of the Partnership or cause the Partnership to be taxable as a
corporation or otherwise taxed as an entity for federal income tax purpose. In the case of a transfer pursuant to this Article
10.2.2, the transferee or successor (as the case may be) shall be admitted to the Partnership as the General Partner immediately
prior to the transfer of the interest, and the business of the Partnership shall continue without dissolution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10.3&nbsp;&nbsp;<I>Transfer of Units.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10.3.1&nbsp;&nbsp;Units may be transferred only in the manner
described in Article 9.2. The transfer of any Units and the admission of any new Partner shall not constitute an amendment to this
Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10.3.2&nbsp;&nbsp;Until admitted as a Substituted Limited Partner
pursuant to Article 11, the Record Holder of a Unit shall be an Assignee in respect of such Unit. Limited Partners may include
custodians, nominees or any other individual or entity in its own or any representative capacity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10.3.3&nbsp;&nbsp;Each distribution in respect of Units shall
be paid by the Partnership, directly or through the Transfer Agent or through any other Person or agent, only to the Record Holders
thereof as of the Record Date set for the distribution. Such payment shall constitute full payment and satisfaction of the Partnership&rsquo;s
liability in respect of such payment, regardless of any claim of any Person who may have an interest in such payment by reason
of an assignment or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10.3.4&nbsp;&nbsp;A transferee who has completed and delivered
a Transfer Application provided by the seller of the Units (or if purchased on an exchange directly from the Partnership), shall
be deemed to have (i) requested admission as a Substituted Limited Partner, (ii) agreed to comply with and be bound by and to have
executed this Agreement, (iii) represented and warranted that such transferee has the capacity and authority to enter into this
Agreement, (iv) made the powers of attorney set forth in this Agreement, and (v) given the consents and made the waivers contained
in this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10.4&nbsp;&nbsp;<I>Restrictions on Transfers.</I>&nbsp;&nbsp;Notwithstanding
the other provisions of this Article 10, no transfer of any Unit or interest therein of any Limited Partner or Assignee shall be
made if such transfer would (a) violate the then applicable federal or state securities laws or rules and regulations of the SEC,
any state securities commission, the CFTC, or any other governmental authorities with jurisdiction over such transfer, (b) cause
the Partnership to be taxable as a corporation or (c) affect the Partnership&rsquo;s existence or qualification as a limited partnership
under the Act. The General Partner may request each Record Holder to furnish certain information, including that holder&rsquo;s
nationality, citizenship or other related status. A transferee who is not a U.S. resident may not be eligible to become a Record
Holder or a Limited Partner if such ownership would subject the Partnership to the risk of cancellation or forfeiture of any of
its assets under any federal, state or local law or regulation. If the Record Holder fails to furnish the information or if the
General Partner determines, on the basis of the information furnished by the holder in response to the request, that such holder
is not qualified to become a Limited Partner, the General Partner may be substituted as a holder for the Record Holder, who will
then be treated as a non-citizen assignee, and the Partnership will have the right to redeem those securities held by the Record
Holder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10.5&nbsp;&nbsp;<I>Tax Certificates.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10.5.1&nbsp;&nbsp;All Limited Partners or Assignees (or, if
the Limited Partner or Assignee is a nominee holding for the account of a Beneficial Owner, the Beneficial Owner) are required
to provide the Partnership with a properly completed Tax Certificate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10.5.2&nbsp;&nbsp;If a Limited Partner or Assignee (or, if the
Limited Partner or Assignee is a nominee holding for the account of a Beneficial Owner, the Beneficial Owner) fails to provide
the Partnership with a properly completed Tax Certificate, the General Partner may request at any time and from time to time, that
such Limited Partner or Assignee (or Beneficial Owner) shall, within 15 days after request (whether oral or written) therefore
by the General Partner, furnish to the Partnership, a properly completed Tax Certificate. If a Limited Partner or Assignee fails
to furnish to the General Partner within the aforementioned 15-day period such Tax Certificate, the Units owned by such Limited
Partner or Assignee (or in the case of a Limited Partner or Assignee that holds Units on behalf of a Beneficial Owner, the Units
held on behalf of the Beneficial Owner) shall be subject to redemption in accordance with the provisions of Article 10.6.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10.6&nbsp;&nbsp;<I>Redemption of Units for Failure to Provide
Tax Certificate.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10.6.1&nbsp;&nbsp;If at any time a Limited Partner or Assignee
fails to furnish a properly completed Tax Certificate within the 15-day period specified in Article 10.5.2, the Partnership may
redeem the Units of such Limited Partner or Assignee as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(a) The General Partner shall not later than
the tenth (10<SUP>th</SUP>) Business Day before the date fixed for redemption, give notice of redemption to the Limited Partner
or Assignee, at its last address designated on the records of the Partnership or the Transfer Agent, by registered or certified
mail, postage prepaid. The notice shall be deemed to have been given when so mailed (the &ldquo;<I>Notice Date</I>&rdquo;). The
notice shall specify the Redeemable Units, the date fixed for redemption, the place of payment, and that payment of the redemption
price will be made upon surrender of the certification evidencing the Redeemable Units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(b) The aggregate redemption price for Redeemable Units shall
be an amount equal to the market price as of the Close of Business on the Business Day immediately prior to the date fixed for
redemption of Units to be so redeemed multiplied by the number of Units included among the Redeemable Units. The redemption price
shall be paid in the sole discretion of the General Partner, in cash or by delivery of a promissory note of the Partnership in
the principal amount of the redemption price, bearing interest at the Prime Rate (as established by the Federal Reserve Board)
and payable in three equal annual installments of principal together with accrued interest commencing one year after the redemption
date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(c) Upon surrender by or on behalf of the
Limited Partner or Assignee, at the place specified in the notice of redemption, of the certification evidencing the Redeemable
Units, duly endorsed in blank or accompanied by an assignment duly executed in blank, the Limited Partner or Assignee or its duly
authorized representative shall be entitled to receive the payment therefore.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(d) In the event the Partnership is required
to pay withholding tax or otherwise withhold any amount on behalf of, or with respect to, a Limited Partner or Assignee (or Beneficial
Owner) who has failed to provide a properly completed Tax Certificate, such amounts paid or withheld by the Partnership shall be
deemed to have been paid to such Limited Partner or Assignee (or Beneficial Owner) as part of the redemption price for the Redeemable
Units and the Partnership shall reduce the amount of the payment made to such Limited Partner or Assignee (or Beneficial owner)
in redemption of such Redeemable Units by any amounts so withheld.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10.6.2&nbsp;&nbsp;After the Notice Date, Redeemable Units shall
no longer constitute issued and Outstanding Units and no allocations or distributions shall be made with respect to such Redeemable
Units. In addition, after the Notice Date, the Redeemable Units shall not be transferable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">10.6.3&nbsp;&nbsp;The provisions of this Article 10.6 shall
also be applicable to Units held by a Limited Partner or Assignee as nominee of a Beneficial Owner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE 11&#8232;&nbsp;&nbsp;&#8232;ADMISSION
OF PARTNERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">11.1&nbsp;&nbsp;<I>Admission of Initial Limited Partners and
Other Creation Basket Purchases.</I>&nbsp;&nbsp;Subject to the requirements of this Article 11, upon the issuance by the Partnership
of Units to the Initial Limited Partner and any other purchasers of a Creation Basket, the General Partner shall admit the Initial
Limited Partner and such other purchasers of the Creation Basket to the Partnership as Limited Partners in respect of the Units
purchased.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">11.2&nbsp;&nbsp;<I>Admission of Substituted Limited Partners.</I>&nbsp;&nbsp;By
transfer of a Unit in accordance with Article 10, the transferor shall be deemed to have given the transferee the right to seek
admission as a Substituted Limited Partner subject to the conditions of, and in the manner permitted under, this Agreement. A transferor
of a Certificate shall, however, only have the authority to convey to a purchaser or other transferee who does not execute and
deliver a Transfer Application (i) the right to negotiate such Certificate to a purchaser or other transferee, and (ii) the right
to transfer the right to request admission as a Substituted Limited Partner to such purchaser or other transferee in respect of
the transferred Units. Each transferee of a Unit (including, without limitation, any nominee holder or an agent acquiring such
Unit for the account of another Person) who executes and delivers a Transfer Application shall, by virtue of such execution and
delivery, be an Assignee and be deemed to have applied to become a Substituted Limited Partner with respect to the Units so transferred
to such Person. Such Assignee shall become a Substituted Limited Partner (i) at such time as the General Partner consents thereto,
which consent may be given or withheld in the General Partner&rsquo;s sole discretion, and (ii) when any such admission is shown
on the books and records of the Partnership, following the consent of the General Partner to such admission.If such consent is
withheld, such transferee shall be an Assignee. An Assignee shall have an interest in the Partnership equivalent to that of a Limited
Partner with respect to allocations and distributions, including, without limitation, liquidating distributions, of the Partnership.
With respect to voting rights attributable to Units that are held by Assignees, the General Partner shall be deemed to be the Limited
Partner with respect thereto and shall, in exercising the voting rights in respect of such Units on any matter, vote such Units
at the written direction of the Assignee who is the Record Holder of such Units. If no such written direction is received, such
Units will not be voted. An Assignee shall have none of the other rights of a Limited Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">11.3&nbsp;&nbsp;<I>Admission of Successor General Partner.</I>&nbsp;&nbsp;A
successor General Partner approved pursuant to this Article 11.3 or the transferee of or successor to all of the General Partner&rsquo;s
interest pursuant to Article 10.2 who is proposed to be admitted as a successor General Partner shall be admitted to the Partnership
as the General Partner, effective immediately prior to the withdrawal or removal of the General Partner pursuant to Article 12
or the transfer of the General Partner&rsquo;s interest pursuant to Article 10.2; provided, however, that no such successor shall
be admitted to the Partnership until compliance with the terms of Article 10.2 has occurred. Any such successor shall carry on
the business of the Partnership without dissolution. In each case, the admission shall be subject to the successor General Partner
executing and delivering to the Partnership an acceptance of all of the terms and conditions of this Agreement and such other documents
or instruments as may be required to effect the admission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">11.4&nbsp;&nbsp;<I>Admission of Additional Limited Partners.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">11.4.1&nbsp;&nbsp;A Person (other than the General Partner,
an Initial Limited Partner or a Substituted Limited Partner) who makes a Capital Contribution to the Partnership in accordance
with this Agreement shall be admitted to the Partnership as an Additional Limited Partner only upon furnishing to the General Partner
(i) evidence of acceptance in form satisfactory to the General Partner of all of the terms and conditions of this Agreement, including,
without limitation, the power of attorney granted in this Agreement, and (ii) such other documents or instruments as may be required
in the discretion of the General Partner to effect such Person&rsquo;s admission as an Additional Limited Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">11.4.2&nbsp;&nbsp;Notwithstanding anything to the contrary in
this Article 11.4, no Person shall be admitted as an Additional Limited Partner without the consent of the General Partner, which
consent may be given or withheld in the General Partner&rsquo;s sole discretion. The admission of any Person as an Additional Limited
Partner shall become effective on the date upon which the name of such Person is recorded on the books and records of the Partnership,
following the consent of the General Partner to such admission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">11.5&nbsp;&nbsp;<I>Amendment of Agreement and Certificate of
Limited Partnership.</I>&nbsp;&nbsp;To effect the admission to the Partnership of any Partner, the General Partner shall take all
steps necessary and appropriate under the Act to amend the records of the Partnership and if necessary, to prepare as soon as practical
an amendment of this Agreement and if required by law, to prepare and file an amendment to the Certificate of Limited Partnership
and may for this purpose, among others, exercise the power of attorney granted pursuant to Article 15.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE 12&#8232;&nbsp;&nbsp;&#8232;WITHDRAWAL
OR REMOVAL OF PARTNERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">12.1&nbsp;&nbsp;<I>Withdrawal of the General Partner.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">12.1.1&nbsp;&nbsp;The General Partner shall be deemed to have
withdrawn from the Partnership upon the occurrence of any one of the following events (each such event herein referred to as an
&ldquo;Event of Withdrawal&rdquo;):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(a) the General Partner voluntarily withdraws
from the Partnership by giving written notice to the other Partners;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(b) the General Partner transfers all of
its rights as general partner pursuant to this Agreement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(c) the General Partner is removed;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 22.5pt; text-indent: -2.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 22.5pt; text-indent: -2.5pt">(d) the General Partner (1)
makes a general assignment for the benefit of creditors; (2) files a voluntary bankruptcy petition; (3) files a petition or answer
seeking for itself a reorganization, arrangement, composition, readjustment liquidation, dissolution or similar relief under any
law; (4) files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against
the General Partner in a proceeding of the type described in clauses (1)&nbsp;&ndash;&nbsp;(3) of this sentence; or (5) seeks,
consents to or acquiesces in the appointment of a trustee, receiver or liquidator of the General Partner or of all or any substantial
part of its properties;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(e) a final and non-appealable judgment is
entered by a court with appropriate jurisdiction ruling that the General Partner is bankrupt or insolvent or a final and non-appealable
order for relief is entered by a court with appropriate jurisdiction against the General Partner, in each case under any federal
or state bankruptcy or insolvency laws as now or hereafter in effect; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(f) a certificate of dissolution or its equivalent
is filed for the General Partner, or 90 days expire after the date of notice to the General Partner of revocation of its charter
without a reinstatement of its charter, under the laws of its state of incorporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If an Event of Withdrawal specified in this Article 12.1.1(d),
(e) or (f) occurs, the withdrawing General Partner shall give written notice to the Limited Partners within 30 days after such
occurrence. The Partners hereby agree that only the Events of Withdrawal described in this Article 12.1 shall result in the withdrawal
of the General Partner from the Partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">12.1.2&nbsp;&nbsp;Withdrawal of the General Partner from the
Partnership upon the occurrence of an Event of Withdrawal will not constitute a breach of this Agreement under the following circumstances:
(i) the General Partner voluntarily withdraws by giving at least 90 days&rsquo; advance notice to the Limited Partners, such withdrawal
to take effect on the date specified in such notice; or (ii) at any time that the General Partner ceases to be a General Partner
pursuant to Article 12.1.1(b) or is removed pursuant to Article 12.2. If the General Partner gives a notice of withdrawal pursuant
to Article 12.1.1(a), holders of at least a majority of such Outstanding Units (excluding for purposes of such determination any
Units owned by the General Partner and its Affiliates) may, prior to the effective date of such withdrawal, elect a successor General
Partner. If, prior to the effective date of the General Partner&rsquo;s withdrawal, a successor is not selected by the Unitholders
as provided herein, the Partnership shall be dissolved in accordance with Article 13. If a successor General Partner is elected,
such successor shall be admitted immediately prior to the effective time of the withdrawal or removal of the Departing Partner
and shall continue the business of the Partnership without dissolution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">12.2&nbsp;&nbsp;<I>Removal of the General Partner.</I>&nbsp;&nbsp;The
General Partner may be removed only if such removal is approved by the Unitholders holding at least 66&nbsp;2/3% of the Outstanding
Units (excluding for this purpose any Units held by the General Partner and its Affiliates). Any such action by such holders for
removal of the General Partner must also provide for the election of a successor General Partner by the Unitholders holding a majority
of the Outstanding Units (excluding for this purpose any Units held by the General Partner and its Affiliates). Such removal shall
be effective immediately following the admission of a successor General Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">12.3&nbsp;&nbsp;<I>Withdrawal of a Limited Partner other than
the Organizational Limited Partner.</I>&nbsp;&nbsp;In addition to withdrawal of a Limited Partner due to its redemption of Units
constituting a Redemption Basket under this Agreement, the General Partner may, at any time, in its sole discretion, require any
Limited Partner to withdraw entirely from the Partnership or to withdraw a portion of its Partner Capital Account, by giving not
less than 15 days&rsquo; advance written notice to the Limited Partner thus designated. In addition, the General Partner without
notice may require at any time, or retroactively, withdrawal of all or any portion of the Capital Account of any Limited Partner:
(i) that made a misrepresentation to the General Partner in connection with its purchase of Units; or (ii) whose ownership of Units
would result in the violation of any law or regulations applicable to the Partnership or a Partner. The Limited Partner thus designated
shall withdraw from the Partnership or withdraw that portion of its Partner Capital Account specified in such notice, as the case
may be, as of the Close of Business on such date as determined by the General Partner. The Limited Partner thus designated shall
be deemed to have withdrawn from the Partnership or to have made a partial withdrawal from its Partner Capital Account, as the
case may be, without further action on the part of said Limited Partner and the provisions of Article 17.6 shall apply.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE 13&#8232;&nbsp;&nbsp;&#8232;TERMINATION
AND DISTRIBUTION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">13.1&nbsp;&nbsp;<I>Termination.</I>&nbsp;&nbsp;The Partnership
shall continue in effect from the date of its formation in perpetuity, unless sooner terminated upon the occurrence of any one
or more of the following events:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(a) The death, adjudication of incompetence,
bankruptcy, dissolution, withdrawal, or removal of a General Partner who is the sole remaining General Partner, unless a majority
in interest of the Limited Partners within 90 days after such event elects to continue the Partnership and appoints a successor
General Partner; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(b) The affirmative vote of a majority in
interest of the Limited Partners; provided, however, that any such termination shall be subject to the conditions set forth in
this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">13.2&nbsp;&nbsp;<I>Assumption of Agreements.</I>&nbsp;&nbsp;No
vote by the Limited Partners to terminate the Partnership pursuant to Section 13.1(b) shall be effective unless, prior to or concurrently
with such vote, there shall have been established procedures for the assumption of the Partnership&rsquo;s obligations arising
under any agreement to which the Partnership is a party and which is still in force immediately prior to such vote regarding termination,
and there shall have been an irrevocable appointment of an agent who shall be empowered to give and receive notices, reports and
payments under such agreements, and hold and exercise such other powers as are necessary to permit all other parties to such agreements
to deal with such agent as if the agent were the sole owner of the Partnership&rsquo;s interest, which procedures are agreed to
in writing by each of the other parties to such agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">13.3&nbsp;&nbsp;<I>Distribution</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">13.3.1&nbsp;&nbsp;Upon termination of the Partnership, the affairs
of the Partnership shall be wound up and all of its debts and liabilities discharged or otherwise provided for in the order of
priority as provided by law. The fair market value of the remaining assets of the Partnership shall then be determined by the General
Partner. Thereupon, the assets of the Partnership shall be distributed to the Partners pro rata in accordance with their Units.
Each Partner shall receive its share of the assets in cash or in kind, and the proportion of such share that is received in cash
may vary from Partner to Partner, all as the General Partner in its sole discretion may decide. If such distributions are insufficient
to return to any Partner the full amount of its Capital Contributions, such Partner shall have no recourse against any other Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">13.3.2&nbsp;&nbsp;The winding up of the affairs of the Partnership
and the distribution of its assets shall be conducted exclusively by the General Partner or its successor, which is hereby authorized
to do all acts authorized by law for these purposes. Without limiting the generality of the foregoing, the General Partner, in
carrying out such winding up and distribution, shall have full power and authority to sell all or any of the Partnership&rsquo;s
assets or to distribute the same in kind to the Partners.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE 14&#8232;&nbsp;&nbsp;&#8232;MEETINGS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">14.1&nbsp;&nbsp;<I>Meeting of Limited Partners.</I>&nbsp;&nbsp;Upon
the written request of 20% or more in interest of the Limited Partners, the General Partner may, but is not required to, call a
meeting of the Limited Partners. Notice of such meeting shall be given within 30 days after, and the meeting shall be held within
60 days after, receipt of such request. The General Partner may also call a meeting not less than 20 and not more than 60 days
prior to the meeting. Any such notice shall state briefly the purpose of the meeting, which shall be held at a reasonable time
and place.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE 15&#8232;&nbsp;&nbsp;&#8232;POWER
OF ATTORNEY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">15.1&nbsp;&nbsp;<I>Appointment.</I>&nbsp;&nbsp;Each Limited
Partner and each Assignee hereby constitutes and appoints each of the General Partner and, if a liquidator shall have been selected,
the liquidator severally (and any successor to either thereof by merger, transfer, assignment, election or otherwise) and each
of their respective authorized officers and attorneys-in-fact with full power of substitution, as its true and lawful agent and
attorney-in-fact with full power and authority in its name, place and stead to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(a) execute, swear to, acknowledge, deliver, file and record
in the appropriate public offices (i) all certificates, documents and other instruments (including, without limitation, this Agreement
and the Certificate of Limited Partnership and all amendments or restatements thereof) that the General Partner or the liquidator
deems necessary or appropriate to form, qualify or continue the existence or qualification of the Partnership as a limited partnership
(or a partnership in which the limited partners have limited liability) in the State of Delaware and in all other jurisdictions
in which the Partnership may conduct business or own property, (ii) all certificates, documents and other instruments that the
General Partner or the liquidator deems necessary or appropriate to reflect, in accordance with its terms, any amendment, change,
modification or restatement of this Agreement, (iii) all certificates, documents and other instruments (including, without limitation,
conveyances and a certificate of cancellation) that the General Partner or the liquidator deems necessary or appropriate to reflect
the dissolution and liquidation of the Partnership pursuant to the terms of this Agreement, (iv) all certificates, documents and
other instruments relating to the admission, withdrawal, removal or substitution of any Partner or the Capital Contribution of
any Partner, (v) all certificates, documents and other instruments relating to the determination of the rights, preferences and
privileges of Units issued, and (vi) all certificates documents and other instruments (including, without limitation, agreements
and a certificate of merger) relating to a merger or consolidation of the Partnership;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">(b) execute, swear to, acknowledge, deliver,
file and record all ballots, consents, approval waivers, certificates and other instruments necessary or appropriate, in the sole
discretion of the General Partner or the liquidator, to make, evidence, give, confirm or ratify any vote, consent, approval, agreement
or other action that is made or given by the Partners hereunder or is consistent with the terms of this Agreement or is necessary
or appropriate, in the sole discretion of the General Partner or the liquidator, to effectuate the terms or intent of this Agreement,
provided, that when required by this Agreement that establishes a percentage of the Limited Partners or of the Limited Partners
of any class or series required to take any action, the General Partner or the liquidator may exercise the power of attorney made
in this Article 15 only after the necessary vote, consent or approval of the Limited Partners or of the Limited Partners of such
class or series;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">15.2&nbsp;&nbsp;<I>Survival.</I>&nbsp;&nbsp;The foregoing power
of attorney is hereby declared to be irrevocable and a power coupled with an interest and it shall survive and not be affected
by the subsequent death, incompetence, disability, incapacity, dissolution, bankruptcy or termination of any Limited Partner or
Assignee and the transfer of all or any portion of such Limited Partner&rsquo;s or Assignee&rsquo;s Partnership interest and shall
extend to such Limited Partners or Assignee&rsquo;s heirs, successors, assigns and personal representatives. Each such Limited
Partner or Assignee hereby agrees to be bound by any representation made by the General Partner or the liquidator acting in good
faith pursuant to such power of attorney; and each such Limited Partner or Assignee hereby waives any and all defenses that may
be available to contest, negate or disaffirm the action of the General Partner or the liquidator taken in good faith under such
power of attorney. Each Limited Partner or Assignee shall execute and deliver to the General Partner or the liquidator, within
15 days after receipt of the General Partner&rsquo;s or the liquidator&rsquo;s request therefor, such further designations, powers
of attorney and other instruments as the General Partner or the liquidator deems necessary to effectuate this Agreement and the
purposes of the Partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE 16&#8232;&nbsp;&nbsp;&#8232;CREATION
OF UNITS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">16.1&nbsp;&nbsp;<I>General.</I>&nbsp;&nbsp;The Partnership will
create and redeem Units from time to time, but only in one or more Creation Baskets or Redemption Baskets (a block of 50,000 Units
shall be referred to as a &ldquo;<I>Basket</I>&rdquo;). The creation and redemption of Baskets will only be made in exchange for
delivery to the Partnership or the distribution by the Partnership of the amount of United States government securities with maturities
of 2 years or less (&ldquo;<I>Treasuries</I>&rdquo;) and any cash represented by the Baskets being created or redeemed, the amount
of which will be based on the combined NAV of the number of Units included in the Baskets being created or redeemed determined
on the day the order to create or redeem Baskets is properly received.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">16.2&nbsp;&nbsp;<I>Creation Procedures.</I>&nbsp;&nbsp;On any
Business Day, a Participant, may place an order with the Partnership&rsquo;s marketing agent to create one or more Baskets. Purchase
orders must be placed by 12:00 PM New York time or the close of regular trading on the NYSE Arca, whichever is earlier; except
in the case of the initial order to purchase one or more Creation Baskets on the first day the Baskets are to be offered and sold,
when such orders shall be placed by 9:00 AM New York time on the day agreed to by the General Partner and the Initial Limited Partner.
The day on which the marketing agent receives a valid purchase order is the purchase order date. By placing a purchase order, a
Participant agrees to (1) deposit Treasuries, cash, or a combination of Treasuries and cash with the Partnership, and (2) if required
by the General Partner in its sole discretion, enter into or arrange for a block trade, an exchange for physical or exchange for
swap, or any other over-the-counter energy transaction (through itself or a designated acceptable broker) with the Partnership
for the purchase of a number and type of futures contracts at the closing settlement price for such contracts on the purchase order
date, as specified in the purchase order form attached to the Authorized Purchaser Agreement. Failure to consummate (1) and (2)
above shall result in the cancellation of the order. The number and type of contracts specified shall be determined by the General
Partner, in its sole discretion, to meet the Partnership&rsquo;s investment objective and shall be purchased as a result of the
Participant&rsquo;s purchase of Units. Prior to the delivery of Baskets for a purchase order, the Participant must also have wired
to the custodian the non-refundable creation transaction fee described in this Article 16.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">16.3&nbsp;&nbsp;<I>Determination of Required Deposits.</I>&nbsp;&nbsp;The
total deposit required to create each Basket (&ldquo;<I>Creation Basket Deposit</I>&rdquo;) is an amount of Treasuries and/or cash
with a value that is in the same proportion to the total assets of the Partnership (net of estimated accrued but unpaid fees, expenses
and other liabilities) on the date the order to purchase is properly received as the number of Units to be created under the purchase
order is in proportion to the total number of Units outstanding on the date the order is received. The General Partner determines,
in its sole discretion or in consultation with the administrator of the Partnership, the requirements for Treasuries and the amount
of cash, including the maximum permitted remaining maturity of a Treasury and cash that may be included in deposits to create Baskets.
The Partnership, or its marketing agent on the Partnership&rsquo;s behalf, will publish such requirements at the beginning of each
Business Day. The amount of cash deposit required is the difference between (i) the aggregate market value of the Treasuries included
in a Creation Basket Deposit as of 4:00 PM New York time on the date the order to purchase is properly received and (ii) the total
required deposit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">16.4&nbsp;&nbsp;<I>Delivery of Required Deposits.</I>&nbsp;&nbsp;A
Participant who places a purchase order is responsible for transferring to the Partnership&rsquo;s account with the custodian the
required amount of Treasuries and cash by the end of the third Business Day following the purchase order date. Upon receipt of
the deposit amount, the administrator will direct DTC to credit the number of Baskets ordered to the Participant&rsquo;s DTC account
on the third Business Day following the purchase order date. The expense and risk of delivery and ownership of Treasuries until
such Treasuries have been received by the custodian on behalf of the Partnership shall be borne solely by the Participant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">16.5&nbsp;&nbsp;<I>Rejection of Purchase Orders.</I>&nbsp;&nbsp;The
General Partner, or its marketing agent on its behalf, shall have the absolute right but no obligation to reject a purchase order
or a Creation Basket Deposit if: (1) it determines that the purchase order or the Creation Basket Deposit is not in proper form;
(2) the General Partner, in its sole discretion, believes that the purchase order or the Creation Basket Deposit would have adverse
tax consequences to the Partnership, Limited Partners or Unitholders; (3) the acceptance or receipt of the Creation Basket Deposit
would, in the opinion of counsel to the General Partner, be unlawful; or (4) circumstances outside the control of the General Partner,
marketing agent or custodian make it, for all practical purposes, not feasible to process creations of Baskets (including if the
General Partner determines that the investment alternatives available to the Partnership at that time will not enable it to meet
its investment objective). None of the General Partner, marketing agent or custodian will be liable for the rejection of any purchase
order or Creation Basket Deposit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">16.6&nbsp;&nbsp;<I>Creation Transaction Fee.</I>&nbsp;&nbsp;To
compensate the Partnership for its expenses in connection with the creation of Baskets, a Participant is required to pay a transaction
fee to the Partnership of $1,000 per order to create Baskets. An order may include multiple Baskets. The transaction fee may be
reduced, increased or otherwise changed by the General Partner. The General Partner shall notify DTC in advance of any change in
the transaction fee and will not implement any increase in the fee for the creation of Baskets until 30 days after the date of
the notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE 17&#8232;&nbsp;&nbsp;&#8232;REDEMPTION
OF UNITS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">17.1&nbsp;&nbsp;<I>General.</I>&nbsp;&nbsp;The procedures by
which a Participant can redeem one or more Baskets mirror the procedures for the creation of Baskets. On any Business Day, a Participant
may place an order with the marketing agent to redeem one or more Baskets. Redemption orders must be placed by 12:00 PM New York
time or the close of regular trading on the NYSE Arca, whichever is earlier. A redemption order so received is&nbsp;effective on the
date it is received in satisfactory form by the marketing agent. The day on which the marketing agent receives a valid redemption
order is the redemption order date. By placing a redemption order, a Participant agrees to (1) deliver the Baskets to be redeemed
through DTC&rsquo;s book-entry system to the Partnership&rsquo;s account with its custodian not later than 3:00 PM New York time
on the third Business Day following the effective date of the redemption order, and (2) if required by the General Partner in
its sole discretion, enter into or arrange for a block trade, an exchange for physical or exchange for swap, or any other over-the-counter
energy transaction (through itself or a designated acceptable broker) with the Partnership for the sale of a number and type of
futures contracts at the closing settlement price for such contracts on the redemption order date, as specified in the redemption
order form attached to the Authorized Purchaser Agreement. Failure to consummate (1) and (2) above shall result in the cancellation
of the order. The number and type of contracts specified shall be determined by the General Partner, in its sole discretion, to
meet the Partnership&rsquo;s investment objective and shall be sold as a result of the Participant&rsquo;s sale of Units. Prior
to the delivery of the redemption distribution for a redemption order, the Participant must also have wired to the Partnership&rsquo;s
account with the custodian the non-refundable redemption transaction fee described in this Article 17.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">17.2&nbsp;&nbsp;<I>Determination of Redemption Distribution.</I>&nbsp;&nbsp;The
redemption distribution from the Partnership consists of a transfer to the redeeming Participant of an amount of Treasuries and/or
cash with a value that is in the same proportion to the total assets of the Partnership (net of estimated accrued but unpaid fees,
expenses and other liabilities) on the date the order to redeem is properly received as the number of Units to be redeemed under
the redemption order is in proportion to the total number of Units outstanding on the date the order to redeem is received. The
General Partner, directly or through its agent, will determine the requirements for Treasuries and/or the amount of cash, including
the maximum permitted remaining maturity of a Treasury, and the proportions of Treasuries and cash, that may be included in distributions
to redeem Baskets. The marketing agent will publish such requirements as of 4:00 PM New York time on the redemption order date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">17.3&nbsp;&nbsp;<I>Delivery of Redemption Distribution.</I>&nbsp;&nbsp;The
redemption distribution due from the Partnership is delivered to the Participant by 3:00 PM New York time on the third Business
Day following the redemption order date if, by 3:00 PM New York time on such third Business Day, the Partnership&rsquo;s DTC account
has been credited with the Baskets to be redeemed. If the Partnership&rsquo;s DTC account has not been credited with all of the
Baskets to be redeemed by such time, the redemption distribution is delivered to the extent of whole Baskets received. Any remainder
of the redemption distribution is delivered on the next Business Day to the extent of remaining whole Baskets received if the Partnership
(1) receives the fee applicable to the extension of the redemption distribution date which the General Partner may, from time to
time, determine and (2) the remaining Baskets to be redeemed are credited to the Partnership&rsquo;s DTC account by 3:00 PM New
York time on such next Business Day. Any further remaining amount of the redemption order shall be cancelled and the Participant
will indemnify the Partnership for any losses, if any, due to such cancellation, including but not limited to the difference in
the price of investments sold as a result of the redemption order and investments made to reflect that such order has been cancelled.
Pursuant to instruction from the General Partner, the custodian is also authorized to deliver the redemption distribution notwithstanding
that the Baskets to be redeemed are not credited to the Partnership&rsquo;s DTC account by 3:00 PM New York time on the third Business
Day following the redemption order date if the Participant has collateralized its obligation to deliver the Baskets through DTC&rsquo;s
book entry system on such terms as the General Partner may from time to time determine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">17.4&nbsp;&nbsp;<I>Suspension or Rejection of Redemption orders.</I>&nbsp;&nbsp;The
General Partner may, in its discretion, suspend the right of redemption, or postpone the redemption settlement date, (1) for any
period during which any of the ICE Futures Exchange, the NYSE Arca or the New York Stock Exchange is closed other than customary
weekend or holiday closings, or trading on the NYSE Arca or the ICE Futures Exchange is suspended or restricted, (2) for any period
during which an emergency exists as a result of which delivery, disposal or evaluation of Treasuries is not reasonably practicable,
or (3) for such other period as the General Partner determines to be necessary for the protection of the Limited Partners or the
Unitholders. None of the General Partner, the marketing agent or the custodian will be liable to any person or in any way for any
loss or damages that may result from any such suspension or postponement. The General Partner will reject a redemption order if
the order is not in proper form or if the fulfillment of the order, in the opinion of its counsel, might be unlawful. The General
Partner may also reject a redemption order if the number of units being redeemed would reduce the remaining outstanding units to
100,000 units (i.e., two baskets) or less.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">17.5&nbsp;&nbsp;<I>Redemption Transaction Fee.</I>&nbsp;&nbsp;To
compensate the Partnership for its expenses in connection with the redemption of Baskets, a Participant is required to pay a transaction
fee to the Partnership of $1,000 per order to redeem Baskets. An order may include multiple Baskets. The transaction fee may be
reduced, increased or otherwise changed by the General Partner. The General Partner shall notify DTC in advance of any change in
the transaction fee and will not implement any increase in the fee for the redemption of Baskets until 30 days after the date of
the notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">17.6&nbsp;&nbsp;<I>Required Redemption.</I>&nbsp;&nbsp;The General
Partner may, at any time, in its sole discretion, require any Limited Partner to withdraw entirely from the Partnership or to withdraw
a portion of its Partner Capital Account, by giving not less than 15 days&rsquo; advance written notice to the Limited Partner
thus designated. In addition, the General Partner without notice may require at any time, or retroactively, withdrawal of all or
any portion of the Capital Account of any Limited Partner: (i) that the General Partner determines is a benefit plan investor (within
the meaning of the Department of Labor Regulation (s) 2510.3-101(f)(2)) in order for the assets of the Partnership not to be treated
as plan assets under ERISA; (ii) that made a misrepresentation to the General Partner in connection with its purchase of Units;
or (iii) whose ownership of Units would result in the violation of any law or regulations applicable to the Partnership or a Partner.
The Limited Partner thus designated shall withdraw from the Partnership or withdraw that portion of its Partner Capital Account
specified in such notice, as the case may be, as of the Close of Business on such date as determined by the General Partner. The
Limited Partner thus designated shall be deemed to have withdrawn from the Partnership or to have made a partial withdrawal from
its Partner Capital Account, as the case may be, without further action on the part of said Limited Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE 18&#8232;&nbsp;&nbsp;&#8232;MISCELLANEOUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">18.1&nbsp;&nbsp;<I>Notices.</I>&nbsp;&nbsp;Any notice, offer,
consent or other communication required or permitted to be given or made hereunder shall be in writing and shall be deemed to have
been sufficiently given or made when delivered personally to the party (or an officer of the party) to whom the same is directed,
or (except in the event of a mail strike) 5 Business Days after being mailed by first-class mail, postage prepaid, if to the Partnership
or to a General Partner, or if to a Limited Partner, to the address set forth on Exhibit B hereof. Any Partner may change its address
for the purpose of this Article by giving notice of such change to the Partnership, such change to become effective on the tenth
(10th) Business Day after such notice is given.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">18.2&nbsp;&nbsp;<I>Waiver of Partition.</I>&nbsp;&nbsp;Each
Partner hereby irrevocably waives during the term of the Partnership any right that it may have to maintain any action for partition
with respect to any Partnership property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">18.3&nbsp;&nbsp;<I>Governing Law, Successors, Severability.</I>&nbsp;&nbsp;This
Agreement shall be governed by the laws of the State of Delaware, as such laws are applied by Delaware courts to agreements entered
into and to be performed in Delaware by and between residents of Delaware and shall, subject to the restrictions on transferability
set forth herein, bind and inure to the benefit of the heirs, executors, personal representatives successors and assigns of the
parties hereto. If any provision of this Agreement shall be held to be invalid, the remainder of this Agreement shall not be affected
thereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">18.4&nbsp;&nbsp;<I>Consent to Jurisdiction.</I>&nbsp;&nbsp;The
General Partner and the Limited Partners hereby (i) irrevocably submit to the non-exclusive jurisdiction of any Delaware state
court or federal court sitting in Wilmington, Delaware in any action arising out of or relating to this Agreement, and (ii) consent
to the service of process by mail. Nothing herein shall affect the right of any party to serve legal process in any manner permitted
by law or affect its right to bring any action in any other court. Each party agrees that, in the event that any dispute arising
from or relating to this Agreement becomes subject to any judicial proceeding, such party, to the fullest extent permitted by applicable
law, waives any right it may otherwise have to (a) seek punitive or consequential damages, or (b) request a trial by jury.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">18.5&nbsp;&nbsp;<I>Entire Agreement.</I>&nbsp;&nbsp;This Agreement
constitutes the entire agreement among the parties; it supersedes any prior agreement or understanding among them, oral or written,
all of which are hereby canceled. This Agreement may not be modified or amended other than pursuant to Articles 3 and 15.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">18.6&nbsp;&nbsp;<I>Headings.</I>&nbsp;&nbsp;The headings in
this Agreement are inserted for convenience of reference only and shall not affect interpretation of this Agreement. Wherever from
the context it appears appropriate, each term stated in either the singular or the plural shall include the singular and the plural
and pronouns stated in either the masculine or the neuter gender shall include the masculine, the feminine and the neuter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">18.7&nbsp;&nbsp;<I>No Waiver.</I>&nbsp;&nbsp;The failure of
any Partner to seek redress for violation, or to insist on strict performance, of any covenant or condition of this Agreement shall
not prevent a subsequent act which would have constituted a violation from having the effect of an original violation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">18.8&nbsp;&nbsp;<I>Legends.</I>&nbsp;&nbsp;If certificates for
any interest or interests are issued evidencing a Limited Partner&rsquo;s interest in the Partnerships, each such certificate shall
bear such legends as may be required by applicable federal and state laws, or as may be deemed necessary or appropriate by the
General Partner to reflect restrictions upon transfer contemplated herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">18.9&nbsp;&nbsp;<I>Counterparts.</I>&nbsp;&nbsp;This Agreement
may be executed in several counterparts, each of which shall be deemed an original but all of which shall constitute one and the
same instrument.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">18.10&nbsp;&nbsp;<I>Relationship between the Agreement and the
Act.</I>&nbsp;&nbsp;Regardless of whether any provisions of this Agreement specifically refer to particular Default Rules (as defined
below), (a) if any provision of this Agreement conflicts with a Default Rule, the provision of this Agreement controls and the
Default Rule is modified or negated accordingly, and (b) if it is necessary to construe a Default Rule as modified or negated in
order to effectuate any provision of this Agreement, the Default Rule is modified or negated accordingly. For purposes of this
Article 18.10, &ldquo;<I>Default Rule</I>&rdquo; shall mean a rule stated in the Act that applies except to the extent it is negated
or modified through the provisions of the Partnership&rsquo;s certificate of limited partnership or this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">IN WITNESS WHEREOF, the parties hereto
have executed this Third Amended and Restated Agreement of Limited Partnership on the date first written above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt"><B>General Partner</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">United States Commodity Funds LLC</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30%">&nbsp;</TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-size: 10pt">By:&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="width: 38%; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 30%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Name:&nbsp;&nbsp;Howard Mah</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Title:&nbsp;&nbsp;Management Director</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 139.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0"><B>EXHIBIT A</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM OF GLOBAL CERTIFICATE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Evidencing Units Representing Limited
Partner Interests</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>in United States Brent Oil Fund, LP</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">UNLESS THIS CERTIFICATE IS PRESENTED BY
AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (&ldquo;DTC&rdquo;), TO THE FUND OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &amp; CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &amp; CO. OR TO SUCH OTHER
ENTITY AS IS REQUIRED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &amp; CO., HAS AN INTEREST HEREIN.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This is to certify that Cede &amp; Co.
is the owner and registered holder of this Certificate evidencing the ownership of issued and outstanding Limited Partner Units
<I>(&ldquo;Units&rdquo;)</I>, each of which represents a fractional undivided unit of a beneficial interest in United States Brent
Oil Fund, LP (the <I>&ldquo;Fund&rdquo;</I>), a Delaware limited partnership.&nbsp;&nbsp;Capitalized terms used not defined herein
have the meaning given to such terms in the Third Amended and Restated Agreement of Limited Partnership, as amended, supplemented
or restated to the date hereof (the &ldquo;<I>Limited Partnership Agreement</I>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At any given time, this Certificate shall
represent the limited units of beneficial interest in the Fund purchased by a particular authorized Participant on the date of
this Certificate. The Limited Partnership Agreement of the Fund provides for the deposit of cash with the Fund from time to time
and the issuance by the Fund of additional Creation Baskets representing the undivided units of beneficial interest in the assets
of the Fund. At the request of the registered holder, this Certificate may be exchanged for one or more Certificates issued to
the registered holder in such denominations as the registered holder may request; provided, however, that in the aggregate, the
Certificates issued to the registered holder hereof shall represent all Units outstanding at any given time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each authorized Participant hereby grants
and conveys all of its rights, title and interest in and to the Fund to the extent of the undivided interest represented hereby
to the registered holder of this Certificate subject to and in pursuance of the Limited Partnership Agreement, all the terms, conditions
and covenants of which are incorporated herein as if fully set forth at length.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The registered holder of this Certificate
is entitled at any time upon tender of this Certificate to the Fund, endorsed in blank or accompanied by all necessary instruments
of assignment and transfer in proper form, at its principal office in the State of California and, upon payment of any tax or other
governmental charges, to receive at the time and in the manner provided in the Limited Partnership Agreement, such holder&rsquo;s
ratable portion of the assets of the Fund for each Redemption Basket tendered and evidenced by this Certificate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The holder of this Certificate, by virtue
of the purchase and acceptance hereof, assents to and shall be bound by the terms of the Limited Partnership Agreement, copies
of which are on file and available for inspection at reasonable times during business hours at the principal business office of
the General Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Fund may deem and treat the person
in whose name this Certificate is registered upon the books of the Fund as the owner hereof for all purposes and the Fund shall
not be affected by any notice to the contrary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Limited Partnership Agreement and this
Certificate are executed and delivered by United States Commodity Funds LLC as General Partner of the Fund, in the exercise of
the powers and authority conferred and vested in it by the Limited Partnership Agreement. The representations, undertakings and
agreements made on the part of the Fund in the Limited Partnership Agreement or this Certificate are made and intended not as personal
representations, undertakings and agreements by the General Partner, other than acting in its capacity as such, but are made and
intended for the purpose of binding only the Fund. Nothing in the Limited Partnership Agreement or this Certificate shall be construed
as imposing any liability on the General Partner, individually or personally, to fulfill any representation, undertaking or agreement
other than as provided in the Limited Partnership Agreement or this Certificate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">THE HOLDER OF THIS SECURITY ACKNOWLEDGES
FOR THE BENEFIT OF UNITED STATES BRENT OIL FUND, LP THAT THIS SECURITY MAY NOT BE SOLD, OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED
IF SUCH TRANSFER WOULD VIOLATE THE THEN APPLICABLE FEDERAL OR STATE SECURITIES LAWS OR RULES AND REGULATIONS OF THE SECURITIES
AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION OR ANY OTHER GOVERNMENTAL AUTHORITY WITH JURISDICTION OVER SUCH TRANSFER,
TERMINATE THE EXISTENCE OR QUALIFICATION OF UNITED STATES BRENT OIL FUND, LP UNDER THE LAWS OF THE STATE OF DELAWARE, OR CAUSE
UNITED STATES BRENT OIL FUND, LP TO BE TREATED AS AN ASSOCIATION TAXABLE AS A CORPORATION OR OTHERWISE TO BE TAXED AS AN ENTITY
FOR FEDERAL INCOME TAX PURPOSES (TO THE EXTENT NOT ALREADY SO TREATED OR TAXED). UNITED STATES COMMODITY FUNDS LLC, THE GENERAL
PARTNER OF UNITED STATES BRENT OIL FUND, LP, MAY IMPOSE ADDITIONAL RESTRICTIONS ON THE TRANSFER OF THIS SECURITY IF IT RECEIVES
AN OPINION OF COUNSEL THAT SUCH RESTRICTIONS ARE NECESSARY TO AVOID A SIGNIFICANT RISK OF UNITED STATES BRENT OIL FUND, LP BECOMING
TAXABLE AS A CORPORATION OR OTHERWISE BECOMING TAXABLE AS AN ENTITY FOR FEDERAL INCOME TAX PURPOSES. THE RESTRICTIONS SET FORTH
ABOVE SHALL NOT PRECLUDE THE SETTLEMENT OF ANY TRANSACTIONS INVOLVING THIS SECURITY ENTERED INTO THROUGH THE FACILITIES OF ANY
NATIONAL SECURITIES EXCHANGE ON WHICH THIS SECURITY IS LISTED OR ADMITTED TO TRADING.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This Certificate shall not become valid
or binding for any purpose until properly executed by the General Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">IN WITNESS WHEREOF, the General Partner
of the Fund has caused this Certificate to be executed in its name by the manual or facsimile signature of one of its Authorized
Persons.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" NOWRAP><FONT STYLE="font-size: 10pt">United States Commodity Funds LLC,</FONT></TD>
    <TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;<FONT STYLE="font-size: 10pt"></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" NOWRAP><FONT STYLE="font-size: 10pt">as General Partner</FONT></TD>
    <TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="width: -4mm"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD NOWRAP STYLE="width: 44%; padding-bottom: 1pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 20%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 3%"><FONT STYLE="font-size: 10pt"></FONT></TD>
    <TD NOWRAP STYLE="width: 37%; padding-bottom: 1pt"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD>
    <TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" NOWRAP><FONT STYLE="font-size: 10pt">Date:</FONT></TD>
    <TD NOWRAP>&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP><FONT STYLE="font-size: 10pt"></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT B</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADDRESSES FOR NOTICE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>United States Commodity Funds LLC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1999 Harrison Street, Suite 1530</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Oakland, California 94612</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">with a copy to</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Brown Brothers Harriman &amp; Co.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">40 Water Street</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Boston, MA&nbsp;&nbsp;02109</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Attention: Manager, Fund Administration Department</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT C</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>APPLICATION FOR TRANSFER OF UNITS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Transferees of Units must execute and deliver
this application to <B>United States Brent Oil Fund, LP, c/o United States Commodity Funds LLC, 1999 Harrison Street, Suite 1530,
Oakland, California 94612, </B>to be admitted as limited partners to United States Brent Oil Fund, LP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The undersigned (<I>&ldquo;Assignee&rdquo;</I>)
hereby applies for transfer to the name of the Assignee of the Units evidenced hereby and hereby certifies to United States Brent
Oil Fund, LP (the <I>&ldquo;Partnership&rdquo;</I>) that the Assignee (including to the best of Assignee&rsquo;s knowledge, any
person for whom the Assignee will hold the Units) is an Eligible Holder.*</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Assignee (a) requests admission as
a Limited Partner and agrees to comply with and be bound by, and hereby executes, the Third Amended and Restated Agreement of Limited
Partnership of the Partnership, as amended, supplemented or restated to the date hereof (the <I>&ldquo;Limited Partnership Agreement&rdquo;</I>),
(b) represents and warrants that the Assignee has all right, power and authority and, if an individual, the capacity necessary
to enter into the Limited Partnership Agreement, (c) appoints the General Partner of the Partnership and, if a Liquidator shall
be appointed, the Liquidator of the Partnership as the Assignee&rsquo;s attorney-in-fact to execute, swear to, acknowledge and
file any document, including, without limitation, the Limited Partnership Agreement and any amendment thereto and the Certificate
of Limited Partnership of the Partnership and any amendment thereto, necessary or appropriate for the Assignee&rsquo;s admission
as a Substituted Limited Partner and as a party to the Limited Partnership Agreement, (d) gives the powers of attorney provided
for in the Limited Partnership Agreement, and (e) makes the waivers and gives the consents and approvals contained in the Limited
Partnership Agreement. Capitalized terms used but not defined herein have the meanings given to such terms in the Limited Partnership
Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%"><FONT STYLE="font-size: 10pt">Date: </FONT></TD>
    <TD STYLE="width: 20%; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 76%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30%; text-align: justify; border-bottom: Black 1pt solid"></TD>
    <TD STYLE="width: 10%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 40%; text-align: justify; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"></FONT></TD>
    <TD STYLE="width: 20%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Social Security or other identifying</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify; padding-left: 0.5in"><FONT STYLE="font-size: 10pt">Signature of Assignee</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Number of Assignee</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30%; text-align: justify; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 40%; text-align: justify; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 20%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Purchase Price including commissions, if any</FONT></TD>
    <TD NOWRAP STYLE="text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="text-align: justify; padding-left: 0.5in"><FONT STYLE="font-size: 10pt">Name and Address of Assignee</FONT></TD>
    <TD NOWRAP>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Type of Entity (check one):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30%"><FONT STYLE="font: 10pt Wingdings">&uml;</FONT><FONT STYLE="font-size: 10pt">&nbsp;Individual</FONT></TD>
    <TD STYLE="width: 20%"><FONT STYLE="font: 10pt Wingdings">&uml;</FONT><FONT STYLE="font-size: 10pt"> Partnership</FONT></TD>
    <TD STYLE="width: 50%"></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font: 10pt Wingdings">&uml;</FONT><FONT STYLE="font-size: 10pt">&nbsp;Trust</FONT></TD>
    <TD><FONT STYLE="font: 10pt Wingdings">&uml;</FONT><FONT STYLE="font-size: 10pt"> Other (specify)</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If not an Individual (check one):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">the entity is subject to United States
federal income taxation on the income generated by the Partnership;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">the entity is not subject to United States
federal income taxation, but it is a pass-through entity and all of its beneficial owners are subject to United States federal
income taxation on the income generated by the Partnership;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">the entity is not subject to United States
federal income taxation and it is (a) not a pass-through entity or (b) a pass-through entity, but not all of its beneficial owners
are subject to United States federal income taxation on the income generated by the Partnership. <B>Important Note</B> &mdash;
by checking this box, the Assignee is contradicting its certification that it is an Eligible Holder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">* The Term <I>&ldquo;Eligible Holder&rdquo;</I>
means (a) an individual or entity subject to United States federal income taxation on the income generated by the Partnership;
or (b) an entity not subject to United States federal income taxation on the income generated by the Partnership, so long as all
of the entity&rsquo;s owners are subject to United States federal income taxation on the income generated by the Partnership. Individuals
or entities are subject to taxation, in the context of defining an Eligible Holder, to the extent they are taxable on the items
of income and gain allocated by the Partnership. Schedule I hereto contains a list of various types of investors that are categorized
and identified as either &ldquo;Eligible Holders&rdquo; or &ldquo;Non-Eligible Holders.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nationality (check one):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT>&nbsp; U.S.
Citizen, Resident or Domestic Entity**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&uml;</FONT>
Non-resident Alien**</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">&uml;</FONT>&nbsp; Foreign
Corporation**</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">** As those terms are defined in the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the U.S. Citizen, Resident or Domestic
Entity box is checked, the following certification must be completed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under Section 1445(e) of the Internal Revenue
Code of 1986, as amended (the <I>&ldquo;Code&rdquo;</I>), the Partnership must withhold tax with respect to certain transfers of
property if a holder of an interest in the Partnership is a foreign person. To inform the Partnership that no withholding is required
with respect to the undersigned interestholder&rsquo;s interest in it, the undersigned hereby certifies the following (or, if applicable,
certifies the following on behalf of the interestholder).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Complete Either A or B:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A. Individual Interestholder</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">1. I am not a non-resident alien for purposes of U.S. income
taxation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">2. My U.S. taxpayer identification number
(Social Security Number) is ____________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">3. My home address is __________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">B. Partnership, Corporation or Other Interestholder</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">1. The interestholder is not a foreign
corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined in the Code and Treasury regulations).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">2. The interestholder&rsquo;s U.S. employer
identification number is __________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">3. The interestholder&rsquo;s office address
and place of incorporation (if applicable) is __________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The interestholder agrees to notify the
Partnership within sixty (60) days of the date the interestholder becomes a foreign person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The interestholder understands that this
certificate may be disclosed to the Internal Revenue Service by the Partnership and that any false statement contained herein could
be punishable by fine, imprisonment or both.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under penalties of perjury, I declare that
I have examined this certification and, to the best of my knowledge and belief, it is true, correct and complete and, if applicable,
I further declare that I have authority to sign this document on behalf of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Name of Interestholder _________________________________________________________________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Signature and Date _______________________________________________________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Title (if applicable) ______________________________________________________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Note: If the Assignee is a broker, dealer, bank, trust company,
clearing corporation, other nominee holder or an agent of any of the foregoing, and is holding for the account of any other person,
this application should be completed by an officer thereof or, in the case of a broker or dealer, by a registered representative
who is a member of a registered national securities exchange or a member of FINRA, or, in the case of any other nominee holder,
a person performing a similar function. If the Assignee is a broker, dealer, bank, trust company, clearing corporation, other nominee
owner or an agent of any of the foregoing, the above certification as to any person for whom the Assignee will hold the Units shall
be made to the best of the Assignee&rsquo;s knowledge.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>STATEMENT OF ADDITIONAL INFORMATION </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES BRENT OIL FUND, LP </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>This statement of additional information
is the second part of the prospectus for United States Brent Oil Fund, LP (&ldquo;USBO&rdquo;). The first part of the prospectus
is the disclosure document. The disclosure document and the statement of additional information are bound together, and both parts
contain important information. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt"><B>Before you decide whether to invest,
you should read this entire prospectus carefully and consider the risk factors beginning on page 8. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">This statement of additional information
and accompanying disclosure document are both dated May&nbsp;1, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES BRENT OIL FUND, LP </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Statement of Additional Information </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TABLE OF CONTENTS </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 92%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 8%; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>Page</B></FONT>
        &nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt">The Commodity Interest Markets</FONT></TD>
    <TD NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 10pt">SAI-3</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 12pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Potential Advantages of Investment</FONT></TD>
    <TD NOWRAP STYLE="text-align: center"><FONT STYLE="font-size: 10pt">SAI-8</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>The Commodity Interest Markets </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>General </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The CEA governs the regulation of commodity
interest transactions, markets and intermediaries. The CEA provides for varying degrees of regulation of commodity interest transactions
depending upon: (1)&nbsp;the type of instrument being traded (<I>e.g.,</I> contracts for future delivery, options, swaps or spot
contracts), (2)&nbsp;the type of commodity underlying the instrument (distinctions are made between instruments based on agricultural
commodities, energy and metals commodities and financial commodities), (3)&nbsp;the nature of the parties to the transaction (retail,
eligible contract participant, or eligible commercial entity), (4)&nbsp;whether the transaction is entered into on a principal-to-principal
or intermediated basis, (5)&nbsp;the type of market on which the transaction occurs, and (6)&nbsp;whether the transaction is subject
to clearing through a clearing organization.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The offer and sale of units of USBO, as
well as units of each of the Related Public Funds, is registered under the 1933 Act. USBO and the Related Public Funds are subject
to the requirements of the Securities Act, the Exchange Act and the rules and regulations adopted thereunder as administered by
the SEC. Firm&rsquo;s participation in the distribution of units are regulated as described above, as well as by the self-regulatory
association, FINRA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Futures Contracts </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">A futures contract is a standardized contract
traded on, or subject to the rules of, an exchange that calls for the future delivery of a specified quantity and type of a commodity
at a specified time and place. Futures contracts are traded on a wide variety of commodities, including agricultural products,
bonds, stock indices, interest rates, currencies, energy and metals. The size and terms of futures contracts on a particular commodity
are identical and are not subject to any negotiation, other than with respect to price and the number of contracts traded between
the buyer and seller.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The contractual obligations of a buyer
or seller may generally be satisfied by taking or making physical delivery of the underlying commodity or by making an offsetting
sale or purchase of an identical futures contract on the same or linked exchange before the designated date of delivery. The difference
between the price at which the futures contract is purchased or sold and the price paid for the offsetting sale or purchase, after
allowance for brokerage commissions, constitutes the profit or loss to the trader. Some futures contracts, such as stock index
contracts, settle in cash (reflecting the difference between the contract purchase/sale price and the contract settlement price)
rather than by delivery of the underlying commodity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In market terminology, a trader who purchases
a futures contract is long in the market and a trader who sells a futures contract is short in the market. Before a trader closes
out his long or short position by an offsetting sale or purchase, his outstanding contracts are known as open trades or open positions.
The aggregate amount of open positions held by traders in a particular contract is referred to as the open interest in such contract.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Forward Contracts</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">A forward contract is a contractual obligation
to purchase or sell a specified quantity of a commodity at or before a specified date in the future at a specified price and, therefore,
is economically similar to a futures contract. Unlike futures contracts, however, forward contracts are typically traded in the
over-the-counter markets and are not standardized contracts. Forward contracts for a given commodity are generally available for
various amounts and maturities and are subject to individual negotiation between the parties involved. Moreover, generally there
is no direct means of offsetting or closing out a forward contract by taking an offsetting position as one would a futures contract
on a U.S. exchange. If a trader desires to close out a forward contract position, he generally will establish an opposite position
in the contract but will settle and recognize the profit or loss on both positions simultaneously on the delivery date. Thus, unlike
in the futures contract market where a trader who has offset positions will recognize profit or loss immediately, in the forward
market a trader with a position that has been offset at a profit will generally not receive such profit until the delivery date,
and likewise a trader with a position that has been offset at a loss will generally not have to pay money until the delivery date.
In recent years, however, the terms of forward contracts have become more standardized, and in some instances such contracts now
provide a right of offset or cash settlement as an alternative to making or taking delivery of the underlying commodity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In general, the CFTC does not regulate
the interbank and forward foreign currency markets with respect to transactions in contracts between certain sophisticated counterparties
such as USBO or between certain regulated institutions and retail investors. Although U.S. banks are regulated in various ways
by the Federal Reserve Board, the Comptroller of the Currency and other U.S. federal and state banking officials, banking authorities
do not regulate the forward markets to the same extent that the swap markets will be regulated by the CFTC once the Dodd-Frank
Act is fully implemented. At a minimum, over-the-counter currency forwards, options and swaps will be subject to heightened recordkeeping,
reporting and business conduct standards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">On November 16, 2012, the Secretary of
the Treasury issued a final determination that exempts both foreign exchange swaps and foreign exchange forwards from the definition
of &ldquo;swap&rdquo; and, by extension, additional regulatory requirements (such as clearing and margin). The final determination
does not extend to other foreign exchange derivatives, such as foreign exchange options, currency swaps, and non-deliverable forwards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">While the U.S. government does not currently
impose any restrictions on the movements of currencies, it could choose to do so. The imposition or relaxation of exchange controls
in various jurisdictions could significantly affect the market for that and other jurisdictions&rsquo; currencies. Trading in the
interbank market also exposes USBO to a risk of default since failure of a bank with which USBO had entered into a forward contract
would likely result in a default and thus possibly substantial losses to USBO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Options on Futures Contracts </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Options on futures contracts are standardized
contracts traded on an exchange. An option on a futures contract gives the buyer of the option the right, but not the obligation,
to take a position at a specified price (the striking, strike, or exercise price) in the underlying futures contract or underlying
interest. The buyer of a call option acquires the right, but not the obligation, to purchase or take a long position in the underlying
interest, and the buyer of a put option acquires the right, but not the obligation, to sell or take a short position in the underlying
interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The seller, or writer, of an option is
obligated to take a position in the underlying interest at a specified price opposite to the option buyer if the option is exercised.
Thus, the seller of a call option must stand ready to take a short position in the underlying interest at the strike price if the
buyer should exercise the option. The seller of a put option, on the other hand, must stand ready to take a long position in the
underlying interest at the strike price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">A call option is said to be in-the-money
if the strike price is below current market levels and out-of-the-money if the strike price is above current market levels. Conversely,
a put option is said to be in-the-money if the strike price is above the current market levels and out-of-the-money if the strike
price is below current market levels.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Options have limited life spans, usually
tied to the delivery or settlement date of the underlying interest. Some options, however, expire significantly in advance of such
date. The purchase price of an option is referred to as its premium, which consists of its intrinsic value (which is related to
the underlying market value) plus its time value. As an option nears its expiration date, the time value shrinks and the market
and intrinsic values move into parity. An option that is out-of-the-money and not offset by the time it expires becomes worthless.
On certain exchanges, in-the-money options are automatically exercised on their expiration date, but on others unexercised options
simply become worthless after their expiration date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Regardless of how much the market swings,
the most an option buyer can lose is the option premium. The option buyer deposits his premium with his broker, and the money goes
to the option seller. Option sellers, on the other hand, face risks similar to participants in the futures markets. For example,
since the seller of a call option is assigned a short futures position if the option is exercised, his risk is the same as someone
who initially sold a futures contract. Because no one can predict exactly how the market will move, the option seller posts margin
to demonstrate his ability to meet any potential contractual obligations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Options on Forward Contracts or Commodities </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Options on forward contracts or commodities
operate in a manner similar to options on futures contracts. An option on a forward contract or commodity gives the buyer of the
option the right, but not the obligation, to take a position at a specified price in the underlying forward contract or commodity.
However, similar to forward contracts, options on forward contracts or on commodities are individually negotiated contracts between
counterparties and are typically traded in the over-the-counter market. Therefore, options on forward contracts and physical commodities
possess many of the same characteristics of forward contracts with respect to offsetting positions and credit risk that are described
above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Swap Contracts </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Swap transactions generally involve contracts
between two parties to exchange a stream of payments computed by reference to a notional amount and the price of the asset that
is the subject of the swap. Swap contracts are principally traded off-exchange, although certain swap contracts are also traded
in electronic trading facilities and cleared through clearing organizations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Swaps are usually entered into on a net
basis, that is, the two payment streams are netted out in a cash settlement on the payment date or dates specified in the agreement,
with the parties receiving or paying, as the case may be, only the net amount of the two payments. Swaps do not generally involve
the delivery of underlying assets or principal. Accordingly, the risk of loss with respect to swaps is generally limited to the
net amount of payments that the party is contractually obligated to make. In some swap transactions one or both parties may require
collateral deposits from the counterparty to support that counterparty&rsquo;s obligation under the swap agreement. If the counterparty
to such a swap defaults, the risk of loss consists of the net amount of payments that the party is contractually entitled to receive
less any collateral deposits it is holding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Some swap transactions are cleared through
central counterparties. These transactions, known as cleared swaps, involve two counterparties first agreeing to the terms of a
swap transaction, then submitting the transaction to a clearing house that acts as the central counterparty. Once accepted by the
clearing house, the original swap transaction is novated and the central counterparty becomes the counterparty to a trade with
each of the original parties based upon the trade terms determined in the original transaction. In this manner each individual
swap counterparty reduces its risk of loss due to counterparty nonperformance because the clearing house acts as the counterparty
to each transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Regulation </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Futures exchanges in the United States
are subject to varying degrees of regulation under the CEA depending on whether such exchange is a designated contract market,
exempt board of trade or electronic trading facility. Clearing organizations are also subject to the CEA and the rules and regulations
adopted thereunder and administered by the CFTC. The CFTC is the governmental agency charged with responsibility for regulation
of futures exchanges and commodity interest trading conducted on those exchanges. The CFTC&rsquo;s function is to implement the
CEA&rsquo;s objectives of preventing price manipulation and excessive speculation and promoting orderly and efficient commodity
interest markets. In addition, the various exchanges and clearing organizations themselves exercise regulatory and supervisory
authority over their member firms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The CFTC also regulates the activities
of &ldquo;commodity trading advisors&rdquo; and &ldquo;commodity pool operators&rdquo; and the CFTC has adopted regulations with
respect to certain of such persons&rsquo; activities. Pursuant to its authority, the CFTC requires a CPO, such as the General Partner,
to keep accurate, current and orderly records with respect to each pool it operates. The CFTC may suspend, modify or terminate
the registration of any registrant for failure to comply with CFTC rules or regulations. Suspension, restriction or termination
of the General Partner&rsquo;s registration as a CPO would prevent it, until such time (if any) as such registration were to be
reinstated, from managing, and might result in the termination of, USBO or the Related Public Funds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The CEA also gives the states certain powers
to enforce its provisions and the regulations of the CFTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Under certain circumstances, the CEA grants
unitholders the right to institute a reparations proceeding before the CFTC against the General Partner (as a registered commodity
pool operator), as well as those of their respective employees who are required to be registered under the CEA. Unitholders may
also be able to maintain a private right of action for certain violations of the CEA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Pursuant to authority in the CEA, the NFA
has been formed and registered with the CFTC as a registered futures association. The NFA is the only self-regulatory association
for commodities professionals other than the exchanges. As such, the NFA promulgates rules governing the conduct of commodity professionals
and disciplines those professionals that do not comply with such standards. The CFTC has delegated to the NFA responsibility for
the registration of commodity pool operation. The General Partner is a member of the NFA. As a member of the NFA, the General Partner
is subject to NFA standards relating to fair trade practices, financial condition, and consumer protection. The CFTC is prohibited
by statute from regulating trading on foreign commodity exchanges and markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The CEA requires all futures commission
merchants (&ldquo;FCMs&rdquo;), such as USBO&rsquo;s clearing brokers, to meet and maintain specified fitness and financial requirements,
to segregate customer funds from proprietary funds and account separately for all customers&rsquo; funds and positions, and to
maintain specified books and records open to inspection by the staff of the CFTC. The CFTC has similar authority over introducing
brokers, or persons who solicit or accept orders for commodity interest trades but who do not accept margin deposits for the execution
of trades. The CEA authorizes the CFTC to regulate trading by futures commission merchants and by their officers and directors,
permits the CFTC to require action by exchanges in the event of market emergencies, and establishes an administrative procedure
under which customers may institute complaints for damages arising from alleged violations of the CEA. The CEA also gives the states
powers to enforce its provisions and the regulations of the CFTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The regulations of the CFTC and the NFA
prohibit any representation by a person registered with the CFTC or by any member of the NFA, that registration with the CFTC,
or membership in the NFA, in any respect indicates that the CFTC or the NFA, as the case may be, has approved or endorsed that
person or that person&rsquo;s trading program or objectives. The registrations and memberships of the parties described in this
summary must not be considered as constituting any such approval or endorsement. Likewise, no futures exchange has given or will
give any similar approval or endorsement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The regulation of commodity interest trading
in the United States and other countries is an evolving area of the law. The various statements made in this summary are subject
to modification by legislative action and changes in the rules and regulations of the CFTC, the NFA, the futures exchanges, clearing
organizations and other regulatory bodies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">On July&nbsp;21, 2010, a broad financial
regulatory reform bill, the Dodd-Frank Act, was signed into law. All of the Dodd-Frank Act&rsquo;s provisions became effective
on July&nbsp;16, 2011, but the actual implementation of some of the provisions is subject to continuing uncertainty because implementing
rules and regulations have not been completely finalized and have been challenged in court. Pending final resolution of all applicable
regulatory requirements, some specific examples of how the new Dodd-Frank Act provisions and rules adopted thereunder could impact
USBO are discussed below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Futures Contracts and Position Limits </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Provisions in the Dodd-Frank Act include
the requirement that position limits be established on a wide range of commodity interests including energy-based and other commodity
futures contracts, certain cleared commodity swaps and certain over-the-counter commodity contracts; new registration, recordkeeping,
capital and margin requirements for &ldquo;swap dealers&rdquo; and &ldquo;major swap participants&rdquo; as determined by the new
law and applicable regulations; and the forced use of clearinghouse mechanisms for most swap transactions that are currently entered
into in the over-the-counter market. The new law and the rules thereunder may negatively impact USBO&rsquo;s ability to meet its
investment objective either through limits or requirements imposed on it or upon its counterparties. Further, increased regulation
of, and the imposition of additional costs on, swap transactions under the new legislation and implementing regulations could cause
a reduction in the swap market and the overall derivatives markets, which could restrict liquidity and adversely affect USBO. In
particular, new position limits imposed on USBO or its counterparties may impact USBO&rsquo;s ability to invest in a manner that
most efficiently meets its investment objective, and new requirements, including capital and mandatory clearing, may increase the
cost of USBO&rsquo;s investments and doing business, which could adversely impact the ability of USBO to achieve its investment
objective.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">In October 2011, the CFTC finalized rules
that establish position limits with respect to 28 physical delivery commodity futures and options contracts, as well as to forward
contracts that are economically equivalent to such contracts (the &ldquo;Position Limit Rules&rdquo;). The Position Limit Rules
were scheduled to become effective on October 12, 2012. However, on September 28, 2012, the United States District Court for the
District of Columbia vacated these regulations on the basis of ambiguities in the provisions of the Commodity Exchange Act (as
modified by the Dodd-Frank Act) upon which the regulations were based. In its September 28th decision, the court remanded the Position
Limit Rules to the CFTC with instructions to use its expertise and experience to resolve the ambiguities in the statute. On November
15, 2012, the CFTC indicated that it would move forward with an appeal of the District Court&rsquo;s decision to vacate the Position
Limit Rules. At this time, it is not possible to predict how the CFTC&rsquo;s appeal could affect USBO, but it may be substantial
and adverse. Furthermore, until such time as the appeal is resolved or, if applicable revisions to the Position Limit Rules are
proposed and adopted, the regulatory architecture in effect prior to the enactment of the Position Limit Rules will govern transactions
in commodities and related derivatives. As a result, USBO may be limited with respect to the size of its investments in any commodities
subject to these limits. Finally, subject to certain narrow exceptions, the vacated Position Limit Rules would have required the
aggregation, for purposes of the position limits, of all positions in the 28 Referenced Contracts held by a single entity and its
affiliates, regardless of whether such position existed on U.S. futures exchanges, non-U.S. futures exchanges, in cleared swaps
or in over-the-counter swaps. The CFTC is presently considering new aggregation rules, under a rulemaking proposal that is distinct
from the Position Limit Rules. At this time, it is unclear how any modified aggregation rules may affect USBO, but it may be substantial
and adverse. By way of example, the aggregation rules in combination with any potential revised Position Limit Rules may negatively
impact the ability of USBO to meet its investment objectives through limits that may inhibit the General Partner&rsquo;s ability
to sell additional Creation Baskets of USBO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Based on its current understanding of the
final position limit regulations, the General Partner does not anticipate significant negative impact on the ability of USBO to
achieve its investment objective.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&ldquo;Swap&rdquo; Transactions</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Dodd-Frank Act imposes new regulatory
requirements on certain &ldquo;swap&rdquo; transactions that USBO is authorized to engage in that may ultimately impact the ability
of USBO to meet its investment objective. On August 13, 2012, the CFTC and the SEC published joint final rules defining the terms
&ldquo;swap&rdquo; and &ldquo;security- based swap.&rdquo; The term &ldquo;swap&rdquo; is broadly defined to include various types
of over-the-counter derivatives, including swaps and options. The effective date of these final rules was October 12, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The Dodd-Frank Act requires that certain
transactions ultimately falling within the definition of &ldquo;swap&rdquo; be executed on organized exchanges or &ldquo;swap execution
facilities&rdquo; and cleared through regulated clearing organizations (which are referred to in the Dodd-Frank Act as &ldquo;derivative
clearing organizations&rdquo; (&ldquo;DCOs&rdquo;)), if the CFTC mandates the central clearing of a particular contract. However,
the CFTC has not issued any mandatory clearing determinations and therefore, it is currently unknown which swaps will be subject
to such trading and clearing requirements. If a swap is required to be cleared, the initial margin will be set by the clearing
organization, subject to certain regulatory requirements and guidelines. Initial and variation margin requirements for swap dealers
and major swap participants who enter into uncleared swaps and capital requirements for swap dealers and major swap participants
who enter into both cleared and uncleared trades will be set by the CFTC, the SEC or the applicable &ldquo;Prudential Regulator.&rdquo;
On May 23, 2012, the CFTC published final regulations, which became effective as of July 23, 2012, to determine which entities
will be regulated as &ldquo;swap dealers&rdquo; and &ldquo;major swap participants&rdquo; and thus have to comply with these capital
and margin requirements (as well as a multitude of other requirements under the Dodd-Frank Act). Most of the requirements imposed
became effective on October 12, 2012, when additional final rules defining the terms &ldquo;swap,&rdquo; &ldquo;security-based
swap,&rdquo; and &ldquo;mixed swap&rdquo; became effective. However, on October 11, 2012 and October 12, 2012, the CFTC issued
several no-action letters and interpretive guidance which delayed much of the implementation of the requirements from October 12,
2012 until December 31, 2012. Increased regulation of, and the imposition of additional costs on, swap transactions could have
an adverse effect on USBO by, for example, reducing the size of and therefore liquidity in the derivatives market, increasing transaction
costs and decreasing the ability to customize derivative transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">On February 7, 2012, the CFTC published
a rule requiring each FCM and DCO to segregate cleared swaps and related collateral posted by a customer of the FCM from the assets
of the FCM or DCO, although such property can be commingled with the property of other cleared swaps customers of the FCM or DCO.
This rule addresses losses incurred by a DCO in a so-called &ldquo;double default&rdquo; scenario in which a customer of an FCM
defaults in its obligations to the FCM and the FCM, in turn, defaults in its obligations to the DCO. Under this scenario, the DCO
can only access the collateral attributable to other customers of the DCO whose cleared swap positions are in a loss position following
the primary customer&rsquo;s default. This rule became effective on November 8, 2012. Some market participants have expressed concern
that the requirements of this segregation rule may result in higher initial margins or higher fees. USBO does not anticipate any
impact to their operations in order to meet the requirements of the new rule.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Additionally, the CFTC published rules
on February 17, 2012 and April 3, 2012 that require &ldquo;swap dealers&rdquo; and &ldquo;major swap participants&rdquo; to: 1)
adhere to business conduct standards, 2) implement policies and procedures to ensure compliance with the CEA and 3) maintain records
of such compliance. These new requirements may impact the documentation requirements for both cleared and non-cleared swaps and
cause swap dealers and major swap participants to face increased compliance costs that, in turn, may be passed along to counterparties
(such as USBO) in the form of higher fees and expenses that related to trading swaps.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">On February 24, 2012, the CFTC amended
certain disclosure obligations to require that the operator of a commodity pool that invests in swaps include standardized swap
risk disclosures in the pool&rsquo;s disclosure documents by December 31, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">On December 5, 2012, the CFTC&rsquo;s Division
of Market Oversight issued a letter providing swap dealers with time-limited no-action relief from swap data reporting obligations
with respect to equity swaps, foreign exchange swaps and other commodity swaps. For these asset classes, the letter provides swap
dealers with reporting relief (i) with respect to real-time price reporting and regular swap reporting (under Part 43 and Part
45 of the CFTC&rsquo;s regulations, respectively), until February 28, 2013, and (ii) historical swap reporting requirements (under
Part 46 of the CFTC&rsquo;s regulations) until March 30, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">On December 21, 2012, the CFTC&rsquo;s
Division of Market Oversight issued two letters providing certain swap dealers with time-limited no-action relief from some swap
data reporting obligations. One letter provides relief from reporting requirements for branches of swap dealers located in emerging
markets who encounter technical difficulties in complying with the reporting rules. The letter also provides that swap dealers
may delay reporting compliance for certain complex and exotic swaps until April 30, 2012.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Under a second letter, all swap dealers
have until April 10, 2013 to report certain information about their counterparties, including: status as a major swap participant,
a financial entity, a U.S. person or a commercial end-user.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">On December 18, 2012, the CFTC deferred
the compliance date for many of the Dodd-Frank Act&rsquo;s external business conduct standards from December 31, 2012 to May 1,
2013, and for some requirements to July 1, 2013, providing swap dealers an additional four to six months from the original compliance
date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The effect of the future regulatory change
on USBO is impossible to predict, but it could be substantial and adverse.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Commodity Margin </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Original or initial margin is the minimum
amount of funds that must be deposited by a commodity interest trader with the trader&rsquo;s broker to initiate and maintain an
open position in futures contracts. Maintenance margin is the amount (generally less than the original margin) to which a trader&rsquo;s
account may decline before he must deliver additional margin. A margin deposit is like a cash performance bond. It helps assure
the trader&rsquo;s performance of the futures contracts that he or she purchases or sells. Futures contracts are customarily bought
and sold on initial margin that represents a very small percentage (ranging upward from less than 5%) of the aggregate purchase
or sales price of the contract. Because of such low margin requirements, price fluctuations occurring in the futures markets may
create profits and losses that, in relation to the amount invested, are greater than are customary in other forms of investment
or speculation. As discussed below, adverse price changes in the futures contract may result in margin requirements that greatly
exceed the initial margin. In addition, the amount of margin required in connection with a particular futures contract is set from
time to time by the exchange on which the contract is traded and may be modified from time to time by the exchange during the term
of the contract.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Brokerage firms, such as USBO&rsquo;s clearing
brokers, carrying accounts for traders in commodity interest contracts may not accept lower, and generally require higher, amounts
of margin as a matter of policy to further protect themselves. The clearing brokers require USBO to make margin deposits equal
to exchange minimum levels for all commodity interest contracts. This requirement may be altered from time to time in the clearing
brokers&rsquo; discretion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Regulators have not yet finalized the Dodd-Frank
rules regarding initial margin levels for over-the-counter derivatives. It is possible that such levels may be higher than those
for futures contracts. Also, initial margin requirements for non-cleared swaps will be subject to higher margin requirements than
cleared swaps. And, under pending rule proposals, USBO may be required to post, but not be entitled to receive, initial and variation
margin in respect of non-cleared swaps. Until such time as the regulators finalize these margin rules, trading in the over-the-counter
markets where no clearing facility is provided generally will not require margin per se. Rather, it will involve the extension
of credit between counterparties that is secured by transfers of credit support and/or independent amounts. Credit support is transferred
between counterparties in respect of the open over-the-counter derivatives entered into between them, while independent amounts
are fixed amounts posted by one or both counterparties at the execution of a particular over-the-counter transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">When a trader purchases an option, there
is no margin requirement; however, the option premium must be paid in full. When a trader sells an option, on the other hand, he
or she is required to deposit margin in an amount determined by the margin requirements established for the underlying interest
and, in addition, an amount substantially equal to the current premium for the option. The margin requirements imposed on the selling
of options, although adjusted to reflect the probability that out-of-the-money options will not be exercised, can in fact be higher
than those imposed in dealing in the futures markets directly. Complicated margin requirements apply to spreads and conversions,
which are complex trading strategies in which a trader acquires a mixture of options positions and positions in the underlying
interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Margin requirements are computed each day
by a trader&rsquo;s clearing broker. When the market value of a particular open commodity interest position changes to a point
where the margin on deposit does not satisfy maintenance margin requirements, a margin call is made by the broker. If the margin
call is not met within a reasonable time, the broker may close out the trader&rsquo;s position. With respect to USBO&rsquo;s trading,
USBO (and not its investors personally) is subject to margin calls.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Finally, many major U.S. exchanges have
passed certain cross margining arrangements involving procedures pursuant to which the futures and options positions held in an
account would, in the case of some accounts, be aggregated and margin requirements would be assessed on a portfolio basis, measuring
the total risk of the combined positions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Potential Advantages of Investment </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The Advantages of Non-Correlation </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Given that historically, the price of crude
oil and of Futures Contracts and Other Crude Oil-Related Investments has had very little correlation to the stock and bond markets,
the General Partner believes that the performance of USBO should also exhibit a substantial degree of non-correlation with the
performance of traditional equity and debt portfolio components, in part because of the ease of selling commodity interests short.
This feature of many commodity interest contracts &mdash; being able to be long or short a commodity interest position with similar
ease &mdash; means that profit and loss from commodity interest trading is not dependent upon economic prosperity or stability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">However, non-correlation will not provide
any diversification advantages unless the non-correlated assets are outperforming other portfolio assets, and it is entirely possible
that USBO may not outperform other sectors of an investor&rsquo;s portfolio, or may produce losses. Additionally, although adding
USBO&rsquo;s units to an investor&rsquo;s portfolio may provide diversification, USBO is not a hedging mechanism vis-&agrave;-vis
traditional debt and equity portfolio components and you should not assume that USBO units will appreciate during periods of inflation
or stock and bond market declines.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Non-correlated performance should not be
confused with negatively correlated performance. Negative correlation occurs when the performance of two asset classes are in opposite
direction to each other. Non-correlation means only that USBO&rsquo;s performance will likely have little relation to the performance
of equity and debt instruments, reflecting the General Partner&rsquo;s belief that certain factors that affect equity and debt
prices may affect USBO differently and that certain factors that affect equity and debt prices may not affect USBO at all. USBO&rsquo;s
net asset value per unit may decline or increase more or less than equity and debt instruments during both rising and falling cash
markets. The General Partner does not expect that USBO&rsquo;s performance will be negatively correlated to general debt and equity
markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PART II</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>INFORMATION NOT REQUIRED IN THE PROSPECTUS
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 55.05pt; text-indent: -55.1pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 55.05pt; text-indent: -55.1pt"><B>Item&nbsp; 13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
Expenses of Issuance and Distribution </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 55.05pt; text-indent: -55.1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Set forth below is an estimate (except
as indicated) of the amount of fees and expenses (other than underwriting commissions and discounts) payable by the registrant
in connection with the issuance and distribution of the units pursuant to the prospectus contained in this registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; border-bottom: Black 1pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Amount</B></P> </TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 67%; text-align: left; text-indent: -12pt; padding-left: 12pt">Amount SEC registration fee (actual)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">139,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">NYSE Arca Listing Fee (actual)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">FINRA filing fees (actual)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">75,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Blue Sky expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">N/A</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Auditor&rsquo;s fees and expenses (estimate)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Legal fees and expenses (estimate)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">268,670</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Printing expenses (estimate)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">39,072</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; text-indent: -12pt; padding-left: 12pt">Miscellaneous expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">N/A</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="padding-left: 0.1in">&nbsp;</TD><TD STYLE="font-size: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 1pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 1pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -12pt; padding-left: 0.5in; padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double">$</TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double">530,242</TD><TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 55.05pt; text-indent: -55.1pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 55.05pt; text-indent: -55.1pt"><B>Item&nbsp; 14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indemnification
of Directors and Officers </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Neither the General Partner nor any employee
or other agent of United States Brent Oil Fund, LP (&ldquo;USBO&rdquo;) nor any officer, director, stockholder, partner, employee
or agent of the General Partner (a &ldquo;Protected Person&rdquo;) shall be liable to any partner or USBO for any mistake of judgment
or for any action or inaction taken, nor for any losses due to any mistake of judgment or to any action or inaction or to the negligence,
dishonesty or bad faith of any officer, employee, broker or other agent of USBO or any officer, director, stockholder, partner,
employee or agent of such General Partner, provided that such officer, director, stockholder, employee, broker or agent of the
partner or officer, employee, partner or agent of such General Partner was selected, engaged or retained by such General Partner
with reasonable care, except with respect to any matter as to which such General Partner shall have been finally adjudicated in
any action, suit or other proceeding not to have acted in good faith in the reasonable belief that such Protected Person&rsquo;s
actions was in the best interests of USBO and except that no Protected person shall be relieved of any liability to which such
Protected Person would otherwise be subject by reason of willful misfeasance, gross negligence or reckless disregard of the duties
involved in the conduct of the Protected Person&rsquo;s office. A General Partner and its officers, directors, employees or partners
may consult with counsel and accountants (except for USBO&rsquo;s independent auditors) in respect of USBO affairs and be fully
protected and justified in any action or inaction which is taken in accordance with the advice or opinion of such counsel or accountants
(except for the Partnership&rsquo;s independent auditors), provided that they shall have been selected with reasonable care. Notwithstanding
any of the foregoing to the contrary, this provision hereof shall not be construed so as to relieve (or attempt to relieve) a General
Partner (or any employee or other agent thereof or any partner, employee or agent of such General Partner) of any liability to
the extent (but only to the extent) that such liability may not be waived, modified or limited under applicable law, but shall
be construed so as to effectuate these provisions hereof to the fullest extent permitted by law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">USBO shall, to the fullest extent permitted
by law, but only out of USBO assets, indemnify and hold harmless the General Partner and each officer, director, employee and agent
thereof (including persons who serve at USBO&rsquo;s request as directors, officers or trustees of another organization in which
USBO has an interest as a unitholder, creditor or otherwise) and their respective legal representatives and successors (hereinafter
referred to as a &ldquo;Covered Person&rdquo; against all liabilities and expenses, including but not limited to amounts paid in
satisfaction of judgments, in compromise or as fines and penalties, and counsel fees reasonably incurred by any Covered Person
in connection with the defense or disposition of any action, suit or other proceedings, whether civil or criminal, before any court
or administrative or legislative body, in which such Covered Person may be or may have been involved as a party or otherwise or
with which such person may be or may have been threatened, while in office or thereafter, by reason of an alleged act or omission
as a General Partner or officer thereof or by reason of its being or having been such a General Partner or officer, except with
respect to any matter as to which such Covered Person shall have been finally adjudicated in any such action, suit or other proceeding
not to have acted in good faith in the reasonable believe that such Covered Person&rsquo;s action was in the best interest of the
Fund, and except that no Covered Person shall be indemnified against any liability to USBO or Limited Partners to which such Covered
Person would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties
involved in the conduct of such Covered Person&rsquo;s office. Expenses, including counsel fees so incurred by any such Covered
Person, may be paid from time to time by USBO in advance of the final disposition of any such action, suit or proceeding on the
condition that the amounts so paid shall be repaid to USBO if it is ultimately determined that the indemnification of such expenses
is not authorized hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">As to any matter disposed of by a compromise
payment by any such Covered Person, pursuant to a consent decree or otherwise, no such indemnification either for said payment
or for any other expenses shall be provided unless such compromise shall be approved as in the best interests of USBO, after notice
that it involved such indemnification by any disinterested person or persons to whom the questions may be referred by the General
Partner, provided that there has been obtained an opinion in writing of independent legal counsel to the effect that such Covered
Person appears to have acted in good faith in the reasonable belief that his or her action was in the best interests of USBO and
that such indemnification would not protect such persons against any liability to USBO or its Limited Partners to which such person
would otherwise by subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved
in the conduct of office. Approval by any disinterested person or persons shall not prevent the recovery from persons as indemnification
if such Covered Person is subsequently adjudicated by a court of competent jurisdiction not to have acted in good faith in the
reasonable belief that such Covered Person&rsquo;s action was in the best interests of USBO or to have been liable to USBO or its
Limited Partners by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in
the conduct of such Covered Person&rsquo;s office.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The right of indemnification hereby provided
shall not be exclusive of or affect any other rights to which any such Covered Person may be entitled. An &ldquo;interested Covered
Person&rdquo; is one against whom the action, suit or other proceeding on the same or similar grounds is then or has been pending
and a &ldquo;disinterested person&rdquo; is a person against whom none of such actions, suits or other proceedings or another action,
suit or other proceeding on the same or similar grounds is then or has been pending. Nothing contained herein shall affect any
rights to indemnification to which personnel of a General Partner, other than directors and officers, and other persons may be
entitled by contract or otherwise under law, nor the power of USBO to purchase and maintain liability insurance on behalf of any
such person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 55.05pt; text-indent: -55.1pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 55.05pt; text-indent: -55.1pt"><B>Item&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recent
Sales of Unregistered Securities </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">On September&nbsp;2, 2009, the General
Partner made a $20 capital contribution to USBO. Additionally, Wainwright Holdings, Inc. (&ldquo;Wainwright&rdquo;) contributed
$980 to USBO for its limited partnership interest. The General Partner is 100% owned by Wainwright which is controlled by the President
of the General Partner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 55.05pt; text-indent: -55.1pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 55.05pt; text-indent: -55.1pt"><B>Item&nbsp;16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits
and Financial Statement Schedules </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">(a) Exhibits</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 8%; padding-bottom: 1pt; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Exhibit&nbsp;No.</B></P></TD>
    <TD STYLE="width: 2%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 90%; padding-left: 0.1in; padding-bottom: 1pt; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Description</B>&nbsp;</P></TD></TR>
<TR>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-left: 0.1in; text-align: center"><FONT STYLE="font-size: 10pt">3.1&nbsp;<SUP>(1)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt"><FONT STYLE="font-size: 10pt">Certificate of Limited Partnership of the Registrant.</FONT></TD></TR>
<TR>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-left: 0.1in; text-align: center"><FONT STYLE="font-size: 10pt">3.2</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt"><FONT STYLE="font-size: 10pt">Second Amended and Restated Agreement of Limited Partnership (included as Appendix B to the prospectus).</FONT></TD></TR>
<TR>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-left: 0.1in; text-align: center"><FONT STYLE="font-size: 10pt">3.4&nbsp;<SUP>(2)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt"><FONT STYLE="font-size: 10pt">Fifth Amended and Restated Limited Liability Company Agreement of the General Partner.</FONT></TD></TR>
<TR>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-left: 0.1in; text-align: center"><FONT STYLE="font-size: 10pt">5.1&nbsp;<SUP>(6)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt"><FONT STYLE="font-size: 10pt">Opinion of Reed Smith LLP relating to the legality of the Units.</FONT></TD></TR>
<TR>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-left: 0.1in; text-align: center"><FONT STYLE="font-size: 10pt">8.1&nbsp;<SUP>(6)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt"><FONT STYLE="font-size: 10pt">Opinion of Reed Smith LLP with respect to federal income tax consequences.</FONT></TD></TR>
<TR>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-left: 0.1in; text-align: center"><FONT STYLE="font-size: 10pt">10.1&nbsp;<SUP>(3)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt"><FONT STYLE="font-size: 10pt">Form of Initial Authorized Purchaser Agreement.</FONT></TD></TR>
<TR>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-left: 0.1in; text-align: center"><FONT STYLE="font-size: 10pt">10.2&nbsp;<SUP>(4)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt"><FONT STYLE="font-size: 10pt">Marketing Agent Agreement.</FONT></TD></TR>
<TR>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-left: 0.1in; text-align: center"><FONT STYLE="font-size: 10pt">10.3&nbsp;<SUP>(3)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt"><FONT STYLE="font-size: 10pt">Custodian Agreement.</FONT></TD></TR>
<TR>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-left: 0.1in; text-align: center"><FONT STYLE="font-size: 10pt">10.4&nbsp;<SUP>(3)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt"><FONT STYLE="font-size: 10pt">Administrative Agency Agreement.</FONT></TD></TR>
<TR>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-left: 0.1in; text-align: center"><FONT STYLE="font-size: 10pt">14.1&nbsp;<SUP>(5)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt"><FONT STYLE="font-size: 10pt">Code of Business Conduct and Ethics.</FONT></TD></TR>
<TR>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-left: 0.1in; text-align: center"><FONT STYLE="font-size: 10pt">23.1<SUP>(7)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt"><FONT STYLE="font-size: 10pt">Consent of Reed Smith LLP</FONT></TD></TR>
<TR>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-left: 0.1in; text-align: center"><FONT STYLE="font-size: 10pt">23.2(a)&nbsp;<SUP>(7)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt"><FONT STYLE="font-size: 10pt">Consent of Spicer Jeffries LLP.</FONT></TD></TR>
<TR>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-left: 0.1in; text-align: center"><FONT STYLE="font-size: 10pt">23.2(b)&nbsp;<SUP>(7)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt"><FONT STYLE="font-size: 10pt">Consent of Spicer Jeffries LLP.</FONT></TD></TR>
<TR>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD NOWRAP STYLE="padding-left: 0.1in; text-align: center"><FONT STYLE="font-size: 10pt">99.1&nbsp;<SUP>(4)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 4.95pt"><FONT STYLE="font-size: 10pt">Customer Agreement for Futures Contracts.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -48.95pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 48.95pt">(1)</TD><TD>Incorporated by reference to Registrant&rsquo;s Registration Statement on Form S-1 (File No. 333-162015) filed on September
18, 2009.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 48.95pt">(2)</TD><TD>Incorporated by reference to Registration Statement on Form S-3 (File No. 333-176873) filed by United States 12 Month Oil Fund,
LP on September 16, 2011.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -48.95pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: -48.95pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 48.95pt">(3)</TD><TD>Incorporated by reference to Registrant&rsquo;s Registration Statement on Form S-1/A (File No. 333-162015) filed on April 2,
2010.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 48.95pt">(4)</TD><TD>Incorporated by reference to Registrant&rsquo;s Registration Statement on Form S-1/A (File No. 333-162015) filed on April 16,
2010.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 48.95pt">(5)</TD><TD>Incorporated by reference to Registrant&rsquo;s Annual Report on Form 10-K, filed on March 28, 2012.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 48.95pt">(6)</TD><TD>Incorporated by reference to Post-Effective Amendment No. 2 to the Registration Statement on Form S-1 (File No. 333-162015)
filed on April 2, 2012.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 48.95pt">(7)</TD><TD>To be filed by amendment.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">(b) Financial Statement Schedules</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The financial statement schedules are either
not applicable or the required information is included in the financial statements and footnotes related thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 55.05pt; text-indent: -55.1pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 55.05pt; text-indent: -55.1pt"><B>Item&nbsp;17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undertakings
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">(a) The undersigned registrant hereby undertakes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: 24.5pt">(1) To file, during any period
in which offers or sales are being made, a post-effective amendment to this registration statement:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: 24.5pt">(i) To include any prospectus
required by section 10(a)(3) of the Securities Act of 1933;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: 24.5pt">(ii) To reflect in the prospectus
any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of
securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum
offering range may be reflected in the form of prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b)
if, in the aggregate, the changes in volume and price represent no more than 20 percent change in the maximum aggregate offering
price set forth in the &ldquo;Calculation of Registration Fee&rdquo; table in the effective registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: 24.5pt">(iii) To include any material
information with respect to the plan of distribution not previously disclosed in the registration statement or any material change
to such information in the registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: 24.5pt">(2) That, for the purpose of
determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: 24.5pt">(3) To remove from registration
by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: 24.5pt">(4) That, for the purpose of
determining liability under the Securities Act of 1933 to any purchaser:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: 24.5pt">(i) If the registrant is subject
to Rule 430C (&sect;230.430C of this chapter), each prospectus filed pursuant to Rule 424(b) as part of a registration statement
relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on
Rule 430A (&sect;230.430A of this chapter), shall be deemed to be part of and included in the registration statement as of the
date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus
that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration
statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior
to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of
the registration statement or made in any such document immediately prior to such date of first use.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: 24.5pt">(5) That, for the purpose of
determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities:
The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration
statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or
sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser
and will be considered to offer or sell such securities to such purchaser:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: 24.5pt">(i) Any preliminary prospectus
or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424 (&sect;230.424 of
this chapter);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: 24.5pt">(ii) Any free writing prospectus
relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: 24.5pt">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: 24.5pt">(iii) The portion of any other
free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities
provided by or on behalf of the undersigned registrant; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: 24.5pt">(iv) Any other communication
that is an offer in the offering made by the undersigned registrant to the purchaser.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48.95pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">(b) Insofar as indemnification for liabilities
arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant
to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim
for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">(c) The undersigned registrant hereby undertakes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: 24.5pt">(1) To send to each limited
partner at least on an annual basis a detailed statement of any transactions with the General Partner or its affiliates, and of
fees, commissions, compensation and other benefits paid, or accrued to the General Partner or its affiliates for the fiscal year
completed, showing the amount paid or accrued to each recipient and the services performed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24.45pt; text-indent: 24.5pt">(2) o provide to the limited
partners the financial statements required by Form 10-K for the first full fiscal year of operations of the partnership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Pursuant to the requirements of the Securities
Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing
on Form S-1 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized,
in the City of Oakland, State of California, on March 22, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 46%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt"><B>UNITED STATES BRENT OIL FUND, L.P.</B></FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-left: 12pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt">By: United States Commodity Funds LLC as General Partner</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-align: left; text-indent: -12pt"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1pt solid"><FONT STYLE="font-size: 10pt">/s/Nicholas D. Gerber</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Nicholas D. Gerber</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Chief Executive Officer of</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">United States Commodity Funds LLC</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>POWER OF ATTORNEY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">The undersigned directors and officers
of the General Partner of United States Brent Oil Fund, L.P. hereby constitute and appoint Nicholas D. Gerber and Howard Mah and
each of them with full power to act without the other and with full power of substitution and resubstitution, our true and lawful
attorneys-in-fact with full power to execute in our name and behalf in the capacities indicated below this registration statement
on Form S-1 and any and all amendments thereto, including pre-effective and post-effective amendments to this registration statement
and to sign any and all additional registration statements relating to the same offering of securities as this registration statement
that are filed pursuant to Rule 462(b) of the Securities Act of 1933, and to file the same, with all exhibits thereto and other
documents in connection therewith, with the Securities and Exchange Commission and thereby ratify and confirm that all such attorneys-in-fact,
or any of them, or their substitutes shall lawfully do or cause to be done by virtue hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">Pursuant to the requirements of the Securities
Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.
The document may be executed by signatories hereto on any number of counterparts, all of which shall constitute one and the same
instrument.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; width: 37%"><FONT STYLE="font-size: 10pt"><B>Signature</B></FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 42%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Title</B></FONT></TD>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 15%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Date</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid"><FONT STYLE="font-size: 10pt">/s/Nicholas D. Gerber</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Nicholas D. Gerber</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Management Director</font><BR>
<FONT STYLE="font-size: 10pt">Chief Executive Officer and President of United</FONT><BR>
<FONT STYLE="font-size: 10pt">States Commodity Funds LLC</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">March 22, 2013</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid"><FONT STYLE="font-size: 10pt">/s/Howard Mah</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Howard Mah</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Management Director</FONT><BR>
<FONT STYLE="font-size: 10pt">Chief Financial Officer, Treasurer and Secretary</FONT><BR>
<FONT STYLE="font-size: 10pt">of United States Commodity Funds LLC</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">March 22, 2013</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid"><FONT STYLE="font-size: 10pt">/s/Andrew Ngim</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Andrew Ngim</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Management Director of United States</FONT><BR>
<FONT STYLE="font-size: 10pt">Commodity Funds LLC</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">March 22, 2013</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid"><FONT STYLE="font-size: 10pt">/s/Peter M. Robinson</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Peter M. Robinson</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Independent Director of United States</FONT><BR>
<FONT STYLE="font-size: 10pt">Commodity Funds LLC</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">March 22, 2013</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid"><FONT STYLE="font-size: 10pt">/s/Malcolm R. Fobes II</FONT>I</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Malcolm R. Fobes III</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Independent Director of United States</FONT><BR>
<FONT STYLE="font-size: 10pt">Commodity Funds LLC</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">March 22, 2013</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid"><FONT STYLE="font-size: 10pt">/s/Gordon L. Ellis</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Gordon L. Ellis</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Independent Director of United States<BR>
Commodity Funds LLC</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">March 22, 2013</FONT></TD></TR>
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{"company-data": {"conformed-name": "United States Brent Oil Fund, LP", "cik": "0001472494", "assigned-sic": "6221", "irs-number": "270925904", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-187501", "film-number": "13714207"}, "business-address": {"street1": "1320 HARBOR BAY PARKWAY", "street2": "SUITE 145", "city": "ALAMEDA", "state": "CA", "zip": "94502", "phone": "(510) 522-9600"}, "mail-address": {"street1": "1320 HARBOR BAY PARKWAY", "street2": "SUITE 145", "city": "ALAMEDA", "state": "CA", "zip": "94502"}}
As filed with the Securities and Exchange
Commission on March 25, 2013
Registration No. 333-
UNITED STATES SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
United States Brent Oil Fund, LP
(Exact Name of Registrant as Specified
in Its Charter)
Delaware
6770
27-0925904
(State or Other
    Jurisdiction of
Incorporation or Organization)
(Primary Standard
    Industrial
Classification Code Number)
(I.R.S. Employer
Identification Number)
United States Commodity Funds LLC
1999 Harrison Street, Suite 1530
Oakland, California 94612
510.522.9600
Nicholas D. Gerber
1999 Harrison Street, Suite 1530
Oakland, California 94612
510.522.9600
(Address, Including
    Zip Code, and Telephone Number, Including
Area Code, of Registrant's Principal Executive Offices)
(Name, Address,
    Including Zip Code, and Telephone Number,
Including Area Code, of Agent for Service)
Copies to:
W. Thomas Conner, Esq.
Reed Smith LLP
1301 K. Street, N.W.
Washington, DC 20005-3317
202.414.9208
Approximate date of commencement of
proposed sale to the public:
As soon as practicable after this registration statement becomes effective.
If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under
the Securitie
s
Act of 1933, check the following box.
x
If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act of 1933,
check the following box and list the Securities Act registration statement number of the earlier effective registration statement
for the same offering.
¨
If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act of 1933, check the following box
and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
¨
If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act of 1933, check the following box
and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
¨
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions
of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2
of the Exchange Act. (Check one):
Large accelerated filer
¨
Accelerated filer
¨
Non-accelerated filer
x
Smaller reporting company
¨
CALCULATION
OF REGISTRATION FEE
Title of Each Class of Securities to Be Registered
Amount to Be
Registered
Proposed Maximum
Offering Price
Per Unit
Proposed Maximum
Aggregate
Offering Price
Amount of
Registration Fee
Units of United States Brent Oil Fund, L.P.
*
*
*
*
* Pursuant to Rule 416(a)(6) under the
Securities Act of 1933, the Registrant is carrying forward unsold securities previously registered in connection with File No.
333-162015. The Registrant previously registered 50,000,000 units in connection with File No. 333-162015, for which it paid $139,500
in registration fees. The amount of unsold units remaining that is being applied to this registration statement is 45,450,000.
The registrant hereby amends this Registration
Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment
which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Securities and Commission,
acting pursuant to said Section 8(a), may determine.
File No. 333-
PROSPECTUS
United
States Brent Oil Fund
®
, LP
45,450,000 Units
United States Brent Oil Fund, LP, a Delaware
limited partnership, is a commodity pool that issues units that may be purchased and sold on the NYSE Arca, Inc. ("NYSE Arca").
United States Brent Oil Fund, LP is referred to as USBO throughout this document. The investment objective of USBO is for the daily
changes in percentage terms of its units' net asset value to reflect the daily changes in percentage terms of the spot price
of Brent crude oil as measured by the daily changes in the price of the futures contract on Brent crude oil as traded on the ICE
Futures Exchange that is the near month contract to expire, except when the near month contract is within two weeks of expiration,
in which case the futures contract will be the next month contract to expire, less USBO's expenses.
The units may be purchased from USBO only
in one or more blocks of 50,000 units as described in "Creation and Redemption of Units." A block of 50,000 units is
called a Basket. USBO issues and redeems Baskets called "creation baskets" or "redemption baskets", as
the case may be, from certain authorized purchasers as described in "Plan of Distribution." The price of a creation
baskets or a redemption basket is equal to the net asset value of 50,000 units on the day that the order to create the creation
basket or redeem the redemption basket is accepted by the marketing agent.
Authorized purchasers that purchase creation
baskets may offer and sell units from these baskets to the public at prices that are expected to reflect, among other factors,
the trading price of units on the NYSE Arca, the net asset value of USBO and the supply and demand for units at the time of sale.
The difference between the price paid by authorized purchasers as underwriters and the price paid to such authorized purchasers
by investors will be deemed underwriting compensation. Authorized purchasers will not receive from USBO or any of its affiliates,
any fee or other compensation in connection with the sale of units. USBO will continuously offer creation baskets consisting of
50,000 units to authorized purchasers through ALPS Distributors, Inc., which is the marketing agent. A list of USBO's current
authorized purchasers is available from the marketing agent. Authorized purchasers will pay a transaction fee of $350 through May
1, 2014 for each order to create one or more baskets; on May 2, 2014 and after, the transaction fee will be $1,000. The units are
listed on the NYSE Arca under the symbol "BNO."
USBO is not a mutual fund registered
under the Investment Company Act of 1940 and is not subject to regulation under such Act.
Some of the risks of investing in USBO
include:
•
Investing in crude oil interests subjects USBO to the risks of the crude oil industry which could result in large fluctuations
in the price of USBO's units.
•
If certain correlations do not exist, then investors may not be able to use USBO as a cost-effective way to invest indirectly
in crude oil or as a hedge against the risk of loss in crude oil-related transactions.
•
USBO does not expect to make cash distributions.
•
USBO and its general partner may have conflicts of interest, which may permit them to favor their own interests to your detriment.
This is a best efforts offering; the marketing
agent is not required to sell any specific number or dollar amount of units, but will use its best efforts to sell units. An authorized
purchaser is under no obligation to purchase units. This is intended to be a continuous offering and is not expected to terminate
until all of the registered units have been sold or three years from the date of the prospectus, whichever is earlier, although
the offering may be temporarily suspended if and when no suitable investments for USBO are available or practicable. In no event
may the aggregate compensation paid to the Marketing Agent and any affiliate of the General Partner for distribution related services
in connection with this offering exceed ten percent (10%) of the gross proceeds of this offering.
Investing in USBO involves other significant
risks. See "What Are the Risk Factors Involved with an Investment in USBO?" beginning on page
8
.
NEITHER THE SECURITIES AND EXCHANGE
COMMISSION ("SEC") NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THE SECURITIES OFFERED IN THIS
PROSPECTUS, OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
THE COMMODITY FUTURES TRADING COMMISSION
HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN THIS POOL NOR HAS THE COMMISSION PASSED ON THE ADEQUACY OR ACCURACY OF THIS
DISCLOSURE DOCUMENT.
This prospectus is in two parts: a
disclosure document and a statement of additional information. These parts are bound together, and both contain important information.
Per Unit
Per Basket
Price of the units*
$81.49
$4,074,500
*
Based on closing net asset value on March 22, 2013. The price may vary based on the net asset value on a particular
                                                         day.
The date of this prospectus is May 1,
2013.
COMMODITY FUTURES TRADING COMMISSION
RISK DISCLOSURE STATEMENT
YOU SHOULD CAREFULLY CONSIDER WHETHER
YOUR FINANCIAL CONDITION PERMITS YOU TO PARTICIPATE IN A COMMODITY POOL. IN SO DOING, YOU SHOULD BE AWARE THAT COMMODITY INTEREST
TRADING CAN QUICKLY LEAD TO LARGE LOSSES AS WELL AS GAINS. SUCH TRADING LOSSES CAN SHARPLY REDUCE THE NET ASSET VALUE OF THE POOL
AND CONSEQUENTLY THE VALUE OF YOUR INTEREST IN THE POOL. IN ADDITION, RESTRICTIONS ON REDEMPTIONS MAY AFFECT YOUR ABILITY TO WITHDRAW
YOUR PARTICIPATION IN THE POOL.
FURTHER, COMMODITY POOLS MAY BE SUBJECT
TO SUBSTANTIAL CHARGES FOR MANAGEMENT, AND ADVISORY AND BROKERAGE FEES. IT MAY BE NECESSARY FOR THOSE POOLS THAT ARE SUBJECT TO
THESE CHARGES TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF THEIR ASSETS. THIS DISCLOSURE DOCUMENT CONTAINS
A COMPLETE DESCRIPTION OF EACH EXPENSE TO BE CHARGED THIS POOL AT PAGE 60 AND A STATEMENT OF THE PERCENTAGE RETURN NECESSARY TO
BREAK EVEN, THAT IS, TO RECOVER THE AMOUNT OF YOUR INITIAL INVESTMENT, AT PAGE 4.
THIS BRIEF STATEMENT CANNOT DISCLOSE
ALL THE RISKS AND OTHER FACTORS NECESSARY TO EVALUATE YOUR PARTICIPATION IN THIS COMMODITY POOL. THEREFORE, BEFORE YOU DECIDE TO
PARTICIPATE IN THIS COMMODITY POOL, YOU SHOULD CAREFULLY STUDY THIS DISCLOSURE DOCUMENT, INCLUDING A DESCRIPTION OF THE PRINCIPAL
RISK FACTORS OF THIS INVESTMENT, AT PAGE 3.
YOU SHOULD ALSO BE AWARE THAT THIS COMMODITY
POOL MAY TRADE FOREIGN FUTURES OR OPTIONS CONTRACTS. TRANSACTIONS ON MARKETS LOCATED OUTSIDE THE UNITED STATES, INCLUDING MARKETS
FORMALLY LINKED TO A UNITED STATES MARKET, MAY BE SUBJECT TO REGULATIONS WHICH OFFER DIFFERENT OR DIMINISHED PROTECTION TO THE
POOL AND ITS PARTICIPANTS. FURTHER, UNITED STATES REGULATORY AUTHORITIES MAY BE UNABLE TO COMPEL THE ENFORCEMENT OF THE RULES OF
REGULATORY AUTHORITIES OR MARKETS IN NON-UNITED STATES JURISDICTIONS WHERE TRANSACTIONS FOR THE POOL MAY BE EFFECTED.
SWAPS TRANSACTIONS, LIKE OTHER FINANCIAL
TRANSACTIONS, INVOLVE A VARIETY OF SIGNIFICANT RISKS. THE SPECIFIC RISKS PRESENTED BY A PARTICULAR SWAP TRANSACTION NECESSARILY
DEPEND UPON THE TERMS OF THE TRANSACTION AND YOUR CIRCUMSTANCES. IN GENERAL, HOWEVER, ALL SWAPS TRANSACTIONS INVOLVE SOME COMBINATION
OF MARKET RISK, CREDIT RISK, COUNTERPARTY CREDIT RISK, FUNDING RISK, LIQUIDITY RISK, AND OPERATIONAL RISK.
HIGHLY CUSTOMIZED SWAPS TRANSACTIONS
IN PARTICULAR MAY INCREASE LIQUIDITY RISK, WHICH MAY RESULT IN A SUSPENSION OF REDEMPTIONS. HIGHLY LEVERAGED TRANSACTIONS MAY EXPERIENCE
SUBSTANTIAL GAINS OR LOSSES IN VALUE AS A RESULT OF RELATIVELY SMALL CHANGES IN THE VALUE OR LEVEL OF AN UNDERLYING OR RELATED
MARKET FACTOR.
IN EVALUATING THE RISKS AND CONTRACTUAL
OBLIGATIONS ASSOCIATED WITH A PARTICULAR SWAP TRANSACTION, IT IS IMPORTANT TO CONSIDER THAT A SWAP TRANSACTION MAY BE MODIFIED
OR TERMINATED ONLY BY MUTUAL CONSENT OF THE ORIGINAL PARTIES AND SUBJECT TO AGREEMENT ON INDIVIDUALLY NEGOTIATED TERMS. THEREFORE,
IT MAY NOT BE POSSIBLE FOR THE COMMODITY POOL OPERATOR TO MODIFY, TERMINATE, OR OFFSET THE POOL'S OBLIGATIONS OR THE POOL'S
EXPOSURE TO THE RISKS ASSOCIATED WITH A TRANSACTION PRIOR TO ITS SCHEDULED TERMINATION DATE.
i
UNITED STATES BRENT OIL FUND, LP
TABLE OF CONTENTS
Page
PROSPECTUS SUMMARY
1
Overview of USBO
1
Principal Offices of USBO and the General Partner
3
Principal Investment Risks of an Investment in USBO
3
Financial Condition of USBO
4
Defined Terms
4
Breakeven Analysis
4
The Offering
6
WHAT ARE THE RISK FACTORS INVOLVED WITH AN INVESTMENT IN USBO?
8
Risks Associated With Investing Directly or Indirectly in Crude Oil
8
USBO's Operating Risks
12
Risk of Leverage and Volatility
17
Over-the-Counter Contract Risk
18
Risk of Trading in International Markets
18
Tax Risk
19
THE OFFERING
21
What is USBO?
21
Who is the General Partner?
21
Compensation to the General Partner and Other Compensation
24
Director Compensation
24
Market Price of Units
25
Prior Performance of USBO
25
Prior Performance of the General Partner and Related Public Funds
29
Other Related Commodity Trading and Investment Management Experience
42
How Does USBO Operate?
42
What Is USBO's Investment Strategy?
50
What are Futures Contracts?
51
What is the Crude Oil Market and the Petroleum-Based Fuel Market?
54
Why Does USBO Purchase and Sell Futures Contracts?
55
What is the Flow of Units?
56
What are the Trading Policies of USBO?
56
Who are the Service Providers?
57
Fees of USBO
60
Form of Units
60
Transfer of Units
61
Withdrawal of Limited Partners
62
What is the Plan of Distribution?
62
Calculating NAV
63
Creation and Redemption of Units
64
Use of Proceeds
68
Limited Partnership Agreement
68
The General Partner Has Conflicts of Interest
70
The General Partner's Responsibilities and Remedies
71
Liability and Indemnification
72
Provisions of Law
72
Books and Records
73
ii
Page
Analysis of Critical Accounting Policies
73
Statements, Filings, and Reports
73
Reports to Limited Partners
73
Fiscal Year
74
Governing Law; Consent to Delaware Jurisdiction
74
Security Ownership of Principal Unitholders and Management
74
Legal Matters
74
Experts
74
Privacy Policy
75
U.S. Federal Income Tax Considerations
75
Backup Withholding
82
Other Tax Considerations
82
Investment by ERISA Accounts
82
INFORMATION YOU SHOULD KNOW
84
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
84
WHERE YOU CAN FIND MORE INFORMATION
85
INCORPORATION BY REFERENCE OF CERTAIN INFORMATION
85
SUMMARY OF PROMOTIONAL AND SALES MATERIAL
86
INTELLECTUAL PROPERTY
86
APPENDIX A
A-1
Glossary of Defined
Terms
A-1
APPENDIX B
B-1
United States Brent Oil Fund, LP, Third Amended and Restated Agreement of Limited Partnership (Including Exhibits Thereto)
B-1
STATEMENT OF ADDITIONAL INFORMATION
SAI-1
iii
PROSPECTUS SUMMARY
This is only a summary of the prospectus
and, while it contains material information about USBO and its units, it does not contain or summarize all of the information about
USBO and the units contained in this prospectus that is material and/or which may be important to you. You should read this entire
prospectus, including "What Are the Risk Factors Involved with an Investment in USBO?" beginning on page
8
,
before making an investment decision about the units.
Overview of USBO
United States Brent Oil Fund, LP, a Delaware
limited partnership ("USBO" or "Us" or "We"), is a commodity pool that issues units that may
be purchased and sold on the NYSE Arca. USBO is managed and controlled by its general partner, United States Commodity Funds LLC
(formerly known as Victoria Bay Asset Management, LLC) ("General Partner"). The General Partner is a single member
limited liability company formed in Delaware on May 10, 2005, that is registered as a commodity pool operator ("CPO")
with the Commodity Futures Trading Commission ("CFTC") and is a member of the National Futures Association ("NFA").
The net assets of USBO consist primarily
of investments in futures contracts for crude oil, heating oil, gasoline, natural gas and other petroleum-based fuels that are
traded on the ICE Futures Exchange, New York Mercantile Exchange (the "NYMEX"), or other U.S. and foreign exchanges
(collectively, "Futures Contracts"), and to a lesser extent, in order to comply with regulatory requirements or in
view of market conditions, other crude oil-related investments such as cash-settled options on Futures Contracts, forward contracts
for crude oil, cleared swap contracts and over-the-counter transactions that are based on the price of crude oil and other petroleum-based
fuels, Futures Contracts and indices based on the foregoing (collectively, "Other Crude Oil-Related Investments").
Market conditions that the General Partner currently anticipates could cause USBO to invest in Other Crude Oil-Related Investments
include those allowing USBO to obtain greater liquidity or to execute transactions with more favorable pricing. For convenience
and unless otherwise specified, Futures Contracts and Other Crude Oil-Related Investments collectively are referred to as "Crude
Oil Interests" in this prospectus.
The investment objective of USBO is for
the daily changes in percentage terms of its units' net asset value ("NAV") to reflect the daily changes in percentage
terms of the spot price of Brent crude oil as measured by the daily changes in the price of the futures contract on Brent crude
oil as traded on ICE Futures Exchange that is the near month contract to expire, except when the near month contract is within
two weeks of expiration, in which case the futures contract will be the next month contract to expire (the "Benchmark Futures
Contract"), less USBO's expenses. It is not the intent of USBO to be operated in a fashion such that its NAV will equal,
in dollar terms, the dollar price of spot crude oil or any particular futures contract based on crude oil. It is not the intent
of USBO to be operated in a fashion such that its NAV will reflect the percentage change of the price of any particular futures
contract as measured over a time period greater than any day. The General Partner believes that it is not practical to manage the
portfolio to achieve such an investment goal when investing in Futures Contracts and other Crude-Oil Related Investments. USBO
may invest in interests other than the Benchmark Futures Contract to comply with accountability levels and position limits. For
a detailed discussion of accountability levels and position limits, see "What are Futures Contracts?"
In order for a hypothetical investment
in units to break even over the next 12 months, assuming a selling price of $86.06 per unit, the investment would have to generate
a 0.92% return. For more information, see "— Breakeven Analysis."
The General Partner endeavors to place
USBO's trades in Futures Contracts and Other Crude Oil-Related-Investments and otherwise manage USBO's investments
so that "A" will be within plus/minus 10 percent of "B", where:
•
A is the average daily change in USBO's NAV for any period of 30 successive valuation days,
i.e.,
any NYSE Arca
trading day as of which USBO calculates its NAV; and
•
B is the average daily change in the price of the Benchmark Futures Contract over the same period.
The General Partner believes that market
arbitrage opportunities cause daily changes in USBO's unit price on the NYSE Arca to closely track daily changes in USBO's
NAV per unit. The General Partner further believes that the daily changes in prices of the Benchmark Future Contract have historically
tracked the daily changes in the spot price of Brent crude oil. The General Partner believes that the net effect of these two expected
relationships and the relationships described above between USBO's NAV and the Benchmark Futures Contract will be the daily
changes in the price of USBO's units on NYSE Arca will closely track, in percentage terms, the daily changes in the spot
price of Brent crude oil, less USBO's expenses.
1
The General Partner employs a "neutral"
investment strategy intended to track the changes in the price of the Benchmark Futures Contract regardless of whether the price
goes up or goes down. USBO's "neutral" investment strategy is designed to permit investors generally to purchase
and sell USBO's units for the purpose of investing indirectly in Brent crude oil in a cost-effective manner, and/or to permit
participants in the crude oil or other industries to hedge the risk of losses in their Brent crude oil-related transactions. Accordingly,
depending on the investment objective of an individual investor, the risks generally associated with investing in Brent crude oil
and/or the risks involved in hedging may exist. In addition, an investment in USBO involves the risk that the changes in the price
of USBO's units will not accurately track the changes in the price of the Benchmark Futures Contract, and that changes in
the Benchmark Futures Contract will not closely correlate with changes in the spot price of Brent crude oil. If the Benchmark Futures
Contract does not correlate with the spot price of Brent crude oil, this could cause changes in the price of USBO's units
to substantially vary from the changes in the spot price of Brent crude oil. If this were to occur, then investors may not be able
to effectively use USBO as a way to hedge against crude oil-related losses or as a way to indirectly invest in crude oil. In addition,
the price relationship between the near month contract and the next month contract that compose the Benchmark Futures Contract
will vary and may impact both the total return over time of USBO's NAV, as well as the degree to which its total return tracks
other crude oil price indices' total returns.
The Benchmark Futures Contract is changed
from the near month contract to the next month contract over a four-day period. Each month the Benchmark Futures Contract
changes starting at the end of the day on the date two weeks prior to expiration of the near month contract for that month. The
anticipated dates that the monthly four-day roll period will commence are posted on USBO's website at www.unitedstatesbrentoilfund.com,
and are subject to change without notice. During the first three days of the period, the applicable value of the Benchmark Futures
Contract is based on a combination of the near month contract and the next month contract as follows: (1) day 1 consists of
75% of the then near month contract's price plus 25% of the price of the next month contract, divided by 75% of the near
month contract's prior day's price plus 25% of the price of the next month contract, (2) day 2 consists of
50% of the then near month contract's price plus 50% of the price of the next month contract, divided by 50% of the near
month contract's prior day's price plus 50% of the price of the next month contract, and (3) day 3 consists of
25% of the then near month contract's price plus 75% of the price of the next month contract, divided by 25% of the near
month contract's prior day's price plus 75% of the price of the next month contract. On day 4, the Benchmark Futures
Contract is the next month contract to expire at that time and that contract remains the Benchmark Futures Contract until the beginning
of the following month's change in the Benchmark Futures Contract over a four-day period. On each day during the four-day
period, the General Partner anticipates it will "roll" USBO's positions in Crude Oil Interests by closing, or
selling, a percentage of USBO's positions in Crude Oil Interests and reinvesting the proceeds from closing those positions
in new Crude Oil Interests that reflect the change in the Benchmark Futures Contract.
USBO issues units only in blocks of 50,000
units called Creation Baskets and redeems units only in blocks of 50,000 units called Redemption Baskets. Only Authorized Purchasers
may purchase or redeem Creation Baskets or Redemption Baskets, respectively. An Authorized Purchaser is under no obligation to
create or redeem baskets, and an Authorized Purchaser is under no obligation to offer to the public units of any baskets it does
create. Baskets are generally created when there is a demand for units, including, but not limited to, when the market price per
unit is at a premium to the NAV per unit. Authorized Purchasers will then sell such units, which will be listed on the NYSE Arca,
to the public at per unit offering prices that are expected to reflect, among other factors, the trading price of the units on
the NYSE Arca, the NAV of USBO at the time the Authorized Purchaser purchased the Creation Basket and the NAV at the time of the
offer of the units to the public, the supply of and demand for units at the time of sale, and the liquidity of the Futures Contracts
market and the market for Other Crude Oil-Related Investments. The prices of units offered by Authorized Purchasers are expected
to fall between USBO's NAV and the trading price of the units on the NYSE Arca at the time of sale. Similarly, Baskets are
generally redeemed when the market price per unit is at a discount to the NAV per unit. Retail investors seeking to purchase or
sell units on any day will effect such transactions in the secondary market, on the NYSE Arca, at the market price per unit, rather
than in connection with the creation or redemption of Baskets.
There is no specified limit on the maximum
amount of Creation Baskets that can be sold. At some point, accountability levels and position limits on certain of the Futures
Contracts in which USBO intends to invest may practically limit the number of Creation Baskets that will be sold if the General
Partner determines that the other investment alternatives available to USBO at that time will not enable it to meet its stated
investment objective.
In managing USBO's assets, the General
Partner does not use a technical trading system that automatically issues buy and sell orders. The General Partner instead employs
quantitative methodologies whereby each time one or more baskets are purchased or redeemed, the General Partner will purchase or
sell Futures Contracts and Other Crude Oil-Related Investments with an aggregate market value that approximates the amount of Treasuries
and/or cash received or paid upon the purchase or redemption of the Basket(s).
Note to Secondary Market Investors:
The units can be directly purchased from or redeemed by USBO only in Creation Baskets or Redemption Baskets, respectively, and
only by Authorized Purchasers. Each Creation Basket and Redemption Basket consists of 50,000 units and is expected to be worth
millions of dollars. Individual investors, therefore, will not be able to directly purchase units from or redeem units with USBO.
Some of the information contained in this prospectus, including information about buying and redeeming units directly from and
to USBO is only relevant to Authorized Purchasers. Units are listed and traded on the NYSE Arca and may be purchased and sold as
individual units. Individuals interested in purchasing units in the secondary market should contact their broker. Units purchased
or sold through a broker may be subject to commissions.
Except when aggregated in Redemption
Baskets, units are not redeemable securities. There is no guarantee that units will trade at or near the per-unit NAV.
2
Principal Offices of USBO and the General Partner
USBO's principal office is located
at 1999 Harrison Street, Suite 1530, Oakland, CA, 94612. The General Partner's principal office is also located at 1999 Harrison
Street, Suite 1530, Oakland, CA, 94612. The telephone number for each of USBO and the General Partner is 510.522.9600.
Principal Investment Risks of an Investment in USBO
An investment in USBO involves a degree
of risk. Some of the risks you may face are summarized below. A more extensive discussion of these risks appears beginning on page
8
.
•
The price relationship between the near month contract to expire and the next month contract to expire that compose the Benchmark
Futures Contract will vary and may impact both the total return over time of USBO's NAV, as well as the degree to which its
total return tracks the Benchmark Futures Contract. In cases in which the near month contract's price is lower than the next
month contract's price (a situation known as "contango" in the futures market), then absent the impact of the
overall movement in Brent crude oil prices the value of the Benchmark Futures Contract would tend to decline as it approaches expiration.
In cases in which the near month contract's price is higher than the next month contract's price (a situation known
as "backwardation" in the futures market), then absent the impact of the overall movement in Brent crude oil prices
the value of the Benchmark Futures Contract would tend to rise as it approaches expiration. Assuming that spot crude oil prices
remain unchanged, and ignoring the impact of transaction costs, taxes, or other fees and expenses, USBO's total returns would
tend to see a negative impact from the crude oil futures market being in contango and would tend to see a positive impact from
the market being in backwardation.
•
Unlike mutual funds, commodity pools or other investment pools that manage their investments in an attempt to realize income
and gains and distribute such income and gains to their investors, USBO generally does not distribute cash to limited partners
or other unitholders. You should not invest in USBO if you will need cash distributions from USBO to pay taxes on your share of
income and gains of USBO, if any, or for any other reason.
•
Investors may choose to use USBO as a means of investing indirectly in Brent crude oil and there are risks involved in such
investments. The risks and hazards that are inherent in the crude oil industry may cause the price of crude oil to widely fluctuate.
•
To the extent that investors use USBO as a means of investing indirectly in Brent crude oil, there is the risk that the daily
changes in the price of USBO's units on NYSE Arca will not closely track the daily changes in the spot price of Brent crude
oil. This could happen if the price of units traded on the NYSE Arca does not correlate closely with USBO's NAV; the changes
in USBO's NAV do not correlate closely with the changes in the price of the Benchmark Futures Contract; or the changes in
the price of the Benchmark Futures Contract do not closely correlate with the changes in the cash or spot price of Brent crude
oil. This is a risk because if these correlations do not exist, then investors may not be able to use USBO as a cost-effective
way to invest indirectly in Brent crude oil or as a hedge against the risk of loss in crude oil-related transactions.
•
The structure and operation of USBO may involve conflicts of interest. For example, a conflict may arise because the General
Partner and its principals and affiliates may trade for themselves. In addition, the General Partner has sole current authority
to manage the investments and operations of USBO, which may create a conflict with the unitholders' best interests. The General
Partner may also have a conflict to the extent that its trading decisions may be influenced by the effect they would have on the
United States Oil Fund, LP ("USOF"), the United States Natural Gas Fund, LP ("USNG"), the United States
12 Month Oil Fund, LP ("US12OF"), the United States Gasoline Fund, LP ("UGA"), the United States Diesel-Heating
Oil Fund, LP ("USDHO"), the United States Short Oil Fund, LP (USSO"), the United States 12 Month Natural Gas
Fund, LP ("US12NG"), the United States Commodity Index Fund ("USCI"), the United States Metals Index Fund
("USMI"), the United States Agriculture Index Fund ("USAG"), the United States Copper Index Fund ("CPER"),
and the United States Asian Commodities Basket Fund ("UAC"), or any other commodity pool the General Partner may form
and manage in the future. UAC has been declared effective by the regulatory agencies which have regulatory authority over the General
Partner and UAC, but at the time of filing this, UAC has not been made available to the public. USOF, USNG, US12OF, UGA, USDHO,
USSO, US12NG, USCI, USMI, USAG, CPER and UAC are referred to herein as the "Related Public Funds."
•
USBO invests primarily in Futures Contracts, and particularly in Futures Contracts traded on the ICE Futures Exchange, which
involves certain risks including that changes in its NAV may not correlate with changes in the Benchmark Futures Contract.
•
USBO invests primarily in Futures Contracts that are traded outside the United States. Some non-U.S. markets present risks
because they are not subject to the same degree of regulation as their U.S. counterparts. In some of these non-U.S. markets, the
performance on a contract is the responsibility of the counterparty and is not backed by an exchange or clearing corporation and
therefore exposes USBO to credit risk. However, Futures Contracts traded on the ICE Futures Exchange, including the Benchmark Futures
Contract, are backed by the ICE Futures Exchange and do not expose USBO to the risks of some other non-U.S. exchanges or clearing
corporations. Trading in non-U.S. markets also leaves USBO susceptible to fluctuations in the value of the local currency against
the U.S. dollar for contracts not traded in U.S. dollars. The Benchmark Futures Contract, however, is traded in U.S. dollars and
does not expose USBO to the risk of currency fluctuations.
3
•
You will have no rights to participate in the management of USBO and will have to rely on the duties and judgment of the General
Partner to manage USBO.
•
USBO pays fees and expenses that are incurred regardless of whether it is profitable.
•
USBO seeks to have the daily changes in its units' NAV in percentage terms track the daily changes in the price of Brent
crude oil in percentage terms rather than profit from speculative trading of Crude Oil Interests. The General Partner therefore
endeavors to manage USBO's positions in Crude Oil Interests so that USBO's assets are, unlike those of other commodity
pools, not leveraged (
i.e.,
so that the aggregate value of USBO's unrealized losses from its investments in such
Crude Oil Interests at any time will not exceed the value of USBO's assets). There is no assurance that the General Partner
will successfully implement this investment strategy. If the General Partner permits USBO to become leveraged, and if USBO's
trading positions suddenly turn unprofitable, you could lose all or substantially all of your investment. These movements in price
may be the result of factors outside of the General Partner's control and may not be anticipated by the General Partner.
•
USBO may also invest in Other Crude Oil-Related Investments, many of which are negotiated contracts that are not as liquid
as Futures Contracts and expose USBO to credit risk that its counterparty may not be able to satisfy its obligations to USBO.
•
Regulation of the commodity interest and energy markets is extensive and constantly changing. On July 21, 2010, a broad
financial regulatory reform bill, "The Dodd-Frank Wall Street Reform and Consumer Protection Act," was signed into
law that includes provisions altering the regulation of commodity interests. The CFTC, the SEC and other federal regulators, have
been tasked with developing the rules and regulations enacting the provisions noted above. The new law and the rules currently
being promulgated thereunder may negatively impact USBO's ability to meet its investment objective, either through limits
or requirements imposed on it or upon its counterparties.
•
Cash or property will be distributed at the sole discretion of the General Partner, and the General Partner currently does
not intend to make cash or other distributions with respect to units. You will be required to pay U.S. federal income tax and,
in some cases, state, local or foreign income tax on your allocable share of USBO's taxable income, without regard to whether
you receive distributions or the amount of any distributions. Therefore, your tax liability with respect to your units may exceed
the amount of cash or value of property (if any) distributed.
For additional risks, see "What are
the Risk Factors Involved with an Investment in USBO?"
Financial Condition of USBO
USBO's NAV is calculated shortly
after the close of the core trading session on the NYSE Arca.
Defined Terms
For a glossary of defined terms, see Appendix
A.
Breakeven Analysis
The breakeven analysis below indicates
the approximate dollar returns and percentage required for the redemption value of a hypothetical investment in a single unit to
equal the amount invested twelve months after the investment was made. For purposes of this breakeven analysis, we have assumed
an initial selling price per unit of $86.06, which equals the net asset value per unit on January 31, 2013. This breakeven analysis
refers to the redemption of baskets by Authorized Purchasers and is not related to any gains an individual investor would have
to achieve in order to break even. The breakeven analysis is an approximation only.
Assumed initial selling price per unit
$
86.06
Management Fee (0.75%)
(1)
$
0.65
Creation Basket Fee
(2)
$
(0.01
)
Estimated Brokerage Fee (0.071%)
(3)
$
0.06
Interest Income (0.07%)
(4)
$
(0.07
)
Independent Directors' and Officers' Fees
(5)
$
0.02
Fees and expenses associated with tax accounting and reporting
(6)
$
0.14
Amount of trading income (loss) required for the redemption value at the end of one year to equal the initial selling price of the unit
$
0.79
Percentage of initial selling price per unit
0.92
%
4
(1)
USBO is contractually obligated to pay the General Partner a management fee based on daily net assets and paid monthly of 0.75% per
annum on average daily net assets.
(2)
Authorized Purchasers are required to pay a Creation Basket fee of $350 for each order they place to create one or more baskets.
An order must be at least one basket, which is 50,000 units. This breakeven analysis assumes a hypothetical investment in a single
unit so the Creation Basket fee is $.01 (350/50,000).
(3)
This amount is based on the actual brokerage fees for USBO calculated on an annualized basis.
(4)
USBO earns interest on funds it deposits with the futures commission merchant and the custodian and it estimates that the interest
rate will be 0.07% based on the current interest rate on three-month Treasury Bills as of January 31, 2013. The actual rate may
vary.
(5)
The foregoing assumes that the assets of USBO are aggregated with those of USOF, USNG, US12OF, UGA, USDHO, USSO, US12NG, USMI,
USAG, USCI and CPER, that the aggregate fees paid to the independent directors in 2012 was $540,586, that the allocable portion
of the fees borne by USBO equals $9,844, and that USBO has $47,334,729 in assets, which is the amount of assets as of January 31,
2013.
(6)
USBO assumed the aggregate costs attributable to tax accounting and reporting for 2012 was $75,000. The number in the break-even
table assumes USBO has $47,334,729 in assets which is the amount of assets as of January 31, 2013.
5
THE OFFERING
Offering:
USBO is offering Creation Baskets consisting of 50,000 units through ALPS Distributors, Inc. ("Marketing Agent") as marketing agent to Authorized Purchasers. Authorized Purchasers may purchase Creation Baskets consisting of 50,000 units at USBO's NAV. This is a continuous offering under Rule 415 of the Securities Act of 1933 ("1933 Act") and is not expected to terminate until all of the registered units have been sold or three years from the date of the prospectus, whichever is earlier, although the offering may be temporarily suspended during such period when suitable investments for USBO are not available or practicable. It is anticipated that when all registered units have been sold pursuant to this registration statement, additional units will be registered in subsequent registration statements.
Use of Proceeds:
The General Partner applies substantially all of USBO's assets toward trading in Futures Contracts and Other Crude Oil-Related Investments, and investing in Treasuries, cash and/or cash equivalents. The General Partner deposits a portion of USBO's net assets with the futures commission merchant, UBS Securities LLC, or other custodian to be used to meet its current or potential margin or collateral requirements in connection with its investment in Futures Contracts and Other Crude Oil-Related Investments. USBO uses only Treasuries, cash and/or cash equivalents to satisfy these requirements. The General Partner believes that all entities that hold or trade USBO's assets are based in the United States and are subject to United States regulations. Approximately 5% to 30% of USBO's assets will be committed as margin for Futures Contracts and collateral for Other Crude Oil-Related Investments. However, from time to time, the percentage of assets committed as margin/collateral may be substantially more, or less, than such range. The remaining portion of USBO's assets is held in Treasuries, cash and/or cash equivalents by its custodian, Brown Brothers Harriman & Co. (the "Custodian"). All interest income earned on these investments is retained for USBO's benefit.
NYSE Arca Symbol:
"BNO"
Creation and Redemption:
Currently and through May 1, 2014, Authorized Purchasers pay a $350 fee for each order to create or redeem one or more Creation Baskets or Redemption Baskets; on and after May 2, 2014, the fee is $1,000. Authorized Purchasers are not required to sell any specific number or dollar amount of units. The per unit price of units offered in Creation Baskets on any particular day is the total NAV of USBO calculated shortly after the close of the core trading on the NYSE Arca on that day divided by the number of issued and outstanding units. The General Partner shall notify the Depository Trust Company ("DTC") of any change in the transaction fee and will not implement any increase in the fee for Creation or Redemption Baskets until 30 days after the date of notice.
Registration, Clearance and Settlement:
Individual certificates will not be issued for the units. Instead, units will be represented by one or more global certificates, which will be deposited by the Custodian with the DTC and registered in the name of Cede & Co., as nominee for DTC.
The administrator, Brown Brothers Harriman & Co. ("Administrator"), has been appointed registrar and transfer agent for the purpose of registering and transferring units. The General Partner will recognize transfer of units only if such transfer is done in accordance with the LP Agreement, including the delivery of a transfer application.
Net Asset Value:
The NAV is calculated by taking the current market value of USBO's total assets, subtracting any liabilities and dividing that number by the total number of outstanding units. Under USBO's current operational procedures, the Administrator calculates the NAV of USBO once each NYSE Arca trading day. The NAV for a particular trading day is released after 4:00 p.m. New York time. Trading during the core trading session of the NYSE Arca typically closes at 4:00 p.m. New York time. The Administrator uses the ICE Futures Exchange settlement price (a weighted average price of trades during a three minute settlement period from 2:27 p.m. to 2:30 p.m. New York time) for the contracts traded on the ICE Futures Exchange, but calculates or determines the value of all other USBO investments as of the earlier of the close of the NYSE Arca or 4:00 p.m. New York time.
6
Fund Expenses:
USBO pays the General Partner a management fee of 0.75% of NAV on its average net assets. Brokerage fees for Treasuries, Futures Contracts, and Other Crude Oil-Related Investments were 0.071% of average net assets on an annualized basis and were paid to unaffiliated brokers. USBO also pays any licensing fees for the use of intellectual property. Registration fees paid to the SEC, FINRA, or other regulatory agency in connection with the initial offers and sales of the units and the legal, printing, accounting and other expenses associated with such registrations were paid by the General Partner, but the fees and expenses associated with subsequent SEC registrations of units are borne by USBO. USBO also is responsible for the fees and expenses, which may include directors and officers liability insurance, of the independent directors of the General Partner in connection with their activities with respect to USBO. These director fees and expenses may be shared with other funds managed by the General Partner. These fees and expenses, in total amounted to $540,586 for all funds for 2012, and USBO's portion of such fees and expenses was $9,844, although this amount may change in future years. The General Partner, and not USBO, is responsible for payment of the fees of USBO's Marketing Agent, Administrator and Custodian. USBO and/or the General Partner may be required to indemnify the Marketing Agent, Administrator or Custodian under certain circumstances. USBO also pays the fees and expenses associated with its tax accounting and reporting requirements with the exception of certain initial implementation services fees and base services fees which were paid by the General Partner. The General Partner, though under no obligation to do so, agreed to pay certain expenses, including those relating to audit expenses and tax accounting and reporting requirements normally borne by USBO to the extent that such expenses exceeded 0.15% (15 basis points) of USBO's NAV, on an annualized basis. The General Partner has no obligation to continue such payment into subsequent years. The total amount of expense waiver was $47,248 for the year ended December 31, 2012.
Termination Events:
USBO shall continue in effect from the date of its formation in perpetuity, unless sooner terminated upon the occurrence of any one or more of the following events: the death, adjudication of incompetence, bankruptcy, dissolution, withdrawal, or removal of a General Partner who is the sole remaining General Partner, unless a majority in interest of limited partners within ninety (90) days after such event elects to continue the partnership and appoints a successor general partner or the affirmative vote of a majority in interest of the limited partners subject to certain conditions. Upon termination of the partnership, the affairs of the partnership shall be wound up and all of its debts and liabilities discharged or otherwise provided for in the order of priority as provided by law. The fair market value of the remaining assets of the partnership shall then be determined by the General Partner. Thereupon, the assets of the partnership shall be distributed pro rata to the partners in accordance with their units.
Withdrawal:
As discussed in the LP Agreement, if the General Partner gives at least fifteen (15) days' written notice to a limited partner, then the General Partner may for any reason, in its sole discretion, require any such limited partner to withdraw entirely from the partnership or to withdraw a portion of its partner capital account. If the General Partner does not give at least fifteen (15) days' written notice to a limited partner, then it may only require withdrawal of all or any portion of the capital account of any limited partner in the following circumstances: (i) the unitholder made a misrepresentation to the General Partner in connection with its purchase of units; or (ii) the limited partner's ownership of units would result in the violation of any law or regulation applicable to the partnership or a partner.
7
Authorized Purchasers:
USBO has entered into agreements with several Authorized Purchasers. A current list of Authorized Purchasers is available from the Marketing Agent. Authorized Purchasers must be (1) registered broker-dealers or other securities market participants, such as banks and other financial institutions, that are not required to register as broker-dealers to engage in securities transactions, and (2) DTC Participants. To become an Authorized Purchaser, a person must enter into an Authorized Purchaser Agreement with the General Partner.
WHAT ARE THE RISK FACTORS INVOLVED WITH
AN INVESTMENT IN USBO?
You should consider carefully the risks
described below before making an investment decision. You should also refer to the other information included in this prospectus,
as well as information found in our periodic reports, which include USBO's financial statements and the related notes, that
are incorporated by reference. See "Incorporation by Reference of Certain Information."
Risks Associated With Investing Directly
or Indirectly in Crude Oil
Investing in Crude Oil Interests subjects USBO to the
risks of the crude oil industry and this could result in large fluctuations in the price of USBO's units.
USBO is subject to the risks and hazards
of the crude oil industry because it invests in Crude Oil Interests. The risks and hazards that are inherent in the crude oil industry
may cause the price of crude oil to widely fluctuate. If the changes in percentage terms of USBO's units accurately track
the changes in percentage terms of the Benchmark Futures Contract or the spot price of Brent crude oil, then the price of its units
may also fluctuate. The exploration and production of crude oil are uncertain processes with many risks. The cost of drilling,
completing and operating wells for crude oil is often uncertain, and a number of factors can delay or prevent drilling operations
or production of crude oil, including:
•
unexpected drilling conditions;
•
pressure or irregularities in formations;
•
equipment failures or repairs;
•
fires or other accidents;
•
adverse weather conditions;
•
pipeline ruptures, spills or other supply disruptions; and
•
shortages or delays in the availability of drilling rigs and the delivery of equipment.
Crude oil transmission, distribution, gathering, and processing
activities involve numerous risks that may affect the price of crude oil.
There are a variety of hazards inherent
in crude oil transmission, distribution, gathering, and processing, such as leaks, explosions, pollution, release of toxic substances,
adverse weather conditions (such as hurricanes and flooding), pipeline failure, abnormal pressures, uncontrollable flows of crude
oil, scheduled and unscheduled maintenance, physical damage to the gathering or transportation system, and other hazards which
could affect the price of crude oil. To the extent these hazards limit the supply or delivery of crude oil, crude oil prices will
increase.
Changes in the political climate could have negative consequences
for crude oil prices.
Uprise in the Middle East, including civil
war in Syria and uprise in Egypt could put oil exports in jeopardy. As global markets continue to react to various crises and uprises,
such unrests in general could impact the production, supply and cost of crude oil.
Fluctuations in the reserve capacity of crude oil could
impact future prices.
In the past, a supply disruption in one
area of the world was softened by the ability of major oil-producing nations to increase output to make up the difference. At this
time, some of that spare reserve capacity has been absorbed by increased demand.
Daily changes in USBO's per unit NAV may not correlate
with daily changes in the price of the Benchmark Futures Contract. If this were to occur, investors may not be able to effectively
use USBO as a way to hedge against crude oil-related losses or as a way to indirectly invest in crude oil.
The General Partner endeavors to invest
USBO's assets as fully as possible in Futures Contracts and Other Crude Oil-Related Investments so that the daily changes
in percentage terms of the per unit NAV closely correlate with the daily changes in percentage terms in the price of the Benchmark
Futures Contract. However, daily changes in USBO's per unit NAV may not correlate with the daily changes in the price of
the Benchmark Futures Contract for several reasons as set forth below:
8
•
USBO: (i) may not be able to buy/sell the exact amount of Futures Contract and Other Crude Oil-Related Investments to
have a perfect correlation with per unit NAV; (ii) may not always be able to buy and sell Futures Contracts or Other Crude
Oil-Related Investments at the market price; and (iii) is required to pay fees, including brokerage fees and the management
fee, which will have an effect on the correlation.
•
Short-term supply and demand for crude oil may cause the changes in the market price of the Benchmark Futures Contract to vary
from the changes in USBO's per unit NAV if USBO has fully invested in Futures Contracts that do not reflect such supply and
demand and it is unable to replace such contracts with Futures Contracts that do reflect such supply and demand.
•
USBO sells and buys only as many Futures Contracts and Other Crude Oil-Related Investments that it can to get the daily changes
in percentage terms of the per unit NAV as close as possible to the daily changes in percentage terms in the price of the Benchmark
Futures Contracts. The remainder of its assets are invested in Treasuries, cash and/or cash equivalents and are used to satisfy
initial margin and additional margin requirements, if any, and to otherwise support its investments in Crude Oil Interests. Investments
in Treasuries, cash and/or cash equivalents, both directly and as margin, provide rates of return that vary from changes in the
price of the Benchmark Futures Contract.
•
Because USBO incurs certain expenses in connection with its investment activities, and holds most of its assets in cash and/or
more liquid short-term securities for margin and other liquidity purposes and for redemptions that may be necessary on an ongoing
basis, the General Partner is generally not able to fully invest USBO's assets in Futures Contracts or Other Crude Oil-Related
Investments and there cannot be perfect correlation between changes in USBO's per unit NAV and changes in the price of the
Benchmark Futures Contract.
•
As USBO grows, there may be more or less correlation. For example, if USBO only has enough money to buy three Benchmark Futures
Contracts and it needs four contracts to track the price of Brent crude oil then the correlation will be lower, but if buys 20,000
Benchmark Futures Contracts and it needs to buy 20,001 contracts then the correlation will be higher. At certain asset levels,
USBO may be limited in its ability to buy or purchase the Benchmark Futures Contract or other Futures Contracts due to accountability
levels imposed by the relevant exchanges. To the extent that USBO invests in these other Futures Contracts or Other Crude Oil-Related
Investments, the correlation with the Benchmark Futures Contract may be lower. If USBO is required to invest in other Futures Contracts
and Other Crude Oil-Related Investments that are less correlated with the Benchmark Futures Contract, USBO would likely invest
in over-the-counter contracts to increase the level of correlation of USBO's assets. Over-the-counter contracts entail certain
risks described below under "Over-the-Counter Contract Risk."
•
USBO may not be able to buy the exact number of Futures Contracts and Other Crude Oil-Related Investments to have a perfect
correlation with the Benchmark Futures Contract if the purchase price of the Futures Contracts required to be fully invested in
such contracts is higher than the proceeds received for the sale of a Creation Basket on the day the basket was sold. In such case,
USBO could not invest the entire proceeds from the purchase of the Creation Basket in such futures contracts (for example, assume
USBO receives $2,500,000 for the sale of a Creation Basket and assume that the price of a Futures Contract for crude oil is $105,000,
then USBO could only invest in 23 Futures Contracts with an aggregate value of $2,415,000), USBO would be required to invest a
percentage of the proceeds in cash, Treasuries or other liquid securities to be deposited as margin with the futures commission
merchant through which the contracts were purchased. The remainder of the purchase price for the Creation Basket would remain invested
in Treasuries, cash and/or cash equivalents or other liquid securities as determined by the General Partner from time to time based
on factors such as potential calls for margin or anticipated redemptions. If the trading market for Futures Contracts is suspended
or closed, USBO may not be able to purchase these investments at the last reported price.
If daily changes in USBO's per unit
NAV do not correlate with daily changes in the price of the Benchmark Futures Contract, then investing in USBO may not be an effective
way to hedge against oil-related losses or indirectly invest in oil.
9
The Benchmark Futures Contract may not correlate with
the spot price of Brent crude oil and this could cause changes in the price of the units to substantially vary from the changes
in the spot price of Brent crude oil. If this were to occur, then investors may not be able to effectively use USBO as a way to
hedge against crude oil-related losses or as a way to indirectly invest in crude oil. In addition, the price relationship between
the near month contract and the next month contract that compose the Benchmark Futures Contract will vary and may impact both the
total return over time of USBO's per unit NAV, as well as the degree to which its total return tracks other crude oil price
indices' total returns.
When using the Benchmark Futures Contract
as a strategy to track the spot price of Brent crude oil, at best the correlation between changes in prices of such Crude Oil Interests
and the spot price of Brent crude oil can be only approximate. The degree of imperfection of correlation depends upon circumstances
such as variations in the speculative Brent crude oil market, supply of and demand for such Crude Oil Interests and technical influences
in futures trading. If there is a weak correlation between the Crude Oil Interests and the spot price of Brent crude oil, then
even in situations where there is also tracking among the price of units, the per unit NAV of such units and Crude Oil Interests,
the price of units may not accurately track the spot price of Brent crude oil and investors may not be able to effectively use
USBO as a way to hedge the risk of losses in their oil-related transactions or as a way to indirectly invest in crude oil.
Backwardation and contango may increase USBO's tracking
error and/or negatively impact total return.
The design of USBO's Benchmark Futures
Contract is such that every month it begins by using the near month contract to expire until the near month contract is within
two weeks of expiration, when, over a four day period, it transitions to the next month contract to expire as its benchmark contract
and keeps that contract as its benchmark until it becomes the near month contract and close to expiration. In the event of a crude
oil futures market where near month contracts trade at a higher price than next month to expire contracts, a situation described
as "backwardation" in the futures market, then absent the impact of the overall movement in crude oil prices the value
of the benchmark contract would tend to rise as it approaches expiration. As a result, the total return of the Benchmark Futures
Contract would tend to track higher. Conversely, in the event of a crude oil futures market where near month contracts trade at
a lower price than next month contracts, a situation described as "contango" in the futures market, then absent the
impact of the overall movement in crude oil prices the value of the Benchmark Futures Contract would tend to decline as it approaches
expiration. As a result the total return of the Benchmark Futures Contract would tend to track lower. When compared to total return
of other price indices, such as the spot price of crude oil, the impact of backwardation and contango may lead the total return
of USBO's per unit NAV to vary significantly. In the event of a prolonged period of contango, and absent the impact of rising
or falling oil prices, this could have a significant negative impact on USBO's per unit NAV and total return.
USBO may experience a loss if it is required to sell Treasuries
at a price lower than the price at which they were acquired.
The value of Treasuries generally moves
inversely with movements in interest rates. If USBO is required to sell Treasuries at a price lower than the price at which they
were acquired, USBO will experience a loss. This loss may adversely impact the price of the units and may decrease the correlation
among the price of units, the per unit NAV of units, the price of the Benchmark Futures Contract and Other Crude Oil-Related Investments,
and the spot price of Brent crude oil.
Certain of USBO's investments could be illiquid
which could cause large losses to investors at any time or from time to time.
USBO may not always be able to liquidate
its positions in its investments at the desired price. It is difficult to execute a trade at a specific price when there is a relatively
small volume of buy and sell orders in a market. A market disruption, such as a foreign government taking political actions that
disrupt the market in its currency, its crude oil production or exports, or in another major export, can also make it difficult
to liquidate a position. Alternatively, limits imposed by futures exchanges or other regulatory organizations, such as accountability
levels, position limits and daily price fluctuation limits, may contribute to a lack of liquidity with respect to some commodity
interests.
Unexpected market illiquidity may cause
major losses to investors at any time or from time to time. In addition, USBO has not and does not intend at this time to establish
a credit facility, which would provide an additional source of liquidity and instead relies only on the Treasuries, cash and/or
cash equivalents that it holds. The anticipated large value of the positions in Futures Contracts that the General Partner will
acquire or enter into for USBO increases the risk of illiquidity. The Other Crude Oil-Related Investments that USBO invests in,
such as negotiated over-the-counter contracts, may have a greater likelihood of being illiquid since they are contracts between
two parties that take into account not only market risk, but also the relative credit, tax, and settlement risks under such contracts.
Such contracts also have limited transferability that results from such risks and from the contract's express limitations.
Because both Futures Contracts and Other
Crude Oil-Related Investments may be illiquid, USBO's Crude Oil Interests may be more difficult to liquidate at favorable
prices in periods of illiquid markets and losses may be incurred during the period in which positions are being liquidated.
10
If the nature of hedgers and speculators in futures markets
has shifted such that crude oil purchasers are the predominant hedgers in the market, USBO might have to reinvest at higher futures
prices or choose Other Crude Oil-Related Investments.
The changing nature of the hedgers and
speculators in the crude oil market influences whether futures prices are above or below the expected future spot price. In order
to induce speculators to take the corresponding long side of the same futures contract, crude oil producers must generally be willing
to sell futures contracts at prices that are below expected future spot prices. Conversely, if the predominant hedgers in the futures
market are the purchasers of the crude oil who purchase futures contracts to hedge against a rise in prices, then speculators will
only take the short side of the futures contract if the futures price is greater than the expected future spot price of crude oil.
This can have significant implications for USBO when it is time to reinvest the proceeds from a maturing Futures Contract into
a new Futures Contract.
While USBO does not intend to take physical delivery of
crude oil under its Futures Contracts, physical delivery under such contracts impacts the value of the contracts.
While it is not the current intention of
USBO to take physical delivery of crude oil under any of its Futures Contracts, futures contracts are not required to be cash-settled
and it is possible to take delivery under some of these contracts. Storage costs associated with purchasing crude oil could result
in costs and other liabilities that could impact the value of Futures Contracts or Other Crude Oil-Related Investments. Storage
costs include the time value of money invested in crude oil as a physical commodity plus the actual costs of storing the crude
oil less any benefits from ownership of crude oil that are not obtained by the holder of a futures contract. In general, Futures
Contracts have a one-month delay for contract delivery and the back month (the back month is any future delivery month other than
the spot month) includes storage costs. To the extent that these storage costs change for crude oil while USBO holds Futures Contracts
or Other Crude Oil-Related Investments, the value of the Futures Contracts or Other Crude Oil-Related Investments, and therefore
USBO's per unit NAV, may change as well.
Regulation of the commodity interests and energy markets
is extensive and constantly changing; future regulatory developments are impossible to predict but may significantly and adversely
affect USBO.
The futures markets are subject to comprehensive
statutes, regulations, and margin requirements. In addition, the CFTC and the exchanges are authorized to take extraordinary actions
in the event of a market emergency, including, for example, the retroactive implementation of speculative position limits or higher
margin requirements, the establishment of daily price limits and the suspension of trading.
The regulation of commodity interest transactions
in the United States is a rapidly changing area of law and is subject to ongoing modification by governmental and judicial action.
Considerable regulatory attention has been focused on non-traditional investment pools that are publicly distributed in the United
States. In addition, various national governments outside of the United States have expressed concern regarding the disruptive
effects of speculative trading in the energy markets and the need to regulate the derivatives markets in general. The effect of
any future regulatory change on USBO is impossible to predict, but it could be substantial and adverse.
Investing in USBO for purposes of hedging may be subject
to several risks including the possibility of losing the benefit of favorable market movement.
Participants in the crude oil or in other industries may use
USBO as a vehicle to hedge the risk of losses in their crude oil-related transactions. There are several risks in connection with
using USBO as a hedging device. While hedging can provide protection against an adverse movement in market prices, it can also
preclude a hedger's opportunity to benefit from a favorable market movement. In a hedging transaction, the hedger may be
concerned that the hedged item will increase in price, but must recognize the risk that the price may instead decline and if this
happens he will have lost his opportunity to profit from the change in price because the hedging transaction will result in a loss
rather than a gain. Thus, the hedger foregoes the opportunity to profit from favorable price movements.
An investment in USBO may provide little or no diversification
benefits. Thus, in a declining market, USBO may have no gains to offset losses from other investments, and an investor may suffer
losses on an investment in USBO while incurring losses with respect to other asset classes.
Historically, Futures Contracts and Other
Crude Oil-Related Investments have generally been non-correlated to the performance of other asset classes such as stocks and bonds.
Non-correlation means that there is a low statistically valid relationship between the performance of futures and other commodity
interest transactions, on the one hand, and stocks or bonds, on the other hand. However, there can be no assurance that such non-correlation
will continue during future periods. If, contrary to historic patterns, USBO's performance were to move in the same general
direction as the financial markets, investors will obtain little or no diversification benefits from an investment in the units.
In such a case, USBO may have no gains to offset losses from other investments, and investors may suffer losses on their investment
in USBO at the same time they incur losses with respect to other investments.
11
Variables such as drought, floods, weather,
embargoes, tariffs and other political events may have a larger impact on crude oil prices and crude oil-linked instruments, including
Futures Contracts and Other Crude Oil-Related Investments, than on traditional securities. These additional variables may create
additional investment risks that subject USBO's investments to greater volatility than investments in traditional securities.
Non-correlation should not be confused
with negative correlation, where the performance of two asset classes would be opposite of each other. There is no historic evidence
that the spot price of crude oil and prices of other financial assets, such as stocks and bonds, are negatively correlated. In
the absence of negative correlation, USBO cannot be expected to be automatically profitable during unfavorable periods for the
stock market, or vice versa.
USBO's Operating Risks
USBO is not a registered investment company so unitholders
do not have the protections of the 1940 Act.
USBO is not an investment company subject
to the 1940 Act. Accordingly, investors do not have the protections afforded by that statute which, for example, requires investment
companies to have a majority of disinterested directors and regulates the relationship between the investment company and its investment
manager.
The General Partner is leanly staffed and relies heavily
on key personnel to manage trading activities.
In managing and directing the day-to-day
activities and affairs of USBO, the General Partner relies heavily on Messrs. Howard Mah and John Hyland. If Messrs. Mah or Hyland
were to leave or be unable to carry out their present responsibilities, it may have an adverse effect on the management of USBO.
Furthermore, Messrs. Mah and Hyland are currently involved in the management of the Related Public Funds. The General Partner has
also filed registration statements to register units of United States Sugar Fund ("USSF"), United States Natural Gas
Double Inverse Fund ("UNGD"), United States Gasoil Fund ("USGO") and UAC, each a series of the United States
Commodity Funds Trust I, and US Golden Currency Fund ("HARD"), a series of the United States Currency Funds Trust.
Mr. Mah is also employed by Ameristock Corporation, a registered investment adviser that until January 11, 2013 managed a public
mutual fund. On January 11, 2013, Ameristock Mutual Fund, Inc. merged with and into the Drexel Hamilton Centre American Equity
Fund, a series of the Drexel Hamilton Mutual Funds. Drexel Hamilton Mutual Funds and its advisor, Drexel Hamilton Investment Partners,
are not affiliated with Ameristock Corporation, the Ameristock Mutual Fund Inc., or the General Partner. After the consummation
of the reorganization and liquidation, the Ameristock Corporation maintained its non-advisory assets. It is estimated that Mr.
Mah will spend approximately 98% of his time on USBO and Related Public Fund matters. Mr. Hyland will spend approximately 100%
of his time on USBO and Related Public Fund matters. To the extent that the General Partner establishes additional funds, even
greater demands will be placed on Messrs. Mah and Hyland, as well as the other officers of the General Partner and its Board.
Accountability levels, position limits, and daily price
fluctuation limits set by the exchanges have the potential to cause a tracking error, which could cause the price of units to substantially
vary from the price of the Benchmark Futures Contract and prevent investors from being able to effectively use USBO as a way to
hedge against crude oil-related losses or as a way to indirectly invest in crude oil.
Designated contract markets such as the NYMEX and ICE Futures
have established accountability levels and position limits on the maximum net long or net short futures contracts in commodity
interests that any person or group of persons under common trading control (other than as a hedge, which an investment by USBO
is not) may hold, own or control. In addition to accountability levels and position limits, the NYMEX and ICE Futures also set
daily price fluctuation limits on futures contracts. The daily price fluctuation limit establishes the maximum amount that the
price of a futures contract may vary either up or down from the previous day's settlement price. Once the daily price fluctuation
limit has been reached in a particular futures contract, no trades may be made at a price beyond that limit.
In late 2011, the CFTC adopted rules that impose new position
limits on Referenced Contracts involving 28 energy, metals and agricultural commodities (the "Position Limit Rules").
The Position Limit Rules were scheduled to become effective on October 12, 2012. However, on September 28, 2012, the United States
District Court for the District of Columbia vacated these regulations on the basis of ambiguities in the provisions of the CEA
(as modified by the Dodd-Frank Act) upon which the regulations were based. In its September 28th decision, the court remanded the
Position Limit Rules to the CFTC with instructions to use its expertise and experience to resolve the ambiguities in the statute.
On November 15, 2012, the CFTC indicated that it will move forward with an appeal of the District Court's decision to vacate
the Position Limit Rules. At this time, it is not possible to predict how the CFTC's appeal could affect USBO, but it may
be substantial and adverse. Furthermore, until such time as the appeal is resolved or, if applicable revisions to the Position
Limit Rules are proposed and adopted, the regulatory architecture in effect prior to the enactment of the Position Limit Rules
will govern transactions in commodities and related derivatives. Under that system, the CFTC enforces federal limits on speculation
in agricultural products (e.g., corn, wheat and soy), while futures exchanges enforce accountability levels for agricultural and
certain energy products (e.g., oil and natural gas). As a result, USBO may be limited with respect to the size of its investments
in any commodities subject to these limits. Finally, subject to certain narrow exceptions, the vacated Position Limit Rules would
have required the aggregation, for purposes of the position limits, of all positions in the 28 Referenced Contracts held by a single
entity and its affiliates, regardless of whether such position existed on U.S. futures exchanges, non-U.S. futures exchanges, in
cleared swaps or in over-the-counter swaps. The CFTC is presently considering new aggregation rules, under a rulemaking proposal
that is distinct from the Position Limit Rules. At this time, it is unclear how any modified aggregation rules may affect USBO,
but it may be substantial and adverse. By way of example, the aggregation rules in combination with any potential revised Position
Limit Rules may negatively impact the ability of USBO to meet its investment objectives through limits that may inhibit the General
Partner's ability to sell additional Creation Baskets of USBO.
12
All of these limits may potentially cause a tracking error between
the price of the units and the price of the Benchmark Futures Contract. This may in turn prevent investors from being able to effectively
use USBO as a way to hedge against crude oil-related losses or as a way to indirectly invest in crude oil.
USBO has not limited the size of its offering and is committed
to utilizing substantially all of its proceeds to purchase Futures Contracts and Other Crude Oil-Related Investments. If USBO is
required to limit or reduce the size of its positions in Brent crude oil contracts on the NYMEX or ICE Futures, it may then, if
permitted under applicable regulatory requirements, purchase Futures Contracts on other exchanges that trade listed crude oil futures.
In addition, if USBO exceeds accountability levels on either the NYMEX or ICE Futures and is required by such exchanges to reduce
its holdings, such reduction could potentially cause a tracking error between the price of the units and the price of the Benchmark
Futures Contract.
To the extent that the General Partner uses spreads and
straddles as part of its trading strategy, there is the risk that the per unit NAV may not closely track the changes in the Benchmark
Futures Contract.
If the General Partner were to utilize
a spread or straddle position and the spread performed differently than expected, the results could impact USBO's tracking
error. This could affect USBO's investment objective of having its per unit NAV closely track the changes in the Benchmark
Futures Contract. Additionally, a loss on a spread position would negatively impact USBO's absolute return.
USBO and the General Partner may have conflicts of interest,
which may permit them to favor their own interests to the detriment of unitholders.
USBO and the General Partner may have inherent
conflicts to the extent the General Partner attempts to maintain USBO's asset size in order to preserve its fee income and
this may not always be consistent with USBO's objective of having the value of its units' per unit NAV track the changes
in the Benchmark Futures Contract. The General Partner's officers, directors and employees do not devote their time
exclusively to USBO.  These persons are directors, officers or employees of other entities that may compete with USBO for
their services. They could have a conflict between their responsibilities to USBO and to those other entities.
In addition, the General Partner's
principals, officers, directors or employees may trade futures and related contracts for their own account. A conflict of
interest may exist if their trades are in the same markets and at the same time as USBO trades using the clearing broker to be
used by USBO.  A potential conflict also may occur if the General Partner's principals, officers, directors or employees
trade their accounts more aggressively or take positions in their accounts which are opposite, or ahead of, the positions taken
by USBO.
The General Partner has sole current authority
to manage the investments and operations of USBO, and this may allow it to act in a way that furthers its own interests which may
create a conflict with the best interests of investors. Limited partners have limited voting control, which will limit the ability
to influence matters such as amendment of the LP Agreement, change in USBO's basic investment policy, dissolution of this
fund, or the sale or distribution of USBO's assets.
The General Partner serves as the general
partner to each of USBO, USOF, USNG, US12OF, UGA, USDHO, USSO and US12NG and the sponsor for USCI, CPER, USAG and USMI and will
serve as the sponsor for USSF, UNGD, USGO, UAC and HARD if such funds offer their securities to the public or begin operations. The
General Partner may have a conflict to the extent that its trading decisions for USBO may be influenced by the effect they would
have on the other funds it manages.  These trading decisions may be influenced since the General Partner also serves as the
general partner or sponsor for all of the funds and is required to meet all of the funds' investment objectives as well as
USBO's. If the General Partner believes that a trading decision it made on behalf of USBO might (i) impede its
other funds from reaching their investment objectives, or (ii) improve the likelihood of meeting its other funds' objectives,
then the General Partner may choose to change its trading decision for USBO, which could either impede or improve the opportunity
for USBO to meet its investment objective. In addition, the General Partner is required to indemnify the officers and directors
of its other funds if the need for indemnification arises. This potential indemnification will cause the General Partner's
assets to decrease.  If the General Partner's other sources of income are not sufficient to compensate for the indemnification,
then the General Partner may terminate and investors could lose their investment.
13
Unitholders may only vote on the removal of the General
Partner and limited partners have only limited voting rights. Unitholders and limited partners will not participate in the management
of USBO and do not control the General Partner so they will not have influence over basic matters that affect USBO. In addition,
USBO could terminate at any time and cause the liquidation and potential loss of an investor's investment and could upset
the overall maturity and timing of an investor's investment portfolio.
Limited partners will have limited voting
rights with respect to USBO's affairs. Unitholders must apply to become limited partners, and unitholders that have not applied
to become limited partners have no voting rights, other than to remove the General Partner as the general partner of USBO. Even
then, unitholders may remove the General Partner only if 66 2/3% of the unitholders elect to do so. Unitholders and limited partners
will not be permitted to participate in the management or control of USBO or the conduct of its business. Unitholders and limited
partners must therefore rely upon the duties and judgment of the General Partner to manage USBO's affairs.
USBO may terminate at any time, regardless
of whether USBO has incurred losses, subject to the terms of the LP Agreement. In particular, unforeseen circumstances, including
the death, adjudication of incompetence, bankruptcy, dissolution, or removal of the General Partner as the general partner of USBO
could cause USBO to terminate unless a majority interest of the limited partners within 90 days of the event elects to continue
the partnership and appoints a successor general partner, or the affirmative vote of a majority in interest of the limited partners
subject to certain conditions. However, no level of losses will require the General Partner to terminate USBO. USBO's termination
would cause the liquidation and potential loss of an investor's investment. Termination could also negatively affect the
overall maturity and timing of an investor's investment portfolio.
The General Partner may manage a large amount of assets
and this could affect USBO's ability to trade profitably.
Increases in assets under management may
affect trading decisions. In general, the General Partner does not intend to limit the amount of assets of USBO that it may manage.
The more assets the General Partner manages, the more difficult it may be for it to trade profitably because of the difficulty
of trading larger positions without adversely affecting prices and performance and of managing risk associated with larger positions.
Limited partners may have limited liability in certain
circumstances, including potentially having liability for the return of wrongful distributions.
Under Delaware law, a limited partner might
be held liable for USBO's obligations as if it were a general partner if the limited partner participates in the control
of the partnership's business and the persons who transact business with the partnership think the limited partner is the
general partner.
A limited partner will not be liable for
assessments in addition to its initial capital investment in any of USBO's capital securities representing units. However,
a limited partner may be required to repay to USBO any amounts wrongfully returned or distributed to it under some circumstances.
Under Delaware law, USBO may not make a distribution to limited partners if the distribution causes USBO's liabilities (other
than liabilities to partners on account of their partnership interests and nonrecourse liabilities) to exceed the fair value of
USBO's assets. Delaware law provides that a limited partner who receives such a distribution and knew at the time of the
distribution that the distribution violated the law will be liable to the limited partnership for the amount of the distribution
for three years from the date of the distribution.
With adequate notice, a limited partner may be required
to withdraw from the partnership for any reason.
If the General Partner gives at least fifteen
(15) days' written notice to a limited partner, then the General Partner may for any reason, in its sole discretion,
require any such limited partner to withdraw entirely from the partnership or to withdraw a portion of its partner capital account.
The General Partner may require withdrawal even in situations where the limited partner has complied completely with the provisions
of the LP Agreement.
USBO does not expect to make cash distributions.
USBO has not previously made any cash distributions
and intends to re-invest any realized gains in additional Crude Oil Interests rather than distributing cash to limited partners.
Therefore, unlike mutual funds, commodity pools or other investment pools that actively manage their investments in an attempt
to realize income and gains from their investing activities and distribute such income and gains to their investors, USBO generally
does not expect to distribute cash to limited partners. An investor should not invest in USBO if it will need cash distributions
from USBO to pay taxes on its share of income and gains of USBO, if any, or for any other reason. Although USBO does not intend
to make cash distributions, the income earned from its investments held directly or posted as margin may reach levels that merit
distribution,
e.g.
, at levels where such income is not necessary to support its underlying investments in Crude Oil Interests
and investors adversely react to being taxed on such income without receiving distributions that could be used to pay such tax.
If this income becomes significant then cash distributions may be made.
14
There is a risk that USBO will not earn trading gains
sufficient to compensate for the fees and expenses that it must pay and as such USBO may not earn any profit.
USBO pays brokerage charges of approximately
0.06% of average total net assets based on futures commission merchant fees of $3.50 per buy or sell, management fees of 0.75%
of NAV on its average daily net assets, and over-the-counter spreads and extraordinary expenses (
e.g.,
subsequent offering
expenses, other expenses not in the ordinary course of business, including the indemnification of any person against liabilities
and obligations to the extent permitted by law and required under the LP Agreement and under agreements entered into by the General
Partner on USBO's behalf and the bringing and defending of actions at law or in equity and otherwise engaging in the conduct
of litigation and the incurring of legal expenses and the settlement of claims and litigation) that cannot be quantified.
These fees and expenses must be paid in
all cases regardless of whether USBO's activities are profitable. Accordingly, USBO must earn trading gains sufficient to
compensate for these fees and expenses before it can earn any profit.
If offerings of the units do not raise sufficient funds
to pay USBO's future expenses and no other source of funding of expenses is found, USBO may be forced to terminate and investors
may lose all or part of their investment.
Prior to the offering of units that commenced
on June 2, 2010, all of USBO's expenses were funded by the General Partner and its affiliates. These payments by the
General Partner and its affiliates were designed to allow USBO the ability to commence the public offering of its units. USBO now
directly pays certain of these fees and expenses. The General Partner will continue to pay other fees and expenses, as set forth
in the LP Agreement. If the General Partner and USBO are unable to raise sufficient funds to cover their expenses or locate any
other source of funding, USBO may be forced to terminate and investors may lose all or part of their investment.
USBO may incur higher fees and expenses upon renewing
existing or entering into new contractual relationships.
The clearing arrangements between the clearing
brokers and USBO generally are terminable by the clearing brokers once the clearing broker has given USBO notice. Upon termination,
the General Partner may be required to renegotiate or make other arrangements for obtaining similar services if USBO intends to
continue trading in Futures Contracts or Other Crude Oil-Related Investments at its present level of capacity. The services of
any clearing broker may not be available, or even if available, these services may not be available on the terms as favorable as
those of the expired or terminated clearing arrangements.
USBO may miss certain trading opportunities because it
will not receive the benefit of the expertise of independent trading advisors.
The General Partner does not employ trading
advisors for USBO; however, it reserves the right to employ them in the future. The only advisor to USBO is the General Partner.
A lack of independent trading advisors may be disadvantageous to USBO because it will not receive the benefit of a trading advisor's
expertise.
An unanticipated number of redemption requests during
a short period of time could have an adverse effect on the per unit NAV of USBO.
If a substantial number of requests for
redemption of Redemption Baskets are received by USBO during a relatively short period of time, USBO may not be able to satisfy
the requests from USBO's assets not committed to trading. As a consequence, it could be necessary to liquidate positions
in USBO's trading positions before the time that the trading strategies would otherwise dictate liquidation.
The financial markets are currently in a period of disruption
and USBO does not expect these conditions to improve in the near future.
Since 2008, the financial markets have
experienced very difficult conditions and volatility as well as significant adverse trends. The conditions in these markets have
resulted in a decrease in availability of corporate credit and liquidity and have led indirectly to the insolvency, closure or
acquisition of a number of major financial institutions and have contributed to further consolidation within the financial services
industry. In addition, the Administration and Congress have periodically been reaching impasses in passing a fiscal budget, which
could create long-term concerns regarding the credit of the United States and interest earned, as well as the United States Government's
ability to pay its obligations to holders of Treasuries. If low interest rates on Treasuries continues or if USBO is not able to
redeem its investments in Treasuries prior to maturity and the U.S. Government cannot pay its obligations, USBO would be negatively
impacted. In addition, USBO might also be negatively impacted by its use of money market mutual funds to the extent those funds
might themselves be using Treasuries. Although the financial markets saw signs of recovery beginning in late 2010 and 2011, economic
growth in 2012 was slow and the financial markets are still fragile. A poor financial recovery could adversely affect the financial
condition and results of operations of USOF's service providers and Authorized Purchasers, which would impact the ability
of the General Partner to achieve USBO's investment objective.
15
The failure or bankruptcy of a clearing broker or USBO's
Custodian could result in a substantial loss of USBO's assets and could impair USBO in its ability to execute trades.
Under CFTC regulations, a clearing broker
maintains customers' assets in a bulk segregated account. If a clearing broker fails to do so, or even if the customers'
funds are segregated by the clearing broker but the clearing broker is unable to satisfy a substantial deficit in a customer account,
the clearing broker's other customers may be subject to risk of a substantial loss of their funds in the event of that clearing
broker's bankruptcy. In that event, the clearing broker's customers, such as USBO, are entitled to recover, even in
respect of property specifically traceable to them, only a proportional share of all property available for distribution to all
of that clearing broker's customers. The bankruptcy of a clearing broker could result in the complete loss of USBO's
assets posted with the clearing broker; though the vast majority of USBO's assets are held in Treasuries, cash and/or cash
equivalents with the Custodian and would not be impacted by the bankruptcy of a clearing broker. USBO also may be subject to the
risk of the failure of, or delay in performance by, any exchanges and markets and their clearing organizations, if any, on which
commodity interest contracts are traded.
In addition, to the extent USBO's
clearing broker is required to post USBO's assets as margin to a clearinghouse, the margin will be maintained in an omnibus
account containing the margin of all of the clearing broker's customers. If USBO's clearing broker defaults to a clearinghouse
because of a default by one of the clearing broker's other customers or otherwise, then the clearinghouse can look to all
of the margin in the omnibus account, including margin posted by USBO and any other non-defaulting customers of the clearing broker
to satisfy the obligations of the clearing broker.
From time to time, the clearing brokers
may be subject to legal or regulatory proceedings in the ordinary course of their business. A clearing broker's involvement
in costly or time-consuming legal proceedings may divert financial resources or personnel away from the clearing broker's
trading operations, which could impair the clearing broker's ability to successfully execute and clear USBO's trades.
In addition, the majority of USBO's
assets are held in Treasuries, cash and/or cash equivalents with the Custodian. The insolvency of the Custodian could result in
a complete loss of USBO's assets held by that Custodian, which, at any given time, would likely comprise a substantial portion
of USBO's total assets.
Third parties may infringe upon or otherwise violate intellectual
property rights or assert that the General Partner has infringed or otherwise violated their intellectual property rights, which
may result in significant costs and diverted attention.
Third parties may utilize USBO's
intellectual property or technology, including the use of its business methods, trademarks and trading program software, without
permission. The General Partner has a patent for USBO's business method and it has registered its trademarks. USBO does not
currently have any proprietary software. However, if it obtains proprietary software in the future, then any unauthorized use of
USBO's proprietary software and other technology could also adversely affect its competitive advantage. USBO may not have
adequate resources to implement procedures for monitoring unauthorized uses of its patents, trademarks, proprietary software and
other technology. Also, third parties may independently develop business methods, trademarks or proprietary software and other
technology similar to that of the General Partner or claim that the General Partner has violated their intellectual property rights,
including their copyrights, trademark rights, trade names, trade secrets and patent rights. As a result, the General Partner may
have to litigate in the future to protect its trade secrets, determine the validity and scope of other parties' proprietary
rights, defend itself against claims that it has infringed or otherwise violated other parties' rights, or defend itself
against claims that its rights are invalid. Any litigation of this type, even if the General Partner is successful and regardless
of the merits, may result in significant costs, divert its resources from USBO, or require it to change its proprietary software
and other technology or enter into royalty or licensing agreements.
The success of USBO depends on the ability of the General
Partner to accurately implement trading systems, and any failure to do so could subject USBO to losses on such transactions.
The General Partner uses mathematical formulas
built into a generally available spreadsheet program to decide whether it should buy or sell Crude Oil Interests each day. Specifically,
The General Partner uses the spreadsheet to make mathematical calculations and to monitor positions in Crude Oil Interests and
Treasuries and correlations to the Benchmark Futures Contract. The General Partner must accurately process the spreadsheets'
outputs and execute the transactions called for by the formulas. In addition, USBO relies on the General Partner to properly operate
and maintain its computer and communications systems.
Extraordinary transaction volume, hardware
or software failure, power or telecommunications failure, a natural disaster or other catastrophe could cause the computer systems
to operate at an unacceptably slow speed or even fail. Any significant degradation or failure of the systems that the General Partner
uses to gather and analyze information, enter orders, process data, monitor risk levels and otherwise engage in trading activities
may result in substantial losses on transactions, liability to other parties, lost profit opportunities, damages to the General
Partner's and USBO's reputations, increased operational expenses and diversion of technical resources. Any failure,
inaccuracy or delay in implementing any of the formulas or systems, including implementing upgrades and compatibility with the
computer systems of third parties, and executing USBO's transactions could impair its ability to achieve USBO's investment
objective. It could also result in decisions to undertake transactions based on inaccurate or incomplete information. This could
cause substantial losses on transactions.
16
The occurrence of a terrorist attack, or the outbreak,
continuation or expansion of war or other hostilities could disrupt USBO's trading activity and materially affect USBO's
profitability.
The operations of USBO, the exchanges,
brokers and counterparties with which USBO does business, and the markets in which USBO does business could be severely disrupted
in the event of a major terrorist attack or the outbreak, continuation or expansion of war or other hostilities. Global anti-terrorism
initiatives, political unrest in the Middle East and Southeast Asia, as well as political hostility towards the United States,
continue to fuel this concern.
Risk of Leverage and Volatility
If the General Partner permits USBO to become leveraged,
investors could lose all or substantially all of their investment if USBO's trading positions suddenly turn unprofitable.
Commodity pools' trading positions
in futures contracts or other commodity interests are typically required to be secured by the deposit of margin funds that represent
only a small percentage of a futures contract's (or other commodity interests') entire market value. This feature permits
commodity pools to "leverage" their assets by purchasing or selling futures contracts (or other commodity interests)
with an aggregate value in excess of the commodity pool's assets. While this leverage can increase the pool's profits,
relatively small adverse movements in the price of the pool's futures contracts can cause significant losses to the pool.
While the General Partner has not and does not currently intend to leverage USBO's assets, it is not prohibited from doing
so under the LP Agreement or otherwise.
The price of crude oil is volatile which could cause large
fluctuations in the price of units.
Movements in the price of crude oil may
be the result of factors outside of the General Partner's control and may not be anticipated by the General Partner. Among
the factors that can cause volatility in the price of crude oil are:
•
worldwide or regional demand for energy, which is affected by economic conditions;
•
the domestic and foreign supply and inventories of oil and gas;
•
weather conditions, including abnormally mild winter or summer weather, and abnormally harsh winter or summer weather;
•
availability and adequacy of pipeline and other transportation facilities;
•
availability of storage facilities;
•
domestic and foreign governmental regulations and taxes;
•
political conditions in gas or oil producing regions;
•
technological advances relating to energy usage or relating to technology for exploration, production, refining and petrochemical
manufacturing;
•
the ability of members of the Organization of the Petroleum Exporting Countries ("OPEC") to agree upon and maintain
oil prices and production levels;
•
the price and availability of alternative fuels;
•
the impact of energy conservation efforts; and
•
the impact of environmental and other government regulations.
17
Over-the-Counter Contract Risk
Currently, over-the-counter transactions are subject to
little regulation.
A portion of USBO's assets may be
used to trade over-the-counter contracts, such as forward contracts or swap or spot contracts. Currently, over-the-counter contracts
are typically contracts traded on a principal-to-principal, non-cleared basis through dealer markets that are dominated by major
money center and investment banks and other institutions and that prior to the passage of the Dodd-Frank Act had been essentially
unregulated by the CFTC. The markets for over-the-counter contracts have relied upon the integrity of market participants in lieu
of the additional regulation imposed by the CFTC on participants in the futures markets. To date, the forward markets have been
largely unregulated, forward contracts have been executed bi-laterally and, in general, forward contracts have not been cleared
or guaranteed by a third party. On November 16, 2012, the Secretary of the Treasury issued a final determination that exempts both
foreign exchange swaps and foreign exchange forwards from the definition of "swap" and, by extension, additional regulatory
requirements (such as clearing and margin). The final determination does not extend to other foreign exchange derivatives, such
as foreign exchange options, currency swaps, and non-deliverable forwards. While the Dodd-Frank Act and certain regulations adopted
thereunder are intended to provide additional protections to participants in the over-the-counter market, the current regulation
of the over-the-counter contracts could expose USBO in certain circumstances to significant losses in the event of trading abuses
or financial failure by participants. On November 28, 2012, the CFTC issued its final clearing determination requiring that certain
credit default swaps and interest rate swaps be cleared by registered DCOs. This is the CFTC's first clearing determination
under the Dodd-Frank Act and became effective on February 13, 2013. Determination on other types of swaps are expected in the future,
and, when finalized, could require USBO to centrally clear certain over-the-counter instruments presented entered into and settled
on a bi-lateral basis. See "Regulation" on page 5 of the Statement of Additional Information for a discussion of how
the over-the-counter market will be subject to much more extensive CFTC oversight and regulation after the implementation of the
Dodd-Frank Act.
USBO will be subject to credit risk with respect to counterparties
to over-the-counter contracts entered into by USBO or held by special purpose or structured vehicles.
USBO faces the risk of non-performance
by the counterparties to the over-the-counter contracts. Unlike in futures contracts, the counterparty to these contracts is generally
a single bank or other financial institution, rather than a clearing organization backed by a group of financial institutions.
As a result, there will be greater counterparty credit risk in these transactions. A counterparty may not be able to meet its obligations
to USBO, in which case USBO could suffer significant losses on these contracts.
If a counterparty becomes bankrupt or otherwise
fails to perform its obligations due to financial difficulties, USBO may experience significant delays in obtaining any recovery
in a bankruptcy or other reorganization proceeding. USBO may obtain only limited recovery or may obtain no recovery in such circumstances.
USBO may be subject to liquidity risk with respect to
its over-the-counter contracts.
Over-the-counter contracts are less marketable
because they are not traded on an exchange, do not have uniform terms and conditions, and are entered into based upon the creditworthiness
of the parties and the availability of credit support, such as collateral, and in general, they are not transferable without the
consent of the counterparty.  These conditions make such contracts less liquid than standardized futures contracts traded
on a commodities exchange and could adversely impact USBO's ability to realize the full value of such contracts.  In
addition, even if collateral is used to reduce counterparty credit risk, sudden changes in the value of over-the-counter transactions
may leave a party open to financial risk due to a counterparty default since the collateral held may not cover a party's
exposure on the transaction in such situations.
In general, valuing over-the-counter derivatives
is less certain than valuing actively traded financial instruments such as exchange traded futures contracts and securities or
cleared swaps because the price and terms on which such over-the-counter derivatives are entered into or can be terminated are
individually negotiated, and those prices and terms may not reflect the best price or terms available from other sources. In addition,
while market makers and dealers generally quote indicative prices or terms for entering into or terminating over-the-counter contracts,
they typically are not contractually obligated to do so, particularly if they are not a party to the transaction. As a result,
it may be difficult to obtain an independent value for an outstanding over-the-counter derivatives transaction.
The Dodd-Frank Act requires the CFTC and
SEC to establish "both initial and variation margin requirements on all swaps that are not cleared by a registered clearing
organization" (i.e., uncleared swaps). In addition, the Dodd-Frank Act provides parties who post initial margin to a swap
dealer or major swap participant with a statutory right to insist that such margin be held in a segregated account with an independent
custodian. At this time, the CFTC has proposed a rule addressing this statutory right of certain market participants but has not
yet implemented any final rules. On November 16, 2012, the Secretary of the Treasury issued a final determination that exempts
both foreign exchange swaps and foreign exchange forwards from the definition of "swap" and, by extension, additional
regulatory requirements (such as clearing and margin).
Risk of Trading in International Markets
Trading in international markets could expose USBO to
credit and regulatory risk.
USBO invests primarily in Futures Contracts,
a significant portion of which are traded on exchanges outside the United States, including the ICE Futures. Some non-U.S. markets
present risks because they are not subject to the same degree of regulation as their U.S. counterparts. The CFTC, NFA and the domestic
exchanges have little, if any, regulatory authority over the activities of any foreign boards of trade or exchanges, including
the execution, delivery and clearing of transactions, and have little, if any, power to compel enforcement of the rules of a foreign
board of trade or exchange or of any applicable non-U.S. laws.
Similarly, the rights of market participants,
such as USBO, in the event of the insolvency or bankruptcy of a non-U.S. market or broker are also likely to be more limited than
in the case of U.S. markets or brokers. As a result, in these markets, USBO has less legal and regulatory protection than it does
when it trades domestically.
18
In some of these non-U.S. markets, the
performance on a contract is the responsibility of the counterparty and is not backed by an exchange or clearing corporation and
therefore exposes USBO to credit risk. However, Futures Contracts traded on the ICE Futures, including the Benchmark Futures Contract,
are backed by the ICE Futures and may not expose USBO to the risks of some other non-U.S. exchanges or clearing corporations that
do not have similar backing. Trading in non-U.S. markets also leaves USBO susceptible to swings in the value of the local currency
against the U.S. dollar. The Benchmark Futures Contract, however, is traded in U.S. dollars and does not expose USBO to the risk
of currency fluctuations. Additionally, trading on non-U.S. exchanges is subject to the risks presented by exchange controls, expropriation,
increased tax burdens and exposure to local economic declines and political instability. An adverse development with respect to
any of these variables could reduce the profit or increase the loss earned on trades in the affected international markets.
International trading activities subject USBO to foreign
exchange risk.
The price of any non-U.S. commodity interest
and, therefore, the potential profit and loss on such investment, may be affected by any variance in the foreign exchange rate
between the time the order is placed and the time it is liquidated, offset or exercised. As a result, changes in the value of the
local currency relative to the U.S. dollar may cause losses to USBO even if the contract traded is profitable.
USBO's international trading could expose it to
losses resulting from non-U.S. exchanges that are less developed or less reliable than United States exchanges.
Some non-U.S. exchanges may be in a more
developmental stage so that prior price histories may not be indicative of current price dynamics. In addition, USBO may not have
the same access to certain positions on foreign trading exchanges as do local traders, and the historical market data on which
the General Partner bases its strategies may not be as reliable or accessible as it is for U.S. exchanges.
Tax Risk
An investor's tax liability may exceed the amount
of distributions, if any, on its units.
Cash or property will be distributed at
the sole discretion of the General Partner. The General Partner has not and does not currently intend to make cash or other distributions
with respect to units. Investors will be required to pay U.S. federal income tax and, in some cases, state, local, or foreign income
tax, on their allocable share of USBO's taxable income, without regard to whether they receive distributions or the amount
of any distributions. Therefore, the tax liability of an investor with respect to its units may exceed the amount of cash or value
of property (if any) distributed.
An investor's allocable share of taxable income
or loss may differ from its economic income or loss on its units.
Due to the application of the
assumptions and conventions applied by USBO in making allocations for tax purposes and other factors, an investor's
allocable share of USBO's income, gain, deduction or loss may be different than its economic profit or loss from its
units for a taxable year. This difference could be temporary or permanent and, if permanent, could result in it being taxed
on amounts in excess of its economic income.
Items of income, gain, deduction, loss and credit with
respect to units could be reallocated if the IRS does not accept the assumptions and conventions applied by USBO in allocating
those items, with potential adverse consequences for an investor.
The U.S. tax rules pertaining to partnerships
are complex and their application to large, publicly traded partnerships such as USBO is in many respects uncertain. USBO applies
certain assumptions and conventions in an attempt to comply with the intent of the applicable rules and to report taxable income,
gains, deductions, losses and credits in a manner that properly reflects unitholders' economic gains and losses. These assumptions
and conventions may not fully comply with all aspects of the Internal Revenue Code (the "Code") and applicable Treasury
Regulations, however, and it is possible that the U.S. Internal Revenue Service will successfully challenge USBO's allocation
methods and require USBO to reallocate items of income, gain, deduction, loss or credit in a manner that adversely affects investors.
If this occurs, investors may be required to file an amended tax return and to pay additional taxes plus deficiency interest.
USBO could be treated as a corporation for federal income
tax purposes, which may substantially reduce the value of the units.
USBO has received an opinion of counsel
that, under current U.S. federal income tax laws, USBO will be treated as a partnership that is not taxable as a corporation for
U.S. federal income tax purposes, provided that (i) at least 90 percent of USBO's annual gross income consists of "qualifying
income" as defined in the Code, (ii) USBO is organized and operated in accordance with its governing agreements and applicable
law and (iii) USBO does not elect to be taxed as a corporation for federal income tax purposes. Although the General Partner anticipates
that USBO has satisfied and will continue to satisfy the "qualifying income" requirement for all of its taxable years,
that result cannot be assured. USBO has not requested and will not request any ruling from the IRS with respect to its classification
as a partnership not taxable as a corporation for federal income tax purposes. If the IRS were to successfully assert that USBO
is taxable as a corporation for federal income tax purposes in any taxable year, rather than passing through its income, gains,
losses and deductions proportionately to unitholders, USBO would be subject to tax on its net income for the year at corporate
tax rates. In addition, although the General Partner does not currently intend to make distributions with respect to units, any
distributions would be taxable to unitholders as dividend income. Taxation of USBO as a corporation could materially reduce the
after-tax return on an investment in units and could substantially reduce the value of the units.
19
USBO is organized and operated as a limited partnership
in accordance with the provisions of the LP Agreement and applicable state law, and therefore, USBO has a more complex tax treatment
than traditional mutual funds.
USBO is organized and operated as a limited
partnership in accordance with the provisions of the LP Agreement and applicable state law. No U.S. federal income tax is paid
by USBO on its income. Instead, USBO will furnish unitholders each year with tax information on IRS Schedule K-1 (Form 1065) and
each U.S. unitholder is required to report on its U.S. federal income tax return its allocable share of the income, gain, loss
and deduction of USBO. This must be reported without regard to the amount (if any) of cash or property the unitholder receives
as a distribution from USBO during the taxable year. A unitholder, therefore, may be allocated income or gain by USBO but receive
no cash distribution with which to pay the tax liability resulting from the allocation, or may receive a distribution that is insufficient
to pay such liability.
In addition to federal income taxes, unitholders
may be subject to other taxes, such as state and local income taxes, unincorporated business taxes, business franchise taxes and
estate, inheritance or intangible taxes that may be imposed by the various jurisdictions in which USBO does business or owns property
or where the unitholders reside. Although an analysis of those various taxes is not presented here, each prospective unitholder
should consider their potential impact on its investment in USBO. It is each unitholder's responsibility to file the appropriate
U.S. federal, state, local and foreign tax returns.
PROSPECTIVE INVESTORS ARE STRONGLY URGED
TO CONSULT THEIR OWN TAX ADVISOR WITH RESPECT TO THE POSSIBLE TAX CONSEQUENCES TO THEM OF AN INVESTMENT IN UNITS; SUCH TAX CONSEQUENCES
MAY DIFFER IN RESPECT TO DIFFERENT INVESTORS.
20
THE OFFERING
What is USBO?
USBO is a Delaware limited partnership
organized on September 2, 2009. USBO maintains its main business office at 1999 Harrison Street, Suite 1530, Oakland, California
94612. USBO is a commodity pool that issues limited partnership interests ("units") traded on the NYSE Arca, Inc. (the
"NYSE Arca"). It operates pursuant to the terms of the LP Agreement, which grants full management control to the General
Partner.
USBO is a publicly traded limited partnership
which seeks to have the daily changes in percentage terms of its units' NAV track the daily changes in percentage terms of
the spot price of Brent crude oil, as measured by the daily changes in the price of the futures contract for Brent crude oil traded
on the ICE Futures Exchange, less USBO's expenses. The General Partner does not intend to operate USBO in a fashion such
that its per unit NAV will equal, in dollar terms, the spot price of Brent crude oil or any particular futures contract based on
crude oil. It is not the intent of USBO to be operated in a fashion such that its NAV will reflect the percentage change of the
price of any particular futures contract as measured over a time period greater than one day. USBO invests in a mixture of listed
crude oil futures contracts, other non-listed crude oil related investments, Treasuries, cash and cash equivalents. USBO's
units began trading on the NYSE Arca on June 2, 2010. As of January 31, 2013, USBO had total net assets of $47,334,729 and
had outstanding units of 5,500,000.
Who is the General Partner?
Our sole General Partner is United States
Commodity Funds LLC, a single member limited liability company that was formed in the state of Delaware on May 10, 2005. Prior
to June 13, 2008, the General Partner was known as Victoria Bay Asset Management, LLC. It maintains its main business office
at 1999 Harrison Street, Suite 1530, Oakland, California, 94612. The General Partner is a wholly-owned subsidiary of Wainwright
Holdings, Inc., a Delaware corporation ("Wainwright"). Mr. Nicholas Gerber (discussed below) controls Wainwright
by virtue of his ownership of Wainwright's shares. Wainwright is a holding company that previously owned an insurance company
organized under Bermuda law, which has been liquidated, and a registered investment advisor firm named Ameristock Corporation,
which has been distributed to the Wainwright shareholders. The General Partner is a member of the NFA and is registered with the
CFTC as of December 1, 2005. The General Partner's registration as a CPO with the NFA was approved on December 1,
2005.
See "Composite Performance Data for
USBO" on page 28. See also "Prior Performance of the General Partner and Related Public Funds" on page 29.
The General Partner is required to evaluate
the credit risk of USBO to the futures commission merchant, oversee the purchase and sale of USBO's units by certain Authorized
Purchasers, review daily positions and margin requirements of USBO, and manage USBO's investments. The General Partner also
pays the fees of the Marketing Agent, the Administrator, and the Custodian.
Limited partners have no right to elect
the General Partner on an annual or any other continuing basis. If the General Partner voluntarily withdraws, however, the holders
of a majority of USBO's outstanding units (excluding for purposes of such determination units owned, if any, by the withdrawing
General Partner and its affiliates) may elect its successor. The General Partner may not be removed as general partner except upon
approval by the affirmative vote of the holders of at least 66 2/3% of our outstanding units (excluding units owned, if any,
by the General Partner and its affiliates), subject to the satisfaction of certain conditions set forth in the LP Agreement.
The business and affairs of our General
Partner are managed by a board of directors (the "Board"), which is comprised of three management directors some of
whom are also its executive officers (the "Management Directors"), and three independent directors who meet the independent
director requirements established by the NYSE Arca Equities Rules and the Sarbanes-Oxley Act of 2002. Notwithstanding the foregoing,
the Management Directors have the authority to manage the General Partner pursuant to its Limited Liability Company Agreement,
as amended from time to time. Through its Management Directors, the General Partner manages the day-to-day operations of USBO.
The Board has an audit committee which is made up of the three independent directors (Peter M. Robinson, Gordon L. Ellis, and Malcolm
R. Fobes III). The audit committee is governed by an audit committee charter that is posted on USBO's website. Gordon L.
Ellis and Malcolm R. Fobes III meet the financial sophistication requirements of the NYSE Arca and the audit committee charter.
Mr. Nicholas Gerber and Mr. Howard
Mah serve as executive officers of the General Partner. USBO has no executive officers. Its affairs are generally managed by the
General Partner. The following individuals serve as Management Directors of the General Partner.
21
Nicholas Gerber
has been
the President and CEO of the General Partner since June 9, 2005 and a Management Director of the General Partner since May 10,
2005. He maintains his main business office at 1999 Harrison Street, Suite 1530, Oakland, California 94612. He has been listed
with the CFTC as a Principal of the General Partner since November 29, 2005, as Branch Manager of the General Partner since May
15, 2009, and registered with the CFTC as an Associated Person of the General Partner on December 1, 2005. Mr. Gerber also served
as Vice President/Chief Investment Officer of Lyon's Gate Reinsurance Company, Ltd., a company formed to reinsure workmen's
compensation insurance, from June 2003 to December 2009. Mr. Gerber has an extensive background in securities portfolio management
and in developing investment funds that make use of indexing and futures contracts. He is also the founder of Ameristock Corporation,
a California-based investment adviser registered under the Investment Advisers Act of 1940. From August 1995 to January 2013, Mr.
Gerber was the portfolio manager of the Ameristock Mutual Fund, Inc. a mutual fund registered under the Investment Company Act
of 1940, focused on large cap U.S. equities that, as of December 31, 2012, had $126,879,540 in assets. On January 11, 2013, the
Ameristock Mutual Fund, Inc. merged with and into the Drexel Hamilton Centre American Equity Fund, a series of Drexel Hamilton
Mutual Funds. Drexel Hamilton Mutual Funds is not affiliated with Ameristock Corporation, the Ameristock Mutual Fund, Inc. or the
General Partner. He has also been a Trustee for the Ameristock ETF Trust since June 2006, and served as a portfolio manager for
the Ameristock/Ryan 1 Year, 2 Year, 5 Year, 10 Year and 20 Year Treasury ETF from June 2007 to June 2008 when such funds were liquidated.
In these roles, Mr. Gerber has gained extensive experience in evaluating and retaining third-party service providers, including
custodians, accountants, transfer agents, and distributors. Mr. Gerber has passed the Series 3 examination for associated persons.
He holds an MBA in finance from the University of San Francisco and a BA from Skidmore College. Mr. Gerber is 50 years old.
In concluding that Mr. Gerber should serve
as Management Director of the General Partner, the General Partner considered his broad business experiences in the industry including:
forming and managing investment companies and commodity pools, raising capital for such entities and founding and managing non-finance
related companies.
Howard Mah
has been a Management
Director of the General Partner since May 10, 2005, Secretary of the General Partner since June 9, 2005, and Chief Financial Officer
of the General Partner since May 23, 2006 and Treasurer since February 23, 2012. He has been listed with the CFTC as a Principal
of the General Partner since November 29, 2005. In these roles, Mr. Mah is currently involved in the management of USBO and the
Related Public Funds and will be involved in the management of USSF, UNGD, USGO, UAC and HARD, if such funds commence operations.
Mr. Mah also served as the General Partner's Chief Compliance Officer from February 2006 until January 2013. He received
a Bachelor of Education from the University of Alberta, in 1986 and an MBA from the University of San Francisco in 1988. He served
as Secretary and Chief Compliance Officer of the Ameristock ETF Trust from February 2007 until June 2008 when the trust was liquidated,
Chief Compliance Officer of Ameristock Corporation since January 2001; a tax and finance consultant in private practice since January
1995, Secretary of Ameristock Mutual Fund from June 1995 to January 2013 and Ameristock Focused Value Fund from December 2000 to
January 2005; Chief Compliance Officer of Ameristock Mutual Fund from August 2004 to January 2013 and the Co-Portfolio Manager
of the Ameristock Focused Value Fund from December 2000 to January 2005. Mr. Mah is 48 years old.
In concluding that Mr. Mah should serve
as Management Director of the General Partner, the General Partner considered his background in accounting and finance, as well
as his experience as Chief Compliance Officer for the General Partner and Ameristock Corporation.
Andrew F. Ngim
has been a
Management Director of the General Partner since May 10, 2005 and Treasurer of the General Partner from June 9, 2005 to February
23, 2012. Mr. Ngim has acted as Portfolio Manager for USCI, CPER, USAG and USMI since January 31, 2013. He has been listed with
the CFTC as a Principal of the General Partner since November 29, 2005. Mr. Ngim is currently involved in the management of USBO
and the Related Public Funds and will be involved in the management of USSF, UNGD, USGO, UAC and HARD, if such funds commence operations.
He received a Bachelor of Arts from the University of California at Berkeley in 1983. Mr. Ngim has been Ameristock Corporation's
Managing Director from January 1999 to January 2013 and co-portfolio manager of Ameristock Mutual Fund Inc. from January 2000 to
January 2013, Trustee of the Ameristock ETF Trust from February 2007 to June 2008, and served as a portfolio manager for the Ameristock/Ryan
1 Year, 2 Year, 5 Year, 10 Year and 20 Year Treasury ETF from June 2007 to June 2008 when such funds were liquidated. Mr. Ngim
is 52 years old.
In concluding that Mr. Ngim should serve
as Management Director of the General Partner, the General Partner considered his broad career in the financial services industry.
The following individuals provide significant
services to each of CPER but are employed by the General Partner.
John P. Love
, CFA has acted
as a Portfolio Manager since the launch of USOF in 2006 and is currently the Portfolio Manager for USNG, UGA, USDHO and US12NG.
Effective March 1, 2010, Mr. Love became the Senior Portfolio Manager for the Related Public Funds and is expected to be the Portfolio
Manager for USSF, UNGD, USGO and UAC, if such funds commence operations. Mr. Love is also employed by the General Partner. He has
been listed with the CFTC as a Principal of the General Partner since January 17, 2006. Mr. Love also served as the operations
manager of Ameristock Corporation from October 2002 to January 2007, where he was responsible for back office and marketing activities
for the Ameristock Mutual Fund and Ameristock Focused Value Fund and for the firm in general. Mr. Love holds a Series 7 and a Series
3 license and was registered with the CFTC as an Associated Person of the General Partner from December 1, 2005 through April 16,
2009. Mr. Love received his CFA designation in 2012. He is a member of the CFA Institute (formerly AIMR) and the CFA Society of
Los Angeles. Mr. Love is a graduate of the University of Southern California. Mr. Love is 41 years old.
22
John T. Hyland
, CFA is employed
by the General Partner and has acted as the Chief Investment Officer for the General Partner since January 2008. Mr. Hyland was
Portfolio Manager for USBO, USOF, USNG, US12OF, UGA, USDHO, USSO, US12NG, USBO, USCI and CPER beginning in April 2006, April 2007,
December 2007, February 2008, April 2008, September 2009, November 2009, June 2010, August 2010 and November 2011, respectively.
He will also be the Chief Investment Officer for USSF, UNGD, USGO, UAC and HARD upon the commencement of such funds' operations.
Since December 1, 2005, Mr. Hyland has been registered with the CFTC as an Associated Person of the General Partner and since January
17, 2006, he has been listed with the CFTC as a Principal of the General Partner. As part of his responsibilities for the General
Partner and the Related Public Funds, Mr. Hyland oversees the day-to-day trading, helps set investment policies and oversees USBo
and the Related Public Funds' activities with their futures commission brokers, custodian-administrator and marketing agent.
Mr. Hyland has an extensive background in portfolio management and research with both equity and fixed income securities, as well
as in the development of new types of complex investment funds. In July 2001, Mr. Hyland founded Towerhouse Capital Management,
LLC, a firm that provided portfolio management and new fund development expertise to non-U.S. institutional investors through December
2009. Since January 2010, Towerhouse Capital Management has been inactive. Mr. Hyland was a Principal for Towerhouse in charge
of portfolio research and product development regarding U.S. and non-U.S. real estate related securities. Mr. Hyland received his
CFA designation in 1994. Mr. Hyland is a member of the CFA Institute (formerly AIMR) and is a member and former president of the
CFA Society of San Francisco. He is also a member of the National Association of Petroleum Investment Analysts, a not-for-profit
organization of investment professionals focused on the oil industry. He is a graduate of the University of California, Berkeley.
Mr. Hyland is 53 years old.
Ray W. Allen
acts as a Portfolio
Manager for USBO, USOF, US12OF and USSO. He has been employed by the General Partner since January 14, 2008. He holds a Series
3 license and registered with the CFTC as an Associated Person of the General Partner from March 25, 2008 to November 1, 2012.
He has been listed with the CFTC as a Principal of the General Partner since March 18, 2009. Mr. Allen's responsibilities
include daily trading and operations for USBO, USOF, US12OF and USSO. Mr. Allen also acted as a Portfolio Manager for UGA, USDHO
and US12NG until March 1, 2010. In addition, from February 2002 to October 2007, Mr. Allen was responsible for analyzing and evaluating
the creditworthiness of client companies at Marble Bridge Funding Group Inc., in Walnut Creek, CA. Marble Bridge Funding Group
Inc. is a commercial finance company providing capital to entrepreneurial companies. For the period from October 2007 to January
14, 2008, Mr. Allen was not employed by the General Partner and did not engage in any business-related activity. Mr. Allen received
a BA in Economics from the University of California at Berkeley in 1980. Mr. Allen is 56 years old.
The following individuals serve
as independent directors of the General Partner.
Peter M. Robinson
has been
an independent director of the General Partner since September 30, 2005 and, as such, serves on the Board of the General Partner,
which acts on behalf of USBO and the Related Public Funds. He has been listed with the CFTC as a Principal of the General Partner
since December 2005. Mr. Robinson has been employed as a Research Fellow with the Hoover Institution since 1993. The Hoover Institution
is a public policy think tank located on the campus of Stanford University. Mr. Robinson graduated from Dartmouth College in 1979
and Oxford University in 1982. Mr. Robinson received an MBA from the Stanford University Graduate School of Business. Mr. Robinson
has also written three books and has been published in the New York Times, Red Herring, and Forbes ASAP and he is the editor of
Can Congress Be Fixed?: Five Essays on Congressional Reform (Hoover Institution Press, 1995). Mr. Robinson is 55 years old.
In concluding that Mr. Robinson should
serve as independent director of the General Partner, the General Partner considered his broad experience in the United States
government, including his employment at the SEC, and his knowledge of and insight into public policy.
Gordon L. Ellis
has been
an independent director of the General Partner since September 30, 2005 and, as such, serves on the Board of the General Partner,
which acts on behalf of USBO and the Related Public Funds. He has been listed with the CFTC as a Principal of the General Partner
since November 2005. Mr. Ellis was a founder and Chairman of International Absorbents, Inc., a NYSE listed company and the parent
company of Absorption Corp., since July 1988, President and Chief Executive Officer since November 1996 and a Class I Director
of the company since July 1985. Mr. Ellis was also a director of Absorption Corp., International Absorbents, Inc.'s wholly-owned
subsidiary which is engaged in developing, manufacturing and marketing a wide range of animal care and industrial absorbent products.
International Absorbents and Absorption Corp were sold to a private investment banking firm in May 2010. Mr. Ellis continues as
a director of the privatized firm. Mr. Ellis was chairman and a founder of Polymer Solutions, Inc. from April 1986 to February
2004, a former publicly-held company that sold all of its assets to a senior coatings manufacturer effective February 3, 2004.
Polymer Solutions previously developed and manufactured paints, coatings, stains and primers for wood furniture manufacturers.
Mr. Ellis is founder and chairman of Lupaka Gold Corp. since November 2000, a Toronto Stock Exchange listed company developing
a precious metal deposit in South America (from November 2000 to May 2010, Lupaka Gold Corp. was called Kcrok Enterprises Ltd.).
Mr. Ellis has his Chartered Directors designation from The Director's College (a joint venture of McMaster University and
The Conference Board of Canada). Mr. Ellis is a professional engineer with an MBA in international finance. Mr. Ellis is 66 years
old.
23
In concluding that Mr. Ellis should serve
as independent director of the General Partner, the General Partner considered his experience serving as the Chairman and Chief
Executive Officer of a former publicly-traded corporation as well as his experience as an entrepreneur.
Malcolm R. Fobes III
has
been an independent director of the General Partner since September 30, 2005 and, as such, serves on the Board of the General Partner,
which acts on behalf of USBO and the Related Public Funds. He has been listed with the CFTC as a Principal of the General Partner
since November 2005. Mr. Fobes is the founder, Chairman and Chief Executive Officer of Berkshire Capital Holdings, Inc., a California-based
investment adviser registered under the Investment Advisers Act of 1940, that has been sponsoring and providing portfolio management
services to mutual funds since June 1997. Since June 1997, Mr. Fobes has been the Chairman and President of The Berkshire Funds,
a mutual fund investment company registered under the Investment Company Act of 1940. Mr. Fobes also serves as portfolio manager
of the Berkshire Focus Fund, a mutual fund registered under the Investment Company Act of 1940, which concentrates its investments
in the electronic technology industry. From April 2000 to July 2006, Mr. Fobes also served as co-portfolio manager of The Wireless
Fund, a mutual fund registered under the Investment Company Act of 1940, which concentrates its investments in companies engaged
in the development, production, or distribution of wireless-related products or services. In these roles, Mr. Fobes has gained
extensive experience in evaluating and retaining third-party service providers, including custodians, accountants, transfer agents,
and distributors. Mr. Fobes was also contributing editor of Start a Successful Mutual Fund: The Step-by-Step Reference Guide to
Make It Happen (JV Books, 1995). Mr. Fobes holds a B.S. degree in Finance with a minor in Economics from San Jose State University
in California. Mr. Fobes is 48 years old.
In concluding that Mr. Fobes should
serve as independent director of the General Partner, the General Partner considered his background as founder, Chairman and Chief
Executive Officer of a registered investment adviser as well as Chairman, President, Chief Financial Officer and Portfolio Manager
of a mutual fund investment company.
The following are individual Principals,
as that term is defined in CFTC Rule 3.1, for the General Partner: Nicholas Gerber, Melinda Gerber, the Nicholas and Melinda Gerber
Living Trust, Howard Mah, Andrew Ngim, Peter Robinson, Gordon Ellis, Malcolm Fobes, John Love, John Hyland, Ray Allen, Wainwright
Holdings Inc. and Margaret Johnson. These individuals are Principals due to their positions, however, Nicholas Gerber and Melinda
Gerber are also Principals due to their controlling stake in Wainwright. None of the Principals owns or has any other beneficial
interest in USBO. John Love, Ray Allen and John Hyland make trading and investment decisions for USBO. John Love and Ray Allen
execute trades on behalf of USBO. In addition, Nicholas Gerber and John Hyland are registered with the CFTC as Associated Persons
of the General Partner and are NFA Associate Members.
Compensation to the General Partner and Other Compensation
USBO does not directly compensate any of
the executive officers noted above. The executive officers noted above are compensated by the General Partner for the work they
perform on behalf of USBO and other entities controlled by the General Partner. USBO does not reimburse the General Partner for,
nor does it set the amount or form of any portion of, the compensation paid to the executive officers by the General Partner. USBO
pays fees to the General Partner pursuant to the LP Agreement under which it is obligated to pay the General Partner an annualized
fee of 0.75% of its average daily net assets. For 2012, USBO paid the General Partner aggregate management fees of $391,039.
Director Compensation
The following table sets forth compensation
earned during the year ended December 31, 2012, by the directors of the General Partner. USBO's portion of the aggregate
fees paid to the directors for the year ended December 31, 2012 was $5,401.
Name
Fees
Earned
or
Paid in
Cash
Stock
Awards
Option
Awards
Non-Equity
Incentive Plan
Compensation
Change in
Pension
Value and
Nonqualified
Deferred
Compensation
Plan
All Other
Compensation
Total
Management Directors
Nicholas Gerber
$
0
NA
NA
NA
$
0
$
0
$
0
Andrew F. Ngim
$
0
NA
NA
NA
$
0
$
0
$
0
Howard Mah
$
0
NA
NA
NA
$
0
$
0
$
0
Robert L. Nguyen(1)
$
0
NA
Independent Directors
Peter M. Robinson
$
101,000
NA
NA
NA
$
0
$
$
101,000
Gordon L. Ellis
$
101,000
NA
NA
NA
$
0
$
$
101,000
Malcolm R. Fobes III
(2)
$
121,000
NA
NA
NA
$
0
$
$
121,000
24
(1)
Effective March 20, 2012, Mr. Nguyen resigned as a Management Director of the General Partner.
(2)
Mr. Fobes serves as chairman of the audit committee of the General Partner and receives additional compensation in recognition
of the additional responsibilities he has undertaken in this role.
Market Price of Units
USBO's units have traded on the NYSE
Arca under the symbol "BNO" since June 2, 2010. The following table sets forth the range of reported high and
low sale prices of the units as reported on NYSE Arca for the periods indicated below.
High
Low
Fiscal year 2012
First quarter
$
88.58
$
76.68
Second quarter
$
88.16
$
63.45
Third quarter
$
84.41
$
68.99
Fourth quarter
$
83.56
$
76.91
Fiscal year 2011
First quarter
$
77.82
$
61.86
Second quarter
$
84.11
$
70.43
Third quarter
$
79.31
$
67.64
Fourth quarter
$
79.10
$
67.40
As of December 31, 2012, USBO had 2,448
holders of units.
Prior Performance of USBO
The General Partner manages USBO, which
is a commodity pool that issues units traded on the NYSE Arca. The chart below shows, as of January 31, 2013, the number of Authorized
Purchases, the total number of baskets created and redeemed since inception and the number of outstanding units for USBO.
# of Authorized
Purchases
Baskets
Purchased
Baskets
Redeemed
Outstanding
Units
USBO
9
49
47
5,500,000
Since the commencement of the offering
of USBO units to the public on June 2, 2010 to January 31, 2013, the simple average daily change in its benchmark futures contract
was 0.097%, while the simple average daily change in the NAV of USBO over the same time period was 0.093%. The average daily difference
was (0.004)% (or (0.4) basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the benchmark
futures contract, the average error in daily tracking by the NAV was (0.883)%, meaning that over this time period USBO's
tracking error was within the plus or minus 10% range established as its benchmark tracking goal.
The table below shows the relationship
between the trading prices of the units and the daily NAV of USBO, since inception through January 31, 2013. The first row shows
the average amount of the variation between USBO's closing market price and NAV, computed on a daily basis since inception,
while the second and third rows depict the maximum daily amount of the end of day premiums and discounts to NAV since inception,
on a percentage basis. The General Partner believes that maximum and minimum end of day premiums and discounts typically occur
because trading in the units continues on the NYSE Arca until 4:00 p.m. New York time while regular trading in the Benchmark Component
Futures Contracts on the Futures Exchanges ceases at 2:30 p.m. New York time and the value of the Benchmark Component Futures Contracts,
for purposes of determining its end of day NAV, can be determined at that time. The information for the Related Public Funds may
be found on page 30.
25
USBO
Average Difference
$
0.01
%
Max Premium %
6.66
%
Max Discount %
(6.52
)%
For more information on the performance
of USBO, see the Performance Tables below.
26
USBO:
Experience in Raising and Investing in USBO through January
31, 2013
Dollar Amount Offered*
$
2,500,000,000
Dollar Amount Raised
$
312,718,853
Organizational and Offering Expenses:**
SEC registration fee
$
139,500
FINRA registration fee
$
75,500
Listing fee
$
5,000
Auditor's fees and expenses
$
2,500
Legal fees and expenses
$
268,670
Printing expenses
$
39,072
Length of USBO offering
Continuous
*
Reflects the offering price per unit set forth on the cover page of the registration statement registering such units filed
with the SEC.
**
These expenses were paid for by the General Partner.
Compensation to the General Partner and Other Compensation:
Expenses paid by USBO through January 31, 2013 in Dollar
Terms:
Expenses
Amount in
Dollar Terms
Amount Paid or Accrued to General Partner
$
784,934
Amount Paid or Accrued in Portfolio Brokerage Commissions
$
74,788
Other Amounts Paid or Accrued*
$
151,020
Total Expenses Paid or Accrued
$
1,010,742
Expenses Waived**
$
(270,604
)
Total Expenses Paid or Accrued Including Expenses Waived
$
1,281,347
*
Includes expenses relating to legal fees, auditing fees, printing expenses, printing expenses, tax reporting fees, prepaid
insurance expenses and miscellaneous expenses and fees and expenses paid to the independent directors of the General Partner.
**
The General Partner, though under no obligation to do so, agreed to pay certain expenses, to the extent that such expenses
exceeded 0.15% (15 basis points) of USBO's NAV, on an annualized basis, through at least June 30, 2013. The General
Partner has no obligation to continue such payment into subsequent periods.
Expenses paid by USBO through January 31, 2013 as a Percentage
of Average Daily Net Assets:
Expenses
Amount As a Percentage of
Average Daily Net Assets
Amount Paid or Accrued to General Partner
0.74% annualized
Amount Paid or Accrued in Portfolio Brokerage Commissions
0.07% annualized
Other Amounts Paid or Accrued
0.14% annualized
Total Expenses Paid or Accrued
0.95% annualized
Expenses Waived
(0.26)% annualized
Total Expenses Paid or Accrued Including Expenses Waived
1.21% annualized
27
USBO:
COMPOSITE PERFORMANCE DATA FOR USBO
Name of Commodity Pool United States Brent
Oil Fund, LP
Type of Commodity Pool Exchange traded
security
Inception of Trading June 2, 2010
Aggregate Subscriptions (from inception
through January 31, 2013) $312,718,853
Total Net Assets as of January 31, 2013
$47,334,729
NAV per Unit as of January 31, 2013 $86.06
Worst Monthly Percentage Draw-down May
2012 (14.59)%
Worst Peak-to-Valley Draw-down Mar 12 -
Jun 12 (19.62)%
Number of Unitholders (as of December 31,
2012): 2,448
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS
Rates of Return*
Month
2010
2011
2012
2013
January
—
6.61
%
3.64
%
5.02
%
February
—
10.42
%
10.78
%
March
—
4.92
%
0.84
%
April
—
7.44
%
(2.36
)%
May
—
(7.17
)%
(14.59
)%
June
1.94
%**
(3.40
)%
(3.61
)%
July
3.83
3.94
%
7.50
%
August
(4.84
)%
(1.55
)%
10.61
%
September
9.79
%
(9.85
)%
(1.55
)%
October
0.61
%
8.51
%
(2.67
)%
November
3.00
%
1.90
%
3.02
%
December
10.09
%
(2.65
)%
0.65
%
Annual Rate of Return
26.16
%
18.17
%
9.94
%
5.02
%***
*
The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
**
Partial from June 2, 2010
***
Through January 31, 2013
Draw-down: Losses experienced over a specified
period. Draw-down is measured on the basis of monthly returns only and does not reflect intra-month figures.
Worst Monthly Percentage Draw-down: The
largest single month loss sustained since inception of trading.
Worst Peak-to-Valley Draw-down: The largest
percentage decline in the NAV per unit over the history of the fund. This need not be a continuous decline, but can be a series
of positive and negative returns where the negative returns are larger than the positive returns. Worst Peak-to-Valley Draw-down
represents the greatest percentage decline from any month-end NAV per unit that occurs without such month-end NAV per unit being
equaled or exceeded as of a subsequent month-end. For example, if the NAV per unit declined by $1 in each of January and February,
increased by $1 in March and declined again by $2 in April, a "peak-to-valley drawdown" analysis conducted as of the
end of April would consider that "drawdown" to be still continuing and to be $3 in amount, whereas if the NAV per unit
had increased by $2 in March, the January-February drawdown would have ended as of the end of February at the $2 level.
28
Prior Performance of the General Partner
and Related Public Funds
The General Partner manages the Related
Public Funds. Each of the Related Public Funds is a commodity pool that issues units traded on the NYSE Arca. The chart below shows,
as of January 31, 2013, the number of Authorized Purchasers, the total number of baskets created and redeemed since inception and
the number of outstanding units for each of the Related Public Funds.
# of Authorized
Purchasers
Baskets
Purchased
Baskets
Redeemed
Outstanding
Units
USDHO
12
10
9
200,000
USOF
19
8,051
7,742
30,900,000
US12OF
10
168
147
2,800,000
USNG
17
12,409
8,279
58,666,476
UGA
13
91
97
1,000,000
US12NG
9
54
16
2,700,000
USSO
13
27
21
400,000
USCI
8
136
30
8,600,000
CPER
6
1
0
100,000
USAG
6
3
2
100,000
USMI
6
3
1
100,000
The ability of each of the Related Public
Funds (other than USBO) to track its benchmark from inception to January 31, 2013 presented below.
Since the commencement of the offering
of USDHO units to the public on April 9, 2008 to January 31, 2013, the simple average daily change in its Benchmark Futures Contract
was (0.005)%, while the simple average daily change in the NAV of USDHO over the same time period was (0.007)%. The average daily
difference was 0.002% (or 0.2 basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the
Benchmark Futures Contract, the average error in daily tracking by the NAV (0.812)%, meaning that over this time period USDHO's
tracking error was within the plus or minus 10% range established as its benchmark tracking goal.
Since the commencement of the offering
of USOF units to the public on April 10, 2006 to January 31, 2013, the simple average daily change in its benchmark oil futures
contract was (0.012)%, while the simple average daily change in the NAV of USOF over the same time period was (0.010)%. The average
daily difference was (0.002)% (or (0.2) basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement
of the benchmark oil futures contract, the average error in daily tracking by the NAV was 0.468%, meaning that over this time period
USOF's tracking error was within the plus or minus 10% range established as its benchmark tracking goal.
Since the commencement of the offering
of US12OF units to the public on December 6, 2007 to January 31, 2013, the simple average daily change in the average price of
its benchmark futures contracts was 0.011%, while the simple average daily change in the NAV of US12OF over the same time period
was 0.010%. The average daily difference was (0.001)% (or (0.1) basis points, where 1 basis point equals 1/100 of 1%). As a percentage
of the daily movement of the average price of the benchmark futures contracts, the average error in daily tracking by the NAV was
(0.596)%, meaning that over this time period US12OF's tracking error was within the plus or minus 10% range established as
its benchmark tracking goal.
Since the commencement of the offering
of USNG units to the public on April 18, 2007 to January 31, 2013, the simple average daily change in its benchmark futures contract
was (0.164)% while the simple average daily change in the NAV of USNG over the same time period was (0.165)%. The average daily
difference was 0.001% (or 0.1 basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the
benchmark futures contract, the average error in daily tracking by the NAV was 0.364%, meaning that over this time period USNG's
tracking error was within the plus or minus 10% range established as its benchmark tracking goal.
Since the commencement of the offering
of UGA units to the public on February 26, 2008 to January 31, 2013, the simple average daily change in its benchmark futures contract
was 0.052%, while the simple average daily change in the NAV of UGA over the same time period was 0.050%. The average daily difference
was (0.002)% (or (0.2) basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the benchmark
futures contract, the average error in daily tracking by the NAV was (0.831)%, meaning that over this time period UGA's tracking
error was within the plus or minus 10% range established as its benchmark tracking goal.
29
Since the commencement of the offering
of US12NG units to the public on November 18, 2009 to January 31, 2013, the simple average daily change in the average price of
its benchmark futures contracts was (0.110)%, while the simple average daily change in the NAV of US12NG over the same time period
was (0.114)%. The average daily difference was 0.004% (or 0.4 basis points, where 1 basis point equals 1/100 of 1%). As a percentage
of the daily movement of the average price of the benchmark futures contracts, the average error in daily tracking by the NAV was
(0.569)%, meaning that over this time period US12NG's tracking error was within the plus or minus 10% range established as
its benchmark tracking goal.
Since the commencement of the offering
of USSO units to the public on September 24, 2009 to January 31, 2013, the inverse of the simple average daily change in its benchmark
futures contract was (0.019)%, while the simple average daily change in the NAV of USSO over the same time period was (0.023)%.
The average daily difference was 0.004% (or 0.4 basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the inverse
of the daily movement of the benchmark futures contract, the average error in daily tracking by the NAV was (1.134)%, meaning that
over this time period USSO's tracking error was within the plus or minus 10% range established as its benchmark tracking
goal.
Since the commencement of the offering
of USCI units to the public on August 10, 2010 to January 31, 2013, the simple average daily change in the Commodity Index was
0.039%, while the simple average daily change in the NAV of USCI over the same time period was 0.034%. The average daily difference
was (0.005)% (or (0.5) basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the Commodity
Index, the average error in daily tracking by the NAV was (2.900)%, meaning that over this time period USCI's tracking error
was within the plus or minus 10% range established as its benchmark tracking goal.
Since the commencement of the offering
of CPER units to the public on November 15, 2011 to January 31, 2013, the simple average daily change in the Copper Index
was 0.022%, while the simple average daily change in the NAV of CPER over the same time period was 0.027%. The average daily difference
was (0.004)% (or (0.4) basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the Copper
Index, the average error in daily tracking by the NAV was (2.015)%.
Since the commencement of the offering
of USAG units to the public on April 13, 2012 to January 31, 2013, the simple average daily change in its index was 0.022%, while
the simple average daily change in the NAV of USAG over the same time period was 0.017%. The average daily difference was (0.005)%
or (0.5) basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the benchmark component
futures contracts, the average error in daily tracking by the NAV was 7.643%.
Since the commencement of the offering
of USMI units to the public on June 19, 2012 to January 31, 2013, the simple average daily change in its index was 0.064%, while
the simple average daily change in the NAV of USMI over the same time period was 0.062%. The average daily difference was (0.002)%
or (0.2) basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the benchmark component
futures contracts, the average error in daily tracking by the NAV was (1.638)%.
The table below shows the relationship
between the trading prices of the units of each of the Related Public Funds and the daily NAV of such fund, since inception through
January 31, 2013. The first row shows the average amount of the variation between the fund's closing market price and NAV,
computed on a daily basis since inception, while the second and third rows depict the maximum daily amount of the end of day premiums
and discounts to NAV since inception, on a percentage basis. The General Partner believes that maximum and minimum end of day premiums
and discounts typically occur because trading in units continues on the NYSE Arca until 4:00 p.m. New York time while regular trading
in the benchmark futures contract on the NYMEX ceases at 2:30 p.m. New York time and the value of the relevant benchmark futures
contract, for purposes of determining its end of day NAV can be determined at that time. One known exception to this conclusion
were the premiums on trading in USNG units that occurred between July 8, 2009 and September 28, 2009, when USNG suspended
the issuance of Creation Baskets as a result of regulatory concerns relating to the size of USNG's positions in the natural
gas futures and cleared swap markets, and there was continued demand for such units and other similar natural gas futures linked
investments in the market.
USOF
USNG
US12OF
UGA
USDHO
US12NG
USCI
USSO
CPER
Average Difference
$
(0.00
)
$
0.39
$
(0.04
)
$
0.00
$
(0.01
)
$
0.01
$
0.05
$
0.00
$
(0.05
)
Max Premium %
3.88
%
2.37
%
4.11
%
6.29
%
5.75
%
6.68
%
2.03
%
3.08
%
4.31
%
Max Discount %
(4.51
)%
(2.42
)%
(9.72
)%
(4.50
)%
(3.85
)%
(6.52
)%
(1.34
)%
(3.41
)%
(5.45
)%
30
USAG
USMI
Average Difference
$
0.05
$
0.09
Max Premium %
4.33
%
4.23
%
Max Discount %
(2.03
)%
(9.28
)%
There are significant differences between investing in the Fund
and the Related Public Funds and investing directly in the futures market. The General Partner's results with USBO and the
Related Public Funds may not be representative of results that may be experienced with a fund directly investing in futures contracts
or other managed funds investing in futures contracts. Moreover, given the different investment objectives of USBO and the Related
Public Funds, the performance of USBO may not be representative of the results that may be experienced by the other Related Public
Funds. For more information on the performance of the Related Public Funds see the Performance Tables below.
Performance of the Related Public Funds
USOF:
COMPOSITE PERFORMANCE DATA FOR USOF
Name of Commodity Pool: United States Oil
Fund, LP
Type of Commodity Pool: Exchange traded
security
Inception of Trading: April 10, 2006
Aggregate Subscriptions (from inception
through January 31, 2013): $35,347,704,404
Total Net Assets as of January 31, 2013:
1,090,631,721
NAV per Unit as of January 31, 2013: $35.30
Worst Monthly Percentage Draw-down: Oct
2008 (31.57)%
Worst Peak-to-Valley Draw-down: June 08 — Feb
09 (75.84)%
Number of Unitholders (as of December 31,
2012): 54,915
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS
Rates of Return*
Month
2007
2008
2009
2010
2011
2012
2013
January
(6.55
)%
(4.00
)%
(14.60
)%
(8.78
)%
(0.62
)%
(0.60
)%
5.63
%
February
5.63
%
11.03
%
(6.55
)%
8.62
%
1.21
%
8.25
%
March
4.61
%
0.63
%
7.23
%
4.61
%
8.78
%
(4.27
)%
April
(4.26
)%
12.38
%
(2.38
)%
2.04
%
6.12
%
1.25
%
May
(4.91
)%
12.80
%
26.69
%
(17.96
)%
(10.43
)%
(17.83
)%
June
9.06
%
9.90
%
4.16
%
0.47
%
(7.65
)%
(2.24
)%
July
10.57
%
(11.72
)%
(2.30
)%
3.57
%
(0.24
)%
3.14
%
August
(4.95
)%
(6.75
)%
(1.98
)%
(9.47
)%
(7.66
)%
9.18
%
September
12.11
%
(12.97
)%
0.25
%
8.97
%
(11.08
)%
(4.82
)%
October
16.98
%
(31.57
)%
8.43
%
0.89
%
17.32
%
(6.93
)%
November
(4.82
)%
(20.65
)%
(0.51
)%
2.53
%
7.76
%
2.45
%
December
8.67
%
(22.16
)%
(0.03
)%
8.01
%
(1.78
)%
2.55
%
Annual Rate of Return
46.17
%
(54.75
)%
14.14
%
(0.49
)%
(2.31
)%
(12.21
%)
5.63
%**
*
The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
**
Through January 31, 2013
For a definition of Draw-down, please see
text below "Composite Performance Data for USBO."
31
USNG:
COMPOSITE PERFORMANCE DATA FOR USNG
Name of Commodity Pool: United States Natural
Gas Fund, LP
Type of Commodity Pool: Exchange traded
security
Inception of Trading: April 18, 2007
Aggregate Subscriptions (from inception
through January 31, 2013): $16,540,421,723
Total Net Assets as of January 31, 2013:
$1,102,092,306
NAV per Unit as of January 31, 2013: $18.79
Worst Monthly Percentage Draw-down: Jul
2008 (32.13)%
Worst Peak-to-Valley Draw-down: Jun 08-Mar
12 (96.81)%
Number of Unitholders (as of December 31,
2012): 139,657
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS
Rates of Return*
Month
2007
2008
2009
2010
2011
2012
2013
January
—
8.87
%
(21.49
)%
(7.65
)%
(0.17
)%
(17.62
)%
(0.42
)%
February
—
15.87
%
(5.47
)%
(6.02
)%
(10.02
)%
(2.49
)%
March
—
6.90
%
(11.81
)%
(21.05
)%
6.68
%
(22.99
)%
April
4.30
%**
6.42
%
(13.92
)%
(.87
)%
5.39
%
2.19
%
May
(0.84
)%
6.53
%
10.37
%
8.19
%
(2.23
)%
3.00
%
June
(15.9
)%
13.29
%
(4.63
)%
5.14
%
(7.00
)%
14.36
%
July
(9.68
)%
(32.13
)%
(8.70
)%
6.43
%
(4.90
)%
13.96
%
August
(13.37
)%
(13.92
)%
(27.14
)%
(22.95
)%
(2.58
)%
(14.16
)%
September
12.28
%
(9.67
)%
26.03
%
(3.13
)%
(11.85
)%
13.32
%
October
12.09
%
(12.34
)%
(13.31
)%
(5.83
)%
.33
%
1.78
%
November
(16.16
)%
(6.31
)%
(11.86
)%
(1.37
)%
(13.40
)%
(6.58
)%
December
.75
%
(14.32
)%
13.91
%
4.53
%
(17.26
)%
(7.09
)%
Annual Rate of Return
(27.64
)%
(35.68
)%
(56.73
)%
(40.42
)%
(46.08
)%
(27.09
)%
(0.42
)%***
*
The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
**
Partial from April 18, 2007
***
Through January 31, 2013
For a definition of Draw-down, please see
text below "Composite Performance Data for USBO."
32
US12OF:
COMPOSITE PERFORMANCE DATA FOR US12OF
Name of Commodity Pool: United States 12
Month Oil Fund, LP
Type of Commodity Pool: Exchange traded
security
Inception of Trading: December 6, 2007
Aggregate Subscriptions (from inception
through January 31, 2013): $494,471,069
Total Net Assets as of January 31, 2013:
$117,089,309
NAV per Unit as of January 31, 2013: $41.82
Worst Monthly Percentage Draw-down: Oct
2008 (29.59)%
Worst Peak-to-Valley Draw-down: June 08 —
Feb 09 (66.97)%
Number of Unitholders (as of December 31,
2012): 4,510
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS
Rates of Return*
Month
2007
2008
2009
2010
2011
2012
2013
January
—
(2.03
)%
(7.11
)%
(8.40
)%
3.38
%
0.92
%
5.05
%
February
—
10.48
%
(4.34
)%
6.73
%
1.89
%
7.71
%
March
—
(0.66
)%
9.22
%
4.16
%
7.30
%
(3.03
)%
April
—
11.87
%
(1.06
)%
6.37
%
5.94
%
0.65
%
May
—
15.47
%
20.40
%
(15.00
)%
(8.91
)%
(16.94
)%
June
—
11.59
%
4.51
%
(1.00
)%
(6.43
)%
(1.04
)%
July
—
(11.39
)%
1.22
%
4.16
%
(0.43
)%
2.59
%
August
—
(6.35
)%
(2.85
)%
(5.92
)%
(8.42
)%
8.54
%
September
—
(13.12
)%
(0.92
)%
7.02
%
(11.50
)%
(4.27
)%
October
—
(29.59
)%
8.48
%
(0.05
)%
15.03
%
(5.72
)%
November
—
(16.17
)%
2.31
%
1.86
%
7.72
%
2.49
%
December
8.46
%**
(12.66
)%
(1.10
)%
9.10
%
(0.75
)%
1.97
%
Annual Rate of Return
8.46
%
(42.39
)%
29.23
%
6.29
%
1.28
%
(8.40
)%
5.05
%***
*
The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
**
Partial from December 6, 2007
***
Through January 31, 2013
For a definition of Draw-down, please see text below "Composite
Performance Data for USBO."
33
UGA:
COMPOSITE PERFORMANCE DATA FOR UGA
Name of Commodity Pool: United States Gasoline
Fund, LP
Type of Commodity Pool: Exchange traded
security
Inception of Trading: February 26, 2008
Aggregate Subscriptions (from inception
through January 31, 2013): $343,968,568
Total Net Assets as of January 31, 2013:
$63,717,067
NAV per Unit as of January 31, 2013: $63.72
Worst Monthly Percentage Draw-down: Oct
2008 (38.48)%
Worst Peak-to-Valley Draw-down: June 08 —
Dec 08 (69.02)%
Number of Unitholders (as of December 31,
2012): 5,490
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS
Rates of Return*
Month
2008
2009
2010
2011
2012
2013
January
—
16.23
%
(7.47
)%
2.19
%
8.37
%
9.13
%
February
(0.56
)%**
0.26
%
7.33
%
9.52
%
6.83
%
March
(2.39
)%
2.59
%
5.42
%
7.16
%
1.59
%
April
10.94
%
2.07
%
3.15
%
10.45
%
(3.45
)%
May
15.60
%
30.41
%
(15.54
)%
(9.21
)%
(11.05
)%
June
4.79
%
1.65
%
1.93
%
(0.99
)%
(0.61
)%
July
(12.79
)%
6.24
%
2.95
%
4.67
%
9.60
%
August
(3.88
)%
(3.71
)%
(10.42
)%
(1.53
)%
13.02
%
September
(9.36
)%
(3.38
)%
9.45
%
(11.02
)%
0.96
%
October
(38.48
)%
10.96
%
2.19
%
3.90
%
(9.42
)%
November
(21.35
)%
1.00
%
8.19
%
(2.05
)%
4.82
%
December
(15.72
)%
0.55
%
11.33
%
3.49
%
1.27
%
Annual Rate of Return
(59.58
)%
80.16
%
15.52
%
15.00
%
20.72
%
9.13
%***
*
The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
**
Partial from February 26, 2008
***
Through January 31, 2013
For a definition of Draw-down, please see
text below "Composite Performance Data for USBO."
34
USDHO:
COMPOSITE PERFORMANCE DATA FOR USDHO
Name of Commodity Pool: United States Diesel-Heating
Oil Fund, LP
Type of Commodity Pool: Exchange traded
security
Inception of Trading: April 9, 2008
Aggregate Subscriptions (from inception
through January 31, 2013): $33,857,235
Total Net Assets as of January 31, 2013:
$6,956,825
NAV per Unit as of January 31, 2013: $34.78
Worst Monthly Percentage Draw-down: Oct
2008 (28.63)%
Worst Peak-to-Valley Draw-down: June 08 — Feb
09 (69.17)%
Number of Unitholders (as of December 31,
2012): 666
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS
Rates of Return*
Month
2008
2009
2010
2011
2012
2013
January
—
0.05
(10.17
)%
7.58
%
4.73
%
2.99
%
February
—
(11.34
)%
5.78
%
6.98
%
5.62
%
March
—
6.73
%
6.42
%
5.45
%
(1.46
)%
April
2.84
%**
(3.85
)%
5.13
%
4.75
%
0.17
%
May
15.93
%
23.13
%
(14.14
)%
(7.17
)%
(15.28
)%
June
5.91
%
4.55
%
(0.40
)%
(4.01
)%
0.03
%
July
(12.18
)%
0.39
%
2.48
%
4.68
%
4.98
%
August
(8.41
)%
(2.71
)%
(5.88
)%
(0.85
)%
11.24
%
September
(9.77
)%
(0.48
)%
12.75
%
(10.18
)%
(0.68
)%
October
(28.63
)%
7.60
%
(2.20
)%
10.10
%
(2.76
)%
November
(18.38
)%
0.19
%
2.97
%
(1.36
)%
(0.38
)%
December
(17.80
)%
2.23
%
8.75
%
(4.12
)%
(0.94
)%
Annual Rate of Return
(56.12
)%
25.52
%
8.28
%
9.96
%
2.99
%
2.99
%***
*
The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
**
Partial from April 9, 2008
***
Through January 31, 2013
For a definition of Draw-down, please see
text below "Composite Performance Data for USBO."
35
US12NG
COMPOSITE PERFORMANCE DATA FOR US12NG
Name of Commodity Pool: United States 12
Month Natural Gas Fund, LP
Type of Commodity Pool: Exchange traded
security
Inception of Trading: November 18, 2009
Aggregate Subscriptions (from inception
through January 31, 2013): $118,127,314
Total Net Assets as of January 31, 2013:
$46,628,788
NAV per Unit as of January 31, 2013: $17.27
Worst Monthly Percentage Draw-down: Mar
2010 (15.47)%
Worst Peak-to-Valley Draw-down: Dec 09-April
12 (69.56)%
Number of Unitholders (as of December 31,
2012): 3,546
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS
Rates of Return*
Month
2009
2010
2011
2012
2013
January
(5.93
)%
(0.68
)%
(12.16
)%
0.23
%
February
(5.18
)%
(6.49
)%
(0.32
)%
March
(15.47
)%
5.32
%
(11.85
)%
April
0.07
%
3.53
%
0.00
%
May
3.11
%
(2.23
)%
0.06
%
June
1.27
%
(6.11
)%
6.11
%
July
(0.05
)%
(5.28
)%
6.62
%
August
(13.53
)%
(1.43
)%
(9.39
)%
September
(6.23
)%
(8.12
)%
11.26
%
October
(1.78
)%
(1.72
)%
1.55
%
November
(0.02
)%**
(0.92
)%
(10.27
)%
(5.22
)%
December
7.56
%
4.88
%
(13.92
)%
(4.17
)%
Annual Rate of Return
7.54
%
(34.83
)%
(39.47
)%
(18.76
)%
0.23
%***
*
The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
**
Partial from November 18, 2009
***            Through January 31, 2013
For a definition of Draw-down, please see
text below "Composite Performance Data for USBO."
36
USAG:
COMPOSITE PERFORMANCE DATA FOR USAG
Name of Commodity Pool: United States Agricultural
Index Fund
Type of Commodity Pool: Exchange traded
security
Inception of Trading: April 13, 2012
Aggregate Subscriptions (from inception
through January 31, 2013): $2,500,000
Total Net Assets as of January 31, 2013:
$2,567,382
NAV per Unit as of January 31, 2013: $25.67
Worst Monthly Percentage Draw-down: May
12 (4.88)%
Worst Peak-to-Valley Draw-down: Aug 12-
Dec 12 (9.27%)
Number of Unitholders (as of December 31,
2012): 87
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS
Rates of Return*
Month
2012
2013
January
0.43
%
February
—
March
—
April
(1.68
)%**
—
May
(4.88
)%
—
June
9.20
%
—
July
10.07
%
—
August
0.25
%
—
September
(2.80
)%
—
October
(1.97
)%
—
November
(1.38
)%
—
December
(3.44
)%
—
Annual Rate of Return
0.12
%
0.43
%***
*
The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
**
Partial from April 13, 2012
***
Through January 31, 2013
For a definition of Draw-down, please see
text below "Composite Performance Data for USBO."
37
CPER:
COMPOSITE PERFORMANCE DATA FOR CPER
Name of Commodity Pool: United States Copper
Index Fund
Type of Commodity Pool: Exchange traded
security
Inception of Trading: November 15, 2011
Aggregate Subscriptions (from inception
through January 31, 2013): $2,500,000
Total Net Assets as of January 31, 2013:
$2,601,090
NAV per Unit as of January 31, 2013: $26.01
Worst Monthly Percentage Draw-down: May
12 (11.91)%
Worst Peak-to-Valley Draw-down: Feb 12-May
12 (13.60)%
Number of Unitholders (as of December 31,
2012): 161
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS
Rates of Return*
Month
2011
2012
2013
January
—
10.13
%
2.28
%
February
—
2.00
%
—
March
—
(1.49
%)
—
April
—
(0.44
%)
—
May
—
(11.91
%)
—
June
—
3.49
%
—
July
—
(2.12
%)
—
August
—
0.79
%
—
September
—
8.45
%
—
October
—
(6.43
%)
—
November
1.80
%**
3.29
%
—
December
(3.85
)%
0.04
%
—
Annual Rate of Return
(2.12
)%
3.92
%
2.28
%***
*
The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
**
Partial from November 15, 2011.
***
Through January 31, 2013
For a definition of Draw-down, please see
the text below "Composite Performance Data for USBO."
38
USSO:
COMPOSITE PERFORMANCE DATA FOR USSO
Name of Commodity Pool: United States Short
Oil Fund, LP
Type of Commodity Pool: Exchange traded
security
Inception of Trading: September 24, 2009
Aggregate Subscriptions (from inception
through January 31, 2013): $79,889,217
Total Net Assets as of January 31, 2013:
$14,318,799
NAV per Unit as of January 31, 2013: $35.80
Worst Monthly Percentage Draw-down: Oct
11 (16.00)%
Worst Peak-to-Valley Draw-down: Aug 10 — Feb 12 (33.97)%
Number of Unitholders (as of December 31,
2012): 636
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS
Rates of Return*
Month
2009
2010
2011
2012
2013
January
9.05
%
(0.64
)%
0.11
%
(5.52
)%
February
(8.94
)%
(1.94
)
(8.09
)%
March
(4.92
)%
(8.89
)
3.88
%
April
(2.50
)%
(6.27
)
(1.62
)%
May
20.18
%
9.28
%
20.85
%
June
(1.42
)%
7.21
%
0.61
%
July
(4.17
)%
(0.30
)%
(3.97
)%
August
9.61
%
6.24
%
(8.92
)%
September
(2.90
)%**
(8.75
)%
10.71
%
4.59
%
October
(8.65
)%
(1.59
)%
(16.00
)%
6.56
%
November
(0.25
)%
(3.18
)%
(7.78
)%
(3.25
)%
December
(0.57
)%
(7.74
)%
1.03
%
(2.82
)%
Annual Rate of Return
(12.02
)%
(8.12
)%
(10.54
)%
4.78
%
(5.52
)%***
*
The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
**
Partial from September 24, 2009
***
Through January 31, 2013
For a definition of Draw-down, please see
text below "Composite Performance Data for USBO."
39
USMI:
COMPOSITE PERFORMANCE DATA FOR USMI
Name of Commodity Pool: United States Metals
Index Fund
Type of Commodity Pool: Exchange traded
security
Inception of Trading: November 15, 2011
Aggregate Subscriptions (from inception
through January 31, 2013): $4,909,773
Total Net Assets as of January 31, 2013:
$2,730,343
NAV per Unit as of January 31, 2013: $27.30
Worst Monthly Percentage Draw-down: Oct
12 (7.74)%
Worst Peak-to-Valley Draw-down: Sep 12-
Oct 12 (7.74%)
Number of Unitholders (as of December 31,
2012): 18
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS
Rates of Return*
Month
2012
2013
January
3.14
%
February
—
March
—
April
—
May
—
June
(1.20
)%**
—
July
(1.46
)%
—
August
4.23
%
—
September
8.99
%
—
October
(7.74
)%
—
November
5.17
%
—
December
(1.34
)%
—
Annual Rate of Return
8.75
%
3.14
%***
*
The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
**
Partial from June 12, 2012
***
Through January 31, 2013
For a definition of Draw-down, please see
the text below "Composite Performance Data for USBO."
40
USCI Performance:
COMPOSITE PERFORMANCE DATA FOR USCI
Name of Commodity Pool: United States Commodity Index Fund
Type of Commodity Pool: Exchange traded
security
Inception of Trading: August 10, 2010
Aggregate Subscriptions (from inception
through January 31, 2013): $435,625,033
Total Net Assets as of January 31, 2013:
$516,178,758
NAV per Unit as of January 31, 2013: $60.02
Worst Monthly Percentage Draw-down: Sept
11 (11.69)%
Worst Peak-to-Valley Draw-down: April 11
— May 12 (21.60)%
Number of Unitholders (as of December 31,
2012): 15,335
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS
Rates of Return*
Month
2010
2011
2012
2013
January
—
4.01
%
4.45
%
2.69
%
February
—
5.27
%
4.01
%
March
—
(0.14
)%
(3.49
)%
April
—
1.89
%
(0.62
)%
May
—
(5.77
)%
(7.76
)%
June
—
(5.03
)%
2.35
%
July
—
3.52
%
6.52
%
August
(0.02
)%**
(0.33
)%
1.34
%
September
8.36
%
(11.69
)%
(1.18
)%
October
6.31
%
5.08
%
(3.44
)%
November
0.76
%
(1.16
)%
0.89
%
December
10.93
%
(3.72
)%
(2.21
)%
Annual Rate of Return
28.74
%
(9.17
)%
(0.03
)%
2.69
%***
*
The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month,
subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
**
Partial from August 10, 2010
***
Through January 31, 2013
For a definition
of Draw-down, please see the text below "Composite Performance Data for USBO."
41
Other Related Commodity Trading and Investment Management
Experience
Until December 31, 2009, Ameristock
Corporation was an affiliate of the General Partner. Ameristock Corporation is a California-based registered investment advisor
registered under the Investment Advisors Act of 1940, as amended, that has sponsored and provided portfolio management services
to mutual funds from 1995 until January 2013. Ameristock Corporation was the investment adviser to the Ameristock Mutual Fund,
Inc., a mutual fund registered under the Investment Company Act of 1940 focused on large cap U.S. equities that, as of December
31, 2012, had $126,879,540 in assets. On January 11, 2013, the Ameristock Mutual Fund, Inc. merged with and into the Drexel Hamilton
Centre American Equity Fund, a series of Drexel Hamilton Mutual Funds. Drexel Hamilton Mutual Funds is not affiliated with Ameristock
Corporation, the Ameristock Mutual Fund, Inc. or the General Partner.
Ameristock Corporation was also the investment
advisor to the Ameristock ETF Trust, an open-end management investment company registered under the 1940 Act that consisted of
five separate investment portfolios, each of which sought investment results, before fees and expenses, that corresponded generally
to the price and yield performance of a particular U.S. Treasury securities index owned and compiled by Ryan Holdings LLC and Ryan
ALM, Inc. The Ameristock ETF Trust has liquidated each of its investment portfolios and has wound up its affairs.
How Does USBO Operate?
The net assets of USBO consist primarily
of investments in futures contracts for Brent crude oil, but may also consist of investment contracts for other types of crude
oil, natural gas, gasoline, heating oil and other petroleum-based fuels that are traded on the ICE Futures Exchange, NYMEX, or
other U.S. and foreign exchanges (such futures contracts are collectively referred to herein as "Futures Contracts"),
and to a lesser extent, in order to comply with regulatory requirements or in view of market conditions, other crude oil-related
investments such as cash-settled options on Futures Contracts, forward contracts for crude oil, cleared swap contracts and non-exchange
traded ("over-the-counter") transactions that are based on the price of crude oil and other petroleum-based fuels,
Futures Contracts and indices based on the foregoing (collectively, "Other Crude Oil-Related Investments"). For convenience
and unless otherwise specified, Futures Contracts and Other Crude Oil-Related Investments collectively are referred to as "Crude
Oil Interests" in this prospectus. USBO invests substantially the entire amount of its assets in Crude Oil Interests while
supporting such investments by holding the amounts of its margin, collateral and other requirements relating to these obligations
in Treasuries, cash and cash equivalents. The daily holdings of USBO are available on USBO's website at www.unitedstatesbrentoilfund.com.
USBO invests in Crude Oil Interests to
the fullest extent possible without being leveraged or unable to satisfy its current or potential margin or collateral obligations
with respect to its investments in Futures Contracts and Other Crude Oil-Related Investments. The primary focus of the General
Partner is the investment in Futures Contracts and the management of USBO's investments in short-term obligations of the
United States of two years or less ("Treasuries"), cash and/or cash equivalents for margining purposes and as collateral.
The investment objective of USBO is for
the daily changes in percentage terms of its units' NAV to reflect the daily changes in percentage terms of the spot price
of Brent crude oil as measured by the daily changes in the price of the futures contract on Brent crude oil as traded on the ICE
Futures Exchange that is the near month contract to expire, except when the near month contract is within two weeks of expiration,
in which case the futures contract will be the next month contract to expire (the "Benchmark Futures Contract"), less
USBO's expenses. It is not the intent of USBO to be operated in a fashion such that its NAV will equal, in dollar terms,
the spot price of crude oil or any particular futures contract based on crude oil. USBO seeks to achieve its investment objective
by investing in a combination of Futures Contracts and Other Crude Oil-Related Investments such that the daily changes in its NAV,
measured in percentage terms, will closely track the daily changes in the price of the Benchmark Futures Contract, also measured
in percentage terms. It is not the intent of USBO to be operated in a fashion such that its NAV will reflect the percentage change
of the price of any particular futures contract as measured over a time period greater than one day. The General Partner believes
that it is not practical to manage the portfolio to achieve such an investment goal when investing in listed crude oil Futures
Contracts and other Crude Oil-Related Investments. USBO may invest in interests other than the Benchmark Futures Contract to comply
with accountability levels and position limits. For a detailed discussion of accountability levels and position limits, see "What
are Futures Contracts?".
As a specific benchmark, the General Partner
endeavors to place USBO's trades in Futures Contracts and Other Crude Oil-Related Investments and otherwise manage USBO's
investments so that "A" will be within plus/minus 10 percent of "B", where:
•
A is the average daily change in USBO's NAV for any period of 30 successive valuation days,
i.e.
, any NYSE Arca
trading day as of which USBO calculates its NAV; and
•
B is the average daily change in the price of the Benchmark Futures Contract over the same period.
42
The General Partner believes that market
arbitrage opportunities cause daily changes in USBO's unit price on the NYSE Arca to closely track daily changes in USBO's
NAV per unit. The General Partner further believes that the daily changes in USBO's NAV in percentage terms closely track
the daily changes in percentage terms in the Benchmark Futures Contract, less USBO's expenses.
43
The following two graphs demonstrate the
correlation between the daily changes in the NAV of USBO and the daily changes in the Benchmark Futures Contract both since the
initial public offering of USBO's units on June 2, 2010 through December 31, 2012 and during the last thirty valuation
days ended December 31, 2012.
* PAST PERFORMANCE IS NOT NECESSARILY
INDICATIVE OF FUTURE RESULTS
* PAST PERFORMANCE IS NOT NECESSARILY
INDICATIVE OF FUTURE RESULTS
44
An investment in the units provides a means
for diversifying an investor's portfolio or hedging exposure to changes in Brent crude oil prices. An investment in the units
allows both retail and institutional investors to easily gain this exposure to the Brent crude oil market in a transparent, cost-effective
manner.
The expected correlation of the price of
USBO's units, USBO's NAV and the price of the Benchmark Futures Contract is illustrated in the following diagram:
The General Partner employs a "neutral"
investment strategy intended to track the changes in the price of the Benchmark Futures Contract regardless of whether the price
goes up or goes down. USBO's "neutral" investment strategy is designed to permit investors generally to purchase
and sell USBO's units for the purpose of investing indirectly in Brent crude oil in a cost-effective manner, and/or to permit
participants in the crude oil or other industries to hedge the risk of losses in their Brent crude oil-related transactions. Accordingly,
depending on the investment objective of an individual investor, the risks generally associated with taking positions in Brent
crude oil and/or the risks involved in hedging may exist. In addition, an investment in USBO involves the risk that the changes
in the price of USBO's units will not accurately track the changes in the price of the Benchmark Futures Contract, and that
changes in the Benchmark Futures Contract will not closely correlate with changes in the spot price of Brent crude oil.
45
Term Structure of Brent Crude Oil Futures
Prices and the Impact on Total Returns.
Several factors determine the total return from investing in a futures contract
position. One factor that impacts the total return that will result from investing in near month futures contracts and
"rolling" those contracts forward each month is the price relationship between the current near month contract and
the next month contract. For example, if the price of the near month contract is higher than the next month contract (a situation
referred to as "backwardation" in the futures market), then absent any other change there is a tendency for the price
of a next month contract to rise in value as it becomes the near month contract and approaches expiration. Conversely, if
the price of a near month contract is lower than the next month contract (a situation referred to as "contango" in
the futures market), then absent any other change there is a tendency for the price of a next month contract to decline in value
as it becomes the near month contract and approaches expiration.
As an example, assume that the price of
Brent crude oil for immediate delivery (the "spot" price), was $50 per barrel, and the value of a position in the near
month futures contract was also $50. Over time, the price of the barrel of Brent crude oil will fluctuate based on a
number of market factors, including demand for oil relative to its supply. The value of the near month contract will likewise
fluctuate in reaction to a number of market factors. If investors seek to maintain their position in a near month contract
and not take delivery of the oil, every month they must sell their current near month contract as it approaches expiration and
invest in the next month contract.
If the futures market is in backwardation,
e.g.
, when the expected price of Brent crude oil in the future would be less, the investor would be buying a next month
contract for a lower price than the current near month contract. Using the $50 per barrel price above to represent the front month
price, the price of the next month contract could be $49 per barrel, that is, 2% cheaper than the front month contract. Hypothetically,
and assuming no other changes to either prevailing Brent crude oil prices or the price relationship between the spot price, the
near month contract and the next month contract (and ignoring the impact of commission costs and the income earned on cash and/or
cash equivalents), the value of the $49 next month contract would rise as it approaches expiration and becomes the new near month
contract with a price of $50. In this example, the value of an investment in the second month contract would tend to rise faster
than the spot price of Brent crude oil, or fall slower. As a result, it would be possible in this hypothetical example for
the spot price of Brent crude oil to have risen 10% after some period of time, while the value of the investment in the second
month futures contract would have risen 12%, assuming backwardation is large enough or enough time has elapsed. Similarly,
the spot price of Brent crude oil could have fallen 10% while the value of an investment in the futures contract could have fallen
only 8%. Over time, if backwardation remained constant, the difference would continue to increase.
If the futures market is in contango, the
investor would be buying a next month contract for a higher price than the current near month contract. Using again the $50
per barrel price above to represent the front month price, the price of the next month contract could be $51 per barrel, that is,
2% more expensive than the front month contract. Hypothetically, and assuming no other changes to either prevailing Brent crude
oil prices or the price relationship between the spot price, the near month contract and the next month contract (and ignoring
the impact of commission costs and the income earned on cash and/or cash equivalents), the value of the next month contract would
fall as it approaches expiration and becomes the new near month contract with a price of $50. In this example, it would mean
that the value of an investment in the second month would tend to rise slower than the spot price of Brent crude oil, or fall faster. As
a result, it would be possible in this hypothetical example for the spot price of Brent crude oil to have risen 10% after
some period of time, while the value of the investment in the second month futures contract will have risen only 8%, assuming contango
is large enough or enough time has elapsed. Similarly, the spot price of Brent crude oil could have fallen 10% while the value
of an investment in the second month futures contract could have fallen 12%. Over time, if contango remained constant, the
difference would continue to increase.
46
The chart below compares the price of the
near month contract to the average price of the near 12-month contracts over the last 10 years (2002-2011). When the price of the
near month contract is higher than the average price of the near 12 month contracts, the market would be described as being in
backwardation. When the price of the near month contract is lower than the average price of the near 12 month contracts, the market
would be described as being in contango. Although the prices of the near month contract and the average price of the near 12 month
contracts do tend to move up or down together, it can be seen that at times the near month prices are clearly higher than the average
price of the near 12 month contracts (backwardation), and other times they are below the average price of the near 12 month contracts
(contango).
PAST PERFORMANCE IS NOT NECESSARILY
INDICATIVE OF FUTURE RESULTS
47
An alternative way to view the same data
is to subtract from the dollar price of the near month contract the average dollar price of the near 12-months contracts for Brent
crude oil. If the resulting number is a positive number, then the near month price is higher than the average price of the
near 12-months contracts and the market could be described as being in backwardation. If the resulting number is a negative
number, then the near month price is lower than the average price of the near 12-months contracts and the market could be described
as being in contango. The chart below shows the results from subtracting the average dollar price of the near 12-month contracts
from the near month price for the 10 year period between 2002 and 2012.
PAST PERFORMANCE IS NOT NECESSARILY
INDICATIVE OF FUTURE RESULTS
Historically, the crude oil futures markets
have experienced periods of contango and backwardation, with backwardation being in place more often than contango. During 2006
and the first half of 2007, these markets experienced contango. However, starting early in the third quarter of 2007, the crude
oil futures market moved into backwardation. The crude oil markets remained in backwardation until late in the second quarter of
2008 when they moved into contango. The crude oil markets remained in contango until late in the third quarter of 2008, when the
markets moved into backwardation. Early in the fourth quarter of 2008, the crude oil market moved back into contango and remained
in contango for the balance of 2008. Throughout 2009, the crude oil market remained in contango. During parts of January and February
2009, the level of contango was unusually steep. Crude oil inventories, which reached historic levels in January and February 2009
and which appeared to be the primary cause of the steep level of contango, began to drop in March 2009 and continued to drop for
the balance of 2009 and the beginning of 2010. The crude oil futures market remained in contango through 2010 and 2011. The Brent
crude oil futures market experiences the same effects of contango and backwardation as the United States crude oil futures market,
but the Brent crude oil futures market has not historically experienced the same level of steepness in contango and backwardation
as the United States crude oil futures market. As of December 31, 2012, U.S. crude oil markets remained mildly in contango while
the market for Brent crude oil was mildly in backwardation.
Periods of contango or backwardation do
not materially impact USBO's investment objective of having the percentage changes in its per unit NAV track the daily percentage
changes in the price of the Benchmark Futures Contract since the impact of backwardation and contango tend to equally impact the
daily percentage changes in price of both USBO's units and the Benchmark Futures Contract. It is impossible to predict with
any degree of certainty whether backwardation or contango will occur in the future. It is likely that both conditions will occur
during different periods.
48
Brent Crude Oil Market. During the year
ended December 31, 2012, Brent crude oil prices were impacted by several factors. On the consumption side, demand increased inside
and outside the United States as global economic growth, including emerging economies such as China and India, showed signs of
slowing economic growth. Europe in particular showed signs of weakness as the ongoing financial and banking crisis raised concerns
during the year ended December 31, 2012. On the supply side, efforts to reduce production by OPEC to more closely match global
consumption were partially successful. In the summer of 2011, production had been disrupted by political unrest in the Middle East,
particularly Libya, which reduced global supply by approximately 1.8 million barrels per day. A partial resolution of the Libyan
situation has reduced concerns regarding the global supply of Brent crude oil. However, continuing concerns about the political
standoff with Iran have left the market subject to bouts of heightened volatility as OPEC's ability to replace Iranian oil
currently subject to embargo is not unlimited. Brent crude oil prices finished 2012 approximately 3.47% higher than at the beginning
of the year, as the global economy continues to adjust to periods of slow recovery and economic growth. the General Partner believes
that should the global economic situation cease to improve, or decline, there is a meaningful possibility that crude oil prices
could further retreat from their current levels, while any military actions involving Iran would likely have the opposite effect.
Brent Crude Oil Price Movements in Comparison
to Other Energy Commodities and Investment Categories. the General Partner believes that investors frequently measure the degree
to which prices or total returns of one investment or asset class move up or down in value in concert with another investment or
asset class. Statistically, such a measure is usually done by measuring the correlation of the price movements of the two different
investments or asset classes over some period of time. The correlation is scaled between 1 and -1, where 1 indicates that the two
investment options move up or down in price or value together, known as "positive correlation," and -1 indicates that
they move in completely opposite directions, known as "negative correlation." A correlation of 0 would mean that the
movements of the two are neither positively nor negatively correlated, known as "non-correlation." That is, the investment
options sometimes move up and down together and other times move in opposite directions.
For the ten year time period between 2003
and 2012, the table below compares the monthly movements of Brent crude oil prices versus the monthly movements of the prices of
several other energy commodities, such as natural gas, diesel-heating oil, and unleaded gasoline, as well as several major non-commodity
investment asset classes, such as large cap U.S. equities, U.S. government bonds and global equities. It can be seen that over
this particular time period, the movement of Brent crude oil on a monthly basis was not strongly correlated, positively or negatively,
with the movements of large cap U.S. equities or U.S. government bonds. However, movements in Brent crude oil had a strong positive
correlation to movements in unleaded gasoline and U.S. West Texas Intermediate (WTI) crude oil. Brent crude oil was also positively,
yet mildly correlated with global equities and diesel-heating oil.
December 31, 2003-2012 Correlation Matrix
Large  Cap
U.S.
Equities
(S&P 500)
U.S.
Gov't.
Bonds
(EFFAS
U.S.
Gov't.
Bond
Index)
Global
Equities
(FTSE
World
Index)
Crude Oil
(WTI)
Unleaded
Gasoline
Diesel-Heating
Oil
Brent
Oil
Large Cap U.S. Equities (S&P 500)
1.000
(0.275
)
0.965
0.346
0.227
0.290
0.339
U.S. Gov't. Bonds (EFFAS U.S. Gov't. Bond Index)
1.000
(0.260
)
(0.217
)
(0.233
)
(0.162
)
(0.227
)
Global Equities (FTSE World Index)
1.000
0.423
0.278
0.363
0.421
Crude Oil (WTI)
1.000
0.734
0.831
0.950
Unleaded Gasoline
1.000
0.721
0.775
Diesel-Heating oil
1.000
0.342
Brent Oil
1.000
Source: Bloomberg, NYMEX
PAST PERFORMANCE IS NOT NECESSARILY
INDICATIVE OF FUTURE RESULTS
The table below covers a more recent, but
much shorter, range of dates than the above table.  Over the one-year period ended December 31, 2012, Brent crude oil
had a positive correlation with West Texas Intermediate Crude Oil and unleaded gasoline.  The correlation between Brent crude
oil and both large cap U.S. equities and global equities, which had been essentially non-correlated over the ten-year period ended
December 31, 2012, displayed results that indicated that they had a strong positive correlation over this shorter time period.
Finally, the results showed that Brent crude oil, Heating Oil and U.S. government bonds, which had essentially been non-correlated
for the ten-year period ended December 31, 2012, were negatively correlated over this more recent time period.
49
Year Ended December 31, 2012 Correlation Matrix
Large  Cap
U.S.
Equities
(S&P 500)
U.S.
Gov't.
Bonds
(EFFAS
U.S.
Gov't.
Bond
Index)
Global
Equities
(FTSE
World
Index)
Crude Oil
(WTI)
Unleaded
Gasoline
Diesel-Heating
Oil
Brent
Oil
Large Cap U.S. Equities (S&P 500)
1.000
(0.652
0.943
0.639
0.735
0.733
0.691
U.S. Gov't. Bonds (EFFAS U.S. Gov't. Bond Index)
1.000
(0.652
)
(0.350
)
(0.361
)
(0.411
)
(0.421
)
Global Equities (FTSE World Index)
1.000
0.689
0.567
0.763
0.717
Crude Oil
1.000
0.515
0.890
0.909
Unleaded Gasoline
1.000
0.598
0.622
Diesel-Heating oil
1.000
(0.227
)
Brent Oil
1.000
Source: Bloomberg, NYMEX
PAST PERFORMANCE IS NOT NECESSARILY
INDICATIVE OF FUTURE RESULTS
Investors are cautioned that the historical
price relationships between Brent crude oil and various other energy commodities, as well as other investment asset classes, as
measured by correlation may not be reliable predictors of future price movements and correlation results. The results pictured
above would have been different if a different range of dates had been selected. the General Partner believes that Brent crude
oil has historically not demonstrated a strong correlation with equities or bonds over long periods of time.  However, the
General Partner also believes that in the future it is possible that Brent crude oil could have long term correlation results that
indicate prices of Brent crude oil more closely track the movements of equities or bonds.  In addition, the General Partner
believes that, when measured over time periods shorter than ten years, there will always be some periods where the correlation
of Brent crude oil to equities and bonds will be either more strongly positively correlated or more strongly negatively correlated
than the long term historical results suggest.
The correlations between Brent
crude oil, WTI Crude Oil, diesel-heating oil and gasoline are relevant because the General Partner endeavors to invest USBO's
assets in Futures Contracts and Other Crude Oil-Related Investments so that daily changes in percentage terms in USBO's per
unit NAV correlate as closely as possible with daily changes in percentage terms in the price of the Benchmark Futures Contract. 
If certain other fuel-based commodity futures contracts do not closely correlate with the Futures Contract, then their use
could lead to greater tracking error.  As noted above, the General Partner also believes that the changes in percentage terms
in the price of the Benchmark Futures Contract will closely correlate with changes in percentage terms in the spot price of Brent
crude oil.
What Is USBO's Investment Strategy?
In managing USBO's assets the General
Partner does not use a technical trading system that issues buy and sell orders. The General Partner instead employs a quantitative
methodology whereby each time a Creation Basket is sold, the General Partner purchases Crude Oil Interests, such as the Benchmark
Futures Contract, that have an aggregate market value that approximates the amount of Treasuries and/or cash received upon the
issuance of the Creation Basket.
As an example, assume that a Creation Basket
is sold by USBO, and that USBO's closing NAV per unit is $50. In that case, USBO would receive $2,500,000 in proceeds from
the sale of the Creation Basket ($50.00 NAV per unit multiplied by 50,000 units, and excluding the Creation Basket fee). If one
were to assume further that the General Partner wants to invest the entire proceeds from the Creation Basket in the Benchmark Futures
Contract and that the market value of the Benchmark Futures Contract is $105,000, USBO would be unable to buy the exact number
of Benchmark Futures Contracts with an aggregate market value equal to $2,500,000. Instead, USBO would be able to purchase 23 Benchmark
Futures Contracts with an aggregate market value of $2,415,000. Assuming a margin requirement equal to 10% of the value of the
Benchmark Futures Contract, USBO would be required to deposit $241,500 in Treasuries and cash and/or cash equivalents with the
futures commission merchant through which the Benchmark Futures Contracts were purchased. The remainder of the proceeds from the
sale of the Creation Basket, $2,258,500, would remain invested in cash, cash equivalents and Treasuries as determined by the General
Partner from time to time based on factors such as potential calls for margin or anticipated redemptions.
50
The specific Futures Contracts purchased
depend on various factors, including a judgment by the General Partner as to the appropriate diversification of USBO's investments
in Futures Contracts with respect to the month of expiration, and the prevailing price volatility of particular contracts. While
the General Partner has made significant investments in ICE Futures Exchange Futures Contracts, for various reasons, including
the ability to enter into the precise amount of exposure to the crude oil market, position limits or other regulatory requirements
limiting USBO's holdings, and market conditions, it may invest in Futures Contracts traded on other exchanges or in Other
Crude Oil-Related Investments. To the extent that USBO invests in Other Crude-Oil Related Investments, it would prioritize investments
in contracts and instruments that are economically equivalent to the Benchmark Futures Contract, including cleared swaps that satisfy
such criteria, and then, to a lesser extent, it would invest in other types of cleared swaps and other contracts, instruments and
swaps, including swaps in the over-the-counter market. If USBO is required by law or regulation, or by one of its regulators, including
a Futures Exchange, to reduce its position in the Benchmark Futures Contracts to the applicable position limit or to a specified
accountability level or if market conditions dictate it would be more appropriate to invest in Other Crude Oil-Related Investments,
a substantial portion of USBO's assets could be invested in accordance with such priority in Other Crude Oil-Related Investments
that are intended to replicate the return on the Benchmark Futures Contract. As USBO's assets reach higher levels, it is
more likely to exceed position limits, accountability levels or other regulatory limits and, as a result, it is more likely that
it will invest in accordance with such priority in Other Crude Oil-Related Investments at such higher levels. In addition, market
conditions that the General Partner currently anticipates could cause USBO to invest in Other Crude Oil-Related Investments include
those allowing USBO to obtain greater liquidity or to execute transactions with more favorable pricing. But see "What are
the Risk Factors Involved with an Investment in USBO? — Risks Associated With Investing Directly or Indirectly
in Crude Oil — Regulation of the commodity interests and energy markets is extensive and constantly changing; future
regulatory developments are impossible to predict but may significantly and adversely affect USBO" for a discussion of the
potential impact of the Dodd-Frank Act on USBO's ability to invest in OTC transactions and cleared swaps.
The General Partner may not be able to
fully invest USBO's assets in Benchmark Futures Contracts having an aggregate notional amount exactly equal to USBO's
NAV. For example, as standardized contracts, the Benchmark Futures Contracts are for a specified amount of a particular commodity,
and USBO's NAV and the proceeds from the sale of a Creation Basket are unlikely to be an exact multiple of the amounts of
those contracts. As a result, in such circumstances, USBO may be better able to achieve the exact amount of exposure to changes
in price of the Benchmark Futures Contracts through the use of Other Crude Oil-Related Investments, such as over-the-counter contracts
that have better correlation with changes in price of the Benchmark Futures Contract.
USBO anticipates that to the extent it
invests in Futures Contracts other than crude oil contracts (such as futures contracts natural gas, gasoline, heating oil and other
petroleum-based fuels) and Other Crude Oil-Related Investments, it will enter into various non-exchange-traded derivative contracts
to hedge the short-term price movements of such Futures Contracts and Other Crude Oil-Related Investments against the current Benchmark
Futures Contract.
The General Partner does not anticipate
letting USBO's Futures Contracts expire and taking delivery of the underlying commodity. Instead, the General Partner closes
existing positions,
e.g.,
when it changes the Benchmark Futures Contract or it otherwise determines it would be appropriate
to do so and reinvests the proceeds in new Futures Contracts or Other Crude Oil-Related Investments. Positions may also be closed
out to meet orders for Redemption Baskets and in such case proceeds for such baskets will not be reinvested.
By remaining invested as fully as possible
in Futures Contracts or Other Crude Oil-Related Investments, the General Partner believes that the changes in percentage terms
in USBO's NAV will continue to closely track the changes in percentage terms in the prices of the Benchmark Futures Contract.
The General Partner believes that certain arbitrage opportunities result in the price of the units traded on the NYSE Arca closely
tracking the NAV of USBO. Additionally, crude oil futures contracts traded on the ICE Futures have closely tracked the spot price
of Brent crude oil. Based on these expected interrelationships, the General Partner believes that the daily changes in the price
of USBO's units traded on the NYSE Arca have closely tracked and will continue to closely track the daily changes in the
spot price of Brent crude oil.
What are Futures Contracts?
Futures Contracts are agreements between
two parties. One party agrees to buy a commodity such as Brent crude oil from the other party at a later date at a price and quantity
agreed-upon when the contract is made. Futures Contracts are traded on futures exchanges, including the ICE Futures. For example,
the Benchmark Futures Contract is traded on the ICE Futures in units of 1,000 barrels. The Brent crude Futures Contracts traded
on the ICE Futures are priced by an electronic, screen-based system that determines the price by matching electronically offers
to purchase and sell. Additional risks of investing in Futures Contracts are discussed below. Additional risks of investing in
Futures Contracts are included in "What are the Risk Factors Involved with an Investment in USBO?"
51
Impact of Accountability Levels, Position
Limits and Price Fluctuation Limits
. Futures contracts include typical and significant characteristics. Most significantly,
the CFTC and U.S. designated contract markets such as the NYMEX have established accountability levels and position limits on the
maximum net long or net short futures contracts in commodity interests that any person or group of persons under common trading
control (other than as a hedge, which an investment by USBO is not) may hold, own or control. The net position is the difference
between an individual or firm's open long contracts and open short contracts in any one commodity. In addition, most U.S.
based futures exchanges, such as the NYMEX, limit the daily price fluctuation for futures contracts. Currently, the ICE
Futures imposes position and accountability limits that are similar to those imposed by U.S. based futures exchanges and also limits
the maximum daily price fluctuation, while some other non-U.S. futures exchanges have not adopted such limits.
The accountability levels for the Benchmark
Futures Contract and other Futures Contracts traded on U.S.-based futures exchanges, such as the NYMEX, are not a fixed ceiling,
but rather a threshold above which the NYMEX may exercise greater scrutiny and control over an investor's positions. The
current accountability level for net long or short positions at any one time in the NYMEX Contract for light, sweet crude oil Futures
Contracts is 20,000 net future contracts. In addition, the ICE Futures maintains the same accountability levels, position
limits and monitoring authority for its light, sweet crude oil contracts as the NYMEX. If USBO and the Related Public Funds exceed
this accountability level for investments in the futures contract for light, sweet crude oil, the NYMEX and ICE Futures will monitor
such exposure and may ask for further information on their activities, including the total size of all positions, investment and
trading strategy, and the extent of liquidity resources of USBO and the Related Public Funds. If deemed necessary by the NYMEX
and/or ICE Futures, USBO could be ordered to reduce its aggregate position back to the accountability level. In contrast, the position
limits for the ICE Futures maintain that when 100 lots or more are traded, the activity must be reported to the exchange on a daily
basis. ICE Futures also maintains that an Expiration Limit of 6,000 lots, long or short, will apply for the five business days
up to and including the expiration date. There are no specific position accountability levels or limits, nor are there are any
maximum daily price fluctuation limits for the ICE Brent Crude Oil (physically settled) futures contract. USBO did not exceed accountability
levels of the NYMEX or ICE Futures during the year ended December 31, 2012. As of December 31, 2012, USBO held 406 Futures
Contracts for Brent crude oil traded on the ICE Futures.
Position limits differ from accountability
levels in that they represent fixed limits on the maximum number of futures contracts that any person may hold and cannot allow
such limits to be exceeded without express CFTC authority to do so. In addition to accountability levels and position limits that
may apply at any time, the ICE Futures Exchange and the NYMEX impose position limits on contracts held in the last few days of
trading in the near month contract to expire. It is unlikely that USBO will run up against such position limits because USBO's
investment strategy is to close out its positions and "roll" from the near month contract to expire to the next month
contract during a four-day period beginning two weeks from expiration of the contract. For the year ended December 31, 2012, USBO
did not exceed any position limits imposed by NYMEX and ICE Futures.
In late 2011, the CFTC adopted rules
that impose new position limits on Referenced Contracts (as defined below) involving 28 energy, metals and agricultural commodities
(the "Position Limit Rules"). The Position Limit Rules were scheduled to become effective on October 12, 2012. However,
on September 28, 2012, the United States District Court for the District of Columbia vacated these regulations on the basis of
ambiguities in the provisions of the CEA (as modified by the Dodd-Frank Act) upon which the regulations were based. In its September
28, 2012 decision, the court remanded the Position Limit Rules to the CFTC with instructions to use its expertise and experience
to resolve the ambiguities in the statute. On November 15, 2012, the CFTC indicated that it will move forward with an appeal of
the District Court's decision to vacate the Position Limit Rules. At this time, it is not possible to predict how the CFTC's
appeal could affect USBO, but it may be substantial and adverse. Furthermore, until such time as the appeal is resolved or, if
applicable revisions to the Position Limit Rules are proposed and adopted, the regulatory architecture in effect prior to the enactment
of the Position Limit Rules will govern transactions in commodities and related derivatives (collectively, "Referenced Contracts").
Under that system, the CFTC enforces federal limits on speculation in agricultural products (e.g., corn, wheat and soy), while
futures exchanges enforce position limits and accountability levels for agricultural and certain energy products (e.g., oil and
natural gas). As a result, USBO may be limited with respect to the size of its investments in any commodities subject to these
limits. Finally, subject to certain narrow exceptions, the vacated Position Limit Rules would have required the aggregation, for
purposes of the position limits, of all positions in the 28 Referenced Contracts held by a single entity and its affiliates, regardless
of whether such position existed on U.S. futures exchanges, non-U.S. futures exchanges, in cleared swaps or in over-the-counter
swaps. The CFTC is presently considering new aggregation rules, under a rulemaking proposal that is distinct from the Position
Limit Rules. At this time, it is unclear how any modified aggregation rules may affect USBO, but it may be substantial and adverse.
By way of example, the aggregation rules in combination with any potential revised Position Limit Rules may negatively impact the
ability of USBO to meet its investment objectives through limits that may inhibit the General Partner's ability to sell additional
Creation Baskets of USBO.
52
Examples of the position and price limits
currently imposed are as follows:
Futures Contract
Position Accountability
Levels and Limits
Maximum Daily Price Fluctuation
ICE Brent Crude Futures (physically settled)
There are no position limits.
There is no maximum daily price fluctuation limit.
NYMEX Brent Crude (financially settled)
Any one month: 20,000 net futures/all months: 20,000 net futures, but not to exceed 2,000 contracts in the last three days of trading in the spot month.
There is no maximum daily price fluctuation limit.
NYMEX Light, Sweet Crude Oil (physically settled)
Any one month: 10,000 net futures/all months: 20,000 net futures, but not to exceed 3,000 contracts in the last three days of trading in the spot month.
$10.00 per barrel ($10,000 per contract) for all months. If any contract is traded, bid, or offered at the limit for five minutes, trading is halted for five minutes. When trading resumes, the limit is expanded by $10.00 per barrel in either direction. If another halt were triggered, the market would continue to be expanded by $10.00 per barrel in either direction after each successive five-minute trading halt. There will be no maximum price fluctuation limits during any one trading session.
NYMEX Light, Sweet Crude Oil (financially settled)
Any one month: 20,000 net futures/all months: 20,000 net futures, but not to exceed 2,000 contracts in the last three days of trading in the spot month.
There is no maximum daily price fluctuation limit.
ICE West Texas Intermediate ("WTI") Crude Futures (financially settled)
Any one month: 10,000 net futures/all months: 20,000 net futures, but not to exceed 3,000 contracts in the last three days of trading in the spot month.
There is no maximum daily price fluctuation limit.
NYMEX Heating Oil (physically settled)
Any one month: 5,000 net futures/all months: 7,000 net futures, but not to exceed 1,000 contracts in the last three days of trading in the spot month.
$0.25 per gallon ($10,500 per contract) for all months. If any contract is traded, bid, or offered at the limit for five minutes, trading is halted for five minutes. When trading resumes, the limit is expanded by $0.25 per gallon in either direction. If another halt were triggered, the market would continue to be expanded by $0.25 per gallon in either direction after each successive five-minute trading halt. There will be no maximum price fluctuation limits during any one trading session.
53
Futures Contract
Position Accountability
Levels and Limits
Maximum Daily Price Fluctuation
NYMEX Gasoline (physically settled)
Any one month: 5,000 net futures/all months: 7,000 net futures, but not to exceed 1,000 contracts in the last three days of trading in the spot month.
$0.25 per gallon ($10,500 per contract) for all months. If any contract is traded, bid, or offered at the limit for five minutes, trading is halted for five minutes. When trading resumes, the limit is expanded by $0.25 per gallon in either direction. If another halt were triggered, the market would continue to be expanded by $0.25 per gallon in either direction after each successive five-minute trading halt. There will be no maximum price fluctuation limits during any one trading session.
NYMEX Natural Gas (physically settled
Any one month: 6,000 net futures/all months: 12,000 net futures, but not to exceed 1,000 contracts in the last three days of trading in the spot month.
$3.00 per million British thermal units ("mmBtu") ($30,000 per contract) for all months. If any contract is traded, bid, or offered at the limit for five minutes, trading is halted for five minutes. When trading resumes, the limit is expanded by $3.00 per mmBtu in either direction. If another halt were triggered, the market would continue to be expanded by $3.00 per mmBtu in either direction after each successive five-minute trading halt. There will be no maximum price fluctuation limits during any one trading session.
Price Volatility.
The price volatility
of Futures Contracts generally has been historically greater than that for traditional securities such as stocks and bonds. Price
volatility often is greater day-to-day as opposed to intra-day. Futures Contracts tend to be more volatile than stocks and bonds
because price movements for crude oil are more currently and directly influenced by economic factors for which current data is
available and are traded by crude oil futures traders throughout the day. Because USBO invests a significant portion of its assets
in Futures Contracts, the assets of USBO, and therefore the prices of USBO units, may be subject to greater volatility than traditional
securities.
Marking-to-Market Futures Positions.
Futures Contracts are marked to market at the end of each trading day and the margin required with respect to such contracts is
adjusted accordingly. This process of marking-to-market is designed to prevent losses from accumulating in any futures account.
Therefore, if USBO's futures positions have declined in value, USBO may be required to post "variation margin"
to cover this decline. Alternatively, if USBO futures positions have increased in value, this increase will be credited to USBO's
account.
USBO anticipates that to the extent it
invests in Futures Contracts other than Brent crude oil contracts (such as futures contracts for WTI light, sweet crude oil) and
Other Crude Oil-Related Investments, it will enter into various non-exchange-traded derivative contracts to hedge the short-term
price movements of such Futures Contracts and Other Crude Oil-Related Investments against the current Benchmark Futures Contract.
What is the Crude Oil Market and the Petroleum-Based Fuel
Market?
Brent Crude Oil
. Crude oil
is the world's most actively traded commodity. The futures contracts for Brent crude oil that are traded on the ICE Futures
Exchange are the world's second most liquid forum for crude oil trading, as well as the world's second largest volume
futures contract trading on a physical commodity. Due to the liquidity and price transparency of light, sweet crude oil futures
contracts, they are used as a principal international pricing benchmark. The futures contracts for Brent crude oil trade on the
ICE Futures Exchange in units of 1,000 U.S. barrels and, if not closed out before maturity, will result in delivery of oil to Sullom
Voe, an oil terminal located in the Shetland Island near Scotland, which is also accessible to the international spot markets by
tanker.
The price of crude oil is established by
the supply and demand conditions in the global market overall, and more particularly, in the main refining centers of Singapore,
Northwest Europe, and the U.S. Gulf Coast. Demand for petroleum products by consumers, as well as agricultural, manufacturing and
transportation industries, determines demand for crude oil by refiners. Since the precursors of product demand are linked to economic
activity, crude oil demand will tend to reflect economic conditions. However, other factors such as weather also influence product
and crude oil demand. The price of Brent crude oil has historically been volatile.
Heating Oil.
Heating oil, also known
as No. 2 fuel oil, accounts for approximately 25% of the yield of a barrel of crude oil, the second largest "cut"
from oil after gasoline. The heating oil futures contract listed and traded on the NYMEX, trades in units of 42,000 gallons (1,000
barrels) and is based on delivery in the New York harbor, the principal cash market-trading center. The price of heating oil has
historically been volatile.
54
Gasoline.
Gasoline is the largest
single volume refined product sold in the U.S. and accounts for almost half of national oil consumption. The gasoline futures contract
listed and traded on the NYMEX, trades in units of 42,000 gallons (1,000 barrels) and is based on delivery at petroleum products
terminals in the New York harbor, the major East Coast trading center for imports and domestic shipments from refineries in the
New York harbor area or from the Gulf Coast refining centers. The price of gasoline has historically been volatile.
Natural Gas.
Natural gas accounts
for almost a quarter of U.S. energy consumption. The natural gas futures contract listed and traded on the NYMEX trades in units
of 10,000 mmBtu and is based on delivery at the Henry Hub in Louisiana, the nexus of 16 intra- and interstate natural gas pipeline
systems that draw supplies from the region's prolific gas deposits. The pipelines serve markets throughout the U.S. East
Coast, the Gulf Coast, the Midwest, and up to the Canadian border. The price of natural gas has historically been volatile.
As noted, the General Partner also believes
that the changes in the price of the Benchmark Futures Contract will closely correlate with changes in the spot price of Brent
crude oil. Assuming that the units' value tracks the Benchmark Futures Contract as intended, the stated objective of USBO
for the units' NAV to reflect the performance of the spot price of Brent crude oil would be met if the trend reflected over
the past ten years were to continue. However, there is no guarantee that such trend will continue.
USBO may invest in certain other fuel-based
commodity futures contracts. The chart below illustrates the historical correlation between the Benchmark Futures Contract and
certain other fuel-based commodity futures contracts in which USBO may invest over the last ten years. These correlations are relevant
because the General Partner endeavors to invest USBO's assets in Futures Contracts and Other Crude Oil-Related Investments
so that daily changes in USBO's NAV correlate as closely as possible with daily changes in the price of the Benchmark Futures
Contract. If USBO invests in other fuel-based commodity futures contracts and such contracts do not closely correlate with the
Futures Contracts then their use could lead to greater tracking error.
The degree of correlation varies both among
the different commodities and also over time. As such, the use of any energy related commodity to hedge a different energy commodity
can only produce, at best, an imperfect hedge.
Why Does USBO Purchase and Sell Futures Contracts?
USBO's investment objective is for
the daily changes in percentage terms of its units' NAV to reflect the daily changes in percentage terms of the Benchmark
Futures Contract, less USBO's expenses. USBO invests primarily in Futures Contracts. USBO seeks to have its aggregate NAV
approximate at all times the aggregate market value of the Futures Contracts and Other Crude Oil-Related Investments it holds.
In connection with investing in Futures
Contracts and Other Crude Oil-Related Investments, USBO holds Treasuries, cash and/or cash equivalents that serve as segregated
assets supporting USBO's positions in Futures Contracts and Other Crude Oil-Related Investments. For example, the purchase
of a Futures Contract with a stated value of $10 million would not require USBO to pay $10 million upon entering into the contract;
rather, only a margin deposit, generally of 5% to 30% of the stated value of the Futures Contract, would be required. To secure
its Futures Contract obligations, USBO would deposit the required margin with the futures commission merchant and would separately
hold, through its Custodian, Treasuries, cash and/or cash equivalents in an amount equal to the balance of the current market value
of the contract, which at the contract's inception would be $10 million minus the amount of the margin deposit, or $9 million
(assuming a 10% margin).
As a result of the foregoing, typically
5% to 30% of USBO's assets are held as margin in segregated accounts with a futures commission merchant. In addition to the
Treasuries or cash it posts with the futures commission merchant for the Futures Contracts it owns, USBO holds, through the Custodian,
Treasuries, cash and/or cash equivalents that can be posted as margin or as collateral to support its over-the-counter contracts.
USBO earns income from the Treasuries and/or cash equivalents that it purchases, and on the cash it holds through the Custodian.
USBO anticipates that the earned income will increase the NAV and limited partners' capital contribution accounts. USBO reinvests
the earned income, holds it in cash, or uses it to pay its expenses. If USBO reinvests the earned income, it makes investments
that are consistent with its investment objective.
55
What is the Flow of Units?
What are the Trading Policies of USBO?
Liquidity
USBO invests only in Futures Contracts
and Other Crude Oil-Related Investments that, in the opinion of the General Partner, are traded in sufficient volume to permit
the ready taking and liquidation of positions in these financial interests.
Spot Commodities
While certain of the Futures Contracts
traded on the ICE Futures can be physically settled, USBO does not intend to take or make physical delivery. USBO may from time
to time trade in Other Crude Oil-Related Investments, including contracts based on the spot price of Brent crude oil.
Leverage
The General Partner endeavors to have the
value of USBO's Treasuries, cash and/or cash equivalents, whether held by USBO or posted as margin or collateral, at all
times approximate the aggregate market value of its obligations under USBO's Futures Contracts and Other Crude Oil-Related
Investments. Commodity pools' trading positions in futures contracts or other related investments are typically required
to be secured by the deposit of margin funds that represent only a small percentage of a futures contract's (or other commodity
interest's) entire market value. While the General Partner does not intend to leverage USBO's assets, it is not prohibited
from doing so under the LP Agreement.
Borrowings
Borrowings are not used by USBO unless
USBO is required to borrow money in the event of physical delivery, if USBO trades in cash commodities, or for short-term needs
created by unexpected redemptions.
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Over-the-Counter Derivatives (Including Spreads and Straddles)
In addition to Futures Contracts, there
are also a number of listed options on the Futures Contracts on the principal futures exchanges. These contracts offer investors
and hedgers another set of financial vehicles to use in managing exposure to the Brent crude oil market. Consequently, USBO may
purchase options on Brent crude oil Futures Contracts on these exchanges in pursuing its investment objective.
In addition to the Futures Contracts and
options on the Futures Contracts, there also exists an active non-exchange-traded market in derivatives tied to crude oil. These
derivatives transactions (also known as over-the-counter contracts) are usually entered into between two parties in private contracts. Unlike
most of the exchange-traded Futures Contracts or exchange-traded options on the Futures Contracts, each party to such contract
bears the credit risk of the other party, i.e., the risk that the other party may not be able to perform its obligations under
its contract.
To reduce the credit risk that arises in
connection with such contracts, USBO will generally enter into an agreement with each counterparty based on the Master Agreement
published by the International Swaps and Derivatives Association, Inc. ("ISDA") that provides for the netting of its
overall exposure to its counterparty.
The General Partner assesses or reviews,
as appropriate, the creditworthiness of each potential or existing counterparty to an over-the-counter contract pursuant to guidelines
approved by the General Partner's Board.
USBO may employ spreads or straddles in
its trading to mitigate the differences in its investment portfolio and its goal of tracking the price of the Benchmark Futures
Contract. USBO would use a spread when it chooses to take simultaneous long and short positions in futures written on the
same underlying asset, but with different delivery months.
USBO has not employed any hedging methods
since all of its investments have been made over an exchange. Therefore, USBO has not been exposed to counterparty risk.
Pyramiding
USBO has not and will not employ the technique,
commonly known as pyramiding, in which the speculator uses unrealized profits on existing positions as variation margin for the
purchase or sale of additional positions in the same or another commodity interest.
Who are the Service Providers?
BBH&Co. is the registrar and transfer
agent for the units. BBH&Co. is also the Custodian for USBO. In this capacity, BBH&Co. holds USBO's Treasuries, cash
and/or cash equivalents pursuant to a custodial agreement. In addition, in its capacity as Administrator for USBO, performs certain
administrative and accounting services for USBO and prepares certain SEC, NFA and CFTC reports on behalf of USBO. The General Partner
pays BBH&Co.'s fees for these services.
BBH&Co.'s principal business
address is 50 Milk Street, Boston, MA 02109-3661. BBH&Co., a private bank founded in 1818, is neither a publicly held company
nor insured by the Federal Deposit Insurance Corporation. BBH&Co. is authorized to conduct a commercial banking business in
accordance with the provisions of Article IV of the New York State Banking Law, New York Banking Law §§160–181,
and is subject to regulation, supervision, and examination by the New York State Department of Financial Services. BBH&Co.
is also licensed to conduct a commercial banking business by the Commonwealths of Massachusetts and Pennsylvania and is subject
to supervision and examination by the banking supervisors of those states.
USBO also employs ALPS Distributors, Inc.
as the Marketing Agent. the General Partner pays the Marketing Agent an annual fee. In no event may the aggregate compensation
paid to the Marketing Agent and any affiliate of the General Partner for distribution-related services in connection with the offering
of units exceed ten percent (10%) of the gross proceeds of the offering.
ALPS's principal business address
is 1290 Broadway, Suite 1100, Denver, CO 80203. ALPS is the marketing agent for USBO. ALPS is a broker-dealer registered with the
Financial Industry Regulatory Authority ("FINRA") and a member of the Securities Investor Protection Corporation.
UBS Securities LLC ("UBS Securities")
is USBO's FCM. USBO and UBS Securities have entered into an Institutional Futures Client Account Agreement. This agreement
requires UBS Securities to provide services to USBO in connection with the purchase and sale of Crude Oil Interests that may be
purchased or sold by or through UBS Securities for USBO's account. USBO pays UBS Securities' commissions for executing
and clearing trades on behalf of USBO.
UBS Securities' principal business
address is 677 Washington Blvd, Stamford, CT 06901. UBS Securities is a futures clearing broker for USBO. UBS Securities is registered
in the U.S. with FINRA as a broker-dealer and with the CFTC as a FCM. UBS Securities is a member of various U.S. futures and securities
exchanges.
57
UBS is and has been a defendant in numerous
legal proceedings, including actions brought by regulatory organizations and government agencies, relating to its securities and
commodities business that allege various violations of federal and state securities laws. UBS AG, the ultimate parent company to
UBS Securities, files annual reports and quarterly reports to the SEC in which it discloses material information about matters
involving but not limited to, UBS Securities, including information about any material litigation or regulatory investigations
(https://www.ubs.com/global/en/about_ubs/investor_relations/quarterly_reporting/2011.html). Actions with respect to UBS Securities'
FCM business are publicly available on the website of the National Futures Association (http://www.nfa.futures.org/).
On June 27, 2007, the Securities Division
of the Secretary of the Commonwealth of Massachusetts ("Massachusetts Securities Division") filed an administrative
complaint (the "Complaint") and notice of adjudicatory proceeding against UBS Securities, captioned In The Matter of
UBS Securities, LLC, Docket No. E-2007-0049, which alleged that UBS Securities violated the Massachusetts Uniform Securities Act
(the "Act") and related regulations by providing the advisers for certain hedge funds with gifts and gratuities in
the form of below market office rents, personal loans with below market interest rates, event tickets, and other perks, in order
to induce those hedge fund advisers to increase or retain their level of prime brokerage fees paid to UBS Securities. On November
22, 2010, UBS Securities entered into a Consent Order and Settlement with the Massachusetts Securities Division, pursuant to which
UBS Securities agreed to implementing a disclosure policy and retaining an independent consultant to monitor the policy. UBS Securities
also paid a $100,000 fine.
In the summer of 2008, the Massachusetts
Securities Division, Texas State Securities Board, and the New York Attorney General ("NYAG") all brought actions against
UBS and UBS Financial Services, Inc. ("UBS Financial"), alleging violations of various state law anti-fraud provisions
in connection with the marketing and sale of auction rate securities.
On August 8, 2008, UBS Securities and UBS
Financial Services reached agreements with the SEC, the NYAG, the Massachusetts Securities Division and other state regulatory
agencies represented by the North American Securities Administrators Association ("NASAA") to restore liquidity to
all remaining client's holdings of auction rate securities by June 30, 2012. On October 2, 2008, UBS Securities and UBS Financial
entered into a final consent agreement with the Massachusetts Securities Division settling all allegations in the Massachusetts
Securities Division's administrative proceeding against UBS Securities and UBS Financial with regards to the auction rate
securities matter. On December 11, 2008, UBS Securities and UBS Financial executed an Assurance of Discontinuance in the auction
rate securities settlement with the NYAG. On the same day, UBS Securities and UBS Financial finalized settlements with the SEC.
UBS Securities and UBS Financial paid penalties of $75 million to NYAG and an additional $75 million to be apportioned among the
participating NASAA states. In March 2010, UBS Securities and UBS Financial and NASAA agreed on final settlement terms, pursuant
to which, UBS Securities and UBS Financial agreed to provide client liquidity up to an additional $200 million.
On August 14, 2008 the New Hampshire Bureau
of Securities Regulation (the "Bureau") filed an administrative action against UBS Securities relating to a student
loan issuer, the New Hampshire Higher Education Loan Corp. ("NHHELCO"). The complaint alleged fraudulent and unethical
conduct in violation of New Hampshire state statutes. On April 14, 2010, UBS entered into a Consent Order resolving all of the
Bureau's claims. UBS Securities paid $750,000 to the Bureau for all costs associated with the Bureau's investigation.
UBS Securities entered a separate civil settlement with NHHELCO and provided a total financial benefit of $20 million to NHHELCO.
On April 29, 2010, the CFTC issued an order
with respect to UBS Securities and levied a fine of $200,000. The Order stated that on February 6, 2009, UBS Securities'
employee broker aided and abetted UBS Securities' customer's concealment of material facts from the NYMEX in violation
of Section 9(a)(4) of the CEA, 7 U.S.C. § 13(a)(4) (2006). Pursuant to NYMEX Rules, a block trade must be reported to NYMEX
"within five minutes of the time of execution" consistent with the requirements of NYMEX Rule 6.21C(A)(6). Although
the block trade in question was executed earlier in the day, UBS Securities' employee broker aided and abetted its customer's
concealment of facts when, in response to the customer's request to delay reporting the trade until after the close of trading,
UBS Securities' employee did not report the trade until after the close. Because the employee broker undertook his actions
within the scope of his employment, pursuant to Section 2(a)(1)(B) of the CEA, 7 U.S.C. § 2(a)(1)(B) (2006), and Commission
Regulation 1.2, 17 C.F.R. § 1.2 (2009), UBS Securities is liable for the employee broker's aiding and abetting of its
customer's violation of Section 9(a)(4) of the CEA. The fine has been paid and the matter is now closed.
UBS Securities will act only as clearing
broker for USBO and as such will be paid commissions for executing and clearing trades on behalf of USBO. UBS Securities has not
passed upon the adequacy or accuracy of this annual report on Form 10-K. UBS Securities neither will act in any supervisory capacity
with respect to the General Partner nor participate in the management of the General Partner or USBO.
UBS Securities is not affiliated with USBO
or the General Partner. Therefore, USBO does not believe that USBO has any conflicts of interest with UBS Securities or their trading
principals arising from their acting as USBO's FCM.
58
Currently, the General Partner does not
employ commodity trading advisors for trading of USBO contracts. The General Partner currently does, however, employ a trading
advisor for USCI, CPER, USAG and USMI, SummerHaven Investment Management, LLC ("SummerHaven"). If, in the future, the
General Partner does employ commodity trading advisors for USBO, it will choose each advisor based on arm's-length negotiations
and will consider the advisor's experience, fees and reputation.
59
Fees of USBO
Fees and Compensation Arrangements with the General Partner
and Non-Affiliated Service Providers*
Service
        Provider
Compensation
        Paid by General Partner
Brown Brothers Harriman & Co., Custodian and Administrator
Minimum amount of $75,000 annually* for its custody, fund accounting and fund administration services rendered to all funds, as well as a $20,000 annual fee for its transfer agency services. In addition, an asset-based charge of (a) 0.06% for the first $500 million of USBO and the Related Public Funds' combined net assets, (b) 0.0465% for USBO and the Related Public Funds' combined net assets greater than $500 million but less than $1 billion, and (c) 0.035% once USBO and the Related Public Funds' combined net assets exceed $1 billion.**
ALPS Distributors, Inc., Marketing Agent
0.06% on assets up to $3 billion and 0.04% on assets in excess of $3 billion.
*
The General Partner pays this compensation.
**
The annual minimum amount will not apply if the asset-based charge for all accounts in the aggregate exceeds $75,000. The General
Partner also will pay transaction charge fees to BBH&Co., ranging from $7.00 to $15.00 per transaction for the funds.
Compensation to the General Partner
Assets
Management Fee
All assets
0.75% of NAV
Fees are calculated on a daily basis (accrued
at 1/365 of the applicable percentage of NAV on that day) and paid on a monthly basis. NAV is calculated by taking the current
market value of USBO's total assets, subtracting any liabilities and dividing that number by the total number of outstanding
units.
Fees and Compensation Arrangements between USBO and Non-Affiliated
Service Providers***
Service Provider
Compensation Paid by USBO
UBS Securities LLC, Futures Commission Merchant
Approximately $3.50 per buy or sell
Non-Affiliated Brokers
Approximately 0.08% of assets
***
USBO pays this compensation.
Form of Units
Registered Form
. Units are
issued in registered form in accordance with the LP Agreement. The Administrator has been appointed registrar and transfer agent
for the purpose of transferring units in certificated form. The Administrator keeps a record of all limited partners and holders
of the units in certificated form in the registry (the "Register"). The General Partner recognizes transfers of units
in certificated form only if done in accordance with the LP Agreement. The beneficial interests in such units are held in book-entry
form through participants and/or accountholders in DTC.
Book Entry
. Individual certificates
are not issued for the units. Instead, units are represented by one or more global certificates, which are deposited by the Administrator
with DTC and registered in the name of Cede & Co., as nominee for DTC. The global certificates evidence all of the units
outstanding at any time. Unitholders are limited to (1) participants in DTC such as banks, brokers, dealers and trust companies
("DTC Participants"), (2) those who maintain, either directly or indirectly, a custodial relationship with a DTC
Participant ("Indirect Participants"), and (3) those who hold interests in the units through DTC Participants
or Indirect Participants, in each case who satisfy the requirements for transfers of units. DTC Participants acting on behalf of
investors holding units through such participants' accounts in DTC will follow the delivery practice applicable to securities
eligible for DTC's Same-Day Funds Settlement System. Units are credited to DTC Participants' securities accounts following
confirmation of receipt of payment.
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DTC.
DTC has advised us as follows.
It is a limited purpose trust company organized under the laws of the State of New York and is a member of the Federal Reserve
System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code and a "clearing agency"
registered pursuant to the provisions of Section 17A of the Exchange Act. DTC holds securities for DTC Participants and facilitates
the clearance and settlement of transactions between DTC Participants through electronic book-entry changes in accounts of DTC
Participants.
Transfer of Units
Transfers of Units Only Through DTC.
The units are only transferable through the book-entry system of DTC. Limited partners who are not DTC Participants may transfer
their units through DTC by instructing the DTC Participant holding their units (or by instructing the Indirect Participant or other
entity through which their units are held) to transfer the units. Transfers are made in accordance with standard securities industry
practice.
Transfers of interests in units with DTC
are made in accordance with the usual rules and operating procedures of DTC and the nature of the transfer. DTC has established
procedures to facilitate transfers among the participants and/or accountholders of DTC. Because DTC can only act on behalf of DTC
Participants, who in turn act on behalf of Indirect Participants, the ability of a person or entity having an interest in a global
certificate to pledge such interest to persons or entities that do not participate in DTC, or otherwise take actions in respect
of such interest, may be affected by the lack of a certificate or other definitive document representing such interest.
DTC has advised USBO that it will take
any action permitted to be taken by a unitholder (including, without limitation, the presentation of a global certificate for exchange)
only at the direction of one or more DTC Participants in whose account with DTC interests in global certificates are credited and
only in respect of such portion of the aggregate principal amount of the global certificate as to which such DTC Participant or
Participants has or have given such direction.
Transfer/Application Requirements.
All purchasers of USBO's units, and potentially any purchasers of units in the future, who wish to become limited partners
or other record holders and receive cash distributions, if any, or have certain other rights, must deliver an executed transfer
application in which the purchaser or transferee must certify that, among other things, he, she or it agrees to be bound by USBO's
LP Agreement and is eligible to purchase USBO's securities. Each purchaser of units must execute a transfer application and
certification. The obligation to provide the form of transfer application is imposed on the seller of units or, if a purchase of
units is made through an exchange, the form may be obtained directly through USBO. Further, the General Partner may request each
record holder to furnish certain information, including that record holder's nationality, citizenship or other related status.
A record holder is a unitholder that is, or has applied to be, a limited partner. An investor who is not a U.S. resident may not
be eligible to become a record holder or one of USBO's limited partners if that investor's ownership would subject
USBO to the risk of cancellation or forfeiture of any of USBO's assets under any federal, state or local law or regulation.
If the record holder fails to furnish the information or if the General Partner determines, on the basis of the information furnished
by the holder in response to the request, that such holder is not qualified to become one of USBO's limited partners, the
General Partner may be substituted as a holder for the record holder, who will then be treated as a non-citizen assignee, and USBO
will have the right to redeem those securities held by the record holder.
A transferee's broker, agent or nominee
may complete, execute and deliver a transfer application and certification. USBO may, at its discretion, treat the nominee holder
of a unit as the absolute owner. In that case, the beneficial holder's rights are limited solely to those that it has against
the nominee holder as a result of any agreement between the beneficial owner and the nominee holder.
A person purchasing USBO's existing
units, who does not execute a transfer application and certify that the purchaser is eligible to purchase those securities acquires
no rights in those securities other than the right to resell those securities. Whether or not a transfer application is received
or the consent of the General Partner obtained, USBO's units are securities and are transferable according to the laws governing
transfers of securities.
Any transfer of units will not be recorded
by the transfer agent or recognized by the General Partner unless a completed transfer application is delivered to the General
Partner or the Administrator. When acquiring units, the transferee of such units that completes a transfer application will:
•
be an assignee until admitted as a substituted limited partner upon the consent and sole discretion of the General Partner
and the recording of the assignment on the books and records of the partnership;
•
automatically request admission as a substituted limited partner;
•
agree to be bound by the terms and conditions of, and execute, USBO's LP Agreement;
•
represent that such transferee has the capacity and authority to enter into USBO's LP Agreement;
•
grant powers of attorney to the General Partner as general partner of USBO and any liquidator of USBO; and
•
make the consents and waivers contained in USBO's LP Agreement.
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An assignee will become a limited partner
in respect of the transferred units upon the consent of the General Partner as general partner of USBO and the recordation of the
name of the assignee on USBO's books and records. Such consent may be withheld in the sole discretion of the General Partner.
If consent of the General Partner is withheld,
such transferee shall be an assignee. An assignee shall have an interest in the partnership equivalent to that of a limited partner
with respect to allocations and distributions, including, without limitation, liquidating distributions, of the partnership. With
respect to voting rights attributable to units that are held by assignees, the General Partner shall be deemed to be the limited
partner with respect thereto and shall, in exercising the voting rights in respect of such units on any matter, vote such units
at the written direction of the assignee who is the record holder of such units. If no such written direction is received, such
units will not be voted. An assignee shall have no other rights of a limited partner.
Until a unit has been transferred on USBO's
books, USBO and the transfer agent may treat the record holder of the unit as the absolute owner for all purposes, except as otherwise
required by law or stock exchange regulations.
Withdrawal of Limited Partners
As discussed in the LP Agreement, if the
General Partner gives at least fifteen (15) days' written notice to a limited partner, then the General Partner may
for any reason, in its sole discretion, require any such limited partner to withdraw entirely from the partnership or to withdraw
a portion of its partner capital account. If the General Partner does not give at least fifteen (15) days' written notice
to a limited partner, then it may only require withdrawal of all or any portion of the capital account of any limited partner in
the following circumstances: (i) the unitholder made a misrepresentation to the General Partner in connection with its purchase
of units; or (ii) the limited partner's ownership of units would result in the violation of any law or regulations applicable
to the partnership or a partner. In these circumstances, the General Partner without notice may require the withdrawal at any time,
or retroactively. The limited partner thus designated shall withdraw from the partnership or withdraw that portion of its partner
capital account specified, as the case may be, as of the close of business on such date as determined by the General Partner. The
limited partner thus designated shall be deemed to have withdrawn from the partnership or to have made a partial withdrawal from
its partner capital account, as the case may be, without further action on the part of the limited partner and the provisions of
the LP Agreement shall apply.
What is the Plan of Distribution?
Buying and Selling Units
Most investors buy and sell units of USBO
in secondary market transactions through brokers. Units trade on the NYSE Arca under the ticker symbol "BNO". Units
are bought and sold throughout the trading day like other publicly traded securities. When buying or selling units through a broker,
most investors incur customary brokerage commissions and charges. Investors are encouraged to review the terms of their brokerage
account for details on applicable charges and, as discussed below under "U.S. Federal Income Tax Considerations," any
provisions authorizing the broker to borrow units held on your behalf.
Marketing Agent and Authorized Purchasers
The offering
of USBO's units is a best efforts offering. USBO continuously offers Creation Baskets consisting of 50,000 units through
the Marketing Agent, to Authorized Purchasers. Merrill Lynch Professional Clearing Corp. was the initial Authorized Purchaser.
Authorized Purchasers pay a $350 fee for each order to create one or more Creation Baskets
through
May 1, 2014; on and after May 2, 2014, the fee increases to $1,000. The Marketing Agent receives, for its services as marketing
agent to USBO, a marketing fee of 0.06% on USBO's assets up to the first $3 billion; and 0.04% on USBO's assets in
excess of $3 billion;, provided, however, that in no event may the aggregate compensation paid to the Marketing Agent and any affiliate
of the General Partner for distribution- – related services in connection with this offering exceed ten percent (10%) of
the gross proceeds of this offering.
The offering of baskets is being made in
compliance with Conduct Rule 2310 of FINRA. Accordingly, Authorized Purchasers will not make any sales to any account over which
they have discretionary authority without the prior written approval of a purchaser of units.
The per unit price of units offered in
Creation Baskets on any subsequent day will be the total NAV of USBO calculated shortly after the close of the core trading session
on the NYSE Arca on that day divided by the number of issued and outstanding units. An Authorized Purchaser is not required to
sell any specific number or dollar amount of units.
By executing an Authorized Purchaser Agreement,
an Authorized Purchaser becomes part of the group of parties eligible to purchase baskets from, and put baskets for redemption
to, USBO. An Authorized Purchaser is under no obligation to create or redeem baskets, and an Authorized Purchaser is under no obligation
to offer to the public units of any baskets it does create.
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A list of Authorized Purchasers is available
from the Marketing Agent. Because new units can be created and issued on an ongoing basis, at any point during the life of USBO,
a "distribution", as such term is used in the 1933 Act, will be occurring. Authorized Purchasers, other broker-dealers
and other persons are cautioned that some of their activities may result in their being deemed participants in a distribution in
a manner that would render them statutory underwriters and subject them to the prospectus-delivery and liability provisions of
the 1933 Act. In addition, any purchaser who purchases units with a view towards distribution of such units may be deemed to be
a statutory underwriter.
Authorized Purchasers will comply with
the prospectus-delivery requirements in connection with the sale of units to customers. For example, an Authorized Purchaser, other
broker-dealer firm or its client will be deemed a statutory underwriter if it purchases a basket from USBO, breaks the basket down
into the constituent units and sells the units to its customers; or if it chooses to couple the creation of a supply of new units
with an active selling effort involving solicitation of secondary market demand for the units. Authorized Purchasers may also engage
in secondary market transactions in units that would not be deemed "underwriting". For example, an Authorized Purchaser
may act in the capacity of a broker or dealer with respect to units that were previously distributed by other Authorized Purchasers.
A determination of whether a particular market participant is an underwriter must take into account all the facts and circumstances
pertaining to the activities of the broker-dealer or its client in the particular case, and the examples mentioned above should
not be considered a complete description of all the activities that would lead to designation as an underwriter and subject them
to the prospectus-delivery and liability provisions of the 1933 Act.
Dealers who are neither Authorized Purchasers
nor "underwriters" but are nonetheless participating in a distribution (as contrasted to ordinary secondary trading
transactions), and thus dealing with units that are part of an "unsold allotment" within the meaning of Section 4(3)(C)
of the 1933 Act, would be unable to take advantage of the prospectus-delivery exemption provided by Section 4(3) of the 1933
Act.
The General Partner may qualify the units
in states selected by the General Partner and intends that sales be made through broker-dealers who are members of FINRA. Investors
intending to create or redeem baskets through Authorized Purchasers in transactions not involving a broker-dealer registered in
such investor's state of domicile or residence should consult their legal advisor regarding applicable broker-dealer or securities
regulatory requirements under the state securities laws prior to such creation or redemption.
While the Authorized Purchasers may be
indemnified by the General Partner, they will not be entitled to receive a discount or commission from USBO for their purchases
of Creation Baskets. The difference between the price paid by Authorized Purchasers as underwriters and the price paid to such
Authorized Purchasers by investors will be deemed underwriting compensation.
Calculating NAV
USBO's NAV is calculated by:
•
Taking the current market value of its total assets; and
•
Subtracting any liabilities; and
•
Dividing that total by the total number of outstanding units.
The Administrator calculates the NAV of
USBO once each NYSE Arca trading day. The per unit NAV for a particular trading day is released after 4:00 p.m. New York time.
Trading during the core trading session on the NYSE Arca typically closes at 4:00 p.m. New York time. The Administrator uses the
ICE Futures Exchange settlement price (a weighted average price of trades during a three minute settlement period from 2:27 p.m.
to 2:30 p.m. New York time) for the contracts traded on the ICE Futures Exchange, but calculates or determines the value of all
other USBO investments (including Futures Contracts not traded on NYMEX, Other Crude Oil-Related Investments and Treasuries) using
market quotations, if available, or other information customarily used to determine the fair value of such as of the earlier of
the close of the NYSE Arca or 4:00 p.m. New York time, in accordance with the current Administrative Agency Agreement among BBH&Co.,
USBO and the General Partner. "Other information" customarily used in determining fair value includes information consisting
of market data in the relevant market supplied by one or more third parties including, without limitation, relevant rates, prices,
yields, yield curves, volatilities, spreads, correlations or other market data in the relevant market; or information of the types
described above from internal sources if that information is of the same type used by USBO in the regular course of its business
for the valuation of similar transactions. The information may include costs of funding, to the extent costs of funding are not
and would not be a component of the other information being utilized. Third parties supplying quotations or market data may include,
without limitation, dealers in the relevant markets, end-users of the relevant product, information vendors, brokers and other
sources of market information.
In addition, in order to provide updated
information relating to USBO for use by investors and market professionals, the NYSE Arca calculates and disseminates throughout
the core trading session on each trading day an updated indicative fund value. The indicative fund value is calculated by using
the prior day's closing NAV per unit of USBO as a base and updating that value throughout the trading day to reflect changes
in the most recently reported trade price for the active Brent crude oil Futures Contracts on the ICE Futures Exchange. The prices
reported for those Futures Contract months are adjusted based on the prior day's spread differential between settlement values
for the relevant contract and the spot month contract. In the event that the spot month contract is also the Benchmark Futures
Contract, the last sale price for that contract is not adjusted. The indicative fund value unit basis disseminated during NYSE
Arca core trading session hours should not be viewed as an actual real time update of the NAV, because the NAV is calculated only
once at the end of each trading day based upon the relevant end of day values of USBO's investments.
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The NYSE Arca disseminates the indicative
fund value through the facilities of CTA/CQ High Speed Lines. In addition, the indicative fund value is published on the NYSE Arca's
website and is available through on-line information services such as Bloomberg and Reuters.
Dissemination of the indicative fund value
provides additional information that is not otherwise available to the public and is useful to investors and market professionals
in connection with the trading of USBO units on the NYSE Arca. Investors and market professionals are able throughout the trading
day to compare the market price of USBO and the indicative fund value. If the market price of USBO units diverges significantly
from the indicative fund value, market professionals will have an incentive to execute arbitrage trades. For example, if USBO appears
to be trading at a discount compared to the indicative fund value, a market professional could buy USBO units on the NYSE Arca
and sell short futures contracts. Such arbitrage trades can tighten the tracking between the market price of USBO and the indicative
fund value and thus can be beneficial to all market participants.
In addition, other Futures Contracts, Other
Crude Oil-Related Investments and Treasuries held by USBO are valued by the Administrator, using rates and points received from
client-approved third party vendors (such as Reuters and WM Company) and advisor quotes. These investments are not included in
the indicative value. The indicative fund value is based on the prior day's NAV and moves up and down solely according to
changes in the Benchmark Futures Contracts.
Creation and Redemption of Units
USBO creates and redeems units from time
to time, but only in one or more Creation Baskets or Redemption Baskets. The creation and redemption of baskets are only made in
exchange for delivery to USBO or the distribution by USBO of the amount of Treasuries and any cash represented by the baskets being
created or redeemed, the amount of which is based on the combined NAV of the number of units included in the baskets being created
or redeemed determined after 4:00 p.m. New York time on the day the order to create or redeem baskets is properly received.
Authorized Purchasers are the only persons
that may place orders to create and redeem baskets. Authorized Purchasers must be (1)registered broker-dealers or other securities
market participants, such as banks and other financial institutions, that are not required to register as broker-dealers to engage
in securities transactions described below, and (2) DTC Participants. To become an Authorized Purchaser, a person must enter into
an Authorized Purchaser Agreement with the General Partner. The Authorized Purchaser Agreement provides the procedures for the
creation and redemption of baskets and for the delivery of the Treasuries and any cash required for such creation and redemptions.
The Authorized Purchaser Agreement and the related procedures attached thereto may be amended by USBO, without the consent of any
limited partner or unitholder or Authorized Purchaser. Authorized Purchasers pay a transaction fee of $350 to USBO through May
1, 2014 for each order they place to create or redeem one or more baskets; on and after May 2, 2014, the fee increases to $1,000.
Authorized Purchasers who make deposits with USBO in exchange for baskets receive no fees, commission or other form of compensation
or inducement of any kind from either USBO or the General Partner, and no such person will have any obligation or responsibility
to the General Partner or USBO to effect any sale or resale of units.
Certain Authorized Purchasers are expected
to be capable of participating directly in the physical crude oil market and the crude oil futures market. In some cases, Authorized
Purchasers or their affiliates may from time to time buy or sell crude oil or Crude Oil Interests and may profit in these instances.
The General Partner believes that the size and operation of the crude oil market make it unlikely that an Authorized Purchaser's
direct activities in the crude oil or securities markets will significantly affect the price of crude oil, Crude Oil Interests,
Futures Contracts, or the price of the units.
Each Authorized Purchaser is required to
be registered as a broker-dealer under the Exchange Act and is a member in good standing with FINRA, or exempt from being or otherwise
not required to be registered as a broker-dealer or a member of FINRA, and qualified to act as a broker or dealer in the states
or other jurisdictions where the nature of its business so requires. Certain Authorized Purchasers may also be regulated under
federal and state banking laws and regulations. Each Authorized Purchaser has its own set of rules and procedures, internal controls
and information barriers as it determines is appropriate in light of its own regulatory regime.
Under the Authorized Purchaser Agreement,
the General Partner has agreed to indemnify the Authorized Purchasers against certain liabilities, including liabilities under
the Securities Act of 1933, as amended, and to contribute to the payments the Authorized Purchasers may be required to make in
respect of those liabilities.
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The following description of the procedures
for the creation and redemption of baskets is only a summary and an investor should refer to the relevant provisions of the LP
Agreement and the form of Authorized Purchaser Agreement for more detail. The LP Agreement is attached to this prospectus. The
form of the AP Agreement is attached as an exhibit to the registration statement of which this prospectus is a part. See "Where
You Can Find More Information" for information about where you can obtain the registration statement.
Creation Procedures
On any business day, an Authorized Purchaser
may place an order with the Marketing Agent to create one or more baskets. For purposes of processing purchase and redemption orders,
a "business day" means any day other than a day when any of the NYSE Arca, the ICE Futures or the NYSE is closed for
regular trading. Purchase orders must be placed by 12:00 p.m. New York time or the close of regular trading on the NYSE Arca, whichever
is earlier. The day on which the Marketing Agent receives a valid purchase order is referred to as the purchase order date.
By placing a purchase order, an Authorized
Purchaser agrees to deposit Treasuries, cash, or a combination of Treasuries and cash with USBO, as described below. Prior to the
delivery of baskets for a purchase order, the Authorized Purchaser must also have wired to the Custodian the non-refundable transaction
fee due for the purchase order. Authorized Purchasers may not withdraw a creation request.
The manner by which creations are made
is dictated by the terms of the Authorized Purchaser Agreement. By placing a purchase order, an Authorized Purchaser agrees to
(1) deposit Treasuries, cash, or a combination of Treasuries and cash with the Custodian of the fund, and (2) if required
by the General Partner in its sole discretion, enter into or arrange for a block trade, an exchange for physical or exchange for
swap, or any other over-the-counter energy transaction (through itself or a designated acceptable broker) with the fund for the
purchase of a number and type of futures contracts at the closing settlement price for such contracts on the purchase order date.
If an Authorized Purchaser fails to consummate (1) and (2), the order shall be cancelled. The number and types of contracts
specified shall be determined by the General Partner, in its sole discretion, to meet USBO's investment objective and shall
be purchased as a result of the Authorized Purchaser's purchase of units.
Determination of Required Deposits
The total deposit required to create each
basket ("Creation Basket Deposit") is the amount of Treasuries and/or cash that is in the same proportion to the total
assets of USBO (net of estimated accrued but unpaid fees, expenses and other liabilities) on the purchase order date is accepted
as the number of units to be created under the purchase order is in proportion to the total number of units outstanding on the
purchase order date. The General Partner determines, directly in its sole discretion or in consultation with the Administrator,
the requirements for Treasuries and the amount of cash, including the maximum permitted remaining maturity of a Treasury and proportions
of Treasury and cash that may be included in deposits to create baskets. The Marketing Agent will publish such requirements at
the beginning of each business day. The amount of cash deposit required is the difference between the aggregate market value of
the Treasuries required to be included in a Creation Basket Deposit as of 4:00 p.m. New York time on the date the order to purchase
is properly received and the total required deposit.
Delivery of Required Deposits
An Authorized Purchaser who places a purchase
order is responsible for transferring to USBO's account with the Custodian the required amount of Treasuries and cash by
the end of the third business day following the purchase order date. Upon receipt of the deposit amount, the Administrator directs
DTC to credit the number of baskets ordered to the Authorized Purchaser's DTC account on the third business day following
the purchase order date. The expense and risk of delivery and ownership of Treasuries until such Treasuries have been received
by the Custodian on behalf of USBO is borne solely by the Authorized Purchaser.
Because orders to purchase baskets must
be placed by 12:00 p.m., New York time, but the total payment required to create a basket during the continuous offering period
will not be determined until after 4:00 p.m. New York time on the date the purchase order is received, Authorized Purchasers will
not know the total amount of the payment required to create a basket at the time they submit an irrevocable purchase order for
the basket. USBO's NAV and the total amount of the payment required to create a basket could rise or fall substantially between
the time an irrevocable purchase order is submitted and the time the amount of the purchase price in respect thereof is determined.
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Rejection of Purchase Orders
The General Partner acting by itself or
through the Marketing Agent shall have the absolute right but no obligation to reject a purchase order or a Creation Basket Deposit
if:
•
it determines that the investment alternative available to USBO at that time will not enable it to meet its investment objective;
•
it determines that the purchase order or the Creation Basket Deposit is not in proper form;
•
it believes that the purchase order or the Creation Basket Deposit would have adverse tax consequences to USBO, the limited
partners or the unitholders;
•
the acceptance or receipt of the Creation Basket Deposit would, in the opinion of counsel to the General Partner, be unlawful;
or
•
circumstances outside the control of the General Partner, Marketing Agent or Custodian make it, for all practical purposes,
not feasible to process creations of baskets.
None of the General Partner, Marketing
Agent or Custodian will be liable for the rejection of any purchase order or Creation Basket Deposit.
Redemption Procedures
The procedures by which an Authorized Purchaser
can redeem one or more baskets mirror the procedures for the creation of baskets. On any business day, an Authorized Purchaser
may place an order with the Marketing Agent to redeem one or more baskets. Redemption orders must be placed by 12:00 p.m. New York
time or the close of regular trading on the NYSE, whichever is earlier. A redemption order so received will be effective on the
date it is received in satisfactory form by the Marketing Agent. The redemption procedures allow Authorized Purchasers to redeem
baskets and do not entitle an individual unitholder to redeem any units in an amount less than a Redemption Basket, or to redeem
baskets other than through an Authorized Purchaser.
By placing a redemption order, an Authorized
Purchaser agrees to deliver the baskets to be redeemed through DTC's book-entry system to USBO not later than 3:00 p.m. New
York time on the third business day following the effective date of the redemption order. Prior to the delivery of the redemption
distribution for a redemption order, the Authorized Purchaser must also have wired to USBO's account at the Custodian the
non-refundable transaction fee due for the redemption order. An Authorized Purchaser may not withdraw a redemption order.
The manner by which redemptions are made
is dictated by the terms of the Authorized Purchaser Agreement. By placing a redemption order, an Authorized Purchaser agrees to
(1) deliver the Redemption Basket to be redeemed through DTC's book-entry system to USBO's account with the Custodian
not later than 3:00 p.m. New York time on the third business day following the effective date of the redemption order ("Redemption
Distribution Date"), and (2) if required by the General Partner in its sole discretion, enter into or arrange for a
block trade, an exchange for physical or exchange for swap, or any other over-the-counter energy transaction (through itself or
a designated acceptable broker) with the fund for the sale of a number and type of futures contracts at the closing settlement
price for such contracts on the Redemption Order Date. If an Authorized Purchaser fails to consummate (1) and (2) above,
the order shall be cancelled. The number and type of contracts specified shall be determined by the General Partner, in its sole
discretion, to meet USBO's investment objective and shall be sold as a result of the Authorized Purchaser's sale of
units.
Determination of Redemption Distribution
The redemption distribution from USBO consists
of a transfer to the redeeming Authorized Purchaser of an amount of Treasuries and cash that is in the same proportion to the total
assets of USBO (net of estimated accrued but unpaid fees, expenses and other liabilities) on the date the order to redeem is properly
received as the number of units to be redeemed under the redemption order is in proportion to the total number of units outstanding
on the date the order is received. The General Partner, directly or in consultation with the Administrator, determines the requirements
for Treasuries and the amounts of cash, including the maximum permitted remaining maturity of a Treasury, and the proportions of
Treasuries and cash that may be included in distributions to redeem baskets. The Marketing Agent will publish an estimate of the
redemption distribution per basket as of the beginning of each business day.
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Delivery of Redemption Distribution
The redemption distribution due from USBO
will be delivered to the Authorized Purchaser by 3:00 p.m. New York time on the third business day following the redemption order
date if, by 3:00 p.m. New York time on such third business day, USBO's DTC account has been credited with the baskets to
be redeemed. If USBO's DTC account has not been credited with all of the baskets to be redeemed by such time, the redemption
distribution will be delivered to the extent of whole baskets received. Any remainder of the redemption distribution will be delivered
on the next business day to the extent of remaining whole baskets received if USBO receives the fee applicable to the extension
of the redemption distribution date which the General Partner may, from time to time, determine and the remaining baskets to be
redeemed are credited to USBO's DTC account by 3:00 p.m. New York time on such next business day. Any further outstanding
amount of the redemption order shall be cancelled. Pursuant to information from the General Partner, the Custodian will also be
authorized to deliver the redemption distribution notwithstanding that the baskets to be redeemed are not credited to USBO's
DTC account by 3:00 p.m. New York time on the third business day following the redemption order date if the Authorized Purchaser
has collateralized its obligation to deliver the baskets through DTC's book entry-system on such terms as the General Partner
may from time to time determine.
Suspension or Rejection of Redemption Orders
The General Partner may, in its discretion,
suspend the right of redemption, or postpone the redemption settlement date, (1) for any period during which the NYSE Arca
or the ICE Futures is closed other than customary weekend or holiday closings, or trading on the NYSE Arca or the ICE Futures is
suspended or restricted, (2) for any period during which an emergency exists as a result of which delivery, disposal or evaluation
of Treasuries is not reasonably practicable, or (3) for such other period as the General Partner determines to be necessary
for the protection of the limited partners. For example, the General Partner may determine that it is necessary to suspend redemptions
to allow for the orderly liquidation of USBO's assets at an appropriate value to fund a redemption. If the General Partner
has difficulty liquidating its positions,
e.g.
, because of a market disruption event in the futures markets, a suspension
of trading by the exchange where the futures contracts are listed or an unanticipated delay in the liquidation of a position in
an over-the-counter contract, it may be appropriate to suspend redemptions until such time as such circumstances are rectified.
None of the General Partner, the Marketing Agent, the Administrator, or the Custodian will be liable to any person or in any way
for any loss or damages that may result from any such suspension or postponement.
Redemption orders must be made in whole
baskets. The General Partner will reject a redemption order if the order is not in proper form as described in the Authorized Purchaser
Agreement or if the fulfillment of the order, in the opinion of its counsel, might be unlawful. The General Partner may also reject
a redemption order if the number of units being redeemed would reduce the remaining outstanding units to 100,000 units (
i.e.
,
two baskets) or less.
Creation and Redemption Transaction Fee
To compensate USBO
for its expenses in connection with the creation and redemption of baskets, an Authorized Purchaser is required to pay a transaction
fee to USBO of $350 per order through May 1, 2014 to create or redeem baskets, regardless of the number of baskets in such order;
on and after May 2, 2014, the fee increases to $1,000. The transaction fee may be reduced, increased or otherwise changed by the
General Partner. The General Partner shall notify DTC of any change in the transaction fee and will not implement any increase
in the fee for the redemption of baskets until 30 days after the date of notice.
Tax Responsibility
Authorized Purchasers are responsible for
any transfer tax, sales or use tax, stamp tax, recording tax, value added tax or similar tax or governmental charge applicable
to the creation or redemption of baskets, regardless of whether or not such tax or charge is imposed directly on the Authorized
Purchaser, and agree to indemnify the General Partner and USBO if they are required by law to pay any such tax, together with any
applicable penalties, additions to tax and interest thereon.
Secondary Market Transactions
As noted, USBO creates and redeems units
from time to time, but only in one or more Creation Baskets or Redemption Baskets. The creation and redemption of baskets are only
made in exchange for delivery to USBO or the distribution by USBO of the amount of Treasuries and cash represented by the baskets
being created or redeemed, the amount of which will be based on the aggregate NAV of the number of units included in the baskets
being created or redeemed determined on the day the order to create or redeem baskets is properly received.
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As discussed above, Authorized Purchasers
are the only persons that may place orders to create and redeem baskets. Authorized Purchasers must be registered broker-dealers
or other securities market participants, such as banks and other financial institutions that are not required to register as broker-dealers
to engage in securities transactions. An Authorized Purchaser is under no obligation to create or redeem baskets, and an Authorized
Purchaser is under no obligation to offer to the public units of any baskets it does create. Authorized Purchasers that do offer
to the public units from the baskets they create will do so at per-unit offering prices that are expected to reflect, among other
factors, the trading price of the units on the NYSE Arca, the NAV of USBO at the time the Authorized Purchaser purchased the Creation
Baskets and the NAV of the units at the time of the offer of the units to the public, the supply of and demand for units at the
time of sale, and the liquidity of the Futures Contract market and the market for Other Crude Oil-Related Investments. The prices
of units offered by Authorized Purchasers are expected to fall between USBO's NAV and the trading price of the units on the
NYSE Arca at the time of sale. Units initially comprising the same basket but offered by Authorized Purchasers to the public at
different times may have different offering prices. An order for one or more baskets may be placed by an Authorized Purchaser on
behalf of multiple clients. Authorized Purchasers who make deposits with USBO in exchange for baskets receive no fees, commissions
or other form of compensation or inducement of any kind from either USBO or the General Partner, and no such person has any obligation
or responsibility to the General Partner or USBO to effect any sale or resale of units. Units trade in the secondary market on
the NYSE Arca. Units may trade in the secondary market at prices that are lower or higher relative to their NAV per unit. The amount
of the discount or premium in the trading price relative to the NAV per unit may be influenced by various factors, including the
number of investors who seek to purchase or sell units in the secondary market and the liquidity of the Futures Contracts market
and the market for Other Crude Oil-Related Investments. While the units trade during the core trading session on the NYSE Arca
until 4:00 p.m. New York time and trading in Futures Contracts on the ICE Futures Exchange continues throughout the entire NYSE
Arca trading day, liquidity in the market for Futures Contracts and Other Crude Oil-Related Investments traded on the NYMEX may
be reduced after the close of the NYMEX at 2:30 p.m. New York time. As a result, during this time, particularly if USBO has invested
in Futures Contracts and Other Crude Oil-Related Investment traded on NYMEX, trading spreads, and the resulting premium or discount,
on the units may widen.
Use of Proceeds
The General Partner causes USBO to transfer
the proceeds from the sale of Creation Baskets to the Custodian or other custodian for trading activities. The General Partner
will invest USBO's Futures Contracts and Other Crude Oil-Related Investments and investments in Treasuries, cash and/or cash
equivalents. When USBO purchases a Futures Contract and certain exchange-traded Other Crude Oil-Related Investments, USBO is required
to deposit 5% to 30% with the selling futures commission merchant on behalf of the exchange a portion of the value of the contract
or other interest as security to ensure payment for the obligation under Crude Oil-Related Interests at maturity. This deposit
is known as initial margin. Counterparties in transactions in over-the-counter Crude Oil-Related Interests will generally impose
similar collateral requirements on USBO. The General Partner will invest the assets that remain after margin and collateral are
posted in Treasuries, cash and/or cash equivalents subject to these margin and collateral requirements. The General Partner has
sole authority to determine the percentage of assets that are:
•
held on deposit with the futures commission merchant or other custodian;
•
used for other investments; and
•
held in bank accounts to pay current obligations and as reserves.
Ongoing margin and collateral payments
will generally be required for both exchange-traded and over-the-counter Crude Oil-Related Interests based on changes in the value
of the Crude Oil-Related Interests. Furthermore, ongoing collateral requirements with respect to over-the-counter Crude Oil-Related
Interests are negotiated by the parties, and may be affected by overall market volatility, volatility of the underlying commodity
or index, the ability of the counterparty to hedge its exposure under the Crude Oil-Related Interest, and each party's creditworthiness.
In light of the differing requirements for initial payments under exchange-traded and over-the-counter Crude Oil-Related Interests
and the fluctuating nature of ongoing margin and collateral payments, it is not possible to estimate what portion of USBO's
assets will be posted as margin or collateral at any given time. The Treasuries, cash and cash equivalents held by USBO will constitute
reserves that will be available to meet ongoing margin and collateral requirements. All interest income will be used for USBO's
benefit. The General Partner invests the balance of USBO's assets not invested in Crude Oil-Related Interests or held in
margin as reserves to be available for changes in margin.
A futures commission merchant, counterparty,
government agency or commodity exchange could increase margin or collateral requirements applicable to USBO to hold trading positions
at any time. Moreover, margin is merely a security deposit and has no bearing on the profit or loss potential for any positions
held.
The assets of USBO posted as margin for
Futures Contracts and over-the-counter contracts will be held in segregation pursuant to the CEA and CFTC regulations.
Limited Partnership Agreement
The following paragraphs are a summary
of certain provisions of our LP Agreement. The following discussion is qualified in its entirety by reference to our LP Agreement.
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Authority of the General Partner
Our General Partner is generally authorized
to perform all acts deemed necessary to carry out the purposes of the limited partnership and to conduct our business. Our partnership
existence will continue into perpetuity, until terminated in accordance with our LP Agreement. Our General Partner has a power
of attorney to take certain actions, including the execution and filing of documents, on our behalf and with respect to our LP
Agreement. However, our partnership agreement limits the authority of our General Partner as follows:
•
Other than in connection with the issuance or redemption of units, or upon termination of the partnership as contemplated by
the LP Agreement, the General Partner may not sell, exchange or otherwise dispose of all or substantially all of the partnership's
assets in a single transaction or a series of related transactions (including by way of merger, consolidation or other combination
with any other person) or approve on behalf of the partnership, the sale, exchange or other disposition of all or substantially
all of the assets of all of the partnership, taken as a whole, without the approval of at least a majority of the limited partners;
provided, however, that this provision shall not preclude or limit the General Partner's ability to mortgage, pledge, hypothecate
or grant a security interest in all or substantially all of the partnership's assets and shall not apply to any forced sale
of any or all of the partnership's assets pursuant to the foreclosure of, or other realization upon, any such encumbrance.
•
The General Partner is not authorized to institute or initiate on behalf of, or otherwise cause, the partnership to (a) make
a general assignment for the benefit of creditors; (b) file a voluntary bankruptcy petition; or (c) file a petition seeking
for the partnership a reorganization, arrangement, composition, readjustment liquidation, dissolution or similar relief under any
law.
•
The General Partner may not, without written approval of the specific act by all of the limited partners or by other written
instrument executed and delivered by all of the limited partners subsequent to the date of the LP Agreement, take any action in
contravention of the LP Agreement, including, without limitation, (i) any act that would make it impossible to carry on the
ordinary business of the partnership, except as otherwise provided in the LP Agreement; (ii) possess partnership property,
or assign any rights in specific partnership property, for other than a partnership purpose; (iii) admit a person as a partner,
except as otherwise provided in the LP Agreement; (iv) amend the LP Agreement in any manner, except as otherwise provided
in the LP Agreement or applicable law; or (v) transfer its interest as General Partner of the partnership, except as otherwise
provided in the LP Agreement.
•
In general, unless approved by a majority of the limited partners, our General Partner shall not take any action, or refuse
to take any reasonable action, the effect of which would be to cause us, to the extent it would materially and adversely affect
limited partners, to be taxable as a corporation or to be treated as an association taxable as a corporation for federal income
tax purposes.
Withdrawal or Removal of The General Partner
The General Partner shall be deemed to
have withdrawn from the partnership upon the occurrence of any one of the following events:
•
the General Partner voluntarily withdraws from the partnership by giving written notice to the other partners;
•
the General Partner transfers all of its rights as General Partner;
•
the General Partner is removed;
•
the General Partner (A) makes a general assignment for the benefit of creditors; (B) files a voluntary bankruptcy
petition; (C) files a petition or answer seeking for itself a reorganization, arrangement, composition, readjustment liquidation,
dissolution or similar relief under any law; (D) files an answer or other pleading admitting or failing to contest the material
allegations of a petition filed against the General Partner in a proceeding of the type described in clauses (A) – (C)
of this sentence; or (E) seeks, consents to or acquiesces in the appointment of a trustee, receiver or liquidator of the General
Partner or of all or any substantial part of its properties;
•
a final and non-appealable judgment is entered by a court with appropriate jurisdiction ruling that the General Partner is
bankrupt or insolvent or a final and non-appealable order for relief is entered by a court with appropriate jurisdiction against
the General Partner, in each case under any federal or state bankruptcy or insolvency laws as now or hereafter in effect; or
•
a certificate of dissolution or its equivalent is filed for the General Partner, or 90 days expire after the date of notice
to the General Partner of revocation of its charter without a reinstatement of its charter, under the laws of its state of incorporation.
The General Partner may be removed with
or without cause if such removal is approved by the holders of at least 66 2/3% of the outstanding units (excluding for this
purpose units held by the General Partner and its affiliates).
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Meetings
All acts of the limited partners should
be done in accordance with the Delaware Revised Uniform Limited Partnership Act ("DRULPA"). Upon the written request
of 20% or more in interest of the limited partners, the General Partner may, but is not required to, call a meeting of the limited
partners. Notice of such meeting shall be given within 30 days after, and the meeting shall be held within 60 days after, receipt
of such request. The General Partner may also call a meeting not less than 20 and not more than 60 days prior to the meeting. Any
such notice shall state briefly the purpose of the meeting, which shall be held at a reasonable time and place. Any limited partner
may obtain a list of names, addresses, and interests of the limited partners upon written request to the General Partner.
Limited Liability
Assuming that a limited partner does not
take part in the control of our business, and that he otherwise acts in conformity with the provisions of our LP Agreement, his
liability under Delaware law will be limited, subject to certain possible exceptions, generally to the amount of capital he is
obligated to contribute to us in respect of his units or other limited partner interests plus his share of any of our undistributed
profits and assets. In light of the fact that a limited partner's liability may extend beyond his capital contributions,
a limited partner may lose more money than he contributed.
Under Delaware law, a limited partner might
be held liable for USBO's obligations as if it were a General Partner if the limited partner participates in the control
of the partnership's business and the persons who transact business with the partnership think the limited partner is the
General Partner.
Under the LP Agreement, a limited partner
will not be liable for assessments in addition to its initial capital investment in any of USBO's capital securities representing
limited partnership interests. However, a limited partner still may be required to repay to USBO any amounts wrongfully returned
or distributed to it under some circumstances. Under Delaware law, USBO may not make a distribution to limited partners if the
distribution causes USBO's liabilities (other than liabilities to partners on account of their partnership interests and
nonrecourse liabilities) to exceed the fair value of USBO's assets. Delaware law provides that a limited partner who receives
such a distribution and knew at the time of the distribution that the distribution violated the law will be liable to the limited
partnership for the amount of the distribution for three years from the date of the distribution.
The General Partner Has Conflicts of Interest
There are present and potential future
conflicts of interest in USBO's structure and operation you should consider before you purchase units. The General Partner
will use this notice of conflicts as a defense against any claim or other proceeding made. If the General Partner is not able to
resolve these conflicts of interest adequately, it may impact USBO's and the Related Public Funds' ability to achieve
their investment objectives.
USBO and the General Partner may have inherent
conflicts to the extent the General Partner attempts to maintain USBO's asset size in order to preserve its fee income and
this may not always be consistent with USBO's objective of having the value of its unit's NAV track changes in the
price of the Benchmark Future Contract.
The General Partner's officers, directors
and employees, do not devote their time exclusively to USBO. These persons are directors, officers or employees of other entities
which may compete with USBO for their services. They could have a conflict between their responsibilities to USBO and to those
other entities. The General Partner believes that it has sufficient personnel, time, and working capital to discharge its responsibilities
in a fair manner and that these persons' conflicts should not impair their ability to provide services to USBO.
The General Partner and the General Partner's
principals, officers, directors and employees may trade futures and related contracts for their own account. Limited partners and
other unitholders are not permitted to inspect the trading records or any written policies related to such trading of the General
Partner and its principals, officers, directors, and employees. A conflict of interest may exist if their trades are in the same
markets and at the same time as USBO trades using the clearing broker to be used by USBO. A potential conflict also may occur when
the General Partner's principals trade their accounts more aggressively or take positions in their accounts which are opposite,
or ahead of, the positions taken by USBO. The General Partner has adopted a Code of Business Conduct and Ethics to ensure that
the officers, directors, and employees of the General Partner and its affiliates do not engage in trades that will harm the fund
or the unitholders. The General Partner has also adopted Corporate Governance Guidelines. If these provisions are not successful,
unitholders may be harmed in that such trades could affect the prices of the futures contracts purchased by USBO which could affect
USBO's ability to track the Benchmark Futures Contract. The Code of Business Conduct and Ethics, and the Corporate Governance
Guidelines may be found on USBO's website at
www.unitedstatesbrentoilfund.com
.
70
The General Partner has sole current authority
to manage the investments and operations of USBO, and this may allow it to act in a way that furthers its own interests which may
create a conflict with your best interests. Limited partners have limited voting control, which will limit their ability to influence
matters such as amendment of the LP Agreement, change in USBO's basic investment policy, dissolution of USBO, or the sale
or distribution of USBO's assets.
The General Partner serves as the general
partner to USBO and the Related Public Funds, as well as of other funds that have yet to offer securities to the public or begin
operations. The General Partner may have a conflict to the extent that its trading decisions for USBO may be influenced by the
effect they would have on the other funds it manages. By way of example, if, as a result of reaching position limits imposed by
the ICE Futures Exchange on Brent Crude Oil Futures Contracts (or otherwise), the General Partner might determine that there would
be potential benefits in purchasing instead another type of petroleum-based futures contract, such as gasoline futures contracts.
However, the General Partner might be disinclined to purchase gasoline futures contracts, this decision could impact its ability
to purchase additional gasoline futures contracts for USBO if adversely doing so would be due to applicability position limits
for other Related Public Funds (such as the United States Gasoline Fund, LP). In addition, the General Partner is required to indemnify
the officers and directors of the other funds, if the need for indemnification arises. This potential indemnification will cause
the General Partner's assets to decrease. If the General Partner's other sources of income are not sufficient to compensate
for the indemnification, then the General Partner may terminate and you could lose your investment.
No Resolution of Conflicts Procedures
Whenever a conflict of interest exists
or arises between the General Partner on the one hand, and the partnership or any limited partner, on the other hand, any resolution
or course of action by the General Partner in respect of such conflict of interest shall be permitted and deemed approved by all
partners and shall not constitute a breach of the LP Agreement or of any agreement contemplated hereby or of a duty stated or implied
by law or equity, if the resolution or course of action is, or by operation of the LP Agreement is deemed to be, fair and reasonable
to the partnership. If a dispute arises, under the LP Agreement it will be resolved either through negotiations with the General
Partner or by courts located in the State of Delaware.
Under the LP Agreement, any resolution
is deemed to be fair and reasonable to the partnership if the resolution is:
•
approved by the audit committee, although no party is obligated to seek approval and the General Partner may adopt a resolution
or course of action that has not received approval;
•
on terms no less favorable to the limited partners than those generally being provided to or available from unrelated third
parties; or
•
fair to the limited partners, taking into account the totality of the relationships of the parties involved including other
transactions that may be particularly favorable or advantageous to the limited partners.
The previous risk factors and conflicts
of interest are complete as of the date of this prospectus; however, additional risks and conflicts may occur which are not presently
foreseen by the General Partner. You may not construe this prospectus as legal or tax advice. Before making an investment in this
fund, you should read this entire prospectus, including the LP Agreement (Appendix B). You should also consult with your personal
legal, tax, and other professional advisors.
Interests of Named Experts and Counsel
The General Partner has engaged Reed Smith
LLP to assist in the preparation of this prospectus. Neither the law firm nor any other expert hired by USBO to give advice on
the preparation of this offering document has been hired on a contingent fee basis. Nor does any of them have any present or future
expectation of interest in the General Partner, Marketing Agent, Authorized Purchasers, Custodian, Administrator or other service
providers to USBO.
The General Partner's Responsibilities and Remedies
Pursuant to the DRULPA, parties may contractually
modify or even eliminate fiduciary duties in a limited partnership agreement to the limited partnership itself, or to another partner
or person otherwise bound by the limited partnership agreement. Parties may not, however, eliminate the implied covenant of good
faith and fair dealing. Where parties unambiguously provide for fiduciary duties in a limited partnership agreement, those expressed
duties become the standard that courts will use to determine whether such duties were breached. For this reason, USBO's limited
partnership agreement does not explicitly provide for any fiduciary duties so that common law fiduciary duty principles will apply
to measure the General Partner's conduct.
71
A prospective investor should be aware
that the General Partner has a responsibility to limited partners of USBO to exercise good faith and fairness in all dealings.
The fiduciary responsibility of a general partner to limited partners is a developing and changing area of the law and limited
partners who have questions concerning the duties of the General Partner should consult with their counsel. In the event that a
limited partner of USBO believes that the General Partner has violated its fiduciary duty to the limited partners, he may seek
legal relief individually or on behalf of USBO under applicable laws, including under DRULPA and under commodities laws, to recover
damages from or require an accounting by the General Partner. Limited partners may also have the right, subject to applicable procedural
and jurisdictional requirements, to bring class actions in federal court to enforce their rights under the federal securities laws
and the rules and regulations promulgated thereunder by the SEC. Limited partners who have suffered losses in connection with the
purchase or sale of the units may be able to recover such losses from the General Partner where the losses result from a violation
by the General Partner of the federal securities laws. State securities laws may also provide certain remedies to limited partners.
Limited partners should be aware that performance by the General Partner of its fiduciary duty is measured by the terms of the
LP Agreement as well as applicable law. Limited partners are afforded certain rights to institute reparations proceedings under
the CEA for violations of the CEA or of any rule, regulation or order of the CFTC by the General Partner.
Liability and Indemnification
Under the LP Agreement, neither a General
Partner nor any employee or other agent of USBO nor any officer, director, stockholder, partner, employee or agent of a General
Partner (a "Protected Person") shall be liable to any partner or USBO for any mistake of judgment or for any action
or inaction taken, nor for any losses due to any mistake of judgment or to any action or inaction or to the negligence, dishonesty
or bad faith of any officer, director, stockholder, partner, employee, agent of USBO or any officer, director, stockholder, partner,
employee or agent of such General Partner, provided that such officer, director, stockholder, partner, employee, or agent of the
partner or officer, director, stockholder, partner, employee or agent of such General Partner was selected, engaged or retained
by such General Partner with reasonable care, except with respect to any matter as to which such General Partner shall have been
finally adjudicated in any action, suit or other proceeding not to have acted in good faith in the reasonable belief that such
Protected Person's action was in the best interests of USBO and except that no Protected Person shall be relieved of any
liability to which such Protected Person would otherwise be subject by reason of willful misfeasance, gross negligence or reckless
disregard of the duties involved in the conduct of the Protected Person's office.
USBO shall, to the fullest extent permitted
by law, but only out of USBO assets, indemnify and hold harmless a General Partner and each officer, director, stockholder, partner,
employee or agent thereof (including persons who serve at USBO's request as directors, officers or trustees of another organization
in which USBO has an interest as a unitholder, creditor or otherwise) and their respective Legal Representatives and successors
(hereinafter referred to as a "Covered Person" against all liabilities and expenses, including but not limited to amounts
paid in satisfaction of judgments, in compromise or as fines and penalties, and counsel fees reasonably incurred by any Covered
Person in connection with the defense or disposition of any action, suit or other proceedings, whether civil or criminal, before
any court or administrative or legislative body, in which such Covered Person may be or may have been involved as a party or otherwise
or with which such person may be or may have been threatened, while in office or thereafter, by reason of an alleged act or omission
as a General Partner or director or officer thereof, or by reason of its being or having been such a General Partner, director
or officer, except with respect to any matter as to which such Covered Person shall have been finally adjudicated in any such action,
suit or other proceeding not to have acted in good faith in the reasonable belief that such Covered Person's action was in
the best interest of USBO, and except that no Covered Person shall be indemnified against any liability to USBO or limited partners
to which such Covered Person would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless
disregard of the duties involved in the conduct of such Covered Person's office. Expenses, including counsel fees so incurred
by any such Covered Person, may be paid from time to time by USBO in advance of the final disposition of any such action, suit
or proceeding on the condition that the amounts so paid shall be repaid to USBO if it is ultimately determined that the indemnification
of such expenses is not authorized hereunder.
Provisions of Law
According to applicable law, indemnification
of the General Partner is payable only if the General Partner determined, in good faith, that the act, omission or conduct that
gave rise to the claim for indemnification was in the best interest of USBO and the act, omission or activity that was the basis
for such loss, liability, damage, cost or expense was not the result of negligence or misconduct and such liability or loss was
not the result of negligence or misconduct by the General Partner, and such indemnification or agreement to hold harmless is recoverable
only out of the assets of USBO and not from the members, individually.
Provisions of Federal and State Securities Laws
This offering is made pursuant to federal
and state securities laws. The SEC and state securities agencies take the position that indemnification of the General Partner
that arises out of an alleged violation of such laws is prohibited unless certain conditions are met.
Those conditions require that no indemnification
of the General Partner or any underwriter for USBO may be made in respect of any losses, liabilities or expenses arising from or
out of an alleged violation of federal or state securities laws unless: (i) there has been a successful adjudication on the
merits of each count involving alleged securities law violations as to the party seeking indemnification and the court approves
the indemnification; (ii) such claim has been dismissed with prejudice on the merits by a court of competent jurisdiction
as to the party seeking indemnification; or (iii) a court of competent jurisdiction approves a settlement of the claims against
the party seeking indemnification and finds that indemnification of the settlement and related costs should be made, provided that,
before seeking such approval, the General Partner or other indemnitee must apprise the court of the position held by regulatory
agencies against such indemnification. These agencies are the SEC and the securities administrator of the State or States in which
the plaintiffs claim they were offered or sold membership interests.
72
Provisions of the Securities Act of 1933 and NASAA Guidelines
Insofar as indemnification for liabilities
arising under the Securities Act of 1933 may be permitted to the General Partner or its directors, officers, or persons controlling
USBO, USBO has been informed that SEC and the various State administrators believe that such indemnification is against public
policy as expressed in the Securities Act of 1933 and the North American Securities Administrators Association, Inc. ("NASAA")
commodity pool guidelines and is therefore unenforceable.
Books and Records
USBO keeps its books of record and account
at its office located at 1999 Harrison Street, Suite 1530, Oakland, California 94612 or at the offices of the Administrator at
its office located at 40 Water Street, Boston, Massachusetts, 02109, or such office, including of an administrative agent, as it
may subsequently designate upon notice. These books and records are open to inspection by any person who establishes to USBO's
satisfaction that such person is a limited partner upon reasonable advance notice at all reasonable times during the usual business
hours of USBO.
USBO keeps a copy of USBO's LP Agreement
on file in its office which is available for inspection on reasonable advance notice at all reasonable times during its usual business
hours by any limited partner.
Analysis of Critical Accounting Policies
USBO's critical accounting policies
are forth in the financial statements that are incorporated by reference in this prospectus are prepared in accordance with accounting
principles generally accepted in the United States of America, which require the use of certain accounting policies that affect
the amounts reported in these financial statements, including the following: USBO trades are accounted for on a trade-date basis
and marked to market on a daily basis. The difference between their cost and market value is recorded as "change in unrealized
profit/loss" for open (unrealized) contracts, and recorded as "realized profit/loss" when open positions are
closed out; the sum of these amounts constitutes USBO's trading revenues. Earned interest income revenue, as well as management
fee, and brokerage fee expenses of USBO are recorded on an accrual basis. The General Partner believes that all relevant accounting
assumptions and policies have been considered.
Statements, Filings, and Reports
At the end of each fiscal year, USBO will
furnish to DTC Participants for distribution to each person who is a unitholder at the end of the fiscal year an annual report
containing USBO's audited financial statements and other information about USBO. The General Partner is responsible for the
registration and qualification of the units under the federal securities laws and federal commodities laws and any other securities
and blue sky laws of the United States or any other jurisdiction as the General Partner may select. The General Partner is responsible
for preparing all reports required by the SEC, CFTC, and the NYSE Arca but has entered into an agreement with the Administrator
to prepare these reports as required by the SEC, CFTC and the NYSE Arca on USBO's behalf.
The financial statements of USBO will be
audited, as required by law and as may be directed by the General Partner, by an independent registered public accounting firm
designated from time to time by the General Partner. The accountants report will be furnished by USBO to unitholders upon request.
USBO will make such elections, file such tax returns, and prepare, disseminate and file such tax reports, as it is advised by its
counsel or accountants are from time to time required by any applicable statute, rule or regulation.
Reports to Limited Partners
In addition to periodic reports filed with
the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, all of which can
be accessed on the SEC's website at
www.sec.gov
or on USBO's website at
www.unitedstatesbrentoilfund.com,
USBO, pursuant to the LP Agreement, will provide the following reports to limited partners in the manner prescribed below.
Annual Reports
. Within 90 days
after the end of each fiscal year, the General Partner shall cause to be delivered to each limited partner who was a limited partner
at any time during the fiscal year, an annual report containing the following:
(i)
financial statements of the partnership, including, without limitation, a balance sheet as of the end of the partnership's
fiscal year and statements of income, partners' equity and changes in financial position, for such fiscal year, which shall
be prepared in accordance with accounting principles generally accepted in the United States of America consistently applied and
shall be audited by a firm of independent certified public accountants registered with the Public Company Accounting Oversight
Board;
73
(ii)
a general description of the activities of the partnership during the period covered by the report; and
(iii)
a report of any material transactions between the partnership and the General Partner or any of its affiliates, including fees
or compensation paid by the partnership and the services performed by the General Partner or any such affiliate for such fees or
compensation.
Quarterly Reports
. Within 45
days after the end of each quarter of each fiscal year, the General Partner shall cause to be delivered to each limited partner
who was a limited partner at any time during the quarter then ended, a quarterly report containing a balance sheet and statement
of income for the period covered by the report, each of which may be unaudited but shall be certified by the General Partner as
fairly presenting the financial position and results of operations of the partnership during the period covered by the report.
The report shall also contain a description of any material event regarding the business of the partnership during the period covered
by the report.
Monthly Reports
. Within 30
days after the end of each month, the General Partner shall cause to be posted on its website and upon request, to be delivered
to each limited partner who was a limited partner at any time during the month then ended, a monthly report containing an account
statement, which will include a statement of income (loss) and a statement of changes in NAV, for the prescribed period. In addition,
the account statement will disclose any material business dealings between the partnership, General Partner, commodity trading
advisor (if any), futures commission merchant, or the principals thereof that previously have not been disclosed in this prospectus
or any amendment thereto, other account statements or annual reports.
USBO will provide information to its unitholders
to the extent required by applicable SEC, CFTC, and NYSE Arca requirements. An issuer, such as USBO, of exchange-traded securities
may not always readily know the identities of the investors who own those securities. USBO will post the same information that
would otherwise be provided in USBO's reports to limited partners described above including its monthly account statements,
which will include, without limitation, USBO's NAV, on USBO's website
www.unitedstatesbrentoilfund.com
.
Fiscal Year
The fiscal year of USBO is the calendar
year. The General Partner may select an alternate fiscal year.
Governing Law; Consent to Delaware Jurisdiction
The rights of the General Partner, USBO,
DTC (as registered owner of USBO's global certificate for units) and the unitholders, are governed by the laws of the State
of Delaware. The General Partner, USBO and DTC and, by accepting units, each DTC Participant and each unitholder, consent to the
jurisdiction of the courts of the State of Delaware and any federal courts located in Delaware. Such consent is not required for
any person to assert a claim of Delaware jurisdiction over the General Partner or USBO.
Security Ownership of Principal Unitholders and Management
None of the directors or executive officers
of the General Partner, nor the employees of USBO own any units of USBO. In addition, USBO is not aware of any 5% holder of its
units.
Legal Matters
Litigation and Claims
Within the past 5 years of the date of
this prospectus, there have been no material administrative, civil or criminal actions against the General Partner, underwriter,
or any principal or affiliate of either of them. This includes any actions pending, on appeal, concluded, threatened, or otherwise
known to them.
Legal Opinion
Reed Smith LLP is counsel to advise USBO
and the General Partner with respect to the preparation of units being offered hereby and has passed upon the validity of the units
being issued hereunder. Reed Smith LLP has also provided the General Partner with its opinion with respect to federal income tax
matters addressed herein.
Experts
Spicer Jeffries LLP, an independent registered
public accounting firm, has audited the financial statements of United States Brent Oil Fund, LP, at December 31, 2012, 2011 and
2010 that appear in the annual report on Form 10-K that is incorporated by reference. The financial statements in the 10-K were
included herein in reliance upon the report of March __, 2013 given on its authority of such firm as experts in accounting and
auditing.
74
Privacy Policy
USBO and the General Partner may collect
or have access to certain nonpublic personal information about current and former investors. Nonpublic personal information may
include information received from investors, such as an investor's name, social security number and address, as well as information
received from brokerage firms about investor holdings and transactions in units of USBO.
USBO and the General Partner do not disclose
nonpublic personal information except as required by law or as described in their Privacy Policy. In general, USBO and the General
Partner restrict access to the nonpublic personal information they collect about investors to those of their and their affiliates'
employees and service providers who need access to such information to provide products and services to investors.
USBO and the General Partner maintain safeguards
that comply with federal law to protect investors' nonpublic personal information. These safeguards are reasonably designed
to (1) ensure the security and confidentiality of investors' records and information, (2) protect against any anticipated
threats or hazards to the security or integrity of investors' records and information, and (3) protect against unauthorized
access to or use of investors' records or information that could result in substantial harm or inconvenience to any investor.
Third-party service providers with whom USBO and the General Partner share nonpublic personal information about investors must
agree to follow appropriate standards of security and confidentiality, which includes safeguarding such nonpublic personal information
physically, electronically and procedurally.
A copy of USBO and the General Partner's
current Privacy Policy is provided to investors annually and is also available upon request.
U.S. Federal Income Tax Considerations
The following discussion summarizes the
material U.S. federal income tax consequences of the purchase, ownership and disposition of units in USBO, and the U.S. federal
income tax treatment of USBO, as of the date hereof. This discussion is applicable to a beneficial owner of units who purchases
units in the offering to which this prospectus relates, including a beneficial owner who purchases units from an Authorized Purchaser.
Except where noted otherwise, it deals only with units held as capital assets and does not deal with special situations, such as
those of dealers in securities or currencies, financial institutions, tax-exempt entities, insurance companies, persons holding
units as a part of a position in a "straddle" or as part of a "hedging," "conversion" or other
integrated transaction for U.S. federal income tax purposes, traders in securities or commodities that elect to use a mark-to-market
method of accounting, or holders of units whose "functional currency" is not the U.S. dollar. Furthermore, the discussion
below is based upon the provisions of the Internal Revenue Code of 1986, as amended (the "Code"), and regulations ("Treasury
Regulations"), rulings and judicial decisions thereunder as of the date hereof, and such authorities may be repealed, revoked
or modified so as to result in U.S. federal income tax consequences different from those discussed below.
Persons considering the purchase, ownership
or disposition of units should consult their own tax advisors concerning the U.S. federal income tax consequences in light of their
particular situations as well as any consequences arising under the laws of any other taxing jurisdiction. As used herein, a "U.S.
unitholder" of a unit means a beneficial owner of a unit that is, for U.S. federal income tax purposes, (i) a citizen
or resident of the United States, (ii) a corporation or partnership created or organized in or under the laws of the United
States or any political subdivision thereof, (iii) an estate the income of which is subject to U.S. federal income taxation
regardless of its source or (iv) a trust (X) that is subject to the supervision of a court within the United States and
the control of one or more United States persons as described in section 7701(a)(30) of the Code or (Y) that has a valid election
in effect under applicable Treasury Regulations to be treated as a United States person. A "Non-U.S. unitholder" is
a holder that is not a U.S. unitholder. If a partnership holds our units, the tax treatment of a partner will generally depend
upon the status of the partner and the activities of the partnership. If you are a partner of a partnership holding our units,
you should consult your own tax advisor regarding the tax consequences.
The General Partner of USBO has received
the opinion of Reed Smith LLP, counsel to USBO, that the material U.S. federal income tax consequences to USBO and to U.S. unitholders
and Non-U.S. unitholders will be as described below. In rendering its opinion, Reed Smith LLP has relied on the facts described
in this prospectus as well as certain factual representations made by USBO and the General Partner. The opinion of Reed Smith LLP
is not binding on the Internal Revenue Service ("IRS"), and as a result, the IRS may not agree with the tax positions
taken by USBO. If challenged by the IRS, USBO's tax positions might not be sustained by the courts. No ruling has been requested
from the IRS with respect to any matter affecting USBO or prospective investors.
EACH PROSPECTIVE INVESTOR IS ADVISED TO
CONSULT ITS OWN TAX ADVISOR AS TO HOW THE U.S. FEDERAL INCOME TAX CONSEQUENCES OF AN INVESTMENT IN USBO APPLY TO YOU AND AS TO
HOW THE APPLICABLE STATE, LOCAL OR FOREIGN TAXES APPLY TO YOU.
75
Tax Status of USBO
USBO is organized and operates as a limited
partnership in accordance with the provisions of the LP Agreement and applicable state law. Under the Code, an entity classified
as a partnership that is deemed to be a "publicly traded partnership" is generally taxable as a corporation for U.S.
federal income tax purposes. The Code provides an exception to this general rule for a publicly traded partnership whose gross
income for each taxable year of its existence consists of at least 90% "qualifying income" ("qualifying income
exception"). For this purpose, section 7704 defines "qualifying income" as including, in pertinent part, interest
(other than from a financial business), dividends and gains from the sale or disposition of capital assets held for the production
of interest or dividends. In addition, in the case of a partnership a principal activity of which is the buying and selling of
commodities (other than as inventory) or of futures, forwards and options with respect to commodities, "qualifying income"
includes income and gains from such commodities and futures, forwards and options with respect to commodities. USBO and the General
Partner have represented the following to Reed Smith LLP:
•
At least 90% of USBO's gross income for each taxable year will constitute "qualifying income" within the
meaning of Code section 7704 (as described above);
•
USBO will be organized and operated in accordance with its governing agreements and applicable law;
•
USBO has not elected, and will not elect, to be classified as a corporation for U.S. federal income tax purposes.
Based in part on these representations,
Reed Smith LLP is of the opinion that USBO classifies as a partnership for U.S. federal income tax purposes and that it is not
taxable as a corporation for such purposes.
If USBO failed to satisfy the qualifying
income exception in any year, other than a failure that is determined by the IRS to be inadvertent and that is cured within a reasonable
time after discovery, USBO would be taxable as a corporation for U.S. federal income tax purposes and would pay U.S. federal income
tax on its income at regular corporate rates. In that event, unitholders would not report their share of USBO's income or
loss on their returns. In addition, distributions to unitholders would be treated as dividend income to the extent of USBO's
current and accumulated earnings and profits. To the extent a distribution exceeded USBO's earnings and profits, the distribution
would be treated as a return of capital to the extent of a unitholder's basis in its units, and thereafter as gain from the
sale of units. Accordingly, if USBO were to be taxable as a corporation, it would likely have a material adverse effect on the
economic return from an investment in USBO and on the value of the units.
The remainder of this summary assumes that
USBO is classified as a partnership for U.S. federal income tax purposes and that it is not taxable as a corporation.
U.S. Unitholders
Tax Consequences of Ownership of Units
Taxation of USBO's Income
. No
U.S. federal income tax is paid by USBO on its income. Instead, USBO files annual information returns, and each U.S. unitholder
is required to report on its U.S. federal income tax return its allocable share of the income, gain, loss and deduction of USBO.
For example, unitholders must take into account their share of ordinary income realized by USBO from accruals of interest on Treasuries
and other investments, and their share of gain from Futures Contracts and Other Crude Oil-Related Investments. These items must
be reported without regard to the amount (if any) of cash or property the unitholder receives as a distribution from USBO during
the taxable year. Consequently, a unitholder may be allocated income or gain by USBO but receive no cash distribution with which
to pay its tax liability resulting from the allocation, or may receive a distribution that is insufficient to pay such liability.
Because the General Partner currently does not intend to make distributions, it is likely that in any year USBO realizes net income
and/or gain that a U.S. unitholder will be required to pay taxes on its allocable share of such income or gain from sources other
than USBO distributions. In addition, for taxable years beginning after December 31, 2012, individuals with income in excess
of $200,000 ($250,000 in the case of married individuals filing jointly) and certain estates and trusts are subject to an additional
3.8% tax on their "net investment income," which generally includes net income from interest, dividends, annuities,
royalties, and rents, and net capital gains (other than certain amounts earned from trades or businesses).
Allocations of USBO's Profit and
Loss
. Under Code section 704, the determination of a partner's distributive share of any item of income, gain, loss,
deduction or credit is governed by the applicable organizational document unless the allocation provided by such document lacks
"substantial economic effect." An allocation that lacks substantial economic effect nonetheless will be respected if
it is in accordance with the partners' interests in the partnership, determined by taking into account all facts and circumstances
relating to the economic arrangements among the partners.
76
In general, USBO applies a monthly closing-of-the-books
convention in determining allocations of economic profit or loss to unitholders. Income, gain, loss and deduction are determined
on a monthly "mark-to-market" basis, taking into account our accrued income and deductions and realized and unrealized
gains and losses for the month. These items are allocated among the holders of units in proportion to the number of units owned
by them as of the close of business on the last business day of the month. Items of taxable income, deduction, gain, loss and credit
recognized by USBO for U.S. federal income tax purposes for any taxable year will be allocated among holders in a manner that equitably
reflects the allocation of economic profit or loss. USBO has made the election permitted by section 754 of the Code, which election
is irrevocable without the consent of the Service. The effect of this election is that when a secondary market sale of our units
occur, we adjust the purchaser's proportionate share of the tax basis of our assets to fair market value, as reflected in
the price paid for the units, as if the purchaser had directly acquired an interest in our assets. The section 754 election is
intended to eliminate disparities between a partner's basis in its partnership interest and its share of the tax bases of
the partnership's assets, so that the partner's allocable share of taxable gain or loss on a disposition of an asset
will correspond to its share of the appreciation or depreciation in the value of the asset since it acquired its interest. Depending
on the price paid for units and the tax bases of USBO's assets at the time of the purchase, the effect of the section 754
election on a purchaser of units may be favorable or unfavorable.
USBO applies certain assumptions and conventions
in determining and allocating items for tax purposes in order to reduce the complexity and costs of administration. The General
Partner believes that application of these assumptions and conventions is consistent with the intent of the partnership provisions
of the Code, and that the resulting allocations have substantial economic effect or otherwise are respected as being in accordance
with unitholders' interests in USBO for U.S. federal income tax purposes.
However, the Code and Treasury Regulations
do not expressly permit adoption of these assumptions and conventions, and Reed Smith LLP is therefore unable to opine on the validity
of our allocation method. It is possible that the IRS could successfully challenge this method and require a unitholder to report
a greater or lesser share of items of income, gain, loss, deduction, or credit than if our method were respected. The General Partner
is authorized to revise our allocation method to conform to any method permitted under future Treasury Regulations.
The assumptions and conventions used in
making tax allocations may cause a unitholder to be allocated more or less income or loss for U.S. federal income tax purposes
than its proportionate share of the economic income or loss realized by USBO during the period it held its units. This "mismatch"
between taxable and economic income or loss in some cases may be temporary, reversing itself in a later year when the units are
sold, but could be permanent. For example, a unitholder could be allocated income accruing before it purchased its units, resulting
in an increase in the basis of the units (see "
Tax Basis of Units
", below). On a subsequent disposition of the
units, the additional basis might produce a capital loss the deduction of which may be limited (see "Limitations on Deductibility
of Losses and Certain Expenses", below).
Mark to Market of Certain Exchange-Traded
Contracts
. For U.S. federal income tax purposes, USBO generally is required to use a "mark-to-market" method
of accounting under which unrealized gains and losses on instruments constituting "section 1256 contracts" are recognized
currently. A section 1256 contract is defined as: (1) a futures contract that is traded on or subject to the rules of a national
securities exchange which is registered with the SEC, a domestic board of trade designated as a contract market by the CFTC, or
any other board of trade or exchange designated by the Secretary of the Treasury, and with respect to which the amount required
to be deposited and the amount that may be withdrawn depends on a system of "marking to market"; (2) a forward
contract on exchange-traded foreign currencies, where the contracts are traded in the interbank market; (3) a non-equity option
traded on or subject to the rules of a qualified board or exchange; (4) a dealer equity option; or (5) a dealer securities
futures contract.
Under these rules, section 1256 contracts
held by USBO at the end of each taxable year, including for example Futures Contracts and options on Futures Contracts traded on
a U.S. exchange or board of trade or certain foreign exchanges, are treated as if they were sold by USBO for their fair market
value on the last business day of the taxable year. A unitholder's distributive share of USBO's net gain or loss with
respect to each section 1256 contract generally is treated as long-term capital gain or loss to the extent of 60 percent thereof,
and as short-term capital gain or loss to the extent of 40 percent thereof, without regard to the actual holding period.
Many of USBO's Futures Contracts
and some their other commodity interests will qualify as "section 1256 contracts" under the Code. Gain or loss recognized
through disposition, termination or marking-to-market of USBO's section 1256 contracts will be subject to 60-40 treatment
and allocated to unitholders in accordance with the monthly allocation convention. Under recently enacted legislation, cleared
swaps and other commodity swaps will most likely not qualify as section 1256 contracts. If a commodity swap is not treated as a
section 1256 contract, any gain or loss on the swap recognized at the time of disposition or termination will be long-term or short-term
capital gain or loss depending on the holding period of the swap.
Limitations on Deductibility of Losses
and Certain Expenses
. A number of different provisions of the Code may defer or disallow the deduction of losses or expenses
allocated to you by USBO, including but not limited to those described below.
A unitholder's deduction of its allocable
share of any loss of USBO will be limited to the lesser of (1) the tax basis in its units or (2) in the case of a unitholder
that is an individual or a closely held corporation, the amount which the unitholder is considered to have "at risk"
with respect to our activities. In general, the amount at risk will be your invested capital plus your share of any recourse debt
of USBO for which you are liable. Losses in excess of the amount at risk must be deferred until years in which USBO generates additional
taxable income against which to offset such carryover losses or until additional capital is placed at risk.
77
Noncorporate taxpayers are permitted to
deduct capital losses only to the extent of their capital gains for the taxable year plus $3,000 of other income. Unused capital
losses can be carried forward and used to offset capital gains in future years. In addition, a noncorporate taxpayer may elect
to carry back net losses on section 1256 contracts to each of the three preceding years and use them to offset section 1256 contract
gains in those years, subject to certain limitations. Corporate taxpayers generally may deduct capital losses only to the extent
of capital gains, subject to special carryback and carryforward rules.
Otherwise deductible expenses incurred
by noncorporate taxpayers constituting "miscellaneous itemized deductions," generally including investment-related
expenses (other than interest and certain other specified expenses), are deductible only to the extent they exceed 2 percent of
the taxpayer's adjusted gross income for the year. Although the matter is not free from doubt, we believe management fees
we pay to the General Partner and other expenses we incur constitute investment-related expenses subject to the miscellaneous itemized
deduction limitation, rather than expenses incurred in connection with a trade or business.
Noncorporate unitholders generally may
deduct "investment interest expense" only to the extent of their "net investment income." Investment interest
expense of a unitholder will generally include any interest accrued by USBO and any interest paid or accrued on direct borrowings
by a unitholder to purchase or carry its units, such as interest with respect to a margin account. Net investment income generally
includes gross income from property held for investment (including "portfolio income" under the passive loss rules
but not, absent an election, long-term capital gains or certain qualifying dividend income) less deductible expenses other than
interest directly connected with the production of investment income.
To the extent that we allocate losses or
expenses to you that must be deferred or disallowed as a result of these or other limitations in the Code, you may be taxed on
income in excess of your economic income or distributions (if any) on your units. As one example, you could be allocated and required
to pay tax on your share of interest income accrued by USBO for a particular taxable year, and in the same year be allocated a
share of a capital loss that you cannot deduct currently because you have insufficient capital gains against which to offset the
loss. As another example, you could be allocated and required to pay tax on your share of interest income and capital gain for
a year, but be unable to deduct some or all of your share of management fees and/or margin account interest incurred by you with
respect to your units. Unitholders are urged to consult their own professional tax advisors regarding the effect of limitations
under the Code on your ability to deduct your allocable share of USBO's losses and expenses.
Tax Basis of Units
A unitholder's tax basis in its units
is important in determining (1) the amount of taxable gain or loss it will realize on the sale or other disposition of its
units, (2) the amount of non-taxable distributions that it may receive from USBO and (3) its ability to utilize its distributive
share of any losses of USBO on its tax return. A unitholder's initial tax basis in its units will equal its cost for the
units plus its share of USBO's liabilities (if any) at the time of purchase. In general, a unitholder's "share"
of those liabilities will equal the sum of (i) the entire amount of any otherwise nonrecourse liability of USBO as to which
the unitholder or an affiliate of the unitholder is the creditor (a "partner nonrecourse liability") and (ii) a
pro rata
share of any nonrecourse liabilities of USBO that are not partner nonrecourse liabilities as to any unitholder.
A unitholder's tax basis in its units
generally will be (1) increased by (a) its allocable share of USBO's taxable income and gain and (b) any additional
contributions by the unitholder to USBO and (2) decreased (but not below zero) by (a) its allocable share of USBO's
tax deductions and losses and (b) any distributions by USBO to the unitholder. For this purpose, an increase in a unitholder's
share of USBO's liabilities will be treated as a contribution of cash by the unitholder to USBO and a decrease in that share
will be treated as a distribution of cash by USBO to the unitholder. Pursuant to certain IRS rulings, a unitholder will be required
to maintain a single, "unified" basis in all units that it owns. As a result, when a unitholder that acquired its units
at different prices sells less than all of its units, such unitholder will not be entitled to specify particular units (
e.g.
,
those with a higher basis) as having been sold. Rather, it must determine its gain or loss on the sale by using an "equitable
apportionment" method to allocate a portion of its unified basis in its units to the units sold.
Treatment of USBO Distributions
. If
USBO makes non-liquidating distributions to unitholders, such distributions generally will not be taxable to the unitholders for
U.S. federal income tax purposes except to the extent that the sum of (i) the amount of cash and (ii) the fair market
value of marketable securities distributed exceeds the unitholder's adjusted basis of its interest in USBO immediately before
the distribution. Any cash distributions in excess of a unitholder's tax basis generally will be treated as gain from the
sale or exchange of units.
Constructive Termination of the Partnership
. We
will be considered to have been terminated for tax purposes if there is a sale or exchange of 50 percent or more of the total interests
in our units within a 12-month period. A termination would result in the closing of our taxable year for all unitholders. In the
case of a unitholder reporting on a taxable year other than a fiscal year ending December 31, the closing of our taxable year
may result in more than 12 months of our taxable income or loss being includable in its taxable income for the year of termination.
We would be required to make new tax elections after a termination. A termination could result in tax penalties if we were unable
to determine that the termination had occurred. Moreover, a termination might either accelerate the application of, or subject
us to, any tax legislation enacted before the termination.
78
Tax Consequences of Disposition of Units
If a unitholder sells its units, it will
recognize gain or loss equal to the difference between the amount realized and its adjusted tax basis for the units sold. A unitholder's
amount realized will be the sum of the cash or the fair market value of other property received plus its share of any USBO debt
outstanding.
Gain or loss recognized by a unitholder
on the sale or exchange of units held for more than one year will generally be taxable as long-term capital gain or loss; otherwise,
such gain or loss will generally be taxable as short-term capital gain or loss. A special election is available under the Treasury
Regulations that will allow unitholders to identify and use the actual holding periods for the units sold for purposes of determining
whether the gain or loss recognized on a sale of units will give rise to long-term or short-term capital gain or loss. It is expected
that most unitholders will be eligible to elect, and generally will elect, to identify and use the actual holding period for units
sold. If a unitholder fails to make the election or is not able to identify the holding periods of the units sold, the unitholder
will have a split holding period in the units sold. Under such circumstances, a unitholder will be required to determine its holding
period in the units sold by first determining the portion of its entire interest in USBO that would give rise to long-term capital
gain or loss if its entire interest were sold and the portion that would give rise to short-term capital gain or loss if the entire
interest were sold. The unitholder would then treat each unit sold as giving rise to long-term capital gain or loss and short-term
capital gain or loss in the same proportions as if it had sold its entire interest in USBO.
Under Section 751 of the Code, a portion
of a unitholder's gain or loss from the sale of units (regardless of the holding period for such units), will be separately
computed and taxed as ordinary income or loss to the extent attributable to "unrealized receivables" or "inventory"
owned by USBO. The term "unrealized receivables" includes, among other things, market discount bonds and short-term
debt instruments to the extent such items would give rise to ordinary income if sold by USBO.
If some or all of your units are lent by
your broker or other agent to a third party — for example, for use by the third party in covering a short sale — you
may be considered as having made a taxable disposition of the loaned units, in which case —
•
you may recognize taxable gain or loss to the same extent as if you had sold the units for cash;
•
any of USBO's income, gain, loss or deduction allocable to those units during the period of the loan will not be reportable
by you for tax purposes; and
•
any distributions you receive with respect to the units will be fully taxable, most likely as ordinary income.
Unitholders desiring to avoid these and
other possible consequences of a deemed disposition of their units should consider modifying any applicable brokerage account agreements
to prohibit the lending of their units.
Other Tax Matters
Information Reporting
. We report
tax information to the unitholders and the IRS. Unitholders who have become additional limited partners are treated as partners
for U.S. federal income tax purposes. The IRS has ruled that assignees of partnership interests who have not been admitted to a
partnership as partners but who have the capacity to exercise substantial dominion and control over the assigned partnership interests
will be considered partners for U.S. federal income tax purposes. On the basis of such ruling, except as otherwise provided herein,
we treat the following persons as partners for U.S. federal income tax purposes: (1) assignees of units who are pending admission
as limited partners, and (2) unitholders whose units are held in street name or by another nominee and who have the right
to direct the nominee in the exercise of all substantive rights attendant to the ownership of their units. USBO will furnish unitholders
each year with tax information on IRS Schedule K-1 (Form 1065), which will be used by the unitholders in completing their tax returns.
Persons who hold an interest in USBO as
a nominee for another person are required to furnish to us the following information: (1) the name, address and taxpayer identification
number of the beneficial owner and the nominee; (2) whether the beneficial owner is (a) a person that is not a U.S. person,
(b) a foreign government, an international organization or any wholly-owned agency or instrumentality of either of the foregoing,
or (c) a tax-exempt entity; (3) the amount and description of units acquired or transferred for the beneficial owner;
and (4) certain information including the dates of acquisitions and transfers, means of acquisitions and transfers, and acquisition
cost for purchases, as well as the amount of net proceeds from sales. Brokers and financial institutions are required to furnish
additional information, including whether they are U.S. persons and certain information on units they acquire, hold or transfer
for their own account. A penalty of $100 per failure, up to a maximum of $1,500,000 per calendar year, is imposed by the Internal
Revenue Code of 1986, as amended for failure to report such information to us. The nominee is required to supply the beneficial
owner of the units with the information furnished to us.
Partnership Audit Procedures
. The
IRS may audit the U.S. federal income tax returns filed by USBO. Adjustments resulting from any such audit may require each unitholder
to adjust a prior year's tax liability and could result in an audit of the unitholder's own return. Any audit of a
unitholder's return could result in adjustments of non-partnership items as well as USBO items. Partnerships are generally
treated as separate entities for purposes of U.S. federal tax audits, judicial review of administrative adjustments by the IRS,
and tax settlement proceedings. The tax treatment of partnership items of income, gain, loss and deduction are determined at the
partnership level in a unified partnership proceeding rather than in separate proceedings with the unitholders. The Code provides
for one unitholder to be designated as the "tax matters partner" to represent the partnership purposes of these proceedings.
The LP Agreement appoints the General Partner as the tax matters partner of USBO.
79
Tax Shelter Disclosure Rules
. In
certain circumstances the Code and Treasury Regulations require that the IRS be notified of taxable transactions through a disclosure
statement attached to a taxpayer's U.S. federal income tax return. These disclosure rules may apply to transactions irrespective
of whether they are structured to achieve particular tax benefits. They could require disclosure by USBO or unitholders if a unitholder
incurs a loss in excess a specified threshold from a sale or redemption of its units or possibly in other circumstances. While
these rules generally do not require disclosure of a loss recognized on the disposition of an asset in which the taxpayer has a
"qualifying basis" (generally a basis equal to the amount of cash paid by the taxpayer for such asset), they apply
to a loss recognized with respect to interests in a pass-through entity, such as the units, even if the taxpayer's basis
in such interests is equal to the amount of cash it paid. In addition, under recently enacted legislation, significant penalties
may be imposed in connection with a failure to comply with these reporting requirements.
Investors should consult their own
tax advisors concerning the application of these reporting requirements to their specific situation
.
Tax-Exempt Organizations
. Subject
to numerous exceptions, qualified retirement plans and individual retirement accounts, charitable organizations and certain other
organizations that otherwise are exempt from U.S. federal income tax (collectively "exempt organizations") nonetheless
are subject to the tax on unrelated business taxable income ("UBTI"). Generally, UBTI means the gross income derived
by an exempt organization from a trade or business that it regularly carries on, the conduct of which is not substantially related
to the exercise or performance of its exempt purpose or function, less allowable deductions directly connected with that trade
or business. If USBO were to regularly carry on (directly or indirectly) a trade or business that is unrelated with respect to
an exempt organization unitholder, then in computing its UBTI, the unitholder must include its share of (1) USBO's gross
income from the unrelated trade or business, whether or not distributed, and (2) USBO's allowable deductions directly
connected with that gross income.
UBTI generally does not include dividends,
interest, or payments with respect to securities loans or gains from the sale of property (other than property held for sale to
customers in the ordinary course of a trade or business). Nonetheless, income on, and gain from the disposition of, "debt-financed
property" is UBTI. Debt-financed property generally is income-producing property (including securities), the use of which
is not substantially related to the exempt organization's tax-exempt purposes, and with respect to which there is "acquisition
indebtedness" at any time during the taxable year (or, if the property was disposed of during the taxable year, the 12-month
period ending with the disposition). Acquisition indebtedness includes debt incurred to acquire property, debt incurred before
the acquisition of property if the debt would not have been incurred but for the acquisition, and debt incurred subsequent to the
acquisition of property if the debt would not have been incurred but for the acquisition and at the time of acquisition the incurrence
of debt was foreseeable. The portion of the income from debt-financed property attributable to acquisition indebtedness is equal
to the ratio of the average outstanding principal amount of acquisition indebtedness over the average adjusted basis of the property
for the year. USBO currently does not anticipate that it will borrow money to acquire investments; however, USBO cannot be certain
that it will not borrow for such purpose in the future. In addition, an exempt organization unitholder that incurs acquisition
indebtedness to purchase its units in USBO may have UBTI.
The U.S. federal tax rate applicable to
an exempt organization unitholder on its UBTI generally will be either the corporate or trust tax rate, depending upon the unitholder's
form of organization. USBO may report to each such unitholder information as to the portion, if any, of the unitholder's
income and gains from USBO for any year that will be treated as UBTI; the calculation of that amount is complex, and there can
be no assurance that USBO's calculation of UBTI will be accepted by the IRS. An exempt organization unitholder will be required
to make payments of estimated U.S. federal income tax with respect to its UBTI.
Regulated Investment Companies
. Interests
in and income from "qualified publicly traded partnerships" satisfying certain gross income tests are treated as qualifying
assets and income, respectively, for purposes of determining eligibility for regulated investment company ("RIC") status.
A RIC may invest up to 25% of its assets in interests in a qualified publicly traded partnership. The determination of whether
a publicly traded partnership such as USBO is a qualified publicly traded partnership is made on an annual basis. USBO expects
to be a qualified publicly traded partnership in each of its taxable years. However, such qualification is not assured.
Non-U.S. Unitholders
Generally, non-U.S. persons who derive
U.S. source income or gain from investing or engaging in a U.S. business are taxable on two categories of income. The first category
consists of amounts that are fixed, determinable, annual or periodic income, such as interest, dividends and rent that are not
connected with the operation of a U.S. trade or business ("FDAP"). The second category is income that is effectively
connected with the conduct of a U.S. trade or business ("ECI"). FDAP income (other than interest that is considered
"portfolio interest") is generally subject to a 30 percent withholding tax, which may be reduced for certain categories
of income by a treaty between the U.S. and the recipient's country of residence. In contrast, ECI is generally subject to
U.S. tax on a net basis at graduated rates upon the filing of a U.S. tax return. Where a non-U.S. person has ECI as a result of
an investment in a partnership, the ECI is subject to a withholding tax at a rate of 35 percent for both individual and corporate
unitholders.
80
Withholding on Allocations and Distributions
. The
Code provides that a non-U.S. person who is a partner in a partnership that is engaged in a U.S. trade or business during a taxable
year will also be considered to be engaged in a U.S. trade or business during that year. Classifying an activity by a partnership
as an investment or an operating business is a factual determination. Under certain safe harbors in the Code, an investment fund
whose activities consist of trading in stocks, securities, or commodities for its own account generally will not be considered
to be engaged in a U.S. trade or business unless it is a dealer is such stocks, securities, or commodities. This safe harbor applies
to investments in commodities only if the commodities are of a kind customarily dealt in on an organized commodity exchange and
if the transaction is of a kind customarily consummated at such place. Although the matter is not free from doubt, USBO believes
that the activities directly conducted by USBO do not result in USBO being engaged in a trade or business within the United States.
However, there can be no assurance that the IRS would not successfully assert that USBO's activities constitute a U.S. trade
or business.
In the event that USBO's activities
were considered to constitute a U.S. trade or business, USBO would be required to withhold at the highest rate specified in Code
section 1 (currently 35 percent) on allocations of our income to non-U.S. unitholders other than corporations and the highest rate
specified in Code section 11(b) on allocations of our income to corporate non-U.S. unitholders, when such income is distributed.
A Non-U.S. unitholder with ECI will generally be required to file a U.S. federal income tax return, and the return will provide
the non-U.S. unitholder with the mechanism to seek a refund of any withholding in excess of such unitholder's actual U.S.
federal income tax liability.
If USBO is not treated as engaged in a
U.S. trade or business, a non-U.S. unitholder may nevertheless be treated as having FDAP income, which would be subject to a 30
percent withholding tax (possibly subject to reduction by treaty), with respect to some or all of its distributions from USBO or
its allocable share of USBO income.
Any amount withheld by USBO on behalf of
a non-U.S. unitholder will be treated as a distribution to the non-U.S. unitholder to the extent possible. In some cases, USBO
may not be able to match the economic cost of satisfying its withholding obligations to a particular non-U.S. unitholder, which
may result in such cost being borne by USBO generally and, accordingly, by all unitholders.
To the extent any interest income allocated
to a non-U.S. unitholder that otherwise constitutes FDAP is considered "portfolio interest," neither the allocation
of such interest income to the non-U.S. unitholder nor a subsequent distribution of such interest income to the non-U.S. unitholder
will be subject to withholding, provided that the non-U.S. unitholder is not otherwise engaged in a trade or business in the U.S.
and provides USBO with a timely and properly completed and executed IRS Form W-8BEN or other applicable form. In general, "portfolio
interest" is interest paid on debt obligations issued in registered form, unless the "recipient" owns 10 percent
or more of the voting power of the issuer.
Most of USBO's interest income qualifies
as "portfolio interest." In order for USBO to avoid withholding on any interest income allocable to non-U.S. unitholders
that would qualify as "portfolio interest," it will be necessary for all non-U.S. unitholders to provide USBO with
a timely and properly completed and executed Form W-8BEN (or other applicable form). If a non-U.S. unitholder fails to provide
a properly completed Form W-8BEN, the General Partner may request that the non-U.S. unitholder provide, within 15 days after the
request by the General Partner, a properly completed Form W-8BEN. If a non-U.S. unitholder fails to comply with this request, the
units owned by such non-U.S. unitholder will be subject to redemption.
Gain from Sale of Units
. Gain
from the sale or exchange of the units may be taxable to a non-U.S. unitholder if the non-U.S. unitholder is a nonresident alien
individual who is present in the U.S. for 183 days or more during the taxable year. In such case, the nonresident alien individual
will be subject to a 30 percent withholding tax on the amount of such individual's gain.
Branch Profits Tax on Corporate Non-U.S.
Unitholders
. In addition to the taxes noted above, any non-U.S. unitholders that are corporations may also be subject
to an additional tax, the branch profits tax, at a rate of 30 percent. The branch profits tax is imposed on a non-U.S. corporation's
dividend equivalent amount, which generally consists of the corporation's after-tax earnings and profits that are effectively
connected with the corporation's U.S. trade or business but are not reinvested in a U.S. business. This tax may be reduced
or eliminated by an income tax treaty between the United States and the country in which the non-U.S. unitholder is a "qualified
resident."
Certain information reporting and withholding
requirement.
Recently enacted legislation that becomes effective after December 31, 2012 generally imposes a 30% withholding
tax on payments of certain types of income to foreign financial institutions that fail to enter into an agreement with the United
States Treasury to report certain required information with respect to accounts held by U.S. persons (or held by foreign entities
that have U.S. persons as substantial owners). The IRS and the Treasury Department have announced that the full implementation
of these rules will be phased in over the next several years, including the obligation to withhold. The types of income subject
to the tax include U.S. source interest and dividends and the gross proceeds from the sale of any property that could produce U.S.-source
interest or dividends. The information required to be reported includes the identity and taxpayer identification number of each
account holder that is a U.S. person and transaction activity within the holder's account. In addition, subject to certain
exceptions, this legislation also imposes a 30% withholding tax on payments to foreign entities that are not financial institutions
unless the foreign entity certifies that it does not have a greater than 10% U.S. owner or provides the withholding agent with
identifying information on each greater 10% U.S. owner. When these provisions become effective, depending on the status of a Non-U.S.
Shareholder and the status of the intermediaries through which it holds Shares, a Non-U.S. Shareholder could be subject to this
30% withholding tax with respect to distributions on its Shares and proceeds from the sale of its Shares. Under certain circumstances,
a Non-U.S. Shareholder might be eligible for refund or credit of such taxes.
81
Prospective non-U.S. unitholders should
consult their tax advisor with regard to these and other issues unique to non-U.S. unitholders.
Backup Withholding
USBO may be required to withhold U.S. federal
income tax ("backup withholding") from all taxable distributions payable to (1) any unitholder who fails to furnish
to USBO with his, her or its correct taxpayer identification number or a certificate that the unitholder is exempt from backup
withholding, and (2) any unitholder with respect to whom the IRS notifies USBO that the unitholder is subject to backup withholding.
Backup withholding is not an additional tax and may be returned or credited against a taxpayer's regular U.S. federal income
tax liability if appropriate information is provided to the IRS.
Other Tax Considerations
In addition to U.S. federal income taxes,
unitholders may be subject to other taxes, such as state and local income taxes, unincorporated business taxes, business franchise
taxes, and estate, inheritance or intangible taxes that may be imposed by the various jurisdictions in which USBO does business
or owns property or where the unitholders reside. Although an analysis of those various taxes is not presented here, each prospective
unitholder should consider their potential impact on its investment in USBO. It is each unitholder's responsibility to file
the appropriate U.S. federal, state, local, and foreign tax returns. Reed Smith LLP has not provided an opinion concerning any
aspects of state, local or foreign tax or U.S. federal tax other than those U.S. federal income tax issues discussed herein.
Investment by ERISA Accounts
General
Most employee benefit plans and individual
retirement accounts ("IRAs") are subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA")
or the Internal Revenue Code of 1986, as amended (the "Code"), or both. This section discusses certain considerations
that arise under ERISA and the Code that a fiduciary of an employee benefit plan as defined in ERISA or a plan as defined in Section 4975
of the Code who has investment discretion should take into account before deciding to invest the plan's assets in USBO. Employee
benefit plans and plans are collectively referred to below as plans, and fiduciaries with investment discretion are referred to
below as plan fiduciaries.
This summary is based on the provisions
of ERISA and the Code as of the date hereof. This summary is not intended to be complete, but only to address certain questions
under ERISA and the Code likely to be raised by your advisors. The summary does not include state or local law.
Potential plan investors are urged to consult
with their own professional advisors concerning the appropriateness of an investment in USBO and the manner in which units should
be purchased.
Special Investment Considerations
Each plan fiduciary must consider the facts
and circumstances that are relevant to an investment in USBO, including the role that an investment in USBO would play in the plan's
overall investment portfolio. Each plan fiduciary, before deciding to invest in USBO, must be satisfied that the investment is
prudent for the plan, that the investments of the plan are diversified so as to minimize the risk of large losses and that an investment
in USBO complies with the terms of the plan.
USBO and Plan Assets
A regulation issued under ERISA contains
rules for determining when an investment by a plan in an equity interest of a limited partnership will result in the underlying
assets of the partnership being deemed plan assets for purposes of ERISA and Section 4975 of the Code. Those rules provide
that assets of a limited partnership will not be plan assets of a plan that purchases an equity interest in the partnership if
the equity interest purchased is a publicly-offered security. If the underlying assets of a partnership are considered to be assets
of any plan for purposes of ERISA or Section 4975 of the Code, the operations of that partnership would be subject to and,
in some cases, limited by, the provisions of ERISA and Section 4975 of the Code.
82
The publicly-offered security exception
described above applies if the equity interest is a security that is:
(1)
freely transferable (determined based on the relevant facts and circumstances);
(2)
part of a class of securities that is widely held (meaning that the class of securities is owned by 100 or more investors independent
of the issuer and of each other); and
(3)
either (a) part of a class of securities registered under Section 12(b) or 12(g) of the Exchange Act or (b) sold
to the plan as part of a public offering pursuant to an effective registration statement under the Securities Act of 1933 and the
class of which such security is a part is registered under the Exchange Act within 120 days (or such later time as may be allowed
by the SEC) after the end of the fiscal year of the issuer in which the offering of such security occurred.
The plan asset regulations under ERISA
state that the determination of whether a security is freely transferable is to be made based on all the relevant facts and circumstances.
In the case of a security that is part of an offering in which the minimum investment is $10,000 or less, the following requirements,
alone or in combination, ordinarily will not affect a finding that the security is freely transferable: (1) a requirement
that no transfer or assignment of the security or rights relating to the security be made that would violate any federal or state
law, (2) a requirement that no transfer or assignment be made without advance written notice given to the entity that issued
the security, and (3) any restriction on the substitution of assignee as a limited partner of a partnership, including a general
partner consent requirement, provided that the economic benefits of ownership of the assignor may be transferred or assigned without
regard to such restriction or consent (other than compliance with any of the foregoing restrictions).
The General Partner believes that the conditions
described above are satisfied with respect to the units. The General Partner believes that the units therefore constitute publicly-offered
securities, and the underlying assets of USBO are not considered to constitute plan assets of any plan that purchases units.
Prohibited Transactions
ERISA and the Code generally prohibit certain
transactions involving the plan and persons who have certain specified relationships to the plan.
In general, units may not be purchased
with the assets of a plan if the General Partner, the clearing brokers, the trading advisors (if any), or any of their affiliates,
agents or employees either:
•
exercise any discretionary authority or discretionary control with respect to management of the plan;
•
exercise any authority or control with respect to management or disposition of the assets of the plan;
•
render investment advice for a fee or other compensation, direct or indirect, with respect to any moneys or other property
of the plan;
•
have any authority or responsibility to render investment advice with respect to any monies or other property of the plan;
or
•
have any discretionary authority or discretionary responsibility in the administration of the plan.
Also, a prohibited transaction may occur
under ERISA or the Code when circumstances indicate that (1) the investment in a unit is made or retained for the purpose
of avoiding application of the fiduciary standards of ERISA, (2) the investment in a unit constitutes an arrangement under
which USBO is expected to engage in transactions that would otherwise be prohibited if entered into directly by the plan purchasing
the unit, (3) the investing plan, by itself, has the authority or influence to cause USBO to engage in such transactions,
or (4) a person who is prohibited from transacting with the investing plan may, but only with the aid of certain of its affiliates
and the investing plan, cause USBO to engage in such transactions with such person.
Special IRA Rules
IRAs are not subject to ERISA's fiduciary
standards, but are subject to their own rules, including the prohibited transaction rules of Section 4975 of the Code, which
generally mirror ERISA's prohibited transaction rules. For example, IRAs are subject to special custody rules and must maintain
a qualifying IRA custodial arrangement separate and distinct from USBO and its custodial arrangement. Otherwise, if a separate
qualifying custodial arrangement is not maintained, an investment in the units will be treated as a distribution from the IRA.
Second, IRAs are prohibited from investing in certain commingled investments, and the General Partner makes no representation regarding
whether an investment in units is an inappropriate commingled investment for an IRA. Third, in applying the prohibited transaction
provisions of Section 4975 of the Code, in addition to the rules summarized above, the individual for whose benefit the IRA
is maintained is also treated as the creator of the IRA. For example, if the owner or beneficiary of an IRA enters into any transaction,
arrangement, or agreement involving the assets of his or her IRA to benefit the IRA owner or beneficiary (or his or her relatives
or business affiliates) personally, or with the understanding that such benefit will occur, directly or indirectly, such transaction
could give rise to a prohibited transaction that is not exempted by any available exemption. Moreover, in the case of an IRA, the
consequences of a non-exempt prohibited transaction are that the IRA's assets will be treated as if they were distributed,
causing immediate taxation of the assets (including any early distribution penalty tax applicable under Section 72 of the
Code), in addition to any other fines or penalties that may apply.
83
Exempt Plans
Certain employee benefit plans may be governmental
plans or church plans. Governmental plans and church plans are generally not subject to ERISA, nor do the above-described prohibited
transaction provisions described above apply to them. These plans are, however, subject to prohibitions against certain related-party
transactions under Section 503 of the Code, which operate similar to the prohibited transaction rules described above. In
addition, the fiduciary of any governmental or church plan must consider any applicable state or local laws and any restrictions
and duties of common law imposed upon the plan.
No view is expressed as to whether an investment
in USBO (and any continued investment in USBO), or the operation and administration of USBO, is appropriate or permissible for
any governmental plan or church plan under Code Section 503, or under any state, county, local or other law relating to that
type of plan.
Allowing an investment in USBO is not
to be construed as a representation by USBO, its General Partner, any trading advisor, any clearing broker, the Marketing Agent
or legal counsel or other advisors to such parties or any other party that this investment meets some or all of the relevant legal
requirements with respect to investments by any particular plan or that this investment is appropriate for any such particular
plan. The person with investment discretion should consult with the plan's attorney and financial advisors as to the propriety
of an investment in USBO in light of the circumstances of the particular plan, current tax law and ERISA.
INFORMATION YOU SHOULD KNOW
This prospectus contains information you
should consider when making an investment decision about the units. You may rely on the information contained in this prospectus.
Neither USBO nor its General Partner has authorized any person to provide you with different information and, if anyone provides
you with different or inconsistent information, you should not rely on it. This prospectus is not an offer to sell the units in
any jurisdiction where the offer or sale of the units is not permitted.
The information contained in this prospectus
was obtained from us and other sources believed by us to be reliable.
You should rely only on the information
contained in this prospectus or any applicable prospectus supplement. We have not authorized anyone to provide you with any information
that is different. If you receive any unauthorized information, you must not rely on it. You should disregard anything we said
in an earlier document that is inconsistent with what is included in this prospectus or any applicable prospectus supplement. Where
the context requires, when we refer to this "prospectus," we are referring to this prospectus and (if applicable) the
relevant prospectus supplement.
You should not assume that the information
in this prospectus or any applicable prospectus supplement is current as of any date other than the date on the front page of this
prospectus or the date on the front page of any applicable prospectus supplement.
We include cross references in this prospectus
to captions in these materials where you can find further related discussions. The table of contents tells you where to find these
captions.
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This prospectus includes "forward-looking
statements" which generally relate to future events or future performance. In some cases, you can identify forward-looking
statements by terminology such as "may," "will," "should," "expect," "plan,"
"anticipate," "believe," "estimate," "predict," "potential" or the
negative of these terms or other comparable terminology. All statements (other than statements of historical fact) included in
this prospectus that address activities, events or developments that will or may occur in the future, including such matters as
changes in inflation in the United States, movements in the stock market, movements in U.S. and foreign currencies, and movements
in the commodities markets and indexes that track such movements, USBO's operations, the General Partner's plans and
references to USBO's future success and other similar matters, are forward-looking statements. These statements are only
predictions. Actual events or results may differ materially. These statements are based upon certain assumptions and analyses the
General Partner has made based on its perception of historical trends, current conditions and expected future developments, as
well as other factors appropriate in the circumstances. Whether or not actual results and developments will conform to the General
Partner's expectations and predictions, however, is subject to a number of risks and uncertainties, including the special
considerations discussed in this prospectus, general economic, market and business conditions, changes in laws or regulations,
including those concerning taxes, made by governmental authorities or regulatory bodies, and other world economic and political
developments. See "What Are the Risk Factors Involved with an Investment in USBO?" Consequently, all the forward-looking
statements made in this prospectus are qualified by these cautionary statements, and there can be no assurance that the actual
results or developments the General Partner anticipates will be realized or, even if substantially realized, that they will result
in the expected consequences to, or have the expected effects on, USBO's operations or the value of the units.
84
WHERE YOU CAN FIND MORE INFORMATION
The General Partner has filed on behalf
of USBO a registration statement on Form S-1 with the SEC under the 1933 Act. This prospectus does not contain all of the information
set forth in the registration statement (including the exhibits to the registration statement), parts of which have been omitted
in accordance with the rules and regulations of the SEC. For further information about USBO or the units, please refer to the registration
statement, which you may inspect, without charge, at the public reference facilities of the SEC at the below address or online
at
www.sec.gov
, or obtain at prescribed rates from the public reference facilities of the SEC at the below address. Information
about USBO and the units can also be obtained from USBO's website, which is
www.unitedstatesbrentoilfund.com.
USBO's
website address is only provided here as a convenience to you and the information contained on or connected to the website is not
part of this prospectus or the registration statement of which this prospectus is part. USBO is subject to the informational requirements
of the Exchange Act and the General Partner and USBO will each, on behalf of USBO, file certain reports and other information with
the SEC under the Exchange Act. The General Partner will file an updated prospectus annually for USBO pursuant to the Securities
Act. The reports and other information can be inspected at the public reference facilities of the SEC located at 100 F Street,
NE, Washington, D.C. 20549 and online at
www.sec.gov.
You may also obtain copies of such material from the public reference
facilities of the SEC at 100 F Street, NE, Washington, D.C. 20549, at prescribed rates. You may obtain more information concerning
the operation of the public reference facilities of the SEC by calling the SEC at 1-800-SEC-0330 or visiting online at
www.sec.gov.
INCORPORATION BY REFERENCE OF CERTAIN
INFORMATION
We are a reporting company and file annual,
quarterly and current reports and other information with the SEC. The rules of the SEC allow us to "incorporate by reference"
information that we file with them, which means that we can disclose important information to you by referring you to those documents.
The information incorporated by reference is an important part of this prospectus. This prospectus incorporates by reference the
documents set forth below that have been previously filed with the SEC:
•
our Annual Report on Form 10-K for the fiscal year ended December 31, 2012, filed with the SEC on March __, 2013; and
•
our Current Reports on Form 8-K filed with the SEC on January 29, 2013 and February 27, 2013.
Any statement contained in a document incorporated
by reference in this prospectus shall be deemed to be modified or superseded for purposes of this prospectus to the extent that
a statement contained in this prospectus or in any other subsequently filed document that also is or is deemed to be incorporated
by reference in this prospectus modifies or supersedes such statement. Any statement so modified or superseded shall not be deemed,
except as so modified or superseded, to constitute a part of this prospectus.
We will provide to each person to whom
a prospectus is delivered, including any beneficial owner, a copy of these filings at no cost, upon written or oral request at
the following address or telephone number:
United States Brent Oil Fund, LP
Attention: Nicholas D. Gerber
1999 Harrison Street
Suite 1530
Oakland, California
94612
(510) 522-9600
Our internet website is
www.unitedstatesbrentoilfund.com
.
We make our electronic filings with the SEC, including our annual reports on Form 10-K, quarterly reports on Form 10-Q, current
reports on Form 8-K and amendments to these reports available on our website free of charge as soon as practicable after we file
or furnish them with the SEC. The information contained on our website does not constitute a part of this prospectus, and our website
address supplied above is intended to be an inactive textual reference only and not an active hyperlink to our website.
85
SUMMARY OF PROMOTIONAL AND SALES MATERIAL
USBO will use the following sales material it has prepared:
•
USBO's website,
www.unitedstatesbrentoilfund.com
; and
•
Fact Sheet found on USBO's website.
The materials described above are not a
part of this prospectus or the registration statement of which this prospectus is a part and have been submitted to the staff of
the SEC for their review pursuant to Industry Guide 5.
INTELLECTUAL PROPERTY
the General Partner owns a trademark registration for BNO UNITED
STATES BRENT OIL FUND LP (and Design) (U.S. Reg. No. 3916765) for "financial investment services in the field of oil futures
contracts, cash-settled options on oil futures contracts, forward contracts for oil, over-the-counter transactions based on the
price of oil, and indices based on the foregoing," in use since June 2, 2010 and BNO UNITED STATES BRENT OIL FUND, LP (and
Flame Design) S.N. 85592286, in use since October 2, 2012. USBO relies upon this trademark through which it markets its services
and strives to build and maintain brand recognition in the market and among current and potential investors. So long as USBO continues
to use this trademark to identify its services, without challenge from any third party, and properly maintains and renews the trademark
registrations under applicable laws, rules and regulations, it will continue to have indefinite protection for this trademark under
current laws, rules and regulations. The General Partner has been granted two patents Nos. 7,739,186 and 8,019,675, for systems
and methods for an exchange traded fund ("ETF") that tracks the price of one or more commodities.
86
APPENDIX A
Glossary of Defined Terms
In this prospectus, each of the following
terms have the meanings set forth after such term:
1933 Act:
The Securities Act of
1933.
Administrator:
Brown Brothers Harriman &
Co.
Agriculture Index:
SummerHaven Dynamic
Agriculture Index Total Return.
Authorized Purchaser:
One that purchases
or redeems Creation Baskets or Redemption Baskets, respectively, from or to USBO.
Benchmark Futures Contract:
The
near month contract to expire for Brent crude oil traded on the ICE Futures Exchange unless the near month contract is within two
weeks of expiration, in which case the Benchmark Futures Contract is the next month contract to expire for Brent crude oil traded
on the ICE Futures Exchange.
Block Trade:
Privately negotiated
futures or option transactions executed apart from the public auction market. A block transaction may be executed either on or
off the exchange trading floor but is still reported to and cleared by the exchange.
Business Day:
Any day other than
a day when any of the NYSE Arca, the New York Mercantile Exchange or the New York Stock Exchange is closed for regular trading.
CFTC:
Commodity Futures Trading
Commission, an independent agency with the mandate to regulate commodity futures and options in the United States.
Cleared Swap Contract:
A financial
contract, whose value is designed to track the return on stocks, bonds, currencies, commodities, or some other benchmark, that
is submitted to a central clearinghouse after it is either traded over-the-counter or on an exchange or other trading platform.
Code:
Internal Revenue Code.
Commodity Index:
SummerHaven Dynamic
Commodity Index Total Return.
Commodity Pool:
An enterprise in
which several individuals contribute funds in order to trade futures or future options collectively.
Commodity Pool Operator or CPO:
Any person engaged in a business which is of the nature of an investment trust, syndicate, or similar enterprise, and who, in connection
therewith, solicits, accepts, or receives from others, funds, securities, or property, either directly or through capital contributions,
the sale of stock or other forms of securities, or otherwise, for the purpose of trading in any commodity for future delivery or
commodity option on or subject to the rules of any contract market.
Copper Index:
SummerHaven Copper
Index Total Return.
CPER:
United States Copper Index
Fund.
Creation Basket:
A block of 50,000
units used by USBO to issue units.
Crude Oil Interests:
Futures Contracts
and Other Crude Oil-Related Investments.
Custodian:
Brown Brothers Harriman &
Co.
Dodd-Frank Act:
"The Dodd-Frank
Wall Street Reform and Consumer Protection Act" that was signed into law on July 21, 2010.
DTC:
The Depository Trust Company.
DTC will act as the securities depository for the units.
DTC Participant:
An entity that
has an account with DTC.
DTEF:
A derivatives transaction
execution facility.
Exchange Act:
The Securities Exchange
Act of 1934.
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Exchange for Physical (EFP):
An
off market transaction which involves the swapping (or exchanging) of an over-the-counter (OTC) position for a futures position.
The OTC transaction must be for the same or similar quantity or amount of a specified commodity, or a substantially similar commodity
or instrument. The OTC side of the EFP can include swaps, swap options, or other instruments traded in the OTC market. In order
that an EFP transaction can take place, the OTC side and futures components must be "substantially similar" in terms
of either value and or quantity. The net result is that the OTC position (and the inherent counterparty credit exposure) is transferred
from the OTC market to the futures market. EFPs can also work in reverse, where a futures position can be reversed and transferred
to the OTC market.
Exchange for Swap:
A technique,
analogous to an EFP transaction used by financial institutions to avoid taking physical delivery of commodities. A dealer takes
the financial institution's futures positions into its own account and swaps the commodity return for a funding rate.
FINRA:
Financial Industry Regulatory
Authority.
Futures Contracts:
Futures contracts
for crude oil, natural gas, gasoline, heating oil and other petroleum-based fuels that are traded on the New York Mercantile Exchange,
ICE Futures Exchange or other U.S. and foreign exchanges.
General Partner:
United States Commodity
Funds LLC, a Delaware limited liability company, which is registered as a Commodity Pool Operator, who controls the investments
and other decisions of USBO, and which is the general partner or sponsor of each of the Related Public Funds.
ICE Futures Exchange:
The leading
electronic regulated futures and options exchange for global energy markets. USBO expects to invest primarily in futures contracts,
and particularly in futures contracts traded on the ICE Futures Exchange. Its trading platform offers participants access to a
wide spectrum of energy futures products including the Brent and West Texas Intermediate ("WTI") global crude benchmark
contracts, Gas Oil, Natural Gas, Electricity, Coal, and ECX carbon financial instruments.
Indirect Participants:
Banks, brokers,
dealers and trust companies that clear through or maintain a custodial relationship with a DTC Participant, either directly or
indirectly.
Limited Liability Company (LLC):
A type of business ownership combining several features of corporation and partnership structures.
LP Agreement:
The Third Amended
and Restated Agreement of Limited Partnership dated March 1, 2013.
Margin:
The amount of equity required
for an investment in futures contracts.
Marketing Agent:
ALPS Distributors,
Inc.
Metals Index:
SummerHaven Dynamic
Metals Index Total Return.
mmBTU:
10,000 million British thermal
units.
NAV:
Net Asset Value of USBO.
NFA:
National Futures Association.
New York Mercantile Exchange (NYMEX):
The primary exchange on which futures contracts are traded in the U.S.
Option:
The right, but not the obligation,
to buy or sell a futures contract or forward contract at a specified price on or before a specified date.
Other Crude Oil-Related Investments:
Crude oil-related investments other than Futures Contracts such as cash-settled options on Futures Contracts, forward contracts
for crude oil, and over-the-counter transactions that are based on the price of crude oil and other petroleum-based fuels, Futures
Contracts and indices based on the foregoing.
Over-the-Counter (OTC) Derivative:
A financial contract, whose value is designed to track the return on stocks, bonds, currencies, commodities, or some other benchmark,
that is traded over-the-counter or off organized exchanges.
Prudential Regulators:
the CFTC,
the SEC and the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit
Insurance Corporation, the Farm Credit Administration and the Federal Housing Finance Agency, collectively.
Redemption Basket:
A block of 50,000.00
units used by USBO to redeem units.
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Related Public Funds:
USOF, USNG,
US12OF, UGA, USDHO, USSO, US12NG, UAC, USCI, USAG, USMI and CPER.
SEC:
Securities and Exchange Commission.
Secondary Market:
The stock exchanges
and the over-the-counter market. Securities are first issued as a primary offering to the public. When the securities are traded
from that first holder to another, the issues trade in these secondary markets.
Spot Contract:
A cash market transaction
in which the buyer and seller agree to the immediate purchase and sale of a commodity, usually with a two-day settlement.
Swap Contract:
An over-the-counter
derivative that generally involves an exchange of a stream of payments between the contracting parties based on a notional amount
and a specified index.
Tracking Error:
Possibility that
the daily NAV of USBO will not track the price of Brent crude oil.
Treasuries:
Obligations of the U.S.
government with remaining maturities of 2 years or less.
UAC:
United States Asian Commodities
Basket Fund
UGA:
United States Gasoline Fund,
LP.
US12NG:
United States 12 Month Natural
Gas Fund, LP.
US12OF:
United States 12 Month Oil
Fund, LP.
USAG:
United States Agriculture
Index Fund.
USBO:
United States Brent Oil Fund,
LP.
USCI:
United States Commodity Index
Fund.
USDHO:
United States Diesel-Heating
Oil Fund, LP.
USMI:
United States Metals Index
Fund, LP
USNG:
United States Natural Gas
Fund, LP.
USOF:
United States Oil Fund, LP.
USSO:
United States Short Oil Fund,
LP.
Valuation Day:
Any day as of which
USBO calculates its NAV.
You:
The owner of units.
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APPENDIX B
UNITED STATES BRENT OIL FUND, LP
THIRD AMENDED AND RESTATED AGREEMENT
OF LIMITED PARTNERSHIP
This
Third Amended and Restated Agreement of Limited Partnership (this "
Agreement
") dated as of March 1, 2013, is
entered into by and among United States Commodity Funds LLC, a Delaware limited liability company, as General Partner,
on
behalf of itself and any Person or Persons
who shall hereafter be admitted
as Partners in accordance with this Agreement.
WHEREAS, the General Partner and Knight
Capital Markets, LLC, as successor company to Kellogg Capital Markets, the Initial Limited Partner, are parties to that certain
second amended and restated agreement of limited partnership executed on May 4, 2010 (the "LP Agreement");
WHEREAS, Knight Capital Markets, LLC is
no longer a Limited Partner; and
WHEREAS, the General Partner now desires
to amend and restate the LP Agreement regarding the operation of the Partnership;
NOW THEREFORE, the LP Agreement in its
entirety is hereby amended and restated as follows:
ARTICLE 1    DEFINITIONS
As used in this Agreement, the following
terms shall have the following meanings:
1.1
"
Accounting Period
" shall mean the following periods: the initial accounting period which shall commence
upon the commencement of operations of the Partnership. Each subsequent Accounting Period shall commence immediately after the
close of the preceding Accounting Period. Each Accounting Period hereunder shall close on the earliest of (i) the last Business
Day of a month, (ii) the effective date of dissolution of the Partnership, and (iii) such other day or days in addition thereto
or in substitution therefore as may from time to time be determined by the General Partner in its discretion either in any particular
case or generally.
1.2
"
Act
" shall mean the Revised Uniform Limited Partnership Act of the State of Delaware, as amended from time
to time.
1.3
"
Additional Limited Partner
" shall mean a Person admitted to the Partnership as a Limited Partner pursuant
to this Agreement and who is shown as such on the books and records of the Partnership.
1.4
"
Affiliate
" shall mean, when used with reference to a specified Person, (i) any Person who directly or indirectly
through one or more intermediaries controls or is controlled by or is under common control with the specified Person or (ii) any
Person that is an officer of, partner in, or trustee of, or serves in a similar capacity with respect to, the specified Person
or of which the specified Person is an officer, partner or trustee, or with respect to which the specified Person serves in a similar
capacity.
1.5
"
Assignee
" shall mean a Record Holder that has not been admitted to the Partnership as a Substituted Limited
Partner.
1.6
"
Agreement
" shall mean this Third Amended and Restated Agreement of Limited Partnership as may be amended,
modified, supplemented or restated from time to time.
1.7
"
Authorized Purchaser Agreement
" shall mean an agreement among the Partnership, the General Partner and
a Participant, as may be amended or supplemented from time to time in accordance with its terms.
1.8  "
Business
Day
" shall mean any day other than a day when any of the ICE Futures Exchange, the New York Stock Exchange or the NYSE
Arca, Inc. is closed for regular trading.
1.9  "
Beneficial
Owner
" shall mean the ultimate beneficial owner of Units held by a nominee which has furnished the identity of the Beneficial
Owner in accordance with Section 6031(c) of the Code (or any other method acceptable to the General Partner in its sole discretion)
and with Section 9.2.2 of this Agreement.
1.10  "
Capital Account
" shall have
the meaning assigned to such term in Section 4.1.
1.11  "
Capital
Contribution
" shall mean the total amount of money or agreed-upon value of property contributed to the Partnership by
all the Partners or any class of Partners or any one Partner, as the case may be (or the predecessor holders of the interests of
such Partner or Partners).
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1.12  "
Capital Transaction
" shall
mean a sale of all or substantially all of the assets of the Partnership not in the ordinary course of business.
1.13  "
Certificate
" shall mean
a certificate issued by the Partnership evidencing ownership of one or more Units.
1.14  "
Close of Business
" shall
mean 5:00 PM New York time.
1.15  "
Creation Basket
" shall mean
50,000 Units, or such other number of Units as may be determined by the General Partner from time to time, purchased by a Participant.
1.16  "
Code
" shall mean the Internal
Revenue Code of 1986, as amended.
1.17  "
Departing Partner
" shall
mean a former General Partner, from and after the effective date of any withdrawal or removal of such former General Partner.
1.18  "
Depository
" or "
DTC
"
shall mean The Depository Trust Company, New York, New York, or such other depository of Units as may be selected by the General
Partner as specified herein.
1.19  "
Depository Agreement
" shall
mean the Letter of Representations from the General Partner to the Depository, dated as of March 17, 2010, as may be amended or
supplemented from time to time.
1.20  "
Distributable Cash
" shall
mean, with respect to any period, all cash revenues of the Partnership (not including (i) Capital Contributions, (ii) funds received
by the Partnership in respect of indebtedness incurred by the Partnership, (iii) interest or other income earned on temporary investments
of Partnership funds pending utilization, and (iv) proceeds from any Capital Transaction), less the sum of the following: (x) all
amounts expended by the Partnership pursuant to this Agreement in such period and (y) such working capital or reserves or other
amounts as the General Partner reasonably deems to be necessary or appropriate for the proper operation of the Partnership's
business or its winding up and liquidation. The General Partner in its sole discretion may from time to time declare other funds
of the Partnership to be Distributable Cash.
1.21  "
DTC Participants
" shall
have the meaning assigned to such term in Section 9.2.2.
1.22  "
Futures Contracts
" shall
have the meaning assigned to such term in Section 2.4.
1.23  "
General Partner
" shall mean
United States Commodity Funds LLC, a Delaware limited liability company, or any Person who, at the time of reference thereto, serves
as a general partner of the Partnership.
1.24  "
Global Certificates
" shall
mean the global certificate or certificates issued to the Depository as provided in the Depository Agreement, each of which shall
be in substantially the form attached hereto as Exhibit A.
1.25  "
Indirect Participants
" shall
have the meaning assigned to such term in Section 9.2.2.
1.26  "
Initial Limited Partner
"
shall have the meaning assigned to such term in Section 3.3.
1.27  "
Initial Offering Period
"
shall mean the period commencing with the initial effective date of the Prospectus and terminating no later than the ninetieth
(90
th
) day following such date unless extended for up to an additional 90 days at the sole discretion of the General
Partner.
1.28  "
Limited Partner
" shall mean
the Organizational Limited Partner prior to its withdrawal from the Partnership and any other Person who is a limited partner (whether
the Initial Limited Partner, a Limited Partner admitted pursuant to this Agreement or an assignee who is admitted as a Limited
Partner) at the time of reference thereto, in such Person's capacity as a limited partner of the Partnership.
1.29  "
Management Fee
" shall mean
the management fee paid to the General Partner pursuant to this Agreement.
1.30  "
Net Asset Value" or "NAV
"
shall mean the current market value of the Partnership's total assets, less any liabilities and dividing that total by the
total number of outstanding Units, as reasonably determined by the General Partner or its designee.
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1.31  "
NYMEX
" shall mean the New
York Mercantile Exchange, or any successor thereto.
1.32  "
Opinion of Counsel
" shall
mean a written opinion of counsel (who may be regular counsel to the Partnership or the General Partner) acceptable to the General
Partner.
1.33  "
Organizational Limited Partner
"
shall mean Wainwright Holdings, Inc., a Delaware corporation, in its capacity as the organizational limited partner of the Partnership.
1.34  "
Outstanding
" shall mean,
with respect to the Units or other Partnership Securities, as the case may be, all Units or other Partnership Securities that are
issued by the Partnership and reflected as outstanding on the Partnership's books and records as of the date of determination.
1.35  "
Participant
" shall mean
a Person that is a DTC Participant and has entered into an Authorized Purchaser Agreement, which at the relevant time, is in full
force and effect.
1.36  "
Partner
" shall mean the
General Partner or any Limited Partner. "
Partners
" shall mean the General Partner and all Limited Partners (unless
otherwise indicated).
1.37  "
Partnership
" shall mean
the limited partnership hereby formed, as such limited partnership may from time to time be constituted.
1.38  "
Partnership Securities
"
shall mean any additional Units, options, rights, warrants or appreciation rights relating thereto, or any other type of equity
security that the Partnership may lawfully issue, any unsecured or secured debt obligations of the Partnership or debt obligations
of the Partnership convertible into any class or series of equity securities of the Partnership.
1.39  "
Person
" shall mean any natural
person, partnership, limited partnership, limited liability company, trust, estate, corporation, association, custodian, nominee
or any other individual or entity in its own or any representative capacity.
1.40  "
Profit or Loss
" with respect
to any Accounting Period shall mean the excess (if any) of:
(a) the Net Asset Value as of the Valuation
Time on the Valuation Date, less
(b) the Net Asset Value as of the Valuation
Time on the Valuation Date immediately preceding the commencement of such Accounting Period, adjusted as deemed appropriate by
the General Partner to reflect any Capital Contributions, redemptions, withdrawals, distributions, or other events occurring or
accounted for during such Accounting Period (including any allocation of Profit or Loss to a redeeming partner pursuant to Article
4.3.2 with respect to such Accounting Period).
If the amount determined pursuant to the preceding sentence
is a positive number, such amount shall be the "Profit" for the Accounting Period and if such amount is a negative
number, such amount shall be the "Loss" for the Accounting Period.
1.41  "
Prospectus
" shall mean the
United States Brent Oil Fund, LP prospectus, dated May 27, 2010, as the same may have been amended or supplemented, used in connection
with the offer and sale of Units in the Partnership.
1.42  "
Record Date
" shall mean
the date established by the General Partner for determining (a) the identity of Limited Partners (or Assignees if applicable) entitled
to notice of, or to vote at any meeting of Limited Partners or entitled to vote by ballot or give approval of any Partnership action
in writing without a meeting or entitled to exercise rights in respect of any action of Limited Partners or (b) the identity of
Record Holders entitled to receive any report or distribution.
1.43  "
Record Holder
" shall mean
the Person in whose name such Unit is registered on the books of the Transfer Agent as of the open of business on a particular
Business Day.
1.44  "
Redeemable Units
" shall
mean any Units for which a redemption notice has been given.
1.45  "
Redemption Basket
" shall
mean 50,000 Units or such other number of Units as may be determined by the General Partner from time to time, redeemed by a Participant.
1.46  "
Revolving Credit Facility
"
shall mean a revolving credit facility that the Partnership may enter into on behalf of the Partnership with one or more commercial
banks or other lenders for liquidity or other purposes for the benefit of the Partnership.
1.47  "
Substituted Limited Partner
"
shall mean a Person who is admitted as a Limited Partner to the Partnership pursuant to Article 11.2 in place of and with all the
rights of a Limited Partner and who is shown as a Limited Partner on the books and records of the Partnership.
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1.48  "
Tax Certificate
" shall mean
an Internal Revenue Service Form W-9 (or the substantial equivalent thereof) in the case of a Limited Partner that is a U.S. person
within the meaning of the Code, or an Internal Revenue Service Form W-8BEN or other applicable form in the case of a Limited Partner
that is not a U.S. person.
1.49  "
Transfer Agent
" shall mean
Brown Brothers Harriman & Co. or such bank, trust company or other Person (including, without limitation, the General Partner
or one of its Affiliates) as shall be appointed from time to time by the Partnership to act as registrar and transfer agent for
the Units or any applicable Partnership Securities.
1.50  "
Transfer Application
" shall
mean an application and agreement for transfer of Units, which shall be substantially in the form attached hereto as Exhibit C.
1.51  "
Unit
" shall mean an interest
of a Limited Partner or an assignee of the Partnership representing such fractional part of the interests of all Limited Partners
and assignees as shall be determined by the General Partner pursuant to this Agreement.
1.52  "
Unit Register
" shall have
the meaning assigned to such term in Article 9.2.1.
1.53  "
Unitholders
" shall mean
the General Partner and all holders of Units, where no distinction is required by the context in which the term is used.
1.54  "
Valuation Date
" shall mean
the last Business Day of any Accounting Period.
1.55  "
Valuation Time
" shall mean
(i) Close of Business on a Valuation Date or (ii) such other time or day as the General Partner in its discretion may determine
from time to time either in any particular case or generally.
ARTICLE 2
GENERAL PROVISIONS
2.1  This Agreement shall become effective on the
date set forth in the preamble of this Agreement. The rights and liabilities of the Partners shall be as set forth in the Act,
except as herein otherwise expressly provided. The Partnership shall continue without interruption as a limited partnership pursuant
to the provisions of the Act.
2.2  The name of the Partnership shall be United States
Brent Oil Fund, LP; however, the business of the Partnership may be conducted, upon compliance with all applicable laws, under
any other name designated in writing by the General Partner to the Limited Partners.
2.3  The Partnership's principal place of business
shall be located at 1999 Harrison Street, Suite 1530, Oakland, California 94612 or such other place as the General Partner may
designate from time to time. The registered agent for the Partnership is Corporation Service Company and the registered office
is located at 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808, County of New Castle. The Partnership may maintain
such other offices at such other places as the General Partner deems advisable.
2.4  The investment objective of the Partnership is
to have the daily changes in percentage terms of the units' Net Asset Value reflect the daily changes in percentage terms
of the spot price of light, sweet crude oil as measured by the changes in the price of the Brent Crude Oil futures contract on
light, sweet crude oil as traded on the ICE Futures Exchange that is the near month contract to expire, except when the near month
contract is within two weeks of expiration, in which case the futures contract will be the next month contract to expire, less
the Partnership's expenses. It is not the intent of the Partnership to be operated in a fashion such that its NAV will equal,
in dollar terms, the dollar price of spot crude oil or any particular futures contract based on crude oil. The net assets of the
Partnership will consist primarily of investments in positions in futures contracts for crude oil, diesel-heating oil, gasoline,
natural gas and other petroleum-based fuels that are traded on the ICE Futures Exchange (formerly, the International Petroleum
Exchange), NYMEX, or other U.S. and foreign exchanges (collectively, "Futures Contracts"). The Partnership may also
take positions in other crude oil-related investments such as cash-settled options on Futures Contracts, forward contracts for
crude oil, and over-the-counter transactions that are based on the price of crude oil and other petroleum-based fuels, Futures
Contracts and indices based on the foregoing.
2.5  The term of the Partnership shall be from the
date of its formation in perpetuity, unless earlier terminated in accordance with the terms of this Agreement.
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2.6  The General Partner shall execute, file and publish
all such certificates, notices, statements or other instruments required by law for the formation or operation of a limited partnership
in all jurisdictions where the Partnership may elect to do business. The General Partner shall not be required to deliver or mail
to the Limited Partners a copy of the certificate of limited partnership of the Partnership or any certificate of amendment thereto.
2.7  The Partnership shall be empowered to do any
and all acts and things necessary, appropriate, proper, advisable, incidental to or convenient for the furtherance and accomplishment
of the purposes, business, protection and benefit of the Partnership.
2.8  The business and affairs of the Partnership shall
be managed by the General Partner in accordance with Article 7 hereof. The General Partner has seven directors, a majority of whom
may also be executive officers of the General Partner. The General Partner shall establish and maintain an audit committee of its
board of directors for the Partnership (the "Audit Committee") in compliance with, and granted the requisite authority
and funding pursuant to, any applicable (1) federal securities laws and regulations, including the Sarbanes-Oxley Act of 2002,
and (2) rules, policies and procedures of any national securities exchange on which the securities issued by the Partnership are
listed and traded.
ARTICLE 3    PARTNERS
AND CAPITAL CONTRIBUTIONS
3.1
General Partner.
3.1.1  The name of the General Partner is United States
Commodity Funds LLC, which maintains its principal business office at 1999 Harrison Street, Suite 1530, Oakland, California 94612.
3.1.2  In
consideration of management and administrative services rendered by the General Partner, the Partnership shall pay the Management
Fee to the General Partner (or such other person or entity designated by the General Partner).
In addition, all ongoing
charges, costs and expenses of the Partnership's operations shall be billed to and paid by the Partnership. Such costs and
expenses, shall include, without limitation, (i) brokerage and other fees and commissions incurred in connection with the
trading activities of the Units of the Partnership, (ii) licensing fees for the use of intellectual property used by the Partnership,
(iii) expenses incurred in connection with registering additional Units of the Partnership or offering Units of the Partnership
after the time any units of Partnership have begun trading on an Exchange; (iv) the routine expenses associated with distribution,
including printing and mailing, of any monthly, annual and other reports to Unitholders required by applicable U.S. federal and
state regulatory authorities; (v) fees and expenses associated with compensation to the directors; (vi) payment for legal
counsel and independent accountants; (vii) payment for fees associated with tax accounting and reporting, routine accounting,
bookkeeping, whether performed by an outside service provider or by Affiliates of the General Partner (viii) postage and insurance,
including directors' and officers' liability insurance; (ix) costs and expenses associated with client relations
and services; (x) the payment of any distributions related to redemption of Units; and (xi) payment of all federal, state,
local or foreign taxes payable on the income, assets or operations of the Partnership and the preparation of all tax returns related
thereto.
The Management Fee shall be 0.75% of NAV. Fees and expenses,
including the Management Fee, are calculated on a daily basis and paid on a monthly basis (accrued at 1/365 of applicable percentage
of NAV on that day). The General Partner may, in its sole discretion, waive all or part of the Management Fee. The Partnership
shall be responsible for all extraordinary expenses (i.e., expenses not in the ordinary course of business, including, without
limitation, the items listed above in this Section 3.1.2, the indemnification of any Person against liabilities and obligations
to the extent permitted by law and required under this Agreement and the bringing and defending of actions at law or in equity
and otherwise engaging in the conduct of litigation and the incurring of legal expense and the settlement of claims and litigation).
3.1.3  In connection with the formation of the Partnership
under the Act, the General Partner acquired a 2% interest in the profits and losses of the Partnership and made an initial capital
contribution to the Partnership in the amount of $20.00, and the Organizational Limited Partner acquired a 98% interest in the
profits and losses of the Partnership and made an initial capital contribution to the Partnership in the amount of $980.00. As
of the date of the initial offering of Units to the public, the interest of the Organizational Limited Partner shall be redeemed,
the initial capital contribution of the Organizational Limited Partner shall be refunded, and the Organizational Limited Partner
shall thereupon withdraw and cease to be a Limited Partner. Ninety-eight percent of any interest or other profit that may have
resulted from the investment or other use of such initial capital contribution was allocated and distributed to the Organizational
Limited Partner, and the balance thereof was allocated and distributed to the General Partner. The General Partner may but shall
not be required to make Capital Contributions to the Partnership on or after the date hereof. If the General Partner does make
a Capital Contribution to the Partnership on or after the date hereof, it shall be issued Units based on the same terms and conditions
applicable to the purchase of a Creation Basket under Article 16 hereof.
3.1.4  The General Partner may not, without written
approval by all of the Limited Partners or by other written instrument executed and delivered by all of the Limited Partners subsequent
to the date of this Agreement, take any action in contravention of this Agreement, including, without limitation, (i) any act that
would make it impossible to carry on the ordinary business of the Partnership, except as otherwise provided in this Agreement;
(ii) possess Partnership property, or assign any rights in specific Partnership property, for other than a Partnership purpose;
(iii) admit a Person as a Partner, except as otherwise provided in this Agreement; (iv) amend this Agreement in any manner, except
as otherwise provided in this Agreement or under applicable law; or (v) transfer its interest as general partner of the Partnership,
except as otherwise provided in this Agreement.
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3.1.5  Except as otherwise provided herein, the General
Partner may not sell, exchange or otherwise dispose of all or substantially all of the Partnership's assets in a single transaction
or a series of related transactions (including by way of merger, consolidation or other combination with any other Person) or approve
on behalf of the Partnership the sale, exchange or other disposition of all or substantially all of the assets of the Partnership,
taken as a whole, without the approval of at least a majority of the Limited Partners; provided, however, that this provision shall
not preclude or limit the General Partner's ability to mortgage, pledge, hypothecate or grant a security interest in all
or substantially all of the Partnership's assets and shall not apply to any forced sale of any or all of the Partnership's
assets pursuant to the foreclosure of, or other realization upon, any such encumbrance.
3.1.6  Unless approved by a majority of the Limited
Partners, the General Partner shall not take any action or refuse to take any reasonable action the effect of which, if taken or
not taken, as the case may be, would be to cause the Partnership, to the extent it would materially and adversely affect the Limited
Partners, to be taxable as a corporation for federal income tax purposes.
3.1.7  Notwithstanding any other provision of this
Agreement, the General Partner is not authorized to institute or initiate on behalf of, or otherwise cause the Partnership to:
(a) make a general assignment for the benefit
of creditors;
(b) file a voluntary bankruptcy petition;
or
(c) file a petition seeking for the Partnership
a reorganization, arrangement, composition, readjustment liquidation, dissolution or similar relief under any law.
3.2
Issuance of Units.
Units in
the Partnership will only be issued in a Creation Basket or whole number multiples thereof.
3.3.
Initial Limited Partner.
The
Initial Limited Partner was Knight Capital Markets, LLC formerly, Kellogg Capital Markets (
"Initial Limited Partner"
)
located at 55 Broadway New York, NY 10006.
3.4
Capital Contribution.
Except
as otherwise provided in this Agreement, no Partner shall have any right to demand or receive the return of its Capital Contribution
to the Partnership. No Partner shall be entitled to interest on any Capital Contribution to the Partnership or on such Partner's
Capital Account.
ARTICLE 4    CAPITAL
ACCOUNTS OF PARTNERS AND OPERATION THEREOF
4.1
Capital Accounts.
There shall
be established on the books and records of the Partnership for each Partner (or Beneficial Owner in the case of Units held by a
nominee) a capital account (a "
Capital Account
"). It is intended that each Partner's Capital Account shall
be maintained at all times in a manner consistent with Section 704 of the Code and applicable Treasury regulations thereunder,
and that the provisions hereof relating to the Capital Accounts shall be interpreted in a manner consistent therewith. For each
Accounting Period, the Capital Account of each Partner shall be:
(i) credited with the amount of any Capital
Contributions made by such Partner during such Accounting Period;
(ii) credited with any allocation of Profit
made to such Partner for such Accounting Period;
(iii) debited with any allocation of Loss
made to such Partners for such Accounting Period; and
(iv) debited with the amount of cash paid
to such Partner as an amount withdrawn or distributed to such Partner during such Accounting Period, or, in the case of any payment
of a withdrawal or distribution in kind, the fair value of the property paid or distributed during such Accounting Period.
4.1.1  For any Accounting Period in which Units are
issued or redeemed for cash or other property, the General Partner shall, in accordance with Treasury Regulation Section 1.704-1(b)(2)(iv)(f),
adjust the Capital Accounts of all Partners and the carrying value of each Partnership asset upward or downward to reflect any
unrealized gain or unrealized loss attributable to each such Partnership asset, as if such unrealized gain or unrealized loss had
been recognized on an actual sale of the asset and had been allocated to the Partners at such time pursuant to Article 4.2 of this
Agreement in the same manner as any item of gain or loss actually recognized during such period would have been allocated.
4.1.2  To the extent an adjustment to the adjusted
tax basis of any Partnership asset pursuant to Section 734(b) or 743(b) of the Code is required, pursuant to Treasury Regulation
Section 1.704-1(b)(2)(iv)(m), to be taken into account in determining Capital Accounts, the amount of such adjustment to the Capital
Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases
such basis), and such item of gain or loss shall be specially allocated to the Partners in a manner consistent with the manner
in which their Capital Accounts are required to be adjusted pursuant to such Section of the Treasury regulations.
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4.2
Allocation of Profit or Loss.
Profit
or Loss for an Accounting Period shall be allocated among the Partners in proportion to the number of Units each Partner holds
as of the Close of Business on the last Business Day of such Accounting Period. The General Partner may revise, alter or otherwise
modify this method of allocation to the extent it deems necessary to comply with the requirements of Section 704 or Section 706
of the Code and Treasury regulations or administrative rulings thereunder.
4.3
Allocations for Tax Purposes
4.3.1  Except as otherwise provided in this Agreement,
for each fiscal year of the Partnership, items of income, deduction, gain, loss, and credit recognized by the Partnership for federal
income tax purposes shall be allocated among the Partners in a manner that equitably reflects the amounts credited or debited to
each Partner's Capital Account for each Accounting Period during such fiscal year. Allocations under this Article 4.3 shall
be made by the General Partner in accordance with the principles of Sections 704(b) and 704(c) of the Code and in conformity with
applicable Treasury regulations promulgated thereunder (including, without limitation, Treasury regulations Sections 1.704-1(b)(2)(iv)(f),
1.704-1(b)(4)(i), and 1.704-3(e)).
4.3.2  Notwithstanding anything else contained in
this Article 4, if any Partner has a deficit Capital Account for any Accounting Period as a result of any adjustment of the type
described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(5) or 1.704-1(b)(2)(ii)(d)(6), then the Partnership's income
and gain shall be specially allocated to such Partner in an amount and manner sufficient to eliminate such deficit as quickly as
possible. Any special allocation of items of income or gain pursuant to this Article 4.3.2 shall be taken into account in computing
subsequent allocations pursuant to this Article 4 so that the cumulative net amount of all items allocated to each Partner shall,
to the extent possible, be equal to the amount that would have been allocated to such Partner if there had never been any allocation
pursuant to the first sentence of this Article 4.3.2.
4.3.3  Allocations that would otherwise be made to
a Limited Partner under the provisions of this Article 4 shall instead be made to the Beneficial Owner of Units held by a nominee.
4.4
Compliance.
In applying the
provisions of this Article 4, the General Partner is authorized to utilize such reasonable accounting conventions, valuation methods
and assumptions as the General Partner shall determine to be appropriate and in compliance with the Code and applicable Treasury
regulations. The General Partner may amend the provisions of this Agreement to the extent it determines to be necessary to comply
with the Code and Treasury regulations.
ARTICLE 5    RECORDS
AND ACCOUNTING; REPORTS
5.1
Records and Accounting.
The
Partnership will keep proper books of record and account of the Partnership at its office located in 1999 Harrison Street, Suite
1530, Oakland, California 94612 or such office, including that of an administrative agent, as it may subsequently designate upon
notice to the Limited Partners. These books and records are open to inspection by any person who establishes to the Partnership's
satisfaction that such person is a Limited Partner upon reasonable advance notice at all reasonable times during the usual business
hours of the Partnership.
5.2
Annual Reports.
Within 90 days
after the end of each fiscal year, the General Partner shall cause to be delivered to each Person who was a Partner at any time
during the fiscal year, an annual report containing the following:
(i) financial statements of the Partnership,
including, without limitation, a balance sheet as of the end of the Partnership's fiscal year and statements of income, Partners'
equity and changes in financial position, for such fiscal year, which shall be prepared in accordance with generally accepted accounting
principles consistently applied and shall be audited by a firm of independent certified public accountants registered with the
Public Company Accounting Oversight Board,
(ii) a general description of the activities
of the Partnership during the period covered by the report, and
(iii) a report of any material transactions
between the Partnership and the General Partner or any of its Affiliates, including fees or compensation paid by the Partnership
and the services performed by the General Partner or any such Affiliate for such fees or compensation.
5.3
Quarterly Reports.
Within 45
days after the end of each quarter of each fiscal year, the General Partner shall cause to be delivered to each Person who was
a Partner at any time during the quarter then ended, a quarterly report containing a balance sheet and statement of income for
the period covered by the report, each of which may be unaudited but shall be certified by the General Partner as fairly presenting
the financial position and results of operations of the Partnership during the period covered by the report. The report shall also
contain a description of any material event regarding the business of the Partnership during the period covered by the report.
5.4
Monthly Reports.
Within 30
days after the end of each month, the General Partner shall cause to be delivered to each Person who was a Partner at any time
during the month then ended, a monthly report containing an account statement, which will include a statement of income (or loss)
and a statement of changes in NAV, for the prescribed period. In addition, the account statement will disclose any material business
dealings between the Partnership, General Partner, commodity trading advisor (if any), futures commission merchant, or the principals
thereof that previously have not been disclosed in the Partnership's Prospectus or any amendment thereto, other account statements
or annual reports.
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5.5
Tax Information.
Unless not
required to be provided to a Partner, Assignee or Beneficial Owner under the applicable rules and regulations of the Code, the
General Partner shall use its best efforts to prepare and to transmit a U.S. federal income tax form K-1 for each Partner, Assignee,
or Beneficial Owner or a report setting forth in sufficient detail such transactions effected by the Partnership during each fiscal
year as shall enable each Partner, Assignee, or Beneficial Owner to prepare its U.S. federal income tax return, if any, within
a reasonable period after the end of such fiscal year.
5.6
Tax Returns.
The General Partner
shall cause income tax returns of the Partnership to be prepared and timely filed with the appropriate authorities.
5.7
Tax Matters Partner.
The General
Partner is hereby designated as the Partnership's "Tax Matters Partner," as defined under Section 6231(a)(7)
of the Code. The General Partner is specifically directed and authorized to take whatever steps the General Partner, in its discretion,
deems necessary or desirable to perfect such designation, including filing any forms or documents with the U.S. Internal Revenue
Service and taking such other action as may from time to time be required under U.S. Treasury regulations. Any Partner shall have
the right to participate in any administrative proceedings relating to the determination of Partnership items at the Partnership
level. Expenses of such administrative proceedings undertaken by the Tax Matters Partner shall be expenses of the Partnership.
Each Partner who elects to participate in such proceedings shall be responsible for any expenses incurred by such Partner in connection
with such participation. The cost of any resulting audits or adjustments of a Partner's tax return shall be borne solely
by the affected Partner. In the event of any audit, investigation, settlement or review, for which the General Partner is carrying
out the responsibilities of Tax Matters Partner, the General Partner shall keep the Partners reasonably apprised of the status
and course of such audit, investigation, settlement or review and shall forward copies of all written communications from or to
any regulatory, investigative or judicial authority with regard thereto.
ARTICLE 6    FISCAL
AFFAIRS
6.1
Fiscal Year.
The fiscal year
of the Partnership shall be the calendar year. The General Partner may select an alternate fiscal year.
6.2
Partnership Funds.
Pending
application or distribution, the funds of the Partnership shall be deposited in such bank account or accounts, or invested in such
interest-bearing or non-interest bearing investment, including, without limitation, checking and savings accounts, certificates
of deposit and time or demand deposits in commercial banks, U.S. government securities and securities guaranteed by U.S. government
agencies as shall be designed by the General Partner. Such funds shall not be commingled with funds of any other Person. Withdrawals
therefrom shall be made upon such signatures as the General Partner may designate.
6.3
Accounting Decisions.
All decisions
as to accounting principles, except as specifically provided to the contrary herein, shall be made by the General Partner.
6.4
Tax Elections.
The General
Partner shall, from time to time, make such tax elections as it deems necessary or desirable in its sole discretion to carry out
the business of the Partnership or the purposes of this Agreement. Notwithstanding the foregoing, the General Partner shall make
a timely election under Section 754 of the Code.
6.5
Partnership Interests.
Title
to the Partnership assets shall be deemed to be owned by the Partnership as an entity, and no Partner or Assignee, individually
or collectively, shall have any ownership interest in such Partnership assets or any portion thereof. Title to any or all of the
Partnership assets may be held in the name of the Partnership, the General Partner or one or more nominees, as the General Partner
may determine. The General Partner hereby declares and warrants that any Partnership assets for which record title is held in the
name of the General Partner shall be held by the General Partner for the exclusive use and benefit of the Partnership in accordance
with the provisions of this Agreement; provided, however, that the General Partner shall use its reasonable efforts to cause record
title to such assets (other than those assets in respect of which the General Partner determines that the expense and difficulty
of conveyancing makes transfer of record title to the Partnership impracticable) to be vested in the Partnership as soon as reasonably
practicable; provided, that prior to the withdrawal or removal of the General Partner or as soon thereafter as practicable, the
General Partner will use reasonable efforts to effect the transfer of record title to the Partnership and, prior to any such transfer,
will provide for the use of such assets in a manner satisfactory to the Partnership. All Partnership assets shall be recorded as
the property of the Partnership in its books and records, irrespective of the name in which record title to such Partnership assets
are held.
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ARTICLE 7    RIGHTS
AND DUTIES OF THE GENERAL PARTNER
7.1
Management Power.
The General
Partner shall have exclusive management and control of the business and affairs of the Partnership, and all decisions regarding
the management and affairs of the Partnership shall be made by the General Partner. The General Partner shall have all the rights
and powers of general partner as provided in the Act and as otherwise provided by law. Except as otherwise expressly provided in
this Agreement, the General Partner is hereby granted the right, power and authority to do on behalf of the Partnership all things
which, in its sole judgment, are necessary, proper or desirable to carry out the aforementioned duties and responsibilities, including
but not limited to, the right, power and authority from time to time to do the following:
(a) the making of any expenditures, the lending
or borrowing of money, the assumption or guarantee of, or other contracting for, indebtedness and other liabilities, the issuance
of evidences of indebtedness and the incurring of any other obligations and the securing of same by mortgage, deed of trust or
other lien or encumbrance;
(b) the making of tax, regulatory and other
filings, or rendering of periodic or other reports to governmental or other agencies having jurisdiction over the business or assets
of the Partnership;
(c) the acquisition, disposition, mortgage,
pledge, encumbrance, hypothecation or exchange of any or all of the assets of the Partnership, or the merger or other combination
of the Partnership with or into another Person (the matters described in this clause (c) being subject, however, to any prior approval
that may be required in accordance with this Agreement);
(d) the use of the assets of the Partnership
(including, without limitation, cash on hand) for any purpose consistent with the terms of this Agreement including, without limitation,
the financing of the conduct of the operations of the Partnership, the lending of funds to other Persons, and the repayment of
obligations of the Partnership;
(e) the negotiation, execution and performance
of any contracts, conveyances or other instruments (including, without limitation, instruments that limit the liability of the
Partnership under contractual arrangements to all or particular assets of the Partnership with the other party to the contract
to have no recourse against the General Partner or its assets other than its interest in the Partnership, even if same results
in the terms of the transaction being less favorable to the Partnership than would otherwise be the case);
(f) the distribution of Distributable Cash;
(g) the selection and dismissal of employees
(including, without limitation, employees having titles such as "
president,
" "
vice president,
"
"
secretary
" and "
treasurer
"), agents, outside attorneys, accountants, consultants and contractors
and the determination of their compensation and other terms of employment or hiring;
(h) the maintenance of insurance for the
benefit of the Partners and the Partnership (including, without limitation, the assets and operations of the Partnership);
(i) the formation of, or acquisition of an
interest in, and the contribution of property to, any further limited or general partnerships, joint ventures or other relationships;
(j) the control of any matters affecting
the rights and obligations of the Partnership, including, without limitation, the bringing and defending of actions at law or in
equity and otherwise engaging in the conduct of litigation and the incurring of legal expense and the settlement of claims and
litigation;
(k) the indemnification of any Person against
liabilities and contingencies to the extent permitted by law;
(l) the entering into of listing agreements
with the NYSE Arca, Inc. and any other securities exchange and the delisting of some or all of the Units from, or requesting that
trading be suspended on, any such exchange; and
(m) the purchase, sale or other acquisition
or disposition of Units.
7.2
Best Efforts.
The General Partner
will use its best efforts to cause the Partnership to be formed, reformed, qualified or registered under assumed or fictitious
name statutes or similar laws in any state in which the Partnership owns property or transacts business if such formation, reformation,
qualification or registration is necessary in order to protect the limited liability of the Limited Partners or to permit the Partnership
lawfully to own property or transact business.
7.3
Right of Public to Rely on Authority of a
General Partner.
No person shall be required to determine the General Partner's authority to make any undertaking
on behalf of the Partnership.
7.4
Obligation of the General Partner.
The
General Partner shall:
(a) devote to the Partnership and apply to
the accomplishment of the Partnership purposes so much of its time and attention as is necessary or advisable to manage properly
the affairs of the Partnership;
(b) maintain the Capital Account for each
Partner; and
(c) cause the Partnership to enter into and
carry out the obligations of the Partnership contained in the agreements with Affiliates of the General Partner as described in
the Prospectus and cause the Partnership not to take any action in violation of such agreements.
7.5
Good Faith.
The General Partner
has a responsibility to the Limited Partners to exercise good faith and fairness in all dealings. In the event that a Limited Partner
believes that the General Partner has violated its fiduciary duty to the Limited Partners, he may seek legal relief individually
or on behalf of the Partnership under applicable laws, including under the Act and under securities and commodities laws, to recover
damages from or require an accounting by the General Partner. Limited Partners should be aware that performance by the General
Partner of its fiduciary duty is measured by the terms of this Agreement as well as applicable law. Limited Partners may also have
the right, subject to applicable procedural and jurisdictional requirements, to bring class actions in federal court to enforce
their rights under the federal securities laws and the rules and regulations promulgated thereunder by the SEC. Limited Partners
who have suffered losses in connection with the purchase or sale of the Units may be able to recover such losses from the General
Partner where the losses result from a violation by the General Partner of the federal securities laws. State securities laws may
also provide certain remedies to limited partners. Limited Partners are afforded certain rights to institute reparations proceedings
under the Commodity Exchange Act for violations of the Commodity Exchange Act or of any rule, regulation or order of the Commodity
Futures Trading Commission ("
CFTC
") by the General Partner.
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7.6
Indemnification
7.6.1  Notwithstanding any other provision of this
Agreement, neither a General Partner nor any employee or other agent of the Partnership nor any officer, director, stockholder,
partner, employee or agent of a General Partner (a "
Protected Person
") shall be liable to any Partner or the
Partnership for any mistake of judgment or for any action or inaction taken, nor for any losses due to any mistake of judgment
or to any action or inaction or to the negligence, dishonesty or bad faith of any officer, director, stockholder, partner, employee
or agent of the Partnership or any officer, director, stockholder, partner, employee or agent of such General Partner, provided
that such officer, director, stockholder, partner, employee or agent of the Partner or officer, director, stockholder, partner,
employee or agent of such General Partner was selected, engaged or retained by such General Partner with reasonable care, except
with respect to any matter as to which such General Partner shall have been finally adjudicated in any action, suit or other proceeding
not to have acted in good faith in the reasonable belief that such Protected Person's action was in the best interests of
the Partnership and except that no Protected Person shall be relieved of any liability to which such Protected Person would otherwise
be subject by reason of willful misfeasance, gross negligence or reckless disregard of the duties involved in the conduct of the
Protected Person's office. A General Partner and its officers, directors, employees or partners may consult with counsel
and accountants (except for the Partnership's independent auditors) in respect of Partnership affairs and be fully protected
and justified in any action or inaction which is taken in accordance with the advice or opinion of such counsel or accountants
(except for the Partnership's independent auditors), provided that they shall have been selected with reasonable care.
Notwithstanding any of the foregoing to the contrary, the provisions
of this Article 7.6.1 and of Article 7.6.2 hereof shall not be construed so as to relieve (or attempt to relieve) a General Partner
(or any officer, director, stockholder, partner, employee or agent of such General Partner) of any liability to the extent (but
only to the extent) that such liability may not be waived, modified or limited under applicable law, but shall be construed so
as to effectuate the provisions of this Article 7.6.1 and of Article 7.6.2 hereof to the fullest extent permitted by law.
7.6.2  The Partnership shall, to the fullest extent
permitted by law, but only out of Partnership assets, indemnify and hold harmless a General Partner and each officer, director,
stockholder, partner, employee or agent thereof (including persons who serve at the Partnership's request as directors, officers
or trustees of another organization in which the Partnership has an interest as a Unitholder, creditor or otherwise) and their
respective legal representatives and successors (hereinafter referred to as a "
Covered Person
") against all
liabilities and expenses, including but not limited to amounts paid in satisfaction of judgments, in compromise or as fines and
penalties, and counsel fees reasonably incurred by any Covered Person in connection with the defense or disposition of any action,
suit or other proceedings, whether civil or criminal, before any court or administrative or legislative body, in which such Covered
Person may be or may have been involved as a party or otherwise or with which such Covered Person may be or may have been threatened,
while in office or thereafter, by reason of an alleged act or omission as a General Partner or director or officer thereof, or
by reason of its being or having been such a General Partner, director or officer, except with respect to any matter as to which
such Covered Person shall have been finally adjudicated in any such action, suit or other proceeding not to have acted in good
faith in the reasonable belief that such Covered Person's action was in the best interest of the Partnership, and except
that no Covered Person shall be indemnified against any liability to the Partnership or Limited Partners to which such Covered
Person would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties
involved in the conduct of such Covered Person's office. Expenses, including counsel fees so incurred by any such Covered
Person, may be paid from time to time by the Partnership in advance of the final disposition of any such action, suit or proceeding
on the condition that the amounts so paid shall be repaid to the Partnership if it is ultimately determined that the indemnification
of such expenses is not authorized hereunder.
As to any matter disposed of by a compromise payment by any
such Covered Person, pursuant to a consent decree or otherwise, no such indemnification either for said payment or for any other
expenses shall be provided unless such compromise shall be approved as in the best interests of the Partnership, after notice that
it involved such indemnification by any disinterested person or persons to whom the questions may be referred by the General Partner,
provided that there has been obtained an opinion in writing of independent legal counsel to the effect that such Covered Person
appears to have acted in good faith in the reasonable belief that his or her action was in the best interests of the Partnership
and that such indemnification would not protect such persons against any liability to the Partnership or its Limited Partners to
which such person would otherwise by subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard
of the duties involved in the conduct of office. Approval by any disinterested person or persons shall not prevent the recovery
from persons of indemnification if such Covered Person is subsequently adjudicated by a court of competent jurisdiction not to
have acted in good faith in the reasonable belief that such Covered Person's action was in the best interests of the Partnership
or to have been liable to the Partnership or its Limited Partners by reason of willful misfeasance, bad faith, gross negligence
or reckless disregard of the duties involved in the conduct of such Covered Person's office.
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The right of indemnification hereby provided shall not be exclusive
of or affect any other rights to which any such Covered Person may be entitled. As used in this Article 7.6.2, an "
interested
Covered Person
" is one against whom the action, suit or other proceeding on the same or similar grounds is then or has
been pending and a "
disinterested person
" is a person against whom no actions, suits or other proceedings or
another action, suit or other proceeding on the same or similar grounds is then or has been pending. Nothing contained in this
Article 7.6.2 shall affect any rights to indemnification to which personnel of a General Partner, other than directors and officers,
and other persons may be entitled by contract or otherwise under law, nor the power of the Partnership to purchase and maintain
liability insurance on behalf of any such person.
Nothing in this Article 7.6.2 shall be construed to subject
any Covered Person to any liability to which he or she is not already liable under this Agreement or applicable law.
7.6.3  Each Limited Partner agrees that it will not
hold any Affiliate or any officer, director, stockholder, partner, employee or agent of any Affiliate of the General Partner liable
for any actions of such General Partner or any obligations arising under or in connection with this Agreement or the transactions
contemplated hereby.
7.7
Resolutions of Conflicts of Interest; Standard
of Care.
7.7.1  Unless otherwise expressly provided in this
Agreement or any other agreement contemplated hereby, whenever a conflict of interest exists or arises between the General Partner
on the one hand, and the Partnership or any Limited Partner, on the other hand, any resolution or course of action by the General
Partner in respect of such conflict of interest shall be permitted and deemed approved by all Partners and shall not constitute
a breach of this Agreement or of any agreement contemplated hereby or of a duty stated or implied by law or equity, if the resolution
or course of action is, or by operation of this Agreement is deemed to be, fair and reasonable to the Partnership. If a dispute
arises, it will be resolved through negotiations with the General Partner or by a court located in the State of Delaware. Any resolution
of a dispute is deemed to be fair and reasonable to the Partnership if the resolution is:
·
approved by the Audit Committee, although no party is obligated to
seek such approval and the General Partner may adopt a resolution or course of action that has not received such approval;
·
on terms no less favorable to the Limited Partners than those generally
being provided to or available from unrelated third parties; and
·
fair to the Limited Partners, taking into account the totality of
the relationships of the parties involved including other transactions that may be particularly favorable or advantageous to the
Limited Partners.
7.7.2  Whenever this Agreement or any other agreement
contemplated hereby provides that the General Partner is permitted or required to make a decision (i) in its discretion or under
a grant of similar authority or latitude, the General Partner shall be entitled to the extent permitted by applicable law, to consider
only such interest and factors as it desires and shall have no duty or obligation to give any consideration to any interest of
or factors affecting the partnership or the Limited Partners, or (ii) in its good faith or under another express standard, the
General Partner shall act under such express standard and except as required by applicable law, shall not be subject to any other
different standards imposed by this Agreement, any other agreement contemplated hereby or applicable law.
7.8
Other Matters Concerning the General Partner.
7.8.1  The General Partner (including the Audit Committee)
may rely on and shall be protected in acting or refraining from acting upon any certificate, document or other instrument believed
by it to be genuine and to have been signed or presented by the proper party or parties.
7.8.2  The General Partner (including the Audit Committee)
may consult with legal counsel, accountants, appraisers, management consultants, investment bankers and other consultants and advisors
selected by it and any opinion or advice of any such person as to matters which the General Partner (including the Audit Committee)
believes to be within such person's professional or expert competence shall be the basis for full and complete authorization
of indemnification and provide legal protection with respect to any action taken or suffered or omitted by the General Partner
(including the Audit Committee) hereunder in good faith and in accordance with such opinion or advice.
7.8.3  The General Partner (including the Audit Committee)
may exercise any of the powers granted to it by this Agreement and perform any of the duties imposed upon it hereunder either directly
or by or through its agents, and the General Partner (including the Audit Committee) shall not be responsible for any misconduct
or negligence on the part of any such agent appointed by the General Partner in good faith.
7.9
Other Business Ventures.
Any
Partner, director, employee, Affiliate or other person holding a legal or beneficial interest in any entity which is a Partner,
may engage in or possess an interest in other business ventures of every nature and description, independently or with others,
whether such ventures are competitive with the Partnership or otherwise; and, neither the Partnership nor the Partners shall have
any right by virtue of this Agreement in or to such independent ventures or to the income or profits derived there from.
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7.10
Contracts with the General Partner or its
Affiliates.
The General Partner may, on behalf of the Partnership, enter into contracts with any Affiliate. The
validity of any transaction, agreement or payment involving the Partnership and any General Partner or any Affiliate of a General
Partner otherwise permitted by the terms of this Agreement shall not be affected by reason of (i) the relationship between the
Partnership and the Affiliate of the General Partner, or (ii) the approval of said transaction agreement or payment by officers
or directors of the General Partner.
7.11
Additional General Partners.
Additional
general partners may be admitted with the consent of the General Partner.
ARTICLE 8    RIGHTS
AND OBLIGATIONS OF LIMITED PARTNERS
8.1
No Participation in Management.
No
Limited Partner (other than a General Partner if it has acquired an interest of a Limited Partner) shall take part in the management
of the Partnership's business, transact any business in the Partnership's name or have the power to sign documents
for or otherwise bind the Partnership.
8.2
Limitation of Liability.
Except
as provided in the Act, the debts, obligations, and liabilities of the Partnership, whether arising in contract, tort or otherwise,
shall be solely the debts, obligations and liabilities of the Partnership. A Limited Partner will not be liable for assessments
in addition to its initial capital investment in any capital securities representing limited partnership interests. However, a
Limited Partner may be required to repay to the Partnership any amounts wrongfully returned or distributed to it under some circumstances.
8.3
Indemnification and Terms of Admission.
Each
Limited Partner shall indemnify and hold harmless the Partnership, the General Partner and every Limited Partner who was or is
a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceedings, whether civil,
criminal, administrative or investigative, by reason of or arising from any actual or alleged misrepresentation or misstatement
of facts or omission to state facts made (or omitted to be made) by such Limited Partner in connection with any assignment, transfer,
encumbrance or other disposition of all or any part of an interest, or the admission of a Limited Partner to the Partnership, against
expenses for which the Partnership or such other Person has not otherwise been reimbursed (including attorneys' fees, judgments,
fines and amounts paid in settlement) actually and reasonably incurred by him in connection with such action, suit or proceeding.
8.4
Effective Date.
The effective
date of admission of a Limited Partner shall be the date designated by the General Partner in writing to such assignee or transferee.
8.5
Death or Incapacity of Limited Partner.
The
death or legal incapacity of a Limited Partner shall not cause dissolution of the Partnership.
8.6
Rights of Limited Partner Relating to the
Partnership.
(a) In addition to other rights provided
by this Agreement or by applicable law, and except as otherwise limited under this Agreement, each Limited Partner shall have the
right, for a purpose reasonably related to such Limited Partner's interest as a Limited Partner in the Partnership, upon
reasonable demand and at such Limited Partner's own expense:
(i) to obtain true and full information regarding
the status of the business and financial condition of the Partnership;
(ii) promptly after becoming available, to
obtain a copy of the Partnership's federal, state and local tax returns for each year;
(iii) to have furnished to it, upon notification
to the General Partner, a current list of the name and last known business, residence or mailing address of each Partner;
(iv) to have furnished to it, upon notification
to the General Partner, a copy of this Agreement and the Certificate of Limited Partnership and all amendments thereto;
(v) to obtain true and full information regarding
the amount of cash contributed by and a description and statement of the value of any other Capital Contribution by each Partner
and which each Partner has agreed to contribute in the future, and the date on which each became a Partner; and
(vi) to obtain such other information regarding
the affairs of the Partnership as is just and reasonable.
(b)  Notwithstanding any other
provision of this Agreement, the General Partner may keep confidential from the Limited Partners and Assignees for such period
of time as the General Partner deems reasonable, any information that the General Partner reasonably believes to be in the nature
of trade secrets or other information, the disclosure of which the General Partner in good faith believes is not in the best interests
of the Partnership or could damage the Partnership or that the Partnership is required by law or by agreements with third parties
to keep confidential (other than agreements with Affiliates the primary purpose of which is to circumvent the obligations set forth
in this Article 8.6).
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ARTICLE 9    UNIT
CERTIFICATES
9.1
Unit Certificates.
Certificates
shall be executed on behalf of the Partnership by any officer either of the General Partner or, if any, of the Partnership.
9.2
Registration Form, Registration of Transfer
and Exchange.
9.2.1  The General Partner shall cause to be kept
on behalf of the Partnership a register (the "
Unit Register
") in which, subject to such reasonable regulations
as it may prescribe, the General Partner will provide for the registration and the transfer of Units. The Transfer Agent has been
appointed registrar and transfer agent for the purpose of registering and transferring Units as herein provided. The Partnership
shall not recognize transfers of Certificates representing Units unless same are effected in the manner described in this Article
9.2. Upon surrender for registration of transfer of any Units evidenced by a Certificate, the General Partner on behalf of the
Partnership will execute, and the Transfer Agent will countersign and deliver, in the name of the holder or the designated transferee
or transferees, as required pursuant to the holder's instructions, one or more new Certificates evidencing the same aggregate
number of Units as was evidenced by the Certificate so surrendered.
9.2.2
Book-Entry-Only System.
(a)
Global Certificate Only.
Unless
otherwise authorized by the General Partner, Certificates for Units will not be issued, other than the one or more Global Certificates
issued to the Depository. So long as the Depository Agreement is in effect, Creation Baskets will be issued and redeemed and Units
will be transferable solely through the book-entry systems of the Depository and the DTC Participants and their Indirect Participants
as more fully described below.
(1)
Global Certificate.
The
Partnership and the General Partner will enter into the Depository Agreement pursuant to which the Depository will act as securities
depository for the Units. Units will be represented by the Global Certificate (which may consist of one or more certificates as
required by the Depository), which will be registered, as the Depository shall direct, in the name of Cede & Co., as nominee
for the Depository and deposited with, or on behalf of, the Depository. No other certificates evidencing Units will be issued.
The Global Certificate shall be in the form attached hereto as Exhibit A and shall represent such Units as shall be specified therein,
and may provide that it shall represent the aggregate amount of outstanding Units from time to time endorsed thereon and that the
aggregate amount of outstanding Units represented thereby may from time to time be increased or decreased to reflect creations
or redemptions of Baskets (as defined in Section 16.1). Any endorsement of a Global Certificate to reflect the amount, or any increase
or decrease in the amount, of outstanding Units represented thereby shall be made in such manner and upon instructions given by
the General Partner on behalf of the Partnership as specified in the Depository Agreement.
(2)
Legend.
Any Global
Certificate issued to the Depository or its nominee shall bear a legend substantially to the following effect:
"UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE FUND OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUIRED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN."
(3)
The Depository.
The Depository has advised
the Partnership and the General Partner as follows: the Depository is a limited-purpose trust company organized under the laws
of the State of New York, a member of the U.S. Federal Reserve System, a "
clearing corporation
" within the meaning
of the New York Uniform Commercial Code, and a "
clearing agency
" registered pursuant to the provisions of Section
17A of the Securities Exchange Act of 1934, as amended. The Depository was created to hold securities of DTC Participants and to
facilitate the clearance and settlement of securities transactions among the DTC Participants in such securities through electronic
book-entry changes in accounts of the DTC Participants, thereby eliminating the need for physical movement of securities certificates.
"
DTC Participants
" include securities brokers and dealers, banks, trust companies, clearing corporations, and
certain other organizations, some of whom (and/or their representatives) own the Depository. Access to the Depository's system
is also available to others such as banks, brokers, dealers and trust companies that clear through or maintain a custodial relationship
with a DTC Participant, either directly or indirectly ("
Indirect Participants
"). The Depository may determine
to discontinue providing its service with respect to Creation Baskets and Units by giving notice to the General Partner pursuant
to and in conformity with the provisions of the Depository Agreement and discharging its responsibilities with respect thereto
under applicable law. Under such circumstances, the General Partner shall take action either to find a replacement for the Depository
to perform its functions at a comparable cost and on terms acceptable to the General Partner or, if such a replacement is unavailable,
to terminate the Partnership.
(4)
Beneficial Owners.
As
provided in the Depository Agreement, upon the settlement date of any creation, transfer or redemption of Units, the Depository
will credit or debit, on its book-entry registration and transfer system, the number of Units so created, transferred or redeemed
to the accounts of the appropriate DTC Participants. The accounts to be credited and charged shall be designated by the General
Partner on behalf of the Partnership and each Participant, in the case of a creation or redemption of Baskets. Ownership of beneficial
interest in Units will be limited to DTC Participants, Indirect Participants and persons holding interests through DTC Participants
and Indirect Participants. Beneficial Owners will be shown on, and the transfer of beneficial ownership by Beneficial Owners will
be effected only through, in the case of DTC Participants, records maintained by the Depository and, in the case of Indirect Participants
and Beneficial Owners holding through a DTC Participant or an Indirect Participant, through those records or the records of the
relevant DTC Participants. Beneficial Owners are expected to receive, from or through the broker or bank that maintains the account
through which the Beneficial Owner has purchased Units, a written confirmation relating to their purchase of Units.
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(5)
Reliance on Procedures.
Except
for those who have provided Transfer Applications to the General Partner, so long as Cede & Co., as nominee of the Depository,
is the registered owner of Units, references herein to the registered or record owners of Units shall mean Cede & Co. and shall
not mean the Beneficial Owners of Units. Beneficial Owners of Units will not be entitled to have Units registered in their names,
will not receive or be entitled to receive physical delivery of certificates in definitive form and will not be considered the
record or registered holder of Units under this Agreement. Accordingly, to exercise any rights of a holder of Units under the Agreement,
a Beneficial Owner must rely on the procedures of the Depository and, if such Beneficial Owner is not a DTC Participant, on the
procedures of each DTC Participant or Indirect Participant through which such Beneficial Owner holds its interests. The Partnership
and the General Partner understand that under existing industry practice, if the Partnership requests any action of a Beneficial
Owner, or a Beneficial Owner desires to take any action that the Depository, as the record owner of all outstanding Units, is entitled
to take, the Depository will notify the DTC Participants regarding such request, such DTC Participants will in turn notify each
Indirect Participant holding Units through it, with each successive Indirect Participant continuing to notify each person holding
Units through it until the request has reached the Beneficial Owner, and in the case of a request or authorization to act that
is being sought or given by a Beneficial Owner, such request or authorization is given by the Beneficial Owner and relayed back
to the Partnership through each Indirect Participant and DTC Participant through which the Beneficial Owner's interest in
the Units is held.
(6)
Communication between the Partnership
and the Beneficial Owners.
As described above, the Partnership will recognize the Depository or its nominee as the
owner of all Units for all purposes except as expressly set forth in this Agreement. Conveyance of all notices, statements and
other communications to Beneficial Owners will be effected in accordance with this paragraph. Pursuant to the Depository Agreement,
the Depository is required to make available to the Partnership, upon request and for a fee to be charged to the Partnership, a
listing of the Unit holdings of each DTC Participant. The Partnership shall inquire of each such DTC Participant as to the number
of Beneficial Owners holding Units, directly or indirectly, through such DTC Participant. The Partnership shall provide each such
DTC Participant with sufficient copies of such notice, statement or other communication, in such form, number and at such place
as such DTC Participant may reasonably request, in order that such notice, statement or communication may be transmitted by such
DTC Participant, directly or indirectly, to such Beneficial Owners. In addition, the Partnership shall pay to each such DTC Participant
an amount as reimbursement for the expenses attendant to such transmittal, all subject to applicable statutory and regulatory requirements.
(7)
Distributions.
Distributions
on Units pursuant to this Agreement shall be made to the Depository or its nominee, Cede & Co., as the registered owner of
all Units. The Partnership and the General Partner expect that the Depository or its nominee, upon receipt of any payment of distributions
in respect of Units, shall credit immediately DTC Participants' accounts with payments in amounts proportionate to their
respective beneficial interests in Units as shown on the records of the Depository or its nominee. The Partnership and the General
Partner also expect that payments by DTC Participants to Indirect Participants and Beneficial Owners held through such DTC Participants
and Indirect Participants will be governed by standing instructions and customary practices, as is now the case with securities
held for the accounts of customers in bearer form or registered in a "
street name,
" and will be the responsibility
of such DTC Participants and Indirect Participants. Neither the Partnership nor the General Partner will have any responsibility
or liability for any aspects of the records relating to or notices to Beneficial Owners, or payments made on account of beneficial
ownership interests in Units, or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests
or for any other aspect of the relationship between the Depository and the DTC Participants or the relationship between such DTC
Participants and the Indirect Participants and Beneficial Owners owning through such DTC Participants or Indirect Participants
or between or among the Depository, any Beneficial Owner and any person by or through which such Beneficial Owner is considered
to own Units.
(8)
Limitation of Liability.
The
Global Certificate to be issued hereunder is executed and delivered solely on behalf of the Partnership by the General Partner
in its capacity as such and in the exercise of the powers and authority conferred and vested in it by this Agreement. The representations,
undertakings and agreements made on the part of the Partnership in the Global Certificate are made and intended not as personal
representations, undertakings and agreements by the General Partner, but are made and intended for the purpose of binding only
the Partnership. Nothing in the Global Certificate shall be construed as creating any liability on the General Partner, individually
or personally, to fulfill any representation, undertaking or agreement other than as provided in this Agreement.
(9)
Successor Depository.
If
a successor to the Depository shall be employed as Depository hereunder, the Partnership and the General Partner shall establish
procedures acceptable to such successor with respect to the matters addressed in this Section 9.2.2.
(10)
Transfer of Units.
Beneficial
Owners that are not DTC Participants may transfer Units by instructing the DTC Participant or Indirect Participant holding the
Units for such Beneficial Owner in accordance with standard securities industry practice. Beneficial Owners that are DTC Participants
may transfer Units by instructing the Depository in accordance with the rules of the Depository and standard securities industry
practice.
9.2.3  Except as otherwise provided in this Agreement,
the Partnership shall not recognize any transfer of Units until the Certificates (if applicable) and a Transfer Application have
been provided to the General Partner evidencing such Units are surrendered for registration of transfer. Such Certificates must
be accompanied by a Transfer Application duly executed by the transferee (or the transferee's attorney-in-fact duly authorized
in writing). No charge shall be imposed by the Partnership for such transfer, provided, that, as a condition to the issuance of
any new Certificate under this Article 9.2, the General Partner may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed with respect thereto.
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9.3
Mutilated, Destroyed, Lost or Stolen Certificates.
9.3.1  If any mutilated Certificate is surrendered
to the Transfer Agent, the General Partner on behalf of the Partnership, shall execute, and upon its request, the Transfer Agent
shall countersign and deliver in exchange therefore, a new Certificate evidencing the same number of Units as the Certificate so
surrendered.
9.3.2  The General Partner, on behalf of the Partnership,
shall execute, and upon its request, the Transfer Agent shall countersign and deliver a new Certificate in place of any Certificate
previously issued if the Record Holder of the Certificate:
(a) makes proof by affidavit, in form and
substance satisfactory to the General Partner, that a previously issued Certificate has been lost, destroyed or stolen;
(b) requests the issuance of a new Certificate
before the Partnership has received notice that the Certificate has been acquired by a purchaser for value in good faith and without
notice of an adverse claim;
(c) if requested by the General Partner,
delivers to the Partnership a bond or such other form of security or indemnity as may be required by the General Partner, in form
and substance satisfactory to the General Partner, with surety or sureties and with fixed or open penalty as the General Partner
may direct, in its sole discretion, to indemnify the Partnership, the General Partner and the Transfer Agent against any claim
that may be made on account of the alleged loss, destruction or theft of the Certificate; and
(d) satisfies any other reasonable requirements
imposed by the General Partner.
If a Limited Partner or Assignee fails to
notify the Partnership within a reasonable time after it has notice of the loss, destruction or theft of a Certificate, and a transfer
of the Units represented by the Certificate is registered before the Partnership, the General Partner or the Transfer Agent receives
such notification, the Limited Partner or Assignee shall be precluded from making any claim against the Partnership, the General
Partner or the Transfer Agent for such transfer or for a new Certificate.
9.3.3  As a condition to the issuance of any new Certificate
under this Article 9.3, the General Partner may require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including, without limitation, the fees and expenses of
the Transfer Agent) connected therewith.
9.4
Record Holder.
The Partnership
shall be entitled to recognize the Record Holder as the Limited Partner or Assignee with respect to any Units and, accordingly,
shall not be bound to recognize any equitable or other claim to or interest in such Units on the part of any other Person, whether
or not the Partnership shall have actual or other notice thereof, except as otherwise provided by law or any applicable rule, regulation,
guideline or requirement of any national securities exchange on which the Units are listed for trading. Without limiting the foregoing,
when a Person (such as a broker, dealer, bank trust company or clearing corporation or an agent of any of the foregoing) is acting
as nominee, agent or in some other representative capacity for another Person in acquiring and/or holding Units, as between the
Partnership on the one hand and such other Persons on the other hand such representative Person (a) shall be the Limited Partner
or Assignee (as the case may be) of record and beneficially, (b) must execute and deliver a Transfer Application and (c) shall
be bound by this Agreement and shall have the rights and obligations of a Limited Partner or Assignee (as the case may be) hereunder
and as provided for herein.
9.5
Partnership Securities.
The
General Partner is hereby authorized to cause the Partnership to issue Partnership Securities, for any Partnership purpose, at
any time or from time to time, to the Partners or to other Persons for such consideration and on such terms and conditions as shall
be established by the General Partner in its sole discretion, all without the approval of any Limited Partners. The General Partner
shall have sole discretion, subject to the requirements of the Act, in determining the consideration and terms and conditions with
respect to any future issuance of Partnership Securities.
9.5.1  The General Partner shall do all things necessary
to comply with the Act and is authorized and directed to do all things it deems to be necessary or advisable in connection with
any future issuance of Partnership Securities, including, without limitation, compliance with any statute, rule, regulation or
guideline of any federal, state or other governmental agency or any national securities exchange on which the Units or other Partnership
Securities are listed for trading.
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ARTICLE 10    TRANSFER
OF INTERESTS
10.1
Transfer.
10.1.1  The term "transfer," when used
in this Article 10 with respect to an interest, shall be deemed to refer to an appropriate transaction by which the General Partner
assigns its interest as General Partner to another Person or by which the holder of a Unit assigns such Unit to another Person
who is or becomes an Assignee and includes a sale, assignment, gift, pledge, encumbrance, hypothecation, mortgage, exchange or
any other disposition by law or otherwise.
10.1.2  No interest shall be transferred in whole
or in part, except in accordance with the terms and conditions set forth in this Article 10. Any transfer or purported transfer
of an interest not made in accordance with this Article 10 shall be null and void.
10.2
Transfer of General Partner's Interest.
10.2.1  Except as set forth in this Article 10.2.1,
the General Partner may transfer all, but not less than all, of its interest as the general partner to a single transferee if,
but only if, (i) at least a majority of the Limited Partners approve of such transfer and of the admission of such transferee as
general partner, (ii) the transferee agrees to assume the rights and duties of the General Partner and be bound by the provisions
of this Agreement and other applicable agreements, and (iii) the Partnership receives an Opinion of Counsel that such transfer
would not result in the loss of limited liability of any Limited Partner or of the Partnership or cause the Partnership to be taxable
as a corporation or otherwise taxed as an entity for federal income tax purposes. The foregoing notwithstanding, the General Partner
is expressly permitted to pledge its interest as General Partner to secure the obligations of the Partnership under a Revolving
Credit Facility, as the same may be amended, supplemented, replaced, refinanced or restated from time to time, or any successor
or subsequent loan agreement.
10.2.2  Neither Article 10.2.1 nor any other provision
of this Agreement shall be construed to prevent (and all Partners do hereby consent to) (i) the transfer by the General Partner
of all of its interest as a general partner to an Affiliate or (ii) the transfer by the General Partner of all its interest as
a general partner upon its merger or consolidation with or other combination into any other Person or the transfer by it of all
or substantially all of its assets to another Person if, in the case of a transfer described in either clause (i) or (ii) of this
sentence, the rights and duties of the General Partner with respect to the interest so transferred are assumed by the transferee
and the transferee agrees to be bound by the provisions of this Agreement; provided, that in either such case, such transferee
furnishes to the Partnership an Opinion of Counsel that such merger, consolidation, combination, transfer or assumption will not
result in a loss of limited liability of any Limited Partner or of the Partnership or cause the Partnership to be taxable as a
corporation or otherwise taxed as an entity for federal income tax purpose. In the case of a transfer pursuant to this Article
10.2.2, the transferee or successor (as the case may be) shall be admitted to the Partnership as the General Partner immediately
prior to the transfer of the interest, and the business of the Partnership shall continue without dissolution.
10.3
Transfer of Units.
10.3.1  Units may be transferred only in the manner
described in Article 9.2. The transfer of any Units and the admission of any new Partner shall not constitute an amendment to this
Agreement.
10.3.2  Until admitted as a Substituted Limited Partner
pursuant to Article 11, the Record Holder of a Unit shall be an Assignee in respect of such Unit. Limited Partners may include
custodians, nominees or any other individual or entity in its own or any representative capacity.
10.3.3  Each distribution in respect of Units shall
be paid by the Partnership, directly or through the Transfer Agent or through any other Person or agent, only to the Record Holders
thereof as of the Record Date set for the distribution. Such payment shall constitute full payment and satisfaction of the Partnership's
liability in respect of such payment, regardless of any claim of any Person who may have an interest in such payment by reason
of an assignment or otherwise.
10.3.4  A transferee who has completed and delivered
a Transfer Application provided by the seller of the Units (or if purchased on an exchange directly from the Partnership), shall
be deemed to have (i) requested admission as a Substituted Limited Partner, (ii) agreed to comply with and be bound by and to have
executed this Agreement, (iii) represented and warranted that such transferee has the capacity and authority to enter into this
Agreement, (iv) made the powers of attorney set forth in this Agreement, and (v) given the consents and made the waivers contained
in this Agreement.
10.4
Restrictions on Transfers.
Notwithstanding
the other provisions of this Article 10, no transfer of any Unit or interest therein of any Limited Partner or Assignee shall be
made if such transfer would (a) violate the then applicable federal or state securities laws or rules and regulations of the SEC,
any state securities commission, the CFTC, or any other governmental authorities with jurisdiction over such transfer, (b) cause
the Partnership to be taxable as a corporation or (c) affect the Partnership's existence or qualification as a limited partnership
under the Act. The General Partner may request each Record Holder to furnish certain information, including that holder's
nationality, citizenship or other related status. A transferee who is not a U.S. resident may not be eligible to become a Record
Holder or a Limited Partner if such ownership would subject the Partnership to the risk of cancellation or forfeiture of any of
its assets under any federal, state or local law or regulation. If the Record Holder fails to furnish the information or if the
General Partner determines, on the basis of the information furnished by the holder in response to the request, that such holder
is not qualified to become a Limited Partner, the General Partner may be substituted as a holder for the Record Holder, who will
then be treated as a non-citizen assignee, and the Partnership will have the right to redeem those securities held by the Record
Holder.
10.5
Tax Certificates.
10.5.1  All Limited Partners or Assignees (or, if
the Limited Partner or Assignee is a nominee holding for the account of a Beneficial Owner, the Beneficial Owner) are required
to provide the Partnership with a properly completed Tax Certificate.
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10.5.2  If a Limited Partner or Assignee (or, if the
Limited Partner or Assignee is a nominee holding for the account of a Beneficial Owner, the Beneficial Owner) fails to provide
the Partnership with a properly completed Tax Certificate, the General Partner may request at any time and from time to time, that
such Limited Partner or Assignee (or Beneficial Owner) shall, within 15 days after request (whether oral or written) therefore
by the General Partner, furnish to the Partnership, a properly completed Tax Certificate. If a Limited Partner or Assignee fails
to furnish to the General Partner within the aforementioned 15-day period such Tax Certificate, the Units owned by such Limited
Partner or Assignee (or in the case of a Limited Partner or Assignee that holds Units on behalf of a Beneficial Owner, the Units
held on behalf of the Beneficial Owner) shall be subject to redemption in accordance with the provisions of Article 10.6.
10.6
Redemption of Units for Failure to Provide
Tax Certificate.
10.6.1  If at any time a Limited Partner or Assignee
fails to furnish a properly completed Tax Certificate within the 15-day period specified in Article 10.5.2, the Partnership may
redeem the Units of such Limited Partner or Assignee as follows:
(a) The General Partner shall not later than
the tenth (10
th
) Business Day before the date fixed for redemption, give notice of redemption to the Limited Partner
or Assignee, at its last address designated on the records of the Partnership or the Transfer Agent, by registered or certified
mail, postage prepaid. The notice shall be deemed to have been given when so mailed (the "
Notice Date
"). The
notice shall specify the Redeemable Units, the date fixed for redemption, the place of payment, and that payment of the redemption
price will be made upon surrender of the certification evidencing the Redeemable Units.
(b) The aggregate redemption price for Redeemable Units shall
be an amount equal to the market price as of the Close of Business on the Business Day immediately prior to the date fixed for
redemption of Units to be so redeemed multiplied by the number of Units included among the Redeemable Units. The redemption price
shall be paid in the sole discretion of the General Partner, in cash or by delivery of a promissory note of the Partnership in
the principal amount of the redemption price, bearing interest at the Prime Rate (as established by the Federal Reserve Board)
and payable in three equal annual installments of principal together with accrued interest commencing one year after the redemption
date.
(c) Upon surrender by or on behalf of the
Limited Partner or Assignee, at the place specified in the notice of redemption, of the certification evidencing the Redeemable
Units, duly endorsed in blank or accompanied by an assignment duly executed in blank, the Limited Partner or Assignee or its duly
authorized representative shall be entitled to receive the payment therefore.
(d) In the event the Partnership is required
to pay withholding tax or otherwise withhold any amount on behalf of, or with respect to, a Limited Partner or Assignee (or Beneficial
Owner) who has failed to provide a properly completed Tax Certificate, such amounts paid or withheld by the Partnership shall be
deemed to have been paid to such Limited Partner or Assignee (or Beneficial Owner) as part of the redemption price for the Redeemable
Units and the Partnership shall reduce the amount of the payment made to such Limited Partner or Assignee (or Beneficial owner)
in redemption of such Redeemable Units by any amounts so withheld.
10.6.2  After the Notice Date, Redeemable Units shall
no longer constitute issued and Outstanding Units and no allocations or distributions shall be made with respect to such Redeemable
Units. In addition, after the Notice Date, the Redeemable Units shall not be transferable.
10.6.3  The provisions of this Article 10.6 shall
also be applicable to Units held by a Limited Partner or Assignee as nominee of a Beneficial Owner.
ARTICLE 11    ADMISSION
OF PARTNERS
11.1
Admission of Initial Limited Partners and
Other Creation Basket Purchases.
Subject to the requirements of this Article 11, upon the issuance by the Partnership
of Units to the Initial Limited Partner and any other purchasers of a Creation Basket, the General Partner shall admit the Initial
Limited Partner and such other purchasers of the Creation Basket to the Partnership as Limited Partners in respect of the Units
purchased.
11.2
Admission of Substituted Limited Partners.
By
transfer of a Unit in accordance with Article 10, the transferor shall be deemed to have given the transferee the right to seek
admission as a Substituted Limited Partner subject to the conditions of, and in the manner permitted under, this Agreement. A transferor
of a Certificate shall, however, only have the authority to convey to a purchaser or other transferee who does not execute and
deliver a Transfer Application (i) the right to negotiate such Certificate to a purchaser or other transferee, and (ii) the right
to transfer the right to request admission as a Substituted Limited Partner to such purchaser or other transferee in respect of
the transferred Units. Each transferee of a Unit (including, without limitation, any nominee holder or an agent acquiring such
Unit for the account of another Person) who executes and delivers a Transfer Application shall, by virtue of such execution and
delivery, be an Assignee and be deemed to have applied to become a Substituted Limited Partner with respect to the Units so transferred
to such Person. Such Assignee shall become a Substituted Limited Partner (i) at such time as the General Partner consents thereto,
which consent may be given or withheld in the General Partner's sole discretion, and (ii) when any such admission is shown
on the books and records of the Partnership, following the consent of the General Partner to such admission.If such consent is
withheld, such transferee shall be an Assignee. An Assignee shall have an interest in the Partnership equivalent to that of a Limited
Partner with respect to allocations and distributions, including, without limitation, liquidating distributions, of the Partnership.
With respect to voting rights attributable to Units that are held by Assignees, the General Partner shall be deemed to be the Limited
Partner with respect thereto and shall, in exercising the voting rights in respect of such Units on any matter, vote such Units
at the written direction of the Assignee who is the Record Holder of such Units. If no such written direction is received, such
Units will not be voted. An Assignee shall have none of the other rights of a Limited Partner.
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11.3
Admission of Successor General Partner.
A
successor General Partner approved pursuant to this Article 11.3 or the transferee of or successor to all of the General Partner's
interest pursuant to Article 10.2 who is proposed to be admitted as a successor General Partner shall be admitted to the Partnership
as the General Partner, effective immediately prior to the withdrawal or removal of the General Partner pursuant to Article 12
or the transfer of the General Partner's interest pursuant to Article 10.2; provided, however, that no such successor shall
be admitted to the Partnership until compliance with the terms of Article 10.2 has occurred. Any such successor shall carry on
the business of the Partnership without dissolution. In each case, the admission shall be subject to the successor General Partner
executing and delivering to the Partnership an acceptance of all of the terms and conditions of this Agreement and such other documents
or instruments as may be required to effect the admission.
11.4
Admission of Additional Limited Partners.
11.4.1  A Person (other than the General Partner,
an Initial Limited Partner or a Substituted Limited Partner) who makes a Capital Contribution to the Partnership in accordance
with this Agreement shall be admitted to the Partnership as an Additional Limited Partner only upon furnishing to the General Partner
(i) evidence of acceptance in form satisfactory to the General Partner of all of the terms and conditions of this Agreement, including,
without limitation, the power of attorney granted in this Agreement, and (ii) such other documents or instruments as may be required
in the discretion of the General Partner to effect such Person's admission as an Additional Limited Partner.
11.4.2  Notwithstanding anything to the contrary in
this Article 11.4, no Person shall be admitted as an Additional Limited Partner without the consent of the General Partner, which
consent may be given or withheld in the General Partner's sole discretion. The admission of any Person as an Additional Limited
Partner shall become effective on the date upon which the name of such Person is recorded on the books and records of the Partnership,
following the consent of the General Partner to such admission.
11.5
Amendment of Agreement and Certificate of
Limited Partnership.
To effect the admission to the Partnership of any Partner, the General Partner shall take all
steps necessary and appropriate under the Act to amend the records of the Partnership and if necessary, to prepare as soon as practical
an amendment of this Agreement and if required by law, to prepare and file an amendment to the Certificate of Limited Partnership
and may for this purpose, among others, exercise the power of attorney granted pursuant to Article 15.
ARTICLE 12    WITHDRAWAL
OR REMOVAL OF PARTNERS
12.1
Withdrawal of the General Partner.
12.1.1  The General Partner shall be deemed to have
withdrawn from the Partnership upon the occurrence of any one of the following events (each such event herein referred to as an
"Event of Withdrawal"):
(a) the General Partner voluntarily withdraws
from the Partnership by giving written notice to the other Partners;
(b) the General Partner transfers all of
its rights as general partner pursuant to this Agreement;
(c) the General Partner is removed;
(d) the General Partner (1)
makes a general assignment for the benefit of creditors; (2) files a voluntary bankruptcy petition; (3) files a petition or answer
seeking for itself a reorganization, arrangement, composition, readjustment liquidation, dissolution or similar relief under any
law; (4) files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against
the General Partner in a proceeding of the type described in clauses (1) – (3) of this sentence; or (5) seeks,
consents to or acquiesces in the appointment of a trustee, receiver or liquidator of the General Partner or of all or any substantial
part of its properties;
(e) a final and non-appealable judgment is
entered by a court with appropriate jurisdiction ruling that the General Partner is bankrupt or insolvent or a final and non-appealable
order for relief is entered by a court with appropriate jurisdiction against the General Partner, in each case under any federal
or state bankruptcy or insolvency laws as now or hereafter in effect; or
(f) a certificate of dissolution or its equivalent
is filed for the General Partner, or 90 days expire after the date of notice to the General Partner of revocation of its charter
without a reinstatement of its charter, under the laws of its state of incorporation.
If an Event of Withdrawal specified in this Article 12.1.1(d),
(e) or (f) occurs, the withdrawing General Partner shall give written notice to the Limited Partners within 30 days after such
occurrence. The Partners hereby agree that only the Events of Withdrawal described in this Article 12.1 shall result in the withdrawal
of the General Partner from the Partnership.
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12.1.2  Withdrawal of the General Partner from the
Partnership upon the occurrence of an Event of Withdrawal will not constitute a breach of this Agreement under the following circumstances:
(i) the General Partner voluntarily withdraws by giving at least 90 days' advance notice to the Limited Partners, such withdrawal
to take effect on the date specified in such notice; or (ii) at any time that the General Partner ceases to be a General Partner
pursuant to Article 12.1.1(b) or is removed pursuant to Article 12.2. If the General Partner gives a notice of withdrawal pursuant
to Article 12.1.1(a), holders of at least a majority of such Outstanding Units (excluding for purposes of such determination any
Units owned by the General Partner and its Affiliates) may, prior to the effective date of such withdrawal, elect a successor General
Partner. If, prior to the effective date of the General Partner's withdrawal, a successor is not selected by the Unitholders
as provided herein, the Partnership shall be dissolved in accordance with Article 13. If a successor General Partner is elected,
such successor shall be admitted immediately prior to the effective time of the withdrawal or removal of the Departing Partner
and shall continue the business of the Partnership without dissolution.
12.2
Removal of the General Partner.
The
General Partner may be removed only if such removal is approved by the Unitholders holding at least 66 2/3% of the Outstanding
Units (excluding for this purpose any Units held by the General Partner and its Affiliates). Any such action by such holders for
removal of the General Partner must also provide for the election of a successor General Partner by the Unitholders holding a majority
of the Outstanding Units (excluding for this purpose any Units held by the General Partner and its Affiliates). Such removal shall
be effective immediately following the admission of a successor General Partner.
12.3
Withdrawal of a Limited Partner other than
the Organizational Limited Partner.
In addition to withdrawal of a Limited Partner due to its redemption of Units
constituting a Redemption Basket under this Agreement, the General Partner may, at any time, in its sole discretion, require any
Limited Partner to withdraw entirely from the Partnership or to withdraw a portion of its Partner Capital Account, by giving not
less than 15 days' advance written notice to the Limited Partner thus designated. In addition, the General Partner without
notice may require at any time, or retroactively, withdrawal of all or any portion of the Capital Account of any Limited Partner:
(i) that made a misrepresentation to the General Partner in connection with its purchase of Units; or (ii) whose ownership of Units
would result in the violation of any law or regulations applicable to the Partnership or a Partner. The Limited Partner thus designated
shall withdraw from the Partnership or withdraw that portion of its Partner Capital Account specified in such notice, as the case
may be, as of the Close of Business on such date as determined by the General Partner. The Limited Partner thus designated shall
be deemed to have withdrawn from the Partnership or to have made a partial withdrawal from its Partner Capital Account, as the
case may be, without further action on the part of said Limited Partner and the provisions of Article 17.6 shall apply.
ARTICLE 13    TERMINATION
AND DISTRIBUTION
13.1
Termination.
The Partnership
shall continue in effect from the date of its formation in perpetuity, unless sooner terminated upon the occurrence of any one
or more of the following events:
(a) The death, adjudication of incompetence,
bankruptcy, dissolution, withdrawal, or removal of a General Partner who is the sole remaining General Partner, unless a majority
in interest of the Limited Partners within 90 days after such event elects to continue the Partnership and appoints a successor
General Partner; or
(b) The affirmative vote of a majority in
interest of the Limited Partners; provided, however, that any such termination shall be subject to the conditions set forth in
this Agreement.
13.2
Assumption of Agreements.
No
vote by the Limited Partners to terminate the Partnership pursuant to Section 13.1(b) shall be effective unless, prior to or concurrently
with such vote, there shall have been established procedures for the assumption of the Partnership's obligations arising
under any agreement to which the Partnership is a party and which is still in force immediately prior to such vote regarding termination,
and there shall have been an irrevocable appointment of an agent who shall be empowered to give and receive notices, reports and
payments under such agreements, and hold and exercise such other powers as are necessary to permit all other parties to such agreements
to deal with such agent as if the agent were the sole owner of the Partnership's interest, which procedures are agreed to
in writing by each of the other parties to such agreements.
13.3
Distribution
13.3.1  Upon termination of the Partnership, the affairs
of the Partnership shall be wound up and all of its debts and liabilities discharged or otherwise provided for in the order of
priority as provided by law. The fair market value of the remaining assets of the Partnership shall then be determined by the General
Partner. Thereupon, the assets of the Partnership shall be distributed to the Partners pro rata in accordance with their Units.
Each Partner shall receive its share of the assets in cash or in kind, and the proportion of such share that is received in cash
may vary from Partner to Partner, all as the General Partner in its sole discretion may decide. If such distributions are insufficient
to return to any Partner the full amount of its Capital Contributions, such Partner shall have no recourse against any other Partner.
13.3.2  The winding up of the affairs of the Partnership
and the distribution of its assets shall be conducted exclusively by the General Partner or its successor, which is hereby authorized
to do all acts authorized by law for these purposes. Without limiting the generality of the foregoing, the General Partner, in
carrying out such winding up and distribution, shall have full power and authority to sell all or any of the Partnership's
assets or to distribute the same in kind to the Partners.
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ARTICLE 14    MEETINGS
14.1
Meeting of Limited Partners.
Upon
the written request of 20% or more in interest of the Limited Partners, the General Partner may, but is not required to, call a
meeting of the Limited Partners. Notice of such meeting shall be given within 30 days after, and the meeting shall be held within
60 days after, receipt of such request. The General Partner may also call a meeting not less than 20 and not more than 60 days
prior to the meeting. Any such notice shall state briefly the purpose of the meeting, which shall be held at a reasonable time
and place.
ARTICLE 15    POWER
OF ATTORNEY
15.1
Appointment.
Each Limited
Partner and each Assignee hereby constitutes and appoints each of the General Partner and, if a liquidator shall have been selected,
the liquidator severally (and any successor to either thereof by merger, transfer, assignment, election or otherwise) and each
of their respective authorized officers and attorneys-in-fact with full power of substitution, as its true and lawful agent and
attorney-in-fact with full power and authority in its name, place and stead to:
(a) execute, swear to, acknowledge, deliver, file and record
in the appropriate public offices (i) all certificates, documents and other instruments (including, without limitation, this Agreement
and the Certificate of Limited Partnership and all amendments or restatements thereof) that the General Partner or the liquidator
deems necessary or appropriate to form, qualify or continue the existence or qualification of the Partnership as a limited partnership
(or a partnership in which the limited partners have limited liability) in the State of Delaware and in all other jurisdictions
in which the Partnership may conduct business or own property, (ii) all certificates, documents and other instruments that the
General Partner or the liquidator deems necessary or appropriate to reflect, in accordance with its terms, any amendment, change,
modification or restatement of this Agreement, (iii) all certificates, documents and other instruments (including, without limitation,
conveyances and a certificate of cancellation) that the General Partner or the liquidator deems necessary or appropriate to reflect
the dissolution and liquidation of the Partnership pursuant to the terms of this Agreement, (iv) all certificates, documents and
other instruments relating to the admission, withdrawal, removal or substitution of any Partner or the Capital Contribution of
any Partner, (v) all certificates, documents and other instruments relating to the determination of the rights, preferences and
privileges of Units issued, and (vi) all certificates documents and other instruments (including, without limitation, agreements
and a certificate of merger) relating to a merger or consolidation of the Partnership;
(b) execute, swear to, acknowledge, deliver,
file and record all ballots, consents, approval waivers, certificates and other instruments necessary or appropriate, in the sole
discretion of the General Partner or the liquidator, to make, evidence, give, confirm or ratify any vote, consent, approval, agreement
or other action that is made or given by the Partners hereunder or is consistent with the terms of this Agreement or is necessary
or appropriate, in the sole discretion of the General Partner or the liquidator, to effectuate the terms or intent of this Agreement,
provided, that when required by this Agreement that establishes a percentage of the Limited Partners or of the Limited Partners
of any class or series required to take any action, the General Partner or the liquidator may exercise the power of attorney made
in this Article 15 only after the necessary vote, consent or approval of the Limited Partners or of the Limited Partners of such
class or series;
15.2
Survival.
The foregoing power
of attorney is hereby declared to be irrevocable and a power coupled with an interest and it shall survive and not be affected
by the subsequent death, incompetence, disability, incapacity, dissolution, bankruptcy or termination of any Limited Partner or
Assignee and the transfer of all or any portion of such Limited Partner's or Assignee's Partnership interest and shall
extend to such Limited Partners or Assignee's heirs, successors, assigns and personal representatives. Each such Limited
Partner or Assignee hereby agrees to be bound by any representation made by the General Partner or the liquidator acting in good
faith pursuant to such power of attorney; and each such Limited Partner or Assignee hereby waives any and all defenses that may
be available to contest, negate or disaffirm the action of the General Partner or the liquidator taken in good faith under such
power of attorney. Each Limited Partner or Assignee shall execute and deliver to the General Partner or the liquidator, within
15 days after receipt of the General Partner's or the liquidator's request therefor, such further designations, powers
of attorney and other instruments as the General Partner or the liquidator deems necessary to effectuate this Agreement and the
purposes of the Partnership.
ARTICLE 16    CREATION
OF UNITS
16.1
General.
The Partnership will
create and redeem Units from time to time, but only in one or more Creation Baskets or Redemption Baskets (a block of 50,000 Units
shall be referred to as a "
Basket
"). The creation and redemption of Baskets will only be made in exchange for
delivery to the Partnership or the distribution by the Partnership of the amount of United States government securities with maturities
of 2 years or less ("
Treasuries
") and any cash represented by the Baskets being created or redeemed, the amount
of which will be based on the combined NAV of the number of Units included in the Baskets being created or redeemed determined
on the day the order to create or redeem Baskets is properly received.
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16.2
Creation Procedures.
On any
Business Day, a Participant, may place an order with the Partnership's marketing agent to create one or more Baskets. Purchase
orders must be placed by 12:00 PM New York time or the close of regular trading on the NYSE Arca, whichever is earlier; except
in the case of the initial order to purchase one or more Creation Baskets on the first day the Baskets are to be offered and sold,
when such orders shall be placed by 9:00 AM New York time on the day agreed to by the General Partner and the Initial Limited Partner.
The day on which the marketing agent receives a valid purchase order is the purchase order date. By placing a purchase order, a
Participant agrees to (1) deposit Treasuries, cash, or a combination of Treasuries and cash with the Partnership, and (2) if required
by the General Partner in its sole discretion, enter into or arrange for a block trade, an exchange for physical or exchange for
swap, or any other over-the-counter energy transaction (through itself or a designated acceptable broker) with the Partnership
for the purchase of a number and type of futures contracts at the closing settlement price for such contracts on the purchase order
date, as specified in the purchase order form attached to the Authorized Purchaser Agreement. Failure to consummate (1) and (2)
above shall result in the cancellation of the order. The number and type of contracts specified shall be determined by the General
Partner, in its sole discretion, to meet the Partnership's investment objective and shall be purchased as a result of the
Participant's purchase of Units. Prior to the delivery of Baskets for a purchase order, the Participant must also have wired
to the custodian the non-refundable creation transaction fee described in this Article 16.
16.3
Determination of Required Deposits.
The
total deposit required to create each Basket ("
Creation Basket Deposit
") is an amount of Treasuries and/or cash
with a value that is in the same proportion to the total assets of the Partnership (net of estimated accrued but unpaid fees, expenses
and other liabilities) on the date the order to purchase is properly received as the number of Units to be created under the purchase
order is in proportion to the total number of Units outstanding on the date the order is received. The General Partner determines,
in its sole discretion or in consultation with the administrator of the Partnership, the requirements for Treasuries and the amount
of cash, including the maximum permitted remaining maturity of a Treasury and cash that may be included in deposits to create Baskets.
The Partnership, or its marketing agent on the Partnership's behalf, will publish such requirements at the beginning of each
Business Day. The amount of cash deposit required is the difference between (i) the aggregate market value of the Treasuries included
in a Creation Basket Deposit as of 4:00 PM New York time on the date the order to purchase is properly received and (ii) the total
required deposit.
16.4
Delivery of Required Deposits.
A
Participant who places a purchase order is responsible for transferring to the Partnership's account with the custodian the
required amount of Treasuries and cash by the end of the third Business Day following the purchase order date. Upon receipt of
the deposit amount, the administrator will direct DTC to credit the number of Baskets ordered to the Participant's DTC account
on the third Business Day following the purchase order date. The expense and risk of delivery and ownership of Treasuries until
such Treasuries have been received by the custodian on behalf of the Partnership shall be borne solely by the Participant.
16.5
Rejection of Purchase Orders.
The
General Partner, or its marketing agent on its behalf, shall have the absolute right but no obligation to reject a purchase order
or a Creation Basket Deposit if: (1) it determines that the purchase order or the Creation Basket Deposit is not in proper form;
(2) the General Partner, in its sole discretion, believes that the purchase order or the Creation Basket Deposit would have adverse
tax consequences to the Partnership, Limited Partners or Unitholders; (3) the acceptance or receipt of the Creation Basket Deposit
would, in the opinion of counsel to the General Partner, be unlawful; or (4) circumstances outside the control of the General Partner,
marketing agent or custodian make it, for all practical purposes, not feasible to process creations of Baskets (including if the
General Partner determines that the investment alternatives available to the Partnership at that time will not enable it to meet
its investment objective). None of the General Partner, marketing agent or custodian will be liable for the rejection of any purchase
order or Creation Basket Deposit.
16.6
Creation Transaction Fee.
To
compensate the Partnership for its expenses in connection with the creation of Baskets, a Participant is required to pay a transaction
fee to the Partnership of $1,000 per order to create Baskets. An order may include multiple Baskets. The transaction fee may be
reduced, increased or otherwise changed by the General Partner. The General Partner shall notify DTC in advance of any change in
the transaction fee and will not implement any increase in the fee for the creation of Baskets until 30 days after the date of
the notice.
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ARTICLE 17    REDEMPTION
OF UNITS
17.1
General.
The procedures by
which a Participant can redeem one or more Baskets mirror the procedures for the creation of Baskets. On any Business Day, a Participant
may place an order with the marketing agent to redeem one or more Baskets. Redemption orders must be placed by 12:00 PM New York
time or the close of regular trading on the NYSE Arca, whichever is earlier. A redemption order so received is effective on the
date it is received in satisfactory form by the marketing agent. The day on which the marketing agent receives a valid redemption
order is the redemption order date. By placing a redemption order, a Participant agrees to (1) deliver the Baskets to be redeemed
through DTC's book-entry system to the Partnership's account with its custodian not later than 3:00 PM New York time
on the third Business Day following the effective date of the redemption order, and (2) if required by the General Partner in
its sole discretion, enter into or arrange for a block trade, an exchange for physical or exchange for swap, or any other over-the-counter
energy transaction (through itself or a designated acceptable broker) with the Partnership for the sale of a number and type of
futures contracts at the closing settlement price for such contracts on the redemption order date, as specified in the redemption
order form attached to the Authorized Purchaser Agreement. Failure to consummate (1) and (2) above shall result in the cancellation
of the order. The number and type of contracts specified shall be determined by the General Partner, in its sole discretion, to
meet the Partnership's investment objective and shall be sold as a result of the Participant's sale of Units. Prior
to the delivery of the redemption distribution for a redemption order, the Participant must also have wired to the Partnership's
account with the custodian the non-refundable redemption transaction fee described in this Article 17.
17.2
Determination of Redemption Distribution.
The
redemption distribution from the Partnership consists of a transfer to the redeeming Participant of an amount of Treasuries and/or
cash with a value that is in the same proportion to the total assets of the Partnership (net of estimated accrued but unpaid fees,
expenses and other liabilities) on the date the order to redeem is properly received as the number of Units to be redeemed under
the redemption order is in proportion to the total number of Units outstanding on the date the order to redeem is received. The
General Partner, directly or through its agent, will determine the requirements for Treasuries and/or the amount of cash, including
the maximum permitted remaining maturity of a Treasury, and the proportions of Treasuries and cash, that may be included in distributions
to redeem Baskets. The marketing agent will publish such requirements as of 4:00 PM New York time on the redemption order date.
17.3
Delivery of Redemption Distribution.
The
redemption distribution due from the Partnership is delivered to the Participant by 3:00 PM New York time on the third Business
Day following the redemption order date if, by 3:00 PM New York time on such third Business Day, the Partnership's DTC account
has been credited with the Baskets to be redeemed. If the Partnership's DTC account has not been credited with all of the
Baskets to be redeemed by such time, the redemption distribution is delivered to the extent of whole Baskets received. Any remainder
of the redemption distribution is delivered on the next Business Day to the extent of remaining whole Baskets received if the Partnership
(1) receives the fee applicable to the extension of the redemption distribution date which the General Partner may, from time to
time, determine and (2) the remaining Baskets to be redeemed are credited to the Partnership's DTC account by 3:00 PM New
York time on such next Business Day. Any further remaining amount of the redemption order shall be cancelled and the Participant
will indemnify the Partnership for any losses, if any, due to such cancellation, including but not limited to the difference in
the price of investments sold as a result of the redemption order and investments made to reflect that such order has been cancelled.
Pursuant to instruction from the General Partner, the custodian is also authorized to deliver the redemption distribution notwithstanding
that the Baskets to be redeemed are not credited to the Partnership's DTC account by 3:00 PM New York time on the third Business
Day following the redemption order date if the Participant has collateralized its obligation to deliver the Baskets through DTC's
book entry system on such terms as the General Partner may from time to time determine.
17.4
Suspension or Rejection of Redemption orders.
The
General Partner may, in its discretion, suspend the right of redemption, or postpone the redemption settlement date, (1) for any
period during which any of the ICE Futures Exchange, the NYSE Arca or the New York Stock Exchange is closed other than customary
weekend or holiday closings, or trading on the NYSE Arca or the ICE Futures Exchange is suspended or restricted, (2) for any period
during which an emergency exists as a result of which delivery, disposal or evaluation of Treasuries is not reasonably practicable,
or (3) for such other period as the General Partner determines to be necessary for the protection of the Limited Partners or the
Unitholders. None of the General Partner, the marketing agent or the custodian will be liable to any person or in any way for any
loss or damages that may result from any such suspension or postponement. The General Partner will reject a redemption order if
the order is not in proper form or if the fulfillment of the order, in the opinion of its counsel, might be unlawful. The General
Partner may also reject a redemption order if the number of units being redeemed would reduce the remaining outstanding units to
100,000 units (i.e., two baskets) or less.
17.5
Redemption Transaction Fee.
To
compensate the Partnership for its expenses in connection with the redemption of Baskets, a Participant is required to pay a transaction
fee to the Partnership of $1,000 per order to redeem Baskets. An order may include multiple Baskets. The transaction fee may be
reduced, increased or otherwise changed by the General Partner. The General Partner shall notify DTC in advance of any change in
the transaction fee and will not implement any increase in the fee for the redemption of Baskets until 30 days after the date of
the notice.
17.6
Required Redemption.
The General
Partner may, at any time, in its sole discretion, require any Limited Partner to withdraw entirely from the Partnership or to withdraw
a portion of its Partner Capital Account, by giving not less than 15 days' advance written notice to the Limited Partner
thus designated. In addition, the General Partner without notice may require at any time, or retroactively, withdrawal of all or
any portion of the Capital Account of any Limited Partner: (i) that the General Partner determines is a benefit plan investor (within
the meaning of the Department of Labor Regulation (s) 2510.3-101(f)(2)) in order for the assets of the Partnership not to be treated
as plan assets under ERISA; (ii) that made a misrepresentation to the General Partner in connection with its purchase of Units;
or (iii) whose ownership of Units would result in the violation of any law or regulations applicable to the Partnership or a Partner.
The Limited Partner thus designated shall withdraw from the Partnership or withdraw that portion of its Partner Capital Account
specified in such notice, as the case may be, as of the Close of Business on such date as determined by the General Partner. The
Limited Partner thus designated shall be deemed to have withdrawn from the Partnership or to have made a partial withdrawal from
its Partner Capital Account, as the case may be, without further action on the part of said Limited Partner.
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ARTICLE 18    MISCELLANEOUS
18.1
Notices.
Any notice, offer,
consent or other communication required or permitted to be given or made hereunder shall be in writing and shall be deemed to have
been sufficiently given or made when delivered personally to the party (or an officer of the party) to whom the same is directed,
or (except in the event of a mail strike) 5 Business Days after being mailed by first-class mail, postage prepaid, if to the Partnership
or to a General Partner, or if to a Limited Partner, to the address set forth on Exhibit B hereof. Any Partner may change its address
for the purpose of this Article by giving notice of such change to the Partnership, such change to become effective on the tenth
(10th) Business Day after such notice is given.
18.2
Waiver of Partition.
Each
Partner hereby irrevocably waives during the term of the Partnership any right that it may have to maintain any action for partition
with respect to any Partnership property.
18.3
Governing Law, Successors, Severability.
This
Agreement shall be governed by the laws of the State of Delaware, as such laws are applied by Delaware courts to agreements entered
into and to be performed in Delaware by and between residents of Delaware and shall, subject to the restrictions on transferability
set forth herein, bind and inure to the benefit of the heirs, executors, personal representatives successors and assigns of the
parties hereto. If any provision of this Agreement shall be held to be invalid, the remainder of this Agreement shall not be affected
thereby.
18.4
Consent to Jurisdiction.
The
General Partner and the Limited Partners hereby (i) irrevocably submit to the non-exclusive jurisdiction of any Delaware state
court or federal court sitting in Wilmington, Delaware in any action arising out of or relating to this Agreement, and (ii) consent
to the service of process by mail. Nothing herein shall affect the right of any party to serve legal process in any manner permitted
by law or affect its right to bring any action in any other court. Each party agrees that, in the event that any dispute arising
from or relating to this Agreement becomes subject to any judicial proceeding, such party, to the fullest extent permitted by applicable
law, waives any right it may otherwise have to (a) seek punitive or consequential damages, or (b) request a trial by jury.
18.5
Entire Agreement.
This Agreement
constitutes the entire agreement among the parties; it supersedes any prior agreement or understanding among them, oral or written,
all of which are hereby canceled. This Agreement may not be modified or amended other than pursuant to Articles 3 and 15.
18.6
Headings.
The headings in
this Agreement are inserted for convenience of reference only and shall not affect interpretation of this Agreement. Wherever from
the context it appears appropriate, each term stated in either the singular or the plural shall include the singular and the plural
and pronouns stated in either the masculine or the neuter gender shall include the masculine, the feminine and the neuter.
18.7
No Waiver.
The failure of
any Partner to seek redress for violation, or to insist on strict performance, of any covenant or condition of this Agreement shall
not prevent a subsequent act which would have constituted a violation from having the effect of an original violation.
18.8
Legends.
If certificates for
any interest or interests are issued evidencing a Limited Partner's interest in the Partnerships, each such certificate shall
bear such legends as may be required by applicable federal and state laws, or as may be deemed necessary or appropriate by the
General Partner to reflect restrictions upon transfer contemplated herein.
18.9
Counterparts.
This Agreement
may be executed in several counterparts, each of which shall be deemed an original but all of which shall constitute one and the
same instrument.
18.10
Relationship between the Agreement and the
Act.
Regardless of whether any provisions of this Agreement specifically refer to particular Default Rules (as defined
below), (a) if any provision of this Agreement conflicts with a Default Rule, the provision of this Agreement controls and the
Default Rule is modified or negated accordingly, and (b) if it is necessary to construe a Default Rule as modified or negated in
order to effectuate any provision of this Agreement, the Default Rule is modified or negated accordingly. For purposes of this
Article 18.10, "
Default Rule
" shall mean a rule stated in the Act that applies except to the extent it is negated
or modified through the provisions of the Partnership's certificate of limited partnership or this Agreement.
IN WITNESS WHEREOF, the parties hereto
have executed this Third Amended and Restated Agreement of Limited Partnership on the date first written above.
General Partner
United States Commodity Funds LLC
By:
Name:  Howard Mah
Title:  Management Director
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EXHIBIT A
FORM OF GLOBAL CERTIFICATE
Evidencing Units Representing Limited
Partner Interests
in United States Brent Oil Fund, LP
UNLESS THIS CERTIFICATE IS PRESENTED BY
AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE FUND OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUIRED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
This is to certify that Cede & Co.
is the owner and registered holder of this Certificate evidencing the ownership of issued and outstanding Limited Partner Units
("Units")
, each of which represents a fractional undivided unit of a beneficial interest in United States Brent
Oil Fund, LP (the
"Fund"
), a Delaware limited partnership.  Capitalized terms used not defined herein
have the meaning given to such terms in the Third Amended and Restated Agreement of Limited Partnership, as amended, supplemented
or restated to the date hereof (the "
Limited Partnership Agreement
").
At any given time, this Certificate shall
represent the limited units of beneficial interest in the Fund purchased by a particular authorized Participant on the date of
this Certificate. The Limited Partnership Agreement of the Fund provides for the deposit of cash with the Fund from time to time
and the issuance by the Fund of additional Creation Baskets representing the undivided units of beneficial interest in the assets
of the Fund. At the request of the registered holder, this Certificate may be exchanged for one or more Certificates issued to
the registered holder in such denominations as the registered holder may request; provided, however, that in the aggregate, the
Certificates issued to the registered holder hereof shall represent all Units outstanding at any given time.
Each authorized Participant hereby grants
and conveys all of its rights, title and interest in and to the Fund to the extent of the undivided interest represented hereby
to the registered holder of this Certificate subject to and in pursuance of the Limited Partnership Agreement, all the terms, conditions
and covenants of which are incorporated herein as if fully set forth at length.
The registered holder of this Certificate
is entitled at any time upon tender of this Certificate to the Fund, endorsed in blank or accompanied by all necessary instruments
of assignment and transfer in proper form, at its principal office in the State of California and, upon payment of any tax or other
governmental charges, to receive at the time and in the manner provided in the Limited Partnership Agreement, such holder's
ratable portion of the assets of the Fund for each Redemption Basket tendered and evidenced by this Certificate.
The holder of this Certificate, by virtue
of the purchase and acceptance hereof, assents to and shall be bound by the terms of the Limited Partnership Agreement, copies
of which are on file and available for inspection at reasonable times during business hours at the principal business office of
the General Partner.
The Fund may deem and treat the person
in whose name this Certificate is registered upon the books of the Fund as the owner hereof for all purposes and the Fund shall
not be affected by any notice to the contrary.
The Limited Partnership Agreement and this
Certificate are executed and delivered by United States Commodity Funds LLC as General Partner of the Fund, in the exercise of
the powers and authority conferred and vested in it by the Limited Partnership Agreement. The representations, undertakings and
agreements made on the part of the Fund in the Limited Partnership Agreement or this Certificate are made and intended not as personal
representations, undertakings and agreements by the General Partner, other than acting in its capacity as such, but are made and
intended for the purpose of binding only the Fund. Nothing in the Limited Partnership Agreement or this Certificate shall be construed
as imposing any liability on the General Partner, individually or personally, to fulfill any representation, undertaking or agreement
other than as provided in the Limited Partnership Agreement or this Certificate.
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THE HOLDER OF THIS SECURITY ACKNOWLEDGES
FOR THE BENEFIT OF UNITED STATES BRENT OIL FUND, LP THAT THIS SECURITY MAY NOT BE SOLD, OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED
IF SUCH TRANSFER WOULD VIOLATE THE THEN APPLICABLE FEDERAL OR STATE SECURITIES LAWS OR RULES AND REGULATIONS OF THE SECURITIES
AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION OR ANY OTHER GOVERNMENTAL AUTHORITY WITH JURISDICTION OVER SUCH TRANSFER,
TERMINATE THE EXISTENCE OR QUALIFICATION OF UNITED STATES BRENT OIL FUND, LP UNDER THE LAWS OF THE STATE OF DELAWARE, OR CAUSE
UNITED STATES BRENT OIL FUND, LP TO BE TREATED AS AN ASSOCIATION TAXABLE AS A CORPORATION OR OTHERWISE TO BE TAXED AS AN ENTITY
FOR FEDERAL INCOME TAX PURPOSES (TO THE EXTENT NOT ALREADY SO TREATED OR TAXED). UNITED STATES COMMODITY FUNDS LLC, THE GENERAL
PARTNER OF UNITED STATES BRENT OIL FUND, LP, MAY IMPOSE ADDITIONAL RESTRICTIONS ON THE TRANSFER OF THIS SECURITY IF IT RECEIVES
AN OPINION OF COUNSEL THAT SUCH RESTRICTIONS ARE NECESSARY TO AVOID A SIGNIFICANT RISK OF UNITED STATES BRENT OIL FUND, LP BECOMING
TAXABLE AS A CORPORATION OR OTHERWISE BECOMING TAXABLE AS AN ENTITY FOR FEDERAL INCOME TAX PURPOSES. THE RESTRICTIONS SET FORTH
ABOVE SHALL NOT PRECLUDE THE SETTLEMENT OF ANY TRANSACTIONS INVOLVING THIS SECURITY ENTERED INTO THROUGH THE FACILITIES OF ANY
NATIONAL SECURITIES EXCHANGE ON WHICH THIS SECURITY IS LISTED OR ADMITTED TO TRADING.
This Certificate shall not become valid
or binding for any purpose until properly executed by the General Partner.
IN WITNESS WHEREOF, the General Partner
of the Fund has caused this Certificate to be executed in its name by the manual or facsimile signature of one of its Authorized
Persons.
United States Commodity Funds LLC,
as General Partner
By:
Date:
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EXHIBIT B
ADDRESSES FOR NOTICE
United States Commodity Funds LLC
1999 Harrison Street, Suite 1530
Oakland, California 94612
with a copy to
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA  02109
Attention: Manager, Fund Administration Department
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EXHIBIT C
APPLICATION FOR TRANSFER OF UNITS
Transferees of Units must execute and deliver
this application to
United States Brent Oil Fund, LP, c/o United States Commodity Funds LLC, 1999 Harrison Street, Suite 1530,
Oakland, California 94612,
to be admitted as limited partners to United States Brent Oil Fund, LP.
The undersigned (
"Assignee"
)
hereby applies for transfer to the name of the Assignee of the Units evidenced hereby and hereby certifies to United States Brent
Oil Fund, LP (the
"Partnership"
) that the Assignee (including to the best of Assignee's knowledge, any
person for whom the Assignee will hold the Units) is an Eligible Holder.*
The Assignee (a) requests admission as
a Limited Partner and agrees to comply with and be bound by, and hereby executes, the Third Amended and Restated Agreement of Limited
Partnership of the Partnership, as amended, supplemented or restated to the date hereof (the
"Limited Partnership Agreement"
),
(b) represents and warrants that the Assignee has all right, power and authority and, if an individual, the capacity necessary
to enter into the Limited Partnership Agreement, (c) appoints the General Partner of the Partnership and, if a Liquidator shall
be appointed, the Liquidator of the Partnership as the Assignee's attorney-in-fact to execute, swear to, acknowledge and
file any document, including, without limitation, the Limited Partnership Agreement and any amendment thereto and the Certificate
of Limited Partnership of the Partnership and any amendment thereto, necessary or appropriate for the Assignee's admission
as a Substituted Limited Partner and as a party to the Limited Partnership Agreement, (d) gives the powers of attorney provided
for in the Limited Partnership Agreement, and (e) makes the waivers and gives the consents and approvals contained in the Limited
Partnership Agreement. Capitalized terms used but not defined herein have the meanings given to such terms in the Limited Partnership
Agreement.
Date:
Social Security or other identifying
Signature of Assignee
Number of Assignee
Purchase Price including commissions, if any
Name and Address of Assignee
Type of Entity (check one):
¨
Individual
¨
Partnership
¨
Trust
¨
Other (specify)
If not an Individual (check one):
the entity is subject to United States
federal income taxation on the income generated by the Partnership;
the entity is not subject to United States
federal income taxation, but it is a pass-through entity and all of its beneficial owners are subject to United States federal
income taxation on the income generated by the Partnership;
the entity is not subject to United States
federal income taxation and it is (a) not a pass-through entity or (b) a pass-through entity, but not all of its beneficial owners
are subject to United States federal income taxation on the income generated by the Partnership.
Important Note
—
by checking this box, the Assignee is contradicting its certification that it is an Eligible Holder.
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* The Term
"Eligible Holder"
means (a) an individual or entity subject to United States federal income taxation on the income generated by the Partnership;
or (b) an entity not subject to United States federal income taxation on the income generated by the Partnership, so long as all
of the entity's owners are subject to United States federal income taxation on the income generated by the Partnership. Individuals
or entities are subject to taxation, in the context of defining an Eligible Holder, to the extent they are taxable on the items
of income and gain allocated by the Partnership. Schedule I hereto contains a list of various types of investors that are categorized
and identified as either "Eligible Holders" or "Non-Eligible Holders."
Nationality (check one):
¨
U.S.
Citizen, Resident or Domestic Entity**
¨
Non-resident Alien**
¨
Foreign
Corporation**
** As those terms are defined in the Code.
If the U.S. Citizen, Resident or Domestic
Entity box is checked, the following certification must be completed.
Under Section 1445(e) of the Internal Revenue
Code of 1986, as amended (the
"Code"
), the Partnership must withhold tax with respect to certain transfers of
property if a holder of an interest in the Partnership is a foreign person. To inform the Partnership that no withholding is required
with respect to the undersigned interestholder's interest in it, the undersigned hereby certifies the following (or, if applicable,
certifies the following on behalf of the interestholder).
Complete Either A or B:
A. Individual Interestholder
1. I am not a non-resident alien for purposes of U.S. income
taxation.
2. My U.S. taxpayer identification number
(Social Security Number) is ____________
3. My home address is __________________
B. Partnership, Corporation or Other Interestholder
1. The interestholder is not a foreign
corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined in the Code and Treasury regulations).
2. The interestholder's U.S. employer
identification number is __________________
3. The interestholder's office address
and place of incorporation (if applicable) is __________________
The interestholder agrees to notify the
Partnership within sixty (60) days of the date the interestholder becomes a foreign person.
The interestholder understands that this
certificate may be disclosed to the Internal Revenue Service by the Partnership and that any false statement contained herein could
be punishable by fine, imprisonment or both.
Under penalties of perjury, I declare that
I have examined this certification and, to the best of my knowledge and belief, it is true, correct and complete and, if applicable,
I further declare that I have authority to sign this document on behalf of:
Name of Interestholder _________________________________________________________________________________
Signature and Date _______________________________________________________________________
Title (if applicable) ______________________________________________________________________
Note: If the Assignee is a broker, dealer, bank, trust company,
clearing corporation, other nominee holder or an agent of any of the foregoing, and is holding for the account of any other person,
this application should be completed by an officer thereof or, in the case of a broker or dealer, by a registered representative
who is a member of a registered national securities exchange or a member of FINRA, or, in the case of any other nominee holder,
a person performing a similar function. If the Assignee is a broker, dealer, bank, trust company, clearing corporation, other nominee
owner or an agent of any of the foregoing, the above certification as to any person for whom the Assignee will hold the Units shall
be made to the best of the Assignee's knowledge.
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STATEMENT OF ADDITIONAL INFORMATION
UNITED STATES BRENT OIL FUND, LP
This statement of additional information
is the second part of the prospectus for United States Brent Oil Fund, LP ("USBO"). The first part of the prospectus
is the disclosure document. The disclosure document and the statement of additional information are bound together, and both parts
contain important information.
Before you decide whether to invest,
you should read this entire prospectus carefully and consider the risk factors beginning on page 8.
This statement of additional information
and accompanying disclosure document are both dated May 1, 2013.
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UNITED STATES BRENT OIL FUND, LP
Statement of Additional Information
TABLE OF CONTENTS
Page
The Commodity Interest Markets
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Potential Advantages of Investment
SAI-8
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The Commodity Interest Markets
General
The CEA governs the regulation of commodity
interest transactions, markets and intermediaries. The CEA provides for varying degrees of regulation of commodity interest transactions
depending upon: (1) the type of instrument being traded (
e.g.,
contracts for future delivery, options, swaps or spot
contracts), (2) the type of commodity underlying the instrument (distinctions are made between instruments based on agricultural
commodities, energy and metals commodities and financial commodities), (3) the nature of the parties to the transaction (retail,
eligible contract participant, or eligible commercial entity), (4) whether the transaction is entered into on a principal-to-principal
or intermediated basis, (5) the type of market on which the transaction occurs, and (6) whether the transaction is subject
to clearing through a clearing organization.
The offer and sale of units of USBO, as
well as units of each of the Related Public Funds, is registered under the 1933 Act. USBO and the Related Public Funds are subject
to the requirements of the Securities Act, the Exchange Act and the rules and regulations adopted thereunder as administered by
the SEC. Firm's participation in the distribution of units are regulated as described above, as well as by the self-regulatory
association, FINRA.
Futures Contracts
A futures contract is a standardized contract
traded on, or subject to the rules of, an exchange that calls for the future delivery of a specified quantity and type of a commodity
at a specified time and place. Futures contracts are traded on a wide variety of commodities, including agricultural products,
bonds, stock indices, interest rates, currencies, energy and metals. The size and terms of futures contracts on a particular commodity
are identical and are not subject to any negotiation, other than with respect to price and the number of contracts traded between
the buyer and seller.
The contractual obligations of a buyer
or seller may generally be satisfied by taking or making physical delivery of the underlying commodity or by making an offsetting
sale or purchase of an identical futures contract on the same or linked exchange before the designated date of delivery. The difference
between the price at which the futures contract is purchased or sold and the price paid for the offsetting sale or purchase, after
allowance for brokerage commissions, constitutes the profit or loss to the trader. Some futures contracts, such as stock index
contracts, settle in cash (reflecting the difference between the contract purchase/sale price and the contract settlement price)
rather than by delivery of the underlying commodity.
In market terminology, a trader who purchases
a futures contract is long in the market and a trader who sells a futures contract is short in the market. Before a trader closes
out his long or short position by an offsetting sale or purchase, his outstanding contracts are known as open trades or open positions.
The aggregate amount of open positions held by traders in a particular contract is referred to as the open interest in such contract.
Forward Contracts
A forward contract is a contractual obligation
to purchase or sell a specified quantity of a commodity at or before a specified date in the future at a specified price and, therefore,
is economically similar to a futures contract. Unlike futures contracts, however, forward contracts are typically traded in the
over-the-counter markets and are not standardized contracts. Forward contracts for a given commodity are generally available for
various amounts and maturities and are subject to individual negotiation between the parties involved. Moreover, generally there
is no direct means of offsetting or closing out a forward contract by taking an offsetting position as one would a futures contract
on a U.S. exchange. If a trader desires to close out a forward contract position, he generally will establish an opposite position
in the contract but will settle and recognize the profit or loss on both positions simultaneously on the delivery date. Thus, unlike
in the futures contract market where a trader who has offset positions will recognize profit or loss immediately, in the forward
market a trader with a position that has been offset at a profit will generally not receive such profit until the delivery date,
and likewise a trader with a position that has been offset at a loss will generally not have to pay money until the delivery date.
In recent years, however, the terms of forward contracts have become more standardized, and in some instances such contracts now
provide a right of offset or cash settlement as an alternative to making or taking delivery of the underlying commodity.
In general, the CFTC does not regulate
the interbank and forward foreign currency markets with respect to transactions in contracts between certain sophisticated counterparties
such as USBO or between certain regulated institutions and retail investors. Although U.S. banks are regulated in various ways
by the Federal Reserve Board, the Comptroller of the Currency and other U.S. federal and state banking officials, banking authorities
do not regulate the forward markets to the same extent that the swap markets will be regulated by the CFTC once the Dodd-Frank
Act is fully implemented. At a minimum, over-the-counter currency forwards, options and swaps will be subject to heightened recordkeeping,
reporting and business conduct standards.
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On November 16, 2012, the Secretary of
the Treasury issued a final determination that exempts both foreign exchange swaps and foreign exchange forwards from the definition
of "swap" and, by extension, additional regulatory requirements (such as clearing and margin). The final determination
does not extend to other foreign exchange derivatives, such as foreign exchange options, currency swaps, and non-deliverable forwards.
While the U.S. government does not currently
impose any restrictions on the movements of currencies, it could choose to do so. The imposition or relaxation of exchange controls
in various jurisdictions could significantly affect the market for that and other jurisdictions' currencies. Trading in the
interbank market also exposes USBO to a risk of default since failure of a bank with which USBO had entered into a forward contract
would likely result in a default and thus possibly substantial losses to USBO.
Options on Futures Contracts
Options on futures contracts are standardized
contracts traded on an exchange. An option on a futures contract gives the buyer of the option the right, but not the obligation,
to take a position at a specified price (the striking, strike, or exercise price) in the underlying futures contract or underlying
interest. The buyer of a call option acquires the right, but not the obligation, to purchase or take a long position in the underlying
interest, and the buyer of a put option acquires the right, but not the obligation, to sell or take a short position in the underlying
interest.
The seller, or writer, of an option is
obligated to take a position in the underlying interest at a specified price opposite to the option buyer if the option is exercised.
Thus, the seller of a call option must stand ready to take a short position in the underlying interest at the strike price if the
buyer should exercise the option. The seller of a put option, on the other hand, must stand ready to take a long position in the
underlying interest at the strike price.
A call option is said to be in-the-money
if the strike price is below current market levels and out-of-the-money if the strike price is above current market levels. Conversely,
a put option is said to be in-the-money if the strike price is above the current market levels and out-of-the-money if the strike
price is below current market levels.
Options have limited life spans, usually
tied to the delivery or settlement date of the underlying interest. Some options, however, expire significantly in advance of such
date. The purchase price of an option is referred to as its premium, which consists of its intrinsic value (which is related to
the underlying market value) plus its time value. As an option nears its expiration date, the time value shrinks and the market
and intrinsic values move into parity. An option that is out-of-the-money and not offset by the time it expires becomes worthless.
On certain exchanges, in-the-money options are automatically exercised on their expiration date, but on others unexercised options
simply become worthless after their expiration date.
Regardless of how much the market swings,
the most an option buyer can lose is the option premium. The option buyer deposits his premium with his broker, and the money goes
to the option seller. Option sellers, on the other hand, face risks similar to participants in the futures markets. For example,
since the seller of a call option is assigned a short futures position if the option is exercised, his risk is the same as someone
who initially sold a futures contract. Because no one can predict exactly how the market will move, the option seller posts margin
to demonstrate his ability to meet any potential contractual obligations.
Options on Forward Contracts or Commodities
Options on forward contracts or commodities
operate in a manner similar to options on futures contracts. An option on a forward contract or commodity gives the buyer of the
option the right, but not the obligation, to take a position at a specified price in the underlying forward contract or commodity.
However, similar to forward contracts, options on forward contracts or on commodities are individually negotiated contracts between
counterparties and are typically traded in the over-the-counter market. Therefore, options on forward contracts and physical commodities
possess many of the same characteristics of forward contracts with respect to offsetting positions and credit risk that are described
above.
Swap Contracts
Swap transactions generally involve contracts
between two parties to exchange a stream of payments computed by reference to a notional amount and the price of the asset that
is the subject of the swap. Swap contracts are principally traded off-exchange, although certain swap contracts are also traded
in electronic trading facilities and cleared through clearing organizations.
Swaps are usually entered into on a net
basis, that is, the two payment streams are netted out in a cash settlement on the payment date or dates specified in the agreement,
with the parties receiving or paying, as the case may be, only the net amount of the two payments. Swaps do not generally involve
the delivery of underlying assets or principal. Accordingly, the risk of loss with respect to swaps is generally limited to the
net amount of payments that the party is contractually obligated to make. In some swap transactions one or both parties may require
collateral deposits from the counterparty to support that counterparty's obligation under the swap agreement. If the counterparty
to such a swap defaults, the risk of loss consists of the net amount of payments that the party is contractually entitled to receive
less any collateral deposits it is holding.
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Some swap transactions are cleared through
central counterparties. These transactions, known as cleared swaps, involve two counterparties first agreeing to the terms of a
swap transaction, then submitting the transaction to a clearing house that acts as the central counterparty. Once accepted by the
clearing house, the original swap transaction is novated and the central counterparty becomes the counterparty to a trade with
each of the original parties based upon the trade terms determined in the original transaction. In this manner each individual
swap counterparty reduces its risk of loss due to counterparty nonperformance because the clearing house acts as the counterparty
to each transaction.
Regulation
Futures exchanges in the United States
are subject to varying degrees of regulation under the CEA depending on whether such exchange is a designated contract market,
exempt board of trade or electronic trading facility. Clearing organizations are also subject to the CEA and the rules and regulations
adopted thereunder and administered by the CFTC. The CFTC is the governmental agency charged with responsibility for regulation
of futures exchanges and commodity interest trading conducted on those exchanges. The CFTC's function is to implement the
CEA's objectives of preventing price manipulation and excessive speculation and promoting orderly and efficient commodity
interest markets. In addition, the various exchanges and clearing organizations themselves exercise regulatory and supervisory
authority over their member firms.
The CFTC also regulates the activities
of "commodity trading advisors" and "commodity pool operators" and the CFTC has adopted regulations with
respect to certain of such persons' activities. Pursuant to its authority, the CFTC requires a CPO, such as the General Partner,
to keep accurate, current and orderly records with respect to each pool it operates. The CFTC may suspend, modify or terminate
the registration of any registrant for failure to comply with CFTC rules or regulations. Suspension, restriction or termination
of the General Partner's registration as a CPO would prevent it, until such time (if any) as such registration were to be
reinstated, from managing, and might result in the termination of, USBO or the Related Public Funds.
The CEA also gives the states certain powers
to enforce its provisions and the regulations of the CFTC.
Under certain circumstances, the CEA grants
unitholders the right to institute a reparations proceeding before the CFTC against the General Partner (as a registered commodity
pool operator), as well as those of their respective employees who are required to be registered under the CEA. Unitholders may
also be able to maintain a private right of action for certain violations of the CEA.
Pursuant to authority in the CEA, the NFA
has been formed and registered with the CFTC as a registered futures association. The NFA is the only self-regulatory association
for commodities professionals other than the exchanges. As such, the NFA promulgates rules governing the conduct of commodity professionals
and disciplines those professionals that do not comply with such standards. The CFTC has delegated to the NFA responsibility for
the registration of commodity pool operation. The General Partner is a member of the NFA. As a member of the NFA, the General Partner
is subject to NFA standards relating to fair trade practices, financial condition, and consumer protection. The CFTC is prohibited
by statute from regulating trading on foreign commodity exchanges and markets.
The CEA requires all futures commission
merchants ("FCMs"), such as USBO's clearing brokers, to meet and maintain specified fitness and financial requirements,
to segregate customer funds from proprietary funds and account separately for all customers' funds and positions, and to
maintain specified books and records open to inspection by the staff of the CFTC. The CFTC has similar authority over introducing
brokers, or persons who solicit or accept orders for commodity interest trades but who do not accept margin deposits for the execution
of trades. The CEA authorizes the CFTC to regulate trading by futures commission merchants and by their officers and directors,
permits the CFTC to require action by exchanges in the event of market emergencies, and establishes an administrative procedure
under which customers may institute complaints for damages arising from alleged violations of the CEA. The CEA also gives the states
powers to enforce its provisions and the regulations of the CFTC.
The regulations of the CFTC and the NFA
prohibit any representation by a person registered with the CFTC or by any member of the NFA, that registration with the CFTC,
or membership in the NFA, in any respect indicates that the CFTC or the NFA, as the case may be, has approved or endorsed that
person or that person's trading program or objectives. The registrations and memberships of the parties described in this
summary must not be considered as constituting any such approval or endorsement. Likewise, no futures exchange has given or will
give any similar approval or endorsement.
The regulation of commodity interest trading
in the United States and other countries is an evolving area of the law. The various statements made in this summary are subject
to modification by legislative action and changes in the rules and regulations of the CFTC, the NFA, the futures exchanges, clearing
organizations and other regulatory bodies.
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On July 21, 2010, a broad financial
regulatory reform bill, the Dodd-Frank Act, was signed into law. All of the Dodd-Frank Act's provisions became effective
on July 16, 2011, but the actual implementation of some of the provisions is subject to continuing uncertainty because implementing
rules and regulations have not been completely finalized and have been challenged in court. Pending final resolution of all applicable
regulatory requirements, some specific examples of how the new Dodd-Frank Act provisions and rules adopted thereunder could impact
USBO are discussed below.
Futures Contracts and Position Limits
Provisions in the Dodd-Frank Act include
the requirement that position limits be established on a wide range of commodity interests including energy-based and other commodity
futures contracts, certain cleared commodity swaps and certain over-the-counter commodity contracts; new registration, recordkeeping,
capital and margin requirements for "swap dealers" and "major swap participants" as determined by the new
law and applicable regulations; and the forced use of clearinghouse mechanisms for most swap transactions that are currently entered
into in the over-the-counter market. The new law and the rules thereunder may negatively impact USBO's ability to meet its
investment objective either through limits or requirements imposed on it or upon its counterparties. Further, increased regulation
of, and the imposition of additional costs on, swap transactions under the new legislation and implementing regulations could cause
a reduction in the swap market and the overall derivatives markets, which could restrict liquidity and adversely affect USBO. In
particular, new position limits imposed on USBO or its counterparties may impact USBO's ability to invest in a manner that
most efficiently meets its investment objective, and new requirements, including capital and mandatory clearing, may increase the
cost of USBO's investments and doing business, which could adversely impact the ability of USBO to achieve its investment
objective.
In October 2011, the CFTC finalized rules
that establish position limits with respect to 28 physical delivery commodity futures and options contracts, as well as to forward
contracts that are economically equivalent to such contracts (the "Position Limit Rules"). The Position Limit Rules
were scheduled to become effective on October 12, 2012. However, on September 28, 2012, the United States District Court for the
District of Columbia vacated these regulations on the basis of ambiguities in the provisions of the Commodity Exchange Act (as
modified by the Dodd-Frank Act) upon which the regulations were based. In its September 28th decision, the court remanded the Position
Limit Rules to the CFTC with instructions to use its expertise and experience to resolve the ambiguities in the statute. On November
15, 2012, the CFTC indicated that it would move forward with an appeal of the District Court's decision to vacate the Position
Limit Rules. At this time, it is not possible to predict how the CFTC's appeal could affect USBO, but it may be substantial
and adverse. Furthermore, until such time as the appeal is resolved or, if applicable revisions to the Position Limit Rules are
proposed and adopted, the regulatory architecture in effect prior to the enactment of the Position Limit Rules will govern transactions
in commodities and related derivatives. As a result, USBO may be limited with respect to the size of its investments in any commodities
subject to these limits. Finally, subject to certain narrow exceptions, the vacated Position Limit Rules would have required the
aggregation, for purposes of the position limits, of all positions in the 28 Referenced Contracts held by a single entity and its
affiliates, regardless of whether such position existed on U.S. futures exchanges, non-U.S. futures exchanges, in cleared swaps
or in over-the-counter swaps. The CFTC is presently considering new aggregation rules, under a rulemaking proposal that is distinct
from the Position Limit Rules. At this time, it is unclear how any modified aggregation rules may affect USBO, but it may be substantial
and adverse. By way of example, the aggregation rules in combination with any potential revised Position Limit Rules may negatively
impact the ability of USBO to meet its investment objectives through limits that may inhibit the General Partner's ability
to sell additional Creation Baskets of USBO.
Based on its current understanding of the
final position limit regulations, the General Partner does not anticipate significant negative impact on the ability of USBO to
achieve its investment objective.
"Swap" Transactions
The Dodd-Frank Act imposes new regulatory
requirements on certain "swap" transactions that USBO is authorized to engage in that may ultimately impact the ability
of USBO to meet its investment objective. On August 13, 2012, the CFTC and the SEC published joint final rules defining the terms
"swap" and "security- based swap." The term "swap" is broadly defined to include various types
of over-the-counter derivatives, including swaps and options. The effective date of these final rules was October 12, 2012.
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The Dodd-Frank Act requires that certain
transactions ultimately falling within the definition of "swap" be executed on organized exchanges or "swap execution
facilities" and cleared through regulated clearing organizations (which are referred to in the Dodd-Frank Act as "derivative
clearing organizations" ("DCOs")), if the CFTC mandates the central clearing of a particular contract. However,
the CFTC has not issued any mandatory clearing determinations and therefore, it is currently unknown which swaps will be subject
to such trading and clearing requirements. If a swap is required to be cleared, the initial margin will be set by the clearing
organization, subject to certain regulatory requirements and guidelines. Initial and variation margin requirements for swap dealers
and major swap participants who enter into uncleared swaps and capital requirements for swap dealers and major swap participants
who enter into both cleared and uncleared trades will be set by the CFTC, the SEC or the applicable "Prudential Regulator."
On May 23, 2012, the CFTC published final regulations, which became effective as of July 23, 2012, to determine which entities
will be regulated as "swap dealers" and "major swap participants" and thus have to comply with these capital
and margin requirements (as well as a multitude of other requirements under the Dodd-Frank Act). Most of the requirements imposed
became effective on October 12, 2012, when additional final rules defining the terms "swap," "security-based
swap," and "mixed swap" became effective. However, on October 11, 2012 and October 12, 2012, the CFTC issued
several no-action letters and interpretive guidance which delayed much of the implementation of the requirements from October 12,
2012 until December 31, 2012. Increased regulation of, and the imposition of additional costs on, swap transactions could have
an adverse effect on USBO by, for example, reducing the size of and therefore liquidity in the derivatives market, increasing transaction
costs and decreasing the ability to customize derivative transactions.
On February 7, 2012, the CFTC published
a rule requiring each FCM and DCO to segregate cleared swaps and related collateral posted by a customer of the FCM from the assets
of the FCM or DCO, although such property can be commingled with the property of other cleared swaps customers of the FCM or DCO.
This rule addresses losses incurred by a DCO in a so-called "double default" scenario in which a customer of an FCM
defaults in its obligations to the FCM and the FCM, in turn, defaults in its obligations to the DCO. Under this scenario, the DCO
can only access the collateral attributable to other customers of the DCO whose cleared swap positions are in a loss position following
the primary customer's default. This rule became effective on November 8, 2012. Some market participants have expressed concern
that the requirements of this segregation rule may result in higher initial margins or higher fees. USBO does not anticipate any
impact to their operations in order to meet the requirements of the new rule.
Additionally, the CFTC published rules
on February 17, 2012 and April 3, 2012 that require "swap dealers" and "major swap participants" to: 1)
adhere to business conduct standards, 2) implement policies and procedures to ensure compliance with the CEA and 3) maintain records
of such compliance. These new requirements may impact the documentation requirements for both cleared and non-cleared swaps and
cause swap dealers and major swap participants to face increased compliance costs that, in turn, may be passed along to counterparties
(such as USBO) in the form of higher fees and expenses that related to trading swaps.
On February 24, 2012, the CFTC amended
certain disclosure obligations to require that the operator of a commodity pool that invests in swaps include standardized swap
risk disclosures in the pool's disclosure documents by December 31, 2012.
On December 5, 2012, the CFTC's Division
of Market Oversight issued a letter providing swap dealers with time-limited no-action relief from swap data reporting obligations
with respect to equity swaps, foreign exchange swaps and other commodity swaps. For these asset classes, the letter provides swap
dealers with reporting relief (i) with respect to real-time price reporting and regular swap reporting (under Part 43 and Part
45 of the CFTC's regulations, respectively), until February 28, 2013, and (ii) historical swap reporting requirements (under
Part 46 of the CFTC's regulations) until March 30, 2013.
On December 21, 2012, the CFTC's
Division of Market Oversight issued two letters providing certain swap dealers with time-limited no-action relief from some swap
data reporting obligations. One letter provides relief from reporting requirements for branches of swap dealers located in emerging
markets who encounter technical difficulties in complying with the reporting rules. The letter also provides that swap dealers
may delay reporting compliance for certain complex and exotic swaps until April 30, 2012.
Under a second letter, all swap dealers
have until April 10, 2013 to report certain information about their counterparties, including: status as a major swap participant,
a financial entity, a U.S. person or a commercial end-user.
On December 18, 2012, the CFTC deferred
the compliance date for many of the Dodd-Frank Act's external business conduct standards from December 31, 2012 to May 1,
2013, and for some requirements to July 1, 2013, providing swap dealers an additional four to six months from the original compliance
date.
The effect of the future regulatory change
on USBO is impossible to predict, but it could be substantial and adverse.
Commodity Margin
Original or initial margin is the minimum
amount of funds that must be deposited by a commodity interest trader with the trader's broker to initiate and maintain an
open position in futures contracts. Maintenance margin is the amount (generally less than the original margin) to which a trader's
account may decline before he must deliver additional margin. A margin deposit is like a cash performance bond. It helps assure
the trader's performance of the futures contracts that he or she purchases or sells. Futures contracts are customarily bought
and sold on initial margin that represents a very small percentage (ranging upward from less than 5%) of the aggregate purchase
or sales price of the contract. Because of such low margin requirements, price fluctuations occurring in the futures markets may
create profits and losses that, in relation to the amount invested, are greater than are customary in other forms of investment
or speculation. As discussed below, adverse price changes in the futures contract may result in margin requirements that greatly
exceed the initial margin. In addition, the amount of margin required in connection with a particular futures contract is set from
time to time by the exchange on which the contract is traded and may be modified from time to time by the exchange during the term
of the contract.
Brokerage firms, such as USBO's clearing
brokers, carrying accounts for traders in commodity interest contracts may not accept lower, and generally require higher, amounts
of margin as a matter of policy to further protect themselves. The clearing brokers require USBO to make margin deposits equal
to exchange minimum levels for all commodity interest contracts. This requirement may be altered from time to time in the clearing
brokers' discretion.
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Regulators have not yet finalized the Dodd-Frank
rules regarding initial margin levels for over-the-counter derivatives. It is possible that such levels may be higher than those
for futures contracts. Also, initial margin requirements for non-cleared swaps will be subject to higher margin requirements than
cleared swaps. And, under pending rule proposals, USBO may be required to post, but not be entitled to receive, initial and variation
margin in respect of non-cleared swaps. Until such time as the regulators finalize these margin rules, trading in the over-the-counter
markets where no clearing facility is provided generally will not require margin per se. Rather, it will involve the extension
of credit between counterparties that is secured by transfers of credit support and/or independent amounts. Credit support is transferred
between counterparties in respect of the open over-the-counter derivatives entered into between them, while independent amounts
are fixed amounts posted by one or both counterparties at the execution of a particular over-the-counter transaction.
When a trader purchases an option, there
is no margin requirement; however, the option premium must be paid in full. When a trader sells an option, on the other hand, he
or she is required to deposit margin in an amount determined by the margin requirements established for the underlying interest
and, in addition, an amount substantially equal to the current premium for the option. The margin requirements imposed on the selling
of options, although adjusted to reflect the probability that out-of-the-money options will not be exercised, can in fact be higher
than those imposed in dealing in the futures markets directly. Complicated margin requirements apply to spreads and conversions,
which are complex trading strategies in which a trader acquires a mixture of options positions and positions in the underlying
interest.
Margin requirements are computed each day
by a trader's clearing broker. When the market value of a particular open commodity interest position changes to a point
where the margin on deposit does not satisfy maintenance margin requirements, a margin call is made by the broker. If the margin
call is not met within a reasonable time, the broker may close out the trader's position. With respect to USBO's trading,
USBO (and not its investors personally) is subject to margin calls.
Finally, many major U.S. exchanges have
passed certain cross margining arrangements involving procedures pursuant to which the futures and options positions held in an
account would, in the case of some accounts, be aggregated and margin requirements would be assessed on a portfolio basis, measuring
the total risk of the combined positions.
Potential Advantages of Investment
The Advantages of Non-Correlation
Given that historically, the price of crude
oil and of Futures Contracts and Other Crude Oil-Related Investments has had very little correlation to the stock and bond markets,
the General Partner believes that the performance of USBO should also exhibit a substantial degree of non-correlation with the
performance of traditional equity and debt portfolio components, in part because of the ease of selling commodity interests short.
This feature of many commodity interest contracts — being able to be long or short a commodity interest position with similar
ease — means that profit and loss from commodity interest trading is not dependent upon economic prosperity or stability.
However, non-correlation will not provide
any diversification advantages unless the non-correlated assets are outperforming other portfolio assets, and it is entirely possible
that USBO may not outperform other sectors of an investor's portfolio, or may produce losses. Additionally, although adding
USBO's units to an investor's portfolio may provide diversification, USBO is not a hedging mechanism vis-à-vis
traditional debt and equity portfolio components and you should not assume that USBO units will appreciate during periods of inflation
or stock and bond market declines.
Non-correlated performance should not be
confused with negatively correlated performance. Negative correlation occurs when the performance of two asset classes are in opposite
direction to each other. Non-correlation means only that USBO's performance will likely have little relation to the performance
of equity and debt instruments, reflecting the General Partner's belief that certain factors that affect equity and debt
prices may affect USBO differently and that certain factors that affect equity and debt prices may not affect USBO at all. USBO's
net asset value per unit may decline or increase more or less than equity and debt instruments during both rising and falling cash
markets. The General Partner does not expect that USBO's performance will be negatively correlated to general debt and equity
markets.
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PART II
INFORMATION NOT REQUIRED IN THE PROSPECTUS
Item  13.     Other
Expenses of Issuance and Distribution
Set forth below is an estimate (except
as indicated) of the amount of fees and expenses (other than underwriting commissions and discounts) payable by the registrant
in connection with the issuance and distribution of the units pursuant to the prospectus contained in this registration statement.
Amount
Amount SEC registration fee (actual)
$
139,500
NYSE Arca Listing Fee (actual)
$
5,000
FINRA filing fees (actual)
$
75,500
Blue Sky expenses
N/A
Auditor's fees and expenses (estimate)
$
2,500
Legal fees and expenses (estimate)
$
268,670
Printing expenses (estimate)
$
39,072
Miscellaneous expenses
N/A
Total
$
530,242
Item  14.     Indemnification
of Directors and Officers
Neither the General Partner nor any employee
or other agent of United States Brent Oil Fund, LP ("USBO") nor any officer, director, stockholder, partner, employee
or agent of the General Partner (a "Protected Person") shall be liable to any partner or USBO for any mistake of judgment
or for any action or inaction taken, nor for any losses due to any mistake of judgment or to any action or inaction or to the negligence,
dishonesty or bad faith of any officer, employee, broker or other agent of USBO or any officer, director, stockholder, partner,
employee or agent of such General Partner, provided that such officer, director, stockholder, employee, broker or agent of the
partner or officer, employee, partner or agent of such General Partner was selected, engaged or retained by such General Partner
with reasonable care, except with respect to any matter as to which such General Partner shall have been finally adjudicated in
any action, suit or other proceeding not to have acted in good faith in the reasonable belief that such Protected Person's
actions was in the best interests of USBO and except that no Protected person shall be relieved of any liability to which such
Protected Person would otherwise be subject by reason of willful misfeasance, gross negligence or reckless disregard of the duties
involved in the conduct of the Protected Person's office. A General Partner and its officers, directors, employees or partners
may consult with counsel and accountants (except for USBO's independent auditors) in respect of USBO affairs and be fully
protected and justified in any action or inaction which is taken in accordance with the advice or opinion of such counsel or accountants
(except for the Partnership's independent auditors), provided that they shall have been selected with reasonable care. Notwithstanding
any of the foregoing to the contrary, this provision hereof shall not be construed so as to relieve (or attempt to relieve) a General
Partner (or any employee or other agent thereof or any partner, employee or agent of such General Partner) of any liability to
the extent (but only to the extent) that such liability may not be waived, modified or limited under applicable law, but shall
be construed so as to effectuate these provisions hereof to the fullest extent permitted by law.
USBO shall, to the fullest extent permitted
by law, but only out of USBO assets, indemnify and hold harmless the General Partner and each officer, director, employee and agent
thereof (including persons who serve at USBO's request as directors, officers or trustees of another organization in which
USBO has an interest as a unitholder, creditor or otherwise) and their respective legal representatives and successors (hereinafter
referred to as a "Covered Person" against all liabilities and expenses, including but not limited to amounts paid in
satisfaction of judgments, in compromise or as fines and penalties, and counsel fees reasonably incurred by any Covered Person
in connection with the defense or disposition of any action, suit or other proceedings, whether civil or criminal, before any court
or administrative or legislative body, in which such Covered Person may be or may have been involved as a party or otherwise or
with which such person may be or may have been threatened, while in office or thereafter, by reason of an alleged act or omission
as a General Partner or officer thereof or by reason of its being or having been such a General Partner or officer, except with
respect to any matter as to which such Covered Person shall have been finally adjudicated in any such action, suit or other proceeding
not to have acted in good faith in the reasonable believe that such Covered Person's action was in the best interest of the
Fund, and except that no Covered Person shall be indemnified against any liability to USBO or Limited Partners to which such Covered
Person would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties
involved in the conduct of such Covered Person's office. Expenses, including counsel fees so incurred by any such Covered
Person, may be paid from time to time by USBO in advance of the final disposition of any such action, suit or proceeding on the
condition that the amounts so paid shall be repaid to USBO if it is ultimately determined that the indemnification of such expenses
is not authorized hereunder.
As to any matter disposed of by a compromise
payment by any such Covered Person, pursuant to a consent decree or otherwise, no such indemnification either for said payment
or for any other expenses shall be provided unless such compromise shall be approved as in the best interests of USBO, after notice
that it involved such indemnification by any disinterested person or persons to whom the questions may be referred by the General
Partner, provided that there has been obtained an opinion in writing of independent legal counsel to the effect that such Covered
Person appears to have acted in good faith in the reasonable belief that his or her action was in the best interests of USBO and
that such indemnification would not protect such persons against any liability to USBO or its Limited Partners to which such person
would otherwise by subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved
in the conduct of office. Approval by any disinterested person or persons shall not prevent the recovery from persons as indemnification
if such Covered Person is subsequently adjudicated by a court of competent jurisdiction not to have acted in good faith in the
reasonable belief that such Covered Person's action was in the best interests of USBO or to have been liable to USBO or its
Limited Partners by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in
the conduct of such Covered Person's office.
The right of indemnification hereby provided
shall not be exclusive of or affect any other rights to which any such Covered Person may be entitled. An "interested Covered
Person" is one against whom the action, suit or other proceeding on the same or similar grounds is then or has been pending
and a "disinterested person" is a person against whom none of such actions, suits or other proceedings or another action,
suit or other proceeding on the same or similar grounds is then or has been pending. Nothing contained herein shall affect any
rights to indemnification to which personnel of a General Partner, other than directors and officers, and other persons may be
entitled by contract or otherwise under law, nor the power of USBO to purchase and maintain liability insurance on behalf of any
such person.
Item 15.     Recent
Sales of Unregistered Securities
On September 2, 2009, the General
Partner made a $20 capital contribution to USBO. Additionally, Wainwright Holdings, Inc. ("Wainwright") contributed
$980 to USBO for its limited partnership interest. The General Partner is 100% owned by Wainwright which is controlled by the President
of the General Partner.
Item 16.     Exhibits
and Financial Statement Schedules
(a) Exhibits
Exhibit No.
Description
3.1
(1)
Certificate of Limited Partnership of the Registrant.
3.2
Second Amended and Restated Agreement of Limited Partnership (included as Appendix B to the prospectus).
3.4
(2)
Fifth Amended and Restated Limited Liability Company Agreement of the General Partner.
5.1
(6)
Opinion of Reed Smith LLP relating to the legality of the Units.
8.1
(6)
Opinion of Reed Smith LLP with respect to federal income tax consequences.
10.1
(3)
Form of Initial Authorized Purchaser Agreement.
10.2
(4)
Marketing Agent Agreement.
10.3
(3)
Custodian Agreement.
10.4
(3)
Administrative Agency Agreement.
14.1
(5)
Code of Business Conduct and Ethics.
23.1
(7)
Consent of Reed Smith LLP
23.2(a)
(7)
Consent of Spicer Jeffries LLP.
23.2(b)
(7)
Consent of Spicer Jeffries LLP.
99.1
(4)
Customer Agreement for Futures Contracts.
(1)
Incorporated by reference to Registrant's Registration Statement on Form S-1 (File No. 333-162015) filed on September
18, 2009.
(2)
Incorporated by reference to Registration Statement on Form S-3 (File No. 333-176873) filed by United States 12 Month Oil Fund,
LP on September 16, 2011.
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(3)
Incorporated by reference to Registrant's Registration Statement on Form S-1/A (File No. 333-162015) filed on April 2,
2010.
(4)
Incorporated by reference to Registrant's Registration Statement on Form S-1/A (File No. 333-162015) filed on April 16,
2010.
(5)
Incorporated by reference to Registrant's Annual Report on Form 10-K, filed on March 28, 2012.
(6)
Incorporated by reference to Post-Effective Amendment No. 2 to the Registration Statement on Form S-1 (File No. 333-162015)
filed on April 2, 2012.
(7)
To be filed by amendment.
(b) Financial Statement Schedules
The financial statement schedules are either
not applicable or the required information is included in the financial statements and footnotes related thereto.
Item 17.        Undertakings
(a) The undersigned registrant hereby undertakes:
(1) To file, during any period
in which offers or sales are being made, a post-effective amendment to this registration statement:
(i) To include any prospectus
required by section 10(a)(3) of the Securities Act of 1933;
(ii) To reflect in the prospectus
any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of
securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum
offering range may be reflected in the form of prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b)
if, in the aggregate, the changes in volume and price represent no more than 20 percent change in the maximum aggregate offering
price set forth in the "Calculation of Registration Fee" table in the effective registration statement.
(iii) To include any material
information with respect to the plan of distribution not previously disclosed in the registration statement or any material change
to such information in the registration statement.
(2) That, for the purpose of
determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.
(3) To remove from registration
by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
(4) That, for the purpose of
determining liability under the Securities Act of 1933 to any purchaser:
(i) If the registrant is subject
to Rule 430C (§230.430C of this chapter), each prospectus filed pursuant to Rule 424(b) as part of a registration statement
relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on
Rule 430A (§230.430A of this chapter), shall be deemed to be part of and included in the registration statement as of the
date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus
that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration
statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior
to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of
the registration statement or made in any such document immediately prior to such date of first use.
(5) That, for the purpose of
determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities:
The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration
statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or
sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser
and will be considered to offer or sell such securities to such purchaser:
(i) Any preliminary prospectus
or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424 (§230.424 of
this chapter);
(ii) Any free writing prospectus
relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
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(iii) The portion of any other
free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities
provided by or on behalf of the undersigned registrant; and
(iv) Any other communication
that is an offer in the offering made by the undersigned registrant to the purchaser.
(b) Insofar as indemnification for liabilities
arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant
to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim
for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
(c) The undersigned registrant hereby undertakes:
(1) To send to each limited
partner at least on an annual basis a detailed statement of any transactions with the General Partner or its affiliates, and of
fees, commissions, compensation and other benefits paid, or accrued to the General Partner or its affiliates for the fiscal year
completed, showing the amount paid or accrued to each recipient and the services performed.
(2) o provide to the limited
partners the financial statements required by Form 10-K for the first full fiscal year of operations of the partnership.
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SIGNATURES
Pursuant to the requirements of the Securities
Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing
on Form S-1 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized,
in the City of Oakland, State of California, on March 22, 2013.
UNITED STATES BRENT OIL FUND, L.P.
By: United States Commodity Funds LLC as General Partner
By:
/s/Nicholas D. Gerber
Nicholas D. Gerber
Chief Executive Officer of
United States Commodity Funds LLC
POWER OF ATTORNEY
The undersigned directors and officers
of the General Partner of United States Brent Oil Fund, L.P. hereby constitute and appoint Nicholas D. Gerber and Howard Mah and
each of them with full power to act without the other and with full power of substitution and resubstitution, our true and lawful
attorneys-in-fact with full power to execute in our name and behalf in the capacities indicated below this registration statement
on Form S-1 and any and all amendments thereto, including pre-effective and post-effective amendments to this registration statement
and to sign any and all additional registration statements relating to the same offering of securities as this registration statement
that are filed pursuant to Rule 462(b) of the Securities Act of 1933, and to file the same, with all exhibits thereto and other
documents in connection therewith, with the Securities and Exchange Commission and thereby ratify and confirm that all such attorneys-in-fact,
or any of them, or their substitutes shall lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities
Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.
The document may be executed by signatories hereto on any number of counterparts, all of which shall constitute one and the same
instrument.
Signature
Title
Date
/s/Nicholas D. Gerber
Nicholas D. Gerber
Management Director
Chief Executive Officer and President of United
States Commodity Funds LLC
March 22, 2013
/s/Howard Mah
Howard Mah
Management Director
Chief Financial Officer, Treasurer and Secretary
of United States Commodity Funds LLC
March 22, 2013
/s/Andrew Ngim
Andrew Ngim
Management Director of United States
Commodity Funds LLC
March 22, 2013
/s/Peter M. Robinson
Peter M. Robinson
Independent Director of United States
Commodity Funds LLC
March 22, 2013
/s/Malcolm R. Fobes II
I
Malcolm R. Fobes III
Independent Director of United States
Commodity Funds LLC
March 22, 2013
/s/Gordon L. Ellis
Gordon L. Ellis
Independent Director of United States
Commodity Funds LLC
March 22, 2013
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