EXHIBIT (H)(1)
_______ SHARES
▇▇▇▇▇▇ BROTHERS/FIRST TRUST
INCOME OPPORTUNITY FUND
MONEY MARKET CUMULATIVE PREFERRED SHARES
LIQUIDATION PREFERENCE $25,000 PER SHARE
FORM OF UNDERWRITING AGREEMENT
, 2003
▇▇▇▇▇▇ Brothers Inc.
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Ladies and Gentlemen:
▇▇▇▇▇▇ Brothers/First Trust Income Opportunity Fund, a Delaware
statutory trust (the "FUND"), proposes to sell shares (the "SHARES") of its
Money Market Cumulative Preferred Shares, no par value per share,
liquidation preference of $25,000 per share, to ▇▇▇▇▇▇ Brothers Inc. (the
"UNDERWRITER"). The Shares will be authorized by, and subject to the terms and
conditions of, the Second Amended and Restated By-laws of the Fund adopted in
connection with the issuance of the Shares (as amended through the date hereof,
the "BY-LAWS") in the form filed as an exhibit to the Registration Statement (as
defined in Section 1 of this Agreement). The Fund, the Fund's investment
adviser, ▇▇▇▇▇▇ Brothers Asset Management Inc., a Delaware corporation (the
"INVESTMENT ADVISER"), and the Fund's Subadviser, Lincoln Capital Fixed Income
Management Company, LLC, a Delaware limited liability company (the "SUBADVISER,"
and together with the Investment Adviser, the "ADVISERS"), each wishes to
confirm its agreement concerning the purchase of the Shares from the Fund by the
Underwriter.
The Fund has entered into an Investment Advisory Agreement with the
Investment Adviser dated July 24, 2003 (the "ADVISORY AGREEMENT"), a Servicing
Agreement with First Trust Portfolios L.P. ("FIRST TRUST") dated July 24, 2003
(the "SERVICING AGREEMENT"), a Custodian Agreement with Investors Bank & Trust
("IBT") dated July 24, 2003 (the "CUSTODIAN AGREEMENT"), an Administration
Agreement with IBT dated July 24, 2003 (the "ADMINISTRATION AGREEMENT"), a
Transfer Agency and Service Agreement with IBT dated July 24, 2003 (the
"TRANSFER AGENCY AGREEMENT") and an Auction Agency Agreement (including the form
of Broker-Dealer Agreement) with The Bank of New York (the "AUCTION AGENT"),
dated , 2003 (the "AUCTION AGENCY AGREEMENT"). Collectively, the Advisory
Agreement, the Servicing Agreement, the Custodian Agreement, the Administration
Agreement, the Transfer Agency Agreement and the Auction Agency Agreement are
referred to herein as the "FUND AGREEMENTS." The Investment Adviser has entered
into an Investment Sub-Advisory Agreement with the Subadviser dated July 24,
2003 (the "SUB-ADVISORY AGREEMENT"), a Letter Agreement with First Trust dated
July 28, 2003 regarding compensation payable by the Adviser to First Trust (the
"LETTER AGREEMENT") and an Underwriter Participation Agreement with First Trust
and the Fund dated July 24, 2003 (the "UNDERWRITER PARTICIPATION AGREEMENT").
Collectively, the Sub-Advisory Agreement, the Letter Agreement and the
Underwriter Participation Agreement are referred to herein as the "ADVISERS
AGREEMENTS." This Underwriting Agreement is herein referred to as the
"AGREEMENT."
SECTION 1. Representations, Warranties and Agreements of the Fund and the
Advisers. The Fund and the Advisers jointly and severally represent, warrant and
agree that:
(a) A registration statement on Form N-2 (File Nos. 333-108243 and
811-21342) with respect to the Shares has (i) been prepared by the Fund in
conformity with the requirements of the Securities Act of 1933, as amended (the
"SECURITIES ACT"), the Investment Company Act of 1940, as amended (the "1940
ACT"), and the rules and regulations of the United States Securities and
Exchange Commission (the "COMMISSION") under the Securities Act (the "1933 ACT
RULES AND REGULATIONS") and the 1940 Act (the "1940 ACT RULES AND REGULATIONS,"
and, together with the 1933 Act Rules and Regulation, the "RULES AND
REGULATIONS"), (ii) been filed with the Commission under the Securities Act and
the 1940 Act and (iii) become effective under the Securities Act. If any
post-effective amendment to such registration statement has been filed with the
Commission prior to execution and delivery of this Agreement, the most recent
such amendment has been declared effective by the Commission. Copies of such
registration statement and each of the amendments thereto have been delivered by
the Fund to you as the Underwriter. As used in this Agreement, "EFFECTIVE TIME"
means the date and the time as of which such registration statement, or the most
recent post-effective amendment thereto, if any, was declared effective by the
Commission; "EFFECTIVE DATE" means the date of the Effective Time; "PRELIMINARY
PROSPECTUS" means each prospectus and related statement of additional
information included in such registration statement, or amendments thereof,
before it became effective under the Securities Act and any prospectus filed
with the Commission by the Fund with the consent of the Underwriter pursuant to
Rule 497(a) of the 1933 Act Rules and Regulations; "REGISTRATION STATEMENT"
means such registration statement, as amended at the Effective Time, including
all information contained in the final prospectus (including the statement of
additional information) filed with the Commission pursuant to Rule 497 of the
1933 Act Rules and Regulations and deemed to be a part of the registration
statement as of the Effective Time pursuant to Rule 430A of the Rules and
Regulations; and "PROSPECTUS" means the prospectus in the form first used to
confirm sales of Shares. If the Fund has filed an abbreviated registration
statement to register additional Shares pursuant to Rule 462(b) under the
Securities Act (the "RULE 462 REGISTRATION STATEMENT"), then any reference
herein to the term "REGISTRATION STATEMENT" shall be deemed to include such Rule
462 Registration Statement. The Commission has not issued any order preventing
or suspending the use of any Preliminary Prospectus or the Prospectus.
(b) A notification of registration of the Fund as an investment
company under the 1940 Act on Form N-8A (the "1940 ACT NOTIFICATION") has been
prepared by the Fund in conformity with the 1940 Act and has been filed with the
Commission.
(c) The Registration Statement and the 1940 Act Notification
conform, and the Prospectus and any further amendments or supplements to the
Registration Statement or the Prospectus will, when they become effective or are
filed with the Commission, as the case may be, conform in all respects to the
requirements of the Securities Act, the 1940 Act and the Rules and Regulations
and do not and will not, as of the applicable effective date (as to the
Registration Statement and any amendment thereto) and as of the applicable
filing date (as to the Prospectus and the 1940 Act Notification and any
amendment or supplement thereto) contain an untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading; provided that no representation or
warranty is made as to information contained in or omitted from the Registration
Statement, the 1940 Act Notification or the Prospectus in reliance upon and in
conformity with written information furnished to the Fund by the Underwriter
specifically for inclusion therein.
(d) The Fund has been duly formed and is validly existing as a
statutory trust in good standing under the laws of Delaware, is duly registered
and qualified to do business and is in good standing in each jurisdiction in
which its ownership or lease of property or the conduct of its business as
described in the Registration Statement and the Prospectus (and any amendment or
supplement to either)
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requires such qualification, and has all statutory trust power and authority
necessary to own or hold property and to conduct the business as described in
the Registration Statement and the Prospectus (and any amendment or supplement
to either), except where the failure to so qualify or to be in good standing
would not reasonably be expected to have a material adverse effect on business,
management, financial condition, stockholders' equity or results of operations
of the Fund (a "MATERIAL ADVERSE EFFECT"). The Fund has no subsidiaries.
(e) The Fund has an authorized capitalization as set forth in the
Registration Statement and the Prospectus. All of the issued shares of capital
stock of the Fund have been duly and validly authorized and issued, were issued
in compliance with federal and state securities laws, are fully paid and
non-assessable and conform to the description thereof contained in the
Registration Statement and the Prospectus (and any amendment or supplement to
either).
(f) The Shares to be issued and sold by the Fund to the
Underwriter hereunder have been duly and validly authorized and, when issued and
delivered against payment therefor in accordance with this Agreement, will be
duly and validly issued, fully paid and non-assessable; and the Shares will
conform to the description thereof contained in the Registration Statement and
the Prospectus (and any amendment or supplement to either). Upon payment for and
delivery of the Shares to be sold by the Fund pursuant to this Agreement, the
Underwriter will acquire good and valid title to such Shares, in each case free
and clear of all liens, encumbrances, equities, preemptive rights, subscription
rights, other rights to purchase, voting or transfer restrictions and other
claims.
(g) This Agreement and each of the Fund Agreements have been duly
authorized, executed and delivered by the Fund and constitute valid and legally
binding agreements of the Fund, enforceable against the Fund in accordance with
their terms, except as rights to indemnity and contribution hereunder may be
limited by federal or state securities laws and subject to the qualification
that the enforceability of the Fund's obligations hereunder and thereunder may
be limited by bankruptcy, insolvency, reorganization, moratorium and other laws
relating to or affecting creditors' rights generally and by general equitable
principles.
(h) The execution, delivery and performance of this Agreement and
the Fund Agreements by the Fund and the consummation of the transactions
contemplated hereby and thereby will not (i) conflict with or result in a breach
or violation of any of the terms or provisions of, or constitute a default
under, any indenture, mortgage, deed of trust, loan agreement or other agreement
or instrument to which the Fund is a party or by which the Fund is bound or to
which any of the property or assets of the Fund is subject, (ii) result in any
violation of the provisions of the Fund's Declaration of Trust (the "DECLARATION
OF TRUST") or the By-laws or (iii) result in the violation of any statute or any
order, rule or regulation of any court or governmental agency or body having
jurisdiction over the Fund or any of its properties or assets, except in the
case of clauses (i) and (iii), such conflicts, breaches or violations that in
the aggregate would not reasonably be expected to have a Material Adverse
Effect; and except for the registration of the Shares under the Securities Act
and such consents, approvals, authorizations, registrations or qualifications as
may be required under the Exchange Act and applicable state securities laws in
connection with the purchase and distribution of the Shares by the Underwriter,
no consent, approval, authorization or order of, or filing or registration with,
any such court or governmental agency or body is required for the execution,
delivery and performance of this Agreement and the Fund Agreements by the Fund
and the consummation of the transactions contemplated hereby and thereby.
(i) There are no contracts, agreements or understandings between
the Fund and any person granting such person the right to require the Fund to
file a registration statement under the Securities Act with respect to any
securities of the Fund owned or to be owned by such person or to require the
Fund to include such securities in the securities registered pursuant to the
Registration Statement or in any
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securities being registered pursuant to any other registration statement filed
by the Fund under the Securities Act. The holders of outstanding shares of the
Fund's capital stock are not entitled to preemptive or other rights to subscribe
for the Shares. There are no outstanding options, warrants or other rights to
purchase, agreements or other obligations to issue, or rights to convert any
obligations into or exchange any securities for, shares of capital stock of or
ownership interests in the Fund.
(j) The Fund has not sustained, since the date of the latest
audited financial statements included in the Prospectus, any material loss or
interference with its business that has had, or could reasonably be expected to
have, a Material Adverse Effect, whether from fire, explosion, flood or other
calamity, whether or not covered by insurance, or from any labor dispute or
court or governmental action, order or decree; and, since such date, there has
not been any change in the capital stock or long-term debt of the Fund or any
change, or any development involving a prospective change, in or affecting the
general affairs, management, consolidated financial position, stockholders'
equity, results of operations, business or prospects of the Fund that has had or
could reasonably be expected to have a Material Adverse Effect, other than as
set forth or contemplated in the Prospectus.
(k) The financial statements (including the related notes and
supporting schedules) filed as part of the Registration Statement or included in
the Prospectus present fairly the financial condition and results of operations
of the Fund, at the dates and for the periods indicated, and have been prepared
in conformity with generally accepted accounting principles applied on a
consistent basis throughout the periods involved.
(l) ▇▇▇▇▇ & Young LLP, who have certified certain financial
statements of the Fund, whose report appears in the Prospectus and who have
delivered the letters referred to in Section 8(f) hereof, have represented to
the Fund that they are independent public accountants as required by the
Securities Act, the 1940 Act and the Rules and Regulations.
(m) The Fund carries, or is covered by, insurance in such amounts
and covering such risks as is adequate for the conduct of its businesses and the
value of its property and as is customary for companies engaged in similar
businesses in similar industries.
(n) There are no legal or governmental proceedings pending to
which the Fund is a party or of which any property or assets of the Fund is the
subject which is reasonably likely to be determined adversely to the Fund and,
if determined adversely to the Fund, would be reasonably likely to have a
Material Adverse Effect; and to the best of the Fund's knowledge, no such
proceedings are threatened or contemplated by governmental authorities or
threatened by others.
(o) There are no contracts or other documents which are required
to be described in the Registration Statement or the Prospectus or filed as
exhibits to the Registration Statement by the Securities Act, the 1940 Act or by
the Rules and Regulations which have not been described in the Registration
Statement or the Prospectus or filed as exhibits to the Registration Statement.
(p) No relationship, direct or indirect, exists between or among
the Fund on the one hand, and the trustees, officers, stockholders, suppliers or
service providers of the Fund on the other hand, which is required to be
described in the Registration Statement or the Prospectus which is not so
described.
(q) The Fund has filed all federal, state and local income and
franchise tax returns required to be filed through the date hereof and has paid
all taxes due thereon, and no tax deficiency has been determined adversely to
the Fund (nor does the Fund have any knowledge of any tax deficiency which, if
determined adversely to the Fund, might have a Material Adverse Effect).
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(r) Since the date as of which information is given in the
Registration Statement and the Prospectus through the date hereof, and except as
may otherwise be disclosed in the Prospectus, the Fund has not (i) issued or
granted any securities, (ii) incurred any liability or obligation, direct or
contingent, other than non-material liabilities and obligations which were
incurred in the ordinary course of business, (iii) entered into any transaction
not in the ordinary course of business or (iv) declared or paid any dividend on
its capital stock.
(s) The Fund (i) makes and keeps accurate books and records and
(ii) maintains internal accounting controls which provide reasonable assurance
that (A) transactions are executed in accordance with management's authorization
and with the investment policies and restrictions of the Fund and the applicable
requirements of the 1940 Act, the 1940 Act Rules and Regulations and the
Internal Revenue Code of 1986, as amended (the "CODE"), (B) transactions are
recorded as necessary to permit preparation of its financial statements and to
maintain accountability for its assets, (C) access to its assets is permitted
only in accordance with management's authorization and (D) the reported
accountability for its assets is compared with existing assets at reasonable
intervals.
(t) The Fund is not (i) in violation of the Declaration of Trust
or By-laws, (ii) in default, and no event has occurred which, with notice or
lapse of time or both, would constitute such a default, in the due performance
or observance of any term, covenant or condition contained in any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to
which it is a party or by which it is bound or to which any of its properties or
assets is subject or (iii) in violation of any law, ordinance, governmental
rule, regulation or court decree to which it or its property or assets may be
subject or has failed to obtain any material license, permit, certificate,
franchise or other governmental authorization or permit necessary to the
ownership of its property or to the conduct of its business, except, in the case
of clauses (ii) and (iii), such defaults, events, violations or failures that in
the aggregate would not reasonably be expected to have a Material Adverse
Effect.
(u) Neither the Fund nor the Advisers, nor any trustee, director,
officer, agent, employee or other person associated with or acting on behalf of
the Fund or any of the Advisers, has used any funds of the Fund or the Advisers
for any unlawful contribution, gift, entertainment or other unlawful expense
relating to political activity; made any direct or indirect unlawful payment to
any foreign or domestic government official or employee from any funds of the
Fund or the Advisers; violated or is in violation of any provision of the
Foreign Corrupt Practices Act of 1977; or made any bribe, rebate, payoff,
influence payment, kickback or other unlawful payment.
(v) Neither the Fund nor any employee or agent of the Fund nor any
Adviser has made any payment of funds of the Fund or the Advisers or received or
retained any funds, which payment, receipt or retention of funds is of a
character required to be disclosed in the Prospectus or the Registration
Statement.
(w) Except for the Letter Agreement, there are no contracts,
agreements or understandings between the Fund or any of the Advisers and any
person that would give rise to a valid claim against the Fund or the Underwriter
for a brokerage commission, finder's fee or other like payment in connection
with this offering.
(x) The Fund, subject to the filing of the Prospectus under Rule
497 under the 1933 Act Rules and Regulations, has taken all required action
under the Securities Act, the 1940 Act and the Rules and Regulations to make the
public offering and consummate the sale of the Shares as contemplated by this
Agreement.
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(y) Except as stated in this Agreement and in the Prospectus (and
any amendment or supplement thereto), neither the Fund nor the Advisers have
taken nor shall take, directly or indirectly, any action designed to cause or
result in, or which constituted or which might reasonably be expected to
constitute, the stabilization or manipulation of the price of the Shares to
facilitate the sale or resale of the Shares.
(z) The Fund is duly registered under the 1940 Act as a
closed-end, diversified management investment company and the 1940 Act
Notification has been duly filed with the Commission, and, at the time of filing
thereof and at the time of filing any amendment or supplement thereto, conformed
in all material respects with all applicable provisions of the 1940 Act and the
1940 Act Rules and Regulations. The Fund has not received any notice from the
Commission pursuant to Section 8(e) of the 1940 Act with respect to the 1940 Act
Notification or the Registration Statement (or any amendment or supplement to
either of them).
(aa) The Fund and each of the Advisers owns or possesses adequate
rights to use all material patents, patent applications, trademarks, service
marks, trade names, trademark registrations, service mark registrations,
copyrights and licenses (collectively, the "INTELLECTUAL PROPERTY") necessary
for the conduct of its business (as described in the Prospectus).
(bb) Any advertising, sales literature, promotional materials or
any other materials or information (including "prospectus wrappers", "broker
kits" and any roadshow or investor presentations), whether in oral, printed or
electronic form, authorized, provided or prepared by the Fund or the Advisers in
connection with the offering and sale of the Shares (collectively, the
"MARKETING MATERIALS") complied and comply in all material respects with the
applicable requirements of the Securities Act, the 1933 Act Rules and
Regulations and the rules and interpretations of the National Association of
Securities Dealers, Inc. ("NASD") and if required to be filed with the NASD
under the NASD's conduct rules were so filed. No Marketing Materials contained
or contains an untrue statement of a material fact or omitted or omits to state
a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading.
(cc) This Agreement and each of the Fund Agreements complies in all
material respects with all applicable provisions of the 1940 Act, the 1940 Act
Rules and Regulations, the Investment Advisers Act of 1940 (the "ADVISERS ACT"),
and the rules and regulations adopted by the Commission under the Advisers Act
(the "ADVISERS ACT RULES AND REGULATIONS").
(dd) The Fund will direct the investment of the proceeds of the
offering of the Shares in such a manner as to comply with the requirements of
Subchapter M of the Code and, at all times since its inception, the Fund has
complied with all requirements to qualify as a regulated investment company
under Subchapter M of the Code.
(ee) The Fund will comply with all applicable securities and other
applicable laws, rules and regulations, including, without limitation, the
▇▇▇▇▇▇▇▇-▇▇▇▇▇ Act of 2002, and will use its best efforts to cause the Fund's
trustees and officers, in their capacities as such, to comply with such laws,
rules and regulations, including, without limitation, the provisions of the
▇▇▇▇▇▇▇▇-▇▇▇▇▇ Act of 2002.
(ff) Except as disclosed in the Registration Statement and the
Prospectus (or any amendment or supplement to either of them), no trustee of the
Fund is an "interested person" (as defined in the 1940 Act) of the Fund or an
"affiliated person" (as defined in the 1940 Act) of the Underwriter.
(gg) The Fund's common shares of beneficial interest, no par value
per share (the "COMMON SHARES") are duly listed on the New York Stock Exchange
("NYSE").
6
(hh) The Shares have been, or prior to the Delivery Date will be,
assigned a rating of "Aaa" by ▇▇▇▇▇'▇ Investors Service, Inc. ("MOODY'S") and
"AAA" by Standard & Poor's Rating Services ("S&P", together with Moody's, the
"RATING AGENCIES").
SECTION 2. Representations, Warranties and Agreements of the Advisers. Each of
the Advisers severally as to itself only and not jointly or as to any other
party, represents, warrants and agrees that:
(a) Such Adviser has been duly incorporated, organized or formed
and is validly existing as a corporation or limited liability company, as the
case may be, in good standing under the laws of its jurisdiction of
incorporation, is duly registered and qualified to do business and is in good
standing in each jurisdiction in which its ownership or lease of property or the
conduct of its business as described in the Registration Statement and the
Prospectus (and any amendment or supplement to either) requires such
qualification, and has all corporate or limited liability company power and
authority necessary to own or hold their respective properties and to conduct
the business as described in the Registration Statement and the Prospectus (and
any amendment or supplement to either), except where the failure to so qualify
or to be in good standing would not reasonably be expected to have a Material
Adverse Effect.
(b) Such Adviser is duly registered as an investment adviser under
the Advisers Act and is not prohibited by the Advisers Act, the 1940 Act, the
Advisers Act Rules and Regulations or the 1940 Act Rules and Regulations from
acting under the Fund Agreements (to which such Adviser is a party) or the
Advisers Agreements (to which such Adviser is a party) as contemplated by the
Registration Statement and the Prospectus (or any amendment or supplement
thereto).
(c) This Agreement, the Fund Agreements (to which such Adviser is
a party) and the Advisers Agreements (to which such Adviser is a party) have
each been duly authorized, executed and delivered by such Adviser, and
constitute valid and legally binding agreements of such Adviser, enforceable
against such Adviser in accordance with their terms, except as rights to
indemnity and contribution hereunder may be limited by federal or state
securities laws and subject to the qualification that the enforceability of such
Adviser's obligations hereunder and thereunder may be limited by bankruptcy,
insolvency, reorganization, moratorium and other laws relating to or affecting
creditors' rights generally and by general equitable principles.
(d) The execution, delivery and performance of this Agreement, the
Fund Agreements (to which such Adviser is a party) and the Advisers Agreements
(to which such Adviser is a party) and the consummation of the transactions
contemplated hereby and thereby will not (i) conflict with or result in a breach
or violation of any of the terms or provisions of, or constitute a default
under, any indenture, mortgage, deed of trust, loan agreement or other agreement
or instrument to which such Adviser is a party or by which such Adviser is bound
or to which any of the property or assets of such Adviser is subject, (ii)
result in any violation of the provisions of the charter documents or by-laws of
such Adviser or (iii) result in the violation of any statute or any order, rule
or regulation of any court or governmental agency or body having jurisdiction
over such Adviser or any of its properties or assets, except in the case of
clauses (i) and (iii), such conflicts, breaches or violations that in the
aggregate would not reasonably be expected to have a Material Adverse Effect;
and except for the registration of the Shares under the Securities Act and such
consents, approvals, authorizations, registrations or qualifications as may be
required under the Exchange Act and applicable state securities laws in
connection with the purchase and distribution of the Shares by the Underwriter,
no consent, approval, authorization or order of, or filing or registration with,
any such court or governmental agency or body is required for the execution,
delivery and performance of this Agreement, the Fund Agreements (to which such
Adviser is a party) and the Advisers Agreements (to which such Adviser is a
party) and the consummation of the transactions contemplated hereby and thereby.
7
(e) Such Adviser has the financial resources available to it
necessary for the performance of its services and obligations as contemplated in
the Registration Statement and the Prospectus (or any amendment or supplement
thereto) and under this Agreement and the Fund Agreements (to which such Adviser
is a party) and the Advisers Agreements (to which such Adviser is a party).
(f) Such Adviser carries, or is covered by, insurance in such
amounts and covering such risks as is adequate for the conduct of its businesses
and the value of its property and as is customary for companies engaged in
similar businesses in similar industries.
(g) The description of such Adviser and its business, and the
statements attributable to such Adviser, in the Registration Statement and the
Prospectus (and any amendment or supplement thereto) complied and comply in all
material respects with the provisions of the Securities Act, the 1940 Act, the
Advisers Act, the Rules and Regulations and the Advisers Act Rules and
Regulations and did not and will not contain an untrue statement of a material
fact necessary to make the statements therein (in the case of a prospectus, in
light of the circumstances under which they were made) not misleading.
(h) There are no legal or governmental proceedings pending to
which such Adviser is a party or of which any property or assets of such Adviser
is the subject which is reasonably likely to be determined adversely to such
Adviser and, if determined adversely to such Adviser, would be reasonably likely
to have a Material Adverse Effect; and to the best of such Adviser's knowledge,
no such proceedings are threatened or contemplated by governmental authorities
or threatened by others.
(i) Since the date as of which information is given in the
Registration Statement and the Prospectus through the date hereof, and except as
may otherwise be disclosed in the Prospectus, there have been no transactions
entered into by such Adviser which are material to such Adviser other than in
the ordinary course of its business.
(j) This Agreement, each of the Fund Agreements (to which such
Adviser is a party) and the Advisers Agreements (to which such Adviser is a
party) comply in all material respects with all applicable provisions of the
1940 Act, the 1940 Act Rules and Regulations, the Advisers Act and the Advisers
Act Rules and Regulations.
(k) Such Adviser is not (i) in violation of its charter documents
or by-laws, (ii) in default in any material respect, and no event has occurred
which, with notice or lapse of time or both, would constitute such a default, in
the due performance or observance of any term, covenant or condition contained
in any indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument to which it is a party or by which it is bound or to which any of its
properties or assets is subject or (iii) in violation of any law, ordinance,
governmental rule, regulation or court decree to which it or its property or
assets may be subject or has failed to obtain any material license, permit,
certificate, franchise or other governmental authorization or permit necessary
to the ownership of its property or to the conduct of its business, except, in
the case of clauses (ii) and (iii), such defaults, events, violations or
failures that in the aggregate would not reasonably be expected to have a
Material Adverse Effect.
SECTION 3. Purchase of the Shares by the Underwriter. On the basis of the
representations and warranties contained in, and subject to the terms and
conditions of, this Agreement, the Fund agrees to sell Shares to the Underwriter
and the Underwriter agrees to purchase such Shares.
The price of the Shares shall be $ per share.
8
The Fund shall not be obligated to deliver any of the Shares to be
delivered on the Delivery Date (as hereinafter defined), except upon payment for
all the Shares to be purchased on such Delivery Date as provided herein.
SECTION 4. Offering of Shares by the Underwriter. The Underwriter proposes to
offer the Shares for sale upon the terms and conditions set forth in the
Prospectus.
SECTION 5. Delivery of and Payment for the Shares. Delivery of and payment for
the Shares shall be made at the offices of ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇▇ LLP, ▇▇▇
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ or through the facilities of the
Depository Trust Company or another mutually agreeable facility, at 10:00 A.M.,
New York City time, on , 2003 or at such other date or place as shall be
determined by agreement between the Underwriter and the Fund (the "DELIVERY
DATE"). On the Delivery Date, the Fund shall deliver or cause to be delivered
the certificate or certificates representing the Shares to, or for the account
of, the Underwriter against payment to or upon the order of the Fund of the
purchase price by wire transfer in immediately available funds. Time shall be of
the essence, and delivery at the time and place specified pursuant to this
Agreement is a further condition of the obligation of the Underwriter hereunder.
Upon delivery, the Shares shall be registered in such names and in such
denominations as the Underwriter shall request in writing not less than two full
business days prior to the Delivery Date. The Fund shall make the certificate or
certificates representing the Shares available for inspection by the Underwriter
in New York, New York, not later than 2:00 P.M., New York City time, on the
business day prior to the Delivery Date.
SECTION 6. Further Agreements of the Fund and the Advisers. The Fund and the
Advisers jointly and severally covenant and agree:
(a) If, at the time this Agreement is executed and delivered, it
is necessary for the Registration Statement or a post-effective amendment
thereto to be declared effective under the Securities Act before the offering of
the Shares may commence, to use its reasonable best efforts to cause the
Registration Statement or such post-effective amendment to become effective
under the Securities Act as soon as possible; if the Registration Statement has
become effective and the Prospectus contained therein omits certain information
at the time of effectiveness pursuant to Rule 430A of the 1933 Act Rules and
Regulations, to file a Prospectus with the Commission pursuant to Rule 497(h) of
the 1933 Act Rules and Regulations as promptly as possible, not later than the
Commission's close of business on the second business day following the
execution and delivery of this Agreement; if the Registration Statement does not
so omit such information, the Fund will file a Prospectus pursuant to 497(c) or
a certification pursuant to 497(j) of the Securities Act as promptly as
possible, not later than the fifth business day following the execution and
delivery of this Agreement; to make no further amendment or any supplement to
the Registration Statement or to the Prospectus except as permitted herein; to
advise the Underwriter, promptly after it receives notice thereof, of the time
when the Registration Statement or any amendment thereto has been filed or
becomes effective or any supplement to the Prospectus or any amended Prospectus
has been filed and to furnish the Underwriter with copies thereof; to advise the
Underwriter, promptly after it receives notice thereof, of the issuance by the
Commission of any stop order or of any order preventing or suspending the use of
any Preliminary Prospectus or the Prospectus, of the suspension of the
qualification of the Shares for offering or sale in any jurisdiction, of the
initiation or threatening of any proceeding for any such purpose, or of any
request by the Commission for the amending or supplementing of the Registration
Statement or the Prospectus or for additional information; and, in the event of
the issuance of any stop order or of any order preventing or suspending the use
of any Preliminary Prospectus or the Prospectus or suspending any such
qualification, to use promptly its best efforts to obtain its withdrawal;
9
(b) To furnish promptly to the Underwriter and to counsel for the
Underwriter a signed copy of the Registration Statement and the 1940 Act
Notification each as originally filed with the Commission and each amendment
thereto, including all financial statements, consents and exhibits thereto
(except any post-effective amendment which is filed with the Commission after
the later of (x) one year from the date of this Agreement and (y) the date on
which the distribution of the Shares is completed);
(c) To deliver promptly to the Underwriter such number of the
following documents as the Underwriter shall reasonably request: (i) conformed
copies of the Registration Statement as originally filed with the Commission and
each amendment thereto (in each case excluding exhibits) and (ii) each
Preliminary Prospectus, the Prospectus and any amended or supplemented
Prospectus; and, if the delivery of a prospectus is required at any time after
the Effective Time in connection with the offering or sale of the Shares or any
other securities relating thereto and if at such time any events shall have
occurred as a result of which the Prospectus as then amended or supplemented
would include an untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made when such Prospectus is delivered,
not misleading, or, if for any other reason it shall be necessary to amend or
supplement the Prospectus in order to comply with the Securities Act, to notify
the Underwriter and, upon their request, to file such document and to prepare
and furnish without charge to the Underwriter and to any dealer in securities as
many copies as the Underwriter may from time to time reasonably request of an
amended or supplemented Prospectus which will correct such statement or omission
or effect such compliance;
(d) To file promptly with the Commission any amendment to the
Registration Statement or the Prospectus or any supplement to the Prospectus
that may, in the judgment of the Fund or the Underwriter, be required by the
Securities Act or requested by the Commission;
(e) Prior to filing with the Commission any amendment to the
Registration Statement or supplement to the Prospectus or any Prospectus
pursuant to Rule 497 of the 1933 Act Rules and Regulations, to furnish a copy
thereof to the Underwriter and counsel for the Underwriter and obtain the
consent of the Underwriter to the filing, which consent shall not be
unreasonably withheld;
(f) As soon as practicable after the Effective Date, to make
generally available to the Fund's security holders and to deliver to the
Underwriter an earnings statement of the Fund (which need not be audited)
complying with Section 10(a) of the Securities Act and the Rules and Regulations
(including, at the option of the Fund, Rule 158);
(g) For a period of five years following the Effective Date, to
furnish to the Underwriter, to the extent such information is not freely
available on the Internet, copies of all materials furnished by the Fund to its
shareholders and all public reports and all reports and financial statements
furnished by the Fund to the principal national securities exchange upon which
the Common Shares may be listed pursuant to requirements of or agreements with
such exchange or to the Commission pursuant to the Exchange Act or any rule or
regulation of the Commission thereunder;
(h) Promptly from time to time to take such action as the
Underwriter may reasonably request to qualify the Shares for offering and sale
under the securities laws of such jurisdictions as the Underwriter may request
and to comply with such laws so as to permit the continuance of sales and
dealings therein in such jurisdictions for as long as may be necessary to
complete the distribution of the Shares; provided that in connection therewith
the Fund shall not be required to qualify as a foreign corporation or to file a
general consent to service of process in any jurisdiction;
(i) For a period of 90 days from the date of the Prospectus, not
to, without the prior written consent of the Underwriter (which consent may be
given or withheld in the Underwriter's sole discretion),
10
directly or indirectly, (1) offer for sale, sell, pledge or otherwise dispose of
(or enter into any transaction or device which is designed to, or could be
expected to, result in the disposition by any person at any time in the future
of) any senior securities (as defined in the 1940 Act), or securities
convertible into or exchangeable for senior securities of the Fund, or sell or
grant options, rights or warrants with respect to any senior securities, of the
Fund, or (2) enter into any swap or other derivatives transaction that transfers
to another, in whole or in part, any of the economic benefits or risks of
ownership of such senior securities of the Fund, whether any such transaction
described in clause (1) or (2) above is to be settled by delivery of other
securities of the Fund, in cash or otherwise, in each case, except for Common
Shares issued to the holder's of the Fund's Common Shares pursuant to the Fund's
Automatic Dividend Reinvestment Plan;
(j) To apply the net proceeds from the sale of the Shares in a
manner consistent with the investment objectives, policies and restrictions of
the Fund as set forth in the Prospectus; and
(k) To comply with the undertaking set forth in paragraph 6 of
Item 33 of Part C of the Registration Statement.
SECTION 7. Expenses. The Fund agrees to pay (a) the costs incident to the
authorization, issuance, sale and delivery of the Shares and any taxes payable
in that connection; (b) the costs incident to the preparation, printing and
filing under the Securities Act and the 1940 Act of the Registration Statement
and any amendments and exhibits thereto, the 1940 Act Notification; (c) the
costs of distributing the Registration Statement as originally filed and each
amendment thereto and any post-effective amendments thereof (including, in each
case, exhibits), any Preliminary Prospectus, the Prospectus and any amendment or
supplement to the Prospectus, all as provided in this Agreement; (d) the fees
and expenses of the Auction Agent as set forth in the Auction Agency Agreement;
(e) the fees and expenses of qualifying the Shares under the securities laws of
the several jurisdictions as provided in Section 6(h) and of preparing, printing
and distributing a Blue Sky Memorandum (including related fees and expenses of
counsel to the Underwriter); (f) the fees and disbursements of counsel for the
Underwriter, up to $100,000; (g) the fees and expenses of the Fund's accountants
and the fees and expenses of counsel for the Fund and of the transfer agent; (h)
the fees paid to the Rating Agencies and (i) all other costs and expenses
incident to the performance of the obligations of the Fund under this Agreement
to the extent not otherwise assumed by the Advisers or the Underwriter under
this Agreement, the Fund Agreements or the Advisers Agreements.
SECTION 8. Conditions of Underwriter's Obligations. The respective obligations
of the Underwriter hereunder are subject to the accuracy, when made and on the
Delivery Date, of the representations and warranties of the Fund and each of the
Advisers contained herein, to the performance by the Fund and each of the
Advisers of their respective obligations hereunder, and to each of the following
additional terms and conditions:
(a) The Prospectus shall have been timely filed with the
Commission in accordance with Section 6(a); no stop order suspending the
effectiveness of the Registration Statement or any part thereof shall have been
issued and no proceeding for that purpose shall have been initiated or
threatened by the Commission; and any request of the Commission for inclusion of
additional information in the Registration Statement or the Prospectus or
otherwise shall have been complied with.
(b) All corporate proceedings and other legal matters incident to
the authorization, form and validity of this Agreement, the Fund Agreements, the
Advisers Agreements, the Shares, the Registration Statement and the Prospectus,
and all other legal matters relating to this Agreement and the transactions
contemplated hereby shall be reasonably satisfactory in all material respects to
counsel for the
11
Underwriter, and the Fund shall have furnished to such counsel all documents and
information that it may reasonably request to enable it to pass upon such
matters.
(c) ▇▇▇▇▇▇▇ ▇▇▇▇ & ▇▇▇▇▇ LLP, as counsel to the Fund, shall have
furnished to the Underwriter their written opinion, addressed to the Underwriter
and dated as of the Delivery Date, in form and substance reasonably satisfactory
to the Underwriter, to the effect that:
(i) The Fund has been duly formed and is validly existing
as a statutory trust in good standing under the laws of Delaware, is duly
registered and qualified to do business and is in good standing in each
jurisdiction in which its ownership or lease of property or the conduct of its
business as described in the Registration Statement and the Prospectus (and any
amendment or supplement to either) requires such qualification, and has all
statutory trust power and authority necessary to own or hold property and to
conduct the business as described in the Registration Statement and the
Prospectus (and any amendment or supplement to either), except where the failure
to so qualify or to be in good standing would not reasonably be expected to have
a Material Adverse Effect;
(ii) The Fund has an authorized capitalization as set
forth in the Registration Statement and the Prospectus (or any amendment or
supplement thereto through the date of the opinion). All of the issued shares of
capital stock of the Fund have been duly and validly authorized and issued, were
issued in compliance with federal and state securities laws, are fully paid and
non-assessable and conform to the description thereof contained in the
Registration Statement and the Prospectus (or any amendment or supplement
thereto through the date of the opinion). The Shares being delivered on the
Delivery Date to the Underwriter hereunder have been duly and validly authorized
and, when issued and delivered against payment therefor will be duly and validly
issued, fully paid and non-assessable;
(iii) The form of certificate for the Shares complies with
all applicable laws;
(iv) Except as described in the Prospectus under the
heading "Certain Provisions of the Declaration of Trust and By-Laws," there are
no preemptive or other rights to subscribe for or to purchase, nor any
restriction upon the voting or transfer of, shares of any capital stock of the
Fund pursuant to the Declaration of Trust or By-laws or any agreement or other
instrument known to such counsel;
(v) The Fund is not (i) in violation of the Declaration
of Trust or By-laws, (ii) in default, and no event has occurred which, with
notice or lapse of time or both, would constitute such a default, in the due
performance or observance of any term, covenant or condition contained in any
indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument to which it is a party or by which it is bound or to which any of its
properties or assets is subject or (iii) in violation of any law, ordinance,
governmental rule, regulation or court decree to which it or its property or
assets may be subject or has failed to obtain any material license, permit,
certificate, franchise or other governmental authorization or permit necessary
to the ownership of its property or to the conduct of its business, except in
the case of clauses (ii) and (iii), such defaults, events, violations or
failures that in the aggregate would not reasonably be expected to have a
Material Adverse Effect;
(vi) To the best of such counsel's knowledge and other
than as set forth in the Prospectus, there are no legal or governmental
proceedings pending to which the Fund is a party or of which any property or
assets of the Fund is the subject which is reasonably likely to be determined
adversely to the Fund and, if determined adversely to the Fund, would be
reasonably likely to have a Material Adverse Effect; and, to the best of such
counsel's knowledge, no such proceedings are threatened or contemplated by
governmental authorities or threatened by others;
12
(vii) The Registration Statement was declared effective
under the Securities Act as of the date and time specified in such opinion, the
Prospectus was filed with the Commission pursuant to the Rule 497 of the 1933
Act Rules and Regulations specified in such opinion on the date specified
therein and no stop order suspending the effectiveness of the Registration
Statement or any part thereof has been issued and, to the knowledge of such
counsel, no proceeding for that purpose is pending or threatened by the
Commission;
(viii) The Registration Statement and the Prospectus and any
further amendments or supplements thereto made by the Fund prior to such
Delivery Date (except for the financial statements and related schedules
therein, as to which such counsel need express no belief) comply as to form in
all material respects with the requirements of the Securities Act, the 1940 Act
and the Rules and Regulations;
(ix) The statements made in the Prospectus (including the
statement of additional information) under the captions "Rating Agency
Guidelines", "Description of Shares of MMP," "Description of Capital Structure,"
"Certain Provisions of the Declaration of Trust and Amended By-laws," "Appendix
A - Auction Procedures" and "Appendix B - Settlement Procedures" insofar as they
purport to summarize the provisions of documents or agreements specifically
referred to therein, fairly present the information called for with respect
thereto by Form N-2.
(x) The statements contained in the Registration
Statement and the Prospectus (and any amendment or supplement thereto through
the date of the opinion), insofar as they describe matters of law, legal
proceedings, legal conclusions, the Fund's Declaration of Trust and By-laws,
contracts, agreements or other legal documents or refer to federal statutes,
rules and regulations, have been reviewed by such counsel, are correct in all
material respects and constitute a fair summary thereof and the opinion of such
counsel filed as Exhibit l(1) to the Registration Statement is confirmed and the
Underwriter may rely upon such opinion as if it were addressed to them;
(xi) To the best of such counsel's knowledge, there are no
contracts or other documents which are required to be described in the
Registration Statement and the Prospectus or filed as exhibits to the
Registration Statement by the Securities Act, the 1940 Act or by the Rules and
Regulations which have not been described in the Registration Statement and the
Prospectus or filed as exhibits to the Registration Statement;
(xii) This Agreement and each of the Fund Agreements has
been duly authorized, executed and delivered by the Fund and constitute the
valid and legally binding agreements of the Fund, enforceable against the Fund
in accordance with their terms, except as rights to indemnity and contribution
hereunder may be limited by federal or state securities laws and subject to the
qualification that the enforceability of the Fund's obligations hereunder and
thereunder may be limited by bankruptcy, insolvency, reorganization, moratorium
and other laws relating to or affecting creditors' rights generally and by
general equitable principles;
(xiii) The issue and sale of the Shares being delivered on
such Delivery Date by the Fund pursuant to this Agreement and the execution,
delivery and performance by the Fund of this Agreement and each of the Fund
Agreements and the consummation of the transactions contemplated hereby and
thereby will not (i) conflict with or result in a breach or violation of any of
the terms or provisions of, or constitute a default under, any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument known
to such counsel to which the Fund is a party or by which the Fund is bound or to
which any of the property or assets of the Fund is subject, (ii) result in any
violation of the provisions of the Declaration of Trust or By-laws or (iii)
result in the violation of any statute or any order, rule or regulation known to
such counsel of any court or governmental agency or body having jurisdiction
over the Fund or any of their properties or assets, except in the case of
clauses (i) and (iii), such conflicts,
13
breaches or violations that in the aggregate would not reasonably be expected to
have a Material Adverse Effect; and, except for the registration of the Shares
under the Securities Act and such consents, approvals, authorizations,
registrations or qualifications as may be required under the Exchange Act and
applicable state securities laws in connection with the purchase and
distribution of the Shares by the Underwriter, no consent, approval,
authorization or order of, or filing or registration with, any such court or
governmental agency or body is required for the execution, delivery and
performance of this Agreement and the Fund Agreements by the Fund and the
consummation of the transactions contemplated hereby, except for such consents,
approvals, authorizations, orders, filings or registrations as have been
obtained or made;
(xiv) This Agreement, the Fund Agreements and the Advisers
Agreements comply in all material respects with all applicable provisions of the
1940 Act, the Advisers Act, the 1940 Act Rules and Regulations and the Advisers
Act Rules and Regulations;
(xv) The description of each Adviser and its business, and
the statements attributable to each Adviser, in the Registration Statement and
the Prospectus (and any amendment or supplement thereto) complied and comply in
all material respects with the provisions of the Securities Act, the 1940 Act,
the Advisers Act, the Rules and Regulations and the Advisers Act Rules and
Regulations;
(xvi) To the best of such counsel's knowledge, there are no
contracts, agreements or understandings between the Fund and any person granting
such person the right to require the Fund to file a registration statement under
the Securities Act with respect to any securities of the Fund owned or to be
owned by such person or to require the Fund to include such securities in the
securities registered pursuant to the Registration Statement or in any
securities being registered pursuant to any other registration statement filed
by the Fund under the Securities Act;
(xvii) The Fund owns, licenses or otherwise possesses
adequate rights to use all Intellectual Property necessary for the conduct of
the Fund's business as now conducted or as proposed in the Prospectus to be
conducted;
(xviii) The Fund is duly registered under the 1940 Act as a
closed-end, diversified management investment company and the 1940 Act
Notification has been duly filed with the Commission, and, at the time of filing
thereof and at the time of filing any amendment or supplement thereto, conformed
in all material respects with all applicable provisions of the 1940 Act and the
1940 Act Rules and Regulations and, to the best of such counsel's knowledge
after reasonable inquiry, the Fund has not received any notice from the
Commission pursuant to Section 8(e) of the 1940 Act with respect to the 1940 Act
Notification or the Registration Statement (or any amendment or supplement to
either of them);
(xix) The statements made in the Registration Statement and
the Prospectus (and any amendment or supplement thereto through the date of the
opinion) under the caption "U.S. Federal Income Tax Matters" have been reviewed
by such counsel and to the extent they describe or summarize tax laws, legal
conclusions, doctrines or practices of the United States, present a fair and
accurate description or summary thereof as of the date of the opinion; and
In rendering such opinion, such counsel may state that their opinion is
limited to matters governed by the Federal laws of the United States of America,
the laws of the State of New York, the General Corporation Law of the State of
Delaware and the Delaware Statutory Trust Act. To the extent such counsel deem
proper and to the extent specified in such opinion, such counsel may rely, as to
matters involving the application of laws of the State of Delaware upon the
opinion of ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇ & ▇▇▇▇▇▇, P.A. or other counsel of good standing
whom such counsel believe to be reliable and who are satisfactory to the
Underwriter; provided that (x) such reliance is expressly authorized by the
opinion so relied upon
14
and a copy of each such opinion is delivered to the Underwriter and is, in form
and substance, satisfactory to it and its counsel and (y) such counsel state in
their opinion that they believe that they and the Underwriter are justified in
relying thereon.
Such opinion shall also be to the effect that (x) such counsel has
acted as counsel to the Fund in connection with the preparation of the
Registration Statement and (y) based on the foregoing, no facts have come to the
attention of such counsel which would lead such counsel to believe that the
Registration Statement (except for the financial statements and related
schedules therein, as to which such counsel need express no belief) as of the
Effective Date, contained any untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary in order to
make the statements therein not misleading, or that the Prospectus (except as
stated above) contains any untrue statement of a material fact or omits to state
a material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading. The foregoing opinion and statement may be qualified by a
statement to the effect that such counsel does not assume any responsibility for
the accuracy, completeness or fairness of the statements contained in the
Registration Statement or the Prospectus (other than as set forth in clauses
(ix), (x) and (xix) above).
(d) Counsel to each of the Advisers, shall have furnished to the
Underwriter their written opinion, addressed to the Underwriter and dated such
Delivery Date, in form and substance reasonably satisfactory to the Underwriter,
to the effect that:
(i) Each Adviser has been duly incorporated, organized or
formed and is validly existing as a corporation or limited liability company, as
the case may be, in good standing under the laws of its jurisdiction of
incorporation, is duly registered and qualified to do business and is in good
standing in each jurisdiction in which its ownership or lease of property or the
conduct of its business as described in the Registration Statement and the
Prospectus (and any amendment or supplement to either) requires such
qualification, and has all corporate or limited liability company power and
authority necessary to own or hold their respective properties and to conduct
the business as described in the Registration Statement and the Prospectus (and
any amendment or supplement to either), except where the failure to so qualify
or to be in good standing would not reasonably be expected to have a Material
Adverse Effect;
(ii) Each Adviser is duly registered as an investment
adviser under the Advisers Act and is not prohibited by the Advisers Act, the
1940 Act, the Advisers Act Rules and Regulations or the 1940 Act Rules and
Regulations from acting under the Fund Agreements (to which each Adviser is a
party) or the Advisers Agreements (to which each Adviser is a party) as
contemplated by the Registration Statement and the Prospectus (or any amendment
or supplement thereto);
(iii) This Agreement, the Advisory Agreement and the
Advisors Agreements have each been duly authorized, executed and delivered by
each Adviser that is a party to such agreement, and constitute the valid and
legally binding agreements of each Adviser, enforceable against each Adviser in
accordance with their terms, except as rights to indemnity and contribution
hereunder may be limited by federal or state securities laws and subject to the
qualification that the enforceability of each Adviser's obligations hereunder
and thereunder may be limited by bankruptcy, insolvency, reorganization,
moratorium and other laws relating to or affecting creditors' rights generally
and by general equitable principles;
(iv) The execution, delivery and performance of this
Agreement, the Advisory Agreement and the Advisors Agreements by each Adviser
that is a party to such agreement and the consummation of the transactions
contemplated hereby and thereby will not (i) conflict with or result in a breach
or violation of any of the terms or provisions of, or constitute a default
under, any indenture, mortgage, deed of trust, loan agreement or other agreement
or instrument to which such Adviser is a party
15
or by which such Adviser is bound or to which any of the property or assets of
such Adviser is subject, (ii) result in any violation of the provisions of the
charter documents or by-laws of such Adviser or (iii) result in any violation of
any statute or any order, rule or regulation of any court or governmental agency
or body having jurisdiction over such Adviser or any of its properties or
assets, except in the case of clauses (i) and (iii), such conflicts, breaches
and violations that in the aggregate would not reasonably be expected to have a
Material Adverse Effect; and except for the registration of the Shares under the
Securities Act and such consents, approvals, authorizations, registrations or
qualifications as may be required under the Exchange Act and applicable state
securities laws in connection with the purchase and distribution of the Shares
by the Underwriter, no consent, approval, authorization or order of, or filing
or registration with, any such court or governmental agency or body is required
for the execution, delivery and performance of this Agreement, the Advisory
Agreement and the Advisors Agreements (to which the Advisor is a party) and the
consummation of the transactions contemplated hereby and thereby; and
(v) To the best of such counsel's knowledge and other
than as set forth in the Prospectus, there are no legal or governmental
proceedings pending to which any Adviser is a party or of which any property or
assets of any Adviser is the subject which is reasonably likely to be determined
adversely to such Adviser and, if determined adversely to such Adviser, would be
reasonably likely to have a Material Adverse Effect; and, to the best of such
counsel's knowledge, no such proceedings are threatened or contemplated by
governmental authorities or threatened by others.
In rendering such opinion, such counsel may state that their opinion is
limited to matters governed by the Federal laws of the United States of America,
the laws of the State of New York, the General Corporation Law of the State of
Delaware and the Delaware Statutory Trust Act. To the extent such counsel deem
proper and to the extent specified in such opinion, such counsel may rely, as to
matters involving the application of laws of the State of Delaware upon the
opinion of ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇ & ▇▇▇▇▇▇, P.A. or other counsel of good standing
whom such counsel believe to be reliable and who are satisfactory to the
Underwriter; provided that (x) such reliance is expressly authorized by the
opinion so relied upon and a copy of each such opinion is delivered to the
Underwriter and is, in form and substance, satisfactory to it and its counsel
and (y) such counsel state in their opinion that they believe that they and the
Underwriter are justified in relying thereon.
Such opinion shall also be to the effect that (x) such counsel has
acted as counsel to the Advisers in connection with the preparation of the
Registration Statement and (y) based on the foregoing, no facts have come to the
attention of such counsel which would lead such counsel to believe that the
Registration Statement (except for the financial statements and related
schedules therein, as to which such counsel need express no belief) as of the
Effective Date, contained any untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary in order to
make the statements therein not misleading, or that the Prospectus (except as
stated above) contains any untrue statement of a material fact or omits to state
a material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading. The foregoing opinion and statement may be qualified by a
statement to the effect that such counsel does not assume any responsibility for
the accuracy, completeness or fairness of the statements contained in the
Registration Statement or the Prospectus.
(e) The Underwriter shall have received from ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ &
▇▇▇▇▇▇▇▇ LLP, counsel for the Underwriter, such opinion or opinions, dated such
Delivery Date, with respect to the issuance and sale of the Shares, the
Registration Statement, the Prospectus and other related matters as the
Underwriter may reasonably require, and the Fund shall have furnished to such
counsel such documents as they reasonably request for the purpose of enabling
them to pass upon such matters.
16
(f) At the time of execution of this Agreement, the Underwriter
shall have received from Ernst & Young LLP a letter or letters, in form and
substance satisfactory to the Underwriter, addressed to the Underwriter and
dated the date hereof (i) confirming that they are independent public
accountants within the meaning of the Securities Act and are in compliance with
the applicable requirements relating to the qualification of accountants under
Rule 2-01 of Regulation S-X of the Commission and (ii) stating, as of the date
hereof (or, with respect to matters involving changes or developments since the
respective dates as of which specified financial information is given in the
Prospectus, as of a date not more than five days prior to the date hereof), the
conclusions and findings of such firm with respect to the financial information
and other matters ordinarily covered by accountants' "comfort letters" to
underwriters in connection with registered public offerings.
(g) With respect to the letter or letters of ▇▇▇▇▇ & Young LLP
referred to in the preceding paragraph and delivered to the Underwriter
concurrently with the execution of this Agreement (the "INITIAL LETTERS"), the
Fund shall have furnished to the Underwriter a letter (the "BRING-DOWN LETTER")
of such accountants, addressed to the Underwriter and dated such Delivery Date
(i) confirming that they are independent public accountants within the meaning
of the Securities Act and are in compliance with the applicable requirements
relating to the qualification of accountants under Rule 2-01 of Regulation S-X
of the Commission, (ii) stating, as of the date of the bring-down letter (or,
with respect to matters involving changes or developments since the respective
dates as of which specified financial information is given in the Prospectus, as
of a date not more than five days prior to the date of the bring-down letter),
the conclusions and findings of such firm with respect to the financial
information and other matters covered by the initial letters and (iii)
confirming in all material respects the conclusions and findings set forth in
the initial letters.
(h) The Fund shall have furnished to the Underwriter a
certificate, dated such Delivery Date, of its Chairman of the Board of Trustees,
its President or a Vice President and its Treasurer or Assistant Treasurer
stating that:
(i) The representations, warranties and agreements of the
Fund in Section 1 are true and correct as of such Delivery Date; the Fund has
complied with all its agreements contained herein; and the conditions set forth
in Sections 8(a) and 8(i) have been fulfilled; and
(ii) They have carefully examined the Registration
Statement and the Prospectus and, in their opinion (A) as of the Effective Date,
the Registration Statement and the Prospectus did not include any untrue
statement of a material fact and did not omit to state a material fact required
to be stated therein or necessary to make the statements therein not misleading,
and (B) since the Effective Date no event has occurred which should have been
set forth in a supplement or amendment to the Registration Statement or the
Prospectus which has not been so set forth.
(i) The Fund shall not have sustained since the date of the latest
audited financial statements included in the Prospectus (A) any loss or
interference with its business from fire, explosion, flood or other calamity,
whether or not covered by insurance, or from any labor dispute or court or
governmental action, order or decree, or (B) since such date, there shall not
have been any change in the capital stock or long-term debt of the Fund or any
change, or any development involving a prospective change, in or affecting the
general affairs, management, financial position, stockholders' equity, results
of operations, business or prospects of the Fund, otherwise than as set forth or
contemplated in the Prospectus, the effect of which, in any such case described
in clause (A) or (B), is, in the judgment of the Underwriter, so material and
adverse as to make it impracticable or inadvisable to proceed with the public
offering or the delivery of the Shares being delivered on such Delivery Date on
the terms and in the manner contemplated in the Prospectus.
17
(j) Each of the Advisers shall have furnished to the Underwriter a
certificate, dated such Delivery Date, of its Chairman of the Board of
Directors, its President, its Chief Executive Officer or a Vice President and
its chief financial officer, Controller or Assistant Controller stating that:
(i) The representations, warranties and agreements of
such Adviser in Sections 1 and 2 are true and correct as of such Delivery Date;
and such Adviser has complied with all its agreements contained herein;
(ii) They have carefully examined the Registration
Statement and the Prospectus and, in their opinion (A) as of the Effective Date,
the Registration Statement and the Prospectus did not include any untrue
statement of a material fact and did not omit to state a material fact required
to be stated therein or necessary to make the statements therein not misleading,
and (B) since the Effective Date no event has occurred which should have been
set forth in a supplement or amendment to the Registration Statement or the
Prospectus which has not been so set forth; and
(iii) Such Adviser is not (i) in violation of its charter
documents or by-laws, (ii) in default, and no event has occurred which, with
notice or lapse of time or both, would constitute such a default, in the due
performance or observance of any term, covenant or condition contained in any
indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument to which it is a party or by which it is bound or to which any of its
properties or assets is subject or (iii) in violation of any law, ordinance,
governmental rule, regulation or court decree to which it or its property or
assets may be subject or has failed to obtain any material license, permit,
certificate, franchise or other governmental authorization or permit necessary
to the ownership of its property or to the conduct of its business, except in
the case of clauses (ii) and (iii), such defaults, events, violations or
failures that in the aggregate would not reasonably be expected to have a
Material Adverse Effect.
(k) Neither the Fund nor the Advisers shall have failed at or
prior to the Delivery Date to have performed or complied with any of the
agreements contained herein and required to be performed or complied with by
them at or prior to the Delivery Date.
(l) Subsequent to the execution and delivery of this Agreement
there shall not have occurred any of the following: (i) trading in securities
generally on the NYSE or the American Stock Exchange or in the over-the-counter
market, or trading in any securities of the Fund on any exchange or in the
over-the-counter market, shall have been suspended or materially limited or the
settlement of such trading generally shall have been materially disrupted or
minimum prices shall have been established on any such exchange or such market
by the Commission, by such exchange or by any other regulatory body or
governmental authority having jurisdiction, (ii) a banking moratorium shall have
been declared by Federal or state authorities, (iii) the United States shall
have become engaged in hostilities, there shall have been an escalation in
hostilities involving the United States or there shall have been a declaration
of a national emergency or war by the United States or (iv) there shall have
occurred such a material adverse change in general economic, political or
financial conditions (or the effect of international conditions on the financial
markets in the United States shall be such), including, without limitation, as a
result of terrorist activities after the date hereof, or any other calamity or
crisis as to make it, in the judgment of the Underwriter, impracticable or
inadvisable to proceed with the public offering or delivery of the Shares being
delivered on such Delivery Date on the terms and in the manner contemplated in
the Prospectus.
(m) The Fund shall have furnished to the Underwriter a report
showing compliance with 1940 Act Asset Coverage and the MMP Basic Maintenance
Amount (as each term is defined in the By-laws), each dated as of such Delivery
Date and in form and substance satisfactory to the Underwriter. Each such report
shall assume the receipt of the net proceeds from the sale of the Shares and may
use portfolio holdings and valuation as of the close of business of any day not
more than 5 business days preceding
18
such Delivery Date, provided, however, that the Fund represents in such report
that its total net assets as of such Delivery Date has not declined by 5% or
more from such valuation date.
(n) The Fund shall have delivered and the Underwriter shall have
received evidence satisfactory to the Underwriter that the Shares are rated
"Aaa" by ▇▇▇▇▇'▇ and "AAA" by S&P as of such Delivery Date, and there shall not
have been given notice of any intended or potential downgrading, or of any
review for a potential downgrading, in the rating accorded to the Shares by
either Rating Agency.
(o) The Underwriter shall not have discovered and disclosed to the
Fund on or prior to such Delivery Date that the Registration Statement or the
Prospectus or any amendment or supplement thereto contains an untrue statement
of a fact which, in the reasonable opinion of ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇▇ LLP,
counsel for the Underwriter, is material or omits to state a fact which, in the
reasonable opinion of such counsel, is material and is required to be stated
therein or is necessary to make the statements therein not misleading.
(p) The Fund and the Advisers shall have furnished to you such
further certificates, documents and opinions of counsel as you shall reasonably
request (including certificates of officers of the Fund and the Advisers).
All opinions, letters, evidence and certificates mentioned above or
elsewhere in this Agreement shall be deemed to be in compliance with the
provisions hereof only if they are in form and substance reasonably satisfactory
to counsel for the Underwriter.
SECTION 9. Indemnification and Contribution.
(a) The Fund and the Advisers shall jointly and severally
indemnify and hold harmless the Underwriter, its directors, officers and
employees and each person, if any, who controls the Underwriter within the
meaning of the Securities Act, from and against any loss, claim, damage or
liability, joint or several, or any action in respect thereof (including, but
not limited to, any loss, claim, damage, liability or action relating to
purchases and sales of Shares), to which the Underwriter, director, officer,
employee or controlling person may become subject, under the Securities Act or
otherwise, insofar as such loss, claim, damage, liability or action arises out
of, or is based upon, (i) any untrue statement or alleged untrue statement of a
material fact contained (A) in any Preliminary Prospectus, the Registration
Statement or the Prospectus or in any amendment or supplement thereto including
information deemed to be a part of the Registration Statement pursuant to Rule
430A of the Rules and Regulations, if applicable, or (B) in any Marketing
Materials, (ii) the omission or alleged omission to state in any Preliminary
Prospectus, the Registration Statement or the Prospectus, or in any amendment or
supplement thereto, or in any Marketing Materials, any material fact required to
be stated therein or necessary to make the statements therein not misleading or
(iii) any act or failure to act or any alleged act or failure to act by any
Underwriter in connection with, or relating in any manner to, the Shares or the
offering contemplated hereby, and which is included as part of or referred to in
any loss, claim, damage, liability or action arising out of or based upon
matters covered by clause (i) or (ii) above (provided that neither the Fund nor
the Advisers shall be liable under this clause (iii) to the extent that it is
determined in a final judgment by a court of competent jurisdiction that such
loss, claim, damage, liability or action resulted directly from any such acts or
failures to act undertaken or omitted to be taken by such Underwriter through
its gross negligence or willful misconduct), and shall reimburse the Underwriter
and each such director, officer, employee or controlling person promptly upon
demand for any legal or other expenses reasonably incurred by the Underwriter,
director, officer, employee or controlling person in connection with
investigating or defending or preparing to defend against any such loss, claim,
damage, liability or action as such expenses are incurred; provided, however,
that neither the Fund nor the Advisers shall be liable in
19
any such case to the extent that any such loss, claim, damage, liability or
action (i) arises out of, or is based upon, any untrue statement or alleged
untrue statement or omission or alleged omission made in any Preliminary
Prospectus, the Registration Statement or the Prospectus, or in any such
amendment or supplement, in reliance upon and in conformity with written
information concerning the Underwriter furnished to the Fund or the Advisers
through the Underwriter by or on behalf of any Underwriter specifically for
inclusion therein which information consists solely of the information specified
in Section 9(e); or (ii) results solely from an untrue statement of material
fact contained in, or the omission of a material fact from, a Preliminary
Prospectus, which untrue statement or omission was corrected in the Prospectus
(as then amended or supplemented) if the Fund shall sustain the burden of
proving that (A) the Underwriter sold Shares to the person alleging such loss,
claim, damage, liability or action without sending or giving, at or prior to the
written confirmation of such sale, a copy of the Prospectus (as then amended or
supplemented), (B) within a reasonable amount of time prior to such sale or such
confirmation, the Fund had furnished to the Underwriter copies of the corrected
Prospectus which, if delivered, would have cured the defect giving rise to such
loss, claim, damage, liability or action, and (C) the Underwriter failed to
deliver such corrected Prospectus. The foregoing indemnity agreement is in
addition to any liability which the Fund or the Advisers may otherwise have to
any Underwriter or to any director, officer, employee or controlling person of
that Underwriter.
(b) The Underwriter shall indemnify and hold harmless the Fund,
its officers and employees, each of its trustees, and each person, if any, who
controls the Fund within the meaning of the Securities Act, from and against any
loss, claim, damage or liability, joint or several, or any action in respect
thereof, to which the Fund or any such trustee, officer or controlling person
may become subject, under the Securities Act or otherwise, insofar as such loss,
claim, damage, liability or action arises out of, or is based upon, (i) any
untrue statement or alleged untrue statement of a material fact contained in any
Preliminary Prospectus, the Registration Statement or the Prospectus or in any
amendment or supplement thereto, or (ii) the omission or alleged omission to
state in any Preliminary Prospectus, the Registration Statement or the
Prospectus, or in any amendment or supplement thereto, any material fact
required to be stated therein or necessary to make the statements therein not
misleading, but in each case only to the extent that the untrue statement or
alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information concerning such Underwriter
furnished to the Fund through the Underwriter by or on behalf of that
Underwriter specifically for inclusion therein, which information is limited to
the information set forth in Section 9(e), and shall reimburse the Fund and any
such trustee, officer or controlling person for any legal or other expenses
reasonably incurred by the Fund or any such trustee, officer or controlling
person in connection with investigating or defending or preparing to defend
against any such loss, claim, damage, liability or action as such expenses are
incurred. The foregoing indemnity agreement is in addition to any liability
which the Underwriter may otherwise have to the Fund or any such trustee,
officer, employee or controlling person.
(c) Promptly after receipt by an indemnified party under this
Section 9 of notice of any claim or the commencement of any action, the
indemnified party shall, if a claim in respect thereof is to be made against the
indemnifying party under this Section 9, notify the indemnifying party in
writing of the claim or the commencement of that action; provided, however, that
the failure to notify the indemnifying party shall not relieve it from any
liability which it may have under this Section 9 except to the extent it has
been materially prejudiced by such failure and, provided further, that the
failure to notify the indemnifying party shall not relieve it from any liability
which it may have to an indemnified party otherwise than under this Section 9.
If any such claim or action shall be brought against an indemnified party, and
it shall notify the indemnifying party thereof, the indemnifying party shall be
entitled to participate therein and, to the extent that it wishes, jointly with
any other similarly notified indemnifying party, to assume the defense thereof
with counsel reasonably satisfactory to the indemnified party. After notice from
the indemnifying party to the indemnified party of its election to assume the
defense of such claim or action, the indemnifying party shall not be liable to
the indemnified party under this Section 9 for
20
any legal or other expenses subsequently incurred by the indemnified party in
connection with the defense thereof other than reasonable costs of
investigation; provided, however, that the Underwriter shall have the right to
employ counsel to represent jointly the Underwriter and its respective
directors, officers, employees and controlling persons who may be subject to
liability arising out of any claim in respect of which indemnity may be sought
by the Underwriter against the Fund or the Advisers under this Section 9 if, in
the reasonable judgment of the Underwriter, it is advisable for the Underwriter,
directors, officers, employees and controlling persons to be jointly represented
by separate counsel, and in that event the fees and expenses of such separate
counsel shall be paid by the Fund or the Advisers. No indemnifying party shall
(i) without the prior written consent of the indemnified parties (which consent
shall not be unreasonably withheld), settle or compromise or consent to the
entry of any judgment with respect to any pending or threatened claim, action,
suit or proceeding in respect of which indemnification or contribution may be
sought hereunder (whether or not the indemnified parties are actual or potential
parties to such claim or action) unless such settlement, compromise or consent
includes an unconditional release of each indemnified party from all liability
arising out of such claim, action, suit or proceeding, or (ii) be liable for any
settlement of any such action effected without its written consent (which
consent shall not be unreasonably withheld), but if settled with the consent of
the indemnifying party or if there be a final judgment of the plaintiff in any
such action, the indemnifying party agrees to indemnify and hold harmless any
indemnified party from and against any loss or liability by reason of such
settlement or judgment.
(d) If the indemnification provided for in this Section 9 shall
for any reason be unavailable to or insufficient to hold harmless an indemnified
party under Section 9(a) or 9(b) in respect of any loss, claim, damage or
liability, or any action in respect thereof, referred to therein, then each
indemnifying party shall, in lieu of indemnifying such indemnified party,
contribute to the amount paid or payable by such indemnified party as a result
of such loss, claim, damage or liability, or action in respect thereof, (i) in
such proportion as shall be appropriate to reflect the relative benefits
received by the Fund and the Advisers (treated jointly as one person for this
purpose) on the one hand and the Underwriter on the other from the offering of
the Shares or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause (i) above but also the relative
fault of the Fund and the Advisers (treated jointly as one person for this
purpose) on the one hand and the Underwriter on the other with respect to the
statements or omissions which resulted in such loss, claim, damage or liability,
or action in respect thereof, as well as any other relevant equitable
considerations. The relative benefits received by the Fund and the Advisers
(treated jointly as one person for this purpose) on the one hand and the
Underwriter on the other with respect to such offering shall be deemed to be in
the same proportion as the total net proceeds from the offering of the Shares
purchased under this Agreement (before deducting expenses) received by the Fund,
on the one hand, and the total underwriting discounts and commissions received
by the Underwriter with respect to the Shares purchased under this Agreement, on
the other hand, bear to the total gross proceeds from the offering of the Shares
under this Agreement, in each case as set forth in the table on the cover page
of the Prospectus. The relative fault shall be determined by reference to
whether the untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by the
Fund or the Advisers, on one hand, or the Underwriter, on the other hand, the
intent of the parties and their relative knowledge, access to information and
opportunity to correct or prevent such statement or omission. The Fund, the
Advisers and the Underwriter agree that it would not be just and equitable if
contributions pursuant to this Section were to be determined by pro rata
allocation (even if the Underwriter was treated as one entity for such purpose)
or by any other method of allocation which does not take into account the
equitable considerations referred to herein. The amount paid or payable by an
indemnified party as a result of the loss, claim, damage or liability, or action
in respect thereof, referred to above in this Section shall be deemed to
include, for purposes of this Section 9(d), any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any such action or claim. Notwithstanding the provisions of this
Section 9(d), the Underwriter
21
shall not be required to contribute any amount in excess of the amount by which
the total price at which the Shares underwritten by it and distributed to the
public were offered to the public exceeds the amount of any damages which the
Underwriter has otherwise paid or become liable to pay by reason of any untrue
or alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation.
(e) The Underwriter confirms and the Fund and the Advisers
acknowledge that the statements set forth in the last sentence on the front
cover page, the legend concerning prospectus delivery requirements on the inside
front cover page, the name of the Underwriter in the first paragraph, and the
third, fifth and sixth paragraphs appearing under the caption "Underwriting", as
well as the concessions and reallowance figures appearing under the caption
"Underwriting", in the Prospectus are correct and constitute the only
information concerning the Underwriter furnished in writing to the Fund by or on
behalf of the Underwriter specifically for inclusion in the Registration
Statement and the Prospectus.
SECTION 10. Termination. The obligations of the Underwriter hereunder may be
terminated by the Underwriter by notice given to and received by the Fund prior
to delivery of and payment for the Shares if, prior to that time, any of the
events described in Sections 8(i) or 8(l), shall have occurred or if the
Underwriter shall decline to purchase the Shares for any reason permitted under
this Agreement.
SECTION 11. Reimbursement of Underwriter's Expenses. If the Fund shall fail to
tender the Shares for delivery to the Underwriter by reason of any failure,
refusal or inability on the part of the Fund to perform any agreement on its
part to be performed, or because any other condition of the Underwriter's
obligations hereunder required to be fulfilled by the Fund is not fulfilled, the
Fund will reimburse the Underwriter for all reasonable out-of-pocket expenses
(including fees and disbursements of counsel) incurred by the Underwriter in
connection with this Agreement and the proposed purchase of the Shares, and upon
demand the Fund shall pay the full amount thereof to the Underwriter.
SECTION 12. Notices, Etc. All statements, requests, notices and agreements
hereunder shall be in writing, and:
(a) if to the Underwriter, shall be delivered or sent by mail,
telex or facsimile transmission to ▇▇▇▇▇▇ Brothers Inc., ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇
▇▇▇▇, ▇▇ ▇▇▇▇▇, Attention: Syndicate Department (Fax: ▇▇▇-▇▇▇-▇▇▇▇), with a
copy, in the case of any notice pursuant to Section 9(c) the Director of
Litigation, Office of the General Counsel, ▇▇▇▇▇▇ Brothers Inc., ▇▇▇ ▇▇▇▇
▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇; and with a copy to ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇▇ LLP,
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, Attention: ▇▇▇▇▇ ▇. ▇▇▇▇▇, Esq.
(Fax: (▇▇▇-▇▇▇-▇▇▇▇; Telephone (▇▇▇) ▇▇▇-▇▇▇▇);
(b) if to the Fund, shall be delivered or sent by mail, telex or
facsimile transmission to the address of the Fund set forth in the Registration
Statement, Attention: ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ (Fax: ▇▇▇-▇▇▇-▇▇▇▇); with a copy to
▇▇▇▇▇▇▇ ▇▇▇▇ & ▇▇▇▇▇ LLP, ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, Attention:
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, Esq. (Fax: (▇▇▇-▇▇▇-▇▇▇▇; Telephone (▇▇▇) ▇▇▇-▇▇▇▇). Any
such statements, requests, notices or agreements shall take effect at the time
of receipt thereof.
SECTION 13. Persons Entitled to Benefit of Agreement. This Agreement shall inure
to the benefit of and be binding upon the Underwriter, the Fund, the Advisers,
and their respective successors. This Agreement and the terms and provisions
hereof are for the sole benefit of only those persons, except that (A) the
representations, warranties, indemnities and agreements of the Fund and the
Advisers contained in this Agreement shall also be deemed to be for the benefit
of the directors, officers and the person or persons, if any, who control the
Underwriter within the meaning of Section 15 of the Securities Act and (B) the
indemnity agreement of the Underwriter contained in Section 9(b) of this
Agreement shall be
22
deemed to be for the benefit of trustees of the Fund, officers of the Fund who
have signed the Registration Statement and any person controlling the Fund
within the meaning of Section 15 of the Securities Act. Nothing in this
Agreement is intended or shall be construed to give any person, other than the
persons referred to in this Section 13, any legal or equitable right, remedy or
claim under or in respect of this Agreement or any provision contained herein.
SECTION 14. Survival. The respective indemnities, representations, warranties
and agreements of the Fund and the Underwriter contained in this Agreement or
made by or on behalf on them, respectively, pursuant to this Agreement, shall
survive the delivery of and payment for the Shares and shall remain in full
force and effect, regardless of any investigation made by or on behalf of any of
them or any person controlling any of them.
SECTION 15. Definition of the Terms "BUSINESS DAY" and "SUBSIDIARY". For
purposes of this Agreement, (a) "BUSINESS DAY" means each Monday, Tuesday,
Wednesday, Thursday or Friday which is not a day on which banking institutions
in New York are generally authorized or obligated by law or executive order to
close and (b) "SUBSIDIARY" has the meaning set forth in Rule 405 of the 1933 Act
Rules and Regulations.
SECTION 16. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of New York.
SECTION 17. Counterparts. This Agreement may be executed in one or more
counterparts and, if executed in more than one counterpart, the executed
counterparts shall each be deemed to be an original but all such counterparts
shall together constitute one and the same instrument.
SECTION 18. Headings. The headings herein are inserted for convenience of
reference only and are not intended to be part of, or to affect the meaning or
interpretation of, this Agreement.
23
If the foregoing correctly sets forth the agreement among the Fund, the
Advisers and the Underwriter, please indicate your acceptance in the space
provided for that purpose below.
Very truly yours,
▇▇▇▇▇▇ BROTHERS/FIRST TRUST INCOME
OPPORTUNITY FUND
By
-----------------------------------
Name:
----------------------------
Title:
-------------------------
▇▇▇▇▇▇ BROTHERS ASSET MANAGEMENT INC.
By
-----------------------------------
Name:
Title:
LINCOLN CAPITAL FIXED INCOME
MANAGEMENT COMPANY, LLC
By
-----------------------------------
Name:
Title:
Accepted:
▇▇▇▇▇▇ Brothers Inc.
By
-----------------------------
Name:
Title:
24