Document:

Exhibit 4.1

DEPOSITARY TRUST AGREEMENT

ETF SECURITIES USA LLC,

as Sponsor

and

THE BANK OF NEW YORK MELLON,

as Trustee

Depositary Trust Agreement

ETFS Asian Gold Trust

Dated as of [•], [•]

TABLE OF CONTENTS

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 
	
 Article I. DEFINITIONS AND RULES OF CONSTRUCTION

 	
 1

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 1.1

 	
  

 	
 Definitions

 	
 1

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 1.2

 	
  

 	
 Rules of Construction

 	
 5

 
	
  

 	
  

 	
  

 	
  

 
	
 Article II. CREATION AND DECLARATION OF
 TRUSTS; FORM OF CERTIFICATES; DEPOSIT OF GOLD; DELIVERY, REGISTRATION OF
 TRANSFER AND SURRENDER OF SHARES

 	
 6

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 2.1

 	
  

 	
 Creation and Declaration of Trust; Business of the Trust

 	
 6

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 2.2

 	
  

 	
 Form of Certificates; Book-Entry System; Transferability of Shares

 	
 6

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 2.3

 	
  

 	
 Deposit of Gold

 	
 8

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 2.4

 	
  

 	
 Delivery of Shares

 	
 9

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 2.5

 	
  

 	
 Registration and Registration of Transfer of Shares; Combination and
 Split-up of Certificates

 	
 9

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 2.6

 	
  

 	
 Surrender of Shares and Withdrawal of Trust Property

 	
 10

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 2.7

 	
  

 	
 Limitations on Delivery, Registration of Transfer and Surrender of
 Shares

 	
 11

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 2.8

 	
  

 	
 Lost Certificates, Etc.

 	
 11

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 2.9

 	
  

 	
 Cancellation and Destruction of Surrendered Certificates

 	
 11

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 2.10

 	
  

 	
 Splits and Reverse Splits of Shares

 	
 11

 
	
  

 	
  

 	
  

 	
  

 
	
 Article III. CERTAIN OBLIGATIONS OF REGISTERED OWNERS OF SHARES

 	
 12

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 3.1

 	
  

 	
 Liability of Registered Owner for Taxes and Other Governmental
 Charges

 	
 12

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 3.2

 	
  

 	
 Warranties on Deposit of Gold

 	
 12

 
	
  

 	
  

 	
  

 	
  

 
	
 Article IV. ADMINISTRATION OF THE TRUST

 	
 12

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 4.1

 	
  

 	
 Evaluation of Gold

 	
 12

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 4.2

 	
  

 	
 Responsibility of the Trustee for Evaluations

 	
 13

 

i

	
  

 	
  

 	
  

 	
  

 
	
 Section 4.3

 	
  

 	
 Trust Evaluation

 	
 13

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 4.4

 	
  

 	
 Cash Distributions

 	
 14

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 4.5

 	
  

 	
 Other Distributions

 	
 14

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 4.6

 	
  

 	
 Fixing of Record Date

 	
 14

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 4.7

 	
  

 	
 Payment of Expenses; Gold Sales

 	
 15

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 4.8

 	
  

 	
 Statements and Reports

 	
 16

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 4.9

 	
  

 	
 Further Provisions for Gold Sales

 	
 16

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 4.10

 	
  

 	
 Counsel

 	
 17

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 4.11

 	
  

 	
 Grantor Trust

 	
 17

 
	
  

 	
  

 	
  

 	
  

 
	
 Article V. THE TRUSTEE AND THE SPONSOR

 	
 17

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 5.1

 	
  

 	
 Maintenance of Office and Transfer Books by the Trustee

 	
 17

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 5.2

 	
  

 	
 Prevention or Delay in Performance by the Sponsor or the Trustee

 	
 18

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 5.3

 	
  

 	
 Obligations of the Sponsor and the Trustee

 	
 18

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 5.4

 	
  

 	
 Resignation or Removal of the Trustee; Appointment of Successor Trustee

 	
 22

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 5.5

 	
  

 	
 The Custodian

 	
 23

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 5.6

 	
  

 	
 Indemnification

 	
 24

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 5.7

 	
  

 	
 Charges of Trustee

 	
 25

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 5.8

 	
  

 	
 Charges of Sponsor

 	
 26

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 5.9

 	
  

 	
 Retention of Trust Documents

 	
 27

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 5.10

 	
  

 	
 Federal Securities Law Filings

 	
 27

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 5.11

 	
  

 	
 Prospectus Delivery

 	
 28

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 5.12

 	
  

 	
 Discretionary Actions by Trustee; Consultation

 	
 28

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 5.13

 	
  

 	
 Dissolution of the Sponsor Not to Terminate Trust

 	
 28

 
	
  

 	
  

 	
  

 	
  

 
	
 Article VI. AMENDMENT AND TERMINATION

 	
 28

 

ii

	
  

 	
  

 	
  

 	
  

 
	
 Section 6.1

 	
  

 	
 Amendment

 	
 28

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 6.2

 	
  

 	
 Termination

 	
 29

 
	
  

 	
  

 	
  

 	
  

 
	
 Article VII. MISCELLANEOUS

 	
 31

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 7.1

 	
  

 	
 Counterparts

 	
 31

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 7.2

 	
  

 	
 Third-Party Beneficiaries

 	
 31

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 7.3

 	
  

 	
 Severability

 	
 31

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 7.4

 	
  

 	
 Certain Matters Relating to Beneficial Owners

 	
 31

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 7.5

 	
  

 	
 Notices

 	
 32

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 7.6

 	
  

 	
 Agent for Service; Submission to Jurisdiction

 	
 33

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 7.7

 	
  

 	
 Governing Law

 	
 33

 

iii

DEPOSITARY TRUST AGREEMENT

          THIS
DEPOSITARY TRUST AGREEMENT dated as of [•], [•], between ETF SECURITIES USA
LLC, a Delaware limited liability company, as sponsor, and THE BANK OF NEW YORK
MELLON, a New York banking corporation, as trustee. 

W I T N E S S E T H:

          WHEREAS the
Sponsor desires to establish a trust, to be known as the “ETFS Asian Gold
Trust”, pursuant to the laws of the State of New York; and 

          WHEREAS the
Sponsor desires to establish the terms on which Gold (as herein defined) may be
deposited in the trust and provide for the creation of ETFS Physical Asian Gold
Shares in Baskets (as herein defined) representing fractional undivided
interests in the net assets of the trust and the execution and delivery of
Certificates (as herein defined) evidencing the ETFS Physical Asian Gold
Shares; and 

          WHEREAS the
Sponsor desires to provide for other terms and conditions upon which the trust
shall be established and administered, as hereinafter provided; 

          NOW,
THEREFORE, in consideration of the premises and of the mutual agreements herein
contained, the Sponsor and the Trustee hereby agree as follows: 

ARTICLE I.

DEFINITIONS AND RULES OF CONSTRUCTION

	
  

 	
  

 	
  

 
	
  

 	
 Section 1.1

 	
 Definitions.
 

 

          Except as
otherwise specified in this Depositary Trust Agreement or as the context may
otherwise require, the following terms have the respective meanings set forth
below for all purposes of this Depositary Trust Agreement. 

          “Adjusted
Net Asset Value” means the adjusted net asset value of the Trust as determined
under Section 4.3. 

          “Agreement”
means this Depositary Trust Agreement, as amended or supplemented in accordance
with its terms. 

          “Authorized
Participant” means a Person that, at the time of submitting a Purchase Order or
a Redemption Order (i) is a registered broker-dealer, (ii) is a DTC Participant
or an Indirect Participant and (iii) has in effect a valid Authorized
Participant Agreement. 

          “Authorized
Participant Agreement” means an agreement among the Trustee, the Sponsor and an
Authorized Participant that authorizes the Authorized Participant to submit
Purchase Orders and Redemption Orders under this Agreement. 

          “Basket”
means 50,000 Shares, except that the Trustee, in consultation with the Sponsor,
may from time to time increase or decrease the number of Shares comprising a
Basket. 

1

          “Basket
Gold Amount” is the amount of Gold that must be deposited for issuance of one
Basket or that is deliverable upon Surrender of one Basket. The Basket Gold
Amount will be determined as provided in Section 2.3(b). 

          “Benchmark
Price” means, as of any day, (i) such day’s London PM Fix; or (ii) other
publicly available price as the Sponsor may determine fairly represents the
commercial value of Gold held by the Trust. 

          “Beneficial
Owner” means any Person owning a beneficial interest in any Shares. 

          “Business
Day” means any day other than (i) a Saturday or Sunday or (ii) a day on which
the Exchange is not open for regular trading. 

          “Certificate”
means a certificate that is executed and delivered by the Trustee under this
Agreement evidencing Shares. 

          “CFTC”
means the Commodity Futures Trading Commission or any successor governmental agency
in the United States. 

          “Commission”
means the Securities and Exchange Commission of the United States or any
successor governmental agency in the United States. 

          “Corporate
Trust Office” means the office of the Trustee at which its depositary receipt
business is administered which, at the date of this Agreement, is located at
101 Barclay Street, New York, New York 10286. 

          “Custodian”
means the Initial Custodian and any substitute or additional Custodian
appointed by the Trustee at the direction of or as approved by the Sponsor as
provided in Section 5.5 and, where the context permits, any sub-custodians
employed by the Initial Custodian, or any such substitute or additional
Custodian. 

          “Custody
Agreements” shall mean the Trust Unallocated Account Agreement and the Trust
Allocated Account Agreement and any custody agreement entered into pursuant to
Section 5.5 with a substitute or additional Custodian. 

          “Delivery”
means (a) when used with respect to Gold, obtaining an acknowledgement from the
Custodian of a credit of Gold on an Unallocated Basis to the account of the
Person entitled to that delivery and (b) when used with respect to Shares, one
or more book-entry transfers of those Shares to an account or accounts at the
Depository designated by the Person entitled to such delivery for further
credit as specified by that Person. 

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

          “Depository”
means DTC and such other successor depository of Shares as may be selected by
the Sponsor and the Trustee as provided herein. 

2

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

          “DTC
Participant” means a Person that, pursuant to DTC’s governing documents, is
entitled to deposit securities with DTC in its capacity as a “participant”. 

          “Exchange”
means the exchange or other securities market on which the Shares are
principally traded, as specified from time to time by the Sponsor. 

          “Exchange
Act” has the meaning ascribed to such term in Section 4.8(b) hereof. 

          “Gold”
means (a) gold bullion that meets the requirements of “good delivery” under the
rules of the LBMA and (b) credit to an account on an Unallocated Basis
representing the right to receive gold bullion that meets the requirements of
part (a) of this definition. 

          “Indirect
Participant” means a Person that, by clearing securities through, or
maintaining a custodial relationship with, a DTC participant, has access to the
DTC clearing system. 

          “Initial
Custodian” means JPMorgan Chase Bank, N.A., as Custodian under the Custody
Agreements. 

          “Internal
Control Over Financial Reporting” has the meaning ascribed to such term in
Rules 13a-15(f) and 15(d)-15(f) adopted by the Commission under the Exchange
Act. 

          “LBMA”
means the London Bullion Market Association. 

          “London PM
Fix” means the afternoon session of the twice daily fix of the price of an
ounce of gold which starts at 3:00 PM London, England time and is performed in
London by the five members of the London gold fix. 

          “Net Asset
Value” means the net value of the Trust determined under Section 4.3. 

          “Net Asset
Value per Share” means the value of a Share determined under Section 4.3. 

          “Order
Cutoff Time” means, with respect to any Business Day, (i) 4:00 p.m. (New York
time) on such Business Day or (ii) another time agreed to by the Sponsor and
the Trustee and of which Registered Owners and all existing Authorized
Participants have been notified by the Trustee. 

          “Order
Date” means, with respect to a Purchase Order, the date specified in Section
2.3(a) and, with respect to a Redemption Order, the date specified in Section
2.6(a). 

          “Ounce”
means one troy ounce, equal to 1.0971428 ounces avoirdupois, with a minimum
fineness of 995.0 parts per 1,000 gold. 

          “Person”
means 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. 

3

          “Procedures”
means the procedures for Purchase Orders and Redemption Orders attached to the
Authorized Participant Agreement, as modified by the Trustee from time to time.

          “Purchase
Order” is defined in Section 2.3. 

          “Qualified
Bank” means a bank, trust company, corporation or national banking association
organized and doing business under the laws of the United States or any State
of the United States that is authorized under those laws to exercise corporate
trust powers and that (i) is a DTC Participant or a participant in such other
Depository as is then acting with respect to the Shares; (ii) unless counsel to
the Sponsor, the appointment of which is acceptable to the Trustee, determines
that the following requirement is not necessary for the exception under Section
408(m) of the Internal Revenue Code of 1986, as amended (the “Code”), to apply,
is a banking institution as defined in Section 408(n) of the Code and (iii)
had, as of the date of its most recent annual financial statements, an
aggregate capital, surplus and undivided profits of at least $150,000,000. 

          “Redemption
Order” is defined in Section 2.6. 

          “Registered
Owner” means the Person in whose name Shares are registered on the books of the
Trustee maintained for that purpose. 

          “Registrar”
means any bank or trust company that is appointed to register Shares and
transfers of Shares as herein provided. 

          “Shares”
means ETFS Physical Asian Gold Shares created under this Agreement, each
representing a fractional undivided ownership interest in the net assets of the
Trust, which interest shall equal a fraction, the numerator of which is 1 and
the denominator of which is the total number of Shares outstanding. 

          “Sponsor”
means ETF Securities USA LLC, a Delaware limited liability company, or its
successor. 

          “Surrender”
means, when used with respect to Shares, one or more book-entry transfers of
Shares to the Depository account of the Trustee. 

          “Trust”
means the ETFS Asian Gold Trust, the trust entity created by this Agreement. 

          “Trust
Allocated Account” shall mean the account maintained for the Trust by the
Initial Custodian pursuant to the Trust Allocated Account Agreement, or another
account maintained for the Trust by a successor Custodian on an allocated
basis, as the case may be. 

          “Trust
Allocated Account Agreement” shall mean the Allocated Account Agreement of even
date herewith between the Custodian and the Trustee the form of which is
attached as Exhibit B. 

          “Trust
Unallocated Account” shall mean the loco London account or the loco Singapore
account maintained for the Trust by the Initial Custodian pursuant to the Trust
Unallocated 

4

Account Agreement, or another account maintained for the Trust by a
successor Custodian on an Unallocated Basis, as the case may be 

          “Trust
Unallocated Account Agreement” shall mean the Unallocated Account Agreement of
even date herewith between the Custodian and the Trustee the form of which is
attached as Exhibit C. 

          “Trustee”
means The Bank of New York Mellon, a New York banking corporation, in its
capacity as trustee under this Agreement, or any successor as trustee under
this Agreement. 

          “Trust
Property” means the Gold that the Custodian credits to the Trust Allocated
Account and the Trust Unallocated Account in accordance with the Custody
Agreements, all other property held by the Custodian for the account of the
Trust and any cash or other property that is received by the Trustee in respect
thereof or which is otherwise being held by or for it under this Agreement. 

          “Unallocated
Basis” means that the Person in whose name Gold is so held is entitled to
receive delivery of Gold standing to the credit of that Person’s account, but
that Person has no ownership interest in any particular Gold that the custodian
maintaining that account owns or holds. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 1.2

 	
 Rules of
 Construction. 

 

          Unless the
context otherwise requires: 

                                   (i)
a term has the meaning assigned to it; 

                                   (ii)
an accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles as in effect in the
United States; 

                                   (iii)
“or” is not exclusive; 

                                   (iv)
the words “herein,” “hereof,” “hereunder” and other words of similar import
refer to this Agreement as a whole and not to any particular Article, Section
or other subdivision; 

                                   (v)
“including” means including without limitation; 

                                   (vi)
words in the singular include the plural and words in the plural include the
singular; and 

                                   (vii)
a term defined in any part of speech shall have the corresponding meaning when
capitalized and used herein in another part of speech. 

5

ARTICLE II.

CREATION AND DECLARATION OF TRUSTS;

FORM OF CERTIFICATES; DEPOSIT OF GOLD; 

DELIVERY, REGISTRATION OF TRANSFER AND SURRENDER OF SHARES

	
  

 	
  

 	
  

 
	
  

 	
 Section 2.1

 	
 Creation and Declaration of Trust; Business of the Trust.
 

 

                    (a)
The Trustee acknowledges that it has received confirmation from the Custodian
that the Custodian has received an initial deposit of Gold from [•], the
initial purchaser of the first Basket of Shares, and has credited such deposit
to the Trust Allocated Account and Trust Unallocated Account. The Trustee
declares that the initial deposit and all other Trust Property shall be owned
by the Trust and the Trustee as trustee thereof for the benefit of the
Registered Owners for the purposes of, and subject to and limited by the terms
and conditions set forth in, this Agreement. The trust created by this
Agreement shall be known as the “ETFS Asian Gold Trust”. 

                    (b)
The Trust shall not engage in any business or activities other than those
authorized by this Agreement or incidental and necessary to carry out the
duties and responsibilities set forth in this Agreement. Other than issuance of
the Shares, the Trust shall not issue or sell any certificates or other
obligations or, except as provided in this Agreement, otherwise incur, assume
or guarantee any indebtedness for money borrowed. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 2.2

 	
 Form of
 Certificates; Book-Entry System; Transferability of Shares.
 

 

                    (a)
The Certificates evidencing Shares shall be substantially in the form set forth
in Exhibit A annexed to this Agreement, with appropriate insertions,
modifications and omissions, as hereinafter provided. No Shares shall be
entitled to any benefits under this Agreement or be valid or obligatory for any
purpose unless a Certificate evidencing those Shares has been executed by the
Trustee by the manual or facsimile signature of a duly authorized signatory of
the Trustee and, if a Registrar (other than the Trustee) for the Shares shall
have been appointed, countersigned by the manual signature of a duly authorized
officer of the Registrar. The Trustee shall maintain books on which the
registered ownership of each Share and transfers, if any, of such registered
ownership shall be recorded. Certificates evidencing Shares bearing the manual
or facsimile signature of a duly authorized signatory of the Trustee and the
manual signature of a duly authorized officer of the Registrar, if applicable,
who was, at the time such Certificates were executed, a proper signatory of the
Trustee or Registrar, if applicable, shall bind the Trustee, notwithstanding
that such signatory has ceased to hold such office prior to the delivery of
such Certificates. 

                    (b)
The Certificates may be endorsed with or have incorporated in the text thereof
such legends or recitals or modifications not inconsistent with the provisions
of this Agreement as may be required by the Trustee or required to comply with
any applicable law or regulations thereunder or with the rules and regulations
of any securities exchange upon which Shares may be listed or to conform with
any usage with respect thereto, or to indicate any special limitations or
restrictions to which the Shares evidenced by a particular Certificate are
subject. 

6

                    (c)
The Sponsor and the Trustee will apply to DTC for acceptance of the Shares in
its book-entry settlement system. Shares deposited with DTC shall be evidenced
by one or more global Certificates which shall be registered in the name of
Cede & Co., as nominee for DTC, and shall bear the following legend: 

	
  

 
	
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN
 AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
 CORPORATION (“DTC”), TO THE AGENT AUTHORIZED BY THE ISSUER FOR REGISTRATION
 OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN
 THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
 AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
 OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
 DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
 TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
 CO., HAS AN INTEREST HEREIN. 

 

                    (d)
So long as the Shares are eligible for book-entry settlement with DTC and such
settlement is available, unless otherwise required by law, notwithstanding the
provisions of Sections 2.2(a) and (b), all Shares shall be evidenced by one or
more global Certificates the Registered Owner of which is DTC or a nominee of
DTC and (i) no Beneficial Owner of Shares will be entitled to receive a
separate Certificate evidencing those Shares, (ii) the interest of a Beneficial
Owner in Shares represented by a global Certificate will be shown only on, and
transfer of that interest will be effected only through, records maintained by
DTC or a DTC Participant or Indirect Participant through which the Beneficial
Owner holds that interest and (iii) the rights of a Beneficial Owner with
respect to Shares represented by a global Certificate will be exercised only to
the extent allowed by, and in compliance with, the arrangements in effect
between such Beneficial Owner and DTC or the DTC Participant or Indirect
Participant through which that Beneficial Owner holds an interest in Shares. So
long as DTC or another authorized Depository selected by the Sponsor or the
Trustee is the Registered Owner, the Trustee and the Sponsor may treat DTC or
such other Depository as the absolute owner of the Shares for all purposes
whatsoever, including without limitation, the payment of distributions, and the
giving of notices of redemption, tender and other matters with respect to the
Shares. 

                    (e)
If, at any time when Shares are evidenced by a global Certificate, DTC ceases
to make its book-entry settlement system available for such Shares, the Trustee
shall execute and deliver separate Certificates evidencing Shares to a
successor authorized Depository identified by the Sponsor and available to act,
or, if no successor Depository is identified and able to act, the Trustee shall
terminate the Trust in accordance with Section 6.2. 

                    (f)
Title to a Certificate evidencing Shares (and to the Shares evidenced thereby),
when properly endorsed or accompanied by proper instruments of transfer, shall
be transferable by delivery with the same effect as in the case of a negotiable
instrument under the laws of New York; provided, however, that the Trustee,
notwithstanding any notice to the contrary, may treat the Registered Owner of
Shares as the absolute owner thereof for the purpose 

7

of determining the person entitled to any distribution or to any notice
provided for in this Agreement and for all other purposes. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 2.3

 	
 Deposit of
 Gold. 

 

                    (a)
After the initial deposit of Gold in the Trust, the issuance and Delivery of
Shares will take place only in integral numbers of Baskets and in compliance
with the provisions of this Agreement, as supplemented by the Procedures, to the
extent those Procedures are consistent with this Agreement. Authorized
Participants wishing to acquire from the Trustee one or more Baskets must place
an order with the Trustee (a “Purchase Order”) no later than 3:59:59 p.m. (New
York time) on any Business Day. Purchase Orders received by the Trustee prior
to the Order Cutoff Time on a Business Day on which the Benchmark Price is
announced will have that Business Day as the Order Date. Purchase Orders
received by the Trustee on or after the Order Cutoff Time on a Business Day, or
on a Business Day on which the Benchmark Price is not announced, will have as
their Order Date the next Business Day on which the Benchmark Price is
announced. As consideration for each Basket acquired, Authorized Participants must
deposit with the Custodian, from an account of the Authorized Participant
maintained by the Custodian, or, if otherwise expressly permitted by the
Procedures, other LBMA-member custodian identified by the Authorized
Participant to the Custodian and the Trustee, the Basket Gold Amount determined
by the Trustee on the Order Date of the corresponding Purchase Order. Gold must
be Delivered to the Custodian by credit to the Trust Unallocated Account only,
with any Gold Delivered to the loco London Trust Unallocated Account to be
transferred by the Custodian to the loco Singapore Trust Unallocated Account in
accordance with the Trust Unallocated Account Agreement. 

                    (b)
The Trustee shall determine the Basket Gold Amount for each Business Day, and
the Trustee’s determination of the Basket Gold Amount and resolution of
questions concerning the composition of such Basket Gold Amount shall be final
and binding on all persons interested in the Trust. The initial “Basket Gold
Amount” is 5,000 Ounces of Gold. After the initial deposit, the “Basket Gold
Amount” for each Business Day shall be an amount of Gold equal to the result
obtained by subtracting the number of Ounces of Gold constituting the unpaid
expense accrual from the total Ounces of Gold in the Trust and then dividing by
the number of Baskets outstanding. Fractions of an Ounce of Gold included in
the Basket Gold Amount smaller than 0.001 Ounce shall be disregarded. The
Sponsor intends to publish, or may designate other persons to publish, for each
Business Day, the Basket Gold Amount. 

                    (c)
If the Trust Property includes money or any property other than Gold, no
deposits of Gold will be accepted until after a record date for distribution of
that money or property, or proceeds of that property, has passed. 

                    (d)
All deposited Gold shall be owned by the Trust and held for the Trust by the
Custodian. Pursuant to the Unallocated Account Agreement, the Custodian agrees
to use reasonable efforts to minimize the amount of Gold held for the Trust on
an Unallocated Basis at all times and the Custodian must allocate ownership of
Gold bars to the Trust such that no more than 430 Ounces of Gold are held on an
Unallocated Basis for the Trust at the end of each business day of the
Custodian. Cash and any assets of the Trust other than Gold shall be held by
the Trustee at such place and in such manner as the Trustee shall determine. 

8

	
  

 	
  

 	
  

 
	
  

 	
 Section 2.4

 	
 Delivery of
 Shares. 

 

          Upon
receipt by the Trustee of a Purchase Order and the other documents required as
above specified, if any, and a confirmation from the Custodian that the Basket
Gold Amount has been Delivered to the Custodian for each Basket of Shares
requested in such Purchase Order and the Custodian is holding that Gold for the
account of the Trust, the Trustee, subject to the terms and conditions of this
Agreement and the Procedures, shall Deliver to the Depositor the number of
Baskets of Shares issuable in respect of such deposit as requested in the corresponding
Purchase Order, but only upon payment to the Trustee of the fees and expenses
of the Trustee as provided in Section 5.7 and of all taxes and governmental
charges and fees payable in connection with such deposit, the transfer of the
Gold and the issuance and Delivery of the Shares. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 2.5

 	
 Registration
 and Registration of Transfer of Shares; Combination and Split-up of
 Certificates. 

 

                    (a)
The Trustee shall keep or cause to be kept a register of Registered Owners of
Shares and shall provide for the registration of Shares and the registration of
transfers of Shares. 

                    (b)
The Trustee, subject to the terms and conditions of this Agreement, shall
register transfers of ownership of Shares on its transfer books from time to
time, upon any surrender of a Certificate evidencing such Shares, by the
Registered Owner in person or by a duly authorized attorney, properly endorsed
or accompanied by proper instruments of transfer, and duly stamped as may be
required by the laws of the State of New York and of the United States of
America. Thereupon, the Trustee shall execute a new Certificate or Certificates
evidencing such Shares, and deliver the same to or upon the order of the Person
entitled thereto. 

                    (c)
The Trustee, subject to the terms and conditions of this Agreement, shall, upon
surrender of a Certificate or Certificates evidencing Shares for the purposes
of effecting a split-up or combination of that certificate or certificates,
execute and deliver one or more new Certificates evidencing those Shares. 

                    (d)
The Trustee may, with the written approval of the Sponsor (which approval shall
not be unreasonably withheld), appoint one or more co-transfer agents for the
purpose of effecting registration of transfers of Shares and combinations and
split-ups of Certificates at designated transfer offices on behalf of the
Trustee. In carrying out its functions, a co-transfer agent may require
evidence of authority and compliance with applicable laws and other
requirements by Registered Owners or Persons entitled to Shares and will be
entitled to protection and indemnity to the same extent as the Trustee. 

                    (e)
The previous paragraphs of this Section notwithstanding, so long as the Shares
are eligible for deposit with a Depository, the sole Registered Owners shall be
such Depository or its nominee and transfer of Shares shall be effected solely
by the Depository in accordance with its customary practices in effect from
time to time. 

9

	
  

 	
  

 	
  

 
	
  

 	
 Section 2.6

 	
 Surrender of
 Shares and Withdrawal of Trust Property. 

 

                    (a)
Upon Surrender of any integral number of Baskets for the purpose of withdrawal
of the amount of Trust Property represented thereby, and upon payment of the
fee of the Trustee in connection with the Surrender of Shares as provided in
Section 5.7 and payment of all taxes and charges payable in connection with
such Surrender and withdrawal of Trust Property, and subject to the terms and
conditions of this Agreement, the Procedures and the practices of the
Depository, an Authorized Participant acting on authority of the Registered
Owner of those Shares will be entitled to Delivery, in accordance with the
provisions of this Agreement, as supplemented by any procedures attached to an
applicable Authorized Participant Agreement, to the extent those procedures are
consistent with this Agreement, of the amount of Trust Property at the time
represented by such Baskets, including the Basket Gold Amounts corresponding to
such Baskets on the applicable Order Date (determined as provided below).
Authorized Participants wishing to redeem one or more Baskets must place an
order with the Trustee (a “Redemption Order”) no later than 3:59:59 p.m. (New
York time) on any Business Day. Redemption Orders received by the Trustee prior
to the Order Cutoff Time on a Business Day on which the Benchmark Price is
announced will have that Business Day as the Order Date. Redemption Orders
received by the Trustee on or after the Order Cutoff Time on any Business Day,
or on a Business Day on which the Benchmark Price is not announced, will have
as their Order Date the next Business Day on which the Benchmark Price is
announced. Gold will be Delivered by the Custodian only by credit to an account
of the Authorized Participant maintained by the Custodian or, if otherwise
expressly permitted by the Procedures, other LBMA-member custodian identified
by the Authorized Participant to the Custodian and the Trustee on an
Unallocated Basis. The Authorized Participant shall bear all risk of any loss
from the time the Gold is paid from the Trust Unallocated Account to the
Authorized Participant and neither the Trustee nor the Trust shall have any
liability for any such loss. 

                    (b)
The Trustee may require that a Certificate evidencing Shares Surrendered for
the purpose of withdrawal is properly endorsed in blank or accompanied by
proper instruments of transfer in blank. Upon a Surrender of an integral number
of Baskets of Shares and satisfaction of all the conditions for withdrawal of
Trust Property, the Trustee shall instruct the Custodian to Deliver, as
provided in the preceding paragraph, to or to the order of the Surrendering
Authorized Participant the amount of Gold represented by the Surrendered
Baskets of Shares and the Trustee shall pay or deliver to or to the order of
the Surrendering Authorized Participant the amount of any other Trust Property
represented by the Surrendered Baskets of Shares. Any Delivery of Gold other
than by credit to an account of the Authorized Participant maintained by the
Custodian on an Unallocated Basis will be at the expense and risk of the
Authorized Participant. The Trustee is not required to effect any physical
movement of Gold from one custody location to another to meet any request by a
Surrendering Authorized Participant as to where Gold will be Delivered. 

                    (c)
The Sponsor and the Trustee may, but shall have no obligation to, amend this
Agreement to provide for redemption of any quantity of Shares for quantities of
Gold that may be smaller or larger than a Basket Gold Amount by Beneficial
Owners who are not Authorized Participants. 

10

                    (d)
The Sponsor and the Trustee may, but shall have no obligation to, amend this
Agreement to provide for the sale of Gold to pay cash proceeds upon the
redemption of Shares. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 2.7

 	
 Limitations
 on Delivery, Registration of Transfer and Surrender of Shares.
 

 

                    (a)
As a condition precedent to the Delivery, registration of transfer, split-up,
combination or Surrender of any Shares or withdrawal of any Trust Property, the
Trustee or Registrar may require payment from the Depositor or the Authorized
Participant Surrendering the Shares of a sum sufficient to reimburse it for any
tax or other governmental charges and any stock transfer or registration fee
with respect thereto (including any such tax or charge and fee with respect to
any securities being withdrawn) and payment of any applicable fees as herein
provided, may require the production of proof satisfactory to it as to the
identity and genuineness of any signature and may also require compliance with
any regulations the Trustee may establish consistent with the provisions of
this Agreement, including, without limitation, this Section 2.7. 

                    (b)
The Delivery of Shares against deposits of Gold and the registration of
transfer of Shares may be suspended generally, or refused with respect to
particular requested Deliveries, during any period when the transfer books of
the Trustee are closed or if any such action is deemed necessary or advisable
by the Trustee or the Sponsor for any reason at any time or from time to time.
Except as otherwise provided elsewhere in this Agreement, the Surrender of
Shares for purposes of withdrawing Trust Property may be suspended only (i)
during any period in which regular trading on the Exchange is suspended or
restricted or the Exchange is closed (other than scheduled holiday or weekend
closings), or (ii) during an emergency as a result of which Delivery, disposal
or evaluation of Gold is not reasonably practicable. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 2.8

 	
 Lost
 Certificates, Etc. 

 

          The Trustee
shall execute and deliver a new Certificate of like tenor in exchange and
substitution for a mutilated Certificate upon cancellation thereof, or in lieu
of and in substitution for a destroyed, lost or stolen Certificate if the
Registered Owner thereof has (a) filed with the Trustee (i) a request for such
execution and delivery before the Trustee has notice that the Shares evidenced
by the Certificate have been acquired by a protected purchaser and (ii) a
sufficient indemnity bond, and (b) satisfied any other reasonable requirements
imposed by the Trustee. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 2.9

 	
 Cancellation
 and Destruction of Surrendered Certificates. 

 

          All
Certificates Surrendered to the Trustee shall be canceled by the Trustee. The
Trustee is authorized to destroy certificates so canceled. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 2.10

 	
 Splits and
 Reverse Splits of Shares. 

 

          If
requested in writing by the Sponsor, the Trustee shall effect a split or
reverse split of the Shares as of a record date set by the Trustee in
accordance with procedures determined by the Trustee and the Depository. 

          If so
directed by the Sponsor, the Trustee shall not distribute any fraction of a
Share in connection with a split or reverse split of the Shares. The Trustee
may sell the aggregated 

11

fractions of Shares that would otherwise be distributed in a split or
reverse split of the Shares or the amount of Trust Property that would be
represented by those Shares and distribute the net proceeds of those Shares or
that Trust Property to the Record Owners entitled to them. 

          The amount
of Trust Property represented by each Share and the Basket Gold Amount shall be
adjusted as appropriate as of the open of business on the Business Day
following the record date for a split or reverse split of the Shares. 

ARTICLE III.

CERTAIN OBLIGATIONS OF REGISTERED OWNERS OF SHARES

	
  

 	
  

 	
  

 
	
  

 	
 Section 3.1

 	
 Liability of
 Registered Owner for Taxes and Other Governmental Charges.
 

 

          If any tax
or other governmental charge shall become payable by the Trustee with respect
to any transfer or redemption of Shares, such tax or other governmental charge
shall be payable by the Registered Owner of such Shares to the Trustee. The
Trustee shall refuse to effect any registration of transfer of such Shares or
any withdrawal of Trust Property represented by such Shares until such payment
is made, and may withhold any distributions, or may sell for the account of the
Registered Owner thereof Trust Property or Shares, and may apply such
distributions or the proceeds of any such sale in payment of such tax or other
governmental charge, and the Registered Owner of such Shares shall remain
liable for any deficiency. The Trustee shall distribute any net proceeds of a
sale made under the preceding sentence that remain, after payment of the tax or
other governmental charge, to the Registered Owners entitled thereto as in the
case of a distribution in cash. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 3.2

 	
 Warranties
 on Deposit of Gold. 

 

          Every
Person depositing Gold under this Agreement shall be deemed thereby to
represent and warrant that the Gold meets the requirements to be Gold and
contains the required number of Ounces, that the person making such deposit is
duly authorized to do so and that, at the time of delivery, the Gold is free
and clear of any lien, pledge, encumbrance, right, charge or claim (other than
the rights created by this Agreement). All representations and warranties
deemed made under this Section 3.2 shall survive the deposit of Gold, Delivery
or Surrender of Shares or termination of this Agreement. 

ARTICLE IV.

ADMINISTRATION OF THE TRUST

	
  

 	
  

 	
  

 
	
  

 	
 Section 4.1

 	
 Evaluation
 of Gold. 

 

          As promptly
as practicable after 4:00 p.m. (New York time), on each Business Day, the
Trustee shall determine the value of the Gold held or receivable by the Trust
on the basis of the Benchmark Price for that day. If no Benchmark Price is
announced on a Business Day, the Trustee shall determine the value of the Gold
held or receivable by the Trust for that day on the basis of the most recently
announced Benchmark Price prior to the evaluation time. However, if the Sponsor
determines that the price specified in the two preceding sentences is
inappropriate as a basis for evaluation, it shall identify an alternative basis
for evaluation to be employed by the Trustee. Gold deliverable under a Purchase
Order shall be included in the evaluation beginning 

12

on the Order Date. Gold deliverable under a Redemption Order shall not
be included in the evaluation on and after the Order Date. Neither the Trustee
nor the Sponsor shall be liable to any Person for the determination that the
most recently announced Benchmark Price is not appropriate as a basis for
evaluation of the Gold held or receivable by the Trust or for any determination
as to the alternative basis for evaluation, provided that such determination is
made in good faith. 

          If the
Sponsor determines that Benchmark Price will have the meaning set forth in part
(ii) of the definition of that term, the Trustee shall give notice to the
Registered Owners, and the Trustee shall not apply the new definition of Benchmark
Price until 60 days after the date of that notice. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 4.2

 	
 Responsibility
 of the Trustee for Evaluations. 

 

          The
Sponsor, Depositors, Registered Owners and Beneficial Owners may rely on any
evaluation or determination of any amount made by the Trustee, and the Sponsor
shall have no responsibility for the accuracy thereof. The determinations made
by the Trustee under this Agreement shall be made in good faith upon the basis
of, and the Trustee shall not be liable for any errors contained in,
information reasonably available to it. The Trustee shall be under no liability
to the Sponsor, or to Depositors, Registered Owners or Beneficial Owners, for
errors in judgment; provided, however, that this provision shall not protect
the Trustee against any liability to which it would otherwise be subject by
reason of gross negligence or bad faith in the performance of its duties. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 4.3

 	
 Trust
 Evaluation. 

 

          As promptly
as practicable after completion of the evaluation required under Section 4.1 on
each Business Day, the Trustee shall subtract all accrued fees (other than the
fees accruing for such Business Day computed by reference to the value of the
Trust or its assets), expenses and other liabilities of the Trust from the total
value of the deposited Gold determined by the Trustee pursuant to Section 4.1
and all other assets of the Trust. The resulting figure is the “Adjusted Net
Asset Value” of the Trust. All fees accruing for any Business Day computed by
reference to the value of the Trust or its assets shall be calculated on the
Adjusted Net Asset Value calculated for such Business Day. The Trustee shall
subtract from the Adjusted Net Asset Value the amount of accrued fees so
computed and the resulting figure is the “Net Asset Value” of the Trust. The
Trustee shall also divide the Net Asset Value of the Trust by the number of
Shares outstanding as of the close of business on the date of the evaluation
then being made, which figure is the “Net Asset Value per Share.” All fees,
expenses and other liabilities of the Trust that are or will be incurred or
accrued through the close of business on a Business Day shall be included in
the calculations required by this Section 4.3 for that Business Day. Shares
deliverable under a Purchase Order shall be considered to be outstanding for
purposes of this Section 4.3 beginning on the Order Date. Shares deliverable
under a Redemption Order shall not be considered to be outstanding for purposes
of this Section 4.3 on and after the Order Date. 

          Adjusted
Net Asset Value, Net Asset Value and Net Asset Value per Share shall be
computed in accordance with generally accepted accounting principles in the
United States. Any estimate of the expenses and liabilities of the Trust for
purposes of the computations 

13

required by this Section made by the Trustee in good faith shall be
conclusive upon all Persons interested in the Trust, and no revision or
correction in any computation made under this Agreement will be required by
reason of any difference in amounts estimated from those actually paid. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 4.4

 	
 Cash
 Distributions. 

 

          Whenever
the Trustee distributes any cash, the Trustee shall distribute the amount
available for the distribution to the Registered Owners entitled thereto, in
proportion to the number of Shares held by them respectively; provided,
however, that in the event that the Trustee shall be required to withhold and
does withhold from such cash an amount on account of taxes, the amount
distributed to the Registered Owners shall be reduced accordingly. The Trustee
shall distribute only such amount, however, as can be distributed without
attributing to any Registered Owner a fraction of one cent. Any such fractional
amounts shall be rounded down to the nearest whole cent and so distributed to
Registered Owners entitled thereto. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 4.5

 	
 Other
 Distributions. 

 

          Whenever
the Trustee receives any property in respect of Trust Property other than cash
proceeds of a sale of Trust Property (including any claim that accrues in favor
of the Trust on account of any loss of deposited Gold or other Trust Property),
the Trustee shall cause the securities or other property received by it to be
distributed to the Registered Owners entitled thereto, in proportion to the
number of Shares held by them respectively, after deduction or upon payment of
the expenses of the Trustee, in any manner that the Trustee may deem lawful,
equitable and feasible for accomplishing such distribution; provided, however,
that if in the opinion of the Trustee such distribution cannot be made
proportionately among the Registered Owners entitled thereto, or if for any
other reason (including, but not limited to, any requirement that the Trustee
withhold an amount on account of taxes or other governmental charges or that
securities must be registered under the Securities Act of 1933 in order to be
distributed to Registered Owners) the Trustee deems such distribution not to be
lawful and feasible, the Trustee shall adopt such method as it deems lawful,
equitable and feasible for the purpose of effecting such distribution, after
deduction or upon payment of the expenses of the Trustee, including, but not
limited to, the public or private sale of the securities or property thus
received, or any part thereof, and the net proceeds of any such sale shall be
distributed by the Trustee to the Registered Owners entitled thereto as in the
case of a distribution received in cash. The Trustee shall not be liable for
any loss or depreciation resulting from any sale or other disposition of
property made by the Trustee pursuant to the Sponsor’s instruction or otherwise
made by the Trustee in good faith. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 4.6

 	
 Fixing of
 Record Date. 

 

          Whenever
any distribution will be made, or whenever the Trustee receives notice of any
solicitation of proxies or consents from Registered Owners, or whenever for any
reason there is split, reverse split or other change in the outstanding Shares,
or whenever the Trustee shall find it necessary or convenient in respect of any
matter, the Trustee, in consultation with the Sponsor, shall fix a record date
for the determination of the Registered Owners who shall be (i) entitled to
receive such distribution or the net proceeds of the sale thereof, (ii) entitled
to give such proxies 

14

or consents in respect of any such solicitation or (iii) entitled to
act in respect of any other matter for which the record date was set. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 4.7

 	
 Payment of
 Expenses; Gold Sales. 

 

                    (a)
The following charges are or may be accrued and paid by the Trust: 

                              (i)
the service fee payable to the Sponsor as set forth in Section 5.8; 

                              (ii)
expenses of the Trust not assumed by the Sponsor pursuant to Section 5.3(g); 

                              (iii)
taxes and other governmental charges; 

                              (iv)
expenses and costs of any extraordinary services performed by the Trustee or
the Sponsor on behalf of the Trust or action taken by the Trustee or the
Sponsor to protect the Trust or the interests of Registered Owners; 

                              (v)
indemnification of the Trustee as provided in Section 5.6(a); and 

                              (vi)
indemnification of the Sponsor as provided in Section 5.6(b). 

                    (b)
Subject to paragraph (d) of this Section, the Trustee will endeavor to sell the
smallest amounts of Gold needed to pay expenses in order to minimize the
Trust’s holdings of assets other than Gold. 

          The Trustee
shall, when directed by the Sponsor, and, in the absence of such direction,
may, in its discretion, sell Gold in such quantity and at such times, as may be
necessary to permit payment of expenses under this Agreement. The Trustee shall
endeavor to sell Gold at such times and in the smallest amounts required to
permit payment of expenses as they come due without producing sale proceeds in
excess of the amount required for payment of expenses, it being the intention
to avoid or minimize the Trust’s holdings of assets other than Gold. If the
Trustee cannot sell Gold in the precise amount required for the payment of
expenses as they come due, and the Sponsor shall have agreed to advance funds
for such expenses as authorized hereby, the Trustee shall sell the maximum
amount of Gold which it can sell without producing excess proceeds. The Sponsor
is authorized and may, but is not required to, pay on behalf of the Trust the
amount of such expenses remaining unpaid immediately after such Gold sale;
provided, however, that the Trust shall accrue a liability, without interest,
to the Sponsor for reimbursement of such expense amounts so paid by the Sponsor
until such amounts can be wholly repaid in Ounces of Gold delivered to the
Sponsor in the same manner as, together with, and in addition to, the next
payment of the fees of the Sponsor pursuant to paragraph (d) of this Section.
In the event such reimbursement of the Sponsor cannot be wholly repaid in
Ounces of Gold at the next payment of the Sponsor’s fee, the Trust shall
continue to accrue, without interest, the amount of its reimbursement
obligation to the Sponsor (together with any other reimbursement obligations to
the Sponsor) until such reimbursement amounts can be wholly repaid in Ounces of
Gold on a payment date for the Sponsor’s fee. Neither the Trustee nor the
Sponsor shall have any liability for loss or depreciation resulting from sales
of Gold so made. The Trustee shall not be liable or responsible in any way for
depreciation or loss incurred by 

15

reason of any sale made pursuant to the Sponsor’s direction or
otherwise in accordance with this Section. 

                    (c)
If at any time and from time to time, the Trustee and Sponsor determine that
the amount of cash included in the Trust Property exceeds the anticipated
expenses of the Trust during the following month, the Trustee shall distribute
the excess to the Registered Owners under Section 4.4. 

                    (d)
Payment of the fees of the Sponsor provided in Section 5.8(a) hereof and the
reimbursement of expenses paid by the Sponsor pursuant to paragraph (b) of this
Section shall be made by delivery to an account maintained by the Custodian for
the Sponsor on an Unallocated Basis, monthly on the first Business Day of the month
in respect of fees payable in respect of the prior month, of that number of
Ounces of Gold which shall equal (i) the daily accrual of the Sponsor’s fee for
such prior month calculated at the Benchmark Price for the day of accrual and
(ii) the amount of any outstanding expense reimbursement obligation calculated
at the Benchmark Price available on the date of the Trust’s payment of such
reimbursement obligation. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 4.8

 	
 Statements
 and Reports. 

 

                    (a)
After the end of each fiscal year and within the time period required by
applicable laws, rules and regulations, at the Sponsor’s expense, the Trustee
shall send to the Registered Owners at the end of such fiscal year, an annual
report of the Trust containing financial statements that will be prepared by
the Trustee and audited by independent accountants designated by the Sponsor
and such other information as may be required by such laws, rules and
regulations or otherwise, or which the Sponsor determines shall be included.
The Trustee may distribute the annual report by any means acceptable to the
Registered Owners. 

                    (b)
The Trustee shall provide the Sponsor with such certifications, supporting
documents and other evidence regarding the Internal Control Over Financial
Reporting established and maintained by the Trust, and used by the Trustee in
connection with its preparation of the financial statements of the Trust, as
may be reasonably necessary in order to enable the Sponsor to prepare and file
or furnish to the Commission any certifications regarding such matters which
may be required to be included with the Trust’s periodic reports under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”). 

                    (c)
The fiscal year of the Trust shall initially be the period ending December 31
of each year. The Sponsor shall have the continuing right to select an
alternate fiscal year. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 4.9

 	
 Further
 Provisions for Gold Sales. 

 

          In addition
to selling Gold in accordance with Section 4.7, the Trustee shall sell Gold
whenever any one or more of the following conditions exists: 

                    (a)
the Sponsor has notified the Trustee that such sale is required by applicable
law or regulation; or 

16

                    (b)
this Agreement has been terminated and the Trust Property is to be liquidated
in accordance with Section 6.2. 

          When
selling Gold, the Trustee shall endeavor to place orders with dealers (which
may include the Custodian) as directed by the Sponsor, or in the absence of
such direction, with dealers through which the Trustee may reasonably expect to
obtain a favorable price and good execution of orders. The Custodian may be the
purchaser at the Benchmark Price. 

          The Trustee
and the Sponsor shall not be liable or responsible in any way for depreciation
or loss incurred by reason of any sale made pursuant to this Section 4.9. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 4.10

 	
 Counsel.
 

 

          The Sponsor
may from time to time employ counsel to act on behalf of the Trust and perform
any legal services in connection with the Gold and the Trust, including any
legal matters relating to the possible disposition or acquisition of any Gold.
The fees and expenses of such counsel shall be paid by the Sponsor. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 4.11

 	
 Grantor
 Trust. 

 

          Nothing in
this Agreement, any agreement with a Custodian, or otherwise, shall be
construed to give the Trustee the power to vary the investment of the
Beneficial Owners within the meaning of Section 301.7701-4(c) under the Code or
any similar or successor provision of the regulations under the Code, nor shall
the Sponsor give the Trustee any direction that would vary the investment of
the Beneficial Owners. However, the Trustee shall not be liable to any Person
for any failure of the Trust to qualify as a grantor trust under the Code or
any comparable provision of the laws of any State or other jurisdiction where
that treatment is sought, except that this sentence shall not limit the
Trustee’s responsibility for the administration of the Trust in accordance with
this Agreement. 

ARTICLE V.

THE TRUSTEE AND THE SPONSOR

	
  

 	
  

 	
  

 
	
  

 	
 Section 5.1

 	
 Maintenance
 of Office and Transfer Books by the Trustee. 

 

                    (a)
Until termination of this Agreement in accordance with its terms, the Trustee
shall maintain facilities for the execution and Delivery, registration,
registration of transfers and Surrender of Shares in accordance with the
provisions of this Agreement. 

                    (b)
The Trustee shall keep a copy of this Agreement and books for the registration
of Shares and registration of transfers of Shares which at all reasonable times
shall be open for inspection by the Registered Owners. 

                    (c)
The Trustee may, and at the reasonable written request of the Sponsor shall,
close the transfer books at any time or from time to time if such action is
deemed necessary or advisable in the reasonable judgment of the Trustee or the
Sponsor. 

17

                    (d)
If any Shares are listed on one or more stock exchanges in the United States,
the Trustee shall act as Registrar or, with the written approval of the Sponsor
(which approval shall not be unreasonably withheld), appoint a registrar or one
or more co-registrars for registry of such Shares in accordance with any
requirements of such exchange or exchanges. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 5.2

 	
 Prevention
 or Delay in Performance by the Sponsor or the Trustee.
 

 

          Neither the
Sponsor nor the Trustee nor any of their respective directors, employees,
agents or affiliates shall incur any liability to any Registered Owner,
Beneficial Owner or Depositor if, by reason of any provision of any present or
future law or regulation of the United States or any other country, or of any
governmental or regulatory authority or stock exchange, or by reason of any act
of God or war or terrorism or other circumstances beyond its control, the
Sponsor or the Trustee is prevented or forbidden from, or would be subject to
any civil or criminal penalty on account of, or is delayed in, doing or performing
any act or thing which by the terms of this Agreement it is provided shall be
done or performed and accordingly the Sponsor or the Trustee does not do that
thing or does that thing at a later time than would otherwise be required. The
Sponsor and the Trustee will not incur any liability to any Registered Owner or
Beneficial Owner or Depositor by reason of any non-performance or delay in the
performance of any act or thing which by the terms of this Agreement it is
provided may be done or performed, or by reason of any exercise of, or failure
to exercise, any discretion provided for in this Agreement. 

	
  

 	
  

 	
  

 
	
  

 	
 Section 5.3

 	
 Obligations
 of the Sponsor and the Trustee. 

 

                    (a)
Neither the Sponsor nor the Trustee assumes any obligation nor shall either of
them be subject to any liability under this Agreement to any Registered Owner
or Beneficial Owner or Depositor (including, without limitation, liability with
respect to the worth of the Trust Property), except that each of them agrees to
perform its obligations specifically set forth in this Agreement without gross
negligence, willful misconduct or bad faith. 

                    (b)
Neither the Sponsor nor the Trustee shall be under any obligation to prosecute
any action, suit or other proceeding in respect of any Trust Property or in
respect of the Shares on behalf of a Registered Owner, Beneficial Owner,
Depositor or other Person. 

                    (c)
Neither the Sponsor nor the Trustee shall be liable for any action or
non-action by it in reliance upon the advice of or information from legal
counsel, accountants, any Depositor, any Registered Owner or any other person
believed by it in good faith to be competent to give such advice or
information. 

                    (d)
(i) The Trustee shall not be liable for any acts or omissions made by a
successor Trustee whether in connection with a previous act or omission of the
Trustee or in connection with any matter arising wholly after the resignation
of the Trustee, provided that in connection with the issue out of which such
potential liability arises the Trustee performed its obligations without gross
negligence, willful misconduct or bad faith while it acted as Trustee. 

                          (ii)
The Sponsor is authorized to negotiate the terms of the Authorized Participant
Agreement to be entered into with each Authorized Participant and shall have no
liability for any loss or damage incurred by the Trust resulting from any such
agreement 

18

negotiated in good faith. The Trustee shall have no liability with
respect to the negotiation of the terms of any Authorized Participant Agreement
or the form of any Authorized Participant Agreement (other than the Trustee’s
due execution, delivery and performance thereof). The terms of an Authorized
Participant Agreement shall not adversely affect the duties, rights and
responsibilities of the Trustee unless the Trustee expressly consents thereto,
which consent shall be evidenced by the Trustee’s execution and delivery of
such Authorized Participant Agreement. 

                    (e)
The Trustee and the Sponsor shall have no obligation to comply with any
direction or instruction from any Registered Owner or Beneficial Owner or
Depositor regarding Shares except to the extent specifically provided in this
Agreement. 

                    (f)
The Trustee shall be a fiduciary under this Agreement; provided, however, that
the fiduciary duties and responsibilities and liabilities of the Trustee shall
be limited by, and shall be only those specifically set forth in, this
Agreement. Without limiting the foregoing, all duties, rights, privileges and
liabilities of the Trustee set forth in this Agreement are subject to the
following: 

                              (i)
The Trustee shall not be under any obligation to appear in, prosecute or defend
any action that in its opinion may involve it in expense or liability, unless
it shall be furnished with reasonable security and indemnity against such
expense or liability. Subject to the foregoing, the Trustee shall, in its
discretion, undertake such action as it may deem necessary at any and all times
to protect the Trust and the rights and interest of all Beneficial Owners
pursuant to the terms of this Agreement. 

                              (ii)
Trust Assets of the Trust, exclusive of Gold or cash, shall be held by the
Trustee either directly or through the Federal Reserve/ Treasury Book Entry
System for United States and federal agency securities (the “Book Entry
System”), DTC, or through any other clearing agency or similar system (a
“Clearing Agency”), if available. The Trustee shall have no responsibility and
shall not be liable for ascertaining or acting upon any calls, conversions,
exchange offers, tenders, interest rates changes, or similar matters relating to
securities held at the Depository or with any Clearing Agency unless the
Trustee shall have received actual and timely written notice of the same, nor
shall the Trustee have any responsibility or liability for the actions or
omissions to act of the Book Entry System, the Depository or any Clearing
Agency. All moneys held by the Trustee hereunder shall be held by it, without
interest thereon or investment thereof, as a deposit for the account of the
Trust. Such monies held hereunder shall be deemed segregated by maintaining
such monies in an account or accounts for the exclusive benefit of the Trust.
The Trustee may also employ custodians for Trust assets other than Gold,
agents, attorneys, accountants, auditors and other professionals and shall not
be answerable for the default or misconduct of any such custodians, agents,
attorneys, accountants, auditors and other professionals if such custodians,
agents, attorneys, accountants, auditors or other professionals shall have been
selected with reasonable care. 

                              (iii)
If at any time the Trustee is served with any judicial or administrative order,
judgment, decree, writ or other form of judicial or administrative process that
in any way affects the Trust or its property (including but not limited to
orders of attachment or garnishment or other forms of levies or injunctions or
stays relating to the transfer of any assets of the Trust), the Trustee is
authorized to comply therewith in any manner that it or legal 

19

counsel of its own choosing deems appropriate; however, the Trustee to
the extent practicable will inform the Sponsor of such order, judgment, decree,
writ or other form of judicial or administrative process that in any way
affects the Trust and consult in good faith with the Sponsor as to the course
of action by the Trustee. If the Trustee complies with any such judicial or
administrative order, judgment, decree, writ or other form of judicial or
administrative process, the Trustee shall not be liable to any of the parties
hereto or to any other person or entity even though such order, judgment,
decree, writ or process may be subsequently modified or vacated or otherwise
determined to have been without legal force or effect. 

                              (iv)
In no event shall the Trustee be liable for acting in accordance with or
conclusively relying upon any instruction, notice, demand, certificate or
document (a) from the Sponsor or a Custodian, or any entity acting on behalf of
either, which the Trustee believes is given pursuant to or is authorized by
this Agreement or a Custody Agreement, respectively; or (b) from or on behalf
of any Authorized Participant which the Trustee believes is given pursuant to
or is authorized by an Authorized Participant Agreement (provided that the
Trustee has complied with the verification procedures specified in the
Authorized Participant Agreement); for any indirect, consequential, punitive or
special damages, regardless of the form of action and whether or not any such
damages were foreseeable or contemplated; or for an amount in excess of the
value of the assets of the Trust. The Trustee may consult with legal counsel of
its own choosing as to any matter relating to this Agreement and the Trustee
shall not incur any liability in acting in good faith in accordance with any
advice from such counsel. The expense of such counsel shall be paid as provided
in Section 5.7(b) and (c), as applicable. 

                              (v)
The Trustee shall be entitled to rely conclusively upon any order, judgment,
certification, demand, notice, instrument or other writing delivered to it
under this Agreement without being required to determine the authenticity or
the correctness of any fact stated therein or the propriety or validity or the
service thereof. The Trustee may act in conclusive reliance upon any instrument
or signature reasonably believed by it to be genuine and may assume that any
person purporting to give receipt or advice or to make any statement or execute
any document in connection with the provisions of this Agreement or any
Authorized Participant Agreement has been duly authorized to do so, provided,
however, that where a list of authorized officials of a person and their
signatures are on file with the Trustee, the Trustee shall compare such manual
signatures to the signature on any such documents. Such requirement shall not
apply to “personal identification numbers” or “PINS” or other forms of
electronic security devices which function as a proxy for a manual signature. 

                              (vi)
The Trustee shall not be responsible for or in respect of the recitals herein,
the validity or sufficiency of this Agreement, the Custody Agreements, any
Authorized Participant Agreement or any other custody or other agreement entered
into by the Trustee at the direction or with the approval of the Sponsor or
otherwise in connection with the Trustee’s administration of the Trust, or for
the due execution hereof by the Sponsor or of the Custody Agreements by the
Initial Custodian, or for the due execution of any other agreement entered into
by the Trustee in connection with the administration of the Trust by any party
thereto other than the Trustee. 

                              (vii)
The Trustee shall not be responsible in any respect for the form, execution,
validity, value, collectability or genuineness of documents, instruments or
securities 

20

deposited with or delivered to or held by it under this Agreement, or
for any description therein, or for the identity, authority or rights of
persons executing or delivering or purporting to execute or deliver any such
document, instrument or security. 

                              (viii)
At any time the Trustee may request an instruction in writing in English from
the Sponsor or an Authorized Participant with respect to any action which the
Sponsor or an Authorized Participant is authorized to direct the Trustee
hereunder, or under the Custody Agreements, any Authorized Participant
Agreement or any other agreement entered into by the Trustee in connection with
the Trustee’s administration of the Trust, and may, at its own option, include
in such request the course of action it proposes to take and the date on which
it proposes to act, regarding any matter arising in connection with its duties
and obligations under any such agreement. The Trustee shall not be liable for
acting in accordance with such a proposal on or after the date specified
therein, provided that the specified date shall be at least three (3) Business
Days after the Sponsor or Authorized Participant receives the Trustee’s request
for instructions and its proposed course of action, and provided further that,
prior to so acting, the Trustee has not received the written instructions
requested. 

                              (ix)
When the Trustee acts on any information, instructions, communications
(including communications with respect to the delivery of securities or the
wire transfer of funds) sent by telex, facsimile, email or other form of
electronic or data transmission, the Trustee, absent gross negligence, shall
not be responsible or liable in the event such communication is not an
authorized or authentic communication of the party sending it or is not in the
form the party sent or intended to send (whether due to fraud, distortion or
otherwise), provided that this paragraph shall not limit the Trustee’s
obligation to obtain such confirmations as may be specified in this Agreement
or any Authorized Participant Agreement. The Trustee shall be indemnified as
provided in Section 5.6 hereof against any loss, liability, claim or expense
(including legal fees and expenses) it may incur in acting in accordance with
any such communication. 

                              (x)
The Trustee may construe any provision of this Agreement that it believes to be
ambiguous or inconsistent with any other provisions hereof, and any reasonable
construction of any such provision hereof by the Trustee in good faith shall be
binding upon the parties hereto, each Authorized Participant and all Beneficial
Owners. In the event of any ambiguity or inconsistency or any other uncertainty
in any notice, instruction or other communication received by the Trustee under
this Agreement, the Trustee shall notify the Sponsor and the giver thereof, and
may, in its sole discretion, refrain from taking any action other than to
retain possession of the property of the Trust, unless the Trustee receives
such further written instructions, from the Sponsor or otherwise, that
eliminate such ambiguity, inconsistency or uncertainty. 

                              (xi)
The Trustee shall have no responsibility for the contents of any writing of the
arbitrators or any third party that may be used as a means to resolve disputes
among third parties with respect to their interest in the Trust, Trust Property
or Shares and may conclusively rely without any liability upon the contents
thereof. 

                              (xii)
In no event shall the Trustee be personally liable for any taxes or other
governmental charges imposed upon or in respect of the Gold or its custody,
moneys or 

21

other assets from time to time held hereunder, or on the income
therefrom or the sale or proceeds of sale thereof, or upon it as Trustee
hereunder or upon or in respect of the Trust or the Shares, which it may be
required to pay under any present or future law of the United States of America
or of any other taxing authority having jurisdiction in the premises. For all
such taxes and charges and for any expenses, including counsel’s fees, which
the Trustee may sustain or incur with respect to such taxes or charges, the
Trustee shall be reimbursed and indemnified out of the assets of the Trust and
the payment of such amounts shall be secured by a lien on the Trust. This
paragraph shall survive notwithstanding any termination of this Agreement and
the Trust or the resignation or removal of the Trustee. 

                              (xiii)
The Trustee shall not be answerable for the default of the Initial Custodian or
any Custodian employed at the direction of the Sponsor or selected by the
Trustee with reasonable care. The Trustee may also employ custodians for Trust
assets other than Gold, agents, attorneys, accountants, auditors and other
professionals and shall not be answerable for the default or misconduct of any
such custodians, agents, attorneys, accountants, auditors and other
professionals if such custodians, agents, attorneys, accountants, auditors or
other professionals shall have been selected with reasonable care. The fees and
expenses charged by such agents, attorneys, accountants, auditors or other
professionals, exclusive of fees for services to be performed by the Trustee,
shall be paid as provided in Section 5.7(b) and 5.7(c), as applicable. Fees
paid for custody of assets other than Gold shall be an expense of the Trustee. 

                              (xiv)
The Trustee in its individual or any other capacity may own or hold Shares, or
be an underwriter or dealer in respect of Shares, and may deal in any manner
with the same with the same rights and powers as if it were not the Trustee
hereunder. 

                    (g)
The Sponsor shall be responsible for all organizational expenses of the Trust,
and for the following administrative and marketing expenses of the Trust: fees
for the Trustee’s ordinary services and reimbursement of its out-of-pocket
expenses as provided in Section 5.7(b), the Custodian’s fee and expenses
reimbursable to a Custodian pursuant to a Custody Agreement (including, for
avoidance of doubt, any fees paid to the Initial Custodian under the Trust
Allocated Account Agreement and Trust Unallocated Account Agreement but
excluding taxes, other governmental charges and Custodian indemnification
obligations assumed by the Trustee in the Custody Agreements), listing fees of
the Exchange, registration fees charged by the Commission, printing and mailing
costs, audit fees and expenses and legal fees and expenses not in excess of
$100,000 per year. 

	
 

	
 

	
 

	
 

	
Section 5.4

	
Resignation
or Removal of the Trustee; Appointment of Successor Trustee.

                    (a)
The Trustee may at any time resign as Trustee hereunder by written notice of
its election so to do, delivered to the Sponsor, and such resignation shall
take effect upon the appointment of a successor Trustee and its acceptance of
such appointment as hereinafter provided. 

                    (b)
The Sponsor may remove the Trustee in its discretion by written notice
delivered to the Trustee in the manner provided in Section 7.5 at least 90 days
prior to the fifth anniversary of the date of this Agreement or, thereafter, by
written notice delivered to the Trustee at least 90 days prior to the last day
of any subsequent three-year period. 

22

                    (c)
If at any time the Trustee 

                              (i)
ceases to be a Qualified Bank, 

                              (ii)
is in material breach of its obligations under this Agreement and fails to cure
such breach within 30 days after receipt of written notice from the Sponsor or
Registered Owners acting on behalf of at least 25% of the outstanding Shares
specifying such default and requiring the Trustee to cure such default, or 

                              (iii)
fails to consent to the implementation of an amendment to the Trust’s initial
Internal Control Over Financial Reporting deemed necessary by the Sponsor and,
after consultations with the Sponsor, the Sponsor and the Trustee fail to
resolve their differences regarding such proposed amendment, the Sponsor,
acting on behalf of the Registered Owners, may remove the Trustee by written
notice delivered to the Trustee in the manner provided in Section 7.5, and such
removal shall take effect upon the appointment of a successor Trustee and its
acceptance of such appointment as hereinafter provided. 

                    (d)
If the Trustee acting hereunder resigns or is removed, the Sponsor, acting on
behalf of the Registered Owners, shall use its reasonable efforts to appoint a
successor Trustee, which shall be a Qualified Bank. Every successor Trustee
shall execute and deliver to its predecessor and to the Sponsor, acting on
behalf of the Registered Owners, an instrument in writing accepting its
appointment hereunder, and thereupon such successor Trustee, without any
further act or deed, shall become fully vested with all the rights, powers,
duties and obligations of its predecessor; but such predecessor, nevertheless,
upon payment of all sums due it and on the written request of the Sponsor,
acting on behalf of the Registered Owners, shall execute and deliver an
instrument transferring to such successor all rights and powers of such
predecessor hereunder, shall duly assign, transfer and deliver all right, title
and interest in the Trust Property to such successor, and shall deliver to such
successor a list of the Registered Owners of all outstanding Shares. The Sponsor
or any such successor Trustee shall promptly mail notice of the appointment of
such successor Trustee to the Registered Owners. 

                    (e)
Any corporation into which the Trustee may be merged, consolidated or converted
in a transaction in which the Trustee is not the surviving corporation shall be
the successor of the Trustee without the execution or filing of any document or
any further act. During the 90-day period following the effectiveness of a
merger, consolidation or conversion described in the preceding sentence, the
Sponsor may, by written notice to the Trustee, remove the Trustee and designate
a successor Trustee in compliance with the provisions of subsection (c) above. 

	
 

	
 

	
 

	
 

	
Section 5.5

	
The
Custodian. 

                    (a)
The Trustee is hereby directed to enter into the Trust Allocated Account
Agreement and the Trust Unallocated Account Agreement with the Initial
Custodian. The Initial Custodian will be subject to the directions of the
Trustee as provided in such Custody Agreements, and will be responsible solely
to it and to Beneficial Owners to the extent UK law requires. If upon the
resignation of any Custodian there would be no Custodian acting hereunder, the
Trustee shall, promptly after receiving such notice of such resignation,
appoint a 

23

substitute custodian or custodians selected by the Sponsor pursuant to
custody agreements approved by the Sponsor (provided, however, that the rights
and duties of the Trustee hereunder and under the Custody Agreements shall not
be materially altered without its consent), each of which shall thereafter be a
Custodian hereunder. When directed by the Sponsor or if the Trustee in its
discretion determines that it is in the best interest of the Registered Owners
to do so and with the written approval of the Sponsor (which approval shall not
be unreasonably withheld or delayed), the Trustee shall appoint a substitute or
additional custodian or custodians, which shall thereafter be one of the
Custodians hereunder. After the date of this Agreement, the Trustee shall not
enter into or amend any Custody Agreement with a Custodian without the written
approval of the Sponsor (which approval shall not be unreasonably withheld or
delayed). When instructed by the Sponsor, the Trustee shall demand that a
Custodian deliver such of the Gold held by it as is requested of it to any
other Custodian or such substitute or additional custodian or custodians
directed by the Sponsor. In connection with such delivery the Trustee will,
solely if and in the manner directed by the Sponsor, cause the Gold to be
weighed or assayed and any such weighing and assay shall be an expense of the
Trust pursuant to Section 4.7(a)(ii) hereof. The Trustee shall have no
liability for any delivery of Gold or weighing or assaying of delivered Gold
directed by the Sponsor pursuant to the preceding provisions of this paragraph
and in the absence of such direction shall have no obligation to effect such a
delivery or to cause the delivered Gold to be weighed, assayed or otherwise
validated. Each such substitute or additional custodian shall, forthwith upon
its appointment, enter into a Custody Agreement in form and substance approved
by the Sponsor. 

                    (b)
The Trustee shall have no obligation to monitor the activities of any Custodian
other than to receive and review such reports of the Gold held for the Trust by
such Custodian and of transactions in Gold held for the account of the Trust
made by such Custodian pursuant to the Custody Agreements. The accounts and
operations of each Custodian shall be audited or examined by accountants or
other inspectors selected by the Sponsor at such times as directed by the
Sponsor as permitted by the Custody Agreements. In no event shall the Trustee
be liable for (i) any loss or damage resulting from the actions or omissions of
any Custodian or loss or damage to the Gold while in the possession of, or in
transit to or from, any Custodian, (ii) the amount, validity or adequacy of
insurance maintained by any Custodian, (iii) any defect in Gold held by a
Custodian, (iv) any failure of Gold to conform to the requirements of “good
delivery” under the rules of the LBMA, or (v) any failure of Gold to conform to
a description thereof provided by the Custodian to the Trustee. 

                    (c)
Upon the appointment of any successor Trustee hereunder, each Custodian then
acting hereunder shall forthwith become, without any further act or writing,
the agent hereunder of such successor Trustee and the appointment of such
successor Trustee shall in no way impair the authority of each Custodian
hereunder; but the successor Trustee so appointed shall, nevertheless, on the
written request of any Custodian, execute and deliver to such Custodian all
such instruments as may be proper to give to such Custodian full and complete
power and authority as agent hereunder of such successor Trustee. 

	
 

	
 

	
 

	
 

	
Section 5.6

	
Indemnification.

                    (a)
The Trustee, its directors, employees and agents (each, a “Trustee Indemnified
Party”) shall be indemnified from the Trust and held harmless against any loss,

24

liability or expense (including, but not limited to, the reasonable
fees and expenses of counsel) arising out of or in connection with the
performance of its obligations under this Agreement and under each other
agreement entered into by the Trustee in furtherance of the administration of
the Trust (including, without limiting the scope of the foregoing, the Custody
Agreements and any Authorized Participant Agreement, including the Trustee’s
indemnification obligations thereunder) or by reason of the Trustee’s
acceptance of the Trust incurred without (1) gross negligence, bad faith,
willful misconduct or willful malfeasance on the part of such Trustee
Indemnified Party in connection with the performance of its obligations under
this Agreement or any such other agreement or any actions taken in accordance
with the provisions of this Agreement or any such other agreement or (2)
reckless disregard on the part of such Trustee Indemnified Party of its obligations
and duties under this Agreement or any such other agreement. Such indemnity
shall include payment from the Trust of the costs and expenses incurred by such
Trustee Indemnified Party in defending itself against any claim or liability in
its capacity as Trustee. Any amounts payable to a Trustee Indemnified Party
under this Section 5.6(a) may be payable in advance or shall be secured by a
lien on the Trust. 

                    (b)
The Sponsor and its members, managers, directors, officers, employees,
affiliates (as such term is defined under the Securities Act of 1933, as
amended) and subsidiaries (each, a “Sponsor Indemnified Party”) shall be
indemnified from the Trust and held harmless against any loss, liability or
expense (including, but not limited to, the reasonable fees and expenses of
counsel) arising out of or in connection with the performance of its
obligations under this Agreement and under each other agreement entered into by
the Sponsor, in furtherance of the administration of the Trust (including,
without limiting the scope of the foregoing, Authorized Participant Agreements
to which the Sponsor is a party, including the Sponsor’s indemnification
obligations thereunder) or any actions taken in accordance with the provisions
of this Agreement incurred without (1) gross negligence, bad faith, willful
misconduct or willful malfeasance on the part of such Sponsor Indemnified Party
in connection with the performance of its obligations under this Agreement or
any such other agreement or any actions taken in accordance with the provisions
of this Agreement or any such other agreement or (2) reckless disregard on the
part of such Sponsor Indemnified Party of its obligations and duties under this
Agreement. Such indemnity shall include payment from the Trust of the costs and
expenses incurred by such Sponsor Indemnified Party in defending itself against
any claim or liability in its capacity as Sponsor. Any amounts payable to a
Sponsor Indemnified Party under this Section 5.6(b) may be payable in advance
or shall be secured by a lien on the Trust. The Sponsor may, in its discretion,
undertake any action which it may deem necessary or desirable in respect of
this Agreement and the rights and duties of the parties hereto and the
interests of the Registered Owners and, in such event, the legal expenses and
costs of any such actions shall be expenses and costs of the Trust and the
Sponsor shall be entitled to be reimbursed therefor by the Trust. 

                    (c)
The indemnities provided by this section shall survive notwithstanding any
termination of this Agreement and the Trust or the resignation or removal of
the Trustee or the Sponsor, respectively. 

	
 

	
 

	
 

	
 

	
Section 5.7

	
Charges of
Trustee. 

                    (a)
Each Depositor, and each person surrendering Shares for the purpose of
withdrawing Trust Property, shall pay to the Trustee a fee of $500 per
transaction for the 

25

Delivery of Shares pursuant to Section 2.4 and the Surrender of Baskets
of Shares pursuant to Section 2.6 or 6.2 (or such other fee as the Trustee,
with the prior written consent of the Sponsor, may from time to time announce).

                    (b)
The Trustee is entitled to receive from the Sponsor fees for its ordinary
services and reimbursement for its out-of-pocket expenses in accordance with
written agreements between the Sponsor and the Trustee. Should the Sponsor fail
to pay the same, the Trustee shall be authorized to charge the same to the
Trust to the extent of amounts which could be charged to the Trust under Section
5.8(a) hereof in respect of the Sponsor’s fee (and the Trustee may charge the
same to the Trust to such extent without regard to whether, because of the
Sponsor’s default, fee waiver or other reason, the Sponsor may not then be
entitled to payment pursuant to Section 5.8(a)), and any amount paid to the
Sponsor pursuant to Section 5.8(a) shall be net of amounts so withheld. The
Trustee’s right of reimbursement shall be secured by a lien on amounts
chargeable to the Trust under Section 5.8(a), without giving effect to any fee
waiver then in effect, prior to the interest of the Sponsor, the Beneficial
Owners and any other Person. 

                    (c)
The Trustee is entitled to charge the Trust for all expenses and disbursements
incurred by it hereunder exclusive of amounts specified in the preceding
Section 5.7(b), including the fees and disbursements of its legal counsel and
those expenses identified in any Custody Agreement as payable by the Trustee,
except that the Trustee is not entitled to charge the Trust for (i) expenses
and disbursements incurred by it prior to the commencement of trading of Shares
on the Exchange and (ii) fees of agents for performing services the Trustee is
required to perform under this Agreement. The Trustee’s right of reimbursement
for expenses and disbursements under this paragraph shall be deductible from,
and constitute a lien against, the assets of the Trust. 

                    (d)
Any pecuniary cost of the Trustee resulting from actions taken to protect the
Trust and the rights and interest of the Registered Owners pursuant to the
terms of this Agreement, including, without limitation, the Trustee’s
appearance in, prosecution of or defense of any action that it considers
necessary or desirable to protect the Trust or the interests of the Beneficial
Owners, shall be deductible from, and constitute a lien against, the assets of
the Trust. 

	
 

	
 

	
 

	
 

	
Section 5.8

	
Charges of
Sponsor. 

                    (a)
The Sponsor is entitled to receive from the Trust, chargeable as an expense of
the Trust, a fee for services that will accrue daily and be paid monthly in
arrears in the manner provided in Section 4.7(d) at an annualized rate of [•] of Adjusted Net Asset Value. The
Sponsor may, at its sole discretion and from time to time, waive all or a
portion of its fee payable under this Section 5.8(a) for such periods of time
as shall be specified in the Sponsor’s written notice of such fee waiver to the
Trustee. The Sponsor is under no obligation to waiver its fees hereunder, and
any such waiver shall create no obligation to waive fees during any period not
covered by the applicable waiver. Any fee waiver by the Sponsor shall not
operate to reduce Sponsor’s obligations hereunder, including, but not limited
to, the Sponsor’s obligations under Section 5.3(g). 

26

                    (b)
The Sponsor is entitled to receive reimbursement from the Trust for all
expenses and disbursements incurred by it under the last sentence of Section
5.6(b) or that are of the type described in Sections 4.7(a)(ii), (iii), (iv),
and (vi) of this Agreement, except that the Sponsor is not entitled to charge
the Trust for (i) expenses and disbursements incurred by it prior to the
commencement of trading of Shares on the Exchange and (ii) fees of agents for
performing services the Sponsor is required to perform under this Agreement. 

	
 

	
 

	
 

	
 

	
Section 5.9

	
Retention of
Trust Documents. 

          The Trustee
is authorized to destroy those documents, records, bills and other data
compiled during the term of this Agreement at the times permitted by the laws
or regulations governing the Trustee, unless the Sponsor reasonably requests
the Trustee in writing to retain those items for a longer period. 

	
 

	
 

	
 

	
 

	
Section 5.10

	
Federal
Securities Law Filings. 

                    (a)
The Sponsor shall (i) prepare and file a registration statement with the
Commission and take such action as is necessary from time to time to qualify
the Shares for offering and sale under the federal securities laws of the
United States, including the preparation and filing of amendments and
supplements to such registration statement, (ii) promptly notify the Trustee of
any amendment or supplement to the registration statement or prospectus, of any
order preventing or suspending the use of any prospectus, of any request for
the amending or supplementing of the registration statement or prospectus or if
any event or circumstance occurs which is known to the Sponsor as a result of
which the registration statement or prospectus, as then amended or supplemented,
would include an untrue statement of a material fact or omit to state any
material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, (iii) provide the
Trustee from time to time with copies, including copies in electronic form, of
the prospectus, as amended and supplemented, in such quantities as the Trustee
may reasonably request and (iv) prepare and file any periodic reports or
updates that may be required under the Exchange Act. The Trustee shall furnish
to the Sponsor any information from the records of the Trust that the Sponsor
reasonably requests in writing that is needed to prepare any filing or
submission that the Sponsor or the Trust is required to make under the federal securities
laws of the United States, and the Sponsor is entitled to rely on such
information so furnished by the Trustee. 

                    (b)
The Sponsor shall have all necessary and exclusive power and authority to (i)
from time to time adopt, implement or amend such disclosure controls and
procedures as are necessary or desirable, in the Sponsor’s reasonable judgment,
to ensure compliance with the disclosure and ongoing reporting obligations
under any applicable securities laws; (ii) appoint and remove the auditors of
the Trust; and (iii) seek from the relevant securities or other regulatory
authorities such relief, clarification or other action as the Sponsor shall
deem necessary or desirable regarding the disclosure or financial reporting
obligations of the Trust. 

                    (c)
The policies and procedures comprising the Trust’s initial Internal Control
Over Financial Reporting have been adopted as of the date of this Agreement and
copies thereof have been delivered to the appropriate officers of the Sponsor
and the Trustee. Amendments to such initial Internal Control Over Financial
Reporting may be proposed from time to time by the 

27

Sponsor, but such amendments may not be adopted in connection with the
preparation of the Trust’s financial statements without the Trustee’s consent
(which consent will not be unreasonably withheld or delayed). 

	
 

	
 

	
 

	
 

	
Section 5.11

	
Prospectus
Delivery. 

          The Trustee
shall, if required by the federal securities laws of the United States, in any
manner permitted by such laws, deliver at the time of issuance of Shares, a
copy of the relevant prospectus, as most recently furnished to the Trustee by
the Sponsor, to each Depositor. 

	
 

	
 

	
 

	
 

	
Section 5.12

	
Discretionary
Actions by Trustee; Consultation. 

                    (a)
The Trustee may, in its discretion, undertake any action that it considers
necessary or desirable to protect the Trust or the interests of the Registered
Owners. The expenses incurred by the Trustee in connection with taking any
action under the preceding sentence (including the fees and disbursements of
legal counsel) shall be expenses of the Trust, and the Trustee shall be
entitled to be reimbursed for those expenses by the Trust. 

                    (b)
The Trustee shall notify and consult with the Sponsor before undertaking any
action under subsection (a) above or if the Trustee becomes aware of any
development or event that affects the administration of the Trust but is not
contemplated or provided for in this Agreement. 

                    (c)
The Sponsor shall notify and consult with the Trustee before undertaking any
action under the last sentence of Section 5.6(b) or if the Sponsor becomes
aware of any development or event that affects the administration of the Trust
but is not contemplated or provided for in this Agreement. 

	
 

	
 

	
 

	
 

	
Section 5.13

	
Dissolution
of the Sponsor Not to Terminate Trust. 

          The
dissolution of the Sponsor, or its ceasing to exist as a legal entity from, or
for, any cause, shall not operate to terminate this Agreement insofar as the
duties and obligations of the Trustee are concerned unless the Trust is
terminated pursuant to Section 6.2. 

ARTICLE VI.

AMENDMENT AND TERMINATION

	
 

	
 

	
 

	
 

	
Section 6.1

	
Amendment.

          Subject to
Section 4.11 hereof, the Trustee and the Sponsor may amend any provisions of
this Agreement without the consent of any Registered Owner. Any amendment that
imposes or increases any fees or charges (other than taxes and other
governmental charges, registration fees or other such expenses), or that
otherwise prejudices any substantial existing right of the Registered Owners
will not become effective as to outstanding Shares until 30 days after notice
of such amendment is given to the Registered Owners. Amendments pursuant to
Sections 2.6(c) or (d) shall not require notice pursuant to the preceding
sentence. Every Registered Owner and 

28

Beneficial Owner, at the time any amendment so becomes effective, shall
be deemed, by continuing to hold any Shares or an interest therein, to consent
and agree to such amendment and to be bound by this Agreement as amended
thereby. In no event shall any amendment impair the right of the Registered
Owner of Shares to Surrender Baskets of Shares and receive therefor the amount
of Trust Property represented thereby, except in order to comply with mandatory
provisions of applicable law. 

	
 

	
 

	
 

	
 

	
Section 6.2

	
Termination.

                    (a)
The Trustee shall set a date on which this Agreement will terminate and mail
notice of that termination to the Registered Owners at least 30 days prior to
the date set for termination if any of the following occurs: 

                              (i)
The Trustee is notified that the Shares are delisted from a national securities
exchange and are not approved for listing on another national securities
exchange within five business days of their delisting; 

                              (ii)
Registered Owners acting in respect of at least 75% of the outstanding Shares
notify the Trustee that they elect to terminate the Trust; 

                              (iii)
60 days have elapsed since the Trustee notified the Sponsor of the Trustee’s
election to resign and a successor trustee has not been appointed and accepted
its appointment as provided in Section 5.4; 

                              (iv)
the Commission determines that the Trust is an investment company under the
Investment Company Act of 1940, as amended, and the Trustee has actual
knowledge of such Commission determination; 

                              (v)
the aggregate market capitalization of the Trust, based on the closing price
for the Shares, was less than $350 million (as adjusted for inflation by
reference to the Consumer Price Index as published by the Bureau of Labor
Statistics) at any time after the first anniversary after the Trust’s formation
and the Trustee receives, within six months after the last of those trading
days, notice from the Sponsor of its decision to terminate the Trust; 

                              (vi)
the CFTC determines that the Trust is a commodity pool under the Commodity
Exchange Act of 1936, as amended, and the Trustee has actual knowledge of that
determination; 

                              (vii)
the Trust fails to qualify for treatment, or ceases to be treated, for United
States federal income tax purposes, as a grantor trust, and the Trustee
receives notice from the Sponsor that the Sponsor determines that, because of
that tax treatment or change in tax treatment, termination of the Trust is
advisable; 

                              (viii)
60 days have elapsed since DTC ceases to act as depository with respect to the
Shares and the Sponsor has not identified another Depository which is willing
to act in such capacity; or 

                              (ix)
as provided in paragraph (c) of this Section 6.2. 

29

                    (b)
On and after the date of termination of this Agreement, the Registered Owner of
Shares will, upon (i) Surrender of those Shares, (ii) payment of the fee of the
Trustee for the Surrender of Shares provided in Section 5.7, and (iii) payment
of any applicable taxes or other governmental charges, be entitled to Delivery,
to him or upon his order, of the amount of Trust Property represented by those
Shares. The Trustee shall not accept any deposits of Gold after the date of
termination of this Agreement. If any Shares remain outstanding after the date
of termination of this Agreement, the Trustee thereafter shall discontinue the
registration of transfers of Shares, shall not make any distributions to
Registered Owners, and shall not give any further notices or perform any
further acts under this Agreement, except that the Trustee shall continue to
collect distributions pertaining to Trust Property and hold the same uninvested
and without liability for interest, pay the Trust’s expenses and sell Gold as
necessary to meet those expenses and shall continue to deliver Trust Property,
together with any distributions received with respect thereto and the net
proceeds of the sale of any other property, in exchange for Shares Surrendered
to the Trustee (after deducting or upon payment of, in each case, the fee of
the Trustee set forth in 5.7 for the Surrender of Shares, any expenses for the
account of the Registered Owner of such Shares in accordance with the terms and
conditions of this Agreement, and any applicable taxes or other governmental
charges). At any time after the expiration of 90 days following the date of
termination of this Agreement, the Trustee may sell the Trust Property then
held under this Agreement and may thereafter hold the net proceeds of any such
sale, together with any other cash then held by it under this Agreement,
without liability for interest, for the pro rata benefit of the Registered
Owners of Shares that have not theretofore been Surrendered. After making such
sale, the Trustee shall be discharged from all obligations under this
Agreement, except to account for such net proceeds and other cash (after
deducting, in each case, any fees, expenses, taxes or other governmental
charges payable by the Trust, the fee of the Trustee for the Surrender of
Shares and any expenses for the account of the Registered Owner of such Shares
in accordance with the terms and conditions of this Agreement, and any
applicable taxes or other governmental charges). Upon the termination of this
Agreement, the Sponsor shall be discharged from all obligations under this
Agreement except for its obligations to the Trustee under Sections 5.6, 5.7 and
5.8 shall survive termination of this Agreement. 

                    (c)
If the Sponsor shall be adjudged bankrupt or insolvent, or a receiver of the
Sponsor or of its property shall be appointed, or a trustee or liquidator or
any public officer shall take charge or control of the Sponsor or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation, then in any such case the Sponsor shall be deemed conclusively to
have resigned with such resignation being effective immediately upon the
occurrence of any of the specified events, and the Trustee may terminate and
liquidate the Trust and distribute its remaining assets pursuant to this
Section 6.2. The Trustee shall have no obligation to appoint a successor
Sponsor or to assume the duties of the Sponsor and shall have no liability to
any person because the Trust is or is not terminated pursuant to this
paragraph. 

30

ARTICLE VII.

MISCELLANEOUS

	
 

	
 

	
 

	
 

	
Section 7.1

	
Counterparts.

          This
Agreement may be executed in any number of counterparts, each of which shall be
deemed an original and all of such counterparts shall constitute one and the
same instrument. Copies of this Agreement shall be filed with the Trustee and
shall be open to inspection by any Registered Owner during the Trustee’s
business hours. 

	
 

	
 

	
 

	
 

	
Section 7.2

	
Third-Party
Beneficiaries. 

          This
Agreement is for the exclusive benefit of the parties hereto, any Sponsor
Indemnified Party or any Trustee Indemnified Party and the Beneficial Owners,
and shall not be deemed to give any legal or equitable right, remedy or claim
whatsoever to any other person. 

	
 

	
 

	
 

	
 

	
Section 7.3

	
Severability.

          In case any
one or more of the provisions contained in this Agreement should be or become
invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions of this Agreement shall in no way be
affected, prejudiced or disturbed thereby. 

	
 

	
 

	
 

	
 

	
Section 7.4

	
Certain
Matters Relating to Beneficial Owners. 

                    (a)
By the purchase and acceptance or other lawful delivery and acceptance of
Shares, each Beneficial Owner thereof shall be deemed to be a beneficiary of
the Trust created by this Agreement and vested with beneficial undivided
interest in the Trust to the extent of the Shares owned beneficially by such
Beneficial Owner, subject to the terms and conditions of this Agreement. Upon
issuance as provided herein, Shares shall be fully paid and non-assessable. 

                    (b)
Subject to and in accordance with Section 2.6, Shares may at any time prior to
the date specified by the Trustee in connection with the termination of the
Trust be tendered to the Trustee for redemption. 

                    (c)
The death or incapacity of any Beneficial Owner shall not operate to terminate
this Agreement or the Trust, nor entitle such Beneficial Owner’s legal
representatives or heirs to claim an accounting or to take any action or
proceeding in any court for a partition or winding up of the Trust, nor
otherwise affect the rights, obligations and liabilities of the parties hereto
or any of them. Each Beneficial Owner expressly waives any right such
Beneficial Owner may have under any rule of law, or the provisions of any
statute, or otherwise, to require the Trustee at any time to account, in any
manner other than as expressly provided in the Agreement, in respect of the
Trust Property from time to time received, held and applied by the Trustee
hereunder. 

                    (d)
No Beneficial Owner shall have any right to vote or in any manner otherwise to
control the operation and management of the Trust, or the obligations of the
parties hereto. Nothing set forth in this Agreement shall be construed so as to
constitute the Beneficial Owners from time to time as partners or members of an
association; nor shall any Beneficial Owner ever be liable to any third person
by reason of any action taken by the parties to this Agreement, or for any
other cause whatsoever. 

31

                    (e)
The rights of Beneficial Owners must be exercised by DTC Participants or
Participants of any successor Depository acting on their behalf in accordance
with its rules and procedures

	
  

 	
  

 	
  

 
	
  

 	
 Section 7.5

 	
 Notices.
 

 

                    (a)
All notices given under this Agreement must be in writing. 

                    (b)
Any and all notices to be given to the Trustee or the Sponsor shall be deemed
to have been duly given (i) when it is actually delivered by a messenger or
recognized courier service, (ii) five days after it is mailed by registered or
certified mail, postage paid or (iii) when receipt of a facsimile transmission
is acknowledged via a return receipt or receipt confirmation as requested by
the original transmission, in each case to or at the address set forth below: 

To the
Trustee: 

	
  

 	
  

 
	
  

 	
 THE BANK OF
 NEW YORK MELLON

 2 Hanson Place 

 Brooklyn, New York 11217

 Attention: Donald Guire

 Telephone: 718-315-4927 

 Facsimile: 718-315-4850

 

or any other place to which the Trustee may have transferred its
Corporate Trust Office with notice to the Sponsor. 

To the
Sponsor: 

	
  

 	
  

 
	
  

 	
 ETF
 SECURITIES USA LLC

 
	
  

 	
 c/o ETF
 Securities Representative Office

 
	
  

 	
 6th
 Floor

 
	
  

 	
 2 London
 Wall Buildings

 
	
  

 	
 London, EC2M
 5UU

 
	
  

 	
 UK

 
	
  

 	
 Telephone:
 011 44 207 448-4330

 
	
  

 	
 Attention:
 President

 

          with a copy
to:

	
  

 	
  

 
	
  

 	
 Katten
 Muchin Rosenman LLP

 
	
  

 	
 575 Madison
 Avenue

 
	
  

 	
 New York,
 New York 10022

 
	
  

 	
 Attention:
 Peter J. Shea, Esq.

 

or any other place to which the Sponsor may have transferred its
principal office with notice to the Trustee. 

32

                    (c)
Any and all
notices to be given to a Registered Owner shall be deemed to have been duly
given (i) when actually delivered by messenger or a recognized courier service,
(ii) when mailed, postage prepaid or (iii) when sent by facsimile
transmission confirmed by letter, in each case at or to the address of such
Registered Owner as it appears on the transfer books of the Trustee, or, if
such Registered Owner shall have filed with the Trustee a written
request that any notice or communication intended for such Registered Owner be
delivered to some other address, at the address designated in such request.
Notices to Beneficial Owners shall be delivered to Authorized Participants and
DTC Participants designated by DTC or any successor Depository.

	
  

 	
  

 	
  

 
	
  

 	
 Section 7.6

 	
 Agent for
 Service; Submission to Jurisdiction. 

 

          The Sponsor
hereby (i) irrevocably designates and appoints Katten Muchin Rosenman LLP,
located at 575 Madison Avenue, New York, New York 10022, in the State of New
York, as the Sponsor’s authorized agent upon which process may be served in any
suit or proceeding arising out of or relating to the Shares, the Trust Property
or this Agreement, (ii) consents and submits to the jurisdiction of any state
or federal court in The City of New York, State of New York, in which any such
suit or proceeding may be instituted, and (iii) agrees that service of process
upon said authorized agent shall be deemed in every respect effective service
of process upon the Sponsor in any such suit or proceeding. The Sponsor agrees
to deliver, upon the execution and delivery of this Agreement, a written
acceptance by such agent of its appointment as such agent. The Sponsor further
agrees to take any and all action, including the filing of any and all such
documents and instruments, as may be necessary to continue such designation and
appointment in full force and effect for so long as any Shares remain
outstanding or this Agreement remains in force. In the event the Sponsor fails
to continue such designation and appointment in full force and effect, the
Sponsor hereby waives personal service of process upon it and consents that any
such service of process may be made by certified or registered mail, return
receipt requested, directed to the Sponsor at its address last specified for
notices hereunder, and service so made shall be deemed completed five (5) days
after the same shall have been so mailed. 

          Each party
hereto, each Authorized Participant by its delivery of an Authorized
Participant Agreement and each Beneficial Owner by the acceptance of a Share,
irrevocably consents to the jurisdiction of the courts of the State of New York
and of any Federal Court located in the Borough of Manhattan in such State in
connection with any action, suit or other proceeding arising out of or relating
to this Agreement or any action taken or omitted hereunder, and waives any
claim of forum non conveniens and any objections as to laying of venue. Each
party further waives personal service of any summons, complaint or other
process and agrees that service thereof may be made by certified or registered
mail directed to such person at such person’s address for purposes of notices
hereunder.

	
  

 	
  

 	
  

 
	
  

 	
 Section 7.7

 	
 Governing
 Law. 

 

          This
Agreement shall be interpreted under, and all rights and duties under this
Agreement shall be governed by, the internal substantive laws (but not the
choice of law rules) of the State of New York. 

33

          IN
WITNESS WHEREOF, ETF SECURITIES USA LLC and THE BANK OF NEW YORK MELLON have
duly executed this Depositary Trust Agreement as of the day and year first set
forth above. 

	
  

 	
  

 	
  

 
	
  

 	
 ETF
 SECURITIES USA LLC

 
	
  

 	
  

 
	
  

 	
 By: 

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: Graham
 Tuckwell

 
	
  

 	
 Title:   President
 & Chief Executive Officer

 
	
  

 	
  

 	
  

 
	
  

 	
 THE BANK OF
 NEW YORK MELLON,

 as Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: 

 
	
  

 	
 Title:

 

 [Signature Page to ETFS Asian Gold Depositary Trust Agreement]

EXHIBIT
A

[Form of Certificate]

THE SHARES EVIDENCED HEREBY REPRESENT RIGHTS WITH RESPECT TO UNDERLYING
TRUST PROPERTY (AS DEFINED IN THE DEPOSITARY TRUST AGREEMENT REFERRED TO
HEREIN) HELD BY THE TRUST AND DO NOT EVIDENCE AN OBLIGATION OF, OR AN INTEREST
IN, AND ARE NOT GUARANTEED BY THE SPONSOR OR THE TRUSTEE OR ANY OF THEIR
RESPECTIVE AFFILIATES. NEITHER THE SHARES NOR THE UNDERLYING TRUST PROPERTY ARE
INSURED UNDER ANY AGREEMENT THAT DIRECTLY BENEFITS THE TRUST OR GUARANTEED BY
ANY GOVERNMENTAL AGENCY OR ANY OTHER PERSON. 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE AGENT
AUTHORIZED BY THE ISSUER FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND
ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

A-1

ETFS
PHYSICAL ASIAN GOLD SHARES

ISSUED BY

ETFS ASIAN GOLD TRUST

REPRESENTING

FRACTIONAL INTERESTS IN DEPOSITED GOLD AND ANY OTHER TRUST 

PROPERTY

THE
BANK OF NEW YORK MELLON, as Trustee

	
  

 	
  

 	
  

 
	
  

 	
 No.

 	
 * Shares

 
	
  

 	
  

 
	
  

 	
 CUSIP:

 	
  

 

          THE BANK OF
NEW YORK MELLON, as Trustee (hereinafter called the Trustee), hereby certifies
that CEDE & CO., as nominee of The Depository Trust Company, or registered
assigns, is the owner of * Shares issued by ETFS Asian Gold Trust, each
representing a fractional undivided interest in the net assets of the Trust, as
provided in the Agreement referred to below. At the time of delivery of the
Agreement, each 50,000 Shares represented an interest in 5,000 Ounces of Gold
that are deposited under the Agreement and held by the Custodian referred to in
the Agreement. The amount of Gold in which each 50,000 Shares represents an
interest will decline over time as provided in the Agreement. The Trustee’s
Corporate Trust Office is located at a different address than its principal
executive office. Its Corporate Trust Office is located at 2 Hanson Place,
Brooklyn, New York 11217, and its principal executive office is located at One
Wall Street, New York, New York 10286. 

          This
Certificate is issued upon the terms and conditions set forth in the Depositary
Trust Agreement dated as of [•], [•] (the “Agreement”) between ETF
Securities USA LLC (herein called the Sponsor) and the Trustee. By becoming a
Registered Owner or Beneficial Owner, or by depositing Gold, a Person is bound
by all the terms and conditions of the Agreement. The Agreement sets forth the
rights of Depositors and Registered Owners and the rights and duties of the
Trustee and the Sponsor. Copies of the Agreement are on file at the Trustee’s
Corporate Trust Office in New York City. 

	
  

 
	

 

 
	
  

 
	
 * That
 number of Shares held at The Depository Trust Company at any given point in
 time. 

 

A-2

          The
Agreement is hereby incorporated by reference into and made a part of this
Certificate as if set forth in full in this place. Capitalized terms not
defined herein shall have the meanings set forth in the Agreement. 

          This
Certificate shall not be entitled to any benefits under the Agreement or be
valid or obligatory for any purpose unless it is executed by the Trustee by the
manual or facsimile signature of a duly authorized signatory of the Trustee
and, if a Registrar (other than the Trustee) for the Shares shall have been
appointed, countersigned by the manual signature of a duly authorized officer of
the Registrar. 

	
  

 	
  

 	
  

 	
  

 
	
 Dated: 

 	
  

 	
 THE BANK OF
 NEW YORK MELLON,

 as Trustee

 
	
  

 	

 

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 
	
  

 	
  

 	

 

 

THE
TRUSTEE’S CORPORATE TRUST OFFICE ADDRESS IS
2 HANSON PLACE, BROOKLYN, NEW YORK
11217

A-3Exhibit 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. 

 
	
  

 	
  

 
	
 •

 	
 ETFS Asian 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. 

 

 [Delivery Locations, Basket Sizes and Bullion
Ounces per Share on Next Page]

6

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)

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 0.03
 (Gold) & 1.1

 
	
 ETFS Physical PM Basket
 Shares

 	
  

 	
 Loco-London

 	
  

 	
 50,000

 	
  

 	
 (Silver);

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Loco-Zurich/London

 	
  

 	
  

 	
  

 	
 0.004
 (Platinum) &

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 0.006(Palladium)

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ETFS Physical WM Basket

 	
  

 	
 Loco-London

 	
  

 	
 50,000

 	
  

 	
 [0.0]
 (Silver);

 
	
 Shares

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Loco-Zurich/London

 	
  

 	
  

 	
  

 	
 [0.0]
 (Platinum) &

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 [0.0](Palladium)

 
	
 ETFS Physical Asian Gold
 Shares

 	
  

 	
 Loco-Zurich/Singapore

 	
  

 	
 50,000

 	
  

 	
 0.1
 (Gold)

 

7

SCHEDULE 1- CREATION AND REDEMPTION PROCEDURES

8

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 and the
ETFS Asian 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, and/or (iv) a Singapore 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, the
ETFS White Metals Basket Trust and the ETFS Asian Gold 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 Agreements of the ETFS
Gold Trust, the ETFS Precious Metals Basket Trust and the ETFS Asian Gold
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, the ETFS Precious Metals Basket Trust and the ETFS Asian Gold 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 Agreements 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 Agreements 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 Agreements of the ETFS
Silver Trust, the ETFS Precious Metals Basket Trust and the ETFS White Metals
Trust, as applicable, relating to silver. 

“Singapore Business Day”
shall mean a day (other than a Saturday, Sunday or a public holiday in
Singapore) on which commercial banks generally and the over-the-counter markets
in gold, with respect to the ETFS Asian Gold Trust, are open for the
transaction of business in Singapore. 

“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. 

S1-5

“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. 

“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. 

S1-6

          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. 

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 

S1-7

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 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, (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, and (v) loco Singapore or loco London with respect to Gold
for the ETFS Asian Gold 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 the ETFS Asian 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 

S1-8

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: 

	
  

 	
  

 
	
  

 	
           (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. 

S1-9

          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: 

          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: 

S1-10

	
  

 	
  

 
	
  

 	
           (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: 

          (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 Gold loco Singapore (for the ETFS Asian 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 and ETFS
 Asian 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 ETFS Asian
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. 

S1-11

          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. 

          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 or rejected 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 Gold involving the ETFS Asian Gold Trust only):

 	
  

 	
 loco London

 	
 o

 	
  

 	
 loco
 Singapore

 	
 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 

S1-14

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. 

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:

 

S3-2

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