**PROPOSED CONTRACT TERMS AND CONDITIONS FOR THE ALUMINUM FUTURES
CONTRACT**

**CHAPTER XX: ALUMINUM RULES**

**Rule XX.01 SCOPE**

> The provisions of these rules shall apply to all aluminum bought and
> sold for future delivery on the Exchange.

**Rule XX.02 DEFINITIONS**

> For the purposes of this chapter, the terms set forth below shall
> mean:
>
> \(A\) Sow shall mean Low-profile sow with an aspect ratio of not less
> than three (3). The aspect ratio is the smallest dimension in inches
> measured across the top surface of the sow divided by the height in
> inches.
>
> \(B\) Aluminum shall mean primary aluminum produced by the
> electrolytic reduction of alumina.
>
> \(C\) All times referred to in these rules shall be New York time
> unless otherwise stated.
>
> \(D\) All documents must be in English and all translations shall be
> in a form acceptable to the Exchange.

**Rule XX.03 ALUMINUM ADVISORY COMMITTEE**

> The Board of Directors shall appoint an Aluminum Advisory Committee
> which shall advise the Board with respect to the futures contracts
> traded under these rules.

**Rule XX.04 REFERENCE TO SELLER AND BUYER**

> The terms \"Seller\" and \"Buyer\" shall mean the short Clearing
> Member and the long Clearing Member respectively.

**Rule XX.05 CONTRACT UNIT**

> In fulfillment of every contract, the Seller shall deliver forty-four
> thousand (44,000) pounds (2% more or less) of aluminum.

**Rule XX.06 DELIVERABLE METAL SPECIFICATIONS**

\(A\) Quality Specifications

> The contract grade for the aluminum contract shall be primary aluminum
> meeting all of the requirements of the P1020A designation as specified
> in the Registration Record of Aluminum Association Designations and
> Chemical Composition Limits for Unalloyed Aluminum on March 29, 1982
> under the designation system approved by the American National
> Standards Institute (\"ANSI\") on September 22, 1982, or its latest
> revision, or primary aluminum of minimum 99.7% purity with a maximum
> iron (Fe) content of 0.20% and a maximum silicon (Si) content of
> 0.10%.

\(B\) Shapes

> Aluminum tendered against each contract shall conform to one of the
> following shapes.
>
> \(1\) Sows weighing from six hundred (600) to fifteen hundred
> seventy-five (1,575) pounds; or
>
> \(2\) T-bars weighing from six hundred (600) to fifteen hundred
> seventy-five (1,575) pounds.
>
> \(C\) Composition Requirements
>
> Said delivery shall be made up exclusively of the deliverable grade in
> one of the shapes specified in (B) above, and must derive from one
> approved smelter.
>
> \(D\) Origin And Brand Markings
>
> \(1\) All aluminum delivered shall be the product of an Exchange
> approved smelter current on the date such aluminum is issued a
> warehouse receipt by an Exchange Licensed Warehouse indicating that
> the metal may be delivered against the Aluminum Futures Contract.
>
> \(2\) The brand insignia and heat or cast number shall be clearly
> incised on each piece of aluminum delivered in fulfillment of an
> Exchange contract.

**Rule XX.07 DELIVERY MONTHS**

> Trading shall be conducted in contracts providing for delivery in such
> months as shall be determined by the Board of Directors.

**Rule XX.08 PRICES AND FLUCTUATIONS**

> \(A\) Prices shall be quoted in dollars and cents per pound. The
> minimum price fluctuation shall be five one hundredths of one cent
> (\$0.0005) per pound.
>
> \(B\) Trades executed in aluminum futures contracts in any delivery
> month shall not be executed during any one business day at prices
> varying more than \$0.20 per pound above or below the settlement price
> established at the close of the preceding business day, except as
> provided in paragraph (D) of this rule.
>
> \(C\) Two minutes after either of the two contract months nearest to
> the delivery month trade at the price limit, or after either of those
> delivery months has been bid (at the applicable upper limit) or
> offered (at the applicable lower limit) for a period of two minutes
> without trading, trading in aluminum futures and aluminum options
> shall cease for a period of fifteen (15) minutes; provided that
> trading shall not cease if the limit is reached during the final
> twenty (20) minutes of trading on that day; and provided further that
> if the limit is reached during the final one-half hour of trading,
> trading shall resume no later than ten (10) minutes before the close
> of trading.
>
> \(D\) Whenever trading resumes after a trading cessation in accordance
> with paragraph (C) of this rule, an expanded price limit shall become
> effective. Each time that trading resumes on a given day, the price
> limit in effect shall be expanded in increments of 100% of the initial
> price limit.
>
> \(E\) Except on the last day of trading of an expiring contract, price
> limits may be expanded to no more than \$0.60 in a single day.
>
> \(F\) There shall be no price limits or cessation of trading during
> the final thirty (30) minutes of trading on the last day of trading of
> an expiring contract month.

**Rule XX.09 TERMINATION OF TRADING**

> Trading in any current delivery month shall cease at the close of
> business on the third business day prior to the end of the delivery
> month.

**Rule XX.10 DELIVERY PROCEDURES**

> \(A\) LOCATION OF DELIVERY
>
> \(1\) Delivery shall be made at the Seller's choice of an Exchange
> Licensed Warehouse located in Illinois, Indiana, Kentucky, Ohio or
> Tennessee.
>
> \(2\) Except as otherwise provided in these Rules, all duties,
> entitlements, taxes, fees and other charges imposed prior to delivery
> on or in respect to the product shall be paid by the Seller. Delivery
> shall be made in accordance with applicable Federal, State and local
> laws.
>
> \(B\) DATE OF PRESENTATION
>
> \(1\) A Seller with an open short position must file a Notice of
> Intention to Deliver with the Exchange. The Date of Presentation shall
> be the day on which Notice(s) of Intention to Deliver are presented to
> the Clearing House by the Seller. The Notice of Intention to Deliver
> shall be in a computer readable form approved by the Exchange. Said
> notice shall indicate the approved brand, the receipt number of the
> warrant, the weight, the grade and the Licensed Warehouse facility in
> which the aluminum is stored.
>
> \(2\) Each Notice of Intention to Deliver shall be accompanied by a
> Notice Summary. The Notice Summary summarizes the total number of
> contracts which the Seller intends to deliver and shall be in a form
> approved by the Exchange.
>
> \(3\) A Notice of Intention to Deliver may be presented on any
> business day beginning on the next to last business day of the
> calendar month preceding the delivery month and any subsequent
> business day not later than three business days prior to the end of
> the delivery month one hour after the regular trading hours for the
> contract have ended. A Notice of Intention to Deliver may also be
> presented on the next to the last business day of the delivery month
> by 12:30 PM.
>
> \(4\) The Seller shall not present a Notice of Intention to Deliver
> unless it has in its possession the corresponding warehouse receipt
> (warrant), heat analysis and weight certificate.
>
> \(5\) The Notice of Intention to Deliver is not transferable.
>
> \(C\) NOTICE DAY
>
> \(1\) Notice Day shall be the day on which an Allocation Notice and
> Invoice are issued by the Clearing House to the Buyer and the Seller.
> This shall be the business day prior to the Delivery Day.
>
> \(2\) The Allocation Notice shall specify the parties matched for
> delivery and the number of contracts to be delivered. The Invoice
> shall specify the brand, the warrant number, the weight, the licensed
> warehouse in which the aluminum is stored, the name of the Seller, the
> name of the Buyer, and the price of the aluminum for each
> corresponding warrant.
>
> \(3\) The Allocation Notice and Invoice shall be issued by the
> Clearing House to the Buyer and the Seller on the morning of the
> business day following the Date of Presentation, except for the next
> to last business day of the delivery month. On the next to last
> business day of the delivery month, the Clearing House shall issue the
> Allocation Notice and Invoice to the Buyer and the Seller prior to the
> end of that day.
>
> \(4\) The Allocation Notice and Invoice are not transferable.
>
> \(D\) SETTLEMENT PRICE
>
> The settlement price at the close of business on the day the Notice of
> Intention to Deliver is given to the Clearing House shall be the basis
> for delivery. In the event the Notice of Intention to Deliver is given
> on the next to the last business day of the delivery month the
> settlement price shall be the settlement price at the close of
> business on the third to last business day (the previous day).
>
> \(E\) DELIVERY DAY
>
> \(1\) The day the Buyer receives the aluminum warrant shall be
> referred to as "Delivery Day." Delivery may take place on any business
> day beginning on the first business day of the delivery month or any
> subsequent business day of the delivery month, but not later than the
> last business day of the current delivery month.
>
> \(2\) The Buyer shall present payment to the Seller, at the Exchange,
> or another location mutually agreed upon by the parties, in the form
> of a certified check, or other form of payment mutually agreed upon by
> the parties in writing ("payment"). Payment shall be presented before
> 2:00 PM of Delivery Day.
>
> \(3\) Upon receipt of payment, the Seller shall give the Buyer: 1) a
> warrant, properly endorsed and dated; and 2) the corresponding
> Chemical Analysis and Weight Certificate issued pursuant to Rules
> XX.11 and XX.12.
>
> \(4\) Delivery made in fulfillment of contracts for future delivery
> shall be deemed a liquidation of the contract. The delivery of
> aluminum shall be considered complete when the documents in subsection
> (3) of this Rule have been delivered to the Buyer and payment has been
> received by the Seller. All aluminum must be delivered to the Buyer
> with handling and storage charges paid up to and including the day of
> delivery. The Buyer may require the Seller to furnish satisfactory
> proof of such prepayment. Any prepaid storage charges for a period
> extending beyond the Delivery Day, but not in excess of thirty days
> shall be refunded by the Buyer to the Seller prorata for the unexpired
> term.

**Rule XX.11 CHEMICAL ANALYSIS**

> \(A\) A chemical analysis of the aluminum brand designated on the
> warrant shall accompany each delivery against the contract. This
> analysis may be:
>
> \(1\) issued by the producer; or
>
> \(2\) issued by an Exchange Approved Assayer; or
>
> \(3\) a global analysis indicating the Silicon (Si) and Iron (Fe)
> content.
>
> \(B\) Each Chemical Analysis must certify that the metallurgical assay
> conforms to specifications as set forth in Rule XX.06 for each piece
> of aluminum represented by the warrant.
>
> \(C\) A Chemical Analysis for a cast from which more than one piece
> originated may be used if the cast number can clearly be referenced to
> that piece.
>
> \(D\) When an Exchange Licensed Assayer\'s Chemical Analysis is used,
> separate samples must be analyzed for each cast number contained in
> the lot and the assayer must mark each sow or T-bar with a code which
> associates the metal with its corresponding Chemical Analysis.

**Rule XX.12 WEIGHT CERTIFICATE**

> \(A\) A weight certificate, in a form approved by the Exchange,
> certifying the weight of the entire lot, shall accompany each delivery
> against the contract.
>
> \(B\) Weighing shall be done by a Licensed Weighmaster. The weight of
> each sow or T-bar as specified in the weight certificate shall be
> binding on all parties.

**Rule XX.13 WAREHOUSE RECEIPTS FOR ALUMINUM**

> After aluminum has been placed in an Exchange Licensed Warehouse,
> negotiable warehouse receipts (or warrants) stating the brand of the
> aluminum, the number of pieces and such other data as may be required
> by the Exchange, shall be issued to its owners upon request. Receipts
> shall be lettered and/or numbered consecutively by each warehouse and
> no two receipts shall bear the same sequence of letters and/or
> numbers. If letters are used, they must not exceed three characters,
> and if letters are used in combination with numbers, they must precede
> the numbers. The numbers must not exceed seven digits. The Chemical
> Analysis pursuant to Rule XX.11 and the Weight Certificate pursuant to
> Rule XX.12 shall be affixed to the warehouse receipt. Each receipt
> shall be for one contract.

**Rule XX.14 VALIDITY OF DOCUMENTS**

> The Exchange makes no representation respecting the authenticity,
> validity, or accuracy of any Delivery Notice or any document or
> instrument delivered pursuant to these rules.

**Rule XX.15 DELIVERY MARGINS**

> \(A\) The long Clearing Member shall require its customer to post with
> it margin equal to the full purchase price of all aluminum to be
> purchased under all contracts covered by the Invoice by the close of
> business on Notice Day.
>
> \(B\) The short Clearing Member shall obtain from its customer, margin
> in the amount fixed, from time to time, by the Board.
>
> \(C\) The long Clearing Member and short Clearing Member shall return
> such margin on the business day following notification from the
> respective customers that delivery and payment have been completed.

**Rule XX.16 EXCHANGE OF FUTURES FOR, OR IN CONNECTION WITH PRODUCT**

> An EFP must take place during the hours of futures trading for the
> aluminum futures contract. An EFP is also permitted in a futures
> contract at any time prior to 12:30 PM on the next to the last
> business day of the delivery month.

**Rule XX.17 FORCE MAJEURE, LATE PERFORMANCE AND FAILURE TO PERFORM**

> \(A\) DEFINITIONS. As used in this Rule XX.17 the following terms, as
> well as variations thereof, shall have the meanings described below.
>
> \(1\) \"Force Majeure\" shall mean any circumstance (including but not
> limited to a strike, lockout, national emergency, governmental action,
> or act of God) which is beyond the control of the Buyer or Seller, and
> which prevents the Buyer or Seller from making or taking delivery of
> primary aluminum or effecting payment when and as provided for in this
> Chapter and which by exercise of due diligence the affected Party
> could not have been reasonably expected to avoid and which by exercise
> of due diligence said Party is unable to overcome.
>
> \(2\) \"Late Performance\" shall mean the failure of a Buyer, as
> defined in Rule XX.04, to make payment on the Delivery Day as defined
> in Rule XX.10.
>
> \(3\) \"Failure to Perform\" shall mean the failure of the Seller to
> make or the Buyer to receive delivery of aluminum in accordance with
> the requirements set forth in these Rules.
>
> \(4\) \"Contract Value\" means the amount equal to the settlement
> price on the last day of trading in a futures contract times the
> number of contracts to be delivered.
>
> \(5\) \"Party\" means a Buyer or Seller.
>
> \(6\) \"Other party\" means the corresponding Buyer when a Seller has
> failed to perform and the corresponding Seller when a Buyer has failed
> to perform.
>
> \(B\) Responsibilities of Parties to the Delivery
>
> \(1\) The parties to a delivery shall make commercially reasonable
> efforts to perform their respective delivery obligations at all times
> until a party has failed to perform.
>
> \(2\) A party which has failed to perform its delivery obligations may
> no longer perform such obligations; provided, however, that a Buyer
> which has failed to make a payment shall make such payment.
>
> \(3\) When a Buyer, or the Buyer's customer, is late in performance,
> the Buyer shall be liable to the Seller for any damages awarded
> pursuant to Section (E), of this Rule and to the Exchange for any
> assessments made pursuant to Section (D) of this Rule.
>
> \(4\) When a Buyer or a Seller, or their respective customers, has
> failed to perform, the Buyer or the Seller, respectively, through
> which the delivery is effected shall be liable to the other party for
> any damages awarded pursuant to Section (E) of this Rule and to the
> Exchange for any assessments made pursuant to Section (D) of this
> Rule.
>
> \(C\) Delivery Committee
>
> \(1\) Force Majeure and Failure to Perform shall be determined by a
> Panel of the Delivery Committee as set forth below.
>
> \(2\) The Chairperson of the Delivery Committee shall appoint a panel,
> which shall consist of three (3) members of the Committee, to review a
> delivery:
>
> \(a\) when the Chairperson is advised by the President or any person
> designated by the President that it appears that a party to the
> delivery has failed or may fail to perform;
>
> \(b\) upon the written request of both the Buyer and Seller;
>
> \(c\) when the President or any person designated by the President
> requests such appointment; or
>
> \(d\) if either party to the delivery notifies the Exchange that
> circumstances constituting force majeure prevent the performance of
> delivery obligations.
>
> \(3\) The Chairperson of the Delivery Committee shall not appoint to
> any Panel any person who has a direct or indirect interest in the
> delivery in question. Each Panel Member shall disclose to the
> Chairperson any such interest which might preclude such Panel Member
> from rendering a fair and impartial determination. Any Panel so
> appointed shall retain jurisdiction over the delivery in question
> until the delivery has been completed or a party has been found to
> have failed to perform such delivery. Exchange Counsel shall serve as
> Advisor to the Panel.
>
> \(4\) The Panel shall meet within one business day, or as soon
> thereafter as is reasonably practicable**[,]{.underline}** of its
> notification of the circumstances set forth in Section (2). Unless
> good cause for delay exists, within one business day the Panel shall
> determine whether force majeure exists or whether a Buyer or a Seller
> has failed to perform its obligations as provided in the Rules, and
> the Panel shall cause its determination to be communicated to the
> parties to the delivery and the Compliance Department as expeditiously
> as possible.
>
> \(5\) Upon a finding of a failed performance, the Panel shall:
>
> \(a\) in the case of a failure to perform by a Seller: (i) notify the
> President of its determination, who shall instruct the Exchange\'s
> Clearing House to retain all delivery margins deposited by the Seller
> for the delivery until any amounts determined to be due to the
> Exchange or the Buyer pursuant to sections (D) or (E) of this Rule
> have been paid; and (ii) apprise the Buyer of the remedies provided
> pursuant to Section (E) of this Rule.
>
> \(b\) in the case of a failure to perform by a Buyer: (i) notify the
> President of its determination, who shall instruct the Exchange\'s
> Clearing House to issue a delivery margin call to the Buyer in an
> amount equal to the original margin then in effect for an Aluminum
> Futures Contract carried at the Clearing House on the last day of
> trading in such contract times the number of contracts to be delivered
> and to retain such delivery margin until any amounts determined to be
> due to the Exchange or the Seller pursuant to Sections (D) and (E) of
> this Rule have been paid; and (ii) apprise the Seller of the remedies
> provided pursuant to Section (E) of this Rule.
>
> \(6\) Upon a finding of force majeure, the Panel may take any one or
> combination of the following actions as it deems suitable:
>
> \(a\) modify the delivery terms; or
>
> \(b\) refer the matter to the Board of Directors for consideration of
> emergency action pursuant to Article 7 of the COMEX By-Laws.
>
> \(D\) EXCHANGE ACTION
>
> \(1\) Whenever a Buyer or a Seller is found by the Panel to be late in
> performance or to have failed to perform a delivery, the Exchange,
> represented by the Compliance Department, shall issue a Notice of
> Assessment.
>
> \(2\) The Buyer shall be assessed a penalty of US\$ 1,000.00 per
> contract to be paid to the Exchange for each day of Late Performance.
>
> \(3\) When a party has failed to perform, the Compliance Department
> shall issue a Notice of Assessment assessing a penalty of twenty
> percent of the contract value.
>
> \(4\) (a) A party may appeal a Notice of Assessment by filing a Notice
> of Appeal with the Hearing Registrar of the Exchange and by serving a
> copy of the same on the Exchange's Compliance Counsel, within two
> business days of receipt of Notice of Assessment. The party filing the
> appeal (\"Appellant\") shall file, within twenty (20) days after
> filing the Notice of Appeal, a Memorandum of Appeal setting forth the
> factual and legal basis for the appeal. The Memorandum of Appeal must
> be filed with the Hearing Registrar and serve a copy upon the
> Exchange\'s Compliance Counsel.
>
> \(b\) The Compliance Department may file with the Appellant and the
> Hearing Registrar an Answering Memorandum to the Memorandum of Appeal
> within ten (10) days of receipt of that memorandum.
>
> \(c\) Failure to file a Notice of Appeal or a Memorandum of Appeal
> within the time specified in subsection (D)(4)(a) of this Rule shall
> constitute a waiver of the right of appeal, and the penalties shall be
> paid within five days to the Exchange. Failure to pay such penalties
> in accordance with this Rule shall subject the party to the sanctions
> set forth in COMEX By-Law 106. In the event a party fails to appeal,
> or waives the opportunity to appeal a Notice of Assessment, the
> Assessment and findings of the Delivery Committee shall constitute a
> final disciplinary action of the Exchange.
>
> \(5\) Within ten (10) days after receipt of the Compliance
> Department\'s reply, the Appellant shall be entitled to examine all
> books, documents and other tangible evidence in possession or under
> the control of the Exchange that are to be relied on by the Compliance
> Department or are otherwise relevant to the matter.
>
> \(6\) In the event of an appeal by a party, the Chairperson of the
> Exchange, or its designee, shall appoint an Assessment Appeal Panel to
> hear and decide the appeal. The Panel shall be composed of three
> members of the Exchange, at least one of whom shall be a member of the
> Board of Directors. No member of the Panel may have a direct or
> indirect interest in the matter under the appeal. Each Panel Member
> shall disclose to the Chairperson any such interest which might
> preclude such Panel Member from rendering a fair an impartial
> determination. The formal Rules of Evidence shall not apply to such
> appeal, and the Panel shall be the sole Judge with respect to the
> evidence presented to it. Exchange outside counsel shall advise the
> Panel.
>
> \(7\) The procedures for the hearing of the appeal before the
> Assessment Appeal Panel shall be as follows:
>
> \(a\) At a date to be set by order of the Panel, and prior to such
> hearing, the Appellant and the Compliance Department shall furnish
> each other and the Panel with a list of witnesses expected to be
> called at the hearing, and a list of documents and copies thereof
> expected to be introduced at the hearing.
>
> \(b\) At such hearing the Appellant may appear personally and may be
> represented by counsel or other representative of his choice at the
> appeal.
>
> \(c\) The Compliance Department shall be entitled to offer evidence
> relating to the delivery and shall be entitled to call witnesses and
> introduce documents in support thereof. It shall be the burden of the
> Compliance Department to demonstrate, by the weight of the evidence,
> the appropriateness of the sanction set forth in the Notice of
> Assessment.
>
> \(d\) The Appellant shall be entitled to rebut the Compliance
> Department\'s evidence and shall be entitled to call witnesses and
> introduce documents in support thereof.
>
> \(e\) The Compliance Department and the Appellant shall be entitled to
> cross-examine any witness called by the opposing party at the hearing.
>
> \(f\) The Notice of Assessment, the Notice of Appeal, the Memorandum
> of Appeal, any Answering Memorandum, the stenographic transcript of
> the appeal, any documentary evidence or other material presented to
> and accepted by the Panel shall constitute the record of the hearing.
> The decision of the Panel shall be based upon the record of hearing.
>
> \(g\) The Panel shall have the power to impose a penalty against any
> person who is within the jurisdiction of the Exchange and whose
> actions impede the progress of a hearing.
>
> \(h\) The Panel shall issue a written decision in which it may affirm,
> reduce or waive the charges assessed against the Appellant and shall
> state the reasons therefor.
>
> \(i\) The decision of the Panel shall be a final decision of the
> Exchange, and shall constitute a final disciplinary action of the
> Exchange. The fine is payable on the effective date of the decision or
> as specified. The effective date shall be fifteen (15) days after a
> copy of the written decision has been delivered to the Appellant and
> to the Commission.
>
> \(8\) The Assessment Appeal Panel shall consider and make
> recommendations to the Board concerning acceptance or rejection of,
> any offer of settlement submitted by Appellant. In the case of an
> offer of settlement, acceptance by the Board shall constitute the
> final disciplinary action of the Exchange.

\(E\) ARBITRATION PROCEDURE

> \(1\) Any claim for damages arising between a Buyer and a Seller as a
> result of a delivery pursuant to this contract shall be settled by
> arbitration in accordance with these Rules.
>
> \(2\) Notice of Intent to Arbitrate must be submitted to the Secretary
> of the Exchange within three business days of the occurrence upon
> which the claim is based or the decision of the Delivery Committee
> with respect to a late or failed performance. Failure to submit a
> Notice of Intent to Arbitrate within the prescribed period will be
> deemed a waiver of a party\'s right to arbitrate such a delivery
> dispute under the Special or Regular Arbitration Rules.

3.  The Arbitration will be governed by Chapter 5 of the NYMEX Rules
    except that the Chairperson of the Exchange or his designee shall
    appoint an Arbitration Panel composed of three Members of the
    Exchange, at least one of whom shall be a Member of the Board of
    Directors.

**Rule XX.18 OFFICIAL LIST OF APPROVED SMELTERS**

> \(A\) The Exchange shall approve a list of smelters whose aluminum
> produced in their respective plants, may be delivered against the
> aluminum contract. Said list shall be official when approved by the
> Exchange and shall at all times be available to members for
> inspection.
>
> \(B\) Removal of a smelter from the official list shall not disqualify
> the aluminum produced by such smelter for delivery, if said aluminum
> has a valid warrant issued prior to the date the smelter is removed
> from the Official List of Approved Smelters.

Aluminum Supplement

No. 1

[PROPOSED LIST OF SMELTERS]{.underline}

[DELIVERABLE AGAINST THE ALUMINUM FUTURES CONTRACT\*]{.underline}

COMPUTER

[ALUMINUM PRODUCER]{.underline} [COUNTRY]{.underline} [CODE]{.underline}
[BRAND]{.underline}

Aluar Alumino Argentino SAIC Argentina ALUAR

Alcoa of Australia Ltd Australia ALCOA OF AUSTRALIA

Boyne Smelters Ltd Australia BSL

Boyne Smelters Ltd Australia BSL T-BARS

Capral Aluminium Limited Australia CAPRAL

Comalco Aluminium (Bell Bay) Ltd. Australia COMALCO

Portland Smelter Services Pty Ltd Australia PORTLAND

Tomago Aluminium Co Pty Ltd Australia TOMAGO

Aluminum Bahrain BSC Bahrain ALBA

Albras Aluminio Brasileiro SA Brazil ALBRAS

Alcan Aluminio do Brasil SA Brazil ALCAN BRAZIL

Alcoa Aluminio SA Brazil ALCOA BRASIL

Companhia Brasileira de Aluminio SA Brazil CBA

Alcoa Aluminio SA (ALUMAR) Brazil SAO LUIS

Billiton Metais SA (ALUMAR) Brazil SAO LUIS

Valesul Aluminio SA Brazil VALESUL

**\* Pending completion of application documentation.**

Aluminum Supplement

No. 1

Page 2

[PROPOSED LIST OF SMELTERS]{.underline}

[DELIVERABLE AGAINST THE ALUMINUM FUTURES CONTRACT\*]{.underline}

COMPUTER

[ALUMINUM PRODUCER]{.underline} [COUNTRY]{.underline} [CODE]{.underline}
[BRAND]{.underline}

Alucam Cameroon ALUCAM

Aluminerie de Becancour Inc. Canada ABI

Alcan Aluminium Limited Canada ALCAN

Aluminerie Alouette Inc. Canada ALOUETTE

Canadian Reynolds Metals Co Canada REYNOLDS

Shandong Aluminium Corp. China AL

Baishan Jiacheng Aluminium Co. Ltd. China CNM&M

Fushun Aluminium Plant China FL

Guizhou Aluminium Smelter China G\*L

Yellow River Aluminium Industry China LL

Co. Ltd

Lanzhou Lian Cheng Aluminium China LLL

Smelter

China Great Wall Aluminium China SML

Corporation

Qinghai Aluminium Smelter China QHAS

Qing Tong Xia Aluminium Smelter China QTX

Dubai Aluminium Company Ltd Dubai DUBAL

\* **Pending completion of application documentation.**

Aluminum Supplement

No. 1

Page 3

[PROPOSED LIST OF SMELTERS]{.underline}

[DELIVERABLE AGAINST THE ALUMINUM FUTURES CONTRACT\*]{.underline}

COMPUTER

[ALUMINUM PRODUCER]{.underline} [COUNTRY]{.underline} [CODE]{.underline}
[BRAND]{.underline}

The Aluminium Company of Egypt Egypt EGYPTALUM

Pechiney SA France PECHINEY

Aluminium Essen GmbH Germany AE

Hamburger Aluminium-Werk GmbH Germany HAW

VAW Aluminium AG Germany VAW

Kaiser Aluminium & Chemical Corp. Ghana VA

Kaiser Aluminium & Chemical Corp. Ghana VALCO

Aluminium de Grece SA Greece ADG

Hungalu Aluminium Industrial Ltd. Hungary INOTA/HUNGALU

Icelandic Aluminium Co Ltd Iceland ISAL

Bahrat Aluminium Co India BALCO

Indian Aluminium Co Ltd India INDAL

Hindalco Industries Ltd India HA

Hindalco Industries Ltd India HINDALCO

National Aluminium Co Ltd India NALCO

**\* Pending completion of application documentation.**

Aluminum Supplement

No. 1

Page 4

[PROPOSED LIST OF SMELTERS]{.underline}

[DELIVERABLE AGAINST THE ALUMINUM FUTURES CONTRACT\*]{.underline}

COMPUTER

[ALUMINUM PRODUCER]{.underline} [COUNTRY]{.underline} [CODE]{.underline}
[BRAND]{.underline}

Pt. Indonesia Asahan Aluminium Indonesia INAL

Aluminium Delfzijl BV Netherlands DELFZIJL

Pechiney Nederland NV Netherlands PNL

New Zealand Aluminum Smelters Ltd New Zealand NZAS

Hydro Aluminium AS(Ardal) Norway HYDRO

Hydro Aluminium AS (Karmoy) Norway HYDRO

Hydro Aluminium AS(Hoyanger) Norway HYDRO

Hydro Aluminium AS(Sunndalsora) Norway HYDRO

Soer-Norge Aluminium AS Norway SOERAL

Huta Aluminium "Konin" SA Poland WR 36

Alro SA Slatina Romania IAS

Bogoslovsky Aluminium Smelter (BAS) Russia BAS

Sayansky Aluminium Plant Russia CAA3-P

Volgogradsky Aluminiy Russia CCCP

Nadvoitsky Aluminium Smelter Russia HA3

**\* Pending completion of application documentation.**

Aluminum Supplement

No. 1

Page 5

[PROPOSED LIST OF SMELTERS]{.underline}

[DELIVERABLE AGAINST THE ALUMINUM FUTURES CONTRACT\*]{.underline}

COMPUTER

[ALUMINUM PRODUCER]{.underline} [COUNTRY]{.underline} [CODE]{.underline}
[BRAND]{.underline}

Novokuznetski Aluminium Plant Russia HKA3

Bratsk Aluminium Plant Russia ID

Kandalaksha Aluminium Plant Russia KAZ

Krasnoyarsk Aluminium Plant Russia KPA3

TALUM, d.o.o., Kidricevo Slovenia TALUM

Alusaf Limited South Africa ALUSAF BAYSIDE

Alusaf Limited South Africa ALUSAF HILLSIDE

Aluminio Espanol SA Spain ALUMINIO ESPANOL

Inespal Metal S.A. Spain INESPAL AV

Inespal Metal S.A. Spain INESPAL LC

Suriname Aluminium L.L.C. Suriname SURALCOA

Etibank Turkey ETIAL 7

Anglesey Aluminium Metal Ltd United Kingdom AAM

Alcan Aluminium (UK) Ltd United Kingdom ALCAN

Alcan Aluminium (UK) Ltd United Kingdom BACO

**\* Pending completion of application documentation.**

Aluminum Supplement

No. 1

Page 6

[PROPOSED LIST OF SMELTERS]{.underline}

[DELIVERABLE AGAINST THE ALUMINUM FUTURES CONTRACT\*]{.underline}

COMPUTER

[ALUMINUM PRODUCER]{.underline} [COUNTRY]{.underline} [CODE]{.underline}
[BRAND]{.underline}

Aluminum Company of America USA ALCOA

Columbia Falls Aluminum Co USA CFAC

Eastalco Aluminum Co USA EASTALCO

Intalco Aluminum Co USA INTALCO

Goldendale Aluminum Corp. USA GAC

Kaiser Aluminum & Chemical Corp. USA KAISER

Alumax Inc. USA LAURALCO

Alumax of South Carolina USA MT HOLLY

Southwire Co. USA NSA

Noranda Aluminum Inc. USA NORANDA ALUMINUM INC

Ormet Corp. USA ORMET

Northwest Aluminum Corp. USA NWA

Reynolds Metals Co USA REYNOLDS

Vanalco Inc. USA VANALCO

Alcan Aluminum Co USA ALCAN

**\*** **Pending completion of application documentation.**

Aluminum Supplement

No. 1

Page 7

[PROPOSED LIST OF SMELTERS]{.underline}

[DELIVERABLE AGAINST THE ALUMINUM FUTURES CONTRACT\*]{.underline}

COMPUTER

[ALUMINUM PRODUCER]{.underline} [COUNTRY]{.underline} [CODE]{.underline}
[BRAND]{.underline}

CVG Aluminil del Caroni SA Venezuela ALCASA

Industria Venezolana de Aluminio SA Venezuela VENALUM

Kombinat Aluminijuma Prodgorica Yugoslavia KAP

**\* Pending completion of application documentation.**

Aluminum Supplement

No. 2

[PROPOSED LIST OF LICENSED WAREHOUSES AND WEIGHMASTERS\*]{.underline}

[FACILITIES]{.underline} [COMPUTER CODE]{.underline}

[INDIANA]{.underline}

Morton Avenue Warehouse 119 N. Morton Avenue

119 N. Morton Avenue Evansville, Indiana

Evansville, Indiana 47711

Phone: 812-464-8244

Facsimile: 812-465-0372

[KENTUCKY]{.underline}

Owensboro Riverport Authority 2300 Harbor Road

P.O. Box 21955 Owensboro, Kentucky

Owensboro, Kentucky 42304

Phone: 502-926-4238

Facsimile: 502-683-3711

R.J. Corman Distribution Center 444 N. Hardison Road

P.O. Box 444 South Union, Kentucky

444 N. Hardison Road

South Union, Kentucky 42283

Phone: 502-542-7300

Facsimile: 502-542-7363

[TENNESSEE]{.underline}

R.J. Corman Distribution Center 931 Alfred Thun Road

931 Alfred Thun Road Clarksville, Tennessee

Clarksville, Tennessee

Phone: 931-648-1718

Facsimile: 931-553-5008

\***Pending completion of application documentation**

Aluminum Supplement

No. 3

[ADDITIONAL LICENSED WEIGHMASTERS FOR ALUMINUM \*\*]{.underline}

ALMETCO, INC.

P.O. Box 85

Nocona, Texas 76255

(Orders: (940) 825-6975)

ROBERT W. HUNT COMPANY

10301 NW Freeway

Houston, TX 77092

(Orders:(713) 290-8052)

INSPECTION SERVICES INC.

5050 Timbercreek

Houston, TX 77017

( Orders: (713) 944-2000)

INSPECTORATE GRIFFITH U.S.A., INC.

180 South Main Street

Ambler, PA 19002

(Orders:(713) 944-2000)

INTERNATIONAL TESTING LABORATORIES, INC.

578-582 Market Street

Newark, N.J. 07105

(Orders: (973) 589-4772)

LAUCKS TESTING LABORATORIES, INC.

940 South Harney Street

Seattle, Wash. 98101

(Orders: (206) 767-5060)

LEDOUX & COMPANY

359 Alfred Avenue

Teaneck, N.J. 07666

(Orders: (201) 837-7160)

Aluminum Supplement

No.3

Page 2

[ADDITIONAL LICENSED WEIGHMASTERS FOR ALUMINUM \*\*]{.underline}

R. MARKEY & SONS, INC.

5 Hanover Square, 12th Floor

New York, N.Y. 10004

(Orders: (212) 482-8600)

SGS Commercial Testing & Engineering Co.

Suite 210-B

1919 S. Highland Avenue

Lombard, Illinois 60148

( Orders: (630) 953-9300 )

ALEX STEWART (ASSAYERS) INC.

472 Westfield Avenue

Clark, New Jersey 07066

(Orders: (732) 827-0656)

U.S. COMMODITY SERVICES

P.O. Box 1651

Tacoma, Wash. 98401

(Orders: (253) 272-1402)

J.W. WISNER INC**.**

7670 East Broadway

Suite 105

Tucson, Arizona 85710

(Orders: (520) 296-3666)

ERSA GLOBAL USA, Inc.

1250 NE Loop 410, Suite 825

San Antonio, TX 78209

(Orders: (210) 826-3302)

**\*\* These Licensed Weighmasters have been approved by the Exchange
for the Copper Futures Contract.**

Aluminum Supplement

No. 4

[APPROVED ASSAYERS FOR ALUMINUM \*\*]{.underline}

INTERNATIONAL TESTING LABORATORIES, INC.

578-582 Market Street

Newark, N.J. 07105

(Orders: (973) 589-4772)

LEDOUX & COMPANY

359 Alfred Avenue

Teaneck, N.J. 07666

(Orders: (201) 837-7160)

ALEX STEWART (ASSAYERS) INC.

472 Westfield Avenue

Clark, New Jersey 07066

(Orders: (732) 827-0656)

A H KNIGHT

Eccleston Grange

Prescot Road

St Helens

Merseyside

WA10 3BQ

England

(Orders: (01744) 733757)

US LOCATION:

A H Knight North America, Ltd.

PO Box 3504

130 Tradd Street

Spartanburg, SC 29304-3504

(Orders: (864) 595-1627)

**\*\* The Approved Assayers have been approved by the Exchange for the
Copper Futures Contract.**

**Rule 4.02 HOURS FOR TRADING**

a.  [Opening and Closing]{.underline}. The hours for trading futures
    contracts and futures options on each day on which the Exchange is
    open for business shall be as follows:

Futures Contract

[or Option]{.underline} [Opening]{.underline} [Closing]{.underline}

Gold 8:20 AM 2:30 PM

Silver 8:25 AM 2:25 PM

Copper 8:10 AM 2:00 PM

**[Aluminum 7:50 AM 2:10 PM]{.underline}**

Gold Futures Options 8:20 AM 2:30 PM

Silver Futures Options 8:25 AM 2:25 PM

Copper Futures Options 8:10 AM 2:00 PM

**[Aluminum Futures Options 7:50 AM 2:10 PM]{.underline}**

Eurotop 100 Stock 5:00 AM 11:00 AM

Index futures and

futures options

**Rule 4.02(c) POST-SETTLEMENT SESSION**

Immediately following the establishment of the settlement price in all
metal futures or options contracts, trading shall resume for a period of
three minutes, subject to the following conditions:

> \(1\) A floor member may execute trades for his own account and for
> the account of another member present on the trading floor without
> further limitation of section(c)(2) of this rule;
>
> \(2\) During the post-settlement session, a floor member shall bid or
> offer all non-discretionary orders received and time-stamped on order
> tickets on the trading floor prior to the close of the market which,
> (A) with respect to futures options, were executable at the settlement
> price and (B), with respect to futures, were executable during the
> price range established by section (c)(4), which have not been
> expressly withdrawn;
>
> \(3\) The trade price of all options transactions executed during the
> post-settlement session shall be the settlement price established for
> the futures option traded;
>
> \(4\) Futures trades occurring during the post-settlement session
> shall be executed openly and competitively at a price within the
> following range of minimum price fluctuations ("ticks") above and
> below the settlement price of the applicable futures contract;
>
> \(A\) Grade 1 Copper Futures \-\-\-\-\-\-- 3 ticks
>
> \(B\) Gold Futures \-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-- 4 ticks

C.  Silver Futures \-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-- 3 ticks

**[(D) Aluminum Futures\-\-\-\-\-\-\-\-\-\-\-\-\-- 3
ticks]{.underline}**

> In the event the range of prices during the closing range is narrower
> than the ranges set forth above, then the range of prices for trades
> executed during the post-settlement session shall be limited to the
> range of prices during the closing range. Furthermore, if the range of
> ticks set forth above exceeds the high or low price established during
> the closing range, then the range of prices for trades executed during
> the post-settlement session shall be limited by either the high or low
> price of the closing range which was exceeded;
>
> In the event the settlement price as determined in accordance with
> COMEX Rules 4.91, 4.94 and 4.94A is outside the range of prices
> established during the closing period, all trades occurring during the
> post-settlement session shall be executed within the range of minimum
> price fluctuations above and below the settlement price of the
> applicable futures contract.
>
> \(5\) Prices for trades executed during the Post Settlement Session
> shall not be reported on public ticker services as current market
> prices and trades executed during the Post Settlement Session shall
> not be considered in determining any settlement price; and
>
> \(6\) Floor Members executing trades during the Post Settlement
> Session shall mark a line across their trading cards prior to the
> entry of a Post Settlement Session trade.

**Rule 4.38A STRIP TRANSACTIONS**

> \(A\) Definition: A strip transaction shall consist of either the
> simultaneous purchase or sale of an equal number of contracts in each
> of two or more consecutive Grade 1 copper or
> **[aluminum]{.underline}** futures contract months for a single
> account that is quoted and traded at a single price.
>
> \(B\) Floor Members executing strip transactions shall properly record
> them in writing so as to permit the identification of the strip
> transactions and the parties thereto. All strip transactions for
> copper futures contracts and **[aluminum futures
> contracts]{.underline}** on the Exchange trading floor must be made by
> open outcry in the copper trading ring and in the **[aluminum trading
> ring]{.underline}**, respectively. All strip transactions must be in
> line with prevailing contract prices for strip transactions and the
> prices of the copper futures contracts comprising the strip
> transaction and the prices for **[aluminum futures
> contracts]{.underline}** comprising the strip transaction shall be
> within the permissible price limits of the contract months traded.
>
> \(C\) The floor members on both sides of each strip transaction must
> report on their respective trading cards all information required
> pursuant to COMEX Division Rule 4.80 (b), including the price of the
> strip transaction, to the Exchange. The Exchange shall then assign the
> prices for each of the copper futures contracts or **[aluminum futures
> contracts]{.underline}** as the case may be comprising the strip
> transaction pursuant to a methodology as established by the Exchange.
>
> \(D\) Except as provided in NYMEX Rule 6.08C(C), strip transactions
> shall not set off stops in any copper futures contract or **[aluminum
> futures contract]{.underline}**, nor shall strip transactions be
> deemed to have violated any bids or offers for outright transactions
> in any copper futures contract or **[aluminum futures
> contract]{.underline}** on the trading floor.

**Rule 4.42 MATCHED ORDERS**

\[Sections (a) through (g) remain unchanged.\]

\(h\) Transactions Eligible for Board Approval For Matched Order
Procedures. The Board may, by resolution, authorize the execution of
transactions in any or all of the futures contracts and delivery months
specified below pursuant to the matched order procedures set forth in
the is Rule 4.42.

Futures

[Contract]{.underline} [Delivery Month]{.underline}

Gold Two Most Actively Traded

Silver Two Most Actively Traded

Copper Spot and Next Four Consecutive Contract Months

**[Aluminum Spot and Next Four Consecutive Contract
Months]{.underline}**

RESOLUTION

.10 Board-Designated Transactions. The following transactions have been
approved by the Board for execution as matched orders under Rule 4.42.

Futures

[Contract]{.underline} [Delivery Month]{.underline}

Copper Spot and Next Four Consecutive Contract Months

**[Aluminum Spot and Next Four Consecutive Contract
Months]{.underline}**

**Rule 4.46 REPORTING REQUIREMENTS**

a.  [General]{.underline}. For the purposes of position computation and
    reporting, if any person holds or has a financial interest of 10% or
    more in or controls the trading (directly or indirectly, by power of
    attorney or otherwise) in multiple accounts, the positions carried
    in all such accounts shall be aggregated and considered as a single
    position. Similarly, the positions carried in the accounts of two or
    more persons acting pursuant to an express or implied agreement or
    understanding as if the accounts were held by a single person shall
    be aggregated and considered as a single position. The accounts in
    which all such positions are carried are referred to herein as
    "affiliated accounts."

> \(b\) [Reporting Levels.]{.underline} All positions which equal or
> exceed the levels prescribed below ("reportable positions") shall be
> reported to the Exchange:

\# of contracts long or short in any

[Future]{.underline} [one contract month]{.underline}

Gold 200

Silver 150

Copper 100

**[Aluminum 25]{.underline}**

Eurotop 100 Stock Index 25

\[The remainder of the rule remains unchanged.\]

**Rule 4.47 POSITION LIMITS**

a.  [Aggregation.]{.underline} The position limits established by this
    rule and the position accountability levels prescribed pursuant to
    Rule 4.48 ("Position Accountability") shall apply to all positions
    held by any person, including positions in any account(s) in which
    such person has a financial interest of 10% or more and in any
    account(s) for which such person controls trading (directly or
    indirectly, by power of attorney or otherwise); and, in the case of
    positions held by two or more persons acting pursuant to an express
    or implied agreement or understanding, the same as if all of the
    positions were held by a single person. For purposes of this rule,
    the term "person" shall mean any individual or entity.

```{=html}
<!-- -->
```
b.  [Applicable Limits.]{.underline} The maximum number of futures
    contracts, options on such futures contracts, or any combination
    thereof (collectively referred to as a "position") which any person
    may own or control is as follows:

Spot Month Net Futures Equivalent

[Commodity]{.underline} [Limit\*]{.underline} [Limit]{.underline}

Gold 3000 Subject to Position Accountability

Silver 1500 Subject to Position Accountability

**[Aluminum 350 Subject to Position Accountability]{.underline}**

Copper 2500 Subject to Position Accountability

Eurotop 100

Stock Index None 10,000

\*Effective as of the close of business on the second last business day
of the calendar month preceding the delivery month.

\[The remainder of the rule remains unchanged.\]

**Rule 4.48 POSITION ACCOUNTABILITY**

The owner or controller of a net futures equivalent position in gold,
silver, \[or\] copper or **[aluminum]{.underline}** which reaches or
exceeds 6000 contracts shall:

1.  promptly supply to the Exchange such information as the Exchange may
    request pertaining to the nature and size of the position, the
    trading strategy employed with respect to the position, and the
    position owner's or controller's hedging requirements, provided,
    however, that if the position owner or controller fails to supply
    such information as and when requested, the President or his
    designee may request, and the Board or, upon delegation, the Control
    Committee may order the reduction of such position.

```{=html}
<!-- -->
```
2.  agree, upon request by the Board or the Control Committee, not to
    increase the position owned or controlled as of the time the request
    was received; and

\(3\) agree to comply with any prospective limit prescribed by the Board
or the Control Committee which exceeds the size of the position owned or
controlled.

Proposed New Rule

**[4.94A SETTLEMENT PRICE PROCEDURES FOR ALUMINUM
CONTRACTS]{.underline}**

**[(A) For aluminum futures contracts, the settlement price for the
current delivery month and the delivery month with the greatest reported
open interest on the official COMEX daily open interest report that is
not the current delivery month shall be the weighted average price
(rounded to the nearest minimum fluctuation) of all outright
transactions in that delivery month which occur in the closing range. If
no outright transactions occur in the closing range of either the
current delivery month and the delivery month with the greatest reported
open interest on the official COMEX daily open interest report that is
not the current delivery month, the settlement price for the applicable
month shall be the last trade price, unless during the closing period a
bid higher or offer lower than the last trade price is made. In such
event, such higher bid or lower offer shall be the settlement
price.]{.underline}**

**[(B) In all other delivery months for such futures contracts, the
settlement price shall be determined based upon spread relationships
between and among contract months, which relationships shall be
determined in the judgment of the Settlement Price Committee with: (a)
greater weight given to spreads executed late in the trading day in
large volumes, and (b) lesser weight given to (i) spreads traded in
lesser volumes, (ii) spread bid and offers actively represented late in
the trading day, and (iii) spread transactions, bids and offers from
earlier in the trading day. Notwithstanding the foregoing, no settlement
price shall be established that would be lower than the best outright
bid, or higher than the best outright offer, that: (a) was at least for
20 contracts, and (b) had been posted with the Exchange and had remained
available for execution and unfilled for the final 30 minutes of trading
of that trading day.]{.underline}**

**[(C) If any settlement price, determined pursuant to Paragraphs (A) or
(B), is inconsistent with transactions that occurred during the closing
range for other delivery months of the same futures contract or with
other market information known to the Committee, the Committee may
establish a settlement price at a level consistent with such other
transactions or market information. In such event, the Committee shall
prepare a written record of the basis for any settlement price so
established.]{.underline}**

Proposed Amendments

[Underlining]{.underline} indicates addition: Bracketing \[\] indicates
deletions

**NYMEX CHAPTER 7**

**METALS RULES**

Rule 7.00. TERMS AND CONDITIONS PRESCRIBED BY BOARD

\[Rule 7.00 deleted effective March 14, 1996.\]

Rule 7.01. APPLICATION APPROVAL

\[Rule 7.01 deleted effective March 14, 1996.\]

Rule 7.02. APPROVED STORES

\[Rule 7.02 deleted effective March 14, 1996.\]

Rule 7.03. REVOCATION OF DESIGNATION AS APPROVED WAREHOUSE OR STORE

\[Rule 7.03 deleted effective March 14, 1996 and redesignated as Rule
7.14.\]

Rule 7.04. ASSAYERS

The Exchange shall appoint three assayers, who shall be designated as
advisory assayers for metals. Said advisory assayers shall assist the
Exchange in determining the maintenance of the integrity of the brands
of Metals tenderable against Exchange contracts and the metallurgical
assay of said brands. In the event that the metallurgical assay of any
of the tenderable brands shall be questioned, the Exchange shall refer
the matter to said advisory assayers for a report to assist said Board
in its determination.

The Exchange shall appoint one or more other assayers whose duties shall
be fixed by the By-Laws and Rules of the Exchange. Such assayers shall
be designated as official assayers for the Exchange.

\[Rule 7.04 added effective March 14, 1996.\]

Rule 7.05. LICENSED WAREHOUSE AND VAULTS

\(a\) Warehouses and vaults may be licensed and/or designated for the
storage of metals upon the recommendation of the Metals Advisory
Committee and with the approval of the Board. **\[References to the
Committee on Warehousing and/or the Committee on Warehousing for Metals
in these rules shall mean the Metals Advisory Committee.\]**

\(b\) No warehouse or vault shall be licensed and/or designated for the
storage of metal unless it has in force and effect all-risk insurance
against loss of the metal in such amount, issued by such insurance
companies, and upon such terms and conditions as are satisfactory to the
Exchange. All policies evidencing such insurance shall provide for
delivery to the Exchange of at least ninety (90) days prior written
notice of any change in the terms of or premiums for the policy and of
any proposed cancellation of the policy. The continued maintenance of
such insurance shall be a condition to retention of the license and/or
designation of each warehouse and vault; provided, however, that any
vault licensed and/or designated for the storage of gold or silver shall
not be required to procure all-risk insurance unless the depository's
net capital is less than \$250,000,000.

\(c\) Warehouses and vaults licensed and/or designated shall give such
bonds to the Exchange as may be required and shall pay to the Exchange
such annual fee as the Exchange may fix in its discretion.

\(d\) A license granted to or a designation of a warehouse and vault may
be canceled at any time by a written notice of intention to cancel
served upon said warehouse and vault at least thirty days before the
date therein specified as the date of cancellation, whereupon the
pro-rata amount of the fee paid, if any, shall be refunded. Notice of
such cancellation shall be **\[posted upon the bulletin board and\]**
mailed to members of the Exchange.

\(e\) Each licensed or designated warehouse or vault shall on demand
furnish to the Exchange daily a list of all metals tenderable against
Exchange contracts delivered to and removed from the warehouse.

\(f\) Each licensed or designated warehouse and vault shall cause an
independent auditor to conduct an annual inventory of all stocks held
and prepare a report certifying that the records of the warehouse or
vault accurately reflect the stock held by the depository. Each report
shall be filed with the Exchange within thirty days of the date
reflected by the inventory.

\(g\) Licensed warehouses and vaults shall make such reports, keep such
records, and permit such visitation as the Commission may prescribe.
Such books and records shall be kept for a period of three years from
the date thereof or for a longer period if the Commission shall so
direct, and such books, records and warehouses shall be open at all
times to inspection by any representative of the Commission or the
United States Department of Justice.

RESOLUTION

.10 Financial Statements of Licensed Warehouses. Copies of audited
statements should be filed with the Exchange as they become available.
If, at any time, there is a 20% reduction in the net worth of the
warehouse subsequent to the filing of an audited statement, prompt
advice should be given to the Exchange.

\[Ruled 7.05 added effective March 14, 1996.\]

Rule 7.06. RULES FOR WAREHOUSES LICENSED FOR STORAGE OF METALS

\(a\) Upon the arrival at a warehouse of metals bearing any brand on the
official Exchange list of approved brands deliverable against Exchange
contract or Copper Cathodes of an Approved Refiner (herein referred to
as "deliverable metal") they shall be stored within the protection of a
completely enclosed building**[, or otherwise as approved by the
Exchange]{.underline}**. The metals shall remain in such storage
throughout their custody by the warehouseman. Any deliverable metal
which is not presently stored, as herein provided, must be immediately
removed to storage space as herein prescribed and remain therein until
removed from storage.

[(b) **Upon arrival to the warehouse of Aluminum T-bar or Low-profile
sow produced by an Approved Smelter (herein referred to as "deliverable
metal") it shall be stored in an Exchange approved, well secured area by
the warehouseman.** **The metal shall remain in such storage throughout
its custody by the warehouseman. Any deliverable metal which is not
presently stored, as herein provided, must be immediately removed to
storage space as herein prescribed and remain therein until removed from
storage. **]{.underline}

**[(c)]{.underline}\[(b)\]** While deliverable metal is in U.S. Customs
custody, a warehouse receipt may be issued for such quantity as may be
desired by the owner, but no warehouse receipt for such metal shall
contain any representation that the metal is free of U.S. Customs
custody or has been qualified for delivery against an Exchange contract.

**[(d)]{.underline}\[(c)\]** When deliverable metal is removed from U.S.
Customs custody, if owner desires to have it qualified for delivery
against an Exchange contract, it must be weighed up into Exchange lots
(contract units) by an Exchange licensed weighmaster in accordance with
Exchange requirements, and the warehouse receipt covering such units
must be clearly stamped or typed and initialed by the warehouseman with
the following legend:

"THE MERCHANDISE COVERED BY THIS RECEIPT HAS BEEN CLEARED THROUGH U.S.
CUSTOMS AND IS ON A DELIVERABLE (FREE) DOMESTIC STATUS."

The contract units for the respective metals are as follows:

**[Aluminum - 44,000 lbs. (2% more or less)]{.underline}**

Copper - 25,000 lbs. (2% more or less)

**[(e)]{.underline}\[(d)\]** When deliverable metal is stored in
Exchange approved licensed warehouses outside of the U.S., it must be
kept in a bonded warehouse.

**[(f)]{.underline}\[(e)\]** All warehouse receipts issued for Exchange
contract units must conform to the requirements of the Exchange By-Laws
and Rules for the respective metals and each contract unit must be
labeled with the identifying marks referred to in the warehouse receipt.

**[(g)]{.underline}\[(f)\]** The licensed warehouse must afford to any
representative of the Exchange access to the warehouse premises during
normal business hours and the unrestricted right to examine any and all
warehouse records covering deliverable metal.

\[Rule 7.06 added effective March 14, 1996.\]

Rule 7.07. WHAT CONSTITUTES ONE WAREHOUSE

For purposes of delivery of metals upon contract by warehouse or vault
receipts, one warehouse or vault shall be understood to mean a single
warehouse or vault; or, a number of contiguous warehouses or vaults
comprising one system of warehouses or vaults under one name or
management; or warehouses or vaults or systems of warehouses or vaults
that are in juxtaposition to each other, though bearing different names,
when such warehouses or vaults are adjoining and contiguous to each
other and are all managed or operated by one firm or warehouseman.

\[Rule 7.07 added effective March 14, 1996.\]

Rule 7.08. ENFORCEMENT OF WAREHOUSE RECEIPT WITHOUT RECOURSE

The endorsement of a warehouse or vault receipt "without recourse" is
improper, and the delivery of such a receipt so endorsed shall not
constitute a good delivery in fulfillment of an Exchange contract.

\[Rule 7.08 added effective March 14, 1996.\]

Rule 7.09. LICENSED WEIGHERS

Metals shall be weighed only by weighmasters licensed and/or designated
by the Exchange. Official weighmasters may be licensed and/or designated
by the Exchange either upon application or upon the Board's own motion.

Weighmasters licensed and/or designated by the Exchange shall pay such
annual fee to the Exchange as the Board may fix, in its discretion. Any
license and/or designation issued as above provided may be canceled by
the Exchange at any time by a notice in writing stating the intention to
cancel, given by the Exchange to the weighmaster; in such event, the
pro-rata amount of the fee paid, if any, shall be refunded.

Notice of such cancellation shall be **\[posted upon the bulletin board
and\]** mailed to members of the Exchange.

\[Rule 7.09 added effective March 14, 1996.\]

Rule 7.10. IMPORT DUTIES AND DOMESTIC TAXES

\(a\) Whenever an import duty or import tax is levied upon silver or
gold, such import duty or import tax shall be assumed and be payable by
the buyer upon the delivery on an Exchange contract of any silver or
gold upon which such import duty or import tax is payable.

\(b\) When delivered from a U.S. Exchange licensed warehouse, Copper
**[and Aluminum]{.underline}** shall be delivered free of all U.S.
import duties or U.S. import taxes.

\(c\) Whenever an internal tax of any kind is levied by the government
of the country in which an Exchange licensed warehouse is located, upon
any metal which is delivered upon an Exchange contract and such tax is
paid by the seller in connection with delivery upon such contract, the
amount of such tax shall be added to the contract price by the seller in
his invoice when delivery is made, and the amount thereof shall be paid
by the buyer.

\[Rule 7.10 added effective March 14, 1996.\]

Rule 7.11. REPORTING RECEIPTS AND WITHDRAWALS

All warehouses licensed by the Exchange shall report all receipts and
deliveries of metals tenderable against Exchange contracts on forms
furnished by the Exchange, or facsimiles thereof, prior to the time
designated by the Exchange.

All metals bearing an approved brand included in the official lists of
the Exchange should be included in the report, including cathodes **[and
T-bar or Low-profile sow]{.underline}** of an approved
refiner**[/smelter]{.underline}**. Copper **[or aluminum]{.underline}**
in bond must be reported.

All metals must be reported even though they are not weighed into
contract units or indications given by the storer that they are intended
for Exchange delivery.

The report shall be sent on the day any change occurs in the stock.
REPORTS SHOULD NOT BE WITHHELD AND ACCUMULATED WITH ANOTHER DAY'S
RECEIPTS OR WITHDRAWALS. The tonnage of copper **[or the pieces and/or
of aluminum]{.underline}** actually received in or withdrawn from the
warehouse each day must be reported the same day.

For warehouses outside the Port of New York, transmission of the reports
by fax is required.

A check on the 15th of each month of **[the warehouse
\[]{.underline}your\]** records against actual inventory should be made
to uncover any possible error or omission in previous reports.

\[Rule 7.11 added effective March 14, 1996.\]

Rule 7.12. CONFORMITY WITH UNITED STATES STANDARDS

Every contract for commodity futures traded on the Exchange shall
require delivery thereunder of commodities of grades conforming to
United States standards if such standards for such commodity shall have
been officially promulgated and adopted by the Commission; provided,
however, that if such standards adopted by the Commission differ from
the standards for such contract adopted by the Exchange, the standard
adopted by the Commission shall not apply to the existing contracts.

\[Rule 7.12 added effective March 14, 1996.\]

Rule 7.13. OUT-LABOR CHARGES

Where "in and out labor" charges have been paid as evidenced by the
Warehouse Receipt, or otherwise, the seller shall be entitled to charge
the buyer for one-half of such "in and out labor" charges; in other
words, the buyer will have to assume the "out labor" charges.

\[Rule 7.13 added effective March 14, 1996.\]

Rule 7.14. REVOCATION OF DESIGNATION AS APPROVED WAREHOUSE, VAULT OR
STORE

Any approved warehouse, vault or store may be declared disapproved at
any time if the operator thereof does not comply with the terms and
conditions set forth in this Chapter, and the terms and conditions of
the application for approval as they may be amended from time to time in
the future. In the event the approval of a warehouse, vault or store is
revoked by the Board, the Board shall cause a notice of such revocation
to be given to all Members and Member Firms and also the period of time,
if any, during which the receipts of other documents issued by such
warehouse, vault or store shall thereafter be deliverable in
satisfaction of Exchange contracts under the By-Laws and Rules.

\[Rule 7.14 amended and redesignated (Formerly Rule 7.03) effective
March 14, 1996.\]

and buyer, respectively, if the option is a put option, of a Commodity
Exchange Inc. Aluminum futures contract on the terms stated above.

The contract is, any aluminum contract resulting from the exercise shall
be, made in view of, and in all respects subject to the By-Laws, Rules
and Resolutions of Commodity Exchange, Inc.

For and in consideration of a premium which the option buyer pays to the
option seller, the undersigned accepts this contract with all its
obligations and conditions.

Verbal contracts (Which shall always be presumed to have been made in
the approved form) shall have the same standing, force and effect as
written ones, if notice in writing of such contracts shall have been
given by one of the parties thereto to the other party during the day on
which the contract is made.