Document:

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                     MANUFACTURING AND FORMULATION AGREEMENT

         AGREEMENT made as of this 3rd day of October, 2000, between
KMG-BERNUTH, INC., a Delaware corporation, having its principal office in
Houston, Texas, (hereinafter referred to as "KMG") and GB BIOSCIENCES
CORPORATION, a Delaware corporation, having its principal office in
Wilmington, Delaware, (hereinafter referred to as "GB").

                                    RECITALS

         WHEREAS, GB manufactures and/or sells and markets a
monosodium/-disodium methanearsonic acid based pesticide products line
(commonly referred to as MSMA and DSMA products) in the United States and
certain other countries (the "Arsonates Line");

         WHEREAS, GB and KMG and KMG's parent, KMG CHEMICALS, INC., a Texas
corporation, have entered into that certain Asset Sale Agreement dated the
date hereof by ("Asset Sale Agreement") which GB shall sell and KMG shall
purchase the Arsonates Line of GB on the terms and conditions set forth
therein; and

         WHEREAS, a condition of the purchase of the Arsonates Line by KMG is
that GB manufacture and formulate certain MSMA products for sale to KMG for an
interim period on the terms and conditions set forth herein.

         NOW THEREFORE, in consideration of mutual covenants and agreements
herein contained, the parties agree as follows:

                                    ARTICLE I
                MANUFACTURE OF TECHNICAL AND FORMULATED PRODUCTS

         1.1 GB shall manufacture active ingredient (monomethanearsonic acid)
in accordance with the specifications set forth in SCHEDULE 1 ("Technical
Product") and formulate Technical Product into the end-use products
("Formulated Products") described on and in accordance with the specifications
set forth in SCHEDULE 2, and KMG shall purchase such Technical Product and
Formulated Products, for the price and on the other terms and conditions set
forth in this Agreement (Technical Product and Formulated Products are
sometimes referred to collectively as "MSMA products"). Subject to the
provisions of the Asset Sale Agreement, if requested by KMG, during the Term
GB shall cause KMG to be a subregistrant under pesticide registrations
pertaining to MSMA products held by GB or its affiliates.

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         1.2 GB shall manufacture and formulate MSMA products at its
production facility ("Plant") located at 2239 Haden Road, Houston, Texas for
KMG, and KMG shall purchase MSMA products from GB, until (i) GB shall have
manufactured and formulated [omitted subject to a request for confidential
treatment], subject to a 2% upward variance to facilitate batch production,
of MSMA products (as determined from the Inventory Report, hereinafter
defined and/or other reports generated by GB to reasonably verify such
inventory amounts, and including Existing Inventory), or (ii) the expiration
of thirty (30) days after receipt of written notice from KMG to GB that GB
should cease manufacturing and formulating MSMA products or (iii) February 15,
2001, whichever is earliest ("Plant Shutdown"). GB agrees that it will use all
commercially reasonable efforts to manufacture and formulate MSMA products at
the Plant that, when combined with all Existing Inventory (hereinafter
defined) shall be sufficient to satisfy clause (i) of the immediately
preceding sentence prior to Plant Shutdown.

         1.3 Prior to Plant Shutdown, but subject to the storage limitations
for Technical Product set forth in Section 4.1, GB agrees to allocate its
production of MSMA products among Technical Product and particular Formulated
Products in the manner that KMG may reasonably request after consultation with
GB. Notwithstanding the foregoing, it is the parties expectation that 25% of
the MSMA products (including Existing Inventory) produced by GB and purchased
by KMG hereunder shall be Technical Product and 75% of the MSMA products
(including Existing Inventory) produced by GB and purchased by KMG hereunder
shall be Formulated Products. If this ratio increases or decreases by more
than 10%, the parties shall meet in good faith to discuss an equitable
adjustment to the price paid for MSMA products hereunder. It is agreed that
the MSMA products manufactured and formulated hereunder shall constitute the
entire output of the Plant during the Term (hereinafter defined) of this
Agreement and GB shall not manufacture, formulate or package MSMA products
during the Term for any other person or entity and GB and its affiliates shall
not sell MSMA products after the date hereof. Any MSMA products manufactured
or formulated by GB prior to the date hereof and unsold by GB at the date
hereof (the "Existing Inventory") shall be purchased by KMG on the terms and
conditions of this Agreement, except for existing inventory of DMSA and Ansar
8100 held by GB at Closing, which the parties agree GB can sell until
depleted. GB shall not be restricted in any way under this Agreement from
manufacturing, formulating or packaging products other than MSMA products.

         1.4 All costs and expenses necessary for the manufacturing and
formulation of Technical Product and Formulated Products under this Agreement,
including but not limited to the cost of raw materials, supplies and
utilities, shall be borne by GB, provided, however, KMG shall purchase from GB
(Ex Works the Plant, Incoterms 2000) at GB's actual cost all arsenic trioxide
on hand at Plant Shutdown that has not been

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used to manufacture and formulate MSMA products hereunder ("Raw Materials").
At its option, KMG may also purchase from GB any Packaging Materials (as
hereinafter defined) used for Packaging MSMA and remaining at Plant Shutdown
at GB's actual cost. GB's invoice for the Raw Materials and Packaging
Materials purchased by KMG shall include reasonable evidence of its actual
cost and shall be payable net 30 days.

         1.5 After Plant Shutdown, GB shall thereafter have no obligation to
manufacture Technical Product or Formulated Products for KMG.

         1.6 Title and risk of loss of or damage to Technical Product shall
pass to KMG on December 31, 2000, Plant Shutdown or delivery of Technical
Product to a carrier for shipment per instructions from KMG, whichever is
earlier. Title and risk of loss of or damage to Formulated Products shall pass
to KMG upon delivery of Formulated Products, packaged for shipment, to one or
more off-site storage location selected by the parties.

                                   ARTICLE II
                                     PAYMENT

         2.1 For MSMA products, including Existing Inventory, manufactured and
formulated by GB and sold to KMG hereunder, KMG shall pay GB a fee of
[omitted subject to a request for confidential treatment] ("Tolling Fee"),
payable as set forth in Section 2.3.

         2.2 The Tolling Fee shall be payable as follows: Each month GB shall
invoice and KMG shall pay to GB the Tolling Fee (i) for each gallon of
Formulated Product (including Existing Inventory of Formulated Product) placed
into the agreed off-site storage facilities by GB in the preceding month and
(ii) prior to Plant Shutdown, for each gallon of Technical Product (including
Existing Inventory of Technical Product) delivered in the preceding month by
GB for shipment per shipping instructions from KMG. The monthly Inventory
Report (hereinafter defined) shall be used for the preparation of such monthly
invoices. Upon Plant Shutdown, KMG shall pay GB the Tolling Fee for each
gallon of Technical Product manufactured by GB hereunder (excluding Technical
Product formulated into Formulated Product and Technical Product delivered for
shipment prior to Plant Shutdown).

         2.3 On or before five (5) business days after the end of each month
during the Term, GB shall produce a report or accounting ("Inventory Report")
of Formulated Product placed into the off-site storage area and of Technical
Product as to which title and risk of loss has passed to KMG. In the
preparation of the Inventory Report, GB shall be responsible for reporting on
the amount of Formulated Product placed into the off-site storage area and of
Technical Product as to which title and risk of loss has

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passed to KMG. Each Inventory Report shall set forth the quantity of MSMA
products (including Existing Inventory) manufactured and formulated under this
Agreement during the preceding month and in the aggregate and be in such form
as the parties may reasonably agree.

         2.4 Notwithstanding anything to the contrary in this Article II, KMG
shall take delivery of and pay for all Existing Inventory, MSMA products, Raw
Materials (and Packaging Materials, if applicable) manufactured for or
supplied to KMG hereunder no later than June 30, 2001.

         2.5 The Tolling Fee payable under this Article II is exclusive of all
sales taxes, duties, or other similar fees or charges related to the sale of
the MSMA products; to the extent GB is subject to any such taxes, fees or
charges, KMG shall reimburse GB.

                                   ARTICLE III
                             PACKAGING AND SHIPPING

         3.1 GB shall package, label, mark, and handle (such activities
generally collectively referred to herein as "Packaging") the Formulated
Products in accordance with the specifications in SCHEDULE 2 hereto. GB, at
its sole cost and expense, shall supply all raw materials, containers,
cartons, strapping and other packaging materials ("Packaging Materials")
required to formulate and package the Formulated Products. Copies of material
safety data sheets for the MSMA products, including applicable raw materials,
and a list of packaging components are attached hereto as SCHEDULE 3 (the
"Packaging Components").

         3.2 From time to time KMG shall submit shipping instructions to GB
for quantities of Technical Product. All quantities shall be for immediate
shipment unless otherwise provided in the shipping instructions. GB shall at
its cost and expense remove Technical Products from storage at the Plant and
load them on the carrier in accordance with the shipping instructions. GB
shall at its cost and expense transport all Formulated Product to the agreed
off-site storage facilities selected by the parties. KMG shall be responsible
for removing any Formulated Products from storage at such off-site facilities
and shall pay any and all costs associated with loading and shipping such
Formulated Products from the storage facilities.

                                   ARTICLE IV
                            STORAGE OF MSMA PRODUCTS

         4.1 GB shall store Technical Product in bulk form in its dedicated
storage tank to the maximum of GB's dedicated storage tankage, but not
exceeding 150,000

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gallons. GB shall store Formulated Products at off-site storage facilities
selected by the parties.

         4.2 All costs and expenses of storage of MSMA products at the Plant
shall be borne by GB and KMG shall not be charged any rent, stocking, handling
or other similar fee in connection therewith. All costs and expenses of
storage at off-site facilities of MSMA products, including warehouse in/out
charges, shall be borne by KMG or reimbursed by KMG to GB.

                                    ARTICLE V
                          MSMA PRODUCTS LOSS AVOIDANCE

         5.1 GB shall undertake reasonable efforts to minimize any loss, theft
of or damage to KMG's Technical Product and Formulated Products while in GB's
possession or control.

         5.2 GB agrees to notify KMG within ten (10) business days upon its
becoming aware of any loss, theft or damage to MSMA products.

                                   ARTICLE VI
                                  WASTE ISSUES

         6.1 GB will dispose of all waste resulting from the activities
hereunder. At KMG's request, GB shall provide KMG with copies of any manifests
or other documentation relating to such waste disposal.

                                   ARTICLE VII
                     QUALITY CONTROL, SAMPLING AND REPORTING

         7.1 KMG shall have the right to enter GB's Plant with prior notice to
GB during regular business hours for the purpose of observing the manufacture
of Technical Product, the formulating of Formulated Products, the packaging of
Formulated Products, conducting inventories, inspecting the quality of the
Technical Product and the Formulated Products and its packaging, and/or
obtaining samples of the materials being furnished.

         7.2 For each lot of Technical Product and Formulated Product
prepared, GB shall perform quality assurance pursuant to GB's Product Manuals,
a copy of which have been provided to KMG. Copies of each quality assurance
report shall be provided to KMG.

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         7.3 Any and all costs and expenses incurred by or for the account of
GB outside of the Plant in performing the sampling and analysis pursuant to
this Article VII shall be invoiced directly to KMG or reimbursed by KMG on
request.

         7.4 For samples sent to KMG, all samples shall be properly packaged
and shipped to a storage destination of KMG's choice.

                                  ARTICLE VIII
                      WARRANTIES AND LIMITATION OF DAMAGES

         8.1 GB warrants that all Technical Product will comply with the
specifications on SCHEDULE 1 when delivered to KMG. EXCEPT AS PROVIDED IN THE
FOREGOING SENTENCE, GB MAKES NO WARRANTY, EXPRESS OR IMPLIED WITH REGARD TO
THE TECHNICAL PRODUCTS OR GB'S SERVICES HEREUNDER, AND ANY IMPLIED WARRANTY OF
SUITABILITY OR MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE IS HEREBY
DISCLAIMED.

         8.2 GB warrants its formulation and packaging of all Formulated
Products hereunder shall comply with the specifications therefor set forth in
SCHEDULE 2. EXCEPT AS PROVIDED IN THE FOREGOING SENTENCE, GB MAKES NO
WARRANTY, EXPRESS OR IMPLIED WITH REGARD TO THE FORMULATED PRODUCTS OR GB'S
SERVICES HEREUNDER, AND ANY IMPLIED WARRANTY OF SUITABILITY OR MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE IS HEREBY DISCLAIMED.

         8.3 Notwithstanding any other provision of this Agreement, in the
event either party is liable to the other for any matter relating to this
Agreement, whether arising in contract, equity or tort (including without
limitation any claim for negligence), and in addition to any other limitation
of liability or remedy set forth in this Agreement, the amount of damages
recoverable by either party shall not include any amount for ANY INDIRECT OR
CONSEQUENTIAL DAMAGES, INCLUDING LOST PROFITS, LOST INCOME OR LOST SAVINGS.

                                   ARTICLE IX
                             INDEPENDENT CONTRACTOR

         9.1 In the performance of this Agreement, GB is engaged as an
independent business as an independent contractor, and nothing herein shall be
construed to the contrary. GB shall act as an independent contractor for KMG
in performing hereunder, and shall furnish all labor, supervision, machinery
and equipment necessary for its performance hereunder and shall obtain and
maintain all building and other permits and licenses required by public
authorities in connection therewith. Neither party reserves

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any right to exercise any control over any of the other party's employees, who
shall be entirely under the control and direction of such party. Nothing in
this Agreement shall make either party the partner, agent, or representative
of the other party.

                                    ARTICLE X
                           GENERAL INDEMNITY AGREEMENT

         10.1 GB shall assume full responsibility for and shall defend,
indemnify and hold harmless KMG, its directors, officers, employees, agents
and direct and indirect affiliates, from and against any and all losses,
claims, obligations, liens, encumbrances, liabilities, penalties, causes of
actions, damages, costs and expenses, (including, without limitation, orders,
judgments, fines, amounts paid in settlement and reasonable attorneys' fees
and expenses), whether the foregoing are based in contract, tort, strict
liability, breach of warranty, the sole or concurrent negligence of GB or any
person whose negligence, duties, actions or liabilities may be attributed or
imputed to GB, or any other legal theory, for personal injury to or death of
persons (including employees of GB or KMG), damage to (including loss of use
of) or destruction of any property, or damage or harm to, contamination of or
adverse effect on human beings or the environment, proximately caused by (i)
the failure of any of the Technical Product or Formulated Product manufactured
or formulated by GB hereunder to meet the specifications therefor set forth in
Schedule 1 and Schedule 2, respectively; (ii) any grossly negligent act or
omission hereunder of GB, its officers, employees, agents or contractors; or
(iii) any violation of any law or regulation by GB, its officers, employees,
agents or contractors.

         10.2 KMG shall assume full responsibility for and shall defend,
indemnify and hold harmless GB, its directors, officers, employees and agents
and direct and indirect affiliates, from and against any and all loss or
claims, obligations, liens, encumbrances, liabilities, penalties, causes or
action, damages, costs and expenses (including without limitation, orders,
judgments, fines, amounts paid in settlement and reasonable attorneys' fees
and expenses), whether the foregoing are based in contract, tort, strict
liability, breach of warranty, the sole or concurrent negligence of KMG or any
person whose negligence, duties, actions or liabilities may be attributed or
imputed to KMG, or any other legal theory, for personal injury to or death of
persons (including employees of KMG or GB), and/or damage to (including loss
of use of) or destruction of any property or, damage or harm to, or
contamination of or adverse effect on human beings or the environment,
proximately caused by (i) any grossly negligent act or omission hereunder of
KMG, its officers, employees, agents or contractors; (iii) any violation of
any law or regulation by KMG, its officers, employees, agents or contractors.

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         10.3 The obligations of Section 10.1 and 10.2 shall continue beyond
the termination of any other portion of this Agreement.

                                   ARTICLE XI
                              COMPLIANCE WITH LAWS

         GB and KMG each shall comply with all laws, rules and regulations of
governmental authorities regarding or in connection with the performance of
its obligations hereunder.

                                   ARTICLE XII
                            CONFIDENTIAL INFORMATION

         That certain Confidentiality Agreement dated February 3, 2000 between
GB Biosciences and Purchaser shall remain in force and effect in accordance
with its terms notwithstanding any termination of this Agreement.

                                  ARTICLE XIII
                                  FORCE MAJEURE

         13.1 Subject to Section 13.2 neither party shall be subject to any
liability for delay in performance, or nonperformance, as a result of fire,
flood, natural catastrophe, strike, riot, act of government authority or
compliance with government request, act of God, or other contingencies and
circumstances beyond its reasonable control interfering with the production,
supply or transportation of the materials covered by this Agreement (including
any raw materials and energy sources) or used in connection therewith. Each
party shall give the other party prompt written notice of any occurrence of an
event of force majeure, the nature thereof, and the extent to which the
affected party will be unable to fully perform its obligations hereunder. Each
party further agrees to use all reasonable efforts to correct the condition as
quickly as possible. If such period of force majeure continues for a period of
thirty (30) days, the party not experiencing the event of force majeure may
terminate this Agreement by giving the other party at least ten (10) days
prior written notice thereof.

         13.2 Notwithstanding Section 13.1, neither party shall be excused for
delay in performance, or nonperformance, by reason of events of force majeure
for more than fifteen (15) days in any calendar year. Upon the termination of
force majeure events, the party not claiming an excuse by reason of such force
majeure events may, at its option, either (i) cancel quantities from this
Agreement not shipped due to the force majeure events without affecting the
balance of this Agreement, or (ii) extend this Agreement one day for each day
that performance is suspended due to force majeure events.

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                                   ARTICLE XIV
                              TERM AND TERMINATION

         14.1 Unless otherwise terminated as provided herein, the term
("Term") of this Agreement shall begin on the date of this Agreement and shall
end on June 30, 2001.

         14.2 Notwithstanding Section 13.1, this Agreement may be terminated
(a) by either party at any time on the other party's breach of the material
terms of this Agreement by giving the breaching party at least sixty (60)
days' prior written notice thereof, provided that such breach is not cured to
the non-breaching party's reasonable satisfaction within such sixty (60) day
notice period; (b) by the mutual written agreement of the parties; or (c) by
either party in the event that the other party becomes insolvent, or generally
unable to pay its debts as they become due or shall become the subject of a
bankruptcy, conservatorship, receivership or similar proceeding, or shall make
a general assignment for the benefit of its creditors.

         14.3 In the event of any termination hereof, KMG shall pay GB for any
raw materials or Packaging Components purchased for KMG prior to the date of
termination which cannot be returned to the vendor or immediately used by GB
for other products handled by GB, as well as for any other costs incurred by
GB with regard to the preparing for or undertaking any services hereunder.

                                   ARTICLE XV
                                   ASSIGNMENT

         15.1 Neither party may assign its rights or delegate its performance
hereunder, whether by operation of law or otherwise, without the prior written
consent of the other party, which consent shall not be unreasonably withheld;
and any attempted assignment or delegation or transfer without such consent
shall be void. Notwithstanding the foregoing, or any other provision of this
Agreement, KMG acknowledges that the parent company of GB has announced plans
to merge with the agrochemicals business of Novartis AG to form Syngenta AG.
The parties acknowledge that if, following completion of Syngenta transaction,
the Syngenta group internally reorganizes, then this Agreement may be assigned
by GB to a reorganized affiliate with notice to, but without the prior written
consent of, KMG.

                                   ARTICLE XVI
                                     NOTICES

         16.1 All notices hereunder shall be given in writing by certified or
registered mail, with postage prepaid, addressed to each of the parties hereto
as its address set

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forth below, or at such other address as may be specified in writing by such
party. Any notice thus given shall be deemed effective on the date of mailing:

If to GB:
                  GB Biosciences Corporation
                  1800 Concord Pike
                  Wilmington, DE 19850
                  Attn.: Plant Manager
                  Fax: 302-886-1552
                  Phone: 302-886-1000

If to KMG:

                  KMG-Bernuth, Inc.
                  10611 Harwin, Suite 402
                  Houston, Texas 77035
                  Attention: President
                  Fax: 713-988-9298
                  Phone: 713-988-9252

                                  ARTICLE XVII
                                  CHOICE OF LAW

         17.1 This Agreement shall be governed by and interpreted under the
laws of the State of Delaware, without regard to its principles of conflict of
law.

                                  ARTICLE XVIII
                               DISPUTE RESOLUTION

         18.1 If any dispute arises in connection with this Agreement, the
parties agree to discuss such dispute in good faith and attempt to resolve it
without recourse to the formal dispute resolution mechanism provided in
Section 18.2.

         18.2 After discussions provided in Section 18.1, either party may
provide written notice to the other party that a dispute has arisen to be
resolved through the mechanism set forth in this Section 18.2. Upon issuance
and receipt of such notice, GB and KMG, acting through GB's designated
representative and KMG's designated representative respectively, in good faith
shall strive to resolve any such noticed dispute; those representatives may
agree to retain jointly an independent mediator to assist in resolving the
dispute. If, however, such representatives of GB and KMG fail for any reason
to resolve the dispute within ninety (90) days after the date of the

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written notice of dispute resolution, then and only then shall the parties be
free to pursue their remedies at law or in equity; provided, however, that the
parties shall be free at any and all times to seek injunctive relief,
regardless of whether they have availed themselves of the dispute resolution
process set forth in Section 18.1 and 18.2

                                   ARTICLE XIX
                                  MISCELLANEOUS

         19.1 This Agreement constitutes the full understanding of the
parties, a complete allocation of risk KMG between them and a complete and
exclusive statement of the terms and conditions of their agreement relating to
the manufacturing, purchase and sale of the Technical Product, Formulated
Product and the packaging of the Formulated Product hereunder and supersede
any and all prior agreements, whether written or oral, that may exist between
the parties. Except as provided otherwise in this Agreement, no conditions,
usage of trade, course of dealing or performance, understanding or agreement
purporting to modify, vary, explain or supplement the terms or conditions of
this Agreement shall be binding unless hereafter made in writing and signed by
the parties to be bound, and no modification shall be effected by the
acknowledgment or acceptance of purchase order or shipping instruction forms
containing terms or conditions at variance with or in addition to those set
forth in this Agreement. No waiver by either party with respect to any breach
or default or of any right or remedy and no course of dealing, shall be deemed
to constitute a continuing waiver of any other breach or default or of any
other right or remedy, unless such waiver be expressed in writing signed by
the parties to be bound.

         19.2 Section headings as to the contents of particular sections
(Articles) are for convenience only and are in no way to be construed as part
of this Agreement or as a limitation of the scope of the particular sections
(Articles) to which they refer.

         19.3 All provisions of this Agreement are severable and any provision
which may be prohibited by law shall be ineffective to the extent of such
prohibition without invalidating the remaining provisions.

         19.4 This Agreement may be executed in counterparts, each of which
shall be deemed an original, but together which shall constitute one and the
same instrument.

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         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their duly authorized representatives all as of the date first
above written.

                                        KMG-BERNUTH, INC.

                                        By:      /s/ David L. Hatcher
                                           ----------------------------------
                                                 David L. Hatcher
                                                 President

                                        GB BIOSCIENCES CORPORATION

                                        By:      /s/ Vincent Pascarelli
                                           ----------------------------------
                                                 Vincent Pascarelli
                                                 Attorney-in-Fact

                                      12<PAGE>

                 MORGAN STANLEY DEAN WITTER SELECT EQUITY TRUST
                      STRATEGIC SMALL-CAP PORTFOLIO 2000-1
                            REFERENCE TRUST AGREEMENT

                  This Reference Trust Agreement dated October 17, 2000 between
DEAN WITTER REYNOLDS INC., as Depositor, and The Chase Manhattan Bank, as
Trustee, sets forth certain provisions in full and incorporates other provisions
by reference to the document entitled "Sears Equity Investment Trust, Trust
Indenture and Agreement" dated January 22, 1991, as amended on March 16, 1993,
July 18, 1995 and December 30, 1997 (the "Basic Agreement"). Such provisions as
are incorporated by reference constitute a single instrument (the "Indenture").

                                WITNESSETH THAT:

                  In consideration of the premises and of the mutual agreements
herein contained, the Depositor and the Trustee agree as follows:

                                       I.

                     STANDARD TERMS AND CONDITIONS OF TRUST

                  Subject to the provisions of Part II hereof, all the
provisions contained in the Basic Agreement are herein incorporated by reference
in their entirety and shall be deemed to be a part of this instrument as fully
and to the same extent as though said provisions had been set forth in full in
this instrument except that the Basic Agreement is hereby amended in the
following manner:

                  A.    Article I, Section 1.01, paragraph (29) defining
                        "Trustee" shall be amended as follows:

                  "'Trustee' shall mean The Chase Manhattan Bank, or any
                  successor trustee appointed as hereinafter provided."

<PAGE>

                  B.    Reference to United States Trust Company of New York in
                        its capacity as Trustee is replaced by The Chase
                        Manhattan Bank throughout the Basic Agreement.

                  C.    Reference to "Dean Witter Select Equity Trust" is
                        replaced by "Morgan Stanley Dean Witter Select Equity
                        Trust".

                  D.    Section 3.01 is amended to substitute the following:

                        SECTION 3.01. INITIAL COST The costs of organizing
                  the Trust and sale of the Trust Units shall, to the extent of
                  the expenses reimbursable to the Depositor provided below, be
                  borne by the Unit Holders, PROVIDED, HOWEVER, that, to the
                  extent all of such costs are not borne by Unit Holders, the
                  amount of such costs not borne by Unit Holders shall be borne
                  by the Depositor and, PROVIDED FURTHER, HOWEVER, that the
                  liability on the part of the Depositor under this section
                  shall not include any fees or other expenses incurred in
                  connection with the administration of the Trust subsequent to
                  the deposit referred to in Section 2.01. Upon notification
                  from the Depositor that the primary offering period is
                  concluded, the Trustee shall withdraw from the Account or
                  Accounts specified in the Prospectus or, if no Account is
                  therein specified, from the Principal Account, and pay to the
                  Depositor the Depositor's reimbursable expenses of organizing
                  the Trust and sale of the Trust Units in an amount certified
                  to the Trustee by the Depositor. If the balance of the
                  Principal Account is insufficient to make such withdrawal, the
                  Trustee shall, as directed by the Depositor, sell Securities
                  identified by the Depositor, or distribute to the Depositor
                  Securities having a value, as determined under Section 4.01 as
                  of the date of distribution, sufficient for such
                  reimbursement. The reimbursement provided for in this section
                  shall be for the account of the Unitholders of record at the
                  conclusion of the primary offering period and shall not be
                  reflected in the computation of the Unit Value prior thereto.
                  As used herein, the Depositor's reimbursable expenses of
                  organizing the Trust and sale of the Trust Units shall include
                  the cost of the initial preparation

<PAGE>

                  and typesetting of the registration statement, prospectuses
                  (including preliminary prospectuses), the indenture, and other
                  documents relating to the Trust, SEC and state blue sky
                  registration fees, the cost of the initial valuation of the
                  portfolio and audit of the Trust, the initial fees and
                  expenses of the Trustee, and legal and other out-of-pocket
                  expenses related thereto, but not including the expenses
                  incurred in the printing of preliminary prospectuses and
                  prospectuses, expenses incurred in the preparation and
                  printing of brochures and other advertising materials and any
                  other selling expenses. Any cash which the Depositor has
                  identified as to be used for reimbursement of expenses
                  pursuant to this Section shall be reserved by the Trustee for
                  such purpose and shall not be subject to distribution or,
                  unless the Depositor otherwise directs, used for payment of
                  redemptions in excess of the per-Unit amount allocable to
                  Units tendered for redemption.

                                       II.

                      SPECIAL TERMS AND CONDITIONS OF TRUST

                  The following special terms and conditions are hereby agreed
to:

                  A. The Trust is denominated Morgan Stanley Dean Witter Select
            Equity Trust Strategic Small-Cap Portfolio 2000-1 (the "Small Cap
            Trust").

                  B. The publicly traded stocks listed in Schedule A hereto are
            those which, subject to the terms of this Indenture, have been or
            are to be deposited in trust under this Indenture.

                  C. The term, "Depositor" shall mean Dean Witter Reynolds Inc.

                  D. The aggregate number of Units referred to in Sections 2.03
            and 9.01 of the Basic Agreement is 25,130 for the Small Cap Trust.

                  E. A Unit is hereby declared initially equal to 1/25,130th
            for the Small Cap Trust.

                  F. The term "In-Kind Distribution Date" shall mean
            December 5, 2001.
<PAGE>

                  G. The term "Record Dates" shall mean January 18, 2002,
            and such other date as the Depositor may direct.

                  H. The term "Distribution Dates" shall mean on or about
            January 25, 2002 and such other date as the Depositor may direct.

                  I. The term "Termination Date" shall mean January 18, 2002.

                  J. The Depositor's Annual Portfolio Supervision Fee shall be a
            maximum of $0.25 per 100 Units.

                  K. The Trustee's annual fee as defined in Section 6.04 of the
            Indenture shall be $0.90 per 100 Units if the greatest number of
            Units outstanding during the period is 10,000,000 or more; $0.96
            per 100 Units if the greatest number of Units outstanding during the
            period is between 5,000,000 and 9,999,999; and $1.00 per 100 Units
            if the greatest number of Units outstanding during the period is
            4,999,999 or less.

                  L. For a Unit Holder to receive an "in-kind" distribution
            during the life of the Trust, such Unit Holder must tender at least
            25,000 Units for redemption. There is no minimum amount of Units
            that a Unit Holder must tender in order to receive an "in-kind"
            distribution on the In-Kind Date or in connection with a rollover.

                  M. Paragraph (b)(ii) of Section 9.03 is amended to provide
            that the period during which the Trustee shall liquidate the Trust
            Securities shall not exceed 30 business days commencing on the first
            business day following the In-Kind Date.

<PAGE>

                  (Signatures and acknowledgments on separate pages)
<PAGE>

                  The Schedule of Portfolio Securities in the prospectus
included in this Registration Statement is hereby incorporated by reference
herein as Schedule A hereto.

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