the Custodian has determined that
Physical Gold credited to the Fund Allocated Account does not comply with the
Rules and will be replaced and (ii) when replacement Physical Gold has been
credited to the Fund Allocated Account in accordance with the above
instructions. The cost and risk of any such replacement shall be borne by the
Custodian.
8. SUB-CUSTODIANS
8.1 Sub-Custodians:
(i) The Custodian may employ Sub-Custodians solely for the temporary custody and
safekeeping of Physical Gold until transported to the Custodian's London vault
premises as provided in clause 7.4. The Sub-Custodians the Custodian selects may
themselves select sub-custodians to provide such temporary custody and
safekeeping of Physical Gold (each an "Indirect Sub-Custodian"), but such
sub-custodians shall not by such selection or otherwise be, or be considered to
be, a Sub-Custodian as such term is used herein.
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(ii) The Custodian will use reasonable care in selecting any Sub-Custodian and
will only use an LPMCL approved delivery location. In selecting any
Sub-Custodian with reasonable care, the Custodian is to determine if such
Sub-Custodian can reasonably be expected to operate in a reasonable and prudent
manner and in compliance with the Rules and all other relevant laws, rules and
regulations applicable to its services as a sub-custodian of Gold.
(iii) As of the date of this Agreement, the Sub-Custodians that the Custodian
may use for the purposes of this Agreement are: Bank of England, Brink's
Limited, G4S Cash Solutions (UK) Limited, HSBC Bank plc, JP Morgan Chase,
Malca-Amit Commodities Ltd and Loomis International (UK) Ltd.
(iv) The Custodian will notify each of the Trust and the Sponsor within two
Business Days (i) of the name and address of any new Sub-Custodian (i.e. in
addition to those referred to in (iii) above or previously notified pursuant to
this clause 8.1(iv)) to be used by the Custodian for the purposes of this
Agreement, or (ii) if it terminates its relationship with any Sub-Custodian that
it uses for the purposes of this Agreement. The Custodian will otherwise provide
the reports set forth on Schedule B with respect to Sub-Custodians and any
Indirect Sub-Custodians.
(v) The receipt of notice by each of the Trust and the Sponsor that the
Custodian has selected a Sub-Custodian shall not be deemed to limit the
Custodian's responsibility in selecting such Sub-Custodian.
8.2 Liability: Except for the Custodian's obligations under clauses 2.7, 7.2,
7.3 and 7.4, the Custodian shall not be liable in contract, tort or otherwise
for any loss, damage or expense arising directly or indirectly from an act or
omission, or insolvency, of any Sub-Custodian or any further delegate of such
Sub-Custodian unless the appointment of that Sub-Custodian was made by the
Custodian fraudulently, negligently or in bad faith.
8.3 Notice: The Custodian will provide the Trust upon request with the name and
address of any Sub-Custodian the Custodian selects and Indirect Sub-Custodian
selected or used by such Sub-Custodian, along with any other information which
the Trust may reasonably request concerning the appointment of such
Sub-Custodian or