Document:

c57028_ex10-2.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.2 

JPMORGAN CHASE BANK, N.A. 

and 

THE BANK OF NEW YORK MELLON 

solely in its capacity as trustee of the ETFS Gold Trust 

and not
individually 

 

 

UNALLOCATED ACCOUNT AGREEMENT  

 

	
THIS AGREEMENT is made with effect on and from
_______, 2009  
	   
	
BETWEEN  
	   
	
(1)  	   	
JPMORGAN CHASE BANK, N.A, whose principal place of business in
England is at 125 London Wall, London EC2Y 5AJ (the “Custodian”);  
	   
	
(2)  	   	
THE BANK OF NEW YORK MELLON, a New York banking
corporation, solely in its capacity as trustee of the ETFS Gold Trust
created under the Trust Agreement identified below and not individually
(the “Trustee”), which expression shall, wherever the context so admits,
include the named Trustee and all other persons or companies for the time
being the trustee or trustees of the Trust Agreement (as defined below) as
trustee for the Shareholders (as defined in the Trust Agreement).  
	   
	
INTRODUCTION  
	   
	
(1)  	   	
The Trustee has agreed to act as trustee for the Shareholders of the Shares
pursuant to the Trust Agreement.  
	   
	
(2)  	   	
An Authorized Participant may apply to become a Shareholder by: (i) applying
for Shares in accordance with an Authorized Participant Agreement and (ii)
depositing the relevant amount of Bullion into the Unallocated Account.  
	   
	
(3)  	   	
The Custodian has agreed to transfer Bullion deposited into the Unallocated
Account to the Allocated Account and where applicable, other accounts,
pursuant to the terms of this Agreement.  
	   
	
(4)  	   	
In order to effect redemptions of Shares, Bullion must be transferred from the
Allocated Account to the Unallocated Account by way of de-allocation, and
must then be delivered to the Shareholder Account.  
	   
	
(6)  	   	
The Trustee has agreed that the Unallocated Account will be established by the
Trustee for the account of the Trust, and that the Trustee will have the sole
right to give instructions for the making of any payments into or out of the
Unallocated Account.  
	   
	   
	
IT IS AGREED AS FOLLOWS  
	   
	   
	
1.  	   	
INTERPRETATION  
	   
	
1.1  	   	
Definitions: Words and expressions defined in the Prospectus, unless
otherwise defined herein, have the same meanings when used in this
Agreement. In addition, in this Agreement, unless there is anything in the
subject or context inconsistent therewith the following expressions shall have
the following meanings:  
	   
	   	   	
“Affiliate” means an entity that directly or indirectly through one or more  

1

	 	
intermediaries, controls, or is controlled by, or is under common control with
the Custodian;  
	 	   
	 	
“Allocated Account” means the allocated Bullion account number [ ]
established in the name of the Trustee with the Custodian pursuant to the
Allocated Account Agreement;  
	 	   
	 	
“Allocated Account Agreement” means the Allocated Account Agreement
dated 1 June 2009 between the Trustee, the Trust and the Custodian pursuant
to which the Allocated Account is established and operated;  
	 	   
	 	
“AP Account” means a loco London or Zurich account maintained on an
unallocated basis by the Custodian or a Bullion clearing bank for the
Authorized Participant, as specified in the applicable Transfer Notice;  
	 	   
	 	
“Application” means an offer by an Authorized Participant to the Trust (in the
form prescribed by the Trust) to subscribe for Shares, being an offer on terms
referred to in the Prospectus and in accordance with the provisions of the
relevant Authorized Participant Agreement;  
	 	   
	 	
“Application Date” means the New York Business Day on which a valid
Application Form is received (or deemed to be received) by the Trustee in
accordance with the relevant Authorized Participant Agreement;  
	 	   
	 	
“Application Form” means a Purchase Order as defined in the Authorized
Participant Agreement;  
	 	   
	 	
“Authorized Participant” means a person which has entered into an
Authorized Participant Agreement with the Sponsor and the Trustee in relation
to Shares and which: (a) is a person who (i) is a registered broker-dealer or
other securities market participant such as a bank or other financial institution
which is not required to register as a broker-dealer to engage in securities
transactions and (ii) is a participant in DTC; (b) is approved by the Sponsor (in
its absolute discretion); and (c) has established an AP Account;  
	 	   
	 	
“Authorized Participant Agreement” means a written agreement between
the Trustee, the Sponsor and another person under which such person is
appointed to act as an “Authorized Participant,” in relation to Shares and if
such agreement is subject to conditions precedent, provided that such
conditions have been satisfied;  
	 	   
	 	
“Authorized Signatory” means, in relation to any person, an individual who
is duly empowered to bind such person and whose authority is evidenced by a
resolution of the board of directors (or any other appropriate means of
authorisation) of such person, and, in relation to the Trustee, any individual
named in the Trustee’s Authorized Signatory list having due authority to bind
the Trustee, which list shall be provided by the Trustee from time to time;  
	 	   
	 	
“Availability Date” means the London/Zurich Business Day on which the
Trustee requests the Custodian to credit to the Unallocated Account Bullion  

2

	 	
debited from the Allocated Account;  
	 	   
	 	
“Benchmark Price” means, as of any day, that publicly available per ounce
price of Bullion used by the Trust on such day to value the Trust’s Bullion,
which is expected to be the London PM Fix but is subject to change by the
Sponsor in accordance with the Trust Agreement;  
	 	   
	 	
“Bullion” means gold in physical form complying with the Rules of the
Relevant Association held by the Custodian or any Sub-Custodian under this
Agreement and/or any credit balance in the Unallocated Account as the
context requires;  
	 	   
	 	
“Conditions” means the terms and conditions on and subject to which Shares
are issued in the form or substantially in the form set out in the Trust
Agreement;  
	 	   
	 	
“General Notice” means any notice given in accordance with this Agreement
other than a Transfer Notice;  
	 	   
	 	
“Loco London” means in respect of an account holding Bullion, the custody,
trading or clearing of such Bullion in London, United Kingdom;  
	 	   
	 	
“Loco Zurich” means in respect of an account holding Bullion, the custody,
trading or clearing of such Bullion in Zurich, Switzerland;  
	 	   
	 	
“London Business Day” means a day (other than a Saturday or a Sunday or a
public holiday in England) on which commercial banks generally and the
London Bullion market are open for the transaction of business in London;  
	 	   
	 	
“London/Zurich Business Day” means a day which is both a London
Business Day and a Zurich Business Day;  
	 	   
	 	
“Management Fee” means the amount of Bullion which may be debited from
the Metal Accounts at the end of each month and paid to the Trust in
accordance with the terms of the Prospectus;  
	 	   
	 	
“Metal Accounts” means the Allocated Account and the Unallocated
Account;  
	 	   
	 	
“Metal Entitlement” means as at any date and in relation to any Share the
amount(s) of Bullion to which the Shareholder is entitled on Redemption of
that Share on that date in accordance with the Conditions;  
	 	   
	 	
“New York Business Day” means a “Business Day” as defined in the Trust
Agreement;  
	 	   
	 	
“Point of Delivery” means such date and time that the recipient (or its agent)
acknowledges in written form its receipt of delivery of Bullion;  
	 	   
	 	
“Prospectus” means the prospectus constituting a part of the registration  

3

	 	
statement filed on Form S-1, Registration Number 333-158221 with the
Securities Exchange Commission in accordance with the U.S. Securities Act
of 1933, as amended, in relation to the Shares dated on or about [ ] as the
same may be modified, supplemented or amended from time to time;  
	 	   
	 	
“Redemption” means the redemption of Shares by the Trust in accordance
with the Conditions;  
	 	   
	 	
“Redemption Obligations” means the obligation of the Trust on Redemption
of a Share to make payment or deliver Bullion to the relevant Shareholder in
accordance with the Conditions;  
	 	   
	 	
“Relevant Association” means the London Bullion Market Association or its
successors;  
	 	   
	 	
“Rules” means the rules, regulations, practices and customs of the Relevant
Association (including without limitation the rules as to Good Delivery), the
Bank of England and such other regulatory authority or other body as shall
affect the activities contemplated by this Agreement;  
	 	   
	 	
“Shareholder” means the beneficial owner of one or more Shares;  
	 	   
	 	
“Shareholder Account” means a loco London or Zurich account maintained
on an unallocated basis by the Custodian or a Bullion clearing bank, as
applicable, for an Authorized Participant or the Shareholder of Shares, as
specified in the applicable Redemption Notice;  
	 	   
	 	
“Shares” means the units of fractional undivided beneficial interest in and
ownership of the Trust which are issued by the Trust and named “ETFS
Physical Swiss Gold Shares” created pursuant to and constituted by the Trust
Agreement;  
	 	   
	 	
“Sponsor” means ETF Securities USA LLC, its successors and assigns and
any successor Sponsor appointed pursuant to the Trust Agreement;  
	 	   
	 	
“Sponsor Account” means a loco London or Zurich account maintained on an
unallocated basis by the Custodian or a Bullion clearing bank, as applicable,
for the Sponsor;  
	 	   
	 	
“Transfer Notice” means any notice of a deposit or withdrawal made
pursuant to clause 3 or clause 4 of this Agreement;  
	 	   
	 	
“Trust” means the ETFS Gold Trust formed pursuant to the Trust Agreement;  
	 	   
	 	
“Trust Agreement” means
the Depositary Trust Agreement of the ETFS
Gold Trust dated on or about [ ], as amended from time to time, between the
ETF Securities USA LLC, as Sponsor, and the Trustee;  
	 	   
	 	
“Unallocated Account” means the loco London or loco Zurich unallocated
Bullion account, number [ ], established in the name of the Trustee, with the  

4

	   	   	
Custodian pursuant to this Agreement on an Unallocated Basis;  
	   
	   	   	
“Unallocated Basis” means, with respect to a Metal Account maintained with
us, that the person in whose name the account is held is entitled to delivery in
accordance with the Rules of an amount of Metal equal to the amount of
bullion standing to the credit of the person's account but is an unsecured
creditor in any Bullion that the Custodian owns or holds.  
	   
	   	   	
“VAT” means value added tax as provided for in the Value Added Tax Act
1994 (as amended or re-enacted from time to time) and legislation
supplemental thereto and any other tax (whether imposed in the United
Kingdom in substitution thereof or in addition thereto or elsewhere) of a
similar fiscal nature; and  
	   
	   	   	
“Withdrawal Date” means the London/Zurich Business Day on which the
Trustee wishes a withdrawal of Bullion from the Unallocated Account to take
place.  
	   
	   	   	
“Zurich Business Day” means a day (other than a Saturday or a Sunday or a
public holiday in Zurich) on which commercial banks generally and the Zurich
bullion market is open for the transaction of business in Zurich;  
	   
	   	   	
“Zurich Sub-Custodian” means any firm selected by the Custodian to
hold gold on behalf of the Custodian in the firm’s Zurich vault premises
on a segregated basis, in the manner provided in clauses 7.2 and 7.3 and
whose appointment has been approved in writing by the Sponsor (such
approval not to be unreasonably with held).  
	   
	
1.2  	   	
Headings: The headings in this Agreement do not affect its interpretation.  
	   
	
1.3  	   	
Singular and plural: References to the singular include the plural and vice
versa.  
	   
	
2.  	   	
UNALLOCATED ACCOUNT  
	   
	
2.1  	   	
Opening Unallocated Account: The Custodian shall open and maintain the
Unallocated Account in the name of the Trustee (in its capacity as trustee for
the Shareholders).  
	   
	
2.2  	   	
Denomination of Unallocated Account: The Unallocated Account will hold
deposits of Bullion and will be denominated in fine troy ounces.  
	   
	
2.3  	   	
Unallocated Account Reports: For each London/Zurich Business Day, by no
later than the following London/Zurich Business Day, the Custodian will
provide the Trustee access to information showing the increases and decreases
to the Bullion standing to the Trustee’s credit in the Unallocated Account, and
identifying separately each transaction and the New York or London Business
Day on which it occurred. On each London/Zurich Business Day on which
Bullion is deposited or that is a Withdrawal Date, the Custodian will send the
Trustee a notification as of 9:00 a.m. (New York time) of (i) each separate  

5

	   	   	
transaction transferring Bullion to the Unallocated Account, including the
amount of Bullion transferred to the Unallocated Account and the AP Account
from which such Bullion is transferred, (ii) the amount of Bullion transferred
from the Unallocated Account to the Allocated Account and (iii) the amount of
any remaining Bullion in the Unallocated Account, and the Custodian will use
commercially reasonable efforts to send the notification by approximately 9:00
a.m. (New York time). In addition, the Custodian will provide the Trustee
such information about the increases and decreases to the Bullion standing to
the Trustee’s credit in the Unallocated Account on a same-day basis at such
other times and in such other form as the Trustee and the Custodian shall
agree. For each calendar month, the Custodian will provide the Trustee within
a reasonable time after the end of the month a statement of account for the
Unallocated Account. Such reports will be made available to the Trustee by
means of the Custodian’s proprietary electronic Bullion Transfer System
website (“eBTS”).  
	   
	
2.4  	   	
Reversal of Entries: The Custodian at all times reserves the right to reverse
any provisional or erroneous entries to the Unallocated Account with effect
back-valued to the date upon which the final or correct entry (or no entry)
should have been made (including, without limitation, where the Custodian
has credited a deposit made pursuant to clause 3.1(b) and on receipt by the
Custodian of the Bullion if it is determined that the Bullion does not comply
with the Rules or that it is not the required weight).  
	   
	
2.5  	   	
Provision of Information: The Custodian agrees that it will forthwith notify
the Trustee in writing if any encumbrance of which it is aware is or is
purported to have been created over or in respect of the Unallocated Account
or any of the amounts standing to the credit thereof.  
	   
	
2.6  	   	
Access: The Custodian will allow the Sponsor and the Trustee and their
Bullion auditors (currently Inspectorate International Limited) only such
access to its premises during normal business hours, to examine the Bullion
and such records, as they may reasonably require to perform their respective
duties with regard to investors in Shares. The Trustee agrees that any such
access shall be subject to execution of a confidentiality agreement and
agreement to the Custodian’s security procedures, and such audit shall be at
the Trust’s expense and shall be limited to no more than twice a calendar year,
provided however that any second visit within the same calendar year shall be
subject to the consent of the Custodian, such consent not to be unreasonably
withheld.  
	   
	
3. DEPOSITS  
	   
	
3.1  	   	
Procedure: The Custodian shall receive deposits of Bullion into the
Unallocated Account (in the manner and accompanied by such documentation
as the Custodian may require) by:  
	   

	   	   	(a)	
 de-allocation of Bullion held in the Allocated Account
on redemption of
Shares by a Shareholder or for any other purposed authorized by the
Trust Agreement; or  

6

	   	   	
(b)  	
    de-allocation of Bullion held in the Allocated Account for payment of
    the Management Fee; or  
	   
	   	   	
(c)  	
    transfer of Bullion from an AP Account relating to the same kind of
    Bullion and having the same denomination as that to which the
    Unallocated Account relates on Application by an Authorized Participant
    for Shares.  
	   
	   	   	
No other methods of deposit are permitted.  
	   
	
3.2  	   	
Loco Designation for Deposits: The Custodian shall receive deposits of
Bullion pursuant to clause 3.1 as follows:  
	   
	   	   	
(a)  	
    if pursuant to clause 3.1(a) and (b) above, then into the Unallocated
    Account loco Zurich  
	   
	   	   	
(b)  	
    if pursuant to clause 3.1(c) above, then into the Unallocated Account
    loco London or loco Zurich, provided that, the loco designation shall be
    the same as for the AP Account from which the transfer is made.  
	   
	
3.3  	   	
Notice Requirements: Notice of intended deposit must be received by the
Custodian from the Trustee no later than 3:00 p.m. (London time) one
London/Zurich Business Day prior to the Availability Date and specify the
weight (in fine troy ounces of gold) to be credited to the Unallocated Account,
the Availability Date, the account from which such deposit will be transferred,
and any other information which the Custodian may from time to time require.
When by reference to the Trustee’s notifications and instructions to the
Custodian, the Custodian reasonably believes an amount of Bullion has been
credited to the Unallocated Account in error, the Custodian will notify the
Trustee promptly and, pending a joint resolution of the error, will treat such
amount as not being subject to the standing instruction in clause 5.2 below.  
	   
	
3.4  	   	
Right to Amend Procedure: The Custodian may amend the procedure in
relation to the deposit of Bullion only where such amendment is caused by a
change in the Rules or procedures of the Relevant Association. The Custodian
will, whenever practicable, notify the Trustee within a commercially
reasonable time before the Custodian amends its procedures or imposes
additional ones in relation to the transfer of Bullion into and from the
Unallocated Account, and in doing so the Custodian will consider the
Trustee’s needs to communicate any such change to Authorized Participants
and others.  
	   
	
4. WITHDRAWALS  
	   
	
4.1  	   	
Procedure: The Trustee may at any time give instructions to the Custodian for
the withdrawal of Bullion standing to the credit of the Unallocated Account in
such form as may be agreed by the parties from time to time, provided that a
withdrawal may be made only by:  

7

	   	   	
(a)  	
    transfer to a Shareholder Account relating to the same kind of Bullion
    and having the same denomination as that to which the Unallocated
    Account relates when Shares are redeemed; or  
	   
	   	   	
(b)  	
    transfer to the Sponsor Account for payment of the Management Fee; or  
	   
	   	   	
(c)  	
    transfer of Bullion to the Allocated Account; or  
	   
	   	   	
(d)  	
    the collection of Bullion from the Custodian at its vault premises, or such
    other location as the Custodian may direct by notice to the party taking
    delivery received not later than one London/Zurich Business Day prior to
    the Availability Date, at the Trust’s expense and risk; or  
	   
	   	   	
(e)  	
    delivery of Bullion to such location as the Trustee directs, at the Trust’s
    expense and risk;  
	   
	   	   	
and no other methods of withdrawal are permitted, save that the Trustee agrees
to exercise its rights under clauses 4.1(d) and (e) on an exceptional basis only.
Any Bullion made available to the relevant person (as instructed by the
Trustee) pursuant to clause 4.1(d) and (e) will be in a form which complies
with the Rules or in such other form as may be agreed between the Trustee and
the Custodian the combined fine weight of which will not exceed the number
of fine ounces of Bullion the Trustee has instructed the Custodian to debit. The
Custodian is entitled to select the Bullion to be made available to the relevant
person (as instructed by the Trustee) provided it is in the same form as that
deposited. To the extent that the Trustee is authorized to sell Bullion under
the Trust Agreement, the Custodian may, but is not required to, purchase such
Bullion; provided that the Custodian’s purchase price for such Bullion must be
the Benchmark Price.  
	   
	
4.2  	   	
Loco Designations for Withdrawals: The Custodian shall transfer Bullion
from the Unallocated Account loco Zurich for all withdrawals under clause
5.1.      
	   
	
4.3  	   	
Loco Swaps: In the event that the Custodian receives a loco London deposit
pursuant to clause 3.1(c) above, the Custodian shall effectuate withdrawals
pursuant to 4.1(c) by transferring Bullion from the Unallocated Account loco
London to the Unallocated Account loco Zurich and then to the Allocated
Account. The Custodian shall bear all costs, including all insurance costs,
relating to such transfer.  
	   
	
4.4  	   	
Notice Requirements: Any notice relating to a withdrawal of Bullion must be
in writing and:  
	   
	   	   	
(a)  	
    if it relates to a withdrawal pursuant to clauses 4.1(a) or 4.1(b), to be in
    the form in such form as may be agreed by the parties from time to time;  
	   
	   	   	
and in all cases be received by the Custodian no later than 3:00 p.m (London
time) on the Withdrawal Date unless otherwise agreed.  

8

	   	   	
(b)  	
if it relates to a transfer pursuant to clause 4.1(c), be in the form of an
Application (which shall be sufficient instructions for the purposes of
this Agreement) and be received by the Custodian no later than 3:00p.m.
(London time) on the day which is one London/Zurich Business Day
prior to the Withdrawal Date.  
	   
	   	   	
(c)  	
if it relates to a withdrawal pursuant to clause 4.1(d) or (e), be received
by the Custodian no later than 11:30 a.m. (London time) not less than
two London/Zurich Business Days prior to the Withdrawal Date unless
otherwise agreed and specify the name of the person or carrier that will
collect the Bullion from the Custodian or the identity of the person to
whom delivery is to be made, as the case may be;  
	   
	   	   	
and in all cases, specify the weight (in fine troy ounces of gold) of the Bullion
to be debited to the Unallocated Account, the Withdrawal Date and any other
information which the Custodian may, with the agreement of the Trustee from
time to time require.  
	   
	
4.5  	   	
Right to Amend Procedure: The Custodian may amend the procedure for the
withdrawal of Bullion from the Unallocated Account only where such
amendment is caused by a change in the Rules or procedures of the Relevant
Association. Any such amendment will be subject to the conditions of the
preceding clause 4.3 and will be promptly notified to the Trust and the
Trustee, such notice to be given in advance of implementation whenever
practicable.  
	   
	
4.6  	   	
Delivery Obligations: Unless otherwise instructed by the Trustee on behalf of
the Trust or the relevant person, the Custodian shall make any transportation
and insurance arrangements in respect of delivery of Bullion in accordance
with its usual practice. Where instructions are given, the Custodian shall use
all reasonable efforts to comply with the same. The Custodian shall not be
obliged to effect any requested delivery if, in its reasonable opinion, this
would cause the Custodian or its agents to be in breach of the Rules or other
applicable law, court order or regulation; the costs incurred would be
excessive or delivery is impracticable for any reason. With the exception of
any delivery pursuant to clause 4.3, all insurance and transportation costs shall
be for the account of the Trust.  
	   
	
4.7  	   	
Risk: With the exception of any transfer pursuant to clause 4.3, where there is
a shipment from the Custodian of Bullion, all right, title and risk in and to such
Bullion shall pass at the Point of Delivery to the relevant person for whose
account the Bullion is being delivered.  
	   
	
4.8  	   	
Allocation: Subject to clause 5.2 below, in the case of a transfer under clause
4.1(c), the Custodian will use its commercially reasonable endeavours to
complete the allocation of such deposits of Bullion by not later than 2:00 p.m.
(London time) the London/Zurich Business Day after receipt of notice given in
the form prescribed in clause 4.2(b). Following the Custodian’s receipt of such
notice, the Custodian shall identify bars or ingots of a weight most closely
approximating, but not exceeding, the balance in the Unallocated Account and  

9

	   	   	
shall transfer such weight from the Unallocated Account to the Allocated
Account. The Trustee acknowledges that the process of allocation of Bullion
to the Allocated Account from the Unallocated Account may involve minimal
adjustments to the weights of Bullion to be allocated to adjust such weight to
the number of whole bars available.  
	   
	
5. INSTRUCTIONS  
	   
	
5.1  	   	
Giving of Instructions: It is hereby agreed that only the Trustee shall have the
right to give instructions to the Custodian for deposit of Bullion to or
withdrawal of Bullion from the Unallocated Account. All instructions given by
the Trustee to the Custodian shall be given in writing and signed by two
Authorized Signatories of the Trustee. The Trustee shall notify the Custodian
in writing of the names of the people who are authorized to give instructions
on the Trustee’s behalf. Until the Custodian receives written notice to the
contrary, the Custodian is entitled to assume that any of those people have full
and unrestricted power to give instructions on the Trustee’s behalf. The
Custodian is also entitled to rely on any instructions which are from, or which
purport to emanate from, any person who appears to have such authority.  
	   
	
5.2  	   	
Continuous Allocation of Bullion: Without prejudice to clause 5.1 above,
unless otherwise notified by the Trustee in writing, the Trustee hereby
instructs the Custodian that, whenever Bullion is to be transferred from an AP
Account to the Metal Accounts, it will combine such Bullion with any Bullion
then standing to the credit of the Unallocated Account (excluding Bullion
which has been de-allocated in order to effect delivery of Bullion to a
redeeming Shareholder or pursuant to other withdrawal occurring on such day)
and to the fullest extent possible, transfer such Bullion to the Allocated
Account such that the amount of Bullion that remains standing to the credit of
the Trustee in the Unallocated Account does not exceed 430.000 fine ounces at
the close of each London/Zurich Business Day.  
	   
	
5.3  	   	
Account not to be Overdrawn: The Unallocated Account may not at any time
have a debit balance thereon, and it is hereby agreed that no instruction shall
be valid to the extent that the effect thereof would be for the Unallocated
Account to have a debit balance thereon.  
	   
	
5.4  	   	
Amendments: Once given, instructions continue in full force and effect until
they are cancelled, amended or superseded. Notice of amendment shall have
effect only upon actual receipt by the Custodian.  
	   
	
5.5  	   	
Unclear or Ambiguous Instructions: If, in the Custodian’s opinion, any
instructions are unclear or ambiguous, the Custodian shall use reasonable
endeavours (taking into account any relevant time constraints) to obtain
clarification of those instructions from the Trustee and, failing that, the
Custodian may in its absolute discretion and without any liability on its part,
act upon what the Custodian believes in good faith such instructions to be or
refuse to take any action or execute such instructions until any ambiguity or
conflict has been resolved to the Custodian’s satisfaction.  

10

	
5.6  	   	
Refusal to Execute: The Custodian will, where practicable, refuse to execute
instructions if in the Custodian’s opinion they are or may be contrary to the
Rules or any applicable law.  
	   
	
6. CONFIDENTIALITY  
	   
	
6.1  	   	
Disclosure to Others: Subject to clause 6.2, each of the Trustee and the
Custodian shall respect the confidentiality of information acquired under this
Agreement and will not, without the other party’s consent, disclose to any
other person any transaction or other information acquired about the other
party, its business or the Trust under this Agreement, in the event such other
party has made clear, at or before the time such information is provided, that
such information is being provided on a confidential basis.  
	   
	
6.2  	   	
Permitted Disclosures: Each party accepts that from time to time any other
party may be required by law or the Rules, or requested by a government
department or agency, fiscal body or regulatory or listing authority or as
otherwise necessary in conducting the Trust’s business, to disclose information
acquired under this Agreement. In addition, the disclosure of such information
may be required by a party's auditors, by its legal or other advisors, by a
company which is in the same group of companies as a party (i.e., a subsidiary
or holding company of a party) or (in the case of the Trustee) by any
beneficiary of the trusts constituted by the Trust Agreement. Each party
irrevocably authorises the others to make such disclosures without further
reference to such party.  
	   
	
7. CUSTODY SERVICES  
	   
	
7.1  	   	
Appointment: The Trustee hereby appoints the Custodian to act as custodian
of the Bullion in accordance with this Agreement and any Rules which apply
to the Custodian.  
	   
	
7.2  	   	
Safekeeping of Bullion: The Custodian will be responsible for the safekeeping
of the Bullion on the terms and conditions of this Agreement.  
	   
	
7.3  	   	
Ownership of Bullion: The Custodian will identify in its books that the
Bullion belongs to the Trustee (on trust for the Shareholders).  
	   
	   
	
8. REPRESENTATIONS  
	   
	
8.1  	   	
Trustee’s Representations: The Trustee represents and warrants to the
Custodian that (such representations and warranties being deemed to be
repeated upon each occasion of withdrawal of Bullion under this Agreement):  
	   

	   	   	(1)	
 the Trustee has all necessary authority, powers, consents,
licences and authorisations (which have not been revoked) and has taken all necessary action to enable it lawfully to enter into and perform its duties and obligations under this Agreement;  

11

	   	   	
(2)  	
the persons entering into this Agreement on the Trustee’s behalf have
been duly Authorized to do so; and  
	   
	   	   	
(3)  	
this Agreement and the obligations created under it are binding upon
and enforceable against the Trustee, as Trustee, in accordance with its
terms (subject to applicable principles of equity) and do not and will
not violate the terms of the Rules or any order, charge or agreement
by which the Trustee is bound.  
	   
	
8.2  	   	
Custodian’s Representations: The Custodian represents and warrants to the
Trust that (such representations and warranties being deemed to be repeated
upon each occasion of withdrawal of Bullion under this Agreement):  
	   
	   	   	
(1)  	
the Custodian has all necessary authority, powers, consents, licences
and authorisations (which have not been revoked) and has taken all
necessary action to enable it lawfully to enter into and perform its
duties and obligations under this Agreement;  
	   
	   	   	
(2)  	
the persons entering into this Agreement on behalf of the Custodian
have been duly Authorized to do so; and  
	   
	   	   	
(3)  	
this Agreement and the obligations created under it are binding upon
the Custodian and enforceable against the Custodian in accordance
with its terms (subject to applicable principles of equity) and do not
and will not violate the terms of the Rules or any order, charge or
agreement by which the Custodian is bound.  
	   
	
9. FEES AND EXPENSES  
	   
	
9.1  	   	
Fees: There will be no fees charged by the Custodian for the services provided
by it under this Agreement.  
	   
	
9.2  	   	
Expenses: The Trustee has procured the Sponsor’s written agreement, to
which the Custodian has agreed, to pay to the Custodian on demand all costs,
charges and expenses (excluding any relevant taxes and VAT, duties, other
governmental charges, fees for storage and insurance of the Bullion and
indemnification obligations of the Trustee under clause 11.5) incurred by the
Custodian in connection with the performance of its duties and obligations
under this Agreement or otherwise in connection with the Bullion. The
Trustee will procure payment on demand, solely from and to the extent of the
assets of the Trust, of any other costs, charges and expenses not assumed by
the Sponsor under its agreement with the Custodian procured under this clause
9.2 (including any relevant taxes and VAT, duties, other governmental charges
and indemnification claims of the Custodian payable by the Trustee pursuant
to clause 11.5, but excluding fees for storage and insurance of the Bullion)
incurred by the Custodian in connection with the Bullion.  
	   
	
9.3  	   	
Default Interest: If the Trustee fails to procure payment to the Custodian of
any amount when it is due, the Custodian reserves the right to charge interest
(both before and after any judgment) on any such unpaid amount calculated at  

12

	   	   	
a rate equal to 1% above the overnight London Interbank Offered Rate
(LIBOR) for the currency in which the amount is due. Interest will accrue on a
daily basis and will be due and payable as a separate debt.  
	   
	
9.4  	   	
Credit Balances: No interest or other amount will be paid by the
Custodian on any credit balance on an Unallocated Account.  
	   
	
9.5  	   	
Recovery from Trust: Amounts payable pursuant to this clause 9 shall not be
debited from the Unallocated Account, but shall be payable on behalf of the
Trust, and the Custodian hereby acknowledges that it will have no recourse
against Bullion standing to the credit of the Unallocated Account or to the
Trustee in respect of any such amounts.  
	   
	
10. VALUE ADDED TAX  
	   
	
10.1  	   	
VAT Inclusive: All sums payable under this Agreement by the Trust to the
Custodian shall be deemed to be inclusive of VAT if and to the extent VAT is
properly chargeable on any supplies made by the Custodian to the Trust
pursuant to this Agreement.  
	   
	
10.2  	   	
VAT Invoice: If VAT is properly chargeable on any supplies made by the
Custodian to the Trust pursuant to this Agreement, the Custodian shall provide
a valid VAT invoice to the Trust.  
	   
	
11. SCOPE OF RESPONSIBILITY  
	   
	
11.1  	   	
Exclusion of Liability: The Custodian will use reasonable care in the
performance of its duties under this Agreement and will only be responsible
for any loss or damage suffered as a direct result of any negligence, fraud or
wilful default on its part in the performance of its duties, and in which case its
liability will not exceed the market value of the Bullion lost or damaged at the
time such negligence, fraud or wilful default is discovered by the Custodian,
provided that the Custodian notifies the Trust and the Trustee promptly after
any discovery of such lost or damaged Bullion. If the Custodian delivers from
the Unallocated Account Bullion that is not of the fine weight the Custodian
has represented to the Trustee, recovery by the Trustee, to the extent such
recovery is otherwise allowed, shall not be barred by any delay in asserting a
claim because of the failure to discover such loss or damage regardless of
whether such loss or damage could or should have been discovered.  
	   
	
11.2  	   	
No Duty or Obligation: The Custodian is under no duty or obligation to make
or take any special arrangements or precautions beyond those required by the
Rules or as specifically set forth in this Agreement.  
	   
	
11.3  	   	
Insurance: The Custodian (or one of its Affiliates) shall make such insurance
arrangements from time to time in connection with the Custodian’s custodial
obligations under this Agreement as the Custodian considers appropriate and
will be responsible for all costs, fees and expenses (including any relevant
taxes) in relation to such insurance policy or policies. Upon reasonable prior
written notice, in connection with the preparation of the initial registration  

13

	   	   	
statement under the United States Securities Act of 1933, as amended,
covering any Shares, the Custodian will allow its insurance to be reviewed by
the Trustee and by the Sponsor. The Custodian also will allow the Trustee and
the Sponsor to review such insurance in connection with any amendment to
that initial registration statement and from time to time, in each case upon
reasonable prior written notice from the Trustee. Any permission to review the
Custodian’s insurance is limited to the term of this agreement and is
conditioned on the reviewing party executing a form of confidentiality
agreement provided by the Custodian, or if the confidentiality agreement is
already in force, acknowledging that the review is subject thereto.  
	   
	
11.4  	   	
Force Majeure: The Custodian shall not be liable for any delay in
performance, or for the non-performance of any of its obligations under this
Agreement by reason of any cause beyond the Custodian’s reasonable control.
This includes any act of God or war or terrorism or any breakdown,
malfunction or failure of transmission, communication or computer facilities,
industrial action, acts and regulations of any governmental or supra national
bodies or authorities or regulatory or self-regulatory organization, for any
reason, to perform its obligations; provided, however, that the Custodian
agrees to use reasonable efforts to assist the Trustee in finding a replacement
custodian (including, but not limited to, agreeing to an assignment of its rights
and obligations hereunder) should any event described in this Section 11.4 so
prevent the Custodian from performing its obligations.  
	   
	
11.5  	   	
Indemnity: The Trustee, solely from and to the extent of the assets of the
Trust, shall indemnify and keep indemnified the Custodian (on an after tax
basis) on demand against all costs and expenses, damages, liabilities and
losses (other than VAT and the expenses assumed by the Sponsor under its
agreement with the Custodian procured under clause 9.2) which the Custodian
may suffer or incur, directly or indirectly in connection with this Agreement
except to the extent that such sums are due directly to the negligence, wilful
default or fraud of the Custodian.  
	   
	
11.6  	   	
Third Parties: Except with respect to the Trust, which shall be considered a
beneficiary of this entire Agreement, and the Sponsor, which shall be a
beneficiary (as applicable) of clauses 2.6 and 11.3, the Custodian does not owe
any duty or obligation or have any liability towards any person who is not a
party to this Agreement. This Agreement does not confer a benefit on any
person who is not a party to it. The parties to this Agreement do not intend that
any term of this Agreement shall be enforceable by any person who is not a
party to it and do intend that the Contracts (Rights of Third Parties) 1999 Act
shall not apply to this Agreement. Nothing in this paragraph is intended to
limit the obligations hereunder of any successor Trustee of the Trust or to limit
the right of any successor Trustee of the Trust to enforce the Custodian’s
obligations hereunder.  
	   
	
12. TERM AND TERMINATION  
	   
	
12.1  	   	
Method: Subject to clauses 12.2, and 12.3 below, either the Trustee or the
Custodian may terminate this Agreement for any reason including if the  

14

	   	   	
Custodian or Zurich Sub-Custodian ceases to offer the services contemplated
by this Agreement to its clients or proposes to withdraw from the Bullion
business, by giving not less than 90 days’ written notice to the other party.
Any such notice given by the Trustee must specify:  
	   
	   	   	
(1)  	
the date on which the termination will take effect;  
	   
	   	   	
(2)  	
the person to whom the Bullion is to be made available; and  
	   
	   	   	
(3)  	
all other necessary arrangements for the redelivery of the Bullion to the
order of the Trustee.  
	   
	
12.2  	   	
Term: This Agreement shall have a fixed term up to and including five years
and will automatically renew for a further term of five years thereafter unless
terminated by the Parties in accordance with this clause 12; provided that
during such periods either the Trustee or the Custodian may terminate the
agreement immediately upon written notice if:  
	   
	   	   	
(1)  	
the Custodian ceases to offer the services contemplated by this
Agreement to its clients or proposes to withdraw from the Bullion
business;  
	   
	   	   	
(2)  	
it becomes unlawful for the Custodian to be a party to this Agreement or
to offer its services to the Trust on the terms contemplated by this
Agreement or it becomes unlawful for the Trustee or the Trust to receive
such services or for the Trustee to be a party to this Agreement;  
	   
	   	   	
(3)  	
there is any event which, in the Custodian’s sole view, indicates the
Trust’s insolvency or impending insolvency;  
	   
	   	   	
(4)  	
there is any event which, in the Trustee’s sole view, indicates the
Custodian’s insolvency or impending insolvency;  
	   
	   	   	
(5)  	
the Trust is to be terminated;  
	   
	   	   	
(6)  	
the Zurich Sub-Custodian ceases to offer the services contemplated by
this Agreement and the Allocated Account Agreement and the Custodian
and the Sponsor have not been able to identify a mutually agreeable
replacement Zurich Sub-Custodian within 90 days of the Custodian
notifying the Sponsor and the Trustee that the Zurich Sub-Custodian has
ceased to offer such services; or  
	   
	   	   	
(7)  	
the Allocated Account Agreement ceases to be in full force and effect at
any time, the Custodian shall have the right, by service of written notice
on the Trustee to terminate this Agreement immediately.  
	   
	
12.4  	   	
Change in Trustee: If there is any change in the identity of the Trustee in
accordance with the Trust Agreement, then the Custodian, the Trustee and the
Trust shall execute such documents and shall take such actions as the new
Trustee and the outgoing Trustee may reasonably require for the purpose of  

15

	   	   	
vesting in the new Trustee the rights and obligations of the outgoing Trustee,
and releasing the outgoing Trustee from its future obligations under this
Agreement.  
	   
	
12.5  	   	
Redelivery Arrangements: If the Trustee does not make arrangements
acceptable to the Custodian for the redelivery of the Bullion the Custodian
may continue to store the Bullion, in which case the Custodian will continue to
charge the fees and expenses payable under clause 10 of the Allocated
Account Agreement. If the Trustee has not made arrangements acceptable to
the Custodian for the redelivery of the Bullion within six months of the date
specified in the termination notice as the date on which the termination will
take effect, the Custodian will be entitled to sell the Bullion and account to the
Trustee for the proceeds.  
	   
	
12.6  	   	
Existing Rights: Termination shall not affect rights and obligations then
outstanding under this Agreement which shall continue to be governed by this
Agreement until all obligations have been fully performed.  
	   
	
13. NOTICES  
	   
	
13.1  	   	
Transfer Notices: Any Transfer Notice shall be in writing in English and shall
be marked “Urgent – This Requires Immediate Attention” and signed (unless
sent via [ ]) by or on behalf of the party giving it (or its duly Authorized
representative). Any Transfer Notice shall be sent either by facsimile or via [ ]
or such other authenticated method as may, from time to time, be agreed
between the parties. Any Transfer Notice shall be deemed to have been given,
made or served upon actual receipt by the recipient.  
	   
	
13.2  	   	
General Notices: Any General Notice shall be in writing in English and shall
be marked “Urgent – This Requires Immediate Attention” and shall be signed
by or on behalf of the party giving it (or its duly Authorized representative).
Any General Notice shall be given, made or served by sending the same by
pre-paid registered post (first class if inland, first class airmail if overseas) or
facsimile transmission. Any General Notice sent by pre-paid registered post
shall be deemed to have been received three London/Zurich Business Days in
the case of inland post or seven London/Zurich Business Days in the case of
overseas post after dispatch. Any General Notice sent by facsimile shall be
deemed to have been given, made or served upon actual receipt by the
recipient.  
	   
	
13.3  	   	
The addresses and numbers of the parties for the purposes of clauses 13.1 and
13.2 are:  
	   

	   	   	
The Custodian:  	   	
JPMorgan Chase Bank, N.A.  
	   	   	   	   	
125 London Wall, London EC2Y 5AJ  
	   	   	   	   	
Attention: Peter Smith – Global Commodities  
	   	   	   	   	
Facsimile No. +44 207 777 4915  

16

	 	 	The Trustee:	 
	   	   	 	
The Bank of New York
Mellon  
	   	   	 	
2 Hanson Place  
	   	   	 	
Brooklyn, New York
11217  
	 	 	 	 
	 	 	 	Attention: Donald Guire
	 	 	 	Facsimile: 718-315-4927
	   
	   
	   	   	The Sponsor:	 
	 	 	 	ETF Securities USA LLC
	   	   	 	
c/o ETF Securities
Representative Office  
	   	   	 	
6th Floor  
	 	 	 	2 London Wall Buildings
	   	   	 	
London EC2M
5UU  
	   	   	 	
Telephone:
+442074404330  
	   	   	 	
Attention: US Fund
Services  
	   
	   	   	
    or such other address or facsimile number as shall have been notified (in
    accordance with this clause) to the other party hereto.  
	   
	
  13.4  	   	
Recording of Calls: Each of the Custodian and the Trustee may record
telephone conversations without use of a warning tone. Such records will be
the recording party’s sole property and accepted by the other parties hereto as
evidence of the orders or instructions given.  
	   
	
  14. GENERAL  
	   
	
14.1  	   	
Role of Trustee: The Trustee is a party to this Agreement solely in its capacity
as Trustee for the Shareholders and accordingly (i) the Trustee shall only be
liable to satisfy any obligations under this Agreement, including any
obligations or liabilities arising in connection with any default by the Trustee
under this Agreement, to the extent of the assets held from time to time by the
Trustee as trustee of the trusts constituted by the Trust Agreement (the “Trust
Assets”) to the extent authorized by the Trust Agreement and (ii) no recourse
shall be had to (a) any assets other than the Trust Assets, including any of the
assets held by the Trustee as trustee, co-trustee or nominee of a trust other than
the trusts constituted by the Trust Agreement, as owner in its individual
capacity or in any way other than as trustee of the trusts constituted by the
Trust Agreement; or (b) the Trustee for any assets that have been distributed
by the Trustee to the beneficiaries of the trusts constituted by the Trust
Agreement.  
	   
	
  14.2  	   	
No Advice: The Custodian’s duties and obligations under this Agreement do
not include providing the other parties hereto with investment advice. In
asking the Custodian to open and maintain the Unallocated Account, the
Trustee acknowledges that it is acting in reliance on its own judgment and the
Custodian shall not owe the Trustee or the Trust any duty to exercise any
judgment on their behalf as to the merits or suitability of any deposits into, or
withdrawals from, the Unallocated Account.  

17

	
14.3  	   	
Rights and Remedies: The Custodian hereby waives any right it has or may
hereafter acquire to combine, consolidate or merge the Metal Accounts with
any other account of the Trust or the Trustee or to set off any liabilities of the
Trust or of the Trustee to the Custodian and agrees that it may not set off,
transfer or combine or withhold payment of any sum standing to the credit or
to be credited to the Metal Accounts in or towards or conditionally upon
satisfaction of any liabilities to it of the Trust or the Trustee. Subject thereto,
the Custodian’s rights under this Agreement are in addition to, and
independent of, any other rights which the Custodian may have at any time in
relation to the Bullion.  
	   
	
14.4  	   	
Assignment: This Agreement is for the benefit of and binding upon the parties
hereto and their respective successors and assigns. Save as expressly provided
herein, no party may assign, transfer or encumber, or purport to assign,
transfer or encumber any right or obligation under this Agreement unless the
other parties otherwise agree in writing except that consent is not required
where the Custodian assigns, transfers or encumbers any right or obligation
under this Agreement to an Affiliate. This clause shall not restrict the
Custodian’s power to merge or consolidate with any party, or to dispose of all
or part of its custody business and further provided that this clause shall not
restrict the Trustee from assigning its rights hereunder to a Shareholder to the
extent required for the Trust to fulfill its obligations under the Trust
Agreement.  
	   
	
14.5  	   	
Amendments: Any amendment to this Agreement must be agreed in writing
and be signed by all of the parties hereto. Unless otherwise agreed, an
amendment will not affect any legal rights or obligations which may already
have arisen.  
	   
	
14.6  	   	
Partial Invalidity: If any of the clauses (or part of a clause) of this Agreement
becomes invalid or unenforceable in any way under the Rules or any law, the
validity of the remaining clauses (or part of a clause) will not in any way be
affected or impaired.  
	   
	
14.7  	   	
Entire Agreement: This document represents the entire agreement between
the parties in respect of its subject matter, and excludes any prior agreements
or representations the save for any made with fraudulent intent.  
	   
	
14.8  	   	
Counterparts: This Agreement may be executed in any number of
counterparts each of which when executed and delivered is an original, but all
the counterparts together constitute the same agreement.  
	   
	
14.9  	   	
Business Days: If any obligation falls due to be performed on a day which is
not a New York Business Day or a London/Zurich Business Day, as the case
may be, then the relevant obligations shall be performed on the next
succeeding Business Day.  
	   
	
14.10  	   	
Prior Agreements: The Custodian, or any member of the JP Morgan group of
companies (the “JP Morgan Group”) may trade in Shares for its own account
as principal, may have underwritten or may underwrite an issue of Shares or,  

18

	   	   	
together with any such entities’ directors, officers or employees, may have a
long or short position in Shares or in any related security or instrument.
Brokerage or other fees may be earned by any member of the JP Morgan
Group or persons associated with them in respect of any business transacted by
them in all or any of the aforementioned securities or instruments. This
Agreement supersedes and replaces any prior existing agreement between the
parties hereto relating to the same subject matter.  
	   
	
15. GOVERNING LAW AND JURISDICTION  
	   
	
15.1  	   	
Governing Law: This Agreement is governed by, and will be construed in
accordance with, English law.  
	   
	
15.2  	   	
Jurisdiction: The Trustee and the Custodian agree that the courts of the State
of New York, in the United States of America, and the United States federal
court located in the Borough of Manhattan in such state are to have jurisdiction
to settle any disputes or claims which may arise out of or in connection with
this Agreement and, for these purposes the Trustee and the Custodian
irrevocably submits to the non-exclusive jurisdiction of such courts, waive any
claim of forum non conveniens and any objection to laying of venue, and
further waive any personal service.  
	   
	
15.4  	   	
Waiver of Immunity: To the extent that the Trustee may in any jurisdiction
claim for it as Trustee, the Trust or its assets any immunity from suit,
judgment, enforcement or otherwise howsoever, the Trustee agrees not to
claim and irrevocably waives any such immunity which it would otherwise be
entitled to (whether on grounds of sovereignty or otherwise) to the full extent
permitted by the laws of such jurisdiction.  
	   
	
15.5  	   	
Service of Process: Process by which any proceedings are begun may be
served on it by being delivered to the address specified below. This does not
affect any right to serve process in another manner permitted by law.  
	   
	   	   	
Custodian’s Address for service of process:  
	   
	   	   	
JPMorgan Chase Bank, N.A.  
	   	   	
125 London Wall, London EC2Y 5AJ  
	   	   	
Attention: Peter Smith – Global Commodities  
	   
	   	   	
With a copy to:  
	   
	   	   	
JPMorgan Chase Bank, N.A.  
	   	   	
125 London Wall, 13th Floor  
	   	   	
London EC2Y 5AJ  
	   	   	
Facsimile No.: +44 (0)20 7325 8150  
	   	   	
Attention: Legal Department-FX and Derivatives Group  

19

	 	
Trustee’s Address for service of process:  
	 	   
	 	
The Bank of New York Mellon  
	 	
One Wall Street  
	 	
New York, New York 10286  
	 	
Attention: Legal Department  

20

	
EXECUTED by the Parties:  
	 
	 
	
Signed on behalf of and for JPMORGAN CHASE BANK, N.A. by  
	 
	
Signature  	 	 
	 
	
Name  	 	 
	 
	
Title  	 	 

	
Signed on behalf of and for  
	
THE BANK OF NEW YORK MELLON, solely in its capacity
as trustee of the ETFS Gold Trust and not individually by  
	 
	Signature 	 	 
	 
	Name 	 	 
	 
	Title 	 	 

21The Depository Trust Company 

A subsidiary of the Depository Trust & Clearing Corporation

BLANKET ISSUER LETTER OF REPRESENTATIONS 

ETFS GOLD TRUST

_______________

(Date)

Attention: Underwriting Department

The Depository Trust Company 

55 Water Street, 1SL 

New York, NY 10041-0099 

Ladies and Gentlemen: 

          This letter sets forth our understanding with respect to all issues (the “Securities”) that Issuer shall request to be made eligible for deposit by the Depository Trust Company (“DTC”). 

Issuer is formed under the laws of the State of New York. 

          To induce DTC to accept the Securities as eligible for deposit at DTC, and to act in accordance with DTC’s Rules with respect to the Securities, Issuer represents to DTC that issuer will comply with the requirements stated
in DTC’s Operational Arrangements, as they may be amended from time to time. 

	
Note:    	    	
      Very truly yours,    
	
Schedule A contains statements that DTC believes    	    	 	   
	
accurate describe DTC, the method of effecting      	    	
      ETFS GOLD TRUST,    
	
book-entry transfers of securities distributed      	    	 	   
	
through DTC, and certain related matters.   	    	
      by ETF Securities USA LLC, as sponsor        
	     
	
Received and Accepted      	    	By:	 
	
THE DEPOSITORY TRUST COMPANY        	    	 	
(Authorized Officer’s Signature”) 
	     
	
By:        	 	    	 	  
	       	 	 	 	(Print Name)
	         	    	 	 
	       	 	 	 	(Street Address)
	         	    	 	 
	                                   	 	 	(City, State, Country, Zip)
	    	 	 
	 	 	(Phone Number)
	    	 	 
	    	 	
(Email Address)     
	 	 	 

SCHEDULE A

(To Blanket Issuer Letter of Representations) 

SAMPLE OFFERING DOCUMENT
LANGUAGE

DESCRIBING BOOK-ENTRY-ONLY ISSUANCE

(Prepared by DTC—bracketed material may be
applicable only to certain issues)

          1.
The Depository Trust Company (“DTC”), New York, NY, will act as securities
depository for the securities (the “Securities”). The Securities will be issued
as fully-registered securities registered in the name of Cede & Co. (DTC’s
partnership nominee) or such other name as may be requested by an authorized
representative of DTC. One fully-registered Security certificate will be issued
for [each issue of] the Securities, [each] in the aggregate principal amount of
such issue, and will be deposited with DTC. [If, however, the aggregate
principal amount of [any] issue exceeds $500 million, one certificate will be
issued with respect to each $500 million of principal amount, and an additional
certificate will be issued with respect to any remaining principal amount of
such issue.]

          2.
DTC, the world’s largest securities depository, is a limited-purpose trust
company organized under the New York Banking Law, a “banking organization”
within the meaning of the New York Banking Law, 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 Securities Exchange Act of 1934. DTC holds and provides
asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues,
corporate and municipal debt issues, and money market instruments (from over
100 countries) that DTC’s participants (“Direct Participants”) deposit with
DTC. DTC also facilitates the post-trade settlement among Direct Participants of
sales and other securities transactions in deposited securities, through
electronic computerized book-entry transfers and pledges between Direct
Participants’ accounts. This eliminates the need for physical movement of
securities certificates. Direct Participants include both U.S. and non-U.S.
securities brokers and dealers, banks, trust companies, clearing corporations,
and certain other organizations. DTC is a wholly-owned subsidiary of The
Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding
company for DTC, National Securities Clearing Corporation and Fixed Income
Clearing Corporation, all of which are registered clearing agencies. DTCC is
owned by the users of its regulated subsidiaries. Access to the DTC system is
also available to others such as both U.S. and non-U.S. securities brokers and
dealers, banks, trust companies, and clearing corporations that clear through
or maintain a custodial relationship with a Direct Participant, either directly
or indirectly (“Indirect Participants”). DTC has Standard & Poor’s highest
rating: AAA. The DTC Rules applicable to its Participants are on file with the
Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com
and www.dtc.org.

          3.
Purchases of Securities under the DTC system must be made by or through Direct
Participants, which will receive a credit for the Securities on DTC’s records.
The ownership interest of each actual purchaser of each Security (“Beneficial
Owner”) is in turn to be recorded on the Direct and Indirect Participants’
records. Beneficial Owners will not receive written confirmation from DTC of
their purchase. Beneficial Owners are, however, expected to receive written
confirmations providing details of the transaction, as well as periodic
statements of their holdings, from the Direct or Indirect Participant through
which the Beneficial Owner entered into the transaction. Transfers of ownership
interests in the Securities are to be accomplished by entries made on the books
of Direct and Indirect Participants acting on behalf of Beneficial Owners.
Beneficial Owners will not receive certificates representing their ownership
interests in Securities, except in the event that use of the book-entry system
for the Securities is discontinued.

          4.
To facilitate subsequent transfers, all Securities deposited by Direct
Participants with DTC are registered in the name of DTC’s partnership nominee,
Cede & Co., or such other name as may be requested by an authorized
representative of DTC. The deposit of Securities with DTC and their
registration in the name of Cede & Co. or such other DTC nominee do not
effect any change in beneficial ownership. DTC has no knowledge of the actual
Beneficial Owners of the Securities; DTC’s records reflect only the identity of
the Direct Participants to whose accounts such Securities are credited, which
may or may not be the Beneficial Owners. The Direct and Indirect Participants
will remain responsible for keeping account of their holdings on behalf of
their customers.

BLOR 03/25/08

SCHEDULE A

(To Blanket Issuer Letter of Representations) 

          5.
Conveyance of notices and other communications by DTC to Direct Participants,
by Direct Participants to Indirect Participants, and by Direct Participants and
Indirect Participants to Beneficial Owners will be governed by arrangements
among them, subject to any statutory or regulatory requirements as may be in
effect from time to time. [Beneficial Owners of Securities may wish to take
certain steps to augment the transmission to them of notices of significant
events with respect to the Securities, such as redemptions, tenders, defaults,
and proposed amendments to the Security documents. For example, Beneficial
Owners of Securities may wish to ascertain that the nominee holding the
Securities for their benefit has agreed to obtain and transmit notices to
Beneficial Owners. In the alternative, Beneficial Owners may wish to provide
their names and addresses to the registrar and request that copies of notices
be provided directly to them.]

          [6.
Redemption notices shall be sent to DTC. If less than all of the Securities
within an issue are being redeemed, DTC’s practice is to determine by lot the
amount of the interest of each Direct Participant in such issue to be
redeemed.]

          7.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote
with respect to Securities unless authorized by a Direct Participant in
accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an
Omnibus Proxy to Issuer as soon as possible after the record date. The Omnibus
Proxy assigns Cede & Co.’s consenting or voting rights to those Direct
Participants to whose accounts Securities are credited on the record date
(identified in a listing attached to the Omnibus Proxy).

          8.
Redemption proceeds, distributions, and dividend payments on the Securities
will be made to Cede & Co., or such other nominee as may be requested by an
authorized representative of DTC. DTC’s practice is to credit Direct
Participants’ accounts upon DTC’s receipt of funds and corresponding detail
information from Issuer or Agent, on payable date in accordance with their
respective holdings shown on DTC’s records. Payments by Participants to
Beneficial Owners will be governed by standing instructions and customary
practices, as is the case with securities held for the accounts of customers in
bearer form or registered in “street name,” and will be the responsibility of
such Participant and not of DTC, Agent, or Issuer, subject to any statutory or
regulatory requirements as may be in effect from time to time. Payment of
redemption proceeds, distributions, and dividend payments to Cede & Co. (or
such other nominee as may be requested by an authorized representative of DTC)
is the responsibility of Issuer or Agent, disbursement of such payments to
Direct Participants will be the responsibility of DTC, and disbursement of such
payments to the Beneficial Owners will be the responsibility of Direct and
Indirect Participants.

          
[9. A Beneficial Owner shall give notice to elect to have its Securities
purchased or tendered, through its Participant, to [Tender/Remarketing] Agent,
and shall effect delivery of such Securities by causing the Direct Participant
to transfer the Participant’s interest in the Securities, on DTC’s records, to
[Tender/Remarketing] Agent. The requirement for physical delivery of Securities
in connection with an optional tender or a mandatory purchase will be deemed
satisfied when the ownership rights in the Securities are transferred by Direct
Participants on DTC’s records and followed by a book-entry credit of tendered
Securities to [Tender/Remarketing] Agent’s DTC account.]

          10.
DTC may discontinue providing its services as depository with respect to the
Securities at any time by giving reasonable notice to Issuer or Agent. Under
such circumstances, in the event that a successor depository is not obtained,
Security certificates are required to be printed and delivered.

          11.
Issuer may decide to discontinue use of the system of book-entry-only transfers
through DTC (or a successor securities depository). In that event, Security
certificates will be printed and delivered to DTC.

          12. The information in this section
concerning DTC and DTC’s book-entry system has been obtained from sources that
Issuer believes to be reliable, but Issuer takes no responsibility for the
accuracy thereof.

BLOR 03/25/08

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]