Document:

EXHIBIT 10.2

TRUST SERVICING AGREEMENT

 

TABLE OF CONTENTS

 

	
1

	
INTENTION OF THE PARTIES; DEFINITIONS

	
3

	
1.1

	
Intention of the Parties

	
3

	
1.2

	
Definitions; Interpretation

	
3

	
2

	
WHAT THE ADMINISTRATIVE AGENT IS REQUIRED TO DO

	
6

	
2.1

	
The Services

	
6

	
2.2

	
No Duty to Monitor Compliance

	
7

	
2.3

	
No Responsibility for Tax Returns

	
7

	
2.4

	
Storage of Records

	
8

	
2.5

	
Compliance with Laws and Regulations

	
8

	
2.6

	
Change Control

	
8

	
3

	
INSTRUCTIONS

	
9

	
3.1

	
Acting on Instructions; Unclear Instructions

	
9

	
3.2

	
Verification and Security Procedures

	
9

	
3.3

	
Instructions Contrary To Applicable Law

	
9

	
3.4

	
Cut-Off Times

	
10

	
3.5

	
Electronic Access

	
10

	
4

	
FEES AND EXPENSES OWING TO THE ADMINISTRATIVE AGENT

	
10

	
4.1

	
Fees and Expenses

	
10

	
5

	
ADDITIONAL PROVISIONS RELATING TO THE TRUST

	
10

	
5.1

	
Representations of the Trust, the Sponsor and the Administrative Agent

	
10

	
5.2

	
The Trust and the Sponsor to Provide Certain Information to the Administrative Agent

	
11

	
5.3

	
Information Used to Provide the Service

	
11

	
6

	
WHERE THE ADMINISTRATIVE AGENT IS LIABLE TO THE TRUST OR THE SPONSOR

	
11

	
6.1

	
Standard of Care; Liability

	
12

	
6.2

	
Force Majeure

	
12

	
6.3

	
The Administrative Agent May Consult with Counsel

	
12

	
6.4

	
Limitations of the Administrative Agent's Liability

	
13

	
7

	
TERM AND TERMINATION

	
14

	
7.1

	
Term and Termination

	
14

	
7.2

	
Other Grounds for Termination

	
14

	
7.3

	
Consequences of Termination

	
15

	
7.4

	
Transition following Termination

	
15

	
8

	
MISCELLANEOUS

	
15

	
8.1

	
Notices

	
15

	
8.2

	
Successors and Assigns

	
16

	
8.3

	
Entire Agreement

	
16

	
8.4

	
Insurance

	
16

	
8.5

	
Governing Law and Jurisdiction

	
16

	
8.6

	
Severability; Waiver; and Survival

	
17

	
8.7

	
Confidentiality

	
17

	
8.8

	
Use of the Administrative Agent's Name

	
17

	
8.9

	
Delegation

	
18

 

  

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8.1

	
Third Party Rights

	
18

	
8.11

	
Limitations of the Sponsor's Liability

	
18

	
8.12

	
Counterparts

	
18

	
SCHEDULE 1 Master Terms Addendum

	
20

	
SCHEDULE 2 Accounting Services

	
21

	
SCHEDULE 3 Administration Services

	
23

	
ANNEX A Electronic Access

	
26

  

2

  

TRUST SERVICING AGREEMENT

 

This Trust Servicing Agreement, dated [●], 2011, is among J.P. Morgan Physical Copper Trust, a Delaware statutory trust (the “Trust”), J.P. Morgan Commodity ETF Services LLC, a Delaware limited liability company (the “Sponsor”), and JPMorgan Chase Bank, N.A., a national banking association (the “Administrative Agent”).

 

 

	
  

	
1.

	
Intention of the Parties; Definitions

 

	
  

	
1.1

	
Intention of the Parties.

 

	
  

	
(a)

	
The Trust is a Delaware statutory trust that was formed on [●], 2010.  The investment methods and objectives of the Trust are described in the Trust’s Prospectus.

 

	
  

	
(b)

	
The Sponsor serves as sponsor of the Trust pursuant to the Amended and Restated Trust Agreement of the Trust, dated as of [●], 2011, between the Sponsor and Wilmington Trust Company (as amended or restated from time to time, the “Trust Agreement”).

 

	
  

	
(c)

	
The Sponsor and the Trust have requested the Administrative Agent to provide the services described in this Agreement, and the Administrative Agent has agreed to provide such services, subject to the terms and conditions hereof.

 

 

	
  

	
1.2

	
Definitions; Interpretation.

 

	
  

	
(a)

	
As used in this Agreement, the following terms have the meaning hereinafter stated.  Capitalized terms used in this Agreement but not defined in this Section 1.2(a) shall have the meaning given to such terms in the applicable schedule, exhibit, annex or appendix hereto.

 

“Accounting Services” means the services, obligations, duties and responsibilities of the Administrative Agent pursuant to Schedule 2 hereto.

 

“Administration Services” means the services, obligations, duties and responsibilities of the Administrative Agent pursuant to Schedule 3 hereto.

 

“Administrative Agent” has the meaning given in the Preamble of this Agreement.

 

“Administrative Agent Indemnitees” means the Administrative Agent and any Supervised Persons.

 

“Affiliate(s)” means, with respect to any person, any other person controlling, controlled by, or under common control with such person.

 

“Affiliated Trust” means any investment vehicle that is sponsored by the Sponsor and has an investment methodology similar to that of the Trust.

 

“Agency Agreement” means the Agency Services Agreement among the Administrative Agent, the Trust and the Sponsor, dated as of [●], 2011, as amended or restated from time to time.

 

“Agreement” means this Trust Servicing Agreement, including the schedules, exhibits and appendices hereto, in each case as amended from 

 

  

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time to time in accordance with the terms hereof.

 

“Applicable Law” means the applicable federal and state laws of the United States, including the Securities Act, the Exchange Act and the Commodity Exchange Act, as well as any other applicable statute, treaty, rule, regulation or common law and any applicable decree, injunction, judgment, order, formal interpretation or ruling issued by a court or governmental, regulatory or self-regulatory body.

 

“Authorized Person” means, as applicable, an Authorized Person of the Trust, an Authorized Person of the Sponsor or an Authorized Person of the Warehouse-keeper.

 

“Authorized Person of the Sponsor” means any person who has been designated by the Sponsor to act on behalf of Sponsor under this Agreement.  Such persons will continue to be Authorized Persons of the Sponsor until such time as the Administrative Agent receives, and has had reasonable time to act upon, Instructions from the Sponsor that any such person is no longer an Authorized Person of the Sponsor.

 

“Authorized Person of the Trust” means any person who has been designated by the Trust to act on behalf of the Trust under this Agreement. Such persons will continue to be Authorized Persons of the Trust until such time as the Administrative Agent receives, and has had reasonable time to act upon, Instructions from the Trust that any such person is no longer an Authorized Person of the Trust.

 

“Authorized Person of the Warehouse-keeper” means, with respect to the Warehouse Administrator or a Warehouse-keeper Entity, any person who has been designated by the Warehouse Administrator or the Warehouse-keeper Entity, as applicable, to act on behalf of the Warehouse Administrator or such Warehouse-keeper Entity.  Such persons will continue to be Authorized Persons of the Warehouse-keeper until such time as Bank receives, and has had reasonable time to act upon, Instructions from the Warehouse Administrator or the Warehouse-keeper Entity, as applicable, that any such person is no longer an Authorized Person of the Warehouse-keeper.

 

“Change” has the meaning given in Section 2.6.

 

“Change Control” means the process set out in Section 2.6.

 

“Change Request” has the meaning given in Section 2.6.

 

“Commodity Exchange Act” means the U.S. Commodity Exchange Act of 1936, as amended.

 

“Confidential Information” means and includes all non-public information concerning the Trust, the Sponsor or the Warehouse-keeper that the Administrative Agent receives in the course of providing services under this Agreement; provided that Confidential Information shall not include information which is or becomes available to the general public by means other than the Administrative Agent’s breach of the terms of this Agreement or information that the Administrative Agent obtains on a non-confidential basis from a person who is not known to the Administrative Agent to be subject to any obligation of confidence to any person with respect to that 

 

  

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information.

 

“Custody Agreement” means the Custody Agreement among the Administrative Agent, the Trust and the Sponsor, dated as of [●], 2011, as amended or restated from time to time.

 

“Damages” means any liabilities, losses, claims, costs, damages, penalties, fines, obligations or expenses of any kind whatsoever (including, without limitation, reasonable fees and disbursements of attorneys, accountants, consultants or experts).

 

“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.

 

“Fees” means the payments described in Article 4, to be made by the Sponsor to the Administrative Agent for the Services.

 

“Initial Term” has the meaning given in Section 7.1.

 

“Instruction” means an instruction that (i) has been verified in accordance with a Security Procedure or (ii) if no Security Procedure is applicable, the recipient reasonably believes in good faith to have been given by an Authorized Person.

 

“Master Terms Addendum” means the Master Terms Addendum attached hereto as Schedule 1, as amended from time to time in accordance with its terms.

 

“Master Terms Services” means the services, obligations, duties and responsibilities of the Administrative Agent pursuant to the Master Terms Addendum attached hereto as Schedule 1.

 

“Prospectus” means the prospectus that is contained in, and forms a part of, the Trust’s Registration Statement, as amended, supplemented or updated from time to time.

 

“Registration Statement” means the registration statement of the Trust filed with the SEC under the Securities Act, as amended, supplemented or updated from time to time.

 

“Renewal Term” has the meaning given in Section 7.1.

 

“SEC” means the U.S. Securities and Exchange Commission.

 

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

 

“Security Procedure” means any commercially reasonable security procedure to be followed (i) by the Trust, the Sponsor or the Warehouse-keeper, as applicable, upon the issuance of an Instruction by the Administrative Agent or (ii) by the Administrative Agent upon the receipt of an Instruction from the Trust, the Sponsor or the Warehouse-keeper, as applicable, so as to enable the Administrative Agent to verify that such Instruction is authorized, as set forth in operating procedures documentation in effect from time to time with respect to the Services to be provided pursuant to this Agreement.  A Security Procedure may involve, without limitation, the use of algorithms, codes, passwords, encryption or telephone call-backs.  Each of the Administrative Agent, the Trust and the Sponsor acknowledge that Security Procedures are designed 

 

  

5

  

 

 

to verify the authenticity of, and not detect errors in, Instructions.  For the avoidance of doubt, the parties agree that a SWIFT message issued in the name of Trust through any third party utility agreed upon by the parties as being a method for providing Instructions and authenticated in accordance with that utility’s customary procedures, shall be deemed to be an authorized Instruction.

 

“Services Commencement Date” means [●], 2011.

 

“Services” means the Master Terms Services, the Accounting Services and the Administration Services, each as applicable.

 

“Shares” means the shares issued by the Trust.

 

“Shareholder” means a record or beneficial holder of Shares.

 

“Sponsor” has the meaning given in the Preamble of this Agreement.

 

“Supervised Persons” has the meaning given in Section 2.2.

 

“Trust” has the meaning given in the Preamble of this Agreement.

 

“Trust Agreement” has the meaning given in Section 1.1(b) of this Agreement.

 

“Valuation Agent” has the meaning given in Schedule 1 hereto.

 

“Warehouse Administrator” has the meaning given in Schedule 1 hereto.

 

“Warehouse-keeper” has the meaning given in Schedule 1 hereto.

 

“Warehouse-keeper Entity” has the meaning given in Schedule 1 hereto.

 

	
  

	
(b)

	
Headings are for reference and convenience only and are not intended to affect interpretation.

 

	
  

	
(c)

	
References to Articles and Sections are to Articles and Sections of this Agreement or of the applicable schedule, exhibit, annex or appendix, as context requires, and references to sub-sections and paragraphs are to sub-sections of the Sections and paragraphs of the sub-sections in which they appear.

 

	
  

	
(d)

	
Unless the context requires otherwise, references in this Agreement to “persons” shall include legal as well as natural entities; references importing the singular shall include the plural (and vice versa); use of the generic masculine pronoun shall include the feminine; and use of the term “including” shall be deemed to mean “including but not limited to”.

 

 

	
  

	
2.

	
What the Administrative Agent is Required to Do

 

	
  

	
2.1

	
The Services.

 

	
  

	
(a)

	
The Trust and the Sponsor hereby appoint the Administrative Agent to act as administrative agent with respect to the Trust, and the Administrative Agent hereby accepts such appointment and agrees to provide the Services (subject to any requirements or restrictions imposed on the performance of the Services by Applicable Law), until this Agreement is terminated in accordance with its terms.

 

  

6

  

 

	
  

	
(b)

	
The Trust and the Sponsor shall not permit the Registration Statement to be amended in any way inconsistent with the terms and conditions of this Agreement.

 

	
  

	
(c)

	
The Administrative Agent shall act as agent of the Trust and the Sponsor solely with respect to the duties of the Administrative Agent described in this Agreement, provided, however, that the foregoing shall not be construed to limit the ability of the Trust, the Sponsor and the Administrative Agent to enter into separate written agreements for the provision of services to the Trust or the Sponsor, including without limitation the Agency Agreement.

 

	
  

	
(d)

	
The Trust and the Sponsor hereby acknowledge that the Administrative Agent is not providing any legal, tax or investment advice in providing the Services.

 

	
  

	
(e)

	
The Administrative Agent hereby acknowledges and agrees that (i) J.P. Morgan Chase Bank, N.A., has entered or will enter into the Agency Agreement and the Custody Agreement with the Trust and the Sponsor, (ii) the Master Terms Addendum attached hereto as Schedule 1 shall also be a schedule to, and comprise a part of, the Agency Agreement and the Custody Agreement, and (iii) upon the effectiveness of this Agreement, the Agency Agreement and the Custody Agreement, J.P. Morgan Chase Bank, N.A., shall perform all duties, responsibilities, obligations and services that such Master Terms Addendum states are to be provided by the “Administrative Agent”, without regard to whether such services are being provided pursuant to this Agreement, the Agency Agreement or the Custody Agreement.

 

	
  

	
2.2

	
No Duty to Monitor Compliance.

 

Each party hereto acknowledges that, except as expressly set forth in this Agreement, the duties and obligations of the Administrative Agent hereunder shall not constitute a duty to monitor the compliance of any other party hereto, any delegate of any such person, or any other person (other than the Administrative Agent and any person to whom the Administrative Agent has delegated or assigned any of the Administrative Agent’s duties hereunder, including any sub-administrator or sub-contractor appointed by the Administrative Agent, and any director, officer, employee or agent of any of the foregoing persons (collectively, the “Supervised Persons”)), with any restriction or guideline imposed on the Trust by the Registration Statement or any other document, or by law or regulation or otherwise, and further, that the duties and obligations of the Administrative Agent hereunder shall not extend to enforcing compliance by any other party hereto, any delegate of any such person, or any other person (other than the Supervised Persons) with any such restrictions or guidelines.

 

	
  

	
2.3

	
No Responsibility for Tax Returns.

 

Notwithstanding anything herein to the contrary, while the Administrative Agent shall provide the Trust with information regarding taxable events in the United States in relation to the Trust, the Administrative Agent shall not be responsible for preparing or filing any tax reports or returns on behalf of the Trust or the Shareholders, except as expressly set forth in this Agreement.

 

  

7

  

 

	
  

	
2.4

	
Storage of Records.

 

The Administrative Agent is authorized to maintain all accounts, registers, corporate books and other documents on magnetic tape or disc, or on any other mechanical or electronic system; provided that they are capable of being reproduced in legible form in accordance with Applicable Law.  Where any Authorized Person, including any Trust’s auditor, wishes to inspect such documents maintained by the Administrative Agent, the Administrative Agent shall provide legible documents, for the discharge of the Trust’s and its auditors’ duties under Applicable Law.  The Trust shall be responsible for the payment of any extraordinary research and copying costs associated with any such request.

 

	
  

	
2.5

	
Compliance with Laws and Regulations.

 

The Administrative Agent will comply with Applicable Law in the United States with respect to the provision of the Services.  The Trust undertakes to comply with Applicable Law in the United States and in each state in which the Trust conducts business, to the extent that compliance with such Applicable Law is relevant to the provision or receipt of the Services or the marketing of the Trust.

 

	
  

	
2.6

	
Change Control.

 

	
  

	
(a)

	
If any party wishes to propose any amendment or modification to, or variation of, the Services (including the scope or details of the Services) (a “Change”), then it shall notify the other parties of that fact by sending a request (a “Change Request”) to the other parties, specifying in as much detail as is reasonably practicable the nature of the Change.  The Administrative Agent shall maintain a log of all Change Requests.

 

	
  

	
(b)

	
Promptly following the receipt of a Change Request, the parties determine in good faith whether to implement the Change Request, whether the Fees should be modified in light of the Change, and the basis upon which the Administrative Agent will be compensated for implementing the Change Request.

 

	
  

	
(c)

	
If a Change is required due to a change to Applicable Law, the parties shall follow the process set forth in this Section 2.6.

 

	
  

	
(d)

	
The Administrative Agent shall bear its own costs with respect to implementing a Change, except that:

 

	
  

	
(i)

	
the Administrative Agent shall be entitled to compensation for changes to software required to implement such Change, to the extent that such software has been developed or customized specifically for the Trust and any Affiliated Trust; and

 

	
  

	
(ii)

	
the Administrative Agent shall be entitled to compensation for (A) any Change that is required as a result of a change in Applicable Law that affects the Trust in a materially different way from the way such change in Applicable Law affects the Administrative Agent’s other customers (other than any Affiliated Trust) and (B) any Change that does not fall under clause (A) but that the Trust or the Sponsor requires the Administrative Agent to implement in a way different from the way the Administrative Agent reasonably intends to implement 

 

  

8

  

 

such Change for its other customers.

 

If the change in Applicable Law results in (i) a Change that increases the cost to the Administrative Agent of providing the Services or (ii) an increase in the Administrative Agent’s risk associated with provision of the Services, the Administrative Agent shall be entitled to an appropriate increase in the Fees, the amount of which shall be determined in accordance with this Section 2.6.

 

	
  

	
3.

	
Instructions

 

	
  

	
3.1

	
Acting on Instructions; Unclear Instructions.

 

	
  

	
(a)

	
Each of the Trust and the Sponsor hereby authorizes the Administrative Agent to accept, rely upon and act upon any Instructions received by it without inquiry.  The Trust shall indemnify the Administrative Agent Indemnitees against, and hold each of them harmless from, any Damages that may be imposed on, incurred by, or asserted against the Administrative Agent Indemnitees as a result of any action taken or omitted to be taken in accordance with any Instruction unless the Damages result from an act of negligence, fraud or willful misconduct on the part of the Administrative Agent Indemnitees with respect to the manner in which such Instructions are followed.

 

	
  

	
(b)

	
The Administrative Agent shall promptly notify an Authorized Person if an Instruction does not contain all information reasonably necessary for the Administrative Agent to carry out the Instruction.  The Administrative Agent may decline to act upon an Instruction if it does not receive clarification or confirmation satisfactory to it.  The Administrative Agent will not be liable for any loss arising from any reasonable delay in carrying out any such Instruction while it seeks such missing information, clarification or confirmation or in declining to act upon any Instruction for which it does not receive clarification satisfactory to it.

 

	
  

	
3.2

	
Verification and Security Procedures.

 

	
  

	
(a)

	
The Administrative Agent, the Trust and the Sponsor shall comply with any applicable Security Procedures with respect to the delivery or authentication of Instructions and shall ensure that any codes, passwords or similar devices are reasonably safeguarded.

 

	
  

	
(b)

	
Each of the Administrative Agent, the Trust and the Sponsor may record any telephone communications with any other party hereto.

 

	
  

	
3.3

	
Instructions Contrary To Applicable Law.

 

The Administrative Agent need not act upon Instructions that it reasonably believes to be contrary to Applicable Law, provided that in any such case, the Administrative Agent shall notify the Trust and the Sponsor as soon as practicable.  For the avoidance of doubt, notwithstanding the foregoing, the Administrative Agent will be under no duty to investigate whether any Instructions comply with Applicable Law.

 

  

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3.4

	
Cut-Off Times.

 

The Administrative Agent has established cut-off times for receipt of certain Instructions.  The Administrative Agent has provided information regarding such cut-off times to the Trust and the Sponsor and will notify the Trust and the Sponsor promptly of any changes thereto.  If the Administrative Agent receives an Instruction after its established cut-off time, the Administrative Agent will attempt to act upon the Instruction on the day requested if the Administrative Agent deems it practicable to do so or otherwise as soon as practicable after that day.  Nothing in this Section 3.4 shall be deemed to restrict or limit the obligations of the Administrative Agent to comply with any requirements of this Agreement that specify a cut-off time or period of time for any particular activity, or any applicable operating procedures documentation adopted by the parties from time to time.

 

	
  

	
3.5

	
Electronic Access.

 

Access by the Trust and the Sponsor to certain applications or products of the Administrative Agent, via the Administrative Agent’s website or otherwise, shall be governed by this Agreement, including the terms and conditions set forth in Annex A.

 

	
  

	
4.

	
Fees and Expenses Owing to the Administrative Agent

 

	
  

	
4.1

	
Fees and Expenses.

 

	
  

	
(a)

	
The Sponsor shall pay the Administrative Agent a fee for its services on behalf of the Trust, in the amount and in the manner agreed to between the Sponsor and the Administrative Agent from time to time.

 

	
  

	
(b)

	
The Trust shall be responsible for the payment of all the reasonable disbursements of the Administrative Agent in connection with governmental or similar fees, charges, taxes, duties and imposts levied in or by any relevant authority in the United States on or in respect of the Trust that are incurred by the Administrative Agent.  The Trust shall reimburse the Administrative Agent for any of the foregoing and for all reasonable out-of-pocket expenses including without limitation telephone, printing, SAS 70 reviews, pricing vendor charges, postage, stationery and expenses of a similar nature that the Administrative Agent may incur in the execution of its duties under this Agreement.

 

	
  

	
(c)

	
Invoices will be payable within thirty (30) days of the date of the invoice.  If the Trust or the Sponsor disputes an invoice, it shall nevertheless pay on or before the date that payment is due such portion of the invoice as is not subject to a bona fide dispute.  Without prejudice to the Administrative Agent’s other rights, the Administrative Agent reserves the right to charge interest on overdue amounts from the due date until actual payment at such rate as the Administrative Agent customarily charges for similar overdue amounts.

 

	
  

	
5.

	
Additional Provisions Relating to the Trust

 

	
  

	
5.1

	
Representations of the Trust, the Sponsor and the Administrative Agent.

 

  

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(a)

	
The Trust represents and warrants that (i) assuming due execution and delivery of this Agreement by the Administrative Agent and the Sponsor, this Agreement is the Trust’s legal, valid and binding obligation, enforceable against the Trust in accordance with its terms, (ii) it has full power and authority to enter into and has taken all necessary action to authorize the execution of this Agreement, and (iii) it has not relied on any oral or written representation made by the Administrative Agent or any person on its behalf, and acknowledges that this Agreement sets out to the fullest extent the duties of the Administrative Agent hereunder.

 

	
  

	
(b)

	
The Sponsor represents and warrants that (i) assuming due execution and delivery of this Agreement by the Administrative Agent and the Trust, this Agreement is the Sponsor’s legal, valid and binding obligation, enforceable against the Sponsor in accordance with its terms, (ii) it has full power and authority to enter into and has taken all necessary action to authorize the execution of this Agreement, and (iii) it has not relied on any oral or written representation made by the Administrative Agent or any person on its behalf, and acknowledges that this Agreement sets out to the fullest extent the duties of the Administrative Agent hereunder.

 

	
  

	
(c)

	
The Administrative Agent represents and warrants that (i) assuming due execution and delivery of this Agreement by the Trust and the Sponsor, this Agreement is the Administrative Agent’s legal, valid and binding obligation, enforceable against the Administrative Agent in accordance with its terms, (ii) it has full power and authority to enter into and has taken all necessary action to authorize the execution of this Agreement, and (iii) it has not relied on any oral or written representation made by the Trust or the Sponsor or any person on the Trust’s or the Sponsor’s behalf, and acknowledges that this Agreement sets out to the fullest extent the duties of the Trust and the Sponsor hereunder.

 

	
  

	
5.2

	
The Trust and the Sponsor to Provide Certain Information to the Administrative Agent.

 

Upon request, the Trust and the Sponsor will promptly provide to the Administrative Agent such information about the Trust and its financial status as the Administrative Agent may reasonably request, including the Trust Agreement and the Trust’s current audited and unaudited financial statements, Registration Statement and any contracts, regulatory documents or opinions from legal counsel or accountants that relate to the Services described in this Agreement that either (a) have been prepared in the ordinary course of the Trust’s business or (b) are customarily provided in connection with agreements to provide services similar or comparable to the Services hereunder.

 

	
  

	
5.3

	
Information Used to Provide the Service.

 

The Trust agrees with the Administrative Agent that any information that the Trust or the Sponsor provides to the Administrative Agent pursuant to this Agreement shall be materially complete and accurate in order to enable the Administrative Agent to perform its responsibilities pursuant to this Agreement.

 

	
  

	
6.

	
Where the Administrative Agent is Liable to the Trust or the Sponsor

 

  

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6.1

	
Standard of Care; Liability.

 

	
  

	
(a)

	
The Administrative Agent will use reasonable care in performing its obligations under this Agreement.  The Administrative Agent will not be responsible for any loss or damage suffered by the Trust or the Sponsor with respect to any matter as to which the Administrative Agent has satisfied its obligation of reasonable care unless the same results from an act of negligence, fraud or willful misconduct on the part of the Administrative Agent.

 

	
  

	
(b)

	
The Administrative Agent will be liable for the Trust’s and the Sponsor’s Damages to the extent such Damages result from the Administrative Agent’s negligence, fraud or willful misconduct in performing its duties as set out in this Agreement.  Nevertheless, under no circumstances will the Administrative Agent be liable for any indirect, incidental, consequential or special damages (including, without limitation, lost profits or business) of any form incurred by any person or entity, whether or not foreseeable and regardless of (i) the type of action in which such a claim may be brought, (ii) the Administrative Agent’s performance under this Agreement, or (iii) the Administrative Agent’s role as a service provider to the Trust.

 

	
  

	
(c)

	
The Trust will indemnify the Administrative Agent Indemnitees against, and hold them harmless from, any Damages that may be imposed on, incurred by or asserted against any of the Administrative Agent Indemnitees in connection with or arising out of the Administrative Agent’s performance under this Agreement, provided that the Administrative Agent Indemnitees have not acted with negligence or engaged in fraud or willful misconduct in connection with the Damages in question.

 

	
  

	
6.2

	
Force Majeure.

 

The Administrative Agent will maintain and update from time to time business continuation and disaster recovery procedures with respect to its global business that it determines from time to time meet reasonable commercial standards.  However, to the extent permitted by Applicable Law, the Administrative Agent will have no liability for any damage, loss, expense or liability of any nature that the Trust or the Sponsor may suffer or incur, caused by an act of God, fire, flood, civil or labor disturbance, war, terrorism, act of any governmental authority or other act or threat of any authority (de jure or de facto), legal constraint, fraud or forgery (other than on the part of the Administrative Agent or its Supervised Persons or that results from their failure to comply with applicable Security Procedures), malfunction of equipment or software (except where such malfunction is primarily and directly attributable to the negligence of the Administrative Agent or its Supervised Persons), failure of or the effect of rules or operations of any external funds transfer system, inability to obtain or interruption of external communications facilities, or any cause beyond the reasonable control of the Administrative Agent.

 

	
  

	
6.3

	
The Administrative Agent May Consult with Counsel.

 

The Administrative Agent will be entitled to rely on, and may act upon the advice 

 

  

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of, professional legal counsel and accountants (who may also be advisors to the Trust or the Sponsor) in relation to matters of law, regulation or market practice, and shall not be liable to Trust under this Agreement for any action taken or omitted pursuant to such advice, provided that the Administrative Agent has acted in good faith and with reasonable care.

 

	
  

	
6.4

	
Limitations of the Administrative Agent’s Liability.

 

	
  

	
(a)

	
The Administrative Agent may rely on information provided to it by or on behalf of the Trust or the Sponsor, or which was prepared or maintained by the Trust, the Sponsor or any agent of the Trust or the Sponsor (including the Valuation Agent), in the course of discharging its duties under this Agreement. The Administrative Agent shall not be liable to any person for any Damages suffered by any person as a result of the Administrative Agent (i) having relied upon the authority, accuracy, truth or completeness of information supplied to the Administrative Agent by the Trust, the Sponsor, any agent of the Trust or the Sponsor, other than a service provider appointed by the Administrative Agent, or (ii) having relied upon the authority, accuracy, truth and completeness of information furnished to the Administrative Agent by the Valuation Agent or Warehouse-keeper, or any pricing services, data services, or provider of other market information or information concerning assets of the Trust.

 

	
  

	
(b)

	
The Administrative Agent shall not be liable for any error in data that is transitioned to the Administrative Agent at the time it begins to provide the Services with respect to the Trust, provided, however, that the Administrative Agent:

 

	
  

	
(i)

	
shall use reasonable efforts to mitigate any Damages arising as a result of any such error of which it is aware; and

 

	
  

	
(ii)

	
shall notify the Trust and the Sponsor as soon as practicable after becoming aware of any such error.

 

The Administrative Agent shall be entitled to reasonable compensation, at its customary hourly rates, for the remediation efforts needed to correct any such error in data.

 

	
  

	
(c)

	
The Administrative Agent shall not be liable for any Damages resulting from a failure by any person (other than any Supervised Person) to provide the Administrative Agent with any information or notice that is reasonably necessary for the provision of the Services; provided, however, that the Damages do not result from an act of negligence, fraud or willful misconduct on the part of any Administrative Agent Indemnitee.  The Administrative Agent shall use reasonable efforts to find alternative sources of information in the event of any such failure. In the event of any such failure that may affect the performance of the Services, the Administrative Agent shall promptly notify the Trust and the Sponsor.

 

	
  

	
(d)

	
The Administrative Agent shall not be liable for any Damages whatsoever incurred or suffered by any party hereto, whether on their own account or for the account of the Trust, as a result of the failure of 

 

  

13

  

 

the Trust or its agents, officers or employees to comply with the laws or regulations of any jurisdiction in which Shares are offered.

 

	
  

	
(e)

	
The Administrative Agent’s responsibilities with respect to any Damages incurred that arise out of an error shall be subject to the Error Reprocessing Policy as set forth herein or in the Master Terms Addendum or as agreed between the parties from time to time.

 

	
  

	
7.

	
Term and Termination

 

	
  

	
7.1

	
Term and Termination.

 

	
  

	
(a)

	
This Agreement shall become effective as of the date first above written, shall continue until five years from such date (the “Initial Term”), and shall renew automatically thereafter for successive one-year periods (each, a “Renewal Term”).

 

	
  

	
(b)

	
This Agreement may be terminated by the Sponsor or the Trust:

 

	
  

	
(i)

	
upon at least one hundred eighty (180) days’ prior written notice to the Administrative Agent as of the end of the Initial Term or any Renewal Term;

 

	
  

	
(ii)

	
upon at least ninety (90) days’ (or if impracticable, such shorter period as the Sponsor or the Trust deems reasonable) prior written notice to the Administrative Agent, during or after the dissolution, liquidation, winding up or termination of the Trust; or

 

	
  

	
(iii)

	
upon at least ninety (90) days’ prior written notice to the Administrative Agent if the Trust fails to be listed and traded successfully on the relevant exchange.

 

	
  

	
(c)

	
This Agreement may be terminated by the Administrative Agent as of the end of the Initial Term or any Renewal Term upon at least one hundred eighty (180) days’ prior written notice to the Sponsor and the Trust.

 

	
  

	
7.2

	
Other Grounds for Termination.

 

Any of the Sponsor, the Trust or the Administrative Agent may terminate this Agreement immediately upon written notice to the each other party following the occurrence of any of the following:

 

	
  

	
(a)

	
any other party being declared bankrupt, entering into a composition with creditors, obtaining a suspension of payment, being put under court controlled management or being the subject of a similar measure;

 

	
  

	
(b)

	
the withdrawal, cancellation or similar action by a federal, state or other governmental, regulatory or self-regulatory authority of any registration, authorization or license necessary for the conduct of any other party’s business; or

 

	
  

	
(c)

	
any other party committing any material breach of this Agreement and failing to remedy such breach (if capable of remedy) within 90 days of being given written notice of the material breach, unless the parties agree 

 

  

14

  

 

to extend the period to remedy the breach.

 

	
  

	
7.3

	
Consequences of Termination.

 

Any termination of this Agreement under the provisions of this Article 7 shall be without prejudice to the performance of any party’s obligations under this Agreement with respect to all outstanding transactions at the date of termination.

 

	
  

	
7.4

	
Transition following Termination.

 

As soon as reasonably practicable following its resignation or a termination of appointment becoming effective, and subject to payment of any amount owing to the Administrative Agent under this Agreement, the Administrative Agent agrees to transfer such records and related supporting documentation as are held by it under this Agreement, to any replacement provider of the Services or to such other person as the Sponsor may direct.  Except in the event of a termination pursuant to Section 7.2, the Administrative Agent shall provide the Services until a replacement administrator is in place, subject to the terms and conditions of this Agreement (including Article 4).  The Administrative Agent shall also provide reasonable assistance to its successor in connection with such transfer for a transition period, subject to the payment of such reasonable expenses and charges as the Administrative Agent customarily charges for such assistance.  The Sponsor shall undertake to use its best efforts to terminate any transition period as soon as possible, including if applicable by appointing a new service provider.

 

	
  

	
8.

	
Miscellaneous

 

	
  

	
8.1

	
Notices.

 

Notices required under this Agreement (other than Instructions) shall be sent or served by registered mail, overnight delivery services (such as Federal Express (FedEx) or United Parcel Service (UPS)), courier services or hand delivery to the address of the applicable party:

 

If to the Administrative Agent, at:

 

 

If to the Trust, at:

 

Global Commodities Group

Attention: Head of Commodity Investor Sales

383 Madison Avenue, 10th Floor

New York, NY 10179

 

JPMorgan Legal Department

Attention: Structured Products Group

277 Park Avenue, 13th Floor

New York, NY 10172-0003

 

If to the Sponsor, at:

 

Each of the foregoing addresses shall be effective unless and until notice of a new address is given by the applicable party to the other parties in writing. Notice will

 

  

15

  

 

not be deemed to be given unless it has been received.

 

	
  

	
8.2

	
Successors and Assigns.

 

This Agreement will be binding on each of the parties hereto and their respective successors and permitted assigns, but the parties agree that no party can assign its rights and obligations under this Agreement without the prior written consent of the other parties; provided that the Administrative Agent may assign this Agreement without the Trust’s or the Sponsor’s consent to (a) any Affiliate or subsidiary of the Administrative Agent or (b) in connection with a merger, reorganization, stock sale or sale of all or substantially all of the Administrative Agent’s fund servicing business.

 

 

	
  

	
8.3

	
Entire Agreement.

 

This Agreement, the Agency Agreement and the Custody Agreement set out the entire agreement among the parties with respect to the subject matter hereof and thereof, and supersede any other agreements, statements, or representations, whether oral or written.  Amendments must be in writing and signed by all parties.

 

 

	
  

	
8.4

	
Insurance.

 

The Trust and the Sponsor acknowledge that the Administrative Agent will not be required to maintain any insurance coverage specifically for the benefit of the Trust or the Sponsor.  The Administrative Agent will, however, provide summary information of its own general insurance coverage to the Trust and the Sponsor upon written request.

 

 

	
  

	
8.5

	
Governing Law and Jurisdiction.

 

This Agreement will be construed, regulated and administered under the laws of the State of New York, as applicable, without regard to New York’s principles regarding conflict of laws.

 

The parties hereby agree that any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in the United States District Court for the Southern District of New York or any New York State court sitting in New York City, so long as one of such courts shall have subject matter jurisdiction over such suit, action or proceeding, and that any case of action arising out of this Agreement shall be deemed to have arisen from a transaction of business in the State of New York, and each of the parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding which is brought in any such court has been brought in an inconvenient form.  Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court.  Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 8.1 shall be deemed effective service of process on such party.

 

  

16

  

 

	
  

	
8.6

	
Severability; Waiver; and Survival.

 

	
  

	
(a)

	
If one or more provisions of this Agreement are held invalid, illegal or unenforceable in any respect on the basis of any particular circumstances or in any jurisdiction, the validity, legality and enforceability of such provision or provisions under other circumstances or in other jurisdictions and of the remaining provisions will not in any way be affected or impaired.

 

	
  

	
(b)

	
Except as otherwise provided herein, no failure or delay on the part of any party in exercising any power or right under this Agreement operates as a waiver of such power or right, nor does any single or partial exercise of any power or right preclude any other or further exercise of such right or the exercise of any other power or right.  No waiver by a party of any provision of this Agreement, or waiver of any breach or default, is effective unless it is in writing and signed by the party or parties against whom the waiver is to be enforced.

 

	
  

	
(c)

	
Sections 2.4, 4.1, 6.1, 6.4, 7.3, 7.4, 8.5, 8.6 and 8.7 shall survive any termination of this Agreement.

 

 

	
  

	
8.7

	
Confidentiality.

 

	
  

	
(a)

	
Subject to Section 8.7(b), the Administrative Agent will hold in confidence all Confidential Information of the Sponsor and the Trust.  The Administrative Agent will not disclose any Confidential Information except (i) with the consent of the Sponsor or the Trust, (ii) as required by Applicable Law or (iii) to its or any of its Affiliates’ regulatory examiners.

 

	
  

	
(b)

	
Each of the Trust and the Sponsor hereby authorizes the Administrative Agent to disclose Confidential Information to:

 

	
  

	
(i)

	
any service provider and/or vendor to the Trust or the Sponsor, to the extent that such information is reasonably required by such person to provide the relevant services;

 

	
  

	
(ii)

	
the Administrative Agent’s professional advisors, auditors or public accountants, provided that such persons are advised of the confidential nature of the Confidential Information and agree to hold such information in confidence; and

 

	
  

	
(iii)

	
any Affiliates of the Administrative Agent.

 

	
  

	
(c)

	
Except as otherwise required by Applicable Law or as needed to enforce the terms of this Agreement, the parties shall hold the terms and conditions of this Agreement, including, without limitation, any commercial terms, in confidence.  The Administrative Agent acknowledges that the Sponsor and the Trust intend to file this Agreement as an exhibit to the Trust’s Registration Statement and agrees that such filing shall not constitute a violation of this Section 8.7.

 

	
  

	
8.8

	
Use of the Administrative Agent’s Name.

 

The Sponsor and the Trust agree not to use (or permit the use of) the name “JPMorgan Chase Bank” in reference to the Administrative Agent’s services 

 

  

17

  

 

hereunder in any sales, distribution or publicity material relating to the Trust, including but not limited to notices, marketing literature, stationery and advertisements, without the prior consent of the Administrative Agent (which consent shall not be unreasonably withheld), provided that the Administrative Agent hereby approves all lawful uses of its name in the Prospectus and in all other material that merely refer in accurate terms to the Administrative Agent’s appointment hereunder or that are required by Applicable Law.  For the avoidance of doubt, nothing in this Section 8.8 shall be deemed to limit the ability of the Sponsor and the Trust to use the terms “J.P. Morgan”, “JPMorgan” or “JPM”, any related marks, or any derivations of the foregoing, that do not relate specifically to the services provided by the Administrative Agent hereunder.

 

	
  

	
8.9

	
Delegation.

 

The Administrative Agent may delegate to any Affiliate any of the functions relating to the Services hereunder; provided that the Administrative Agent shall remain ultimately responsible for its obligations, duties and responsibilities under this Agreement and no such delegation shall relieve the Administrative Agent from any liability to the Sponsor or the Trust hereunder.  To the extent reasonably practicable, the Administrative Agent will consult with the Sponsor and the Trust before it implements the delegation of any material portion of the Services.

 

	
  

	
8.10

	
Third Party Rights.

 

A person who is not a party to this Agreement shall have no right to enforce any term of this Agreement.

 

	
  

	
8.11

	
Limitations of the Sponsor’s Liability.

 

It is expressly understood and agreed by the parties hereto that (a) this Agreement is executed and delivered on behalf of the Trust by the Sponsor, not individually or personally, but solely as Sponsor of the Trust in the exercise of the powers and authority conferred and vested in it, (b) the representations, covenants, undertakings and agreements herein made on the part of the Trust are made and intended not as personal representations, undertakings and agreements by the Sponsor but are made and intended for the purpose of binding only the Trust, (c) nothing herein contained shall be construed as creating any liability on the Sponsor, individually or personally, to perform any covenant of the Trust either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties hereto and by any person claiming by, through or under the parties hereto and (d) under no circumstances shall the Sponsor be personally liable for the payment of any indebtedness or expenses of the Trust or be liable for the breach or failure of any obligation, duty, representation, warranty or covenant made or undertaken by the Trust under this Agreement or any other related document.

 

	
  

	
8.12

	
Counterparts.

 

This Agreement may be executed in several counterparts, each of which will be deemed to be an original and which together will constitute one and the same agreement.

 

  

18

  

AS WITNESS the hand of the duly authorized officers of the parties hereto:

 

 

	
J.P. MORGAN PHYSICAL COPPER TRUST

 

By:  J.P. MORGAN COMMODITY ETF

           SERVICES LLC, as Sponsor

	
J.P. MORGAN COMMODITY ETF SERVICES LLC

	
 

By:___________________________________

Name:

Title:

Date:

	
 

By:___________________________________

Name:

Title:

Date:

	 	 
	
JPMORGAN CHASE BANK, N.A.

	  
	
 

By:___________________________________

Name:

Title:

Date:

	  

 

 

  

  

  

 

 

SCHEDULE 1

 

Master Terms Addendum

 

 

  

  

  

 

 

SCHEDULE 2

 

Accounting Services

Interpretation.

 

Capitalized terms used but not defined in this Schedule shall be defined as provided in the main body of the Agreement, in the Master Terms Addendum, or in any other schedule to this Agreement.

 

	
  

	
A.

	
Fund Accounting

 

	
  

	
1.

	
Maintenance of Accounting Records.

 

	
  

	
(a)

	
The Administrative Agent shall maintain the following records of the Trust (the “Accounting Records”) in accordance with U.S. generally accepted accounting principles:

 

	
  

	
(i)

	
journals containing an itemized daily record of all acquisitions and dispositions of assets by or on behalf of the Trust, all receipts and disbursements of cash by or on behalf of the Trust, and all other debits and credits by or on behalf of the Trust;

 

	
  

	
(ii)

	
general and auxiliary ledgers reflecting all asset, liability, reserve, capital, income and expense accounts relating to the Trust;

 

	
  

	
(iii)

	
separate ledger accounts; and

 

	
  

	
(iv)

	
a monthly trial balance of all ledger accounts (except shareholder accounts).

 

	
  

	
(b)

	
The Administrative Agent shall update the Accounting Records to reflect completed Share transactions in accordance with this Agreement and the Agency Services Agreement.

 

	
  

	
(c)

	
The Administrative Agent is not required to calculate expense caps or collars, except as may be agreed with the Trust and/or the Sponsor.

 

	
  

	
2.

	
Assistance to Auditors.

 

The Administrative Agent shall provide reasonable cooperation and assistance to the auditors of the Trust, including without limitation by providing copies of extracts of the Accounting Records and other documentation that is maintained by the Administrative Agent on behalf of the Trust as reasonably required by such auditors to carry out their functions.

 

	
  

	
B.

	
Reconciliations of Securities Positions and Cash and/or Currency Balances.

 

The Administrative Agent shall reconcile its records of assets of the Trust to the records of the Warehouse Administrator, and shall perform similar reconciliations to the relevant source with respect to other material assets or liabilities.  Such reconciliations shall be conducted at the frequency as agreed with the Trust and the Sponsor.

 

	
  

	
C.

	
Standard Reporting

 

  

  

  

 

The Administrative Agent shall make available a standard set of reports as agreed with the Trust and the Sponsor.

 

	
  

	
D.

	
Services Requiring Separate Arrangements

 

	
  

	
1.

	
Non-Standard Services and Reports.

 

Additional services and special reports are available by arrangement between or among the Trust, the Administrative Agent and the Sponsor, as applicable, under the terms and conditions of this Agreement (other than adjustments in compensation as may be agreed).  Any such non-standard services and special reports will be subject to the Change Control processes set forth in Section 2.6.

 

	
  

	
2.

	
Messaging/Communication.

 

Unless otherwise agreed in accordance with the Change Control process set forth in Section 2.6, all information delivered to the Administrative Agent (including but not limited to trade flows and reconciliation reports) shall be via the Administrative Agent’s standard means of electronic communication.

  

  

  

 

SCHEDULE 3

 

Administration Services

Interpretation.

 

Capitalized terms used but not defined in this Schedule shall be defined as provided in the main body of the Agreement, in the Master Terms Addendum, or in any other schedule to this Agreement.

 

	
  

	
A.

	
Financial Reporting Services.

 

The Administrative Agent’s financial reporting services to the Trust and the Sponsor shall include:

 

	
  

	
1.

	
Filings on Form 8-K

 

The Administrative Agent shall provide to the Trust and to the Sponsor information that the Sponsor reasonably requests in order to aid the Trust and the Sponsor in the preparation of Form 8-Ks (as may be amended from time to time by the SEC); provided, however that such information is known or would be known by and available to the Administrative Agent in the course of its duties as set forth herein or in the Master Terms Addendum.  In addition, in the course of its duties, if the Administrative Agent becomes aware of the Trust’s requirement to file an 8-K prior to being notified by the Trust or Sponsor, the Administrative Agent shall notify the Trust and Sponsor immediately, and to the extent the Administrative Agent has information relevant to such filing, the Administrative Agent shall provide the required information for such filing to the Trust and the Sponsor.

 

	
  

	
2.

	
Quarterly and Annual Reports on Forms 10-Q and 10-K.

 

The Administrative Agent shall use its best efforts to coordinate with the Sponsor and the Trust the preparation and filing of the Trust’s Form 10-K.  The Administrative Agent shall designate certain employees that are knowledgeable about the operations of the Trust to aid the Sponsor in the Sponsor’s preparation and filing of such Form 10-K. Within 15 business days following the end of each fiscal year of the Trust, the Administrative Agent shall provide to the Trust and to the Sponsor information that the Sponsor reasonably requests or that is mandated by such Form 10-K (as may be amended from time to time by the SEC) in order to aid the Trust and the Sponsor in the preparation of an Annual Report on Form 10-K for that fiscal year of the Trust; provided, however that such information is known or would be known by the Administrative Agent in the course of its duties as set forth herein or in the Master Terms Addendum.

 

The Administrative Agent shall use its best efforts to coordinate with the Sponsor and the Trust the preparation and filing of the Trust’s Form 10-Q.  The Administrative Agent shall designate certain employees that are knowledgeable about the operations of the Trust to aid the Sponsor in the Sponsor’s preparation and filing of such Form 10-Q. Within 15 business days following the end of each fiscal quarter of the Trust, the Administrative Agent shall provide to the Trust and to the Sponsor information that the Sponsor reasonably requests or that is mandated by such Form 10-Q (as may be amended from time to time by the SEC) in order to aid the Trust and the Sponsor in the preparation of a Quarterly Report on Form 10-Q for that fiscal quarter of the Trust; provided, however that such information is known or would be known by the Administrative Agent in the 

 

  

  

  

 

course of its duties as set forth herein or in the Master Terms Addendum.

 

The Administrative Agent will prepare the Trust’s Financial Statements for review by the Trust and its auditors, such preparation to include the following:

 

	
  

	
·

	
Statement of Financial Condition

 

	
  

	
·

	
Statement of Investments

 

	
  

	
·

	
Statement of Operations

 

	
  

	
·

	
Change in Net Assets

 

	
  

	
·

	
Cash Flows

 

	
  

	
·

	
Notes to Financial Statements

 

	
  

	
·

	
Review of other financial data included in 10-Qs and 10-Ks

 

In connection with the preparation of each Annual Report, the Administrative Agent shall assist with the audit of the Trust by its independent public accountant (e.g., manage open items lists, host weekly audit meeting, etc.).

 

The Administrative Agent will provide to the Trust sub-certifications for Sarbanes-Oxley attestation with respect to any Form 10-K and Form 10-Q, including any applicable executive officer certifications.

 

To the extent the Trust becomes subject to additional regulatory requirements, the Administrative Agent shall provide to the Trust and to the Sponsor information that the Sponsor reasonably requests by Change Request in order to aid the Trust and the Sponsor in addressing such regulatory requirements.

 

	
  

	
3.

	
Additional Services.

 

The following services are available by arrangement between the Trust and the Administrative Agent (and subject to additional fees): pro forma statements and - type-setting by an outside vendor.

 

	
  

	
B.

	
Regulatory Services

 

To the extent the Administrative Agent receives any regulatory inquiries relating to the Trust, the Sponsor or its services as such services relate specifically to the Trust, the Administrative Agent will provide notice and copy of such inquiry to the Sponsor and the Trust immediately upon receipt of such inquiry.

 

	
  

	
C.

	
General Administration Services

 

	
  

	
1.

	
Expense Accruals.

 

The Administrative Agent will prepare expense projections and establish accruals and review the same on a periodic basis, including expenses based on a percentage of average daily net assets (e.g., Sponsor’s Fee) and expenses based on actual charges annualized and accrued daily.

 

	
  

	
2.

	
Expense Payments.

 

The Administrative Agent shall execute an algorithm for the payment of the Trust’s expenses in accordance with the Master Terms Addendum.  In cases where the algorithm indicates that such a transfer should be made, the Administrative Agent will instruct the Warehouse Administrator to transfer Copper to the Sponsor accordingly.

 

  

  

  

 

	
  

	
3.

	
Reports.

 

The Administrative Agent will prepare and review monthly performance calculations (with the exception of benchmark performance calculations, if any) and will report Trust performance to outside statistical service providers as instructed by the Trust.

 

	
  

	
4.

	
Regulatory Examinations.

 

The Administrative Agent will provide support and coordinate communications and data collection of records and documents held by the Administrative Agent on the Trust’s behalf, with respect to routine regulatory examinations of the Trust.

 

	
  

	
5.

	
Other Services.

 

The Administrative Agent will apply for the Trust’s tax I.D. number and CUSIP number(s).

 

The Administrative Agent will provide a Gross Proceeds Report for the Trust and will include a calculation of metric tons per share and, when applicable, the per share metric tons sold and gross proceeds per share. The information contained in the report is intended to assist the Trust in providing information to its Shareholders to enable them to calculate their own individual tax consequences from their holdings.  The Gross Proceeds Report does not constitute tax advice.

 

The Administrative Agent will provide consultative services with respect to financial matters of the Trust as may be requested and agreed to among the Sponsor, the Trust and the Administrative Agent from time to time.

 

The Administrative Agent will provide financial information for the Trust’s prospectus and other regulatory filings.

 

  

  

  

 

ANNEX A

 

Electronic Access

 

 

	
1.

	
The Administrative Agent shall permit the Trust, the Sponsor and the Authorized Persons to access electronically the applications and products listed on Exhibit 1 to this Agreement (the “Products”).  The Administrative Agent reserves the right to modify this Annex A and, subject to the terms and conditions of the Agreement, the products and services available through the Products, upon notice to the Trust and the Sponsor.  The Administrative Agent shall use reasonable efforts to give the Trust and the Sponsor reasonable notice of its termination or suspension of access hereunder to any Product, but may do so immediately upon written notice to the Trust and the Sponsor if the Administrative Agent determines, in its sole discretion, that providing access to such Product would violate Applicable Law or that the security or integrity of such Product is at risk.

 

	
2.

	
In consideration of the fees paid to the Administrative Agent and subject to any applicable software license addendum in relation to software owned or sublicensed to the Administrative Agent provided for a particular application, the Administrative Agent grants to the Trust and the Sponsor, and, where applicable, the Authorized Persons, on the terms of this Annex A – a non-exclusive license to use the Products and the information and data made available to the Trust and the Sponsor through the Products (the “Data”) for the sole use of the Trust and the Sponsor.  The Trust and the Sponsor may download the Data and print out hard copies for its reference, provided that it does not remove any copyright or other notices contained therein or any hyperlink or other reference to any such notice.

 

	
3.

	
The rights and obligations of the parties with respect to the provision of certain cash products and services via the Products shall also be governed, to the extent not governed by this Agreement, by the Administrative Agent’s terms and conditions relating to such products and services, as the same may be amended from time to time (the “Product Terms”).  If and to the extent that there is a conflict between the Product Terms and this Annex A, the provisions of this Annex A shall prevail.

 

	
4.

	
The Trust and the Sponsor acknowledge that there are certain security, corruption, transaction error and access availability risks associated with using open networks such as the Internet, and the Trust and the Sponsor hereby expressly assume such risks.  The Trust and the Sponsor shall make their own independent assessment of the adequacy of the Internet and of the security procedures made available by the Administrative Agent.  The Trust and the Sponsor acknowledge and agree that the selection and use by it of third party security and communications software and third party service providers is the sole responsibility of the Trust and the Sponsor, as applicable, and the Administrative Agent disclaims all risks related thereto, notwithstanding that the Administrative Agent may recommend certain security and/or communication software packages.  All such software must be interoperable with the Administrative Agent’s software.  Each of the Trust, the Sponsor and the Administrative Agent shall be responsible for the proper functioning, maintenance and security of its own systems, services, software and other equipment.

 

	
5.

	
In cases where the Administrative Agent’s web site is unexpectedly down or otherwise unavailable, the Administrative Agent shall provide other appropriate means for the 

 

  

  

  

 

Trust, the Sponsor and the Authorized Persons to instruct the Administrative Agent or obtain reports from the Administrative Agent.  Provided that the Administrative Agent reasonably provides such other means, the Administrative Agent shall not be liable for any Damages arising out of inability to instruct or communicate using the Administrative Agent’s web site in the absence of the Administrative Agent’s gross negligence or willful misconduct.

 

	
6.

	
The Trust and the Sponsor shall use (and cause their respective Affiliates, Authorized Persons, and other agents to use) appropriate and up-to-date products that are commercially available to protect their respective systems and associated files and Data from the threat of computer viruses and other similar destructive software elements (“Viruses”) and to minimize the risk of transmission of Viruses between the parties.

 

	
7.

	
The Trust and the Sponsor shall promptly and accurately designate in writing to the Administrative Agent the geographic location of their respective users from time to time.  Each of the Trust and the Sponsor further represents and warrants to the Administrative Agent that it shall not access the service from any jurisdiction which the Administrative Agent informs such party that the service is not authorized for use due to local regulations or laws.  Prior to submitting any document which designates the persons authorized to act on its behalf, the Trust or the Sponsor, as applicable, shall obtain from each individual referred to in such document all necessary consents to enable the Administrative Agent to process the Data set out therein for the purposes of providing the Products.

 

	
8.

	
Each of the Trust and the Sponsor shall be responsible for the compliance of its Authorized Persons with the terms of this Annex A.

 

  

  

  

 

 

EXHIBIT 1 to Annex A

 

Products

 

[To be Inserted]EXHIBIT 10.4

 

 

FORM OF

AUTHORIZED PARTICIPANT WAREHOUSE AGREEMENT

 

AUTHORIZED PARTICIPANT WAREHOUSE AGREEMENT made as of [●], 2011, by and between [●] (the “Customer”), Henry Bath & Son Ltd., Henry Bath LLC, Henry Bath Singapore Pte Ltd., Henry Bath BV and Henry Bath Italia Srl (each, a “Warehouse-keeper Entity,” and collectively, the “Warehouse-keeper”) and Henry Bath and Son Ltd., in its capacity as warehouse administrator (the “Warehouse Administrator”).  Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Master Terms Addendum attached hereto (the “Addendum,” and together with this Authorized Participant Warehouse Agreement and the Exhibits and Schedules attached hereto, collectively, this “Agreement”).

 

W I T N E S S E T H :

 

WHEREAS, [the Customer] [[●] (the “Authorized Participant”)]1 has entered into an Authorized Participant Agreement by and among the [the Customer] [Authorized Participant] and the Sponsor on behalf of the Trust;

 

[WHEREAS, the Authorized Participant and the Customer have entered into a [●] Agreement dated as of [●] (the “Agency Agreement”) establishing certain terms and conditions relating to the Customer entering into this Agreement;]2

 

WHEREAS, [pursuant to the Agency Agreement,]3 the Customer hereby desires to establish a Private Account and a Reserve Account for each Permitted Warehouse Location (collectively, the “Customer Warehouse Accounts”) with the Warehouse Administrator to which will be credited Warehouse Receipts (as defined in ‎Section 2.02(a)(iii) below) representing Copper delivered by the Customer to the Warehouse-keeper Entity at each Permitted Warehouse Location; and

 

WHEREAS, the Warehouse Administrator hereby agrees to establish such Customer Warehouse Accounts for the benefit of the Customer and credit Warehouse Receipts representing Copper delivered by the Customer to the Warehouse-keeper Entity at each Permitted Warehouse Location, and the Warehouse-keeper agrees to hold and maintain the Copper so delivered and issue Warehouse Receipts representing such Copper in accordance with the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the mutual promises and undertakings herein contained, the parties agree as follows:

 

ARTICLE 1

Permitted Warehouse Locations; Establishment of Warehouse Accounts

 

Section 1.01.  Permitted Warehouse Locations. Subject to the terms of this Agreement (including, for the avoidance of doubt, the relevant Schedule applicable to a Permitted Warehouse Location), the Customer shall be permitted, at any time, to deliver Copper to the applicable Warehouse-keeper Entity at any Permitted Warehouse Location set forth on Appendix A to the Addendum (as such Appendix may be amended from time to time).

 

1 Will depend upon the nature of the parties.

2 Will depend upon the nature of the parties.

3 Will depend upon the nature of the parties.

  

  

  

 

Section 1.02.  Establishment of Warehouse Accounts.

 

(a) Private Accounts.  With respect to each Permitted Warehouse Location, the Customer hereby authorizes the Warehouse Administrator, and the Warehouse Administrator hereby agrees, (i) to establish a Private Account (as described in Section 2(c)(i) of the Addendum) to which there will be credited Warehouse Receipts representing Copper held at such Permitted Warehouse Location and (ii) to hold such Warehouse Receipts, in each case, in accordance with the terms of this Agreement.

 

(b) Reserve Accounts. With respect to each Permitted Warehouse Location, the Customer hereby authorizes the Warehouse Administrator, and the Warehouse Administrator hereby agrees, (i) to establish a Reserve Account (as described in Section 2(c)(ii) of the Addendum) to which there will be credited Warehouse Receipts representing Copper held at such Permitted Warehouse Location and (ii) to hold such Warehouse Receipts, in each case in accordance with the terms of this Agreement.

 

(c) Business of Warehouse Administrator; Warehouse Receipts Treated as Financial Assets.  The Warehouse Administrator agrees that, with respect to Warehouse Receipts (and the Copper represented thereby) that are at any time standing to the credit of any Warehouse Account, the Warehouse Administrator will (i) obtain and thereafter hold for safekeeping at its offices located at Liverpool, England one or more Warehouse Receipts (conforming to the requirements of ‎Section 2.02 of this Agreement) corresponding to the amount so credited and (ii) comply with any instruction permitted under this Agreement given to the Warehouse Administrator by the Customer directing the exercise of rights under the Warehouse Receipt or Warehouse Receipts so credited.

 

(d) Any Customer Warehouse Account established pursuant to this Agreement will be governed by Part 5 of Article 8 of the Uniform Commercial Code, as amended and in effect from time to time in the State of New York.

 

Section 1.03.  Establishment of Warehouse Accounts at Additional Permitted Warehouse Locations.  The Customer hereby authorizes the Warehouse Administrator, and the Warehouse Administrator hereby agrees, (i) to establish a Private Account and a Reserve Account with respect to each storage location that is added to the list of Permitted Warehouse Locations in accordance with Section 9(b) of the Addendum (each, an “Additional Permitted Warehouse Location”), to which such Customer Warehouse Accounts will be credited Warehouse Receipts representing Copper held at such Additional Permitted Warehouse Location and (ii) to hold such Warehouse Receipts, in each case, in accordance with the terms of this Agreement.

 

Section 1.04.  Removed Warehouse Locations. Subject to the terms of this Agreement, if, at any time, there exists one or more Warehouse Accounts to which is credited Warehouse Receipts representing Copper held at a storage location that is removed from the list of Permitted Warehouse Locations pursuant to Section 9(c)(i) of the Addendum (such storage location, a “Removed Warehouse Location”), the parties shall cooperate reasonably with each other in connection with, as applicable, (a) the physical removal by the Customer of any Copper represented by such Warehouse Receipts standing to the credit of the Customer’s Private Account in relation to such Removed Warehouse Location and (b) the reallocation by the Warehouse-keeper upon the instruction of the Administrative Agent of any Fractional Lot represented by such Warehouse Receipts standing to the credit of the Customer’s Reserve Account in relation to such Removed Warehouse Location to another Permitted Warehouse Location, in each case pursuant to Section 9(c)(iii) of the Addendum.

 

Section 1.05.  Discontinuation of Warehouse Accounts at Removed Warehouse Locations. The Customer hereby authorizes the Warehouse Administrator to, and the Warehouse Administrator shall, upon the removal from a Removed Warehouse Location of Copper in accordance with ‎Section 1.04 above 

 

  

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and Section 9(c)(iii) of the Addendum, close the Customer’s Warehouse Accounts in relation to such Removed Warehouse Location.

 

 

ARTICLE 2

Physical Storage Services

 

Section 2.01.

 

(a) Storage Services. The Customer hereby authorizes each Warehouse-keeper Entity, and each Warehouse-keeper Entity hereby agrees, to receive, store, release and deliver physical Copper in respect of the Customer’s Warehouse Accounts (such storage services provided by the Warehouse-keeper, “Storage Services”) in accordance with the terms of this Agreement. Such Storage Services shall include any services provided by the applicable Warehouse-keeper Entity to the Customer with respect to the physical delivery, deposit, storage, maintenance and withdrawal of Copper at the relevant Permitted Warehouse Location (including, but not limited to, storage, loading, unloading, haulage, stuffing, unstuffing, weighing, restrapping, rebundling, fumigation, assaying, stevedoring, palletizing, depalletising, shrink wrapping, transportation and freight forwarding and any other ancillary service related to storage of the Copper). The provision of Storage Services in each Permitted Warehouse Location shall be subject to the terms and conditions for such Permitted Warehouse Location as set forth in the relevant Schedule hereto.

 

(b) Sub-Contractors.

 

(i) The Customer hereby agrees that a Warehouse-keeper Entity may engage any warehousing sub-contractor that is eligible to act as a warehousing sub-contractor of Copper under applicable laws and regulations (each a “Sub-Contractor”), provided that any such Copper held by a Sub-Contractor shall be kept in a segregated account of such Warehouse-keeper Entity at such Sub-Contractor and such Warehouse-keeper Entity shall separately identify on its books and records such Copper that is so held on behalf of the Customer.

 

(ii) Notwithstanding the engagement of a Sub-Contractor to provide Storage Services hereunder, the relevant Warehouse-keeper Entity shall at all times be responsible for all Storage Services to be provided by such Warehouse-keeper Entity pursuant to the terms of this Agreement.

 

Section 2.02.  Deposit and Withdrawal of Physical Copper.

 

(a) General.                        

 

(i) Subject to the terms of this Agreement, on any Business Day, the Customer may (A) physically deliver Whole Lots of Copper, in accordance with ‎Section 2.02‎(b) hereof, to any Permitted Warehouse Location, such Copper to be evidenced by Warehouse Receipts to be credited to the Customer’s Private Account in relation to such Permitted Warehouse Location and (B) physically remove from any Permitted Warehouse Location Whole Lots of Copper, in accordance with ‎Section 2.02‎(d) hereof, represented by one or more Warehouse Receipts standing to the credit of the Customer’s Private Account in relation to such Permitted Warehouse Location.

 

(ii) Notwithstanding anything to the contrary in this Agreement, under no circumstances may the Customer (A) physically deliver Copper to be evidenced by Warehouse Receipts to be credited directly to a Reserve Account, (B) physically withdraw any Copper 

 

 

  

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represented by a Warehouse Receipt standing to the credit of any Reserve Account or (C) physically withdraw any Restricted Lot of Copper represented by a Warehouse Receipt standing to the credit of any Private Account.

 

(iii) Upon any physical delivery by the Customer of Copper to any Warehouse-keeper Entity at any Permitted Warehouse Location pursuant to the terms of this Agreement, (A) the relevant Warehouse-keeper Entity shall (x) record such delivery in its books and records maintained for such purpose and (y) issue to the Warehouse Administrator or its order a warehouse receipt (a “Warehouse Receipt”) representing such Copper and complying with the requirements of paragraph ‎(b)(iv) below and (B) the Warehouse Administrator shall credit the Customer’s Private Account with such Warehouse Receipt (and the Copper represented thereby).

 

(iv) Any Warehouse Receipt issued pursuant to this Agreement shall be in the form set forth in Exhibit B attached hereto.

 

(v) Upon any physical withdrawal by the Customer of Copper held at any Permitted Warehouse Location pursuant to the terms of this Agreement, (A) the relevant Warehouse-keeper Entity shall (x) record such delivery in its books and records maintained for such purpose and (y) cancel on its books and records (including its electronic system) the Warehouse Receipt representing such Copper and (B) the Warehouse Administrator shall deduct from the Customer’s applicable Warehouse Accounts the amount of Copper represented by such Warehouse Receipt(s).

 

(vi) To the extent the Customer requests a transfer of Copper represented by a Warehouse Receipt to or from the Private Account, the Warehouse Administrator may transfer such Warehouse Receipt(s) representing such Copper to or from the Trust Account or the Reserve Account, as applicable, in accordance with the instructions of the Customer or the Administrative Agent, as applicable.

 

(vii) Any Warehouse Receipt issued pursuant to this Agreement shall be a “document of title” and “warehouse receipt” governed by Article 7 of the Uniform Commercial Code, as amended and in effect from time to time in the State where the relevant Permitted Warehouse Location is located, as applicable.

 

(b) Physical Delivery to a Private Account.

 

(i) The Customer may at any time notify the applicable Warehouse-keeper Entity of its intention to physically deliver Lots of Copper to the relevant Permitted Warehouse Location pursuant to this Agreement. Any such delivery must be made, in the manner and accompanied by such documentation as the applicable Warehouse-keeper Entity may require in accordance with the relevant Schedule hereto, by the delivery of Lots of Copper to such Permitted Warehouse Location, at the Customer’s own expense.

 

(ii) Any notice from the Customer to a Warehouse-keeper Entity in connection with a proposed physical delivery of Copper shall:

 

(A) unless otherwise agreed by the Customer and such Warehouse-keeper Entity, be provided by the Customer to such Warehouse-keeper Entity no later than 5:00 p.m. local time at the applicable Permitted Warehouse Location on a regular business day of such Warehouse-keeper Entity;

 

  

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(B) specify the weight and brand of each Lot of Copper to be delivered, the name of the carrier that will deliver such Copper to the premises of the relevant Permitted Warehouse Location, or as such Warehouse-keeper Entity may otherwise direct, the manner in which such Copper will be transported and any other information such Warehouse-keeper Entity may from time to time require.

 

(iii) No Warehouse Receipt shall be issued or credited to the Customer’s Private Account in relation to any Permitted Warehouse Location unless and until the applicable Warehouse-keeper Entity has (A) physically received such Copper at such Permitted Warehouse Location, or as such Warehouse-keeper Entity may otherwise direct, and (B) taken such steps as such Warehouse-keeper Entity, in its sole discretion, shall consider appropriate to (1) verify the weight of such Copper and (2) ensure that such Copper is of an Acceptable Delivery Brand.

 

(iv) Notwithstanding anything to the contrary in this Agreement, no Warehouse-keeper Entity shall be required to accept a delivery of Copper at a particular Permitted Warehouse Location if and to the extent that, in the reasonable judgment of the such Warehouse-keeper Entity, such Permitted Warehouse Location lacks the physical space to store such Copper.

 

(c) Physical Location of Delivered Copper. Subject to ‎Section 2.01(b) hereof, Copper represented by a Warehouse Receipt standing to the credit of any Private Account shall, at all times, be physically held at the Permitted Warehouse Location relating to such Private Account (and at which such Copper was initially deposited by the Customer).

 

(d) Physical Withdrawal from a Private Account.

 

(i) No Copper represented by a Warehouse Receipt standing to the credit of any Private Account shall be released by the applicable Warehouse-keeper Entity for physical withdrawal from the relevant Permitted Warehouse Location except upon the written request of the Customer and in accordance with the terms of this Agreement.

 

(ii) Subject to ‎Section 2.02‎(a)(ii)(C) hereof, the Customer may at any time provide written notification to the applicable Warehouse-keeper Entity of its intention to physically withdraw any Lot(s) of Copper represented by a Warehouse Receipt standing to the credit of any Private Account relating to a Permitted Warehouse Location. Any such withdrawal shall be made by the Customer in the manner and accompanied by such documentation as the applicable Warehouse-keeper Entity may require in accordance with the relevant Schedule hereto, and such Warehouse-keeper Entity shall release such Copper by making such Copper available for collection by the Customer at the such Permitted Warehouse Location, or at the premises of the Sub-Contractor at which such Copper is held, at the Customer’s expense and in accordance with an appropriate withdrawal schedule to be mutually agreed upon by the Customer and such Warehouse-keeper Entity.

 

(iii) Any notice from the Customer to a Warehouse-keeper Entity in connection with a proposed withdrawal of physical Copper represented by a Warehouse Receipt shall:

 

(A) unless otherwise agreed by the Customer and such Warehouse-keeper Entity, be received by such Warehouse-keeper Entity no later than the time specified for the applicable Permitted Warehouse Location in the relevant Schedule; and

 

(B) specify the Lot(s) of Copper (by identification number) requested to be withdrawn from the Customer’s Private Account at the relevant Permitted Warehouse 

 

  

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Location, the name of the carrier that will collect such Copper from the premises of such Permitted Warehouse Location, or such other location as the Warehouse-keeper Entity may reasonably direct, and any other information such Warehouse-keeper Entity may from time to time require.

 

(e) Right to Refuse Request to Deliver or Withdraw Copper. Notwithstanding anything to the contrary in this Agreement, each Warehouse-keeper Entity hereby reserves the right to refuse to execute instructions with respect to the physical delivery or withdrawal of Copper from the relevant Permitted Warehouse Location if, in the reasonable opinion of such Warehouse-keeper Entity, such delivery or withdrawal is logistically impracticable within the requested timeframe or may be contrary to applicable law, rule or regulation.

 

Section 2.03.  Physical Segregation and Unique Identification of Copper.  Any Whole Lot or Fractional Lot of Copper represented by a Warehouse Receipt standing to the credit of any Warehouse Account at any time shall be (a) physically segregated from the general assets of the relevant Warehouse-keeper Entity and the assets of such Warehouse-keeper Entity’s other customers and (b) recorded on the books and records of such Warehouse-keeper Entity in accordance with the unique identification number of such Whole Lot or Fractional Lot.

 

 

ARTICLE 3

Allocation Services

 

Section 3.01.  Allocation Services.

 

(a) The Customer hereby authorizes the Warehouse Administrator, and the Warehouse Administrator hereby agrees, (i) to effectuate, or to cause the applicable Warehouse-keeper Entities to effectuate, Private Lot Transfers, Reserve Lot Transfers and Reserve Account Transfers, in each case represented by Warehouse Receipts, upon the instruction of the [Customer] [Authorized Participant]4 to the Warehouse Administrator, (ii) to effectuate, or to cause the applicable Warehouse-keeper Entities to effectuate, transfers of Fractional Lots represented by Warehouse Receipts between the Customer’s Reserve Account and the Sponsor’s Private Account and transfers of Whole Lots represented by Warehouse Receipts between the Customer’s Private Account and the Trust Account, in each case upon the instruction of the Administrative Agent to the Warehouse Administrator and (iii) to allocate via book-entry the applicable Warehouse Receipts evidencing such Copper between the Customer’s Reserve Account and the Trust Account at the relevant Warehouse Location upon the instruction of the Administrative Agent to the Warehouse Administrator, in each case pursuant to the terms and conditions set forth in the Addendum (such allocation services provided by the Warehouse-Administrator pursuant to clauses (i), (ii) and (iii), “Allocation Services”).

 

(b) Any instruction provided by the [Customer] [Authorized Participant]5 to initiate a Reserve Account Transfer pursuant to Section 3.01(a) above shall be provided to the Warehouse Administrator by the [Customer] [Authorized Participant] no later than 4:00 p.m. New York City time on any Business Day and the applicable Warehouse-keeper Entity shall effectuate such Reserve Account Transfer, subject to the terms hereof (including, without limitation, Section 2(c)(ii)(F) of the Addendum), prior to the Cut-Off Time on any such Business Day.

 

Section 3.02.  Reversal of Recorded Entries.  The Warehouse-keeper reserves the right, at any time, to reverse any provisional or erroneous entries with respect to the Warehouse Accounts to the date 

 

 

4 Will depend upon the nature of the parties.

5 Will depend upon the nature of the parties.

 

  

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upon which the final or correct entry (or no entry) should have been made (including, without limitation, if the Warehouse-keeper has credited any Warehouse Account with a Warehouse Receipt evidencing Copper pursuant to ‎Section 2.02(b) hereof if it is later determined that such Copper represented by such Warehouse Receipt was not of an Acceptable Delivery Brand upon delivery to a Permitted Warehouse Location).

 

Section 3.03.  Right to Refuse to Execute Allocations.  Notwithstanding anything to the contrary in this Agreement, the Warehouse Administrator reserves the right to refuse to execute Private Lot Transfers, Reserve Lot Transfers, Reserve Account Transfers, the transfers described in Section 3.01(a)(ii) or book-entry allocations between a Reserve Account and the Trust Account:

 

(i) for any period during which an emergency exists as a result of which transfer, delivery, disposal or evaluation of Copper is not commercially practicable; or

 

(ii) if, in each case, in the reasonable opinion of counsel to the Warehouse Administrator, such transfer or allocation may be contrary to applicable law, rule or regulation.

 

Section 3.04.  Ownership and Maintenance of Warehouse Accounts.  Subject to the terms of this Agreement, any Copper represented by a Warehouse Receipt held in a Warehouse Account of the Customer  shall at all times be clearly recorded by the relevant Warehouse-keeper Entity on such Warehouse-keeper Entity’s books and records as the property of the Customer.

 

 

ARTICLE 4

Representations, Warranties and Covenants

 

Section 4.01.  Representations and Warranties of the Customer.  The Customer represents and warrants to, and agrees with, the Warehouse-keeper and the Warehouse Administrator as of the date hereof as follows:

 

(a) The Customer has been duly organized and is validly existing and is in good standing under the laws of its jurisdiction of residence, with full power and authority to conduct its business, and has all requisite power and authority to execute and deliver this Agreement.

 

(b) The Customer is duly qualified and is in good standing in each jurisdiction where the conduct of its business requires such qualification.

 

(c) This Agreement has been duly authorized, executed and delivered by the Customer and constitutes the valid and binding obligations of the Customer, enforceable against the Customer in accordance with its terms.

 

Section 4.02.  Representations and Warranties of the Warehouse Administrator and Each Warehouse-keeper Entity.  The Warehouse Administrator and each Warehouse-keeper Entity represents and warrants to, and agrees with, the Customer as of the date hereof as follows:

 

(a) The Warehouse Administrator and each such Warehouse-keeper Entity has been duly organized and is validly existing and is in good standing (to the extent such concept exists in the jurisdiction applicable to such entity) under the laws of its jurisdiction of residence, with full power and authority to conduct its business, and has all requisite power and authority to execute and deliver this Agreement.

 

  

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(b) The Warehouse Administrator and each such Warehouse-keeper Entity is duly qualified and is in good standing (to the extent such concept exists in the jurisdiction or jurisdictions applicable to such entity) in each jurisdiction where the conduct of its business requires such qualification.

 

(c) This Agreement has been duly authorized, executed and delivered by each of the Warehouse Administrator and each such Warehouse-keeper Entity and constitutes the valid and binding obligations of, as applicable, each of the Warehouse Administrator and each such Warehouse-keeper Entity, enforceable against, as applicable, each of the Warehouse Administrator and each such Warehouse-keeper Entity in accordance with its terms.

 

Section 4.03.  Covenant of the Warehouse Administrator and Each Warehouse-keeper Entity.  The Warehouse Administrator and each Warehouse-keeper Entity hereby acknowledges and agrees that (a) the Addendum attached hereto shall also be a schedule to, and comprise a part of, this Agreement and (b) for the avoidance of doubt, the Warehouse Administrator and each Warehouse-keeper Entity shall perform all duties, responsibilities, obligations and services that such Addendum states are to be provided by the “Warehouse Administrator” or “Warehouse-keeper Entity”, as applicable and to the extent not otherwise provided for pursuant to Article 2 and Article 3 above.  With respect to the Allocation Services described in ‎Article 3 above, the Warehouse Administrator hereby agrees that it shall perform its duties and obligations under this Agreement in good faith and with the same or higher level of care, skill, diligence and prudence with which a commercial entity providing comparable services would seek to conduct activities for or provide services to its clients.  With respect to the Physical Storage Services described in ‎Article 2 of this Agreement, each Warehouse-keeper Entity (on behalf of itself and any Sub-Contractor engaged by that Warehouse-keeper Entity) hereby agrees that it shall perform its duties and obligations under this Agreement in good faith and with the same or higher level of care, skill, diligence and prudence with which a commercial entity providing comparable services would seek to conduct activities for or provide services to its clients.

 

 

ARTICLE 5

Fees and expenses

 

Section 5.01.

 

(a) In consideration for the Allocation Services and Storage Services provided by the Warehouse-keeper hereunder, the Customer shall pay a fee (a “Warehousing Fee”) in respect of each Warehouse-keeper Entity.  Such Warehousing Fees shall be paid by the Customer, at such rates and at such times as specified in Exhibit A, to the Warehouse Administrator, who shall distribute such Warehousing Fees to the applicable Warehouse-keeper Entity as appropriate.  Exhibit A also sets out other fees and expenses generally associated with the movement of metal to and from the Permitted Warehouse Locations (such other fees and expenses, “Delivery-Out Fees”), which shall be borne by the Customer.

 

(b) Each Warehouse-keeper Entity may from time to time in its sole discretion (i) temporarily waive all or any portion of the applicable Warehousing Fee or Delivery-Out Fees for any relevant Permitted Warehouse Location for any period of time or (ii) modify the applicable Warehousing Fee or Delivery-Out Fees in Exhibit A in accordance with amending Exhibit A pursuant to ‎Section 8.07(c) hereof.

 

  

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ARTICLE 6

Records

 

Section 6.01.  Records.  Each Warehouse-keeper Entity shall maintain journals and, as applicable, other records of original entry, containing detailed and itemized daily records of all allocations, transfers, receipts and deliveries of each Whole Lot and Fractional Lot of Copper (including relevant identification marks relating thereto) held in the Warehouse Accounts of the Customer at the relevant Permitted Warehouse Location.

 

Section 6.02.  Reports.

 

(a) On each Business Day, as soon as reasonably practicable after 6:00 p.m. New York City time, the Warehouse Administrator shall make a spreadsheet available to the Customer reflecting (i)(A) by transaction, the movement of Warehouse Receipts evidencing Copper into and out of the Warehouse Accounts in connection with any allocations, deposits, transfers or withdrawals to or from the Warehouse Accounts and (B) balance information for the Warehouse Accounts, in each case as of the prior Business Day and (ii) the following information relating to each Whole Lot and Fractional Lot of Copper represented by a Warehouse Receipt held in the Warehouse Accounts: (A) the unique identification number of such Whole Lot or Fractional Lot; (B) the Permitted Warehouse Location in which such Whole Lot or Fractional Lot is held; (C) the brand of such Whole Lot or Fractional Lot of Copper and, if such brand of Copper is no longer an Acceptable Delivery Brand, an indication that such Whole Lot or Fractional Lot consists of a brand of Copper that has been de-registered; (D) the weight in Metric Tons of such Whole Lot or Fractional Lot; and (E) the date upon which such Whole Lot or Fractional Lot was delivered to the applicable Warehouse-keeper Entity.

 

(b) Within ten (10) Business Days following the end of each calendar month, the Warehouse Administrator shall provide a written statement to the Customer, which shall include the following information: (i) a list, by Permitted Warehouse Location, of all Warehouse Receipts evidencing Copper held by the Customer in the Warehouse Accounts, including such information sufficient to identify each Whole Lot and Fractional Lot of Copper represented by such Warehouse Receipt; (ii) a list of each Warehouse-keeper Entity and Permitted Warehouse Location; and (iii) a monthly transaction report detailing all transactions over the prior monthly period with respect to the Warehouse Accounts, including daily balances and all allocations and transfers to or from each Warehouse Account.

 

(c) The Customer hereby agrees that the information made available to the Customer pursuant to ‎Section 6.02‎(a) and ‎Section 6.02‎(b) above with respect to any Reserve Account may be disclosed by the Warehouse-keeper to the Administrative Agent.  For the avoidance of doubt, each of the Warehouse Administrator and each Warehouse-keeper Entity acknowledges and agrees that, notwithstanding anything to the contrary in this Agreement, in no way shall the information made available to the Customer pursuant to ‎Section 6.02‎(a) and ‎Section 6.02‎(b) above with respect to any Private Account be disclosed by the Warehouse Administrator or any such Warehouse-keeper Entity to the Administrative Agent without the Customer’s prior written consent.

 

 

ARTICLE 7

Indemnification

 

Section 7.01.  By the Warehouse-keeper Entities. Except as otherwise provided in the applicable Schedule hereto with respect to the Storage Services provided by the relevant Warehouse-keeper Entity under this Agreement, each Warehouse-keeper Entity shall indemnify, defend and hold harmless the Customer for any loss, damage, expense, liability or claim (including reasonable attorney’s fees, costs and expenses, collectively, “Losses” or “Claims,” as the context requires) arising out of or 

 

  

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based upon such Warehouse-keeper Entity’s or its respective Sub-Contractor’s (a) gross negligence, willful misconduct or fraud in the performance of its duties under this Agreement or (b) breach of a representation made under ‎Section 4.02 of this Agreement; provided, however that in no event shall such Warehouse-keeper Entity be liable or otherwise responsible to the Customer or any other person for any incidental, consequential or punitive damages or lost profits of the Customer or such person arising out of or relating to this Agreement or the performance or breach hereof; provided, further, that any such claims or actions brought with respect to such Losses or Claims shall be brought within three (3) years of the expiration or termination of this Agreement.

 

Section 7.02.  By the Warehouse Administrator.  The Warehouse Administrator shall indemnify, defend and hold harmless the Customer for any Loss or Claim arising out of or based upon the Warehouse Administrator’s (a) gross negligence, willful misconduct or fraud in the performance of its duties under this Agreement or (b) breach of a representation under ‎Section 4.02 of this Agreement; provided, however that in no event shall the Warehouse Administrator be liable or otherwise responsible to the Customer or any person for any incidental, consequential or punitive damages or lost profits of the Customer or such person arising out of or relating to this Agreement or the performance or breach hereof; provided, further, that any such claims or actions brought with respect to such Losses or Claims shall be brought within three (3) years of the expiration or termination of this Agreement.

 

ARTICLE 8

Miscellaneous

 

Section 8.01.  Instructions.

 

(a) Whenever this Agreement provides that the Warehouse Administrator is authorized to act on the instructions, approval, consent or request (collectively, “instructions”) of the Customer [or Authorized Participant, as the case may be],6 the Warehouse Administrator is only so authorized to act (i) upon instructions in writing (including facsimile, email or other electronic transmissions) from an authorized person of the Customer [or Authorized Participant, as the case may be], or (ii) unless written instructions are explicitly required pursuant to the terms of this Agreement, upon instructions received orally from an authorized person of the Customer [or Authorized Participant, as the case may be] (as reasonably verified by the Warehouse Administrator); provided that any such oral instructions shall be promptly confirmed by such authorized person in writing.

 

(b) If, in the Warehouse Administrator’s reasonable opinion, any instructions are unclear or ambiguous, the Warehouse Administrator shall use commercially reasonable efforts (taking into account any relevant time constraints) to obtain clarification of such instructions but, failing that, the Warehouse Administrator may in its absolute discretion and without any liability on its part, either (i) act upon what it believes in good faith such instructions to be or (ii) refuse to take any action or execute such instructions until any such ambiguity or conflict has been resolved to its satisfaction.

 

Section 8.02.  Term.

 

(a) This Agreement shall become effective as of the date hereof and thereafter shall renew automatically for successive annual periods on each anniversary of the date hereof; provided, that any party may terminate this Agreement for any reason upon 180 days’ written notice to the other party.

 

(b) Notwithstanding ‎Section 8.02‎(a), if the Warehouse Administrator has provided notice to the Customer of (i) an amendment to any Schedule hereto pursuant to ‎Section 8.07(b) hereof or (ii) an 

 

6 Will depend upon the nature of the parties.

  

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amendment to Exhibit A pursuant to ‎Section 8.07(c) hereof, the Customer may terminate this Agreement on or prior to the effective date of any such amendment by providing written notice to the Warehouse-keeper at least fifteen (15) Business Days prior to the effective date of such amendment.

 

(c) Any of the Warehouse-keeper Entities or the Warehouse Administrator may terminate this Agreement by giving the Customer 30 days’ notice if any amount payable by the Customer to any of the Warehouse-keeper Entities remains unpaid for 30 days or more from the date such amount became due. Following the receipt of such notice, the Customer shall be obliged to remove the Copper from the applicable Permitted Warehouse Location at its own cost.

 

(d) Upon the expiration or termination of this Agreement:

 

(i) subject to the proviso in ‎Section 8.02‎(d)‎(ii), this Agreement shall be of no further force or effect; provided that such expiration or termination shall not affect any obligation of a party for breach of any provisions of this Agreement prior to the date of such expiration or termination; and provided, further, that ‎Article 7 and ‎Section 8.04, Section ‎8.08, ‎Section 8.09, ‎Section 8.10 and ‎Section 8.12. shall each survive the expiration or termination of this Agreement; and

 

(ii) the Customer, the Warehouse Administrator and the Warehouse-keeper Entities shall cooperate reasonably with each other in connection with the physical withdrawal of the Customer’s Copper held at any Permitted Warehouse Location pursuant to the terms of this Agreement, as follows:

 

(A)  (1) first, the Customer shall, at least five (5) Business Days prior to the effective date of expiration or termination of this Agreement, provide the Warehouse Administrator with a written request to transfer via book-entry all Warehouse Receipts representing Whole Lots of Copper, if any, held by the Customer in the Customer’s Reserve Account at the relevant Warehouse Location(s) to the Customer’s Private Account for such relevant Warehouse Location(s), (2) next, the Warehouse Administrator shall cancel the Warehouse Receipts representing such Copper in accordance with the ordinary and customary practices of the Warehouse Administrator established with respect to the Trust and (3) next, the Customer and the Warehouse-keeper shall cooperate in order to physically remove all Whole Lots of Copper held in the Customer’s Private Account at such relevant Warehouse Location(s) in accordance with ‎Section 2.02‎(d) above as soon as commercially practicable thereafter; provided that, except upon the written consent of the Customer, notwithstanding anything to the contrary in this Agreement, the Warehouse-keeper shall make such Whole Lots of Copper available for removal by the Customer no later than seven (7) Business Days from the effective date of expiration or termination of this Agreement; provided, further that, if a Warehouse-keeper Entity is unable, using reasonable efforts,  to comply with the foregoing proviso due to logistical reasons, the Customer and the applicable Warehouse-keeper Entity shall make such Whole Lots of Copper available for removal by the Customer in accordance with an appropriate withdrawal schedule to be mutually agreed upon by the Customer and such Warehouse-keeper Entity, and

 

(B)  with respect to any Fractional Lot of Copper held by the Customer at any Permitted Warehouse Location as of the effective date of expiration or termination of this Agreement, the Customer, the Warehouse Administrator and the Warehouse-keeper Entities hereby agree that, upon instruction from the Sponsor or the Administrative Agent, the Warehouse Administrator shall effect the book-entry transfer of such Divided 

 

 

  

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Lot from the Customer’s Reserve Account and the Trust Account to the Sponsor’s Private Account.  The Sponsor shall nominate a broker to assist with the sale of the Divided Lot of Copper to which such Fractional Lot pertains.  The broker shall be required to seek “best execution” for such sale, and such broker may consider, among other things, current Copper market conditions, the liquidity in the Copper market, the weight of Copper to be sold, the terms of the available bids for such Copper, and other factors relevant to such sale as such broker, in its sole discretion, considers appropriate at such time; provided that such sale shall occur no later than five (5) Business Days from the effective date of expiration or termination of this Agreement. The proceeds of such sale attributable to the Customer’s share of the Divided Lot shall be distributed by the Administrative Agent to the Customer as soon as commercially practicable after such sale;

 

provided that the provisions of this Agreement (including, as applicable, the terms and conditions of any amendment to this Agreement) shall survive with respect to any Copper remaining in any Warehouse Account after the effective date of expiration or termination of this Agreement unless and until such Copper is either removed from the relevant Warehouse Location or sold, in each case, in accordance with this clause ‎(d)‎(ii).

 

Section 8.03.  Termination of the Authorized Participant Agreement.

 

(a) The Customer shall notify the Warehouse Administrator in writing no later than ten (10) Business Days prior to the termination of the [Customer’s] [Authorized Participant’s]7 Authorized Participant Agreement.

 

(b) The Customer, the Warehouse Administrator and the Warehouse-keeper Entities agree that, upon the termination of the [Customer’s] [Authorized Participant’s]8 Authorized Participant Agreement and to the extent this Agreement remains in effect, with respect to any Fractional Lot of Copper held by the Customer at any Permitted Warehouse Location as of the effective date of termination of the Authorized Participant Agreement, upon instruction from the Sponsor or the Administrative Agent, the Warehouse Administrator shall effect the book-entry transfer of such Divided Lot from the Customer’s Reserve Account and the Trust Account to the Sponsor’s Private Account.  The Sponsor shall nominate a broker to assist with the sale of the Divided Lot of Copper to which such Fractional Lot pertains.  The broker shall be required to seek “best execution” for any such sale, and such broker may consider, among other things, current Copper market conditions, the liquidity in the Copper market, the amount of Copper to be sold, the terms of the available bids for such Copper, and other factors relevant to such sale as such broker, in its sole discretion, considers appropriate at such time; provided that such sale shall occur no later than five (5) Business Days from the effective date of termination of the Authorized Participant Agreement.  The proceeds of such sale attributable to the Authorized Participant’s (or its agent’s or nominee’s, as applicable) share of the Divided Lot shall be distributed by the Administrative Agent to the Authorized Participant (or its agent or nominee, as applicable) as soon as commercially practicable after such sale.

 

Section 8.04.  Confidential Information.

 

(a) Except as otherwise required by applicable law or as needed to enforce the terms of this Agreement, the parties shall hold the terms and conditions of this Agreement, including, without limitation, any commercial terms, in confidence.

 

 

7 Will depend upon the nature of the parties. 

8 Will depend upon the nature of the parties.

 

  

12

  

 

(b) Each party hereto accepts that from time to time any other party hereto may be required (i) by applicable law, or requested by or required in connection with filings made with a government department or agency, fiscal body or regulatory or self-regulatory authority or (ii) by the Trust, the Sponsor or the Administrative Agent, to disclose information acquired under this Agreement.  In addition, the disclosure of such information may be required by such party’s auditors, by its legal or other advisers, by a company which is in the same group of companies as such party (i.e., a subsidiary or affiliate of such party) or by a Sub-Contractor.  Subject to the agreement of the party to which information is disclosed to maintain such information in confidence, each party hereto hereby irrevocably authorizes the other parties hereto to make such disclosures without further reference to such other parties.

 

Section 8.05.  Notices.  Any notice required or permitted to be given by any party hereto to any other party hereto under this Agreement shall be in writing and shall be deemed effective on the date of personal delivery (by private messenger, courier service or otherwise) or upon confirmed receipt of facsimile, email or other electronic transmission, whichever occurs first, or upon receipt if by mail to the parties at the following address (or such other address as a party may specify by notice to the other):

 

If to the Customer, at:

 

[●]

[●]

[●]

Attention:  [●]

Telephone: [●]

Fax:  [●]

Email: [●]

 

If to a Warehouse-keeper Entity or to the Warehouse Administrator, at:

 

Henry Bath and Son Ltd.

8 Princes Dock, Princes Parade, Floor 01

Liverpool, United Kingdom

Attention:  Graham Hawkins

Telephone: [●]

Fax: [●]

Email: [●]

 

Section 8.06.  Binding Effect; Assignability.

 

(a) This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, successors, and permitted assigns.

 

(b) Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof shall be assignable by any party without the prior written consent of the other parties hereto.

 

Section 8.07.  Waiver; Amendment.

 

(a) Subject to ‎Section 8.07‎(b)-‎(d) below, no provision of this Agreement may be amended or waived unless such amendment or waiver is in writing and is signed, in the case of an amendment, by each party hereto or in the case of a waiver, by the party against whom such waiver is to be effective.

 

  

13

  

 

(b) The Warehouse-keeper may amend any Schedule hereto from time to time without the prior written consent of the Customer to the extent that such change is consistent with any change otherwise made in accordance with the Warehouse-keeper’s warehousing business.  Such amendment shall be effective upon at least thirty (30) Business Days’ prior written notice to the Customer from the Warehouse Administrator, and the effectiveness of such amendment shall not be contingent on the receipt or confirmation by the Customer.

 

(c) The Warehouse-keeper may amend Exhibit A on a quarterly basis, beginning on [●], 2011, without the prior written consent of the Customer.  Such amendment shall be effective upon at least thirty (30) Business Days’ prior written notice to the Customer from the Warehouse Administrator, and the effectiveness of such amendment shall not be contingent on the receipt or confirmation by the Customer.

 

(d) The Addendum and any Appendix thereto may be amended from time to time pursuant to Section 12 of the Addendum.

 

Section 8.08.  No Third-Party Beneficiaries.  This Agreement (and any related arrangements between the parties hereto) is solely and exclusively for the benefit of the parties, the Customer Indemnified Persons referred to in ‎Article 7 of this Agreement, and their respective successors and permitted assigns, and nothing in this Agreement (and any related arrangements between the parties hereto), express or implied, is intended to or shall confer on any other person or entity any rights, benefits or remedies of any nature whatsoever under or by reason of this Agreement (or any such related arrangements between the parties hereto).

 

Section 8.09.  Governing Law.  This Agreement (excluding, for these purposes, the Schedules hereto) shall be governed by, and construed in accordance with, the laws of the State of New York, without regard to the conflicts of laws rules of such state.  Each Schedule hereto shall be governed by, and construed in accordance with, the laws of the jurisdiction indicated in such Schedule.

 

Section 8.10.  Arbitration. 

 

(a) With respect to Storage Services (subject to any provisions relating to arbitration in the applicable Schedule which shall supersede and apply) and with respect to Allocation Services, the parties hereby agree that the exclusive forum for resolving any dispute that arises out of or in connection with this Agreement (including, for the avoidance of doubt, any Schedule hereto) shall be arbitration in accordance with the Rules of Commercial Arbitration of the American Arbitration Association, as amended by the provisions of this ‎Section 8.10. To the extent the provisions of this ‎Section 8.10 are inconsistent with the Commercial Rules of the American Arbitration Association, the provisions of this ‎Section 8.10 shall control.  Any such arbitration shall be conducted in New York City, New York before a panel of three arbitrators, one appointed by each party to the dispute and one selected by the appointed arbitrators.  If a party does not designate its arbitrator within ten (10) Business Days of a written request for arbitration being sent from one party to the other(s), any party can ask the American Arbitration Association to select such arbitrator.  Once the arbitrators have been selected, each party shall submit their position in writing to the arbitrators within thirty (30) days of the end of the discovery period as described in ‎Section 8.10‎(b).  The arbitrators shall then set a date for the arbitration hearing after which the arbitrators will render their decision by majority vote, in writing, based upon a hearing in which evidence may be introduced without following the strict rules of evidence, as specified in ‎Section 8.10‎(b), but in which cross-examination and rebuttal will be allowed.  The decision of the arbitrators will be final and binding on all parties to the arbitration and may be entered into any court in New York State with competent jurisdiction.  The arbitrators will have the power to award compensatory money damages, and interest thereon, and will have exclusive jurisdiction over all matters in dispute, but will not have the power to award exemplary or punitive damages.  The parties also agree that the expense of the arbitrators 

 

  

14

  

 

and the legal fees and expense of the prevailing party shall be borne by the losing party as determined by the arbitrators.

 

(b) In any arbitration pursuant to ‎Section 8.10‎(a), the parties shall be entitled to discovery and to introduce evidence as permitted by the arbitrators by reference to the Federal Rules of Civil Procedures and the Federal Rules of Evidence (collectively, the “Federal Rules”), but, consistent with the expedited nature of arbitration, the arbitrators shall not be required to comply strictly with such Federal Rules in conducting any such arbitration.  Each party to the arbitration will, upon the written request of any other party, promptly provide the other with copies of documents (including, without limitation, emails and other written communications) relevant to the issues.  Any dispute regarding discovery, or the relevance or scope thereof, shall be determined by the arbitrators, under the guidance of the Federal Rules, which determination shall be conclusive.  The discovery period shall be completed within thirty (30) days following the appointment of the arbitrators.

 

Section 8.11.  Counterparts; Effectiveness.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  This Agreement shall become effective when each party hereto shall have received counterparts hereof signed by all of the other parties hereto.  Until and unless each party has received a counterpart hereof signed by the other party hereto, this Agreement shall have no effect and no party shall have any right or obligation hereunder (whether by virtue of any other oral or written agreement or other communication).

 

Section 8.12.  Entire Agreement; Conflicts.  This Agreement sets out the entire agreement between the parties with respect to the subject matter hereof, and this Agreement supersedes any other agreement, statement, or representation relating to the services provided herein, whether oral or written. In the event of a conflict between the terms of this Authorized Participant Warehouse Agreement, on the one hand, and any Schedule hereto, on the other hand, the terms of Articles ‎1 through ‎8 of this Authorized Participant Warehouse Agreement shall prevail in relation to the Allocation Services and the terms of the Schedules shall prevail in relation to the Storage Services. In the event of a conflict between the terms of Articles ‎1 through ‎8 of this Authorized Participant Warehouse Agreement, the Exhibits and Schedules hereto, on the one hand, and the Addendum, on the other hand, the terms of the Addendum shall prevail.

 

Section 8.13.  Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

 

[Remainder of Page Intentionally Left Blank; Signatures Follow on Next Page]

 

 

  

15

  

  

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above.

 

 

 

 

 

 

	 	[CUSTOMER], as Customer
	 	 	 
	 	 
By:

	 
	 	
 

	  
	 	
Name:[●]

	 	
Title:  [●]

 

	 	HENRY BATH LLC, as a Warehouse-keeper Entity
	 	 	 
	 	 
By:

	 
	 	
 

	  
	 	
Name:[●]

	 	
Title:  [●]

 

 

	 	HENRY BATH & SON LTD., as a Warehouse-keeper Entity
	 	 
 

	 
	 	 
By:

	 
	 	
 

	  
	 	
Name:[●]

	 	
Title:  [●]

 

 

	 	HENRY BATH SINGAPORE PTE LTD., as a Warehouse-keeper Entity
	 	 	 
	 	 
By:

	 
	 	
 

	  
	 	
Name:[●]

	 	
Title:  [●]

 

 

  

16  

  

 

 

	 	HENRY BATH BV, as a Warehouse-keeper Entity
	 	 	 
	 	
By:

	  
	 	 	 
	 	
Name:[●]

	 	
Title:  [●]

 

	 	HENRY BATH ITALIA SRL, as a Warehouse-keeper Entity
	 	 	 
	 	
By:

	  
	 	 	 
	 	
Name:[●]

	 	
Title:  [●]

 

	 	HENRY BATH & SON LTD., in its capacity as Warehouse Administrator
	 	 	 
	 	
By:

	  
	 	 	 
	 	
Name:[●]

	 	
Title:  [●]

 

	[ACKNOWLEDGED AND AGREED:   [AUTHORIZED PARTICIPANT], in its capacity as Authorized Participant	 
	 	 	 	 
	 	 	 	 
	

By:

	
 

	  	 
	 	 	 
	 	Name:	

[●]

	 
	 	Title:	[●]]9	 

 

 

9 Will depend upon the nature of the parties.

 

  

17  

  

 

EXHIBIT A

 

 

WAREHOUSING FEES AND DELIVERY-OUT FEES

 

The Warehousing Fee charged by each Warehouse-keeper Entity shall accrue daily at the applicable rate specified at http://www.henrybath.com/227/rents-and-charges.html.

 

In each calendar month, each Warehouse-keeper Entity shall be entitled to raise an invoice for Storage Services provided in the previous calendar month.  Such invoice shall set out in reasonable detail a description of the Storage Services to which the invoice relates and shall state the Warehouse Fees payable by the Customer.

 

If this Agreement is terminated for any reason whatsoever, each Warehouse-keeper Entity shall be entitled to raise an invoice for Storage Services provided up to the date the Copper is removed from the Permitted Warehouse Location.

 

Any invoice raised hereunder shall be payable within 30 days from the date it is received by the Customer.

 

The Customer’s obligation to pay Warehouse Fees shall survive the termination of this Agreement for any reason whatsoever.

 

  

  

  

 

EXHIBIT B

FORM OF WAREHOUSE RECEIPT

 

WAREHOUSE RECEIPT NO: [●]

 

	
TO THE ORDER OF:

	
[●]

	
COMMODITY:

	
[●]

	
BRAND:

	GRADE A COPPER CATHODES
	
ORIGIN:

	
[●]

	
GROSS WEIGHT:

	
[●] MT

	
NET WEIGHT:

	
[●] MT

	
NUMBER OF BUNDLES:

	
[●] BUNDLES

	PERMITTED WAREHOUSE LOCATION: 	
[●]

	
STORAGE REFERENCE(S):

	
[●]

	
[THE MATERIAL WILL ONLY BE RELEASED ON PRESENTATION OF THIS DOCUMENT.]

	
NOT INSURED BY US, INSURANCE IS THE RESPONSIBILITY OF THE BEARER OF THIS WAREHOUSE RECEIPT.

	
WAREHOUSING FEE RATE:

	
[●]

	WAREHOUSING FEES COMMENCING: 	
[●]

	
COPPER RECEIVED WILL BE DELIVERED TO THE WAREHOUSE ADMINISTRATOR OR ITS ORDER.

	
THERE ARE NO ADVANCES MADE OR LIABILITIES INCURRED FOR WHICH THE WAREHOUSE-KEEPER CLAIMS A LIEN OR SECURITY INTEREST (OTHER THAN AS EXPRESSLY PROVIDED BY THIS AGREEMENT).

	WAREHOUSE-KEEPER ENTITY OFFICE: 	
[●]

	
WAREHOUSE ADMINISTRATOR

	 
	
OFFICE:

	
8 PRINCES DOCK, PRINCES PARADE, FLOOR 01

LIVERPOOL, UNITED KINGDOM

ATTENTION:  GRAHAM HAWKINS

TELEPHONE:

FAX:

	
DATE ISSUED: [●]

	 
	
(SIGNATURE OF ISSUER)

	 

 

 

  

  

  

Master Terms Addendum

 

 

  

  

  

Schedule A-1

 

Storage Services Terms and Conditions for Physical Copper

for the Henry Bath LLC Permitted Warehouse Locations

 

	
1.  

	
Definitions for purposes of this Schedule A-1

 

“Affiliates” means Henry Bath & Son Ltd., Henry Bath Ardiye Hizmetleri Limited Sirketi, Henry Bath Italia Srl , Henry Bath BV and Henry Bath Singapore Pte Ltd.;

 

“Agreement” means the Authorized Participant Warehouse Agreement made as of [●], 2011 by and between the Henry Bath Group and the Customer (including the Addendum and any Exhibits attached thereto), into which this Schedule A-1 is incorporated;

 

“Authority” means a duly constituted legal or administrative person acting within its legal powers and exercising jurisdiction within any nation, state, municipality, port or airport;

 

“BIMCO” means the Baltic and International Maritime Council;

 

“Company” means Henry Bath LLC, a Delaware corporation whose address is 2500 Broening Highway, Baltimore, Maryland 21224 USA;

 

“Container” means freight container (including, without limitation, any container, flexitank, trailer, transportable tank, flat, pallet or any article used to consolidate goods) which may carry unique identification numbers and markings, as well as any equipment (including devices which permit its ready handling) forming part thereof or connected thereto;

 

“Dangerous Goods” includes (a) goods defined as “Dangerous” or “Hazardous” under applicable law, (b) goods which contain a latent defect or are or may become of a dangerous, inflammable or radioactive character or damaging to itself or other property when processed or put to normal use, or goods so dangerously packed, or goods likely to harbor or encourage vermin or other pests, or goods which owing to legal, administrative or other obstacles as to their carriage, discharge or otherwise may be detained or cause any other property or person to be detained, (c) empty receptacles which were previously used for the carriage of Dangerous Goods unless such receptacles have been rendered safe, (d) Goods which are considered to be dangerous or hazardous by any Authority and (e) Goods, packing materials or transport units that have been in contact with fumigants without the required warning information clearly displayed;

 

“Goods” means the Copper in relation to which the Storage Services are provided by the Company and includes any Container, packaging or pallet supplied by or on behalf of the Customer; 

 

“Hague-Visby Rules” means the provisions of the International Convention for the unification of certain rules relating to bills of lading signed at Brussels on 25 August 1924, as amended by the Protocol made at Brussels on 23 February 1968;

 

“LME” means the London Metal Exchange or any successor; and

 

“Warehouse Contract” means the agreement between the LME and the Warehouse-keeper setting out the Warehouse-keeper’s obligations as a warehouse and under which the Warehouse-keeper agrees to abide by the SWORD Regulations (as defined in the LME Rules).

 

  

A-1

  

 

	
1.1  

	
Capitalized terms used but not defined in this Schedule A-1 shall have the meanings ascribed to such terms in the Agreement (including the Addendum).

 

	
1.2  

	
Where applicable, words importing the singular include the plural and vice versa; words importing a gender includes every gender and references to persons include bodies corporate and unincorporated.

 

	
1.3  

	
Clause headings are inserted for convenience only and shall be ignored in the interpretation of this Schedule A-1.

 

	
1.4  

	
Storage of Goods warranted under LME rules and delivery out to the last LME Warrant holder shall be governed by (i) the LME rules and regulations, including the Warehouse Contract; (ii) the terms on the front and reverse of the LME Warrant and (iii) the U.S. Standard Contract Terms and Conditions for Merchandise Warehousemen revised November 2008, as amended from time to time.

 

	
1.5  

	
All other Storage Services provided by the Company, whether gratuitously or otherwise, shall be subject to the terms of the Agreement and this Schedule A-1.

 

	
2.  

	
Owner of Goods

 

	
2.1  

	
The Customer expressly warrants that it is the owner of the Goods and further warrants that it is authorized to accept the terms of this Schedule A-1.

 

	
3.  

	
Sub-contracting, exemptions and immunities of all servants and agents of the Company

 

	
3.1  

	
Subject to Section 2.01(b) of the Agreement, the Company shall be entitled to sub-contract on any terms or rates the provision of the whole or any part of the Storage Services. For the avoidance of doubt, subject to the terms of the Agreement (including, without limitation, Section 2.01(b) and Section 4.03), every exemption, limitation, condition and liberty herein contained and every right, exemption from liability, defense and immunity of whatsoever nature shall still be available to the Company notwithstanding the Company’s sub-contracting of the whole or any part of the Storage Services.

 

	
4.  

	
Methods, Procedures, Routes and Place of Storage

 

	
4.1  

	
 Subject to express agreement with the Customer, the Company shall be entitled at its absolute discretion to decide on the means, route and procedure to be followed in providing the Storage Services, subject to the terms of the Agreement.  Notwithstanding the foregoing and without prejudice to the provisions in this Schedule A-1, the Company shall be at liberty to depart from the Customer’s instructions with respect to the means, route and procedure to be followed in providing the Storage Services if, in the reasonable opinion of the Company, it is at any stage necessary or desirable in the Customer’s interest to do so.

 

	
4.2  

	
Subject to the terms of the Agreement, the Company shall have discretion where to store Goods and, with notice to the Customer, to move the Goods from one storage facility to another; provided that such facility is in the same Permitted Warehouse Location.

 

	
5.  

	
Packing of the Goods

 

  

A-2

  

 

	
5.1  

	
Except where the Company is instructed in writing by the Customer to pack the Goods, the Customer warrants that all the Goods have been properly and sufficiently prepared, packed, stowed, labeled and/or marked and the preparation, packing, stowage, labeling and marking are appropriate to any operations or transactions affecting the Goods and in particular to withstand the ordinary risks of handling, storage and carriage.  The Company shall not be liable for any loss, damage or expenses incurred or suffered by the Customer as a result of the insufficiency of the packing of the Goods and the Customer shall indemnify the Company for any loss, damage or expenses incurred or suffered by the Company as a result of the insufficiency of the packing or labeling of the Goods.

 

	
5.2  

	
The Company shall not be liable for any loss, damage or expenses incurred or suffered by the Customer as a result of the insufficiency of the packing of the Goods and the Customer shall defend, indemnify and hold harmless the Company for any loss, damage or expenses incurred or suffered by the Company as a result of the insufficiency of the packing or labeling of the Goods.

 

	
5.3  

	
The Customer warrants that where the Company receives the Goods from the Customer already stowed in or on a Container or any other device constructed for the carriage of goods (each hereafter individually referred to as the “transport unit”), the transport unit is in good condition, and is suitable for the carriage of the Goods to the intended destination.

 

	
5.4  

	
Where the Company is instructed by the Customer to provide a Container, in the absence of any specific request in writing, the Company is not under an obligation to provide a Container of any particular type or quality.

 

	
6.  

	
Instructions and Documents to be provided to the Company with Respect to Storage Services

 

	
6.1  

	
The Customer shall ensure that all instructions, information, documents and safety data sheets required to be provided to the Company for provision of the Storage Services by the Company are accurate and adequate and are provided to the Company promptly.

 

	
6.2  

	
The Customer shall be liable for all consequences arising with respect to the Storage Services from the provision of inaccurate, obscure and inadequate instructions, information and/or documents; any failure to furnish any instructions, information and/or documents; or any failure to furnish any instructions, information and/or documents in time.

 

	
6.3  

	
Except in accordance with express instructions previously received in writing and accepted in writing by the Company, the Company shall not be obliged to make any declaration for the purposes of any statute, convention, regulation or contract as to the nature, chemical content or value of any Goods or as to any special interest in delivery.

 

	
6.4  

	
Unless otherwise previously agreed in writing, the Customer shall not deliver to the Company or cause the Company to deal with or handle Dangerous Goods.

 

	
(a)  

	
If the Customer delivers to the Company or causes the Company to deal with or handle Dangerous Goods, the Company shall not be liable for any loss or damage whatsoever caused by or to the Dangerous Goods and the Customer shall defend, indemnify and hold harmless the Company against all penalties, claims, liabilities (whether civil, criminal or otherwise), damages, costs and expenses whatsoever arising in connection with or incidental to such loss or damage, and the Dangerous Goods may without notice be destroyed or otherwise dealt with at the sole discretion of the Company or any other 

 

 

  

A-3

  

 

person in whose custody they may be at the relevant time without compensation to and at the cost of the Customer.

 

	
(b)  

	
If the Company agrees in writing to accept Dangerous Goods and subsequently, in the sole opinion of the Company, (i) they are deemed to constitute a risk to other goods, property, life or health or (ii) owing to legal, administrative or other obstacles whether as to their carriage, discharge or otherwise they may be detained or cause any other property or person to be detained, they may without notice be destroyed or otherwise dealt with at the expense of the Customer without compensation or any liability whatsoever attaching to the Company.

 

	
6.5  

	
Except insofar as has otherwise been agreed in writing, with respect to the Storage Services provided to the Customer hereunder, the Company shall be entitled and the Customer hereby authorizes the Company to enter into contracts on behalf of itself or the Customer and without notice to the Customer,

 

	
(a)  

	
for the carriage of Goods by any route, means or person;

 

	
(b)  

	
for the carriage of Goods of any description whether containerized or not on or under the deck of any vessel;

 

	
(c)  

	
for the storage, packing, transshipment, loading, unloading or handling of Goods by any person at any place whether on shore or afloat and for any length of time;

 

	
(d)  

	
for the carriage or storage of Goods in Containers or with other goods of whatever nature; or

 

	
(e)  

	
for the performance of any of its own obligations, and to do such acts as in the sole opinion of the Company may be necessary or incidental to the performance of the Company’s obligations.

 

	
6.6  

	
In respect of the Storage Services provided by the Company hereunder: (a) the Company shall be entitled but under no obligation to depart from the Customer’s instructions in any respect if in the sole opinion of the Company there is good reason to do so in the Customer’s interest to mitigate or prevent damage to property or to prevent injury to persons and (b) the Company shall not thereby incur any additional liability whatsoever, other than its liability (if any) hereunder.

 

	
6.7  

	
In respect of the Storage Services provided by the Company hereunder, the Company may at any time comply with the orders or recommendations given by any Authority.  The responsibility of the Company in respect of the Goods shall cease on the delivery or other disposition of the Goods in accordance with such orders or recommendations.

 

	
7.  

	
Accuracy of Descriptions of the Goods and Quality of the Goods

 

	
7.1  

	
The Customer warrants and is bound by the accuracy of all descriptions, values and other particulars and/or information furnished to the Company in respect of the Goods for the purposes of customs clearance or any other purposes whatsoever and the Customer shall indemnify the Company from and against any and all losses, damages, expenses and fines whatsoever arising from the inaccuracy of any descriptions, particulars and/or information furnished, even if such inaccuracy is not due (whether in whole or in part) to any negligence or fault on the part of the Customer.

 

  

A-4

  

 

	
7.2  

	
The Company shall not act as an expert in relation to the nature or quality of the Goods and, other than any reporting or notification obligations of the Company pursuant to the Agreement, shall not be required or be obliged to provide any notification to any party whatsoever in relation to the state, nature, chemical content or quality of the Goods.

 

	
7.3  

	
Nothing in this Clause 7 shall be construed to relieve the Company from any liability for the Company’s failure to identify whether any Lot of Copper delivered to the Trust is of an Acceptable Delivery Brand.

 

	
8.  

	
Tallying / Weighing / Measuring of the Goods

 

	
8.1  

	
All operations with respect to the Storage Services provided by the Company hereunder, such as superintending, sampling, taring, tallying, weighing, measuring, etc., and receiving the Goods under survey, shall be undertaken only on the specific instructions of the Customer or otherwise in accordance with the terms of the Agreement and all costs thereof and relating thereto shall be payable by the Customer and, if first paid by the Company, shall be reimbursed to the Company by the Customer forthwith upon demand.

 

	
9.  

	
Delivery / Transportation / Loading / Unloading

 

	
9.1  

	
A statement by the Customer on the time of delivery of the Goods by the Customer or its designated representatives shall not be binding on the Company and the Company shall not be taken to guarantee the arrival time of the Goods.

 

	
9.2  

	
In the event that the loading and/or unloading time under any bill of lading and/or charterparty in respect of the Goods is inadequate regardless of the cause thereof, all costs resulting therefrom, including, without limitation, any demurrage charges shall be borne by the Customer, notwithstanding that the Company was the party that accepted or entered into the bill of lading and/or charter party from which the aforesaid costs arise.

 

	
9.3  

	
If delivery of the Goods or any part thereof is not taken by the Customer at the time and place when and where the Company or any person whose services the Company makes use of calls upon the Customer to take delivery thereof, the Company shall be entitled to store the Goods or any part thereof at the sole risk of the Customer, whereupon the liability of the Company in respect of such Goods shall wholly cease and the cost of such storage and all other expenses and liability whatsoever paid or payable or incurred or which may be incurred by the Company shall be paid by the Customer on demand.

 

	
9.4  

	
The Company requires a minimum of 48 hours notice before delivery out.  In addition the Customer shall provide

 

	
(a)  

	
clear written instructions and details of the party collecting on Customer’s behalf; and

 

	
(b)  

	
full payment of all outstanding charges relating to the Storage Services up to the date of collection, whether relating to the Goods to be delivered out or otherwise.

 

	
9.5  

	
[Intentionally Omitted.]

 

	
9.6  

	
[Intentionally Omitted.]

 

  

A-5

  

 

	
9.7  

	
The Company shall be entitled to treat any form of instructions from the Customer, in respect of delivering out to or holding the Goods for another person, as:

 

	
(a)  

	
authority to accept that other person’s instructions; and

 

	
(b)  

	
confirmation that the other person has appropriate legal interest in the Goods to give instructions as to their collection.

 

	
9.8  

	
The Customer shall notify the Company of all disposals of the Goods by sale or otherwise. In the event that the Company is in any doubt as to the entitlement of any party to collect Goods, it shall be entitled to refuse or delay delivery without any liability for any costs and expenses until such doubt can be resolved to the reasonable satisfaction of the Company.

 

	
9.9  

	
Split collections may incur a supplementary charge. The maximum delivery out charge to Free on Truck (“FOT”) is notified from time-to-time by the Company to the LME and posted on the LME website. Loading into Containers or any other form of conveyance will incur additional charges. It is the responsibility of the Customer to present vehicles for loading promptly at the agreed time. Haulers are responsible for their own blocking, bracing and securing and ensuring that vehicle payload is within legal limits.

 

	
9.10  

	
The Goods are not necessarily in free circulation and may require customs clearance and payment of duty, value added tax or other state or national taxes to be arranged and paid for by the Customer before the Goods can be removed from the periphery of the warehouse premises itself with the relevant Warehouse Location.

 

	
10.  

	
Insurance

 

	
10.1  

	
The Goods are not insured by the Company against loss or damage at any time however caused.

 

	
10.2  

	
The Customer shall self insure or make arrangements to cover the Goods against all insurable risks to their full insurable value (including all duties and taxes).

 

	
10.3  

	
Any right for the insurer to bring a subrogated claim against the Company shall be excluded.

 

	
10.4  

	
In the event that the Customer requires the assistance of the Company to take out any insurance on the Goods for and on behalf of the Customer, the Company may upon the written request by the Customer and on terms to be agreed take out such insurance on the Goods against such risks as may be notified by the Customer.

 

	
10.5  

	
Where the Company utilizes derricks and/or any other such equipment for carrying out the instructions given by the Customer with respect to Storage Services, it shall be entitled to arrange insurance at the Customer’s sole expense to cover the Company’s risks arising from the use of such equipment.

 

	
11.  

	
General Indemnities in Connection with Storage Services

 

	
11.1  

	
The Customer undertakes that no claim shall be made by the Customer against any director, servant or employee of the Company which imposes or seek to impose upon them any liability in connection with any part or all of the Storage Services undertaken by the Company and if any such claim is made by the Customer, the Customer undertakes to indemnify the Company and the said director, servant or employee against all consequences thereof.

 

  

A-6

  

 

	
11.2  

	
With respect to the Storage Services provided hereunder, the Customer shall hold harmless, defend and keep the Company indemnified from and against:

 

	
(a)  

	
All liability, loss, damage, delays, costs and expenses, including without prejudice to the generality of the foregoing, all duties, taxes, imports, levies, deposits and outlays of whatsoever nature, levied by any Authority in relation to the Goods and for all payments and fines arising out of the Company acting in accordance with the Customer’s instructions with respect to the Storage Services or arising from any breach by the Customer of any warranty or obligation contained in this Schedule A-1 or from the negligence of the Customer;

 

	
(b)  

	
Without derogation from sub-clause ‎(a) above, (i) any liability assumed or incurred by the Company when by reason of carrying out the Customer’s instructions with respect to the Storage Services the Company has reasonably become liable or may become liable to any other party; and (ii) any claim from any third party arising out of or in connection with a latent defect, inherent vice or poor condition of the Goods.

 

	
(c)  

	
All claims, costs and demands whatsoever and by whomsoever made in excess of the liability of the Company under the terms of this Schedule A-1 regardless whether such claims, costs and demands arise from or in connection with the negligence or breach of duty of the Company its servants, Sub-Contractors or agents.

 

	
(d)  

	
Any advice or information, in whatever form as may be given or provided by the Company for the Customer only, and the Customer shall defend, indemnify and hold harmless the Company for all liability, loss, damage, costs and expenses arising out of any other person relying on such advice or information; provided that advice and information which are not related to instructions accepted by the Company are provided gratuitously and without liability.

 

	
(e)  

	
The Customer expressly agrees that no Sub-Contractor shall in any circumstances have any direct liability to the Customer for any loss or damage or delay of whatsoever kind arising or resulting directly or indirectly from any act, neglect or default on his part while acting in the course of or in connection with his employment or as agent of the Company or otherwise. For the avoidance of doubt, the foregoing shall not be deemed to relieve the Company from any liability it may have to the Customer under this Schedule A-1.

 

	
(f)  

	
Any demurrage or loss, damage, contamination, soiling or detention before, during or after the carriage of property (including but not limited to Containers) of the Company or any person or vessel referred to herein caused directly or indirectly by the Customer or any person acting as servants, agents or independent contractors for or on behalf of the Customer.

 

	
12.  

	
Lien

 

	
12.1  

	
All Goods and documents in the possession, custody and control of the Company or its agents or Affiliates shall be subject to a general lien and right of detention for all sums (including, without limitation, all Warehousing Fees, costs and charges payable by the Customer) due to the Company at any time and from time to time whether in respect of Storage Services provided or in respect of such Goods or other goods whether in other locations held by Affiliates or otherwise.  If the sums due as aforesaid are not satisfied within 7 days of a notice in writing by the Company 

 

  

A-7

  

 

 

to the Customer, the Company shall be entitled to sell or dispose of the Goods or documents whether by public auction, private treaty or otherwise, and the proceeds of sale shall be applied in satisfaction of firstly, the costs and expenses of the sale or disposal and secondly, the sums due to the Company (including without limitation all costs and expenses of maintaining or preserving the lien) without any liability whatsoever on the part of the Company to the Customer.  In the event that the proceeds of sale are insufficient to satisfy all sums due to the Company, the Company shall be entitled to recover from the Customer all sums which remain outstanding.  For the avoidance of doubt, the Company shall be not be required to obtain a court or tribunal order to exercise the Company’s rights or entitlements under this Clause.

 

	
13.  

	
Containers

 

	
13.1  

	
With respect to the Storage Services provided hereunder, if a Container holding Goods has not been packed or stuffed by the Company, the Company shall not be liable for loss of or damage to the contents thereof if caused by:

 

	
(a)  

	
the manner in which the Container has been packed or stuffed;

 

	
(b)  

	
the unsuitability of the contents for carriage in Containers;

 

	
(c)  

	
the unsuitability or defective condition of the Container provided that where the Container has been supplied by or on behalf of the Company, this paragraph shall apply only if the unsuitability or defective condition (i) arose without any negligence on the part of the Company or (ii) would have been apparent upon reasonable inspection by the Customer or person acting on behalf of the Customer or (iii) arose as a result of the peculiarity of the Goods and such peculiarity is not made known to the Company; or

 

	
(d)  

	
the Container not being sealed at the commencement of any carriage.

 

	
13.2  

	
The Customer shall defend, indemnify and hold harmless the Company against all liability, loss, damage, costs and expenses arising from one or more of the matters provided for in Clause ‎13.1 above.

 

	
13.3  

	
Where the Company is instructed to provide a Container, in the absence of any specific request in writing, the Company is not under an obligation to provide a Container of any particular type or quality.

 

	
14.  

	
General Liability in Connection with Storage Services

 

With respect to the Storage Services provided hereunder, and subject to ‎Section 4.03 of the Agreement:

 

	
14.1  

	
The Company shall not be liable for any loss or damage to Goods tendered, stored or handled  however caused unless such loss or damage resulted from the failure by the Company to exercise such care with regard to them as a reasonably careful person would exercise under like circumstances and the Company is not liable for damages which could not have been avoided by the exercise of such care.

 

	
14.2  

	
The Company shall not be liable for loss of Goods due to the inventory shortage or unexplained or mysterious disappearance of Goods unless the claimant establishes such loss occurred because of the Company’s failure to exercise the care required of the Company under ‎Section 4.03 of the Agreement.  Any presumption of conversion imposed by law shall not apply to such loss and a 

 

  

A-8

  

 

claim of conversion must be established by affirmative evidence that the Company converted the Goods to the Company’s own use.

 

	
14.3  

	
Company shall not be liable for any loss of profit or special, indirect or consequential damages of any kind.

 

	
14.4  

	
The Company shall not in any circumstances whatsoever and howsoever arising, including, without limitation, any negligence on the part of the Company, its servants and/or agents, be liable for loss or damage howsoever caused to property other than to the Goods themselves.

 

	
14.5  

	
Where loss or damage occurs to stored, tendered or handled Goods for which the Company is not liable, the Customer shall be responsible for the cost of removing and disposing of such Goods and the cost of any environmental clean up and site remediation resulting from the loss or injury to the Goods.

 

	
14.6  

	
If the Company negligently mis-delivers Goods, the Company shall pay the reasonable transportation charges incurred to return the mis-delivered Goods to the Warehouse Location.  If the consignee fails to return the goods, Company’s maximum liability shall be for the lost or damaged goods as specified in this clause, and the Company shall have no liability for damages due to the consignee’s acceptance or use of the Goods whether such Goods be those of the Customer or another.

 

	
15.  

	
Amount of Compensation

 

With respect to the Storage Services provided hereunder:

 

	
15.1  

	
Subject to 15.2 below, the Company’s liability hereunder shall be limited to the lower of the following (i) US$500 per Lot; or (ii) US$5,000 per Warehouse Receipt in respect of any one claim or one incident or series of related incidents.

 

	
15.2  

	
In the event of multiple claims by the Customer, the total of such claims for damages shall be further limited to US$50,000, regardless of the number of Warehouse Receipts held by the Customer.

 

	
15.3  

	
The Customer may request that the liability limits in Clauses ‎15.1 and ‎15.2 above be increased on part or all of the Goods by submitting a written request to the Company at least seven (7) days before the increased liability limits are proposed to be operative.  The Company shall determine whether to increase such liability limits in its discretion and shall determine at such time whether any additional charges are payable by the Customer based upon the limit requested and the value of the goods.

 

	
16.  

	
Notice of claim and filing of suit

 

	
16.1  

	
Claims by the Customer and all other persons with respect to the Storage Services provided hereunder must be presented in writing to the Company within a reasonable time, and in no event longer than either sixty (60) days after delivery out of the goods by the Company or sixty (60) days after the depositor of record is notified by the Company that loss or injury to part or all of the Goods has occurred, whichever time is shorter.

 

	
16.2  

	
No action may be maintained by the Customer or others against the Company for loss or damage to the Goods stored unless timely written claim has been given as provided in Clause ‎16.1 above

 

  

A-9

  

 

of this section and unless such action is commenced either within nine months after date of delivery out by the Company or within nine months after the Customer is notified that loss or injury to part or all of the Goods has occurred, whichever time is shorter.

 

	
17.  

	
Force Majeure

 

	
17.1  

	
The Company shall be relieved of its obligations with respect to the Storage Services provided hereunder, to the extent that the performance of such obligations is prevented or delayed by, or the non-performance of such obligations results wholly or partly from, the act or omission of the Customer or its agent (including any breach by the Customer of the terms or conditions in this Schedule) or by storm, flood, fire, explosion, civil disturbance, governmental or quasi-governmental action, breakdown or unavailability of premises, equipment or labor, or any other cause beyond the reasonable control of the Company.

 

	
18.  

	
Governing Law

 

	
18.1  

	
This Schedule A-1 shall be governed by and construed in accordance with the substantive laws of the state of the Warehouse Location, including Article 7 of the Uniform Commercial Code as ratified in that state, notwithstanding its conflict of laws rules.

 

	
19.  

	
Company acting as Agent of the Customer

 

	
19.1  

	
With respect to the Storage Services provided hereunder:

 

	
(a)  

	
To the extent that the Company acts as an agent of the Customer, the Company does not make or purport to make any contract with the Customer for the carriage, storage or handling of the Goods nor for any other physical service in relation to them and acts solely on behalf of the Customer in securing such services by establishing contracts with third parties so that direct contractual relationships are established between the Customer and such third parties.

 

	
(b)  

	
The Company shall not be liable for the acts or omissions of such third parties referred to in sub-clause (a) above.

 

	
(c)  

	
In respect of the Goods to be forwarded whether they are carriers by land, sea or air (whether shipowners, lightermen, canal, railway or aircraft operators or others) or warehouse keepers or other persons, the Company shall not be responsible for any accident or for any act of neglect or default howsoever arising whether willful or otherwise on the part of its agents or those with whom it contracts.  The Company shall not be responsible for any money paid or remitted by it on behalf of the senders to any persons in respect of the Goods to be forwarded, whether for the purpose of paying duties or charges in respect of the Goods or otherwise.  All general and special exemptions stated in this Clause shall apply, although the particular rates or charges made by the Company to the senders or persons forwarding the Goods may not be identical with the amounts paid by it to such agents, contractors or other persons.

 

	
19.2  

	
With respect to the Storage Services provided hereunder:

 

	
(a)  

	
Without prejudice to Clause ‎6.5, the Company, when acting as an agent of the Customer, has the authority of the Customer to enter into contracts on the Customer’s behalf and to 

 

  

A-10

  

 

do such acts so as to bind the Customer by such contracts and acts in all respects notwithstanding any departure from the Customer’s instructions.

 

	
(b)  

	
The Company shall only forward Goods subject to the contracts, terms, conditions and regulations of the various persons, companies or Authorities into whose possession the Goods may pass.

 

	
(c)  

	
The Customer shall defend, indemnify and hold harmless the Company in respect of all liability, loss, damage, costs or expenses arising out of any contracts made in the procurement of the satisfaction of the Customer’s requirements in accordance with this Clause ‎19.

 

	
20.  

	
Company acting as Principal

 

	
20.1  

	
With respect to the Storage Services provided hereunder, to the extent that the Company contracts as principal for the performance of the Customer’s instructions, the Company undertakes to perform or in its own name to procure the performance of the Customer’s instructions and subject to the provisions of this Schedule A-1 shall be liable for the loss of or damage to the Goods occurring from the time that the Goods are taken into its charge until the time of delivery.

 

	
20.2  

	
Notwithstanding any other provision in this Schedule A-1, except for the provisions in Clauses ‎15-‎16 above, if it is proven that loss of or damage to the Goods occurred, the Company’s liability shall be determined by the provisions contained in any international convention or national law, the provisions of which:

 

	
(a)  

	
cannot be departed from by private contract, to the detriment of the claimant; and

 

	
(b)  

	
would have applied if the claimant had made a separate and direct contract with the actual provider of the particular service in respect of that service or stage of carriage where the loss or damage occurred and received as evidence thereof any particular document which must be issued if such international convention or national law shall apply.

 

	
20.3  

	
Notwithstanding any provision in this Schedule A-1, but subject to Clause ‎20.4, if it can be proved that the loss of or damage to the Goods occurred at sea or inland waterway, the Company’s liability shall be limited to those set out in the Hague-Visby Rules and the Company shall be entitled to rely on all defences, exemptions or limitations provided to carriers by the Hague-Visby Rules. Reference in the Hague-Visby Rules to carriage by sea shall be deemed to include reference to carriage by inland waterways and the Hague-Visby Rules shall be construed accordingly.

 

	
20.4  

	
Notwithstanding the provisions of Clause ‎20.3, if the loss of or damage to the Goods occurred at sea or on inland waterways, and the owner, charterer or operator of the vessel establishes a limitation fund, the liability of the Company shall be limited to the proportion of the said limitation fund allocated to the Goods.

 

	
21.  

	
General Average and Both to Blame Collision

 

	
21.1  

	
The Customer shall defend, indemnify and hold harmless the Company in respect of any general average or any claims of a general average nature which may be made on the Company and the Customer shall provide such security as may be required by the Company in this connection.

 

 

  

A-11

  

 

 

	
21.2  

	
The current Both-to-Blame Collision Clause as adopted by BIMCO is incorporated in and deemed to form part of this Schedule A-1. If the vessel comes into collision with another vessel as a result of the negligence of the other vessel and any act of negligence of default of the master, marines, pilot or the servant of the carrier in the navigation or in the management of the vessel, the merchant will indemnify the carrier against all loss or liability to the other or non-carrying vessel or her owner insofar as such loss or liability represents loss of or damage to or any claim whatsoever of the owner of the said goods paid or payable by the carrying vessel or her owner as part of his claim against the carrying vessel or carrier. The foregoing provisions shall also apply where the owner operator or those in charge of any vessels or objects other than or in addition to the colliding vessels or objects are at fault in respect of a collision or contract.

 

	
22.  

	
Miscellaneous

 

	
22.1  

	
The waiver by the Company of a breach or default of any of the provisions set out in this Schedule A-1 shall not be construed as a waiver of any succeeding breach of the same or other provisions herein nor shall any delay or omission on the part of the Company to exercise or avail itself of any right power or privilege that it has or may have hereunder operate as a waiver of any breach or default by the Customer.

 

	
22.2  

	
The rights and remedies conferred on the Company under this Schedule A-1 shall be cumulative and shall be in addition to and without prejudice to any rights or remedies otherwise available (whether at law or in equity) to the Company.

 

	
22.3  

	
The defenses and limits of liability provided for by this Schedule A-1 shall apply in any action against the Company whether such action be founded in contract or tort or in whatsoever form.

 

	
22.4  

	
If any Clause or sub-clause of any part of this Schedule A-1 is construed or held to be void, unlawful, invalid or unenforceable by order, decree or judgment of any court of competent jurisdiction the remaining provisions of these Conditions shall not be affected thereby but shall remain in full force and effect.

 

	
22.5  

	
Warehousing Fees shall begin to accrue upon delivery of the Goods to the Company in accordance with the terms hereof and shall be paid in full. The Customer shall not be entitled to assert any credit set-off or counterclaim against the Company in order to justify withholding payment of any such Warehousing Fees in whole or in part.

 

 

  

A-12

  

 

 

Schedule B-1

 

Storage Services Terms and Conditions for Physical Copper

for the Henry Bath BV Permitted Warehouse Locations

 

	
1.  

	
Definitions for purposes of this Schedule B-1

 

“Affiliates” means Henry Bath & Son Ltd., Henry Bath LLC, Henry Bath Ardiye Hizmetleri Limited Sirketi, Henry Bath Italia Srl and Henry Bath Singapore Pte Ltd.;

 

“Agreement” means the Authorized Participant Warehouse Agreement made as of [●], 2011 by and between the Henry Bath Group and the Customer (including the Addendum and any Exhibits attached thereto), into which this Schedule B-1 is incorporated;

 

“Authority” means a duly constituted legal or administrative person acting within its legal powers and exercising jurisdiction within any nation, state, municipality, port or airport;

 

“BIMCO” means the Baltic and International Maritime Council;

 

 “Company” means Henry Bath BV registered at 3197 KV, Rotterdam, Nieuwesluisweg 100 (trade register no: 2430274);

 

“Container” means freight container (including, without limitation, any container, flexitank, trailer, transportable tank, flat, pallet or any article used to consolidate goods) which may carry unique identification numbers and markings, as well as any equipment (including devices which permit its ready handling) forming part thereof or connected thereto;

 

“Dangerous Goods” includes: (a) goods defined as “Dangerous” or “Hazardous” under applicable law (b) goods which contain a latent defect or are or may become of a dangerous, inflammable or radio-active character or damaging to itself or other property when processed or put to normal use, or goods so dangerously packed, or goods likely to harbor or encourage vermin or other pests, or goods which owing to legal, administrative or other obstacles as to their carriage, discharge or otherwise may be detained or cause any other property or person to be detained, (c) empty receptacles which were previously used for the carriage of Dangerous Goods unless such receptacles have been rendered safe, (d) Goods which are considered to be dangerous or hazardous by any Authority and (e) Goods, packing materials or transport units that have been in contact with fumigants without the required warning information clearly displayed;

 

“Exchange” refers to any or all of the LME, Euronext LIFFE or the International Commodities Exchange (ICE) as relevant to the Goods;

 

“Goods” means the Copper in relation to which the Storage Services are provided by the Company and includes any Container, packaging or pallet supplied by or on behalf of the Customer;

 

“Hague-Visby Rules” means the provisions of the International Convention for the unification of certain rules relating to bills of lading signed at Brussels on 25 August 1924, as amended by the Protocol made at Brussels on 23 February 1968;

 

“LME” means the London Metal Exchange or any successor;

 

  

B-1

  

 

 

“Warehouse Contract” means the agreement between the LME and the Warehouse-keeper setting out the Warehouse-keeper’s obligations as a warehouse and under which the Warehouse-keeper agrees to abide by the SWORD Regulations (as defined in the LME Rules); and

 

“REACH” means regulation (EC)1907/2006.

 

	
1.1  

	
Capitalized terms used but not defined in this Schedule B-1 shall have the meanings ascribed to such terms in the Agreement (including the Addendum).

 

	
1.2  

	
Where applicable, words importing the singular include the plural and vice versa; words importing a gender includes every gender and references to persons include bodies corporate and unincorporated.

 

	
1.3  

	
Clause headings are inserted for convenience only and shall be ignored in the interpretation of this Schedule B-1.

 

	
1.4  

	
Storage of Goods warranted under Exchange rules and delivery out to the last Exchange Warrant holder, shall be governed by (i) the relevant Exchange rules and regulations including the Warehouse Contract, (ii) the terms on the front and reverse of the Warrant and (iii) EITHER (a) for Goods stored in the Netherlands the Dutch Warehousing Conditions deposited by the FENEX as amended from time to time OR (b) for Goods stored in Belgium the KVGB General Conditions for the handling of Goods and related activities in the port of Antwerp as amended from time to time.

 

	
1.5  

	
All other Storage Services provided by the Company, whether gratuitously or otherwise, shall be subject to the terms of the Agreement and this Schedule B-1.

 

	
2.  

	
Owner of Goods

 

	
2.1  

	
The Customer expressly warrants that it is the owner of the Goods and further warrants that it is authorized to accept the terms of this Schedule B-1.

 

	
3.  

	
Sub-contracting, exemptions and immunities of all servants and agents of the Company

 

	
3.1  

	
Subject to Section 2.01(b) of the Agreement, the Company shall be entitled to sub-contract on any terms or rates the provision of the whole or any part of the Storage Services. For the avoidance of doubt, subject to the terms of the Agreement (including, without limitation, Section 2.01(b) and Section 4.03), every exemption, limitation, condition and liberty herein contained and every right, exemption from liability, defense and immunity of whatsoever nature shall still be available to the Company notwithstanding the Company’s sub-contracting of the whole or any part of the Storage Services.

 

	
4.  

	
Methods, Procedures, Routes and Place of Storage

 

	
4.1  

	
Subject to express agreement with the Customer, the Company shall be entitled at its absolute discretion to decide on the means, route and procedure to be followed in providing the Storage Services, subject to the terms of the Agreement.  Notwithstanding the foregoing and without prejudice to the provisions in this Schedule B-1, the Company shall be at liberty to depart from the Customer’s instructions with respect to the means, route and procedure to be followed in providing the Storage Services if, in the reasonable opinion of the Company, it is at any stage necessary or desirable in the Customer’s interest to do so.

 

  

B-2

  

 

	
4.2  

	
Subject to the terms of the Agreement, the Company shall have discretion where to store Goods and, with notice to the Customer, to move the Goods from one storage facility to another; provided that such facility is in the same Permitted Warehouse Location.

 

	
5.  

	
Packing of the Goods

 

	
5.1  

	
Except where the Company is instructed in writing by the Customer to pack the Goods, the Customer warrants that all the Goods have been properly and sufficiently prepared, packed, stowed, labeled and/or marked and the preparation, packing, stowage, labeling and marking are appropriate to any operations or transactions affecting the Goods and in particular to withstand the ordinary risks of handling, storage and carriage.  The Company shall not be liable for any loss, damage or expenses incurred or suffered by the Customer as a result of the insufficiency of the packing of the Goods and the Customer shall indemnify the Company for any loss, damage or expenses incurred or suffered by the Company as a result of the insufficiency of the packing or labeling of the Goods.

 

	
5.2  

	
The Customer warrants that where the Company receives the Goods from the Customer already stowed in or on a Container or any other device constructed for the carriage of goods (each hereafter individually referred to as the “transport unit”), the transport unit is in good condition, and is suitable for the carriage of the Goods to the intended destination.

 

	
5.3  

	
Where the Company is instructed by the Customer to provide a Container, in the absence of any specific request in writing, the Company is not under an obligation to provide a Container of any particular type or quality.

 

	
6.  

	
Instructions and Documents to be provided to the Company with Respect to Storage Services

 

	
6.1  

	
The Customer shall ensure that all instructions, information, documents and safety data sheets required to be provided to the Company for provision of the Storage Services by the Company are accurate and adequate and are provided to the Company promptly.

 

	
6.2  

	
The Customer shall be liable for all consequences arising with respect to the Storage Services from the provision of inaccurate, obscure and inadequate instructions, information and/or documents; any failure to furnish any instructions, information and/or documents; or any failure to furnish any instructions, information and/or documents in time.

 

	
6.3  

	
Except in accordance with express instructions previously received in writing and accepted in writing by the Company, the Company shall not be obliged to make any declaration for the purposes of any statute, convention, regulation or contract as to the nature, chemical content or value of any Goods or as to any special interest in delivery.

 

	
6.4  

	
Unless otherwise previously agreed in writing, the Customer shall not deliver to the Company or cause the Company to deal with or handle Dangerous Goods.

 

	
(a)  

	
If the Customer delivers to the Company or causes the Company to deal with or handle Dangerous Goods, the Company shall not be liable for any loss or damage whatsoever caused by or to the Dangerous Goods and the Customer shall defend, indemnify and hold harmless the Company against all penalties, claims, liabilities (whether civil, criminal or otherwise), damages, costs and expenses whatsoever arising in connection with or 

 

  

B-3

  

 

 

incidental to such loss or damage, and the Dangerous Goods may without notice be destroyed or otherwise dealt with at the sole discretion of the Company or any other person in whose custody they may be at the relevant time without compensation to and at the cost of the Customer.

 

	
(b)  

	
If the Company agrees in writing to accept Dangerous Goods and subsequently, in the sole opinion of the Company, (i) they are deemed to constitute a risk to other goods, property, life or health or (ii) owing to legal, administrative or other obstacles whether as to their carriage, discharge or otherwise they may be detained or cause any other property or person to be detained, they may without notice be destroyed or otherwise dealt with at the expense of the Customer without compensation or any liability whatsoever attaching to the Company.

 

	
6.5  

	
Except insofar as has otherwise been agreed in writing, with respect to the Storage Services provided to the Customer hereunder, the Company shall be entitled and the Customer hereby authorizes the Company to enter into contracts on behalf of itself or the Customer and without notice to the Customer,

 

	
(a)  

	
for the carriage of Goods by any route, means or person;

 

	
(b)  

	
for the carriage of Goods of any description whether containerized or not on or under the deck of any vessel;

 

	
(c)  

	
for the storage, packing, transshipment, loading, unloading or handling of Goods by any person at any place whether on shore or afloat and for any length of time;

 

	
(d)  

	
for the carriage or storage of Goods in Containers or with other goods of whatever nature; or

 

	
(e)  

	
for the performance of any of its own obligations,

 

and to do such acts as in the sole opinion of the Company may be necessary or incidental to the performance of the Company’s obligations.

 

	
6.6  

	
In respect of the Storage Services provided by the Company hereunder: (a) the Company shall be entitled but under no obligation to depart from the Customer’s instructions in any respect if in the sole opinion of the Company there is good reason to do so in the Customer’s interest to mitigate or prevent damage to property or to prevent injury to persons and (b) the Company shall not thereby incur any additional liability whatsoever, other than its liability (if any) hereunder.

 

	
6.7  

	
In respect of the Storage Services provided by the Company hereunder, the Company may at any time comply with the orders or recommendations given by any Authority.  The responsibility of the Company in respect of the Goods shall cease on the delivery or other disposition of the Goods in accordance with such orders or recommendations.

 

	
7.  

	
Accuracy of Descriptions of the Goods and Quality of the Goods

 

	
7.1  

	
The Customer warrants and is bound by the accuracy of all descriptions, values and other particulars and/or information furnished to the Company in respect of the Goods for the purposes of customs clearance or any other purposes whatsoever and the Customer shall 

 

  

B-4

  

 

indemnify the Company from and against any and all losses, damages, expenses and fines whatsoever arising from the inaccuracy of any descriptions, particulars and/or information furnished, even if such inaccuracy is not due (whether in whole or in part) to any negligence or fault on the part of the Customer.

 

	
7.2  

	
The Company shall not act as an expert in relation to the nature or quality of the Goods and, other than any reporting or notification obligations of the Company pursuant to the Agreement, shall not be required or be obliged to provide any notification to any party whatsoever in relation to the state, nature, chemical content or quality of the Goods.

 

	
7.3  

	
Nothing in this Clause 7 shall be construed to relieve the Company from any liability for the Company’s failure to identify whether any Lot of Copper delivered to the Trust is of an Acceptable Delivery Brand.

 

	
8.  

	
Tallying / Weighing / Measuring of the Goods

 

	
8.1  

	
All operations with respect to the Storage Services provided by the Company hereunder, such as superintending, sampling, taring, tallying, weighing, measuring, etc., and receiving the Goods under survey, shall be undertaken only on the specific instructions of the Customer or otherwise in accordance with the terms of the Agreement and all costs thereof and relating thereto shall be payable by the Customer and, if first paid by the Company, shall be reimbursed to the Company by the Customer forthwith upon demand.

 

	
9.  

	
Delivery / Transportation / Loading / Unloading

 

	
9.1  

	
A statement by the Customer on the time of delivery of the Goods by the Customer or its designated representatives shall not be binding on the Company and the Company shall not be taken to guarantee the arrival time of the Goods.

 

	
9.2  

	
In the event that the loading and/or unloading time under any bill of lading and/or charterparty in respect of the Goods is inadequate regardless of the cause thereof, all costs resulting therefrom, including, without limitation, any demurrage charges shall be borne by the Customer, notwithstanding that the Company was the party that accepted or entered into the bill of lading and/or charter party from which the aforesaid costs arise.

 

	
9.3  

	
If delivery of the Goods or any part thereof is not taken by the Customer at the time and place when and where the Company or any person whose services the Company makes use of calls upon the Customer to take delivery thereof, the Company shall be entitled to store the Goods or any part thereof at the sole risk of the Customer, whereupon the liability of the Company in respect of such Goods shall wholly cease and the cost of such storage and all other expenses and liability whatsoever paid or payable or incurred or which may be incurred by the Company shall be paid by the Customer on demand.

 

	
9.4  

	
The Company requires a minimum of 48 hours notice before delivery out.  Delivery out shall take place during normal working hours.  In addition the Customer shall provide

 

	
(a)  

	
clear written instructions and details of the party collecting on Customer’s behalf; and

 

	
(b)  

	
full payment of all outstanding charges relating to the Storage Services up to the date of collection, whether relating to the Goods to be delivered out or otherwise.

 

  

B-5

  

 

	
9.5  

	
[Intentionally Omitted.]

 

	
9.6  

	
[Intentionally Omitted.]

 

	
9.7  

	
The Company shall be entitled to treat any form of instructions from the Customer, in respect of delivering out to or holding the Goods for another person, as:

 

	
(a)  

	
authority to accept that other person’s instructions; and

 

	
(b)  

	
confirmation that the other person has appropriate legal interest in the Goods to give instructions as to their collection.

 

	
9.8  

	
The Customer shall notify the Company of all disposals of the Goods by sale or otherwise.  In the event that the Company is in any doubt as to the entitlement of any party to collect Goods, it shall be entitled to refuse or delay delivery without any liability for any costs and expenses until such doubt can be resolved to the reasonable satisfaction of the Company.

 

	
9.9  

	
Split collections may incur a supplementary charge. The maximum delivery out charge to Free on Truck (“FOT”) is notified from time-to-time by the Company to the LME and posted on the LME website. Loading into Containers or any other form of conveyance will incur additional charges. It is the responsibility of the Customer to present vehicles for loading promptly at the agreed time. Haulers are responsible for their own blocking, bracing and securing and ensuring that vehicle payload is within legal limits.

 

	
9.10  

	
The Goods are not necessarily in free circulation.  Any declaration or registration of the substance that is required under REACH together with any customs clearance and payment of duty, value added tax or other state or national taxes must be arranged and paid for by the Customer before the Goods can be removed from the periphery of the warehouse premises itself with the relevant Warehouse Location.

 

	
10.  

	
Insurance

 

	
10.1  

	
Except as otherwise agreed in writing, the Company does not insure the Goods and the Customer shall self insure or make arrangements to cover the Goods against all insurable risks to their full insurable value (including all duties and taxes).

 

	
10.2  

	
Any right for the insurer to bring a subrogated claim against the Company shall be excluded.

 

	
10.3  

	
In the event that the Customer requires the assistance of the Company to take out any insurance on the Goods for and on behalf of the Customer, the Company may upon the written request by the Customer and on terms to be agreed take out such insurance on the Goods against such risks as may be notified by the Customer.

 

	
10.4  

	
Where the Company utilizes derricks and/or any other such equipment for carrying out the instructions given by the Customer with respect to Storage Services, it shall be entitled to arrange insurance at the Customer’s sole expense to cover the Company’s risks arising from the use of such equipment.

 

	
11.  

	
General Indemnities in Connection with Storage Services

 

  

B-6

  

 

	
11.1  

	
The Customer undertakes that no claim shall be made by the Customer against any director, servant or employee of the Company which imposes or seek to impose upon them any liability in connection with any part or all of the Storage Services undertaken by the Company and if any such claim is made by the Customer, the Customer undertakes to indemnify the Company and the said director, servant or employee against all consequences thereof.

 

	
11.2  

	
With respect to the Storage Services provided hereunder, the Customer shall hold harmless, defend and keep the Company indemnified from and against:

 

	
(a)  

	
All liability, loss, damage, delays, costs and expenses, including without prejudice to the generality of the foregoing, all duties, taxes, imports, levies, deposits and outlays of whatsoever nature, levied by any Authority in relation to the Goods and for all payments and fines arising out of the Company acting in accordance with the Customer’s instructions with respect to the Storage Services or arising from any breach by the Customer of any warranty or obligation contained in this Schedule B-1 or from the negligence of the Customer;

 

	
(b)  

	
Without derogation from sub-clause ‎(a) above,

 

	
(i)  

	
any liability assumed or incurred by the Company when by reason of carrying out the Customer’s instructions with respect to the Storage Services the Company has reasonably become liable or may become liable to any other party;

 

	
(ii)  

	
any claim from any third party arising out of or in connection with a latent defect, inherent vice or poor condition of the Goods; and

 

	
(iii)  

	
 any delay, cost, fine or extra expenditure suffered in connection with REACH.

 

	
(c)  

	
All claims, costs and demands whatsoever and by whomsoever made in excess of the liability of the Company under the terms of this Schedule B-1 regardless whether such claims, costs and demands arise from or in connection with the negligence or breach of duty of the Company its servants, Sub-Contractors or agents.

 

	
(d)  

	
Any advice or information, in whatever form as may be given or provided by the Company for the Customer only, and the Customer shall defend, indemnify and hold harmless the Company for all liability, loss, damage, costs and expenses arising out of any other person relying on such advice or information; provided that advice and information which are not related to instructions accepted by the Company are provided gratuitously and without liability.

 

	
(e)  

	
The Customer expressly agrees that no Sub-Contractor shall in any circumstances have any direct liability to the Customer for any loss or damage or delay of whatsoever kind arising or resulting directly or indirectly from any act, neglect or default on his part while acting in the course of or in connection with his employment or as agent of the Company or otherwise. For the avoidance of doubt, the foregoing shall not be deemed to relieve the Company from any liability it may have to the Customer under this Schedule B-1.

 

	
(f)  

	
Any demurrage or loss, damage, contamination, soiling or detention before, during or after the carriage of property (including but not limited to Containers) of the Company or any person or vessel referred to herein caused directly or indirectly by the Customer or 

 

  

B-7

  

 

any person acting as servants, agents or independent contractors for or on behalf of the Customer.

 

	
12.  

	
Lien

 

	
12.1  

	
All Goods and documents in the possession, custody and control of the Company or its agents or Affiliates shall be subject to a general lien and right of detention for all sums (including, without limitation, all Warehousing Fees, costs and charges payable by the Customer) due to the Company at any time and from time to time whether in respect of Storage Services provided or in respect of such Goods.  If the sums due as aforesaid are not satisfied within 7 days of a notice in writing by the Company to the Customer, the Company shall be entitled to sell or dispose of the Goods or documents whether by public auction, private treaty or otherwise, and the proceeds of sale shall be applied in satisfaction of firstly, the costs and expenses of the sale or disposal and secondly, the sums due to the Company (including without limitation all costs and expenses of maintaining or preserving the lien) without any liability whatsoever on the part of the Company to the Customer.  In the event that the proceeds of sale are insufficient to satisfy all sums due to the Company, the Company shall be entitled to recover from the Customer all sums which remain outstanding.  For the avoidance of doubt, the Company shall be not be required to obtain a court or tribunal order to exercise the Company’s rights or entitlements under this Clause.

 

	
13.  

	
Containers

 

	
13.1  

	
With respect to the Storage Services provided hereunder, if a Container holding Goods has not been packed or stuffed by the Company, the Company shall not be liable for loss of or damage to the contents thereof if caused by:

 

	
(a)  

	
the manner in which the Container has been packed or stuffed;

 

	
(b)  

	
the unsuitability of the contents for carriage in Containers;

 

	
(c)  

	
the unsuitability or defective condition of the Container provided that where the Container has been supplied by or on behalf of the Company, this paragraph shall apply only if the unsuitability or defective condition (i) arose without any negligence on the part of the Company or (ii) would have been apparent upon reasonable inspection by the Customer or person acting on behalf of the Customer or (iii) arose as a result of the peculiarity of the Goods and such peculiarity is not made known to the Company; or

 

	
(d)  

	
the Container not being sealed at the commencement of any carriage;

 

	
13.2  

	
The Customer shall defend, indemnify and hold harmless the Company against all liability, loss, damage, costs and expenses arising from one or more of the matters provided for in Clause ‎13.1 above.

 

	
13.3  

	
Where the Company is instructed to provide a Container, in the absence of any specific request in writing, the Company is not under an obligation to provide a Container of any particular type or quality.

 

	
14.  

	
Company acting as Agent of the Customer

 

	
14.1  

	
With respect to the Storage Services provided hereunder:

 

  

B-8

  

 

	
  

	
(a)   

	
To the extent that the Company acts as an agent of the Customer, the Company does not make or purport to make any contract with the Customer for the carriage, storage or handling of the Goods nor for any other physical service in relation to them and acts solely on behalf of the Customer in securing such services by establishing contracts with third parties so that direct contractual relationships are established between the Customer and such third parties.

 

	
(b)  

	
The Company shall not be liable for the acts or omissions of such third parties referred to in sub-clause ‎(a) above.

 

	
(c)  

	
In respect of the Goods to be forwarded whether they are carriers by land, sea or air (whether shipowners, lightermen, canal, railway or aircraft operators or others) or warehouse keepers or other persons, the Company shall not be responsible for any accident or for any act of neglect or default howsoever arising whether willful or otherwise on the part of its agents or those with whom it contracts.  The Company shall not be responsible for any money paid or remitted by it on behalf of the senders to any persons in respect of the Goods to be forwarded, whether for the purpose of paying duties or charges in respect of the Goods or otherwise.  All general and special exemptions stated in this Clause shall apply, although the particular rates or charges made by the Company to the senders or persons forwarding the Goods may not be identical with the amounts paid by it to such agents, contractors or other persons.

 

	
14.2  

	
With respect to the Storage Services provided hereunder:

 

	
(a)  

	
Without prejudice to Clause ‎6.5, the Company, when acting as an agent of the Customer, has the authority of the Customer to enter into contracts on the Customer’s behalf and to do such acts so as to bind the Customer by such contracts and acts in all respects notwithstanding any departure from the Customer’s instructions.

 

	
(b)  

	
The Company shall only forward Goods subject to the contracts, terms, conditions and regulations of the various persons, companies or Authorities into whose possession the Goods may pass.

 

	
(c)  

	
The Customer shall defend, indemnify and hold harmless the Company in respect of all liability, loss, damage, costs or expenses arising out of any contracts made in the procurement of the satisfaction of the Customer’s requirements in accordance with this Clause ‎14.

 

	
15.  

	
Company acting as Principal

 

	
15.1  

	
With respect to the Storage Services provided hereunder, to the extent that the Company contracts as principal for the performance of the Customer’s instructions, the Company undertakes to perform or in its own name to procure the performance of the Customer’s instructions and subject to the provisions of this Schedule B-1 shall be liable for the loss of or damage to the Goods occurring from the time that the Goods are taken into its charge until the time of delivery.

 

	
15.2  

	
Notwithstanding any other provision in this Schedule B-1, except for the provisions in Clause ‎19, ‎20, ‎23 and ‎24, if it is proven that loss of or damage to the Goods occurred, the Company’s 

 

  

B-9

  

 

liability shall be determined by the provisions contained in any international convention or national law, the provisions of which:

 

	
(a)  

	
cannot be departed from by private contract, to the detriment of the claimant; and

 

	
(b)  

	
would have applied if the claimant had made a separate and direct contract with the actual provider of the particular service in respect of that service or stage of carriage where the loss or damage occurred and received as evidence thereof any particular document which must be issued if such international convention or national law shall apply.

 

	
15.3  

	
Notwithstanding any provision in this Schedule B-1, but subject to Clauses ‎15.2 and ‎15.4, if it can be proved that the loss of or damage to the Goods occurred at sea or inland waterway, the Company’s liability shall be limited to those set out in the Hague-Visby Rules and the Company shall be entitled to rely on all defenses, exemptions or limitations provided to carriers by the Hague-Visby Rules.  Reference in the Hague-Visby Rules to carriage by sea shall be deemed to include reference to carriage by inland waterways and the Hague-Visby Rules shall be construed accordingly.

 

	
15.4  

	
Notwithstanding the provisions of Clause ‎15.3, if the loss of or damage to the Goods occurred at sea or on inland waterways, and the owner, charterer or operator of the vessel establishes a limitation fund, the liability of the Company shall be limited to the proportion of the said limitation fund allocated to the Goods.

 

	
16.  

	
General Average and Both to Blame Collision

 

	
16.1  

	
The Customer shall defend, indemnify and hold harmless the Company in respect of any general average or any claims of a general average nature which may be made on the Company and the Customer shall provide such security as may be required by the Company in this connection.

 

	
16.2  

	
The current Both-to-Blame Collision Clause as adopted by BIMCO is incorporated in and deemed to form part of this Schedule B-1. If the vessel comes into collision with another vessel as a result of the negligence of the other vessel and any act of negligence of default of the master, marines, pilot or the servant of the carrier in the navigation or in the management of the vessel, the merchant will indemnify the carrier against all loss or liability to the other or non-carrying vessel or her owner insofar as such loss or liability represents loss of or damage to or any claim whatsoever of the owner of the said goods paid or payable by the carrying vessel or her owner as part of his claim against the carrying vessel or carrier. The foregoing provisions shall also apply where the owner operator or those in charge of any vessels or objects other than or in addition to the colliding vessels or objects are at fault in respect of a collision or contract.

 

	
17.  

	
Miscellaneous

 

	
17.1  

	
The waiver by the Company of a breach or default of any of the provisions set out in this Schedule B-1 shall not be construed as a waiver of any succeeding breach of the same or other provisions herein nor shall any delay or omission on the part of the Company to exercise or avail itself of any right power or privilege that it has or may have hereunder operate as a waiver of any breach or default by the Customer.

 

  

B-10

  

 

	
17.2  

	
The rights and remedies conferred on the Company under this Schedule B-1 shall be cumulative and shall be in addition to and without prejudice to any rights or remedies otherwise available (whether at law or in equity) to the Company.

 

	
17.3  

	
The defenses and limits of liability provided for by this Schedule B-1 shall apply in any action against the Company whether such action be founded in contract or tort or in whatsoever form.

 

	
17.4  

	
If any Clause or sub-clause of any part of this Schedule B-1 is unlawful, that Clause or sub-clause shall be deemed deleted, the Schedule B-1 remaining in full force as if such Clause or sub-clause had never been contained in it.

 

	
17.5  

	
Warehousing Fees shall begin to accrue upon delivery of the Goods to the Company in accordance with the terms hereof and shall be paid in full.  The Customer shall not be entitled to assert any credit set-off or counterclaim against the Company in order to justify withholding payment of any such Warehousing Fees in whole or in part.

 

For Storage Services rendered in the Netherlands apply Clauses ‎18-‎21 below.

 

	
18.  

	
General Liability in Connection with Storage Services

 

With respect to the Storage Services provided hereunder and subject to ‎Section 4.03 of the Agreement:

 

	
18.1  

	
All activities of work shall be performed for the Customer’s account and risk.  The Company shall not be liable for any damage or loss, unless the Customer proves that the damage or loss was caused by gross negligence or willful misconduct of the Company.  In case of damage or loss because of theft by burglary, the Company shall be considered to have applied adequate care, if it has provided proper closure of the place of storage.

 

	
18.2  

	
While the burden of proof to the contrary as to the cause rests upon the Customer, no liability exists in case damage or loss occurred due to (i) goods stored in open air (ii) handling, loading, storing, unloading by the Customer or persons acting for account of the Customer (iii) the nature of the Goods and/or through spontaneous combustion, inflammation, melting, breaking, corrosion, decay, desiccation, leakage, normal reduction of quality, or the action of moth or vermin etc. (iv) heat, sold, temperature variations or humidity if it was not agreed that the storage would be undertaken in a space meant to protect from such conditions (v) insufficiency or inadequacy of number, letters or marks of the package.

 

	
18.3  

	
If the Company proves that the damage or loss could have been a consequence, in whole or part, of one of the special risks indicated sub clauses ‎18.2 (i) - (v) above, the damage or loss is presumed to be the sole result of such risk(s).

 

	
18.4  

	
No liability exists if the Company proves that it has taken all measures that, taking into account all of the circumstances, could reasonably have been expected from it.  Such is deemed precedent in case of force majeure, governmental measures, claims, molest, strike, exclusion, sabotage, revolt, plundering, stagnation, fire, smoke, explosion, radiation, fire extinguishing water, water pipe breakage, flood, storm and in general any external calamity.

 

	
18.5  

	
The Company shall only be liable for the Goods themselves and shall never be liable for indirect, consequential or special damages, lost profits, financial loss and immaterial damage.

 

  

B-11

  

 

	
18.6  

	
The Company shall be relieved of its obligations with respect to the Storage Services provided hereunder, to the extent that the performance of such obligations is prevented or delayed by, or the non-performance of such obligations results wholly or partly from, the act or omission of the Customer or its agent or Owner (including any breach by the Customer of the terms or conditions in this Schedule) or by storm, flood, fire, explosion, civil disturbance, governmental or quasi-governmental action, breakdown or unavailability of premises, equipment or labor, or any other cause beyond the reasonable control of the Company.

 

	
19.  

	
Amount of Compensation

 

With respect to the Storage Services provided hereunder:

 

	
19.1  

	
In all cases and under all circumstances the Company’s liability in relation to lost or damaged Goods pursuant to any claims with respect to Storage Services provided hereunder shall be limited to the lower of (i) SDR2,000 per metric ton gross weight lost or damaged and (ii) the value of the Goods on the date of issue of the Warehouse Receipt.

 

	
19.2  

	
Notwithstanding 19.1 above, the Company’s liability to the Customer for Storage Services shall additionally be capped at SDR100,000 per event or series of events leading to the same cause of damage regardless of the number of Warehouse Receipts held by the Customer.

 

	
19.3  

	
For claims other than loss or damage to Goods pursuant to any claims with respect to Storage Services hereunder, the Company’s liability shall be capped at €681. per event.

 

	
20.  

	
Time for commencing suit

 

	
20.1  

	
All claims against the Company shall become extinct and irrevocably time barred if legal proceedings are not commenced within a period of 12 months.  The period shall commence on the earliest of (i) the day after the Company redelivered or should have redelivered the Goods (ii) the day the Company informed the Customer of the event giving rise to such claim; or (iii) notwithstanding the above, in any event this period shall commence on the say such claim has become due and payable.

 

	
21.  

	
Governing Law

 

	
21.1  

	
With respect to Storage Services rendered in the Netherlands, this Schedule B-1 shall be governed by Dutch Law.

 

For Storage Services rendered in Belgium apply Clauses ‎22-‎25 below.

 

	
22.  

	
General Liability in Connection with Storage Services

 

With respect to the Storage Services provided hereunder and subject to ‎Section 4.03 of the Agreement:

 

	
22.1  

	
The Company is only liable for the damage and/or loss that is the direct consequence of its proven fault.

 

	
22.2  

	
The Company is exempt from liability (i) for loss of profits, special, consequential or indirect loss or any kind, (ii) arising out of events occurring before or after Goods were in the custody of the Company, (iii) arising out of incorrect/incomplete instructions and (iv) arising out of 

 

  

B-12

  

 

circumstances beyond its reasonable control in particular the cases set out in Article 7 of the KVBG terms.

 

	
22.3  

	
The Company shall be relieved of its obligations with respect to the Storage Services provided hereunder, to the extent that the performance of such obligations is prevented or delayed by, or the non-performance of such obligations results wholly or partly from, the act or omission of the Customer or its agent or Owner (including any breach by the Customer of the terms or conditions in this Schedule) or by storm, flood, fire, explosion, civil disturbance, governmental or quasi-governmental action, breakdown or unavailability of premises, equipment or labor, or any other cause beyond the reasonable control of the Company.

 

	
23.  

	
Amount of Compensation

 

With respect to the Storage Services provided hereunder:

 

	
23.1  

	
The Company is only liable for the damage and/or loss with respect to any claims relating to the Storage Services that is the direct consequence of its proven fault.  The liability of the Company is limited to €l25. per metric ton.

 

	
23.2  

	
The maximum liability per Warehouse Receipt regardless of the number of packages for each claim, shall in no case exceed €2,500.

 

	
23.3  

	
Notwithstanding 23.1 and 23.2 above, in the event of multiple claims by the Customer, the Company’s liability shall be limited to €25,000, regardless of the number of Warehouse Receipts held by the Customer.

 

	
24.  

	
Time for commencing suit

 

	
24.1  

	
All liability of the Company with respect to any claims relating to the Storage Services shall lapse if the claim is not lodged in writing at the conclusion of the task.  Without Prejudice to the above, any claim against the Company shall expire and be irrevocably time barred one year after the determination of the damage and/or shortage and/or loss, or in the case of dispute, one year after the date of invoice, unless a shorter date is fixed by law.

 

	
25.  

	
Governing Law

 

	
25.1  

	
With respect to Storage Services rendered in Belgium, all legal disputes shall be settled according to this Schedule B-1 and according to Belgian law.

 

 

  

B-13

  

 

Schedule C-1

 

Storage Services Terms and Conditions for Physical Copper

for the Henry Bath & Son Ltd. and Henry Bath Italia Srl Permitted Warehouse Locations

 

	
1.  

	
Definitions for purposes of this Schedule C-1

 

“Affiliates” means Henry Bath BV and Henry Bath Singapore Pte Ltd, Henry Bath LLC and Henry Bath Ardiye Hizmetleri Limited Sirketi;

 

“Agreement” means the Authorized Participant Warehouse Agreement made as of [●], 2011 by and between the Henry Bath Group and the Customer (including the Addendum and any Exhibits attached thereto), into which this Schedule C-1 is incorporated;

 

“Authority” means a duly constituted legal or administrative person acting within its legal powers and exercising jurisdiction within any nation, state, municipality, port or airport;

 

“BIMCO” means the Baltic and International Maritime Council;

 

“Company” means the company that is providing the Storage Services, being either Henry Bath & Son Ltd., whose registered office is at 8 Princes Dock, Princes Parade, St Nicholas Place, Liverpool L3 1DL, or Henry Bath Italia Srl, whose registered office is at Piazzale Legnami, registered at the Companies Register of Trieste;

 

“Container” means freight container (including, without limitation, any container, flexitank, trailer, transportable tank, flat, pallet or any article used to consolidate goods) which may carry unique identification numbers and markings, as well as any equipment (including devices which permit its ready handling) forming part thereof or connected thereto;

 

“Dangerous Goods” includes (a) goods defined as “Dangerous” or “Hazardous” under applicable law, (b) goods which contain a latent defect or are or may become of a dangerous, inflammable or radioactive character or damaging to itself or other property when processed or put to normal use, or goods so dangerously packed, or goods likely to harbor or encourage vermin or other pests, or goods which owing to legal, administrative or other obstacles as to their carriage, discharge or otherwise may be detained or cause any other property or person to be detained, (c) empty receptacles which were previously used for the carriage of Dangerous Goods unless such receptacles have been rendered safe, (d) Goods which are considered to be dangerous or hazardous by any Authority and (e) Goods, packing materials or transport units that have been in contact with fumigants without the required warning information clearly displayed;

 

“Exchange” refers to any or all of the LME or Euronext LIFFE as relevant to the Goods;

 

“Goods” means the Copper in relation to which the Storage Services are provided by the Company and includes any Container, packaging or pallet supplied by or on behalf of the Customer;

 

“Hague-Visby Rules” means the provisions of the International Convention for the unification of certain rules relating to bills of lading signed at Brussels on 25 August 1924, as amended by the Protocol made at Brussels on 23 February 1968;

 

“LME” means the London Metal Exchange or any successor;

 

  

C-1

  

 

“Loss” includes (without limitation) loss (including theft), destruction, damage, unavailability, contamination, deterioration, delay, non-delivery, mis-delivery, unauthorised delivery, non compliance with instructions or obligations, or incorrect advice or information; 

 

“Warehouse Contract” means the agreement between the LME and the Warehouse-keeper setting out the Warehouse-keeper’s obligations as a warehouse and under which the Warehouse-keeper agrees to abide by the SWORD Regulations (as defined in the LME Rules); and

 

“REACH” means regulation (EC)1907/2006.

 

	
1.1  

	
Capitalized terms used but not defined in this Schedule C-1 shall have the meanings ascribed to such terms in the Agreement (including the Addendum).

 

	
1.2  

	
Where applicable, words importing the singular include the plural and vice versa; words importing a gender includes every gender and references to persons include bodies corporate and unincorporated.

 

	
1.3  

	
Clause headings are inserted for convenience only and shall be ignored in the interpretation of this Schedule C-1.

 

	
1.4  

	
Storage of Goods warranted under Exchange rules and delivery out to the last Exchange Warrant holder, shall be governed by (i) the Exchange rules and regulations including the Warehouse Contract; (ii) the terms on the front and reverse of the Warrant and (iii) the United Kingdom Warehousing Association Contract Conditions for Logistics October 2006 version.

 

	
1.5  

	
All other Storage Services provided by the Company, whether gratuitously or otherwise, shall be subject to the terms of the Agreement and this Schedule C-1.

 

	
2.  

	
Owner of Goods

 

	
2.1  

	
The Customer expressly warrants that it is the owner of the Goods and further warrants that it is authorized to accept the terms of this Schedule C-1.

 

	
3.  

	
Sub-contracting, exemptions and immunities of all servants and agents of the Company

 

	
3.1  

	
Subject to Section 2.01(b) of the Agreement, the Company shall be entitled to sub-contract on any terms or rates the provision of the whole or any part of the Storage Services. For the avoidance of doubt, subject to the terms of the Agreement (including, without limitation, Section 2.01(b) and Section 4.03), every exemption, limitation, condition and liberty herein contained and every right, exemption from liability, defense and immunity of whatsoever nature shall still be available to the Company notwithstanding the Company’s sub-contracting of the whole or any part of the Storage Services.

 

	
4.  

	
Methods, Procedures, Routes and Place of Storage

 

	
4.1  

	
Subject to express agreement with the Customer, the Company shall be entitled at its absolute discretion to decide on the means, route and procedure to be followed in providing the Storage Services, subject to the terms of the Agreement.  Notwithstanding the foregoing and without prejudice to the provisions in this Schedule C-1, the Company shall be at liberty to depart from the Customer’s instructions with respect to the means, route and procedure to be followed in 

 

  

C-2

  

 

providing the Storage Services if, in the reasonable opinion of the Company, it is at any stage necessary or desirable in the Customer’s interest to do so.

 

	
4.2  

	
Subject to the terms of the Agreement, the Company shall have discretion where to store Goods and, with notice to the Customer, to move the Goods from one storage facility to another; provided that such facility is in the same Permitted Warehouse Location.

 

	
5.  

	
Packing of the Goods

 

	
5.1  

	
Except where the Company is instructed in writing by the Customer to pack the Goods, the Customer warrants that all the Goods have been properly and sufficiently prepared, packed, stowed, labeled and/or marked and the preparation, packing, stowage, labeling and marking are appropriate to any operations or transactions affecting the Goods and in particular to withstand the ordinary risks of handling, storage and carriage.  The Company shall not be liable for any loss, damage or expenses incurred or suffered by the Customer as a result of the insufficiency of the packing of the Goods and the Customer shall indemnify the Company for any loss, damage or expenses incurred or suffered by the Company as a result of the insufficiency of the packing or labeling of the Goods.

 

	
5.2  

	
The Customer warrants that where the Company receives the Goods from the Customer already stowed in or on a Container or any other device constructed for the carriage of goods (each hereafter individually referred to as the “transport unit”), the transport unit is in good condition, and is suitable for the carriage of the Goods to the intended destination.

 

	
5.3  

	
Where the Company is instructed by the Customer to provide a Container, in the absence of any specific request in writing, the Company is not under an obligation to provide a Container of any particular type or quality.

 

	
6.  

	
Instructions and Documents to be provided to the Company with Respect to Storage Services

 

	
6.1  

	
The Customer shall ensure that all instructions, information, documents and safety data sheets required to be provided to the Company for provision of the Storage Services by the Company are accurate and adequate and are provided to the Company promptly.

 

	
6.2  

	
The Customer shall be liable for all consequences arising with respect to the Storage Services from the provision of inaccurate, obscure and inadequate instructions, information and/or documents; any failure to furnish any instructions, information and/or documents; or any failure to furnish any instructions, information and/or documents in time.

 

	
6.3  

	
Except in accordance with express instructions previously received in writing and accepted in writing by the Company, the Company shall not be obliged to make any declaration for the purposes of any statute, convention, regulation or contract as to the nature, chemical content or value of any Goods or as to any special interest in delivery.

 

	
6.4  

	
(a)   Unless otherwise previously agreed in writing, the Customer shall not deliver to the Company or cause the Company to deal with or handle Dangerous Goods.

 

	
(b)  

	
If the Customer delivers to the Company or causes the Company to deal with or handle Dangerous Goods, the Company shall not be liable for any loss or damage whatsoever caused by or to the Dangerous Goods and the Customer shall defend, indemnify and hold 

 

  

C-3

  

 

harmless the Company against all penalties, claims, liabilities (whether civil, criminal or otherwise), damages, costs and expenses whatsoever arising in connection with or incidental to such loss or damage, and the Dangerous Goods may without notice be destroyed or otherwise dealt with at the sole discretion of the Company or any other person in whose custody they may be at the relevant time without compensation to and at the cost of the Customer.

 

	
(c)  

	
If the Company agrees in writing to accept Dangerous Goods and subsequently, in the sole opinion of the Company, (i) they are deemed to constitute a risk to other goods, property, life or health or (ii) owing to legal, administrative or other obstacles whether as to their carriage, discharge or otherwise they may be detained or cause any other property or person to be detained, they may without notice be destroyed or otherwise dealt with at the expense of the Customer without compensation or any liability whatsoever attaching to the Company.

 

	
6.5  

	
Except insofar as has otherwise been agreed in writing, with respect to the Storage Services provided to the Customer hereunder, the Company shall be entitled and the Customer hereby authorizes the Company to enter into contracts on behalf of itself or the Customer and without notice to the Customer,

 

	
(a)  

	
for the carriage of Goods by any route, means or person;

 

	
(b)  

	
for the carriage of Goods of any description whether containerized or not on or under the deck of any vessel;

 

	
(c)  

	
for the storage, packing, transshipment, loading, unloading or handling of Goods by any person at any place whether on shore or afloat and for any length of time;

 

	
(d)  

	
for the carriage or storage of Goods in Containers or with other goods of whatever nature; or

 

	
(e)  

	
for the performance of any of its own obligations,

 

and to do such acts as in the sole opinion of the Company may be necessary or incidental to the performance of the Company’s obligations.

 

	
6.6  

	
In respect of the Storage Services provided by the Company hereunder: (a) the Company shall be entitled but under no obligation to depart from the Customer’s instructions in any respect if in the sole opinion of the Company there is good reason to do so in the Customer’s interest to mitigate or prevent damage to property or to prevent injury to persons and (b) the Company shall not thereby incur any additional liability whatsoever, other than its liability (if any) hereunder.

 

	
6.7  

	
In respect of the Storage Services provided by the Company hereunder, the Company may at any time comply with the orders or recommendations given by any Authority.  The responsibility of the Company in respect of the Goods shall cease on the delivery or other disposition of the Goods in accordance with such orders or recommendations.

 

	
7.  

	
Accuracy of Descriptions of the Goods and Quality of the Goods

 

  

C-4

  

 

	
7.1  

	
The Customer warrants and is bound by the accuracy of all descriptions, values and other particulars and/or information furnished to the Company in respect of the Goods for the purposes of customs clearance or any other purposes whatsoever and the Customer shall indemnify the Company from and against any and all losses, damages, expenses and fines whatsoever arising from the inaccuracy of any descriptions, particulars and/or information furnished, even if such inaccuracy is not due (whether in whole or in part) to any negligence or fault on the part of the Customer.

 

	
7.2  

	
The Company shall not act as an expert in relation to the nature or quality of the Goods and, other than any reporting or notification obligations of the Company pursuant to the Agreement, shall not be required or be obliged to provide any notification to any party whatsoever in relation to the state, nature, chemical content or quality of the Goods.

 

	
7.3  

	
Nothing in this Clause 7 shall be construed to relieve the Company from any liability for the Company’s failure to identify whether any Lot of Copper delivered to the Trust is of an Acceptable Delivery Brand.

 

	
8.  

	
Tallying / Weighing / Measuring of the Goods

 

	
8.1  

	
All operations with respect to the Storage Services provided by the Company hereunder, such as superintending, sampling, taring, tallying, weighing, measuring, etc., and receiving the Goods under survey, shall be undertaken only on the specific instructions of the Customer or otherwise in accordance with the terms of the Agreement and all costs thereof and relating thereto shall be payable by the Customer and, if first paid by the Company, shall be reimbursed to the Company by the Customer forthwith upon demand.

 

	
9.  

	
Delivery / Transportation / Loading / Unloading

 

	
9.1  

	
A statement by the Customer on the time of delivery of the Goods by the Customer or its designated representatives shall not be binding on the Company and the Company shall not be taken to guarantee the arrival time of the Goods.

 

	
9.2  

	
In the event that the loading and/or unloading time under any bill of lading and/or charterparty in respect of the Goods is inadequate regardless of the cause thereof, all costs resulting therefrom, including, without limitation, any demurrage charges shall be borne by the Customer, notwithstanding that the Company was the party that accepted or entered into the bill of lading and/or charter party from which the aforesaid costs arise.

 

	
9.3  

	
If delivery of the Goods or any part thereof is not taken by the Customer at the time and place when and where the Company or any person whose services the Company makes use of calls upon the Customer to take delivery thereof, the Company shall be entitled to store the Goods or any part thereof at the sole risk of the Customer, whereupon the liability of the Company in respect of such Goods shall wholly cease and the cost of such storage and all other expenses and liability whatsoever paid or payable or incurred or which may be incurred by the Company shall be paid by the Customer on demand.

 

	
9.4  

	
The Company requires a minimum of 48 hours notice before delivery out.  In addition the Customer shall provide

 

	
(a)  

	
clear written instructions and details of the party collecting on Customer’s behalf; and

 

  

C-5

  

 

	
(b)  

	
full payment of all outstanding charges relating to the Storage Services up to the date of collection, whether relating to the Goods to be delivered out or otherwise.

 

	
9.5  

	
[Intentionally Omitted.]

 

	
9.6  

	
[Intentionally Omitted.]

 

	
9.7  

	
The Company shall be entitled to treat any form of instructions from the Customer, in respect of delivering out to or holding the Goods for another person, as:

 

	
(a)  

	
authority to accept that other person’s instructions; and

 

	
(b)  

	
confirmation that the other person has appropriate legal interest in the Goods to give instructions as to their collection.

 

	
9.8  

	
The Customer shall notify the Company of all disposals of the Goods by sale or otherwise.  In the event that the Company is in any doubt as to the entitlement of any party to collect Goods, it shall be entitled to refuse or delay delivery without any liability for any costs and expenses until such doubt can be resolved to the reasonable satisfaction of the Company.

 

	
9.9  

	
Split collections may incur a supplementary charge. The maximum delivery out charge to Free on Truck (“FOT”) is notified from time-to-time by the Company to the LME and posted on the LME website. Loading into Containers or any other form of conveyance will incur additional charges. It is the responsibility of the Customer to present vehicles for loading promptly at the agreed time. Haulers are responsible for their own blocking, bracing and securing and ensuring that vehicle payload is within legal limits.

 

	
9.10  

	
The Goods are not necessarily in free circulation.  Any declaration or registration of the substance that is required under REACH together with any customs clearance and payment of duty, value added tax or other state or national taxes must be arranged and paid for by the Customer before the Goods can be removed from the periphery of the warehouse premises itself with the relevant  Warehouse Location.

 

	
10.  

	
Insurances

 

	
10.1  

	
Except as otherwise agreed in writing, the Company does not insure the Goods and the Customer shall self insure or make arrangements to cover the Goods against all insurable risks to their full insurable value (including all duties and taxes).

 

	
10.2  

	
Any right for the insurer to bring a subrogated claim against the Company shall be excluded.

 

	
10.3  

	
In the event that the Customer requires the assistance of the Company to take out any insurance on the Goods for and on behalf of the Customer, the Company may upon the written request by the Customer and on terms to be agreed take out such insurance on the Goods against such risks as may be notified by the Customer.

 

	
10.4  

	
Where the Company utilizes derricks and/or any other such equipment for carrying out the instructions given by the Customer with respect to Storage Services, it shall be entitled to arrange insurance at the Customer’s sole expense to cover the Company’s risks arising from the use of such equipment.

 

  

C-6

  

 

	
11.  

	
General Indemnities in Connection with Storage Services

 

	
11.1  

	
The Customer undertakes that no claim shall be made by the Customer against any director, servant or employee of the Company which imposes or seek to impose upon them any liability in connection with any part or all of the Storage Services undertaken by the Company and if any such claim is made by the Customer, the Customer undertakes to indemnify the Company and the said director, servant or employee against all consequences thereof.

 

	
11.2  

	
With respect to the Storage Services provided hereunder, the Customer shall hold harmless, defend and keep the Company indemnified from and against:

 

	
(a)  

	
All liability, loss, damage, delays, costs and expenses whatsoever, including without prejudice to the generality of the foregoing, all duties, taxes, imports, levies, deposits and outlays of whatsoever nature, levied by any Authority in relation to the Goods and for all payments and fines arising out of the Company acting in accordance with the Customer’s instructions with respect to the Storage Services or arising from any breach by the Customer of any warranty or obligation contained in this Schedule C-1 or from the negligence of the Customer;

 

	
(b)  

	
Without derogation from sub-clause ‎(a) above,

 

	
(i)  

	
any liability assumed or incurred by the Company when by reason of carrying out the Customer’s instructions with respect to the Storage Services the Company has reasonably become liable or may become liable to any other party;

 

	
(ii)  

	
any claim from any third party arising out of or in connection with a latent defect, inherent vice or poor condition of the Goods; and

 

	
(iii)  

	
any delay, cost, fine or extra expenditure suffered in connection with REACH.

 

	
(c)  

	
All claims, costs and demands whatsoever and by whomsoever made in excess of the liability of the Company under the terms of this Schedule C-1 regardless whether such claims, costs and demands arise from or in connection with the negligence or breach of duty of the Company its servants, Sub-Contractors or agents.

 

	
(d)  

	
Any advice or information, in whatever form as may be given or provided by the Company for the Customer only, and the Customer shall defend, indemnify and hold harmless the Company for all liability, loss, damage, costs and expenses arising out of any other person relying on such advice or information; provided that advice and information which are not related to instructions accepted by the Company are provided gratuitously and without liability.

 

	
(e)  

	
The Customer expressly agrees that no Sub-Contractor shall in any circumstances have any direct liability to the Customer for any loss or damage or delay of whatsoever kind arising or resulting directly or indirectly from any act, neglect or default on his part while acting in the course of or in connection with his employment or as agent of the Company or otherwise. For the avoidance of doubt, the foregoing shall not be deemed to relieve the Company from any liability it may have to the Customer under this Schedule C-1.

 

	
(f)  

	
Any demurrage or loss, damage, contamination, soiling or detention before, during or after the carriage of property (including but not limited to Containers) of the Company or 

 

  

C-7

  

 

any person or vessel referred to herein caused directly or indirectly by the Customer or any person acting as servants, agents or independent contractors for or on behalf of the Customer.

 

	
12.  

	
Lien

 

	
12.1  

	
All Goods and documents in the possession, custody and control of the Company or its agents or Affiliates shall be subject to a general lien and right of detention for all sums (including, without limitation, all Warehousing Fees, costs and charges payable by the Customer) due to the Company at any time and from time to time whether in respect of Storage Services provided or in respect of such Goods.  If the sums due as aforesaid are not satisfied within 7 days of a notice in writing by the Company to the Customer, the Company shall be entitled to sell or dispose of the Goods or documents whether by public auction, private treaty or otherwise, and the proceeds of sale shall be applied in satisfaction of firstly, the costs and expenses of the sale or disposal and secondly, the sums due to the Company (including without limitation all costs and expenses of maintaining or preserving the lien) without any liability whatsoever on the part of the Company to the Customer.  In the event that the proceeds of sale are insufficient to satisfy all sums due to the Company, the Company shall be entitled to recover from the Customer all sums which remain outstanding.  For the avoidance of doubt, the Company shall be not be required to obtain a court or tribunal order to exercise the Company’s rights or entitlements under this Clause.

 

	
13.  

	
Containers

 

	
13.1  

	
With respect to the Storage Services provided hereunder, if a Container holding Goods has not been packed or stuffed by the Company, the Company shall not be liable for loss of or damage to the contents thereof if caused by:

 

	
(a)  

	
the manner in which the Container has been packed or stuffed;

 

	
(b)  

	
the unsuitability of the contents for carriage in Containers;

 

	
(c)  

	
the unsuitability or defective condition of the Container provided that where the Container has been supplied by or on behalf of the Company, this paragraph shall apply only if the unsuitability or defective condition (i) arose without any negligence on the part of the Company or (ii) would have been apparent upon reasonable inspection by the Customer or person acting on behalf of the Customer or (iii) arose as a result of the peculiarity of the Goods and such peculiarity is not made known to the Company; or

 

	
(d)  

	
the Container not being sealed at the commencement of any carriage.

 

	
13.2  

	
The Customer shall defend, indemnify and hold harmless the Company against all liability, loss, damage, costs and expenses arising from one or more of the matters provided for in Clause ‎13.1 above.

 

	
13.3  

	
Where the Company is instructed to provide a Container, in the absence of any specific request in writing, the Company is not under an obligation to provide a Container of any particular type or quality.

 

	
14.  

	
General Liability in Connection with Storage Services

 

With respect to the Storage Services provided hereunder, and subject to ‎Section 4.03 of the Agreement:

 

  

C-8

  

 

	
14.1  

	
Subject to Clause ‎14.2 below, the Company excludes all liability for Loss however arising.

 

	
14.2  

	
If and to the extent that such Loss is directly caused by negligence or willful act or default of the Company, its employees (acting in furtherance of their duties as employees) or Sub-Contractors or agents (acting in furtherance of their duties as Sub-Contractors or agents) and subject to Clauses ‎14.3, ‎14.6 and ‎14.7 below, the Company will accept liability for Loss assessed on normal legal principles but not exceeding the Limit fixed by Clause ‎14.4.  Any quantification of value includes duties and taxes.

 

	
14.3  

	
In no case shall the Company be liable for any lost profit, income or savings, wasted expenditure or indirect or consequential loss.

 

	
14.4  

	
In no case shall any liability of the Company (including inter alia any liability in respect of duties and taxes) exceed the Limit, fixed as follows:

 

	
(a)  

	
The Customer may specify the Limit as an amount (in Sterling, US Dollars or Euros) per metric ton weight by notice in writing stating the Limit and the nature and maximum value of the Goods, including duty and taxes.  The Limit nominated by the Customer shall apply in respect of any cause of action arising after the Date (which means the 10th working day after the relevant notice is actually received by the Company).  This right is conditional upon the Customer paying within 7 days of receipt the Company’s invoices for its costs in insuring against its potential liability up to the Limit and/or to the extent that the Company elects to carry the risk itself, its extra charge equivalent to the estimated or likely cost of such insurance.

 

	
(b)  

	
If the Company having made reasonable efforts is unable to obtain insurance on reasonable terms to cover its liability up to the Limit nominated by the Customer, or if the Customer has not yet paid any invoice issued under sub clause ‎14.4(a), the Company may give 7 days written notice, and the Limit for causes of action arising after expiry shall be fixed as per sub-clause ‎(c) below.

 

	
(c)  

	
Unless and until a higher Limit has been fixed under sub-clause ‎14.4(a) and continues in effect, the Limit shall be the lower of the following:

 

	
(i)  

	
£100 per metric ton, or

 

	
(ii)  

	
£2,500 in any event whatsoever in respect of any one claim or one incident or series of related incidents; or

 

	
(iii)  

	
 in the event of multiple claims by a Customer the Limit shall not exceed a maximum amount of £22,500 regardless of the number of Warehouse Receipts held by such Customer.

 

	
14.5  

	
Without prejudice to the Company’s rights under this Schedule C-1 or otherwise to be paid free from deduction or set–off, any limitation of liability on the part of the Company shall be applied to any claim by the Customer before any set-off or counterclaim is asserted against money due to the Company.

 

	
14.6  

	
The Company shall not be liable for any claim by the Customer unless the Company receives (i) written notice of the claim within 10 days of the event giving rise to such claim and (ii) sufficient detail in writing to enable investigation of such claim within 21 days of the event 

 

  

C-9

  

 

 

giving rise to such claim.  In the case of failure to deliver, time shall run from the first working day after the expected date of delivery.  No legal proceedings (including any counterclaim) may be brought against the Company unless they are issued and served within 9 months of the event giving rise to the claim.

 

	
14.7  

	
The Company shall not be liable hereunder for any Loss to the extent that the same is caused by a breach of any of the Customer’s obligations or warranties or by any of the circumstances by virtue of which the Company is relieved of its contractual obligations under Clause ‎15.

 

	
15.  

	
Force Majeure

 

	
15.1  

	
The Company shall be relieved of its obligations with respect to the Storage Services provided hereunder, to the extent that the performance of such obligations is prevented or delayed by, or the non-performance of such obligations results wholly or partly from, the act or omission of the Customer or its agent (including any breach by the Customer of the terms or conditions in this Schedule) or by storm, flood, fire, explosion, civil disturbance, governmental or quasi-governmental action, breakdown or unavailability of premises, equipment or labor, or any other cause beyond the reasonable control of the Company.

 

	
16.  

	
Governing Law

 

	
16.1  

	
This Schedule C-1 between the Customer and the Company and any claims arising out of or in connection with provision of Storage Services by the Company in contract or tort or otherwise shall be governed by the law of England.

 

	
17.  

	
Company acting as Agent of the Customer

 

	
17.1  

	
With respect to the Storage Services provided hereunder:

 

	
(a)  

	
To the extent that the Company acts as an agent of the Customer, the Company does not make or purport to make any contract with the Customer for the carriage, storage or handling of the Goods nor for any other physical service in relation to them and acts solely on behalf of the Customer in securing such services by establishing contracts with third parties so that direct contractual relationships are established between the Customer and such third parties.

 

	
(b)  

	
The Company shall not be liable for the acts or omissions of such third parties referred to in sub-clause ‎(a) above.

 

	
(c)  

	
In respect of the Goods to be forwarded whether they are carriers by land, sea or air (whether shipowners, lightermen, canal, railway or aircraft operators or others) or warehouse keepers or other persons, the Company shall not be responsible for any accident or for any act of neglect or default howsoever arising whether willful or otherwise on the part of its agents or those with whom it contracts.  The Company shall not be responsible for any money paid or remitted by it on behalf of the senders to any persons in respect of the Goods to be forwarded, whether for the purpose of paying duties or charges in respect of the Goods or otherwise.  All general and special exemptions stated in this Clause shall apply, although the particular rates or charges made by the Company to the senders or persons forwarding the Goods may not be identical with the amounts paid by it to such agents, contractors or other persons.

 

  

C-10

  

 

	
17.2  

	
With respect to the Storage Services provided hereunder:

 

	
(a)  

	
Without prejudice to Clause ‎6.5, the Company, when acting as an agent of the Customer, has the authority of the Customer to enter into contracts on the Customer’s behalf and to do such acts so as to bind the Customer by such contracts and acts in all respects notwithstanding any departure from the Customer’s instructions.

 

	
(b)  

	
The Company shall only forward Goods subject to the contracts, terms, conditions and regulations of the various persons, companies or Authorities into whose possession the Goods may pass.

 

	
(c)  

	
The Customer shall defend, indemnify and hold harmless the Company in respect of all liability, loss, damage, costs or expenses arising out of any contracts made in the procurement of the satisfaction of the Customer’s requirements in accordance with this Clause ‎17.

 

	
18.  

	
Company acting as Principal

 

	
18.1  

	
With respect to the Storage Services provided hereunder, to the extent that the Company contracts as principal for the performance of the Customer’s instructions, the Company undertakes to perform or in its own name to procure the performance of the Customer’s instructions and subject to the provisions of this Schedule C-1 shall be liable for the loss of or damage to the Goods occurring from the time that the Goods are taken into its charge until the time of delivery.

 

	
18.2  

	
Notwithstanding any other provision in this Schedule C-1, if it is proven that loss of or damage to the Goods occurred, the Company’s liability shall be determined by the provisions contained in any international convention or national law, the provisions of which:

 

	 	
(a)

	
cannot be departed from by private contract, to the detriment of the claimant; and

 

	
  

	
(b)

	
would have applied if the claimant had made a separate and direct contract with the actual provider of the particular service in respect of that service or stage of carriage where the loss or damage occurred and received as evidence thereof any particular document which must be issued if such international convention or national law shall apply.

 

	
18.3  

	
Notwithstanding any provision in this Schedule C-1, but subject to Clause ‎18.4, if it can be proved that the loss of or damage to the Goods occurred at sea or inland waterway, the Company’s liability shall be limited to those set out in the Hague-Visby Rules and the Company shall be entitled to rely on all defences, exemptions or limitations provided to carriers by the Hague-Visby Rules.  Reference in the Hague-Visby Rules to carriage by sea shall be deemed to include reference to carriage by inland waterways and the Hague-Visby Rules shall be construed accordingly.

 

	
18.4  

	
Notwithstanding the provisions of Clause ‎18.3, if the loss of or damage to the Goods occurred at sea or on inland waterways, and the owner, charterer or operator of the vessel establishes a limitation fund, the liability of the Company shall be limited to the proportion of the said limitation fund allocated to the Goods.

 

  

C-11

  

 

	
19.  

	
General Average and Both to Blame Collision

 

	
19.1  

	
The Customer shall defend, indemnify and hold harmless the Company in respect of any general average or any claims of a general average nature which may be made on the Company and the Customer shall provide such security as may be required by the Company in this connection.

 

	
19.2  

	
The current Both-to-Blame Collision Clause as adopted by BIMCO is incorporated in and deemed to form part of this Schedule C-1. If the vessel comes into collision with another vessel as a result of the negligence of the other vessel and any act of negligence of default of the master, marines, pilot or the servant of the carrier in the navigation or in the management of the vessel, the merchant will indemnify the carrier against all loss or liability to the other or non-carrying vessel or her owner insofar as such loss or liability represents loss of or damage to or any claim whatsoever of the owner of the said goods paid or payable by the carrying vessel or her owner as part of his claim against the carrying vessel or carrier. The foregoing provisions shall also apply where the owner operator or those in charge of any vessels or objects other than or in addition to the colliding vessels or objects are at fault in respect of a collision or contract.

 

	
20.  

	
Miscellaneous

 

	
20.1  

	
The waiver by the Company of a breach or default of any of the provisions set out in this Schedule C-1 shall not be construed as a waiver of any succeeding breach of the same or other provisions herein nor shall any delay or omission on the part of the Company to exercise or avail itself of any right power or privilege that it has or may have hereunder operate as a waiver of any breach or default by the Customer.

 

	
20.2  

	
The rights and remedies conferred on the Company under this Schedule C-1 shall be cumulative and shall be in addition to and without prejudice to any rights or remedies otherwise available (whether at law or in equity) to the Company.

 

	
20.3  

	
The defenses and limits of liability provided for by this Schedule C-1 shall apply in any action against the Company whether such action be founded in contract or tort or in whatsoever form.

 

	
20.4  

	
Each exclusion or limitation in this Schedule C-1 exists separately and cumulatively.  If any clause or sub-clause of any part of this Schedule C-1 is unlawful, that clause or sub-clause shall be deemed deleted, the Schedule C-1 remaining in full force as if the clause or sub-clause had never been contained in it.

 

	
20.5  

	
Warehousing Fees shall begin to accrue upon delivery of the Goods to the Company in accordance with the terms hereof and shall be paid in full.  The Customer shall not be entitled to assert any credit set-off or counterclaim against the Company in order to justify withholding payment of any such Warehousing Fees in whole or in part.

 

  

C-12

  

 

Schedule D-1

 

Storage Services Terms and Conditions for Physical Copper

for the HB Singapore Pte Ltd. Permitted Warehouse Locations

 

	
1.  

	
Definitions for purposes of this Schedule D-1

 

“Affiliates” means Henry Bath & Son Ltd., Henry Bath LLC, Henry Bath Ardiye Hizmetleri Limited Sirketi, Henry Bath Italia Srl and Henry Bath BV;

 

“Agreement” means the Authorized Participant Warehouse Agreement made as of [●], 2011 by and between the Henry Bath Group and the Customer (including the Addendum and any Exhibits attached thereto), into which this Schedule D-1 is incorporated;

 

“Authority” means a duly constituted legal or administrative person acting within its legal powers and exercising jurisdiction within any nation, state, municipality, port or airport;

 

“BIMCO” means the Baltic and International Maritime Council;

 

“Company” means Henry Bath Singapore Pte Ltd. whose registered office is at Warehouse SB8, Sembawang Wharves, 21 Deptford Road, Singapore 759660;

 

“Container” means freight container (including, without limitation, any container, flexitank, trailer, transportable tank, flat, pallet or any article used to consolidate goods) which may carry unique identification numbers and markings, as well as any equipment (including devices which permit its ready handling) forming part thereof or connected thereto;

 

“Dangerous Goods” includes (a) dangerous goods as defined in the Maritime and Port Authority of Singapore (Dangerous Goods, Petroleum and Explosives) Regulations 2005, (b) goods specified in the Third Schedule to the Road Traffic (Expressway Traffic) Rules (1990 Ed.), (c) goods which are or may become of a dangerous, inflammable or radio-active character or damaging to itself or other property, or goods so dangerously packed, or goods likely to harbor or encourage vermin or other pests, or goods which owing to legal, administrative or other obstacles as to their carriage, discharge or otherwise may be detained or cause any other property or person to be detained, (d) empty receptacles which were previously used for the carriage of Dangerous Goods unless such receptacles have been rendered safe, (e) Goods which are considered to be dangerous or hazardous by any Authority and (f) Goods, packing materials or transport units that have been in contact with fumigants without the required warning information clearly displayed;

 

“Goods” means the Copper in relation to which the Storage Services are provided by the Company and includes any Container, packaging or pallet supplied by or on behalf of the Customer;

 

“Hague-Visby Rules” means the provisions of the International Convention for the unification of certain rules relating to bills of lading signed at Brussels on 25 August 1924, as amended by the Protocol made at Brussels on 23 February 1968;

 

“LME” means the London Metal Exchange or any successor; and

 

  

D-1

  

 

“Warehouse Contract” means the agreement between the LME and the Warehouse-keeper setting out the Warehouse-keeper’s obligations as a warehouse and under which the Warehouse-keeper agrees to abide by the SWORD Regulations (as defined in the LME Rules).

 

	
1.1  

	
Capitalized terms used but not defined in this Schedule D-1 shall have the meanings ascribed to such terms in the Agreement (including the Addendum).

 

	
1.2  

	
Where applicable, words importing the singular include the plural and vice versa; words importing a gender includes every gender and references to persons include bodies corporate and unincorporated.

 

	
1.3  

	
Clause headings are inserted for convenience only and shall be ignored in the interpretation of this Schedule D-1.

 

	
1.4  

	
Storage of Goods warranted under LME rules and delivery out to the last LME Warrant holder shall be governed by (i) the LME rules and regulations including the Warehouse Contract, (ii) the terms on the front and reverse of the Warrant and (iii) The Singapore Logistics Association Standard Terms and Conditions as amended from time to time.

 

	
1.5  

	
All other Storage Services provided by the Company, whether gratuitously or otherwise, shall be subject to the terms of the Agreement and this Schedule D-1.

 

	
2.  

	
Owner of Goods

 

	
2.1  

	
The Customer expressly warrants that it is the owner of the Goods and further warrants that it is authorized to accept the terms of this Schedule D-1.

 

	
3.  

	
Sub-contracting, exemptions and immunities of all servants and agents of the Company

 

	
3.1  

	
Subject to Section 2.01(b) of the Agreement, the Company shall be entitled to sub-contract on any terms or rates the provision of the whole or any part of the Storage Services. For the avoidance of doubt, subject to the terms of the Agreement (including, without limitation, Section 2.01(b) and Section 4.03), every exemption, limitation, condition and liberty herein contained and every right, exemption from liability, defense and immunity of whatsoever nature shall still be available to the Company notwithstanding the Company’s sub-contracting of the whole or any part of the Storage Services.

 

	
4.  

	
Methods, Procedures, Routes and Place of Storage

 

	
4.1  

	
Subject to express agreement with the Customer, the Company shall be entitled at its absolute discretion to decide on the means, route and procedure to be followed in providing the Storage Services, subject to the terms of the Agreement.  Notwithstanding the foregoing and without prejudice to the provisions in this Schedule D-1, the Company shall be at liberty to depart from the Customer’s instructions with respect to the means, route and procedure to be followed in providing the Storage Services if, in the reasonable opinion of the Company, it is at any stage necessary or desirable in the Customer’s interest to do so.

 

	
4.2  

	
Subject to the terms of the Agreement, the Company shall have discretion where to store Goods and, with notice to the Customer, to move the Goods from one storage facility to another; provided that such facility is in the same Permitted Warehouse Location.

 

  

D-2

  

 

	
5.  

	
Packing of the Goods

 

	
5.1  

	
Except where the Company is instructed in writing by the Customer to pack the Goods, the Customer warrants that all the Goods have been properly and sufficiently prepared, packed, stowed, labeled and/or marked and the preparation, packing, stowage, labeling and marking are appropriate to any operations or transactions affecting the Goods and in particular to withstand the ordinary risks of handling, storage and carriage.  The Company shall not be liable for any loss, damage or expenses incurred or suffered by the Customer as a result of the insufficiency of the packing of the Goods and the Customer shall indemnify the Company for any loss, damage or expenses incurred or suffered by the Company as a result of the insufficiency of the packing or labeling of the Goods.

 

	
5.2  

	
The Customer warrants that where the Company receives the Goods from the Customer already stowed in or on a Container or any other device constructed for the carriage of goods (each hereafter individually referred to as the “transport unit”), the transport unit is in good condition, and is suitable for the carriage of the Goods to the intended destination.

 

	
5.3  

	
Where the Company is instructed by the Customer to provide a Container, in the absence of any specific request in writing, the Company is not under an obligation to provide a Container of any particular type or quality.

 

	
6.  

	
Instructions and Documents to be provided to the Company with Respect to Storage Services

 

	
6.1  

	
The Customer shall ensure that all instructions, information, safety data sheets and documents required to be provided to the Company for provision of the Storage Services by the Company are accurate and adequate and are provided to the Company promptly.

 

	
6.2  

	
The Customer shall be liable for all consequences with respect to the Storage Services arising from the provision of inaccurate, obscure and inadequate instructions, information and/or documents; any failure to furnish any instructions, information and/or documents; or any failure to furnish any instructions, information and/or documents in time.

 

	
6.3  

	
Except in accordance with express instructions previously received in writing and accepted in writing by the Company, the Company shall not be obliged to make any declaration for the purposes of any statute, convention, regulation or contract as to the nature, chemical content or value of any Goods or as to any special interest in delivery.

 

	
6.4  

	
Unless otherwise previously agreed in writing, the Customer shall not deliver to the Company or cause the Company to deal with or handle Dangerous Goods.

 

	
(a)  

	
If the Customer delivers to the Company or causes the Company to deal with or handle Dangerous Goods, the Company shall not be liable for any loss or damage whatsoever caused by or to the Dangerous Goods and the Customer shall defend, indemnify and hold harmless the Company against all penalties, claims, liabilities (whether civil, criminal or otherwise), damages, costs and expenses whatsoever arising in connection with or incidental to such loss or damage, and the Dangerous Goods may without notice be destroyed or otherwise dealt with at the sole discretion of the Company or any other person in whose custody they may be at the relevant time without compensation to and at the cost of the Customer.

 

  

D-3

  

 

	
(b)  

	
If the Company agrees in writing to accept Dangerous Goods and subsequently, in the sole opinion of the Company, (i) they are deemed to constitute a risk to other goods, property, life or health or (ii) owing to legal, administrative or other obstacles whether as to their carriage, discharge or otherwise they may be detained or cause any other property or person to be detained, they may without notice be destroyed or otherwise dealt with at the expense of the Customer without compensation or any liability whatsoever attaching to the Company.

 

	
6.5  

	
Except insofar as has otherwise been agreed in writing, with respect to the Storage Services provided to the Customer hereunder, the Company shall be entitled and the Customer hereby authorizes the Company to enter into contracts on behalf of itself or the Customer and without notice to the Customer,

 

	
(a)  

	
for the carriage of Goods by any route, means or person;

 

	
(b)  

	
for the carriage of Goods of any description whether containerized or not on or under the deck of any vessel;

 

	
(c)  

	
for the storage, packing, transshipment, loading, unloading or handling of Goods by any person at any place whether on shore or afloat and for any length of time;

 

	
(d)  

	
for the carriage or storage of Goods in Containers or with other goods of whatever nature; or

 

	
(e)  

	
for the performance of any of its own obligations,

 

and to do such acts as in the sole opinion of the Company may be necessary or incidental to the performance of the Company’s obligations.

 

	
6.6  

	
In respect of the Storage Services provided by the Company hereunder: (a) the Company shall be entitled but under no obligation to depart from the Customer’s instructions in any respect if in the sole opinion of the Company there is good reason to do so in the Customer’s interest to mitigate or prevent damage to property or to prevent injury to persons and (b) the Company shall not thereby incur any additional liability whatsoever, other than its liability (if any) hereunder.

 

	
6.7  

	
In respect of the Storage Services provided by the Company hereunder, the Company may at any time comply with the orders or recommendations given by any Authority.  The responsibility of the Company in respect of the Goods shall cease on the delivery or other disposition of the Goods in accordance with such orders or recommendations.

 

	
7.  

	
Accuracy of Descriptions of the Goods and Quality of the Goods

 

	
7.1  

	
The Customer warrants and is bound by the accuracy of all descriptions, values and other particulars and/or information furnished to the Company in respect of the Goods for the purposes of customs clearance or any other purposes whatsoever and the Customer shall indemnify the Company from and against any and all losses, damages, expenses and fines whatsoever arising from the inaccuracy of any descriptions, particulars and/or information furnished, even if such inaccuracy is not due (whether in whole or in part) to any negligence or fault on the part of the Customer.

 

  

D-4

  

 

	
7.2  

	
The Company shall not act as an expert in relation to the nature or quality of the Goods and, other than any reporting or notification obligations of the Company pursuant to the Agreement, shall not be required or be obliged to provide any notification to any party whatsoever in relation to the state, nature, chemical content or quality of the Goods.

 

	
7.3  

	
Nothing in this Clause 7 shall be construed to relieve the Company from any liability for the Company’s failure to identify whether any Lot of Copper delivered to the Trust is of an Acceptable Delivery Brand.

 

	
8.  

	
Tallying / Weighing / Measuring of the Goods

 

	
8.1  

	
All operations with respect to the Storage Services provided by the Company hereunder, such as superintending, sampling, taring, tallying, weighing, measuring, etc., and receiving the Goods under survey, shall be undertaken only on the specific instructions of the Customer or otherwise in accordance with the terms of the Agreement and all costs thereof and relating thereto shall be payable by the Customer and, if first paid by the Company, shall be reimbursed to the Company by the Customer forthwith upon demand.

 

	
9.  

	
Delivery / Transportation / Loading / Unloading

 

	
9.1  

	
A statement by the Customer on the time of delivery of the Goods by the Customer or its designated representatives shall not be binding on the Company and the Company shall not be taken to guarantee the arrival time of the Goods.

 

	
9.2  

	
In the event that the loading and/or unloading time under any bill of lading and/or charterparty in respect of the Goods is inadequate regardless of the cause thereof, all costs resulting therefrom, including, without limitation, any demurrage charges shall be borne by the Customer, notwithstanding that the Company was the party that accepted or entered into the bill of lading and/or charter party from which the aforesaid costs arise.

 

	
9.3  

	
If delivery of the Goods or any part thereof is not taken by the Customer at the time and place when and where the Company or any person whose services the Company makes use of calls upon the Customer to take delivery thereof, the Company shall be entitled to store the Goods or any part thereof at the sole risk of the Customer, whereupon the liability of the Company in respect of such Goods shall wholly cease and the cost of such storage and all other expenses and liability whatsoever paid or payable or incurred or which may be incurred by the Company shall be paid by the Customer on demand.

 

	
9.4  

	
The Company requires a minimum of 48 hours notice before delivery out.  In addition the Customer shall provide

 

	
(a)  

	
clear written instructions and details of the party collecting on Customer’s behalf; and

 

	
(b)  

	
full payment of all outstanding charges relating to the Storage Services up to the date of collection whether relating to the Goods to be delivered out or otherwise.

 

	
9.5  

	
[Intentionally Omitted.]

 

	
9.6  

	
[Intentionally Omitted.]

 

  

D-5

  

 

	
9.7  

	
The Company shall be entitled to treat any form of instructions from the Customer, in respect of delivering out to or holding the Goods for another person, as:

 

	
(a)  

	
authority to accept that other person’s instructions; and

 

	
(b)  

	
confirmation that the other person has appropriate legal interest in the Goods to give instructions as to their collection.

 

	
9.8  

	
The Customer shall notify the Company of all disposals of the Goods by sale or otherwise.  In the event that the Company is in any doubt as to the entitlement of any party to collect Goods, it shall be entitled to refuse or delay delivery without any liability for any costs and expenses until such doubt can be resolved to the reasonable satisfaction of the Company.

 

	
9.9  

	
Split collections may incur a supplementary charge. The maximum delivery out charge to Free on Truck (“FOT”) is notified from time-to-time by the Company to the LME and posted on the LME website. Loading into Containers or any other form of conveyance will incur additional charges. It is the responsibility of the Customer to present vehicles for loading promptly at the agreed time. Haulers are responsible for their own blocking, bracing and securing and ensuring that vehicle payload is within legal limits.

 

	
9.10  

	
The Goods are not necessarily in free circulation and may require customs clearance and payment of duty, value added tax or other state or national taxes to be arranged and paid for by the Customer before the Goods can be removed from the periphery of the warehouse premises itself with the relevant Warehouse Location.

 

	
10.  

	
Insurance

 

	
10.1  

	
The Goods are not insured by the Company against loss or damage at any time however caused.

 

	
10.2  

	
The Customer shall self insure or make arrangements to cover the Goods against all insurable risks to their full insurable value (including all duties and taxes)

 

	
10.3  

	
Any right for the insurer to bring a subrogated claim against the Company shall be excluded.

 

	
10.4  

	
In the event that the Customer requires the assistance of the Company to take out any insurance on the Goods for and on behalf of the Customer, the Company may upon the written request by the Customer and on terms to be agreed take out such insurance on the Goods against such risks as may be notified by the Customer.

 

	
10.5  

	
Where the Company utilizes derricks and/or any other such equipment for carrying out the instructions given by the Customer with respect to Storage Services, it shall be entitled to arrange insurance at the Customer’s sole expense to cover the Company’s risks arising from the use of such equipment.

 

	
11.  

	
General Indemnities in Connection with Storage Services

 

	
11.1  

	
The Customer undertakes that no claim shall be made by the Customer against any director, servant or employee of the Company which imposes or seek to impose upon them any liability in connection with any part or all of the Storage Services undertaken by the Company and if any such claim is made by the Customer, the Customer undertakes to indemnify the Company and the said director, servant or employee against all consequences thereof.

 

  

D-6

  

 

	
11.2  

	
With respect to the Storage Services provided hereunder, the Customer shall hold harmless, defend and keep the Company indemnified from and against:

 

	
(a)  

	
All liability, loss, damage, delays, costs and expenses whatsoever, including without prejudice to the generality of the foregoing, all duties, taxes, imports, levies, deposits and outlays of whatsoever nature, levied by any Authority in relation to the Goods and for all payments and fines arising out of the Company acting in accordance with the Customer’s instructions with respect to the Storage Services or arising from any breach by the Customer of any warranty or obligation contained in this Schedule D-1 or from the negligence of the Customer;

 

	
(b)  

	
Without derogation from sub-clause ‎(a) above,

 

	
(i)  

	
any liability assumed or incurred by the Company when by reason of carrying out the Customer’s instructions with respect to the Storage Services the Company has reasonably become liable or may become liable to any other party; and

 

	
(ii)  

	
any claim from any third party arising out of or in connection with a latent defect, inherent vice or poor condition of the Goods.

 

	
(c)  

	
All claims, costs and demands whatsoever and by whomsoever made in excess of the liability of the Company under the terms of this Schedule D-1 regardless whether such claims, costs and demands arise from or in connection with the negligence or breach of duty of the Company its servants, Sub-Contractors or agents.

 

	
(d)  

	
Any advice or information, in whatever form as may be given or provided by the Company for the Customer only, and the Customer shall defend, indemnify and hold harmless the Company for all liability, loss, damage, costs and expenses arising out of any other person relying on such advice or information; provided that advice and information which are not related to instructions accepted by the Company are provided gratuitously and without liability.

 

	
(e)  

	
The Customer expressly agrees that no Sub-Contractor shall in any circumstances have any direct liability to the Customer for any loss or damage or delay of whatsoever kind arising or resulting directly or indirectly from any act, neglect or default on his part while acting in the course of or in connection with his employment or as agent of the Company or otherwise. For the avoidance of doubt, the foregoing shall not be deemed to relieve the Company from any liability it may have to the Customer under this Schedule D-1.

 

	
(f)  

	
Any demurrage or loss, damage, contamination, soiling or detention before, during or after the carriage of property (including but not limited to Containers) of the Company or any person or vessel referred to herein caused directly or indirectly by the Customer or any person acting as servants, agents or independent contractors for or on behalf of the Customer.

 

	
12.  

	
Lien

 

	
12.1  

	
All Goods and documents in the possession, custody and control of the Company or its agents or Affiliates shall be subject to a general lien and right of detention for all sums (including, without limitation, all Warehousing Fees, costs and charges payable by the Customer) due to the

 

  

D-7

  

 

Company at any time and from time to time whether in respect of Storage Services provided or in respect of such Goods.  If the sums due as aforesaid are not satisfied within 7 days of a notice in writing by the Company to the Customer, the Company shall be entitled to sell or dispose of the Goods or documents whether by public auction, private treaty or otherwise, and the proceeds of sale shall be applied in satisfaction of firstly, the costs and expenses of the sale or disposal and secondly, the sums due to the Company (including without limitation all costs and expenses of maintaining or preserving the lien) without any liability whatsoever on the part of the Company to the Customer.  In the event that the proceeds of sale are insufficient to satisfy all sums due to the Company, the Company shall be entitled to recover from the Customer all sums which remain outstanding.  For the avoidance of doubt, the Company shall be not be required to obtain a court or tribunal order to exercise the Company’s rights or entitlements under this Clause.

 

	
13.  

	
Containers

 

	
13.1  

	
With respect to the Storage Services provided hereunder, if a Container holding Goods has not been packed or stuffed by the Company, the Company shall not be liable for loss of or damage to the contents thereof if caused by:

 

	 	
(a)  

	
the manner in which the Container has been packed or stuffed;

 

	 	
(b) 

	
the unsuitability of the contents for carriage in Containers;

 

	 	
(c)

	
the unsuitability or defective condition of the Container provided that where the Container has been supplied by or on behalf of the Company, this paragraph shall apply only if the unsuitability or defective condition (i) arose without any negligence on the part of the Company or (ii) would have been apparent upon reasonable inspection by the Customer or person acting on behalf of the Customer or (iii) arose as a result of the peculiarity of the Goods and such peculiarity is not made known to the Company; or

 

	 	
(d) 

	
the Container not being sealed at the commencement of any carriage.

 

	
13.2  

	
The Customer shall defend, indemnify and hold harmless the Company against all liability, loss, damage, costs and expenses arising from one or more of the matters provided for in Clause ‎13.1 above.

 

	
13.3  

	
Where the Company is instructed to provide a Container, in the absence of any specific request in writing, the Company is not under an obligation to provide a Container of any particular type or quality.

 

	
14.  

	
General Liability in Connection with Storage Services

 

With respect to the Storage Services provided hereunder and subject to ‎Section 4.03 of the Agreement:

 

	
14.1  

	
The Company shall not be liable for any loss or damage whatsoever arising from:

 

	
(a)  

	
the act or omission of the Customer or any person acting on the Customer’s behalf;

 

	
(b)  

	
compliance with the instructions given to the Company by the Customer or any other person entitled to give such instructions on the Customer’s behalf or absent sufficient instructions;

 

  

D-8

  

 

	 	
(c)  

	
insufficiency of the preparation, packing, storage, labeling or marking of the Goods except where such service has been provided by the Company;

 

	 	
(d)  

	
handling, loading, stowage or unloading of the Goods by the Customer or any person acting on the Customer’s behalf, except where such service had been provided by the Company;

 

	 	
(e)  

	
inherent vice of the Goods;

 

	 	
(f)  

	
any event described under Clause ‎16.1; or

 

	 	
(g)  

	
any cause or event in which the Company could not avoid and the consequences whereof it could not prevent by the exercise of reasonable diligence.

 

	
14.2  

	
The Company shall not in any circumstances whatsoever and howsoever arising, including, without limitation, any negligence on the part of the Company, its servants and/or agents, be liable for loss or damage howsoever caused to property other than to the Goods themselves.

 

	
15.  

	
Amount of Compensation

 

With respect to the Storage Services provided hereunder:

 

	
15.1  

	
The liability of the Company howsoever arising and notwithstanding that such liability shall have arisen from the neglect, gross or otherwise, of or default of or breach of any of the provisions in this Schedule D-1, including any willful misconduct by the Company, its servants, agents or subcontractors, shall not exceed:

 

	
(a)  

	
in respect of all claims other than those subject to the provisions of Clause ‎15.1(b) below, the lesser of:

 

	
(i)  

	
the value of the Goods lost, damaged, misdirected, misdelivered or in respect of which a claim arises; or

 

	
(ii)  

	
US$5.00 per gross kilogram of the said Goods,

 

and shall not exceed US$100,000.00 (one hundred thousand Singapore dollars) in any event whatsoever in respect of any one claim or any one incident or series of related incidents, and in the event of multiple claims by the Customer a maximum amount of US$500,000.00 (five hundred thousand Singapore dollars), regardless of the number of Warehouse Receipts held by such Customer; and

 

	
(b)  

	
in respect of claims for delay where not excluded by the provisions of this Schedule D-1, the amount of the Company’s charge for the Storage Services provided in respect of the Goods delayed.

 

	
15.2  

	
By special agreement in writing and on payment by the Customer of additional charges as determined by the Company at such time, higher compensation may be claimed from the Company not exceeding the value of the Goods or the agreed value, whichever is the lesser.

 

	
15.3  

	
For the purposes of Clauses ‎15.1 and ‎15.2, the value of the Goods:

 

  

D-9

  

 

	
(a)  

	
shall be calculated by reference to the invoice value of the Goods plus freight and insurance if paid; and

 

	
(b)  

	
if there is no invoice value of the Goods, shall be calculated by reference to the value of such Goods at the place and time when they are delivered to the Customer, their assignees or such persons as instructed by the Customer or should have been so delivered.  The value of the Goods shall be fixed according to the current market value or commodity exchange price or if there is no current market value or commodity exchange price, by reference to the normal value of Goods of the same kind and quality.

 

	
15.4  

	
The Company shall be discharged from any liability whatsoever unless:

 

	
(a)  

	
notice of any claim, such notice being a condition precedent to any liability on the part of the Company, is received in writing by the Company or its agent within 7 days after the date specified in Clause ‎15.5 below; and

 

	
(b)  

	
notice of arbitration is given in the proper forum within 12 months after the date specified in Clause ‎15.5 below.

 

	
15.5  

	
The date referred to in Clause ‎15.4 above shall be:

 

	
(a)  

	
in the case of delay or non-delivery of the Goods, the date that the Goods should have been physically delivered in accordance with this Schedule D-1; and

 

	
(b)  

	
in any other case, the date of the event giving rise to the claim.

 

	
15.6  

	
The Company shall not be liable for any loss, damage, costs or expenses of any nature whatsoever incurred or suffered by the Customer:

 

	
(a)  

	
as a result of any latent defect in the Goods; or

 

	
(b)  

	
of an indirect or consequential nature including, without limitation, any economic loss or other loss of turnover, profits, business or goodwill.

 

	
16.  

	
Force Majeure

 

	
16.1  

	
The Company shall be relieved of its obligations with respect to the Storage Services provided hereunder, to the extent that the performance of such obligations is prevented or delayed by, or the non-performance of such obligations results wholly or partly from, the act or omission of the Customer or its agent (including any breach by the Customer of the terms or conditions in this Schedule) or by storm, flood, fire, explosion, civil disturbance, governmental or quasi-governmental action, breakdown or unavailability of premises, equipment or labor, or any other cause beyond the reasonable control of the Company.

 

	
17.  

	
Governing Law and Arbitration

 

	
17.1  

	
This Schedule D-1 shall be subject to the laws of Singapore.

 

	
17.2  

	
Any dispute arising out of or in connection with this Schedule D-1 or the Storage Services shall be referred to and finally resolved by arbitration in Singapore in the English language in 

 

  

D-10

  

 

accordance with the Arbitration Rules of the Singapore International Arbitration Centre (the “SIAC”) in force as at the date of such reference.

 

	
18.  

	
Company acting as Agent of the Customer

 

	
18.1  

	
With respect to the Storage Services provided hereunder:

 

	
(a)  

	
To the extent that the Company acts as an agent of the Customer, the Company does not make or purport to make any contract with the Customer for the carriage, storage or handling of the Goods nor for any other physical service in relation to them and acts solely on behalf of the Customer in securing such services by establishing contracts with third parties so that direct contractual relationships are established between the Customer and such third parties.

 

	
(b)  

	
The Company shall not be liable for the acts or omissions of such third parties referred to in sub-clause (a) above.

 

	
(c)  

	
In respect of the Goods to be forwarded whether they are carriers by land, sea or air (whether shipowners, lightermen, canal, railway or aircraft operators or others) or warehouse keepers or other persons, the Company shall not be responsible for any accident or for any act of neglect or default howsoever arising whether willful or otherwise on the part of its agents or those with whom it contracts.  The Company shall not be responsible for any money paid or remitted by it on behalf of the senders to any persons in respect of the Goods to be forwarded, whether for the purpose of paying duties or charges in respect of the Goods or otherwise.  All general and special exemptions stated in this Clause shall apply, although the particular rates or charges made by the Company to the senders or persons forwarding the Goods may not be identical with the amounts paid by it to such agents, contractors or other persons.

 

	
18.2  

	
With respect to the Storage Services provided hereunder:

 

	
(a)  

	
Without prejudice to Clause ‎6.5, the Company when acting as an agent of the Customer, has the authority of the Customer to enter into contracts on the Customer’s behalf and to do such acts so as to bind the Customer by such contracts and acts in all respects notwithstanding any departure from the Customer’s instructions.

 

	
(b)  

	
The Company shall only forward Goods subject to the contracts, terms, conditions and regulations of the various persons, companies or Authorities into whose possession the Goods may pass.

 

	
(c)  

	
The Customer shall defend, indemnify and hold harmless the Company in respect of all liability, loss, damage, costs or expenses arising out of any contracts made in the procurement of the satisfaction of the Customer’s requirements in accordance with this Clause ‎18.

 

	
19.  

	
Company acting as Principal

 

	
19.1  

	
With respect to the Storage Services provided hereunder, to the extent that the Company contracts as principal for the performance of the Customer’s instructions, the Company undertakes to perform or in its own name to procure the performance of the Customer’s instructions and subject to the provisions of this Schedule D-1 shall be liable for the loss of or 

 

  

D-11

  

 

damage to the Goods occurring from the time that the Goods are taken into its charge until the time of delivery.

 

	
19.2  

	
Notwithstanding any other provision in this Schedule D-1, except for the provisions in Clause ‎15 above, if it is proven that loss of or damage to the Goods occurred, the Company’s liability shall be determined by the provisions contained in any international convention or national law, the provisions of which:

 

	 	
(a) 

	
cannot be departed from by private contract, to the detriment of the claimant; and

 

	
  

	
(b)

	
would have applied if the claimant had made a separate and direct contract with the actual provider of the particular service in respect of that service or stage of carriage where the loss or damage occurred and received as evidence thereof any particular document which must be issued if such international convention or national law shall apply.

 

	
19.3  

	
Notwithstanding any provision in this Schedule D-1, but subject to Clause ‎19.4, if it can be proved that the loss of or damage to the Goods occurred at sea or inland waterway, the Company’s liability shall be limited to those set out in the Hague-Visby Rules and the Company shall be entitled to rely on all defences, exemptions or limitations provided to carriers by the Hague-Visby Rules.  Reference in the Hague-Visby Rules to carriage by sea shall be deemed to include reference to carriage by inland waterways and the Hague-Visby Rules shall be construed accordingly.

 

	
19.4  

	
Notwithstanding the provisions of Clause ‎19.3, if the loss of or damage to the Goods occurred at sea or on inland waterways, and the owner, charterer or operator of the vessel establishes a limitation fund, the liability of the Company shall be limited to the proportion of the said limitation fund allocated to the Goods.

 

	
20.  

	
General Average and Both to Blame Collision

 

	
20.1  

	
The Customer shall defend, indemnify and hold harmless the Company in respect of any general average or any claims of a general average nature which may be made on the Company and the Customer shall provide such security as may be required by the Company in this connection.

 

	
20.2  

	
The current Both-to-Blame Collision Clause as adopted by BIMCO is incorporated in and deemed to form part of this Schedule D-1. If the vessel comes into collision with another vessel as a result of the negligence of the other vessel and any act of negligence of default of the master, marines, pilot or the servant of the carrier in the navigation or in the management of the vessel, the merchant will indemnify the carrier against all loss or liability to the other or non-carrying vessel or her owner insofar as such loss or liability represents loss of or damage to or any claim whatsoever of the owner of the said goods paid or payable by the carrying vessel or her owner as part of his claim against the carrying vessel or carrier. The foregoing provisions shall also apply where the owner operator or those in charge of any vessels or objects other than or in addition to the colliding vessels or objects are at fault in respect of a collision or contract.

 

	
21.  

	
Miscellaneous

 

	
21.1  

	
The waiver by the Company of a breach or default of any of the provisions set out in this Schedule D-1 shall not be construed as a waiver of any succeeding breach of the same or other provisions herein nor shall any delay or omission on the part of the Company to exercise or 

 

  

D-12

  

 

avail itself of any right power or privilege that it has or may have hereunder operate as a waiver of any breach or default by the Customer.

 

	
21.2  

	
The rights and remedies conferred on the Company under this Schedule D-1 shall be cumulative and shall be in addition to and without prejudice to any rights or remedies otherwise available (whether at law or in equity) to the Company.

 

	
21.3  

	
The defenses and limits of liability provided for by this Schedule D-1 shall apply in any action against the Company whether such action be founded in contract or tort or in whatsoever form.

 

	
21.4  

	
If any Clause or sub-clause in this Schedule D-1 shall be held to be illegal or unenforceable, in whole or in part, under any enactment or rule of law, such clause or sub-clause shall to that extent be deemed not to form part of this Schedule D-1 but the validity and enforceability of the remainder of this Schedule D-1 shall not be affected.

 

	
21.5  

	
Warehousing Fees shall begin to accrue upon delivery of the Goods to the Company in accordance with the terms hereof and shall be paid in full.  The Customer shall not be entitled to assert any credit set-off or counterclaim against the Company in order to justify withholding payment of any such Warehousing Fees in whole or in part.

 

 

 

 

D-13

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