INTERCONTINENTAL EXCHANGE SPOT MONTH EXEMPTION REQUEST FORM FOR SIGNIFICANT PRICE DISCOVERY CONTRACTS Information for Applicant a. The participant submitting this application shall be deemed to be the “applicant”. b. Spot month limits apply for ICE contracts deemed significant price discovery contracts by the Commodity Futures Trading Commission. Limits on these contracts will commence at the opening of trading on the third business day prior to, and including, the expiration day of the significant price discovery contract. Also, limits are effective on an intra-day basis. In other words, anytime during the last three days of trading a participant may not hold a position above the position limit for that contract without having an exemption. c. The position limits for significant price discovery contracts specified in Chapter 6 of ICE OTC Rulebook do not apply to bona fide hedging positions as defined in Section 1.3 (z)(1) or arbitrage, spread, risk management or independently controlled positions for which an exemption has been granted by the Exchange. d. To be eligible for an exemption to the position limit a participant must submit an application on its own behalf no later than 5 business days prior to exceeding the position limit. 2 INTERCONTINENTAL EXCHANGE REQUEST FOR EXEMPTION FROM SPOT MONTH POSITION LIMITS FOR SIGNIFICANT PRICE DISCOVERY CONTRACTS 1. Name of Applicant:________________________________________________________ 2. Address:________________________________________________________________ City:______________________________ State:_______________________________ Zip Code:__________________________ Country:____________________________ Telephone Number: (_____)______________________________________________ Fax Number: (_____)____________________________________________________ E-Mail:_________________________________________________________________ 3. Clearing Member(s) where accounts will be maintained (attach additional sheet if necessary): Name: ________________________________________________________________ Account Executive: ______________________________________________________ Account Number: ________________________________________________________ 4. Indicate exemption level requested (i.e., the maximum number of significant price discovery contracts, long and/or short, which will be established related to physical exposure and/or exposure from commodity swap transactions): Current Expiration Month Long SPDC: _________ Short SPDC: _____________ 5. a) Attach a statement documenting the hierarchy of the risk management/trading department identifying the risk manager/ head trader and each person in the department(s), and/or in the company, who has authority to trade significant price discovery contracts for the applicant (include his/her name, title, telephone number, and e- mail address). 3 b) The system of internal controls administered in the supervision of the applicant's risk management programs, i.e., describe the risk assessment policies and procedures in place for evaluation and supervision of risk management programs, including "stress testing" for extraordinary price volatility, and state frequency such supervision is conducted. 6. a) If the applicant is a public corporation, attach a copy of the most recent annual report. If the applicant is privately owned, supply the most current audited financial statement. b) If the applicant is privately owned, attach a list setting forth each principal owner by percent of ownership. 7. Nature of Applicant’s Business: Enclose a summary describing the nature of the applicant’s physical business. Be specific as to exposure associated with different segments of the business. A reference to these details in an annual report, if applicable, may be used to satisfy this requirement. In the following questions #8 and 9, be specific in stating the commodity and respective units in barrels, mmbtu, or short tons. The volumes stated should be the foundation for the applicant's request to obtain the exemption levels specified in question #4. Physical Exposure (if applicable) 8. a) The applicant currently has a spot month cash market exposure of ____________ (quantity) long and/or ____________ short ______________ of _____________________. (quantity) (unit) (commodity) Should the applicant's current request be predicated all or in part on its past year's cash market exposure, please complete section "b". b) During the previous fiscal year, the applicant maintained a spot month cash market position of as much as ____________ long and /or__________ short (quantity) (quantity) _________________ of ____________________. (unit) (commodity) 4 Swap Exposure (if applicable) 9. This question applies only to an applicant whose risk/exposure is related to swap transactions. Enclose a summary describing the nature of the applicant's swap exposure. This summary should include the gross long and/or short swap exposure currently on its books (and/or anticipated exposure, if applicable), and a broad characterization of the applicant's counterparties (i.e., producer, distributor, financial institution which includes which counterparties are predominant) . ____________________________________________________________________ This exemption shall not be effective unless approved in writing by the Exchange and expires pending renewal one year after the date of its approval. Approval of this application shall not in any way limit the authority of the Exchange to take emergency or discretionary non-emergency action. The Exchange, by order of the President, may condition or revoke an exemption based on the applicant's business needs, financial status and integrity, or on the liquidity, depth and volume of the market for which the exemption is sought. The undersigned certifies that this application is executed by an officer of the applicant, or by one of its duly authorized representatives, as of the date shown below. Date:___________________________ Applicant:________________________________ By:__________________________________________________________________________ (Signature) (Print Name):__________________________________________________________________ Position:______________________________________________________________________ Telephone Number: _____________________________________________________________ E-Mail:_______________________________________________________________________ Submit the completed application to the Compliance Department of the IntercontinentalExchange, Inc., 55 West Monroe, Suite 3430, Chicago, IL, 60604, Fax #: (312) 214-2001. Any questions regarding the use of this form should be directed to Edward Dasso, 5 Manager, Market Surveillance, at (312) 214-2046 or via email Ed.Dasso@theice.com.