EXHIBIT 8(x)
FORM OF AGREEMENT AND PLAN OF REORGANIZATION
THIS AGREEMENT AND PLAN OF REORGANIZATION (the "Agreement") is made as
of this ____ day of ________, 200_, by and among Janus Investment Fund, a
Massachusetts business trust, with its principal place of business at ▇▇▇
▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇ (the "Acquiring Trust"), with
respect to Janus Small Cap Value Fund, a newly created shell series of the
Acquiring Trust (the "Acquiring Fund"), and ▇▇▇▇▇▇ Omni Investment Trust, a
Massachusetts business trust, with its principal place of business at ▇▇▇
▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇ (the "Selling Trust"), with respect
to ▇▇▇▇▇▇ Small Cap Value Fund, a series of the Trust (the "Selling Fund"), and
Janus Capital Management LLC ("Janus"), the investment adviser to the Acquiring
Fund (for purposes of paragraph 9.1 of the Agreement only).
The Selling Fund intends to change its identity through a
"reorganization" within the meaning of Section 368(a)(1)(F) of the United States
Internal Revenue Code of 1986, as amended (the "Code"), and the Treasury
Regulations promulgated thereunder. The reorganization will consist of: (i) the
transfer of all of the assets of the Selling Fund in exchange for full and
fractional Investor and Institutional Shares of beneficial interest, $.01 par
value per share, of the Acquiring Fund ("Acquiring Fund Shares") to be issued by
the Acquiring Trust, having an aggregate number equal to the respective number
of Investor and Institutional Shares of the Selling Fund then outstanding, and
having an aggregate net asset value equal to the net asset value of the Selling
Fund; (ii) the assumption by the Acquiring Fund of all of the liabilities of the
Selling Fund; and (iii) the distribution, after the Closing Date (as defined in
paragraph 3.1) hereinafter referred to, of the Acquiring Fund Shares to the
shareholders of the Selling Fund and the termination, dissolution and complete
liquidation of the Selling Fund as provided herein, all upon the terms and
conditions set forth in this Agreement (the "Reorganization").
WHEREAS, the Acquiring Fund and the Selling Fund are separate series of
the Acquiring Trust and Selling Trust, respectively, and the Acquiring Trust and
the Selling Trust are open-end, registered management investment companies and
the Selling Fund owns securities that generally are assets of the character in
which the Acquiring Fund is permitted to invest;
WHEREAS, the Acquiring Fund was established by the Acquiring Trust for
the purpose of acquiring the assets of the Selling Fund, and is authorized to
issue its shares of beneficial interest (although none have been issued);
WHEREAS, the Trustees of the Acquiring Trust have determined that the
Reorganization, with respect to the Acquiring Fund, is in the best interests of
the Acquiring Fund;
WHEREAS, the Trustees of the Selling Trust have determined that the
Reorganization, with respect to the Selling Fund, is in the best interests of
the Selling Fund and that the interests of the existing shareholders of the
Selling Fund will not be diluted as a result of the Reorganization;
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NOW, THEREFORE, in consideration of the premises and of the covenants
and agreements hereinafter set forth, the parties hereto covenant and agree as
follows:
ARTICLE I
TRANSFER OF ASSETS OF THE SELLING FUND IN EXCHANGE FOR ACQUIRING
FUND SHARES AND THE ASSUMPTION OF THE SELLING FUND'S LIABILITIES
AND LIQUIDATION OF THE SELLING FUND
1.1 THE EXCHANGE. Subject to the terms and conditions contained herein
and on the basis of the representations and warranties contained herein, the
Selling Fund agrees to transfer all of its assets, as set forth in paragraph
1.2, to the Acquiring Fund. In exchange, the Acquiring Fund agrees: (i) to
deliver to the Selling Fund the number of full and fractional Acquiring Fund
Shares equivalent in number and in value to the Selling Fund shares outstanding
immediately prior to the closing (the "Closing") provided for in paragraph 3.1;
and (ii) to assume all of the liabilities of the Selling Fund. Such transactions
shall take place at the Closing.
1.2 ASSETS TO BE ACQUIRED. The assets of the Selling Fund to be
acquired by the Acquiring Fund shall consist of all property, including, without
limitation, all cash, securities, commodities, interests in futures and
dividends or interest receivables, owned by the Selling Fund and any deferred or
prepaid expenses shown as an asset on the books of the Selling Fund on the
Closing Date.
The Selling Fund has provided the Acquiring Fund with its most recent
audited financial statements, which contain a list of all of the Selling Fund's
assets as of the date of such statements. The Selling Fund hereby represents
that, as of the date of the execution of this Agreement, there have been no
changes in its financial position as reflected in such financial statements
other than those occurring in the ordinary course of business in connection with
the purchase and sale of securities, the issuance and redemption of Selling Fund
shares and the payment of normal operating expenses, dividends and capital gains
distributions.
1.3 LIABILITIES TO BE ASSUMED. The Acquiring Fund shall assume all of
the Selling Fund's liabilities, debts, obligations and duties of whatever kind
or nature, whether absolute, accrued, contingent or otherwise, whether or not
arising in the ordinary course of business, whether or not determinable at the
Closing Date and whether or not specifically referred to in this Agreement. The
Selling Fund's liabilities specifically include obligations to the independent
Trustees of the Selling Trust under any deferred compensation plan.
1.4 STATE FILINGS. Prior to the Closing Date, the Selling Trust shall
make any filings with the Commonwealth of Massachusetts that may be required
under the laws of the Commonwealth of Massachusetts, effective as of the Closing
Date.
1.5 LIQUIDATION AND DISTRIBUTION. On or as soon after the Closing Date
as is conveniently practicable, but in no event later than 12 months after the
Closing Date (the "Liquidation Date"): (a) the Selling Fund will distribute in
complete liquidation of the Selling Fund, pro rata to its shareholders of
record, determined as of the close of business on the Valuation Date (as defined
in paragraph 2.1) (the "Selling Fund Shareholders"), all of the
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Acquiring Fund Shares received by the Selling Fund pursuant to paragraph 1.1;
and (b) the Selling Fund will thereupon proceed to dissolve and terminate as set
forth in paragraph 1.9 below. Such distribution will be accomplished by the
transfer of Acquiring Fund Shares credited to the account of the Selling Fund on
the books of the Acquiring Fund to open accounts on the share records of the
Acquiring Fund in the name of the Selling Fund Shareholders and representing the
respective pro rata number of Acquiring Fund Shares due such shareholders. The
Acquiring Fund shall assume the share records received from the Selling Fund are
valid, current and accurate and that such transfers to shareholders are valid,
proper and correct. All issued and outstanding shares of the Selling Fund will
simultaneously be canceled on the books of the Selling Fund. The Acquiring Fund
shall not issue certificates representing Acquiring Fund Shares in connection
with such transfer.
1.6 OWNERSHIP OF SHARES. Ownership of Acquiring Fund Shares will be
shown on the books of the Acquiring Fund's transfer agent. Shares of the
Acquiring Fund will be issued simultaneously to the Selling Fund, in an amount
equal in number and in value to the aggregate net asset value of the Selling
Fund's shares, to be distributed to Selling Fund Shareholders. Shareholders of
record of Investor Shares of the Selling Fund will receive Investor Shares of
the Acquiring Fund and shareholders of Institutional Shares of the Selling Fund
will receive Institutional Shares of the Acquiring Fund.
1.7 TRANSFER TAXES. Any transfer taxes payable upon the issuance of
Acquiring Fund Shares in a name other than the registered holder of the Selling
Fund shares on the books of the Selling Fund as of that time shall, as a
condition of such issuance and transfer, be paid by the person to whom such
Acquiring Fund Shares are to be issued and transferred.
1.8 REPORTING RESPONSIBILITY. Any reporting responsibility of the
Selling Fund, including, without limitation, the responsibility for filing of
regulatory reports, tax returns or other documents with the Securities and
Exchange Commission (the "Commission"), any state securities commission and any
federal, state or local tax authorities or any other relevant regulatory
authority, is and shall remain the responsibility of the Selling Fund.
1.9 TERMINATION AND DISSOLUTION. The Selling Fund shall be terminated
and dissolved promptly following the Closing Date and the making of all
distributions pursuant to paragraph 1.5.
1.10 BOOKS AND RECORDS. All books and records of the Selling Fund,
including all books and records required to be maintained under the Investment
Company Act of 1940 (the "1940 Act") and the rules and regulations thereunder,
shall be available to the Acquiring Fund from and after the Closing Date and
shall be turned over to the Acquiring Fund as soon as practicable following the
Closing Date.
ARTICLE II
VALUATION
2.1 VALUATION OF ASSETS. The value of the Selling Fund's assets to be
acquired by the Acquiring Fund hereunder shall be the value of such assets as of
the close of
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regular trading on the New York Stock Exchange ("NYSE") on the business day
immediately prior to the Closing Date (such time and date being hereinafter
called the "Valuation Date"), using the valuation procedures set forth in the
trust instrument of the Selling Trust and the Selling Fund's then-current
prospectus and statement of additional information or such other valuation
procedures as shall be mutually agreed upon by the parties.
2.2 VALUATION OF SHARES. The net asset value per share of Acquiring
Fund Shares shall be the net asset value per share of the Selling Fund on the
Valuation Date, using the valuation procedures set forth in the Selling Trust's
trust instrument and the Selling Fund's then-current prospectus and statement of
additional information or such other valuation procedures as shall be mutually
agreed upon by the parties.
2.3 SHARES TO BE ISSUED. The number of Acquiring Fund Shares to be
issued (including fractional shares, if any) in exchange for the Selling Fund's
assets shall be equal to the number of Selling Fund shares outstanding on the
Valuation Date.
2.4 DETERMINATION OF VALUE. All computations of value shall be made by
or under the direction of each Fund's respective accounting agent, if
applicable, in accordance with its regular practice and the requirements of the
1940 Act.
ARTICLE III
CLOSING AND THE CLOSING DATE
3.1 CLOSING DATE. The Closing shall occur on March 24, 2003, or such
other date(s) as the parties may agree to in writing (the "Closing Date").
Unless otherwise provided, all acts taking place at the Closing shall be deemed
to take place as of immediately after the close of regular trading on the
Valuation Date. The Closing shall be held at the offices of Vedder, Price,
▇▇▇▇▇▇▇ & Kammholz, ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, or at
such other time and/or place as the parties may agree.
3.2 CUSTODIAN'S CERTIFICATE. The Selling Fund shall cause its
Custodian, State Street Bank and Trust Company (the "Custodian"), to deliver at
the Closing a certificate of an authorized officer stating that: (a) the Selling
Fund's portfolio securities, cash and any other assets have been delivered in
proper form to the Acquiring Fund on the Closing Date; and (b) all necessary
taxes including all applicable federal and state stock transfer stamps, if any,
have been paid, or provision for payment shall have been made, in conjunction
with the delivery of portfolio securities by the Selling Fund.
3.3 EFFECT OF SUSPENSION IN TRADING. In the event that, on the
Valuation Date, either: (a) the NYSE or another primary exchange on which the
portfolio securities of the Acquiring Fund or the Selling Fund are purchased or
sold shall be closed to trading or trading on such exchange shall be restricted;
or (b) trading or the reporting of trading on the NYSE or elsewhere shall be
disrupted so that accurate appraisal of the value of the net assets of the
Acquiring Fund or the Selling Fund is impracticable, the Valuation Date shall be
postponed until the first business day after the day when trading is fully
resumed and reporting is restored.
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3.4 TRANSFER AGENT'S CERTIFICATE. The Selling Fund shall cause its
transfer agent, DST Systems, Inc., to deliver at the Closing a certificate of an
authorized officer stating that its records contain the names and addresses of
Selling Fund Shareholders as of the Closing Date, and the number and percentage
ownership of outstanding shares owned by each such shareholder immediately prior
to the Closing. The Acquiring Fund shall issue and deliver or cause Janus
Services LLC, its transfer agent, to issue and deliver a confirmation evidencing
Acquiring Fund Shares to be credited on the Closing Date to the Secretary of the
Selling Trust or provide evidence satisfactory to the Selling Fund that the
Acquiring Fund Shares have been credited to the Selling Fund's account on the
books of the Acquiring Fund. At the Closing, each party shall deliver to the
other such bills of sale, checks, assignments, share certificates, receipts and
other documents, if any, as such other party or its counsel may reasonably
request.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
4.1 REPRESENTATIONS OF THE SELLING FUND. The Selling Trust, on behalf
of the Selling Fund, represents and warrants to the Acquiring Trust, on behalf
of the Acquiring Fund, as follows:
(a) The Selling Fund is a legally designated, separate series
of a business trust that is duly organized, validly existing and in good
standing under laws of the Commonwealth of Massachusetts.
(b) The Selling Trust is registered as an open-end management
investment company under the 1940 Act, and the Selling Trust's registration with
the Commission as an investment company under the 1940 Act is in full force and
effect.
(c) The current prospectus and statement of additional
information of the Selling Fund conform in all material respects to the
applicable requirements of the Securities Act of 1933 (the "1933 Act") and the
1940 Act and the rules and regulations thereunder and do not include any untrue
statement of a material fact or omit to state any material fact required to be
stated or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.
(d) The Selling Fund is not in violation of, and the
execution, delivery and performance of this Agreement (subject to shareholder
approval) will not result in the violation of, any provision of the Selling
Trust's trust instrument or bylaws or of any material agreement, indenture,
instrument, contract, lease or other undertaking to which the Selling Fund is a
party or by which it is bound.
(e) The Selling Fund has no material contracts or other
commitments (other than this Agreement) that will be terminated with liability
to it before the Closing Date, except for liabilities, if any, to be discharged
or reflected in the Statement of Assets and Liabilities as provided in paragraph
1.2 hereof.
(f) Except as otherwise disclosed in writing to and accepted
by the Acquiring Fund, no litigation, administrative proceeding or investigation
of or before any court or
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governmental body is presently pending or to its knowledge threatened against
the Selling Fund or any of its properties or assets that, if adversely
determined, would materially and adversely affect its financial condition, the
conduct of its business or the ability of the Selling Fund to carry out the
transactions contemplated by this Agreement. The Selling Fund knows of no facts
that might form the basis for the institution of such proceedings and is not a
party to or subject to the provisions of any order, decree or judgment of any
court or governmental body that materially and adversely affects its business or
its ability to consummate the transactions contemplated herein.
(g) The financial statements of the Selling Fund as of
September 30, 2002 and for the fiscal year then ended have been prepared in
accordance with generally accepted accounting principles and have been audited
by independent auditors, and such statements (copies of which have been
furnished to the Acquiring Fund) fairly reflect the financial condition of the
Selling Fund as of September 30, 2002, and there are no known contingent
liabilities of the Selling Fund as of such date that are not disclosed in such
statements.
(h) Since the date of the financial statements referred to in
paragraph (g) above, there have been no material adverse changes in the Selling
Fund's financial condition, assets, liabilities or business (other than changes
occurring in the ordinary course of business), or any incurrence by the Selling
Fund of indebtedness maturing more than one year from the date such indebtedness
was incurred, except as otherwise disclosed to and accepted by the Acquiring
Fund. For the purposes of this paragraph (h), a decline in the net asset value
of the Selling Fund shall not constitute a material adverse change.
(i) All federal and other tax returns and reports of the
Selling Fund required by law to be filed have been filed, and all federal and
other taxes shown due on such returns and reports have been paid, or provision
shall have been made for the payment thereof. To the best of the Selling Fund's
knowledge, no such return is currently under audit, and no assessment has been
asserted with respect to such returns.
(j) All issued and outstanding shares of the Selling Fund are
duly and validly issued and outstanding, fully paid and nonassessable by the
Selling Fund. All of the issued and outstanding shares of the Selling Fund will,
at the time of the Closing Date, be held by the persons and in the amounts set
forth in the records of the Selling Fund's transfer agent as provided in
paragraph 3.4. The Selling Fund has no outstanding options, warrants or other
rights to subscribe for or purchase any of the Selling Fund shares and has no
outstanding securities convertible into any of the Selling Fund shares.
(k) At the Closing Date, the Selling Fund will have good and
marketable title to the Selling Fund's assets to be transferred to the Acquiring
Fund pursuant to paragraph 1.2 and full right, power and authority to sell,
assign, transfer and deliver such assets hereunder, free of any lien or other
encumbrance, except those liens or encumbrances to which the Acquiring Fund has
received notice, and, upon delivery and payment for such assets and the filing
of any documents that may be required under Massachusetts state law, the
Acquiring Fund will acquire good and marketable title, subject to no
restrictions on the full transfer of such assets, other than such restrictions
as might arise under the 1933 Act and other than as disclosed to and accepted by
the Acquiring Fund.
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(l) The execution, delivery and performance of this Agreement
have been duly authorized by all necessary action on the part of the Selling
Fund. Subject to approval by the Selling Fund Shareholders, this Agreement
constitutes a valid and binding obligation of the Selling Fund, enforceable in
accordance with its terms, subject as to enforcement to bankruptcy, insolvency,
reorganization, moratorium and other laws relating to or affecting creditors'
rights and to general equity principles.
(m) The information to be furnished by the Selling Fund for
use in no-action letters, applications for orders, registration statements,
proxy materials and other documents that may be necessary in connection with the
transactions contemplated herein shall be accurate and complete in all material
respects and shall comply in all material respects with federal securities and
other laws and regulations.
(n) From the time of the meeting of the Selling Fund
Shareholders and on the Closing Date, any written information furnished by the
Selling Trust with respect to the Selling Fund for use in the Proxy Materials
(as defined in paragraph 5.8) or any other materials provided in connection with
the Reorganization does not and will not contain any untrue statement of a
material fact or omit to state a material fact required to be stated or
necessary to make the statements, in light of the circumstances under which such
statements were made, not misleading.
(o) The Selling Fund has elected to qualify and has qualified
as a "regulated investment company" under the Code (a "RIC") as of and since its
first taxable year; has been a RIC under the Code at all times since the end of
its first taxable year when it so qualified; and qualifies and will continue to
qualify as a RIC under the Code for its taxable year ending upon its
liquidation.
(p) No governmental consents, approvals, authorizations or
filings are required under the 1933 Act, the Securities Exchange Act of 1934
(the "1934 Act"), the 1940 Act or Massachusetts state law for the execution of
this Agreement by the Selling Trust, for itself and on behalf of the Selling
Fund, except for the filing of any documents that may be required under
Massachusetts law and except for such other consents, approvals, authorizations
and filings as have been made or received and such consents, approvals,
authorizations and filings as may be required subsequent to the Closing Date, it
being understood, however, that this Agreement and the transactions contemplated
herein must be approved by the shareholders of the Selling Fund as described in
paragraph 5.2.
4.2 REPRESENTATIONS OF THE ACQUIRING FUND. The Acquiring Trust, on
behalf of the Acquiring Fund, represents and warrants to the Selling Trust, on
behalf of the Selling Fund, as follows:
(a) The Acquiring Trust is registered as an open-end
management investment company under the 1940 Act, and the Acquiring Trust's
registration with the Commission as an investment company under the 1940 Act is
in full force and effect.
(b) Before the Closing Date, the Acquiring Fund will be a duly
established and designated series of the Acquiring Trust, a business trust that
is duly organized, validly
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existing and in good standing under the laws of the Commonwealth of
Massachusetts, and will have power to carry on its business as it is now being
conducted and to carry out this Agreement.
(c) The Acquiring Fund has not commenced operations and will
not do so until after the Closing.
(d) The Acquiring Fund is not in violation of, and the
execution, delivery and performance of this Agreement will not result in a
violation of, the Acquiring Trust's trust instrument or bylaws or of any
material agreement, indenture, instrument, contract, lease or other undertaking
to which the Acquiring Fund is a party or by which it is bound.
(e) Except as otherwise disclosed in writing to and accepted
by the Selling Fund, no litigation, administrative proceeding or investigation
of or before any court or governmental body is presently pending or to its
knowledge threatened against the Acquiring Fund or any of its properties or
assets which, if adversely determined, would materially and adversely affect its
financial condition, the conduct of its business or the ability of the Acquiring
Fund to carry out the transactions contemplated by this Agreement. The Acquiring
Fund knows of no facts that might form the basis for the institution of such
proceedings and it is not a party to or subject to the provisions of any order,
decree or judgment of any court or governmental body that materially and
adversely affects its business or its ability to consummate the transaction
contemplated herein.
(f) The execution, delivery and performance of this Agreement
have been duly authorized by all necessary action on the part of the Acquiring
Fund, and this Agreement constitutes a valid and binding obligation of the
Acquiring Fund, enforceable in accordance with its terms, subject as to
enforcement to bankruptcy, insolvency, reorganization, moratorium and other laws
relating to or affecting creditors' rights and to general equity principles.
(g) Acquiring Fund Shares to be issued and delivered to the
Selling Fund for the account of the Selling Fund Shareholders pursuant to the
terms of this Agreement will, at the Closing Date, have been duly authorized.
When so issued and delivered, such shares will be duly and validly issued
Acquiring Fund Shares and will be fully paid and nonassessable.
(h) The information to be furnished by the Acquiring Fund for
use in no-action letters, applications for orders, registration statements,
proxy materials and other documents that may be necessary in connection with the
transactions contemplated herein shall be accurate and complete in all material
respects and shall comply in all material respects with federal securities and
other laws and regulations.
(i) From the time of the meeting of the Selling Fund
Shareholders and on the Closing Date, any written information furnished by the
Acquiring Trust with respect to the Acquiring Fund for use in the Proxy
Materials (as defined in paragraph 5.8), or any other materials provided in
connection with the Reorganization, does not and will not contain any untrue
statement of a material fact or omit to state a material fact required to be
stated or necessary to make the statements, in light of the circumstances under
which such statements were made, not misleading.
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(j) The Acquiring Fund will be a "fund" as defined in section
851(g)(2) of the Code and will meet all the requirements of Subchapter M for
qualification and treatment as a RIC for its taxable year that includes the
Closing Date and shall continue to qualify as a RIC under the Code.
(k) No governmental consents, approvals, authorizations or
filings are required under the 1933 Act, the 1934 Act, the 1940 Act or
Massachusetts state law for the execution of this Agreement by the Acquiring
Trust, for itself and on behalf of the Acquiring Fund, or the performance of the
Agreement by the Acquiring Trust, for itself and on behalf of the Acquiring
Fund, except for the filing of any documents that may be required under
Massachusetts state law and such other consents, approvals, authorizations and
filings as have been made or received and except for such consents, approvals,
authorizations and filings as may be required subsequent to the Closing Date.
(l) The Acquiring Fund agrees to use all reasonable efforts to
obtain the approvals and authorizations required by the 1933 Act, the 1940 Act
and any state blue sky or securities laws as it may deem appropriate in order to
continue its operations after the Closing Date.
ARTICLE V
COVENANTS OF THE ACQUIRING FUND AND THE SELLING FUND
5.1 OPERATION IN ORDINARY COURSE. Subject to paragraph 8.5, the Selling
Fund will operate its business in the ordinary course between the date of this
Agreement and the Closing Date, it being understood that such ordinary course of
business will include customary dividends and shareholder purchases and
redemptions. No party shall take any action that would, or reasonably would be
expected to, result in any of its representations and warranties set forth in
this Agreement being or becoming untrue in any material respect.
5.2 APPROVAL OF SHAREHOLDERS. The Selling Trust will call a special
meeting of Selling Fund Shareholders to consider and act upon this Agreement (or
transactions contemplated hereby) and to take all other appropriate action
necessary to obtain approval of the transactions contemplated herein.
5.3 INVESTMENT REPRESENTATION. The Selling Fund covenants that the
Acquiring Fund Shares to be issued pursuant to this Agreement are not being
acquired for the purpose of making any distribution, other than in connection
with the Reorganization and in accordance with the terms of this Agreement.
5.4 ACCESS TO BOOKS AND RECORDS. Upon reasonable notice, the Acquiring
Trust's officers and agents shall have reasonable access to the Selling Fund's
books and records necessary to maintain current knowledge of the Selling Fund
and to ensure that the representations and warranties made by the Selling Fund
are accurate.
5.5 ADDITIONAL INFORMATION. The Selling Fund will assist the Acquiring
Fund in obtaining such information as the Acquiring Fund reasonably requests
concerning the beneficial ownership of the Selling Fund's shares.
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5.6 FURTHER ACTION. Subject to the provisions of this Agreement, the
Acquiring Fund and the Selling Fund will take or cause to be taken all action
and do or cause to be done all things reasonably necessary, proper or advisable
to consummate and make effective the transactions contemplated by this
Agreement, including any actions required to be taken after the Closing Date. In
particular, the Selling Fund covenants that it will, as and when reasonably
requested by the Acquiring Fund, execute and deliver or cause to be executed and
delivered all such assignments and other instruments and will take or cause to
be taken such further action as the Acquiring Fund may reasonably deem necessary
or desirable in order to vest in and confirm the Acquiring Fund's title to and
possession of all the assets and otherwise to carry out the intent and purpose
of this Agreement.
5.7 STATEMENT OF EARNINGS AND PROFITS. As promptly as practicable, but
in any case within sixty (60) days after the Closing Date, the Selling Fund
shall furnish the Acquiring Fund, in such form as is reasonably satisfactory to
the Acquiring Fund, a statement of the earnings and profits of the Selling Fund
for federal income tax purposes that will be carried over by the Acquiring Fund
as a result of Section 381 of the Code, and which will be certified by the
Selling Trust's Treasurer.
5.8 PREPARATION OF PROXY STATEMENT. The Selling Fund will prepare a
proxy statement (the "Proxy Statement") on Schedule 14A of the 1934 Act relating
to the transactions contemplated by this Agreement. The Proxy Statement shall be
in compliance with the 1933 Act, the 1934 Act and the 1940 Act, as applicable.
Each party will provide the other party with the materials and information
necessary to prepare the Proxy Statement of the Selling Fund (the "Proxy
Materials"), for inclusion therein, in connection with the meeting of the
Selling Fund Shareholders to consider the approval of this Agreement and the
transactions contemplated herein.
5.9 LIABILITY INSURANCE. For the period beginning at the Closing Date
and ending not less than five years thereafter, the Acquiring Trust, its
successors or assigns shall provide, or cause to be provided, reasonable
liability insurance covering the actions of the former independent trustees of
the Selling Trust for the period they served as such. The Acquiring Trust shall
ensure that the members of the newly created advisory board are covered persons
under the current liability insurance policies of the Acquiring Trust for the
duration of the advisory board and shall use commercially reasonable efforts to
maintain such coverage for three years thereafter.
ARTICLE VI
CONDITIONS PRECEDENT TO OBLIGATIONS OF THE SELLING FUND
The obligations of the Selling Fund to consummate the transactions
provided for herein shall be subject, at its election, to the performance by the
Acquiring Fund of all the obligations to be performed by the Acquiring Fund
pursuant to this Agreement on or before the Closing Date and, in addition,
subject to the following conditions:
6.1 All representations, covenants and warranties of the Acquiring Fund
contained in this Agreement shall be true and correct in all material respects
as of the date hereof and as of the
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Closing Date, with the same force and effect as if made on and as of the Closing
Date. The Acquiring Fund shall have delivered to the Selling Fund a certificate
executed in the Acquiring Fund's name by the Acquiring Trust's President or Vice
President and its Treasurer or Assistant Treasurer, in form and substance
satisfactory to the Selling Fund and dated as of the Closing Date, to such
effect and as to such other matters as the Selling Fund shall reasonably
request.
6.2 The Selling Fund shall have received on the Closing Date an opinion
of Vedder, Price, ▇▇▇▇▇▇▇ & Kammholz, dated as of the Closing Date, in a form
reasonably satisfactory to the Selling Fund, covering the following points:
(a) The Acquiring Trust is a business trust validly existing
under the laws of the Commonwealth of Massachusetts.
(b) This Agreement has been duly authorized, executed and
delivered by the Acquiring Trust on behalf of the Acquiring Fund and, assuming
due authorization, execution and delivery of this Agreement by the Selling
Trust, is a valid and binding obligation of the Acquiring Trust on behalf of the
Acquiring Fund enforceable against the Acquiring Fund in accordance with its
terms, subject as to enforcement to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and other laws relating to or affecting creditors'
rights generally and to general equity principles.
(c) The execution and delivery of this Agreement do not, and
the consummation of the transactions contemplated herein will not, result in a
violation of the Acquiring Trust's trust instrument or bylaws.
ARTICLE VII
CONDITIONS PRECEDENT TO OBLIGATIONS OF THE ACQUIRING FUND
The obligations of the Acquiring Fund to consummate the transactions
provided for herein shall be subject, at its election, to the performance by the
Selling Fund of all the obligations to be performed by the Selling Fund pursuant
to this Agreement on or before the Closing Date and, in addition, shall be
subject to the following conditions:
7.1 All representations, covenants and warranties of the Selling Fund
contained in this Agreement shall be true and correct in all material respects
as of the date hereof and as of the Closing Date, with the same force and effect
as if made on and as of the Closing Date. The Selling Fund shall have delivered
to the Acquiring Fund on the Closing Date a certificate executed in the Selling
Fund's name by the Selling Trust's President or Vice President and the Treasurer
or Assistant Treasurer, in form and substance satisfactory to the Acquiring Fund
and dated as of the Closing Date, to such effect and as to such other matters as
the Acquiring Fund shall reasonably request.
7.2 The Selling Fund shall have delivered to the Acquiring Fund a
statement of the Selling Fund's assets and liabilities, together with a list of
the Selling Fund's portfolio securities showing the tax costs of such securities
by lot and the holding periods of such securities, as of the Closing Date,
certified by the Treasurer of the Selling Trust.
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7.3 The Acquiring Fund shall have received on the Closing Date an
opinion of Vedder, Price, ▇▇▇▇▇▇▇ & Kammholz, dated as of the Closing Date, in a
form reasonably satisfactory to the Acquiring Fund, covering the following
points:
(a) The Selling Trust is a business trust validly existing
under the laws of the Commonwealth of Massachusetts.
(b) This Agreement has been duly authorized, executed and
delivered by the Selling Trust on behalf of the Selling Fund and, assuming due
authorization, execution and delivery of this Agreement by the Acquiring Trust
on behalf of the Acquiring Fund, is a valid and binding obligation of the
Selling Trust on behalf of the Selling Fund enforceable against the Selling Fund
in accordance with its terms, subject as to enforcement to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and other laws
relating to or affecting creditors' rights generally and to general equity
principles.
(c) The execution and delivery of this Agreement do not, and
the consummation of the transactions contemplated hereby will not, result in a
violation of the Selling Trust's trust instrument (assuming shareholder approval
has been obtained) or bylaws.
ARTICLE VIII
FURTHER CONDITIONS PRECEDENT TO OBLIGATIONS OF THE ACQUIRING
FUND AND SELLING FUND
If any of the conditions set forth below do not exist on or before the
Closing Date with respect to the Selling Fund or the Acquiring Fund, the other
party to this Agreement shall, at its option, not be required to consummate the
transactions contemplated by this Agreement:
8.1 This Agreement and the transactions contemplated herein, with
respect to the Selling Fund, shall have been approved by the requisite vote of
the holders of the outstanding shares of the Selling Fund in accordance with the
provisions of the Selling Trust's trust instrument and bylaws, applicable
Massachusetts state law and the 1940 Act. Certified copies of the resolutions
evidencing such approval shall have been delivered to the Acquiring Fund.
Notwithstanding anything herein to the contrary, neither the Acquiring Fund nor
the Selling Fund may waive the conditions set forth in this paragraph 8.1.
8.2 The Acquiring Trust, on behalf of and with respect to the Acquiring
Fund, shall have entered into or adopted any and all agreements necessary for
the Acquiring Fund's operation as a series of an open-end investment company.
8.3 Before the Closing, the shareholders of the Selling Trust shall
have elected a new board of Trustees, as specified in the Proxy Statement, to
take office immediately prior to the Closing and will serve until the Closing of
the Reorganization.
8.4 Immediately upon delivery to the Selling Fund of the Acquiring Fund
Shares, the individual Trustees of the Selling Fund or any officer duly
authorized by them, on the Acquiring Fund's behalf as the then sole shareholder
of the Acquiring Fund, shall have voted for the following as approved by Selling
Fund Shareholders: (i) ratification as Trustees of the Acquiring
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Trust the persons who currently serve as Trustees of the Selling Trust; (ii) an
investment advisory agreement with Janus; (iii) a sub-advisory agreement between
Janus and Perkins, Wolf, ▇▇▇▇▇▇▇▇▇ and Company and a new sub-advisory agreement
between Janus and a newly formed subsidiary of Perkins, Wolf, ▇▇▇▇▇▇▇▇▇ and
Company; and (iv) the adoption of revised fundamental policies as described in
the Proxy Statement distributed in connection with the special meeting of
Selling Fund Shareholders.
8.5 All required consents of other parties and all other consents,
orders and permits of federal, state and local regulatory authorities (including
those of the Commission and of state securities authorities, including any
necessary "no-action" positions and exemptive orders from such federal
authorities) to permit consummation of the transactions contemplated herein
shall have been obtained, except where failure to obtain any such consent, order
or permit would not involve a risk of a material adverse effect on the assets or
properties of the Acquiring Fund or the Selling Fund, provided that either party
hereto may waive any such conditions for itself.
8.6 The post-effective amendment to the Acquiring Trust's Registration
Statement on Form N-1A relating to the Acquiring Fund under the 1933 Act and the
1940 Act, as applicable, shall have become effective, and any additional
post-effective amendments to such Registration Statement as are determined by
the Trustees of the Acquiring Trust to be necessary and appropriate shall have
been filed with the Commission and shall have become effective. To the best
knowledge of the parties to this Agreement, no investigation or proceeding for
that purpose shall have been instituted or be pending, threatened or
contemplated under the ▇▇▇▇ ▇▇▇.
8.7 The parties shall have received an opinion of Vedder, Price,
▇▇▇▇▇▇▇ & Kammholz addressed to the Acquiring Fund and the Selling Fund
substantially to the effect that, based on certain facts, assumptions and
representations of the parties, for federal income tax purposes:
(a) the transfer of all of the Selling Fund's assets in
exchange for Acquiring Fund Shares and the assumption by the Acquiring Fund of
all of the liabilities of the Selling Fund (followed by the distribution of
Acquiring Fund Shares to the Selling Fund Shareholders in dissolution and
liquidation of the Selling Fund) will constitute a "reorganization" within the
meaning of Section 368(a)(1) of the Code and the Acquiring Fund and the Selling
Fund will each be a "party to a reorganization" within the meaning of Section
368(b) of the Code;
(b) no gain or loss will be recognized by the Acquiring Fund
upon the receipt of the assets of the Selling Fund solely in exchange for
Acquiring Fund Shares and the assumption by the Acquiring Fund of all of the
liabilities of the Selling Fund;
(c) no gain or loss will be recognized by the Selling Fund
upon the transfer of the Selling Fund's assets to the Acquiring Fund solely in
exchange for Acquiring Fund Shares and the assumption by the Acquiring Fund of
all of the liabilities of the Selling Fund or upon the distribution (whether
actual or constructive) of Acquiring Fund Shares to the Selling Fund
Shareholders in exchange for such shareholders' shares of the Selling Fund;
(d) no gain or loss will be recognized by the Selling Fund
Shareholders upon the exchange of their Selling Fund shares for Acquiring Fund
Shares in the Reorganization;
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(e) the aggregate tax basis of Acquiring Fund Shares received
by each Selling Fund Shareholder pursuant to the Reorganization will be the same
as the aggregate tax basis of the Selling Fund shares exchanged therefor by such
shareholder. The holding period of Acquiring Fund Shares to be received by the
Selling Fund Shareholder will include the period during which the Selling Fund
shares exchanged therefor were held by such shareholder, provided the Selling
Fund shares are held as capital assets at the time of the Reorganization; and
(f) the tax basis of the Selling Fund's assets acquired by the
Acquiring Fund will be the same as the tax basis of such assets to the Selling
Fund immediately before the Reorganization. The holding period of the assets of
the Selling Fund in the hands of the Acquiring Fund will include the period
during which those assets were held by the Selling Fund.
Such opinion shall be based on customary assumptions and such
representations as Vedder, Price, ▇▇▇▇▇▇▇ & Kammholz may reasonably request, and
the Selling Fund and Acquiring Fund will cooperate to make and certify the
accuracy of such representations. Notwithstanding anything herein to the
contrary, neither the Acquiring Fund nor the Selling Fund may waive the
condition set forth in this paragraph 8.7.
8.8 The Acquiring Trust's Trustees shall have approved the
establishment of an advisory board comprised of at least four of the former
independent Trustees of the Selling Trust.
ARTICLE IX
EXPENSES
9.1 Janus will pay reasonable expenses associated with the Acquiring
Fund's and the Selling Fund's participation in the Reorganization, including but
not limited to: (a) expenses associated with the preparation and filing of the
Proxy Materials; (b) postage; (c) printing; (d) accounting fees; (e) legal fees
incurred by each Fund (including fees of counsel to, and independent consultants
retained by, the independent Trustees); (f) solicitation costs of the
transaction; (g) fees payable to the independent Trustees for participation in
any special meetings related to the Reorganization; and (h) other related
administrative or operational costs, including the cost (if any) of continuation
of directors' and officers'/errors and omissions insurance for the independent
Trustees of the Selling Trust and obtaining directors' and officers'/errors and
omissions insurance for the advisory board contemplated by paragraph 8.8.
9.2 The Acquiring Trust and the Selling Trust, on behalf of the
Acquiring Fund and the Selling Fund, respectively, represent and warrant that
they have no obligations to pay any brokers' or finders' fees in connection with
the transactions provided for herein.
ARTICLE X
ENTIRE AGREEMENT; SURVIVAL OF WARRANTIES
10.1 The Acquiring Trust, on behalf of the Acquiring Fund, and the
Selling Trust, on behalf of the Selling Fund, agree that neither party has made
to the other party any representation, warranty and/or covenant not set forth
herein and that this Agreement constitutes the entire agreement between the
parties.
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10.2 Except as specified in the next sentence set forth in this
paragraph 10.2, the representations, warranties and covenants contained in this
Agreement or in any document delivered pursuant to or in connection with this
Agreement shall not survive the consummation of the transactions contemplated
hereunder. The covenants to be performed after the Closing Date and the
obligations of the Acquiring Fund in paragraph 5.6 shall continue in effect
beyond the consummation of the transactions contemplated hereunder.
ARTICLE XI
TERMINATION
11.1 This Agreement may be terminated by the mutual agreement of the
Acquiring Trust and the Selling Trust. In addition, either Acquiring Trust or
the Selling Trust may at its option terminate this Agreement with respect to the
Reorganization at or before the Closing Date due to:
(a) a breach by the other of any representation, warranty or
agreement contained herein to be performed at or before the Closing Date, if not
cured within 30 days; or
(b) a condition herein expressed to be precedent to the
obligations of the terminating party that has not been met if it reasonably
appears that it will not or cannot be met.
11.2 In the event of any such termination, in the absence of willful
default, there shall be no liability for damages on the part of either the
Acquiring Fund, the Selling Fund, the Acquiring Trust or the Selling Trust, or
their respective Trustees or officers, to the other party or its Trustees or
officers. In the event of willful default, all remedies at law or in equity of
the party adversely affected shall survive.
ARTICLE XII
AMENDMENTS
12.1 This Agreement may be amended, modified, or supplemented in such
manner as may be mutually agreed upon in writing by the officers of the
Acquiring Trust and the Selling Trust as specifically authorized by their
respective Board of Trustees; provided, however, that, following the meeting of
the Selling Fund Shareholders called by the Selling Fund pursuant to paragraph
5.2 of this Agreement, no such amendment may have the effect of changing the
provisions for determining the number of Acquiring Fund Shares to be issued to
the Selling Fund Shareholders under this Agreement to the detriment of such
Shareholders without their further approval.
ARTICLE XIII
HEADINGS; COUNTERPARTS; GOVERNING LAW; ASSIGNMENT;
LIMITATION OF LIABILITY
13.1 The article and paragraph headings contained in this Agreement are
for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.
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13.2 This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original.
13.3 This Agreement shall be governed by and construed in accordance
with the laws of the Commonwealth of Massachusetts.
13.4 This Agreement shall bind and inure to the benefit of the parties
hereto and their respective successors and assigns, but, except as provided in
this paragraph, no assignment or transfer hereof or of any rights or obligations
hereunder shall be made by any party without the written consent of the other
party. Nothing herein expressed or implied is intended or shall be construed to
confer upon or give any person, firm or corporation, other than the parties
hereto and their respective successors and assigns, any rights or remedies under
or by reason of this Agreement.
13.5 It is expressly agreed that the obligations of the Acquiring Fund
hereunder shall not be binding upon any of the Trustees, shareholders, nominees,
officers, agents or employees of the Acquiring Trust personally, but shall bind
only the trust property of the Acquiring Fund, as provided in the trust
instrument of the Acquiring Trust. Moreover, no series of the Acquiring Trust
other than the Acquiring Fund shall be responsible for the obligations of the
Acquiring Trust hereunder, and all persons shall look only to the assets of the
Acquiring Fund to satisfy the obligations of the Acquiring Fund hereunder. The
execution and delivery of this Agreement have been authorized by the Trustees of
the Acquiring Trust on behalf of the Acquiring Fund and signed by authorized
officers of the Acquiring Trust, acting as such. Neither the authorization by
such Trustees nor the execution and delivery by such officers shall be deemed to
have been made by any of them individually or to impose any liability on any of
them personally, but shall bind only the trust property of the Acquiring Fund as
provided in the trust instrument of the Acquiring Trust.
13.6 It is expressly agreed that the obligations of the Selling Fund
hereunder shall not be binding upon any of the Trustees, shareholders, nominees,
officers, agents or employees of the Selling Trust personally, but shall bind
only the trust property of the Selling Fund, as provided in the trust instrument
of the Selling Trust. Moreover, no series of the Selling Trust other than the
Selling Fund shall be responsible for the obligations of the Selling Trust
hereunder, and all persons shall look only to the assets of the Selling Fund to
satisfy the obligations of the Selling Fund hereunder. The execution and
delivery of this Agreement have been authorized by the Trustees of the Selling
Trust on behalf of the Selling Fund and signed by authorized officers of the
Selling Trust, acting as such. Neither the authorization by such Trustees nor
the execution and delivery by such officers shall be deemed to have been made by
any of them individually or to impose any liability on any of them personally,
but shall bind only the trust property of the Selling Fund as provided in the
trust instrument of the Selling Trust.
ARTICLE XIV
NOTICES
14.1 Any notice, report, statement or demand required or permitted by
any provisions of this Agreement shall be in writing and shall be deemed duly
given if delivered by hand
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(including by FedEx or similar express courier) or transmitted by facsimile or
three days after being mailed by prepaid registered or certified mail, return
receipt requested, addressed to the Selling Trust, ▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇,
▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, Attention: General Counsel, or to the Acquiring Trust,
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, Attention: General Counsel, or to
any other address that the Selling Trust or the Acquiring Trust shall have last
designated by notice to the other party.
17
IN WITNESS WHEREOF, the parties have duly executed this Agreement, all
as of the date first written above.
JANUS INVESTMENT FUND
By:
----------------------------
Name:
Title: President
ACKNOWLEDGED:
By:
----------------------------
Name:
--------------------------
Title:
-------------------------
▇▇▇▇▇▇ OMNI INVESTMENT TRUST
By:
----------------------------
Name:
Title: President
ACKNOWLEDGED:
By:
----------------------------
Name:
--------------------------
Title:
-------------------------
The Undersigned is a party to this
Agreement for the purposes of
paragraph 9.1 only:
JANUS CAPITAL MANAGEMENT LLC
By:
----------------------------
Name:
Title:
ACKNOWLEDGED:
By:
----------------------------
Name:
--------------------------
Title:
-------------------------
18