<PAGE>
File No. 811-9170
File No. 333-31247
As filed with the Securities and Exchange Commission
on January 16, 1998
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
POST-EFFECTIVE AMENDMENT NO. 1
TO
FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933 OF
SECURITIES OF UNIT INVESTMENT TRUSTS REGISTERED
ON FORM N-8B-2
A. Exact name of Trust:
DIAMONDS TRUST, SERIES 1
B. Name of Depositor:
PDR SERVICES CORPORATION
C. Complete address of Depositor's principal executive office:
PDR SERVICES CORPORATION
c/o AMERICAN STOCK EXCHANGE, INC.
86 Trinity Place
New York, New York 10006
D. Name and complete address of agent for service:
James F. Duffy
PDR SERVICES CORPORATION
c/o AMERICAN STOCK EXCHANGE, INC.
86 Trinity Place
<PAGE>
New York, New York 10006
Copy to:
Kathleen H. Moriarty
CARTER, LEDYARD & MILBURN
2 Wall Street
New York, New York 10005
E. Title and amount of securities being registered:
An indefinite number of units of Beneficial Interest pursuant to Rule
24f-2 under the Investment Company Act of 1940.
F. Proposed maximum aggregate offering price to the public of the
securities being registered:
Indefinite pursuant to Rule 24f-2
G. Amount of filing fee:
None required pursuant to Rule 24f-2.
H. Approximate date of proposed sale to public:
AS SOON AS PRACTICABLE AFTER THE EFFECTIVE DATE OF THE REGISTRATION
STATEMENT.
// Check box if it is proposed that this filing will become
effective on (date) at (time) pursuant to Rule 487.
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<PAGE>
DIAMONDS TRUST, SERIES 1
Cross Reference Sheet
Pursuant to Regulation C
Under the Securities Act of 1933, as amended
(Form N-8B-2 Items required by Instruction 1
as to Prospectus in Form S-6)
Form N-8B-2 Form S-6
Item Number Heading in Prospectus
- ----------- ---------------------
I. Organization and General Information
------------------------------------
1. (a) Name of Trust.................... Prospectus Front Cover
(b) Title of securities issued....... Prospectus Front Cover
2. Name, address and Internal
Revenue Service Employer
Identification Number of
depositor............................ Sponsor
3. Name, address and Internal
Revenue Service Employer
Identification Number of
trustee.............................. Trustee
4. Name, address and Internal
Revenue Service Employer
Identification Number
of principal underwriter............. *
5. State of organization of Trust....... Prospectus Summary - The Trust
6. (a) Dates of execution and
termination of Trust
Agreement............................ Prospectus Summary - The Trust;
Prospectus Summary - Termination
(b) Dates of execution and
termination of Trust
Agreement............................ Same as set forth in 6(a)
7. Changes of name...................... *
8. Fiscal Year.......................... *
9. Material Litigation.................. *
- ---------------
*Not applicable, answer negative or not required.
-i-
<PAGE>
II. General Description of the Trust
and Securities of the Trust
-------------------------------------
10. (a) Registered or bearer
securities....................... Prospectus Summary - The Trust
(b) Cumulative or distributive....... Prospectus Summary - Distributions
(c) Rights of holders as to
withdrawal or redemption......... Prospectus Summary - Redemption;
Redemption of DIAMONDS;
Administration of the Trust -
Rights of
Beneficial Owners
(d) Rights of holders as to
conversion, transfer, etc........ Prospectus Summary - Redemption;
Administration of the Trust -
Register of Ownership and
Transfer; - Rights of Beneficial
Owners; Redemption
(e) Lapses or defaults in
principal payments with
respect to periodic payment
plan certificates................ *
(f) Voting rights.................... Administration of the Trust - Voting
(g) Notice to holders as to
change in:
(1) Composition of Trust
assets...................... *
(2) Terms and conditions
of Trust's securities....... Administration of the Trust -
Amendment
(3) Provisions of Trust
Agreement................... Same as set forth in 10(g)(2)
(4) Identity of depositor
and trustee................. Resignation, Removal and Liability -
The Trustee; - The Sponsor
- -----------------------
*Not applicable, answer negative or not required.
-ii-
<PAGE>
(h) Consent of holders
required to change:
(1) Composition of Trust
assets...................... *
(2) Terms and conditions
of Trust's securities....... Administration of the Trust -
Amendment
(3) Provisions of Trust
Agreement................... Same as set forth in 10(h)(2)
(4) Identity of depositor
and trustee................. Resignation, Removal and Liability -
The Sponsor; - The Trustee
(i) Other principal
features of the securities.. Prospectus Summary - The Trust
11. Type of securities
comprising units..................... The Prospectus - Front Cover;
Prospectus Summary - The
Trust; The Portfolio; The DJIA;
12. Certain information regarding
securities comprising periodic
payment certificates................. *
13. (a) Certain information regarding
loads, fees, expenses
and charges...................... Prospectus Summary - Redemption;
Expenses of the Trust;
Redemption of DIAMONDS;
(b) Certain information regarding
periodic payment plan
certificates..................... *
(c) Certain percentages.............. Same as set forth in 13(a)
(d) Reasons for certain
differences in prices............ *
(e) Certain other loads, fees, or
charges payable by holders....... *
- ---------------------
*Not applicable, answer negative or not required.
-iii-
<PAGE>
(f) Certain profits receivable
by depositor, principal
underwriters, custodian,
trustee or affiliated
persons.......................... The Portfolio - Adjustments to the
Portfolio
(g) Ratio of annual charges and
deductions to income............. *
14. Issuance of Trust's securities....... The Trust - Creation of Creation
Units
15. Receipt and handling of
payments from purchasers............. The Trust
16. Acquisition and disposition of
underlying securities................ The Trust - Creation of Creation
Units; The Portfolio; Administration
of the Trust
17. (a) Withdrawal or redemption by
holders.......................... Administration of the Trust - Rights
of Beneficial Owners; Redemption
of DIAMONDS
(b) Persons entitled or required
to redeem or repurchase
securities....................... Same as set forth in 17(a)
(c) Cancellation or resale of
repurchased or redeemed
securities....................... Same as set forth in 17(a)
18. (a) Receipt, custody and
disposition of
income........................... Administration of the Trust-
Distributions to Beneficial Owners
(b) Reinvestment of distributions.... *
(c) Reserves or special funds........ Same as set forth in 18(a)
(d) Schedule of distributions........ *
- ---------------------
*Not applicable, answer negative or not required.
-iv-
<PAGE>
19. Records, accounts and reports........ The DJIA; Distribution of DIAMONDS;
Expenses; Administration of the
Trust- Records; - Distributions to
Beneficial Owners; - Statements to
Beneficial Owners; - Register of
Ownership and Transfer
20. Certain miscellaneous provi-
sions of Trust Agreement
(a) Amendments....................... Administration of the Trust -
Amendment
(b) Extension or termination......... Administration of the Trust -
Amendment; - Termination
(c) Removal or resignation of
trustee.......................... Resignation, Removal and Liability-
The Trustee
(d) Successor trustee................ Same as set forth in 20(c)
(e) Removal or resignation of
depositor........................ Resignation, Removal and Liability-
The Sponsor
(f) Successor depositor.............. Same as set forth in 20(e)
21. Loans to security holders............. *
22. Limitations on liabilities........... Resignation, Removal and Liability -
The Trustee; - The Sponsor
23. Bonding arrangements................. *
24. Other material provisions of
Trust Agreement...................... *
III. Organization, Personnel and
Affiliated Persons of Depositor
-------------------------------
25. Organization of depositor............ Sponsor
26. Fees received by depositor........... *
- ---------------------
*Not applicable, answer negative or not required.
-v-
<PAGE>
27. Business of depositor................ Sponsor
28. Certain information as to
officials and affiliated
persons of depositor................. Sponsor
29. Ownership of voting securities
of depositor......................... Sponsor
30. Persons controlling depositor........ *
31. Payments by depositor for
certain services rendered
to Trust............................. *
32. Payments by depositor for
certain other services
rendered to Trust.................... *
33. Remuneration of employees of
depositor for certain
services rendered to Trust........... *
34. Compensation of other persons
for certain services rendered
to Trust............................. *
IV. Distribution and Redemption of Securities
-----------------------------------------
35. Distribution of Trust's
securities in states................. Distribution of DIAMONDS;
36. Suspension of sales of Trust's
securities........................... *
37. Denial or revocation of
authority to distribute.............. *
38. (a) Method of distribution........... Prospectus Summary - Underwriting;
The Trust - Creation of Creation
Units; Distribution of DIAMONDS
(b) Underwriting agreements.......... Prospectus Summary - Underwriting;
Distribution of DIAMONDS
(c) Selling agreements............... Same as set forth in 38(b)
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*Not applicable, answer negative or not required.
-vi-
<PAGE>
39. (a) Organization of principal
underwriter...................... Underwriter
(b) NASD membership of
principal underwriter............ Prospectus Summary - Underwriting;
Underwriter
40. Certain fees received by
principal underwriters............... *
41. (a) Business of principal
underwriters..................... Prospectus Summary - Underwriting;
Underwriter
(b) Branch offices of
principal underwriters............... *
(c) Salesmen of principal
underwriters......................... *
42. Ownership of Trust's securities
by certain persons................... *
43. Certain brokerage commissions
received by principal
underwriters......................... *
44. (a) Method of valuation for
determining offering price........... The Portfolio; Valuation
(b) Schedule as to components of
offering price....................... *
(c) Variation in offering
price to certain persons......... *
45. Suspension of redemption
rights............................... *
46. (a) Certain information
regarding redemption or
withdrawal valuation............. Valuation; Redemption of DIAMONDS
(b) Schedule as to components
of redemption price.............. *
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*Not applicable, answer negative or not required.
-vii-
<PAGE>
47. Maintenance of position in
underlying securities................ The Trust; The Portfolio;
Distribution of DIAMONDS; Valuation;
Administration of the Trust -
Distribution to Beneficial Owners
V. Information Concerning the Trustee or Custodian
-----------------------------------------------
48. Organization and regulation of
trustee.............................. Trustee
49. Fees and expenses of trustee......... Expenses of the Trust; Redemptions of
DIAMONDS
50. Trustee's lien....................... Expenses of the Trust; Redemption of
DIAMONDS
VI. Information Concerning Insurance of Holders of Securities
---------------------------------------------------------
51. (a) Name and address of
insurance company............. *
(b) Types of policies............. *
(c) Types of risks insured and
excluded...................... *
(d) Coverage...................... *
(e) Beneficiaries................. *
(f) Terms and manner of
cancellation.................. *
(g) Method of determining
premiums...................... *
(h) Aggregate premiums paid....... *
(i) Recipients of premiums........ *
(j) Other material provisions
of Trust Agreement relating
to insurance..................... *
- ---------------------
*Not applicable, answer negative or not required.
-viii-
<PAGE>
VII. Policy of Registrant
--------------------
52. (a) Method of selecting and
eliminating securities from
the Trust........................ The Trust - Creation of Creation
Units; The Portfolio; Administration
of the Trust
(b) Elimination of securities....
from the Trust................... *
(c) Policy of Trust regarding
substitution and elimina-
tion of securities............... Same as set forth in 52(a)
(d) Description of any other
fundamental policy of the
Trust............................ *
53. (a) Taxable status of the Trust...... Tax Status of the Trust
(b) Qualification of the Trust
as a regulated investment
company.......................... Same as set forth in 53(b)
VIII. Financial and Statistical Information
-------------------------------------
54. Information regarding the
Trust's last ten fiscal years........ *
55. Certain information regarding
periodic payment plan certifi-
cates................................ *
56. Certain information regarding
periodic payment plan certifi-
cates................................ *
57. Certain information regarding
periodic payment plan certifi-
cates................................ *
- ---------------------
*Not applicable, answer negative or not required.
-ix-
<PAGE>
58. Certain information regarding
periodic payment plan certifi-
cates................................ *
59. Financial statements
(Instruction 1(c) to Form S-6)...... *
- ---------------------
*Not applicable, answer negative or not required.
-x-
<PAGE>
Undertaking to File Reports
---------------------------
Subject to the terms and conditions of Section 15(d) of the Securities
Exchange Act of 1934, the undersigned registrant hereby undertakes to file
with the Securities and Exchange Commission such supplementary and periodic
information, documents, and reports as may be prescribed by any rule or
regulations of the Commission heretofore or hereafter duly adopted pursuant
to authority conferred in that section.
<PAGE>
CONTENTS OF REGISTRATION STATEMENT
This amendment to the Registration Statement on Form S-6 comprises the following
papers and documents:
The facing sheet.
The cross-reference sheet.
The undertaking to file reports.
The signatures.
The following exhibits:
EXHIBIT NO. TITLE OF DOCUMENT
- ----------- -----------------
1. Ex.-99.A9- Dow Jones License Agreement dated June 5, 1997 among Dow
Jones and Company, Inc., the Sponsor and the Trustee, filed on January
14, 1998 with the Secretary of the Securities and Exchange Commission
pursuant to a request for confidentiality.
2. Ex.-27 - Financial Data Schedule.*
3. Ex.-99.A1 - Standard Terms and Conditions of Trust effective January 13,
1998 between PDR Services Corporation, as Sponsor, and State Street Bank
and Trust Company, as Trustee, incorporated by reference to Exhibit No.
A(1) to Amendment No. 1 to Form N-8b-2 for File No. 811-9170, including
the Form of Certificate of Ownership as Exhibit B thereto.*
4. Ex.-99.A2 - Trust Indenture and Agreement dated January 13, 1998 between
PDR Services Corporation, as Sponsor, and State Street Bank and Trust
Company, as Trustee.*
5. Ex.-99.A9- Depository Agreement dated January 12, 1998 between the
Depository and the Trustee, incorporated by reference to Exhibit No.
A(9) for Amendment No. 1 to Form N-8b-2 for File No. 811-9170.*
6. Ex.-99.A9- Form of Participant Agreement to be entered into among the
Trustee, the Distributor and various Broker-Dealers, as Participants,
incorporated by reference to Exhibit No. A(9)(b) for Amendment No. 1 to
Form N-8b-2 for File No.811-9170.*
7. Ex.-99.2 - Opinion of Counsel as to legality of securities being
registered.*
8. Ex.-99.C1 - Opinion of Counsel as to certain tax aspects of the Trust.*
9. Ex.-99.C2 - Consent of Independent Accountants.*
10. Ex.-A6 - Certificate of Incorporation and By-Laws of PDR Services
Corporation, Sponsor, incorporated by reference to Exhibit A(6) to
Amendment No. 1 to Form S-6 for the MidCap SPDR Trust, Series 1 filed
with the Securities and Exchange Commission on April 27, 1995 (File No.
33-89088).*
* This document was previously filed with the Securities and Exchange Commission
in connection with this Registration on January 14, 1998 (See File No.
333-31247).
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
registrant, DIAMONDS Trust, Series 1, has duly caused this amendment to the
Registration Statement to be signed on its behalf by the undersigned thereunto
duly authorized, all in the City of New York, and State of New York, on the 16th
____
day of January, 1998.
_____________
DIAMONDS TRUST, SERIES 1
(Registrant)
By: PDR Services Corporation
(Depositor)
-----------------------------
Joseph Stefanelli
President
Pursuant to the requirements of the Securities Act of 1933, this
amendment to the Registration Statement has been signed on behalf of PDR
Services Corporation the Depositor by the following persons who constitute a
majority of its Board of Directors and by the named persons who are in the
following capacities, in the City of New York and State of New York, on the date
above indicated.
PDR SERVICES CORPORATION
Name Title/Office
- ---- ------------
Joseph Stefanelli President and Director*
Paul Shackford Treasurer and Director*
Gary Gastineau Vice President and Director*
By
------------------------------
Joseph Stefanelli
Attorney-in-fact*
- -------------------------
* Executed copies of the powers of attorney were previously filed with
the Securities and Exchange Commission in connection with Registration
Statement on July 14, 1997 as Exhibit No. 1.
<PAGE>
FINANCIAL STATEMENTS
--------------------
1. Statement of Financial Condition of the Trust as shown in the current
Prospectus for this series herewith.
2. Financial Statements of the Depositor:
PDR Services Corporation - Financial Statements, as part of American
Stock Exchange, Inc. current consolidated financial statements
incorporated by reference to Form 1-A, amendment No. 312 filed on June
27, 1997.
<PAGE>
============================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-------------
FORM S-6
REGISTRATION STATEMENT
Under
THE SECURITIES ACT OF 1933
-------------
PDR SERVICES CORPORATION
-------------
EXHIBITS
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<PAGE>
EXHIBIT INDEX
EXHIBIT NO. TITLE OF DOCUMENT
- ----------- -----------------
1. Ex.-99.A9- Dow Jones License Agreement dated June 5, 1997 among Dow
Jones and Company, Inc., the Sponsor and the Trustee, filed on January
14, 1998 with the Secretary of the Securities and Exchange Commission
pursuant to a request for confidentiality.
2. Ex.-27 - Financial Data Schedule.*
3. Ex.-99.A1 - Standard Terms and Conditions of Trust effective January 13,
1998 between PDR Services Corporation, as Sponsor, and State Street Bank
and Trust Company, as Trustee, incorporated by reference to Exhibit No.
A(1) to Amendment No. 1 to Form N-8b-2 for File No. 811-9170, including
the Form of Certificate of Ownership as Exhibit B thereto.*
4. Ex.-99.A2 - Trust Indenture and Agreement dated January 13, 1998 between
PDR Services Corporation, as Sponsor, and State Street Bank and Trust
Company, as Trustee.*
5. Ex.-99.A9- Depository Agreement dated January 12, 1998 between the
Depository and the Trustee, incorporated by reference to Exhibit No.
A(9) for Amendment No. 1 to Form N-8b-2 for File No. 811-9170.*
6. Ex.-99.A9- Form of Participant Agreement to be entered into among the
Trustee, the Distributor and various Broker-Dealers, as Participants,
incorporated by reference to Exhibit No. A(9)(b) for Amendment No. 1 to
Form N-8b-2 for File No.811-9170.*
7. Ex.-99.2 - Opinion of Counsel as to legality of securities being
registered.*
8. Ex.-99.C1 - Opinion of Counsel as to certain tax aspects of the Trust.*
9. Ex.-99.C2 - Consent of Independent Accountants.*
10. Ex.-A6 - Certificate of Incorporation and By-Laws of PDR Services
Corporation, Sponsor, incorporated by reference to Exhibit A(6) to
Amendment No. 1 to Form S-6 for the MidCap SPDR Trust, Series 1 filed
with the Securities and Exchange Commission on April 27, 1995 (File No.
33-89088).*
* This document was previously filed with the Securities and Exchange Commission
in connection with this Registration on January 14, 1998 (See File No.
333-31247).
<PAGE>
CONFIDENTIAL
------------
[!!!] - Symbol Indicates portion of text filed with the Secretary of the
Securities and Exchange Commission pursuant to a request for confidentiality.
LICENSE AGREEMENT
This License Agreement, dated as of June 5, 1997, is made by and between
Dow Jones & Company, Inc. ("Dow Jones"), having an office at 200 Liberty Street,
---------------
New York, New York 10281, the American Stock Exchange, Inc. ("AMEX"), having an
----------
office at 86 Trinity Place, New York, New York 10006, and PDR Services
Corporation ("PDR"), a wholly-owned subsidiary of the AMEX (AMEX and PDR
---------
hereinafter referred to as the "Licensee").
WHEREAS, Dow Jones compiles, calculates and maintains the indexes specified
on Schedule A hereto, and Dow Jones owns rights in and to such indexes, the
proprietary data contained therein, and the Dow Jones Marks (defined below)
(such rights, including without limitation, copyright, trademark or proprietary
rights and trade secrets, being hereinafter collectively referred to as the
"Intellectual Property"); and
- --------------------------
WHEREAS, Dow Jones uses in commerce and has trade name and/or trademark
rights to the designations "Dow Jones," "Dow Jones Industrial Average," "DJIA,"
"30 Industrials," "Dow Jones Transportation Average," "Dow Jones Utilities
Average," "Dow Jones Global Indexes," "DJGI," "DIAMONDS," and those designations
listed on Schedule A hereto (and Annex I thereto) (such rights being hereinafter
individually and collectively referred to as the "Dow Jones Marks"); and
---------------
WHEREAS, the Licensee wishes to use certain of such indexes and the related
Dow Jones Marks, pursuant to the terms and conditions hereinafter set forth, in
connection with (i) the issuance, marketing; and promotion of the Products (as
defined in Section l(b)) and (ii) making disclosure about the Products under
applicable laws, rules and regulations in order to indicate that Dow Jones is
the source of such indexes.
<PAGE>
NOW, THEREFORE, in consideration of the premises an covenants and
agreements contained herein, it is agreed as follows:
1. Grant of License.
----------------
(a) Subject to the terms and conditions of this Agreement, Dow Jones hereby
grants to the Licensee a non-transferable (except to affiliates pursuant to
Section 12(a)) exclusive (subject to Section 1(f) license (i) to use the Indexes
(defined below) solely in connection with the issuance of the Products to be
issued by the Licensee and traded on or through the Licensee during the hours of
9:30 a.m. to 4:15 p.m. Eastern Time and (ii) to use and refer to the Dow Jones
Marks in connection with the marketing and promotion of the Products in order to
indicate the source of the Indexes and as may otherwise be required by
applicable laws, rules or regulations or under this Agreement.
(b) As used in this Agreement, the "Indexes" means the indexes listed on
-------
Annex II to Schedule A (and the indexes to be added thereto in accordance with
the provisions set forth thereon).
(c) As used in this Agreement, "Products" means the products designated on
Schedule B hereto that are based upon one or more of the Indexes (but not any
part of any Index other than the whole Index, and not any subset of the
components of any Index) and correlated to the underlying securities comprising
such Indexes. As used in this Agreement, the "Initial Product" means a Product
based on the Dow Jones Industrial Average Index (the "DJIA") that Licensee
----
expects to trade under the name "DIAMONDS". The terms of the Products, and any
material changes therein, will be subject to Dow Jones' prior written consent.
Unless otherwise expressly agreed by Dow Jones in writing, the Initial Product
shares would change hands at the date of the initial issuance thereof for 1/100
of the then value of the DJIA per share.
(d) Until the third anniversary of the date hereof Dow Jones will not
license any person or entity other than the Licensee to use any of the Reserved
Indexes
<PAGE>
listed on Annex III to Schedule A in connection with the issuance, marketing,
and promotion of any exchange-traded open-end funds (including UITs).
(e) The Licensee agrees that it will issue at least five (5) Products by
the third anniversary of the date hereof. The Licensee agrees that the first
Product to be issued by it will be the Initial Product, and that the Licensee
will use all reasonable efforts to issue the Initial Product as soon as
practicable after the date hereof but not prior to the earlier of (x) 90 days
after the commencement of trading by the Chicago Board Options Exchange, Inc. of
cash index options contracts based on the DJIA or (y) January 1, 1998.
(f) Dow Jones at any time or from time to time during the Term (defined in
Section 2) may propose in writing that the Licensee issue a new Product. If the
Licensee shall not, within 60 days after receipt of such written proposal,
deliver to Dow Jones a written commitment (reasonably satisfactory in form and
substance to Dow Jones) to issue such Product, in accordance with the terms of
this License Agreement, within a reasonably prompt time frame, or, if the
Licensee does deliver such a written commitment but does not fulfill it on a
timely basis, then notwithstanding anything to the contrary contained in this
Agreement, Dow Jones shall thereafter be free to license any other person or
entity to issue such a product (to be traded other than by or through the
Licensee). If the Licensee in good faith considers itself to have a legal or
business conflict precluding the Licensee from sponsoring such Product, then the
Licensee will have 120 days from the date of receipt of the Dow Jones proposal
to find an alternate sponsor to issue such Product to be traded on or through
the Licensee (provided, that the designation of such alternate sponsor shall be
-----------
subject to Dow Jones' written approval).
(g) Dow Jones agrees that no person or entity other than the Licensee shall
need to obtain a license from Dow Jones with respect to the initial sale of the
Products or subsequent resales of the Products in the secondary market.
<PAGE>
(h) Subject only to Section 1(a) and 1(d), nothing contained in this
Agreement shall restrict Dow Jones from licensing any one or more of Dow Jones'
indexes or the Dow Jones Marks to any other person or entity at any time.
(i) Nothing contained in this Agreement constitutes a license to the
Licensee to use any one or more of the Indexes other than in connection with the
issuance, marketing and promotion of the Products. The Licensee acknowledges and
agrees that it shall not have any right to issue, list or trade options based on
any Dow Jones indexes, including (x) options on the Initial Product and (y)
except with Dow Jones' prior written consent, options on any other Product.
(j) The Licensee acknowledges that the Indexes and the Dow Jones Marks are
the exclusive property of Dow Jones and that Dow Jones has and retains all
Intellectual Property and other proprietary rights therein. Except as otherwise
specifically provided herein, Dow Jones reserves all rights to the Indexes and
the Dow Jones Marks, and this Agreement shall not be construed to transfer to
the Licensee any ownership right to, or equity interest in, the Indexes or the
Dow Jones Marks, or in any Intellectual Property or other proprietary rights
pertaining thereto.
(k) The Licensee acknowledges that the Indexes and their compilation and
composition, and any changes therein, are and will be in the complete control
and sole discretion of Dow Jones.
2. Term.
The term of this Agreement shall commence as of the date hereof and shall
remain in full force and effect for five (5) years after the date of launch (the
"Commencement Date") of the Initial Product (the first twelve months following
- ---------------------
the Commencement Date being referred to herein as the "First Year," the next
--------------
twelve months referred to as the "Second Year," and so on) unless this Agreement
---------------
is terminated earlier as provided herein (such term being referred to herein as
the "Initial Term"). Upon the expiration of the Initial Term (other than by
-----------------
reason of termination of this
<PAGE>
Agreement as provided herein), this Agreement may be renewed at the election of
the Licensee, by delivery of written notice to Dow Jones to that effect at least
120 days prior to expiration of the Initial Term, for an additional term of five
(5) years (the "Renewal Term"), provided, however, that such election shall not
---------------------------
be effective, and the Initial Term shall expire without renewal, at Dow Jones'
discretion, if at the end of the Initial Term the aggregate assets in the
Products shall not equal at least $5 billion.
3. License Fees.
------------
(a) As consideration for the license granted herein, the Licensee shall pay
license fees ("License Fees") as set forth on Schedule C hereto.
-----------------
(b) Dow Jones shall have the right to audit on a confidential basis the
relevant books and records of the Licensee to confirm the accuracy of any one or
more calculations of Licensee Fees. Dow Jones shall bear its own costs of any
such audit unless it is determined that Dow Jones has been underpaid by 5% or
more with respect to the payments being audited, in which case Dow Jones' costs
of such audit shall be paid by the Licensee.
4. Termination.
-----------
(a) If there is a material breach of this Agreement by either party (such
party, the "breaching party," and, the other party, the "non-breaching party"),
----------- -----------------------
or if either party (such party, the "harmed party") believes in good faith that
--------
material damage or harm is occurring to its reputation or good will by reason of
its continued performance hereunder (other than pursuant to Section 4(g)),
then the non-breaching party or the harmed party, as the case may be, may
terminate this Agreement, effective thirty (30) days after written notice
thereof to the other party (with reasonable specificity as to the nature of the
breach or the condition causing such damage or harm, as the case may be, and
including a statement as to such party's intent to terminate), unless the other
party shall
<PAGE>
correct such breach or the condition causing such damage or harm, as the case
may be, within such 30-day period.
(b) The Licensee or Dow Jones may terminate this Agreement upon ninety (90)
days prior written notice to the other (or such lesser period of time as may be
necessary pursuant to law, rule, regulation or court order) if (i) any
legislation or regulation is finally adopted or any government interpretation is
issued that prevents the Licensee from issuing, marketing or promoting the
Products; (ii) any material litigation or regulatory proceeding regarding the
Products is commenced; or (iii) the Licensee elects to terminate the public
offering or other distribution of the Products.
(c) Dow Jones may terminate this Agreement upon ninety (90) days prior
written notice to the Licensee (or such lesser period of time as may be
necessary pursuant to law, rule, regulation or court order) if (i) any
legislation or regulation is finally adopted or any government interpretation is
issued that in Dow Jones' reasonable judgment materially impairs Dow Jones'
ability to license and provide the Indexes or the Dow Jones Marks under this
Agreement; (ii) any litigation or proceeding is commenced which relates,
directly or indirectly, to Dow Jones' licensing and providing the Indexes or the
Dow Jones Marks under this Agreement, or any such litigation proceeding is
threatened and Dow Jones reasonably believes that such litigation or proceeding
would be reasonably likely to have a material and adverse effect on the Indexes
or the Dow Jones Marks or on Dow Jones' ability to perform under this Agreement;
or (iii) Dow Jones elects (other than pursuant to Section 4(g)) to cease
compiling, calculating and publishing values of the Indexes.
(d) Dow Jones may terminate this Agreement (i) 360 days after the date
hereof if the Initial Product has not by such date received all necessary
regulatory authorizations for its issuance, listing and trading, or (ii) 30 days
after the date of receipt of all such necessary regulatory authorizations if the
Initial Product has not by then been issued and listed, with trading having
commenced.
<PAGE>
(e) During any Renewal Term, Dow Jones may terminate this Agreement if at
the end of any Year the aggregate asset levels in the Products at such Year-end
did not equal or exceed $5 billion.
(f) Dow Jones may terminate this Agreement upon written notice to the
Licensee if any securities exchange ceases to provide data to Dow Jones
necessary for providing the Indexes, terminates Dow Jones' right to receive data
in the form of a "feed" from such securities exchange, materially restricts Dow
Jones' right to redistribute data received from such securities exchange, or
institutes charges of a type or to an extent applicable to Dow Jones (and not to
others generally) for the provision of data to Dow Jones or the redistribution
of data by Dow Jones.
(g) Notwithstanding anything to the contrary herein, Dow Jones shall have
the right, in its sole discretion, to cease compiling, calculating and
publishing values of any one or more of the Indexes, and to terminate this
Agreement with respect only to such Indexes, at any time that Dow Jones
determines that such Indexes no longer meet or will not be capable of meeting
the criteria established by Dow Jones for maintaining such Indexes (and in such
event Dow Jones will use all reasonable efforts to provide the Licensee with as
much prior notice as is reasonably practicable under the circumstances).
(h) In the event that Dow Jones terminates this Agreement pursuant to
Section 4(c)(iii), 4(f) or 4(g), the Licensee may compile, calculate and publish
values of any terminated Indexes listed on Annex II to Schedule A hereto, and
may continue to trade securities based thereon outstanding on the termination
date, provided that the Licensee does not use any Dow Jones Marks in connection
therewith. At the time of such termination, Dow Jones will provide to the
Licensee, on a confidential basis, such information as it may need to compile,
calculate and publish such terminated Indexes.
(i) The right of a party hereunder to terminate this Agreement shall be in
addition to (and not in substitution of) any other rights and remedies that may
be available to such party.
<PAGE>
5. Dow Jones Obligations; Licensee's Obligations.
----------------------------------------------
(a) Dow Jones is not, and shall not be, obligated to engage in any way or
to any extent in any marketing or promotional activities in connection with the
Products or in making any representation or statement to investors or
prospective investors in connection with the marketing or promotion of the
Products by the Licensee.
(b) Dow Jones agrees to provide reasonable support for the Licensee's
development and educational efforts with respect to the Products as follows:
(i) Dow Jones shall respond in a timely fashion to any reasonable
requests by the Licensee for information regarding the Indexes.
(ii) Dow Jones or its agent shall, or Dow Jones shall arrange for a
third party vendor to, calculate and disseminate the values of each of
the Indexes at least once every fifteen (15) seconds on each day that
the New York Stock Exchange (or the primary stock exchange for the
component securities of the applicable Index) is open for trading, in
each case in accordance with Dow Jones' current procedures, which
procedures may be modified by Dow Jones.
(iii) Dow Jones shall promptly correct, or instruct its agent to
correct, any mathematical errors made in Dow Jones' computations of
the Indexes which are brought to Dow Jones' attention by the Licensee.
Notwithstanding anything herein to the contrary, nothing in this Section 5 shall
give the Licensee the right to exercise any judgment or require any changes with
respect to Dow Jones' method of composing, calculating or determining the
Indexes, and nothing in this Section 5 shall be deemed to modify the provisions
of Section 9 of this Agreement.
(c) Dow Jones has, and shall maintain, a policy pursuant to which its
employees who are directly responsible for changes in the components of the
Indexes are prohibited from
<PAGE>
purchasing or beneficially owning any interest in the Products. The Licensee
shall have no responsibility for ensuring that such Dow Jones employees comply
with such Dow Jones policy and shall have no duty to inquire whether any
purchasers or sellers of the Products are such Dow Jones employees. Dow Jones
shall have no liability to the Licensee or its affiliates with respect to Dow
Jones' employees' adherence or failure of adherence to such policy.
(d) Dow Jones shall use reasonable efforts to safeguard the
confidentiality of all impending changes in the components or method of
computation of the Indexes until such changes are publicly disseminated, and
shall require the same of any agent with whom it has contracted for computation
thereof. Dow Jones shall implement reasonable procedures so that only those
persons at Dow Jones directly responsible for changes in the composition or
method of computation of the Indexes shall be granted access to information
respecting impending changes.
(e) The Licensee will develop and implement a marketing program to
promote the Products. The Licensee will spend [ !!! ]from the date
hereof through the end of the Third Year in implementing the marketing program.
(f) Prior to the first date of the commencement of trading of
Products, the Licensee will adopt, and during the Term the Licensee will
maintain, as part of its rules, to be set forth in the terms of the Products and
in the Licensee's rulebook, a limitation on Dow Jones' liability as the licensor
of the Indexes, with respect to trading on or through the Licensee comparable to
the limitation on the liability of the Standard & Poor's Corporation with
respect to the trading on Licensee of Standard & Poor's Depository Receipts
("SPDRs") based on the S&P 500 Index as set forth in Licensee's Rule 1004.
<PAGE>
6. Trademark Filings; Recognition of Intellectual Property Rights;
Protection of Intellectual Property; Quality Control.
---------------------------------------------------------------
(a) During the Term, Dow Jones shall apply for such trademark and
trade name registrations for the Dow Jones Marks only in such jurisdictions, if
any, where Dow Jones, in its sole discretion, considers such filings
appropriate. The Licensee shall reasonably cooperate with Dow Jones in the
maintenance of such rights and registrations and shall do such acts and execute
such instruments as are reasonably necessary or appropriate for such purpose.
The Licensee shall use the following notice when referring to any of the Indexes
or any of the Dow Jones Marks in any informational materials to be used in
connection with the Products (including, where applicable, all prospectuses,
registration statements, advertisements, brochures and promotional and any other
similar informational materials, and any documents or materials required to be
filed with governmental or regulatory agencies) that in any way use or refer to
Dow Jones, any of the Indexes or any of the Dow Jones Marks (collectively, the
"Informational Materials"):
- ---------------------------
"Dow Jones," and "[INSERT Name of Index(es)]TM " are
trademarks of Dow Jones & Company, Inc. and have been licensed
for use for certain purposes by [INSERT Name of Licensee].
[INSERT Name of Licensee's [INSERT Name of Product(s)] based
on the [INSERT Name of Index]TM are not sponsored, endorsed,
sold or promoted by Dow Jones, and Dow Jones makes no
representation regarding the advisability of investing in such
product(s).
or such similar language as may be approved in advance in writing by Dow Jones.
(b) The Licensee agrees that the Dow Jones Marks and all Intellectual
Property and other rights, registrations and entitlement thereto, together with
all applications, registrations and filings with respect to any of the Dow Jones
Marks and any renewals and extensions of any such
<PAGE>
applications, registrations and filings, are and shall remain the sole and
exclusive property of Dow Jones. The Licensee acknowledges that each of the Dow
Jones Marks is part of the business and goodwill of Dow Jones and agrees that it
shall not, during the term of this Agreement or thereafter, contest the fact
that the Licensee's rights in the Dow Jones Marks under this Agreement (i) are
limited solely to the use of the Dow Jones Marks in connection with the
issuance, marketing, and/or promotion of the Products and disclosure about the
Products under applicable law as provided in Section 1(a), and (ii) shall cease
upon termination or expiration of this Agreement, except as otherwise expressly
provided herein. The Licensee recognizes the great value of the reputation and
goodwill associated with the Dow Jones Marks and acknowledges that such goodwill
associated with the Dow Jones Marks belongs exclusively to Dow Jones, and that
Dow Jones is the owner of all right, title and interest in and to the Dow Jones
Marks in connection with the Products. The Licensee further acknowledges that
all rights in any translations, derivatives or modifications in the Dow Jones
Marks which may be created by or for the Licensee shall be and shall remain the
exclusive property of Dow Jones and said property shall be and shall remain a
part of the Intellectual Property subject to the provisions and conditions of
this Agreement. The Licensee shall never, either directly or indirectly, contest
Dow Jones' exclusive ownership of any of the Intellectual Property.
Notwithstanding anything herein to the contrary, in the event that Dow Jones
consents to, and the Licensee uses, any Dow Jones Mark in conjunction with the
Licensee's own trademark(s), such resulting mark shall be part of the
Intellectual Property of Dow Jones and included in the Dow Jones Marks as
defined herein, and Dow Jones shall be permitted to register such usage in any
jurisdiction it deems reasonably necessary and/or prudent to do so, without
opposition from the Licensee. The Licensee agrees to cooperate with Dow Jones in
the maintenance of such rights and registrations and shall do such acts and
execute such instruments as are reasonably necessary or appropriate for such
purpose.
<PAGE>
(c) In the event that the Licensee learns of any infringement or
imitation of any of the Indexes and/or any Dow Jones Mark, or of any use by any
person of a trademark similar to any of the Dow Jones Marks, it shall promptly
notify Dow Jones. Dow Jones shall take such action as it deems advisable for the
protection of rights in and to the Indexes and the Dow Jones Marks and, if
requested to do so by Dow Jones, the Licensee shall cooperate with Dow Jones in
all respects, at Dow Jones' expense, including, without limitation, by being a
plaintiff or co-plaintiff and, upon Dow Jones' reasonable request, by causing
its officers to execute appropriate pleadings and other necessary documents. In
no event, however, shall Dow Jones be required to take any action it deems
inadvisable. The Licensee shall have no right to take any action which would
materially affect any of the Indexes and/or any of the Dow Jones Marks without
Dow Jones' prior written approval.
(d) The Licensee shall use its best efforts to protect the goodwill
and reputation of Dow Jones, the Indexes and the Dow Jones Marks in connection
with its use of the Indexes and any of the Dow Jones Marks under this Agreement.
The Licensee shall submit to Dow Jones, for Dow Jones' review and approval, and
the Licensee shall not use until receiving Dow Jones' approval thereof in
writing, all Informational Materials. Dow Jones' approval shall be required with
respect to the use of and description of Dow Jones, any of the Indexes or any of
the Dow Jones Marks. Dow Jones shall notify the Licensee of its approval or
disapproval of any Informational Materials within 48 hours (excluding any day
which is a Saturday or Sunday or a day on which The New York Stock Exchange is
closed) following receipt thereof from the Licensee. Once Informational
Materials have been approved by Dow Jones, subsequent Informational Materials
which do not alter the use or description of Dow Jones, such Indexes or such Dow
Jones Marks, as the case may be, need not be submitted for review and approval
by Dow Jones.
(e) Except as may be expressly otherwise agreed in writing by Dow Jones,
(i) the Licensee shall not use, nor permit the use of, the Dow Jones Marks in
any Informational Material
<PAGE>
as part of a composite mark with any of its own marks, the marks of any of its
affiliates or the marks of any third party (collectively; the "Non-Dow Jones
--------------
Marks"), and (ii) the Dow Jones Marks and the Non-Dow Jones Marks, to the extent
- ---------
they appear in any Informational Material, shall appear separately and shall be
clearly identified with regard to ownership. Whenever the Dow Jones Marks are
used in any Informational Material in connection with any of the Products, the
name of the Licensee shall appear in close proximity to the Dow Jones Marks so
that the identity of the Licensee, and its status as an authorized licensee of
such Dow Jones Marks, is clear and obvious.
(f) The Licensee agrees that any proposed change in the use of the Dow
Jones Marks shall be submitted to Dow Jones for, and shall be subject to, Dow
Jones' prior written consent.
(g) If at any time Dow Jones is of the opinion that the Licensee is
not properly using the Intellectual Property in connection with the Products or
Informational Materials, or that the standard of quality of any of the Products
or Informational Materials does not conform to the standards as set forth
herein, Dow Jones shall give written notice to the Licensee to that effect. Upon
receipt of such notice, the Licensee shall forthwith correct the defects in the
non-conforming Products or Informational Materials so that they comply with all
required standards or cease the issuance, marketing, promotion and sale of the
non-conforming Products or Informational Materials.
(h) The Licensee shall not use any Dow Jones Marks after termination
or expiration of this Agreement .
7. Proprietary Rights.
------------------
(a) The Licensee acknowledges that the Indexes are selected, compiled,
coordinated, arranged and prepared by Dow Jones through the application of
methods and standards of judgment used and developed through the expenditure of
considerable work, time and money by Dow Jones. The Licensee also acknowledges
that the Indexes and the Dow Jones Marks are valuable assets of Dow Jones and
agrees that it will take reasonable measures to prevent any unauthorized use of
the
<PAGE>
information provided to it concerning the selection, compilation, coordination,
arrangement and preparation of the Indexes.
(b) Each party shall treat as confidential and shall not disclose or
transmit to any third party (i) any documentation or other materials that are
marked as "Confidential" by the providing party and (ii) the terms of this
Agreement (collectively, "Confidential Information"). Confidential Information
-----------------------------
as described in clause (i) of the preceding sentence shall not include (A) any
information that is available to the public or to the receiving party hereunder
from sources other than the providing party (provided that such source is not
subject to a confidentiality agreement with regard to such information) or (B)
any information that is independently developed by the receiving party without
use of or reference to information from the providing party.
(c) Notwithstanding the foregoing, either party may reveal
Confidential Information to any regulatory agency or court of competent
jurisdiction if such information to be disclosed is (i) approved in writing by
the providing party for disclosure or (ii) required by law, regulatory agency or
court order to be disclosed by the receiving party, provided, if permitted by
law, that prior written notice of such required disclosure is given to the
providing party and provided further that the receiving party shall cooperate
with the providing party to limit the extent of such disclosure. The provisions
of Sections 7(b) and (c) shall survive termination or expiration of this
Agreement for a period of five (5) years from disclosure by either party to the
other of the last item of such Confidential Information.
8. Warranties; Disclaimers.
-----------------------
(a) Each party represents and warrants to the other that it has the
authority to enter into this Agreement according to its terms, and that its
execution and delivery of this Agreement and its performance hereunder will not
violate any agreement applicable to it or violate any applicable laws, rules or
regulations. Dow Jones represents that it owns and has the right to
<PAGE>
license hereunder the Intellectual Property licensed hereunder. The Licensee
represents and warrants to Dow Jones that the issuance, marketing, promotion,
sale and resale of the Products by the Licensee will not violate any agreement
applicable to the Licensee or violate any applicable laws, rules or regulations,
including without limitation, securities, commodities, and banking laws.
(b) The Licensee shall include the statement contained in Exhibit I
hereto in each prospectus and registration statement and in any contracts
relating to the Products (and upon request shall furnish copies thereof to Dow
Jones), and the Licensee expressly agrees to be bound by the terms of the
statement contained in Exhibit I hereto (which terms are expressly incorporated
herein by reference and made a part hereof). Any changes in the statement
contained in Exhibit I hereto must be approved in advance in writing by an
authorized officer of Dow Jones.
(c) Without limiting the disclaimers set forth in this Agreement,
(including in Exhibit I hereto), in no event shall the cumulative liability of
Dow Jones to the Licensee and its affiliates under or relating to this Agreement
at any time exceed the aggregate amount of License Fees received by Dow Jones
pursuant to this Agreement prior to such time.
9. Indemnification.
(a) The Licensee shall indemnify and hold harmless Dow Jones and its
affiliates, and their respective officers, directors, members, employees and
agents, against any and all judgments, damages, liabilities, costs and losses of
any kind (including reasonable attorneys' and experts' fees) (collectively,
"Losses") that arise out of or relate to (i) any breach by the Licensee of its
- ----------
representations and warranties or covenants under this Agreement, or (ii) any
claim, action or proceeding that arises out of or relates to (x) this Agreement
(except to the extent such Losses arise out of or relate to a breach by Dow
Jones of its representations and warranties under this Agreement) or (y) the
Products; provided, however, that Dow Jones must promptly notify the Licensee in
----------
writing of any such claim, action or proceeding (but the failure to do so shall
not relieve the Licensee of any liability hereunder except to the extent the
Licensee has been materially prejudiced therefrom). The
<PAGE>
Licensee may elect, by written notice to Dow Jones within ten (10) days after
receiving notice of such claim, action or proceeding from Dow Jones, to assume
the defense thereof with counsel reasonably acceptable to Dow Jones. If the
Licensee does not so elect to assume such defense or disputes its indemnity
obligation with respect to such claim, action or proceeding, or if Dow Jones
reasonably believes that there are conflicts of interest between Dow Jones and
the Licensee or that additional defenses are available to Dow Jones with respect
to such defense, then Dow Jones shall retain its own counsel to defend such
claim, action or proceeding, at the Licensee's expense. The Licensee shall
periodically reimburse Dow Jones for its expenses incurred under this Section 9.
Dow Jones shall have the right, at its own expense, to participate in the
defense of any claim, action or proceeding against which it is indemnified
hereunder; provided, however , that Dow Jones shall have no right to control the
------------------
defense, consent to judgment, or agree to settle any such claim, action or
proceeding without the written consent of the Licensee unless Dow Jones waives
its right to indemnity hereunder. The Licensee, in the defense of any such
claim, action or proceeding, except with the written consent of Dow Jones, shall
not consent to entry of any judgment or enter into any settlement which (i) does
not include, as an unconditional term, the grant by the claimant to Dow Jones of
a release of all liabilities in respect of such claims or (ii) otherwise
adversely affects the rights of Dow Jones.
(b) Dow Jones shall indemnify and hold harmless Licensee and its
affiliates, and their respective officers, members, employees and
agents, against any and all judgments, damages, liabilities, costs and losses of
any kind (including reasonable attorneys' and experts' fees) (collectively,
"Losses") that arise out of or relate to any breach by Dow Jones of its
representations and warranties under this Agreement; provided, however, that
-------------------
Licensee must promptly notify Dow Jones in writing of any such claim, action or
proceeding (but the failure to do so shall not relieve Dow Jones of any
liability hereunder except to the extent Dow Jones has been materially
prejudiced
<PAGE>
therefrom). Dow Jones may elect, by written notice to the Licensee within ten
(10) days after receiving notice of such claim, action or proceeding from the
Licensee, to assume the defense thereof with counsel reasonably acceptable to
the Licensee. If Dow Jones does not so elect to assume such defense or disputes
its indemnity obligation with respect to such claim, action or proceeding, or if
the Licensee reasonably believes that there are conflicts of interest between
the Licensee and Dow Jones or that additional defenses are available to the
Licensee with respect to such defense, then the Licensee shall retain its own
counsel to defend such claim, action or proceeding, at Dow Jones' expense. Dow
Jones shall periodically reimburse the Licensee for its expenses incurred under
this Section 9. The Licensee shall have the right, at its own expense, to
participate in the defense of any claim, action or proceeding against which it
is indemnified hereunder; provided, however, that the Licensee shall have no
----------
right to control the defense, consent to judgment, or agree to settle any such
claim, action or proceeding without the written consent of Dow Jones unless the
Licensee waives its right to indemnity hereunder. Dow Jones, in the defense of
any such claim, action or proceeding, except with the written consent of the
Licensee, shall not consent to entry of any judgment or enter into any
settlement which (i) does not include, as an unconditional term, the grant by
the claimant to the Licensee of a release of all liabilities in respect of such
claims or (ii) otherwise adversely affects the rights of the Licensee.
(c) The indemnification provisions set forth herein are solely for the
benefit of the indemnified parties and are not intended to, and do not, create
any rights or causes of actions on behalf of any third party.
10. Suspension of Performance.
-------------------------
Notwithstanding anything herein to the contrary, neither Dow Jones nor
the Licensee shall bear responsibility or liability for any Losses arising out
of any delay in or interruptions of performance of their respective obligations
under this Agreement due to any act of God, act of governmental authority, or
act of public enemy, or due to war, the outbreak or escalation of
<PAGE>
hostilities, riot, fire, flood, civil commotion, insurrection, labor difficulty
(including, without limitation, any strike, other work stoppage, or slow-down),
severe or adverse weather conditions, power failure, communications line or
other technological failure, or other similar cause beyond the reasonable
control of the party so affected.
11. Injunctive Relief.
------------------
In the event of a material breach by one party ("Breaching Party") of
--------------------
provisions of this Agreement relating to the Confidential Information of the
other party ("Non-breaching Party"), the Breaching Party acknowledges and agrees
-------------------------
that damages would be an inadequate remedy and that the Non-breaching Party
shall be entitled to preliminary and permanent injunctive relief to preserve
such confidentiality or limit improper disclosure of such Confidential
Information, but nothing herein shall preclude the Non-breaching Party from
pursuing any other action or remedy for any breach or threatened breach of this
Agreement. All remedies under this Section 11 shall be cumulative.
12. Other Matters.
-------------
(a) This Agreement is solely and exclusively between the parties
hereto and, except to the extent otherwise expressly provided herein, shall not
be assigned or transferred, nor shall any duty hereunder be delegated, by either
party, without the prior written consent of the other party, and any attempt to
so assign or transfer this Agreement or delegate any duty hereunder without such
written consent shall be null and void; provided, however, that any affiliate
----------
which, directly or indirectly, controls, is controlled by or is under common
control with the Licensee may use the Indexes and the Dow Jones Marks in
connection with the issuance, marketing and promotion of the Products, provided
that such affiliate shall be subject to all of the terms and conditions of this
Agreement applicable to the Licensee. This Agreement shall be valid and binding
on the parties hereto and their successors and permitted assigns.
<PAGE>
(b) This Agreement, including the Schedules and Exhibits hereto (which
are hereby expressly incorporated into and made a part of this Agreement),
constitutes the entire agreement of the parties hereto with respect to its
subject matter, and supersedes any and all previous agreements between the
parties with respect to the subject matter of this Agreement. There are no oral
or written collateral representations, agreements or understandings except as
provided herein.
(c) No waiver, modification or amendment of any of the terms and
conditions hereof shall be valid or binding unless set forth in a written
instrument signed by duly authorized officers of both parties. The delay or
failure by any party to insist, in any one or more instances, upon strict
performance of any of the terms or conditions of this Agreement or to exercise
any right or privilege herein conferred shall not be construed as a waiver of
any such term, condition, right or privilege, but the same shall continue in
full force and effect.
(d) No breach, default or threatened breach of this Agreement by
either party shall relieve the other party of its obligations or liabilities
under this Agreement with respect to the protection of the property or
proprietary nature of any property which is the subject of this Agreement.
(e) All notices and other communications under this Agreement shall be
(i) in writing, (ii) delivered by hand (with receipt confirmed in writing), by
registered or certified mail (return receipt requested), or by facsimile
transmission (with receipt confirmed in writing), to the address or facsimile
number set forth below or to such other address or facsimile number as either
party shall specify by a written notice to the other, and (iii) deemed given
upon receipt.
If to Dow Jones: Dow Jones & Company, Inc.
---------------
200 Liberty Street
New York, New York 10281
Attn..: David E. Moran,
President, Dow Jones Global Indexes
<PAGE>
Fax No.: 212/416-2524
With a copy to: Fried, Frank, Harris, Shriver & Jacobson
--------------
One New York Plaza
New York, New York 10004
Attn.: Gail Weinstein, Esq.
Fax No.: 212/859-8585
If to the Licensee: American Stock Exchange
------------------
86 Trinity Place
New York, New York 10006
Attn.: Gary Gastineau
Fax No.: 212/306-5780
(f) This Agreement shall be interpreted, construed and enforced in
accordance with the laws of the State of New York without reference to or
inclusion of the principles of choice of law or conflicts of law of that
jurisdiction. It is the intent of the parties that the substantive law of the
State of New York govern this Agreement and not the law of any other
jurisdiction incorporated through choice of law or conflicts of law principles.
Each party agrees that any legal action, proceeding, controversy or claim
between the parties arising out of or relating to this Agreement may be brought
and prosecuted only in the United States District Court for the Southern
District of New York or in the Supreme Court of the State of New York in and for
the First Judicial Department, and by execution of this Agreement each party
hereto submits to the exclusive jurisdiction of such court and waives any
objection it might have based upon improper venue or inconvenient forum. Each
party hereto waives any right it may have to a jury trial in connection with any
legal action, proceeding, controversy or claim between the parties arising out
of or relating to the Agreement.
(g) This Agreement (and any related agreement or arrangement between
the parties hereto) is solely and exclusively for the benefit of the parties
hereto and their respective successors, and nothing in this Agreement (or any
related agreement or arrangement between the parties hereto), express or
implied, is intended to or shall confer on any other person or entity
<PAGE>
(including, without limitation, any purchaser of any Products issued by the
Licensee), any rights, benefits or remedies of any nature whatsoever under or by
reason of this Agreement (or any such related agreement or arrangement between
the parties hereto).
(h) Sections 6(b), 7(b) and (c) (as provided therein), 8, 9, 11,
12(e), (f) and (g) and this Section 12(h), shall survive the expiration or
termination of this Agreement.
(i) The parties hereto are independent contractors. Nothing herein
shall be construed to place the parties in the relationship of partners or joint
venturers, and neither party shall acquire any power, other than as specifically
and expressly provided in this Agreement, to bind the other in any manner
whatsoever with respect to third parties.
(j) All references herein to "reasonable efforts" shall include taking
into account all relevant commercial and regulatory factors. All references
herein to "regulations" or "regulatory proceedings" shall include regulations or
proceedings by self-regulatory organizations such as securities exchanges.
(k) Dow Jones represents that the License Agreement between Dow Jones
and The Chicago Board Options Exchange, Inc. (the "CBOE"), dated June 5, 1997,
(i) prohibits the CBOE (or any affiliated exchange controlled by the CBOE) from
seeking unlisted trading privileges on any open-end exchange-traded funds
(including UITs) licensed by Dow Jones to any other party; (ii) provides that
the CBOE cannot trade an option on any exchange-traded open-end funds (including
UITs) based on the DJIA unless both (x) a third party which is not a licensee of
Dow Jones indexes begins to trade any such options and (y) Dow Jones consents to
the issuance of such options; and (iii) provides that the CBOE cannot trade
options on any exchange-traded open-end funds (including UITs) based on any
other Dow Jones index unless Dow Jones consents to the issuance of such options.
<PAGE>
IN WITNESS WHEREOF, the parties have caused this. Agreement to be
executed as of the date first set forth above.
DOW JONES & COMPANY, INC.
By: /s/ David E. Moran
--------------------------------
Name: David E. Moran
Title: Vice President/Law and Deputy
General Counsel
Dow Jones & Company, Inc.
AMERICAN STOCK EXCHANGE, INC.
By: /s/ Richard F. Syron
--------------------------------
Name: Richard F. Syron
Title: Chairman and Chief Executive
Officer
PDR SERVICES CORPORATION
By: /s/ Joseph B. Stefanelli
-------------------------------
Name: Joseph B. Stefanelli
Title: President
<PAGE>
INDEX OF ATTACHMENTS
SCHEDULES
- ---------
Schedule A Indexes
Annex I DJGI Indexes
Annex II Indexes Being Licensed
Annex III Reserved Indexes
Schedule B Products Description
Schedule C License Fees
EXHIBITS:
- ---------
Exhibit I Disclaimer Language
<PAGE>
SCHEDULE A
----------
INDEXES
-------
. Dow Jones Industrial Average
. Dow Jones Transportation Average
. Dow Jones Utilities Average
. Dow Jones Global Indexes listed on Annex I to this Schedule A
<PAGE>
ANNEX I
TO SCHEDULE A
-------------
<PAGE>
ANNEX I
DOW JONES GLOBAL INDEXES
5:30 p.m. Friday, May 30, 1997
<TABLE>
<CAPTION>
DS GLOBAL ________________NY U.S. DOLLARS______________________________________________________
REGION/ INDEXES PCT 5:30P.M. PCT. L2.M L2MO L2MO PCT. FROM PCT.
COUNTRY LOCAL CURRENCY CHG. INDEX CHG. CHG. HIGH LOW CHG. CHG. L2/II CHG.
_____________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
Americas 137.23 + 1.04 + 0.33 197.51 146.19 + 40.85 + 26.11 + 23.89 + 13.78
_____________________________________________________________________________________________________________________
Canada 175.13 + 0.24 147.34 + 0.73 + 0.53 150.20 110.46 + 29.87 + 25.32 + 12.43 + 9.18
_____________________________________________________________________________________________________________________
Mexico 253.47 + 0.72 111.75 + 0.58 + 0.52 113.01 85.56 + 17.25 + 13.26 + 17.43 + 13.43
_____________________________________________________________________________________________________________________
U.S. 793.47 + 0.53 793.46 + 4.23 + 0.53 799.28 591.10 +165.31 + 25.21 + 97.90 + 13.97
_____________________________________________________________________________________________________________________
Europe/Africa 171.89 - 2.35 - 1.53 176.96 133.43 + 23.73 + 20.07 + 11.59 + 7.23
_____________________________________________________________________________________________________________________
Austria 123.31 - 1.31 110.36 - 1.31 - 1.61 114.62 100.23 - 2.70 - 2.39 + 0.36 + 0.32
_____________________________________________________________________________________________________________________
Belgium 193.45 - 0.43 172.25 - 1.38 - 0.79 176.63 143.00 + 24.98 + 16.98 + 13.61 + 8.38
_____________________________________________________________________________________________________________________
Denmark 163.77 - 0.41 154.63 - 1.54 - 0.99 159.13 114.59 + 33.60 + 33.27 + 17.33 + 12.66
_____________________________________________________________________________________________________________________
Finland 375.51 - 2.02 302.65 - 8.33 - 2.53 316.01 201.41 + 74.75 + 32.30 + 21.93 + 7.31
_____________________________________________________________________________________________________________________
France 156.52 - 0.52 140.57 - 1.44 - 1.01 153.55 124.57 + 9.65 + 7.37 - 1.70 - 1.20
_____________________________________________________________________________________________________________________
Germany 200.52 - 2.50 177.95 - 5.55 - 3.08 156.09 142.27 + 34.30 + 24.31 + 15.54 + 10.24
_____________________________________________________________________________________________________________________
Ireland 233.44 - 1.07 204.97 - 2.04 - 0.99 203.32 160.07 + 35.56 + 21.07 + 8.97 + 4.53
_____________________________________________________________________________________________________________________
Italy 161.66 - 1.50 117.94 - 2.51 - 2.08 130.10 93.39 + 3.75 + 3.23 + 4.32 + 3.30
_____________________________________________________________________________________________________________________
Netherlands 255.39 - 1.64 232.76 - 5.07 - 2.13 239.34 172.70 + 47.74 + 25.30 + 25.17 + 12.13
_____________________________________________________________________________________________________________________
Norway 195.49 - 1.03 155.33 - 2.57 - 1.53 174.76 133.41 + 25.29 + 13.06 + 5.37 + 3.35
_____________________________________________________________________________________________________________________
South Africa 214.51 - 0.34 131.67 - 1.11 - 0.34 136.30 112.45 - 0.35 - 0.54 + 13.02 + 10.99
_____________________________________________________________________________________________________________________
Spain 243.75 - 1.72 157.34 - 3.05 - 1.73 173.52 119.44 + 44.33 + 36.44 + 13.40 + 12.31
_____________________________________________________________________________________________________________________
Sweden 316.36 - 0.71 205.63 - 3.30 - 1.44 237.60 171.24 + 44.91 + 24.72 + 12.76 + 5.95
_____________________________________________________________________________________________________________________
Switzerland 291.27 - 1.73 279.26 - 5.46 - 1.92 290.43 227.00 + 48.23 + 20.90 + 43.23 + 13.32
_____________________________________________________________________________________________________________________
United Kingdom 130.97 - 1.15 153.39 - 1.73 - 1.08 162.13 124.53 + 30.54 + 23.80 + 6.37 + 4.52
_____________________________________________________________________________________________________________________
Europe/Africa(ex. South Africa 173.89 - 2.94 - 1.56 173.08 138.94 + 30.33 + 23.13 + 11.48 + 7.07
_____________________________________________________________________________________________________________________
Europe/Africa(ex. U.K. & S. Africa) 135.07 - 3.72 - 1.95 193.53 149.93 + 30.73 + 19.79 + 14.50 + 8.45
_____________________________________________________________________________________________________________________
Asia/Pacific 109.53 - 0.74 - 0.57 124.13 93.36 - 13.23 - 10.78 + 0.65 + 0.59
_____________________________________________________________________________________________________________________
Australia 155.37 + 0.75 155.57 + 0.30 + 0.19 157.03 126.73 + 15.44 + 11.02 + 6.80 + 4.57
_____________________________________________________________________________________________________________________
Hong Kong 319.53 + 2.09 320.45 + 6.50 + 2.07 320.45 235.92 + 70.47 + 23.19 + 20.96 + 7.00
_____________________________________________________________________________________________________________________
Indonesia 232.52 + 1.32 190.34 - 2.37 + 1.53 204.08 156.33 - 5.40 - 2.76 + 2.92 + 1.56
_____________________________________________________________________________________________________________________
Japan 90.07 - 1.34 96.69 - 1.27 - 1.30 116.89 79.74 - 13.11 - 15.73 + 1.06 + 1.11
_____________________________________________________________________________________________________________________
Malaysia 215.41 - 0.02 234.40 - 0.13 - 0.08 252.10 223.30 - 16.54 - 6.63 - 31.10 - 11.71
_____________________________________________________________________________________________________________________
New Zealand 156.24 + 0.90 199.17 + 1.50 + 0.51 211.01 165.69 + 23.57 + 16.54 - 4.17 - 2.05
_____________________________________________________________________________________________________________________
Philippines 245.41 + 1.21 292.02 + 3.49 + 1.21 371.03 253.59 - 62.70 - 19.05 - 50.35 - 14.71
_____________________________________________________________________________________________________________________
Singapore 153.15 + 0.45 179.16 + 0.63 + 0.33 210.25 164.33 - 20.16 - 10.11 - 20.67 - 10.35
_____________________________________________________________________________________________________________________
South Korea 114.32 + 0.56 97.66 + 0.59 + 0.51 142.10 80.69 - 43.36 - 30.75 + 6.53 + 7.34
_____________________________________________________________________________________________________________________
Taiwan 194.35 + 0.13 150.07 + 0.40 + 0.22 192.24 139.17 + 39.20 + 27.83 + 19.30 + 12.01
_____________________________________________________________________________________________________________________
Thailand 92.51 + 2.30 87.56 + 3.91 + 4.66 204.31 83.75 -116.95 - 57.10 - 38.80 - 30.63
_____________________________________________________________________________________________________________________
Asia/Pacific(ex. Japan) 199.99 + 1.83 + 0.92 205.51 175.15 + 9.70 + 5.10 - 1.27 - 0.63
_____________________________________________________________________________________________________________________
World(ex. U.S.) 135.35 - 1.50 - 1.10 138.13 121.10 + 5.55 + 4.36 + 5.66 + 4.36
_____________________________________________________________________________________________________________________
DI WORLD STOCK INDEX 160.25 - 0.56 - 0.35 161.55 133.22 + 19.09 + 13.53 + 12.63 + 8.60
_____________________________________________________________________________________________________________________
5:30 p.m., Saturday, May 31, 1997
DS GLOBAL ________________NY U.S. DOLLARS______________________________________________________
REGION/ INDEXES PCT 5:30P.M. PCT. L2.M L2MO L2MO PCT. FROM PCT.
COUNTRY LOCAL CURRENCY CHG. INDEX CHG. CHG. HIGH LOW CHG. CHG. L2/II CHG.
_____________________________________________________________________________________________________________________
Asia/Pacific 109.53 + 0.01 + 0.01 124.13 93.86 - 13.27 - 10.30 + 0.65 + 0.60
_____________________________________________________________________________________________________________________
South Korea 115.52 + 1.74 99.37 + 1.71 + 1.75 142.10 30.63 - 42.08 - 29.75 + 8.39 + 9.22
_____________________________________________________________________________________________________________________
Taiwan 127.93 + 1.34 153.46 + 3.39 + 1.53 192.24 139.17 + 42.04 + 29.73 + 11.69 + 14.11
_____________________________________________________________________________________________________________________
Asia/Pacific(ex. Japan) 200.23 + 0.29 + 0.15 205.51 175.15 + 9.95 + 5.23 - 0.97 - 0.43
_____________________________________________________________________________________________________________________
World(ex. U.S.) 135.36 + 0.01 + 0.01 133.13 121.10 + 5.55 + 1.35 + 5.66 + 4.37
_____________________________________________________________________________________________________________________
DI WORLD STOCK INDEX 160.75 0.00 0.00 151.55 133.22 + 19.03 + 13.52 + 12.53 + 8.60
_____________________________________________________________________________________________________________________
Indexes based on 5/20/92+(a)(for U.S, 12/01/31=ICO for World /tm/ 1997 Dow Jones & Co. Inc., All Rights Reserved.
_____________________________________________________________________________________________________________________
</TABLE>
<PAGE>
INDUSTRY GROUP PERFORMANCE
<TABLE>
<CAPTION>
WORLD U.S. AMERICAS EUROPE ASIA/PACIFIC
- -------- ---------- ---------- -------- -------------
% % % % %
5:30 PM CHG. 5:30 PM CHG. 5:30 PM CHG. 5:30 PM CHG. 5:30 PM CHG.
05/30/97 YTD 5/10/97 YTD 5/10/97 YTD 5/10/97 YTD 5/10/97 YTD
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
141.65 + 3.68 Basic Materials 680.53 + 10.73 173.01 + 8.29 172.43 + 1.52 95.57 + 0.95
- ------------------------------------------------------------------------------------------------------------------------
113.09 + 12.45 Aluminum 563.65 + 15.31 190.10 + 12.33 223.62 + 16.33 94.57 + 3.76
- ------------------------------------------------------------------------------------------------------------------------
130.51 + 7.00 Other Non Ferrous 427.47 + 10.31 158.65 + 7.19 121.95 + 8.70 109.99 + 5.42
- ------------------------------------------------------------------------------------------------------------------------
164.45 + 2.50 Chemicals 931.14 + 10.75 201.46 + 10.04 152.46 - 5.51 100.37 + 3.56
- ------------------------------------------------------------------------------------------------------------------------
133.24 + 2.89 Chem-commodity 1014.19 + 12.56 239.66 + 11.56 203.25 - 6.78 108.67 + 4.98
- ------------------------------------------------------------------------------------------------------------------------
130.70 + 2.53 Chem-specialty 800.21 + 7.33 156.12 + 6.73 137.53 - 1.79 85.76 + 0.03
- ------------------------------------------------------------------------------------------------------------------------
157.13 + 7.36 Forest products 460.50 + 3.54 163.07 + 9.63 108.04 + 11.15 359.92 + 0.72
- ------------------------------------------------------------------------------------------------------------------------
151.13 + 7.36 Mining, diversifed 372.95 + 7.63 145.41 + 6.02 134.51 + 7.26 161.73 + 2.62
- ------------------------------------------------------------------------------------------------------------------------
113.05 + 5.76 Paper products 673.51 + 15.45 141.17 + 14.57 113.73 + 3.14 75.42 + 2.08
- ------------------------------------------------------------------------------------------------------------------------
143.01 + 0.27 Precious metals 250.15 + 5.26 144.50 - 3.51 206.16 - 1.01 98.14 - 10.29
- ------------------------------------------------------------------------------------------------------------------------
99.92 + 1.95 Steel 153.75 + 10.50 133.33 + 9.33 165.64 + 8.22 85.30 - 2.03
- ------------------------------------------------------------------------------------------------------------------------
183.33 + 7.31 Independent 1439.29 + 22.05 239.66 + 20.35 114.39 - 4.51 157.71 + 0.65
- ------------------------------------------------------------------------------------------------------------------------
213.60 + 6.77 Conglomerates 1493.29 + 22.05 239.66 + 20.35 116.13 - 4.25 239.19 - 0.17
- ------------------------------------------------------------------------------------------------------------------------
105.56 - 2.39 Overseas Trading 0.00 0.00 0.00 0.00 90.77 - 8.95 107.27 + 3.22
- ------------------------------------------------------------------------------------------------------------------------
222.23 + 6.53 Plantations 0.00 0.00 0.00 0.00 0.00 0.00 222.23 - 6.53
- ------------------------------------------------------------------------------------------------------------------------
158.45 + 6.60 Consumer, Cyclical 135.23 + 11.99 173.15 + 11.35 177.04 + 2.95 133.57 + 3.13
- ------------------------------------------------------------------------------------------------------------------------
252.92 + 13.58 Advertising 1427.73 + 24.13 250.07 + 24.13 253.36 - 8.65 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------
115.09 + 5.16 Airlines 535.15 + 20.07 165.33 + 20.24 201.25 + 12.34 70.83 - 1253
- ------------------------------------------------------------------------------------------------------------------------
111.52 + 1.59 Apparel 1351.57 + 0.32 153.36 + 0.32 124.24 + 7.62 84.94 - 0.12
- ------------------------------------------------------------------------------------------------------------------------
95.97 + 2.73 Clothing/Fabrics 373.54 + 7.51 127.06 + 7.51 125.71 + 4.31 86.90 + 0.66
- ------------------------------------------------------------------------------------------------------------------------
163.52 + 1.10 Footwear 2133.31 + 4.01 210.44 + 4.01 98.10 + 17.73 57.42 - 15.27
- ------------------------------------------------------------------------------------------------------------------------
203.06 + 7.05 Auto manufacturers 544.37 + 6.70 256.63 + 6.70 170.13 + 15.93 202.41 + 2.23
- ------------------------------------------------------------------------------------------------------------------------
170.37 + 4.91 Auto parts & equip 553.65 + 12.29 197.54 + 10.65 215.52 - 3.00 151.38 + 5.70
- ------------------------------------------------------------------------------------------------------------------------
191.49 + 14.02 Casinos 1434.13 - 6.71 244.19 - 6.71 150.73 - 4.57 225.86 - 21.60
- ---------------------------------------------------------------------------------- --------------------------------------
156.16 + 3.47 Home construction 701.21 + 5.59 161.10 + 5.59 107.32 - 3.67 161.16 - 4.25
- ------------------------------------------------------------------------------------------------------------------------
154.76 + 12.37 Home furnishings 453.41 + 15.31 131.54 + 14.14 151.13 + 3.40 149.78 + 13.00
- ------------------------------------------------------------------------------------------------------------------------
155.76 + 14.73 Consumer electronics 0.00 0.00 103.52 - 13.85 153.14 + 24.07 157.74 + 14.87
- ------------------------------------------------------------------------------------------------------------------------
153.10 + 6.36 Other furnishings 453.41 + 15.39 131.33 + 15.31 223.45 + 2.24 95.36 - 1.21
- ------------------------------------------------------------------------------------------------------------------------
141.31 + 2.01 Lodging 123.92 + 5.95 295.22 + 6.95 105.93 + 10.17 141.03 - 6.21
- ------------------------------------------------------------------------------------------------------------------------
191.61 + 2.10 Media 374.04 + 10.30 175.21 + 9.93 200.34 - 3.51 236.54 - 2.30
- ------------------------------------------------------------------------------------------------------------------------
133.59 + 3.77 Cable/Broadcasting 333.44 + 3.27 159.25 + 9.65 198.62 - 2.43 294.27 + 10.89
- ------------------------------------------------------------------------------------------------------------------------
194.34 + 1.31 Publishing 611.76 + 11.75 179.53 + 9.73 198.73 - 4.05 223.33 - 6.11
- ------------------------------------------------------------------------------------------------------------------------
151.63 + 8.22 Recreation products 536.57 + 11.24 210.73 + 11.24 100.53 - 11.19 111.71 + 10.37
- ------------------------------------------------------------------------------------------------------------------------
153.40 + 4.06 Entertainment 331.59 + 10.54 156.82 + 10.54 151.77 - 13.77 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------
170.53 + 9.90 Other Rec Products 553.62 + 11.78 233.97 + 11.73 77.57 - 7.86 138.48 +11.85
- ------------------------------------------------------------------------------------------------------------------------
97.13 + 7.21 Toys 753.63 + 9.15 199.20 + 9.15 0.00 0.00 70.82 +5.49
- ------------------------------------------------------------------------------------------------------------------------
192.10 + 4.75 Restaurants 1141.17 + 5.34 197.75 + 6.93 114.50 - 14.50 107.63-1.03
- ------------------------------------------------------------------------------------------------------------------------
113.63 + 11.31 Retailers, apparel 1401.95 + 15.93 126.45 + 15.93 225.40 - 17.91 62.12 + 7.01
- ------------------------------------------------------------------------------------------------------------------------
125.50 + 12.99 Retailers, broadline 925.50 + 19.43 123.59 + 19.40 151.20 + 4.43 115.23 + 8.79
- ------------------------------------------------------------------------------------------------------------------------
223.07 + 13.31 Retailers, drug-based 1641.93 + 14.02 305.67 + 14.02 143.52 + 11.01 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------
140.93 + 9.01 Retailers, specialty 565.27 + 17.46 148.62 + 17.31 172.58 + 6.11 145.98 +1.43
- ------------------------------------------------------------------------------------------------------------------------
173.11 + 13.86 Consumer, Non-cycl 1527.13 + 18.53 191.23 + 18.34 172.25 + 7.79 120.25 +7.86
- ------------------------------------------------------------------------------------------------------------------------
113.95 + 2.53 Beverages , distillers 823.15 + 3.43 139.53 + 6.05 113.95 - 0.33 103.56 +3.63
- ------------------------------------------------------------------------------------------------------------------------
256.93 + 27.16 Beverages, soft drinks3,207.83 + 25.42 297.99 + 23.71 0.00 0.00 160.63 -1.51
- ------------------------------------------------------------------------------------------------------------------------
170.06 + 13.61 Consumer services 311.00 + 15.95 166.56 + 14.03 0.00 0.00 194.96 +8.66
- ------------------------------------------------------------------------------------------------------------------------
227.91 + 9.09 Cosmetics 1753.95 + 12.53 253.51 + 12.63 275.06 - 3.94 135.13 +20.38
- ------------------------------------------------------------------------------------------------------------------------
129.03 + 7.30 Food 1414.53 + 10.04 140.50 + 9.58 145.50 + 7.33 86.36 - 0.50
- ------------------------------------------------------------------------------------------------------------------------
54.20 - 14.37 Fishing 0.00 0.00 0.00 0.00 0.00 0.00 54.20 - 14.87
- ------------------------------------------------------------------------------------------------------------------------
130.21 + 7.43 Other food 1414.53 + 10.04 140.50 + 9.53 145.50 + 7.33 33.95 - 0.10
- ------------------------------------------------------------------------------------------------------------------------
164.04 + 6.12 Food retailers 1002.97 + 4.25 147.07 + 7.19 193.25 - 0.25 143.18 + 21.75
- ------------------------------------------------------------------------------------------------------------------------
212.75 + 3.10 Health care 980.69 + 8.05 274.10 + 8.10 0.00 0.00 0.00 0.00
- ------------------------------------------------------------------------------------------------------------------------
229.25 + 20.04 Household products 1992.50 + 21.77 251.75 + 21.25 117.07 + 13.85 76.33 - 5.70
- ------------------------------------------------------------------------------------------------------------------------
112.33 + 5.76 Durable 1257.24 + 3.15 131.02 + 8.15 0.00 0.00 71.23 - 3.13
- ------------------------------------------------------------------------------------------------------------------------
257.97 + 21.85 Non-durable 2033.01 + 23.24 274.56 + 22.54 117.07 + 13.85 88.50 - 10.53
- ------------------------------------------------------------------------------------------------------------------------
172.65 + 14.06 Medical supplies 1037.64 + 16.83 179.33 + 16.33 151.35 - 9.31 163.07 + 9.04
- ------------------------------------------------------------------------------------------------------------------------
153.41 + 13.05 Pharmaceuticals 1431.03 + 22.92 153.97 + 22.91 132.07 + 13.73 134.94 + 11.43
- ------------------------------------------------------------------------------------------------------------------------
119.44 + 11.47 Tobacco 1522.33 + 14.05 154.91 + 14.03 147.42 + 4.44 108.35 + 3.64
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
177.43 / 3.57 Energy 433.59 / 11.65 134.34 + 11.16 132.75 + 6.83 87.16 - 1.18
- --------------------------------------------------------------------------------------------------------------------------
96.73 - 5.29 Coal 330.21 + 4.42 139.93 + 4.42 0.00 0.00 63.15 - 15.91
- --------------------------------------------------------------------------------------------------------------------------
361.74 / 7.14 Oil drilling 321.40 + 6.37 430.81 + 6.37 127.82 + 12.67 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
131.52 + 11.62 Oil cos, major 519.23 + 14.30 134.32 + 14.03 200.37 + 3.71 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
126.66 - 0.23 Oil cos, secondary 240.25 - 4.25 145.25 - 1.09 149.19 + 0.15 88.65 - 0.30
- --------------------------------------------------------------------------------------------------------------------------
195.17 / 16.25 Oilfield equip/svcs 276.53 + 17.62 197.59 + 17.52 244.44 + 7.14 47.52 - 40.61
- --------------------------------------------------------------------------------------------------------------------------
225.15 / 5.04 Pipelines 156.63 + 4.11 226.48 + 5.04 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
134.02 / 7.93 Financial 342.23 + 15.36 263.15 + 16.41 175.77 + 13.30 91.30 - 5.71
- --------------------------------------------------------------------------------------------------------------------------
140.33 / 5.66 Banks, all 530.53 + 13.36 236.16 + 14.31 190.34 + 16.24 83.79 - 7.39
- --------------------------------------------------------------------------------------------------------------------------
125.53 / 4.20 Major int'l 530.53 + 10.72 232.36 + 12.54 153.21 + 17.46 83.42 - 6.30
- --------------------------------------------------------------------------------------------------------------------------
156.53 / 7.21 Regional banks 1037.47 + 15.44 253.62 + 15.44 192.21 + 14.56 80.29 - 8.29
- --------------------------------------------------------------------------------------------------------------------------
0.00 0.00 U.S. east 341.56 / 13.35 0.00 0.00 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
0.00 0.00 U.S. central 1385.11 / 14.89 0.00 0.00 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
0.00 0.00 U.S. south 573.20 / 15.55 0.00 0.00 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
0.00 0.00 U.S. west 1244.43 / 6.70 0.00 0.00 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
211.43 / 15.44 Diversified financial 1094.35 / 20.15 273.19 + 19.43 175.82 + 14.63 103.35 - 0.15
- --------------------------------------------------------------------------------------------------------------------------
150.44 / 13.15 Insurance, all 900.47 / 15.06 236.63 + 13.02 167.35 + 9.21 83.10 + 11.01
- --------------------------------------------------------------------------------------------------------------------------
173.31 / 11.40 Full line 539.72 / 15.09 242.05 + 17.32 155.07 + 10.10 201.57 + 4.54
- --------------------------------------------------------------------------------------------------------------------------
196.74 / 11.93 Life 1229.53 / 15.49 219.30 + 15.49 159.41 + 13.62 469.38 - 13.04
- --------------------------------------------------------------------------------------------------------------------------
173.40 / 3.73 Property/Casualty 1155.42 / 13.10 241.09 + 19.10 155.32 + 2.53 77.24 + 13.13
- --------------------------------------------------------------------------------------------------------------------------
145.40 / 3.73 Real estate 515.43 / 1.38 75.74 + 1.17 113.38 + 9.47 166.01 + 2.50
- --------------------------------------------------------------------------------------------------------------------------
222.45 / 32.11 Savings & loan 953.31 / 32.11 222.46 + 32.11 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
135.53 - 1.57 Securities brokers 1315.40 + 23.57 272.57 + 23.57 216.68 + 7.27 85.72 - 19.93
- --------------------------------------------------------------------------------------------------------------------------
123.38 / 4.97 Industrial 545.32 + 5.70 163.91 + 10.93 155.48 + 3.02 96.17 + 0.53
- --------------------------------------------------------------------------------------------------------------------------
203.03 / 12.33 Air Freight 450.36 + 13.53 230.31 + 13.63 30.20 - 13.14 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
113.52 / 1.56 Building Materials 731.50 / 5.70 133.86 + 6.18 123.73 + 1.15 93.91 - 0.06
- --------------------------------------------------------------------------------------------------------------------------
109.30 / 1.37 Containers & pkging 1047.41 + 11.57 151.19 + 11.56 86.46 - 10.88 82.89 - 6.56
- --------------------------------------------------------------------------------------------------------------------------
149.53 / 3.34 Elec comps & equip 626.37 / 3.06 173.53 + 3.06 258.30 + 2.34 122.36 + 11.97
- --------------------------------------------------------------------------------------------------------------------------
102.79 / 11.47 Factory equipment 403.00 / 13.36 127.98 + 18.36 124.67 / 11.77 93.36 + 10.52
- --------------------------------------------------------------------------------------------------------------------------
63.30 - 11.53 Heavy construction 342.46 - 3.83 118.30 - 3.52 100.60 + 2.23 55.53 - 18.91
- --------------------------------------------------------------------------------------------------------------------------
152.25 / 9.16 Heavy machinery 522.17 / 22.09 359.86 / 22.09 37.23 + 13.81 90.35 - 7.58
- --------------------------------------------------------------------------------------------------------------------------
155.77 / 6.46 Industrial, diversified 715.13 / 14.56 213.10 + 14.90 211.99 + 1.23 119.83 - 3.37
- --------------------------------------------------------------------------------------------------------------------------
109.77 / 4.79 Marine transport 519.37 / 2.03 130.45 + 2.08 154.55 + 17.73 74.64 - 7.48
- --------------------------------------------------------------------------------------------------------------------------
96.73 / 4.45 Pollution control 740.38 / 3.76 84.82 + 3.75 122.34 + 0.90 122.30 / 20.53
- --------------------------------------------------------------------------------------------------------------------------
155.51 / 6.93 Other industrial svcs 543.77 / 7.27 152.73 + 7.30 188.92 / 3.33 136.40 / 8.24
- --------------------------------------------------------------------------------------------------------------------------
127.17 / 3.25 Railroads 972.03 / 10.95 205.43 + 10.95 16.22 - 18.10 102.00 + 6.77
- --------------------------------------------------------------------------------------------------------------------------
125.53 / 5.92 Transportation equip 450.02 / 24.07 199.54 + 24.07 240.61 + 13.16 73.97 - 10.99
- --------------------------------------------------------------------------------------------------------------------------
97.79 / 5.13 Trucking 250.93 / 21.73 94.90 + 25.53 58.86 - 23.72 102.39 + 9.43
- --------------------------------------------------------------------------------------------------------------------------
223.55 / 16.02 Technology 346.48 / 15.87 276.09 + 16.91 195.11 + 13.22 151.12 + 18.19
- --------------------------------------------------------------------------------------------------------------------------
253.19 - 0.06 Aerospace/Defense 1291.22 / 1.12 315.83 + 1.99 232.43 - 7.98 72.41 - 4.27
- --------------------------------------------------------------------------------------------------------------------------
155.50 / 15.58 Communications tech 538.10 + 11.95 213.49 + 14.92 183.19 + 13.23 119.85 + 12.66
- --------------------------------------------------------------------------------------------------------------------------
217.12 / 16.79 Computers w/IBM 424.57 + 15.35 239.51 + 16.40 22.35 - 17.39 147.49 + 22.04
- --------------------------------------------------------------------------------------------------------------------------
0.00 0.00 Computers wo/IBM 729.83 + 17.45 0.00 0.00 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
190.54 / 11.14 Diversified technology 668.63 + 13.54 234.30 + 13.54 205.76 + 12.10 132.99 + 22.04
- --------------------------------------------------------------------------------------------------------------------------
155.53 / 16.52 Industrial technology 122.95 + 5.03 137.83 + 5.03 207.54 - 24.41 168.13 + 26.66
- --------------------------------------------------------------------------------------------------------------------------
156.45 / 10.03 Medical/Bio tech 1595.55 + 10.95 168.25 + 10.45 222.37 + 11.14 71.45 - 13.43
- --------------------------------------------------------------------------------------------------------------------------
176.63 / 11.14 Adved Med Devices 1545.76 + 11.92 176.75 + 11.92 149.03 - 1.34 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
159.56 / 9.24 Biotechnology 1754.15 + 10.12 163.88 + 9.21 121.17 + 21.50 71.45 - 13.43
- --------------------------------------------------------------------------------------------------------------------------
213.60 / 20.12 Office equipment 749.81 + 23.79 259.92 + 23.79 227.67 + 21.10 183.14 + 13.10
- --------------------------------------------------------------------------------------------------------------------------
600.72 / 29.34 Semiconductors 2709.40 + 21.53 915.12 + 21.53 0.00 0.00 253.83 + 46.64
- --------------------------------------------------------------------------------------------------------------------------
329.36 / 22.52 Software 8765.34 / 22.27 363.93 + 22.06 149.83 + 33.43 99.75 + 6.41
- --------------------------------------------------------------------------------------------------------------------------
127.45 / 2.26 Utilities 367.87 / 2.23 128.12 + 3.22 130.33 + 6.51 94.93 - 2.83
- --------------------------------------------------------------------------------------------------------------------------
105.91 - 3.93 Electric 237.23 - 4.00 98.15 - 3.95 231.73 + 0.48 85.83 - 7.27
- --------------------------------------------------------------------------------------------------------------------------
95.70 / 0.95 Gas 231.15 + 0.77 144.91 + 1.31 119.16 + 1.56 72.49 - 0.83
- --------------------------------------------------------------------------------------------------------------------------
161.92 / 7.13 Telephone 573.38 + 5.98 151.92 + 7.17 192.01 + 10.37 203.21 + 1.03
- --------------------------------------------------------------------------------------------------------------------------
146.99 / 3.97 Water 536.14 + 3.89 141.18 + 3.89 147.15 + 3.98 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
160.25 / 3.97 DJ Global Indexes 536.14 + 3.89 141.18 + 3.89 147.15 + 3.98 0.00 0.00
- --------------------------------------------------------------------------------------------------------------------------
Indexes based on 6/30/82=100 for U.S., 12/31/91=100 for World
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ANNEX II
--------
TO SCHEDULE A
-------------
INDEXES BEING LICENSED
----------------------
. Dow Jones Industrial Average
. Any four (total) of the Dow Jones Global Indexes listed on Annex I or
Annex III to Schedule A, as designated in writing by the Licensee within
six (6) months of the date hereof, subject to the approval in writing of
Dow Jones in its sole discretion (with such four indexes being, added to
this Annex II at such time or times as they are so designated and
approved)
<PAGE>
ANNEX III
---------
TO SCHEDULE A
-------------
RESERVED INDEXES*
-----------------
Licensee anticipates that it may want to issue, market, and promote
Products to be traded on Licensee based on the indexes set forth below. [iii]
[iii]
<PAGE>
SCHEDULE B
----------
PRODUCTS DESCRIPTION
--------------------
Exchange-traded open-end funds (including UITs) registered under the Investment
Company Act of 1940, traded open auction during the hours 9:30 AM to 4:15 PM
Eastern Time.
<PAGE>
SCHEDULE C
----------
LICENSE FEES
------------
Licensee shall pay license fees in accordance with the following:
. Licensee shall pay to Dow Jones an up-front one-time fee of [!!!]
to be paid on the date hereof.
. In addition, on the Commencement Date, and, during the Term, on each
anniversary of the Commencement Date, the Licensee will pay to Dow Jones
a flat annual minimum payment of [!!!] in respect of the twelve-
month period commencing on such anniversary date (each, an "Annual
-------
Minimum Payment").
----------------
. In addition, during each Year (defined below) of the Term, the Licensee
will provide to Dow Jones a written report (each, a "Monthly Report"),
-----------------
within 10 days after each month-end, which sets forth (i) the trading
volume for each Product during such month, specifying the number of round
lot trades for each Product, (ii) the daily asset balance for each
Product during such month, and (iii) a daily calculation of the Rolling
Average Asset Balance (defined below). Within 10 days after each
Quarter-end (defined below) during each Year of the Term, the Licensee
will pay (each, a "Quarterly Payment") to the Dow Jones affiliate
designated by Dow Jones (A) the amount, if any, by which (x) the sum of
the aggregate Per Transaction Amounts (defined below) in respect of such
quarter and all prior quarters in such Year plus the Basis Point Amount
(defined below) at such Quarter-end exceeds (y) the Annual Minimum
Payment paid in respect of such Year, minus (B) all Quarterly Payments
previously made in respect of any prior Quarter in such Year; provided,
--------
however, that no Quarterly Payment shall be made in respect of any
-------
Quarter for which the Basis Point Amount at such Quarter-end is lower
than the Basis Point Amount as at the end of the immediately preceding
Quarter. Within 10 days after each Year-end, Dow Jones shall reimburse to
the Licensee the amount, if any, by which the sum of all of the Quarterly
Payments made in respect of such Year exceeded the Excess Annual Amount.
[!!!]
[!!!]
<PAGE>
. In the event that this Agreement is terminated by Dow Jones pursuant to
Section 4(d), Dow Jones shall [!!!] on the date hereof pursuant to the
first paragraph of this Schedule C.
. [!!!]
. The terms hereof shall be deemed "Confidential Information" for purposes
of Section 7(b) of this Agreement.
. Definitions:
-----------
[!!!]
<PAGE>
"Quarter" means, with respect to any Year, the three-month period
-------
commencing on the first day of such Year.
"Year" means the twelve-month Commencement or any anniversary of the
---
Commencement Date.
<PAGE>
EXHIBIT I
---------
The [Products] are not sponsored, endorsed, sold or promoted by Dow
Jones. Dow Jones makes no representation or warranty, express or implied, to the
owners of the [Product(s)] or any member of the public regarding the
advisability of investing in securities generally or in the [Product(s)]
particularly. Dow Jones' only relationship to the Licensee is the licensing of
certain trademarks and trade names of Dow Jones and of the [INSERT Name of
Index(es)] which is determined, composed and calculated by Dow Jones without
regard to [the Licensee] or the [Product(s)], Dow Jones has no obligation to
take the needs of [the Licensee] or the owners of the [Product(s)] into
consideration in determining, composing or calculating [INSERT Name of
Index(es)]. Dow Jones is not responsible for and has a not participated in the
determination of the timing of, prices at, or quantities of the [Product(s)] to
be issued or in the determination or calculation of the equation by which the
[Product(s)] are to be converted into cash. Dow Jones has no obligation or
liability in connection with the administration, marketing or trading of the
[Product(s)].
DOW JONES DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF
THE [INSERT NAME OF INDEX(ES)] OR ANY DATA INCLUDED THEREIN AND DOW JONES SHALL
HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. DOW JONES
MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY [THE
LICENSEE], OWNERS OF THE [PRODUCT(S)], OR ANY OTHER PERSON OR ENTITY FROM THE
USE OF THE [INSERT NAME OF INDEX(ES)] OR ANY DATA INCLUDED THEREIN. DOW JONES
MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES,
OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO
THE [INSERT NAMES OF INDEX(ES)] OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING
ANY OF THE FOREGOING, IN NO EVENT SHALL DOW JONES HAVE ANY LIABILITY FOR ANY
LOST PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES (INCLUDING
LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. THERE ARE NO
THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN DOW JONES
AND [THE LICENSEE].
