EXHIBIT (k)(5)
[ ], 2005
▇▇▇▇▇ ▇▇▇▇▇ Management
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
[FORM OF] ADDITIONAL COMPENSATION AGREEMENT
Ladies and Gentlemen:
Reference is made to the Underwriting Agreement dated September 27, 2005 (the
"Underwriting Agreement"), by and among ▇▇▇▇▇ ▇▇▇▇▇ Tax-Managed Global Buy-Write
Opportunities Fund, a closed-end management investment company (the "Fund"),
▇▇▇▇▇ ▇▇▇▇▇ Management ("▇▇▇▇▇ ▇▇▇▇▇" or the "Investment Adviser"), Rampart
Investment Management Company, Inc., Parametric Portfolio Associates LLC and
each of the respective Underwriters named therein, with respect to the issue and
sale of the Fund's common shares of beneficial interest, par value $0.01 per
share (the "Common Shares"), as described therein. Reference is also made to (i)
the Investment Advisory Agreement, dated April 18, 2005 (the "Investment
Advisory Agreement") between ▇▇▇▇▇ ▇▇▇▇▇ and the Fund and (ii) the registration
statement on Form N-2 regarding the Common Shares of the Fund (the "Registration
Statement"). Capitalized terms used herein and not otherwise defined shall have
the meanings given to them in the Underwriting Agreement.
▇▇▇▇▇ ▇▇▇▇▇ hereby confirms its agreement with each Qualifying Underwriter (as
defined in Section 1 hereof) with respect to the additional compensation
referred to in the "Underwriting" section of the Registration Statement, payable
by ▇▇▇▇▇ ▇▇▇▇▇ to each of the Qualifying Underwriters. ▇▇▇▇▇ ▇▇▇▇▇ agrees to pay
to each Qualifying Underwriter additional compensation (collectively, the
"Additional Compensation") as provided for in Section 3 hereof; provided,
however, that such Additional Compensation shall not exceed an amount equal to
0.15% per annum of the aggregate average daily gross assets of the Fund
(including assets attributable to any preferred shares of the Fund that may be
outstanding); and provided, further, that such payments shall not exceed the
"Maximum Additional Compensation Amount" (as defined in Section 4 hereof). The
Additional Compensation shall be payable as set forth in Section 3 hereof.
SECTION 1. Qualifying Underwriters. For the purposes of this Additional
Compensation Agreement, each Underwriter (other than UBS Securities LLC), which
sells Common Shares of the Fund with an aggregate purchase price to the public
of at least $50,000,000 shall be a "Class I Qualifying Underwriter" and each
Underwriter (other than UBS Securities LLC), which sells Common Shares of the
Fund with an aggregate purchase price to the public of at least $100,000,000
shall be a "Class II Qualifying Underwriter"; provided, however, that the
amounts required to qualify as a Class I Qualifying Underwriter or a Class II
Qualifying Underwriter may be reduced with respect to any Underwriter in the
sole discretion of ▇▇▇▇▇ ▇▇▇▇▇. Class I Qualifying Underwriters and Class II
Qualifying Underwriters are referred to collectively herein as "Qualifying
Underwriters." A Qualifying Underwriter which qualifies as a Class II Qualifying
Underwriter shall not also be a Class I Qualifying Underwriter. Within 60 days
following the Closing Date, the Qualifying Underwriters shall prepare or cause
to be prepared and provide to ▇▇▇▇▇ ▇▇▇▇▇ a chart listing each of the Qualifying
Underwriters, which chart shall indicate the aggregate purchase price to the
public of the Common Shares sold by each Qualifying Underwriter and the Pro Rata
Percentage (as defined in Section 2 hereof) of each Qualifying Underwriter and
shall be appended as Schedule A to this Additional Compensation Agreement. Such
Schedule A shall be prepared in good faith by the Qualifying Underwriters and
subject to verification by ▇▇▇▇▇ ▇▇▇▇▇.
SECTION 2. Pro Rata Percentage. Each Qualifying Underwriter shall be assigned a
"Pro Rata Percentage," the numerator of which shall equal the aggregate purchase
price to the public of the Common Shares sold by such Underwriter as set forth
on Schedule A hereto and the denominator of which shall equal the aggregate
purchase price to the public of all of the Common Shares purchased by the
Underwriters pursuant to the Underwriting Agreement.
SECTION 3. Payment of Additional Compensation.
(a) ▇▇▇▇▇ ▇▇▇▇▇ shall pay the Additional Compensation, quarterly in
arrears, to each Class I Qualifying Underwriter in an amount equal to the
product of such Qualifying Underwriter's Pro Rata Percentage multiplied by
0.0250% of the aggregate average daily gross assets of the Fund for such
quarter.
(b) ▇▇▇▇▇ ▇▇▇▇▇ shall pay the Additional Compensation, quarterly in
arrears, to each Class II Qualifying Underwriter in an amount equal to the
product of such Qualifying Underwriter's Pro Rata Percentage multiplied by
0.0375% of the aggregate average daily gross assets of the Fund for such
quarter.
(c) All fees payable hereunder shall be paid to each Qualifying
Underwriter by wire transfer of immediately available funds within 15 days
following the end of each calendar quarter to a bank account designated by such
Qualifying Underwriter. At the time of each payment of Additional Compensation
hereunder, ▇▇▇▇▇ ▇▇▇▇▇ shall deliver to each Qualifying Underwriter receiving an
installment of Additional Compensation a statement indicating the amount of the
of the aggregate average daily gross asset value of the Fund for such quarter
(including assets attributable to any preferred shares of the Fund that may be
outstanding) on which such payment was based.
(d) The initial payments of Additional Compensation hereunder shall be
paid with respect to the calendar quarter ending [ ], 2005. In the event that
this Additional Compensation Agreement terminates prior to the end of a calendar
quarter, the Additional Compensation required to be paid hereunder shall be due
and payable within 15 days following the termination hereof and shall be
pro-rated in respect of the period prior to such termination. Notwithstanding
the foregoing, if any payment hereunder would otherwise fall on a day which is
not a business day, it shall be due on the next day which is a business day. All
fees payable hereunder shall be in addition to any fees paid by the Investment
Adviser pursuant to the Underwriting Agreement.
SECTION 4. Maximum Additional Compensation Amount. The "Maximum Additional
Compensation Amount" payable by the Investment Adviser hereunder shall be 4.5%
of the aggregate offering price of the Common Shares. [ ] will receive
additional compensation which will not exceed [0.52]% of the aggregate initial
offering price of the Common Shares, [ ] will receive additional
compensation which will not exceed [0.52]% of the aggregate initial offering
price of the Common Shares and [ ] will received additional compensation
which will not exceed [0.13]% of the aggregate initial offering price of the
Common Shares.
SECTION 5. Term. This Additional Compensation Agreement shall continue
coterminously with and so long as the Investment Advisory Agreement, dated April
18, 2005, remains in effect between the Fund and ▇▇▇▇▇ ▇▇▇▇▇, or any similar
investment advisory agreement with a successor in interest or affiliate of ▇▇▇▇▇
▇▇▇▇▇ remains in effect, as, and to the extent, that such investment advisory
agreement is renewed periodically in accordance with the Investment Company Act
of 1940, as amended. This Additional Compensation Agreement shall terminate on
the earliest to occur of (a) with respect to any Qualifying Underwriter, the
payment by ▇▇▇▇▇ ▇▇▇▇▇ to such Qualifying Underwriter of the Maximum Additional
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Compensation Amount, (b) with respect to the Fund, the dissolution and winding
up of the Fund and (c) with respect to the Fund, the date on which the
Investment Advisory Agreement or other investment advisory agreement between the
Fund and ▇▇▇▇▇ ▇▇▇▇▇ or any successor in interest to ▇▇▇▇▇ ▇▇▇▇▇, including but
not limited to an affiliate of ▇▇▇▇▇ ▇▇▇▇▇, shall terminate.
SECTION 6. Not an Investment Adviser. ▇▇▇▇▇ ▇▇▇▇▇ acknowledges that the
Underwriters are not providing any advice hereunder as to the value of
securities or regarding the advisability of purchasing or selling any securities
for the Fund. No provision of this Additional Compensation Agreement shall be
considered as creating, nor shall any provision create, any obligation on the
part of any Underwriter, and the Underwriters are not hereby agreeing, to: (i)
furnish any advice or make any recommendations regarding the purchase or sale of
portfolio securities or (ii) render any opinions, valuations or recommendations
of any kind or to perform any such similar services.
SECTION 7. Not Exclusive. Nothing herein shall be construed as prohibiting any
Underwriter or its respective affiliates from acting as such for any other
clients (including other registered investment companies or other investment
advisers).
SECTION 8. No Liability. ▇▇▇▇▇ ▇▇▇▇▇ agrees that no Underwriter shall have
liability to ▇▇▇▇▇ ▇▇▇▇▇ or the Fund for any act or omission to act by such
Underwriter in the course of its performance under this Additional Compensation
Agreement, in the absence of gross negligence or willful misconduct on the part
of such Underwriter. ▇▇▇▇▇ ▇▇▇▇▇ agrees to indemnify and hold harmless each
Underwriter and its respective officers, directors, agents and employees against
any loss or expense arising out of or in connection with such Underwriter's
performance under this Additional Compensation Agreement. This provision shall
survive the termination, expiration or supersession of this Additional
Compensation Agreement.
SECTION 9. Assignment. This Additional Compensation Agreement may not be
assigned by any party without the prior written consent of each other party.
SECTION 10. Amendment; Waiver. No provision of this Additional Compensation
Agreement may be amended or waived except by an instrument in writing signed by
the parties hereto.
SECTION 11. Governing Law. This Additional Compensation Agreement shall be
governed by, and construed in accordance with, the laws of the State of New
York.
SECTION 12. Counterparts. This Additional Compensation Agreement may be executed
in any number of counterparts, each of which shall be an original, and all of
which, when taken together, shall constitute one agreement. Delivery of an
executed signature page of this Additional Compensation Agreement by facsimile
transmission shall be effective as delivery of a manually executed counterpart
hereof.
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If the foregoing is in accordance with your understanding of our
agreement, please sign and return to us a counterpart hereof, whereupon this
instrument, along with all counterparts, will become a binding agreement among
▇▇▇▇▇ ▇▇▇▇▇ and the Qualifying Underwriters in accordance with its terms.
Very truly yours,
[ ]
By:_______________________________________
Name:
Title:
[ ]
By:_______________________________________
Name:
Title:
[ ]
By:_______________________________________
Name:
Title:
CONFIRMED AND ACCEPTED,
as of the date first above written:
▇▇▇▇▇ ▇▇▇▇▇ MANAGEMENT
By:_____________________________________
Name:
Title:
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SCHEDULE A
AGGREGATE
PURCHASE PRICE TO PUBLIC PRO RATA
NAME OF QUALIFYING UNDERWRITER CLASS OF COMMON SHARES SOLD PERCENTAGE
------------------------------ ----- ------------------------ ----------
[ ]
II
[ ] II
[ ] I
Indemnification Agreement
[ ], 2005
[other qualifying underwriters]
In connection with the additional compensation payments made to each of [other
qualifying underwriters] (each a "Bank" and, together, the "Banks") by the
undersigned (the "Company") as set forth in the Additional Compensation
Agreement dated September 30, 2005, between the Company and the Banks (the
"Agreement"), in the event that a Bank becomes involved in any capacity in any
claim, suit, action, proceeding, investigation or inquiry (including, without
limitation, any shareholder or derivative action or arbitration proceeding)
(collectively, a "Proceeding") in connection with or arising out of the
Agreement, the Company agrees to indemnify, defend and hold each Bank harmless
to the fullest extent permitted by law, from and against any losses, claims,
damages, liabilities and expenses in connection with or arising out of the
Agreement (a "Covered Claim"), except to the extent that it shall be determined
by a court of competent jurisdiction in a judgment that has become final in that
it is no longer subject to appeal or other review, that such losses, claims,
damages, liabilities and expenses resulted solely from the gross negligence, bad
faith or willful misconduct of a Bank. In addition, in the event that a Bank
becomes involved in any capacity in any Proceeding which relates to a Covered
Claim, the Company will reimburse the Bank for its legal and other expenses
(including the reasonable cost of any investigation and preparation) as such
expenses are incurred by the Bank in connection therewith. If such
indemnification were not to be available for any reason, the Company agrees to
contribute to the losses, claims, damages, liabilities and expenses involved (i)
in the proportion appropriate to reflect the relative benefits received or
sought to be received by the Company and its stockholders, on the one hand, and
a Bank, on the other hand, in the matters contemplated by the Agreement or (ii)
if (but only if and to the extent) the allocation provided for is for any reason
held unenforceable, in such proportion as is appropriate to reflect not only the
relative benefits referred to in the Agreement but also the relative fault of
the Company and its stockholders, on the one hand, and the party entitled to
contribution, on the other hand, as well as any other relevant equitable
considerations; provided, that in no event shall the Company contribute less
than the amount necessary to assure that the Banks are not liable for losses,
claims, damages, liabilities and expenses in excess of the amount of fees
actually received by a Bank pursuant to the Agreement. Relative fault shall be
determined by reference to, among other things, whether any alleged untrue
statement or omission or any other alleged conduct relates to information
provided by the Company or other conduct by the Company (or its employees or
other agents), on the one hand, or by each Bank, on the other hand. The Company
will not settle any Proceeding in respect of which indemnity
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may be sought hereunder, whether or not a Bank is an actual or potential party
to such Proceeding, without that Bank's prior written consent. For purposes of
this Indemnification Agreement, a Bank shall include each Bank, any of its
affiliates, each other person, if any, controlling the Bank or any of its
affiliates, their respective officers, current and former directors, employees
and agents, and the successors and assigns of all of the foregoing persons. The
foregoing indemnity and contribution agreement shall be in addition to any
rights that any indemnified party may have at common law or otherwise.
If any Proceeding is brought against a Bank in respect of which indemnity may be
sought against the Company pursuant to the foregoing paragraph, the Bank shall
promptly notify the Company in writing of the institution of such Proceeding and
the Company shall assume the defense of such Proceeding, including the
employment of counsel reasonably satisfactory to the Bank and payment of all
fees and expenses; provided, however, that the omission to so notify the Company
shall not relieve the Company from any liability which the Company may have to a
Bank or otherwise, unless and only to the extent that, such omission results in
the forfeiture of substantive rights or defenses by the Company. Each Bank shall
have the right to employ its own counsel in any such case, but the fees and
expenses of such counsel shall be at the expense of the Bank unless the
employment of such counsel shall have been authorized in writing by the Company
in connection with the defense of such Proceeding or the Company shall not have,
within a reasonable period of time in light of the circumstances, employed
counsel to have charge of the defense of such Proceeding or the Bank shall have
reasonably concluded that there may be defenses available to it which are
different from, additional to or in conflict with those available to the Company
(in which case the Company shall not have the right to direct the defense of
such Proceeding on behalf of a Bank), in any of which events such fees and
expenses shall be borne by the Company and paid as incurred (it being
understood, however, that the Company shall not be liable for the expenses of
more than one separate counsel (in addition to any local counsel) in any one
Proceeding or series of related Proceedings in the same jurisdiction). The
Company shall not be liable for any settlement of any Proceeding effected
without its written consent but if settled with the written consent of the
Company, the Company agrees to indemnify and hold harmless a Bank from and
against any loss or liability by reason of such settlement. Notwithstanding the
foregoing sentence, if at any time a Bank shall have requested the Company to
reimburse the Bank for fees and expenses of counsel as contemplated by the
second sentence of this paragraph, then the Company agrees that it shall be
liable for any settlement of any Proceeding effected without its written consent
if (i) such settlement is entered into more than 60 business days after receipt
by the Company of the aforesaid request, (ii) the Company shall not have
reimbursed a Bank in accordance with such request prior to the date of such
settlement and (iii) the Bank shall have given the Company at least 30 days'
prior notice of its intention to settle.
The Company agrees that neither the Banks nor any of their affiliates,
directors, agents, employees or controlling persons shall have any liability to
the Company or any person asserting claims on behalf of or in right of the
Company in connection with or as a result of a Covered Claim, except to the
extent that it shall be determined by a court of competent jurisdiction in a
judgment that has become final in that it is no longer subject to appeal or
other review that any losses, claims, damages, liabilities or expenses incurred
by the Company resulted solely from the gross negligence, bad faith or willful
misconduct of a Bank in performing the Services.
THIS INDEMNIFICATION AGREEMENT AND ANY CLAIM, COUNTERCLAIM OR DISPUTE OF ANY
KIND OR NATURE WHATSOEVER ARISING OUT OF OR IN ANY WAY RELATING TO THIS
AGREEMENT ("CLAIM"), DIRECTLY OR INDIRECTLY, SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. EXCEPT AS SET FORTH BELOW,
NO CLAIM MAY BE COMMENCED, PROSECUTED OR CONTINUED IN ANY COURT OTHER THAN THE
COURTS OF THE STATE OF NEW YORK LOCATED IN THE CITY AND COUNTY OF NEW YORK OR IN
THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, WHICH
COURTS SHALL HAVE EXCLUSIVE
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JURISDICTION OVER THE ADJUDICATION OF SUCH MATTERS, AND THE COMPANY AND A BANK'S
CONSENT TO THE JURISDICTION OF SUCH COURTS AND PERSONAL SERVICE WITH RESPECT
THERETO. THE COMPANY HEREBY CONSENTS TO PERSONAL JURISDICTION, SERVICE AND VENUE
IN ANY COURT IN WHICH ANY CLAIM ARISING OUT OF OR IN ANY WAY RELATING TO THIS
AGREEMENT IS BROUGHT BY AND THIRD PARTY AGAINST UBS SECURITIES OR ANY
INDEMNIFIED PARTY. EACH OF THE BANKS AND THE COMPANY WAIVES ALL RIGHT TO TRIAL
BY JURY IN ANY PROCEEDING OR CLAIM (WHETHER BASED UPON CONTRACT, TORT OR
OTHERWISE) ARISING OUT OF OR IN ANY WAY RELATING TO THIS AGREEMENT. THE COMPANY
AGREES THAT A FINAL JUDGMENT IN ANY PROCEEDING OR CLAIM ARISING OUT OF OR IN ANY
WAY RELATING TO THIS AGREEMENT BROUGHT IN ANY SUCH COURT SHALL BE CONCLUSIVE AND
BINDING UPON THE COMPANY AND MAY BE ENFORCED IN ANY OTHER COURTS TO THE
JURISDICTION OF WHICH THE COMPANY IS OR MAY BE SUBJECT, BY SUIT UPON SUCH
JUDGMENT.
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The foregoing Indemnification Agreement shall remain in full force and
effect notwithstanding any termination of a Bank's engagement. This
Indemnification Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which shall constitute one and the
same agreement.
Very truly yours,
▇▇▇▇▇ ▇▇▇▇▇ MANAGEMENT
By:___________________________________
Name:
Title:
Accepted and agreed to as of
the date first above written:
[ ]
By: ______________________________________
Name:
Title:
[ ]
By: ______________________________________
Name:
Title:
[ ]
By: ______________________________________
Name:
Title:
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