Exhibit (a)(2)
AGREEMENT AND DECLARATION OF TRUST
of
▇▇▇▇▇▇▇ CAPITAL MUTUAL FUNDS
a Delaware Statutory Trust
(formed as of September 22, 2006)
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AGREEMENT AND DECLARATION OF TRUST
OF
▇▇▇▇▇▇▇ CAPITAL MUTUAL FUNDS
AGREEMENT AND DECLARATION OF TRUST made as of this 22nd day of September, 2006,
by the Trustees hereunder, and by the holders of Shares to be issued by the
Trust hereunder as hereinafter provided.
WITNESSETH:
WHEREAS this Trust is being formed to carry on the business of an open-end
management investment company as defined in the Investment Company Act of 1940;
and
WHEREAS this Trust is authorized to issue its Shares in separate Series, to
divide Shares of any Series into two or more classes, and to issue classes of
any Series, all in accordance with the provisions hereinafter set forth; and
WHEREAS the Trustees have agreed to manage all property coming into their hands
as trustees of a Delaware statutory trust in accordance with the provisions of
the Delaware Statutory Trust Act, as amended from time to time, and the
provisions hereinafter set forth;
NOW, THEREFORE, the Trustees hereby declare that they will hold all cash,
securities and other assets that they may from time to time acquire in any
manner as Trustees hereunder IN TRUST and will manage and dispose of the same
upon the following terms and conditions for the benefit of the holders, from
time to time, of Shares created hereunder as hereinafter set forth.
ARTICLE I.
NAME; OFFICES; REGISTERED AGENT; DEFINITIONS
SECTION 1. NAME. This Trust shall be known as "▇▇▇▇▇▇▇ Capital Mutual Funds,"
and the Board of Trustees shall conduct the business of the Trust under that
name, which name (and the word "Trust" wherever hereinafter used) shall not
refer to the Trustees in their individual capacities or to the officers, agents,
employees or holders of Shares.
SECTION 2. OFFICES OF THE TRUST. The Board may at any time establish offices of
the Trust at any place(s) where the Trust intends to do business.
SECTION 3. REGISTERED AGENT AND REGISTERED OFFICE. The name of the registered
agent of the Trust and the address of the registered office of the Trust are as
set forth in the Trust's Certificate of Trust.
SECTION 4. DEFINITIONS. Whenever used herein, unless otherwise required by the
context or specifically provided:
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(a) "1940 Act" shall mean the Investment Company Act of 1940 and the rules
and regulations thereunder, all as adopted or amended from time to time.
(b) "Affiliate" shall have the same meaning as "affiliated person," as such
term is defined in the 1940 Act when used with reference to a specified Person,
as defined below.
(c) "Board of Trustees" shall mean the governing body of the Trust, which
is comprised of the number of Trustees of the Trust fixed from time to time
pursuant to Article IV hereof, having the powers and duties set forth herein.
(d) "By-Laws" shall mean By-Laws of the Trust, as amended or restated from
time to time in accordance with Article VIII therein. Such By-Laws may contain
any provision not inconsistent with applicable law or this Declaration of Trust,
relating to the governance of the Trust.
(e) "Certificate of Trust" shall mean the certificate of trust of the Trust
to be filed with the office of the Secretary of State of the State of Delaware
as required under the DSTA, to form the Trust, as such certificate shall be
amended or restated from time to time and filed with such office.
(f) "Class" shall mean each class of shares of the Trust or of a Series of
the Trust established and designated under and in accordance with the provisions
of Article III hereof.
(g) "Code" shall mean the Internal Revenue Code of 1986 and the rules and
regulations thereunder, all as adopted or amended from time to time.
(h) "Commission" shall have the meaning given that term in the 1940 Act.
(i) "Declaration of Trust" shall mean this Agreement and Declaration of
Trust, as amended or restated from time to time. This Declaration of Trust,
together with the By-Laws, shall constitute the governing instrument of the
Trust under the DSTA.
(j) "DSTA" shall mean the Delaware Statutory Trust Act (12 Del. C. Sections
3801, et seq.), as amended from time to time.
(k) "General Liabilities" shall have the meaning given it in Article III,
Section 6(b) of this Declaration of Trust.
(l) "Interested Person" shall have the meaning given that term in the 1940
Act.
(m) "Investment Adviser" or "Adviser" shall mean a Person, as defined
below, furnishing services to the Trust pursuant to any investment advisory or
investment management contract described in Article IV, Section 7(a) hereof.
(n) "National Financial Emergency" shall mean the whole or any part of any
period during: (i) which an emergency exists as a result of which disposal by
the Trust of securities or other
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assets owned by the Trust is not reasonably practicable; (ii) which it is not
reasonably practicable for the Trust fairly to determine the net asset value of
its assets; or (iii) such other period as the Commission may by order permit for
the protection of investors.
(o) "Person" shall mean a natural person, partnership, limited partnership,
limited liability company, trust, estate, association, corporation,
organization, custodian, nominee or any other individual or entity in its own or
any representative capacity, in each case, whether domestic or foreign, and a
statutory trust or a foreign statutory or business trust.
(p) "Principal Underwriter" shall have the meaning given that term in the
1940 Act.
(q) "Registration Statement" as of any particular time shall mean the
Registration Statement of the Trust that is effective at such time under the
1940 Act.
(r) "Series" shall mean each Series of Shares established and designated
under and in accordance with the provisions of Article III hereof and shall mean
an entity such as that described in the 1940 Act.
(s) "Shareholder" shall mean a record owner of Shares pursuant to the
By-Laws.
(t) "Shares" shall mean the outstanding shares of beneficial interest into
which the beneficial interest in the Trust shall be divided, from time to time,
and shall include fractional and whole Shares.
(u) "Trust" shall mean the Delaware statutory trust formed pursuant to this
Declaration of Trust and the filing of the Certificate of Trust with the office
of the Secretary of State of the State of Delaware.
(v) "Trust Property" shall mean as of any particular time any and all
property, real or personal, tangible or intangible, which at such time is owned
or held by or for the account of the Trust, or one or more of any Series and
Class thereof, including, without limitation, the rights referenced in Article
X, Section 5 hereof.
(w) "Trustee" or "Trustees" shall mean each Person who signs this
Declaration of Trust as a trustee, and all other Persons who, from time to time,
may be duly elected or appointed, qualified and serving on the Board of Trustees
in accordance with the provisions hereof and the By-Laws, so long as such
signatory or other Person continues in office in accordance with the terms
hereof and the By-Laws. Reference herein to a Trustee or the Trustees shall
refer to such Person or Persons in such Person's or Persons' capacity(ies) as a
trustee or trustees hereunder and under the By-Laws.
(x) "Vote of a majority of the outstanding voting securities" shall have
the meaning provided under Subsection 2(a)(42) of the 1940 Act or any successor
provision thereof, which Subsection, as of the date hereof, provides as follows:
the vote, at a meeting of the Shareholders, (i) of sixty seven percent (67%) or
more of the voting securities present in person or represented by proxy at such
meeting, if the holders of more than fifty percent (50%) of the outstanding
voting securities of the Trust are present or represented by proxy; or (ii) of
more than fifty percent (50%) of the outstanding voting securities
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of the Trust, whichever is the less; provided that, if any matter affects only
the interests of some but not all Series or Classes and only the Shareholders of
such affected Series or Classes shall be entitled to vote on the matter, as
provided in Article III, Section 6(d) hereof, then for purposes of the foregoing
vote, the foregoing respective percentages shall be percentages of the voting
securities of such Series or Classes rather than the voting securities of the
Trust.
ARTICLE II.
PURPOSE OF TRUST
The purpose of the Trust is to conduct, operate and carry on the
business of an open-end management investment company registered under the 1940
Act directly, or if one or more Series is established hereunder, through one or
more Series, investing primarily in securities. In furtherance of the foregoing,
it shall be the purpose of the Trust to do everything necessary, suitable,
convenient or proper for the conduct, promotion and attainment of any businesses
and purposes that at any time may be incidental or may appear conducive or
expedient for the accomplishment of the business of an open-end management
investment company registered under the 1940 Act and which may be engaged in or
carried on by a statutory trust formed under the DSTA. In connection therewith,
the Trust shall have and may exercise all of the powers, rights and privileges
granted to, or conferred by the laws of the State of Delaware upon, a Delaware
statutory trust formed under the DSTA, including, without limitation, the
following powers:
(a) To hold, invest and reinvest its funds, and in connection therewith, to
make any changes in the investment of the assets of the Trust, to hold part or
all of its funds in cash, to hold cash uninvested, and to subscribe for, invest
in, reinvest in, purchase or otherwise acquire, own, hold, pledge, sell, assign,
mortgage, transfer, exchange, distribute, write options on, lend or otherwise
deal in or dispose of contracts for the future acquisition or delivery of fixed
income or other securities, and securities or property of every nature and kind,
including, without limitation, all types of bonds, debentures, stocks, shares,
units of beneficial interest, preferred stocks, negotiable or non-negotiable
instruments, obligations, evidences of indebtedness, money market instruments,
certificates of deposit or indebtedness, bills, notes, mortgages, commercial
paper, repurchase or reverse repurchase agreements, finance paper, bankers'
acceptances, and any options, certificates, receipts, warrants, futures
contracts or other instruments representing rights to receive, purchase or
subscribe for the same, or evidencing or representing any other rights or
interests therein or in any property or assets, and other securities of any
kind, as the foregoing are issued, created, guaranteed, or sponsored by any and
all Persons, including, without limitation, states, territories, and possessions
of the United States and the District of Columbia and any political subdivision,
agency, or instrumentality thereof, any foreign government or any political
subdivision of the U.S. Government or any foreign government, or any
international instrumentality, or by any bank or savings institution, or by any
corporation or organization organized under the laws of the United States or of
any state, territory, or possession thereof, or by any corporation or
organization organized under any foreign law, or in "when issued" contracts for
any such securities;
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(b) To exercise any and all rights, powers and privileges with reference to
or incident to ownership or interest, use and enjoyment of any of such
securities and other instruments or property of every kind and description,
including, but without limitation, the right, power and privilege to own, vote,
hold, purchase, sell, negotiate, assign, exchange, lend, transfer, mortgage,
hypothecate, lease, pledge or write options with respect to or otherwise deal
with, dispose of, use, exercise or enjoy any rights, title, interest, powers or
privileges under or with reference to any of such securities and other
instruments or property, the right to consent and otherwise act with respect
thereto, with power to designate one or more Persons, to exercise any of said
rights, powers, and privileges in respect of any of said instruments, and to do
any and all acts and things for the preservation, protection, improvement and
enhancement in value of any of such securities and other instruments or
property;
(c) To sell, exchange, lend, pledge, mortgage, hypothecate, lease or write
options with respect to or otherwise deal in any property rights relating to any
or all of the assets of the Trust or any Series, subject to any requirements of
the 1940 Act;
(d) To vote or give assent, or exercise any rights of ownership, with
respect to stock or other securities or property; and to execute and deliver
proxies or powers of attorney to such Person or Persons as the Trustees shall
deem proper, granting to such Person or Persons such power and discretion with
relation to securities or property as the Trustees shall deem proper;
(e) To exercise powers and rights of subscription or otherwise which in any
manner arise out of ownership of securities and/or other property;
(f) To hold any security or property in a form not indicating that it is
Trust Property, whether in bearer, unregistered or other negotiable form, or in
its own name or in the name of a custodian or subcustodian or a nominee or
nominees or otherwise or to authorize the custodian or a subcustodian or a
nominee or nominees to deposit the same in a securities depository, subject in
each case to proper safeguards according to the usual practice of investment
companies or any rules or regulations applicable thereto;
(g) To consent to, or participate in, any plan for the reorganization,
consolidation or merger of any corporation or issuer of any security which is
held in the Trust; to consent to any contract, lease, mortgage, purchase or sale
of property by such corporation or issuer; and to pay calls or subscriptions
with respect to any security held in the Trust;
(h) To join with other security holders in acting through a committee,
depositary, voting trustee or otherwise, and in that connection to deposit any
security with, or transfer any security to, any such committee, depositary or
trustee, and to delegate to them such power and authority with relation to any
security (whether or not so deposited or transferred) as the Trustees shall deem
proper, and to agree to pay, and to pay, such portion of the expenses and
compensation of such committee, depositary or trustee as the Trustees shall deem
proper;
(i) To compromise, arbitrate or otherwise adjust claims in favor of or
against the Trust or any matter in controversy, including but not limited to
claims for taxes;
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(j) To enter into joint ventures, general or limited partnerships and any
other combinations or associations;
(k) To endorse or guarantee the payment of any notes or other obligations
of any Person; to make contracts of guaranty or suretyship, or otherwise assume
liability for payment thereof;
(l) To purchase and pay for entirely out of Trust Property such insurance
as the Board of Trustees may deem necessary or appropriate for the conduct of
the business, including, without limitation, insurance policies insuring the
assets of the Trust or payment of distributions and principal on its portfolio
investments, and insurance policies insuring the Shareholders, Trustees,
officers, employees, agents, Investment Advisers, Principal Underwriters, or
independent contractors of the Trust, individually against all claims and
liabilities of every nature arising by reason of holding Shares, holding, being
or having held any such office or position, or by reason of any action alleged
to have been taken or omitted by any such Person as Trustee, officer, employee,
agent, Investment Adviser, Principal Underwriters, or independent contractors,
to the fullest extent permitted by this Declaration of Trust, the By-Laws and by
applicable law;
(m) To adopt, establish and carry out pension, profit-sharing, share bonus,
share purchase, savings, thrift and other retirement, incentive and benefit
plans, trusts and provisions, including the purchasing of life insurance and
annuity contracts as a means of providing such retirement and other benefits,
for any or all of the Trustees, officers, employees and agents of the Trust;
(n) To purchase or otherwise acquire, own, hold, sell, negotiate, exchange,
assign, transfer, mortgage, pledge or otherwise deal with, dispose of, use,
exercise or enjoy, property of all kinds;
(o) To buy, sell, mortgage, encumber, hold, own, exchange, rent or
otherwise acquire and dispose of, and to develop, improve, manage, subdivide,
and generally to deal and trade in real property, improved and unimproved, and
wheresoever situated; and to build, erect, construct, alter and maintain
buildings, structures, and other improvements on real property;
(p) To borrow or raise moneys for any of the purposes of the Trust, and to
mortgage or pledge the whole or any part of the property and franchises of the
Trust, real, personal, and mixed, tangible or intangible, and wheresoever
situated;
(q) To enter into, make and perform contracts and undertakings of every
kind for any lawful purpose, without limit as to amount;
(r) To issue, purchase, sell and transfer, reacquire, hold, trade and deal
in stocks, shares, bonds, debentures and other securities, instruments or other
property of the Trust, from time to time, to such extent as the Board of
Trustees shall, consistent with the provisions of this Declaration of Trust,
determine; and to reacquire and redeem, from time to time, its Shares or, if
any, its bonds, debentures and other securities;
(s) To engage in and to prosecute, defend, compromise, abandon, or adjust,
by arbitration, or otherwise, any actions, suits, proceedings, disputes, claims,
and demands relating to the Trust or
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any Series or Class thereof, and out of the assets of the Trust or a particular
Series or Class, as applicable, to pay or to satisfy any debts, claims or
expenses incurred in connection therewith, including those of litigation, and
such power shall include, without limitation, the power of the Trustees or any
appropriate committee thereof, in the exercise of their or its good faith
business judgment, to dismiss any action, suit, proceeding, dispute, claim, or
demand, derivative or otherwise, brought by any Person, including a Shareholder
in the Shareholder's own name or the name of the Trust, whether or not the Trust
or any of the Trustees may be named individually therein or the subject matter
arises by reason of business for or on behalf of the Trust;
(t) To exercise and enjoy, in Delaware and in any other states,
territories, districts and U.S. dependencies and in foreign countries, all of
the foregoing powers, rights and privileges, and the enumeration of the
foregoing powers shall not be deemed to exclude any powers, rights or privileges
so granted or conferred; and
(u) In general, to carry on any other business in connection with or
incidental to its trust purposes, to do everything necessary, suitable or proper
for the accomplishment of such purposes or for the attainment of any object or
the furtherance of any power hereinbefore set forth, either alone or in
association with others, and to do every other act or thing incidental or
appurtenant to, or growing out of, or connected with, its business or purposes,
objects or powers.
The Trust shall not be limited to investing in obligations maturing
before the possible dissolution of the Trust or one or more of its Series.
Neither the Trust nor the Board of Trustees shall be required to obtain any
court order to deal with any assets of the Trust or to take any other action
hereunder.
The foregoing clauses shall each be construed as purposes, objects and
powers, and it is hereby expressly provided that the foregoing enumeration of
specific purposes, objects and powers shall not be held to limit or restrict in
any manner the powers of the Trust, and that they are in furtherance of, and in
addition to, and not in limitation of, the general powers conferred upon the
Trust by the DSTA and the other laws of the State of Delaware or otherwise; nor
shall the enumeration of one thing be deemed to exclude another, although it be
of like nature, not expressed.
ARTICLE III.
SHARES
SECTION 1. DIVISION OF BENEFICIAL INTEREST.
(a) The beneficial interest in the Trust shall be divided into Shares,
without par value. The number of shares of beneficial interest in the Trust
authorized hereunder, and of each Series and Class as may be established from
time to time, is unlimited. The Board of Trustees may authorize, in accordance
with the 1940 Act, the division of Shares into separate and distinct Series of
Shares and the division of any Series into separate Classes of Shares. The
different Series and Classes shall be established and designated pursuant to
Article III, Section 6 hereof. If no separate Series or Classes of Series shall
be established, the Shares shall have the rights,
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powers and duties provided for herein and in Article III, Section 6 hereof to
the extent relevant and not otherwise provided for herein, and all references to
Series and Classes shall be construed (as the context may require) to refer to
the Trust. The fact that a Series shall have initially been established and
designated without any specific establishment or designation of Classes (i.e.,
that all Shares of such Series are initially of a single Class) shall not limit
the authority of the Board of Trustees to establish and designate separate
Classes of said Series. The fact that a Series shall have more than one
established and designated Class, shall not limit the authority of the Board of
Trustees to establish and designate additional Classes of said Series.
(b) The Board of Trustees shall have the power to issue authorized, but
unissued shares of beneficial interest of the Trust, or any Series and Class
thereof, from time to time, for such consideration paid wholly or partly in
cash, securities or other property as may be determined from time to time by the
Board of Trustees, subject to any requirements or limitations of the 1940 Act.
The Board of Trustees, on behalf of the Trust, may acquire and hold as treasury
shares, reissue for such consideration and on such terms as it may determine, or
cancel, at its discretion from time to time, any Shares reacquired by the Trust.
The Board of Trustees may classify or reclassify any unissued shares of
beneficial interest or any shares of beneficial interest of the Trust or any
Series or Class thereof, that were previously issued and are reacquired, into
one or more Series or Classes that may be established and designated from time
to time. Notwithstanding the foregoing, the Trust and any Series thereof may
acquire, hold, sell and otherwise deal in, for purposes of investment or
otherwise, the Shares of any other Series of the Trust or Shares of the Trust,
and such Shares shall not be deemed treasury shares or cancelled.
(c) Subject to the provisions of Section 6 of this Article III, each Share
shall entitle the holder to voting rights as provided in Article V hereof.
Shareholders shall have no preemptive or other right to subscribe for new or
additional authorized, but unissued Shares or other securities issued by the
Trust or any Series thereof. The Board of Trustees, from time to time, may
divide or combine the Shares of the Trust or any particular Series thereof into
a greater or lesser number of Shares of the Trust or that Series, respectively.
Such division or combination shall not materially change the proportionate
beneficial interests of the holders of Shares of the Trust or that Series, as
the case may be, in the Trust Property at the time of such division or
combination that is held with respect to the Trust or that Series, as the case
may be.
(d) Any Trustee, officer or other agent of the Trust, and any organization
in which any such Person has an economic or other interest, may acquire, own,
hold and dispose of Shares in the Trust or any Series and Class thereof, to the
same extent as if such Person were not a Trustee, officer or other agent of the
Trust; and the Trust or any Series may issue and sell and may purchase such
shares of beneficial interest from any such Person or any such organization,
subject to the limitations, restrictions or other provisions applicable to the
sale or purchase of such shares herein and the 1940 Act.
SECTION 2. OWNERSHIP OF SHARES. The ownership of Shares shall be recorded on the
books of the Trust kept by the Trust or by a transfer or similar agent for the
Trust, which books shall be maintained separately for the Shares of each Series
and Class thereof that has been established and designated. No certificates
certifying the ownership of Shares shall be issued except as the Board of
Trustees may otherwise determine from time to time. The Board of Trustees may
make
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such rules not inconsistent with the provisions of the 1940 Act as the Board
considers appropriate for the issuance of Share certificates, the transfer of
Shares of the Trust and each Series and Class thereof, if any, and similar
matters. The record books of the Trust as kept by the Trust or any transfer or
similar agent, as the case may be, shall be conclusive as to who are the
Shareholders of the Trust and each Series and Class thereof and as to the number
of Shares of the Trust and each Series and Class thereof held from time to time
by each such Shareholder.
SECTION 3. SALE OF SHARES. Subject to the 1940 Act and applicable law, the Trust
may sell its authorized but unissued shares of beneficial interest to such
Persons, at such times, on such terms, and for such consideration as the Board
of Trustees may from time to time authorize. Each sale shall be credited to the
individual purchaser's account in the form of full or fractional Shares of the
Trust or such Series thereof (and Class thereof, if any), as the purchaser may
select, at the net asset value per Share, subject to Section 22 of the 1940 Act,
and the rules and regulations adopted thereunder; provided, however, that the
Board of Trustees, in its sole discretion, may permit the Principal Underwriter
to impose a sales charge upon any such sale. Every Shareholder, by virtue of
having become a Shareholder, shall be deemed to have expressly assented and
agreed to the terms of this Declaration of Trust and to have become bound as a
party hereto.
SECTION 4. STATUS OF SHARES AND LIMITATION OF PERSONAL LIABILITY. Shares shall
be deemed to be personal property giving to Shareholders only the rights
provided in this Declaration of Trust, the By-Laws, and under applicable law.
Ownership of Shares shall not entitle the Shareholder to any title in or to the
whole or any part of the Trust Property or right to call for a partition or
division of the same or for an accounting, nor shall the ownership of Shares
constitute the Shareholders as partners. Subject to Article VIII, Section 1
hereof, the death, incapacity, dissolution, termination, or bankruptcy of a
Shareholder during the existence of the Trust and any Series thereof shall not
operate to dissolve the Trust or any such Series, nor entitle the representative
of any deceased, incapacitated, dissolved, terminated or bankrupt Shareholder to
an accounting or to take any action in court or elsewhere against the Trust, the
Trustees or any such Series, but entitles such representative only to the rights
of said deceased, incapacitated, dissolved, terminated or bankrupt Shareholder
under this Declaration of Trust. Neither the Trust nor the Trustees, nor any
officer, employee or agent of the Trust, shall have any power to bind personally
any Shareholder, nor, except as specifically provided herein, to call upon any
Shareholder for the payment of any sum of money other than such as the
Shareholder may at any time personally agree to pay. Each Share, when issued on
the terms determined by the Board of Trustees, shall be fully paid and
nonassessable. As provided in the DSTA, Shareholders shall be entitled to the
same limitation of personal liability as that extended to stockholders of a
private corporation organized for profit under the General Corporation Law of
the State of Delaware.
SECTION 5. POWER OF BOARD OF TRUSTEES TO MAKE TAX STATUS ELECTION. The Board of
Trustees shall have the power, in its discretion, to make such elections as to
the tax status of the Trust and any Series as may be permitted or required under
the Code, without the vote of any Shareholder.
SECTION 6. ESTABLISHMENT AND DESIGNATION OF SERIES AND CLASSES. The
establishment and designation of any Series or Class thereof shall be effective,
without the requirement of Shareholder approval, upon the adoption of a
resolution by not less than a majority of the then
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Board of Trustees, which resolution shall set forth such establishment and
designation and may provide, to the extent permitted by the DSTA, for rights,
powers and duties of such Series or Class thereof (including variations in the
relative rights and preferences as between the different Series and Classes
thereof) otherwise than as provided herein. Each such resolution shall be
incorporated herein by reference upon adoption. Any such resolution may be
amended by a further resolution of a majority of the Board of Trustees, and if
Shareholder approval would be required to make such an amendment to the language
set forth in this Declaration of Trust, such further resolution shall require
the same Shareholder approval that would be necessary to make such amendment to
the language set forth in this Declaration of Trust. Each such further
resolution shall be incorporated herein by reference upon adoption.
Each Series shall be separate and distinct from any other Series,
separate and distinct records on the books of the Trust shall be maintained for
each Series, and the assets and liabilities belonging to any such Series shall
be held in such separate and distinct records (directly or indirectly, including
through a nominee or otherwise) and accounted for in such separate and distinct
records separately from the assets and liabilities of the Trust or any other
Series. Each Class of a Series shall be separate and distinct from any other
Class of the Series. As appropriate, in a manner determined by the Board of
Trustees, the liabilities belonging to any such Class of the Series shall be
held and accounted for separately from the liabilities of the Trust, the Series
or any other Class of the Series and separate and distinct records on the books
of the Trust for the Class of the Series shall be maintained for this purpose.
Subject to Article II hereof, each such Series shall operate as a separate and
distinct investment medium, with separately defined investment objectives and
policies.
Shares of each Series (and Class thereof, where applicable)
established and designated pursuant to this Section 6, unless otherwise provided
to the extent permitted by the DSTA, in the resolution establishing and
designating such Series or Class, shall have the following rights, powers and
duties:
(a) Assets Held with Respect to a Particular Series. All consideration
received by the Trust for the issue or sale of Shares of a particular Series,
together with all assets in which such consideration is invested or reinvested,
all income, earnings, profits, and proceeds thereof from whatever source
derived, including, without limitation, any proceeds derived from the sale,
exchange or liquidation of such assets, and any funds or payments derived from
any reinvestment of such proceeds in whatever form the same may be, shall
irrevocably be held with respect to that Series for all purposes, subject only
to the rights of creditors with respect to that Series, and shall be so recorded
upon the books of account of the Trust. Such consideration, assets, income,
earnings, profits and proceeds thereof, from whatever source derived, including,
without limitation, any proceeds derived from the sale, exchange or liquidation
of such assets, and any funds or payments derived from any reinvestment of such
proceeds, in whatever form the same may be, are herein referred to as "assets
held with respect to" that Series. In the event that there are any assets,
income, earnings, profits and proceeds thereof, funds or payments which are not
readily identifiable as assets held with respect to any particular Series
(collectively, "General Assets"), the Board of Trustees, or an appropriate
officer as determined by the Board of Trustees, shall allocate such General
Assets to, between or among any one or more of the Series in such manner and on
such basis as the Board of Trustees, in its sole
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discretion, deems fair and equitable, and any General Asset so allocated to a
particular Series shall be held with respect to that Series. Each such
allocation by or under the direction of the Board of Trustees shall be
conclusive and binding upon the Shareholders of all Series for all purposes.
(b) Liabilities Held with Respect to a Particular Series or Class. The
assets of the Trust held with respect to a particular Series shall be charged
with the liabilities, debts, obligations, costs, charges, reserves and expenses
of the Trust incurred, contracted for or otherwise existing with respect to such
Series. Such liabilities, debts, obligations, costs, charges, reserves and
expenses incurred, contracted for or otherwise existing with respect to a
particular Series are herein referred to as "liabilities held with respect to"
that Series. Any liabilities, debts, obligations, costs, charges, reserves and
expenses of the Trust which are not readily identifiable as being liabilities
held with respect to any particular Series (collectively, "General Liabilities")
shall be allocated by the Board of Trustees, or an appropriate officer as
determined by the Board of Trustees, to and among any one or more of the Series
in such manner and on such basis as the Board of Trustees in its sole discretion
deems fair and equitable. Each allocation of liabilities, debts, obligations,
costs, charges, reserves and expenses by or under the direction of the Board of
Trustees shall be conclusive and binding upon the Shareholders of all Series for
all purposes. All Persons who have extended credit that has been allocated to a
particular Series, or who have a claim or contract that has been allocated to
any particular Series, shall be limited exclusively to the assets of that
particular Series as the source of payment of such credit, claim, or contract.
In the absence of an express contractual agreement so limiting the claims of
such creditors, claimants and contract providers, each creditor, claimant and
contract provider shall be deemed nevertheless to have impliedly agreed to such
limitation.
Subject to the right of the Board of Trustees, in its discretion, to
allocate General Liabilities as provided herein, the debts, liabilities,
obligations and expenses incurred, contracted for or otherwise existing with
respect to a particular Series, whether such Series is now authorized and
existing pursuant to this Declaration of Trust or is hereafter authorized and
existing pursuant to this Declaration of Trust, shall be enforceable against the
assets held with respect to that Series only, and not against the assets of any
other Series or the Trust generally and none of the debts, liabilities,
obligations and expenses incurred, contracted for or otherwise existing with
respect to the Trust generally or any other Series thereof shall be enforceable
against the assets held with respect to such Series. Notice of this limitation
on liabilities between and among Series shall be set forth in the Certificate of
Trust to be filed in the Office of the Secretary of State of the State of
Delaware pursuant to the DSTA, and upon the giving of such notice in the
Certificate of Trust, the statutory provisions of Section 3804 of the DSTA
relating to limitations on liabilities between and among Series (and the
statutory effect under Section 3804 of setting forth such notice in the
Certificate of Trust) shall become applicable to the Trust and each Series.
Liabilities, debts, obligations, costs, charges, reserves and expenses
related to the distribution of, and other identified expenses that should or may
properly be allocated to, the Shares of a particular Class may be charged to and
borne solely by such Class. The bearing of expenses solely by a particular Class
of Shares may be appropriately reflected (in a manner determined by the Board of
Trustees) and may affect the net asset value attributable to, and the
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dividend, redemption and liquidation rights of, such Class. Each allocation of
liabilities, debts, obligations, costs, charges, reserves and expenses by or
under the direction of the Board of Trustees shall be conclusive and binding
upon the Shareholders of all Classes for all purposes. All Persons who have
extended credit that has been allocated to a particular Class, or who have a
claim or contract that has been allocated to any particular Class, shall look,
and may be required by contract to look, exclusively to that particular Class
for payment of such credit, claim, or contract.
(c) Dividends, Distributions and Redemptions. Notwithstanding any other
provisions of this Declaration of Trust, including, without limitation, Article
VI hereof, no dividend or distribution including, without limitation, any
distribution paid upon dissolution of the Trust or of any Series with respect
to, nor any redemption of, the Shares of any Series or Class of such Series
shall be effected by the Trust other than from the assets held with respect to
such Series, nor, except as specifically provided in Section 7 of this Article
III, shall any Shareholder of any particular Series otherwise have any right or
claim against the assets held with respect to any other Series or the Trust
generally except, in the case of a right or claim against the assets held with
respect to any other Series, to the extent that such Shareholder has such a
right or claim hereunder as a Shareholder of such other Series. The Board of
Trustees shall have full discretion, to the extent not inconsistent with the
1940 Act, to determine which items shall be treated as income and which items as
capital; and each such determination and allocation shall be conclusive and
binding upon the Shareholders.
(d) Voting. On any matter submitted to a vote of the Shareholders, all
Shares shall be voted separately by individual Series, except: (i) when required
by the 1940 Act, Shares shall be voted in the aggregate and not by individual
Series; and (ii) when the Trustees have determined that the matter affects the
interests of more than one Series, then the Shareholders of all such Series
shall be entitled to vote thereon. The Trustees may also determine that a matter
affects only the interests of one or more Classes of a Series, in which case any
such matter shall be voted on by such Class or Classes.
(e) Equality. Each Share of any particular Series shall be equal to each
other Share of such Series (subject to the rights and preferences with respect
to separate Classes of such Series).
(f) Fractions. A fractional Share of a Series shall carry proportionately
all the rights and obligations of a whole Share of such Series, including rights
with respect to voting, receipt of dividends and distributions, redemption of
Shares and dissolution of the Trust or that Series.
(g) Exchange Privilege. The Board of Trustees shall have the authority to
provide that the holders of Shares of any Series shall have the right to
exchange said Shares for Shares of one or more other Series in accordance with
such requirements and procedures as may be established by the Board of Trustees,
and in accordance with the 1940 Act.
(h) Combination of Series. The Board of Trustees shall have the authority,
without the approval of the Shareholders of any Series unless otherwise required
by applicable law, to combine the assets and liabilities held with respect to
any two or more Series into assets and liabilities held with respect to a single
Series; provided, however, that upon completion of such combination of
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Series, the interest of each Shareholder in the combined assets and liabilities
held with respect to the combined Series shall equal the interest of each such
Shareholder in the aggregate of assets and liabilities held with respect to the
Series that were combined.
(i) Dissolution or Termination. No Shareholder as such shall be subject to
any personal liability whatsoever to any Person in connection with Trust
Property or the acts, obligations or affairs of the Trust. Any particular Series
shall be dissolved upon the occurrence of the applicable dissolution events set
forth in Article VIII, Section 1 hereof. Upon dissolution of a particular
Series, the Trustees shall wind up the affairs of such Series in accordance with
Article VIII, Section 1 hereof and thereafter, rescind the establishment and
designation thereof. The Board of Trustees shall terminate any particular Class
and rescind the establishment and designation thereof upon the vote of the
holders of not less than a majority of the Shares outstanding and entitled to
vote of such Class. In addition, at any time there are no Shares outstanding of
a particular Class, the Board of Trustees may terminate such Class and rescind
the establishment and designation thereof; provided, however, that upon the
rescission of the establishment and designation of any particular Series, every
Class of such Series shall thereby be terminated and its establishment and
designation rescinded. Each resolution of the Board of Trustees pursuant to this
Section 6(i) shall be incorporated herein by reference upon adoption.
SECTION 7. INDEMNIFICATION OF SHAREHOLDERS. No Shareholders as such shall be
subject to any personal liability whatsoever to any Person in connection with
Trust Property or the acts, obligations, or affairs of the Trust. If any
Shareholder or former Shareholder shall be exposed to liability, charged or held
personally liable for any obligation or liability of the Trust, by reason of a
claim or demand relating exclusively to his or her being or having been a
Shareholder of the Trust or a Shareholder of a particular Series thereof, and
not because of such Shareholder's actions or omissions, the Trust (upon proper
and timely request by the Shareholder) shall assume the defense against such
charge and satisfy any judgment or settlement thereon, and such Shareholder or
former Shareholder (or, in the case of a natural Person, his or her heirs,
executors, administrators, or other legal representatives or, in the case of a
corporation or other entity, its corporate or other general successor) shall be
entitled to be held harmless from and indemnified out of the assets of the Trust
or out of the assets of such Series thereof, as the case may be, against all
losses and expenses, including, without limitation, attorneys' fees arising from
such claim or demand; provided, however, such indemnity shall not cover (i) any
taxes due or paid by reason of such Shareholder's ownership of any Shares, or
(ii) expenses charged to a Shareholder pursuant to Article IV, Section 5 hereof.
ARTICLE IV.
THE BOARD OF TRUSTEES
SECTION 1. NUMBER, ELECTION, TERM, REMOVAL AND RESIGNATION.
(a) The initial Board of Trustees shall be comprised of the Trustees
entering into this Declaration of Trust on the date first written above, who
shall hold office until the initial Trustees approve a resolution electing a
Board of Trustees to hold office in accordance with paragraph (c) of this
Section 1. The initial Trustees shall (i) execute and file, or cause to be
filed,
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the Certificate of Trust with the office of the Secretary of State of the State
of Delaware, and (ii) execute a consent or consents in writing to adopt the
By-Laws. Each Trustee shall execute a counterpart to this Declaration of Trust.
In accordance with Section 3801 of the DSTA, each Trustee shall become a Trustee
and be bound by this Declaration of Trust and the By-Laws when such Person signs
this Declaration of Trust as a Trustee and/or is duly elected or appointed,
qualified and serving on the Board of Trustees in accordance with the provisions
hereof and the By-Laws, so long as such signatory or other Person continues in
office in accordance with the terms hereof and the By-Laws.
(b) The number of Trustees constituting the entire Board of Trustees may be
fixed from time to time by the vote of a majority of the then Board of Trustees;
provided, however, that the number of Trustees shall in no event be less than
one (1) nor more than fifteen (15). The number of Trustees shall not be reduced
so as to shorten the term of any Trustee then in office.
(c) Each Trustee shall hold office for the lifetime of the Trust or until
such Trustee's earlier death, resignation, removal, retirement or inability
otherwise to serve, or, if sooner than any of such events, until the next
meeting of Shareholders called for the purpose of electing Trustees or consent
of Shareholders in lieu thereof for the election of Trustees, and until the
election and qualification of his or her successor.
(d) Any Trustee may be removed, with or without cause, by the Board of
Trustees, by action of a majority of the Trustees then in office, or by the
Shareholders, upon the vote of the holders of 75% of the Shares entitled to
vote. Shareholders shall have the power to remove a Trustee only to the extent
provided by the 1940 Act.
(e) Any Trustee may resign at any time by giving written notice to the
secretary of the Trust or to a meeting of the Board of Trustees. Such
resignation shall be effective upon receipt, unless specified to be effective at
some later time.
SECTION 2. TRUSTEE ACTION BY WRITTEN CONSENT WITHOUT A MEETING. To the extent
not inconsistent with the provisions of the 1940 Act, any action that may be
taken at any meeting of the Board of Trustees or any committee thereof may be
taken without a meeting and without prior written notice if a consent or
consents in writing setting forth the action so taken is signed by the Trustees
having not less than the minimum number of votes that would be necessary to
authorize or take that action at a meeting at which all Trustees on the Board of
Trustees or any committee thereof, as the case may be, were present and voted. A
consent transmitted by electronic transmission (as defined in the DSTA) by a
Trustee shall be deemed to be written and signed for purposes of this Section.
All such consents shall be filed with the secretary of the Trust and shall be
maintained in the Trust's records.
SECTION 3. POWERS; OTHER BUSINESS INTERESTS; QUORUM; AND REQUIRED VOTE.
(a) Powers. Subject to the provisions of this Declaration of Trust, the
business of the Trust (including every Series thereof) shall be managed by or
under the direction of the Board of Trustees, and such Board of Trustees shall
have all powers necessary or convenient to carry out that responsibility. The
Board of Trustees shall have full power and authority to do any and all
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acts and to make and execute any and all contracts and instruments that it may
consider necessary or appropriate in connection with the operation and
administration of the Trust (including every Series thereof). The Board of
Trustees shall not be bound or limited by present or future laws or customs with
regard to investments by trustees or fiduciaries, but, subject to the other
provisions of this Declaration of Trust and the By-Laws, shall have full
authority and absolute power and control over the assets and the business of the
Trust (including every Series thereof) to the same extent as if the Board of
Trustees was the sole owner of such assets and business in its own right,
including such authority, power and control to do all acts and things as the
Board of Trustees, in its sole discretion, shall deem proper to accomplish the
purposes of this Trust.
Without limiting the foregoing, the Board of Trustees, subject to the
requisite vote for such actions as set forth in this Declaration of Trust and
the By-Laws, may:
(i) adopt By-Laws not inconsistent with applicable law or this
Declaration of Trust;
(ii) amend, restate and repeal such By-Laws, subject to and in
accordance with the provisions of such By-Laws;
(iii) fill vacancies on the Board of Trustees in accordance with this
Declaration of Trust, the By-Laws and the requirements of the 1940 Act;
(iv) elect and remove such officers and appoint and terminate such
agents as it considers appropriate, in accordance with this Declaration of Trust
and the By-Laws;
(v) establish and terminate one or more committees of the Board of
Trustees pursuant to the By-Laws;
(vi) place Trust Property in custody as required by the 1940 Act,
employ one or more custodians of the Trust Property and authorize such
custodians to employ sub-custodians and to place all or any part of such Trust
Property with a custodian or a custodial system meeting the requirements of the
1940 Act;
(vii) retain a transfer agent, dividend disbursing agent, a
shareholder servicing agent or administrative services agent, or any number
thereof or any other service provider as deemed appropriate;
(viii) provide for the issuance and distribution of Shares or other
securities or financial instruments directly or through one or more Principal
Underwriters or otherwise;
(ix) retain one or more Investment Adviser(s);
(x) reacquire and redeem Shares on behalf of the Trust and transfer
Shares pursuant to applicable law;
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(xi) set record dates for the determination of Shareholders with
respect to various matters, in the manner provided in Article V, Section 4 of
this Declaration of Trust;
(xii) declare and pay dividends and distributions to Shareholders from
the Trust Property, in accordance with this Declaration of Trust and the
By-Laws;
(xiii) establish, designate and redesignate, from time to time, in
accordance with the provisions of Article III, Section 6 hereof, any Series or
Class thereof;
(xiv) hire personnel as staff for the Board of Trustees or, for those
Trustees who are not Interested Persons of the Trust, the Investment Adviser, or
the Principal Underwriter, set the compensation to be paid by the Trust to such
personnel, exercise exclusive supervision of such personnel, and remove one or
more of such personnel, at the discretion of the Board of Trustees;
(xv) retain special counsel, other experts and/or consultants for the
Board of Trustees, for those Trustees who are not Interested Persons of the
Trust, the Investment Adviser, or the Principal Underwriter, and/or for one or
more of the committees of the Board of Trustees, set the compensation to be paid
by the Trust to such special counsel, other experts and/or consultants, and
remove one or more of such special counsel, other experts and/or consultants, at
the discretion of the Board of Trustees;
(xvi) engage in and prosecute, defend, compromise, abandon, or adjust,
by arbitration, or otherwise, any actions, suits, proceedings, disputes, claims,
and demands relating to the Trust or any Series or Class thereof, and out of the
assets of the Trust or a particular Series or Class, as applicable, to pay or to
satisfy any debts, claims or expenses incurred in connection therewith,
including those of litigation, and such power shall include, without limitation,
the power of the Trustees, or any appropriate committee thereof, in the exercise
of their or its good faith business judgment, to dismiss any action, suit,
proceeding, dispute, claim or demand, derivative or otherwise, brought by any
person, including a shareholder in its own name or in the name of the Trust,
whether or not the Trust or any of the Trustees may be named individually
therein or the subject matter arises by reason of business for or on behalf of
the Trust; and
(xvii) in general, delegate such authority as the Board of Trustees
considers desirable to any officer of the Trust, to any committee of the Trust
and to any agent or employee of the Trust or to any such custodian, transfer,
dividend disbursing, shareholder servicing agent, Principal Underwriter,
Investment Adviser, or other service provider, to the extent authorized and in
accordance with this Declaration of Trust, the By-Laws and applicable law.
The powers of the Board of Trustees set forth in this Section 3(a) are
without prejudice to any other powers of the Board of Trustees set forth in this
Declaration of Trust and the By-Laws. Any determination as to what is in the
best interests of the Trust or any Series (or Class) thereof and its
Shareholders made by the Board of Trustees in good faith shall be conclusive. In
construing the provisions of this Declaration of Trust, the presumption shall be
in favor of a grant of power to the Board of Trustees.
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(b) Other Business Interests. The Trustees shall devote to the affairs of
the Trust (including every Series thereof) such time as may be necessary for the
proper performance of their duties hereunder, but neither the Trustees nor the
officers, directors, shareholders, partners or employees of the Trustees, if
any, shall be expected to devote their full time to the performance of such
duties. The Trustees, or any Affiliate, shareholder, officer, director, partner
or employee thereof, or any Person owning a legal or beneficial interest
therein, may engage in, or possess an interest in, any business or venture other
than the Trust or any Series thereof, of any nature and description,
independently or with or for the account of others. None of the Trust, any
Series thereof or any Shareholder shall have the right to participate or share
in such other business or venture or any profit or compensation derived
therefrom.
(c) Quorum and Required Vote. At all meetings of the Board of Trustees, a
majority of the Board of Trustees then in office shall be present in person in
order to constitute a quorum for the transaction of business. A meeting at which
a quorum is initially present may continue to transact business notwithstanding
the departure of Trustees from the meeting, if any action taken is approved by
at least a majority of the required quorum for that meeting. Subject to Article
III, Sections 1 and 6 of the By-Laws, and except as otherwise provided therein
or required by applicable law, the vote of not less than a majority of the
Trustees present at a meeting at which a quorum is present shall be the act of
the Board of Trustees.
SECTION 4. PAYMENT OF EXPENSES BY THE TRUST. Subject to the provisions of
Article III, Section 6 hereof, an authorized officer of the Trust shall pay or
cause to be paid out of the principal or income of the Trust or any particular
Series or Class thereof, or partly out of the principal and partly out of the
income of the Trust or any particular Series or Class thereof, and charge or
allocate the same to, between or among such one or more of the Series or Class
that may be established or designated pursuant to Article III, Section 6 hereof,
as such officer deems fair, all expenses, fees, charges, taxes and liabilities
incurred by or arising in connection with the maintenance or operation of the
Trust or a particular Series or Class thereof, or in connection with the
management thereof, including, but not limited to, the Trustees' compensation
and such expenses, fees, charges, taxes and liabilities associated with the
services of the Trust's officers, employees, Investment Adviser(s), Principal
Underwriter, auditors, counsel, custodian, sub-custodian, transfer agent,
dividend disbursing agent, shareholder servicing agent, and such other agents or
independent contractors and such other expenses, fees, charges, taxes and
liabilities as the Board of Trustees may deem necessary or proper to incur.
SECTION 5. PAYMENT OF EXPENSES BY SHAREHOLDERS. The Board of Trustees shall have
the power, as frequently as it may determine, to cause any Shareholder to pay
directly, in advance or arrears, for charges of the Trust's custodian or
transfer, dividend disbursing, shareholder servicing or similar agent for
services provided to such Shareholder, an amount fixed from time to time by the
Board of Trustees, by setting off such amount due from such Shareholder from the
amount of (i) declared but unpaid dividends or distributions owed such
Shareholder, or (ii) proceeds from the redemption by the Trust of Shares from
such Shareholder pursuant to Article VI hereof.
SECTION 6. OWNERSHIP OF TRUST PROPERTY. Legal title to all of the Trust Property
shall at all times be vested in the Trust, except that the Board of Trustees
shall have the power to cause legal
24
title to any Trust Property to be held by or in the name of any Person as
nominee, on such terms as the Board of Trustees may determine, in accordance
with applicable law.
SECTION 7. SERVICE CONTRACTS.
(a) Subject to this Declaration of Trust, the By-Laws and the 1940 Act, the
Board of Trustees, at any time and from time to time, may contract for exclusive
or nonexclusive investment advisory or investment management services for the
Trust or for any Series thereof with any corporation, trust, association or
other organization, including any Affiliate; and any such contract may contain
such other terms as the Board of Trustees may determine, including without
limitation, delegation of authority to the Investment Adviser to determine from
time to time without prior consultation with the Board of Trustees what
securities and other instruments or property shall be purchased or otherwise
acquired, owned, held, invested or reinvested in, sold, exchanged, transferred,
mortgaged, pledged, assigned, negotiated, or otherwise dealt with or disposed
of, and what portion, if any, of the Trust Property shall be held uninvested and
to make changes in the Trust's or a particular Series' investments, or to engage
in such other activities, including administrative services, as may specifically
be delegated to such party.
(b) The Board of Trustees also, at any time and from time to time, may
contract with any Person, including any Affiliate, appointing it or them as the
exclusive or nonexclusive distributor or Principal Underwriter for the shares of
beneficial interest of the Trust or one or more of the Series or Classes
thereof, or for other securities or financial instruments to be issued by the
Trust, or appointing it or them to act as the administrator, fund accountant or
accounting agent, custodian, transfer agent, dividend disbursing agent and/or
shareholder servicing agent for the Trust or one or more of the Series or
Classes thereof.
(c) The Board of Trustees is further empowered, at any time and from time
to time, to contract with any Persons, including any Affiliates, to provide such
other services to the Trust or one or more of its Series, as the Board of
Trustees determines to be in the best interests of the Trust, such Series and
its Shareholders.
(d) None of the following facts or circumstances shall affect the validity
of any of the contracts provided for in this Article IV, Section 7 or disqualify
any Shareholder, Trustee, employee or officer of the Trust from voting upon or
executing the same, or create any liability or accountability to the Trust, any
Series thereof or the Shareholders; provided that the establishment of and
performance of each such contract is permissible under the 1940 Act, and
provided further that such Person is authorized to vote upon such contract under
the 1940 Act:
(i) the fact that any of the Shareholders, Trustees, employees or
officers of the Trust is a shareholder, director, officer, partner, trustee,
employee, manager, Adviser, Principal Underwriter, distributor, or Affiliate or
agent of or for any Person, or for any parent or Affiliate of any Person, with
which any type of service contract provided for in this Article IV, Section 7
may have been or may hereafter be made, or that any such Person, or any parent
or Affiliate thereof, is a Shareholder or has an interest in the Trust, or
25
(ii) the fact that any Person with which any type of service contract
provided for in this Article IV, Section 7 may have been or may hereafter be
made also has such a service contract with one or more other Persons, or has
other business or interests.
(e) Every contract referred to in this Section 7 is required to comply with
this Declaration of Trust, the By-Laws, the 1940 Act, other applicable law and
any stipulation by resolution of the Board of Trustees.
ARTICLE V.
SHAREHOLDERS' VOTING POWERS AND MEETINGS
SECTION 1. VOTING POWERS. Subject to the provisions of Article III, Section 6
hereof, the Shareholders shall have the power to vote only (i) on such matters
required by this Declaration of Trust, the By-Laws, the 1940 Act, other
applicable law and the Registration Statement of the Trust filed with the
Commission, the registration of which is effective; and (ii) on such other
matters as the Board of Trustees may consider necessary or desirable. Subject to
Article III hereof, the Shareholder of record (as of the record date established
pursuant to Section 4 of this Article V) of each Share shall be entitled to one
vote for each full Share, and a fractional vote for each fractional Share.
Shareholders shall not be entitled to cumulative voting in the election of
Trustees or on any other matter.
SECTION 2. QUORUM AND REQUIRED VOTE.
(a) A majority of the Shares entitled to vote at a Shareholders' meeting,
which are present in person or represented by proxy, shall constitute a quorum
at the Shareholders' meeting, except when a larger quorum is required by this
Declaration of Trust, the By-Laws, or applicable law, in which case such quorum
shall comply with such requirements. When a separate vote by one or more Series
or Classes is required, a majority of the Shares of each such Series or Class
entitled to vote at a Shareholders' meeting of such Series or Class, which are
present in person or represented by proxy, shall constitute a quorum at the
Shareholders' meeting of such Series or Class, except when a larger quorum is
required by this Declaration of Trust, the By-Laws, or applicable law, in which
case such quorum shall comply with such requirements.
(b) Subject to any provision of this Declaration of Trust, the By-Laws, the
1940 Act or other applicable law that requires a different vote: (1) in all
matters other than the election of Trustees, the affirmative "vote of a majority
of the outstanding voting securities" (as defined herein) of the Trust entitled
to vote at a Shareholders' meeting at which a quorum is present, shall be the
act of the Shareholders; and (2) Trustees shall be elected by not less than a
plurality of the votes cast of the holders of Shares entitled to vote present in
person or represented by proxy at a Shareholders' meeting at which a quorum is
present. Pursuant to Article III, Section 6(d) hereof, where a separate vote by
Series and, if applicable, by Class is required, the preceding sentence shall
apply to such separate votes by Series and Class.
(c) Abstentions and broker non-votes will be treated as votes present at a
Shareholders' meeting, but will not be treated as votes cast at such meeting.
Abstentions and broker non-votes,
26
therefore, (i) will be included for purposes of determining whether a quorum is
present; (ii) will have no effect on proposals that require a plurality or any
percentage of votes cast for approval; but (iii) will have the same effect as a
vote "against" on proposals requiring any percentage of the outstanding voting
securities of the Trust, Series or Class, as applicable, for approval.
SECTION 3. SHAREHOLDER ACTION BY WRITTEN CONSENT WITHOUT A MEETING. Any action
that may be taken at any meeting of Shareholders may be taken without a meeting
and without prior notice if a consent or consents in writing setting forth the
action so taken is or are signed by the holders of a majority of the Shares
entitled to vote on such action (or such different proportion thereof as shall
be required by law, this Declaration of Trust or the By-Laws for the approval of
such action), and is/are received by the secretary of the Trust, either: (i) by
the date set by resolution of the Board of Trustees for the Shareholder to vote
on such action; or (ii) if no date is set by resolution of the Board, within 30
days after the record date for such action as determined by reference to Article
V, Section 4(b) hereof. The written consent for any such action may be executed
in one or more counterparts, each of which shall be deemed an original, and all
of which when taken together shall constitute one and the same instrument. A
consent transmitted by electronic transmission (as defined in the DSTA) by a
Shareholder or by a Person or Persons authorized to act for a Shareholder shall
be deemed to be written and signed for purposes of this Section. All such
consents shall be filed with the secretary of the Trust and shall be maintained
in the Trust's records. Any Shareholder that has given a written consent or the
Shareholder's proxyholder or a personal representative of the Shareholder or its
respective proxyholder may revoke the consent by a writing received by the
secretary of the Trust either: (i) before the date set by resolution of the
Board of Trustees for the shareholder vote on such action; or (ii) if no date is
set by resolution of the Board, within 30 days after the record date for such
action as determined by reference to Article V, Section 4(b) hereof.
SECTION 4. RECORD DATES.
(a) For purposes of determining the Shareholders entitled to notice of, and
to vote at, any meeting of Shareholders, the Board of Trustees may fix a record
date, which record date shall not precede the date upon which the resolution
fixing the record date is adopted by the Board of Trustees, and which record
date shall not be more than one hundred and twenty (120) days nor less than ten
(10) days before the date of any such meeting. For purposes of determining the
Shareholders entitled to vote on any action without a meeting, the Board of
Trustees may fix a record date, which record date shall not precede the date
upon which the resolution fixing the record date is adopted by the Board of
Trustees, and which record date shall not be more than ninety (90) days after
the date upon which the resolution fixing the record date is adopted by the
Board of Trustees.
(b) If the Board of Trustees does not so fix a record date:
(i) the record date for determining Shareholders entitled to notice
of, and to vote at, a meeting of Shareholders shall be at the close of business
on the day next preceding the day on which notice is given or, if notice is
waived, at the close of business on the day next preceding the day on which the
meeting is held; and
27
(ii) the record date for determining Shareholders entitled to vote on
any action by consent in writing without a meeting of Shareholders, (1) when no
prior action by the Board of Trustees has been taken, shall be the day on which
the first signed written consent setting forth the action taken is delivered to
the Trust, or (2) when prior action of the Board of Trustees has been taken,
shall be at the close of business on the day on which the Board of Trustees
adopts the resolution taking such prior action.
(c) For the purpose of determining the Shareholders of the Trust or any
Series or Class thereof who are entitled to receive payment of any dividend or
of any other distribution of assets of the Trust or any Series or Class thereof
(other than in connection with a merger, consolidation, conversion, or
reorganization, which is governed by Article VIII of the Declaration of Trust),
the Board of Trustees may:
(i) from time to time fix a record date, which record date shall not
precede the date upon which the resolution fixing the record date is adopted,
and which record date shall not be more than sixty (60) days before the date for
the payment of such dividend and/or such other distribution;
(ii) adopt standing resolutions fixing record dates and related
payment dates at periodic intervals of any duration for the payment of such
dividend and/or such other distribution; and/or
(iii)delegate to an appropriate officer or officers of the Trust the
determination of such periodic record and/or payments dates with respect to such
dividend and/or such other distribution.
Nothing in this Section shall be construed as precluding the Board of
Trustees from setting different record dates for different Series or Classes.
SECTION 5. ADDITIONAL PROVISIONS. The By-Laws may include further provisions for
Shareholders' votes, meetings and related matters.
ARTICLE VI.
NET ASSET VALUE; DISTRIBUTIONS;
REDEMPTIONS; TRANSFERS
SECTION 1. DETERMINATION OF NET ASSET VALUE, NET INCOME AND DISTRIBUTIONS.
(a) Subject to Article III, Section 6 hereof, the Board of Trustees shall
have the power to determine from time to time the offering price for authorized,
but unissued, shares of beneficial interest of the Trust or any Series or Class
thereof, respectively, that shall yield to the Trust or such Series or Class not
less than the net asset value thereof, in addition to any amount of applicable
sales charge to be paid to the Principal Underwriter or the selling broker or
dealer in connection with the sale of such Shares, at which price the Shares of
the Trust or such Series or Class, respectively, shall be offered for sale,
subject to any other requirements or limitations of the 1940 Act.
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(b) Subject to Article III, Section 6 hereof, the Board of Trustees,
subject to the 1940 Act, may prescribe and shall set forth in the By-Laws, this
Declaration of Trust or in a resolution of the Board of Trustees such bases and
time for determining the net asset value per Share of the Trust or any Series or
Class thereof, or net income attributable to the Shares of the Trust or any
Series or Class thereof or the declaration and payment of dividends and
distributions on the Shares of the Trust or any Series or Class thereof, as the
Board of Trustees may deem necessary or desirable, and such dividends and
distributions may vary between the Classes of a Series to reflect differing
allocations of the expenses of the Trust between such Classes to such extent and
for such purposes as the Trustees may deem appropriate.
(c) The Shareholders of the Trust or any Series shall be entitled to
receive dividends and distributions, when, if and as declared by the Board of
Trustees with respect thereto. No Share shall have any priority or preference
over any other Share of the same Series with respect to dividends or
distributions paid in the ordinary course of business or distributions upon
dissolution of the Trust or of such Series made pursuant to Article VIII,
Section 1 hereof. All dividends and distributions shall be made ratably among
all Shareholders of the Trust or a particular Series from the Trust Property
held with respect to the Trust or such Series and Class thereof, respectively,
according to the number of Shares of such Series held of record by such
Shareholders on the record date for any dividend or distribution. Dividends may
be paid in cash or in kind.
(d) Before payment of any dividend there may be set aside out of any funds
of the Trust, or the applicable Series thereof, available for dividends such
sum(s) as the Board of Trustees, from time to time, may, in its absolute
discretion, think proper as a reserve fund to meet contingencies, or for
equalizing dividends, or for repairing or maintaining any property of the Trust,
or any Series thereof, or for such other lawful purpose as the Board of Trustees
shall deem to be in the best interests of the Trust, or the applicable Series,
as the case may be, and the Board of Trustees may abolish any such reserve in
the manner in which it was created.
SECTION 2. REDEMPTIONS AT THE OPTION OF A SHAREHOLDER. Unless otherwise provided
in the Registration Statement of the Trust relating to the Shares, as such
Registration Statement may be amended from time to time:
(a) The Trust shall purchase such Shares as are offered by any Shareholder
for redemption upon the presentation of a proper instrument of transfer together
with a request directed to the Trust or a Person designated by the Trust that
the Trust purchase such Shares and/or in accordance with such other procedures
for redemption as the Board of Trustees may from time to time authorize. If
certificates have been issued to a Shareholder, any request for redemption by
such Shareholder must be accompanied by surrender of any outstanding certificate
or certificates for such Shares in form for transfer, together with such proof
of the authenticity of signatures as may reasonably be required on such Shares
and accompanied by proper stock transfer stamps, if applicable.
(b) The Trust shall pay for such Shares the net asset value thereof
(excluding any applicable redemption fee), in accordance with this Declaration
of Trust, the By-Laws, the 1940 Act and
29
other applicable law. Payments for Shares so redeemed by the Trust shall be made
in cash, except payment for such Shares may, at the option of the Board of
Trustees, or such officer(s) as the Board of Trustees may duly authorize in its
complete discretion, be made in kind or partially in cash and partially in kind.
In case of any payment in kind, the Board of Trustees, or its authorized
officers, shall have absolute discretion as to what security or securities of
the Trust or the applicable Series shall be distributed in kind and the amount
of the same; and the securities shall be valued for purposes of distribution at
the value at which they were appraised in computing the then current net asset
value of the Shares; provided that any Shareholder who cannot legally acquire
securities so distributed in kind by reason of the prohibitions of the 1940 Act
or the provisions of the Employee Retirement Income Security Act of 1974, as
amended, or any other applicable law, shall receive cash. Shareholders shall
bear the expenses of in-kind transactions, including, but not limited to,
transfer agency fees, custodian fees and costs of disposition of such
securities.
(c) Payment by the Trust for such redemption of Shares shall be made by the
Trust to the Shareholder within seven days after the date on which the
redemption request is received in proper form and/or such other procedures
authorized by the Board of Trustees are complied with; provided, however, that
if payment shall be made other than exclusively in cash, any securities to be
delivered as part of such payment shall be delivered as promptly as any
necessary transfers of such securities on the books of the several corporations
whose securities are to be delivered practicably can be made, which may not
necessarily occur within such seven-day period. In no case shall the Trust be
liable for any delay of any corporation or other Person in transferring
securities selected for delivery as all or part of any payment in kind.
(d) The obligations of the Trust set forth in this Section 2 are subject to
the provision that such obligations may be suspended or postponed by the Board
of Trustees (1) during any time the New York Stock Exchange (the "Exchange") is
closed for other than weekends or holidays; (2) if permitted by the rules of the
Commission, during periods when trading on the Exchange is restricted; or (3)
during any National Financial Emergency. The Board of Trustees, in its
discretion, may declare that the suspension relating to a National Financial
Emergency shall terminate, as the case may be, on the first business day on
which the Exchange shall have reopened or the period specified above shall have
expired (as to which, in the absence of an official ruling by the Commission,
the determination of the Board of Trustees shall be conclusive).
(e) The right of any Shareholder of the Trust or any Series or Class
thereof to receive dividends or other distributions on Shares redeemed and all
other rights of such Shareholder with respect to the Shares so redeemed, except
the right of such Shareholder to receive payment for such Shares, shall cease at
the time the purchase price of such Shares shall have been fixed, as provided
above.
SECTION 3. REDEMPTIONS AT THE OPTION OF THE TRUST. At the option of the Board of
Trustees, the Trust may, from time to time, without the vote of the
Shareholders, but subject to the 1940 Act, redeem Shares or authorize the
closing of any Shareholder account, subject to such conditions as may be
established, from time to time, by the Board of Trustees.
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SECTION 4. TRANSFER OF SHARES. Shares shall be transferable in accordance with
the provisions of the By-Laws.
ARTICLE VII.
LIMITATION OF LIABILITY
AND INDEMNIFICATION OF AGENT
SECTION 1. LIMITATION OF LIABILITY.
(a) For the purpose of this Article,
(i) "Agent" means any Person who is or was a Trustee, officer,
employee or other agent of the Trust or is or was serving at the request of the
Trust as a trustee, director, officer, employee or other agent of another
foreign or domestic corporation, partnership, joint venture, trust or other
enterprise;
(ii) "Disinterested Trustee" is one (A) who is not an "Interested
Person" of the Trust (as defined in the 1940 Act, including anyone who has been
exempted from being an "Interested Person" by any rule, regulation or order of
the Commission), and (B) against whom none of such actions, suits or other
Proceedings or another action, suit or other Proceeding on the same or similar
grounds is then or had been pending;
(iii)"Expenses" include without limitation attorneys' fees and any
expenses of establishing a right to indemnification under this Article; and
(iv) "Proceeding" means any threatened, pending or completed action or
proceeding, whether civil, criminal, administrative or investigative.
(b) An Agent, when acting in the Agent's capacity as such, shall be liable
to the Trust and to any Shareholder solely for such Agent's own willful
misfeasance, bad faith, gross negligence or reckless disregard of the duties
involved in the conduct of such Agent (such conduct referred to herein as
"Disqualifying Conduct"), and for nothing else; and, subject to the foregoing, a
Trustee shall not be liable for errors of judgment or mistakes of fact or law.
Subject to the foregoing, and to the fullest extent that limitations on the
liability of Agents are permitted by the DSTA or other applicable law, an Agent
shall not be responsible or liable in any event for any act, omission, neglect
or wrongdoing of any other Agent, and/or of any officer, employee, consultant,
Investment Adviser, Principal Underwriter, administrator, fund accountant or
accounting agent, custodian, transfer agent, dividend disbursing agent and/or
shareholder servicing agent of the Trust.
(c) No Agent, when acting in the Agent's capacity as such, shall be
personally liable to any Person, other than the Trust or a Shareholder to the
extent provided in subsections (b) of this Section 1, for any act, omission or
obligation of the Trust or any Trustee thereof.
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(d) Each Trustee, officer and employee of the Trust shall, in the
performance of his or her duties, be fully and completely justified and
protected with regard to any act or any failure to act resulting from reliance
in good faith upon the books of account or other records of the Trust, upon an
opinion of counsel, or upon reports made to the Trust by any of its officers or
employees or by the Investment Adviser, the Principal Underwriter, any other
Agent, selected dealers, accountants, appraisers or other experts or consultants
selected with reasonable care by the Trustees, officers or employees of the
Trust, regardless of whether such counsel or expert may also be a Trustee. The
officers and Trustees may obtain the advice of counsel or other experts with
respect to the meaning and operation of this Declaration of Trust, the By-Laws,
applicable law and their respective duties as officers or Trustees. No such
officer or Trustee shall be liable for any act or omission in accordance with
such advice, records and/or reports and no inference concerning liability shall
arise from a failure to follow such advice, records and/or reports.
(e) The officers and Trustees shall not be required to give any bond
hereunder, nor any surety if a bond is required by applicable law.
(f) The limitation on liability contained in this Article applies to events
occurring at the time a Person serves as an Agent whether or not such Person is
an Agent at the time of any Proceeding in which liability is asserted.
(g) No amendment or repeal of this Article shall adversely affect any right
or protection of an Agent that exists at the time of such amendment or repeal.
SECTION 2. INDEMNIFICATION.
(a) Indemnification by Trust. The Trust shall indemnify, out of Trust
Property, to the fullest extent permitted under applicable law, any Trustee or
officer of the Trust who was or is a party or is threatened to be made a party
to any Proceeding by reason of the fact that such Person is or was a Trustee or
officer of the Trust, against Expenses, judgments, fines, settlements and other
amounts actually and reasonably incurred in connection with such Proceeding if
such Person acted in good faith or in the case of a criminal proceeding, had no
reasonable cause to believe the conduct of such Person was unlawful. The
termination of any Proceeding by judgment, order or settlement shall not of
itself create a presumption that such Person did not act in good faith or that
such Person had reasonable cause to believe that such Person's conduct was
unlawful.
(b) Exclusion of Indemnification. Notwithstanding any provision to the
contrary contained herein, there shall be no right to indemnification for any
liability arising by reason of the Disqualifying Conduct of the Trustee or
officer of the Trust, and in accordance therewith, no indemnification shall be
provided hereunder to a Trustee or officer of the Trust:
(i) against any liability to the Trust or the Shareholders by reason
of a final adjudication by the court or other body before which the Proceeding
was brought that the Trustee or officer engaged in Disqualifying Conduct;
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(ii) with respect to any matter as to which the Trustee or officer
shall have been finally adjudicated not to have acted in good faith or in the
reasonable belief that the action of the Trustee or officer was in, or not
opposed to, the best interest of the Trust; or
(iii)in the event of a settlement or other disposition not involving a
final adjudication as provided in paragraphs (b)(i) or (b)(ii) above resulting
in a payment by a Trustee or officer, unless there has been a determination that
such Trustee or officer did not engage in Disqualifying Conduct
(A) (by the court or other body approving the settlement or other
disposition or by a reasonable determination, based upon a review of readily
available facts (as opposed to a full trial-type inquiry) that the Trustee or
officer did not engage in such conduct;
(B) by vote of a majority of the Disinterested Trustees acting on
the matter (provided that a majority of the Disinterested Trustees then in
office act on the matter); or
(C) by written opinion of independent legal counsel.
(c) Required Approval. Any indemnification under this Article shall be made
by the Trust if authorized in the specific case on a determination that
indemnification of the Trustee or officer is proper in the circumstances by a
majority vote of Disinterested Trustees then in office, even though such number
of Trustees shall be less than a quorum; a committee of such Trustees designated
by majority vote of such Disinterested Trustees then in office even though such
number of Trustees shall be less than a quorum; or by independent legal counsel
in a written opinion.
(d) Indemnification by Trust of Agents. Agents and employees of the Trust
who are not Trustees or officers of the Trust may be indemnified under the same
standards and procedures described above, at the discretion of the Trustees.
(e) Advancement of Expenses. Expenses incurred by an Agent in defending any
Proceeding may be advanced by the Trust before the final disposition of the
Proceeding on receipt of an undertaking by or on behalf of the Agent to repay
the amount of the advance if it shall be determined ultimately that the Agent is
not entitled to be indemnified as authorized in this Article; provided that
either:
(i) such undertaking is secured by a surety bond or some other
appropriate security or the Trust shall be insured against losses arising out of
any such advances; or
(ii) a majority of the Disinterested Trustees acting on the matter
(provided that a majority of the Disinterested Trustees then in office act on
the matter) or an independent legal counsel in a written opinion, shall
determine, based upon a review of readily available facts (as opposed to a full
trial-type inquiry), that there is reason to believe that the recipient
ultimately will be found entitled to indemnification.
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(f) Other Contractual Rights. Nothing contained in this Article shall
affect any right to indemnification to which Persons may be entitled by
contract, to the extent not inconsistent with applicable law, or otherwise under
law. Nothing contained in this Article shall affect the power of the Trust to
purchase and maintain liability insurance on behalf of any such Person. As used
in this Article, Trustee or officer shall include such Person's heirs, executors
and administrators.
(i) Notwithstanding any provision to the contrary contained herein,
the terms and conditions of any contract entered into between the Trust and any
independent contractor that is or may be deemed an Agent, as a consequence of
providing services or products to the Trust pursuant to such contract, shall
take precedence over the provisions of this Article and govern with respect to
(A) the liability of such independent contractor to the Trust,
any Shareholder or any other Person,
(B) the indemnification of, or advancement of Expenses to, such
independent contractor by the Trust, and
(C) any other contractual rights or obligations of such
independent contractor under such contract
to the extent that the provisions of, and the rights and
obligations under, such contract are in conflict with, or are not addressed by,
the provisions of this Article.
(ii) All Persons extending credit to, contracting with or having any
claim against the Trust shall look only to the assets of the Trust for payment
under such credit, contract or claim; and neither the Shareholders nor the
Trustees, nor any of the Trust's officers, employees or Agents, whether past,
present or future, shall be personally liable therefor. Every obligation,
contract, instrument, certificate, Share, other security of the Trust or
undertaking, and every other act or thing whatsoever executed in connection with
the Trust shall be conclusively presumed to have been executed or done by the
executors thereof only in their capacity as Trustees of the Trust or in their
capacity as officers, employees or Agents of the Trust and not personally.
SECTION 3. INSURANCE. To the fullest extent permitted by applicable law, the
Board of Trustees shall have the authority to purchase, with Trust Property,
insurance for liability and for all Expenses reasonably incurred or paid or
expected to be paid by an Agent in connection with any Proceeding in which such
Agent becomes involved by virtue of such Agent's actions, or omissions to act,
in its capacity or former capacity with the Trust, whether or not the Trust
would have the power to indemnify such Agent against such liability.
SECTION 4. DERIVATIVE ACTIONS. Subject to the requirements set forth in Section
3816 of the DSTA, a Shareholder or Shareholders may bring a derivative action on
behalf of the Trust only if (i) such Shareholder or Shareholders own not less
than 25% of the Shares, and (ii) such Shareholder or Shareholders first make a
pre-suit demand upon the Board of Trustees to bring the subject action unless an
effort to cause the Board of Trustees to bring such action is excused. A demand
on the Board of Trustees shall only be excused if a majority of the Board of
Trustees,
34
or a majority of any committee established to consider the merits of such
action, has a material personal financial interest in the action at issue. A
Trustee shall not be deemed to have a material personal financial interest in an
action or otherwise be disqualified from ruling on a Shareholder demand by
virtue of the fact that such Trustee receives remuneration from his or her
service on the Board of Trustees of the Trust or on the boards of one or more
investment companies with the same or an affiliated Investment Adviser or
Principal Underwriter.
ARTICLE VIII.
CERTAIN TRANSACTIONS
SECTION 1. DISSOLUTION OF TRUST OR SERIES. The Trust and each Series shall have
perpetual existence, except that the Trust (or a particular Series) shall be
dissolved:
(a) With respect to the Trust, (i) upon the vote of the holders of not less
than a majority of the Shares of the Trust entitled to vote, or (ii) at the
discretion of the Board of Trustees, either (A) at any time there are no Shares
outstanding of the Trust, or (B) upon at least thirty (30) days' prior written
notice to the Shareholders of the Trust; or
(b) With respect to a particular Series, (i) upon the vote of the holders
of not less than a majority of the Shares of such Series entitled to vote, or
(ii) at the discretion of the Board of Trustees, either (A) at any time there
are no Shares outstanding of such Series, or (B) upon at least thirty (30) days'
prior written notice to the Shareholders of such Series; or
(c) With respect to the Trust (or a particular Series), upon the occurrence
of a dissolution or termination event pursuant to any other provision of this
Declaration of Trust (including Article VIII Section 2) or the DSTA; or
(d) With respect to any Series, upon any event that causes the dissolution
of the Trust.
Upon dissolution of the Trust (or a particular Series, as the case may
be), the Board of Trustees shall (in accordance with Section 3808 of the DSTA)
pay or make reasonable provision to pay all claims and obligations of the Trust
and/or each Series (or the particular Series, as the case may be), including all
contingent, conditional or unmatured claims and obligations known to the Trust,
and all claims and obligations that are known to the Trust, but for which the
identity of the claimant is unknown. If there are sufficient assets held with
respect to the Trust and/or each Series of the Trust (or the particular Series,
as the case may be), such claims and obligations shall be paid in full and any
such provisions for payment shall be made in full. If there are insufficient
assets held with respect to the Trust and/or each Series of the Trust (or the
particular Series, as the case may be), such claims and obligations shall be
paid or provided for according to their priority and, among claims and
obligations of equal priority, ratably to the extent of assets available
therefor. Any remaining assets (including, without limitation, cash, securities
or any combination thereof) held with respect to the Trust and/or each Series of
the Trust (or the particular Series, as the case
35
may be) shall be distributed to the Shareholders of the Trust and/or each Series
of the Trust (or the particular Series, as the case may be) ratably according to
the number of Shares of the Trust and/or such Series thereof (or the particular
Series, as the case may be) held of record by the several Shareholders, on the
date for such dissolution distribution; provided, however, that if the Shares of
a Series are divided into Classes thereof, any remaining assets (including,
without limitation, cash, securities or any combination thereof) held with
respect to such Series shall be distributed to each Class of such Series
according to the net asset value computed for such Class and within such
particular Class, shall be distributed ratably to the Shareholders of such Class
according to the number of Shares of such Class held of record by the several
Shareholders on the date for such dissolution distribution. Upon the winding up
of the Trust in accordance with Section 3808 of the DSTA and its termination,
any one (1) Trustee shall execute, and cause to be filed, a certificate of
cancellation, with the office of the Secretary of State of the State of Delaware
in accordance with the provisions of Sections 3810, 3811 and 3812 of the DSTA.
SECTION 2. MERGER OR CONSOLIDATION; CONVERSION; REORGANIZATION; TRANSFER OR
CONTINUANCE.
(a) Merger or Consolidation. Pursuant to an agreement of merger or
consolidation, the Board of Trustees, by vote of a majority of the Trustees, may
cause the Trust to merge or consolidate with or into one or more statutory
trusts or "other business entities" (as defined in Section 3801 of the DSTA)
formed or organized or existing under the laws of the State of Delaware or any
other state of the United States or any foreign country or other foreign
jurisdiction. Any such merger or consolidation shall not require the vote of the
Shareholders unless such vote is required by the 1940 Act; provided, however,
that the Board of Trustees shall provide at least thirty (30) days' prior
written notice to the Shareholders of such merger or consolidation. By reference
to Section 3815(f) of the DSTA, any agreement of merger or consolidation
approved in accordance with this Section 2(a) may, without a Shareholder vote,
unless required by the 1940 Act, or any other provision of this Declaration of
Trust or the By-Laws, effect any amendment to this Declaration of Trust or the
By-Laws or effect the adoption of a new governing instrument if the Trust is the
surviving or resulting statutory trust in the merger or consolidation, which
amendment or new governing instrument shall be effective at the effective time
or date of the merger or consolidation. In all respects not governed by the
DSTA, the 1940 Act, or other applicable law, the Board of Trustees shall have
the power to prescribe additional procedures necessary or appropriate to
accomplish a merger or consolidation, including the power to create one or more
separate statutory trusts to which all or any part of the assets, liabilities,
profits or losses of the Trust may be transferred and to provide for the
conversion of Shares into beneficial interests in such separate statutory trust
or trusts. Upon completion of the merger or consolidation, if the Trust is the
surviving or resulting statutory trust, any one (1) Trustee shall execute, and
cause to be filed, a certificate of merger or consolidation in accordance with
Sections 3811, 3812 and 3815 of the DSTA.
(b) Conversion. The Board of Trustees, by vote of a majority of the
Trustees, may cause (i) the Trust to convert to an "other business entity" (as
defined in Section 3801 of the DSTA) as permitted pursuant to Section 3821 of
the DSTA; (ii) the Shares of the Trust or any Series to be converted into
beneficial interests in another statutory trust (or series thereof) created
pursuant to this Section 2 of this Article VIII; or (iii) the Shares to be
exchanged under or pursuant to any state or federal statute to the extent
permitted by law. Any such statutory conversion, Share conversion or Share
exchange shall not require the vote of the Shareholders unless such vote is
36
required by the 1940 Act; provided, however, that the Board of Trustees shall
provide at least thirty (30) days' prior written notice to the Shareholders of
the Trust of any conversion of Shares of the Trust pursuant to Subsections
(b)(i) or (b)(ii) of this Section 2 or exchange of Shares of the Trust pursuant
to Subsection (b)(iii) of this Section 2, and at least thirty (30) days' prior
written notice to the Shareholders of a particular Series of any conversion of
Shares of such Series pursuant to Subsection (b)(ii) of this Section 2 or
exchange of Shares of such Series pursuant to Subsection (b)(iii) of this
Section 2. Upon receipt of the approval necessary to convert the Trust to an
"other business entity" pursuant to Subsection (b)(i) above, any one (1) Trustee
shall execute, and cause to be filed, a certificate of conversion with the
office of the Secretary of State of the State of Delaware in accordance with
Sections 3811, 3812 and 3821 of the DSTA. In all respects not governed by the
DSTA, the 1940 Act, or other applicable law, the Board of Trustees shall have
the power to prescribe additional procedures necessary or appropriate to
accomplish a statutory conversion, Share conversion or Share exchange, including
the power to create one or more separate statutory trusts to which all or any
part of the assets, liabilities, profits or losses of the Trust may be
transferred and to provide for the conversion of Shares of the Trust or any
Series thereof into beneficial interests in such separate statutory trust or
trusts (or series thereof).
(c) Reorganization. The Board of Trustees, by vote of a majority of the
Trustees, may cause the Trust to sell, convey and transfer all or substantially
all of the assets of the Trust ("sale of Trust assets") or all or substantially
all of the assets associated with any one or more Series ("sale of such Series'
assets"), to another trust, statutory trust, partnership, limited partnership,
limited liability company, corporation or other association organized under the
laws of any state, or to one or more separate series thereof, or to the Trust to
be held as assets associated with one or more other Series of the Trust, in
exchange for cash, shares or other securities (including, without limitation, in
the case of a transfer to another Series of the Trust, Shares of such other
Series) with such sale, conveyance and transfer either (a) being made subject
to, or with the assumption by the transferee of, the liabilities associated with
the Trust or the liabilities associated with the Series the assets of which are
so transferred, as applicable, or (b) not being made subject to, or not with the
assumption of, such liabilities. Any such sale, conveyance and transfer shall
not require the vote of the Shareholders, unless such vote is required by the
1940 Act; provided, however, that the Board of Trustees shall provide at least
thirty (30) days' prior written notice to the Shareholders of the Trust of any
such sale of Trust assets, and at least thirty (30) days' prior written notice
to the Shareholders of a particular Series of any sale of such Series' assets.
Following such sale of Trust assets, the Board of Trustees shall distribute such
cash, shares or other securities ratably among the Shareholders of the Trust
(giving due effect to the assets and liabilities associated with and any other
differences among the various Series the assets associated with which have been
so sold, conveyed and transferred, and due effect to the differences among the
various classes within each such Series). Following a sale of such Series'
assets, the Board of Trustees shall distribute such cash, shares or other
securities ratably among the Shareholders of such Series (giving due effect to
the differences among the various classes within each such Series). If all of
the assets of the Trust have been so sold, conveyed and transferred, the Trust
shall be dissolved, and if all of the assets of a Series have been so sold,
conveyed and transferred, such Series shall be dissolved. In all respects not
governed by the DSTA, the 1940 Act or other applicable law, the Board of
Trustees shall have the power to prescribe additional procedures necessary or
appropriate to accomplish such sale, conveyance and transfer, including the
power to create one or more separate statutory trusts to which all or
37
any part of the assets, liabilities, profits or losses of the Trust may be
transferred and to provide for the conversion of Shares into beneficial
interests in such separate statutory trust or trusts.
(d) Transfer or Continuance. Pursuant to Section 3823 of the DSTA, the
Board of Trustees, by vote of a majority of the Trustees, may cause the Trust to
transfer to or domesticate in any jurisdiction, other than any state, and in
connection therewith, may elect to continue the Trust's existence as a statutory
trust in the State of Delaware. Any such transfer, domestication or continuance
shall not require the vote of the Shareholders unless such vote is required by
the 1940 Act; provided, however, that the Board of Trustees shall provide at
least thirty (30) days' prior written notice to the Shareholders of the Trust of
any such transfer, domestication or continuance. Upon receipt of the approval
necessary for such transfer, domestication or continuance, any one (1) Trustee
shall execute, and cause to be filed, a certificate of transfer, if the Trust's
existence as a statutory trust in the State of Delaware is to cease, or a
certificate of transfer and continuance if the Trust's existence as a statutory
trust in the State of Delaware is to continue, in accordance with Sections 3811,
3812 and 3823 of the DSTA.
SECTION 3. MASTER FEEDER STRUCTURE. If permitted by the 1940 Act, the Board of
Trustees, by vote of a majority of the Trustees, and without a Shareholder vote,
may cause the Trust or any one or more Series to convert to a master feeder
structure (a structure in which a feeder fund invests all of its assets in a
master fund, rather than making investments in securities directly) and thereby
cause existing Series of the Trust to either become feeders to a master fund, or
to become master funds to which other funds are feeders.
SECTION 4. ABSENCE OF APPRAISAL OR DISSENTERS' RIGHTS. No Shareholder shall be
entitled, as a matter of right, to relief as a dissenting Shareholder in respect
of any proposal or action involving the Trust or any Series or Class thereof.
ARTICLE IX.
AMENDMENTS
SECTION 1. AMENDMENTS GENERALLY. This Declaration of Trust may be restated
and/or amended at any time by an instrument in writing signed by not less than a
majority of the Board of Trustees and, to the extent required by this
Declaration of Trust or the 1940 Act, by approval of such amendment by the
Shareholders in accordance with Article III, Section 6 hereof and Article V
hereof. Any such restatement and/or amendment hereto shall be effective
immediately upon execution and approval or upon such future date and time as may
be stated therein. The Certificate of Trust shall be restated and/or amended at
any time by the Board of Trustees, without Shareholder approval, to make any
change therein to conform the Certificate of Trust to any amendment in the
Declaration of Trust or By-Laws or to correct any inaccuracy contained in the
Certificate of Trust. Any such restatement and/or amendment of the Certificate
of Trust shall be executed by at least one (1) Trustee and shall be effective
immediately upon its filing with the office of the Secretary of State of the
State of Delaware or upon such future date as may be stated therein.
ARTICLE X.
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MISCELLANEOUS
SECTION 1. REFERENCES; HEADINGS; COUNTERPARTS. In this Declaration of Trust and
in any restatement hereof and/or amendment hereto, references to this
instrument, and all expressions of similar effect to "herein," "hereof' and
"hereunder," shall be deemed to refer to this Declaration of Trust as so
restated and/or amended, rather than the article or section in which such words
appear. Headings are placed herein for convenience of reference only and shall
not be taken as a part hereof or control or affect the meaning, construction or
effect of this instrument. Whenever the singular number is used herein, the same
shall include the plural; and the neuter, masculine and feminine genders shall
include each other, as applicable. Any references herein to specific sections of
the DSTA, the Code or the 1940 Act shall refer to such sections as amended from
time to time or any successor sections thereof. This instrument may be executed
in any number of counterparts, each of which shall be deemed an original, and
such counterparts, together, shall constitute one and the same instrument, which
shall be sufficiently evidenced by any such original counterpart.
SECTION 2. APPLICABLE LAW. This Declaration of Trust is executed by all of the
Trustees and delivered with reference to the DSTA and the laws of the State of
Delaware, and the rights of all parties and the validity and construction of
every provision hereof shall be subject to and construed according to the DSTA
and the laws of the State of Delaware (unless and to the extent otherwise
provided for and/or preempted by the Code, the 1940 Act or other applicable
federal securities laws); provided, however, that there shall not be applicable
to the Trust, the Trustees or this Declaration of Trust: (a) the provisions of
Section 3540 of Title 12 of the Delaware Code, or (b) any provisions of the laws
(statutory or common) of the State of Delaware (other than the DSTA) pertaining
to trusts that are inconsistent with the rights, duties, powers, limitations or
liabilities of the Trustees set forth or referenced in this Declaration of
Trust. The Trust shall be a Delaware statutory trust pursuant to the DSTA, and
without limiting the provisions hereof, the Trust may exercise all powers that
are ordinarily exercised by a statutory trust.
SECTION 3. PROVISIONS IN CONFLICT WITH LAW OR REGULATIONS.
(a) The provisions of this Declaration of Trust are severable, and if the
Board of Trustees shall determine, with the advice of counsel, that any of such
provisions is in conflict with the 1940 Act, the Code, the DSTA, or with other
applicable laws and regulations, the conflicting provision shall be deemed not
to have constituted a part of this Declaration of Trust from the time when such
provisions became inconsistent with such laws or regulations; provided, however,
that such determination shall not affect any of the remaining provisions of this
Declaration of Trust or render invalid or improper any action taken or omitted
prior to such determination.
(b) If any provision of this Declaration of Trust shall be held invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall
attach only to such provision in such jurisdiction and shall not in any manner
affect such provision in any other jurisdiction or any other provision of this
Declaration of Trust in any jurisdiction.
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SECTION 4. STATUTORY TRUST ONLY. It is the intention of the Trustees to create
hereby a statutory trust pursuant to the DSTA, and thereby to create the
relationship of trustee and beneficial owner within the meaning of the DSTA
between, respectively, the Trustees and each Shareholder. It is not the
intention of the Trustees to create a general or limited partnership, limited
liability company, joint stock association, corporation, bailment, or any form
of legal relationship other than a statutory trust pursuant to the DSTA, except
to the extent such trust (or any Series and Class thereof) is deemed to
constitute a partnership or an association taxable as a corporation under the
Code and applicable by-laws. Nothing in this Declaration of Trust shall be
construed to make the Shareholders, either by themselves or with the Trustees,
partners or members of a joint stock association, except to the extent such
trust (or Series and Class thereof) is deemed to constitute a partnership or an
association taxable as a corporation under the Code and applicable state tax
laws. Nothing in this Declaration of Trust shall be construed to make the
Shareholders, either by themselves or with the Trustees, partners or members of
a joint stock association except to the extent such Shareholders are deemed to
be partners or shareholders under the Code and applicable state tax laws.
[THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]
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IN WITNESS WHEREOF, the Trustees named below do hereby make and enter into this
Agreement and Declaration of Trust as of the date first written above.
/s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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THE PRINCIPAL PLACE OF BUSINESS OF THE TRUST IS
▇▇▇▇▇▇▇ Capital Mutual Funds
▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
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