Delaware
(State or other jurisdiction
of incorporation or organization)
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6211
(Primary Standard Industrial Classification Code Number)
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13-5674085
(I.R.S. Employer
Identification Number)
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Merrill Lynch, Pierce, Fenner & Smith Incorporated
One Bryant Park
New York, New York 10036
(212) 449-1000
Attn: Corporate Secretary
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
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Abigail Arms, Esq.
Shearman & Sterling LLP
801 Pennsylvania Avenue, NW, Suite 900
Washington, D.C. 20004
(202) 508-8000
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3
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4
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11
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19
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19
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21
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24
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28
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33
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33
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33
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33
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Loss of investment. Because the value of Internet Architecture HOLDRS directly relates to the value of the underlying securities, you may lose all or a substantial portion of your investment in the Internet Architecture HOLDRS if the underlying securities decline in value.
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Discount trading price. Internet Architecture HOLDRS may trade at a discount to the aggregate value of the underlying securities.
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Ownership of only fractional shares in the underlying securities. As a result of distributions of securities by companies included in the Internet Architecture HOLDRS or other corporate events, such as mergers, an Internet Architecture HOLDR may represent an interest in a fractional share of an underlying security. You will only be entitled to voting, distribution and other beneficial ownership rights in the underlying securities in which you own only fractional shares to the extent that the depositary aggregates your fractional shares with the other fractional shares of such underlying securities included in the Internet Architecture HOLDRS and passes on beneficial ownership rights, including distribution and voting rights, to you based on your proportional, fractional shares in the underlying securities. In addition, if you surrender your Internet Architecture HOLDRS to receive the underlying securities you will receive cash in lieu of your fractional shares. You will not be entitled to any securities if your interest in an underlying security is only a fraction of a share.
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Not necessarily representative of the Internet architecture business. At the time of the initial offering, on February 24, 2000, the companies included in the Internet Architecture HOLDRS were generally considered to be involved in various aspects of the Internet architecture business; however, since the time of the initial offering, the companies included in the Internet Architecture HOLDRS may not be involved in the Internet architecture business. In this case, the Internet Architecture HOLDRS may not consist of securities issued only by companies involved in the Internet architecture business. In addition, the market price of the underlying securities and the Internet Architecture HOLDRS may not necessarily follow the price movements of the entire Internet architecture business generally. If the underlying securities decline in value, your investment in the Internet Architecture HOLDRS will decline in value, even if common stock prices of companies involved in the Internet architecture business generally increase in value.
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Not necessarily comprised of solely Internet architecture companies. As a result of distributions of securities by companies included in the Internet Architecture HOLDRS or other corporate events, such as mergers, securities of companies that are not currently included in the Internet Architecture HOLDRS and that are not involved in the Internet architecture segment of the Internet industry may be included in the Internet Architecture HOLDRS. The securities of a new company will only be distributed from the Internet Architecture HOLDRS if the securities have a different Standard & Poor’s Corporation (“Standard & Poor’s”) sector classification than any of the underlying issuers included in Internet Architecture HOLDRS at the time of the distribution or the corporate event or if the securities are not listed for trading on a U.S. national securities exchange. As of January 2, 2002, Standard & Poor’s Corporation sector classifications are based upon the Standard & Poor’s Global Industry Classification Standard (“GICS”) sectors. As there are only 10 broadly defined GICS sector classifications, the use of GICS sectors to determine whether a new company will be included in, or whether the securities of a new company are distributed from, the Internet Architecture HOLDRS provides no assurance that each new company included in the Internet Architecture HOLDRS will be involved in the Internet architecture segment of the Internet industry. Currently, the underlying securities included in the
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Internet Architecture HOLDRS are represented in the Information Technology GICS sector. As each Standard & Poor’s GICS sector is defined very broadly, the securities of a new company could have the same GICS sector classification as a company currently included in the Internet Architecture HOLDRS yet not be involved in the Internet architecture segment of the Internet industry. In addition, the GICS sector classifications of securities included in the Internet Architecture HOLDRS may change over time if the companies that issued these securities change their focus of operations resulting in a change to a GICS sector classification or if Standard & Poor’s alters the criteria it uses to determine GICS sectors, or both. Therefore, additional GICS sectors may be represented in the Internet Architecture HOLDRS, which may also result in the inclusion in the Internet Architecture HOLDRS of the securities of a new company that is not involved in the Internet architecture segment of the Internet industry.
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No investigation of underlying securities. The underlying securities initially included in the Internet Architecture HOLDRS were selected by Merrill Lynch, Pierce, Fenner & Smith Incorporated based on the market capitalization of the issuers and the market liquidity of common stock in the Internet architecture business, without regard for the value, price performance, volatility or investment merit of the underlying securities. The Internet Architecture HOLDRS Trust, the trustee, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and each of their respective affiliates, have not performed, and will not in the future perform, any investigation or review of the selected companies, including the public filings by the companies. Investors and market participants should not conclude that the inclusion of a company is any form of investment recommendation by the trust, the trustee, Merrill Lynch, Pierce, Fenner & Smith Incorporated, or their respective affiliates.
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Loss of diversification. As a result of industry developments, reorganizations or market fluctuations affecting issuers of the underlying securities, Internet Architecture HOLDRS may not necessarily be a diversified investment in the Internet architecture business. In addition, reconstitution events, distributions of securities by an underlying issuer or other events, which may result in distributions of securities from, or the inclusion of additional securities in, the Internet Architecture HOLDRS, may also reduce diversification. As a result, Internet Architecture HOLDRS may represent a concentrated investment in one or more of the underlying securities, which would reduce investment diversification and increase your exposure to the risks of concentrated investments.
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Conflicting investment choices. In order to sell one or more of the underlying securities individually, participate in any form of stock repurchase program by an issuer of an underlying security, or participate in a tender offer relating to one or more of the underlying securities, you will be required to cancel your Internet Architecture HOLDRS and receive delivery of each of the underlying securities, including those underlying securities that you may not want to sell or are not subject to a tender offer or repurchase offer. The cancellation of your Internet Architecture HOLDRS will allow you to sell the individual underlying securities or to deliver the individual underlying securities in a tender offer or any form of stock repurchase program. The cancellation of Internet Architecture HOLDRS will involve payment of a cancellation fee to the trustee.
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Trading halts. Trading in Internet Architecture HOLDRS on the NYSE Arca may be halted if (i) the Internet Architecture HOLDRS has fewer than the required number of record and/or beneficial holders for 30 or more consecutive trading days; (ii) the number of Internet Architecture HOLDRS issued and outstanding falls below levels prescribed by the NYSE Arca; (iii) the market value of all Internet Architecture HOLDRS issued and outstanding falls below levels prescribed by the NYSE Arca; or (iv) any other event shall occur or conditions exists which, in the opinion of the NYSE Arca, makes further dealings on the NYSE Arca inadvisable. If trading is halted in Internet Architecture HOLDRS, you will not be able to trade Internet Architecture HOLDRS and you will only be able to trade the underlying securities if you cancel your Internet Architecture HOLDRS and receive each of the underlying securities.
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Delisting from the NYSE Arca. The NYSE Arca may consider delisting the Internet Architecture HOLDRS if (i) the Internet Architecture HOLDRS has fewer than the required number of record and/or beneficial holders for 30 or more consecutive trading days; (ii) the number of Internet Architecture HOLDRS issued and outstanding falls below levels prescribed by the NYSE Arca; (iii) the market value of all Internet Architecture HOLDRS issued and outstanding falls below levels prescribed by the NYSE Arca; or (iv) any other event shall occur or conditions exists which, in the opinion of the NYSE Arca, makes further listing of the Internet Architecture HOLDRS on the NYSE Arca inadvisable. If the Internet Architecture HOLDRS are delisted by the NYSE Arca, a termination event will result unless the Internet Architecture HOLDRS are listed for trading on another U.S. national securities exchange within five business days from the date the Internet Architecture HOLDRS are delisted.
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Possible conflicts of interest. Merrill Lynch, Pierce, Fenner & Smith Incorporated, as initial depositor, selected the underlying securities that were originally included in the Internet Architecture HOLDRS and may face possible conflicts of interest as Merrill Lynch, Pierce, Fenner & Smith Incorporated and its affiliates may engage in investment banking or may provide other services for issuers of the underlying securities in connection with its business.
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Delays in distributions. The depositary trust agreement provides that the trustee will use its reasonable efforts to distribute any cash or other distributions paid in respect of the underlying securities to you as soon as practicable after receipt of such distribution. You may, however, receive such cash or other distributions later than you would if you owned the underlying securities outside of the Internet Architecture HOLDRS. In addition, you will not be entitled to any interest on any distribution by reason of any delay in distribution by the depositary.
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The stock prices of companies involved in the Internet architecture business have been and will likely continue to be volatile, which will directly affect the price volatility of the Internet Architecture HOLDRS, and you could lose all or a substantial part of your investment. The trading prices of the stocks of Internet architecture companies included in the Internet Architecture HOLDRS have been volatile. These stock prices could be subject to wide fluctuations in response to a variety of factors, including the following:
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general market fluctuations;
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actual or anticipated variations in companies’ quarterly operating results;
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announcements of technological innovations or new services offered by competitors of the companies included in the Internet Architecture HOLDRS;
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changes in financial estimates by securities analysts;
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conditions or trends in Internet online service companies;
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conditions or trends in online securities trading;
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changes in the market valuations of the Internet or online service companies;
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developments in Internet regulations;
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legal or regulatory developments affecting companies included in the Internet Architecture HOLDRS or in the Internet architecture business;
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announcements by Internet architecture companies or their competitors of significant acquisitions, strategic partnerships, joint ventures or capital commitments;
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unscheduled system downtime;
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additions or departures of key personnel;
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sales of Internet architecture companies’ common stock or other securities in the open market; and
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difficulty in obtaining additional financing.
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Companies whose securities are included in the Internet Architecture HOLDRS may need additional financing, which may be difficult to obtain. Failure to obtain necessary financing or doing so on unattractive terms could adversely affect development and marketing efforts and other operations of companies whose securities are included in the Internet Architecture HOLDRS. Companies whose securities are included in Internet Architecture HOLDRS may need to raise additional capital in order to fund the continued development and marketing of their products or to fund strategic acquisitions or investments. Their ability to obtain additional financing will depend on a number of factors, including market conditions, operating performance and investor interest. These factors may make the timing, amount, terms and conditions of any financing unattractive. If adequate funds are not available or are not available on acceptable terms, companies whose securities are included in the Internet Architecture HOLDRS may have to forego strategic acquisitions or investments, reduce or defer their development activities, delay their introduction of new products and services or terminate their operations completely. Any of these actions may reduce the market price of stocks in the Internet architecture business.
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Internet architecture companies must keep pace with rapid technological change to remain competitive. The Internet market is characterized by rapidly changing technology, evolving industry standards and practices, frequent new product and service introductions and enhancements and changing customer demands. Internet architecture companies’ success therefore will depend on their ability to adapt to rapidly changing technologies, to adapt their services to evolving industry standards and to continually improve the performance, features and reliability of their products. Failure to adapt to such changes would harm their business. In addition, the widespread adoption of new Internet, networking or telecommunications technologies or other technological changes could require substantial expenditures to modify or adapt their services or infrastructure. The online commerce market, particularly over the Internet,
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is rapidly evolving and intensely competitive, and this competition is expected to intensify in the future. Barriers to entry are minimal, and companies can launch new sites and services at a relatively low cost.
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The ability to maintain or increase market share depends on timely introduction and market acceptance of new products offered by Internet architecture companies. The Internet market is characterized by rapidly changing technology, evolving industry standards and practices, frequent new product and service introductions and enhancements and changing customer demands. The success of many Internet architecture companies will depend on their ability to adapt to rapidly changing technologies, to adapt their services to evolving industry standards and to continually improve the performance, features and reliability of their hardware and software products. They must quickly develop, introduce and deliver their products, or incur the risk that their competitors will introduce the same or similar products, or products which could make their product obsolete. In addition, the widespread adoption of new Internet, networking or telecommunications technologies or other technological changes could require substantial expenditures to modify or adapt the existing products offered by Internet architecture companies. Many Internet architecture companies may not successfully introduce new products, develop and maintain a loyal customer base or achieve general market acceptance for their products, and failure to do so could have a material adverse effect on their business, results of operations and financial condition.
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New laws and regulations with respect to the Internet could impede its commercial development and adversely affect the business of many Internet architecture companies. Due to the popularity and widespread use of the Internet and other online services, it is possible that a number of laws and regulations may be adopted with respect to the Internet or other online services covering issues such as user privacy, pricing, content, copyrights, distribution and characteristics and quality of products and services that may adversely affect the business of Internet architecture companies. In addition, many Internet architecture companies develop products which interact with or incorporate telecommunications infrastructure which may be subject to regulation by the Federal Communications Commission. Furthermore, the growth and development of the market for online interaction and commerce may prompt calls for more stringent consumer protection laws that may impose additional burdens on companies conducting business online. The adoption of any additional laws or regulations may impede the growth of the Internet or other online services, which could have a material adverse effect on the business, results of operations and financial condition of Internet architecture companies.
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Some of the companies involved in the Internet architecture business are also engaged in other lines of business unrelated to Internet architecture, and they may experience problems with these lines of business which could adversely affect their operating results. Several of the companies that comprise the Internet Architecture HOLDRS have lines of business that do not relate to Internet architecture and that may present additional risks not mentioned in this prospectus and operating results of such companies may fluctuate as a result of these additional risks and events in the industries of these other lines of business. There can be no assurance that, despite a company’s possible success in the Internet architecture business, the other lines of business in which these companies are engaged will not have an adverse effect on the company’s business or financial conditions.
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Failure to integrate acquisitions could disrupt operations and prevent the realization of intended benefits. Various Internet architecture companies are active acquirers of other companies as part of their business plans. There can be no assurance that Internet architecture companies will be able to integrate these acquired companies, which may result in failure to realize expected cost savings, increases in revenue and other projected benefits from such integration. There can also no be no assurance that Internet architecture companies will be able to attract and retain qualified personnel from acquired businesses or be successful in integrating such personnel. Further, Internet architecture companies may suffer material adverse short and long-term effects on operating results and financial condition as a result of such acquisitions.
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The international operations of many Internet architecture companies expose them to risks associated with instability and changes in economic, legal and political conditions, foreign currency fluctuations, changes in foreign regulations and other risks inherent to international business. Many Internet architecture companies have international operations and derive substantial revenue from international sales. The risks of international business that the companies are exposed to include the following:
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volatility in general economic, social and political conditions;
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the difficulty of enforcing intellectual property rights, agreements and collecting receivables through certain foreign legal systems;
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differing tax rates, tariffs, exchange controls or other similar restrictions;
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currency fluctuations; and
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changes in, and compliance with, domestic and foreign laws and regulations which impose a range of restrictions on operations, trade practices, foreign trade and international investment decisions.
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Many Internet architecture companies rely on a single supplier or a limited number of suppliers for the components used in their products and if quality components are not delivered on a timely basis, these companies will not be able to deliver their products on a timely schedule which could adversely affect their financial condition. Reliance on a single supplier or limited number of suppliers subjects many Internet architecture companies to risks of delivery delays, price increases, receipt of non-conforming or poor quality components and inability to obtain long-term supplies of components. Any reduction or interruption in these third parties’ supply or manufacturing would adversely affect an Internet architecture company’s ability to deliver its products and meet customer needs. There can be no assurance that Internet architecture companies will not encounter problems with suppliers, which may harm their reputation and adversely affect their operations and financial condition.
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Unanticipated high inventory levels could increase the costs of many Internet architecture companies. Many Internet architecture companies maintain medium to high levels of inventory and a decrease in market demand or an increase in supply, among other factors, could result in higher inventory levels which could adversely affect the profitability of these Internet architecture companies.
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Many Internet architecture companies are dependent on their ability to continue to attract and retain highly-skilled technical and managerial personnel to develop and generate their business. The success of many Internet architecture companies is highly dependent on the experience, abilities and continued services of key executive officers and key technical personnel. If these companies lose the services of any of these officers or key technical personnel, their future success could be undermined. Competition for personnel has been and may continue to be intense. There is no certainty that any of these Internet architecture companies will be able to continue to attract and retain qualified personnel.
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Some companies included in the Internet Architecture HOLDRS are exposed to the credit risk of their distributors and customers. The portion of the sales of some companies included in the Internet Architecture HOLDRS are made through third parties, such as distributors and resellers. Many of these third parties have extended credit from, and participate in cooperative sales strategies paid for by companies included in the Internet Architecture HOLDRS. Also, some of the sales made to customers are made through financing arrangements. However, many of these third parties and customers have limited financial resources and, as a result, represent an increased credit risk. In addition, it is expected that third parties and customers will continue to require this type of financing and Internet architecture companies will have to continue to extend this type of credit to maintain the distribution of their products and their market share. Further, these third
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parties and customers have been, and may continue to be, affected by the decline in financial prospects of Internet-related companies generally. Losses relating to this type of credit could harm the business of companies included in the Internet Architecture HOLDRS and have a material adverse effect on results of operations.
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Issuer
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Internet Architecture HOLDRS Trust.
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The trust
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The Internet Architecture HOLDRS Trust was formed under the depositary trust agreement, dated as of February 18, 2000, among The Bank of New York Mellon, as trustee, Merrill Lynch, Pierce, Fenner & Smith Incorporated, other depositors and the owners of the Internet Architecture HOLDRS. The depositary trust agreement was amended on November 22, 2000. The trust is not a registered investment company under the Investment Company Act of 1940.
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Initial depositor
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Merrill Lynch, Pierce, Fenner & Smith Incorporated.
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Trustee
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The Bank of New York Mellon, a New York state-chartered banking organization, is the trustee and receives compensation as set forth in the depositary trust agreement. The trustee is responsible for receiving deposits of underlying securities and delivering Internet Architecture HOLDRS representing the underlying securities issued by the trust. The trustee holds the underlying securities on behalf of the holders of Internet Architecture HOLDRS.
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Purpose of Internet Architecture HOLDRS
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Internet Architecture HOLDRS were designed to achieve the following:
Diversification. Internet Architecture HOLDRS were initially designed to allow you to diversify your investments in the Internet architecture business through a single, exchange-listed instrument representing your undivided beneficial ownership of the underlying securities. See “Risk Factors—General Risk Factors.”
Flexibility. The beneficial owners of Internet Architecture HOLDRS have undivided beneficial ownership interests in each of the underlying securities represented by the Internet Architecture HOLDRS, and can cancel their Internet Architecture HOLDRS to receive each of the underlying securities represented by the Internet Architecture HOLDRS.
Transaction costs. The expenses associated with buying and selling Internet Architecture HOLDRS in the secondary market are expected to be less than separately buying and selling each of the underlying securities in a traditional brokerage account with transaction-based charges.
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Trust assets
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The trust holds shares of common stock issued by specified companies that, when initially selected, were involved in the Internet architecture business. Except when a reconstitution event, distribution of securities by an underlying issuer or other event occurs, the underlying securities will not change and the securities of a new company will not be added to the securities underlying the Internet Architecture HOLDRS. Reconstitution
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events are described in this prospectus under the heading “Description of the Depositary Trust Agreement—Distributions” and “—Reconstitution events.”
The trust’s assets may increase or decrease as a result of in-kind deposits and withdrawals of the underlying securities during the life of the trust.
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The Internet Architecture HOLDRS
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The trust has issued, and may continue to issue, Internet Architecture HOLDRS that represent an undivided beneficial ownership interest in the shares of common stock that are held by the trust on your behalf. The Internet Architecture HOLDRS themselves are separate from the underlying securities that are represented by the Internet Architecture HOLDRS.
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The following table provides: |
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the names of the issuers of the underlying securities currently represented by an Internet Architecture HOLDR, | |
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the stock ticker symbols, | |
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the share amounts currently represented by a round-lot of 100 Internet Architecture HOLDRS, and | |
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the primary U.S. market on which the securities of the selected companies are traded. |
Name of Company(1)(2)
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Ticker
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Share
Amounts
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Primary
Trading
Market
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Apple Inc.
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AAPL
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4.0000 |
NASDAQ GS
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Brocade Communications Systems, Inc.
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BRCD
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0.4417 |
NASDAQ GS
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Ciena Corporation
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CIEN
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0.2857 |
NASDAQ GS
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Cisco Systems, Inc.
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CSCO
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26.0000 |
NASDAQ GS
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Dell Inc.
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DELL
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19.0000 |
NASDAQ GS
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EMC Corporation
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EMC
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16.0000 |
NYSE
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Extreme Networks, Inc.
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EXTR
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2.0000 |
NASDAQ GM
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Hewlett-Packard Company
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HPQ
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22.2225 |
NYSE
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International Business Machines Corporation
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IBM
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13.0000 |
NYSE
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Juniper Networks, Inc.
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JNPR
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2.0000 |
NYSE
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NetApp, Inc.
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NTAP
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2.0000 |
NASDAQ GS
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Sycamore Networks, Inc.
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SCMR
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0.2000 |
NASDAQ GS
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Symantec Corporation
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SYMC
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1.0039 |
NASDAQ GS
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Unisys Corporation
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UIS
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0.2000 |
NYSE
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The companies whose common stock were initially included in the Internet Architecture HOLDRS at the time Internet Architecture HOLDRS were originally issued on February 24, 2000 were generally considered to be among the largest and most liquid companies involved in the Internet architecture business as measured by market capitalization and trading volume on February 7, 2000. The market capitalization of a company is determined by multiplying the market price of its common stock by the number of outstanding shares of its common stock.
The trust will only issue and cancel, and you may only obtain, hold, trade or surrender, Internet Architecture HOLDRS in a round-lot of 100 Internet Architecture HOLDRS and round-lot multiples. The trust will only issue Internet Architecture HOLDRS upon the deposit of the whole shares represented by a round-lot of 100 Internet Architecture HOLDRS. In the event that a fractional share comes to be represented by a round-lot of Internet Architecture HOLDRS, the trust may require a minimum of more than one round-lot of 100 Internet Architecture HOLDRS for an issuance so that the trust will always receive whole share amounts for issuance of Internet Architecture HOLDRS.
The number of outstanding Internet Architecture HOLDRS will increase and decrease as a result of in-kind deposits and withdrawals of the underlying securities. The trust will stand ready to issue additional Internet Architecture HOLDRS on a continuous basis when an investor deposits the required number of shares of common stock with the trustee.
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Purchases
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You may acquire Internet Architecture HOLDRS in two ways:
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through an in-kind deposit of the required number of shares of common stock of the underlying issuers with the trustee; or | |
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through a cash purchase in the secondary trading market. |
Issuance and cancellation fees
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If you wish to create Internet Architecture HOLDRS by delivering to the trust the requisite shares of common stock represented by a round-lot of 100 Internet Architecture HOLDRS, The Bank of New York Mellon, as trustee, will charge you an issuance fee of up to $10.00 for each round-lot of 100 Internet Architecture HOLDRS. If you wish to cancel your Internet Architecture HOLDRS and withdraw your underlying securities, The Bank of New York Mellon, as trustee, will charge you a cancellation fee of up to $10.00 for each round-lot of 100 Internet Architecture HOLDRS.
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Commissions
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If you choose to deposit underlying securities in order to receive Internet Architecture HOLDRS, you will be responsible for paying any sales commission associated with your purchase of the underlying securities that is charged by your broker in addition to the issuance fee charged by the trustee that is
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described above. | |
Custody fees
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The Bank of New York Mellon, as trustee and as custodian, will charge you a quarterly custody fee of $2.00 for each round-lot of 100 Internet Architecture HOLDRS, to be deducted from any cash dividend or other cash distributions on underlying securities received by the trustee. With respect to the aggregate custody fee payable in any calendar year for each Internet Architecture HOLDR, the trustee will waive that portion of the fee which exceeds the total cash dividends and other cash distributions received, or to be received, and payable with respect to such calendar year.
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Rights relating to Internet Architecture HOLDRS
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You have the right to withdraw the underlying securities upon request by delivering a round-lot or integral multiple of a round-lot of Internet Architecture HOLDRS to the trustee, during the trustee’s business hours, and paying the cancellation fees, taxes and other charges. You should receive the underlying securities no later than the business day after the trustee receives a proper notice of cancellation. The trustee will not deliver fractional shares of underlying securities. To the extent that any cancellation of Internet Architecture HOLDRS would otherwise require the delivery of a fractional share, the trustee will sell the fractional share in the market and the trust, in turn, will deliver cash in lieu of such fractional share. Except with respect to the right to vote for dissolution of the trust, the Internet Architecture HOLDRS themselves will not have voting rights.
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Rights relating to the underlying securities |
Internet Architecture HOLDRS represents your beneficial ownership of the underlying securities. Owners of Internet Architecture HOLDRS have the same rights and privileges as if they beneficially owned the underlying securities in “street name” outside of Internet Architecture HOLDRS. These include the right to instruct the trustee to vote the underlying securities or attend shareholder meetings yourself, the right to receive any dividends and other distributions on the underlying securities that are declared and paid to the trustee by an issuer of an underlying security, the right to pledge Internet Architecture HOLDRS and the right to surrender Internet Architecture HOLDRS to receive the underlying securities. See “Description of the Depositary Trust Agreement.” Internet Architecture HOLDRS does not change your beneficial ownership in the underlying securities under United States federal securities laws, including sections 13(d) and 16(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). As a result, you have the same obligations to file insider trading reports that you would have if you held the underlying securities outside of Internet Architecture HOLDRS. However, due to the nature of Internet Architecture HOLDRS, you will not be able to participate in any dividend reinvestment program of an issuer of underlying securities unless you cancel your Internet Architecture HOLDRS (and pay the applicable fees) and receive all of the underlying securities.
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A holder of Internet Architecture HOLDRS is not a registered owner of the underlying securities. In order to become a |
registered owner, a holder of Internet Architecture HOLDRS would need to surrender their Internet Architecture HOLDRS, pay the applicable fees and expenses, receive all of the underlying securities and follow the procedures established by the issuers of the underlying securities for registering their securities in the name of such holder. You retain the right to receive any reports and communications that the issuers of underlying securities are required to send to beneficial owners of their securities. As such, you will receive such reports and communications from the broker through which you hold your Internet Architecture HOLDRS in the same manner as if you beneficially owned your underlying securities outside of Internet Architecture HOLDRS in “street name” through a brokerage account. The trustee will not attempt to exercise the right to vote that attaches to, or give a proxy with respect to, the underlying securities other than in accordance with your instructions.
The depositary trust agreement entitles you to receive, subject to certain limitations and net of any fees and expenses of the trustee, any distributions of cash (including dividends), securities or property made with respect to the underlying securities. However, any distribution of securities by an issuer of underlying securities will be deposited into the trust and will become part of the underlying securities unless the distributed securities are not listed for trading on a U.S. national securities exchange or the distributed securities have a Standard & Poor’s GICS sector classification that is different from the GICS sector classifications represented by the companies included in the Internet Architecture HOLDRS at the time of the distribution. In addition, if the issuer of underlying securities offers rights to acquire additional underlying securities or other securities, the rights may be distributed to you, and may be disposed of for your benefit or may lapse.
There may be a delay between the time any cash or other distribution is received by the trustee with respect to the underlying securities and the time such cash or other distributions are distributed to you. In addition, you are not entitled to any interest on any distribution by reason of any delay in distribution by the trustee. If any tax or other governmental charge becomes due with respect to Internet Architecture HOLDRS or any underlying securities, you will be responsible for paying that tax or governmental charge.
If you wish to participate in a tender offer for any of the underlying securities or any form of stock repurchase plan by an issuer of an underlying security, you must surrender your Internet Architecture HOLDRS (and pay the applicable fees and expenses) and receive all of your underlying securities in exchange for your Internet Architecture HOLDRS, including those underlying securities not subject to a tender offer or repurchase offer. For specific information about obtaining your underlying securities, you should read the discussion under the caption “Description of the Depositary Trust Agreement—Withdrawal of underlying securities.”
|
Ownership rights in fractional shares in the underlying securities
|
As a result of distributions of securities by companies included in the Internet Architecture HOLDRS or other corporate events, such as mergers, an Internet Architecture HOLDR may represent an interest in a fractional share of an underlying security. You are entitled to receive distributions proportionate to your fractional shares.
In addition, you are entitled to receive proxy materials and other shareholder communications and you are entitled to exercise voting rights proportionate to your fractional shares. The trustee will aggregate the votes of all of the share fractions represented by Internet Architecture HOLDRS and will vote the largest possible number of whole shares. If, after aggregation, there is a fractional remainder, this fraction will be ignored, because the issuer will only recognize whole share votes. For example, if 100,001 round-lots of 100 Internet Architecture HOLDRS are outstanding and each round-lot of 100 Internet Architecture HOLDRS represents 1.75 shares of an underlying security, there will be 175,001.75 votes of the underlying security represented by Internet Architecture HOLDRS. If holders of 50,000 round-lots of 100 Internet Architecture HOLDRS vote their underlying securities “yes” and holders of 50,001 round-lots of 100 Internet Architecture HOLDRS vote their underlying securities “no,” there will be 87,500 affirmative votes and 87,501.75 negative votes. The trustee will ignore the .75 negative votes and will deliver to the issuer 87,500 affirmative votes and 87,501 negative votes.
|
Reconstitution events | The depositary trust agreement provides for the automatic distribution of underlying securities from the Internet Architecture HOLDRS to you in the following four circumstances: |
A. | If an issuer of underlying securities no longer has a class of securities registered under section 12 of the Exchange Act, then its securities will no longer be an underlying security and the trustee will distribute the shares of that company to the owners of the Internet Architecture HOLDRS. | |
B. | If the Securities and Exchange Commission (the “SEC”) finds that an issuer of underlying securities should be registered as an investment company under the Investment Company Act of 1940, and the trustee has actual knowledge of the SEC finding, then its securities will no longer be an underlying security and the trustee will distribute the shares of that company to the owners of the Internet Architecture HOLDRS. | |
C. | If the underlying securities of an issuer cease to be outstanding as a result of a merger, consolidation, corporate combination or other event, the trustee will distribute the consideration paid by and received from the acquiring company to the beneficial owners of Internet Architecture HOLDRS; provided that any securities received as consideration will be distributed only if the distributed securities have a different Standard & Poor’s GICS sector classification than any of the underlying securities |
represented in the Internet Architecture HOLDRS at the time of the distribution or exchange or if the securities received are not listed for trading on a U.S. national securities exchange. In any other case, the additional securities received as consideration will be deposited into the trust. | ||
D. | If an issuer’s underlying securities are delisted from trading on a U.S. national securities exchange and are not listed for trading on another national securities exchange within five business days from the date the securities are delisted. |
To the extent a distribution of underlying securities from the Internet Architecture HOLDRS is required as a result of a reconstitution event, the trustee will deliver the underlying security to you as promptly as practicable after the date that the trustee has knowledge of the occurrence of a reconstitution event.
In addition, securities of a new company will be added to the Internet Architecture HOLDRS, as a result of a distribution of securities by an underlying issuer, where a corporate event occurs, or where the securities of an underlying issuer are exchanged for the securities of another company, unless the securities have a Standard & Poor’s GICS sector classification that is different from the GICS sector classification of any other security then included in the Internet Architecture HOLDRS or if the securities received are not listed for trading on a U.S. national securities exchange.
It is anticipated that, as a result of the broadly defined Standard & Poor’s GICS sectors, most distributions or exchanges of securities will result in the inclusion of new securities in the Internet Architecture HOLDRS. The trustee will review the Standard & Poor’s GICS sector classifications of securities to determine whether securities received as a result of a distribution by an underlying issuer or as consideration for securities will be included in the Internet Architecture HOLDRS or distributed from the Internet Architecture HOLDRS to you.
|
|
Standard & Poor’s sector classifications
|
Standard & Poor’s Corporation is an independent source of market information that, among other things, maintains the Global Industry Classification Standard, which classifies the securities of public companies into various sector classifications based upon GICS sectors, which are derived from its own criteria. The GICS classification standards were effective as of January 2, 2002. There are 10 Standard & Poor’s GICS sector classifications and each class of publicly traded securities of a company is given only one GICS sector classification. The securities included in the Internet Architecture HOLDRS are currently represented in the Information Technology GICS sector. The Standard & Poor’s GICS sector classifications of the securities included in the Internet Architecture HOLDRS may change over time if the companies that issued these securities change their focus of operations or if Standard & Poor’s alters the criteria it uses to determine GICS sectors, or both.
|
Termination events
|
A. |
The Internet Architecture HOLDRS are delisted from the NYSE Arca and are not listed for trading on another U.S. national securities exchange within five business days from the date the Internet Architecture HOLDRS are delisted.
|
B. | The trustee resigns and no successor trustee is appointed within 60 days from the date the trustee provides notice to Merrill Lynch, Pierce, Fenner & Smith Incorporated, as initial depositor, of its intent to resign. | |
C. | Beneficial owners of at least 75% of outstanding Internet Architecture HOLDRS, other than Merrill Lynch, Pierce, Fenner & Smith Incorporated, vote to dissolve and liquidate the trust. |
If a termination event occurs, the trustee will distribute the underlying securities as promptly as practicable after the termination event. | |
Upon termination of the depositary trust agreement and prior to distributing the underlying securities to you, the trustee will charge you a cancellation fee of up to $10.00 per round-lot of 100 Internet Architecture HOLDRS surrendered, along with any taxes or other governmental charges, if any. | |
U.S. federal income tax consequences
|
The U.S. federal income tax laws will treat a U.S. receipt holder of Internet Architecture HOLDRS as directly owning the underlying securities. The Internet Architecture HOLDRS themselves will not result in any U.S. federal tax consequences separate from the tax consequences associated with ownership of the underlying securities. See “U.S. Federal Income Tax Consequences.”
|
Listing
|
The Internet Architecture HOLDRS are listed on the NYSE Arca under the symbol “IAH.”
|
Trading
|
Investors are only able to acquire, hold, transfer and surrender a round-lot of 100 Internet Architecture HOLDRS. Bid and ask prices, however, are quoted per single Internet Architecture HOLDRS.
|
Clearance and settlement
|
Internet Architecture HOLDRS have been issued only in book-entry form. Internet Architecture HOLDRS are evidenced by one or more global certificates that the trustee has deposited with The Depository Trust Company, referred to as DTC. Transfers within DTC will be in accordance with DTC’s usual rules and operating procedures. For further information see “Description of Internet Architecture HOLDRS.”
|
1999
|
Closing
Price |
2000
|
Closing
Price |
2001
|
Closing
Price |
2002
|
Closing
Price |
||||||||||||
November 30
|
62.77 |
January 31
|
72.36 |
January 31
|
65.30 |
January 31
|
37.28 | ||||||||||||
December 31
|
73.78 |
February 29
|
84.57 |
February 28
|
46.37 |
February 28
|
31.46 | ||||||||||||
March 31
|
90.74 |
March 30
|
40.53 |
March 28
|
33.37 | ||||||||||||||
April 28
|
85.66 |
April 30
|
46.17 |
April 30
|
29.24 | ||||||||||||||
May 31
|
74.59 |
May 31
|
44.11 |
May 31
|
28.81 | ||||||||||||||
June 30
|
89.23 |
June 29
|
43.04 |
June 28
|
25.44 | ||||||||||||||
July 31
|
90.70 |
July 31
|
39.70 |
July 31
|
24.13 | ||||||||||||||
August 31
|
104.07 |
August 31
|
34.10 |
August 30
|
24.92 | ||||||||||||||
September 29
|
91.65 |
September 28
|
27.65 |
September 30
|
19.89 | ||||||||||||||
October 31
|
83.71 |
October 31
|
33.56 |
October 31
|
24.99 | ||||||||||||||
November 30
|
64.73 |
November 30
|
39.52 |
November 29
|
28.84 | ||||||||||||||
December 29
|
57.03 |
December 31
|
38.11 |
December 31
|
25.54 |
2003
|
Closing
Price |
2004
|
Closing
Price |
2005
|
Closing
Price |
2006
|
Closing
Price |
||||||||||||
January 31
|
25.50 |
January 30
|
37.52 |
January 31
|
35.82 |
January 31
|
35.98 | ||||||||||||
February 28
|
25.90 |
February 27
|
36.05 |
February 28
|
35.50 |
February 28
|
36.35 | ||||||||||||
March 31
|
25.61 |
March 31
|
35.41 |
March 31
|
35.11 |
March 31
|
37.24 | ||||||||||||
April 30
|
27.92 |
April 30
|
33.01 |
April 29
|
31.69 |
April 28
|
36.48 | ||||||||||||
May 30
|
30.71 |
May 28
|
34.04 |
May 31
|
34.08 |
May 31
|
34.83 | ||||||||||||
June 30
|
30.55 |
June 30
|
34.66 |
June 30
|
33.70 |
June 30
|
33.63 | ||||||||||||
July 31
|
31.33 |
July 30
|
33.13 |
July 29
|
35.56 |
July 31
|
32.93 | ||||||||||||
August 29
|
31.55 |
August 31
|
31.60 |
August 31
|
34.51 |
August 31
|
36.18 | ||||||||||||
September 30
|
32.25 |
September 30
|
32.26 |
September 30
|
34.98 |
September 29
|
37.20 | ||||||||||||
October 31
|
34.59 |
October 29
|
33.69 |
October 31
|
34.76 |
October 31
|
39.92 | ||||||||||||
November 28
|
34.87 |
November 30
|
36.35 |
November 30
|
36.07 |
November 30
|
42.01 | ||||||||||||
December 31
|
35.51 |
December 31
|
37.70 |
December 30
|
35.00 |
December 29
|
42.49 |
2007
|
Closing
Price |
2008
|
Closing
Price |
2009
|
Closing
Price |
2010
|
Closing
Price |
||||||||||||
January 31
|
43.25 |
January 31
|
44.53 |
January 30
|
31.93 |
January 29
|
46.73 | ||||||||||||
February 28
|
41.00 |
February 29
|
45.64 |
February 27
|
30.26 |
February 26
|
49.46 | ||||||||||||
March 30
|
41.56 |
March 31
|
45.68 |
March 31
|
33.36 |
March 31
|
52.33 | ||||||||||||
April 30
|
44.09 |
April 30
|
48.24 |
April 30
|
37.56 |
April 30
|
53.59 | ||||||||||||
May 31
|
46.92 |
May 30
|
51.48 |
May 29
|
37.72 |
May 28
|
49.98 | ||||||||||||
June 29
|
47.29 |
June 30
|
46.64 |
June 30
|
39.38 |
June 30
|
48.05 | ||||||||||||
July 31
|
48.93 |
July 31
|
48.03 |
July 31
|
44.21 |
July 30
|
50.67 | ||||||||||||
August 31
|
51.82 |
August 29
|
48.08 |
August 31
|
45.25 |
August 31
|
46.32 | ||||||||||||
September 28
|
53.20 |
September 30
|
42.74 |
September 30
|
47.45 |
September 30
|
51.55 | ||||||||||||
October 31
|
56.27 |
October 31
|
35.07 |
October 30
|
47.23 |
October 29
|
54.21 | ||||||||||||
November 30
|
50.50 |
November 28
|
31.45 |
November 30
|
49.12 |
November 30
|
53.18 | ||||||||||||
December 31
|
50.85 |
December 31
|
31.53 |
December 31
|
51.13 |
December 31
|
55.08 |
2011
|
Closing
Price |
|
|
||||||||||||||||
January 31
|
59.03 |
|
|
|
|||||||||||||||
February 28
|
59.45 |
|
|
||||||||||||||||
|
A.
|
If an issuer of underlying securities no longer has a class of securities registered under section 12 of the Exchange Act, then its securities will no longer be an underlying security and the trustee will distribute the shares of that company to the owners of the Internet Architecture HOLDRS.
|
|
B.
|
If the SEC finds that an issuer of underlying securities should be registered as an investment company under the Investment Company Act of 1940, and the trustee has actual knowledge of the SEC finding, then the trustee will distribute the shares of that company to the owners of the Internet Architecture HOLDRS.
|
|
C.
|
If the underlying securities of an issuer cease to be outstanding as a result of a merger, consolidation, corporate combination or other event, the trustee will distribute the consideration paid by and received from the acquiring company to the beneficial owners of Internet Architecture HOLDRS; provided that any securities received as consideration will be distributed only if the distributed securities have a different Standard & Poor’s GICS sector classification than any of the underlying securities represented in the Internet Architecture HOLDRS at the time of the distribution or exchange or if the securities received are not listed for trading on a U.S. national securities exchange. In any other case, the additional securities received as consideration will be deposited into the trust.
|
|
D.
|
If an issuer’s underlying securities are delisted from trading on a U.S. national securities exchange and are not listed for trading on another U.S. national securities exchange within five business days from the date such securities are delisted.
|
|
·
|
an individual who is a citizen or resident of the United States;
|
|
·
|
a corporation (or an entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia;
|
|
·
|
an estate, the income of which is includible in gross income for U.S. federal income tax purposes regardless of its source; or
|
|
·
|
a trust if either (i) it is subject to the primary supervision of a U.S. court and one or more U.S. persons have the authority to control all substantial decisions of the trust or (ii) it has a valid election in effect under applicable Treasury Regulations to be treated as a U.S. person.
|
|
·
|
a foreign corporation that is eligible for the benefits of a comprehensive U.S. income tax treaty, which the Secretary of the Treasury determines to be satisfactory and that includes an exchange of information program;
|
|
·
|
a foreign corporation if the stock to which the dividend is paid is readily tradable on an established market in the United States; and
|
|
·
|
a corporation that is incorporated in a possession of the United States;
|
|
·
|
at least 75% of its gross income is “passive income;” or
|
|
·
|
on average at least 50% of the gross value of its assets is attributable to assets that produce “passive income” or are held for the production of passive income.
|
|
·
|
in the case of any gain realized by an individual non-U.S. receipt holder, the non-U.S. receipt holder is present in the United States for 183 days or more in the taxable year of the sale or other disposition and certain other conditions are met;
|
|
·
|
that gain is effectively connected with a U.S. trade or business conducted by the non-U.S. receipt holder or, where a tax treaty applies, is attributable to a permanent establishment maintained in the United States by the non-U.S. receipt holder; or
|
|
·
|
the underlying securities issuer is or has been a U.S. real property holding corporation for U.S. federal income tax purposes at any time during the shorter of the five-year period ending on the date of the disposition or the period during which the non-U.S. receipt holder held the common stock of such issuer and (a) the common stock is not considered to be “regularly traded on an established securities market” or (b) the non-U.S. receipt holder owned, actually or constructively, at any time during the shorter of the periods described above, more than five percent of the common stock of such issuer. It is expected that the underlying securities are currently “regularly traded on an established securities market” although no assurances can be made that the securities will continue to be so traded.
|
2006
|
Closing
Price |
2007
|
Closing
Price |
2008
|
Closing
Price |
2009
|
Closing
Price |
2010
|
Closing
Price |
2011
|
Closing
Price |
||||||||||||||||||
January
|
75.51 |
January
|
85.73 |
January
|
135.36 |
January
|
90.13 |
January
|
192.06 |
January
|
339.32 | ||||||||||||||||||
February
|
68.49 |
February
|
84.61 |
February
|
125.02 |
February
|
89.31 |
February
|
204.62 |
February
|
353.21 | ||||||||||||||||||
March
|
62.72 |
March
|
92.91 |
March
|
143.50 |
March
|
105.12 |
March
|
235.00 | ||||||||||||||||||||
April
|
70.39 |
April
|
99.80 |
April
|
173.95 |
April
|
125.83 |
April
|
261.09 | ||||||||||||||||||||
May
|
59.77 |
May
|
121.19 |
May
|
188.75 |
May
|
135.81 |
May
|
256.88 | ||||||||||||||||||||
June
|
57.27 |
June
|
122.04 |
June
|
167.44 |
June
|
142.43 |
June
|
251.53 | ||||||||||||||||||||
July
|
67.96 |
July
|
131.76 |
July
|
158.95 |
July
|
163.39 |
July
|
257.25 | ||||||||||||||||||||
August
|
67.85 |
August
|
138.48 |
August
|
169.53 |
August
|
168.21 |
August
|
243.10 | ||||||||||||||||||||
September
|
76.98 |
September
|
153.47 |
September
|
113.66 |
September
|
185.35 |
September
|
283.75 | ||||||||||||||||||||
October
|
81.08 |
October
|
189.95 |
October
|
107.59 |
October
|
188.50 |
October
|
300.98 | ||||||||||||||||||||
November
|
91.66 |
November
|
182.22 |
November
|
92.67 |
November
|
199.91 |
November
|
311.15 | ||||||||||||||||||||
December
|
84.84 |
December
|
198.08 |
December
|
85.35 |
December
|
210.73 |
December
|
322.56 |
2006
|
Closing
Price |
2007
|
Closing
Price |
2008
|
Closing
Price |
2009
|
Closing
Price |
2010
|
Closing
Price |
2011
|
Closing
Price |
||||||||||||||||||
January
|
4.60 |
January
|
8.59 |
January
|
6.89 |
January
|
3.81 |
January
|
6.87 |
January
|
5.64 | ||||||||||||||||||
February
|
5.27 |
February
|
9.01 |
February
|
7.69 |
February
|
2.78 |
February
|
5.82 |
February
|
6.37 | ||||||||||||||||||
March
|
6.68 |
March
|
9.52 |
March
|
7.30 |
March
|
3.45 |
March
|
5.71 | ||||||||||||||||||||
April
|
6.16 |
April
|
9.77 |
April
|
7.16 |
April
|
5.78 |
April
|
6.50 | ||||||||||||||||||||
May
|
6.11 |
May
|
9.19 |
May
|
8.06 |
May
|
7.34 |
May
|
5.45 | ||||||||||||||||||||
June
|
6.14 |
June
|
7.82 |
June
|
8.24 |
June
|
7.84 |
June
|
5.16 | ||||||||||||||||||||
July
|
6.26 |
July
|
7.04 |
July
|
6.75 |
July
|
7.86 |
July
|
4.95 | ||||||||||||||||||||
August
|
6.21 |
August
|
7.00 |
August
|
7.42 |
August
|
7.26 |
August
|
5.02 | ||||||||||||||||||||
September
|
7.06 |
September
|
8.56 |
September
|
5.82 |
September
|
7.86 |
September
|
5.86 | ||||||||||||||||||||
October
|
8.11 |
October
|
9.51 |
October
|
3.77 |
October
|
8.60 |
October
|
6.35 | ||||||||||||||||||||
November
|
9.25 |
November
|
7.29 |
November
|
3.22 |
November
|
7.09 |
November
|
4.98 | ||||||||||||||||||||
December
|
8.21 |
December
|
7.34 |
December
|
2.83 |
December
|
7.63 |
December
|
5.29 |
2006
|
Closing
Price |
2007
|
Closing
Price |
2008
|
Closing
Price |
2009
|
Closing
Price |
2010
|
Closing
Price |
2011
|
Closing
Price |
||||||||||||||||||
January
|
28.00 |
January
|
28.09 |
January
|
27.13 |
January
|
6.24 |
January
|
12.75 |
January
|
22.03 | ||||||||||||||||||
February
|
28.14 |
February
|
31.47 |
February
|
25.83 |
February
|
5.37 |
February
|
14.34 |
February
|
27.57 | ||||||||||||||||||
March
|
36.47 |
March
|
27.95 |
March
|
30.83 |
March
|
7.78 |
March
|
15.26 | ||||||||||||||||||||
April
|
28.63 |
April
|
29.16 |
April
|
33.81 |
April
|
11.95 |
April
|
18.53 | ||||||||||||||||||||
May
|
30.10 |
May
|
34.32 |
May
|
30.56 |
May
|
11.00 |
May
|
15.57 | ||||||||||||||||||||
June
|
33.67 |
June
|
36.13 |
June
|
23.17 |
June
|
10.35 |
June
|
12.68 | ||||||||||||||||||||
July
|
25.41 |
July
|
36.53 |
July
|
20.67 |
July
|
11.16 |
July
|
13.09 | ||||||||||||||||||||
August
|
27.65 |
August
|
37.88 |
August
|
17.38 |
August
|
13.40 |
August
|
12.49 | ||||||||||||||||||||
September
|
27.25 |
September
|
38.08 |
September
|
10.08 |
September
|
16.28 |
September
|
15.57 | ||||||||||||||||||||
October
|
23.51 |
October
|
47.86 |
October
|
9.61 |
October
|
11.73 |
October
|
13.81 | ||||||||||||||||||||
November
|
25.14 |
November
|
43.98 |
November
|
7.40 |
November
|
12.15 |
November
|
15.13 | ||||||||||||||||||||
December
|
27.71 |
December
|
34.11 |
December
|
6.70 |
December
|
10.84 |
December
|
21.05 |
2006
|
Closing
Price
|
2007
|
Closing
Price
|
2008
|
Closing
Price
|
2009
|
Closing
Price
|
2010
|
Closing
Price
|
2011
|
Closing
Price
|
||||||||||||||||||
January
|
18.57 |
January
|
26.62 |
January
|
24.50 |
January
|
14.97 |
January
|
22.47 |
January
|
21.15 | ||||||||||||||||||
February
|
20.24 |
February
|
25.94 |
February
|
24.39 |
February
|
14.57 |
February
|
24.33 |
February
|
18.56 | ||||||||||||||||||
March
|
21.67 |
March
|
25.53 |
March
|
24.09 |
March
|
16.77 |
March
|
26.03 | ||||||||||||||||||||
April
|
20.95 |
April
|
26.74 |
April
|
25.64 |
April
|
19.32 |
April
|
26.93 | ||||||||||||||||||||
May
|
19.68 |
May
|
26.92 |
May
|
26.72 |
May
|
18.50 |
May
|
23.16 | ||||||||||||||||||||
June
|
19.53 |
June
|
27.85 |
June
|
23.26 |
June
|
18.65 |
June
|
21.31 | ||||||||||||||||||||
July
|
17.88 |
July
|
28.91 |
July
|
21.99 |
July
|
22.01 |
July
|
23.07 | ||||||||||||||||||||
August
|
21.99 |
August
|
31.92 |
August
|
24.05 |
August
|
21.60 |
August
|
19.99 | ||||||||||||||||||||
September
|
22.98 |
September
|
33.13 |
September
|
22.56 |
September
|
23.54 |
September
|
21.90 | ||||||||||||||||||||
October
|
24.13 |
October
|
33.06 |
October
|
17.77 |
October
|
22.81 |
October
|
22.86 | ||||||||||||||||||||
November
|
26.91 |
November
|
28.02 |
November
|
16.54 |
November
|
23.40 |
November
|
19.16 | ||||||||||||||||||||
December
|
27.33 |
December
|
27.07 |
December
|
16.30 |
December
|
23.94 |
December
|
20.23 |
2006
|
Closing
Price
|
2007
|
Closing
Price
|
2008
|
Closing
Price
|
2009
|
Closing
Price
|
2010
|
Closing
Price
|
2011
|
Closing
Price
|
||||||||||||||||||
January
|
29.31 |
January
|
24.22 |
January
|
20.04 |
January
|
9.50 |
January
|
12.90 |
January
|
13.16 | ||||||||||||||||||
February
|
29.00 |
February
|
22.85 |
February
|
19.90 |
February
|
8.53 |
February
|
13.24 |
February
|
15.83 | ||||||||||||||||||
March
|
29.76 |
March
|
23.21 |
March
|
19.92 |
March
|
9.48 |
March
|
15.02 | ||||||||||||||||||||
April
|
26.20 |
April
|
25.21 |
April
|
18.63 |
April
|
11.62 |
April
|
16.20 | ||||||||||||||||||||
May
|
25.38 |
May
|
26.91 |
May
|
23.06 |
May
|
11.57 |
May
|
13.33 | ||||||||||||||||||||
June
|
24.46 |
June
|
28.55 |
June
|
21.88 |
June
|
13.73 |
June
|
12.06 | ||||||||||||||||||||
July
|
21.68 |
July
|
27.97 |
July
|
24.57 |
July
|
13.38 |
July
|
13.24 | ||||||||||||||||||||
August
|
22.55 |
August
|
28.25 |
August
|
21.73 |
August
|
15.83 |
August
|
11.77 | ||||||||||||||||||||
September
|
22.84 |
September
|
27.60 |
September
|
16.48 |
September
|
15.26 |
September
|
12.97 | ||||||||||||||||||||
October
|
24.33 |
October
|
30.60 |
October
|
12.20 |
October
|
14.45 |
October
|
14.40 | ||||||||||||||||||||
November
|
27.24 |
November
|
24.54 |
November
|
11.17 |
November
|
14.12 |
November
|
13.22 | ||||||||||||||||||||
December
|
25.09 |
December
|
24.51 |
December
|
10.24 |
December
|
14.36 |
December
|
13.55 |
2006
|
Closing
Price
|
2007
|
Closing
Price
|
2008
|
Closing
Price
|
2009
|
Closing
Price
|
2010
|
Closing
Price
|
2011
|
Closing
Price
|
||||||||||||||||||
January
|
13.40 |
January
|
13.99 |
January
|
15.83 |
January
|
11.04 |
January
|
16.67 |
January
|
24.89 | ||||||||||||||||||
February
|
14.02 |
February
|
13.96 |
February
|
15.54 |
February
|
10.50 |
February
|
17.49 |
February
|
27.21 | ||||||||||||||||||
March
|
13.63 |
March
|
13.85 |
March
|
14.34 |
March
|
11.40 |
March
|
18.04 | ||||||||||||||||||||
April
|
13.51 |
April
|
15.18 |
April
|
15.40 |
April
|
12.53 |
April
|
19.01 | ||||||||||||||||||||
May
|
12.80 |
May
|
16.89 |
May
|
17.44 |
May
|
11.75 |
May
|
18.62 | ||||||||||||||||||||
June
|
10.97 |
June
|
18.10 |
June
|
14.69 |
June
|
13.10 |
June
|
18.30 | ||||||||||||||||||||
July
|
10.15 |
July
|
18.51 |
July
|
15.01 |
July
|
15.06 |
July
|
19.79 | ||||||||||||||||||||
August
|
11.65 |
August
|
19.66 |
August
|
15.28 |
August
|
15.90 |
August
|
18.24 | ||||||||||||||||||||
September
|
11.98 |
September
|
20.80 |
September
|
11.96 |
September
|
17.04 |
September
|
20.31 | ||||||||||||||||||||
October
|
12.25 |
October
|
25.39 |
October
|
11.78 |
October
|
16.47 |
October
|
21.02 | ||||||||||||||||||||
November
|
13.11 |
November
|
19.27 |
November
|
10.57 |
November
|
16.83 |
November
|
21.49 | ||||||||||||||||||||
December
|
13.20 |
December
|
18.53 |
December
|
10.47 |
December
|
17.47 |
December
|
22.90 |
2006
|
Closing
Price
|
2007
|
Closing
Price
|
2008
|
Closing
Price
|
2009
|
Closing
Price
|
2010
|
Closing
Price
|
2011
|
Closing
Price
|
||||||||||||||||||
January
|
4.90 |
January
|
4.15 |
January
|
3.45 |
January
|
1.77 |
January
|
2.47 |
January
|
3.28 | ||||||||||||||||||
February
|
4.63 |
February
|
4.41 |
February
|
3.01 |
February
|
1.42 |
February
|
2.75 |
February
|
3.92 | ||||||||||||||||||
March
|
5.02 |
March
|
4.23 |
March
|
3.10 |
March
|
1.52 |
March
|
3.07 | ||||||||||||||||||||
April
|
4.54 |
April
|
4.09 |
April
|
3.03 |
April
|
1.76 |
April
|
3.33 | ||||||||||||||||||||
May
|
4.44 |
May
|
3.75 |
May
|
3.25 |
May
|
1.65 |
May
|
2.86 | ||||||||||||||||||||
June
|
4.16 |
June
|
4.05 |
June
|
2.84 |
June
|
2.00 |
June
|
2.70 | ||||||||||||||||||||
July
|
3.81 |
July
|
4.06 |
July
|
2.93 |
July
|
2.27 |
July
|
2.86 | ||||||||||||||||||||
August
|
3.69 |
August
|
3.46 |
August
|
3.50 |
August
|
2.43 |
August
|
2.76 | ||||||||||||||||||||
September
|
3.63 |
September
|
3.84 |
September
|
3.37 |
September
|
2.80 |
September
|
3.11 | ||||||||||||||||||||
October
|
3.80 |
October
|
4.38 |
October
|
1.84 |
October
|
1.99 |
October
|
3.19 | ||||||||||||||||||||
November
|
3.97 |
November
|
3.64 |
November
|
2.10 |
November
|
2.18 |
November
|
2.93 | ||||||||||||||||||||
December
|
4.19 |
December
|
3.54 |
December
|
2.34 |
December
|
2.87 |
December
|
3.09 |
2006
|
Closing
Price
|
2007
|
Closing
Price
|
2008
|
Closing
Price
|
2009
|
Closing
Price
|
2010
|
Closing
Price
|
2011
|
Closing
Price
|
||||||||||||||||||
January
|
31.18 |
January
|
43.28 |
January
|
43.72 |
January
|
34.75 |
January
|
47.07 |
January
|
45.69 | ||||||||||||||||||
February
|
32.81 |
February
|
39.35 |
February
|
47.77 |
February
|
29.03 |
February
|
50.79 |
February
|
43.63 | ||||||||||||||||||
March
|
32.90 |
March
|
40.14 |
March
|
45.66 |
March
|
32.06 |
March
|
53.15 | ||||||||||||||||||||
April
|
32.47 |
April
|
42.14 |
April
|
46.35 |
April
|
35.98 |
April
|
51.97 | ||||||||||||||||||||
May
|
32.38 |
May
|
45.71 |
May
|
47.06 |
May
|
34.35 |
May
|
46.01 | ||||||||||||||||||||
June
|
31.68 |
June
|
44.62 |
June
|
44.21 |
June
|
38.65 |
June
|
43.28 | ||||||||||||||||||||
July
|
31.91 |
July
|
46.03 |
July
|
44.80 |
July
|
43.30 |
July
|
46.04 | ||||||||||||||||||||
August
|
36.56 |
August
|
49.35 |
August
|
46.92 |
August
|
44.89 |
August
|
38.45 | ||||||||||||||||||||
September
|
36.69 |
September
|
49.79 |
September
|
46.24 |
September
|
47.21 |
September
|
42.07 | ||||||||||||||||||||
October
|
38.74 |
October
|
51.68 |
October
|
38.28 |
October
|
47.46 |
October
|
42.04 | ||||||||||||||||||||
November
|
39.46 |
November
|
51.16 |
November
|
35.28 |
November
|
49.06 |
November
|
41.93 | ||||||||||||||||||||
December
|
41.19 |
December
|
50.48 |
December
|
36.29 |
December
|
51.51 |
December
|
42.10 |
2006
|
Closing
Price
|
2007
|
Closing
Price
|
2008
|
Closing
Price
|
2009
|
Closing
Price
|
2010
|
Closing
Price
|
2011
|
Closing
Price
|
||||||||||||||||||
January
|
81.30 |
January
|
99.15 |
January
|
107.11 |
January
|
91.65 |
January
|
122.39 |
January
|
162.00 | ||||||||||||||||||
February
|
80.24 |
February
|
92.94 |
February
|
113.86 |
February
|
92.03 |
February
|
127.16 |
February
|
161.88 | ||||||||||||||||||
March
|
82.47 |
March
|
94.26 |
March
|
115.14 |
March
|
96.89 |
March
|
128.25 | ||||||||||||||||||||
April
|
82.34 |
April
|
102.21 |
April
|
120.70 |
April
|
103.21 |
April
|
129.00 | ||||||||||||||||||||
May
|
79.90 |
May
|
106.60 |
May
|
129.43 |
May
|
106.28 |
May
|
125.26 | ||||||||||||||||||||
June
|
76.82 |
June
|
105.25 |
June
|
118.53 |
June
|
104.42 |
June
|
123.48 | ||||||||||||||||||||
July
|
77.41 |
July
|
110.65 |
July
|
127.98 |
July
|
117.93 |
July
|
128.40 | ||||||||||||||||||||
August
|
80.97 |
August
|
116.69 |
August
|
121.73 |
August
|
118.05 |
August
|
123.13 | ||||||||||||||||||||
September
|
81.94 |
September
|
117.80 |
September
|
116.96 |
September
|
119.61 |
September
|
134.14 | ||||||||||||||||||||
October
|
92.33 |
October
|
116.12 |
October
|
92.97 |
October
|
120.61 |
October
|
143.60 | ||||||||||||||||||||
November
|
91.92 |
November
|
105.18 |
November
|
81.60 |
November
|
126.35 |
November
|
141.46 | ||||||||||||||||||||
December
|
97.15 |
December
|
108.10 |
December
|
84.16 |
December
|
130.90 |
December
|
146.76 |
2006
|
Closing
Price
|
2007
|
Closing
Price
|
2008
|
Closing
Price
|
2009
|
Closing
Price
|
2010
|
Closing
Price
|
2011
|
Closing
Price
|
||||||||||||||||||
January
|
18.13 |
January
|
18.12 |
January
|
27.15 |
January
|
14.16 |
January
|
24.83 |
January
|
37.12 | ||||||||||||||||||
February
|
18.39 |
February
|
18.91 |
February
|
26.82 |
February
|
14.21 |
February
|
27.98 |
February
|
44.00 | ||||||||||||||||||
March
|
19.12 |
March
|
19.68 |
March
|
25.00 |
March
|
15.05 |
March
|
30.68 | ||||||||||||||||||||
April
|
18.48 |
April
|
22.36 |
April
|
27.62 |
April
|
21.65 |
April
|
28.41 | ||||||||||||||||||||
May
|
15.93 |
May
|
24.41 |
May
|
27.52 |
May
|
24.73 |
May
|
26.62 | ||||||||||||||||||||
June
|
15.99 |
June
|
25.17 |
June
|
22.18 |
June
|
23.60 |
June
|
22.82 | ||||||||||||||||||||
July
|
13.45 |
July
|
29.96 |
July
|
26.03 |
July
|
26.13 |
July
|
27.78 | ||||||||||||||||||||
August
|
14.66 |
August
|
32.92 |
August
|
25.70 |
August
|
23.07 |
August
|
27.20 | ||||||||||||||||||||
September
|
17.28 |
September
|
36.61 |
September
|
21.07 |
September
|
27.02 |
September
|
30.35 | ||||||||||||||||||||
October
|
17.22 |
October
|
36.00 |
October
|
18.74 |
October
|
25.51 |
October
|
32.39 | ||||||||||||||||||||
November
|
21.29 |
November
|
29.72 |
November
|
17.38 |
November
|
26.13 |
November
|
34.02 | ||||||||||||||||||||
December
|
18.94 |
December
|
33.20 |
December
|
17.51 |
December
|
26.67 |
December
|
36.92 |
2006
|
Closing
Price
|
2007
|
Closing
Price
|
2008
|
Closing
Price
|
2009
|
Closing
Price
|
2010
|
Closing
Price
|
2011
|
Closing
Price
|
||||||||||||||||||
January
|
31.20 |
January
|
37.60 |
January
|
23.22 |
January
|
14.83 |
January
|
29.13 |
January
|
54.73 | ||||||||||||||||||
February
|
33.16 |
February
|
38.67 |
February
|
21.62 |
February
|
13.44 |
February
|
30.01 |
February
|
51.66 | ||||||||||||||||||
March
|
36.03 |
March
|
36.52 |
March
|
20.05 |
March
|
14.84 |
March
|
32.54 | ||||||||||||||||||||
April
|
37.07 |
April
|
37.21 |
April
|
24.20 |
April
|
18.30 |
April
|
34.67 | ||||||||||||||||||||
May
|
32.00 |
May
|
32.16 |
May
|
24.38 |
May
|
19.50 |
May
|
37.68 | ||||||||||||||||||||
June
|
35.30 |
June
|
29.19 |
June
|
21.66 |
June
|
19.72 |
June
|
37.31 | ||||||||||||||||||||
July
|
29.65 |
July
|
28.34 |
July
|
25.55 |
July
|
22.46 |
July
|
42.30 | ||||||||||||||||||||
August
|
34.24 |
August
|
27.86 |
August
|
25.48 |
August
|
22.75 |
August
|
40.38 | ||||||||||||||||||||
September
|
37.01 |
September
|
26.91 |
September
|
18.23 |
September
|
26.68 |
September
|
49.79 | ||||||||||||||||||||
October
|
36.50 |
October
|
31.49 |
October
|
13.53 |
October
|
27.05 |
October
|
53.25 | ||||||||||||||||||||
November
|
39.28 |
November
|
24.71 |
November
|
13.50 |
November
|
30.81 |
November
|
50.93 | ||||||||||||||||||||
December
|
39.28 |
December
|
24.96 |
December
|
13.97 |
December
|
34.36 |
December
|
54.96 |
2006
|
Closing
Price
|
2007
|
Closing
Price
|
2008
|
Closing
Price
|
2009
|
Closing
Price
|
2010
|
Closing
Price
|
2011
|
Closing
Price
|
||||||||||||||||||
January
|
49.50 |
January
|
37.30 |
January
|
33.80 |
January
|
23.50 |
January
|
19.39 |
January
|
20.86 | ||||||||||||||||||
February
|
46.70 |
February
|
38.30 |
February
|
34.90 |
February
|
25.20 |
February
|
19.26 |
February
|
21.35 | ||||||||||||||||||
March
|
47.00 |
March
|
37.40 |
March
|
36.60 |
March
|
26.70 |
March
|
20.11 | ||||||||||||||||||||
April
|
47.00 |
April
|
36.70 |
April
|
32.20 |
April
|
29.50 |
April
|
19.79 | ||||||||||||||||||||
May
|
44.20 |
May
|
37.20 |
May
|
33.90 |
May
|
29.80 |
May
|
17.62 | ||||||||||||||||||||
June
|
40.60 |
June
|
40.20 |
June
|
32.20 |
June
|
31.30 |
June
|
16.62 | ||||||||||||||||||||
July
|
36.30 |
July
|
41.60 |
July
|
34.80 |
July
|
34.00 |
July
|
23.28 | ||||||||||||||||||||
August
|
36.70 |
August
|
39.50 |
August
|
35.00 |
August
|
30.40 |
August
|
21.92 | ||||||||||||||||||||
September
|
37.80 |
September
|
40.70 |
September
|
32.30 |
September
|
30.20 |
September
|
32.41 | ||||||||||||||||||||
October
|
37.50 |
October
|
42.70 |
October
|
33.40 |
October
|
28.50 |
October
|
30.49 | ||||||||||||||||||||
November
|
37.30 |
November
|
38.50 |
November
|
30.70 |
November
|
28.30 |
November
|
30.02 | ||||||||||||||||||||
December
|
37.60 |
December
|
38.40 |
December
|
26.90 |
December
|
20.91 |
December
|
20.59 |
2006
|
Closing
Price
|
2007
|
Closing
Price
|
2008
|
Closing
Price
|
2009
|
Closing
Price
|
2010
|
Closing
Price
|
2011
|
Closing
Price
|
||||||||||||||||||
January
|
18.38 |
January
|
17.71 |
January
|
17.93 |
January
|
15.33 |
January
|
16.95 |
January
|
17.61 | ||||||||||||||||||
February
|
16.89 |
February
|
17.10 |
February
|
16.84 |
February
|
13.83 |
February
|
16.55 |
February
|
18.03 | ||||||||||||||||||
March
|
16.83 |
March
|
17.30 |
March
|
16.62 |
March
|
14.94 |
March
|
16.93 | ||||||||||||||||||||
April
|
16.38 |
April
|
17.60 |
April
|
17.22 |
April
|
17.25 |
April
|
16.77 | ||||||||||||||||||||
May
|
15.60 |
May
|
19.99 |
May
|
21.73 |
May
|
15.63 |
May
|
14.17 | ||||||||||||||||||||
June
|
15.54 |
June
|
20.20 |
June
|
19.35 |
June
|
15.58 |
June
|
13.88 | ||||||||||||||||||||
July
|
17.35 |
July
|
19.20 |
July
|
21.07 |
July
|
14.93 |
July
|
12.97 | ||||||||||||||||||||
August
|
18.62 |
August
|
18.81 |
August
|
22.31 |
August
|
15.12 |
August
|
13.63 | ||||||||||||||||||||
September
|
21.28 |
September
|
19.38 |
September
|
19.58 |
September
|
16.47 |
September
|
15.13 | ||||||||||||||||||||
October
|
19.84 |
October
|
18.78 |
October
|
12.58 |
October
|
17.58 |
October
|
16.19 | ||||||||||||||||||||
November
|
21.22 |
November
|
17.80 |
November
|
12.03 |
November
|
17.75 |
November
|
16.80 | ||||||||||||||||||||
December
|
20.85 |
December
|
16.14 |
December
|
13.52 |
December
|
17.89 |
December
|
16.74 |
2006
|
Closing
Price
|
2007
|
Closing
Price
|
2008
|
Closing
Price
|
2009
|
Closing
Price
|
2010
|
Closing
Price
|
2011
|
Closing
Price
|
||||||||||||||||||
January
|
66.90 |
January
|
86.20 |
January
|
41.20 |
January
|
7.50 |
January
|
28.89 |
January
|
28.33 | ||||||||||||||||||
February
|
66.80 |
February
|
84.90 |
February
|
41.30 |
February
|
3.60 |
February
|
34.91 |
February
|
37.16 | ||||||||||||||||||
March
|
68.90 |
March
|
84.30 |
March
|
44.30 |
March
|
5.30 |
March
|
34.89 | ||||||||||||||||||||
April
|
62.40 |
April
|
78.40 |
April
|
41.60 |
April
|
12.20 |
April
|
28.02 | ||||||||||||||||||||
May
|
65.80 |
May
|
83.20 |
May
|
50.60 |
May
|
13.90 |
May
|
23.20 | ||||||||||||||||||||
June
|
62.80 |
June
|
91.40 |
June
|
39.50 |
June
|
15.10 |
June
|
18.49 | ||||||||||||||||||||
July
|
51.20 |
July
|
80.90 |
July
|
36.90 |
July
|
17.90 |
July
|
27.01 | ||||||||||||||||||||
August
|
53.50 |
August
|
73.70 |
August
|
40.90 |
August
|
24.40 |
August
|
22.36 | ||||||||||||||||||||
September
|
56.60 |
September
|
66.20 |
September
|
27.50 |
September
|
26.70 |
September
|
27.90 | ||||||||||||||||||||
October
|
65.40 |
October
|
60.80 |
October
|
15.20 |
October
|
29.14 |
October
|
23.05 | ||||||||||||||||||||
November
|
72.10 |
November
|
49.60 |
November
|
6.70 |
November
|
32.09 |
November
|
22.61 | ||||||||||||||||||||
December
|
78.40 |
December
|
47.30 |
December
|
8.50 |
December
|
38.56 |
December
|
25.89 |
Merrill Lynch, Pierce, Fenner & Smith Incorporated | |||
By: |
*
|
||
Name: | Sallie L. Krawcheck | ||
Title: | Co-Chief Executive Officer | ||
Executive Vice President and Director |
Signature
|
Title
|
|||
*
|
Co-Chief Executive Officer, Executive Vice
President and Director
|
|||
Sallie L. Krawcheck
|
(Principal Executive Officer)
|
|||
*
|
Co-Chief Executive Officer, Executive Vice
President and Director
|
|||
Thomas K. Montag
|
(Principal Executive Officer)
|
|||
*
|
Chief Financial Officer and Senior Vice President
|
|||
Robert Qutub
|
(Principal Financial Officer and Principal
Accounting Officer)
|
|||
*
|
Executive Vice President and Director
|
|||
Bruce R. Thompson
|
||||
*By:
|
/s/ Liam B. O’Neil |
|
Attorney-in-Fact
|
|
Liam B. O’Neil
|
*4.1
|
Standard Terms for Depositary Trust Agreements between Merrill Lynch, Pierce, Fenner & Smith Incorporated and The Bank of New York Mellon (formerly known as The Bank of New York), as Trustee dated as of September 2, 1999, and included as exhibits thereto, form of Depositary Trust Agreement and form of HOLDRS, filed on February 10, 2000 as an exhibit to Amendment No. 1 to the registration statement filed on Form S-1 for Internet Architecture HOLDRS.
|
*4.2
|
Amendment No. 2 to the Standard Terms for Depositary Trust Agreements, dated as of November 22, 2000, filed on November 28, 2000 as an exhibit to post-effective Amendment No. 1 to the registration statement on Form S-1 for Internet Architecture HOLDRS.
|
*5.1
|
Opinion of Shearman & Sterling LLP regarding the validity of the Internet Architecture HOLDRS Receipts, filed on February 10, 2000 as an exhibit to Amendment No. 1 to the registration statement filed on Form S-1 for Internet Architecture HOLDRS.
|
*8.1
|
Opinion of Shearman & Sterling LLP, as special U.S. tax counsel, regarding the material federal income tax consequences, filed on February 10, 2000 as an exhibit to Amendment No. 1 to the registration statement filed on Form S-1 for Internet Architecture HOLDRS.
|
*8.2
|
Opinion of Shearman & Sterling LLP, as special U.S. tax counsel, regarding the material federal income tax consequences, filed on July 9, 2003 as an exhibit to Amendment No. 5 to the registration statement filed on Form S-1 for Internet Architecture HOLDRS.
|
*24.1
|
Power of Attorney of Sallie L. Krawcheck, Thomas K. Montag, Robert Qutub and Bruce R. Thompson.
|
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