Document:

Form of Limited Liability Company Agreement

Table of Contents

 EXHIBIT 4.2 
  

 LIMITED LIABILITY COMPANY AGREEMENT 
 OF 
 iSHARES® S&P GSCITM NON-ENERGY COMMODITY-INDEXED INVESTING POOL LLC 
 Dated as of [•], 2007 
  

Table of Contents

 
TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE I
	  	
DEFINITIONS AND RULES OF CONSTRUCTION	  	1
	 Section 1.1
	  	 
Definitions
	  	1
	 Section 1.2
	  	 
Rules of Construction
	  	4
			
	 ARTICLE II
	  	
GENERAL	  	4
	 Section 2.1
	  	 
Name
	  	4
	 Section 2.2
	  	 
Organization; Certificate
	  	4
	 Section 2.3
	  	 
Location of Principal Place of Business
	  	5
	 Section 2.4
	  	 
Registered Office
	  	5
	 Section 2.5
	  	 
Registered Agent
	  	5
	 Section 2.6
	  	 
Term
	  	5
	 Section 2.7
	  	 
Purpose
	  	5
	 Section 2.8
	  	 
Powers
	  	6
	 Section 2.9
	  	 
Property of the Investing Pool
	  	6
			
	 ARTICLE III
	  	
CAPITAL CONTRIBUTIONS, INVESTING POOL INTERESTS AND DISTRIBUTIONS	  	6
	 Section 3.1
	  	 
Investing Pool Interests
	  	6
	 Section 3.2
	  	 
Form of Contributions
	  	6
	 Section 3.3
	  	 
Initial Contributions
	  	6
	 Section 3.4
	  	 
Additional Contributions
	  	6
	 Section 3.5
	  	 
Capital Accounts
	  	7
	 Section 3.6
	  	 
Allocations for Capital Account Purposes
	  	8
	 Section 3.7
	  	 
Allocations for Tax Purposes
	  	9
	 Section 3.8
	  	 
Tax Conventions
	  	9
	 Section 3.9
	  	 
Tax Allocations With Respect to Beneficial Owners
	  	11
	 Section 3.10
	  	 
Investing Pool Interests as Personal Property
	  	11
	 Section 3.11
	  	 
Interest on Capital Contributions
	  	11
	 Section 3.12
	  	 
Valuation
	  	11
	 Section 3.13
	  	 
Limitation on Distributions
	  	12
			
	 ARTICLE IV
	  	
MEMBERS	  	12
	 Section 4.1
	  	 
Powers of Members
	  	12
	 Section 4.2
	  	 
Resignation
	  	12
	 Section 4.3
	  	 
Liability of Members
	  	13
			
	 ARTICLE V
	  	
MANAGEMENT	  	13
	 Section 5.1
	  	 
Manager
	  	13
	 Section 5.2
	  	 
Authority of the Manager
	  	13
	 Section 5.3
	  	 
Officers and Agents of the Investing Pool
	  	14
	 Section 5.4
	  	 
Officers: Term of Office; Resignation; Removal
	  	14

  

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 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	Section 5.5	  	
Reliance by Third Parties	  	14
	Section 5.6	  	
Appointment of a Futures Commission Merchant and Clearing FCM	  	14
	Section 5.7	  	
Appointment of a Commodity Trading Adviser	  	15
	Section 5.8	  	
Manager Allocation; Assumption of Operating Expenses	  	15
	Section 5.9	  	
Determination of Net Asset Value	  	15
			
	ARTICLE VI	  	
TAX MATTERS	  	15
	Section 6.1	  	
Tax Information	  	15
	Section 6.2	  	
Taxation as a Partnership and Tax Elections	  	16
	Section 6.3	  	
Adjustments Pursuant to Section 754 Election	  	16
	Section 6.4	  	
Notice of Redemptions	  	16
	Section 6.5	  	
Withholding Taxes	  	17
	Section 6.6	  	
Confidentiality; Third Party Beneficiary 	  	17
	Section 6.7	  	
Compliance by Beneficial Owners	  	17
			
	ARTICLE VII	  	
TRANSFERS OF INVESTING POOL INTERESTS	  	18
	Section 7.1	  	
Transfers of Investing Pool Interests	  	18
			
	ARTICLE VIII	  	
DISSOLUTION, LIQUIDATION AND TERMINATION	  	18
	Section 8.1	  	
No Dissolution	  	18
	Section 8.2	  	
Events Causing Dissolution	  	18
	Section 8.3	  	
Notice of Dissolution	  	18
	Section 8.4	  	
Liquidation	  	18
	Section 8.5	  	
Termination	  	19
			
	ARTICLE IX	  	
MISCELLANEOUS	  	19
	Section 9.1	  	
Binding Effect; Entire Agreement	  	19
	Section 9.2	  	
Amendments	  	19
	Section 9.3	  	
Governing Law; Severability	  	19
	Section 9.4	  	
Consent to Jurisdiction	  	19
	Section 9.5	  	
Relationship Between this Agreement and the Act	  	19
	Section 9.6	  	
Exculpation	  	20
	Section 9.7	  	
Indemnification	  	20
	Section 9.8	  	
Notices	  	20
	Section 9.9	  	
Headings	  	21
	Section 9.10	  	
Counterparts	  	21
	Section 9.11	  	
Books and Records	  	21
		
	
ANNEX A — Initial Capital Contributions 	  	

  

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 LIMITED LIABILITY COMPANY AGREEMENT 
 This Limited Liability Company Agreement of iShares® S&P GSCITM Non-Energy Commodity-Indexed Investing Pool LLC, a Delaware limited liability company (the “Investing Pool”), is
made as of [•], 2007, among iShares® S&P
GSCITM Non-Energy Commodity-Indexed Trust, a Delaware statutory trust, in its capacity as a member (“Member A”), and Barclays Global Investors International, Inc., a Delaware corporation, in its capacity as a member
(“Member B” and, together with Member A, the “Members”) and the Manager (as defined below). 
 WHEREAS, the
Investing Pool was formed pursuant to the Delaware Limited Liability Company Act, 6 Del. C. § 18-101, et seq., as amended from time to time and any successor to such statute (the “Act”), pursuant to a Certificate
of Formation (as it may be amended, modified, supplemented or restated from time to time, the “Certificate”) filed with the Secretary of State of Delaware on [•], 2007. 
 NOW, THEREFORE, in consideration of the foregoing and the mutual covenants hereinafter set forth, the Members, intending to be legally bound, declare the
following to be the limited liability company agreement of the Investing Pool and hereby mutually covenant and agree as follows: 
 
ARTICLE I 
 DEFINITIONS AND RULES OF CONSTRUCTION 
 
Section 1.1 Definitions. Except as otherwise specified in this Agreement or unless the context may otherwise require, the following terms have the respective meanings set forth below for all purposes of this
Agreement. 
 “Act” has the meaning specified in the recitals hereto. 
 “Adjusted Property” means any property the book value of which has been adjusted as provided by Section 3.5(d). 

“Administrator” means Barclays Global Investors, N.A., a national banking association, or another entity appointed by the Manager to
perform administration services for the Investing Pool on behalf of the Manager. 
 “Affiliate” means, with respect to any
Person, any Person directly or indirectly controlling, controlled by or under common control with such Person. 
 “Agreement” means this Limited Liability Company Agreement as amended, modified, supplemented and restated from time to time, in accordance with its terms. 
 “Beneficial Owner” means a person treated as a direct or indirect partner in the Investing Pool for U.S. federal income tax purposes,
including for this purpose a person that is treated as 

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owning an interest in Member A if the Investing Pool is notified in a manner satisfactory to the Manager as to the identity of such Beneficial Owner.

 “Book-Tax Disparity” means, with respect to any property, as of any date of determination, the difference between the
book value of such property (as initially determined under Section 3.12 in the case of contributed property, and as adjusted from time to time in accordance with Section 3.5(d)), and the adjusted basis thereof for U.S.
federal income tax purposes, as of such date of determination. A Member’s share of the Investing Pool’s Book-Tax Disparities will be reflected by the difference between such Member’s Capital Account balance, as maintained pursuant to
Section 3.5, and such balance had the Capital Account been maintained strictly in accordance with tax accounting principles. 
 “Business Day” means any day (1) on which none of the following occurs: (a) the Exchange is closed for regular trading, (b) the CME is closed for regular trading or (c) the Federal Reserve wire transfer
system is closed for cash wire transfers, or (2) that the Trustee determines that it is able to conduct business. 
 “Capital
Account” has the meaning specified in Section 3.5(a). 
 “CERFs” means the S&P GSCITM Non-Energy
Excess Return futures contracts traded on the CME. 
 “Certificate” has the meaning specified in the recitals hereto.

 “Clearing FCM” means, initially, Goldman, Sachs & Co., or any other futures commission merchant(s) appointed by
the Manager as clearing futures commission merchant(s) for the Investing Pool. 
 “CME” means the Chicago Mercantile
Exchange Inc., or its successor. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Exchange” means the New York Stock Exchange. 
 “Futures Commission Merchant” means any futures commission merchant, including the Clearing FCM, that solicits or accepts orders for CERFs on the CME for, and accepts payment from or on behalf of, the
Investing Pool. 
 “Indemnitees” has the meaning specified in Section 9.7. 
 “Initial Contributions” has the meaning specified in Section 3.3(b). 
 “Investing Pool” has the meaning specified in the Preamble hereto. 
 “Investing Pool Administrator” means Investors Bank & Trust Company, a banking corporation organized under the laws of
Massachusetts, when acting in its capacity as an administrator of the Investing Pool on behalf of the Administrator. 
  

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 “Investing Pool Interests” means the limited liability company interests issued by the
Investing Pool to the Members. 
 “Manager” means Barclays Global Investors International, Inc., a Delaware corporation, or
any successor thereto, in its capacity as manager of the Investing Pool. The Manager is hereby designated as a “manager” of the Investing Pool within the meaning of § 18- 101(10) of the Act. 
 “Member A” has the meaning specified in the Preamble hereto. 
 “Member B” has the meaning specified in the Preamble hereto. 
 “Members” has the meaning specified in the Preamble hereto, together with any successor members permitted hereunder. 
 “Net Asset Value” means the aggregate value of (1) the CERFs, Short-Term Securities, cash and other assets of the Investing Pool
(calculated on the basis provided in Section 3.12) owned as of the most recent close of trading of the Exchange less (2) the Investing Pool’s accrued expenses and liabilities as of the most recent close of trading of the
Exchange. 
 “Operating Expenses” means the costs of employing the Administrator, the Investing Pool Administrator and the
Tax Administrator (or any other Persons to whom the Manager or any authorized delegatee may delegate performance of administrative services for the Investing Pool) and any other expenses of a kind that might be considered ordinary operating expenses
of the Investing Pool, but excluding any commissions payable to the Clearing FCM or any other Futures Commission Merchant. 
 “Percentage Interest” means (a) as to each Member, the portion (expressed as a percentage) of the total outstanding Investing Pool Interests held by such Member, and (b) as to any Beneficial Owner, other than a
Member, the product of (i) the Percentage Interest of Member A as determined under clause (a) above multiplied by (ii) a fraction, the numerator of which is the number of such Beneficial Owner’s Shares and the denominator of
which is the total number of Shares outstanding as of the date of determination. 
 “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. 
 “Redemption Event” means any date on which the Investing Pool redeems all or a portion of a Member’s Investing Pool Interests in
exchange for CERFs, Short-Term Securities or cash. 
 “Shares” has the meaning specified in the Trust Agreement. 

“Short-Term Securities” means U.S. Treasury securities or other short-term securities and similar securities, in each case that are
eligible as margin deposits under the rules of the CME. 
 “Substitute Member” has the meaning specified in
Section 7.1. 
  

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 “Tax Administrator” means PricewaterhouseCoopers LLP, a limited liability partnership
formed under the laws of the State of Delaware, when acting in its capacity as tax administrator of the Investing Pool on behalf of the Administrator. 
 “Tax Matters Partner” shall mean the tax matters partner for the Investing Pool as such term is defined in Section 6231(a) (7) of the Code. 
 “Transaction Documents” means the Distribution Agreement, the Investment Advisory Agreement, the Investing Pool Sub-license Agreement
and all documents and certificates contemplated thereby or delivered in connection therewith. 
 “Trust Agreement” means the
Trust Agreement of the iShares® S&P GSCITM Non-Energy Commodity-Indexed Trust, dated as of
[•], 2007, as amended from time to time, among Barclays Global Investors International, Inc., as sponsor, the Trustee, and Wilmington Trust Company, as Delaware trustee. 
 “Trustee” means Barclays Global Investors, N.A., a national banking association, in its capacity as administrative trustee of
iShares® S&P GSCITM Non-Energy Commodity-Indexed Trust. 
 “Unrealized Gain” attributable to an Investing Pool property means, as of any date of determination, the excess, if any, of the fair
market value of such property (as determined for purposes of Section 3.5(d)) as of such date of determination over the adjusted basis of such property as of such date of determination. 
 “Unrealized Loss” attributable to an Investing Pool property means, as of any date of determination, the excess, if any, of the adjusted
basis of such property as of such date of determination over the fair market value of such property (as determined for purposes of Section 3.5(d)) as of such date of determination. 
 
Section 1.2 Rules of Construction. Unless the context may otherwise require: 
 (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 then 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. 
  

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ARTICLE II 
 GENERAL 
 
Section 2.1 Name. The name of the Investing Pool is “iShares® S&P GSCITM Non-Energy Commodity-Indexed Investing Pool LLC”. 
 
Section 2.2 Organization; Certificate. Pursuant to the Act, the Investing Pool was formed on [•], 2007. The parties hereby ratify the execution, delivery and filing of the Certificate with the Secretary of
State of Delaware by [•] as an “authorized person” within the meaning of the Act. Upon the execution hereof, [•]’s powers as an “authorized person” ceased, and the Manager became a designated “authorized
person” and shall continue as a designated “authorized person” within the meaning of the Act. The affairs of the Investing Pool shall be governed by this Agreement and the laws of the State of Delaware. The Manager, as an
“authorized person,” shall immediately, and from time to time hereafter as may be required by applicable law, execute any required amendments to the Certificate and do all filings, recordings and other acts as may be appropriate to comply
with the operation of the Investing Pool under the Act. 
 
Section 2.3 Location of Principal Place of Business. The location of the principal place of business of the Investing Pool is 45 Fremont Street, San Francisco, CA 94105 or such other location within or without the
State of Delaware as may be determined by the Manager. In addition, the Investing Pool may maintain such other offices as the Manager may deem to be advisable at any other place or places within or without the State of Delaware. 
 
Section 2.4 Registered Office. The address of the registered office of the Investing Pool in the State of Delaware is at [Corporation Service Company, 2711 Centerville Road, Suite 400, in the City of Wilmington,
Delaware 19808], or at such other place as the Manager may determine from time to time. 
 
Section 2.5 Registered Agent. The registered agent for the Investing Pool is [Corporation Service Company, located at 2711 Centerville Road, Suite 400, in the City of Wilmington, Delaware 19808], or such other
registered agent as the Manager may designate from time to time. 
 
Section 2.6 Term. The term of the Investing Pool commenced upon the date the Certificate was filed in the office of the Secretary of State of Delaware and shall continue until the Investing Pool is dissolved in
accordance with the provisions of Section 8.2. 
 
Section 2.7 Purpose. The Investing Pool is organized and formed solely for the purpose of, (a) directly or indirectly buying, selling or otherwise acquiring, holding or owning and disposing of CERFs,
Short-Term Securities and cash as an investor therein (and not as a trader or dealer therein) with a view to tracking the S&P GSCITM Non-Energy Total Return Index over time and (b) conducting any other business or duties authorized by this Agreement, as well as any activities
incidental or necessary to carry out the foregoing purpose and the duties set forth in this Agreement. 
  

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Section 2.8 Powers. In furtherance of its purpose, but subject to all of the provisions of this Agreement, the Investing Pool shall have the power and is hereby authorized to do anything and engage in any activity
related to its purpose, business or activities as may be necessary, convenient or incidental to the conduct of its business or activities, and shall have and may exercise all of the powers, rights and privileges conferred upon limited liability
companies formed pursuant to the Act or by any other law of the State of Delaware or by this Agreement (if not prohibited by the Act), together with any powers incidental thereto, so far as such powers and rights are necessary, suitable or
convenient to the conduct, promotion or attainment of the business purposes or activities of the Investing Pool; provided, that the Investing Pool shall not incur any indebtedness. 
 
Section 2.9 Property of the Investing Pool. All business of the Investing Pool shall be conducted in the name of the Investing Pool. The Investing Pool shall hold title to all of its property in the name of the
Investing Pool. 
 
ARTICLE III 
 CAPITAL CONTRIBUTIONS, INVESTING POOL 
 INTERESTS AND DISTRIBUTIONS 
 
Section 3.1 Investing Pool Interests. (a) The Members shall own all of the Investing Pool Interests. Investing Pool Interests may not be issued to or redeemed by any Person other than a Member. 
 (b) The Members acknowledge and agree that their Investing Pool Interests shall be adjusted, from time to time, to reflect (i) additional capital
contributions of CERFs, Short-Term Securities or cash, (ii) transfers by Members of their Investing Pool Interests in accordance with Section 7.1, (iii) Redemption Events (iv) such other events as otherwise may give rise
to a change in a Member’s ownership of Investing Pool Interests under this Agreement, and (v) distributions made to the Manager pursuant to Section 5.8. 
 (c) The ownership of Investing Pool Interests shall be recorded and reflected on the books of the Investing Pool. Initially, Investing Pool Interests
shall not be evidenced by any certificate or other written instrument, but shall be evidenced only by this Agreement. In the event that the Manager decides to issue certificates evidencing the ownership of Investing Pool Interests, such certificates
shall be in the form determined by the Manager. 
 
Section 3.2 Form of Contributions. The Members may make contributions of capital to the Investing Pool only in the form of CERFs, Short-Term Securities and/or cash, in each case as determined by the Manager in its
discretion. 
 
Section 3.3 Initial Contributions. Annex A hereto sets forth the respective contributions to the Investing Pool, as of the date hereof, by each Member (the “Initial Contributions”).

 
Section 3.4 Additional Contributions. The Members may make additional capital contributions of CERFs, Short-Term Securities and/or cash to the Investing Pool from time to time in accordance with the terms of this
Agreement. 
  

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Section 3.5 Capital Accounts. 
 (a) The Investing Pool shall establish and maintain a separate account
(the “Capital Account”) for each Member’s Investing Pool Interests in accordance with the following provisions: 
 (i) Initial Capital Account. The initial balance of the Capital Account of each Member shall be such Member’s Initial Contribution. 
 (ii) Adjustments to Capital Accounts. 
 (A) Each Member’s Capital Account shall be increased by the amount of additional cash and the value (as determined under Section 3.12) of any CERFs or Short-Term Securities contributed to the
Investing Pool by such Member, and by any income or gain (including income and gain exempt from tax) computed in accordance with Section 3.5(b) and allocated to such Member pursuant to Section 3.6. 
 (B) Each Member’s Capital Account shall be decreased by the amount of cash and the value (as determined under
Section 3.12) of any CERFs or Short-Term Securities distributed to such Member pursuant to any provision of this Agreement, and by any expenses, deductions or losses computed in accordance with Section 3.5(b) and allocated to
such Member pursuant to Section 3.6. 
 (iii) Contributions; Distributions; Redemption Events. 

(A) Each Member agrees that it will contribute property to the Investing Pool only if such property has, to the best of that
Member’s knowledge after reasonable inquiry, a basis for tax purposes equal to the fair market value of such property, and acknowledges that the Investing Pool will rely upon such fair market value basis for purposes of determining and
allocating items of income, gain, loss, deduction, basis and other tax items. For this purpose, Section 3.12 shall apply to determine fair market value. 
 (B) In determining which CERFs and Short-Term Securities, if any, are to be distributed to a Member or sold or closed out in connection
with a Redemption Event pursuant to the provisions of this Agreement, the Manager shall adopt a standard procedure for selecting such CERFs or Short-Term Securities that is applied consistently to all Redemption Events. Unless the Manager determines
that another lot selection method more accurately allocates taxable gain and loss to Members in a manner that corresponds to their economic gain and loss, the procedure shall be “first in, first out,” “last in, last out,” or a
combination thereof. 
 (b) For purposes of computing the amount of any item of income, gain, deduction, expense or loss to be reflected in a
Member’s Capital Account, the determination, recognition and classification of any such item shall be the same as its determination, recognition and classification for federal income tax purposes; provided that: 
  

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 (i) Items described in Section 705(a)(2)(B) of the Code shall be treated as items of
deduction. All fees and other expenses incurred by the Investing Pool to promote the sale of (or to sell) an Investing Pool Interest that can neither be deducted nor amortized under Section 709 of the Code shall, for purposes of Capital Account
maintenance, be treated as an item described in Section 705(a)(2)(B) of the Code. 
 (ii) Except as otherwise provided in
Treasury Regulations Section 1.704-1(b)(2)(iv)(m), the computation of all items of income, gain, loss and deduction shall be made without regard to any election under Section 754 of the Code. 
 (iii) In computing income, gain, deduction, expense or loss for Capital Account purposes, the amount of such item shall be determined
taking into account the book value of the Investing Pool’s property, as adjusted pursuant to Section 3.5(d). 
 (c) In the
event any Member’s Investing Pool Interests are transferred in accordance with the terms of this Agreement or the Trust Agreement, the transferee shall succeed to the Capital Account of such Member to the extent such Capital Account relates to
the transferred Investing Pool Interests. 
 (d) Consistent with the provisions of Treasury Regulations Section 1.704-1(b)(2)(iv)(f),
upon an issuance or redemption of Investing Pool Interests or otherwise as appropriate pursuant to generally accepted industry accounting practices, the Capital Accounts of all Members may, immediately prior to such issuance or redemption, be
adjusted (consistent with the provisions hereof) upwards or downwards to reflect any Unrealized Gain or Unrealized Loss attributable to each Investing Pool property, as if such Unrealized Gain or Unrealized Loss had been recognized upon an actual
sale of each such property immediately prior to such issuance or redemption and had been allocated to the Members at such time pursuant to Section 3.6. Pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(g), appropriate
adjustments shall be made to the book value of each Investing Pool property with Unrealized Gain or Unrealized Loss. Proper adjustment shall be made to the amount of any Capital Account adjustment under this Section 3.5(d) to take into
account any prior Capital Account adjustment under this Section. 
 
Section 3.6 Allocations for Capital Account Purposes. 
 (a) For purposes of maintaining the Capital
Accounts and in determining the rights of the Members among themselves, except as otherwise provided in this Section 3.6, each item of income, gain, loss, expense and deduction (computed in accordance with Section 3.5(b))
shall be allocated to the Members in accordance with their respective Percentage Interests. 
 (b) Member B shall be treated as receiving a
guaranteed payment equal to an amount corresponding to the allocation described in Section 5.8 hereof. 
 (c) Pursuant to
Treasury Regulations Section 1.704-1(b)(2)(iv)(g), items of depreciation, depletion, amortization and gain or loss attributable to Adjusted Property that has a Book-Tax Disparity shall be allocated among the Members in accordance with Treasury
Regulations Section 1.704-1(b)(2)(iv)(g)(3). 
  

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 (d) If any Member unexpectedly receives any adjustments, allocations or distributions described in
Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(5) or 1.704- 1(b)(2)(ii)(d)(6), items of Investing Pool income and gain shall be specially allocated to such Member in an amount and manner sufficient to eliminate a deficit balance in its
Capital Account (after decreasing such Member’s Capital Account balance by the items described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(5) and 1.704-1(b)(2)(ii)(d)(6)) created by such adjustments, allocations or distributions
as quickly as possible. This Section 3.6(d) is intended to constitute a “qualified income offset” within the meaning of Treasury Regulations Section 1.704-1(b) (2)(ii)(d). 
 
Section 3.7 Allocations for Tax Purposes. 
 (a) For U.S. federal income tax purposes, except as otherwise
provided in this Section 3.7, each item of income, gain, loss, deduction and credit of the Investing Pool shall be allocated among the Members in accordance with their respective Percentage Interests. 
 (b) In an attempt to eliminate Book-Tax Disparities, items of income, gain, or loss shall be allocated for U.S. federal income tax purposes among the
Members under the principles of the remedial method of Treasury Regulations Section 1.704-3(d). 
 (c) If any Member unexpectedly
receives any adjustments, allocations or distributions described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d), items of income and gain shall be specially allocated to such Member in an amount and manner consistent with the allocations
of income and gain pursuant to Section 3.6(d). 
 (d) The provisions of this Article III and the other provisions of this
Agreement relating to the maintenance of Capital Accounts are intended to comply with Treasury Regulations Section 1.704-1(b) and shall be interpreted and applied in a manner consistent with such Regulations. The Manager shall be authorized to
make appropriate amendments to the allocations of items pursuant to this Article III if necessary in order to comply with Section 704 of the Code or applicable Treasury Regulations thereunder. 
 
Section 3.8 Tax Conventions. 
 (a) For purposes of Sections 3.5, 3.6 and 3.7, the
Manager shall cause the Investing Pool to adopt such conventions as may be necessary or appropriate in the Manager’s reasonable discretion in order to comply with applicable law, including Section 706 of the Code and the Treasury
Regulations or rulings promulgated thereunder, or to allocate items of the Investing Pool’s income, gain, loss, expenses, deductions and credits in a manner that reflects Members’ Investing Pool Interests. The Manager may revise, alter or
otherwise modify such conventions in accordance with the standard established in the prior sentence. 
 (b) Unless the Manager determines
that another convention is necessary or appropriate in the Manager’s reasonable discretion in order to comply with applicable law, or to allocate items of the Investing Pool’s income, gain, loss, expenses, deductions and credits in a
manner that more accurately reflects Members’ Investing Pool Interests, the Investing Pool shall use the monthly convention described in this Section 3.8(b). 
  

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 (i) All issuances, redemptions and transfers of Investing Pool Interests or beneficial
interests therein shall be deemed to take place at a price equal to the value of such Investing Pool Interest or beneficial interest therein at the end of the Business Day during the month in which the issuance, redemption or transfer takes place on
which the value of an Investing Pool Interest or beneficial interest therein is lowest (such price, the “single monthly price”). Accordingly, in determining Unrealized Gain or Unrealized Loss and in making the adjustments provided for by
Section 3.5(d), the fair market value of all Investing Pool property immediately prior to the issuance, redemption or transfer of Investing Pool Interests shall be deemed to be equal to the lowest value of such property (as determined under
Section 3.12) during the month in which such Investing Pool Interests are issued or redeemed. In the event that the Investing Pool makes an election under Section 754 of the Code, adjustments to be made under Sections 734(b) and 743(b) of
the Code will be made using the same monthly convention, including by reference to the single monthly price. 
 (ii) All
contributed property shall be deemed to be contributed at a price equal to the weighted average value of such property (as determined under Section 3.12) during the month in which such property is contributed. All purchases and sales of
property, however, shall be treated as taking place at a price equal to the purchase or sales price of the property, respectively. 
 (iii) Each item of Investing Pool income, gain, expense, loss, deduction and credit attributable to a transferred Investing Pool Interest shall, for U.S. federal income tax purposes, be determined on a monthly basis and shall be allocated
to the Members who own Investing Pool Interests as of the close of the last day of the month preceding the month in which the transfer occurs, provided that, for the initial period beginning on the date hereof and ending on the last day of the month
following the month in which this agreement becomes effective, such items shall be allocated to the Members who own the Investing Pool Interests as of the close of the last day of the month in which such items arose; and provided further that,
unless the Manager determines that another method is necessary or appropriate in the Manager’s reasonable discretion, gain or loss on a sale or other disposition of all or a substantial portion of the assets of the Investing Pool (or, in the
Manager’s sole discretion, other sales or dispositions of assets if appropriate to more accurately allocate such gain and loss to Members in a manner that corresponds to their economic gain and loss) shall be allocated to the Members who own
Investing Pool Interests as of the close of the day in which such gain or loss is recognized for federal income tax purposes. 
 (iv) All such allocations are intended to constitute a reasonable method of allocation in accordance with Treasury Regulations Section 1.706-1(c)(2)(ii) and to take into account a Member or Beneficial Owner’s varying Investing
Pool Interests during the taxable year of any issuance, redemption or transfer of Investing Pool Interests or beneficial interests therein. Any person who is the transferee of an Investing Pool Interest shall be deemed to consent to the methods of
determination and allocation set forth in this Section 3.8 as a condition of receiving such Investing Pool Interest. 
  

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Section 3.9 Tax Allocations With Respect to Beneficial Owners. To the extent any Beneficial Owner is treated as the direct owner of an Investing Pool Interest for U.S. federal income tax purposes, Sections
3.5, 3.6, 3.7 and 3.8 shall apply to such Beneficial Owner, as appropriate, as if it were a Member. In addition, in order properly to allocate income, gain, loss, expense, deductions and credits to Beneficial Owners pursuant
to the Trust Agreement, the Investing Pool shall for purposes of those Sections treat references to a Member as including references to Beneficial Owners. Accordingly, the Investing Pool shall maintain capital accounts for each Beneficial Owner, and
shall allocate income, gain, loss, expense, deductions and credits with respect to each Beneficial Owner, as if such Beneficial Owner held directly its indirect Investing Pool Interests, in an amount equal to its Percentage Interest. By acquiring a
beneficial ownership interest in an Investing Pool Interest, a Beneficial Owner shall be deemed to consent to such treatment as a condition of receiving such beneficial ownership interest. 
 
Section 3.10 Investing Pool Interests as Personal Property. Each Member hereby agrees that its Investing Pool Interests shall for all purposes be personal property. The Investing Pool shall be the sole owner of the
property and rights conveyed to it. No Member has any interest in specific Investing Pool property, including property conveyed to the Investing Pool by a Member. 
 
Section 3.11 Interest on Capital Contributions. No Member shall be entitled to any interest on its capital contribution. 
 
Section 3.12 Valuation. (a) The value, on any day, of CERFs, Short-Term Securities and any other property, other than cash, under this Agreement shall be determined as of the close of trading on the Exchange
on that day as follows: 
 (i) The Manager (or the Investing Pool Administrator on behalf of the Manager) will value CERFs on
the basis of that day’s announced CME settlement price for the CERF. If there is no announced CME settlement price for the CERF on that day, the Manager (or the Investing Pool Administrator on behalf of the Manager) will use the most recently
announced CME settlement price unless the Manager (or the Investing Pool Administrator on behalf of the Manager) determines that that price is inappropriate as a basis for the valuation of CERFs. 
 (ii) The Manager (or the Investing Pool Administrator on behalf of the Manager) will value all other property not referred to in clause
(i) at (A) its current market value, if quotations for such property are readily available or (B) its fair value, as reasonably determined by the Manager (or the Investing Pool Administrator on behalf of the Manager), if the current
market value cannot be determined 
 (b) The Manager (or the Investing Pool Administrator on behalf of the Manager) may (but is not required
to) employ the services of, and rely upon the reports of, a recognized pricing service (including a pricing service that is an Affiliate of the Manager). If the Manager (or the Investing Pool Administrator on behalf of the Manager) determines that
the procedures in this Section 3.12 are an inappropriate basis for the valuation of the Investing Pool’s assets, it shall determine an alternative basis to be employed. None of the Manager or the Investing Pool 

  

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Administrator shall be liable to any Person for any determination as to the alternative basis for evaluation; provided that such determination is made
in good faith. 
 
Section 3.13 Limitation on Distributions. (a) Members shall be entitled to receive distributions from the Investing Pool (i) upon the occurrence of a Redemption Event, in which case the distribution will
be in the form of CERFs, Short-Term Securities and/or cash as determined by the Manager, or (ii) upon dissolution, liquidation or termination pursuant to Article VIII, in which case the distribution shall be in the form directed by the
Manager in accordance with the terms of this Agreement; provided that, in the case of a Redemption Event, the amount of the distribution shall be determined by the Manager under Section 3.12. 
 (b) The Manager may, but shall not be obligated to, direct the Investing Pool to distribute to Member A cash held by the Investing Pool that is not
required to be held by the Investing Pool in connection with its business. 
 (c) Notwithstanding any provision to the contrary contained in
this Agreement, the Investing Pool, and the Manager on behalf of the Investing Pool, shall not be required to make a distribution to a Member on account of its Investing Pool Interests if such distribution would violate the Act or any other
applicable law. A determination that a distribution is not prohibited under this Section 3.13 or the Act shall be made by the Manager and, to the fullest extent permitted by applicable law, may be based either on financial statements
prepared on the basis of accounting practices and principles that are reasonable under the circumstances or on a fair valuation or any other method that is reasonable under the circumstances. Unless otherwise agreed to by the Members, a Member shall
be entitled only to the distributions expressly provided for in this Agreement. 
 (d) Notwithstanding anything to the contrary contained in
this Agreement, the Members understand and acknowledge that a Member may be compelled to accept a distribution of any asset in kind from the Investing Pool despite the fact that the percentage of the asset distributed to such member exceeds the
percentage of that asset which is equal to the percentage in which such member shares in distributions from the Investing Pool. 
 
ARTICLE IV 
 MEMBERS 
 
Section 4.1 Powers of Members. Notwithstanding anything herein to the contrary, the Members have all of the rights and powers specifically set forth in this Agreement and, to the extent not inconsistent with this
Agreement, in the Act. The Members, in their capacity as members of the Investing Pool, are not agents of the Investing Pool and do not have any right, power or authority to transact any business in the name of the Investing Pool or to act for or on
behalf of or to bind the Investing Pool. No annual or special meetings of the Members are required. 
 
Section 4.2 Resignation. A Member may resign from the Investing Pool prior to the dissolution and winding up of the Investing Pool only upon the transfer of its Investing Pool Interest in accordance with
Section 7.1. Notwithstanding Section 18-604 of the Act, a resigning 

  

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Member shall not be entitled to receive any distribution and shall not otherwise be entitled to receive the fair value of its Investing Pool Interests except
as otherwise expressly provided for in this Agreement. 
 
Section 4.3 Liability of Members. (a) Except as otherwise required by the Act, the debts, obligations and liabilities of the Investing Pool, whether arising in contract, tort or otherwise, shall be the debts,
obligations and liabilities solely of the Investing Pool, and no Member shall be obligated personally for any such debt, obligation or liability solely by reason of being a member of the Investing Pool. Except as expressly required herein or by
applicable law, a Member, in its capacity as such, shall have no liability in excess of (a) the value of its Investing Pool Interests or (b) the amount of any distributions wrongfully distributed to it. 
 (b) The Manager, the officers, any agents (including the Tax Administrator) and any delegatee of the Investing Pool shall not be liable for any claim
relating to taxes (including interest, penalties, assessments or additions to tax, or damages related thereto) that may be imposed on the Investing Pool, the Members or Beneficial Owners with respect to income, gain, loss, expense, deduction, credit
or other tax items relating to an investment in the Investing Pool or the activities of the Investment Pool, so long as such persons have acted in good faith and in a manner believed to be in the best interests of the Members and Beneficial Owners.
The provisions of this Section 4.3(b) shall be in addition to, and shall not limit, the provisions of Sections 9.6 and 9.7. 
 
ARTICLE V 
 MANAGEMENT 
 
Section 5.1 Manager. Except as otherwise specifically provided by applicable law or in this Agreement, the business and affairs of the Investing Pool shall be managed solely by the Manager (or by any officers and
agents of the Investing Pool to whom the Manager delegates its authority, or by such officers, agents and third parties acting at the direction of the Manager). The Manager shall have full and complete authority, power and discretion, acting alone
and without the consent or approval of the Members, to make any and all decisions and to do any and all things that the Manager reasonably deems to be within its authority set forth in Section 5.2. 
 
Section 5.2 Authority of the Manager. (a) Except as otherwise provided in this Agreement, the Manager shall have the power on behalf and in the name of the Investing Pool to carry out any and all of the
objects and purposes of the Investing Pool and to perform such acts and enter into and perform such contracts and other undertakings on behalf of the Investing Pool that the Manager may deem to be necessary, advisable or incidental thereto. Except
for those specific matters identified in this Agreement, the Manager, acting alone and without the consent or approval of the Members, is fully authorized to approve and consent to any matter, and to execute, deliver and perform any document on
behalf of the Investing Pool, within the purposes of the Investing Pool, including, without limitation, the Transaction Documents. The Manager shall have the authority to appoint officers and agents of the Investing Pool and to delegate its
authority to such officers and agents, including, without limitation, to the Administrator (who, in turn, has employed the Investing Pool Administrator to maintain various records on behalf of the Investing Pool and the Tax Administrator to perform
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Investing Pool). The Manager shall have the authority to engage third parties to act at its direction on behalf of the Investing Pool. The Manager shall act
as the Tax Matters Partner and exercise any authority permitted the Tax Matters Partner under the Code and Treasury Regulations, and take whatever steps the Manager, in its reasonable discretion, deems necessary or desirable to perfect such
designation, including filing any forms and documents with the Internal Revenue Service and taking such other action as may from time to time be required under Treasury Regulations. 
 (b) The Manager shall devote so much of its time to the affairs of the Investing Pool and the conduct of the Investing Pool’s business as it, in its
sole judgment, reasonably determines to be required. The Manager is not obligated to do or perform any act or thing in connection with the business of the Investing Pool not expressly set forth herein. 
 
Section 5.3 Officers and Agents of the Investing Pool. Any officer or agent appointed by the Manager pursuant to Section 5.2 shall have such authority as is delegated to such officer or agent by the
Manager. Any such officer or agent shall be authorized to act (and entitled to rely) on the instructions of the Manager and shall have signature authority on behalf of the Investing Pool to the extent granted by the Manager so that agreements and
documents executed by such officer or agent within its authority shall be binding on the Investing Pool. Any officer or agent appointed by the Manager may be an employee of a Member or the Manager or any Affiliate of a Member or the Manager.

 
Section 5.4 Officers: Term of Office; Resignation; Removal. Except as otherwise determined by the Manager, each officer shall hold office until his or her successor is duly appointed or until his or her earlier
resignation or removal. Any officer may resign at any time upon written notice to the Manager. Such resignation shall take effect at the time specified therein, and, unless otherwise specified therein, no acceptance of such resignation is necessary
to make it effective. The Manager may remove any officer with or without cause at any time. Any such removal shall be without prejudice to the contractual rights of such officer, if any, with respect to the Investing Pool, but the appointment of any
officer shall not in and of itself create any contractual rights. Any vacancy occurring in any office of the Investing Pool by death, resignation, removal or otherwise may be filled for the unexpired portion of the term by the Manager at any time.

 
Section 5.5 Reliance by Third Parties. Persons dealing with the Investing Pool are entitled to rely conclusively upon the power and authority of any duly appointed and acting officers or agents acting on behalf of
the Investing Pool. In dealing with any officer or agent duly appointed and acting as set forth in this Agreement, no Person shall be required to inquire into the authority of any such officer or agent to bind the Investing Pool. 
 
Section 5.6 Appointment of a Futures Commission Merchant and Clearing FCM. The Manager shall appoint one or more Futures Commission Merchants to act on its behalf to hold, establish or dispose of long positions in
CERFs. The Manager shall also appoint one or more clearing futures commission merchants to act as a Clearing FCM for the Investing Pool. 
  

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Section 5.7 Appointment of a Commodity Trading Adviser. The Manager shall appoint a commodity trading adviser to act on behalf of the Investing Pool consistent with the purposes set forth herein. 
 
Section 5.8 Manager Allocation; Assumption of Operating Expenses. The Manager hereby agrees that it is obligated to pay (and the Investing Pool is not obligated to pay) all Operating Expenses. In return for
agreeing to pay the Operating Expenses, the Manager will receive an allocation from the Investing Pool that will accrue daily at an annualized rate equal to 0.75% of the Net Asset Value and that will be payable by the Investing Pool monthly in
arrears. 
 
Section 5.9 Determination of Net Asset Value. On each Business Day on which the Exchange is open for regular trading, as soon as practicable after the close of regular trading of the shares of Member A on the
Exchange, the Manager will determine the Net Asset Value and, immediately after making such determination, notify Member A thereof. 
 
ARTICLE VI 
 TAX MATTERS 
 
Section 6.1 Tax Information. (a) The Manager, at its expense, shall prepare or cause to be prepared all federal, state, and local tax returns of the Investing Pool for each year for which such returns are
required to be filed and shall cause such returns to be timely filed. The Manager shall deliver or cause to be delivered to each Member a Form K-1 and such other information, if any, with respect to the Investing Pool as may be necessary for the
preparation of the federal income tax or information returns of such Member and of any Beneficial Owner that directly or indirectly owns an interest in such Member, including a statement showing each Member’s or Beneficial Owner’s share of
income, gain, loss, expense, deductions and credits for such fiscal year for federal income tax purposes as soon as practicable following each fiscal year but generally not later than March 15. Each Member agrees that it shall not, except as
required by applicable law, (i) treat, on its own income or information tax returns or any information returns that it provides to any Beneficial Owner, or to any broker or nominee through which the Beneficial Owner owns its Investing Pool
Interest, any item of income, gain, loss, deduction, credit, basis or any other tax item relating to its Investing Pool Interests in a manner inconsistent with the treatment of such items by the Investing Pool as reflected on the Form K-1 or other
information statement furnished to such Member pursuant to this Section 6.1, or (ii) file any claim for a refund relating to any such item based on, or which would result in, such inconsistent treatment. 
 (b) Each Member shall, upon request, furnish the Manager with its name and address and such other information as may be reasonably requested by the
Investing Pool or its agent for purposes of complying with the Investing Pool’s tax reporting obligations with respect to the Member’s Investing Pool Interests. Each Member agrees that any broker or other nominee through which it holds an
Investing Pool Interest is permitted to furnish such information to the Investing Pool, including information that would be required by Treasury Regulations Section 1.6031(c)-1T and any successor thereto if that Section applied to the holding
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nominee to the Investing Pool. The Member agrees to provide such information to any broker or nominee through which it holds an Investing Pool Interest upon
request. 
 
Section 6.2 Taxation as a Partnership and Tax Elections. Except as provided herein, the Manager may, in its sole discretion, cause the Investing Pool to make, or refrain from making, any income or other tax
elections that the Manager reasonably deems necessary or advisable, including, but not limited to, an election pursuant to Section 754 of the Code. The Manager intends to make the election under Section 754 of the Code. The Members
recognize and intend that the Investing Pool will be classified as a partnership for U.S. income tax purposes, and will not cause the Investing Pool to make an election to be treated as an association taxable as a corporation for U.S. federal income
tax purposes pursuant to Treasury Regulations Section 301.7701-3, or any successor provision, or a similar election under any analogous provision for purposes of state or local law. To the extent necessary, the Investing Pool or the Members (as
appropriate) will make any election necessary to obtain treatment consistent with the foregoing. 
 
Section 6.3 Adjustments Pursuant to Section 754 Election. If the Investing Pool makes an election pursuant to Section 754 of the Code, the Members agree that the basis of Investing Pool Interests and
property of the Investing Pool shall be determined taking into account the provisions of Sections 734(b) and 743(b) of the Code, and except as required by applicable law the Members shall report the basis of its Investing Pool Interest or any
property of the Investing Pool distributed to the Member in a Redemption Event as equal to the basis reported by the Investing Pool or its agents to such Members. The Members acknowledge that, to the extent any Member is subject to the
mark-to-market rules of Section 475 of the Code, the basis of Investing Pool Interests and of any property of the Investing Pool, including property distributed to a Member in a Redemption Event, shall be determined, including for purposes of
Sections 734(b) and 743(b) of the Code, by treating such mark-to-market as having no effect on such basis. 
 
Section 6.4 Notice of Redemptions. Each Member acknowledges that the Investing Pool may report gain or loss and other tax items, including the allocation of basis and adjustments to basis, in reliance upon the
assumption that any redemption of a Member’s Investing Pool Interest is a distribution other than in liquidation of the Member’s Investing Pool Interest (a “partial redemption”), unless it notifies the Investing Pool or its agent
prior to the receipt of CERFS and cash or Short-Term Securities that such distribution is in liquidation of the Member’s Investing Pool Interest (a “complete redemption”). The Member agrees to notify the Investing Pool or its agent
within 5 Business Days of the receipt of CERFS and cash or Short-Term Securities of (i) any gain or loss arising from a redemption of an Investing Pool Interest by the Member in exchange for such property, and (ii) any difference between
the tax basis of such property on the books of the Investing Pool immediately prior to the redemption, as such amount is reported to the Member, and the basis of the distributed property to the Member (such gain or loss or basis difference,
“Section 734(b) items”), in a manner sufficient for the Investing Pool to adjust the basis of undistributed property held by the Investing Pool under Section 734(b) of the Code if the Investing Pool makes an election pursuant to
Section 754 of the Code. Each Member agrees to determine its basis for tax purposes in any property it receives from the Investing Pool in consideration for a redemption of Shares by reference to the tax basis of such property on the books of
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the Member by the Investing Pool, subject to adjustment as required under Section 732 or other applicable law. 
 
Section 6.5 Withholding Taxes. The Investing Pool shall comply with all applicable withholding and backup withholding tax requirements. The Investing Pool shall request, and each Member shall provide to the
Investing Pool, such forms or other documentation as are necessary to establish an exemption from or reduction in withholding tax and backup withholding with respect to each Member, and any representations, forms and documents as shall reasonably be
requested by the Investing Pool to assist it in determining the extent of, and in fulfilling, its withholding and backup withholding tax obligations. The Investing Pool shall file any required forms with applicable jurisdictions and, unless an
exemption from withholding and backup withholding tax is properly established by a Member, shall remit amounts withheld with respect to the Member to the applicable tax authorities. To the extent that the Manager reasonably believes that the
Investing Pool is required to withhold and pay over any amounts (including taxes, interest, penalties, assessments or additions to tax) to any tax authority with respect to distributions or allocations to any Member, and the Investing Pool does
withhold such amounts, the amounts withheld shall be treated as a distribution of cash to the Member in the amount of the withholding and shall thereby reduce the amount of cash or other property otherwise distributable to such Member. If an amount
required to be withheld was not withheld, the Investing Pool may reduce subsequent distributions by the amount of such required withholding. The consent of the Members shall not be required for any such withholding. In the event of any claimed
over-withholding, Members shall be limited to an action against the applicable jurisdiction. 
 
Section 6.6 Confidentiality; Third Party Beneficiary. Each Member waives all confidentiality rights, including all confidentiality rights provided by Section 3406(f) of the Code and Treasury Regulations
Section 31.3406(f)-1, with respect to any representations, forms, documents or information, and any information contained in such representations, forms or documents, that the Member provides, or has provided, to any broker or nominee through
which it owns an Investing Pool Interest, to the extent such representations, forms, documents or information may reasonably be requested by the Investing Pool to assist it in determining the extent of, or fulfilling (i) its tax reporting
obligations pursuant to Section 6.1(b) of this Agreement or (ii) its withholding and backup withholding tax obligations pursuant to Section 6.5 of this Agreement with respect to such Member’s Investing Pool Interest. Furthermore,
the parties hereto acknowledge and agree that any broker or nominee through which a Member owns an Investing Pool Interest shall be a third party beneficiary to this Agreement for the purposes set forth in Section 6.1(b), Section 6.5 and
this Section 6.6 of this Agreement. 
 
Section 6.7 Compliance by Beneficial Owners. To the extent any Beneficial Owner is treated as the direct owner of an Investing Pool Interest for U.S. federal income tax purposes, such Beneficial Owner shall comply
with the provisions of this Article VI as if it were a Member. In addition, by acquiring a beneficial ownership interest in an Investing Pool Interest, a Beneficial Owner shall be deemed to consent as a condition of receiving such beneficial
ownership interest to comply with the provisions of Section 6.1(b), Section 6.5 and Section 6.6 of this Agreement. 
  

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ARTICLE VII 
 TRANSFERS OF INVESTING POOL INTERESTS 
 
Section 7.1 Transfers of Investing Pool Interests. No Member may offer, sell, contract to sell, pledge, assign or otherwise transfer, directly or indirectly, any of its Investing Pool Interests without the prior
written consent of the other Member; provided, however, Member B may sell, assign or otherwise transfer any of its Investing Pool Interests without the prior written consent of Member A to any non-natural Person that is an Affiliate of
Barclays Global Investors International, Inc. (a “Substitute Member”). Any attempted transfer in violation of this Section 7.1 shall be deemed to be, to the fullest extent permitted by law, null and void and shall not be
recognized by the Investing Pool. No transfer of Investing Pool Interests in accordance with the terms of this Agreement shall be deemed to be effective until recorded upon the books and records of the Investing Pool. 
 
ARTICLE VIII 
 DISSOLUTION, LIQUIDATION AND TERMINATION 
 
Section 8.1 No Dissolution. The Investing Pool shall not be dissolved by the admission of Members. The death, insanity, retirement, resignation, expulsion or dissolution of any Member, or the occurrence of any
other event that terminates the continued membership of a Member in the Investing Pool, shall not in and of itself cause the Investing Pool to be dissolved or its affairs to be wound up. Upon the occurrence of any such event, to the fullest extent
permitted by law, the business of the Investing Pool shall be continued without dissolution. The bankruptcy (as defined in Sections 18-101(1) and 18-304 of the Act) of a Member shall not cause such Member to cease to be a member of the Investing
Pool, and upon the occurrence of such an event, the Investing Pool shall continue without dissolution. 
 
Section 8.2 Events Causing Dissolution. The Investing Pool shall be dissolved and its affairs shall be wound up upon the first to occur of the following: (a) the entry of a decree of judicial dissolution under
Section 18-802 of the Act, (b) at any time the Manager determines that dissolving the Investing Pool is desirable, or (c) the termination of the legal existence of the last remaining member of the Investing Pool or the occurrence of
any other event that terminates the continued membership of the last remaining member of the Investing Pool in the Investing Pool unless the Investing Pool is continued without dissolution in a manner permitted by the Act. 
 
Section 8.3 Notice of Dissolution. Upon the dissolution of the Investing Pool, the Manager shall promptly notify the Members of such dissolution. 
 
Section 8.4 Liquidation. Upon dissolution of the Investing Pool, the Manager, as liquidating trustee, shall immediately commence to wind up the Investing Pool’s affairs; provided, however, that a
reasonable time shall be allowed for the orderly liquidation of the assets of the Investing Pool and the satisfaction of liabilities to creditors so as to minimize the losses attendant upon liquidation. 
  

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Section 8.5 Termination. Upon the completion of the winding up, liquidation and distribution of the assets of the Investing Pool, the Manager shall or shall cause a certificate of cancellation to the Certificate to
be filed in accordance with the Act. The existence of the Investing Pool as a separate legal entity shall continue until cancellation of the Certificate as provided in the Act. 
 
ARTICLE IX 
 MISCELLANEOUS 
 
Section 9.1 Binding Effect; Entire Agreement. Except as otherwise provided in this Agreement, every covenant, term and provision of this Agreement is binding upon and inures to the benefit of the Members and their
respective personal representatives, successors and permitted assigns. This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written
or oral, relating to such subject matter in any way. 
 
Section 9.2 Amendments. This Agreement may not be amended, supplemented or repealed other than as agreed to in writing by the Members. 
 
Section 9.3 Governing Law; Severability. This Agreement is governed by and is to be construed in accordance with the laws of the State of Delaware. In particular, this Agreement shall be construed to the
maximum extent possible to comply with all of the terms and conditions of the Act. If, nevertheless, a court of competent jurisdiction determines that any provisions or wording of this Agreement is invalid or unenforceable under the Act or other
applicable law, such invalidity or unenforceability shall not invalidate the entire Agreement. In that case, this Agreement shall be construed so as to limit any term or provision so as to make it enforceable or valid within the requirements of
applicable law, and, in the event that such term or provision cannot be so limited, this Agreement shall be construed to omit such invalid or unenforceable term or provision. If a court of competent jurisdiction determines that any provision
relating to distributions is invalid or unenforceable, this Agreement shall be construed or interpreted so as (a) to make it enforceable or valid and (b) to make the distributions as closely equivalent to those set forth in this Agreement
as is permissible under applicable law. 
 
Section 9.4 Consent to Jurisdiction. The Members hereby (i) irrevocably submit to the non-exclusive jurisdiction of any Delaware state court or federal court sitting in Wilmington, Delaware in any action
arising out of or relating to this Agreement, and (ii) to the fullest extent permitted by law, consent to the service of process by mail. Nothing herein shall affect the right of any party to serve legal process in any manner permitted by law
or affect its right to bring any action in any other court. Each party agrees that, in the event that any dispute arising from or relating to this Agreement becomes subject to any judicial proceeding, such party, to the fullest extent permitted by
applicable law, waives any right it may otherwise have to (a) seek punitive or consequential damages, or (b) request a trial by jury. 
 
Section 9.5 Relationship Between this Agreement and the Act. Regardless of whether any provision of this Agreement specifically refers to particular Default Rules, (a) if any provision of this Agreement
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controls and the Default Rule is modified or negated accordingly, and (b) if it is necessary to construe a Default Rule as modified or negated in order
to effectuate any provision of this Agreement, the Default Rule is modified or negated accordingly. For purposes of this Section 9.5, “Default Rule” means a rule stated in the Act that may be negated or modified by law
and that applies except to the extent it is negated or modified through the provisions of a limited liability company’s operating agreement. 
 
Section 9.6 Exculpation. To the fullest extent permitted by applicable law, no Member (including a Member acting as a Manager) or any of its agents or officers shall have personal liability to the Investing Pool or
any other Member for monetary damages for breach of fiduciary duty (if any) or any act or omission performed or omitted by any such person in good faith on behalf of the Investing Pool, except for such person’s gross negligence or willful
misconduct. Except to the extent provided for in this Section 9.6 or as required by the Act, the Members shall not be liable under a judgment, decree, or order of a court, or in any other manner, for any debt, obligation, or liability of
the Investing Pool. 
 
Section 9.7 Indemnification. To the fullest extent permitted by applicable law, each Member, the Manager, the officers, any agents and any delegatee of the Investing Pool (collectively,
“Indemnitees”) are entitled to indemnification from the Investing Pool for any loss, damage, claim or expense (including reasonable attorney’s fees) incurred by such Indemnitee by reason of any act or omission performed or
omitted by such Indemnitee on behalf of the Investing Pool; provided, however, that there is no obligation to pay any Indemnitee for amounts incurred as a result of and attributable to such person’s gross negligence, bad faith or
willful misconduct; and provided, further that any indemnity under this Section 9.7 shall be provided out of and only to the extent of the Investing Pool’s assets, and no Member shall have any personal liability on
account thereof. The right to indemnification provided under this Section 9.7 shall continue as to any person who has ceased to be an officer, agent or delegate of the Investing Pool and shall inure to the benefit of the heirs, executors
and administrators of such person. The right to indemnification under this Section 9.7 is a contract right. The Investing Pool may purchase and maintain insurance to protect any officer, agent or delegatee of the Investing Pool against
liability asserted against him or her, or incurred by him or her, arising out of his or her status as such, to the fullest extent permitted by applicable law. 
 
Section 9.8 Notices. (a) All notices given under this Agreement must be in writing. 
 (b) Any notice
to be given to the Investing Pool or to the Manager shall be deemed to have been duly given (i) when it is actually delivered by a messenger or a recognized courier service, (ii) five (5) 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 or facsimile number set
forth below: 
  

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 To the Investing Pool: 
 iShares® S&P GSCITM Non-Energy Commodity-Indexed Investing Pool LLC 
 45 Fremont Street 
 San Francisco, CA 94105 
 Attention:
[                    ] 
 Facsimile:
[                    ] 
 To the Manager:

 Barclays Global Investors International, Inc. 
 45 Fremont Street 
 San Francisco, CA 94105 
 Attention: [                    ] 
 Facsimile: [                    ] 
 (c) If given to any Member, at its address or facsimile number set forth in the books and records of the Investing Pool. Any notice to be given to a
Member shall be deemed to have been duly given (i) when it is actually delivered by a messenger or a recognized courier service, (ii) five (5) 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. 
 
Section 9.9 Headings. The titles of the Articles and the headings of the Sections of this Agreement are for convenience of reference only and are not to be considered in construing the terms and provisions of this
Agreement. 
 
Section 9.10 Counterparts. This Agreement may be executed in any number of counterparts, each of which is deemed to be an original and all of such counterparts constitute one and the same agreement. 
 
Section 9.11 Books and Records. The Investing Pool shall maintain as part of its books and records Annex A hereto listing the names of the Members, their respective capital contributions and their ownership
of Investing Pool Interests. Such Annex A, as amended from time to time in accordance with this Agreement, is conclusive as to the identity of the Members and their ownership of Investing Pool Interests. 
 [Signature Page Follows] 
  

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 IN WITNESS WHEREOF, the undersigned have duly executed this Agreement as of the day and year first set
forth above. 
  

			
	 iSHARES® S&P GSCITM NON-ENERGY COMMODITY-INDEXED TRUST

		
	By:	 	  
		 	Name:
		 	Title:

  
  

			
	 BARCLAYS GLOBAL INVESTORS INTERNATIONAL, INC.

		
	By:	 	  
		 	Name:
		 	Title:

  
  
  

Table of Contents

 
ANNEX A 
 INITIAL CAPITAL CONTRIBUTIONS 
  

 A-1Form of Authorized Participant Agreement.

 EXHIBIT 4.3 
 AUTHORIZED PARTICIPANT AGREEMENT 
 AUTHORIZED PARTICIPANT AGREEMENT (this “Agreement”) dated as of
[            ] among (i) [            ], a [            ]
organized under the laws of [            ] (the “Authorized Participant”), (ii) Barclays Global Investors, N.A., a national banking association acting in its capacity
as trustee (in such capacity, the “Trustee”) of each of one or more trusts (each, a “Trust”) set forth in Schedule 3 hereto and (iii) Barclays Global Investors International, Inc., a Delaware corporation, in
its capacity as sponsor of each such Trust (in such capacity, the “Sponsor”). 
 R E C I T A L S 
 A. Pursuant to the provisions of the applicable trust agreement governing each Trust (as in effect from time to time, the “Trust
Agreement”), a Trust may from time to time issue or redeem equity securities representing an interest in the assets of such 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 respect to the Trust. 
 B. [                    ] has requested to become an
“Authorized Participant” (as such term is defined in the applicable Trust Agreements) with respect to the Trusts, 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 each Trust in compliance with its 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”). All creation orders and redemption orders (collectively, “Orders”) with respect to a Trust shall be
placed and executed in accordance with the related Trust Agreement as supplemented by the Procedures. 
 Section 2. Incorporation of
Standard Terms. The Standard Terms attached hereto as Schedule 2 (the “Standard Terms”) 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 a Trust Agreement, the provisions of
the Trust Agreement shall control for the relevant Trust. 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
Exhibit A is a certificate listing the Authorized Representatives of the Authorized Participant. 
 Section 5. 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:

	
	 Barclays Global Investors, N.A.

	 c/o Investors Bank & Trust

	 200 Clarendon Street

	 Attn: Transfer Agency Dept. - 29th Floor

	 Boston, MA 02116

	
	 Telephone: (800) 474-2737

	 Facsimile:   (617) 204-8121

	
	 If to the Sponsor:

	
	 Barclays Global Investors International, Inc.

	 45 Fremont Street

	 San Francisco, CA 94105

	 Attn: Product Management Team, Intermediary Investors and Exchange Traded Products Group

	 Telephone: (415) 402-4671

	 Facsimile: (415) 618-5097

	
	 with a copy to:

	
	 Barclays Global Investors, N.A.

	 45 Fremont Street

	 San Francisco, CA 94105

	 Attn: Legal Department

	 Telephone: (415) 597-2860

	 Facsimile: (415) 597-2753

	
	 (ii)    If to the Authorized Participant:

	
	 [                    ]

	 Address:

	 Attention:

	 Telephone:

	 Facsimile:

 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 6. 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 supercedes 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 person on whose behalf the Authorized Participant holds
iShares, 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 

  

 2 

 
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. Notwithstanding the foregoing, Schedule 3 to this Agreement will not be amended to include additional Trusts without the written consent of the Authorized Participant.

 Section 7. Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of New
York, without reference to the choice of law provisions thereof. 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 8. 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 party hereto which 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 a Trust Agreement shall automatically become a party hereto and shall assume all the obligations, and be entitled to all the rights and remedies of the Trustee
hereunder with respect to the related Trust. 
 Section 9. 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. 
 Section 10. Separate
Trusts. Unless the context otherwise requires, the provisions of this Agreement (including Schedules 1 and 2 hereto) shall apply severally in respect of each Trust. No Trust (or the Sponsor or Trustee acting on its behalf) shall have any
liability, responsibility or obligation with respect to any other Trust under or in respect of this Agreement (including such Schedules). 
  

 3 

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

											
	 BARCLAYS GLOBAL INVESTORS, N.A., in
 its capacity as Trustee of each Trust
	 		 		 	
						
	By:	 	  
	 		 	By:	 	  
	 	
	Name:	 		 		 	Name:	 		 	
	Title:	 		 		 	Title:	 		 	
				
	 BARCLAYS GLOBAL INVESTORS
 INTERNATIONAL, INC., in its capacity as
 Sponsor of each Trust 
	 		 		 	
						
	By:	 	  
	 		 	By:	 	  
	 	
	Name:	 		 		 	Name:	 		 	
	Title:	 		 		 	Title:	 		 	
					
	[AUTHORIZED PARTICIPANT]	 		 		 		 	
						
	By:	 	  
	 		 		 		 	
	Name:	 		 		 		 		 	
	Title:	 		 		 		 		 	

 Schedule 1 
 CREATION AND REDEMPTION PROCEDURES 

 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® GS SUBSECTOR TRUSTS 
 CREATION AND REDEMPTION PROCEDURES 
 adopted by the Sponsor and the Trustee (each as defined below) as of
[            ], 2007 
 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 Participant Client” shall mean any party on whose behalf the Authorized Participant acts in connection with an Order (whether a customer
or otherwise). 
 “Authorized Representative” shall mean, with respect to an Authorized Participant, each individual who, pursuant to the
provisions of the Authorized Participant Agreement between such Authorized Participant 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 mean, with respect to a Trust, 50,000 iShares (or such number as shall be designated pursuant to the applicable Trust Agreement for the
relevant Trust). 
 “Basket Constituents” shall mean, with respect to a Trust, for each Business Day, a basket of financial instruments
published by the Trustee in respect of such Business Day consisting of a specified number of CERFs together with cash, U.S. Treasury securities or other Short-Term Securities. 
 “Business Day” shall mean any day (1) on which none of the following occurs: (a) the New York Stock Exchange is closed for regular trading (b) the Chicago Mercantile Exchange is closed
for regular trading or (c) the Federal Reserve wire transfer system is closed for cash wire transfers, or (2) that the Trustee determines that it is able to conduct business. 
 “CERFs” mean, with respect to a Trust, the futures contracts on the applicable S&P GSCITM subsector excess return index listed on the Chicago Mercantile Exchange, as set forth in the applicable Trust Agreement. 
 “Code” shall mean the Internal Revenue Code of 1986, as amended. 
 “Creation” means the process that begins when an Authorized Participant first indicates to the Creation and Redemption Agent its intention to purchase
one or more Baskets of a Trust pursuant to these Procedures and concludes with the issuance by the Trustee and Delivery to such Authorized Participant of the corresponding number of iShares of such Trust. 
  

 S1-1 

 “Creation and Redemption Agent” means SEI Distribution Co., a Pennsylvania corporation, or any successor
thereto appointed by the Trustee as the Trustee’s agent for effecting Creations and Redemptions with Authorized Participants. 
 “Creation and
Redemption Line” shall mean a telephone number designated as such by the Creation and Redemption Agent and communicated to each Authorized Participant in compliance with the notice provisions of the respective Authorized Participant
Agreement. 
 “Custodian Day” shall mean a day on which the Custodian is open for business. 
 “Custodian” shall mean, with respect to a Trust, Goldman Sachs & Co., a limited partnership organized under the laws of the state of New York,
in its capacity as futures commission merchant for the related Investing Pool, and any successor thereto or additional custodian appointed by such Investing Pool. 
 “Deliver” means full delivery of constituents of a Basket to or from (as the context may be require) the applicable Investing Pool’s account at the Settlement Agent or the Custodian. 
 “DTC” shall mean The Depository Trust Company, its nominees and their respective successors. 
 “EFP” shall mean an exchange of futures for physicals that involves contemporaneous transactions in futures contracts and the underlying cash commodity
or a closely related commodity. 
 “iShares” shall mean, with respect to a Trust, shares issued by the Trustee representing fractional,
undivided interests in the net assets of such Trust. 
 “Initial Creation” shall mean the initial creation
of iShares of a Trust pursuant to the provisions of Section 2.01. 
 “Investing Pool” means, with respect to a Trust, the limited
liability company whose membership interests constitute the principal asset of such Trust, as set forth in the applicable Trust Agreement. 
 “Order
Cut-Off Time” shall mean 2:40 p.m. (New York time) or, on any day that the Chicago Mercantile Exchange is scheduled to close early, the time of the close of trading in CERFs on the Chicago Mercantile Exchange on such day. 
 “Order Date” shall have the meaning ascribed to the term in the applicable Trust Agreement. 
 “Purchase Order” shall mean an order to purchase one or more Baskets. 
 “Redemption” shall mean the process that begins when an Authorized Participant first indicates to the Creation and Redemption Agent its intention to
redeem one or more Baskets of a Trust pursuant to these Procedures and concludes with Delivery by the Trustee of the corresponding Basket Constituents with respect to such Trust or cash to such Authorized Participant. 
 “Redemption Order” shall mean an order to redeem one or more Baskets. 
 “Settlement Agent” shall mean Investors Bank & Trust Company, a Massachusetts banking corporation, or successor thereto appointed by the
Trustee as the Trustee’s agent for settling Creations and Redemptions with Authorized Participants 
  

 S1-2 

 “Short-Term Securities” shall mean U.S. Treasury securities or other short-term securities and similar
securities, in each case that are eligible as margin deposits under the rules of the CME. 
 “Sponsor” shall mean Barclays Global Investors
International, Inc., a Delaware corporation, in its capacity as sponsor under each Trust Agreement. 
 “Treasury regulations” shall mean the
regulations promulgated under the Code, as amended from time to time (including any successor regulations). 
 “Trustee” shall mean Barclays
Global Investors, N.A., a national banking association, in its capacity as Trustee under each Trust Agreement, and any successor thereto in compliance with the provisions thereof. 
 “Trust” shall have the meaning set forth in the Authorized Participant Agreement. 
 “Trust
Agreement” shall have the meaning set forth in the Authorized Participant Agreement. 
 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 a Trust Agreement, the terms of such Trust Agreement shall control with respect to the related Trust. 
 ARTICLE II 
 CREATION PROCEDURES 

Section 2.01. Initial Creation of iShares. The initial creation of iShares of a Trust will take place in compliance with such procedures
as the Trustee, the Sponsor and the Initial Purchaser may agree. 
 Section 2.02. Subsequent Creation of iShares. After the
Initial Creation, the issuance and Delivery of iShares of a Trust shall take place only in integral numbers of Baskets in compliance with the following rules: 
 a. Authorized Participants wishing to acquire from the Trustee one or more Baskets shall place a Purchase Order with the Creation and Redemption Agent on any Business Day. Purchase Orders received by the Creation and
Redemption Agent prior to the Order Cut-Off Time on a Business Day shall have such Business Day as the Order Date. Purchase Orders received by the Creation and Redemption Agent on or after the Order Cut-Off Time on a Business Day shall be considered
received at the opening of business on the next Business Day and shall have as their Order Date such next Business Day. 
  

 S1-3 

 b. For purposes of paragraph “a” above, a Purchase Order shall be deemed “received”
by the Creation and Redemption Agent only when each of the following has occurred: 
 (i) An Authorized Representative shall have placed a
telephone call to the Creation and Redemption Line informing the Creation and Redemption Agent that the Authorized Participant wishes to place a Purchase Order for a specified number of Baskets. 
 (ii) The Creation and Redemption Agent shall have sent, via facsimile or electronic mail message, an affirmation to the Authorized Participant that a
Purchase Order for a specified number of baskets has been received by the Creation and Redemption Agent from an Authorized Representative for the Authorized Participant’s account. 
 c. The Creation and Redemption Agent (acting on behalf of, and in consultation with, the Trustee) shall have the absolute right to reject any Purchase
Order including, without limitation, (i) Purchase Orders that the Creation and Redemption Agent has determined are not in proper form, (ii) Purchase Orders that the Trustee has determined would have adverse tax or other consequences to the
applicable Trust or Investing Pool or to owners of iShares, or (iii) Purchase Orders the acceptance of which would, in the opinion of counsel to the Sponsor, the Trustee, the Creation and Redemption Agent or the Settlement Agent, result in a
violation of law. Neither the Creation and Redemption Agent nor the Trustee shall be liable to any person for rejecting a Purchase Order. Should the Creation and Redemption Agent elect to accept the Purchase Order, it shall communicate its decision
by sending to the Authorized Participant, via facsimile or electronic mail message, no later than 7:00 p.m. (New York time) on the same Business Day for such Purchase Order a confirmation from the Creation and Redemption Agent of the accepted
Purchase Order. Prior to the transmission of the Creation and Redemption Agent’s confirmation of acceptance, a Purchase Order will only represent the Authorized Participant’s unilateral offer to deposit the Basket Constituents in exchange
for one or more Baskets and will have no binding effect upon the applicable Trust, the Trustee, the Creation and Redemption Agent or any other party. 
 d. On the first Business Day following the Order Date corresponding to a Purchase Order, or on such other 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 written instructions to the Settlement Agent, provided
that, by 11:00 a.m. (New York time) on the date such issuance is to take place: 
 (i) the Custodian shall have provided confirmation to the
Settlement Agent that the EFPs in connection with any CERFs included in the Basket Constituents have been properly matched and effected in the books and records of the clearinghouse; and 
 (ii) the Settlement Agent shall have received from the Authorized Participant (1) delivery of any cash or Short-Term Securities in the Basket
Constituents and a transaction fee per Basket in the amount of US$6.50 multiplied by the number of CERFs included in the Basket Constituents and, (2) in the case of a Basket created solely for cash, additional issuance costs determined by the
Creation and Redemption Agent, including the costs to the applicable Investing Pool of establishing the corresponding CERF position); and 
 (iii) any other conditions to the issuance under the applicable Trust Agreement shall have been satisfied. 
  

 S1-4 

 e. In the event that, by 11:00 a.m. (New York time) on the first Business Day following the Order Date of
a Purchase Order governed by paragraph “d” above, the Custodian is unable to confirm the Authorized Participant’s transfer of the Basket Constituents corresponding to the total number of Baskets ordered pursuant to such Purchase
Order, the Settlement Agent may cancel such Purchase Order and will send via fax or electronic mail message notice of such cancellation to the respective Authorized Participant and the Custodian. 
 f. In all other cases, the Trustee shall issue the aggregate number of iShares of the applicable Trust corresponding to the Baskets ordered by the
Authorized Participant and instruct the Settlement Agent to deliver them by credit to the account at DTC which the Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent on the Business Day on
which the conditions set forth in clauses (i) to (iii) of paragraph “d” above shall have been met. 
 ARTICLE III

 REDEMPTION PROCEDURES 
 Section 3.01. Redemption of iShares. Redemption of iShares of a Trust shall take place only in integral numbers of Baskets in compliance with the following rules: 
 a. Authorized Participants wishing to redeem one or more Baskets shall place a Redemption Order with the Creation and Redemption Agent on any Business
Day. Only Redemption Orders received by the Creation and Redemption Agent prior to the Order Cut-Off Time on a Business Day shall have such Business Day as the Order Date. Redemption Orders received by the Creation and Redemption Agent on or after
the Order Cut-Off Time on any Business Day shall be considered received at the opening of business on the next Business Day and shall have as their Order Date such next Business Day. 
 b. For purposes of paragraph “a” above, a Redemption Order shall be deemed “received” by the Creation and Redemption Agent only when
each of the following has occurred: 
 (i) An Authorized Representative shall have placed a telephone call to the Creation and Redemption Line
informing the Creation and Redemption Agent that the Authorized Participant wishes to place a Redemption Order for a specified number of Baskets. 
 (ii) The Creation and Redemption Agent shall have sent, via facsimile or electronic mail message, an affirmation to the Authorized Participant that a Redemption Order for a specified number of Baskets has been received by the Creation and
Redemption Agent from an Authorized Representative for the Authorized Participant’s account. 
 c. The Creation and Redemption Agent
(acting on behalf of, and in consultation with, the Trustee) shall have the absolute right to reject any Redemption Order, including without limitation, (i) Redemption Orders that the Creation and Redemption Agent has determined are not in
proper form, (ii) Redemption Orders the acceptance of which would, in the opinion of counsel to the Sponsor, the Trustee or the Creation and Redemption Agent, result in a violation of law, or (ii) during any period in which circumstances
make transactions in, or settlement or delivery of, CERFs impossible or impractical. Neither the Creation and Redemption Agent nor the Trustee shall be liable to any person for rejecting a Redemption Order. Should the Creation and Redemption Agent
(acting on behalf of, and in consultation with, the Trustee) elect to accept such Redemption Order, it shall communicate its decision to the Authorized Participant by sending to the Authorized Participant, via facsimile or electronic mail message,
no later than 7:00 p.m. (New York time) on the same Business Day for such Redemption Order, a confirmation of the Creation and Redemption Agent’s acceptance of the Redemption Order. 
  

 S1-5 

 d. Provided that by 11:00 a.m. (New York time) on the first Business Day following the Order Date of a
Redemption Order: 
 (i) the Authorized Participant has delivered to the Settlement Agent’s account at DTC the total number of iShares to
be redeemed by such Authorized Participant pursuant to such Redemption Order; and 
 (ii) any other conditions to the redemption under the
applicable Trust Agreement have been satisfied, 
 the Custodian and Settlement Agent will, as applicable, on such day, at the locations and in the amounts
specified in the communication sent in compliance with paragraph “c” above, credit the account(s) of the redeeming Authorized Participant specified in such confirmation with the applicable Basket Constituents. Upon such Delivery, the
Settlement Agent will then cancel the iShares so redeemed on behalf of the Trustee. 
 e. In connection with any Redemption Order, the
Authorized Participant authorizes the Settlement Agent to deduct a transaction fee per Basket in the amount of US$6.50 multiplied by the number of CERFs included in the Basket Constituents from the applicable Basket Constituents credited to the
applicable account of the redeeming Authorized Participant. 
 f. In the event that, by 11:00 a.m. (New York time) on the first Business Day
following the Order Date of a Redemption Order governed by paragraph “d” above, Settlement Agent’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 Settlement Agent may 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. 
 g. In all other cases, Delivery must be completed by the Settlement Agent and Custodian as soon as, in the reasonable judgment of the Settlement Agent,
it is practicable. 
  

 S1-6 

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

											
	 BARCLAYS GLOBAL INVESTORS, N.A., in
 its capacity as Trustee of each Trust
	 		 		 	
						
	By:	 	  
	 		 	By:	 	  
	 	
	Name:	 		 		 	Name:	 		 	
	Title:	 		 		 	Title:	 		 	
				
	 BARCLAYS GLOBAL INVESTORS
 INTERNATIONAL, INC., in its capacity as
 Sponsor of each Trust 
	 		 		 	
						
	By:	 	  
	 		 	By:	 	  
	 	
	Name:	 		 		 	Name:	 		 	
	Title:	 		 		 	Title:	 		 	

 Schedule 2 
 Standard Terms 
 STANDARD TERMS FOR AUTHORIZED PARTICIPANT AGREEMENTS (the “Standard Terms”)
agreed to as of [            ], 2007 by and between Barclays Global Investors, N.A., a national banking association, 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 of each Trust in compliance with the provisions of the related Trust
Agreement. 
 Section 1.02. Procedures for Orders. Each party hereto agrees to comply with the provisions of the applicable 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 Creation and Redemption Agent, the Settlement Agent 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 Creation and Redemption Agent of an Order shall be irrevocable; provided that each of the Trustee and the Sponsor reserves the right to reject any Order in compliance with the provisions of the applicable Trust Agreement. 
 Section 1.05. Costs and Expenses. The Authorized Participant shall be responsible for any and all expenses and costs incurred by the
applicable Trust in connection with any Orders, including, without limitation, any transaction fees or interest or funding cost incurred by such Trust in connection with the Authorized Participant’s failure to timely settle any Order.

 Section 1.06. Delivery of Property to a Trust. The Authorized Participant understands and agrees that in the event Basket
Constituents are not transferred to the applicable Trust by the time specified in the Purchase Order and in compliance with the Procedures and the related Trust Agreement, a Purchase Order may be cancelled by the Creation and Redemption Agent and
the Authorized Participant will be solely responsible for all costs incurred by such Trust, the Trustee or the Custodian related to the cancelled Order. 
 Section 1.07. Title to Basket Constituents 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 applicable Trust the
corresponding Basket Constituents, and that upon delivery of the Basket Constituents to the Custodian and/or Settlement Agent in accordance with the Procedures, the related Investing Pool 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 (other than those in favor of the Custodian or the CME clearinghouse) and not subject to any adverse claims or transferability restrictions, whether
arising by operation of law or otherwise; and 
  

 S2-1 

 b. in connection with a Redemption Order, the Authorized Participant will have full power and authority
to surrender to the Settlement Agent for redemption the corresponding iShares, and upon such surrender the applicable 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. 
 Section 1.08. Certain Payments or Distributions.

 a. With respect to any Purchase Order, the applicable Trust acknowledges and agrees to return to the Authorized Participant any payment,
distribution or other amount paid to such Trust in respect of any Basket Constituents transferred to such Trust that, based on the valuation of the Basket Constituents at the time of transfer, should have been paid to the Authorized Participant.
Likewise, the Authorized Participant acknowledges on behalf of itself and any Authorized Participant Client and agrees to return to such Trust any payment, distribution or other amount paid to the Authorized Participant or any Authorized Participant
Client in respect of any Basket Constituents transferred to such Trust that, based on the valuation of the Basket Constituents at the time of transfer, should have been paid to such 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 applicable 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 such Trust. Such 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 such Trust. Likewise, such 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 such 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 Trustee 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 Trustee as conclusive evidence of the facts set forth therein and shall be considered to be in full force and effect until (i) receipt by the
Trustee of a superseding certificate in a form approved by the Trustee bearing a subsequent date, or (ii) termination of the Authorized Participant Agreement. 
 Section 2.02. PIN Numbers. The Creation and Redemption Agent shall issue to each Authorized Participant a unique personal identification number (“PIN Number”) by which such 

  

 S2-2 

 
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 Creation and Redemption Agent, 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 Creation and Redemption Agent shall, as
promptly as practicable, de-activate the PIN Number. If an Authorized Participant’s PIN Number is changed, the new PIN Number will become effective on a date mutually agreed upon by the Authorized Participant and the Creation and Redemption
Agent. The Authorized Participant agrees that, absent the Creation and Redemption Agent’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 Trusts, the Trustee or the Creation and Redemption Agent 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 Creation and Redemption Agent 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 Creation and Redemption Agent and such notice shall be effective upon receipt by the Creation and Redemption Agent; and
(ii) request a new PIN Number. The Creation and Redemption Agent shall, as promptly as practicable, de-activate the PIN Number upon receipt of such written notice. 
 Section 2.04. Verification. The Creation and Redemption Agent may assume that all instructions issued to it using the Authorized Participant’s PIN Number have been properly placed by Authorized
Representatives, unless the Creation and Redemption Agent has actual knowledge to the contrary or the Authorized Participant has revoked its PIN Number. The Creation and Redemption Agent shall have no duty to verify that an Order has been placed by
an Authorized Representative. The Authorized Participant agrees that the Creation and Redemption Agent 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 Creation and Redemption Agent 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 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 Creation and Redemption Agent. 
 Section 3.02. Registration Status. The Authorized Participant represents and warrants that, unless Section 3.03 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 

  

 S2-3 

 
where it transacts business to the extent so required by applicable law, (iii) a member in good standing of the NASD and (iv) if required in
connection with its activities hereunder, registered as a futures commission merchant under the Commodity Exchange Act, as amended and a member in good standing of the National Futures Association. 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, that it will not offer or sell iShares in any state or jurisdiction where they may not lawfully be offered and/or sold, and without
limiting the foregoing that it will comply with any applicable transfer restrictions with respect to iShares set forth in the current prospectus for the relevant Trust. 
 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 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. Futures Account. The Authorized
Participant represents and warrants that it will arrange to receive any futures contracts owing to the Authorized Participant upon settlement of a Redemption Order at an account it establishes through a member of the Chicago Mercantile
Exchange’s associated clearing organization (which may include such Authorized Participant), and will maintain such an account at all times it is an Authorized Participant. The Authorized Participant will provide notice of such account to the
Settlement Agent in the upon request. 
 Section 3.05. 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 3.06. 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 any 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 for each Trust contains an
accurate and current listing of Authorized Participants for that Trust. 
  

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 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 any 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 person on whose behalf it holds iShares, 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 under 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 beneficial owner relating to positions in iShares for any Trust that the Authorized Participant may hold as record holder or that may be held through the Authorized Participant as a DTC Participant. 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 applicable 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 
 TAX MATTERS

 Section 5.01. Tax Basis of Assets Contributed Upon Creation. With respect to any Creation of iShares, the Authorized
Participant on behalf of itself and any Authorized Participant Client agrees that any property contributed in consideration for the creation of iShares shall have a basis for tax purposes equal to the fair market value of that property, and
acknowledges that the applicable Trust and Investing Pool will rely upon such fair market value basis for purposes of determining and allocating items of income, gain, loss, deduction, basis and other tax items. 
 Section 5.02. Tax Basis of Basket Constituents Received Upon Redemption. 
 a. With respect to any Redemption of iShares held by an Authorized Participant for its own account, the Authorized Participant acknowledges that the basis
for tax purposes in Basket Constituents that it receives from the applicable Trust in consideration for a redemption of iShares may be more or less than the fair market value of the Basket Constituents or the Authorized Participant’s basis in
the iShares 

  

 S2-5 

 
redeemed. The Authorized Participant will determine its basis for tax purposes in any Basket Constituent it receives from the applicable Trust in
consideration for a redemption of iShares by reference to the tax basis of such Basket Constituent on the books of the applicable Trust immediately prior to the redemption, as such amount is reported to the Authorized Participant by the Settlement
Agent, subject to adjustment as required under Section 732 or other applicable law. The Authorized Participant will report any built-in gain or loss on CERFs that it receives from the applicable Trust on redemption of iShares under the rules of
section 1256 of the Code (absent a valid election to do otherwise), and, to the extent applicable, will report any offsetting gain or loss on the remaining iShares held by the Authorized Participant under the rules of section 475 of the Code. The
Authorized Participant acknowledges that such reporting may result in a mismatch in the character or other tax attributes of gain or loss from CERFs and iShares. 
 b. With respect to any Redemption of iShares held by an Authorized Participant for an Authorized Participant Client, the Authorized Participant acknowledges on behalf of itself and such Authorized Participant Client
that the basis for tax purposes in Basket Constituents received from the applicable Trust in consideration for the redemption of iShares may be more or less than the fair market value of the Basket Constituents or the Authorized Participant
Client’s basis in the iShares redeemed. To the extent that the Authorized Participant reports to an Authorized Participant Client, the Internal Revenue Service or any other person the basis for tax purposes of any Basket Constituents it
receives from the applicable Trust in consideration for a redemption of iShares on behalf of an Authorized Participant Client, the Authorized Participant will determine its basis by reference to the tax basis of such Basket Constituents on the books
of the applicable Trust immediately prior to the redemption, as such amount is reported to the Authorized Participant by the Settlement Agent, subject to adjustment as required under Section 732 or other applicable law. The Authorized
Participant will report any other tax items of an Authorized Participant Client (e.g., basis in iShares, or gain or loss amounts) in a manner consistent with the preceding sentence. 
 c. The Authorized Participant acknowledges on behalf of itself and any Authorized Participant Client that, to the extent that such Participant or Client
is subject to the mark-to-market rules of section 475 of the Code, the basis of iShares and of any assets of the applicable Trust and Investing Pool shall be determined for purposes of sections 734(b) and 743(b) of the Code and for the purposes of
the provisions of this Article V by treating such mark-to-market as having no effect on such basis. 
 Section 5.03. Treatment of
Redemptions as Partial or Complete Redemptions. 
 a. The Authorized Participant represents with respect to each redemption of iShares
held by the Authorized Participant for its own account that the receipt of Basket Constituents from the applicable Trust in connection with such redemption is a distribution other than in liquidation of the Authorized Participant’s interest in
iShares (a “partial redemption”), unless it notifies the applicable Trust or its agent prior to the receipt of the Basket Constituents that such distribution is in liquidation of the Authorized Participant’s interest in iShares (a
“complete redemption”). The Authorized Participant acknowledges that the applicable Trust and Investing Pool may report gain or loss and other tax items including the allocation of basis and adjustments to basis in reliance upon the
assumption that any redemption of iShares is a partial redemption unless such notice is timely provided. The Authorized Participant will notify the applicable Trust or its agent within 5 Business Days of the receipt of the Basket Constituents of
(i) any gain or loss arising from a redemption of iShares by the Authorized Participant in exchange for Basket Constituents, and (ii) any difference between the tax basis of such Basket Constituents on the books of the applicable Trust
immediately prior to the redemption, as such amount is reported to the Authorized Participant, and the basis of the distributed Basket Constituents to the Authorized Participant (such gain or loss or basis difference, “section 734(b)
items”), in a manner sufficient for such Trust and the applicable Investing Pool to adjust the basis of undistributed property held by such Trust and such Investing Pool under section 734(b) of the Code. 
  

 S2-6 

 b. To the extent that an Authorized Participant acts on behalf of an Authorized Participant Client in
connection with a redemption of iShares, the Authorized Participant will inform the applicable Trust or its agent prior to the receipt of the Basket Constituents of any such redemption that constitutes a complete redemption, to the extent that such
information is available to the Authorized Participant (for example, because the Client redeems all iShares that it holds through the Authorized Participant). The Authorized Participant acknowledges on behalf of itself and any Authorized Participant
Client that redeems iShares that the applicable Trust and Investing Pool may report gain or loss and other tax items including the allocation of basis and adjustments to basis in reliance upon the assumption that any redemption of iShares is a
partial redemption unless such notice is timely provided. The Authorized Participant will make commercially reasonable efforts to assist the applicable Trust and Investing Pool in determining the amount of section 734(b) items, if any, with respect
to a redemption of iShares on behalf of an Authorized Participant Client. 
 Section 5.04. Tax Reporting. 
 a. An Authorized Participant will provide tax reporting information with respect to the applicable Trust and Investing Pool to or for the benefit of
taxpayers for whom the Authorized Participant holds iShares as a nominee as required by law. 
 b. An Authorized Participant will furnish
information to the applicable Trust and Investing Pool with respect to any taxpayer for whom the Authorized Participant holds iShares as a nominee as required under Treasury regulation section 1.6031(c)-1T or any successor thereto in addition to any
information required by other provisions of this Article V. 
 c. An Authorized Participant will use commercially reasonable efforts to
ensure that any taxpayer for whom the Authorized Participant holds iShares as a nominee has provided IRS Form W-9, W-8BEN, or other forms or documentation qualifying as a withholding certificate or documentary evidence or other appropriate
documentation within the meaning of Treasury regulation section 1.1441-1(c) or any successor thereto, as necessary to establish an exemption from withholding tax and backup withholding tax with respect to income of the applicable Trust and Investing
Pool allocable to such investor. The Authorized Participant will act as an agent of the applicable Trust and Investing Pool in collecting and holding such forms or documentation, and annually will provide a copy of such forms to such Trust or its
agent. Upon reasonable request by the applicable Trust or its agent, the Authorized Participant will provide the originals of such forms or documentation to the extent held by the Authorized Participant at that time and will assist such Trust in
obtaining such original forms or documentation (or, to the extent originals are not available, copies thereof) from investors or other nominees to the extent not held by the Authorized Participant. The provisions of this Section 5.04(c) of the
Authorized Participant Agreement are subject to, and may be modified by, any agreements between the Trustee, on behalf of the applicable Trust, and an Authorized Participant separate and apart from the Authorized Participant Agreement, that provide
otherwise. 
 ARTICLE VI 
 MARKETING MATERIALS AND REPRESENTATIONS 
 Section 6.01. 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 applicable Trust’s then current Prospectus or in any

  

 S2-7 

 
promotional materials or sales literature with respect to such Trust furnished to the Authorized Participant by the Sponsor. The Authorized Participant
agrees not to furnish or cause to be furnished to any person or display or publish any information or materials relating to iShares of a Trust (including, without limitation, promotional materials and sales literature, advertisements, press
releases, announcements, statements, posters, signs or other similar materials), except such information and materials with respect to such Trust as may be furnished to the Authorized Participant by the Sponsor and such other information and
materials with respect to such Trust as may be approved in writing by the Sponsor. The Authorized Participant understands that each 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 such Trusts. 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 are not used for purposes of marketing iShares and (ii) for internal use by the Authorized Participant. 
 Section 6.02. Prospectus. 
 a. The Sponsor will provide, or cause to be provided, to the
Authorized Participant copies of the then current Prospectus for each Trust 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 of any Trust 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 6.02 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. 
 b. The Authorized Participant represents and warrants to the Sponsor that it will deliver the then current Prospectus for a Trust upon any sale by it of
iShares of such Trust (other than a redemption) or, if applicable, a notice consistent with Rule 173 under the 1933 Act in lieu of a Prospectus, to the extent so required by applicable law. 
 ARTICLE VII 
 INDEMNIFICATION; LIMITATION OF LIABILITY 
 Section 7.01. Indemnification. The provisions of this Section 7.01 shall survive termination of the Agreement. 
 a. The Authorized Participant shall indemnify and hold harmless the Sponsor, the Trustee, each Trust, the Creation and Redemption Agent, the Custodian
(which the parties agree are third-party beneficiaries under this Subsection 7.01(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 applicable Trust Agreement); (ii) any failure on the part of the Authorized Participant to 

  

 S2-8 

 
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 VIII 

MISCELLANEOUS 
 Section 8.01.
Commencement of Trading. The Authorized Participant may not submit an Order with respect to iShares of a Trust until five Business Days after the date of execution of the Authorized Participant Agreement or, if applicable, the date of an
amendment of the Authorized Participant Agreement to include such Trust (or in any case such other date as may be designated by the Sponsor for such Trust). 
 Section 8.02. 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
(including the Procedures attached thereto) 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 Authorized Participant Agreement. 
 h. “DTC” means The Depository Trust Company. 
 i. “Indemnified Party” shall have the meaning ascribed to it in Section 7.01.a hereof. 
 j.
“iShares” shall have the meaning ascribed to it in the Authorized Participant Agreement. 
 k. “NASD” means the National
Association of Securities Dealers, Inc. 
 l. “Prospectus” means, with respect to a Trust, the Trust’s current prospectus
included in its effective registration statement, as supplemented or amended from time to time. 
  

 S2-9 

 m. All other capitalized terms used in these Standardized Terms and not otherwise defined shall have the
meaning ascribed to such terms in the Authorized Participant Agreement. 
 Section 8.03. Third Party Beneficiary. The parties
acknowledge and agree that the Creation and Redemption Agent shall be a third party beneficiary to the Authorized Participant Agreement, including but not limited to the rights set forth in Section 7.01 of the Standard Terms. 
  

 S2-10 

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

											
	 BARCLAYS GLOBAL INVESTORS, N.A., in
 its capacity as Trustee of each Trust
	 		 		 	
						
	By:	 	  
	 		 	By:	 	  
	 	
	Name:	 		 		 	Name:	 		 	
	Title:	 		 		 	Title:	 		 	
				
	 BARCLAYS GLOBAL INVESTORS
 INTERNATIONAL, INC., in its capacity as
 Sponsor of each Trust 
	 		 		 	
						
	By:	 	  
	 		 	By:	 	  
	 	
	Name:	 		 		 	Name:	 		 	
	Title:	 		 		 	Title:	 		 	

 Schedule 3 
 Trusts 

 Exhibit A 
 CERTIFICATE OF AUTHORIZED REPRESENTATIVES 
 Each of the following employees of [XYZ] (each, an “Authorized
Representative”) is authorized, in accordance with the Authorized Participant Agreement dated [            ] among [XYZ], the Sponsor and the Trustee, to submit Purchase Orders and
Redemption Orders on behalf and in the name of [XYZ] and to give instructions or any other notice or request on behalf of [XYZ] 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: 
 The undersigned, [name of secretary or authorized officer], [title] of [XYZ], 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:	 	

  

 A-1

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