EQUITY SECURITIES TRUST,
SERIES 20, MUNICIPAL SYMPHONY SERIES
REFERENCE TRUST AGREEMENT
This Reference Trust Agreement (the "Agreement") dated
November 12, 1998 between Xxxxx & Xxxx Distributors, Inc., as Depositor and The
Chase Manhattan Bank, as Trustee, sets forth certain provisions in full and
incorporates other provisions by reference to the document entitled "Equity
Securities Trust, Series 6, Signature Series, Gabelli Entertainment and Media
Trust, and Subsequent Series, Trust Indenture and Agreement" dated November 16,
1995 and as amended in part by this Agreement (collectively, such documents
hereinafter called the "Indenture and Agreement"). This Agreement and the
Indenture, as incorporated by reference herein, will constitute a single
instrument.
WITNESSETH THAT:
WHEREAS, this Agreement is a Reference Trust Agreement as
defined in Sec tion 1.1 of the Indenture, and shall be amended and modified from
time to time by an Addendum as defined in Section 1.1 (1) of the Indenture, such
Addendum setting forth any Additional Securities as defined in Section 1.1 (2)
of the Indenture;
WHEREAS, the Depositor wishes to deposit Securities, and any
Additional Securities as listed on any Addendums hereto, into the Trust and
issue Units, and Additional Units as the case maybe, in respect thereof pursuant
to Sections 2.1 and 2.6 of the Indenture; and
NOW THEREFORE, in consideration of the premises and of the
mutual agreements herein contained, the Depositor and the Trustee agree as
follows:
Part I
STANDARD TERMS AND CONDITIONS OF TRUST
Section 1. Subject to the provisions of Part II hereof, all
the provisions contained in the Indenture 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 following sections of the Indenture hereby are
amended as follows:
(a) All references to "The Chase Manhattan Bank (National
Association)" are replaced with "The Chase Manhattan Bank".
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(b) Notwithstanding any provision of the Indenture to the
contrary, ownership of Units of this series of Equity Securities Trust shall not
be certificated and shall be evidenced solely by registration on the transfer
books of the Trustee, and the registered holder of uncertificated Units shall
have all of the rights and obligations (excluding the right to the issuance of a
Certificate) specified for a registered Certificateholder under the Indenture.
The Depositor and the Trustee shall cause all Units of the Trust issued to the
Depositor (upon both the initial deposit and any deposits of Additional
Securities pursuant to Section 2.6) to be deposited at The Depository Trust
Company ("DTC") and to be credited there to the account of the Depositor. On and
after such deposit, for all purposes under the Indenture and Agreement, the sole
registered holder of Units of the Trust shall be DTC, or its nominee, unless and
until DTC has notified the Trustee and the Depositor that it is no longer
willing to act as depository with respect to the Units. Accordingly, so long as
DTC, or its nominee, is the registered owner of the Trust Units, beneficial
ownership of Units may only be maintained by or through a participant in DTC and
shall be subject to the rules and operating procedures of DTC as in effect from
time to time. The Trustee shall not be liable for any loss or liability
resulting from the actions of DTC as registered holder and depository of the
Units.
(c) Sections 1.2 and 2.4 and any reference herein to the
issuance of Certificates shall be deleted.
(d) Section 2.3 shall be amended by adding after the words
"has registered on the registration books of the Trust the ownership by" the
words "the Depositor of such Units or, if requested by the Depositor, the
ownership by."
(e) Paragraph (a) of Section 2.6 shall be amended to read in
its entirety as follows:
"Section 2.6 Deposit of Additional Securities. (a)
Subject to the requirements set forth below in this
Section, the Depositor may, on any Business Day (the
"Trade Date"), subscribe for Additional Units as
follows:
(1) Prior to the Evaluation Time on the Trade Date,
the Depositor shall provide notice (the "Subscription
Notice") to the Trustee, by telecopy or by written
communication, of the Depositor's intention to
subscribe for Additional Units. The Subscription
Notice shall identify the Additional Securities to be
acquired (unless such Additional Securities are a
precise replication of the then existing portfolio)
and shall either (i) specify the quantity of
Additional Securities to be deposited by the
Depositor on the settlement date for such
subscription or (ii) instruct the Trustee to purchase
Additional Securities with an aggregate value as
specified in the Subscription Notice.
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(2) Promptly following the Evaluation Time on such
Business Day, the Depositor shall verify with the
Trustee, by telecopy, the number of Additional Units
to be created.
(3) Not later than the time on the settlement date
for such subscription when the Trustee is to deliver
the Additional Units created thereby (which time
shall not be later than the time by which the Trustee
is required to settle any contracts for the purchase
of Additional Securities entered into by the Trustee
pursuant to the instruction of the Depositor referred
to in subparagraph (1) above), the Depositor shall
deposit with the Trustee (i) any Additional
Securities specified in the Subscription Notice (or
contracts to purchase such Additional Securities
together with cash or a letter of credit in the
amount necessary to settle such contracts) or (ii)
cash or a letter of credit in the amount equal to the
aggregate value of the Additional Securities
specified in the Subscription Notice, together with,
in each case, Cash as defined below. "Cash" means, as
to the Principal Account, cash or other property
(other than Securities) on hand in the Principal
Account or receivable and to be credited to the
Principal Account as of the Evaluation Time on the
Business Day preceding the Trade Date (other than
amounts to be distributed solely to persons other
than persons receiving the distribution from the
Principal Account as holders of Additional Units
created by the deposit), and, as to the Income
Account, cash or other property (other than
Securities) received by the Trust as of the
Evaluation Time on the Business Day preceding the
Trade Date or receivable by the Trust in respect of
dividends or other distributions declared but not
received as of the Evaluation Time on the Business
Day preceding the Trade Date, reduced by the amount
of any cash or other property received or receivable
on any Security allocable (in accordance with the
Trustee's calculation of the monthly distribution
from the Income Account pursuant to Section 3.5) to a
distribution made or to be made in respect of a
Record Date occurring prior to the Trade Date. Each
deposit made during the 90 days following the deposit
made pursuant to Section 2.1 hereof shall replicate,
to the extent practicable, as specified in
subparagraph (b), the Original Proportionate
Relationship. Each deposit made after the 90 days
following the deposit made pursuant to Section 2.1
hereof (except for deposits made to replace Failed
Securities if such deposits occur within 20 days from
the date of a failure occurring within such initial
90 day period) shall maintain exactly the
proportionate relationship existing among the
Securities as of the expiration of such 90 day
period. Each such deposit shall exactly replicate
Cash.
(4) On the settlement date for a subscription, the
Trustee shall, in exchange for the Securities and
cash or letter of credit described above, issue and
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deliver to or on the order of the Depositor the
number of Units verified by the Depositor with the
Trustee. No Unit to be issued pursuant to this
paragraph shall be issued or delivered unless and
until Securities, cash or a letter of credit is
received in exchange therefor and no person shall
have any claim to any Unit not so issued and
delivered or any interest in the Trust in respect
thereof.
(5) Each deposit of Additional Securities, shall be
listed in a Supplementary Schedule to an Addendum to
the Reference Trust Agreement stating the date of
such deposit and the number of Additional Units being
issued therefor. The Trustee shall acknowledge in
such Addendum the receipt of the Deposit and the
number of Additional Units issued in respect thereof.
The Additional Securities shall be held, administered
and applied by the Trustee in the same manner as
herein provided for the Securities.
(6) The acceptance of Additional Units by the
Depositor in accordance with the provisions of
paragraph (a) of this Section shall be deemed a
certification by the Depositor that the deposit or
purchase of Additional Securities associated
therewith complies with the conditions of this
Section 2.06.
(7) Notwithstanding the preceding, in the event that
the Sponsor's Subscription Notice shall instruct the
Trustee to purchase Additional Securities in an
amount which, when added to the purchase amount of
all other unsettled contracts entered into by the
Trustee, exceeds 25% of the value of the Securities
then held (taking into account the value of contracts
to purchase Securities only to the extent that there
has been deposited with the Trustee cash or an
irrevocable letter of credit in an amount sufficient
to settle their purchase), the Sponsor shall deposit
with the Trustee concurrently with the Subscription
Notice such that, when added to 25% of the value of
the Securities then held (determined as above) the
aggregate value shall be not less than the purchase
amount of the securities to be purchased pursuant to
such Subscription Notice."
(f) Section 3.1 is hereby amended in its entirety to read as
follows:
"Section 3.1. Initial Cost: The cost of the initial
preparation, printing and execution of the Certificates and
this Indenture, the initial fees of the Trustee and its
counsel, and the initial fees of the Evaluator and other
reasonable expenses in connection therewith, shall be paid by
the Depositor, provided, however, that the liability on the
part of the Depositor for such initial costs, fees and
expenses shall not include any fees, costs or other expenses
incurred in connection herewith after the execution of this
Indenture and the deposit referred to in Section 2.01.
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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 4.1 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 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 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, used for payment of
redemptions in excess of the per-Unit amount allocable to
Units tendered for redemption."
(g) Section 3.5 is hereby amended by inserting the phrase "or
Income" in the second sentence of the sixth paragraph after the words "The
Trustee shall not be required to make a distribution from the Principal..."
(h) Section 3.11 is hereby amended so that the first sentence
of such section reads as follows:
" In the event that an offer by the issuer of any of
the Securities or any other party shall be made to
issue new Securities, the Trustee shall reject such
offer, except that if (1) the issuer failed to
declare or pay anticipated dividends with respect to
such Securities or (2) in the opinion of the Sponsor,
given in writing to the Trustee, the issuer will
probably fail to declare or pay anticipated dividends
with respect to such Securities in the reasonably
forseeable future, the Sponsor shall instruct the
Trustee in writing to accept or reject such offer and
to take any other action with respect thereto as the
Sponsor may deem proper."
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(i) Section 3.14 is hereby amended by inserting the phrase
"including, but not limited to securities received as a result of a spin-off" in
the first sentence after the words "Any property received by the Trustee after
the initial date of Deposit in a form other than cash or additional shares of
the Securities listed on Schedule A..."
(j) Section 5.1 of the Agreement is amended by deleting clause
(a)(4) in the first paragraph and deleting clause (i) from the first sentence of
the second paragraph and renumbering the remaining clauses accordingly.
(k) Section 9.2 is hereby amended by replacing the phrase "60
business days" with "7 days" in the first sentence of the sixth paragraph.
(l) Section 9.2 of the Agreement is further amended by adding
the following paragraph after the sixth paragraph of such Section 9.2:
"In the event that the Depositor directs the Trustee
that certain Securities will be sold to a new series of the
Trust (a "New Series"), the Depositor will certify to the
Trustee, within five days of each sale from a Trust to a New
Series, (1) that the transaction is consistent with the policy
of both the Trust and the New Series, as recited in their
respective registration statements and reports filed under the
Act, (2) the date of such transaction and (3) the closing
sales price on the national securities exchange for the sale
date of the securities subject to such sale. The Trustee will
then countersign the certificate, unless the Trustee disagrees
with the closing sales price listed on the certificate,
whereupon the Trustee will promptly inform the Depositor
orally of any such disagreement and return the certificate
within five days to the Depositor with corrections duly noted.
Upon the Depositor's receipt of a corrected certificate, if
the Depositor can verify the corrected price by reference to
an independently published list of closing sales prices for
the date of the transactions, the Depositor will ensure that
the price of Units of the New Series, and distributions to
holders of the Trust with regard to redemption of their Units
or termination of the Trust, accurately reflect the corrected
price. To the extent that the Depositor disagree with the
Trustee's corrected price, the Depositor and the Trustee will
jointly determine the correct sales price by reference to a
mutually agreeable, independently published list of closing
sales prices for the date of the transaction. The Depositor
and Trustee will periodically review the procedures for sales
and make such changes as they deem necessary, consistent with
Rule 17a-7(e)(2). Finally, records of the procedures and of
each transaction will be maintained as provided in Rule
17a-7(f)."
(m) All references to "Xxxxx & Xxxx Distributors L.P." are
replaced with "Xxxxx & Tang Distributors, Inc."
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Section 2. This Reference Trust Agreement may be amended and
modified by Addendums, attached hereto, evidencing the purchase of Additional
Securities which have been deposited to effect an increase over the number of
Units initially specified in Part II of this Reference Trust Agreement
("Additional Closings"). The Depositor and Trustee hereby agree that their
respective representations, agreements and certifications contained in the
Closing Memorandum dated November 12, 1998, relating to the initial deposit of
Securities continue as if such representations, agreements and certifications
were made on the date of such Additional Closings and with respect to the
deposits made therewith, except as such representations, agreements and
certifications relate to their respective By-Laws and as to which they each
represent that their has been no amendment affecting their respective abilities
to perform their respective obligations under the Indenture.
Part II
SPECIAL TERMS AND CONDITIONS OF TRUST
Section 1. The following special terms and conditions are
hereby agreed to:
(a) The Securities (including Contract Securities) listed in
the Prospectus relating to this series of Equity Securities Trust (the
"Prospectus") have been deposited in the Trust under this Agreement (see
"Portfolio" in Part A of the Prospectus which for purposes of this Indenture and
Agreement is the Schedule of Securities or Schedule A).
(b) The number of Units delivered by the Trustee in exchange
for the Securities referred to in Section 2.3 is 15,676.
(c) For the purposes of the definition of Unit in item (22) of
Section 1.1, the fractional undivided interest in and ownership of the Trust
initially is 1/15676 as of the date hereof.
(d) The term Record Date shall mean the fifteenth day of each
month commencing on December 15, 1998 .
(e) The term Distribution Date shall mean the last business
day of each month commencing on December 31, 1998.
(f) The First Settlement Date shall mean November 17, 1998.
(g) For purposes of Section 6.1(g), the liquidation amount is
hereby specified to be 40% of the aggregate value of the Securities at the
completion of the Deposit Period.
(h) For purposes of Section 6.4, the Trustee shall be paid per
annum an amount computed according to the following schedule, determined on the
basis of the number of Units
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outstanding as of the Record Date preceding the Record Date on which the
compensation is to be paid, provided, however, that with respect to the period
prior to the first Record Date, the Trustee's compensation shall be computed at
$.86 per 100 Units:
rate per 100 units number of Units outstanding
$0.86 5,000,000 or less
$0.80 5,000,001 - 10,000,000
$0.74 10,000,001 - 20,000,000
$0.62 20,000,001 or more
(i) For purposes of Section 7.4, the Depositor's maximum
annual supervisory fee is hereby specified to be $.30 per 100 Units outstanding.
(j) The Termination Date shall be November 12, 2005 or the
earlier disposition of the last Security in the Trust.
(k) The fiscal year for the Trust shall end on June 30 of each
year.
IN WITNESS WHEREOF, the parties hereto have caused this
Reference Trust Agreement to be duly executed on the date first above written.
[Signatures on separate pages]
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XXXXX & XXXX DISTRIBUTORS, INC.
Depositor
By: /s/Xxxxx XxXxxxx
---------------------------------
Executive Vice President
STATE OF NEW YORK )
: ss:
COUNTY OF NEW YORK )
On this 9th day of November, 1998, before me personally
appeared Xxxxx X. XxXxxxx, to me known, who being by me duly sworn, said that he
is Executive Vice President of the Depositor, one of the corporations described
in and which executed the foregoing instrument, and that he signed his name
thereto by authority of the Board of Directors of said corporation.
/s/Xxxxxx Xxxxxxxx
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Notary Public
THE CHASE MANHATTAN BANK
Trustee
By:/s/Xxxxxxx X. Xxxxxxx
--------------------------------
Vice President
(SEAL)
STATE OF NEW YORK )
:ss.:
COUNTY OF NEW YORK )
On this 11th day of November, 1998, before me personally
appeared Xxxxxxx X. Xxxxxxx, to me known, who being by me duly sworn, said that
(s)he is an Authorized Signator of The Chase Manhattan Bank, one of the
corporations described in and which executed the foregoing instrument; that
(s)he knows the seal of said corporation; that the seal affixed to said
instrument is such corporate seal; that it was so affixed by authority of the
Board of Directors of said corporation and that (s)he signed his/her name
thereto by like authority.
/s/Ada Xxxx Xxxx
-----------------------------------
Notary Public
