SECTION 1. PURPOSE AND SCOPE

Sec. 1.01. General Obligations. QI is a withholding agent under chapter 3 of the Code and a payor under chapter 61 and section 3406 of the Code for amounts that it pays to its account holders. Except as otherwise provided in this Agreement, QI’s obligations with respect to amounts it pays to account holders are governed by chapter 3, chapter 61, and section 3406 of the Code and the regulations thereunder. QI shall act in its capacity as a qualified intermediary pursuant to this Agreement only for those accounts QI has with a withholding agent that QI has designated as accounts for which it acts as a qualified intermediary. QI is not required to act as a qualified intermediary for all accounts that it has with a withholding agent. However, if QI designates an account as one for which it will act as a qualified intermediary, it must act as a qualified intermediary for all payments made to that account.

Sec. 1.02. Parties to the Agreement. This Agreement applies to:

(a) All offices of QI located in the countries described in Appendix A of this Agreement; (b) All of the offices of the affiliated entities of QI that are signatories to this Agreement that are located in the countries described in Appendix A of this Agreement; and

(c) The Internal Revenue Service.

Appendix A may be amended, in writing, with the agreement of the IRS. Such amendments shall become part of this Agreement.

Sec. 1.03. Documentation Retention. QI agrees to obtain documentation from its account holders, and maintain and retain such documentation, as provided in section 5 of this Agreement.

Sec. 1.04. Qualified Intermediary Withholding Certificate. QI agrees to provide each withholding agent from which QI receives reportable amounts as a qualified intermediary with a qualified intermediary withholding certificate in accordance with section 6 of this Agreement. A qualified intermediary withholding certificate is a Form W-8IMY.

February 1, 1999 34 1999–5 I.R.B.

Sec. 1.05. Disclosure of Account Holders. Except as specifically required under section 6 of this Agreement, QI is not required to disclose the identities of its account holders to a withholding agent to whom it provides a Form W-8IMY. Therefore, the documentation given by an account holder to QI does not have to be attached to QI’s Form W-8IMY, except as specifically provided in section 6 of this Agreement.

Sec. 1.06. Classes of Assets. QI agrees to provide each withholding agent information regarding the classes of assets determined in accordance with section 7 of this Agreement.

Sec. 1.07. Withholding Obligations. QI agrees to withhold under sections 1441, 1442, 1443, 1461, and 3406 of the Code to the extent provided in sections 3 and 8 of this Agreement.

Sec. 1.08. Return Obligations. QI agrees to file Forms 945 and 1042 as provided in section 9 of this Agreement.

Sec. 1.09. Information Reporting Obligations. QI agrees to file Forms 1042-S, 1096, and 1099 as provided in section 10 of this Agreement.

Sec. 1.10. Adjustments for Over- and Under-Withholding and Refunds. QI agrees to follow the procedures for over- and underwithholding and for claiming refunds, as provided in section 11 of this Agreement.

Sec. 1.11. External Audit. QI agrees to the external audit procedures provided in section 12 of this Agreement.