Document:

Form of Depositary Trust Agreement

 Exhibit 4.1 
  

BARCLAYS GLOBAL INVESTORS INTERNATIONAL INC. 
 as Sponsor 
  
 and 
  
 THE BANK OF NEW YORK, 
 as Trustee 
  

 
 Depositary Trust Agreement 
  
 iShares Silver Trust 
  

  
 Dated as of [                    ], 2006 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page

	ARTICLE I	 	DEFINITIONS AND RULES OF CONSTRUCTION	  	3
			
	 Section 1.1.
	 	 Definitions
	  	3
			
	 Section 1.2.
	 	 Rules of Construction
	  	6
			
	ARTICLE II	 	CREATION AND DECLARATION OF TRUSTS; FORM OF CERTIFICATES; DEPOSIT OF SILVER; 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 Silver
	  	8
			
	 Section 2.4.
	 	 Delivery of Shares
	  	9
			
	 Section 2.5.
	 	 Registration and Registration of Transfer of Shares; Combination and Split-up of Certificates
	  	9
			
	 Section 2.6.
	 	 Surrender of Shares and Withdrawal of Trust Property
	  	9
			
	 Section 2.7.
	 	 Limitations on Delivery, Registration of Transfer and Surrender of Shares
	  	10
			
	 Section 2.8.
	 	 Lost Certificates, Etc.
	  	11
			
	 Section 2.9.
	 	 Cancellation and Destruction of Surrendered Certificates
	  	11
			
	 Section 2.10.
	 	 Splits and Reverse Splits of Shares
	  	11
			
	ARTICLE III	 	CERTAIN OBLIGATIONS OF REGISTERED OWNERS OF SHARES	  	11
			
	 Section 3.1.
	 	 Liability of Registered Owner for Taxes and Other Governmental Charges
	  	11
			
	 Section 3.2.
	 	 Warranties on Deposit of Silver
	  	11
			
	ARTICLE IV	 	ADMINISTRATION OF THE TRUST	  	12
			
	 Section 4.1.
	 	 Evaluation of Silver
	  	12
			
	 Section 4.2.
	 	 Responsibility of the Trustee for Evaluations
	  	12
			
	 Section 4.3.
	 	 Trust Evaluation
	  	12
			
	 Section 4.4.
	 	 Cash Distributions
	  	13
			
	 Section 4.5.
	 	 Other Distributions
	  	13
			
	 Section 4.6.
	 	 Fixing of Record Date
	  	13
			
	 Section 4.7.
	 	 Payment of Expenses; Silver Sales
	  	14
			
	 Section 4.8.
	 	 Statements and Reports
	  	14
			
	 Section 4.9.
	 	 Further Provisions for Silver Sales
	  	14
			
	 Section 4.10.
	 	 Counsel
	  	15
			
	 Section 4.11.
	 	 Grantor Trust
	  	15

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	 	 	  	Page

	 ARTICLE V
	 	THE TRUSTEE AND THE SPONSOR	  	15
			
	 Section 5.1.
	 	 Maintenance of Office and Transfer Books by the Trustee
	  	15
			
	 Section 5.2.
	 	 Prevention or Delay in Performance by the Sponsor or the Trustee
	  	16
			
	 Section 5.3.
	 	 Obligations of the Sponsor and the Trustee
	  	16
			
	 Section 5.4.
	 	 Resignation or Removal of the Trustee; Appointment of Successor Trustee
	  	17
			
	 Section 5.5.
	 	 The Custodian
	  	17
			
	 Section 5.6.
	 	 Indemnification
	  	18
			
	 Section 5.7.
	 	 Charges of Trustee
	  	20
			
	 Section 5.8.
	 	 Charges of Sponsor
	  	20
			
	 Section 5.9.
	 	 Retention of Trust Documents
	  	20
			
	 Section 5.10.
	 	 Federal Securities Law Filings
	  	20
			
	 Section 5.11.
	 	 Prospectus Delivery
	  	21
			
	 Section 5.12.
	 	 Discretionary Actions by Trustee; Consultation
	  	21
			
	 ARTICLE VI
	 	AMENDMENT AND TERMINATION	  	22
			
	 Section 6.1.
	 	 Amendment
	  	22
			
	 Section 6.2.
	 	 Termination
	  	22
			
	 ARTICLE VII
	 	MISCELLANEOUS	  	23
			
	 Section 7.1.
	 	 Counterparts
	  	23
			
	 Section 7.2.
	 	 Third-Party Beneficiaries
	  	23
			
	 Section 7.3.
	 	 Severability
	  	24
			
	 Section 7.4.
	 	 Registered Owners, Beneficial Owners and Depositors as Parties; Binding Effect
	  	24
			
	 Section 7.5.
	 	 Notices
	  	24
			
	 Section 7.6.
	 	 Agent for Service; Submission to Jurisdiction
	  	25
			
	 Section 7.7.
	 	 Governing Law
	  	25
			
	EXHIBIT A	 	 	  	A-1

  

 -ii- 

 DEPOSITARY TRUST AGREEMENT 
  
 THIS DEPOSITARY TRUST AGREEMENT dated as of [            ],
2006, between BARCLAYS GLOBAL INVESTORS INTERNATIONAL INC, a Delaware corporation, as sponsor, THE BANK OF NEW YORK, a New York banking corporation, as trustee, all Registered Owners and Beneficial Owners from time to time of iShares Silver Trust
Shares issued hereunder and all Depositors. 
  
 WITNESSETH: 
  
 WHEREAS the Sponsor desires to establish a trust, to be known as the “iShares Silver Trust”, pursuant to the laws of the State of New York; and 
  
 WHEREAS the Sponsor desires to establish the terms on which Silver (as herein defined) may be deposited in the trust and
provide for the creation of iShares Silver Trust 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
iShares Silver Trust 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. 
  
 “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. 
  
 “Basket Silver Amount” is the amount of Silver that must be deposited for issuance of one Basket or that is deliverable upon Surrender of one Basket. The Basket Silver Amount will be determined as provided in Section 2.3(b).

  

 3 

 “Benchmark Price” means, as of any day, (i) such day’s London’s Fix; or (ii) other
publicly available price as the Sponsor, in consultation with the Trustee, may determine fairly represents the commercial value of Silver held by the Trust. 
  
 “Beneficial Owner” means any Person owning a beneficial interest in any Shares. 
  
 “Business Day” means any day other than (i) a Saturday or Sunday or (ii) a day on which the Exchange is not open
for regular trading. 
  
 “Certificate” means a
certificate that is executed and delivered by the Trustee under this Agreement evidencing Shares. 
  
 “CFTC” means the Commodity Futures Trading Commission or any successor governmental agency in the United States. 
  
 “Commission” means the Securities and Exchange Commission of the
United States or any successor governmental agency in the United States. 
  
 “Corporate Trust Office” means the office of the Trustee at which its depositary receipt business is administered which, at the date of this Agreement, is located at 101 Barclay Street, New York, New York
10286. 
  
 “Custodian” means JPMorgan Chase Bank N.A.,
as agent of the Trust for the purposes of this Depositary Trust Agreement, and any substitute or additional Custodian appointed by the Trustee as provided in Section 5.5. 
  
 “Deliver” means (a) when used with respect to Silver, (i) physically delivering that Silver to, or making that
Silver available for collection by, the Person entitled to the delivery at the specified location, (ii) obtaining evidence that ownership of that Silver has been transferred to, and the Silver is being duly held by a custodian for the account of,
the Person entitled to that delivery or (iii) obtaining an acknowledgement from a custodian of a credit of Silver on an Unallocated Basis to the account of the Person entitled to that delivery and (b) when used with respect to Shares, either (i) one
or more book-entry transfers of those Shares to an account or accounts at DTC designated by the Person entitled to such delivery for further credit as specified by that Person or (ii) in the circumstances specified in Section 2.2(e), execution and
delivery at the Corporate Trust Office of the Trustee of one or more Certificates evidencing those Shares. 
  
 “Depositor” means any Authorized Participant that deposits Silver into the Trust, either for its own account or on behalf of another Person that
is the owner or beneficial owner of that Silver. 
  
 “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. 
  
 “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. 
  
 “Internal Control Over Financial Reporting” has the meaning ascribed to such term in Rule 13a-15(f) and 15(d)-15(f) adopted by the Commission under the Exchange Act. 
  

 4 

 “LBMA” means the London Bullion Market Association. 
  
 “London Fix” means the price of an ounce of Silver as set by three
market members of the LBMA at approximately 12:00 noon, London time, on each working day. 
  
 “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 a troy ounce, equal to 1.0971428 ounces avoirdupois, with a minimum fineness of 999.0 parts per thousand silver. 
  
 “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. 
  
 “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 securities depository as is then
acting with respect to the Shares; (ii) unless counsel to the Sponsor, the appointment of which is acceptable to the Trustee, determines that the following requirement is not necessary for the exception under Section 408(m) of the Internal Revenue
Code of 1986, as amended (the “Code”), to apply, is a banking institution as defined in Section 408(n) of the Code and (iii) had, as of the date of its most recent annual financial statements, an aggregate capital, surplus and undivided
profits of at least $150,000,000. 
  
 “Redemption Order”
is defined in Section 2.6. 
  
 “Registered Owner” means
the Person in whose name Shares are registered on the books of the Trustee maintained for that purpose. 
  
 “Registrar” means any bank or trust company that is appointed to register Shares and transfers of Shares as herein provided. 
  
 “Shares” means iShares Silver Trust 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. 
  

 5 

 “Sponsor” means Barclays Global Investors International Inc., a Delaware corporation, or its
successor. 
  
 “Surrender” means, when used with respect
to Shares, (a) one or more book-entry transfers of Shares to the DTC account of the Trustee or (b) surrender to the Trustee at its Corporate Trust Office of one or more Certificates evidencing Shares. 
  
 “Trust” means the iShares Silver Trust, the trust entity created by
this Agreement. 
  
 “Trustee” means The Bank of New
York, 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 Silver that is deposited under this Agreement and any cash or other property that is received by the Trustee in
respect of Trust Property and that is being held under this Agreement. 
  
 “Unallocated Basis” means that the Person in whose name Silver is so held is entitled to receive delivery of Silver standing to the credit of that Person’s account, but that Person has no ownership interest in any particular
Silver that the custodian maintaining that account owns or holds. 
  
 Section 1.2.
Rules of Construction. 
  
 Unless the context otherwise
requires: 
  
 (i) a term has the meaning assigned to it;

  
 (ii) an accounting term not otherwise defined has the meaning
assigned to it in accordance with generally accepted accounting principles as in effect in the United States; 
  
 (iii) “or” is not exclusive; 
  
 (iv) the words “herein”, “hereof”, “hereunder” and other words of similar import refer to this Agreement as a whole and not
to any particular Article, Section or other subdivision; 
  
 (v)
“including” means including without limitation; and 
  
 (vi) words in the singular include the plural and words in the plural include the singular. 
  
 ARTICLE II 
  
 CREATION AND DECLARATION OF TRUSTS; 
 FORM OF CERTIFICATES; DEPOSIT OF SILVER; 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 an initial deposit of Silver under and in accordance with this Agreement from Barclays Capital Inc. The
Trustee declares that it will hold that initial deposit and all other Trust Property as trustee 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 “iShares Silver Trust”. 
  

 6 

 (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 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 

  

 7 

 
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. 
  
 (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 the DTC Participants entitled thereto, with such additions, deletions and modifications to this Agreement and to the form of Certificate evidencing Shares as the Sponsor
and the Trustee may agree. 
  
 (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 Silver. 
  
 (a) After the initial deposit of
Silver 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 any procedures attached to an applicable Authorized Participant
Agreement, to the extent those procedures are consistent with this Agreement. Authorized Participants wishing to acquire from the Trustee one or more Baskets must place an order with the Trustee (a “Purchase Order”) no later than 3:59:59
p.m. (New York time) on any Business Day. Purchase Orders received by the Trustee prior to the Order Cutoff Time on a Business Day on which the Benchmark Price is announced will have that Business Day as the Order Date. Purchase Orders received by
the Trustee on or after the Order Cutoff Time on a Business Day, or on a Business Day on which the Benchmark Price is not announced, will have as their Order Date the next Business Day on which the Benchmark Price is announced. As consideration for
each Basket acquired, Authorized Participants must deposit with the Custodian, at the location designated by the Custodian, the Basket Silver Amount determined by the Trustee on the Order Date of the corresponding Purchase Order. Silver must be
Delivered to the Custodian in the form of Silver bars only, except that an amount of Silver not exceeding 1100 Ounces may be Delivered to the Custodian on an Unallocated Basis. 
  
 (b) The Trustee shall determine the Basket Silver Amount for each Business Day. The initial “Basket Silver Amount”
is 500,000 Ounces. After the initial deposit, the “Basket Silver Amount” shall be an amount of Silver equal to the result obtained by subtracting the daily expense accrual from the previous day’s total Ounces of Silver in the Trust
and then dividing by the number of Baskets outstanding. Fractions of an Ounce of Silver included in the Basket Silver Amount smaller than .001 Ounce shall be disregarded. The Sponsor intends to publish, or may designate other persons to publish, for
each Business Day, the Basket Silver Amount. 
  
 (c) If the Trust
Property includes money or any property other than Silver, no deposits of Silver will be accepted until after a record date for distribution of that money or property, or proceeds of that property, has passed. 
  

 8 

 (d) All deposited Silver shall be owned by the Trust and held for the Trust by the Custodian. The Trustee
shall require the Custodian to agree that the Custodian will use reasonable efforts to minimize the amount of Silver held for the Trust on an Unallocated Basis at all times and the Custodian must allocate ownership of silver bars to the Trust such
that no more than 1100 Ounces of Silver are held on an Unallocated Basis for the Trust at the end of each business day of the Custodian. Cash and any other assets of the Trust 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 any deposit in accordance with Section
2.3, together with a Purchase Order and the other documents required as above specified, if any, and a confirmation from the Custodian that the Silver Deposit Amount has been Delivered to the Custodian for each Basket of Shares and the Custodian is
holding that Silver for the account of the Trust, the Trustee, subject to the terms and conditions of this Agreement, shall Deliver to the Depositor the number of Baskets of Shares issuable in respect of such deposit as requested in the
corresponding Purchase Order, but only upon payment to the Trustee of the fees and expenses of the Trustee as provided in Section 5.7 and of all taxes and governmental charges and fees payable in connection with such deposit, the transfer of the
Silver 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. 
  
 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 

  

 9 

 
of this Agreement, an Authorized Participant acting on authority of the Registered Owner of those Shares will be entitled to Delivery, in accordance with the
provisions of this Agreement, as supplemented by any procedures attached to an applicable Authorized Participant Agreement, to the extent those procedures are consistent with this Agreement, of the amount of Trust Property at the time represented by
such Baskets, including the Basket Silver 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. Unless otherwise agreed to by the Custodian, Silver will be Delivered by the Custodian, at the location designated by the Custodian (or by a sub-custodian designated by the Custodian), in the form of Silver
bars only, except that an amount of Silver not exceeding 1100 Ounces may be Delivered by the Custodian on an Unallocated Basis. 
  
 (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, at the location
designated by the Custodian (or by a sub-custodian designated by the Custodian), to or to the order of the Surrendering Authorized Participant the amount of Silver 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 Silver other than at the location designated by the Custodian (or by a
sub-custodian designated by the Custodian) will be at the expense and risk of the Authorized Participant. The Trustee is not required to effect any physical movement of Silver from one custody location to another to meet any request by a
Surrendering Authorized Participant as to where Silver will be Delivered. 
  
 Section 2.7. Limitations on Delivery, Registration of Transfer and Surrender of Shares. 
  
 (a) As a condition precedent to the Delivery, registration of transfer, split-up, combination or Surrender of any Shares or withdrawal of any Trust
Property, the Trustee or Registrar may require payment from the Depositor or the Authorized Participant Surrendering the Shares of a sum sufficient to reimburse it for any tax or other governmental charges and any stock transfer or registration fee
with respect thereto (including any such tax or charge and fee with respect to any securities being withdrawn) and payment of any applicable fees as herein provided, may require the production of proof satisfactory to it as to the identity and
genuineness of any signature and may also require compliance with any regulations the Trustee may establish consistent with the provisions of this Agreement, including, without limitation, this Section 2.7. 
  
 (b) The Delivery of Shares against deposits of Silver 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 Silver is not reasonably
practicable. 
  

 10 

 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. 
  
 The Trustee is not required to 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 Silver Amount shall be adjusted as appropriate as of the open of business on the
Business Day following the record date for a split or reverse split of the Shares. 
  
 ARTICLE III 
  
 CERTAIN
OBLIGATIONS OF REGISTERED OWNERS OF SHARES 
  
 Section 3.1. Liability of
Registered Owner for Taxes and Other Governmental Charges. 
  
 If any tax or other governmental charge shall become payable by the Trustee with respect to any transfer or redemption of Shares, such tax or other governmental charge shall be payable by the Registered Owner of such Shares to the Trustee.
The Trustee shall refuse to effect any registration of transfer of such Shares or any withdrawal of Trust Property represented by such Shares until such payment is made, and may withhold any distributions, or may sell for the account of the
Registered Owner thereof Trust Property or Shares, and may apply such distributions or the proceeds of any such sale in payment of such tax or other governmental charge, and the Registered Owner of such Shares shall remain liable for any deficiency.
The Trustee shall distribute any net proceeds of a sale made under the preceding sentence that remain, after payment of the tax or other governmental charge, to the Registered Owners entitled thereto as in the case of a distribution in cash.

  
 Section 3.2. Warranties on Deposit of Silver. 
  
 Every Person depositing Silver under this Agreement shall be deemed thereby
to represent and warrant that the Silver meets the requirements to be Silver and contains the required number of Ounces, that the person making such deposit is duly authorized to do so and that at the time of delivery, the Silver 

  

 11 

 
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 Silver, Delivery or Surrender of Shares or termination of this Agreement. 
  
 ARTICLE IV 
  
 ADMINISTRATION OF THE TRUST 
  
 Section 4.1. Evaluation of Silver. 
  
 As
promptly as practicable after 4:00 p.m. (New York time), on each Business Day, the Trustee shall determine the value of the Silver held or receivable by the Trust on the basis of the Benchmark Price for that day. If no Benchmark Price is announced
on a Business Day, the Trustee shall determine the value of the Silver held or receivable by the Trust for that day on the basis of the most recently announced Benchmark Price. However, if the Trustee and the Sponsor determine that the price
specified in the two preceding sentences is inappropriate as a basis for evaluation, they shall identify an alternative basis for evaluation to be employed by the Trustee. Silver deliverable under a Purchase Order shall be included in the evaluation
beginning on the Order Date. Silver deliverable under a Redemption Order shall not be included in the evaluation on and after the Order Date. Neither the Trustee nor the Sponsor shall be liable to any Person for the determination that the most
recently announced Benchmark Price is not appropriate as a basis for evaluation of the Silver 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 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 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
Silver 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 computed by reference to the value of the Trust or its assets shall
be calculated on the Adjusted Net Asset Value. 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 

  

 12 

 
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. 
  
 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 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 Silver 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. 
  
 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. 
  

 13 

 Section 4.7. Payment of Expenses; Silver 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; and 
  
 (v) indemnification of the Sponsor as provided in Section 5.6(d). 
  
 The Trustee shall, when directed by the Sponsor, and, in the absence of such
direction, may, in its discretion, sell Silver in such quantity and at such times, as may be necessary to permit payment of expenses under this Agreement. The Trustee is authorized to sell Silver at such times and in the smallest amounts required to
permit payment of expenses as they come due, it being the intention to avoid or minimize the Trust’s holdings of assets other than Silver. Neither the Trustee nor the Sponsor shall have any liability for loss or depreciation resulting from
sales of Silver so made. The Trustee shall not be liable or responsible in any way for depreciation or loss incurred by reason of any sale made pursuant to the Sponsor’s direction or otherwise in accordance with this Section. 
  
 (b) 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. 
  
 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”). 
  
 Section 4.9. Further Provisions for Silver Sales. 
  
 In addition to selling Silver in accordance with Section 4.7, the Trustee shall sell Silver whenever any one or more of the following conditions exists:

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

 14 

 (b) this Agreement has been terminated and the Trust Property is to be liquidated in accordance with
Section 6.2. 
  
 Unless otherwise directed by the Sponsor, when
selling Silver the Trustee shall endeavor to place orders with dealers (which may include the Custodian) through which it may reasonably expect to obtain a favorable price and good execution of orders. 
  
 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 Silver and the Trust, including any legal matters relating to the possible disposition or acquisition of any Silver. 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 Registered Owners within the meaning of Section 301.7701-4(c) under the Internal Revenue Code of 1986, as amended
(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 books for the registration of
Shares and registration of transfers of Shares which at all reasonable times shall be open for inspection by the Registered Owners. 
  
 (c) The Trustee may, and at the reasonable written request of the Sponsor shall, close the transfer books at any time or from time to time if such action
is deemed necessary or advisable in the reasonable judgment of the Trustee or the Sponsor. 
  
 (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. 
  

 15 

 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 negligence 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) 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 negligence or bad faith while it acted as Trustee. 
  
 (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. 
  

 16 

 (g) The Sponsor shall be responsible for all organizational expenses of the Trust, and for the following
administrative and marketing expenses of the Trust: the Trustee’s monthly fee, the Custodian’s fee, listing fees of the Exchange, registration fees charged by the Commission, printing and mailing costs, audit fees and expenses and legal
fees and expenses not in excess of $100,000 per year. 
  
 Section 5.4.
Resignation or Removal of the Trustee; Appointment of Successor Trustee. 
  
 (a) The Trustee may at any time resign as Trustee hereunder by written notice of its election so to do, delivered to the Sponsor, and such resignation shall take effect upon the appointment of a successor Trustee and
its acceptance of such appointment as hereinafter provided. 
  
 (b) The Sponsor may remove the Trustee in its discretion by written notice delivered to the Trustee in the manner provided in Section 7.5 at least 90 days prior to the fifth anniversary of the date of this Agreement or, thereafter, by
written notice delivered to the Trustee at least 90 days prior to the last day of any subsequent three-year period. 
  
 (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. 
  
 The Custodian will be subject at all times and in all respects to the directions of the Trustee and will be responsible solely to it. Any Custodian may
resign and be discharged from its duties by notice of such resignation delivered to the Trustee at least 60 days prior to the date on which such resignation is to become effective. If upon the effectiveness of such resignation there would be no
Custodian acting hereunder, the Trustee shall, promptly after receiving such notice, with the written approval of the Sponsor (which approval shall not be unreasonably withheld or delayed), appoint a substitute custodian or 

  

 17 

 
custodians, each of which shall thereafter be a Custodian hereunder. Whenever the Trustee in its discretion determines that it is in the best interest of the
Registered Owners to do so, it may with the written approval of the Sponsor (which approval shall not be unreasonably withheld or delayed), 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). Upon demand of
the Trustee any Custodian shall deliver such of the Silver held by it as are requested of it to any other Custodian or such substitute or additional custodian or custodians. Each such substitute or additional custodian shall deliver to the Trustee,
forthwith upon its appointment, an acceptance of such appointment satisfactory in form and substance to the Trustee. 
  
 Upon the appointment of any successor Trustee hereunder, each Custodian then acting hereunder shall forthwith become, without any further act or writing,
the agent hereunder of such successor Trustee and the appointment of such successor Trustee shall in no way impair the authority of each Custodian hereunder; but the successor Trustee so appointed shall, nevertheless, on the written request of any
Custodian, execute and deliver to such Custodian all such instruments as may be proper to give to such Custodian full and complete power and authority as agent hereunder of such successor Trustee. 
  
 Section 5.6. Indemnification. 
  
 (a) The Sponsor shall indemnify the Trustee, its directors, employees and
agents (the “Trustee Indemnified Persons”) against, and hold each of them harmless from, any loss, liability, cost, expense or judgment (including, but not limited to, the reasonable fees and expenses of counsel) (collectively
“Indemnified Amounts”) that is incurred by any of them and that arises out of or is related to (i) any offer or sale by the Trust of Baskets of Shares under this Agreement, (ii) acts performed or omitted pursuant to the provisions of this
Agreement, as the same may be amended, modified or supplemented from time to time, (A) by a Trustee Indemnified Person or (B) by the Sponsor or (iii) any filings with or submissions to the Commission in connection with or with respect to the Shares
(which by way of illustration and not by way of limitation, include any registration statement and any amendments or supplements thereto filed with the Commission or any periodic reports or updates that may be filed under the Securities Exchange Act
of 1934, as amended, or any failure to make any filings with or submissions to the Commission which are required to be made in connection with or with respect to the Shares), except that the Sponsor shall not have any obligations under this Section
5.6(a) to pay Indemnified Amounts incurred as a result of and attributable to (x) the negligence or bad faith of, or material breach of the terms of this Agreement by, the Trustee, (y) written information furnished in writing by the Trustee to the
Sponsor expressly for use in the registration statement, or any amendment thereto or periodic or other report, filed with the Commission relating to the Shares that is not materially altered by the Sponsor or (z) any misrepresentations or omissions
made by a Depositor (other than the Sponsor) in connection with such Depositor’s offer and sale of Shares. 
  
 (b) The Trustee shall indemnify the Sponsor, its directors, employees and agents against, and hold each of them harmless from, any Indemnified Amounts (i)
caused by the negligence or bad faith of the Trustee or (ii) arising out of any information furnished in writing to the Sponsor by the Trustee expressly for use in the registration statement, or any amendment thereto or periodic or other report,
filed with the Commission relating to the Shares that is not materially altered by the Sponsor. 
  
 (c) If the indemnification provided for in Section 5.6(a) or (b) is unavailable or insufficient to hold harmless the indemnified party under subsection
(a) or (b) above, then the indemnifying party shall contribute to the Indemnified Amounts referred to in subsection (a) or (b) above (i) in such proportion as is appropriate to reflect the relative benefits received by the Sponsor on the one hand
and the Trustee on the other hand from the offering of the Shares which are the subject of the action or (ii) if the allocation 

  

 18 

 
provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to
in clause (i) above but also the relative fault of the Sponsor on the one hand and the Trustee on the other hand in connection with the action, statement or omission which resulted in such Indemnified Amount as well as any other relevant equitable
considerations. The relative fault shall be determined by reference to, among other things, whether any untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact from which the action arises
relates to information supplied by the Sponsor or the Trustee and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission or the act or omission from which the
action arises. The amount of Indemnified Amounts referred to in the first sentence of this subsection (c) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or
defending any action or claim which is the subject of this subsection (c). 
  
 (d) The Sponsor and its shareholders, 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 incurred without (1) negligence, bad faith, willful misconduct or willful malfeasance on the part of such Sponsor Indemnified Party arising out of or in
connection with the performance of its obligations under this Agreement or any actions taken in accordance with the provisions of this 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(d) 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. 
  
 (e) If an action, proceeding
(including, but not limited to, any governmental investigation), claim or dispute (collectively, a “Proceeding”) in respect of which indemnity may be sought by either party is brought or asserted against the other party, the party seeking
indemnification (the “Indemnitee”) shall promptly (and in no event more than seven (7) days after receipt of notice of such Proceeding) notify the party obligated to provide such indemnification (the “Indemnitor”) of such
Proceeding. The failure of the Indemnitee to so notify the Indemnitor shall not impair the Indemnitee’s ability to seek indemnification from the Indemnitor (but only for costs, expenses and liabilities incurred after such notice) unless such
failure adversely affects the Indemnitor’s ability to adequately oppose or defend such Proceeding. Upon receipt of such notice from the Indemnitee, the Indemnitor shall be entitled to participate in such Proceeding and, to the extent that it
shall so desire and provided no conflict of interest exists as specified in clause (i) below and there are no other defenses available to Indemnitee as specified in clause (iii) below, to assume the defense thereof with counsel reasonably
satisfactory to the Indemnitee (in which case all attorney’s fees and expenses shall be borne by the Indemnitor and the Indemnitor shall in good faith defend the Indemnitee). The Indemnitee shall have the right to employ separate counsel in any
such Proceeding and to participate in the defense thereof, but, in such case, no fees and expenses of such counsel shall be borne by the Indemnitor unless such fees and expenses are otherwise required to be indemnified under Section 5.06(a), (b) or
(d), as applicable, and (i) there is such a conflict of interest between the Indemnitor and the Indemnitee as would preclude, in compliance with the ethical rules in effect in the jurisdiction in which the Proceeding was brought, one lawyer from
representing both parties simultaneously, (ii) the Indemnitor fails, within the earlier of (x) twenty (20) days following receipt of notice of the Proceeding from the Indemnitee or (y) seven (7) days prior to the date the first response or
appearance is required to be made in such Proceeding, to assume the defense of such Proceeding with 

  

 19 

 
counsel reasonably satisfactory to the Indemnitee or (iii) there are legal defenses available to Indemnitee that are different from or are in addition to
those available to the Indemnitor. No compromise or settlement of such Proceeding may be effected by either party without the other party’s consent unless (m) there is no finding or admission of any violation of law and no effect on any other
claims that may be made against such other party and (n) the sole relief provided is monetary damages that are paid in full by the party seeking the settlement. Neither party shall have any liability with respect to any compromise or settlement
effected without its consent, which shall not be unreasonably withheld. The Indemnitor shall have no obligation to indemnify and hold harmless the Indemnitee from any loss, expense or liability incurred by the Indemnitee as a result of a default
judgment entered against the Indemnitee unless such judgment was entered after the Indemnitor agreed, in writing, to assume the defense of such Proceeding. 
  
 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 $2,000 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 services and reimbursement for its out-of-pocket expenses in accordance with written agreements between the Sponsor and the Trustee. 
  
 (c) The Trustee is entitled to charge the Trust for all expenses and disbursements incurred by it under Section 5.12(a) or that are of the type described
in Sections 4.7(a)(2) or (3) of this Agreement (including the fees and disbursements of its legal counsel), 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. 
  
 Section 5.8. Charges of Sponsor. 
  
 (a) The Sponsor is entitled to receive from the Trust, as an expense of the Trust, a fee for services that will accrue daily and be paid monthly in
arrears at an annualized rate of 0.50% of Adjusted Net Asset Value. 
  
 (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(d) or that are of the type described in Sections 4.7(a)(2), (3) or (4) 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 

  

 20 

 
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 Securities Exchange Act of 1934, as amended. 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. 
  
 (b) The Sponsor shall have all necessary and exclusive power and authority to (i) from time to time adopt, implement or
amend such disclosure controls and procedures as are necessary or desirable, in the Sponsor’s reasonable judgment, to ensure compliance with the disclosure and ongoing reporting obligations under any applicable securities laws; (ii) appoint and
remove the auditors of the Trust; and (iii) seek from the relevant securities or other regulatory authorities such relief, clarification or other action as the Sponsor shall deem necessary or desirable regarding the disclosure or financial reporting
obligations of the Trust. 
  
 (c) The policies and procedures
comprising the Trust’s initial Internal Control Over Financial Reporting have been adopted as of the date of this Agreement and copies thereof have been delivered to the appropriate officers of the Sponsor and the Trustee. Amendments to such
initial Internal Control Over Financial Reporting may be proposed from time to time by the 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(d) 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. 
  

 21 

 ARTICLE VI 
  
 AMENDMENT AND TERMINATION 
  
 Section 6.1. Amendment. 
  
 The Trustee and the Sponsor may amend any provisions of this Agreement without the consent of any Registered Owner. Any amendment that imposes or
increases any fees or charges (other than taxes and other governmental charges, registration fees or other such expenses), or that otherwise prejudices any substantial existing right of the Registered Owners will not become effective as to
outstanding Shares until 30 days after notice of such amendment is given to the Registered Owners. 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 for five consecutive trading
days 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; or 
  
 (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. 
  

 22 

 (b) If no event specified in subsection (a) above occurs first, the Trust shall terminate in 2046, on the
fortieth anniversary of its creation and the Trustee shall mail a notice of that impending termination to the Registered Owners at least 30 days before that anniversary. 
  
 (c) 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 Silver 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 Silver 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 uninvested the net proceeds of any such sale, together with any other cash then held by it
under this Agreement, unsegregated and without liability for interest, for the pro rata benefit of the Registered Owners of Shares that have not theretofore been Surrendered, such Registered Owners thereupon becoming general creditors of the Trustee
with respect to such net proceeds. 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 Section 5.6. Sections 5.6, 5.7 and 5.8
shall survive termination of this Agreement. 
  
 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, and shall
not be deemed to give any legal or equitable right, remedy or claim whatsoever to any other person. 
  

 23 

 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. Registered Owners, Beneficial Owners and Depositors as Parties; Binding Effect. 
  
 The Registered Owners, Beneficial Owners and Depositors from time to time
shall be parties to this Agreement and shall be bound by all of the terms and conditions hereof by their acceptance of Shares or any interest therein or by their depositing Silver, as the case may be. 
  
 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 
 101 Barclay Street, 22-W 
 New York, New York 10286 
 Attention: ADR Administration 
 Facsimile: (212) 571-3050 
  
 or any other place to which the Trustee may have transferred its Corporate Trust Office with notice to the Sponsor. 
  
 To the Sponsor: 
  
 BARCLAYS GLOBAL INVESTORS INTERNATIONAL INC. 
 45 Fremont Street 
 San Francisco, California 94105 
 Attention: BGI’s Product Management Team, Intermediary Investors and Exchange Traded Products Department 
 Telephone: (415) 402-4671 
 Facsimile:
  (415) 618-5097 
  
 with a copy to: 
  
 BARCLAYS GLOBAL INVESTORS INTERNATIONAL INC. 
 45 Fremont Street 
 San Francisco, CA 94105

 Attention: BGI’s Legal Department 
 Telephone: (415) 597-2860 
 Facsimile:   (415) 597-2753 
  
 or any other place to which the Sponsor may have transferred its principal office with notice to the Trustee. 
  

 24 

 (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. 
  
 Section 7.6. Agent for Service; Submission to Jurisdiction.

  
 The Sponsor hereby (i) irrevocably designates and appoints
Barclays Bank PLC, New York Branch, General Counsel’s office, located at 200 Park Avenue, 4th Floor, New York, New York 10166, 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. 
  
 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. 
  

 25 

 IN WITNESS WHEREOF, BARCLAYS GLOBAL INVESTORS INTERNATIONAL INC. and THE BANK OF NEW YORK have duly
executed this Depositary Trust Agreement as of the day and year first set forth above. 
  

			
	BARCLAYS GLOBAL INVESTORS INTERNATIONAL INC.
		
	By:	 	  

	Name:	 	 
	Title:	 	 
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	THE BANK OF NEW YORK,
	as Trustee
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  

 26 

 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 

 iSHARES SILVER TRUST SHARES 
 ISSUED BY 
 iSHARES SILVER TRUST 
 REPRESENTING 
 FRACTIONAL INTERESTS IN
DEPOSITED SILVER AND ANY OTHER TRUST 
 PROPERTY 
  
 THE BANK OF NEW YORK, as Trustee 
  

			
	No.             	 	* Shares

  
 CUSIP:
                     
  
 THE BANK OF NEW YORK, 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 iShares Silver 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 500,000 Ounces of Silver that are deposited under the Agreement and held by the Custodian referred to in the Agreement. The amount of Silver 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 101 Barclay Street, New York, New York 10286,
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 [            ], 2006 (the
“Agreement”) among Barclays Global Investors International Inc. (herein called the Sponsor), the Trustee, all Registered Owners and Beneficial Owners from time to time of Shares issued thereunder and all Depositors. By becoming a
Registered Owner or Beneficial Owner, or by depositing Silver, a Person becomes a party to the Agreement and 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,
	 	 	 	  	as Trustee
				
	 	 	 	  	By:	 	  

  
 THE TRUSTEE’S
CORPORATE TRUST OFFICE ADDRESS IS 
 101 BARCLAY STREET, NEW YORK, NEW YORK 10286 
  

 A-3Form of Authorized Participant Agreement

 Exhibit 4.2 
  
 AUTHORIZED PARTICIPANT AGREEMENT 
  
 AUTHORIZED PARTICIPANT AGREEMENT (this “Agreement”) dated as of [    ], 2006 among (i) [    ],a
[    ] [organized] under the laws of [    ] (the “Authorized Participant”), (ii) The Bank of New York, a New York Banking corporation acting in its capacity as trustee (in such capacity, the
“Trustee”) of the iShares Silver Trust (the “Trust”), a trust created under New York law pursuant to the provisions of the Depositary Trust Agreement (the “Trust Agreement”) dated
[    ], 2006 between the Trustee and Barclays Global Investors International Inc., in its capacity as sponsor of the Trust (in such capacity, the “Sponsor”), and (iii) the Sponsor. 
  
 R E C I T A L S 
  
 A. Pursuant to the provisions of the Trust Agreement, the Trust may from time
to time issue or redeem equity securities representing an interest in the assets of the Trust (“iShares”), in each case only in aggregate amounts of 50,000 iShares (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 the Trust. 
  
 B. [    ]. has requested to become an “Authorized Participant” with respect to the Trust (as
such term is defined in the 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 iShares of the Trust in compliance with the 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 the form attached thereto as Annex I (a
“Purchase Order”, in the case of an order to purchase one or more Baskets of iShares and a “Redemption Order”, in case of an order to redeem one or more Baskets of iShares). All Purchase Orders and Redemption Orders
(collectively, “Orders”) shall be placed and executed in accordance with the Trust Agreement as supplemented by 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 the Trust Agreement, the provisions of the 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 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 Silver to the Custodian, or any withdrawal of Silver from the 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 

 (b) Promptly upon written demand therefor (accompanied of such reasonable evidence as the Authorized
Participant may request), to reimburse the Trust or the Custodian the amount of any taxes (including value added taxes) that may be imposed on the Trust or the Custodian in connection with any Delivery of Silver 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 Silver to or for the account of the Authorized Participant (in the case of a Redemption Order placed by the Authorized
Participant). 
  
 Capitalized terms used in this Section and not
otherwise defined herein have the meaning ascribed to them in the Procedures. 
  
 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, telegram or facsimile or similar means of same day delivery (with a confirming copy by mail) addressed as follows: 
  

	 	(i)	If to the Trustee: 

  

	 	 	The Bank of New York 

	 	 	101 Barclay Street — Floor 6E 

	 	 	New York, NY 10286 

	 	 	Attn: Alfred Irving or Jarvis Joseph 

	 	 	Telephone: (212) 815-6250 

	 	 	Facsimile: (212) 815-6218 

  

	 	(ii)	If to the Sponsor: 

  

	 	 	Barclays Global Investors International Inc. 

	 	 	45 Fremont Street 

	 	 	San Francisco, CA 94105 

	 	 	Attn: BGI’s Product Management Team, Intermediary Investors and Exchange Traded Products Department 

	 	 	Telephone: (415) 597-2860 

	 	 	Facsimile: (415) 597-2753 

  

	 	 	with a copy to: 

  

	 	 	Barclays Global Investors International Inc. 

	 	 	45 Fremont Street 

	 	 	San Francisco, CA 94105 

	 	 	Attn: BGI’s Legal Department 

	 	 	Telephone: (415) 597-2860 

	 	 	Facsimile: (415) 597-2753 

  

	 	(iii)	If to the Authorized Participant: 

  

	 	 	[    ] 

  

 2 

 or to 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 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 ten (10) Business Days after receipt of the proposed amendment, the amendment will become part of this Agreement in accordance with its terms. 
  
 Section 8. Governing Law. This Agreement shall be governed by and interpreted
in accordance with the laws of the State of New York. 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; provided, that any 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 of such party hereto. 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 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. 
  
 Section 10. 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. 
  

 3 

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

			
	 THE BANK OF NEW YORK, in its capacity as
 Trustee of the iShares Silver Trust,

		
	By:	 	  

	 	 	Name:
	 	 	Title:
	
	 BARCLAYS GLOBAL INVESTORS INTERNATIONAL INC., in its capacity as
 Sponsor

		
	By:	 	  

	 	 	Name:
	 	 	Title:
	
	[AUTHORIZED PARTICIPANT]
		
	By:	 	  

	 	 	Name:
	 	 	Title:

  

 4 

 Schedule 1 
  
 Creation and Redemption Procedures 
  
 iShares Silver Trust 
  
 Creation and Redemption Procedures 
  
 Dated as of                     , 2006

 TABLE OF CONTENTS 
  

									
	 	 	 	 	 	 	 	 	Page

	ARTICLE I	 	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	 	1
					
	 	 	Section 1.01.	 	 	 	Definitions.	 	1
					
	 	 	Section 1.02.	 	 	 	Interpretation.	 	3
					
	 	 	Section 1.03.	 	 	 	Conflicts.	 	3
			
	ARTICLE II	 	CREATION PROCEDURES	 	3
					
	 	 	Section 2.01.	 	 	 	Initial Creation of iShares.	 	3
					
	 	 	Section 2.02.	 	 	 	Subsequent Creation of iShares.	 	3
			
	ARTICLE III	 	REDEMPTION PROCEDURES	 	5
					
	 	 	Section 3.01.	 	 	 	Redemption of iShares.	 	5

  

 -i- 

 iSHARES SILVER TRUST 
  
 CREATION AND REDEMPTION PROCEDURES 
  
 adopted by the Sponsor and the Trustee (each as defined below) as of [    ], 2006 
  
 ARTICLE I 
  
 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 
  
 Section 1.01. Definitions. For purposes of these Procedures, unless the context otherwise requires, the following
terms will have the following meanings: 
  
 “Authorized
Participant” shall have the meaning ascribed to the term in the introductory paragraph of the Authorized Participant Agreement. 
  
 “Authorized Participant Agreement” shall mean the Authorized Participant Agreement to which these Procedures are attached as Schedule 1. 
  
 “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 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 Trust Agreement. 
  
 “Basket Silver
Amount” shall have the meaning ascribed to the term in Section 1.1 of the Trust Agreement. 
  
 “Benchmark Price” shall have the meaning ascribed to the term in Section 1.1 of the Trust Agreement. 
  
 “Business Day” shall have the meaning ascribed to the term in Section 1.1 of the Trust Agreement. 
  
 “Creation” means the process that begins when an Authorized Participant
first indicates to the Trustee its intention to purchase one or more Baskets pursuant to these Procedures and concludes with the issuance by the Trustee and Delivery to such Authorized Participant of the corresponding number of iShares. 

 
 “Creation and Redemption Line” shall mean a telephone number designated
as such by the Trustee and communicated to each Authorized Participant in compliance with the notice provisions of the respective Authorized Participant Agreement. 
  
 “Custodial Account” shall mean the account established by the Trustee with the Custodian pursuant to the Custodian
Agreement. 
  
 “Custodian Day” shall mean a day on which the
facilities at which a Delivery of Silver is to take place to or by the Custodian on behalf of the Trust are open for business. 
  

 S1-1 

 “Custodian” shall mean JPMorgan Chase Bank N.A., London Branch, in its capacity as custodian under the
Custodian Agreement, and any successor thereto or additional custodian appointed in compliance with the provisions of the Trust Agreement and the Custodian Agreement. 
  
 “Custodian Agreement” shall mean the Custodian Agreement dated as of
                    , 2006 by and between the Trustee and the Custodian. 
  
 “Delivery” shall mean a delivery of Silver or Shares, as applicable, in each case effected according to the definition of
“Deliver” in Section 1.1 of the Trust Agreement. 
  
 “Depositor” shall mean any Authorized Participant that deposits Silver into the Trust, either for its own account or on behalf of another Person that is the owner or beneficial owner of that Silver. 
  
 “DTC” shall mean The Depository Trust Company, its nominees and their
respective successors. 
  
 “iShares” shall mean shares issued by
the Trustee representing fractional, undivided interests in the net assets of the Trust. 
  
 “Initial Creation” shall mean the initial creation of iShares pursuant to the provisions of Section 2.01. 
  
 “LBMA” shall mean the London Bullion Market Association. 
  
 “Order Cut-Off Time” shall have the meaning ascribed to the term in Section 1.1 of the Trust Agreement. 
  
 “Order Date” shall have, (i) with respect to a Purchase Order, the meaning
ascribed to the term in Section 2.3 of the Trust Agreement; and (ii) with respect to a Redemption Order, the meaning ascribed to the term in Section 2.6 of the Trust Agreement. 
  
 “Ounce” shall have the meaning ascribed to the term in Section 1.1 of the Trust Agreement. 
  
 “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. 
  
 “Purchase Order” shall mean an order to purchase one or more Baskets in the form attached hereto as Annex I. 
  
 “Redemption Order” shall mean an order to redeem one or more Baskets in the
form attached hereto as Annex I. 
  
 “Silver” shall have the
meaning ascribed to the term in Section 1.1 of the Trust Agreement. 
  
 “Sponsor” shall mean Barclays Global Investors International Inc., a Delaware corporation, in its capacity as sponsor under the Trust Agreement. 
  
 “Trustee” shall mean The Bank of New York, a New York banking corporation, in its capacity as Trustee under the Trust
Agreement, and any successor thereto in compliance with the provisions thereof. 
  
 “Trust” shall mean the iShares Silver Trust, a trust governed by the provisions of the Trust Agreement. 
  
 “Trust Agreement” shall mean the Depositary Trust Agreement dated as of
                    , 2006 among the Trustee, the Sponsor, all owners and beneficial owners from time to time of iShares and all Depositors.

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

 S1-2 

 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. 
  
 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.

  
 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. 
  
 Section 1.03. Conflicts. In case of conflict between any provision of these Procedures and the terms of the Trust
Agreement, the terms of the Trust Agreement shall control. 
  
 ARTICLE II 
  
 CREATION PROCEDURES 
  
 Section 2.01. Initial Creation of iShares. The initial creation of
iShares 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 iShares. After the Initial Creation, the issuance and Delivery of iShares 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; provided, however, that only Purchase Orders
received by the Trustee prior to the Order Cut-Off Time on a Business Day on which a Benchmark Price is announced shall have such Business Day as the Order Date. Purchase Orders received by the Trustee on or after the Order Cut-Off Time on a
Business Day, or on a Business Day on which no Benchmark Price is announced, shall be considered received at the opening of business on the next Business Day on which a Benchmark Price is announced and shall have as their Order Date such next
Business Day. 
  
 b. For purposes of paragraph ”a”
above, a Purchase Order shall be deemed “received” by the Trustee only when each of the following has occurred no later than 3:59:59 p.m. (New York time): 
  
 (i) An Authorized Representative shall have placed a telephone call to the Trustee’s Creation and Redemption Line
informing the Trustee that the Authorized Participant wishes to place a Purchase Order for a specified number of Baskets, and the location or locations where the Authorized Participant intends to make Delivery of the Basket Silver Amount
corresponding to each Basket (such locations to be limited to those where, in compliance with the Custodian Agreement, the Custodian is authorized to hold Silver on behalf of the Trust). 
  

 S1-3 

 (ii) The Trustee shall have received, via facsimile or electronic mail message, a duly completed,
irrevocable Purchase Order executed by an Authorized Representative of such Authorized Participant. 
  
 c. The Trustee shall provide a written summary to the Custodian of all Orders for such Order Date no later than 4:30 p.m. (New York time). The Trustee
will ask the Custodian to confirm whether delivery can be made at the locations indicated by the Authorized Participant no later than 5:00 p.m. (New York time). 
  

d. Before accepting a Purchase Order, the Trustee shall make sure that there exists at least one location at which the Authorized Participant is
willing to Deliver, and the Custodian is capable of accepting, the requisite amount of Silver in connection with such Purchase Order. Should the Trustee elect to accept the Purchase Order, it shall communicate its decision by sending to the
Authorized Participant (with copies to the Custodian at the offices of the Custodian in London and at each location at which the Authorized Participant will be expected to Deliver Silver pursuant to “c” above), via facsimile or electronic
mail message, no later than 5:00 p.m. (New York time) on the Order Date for such Purchase Order a copy of the corresponding Purchase Order endorsed “Accepted” by the Trustee and indicating the Basket Silver 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
Silver in exchange for Baskets of iShares and will have no binding effect upon the Trust, the Trustee, the Custodian or any other party. 
  
 e. The Authorized Participant will be responsible for the cost of transportation of Silver to the location where it is to be Delivered. The Basket Silver
Amount corresponding to each Basket must be delivered at the locations specified by the Custodian no later than 11:30 a.m. (London time) on the second Custodian Day following the Order Date. Delivery may be made for deposit either in the
Trustee’s Custodial Account or in an account of the Authorized Participant with the Custodian or any subcustodian. If delivery is made for deposit in the Authorized Participant’s account with the Custodian, it will be accompanied by an
irrevocable order to the Custodian authorizing the transfer of the Silver so delivered to the Trustee’s Custodial Account against the delivery by the Trustee of the corresponding number of iShares as provided in paragraph ”h” or
“i” below, as applicable. The Authorized Participant shall contact the Custodian to obtain information regarding the location of the facilities where Delivery shall take place. The Custodian shall take all necessary measures to ensure that
the facilities at which Delivery is to take place in respect of a Purchase Order are prepared to take such Delivery no later than 11:30 a.m. (London time) on the second Custodian Day following the applicable Order Date. 
  
 f. Silver shall be Delivered to the Custodian in the form of Silver bars
only, and must be accompanied by the corresponding bar list; provided, that an amount of Silver not exceeding 1100 Ounces may be Delivered to the Custodian on an Unallocated Basis. Silver that has been Delivered to the Custodian no later than
11:30 a.m. (London time) on a Custodian Day shall be allocated by the Custodian to the Trustee’s Custodial Account no later than 9:00 a.m. (New York time) on the first Custodian Day following the date of such Delivery. In all other cases Silver
Delivered to the Custodian shall be allocated by the Custodian to the Trustee’s Custodial Account no later than the third Custodian Date following the Order Date. 
  
 g. The Custodian shall allocate Silver to the Trustee’s Custodial Account by (i) making entries in the Custodian’s
books and records to identify such Silver as being held for the Trust, it being understood that such entries shall identify each bar of Silver so allocated by refiner, assay, serial number and gross and fine weight; (ii) physically segregating from
Silver held by the Custodian for its own account or on behalf of other clients the Silver so allocated to the Trustee’s Custodial Account; and (iii) sending to the Trustee, via signed facsimile and electronic mail message, a written
confirmation of the allocation, including the identification of the bars allocated as described above. 
  

 S1-4 

 h. On the third Custodian Day following the Order Date corresponding to a Purchase Order, or on such
earlier date as the Trustee in its discretion may agree, the Trustee shall issue the aggregate number of iShares 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: 
  
 (a) in the case Silver bars delivered by the Authorized Participant, it has
reviewed the corresponding bar list and the Silver received from the Authorized Participant to assure that the Silver matches the description in the bar list in terms of weight, fineness, refiner’s marks and bar numbers and that, based on that
review and on such further examination as the Custodian customarily performs in respect of Silver purchased for its own account, the Silver deposited by the Authorized Participant in respect to such Purchase Order (A) complies with the “Good
Delivery” Rules of the LBMA and (B) is held by the Custodian on behalf of the Trust in allocated form (except for amounts not to exceed in the aggregate 1100 Ounces); or 
  
 (b) in the case of Silver delivered on an unallocated basis, the corresponding amount of Silver been allocated to the
Trustee’s Custodian Account and the Silver so allocated is in compliance with the provisions of the paragraph above; 
  
 (ii) the Trustee shall have received from the Authorized Participant a per order transaction fee in the amount of US$2,000.00; 
  
 (iii) the Authorized Participant shall have agreed to pay, or reimburse the
Custodian or the Trust the amount of, any applicable taxes (including VAT) which is or becomes due in connection with the Delivery of Silver to the Custodian; and 
  
 (iv) any other conditions to the issuance under the Trust Agreement shall have been satisfied. 
  
 i. In all other cases, the Trustee shall issue the aggregate number of
iShares 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 the conditions set forth in clauses (i) to (iv) of paragraph ”h” above shall have been met. 
  
 ARTICLE III 
  
 REDEMPTION PROCEDURES 
  
 Section 3.01. Redemption of iShares. Redemption of iShares 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; provided, however, that only Redemption Orders received by the Trustee prior to the Order Cut-Off Time on a Business Day 
  

 S1-5 

 on which a Benchmark Price is announced shall have such Business Day as the Order Date. Redemption Orders received by the
Trustee on or after the Order Cut-Off Time on any Business Day, or on a Business Day on which no Benchmark Price is announced, shall be considered received at the opening of business on the next Business Day on which a Benchmark Price is announced
and shall have as their Order Date such next Business Day. 
  
 b.
For purposes of paragraph ”a” above, a Redemption Order shall be deemed “received” by the Trustee only when each of the following has occurred no later than 3:59:59 p.m. (New York time): 
  
 (i) An Authorized Representative shall have placed a telephone call to the
Trustee’s Creation and Redemption Line informing the Trustee that the Authorized Participant wishes to place a Redemption Order for a specified number of Baskets. 
  
 (ii) Within one hour following such telephone call, the Trustee shall have received, via facsimile or electronic mail
message, a duly completed, irrevocable Redemption Order executed by an Authorized Representative of such Authorized Participant. 
  
 c. Should the Trustee elect to accept such Redemption Order, it shall communicate its decision to the Authorized Participant by sending to the Authorized
Participant (with copy to the Custodian), via facsimile or electronic mail message, no later than 5:00 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 Silver Basket Amount that the Custodian shall Deliver to the Authorized Participant in respect of each Basket being redeemed. 
  
 d. Unless otherwise agreed to by the Custodian, Silver will be Delivered by the Custodian in the form of Silver bars only; provided, that an amount
of Silver not exceeding 1100 Ounces may be Delivered by the Custodian on an Unallocated Basis. While a redeeming Authorized Participant will be entitled to express a preference as to the city or facility where it would like to have the Silver Basket
Amount delivered, the Trustee, in consultation with the Custodian and taking into account the best interests of the Trust and the Owners, will have final authority to decide where such delivery will take place. The Custodian shall inform via
electronic mail message or facsimile sent to an Authorized Person of the redeeming Authorized Participant no later than 11:00 a.m. (New York time) on the first Custodian Day following the Order Date of such Redemption Order the exact location(s)
where Delivery will be made, and the amount of Silver to be Delivered to the Authorized Participant at each such location. 
  
 e. Provided that by 9:00 a.m. (New York time) on the third Custodian Day following the Order Date of a Redemption Order, the Trustee shall have confirmed
in writing to the Custodian that: 
  
 (i) the Authorized
Participant has Delivered to the Trustee’s account at DTC the total number of iShares to be redeemed by such Authorized Participant pursuant to such Redemption Order; 
  
 (ii) the Trustee has received a per order transaction fee of US$2,000.00; 
  
 (iii) the Authorized Participant has agreed to pay, or reimburse the
Custodian or the Trust the amount of, any applicable taxes (including VAT) which is or becomes due in connection with the Delivery of Silver to the Authorized Participant; and 
  
 (iv) any other conditions to the redemption under the Trust Agreement have been satisfied, 
  

 S1-6 

 the Custodian will, as applicable, on such day, at the locations and in the amounts specified in the communication sent
in compliance with paragraph ”d” above, either: (A) Deliver to such Authorized Participant the corresponding amount of Silver which complies with the “Good Delivery” Rules of the LBMA or (B) credit the account indicated by the
redeeming Authorized Participant in its Redemption Order. Having made such Delivery, the Custodian will send written confirmation thereof to the Trustee who will then cancel the iShares so redeemed. 
  
 f. 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 as described in clauses ”i” to “iv” of paragraph ”e” above. 
  
 g. The foregoing provisions notwithstanding, the Custodian shall not be
liable for any failure or delay in making Delivery of Silver 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 or act of God, or a similar cause that is beyond the Custodian’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. 
  
 h. In the event that, by
9:00 a.m. (New York time) on the third Custodian Day following the Order Date of a Redemption Order, Trustee’s account at DTC shall not have been credited with the total number of iShares corresponding to the total number of Baskets to be
redeemed pursuant to such Redemption Order, 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 respective Authorized Participant and
the Custodian. 
  

 S1-7 

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

					
	 THE BANK OF NEW YORK, in its capacity as
 Trustee of the iShares Silver Trust,

		
	By:	 	  

	 	 	Name:	 	 
	 	 	Title:	 	 

  

							
	 BARCLAYS GLOBAL INVESTORS
 INTERNATIONAL INC., in its capacity as
 Sponsor

				
	By:	 	  

	 	By:	 	  

	 	 	 Name:
 Title:
	 	 	 	 Name:
 Title:

  

 S1-8 

 ANNEX I TO CREATION AND REDEMPTION PROCEDURES 
  
 THE BANK OF NEW YORK, TRUSTEE 
 CREATION/REDEMPTION ORDER FORM 
 iSHARES SILVER TRUST 
  

			
	CONTACT INFORMATION FOR ORDER EXECUTION:
	Telephone order number:	 	(718) 315-4811 / 315-4512
	Fax order number:	 	(718) 315-4881
	Custodian Instructions	 	 

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

	I.	TO BE COMPLETED BY PARTICIPANT: 

  

			
	Date:                                     
               	  	Time:                                     
               
	Broker Name:                                   
         	  	Firm
Name:                                       
   
	DTC Participant Number:                            	  	Fax
Number:                                       
 
	Telephone Number:
                                        
            

  
 Type of order (Check Creation or
Redemption please) (One Basket = 50,000 Shares) 
  

			
	Creation:                                     
                 	  	Redemption:
                                
                    
		
	# Of Baskets:	  	Number:
                                        
                                        
              
		
	Order #	  	Number written out:
                                        
                                  

  
 Please indicate Silver clearing agent:

  

							
	 ̈    JP Morgan	 	 ̈    Deutsche Bank	 	 ̈    HSBC	 	 ̈    Bank of Nova Scotia
	 ̈    UBS	 	If physical delivery, check here                     ̈    and contact JP Morgan regarding settlement

  
 This Purchase or Redemption Order is
subject to the terms and conditions of the Depositary Trust Agreement of the iShares Silver 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 Depositary Trust Agreement (including, if this is a Purchase Order, the representations in Section 3.2 of the Depositary 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 that (1) once accepted by the Trustee, this Purchase or Redemption Order will become a legally binding contract for the
delivery of the Basket Silver Amount per Basket, or the number of Baskets, indicated above, and that the final Basket Silver 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. 
  

									
	  

	 	 	  	  

	  	  

	  	 
	 	 	 	  	Date	  	Authorized Person’s Signature	  	 

  
 II. TO BE COMPLETED BY TRUSTEE AND
CUSTODIAN: 
  
 This certifies that the above order has been: 
  

	
	                                      
    Accepted by the Trustee
	                                      
    Accepted by Custodian
	                                      
    Declined-Reason:    
                                        
                    

  

			
	Final # of Ounces                
                                	  	Final # of SLV Shares   
                                
		
	Final Cash Due to BNY      
                                	  	 

  

											
						
	
	 	 	  	
	  	 	  	
	  	 
	Date                        	 	 	  	Time                    	  	 	  	Authorized Signature of Custodian	  	 
						
	
	 	 	  	
	  	 	  	
	  	 
	Date	 	 	  	Time	  	 	  	Authorized Signature of Trustee	  	 

  

 S1-9 

 Schedule 2 
  
 Standard Terms 
  
 iShares Silver Trust 
  
 Standard Terms for Authorized Participant Agreements 
  
 Dated as of                     , 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	 	5
				
	 	 	Section 6.01.	 	Indemnification	 	5

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

									
	 	 	 	 	Page

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

  

 -ii- 

 STANDARD TERMS FOR AUTHORIZED PARTICIPANT AGREEMENTS (the “Standard Terms”) agreed to as of
[            ], 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. 
  

 S2-1 

 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 
  

 S2-2 

 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. 
  

 S2-3 

 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 
  

 S2-4 

 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. 
  
 ARTICLE VI 
  
 INDEMNIFICATION; LIMITATION OF LIABILITY 
  
 Section 6.01. Indemnification. The provisions of this Section 6.01 shall survive termination of the Agreement.

  

 S2-5 

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

 S2-6 

 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. 
  
  

 S2-7 

 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:	 	  

	 	 	 	 
	Name:	 	 	 	 	 	 
	Title:	 	 	 	 	 	 
			
	BARCLAYS GLOBAL INVESTORS INTERNATIONAL INC., in its capacity as Sponsor	 	 	 	 
				
	By:	 	  

	 	By:	 	  

	Name:	 	 	 	Name:	 	 
	Title:	 	 	 	Title:	 	 

  

 S2-8 

 Schedule 3 
  

Certificate of Authorized Representatives 
  
 Each of the following employees of [            ] (each, an “Authorized Representative”) is
authorized, in accordance with the Authorized Participant Agreement dated [            ], 2005 among [            ], the Sponsor
and the Trustee, to submit Purchase Orders and Redemption Orders on behalf and in the name of [            ] and to give instructions or any other notice or request on behalf of
[            ] with respect to such Orders or any other activity contemplated by the Authorized Participant Agreement. 
  
 Name: 
 e-mail Address: 
 Telephone: 
 Fax: 
  
 Name: 
 e-mail Address: 
 Telephone: 
 Fax: 
  
 Name: 
 e-mail Address: 
 Telephone: 
 Fax: 
  
 Name: 
 e-mail Address: 
 Telephone: 
 Fax: 
  
 Name: 
 e-mail Address: 
 Telephone: 
 Fax: 
  
 The undersigned, [            ],
[            ]of [            ], 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:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]