Standard Terms for Authorized Participant Agreements



 Exhibit 4.2 
 iShares Silver Trust 
 Standard Terms for Authorized Participant Agreements 
 Dated as of April 21, 2006 







 TABLE OF CONTENTS 
  


					
	 	    	 	  	Page
	ARTICLE I    ORDERS FOR PURCHASE AND REDEMPTION	  	1
			
	 Section 1.01.
	    	Authorization to Purchase and Redeem Baskets	  	1
			
	 Section 1.02.
	    	Procedures for Orders	  	1
			
	 Section 1.03.
	    	Consent to Recording	  	1
			
	 Section 1.04.
	    	Irrevocability	  	1
			
	 Section 1.05.
	    	Costs and Expenses	  	1
			
	 Section 1.06.
	    	Delivery of Property to the Trust	  	1
			
	 Section 1.07.
	    	Title to Deposit Property and iShares Surrendered for Redemption	  	1
			
	 Section 1.08.
	    	Certain Payments or Distributions	  	2
		
	ARTICLE II    AUTHORIZED REPRESENTATIVES	  	2
			
	 Section 2.01.
	    	Certification	  	2
			
	 Section 2.02.
	    	PIN Numbers	  	2
			
	 Section 2.03.
	    	Termination of Authority	  	3
			
	 Section 2.04.
	    	Verification	  	3
		
	ARTICLE III    STATUS OF THE AUTHORIZED PARTICIPANT	  	3
			
	 Section 3.01.
	    	Clearing Status	  	3
			
	 Section 3.02.
	    	Broker-Dealer Status	  	3
			
	 Section 3.03.
	    	Foreign Status	  	4
			
	 Section 3.04.
	    	Compliance with Certain Laws	  	4
			
	 Section 3.05.
	    	Authorized Participant Status	  	4
		
	ARTICLE IV    ROLE OF AUTHORIZED PARTICIPANT	  	4
			
	 Section 4.01.
	    	Independent Contractor	  	4
			
	 Section 4.02.
	    	Rights and Obligations of DTC Participant	  	4
			
	 Section 4.03.
	    	Beneficial Owner Communications	  	4
		
	ARTICLE V    MARKETING MATERIALS AND REPRESENTATIONS	  	5
			
	 Section 5.01.
	    	Authorized Participant’s Representation	  	5
			
	 Section 5.02.
	    	Prospectus	  	5
		
	ARTICLE VI    INDEMNIFICATION; LIMITATION OF LIABILITY	  	6
			
	 Section 6.01.
	    	Indemnification	  	6

  

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 TABLE OF CONTENTS 
 (continued) 
  

					
	 	    	 	  	Page
	ARTICLE VII    MISCELLANEOUS	  	6
			
	 Section 7.01.
	    	Commencement of Trading	  	6
			
	 Section 7.02.
	    	Definitions	  	6

  

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 STANDARD TERMS FOR AUTHORIZED PARTICIPANT AGREEMENTS (the “Standard Terms”) agreed to as of
April 21, 2006 by and between The Bank of New York, a New York banking corporation, and Barclays Global Investors International Inc., a Delaware corporation. 
 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 iShares in compliance with the provisions of the Trust Agreement. 
 Section 1.02. Procedures for Orders. Each party hereto agrees to comply with the provisions of the Trust Agreement and the Procedures to the
extent applicable to it. 
 Section 1.03. Consent to Recording. The phone lines used by the Trustee, the Custodian or their
affiliated persons may be recorded, and the Authorized Participant hereby consents to the recording of all calls with any of those parties. 
 Section 1.04. Irrevocability. The Authorized Participant agrees on behalf of itself and any Authorized Participant Client that delivery to the Trustee of an Order shall be irrevocable; provided that each of the Trust and
the Sponsor reserves the right to reject any Order in compliance with the provisions of the Trust Agreement. 
 Section 1.05. Costs
and Expenses. The Authorized Participant shall be responsible for any and all expenses and costs incurred by the Trust in connection with any Orders. 
 Section 1.06. Delivery of Property to the Trust. The Authorized Participant understands and agrees that in the event Deposit Property is not transferred to the Trust by the time specified in the Purchase
Order and in compliance with the Procedures and the Trust Agreement, a Purchase 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. 
 Section 1.07. Title to Deposit Property and iShares Surrendered for Redemption. The Authorized
Participant represents and warrants to the Trustee that 
 a. in connection with each Purchase Order, the Authorized Participant will have
full power 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 subcustodian 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 full power and authority to surrender to the
Trustee for redemption the corresponding iShares, and upon such surrender the Trust will acquire good and unencumbered title to such iShares, 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 would preclude the delivery of such iShares on a
“regular way” basis. 
  

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 Section 1.08. Certain Payments or Distributions. 
 a. With respect to any Purchase Order, the Trust acknowledges and agrees to return to the Authorized Participant 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. 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 Trust 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. 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 iShares transferred to the Trust that, based on the valuation of such iShares at the time of transfer, should have been paid to
the Authorized Participant or such Authorized Participant Client. 
 ARTICLE II 
 AUTHORIZED REPRESENTATIVES 
 Section 2.01. Certification. Concurrently with
the execution of the Authorized Participant Agreement, and as requested from time to time by the Trustee but no less frequently than annually, the Authorized Participant shall deliver to the Trust a certificate signed by the Authorized
Participant’s Secretary or other duly authorized official setting forth the names, 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 Trust 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 Trust of a superseding certificate in a form approved by the Trust bearing a subsequent date, or (ii) termination of 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 

  

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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. The Authorized Participant agrees that, absent the Trustee’s fraud, willful misconduct or failure 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
the Authorized Participant provides notice to the Trustee of the termination or revocation of authority pursuant to Section 2.03. 
 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 immediate 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. The Authorized Participant agrees that the Trustee shall not be responsible 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, unless the following paragraph is applicable to it, 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 of the NASD. 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 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
iShares, and with the Constitution, By-Laws and Conduct Rules of the NASD applicable to its activities as an Authorized Participant, and that it will not offer or sell iShares in any state or jurisdiction where they may not lawfully be offered
and/or sold. 
  

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 Section 3.03. Foreign Status. If the Authorized Participant is offering and selling iShares
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 the NASD 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 (e.g., it will not offer or sell iShares of the Trust in any state or jurisdiction where they may not lawfully be offered and/or sold), to
comply with the full disclosure requirements of the 1933 Act and the regulations promulgated thereunder and to conduct its business in accordance with the spirit of the NASD Conduct Rules. 
 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 (“U.S.A. PATRIOT Act”), the Authorized Purchaser is in compliance with the anti-money laundering and related provisions of the U.S.A. PATRIOT Act.

 Section 3.05. Authorized Participant Status. 
 a. The Authorized Participant understands and acknowledges that the method by which Baskets of iShares will be created and traded may raise certain issues
under applicable securities laws. For example, because new Baskets of iShares 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. The Authorized
Participant understands and acknowledges that some activities on its part, depending on the circumstances, may result in its being deemed a participant in a distribution in a manner which could render it a statutory underwriter and subject it to the
prospectus delivery and liability provisions of the 1933 Act. 
 b. The Sponsor shall ensure that the Prospectus contains an accurate and
current listing of Authorized Participants. 
 ARTICLE IV 
 ROLE OF AUTHORIZED PARTICIPANT 
 Section 4.01. Independent Contractor. The Authorized
Participant acknowledges and agrees that for all purposes of the Authorized Participant Agreement, the Authorized Participant will be deemed to be an independent contractor, and 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 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) it is under legal obligation not to disclose, or (ii) it is confidential or proprietary in nature. 
 Section 4.02. Rights and Obligations of DTC Participant. In executing the Authorized Participant Agreement, the Authorized Participant agrees in connection with any purchase or redemption transactions in which it acts for an
Authorized Participant Client or for any other DTC Participant or indirect participant, or any other Beneficial Owner, that it shall extend to any such party all of the rights, and 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, subject to any limitations arising under federal or state securities laws relating to privacy or other obligations it may have to its customers, to assist the Trustee or the Sponsor in
determining the ownership level of each 

  

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beneficial owner relating to positions in iShares that the Authorized Participant may hold as record holder. In addition, the Authorized Participant agrees,
in accordance with applicable laws, rules and regulations, at the request of the Sponsor or the Trustee to forward to such beneficial owners written materials and communications received from the requesting party 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 to the Trust Agreement or applicable law or regulation, or that the Sponsor or the Trustee reasonably wishes to distribute, at its own expense, to such beneficial owners. 
 ARTICLE V 
 MARKETING MATERIALS AND REPRESENTATIONS 
 Section 5.01. Authorized Participant’s Representation. The Authorized Participant represents, warrants and agrees that it will not make,
or permit any of its representatives to make, any representations concerning iShares other than those contained in the Trust’s then current Prospectus or in any promotional materials or sales literature furnished to the Authorized Participant
by the Sponsor. The Authorized Participant agrees to provide each purchaser of iShares, whenever required by Rule 173 under the 1933 Act, a notice in compliance with the provisions of such Rule or a copy of the final Prospectus. 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 iShares (including, without limitation, promotional materials and sales literature, advertisements, press
releases, announcements, statements, posters, signs or other similar materials), 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 iShares are not redeemable units of
beneficial interest in the Trust. Notwithstanding the foregoing, the Authorized Participant may, without the written approval of the Sponsor, prepare and circulate in the regular course of its business reports, research or similar materials that
include information, opinions or recommendations relating to iShares (i) for public dissemination, provided that such reports, research or similar materials compare the relative merits and benefits of iShares with other products and do not
discuss iShares more prominently than such other products and (ii) for internal use by the Authorized Participant. Copies of the then current Prospectus of the Trust will be supplied by the Sponsor to the Authorized Participant in reasonable
quantities upon request. 
 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 notify the Authorized Participant when a revised, supplemented or amended Prospectus for the iShares
is available, and 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 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. 
  

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 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,
the Trustee, the Trust, the Custodian (which the parties agree is a third-party beneficiary under this Subsection 6.01(a)) their respective subsidiaries, Affiliates, 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 “Indemnified Party”) from and against any loss, liability, cost and expense (including attorneys’ fees) incurred by such Indemnified Party as
a result of (i) any breach by the Authorized Participant of any representations or warranties of the Authorized Participant (including under Section 3.2 of the Depositary Trust Agreement); (ii) any failure on the part of the
Authorized Participant to perform any of its obligations set forth in the Authorized Participant Agreement; (iii) any failure by the Authorized Participant to comply with applicable laws, including rules and regulations of self-regulatory
organizations, that apply to it; or (iv) actions of such Indemnified Party in reliance upon any instructions issued in accordance with the Procedures reasonably believed by such Indemnified Party to be genuine and to have been given by the
Authorized Participant. 
 b. The Authorized Participant shall not be liable to any 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 Indemnified Party. 
 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 Prospectus. 
 Section 7.02. Definitions. The capitalized terms used herein are defined as follows.

 a. “1933 Act” means the U.S. Securities Act of 1933, as amended. 
 b. “Affiliate” shall have the meaning given to it by Rule 501(b) under the 1933 Act. 
 c. “Authorized Participant Agreement” shall mean each Authorized Participant Agreement among the Authorized Participant, the Trustee and the
Sponsor into which these Standard Terms shall have been incorporated by reference. 
 d. “Authorized Participant” shall have the
meaning ascribed to it in the introductory paragraph of the Authorized Participant Agreement. 
 e. “Authorized Participant Client”
means any party on whose behalf the Authorized Participant acts in connection with an Order (whether a customer or otherwise). 
 f.
“Authorized Representative” shall have the meaning ascribed to it in Section 2.01 hereof. 
 g. “Basket” shall have
the meaning ascribed to it in the Recitals to the Authorized Participant Agreement. 
  

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 h. “Beneficial Owner” shall have the meaning given to it by Rule 16a-1(a)(2) of the Securities
Exchange Act of 1934. 
 i. “Business Day” shall mean each day the exchange on which the iShares trade is open for regular trading.

 j. “Custodian” shall have the meaning ascribed to it in the Procedures. 
 k. “Deposit Property” means property which, in compliance with the provisions of the Trust Agreement, must be transferred by the Authorized
Participant to the Trust in exchange for iShares. 
 l. “DTC” means The Depository Trust Company. 
 m. “Indemnified Party” shall have the meaning ascribed to it in Section 6.01.a hereof. 
 n. “iShares” means iShares issued by the Trust pursuant to the provisions of the Trust Agreement. 
 o. “NASD” means the National Association of Securities Dealers, Inc. 
 p. “Order” shall have the meaning ascribed to it in Section 1 of the Authorized Participant Agreement. 
 q. “Procedures” shall have the meaning ascribed to it in Section 1 of the Authorized Participant Agreement. 
 r. “Prospectus” means the Trust’s current prospectus included in its effective registration statement, as supplemented or amended from
time to time. 
 s. “Purchase Order” shall have the meaning ascribed to it in Section 1 of the Authorized Participant
Agreement. 
 t. “Redemption Order” shall have the meaning ascribed to it in Section 1 of the Authorized Participant
Agreement. 
 u. “Sponsor” shall have the meaning ascribed to it in the introductory paragraph of the Authorized Participant
Agreement. 
 v. “Trust” shall have the meaning ascribed to it in the introductory paragraph of the Authorized Participant
Agreement. 
 w. “Trust Agreement” shall have the meaning ascribed to it in the introductory paragraph of the Authorized
Participant Agreement. 
 x. “Trustee” shall have the meaning ascribed to it in the introductory paragraph of the Authorized
Participant Agreement. 
  

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

							
	 THE BANK OF NEW YORK, in its capacity as
 Trustee of the iShares Silver Trust,
	    		 	
				
	By:	 	 /S/ EDWARD MCGAWN
	    		 	
	Name:	 	Edward McGawn	    		 	
	Title: 	 	Managing Director	    		 	
			
	BARCLAYS GLOBAL INVESTORS
INTERNATIONAL INC., in its capacity as
Sponsor	    		 	
				
	By:	 	 /S/ LEE KRANEFUSS
	    	By:	 	 /S/ TONY KELLY

	Name:	 	Lee Kranefuss	    	Name:	 	Tony Kelly 
	Title:	 	Managing Director	    	Title:	 	Principal

  

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