Document:

Exhibit 4.1
EXECUTION
COPY

 

DEPOSITARY
TRUST AGREEMENT

ETF
SECURITIES USA LLC,

as
Sponsor

and

THE
BANK OF NEW YORK MELLON,

as
Trustee

	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 

Depositary
Trust Agreement

ETFS
Precious Metals Basket Trust

	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 

Dated
as of October 18, 2010

TABLE
OF CONTENTS

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	
 Article I. DEFINITIONS AND RULES OF
 CONSTRUCTION

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1.1

 	
 Definitions

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 1.2

 	
 Rules of Construction

 	
  

 	
 6

 
	
  

 	
  

 	
  

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

 	
  

 	
 6

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 2.1

 	
 Creation and Declaration of Trust;
 Business of the Trust

 	
  

 	
 6

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 2.2

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

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 2.3

 	
 Deposit of Bullion

 	
  

 	
 8

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 2.4

 	
 Delivery of Shares

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 2.5

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

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 2.6

 	
 Surrender of Shares and Withdrawal
 of Trust Property

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 2.7

 	
 Limitations on Delivery,
 Registration of Transfer and Surrender of Shares

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 2.8

 	
 Lost Certificates, Etc.

 	
  

 	
 12

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 2.9

 	
 Cancellation and Destruction of
 Surrendered Certificates

 	
  

 	
 12

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 2.10

 	
 Splits and Reverse Splits of Shares

 	
  

 	
 12

 
	
  

 	
  

 	
  

 
	
 Article III. CERTAIN OBLIGATIONS OF
 REGISTERED OWNERS OF SHARES

 	
  

 	
 13

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 3.1

 	
 Liability of Registered Owner for
 Taxes and Other Governmental Charges

 	
  

 	
 13

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 3.2

 	
 Warranties on Deposit of Bullion

 	
  

 	
 13

 
	
  

 	
  

 	
  

 
	
 Article IV. ADMINISTRATION OF THE
 TRUST

 	
  

 	
 13

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 4.1

 	
 Evaluation of Bullion

 	
  

 	
 13

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 4.2

 	
 Responsibility of the Trustee for
 Evaluations

 	
  

 	
 14

 

i

	
  

 	
  

 	
  

 	
  

 
	
 Section
 4.3

 	
 Trust Evaluation

 	
  

 	
 14

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 4.4

 	
 Cash Distributions

 	
  

 	
 15

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 4.5

 	
 Other Distributions

 	
  

 	
 15

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 4.6

 	
 Fixing of Record Date

 	
  

 	
 15

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 4.7

 	
 Payment of Expenses; Bullion Sales

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 4.8

 	
 Statements and Reports

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 4.9

 	
 Further Provisions for Bullion
 Sales

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 4.10

 	
 Counsel

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 4.11

 	
 Grantor Trust

 	
  

 	
 18

 
	
  

 	
  

 	
  

 
	
 Article V. THE TRUSTEE AND THE
 SPONSOR

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 5.1

 	
 Maintenance of Office and Transfer
 Books by the Trustee

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 5.2

 	
 Prevention or Delay in Performance
 by the Sponsor or the Trustee

 	
  

 	
 19

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 5.3

 	
 Obligations of the Sponsor and the
 Trustee

 	
  

 	
 19

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 5.4

 	
 Resignation or Removal of the
 Trustee; Appointment of Successor Trustee

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 5.5

 	
 The Custodian

 	
  

 	
 24

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 5.6

 	
 Indemnification

 	
  

 	
 26

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 5.7

 	
 Charges of Trustee

 	
  

 	
 27

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 5.8

 	
 Charges of Sponsor

 	
  

 	
 27

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 5.9

 	
 Retention of Trust Documents

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 5.10

 	
 Federal Securities Law Filings

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 5.11

 	
 Prospectus Delivery

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 5.12

 	
 Discretionary Actions by Trustee;
 Consultation

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 5.13

 	
 Dissolution of the Sponsor Not to
 Terminate Trust

 	
  

 	
 29

 
	
  

 	
  

 	
  

 
	
 Article VI. AMENDMENT AND
 TERMINATION

 	
  

 	
 29

 

ii

	
  

 	
  

 	
  

 	
  

 
	
 Section
 6.1

 	
 Amendment

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 6.2

 	
 Termination

 	
  

 	
 30

 
	
  

 	
  

 	
  

 
	
 Article VII. MISCELLANEOUS

 	
  

 	
 32

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 7.1

 	
 Counterparts

 	
  

 	
 32

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 7.2

 	
 Third-Party Beneficiaries

 	
  

 	
 32

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 7.3

 	
 Severability

 	
  

 	
 32

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 7.4

 	
 Certain Matters Relating to
 Beneficial Owners

 	
  

 	
 32

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 7.5

 	
 Notices

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 7.6

 	
 Agent for Service; Submission to
 Jurisdiction

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 7.7

 	
 Governing Law

 	
  

 	
 35

 

iii

DEPOSITARY TRUST
AGREEMENT 

          THIS
DEPOSITARY TRUST AGREEMENT dated as of October 18, 2010, between ETF SECURITIES
USA LLC, a Delaware limited liability company, as sponsor, and THE BANK OF NEW
YORK MELLON, a New York banking corporation, as trustee.

W
I T N E S S E T H:

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

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

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

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

ARTICLE
I.

DEFINITIONS AND RULES OF CONSTRUCTION

          Section
1.1 Definitions.

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

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

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

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

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

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

1

          “Basket
Bullion Amount” is the amount of Gold, Silver, Platinum and Palladium that must
be deposited for issuance of one Basket or that is deliverable upon Surrender
of one Basket. The Basket Bullion Amount will be determined as provided in
Section 2.3(b) and shall always be in accordance with the Bullion Ratio.

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

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

          “Bullion”
means Gold, Silver, Platinum or Palladium, or any combination thereof, as
applicable.

          “Bullion
Ratio” means that ratio of Gold, Silver, Platinum and Palladium held in the
initial Basket of Shares, such that for every 1,500 Ounces of Gold there are
55,000 Ounces of Silver, 200 Ounces of Platinum and 300 Ounces of Palladium.

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

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

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

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

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

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

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

          “Delivery”
means (a) when used with respect to Bullion, obtaining an acknowledgement from
the Custodian of a credit of Bullion on an Unallocated Basis to the account of
the Person entitled to that delivery and (b) when used with respect to Shares,
one or more book-entry 

2

transfers of those Shares
to an account or accounts at the Depository designated by the Person entitled
to such delivery for further credit as specified by that Person

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

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

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

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

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

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

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

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

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

          “Initial
Zurich Sub-Custodian” means UBS AG, as the initial Zurich Sub-Custodian under
the Trust Allocated Account Agreement.

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

          “LBMA”
means the London Bullion Market Association.

          “London
Fix” means the price of an ounce of Silver as set by the three market members
of the LBMA at approximately 12:00 noon, London time, on each working day. 

          “London
PM Fix” means, as applicable, the afternoon session of the twice daily fix of
the price of an ounce of (i) Gold which starts at 3:00 PM London, England time
and is performed in London by the five members of the London gold fix, (ii)
Platinum which starts at 2:00 PM London, England time and is performed in
London by the four members of the London platinum fix, or (iii) Palladium which
starts at 2:00 PM London, England time and is performed in London by the four
members of the London palladium fix.

3

          “LPPM”
means the London Platinum and Palladium Market.

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

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

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

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

          “Ounce”
means one troy ounce, equal to 31.103 grams (1.0971428 ounces avoirdupois),
with a minimum fineness of 999.5 parts per 1,000 Platinum or Palladium, 999.0
parts per 1,000 Silver, or 995.0 parts per 1,000 Gold, as applicable.

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

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

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

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

          “Purchase
Order” is defined in Section 2.3.

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

          “Redemption
Order” is defined in Section 2.6.

4

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

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

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

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

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

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

          “Trust”
means the ETFS Precious Metals Basket Trust, the trust entity created by this
Agreement.

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

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

          “Trust
Unallocated Account” shall mean the loco London account or the loco Zurich
account maintained for the Trust by the Initial Custodian pursuant to the Trust
Unallocated Account Agreement, or another account maintained for the Trust by a
successor Custodian on an Unallocated Basis, as the case may be.

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

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

          “Trust
Property” means the Bullion that the Custodian credits to the Trust Allocated
Account and the Trust Unallocated Account in accordance with the Custody
Agreements, all other property held by the Custodian for the account of the
Trust and any cash or other property 

5

that is received by the Trustee
in respect thereof or which is otherwise being held by or for it under this
Agreement.

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

          “Zurich
Sub-Custodian” means any firm, including the Initial Zurich Sub-Custodian,
selected by the Custodian to hold Platinum and Palladium on behalf of the
Custodian in such firm’s Zurich vault premises on a segregated basis in the
manner provided for in the Trust Allocated Account Agreement.

          Section
1.2 Rules of Construction.

          Unless
the context otherwise requires:

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

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

                              (iii) “or” is not exclusive;

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

                              (v) “including” means including
without limitation;

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

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

ARTICLE
II.

CREATION AND DECLARATION OF TRUSTS; 

FORM OF CERTIFICATES; DEPOSIT OF BULLION; 

DELIVERY, REGISTRATION OF TRANSFER AND SURRENDER OF SHARES

          Section
2.1 Creation and Declaration
of Trust; Business of the Trust.

                    (a) The Trustee acknowledges that it has
received confirmation from the Custodian that the Custodian has received an
initial deposit of Bullion from Goldman Sachs & Co., the initial purchaser
of the first Basket of Shares, and has credited such deposit to the Trust 

6

Allocated Account and
Trust Unallocated Account. The Trustee declares that the initial deposit and
all other Trust Property shall be owned by the Trust and the Trustee as trustee
thereof for the benefit of the Registered Owners for the purposes of, and
subject to and limited by the terms and conditions set forth in, this
Agreement. The trust created by this Agreement shall be known as the “ETFS
Precious Metals Basket Trust”.

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

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

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

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

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

	
  

 	
  

 	
  

 
	
  

 	
 UNLESS
 THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
 DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE AGENT
 AUTHORIZED BY THE ISSUER FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
 AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
 SUCH OTHER NAME AS IS

 	
  

 

7

	
  

 	
  

 	
  

 
	
  

 	
 REQUESTED
 BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
 CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
 OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY
 OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE
 & CO., HAS AN INTEREST HEREIN.

 	
  

 

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

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

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

          Section
2.3 Deposit of Bullion.

                    (a) After the initial deposit of Bullion
in the Trust, the issuance and Delivery of Shares will take place only in
integral numbers of Baskets and in compliance with the provisions of this
Agreement, as supplemented by the Procedures, to the extent those Procedures
are consistent with this Agreement. Authorized Participants wishing to acquire
from the Trustee one or more Baskets must place an order with the Trustee (a
“Purchase Order”) no later than 3:59:59 p.m. (New York time) on any Business
Day. Purchase Orders received by the Trustee

8

prior to the Order Cutoff
Time on a Business Day on which the Benchmark Price is announced will have that
Business Day as the Order Date. Purchase Orders received by the Trustee on or
after the Order Cutoff Time on a Business Day, or on a Business Day on which
the Benchmark Price is not announced, will have as their Order Date the next
Business Day on which the Benchmark Price is announced. As consideration for
each Basket acquired, Authorized Participants must deposit with the Custodian,
from an account of the Authorized Participant maintained by the Custodian, or,
if otherwise expressly permitted by the Procedures, other LBMA- and LPPM-member
custodian identified by the Authorized Participant to the Custodian and the
Trustee, the Basket Bullion Amount determined by the Trustee on the Order Date
of the corresponding Purchase Order. Bullion must be Delivered to the Custodian
by credit to the Trust Unallocated Account only.

                    (b) The Trustee shall determine the Basket
Bullion Amount for each Business Day, and the Trustee’s determination of the
Basket Bullion Amount and resolution of questions concerning the composition of
such Basket Bullion Amount shall be final and binding on all persons interested
in the Trust. The initial “Basket Bullion Amount” is 1,500 Ounces of Gold,
55,000 Ounces of Silver, 200 Ounces of Platinum and 300 Ounces of Palladium.
After the initial deposit, the “Basket Bullion Amount” for each Business Day
shall be an amount of Gold, Silver, Platinum and Palladium equal to the result
obtained by subtracting the number of Ounces of Gold, Silver, Platinum and
Palladium, in such ratio as to ensure the Bullion of the Trust is held in the
Bullion Ratio, constituting the unpaid expense accrual from the total Ounces of
Gold, Silver, Platinum and Palladium in the Trust and then dividing by the
number of Baskets outstanding. Fractions of an Ounce of Gold, Silver, Platinum
or Palladium included in the Basket Bullion Amount smaller than 0.001 Ounce shall
be disregarded. The Sponsor intends to publish, or may designate other persons
to publish, for each Business Day, the Basket Bullion Amount.

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

                    (d) All deposited Bullion shall be owned
by the Trust and held for the Trust by the Custodian. Pursuant to the
Unallocated Account Agreement, the Custodian agrees to use reasonable efforts
to minimize the amount of Bullion held for the Trust on an Unallocated Basis at
all times and the Custodian must allocate ownership of Gold or Silver bars or
ingots or Platinum or Palladium plates or ingots to the Trust such that no more
than 430 Ounces of Gold, 1,100 Ounces of Silver, 192 Ounces of Platinum and 192
Ounces of Palladium are held on an Unallocated Basis for the Trust at the end
of each business day of the Custodian. Cash and any assets of the Trust other
than Bullion shall be held by the Trustee at such place and in such manner as
the Trustee shall determine.

          Section
2.4 Delivery of Shares.

          Upon
receipt by the Trustee of a Purchase Order and the other documents required as
above specified, if any, and a confirmation from the Custodian that the Basket
Bullion Amount has been Delivered to the Custodian for each Basket of Shares
requested in such Purchase Order and the Custodian is holding that Bullion for
the account of the Trust, the Trustee, subject to the terms and conditions of
this Agreement and the Procedures, shall Deliver to the Depositor the 

9

number of Baskets of
Shares issuable in respect of such deposit as requested in the corresponding
Purchase Order, but only upon payment to the Trustee of the fees and expenses
of the Trustee as provided in Section 5.7 and of all taxes and governmental
charges and fees payable in connection with such deposit, the transfer of the
Bullion and the issuance and Delivery of the Shares.

           Section 2.5 Registration and Registration of Transfer of Shares;
 Combination and Split-up of Certificates.

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

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

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

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

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

          Section
2.6 Surrender of Shares and
Withdrawal of Trust Property.

                    (a) Upon Surrender of any integral number
of Baskets for the purpose of withdrawal of the amount of Trust Property
represented thereby, and upon payment of the fee of the Trustee in connection
with the Surrender of Shares as provided in Section 5.7 and payment of all
taxes and charges payable in connection with such Surrender and withdrawal of
Trust Property, and subject to the terms and conditions of this Agreement, the
Procedures and the practices of the Depository, an Authorized Participant
acting on authority of the Registered Owner of those Shares will be entitled to
Delivery, in accordance with the provisions of this 

10

Agreement, as supplemented
by any procedures attached to an applicable Authorized Participant Agreement,
to the extent those procedures are consistent with this Agreement, of the
amount of Trust Property at the time represented by such Baskets, including the
Basket Bullion Amounts corresponding to such Baskets on the applicable Order
Date (determined as provided below). Authorized Participants wishing to redeem
one or more Baskets must place an order with the Trustee (a “Redemption Order”)
no later than 3:59:59 p.m. (New York time) on any Business Day. Redemption
Orders received by the Trustee prior to the Order Cutoff Time on a Business Day
on which the Benchmark Price is announced will have that Business Day as the
Order Date. Redemption Orders received by the Trustee on or after the Order
Cutoff Time on any Business Day, or on a Business Day on which the Benchmark
Price is not announced, will have as their Order Date the next Business Day on
which the Benchmark Price is announced. Bullion will be Delivered by the Custodian
only by credit to an account of the Authorized Participant maintained by the
Custodian or, if otherwise expressly permitted by the Procedures, other LBMA-
and LPPM-member custodian identified by the Authorized Participant to the
Custodian and the Trustee on an Unallocated Basis. The Authorized Participant
shall bear all risk of any loss from the time the Bullion is paid from the
Trust Unallocated Account to the Authorized Participant and neither the Trustee
nor the Trust shall have any liability for any such loss.

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

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

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

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

                    (a) As a condition precedent to the
Delivery, registration of transfer, split-up, combination or Surrender of any
Shares or withdrawal of any Trust Property, the Trustee or Registrar may
require payment from the Depositor or the Authorized Participant Surrendering
the Shares of a sum sufficient to reimburse it for any tax or other
governmental charges and any 

11

stock transfer or
registration fee with respect thereto (including any such tax or charge and fee
with respect to any securities being withdrawn) and payment of any applicable
fees as herein provided, may require the production of proof satisfactory to it
as to the identity and genuineness of any signature and may also require
compliance with any regulations the Trustee may establish consistent with the
provisions of this Agreement, including, without limitation, this Section 2.7.

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

          Section
2.8 Lost Certificates, Etc.

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

          Section
2.9 Cancellation and
Destruction of Surrendered Certificates.

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

          Section
2.10 Splits and Reverse Splits
of Shares.

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

          If
so directed by the Sponsor, the Trustee shall not distribute any fraction of a
Share in connection with a split or reverse split of the Shares. The Trustee
may sell the aggregated fractions of Shares that would otherwise be distributed
in a split or reverse split of the Shares or the amount of Trust Property that
would be represented by those Shares and distribute the net proceeds of those
Shares or that Trust Property to the Record Owners entitled to them.

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

12

ARTICLE
III.

CERTAIN OBLIGATIONS OF REGISTERED OWNERS OF SHARES

          Section
3.1 Liability of Registered
Owner for Taxes and Other Governmental Charges.

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

          Section
3.2 Warranties on Deposit of
Bullion.

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

ARTICLE
IV.

ADMINISTRATION OF THE TRUST

          Section
4.1 Evaluation of Bullion.

          As
promptly as practicable after 4:00 p.m. (New York time), on each Business Day,
the Trustee shall determine the value of the Bullion held or receivable by the Trust
on the basis of the Benchmark Price for each metal for that day. If no
Benchmark Price for Gold, Silver, Platinum or Palladium is announced on a
Business Day, the Trustee shall determine the value of such Gold, Silver,
Platinum or Palladium held or receivable by the Trust for that day on the basis
of the most recently announced Benchmark Price for such metal
prior to the evaluation time. However, if the Sponsor determines that the price
specified in the two preceding sentences is inappropriate as a basis for
evaluation, it shall identify an alternative basis for evaluation to be
employed by the Trustee. Bullion deliverable under a Purchase Order shall be
included in the evaluation beginning on the Order Date. Bullion deliverable
under a Redemption Order shall not be included in the evaluation on and after
the Order Date. Neither the Trustee nor the Sponsor shall be liable to any
Person for the determination that the most recently announced Benchmark 

13

Price is not appropriate as a basis for evaluation of the Bullion held or receivable
by the Trust or for any determination as to the alternative basis for
evaluation, provided that such determination is made in good faith.

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

          Section
4.2 Responsibility of the
Trustee for Evaluations.

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

          Section
4.3 Trust Evaluation.

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

          Adjusted
Net Asset Value, Net Asset Value and Net Asset Value per Share shall be
computed in accordance with generally accepted accounting principles in the
United States. Any estimate of the expenses and liabilities of the Trust for
purposes of the computations required by this Section made by the Trustee in
good faith shall be conclusive upon all Persons interested in the Trust, and no
revision or correction in any computation made under this Agreement will be
required by reason of any difference in amounts estimated from those actually
paid.

14

          Section
4.4 Cash Distributions.

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

          Section
4.5 Other Distributions.

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

          Section
4.6 Fixing of Record Date.

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

15

          Section
4.7 Payment of Expenses;
Bullion Sales.

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

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

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

                              (iii) taxes and other governmental charges;

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

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

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

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

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

16

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

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

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

          Section
4.8 Statements and Reports.

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

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

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

          Section
4.9 Further Provisions for
Bullion Sales.

          In
addition to selling Bullion in accordance with Section 4.7, the Trustee shall
sell Gold, Silver, Platinum and Palladium, in such ratio as to ensure that the
Bullion of the Trust, if any, is held in the Bullion Ratio after the completion
of such sale, whenever any one or more of the following conditions exists:

17

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

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

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

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

          Section
4.10 Counsel.

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

          Section
4.11 Grantor Trust.

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

ARTICLE
V.

THE TRUSTEE AND THE SPONSOR

          Section
5.1 Maintenance of Office and
Transfer Books by the Trustee.

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

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

18

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

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

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

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

          Section
5.3 Obligations of the Sponsor
and the Trustee.

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

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

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

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

19

                              (ii) The Sponsor is authorized to negotiate
the terms of the Authorized Participant Agreement to be entered into with each
Authorized Participant and shall have no liability for any loss or damage
incurred by the Trust resulting from any such agreement negotiated in good
faith. The Trustee shall have no liability with respect to the negotiation of
the terms of any Authorized Participant Agreement or the form of any Authorized
Participant Agreement (other than the Trustee’s due execution, delivery and
performance thereof). The terms of an Authorized Participant Agreement shall
not adversely affect the duties, rights and responsibilities of the Trustee
unless the Trustee expressly consents thereto, which consent shall be evidenced
by the Trustee’s execution and delivery of such Authorized Participant
Agreement.

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

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

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

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

                              (iii) If at any time the Trustee is served
with any judicial or administrative order, judgment, decree, writ or other form
of judicial or administrative process 

20

that in any way affects
the Trust or its property (including but not limited to orders of attachment or
garnishment or other forms of levies or injunctions or stays relating to the
transfer of any assets of the Trust), the Trustee is authorized to comply
therewith in any manner that it or legal counsel of its own choosing deems
appropriate; however, the Trustee to the extent practicable will inform the
Sponsor of such order, judgment, decree, writ or other form of judicial or
administrative process that in any way affects the Trust and consult in good faith
with the Sponsor as to the course of action by the Trustee. If the Trustee
complies with any such judicial or administrative order, judgment, decree, writ
or other form of judicial or administrative process, the Trustee shall not be
liable to any of the parties hereto or to any other person or entity even
though such order, judgment, decree, writ or process may be subsequently
modified or vacated or otherwise determined to have been without legal force or
effect.

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

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

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

21

                              (vii) The Trustee shall not be responsible
in any respect for the form, execution, validity, value, collectability or
genuineness of documents, instruments or securities deposited with or delivered
to or held by it under this Agreement, or for any description therein, or for
the identity, authority or rights of persons executing or delivering or
purporting to execute or deliver any such document, instrument or security.

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

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

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

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

22

                              (xii) In no event shall the Trustee be
personally liable for any taxes or other governmental charges imposed upon or
in respect of the Bullion or its custody, moneys or other assets from time to
time held hereunder, or on the income therefrom or the sale or proceeds of sale
thereof, or upon it as Trustee hereunder or upon or in respect of the Trust or
the Shares, which it may be required to pay under any present or future law of
the United States of America or of any other taxing authority having
jurisdiction in the premises. For all such taxes and charges and for any
expenses, including counsel’s fees, which the Trustee may sustain or incur with
respect to such taxes or charges, the Trustee shall be reimbursed and
indemnified out of the assets of the Trust and the payment of such amounts
shall be secured by a lien on the Trust. This paragraph shall survive notwithstanding
any termination of this Agreement and the Trust or the resignation or removal
of the Trustee.

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

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

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

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

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

                    (b) The Sponsor may remove the Trustee in
its discretion by written notice delivered to the Trustee in the manner
provided in Section 7.5 at least 90 days prior to the fifth 

23

anniversary of the date
of this Agreement or, thereafter, by written notice delivered to the Trustee at
least 90 days prior to the last day of any subsequent three-year period.

                    (c) If at any time the Trustee

                              (i) ceases to be a Qualified Bank,

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

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

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

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

          Section
5.5 The Custodian.

                    (a) The Trustee is hereby directed to
enter into the Trust Allocated Account Agreement and the Trust Unallocated
Account Agreement with the Initial Custodian. The Initial Custodian will be
subject to the directions of the Trustee as provided in such Custody
Agreements, and will be responsible solely to it and to Beneficial Owners to
the extent UK law 

24

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

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

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

25

          Section
5.6 Indemnification.

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

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

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

26

          Section
5.7 Charges of Trustee.

                    (a) Each Depositor, and each person
surrendering Shares for the purpose of withdrawing Trust Property, shall pay to
the Trustee a fee of $500 per transaction for the Delivery of Shares pursuant
to Section 2.4 and the Surrender of Baskets of Shares pursuant to Section 2.6
or 6.2 (or such other fee as the Trustee, with the prior written consent of the
Sponsor, may from time to time announce).

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

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

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

          Section
5.8 Charges of Sponsor.

                    
(a) The Sponsor is entitled to
receive from the Trust, chargeable as an expense of the Trust, a fee for
services that will accrue daily and be paid monthly in arrears in the manner
provided in Section 4.7(d) at an annualized rate of 0.60% of Adjusted Net Asset
Value. The Sponsor may, at its sole discretion and from time to time, waive all
or a portion of its fee payable under this Section 5.8(a) for such periods of
time as shall be specified in the Sponsor’s written notice of such fee waiver
to the Trustee. The Sponsor is under no obligation to waiver its fees
hereunder, and any such waiver shall create no obligation to waive fees during
any period not covered by the applicable waiver. Any fee waiver by the Sponsor
shall not operate to reduce 

27

Sponsor’s obligations
hereunder, including, but not limited to, the Sponsor’s obligations under
Section 5.3(g).

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

          Section
5.9 Retention of Trust
Documents.

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

          Section
5.10 Federal Securities Law
Filings.

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

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

28

                    (c) The policies and procedures comprising
the Trust’s initial Internal Control Over Financial Reporting have been adopted
as of the date of this Agreement and copies thereof have been delivered to the
appropriate officers of the Sponsor and the Trustee. Amendments to such initial
Internal Control Over Financial Reporting may be proposed from time to time by
the Sponsor, but such amendments may not be adopted in connection with the
preparation of the Trust’s financial statements without the Trustee’s consent
(which consent will not be unreasonably withheld or delayed).

          Section
5.11 Prospectus Delivery.

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

          Section
5.12 Discretionary Actions by
Trustee; Consultation.

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

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

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

          Section
5.13 Dissolution of the
Sponsor Not to Terminate Trust.

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

ARTICLE
VI.

AMENDMENT AND TERMINATION

          Section
6.1 Amendment.

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

29

of such amendment is
given to the Registered Owners. Amendments pursuant to Sections 2.6(c) or (d)
shall not require notice pursuant to the preceding sentence. Every Registered
Owner and Beneficial Owner, at the time any amendment so becomes effective,
shall be deemed, by continuing to hold any Shares or an interest therein, to
consent and agree to such amendment and to be bound by this Agreement as
amended thereby. In no event shall any amendment impair the right of the
Registered Owner of Shares to Surrender Baskets of Shares and receive therefor
the amount of Trust Property represented thereby, except in order to comply
with mandatory provisions of applicable law.

          Section
6.2 Termination.

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

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

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

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

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

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

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

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

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

30

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

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

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

31

ARTICLE
VII.

MISCELLANEOUS

          Section
7.1 Counterparts.

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

          Section
7.2 Third-Party Beneficiaries.

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

          Section
7.3 Severability.

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

          Section
7.4 Certain Matters Relating
to Beneficial Owners.

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

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

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

                    (d) No Beneficial Owner shall have any
right to vote or in any manner otherwise to control the operation and
management of the Trust, or the obligations of the parties hereto. Nothing set
forth in this Agreement shall be construed so as to constitute the Beneficial 

32

Owners from time to time
as partners or members of an association; nor shall any Beneficial Owner ever
be liable to any third person by reason of any action taken by the parties to
this Agreement, or for any other cause whatsoever.

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

          Section
7.5 Notices.

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

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

To the Trustee:

	
  

 	
  

 
	
  

 	
 THE BANK OF NEW YORK MELLON

 
	
  

 	
 2 Hanson Place

 
	
  

 	
 Brooklyn, New York 11217

 
	
  

 	
 Attention: Donald Guire

 
	
  

 	
 Telephone: 718-315-4927

 
	
  

 	
 Facsimile: 718-315-4850

 

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

To the Sponsor:

	
  

 	
  

 
	
  

 	
 ETF SECURITIES USA LLC

 
	
  

 	
 Ordnance House

 
	
  

 	
 31 Pier Road

 
	
  

 	
 St. Helier, Jersey JE48PW

 
	
  

 	
 Channel Islands

 
	
  

 	
 Telephone: 011 44 207 448-4330

 
	
  

 	
 Attention: President

 

          with
a copy to:

	
  

 	
  

 
	
  

 	
 Katten Muchin Rosenman LLP

 
	
  

 	
 575 Madison Avenue

 
	
  

 	
 New York, New York 10022

 
	
  

 	
 Attention: Peter J. Shea, Esq.

 

33

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

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

          Section
7.6 Agent for Service;
Submission to Jurisdiction.

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

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

34

          Section
7.7 Governing Law.

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

35

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

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 ETF SECURITIES USA LLC

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:     /s/ Graham Tuckwell

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name: Graham
 Tuckwell

 
	
  

 	
  

 	
 Title: President
 & Chief Executive Officer

 
	
  

 	
  

 	
  

 
	
 WITNESSED:

 	
  

 	
 WITNESSED:

 
	
  

 	
  

 	
  

 
	
 By:     /s/ Christopher
 Foulds

 	
  

 	
 By:     /s/ Robert Dawson

 
	

  

 	
  

 	

  

 
	
 Name: Christopher
 Foulds

 	
  

 	
 Name: Robert Dawson

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 THE BANK OF NEW YORK MELLON,

 
	
  

 	
  

 	
 as Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 By:     /s/ Andrew Pfeifer

 
	
  

 	
  

 	

  

 
	
  

 	
  

 	
 Name: Andrew Pfeifer

 
	
  

 	
  

 	
 Title: Vice President

 

 [Signature Page to ETFS Precious Metals Basket Trust
Depositary Trust Agreement]

 [Depositary
Trust Agreement acknowledgment, Trustee]

	
  

 	
  

 
	
 STATE OF NEW YORK

 	
 )

 
	
  

 	
 ) ss.:

 
	
 COUNTY OF  NEW
 YORK

 	
 )

 

On
the 13th day of October in the year 2010 before me, the undersigned, personally
appeared Andrew Pfeifer, personally known to me or proved to me on the basis of
satisfactory evidence to be the individual whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his
capacity, and that by his signature on the instrument, the individual, or the
person upon behalf of which the individual acted, executed the instrument.

	
  

 	
  

 	
  

 
	
  

 	
      /s/
 Steven F. Lappert

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Notary Public

 

(Notarial
Seal)

EXHIBIT
A

[Form of
Certificate]

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

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

A-1

ETFS
PHYSICAL PM BASKET SHARES
ISSUED
BY
ETFS
PRECIOUS METALS BASKET TRUST
REPRESENTING
FRACTIONAL
INTERESTS IN DEPOSITED GOLD, SILVER, PLATINUM,
PALLADIUM AND ANY OTHER TRUST
PROPERTY

THE
BANK OF NEW YORK MELLON, as Trustee

	
  

 	
  

 	
  

 
	
  

 	
 No.

 	
 * Shares

 
	
  

 	
  

 	
  

 
	
  

 	
 CUSIP: 26922W 10 9

 	
  

 

          THE
BANK OF NEW YORK MELLON, as Trustee (hereinafter called the Trustee), hereby
certifies that CEDE & CO., as nominee of The Depository Trust Company, or
registered assigns, is the owner of * Shares issued by ETFS Precious Metals
Basket Trust, each representing a fractional undivided interest in the net
assets of the Trust, as provided in the Agreement referred to below. At the
time of delivery of the Agreement, each 50,000 Shares represented an interest
in 1,500 Ounces of Gold, 55,000 Ounces of Silver, 200 Ounces of Platinum and
300 Ounces of Palladium that are deposited under the Agreement and held by the
Custodian referred to in the Agreement. The amount of Gold, Silver, Platinum
and Palladium in which each 50,000 Shares represents an interest will decline
over time as provided in the Agreement. The Trustee’s Corporate Trust Office is
located at a different address than its principal executive office. Its
Corporate Trust Office is located at 2 Hanson Place, Brooklyn, New York 11217,
and its principal executive office is located at One Wall Street, New York, New
York 10286.

          This
Certificate is issued upon the terms and conditions set forth in the Depositary
Trust Agreement dated as of October 18, 2010 (the “Agreement”) between ETF
Securities USA LLC (herein called the Sponsor), and the Trustee. By becoming a
Registered Owner or Beneficial Owner, or by depositing Bullion, a Person is
bound by all the terms and conditions of the Agreement. The Agreement sets
forth the rights of Depositors and Registered Owners and the rights and duties
of the Trustee and the Sponsor. Copies of the Agreement are on file at the
Trustee’s Corporate Trust Office in New York City.

	
  

 	
  

 	
  

 
	

 

 	
  

 
	
  

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

 

A-2

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

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

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Dated: 

 	
  

 	
  

 	
 THE BANK OF NEW YORK MELLON,

 
	
  

 	

 

 	
  

 	
 as Trustee

 
	
  

 	
  

 	

  

 
	
  

 	
  

 	
 By: 

 	
  

 
	
  

 	
  

 	
  

 	

 

 

THE
TRUSTEE’S CORPORATE TRUST OFFICE ADDRESS IS

2 HANSON PLACE, BROOKLYN, NEW YORK 11217

A-3Exhibit 4.2

AUTHORIZED PARTICIPANT AGREEMENT

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

R E C I T A L S

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

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

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

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

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

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

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

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

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

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

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

	
  

 	
  

 
	
  

 	
 (i) If to
 the Trustee: 

 
	
  

 	
  

 
	
  

 	
 The Bank of
 New York Mellon 

 
	
  

 	
 2 Hanson
 Place — Floor 9th 

 
	
  

 	
 Brooklyn, NY
 11217 

 
	
  

 	
 Attn: Jarvis
 Joseph 

 
	
  

 	
 Telephone:
 (718) 315-7500 

 
	
  

 	
 Facsimile:
 (732) 667-9478

 
	
  

 	
 E-Mail: jarvis.joseph@bnymellon.com 

 
	
  

 	
  

 
	
  

 	
 (ii) If to
 the Sponsor:

 
	
  

 	
  

 
	
  

 	
 ETF Securities USA LLC 

 
	
  

 	
 c/o ETF
 Securities Limited 

 
	
  

 	
 Ordnance
 House

 
	
  

 	
 31 Pier Road

 
	
  

 	
 Jersey

 
	
  

 	
 JE4 8PW

 

2

	
  

 	
  

 
	
  

 	
 Channel
 Islands

 
	
  

 	
 Attn: Legal
 and Compliance 

 
	
  

 	
 Telephone:
 +44 1543 825 200

 
	
  

 	
 Facsimile:
 [to be provided]

 
	
  

 	
 E-Mail:
 legal.compliance@etfsl.com 

 
	
  

 	
  

 
	
  

 	
 (iii) If to
 the Authorized Participant: 

 
	
  

 	
  

 
	
  

 	
 [AUTHORIZED
 PARTICIPANT]

 
	
  

 	
 Attn:

 
	
  

 	
 [AP’S
 ADDRESS]

 
	
  

 	
 Telephone:

 
	
  

 	
 Facsimile:

 
	
  

 	
 Telex:

 

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

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

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

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

3

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

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

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

[Signatures
Follow on Next Page]

4

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

	
  

 	
  

 	
  

 
	
 THE BANK OF NEW YORK MELLON,
 in its capacity as 

 
	
 Trustee of
 the Trusts listed on Schedule A hereto

 
	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
 Name: 

 
	
 Title: 

 
	
 Date: 

 
	
  

 	
  

 
	
 ETF SECURITIES USA LLC,
 in its capacity as 

 
	
 Sponsor of
 the Trusts listed on Schedule A hereto

 
	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
 Name: 

 
	
 Title: 

 
	
 Date: 

 
	
  

 	
  

 
	
  [AUTHORIZED PARTICIPANT] 

 
	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
 Name: 

 
	
 Title: 

 
	
 Date: 

 

5

SCHEDULE A – APPLICABLE TRUSTS

	
  

 	
  

 
	
 •

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

 
	
  

 	
  

 
	
 •

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

 
	
  

 	
  

 
	
 •

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

 
	
  

 	
  

 
	
 •

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

 
	
  

 	
  

 
	
 •

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

 
	
  

 	
  

 
	
 •

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

 
	
  

 	
  

 
	
 •

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

 

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

6

DELIVERY
LOCATIONS, BASKET SIZES

AND BULLION OUNCES PER SHARE

Description of Delivery and Basket Sizes:

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Delivery
 of Bullion

 	
  

 	
 Shares
 Per Basket

 	
  

 	
 Oz.
 per Share at Inception

 
	
  

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	
 ETFS Physical Silver
 Shares

 	
  

 	
 Loco-London

 	
  

 	
 100,000

 	
  

 	
 1.0
 (Silver)

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ETFS Physical Swiss Gold
 Shares

 	
  

 	
 Loco-Zurich/London

 	
  

 	
 50,000

 	
  

 	
 0.1
 (Gold)

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ETFS Physical Platinum
 Shares

 	
  

 	
 Loco-Zurich/London

 	
  

 	
 50,000

 	
  

 	
 0.1
 (Platinum)

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ETFS Physical Palladium
 Shares

 	
  

 	
 Loco-Zurich/London

 	
  

 	
 50,000

 	
  

 	
 0.1
 (Palladium)

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ETFS Physical PM Basket
 Shares

 	
  

 	
 Loco-London 

 	
  

 	
 50,000

 	
  

 	
 0.03
 (Gold) & 

 1.1 (Silver);

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Loco-Zurich/London

 	
  

 	
  

 	
  

 	
 0.004
 (Platinum) & 0.006(Palladium)

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ETFS Physical WM Basket
 Shares

 	
  

 	
 Loco-London 

 	
  

 	
 50,000

 	
  

 	
 1.0
 (Silver);

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Loco-Zurich/London

 	
  

 	
  

 	
  

 	
 0.01
 (Platinum) &

 0.008 (Palladium)

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ETFS Physical Asian Gold
 Shares

 	
  

 	
 Loco-London/Singapore

 	
  

 	
 50,000

 	
  

 	
 0.1
 (Gold)

 

7

SCHEDULE 1- CREATION AND REDEMPTION
PROCEDURES

8

TABLE OF CONTENTS - SCHEDULE 1

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	

 

 
	
 ARTICLE
 I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 	
  

 	
  

 
	
 Section 1.01

 	
 Definitions

 	
  

 	
 S1-2

 
	
 Section 1.02

 	
 Interpretation

 	
  

 	
 S1-6

 
	
  

 	
  

 	
  

 
	
 ARTICLE
 II CREATION PROCEDURES

 	
  

 	
  

 
	
 Section 2.01

 	
 Initial
 Creation of Shares

 	
  

 	
 S1-7

 
	
 Section 2.02

 	
 Subsequent
 Creation of Shares

 	
  

 	
 S1-7

 
	
  

 	
  

 	
  

 
	
 ARTICLE
 III REDEMPTION PROCEDURES

 	
  

 	
  

 
	
 Section 3.01

 	
 Redemption
 of Shares

 	
  

 	
 S1-10

 
	
  

 	
  

 	
  

 
	
 ANNEX I TO
 CREATION AND REDEMPTION PROCEDURES

 	
  

 	
  

 
	
 Creation/Redemption Order Form

 	
  

 	
 S1-14

 
	
  

 	
  

 	
  

 
	
 ANNEX II TO
 CREATION AND REDEMPTION PROCEDURES

 	
  

 	
  

 
	
 Order Entry System Terms and Conditions

 	
  

 	
 S1-17

 

S1-1

SECOND
AMENDED AND RESTATED

CREATION AND REDEMPTION PROCEDURES

Adopted by the Sponsor and Trustee (each as
defined below) as of September 27, 2010

ARTICLE I

DEFINITIONS AND OTHER PROVISIONS OF GENERAL
APPLICATION

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

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

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

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

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

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

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

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

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

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

S1-2

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

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

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

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

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

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

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

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

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

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

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

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

S1-3

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

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

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

“FINRA”
means the Financial Industry Regulatory Authority.

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

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

“LBMA”
shall mean the London Bullion Market Association. 

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

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

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

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

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

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

S1-4

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

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

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

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

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

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

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

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

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

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

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

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

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

S1-5

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

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

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

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

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

          Section
1.02. Interpretation. In these Procedures: 

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

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

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

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

S1-6

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

ARTICLE II

CREATION PROCEDURES

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

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

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

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

	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

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

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

          d. As soon
as reasonably practicable following receipt of a properly completed Purchase
Order but not later than 5:30 p.m. (New York time) on the Order Date for such
Purchase Order, the Trustee shall send to the Authorized Participant (with copy
to the 

S1-7

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

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

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

          g. On the
third Business Day following the Order Date corresponding to a Purchase Order,
or on such earlier date and time as the Trustee in its absolute discretion may
agree with

S1-8

the Authorized Participant, the Trustee shall issue the aggregate
number of Shares corresponding to the Baskets ordered by the Authorized
Participant and Deliver them, by credit to the account at DTC which the Authorized
Participant shall have identified for such purpose in its Purchase Order,
provided that, by 9:00 a.m. (New York time) on the date such issuance and
Delivery is to take place: 

	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

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

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

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

S1-9

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

ARTICLE III

REDEMPTION PROCEDURES

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

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

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

	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

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

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

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

S1-10

	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

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

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

	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 unallocated
 Silver loco London;

 
	
  

 	
 •

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

 
	
  

 	
 •

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

 
	
  

 	
 •

 	
 unallocated
 Gold loco Singapore (for the ETFS Asian Gold Trust only);

 
	
  

 	
 •

 	
 unallocated
 Platinum loco Zurich;

 
	
  

 	
 •

 	
 unallocated
 Platinum loco London;

 
	
  

 	
 •

 	
 unallocated
 Palladium loco Zurich; and/or 

 
	
  

 	
 •

 	
 unallocated
 Palladium loco London

 

          (as
applicable to the specific Redemption Order); and 

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

	
  

 	
  

 	
  

 
	
  

 	
 •

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

 

          (as
applicable to the specific Redemption Order)

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

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

S1-11

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

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

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

[Signatures Follow on Next Page]

S1-12

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

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

	
  

 	
  

 	
  

 
	
 By:

 	
 /s/ Andrew Pfeifer

 	
  

 
	
  

 	

 

 	
  

 
	
 Name: Andrew
 Pfeifer 

 
	
 Title:   Vice
 President

 
	
  

 	
  

 	
  

 
	
 ETF
 SECURITIES USA LLC, in its capacity as Sponsor 

 
	
  

 	
  

 	
  

 
	
 By:

 	
 /s/ Graham Tuckwell

 	
  

 
	
  

 	

 

 	
  

 
	
 Name: Graham
 Tuckwell

 
	
 Title:    President and Chief Executive Officer

 

 [Second Amended and Restated Creation and Redemption Procedures
Signature Page]

S1-13

ANNEX I TO CREATION AND REDEMPTION PROCEDURES

THE BANK OF
NEW YORK MELLON, TRUSTEE

CREATION/REDEMPTION ORDER FORM

UNALLOCATED ORDERS ONLY

	
  

 	
  

 
	
 CONTACT INFORMATION FOR
 ORDER EXECUTION:

 
	
 Telephone order number:

 	
 (718) 315-7500

 
	
 Fax order number:

 	
 (732) 667-9478

 

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

I. TO BE
COMPLETED BY PARTICIPANT: 

	
  

 	
  

 	
  

 
	
 Name of Trust: 

 	
  

 	
  

 
	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Date:

 	
  

 	
  

 	
 Time:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Broker Name:

 	
  

 	
  

 	
 Authorized Participant
 Firm Name:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 DTC Participant Number:

 	
  

 	
  

 	
 Fax Number:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Telephone Number:

 	
  

 	
  

 	
 Symbol:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 

Type
of order (Check Creation or Redemption please) 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Creation:

 	
  

 	
  

 	
 Redemption:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 # of Baskets:

 	
  

 	
  

 	
 Number of Baskets written
 out:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Order #

 	
  

 	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	
  

 

Please
indicate Bullion clearing agent: 

For Silver
involving the ETFS Silver Trust only

HSBC   o

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

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 JP Morgan

 	
 o

 	
 Other (please specify
 clearing agent): 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 
	
 Account number for Bullion
 delivery:

 	
  

 	
  

 
	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (With respect to Silver
 only):

 	
 loco London

 	
 o

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

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

 	
 loco London

 	
 o

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

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

 	
 loco London

 	
 o

 	
 loco Zurich

 	
 o

 
	
  

 	
  

 	
  

 	
  

 	
  

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

 	
 loco London

 	
 o

 	
 loco Singapore

 	
 o

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (With respect to Platinum
 only):

 	
 loco London

 	
 o

 	
 loco Zurich

 	
 o

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 (With respect to Palladium
 only):

 	
 loco London

 	
 o

 	
 loco Zurich

 	
 o

 

This
Purchase or Redemption Order is subject to the terms and conditions of the Trust
Agreement of the Shares of the Trust as currently in effect and the Authorized
Participant Agreement between the Authorized Participant, the Trustee and the
Sponsor named therein. All representations and warranties of the Authorized
Participant set forth in such Trust Agreement (including, if this is a 

S1-14

Purchase
Order, the representations in Section 3.2 of the Trust Agreement) and in the
Authorized Participant Agreement are incorporated herein by reference and are
true and accurate as of the date hereof.

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

	
  

 	
  

 	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 	
  

 	

 

 
	
  

 	
  

 	
 Authorized Representative’s
 Signature

 	
  

 	
             Date

 

S1-15

II. TO BE
COMPLETED BY TRUSTEE: 

This
certifies that the above order has been: 

___________________________Accepted
by the Trustee 

___________________________Declined-Reason:_____________________________________________________

Final
# of Ounces: 

	
  

 	
  

 
	
 

 	
  (Gold)

 
	
  

 	
  

 
	
 

 	
  (Silver)

 
	
  

 	
  

 
	
 

 	
  (Platinum)

 
	
  

 	
  

 
	
 

 	
  (Palladium)

 

	
  

 	
  

 	
  

 
	
 Final # of Shares:

 	
  

 	
  

 
	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 
	
 Final Cash Due to BNYM

 	
  

 	
  

 
	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 	
  

 	

 

 
	
 Date

 	
  

 	
 Time

 	
  

 	
 Authorized Signature of
 Trustee

 

S1-16

ANNEX II TO CREATION AND REDEMPTION PROCEDURES

ORDER ENTRY SYSTEM TERMS AND CONDITIONS

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

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

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

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

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

S1-17

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

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

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

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

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

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

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

S1-18

SCHEDULE
2- STANDARD TERMS

TABLE
OF CONTENTS - SCHEDULE 2

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	
 ARTICLE
 I ORDERS FOR PURCHASE AND REDEMPTION

 	
  

 	
  

 
	
 Section 1.01.

 	
 Authorization
 to Purchase and Redeem Baskets

 	
  

 	
 S2-1

 
	
 Section 1.02.

 	
 Procedures
 for Orders

 	
  

 	
 S2-1

 
	
 Section 1.03.

 	
 Consent
 to Recording

 	
  

 	
 S2-1

 
	
 Section 1.04.

 	
 Irrevocability

 	
  

 	
 S2-1

 
	
 Section 1.05.

 	
 Costs
 and Expenses

 	
  

 	
 S2-2

 
	
 Section 1.06.

 	
 Delivery
 of Property to the Trust

 	
  

 	
 S2-2

 
	
 Section 1.07.

 	
 Title
 to Deposit Property and Shares Surrendered for Redemption

 	
  

 	
 S2-2

 
	
 Section 1.08.

 	
 Certain
 Payments or Distributions

 	
  

 	
 S2-3

 
	
 Section 1.09.

 	
 Ambiguous
 Instructions

 	
  

 	
 S2-3

 
	
  

 	
  

 	
  

 
	
 ARTICLE
 II AUTHORIZED REPRESENTATIVES

 	
  

 	
  

 
	
 Section 2.01.

 	
 Certification

 	
  

 	
 S2-4

 
	
 Section 2.02.

 	
 PIN
 Numbers

 	
  

 	
 S2-4

 
	
 Section 2.03.

 	
 Termination
 of Authority

 	
  

 	
 S2-5

 
	
 Section 2.04.

 	
 Verification

 	
  

 	
 S2-5

 
	
  

 	
  

 	
  

 
	
 ARTICLE
 III STATUS OF THE AUTHORIZED PARTICIPANT

 	
  

 	
  

 
	
 Section 3.01.

 	
 Clearing
 Status

 	
  

 	
 S2-5

 
	
 Section 3.02.

 	
 Broker-Dealer
 Status

 	
  

 	
 S2-5

 
	
 Section 3.03.

 	
 Foreign
 Status

 	
  

 	
 S2-6

 
	
 Section 3.04.

 	
 Compliance
 with Certain Laws

 	
  

 	
 S2-6

 
	
 Section 3.05.

 	
 Authorized
 Participant Status

 	
  

 	
 S2-6

 
	
  

 	
  

 	
  

 
	
 ARTICLE
 IV ROLE OF AUTHORIZED PARTICIPANT

 	
  

 	
  

 
	
 Section 4.01.

 	
 No Agency

 	
  

 	
 S2-6

 
	
 Section 4.02.

 	
 Rights
 and Obligations of DTC Participant

 	
  

 	
 S2-6

 
	
 Section 4.03.

 	
 Beneficial
 Owner Communications

 	
  

 	
 S2-6

 
	
 Section 4.04.

 	
 Authorized
 Participant Customer Information

 	
  

 	
 S2-7

 
	
  

 	
  

 	
  

 
	
 ARTICLE
 V MARKETING MATERIALS AND REPRESENTATIONS AND WARRANTIES

 	
  

 	
  

 
	
 Section 5.01.

 	
 Authorized
 Participant’s
 Representation

 	
  

 	
 S2-7

 
	
 Section 5.02.

 	
 Prospectus

 	
  

 	
 S2-8

 
	
  

 	
  

 	
  

 
	
 ARTICLE
 VI INDEMNIFICATION; LIMITATION OF LIABILITY

 	
  

 	
  

 
	
 Section 6.01.

 	
 Indemnification

 	
  

 	
 S2-8

 
	
  

 	
  

 	
  

 
	
 ARTICLE
 VII MISCELLANEOUS

 	
  

 	
  

 
	
 Section 7.01.

 	
 Commencement
 of Trading

 	
  

 	
 S2-10

 

i

          FIRST
AMENDED AND RESTATED STANDARD TERMS FOR AUTHORIZED PARTICIPANT AGREEMENTS
(the “Standard
Terms”) agreed to as of September 27, 2010 by and between The Bank
of New York Mellon, a New York banking corporation (the “Trustee”), and ETF Securities
USA LLC, a Delaware limited liability company (the “Sponsor”). 

ARTICLE I

ORDERS FOR PURCHASE AND REDEMPTION

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

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

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

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

          Section
1.05. Costs and Expenses. The Authorized Participant shall be
responsible for the expenses and costs incurred by the Trust that can be
directly attributable to Orders submitted by the Authorized Participant other
than ordinary course expenses and costs which are reimbursed

S2-1

through payment of the fee contemplated in Section 2.02(g) of the
Procedures. The Trustee or the Sponsor shall provide the Authorized Participant
with reasonably detailed information relating to such expenses and costs upon
request by the Authorized Participant.

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

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

	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

S2-2

	
  

 	
  

 
	
  

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

 

          Section
1.08. Certain Payments or Distributions. 

	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

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

S2-3

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

ARTICLE II

AUTHORIZED REPRESENTATIVES

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

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

S2-4

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

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

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

ARTICLE III

STATUS OF THE AUTHORIZED PARTICIPANT

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

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

S2-5

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

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

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

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

ARTICLE IV

ROLE OF AUTHORIZED PARTICIPANT

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

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

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

S2-6

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

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

ARTICLE V

MARKETING MATERIALS AND REPRESENTATIONS AND
WARRANTIES

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

S2-7

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

ARTICLE VI

INDEMNIFICATION; LIMITATION OF LIABILITY

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

	
  

 	
  

 
	
  

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

 

S2-8

	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

S2-9

	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

ARTICLE VII

MISCELLANEOUS

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

[Signatures
Follow on Next Page]

S2-10

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

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

	
  

 	
  

 	
  

 	
  

 
	
 By:

 	
 /s/ Andrew
 Pfeifer

 	
  

 
	
  

 	

 

 	

 

 	
  

 
	
 Name:

 	
 Andrew
 Pfeifer

 	
  

 
	
 Title: 

 	
 Vice
 President

 	
  

 

ETF SECURITIES USA
LLC, in its capacity as Sponsor 

	
  

 	
  

 	
  

 	
  

 
	
 By:

 	
 /s/ Graham
 Tuckwell

 	
  

 
	
  

 	

 

 	

 

 	
  

 
	
 Name:

 	
 Graham
 Tuckwell

 	
  

 
	
 Title: 

 	
 President
 and Chief Executive Officer

 

 [First Amended and Restated Standard Terms Signature Page]

S2-11

SCHEDULE 3-A: AUTHORIZED REPRESENTATIVES OF
THE AUTHORIZED PARTICIPANT

Certificate of Authorized Representatives of the Authorized Participant

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

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Name:

 	
  

 	
  

 	
 Name:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
 Title:

 	
  

 	
  

 	
 Title:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Signature:

 	
  

 	
  

 	
 Signature:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
 Phone:

 	
  

 	
  

 	
 Phone:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
 Email:

 	
  

 	
  

 	
 Email:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Name:

 	
  

 	
  

 	
 Name:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
 Title:

 	
  

 	
  

 	
 Title:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Signature:

 	
  

 	
  

 	
 Signature:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
 Phone:

 	
  

 	
  

 	
 Phone:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
 Email:

 	
  

 	
  

 	
 Email:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Name:

 	
  

 	
  

 	
 Name:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
 Title:

 	
  

 	
  

 	
 Title:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Signature:

 	
  

 	
  

 	
 Signature:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
 Phone:

 	
  

 	
  

 	
 Phone:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
 Email:

 	
  

 	
  

 	
 Email:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 

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

	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
 Name:

 	
  

 
	
 Title:

 	
  

 
	
 Date: 

 	
  

 

S3-1

SCHEDULE
3-B: ADDENDUM TO CERTIFICATE OF AUTHORIZED 

REPRESENTATIVES OF THE AUTHORIZED PARTICIPANT

 [On AP’s
Firm Letterhead]

 [DATE]

Attn: Jarvis Joseph 

The Bank of New York Mellon 

2 Hanson Place — Floor 9th 

Brooklyn, NY 11217

New York

	
  

 	
  

 
	
 Re:

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

 
	

 

 

Ladies and Gentlemen:

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

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Name:

 	
  

 	
  

 	
 Name:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
 Title:

 	
  

 	
  

 	
 Title:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Signature:

 	
  

 	
  

 	
 Signature:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
 Phone:

 	
  

 	
  

 	
 Phone:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
 Email:

 	
  

 	
  

 	
 Email:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Name:

 	
  

 	
  

 	
 Name:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
 Title:

 	
  

 	
  

 	
 Title:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Signature:

 	
  

 	
  

 	
 Signature:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
 Phone:

 	
  

 	
  

 	
 Phone:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 
	
 Email:

 	
  

 	
  

 	
 Email:

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	

 

 	
  

 

          Please
provide PIN numbers for those listed above.

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

	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
 Name:

 	
  

 
	
 Title:

 	
  

 
	
 Date: 

 	
  

 

S3-2

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