Document:

Form 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”). 
 RECITALS 
 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. 
  

 S2-4 

 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-1Filed by Automated Filing Services Inc. (604) 609-0244 - MGN Technologies, Inc -- Exhibit 10.1

	MGN TECHNOLOGIES, INC. 
	2007 STOCK OPTION PLAN 
	  
	ARTICLE 1. THE PLAN 

	1.1 	Title 

This plan is entitled the “2007 Stock Option Plan” (the "Plan")
of MGN Technologies, Inc., a British Columbia corporation (the "Company”). 

	1.2 	Purpose 

The purpose of the Plan is to enhance the long-term stockholder
value of the Company by offering opportunities to directors, officers, employees
and eligible consultants of the Company and any Related Company, as defined
below, to acquire and maintain stock ownership in the Company in order to give
these persons the opportunity to participate in the Company's growth and
success, and to encourage them to remain in the service of the Company or a
Related Company.

ARTICLE 2. DEFINITIONS

The following terms will have the following meanings in the
Plan:

"Board" means the Board of Directors of the Company.

"Cause," unless otherwise defined in the
instrument evidencing the award or in an employment or services agreement
between the Company or a Related Company and a Participant, means a material
breach of the employment or services agreement, dishonesty, fraud, misconduct,
unauthorized use or disclosure of confidential information or trade secrets, or
conviction or confession of a crime punishable by law (except minor violations),
in each case as determined by the Plan Administrator, and its determination
shall be conclusive and binding.

"Code" means the Internal Revenue Code of 1986, as
amended from time to time.

"Common Shares" means the common shares, no par value,
of the Company.

"Consultant Participant" means a Participant who is
defined as a Consultant Participant in Article 5.

"Corporate Transaction," unless otherwise defined in the
instrument evidencing the Option or in a written employment or services
agreement between the Company or a Related Company and a Participant, means
consummation of either.

	(a) 	
      a merger or consolidation of the Company with or into any
      other corporation, entity or person or

	 	 
	(b) 	
      a sale, lease, exchange or other transfer in one
      transaction or a series of related transactions of all or substantially
      all the Company's outstanding securities or all or substantially all the
      Company's assets; provided, however, that a Corporate Transaction shall
      not include a Related Party Transaction.

"Disability," unless otherwise defined by the
Plan Administrator, means a mental or physical impairment of the Participant
that is expected to result in death or that has lasted or is expected to last
for a continuous period of 12 months or more and that causes the Participant to
be unable, in 

1

the opinion of the Company, to perform his or her duties for
the Company or a Related Company and to be engaged in any substantial gainful
activity.

"Employment Termination Date" means, with respect to a
Participant, the first day upon which the Participant no longer has an
employment or service relationship with the Company or any Related Company.

"Exchange Act" means the Securities Exchange Act of
1934, as amended.

"Fair Market Value" means the per share value of the
Common Shares determined as follows (a) if the Common Shares are listed on an
established stock exchange or exchanges or the NASDAQ National Market, the
closing price per share on the last trading day immediately preceding such date
on the principal exchange on which it is traded or as reported by NASDAQ; (b) if
the Common Shares are not then listed on an exchange or the NASDAQ National
Market, but is quoted on the NASDAQ Small Cap Market, the NASDAQ electronic
bulletin board or the National Quotation Bureau pink sheets, the average of the
closing bid and asked prices per share for the Common Shares as quoted by NASDAQ
or the National Quotation Bureau, as the case may be, on the last trading day
immediately preceding such date; or (c) if there is no such reported market for
the Common Shares for the date in question, then an amount determined in good
faith by the Plan Administrator. 

"Grant Date" means the date on which the Plan
Administrator completes the corporate action relating to the grant of an Option
or such later date specified by the Plan Administrator, and on which all
conditions precedent to the grant have been satisfied, provided that conditions
to the exercisability or vesting of Options shall not defer the Grant Date.

"Incentive Stock Option" means an Option granted with
the intention, as reflected in the instrument evidencing the Option, that it
qualify as an "incentive stock option" as that term is defined in Section 422 of
the Code.

"Nonqualified Stock Option" means an Option other than
an Incentive Stock Option. "Option" means the right to purchase Common
Shares granted under Article 7. "Option Expiration Date" has the meaning
set forth in Article 7.6.

"Option Term" has the meaning set forth in Article
7.3.

"Participant" means the person to whom an Option is
granted and who meets the eligibility requirements imposed by Article 5,
including Consultant Participants, as defined in Article 5.

"Plan Administrator" has the meaning set forth in
Article 3.1.

"Related Company" means any entity that, directly or
indirectly, is in control of or is controlled by the Company.

"Related Party Transaction" means (a) a merger or
consolidation of the Company in which the holders of Common Shares immediately
prior to the merger hold at least a majority of the Common Shares in the
Successor Corporation immediately after the merger; (b) a sale, lease, exchange
or other transaction in one transaction or a series of related transactions of
all or substantially all the Company's assets to a wholly-owned subsidiary
corporation; (c) a mere reincorporation of the Company; or (d) a transaction
undertaken for the sole purpose of creating a holding company that will be owned
in substantially the same proportion by the persons who held the Company's
securities immediately before such transaction.

2

"Retirement," unless otherwise defined by the
Plan Administrator from time to time for purposes of the Plan, means retirement
on or after the individual's normal retirement date under the Company's 401(k)
plan or other similar successor plan applicable to salaried employees.

"Securities Act" means the Securities Act of 1933, as
amended.

"Successor Corporation" has the meaning set forth in
Article 11.3.1.

"Vesting Commencement Date" means the Grant Date or such
other date selected by the Plan Administrator as the date from which the Option
begins to vest for purposes of Article 7.4.

ARTICLE 3. ADMINISTRATION

	3.1 	Plan Administrator 

The Plan shall be administered by the Board or a committee
appointed by, and consisting of two or more members of, the Board (the "Plan
Administrator"). If and so long as the Common Shares are registered under
Section 12(b) or 12(g) of the Exchange Act, the Board shall consider in
selecting the members of any committee acting as Plan Administrator, with
respect to any persons subject or likely to become subject to Section 16 of the
Exchange Act, the provisions regarding (a) "outside directors" as contemplated
by Section 162(m) of the Code and (b) "nonemployee directors" as contemplated by
Rule 16b-3 under the Exchange Act. Committee members shall serve for such term
as the Board may determine, subject to removal by the Board at any time. At any
time when no committee has been appointed to administer the Plan, then the Board
will be the Plan Administrator. 

	3.2 	Administration and Interpretation by Plan
      Administrator 

Except for the terms and conditions explicitly set forth in the
Plan, the Plan Administrator shall have exclusive authority, in its discretion,
to determine all matters relating to Options under the Plan, including the
selection of individuals to be granted Options, the type of Options, the number
of Common Shares subject to an Option, all terms, conditions, restrictions and
limitations, if any, of an Option and the terms of any instrument that evidences
the Option. The Plan Administrator shall also have exclusive authority to
interpret the Plan and the terms of any instrument evidencing the Option and may
from time to time adopt and change rules and regulations of general application
for the Plan's administration. The Plan Administrator's interpretation of the
Plan and its rules and regulations, and all actions taken and determinations
made by the Plan Administrator pursuant to the Plan, shall be conclusive and
binding on all parties involved or affected. The Plan Administrator may delegate
administrative duties to such of the Company's officers as it so determines.

ARTICLE 4. STOCK SUBJECT TO THE PLAN 

	4.1 	Authorized Number of Shares
  

Subject to adjustment from time to time as provided in Article
11.1, the number of shares of Common Shares available for issuance under the
Plan shall be 10,000,000 common shares, no par value. 

	4.2 	Reuse of Shares 

Any Common Shares that have been made subject to an Option that
cease to be subject to the Option (other than by reason of exercise or
settlement of the Option to the extent it is exercised 

3

for or settled in shares) shall again be available for issuance
in connection with future grants of Options under the Plan. In the event shares
issued under the Plan are reacquired by the Company pursuant to any forfeiture
provision or right of repurchase, such shares shall again be available for the
purposes of the Plan; provided, however, that the maximum number of shares that
may be issued upon the exercise of Incentive Stock Options shall equal the share
number stated in Article 4.1, subject to adjustment from time to time as
provided in Article 11.1; and provided, further, that for purposes of Article
4.3, any such shares shall be counted in accordance with the requirements of
Section 162(m) of the Code.

	4.3 	Limitations 

Subject to adjustment from time to time as provided in Article
11.1, not more than an aggregate of 10,000,000 common shares shall be
available for issuance pursuant to grants of Stock Options under the Plan. 

ARTICLE 5. ELIGIBILITY 

An Option may be granted to any officer, director or employee
of the Company or a Related Company that the Plan Administrator from time to
time selects. An Option may also be granted to any consultant who provides
services to the Company or any Related Company or to any employee of such
consultant (a “Consultant Participant”), so long as such Consultant Participant
(a) is a natural person or an alter ego entity of the natural person providing
the services; (b) renders bona fide services to the Company that are not in
connection with the offer and sale of the Company's securities in a
capital-raising transaction; and (c) does not directly or indirectly promote or
maintain a market for the Company's securities.

ARTICLE 6. OPTIONS 

	6.1 	Form and Grant of Options

The Plan Administrator shall have the authority, in its sole
discretion, to determine the type or types of Options to be granted under the
Plan. Options may be granted singly or in combination.

	6.2 	Settlement of Options

The Company may settle Options through the delivery of Common
Shares, the granting of replacement Options or any combination thereof as the
Plan Administrator shall determine. Any Option settlement, including payment
deferrals, may be subject to such conditions, restrictions and contingencies as
the Plan Administrator shall determine. The Plan Administrator may permit or
require the deferral of any Option payment, subject to such rules and procedures
as it may establish, which may include provisions for the payment or crediting
of interest, or dividend equivalents, including converting such credits into
deferred stock equivalents.

ARTICLE 7. GRANTS OF OPTIONS 

	7.1 	Grant of Options 

The Plan Administrator shall have the authority, in its sole
discretion, to grant Options as Incentive Stock Options or as Nonqualified Stock
Options, which shall be appropriately designated.

	7.2 	Option Exercise Price

4

The exercise price for shares purchased under an Option shall
be as determined by the Plan Administrator, provided that: 

(a) the exercise price for Options granted to Participants
other than Consultant Participants but shall not be less than the minimum
exercise price required by Article 8.3 with respect to Incentive Stock Options
and shall not be less than 85% of Fair Market Value of the Common Shares on the
Grant Date with respect to Nonqualified Stock Options; 

(b) the exercise price for Options granted to Consultant
Participants shall not be less than the lesser of 85% of Fair Market Value of
the Common Shares on the Grant Date. 

	7.3 	Term of Options 

Subject to earlier termination in accordance with the terms of
the Plan and the instrument evidencing the Option, the maximum term of an Option
(the "Option Term") shall be as established for that Option by the Plan
Administrator or, if not so established, shall be ten years from the Grant
Date.

	7.4 	Exercise of Options 

The Plan Administrator shall establish and set forth in each
instrument that evidences an Option the time at which, or the installments in
which, the Option shall vest and become exercisable, any of which provisions may
be waived or modified by the Plan Administrator at any time.

The Plan Administrator, in its sole discretion, may adjust the
vesting schedule of an Option held by a Participant who works less than
"full-time" as that term is defined by the Plan Administrator or who takes a
Company-approved leave of absence.

To the extent an Option has vested and become exercisable, the
Option may be exercised in whole or from time to time in part by delivery to the
Company of a written stock option exercise agreement or notice, in a form and in
accordance with procedures established by the Plan Administrator, setting forth
the number of shares with respect to which the Option is being exercised, the
restrictions imposed on the shares purchased under such exercise agreement, if
any, and such representations and agreements as may be required by the Plan
Administrator, accompanied by payment in full as described in Article 7.5. An
Option may be exercised only for whole shares and may not be exercised for less
than a reasonable number of shares at any one time, as determined by the Plan
Administrator.

	7.5 	Payment of Exercise Price

The exercise price for shares purchased under an Option shall
be paid in full to the Company by delivery of consideration equal to the product
of the Option exercise price and the number of shares purchased. Such
consideration must be in accordance with the requirements of the British
Columbia Business Corporations Act and the Articles of Incorporation and Bylaws
of the Company, must be paid before the Company will issue the shares being
purchased and must be in a form or a combination of forms acceptable to the Plan
Administrator for that purchase.

	7.6 	Post-Termination Exercises

The Plan Administrator shall establish and set forth in each
instrument that evidences an Option whether the Option shall continue to be
exercisable, and the terms and conditions of such exercise, if the Participant
ceases to be employed by, or to provide services to, the Company or a Related
Company, which provisions may be waived or modified by the Plan Administrator at
any time. If not so established in the instrument evidencing the Option, the
Option shall be 

5

exercisable according to the following terms and conditions,
which may be waived or modified by the Plan Administrator at any time:

	(a) 	
      Except as otherwise set forth in this Article 7.6, any
      portion of an Option that is not vested and exercisable on the Employment
      Termination Date shall expire on such date.

	 	 	 
	(b) 	
      Any portion of an Option that is vested and exercisable
      on the Employment Termination Date shall expire on the earliest to occur
      of

	 	 	 
		(i) 	
      if the Participant's Employment Termination Date occurs
      for reasons other than Cause, Retirement, Disability or death, the day
      which is three months after such Employment Termination Date;

	 	 	 
		(ii) 	
      if the Participant's Employment Termination Date occurs
      by reason of Retirement, Disability or death, the one-year anniversary of
      such Employment Termination Date; and

	 	 	 
		(iii) 	
      the last day of the Option Term (the "Option Expiration
      Date").

	 	 	 
		
      Notwithstanding the foregoing, if the Participant dies
      after his or her Employment Termination Date but while an Option is
      otherwise exercisable, the portion of the Option that is vested and
      exercisable on such Employment Termination Date shall expire upon the
      earlier to occur of (y) the Option Expiration Date and (z) the one-year
      anniversary of the date of death, unless the Plan Administrator determines
      otherwise.

	 	 	 
		
      Also notwithstanding the foregoing, in case of
      termination of the Participant's employment or service relationship for
      Cause, all Options granted to that Participant shall automatically expire
      upon first notification to the Participant of such termination, unless the
      Plan Administrator determines otherwise. If a Participant's employment or
      service relationship with the Company is suspended pending an
      investigation of whether the Participant shall be terminated for Cause,
      all the Participant's rights under any Option shall likewise be suspended
      during the period of investigation. If any facts that would constitute
      termination for Cause are discovered after the Participant's relationship
      with the Company or a Related Company has ended, any Option then held by
      the Participant may be immediately terminated by the Plan Administrator,
      in its sole discretion.

	 	 	 
	(c) 	
      A Participant's transfer of employment or service
      relationship between or among the Company and any Related Company, or a
      change in status from an employee to a consultant, agent, advisor or
      independent contractor or a change in status from a consultant, agent,
      advisor or independent contractor to an employee, shall not be considered
      a termination of employment or service relationship for purposes of this
      Article 7. Unless the Plan Administrator determines otherwise, a
      termination of employment or service relationship shall be deemed to occur
      if a Participant's employment or service relationship is with an entity
      that has ceased to be a Related Company.

	 	 	 
	(d) 	
      The effect of a Company-approved leave of absence on the
      application of this Article 7 shall be determined by the Plan
      Administrator, in its sole discretion.

	 	 	 
	(e) 	
      If a Participant's employment or service relationship
      with the Company or a Related Company terminates by reason of Disability
      or death, the Option shall become fully vested and exercisable for all the
      shares subject to the Option. Such Option shall remain exercisable for the
      time period set forth in this Article 7.6.

6

ARTICLE 8. INCENTIVE STOCK OPTION LIMITATIONS 

Notwithstanding any other provisions of the Plan, and to the
extent required by Section 422 of the Code, Incentive Stock Options shall be
subject to the following additional terms and conditions:

	8.1 	Dollar Limitation 

To the extent the aggregate Fair Market Value (determined as of
the Grant Date) of Common Shares with respect to which Incentive Stock Options
are exercisable for the first time during any calendar year (under the Plan and
all other stock option plans of the Company) exceeds $100,000, such portion in
excess of $100,000 shall be treated as a Nonqualified Stock Option. In the event
the Participant holds two or more such Options that become exercisable for the
first time in the same calendar year, such limitation shall be applied on the
basis of the order in which such Options are granted.

	8.2 	Eligible Employees 

Individuals who are not employees of the Company or one of its
parent corporations or subsidiary corporations may not be granted Incentive
Stock Options.

	8.3 	Exercise Price 

The exercise price of an Incentive Stock Option shall be at
least 100% of the Fair Market Value of the Common Shares on the Grant Date, and
in the case of an Incentive Stock Option granted to a Participant who owns more
than 10% of the total combined voting power of all classes of the stock of the
Company or of its parent or subsidiary corporations (a "Ten Percent
Stockholder"), shall not be less than 110% of the Fair Market Value of the
Common Shares on the Grant Date. The determination of more than 10% ownership
shall be made in accordance with Section 422 of the Code.

	8.4 	Exercisability 

An Option designated as an Incentive Stock Option shall cease
to qualify for favorable tax treatment as an Incentive Stock Option to the
extent it is exercised (if permitted by the terms of the Option) (a) more than
three months after the Employment Termination Date if termination was for
reasons other than death or disability, (b) more than one year after the
Employment Termination Date if termination was by reason of disability, or (c)
after the Participant has been on leave of absence for more than 90 days, unless
the Participant's reemployment rights are guaranteed by statute or contract.

	8.5 	Taxation of Incentive Stock Options
  

In order to obtain certain tax benefits afforded to Incentive
Stock Options under Section 422 of the Code, the Participant must hold the
shares acquired upon the exercise of an Incentive Stock Option for two years
after the Grant Date and one year after the date of exercise.

A Participant may be subject to the alternative minimum tax at
the time of exercise of an Incentive Stock Option. The Participant shall give
the Company prompt notice of any disposition of shares acquired on the exercise
of an Incentive Stock Option prior to the expiration of such holding
periods.

	8.6 	Code Definitions 

For the purposes of this Article 8, "parent corporation,"
"subsidiary corporation" and "disability" shall have the meanings attributed to
those terms for purposes of Section 422 of the Code.

7

ARTICLE 9. WITHHOLDING 

	9.1 	General 

The Company may require the Participant to pay to the Company
the amount of any taxes that the Company is required by applicable federal,
state, local or foreign law to withhold with respect to the grant, vesting or
exercise of an Option. The Company shall not be required to issue any shares
Common Shares under the Plan until such obligations are satisfied.

	9.2 	Payment of Withholding Obligations in Cash
      or Shares 

The Plan Administrator may permit or require a Participant to
satisfy all or part of his or her tax withholding obligations by (a) paying cash
to the Company, (b) having the Company withhold from any cash amounts otherwise
due or to become due from the Company to the Participant, (c) having the Company
withhold a portion of any Common Shares that would otherwise be issued to the
Participant having a value equal to the tax withholding obligations (up to the
employer's minimum required tax withholding rate), or (d) surrendering any
Common Shares that the Participant previously acquired having a value equal to
the tax withholding obligations (up to the employer's minimum required tax
withholding rate to the extent the Participant has held the surrendered shares
for less than six months).

ARTICLE 10. ASSIGNABILITY

Neither an Option nor any interest therein may be assigned,
pledged or transferred by the Participant or made subject to attachment or
similar proceedings other than by will or by the applicable laws of descent and
distribution, and, during the Participant's lifetime, such Options may be
exercised only by the Participant. Notwithstanding the foregoing, and to the
extent permitted by Section 422 of the Code, the Plan Administrator, in its sole
discretion, may permit a Participant to assign or transfer an Option or may
permit a Participant to designate a beneficiary who may exercise the Option or
receive payment under the Option after the Participant's death; provided,
however, that any Option so assigned or transferred shall be subject to all the
terms and conditions of the Plan and those contained in the instrument
evidencing the Option.

ARTICLE 11. ADJUSTMENTS

	11.1 	Adjustment of Shares

In the event, at any time or from time to time, a stock
dividend, stock split, spin-off, combination or exchange of shares,
recapitalization, merger, consolidation, distribution to stockholders other than
a normal cash dividend, or other change in the Company's corporate or capital
structure, including, without limitation, a Related Party Transaction, results
in (a) the outstanding Common Shares, or any securities exchanged therefor or
received in their place, being exchanged for a different number or kind of
securities of the Company or of any other corporation or (b) new, different or
additional securities of the Company or of any other corporation being received
by the holders of Common Shares of the Company, then the Plan Administrator
shall make proportional adjustments in (i) the maximum number and kind of
securities subject to the Plan and issuable as Incentive Stock Options as set
forth in Article 4 and the maximum number and kind of securities that may be
made subject to Options and to Options to any individual as set forth in Article
4.3, and (ii) the number and kind of securities that are subject to any
outstanding Award and the per share price of such securities, without any change
in the aggregate price to be paid therefor. The determination by the Plan
Administrator as to the terms of any of the foregoing 

8

adjustments shall be conclusive and binding. Notwithstanding
the foregoing, a dissolution or liquidation of the Company or a Corporate
Transaction shall not be governed by this Article 11.1 but shall be governed by
Articles 11.2 and 11.3, respectively.

	11.2 	Dissolution or Liquidation

To the extent not previously exercised or settled, and unless
otherwise determined by the Plan Administrator in its sole discretion, Options
shall terminate immediately prior to the dissolution or liquidation of the
Company. To the extent a forfeiture provision or repurchase right applicable to
an Option has not been waived by the Plan Administrator, the Option shall be
forfeited immediately prior to the consummation of the dissolution or
liquidation.

	11.3 	Corporate Transaction

Options 

	(a) 	
      In the event of a Corporate Transaction, except as
      otherwise provided in the instrument evidencing an Option (or in a written
      employment or services agreement between a Participant and the Company or
      Related Company) and except as provided in subsection (b) below, each
      outstanding Option shall be assumed or an equivalent option or right
      substituted by the surviving corporation, the successor corporation or its
      parent corporation, as applicable (the "Successor Corporation").

	 	 
	(b) 	
      If, in connection with a Corporate Transaction, the
      Successor Corporation refuses to assume or substitute for an Option, then
      each such outstanding Option shall become fully vested and exercisable
      with respect to 100% of the unvested portion of the Option. In such case,
      the Plan Administrator shall notify the Participant in writing or
      electronically that the unvested portion of the Option specified above
      shall be fully vested and exercisable for a specified time period. At the
      expiration of the time period, the Option shall terminate, provided that
      the Corporate Transaction has occurred.

	 	 
	(c) 	
      For the purposes of this Article 11.3, the Option shall
      be considered assumed or substituted for if following the Corporate
      Transaction the option or right confers the right to purchase or receive,
      for each share of Common Shares subject to the Option immediately prior to
      the Corporate Transaction, the consideration (whether stock, cash, or
      other securities or property) received in the Corporate Transaction by
      holders of Common Shares for each share held on the effective date of the
      transaction (and if holders were offered a choice of consideration, the
      type of consideration chosen by the holders of a majority of the
      outstanding shares); provided, however, that if such consideration
      received in the Corporate Transaction is not solely Common Shares of the
      Successor Corporation, the Plan Administrator may, with the consent of the
      Successor Corporation, provide for the consideration to be received upon
      the exercise of the Option, for each share of Common Shares subject
      thereto, to be solely Common Shares of the Successor Corporation
      substantially equal in fair market value to the per share consideration
      received by holders of Common Shares in the Corporate Transaction. The
      determination of such substantial equality of value of consideration shall
      be made by the Plan Administrator and its determination shall be
      conclusive and binding.

	 	 
	(d) 	
      All Options shall terminate and cease to remain
      outstanding immediately following the Corporate Transaction, except to the
      extent assumed by the Successor Corporation.

	11.4 	Further Adjustment of Options
  

Subject to Articles 11.2 and 11.3, the Plan Administrator shall
have the discretion, exercisable at any time before a sale, merger,
consolidation, reorganization, liquidation or change of control of 

9

the Company, as defined by the Plan Administrator, to take such
further action as it determines to be necessary or advisable, and fair and
equitable to the Participants, with respect to Options. Such authorized action
may include (but shall not be limited to) establishing, amending or waiving the
type, terms, conditions or duration of, or restrictions on, Options so as to
provide for earlier, later, extended or additional time for exercise, lifting
restrictions and other modifications, and the Plan Administrator may take such
actions with respect to all Participants, to certain categories of Participants
or only to individual Participants. The Plan Administrator may take such action
before or after granting Options to which the action relates and before or after
any public announcement with respect to such sale, merger, consolidation,
reorganization, liquidation or change of control that is the reason for such
action.

	11.5 	Limitations 

The grant of Options shall in no way affect the Company's right
to adjust, reclassify, reorganize or otherwise change its capital or business
structure or to merge, consolidate, dissolve, liquidate or sell or transfer all
or any part of its business or assets.

	11.6 	Fractional Shares 

In the event of any adjustment in the number of shares covered
by any Option, each such Option shall cover only the number of full shares
resulting from such adjustment.

ARTICLE 12. AMENDMENT AND TERMINATION 

	12.1 	Amendment or Termination of Plan
  

The Board may suspend, amend or terminate the Plan or any
portion of the Plan at any time and in such respects as it shall deem advisable;
provided, however, that to the extent required for compliance with Section 422
of the Code or any applicable law or regulation, stockholder approval shall be
required for any amendment that would (a) increase the total number of shares
available for issuance under the Plan, (b) modify the class of employees
eligible to receive Options, or (c) otherwise require stockholder approval under
any applicable law or regulation. Any amendment made to the Plan that would
constitute a "modification" to Incentive Stock Options outstanding on the date
of such amendment shall not, without the consent of the Participant, be
applicable to such outstanding Incentive Stock Options but shall have
prospective effect only.

	12.2 	Term of Plan 

Unless sooner terminated as provided herein, the Plan shall
terminate ten years after the earlier of the Plan's adoption by the Board and
approval by the stockholders.

	12.3 	Consent of Participant

The suspension, amendment or termination of the Plan or a
portion thereof or the amendment of an outstanding Option shall not, without the
Participant's consent, materially adversely affect any rights under any Option
theretofore granted to the Participant under the Plan. Any change or adjustment
to an outstanding Incentive Stock Option shall not, without the consent of the
Participant, be made in a manner so as to constitute a "modification" that would
cause such Incentive Stock Option to fail to continue to qualify as an Incentive
Stock Option. Notwithstanding the foregoing, any adjustments made pursuant to
Article 12 shall not be subject to these restrictions.

10

ARTICLE 13. GENERAL 

	13.1 	Evidence of Options 

Options granted under the Plan shall be evidenced by a written
instrument that shall contain such terms, conditions, limitations and
restrictions as the Plan Administrator shall deem advisable and that are not
inconsistent with the Plan.

	13.2 	No Individual Rights

Nothing in the Plan or any Option granted under the Plan shall
be deemed to constitute an employment contract or confer or be deemed to confer
on any Participant any right to continue in the employ of, or to continue any
other relationship with, the Company or any Related Company or limit in any way
the right of the Company or any Related Company to terminate a Participant's
employment or other relationship at any time, with or without Cause.

	13.3 	Issuance of Shares 

Notwithstanding any other provision of the Plan, the Company
shall have no obligation to issue or deliver any Common Shares under the Plan or
make any other distribution of benefits under the Plan unless, in the opinion of
the Company's counsel, such issuance, delivery or distribution would comply with
all applicable laws (including, without limitation, the requirements of the
Securities Act), and the applicable requirements of any securities exchange or
similar entity.

The Company shall be under no obligation to any Participant to
register for offering or resale or to qualify for exemption under the Securities
Act, or to register or qualify under state securities laws, any Common Shares,
security or interest in a security paid or issued under, or created by, the
Plan, or to continue in effect any such registrations or qualifications if made.
The Company may issue certificates for shares with such legends and subject to
such restrictions on transfer and stop-transfer instructions as counsel for the
Company deems necessary or desirable for compliance by the Company with federal
and state securities laws.

To the extent the Plan or any instrument evidencing an Option
provides for issuance of stock certificates to reflect the issuance of Common
Shares, the issuance may be effected on a noncertificated basis, to the extent
not prohibited by applicable law or the applicable rules of any stock
exchange.

	13.4 	No Rights as a Stockholder

No Option or Stock Option denominated in units shall entitle
the Participant to any cash dividend, voting or other right of a stockholder
unless and until the date of issuance under the Plan of the shares that are the
subject of such Option.

	13.5 	Compliance With Laws and Regulations
  

Notwithstanding anything in the Plan to the contrary, the Plan
Administrator, in its sole discretion, may bifurcate the Plan so as to restrict,
limit or condition the use of any provision of the Plan to Participants who are
officers or directors subject to Section 16 of the Exchange Act without so
restricting, limiting or conditioning the Plan with respect to other
Participants. Additionally, in interpreting and applying the provisions of the
Plan, any Option granted as an Incentive Stock Option pursuant to the Plan
shall, to the extent permitted by law, be construed as an "incentive stock
option" within the meaning of Section 422 of the Code.

11

	13.6 	Participants in Other Countries
  

The Plan Administrator shall have the authority to adopt such
modifications, procedures and subplans as may be necessary or desirable to
comply with provisions of the laws of other countries in which the Company or
any Related Company may operate to assure the viability of the benefits from
Options granted to Participants employed in such countries and to meet the
objectives of the Plan.

	13.7 	No Trust or Fund 

The Plan is intended to constitute an "unfunded" plan. Nothing
contained herein shall require the Company to segregate any monies or other
property, or Common Shares, or to create any trusts, or to make any special
deposits for any immediate or deferred amounts payable to any Participant, and
no Participant shall have any rights that are greater than those of a general
unsecured creditor of the Company.

	13.8 	Severability 

If any provision of the Plan or any Option is determined to be
invalid, illegal or unenforceable in any jurisdiction, or as to any person, or
would disqualify the Plan or any Option under any law deemed applicable by the
Plan Administrator, such provision shall be construed or deemed amended to
conform to applicable laws, or, if it cannot be so construed or deemed amended
without, in the Plan Administrator's determination, materially altering the
intent of the Plan or the Option, such provision shall be stricken as to such
jurisdiction, person or Option, and the remainder of the Plan and any such
Option shall remain in full force and effect.

	13.9 	Choice of Law 

The Plan and all determinations made and actions taken pursuant
heretoshall be governed by the laws of the Province of British Columbia without
giving effect to principles of conflicts of law.

ARTICLE 14. EFFECTIVE DATE 

The effective date is June 6, 2007, being the date on which the
Plan was adopted by the Board. If the stockholders of the Company do not approve
the Plan within 12 months after the Board's adoption of the Plan, any Incentive
Stock Options granted under the Plan will be treated as Nonqualified Stock
Options.

12

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