Document:

c55995_ex10-1.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.1

EXECUTION COPY

 

HSBC BANK USA, NATIONAL ASSOCIATION, LONDON BRANCH 

and 

THE BANK OF NEW YORK MELLON 

solely in its capacity as trustee of the ETFS Silver Trust 

and not individually 

and 

ETF SECURITIES USA LLC 

______________________________________________ 

ALLOCATED ACCOUNT AGREEMENT 

______________________________________________ 

 

THIS AGREEMENT is made with effect on and from 20 July 2009

BETWEEN 

	
(1)      		
HSBC BANK USA, NATIONAL ASSOCIATION, LONDON BRANCH, a National Association incorporated in the State of Delaware, United States of America, whose principal place of
business in England is at 8 Canada Square, London E14 5HQ (the “Custodian”);

	
	 
	
(2)      		
THE BANK OF NEW YORK MELLON, a New York banking corporation, solely in its capacity as trustee of the ETFS Silver Trust created under the Trust Agreement identified below and not individually
(the “Trustee”), which expression shall, wherever the context so admits, include the named Trustee and all other persons or
companies for the time being the trustee or trustees of the Trust Agreement (as defined below) as trustee for the Shareholders (as defined in the Trust Agreement); and

	
	 
	
(3)      		
ETF SECURITIES USA LLC, a limited liability corporation formed in Delaware, whose principal place of business is at ETF Securities Representative Office, 2 London Wall
Buildings, 6th Floor, London EC2M 5UU (the “Sponsor”).

	
	 

INTRODUCTION

	
(1)      		
The Trustee has agreed to act as trustee for the Shareholders of the Shares pursuant to the Trust Agreement.

	
	 
	
(2)      		
Shares may be issued by the Trust against delivery of Bullion made by way of payment for the issue of such Shares. The Trustee has agreed that Bullion delivered to it on subscription for Shares will be paid
into the Metal Accounts.

	
	 
	
(3)      		
The Custodian has agreed to transfer Bullion from the Allocated Account into the Unallocated Account pursuant to the terms of this Agreement.

	
	 
	
(4)      		
The Trustee has agreed that the Allocated Account will be established by the Trustee in its name (for each Shareholder pursuant to the Trust Agreement), and that the Trustee will have the sole right to give
instructions for the making of any payments out of the Allocated Account.

	
	 

IT IS AGREED AS FOLLOWS

	
1.      		
INTERPRETATION

	
	 
	
1.1      		
Definitions: Words and expressions defined in the Prospectus, unless otherwise defined herein, have the same meanings when used in this Agreement. In addition,
in this Agreement, unless there is anything in the subject or context inconsistent therewith the following expressions shall have the following meanings:

	
	 

1

“Affiliate” means an entity that directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under
common control with the Custodian; 

“Allocated Account” means the allocated Bullion account number 19340 established in the name of the Trustee  with the Custodian pursuant to
this Agreement; 

“Authorised Signatory” means, in relation to any person, an individual who is duly empowered to bind such person and whose authority is
evidenced by a resolution of the board of directors (or any other appropriate means of authorisation) of such person, and, in relation to the Trustee, any individual named in the Trustee’s Authorised Signatory list having due authority to bind
the Trustee, which list shall be provided by the Trustee from time to time; 

“Availability Date” means the Business Day on which the Trustee requests the Custodian to credit to the Allocated Account Bullion debited
from the Unallocated Account; 

“Bullion” means silver in physical form complying with the Rules of the Relevant Association held by the Custodian or any Sub-Custodian
under this Agreement and/or any credit balance in the Allocated Account as the context requires; 

“Business Day” means a day (other than a Saturday or a Sunday or a public holiday in England) on which commercial banks generally and the
London Bullion markets are open for the transaction of
business in London;

“Conditions” means the terms and conditions on and subject to which Shares are issued in the form or substantially in the form set out in
the Trust Agreement; 

“General Notice” means any notice given in accordance with this Agreement other than a Transfer Notice; 

“HSBCnet” means the HSBC Group’s electronic system known as HSBCnet which the Custodian authorises its customers to use from time to time pursuant to the terms of a separate agreement entered into between the Custodian and the customer; 

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

“Point of Delivery” means such date and time that the recipient (or its agent) acknowledges in written form its receipt of delivery of
Bullion; 

“Prospectus” means the prospectus constituting a part of the registration statement filed on Form S-1, Registration Number 333-156307 with
the Securities Exchange Commission in accordance with the U.S. Securities Act of 1933, as amended, in relation to the Shares dated on or about July 21, 2009 as the same may be modified, supplemented or amended from time to time; 

2

“Redemption” means the redemption of Shares by the Trust in accordance with the Conditions; 

“Redemption Form” means a notice in the form prescribed from time to time by the Trust requesting Redemption of Shares;

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

“Relevant Association” means the London Bullion Market Association
or its successors; 

“Rules” means the rules, regulations, practices and customs of the Relevant Association, (including without limitation the rules as to Good
Delivery), the Bank of England and such other regulatory authority or other body as shall affect the activities contemplated by this Agreement or the activities of a Sub-Custodian; 

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

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

“Transfer Notice” means any notice of a deposit or withdrawal made pursuant to clause 3 or clause 4 of this Agreement; 

“Trust” means the ETFS Silver Trust formed pursuant to the Trust
Agreement 

“Trust Agreement” means
the Depositary Trust Agreement of the ETFS Silver Trust dated on or about July
20, 2009, as amended from time to time, between the ETF Securities USA LLC, as
Sponsor, and Bank of New York Mellon, the Trustee;

“Unallocated Account” means the unallocated Bullion account number 19340 established in the name of the Trustee with the Custodian pursuant
to the Unallocated Account Agreement; 

“Unallocated Account Agreement” means the Unallocated Account Agreement dated on or about July 20, 2009 among the Trustee, the Sponsor and
the Custodian pursuant to which the Unallocated Account is established and operated;

“VAT” means value added tax as provided for in the Value Added Tax Act 1994 (as amended or re-enacted from time to time) and legislation
supplemental thereto and any other tax (whether imposed in the United Kingdom in substitution thereof or in addition thereto or elsewhere) of a similar fiscal
 nature; 

3

	 	
“Withdrawal Date” means the Business Day on which the Trustee wishes a withdrawal of Bullion from the Allocated Account to
take place;

	
	 
	
1.2      		
Headings: The headings in this Agreement do not affect its interpretation.

	
	 
	
1.3      		
Singular and plural: References to the singular include the plural and vice versa.

	
	 
	
2.      		
ALLOCATED ACCOUNT

	
	 
	
2.1      		
Opening Allocated Account: The Custodian shall open and maintain the Allocated Account in the name of the Trustee (in its capacity as trustee for the
Shareholders).

	
	 
	
2.2      		
Deposits and Withdrawals: The Allocated Account shall evidence and record deposits and withdrawals of Bullion made pursuant to the terms of this
Agreement.

	
	 
	
2.3      		
Denomination of Allocated Account: The Allocated Account will hold deposits of Bullion and will be denominated in troy ounces to three decimal places.

	
	 
	
2.4      		
Reports: Account reports will be provided to the Trustee by the Custodian by fax or by e-mail (at the option of the Trustee) by the close of each Business Day
should there be any credits or debits to the Allocated Account that same day.

	
	 
	
2.5      		
Reversal of Entries: The Custodian at all times reserves the right to reverse any provisional or erroneous entries to the Allocated Account with effect
back-valued to the date upon which the final or correct entry (or no entry) should have been made.

	
	 
	
2.6      		
Provision of Information: The Custodian agrees that it will forthwith notify the Trustee in writing if any encumbrance of which it is aware is or is purported
to have been created over or in respect of the Allocated Account or any of the amounts standing to the credit thereof.

	
	 
	
2.7      		
Access: The Custodian will allow the Sponsor and the Trustee and their Bullion auditors (currently Inspectorate International Limited) only such access to its
premises during normal business hours, to examine the Bullion and such records, as they may reasonably require to perform their respective duties with regard to investors in Shares. The Trustee agrees that any such access shall be subject to
execution of a confidentiality agreement and agreement to the Custodian’s security procedures, and such audit shall be at the Trust or the Sponsor’s expense and shall be limited to no more than twice a calendar year.

	
	 
	
3.      		
DEPOSITS

	
	 
	
3.1      		
Procedure: The Custodian shall receive deposits of Bullion into the Allocated Account relating to the same kind of Bullion and having the same
denomination

	
	 

4

	 	
as that (or one of those) to which the Allocated Account relates only pursuant to transfers from the Unallocated Account.

	
	 
	
3.2      		
Standing Instructions; Notice Requirements: Deposits of Bullion into the Allocated Account shall be pursuant to the standing instructions of the Trustee. In the
absence of such standing instructions or for deposits of Bullion other than pursuant to such standing instructions, a notice relating to a deposit of Bullion into the Allocated Account must be in writing by the Trustee and received by the Custodian
no later than 3:00 p.m., London Time, on the day which is one London Business Day prior to the date of deposit.

	
	 
	
3.3      		
Right to Amend Procedure: The Custodian may amend the procedure in relation to the deposit of Bullion only where such amendment is caused by a change in the
Rules or procedures of the Relevant Association. The Custodian will, whenever practicable, notify the Trustee within a commercially reasonable time before the Custodian amends its procedures or imposes additional ones in relation to the transfer of
Bullion into and from the Unallocated Account, and in doing so the Custodian will consider the Trustee’s needs to communicate any such change to Authorized Participants and others.

	
	 
	
3.4      		
Allocation: The Trustee acknowledges that the process of allocation of Bullion to the Allocated Account from the Unallocated Account may involve minimal
adjustments to the weights of Bullion to be allocated to adjust such weight to the number of whole bars available.

	
	 
	
4.      		
WITHDRAWALS

	
	 
	
4.1      		
Procedure: The Trustee may at any time give
instructions to the Custodian for the withdrawal of Bullion from the Allocated Account but only by way of de-allocation to the
Unallocated Account or such other account as the Trustee may instruct (subject to clause 4.3 below).

	
	 
	
4.2      		
Notice Requirements: A confirmation from the Trustee to the Custodian given through HSBCnet (or such other authenticated method as may be agreed by the parties) or in writing, that a valid Redemption Form has been lodged for Shares shall be deemed an instruction given under clause 4.1 unless otherwise notified in writing by
the Trustee. Any other notice relating to a withdrawal of Bullion must be in writing.

	
	 
	
4.3      		
Right to Amend Procedure: The Custodian may amend the procedure for the withdrawal of Bullion only where such amendment is caused by a change in the Rules or
procedures of the Relevant Association. Any such amendment will subject to the conditions of the preceding clause 3.3 and will be promptly notified to the Trust and the Trustee, such notice to be given in advance of implementation whenever
practicable.

	
	 
	
4.4      		
Specification of Bullion: The Custodian may specify the serial numbers of the bars to be withdrawn once it receives instructions from the Trustee to effect a
withdrawal of Bullion pursuant to clause 4.1. The Custodian is entitled to select the Bullion to be made available to the Trustee; provided, however, that to the

	
	 

5

	 	
extent the Trustee provides specific serial numbers of bars to be so selected, the Custodian will take reasonable efforts to select such Bullion as specified by the Trustee. The Custodian may require more
than two Business Days prior notice in the event that the Trustee does specify the serial numbers of bars to be withdrawn.

	
	 
	
4.5      		
Collection of Bullion: The Trustee agrees that in the normal course (which, for the avoidance of doubt, shall not include withdrawal in connection with the
termination of this Agreement) withdrawal of Bullion from the Allocated Account shall be by way of de-allocation and subsequent credit of Bullion to the Unallocated Account.

	
	 
	
4.6      		
De-allocation: Following receipt by the Custodian of notice for the withdrawal of Bullion from the Allocated Account pursuant to clause 4.1, the Custodian shall
de-allocate sufficient Bullion from the Allocated Account to credit the Unallocated Account in the amount required. The Trustee acknowledges that the process of de-allocation of Bullion for withdrawal and/or credit to the Unallocated Account may
involve minimal adjustments to the weight of Bullion to be withdrawn to adjust such weight to the whole bars available.

	
	 
	
4.7      		
Risk: Where there is a shipment to or from the Custodian of Bullion, all right, title and risk in and to such Bullion shall pass at the Point of Delivery to the
relevant person for whose account the Bullion is being delivered.

	
	 
	
5.      		
INSTRUCTIONS

	
	 
	
5.1      		
Giving of Instructions: It is hereby agreed that only the Trustee shall have the right to give instructions to the Custodian for withdrawal of Bullion from the
Allocated Account. All instructions given by the Trustee to the Custodian shall be given in writing and signed by two Authorised Signatories of the Trustee. The Trustee shall notify the Custodian in writing of the names of the people who are
authorised to give instructions on the Trustee’s behalf. Until the Custodian receives written notice to the contrary, the Custodian is entitled to assume that any of those people have full and unrestricted power to give instructions on the
Trustee’s behalf. The Custodian is also entitled to rely on any instructions which are from, or which purport to emanate from, any person who appears to have such authority.

	
	 
	
5.2      		
Account not to be Overdrawn: The Allocated Account may not at any time have a debit balance thereon, and it is hereby agreed that no instruction shall be valid
to the extent that the effect thereof would be for the Allocated Account to have a debit balance thereon.

	
	 
	
5.3      		
Amendments: Once given, instructions continue in full force and effect until they are cancelled, amended or superseded. Notice of amendment shall have effect
only after actual receipt by the Custodian.

	
	 
	
5.4      		
Unclear or Ambiguous Instructions: If, in the Custodian’s opinion, any instructions are unclear or ambiguous, the Custodian shall use reasonable endeavours
(taking into account any relevant time constraints) to obtain clarification of those instructions from the Trustee and, failing that, the Custodian

	
	 

6

	 	
may in its absolute discretion and without any liability on its part, act upon what the Custodian believes in good faith such instructions to be or refuse to take any action or execute such instructions
until any ambiguity or conflict has been resolved to the Custodian’s satisfaction.

	
	 
	
5.5      		
Refusal to Execute: The Custodian will, where practicable, refuse to execute instructions if in the Custodian’s opinion they are or may be contrary to the
Rules or any applicable law.

	
	 
	
6.      		
CONFIDENTIALITY

	
	 
	
6.1      		
Disclosure to Others: Subject to clause 6.2, each of the Trustee and the Custodian shall respect the confidentiality of information acquired under this
Agreement and will not, without the other party’s consent, disclose to any other person any transaction or other information acquired about the other party, its business or the Trust under this Agreement.

	
	 
	
6.2      		
Permitted Disclosures: Each party accepts that from time to time any other party may be required by law or the Rules, or requested by a government department or
agency, fiscal body or regulatory or listing authority or as otherwise necessary in conducting the Trust’s business, to disclose information acquired under this Agreement. In addition, the disclosure of such information may be required by a
party's auditors, by its legal or other advisors, by a company which is in the same group of companies as a party (i.e., a subsidiary or holding company of a party), by a
Sub-Custodian or (in the case of the Trustee) by any beneficiary of the trusts constituted by the Trust Agreement. Each party irrevocably authorises the others to make such disclosures without further reference to such party.

	
	 
	
7.      		
CUSTODY SERVICES

	
	 
	
7.1      		
Appointment: The Trustee hereby appoints the Custodian to act as custodian of the Bullion in accordance with this Agreement and any Rules which apply to the
Custodian.

	
	 
	
7.2      		
Segregation of Bullion: The Custodian will be responsible for the safekeeping of the Bullion on the terms and conditions of this Agreement. The Custodian will
segregate the Bullion from any Bullion which the Custodian owns or holds for others by making appropriate entries in its books and records and will require Sub-Custodians to segregate the Bullion from any silver which they own or hold for others by
making appropriate entries in their books and records. The Custodian shall be deemed to have required such segregation in relation to the Sub-Custodians named in clause 8.1.

	
	 
	
7.3      		
Ownership of Bullion: The Custodian will identify in its books that the Bullion belongs to the Trustee (on trust for the Shareholders).

	
	 
	
7.4      		
Location of Bullion: Bullion must be held by the Custodian at its London vault premises. The Custodian agrees that it shall use, or where applicable procure any
Sub-Custodian to use, commercially reasonable efforts promptly to transport any

	
	 

7

	 	
Bullion held for the Trustee to these locations at the Custodian’s cost and risk. The Custodian agrees that all delivery and packing shall be in accordance with the Rules and Relevant Association good
market practices.

	
	 
	
7.5      		
Allocated Account Reports: For each Business Day, by no later than the following Business Day, we will transmit to you by HSBCnet, SWIFT, email or facsimile, information showing the movement of Bullion into and out of your Allocated Account, and identifying separately each transaction and the Business Day on which it
occurred and providing sufficient information to identify each individual bar of Bullion held in the Allocated Account.
	
	 
	
8.      		
SUB-CUSTODIANS
	
	 
	
8.1      		
Sub-Custodians: The Custodian may appoint Sub-Custodians solely for the temporary custody and safekeeping of Bullion until transported to the relevant vault
premises as provided in clause 7.4. The Sub-Custodians the Custodian selects may themselves select sub-custodians to provide such temporary custody and safekeeping of Bullion, but such sub-custodians shall not by such selection or otherwise be, or
be considered to be, a Sub-Custodian as such term is used herein. The
Custodian will use reasonable care in selecting any Sub-Custodian. As of the
date of this Agreement, the Sub-Custodians that the Custodian uses are: The Bank
of Nova Scotia (ScotiaMocatta), Deutsche Bank AG, JPMorganChase Bank, N.A., UBS
AG, Barclays Bank PLC, Johnson Matthey plc, Brink’s Global Services Inc.
and ViaMat International. The Custodian will notify each of the Trustee if it
selects any additional Sub-Custodian, or stops using any Sub- Custodian for such
purpose. The receipt of notice by the Trustee that the Custodian has selected
a Sub-Custodian (including those named in this clause 8.1) shall not be deemed
to limit the Custodian’s responsibility in selecting such Sub- Custodian.
	
	 
	
8.2      		
Liability: Except for the Custodian’s obligation to make commercially reasonable efforts to obtain delivery of Bullion from Sub-Custodians, the Custodian
shall not be liable in contract, tort or otherwise for any loss, damage or expense arising directly or indirectly from an act or omission, or insolvency, of any Sub- Custodian any further delegate of such Sub-Custodian unless the appointment of that
Sub-Custodian was made by the Custodian negligently or in bad faith.
	
	 
	
9.      		
REPRESENTATIONS
	
	 
	
9.1      		
Trustee’s Representations: The Trustee represents and warrants to the Custodian and the Sponsor that (such representations and warranties being deemed to
be repeated upon each occasion of deposit of Bullion under this Agreement):
	
	 

	          	(1)      	
it is duly constituted and validly existing under the laws of its jurisdiction of constitution;
	
	 
	 	(2)      	
the Trustee has all necessary authority, powers, consents, licences and authorisations (which have not been revoked) and has taken all necessary action to enable it lawfully to enter into and perform its
duties and obligations under this Agreement;
	
	 

8

	 	
(3)      		
the persons entering into this Agreement on behalf of the Trustee have been duly authorised to do so;

	
	 
	 	
(4)      		
this Agreement and the obligations created under it are binding upon and enforceable against the Trustee, as Trustee, in accordance with its terms (subject to applicable principles of equity) and do not and
will not violate the terms of the Rules or any order, charge or agreement by which the Trustee is bound; and

	
	 
	 	
(5)      		
the Trustee has received an indemnification from the Trust in the Trust Agreement in respect of any loss, liability or expense arising out of or in connection with the performance of its obligations under
this Agreement incurred without (a) gross negligence, bad faith, wilful misconduct or wilful malfeasance on the part of the Trustee in connection with the performance of or (b reckless disregard on the part of the Trustee of its obligations and
duties under this Agreement.

	
	 
	
9.2      		
Custodian’s Representations: The Custodian represents and warrants to the Trustee and the Sponsor that (such representations and warranties being deemed to
be repeated upon each occasion of deposit of Bullion under this Agreement):

	
	 
	 	
(1)      		
it is duly constituted and validly existing under the laws of its jurisdiction of constitution;

	
	 
	 	
(2)      		
the Custodian has all necessary authority, powers, consents, licences and authorisations (which have not been revoked) and has taken all necessary action to enable it lawfully to enter into and perform its
duties and obligations under this Agreement;

	
	 
	 	
(3)      		
the persons entering into this Agreement on behalf of the Custodian have been duly authorised to do so; and

	
	 
	 	
(4)      		
this Agreement and the obligations created under it are binding upon the Custodian and enforceable against the Custodian in accordance with its terms (subject to applicable principles of equity) and do not
and will not violate the terms of the Rules or any order, charge or agreement by which the Custodian is bound.

	
	 
	
9.3      		
Sponsor’s Representations: The Sponsor represents and warrants to the Custodian and the Trustee that (such representations and warranties being deemed to
be repeated upon each occasion of deposit of Bullion under this Agreement):

	
	 
	 	
(1)      		
it is duly constituted and validly existing under the laws of its jurisdiction of constitution;

	
	 
	 	
(2)      		
the Sponsor has all necessary authority, powers, consents, licences and authorisations (which have not been revoked) and has taken all

	
	 

9

	    	 	
necessary action to enable it lawfully to enter into and perform its duties and obligations under this Agreement;	
	 
	 	
(3)      		
the persons entering into this Agreement on behalf of the Sponsor have been duly authorised to do so;
	
	 
	 	
(4)      		
this Agreement and the obligations created under it are binding upon the Sponsor and enforceable against the Sponsor in accordance with its terms (subject to applicable principles of equity) and do not and
will not violate the terms of the Rules or any order, charge or agreement by which the Sponsor is bound; and
	
	 
	 	
(5)      		
the Sponsor has received an indemnification from the Trust in the Trust Agreement in respect of any loss, liability or expense arising out of or in connection with the performance of its obligations under
this Agreement incurred without (a) gross negligence, bad faith, wilful misconduct or wilful malfeasance on the part of the Sponsor in connection with the performance of or (b) reckless disregard on the part of the Sponsor of its obligations and
duties under this Agreement.
	
	 	 	 
	10.	FEES AND EXPENSES
	 	 
	10.1      		Fees: The
      Custodian shall charge for the services provided by it under this Agreement
      10bps per annum and the Sponsor shall procure payment to the Custodian
    of such amount.
	 	 
	 	The Fee will be
      calculated daily by applying the above fee rate divided by 365 (366 in
      a leap year), to the Custodian’s end of Business Day balance in the
      Allocated Account. Such fee shall be paid monthly in arrears as determined
      by the Custodian in Bullion relating to the same kind of Bullion and having
      the same denomination as that (or one of those) to which the Allocated
    Account relates.
	 	 
	10.2	Expenses: The
      Sponsor shall procure the payment to the Custodian on demand of all costs,
      charges and legal fees and expenses (excluding any relevant taxes and VAT,
      duties, other governmental charges, fees for storage and insurance of the
      Bullion, any fees and expenses of Sub-Custodians, and indemnification obligations
      of the Trustee under clause 12.5) incurred by the Custodian in connection
      with the performance of its duties and obligations under this Agreement
      or otherwise in connection with the Bullion. The Trustee will procure payment
      on demand, solely from and to the extent of the assets of the Trust, of
      any other costs, charges and expenses not assumed by the Sponsor in this
      clause 10.2 (including any relevant taxes and VAT, duties, other governmental
      charges and indemnification claims of the Custodian payable by the Trustee
      pursuant to clause 12.5, but excluding fees for storage and insurance of
      the Bullion, and any fees and expenses of Sub-Custodians) incurred by the
      Custodian in connection with the performance of its duties and obligations
    under this Agreement or otherwise in connection with the Bullion.
	 

10

	
10.3      		
Credit Balances: No interest or other amount will be paid by the Custodian on any credit balance on an Allocated Account.

	
	 
	
10.4      		
Default Interest: If the Trustee or the Sponsor fails to procure payment to the Custodian of any amount when it is due,
the Custodian reserves the right to charge interest (both before and after any judgement) on any such unpaid amount calculated at a rate equal to 1% above the overnight London Interbank Offered Rate (LIBOR) for the currency in which the amount is
due. Interest will accrue on a daily basis and will be due and payable as a separate debt.

	
	 
	
10.5      		
Recovery from Trust: Amounts payable pursuant to this clause 10 shall not be debited from the Allocated Account, but shall be payable by the Sponsor on behalf
of the Trust, and the Custodian hereby acknowledges that it will have no recourse against Bullion standing to the credit of the Allocated Account or to the Trustee individually in respect of any such amounts.

	
	 
	
11.      		
VALUE ADDED TAX

	
	 
	
11.1      		
VAT Inclusive: All sums payable under this Agreement by the Trust to the Custodian shall be deemed to be inclusive of VAT if and to the extent VAT is properly
chargeable on any supplies made by the Custodian to the Company pursuant to this Agreement.

	
	 
	
11.2      		
VAT Invoice: If VAT is properly chargeable on any supplies made by the Custodian to the Trust pursuant to this Agreement, the Custodian shall provide a valid
VAT invoice to the Trust.

	
	 
	
12      		
SCOPE OF RESPONSIBILITY

	
	 
	
12.1      		
Exclusion of Liability: The Custodian will use reasonable care in the performance of its duties under this Agreement and
will only be responsible for any loss or damage suffered as a direct result of any negligence, fraud or wilful default on its part in the performance of its duties (including as set out in clause 8.2), and in which case its liability will not exceed
the market value of the Bullion lost or damaged at the time such negligence, fraud or wilful default (calculating the value using the next available prices for Bullion of the same type and amount on the relevant London Bullion market following the
occurrence of such negligence, fraud or wilful default) is discovered by the Custodian, provided the Custodian notifies the Trustee promptly after any discovery of such lost or damaged Bullion. The Custodian shall not in any event be liable for any
consequential loss, or loss of profit or goodwill, whether or not resulting from any negligence, fraud or wilful default on its part.

	
	 
	
12.2      		
No Duty or Obligation: The Custodian is under no duty or obligation to make or take, or require any Sub-Custodian to make or take, any special arrangements or
precautions beyond those required by the Rules or as specifically set forth in this Agreement.

	
	 
	
12.3      		
Insurance: The Custodian will maintain such insurance for its business, including its bullion and custody business, as it deems appropriate in connection with
its

	
	 

11

	 	
custodial and other obligations and will be responsible for all costs, fees and expenses arising from the insurance policy or policies attributable to its relationship with the Trust. Consistent with
industry standards, the Custodian maintains a group insurance policy that covers all metals held in its vaults for the accounts of all its customers for a variety of events. The Trustee and the Sponsor may, subject to confidentiality restrictions,
be provided with details of this insurance coverage from time to time upon reasonable prior notice.

	
	 
	
12.4      		
Force Majeure: The Custodian shall not be liable for any delay in performance, or for the non-performance of any of its
obligations under this Agreement by reason of any cause beyond the Custodian’s reasonable control. This includes any act of God or war or terrorism or any breakdown, malfunction or failure of transmission, communication or computer facilities,
industrial action, acts and regulations of any governmental or supra national bodies or authorities or regulatory or self-regulatory organisation, for any reason, to perform its obligations.

	
	 
	
12.5      		
Indemnity: The Trustee, solely from and to the extent of the assets of the Trust, shall indemnify and keep indemnified
the Custodian (on an after tax basis) on demand against all costs and expenses, damages, liabilities and losses (other than the expenses assumed by the Sponsor under clause 10.2) which the Custodian may suffer or incur, directly or indirectly in
connection with this Agreement except to the extent that such sums are due directly to the negligence, wilful default or fraud of the Custodian.

	
	 
	 	
The Sponsor shall indemnify and keep indemnified the Custodian (on an after tax basis) on demand against all costs and expenses, damages, liabilities and losses (other than VAT) which the Custodian may
suffer or incur, directly or indirectly in connection with any breach of the Sponsor’s obligation under this Agreement except to the extent that such sums are due directly to the negligence, wilful default or fraud of the Custodian.

	
	 
	
12.6      		
Third Parties: Except with respect to the Trust, which shall be considered a beneficiary of this entire Agreement, and to the Sponsor, which shall be considered
a beneficiary (as applicable) of clauses 2.7 and 12.3, the Custodian does not owe any duty or obligation or have any liability towards any person who is not a party to this Agreement. This Agreement does not confer a benefit on any person who is not
a party to it. The parties hereto do not intend that any term of this Agreement shall be enforceable by any person who is not a party to it and do intend that the Contracts (Rights of Third Parties) 1999 Act shall not apply to this Agreement.
Nothing in this paragraph is intended to limit the obligations hereunder of any successor Trustee of the Trust or to limit the right of any successor Trustee of the Trust to enforce the Custodian’s obligations hereunder.

	
	 
	
13.      		
TERM AND TERMINATION

	
	 
	
13.1      		
Method: Subject to clauses 13.2 and 13.3 below, either the Trustee or the Custodian may terminate this Agreement for any reason or if the Custodian ceases to
offer the services contemplated by this Agreement to its clients or proposes to

	
	 

12

withdraw from the Bullion business, by giving not less than 90 days’ written notice to the other party. Any such notice given by the Trustee must specify:

	 	(1)	the date on which the termination will take effect
    (the “Termination Date”);
	 	 	 
	 	(2)	the person to whom the Bullion is to be made
    available; and
	 	 	 
	 	(3)	all other necessary arrangements for the redelivery
    of the Bullion to the order of the Trustee.
	 	 	 
	
13.2      		
Term: This Agreement shall have a fixed term up to and including the fifth anniversary from the date of this Agreement and shall automatically renew for a
further five years thereafter unless terminated by the Parties in accordance with this clause 13, provided that during such periods either the Trustee or the Custodian may
terminate the agreement immediately upon written notice if:-
	
	 
	 	
(1)      		
the Custodian ceases to offer the services contemplated by this Agreement to its clients or proposes to withdraw from the Bullion business;
	
	 
	 	
(2)      		
it becomes unlawful for the Custodian to be a party to this Agreement or to offer its services on the terms contemplated by this Agreement or it becomes unlawful for the Trustee, Sponsor or the Trust to
receive such services or for the Trustee or Sponsor to be a party to this Agreement;
	
	 
	 	
(3)      		
there is any event which, in the Custodian’s sole view, indicates the Trust’s insolvency or impending insolvency;
	
	 
	 	
(4)      		
there is any event which, in the Trustee’s sole view, indicates the Custodian’s insolvency or impending insolvency;
	
	 
	 	
(5)      		
in the event of the presentation of a winding up order, bankruptcy or analogous event in relation to either the Trustee or the Sponsor and no such replacement Trustee or Sponsor is identified within 90 days
of such event;
	
	 
	 	
(6)      		
the Trust is to be terminated;
	
	 
	 	
(7)      		
the Trust Agreement is amended to remove the indemnification provisions described in 9.1(5) and 9.3(5) of this Agreement; or
	
	 
	 	
(8)      		
if the Unallocated Account Agreement ceases to be in full force and effect at any time, the Custodian shall have the right, by service of written notice on the Trustee, to terminate this Agreement
immediately.
	
	 
	
13.3      		
Change in Trustee: If there is any change in the identity of the Trustee in accordance with the Trust Agreement, then the Custodian, the Trustee and
the
	
	 

13

	 	
Trust shall execute such documents and shall take such actions as the new Trustee and the outgoing Trustee may reasonably require for the purpose of vesting in the new Trustee the rights and obligations of
the outgoing Trustee, and releasing the outgoing Trustee from its future obligations under this Agreement.

	
	 
	
13.4      		
Redelivery Arrangements: If the Trustee does not make arrangements acceptable to the Custodian for the redelivery of the Bullion the Custodian may continue to
store the Bullion, in which case the Custodian will continue to charge the fees and expenses payable under clause 01. If the Trustee has not made arrangements acceptable to the Custodian for the redelivery of the Bullion within six months of the
date specified in the termination notice as the Termination Date, the Custodian will be entitled to sell the Bullion and account to the Trustee for the proceeds.
	
	 
	
13.5      		
Existing Rights: Termination shall not affect rights and obligations then outstanding under this Agreement which shall
continue to be governed by this Agreement until all obligations have been fully performed.
	
	 
	
14.      		
NOTICES
	
	 
	
14.1      		
Transfer Notices: Any Transfer Notice shall be in writing in English and shall be marked “Urgent – This Requires Immediate Attention” and signed
(unless sent by HSBCnet) by or on behalf of the party giving it (or its duly authorised representative). Any Transfer Notice shall be sent either by facsimile or via
HSBCnet or such other authenticated method as may, from time to time, be agreed between the parties. Any Transfer Notice shall be deemed to have been given, made or served upon
actual receipt by the recipient.
	
	 
	
14.2      		
General Notices: Any General Notice
    shall be in writing in English and shall be marked “Urgent – This Requires Immediate Attention” and
    shall be signed by or on behalf of the party giving it (or its duly authorised
    representative). Any General Notice shall be given, made or served by sending
    the same by pre-paid registered post (first class if inland, first class
    airmail if overseas) or facsimile transmission. Any General Notice sent
by pre-paid registered post shall be deemed to have been received three Business
Days in the case of inland post or seven Business Days in the case of overseas
post after despatch. Any General Notice sent by facsimile shall be deemed to
have been given, made or served upon actual receipt by the recipient.
	
	 
	
14.3      		
The addresses and numbers of the parties for the purposes of clauses 14.1 and 14.2 are;
	
	 	 
	 	The Custodian:	HSBC Bank USA, National Association,
    London Branch
	 	 	8 Canada Square
	 	 	London
	 	 	E14 5HQ
	 	 	Attention: Tony J Dean
	 	 	Facsimile No. +44 (0)20 7992 4489
	 	 

14

 

			
	 	The Trustee:		 	
	 		 		
The Bank of New York Mellon	
	 		 		
2 Hanson Place	
	 		 		
Brooklyn, New York 11217	
	 		 		
Attention: Donald Guire	
	 		 		
Facsimile: 718-315-4927	
	 	
	 	The Sponsor:		 	
	 	
	 		 		
ETF Securities USA LLC	
	 		 		
c/o ETF Securities Representative Office	
	 		 		
6th Floor	
	 		 		
2 London Wall Buildings	
	 	 	London EC2M 5UU
	 		 		
Telephone: +442074404330	
	 		 		
Attention: US Fund Services	

	 	 
	 	or such other address or facsimile number as
      shall have been notified (in accordance with this clause) to the other
    party hereto. 
	 	 
	
14.4      		
Recording of Calls: Each of the Custodian and the Trustee may record telephone conversations without use of a warning tone. Such records will be the recording
party’s sole property and accepted by the other parties hereto as evidence of the orders or instructions given.
	
	 
	
15.      		
GENERAL
	
	 
	
15.1      		
Role of Trustee: The Trustee is a party
    to this Agreement in its capacity as Trustee for the Shareholders and accordingly
    (i) the Trustee shall only be liable to satisfy any obligations under this
    Agreement, including any obligations or liabilities arising in connection
    with any default by the Trustee under this Agreement, to the extent of the
    assets held from time to time by the Trustee as trustee of the trusts constituted
    by the Trust Agreement (the “Trust Assets”)
to the extent authorized by the Trust Agreement and (ii) no recourse shall be
had to (a) any assets other than the Trust Assets, including any of the assets
held by the Trustee as trustee, co-trustee or nominee of a trust other than the
trusts constituted by the Trust Agreement, as owner in its individual capacity
or in any way other than as trustee of the trusts constituted by the Trust Agreement;
or (b) the Trustee for any assets that have been distributed by the Trustee to
the beneficiaries of the trusts constituted by the Trust Agreement;
	
	 
	
15.2      		
No Advice: The Custodian’s duties and obligations under this Agreement do not include providing the other parties hereto with investment advice. In asking
the Custodian to open and maintain the Allocated Account, the Trustee acknowledges that it is acting in reliance on its own judgment and the Custodian shall not owe to the Trustee or the Trust any duty to exercise any judgment on their behalf as to
the merits or suitability of any deposits into, or withdrawals from, the Allocated Account.
	
	 

15

	
15.3      		
Rights and Remedies: The Custodian hereby waives any right it has or may hereafter acquire to combine, consolidate or
merge the Metal Accounts with any other account of the Trust or the Trustee or to set off any liabilities of the Trust or of the Trustee to the Custodian and agrees that it may not set off, transfer or combine or withhold payment of any sum standing
to the credit or to be credited to the Metal Accounts in or towards or conditionally upon satisfaction of any liabilities to it of the Trust or the Trustee. Subject thereto, the Custodian’s rights under this Agreement are in addition to, and
independent of, any other rights which the Custodian may have at any time in relation to the Bullion.

	
	 
	
15.4      		
Assignment: This Agreement is for the benefit of and binding upon the parties hereto and their respective successors and
assigns. Save as expressly provided herein, no party may assign, transfer or encumber, or purport to assign, transfer or encumber, any right or obligation under this Agreement unless the other parties otherwise agree in writing, except that consent
is not required where the Custodian assigns, transfers or encumbers any right or obligation under this Agreement to its Affiliate. This clause shall not restrict the Custodian’s power to merge or consolidate with any party, or to dispose of all
or part of its custody business and further provided that this clause shall not restrict the Trust from assigning its rights hereunder to a Shareholder to the extent required for the Trust to fulfil its obligations under the Trust
Agreement.

	
	 
	
15.5      		
Amendments: Any amendment to this Agreement must be agreed in writing and be signed by all of the parties hereto. Unless
otherwise agreed, an amendment will not affect any legal rights or obligations which may already have arisen.

	
	 
	
15.6      		
Partial Invalidity: If any of the clauses (or part of a clause) of this Agreement becomes invalid or unenforceable in any way under the Rules or any law, the
validity of the remaining clauses (or part of a clause) will not in any way be affected or impaired.

	
	 
	
15.7      		
Entire Agreement: This document represents the entire agreement between the parties hereto in respect of its subject matter, and excludes any prior agreements
or representations save for any made with fraudulent intent.

	
	 
	
15.8      		
Counterparts: This Agreement may be executed in any number of counterparts each of which when executed and delivered is an original, but all the counterparts
together constitute the same agreement.

	
	 
	
15.9      		
Business Days: If any obligation falls
    due to be performed on a day which is not a Business Day, then the relevant
    obligations shall be performed on the next succeeding Business Day.

	
	 

16

	
15.10      		
Prior Agreements: The
    Custodian, or any member of the HSBC group of companies (the “HSBC Group”) may trade in Shares for its own account as principal, may have underwritten or may underwrite an issue of Shares or, together with any such entities’ directors,
    officers or employees, may have a long or short position in Shares or in
    any related security or instrument. Brokerage or other fees may be earned
    by any member of the HSBC Group or persons associated with them in respect
    of any business transacted by them in all or any of the aforementioned securities
    or instruments. This Agreement supersedes and replaces any prior existing
    agreement between the Parties relating to the same subject matter.
	
	 
	
16.      		
GOVERNING LAW AND JURISDICTION
	
	 
	
16.1      		
Governing Law: This Agreement is governed by, and will be construed in accordance with, English law.
	
	 
	
16.2      		
Jurisdiction: The Trustee and the Custodian agree that the courts of the State of New York, in the United States of America, and the United States federal court
located in the Borough of Manhattan in such state are to have jurisdiction to settle any disputes or claims which may arise out of or in connection with this Agreement and, for these purposes the Trustee and the Custodian irrevocably submits to the
non-exclusive jurisdiction of such courts, waive any claim of forum non conveniens and any objection to laying of venue, and further waive any personal service.
	
	 
	
6.4      		
Waiver of Immunity: To the extent that the Trustee may in any jurisdiction claim for it as Trustee, the Trust or its assets any immunity from suit, judgment,
enforcement or otherwise howsoever, the Trustee agrees not to claim and irrevocably waives any such immunity which it would otherwise be entitled to (whether on grounds of sovereignty or otherwise) to the full extent permitted by the laws of such
jurisdiction.
	
	 
	
16.5      		
Service of Process: Process by which any proceedings are begun may be served on it by being delivered to the address
specified below. This does not affect any right to serve process in another manner permitted by law.
	
	 
	 	
Custodian’s Address for service of process:

	
	 	 
	 	HSBC Bank USA, National Association, London Branch
	 	
    8 Canada Square
	 	London, E14 5HQ
	 	
    Attention: Precious Metals Department
	 	 
	 	Trustee’s Address for service of process:
	 	 
	 	The Bank of New York Mellon
	 	One Wall Street
	 	New York, New York 10286
	 	
    Attention: Legal Department
	 	 

17

Sponsor’s Address for Service of Process:

ETF Securities USA LLC 

c/o ETF Securities Representative Office

6th Floor 

2 London Wall Buildings 

London EC2M 5UU

18

EXECUTED by the Parties:

Signed on behalf of and for HSBC BANK USA, NATIONAL ASSOCIATION, LONDON BRANCH by

			
	
Signature		
/s/ Dem Rousos		 
	
Name		
Dem Rousos		 
	
Title		
Authorized Signatory.		 

Signed on behalf of and for

THE BANK OF NEW YORK MELLON, solely in its capacity as trustee of the ETFS Silver Trust and not individually by

			
	
Signature		
/s/ Andrew T. Pfeifer		 
	
Name		
Andrew T. Pfeifer		 
	
Title		
Vice President		 

Signed on behalf of and for ETF SECURITIES USA LLC by

			
	
Signature		
/s/ Graham Tuckwell		 
	
Name		
Graham Tuckwell		 
	
Title		
President and Chief Executive Officer-- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.2

EXECUTION COPY

HSBC BANK USA, NATIONAL ASSOCIATION, LONDON BRANCH

and

     THE BANK OF NEW YORK MELLON

solely in its capacity as trustee of the ETFS Silver Trust 

and not individually

and

ETF SECURITIES USA LLC

_______________________________________________

UNALLOCATED
  ACCOUNT AGREEMENT

_______________________________________________

THIS AGREEMENT is made with effect on and from July 20, 2009.

BETWEEN  

	
(1)             	
HSBC BANK USA, NATIONAL ASSOCIATION, LONDON BRANCH, a National Association incorporated in the State of Delaware, United States of America, whose principal place of
business is at 8 Canada Square, London E14 5HQ (the “Custodian”);
        
	 
	
(2)             	
THE BANK OF NEW YORK MELLON, a New York banking corporation, solely in its capacity as trustee of the ETFS Silver Trust created
under the Trust Agreement identified below and not individually (the “Trustee”), which expression shall, wherever the context so
admits, include the named Trustee and all other persons or companies for the time being the trustee or trustees of the Trust Agreement (as defined below) as trustee for the Shareholders (as defined in the Trust Agreement); and
        
	 
	
(3)             	
ETF SECURITIES USA LLC,
    a limited liability corporation formed in Delaware, whose principal place
    of business is at c/o ETF Securities Representative Office, 2 London  Wall
    Buildings, 6th Floor,
    London EC2M 5UU (the “Sponsor”).
    

INTRODUCTION

	
(1)             	
The Trustee has agreed to act as trustee for the Shareholders of the Shares pursuant to the Trust Agreement.

        
	 
	
(2)             	
An Authorized Participant may apply to become a Shareholder by: (i) applying for Shares in accordance with an Authorized Participant Agreement and (ii) depositing the relevant amount of Bullion into the
Unallocated Account.

        
	 
	
(3)             	
The Custodian has agreed to transfer Bullion deposited into the Unallocated Account to the Allocated Account and where applicable, other accounts, pursuant to the terms of this Agreement.

        
	 
	
(4)             	
In order to effect redemptions of Shares, Bullion must be transferred from the Allocated Account to the Unallocated Account by way of de-allocation, and must then be delivered to the Shareholder
Account.

        
	 
	
(5)             	
The Trustee has agreed that the Unallocated Account will be established by the Trustee for the account of the Trust, and that the Trustee will have the sole right to give instructions for the making of any
payments into or out of the Unallocated Account.

        
	 

IT IS AGREED AS FOLLOWS

	
1.       	
INTERPRETATION

        
	 
	
1.1             	
Definitions: Words and expressions defined in the Prospectus, unless otherwise defined herein, have the same meanings when used in this

        
	 

1

Agreement.  In addition, in this Agreement, unless there is anything in the subject or context inconsistent therewith the following expressions shall have the following meanings:

“Affiliate” means an entity that directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under
common control with the Custodian; 

“Allocated Account” means the allocated Bullion account number 19340 established in the name of the Trustee with the Custodian pursuant to
the Allocated Account Agreement; 

“Allocated Account Agreement” means the Allocated Account Agreement dated on or about July 20, 2009 between the Trustee, the Sponsor and the
Custodian pursuant to which the Allocated Account is established and operated;

“AP Account” means a loco London account maintained on an unallocated basis by the Custodian for the Authorized Participant, as specified in
the applicable Transfer Notice; 

“Application” means an offer by an Authorized Participant to the Trust (in the form prescribed by the Trust) to subscribe for Shares, being
an offer on terms referred to in the Prospectus and in accordance with the provisions of the relevant Authorized Participant Agreement; 

“Application Date” means the New York Business Day on which a valid Application Form is received (or deemed to be received) by the Trustee
in accordance with the relevant Authorized Participant Agreement; 

“Application Form” means a Purchase Order as defined in the Authorized Participant Agreement; 

“Authorized Participant” means a person which has entered into an Authorized Participant Agreement with the Sponsor and the Trustee in
relation to Shares and which: (a) is a person who (i) is a registered broker-dealer or other securities market participant such as a bank or other financial institution which is not required to register as a broker-dealer to engage in securities
transactions and (ii) is a participant in DTC; (b) is approved by the Sponsor (in its absolute discretion); and (c) has established an AP Account; 

“Authorized Participant Agreement” means a written agreement between the Trustee, the Sponsor and another person under which such person is appointed to act as an “Authorized Participant,” in relation to Shares and if such agreement is subject to conditions precedent, provided that such conditions
have been satisfied;

“Authorized Signatory” means, in relation to any person, an individual who is duly empowered to bind such person and whose authority is
evidenced by a resolution of the board of directors (or any other appropriate means of

2

authorisation) of such person, and, in relation to the Trustee, any individual named in the Trustee’s Authorized Signatory list having due authority to bind the Trustee, which list shall be provided by the Trustee from
time to time;

“Availability Date” means the London Business Day on which the Trustee requests the Custodian to credit to the Unallocated Account Bullion
debited from the Allocated Account;

“Benchmark Price” means, as of any day, that publicly available per ounce price of Bullion used by the Trust on such day to value the
Trust’s Bullion, which is expected to be the London Fix but is subject to change by the Sponsor in accordance with the Trust Agreement. 

“Bullion” means silver in physical form complying with the Rules of the Relevant Association held by the Custodian or any Sub-Custodian
under this Agreement and/or any credit balance in the Unallocated Account as the context requires; 

“Conditions” means the terms and conditions on and subject to which Shares are issued in the form or substantially in the form set out in
the Trust Agreement; 

“General Notice” means any notice given in accordance with this Agreement other than a Transfer Notice; 

“HSBCnet” means the HSBC Group’s electronic system known as HSBCnet which the Custodian authorises its customers to use from time to time pursuant to the terms of a separate agreement entered into between the Custodian and the customer; 

“London Business Day” means a day (other than a Saturday or a Sunday or a public holiday in England) on which commercial banks generally and
the London Bullion market are open for the transaction of business in London; 

“Management Fee” means the amount of Bullion which may be debited from the Metal Accounts at the end of each month and paid to the Trust in
accordance with the terms of the Prospectus; 

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

“Metal Entitlement” means as at any date and in relation to any Share the amount(s) of Bullion to which the Shareholder is entitled on Redemption of that Share on that date
in accordance with the Conditions; 

“New York Business Day” means a “Business Day” as defined in the Trust Agreement; 

“Point of Delivery” means such date and time that the recipient (or its agent) acknowledges in written form its receipt of delivery of
Bullion; 

3

“Prospectus” means the prospectus constituting a part of the registration statement filed on Form S-1, Registration Number 333-158221 with the Securities Exchange Commission
in accordance with the U.S. Securities Act of 1933, as amended, in relation to the Shares dated on or about July 21, 2009 as the same may be modified, supplemented or amended from time to time; 

“Redemption” means the redemption of Shares by the Trust in accordance with the Conditions; 

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

“Relevant Association” means the London Bullion Market Association or its successors; 

 “Rules” means the rules, regulations, practices and customs of the Relevant Association (including without limitation the rules as to Good
Delivery), the Bank of England and such other regulatory authority or other body as shall affect the activities contemplated by this Agreement;

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

“Shareholder Account” means a loco London account maintained on an unallocated basis by the Custodian or a Bullion clearing bank, as applicable, for an Authorized
Participant or the Shareholder of Shares, as specified in the applicable Redemption Notice; 

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

“Sponsor Account” means a loco London account maintained on an unallocated basis by the Custodian or a Bullion clearing bank, as applicable, for the Sponsor; 

“Transfer Notice” means any notice of a deposit or withdrawal made pursuant to clause 3 or clause 4 of this Agreement; 

“Trust” means the ETFS Silver Trust formed pursuant to the Trust Agreement; 

“Trust Agreement” means the Depositary Trust Agreement of the ETFS Silver Trust dated on or about July 20,
2009, as amended from time to time, between the ETFS Securities USA LLC, as Sponsor, and the Trustee;

“Unallocated Account” means the unallocated Bullion account, number 19340 established in the name of the Trustee, with the Custodian
pursuant to

4

	 	
this Agreement on an Unallocated Basis;

        
	 
	 	
“Unallocated Basis” means, with respect to a Metal Account maintained with us, that the person in whose name the account is held is entitled to delivery in
accordance with the Rules of an amount of Bullion equal to the amount of Bullion standing to the credit of the person's account but is an unsecured creditor in any Bullion that the Custodian owns or holds.

        
	 
	 	
“VAT” means value added tax as provided for in the Value Added Tax Act 1994 (as amended or re-enacted from time to time) and
legislation supplemental thereto and any other tax (whether imposed in the United Kingdom in substitution thereof or in addition thereto or elsewhere) of a similar fiscal nature; and

        
	 
	 	
“Withdrawal Date” means the London Business Day on which the Trustee wishes a withdrawal of Bullion from the Unallocated
Account to take place.

        
	 
	
1.2              	
Headings: The headings in this Agreement do not affect its interpretation.

        
	 
	
1.3              	
Singular and plural: References to the singular include the plural and vice versa.

        
	 
	
2.       	
UNALLOCATED ACCOUNT

        
	 
	
2.1              	
Opening Unallocated Account: The Custodian shall open and maintain the Unallocated Account in the name of the Trustee (in its capacity as trustee for the
Shareholders).

        
	 
	
2.2              	
Denomination of Unallocated Account: The Unallocated Account will hold deposits of Bullion and will be denominated in troy ounces to three decimal
places.

        
	 
	
2.3              	
Reports: Account reports will be provided to the Trustee by the Custodian by fax or by email (at the option of the Trustee) by the close of each London Business
Day should there be any credits or debits to the Unallocated Account that same day.

        
	 
	
2.4              	
Reversal of Entries: The Custodian at all times reserves the right to reverse any provisional or erroneous entries to the Unallocated Account with effect
back-valued to the date upon which the final or correct entry (or no entry) should have been made (including, without limitation, where the Custodian has credited a deposit made pursuant to clause 3.1(b) and on receipt by the Custodian of the
Bullion if it is determined that the Bullion does not comply with the Rules or that it is not the required weight).

        
	 
	
2.5              	
Provision of Information: The Custodian agrees that it will forthwith notify the Trustee in writing if any encumbrance of which it is aware is or is purported
to have been created over or in respect of the Unallocated Account or any of the amounts standing to the credit thereof.

        
	 

5

	
2.6	
Access: The Custodian will allow the Sponsor and the Trustee and their Bullion auditors (currently Inspectorate International Limited) only such access to its
premises during normal business hours, to examine the Bullion and such records, as they may reasonably require to perform their respective duties with regard to investors in Shares. The Trustee agrees that any such access shall be subject to
execution of a confidentiality agreement and agreement to the Custodian’s security procedures, and such audit shall be at the Trust’s or Sponsor’s expense and shall be limited to no more than twice a calendar year, provided however
that any second visit within the same calendar year shall be subject to the consent of the Custodian, such consent not to be unreasonably withheld.

        
	 
	
3.       	
DEPOSITS

        
	 
	
3.1              	
Procedure: The Custodian shall receive deposits of Bullion into the Unallocated Account (in the manner and accompanied by such documentation as the Custodian
may require) by:

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

        
	 
	 	
(b)             	
de-allocation of Bullion held in the Allocated Account for payment of the Management Fee; or

        
	 
	 	
(c)             	
transfer of Bullion from an AP Account relating to the same kind of Bullion and having the same denomination as that to which the Unallocated Account relates on Application by an Authorized Participant for
Shares.

        
	 
	 	
No other methods of deposit are permitted.

        
	 
	
3.2              	
Notice Requirements: Notice of intended deposit must be received by the Custodian from the Trustee no later than 3:00 p.m. (London time) one London Business Day
prior to the Availability Date and specify the weight (in troy ounces of silver) to be credited to the Unallocated Account, the Availability Date, the account from which such deposit will be transferred, and any other information which the Custodian
may from time to time require. When by reference to the Trustee’s notifications and instructions to the Custodian, the Custodian reasonably believes an amount of Bullion has been credited to the Unallocated Account in error, the Custodian will
notify the Trustee promptly and, pending a joint resolution of the error, will treat such amount as not being subject to the standing instruction in clause 5.2 below.

        
	 
	
3.3              	
Right to Amend Procedure: The Custodian may amend the procedure in relation to the deposit of Bullion only where such amendment is caused by a change in the
Rules or procedures of the Relevant Association. The Custodian will, whenever practicable, notify the Trustee within a commercially reasonable time before the Custodian amends its procedures or imposes additional ones in relation to the transfer of
Bullion into and from the

        
	 

6

	 	
Unallocated Account, and in doing so the Custodian will consider the Trustee’s needs to communicate any such change to Authorized Participants and others.
        
	 
	
4.       	
WITHDRAWALS
        
	 
	
4.1              	
Procedure: The Trustee may at any time give instructions to the Custodian for the withdrawal of Bullion standing to the credit of the Unallocated Account in
such form as may be agreed by the parties from time to time, provided that, a withdrawal may be made only by:
        
	 
	 	
(a)             	
transfer to a Shareholder Account relating to the same kind of Bullion and having the same denomination as that to which the Unallocated Account relates when Shares are redeemed; or
        
	 
	 	
(b)             	
transfer to the Sponsor Account for payment of the Management Fee; or
        
	 
	 	
(c)             	
transfer of Bullion to the Allocated Account; or
        
	 
	 	
(e)             	
the collection of Bullion from the Custodian at its vault premises, or such other location as the Custodian may direct by notice to the party taking delivery received not later than one London Business Day
prior to the Availability Date, at the Trust’s expense and risk; or
        
	 
	 	
(f)             	
delivery of Bullion to such location as the Trustee directs, at the Trust’s expense and risk;
        
	 
	 	
  and no other methods of withdrawal are permitted, save that the Trustee agrees to exercise its rights under clauses 4.1(e) and (f) on an exceptional basis only. Any Bullion made available to the relevant
    person (as instructed by the Trustee) pursuant to clause 4.1(e) and (f) will be in a form which complies with the Rules or in such other form as may be agreed between the Trustee and the Custodian the combined fine weight of which will not exceed
    the number of fine ounces of Bullion the Trustee has instructed the Custodian to debit. The Custodian is entitled to select the Bullion to be made available to the relevant person (as instructed by the Trustee) provided it is in the same form as
    that deposited. To the extent that the Trustee is authorized to sell Bullion under the Trust Agreement, the Custodian may, but is not required to, purchase such Bullion; provided that the Custodian’s purchase price for such Bullion must be at
    the Benchmark Price.

	 
	
4.2              	
Notice Requirements: Any notice relating to a withdrawal of Bullion must be in writing and:
        
	 
	 	
(a)             	
if it relates to a withdrawal pursuant to clauses 4.1(a), 4.1(b) or 4.1(d), to be in the form in such form as may be agreed by the parties from time to time;
        
	 
	 	
  and in all cases be received by the Custodian no later than 3:00 p.m (London time) on the Withdrawal Date unless otherwise agreed.

	 

7

	 	
(b)             	
if it relates to a transfer pursuant
    to clause 4.1(c), be in the form of an Application (which shall be sufficient
    instructions for the purposes of this Agreement) and be received by the Custodian
    no later  than 3:00 p.m. (London time) on
    the day which is one London Business Day prior to the Withdrawal Date.
       
	 
	 	
(c)             	
if it relates to a withdrawal pursuant to clause 4.1(e) or (f), be received by the Custodian no later than 11:30 a.m. (London time) not less than two London Business Days prior to the Withdrawal Date unless
otherwise agreed and specify the name of the person or carrier that will collect the Bullion from the Custodian or the identity of the person to whom delivery is to be made, as the case may be;
    
	 	 	 
	 	and in all cases, specify the weight
      (in troy ounces of silver) of the Bullion to be debited to the Unallocated
      Account, the Withdrawal Date and any other information which the Custodian
    may, with the agreement of the Trustee from time to time require.

	
4.3              	
Right to Amend Procedure: The Custodian may amend the procedure for the withdrawal of Bullion from the Unallocated Account only where such amendment is caused
by a change in the Rules or procedures of the Relevant Association. Any such amendment will be subject to the conditions of the preceding clause 3.3 and will be promptly notified to the Trust and the Trustee, such notice to be given in advance of
implementation whenever practicable.
        
	 
	
4.4              	
Delivery Obligations: Unless otherwise instructed by the Trustee on behalf of the Trust or the relevant person, the
Custodian shall make any transportation and insurance arrangements in respect of delivery of Bullion in accordance with its usual practice. Where instructions are given, the Custodian shall use all reasonable efforts to comply with the same. The
Custodian shall not be obliged to effect any requested delivery if, in its reasonable opinion, this would cause the Custodian or its agents to be in breach of the Rules or other applicable law, court order or regulation; the costs incurred would be
excessive or delivery is impracticable for any reason. All insurance and transportation costs shall be for the account of the Trust.
        
	 
	
4.5              	
Risk: Where there is a shipment from the Custodian of Bullion, all right, title and risk in and to such Bullion shall
pass at the Point of Delivery to the relevant person for whose account the Bullion is being delivered.
    
	 
	
4.6              	
Allocation: Subject
    to clause 5.2 below, in the case of a transfer under clause 4.1(c), the Custodian
    will use its  commercially reasonable endeavours to complete the allocation
    of such deposits of Bullion by not later than 2:00 p.m. (London
    time) the London Business Day after receipt of notice given in the form prescribed
    in clause 4.2(b). Following the Custodian’s receipt of such notice,
    the Custodian shall identify bars or ingots of a weight most closely approximating,
    but not exceeding, the balance in the Unallocated Account and shall transfer
    such weight from the Unallocated Account to the Allocated Account. The Trustee
    acknowledges that the process of allocation of Bullion
    
	 

8

	 	
to the Allocated Account from the Unallocated Account may involve minimal adjustments to the weights of Bullion to be allocated to adjust such weight to the number of whole bars available.
        
	 
	
5.       	
INSTRUCTIONS
        
	 
	
5.1              	
Giving of Instructions: It is hereby agreed that only the Trustee shall have the right to give instructions to the Custodian for deposit of Bullion to or
withdrawal of Bullion from the Unallocated Account. All instructions given by the Trustee to the Custodian shall be given in writing and signed by two Authorized Signatories of the Trustee. The Trustee shall notify the Custodian in writing of the
names of the people who are authorized to give instructions on the Trustee’s behalf. Until the Custodian receives written notice to the contrary, the Custodian is entitled to assume that any of those people have full and unrestricted power to
give instructions on the Trustee’s behalf. The Custodian is also entitled to rely on any instructions which are from, or which purport to emanate from, any person who appears to have such authority.
        
	 
	
5.2              	
Continuous Allocation of Bullion: Without
    prejudice to clause 5.1 above, unless otherwise notified by the Trustee in
    writing, the Trustee hereby instructs the  Custodian that, whenever Bullion
    is to be transferred from an AP Account
    to the Metal Accounts, it will combine such Bullion with any Bullion then
    standing to the credit of the Unallocated Account (excluding Bullion which
    has been de-allocated in order to effect delivery of Bullion to a redeeming
    Shareholder or pursuant to other withdrawal occurring on such day) and to
    the fullest extent possible, transfer such Bullion to the Allocated Account
    such that the amount of Bullion that remains standing to the credit of the
    Trustee in the Unallocated Account does not exceed 1100 fine ounces at the
    close of each London Business Day.
    
	 
	
5.3              	
Account not to be Overdrawn: The Unallocated Account may not at any time have a debit balance thereon, and it is hereby agreed that no instruction shall be
valid to the extent that the effect thereof would be for the Unallocated Account to have a debit balance thereon.
        
	 
	
5.4              	
Amendments: Once given, instructions continue in full force and effect until they are cancelled, amended or superseded. Notice of amendment shall have effect
only upon actual receipt by the Custodian.
        
	 
	
5.5              	
Unclear or Ambiguous Instructions: If, in the Custodian’s opinion, any instructions are unclear or ambiguous, the Custodian shall use reasonable endeavours
(taking into account any relevant time constraints) to obtain clarification of those instructions from the Trustee and, failing that, the Custodian may in its absolute discretion and without any liability on its part, act upon what the Custodian
believes in good faith such instructions to be or refuse to take any action or execute such instructions until any ambiguity or conflict has been resolved to the Custodian’s satisfaction.
        
	 

9

	
5.6              	
Refusal to Execute: The Custodian will, where practicable, refuse to execute instructions if in the Custodian’s opinion they are or may be contrary to the
Rules or any applicable law.

        
	 
	
6.       	
CONFIDENTIALITY

        
	 
	
6.1              	
Disclosure to Others: Subject to clause 6.2, each of the Trustee and the Custodian shall respect the confidentiality of information acquired under this
Agreement and will not, without the other party’s consent, disclose to any other person any transaction or other information acquired about the other party, its business or the Trust under this Agreement.

        
	 
	
6.2              	
Permitted Disclosures: Each party accepts that from time to time any other party may be required by law or the Rules, or requested by a government department or
agency, fiscal body or regulatory or listing authority or as otherwise necessary in conducting the Trust’s business, to disclose information acquired under this Agreement. In addition, the disclosure of such information may be required by a
party's auditors, by its legal or other advisors, by a company which is in the same group of companies as a party (i.e., a subsidiary or holding company of a party) or (in the
case of the Trustee) by any beneficiary of the trusts constituted by the Trust Agreement. Each party irrevocably authorises the others to make such disclosures without further reference to such party.

        
	 
	
7.       	
CUSTODY SERVICES

        
	 
	
7.1              	
Appointment: The Trustee hereby appoints the Custodian to act as custodian of the Bullion in accordance with this Agreement and any Rules which apply to the
Custodian.

        
	 
	
7.2              	
Safekeeping of Bullion: The Custodian will be responsible for the safekeeping of the Bullion on the terms and conditions of this Agreement.

        
	 
	
7.3              	
Ownership of Bullion: The Custodian will identify in its books that the Bullion belongs to the Trustee (on trust for the Shareholders).

        
	 
	
7.4              	
Unallocated Account Reports: For each London Business Day, by no later than the following London Business Day, the Custodian will transmit to the Trustee by
HSBCnet, SWIFT, email or facsimile information showing the increases and decreases to the Bullion standing to the Trustee’s credit in the Unallocated Account, and
identifying separately each transaction and the New York business Day or London Business Day on which it occurred. On each London Business Day on which Bullion is deposited or that is a Withdrawal Date, the Custodian will send the Trustee a
notification as of 9:00 a.m. (New York time) of (i) each separate transaction transferring Bullion to the Unallocated Account, including the amount of Bullion transferred to the Unallocated Account and the name on the account held with the Custodian
from which such Bullion was transferred, (ii) the amount of Bullion transferred from the Unallocated Account to the Allocated Account and (iii) the amount of any remaining Bullion in the Unallocated Account, and the

        
	 

10

	 	Custodian will use commercially reasonable efforts
      to send the notification by 9:00 a.m. (New York time). In addition, the
      Custodian will provide the Trustee such information about the increases
      and decreases to the Bullion standing to the Trustee’s credit in the
      Unallocated Account on a same-day basis at such other times and in such
      other form as the Trustee and the Custodian shall agree. For each calendar
      month, the Custodian will provide the Trustee within a reasonable time
    after the end of the month a statement of account for the Unallocated Account.  
	 	 
	
8.       	
REPRESENTATIONS
      
	 
	
8.1              	
Trustee’s Representations: The
    Trustee represents and warrants to the Custodian
    and the Sponsor that (such representations and warranties being deemed to
    be repeated upon each occasion of withdrawal of Bullion under this Agreement):
   

	 	
(1)             	
it is duly constituted and validly existing under the laws of its jurisdiction of constitution;
    
	 
	 	
(2)             	
the Trustee has all necessary authority, powers, consents, licences and authorisations (which have not been revoked) and has taken all necessary action to enable it lawfully to enter into and perform its
duties and obligations under this Agreement;
 
	 
	 	
(3)             	
the persons entering into this Agreement on the Trustee’s behalf have been duly Authorized to do so;
  
	 
	 	
(4)             	
this Agreement and the obligations created under it are binding upon and enforceable against the Trustee, as Trustee, in accordance with its terms (subject to applicable principles of equity) and do not and
will not violate the terms of the Rules or any order, charge or agreement by which the Trustee is bound; and
 
	 
	 	
(5)             	
the Trustee has received an indemnification from the Trust in the Trust Agreement in respect of any loss, liability or expense arising out of or in connection with the performance of its obligations under
this Agreement incurred without (a) gross negligence, bad faith, willful misconduct or willful malfeasance on the part of the Trustee in connection with the performance of or (b) reckless disregard on the part of the Trustee of its obligations and
duties under this Agreement.
 
	 

	
8.2              	
Custodian’s Representations: The Custodian represents and warrants to the Trust that (such representations and
warranties being deemed to be repeated upon each occasion of withdrawal of Bullion under this Agreement):

    
	 
	 	
(1)             	
it is duly constituted and validly existing under the laws of its jurisdiction of constitution;

        
	 
	 	
(2)             	
the Custodian has all necessary authority, powers, consents, licences and authorisations (which have not been revoked) and has taken all

        
	 

11

	 	 	
necessary action to enable it lawfully to enter into and perform its duties and obligations under this Agreement;

        
	 
	 	
(3)             	
the persons entering into this Agreement on behalf of the Custodian have been duly authorized to do so; and
        
	 
	 	
(4)             	
this Agreement and the obligations created under it are binding upon the Custodian and enforceable against the Custodian in accordance with its terms (subject to applicable principles of equity) and do not
and will not violate the terms of the Rules or any order, charge or agreement by which the Custodian is bound.
       
	 

	
8.3              	
Sponsor’s Representations: The
    Sponsor represents and warrants to the Custodian and the Trustee that (such
    representations and warranties being deemed to be repeated upon each occasion
    of deposit of Bullion under this Agreement)

    
	 
	 	
(1)             	
it is duly constituted and validly existing under the laws of its jurisdiction of constitution;

        
	 
	 	
(2)             	
the Sponsor has all necessary authority, powers, consents, licences and authorisations (which have not been revoked) and has taken all necessary action to enable it lawfully to enter into and perform its
duties and obligations under this Agreement;

        
	 
	 	
(3)             	
the persons entering into this Agreement on behalf of the Sponsor have been duly authorised to do so;

        
	 
	 	
(4)             	
this Agreement and the obligations created under it are binding upon the Sponsor and enforceable against the Sponsor in accordance with its terms (subject to applicable principles of equity) and do not and
will not violate the terms of the Rules or any order, charge or agreement by which the Sponsor is bound; and

        
	 
	 	
(5)             	
the Sponsor has received an indemnification from the Trust in the Trust Agreement in respect of any loss, liability or expense arising out of or in connection with the performance of its obligations under
this Agreement incurred without (a) gross negligence, bad faith, willful misconduct or willful malfeasance on the part of the Sponsor in connection with the performance of or (b) reckless disregard on the part of the Sponsor of its obligations and
duties under this Agreement.

        
	 
	
9.       	
FEES AND EXPENSES

        
	 
	
9.1              	
Fees: There will be no fees charged by the Custodian for the services provided by it under this Agreement.

        
	 

12

	
9.2              	
Expenses: The
    Sponsor shall procure the payment to the Custodian on demand of all costs,
    charges and legal fees and expenses (excluding relevant taxes and VAT,  duties,
    other governmental charges, fees for storage and insurance of the Bullion
    and indemnification obligations of the Trustee under clause 11.5) incurred
    by the Custodian in connection with the performance of its duties and obligations
    under this  Agreement or otherwise in connection with the Bullion. The
    Trustee will procure payment on demand, solely from and to the extent of
    the assets of the Trust, of any other costs, charges and expenses not assumed
    by the Sponsor in this clause 9.2 (including any relevant taxes and VAT,
    duties, other governmental charges and indemnification claims of the Custodian
    payable by the Trustee pursuant to clause 11.5, but excluding fees for storage
    and insurance of the Bullion) incurred by the Custodian in connection with
    the performance of its duties and obligations under this Agreement or otherwise
    in connection with the Bullion.
       
	 
	
9.3              	
Credit Balances: No
    interest or other amount will be paid by us on any credit balance
    on an Unallocated Account.
       
	 
	9.4	Default Interest: If
      the Trustee or the Sponsor fails to procure payment to the Custodian of
      any amount when it is due, the Custodian reserves the right to charge interest
      (both before and after any judgement) on any such unpaid amount calculated
      at a rate equal to 1% above the overnight London Interbank Offered Rate
      (LIBOR) for the currency in which the amount is due. Interest will accrue
    on a daily basis and will be due and payable as a separate debt.

	
9.5              	
Recovery from Trust: Amounts payable pursuant to this clause 9 shall not be debited from the Unallocated Account, but shall be payable on behalf of the Trust,
and the Custodian hereby acknowledges that it will have no recourse against Bullion standing to the credit of the Unallocated Account or to the Trustee in respect of any such amounts.
        
	 
	
10.              	
VALUE ADDED TAX
        
	 
	
10.1             	
VAT Inclusive: All sums payable under this Agreement by the Trust to the Custodian shall be deemed to be inclusive of VAT if and to the extent VAT is properly
chargeable on any supplies made by the Custodian to the Trust pursuant to this Agreement.
        
	 
	
10.2             	
VAT Invoice: If
    VAT is properly chargeable on any supplies made by the Custodian to the Trust
    pursuant to this Agreement, the Custodian shall provide a valid
    VAT invoice to the Trust.
    
	 
	
11.              	
SCOPE OF RESPONSIBILITY
        
	 
	
11.1             	
Exclusion of Liability: The Custodian will use reasonable care in the performance of its duties under this Agreement and
will only be responsible for any loss or damage suffered as a direct result of any negligence, fraud or wilful default on its part in the performance of its duties, and in which case its liability will not exceed the market value of the Bullion lost
or damaged at the time such negligence, fraud or wilful default (calculating the value using the
        
	 

13

	 	
next available prices for Bullion of the same type and amount on the relevant London Bullion market following the occurrence of such negligence, fraud or wilful default) is discovered by the Custodian,
provided that the Custodian notifies the Trust and the Trustee promptly after any discovery of such lost or damaged Bullion. If the Custodian delivers from the Unallocated Account to the Allocated Account or to any other account held with the
Custodian Bullion that is not of the fine weight the Custodian has represented to the Trustee, recovery by the Trustee, to the extent such recovery is otherwise allowed, shall not be barred by any delay in asserting a claim because of the failure to
discover such loss or damage regardless of whether such loss or damage could or should have been discovered, provided, however, that if the Custodian delivers from the Unallocated Account to any location other than an account held with the Custodian
or with any other clearing member of the London Bullion Market Association pursuant to clauses 4.1(e) or (f) Bullion that is not of the fine weight the Custodian has represented to the Trustee, recovery by the Trustee, to the extent such recovery is
otherwise allowed, shall not be barred by any delay in asserting a claim because of the failure to discover such loss or damage regardless of whether such loss or damage could or should have been discovered, provided that any such claim is brought
within ten London Business Days. The Custodian shall not in any event be liable for any consequential loss, or loss of profit or goodwill, whether or not resulting from any negligence, fraud or wilful default on its part.
        
	 
	
11.2             	
No Duty or Obligation: The Custodian is under no duty or obligation to make or take any special arrangements or precautions beyond those required by the Rules
or as specifically set forth in this Agreement.
        
	 
	
11.3             	
Insurance: The Custodian will maintain such insurance for its business, including its bullion and custody business, as it deems appropriate in connection with
its custodial and other obligations and will be responsible for all costs, fees and expenses arising from the insurance policy or policies attributable to its relationship with the Trust. Consistent with industry standards, the Custodian maintains a
group insurance policy that covers all metals held in its vaults for the accounts of all its customers for a variety of events. The Trustee and the Sponsor may, subject to confidentiality restrictions, be provided with details of this insurance
coverage from time to time upon reasonable prior notice.
        
	 
	
11.4             	
Force Majeure: The
    Custodian shall not be liable for any delay in performance, or for the non-performance
    of any of its  obligations under this Agreement by reason of any cause beyond
    the Custodian’s reasonable control. This
    includes any act of God or war or terrorism or any breakdown, malfunction
    or failure of transmission, communication or computer facilities, industrial
    action, acts and regulations of any governmental or supra national bodies
    or authorities or regulatory or self-regulatory organization, for any reason,
    to perform its obligations; provided, however, that the Custodian agrees
    to use reasonable efforts to assist the Trustee in finding a replacement
    custodian (including, but not limited to, agreeing to an assignment of its
    rights and obligations hereunder) should any event described in this clause
    11.4 so prevent the Custodian from performing its obligations.
    
	 

14

	
11.5             	
Indemnity: The Trustee, solely from and to the extent of the assets of the Trust, shall indemnify and keep indemnified
the Custodian (on an after tax basis) on demand against all costs and expenses, damages, liabilities and losses (other than the expenses assumed by the Sponsor under clause 9.2) which the Custodian may suffer or incur, directly or indirectly in
connection with this Agreement except to the extent that such sums are due directly to the negligence, wilful default or fraud of the Custodian.

    
	 
	 	
The Sponsor shall indemnify and keep indemnified the Custodian (on an after tax basis) on demand against all costs and expenses, damages, liabilities and losses (other than VAT) which the Custodian may
suffer or incur, directly or indirectly in connection with any breach of the Sponsor’s obligation under this Agreement except to the extent that such sums are due directly to the negligence, wilful default or fraud of the Custodian.

        
	 
	
11.6             	
Third Parties: Except with respect to the Trust, which shall be considered a beneficiary of this entire Agreement, and the Sponsor, which shall be a beneficiary
(as applicable) of clauses 2.6 and 11.3, the Custodian does not owe any duty or obligation or have any liability towards any person who is not a party to this Agreement. This Agreement does not confer a benefit on any person who is not a party to
it. The parties to this Agreement do not intend that any term of this Agreement shall be enforceable by any person who is not a party to it and do intend that the Contracts (Rights of Third Parties) 1999 Act shall not apply to this Agreement.
Nothing in this paragraph is intended to limit the obligations hereunder of any successor Trustee of the Trust or to limit the right of any successor Trustee of the Trust to enforce the Custodian’s obligations hereunder.

        
	 
	
12.              	
TERM AND TERMINATION

        
	 
	
12.1             	
Method: Subject to clauses 12.2 and 12.3 below, either the Trustee or the Custodian may terminate this Agreement for any reason including if the Custodian
ceases to offer the services contemplated by this Agreement to its clients or proposes to withdraw from the Bullion business, by giving not less than 90 days’ written notice to the other party. Any such notice given by the Trustee must
specify:

        
	 
	 	
(1)             	
the date on which the termination will take effect (the “Termination Date”);

        
	 
	 	
(2)             	
the person to whom the Bullion is to be made available; and

        
	 
	 	
(3)             	
all other necessary arrangements for the redelivery of the Bullion to the order of the Trustee.

        
	 
	
12.2             	
Term: This Agreement shall have a fixed term up to and including five years and will automatically renew for a further
term of five years thereafter unless terminated by the Parties in accordance with this clause 12; provided that during such periods either the Trustee or the Custodian may
terminate the

    
	 

15

	 	agreement immediately
        upon written notice if:
	 	 	 
	 	(1)      	the Custodian ceases
          to offer the services contemplated by this Agreement to its clients
          or proposes to withdraw from the Bullion business;

	 
	 	(2)      	it becomes unlawful
          for the Custodian to be a party to this Agreement or to offer its services
          to the Trust on the terms contemplated by this Agreement or it becomes
          unlawful for the Trustee, Sponsor or the Trust to receive such services
          or for the Trustee or Sponsor to be a party to this Agreement;

	 
	 	(3)      	there is any event
          which, in the Custodian’s sole view, indicates the Trust’s
          insolvency or impending insolvency;

	 
	 	(4)      	there is any event
          which, in the Trustee’s sole view, indicates the Custodian’s
          insolvency or impending insolvency;

	 
	 	(5)      	in the event of the
          presentation of a winding up order, bankruptcy or analogous event in
          relation to either the Trustee or the Sponsor and no such replacement
          Trustee or Sponsor is identified within 90 days of such event.

	 
	 	(6)      	the Trust is to be
          terminated;

	 
	 	(7)      	the Trust Agreement
          is amended to remove the indemnification provisions described in 8.1(5)
          and 8.3(5) of this Agreement; or

	 
	 	(8)      	the Allocated Account
          Agreement ceases to be in full force and effect at any time, the Custodian
          shall have the right, by service of written notice on the Trustee to
          terminate this Agreement immediately.

	 

	
12.3             	
Change in Trustee: If there is any change in the identity of the Trustee in accordance with the Trust Agreement or of the Sponsor, then the Custodian, the
Trustee, the Sponsor and the Trust shall execute such documents and shall take such actions as the new Trustee and the outgoing Trustee or the new Sponsor and the outgoing Sponsor may reasonably require for the purpose of vesting in the new Trustee
or the new Sponsor (as the case may be) the rights and obligations of the outgoing Trustee, and releasing the outgoing Trustee or the outgoing Sponsor from its future obligations under this Agreement.

    
	 
	
12.4             	
Redelivery Arrangements: If the Trustee does not make arrangements acceptable to the Custodian for the redelivery of the Bullion the Custodian may continue to
store the Bullion, in which case the Custodian will continue to charge the fees and expenses payable under clause 10 of the Allocated Account Agreement. If the Trustee has not made arrangements acceptable to the Custodian for the redelivery of the
Bullion in the Unallocated Account within six months of the date specified in the termination notice as the Termination Date, the Custodian will be entitled to sell the Bullion and account to the Trustee for the proceeds.

        
	 

16

	
12.5             	
Existing Rights: Termination shall not affect rights and obligations then outstanding under this Agreement which shall
continue to be governed by this Agreement until all obligations have been fully performed.

        
	 
	
13.              	
NOTICES

        
	 
	
13.1             	
Transfer Notices: Any Transfer Notice shall be in writing in English and shall be marked “Urgent – This Requires Immediate Attention” and signed
(unless sent via HSBCnet) by or on behalf of the party giving it (or its duly Authorized representative). Any Transfer Notice shall be sent either by facsimile or via
HSBCnet or such other authenticated method as may, from time to time, be agreed between the parties. Any Transfer Notice shall be deemed to have been given, made or served upon
actual receipt by the recipient.

        
	 
	
13.2             	
General Notices: Any General Notice
    shall be in writing in English and shall be marked “Urgent – This Requires Immediate Attention” and
    shall be signed by or on behalf of the party giving it (or its duly Authorized
    representative).

    
	 
	 	
Any General Notice shall be given, made or served by sending the same by pre-paid registered post (first class if inland, first class airmail if overseas) or facsimile transmission. Any General Notice sent
by pre-paid registered post shall be deemed to have been received three London Business Days in the case of inland post or seven London Business Days in the case of overseas post after despatch. Any General Notice sent by facsimile shall be deemed
to have been given, made or served upon actual receipt by the recipient.

        
	 
	
13.3             	
The addresses and numbers of the parties for the purposes of clauses 13.1 and 13.2 are:

        
	 

			
	 	
The Custodian: 	
HSBC Bank USA, National Association, London Branch     
	 	         	
8 Canada Square        
	 	         	
London E14 5HQ 
	     
	 	         	
Attention: Tony J Dean 
	 	 	Facsimile No. +44 (0) 20 7992
    4489
	     
	 	
The Trustee:   	
The Bank of New York Mellon    
	 	         	
2 Hanson Place 
	 	         	
Brooklyn, New York 11217       
	     
	 	         	
Attention: Donald Guire        
	 	         	
Facsimile: 718-315-4927        
	     
	 	
The Sponsor:   	
ETF Securities USA LLC 
	 	         	
c/o ETF Securities Representative Office       
	 	         	
6th Floor 
	 	         	
2 London Wall Buildings        
	 	         	
London EC2M 5UU        
	 	         	
Telephone: +442074404330       

17

Attention: US Fund Services

	 	or such other address or facsimile number as
      shall have been notified (in accordance with this clause) to the other
    party hereto. 
	 	 
	
13.4             	
Recording of Calls: Each of the Custodian and the Trustee may record telephone conversations without use of a warning tone. Such records will be the recording
party’s sole property and accepted by the other parties hereto as evidence of the orders or instructions given.
 
	 
	
14.              	
GENERAL
      
	 

	
14.1             	
Role of Trustee: The Trustee is a party
    to this Agreement solely in its capacity as Trustee for the Shareholders
    and accordingly (i) the Trustee shall only be liable to satisfy any obligations
    under this Agreement, including any obligations or liabilities arising in
    connection with any default by the Trustee under this Agreement, to the extent
    of the assets held from time to time by the Trustee as trustee of the trusts
    constituted by the Trust Agreement (the “Trust Assets”)
to the extent authorized by the Trust Agreement and (ii) no recourse shall be
had to (a) any assets other than the Trust Assets, including any of the assets
held by the Trustee as trustee, co-trustee or nominee of a trust other than the
trusts constituted by the Trust Agreement, as owner in its individual capacity
or in any way other than as trustee of the trusts constituted by the Trust Agreement;
or (b) the Trustee for any assets that have been distributed by the Trustee to
the beneficiaries of the trusts constituted by the Trust Agreement.
        
	 
	14.2   	
No Advice: The Custodian’s duties and obligations under this Agreement do not include providing the other parties hereto with investment advice. In asking
the Custodian to open and maintain the Unallocated Account, the Trustee acknowledges that it is acting in reliance on its own judgment and the Custodian shall not owe the Trustee or the Trust any duty to exercise any judgment on their behalf as to
the merits or suitability of any deposits into, or withdrawals from, the Unallocated Account.
        
	 
	14.2   	
Rights and Remedies: The Custodian hereby waives any right it has or may hereafter acquire to combine, consolidate or
merge the Metal Accounts with any other account of the Trust or the Trustee or to set off any liabilities of the Trust or of the Trustee to the Custodian and agrees that it may not set off, transfer or combine or withhold payment of any sum standing
to the credit or to be credited to the Metal Accounts in or towards or conditionally upon satisfaction of any liabilities to it of the Trust or the Trustee. Subject thereto, the Custodian’s rights under this Agreement are in addition to, and
independent of, any other rights which the Custodian may have at any time in relation to the Bullion.

        
	 
	14.2   	
Assignment: This Agreement is for the benefit of and binding upon the parties hereto and their respective successors and
assigns. Save as expressly provided

        
	 

18

	 	
herein, no party may assign, transfer or encumber, or purport to assign, transfer or encumber any right or obligation under this Agreement unless the other parties otherwise agree in writing except that
consent is not required where the Custodian assigns, transfers or encumbers any right or obligation under this Agreement to an Affiliate. This clause shall not restrict the Custodian’s power to merge or consolidate with any party, or to dispose
of all or part of its custody business and further provided that this clause shall not restrict the Trustee from assigning its rights hereunder to a Shareholder to the extent required for the Trust to fulfill its obligations under the Trust
Agreement.
        
	 
	
14.5             	
Amendments: Any amendment to this Agreement must be agreed in writing and be signed by all of the parties hereto. Unless
otherwise agreed, an amendment will not affect any legal rights or obligations which may already have arisen.
    
	 
	
14.6             	
Partial Invalidity: If any of the clauses (or part of a clause) of this Agreement becomes invalid or unenforceable in any way under the Rules or any law, the
validity of the remaining clauses (or part of a clause) will not in any way be affected or impaired.
        
	 
	
14.7             	
Entire Agreement: This document represents the entire agreement between the parties in respect of its subject matter, and excludes any prior agreements or
representations the save for any made with fraudulent intent.
        
	 
	
14.8             	
Counterparts: This Agreement may be executed in any number of counterparts each of which when executed and delivered is an original, but all the counterparts
together constitute the same agreement.
        
	 
	
14.9             	
Business Days: If any obligation falls due to be performed on a day which is not a New York Business Day or London
Business Day, as the case may be, then the relevant obligations shall be performed on the next succeeding New York Business Day or London Business Day.
    
	 
	
14.10            	
Prior Agreements: The
    Custodian, or any member of the HSBC group of companies (the “HSBC
    Group”) may trade in Shares for its own account as principal, may
    have underwritten or may underwrite an issue of Shares or, together with
    any such entities’ directors, officers or employees, may have a long
    or short position in  Shares or in any related security or instrument. Brokerage
    or other fees may be earned by any member of the HSBC Group or persons associated
    with them in respect of any business transacted by them in all or any of
    the aforementioned securities or instruments. This Agreement supersedes and
    replaces any prior existing agreement between the parties hereto relating
    to the same subject matter.
    
	 
	
15.              	
GOVERNING LAW AND JURISDICTION
        
	 
	
15.1             	
Governing Law: This Agreement is governed by, and will be construed in accordance with, English law.
        
	 

19

	
15.2             	
Jurisdiction: The Trustee and the Custodian agree that the courts of the State of New York, in the United States of America, and the United States federal court
located in the Borough of Manhattan in such state are to have jurisdiction to settle any disputes or claims which may arise out of or in connection with this Agreement and, for these purposes the Trustee and the Custodian irrevocably submits to the
non-exclusive jurisdiction of such courts, waive any claim of forum non conveniens and any objection to laying of venue, and further waive any personal service.
     
	 
	
15.3             	
Waiver of Immunity: To the extent that the Trustee may in any jurisdiction claim for it as Trustee, the Trust or its assets any immunity from suit, judgment,
enforcement or otherwise howsoever, the Trustee agrees not to claim and irrevocably waives any such immunity which it would otherwise be entitled to (whether on grounds of sovereignty or otherwise) to the full extent permitted by the laws of such
jurisdiction.
        
	 
	
16.4             	
Service of Process: Process by which any proceedings are begun may be served on it by being delivered to the address
specified below. This does not affect any right to serve process in another manner permitted by law.
 
	 
	 	
Custodian’s Address for Service of Process:
     
	 
	 	HSBC Bank USA, National Association,
        London Branch 

        8 Canada Square 

        London, E14 5HQ 

        Attention: Precious Metals
    Department
    
	 
	 	Trustee’s Address for Service of Process: 
	 
	 	The Bank of New York Mellon 

    One Wall Street 

    New York, New York 10286

    Attention: Legal Department 
	 
	 	Sponsor’s Address for Service of Process:

    ETF Securities USA LLC 

    c/o ETF Securities Representative Office 

    6th Floor 

    2 London Wall Building 

    London EC2M 5UU 

20

EXECUTED by the parties:

Signed on behalf of and for

HSBC BANK USA, NATIONAL ASSOCIATION, LONDON BRANCH by

			
	
Signature
        	 
        	
/s/ Dem Rousos
        
	
Name
        	 
        	
Dem Rousos
        
	
Title
        	 
        	
Authorized Signatory
        

Signed on behalf of and for

THE BANK OF NEW YORK MELLON solely in its capacity as trustee of the ETFS Silver Trust and not individually by

			
	
Signature      	   	
/s/ Andrew T. Pfeifer  
	
Name   	   	
Andrew T. Pfeifer      
	
Title  	   	
Vice President 

Signed on behalf of and for ETF SECURITIES USA LLC by

			
	
Signature      	   	
/s/ Graham Tuckwell    
	
Name   	   	
Graham Tuckwell        
	
Title  	   	
President and Chief Executive Officer

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