EXHIBIT (g.1)
CUSTODY AGREEMENT
THIS CUSTODY AGREEMENT is dated January 30, 0000
XXXXXXX
XXX XXXXX XXXXXXXXX XXXX, x Xxx Xxxx Xxxxx chartered bank, having an office at
000 Xxxx Xxx., Xxx Xxxx, XX 00000-0000 (the "Custodian"), and iSHARES INC., an
investment company with multiple iShares MSCI Index Funds, whose principal
office is at 000 Xxxxxxxx Xxxxxxx, Xxxxxxxxxx Xxxxxxxx 00000 (the Client)
APPOINTMENT AND ACCEPTANCE; ACCOUNTS
1.(a) The Client hereby appoints the Custodian as a custodian of Property
(as defined below) owned or under the control of the Client that is
delivered to the Custodian, or any Subcustodian as appointed below,
from time to time to be held in custody for the Client. The Custodian
agrees to act as such custodian upon the terms and conditions
hereinafter provided. The Custodian acknowledges that the Client acts
on behalf of its various iShares MSCI Index Funds, each of which
maintains a separate account with the Custodian.
(b) Prior to the delivery of any Property by the Client to the Custodian
in respect of any Account, the Client shall deliver to the Custodian
each document and other item listed in Appendix 1 as reasonably
necessary or appropriate for such Property. In addition, the Client
shall deliver to the Custodian any additional documents the Custodian
may reasonably deem necessary for the performance of its duties under
this Agreement.
(c) The Client instructs the Custodian to establish on the books and
records of the Custodian the cash and securities accounts listed in
Appendix 2, as such Appendix may be amended or supplemented from time
to time (the "Accounts"). Upon receipt of Authorized Instructions (as
defined below) and appropriate account opening forms, the Custodian
shall open additional Accounts for the Client. Upon the Custodian's
confirmation to the Client of the opening of such additional Accounts,
or of the closing of Accounts, Appendix 2 shall be deemed
automatically amended or supplemented accordingly. The Custodian shall
record in the Accounts and shall have general responsibility for the
safekeeping of all securities ("Securities"), cash, cash equivalents
and other property (all such Securities, cash, cash equivalents and
other property being collectively the "Property") of the Client that
are delivered to the Custodian for custody or that were previously
delivered to Custodian for custody at any time on or after the date
that Custodian succeeded by operation of law to the rights and
obligations of Xxxxxx Xxxxxxx Trust Company and that remain in the
custody of the Custodian as of the date hereof (it being expressly
agreed that cash is not a "financial asset" for purposes of Article 8
of the New York Uniform Commercial Code and it being further expressly
agreed that Custodian shall be responsible, where applicable, for
certain services specified herein with respect to Property no longer
in its custody (including, by way of illustration, tax reclaim
services).
(d) For the avoidance of doubt, there shall be no right of set-off between
Accounts and no Property relating to any Account shall be used to meet
the obligations of any other Account or of the Client in relation
thereto or of any other customers of the Custodian.
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SUBCUSTODIANS
2. The Securities may be held in custody accounts that have been established by
the Custodian with one or more domestic or foreign banks or other institutions
as listed on Exhibit A (the Subcustodians), as such Exhibit may be amended from
time to time by the Custodian by not less than sixty (60) days' written notice
to the Client, or through the facilities of one or more securities depositories
or clearing agencies, but the Custodian may not use the services of any
Subcustodian or depository not named in Exhibit A (as amended from time to time)
save where obliged to do so in order to deliver or take delivery of a Security
in settlement of a transaction carried out by the Client and instructed to be
settled by the Client. Subject as provided in Section 12, the Custodian shall
hold Property through a Subcustodian, securities depository or clearing agency,
and any Subcustodian may hold Property in a securities depository or a clearing
agency, and in the case of each Subcustodian as selected by it using reasonable
care and skill, only if:
(a) the agreement between Customer and such Subcustodian provides that the
Property shall not be subject to any right, charge, security interest, lien
or claim of any kind in favor of such Subcustodian or any of its creditors,
except a claim of payment for their safe custody or administration or, in
the case of cash deposits, except for liens or rights in favor of creditors
of the Subcustodian, arising under bankruptcy, insolvency or similar laws;
and
(b) beneficial ownership of such Property may be freely transferred without the
payment of money or value other than for safe custody or administration.
RECORDS
3. With respect to Property held by a Subcustodian:
(i) The Custodian may hold Securities with securities or other
investments of other customers with a Subcustodian in a single
account identified as held by the Custodian for the benefit of
its customers;
(ii) The Custodian shall identify on its books as belonging to
Client's Accounts any Property held by a Subcustodian for the
Custodian's account;
(iii) The Custodian shall require that Property held by the
Subcustodian for the Custodian's account be identified on the
Subcustodian's books as separate from any other property held by
the Subcustodian other than property of the Custodian's
customers held solely for the benefit of customers of the
Custodian; and
(iv) In the event the Subcustodian holds Property in a securities
depository or clearing agency, such Subcustodian shall be
required by its agreement with the Custodian to identify on its
books such Property as being held for the account of the
Custodian as custodian for its customers or in such other manner
as is required by local law or market practice.
ACCESS TO RECORDS
4. The Custodian shall allow the Client or its duly authorized agent reasonable
access to the records held by the Custodian relating to Property as the Client
may reasonably require in connection with their examination of the Client's
affairs. The Custodian shall also obtain from any Subcustodian (and shall
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require each Subcustodian to use reasonable efforts to obtain from any
securities depository or clearing agency in which it deposits Property) an
undertaking, to the extent consistent with local market practice and the laws of
the jurisdiction or jurisdictions to which such Subcustodian, securities
depository or clearing agency is subject, to permit the Client or its duly
authorized agent such reasonable access to the records of such Subcustodian,
securities depository or clearing agency as may be reasonably required or to
take such other action as the Custodian in its judgement may deem sufficient to
ensure such reasonable access.
REPORTS
5. The Custodian shall provide such reports and other information to the Client
and to such persons as the Client directs and as the Custodian and the Client
may agree from time to time. Custodian shall issue statements to Client at
times mutually agreed identifying the Property in the Accounts, and otherwise on
request. Additionally, the Custodian shall send Client an advice or
notification of any transfers of Property to or from the Accounts. Such
statements, advice, or notifications shall indicate the identity of the entity
having custody of the Property. Unless the Client sends the Custodian a written
exception or other objection to any such statement, advice or related
notification within thirty (30) days after the Client's next audit covering any
period included in the statement, advice or related notification (but in no
event shall such written exception or other objection be made more than thirty
(30) days and one (1) year from the date of such statement, advice or related
notification), the Client shall be deemed to have approved the same. The
Custodian shall advise the Client in writing of any material changes in the
foreign custody arrangements applicable to Client's Property.
PAYMENT OF MONIES
6(a) The Custodian shall make payments from monies being held in the Accounts
only in accordance with Authorized Instructions or as provided in Sections
9(e) and (i), 13 and 17. To facilitate the administration of the Client's
trading and investment activity, when instructed by specific or standing
Instruction, the Custodian is authorized as the Client's agent to cause
the Client to enter into spot or forward foreign exchange contracts with
the Custodian, its Affiliates or Subcustodians. Authorized Instructions,
including standing instructions, may be issued with respect to such
contracts but the Custodian may establish rules or limitations concerning
any foreign exchange facility made available. In all cases where the
Custodian, its Affiliates or Subcustodians enter into a separate master
foreign exchange contract with the Client that covers foreign exchange
transactions for the Accounts, the terms and conditions of that foreign
exchange contract and, to the extent not inconsistent, this Agreement
shall apply to such transactions. (For purposes hereof, the term
"Affiliate" shall mean an entity controlling, controlled by, or under
common control with, the Custodian.)
TRANSFER OF SECURITIES
7. The Custodian shall make, or cause any Subcustodian to make, transfers,
exchanges or deliveries of Securities only in accordance with Authorized
Instructions or as provided in Sections 9 and 17. For purposes of Sections 7 and
7(A), all notices shall be sent both as set forth in Section 20 and any service
level documentation that may be agreed upon by the parties (the "Service
Documentation").
7A (1) Except as specified in Section 7(A)(3) below, if the Custodian credits
the Account on a payable date, or at any time prior to actual collection and
reconciliation to the Account, with interest, dividends,
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redemptions or any other amount due, the Client shall promptly return any such
amount upon the prior written notice periods specified in the Service
Documentation: (i) that such amount has not been received in the ordinary course
of business or (ii) that such amount was incorrectly credited. If the Client
does not return any such amount by the expiration of the applicable notice
period, the Custodian shall be entitled, upon 72 hours additional prior written
notice to the Client, to reverse such credit by debiting the Account for the
amount previously credited. The Custodian or its Subcustodian shall have no duty
or obligation to institute legal proceedings, file a claim or a proof of claim
in any insolvency proceeding or take any other action with respect to the
collection of such amount, but may act for the Client upon Authorized
Instructions after consultation with the Client.
(2) Property shall be transferred, exchanged or delivered by the
Custodian or its Subcustodian only upon receipt by the Custodian of Authorized
Instructions which include all information required by the Custodian.
Settlement and payment for Property received for, and delivery of Property out
of, the Account may be made in accordance with the customary or established
securities trading or securities processing practices and procedures in the
jurisdiction or market in which the transaction occurs, including, without
limitation, delivery of Property to a purchaser, dealer or their agents against
a receipt with the expectation of receiving later payment and free delivery.
Delivery of Property out of the Account may also be made in any manner
specifically required by Authorized Instructions acceptable to the Custodian.
Notwithstanding the foregoing, the parties agree that, except where inconsistent
with local law or customary practice, Property will not be delivered out of an
Account except against receipt on behalf of the Client of the consideration
against which such Property is being delivered.
(3) With respect to any sale, exchange or purchase of Property, the
Custodian will debit or credit the Account with cash or Property on the
contractual settlement date for the countries listed on Schedule One, attached
hereto and fully incorporated herein. With respect to dividends and interest,
the Custodian will credit or debit the Account with cash or Property on the
"AutoCredit Date" as defined and specified in the Service Documentation.
Otherwise, transactions shall be credited or debited to the Account on the date
cash or Property are actually received by the Custodian and reconciled to the
Account. Schedule One is subject to change from time to time (i) by written
agreement between the Custodian and the Client, (ii) by at least thirty (30)
days prior written notice from the Custodian to the Client, where the amendment
is necessary to reflect changes in law, regulation or market practice and
affects all of the Custodian's relevant clients or (iii) notwithstanding Section
7A(3)(ii) above and, only in the event of sudden major changes in law,
regulation or market practice without an amendment for which the Custodian or
any Subcustodian could reasonably suffer significant financial liabilities, by
such notice and by such means as is reasonably practicable and consistent with a
reasonable standard of care.
(i) The Custodian may reverse credits or debits made to the Account
pursuant to this Section 7(A) if the related transaction fails to
settle within ninety (90) days after the contractual settlement date
for the related transaction, but only upon at least 72 hours prior
written notice to the Client of any such reversals.
(ii) If any Property delivered pursuant to this Section 7A is returned by
the recipient thereof, the Custodian may reverse the credits and
debits of the particular transaction at any time, provided however,
the Custodian gives Client at least 72 hours prior written notice of
any such reversals.
CORPORATE ACTIONS; PROXY VOTING; TAX RECLAIMS
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For purposes of Sections 8 and 8(A), all notices shall be sent both as set forth
in Section 20 and the Service Document.
8. (a) Whenever any of the Custodian's or any Subcustodian's departments or
units involved in custodial operations receives information on a timely
basis or has any reason to believe that it should have received information
(whether from an issuer, Subcustodian, depository or by means of electronic
information typically used by custodian banks for such purpose) concerning
the Property which requires discretionary or mandatory action by the
beneficial owner of the Property (other than a proxy), such as subscription
rights, bonus issues, stock repurchase plans and rights offerings, or legal
notices or other material intended to be transmitted to securities holders
("Corporate Actions"), the Custodian shall give the Client timely notice of
such Corporate Actions.
When a rights entitlement or a fractional interest resulting from a rights
issue, stock dividend, stock split or similar Corporate Action is received
which bears an expiration date, the Custodian shall endeavor to obtain
Authorized Instructions from the Client or its Authorized Person (as
defined in Section 10(b) hereof), but if Authorized Instructions are not
received in time for the Custodian to take timely action, or notice of
information regarding such Corporate Action (as set forth in Section 8(a)
above) was received too late to seek Authorized Instructions, the Custodian
is authorized to sell such rights entitlement or fractional interest and to
credit the Deposit Account with the proceeds or take any other action it
deems, in good faith, to be appropriate in which case it shall be held
harmless for any such action. Custodian shall inform the Client of
execution prices in writing within three (3) business days.
(b) The Custodian shall provide proxy voting services, if elected by the
Client, in accordance with the terms of the proxy voting services rider
hereto. Proxy voting services may be provided by the Custodian or, in
whole or in part, by one or more third parties appointed by the Custodian
(which may be "Affiliates" of the Custodian).
8A (1) Subject to the provisions hereof, the Custodian shall apply for a
reduction of withholding tax and any refund of any tax paid or tax credits
which apply in each applicable market in respect of income payments on
Property for the Client's benefit which the Custodian believes or, in the
exercise of reasonable care, should have known, may be available to the
Client.
(2) The provision of tax reclaim services by the Custodian is conditional
upon the Custodian's receiving from the Client or, to the extent the
Property are beneficially owned by others, from each beneficial owner, A) a
declaration of the beneficial owner's identity and place of residence and
(B) certain other documentation (pro forma copies of which are available
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from the Custodian). The Client acknowledges that, if the Custodian does
not receive such declarations, documentation and information the Custodian
shall be unable to provide tax reclaim services.
(3) Unless the Custodian has acted with gross negligence, fraudulently or
with willful misconduct or knows or has reason to know that any third party
(including any Subcustodian) has acted in such a way and Custodian fails to
inform the Client on a timely basis of such third party action, the
Custodian shall not be liable to the Client or any third party for any
taxes, fines or penalties payable by the Custodian or the Client, and shall
be indemnified accordingly, whether these result from the inaccurate
completion of documents by the Client or any third party, or as a result of
the provision to the Custodian or any third party of inaccurate or
misleading information or the withholding of material information by the
Client or any other
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third party, or as a result of any delay of any revenue authority or any
other matter beyond the Custodian's control.
(4) The Custodian shall perform tax reclaim services only with respect to
taxation levied by the revenue authorities of the countries notified to the
Client as of the date hereof, and the Custodian may, by two weeks prior
written notice supplement or amend the markets in which tax reclaim
services are offered. Other than as expressly provided in this sub-clause,
the Custodian shall have no responsibility with regard to the Client's tax
position or status in any jurisdiction.
(5) The Custodian is authorized to disclose to any revenue authority,
governmental body or any institution acting as agent for or on behalf of
such authority or body any information contained in a Chase "Investor Tax
Questionnaire" completed by Client regarding the securities and/or cash
custodied by the Custodian on behalf of the Client. In the event, however,
that any revenue authority or governmental body or any institution acting
as agent for or on behalf of such authority or body requests information on
the nature of the Client and/or information beyond that contained in an
Investor Tax Questionnaire, then the Custodian shall provide the Client
prompt, written notice of such request and obtain its prior, written
approval before disclosing any information. The Client may not
unreasonably withhold its consent to any such disclosures. To the extent
permitted to do so by applicable law, regulation or the like, the Custodian
shall provide the Client with copies of all such requests and notice of the
applicable disclosures within fifteen (15) days, if practicable, of the
disclosures.
(6) Tax reclaim services may be provided by the Custodian or, in whole or
in part, by one or more third parties appointed by the Custodian (which may
be any of the Affiliates); provided that the Custodian shall be liable for
the performance of any such third party to the same extent as the Custodian
would have been if the Custodian performed such services.
(7) The Client confirms that, upon prior written notice, the Custodian is
authorized to deduct from any cash received or credited to the Account any
taxes or levies required by any revenue or governmental authority for
whatever reason in respect of the Custody Account.
(8) If the Custodian does not receive appropriate declarations,
documentation and information, then any additional applicable United
Kingdom taxation shall be deducted from all income received in respect of
the Property issued outside the United Kingdom (which shall for this
purpose include UK Eurobonds) and any applicable United States tax shall be
deducted from income received from the Property. The Client shall provide
to the Custodian such documentation and information as the Custodian may
require in connection with taxation, and warrants that, when given, this
information shall be true and correct in every material respect, not
misleading in any material way, and contain all material information. The
Client undertakes to notify the Custodian immediately if any such
information requires updating or amendment.
(9) Unless otherwise specified or contemplated in Service Documentation,
the Client shall be responsible for the payment of all taxes relating to
the Property in the Custody Account, and the Client agrees to pay,
indemnify and hold the Custodian harmless from and against any and all
liabilities, penalties, interest or additions to tax with respect to or
resulting from, any delay in, or failure by, the Custodian (1) to pay,
withhold or report any U.S. federal, state or local taxes or foreign taxes
imposed on, or (2) to report interest, dividend or other income paid or
credited to the Cash Account, whether such failure or delay by the
Custodian to pay, withhold or report tax or income is the result of (x) the
Client's failure to comply with the terms of this paragraph, or
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(y) the Custodian's own acts or omissions; provided however, the Client
shall not be liable to the Custodian and Custodian shall indemnify Client
for any penalty, interest or additions to tax due as a result of the
Custodian's failure to pay or withhold tax or to report interest, dividend
or other income paid or credited to the Cash Account primarily as a result
of the Custodian's breach of this Agreement, negligent acts or omissions.
(10) Notwithstanding anything contained in Sections 8(A)(1) through (9), the
Custodian shall be liable for any tax reclaims not obtained on behalf of
the Client as a result of missed deadlines and/or statutes of limitations
where the applicable deadline or statute of limitation is missed on account
of the Custodian having failed to give Client at least two months prior
notice of (a) any missing required documentation or (b) any change in the
law, facts, procedures and/or any other circumstances beyond the control of
the Custodian; provided that, such notice may be less than two months in
respect of alternative (b) where giving two months notice is not reasonably
feasible as long as the notice given is as much as is reasonably feasible.
GENERAL AUTHORITY
9. In the absence of Authorized Instructions to the contrary, the Custodian
shall, and shall authorize any Subcustodian to:
(a) receive and collect all income and principal with respect to Securities and
to credit cash receipts to the Accounts;
(b) exchange Securities when the exchange is purely ministerial (including,
without limitation, the exchange of interim receipts or temporary
securities for securities in definitive form and the exchange of warrants,
or other documents of entitlement to securities, for the securities
themselves);
(c) surrender Securities at maturity or when called for redemption upon
receiving payment therefor;
(d) execute in the Client's name such ownership and other certificates as may
be required to obtain the payment of income from Securities;
(e) pay or cause to be paid, from the Accounts, any and all taxes and levies in
the nature of taxes imposed on Securities by any governmental authority in
connection with custody of and transactions in such Securities;
(f) endorse for collection, in the name of the Client , cheques, drafts and
other negotiable instruments;
(g) take non-discretionary action on mandatory corporate actions;
(h) in general, attend to all non-discretionary details in connection with the
custody, sale, purchase, transfer and other dealings with the Property;
(i) pay calls due on partly paid Securities where the liability to pay such
calls is apparent on the face of the relevant document of title held by the
Custodian but not otherwise; and
(j) make payments to itself or others for expenses of handling Property or
other similar items relating to its duties under this Agreement, provided
that all such payments shall be accounted
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for to the Client and Custodian shall provide at least 72 hours prior
written notice of local market-imposed fees, such as stamp and registration
fees.
AUTHORIZED INSTRUCTIONS; AUTHORIZED PERSONS
10.(a) Except as otherwise provided in Sections 6 through 9, and 17, all
payments of monies, all transfers, exchanges or deliveries of Property
and all responses to corporate actions shall be made or taken only
upon receipt by the Custodian of Authorized Instructions; provided
that such Authorized Instructions are timely received by the
Custodian. Authorized Instructions of the Client means instructions
from an Authorized Person received by facsimile, tested telex,
electronic link or other electronic means or by telephone (given or
purporting to be given by an Authorized Person) or by such other means
as may be agreed in writing between the Client and the Custodian.
(b) Where the Custodian receives Authorized Instructions, pursuant to
Section 10(a) or otherwise, by telephone the Custodian shall be
entitled to rely on such Authorized Instructions provided that the
person giving such Authorized Instructions is or purports to be an
Authorized Person. Such telephone instructions shall be confirmed in
writing as soon as possible. The Custodian shall, however, be entitled
in its sole discretion to act on the Authorized Instructions first
given (unless prior to so acting such telephone instructions have been
countermanded) and whether or not such confirmation is received. The
Custodian shall not be liable to the Client for any loss caused to the
Client or third parties by its taking or refraining from taking any
action pursuant hereto pending receipt of written confirmation of such
telephone instructions as set out above or by any irregularity, delay,
mistake, telegraphic error, omission or misrepresentation that may
arise provided that nothing in this sentence shall absolve the
Custodian from liability for any loss, liability or expense for which
it would be liable under Section 15.
(c) Authorized Person means each of the persons or entities identified on
Appendix 3 as amended from time to time by written notice from the
Client to the Custodian. The Client represents and warrants to the
Custodian that each Authorized Person listed in Appendix 3, as amended
from time to time, is authorized to issue Authorized Instructions on
behalf of the Client. Prior to the delivery of the Property to the
Custodian, the Custodian shall provide a list of designated system
user ID numbers and passwords that the Client shall be responsible for
assigning to Authorized Persons. The Custodian shall assume that an
electronic transmission received and identified by a system user ID
number and password was sent by an Authorized Person. The Custodian
agrees to provide additional designated system user ID numbers and
passwords as needed by the Client. The Client authorizes the Custodian
to issue new system user ID numbers upon the request of a previously
existing Authorized Person. Upon the issuance of additional system
user ID numbers by the Custodian to the Client, Appendix 3 shall be
deemed automatically amended accordingly. The Client authorizes the
Custodian to act and rely, and directs it to accept and act, upon any
Authorized Instructions received by the Custodian which have been
issued, or purport to have been issued, by an Authorized Person, but
this authority and direction does not apply if, prior to receipt of
such Authorized Instructions, the Custodian has received Authorized
Instructions from the Client that such Authorized Person is no longer
authorized to issue Authorized Instructions on behalf of the Client
and the Custodian has received and has had a reasonable opportunity to
act upon such notice.
(d) Any Authorized Person may cancel/correct or otherwise amend any
Authorized Instruction received by the Custodian, but the Client
agrees to indemnify the Custodian for any loss or expense incurred by
the Custodian as a result of it having relied upon or acted on any
prior
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Authorized Instruction save to the extent the Custodian is liable
therefor under Section 15. An amendment or cancellation of an
Authorized Instruction to deliver or receive any security or funds in
connection with a trade shall not be processed once the trade has
settled.
REGISTRATION OF SECURITIES
11.(a) In the absence of Authorized Instructions to the contrary, Securities
which must be held in registered form shall be registered in the name
of the Custodian or the Custodian's nominee or, in the case of
Securities in the custody of an entity other than the Custodian, in
the name of the Custodian, its Subcustodian or their respective
nominees, provided that the Custodian shall not register securities in
its own name if it is prohibited from doing so by relevant regulatory
rules applicable to the Custodian or any Subcustodian. The Custodian
may, upon prior written notice to the Client, cause any Securities to
be registered or re-registered in the name of the Client.
(b) Where the Custodian has been instructed by the Client (other than as
required to comply with local law or practice) to hold any Securities
in the name of any person or entity other than the Custodian, its
Subcustodian or their respective nominees, the Custodian shall not be
responsible for any failure to collect such dividends or other income
or participate in any such corporate action with respect to such
Securities.
DEPOSIT ACCOUNTS
12. The Custodian confirms that, except to the extent otherwise agreed in
writing, all cash held in the custody or related cash Accounts shall be
deposited at all times in one or more commercial deposit accounts at the
Custodian's New York or London branches.
SHORT-TERM CREDIT EXTENSIONS
13.(a) In the absence of Authorized Instructions, from time to time, the
Custodian may extend credit for the Client which:
(i) is necessary in connection with payment and clearance of
Securities and foreign exchange transactions; or
(ii) is pursuant to the schedule, as and if set forth in the Service
Documentation, of credits for dividends and interest payments on
Securities; or
(iii) arises in connection with the provision by the Custodian of
contractual settlement date accounting.
Except for extensions of credit made in connection with Custodian's
provision of contractual settlement date accounting or pursuant to the
AutoCredits Schedule in the Service Documentation, both as specified
in Section 7(a), all such extensions of credit shall be repayable by
the Client on demand or within such notice period (if any) as is set
out in the Service Documentation.
(b) Except for extensions of credit made in connection with Custodian's
provision of contractual settlement date accounting or pursuant to the
AutoCredits Schedule in the Service Documentation, both as specified
in Section 7(a), the Custodian shall be entitled to charge the Client
interest for any such credit extension at rates to be agreed upon from
time to time.
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REPRESENTATIONS AND WARRANTIES
14.(a) The Client represents and warrants that:
(i) the execution, delivery and performance of this Agreement
(including, without limitation, the ability to obtain the
extensions of credit in accordance with Section 13) are within
the Client's power and authority and have been duly authorized
by all requisite action (corporate or otherwise) of the Client;
and
(ii) this Agreement and each extension of short-term credit extended
to or arranged for the benefit of the Client in accordance with
Section 13 shall at all times constitute a legal, valid and
binding obligation of the Client enforceable against the Client,
except as may be limited by bankruptcy, insolvency or other
similar laws affecting the enforcement of creditors' rights in
general and subject to the effect of general principles of
equity (regardless of whether considered in a proceeding in
equity or at law).
(b) The Custodian represents and warrants that:
(i) the execution, delivery and performance of this Agreement are
within the Custodian's power and authority and have been duly
authorized by all requisite action (corporate or otherwise) of
the Custodian, and the Custodian has all necessary regulatory
authorisations to perform its functions under this Agreement and
the Service Documentation; and
(ii) this Agreement constitutes a legal, valid and binding obligation
of the Custodian enforceable against the Custodian, except as
may be limited by bankruptcy, insolvency or other similar laws
affecting the enforcement of creditors' rights in general and
subject to the effect of general principles of equity
(regardless of whether considered in a proceeding in equity or
at law).
(iii) without prejudice to the Custodian's existing obligations and
the limitations thereon, the Custodian has developed and is
implementing programs to help assure that its relevant systems
(including, but not limited to, the Xxxxxx Xxxxxxx, Xxxx Xxxxxx
& Co. "TAPS" custody system as licensed to the Custodian) and
business processes will be capable of processing on and after:
(a) January 1, 2000, date and date related data consistent with
the functionality of such systems and applications; and (b)
January 1, 1999 data relating to EMU and the euro.
STANDARD OF CARE; INDEMNIFICATION
15.(a) The Custodian shall be responsible for the performance of only such
duties as are set forth in this Agreement or contained in Authorized
Instructions given to the Custodian which are not contrary to the
provisions of any relevant law or regulation. The Custodian shall be
liable to the Client for, and shall indemnify the Client for and hold
it harmless from, any loss, liability or expense (including reasonable
attorney's fees and disbursements) incurred by the Client in
connection with this Agreement to the extent that any such loss,
liability or expense results directly from the negligence, wilful
default or fraud of the Custodian or breach of the terms of this
Agreement by the Custodian. In addition, the Custodian shall be liable
to the Client for, and shall indemnify the Client for and hold it
harmless from, any loss, liability or expense (including reasonable
attorney's fees and disbursements) incurred by the Client in
connection with this
10
Agreement to the extent that any such loss, liability or expense results
directly from the negligence, wilful default or fraud of the Custodian or
breach of the terms of this Agreement by the Custodian. In addition, the
Custodian shall be liable to the Client for, and shall
indemnify the Client for and hold it harmless from, any loss, liability or
expense (including reasonable attorney's fees and disbursements) incurred
by the Client in connection with this Agreement to the extent that any such
loss, liability or expense results directly from the negligence, wilful
default or fraud of any Subcustodian or breach of the terms of this
Agreement by the Subcustodian. The Custodian shall have no liability for
any consequential loss, liability or expense (including, but not limited
to, lost profits) (collectively "Losses") caused by or otherwise
attributable to a Subcustodian and suffered by the Client entity where such
Losses arose as a result or consequence of special circumstances peculiar
to the entity incurring such Losses and regardless of whether the Custodian
(or the Subcustodian) had been advised as to the possibility of such Losses
and regardless of the form of the action. The Custodian confirms that its
liability shall include, without limitation, (and notwithstanding the
limitation of liability set forth in the previous sentence) any Losses
incurred by the applicable Client entity on account of: (1) a "Change in
the Market Value of a Security" (as defined in the next sentence hereof)
where the applicable entity had instructed the Custodian to deliver out
(receive in) a security in connection with the sale (purchase) of such
security by such entity but which trade failed on account of a
Subcustodian's negligence, wilful default, fraud or breach of the terms of
this Agreement; (2) a Change in the Market Value of a Security where a
purchase transaction advised to the Custodian in the normal course of
business failed on account of the applicable Client entity having
insufficient funds in its Accounts, to the extent that such insufficiency
resulted from a Subcustodian's negligence, wilful default, fraud or breach
of the terms of this Agreement. The term "Change in the Market Value of a
Security" shall mean the difference determined by subtracting the closing
price of such Security on the original (failed) trade date for such
security from the closing price of such Security on the actual trade date
for such Security where, in the case of a sale, the difference is a
negative number and, in the case of a purchase, the difference is a
positive number.
(b) The Client acknowledges that the Securities may be physically held outside
the United States. The Custodian shall not be liable for any loss,
liability or expense resulting from events beyond the reasonable control of
the Custodian or any Subcustodian, including, but not limited to, force
majeure, except to the extent that it results directly from the negligence,
wilful misconduct or fraud of the Custodian or any Subcustodian. Without
limiting the foregoing, the Custodian shall not be liable for any loss
which results from: 1) the general risk of investing, or 2) investing or
holding Property in a particular country including, but not limited to,
losses resulting from malfunction, interruption of or error in the
transmission of information caused by any machines or system or
interruption of communication facilities, abnormal operating conditions,
nationalization, expropriation or other governmental actions; regulation of
the Custodian or securities industry; currency restrictions, devaluations
or fluctuations; and market conditions which prevent the orderly execution
of securities transactions or affect the value of Property; except that,
with respect to the failure of machines, systems, interruption of
communication facilities or abnormal operating conditions on Custodian or a
Subcustodian's premises or otherwise within the control of Custodian or a
Subcustodian, Custodian shall not be so excused to the extent that such
failure was on account of Custodian's or the Subcustodian's (as the case
may be) negligence or wilful misconduct (such as a failure to have had
routine maintenance performed or to have selected equipment reasonably
suitable for the purposes contemplated hereby) given, in the case of
Subcustodians.
(c) In addition, the Client shall indemnify the Custodian and Subcustodians and
their respective nominees for, and hold each of them harmless from, any
liability, loss or expense (including attorneys' fees and disbursements) to
the extent incurred in connection with this Agreement together with,
without limitation, the Service Documentation, including without
limitation,
11
(i) as a result of the Custodian having acted or relied upon any
Authorized Instructions received by the Custodian in accordance
with or as provided in Section 10; or
(ii) arising out of any such person being a nominee or holder of record
of Securities,
save to the extent that any such liability or expense results directly from
the negligence, wilful misconduct or fraud of or breach of the terms of
this Agreement by the Custodian or any Subcustodian.
FEES
16(a) The Client shall pay to the Custodian from time to time such compensation
for its services pursuant to this Agreement as may be mutually agreed
upon.
(b) The Client shall hold the Custodian harmless from any liability or loss
resulting from any taxes or other governmental charges, and any expenses
related thereto, which may be imposed or assessed with respect to the
Accounts or any Property held therein, in each case arising from the
performance by the Custodian of its duties and functions under this
Agreement; provided that the Custodian shall remain liable for any loss,
liability or expense for which it would be liable under Section 15.
(c) Nothing in this Agreement shall authorize the Custodian or any
Subcustodian to charge or debit the Cash Accounts for any amounts due and
payable by the Client to the Custodian under this Section 16 which
amounts shall be invoiced to the Client in accordance with the provisions
of the Service Documentation.
(d) All amounts owing to the Custodian under this Clause 16 or under Clauses
13 or 15 shall be direct payment obligations of the Client to the
Custodian.
TERMINATION
17(a) Either party hereto may terminate this Agreement on giving not less than
90 days prior written notice to the other. Any notice to terminate shall
be sent by registered mail.
(b) If notice to terminate is given, the Client shall, within 30 days
following the giving of such notice, deliver to the Custodian a statement
in writing specifying the successor custodian or other person to whom the
Custodian shall transfer the Property. In either event, the Custodian
shall transfer the Property to the person so specified. If the Custodian
does not receive such statement the Custodian, at its election, may
transfer the Property to a bank or trust company established under the
laws of the United States or any state thereof and that satisfies the
requirements of Section 2(a)(5) of the Investment Company Act of 1940, to
be held and disposed of pursuant to the provisions of this Agreement or
may continue to hold the Property until such a statement is delivered to
the Custodian. In such event the Custodian shall be entitled to
compensation, on the basis of the agreed compensation applicable at the
time, for its services during such period as the Custodian remains in
possession of any Property and the provisions of this Agreement relating
to the duties and obligations of the Custodian shall remain in full force
and effect; provided, however, that the Custodian shall have no
obligation to settle any transactions in Securities for the Accounts at
any time later than 60 days after the date by which the Client is obliged
to give the Custodian the notice required to be given under this
12
Section 17(b). The provisions of Sections 15, 16, 19, 22 and 23 shall
survive termination of this Agreement.
INVESTMENT ADVICE
18. The Custodian shall not supervise, recommend or advise the Client
relative to the investment, purchase, sale, retention or other disposition of
any Property held under this Agreement. Nothing in this Agreement shall require
or oblige the Custodian to act otherwise than as a custodian. In that regard and
only to the extent not otherwise provided in this Agreement, the Custodian shall
have no duty or responsibility to: (i) question Authorized Instructions or make
any suggestions to Client or an Authorized Person regarding such Authorized
Instructions; (ii) advise the Client or an Authorized Person regarding any
default in the payment of principal or income of any security other than as
provided in Section 7A hereof; (iii) evaluate or report to the Client or an
Authorized Person regarding the financial condition of any broker, agent or
other party to which Property is delivered or payments are made pursuant hereto;
and (iv) review or reconcile trade confirmations received from brokers. The
Client or its Authorized Persons issuing Authorized Instructions shall bear any
responsibility to review such confirmations against Authorized Instructions
issued to and statements issued by the Custodian.
CONFIDENTIALITY
19(a) The Custodian, its agents and employees shall maintain the
confidentiality of information concerning the Property held in the
Accounts, including in dealings with affiliates of the Custodian. In
addition, the Custodian shall use all reasonable efforts to ensure that
the organisation of the department carrying out its duties hereunder is
such that knowledge of the Client's investment activities and policies is
not available to any officers and departments of the Custodian concerned
with dealing, managing or advising on securities. In the event the
Custodian or any Subcustodian is requested or required to disclose any
confidential information concerning the Property, the Custodian shall, to
the extent practicable and legally permissible, promptly notify the
Client of such request or requirement so that the Client may seek a
protective order or waive any objection to the Custodian's or such
Subcustodian's compliance with this Section 19. In the absence of such a
waiver, if the Custodian or such Subcustodian is compelled, in the
opinion of its counsel, to disclose any confidential information, the
Custodian or such Subcustodian may disclose such information to such
persons as, in the opinion of counsel, is so required.
(b) The Client shall maintain the confidentiality of, and not provide to any
third parties absent the written permission of the Custodian, any
computer software, hardware or communications facilities made available
to the Client or its agents by the Custodian.
NOTICES; COMMUNICATIONS AND CLIENT SUPPORT
20. Any notice or other communication from the Client to the Custodian, unless
otherwise provided by this Agreement, shall be sent by facsimile and by
certified or registered mail to The Chase Manhattan Bank, 4 Chase MetroTech
Center, Brooklyn, N.Y. 11245, Attention: Global Investor Services, and any
notices or other communications from the Custodian to the Client relating to the
custody services provided to the Client by the Custodian under this Agreement,
including any reports and other information provided to the Client pursuant to
Section 5 and, if so requested by the Client, any invoices for amounts owing to
the Custodian pursuant to Section 16 of this Agreement, shall be made from the
Custodian's address appearing above, or as it may hereafter be changed on the
Custodian's records in accordance with written notice from the Client. The
principal location from which client support
13
services shall be provided by the Custodian in connection with this Agreement
shall be the Custodian's address appearing above. Any notice or other
communication from the Custodian to the Client, unless otherwise provided in
this Agreement or any service level documentation, shall be sent by certified or
registered mail to iShares, Inc., c/o PFPC, Inc., 000 Xxxxxxxx Xxxxxxx,
Xxxxxxxxxx, Xxxxxxxx 00000, Attention: Fund Administration.
ASSIGNMENT
21. This contract may not be assigned by either party in whole or in part
without the prior written approval of the other.
VARIATION AND WAIVER
22(a) Subject to Section 1(d), no variation of any of the terms of this
Agreement shall be valid unless it is in writing and signed by or on
behalf of the parties hereto. The expression "variation" shall include
any variation, supplement, deletion or replacement however effected.
(b) Any delay by either party in exercising, or failure to exercise, any
right or remedy under this Agreement shall not constitute a waiver of the
right or remedy or a waiver of any other rights or remedies and no single
or partial exercise of any rights or remedy under this Agreement or
otherwise shall prevent any further exercise of the right or remedy or
the exercise of any other right or remedy.
MISCELLANEOUS
23(a) This Agreement shall bind the successors and any permitted assigns of the
Client and the Custodian.
(b) If Client is acting as an agent for a disclosed or undisclosed principal
in respect of any transaction or Property, the Custodian nevertheless
shall treat the Client as its principal for all purposes under this
Agreement. In this regard, the Client shall be liable to the Custodian as
a principal in respect of any transactions relating to the Account. The
foregoing shall not affect any rights the Custodian might have against
the Client's principal.
(c) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, APPLICABLE TO AGREEMENTS MADE AND TO BE
PERFORMED IN NEW YORK. The Custodian and the Client hereby irrevocably
submit to the non-exclusive jurisdiction of a state or federal court
situated in New York City, New York in connection with any dispute
arising hereunder and hereby irrevocably waive any objection to the venue
of any such action or proceeding brought in any such court or any defence
of an inconvenient forum.
(d)
---
(i) The following Rider(s) are incorporated into this Agreement:
___ Cash Trade Execution;
_X__ Investment Company
14
_X__ Domestic and Global Special Terms and Conditions
_X__ Global Proxy Service
(ii) This Agreement, including the Schedules, Exhibits, and Riders (and
any separate agreement which Custodian and Client may enter into with respect to
any Cash Account), sets out the entire Agreement between the parties in
connection with the subject matter, and this Agreement supersedes any other
agreement, statement, or representation relating to custody, whether oral or
written. Amendments must be in writing and signed by both parties.
(e) Custodian's Right Over Property; Set-off; Each iShares MSCI Index Fund
-----------------------------------------------------------------------
Separate.
---------
(i) Client grants Custodian a security interest in and a lien on the
Property held in the securities account as security for any and all amounts
which are now or become owing to Custodian under any provision of this
Agreement, whether or not matured or contingent ("Indebtedness").
(ii) Custodian shall be further entitled to set-off any such Indebtedness
against any cash or deposit account with Custodian or any of its Affiliates of
which Client is the beneficial owner, regardless of the currency involved.
Custodian shall notify Client in advance of any such charge.
(iii) With respect to any obligations of Client on behalf of any
particular iShares MSCI Index Fund arising hereunder, Custodian shall look for
payment or satisfaction of any such obligation solely to the Property
attributable to such iShares MSCI Index Fund and Client's Accounts to which such
obligation relates as though that iShares MSCI Index Fund had separately
contracted with Custodian by separate written agreement with respect to such
Accounts. The rights and benefits to which Client on behalf of any particular
iShares MSCI Index Fund is entitled hereunder shall be solely those of Client on
behalf of the particular iShares MSCI Index Fund and no other iShares MSCI Index
Fund shall receive such benefits. For avoidance of doubt, Client may terminate
this Agreement on behalf of any particular iShares MSCI Index Fund pursuant to
its provisions and the Agreement shall survive such termination in respect of
the remaining iShares MSCI Index Funds that have not so terminated or been
terminated.
15
IN WITNESS WHEREOF, the parties hereto have set their hands as of the date first
above written.
iSHARES, INC.
By /s/ Nate Most
--------------
Name: Nate Most
Title: President
Accepted:
THE CHASE MANHATTAN BANK
By /s/ Xxxxx Xxxxxxxxx
--------------------
Name: Xxxxx X. Xxxxxxxxx
Title: VP Relationship Manager
16
Investment Company Rider to Global Custody Agreement
Between The Chase Manhattan Bank and
iShares, Inc.
effective January 30, 2001
The following modifications are made to the Agreement:
I. Add the following language to the end of Section 3 of the Agreement:
In addition to the foregoing, the term Subcustodian as used herein shall be
limited to the following:
(a) a "U.S. Bank," which shall mean a U.S. bank as defined in rule 17f-
5(a)(7); and
(b) an "Eligible Foreign Custodian," which, as defined in rule 17f-5(a)(1)
and (5), shall mean (i) a banking institution or trust company,
incorporated or organized under the laws of a country other than the United
States, that is regulated as such by that country's government or an agency
thereof, and (ii) a majority-owned direct or indirect subsidiary of a U.S.
Bank or bank holding company which subsidiary is incorporated or organized
under the laws of a country other than the United States. In addition, an
Eligible Foreign Custodian shall also mean any other entity that shall have
been so qualified by exemptive order, rule or other appropriate action of
the SEC.
The term "securities depository" as used herein shall be limited to the
following, when referring to a securities depository located:
(a) outside the U.S., an "Eligible Securities Depository" which, in turn,
shall have the same meaning as in rule 17f-7(b)(1)(i)-(vi) as the same may
be amended from time to time, or that has otherwise been made exempt by an
SEC exemptive order, rule or other appropriate SEC action, except that
prior to the compliance date with rule 17f-7 for a particular securities
depository the term "securities depositories" shall be as defined in
(a)(1)(ii)-(iii) of the 1997 amendments to rule 17f-5; and
(b) in the U.S., shall mean a "securities depository" as defined in SEC
rule 17f-4(a).
For purposes of provisions of the Agreement imposing liability on
Custodian, the term Subcustodian shall not include any securities
depository.
II. Add a new Section 24 to the Agreement as follows:
24. Compliance with Securities and Exchange Commission rule 17f-5 ("rule
--------------------------------------------------------------------
17f-5").
--------
(a) Client's board of directors (or equivalent body) (hereinafter "Board")
hereby delegates to Custodian, and Custodian hereby accepts the delegation to it
of, the obligation to perform as Client's "Foreign Custody Manager" (as that
term is defined in rule 17f-5(a)(3)), including for the purpose of selecting
Eligible Foreign Custodians (as that term is defined in rule 17f-5(a)(1), as the
same may be amended from time to time or that have otherwise been made exempt by
SEC exemptive order, rule other
appropriate SEC action) to hold Client's foreign Assets and of evaluating the
contractual arrangements with such Eligible Foreign Custodians (as set forth in
rule 17f-5(c)(2)).
(b) In connection with the foregoing, Custodian shall:
(i) provide written reports notifying Client's Board of the placement of
Foreign Assets with particular Eligible Foreign Custodians and of any
material change in the arrangements with such Eligible Foreign Custodians,
with such reports to be provided to Client's Board at such times as the
Board deems reasonable and appropriate based on the circumstances of
Client's foreign custody arrangements but until further notice from Client
requesting a different schedule, such reports shall be provided not less
than quarterly in summary form, with a more detailed report annually.
(ii) exercise such reasonable care, prudence and diligence in performing
as Client's Foreign Custody Manager as a person having responsibility for
the safekeeping of Foreign Assets would exercise;
(iii) in selecting an Eligible Foreign Custodian, first have determined
that Foreign Assets placed and maintained in the safekeeping of such
Eligible Foreign Custodian shall be subject to reasonable care, based on
the standards applicable to custodians in the relevant market, after having
considered all factors relevant to the safekeeping of such Assets,
including, without limitation, those factors set forth in rule 17f-
5(c)(1)(i)-(iv);
(iv) determine that the written contract with the Eligible Foreign
Custodian requires that the Eligible Foreign Custodian will provide
reasonable care for Foreign Assets based on the standards applicable to
custodians in the relevant market as provided in rule 17f-5(c)(2); and
(v) have established a system to monitor the continued appropriateness of
maintaining Foreign Assets with particular Eligible Foreign Custodians and
performance of the governing contractual arrangements; it being understood,
however, that in the event that Custodian shall have determined that the
existing Eligible Foreign Custodian in a given country would no longer
afford Foreign Assets reasonable care and that no other Eligible Foreign
Custodian in that country would afford reasonable care, Custodian shall
promptly so advise Client and shall then act in accordance with the
Instructions of Client with respect to the disposition of the affected
Foreign Assets.
Subject to (b)(i)-(v) above, Client is hereby authorized to place and maintain
Foreign Assets on behalf of Client with Eligible Foreign Custodians pursuant to
a written contract deemed appropriate by Custodian.
(c) Except as expressly provided herein and in Section 25 hereof, Client
shall be solely responsible to assure that the maintenance of Foreign Assets
hereunder complies with the rules, regulations, interpretations and exemptive
orders promulgated by or under the authority of the SEC.
(d) Custodian represents to Client that it is a U.S. Bank as defined in
rule 17f-5(a)(7). Client represents to Custodian that: (1) the Assets being
placed and maintained in Custodian's custody are subject to the Investment
Company Act of 1940, as amended (the "1940 Act") as the same may be amended from
time to time; (2) its Board (or other governing body) has determined that it is
reasonable to rely on Custodian to perform as Client's Foreign Custody Manager;
and (3) its Board (or other governing body) or its investment adviser shall have
determined that Client may maintain Foreign Assets in each country in which
Client's Foreign Assets shall be held hereunder and determined to accept the
risks arising therefrom (including, but not limited to, a country's financial
infrastructure, prevailing custody and settlement practices, laws applicable to
the safekeeping and recovery of Foreign Assets held in custody, and the
2
likelihood of nationalization, currency controls and the like) (collectively
("Country Risk")). Nothing contained herein shall require Custodian to make any
selection on behalf of Client that would entail consideration of Country Risk
and, except as may be provided in (e) below, to engage in any monitoring of
Country Risk.
(e) Custodian shall provide to Client such information relating to Country
Risk as is specified in Appendix 1-A hereto. Client hereby acknowledges that:
(i) such information is solely designed to inform Client of market conditions
and procedures and is not intended as a recommendation to invest or not invest
in particular markets; and (ii) Custodian has gathered the information from
sources it considers reliable, but that Custodian shall have no responsibility
for inaccuracies or incomplete information.
III. Add a new Section 25 to the Agreement as follows:
25. Compliance with Securities and Exchange Commission rule 17f-7 ("rule
--------------------------------------------------------------------
17f-7").
-------
(a) Custodian shall, for consideration by Client, provide an analysis of
the custody risks associated with maintaining Client's Foreign Assets with each
Eligible Securities Depository used by Custodian as of the date hereof (or, in
the case of an Eligible Securities Depository not used by Custodian as of the
date hereof, prior to the initial placement of Client's Foreign Assets at such
Depository) and at which any Foreign Assets of Client are held or are expected
to be held. Custodian shall monitor the custody risks associated with
maintaining Client's Foreign Assets at each such Eligible Securities Depository
on a continuing basis and shall promptly notify Customer or its adviser of any
material changes in such risks.
(b) Custodian shall exercise reasonable care, prudence and diligence in
performing the requirements set forth in Section 25(a) above.
(c) Based on the information available to it in the exercise of
diligence, Custodian shall determine the eligibility under rule 17f-7 of each
depository before including it on Appendix 1-B hereto and shall promptly advise
Client if any Eligible Securities Depository ceases to be eligible. (Eligible
Securities Depositories used by Custodian as of the date hereof are set forth in
Appendix 1-B hereto, and as the same may be amended on notice to Client from
time to time.)
3
Appendix 1-A
Information Regarding Country Risk
----------------------------------
1. To aid Client in its determinations regarding Country Risk, Custodian
shall furnish annually and upon the initial placing of Foreign Assets into a
country the following information (check items applicable):
A Opinions of local counsel concerning:
___ i. Whether applicable foreign law would restrict the access afforded
Client's independent public accountants to books and records kept by
an Eligible Foreign Custodian located in that country.
___ ii. Whether applicable foreign law would restrict the Client's ability to
recover its assets in the event of the bankruptcy of an Eligible
Foreign Custodian located in that country.
___ iii. Whether applicable foreign law would restrict the Client's ability to
recover assets that are lost while under the control of an Eligible
Foreign Custodian located in the country.
B. Written information concerning:
___ i. The likelihood of expropriation, nationalization, freezes, or
confiscation of Client's assets.
___ ii. Whether difficulties in converting Client's cash and cash equivalents
to U.S. dollars are reasonably foreseeable.
C. A market report with respect to the following topics:
(i) securities regulatory environment, (ii) foreign ownership restrictions,
(iii) foreign exchange, (iv) securities settlement and registration, (v)
taxation, (vi) market settlement risk, (vii) Eligible Securities
Depositories (including Depository evaluation), if any.
2. Custodian shall furnish the following additional information:
Market flashes, including with respect to changes in the information in
market reports.
4
--------------------------
GLOBAL INVESTOR SERVICES
--------------------------
Securities Depositories
As of January 17, 2001
Appendix 1-B
ELIGIBLE SECURITIES DEPOSITORIES
As of January 17, 2001
------------------------------------------------------------------------------------------------------------------------------
Country Depository Instruments
------------------------------------------------------------------------------------------------------------------------------
Argentina CVSA Equity, Corporate Debt, Government Debt
(Caja de Valores S.A.)
------------------------------------------------------------------------------------------------------------------------------
Argentina CRYL Government Debt
(Central de Registration y Liquidacion de
Instrumentos de Endeudamiento Publico)
------------------------------------------------------------------------------------------------------------------------------
Australia Austraclear Limited Corporate Debt, Money Market, Semi-Government Debt
------------------------------------------------------------------------------------------------------------------------------
Australia CHESS Equity
(Clearing House Electronic Sub-register System)
------------------------------------------------------------------------------------------------------------------------------
Australia RITS Government Debt
(Reserve Bank of Australia/Reserve Bank
Information and Transfer System)
------------------------------------------------------------------------------------------------------------------------------
Austria OeKB Equity, Corporate Debt, Government Debt
(Oesterreichische Kontrollbank AG)
------------------------------------------------------------------------------------------------------------------------------
Belgium CIK Equity, Corporate Debt
(Caisse Interprofessionnelle de Depots et de
Virements de Titres S.A.)
------------------------------------------------------------------------------------------------------------------------------
Xxxxxxx XXX Corporate Debt, Government Debt
(National Bank of Belgium)
------------------------------------------------------------------------------------------------------------------------------
Brazil CBLC Equity
(Companhia Brasileira de Liquidacao e Custodia)
------------------------------------------------------------------------------------------------------------------------------
Brazil CETIP Corporate Debt
(Central de Custodia e Liquidacao Financiera de
Titulos Privados)
------------------------------------------------------------------------------------------------------------------------------
Brazil SELIC Government Debt
(Sistema Especial de Liquidacao e Custodia)
------------------------------------------------------------------------------------------------------------------------------
Bulgaria BNB Government Debt
------------------------------------------------------------------------------------------------------------------------------
1
--------------------------
GLOBAL INVESTOR SERVICES
--------------------------
Securities Depositories
As of January 17, 2001
------------------------------------------------------------------------------------------------------------------------------
Country Depository Instruments
------------------------------------------------------------------------------------------------------------------------------
(Bulgaria National Bank)
-----------------------------------------------------------------------------------------------------------------------------
Bulgaria CDAD Equity, Corporate Debt
(Central Depository A.D.)
------------------------------------------------------------------------------------------------------------------------------
Canada CDS Equity, Corporate, Government Debt
(The Canadian Depository for Securities Limited)
------------------------------------------------------------------------------------------------------------------------------
2
---------------------------------------------------------------------------------------------------
Country Depository Instruments
---------------------------------------------------------------------------------------------------
Chile DCV Equity, Corporate Debt, Government Debt
(Deposito Central de Valores S.A.)
---------------------------------------------------------------------------------------------------
China, SSCCRC Equity
Shanghai (Shanghai Securities Central Clearing
and Registration Corporation)
---------------------------------------------------------------------------------------------------
China, SSCC Equity
Shenzhen (Shenzhen Securities Clearing
Company, Limited)
---------------------------------------------------------------------------------------------------
Colombia DCV Government Debt
(Deposito Central de Valores)
---------------------------------------------------------------------------------------------------
Colombia DECEVAL Equity, Corporate Debt, Government Debt
(Deposito Centralizado de Valores de
Colombia S.A.)
---------------------------------------------------------------------------------------------------
Croatia SDA Equity, Government Debt
(Central Depository Agency Inc. -
Stredisnja depozitarna agencija d.d.)
---------------------------------------------------------------------------------------------------
Croatia Ministry of Finance of the Republic Short-term debt issued by the Ministry of
of Croatia Finance.
---------------------------------------------------------------------------------------------------
Croatia CNB Short-term debt issued by the National
(Croatian National Bank) Bank of Croatia.
---------------------------------------------------------------------------------------------------
Czech Republic SCP Equity, Corporate Debt, Government Debt
(Stredisko cennych papiru)
---------------------------------------------------------------------------------------------------
Czech Republic CNB Government Debt
(Czech National Bank)
---------------------------------------------------------------------------------------------------
Denmark VP Equity, Corporate Debt, Government Debt
(Vaerdipapircentralen A/S)
---------------------------------------------------------------------------------------------------
Egypt MCSD Equity, Corporate Debt
(Misr for Clearing, Settlement and
Depository, S.A.E.)
---------------------------------------------------------------------------------------------------
Estonia ECDS Equity, Corporate Debt, Government Debt
(Estonian Central Depository for
Securities Limited - Eesti
Vaatpaberite Keskdepositoorium)
---------------------------------------------------------------------------------------------------
Euromarket DCC Euro-CDs
(The Depository and Clearing Centre)
---------------------------------------------------------------------------------------------------
Euromarket Clearstream Euro-Debt
(Clearstream Banking, S.A.)
---------------------------------------------------------------------------------------------------
--------------------------
GLOBAL INVESTOR SERVICES
--------------------------
Securities Depositories
As of January 17, 2001
---------------------------------------------------------------------------------------------------
Country Depository Instruments
---------------------------------------------------------------------------------------------------
Euromarket Euroclear Euro-Debt
---------------------------------------------------------------------------------------------------
Finland APK Equity, Corporate Debt, Government Debt
(Finnish Central Securities
Depository Limited)
----------------------------------------------------------------------------------------------------
France Euroclear France Equity, Corporate Debt, Government Debt
----------------------------------------------------------------------------------------------------
Germany Clearstream Equity, Corporate Debt, Government Debt
(Clearstream Banking AG)
----------------------------------------------------------------------------------------------------
Greece CSD Equity, Corporate Debt
(Central Securities Depository S.A.)
----------------------------------------------------------------------------------------------------
Greece BoG Government Debt
(Bank of Greece)
----------------------------------------------------------------------------------------------------
Hong Kong HKSCC Equity
(Hong Kong Securities Clearing
Company Limited)
----------------------------------------------------------------------------------------------------
Hong Kong CMU Corporate Debt, Government Debt
(Central Moneymarkets Unit)
----------------------------------------------------------------------------------------------------
Hungary KELER Equity, Corporate Debt, Government Debt
(Central Depository and Clearing
House - Kosponti Elszamolohaz es
Ertektar (Budapest) Rt.)
----------------------------------------------------------------------------------------------------
India NSDL Equity, Corporate Debt, Government Debt
(National Securities Depository
Limited)
----------------------------------------------------------------------------------------------------
India CDSL Equity
(Central Depository Services (India)
Limited)
----------------------------------------------------------------------------------------------------
India RBI Government Debt
(Reserve Bank of India)
----------------------------------------------------------------------------------------------------
Indonesia KSEI Equity, Corporate Debt
(PT Kustodian Sentral Efek Indonesia)
----------------------------------------------------------------------------------------------------
Ireland CREST Equity, Corporate Debt
(CRESTCo Limited)
----------------------------------------------------------------------------------------------------
2
--------------------------
GLOBAL INVESTOR SERVICES
--------------------------
Securities Depositories
As of January 17, 2001
---------------------------------------------------------------------------------------------------
Country Depository Instruments
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Israel TASE Clearing House Equity, Corporate Debt, Government Debt
(Tel Aviv Stock Exchange Clearing
House)
----------------------------------------------------------------------------------------------------
Italy Monte Titoli S.p.A. Equity, Corporate Debt, Government Debt
----------------------------------------------------------------------------------------------------
Italy Banca d'Italia Government Debt
----------------------------------------------------------------------------------------------------
3
----------------------------------------
GLOBAL INVESTOR SERVICES
----------------------------------------
Securities Depositories
As of January 17, 2001
----------------------------------------------------------------------------------------------------
Country Depository Instruments
----------------------------------------------------------------------------------------------------
Ivory Coast DC/BR Equity
(Le Depositaire Central / Banque de
Reglement)
----------------------------------------------------------------------------------------------------
Japan JASDEC Equity, Convertible Debt
(Japan Securities Depository Center)
----------------------------------------------------------------------------------------------------
Japan BoJ Registered Government Debt
(Bank of Japan)
----------------------------------------------------------------------------------------------------
Kazahkstan CSD Equity
(Central Securities Depository CJSC)
----------------------------------------------------------------------------------------------------
Kenya CBCD Government Debt
(Central Bank Central Depository)
----------------------------------------------------------------------------------------------------
Latvia LCD Equity, Corporate Debt, Government Debt
(Latvian Central Depository)
----------------------------------------------------------------------------------------------------
Lebanon Midclear X.X.X. Equity
(Custodian and Clearing Center of
Financial Instruments for Lebanon and
the Middle East X.X.X.)
----------------------------------------------------------------------------------------------------
Lithuania CSDL Equity, Corporate Debt, Government Debt
(Central Securities Depository of
Lithuania)
----------------------------------------------------------------------------------------------------
Luxembourg Clearstream Equity
(Clearstream Banking S.A.)
----------------------------------------------------------------------------------------------------
Malaysia MCD Equity, Corporate Debt, Government Debt
(Malaysian Central Depository Sdn.
Bhd.)
----------------------------------------------------------------------------------------------------
Mauritius CDS Equity, Corporate Debt
(Central Depository and Settlement
Company Limited)
----------------------------------------------------------------------------------------------------
Mexico INDEVAL Equity, Corporate Debt, Government Debt
(S.D. INDEVAL S.A. de C.V.)
----------------------------------------------------------------------------------------------------
Morocco Maroclear Equity, Corporate Debt, Government Debt
----------------------------------------------------------------------------------------------------
Netherlands NECIGEF Equity, Corporate Debt, Government Debt
(Nederlands Centraal Insituut voor
Giraal Effectenverkeer B.V.)
----------------------------------------------------------------------------------------------------
New Zealand NZCSD Equity, Corporate Debt, Government
----------------------------------------------------------------------------------------------------
4
----------------------------------------
GLOBAL INVESTOR SERVICES
----------------------------------------
Securities Depositories
As of January 17, 2001
--------------------------------------------------------------------------------
Zealand (New Zealand Central Securities Depository) Debt
--------------------------------------------------------------------------------
5
----------------------------------------
GLOBAL INVESTOR SERVICES
----------------------------------------
Securities Depositories
As of January 17, 2001
-------------------------------------------------------------------------------------------------------------------------------
Country Depository Instruments
-------------------------------------------------------------------------------------------------------------------------------
Nigeria CSCS Equity, Corporate Debt, Government Debt
(Central Securities Clearing System Limited)
-------------------------------------------------------------------------------------------------------------------------------
Norway VPS Equity, Corporate Debt, Government Debt
(Verdipapirsentralen)
-------------------------------------------------------------------------------------------------------------------------------
Oman MDSRC Equity, Corporate Debt
(The Muscat Depository and Securities
Registration Company, S.A.O.C.)
-------------------------------------------------------------------------------------------------------------------------------
Pakistan CDC Equity, Corporate Debt
(Central Depository Company of Pakistan Limited)
-------------------------------------------------------------------------------------------------------------------------------
Pakistan SBP Government Debt
(State Bank of Pakistan)
-------------------------------------------------------------------------------------------------------------------------------
Peru CAVALI Equity, Corporate Debt, Government Debt
(CAVALI ICLV S.A.)
-------------------------------------------------------------------------------------------------------------------------------
Philippines PCD Equity
(Philippine Central Depository Inc.)
-------------------------------------------------------------------------------------------------------------------------------
Philippines XXXX Government Debt
(Bangko Sentral ng Pilipinas / Register of
Scripless Securities)
-------------------------------------------------------------------------------------------------------------------------------
Poland NDS Equity, Long-Term Government Debt
(National Depository for Securities S.A.)
------------------------------------------------------------------------------------------------------------------------------
Poland CRT Short-Term Government Debt
(Central Registry of Treasury-Bills)
-------------------------------------------------------------------------------------------------------------------------------
Portugal CVM Equity, Corporate Debt, Government Debt
(Central de Valores Mobiliarios e Sistema de
Liquidacao e Compensacao)
-------------------------------------------------------------------------------------------------------------------------------
Romania SNCDD Equity
(National Company for Clearing, Settlement and
Depository for Securities)
-------------------------------------------------------------------------------------------------------------------------------
Romania BSE Equity
(Bucharest Stock Exchange Registry)
-------------------------------------------------------------------------------------------------------------------------------
Russia VTB Equity, Corporate Debt, Government Debt (Ministry of
(Vneshtorgbank) Finance Bonds)
-------------------------------------------------------------------------------------------------------------------------------
6
----------------------------------------
GLOBAL INVESTOR SERVICES
----------------------------------------
Securities Depositories
As of January 17, 2001
---------------------------------------------------------------------------------------------------
Country Depository Instruments
---------------------------------------------------------------------------------------------------
Russia NDC Equity, Corporate Debt, Government Debt
(National Depository Centre)
---------------------------------------------------------------------------------------------------
Russia DCC Equity
(Depository Clearing Company)
---------------------------------------------------------------------------------------------------
Singapore CDP Equity, Corporate Debt
(The Central Depository (Pte) Limited)
---------------------------------------------------------------------------------------------------
Singapore SGS Government Debt
(Monetary Authority of Singapore /
Singapore Government Securities
Book-Entry System)
---------------------------------------------------------------------------------------------------
Slovak SCP Equity, Corporate Debt, Government Debt
Republic (Stredisko cennych papierov SR
Bratislava, a.s.)
---------------------------------------------------------------------------------------------------
Slovak NBS Government Debt
Republic (National Bank of Slovakia)
---------------------------------------------------------------------------------------------------
Slovenia KDD Equity, Corporate Debt, Government Debt
(Centralna klirinsko depotna xxxxxx
x.x.)
---------------------------------------------------------------------------------------------------
South Africa CDL Corporate Debt, Government Debt
(Central Depository (Pty) Limited)
---------------------------------------------------------------------------------------------------
South Africa STRATE Equity
(Share Transactions Totally
Electronic)
---------------------------------------------------------------------------------------------------
South Korea KSD Equity, Corporate Debt, Government Debt
(Korea Securities Depository)
---------------------------------------------------------------------------------------------------
Spain SCLV Equity, Corporate Debt
(Servicio de Compensacion y
Liquidacion de Valores, S.A.)
---------------------------------------------------------------------------------------------------
Spain CBEO Government Debt
(Banco de Espana / Central Book Entry
Office)
---------------------------------------------------------------------------------------------------
Sri Lanka CDS Equity, Corporate Debt
(Central Depository System (Private)
Limited)
---------------------------------------------------------------------------------------------------
Sweden VPC Equity, Corporate Debt, Government Debt
(Vardepapperscentralen AB)
---------------------------------------------------------------------------------------------------
7
----------------------------------------
GLOBAL INVESTOR SERVICES
----------------------------------------
Securities Depositories
As of January 17, 2001
----------------------------------------------------------------------------------------------------
Country Depository Instruments
----------------------------------------------------------------------------------------------------
Switzerland SIS Equity, Corporate Debt, Government Debt
(SIS SegaInterSettle AG)
----------------------------------------------------------------------------------------------------
Taiwan TSCD Equity, Government Debt
(Taiwan Securities Central Depository
Co., Ltd.)
----------------------------------------------------------------------------------------------------
Thailand TSD Equity, Corporate Debt, Government Debt
(Thailand Securities Depository
Company Limited)
----------------------------------------------------------------------------------------------------
Tunisia STICODEVAM Equity, Corporate Debt, Government Debt
(Societe Tunisienne
Interprofessionnelle pour la
Compensation et le Depot des Valeurs
Mobilieres)
----------------------------------------------------------------------------------------------------
Turkey TAKASBANK Equity, Corporate Debt, Government Debt
(IMKB Takas ve Saklama Bankasi A.S.)
----------------------------------------------------------------------------------------------------
United Kingdom CREST Equity, Corporate Debt, Government Debt
(CRESTCo Limited)
----------------------------------------------------------------------------------------------------
United Kingdom CMO Sterling & Euro CDs, Commercial Paper
(Central Moneymarkets Office)
----------------------------------------------------------------------------------------------------
United States DTC Equity, Corporate Debt
(Depository Trust Company)
----------------------------------------------------------------------------------------------------
United States PTC Mortgage Back Debt
(Participants Trust Company)
----------------------------------------------------------------------------------------------------
United States FED Government Debt
(The Federal Reserve Book-Entry
System)
----------------------------------------------------------------------------------------------------
Uruguay BCU Corporate Debt, Government Debt
(Banco Central del Uruguay)
----------------------------------------------------------------------------------------------------
Venezuela BCV Government Debt
(Banco Central de Venezuela)
----------------------------------------------------------------------------------------------------
Zambia CSD Equity, Government Debt
(XxXX Central Shares Depository
Limited)
----------------------------------------------------------------------------------------------------
ZAMBIA BOZ Government Debt
(Bank of Zambia)
----------------------------------------------------------------------------------------------------
8
GLOBAL PROXY SERVICE RIDER
To Global Custody Agreement
Between
THE CHASE MANHATTAN BANK
AND
iSHARES, INC.
dated January 30, 2001
1. Global Proxy Services ("Proxy Services") shall be provided for the
countries listed in the procedures and guidelines ("Procedures") furnished
to Client, as the same may be amended by Custodian from time to time on
prior notice to Client. The Procedures are incorporated by reference
herein and form a part of this Rider.
2. Proxy Services shall consist of those elements as set forth in the
Procedures, and shall include (a) notifications ("Notifications") by
Custodian to Client of the dates of pending shareholder meetings,
resolutions to be voted upon and the return dates as may be received by
Custodian or provided to Custodian by its Subcustodians or third parties,
and (b) voting by Custodian of proxies based on Client Instructions.
Original proxy materials or copies thereof shall not be provided.
Notifications shall generally be in English and, where necessary, shall be
summarized and translated from such non-English materials as have been made
available to Custodian or its Subcustodian. In this respect Custodian's
only obligation is to provide information from sources it believes to be
reliable and/or to provide materials summarized and/or translated in good
faith. Custodian reserves the right to provide Notifications, or parts
thereof, in the language received. Upon reasonable advance request by
Client, backup information relative to Notifications, such as annual
reports, explanatory material concerning resolutions, management
recommendations or other material relevant to the exercise of proxy voting
rights shall be provided as available, but without translation.
3. While Custodian shall attempt to provide accurate and complete
Notifications, whether or not translated, Custodian shall not be liable for
any losses or other consequences that may result from reliance by Client
upon Notifications where Custodian prepared the same in good faith.
4 Notwithstanding the fact that Custodian may act in a fiduciary capacity
with respect to Client under other agreements or otherwise under the
Agreement, in performing Proxy Services Custodian shall be acting solely as
the agent of Client, and shall not exercise any discretion with regard to
such Proxy Services.
5. Proxy voting may be precluded or restricted in a variety of circumstances,
including, without limitation, where the relevant Financial Assets are: (i)
on loan; (ii) at registrar for registration or reregistration; (iii) the
subject of a conversion or other corporate action; (iv) not held in a name
subject to the control of Custodian or its Subcustodian or are otherwise
held in a manner which precludes voting; (v) not capable of being voted on
account of local market regulations or practices or restrictions by the
issuer; or (vi) held in a margin or collateral account.
----------------------------------------
GLOBAL INVESTOR SERVICES
----------------------------------------
Securities Depositories
As of January 17, 2001
6 Client acknowledges that in certain countries Custodian may be unable to
vote individual proxies but shall only be able to vote proxies on a net
basis (e.g., a net yes or no vote given the voting instructions received
---
from all Clients).
7. Client shall not make any use of the information provided hereunder, except
in connection with the funds or plans covered hereby, and shall in no event
sell, license, give or otherwise make the information provided hereunder
available, to any third party, and shall not directly or indirectly compete
with Custodian or diminish the market for Proxy Services by provision of
such information, in whole or in part, for compensation or otherwise, to
any third party.
8. The names of Authorized Persons for Proxy Services shall be furnished to
Custodian in accordance with (S)10 of the Agreement. Proxy Services fees
shall be as set forth in (S)16 of the Agreement or as separately agreed.
2
DOMESTIC AND GLOBAL
SPECIAL TERMS AND CONDITIONS RIDER
----------------------------------
Domestic Corporate Actions and Proxies
--------------------------------------
With respect to domestic U.S. and Canadian Property (the latter only if held in
DTC), the following provisions shall apply rather than the pertinent provisions
of Section 8 of the Agreement and the Global Proxy Service rider:
Custodian shall send to Client or the Authorized Person for a Custody
Account, such proxies (signed in blank, if issued in the name of
Custodian's nominee or the nominee of a central depository) and
communications with respect to Financial Assets in the Custody Account as
call for voting or relate to legal proceedings within a reasonable time
after sufficient copies are received by Custodian for forwarding to its
Clients. In addition, Custodian shall follow coupon payments, redemptions,
exchanges or similar matters with respect to Financial Assets in the
Custody Account and advise Client or the Authorized Person for such Account
of rights issued, tender offers or any other discretionary rights with
respect to such Financial Assets, in each case, of which Custodian has
received notice from the issuer of the Financial Assets, or as to which
notice is published in publications routinely utilized by Custodian for
this purpose.
------------------------------------------
GLOBAL INVESTOR SERVICES
------------------------------------------
Securities Depositories
As of January 17, 2001
APPENDIX 2
(List of Accounts)
iShares Accounts
----------------
----------------------------------------------------------------------------------------------------------
Mnemonic Account Name GTI a/c no CUST NO.
----------------------------------------------------------------------------------------------------------
XATS iSHARES Austria Index Series 17167 6028450
----------------------------------------------------------------------------------------------------------
XAUD iSHARES Australia Index Series 17168 6028468
----------------------------------------------------------------------------------------------------------
XBEF iSHARES Belgium Index Series 17169 6028492
----------------------------------------------------------------------------------------------------------
XBRL iSHARES BRAZIL INDEX SERIES 19653 6033427
----------------------------------------------------------------------------------------------------------
XCAD iSHARES Canadian Index Series 17170 6028500
----------------------------------------------------------------------------------------------------------
XCHF iSHARES Switzerland Index Series 17171 6028518
----------------------------------------------------------------------------------------------------------
XDEM iSHARES Germany Index Series 17172 6028526
----------------------------------------------------------------------------------------------------------
XESP iSHARES Spain Index Series 17173 6028534
----------------------------------------------------------------------------------------------------------
XEUR iSHARES EURO INDEX SERIES 19652 6033468
----------------------------------------------------------------------------------------------------------
XFRF iSHARES France Index Series 18638 6072136
----------------------------------------------------------------------------------------------------------
XGBP iSHARES Great Britain Index Series 17174 6028542
----------------------------------------------------------------------------------------------------------
XHKD iSHARES Hong Kong Index Series 17175 6028559
----------------------------------------------------------------------------------------------------------
XITL iSHARES Italy Index Series 17176 6028567
----------------------------------------------------------------------------------------------------------
XJPY iSHARES Japan Index Series 17177 6028575
----------------------------------------------------------------------------------------------------------
XKRW iSHARES SOUTH KOREAN INDEX SERIES 19655 6033443
----------------------------------------------------------------------------------------------------------
XMXN iSHARES Mexican Index Series 17178 6028583
----------------------------------------------------------------------------------------------------------
XMYR iSHARES Malaysian Index Series 17179 6028591
----------------------------------------------------------------------------------------------------------
XNLG iSHARES Netherlands Index Series 17180 6028617
----------------------------------------------------------------------------------------------------------
XSEK iSHARES Sweden Index Series 17181 6028625
----------------------------------------------------------------------------------------------------------
XSGD iSHARES Singapore Index Series 17182 6028641
----------------------------------------------------------------------------------------------------------
XTWD iSHARES TAIWAN INDEX SERIES 19654 6033435
----------------------------------------------------------------------------------------------------------
2
------------------------------------------
GLOBAL INVESTOR SERVICES
------------------------------------------
Securities Depositories
As of January 17, 2001
----------------------------------------------------------------------------------------------------------
XUSA iSHARES USA INDEX SERIES 19650 6033419
----------------------------------------------------------------------------------------------------------
XZAR iSHARES SOUTH AFRICAN INDEX SERIES 19651 6033450
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
3
------------------------------------------
GLOBAL INVESTOR SERVICES
------------------------------------------
Securities Depositories
As of January 17, 2001
EXHIBIT A
SUB-CUSTODIANS EMPLOYED BY
--------------------------
THE CHASE MANHATTAN BANK, GLOBAL CUSTODY FOR iSHARES
----------------------------------------------------
COUNTRY SUB-CUSTODIAN CORRESPONDENT
------- ------------- -------------
BANK
----
AUSTRALIA The Chase Manhattan Bank The Chase Manhattan Bank
--------- Sydney
Xxxxx 00
XXX Xxxxxx
000, Xxxxxx Xxxxxx
Xxxxxx XXX 0000
XXXXXXXXX
BIC: XXXXXX0X BIC: XXXXXX0X
AUSTRIA Bank Austria XX Xxxxx Manhattan Bank AG
------- Xxxxxx Xxxxxxx Xxxxx - 0 Xxxxxxxxx
X-0000 Xxxxxx
XXXXXXX
BIC: XXXXXXXX BIC: XXXXXXXX
BELGIUM Generale Bank Chase Manhattan Bank AG
------- 0 Xxxxxxxx Xx Xxxx Xxxxxxxxx
0000 Xxxxxxxx
BELGIUM
BIC: XXXXXXXX BIC: XXXXXXXX
BRAZIL BankBoston, N.A. BankBoston, N.A.
4
------------------------------------------
GLOBAL INVESTOR SERVICES
------------------------------------------
Securities Depositories
As of January 17, 2001
Rua Libero Badaro, 425-29 andar Sao Paulo
Sao Paulo - SP 00000-000
XXXXXX
CVM: 06980.000043.057037.1-8
BIC: XXXXXXXXXXX BIC: XXXXXXXXXXX
CANADA The Royal Bank of Canada Royal Bank of Canada
------ 000 Xxx Xxxxxx, Xxxxx 0000 Xxxxxxx
00/xx/ Xxxxx
Xxxxx Xxxx Xxxxx, Xxxxx Xxxxx
Xxxxxxx
Xxxxxxx X0X 0X0
XXXXXX
BIC: XXXXXXXX BIC: XXXXXXXX
DENMARK Den Danske Bank Unibank
------- 2-12 Holmens Kanal Copenhagen (COSMIC)
DK 1092 Copenhagen K Den Danske Bank
DENMARK Copenhagen (TAPS)
BIC: XXXXXXXX BIC: XXXXXXXX
EUROMARKET Cedelbank EURO: Chase Manhattan Bank AG
---------- 00 Xx Xxxxxx-Xxxxxxxx Xxxxxxxxx Xxxxxxxxx
X-0000 XXXXXXXXXX
Euroclear
Euroclear Operations Xxxxxx
Xxxxxxxxx Xxxxx Xxxxxxxx 000
X-0000 Xxxxxxxx
XXXXXXX
5
------------------------------------------
GLOBAL INVESTOR SERVICES
------------------------------------------
Securities Depositories
As of January 17, 2001
FINLAND Xxxxxx Bank Plc Chase Manhattan Bank AG
------- 2598 Custody Services Frankfurt
Xxxxxxx Xxxxx Xxxx 0-0
XXX-00000 XXXXXX, Xxxxxxxx
XXXXXXX
BIC: XXXXXXXX BIC: XXXXXXXX
FRANCE Bank Paribas Chase Manhattan Bank AG
------ Xxx 000 Xxxxxxxxx
XX 000
0 Xxx X'Xxxxx
75078 Xxxxx
Xxxxx 00
XXXXXX
BIC: XXXXXXXX BIC: XXXXXXXX
GERMANY Dresdner Bank XX Xxxxx Manhattan Bank AG
------- Xxxxxxx-Xxxxx-Xxxxx 0 Xxxxxxxxx
00000 Xxxxxxxxx/Xxxx
XXXXXXX
BIC: XXXXXXXX BIC: XXXXXXXX
HONG KONG The Chase Manhattan Bank The Chase Manhattan Bank
--------- 00/xx/X Xxxxx Xxxxxxxxx Xxxxx Xxxx Xxxx
Shatin
New Territories
HONG KONG
BIC: XXXXXXXX BIC: XXXXXXXX
IRELAND Bank of Ireland Chase Manhattan Bank AG
------- Intl Financial Services Centre Frankfurt
6
------------------------------------------
GLOBAL INVESTOR SERVICES
------------------------------------------
Securities Depositories
As of January 17, 2001
0 Xxxxxxxxxxxxx Xxxxx
Xxxxxx 0
XXXXXXX
BIC: XXXXXX0X BIC: XXXXXXXX
ITALY Banque Paribas Chase Manhattan Bank AG
----- 2 Xxxxxx Xxx Xxxxxx Xxxxxxxxx
00000 Xxxxx
XXXXX
BIC: XXXXXXXX BIC: XXXXXXXX
JAPAN The Fuji Bank The Chase Manhattan Bank
----- 6-7 Nohombashi-Kabutocho Tokyo
Chuo-Ku
Tokyo
JAPAN
BIC: XXXXXXXX BIC: XXXXXXXX
MALAYSIA The Chase Manhattan Bank Berhad Chase Manhattan Bk Berhad
-------- Xxxxxx Xxxx, Xxxxx 00 Xxxxx Xxxxxx
Xxxxx Xxxxxx Xxxxxx
00000 Xxxxx Xxxxxx
MALAYSIA
BIC: XXXXXXXX BIC: XXXXXXXX
MEXICO Citibank Mexico, X.X. Xxxxx Manhattan Xxxx Xxxxxx, S.A.
Paseo de la reforma 390 BIC: XXXXXXXX
00000 Xxxxxx, X.X
XXXXXX
BIC: XXXXXX00XXX
7
------------------------------------------
GLOBAL INVESTOR SERVICES
------------------------------------------
Securities Depositories
As of January 17, 0000
XXXXXXXXXXX ABN AMRO N.V. Chase Manhattan Bank AG
----------- Kemelstede 2 Frankfurt
X. X. Xxx 0000
0000 XX Xxxxx
XXXXXXXXXXX
BIC: XXXXXX0X BIC: XXXXXXXX
NEW ZEALAND National Nominees Limited Bank of New Zealand
----------- Xxxxx 0 XXX Xxxxx Xxxxxxxxxx
000 Xxxxx Xxxxxx
Xxxxxxxx
XXX XXXXXXX
BIC: XXXXXX00 BIC: XXXXXX00
NORWAY Den norske Bank ASA Den norske Bank ASA
------ Xxxxxxxx 00 Xxxx
XX Xxx 0000 Xxxxxxx
X-0000 Xxxx
XXXXXX
BIC: XXXXXXXX BIC: XXXXXXXX
PORTUGAL Bco Xxxxxx Xxxxx e Com de Lisboa, Lisbon Chase Manhattan Bank AG
-------- 000 Xxxxxxx xx Xxxxxxxxx Xxxxxxxxx
X-0000 Xxxxxx
XXXXXXXX
BIC: XXXXXXXX BIC: XXXXXXXX
SINGAPOR Standard Chartered Bank The Chase Manhattan Bank
--------- 0/X, 0 Xxxxxxx Xxxx Xxxxxxxxx
8
---------------------------------------
GLOBAL INVESTOR SERVICES
---------------------------------------
Securities Depositories
As of January 17, 2001
049909
SINGAPORE
BIC: XXXXXXXX BIC: XXXXXXXX
SOUTH AFRICA Standard Chartered Bank of South Africa Standard Corporate
------------ 1st FL and Merchant Bank
0 Xxxxxxxx Xxxxxx
Xxxxxxxxxxxx 0000 BIC: XXXXXXXX
SOUTH AFRICA
BIC: XXXXXXXX
SOUTH KOREA Standard Chartered Bank Standard Chartered Bank
----------- 13/F, Nae Wei Building, 6 Seoul
2 KA, Ulchi-Ro, Chung-Ku
Seoul
SOUTH KOREA
Xxxxxxxx XX 00000 BIC: XXXXXXXXXXX
BIC: XXXXXXXXXXX
SPAIN Chase Manhattan Bank CMB, X.X. Xxxxx Manhattan Bank AG
----- Xxxxx xx xx Xxxxxxxxxx, 00 Xxxxxxxxx
00000 Xxxxxx
XXXXX
BIC: XXXXXXXX BIC: XXXXXXXX
SWEDEN Skandinaviska Enskilda Banken Svenska Handelsbanken
------ Xxxxxxx Xxxx 0 Xxxxxxxxx
XX-000 00 Xxxxxxxxx
XXXXXX
BIC: XXXXXXXX BIC: XXXXXXXX
SWITZERLAND UBS AG UBS AG
----------- 45 Xxxxxxxxxxxxxx Xxxxxx
0000 Xxxxxx
9
---------------------------------------
GLOBAL INVESTOR SERVICES
---------------------------------------
Securities Depositories
As of January 17, 0000
XXXXXXXXXXX
BIC: XXXXXXXX BIC: UBSWCHZ
TAIWAN The Hongkong and Shanghai Banking The Hongkong and Shanghai
------ International Trade Building Banking Corporation Limited
16th Floor, Taipei World Trade Center Taipei
000 Xxxxxxx Xxxx, Xxxxxxx 0
Xxxxxx 000
XXXXXX
BIC: XXXXXXXX BIC: XXXXXXXX
U.K. The Chase Manhattan Bank The Chase Manhattan Bank
---- Xxxxxx Court London
Ground Floor
00 Xxxxxxxxxxx
Xxxxxx XX0X 0XX
XXXXXX XXXXXXX
CREST ID: BT01C
BIC: XXXXXX0X BIC: XXXXXX0X
U.S.A. The Chase Manhattan Bank The Chase Manhattan Bank
------ 0 Xxx Xxxx Xxxxx Xxx Xxxx
Xxx Xxxx
XX 00000
U.S.A.
DTC: 902
Agent bank no: 00902
10
---------------------------------------
GLOBAL INVESTOR SERVICES
---------------------------------------
Securities Depositories
As of January 17, 2001
a/c no: PS35481
BIC: XXXXXX00 BIC: XXXXXX00
11
---------------------------------------
GLOBAL INVESTOR SERVICES
---------------------------------------
Securities Depositories
As of January 17, 2001
SCHEDULE ONE
------------
-------------------------------------------------------------------------------------------
Market AutoCredit CSDA Active Proxy Voting
(Sales & Purchases)
---------------------------------------------------------------------------------------------------
Argentina no Yes Yes
---------------------------------------------------------------------------------------------------
Australia Yes Yes Yes
---------------------------------------------------------------------------------------------------
Austria Yes Yes Yes
---------------------------------------------------------------------------------------------------
Bahrain no Yes Yes
---------------------------------------------------------------------------------------------------
Bangladesh no Yes Yes
---------------------------------------------------------------------------------------------------
Belgium Yes Yes Voting Only
---------------------------------------------------------------------------------------------------
Bermuda Yes Yes Yes
---------------------------------------------------------------------------------------------------
Botswana no Yes Voting Only
---------------------------------------------------------------------------------------------------
Brazil no Yes* Yes
---------------------------------------------------------------------------------------------------
Bulgaria no no Voting Only
---------------------------------------------------------------------------------------------------
Canada Yes Yes Yes
---------------------------------------------------------------------------------------------------
Chile no no Yes
---------------------------------------------------------------------------------------------------
Colombia no no Yes
---------------------------------------------------------------------------------------------------
Croatia no no Yes
---------------------------------------------------------------------------------------------------
Cyprus no no Voting Only
---------------------------------------------------------------------------------------------------
Czech Republic Yes Yes Yes
---------------------------------------------------------------------------------------------------
Denmark Yes Yes Yes
---------------------------------------------------------------------------------------------------
Ecuador no no Voting Only
---------------------------------------------------------------------------------------------------
Egypt no Yes Voting Only
---------------------------------------------------------------------------------------------------
Estonia Yes Yes Voting Only
---------------------------------------------------------------------------------------------------
Eurobonds Yes Yes n/a
---------------------------------------------------------------------------------------------------
Euro CDs no Yes n/a
---------------------------------------------------------------------------------------------------
Finland Yes Yes Yes
---------------------------------------------------------------------------------------------------
France Yes Yes Yes
---------------------------------------------------------------------------------------------------
Germany Yes Yes Yes
---------------------------------------------------------------------------------------------------
Ghana no Yes Voting Only
---------------------------------------------------------------------------------------------------
Market AutoCredit CSDA Active Proxy Voting
(Sales & Purchases)
---------------------------------------------------------------------------------------------------
Greece Yes Yes Yes
---------------------------------------------------------------------------------------------------
Hong Kong Yes Yes Yes
---------------------------------------------------------------------------------------------------
Hungary no Yes Yes
---------------------------------------------------------------------------------------------------
India no no Yes
---------------------------------------------------------------------------------------------------
Indonesia Yes** Yes Yes
---------------------------------------------------------------------------------------------------
Ireland Yes Yes Yes
---------------------------------------------------------------------------------------------------
Israel Yes Yes Yes
---------------------------------------------------------------------------------------------------
Italy Yes Yes Yes
---------------------------------------------------------------------------------------------------
12
---------------------------------------
GLOBAL INVESTOR SERVICES
---------------------------------------
Securities Depositories
As of January 17, 2001
---------------------------------------------------------------------------------------------------
Ivory Coast no no Voting Only
---------------------------------------------------------------------------------------------------
Japan Yes Yes Yes
---------------------------------------------------------------------------------------------------
Jordan no Yes* Yes
---------------------------------------------------------------------------------------------------
Kazakhstan no no Voting Only
---------------------------------------------------------------------------------------------------
Kenya no no Voting Only
---------------------------------------------------------------------------------------------------
Latvia no Yes Voting Only
---------------------------------------------------------------------------------------------------
Lebanon no Yes Yes
---------------------------------------------------------------------------------------------------
Lithuania no Yes Voting Only
---------------------------------------------------------------------------------------------------
Luxembourg Yes Yes Voting Only
---------------------------------------------------------------------------------------------------
Malaysia no no Yes
---------------------------------------------------------------------------------------------------
Mauritius no Yes Yes
---------------------------------------------------------------------------------------------------
Mexico Yes Yes Yes
---------------------------------------------------------------------------------------------------
Morocco no Yes Voting Only
---------------------------------------------------------------------------------------------------
Nambia no no Voting Only
---------------------------------------------------------------------------------------------------
Netherlands Yes Yes Yes
---------------------------------------------------------------------------------------------------
New Zealand Yes Yes Yes
---------------------------------------------------------------------------------------------------
Norway Yes Yes Yes
---------------------------------------------------------------------------------------------------
Oman no Yes Voting Only
---------------------------------------------------------------------------------------------------
Pakistan no no Yes
---------------------------------------------------------------------------------------------------
Peru no Yes Yes
---------------------------------------------------------------------------------------------------
Market AutoCredit CSDA Active Proxy Voting
(Sales & Purchases)
---------------------------------------------------------------------------------------------------
Philippines no Yes* Yes
---------------------------------------------------------------------------------------------------
Poland no Yes Yes
---------------------------------------------------------------------------------------------------
Portugal Yes Yes Yes
---------------------------------------------------------------------------------------------------
Romania no no Voting Only
---------------------------------------------------------------------------------------------------
Russia no no Yes
---------------------------------------------------------------------------------------------------
Shanghai (China) no Yes Yes
---------------------------------------------------------------------------------------------------
Shenzhen (China) no Yes Yes
---------------------------------------------------------------------------------------------------
Singapore Yes Yes Yes
---------------------------------------------------------------------------------------------------
Slovak Republic no Yes Yes
---------------------------------------------------------------------------------------------------
Slovenia no no Voting Only
---------------------------------------------------------------------------------------------------
South Africa Yes Yes Yes
---------------------------------------------------------------------------------------------------
South Korea no no Yes
---------------------------------------------------------------------------------------------------
Spain Yes Yes Yes
---------------------------------------------------------------------------------------------------
Sri Lanka no Yes Yes
---------------------------------------------------------------------------------------------------
Swaziland no no Voting Only
---------------------------------------------------------------------------------------------------
Sweden Yes Yes Yes
---------------------------------------------------------------------------------------------------
Switzerland Yes Yes Yes
---------------------------------------------------------------------------------------------------
Taiwan no Yes* Yes
---------------------------------------------------------------------------------------------------
Thailand Yes Yes Yes
---------------------------------------------------------------------------------------------------
Tunisia no Yes Yes
---------------------------------------------------------------------------------------------------
13
---------------------------------------
GLOBAL INVESTOR SERVICES
---------------------------------------
Securities Depositories
As of January 17, 2001
---------------------------------------------------------------------------------------------------
Turkey no Yes Voting Only
---------------------------------------------------------------------------------------------------
United Kingdom Yes Yes Yes
---------------------------------------------------------------------------------------------------
Uruguay no Yes Voting Only
---------------------------------------------------------------------------------------------------
United States of America Yes Yes Yes
---------------------------------------------------------------------------------------------------
Venezuela no no Yes
---------------------------------------------------------------------------------------------------
Zambia no no Voting Only
---------------------------------------------------------------------------------------------------
Zimbabwe no Yes Voting Only
---------------------------------------------------------------------------------------------------
* Local currency only ** Currently suspended
14
