Document:

Exhibit 4.2

AUTHORIZED PARTICIPANT AGREEMENT

          AUTHORIZED
PARTICIPANT AGREEMENT (this “Agreement”) dated as of [DATE] among (i)
[AUTHORIZED PARTICIPANT], a [company] organized under the laws of [JURISDICTION
OF AP] (the “Authorized Participant”), (ii) The Bank of New York Mellon, a New
York Banking corporation acting in its capacity as trustee (in such capacity,
the “Trustee”) of the Trust(s) listed on the attached Schedule A, which is a
part of this Agreement (each a “Trust” and collectively, the “Trusts”), each
Trust created under New York law pursuant to its respective Depositary Trust
Agreement identified on the attached Schedule A (each a “Trust Agreement” and
collectively, the “Trust Agreements”), and (iii) ETF Securities USA LLC, in its
capacity as sponsor of each Trust (in such capacity, the “Sponsor”).  

R E C I T A L S

          A.
Pursuant to the provisions of the applicable Trust Agreements, each Trust may
from time to time issue or redeem equity securities representing an interest in
the assets of such Trust (“Shares”), in each case only in aggregate amounts as
set out in Schedule A (such aggregate amount, a “Basket”), and integral
multiples thereof, and only in transactions with a party who, at the time of
the transaction, shall have signed and in effect an Authorized Participant
Agreement with such Trust.  

          B.
[AUTHORIZED PARTICIPANT] has requested to become an “Authorized Participant”
with respect to each Trust (as such term is defined in the applicable Trust
Agreement), and the Sponsor and the Trustee have agreed to such request. 

          NOW,
THEREFORE, in consideration of the foregoing premises, and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the
parties, hereto, intending to be legally bound, agree as follows: 

          Section
1. Procedures. The Authorized Participant will purchase or redeem
Baskets of Shares of the relevant Trust in compliance with the relevant Trust
Agreement as supplemented by the Creation and Redemption Procedures attached to
this Agreement as Schedule 1 (such procedures, as the same may be amended or
modified from time to time in compliance with the provisions hereof and
thereof, the “Procedures”), using
either (i) the form attached thereto as Annex I (a “Purchase Order”, in the
case of an order to purchase one or more Baskets of Shares issued by a
specified Trust and a “Redemption Order”,
in case of an order to redeem one or more Baskets of Shares issued by a
specified Trust) or (ii) through the Trustee’s electronic order entry system,
as such may be made available and constituted from time to time, the use of
which shall be subject to the terms and conditions attached thereto as Annex
II. All Purchase Orders and Redemption Orders (collectively, “Orders”) shall be placed and executed in
accordance with the relevant Trust Agreement as supplemented by the Procedures.
Capitalized terms used in this Agreement and not otherwise defined herein have
the meaning ascribed to them in the Procedures.  

          Section
2. Incorporation of Standard Terms. The Standard Terms attached hereto
as Schedule 2 are hereby incorporated by reference into, and made a part of,
this Agreement. 

          Section
3. Conflicts Rules. In case of any inconsistency between the provisions
of this Agreement and an applicable Trust Agreement, the provisions of such
Trust Agreement shall control. In case of inconsistency between the provisions
incorporated by reference into this Agreement pursuant to Section 2 above and
any other provision of this Agreement, the latter will control. 

          
Section 4. Authorized Representatives. Pursuant to Section 2.01 of the
Standard Terms, attached hereto as Schedule 3-A is a certificate listing the
Authorized Representatives of the Authorized Participant. 

          Section
5. Additional Covenants. The Authorized Participant covenants and
agrees: 

          (a)
To use its best efforts to ensure that any Delivery of applicable Bullion to
the Custodian, or any withdrawal of applicable Bullion from the appropriate
Trust, in connection with a Purchase Order or Redemption Order placed by the
Authorized Participant will take place only through one or more members of the
London Bullion Market Association and/or the London Platinum and Palladium
Market as appropriate under the terms of the applicable Trust Agreement. 

          (b)
Promptly upon written demand therefore (accompanied by such reasonable evidence
as the Authorized Participant may request), to reimburse the relevant Trust or
the Custodian the amount of any taxes (including value added taxes) that may be
imposed on the relevant Trust or the Custodian in connection with any Delivery
of Bullion by or on behalf of the Authorized Participant to the Custodian (in
the case of a Purchase Order placed by the Authorized Participant), or any
Delivery of Bullion to or for the account of the Authorized Participant (in the
case of a Redemption Order placed by the Authorized Participant). 

          Section
6. Notices. Except as otherwise specifically provided in the Procedures, all
notices required or permitted to be given pursuant hereto shall be given in
writing and delivered by personal delivery or by postage prepaid registered or
certified United States first class mail, return receipt requested, or by telex
or facsimile (with a confirming copy by mail) addressed as follows:  

          (i)
If to the Trustee: 

          The
Bank of New York Mellon

          2 Hanson Place —
Floor 9th

          Brooklyn, NY 11217

          Attn: Jarvis Joseph

          Telephone: (718)
315-7500

          Facsimile: (732)
667-9478

          E-Mail:
jarvis.joseph@bnymellon.com 

          (ii)
If to the Sponsor: 

          ETF
Securities USA LLC

          c/o ETF Securities
Limited

          Ordnance House 

          31 Pier Road

          Jersey

          JE4 8PW 

2

          Channel
Islands 

          Attn: Legal and
Compliance

          Telephone: +44 1543
825 200

          Facsimile: [to be
provided]

          E-Mail:
legal.compliance@etfsl.com 

          (iii)
If to the Authorized Participant: 

          [AUTHORIZED
PARTICIPANT]

          Attn:

          [AP’S ADDRESS]

          Telephone:

          Facsimile:

          Telex: 

or such other address as any
of the parties hereto shall have communicated in writing to the remaining parties
in compliance with the provisions hereof. 

          Section
7. Effectiveness, Termination and Amendment. This Agreement shall become
effective upon execution and delivery by each of the parties hereto. This
Agreement may be terminated at any time by any party upon sixty days prior
written notice to the other parties and may be terminated earlier by the
Trustee or the Sponsor at any time on the event of a breach by the Authorized
Participant of any provision of this Agreement (including the Standard Terms
incorporated by Section 2 hereof) or the Procedures. This Agreement, along with
any other agreement or instrument delivered pursuant to this Agreement,
supersedes any prior agreement between or among the parties concerning the
matters governed hereby. This Agreement may be amended by the Trustee and the
Sponsor from time to time without the consent of the Authorized Participant or
any Beneficial Owner by the following procedure: the Trustee or the Sponsor
will mail a copy of the amendment to the Authorized Participant in compliance
with the notice provisions of this Agreement; if the Authorized Participant
does not object in writing to the amendment within fifteen (15) Business Days
after receipt of the proposed amendment, the amendment will become part of this
Agreement in accordance with its terms. Titles and section headings in this
Agreement (and in the Standard Terms incorporated by Section 2 hereof and the
Procedures) are included solely for convenient reference and are not a part of
this Agreement. 

          Section
8. Governing Law. This Agreement and all the transactions hereunder
shall be governed by and interpreted in accordance with the laws of the State
of New York (regardless of the laws that might otherwise govern under
applicable New York conflict law principles) as to all matters including
matters of validity, construction, effect, performance and remedies. The
parties irrevocably submit to the non-exclusive jurisdiction of any New York
State or United States Federal court sitting in New York City over any suit,
action or proceeding arising out of, or relating to, this Agreement. 

          Section
9. Assignment. No party to this Agreement shall assign any rights, or
delegate the performance of any obligations, arising hereunder without the
prior written consent of the other parties hereto, which shall not be
unreasonably withheld; provided, that any entity into which a party hereto may
be merged or converted, or with which it may be consolidated, or any entity
resulting from any merger, consolidation or conversion to which a party
hereunder shall be a party, shall be the successor 

3

of such party hereto. The
party resulting from any such merger, conversion, consolidation or succession
shall promptly notify the other parties hereto of the change. Any purported
assignment or delegation in violation of these provisions shall be null and
void. Notwithstanding the foregoing, any successor Trustee appointed in
compliance with the applicable Trust Agreement shall automatically become a
party hereto and shall assume all the obligations, and be entitled to all the
rights and remedies of the Trustee hereunder with respect to the applicable
Trust. 

          Section
10. No Strict Construction. The language used in this Agreement will be
deemed to be the language chosen by the parties to express their mutual intent,
and no rule of strict construction will be applied against any party. 

          Section
11. Counterparts. This Agreement may be executed in several
counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument. 

[Signatures Follow on Next Page]

4

          IN WITNESS WHEREOF, the parties hereto have executed this Authorized Participant Agreement
as of the date set forth above. 

THE BANK OF NEW YORK MELLON, in its capacity as

Trustee of the Trusts listed on Schedule A hereto

	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
 Name:

 	
  

 
	
 Title:

 	
  

 
	
 Date:

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	
 ETF
 SECURITIES USA LLC,
 in its capacity as

 Sponsor of the Trusts listed on Schedule A hereto

 
	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
 Name:

 	
  

 
	
 Title:

 	
  

 
	
 Date:

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	
  [AUTHORIZED PARTICIPANT]

 	
  

 
	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
 Name:

 	
  

 
	
 Title:

 	
  

 
	
 Date:

 	
  

 
				

5

SCHEDULE A – APPLICABLE TRUSTS

	
 

	
 

	
•

	
ETFS Silver
Trust, a trust created under New York law pursuant to that certain Depositary
Trust Agreement between the Trustee and the Sponsor, as may be amended from
time to time. 

	
 

	
 

	
•

	
ETFS Gold
Trust, a trust created under New York law pursuant to that certain Depositary
Trust Agreement between the Trustee and the Sponsor, as may be amended from
time to time. 

	
 

	
 

	
•

	
ETFS
Platinum Trust, a trust created under New York law pursuant to that certain
Depositary Trust Agreement between the Trustee and the Sponsor, as may be
amended from time to time. 

	
 

	
 

	
•

	
ETFS
Palladium Trust, a trust created under New York law pursuant to that certain
Depositary Trust Agreement between the Trustee and the Sponsor, as may be
amended from time to time. 

	
 

	
 

	
•

	
ETFS
Precious Metals Basket Trust, a trust created under New York law pursuant to
that certain Depositary Trust Agreement between the Trustee and the Sponsor,
as may be amended from time to time. 

	
 

	
 

	
•

	
ETFS White
Metals Basket Trust, a trust created under New York law pursuant to that
certain Depositary Trust Agreement between the Trustee and the Sponsor, as
may be amended from time to time. 

DELIVERY LOCATIONS, BASKET SIZES

AND BULLION OUNCES PER SHARE

Description of
Delivery and Basket Sizes: 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Delivery
of Bullion

	
 

	
Shares Per Basket

	
 

	
Oz. per Share at Inception

	
 

	
 

	

	
 

	

	
 

	

	
ETFS Physical Silver
Shares

	
 

	
Loco-London

	
 

	
100,000

	
 

	
 

	
1.0
(Silver)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
ETFS Physical Swiss Gold
Shares

	
 

	
Loco-Zurich/London

	
 

	
50,000

	
 

	
 

	
0.1
(Gold)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
ETFS Physical Platinum
Shares

	
 

	
Loco-Zurich/London

	
 

	
50,000

	
 

	
 

	
0.1
(Platinum)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
ETFS Physical Palladium
Shares

	
 

	
Loco-Zurich/London

	
 

	
50,000

	
 

	
 

	
0.1
(Palladium)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
ETFS Physical PM Basket
Shares

	
 

	
Loco-London

	
 

	
50,000

	
 

	
 

	
0.03
(Gold) & 1.1 (Silver);

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Loco-Zurich/London

	
 

	
 

	
 

	
 

	
0.004
(Platinum) & 0.006 (Palladium)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
ETFS Physical WM Basket
Shares

	
 

	
Loco-London

	
 

	
50,000

	
 

	
 

	
[0.0] (Silver);

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Loco-Zurich/London

	
 

	
 

	
 

	
 

	
[0.0]
(Platinum) & [0.0] (Palladium)

6

SCHEDULE 1- CREATION AND REDEMPTION
PROCEDURES

7

TABLE OF CONTENTS - SCHEDULE 1

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	
 

	
 

	
 

	

	
ARTICLE I
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

	
 

	
 

	
 

	
Section 1.01

	
 

	
Definitions

	
 

	
2

	
 

	
Section 1.02

	
 

	
Interpretation

	
 

	
6

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE II
CREATION PROCEDURES

	
 

	
 

	
 

	
Section 2.01

	
 

	
Initial
Creation of Shares

	
 

	
7

	
 

	
Section 2.02

	
 

	
Subsequent
Creation of Shares

	
 

	
7

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE III
REDEMPTION PROCEDURES

	
 

	
 

	
 

	
Section 3.01

	
 

	
Redemption
of Shares

	
 

	
9

	
 

	
 

	
 

	
 

	
 

	
 

	
ANNEX I TO
CREATION AND REDEMPTION PROCEDURES

	
 

	
 

	
 

	
Creation/Redemption
Order Form

	
 

	
14

	
 

	
 

	
 

	
 

	
 

	
 

	
ANNEX II TO
CREATION AND REDEMPTION PROCEDURES

	
 

	
 

	
 

	
Order Entry
System Terms and Conditions

	
 

	
16

S1-1

SECOND AMENDED AND RESTATED

CREATION AND REDEMPTION PROCEDURES

          Adopted
by the Sponsor and Trustee (each as defined below) as of _________, 2010 

ARTICLE I

DEFINITIONS AND OTHER PROVISIONS OF GENERAL
APPLICATION

          Section
1.01. Definitions. For purposes of these Procedures, and the Standard
Terms incorporated by reference into the Authorized Participant Agreement to
which these Procedures are attached, unless the context otherwise requires, the
following terms will have the following meanings: 

“1933 Act”
means the U.S. Securities Act of 1933, as amended. 

“Affiliate” shall have the meaning given
to it by Rule 501(b) under the 1933 Act. 

“AP Indemnified Party” shall have the meaning ascribed to such term in Section 6.01.a of the Standard
Terms. 

“Authorized Participant” shall have the meaning
ascribed to the term in the introductory paragraph of the Authorized
Participant Agreement. 

“Authorized Participant Agreement” shall mean each Authorized Participant Agreement among the Authorized
Participant, the Trustee and the Sponsor into which these Creation and
Redemption Procedures are attached as Schedule 1 and the Standard Terms and
Conditions attached as Schedule 2 shall have been incorporated by reference. 

“Authorized Participant Client” means any party on whose behalf the Authorized Participant acts in connection
with an Order (whether a customer or otherwise). 

“Authorized Representative” shall mean, with respect to an Authorized Participant, each individual who,
pursuant to the provisions of the Authorized Participant Agreement between such
Authorized Participant, the Sponsor, and the Trustee, has the power and
authority to act on behalf of the Authorized Participant in connection with the
placement of Purchase Orders or Redemption Orders and is in possession of the
personal identification number (PIN) assigned by the Trustee for use in any
communications regarding Purchase or Redemption Orders on behalf of such
Authorized Participant. 

“Basket” shall have the meaning ascribed to the term in Section 1.1 of the relevant
Trust Agreement. 

“Basket Amount” shall mean the specific basket amount term defined in Section 1.1 of the relevant
Trust Agreement (e.g., the “Basket Silver Amount” in the case of the ETFS
Silver Trust; 

S1-2

the “Basket Gold Amount” in the case of the ETFS Gold Trust; the “Basket Platinum Amount”
in the case of the ETFS Platinum Trust; the “Basket Palladium Amount” in the
case of the ETFS Palladium Trust; and the “Basket Bullion Amount” in the case
of the ETFS Precious Metals Basket Trust and the ETFS White Metals Basket
Trust). 

“Benchmark Price” shall have the meaning ascribed to the term in Section 1.1 of the relevant
Trust Agreement. 

“Beneficial Owner” shall have the meaning given to it by Rule 16a-1(a)(2) of the Securities
Exchange Act of 1934. 

“Bullion” shall mean Silver, Gold,
Platinum and/or Palladium as appropriate. 

“Business Day” shall mean, if and as applicable, (i) each day the exchange on which the
relevant Shares trade is open for regular trading, and/or (ii) a London
Business Day, and/or (iii) a Zurich Business Day. 

“Creation” means the process that
begins when an Authorized Participant first indicates to the Trustee its
intention to purchase one or more Baskets of a specified Trust pursuant to
these Procedures and concludes with the issuance by the Trustee and Delivery to
such Authorized Participant of the corresponding number of that Trust’s Shares.

“Creation and Redemption Line” shall mean a telephone
number designated as such by the Trustee and specified in Annex I of the
Procedures or otherwise communicated to each Authorized Participant in
compliance with the notice provisions of the respective Authorized Participant
Agreement. 

“Custodial Allocated Account” shall mean the allocated bullion account established by the Trustee with the
Custodian pursuant to the relevant Custodian Agreement. 

“Custodial Unallocated Account” shall mean the unallocated bullion account established by the Trustee with the
Custodian pursuant to the relevant Custodian Agreement. 

“Custodian” shall mean, with respect to
the ETFS Silver Trust, HSBC Bank USA National Association, London Branch and,
with respect to the ETFS Gold Trust, the ETFS Platinum Trust, the ETFS
Palladium Trust, the ETFS Precious Metals Basket Trust and the ETFS White
Metals Basket Trust, JPMorgan Chase Bank, N.A., each in their capacity as
custodian under the Custodian Agreements and any successor thereto or
additional or other custodian appointed in compliance with the provisions of
the relevant Trust Agreements and relevant Custodian Agreement(s). 

“Custodian Agreement” or “Custodian Agreements” shall mean the applicable Custodian Agreement by and
between the Trustee and the Custodian with respect to the applicable Trust. 

“Delivery” shall mean a delivery of Bullion or Shares, as applicable, in each case
effected according to the definition of “Deliver” in Section 1.1 of the
relevant Trust Agreement. 

S1-3

“Depositor” shall mean any Authorized Participant that deposits Bullion into the relevant
Trust, either for its own account or on behalf of another Person that is the
owner or beneficial owner of that Bullion. 

“Deposit Property” means property which, in
compliance with the provisions of the relevant Trust Agreement, must be
transferred by the Authorized Participant to the relevant Trust in exchange for
that Trust’s Shares. 

“DTC” shall mean The Depository
Trust Company, its nominees and their respective successors. 

“FINRA” means the Financial Industry Regulatory Authority. 

“Gold” shall have the meaning ascribed to the term in Section 1.1 of the Trust Agreement of
the ETFS Gold Trust and the ETFS Precious Metals Basket Trust, as applicable,
relating to gold. 

“Initial Creation” shall mean the initial creation of Shares pursuant to the provisions of Section
2.01 hereof. 

“LBMA” shall mean the London
Bullion Market Association. 

“London Business Day” shall mean a day (other than a Saturday, Sunday or a public holiday in England)
on which commercial banks generally and the over-the-counter markets in silver,
with respect to ETFS Silver Trust, the ETFS Precious Metals Basket Trust and
the ETFS White Metals Basket Trust, and gold, with respect to the ETFS Gold
Trust and the ETFS Precious Metals Basket Trust, each as coordinated by the
LBMA, and in platinum, with respect to the ETFS Platinum Trust, the ETFS
Precious Metals Basket Trust and the ETFS White Metals Basket Trust, and
palladium, with respect to the ETFS Palladium Trust, the ETFS Precious Metals
Basket Trust and the ETFS White Metals Basket Trust, each as coordinated by the
LPPM, are open for the transaction of business in London. 

“LPPM” shall mean the London
Platinum and Palladium Market. 

“Order” shall have the meaning
ascribed to it in Section 1 of the Authorized Participant Agreement. 

“Order Cutoff Time” shall have the meaning
ascribed to the term in Section 1.1 of the relevant Trust Agreement. 

“Order Date” shall have, (i) with respect
to a Purchase Order, the meaning ascribed to the term in Section 2.3(a) of the
relevant Trust Agreement; and (ii) with respect to a Redemption Order, the
meaning ascribed to the term in Section 2.6(a) of the relevant Trust Agreement.

“Ounce” shall have the meaning ascribed to the term in Section 1.1 of the relevant
Trust Agreement. 

S1-4

“Palladium” shall have the meaning ascribed to the term in Section 1.1 of the Trust
Agreement of the ETFS Palladium Trust, the ETFS Precious Metals Basket Trust
and the ETFS White Metals Trust, as applicable, relating to palladium. 

“Person” shall mean any natural
person or any limited liability company, corporation, partnership, joint
venture, association, joint stock company, trust, unincorporated organization
or government or any agency or political subdivision thereof. 

“Platinum” shall have the meaning ascribed to the term in Section 1.1 of the Trust
Agreement of the ETFS Platinum Trust, the ETFS Precious Metals Basket Trust and
the ETFS White Metals Trust, as applicable, relating to platinum. 

“Procedures” shall have the meaning ascribed to it in Section 1 of the Authorized
Participant Agreement. 

“Prospectus” or “Prospectuses” means the current prospectus of the relevant Trust included in its effective
registration statement, as supplemented or amended from time to time. 

“Purchase Order” shall have the meaning ascribed to it in Section 1 of the Authorized
Participant Agreement. 

“Redemption Order” shall have the meaning ascribed to it in Section 1 of the Authorized Participant
Agreement. 

“Shares” means Shares issued by the relevant Trust pursuant to the provisions of the
relevant Trust Agreement. 

“Silver” shall have the meaning ascribed to the term in Section 1.1 of the Trust
Agreement of the ETFS Silver Trust, the ETFS Precious Metals Basket Trust and
the ETFS White Metals Trust, as applicable, relating to silver. 

“Sponsor” shall mean ETF Securities USA LLC, a Delaware limited liability company. 

“Sponsor Indemnified Party” shall have the meaning ascribed to such term in Section 6.01.b of the Standard
Terms. 

“Trustee” shall mean The Bank of New
York Mellon, a New York banking corporation, in its capacity as Trustee under
each Trust Agreement, and any successor thereto in compliance with the
provisions thereof. 

“Trust” or “Trusts” shall have the meanings ascribed to them in the introductory paragraph of the
Authorized Participant Agreement. 

“Trust Agreement” or “Trust Agreements” shall have the meanings ascribed to them in the introductory paragraph of the
Authorized Participant Agreement. 

S1-5

“Unallocated Basis” shall have the meaning ascribed to the term in Section 1.1 of the relevant
Trust Agreement. 

“VAT” shall mean (a) any tax
imposed pursuant to or in compliance with the Sixth Directive of the Council of
the European Economic Communities (77/388/EEC) including, in relation to the
United Kingdom, value added tax imposed by the Value Added Tax Act 1994 and
legislation and regulations supplemental thereto; and (b) any other tax of a
similar nature, whether imposed in a member state of the European Union or
elsewhere, in substitution for, or levied in addition to, such tax referred to
in “(a)”. 

“Zurich Business Day” shall mean a day (other than
a Saturday, Sunday or a public holiday in Switzerland) on which commercial
banks generally and the over-the-counter markets in gold, with respect to the
ETFS Gold Trust, platinum, with respect to the ETFS Platinum Trust, the ETFS
Precious Metals Basket Trust and the ETFS White Metals Basket Trust, and
palladium, with respect to the ETFS Palladium Trust, the ETFS Precious Metals
Basket Trust and the ETFS White Metals Basket Trust, are open for the
transaction of business in Zurich. 

          Section
1.02. Interpretation. In these Procedures: 

          Unless
otherwise indicated, all references to Sections, clauses, paragraphs, schedules
or exhibits, are to Sections, clauses, paragraphs, schedules or exhibits in or
to these Procedures. 

          To
the extent that term(s) defined in Section 1.01 apply to a Trust that has not
commenced operations as of any relevant date and such Trust is listed or to be
listed on Schedule A of the Authorized Participant Agreement, such term(s)
shall not be operative and any provisions relating to such a Trust and its
Shares contained in the Authorized Participant Agreement shall have no effect
until such Trust commences operations and its Trust Agreement and applicable
Custodian Agreement have been executed and delivered whereupon such terms and
provisions shall become automatically operative and effective without any
further action by the parties to the Authorized Participant Agreement. 

          The
words “hereof”, “herein”, “hereunder” and words of similar import shall refer
to these Procedures as a whole, and not to any individual provision in which
such words may appear. 

          A
reference to any statute, law, decree, rule, regulation or other applicable
norm shall be construed as a reference to such statute, law, decree, rule,
regulation or other applicable norm as re-enacted, re-designated or amended
from time to time. 

          A
reference to any agreement, instrument or document shall be construed as a
reference to such agreement, instrument or document as the same may have been
amended from time to time in compliance with the provisions thereof. 

S1-6

ARTICLE II

CREATION PROCEDURES

          Section
2.01. Initial Creation of Shares. The initial creation of Shares of a
Trust will take place in compliance with such procedures as the Trustee, the
Sponsor and the initial Depositor may agree. 

          Section
2.02. Subsequent Creation of Shares. After the Initial Creation, the
issuance and Delivery of Shares of a specified Trust shall take place only in
integral numbers of Baskets in compliance with the following rules: 

          a.
Authorized Participants wishing to acquire from the Trustee one or more Baskets
shall place a Purchase Order with the Trustee no later than 3:59:59 p.m. (New
York time) on any Business Day. Purchase Orders received by the Trustee on or
after the Order Cutoff Time on a Business Day shall be considered received at
the opening of business on the next Business Day and shall have as their Order
Date such next Business Day.

          b.
For purposes of Section 2.02a. above, a Purchase Order shall be deemed
“received” by the Trustee only when either of the following has occurred no
later than 3:59:59 p.m. (New York time): 

	
  

 	
  

 
	
  

 	
     (i)
Telephone/fax Order – An Authorized Representative shall have placed a
telephone call to the Trustee’s Creation and Redemption Line and has received
an Order Number from the Trustee for insertion in the Purchase Order, or 

 
	
  

 
	
  

 	
     (ii)
Web-based Order – An Authorized Representative shall have accessed the
Trustee’s online services (www.etfservices.bankofny.com) 

 

in either case
informing the Trustee that the Authorized Participant wishes to place a
Purchase Order for a specified number of Baskets and, in the case of a
telephone order, within 15 minutes following such telephone call the Trustee
shall have received a properly completed, irrevocable Purchase Order in the
form set out in Annex I to these Procedures executed by an Authorized
Representative of such Authorized Participant, via facsimile at the number
specified in such Annex I. 

          c.
The Trustee shall provide a written summary to the Sponsor and the Custodian of
all accepted Purchase Orders for such Order Date no later than 5:30 p.m. (New
York time). 

          d.
As soon as reasonably practicable following receipt of a properly completed
Purchase Order but not later than 5:30 p.m. (New York time) on the Order Date
for such Purchase Order, the Trustee shall send to the Authorized Participant
(with copy to the Custodian), via facsimile or electronic mail message, a copy
of the corresponding Purchase Order endorsed “Accepted” by the Trustee and
indicating the Basket Amount that the Authorized Participant shall Deliver to
the Custodian in respect of each Basket. Prior to the transmission of the
Trustee’s acceptance as specified above, a Purchase Order will only represent
the Authorized 

S1-7

Participant’s
unilateral offer to deposit Bullion in exchange for Baskets of Shares and will
have no binding effect upon the Trust or any other party. Following the
transmission of the Trustee’s acceptance as specified above, a Purchase Order
will be a binding agreement among the Trust and the Authorized Participant for
the creation and purchase of Baskets of Shares and the deposit of Bullion
pursuant to the terms of the Purchase Order and these Procedures. If a Purchase
Order is rejected, the Trustee shall send to the Authorized Participant (with
copy to the Custodian), via facsimile or electronic mail message, as soon as
reasonably practicable, but not later than 5:30 p.m. (New York time) on the
Order Date for such Purchase Order, a copy of the corresponding Purchase Order
endorsed “Declined” by the Trustee and indicating the reason. The preceding
sentence notwithstanding, Purchase Orders not accepted by 5:30 p.m. (New York
time) on the Order Date shall be deemed cancelled. A Purchase Order which is
not properly completed will be deemed invalid and rejected by the Trustee; the
Authorized Participant may submit a corrected Purchase Order within the time
period specified in Section 1.09 of the Standard Terms. 

          e.
Each Purchase Order shall settle on the third Business Day following the Order
Date. The Basket Amount corresponding to each Basket must be deposited in the
Custodial Unallocated Account in unallocated Bullion (i) loco London with
respect to Silver for the ETFS Silver Trust, the ETFS Precious Metals Basket
Trust and the ETFS White Metals Basket Trust, (ii) loco London with respect to
Gold for the ETFS Precious Metals Basket Trust, (iii) loco Zurich or loco
London with respect to Gold for the ETFS Gold Trust, and (iv) loco Zurich or
loco London with respect to Platinum and Palladium for the ETFS Platinum Trust,
the ETFS Palladium Trust, the ETFS Precious Metals Basket Trust and the ETFS
White Metals Basket Trust, no later than 11:00 a.m. (London time) on the third
Business Day following the Order Date. With respect to Gold for the ETFS Gold
Trust and where the Authorized Participant elects loco London, the Authorized
Participant must first agree to the cost of the loco swap with the Custodian
and reimburse the Custodian for any amount owed under such swap. 

          f.
The Custodian shall advise the Trustee in writing of the deposits made to the
Custodial Allocated Account in connection with each Purchase Order. Upon
receipt of such advice, the Trustee shall determine whether a deposit of
Bullion required to be made pursuant to Section 2.02e. has not been noted as
deposited in the Trustee’s Custodial Unallocated Account. In such event, the
Trustee shall, by the Trustee’s close of business on the second Business Day
following the Order Date, (i) send to the Custodian, via electronic mail
message, a request that the Custodian confirm that the Custodian did not
receive the anticipated deposit of Bullion, and (ii) send to the Authorized
Participant whose deposit was not received, via facsimile at the facsimile
number specified by the Authorized Participant in the Purchase Order, a
concurrent copy of such request. 

          g.
On the third Business Day following the Order Date corresponding to a Purchase
Order, or on such earlier date and time as the Trustee in its absolute
discretion may agree with the Authorized Participant, the Trustee shall issue
the aggregate number of Shares corresponding to the Baskets ordered by the
Authorized Participant and Deliver them, by credit to the account at DTC which
the Authorized Participant shall have identified for such purpose in its
Purchase Order, provided that, by 9:00 a.m. (New York time) on the date such
issuance and Delivery is to take place: 

S1-8

	
  

 	
  

 
	
  

 	
     (i)
the Custodian shall have reported in writing to the Trustee that the
corresponding required amount of Bullion has been deposited in the Trustee’s
Custodial Unallocated Account in compliance with the provisions of Section
2.02e. above and 

 
	
  

 
	
  

 	
     (ii)
the Authorized Participant shall have paid or agreed to pay the Trustee a per
order transaction fee in the amount of US$500, if applicable. 

 

          h.
In all other cases, the Trustee shall issue the aggregate number of Shares
corresponding to the Baskets ordered by the Authorized Participant and Deliver
them by credit to the account at DTC which the Authorized Participant shall
have identified for such purpose in its Purchase Order on the Business Day
following the date on which all of the conditions set forth in clauses (i) and
(ii) of Section 2.02g. above shall have been met. In the event that, by 11:00
a.m. (New York time) on the third Business Day following the Order Date of a
Purchase Order, the Trustee’s Custodial Unallocated Account shall not have been
credited with the required amount of Bullion in compliance with the provisions
of section 2.02e. above, the Trustee shall send to the Authorized Participant
and the Custodian via fax or electronic mail message notice of such fact and
the Authorized Participant shall have two (2) Business Days following receipt
of such notice to correct such failure. If such failure is not cured within
such two (2) Business Day period, the Trustee shall, unless the Sponsor shall
otherwise direct, cancel such Purchase Order and will send via fax or
electronic mail message notice of such cancellation to the Authorized
Participant and the Custodian, and the Authorized Participant will be solely
responsible for all costs incurred by the Trust, the Trustee or the Custodian
related to the cancelled Order.

          i.
The foregoing provisions notwithstanding, neither the Trustee nor the Custodian
shall be liable for any failure or delay in making Delivery of Shares in
respect of a Purchase Order arising from nuclear fission or fusion, radioactivity,
war, terrorist event, invasion, insurrection, civil commotion, riot, strike,
act of government, public authority, public service or utility problems, power
outages resulting in telephone, telecopy and computer failures, act of God such
as fires, floods, extreme weather conditions, market conditions or activities
causing trading halts, systems failures involving computer or other information
systems affecting a Trust, the Trustee, the Custodian or sub-custodian, metal
clearing bank delays and similar extraordinary events beyond the Trustee’s
control. In the event of any such delay, the time to complete Delivery in
respect of a Purchase Order will be extended for a period equal to that during
which the inability to perform continues. 

          j.
Except as provided in Sections 2.02d., 2.02f. and 2.02h., none of the Trustee,
the Sponsor, the Custodian, nor any sub-custodian are under any duty, to give
notification of any defects or irregularities in any Purchase Order or the
delivery of the Basket Amount, and shall not incur any liability for the
failure to give any such notification.

          k. Purchase Orders may be rejected under the circumstances specified in the applicable Prospectus.

ARTICLE III

REDEMPTION PROCEDURES

          Section
3.01. Redemption of Shares. Redemption of Shares of a specified Trust
shall take place only in integral numbers of Baskets in compliance with the
following rules: 

S1-9

          a.
Authorized Participants wishing to redeem one or more Baskets shall place a
Redemption Order with the Trustee no later than 3:59:59 p.m. (New York time) on
any Business Day. Redemption Orders received by the Trustee on or after the
Order Cutoff Time on any Business Day shall be considered received at the
opening of business on the next Business Day and shall have as their Order Date
such next Business Day. 

          b.
For purposes of Section 3.01a. above, a Redemption Order shall be deemed
“received” by the Trustee only when either of the following has occurred no
later than 3:59:59 p.m. (New York time): 

	
  

 	
  

 
	
  

 	
      
 (i) Telephone/fax Order – An Authorized Representative shall have placed a
 telephone call to the Trustee’s Creation and Redemption Line and has received
 an Order Number from the Trustee for insertion in the Redemption Order, or 

 
	
  

 	
  

 
	
  

 	
      
 (ii) Web-based Order – An Authorized Representative shall have accessed the
 Trustee’s online services (www.etfservices.bankofny.com) 

 

in either case
informing the Trustee that the Authorized Participant wishes to place a
Redemption Order for a specified number of Baskets and, in the case of a
telephone order, within 15 minutes following such telephone call the Trustee
shall have received a duly completed, irrevocable Redemption Order in the form
set out in Annex I to these Procedures executed by an Authorized Representative
of such Authorized Participant, via facsimile at the number specified in such Annex
I. 

          c.
Upon receipt of a properly completed Redemption Order, the Trustee shall send
to the Authorized Participant (with copy to the Custodian), via facsimile or
electronic mail message, as soon as reasonably practicable, but not later than
5:30 p.m. (New York time) on the Order Date for such Redemption Order a copy of
the corresponding Redemption Order endorsed “Accepted” by the Trustee and
indicating the Basket Amount that the Custodian shall Deliver to the Authorized
Participant in respect of each Basket being redeemed. 

          d.
The Trustee shall, by the Trustee’s close of business on the second Business
Day following the Order Date of a Redemption Order, confirm in writing to the
Custodian whether each of the following has occurred: 

	
  

 	
  

 
	
  

 	
      (i)
 the Authorized Participant has Delivered to the Trustee’s account at DTC the
 total number of Shares to be redeemed by such Authorized Participant pursuant
 to such Redemption Order; and 

 
	
  

 	
  

 
	
  

 	
      (ii)
 the Authorized Participant has paid or agreed to pay the Trustee a per order
 transaction fee of US$500, if applicable. 

 

Provided that
the Custodian has received written confirmation from the Trustee that the
conditions set forth in clauses (i) and (ii) of Section 3.01d. above have been
satisfied, the Custodian shall: 

S1-10

	
  

 	
  

 	
  

 
	
  

 	
 (1) on the
 next following Business Day, Deliver: 

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 unallocated
 Silver loco London; 

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
  unallocated Gold loco London (for the ETFS Precious Metals
 Basket Trust only); 

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 unallocated
 Gold loco Zurich (for the ETFS Gold Trust only); 

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 unallocated
 Platinum loco Zurich;

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 unallocated
 Platinum loco London; 

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 unallocated
 Palladium loco Zurich; and/or 

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 unallocated Palladium loco London 

 
	
  

 	
  

 
	
  

 	
 (as
 applicable to the specific Redemption Order); and 

 
	
  

 	
  

 
	
  

 	
 (2) within
 the next following three Business Days, Deliver: 

 
	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 unallocated
 Gold loco London (for the ETFS Gold Trust only) 

 
	
  

 	
  

 	
  

 
	
  

 	
 (as
 applicable to the specific Redemption Order)

 

in the amounts
specified in the communication sent in compliance with Section 3.01c. above, to
the account indicated by the redeeming Authorized Participant in its Redemption
Order (which shall be an appropriate bullion account with an LBMA member or
LPPM member, as applicable for the type of Bullion involved). With respect to
Gold from the ETFS Gold Trust and where the Authorized Participant elects loco
London delivery, the Authorized Participant must first agree to the cost of the
loco swap with the Custodian and reimburse the Custodian for any amount owed
under such swap. Having made such Delivery, the Custodian shall send written
confirmation thereof to the Trustee who shall then cancel the Shares so
redeemed. 

          e.
In all other cases, Delivery must be completed by the Custodian as soon as, in
the reasonable judgment of the Custodian, it is practicable following receipt
of written confirmation from the Trustee that the conditions set forth in
clauses (i) and (ii) of Section 3.01d. above have been satisfied. 

          f.
The foregoing provisions notwithstanding, neither the Trustee nor the Custodian
shall be liable for any failure or delay in making Delivery of Bullion in
respect of a Redemption Order arising from nuclear fission or fusion,
radioactivity, war, terrorist event, invasion, insurrection, civil commotion,
riot, strike, act of government, public authority, public service or utility
problems, power outages resulting in telephone, telecopy and computer failures,
act of God such as fires, floods, extreme weather conditions, market conditions
or activities causing trading halts, systems failures involving computer or
other information systems affecting a Trust, the Trustee, the Custodian or
sub-custodian, metal clearing bank delays and similar extraordinary events
beyond the Trustee’s control. In the event of any such delay, the time to
complete Delivery in respect of a Redemption Order will be extended for a
period equal to that during which the inability to perform continues. 

S1-11

          g.
In the event that, by 4:00 p.m. (New York time) on the second Business Day
following the Order Date of a Redemption Order, Trustee’s account at DTC shall
not have been credited with the total number of Shares corresponding to the
total number of Baskets to be redeemed pursuant to such Redemption Order, the
Trustee shall send to the Authorized Participant and the Custodian via fax or
electronic mail message notice of such fact and the Authorized Participant
shall have two (2) Business Days following receipt of such notice to correct
such failure. If such failure is not cured within such two (2) Business Day
period, the Trustee (in consultation with the Sponsor) will cancel such
Redemption Order and will send via fax or electronic mail message notice of
such cancellation to the Authorized Participant and the Custodian, and the
Authorized Participant will be solely responsible for all costs incurred by the
Trust, the Trustee or the Custodian related to the cancelled Order. The Trustee
is authorized to Deliver the Basket Amount for a Redemption Order
notwithstanding that the Basket(s) to be redeemed are not credited to the
Trustee’s DTC account by 9:00 a.m. (New York time) on the third Business Day
following the Order Date of a Redemption Order if the Authorized Participant
has collateralized its obligation to deliver the Baskets through DTC’s book
entry system on such terms as the Sponsor and the Trustee may from time to time
agree upon. 

          h.
The redemption of Shares may be suspended under the circumstances specified in
the applicable Prospectus. 

[Signatures
Follow on Next Page]

S1-12

          IN WITNESS WHEREOF, the Sponsor and the
Trustee have executed these First Amended and Restated Creation and Redemption
Procedures as of the date set forth above. 

THE BANK OF
NEW YORK MELLON, in its capacity as Trustee 

	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
 Name:

 	
  

 
	
 Title:

 	
  

 

ETF SECURITIES
USA LLC, in its capacity as Sponsor 

	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
 Name:

 	
  

 
	
 Title:

 	
  

 
	
  

 	
  

 
	
  

 	
  

 

S1-13

ANNEX I TO CREATION AND REDEMPTION PROCEDURES

THE
BANK OF NEW YORK MELLON, TRUSTEE

CREATION/REDEMPTION ORDER FORM

UNALLOCATED ORDERS ONLY

	
  

 	
  

 	
  

 
	
  

 	
 CONTACT
 INFORMATION FOR ORDER EXECUTION:

 
	
  

 	
 Telephone
 order number:

 	
 (718)
 315-7500

 
	
  

 	
 Fax order
 number:

 	
 (732) 667-9478

 

Participant
must complete all items in Part 1. The Trustee in its discretion may reject any
order not submitted in proper form.

I. TO BE COMPLETED BY
PARTICIPANT: 

	
  

 	
  

 	
  

 
	
 Name of
 Trust: 

 	

 

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
 Date:

 	
  

 	
 Time:

 	
  

 
	

 

 	
  

 	

 

 	
  

 
	
 Broker Name:

 	
  

 	
 Authorized
 Participant Firm Name:

 	
  

 
	

 

 	
  

 	

 

 	
  

 
	
 DTC
 Participant Number:

 	
  

 	
 Fax Number:

 	
  

 
	

 

 	
  

 	

 

 	
  

 
	
 Telephone
 Number:

 	
  

 	
 Symbol:

 	
  

 
	

 

 	
  

 	

 

 	
  

 

Type of order
(Check Creation or Redemption please) 

	
  

 	
  

 	
  

 	
  

 
	
 Creation:

 	
  

 	
 Redemption:

 	
  

 
	

 

 	
  

 	

 

 	
  

 
	
 # of
 Baskets:

 	
  

 	
 Number of
 Baskets written out:

 	
  

 
	

 

 	
  

 	

 

 	
  

 
	
 Order #

 	
  

 	
  

 	
  

 
	

 

 	
  

 	
  

 	
  

 

Please
indicate Bullion clearing agent: 

For Silver involving the ETFS Silver Trust
only

HSBC     o

For Silver involving the ETFS Precious Metals
Basket Trust or the ETFS White Metals Basket Trust and for Gold, Palladium and
Platinum 

	
  

 	
  

 	
  

 	
  

 
	
 JP Morgan

 	
 o

 	
 Other
 (please specify clearing agent): 

 	
  

 
	
  

 	
  

 	
  

 	

 

 

	
  

 	
  

 
	
 Account
 number for Bullion delivery:

 	
  

 
	

 

 	
  

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (With
 respect to Silver only):

 	
 loco London

 	
 o

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (With
 respect to Gold involving the ETFS Precious Metals Basket Trust only):

 	
 loco London

 	
 o

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (With
 respect to Gold involving the ETFS Gold Trust only):

 	
 loco London

 	
 o

 	
 loco Zurich

 	
 o

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (With respect
 to Platinum only):

 	
 loco London

 	
 o

 	
 loco Zurich

 	
 o

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (With
 respect to Palladium only):

 	
 loco London

 	
 o

 	
 loco Zurich

 	
 o

 

This Purchase
or Redemption Order is subject to the terms and conditions of the Trust
Agreement of the Shares of the Trust as currently in effect and the Authorized
Participant Agreement between the Authorized Participant, the Trustee and the
Sponsor named therein. All representations and warranties of the Authorized
Participant set forth in such Trust Agreement (including, if this is a Purchase
Order, the representations in Section 3.2 of the Trust Agreement) and in the
Authorized Participant Agreement are incorporated herein by reference and are
true and accurate as of the date hereof.

S1-14

The
undersigned does hereby certify as of the date set forth below that he/she is
an Authorized Representative under the Authorized Participant Agreement and
that he/she is authorized to deliver this Purchase or Redemption Order to the
Trustee on behalf of the Authorized Participant. The Authorized Participant
acknowledges and agrees that (1) once accepted by the Trustee, this Purchase or
Redemption Order will become a legally binding contract for the delivery by the
Authorized Participant of the Basket Amount per Basket for a Purchase Order, or
the number of Baskets for a Redemption Order, indicated above, and that the
final Basket Amount will be announced at the conclusion of the trading day and,
(2) any taxes (including Value Added Taxes) incurred in connection with this
transaction will be the responsibility of, and will be reimbursed upon demand
from the Custodian or the Trust by, the Authorized Participant if required
pursuant to the Authorized Participant Agreement.

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Authorized Representative’s Signature

 	
  

 	
 Date

 	
  

 

S1-15

II. TO BE COMPLETED
BY TRUSTEE: 

This certifies
that the above order has been: 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  Accepted by
 the Trustee

 
	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  Declined-Reason:

 	
  

 	
  

 
	

 

 	
  

 	

 

 	
  

 

Final # of
Ounces: 

	
  

 	
  

 
	
  

 	
  (Gold)

 
	

 

 	
  

 
	
  

 	
  (Silver)

 
	

 

 	
  

 
	
  

 	
  (Platinum)

 
	

 

 	
  

 
	
  

 	
  (Palladium)

 
	

 

 	
  

 

	
  

 	
  

 	
  

 
	
 Final # of
 Shares:

 	

 

 	
  

 

	
  

 	
  

 	
  

 
	
 Final Cash
 Due to BNYM 

 	

 

 	
  

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 
	
 Date

 	
  

 	
 Time

 	
  

 	
 Authorized
 Signature of Trustee

 	
  

 

S1-16

ANNEX II TO CREATION AND REDEMPTION
PROCEDURES

ORDER ENTRY SYSTEM TERMS AND CONDITIONS

          This
Annex II shall govern use by Authorized Participant of the electronic order
entry system for placing Purchase Orders and Redemption Orders for Shares (the
“System”).
Capitalized terms used but not otherwise defined herein shall have the meanings
ascribed to such terms in Schedule 1 of the Authorized Participant
Agreement. In the event of any
conflict between the terms of this Annex II and the main body of the Authorized
Participant Agreement with respect to the placing of Purchase Orders and
Redemption Orders, the terms of this Annex II shall control.

1. (a) Authorized
Participant shall provide to The Bank of New York Mellon a duly executed
authorization letter, in a form satisfactory to The Bank of New York Mellon,
identifying those authorized persons who will access the System (the “Authorized
Persons”). Authorized Participant shall notify The Bank of New York
Mellon in writing in the event that any person’s status as an Authorized Person
is revoked or terminated as soon as possible, in order to give The Bank of New
York Mellon a reasonable opportunity to terminate such Authorized Person’s
access to the System. 

          (b)
It is understood and agreed that each Authorized Person shall be designated as
an authorized user of Authorized Participant for the purpose of the Authorized
Participant Agreement. Upon termination of the Authorized Participant
Agreement, the Authorized Participant’s and each Authorized Person’s access
rights with respect to System shall be immediately revoked.

2. The Bank of New York
Mellon grants to Authorized Participant a personal, nontransferable and
nonexclusive license to use the System solely for the purpose of transmitting
Purchase Orders and Redemption Orders and otherwise communicating with The Bank
of New York Mellon in connection with the same. Authorized Participant shall
use the System solely for its own internal and proper business purposes. Except
as set forth herein, no license or right of any kind is granted to Authorized
Participant with respect to the System. Authorized Participant acknowledges
that The Bank of New York Mellon and its suppliers retain and have title and
exclusive proprietary rights to the System. Authorized Participant further
acknowledges that all or a part of the System may be copyrighted or trademarked
(or a registration or claim made therefor) by The Bank of New York Mellon or
its suppliers. Authorized Participant shall not take any action with respect to
the System inconsistent with the foregoing acknowledgments. Authorized
Participant may not copy, distribute, sell, lease or provide, directly or
indirectly, the System or any portion thereof to any other person or entity
without The Bank of New York Mellon’s prior written consent. Authorized
Participant may not remove any statutory copyright notice or other notice
included in the System. Authorized Participant shall reproduce any such notice
on any reproduction of any portion of the System and shall add any statutory
copyright notice or other notice upon The Bank of New York Mellon’s request.

2. (a) Authorized
Participant acknowledges that any user manuals or other documentation (whether
in hard copy or electronic form) (collectively, the “Material”), which is
delivered or made available to Authorized Participant regarding the System is
the exclusive and confidential property of The Bank of New York Mellon.
Authorized Participant shall keep the Material confidential by using the same
care and discretion that Authorized Participant uses with respect to its own
confidential property and trade secrets, but in no event less than reasonable
care. Authorized Participant may make such copies of the Material as is
reasonably necessary for Authorized Participant to use the System and shall
reproduce The Bank of New York Mellon’s proprietary markings on any such copy.
The foregoing shall not in any way be deemed to affect the copyright status of
any of the Material which may be copyrighted and shall apply to all Material
whether or not copyrighted. THE BANK OF NEW YORK MELLON AND ITS SUPPLIERS MAKE
NO WARRANTIES, EXPRESS OR IMPLIED, CONCERNING THE MATERIAL OR ANY PRODUCT OR
SERVICE, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE.

S1-17

(b) Upon termination of the
Authorized Participant Agreement for any reason, Authorized Participant shall
return to The Bank of New York Mellon all copies of the Material which is in
Authorized Participant’s possession or under its control.

3. Authorized Participant
agrees that it shall have sole responsibility for maintaining adequate security
and control of the user IDs, passwords and codes for access to the System,
which shall not be disclosed to any third party without the prior written
consent of The Bank of New York Mellon. The Bank of New York Mellon shall be
entitled to rely on the information received by it from the Authorized
Participant and The Bank of New York Mellon may assume that all such
information was transmitted by or on behalf of an Authorized Person regardless
of by whom it was actually transmitted.

4. The Bank of New York
Mellon shall have no liability in connection with the use of the System, the
access granted to the Authorized Participant and its Authorized Persons
hereunder, or any transaction effected or attempted to be effected by the
Authorized Participant hereunder, except for damages incurred by the Authorized
Participant as a direct result of The Bank of New York Mellon’s gross
negligence or willful misconduct. WITHOUT LIMITING THE GENERALITY OF THE
FOREGOING, IT IS HEREBY AGREED THAT IN NO EVENT SHALL THE BANK OF NEW YORK
MELLON OR ANY MANUFACTURER OR SUPPLIER OF EQUIPMENT, SOFTWARE OR SERVICES BE
RESPONSIBLE OR LIABLE FOR ANY SPECIAL, INDIRECT, OR CONSEQUENTIAL DAMAGES WHICH
THE AUTHORIZED PARTICIPANT MAY INCUR OR EXPERIENCE BY REASON OF ITS HAVING
ENTERED INTO OR RELIED ON THIS AGREEMENT, OR IN CONNECTION WITH THE ACCESS
GRANTED TO AUTHORIZED PARTICIPANT HEREUNDER, OR ANY TRANSACTION EFFECTED OR
ATTEMPTED TO BE EFFECTED BY AUTHORIZED PARTICIPANT HEREUNDER, EVEN IF THE BANK
OF NEW YORK MELLON OR SUCH MANUFACTURER OR SUPPLIER HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES, NOR SHALL THE BANK OF NEW YORK MELLON OR ANY SUCH
MANUFACTURER OR SUPPLIER BE LIABLE FOR ACTS OF GOD, MACHINE OR COMPUTER
BREAKDOWN OR MALFUNCTION, INTERRUPTION OR MALFUNCTION OF COMMUNICATION
FACILITIES, LABOR DIFFICULTIES OR ANY OTHER SIMILAR OR DISSIMILAR CAUSE BEYOND
SUCH PERSON’S REASONABLE CONTROL.

5. The Bank of New York
Mellon reserves the right to revoke Authorized Participant’s access to the
System immediately and without notice upon any breach by the Authorized
Participant of the terms and conditions of this Annex II.

6. The Bank of New York
Mellon shall acknowledge through the System its receipt of each Purchase Order
or Redemption Order communicated through the System, and in the absence of such
acknowledgment The Bank of New York Mellon shall not be liable for any failure
to act in accordance with such orders and Authorized Participant may not claim
that such Purchase Order or Redemption Order was received by The Bank of New
York Mellon. The Bank of New York Mellon may in its discretion
decline to act upon any instructions or communications that are insufficient or
incomplete or are not received by The Bank of New York Mellon in sufficient
time for The Bank of New York Mellon to act upon, or in accordance with such
instructions or communications.

          7.
Authorized Participant agrees to use reasonable efforts to prevent the
transmission through the System of any software or file which contains any
viruses, worms, harmful component or corrupted data and agrees not to use any
device, software, or routine to interfere or attempt to interfere with the
proper working of the Systems. 

          8.
Authorized Participant acknowledges and agrees that encryption may not be
available for every communication through the System, or for all data.
Authorized Participant agrees that The Bank of New York Mellon may deactivate
any encryption features at any time, without notice or liability to Authorized
Participant, for the purpose of maintaining, repairing or troubleshooting its
systems. 

S1-18

SCHEDULE 2- STANDARD TERMS

TABLE OF CONTENTS - SCHEDULE 2

	
 

	
 

	
 

	
 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 	
  

 	

 

 
	
 ARTICLE
 I ORDERS FOR PURCHASE AND REDEMPTION

 	
  

 	
  

 	
  

 
	
  

 	
 Section
 1.01.

 	
  

 	
 Authorization
 to Purchase and Redeem Baskets

 	
  

 	
  

 	
 1

 
	
  

 	
 Section
 1.02.

 	
  

 	
 Procedures
 for Orders

 	
  

 	
  

 	
 1

 
	
  

 	
 Section
 1.03.

 	
  

 	
 Consent
 to Recording

 	
  

 	
  

 	
 1

 
	
  

 	
 Section
 1.04.

 	
  

 	
 Irrevocability

 	
  

 	
  

 	
 1

 
	
  

 	
 Section
 1.05.

 	
  

 	
 Costs
 and Expenses

 	
  

 	
  

 	
 2

 
	
  

 	
 Section
 1.06.

 	
  

 	
 Delivery
 of Property to the Trust

 	
  

 	
  

 	
 2

 
	
  

 	
 Section
 1.07.

 	
  

 	
 Title
 to Deposit Property and Shares Surrendered for Redemption

 	
  

 	
  

 	
 2

 
	
  

 	
 Section
 1.08.

 	
  

 	
 Certain
 Payments or Distributions

 	
  

 	
  

 	
 3

 
	
  

 	
 Section
 1.09.

 	
  

 	
 Ambiguous
 Instructions

 	
  

 	
  

 	
 3

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE
 II AUTHORIZED REPRESENTATIVES

 	
  

 	
  

 	
  

 
	
  

 	
 Section
 2.01.

 	
  

 	
 Certification

 	
  

 	
  

 	
 4

 
	
  

 	
 Section
 2.02.

 	
  

 	
 PIN
 Numbers

 	
  

 	
  

 	
 4

 
	
  

 	
 Section
 2.03.

 	
  

 	
 Termination
 of Authority

 	
  

 	
  

 	
 4

 
	
  

 	
 Section
 2.04.

 	
  

 	
 Verification

 	
  

 	
  

 	
 5

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE
 III STATUS OF THE AUTHORIZED PARTICIPANT

 	
  

 	
  

 	
  

 
	
  

 	
 Section
 3.01.

 	
  

 	
 Clearing
 Status

 	
  

 	
  

 	
 5

 
	
  

 	
 Section
 3.02.

 	
  

 	
 Broker-Dealer
 Status

 	
  

 	
  

 	
 5

 
	
  

 	
 Section
 3.03.

 	
  

 	
 Foreign
 Status

 	
  

 	
  

 	
 5

 
	
  

 	
 Section
 3.04.

 	
  

 	
 Compliance
 with Certain Laws

 	
  

 	
  

 	
 6

 
	
  

 	
 Section
 3.05.

 	
  

 	
 Authorized
 Participant Status

 	
  

 	
  

 	
 6

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE
 IV ROLE OF AUTHORIZED PARTICIPANT

 	
  

 	
  

 	
  

 
	
  

 	
 Section
 4.01.

 	
  

 	
 No Agency

 	
  

 	
  

 	
 6

 
	
  

 	
 Section
 4.02.

 	
  

 	
 Rights
 and Obligations of DTC Participant

 	
  

 	
  

 	
 6

 
	
  

 	
 Section
 4.03.

 	
  

 	
 Beneficial
 Owner Communications

 	
  

 	
  

 	
 6

 
	
  

 	
 Section
 4.04.

 	
  

 	
 Authorized
 Participant Customer Information

 	
  

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE
 V MARKETING MATERIALS AND REPRESENTATIONS AND WARRANTIES

 	
  

 	
  

 	
  

 
	
  

 	
 Section
 5.01.

 	
  

 	
 Authorized
 Participant’s
 Representation

 	
  

 	
  

 	
 7

 
	
  

 	
 Section
 5.02.

 	
  

 	
 Prospectus

 	
  

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE
 VI INDEMNIFICATION; LIMITATION OF LIABILITY

 	
  

 	
  

 	
  

 
	
  

 	
 Section
 6.01.

 	
  

 	
 Indemnification

 	
  

 	
  

 	
 8

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE
 VII MISCELLANEOUS

 	
  

 	
  

 	
  

 
	
  

 	
 Section
 7.01.

 	
  

 	
 Commencement
 of Trading

 	
  

 	
  

 	
 10

 

i

          STANDARD TERMS FOR AUTHORIZED PARTICIPANT AGREEMENTS (the
“Standard Terms”) agreed to as of _________, 2010 by and between The Bank of
New York Mellon, a New York banking corporation (the “Trustee”), and ETF
Securities USA LLC, a Delaware limited liability company (the “Sponsor”).  

ARTICLE I

ORDERS FOR PURCHASE AND REDEMPTION

          Section
1.01. Authorization to Purchase and Redeem Baskets. Subject to the
provisions of the Authorized Participant Agreement, during the term of the
Authorized Participant Agreement the Authorized Participant will be authorized
to purchase and redeem Baskets of Shares in compliance with the provisions of
the relevant Prospectus. 

          Section
1.02. Procedures for Orders. Each party hereto agrees to comply with the
provisions of the relevant Prospectus and the Procedures to the extent
applicable to it. 

          Section
1.03. Consent to Recording. The phone lines used by the Trustee, the
Custodian, the Sponsor and/or their affiliated persons may be recorded, and the
Authorized Participant hereby consents to the recording of all calls with any
of those parties. In the event that the Trustee, the Custodian, the Sponsor or
any of their affiliated persons becomes legally compelled to disclose to any
third party any recording involving communications with the Authorized
Participant, the Sponsor agrees to provide the Authorized Participant with
reasonable advance written notice identifying the recordings to be so disclosed
unless prohibited by applicable rule, law or order, together with copies of
such recordings, so that the Authorized Participant may seek a protective order
or other appropriate remedy with respect to the recordings or waive its right
to do so. In the event that such protective order or other remedy is not
obtained or the Authorized Participant waives its right to seek such protective
order or remedy, the Sponsor will use commercially reasonable efforts to obtain
reliable assurance that confidential treatment will be accorded the recorded
conversation. The Trustee, the Sponsor or any of their affiliated persons shall
not otherwise disclose to any third party any recording involving
communications with the Authorized Participant without the Authorized
Participant’s express written consent, except the Trustee and the Sponsor may
disclose to any regulatory or self-regulatory organization, to the extent
required by applicable rule or law, any recording involving communications with
the Authorized Participant. 

          Section
1.04. Irrevocability. The Authorized Participant agrees that delivery to
the Trustee of an Order shall be irrevocable; provided that the Trust will
reject any Order that is not properly completed. In the event that the purchase
or redemption of Baskets is suspended by the Trustee or the Sponsor and such
suspension affects any Order submitted by the Authorized Participant, the
Trustee or Sponsor, as applicable, will promptly notify the Authorized
Participant of such suspension. In such case, the Sponsor agrees to undertake
commercially reasonable efforts to accommodate any request by the Authorized
Participant to cancel a previously placed Order.

          Section
1.05. Costs and Expenses. The Authorized Participant shall be
responsible for the expenses and costs incurred by the Trust that can be
directly attributable to Orders submitted by the Authorized Participant other
than ordinary course expenses and costs which are reimbursed through payment of
the fee contemplated in Section 2.02(g) of the Procedures. The Trustee or 

S2-1

the Sponsor
shall provide the Authorized Participant with reasonably detailed information
relating to such expenses and costs upon request by the Authorized Participant.

          Section
1.06. Delivery of Property to the Trust and Shares Surrendered for
Redemption. The Authorized Participant understands and agrees that in the
event Deposit Property is not transferred to the Trust by the time specified
for the Purchase Order, or Shares are not delivered to the Trustee by the time
specified for the Redemption Order and, in each such case, in compliance with
the Procedures and the relevant Prospectus, the Purchase Order or Redemption Order
may be cancelled by the Trustee and the Authorized Participant will be solely
responsible for all costs incurred by the Trust, the Trustee or the Custodian
related to the cancelled Order. The Authorized Participant will not, however,
be responsible for costs incurred by the Trust, the Trustee, or the Custodian
related to cancelled Orders where the failure to transfer Deposit Property to
the Trust is due to the gross negligence, bad faith, or reckless or willful
misconduct of the Trustee, the Sponsor, or the Custodian. The foregoing
provisions notwithstanding, the Authorized Participant shall not be liable for
any failure or delay in making Delivery of Bullion in respect of a Purchase
Order or for any failure or delay in surrendering Shares for redemption arising
from nuclear fission or fusion, radioactivity, war, terrorist event, invasion,
insurrection, civil commotion, riot, strike, act of government, public
authority, public service or utility problems, power outages resulting in
telephone, telecopy and computer failures, acts of God, such as fires, floods,
extreme weather conditions, market conditions or activities causing trading
halts, systems failures involving computer or other information systems
affecting the Authorized Participant, or similar extraordinary events beyond
the Authorized Participant’s control. In the event of any such delay, the time
to complete Delivery in respect of a Purchase Order or Redemption Order will be
extended for a period equal to that during which the inability to perform
continues. Upon the deposit of any Bullion, the Authorized Participant as
Depositor represents and warrants that (i) the Bullion meets the relevant
requirements to be such Bullion and contains the required number of Ounces,
(ii) the Authorized Participant is duly authorized to make such deposit of
Bullion and (iii) at the time of delivery, the Bullion is free and clear of any
lien, pledge, encumbrance, right, charge or claim.

          Section
1.07. Title to Deposit Property and Shares Surrendered for Redemption.
The Authorized Participant represents and warrants to the Trustee and the
Sponsor that 

	
  

 	
  

 	
  

 
	
  

 	
           a.
 in connection with each Purchase Order, the Authorized Participant will have
 the right and authority to transfer to the Trust the corresponding Deposit
 Property, and that upon delivery of such Deposit Property to the Custodian
 and/or the relevant sub-custodian in accordance with the Procedures, the
 Trust will acquire good and unencumbered title to such property, free and
 clear of all liens, charges, duties imposed on the transfer of assets and
 encumbrances and not subject to any adverse claims or transferability
 restrictions, whether arising by operation of law or otherwise; and

 
	
  

 	
  

 	
  

 
	
  

 	
           b.
 in connection with a Redemption Order, the Authorized Participant will have
 the right and authority to surrender to the Trustee for redemption the
 corresponding Shares, and upon such surrender the Trust will acquire good and
 unencumbered title to such Shares, free and clear of all liens, charges,
 duties imposed on the transfer of assets and encumbrances and not subject to
 any adverse claims, transferability restrictions (whether arising by
 operation of law or otherwise), loan, pledge, repurchase or securities
 lending agreements or other arrangements which, under such circumstances,
 would

 

S2-2

	
  

 	
  

 
	
  

 	
 preclude the
 delivery of such Shares to the Trustee on the third Business Day following
 the date of the Redemption Order.

 

          Section
1.08. Certain Payments or Distributions. 

	
  

 	
  

 	
  

 
	
  

 	
           a.
 With respect to any Purchase Order, the Trustee acknowledges and agrees to
 return to the Authorized Participant or any Authorized Participant Client for
 which it is acting any payment, distribution or other amount paid to the
 Trust in respect of any Deposit Property transferred to the Trust that, based
 on the valuation of such Deposit Property at the time of transfer, should
 have been paid to the Authorized Participant or any Authorized Participant
 Client. Likewise, the Authorized Participant acknowledges and agrees to
 return to the Trust any payment, distribution or other amount paid to the
 Authorized Participant or any Authorized Participant Client in respect of any
 Deposit Property transferred to the Trust that, based on the valuation of
 such Deposit Property at the time of transfer, should have been paid to the
 Trust. 

 
	
  

 	
  

 	
  

 
	
  

 	
           b.
 With respect to any Redemption Order, the Authorized Participant on behalf of
 itself and any Authorized Participant Client acknowledges and agrees to
 return to the Trust any payment, distribution or other amount paid to it or
 an Authorized Participant Client in respect of any property transferred to
 the Authorized Participant or any Authorized Participant Client that, based
 on the valuation of such property at the time of transfer, should have been
 paid to the Trust. The Trustee is entitled to reduce the amount of any
 property due to the Authorized Participant or any Authorized Participant
 Client by an amount equal to any payment, distribution or other sum to be
 paid to the Authorized Participant or to the Authorized Participant Client in
 respect of any property transferred to the Authorized Participant or any
 Authorized Participant Client that, based on the valuation of such property
 at the time of transfer, should be paid to the Trust. If, however, the
 Trustee so reduces an amount of any property appropriately due to the
 Authorized Participant, the Authorized Participant shall not be required to
 return to the Trust payments, distributions or other amounts equal to such
 reduction that has been paid to the Authorized Participant or the Authorized
 Participant Client as is contemplated in the first sentence of this Section
 1.08(b). Likewise, the Trust acknowledges and agrees to return to the
 Authorized Participant or any Authorized Participant Client any payment,
 distribution or other amount paid to it in respect of any Shares transferred
 to the Trust that, based on the valuation of such Shares at the time of
 transfer, should have been paid to the Authorized Participant or such
 Authorized Participant Client. 

 

          Section
1.09. Ambiguous Instructions. In the event that a Purchase Order or
Redemption Order contains terms that differ from the information provided in
the related telephone call or email transmission, the Trustee will attempt to
contact the Authorized Participant to request confirmation of the terms of the
order at the telephone number indicated in the Purchase Order or Redemption
Order. If an Authorized Representative confirms the terms as they appear in the
Purchase Order or Redemption Order, then the order will be accepted and
processed. If an Authorized Representative contradicts the terms of the
Purchase Order or Redemption Order, the order will be deemed invalid, and a
corrected Purchase Order or Redemption Order must be received by the Trustee
not later than the earlier of (i) within fifteen (15) minutes of such contact
with the Authorized Representative or (ii) thirty (30) minutes after the Order
Cutoff Time. For the avoidance of doubt, notwithstanding the invalidation of
the initial Purchase Order or Redemption Order pursuant to this paragraph, a
Purchase Order or Redemption Order that is 

S2-3

otherwise in
proper form shall be deemed submitted at the time of its initial submission for
purposes of determining when orders are deemed “received.” If the Trustee is
not able to contact an Authorized Person, then the Purchase Order or Redemption
Order shall be accepted and processed in accordance with its terms
notwithstanding any inconsistency from the terms of the telephone information.
In the event that a Purchase Order or Redemption Order contains terms that are
illegible, the submission will be deemed invalid and the Trustee will attempt
to contact the Authorized Participant to request retransmission. A corrected
Purchase Order or Redemption Order must be received by the Trustee, as
applicable, not later than the earlier of (i) within fifteen (15) minutes of
such contact with the Authorized Participant or (ii) thirty (30) minutes after
the Order Cutoff Time.

ARTICLE II

AUTHORIZED REPRESENTATIVES

          Section
2.01. Certification. Concurrently with the execution of the Authorized
Participant Agreement, the Authorized Participant shall deliver to the Trustee
a certificate in a form as attached at Schedule 3-A to the Authorized
Participant Agreement (an “Authorized Representative Certificate”) signed by
the Authorized Participant’s Secretary or other duly authorized person setting
forth the names, signatures, e-mail addresses and telephone and facsimile
numbers of all persons authorized to give instructions relating to any activity
contemplated hereby or any other notice, request or instruction on behalf of
the Authorized Participant (each an “Authorized
Representative”). Such certificate may be accepted and relied upon
by the Trustee as conclusive evidence of the facts set forth therein and shall
be considered to be in full force and effect until (i) receipt by the Trustee
of a superseding Authorized Representative Certificate, or (ii) termination of
the Authorized Participant Agreement. After such Authorized Representative
Certificate is accepted by the Trustee, the Authorized Participant may
authorize additional Authorized Representatives to give instructions relating
to any activity contemplated hereby or any other notice, request or instruction
on behalf of the Authorized Participant by delivering to the Trustee an
addendum to the certificate described above in a form as attached at Schedule
3-B to the Authorized Participant Agreement.  

          Section
2.02. PIN Numbers. The Trustee shall issue to each Authorized
Participant a unique personal identification number (“PIN Number”) by which such Authorized Participant shall be
identified and instructions issued by the Authorized Participant shall be
authenticated. The PIN Number shall be kept confidential and only provided to
Authorized Representatives. The Authorized Participant may revoke the PIN
Number at any time upon written notice to the Trustee, and the Authorized
Participant shall be responsible for doing so in the event that it becomes
aware that an unauthorized person has received access to its PIN Number or has
or intends to use the PIN Number in an unauthorized manner. Upon receipt of
such written request, the Trustee shall, as promptly as practicable, de-activate
the PIN Number. If an Authorized Participant’s PIN Number is changed, the new
PIN Number will become effective on a date mutually agreed upon by the
Authorized Participant and the Trustee. Except as otherwise provided in these
Standard Terms, the Authorized Participant agrees that, absent the Trustee’s
fraud, gross negligence, bad faith or reckless or willful misconduct in failing
to cancel the PIN Number promptly following a written request to do so from the
Authorized Participant or the termination of the Authorized Participant
Agreement, none of the Trust or the Trustee shall be liable for losses incurred
by the Authorized Participant as a result of unauthorized use of the Authorized
Participant’s PIN Number prior to the time when the Authorized Participant
provides 

S2-4

notice to the
Trustee of the termination or revocation of authority pursuant to Section 2.03
and the Trustee has de-activated the PIN Number as provided for in this
paragraph. 

          Section
2.03. Termination of Authority. Upon the termination or revocation of
authority of an Authorized Representative by the Authorized Participant, the
Authorized Participant shall (i) give, as promptly as practicable under the
circumstances, written notice of such fact to the Trustee and such notice shall
be effective upon receipt by the Trustee; and (ii) request a new PIN Number.
The Trustee shall, as promptly as practicable, de-activate the PIN Number upon
receipt of such written notice. 

          Section
2.04. Verification. The Trustee may assume that all instructions issued
to it using the Authorized Participant’s PIN Number have been properly placed
by Authorized Representatives, unless the Trustee has actual knowledge to the
contrary or the Authorized Participant has revoked its PIN Number. The Trustee
shall have no duty to verify that an Order is being placed by an Authorized
Representative that uses a valid PIN Number. The Authorized Participant agrees
that the Trustee shall not be responsible, absent the Trustee’s fraud, gross
negligence, bad faith or reckless or willful misconduct, for any losses
incurred by the Authorized Participant as a result of an Authorized
Representative identifying himself or herself as a different Authorized
Representative or an unauthorized person identifying himself or herself as an
Authorized Representative, unless the Trustee previously received from the
Authorized Participant written notice to revoke its PIN Number. 

ARTICLE III

STATUS OF THE AUTHORIZED PARTICIPANT

          Section
3.01. Clearing Status. The Authorized Participant represents, covenants
and warrants that, as of the date of execution of the Authorized Participant
Agreement, and at all times during the term of the Authorized Participant
Agreement, the Authorized Participant is and will be entitled to use the
clearing and settlement services of each of the national or international
clearing and settlement organizations through which, in compliance with the
Procedures, the transactions contemplated hereby will clear and settle. Any
change in the foregoing status of the Authorized Participant shall terminate
the Authorized Participant Agreement and the Authorized Participant shall give
prompt written notice thereof to the Trustee. 

          Section
3.02. Broker-Dealer Status. The Authorized Participant represents and
warrants that, if required under U.S. law, it is (i) registered as a
broker-dealer under the Securities Exchange Act of 1934, as amended, (ii)
qualified to act as a broker or dealer in the states or other jurisdictions
where it transacts business to the extent so required by applicable law, and
(iii) a member in good standing with FINRA. The Authorized Participant agrees
that it will maintain such registrations, qualifications, and membership in
good standing and in full force and effect throughout the term of the
Authorized Participant Agreement. The Authorized Participant further agrees to
comply with all applicable U.S. federal laws, the laws of the states or other
jurisdictions concerned, and the rules and regulations promulgated thereunder,
to the extent such laws and regulations are applicable to the Authorized
Participant’s transactions in Shares, and with the FINRA By-Laws and Conduct
Rules of the NASD (or with comparable FINRA Conduct Rules, if such NASD Conduct
Rules are subsequently repealed, rescinded, or are otherwise replaced by FINRA
Conduct Rules) to the extent the foregoing relates to the Authorized
Participant’s transactions in, and activities with respect to, Shares, and that
it will not 

S2-5

offer or sell
Shares in any state or jurisdiction where they may not lawfully be offered
and/or sold. 

          Section
3.03. Foreign Status. If the Authorized Participant is offering and
selling Shares in jurisdictions outside the several states, territories and
possessions of the United States and is not otherwise required to be
registered, qualified, or a member of FINRA as set forth in the preceding
paragraph, the Authorized Participant nevertheless agrees to observe the
applicable laws of the jurisdiction in which such offer and/or sale is made and
to conduct its business in accordance with the FINRA Conduct Rules, to the
extent the foregoing relates to the Authorized Participant’s transactions in,
and activities with respect to, Shares. 

          Section
3.04. Compliance with Certain Laws. If the Authorized Participant is
subject to the requirements of the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001 (the “U.S.A. PATRIOT Act”), the Authorized Participant has policies and
procedures reasonably designed to comply with the anti-money laundering and
related provisions of the U.S.A. PATRIOT Act. 

          Section
3.05. Authorized Participant Status. The Authorized Participant
understands and acknowledges that the method by which Baskets of Shares will be
created and traded may raise certain issues under applicable securities laws.
For example, because new Baskets of Shares may be issued and sold by the Trust
on an ongoing basis, at any point a “distribution”, as such term is used in the
1933 Act, may occur. 

ARTICLE IV

ROLE OF AUTHORIZED PARTICIPANT

          Section
4.01. No Agency. The Authorized Participant acknowledges and agrees that
for all purposes of the Authorized Participant Agreement, the Authorized Participant
will have no authority to act as agent for the Trust or the Trustee in any
matter or in any respect. The Authorized Participant agrees to make itself and
its employees available, upon reasonable request, during normal business hours
to consult with the Trustee, the Sponsor or their designees concerning the
performance of the Authorized Participant’s responsibilities under the
Authorized Participant Agreement; provided, however, that the Authorized
Participant shall be under no obligation to divulge or otherwise disclose any
information that the Authorized Participant reasonably believes (i) the
disclosure of which to third parties is in violation of any applicable law or
regulation or is otherwise prohibited, or (ii) is confidential or proprietary in
nature. 

          Section
4.02. Rights and Obligations of DTC Participant. The Authorized
Participant, as a DTC Participant, agrees that it shall be bound by all of the
obligations of a DTC Participant in addition to any obligations that it
undertakes hereunder or in accordance with the Procedures. 

          Section
4.03. Beneficial Owner Communications. The Authorized Participant agrees
(i) subject to any limitations arising under federal or state securities laws
relating to privacy, its internal privacy policies, or other obligations it may
have to its customers, to assist the Trustee or the Sponsor in determining
certain information regarding sales of Shares made by or through the Authorized
Participant (including, without limitation, the ownership level of each
beneficial owner relating to positions in Shares that the Authorized
Participant may hold as record holder) upon the request of the Trustee or the
Sponsor that is necessary for the Trustee or Sponsor to 

S2-6

comply with
their obligations to distribute information to beneficial owners of Shares
under applicable state or federal securities laws or (ii) in lieu thereof, and
at the option of the Authorized Participant, to forward to such beneficial
owners written materials and communications received from the Sponsor or the
Trustee in sufficient quantities to allow mailing thereof to such beneficial
owners, including notices, annual reports, disclosure or other informational
materials and any amendments or supplements thereto that may be required to be
sent by the Sponsor or the Trustee to such beneficial owners pursuant
applicable law or regulation or otherwise, or that the Sponsor or the Trustee
reasonably wishes to distribute to such beneficial owners, in each case at the
expense of the Sponsor and/or the Trust.

          Section
4.04. Authorized Participant Customer Information. The Sponsor and the
Trustee agree that the names and addresses and other information concerning the
Authorized Participant’s customers are and shall remain the sole property of
the Authorized Participant, and none of the Sponsor, the Trust, or the Trustee,
or any of their respective affiliates shall use such names, addresses or other
information for any purpose except in connection with the performance of their
duties and responsibilities under the Authorized Participant Agreement, the
Procedures, the Standard Terms and the applicable Prospectus and except for
servicing and informational mailings related to the Trust(s) referred to in
Section 4.03 above.

ARTICLE V

MARKETING MATERIALS AND REPRESENTATIONS AND
WARRANTIES

          Section
5.01. Authorized Participant’s Representation. The Authorized
Participant represents, warrants and agrees that, in connection with any sale
or solicitation of a sale of Shares, it will not make, or permit any of its
representatives to make on its behalf, any representations concerning Shares
other than those not inconsistent with the Trust’s then current Prospectus or
any promotional materials or sales literature furnished to the Authorized Participant
by the Sponsor. The Authorized Participant agrees not to furnish or cause to be
furnished to any person or display or publish any information or materials
relating to Shares (excluding, without limitation, promotional materials and
sales literature, advertisements, press releases, announcements, statements,
posters, signs or other similar materials not inconsistent with the Trust’s
then current Prospectus and in accordance with applicable laws and regulations,
and any materials prepared and used for the Authorized Participant’s internal
use only or brokerage communications prepared by the Authorized Participant in
the normal course of its business), except such information and materials as
may be furnished to the Authorized Participant by the Sponsor and such other
information and materials as may be approved in writing by the Sponsor. The
Authorized Participant understands that the Trust will not be advertised as
offering redeemable securities, and that any advertising materials will
prominently disclose that the Shares are not redeemable units of beneficial
interest in the Trust. Notwithstanding the foregoing, the Authorized
Participant and its Affiliates and representatives may, without the approval of
the Sponsor, prepare and circulate in the regular course of their respective
businesses, research, reports, marketing materials, sales literature or similar
materials that include information, opinions or recommendations relating to
Shares (i) for public dissemination, provided that such reports, research,
marketing materials, sales literature or other similar materials comply with
applicable FINRA rules and (ii) for internal use by the Authorized Participant
and its Affiliates and representatives. 

S2-7

          Section
5.02. Prospectus. The Sponsor will provide, or cause to be provided, to
the Authorized Participant copies of the then current Prospectus and any
printed supplemental information in reasonable quantities upon request. The
Sponsor will, as promptly as practicable under the circumstances, notify the
Authorized Participant when a revised, supplemented or amended Prospectus for
the Shares is available, and deliver or otherwise make available to the
Authorized Participant copies of such revised, supplemented or amended
Prospectus at such time and in such quantities as may be reasonable to permit
the Authorized Participant to comply with any obligation the Authorized
Participant may have to deliver such Prospectus to its customers. The Sponsor
will make such revised, supplemented or amended Prospectus available to the
Authorized Participant no later than its effective date. The Sponsor shall be
deemed to have complied with this Section 5.02 when the Authorized Participant
has received such revised, supplemented or amended Prospectus by e-mail, in
printable form, with such number of hard copies as may be agreed from time to
time by the parties promptly thereafter

ARTICLE VI

INDEMNIFICATION; LIMITATION OF LIABILITY

          Section
6.01. Indemnification. The provisions of this Section 6.01 shall survive
termination of the Agreement. 

	
  

 	
  

 	
  

 
	
  

 	
           a.
 The Authorized Participant shall indemnify and hold harmless the Sponsor, in
 its capacity as sponsor of the applicable Trust, the Trustee, the Trust and
 their respective Affiliates, subsidiaries, directors, officers, employees and
 agents, and each person, if any, who controls such persons within the meaning
 of Section 15 of the 1933 Act (each an “AP
 Indemnified Party”) from and against any loss, liability, cost and
 expense (including reasonable attorneys’ fees) incurred by such AP
 Indemnified Party as a result of (i) any breach by the Authorized Participant
 of any provision of the Authorized Participant Agreement that relates to the
 Authorized Participant; (ii) any failure on the part of the Authorized Participant
 to perform any of its obligations set forth in the Authorized Participant
 Agreement applicable to it; (iii) any failure by the Authorized Participant
 to comply in all material respects with applicable laws, including rules and
 regulations of self-regulatory organizations to the extent such laws, rules
 and regulations are applicable to the transactions being undertaken pursuant
 to the Authorized Participant Agreement; or (iv) actions of such AP
 Indemnified Party pursuant to any instructions issued in accordance with the
 relevant Prospectus, Authorized Participant Agreement, the Procedures, or the
 Standard Terms reasonably believed by the AP Indemnified Party to be genuine
 and to have been given by the Authorized Participant except to the extent that
 the Authorized Participant had previously revoked a PIN Number used in giving
 such instructions or representations (where applicable) and such revocation
 was given by the Authorized Participant and received by the Trustee in
 accordance with the terms of Section 2.03 hereto. The Authorized Participant
 shall not be liable under its indemnity agreement contained in this paragraph
 with respect to any claim made against any AP Indemnified Party unless the AP
 Indemnified Party shall have notified the Authorized Participant in writing
 of the claim within a reasonable time after the summons or other first
 written notification giving information of the nature of the claim was served
 upon the AP Indemnified Party (or after the AP Indemnified Party shall have
 received notice of service on any designated agent). However, failure to
 notify the Authorized Participant of any claim shall not relieve the
 Authorized Participant from any liability which it may 

 

S2-8

	
  

 	
  

 
	
  

 	
 have to any
 AP Indemnified Party against whom such action is brought otherwise than on
 account of its indemnity agreement contained in this paragraph and shall only
 release it from such liability under this paragraph to the extent it has been
 materially prejudiced by such failure to give notice. The Authorized
 Participant shall be entitled to participate at its own expense in the
 defense, or, if it so elects, to assume the defense of any suit brought to
 enforce any claims, but if the Authorized Participant elects to assume the
 defense, the defense shall be conducted by counsel chosen by it and
 satisfactory to the AP Indemnified Parties in the suit and who shall not,
 except with consent of the AP Indemnified Parties, be counsel to the
 Authorized Participant. If the Authorized Participant does not elect to assume
 the defense of any suit, it will reimburse the AP Indemnified Parties in the
 suit for the reasonable fees and expenses of any counsel retained by them.

 
	
  

 	
  

 
	
  

 	
           b.
 The Sponsor hereby agrees to indemnify and hold harmless the Authorized
 Participant, its Affiliates, subsidiaries, directors, officers, employees and
 agents, and each person, if any, who controls such persons within the meaning
 of Section 15 of the 1933 Act (each a “Sponsor
 Indemnified Party”) from and against any loss, liability, cost and
 expense (including reasonable attorneys’ fees) incurred by such Sponsor
 Indemnified Party as a result of (i) any breach by the Sponsor of any
 provision of the Authorized Participant Agreement that relates to the
 Sponsor; (ii) any failure on the part of the Sponsor to perform any of its
 obligations set forth in the Authorized Participant Agreement applicable to
 it; (iii) any failure on the part of the Sponsor to comply in all material
 respects with applicable laws, including rules and regulations of self-regulatory
 organizations to the extent such laws, rules and regulations are applicable
 to the transactions being undertaken pursuant to the Authorized Participant
 Agreement; (iv) actions of such Sponsor Indemnified Party pursuant to any
 instructions issued or representations made in accordance with the relevant
 Prospectus, Authorized Participant Agreement, the Procedures, or the Standard
 Terms reasonably believed by the Sponsor Indemnified Party to be genuine and
 to have been given by the Sponsor; or (v) any untrue statements or omissions
 made in any promotional material or sales literature furnished to the
 Authorized Participant by the Sponsor or otherwise approved in writing by the
 Sponsor. The Sponsor shall not be liable under its indemnity
 agreement contained in this paragraph with respect to any claim made against
 any Sponsor Indemnified Party unless the Sponsor Indemnified Party shall have
 notified the Sponsor in
 writing of the claim within a reasonable time after the summons or other
 first written notification giving information of the nature of the claim
 shall have been served upon the Sponsor Indemnified Party (or after the
 Sponsor Indemnified Party shall have received notice of service on any
 designated agent). However, failure to notify the Sponsor of any claim shall not relieve the Sponsor from any liability which it
 may have to any Sponsor Indemnified Party against whom such action is brought
 otherwise than on account of its indemnity agreement contained in this
 paragraph and shall only release it from such liability under this paragraph
 to the extent it has been materially prejudiced by such failure to give
 notice. The Sponsor shall be
 entitled to participate at its own expense in the defense, or, if it so
 elects, to assume the defense of any suit brought to enforce any claims, but
 if the Sponsor elects to assume the defense, the defense shall be conducted
 by counsel chosen by it and satisfactory to the Sponsor Indemnified Parties
 in the suit and who shall not, except with the consent of the Sponsor Indemnified
 Parties, be counsel to the Sponsor. If the Sponsor does not elect to assume
 the defense of any suit, it will

 

S2-9

	
  

 	
  

 
	
  

 	
 reimburse
 the Sponsor Indemnified Parties in the suit for the reasonable fees and
 expenses of any counsel retained by them.

 
	
  

 	
  

 
	
  

 	
           d.
 No indemnifying party, as described in paragraphs (a) and (b) above, shall,
 without the written consent of the AP Indemnified Party or the Sponsor
 Indemnified Party, as the case may be, effect the settlement or compromise
 of, or consent to the entry of any judgment with respect to, any pending or
 threatened action or claim in respect of which indemnification may be sought
 hereunder (whether or not the indemnified party is an actual or potential
 party to such action or claim) unless such settlement, compromise or judgment
 (i) includes an unconditional release of the AP Indemnified Party or Sponsor
 Indemnified Party, as the case may be, from all liability arising out of such
 action or claim and (ii) does not include a statement as to or an admission
 of fault, culpability or a failure to act, by or on behalf of any AP
 Indemnified Party or Sponsor Indemnified Party, as the case may be.

 
	
  

 	
  

 
	
  

 	
           e.
 The Authorized Participant shall not be liable to any AP Indemnified Party
 for any damages arising out of (i) mistakes or errors in data provided in
 connection with purchase or redemption transactions except for data provided
 by the Authorized Participant, or (ii) mistakes or errors by, or arising out
 of interruptions or delays of communications with, the Trustee or any AP
 Indemnified Party. 

 
	
  

 	
  

 
	
  

 	
           f.
 The indemnification provided for in Section 6.01(a) shall not apply to the
 extent any such losses, liabilities, damages, costs and expenses are incurred
 as a result of any fraud, gross negligence, bad faith or reckless or willful
 misconduct on the part of an AP Indemnified Party. The indemnification
 provided for in Section 6.01(b) shall not apply to the extent any such
 losses, liabilities, damages, costs and expenses are incurred as a result of
 any fraud, gross negligence, bad faith or reckless or willful misconduct on
 the part of a Sponsor Indemnified Party.

 
	
  

 	
  

 
	
  

 	
           f.
 The indemnity agreements contained in this Section 6.01 shall remain in full
 force and effect and shall survive any termination of this Agreement. The
 Sponsor and the Authorized Participant agree promptly to notify each other of
 the commencement of any Proceeding against it and against any of their
 officers or directors in connection with the issuance and sale of the Shares
 or in connection with the registration statement or the relevant Prospectus.

 

ARTICLE VII

MISCELLANEOUS

          Section
7.01. Commencement of Trading. The Authorized Participant may not submit
an Order prior to the effectiveness of the registration statement, or amendment
to the registration statement, filed with the Securities and Exchange
Commission and pursuant to which the Authorized Participant is identified as
such in the relevant Prospectus. 

[Signatures
Follow on Next Page]

S2-10

          IN
WITNESS WHEREOF, the Sponsor and the Trustee have
executed these Standard Terms as of the date set forth above.

	
  

 	
  

 	
  

 
	
 THE BANK OF NEW YORK MELLON,
 in its capacity as Trustee 

 
	
  

 
	
 By:

 
	
  

 	

 

 	
  

 
	
 Name: 

 
	
 Title: 

 
	
  

 
	
 ETF SECURITIES USA LLC,
 in its capacity as Sponsor 

 
	
  

 
	
 By:

 
	
  

 	

 

 	
  

 
	
 Name: 

 
	
 Title: 

 

S2-11

SCHEDULE 3-A: AUTHORIZED REPRESENTATIVES OF
THE AUTHORIZED 

PARTICIPANT

Certificate of Authorized Representatives of the Authorized Participant

          The
following are the names, titles, signatures, phone numbers, and email addresses
of all persons (each, an “Authorized Representative”) authorized to give
instructions relating to any activity contemplated by the Authorized
Participant Agreement between [AUTHORIZED PARTICIPANT], The Bank of New York
Mellon and ETF Securities USA LLC dated [DATE] (the “Agreement”) or any other
notice, request or instruction on behalf of the Authorized Participant pursuant
to the Agreement.

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Name:

 	
  

 	
  

 	
 Name:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
 Title:

 	
  

 	
  

 	
 Title:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
 Signature:

 	
  

 	
  

 	
 Signature:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
 Phone:

 	
  

 	
  

 	
 Phone:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
 Email:

 	
  

 	
  

 	
 Email:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Name:

 	
  

 	
  

 	
 Name:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
 Title:

 	
  

 	
  

 	
 Title:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
 Signature:

 	
  

 	
  

 	
 Signature:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
 Phone:

 	
  

 	
  

 	
 Phone:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
 Email:

 	
  

 	
  

 	
 Email:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Name:

 	
  

 	
  

 	
 Name:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
 Title:

 	
  

 	
  

 	
 Title:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
 Signature:

 	
  

 	
  

 	
 Signature:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
 Phone:

 	
  

 	
  

 	
 Phone:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
 Email:

 	
  

 	
  

 	
 Email:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 

          The
undersigned, [AP’S AUTHORIZED SIGNATORY], does hereby certify that the persons
listed above have been duly authorized to act as Authorized Representatives
pursuant to the Authorized Participant Agreement.

	
  

 	
  

 	
  

 
	
 By:

 
	
  

 	

 

 	
  

 
	
 Name: 

 
	
 Title: 

 
	
 Date:

 

S3-1

SCHEDULE
3-B: ADDENDUM TO CERTIFICATE OF AUTHORIZED 

REPRESENTATIVES OF THE AUTHORIZED PARTICIPANT

 [On AP’s
Firm Letterhead]

 [DATE]

Attn: Jarvis Joseph 

The Bank of New York Mellon 

2 Hanson Place — Floor 9th 

Brooklyn, NY 11217

New York

	
  

 	
  

 
	
 Re:

 	
 Addendum to the
 Certificate of Authorized Representatives for [AUTHORIZED PARTICIPANT] under
 the Authorized Participant Agreement for the relevant Trusts sponsored by ETF
 Securities USA LLC dated [DATE] (the “Agreement”)

 
	

 

 

Ladies and Gentlemen:

          Pursuant
to the Agreement, the following are the names, titles, signatures, phone
numbers, and email addresses of additional Authorized Representatives of [AUTHORIZED
PARTICIPANT] (the “AP”) authorized to give instructions relating to any
activity contemplated by the Agreement or any other notice, request or instruction
on behalf of the AP pursuant to the Agreement. This list of Authorized
Representatives is an addendum and adds further Authorized Representatives to
the AP’s most recently executed certificate (entitled “Certificate of
Authorized Representatives of the Authorized Participant”). 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Name:

 	
  

 	
  

 	
 Name:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
 Title:

 	
  

 	
  

 	
 Title:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
 Signature:

 	
  

 	
  

 	
 Signature:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
 Phone:

 	
  

 	
  

 	
 Phone:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
 Email:

 	
  

 	
  

 	
 Email:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Name:

 	
  

 	
  

 	
 Name:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
 Title:

 	
  

 	
  

 	
 Title:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
 Signature:

 	
  

 	
  

 	
 Signature:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
 Phone:

 	
  

 	
  

 	
 Phone:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 
	
 Email:

 	
  

 	
  

 	
 Email:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 

          Please
provide PIN numbers for those listed above.

          The
undersigned, [AP’S AUHTORIZED SIGNATORY], does hereby certify that the persons
listed above have been duly authorized to act as Authorized Representatives
pursuant to the Authorized Participant Agreement.

	
  

 	
  

 	
  

 
	
 By:

 
	
  

 	

 

 	
  

 
	
 Name: 

 
	
 Title: 

 
	
 Date:

 

S3-2Exhibit 10.1 

JPMORGAN CHASE BANK, N.A.

and

THE BANK OF NEW YORK MELLON

solely in its capacity as trustee of the ETFS Precious Metals Basket Trust

and not individually

	
  

 
	

 

 
	
  

 
	
 ALLOCATED ACCOUNT AGREEMENT 

 
	
  

 
	

 

 

THIS AGREEMENT is
made with effect on and from [       ], 2010 

BETWEEN 

	
  

 	
  

 
	
 (1)

 	
 JPMORGAN CHASE BANK, N.A, whose principal
 place of business in England is at 125 London Wall, London EC2Y 5AJ (the “Custodian”); and 

 
	
  

 	
  

 
	
 (2)

 	
 THE BANK OF NEW YORK MELLON, a New York banking corporation, solely
 in its capacity as trustee of the ETFS Precious Metals Basket 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 below). 

 

INTRODUCTION 

	
  

 	
  

 
	
 (1)

 	
 The Trustee
 has agreed to act as trustee for the Shareholders of the Shares pursuant to
 the Trust Agreement. 

 
	
  

 	
  

 
	
 (2)

 	
 Shares may
 be issued by the Trust against delivery of Bullion made by way of payment for
 the issue of such Shares. The Trustee has agreed that Bullion delivered to it
 on subscription for Shares will be paid into the Metal Accounts. 

 
	
  

 	
  

 
	
 (3)

 	
 The
 Custodian has agreed to transfer Bullion from the Allocated Account into the
 Unallocated Account pursuant to the terms of this Agreement. 

 
	
  

 	
  

 
	
 (4)

 	
 The Trustee
 has agreed that the Allocated Account will be established by the Trustee in
 its name (for each Shareholder pursuant to the Trust Agreement), and that the
 Trustee will have the sole right to give instructions for the making of any
 payments out of the Allocated 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 intermediaries, controls, or is controlled
 by, or is under common control with the Custodian; 

 

1

	
  

 	
  

 
	
  

 	
 “Allocated Account” means the loco London
 allocated Bullion account, number [ ], or the loco Zurich allocated Bullion
 account, number [ ], each established in the name of the Trustee with the
 Custodian pursuant to this Agreement; 

 
	
  

 	
  

 
	
  

 	
 “Authorised 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 Authorised
 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 Allocated Account Bullion debited from the Unallocated Account;
 

 
	
  

 	
  

 
	
  

 	
 “Bullion” means any and all gold, silver,
 platinum and palladium in physical form complying with the Rules of the
 Relevant Association to be delivered to or 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; 

 
	
  

 	
  

 
	
  

 	
 “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 gold, silver, platinum and
 palladium markets 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; 

 
	
  

 	
  

 
	
  

 	
 “Metal Accounts” means the Allocated
 Account and the Unallocated Account; 

 
	
  

 	
  

 
	
  

 	
 “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 statement initially filed on Form
 S-1, Registration Number 333-164769 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 February 8, 2010 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 Form” means a notice in the form
 prescribed from time to time by the Trust requesting Redemption of Shares; 

 

2

	
  

 	
  

 	
  

 
	
  

 	
 “Redemption Obligations” means the
 obligation of the Trust on Redemption of a Share to make payment or deliver
 Bullion to the relevant Authorized Participant or Shareholder in accordance
 with the Conditions;

 
	
  

 	
  

 
	
  

 	
  “Relevant Association” means: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 in respect
 of gold and silver, the London Bullion Market Association or its successors;
 and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 in respect
 of platinum and palladium, the London Platinum and Palladium Market 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 or the activities of a Sub-Custodian; 

 
	
  

 	
  

 
	
  

 	
 “Shareholder” means the beneficial owner
 of one or more Shares; 

 
	
  

 	
  

 
	
  

 	
 “Shares” means the units of fractional
 undivided beneficial interest in and ownership of the Trust which are issued
 by the Trust, named “ETFS Physical PM Basket Shares” and created pursuant to
 and constituted by the Trust Agreement; 

 
	
  

 	
  

 
	
  

 	
 “Sponsor” means ETF USA Securities LLC,
 its successors and assigns and any successor Sponsor appointed pursuant to
 the Trust Agreement; 

 
	
  

 	
  

 
	
  

 	
 “Sub-Custodian” means a sub-custodian,
 agent or depository (including an entity within the Custodian’s corporate
 group) appointed by the Custodian pursuant to clause 8 to perform any of the
 Custodian’s duties under this Agreement including the custody and safekeeping
 of Bullion; 

 
	
  

 	
  

 
	
  

 	
 “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 Precious Metals
 Basket Trust formed pursuant to the Trust Agreement; 

 
	
  

 	
  

 
	
  

 	
 “Trust Agreement” means the Depositary
 Trust Agreement of the ETFS Precious Metals Basket Trust dated on or
 [              ],
 2010, as amended from time to time, between ETF Securities USA LLC, as Sponsor,
 and The Bank of New York Mellon, as Trustee; 

 
	
  

 	
  

 
	
  

 	
 “Unallocated Account” means the loco
 London unallocated Bullion account, number
 [              ],
 or loco Zurich the unallocated Bullion, account number
 [              ],
 each established in the name of the Trustee with the Custodian pursuant to
 the Unallocated Account Agreement; 

 
	
  

 	
  

 
	
  

 	
 “Unallocated Account Agreement” means the
 Unallocated Account Agreement dated on or about
 [              ],
 2010 between the Trustee and the Custodian pursuant to which the Unallocated
 Account is established and operated; 

 

3

	
  

 	
  

 
	
  

 	
 “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; 

 
	
  

 	
  

 
	
  

 	
 “Withdrawal Date” means the London/Zurich
 Business Day on which the Trustee wishes a withdrawal of Bullion from the
 Allocated 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 platinum and palladium markets are
 open for the transaction of business in Zurich; and 

 
	
  

 	
  

 
	
  

 	
 “Zurich Sub-Custodian” means any firm
 selected by the Custodian to hold platinum or palladium on behalf of the
 Custodian in the firm’s Zurich vault premises on a segregated basis, in the
 manner provided in clauses 7.2, 7.3 and 8.3 and whose appointment has been
 approved in writing by the Sponsor (such approval not to be unreasonably
 withheld). 

 
	
  

 	
  

 
	
 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. 

 	
 ALLOCATED ACCOUNT 

 
	
  

 	
  

 
	
 2.1

 	
 Opening Allocated Account:
 The Custodian shall open and maintain the Allocated Account in the name of
 the Trustee (in its capacity as trustee for the Shareholders). 

 
	
  

 	
  

 
	
 2.2

 	
 Deposits and Withdrawals: The Allocated Account shall evidence
 and record deposits and withdrawals of Bullion made pursuant to the terms of
 this Agreement. 

 
	
  

 	
  

 
	
 2.3

 	
 Denomination of Allocated Account: The Allocated Account will hold
 deposits of Bullion and will be denominated in fine troy ounces to three
 decimal places. 

 
	
  

 	
  

 
	
 2.4

 	
 Reports: For each day which is a London/Zurich
 Business Day, by no later than the following London/Zurich Business Day, the
 Custodian will transmit to the Trustee a report showing the movement of
 Bullion into and out of the Allocated Account, identifying separately each
 transaction and the London/Zurich Business Day on which it occurred and
 providing sufficient information to identify each individual bar of Bullion
 held in the Allocated Account. 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 Allocated Account. 

 
	
  

 	
  

 
	
 2.5

 	
 Reversal of Entries:
 The Custodian shall reverse any provisional or erroneous entries to the
 Allocated Account which it discovers or of which it is notified with effect
 back-valued to the date upon which the final or correct entry (or no entry)
 should have been made. 

 
	
  

 	
  

 
	
 2.6

 	
 Provision of Information:
 The Custodian agrees that it will forthwith notify the Trustee in writing of
 any encumbrance of which it is aware is or is purported to have 

 

4

	
  

 	
  

 
	
  

 	
 been created
 over or in respect of the Allocated Account or any of the amounts standing to
 the credit thereof. 

 
	
  

 	
  

 
	
 2.7

 	
 Access: The
 Custodian will allow the Sponsor and the Trustee and their Bullion auditors
 (currently Inspectorate International Limited), and will procure that any
 Zurich Sub-Custodian that it appoints allows, 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. 

 
	
  

 	
  

 
	
 3.

 	
 DEPOSITS 

 
	
  

 	
  

 
	
 3.1

 	
 Procedure: The
 Custodian shall receive deposits of Bullion into the Allocated Account
 relating to the same kind of Bullion and having the same denomination as that
 (or one of those) to which the Allocated Account relates only pursuant to
 transfers from the Unallocated Account. 

 
	
  

 	
  

 
	
 3.2

 	
 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 and the Sponsor 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. 

 
	
  

 	
  

 
	
 3.3

 	
 Allocation:
 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. 

 
	
  

 	
  

 
	
 4.

 	
 WITHDRAWALS 

 
	
  

 	
  

 
	
 4.1

 	
 Procedure: The
 Trustee may at any time give instructions to the Custodian for the withdrawal
 of Bullion from the Allocated Account but only by way of de-allocation to the
 Unallocated Account or such other account as the Trustee may instruct
 (subject to clause 4.3 below). 

 
	
  

 	
  

 
	
 4.2

 	
 Notice Requirements:
 A confirmation from the Trustee to the Custodian, given in writing, that a
 valid Redemption Form has been lodged for Shares shall be deemed an
 instruction given under clause 4.1 unless otherwise notified in writing by
 the Trustee. Any other notice relating to a withdrawal of Bullion must be in
 writing. 

 
	
  

 	
  

 
	
 4.3

 	
 Right to amend procedure:
 The Custodian may amend the procedure for the withdrawal of Bullion 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 notification
 conditions of the preceding clause 3.2 and will be promptly notified to 

 

5

	
  

 	
  

 
	
  

 	
 the Sponsor
 and the Trustee, such notice to be given in advance of implementation
 whenever practicable. 

 
	
  

 	
  

 
	
 4.4

 	
 Specification of Bullion:
 The Custodian may specify the serial numbers of the bars to be withdrawn once
 it receives instructions from the Trustee to effect a withdrawal of Bullion
 pursuant to clause 4.1. The Custodian is entitled to select the Bullion to be
 made available to the Trustee; provided, however, that to the extent the
 Trustee provides specific serial numbers of bars for gold or silver and
 plates for platinum or palladium to be so selected, the Custodian will take
 reasonable efforts to select such Bullion as specified by the Trustee. The
 Custodian shall select Bullion in such ratio of gold, silver, platinum and
 palladium as designated by the Trustee. The Custodian may require more than
 two London/Zurich Business Days prior notice in the event that the Trustee
 does specify the serial numbers of bars to be withdrawn. 

 
	
  

 	
  

 
	
 4.5

 	
 Collection of Bullion:
 The Trustee agrees that in the normal course (which, for the avoidance of
 doubt, shall not include withdrawal in connection with the termination of
 this Agreement) withdrawal of Bullion from the Allocated Account shall be by
 way of de-allocation and subsequent credit of Bullion to the Unallocated
 Account. 

 
	
  

 	
  

 
	
 4.6

 	
 De-allocation: Following receipt by the Custodian of
 notice for the withdrawal of Bullion from the Allocated Account pursuant to
 clause 4.1, the Custodian shall de-allocate sufficient Bullion from the
 Allocated Account to credit the Unallocated Account in the amount required.
 The Trustee acknowledges that the process of de-allocation of Bullion for
 withdrawal and/or credit to the Unallocated Account may involve minimal
 adjustments to the weight of Bullion to be withdrawn to adjust such weight to
 the whole bars available. 

 
	
  

 	
  

 
	
 4.7

 	
 Risk: With the
 exception of any transfer pursuant to clause 4.2 of the Unallocated Account
 Agreement, where there is a shipment to or 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.

 
	
  

 	
  

 
	
 5.

 	
 INSTRUCTIONS 

 
	
  

 	
  

 
	
 5.1

 	
 Giving of Instructions:
 Only the Trustee shall have the right to give instructions to the Custodian
 for deposit of Bullion to or withdrawal of Bullion from the Allocated
 Account. All such instructions given by the Trustee to the Custodian shall be
 given in writing and signed by two Authorised Signatories of the Trustee. The
 Trustee shall notify the Custodian in writing of the names of the people who
 are authorised 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

 	
 Account not to be Overdrawn:
 The Allocated Account may not at any time have a debit balance thereon, and
 no instruction shall be valid to the extent that the effect thereof would be
 for the Allocated Account to have a debit balance thereon. 

 

6

	
  

 	
  

 
	
 5.3

 	
 Amendments:
 Once given, instructions continue in full force and effect until they are
 cancelled, amended or superseded. Notice of amendment shall have effect only
 after actual receipt by the Custodian. 

 
	
  

 	
  

 
	
 5.4

 	
 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. 

 
	
  

 	
  

 
	
 5.5

 	
 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), by a Sub-Custodian 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

 	
 Segregation of Bullion: The Custodian will be responsible for
 the safekeeping of the Bullion on the terms and conditions of this Agreement.
 The Custodian will segregate the Bullion from any Bullion which the Custodian
 owns or holds for others by making appropriate entries in its books and
 records and will require Sub-Custodians to segregate the Bullion from any
 Bullion which they own or hold for others by making appropriate entries in
 their books and records. The Custodian shall be 

 

7

	
  

 	
  

 
	
  

 	
 deemed to
 have required such segregation in relation to the Sub-Custodians named in
 clause 8.1. 

 
	
  

 	
  

 
	
 7.3

 	
 Ownership of Bullion: The Custodian will identify in its
 books that the Bullion belongs to the Trustee (on trust for the
 Shareholders). 

 
	
  

 	
  

 
	
 7.4

 	
 Location of Bullion:
 Subject to and in accordance with clause 8.1 and unless otherwise agreed between
 the parties, gold and silver must be held by the Custodian at its London
 vaulting premises and platinum and palladium must be held by the Custodian at
 its London vaulting premises or at the Zurich Sub-Custodian’s Zurich vaulting
 premises. The Custodian agrees that it shall use, or where applicable procure
 any Sub-Custodian to use, commercially reasonable efforts promptly to
 transport any Bullion held for the Trustee to these locations at the
 Custodian’s cost and risk. The Custodian agrees that all delivery and packing
 shall be in accordance with the Rules and Relevant Association good market
 practices. 

 
	
  

 	
  

 
	
 8.

 	
 SUB-CUSTODIANS 

 
	
  

 	
  

 
	
 8.1

 	
 Sub-Custodians:
 With the exception of the Zurich Sub-Custodians, which shall, for the
 avoidance of doubt, be governed by clause 8.3, the Custodian may employ
 Sub-Custodians solely for the temporary custody and safekeeping of Bullion
 until transported to the relevant 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 Bullion, 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. The Custodian will use
 reasonable care in selecting any Sub-Custodian. As of the date of this
 Agreement, the Sub-Custodians that the Custodian uses are: Bank of England,
 Barclays, Brinks Global Services, Credit Suisse, Deutsche Bank, HSBC, Scotia
 Mocatta, UBS and Via Mat International. The Custodian will notify each of the
 Trustee and the Sponsor if it selects any additional Sub-Custodian, or stops
 using any Sub-Custodian for such purpose. The receipt of notice by each of
 the Trustee and the Sponsor that the Custodian has selected a Sub-Custodian
 (including those named in this clause 8.1) shall not be deemed to limit the
 Custodian’s responsibility in selecting such Sub-Custodian. 

 
	
  

 	
  

 
	
 8.2

 	
 Liability:
 Except for the Custodian’s obligation to make commercially reasonable efforts
 to obtain delivery of Bullion from Sub-Custodians, 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 negligently or in
 bad faith. 

 
	
  

 	
  

 
	
 8.3

 	
 Zurich Sub-Custodians:
 The Custodian may employ Zurich Sub-Custodians for the custody and
 safekeeping of platinum and palladium in their Zurich vault premises. The
 Custodian will use reasonable care in selecting any Zurich Sub-Custodian. As
 of the date of this Agreement, the Zurich Sub-Custodian that the Custodian
 uses is UBS AG. The Custodian will notify each of the Trustee and the Sponsor
 if it selects any additional Zurich Sub-Custodian, or stops using any Zurich
 Sub-Custodian for such purpose. The receipt of notice by each of the Trustee
 and the Sponsor that the Custodian has selected a Zurich Sub-Custodian
 (including those named in this clause 

 

8

	
  

 	
  

 	
  

 
	
  

 	
 8.3) shall
 not be deemed to limit the Custodian’s responsibility in selecting such
 Zurich Sub-Custodian. Nothing in clause 8.2 shall limit the Custodian’s
 liability with respect to platinum or palladium held by a Zurich
 Sub-Custodian. In addition to the requirements of clauses 7.2 and 7.3, the
 Custodian shall require any Zurich Sub-Custodian to segregate the Bullion
 from any platinum and palladium which they hold for the Custodian and any
 other customers of the Custodian or the Zurich Sub-Custodian by making
 appropriate entries in their books and records. On entering into this
 Agreement and on the appointment of any subsequent Zurich Sub-Custodian, the
 Custodian shall give to such Zurich Sub-Custodian a notice in the form of
 Schedule 1 and ensure that such Zurich Sub-Custodian delivers to the
 Custodian (with a copy to the Trustee and the Sponsor) a countersigned copy
 of such notice prior to delivery of any Bullion to it. 

 
	
  

 	
  

 
	
 9.

 	
 REPRESENTATIONS 

 
	
  

 	
  

 
	
 9.1

 	
 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 deposit 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; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 the person
 entering into this Agreement on behalf of the Trustee has been duly
 authorised to do so; and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 this
 Agreement and the obligations created under it are binding upon and
 enforceable against the Trustee, as trustee of the Trust, 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. 

 
	
  

 	
  

 
	
 9.2

 	
 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 deposit 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 person
 entering into this Agreement on behalf of the Custodian has been duly
 authorised 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 

 

9

	
  

 	
  

 	
           and will not
 violate the terms of the Rules or any order, charge or agreement by which the
 Custodian is bound.

 
	
  

 	
  

 	
  

 
	
 10.

 	
 FEES AND EXPENSES 

 
	
  

 	
  

 
	
 10.1

 	
 Fees: For the
 Custodian’s services under this Agreement, the Trustee has procured the
 Sponsor’s written agreement, to which the Custodian has agreed, to pay the
 Custodian’s fee for services under this Agreement. 

 
	
  

 	
  

 
	
 10.2

 	
 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 (i) any relevant taxes and VAT, duties and other governmental
 charges, (ii) fees for storage and insurance of the Bullion and any fees and
 expenses of Sub-Custodians, which will be recovered under clause 10.1, and
 (iii) indemnification obligations of the Trustee under clause 12.5 which will
 be paid pursuant to the following sentence) 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 paid by the Sponsor under
 its agreement with the Custodian procured under this clause 10.2 (including
 any relevant taxes and VAT, duties, other governmental charges and indemnification
 claims of the Custodian payable by the Trustee pursuant to clause 12.5, but
 excluding fees for storage and insurance of the Bullion and any fees and
 expenses of Sub-Custodians, which will be recovered under clause 10.1)
 incurred by the Custodian in connection with the Bullion. 

 
	
  

 	
  

 
	
 10.3

 	
 Default Interest:
 If neither the Trustee nor the Sponsor, as the case may be, procures payment
 to the Custodian of any amount when it is due, the Custodian reserves the
 right to charge the relevant party interest (both before and after any
 judgement) on any such unpaid amount calculated at 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. 

 
	
  

 	
  

 
	
 10.4

 	
 Credit Balances: No interest or other amount will be
 paid by the Custodian on any credit balance on an Allocated Account. 

 
	
  

 	
  

 
	
 10.5

 	
 Recovery from Trust: 
 Amounts payable pursuant to this clause 10 shall not be debited from the
 Allocated 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 Allocated Account or to the Trustee
 individually in respect of any such amounts. 

 
	
  

 	
  

 
	
 11.

 	
 VALUE ADDED TAX 

 
	
  

 	
  

 
	
 11.1

 	
 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

	
  

 	
  

 
	
 11.2

 	
 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. 

 
	
  

 	
  

 
	
 12.

 	
 SCOPE OF RESPONSIBILITY

 
	
  

 	
  

 
	
 12.1

 	
 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
 the Custodian notifies the Trustee promptly after any discovery of such lost
 or damaged Bullion. 

 
	
  

 	
  

 
	
 12.2

 	
 No Duty or Obligation: 
 The Custodian is under no duty or obligation to make or take, or require any
 Sub-Custodian to make or take, any special arrangements or precautions beyond
 those required by the Rules or as specifically set forth in this Agreement. 

 
	
  

 	
  

 
	
 12.3

 	
 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 any such insurance policy or policies. Upon reasonable prior
 written notice, in connection with the preparation of the initial
 registration 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. 

 
	
  

 	
  

 
	
 12.4

 	
 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 organisation or failure to any such body,
 authority or 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 clause 12.4 so prevent the
 Custodian from performing its obligations. 

 
	
  

 	
  

 
	
 12.5

 	
 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 

 

11

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 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 10.2) 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. 

 
	
  

 	
  

 	
  

 	
  

 
	
 12.6

 	
 Third Parties: 
 Except with respect to the Trust, which shall be considered a beneficiary of
 this entire Agreement, and to the Sponsor, which shall be considered a
 beneficiary (as applicable) of clauses 2.7 and 12.3, the Custodian does not
 owe any duty or obligation or have any liability towards any person who is
 not a party to this Agreement. Except as set forth in this clause 12.6, this
 Agreement does not confer a benefit on any person who is not a party to it.
 The parties hereto 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, provided that the Sponsor may enforce its rights under clauses 2.7
 and 12.3. 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. 

 
	
  

 	
  

 	
  

 	
  

 
	
 13.

 	
 TERM AND TERMINATION 

 
	
  

 	
  

 	
  

 	
  

 
	
 13.1

 	
 Method:
 Subject to clause 13.2 below, either the Trustee or the Custodian may
 terminate this Agreement for any reason, including if the 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. 

 
	
  

 	
  

 	
  

 	
  

 
	
 13.2

 	
 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 13; provided that during such periods this
 Agreement may be terminated immediately upon written notice as follows: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (1)

 	
 by the
 Trustee, if the Custodian ceases to offer the services contemplated by this
 Agreement to its clients or proposes to withdraw from the Bullion business; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (2)

 	
 by the
 Trustee or the Custodian, if it becomes unlawful for the Custodian to be a
 party to this Agreement or to offer its services 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; 

 

12

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (3)

 	
 by the Custodian,
 if there is any event which, in the Custodian’s reasonable view, indicates
 the Trust’s insolvency or impending insolvency; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (4)

 	
 by the
 Trustee, if there is any event which, in the Trustee’s sole view, indicates
 the Custodian’s insolvency or impending insolvency; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (5)

 	
 by the
 Trustee, if the Trust is to be terminated; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (6)

 	
 by the
 Trustee or the Custodian, if the Unallocated Account Agreement ceases to be
 in full force and effect at any time. 

 
	
  

 	
  

 	
  

 	
  

 
	
 13.3

 	
 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 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. 

 
	
  

 	
  

 	
  

 	
  

 
	
 13.4

 	
 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. 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. 

 
	
  

 	
  

 	
  

 	
  

 
	
 13.5

 	
 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. 

 
	
  

 	
  

 	
  

 	
  

 
	
 14.

 	
 NOTICES

 
	
  

 	
  

 	
  

 	
  

 
	
 14.1

 	
 Transfer Notices: Subject
 to clause 5.1, any Transfer Notice shall be in writing in English and shall
 be marked “Urgent – This Requires Immediate Attention” and signed by or on
 behalf of the party giving it (or its duly authorised representative). Any
 Transfer Notice shall be sent either by facsimile 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. 

 
	
  

 	
  

 	
  

 	
  

 
	
 14.2

 	
 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 authorised 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 

 

13

	
  

 	
  

 
	
  

 	
 London/Zurich
 Business Days in the case of overseas post after despatch. Any General Notice
 sent by facsimile shall be deemed to have been given, made or served upon
 actual receipt by the recipient. 

 
	
  

 	
  

 
	
 14.3

 	
 The
 addresses and numbers of the parties for the purposes of clauses 14.1 and
 14.2 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

 
	
  

 	
  

 
	
 The Trustee:

 	
 The Bank of
 New York Mellon

 
	
  

 	
 2 Hanson
 Place

 
	
  

 	
 Brooklyn,
 New York 11217

 
	
  

 	
 Attention:
 Donald Guire

 
	
  

 	
 Facsimile:
 718-315-4927

 
	
  

 	
  

 
	
 or such
 other address or facsimile number as shall have been notified (in accordance
 with this clause) to the other party hereto. The address and numbers of the
 Sponsor for purposes of receiving notices under this Agreement is:

 
	
  

 	
  

 
	
 The Sponsor:

 	
 ETF
 Securities USA LLC

 
	
  

 	
 Ordnance
 House

 
	
  

 	
 31 Pier Road

 
	
  

 	
 St. Helier, Jersey

 
	
  

 	
 JE4 Channel
 Islands

 
	
  

 	
 Fax:
 +441534825335

 
	
  

 	
 Attention:
 US Fund Services

 

	
  

 	
  

 
	
 14.4

 	
 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. 

 
	
  

 	
  

 
	
 15.

 	
 GENERAL

 
	
  

 	
  

 
	
 15.1

 	
 Role of Trustee:
 The Trustee is a party to this Agreement 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 

 

14

	
  

 	
  

 
	
  

 	
 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. 

 
	
  

 	
  

 
	
 15.2

 	
 No Advice: The
 Custodian’s duties and obligations under this Agreement do not include
 providing the other party hereto with investment advice. In asking the
 Custodian to open and maintain the Allocated Account, the Trustee
 acknowledges that it is acting pursuant to the Trust Agreement and the
 Custodian shall not owe to 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 Allocated Account. 

 
	
  

 	
  

 
	
 15.3

 	
 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. 

 
	
  

 	
  

 
	
 15.4

 	
 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 party
 otherwise agrees in writing, except that consent is not required where the
 Custodian assigns, transfers or encumbers any right or obligation under this
 Agreement to its 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 Trust from assigning its rights hereunder to a Shareholder to the extent
 required for the Trust to fulfil its obligations under the Trust Agreement. 

 
	
  

 	
  

 
	
 15.5

 	
 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. 

 
	
  

 	
  

 
	
 15.6

 	
 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. 

 
	
  

 	
  

 
	
 15.7

 	
 Entire Agreement: This
 document represents the entire agreement between the parties hereto in
 respect of its subject matter save for any agreements made with fraudulent
 intent, and excludes any prior agreements or representations. This Agreement
 supersedes and replaces any prior existing agreement between the parties relating
 to the same subject matter. 

 
	
  

 	
  

 
	
 15.8

 	
 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. 

 

15

	
  

 	
  

 
	
 15.9

 	
 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, then the relevant obligations
 shall be performed on the next succeeding New York Business Day or
 London/Zurich Business Day, as applicable. 

 
	
  

 	
  

 
	
  

 	
  

 
	
 15.10

 	
 Prior Agreements:
 The Custodian or any member of the JPMorgan group of companies (the “JPMorgan Group”) may trade in Shares for
 its own account as principal, may have underwritten or may underwrite an
 issue of Shares or, 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 JPMorgan Group or persons associated with them in respect of any
 business transacted by them in all or any of the aforementioned securities or
 instruments. 

 
	
  

 	
  

 
	
 16.

 	
 GOVERNING LAW AND JURISDICTION 

 
	
  

 	
  

 
	
 16.1

 	
 Governing Law:
 This Agreement is governed by, and will be construed in accordance with, English
 law. 

 
	
  

 	
  

 
	
 16.2

 	
 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. 

 
	
  

 	
  

 
	
 16.3

 	
 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. 

 
	
  

 	
  

 
	
 16.4

 	
 Service of Process:
 Process by which any proceedings are begun may be served on a party by being
 delivered to the party’s 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

 
	
  

 	
 Facsimile
 No. +44 207 777 4915

 
	
  

 	
 Attention:
 Peter Smith – Global Commodities

 
	
  

 	
  

 
	
  

 	
 With a copy to:

 
	
  

 	
  

 
	
  

 	
 JPMorgan
 Chase Bank, N.A.

 
	
  

 	
 125 London
 Wall, 13th Floor

 

16

	
  

 	
  

 
	
  

 	
 London EC2Y

 
	
  

 	
 Facsimile
 No.: +44 (0)20 7325 8150

 
	
  

 	
 Attention:
 Legal Department-FX and Derivatives Group

 
	
  

 	
  

 
	
  

 	
 Trustee’s Address for service of process:

 
	
  

 	
  

 
	
  

 	
 The Bank of
 New York Mellon

 
	
  

 	
 One Wall
 Street

 
	
  

 	
 New York,
 New York 10286

 
	
  

 	
 Attention: Legal
 Department

 

17

	
  

 	
  

 
	
 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 Precious Metals Basket Trust and not individually by

 

	
  

 	
  

 
	
 Signature

 
	
  

 	

 

 
	
  

 	
  

 

	
  

 	
  

 
	
 Name

 
	
  

 	

 

 
	
  

 	
  

 

	
  

 	
  

 
	
 Title

 
	
  

 	

 

 

 [Signature Page to ETFS Precious Metals
Basket Allocated Account Agreement]

18

Schedule 1

Notice to Zurich Sub-Custodians 

	
  

 	
  

 
	
 From:

 	
 JPMorgan Chase Bank, N.A. 

 
	
  

 	
 125 London Wall 

 
	
  

 	
 London EC2Y 5AJ 

 
	
  

 	
  

 
	
 To:

 	
 [Zurich Sub-Custodian] 

 

Date: 

Dear Sirs 

	
  

 
	
 Allocated
 Account Agreement (the “Agreement”)

 dated _______________ between

 The Bank of New York Mellon (the “Trustee”)
 and

 JPMorgan Chase Bank, N.A. (the “Custodian”)

 
	
  

 
	

 

 

Reference is made to the
Agreement between us and the Trustee and to [ ] (the “Sub-Custodian”) General
Terms and Conditions Governing Custody Accounts agreed between us and the
Sub-Custodian. 

We hereby give you notice and
you hereby agree that the platinum or palladium (“Bullion”) that we may deliver
to you or arrange to be delivered to you in connection with the Agreement
belongs to the ETFS Precious Metals Basket Trust (the “Trust”) and/or the
Trustee (as trustee for the holders of certain securities of the Trust) and
that we have agreed to require you and you hereby agree to: (a) hold such
Bullion in Switzerland as Sub-Custodian, (b) to segregate the Bullion from any
platinum and palladium which you own or hold for others and (c) to segregate
the Bullion from any platinum and palladium which you hold for the Custodian
and any other customers of the Custodian, in each case by making appropriate
entries in your books and records. 

Please sign and return the
enclosed copy of this notice to us by way of your confirmation that you have
received this notice and will comply with the requirements of the above
paragraph. You may neither forward this Schedule 1 nor disclose its content to
any third party, except to the Trustee and ETF Securities USA LLC as the
Sponsor of the Trust. 

This letter is governed by
English law, without regard to the application of any choices of law rules. The
exclusive place of jurisdiction of disputes concerning this letter shall be
Zurich, Switzerland. 

The obligations between the
Trustee and the Custodian are governed by the Agreement, and the obligations
between the Custodian and the Sub-Custodian are governed by the individual
agreement among themselves. 

	
  

 	
  

 	
  

 
	
 Yours faithfully

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	

 

 	
  

 	
  

 
	
 for an on behalf of

 	
  

 	
  

 
	
 JPMorgan
 Chase Bank, N.A.

 	
  

 	
 Acknowledged and Agreed

 
	
  

 	
  

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 For and on behalf of
 [               ]

 

19

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