Exhibit 4.2
XXXXXX XXXXXXX XXXX XXXXXX SELECT EQUITY TRUST
SELECT GLOBAL 30 PORTFOLIO 2000-2
REFERENCE TRUST AGREEMENT
This Reference Trust Agreement dated April 3, 2000 between XXXX XXXXXX
XXXXXXXX INC., as Depositor, and The Bank of New York, as Trustee, sets forth
certain provisions in full and incorporates other provisions by reference to the
document entitled "Xxxxxx Xxxxxxx Xxxx Xxxxxx Select Equity Trust, Trust
Indenture and Agreement" (the "Basic Agreement") dated September 30, 1993 as
amended on December 30, 1997. Such provisions as are incorporated by reference
constitute a single instrument (the "Indenture").
WITNESSETH THAT:
In consideration of the premises and of the mutual agreements herein
contained, the Depositor and the Trustee agree as follows:
I.
STANDARD TERMS AND CONDITIONS OF TRUST
Subject to the provisions of Part II hereof, all the provisions
contained in the Basic Agreement are herein incorporated by reference in their
entirety and shall be deemed to be a part of this instrument as fully and to the
same extent as though said provisions had been set forth in full in this
instrument except that the Basic Agreement is hereby amended as follows:
A. The first sentence of Section 2.01 is amended to add the following
language at the end of such sentence: "and/or cash (or a letter of credit
in lieu of cash) with instructions to the Trustee to purchase one or more
of such Securities which cash (or cash in an amount equal to the face
amount of the letter of credit), to the extent not used by the Trustee to
purchase such Securities within the 90-day period following the first
deposit of Securities in the Trust, shall be distributed to Unit Holders on
the Distribution Date next following such 90-day period or such earlier
date as the Depositor and the Trustee determine".
B. The first sentence of Section 2.06 is amended to add the following
language after "Securities"))": "and/or cash (or a letter of credit in lieu
of cash) with instructions to the Trustee to purchase one or more
Additional Securities which cash (or cash in an amount equal to the face
amount of the letter of credit), to the extent not used by the Trustee to
purchase such Additional Securities within the 90-day period following the
first deposit of Securities in the Trust, shall be distributed to Unit
Holders on the Distribution Date next following such 90-day period or such
earlier date as the Depositor and the Trustee determine".
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C. Article III, entitled "Administration of Trust", Section 3.01
Initial Cost shall be amended as follows:
Section 3.01 Initial Cost shall be amended to substitute the
following language:
Section 3.01. INITIAL COST The costs of organizing the Trust and
sale of the Trust Units shall, to the extent of the expenses
reimbursable to the Depositor provided below, be borne by the Unit
Holders, PROVIDED, HOWEVER, that, to the extent all of such costs are
not borne by Unit Holders, the amount of such costs not borne by Unit
Holders shall be borne by the Depositor and, PROVIDED FURTHER,
HOWEVER, that the liability on the part of the Depositor under this
section shall not include any fees or other expenses incurred in
connection with the administration of the Trust subsequent to the
deposit referred to in Section 2.01. Upon notification from the
Depositor that the primary offering period is concluded, the Trustee
shall withdraw from the Account or Accounts specified in the
Prospectus or, if no Account is therein specified, from the Principal
Account, and pay to the Depositor the Depositor's reimbursable
expenses of organizing the Trust and sale of the Trust Units in an
amount certified to the Trustee by the Depositor. If the balance of
the Principal Account is insufficient to make such withdrawal, the
Trustee shall, as directed by the Depositor, sell Securities
identified by the Depositor, or distribute to the Depositor Securities
having a value, as determined under Section 4.01 as of the date of
distribution, sufficient for such reimbursement. The reimbursement
provided for in this section shall be for the account of the
Unitholders of record at the conclusion of the primary offering period
and shall not be reflected in the computation of the Unit Value prior
thereto. As used herein, the Depositor's reimbursable expenses of
organizing the Trust and sale of the Trust Units shall include the
cost of the initial preparation and typesetting of the registration
statement, prospectuses (including preliminary prospectuses), the
indenture, and other documents relating to the Trust, SEC and state
blue sky registration fees, the cost of the initial valuation of the
portfolio and audit of the Trust, the initial fees and expenses of the
Trustee, and legal and other out-of-pocket expenses related thereto,
but not including the expenses incurred in the printing of preliminary
prospectuses and prospectuses, expenses incurred in the preparation
and printing of brochures and other advertising materials and any
other selling expenses. Any cash which the Depositor has identified as
to be used for reimbursement of expenses pursuant to this Section
shall be reserved by the Trustee for such purpose and shall not be
subject to distribution or, unless the Depositor otherwise directs,
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used for payment of redemptions in excess of the per-Unit amount
allocable to Units tendered for redemption.
D. The third paragraph of Section 3.05 is hereby amended to add the
following sentence after the first sentence thereof: "Depositor may direct the
Trustee to invest the proceeds of any sale of Securities not required for the
redemption of Units in eligible money market instruments selected by the
Depositor which will include only negotiable certificates of deposit or time
deposits of domestic banks which are members of the Federal Deposit Insurance
Corporation and which have, together with their branches or subsidiaries, more
than $2 billion in total assets, except that certificates of deposit or time
deposits of smaller domestic banks may be held provided the deposit does not
exceed the insurance coverage on the instrument (which currently is $100,000),
and provided further that the Trust's aggregate holding of certificates of
deposit or time deposits issued by the Trustee may not exceed the insurance
coverage of such obligations and U.S. Treasury notes or bills (which shall be
held until the maturity thereof) each of which matures prior to the earlier of
the next following Distribution Date or 90 days after receipt, the principal
thereof and interest thereon (to the extent such interest is not used to pay
Trust expenses) to be distributed on the earlier of the 90th day after receipt
or the next following Distribution Date."
E. The first sentence of each of Sections 3.10, 3.11 and 3.12 is amended to
insert the following language at the beginning of such sentence, "Except as
otherwise provided in Section 3.13,".
F. The following new Section 3.13 is added:
Section 3.13. EXTRAORDINARY EVENT - SECURITY RETENTION AND VOTING. In the
event the Trustee is notified of any action to be taken or proposed to be taken
by holders of the securities held by the Trust in connection with any proposed
merger, reorganization, spin-off, split-off or split-up by the issuer of stock
or securities held in the Trust, the Trustee shall take such action or refrain
from taking any action, as appropriate, so as to insure that the securities are
voted as closely as possible in the same manner and in the same general
proportion as are the securities held by owners other than the Trust. If stock
or securities are received by the Trustee, with or without cash, as a result of
any merger, reorganization, spin-off, split-off or split-up by the issuer of
stock or securities held in the Trust, the Trustee at the direction of the
Depositor may retain such stock or securities in the Trust. Neither the
Depositor nor the Trustee shall be liable to any person for any action or
failure to take action with respect to this section.
G. Section 1.01 is amended to add the following definition: (9) "Deferred
Sales Charge" shall mean any deferred sales charge payable in accordance with
the provisions of Section 3.14 hereof, as set forth in the prospectus for a
Trust. Definitions following this definition (9) shall be renumbered.
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H. Section 3.05 is hereby amended to add the following paragraph after the
end thereof: On each Deferred Sales Charge payment date set forth in the
prospectus for a Trust, the Trustee shall pay the account created pursuant to
Section 3.14 the amount of the Deferred Sales Charge payable on each such date
as stated in the prospectus for a Trust. Such amount shall be withdrawn from the
Principal Account from the amounts therein designated for such purpose.
I. Section 3.06B(3) shall be amended by adding the following: "and any
Deferred Sales Charge paid".
J. Section 3.08 shall be amended by adding the following at the end
thereof: "In order to pay the Deferred Sales Charge, the Trustee shall sell or
liquidate an amount of Securities at such time and from time to time and in such
manner as the Depositor shall direct such that the proceeds of such sale or
liquidation shall equal the amount required to be paid to the Depositor pursuant
to the Deferred Sales Charge program as set forth in the prospectus for a Trust.
K. Section 3.14 shall be added as follows:
Section 3.14. DEFERRED SALES CHARGE. If the prospectus for a Trust
specifies a Deferred Sales Charge, the Trustee shall, on the dates specified in
and as permitted by the prospectus, withdraw from the Income Account if such
account is designated in the prospectus as the source of the payments of the
Deferred Sales Charge, or to the extent funds are not available in that account
or if such account is not so designated, from the Principal Account, an amount
per Unit specified in the prospectus and credit such amount to a special,
non-Trust account maintained at the Trustee out of which the Deferred Sales
Charge will be distributed to the Depositor. If the Income Account is not
designated as the source of the Deferred Sales Charge payment or if the balances
in the Income and Principal Accounts are insufficient to make any such
withdrawal, the Trustee shall, as directed by the Depositor, either advance
funds, if so agreed to by the Trustee, in an amount equal to the proposed
withdrawal and be entitled to reimbursement of such advance upon the deposit of
additional monies in the Income Account or the Principal Account, sell
Securities and credit the proceeds thereof to such special Depositor's account
or credit Securities in kind to such special Depositor's Account. Such
directions shall identify the Securities, if any, to be sold or distributed in
kind and shall contain, if the Trustee is directed by the Depositor to sell a
Security, instructions as to execution of such sales. If a Unit Holder redeems
Units prior to full payment of the Deferred Sales Charge, the Trustee shall, if
so provided in the prospectus, on the Redemption Date, withhold from the
Redemption Price payment to such Unit Holder an amount equal to the unpaid
portion of the Deferred Sales Charge and distribute such amount to such special
Depositor's account or, if the Depositor shall purchase such Unit pursuant to
the terms of Section 5.02 hereof, the Depositor shall pay the Redemption Price
for such Unit less the unpaid portion of the Deferred Sales Charge. The
Depositor may at any time instruct the Trustee to dis-
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tribute to the Depositor cash or Securities previously credited to the special
Depositor's account.
L. The following new Section 3.15 is added:
Section 3.15. FOREIGN EXCHANGE TRANSACTIONS; RECLAIMING FOREIGN TAXES.
(a) For any Trust holding Securities denominated in a currency other than U.S.
dollars, the Depositor shall direct the Trustee with respect to the
circumstances under which foreign exchange transactions are to be entered into
and calculations under this Indenture are to be made, in order to convert
amounts receivable in respect of the Securities in foreign currencies into U.S.
dollars.
(b) The Trustee shall take such reasonable action as the Depositor shall
direct or, if not so directed, use reasonable efforts to reclaim or recoup any
amounts of non-U.S. tax paid by the Trust or withheld from income received by
the Trust to which the Trust may be entitled as a refund.
M. The following paragraphs are inserted after the first paragraph in
Section 4.01:
"With respect to foreign securities, each security listed on a securities
exchange will be valued at the last closing sale price on the relevant
stock exchange or if no such price exists at the closing offer price
thereof.
If the Trust holds securities denominated in a currency other than U.S.
dollars, the evaluations shall be converted to U.S. dollars based, during
the initial offering period, on the offering side of the relevant currency
exchange rate, and, subsequent to such period, on the bid side of the
relevant exchange rate, including the cost of a forward foreign exchange
contract in the relevant currency to correspond to the Trustee's settlement
requirement for redemption requests as quoted to the Trustee by one or more
banks designated by the Depositor, unless the Security is in the form of an
American depository share or receipt, in which case the evaluations shall
be based upon the U.S. dollar prices in the market for American depository
shares or receipts (unless the Trustee deems such prices inappropriate as a
basis for valuation)."
N. Reference to "Xxxx Xxxxxx Select Equity Trust" is replaced by "Xxxxxx
Xxxxxxx Xxxx Xxxxxx Select Equity Trust".
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II.
SPECIAL TERMS AND CONDITIONS OF TRUST
The following special terms and conditions are hereby agreed to:
A. The Trust is denominated Xxxxxx Xxxxxxx Xxxx Xxxxxx Select Equity
Trust Select Global 30 Portfolio 2000-2 (the "Select 30 Trust").
B. The publicly traded stocks listed in Schedule A hereto are those
which, subject to the terms of this Indenture, have been or are to be
deposited in trust under this Indenture.
C. The term, "Depositor" shall xxxx Xxxx Xxxxxx Xxxxxxxx Inc.
D. The aggregate number of Units referred to in Sections 2.03
and 9.01 of the Basic Agreement is 24,971 for the Select 30 Trust.
E. A Unit is hereby declared initially equal to 1/24,971.
F. The term "In-Kind Distribution Date" shall mean June 12, 2001.
G. The term "Record Dates" shall mean December 1, 2000, and July 2, 2001
and such other date as the Depositor may direct.
H. The term "Distribution Dates shall mean December 15, 2000 and July 9,
2001 and such other date as the Depositor may direct.
I. The term "Termination Date" shall mean July 2, 2001.
J. The Depositor's Annual Portfolio Supervision Fee shall be a
maximum of $0.25 per 100 Units.
K. The Trustee's Annual Fee as defined in Section 6.04 of the
Indenture shall be $0.80 per 100 Units.
L. For a Unit Holder to receive an "in-kind" distribution
during the life of the Trust, such Unit Holder must tender at least
25,000 Units for redemption. There is no minimum amount of Units that a
Unit Holder must tender in order to receive an "in-kind" distribution
on the In-Kind Date or in connection with a rollover.
(Signatures and acknowledgments on separate pages)
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The Schedule of Portfolio Securities in the prospectus included in
this Registration Statement is hereby incorporated by reference herein as
Schedule A hereto.
