THE CUSHING MLP TOTAL RETURN FUND AMENDED AND RESTATED AGREEMENT AND DECLARATION OF TRUST
EXHIBIT 2(a)(2)
THE ▇▇▇▇▇▇▇ MLP TOTAL RETURN FUND
AMENDED AND RESTATED
This AMENDED AND RESTATED AGREEMENT AND DECLARATION OF TRUST is made as of July 16, 2007, and
amends and restates in its entirety the Declaration of Trust dated as of May 23, 2007, by ▇▇▇▇▇ ▇.
▇▇▇▇▇, as trustee.
W I T N E S S E T H:
WHEREAS, by the filing of the Certificate and the execution of the Original Declaration of
Trust, the Initial Trustee established the Trust on May 23, 2007 as a statutory trust under the
Delaware Act for the purpose of (i) operating as a closed-end management investment company in
accordance with the 1940 Act and (ii) engaging in such other activities as are necessary,
convenient or incidental thereto;
WHEREAS, the Persons executing this Declaration as Trustees desire to amend and restate in its
entirety the Original Declaration of Trust;
NOW, THEREFORE, the Persons executing this Declaration as Trustees hereby agree to amend and
restate in its entirety the Original Declaration of Trust as provided herein and declare that all
money and property hereafter contributed to the Trust shall be held and managed in trust for the
benefit of the Shareholders of beneficial interests issued hereunder from time to time and subject
to the provisions hereof, to wit:
ARTICLE I
NAME AND DEFINITIONS
Section 1. Name. The name of the Trust continued by this Declaration of Trust is “The
▇▇▇▇▇▇▇ MLP Total Return Fund” and the Trustees shall conduct the business of the Trust under that
name or any other name or names as they may from time to time determine and the Trustees may,
without Shareholder approval, change the name of the Trust or any Series or Class thereof. In the
event of any such change, the Trustees shall cause notice to be given to the affected Shareholders
within a reasonable time after the implementation of such change.
Section 2. Definitions. Unless otherwise provided or required by the context:
(a) “Administrator” means the party, other than the Trust, to the contract described in
Article III, Section 3 hereof.
(b) “By-Laws” means the By-Laws of the Trust adopted by the Trustees, as amended from time to
time, which By-Laws are expressly herein incorporated by reference as part of the “governing
instrument” within the meaning of the Delaware Act.
(c) “Certificate” means the certificate of trust of the Trust as filed with the Delaware
Secretary of State on May 23, 2007, as amended and restated from time to time, in accordance with
the Delaware Act.
(d) “Class” means, as applicable, any class of Shares of the Trust or any class of Shares of
any Series established and designated under or in accordance with the provisions of Article V.
(e) “Commission,” “Interested Person” and “Principal Underwriter” have the meanings provided
in the 1940 Act. Except as such term may be otherwise defined by the Trustees in conjunction with
the establishment of any Series of Shares, the term “vote of a majority of the Shares outstanding
and entitled to vote” shall have the same meaning as is assigned to the term “vote of a majority of
the outstanding voting securities” in the 1940 Act.
(f) “Covered Person” means a person so defined in Article IV, Section 2.
(g) “Custodian” means any Person other than the Trust who has custody of any Trust Property as
required by Section 17(f) of the 1940 Act, but does not include a system for the central handling
of securities described in said Section 17(f).
(h) “Declaration” means this Amended and Restated Agreement and Declaration of Trust, as
amended or restated from time to time. Reference in this Declaration of Trust to “Declaration,”
“hereof,” “herein,” and “hereunder” shall be deemed to refer to this Declaration rather than
exclusively to the article or section in which such words appear.
(i) “Delaware Act” means the Delaware Statutory Trust Act, 12 Del. C. §§ 3801
et seq., as amended from time to time, and any successor statute thereto.
(j) “Distributor” means the party or parties, other than the Trust, to the contract described
in Article III, Section 1 hereof.
(k) “His” shall include the feminine and neuter, as well as the masculine, genders.
(l) “Initial Trustee” means ▇▇▇▇▇ ▇. ▇▇▇▇▇, in his capacity as the initial trustee of the
Trust under the Original Declaration of Trust.
(m) “Investment Adviser” means the party, other than the Trust, to the contract described in
Article III, Section 2 hereof.
(n) “Net Asset Value” means the net asset value of the Trust, or, if applicable, each Series
of the Trust, determined as provided in Article VI, Section 3.
(o) “Original Declaration of Trust” means the Declaration of Trust of the Trust dated as of
May 23, 2007, as in effect from time to time up to the effectiveness of this Declaration of Trust;
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(p) “Person” means and includes individuals, corporations, partnerships, trusts, associations,
joint ventures, estates and other entities, whether or not legal entities, and governments and
agencies and political subdivisions, thereof, whether domestic or foreign.
(q) “Securities Act” means the Securities Act of 1933, as amended from time to time, including
the rules and regulations of the Commission thereunder and any order or orders thereunder which may
from time to time be applicable to the Trust.
(r) “Series” means a series of Shares established and designated under or in accordance with
the provisions of Article V, each of which shall be accounted for and maintained as a separate
series or portfolio of the Trust.
(s) “Shareholder” means a record owner of Outstanding Shares;
(t) “Shares” means the equal proportionate transferable units of interest into which the
beneficial interest of the Trust, each Series and/or each Class, as applicable, is divided from
time to time (including whole Shares and fractions of Shares). “Outstanding Shares” means Shares
shown in the books of the Trust or its transfer agent as then issued and outstanding, but does not
include Shares which have been repurchased or redeemed by the Trust and which are held in the
treasury of the Trust.
(u) “Transfer Agent” means any Person other than the Trust who maintains the Shareholder
records of the Trust, such as the list of Shareholders, the number of Shares credited to each
account, and the like.
(v) “Trust” means The ▇▇▇▇▇▇▇ MLP Total Return Fund established under the Original Declaration
of Trust and continued hereby, and reference to the Trust, when applicable to one or more Series,
refers to each such Series.
(w) “Trustee” means each person who has signed this Declaration of Trust and all other Persons
who were or may from time to time be duly elected or appointed to serve as Trustees in accordance
with the provisions hereof, or the provisions of the Original Declaration of Trust, in each case so
long as such Person shall continue in office in accordance with the terms hereof, and reference
herein to a Trustee or the Trustees shall refer to such Person or Persons in his, her or their
capacities as trustee or trustees hereunder. Unless otherwise required by the context or
specifically provided, any reference herein to the Trustees shall refer to the Trustee at any time
that there is only one Trustee of the Trust.
(x) “Trust Property” means any and all property, real or personal, tangible or intangible,
which is from time to time owned or held by or for the account of the Trust or any Series or the
Trustees on behalf of the Trust or any Series, each and every asset of which shall be allocated and
belong to a specific series to the exclusion of all other series.
(y) The “1940 Act” means the Investment Company Act of 1940, as amended from time to time,
including the rules and regulations of the Commission thereunder and any order or orders thereunder
which may from time to time be applicable to the Trust.
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ARTICLE II
THE TRUSTEES
Section 1. Management of the Trust. The business and affairs of the Trust shall be
managed by or under the direction of the Trustees, and they shall have all powers necessary or
desirable to carry out that responsibility. The Trustees may execute all instruments and take all
action they deem necessary or desirable to promote the interests of the Trust. Any determination
made by the Trustees in good faith as to what is in the interests of the Trust shall be conclusive.
In construing the provisions of this Declaration, the presumption shall be in favor of a grant of
power to the Trustees.
Section 2. Powers. The Trustees in all instances shall act as principals, free of the
control of the Shareholders. The Trustees shall have full power and authority to take or refrain
from taking any action and to execute any contracts and instruments that they may consider
necessary or desirable in the management of the Trust. The Trustees shall not in any way be bound
or limited by current or future laws or customs applicable to trust investments, but shall have
full power and authority to make any investments which they, in their sole discretion, deem proper
to accomplish the purposes of the Trust. The Trustees may exercise all of their powers without
recourse to any court or other authority. Subject to any applicable limitation herein or in the
By-Laws or resolutions of the Trust, the Trustees shall have power and authority, without
limitation:
(a) To operate as and carry on the business of an investment company, and exercise all the
powers necessary and appropriate to the conduct of such operations.
(b) To invest in, hold for investment, or reinvest in, cash; securities of any type,
including, but not limited to, common, preferred and preference stocks; warrants; subscription
rights; profit-sharing interests or participations and all other contracts for or evidence of
equity interests; bonds, debentures, bills, time notes and all other evidences of indebtedness;
negotiable or non-negotiable instruments; government securities, including securities of any state,
municipality or other political subdivision thereof, or any governmental or quasi-governmental
agency or instrumentality; and money market instruments including bank certificates of deposit,
finance paper, commercial paper, bankers’ acceptances and all kinds of repurchase agreements, of
any corporation, company, trust, association, firm or other business organization however
established, and of any country, state, municipality or other political subdivision, or any
governmental or quasi-governmental agency or instrumentality; or any other security, property or
instrument in which the Trust or any of its Series shall be authorized to invest.
(c) To acquire (by purchase, subscription or otherwise), to hold, to trade in and deal in, to
acquire any rights or options to purchase or sell, to sell or otherwise dispose of, to lend and to
pledge any such securities, to enter into repurchase agreements, reverse repurchase agreements,
firm commitment agreements, forward foreign currency exchange contracts, interest rate mortgage or
currency swaps and interest rate caps, floors and collars, to purchase and sell options on
securities, securities indices, currency, swaps and other financial assets, futures
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contracts and options on futures contracts of all descriptions and to engage in all types of
hedging, risk-management or income enhancement transactions.
(d) To exercise all rights, powers and privileges of ownership or interest in all securities,
repurchase agreements and other assets included in the Trust Property, including the right to vote
thereon and otherwise act with respect thereto and to do all acts for the preservation, protection,
improvement and enhancement in value of all such securities, repurchase agreements and other
assets.
(e) To acquire (by purchase, lease or otherwise) and to hold, use, maintain, develop and
dispose of (by sale or otherwise) any property, real or personal, including cash or foreign
currency, and any interest therein.
(f) To borrow money or other property in the name of the Trust exclusively for Trust purposes
and in this connection issue notes or other evidence of indebtedness; to secure borrowings by
mortgaging, pledging or otherwise subjecting as security the Trust Property; and to endorse,
guarantee, or undertake the performance of any obligation or engagement of any other Person and to
lend Trust Property.
(g) To aid by further investment any corporation, company, trust, association or firm, any
obligation of or interest in which is included in the Trust Property or in the affairs of which the
Trustees have any direct or indirect interest; to do all acts and things designed to protect,
preserve, improve or enhance the value of such obligation or interest; and to guarantee or become
surety on any or all of the contracts, stocks, bonds, notes, debentures and other obligations of
any such corporation, company, trust, association or firm.
(h) To adopt By-Laws not inconsistent with this Declaration providing for the conduct of the
business of the Trust and to amend and repeal them to the extent such right is not reserved to the
Shareholders.
(i) To elect and remove with or without cause such officers and appoint and terminate such
agents as they deem appropriate.
(j) To employ as custodian of any assets of the Trust, subject to any provisions herein or in
the By-Laws, one or more banks, trust companies or companies that are members of a national
securities exchange, or other entities permitted by the Commission to serve as such.
(k) To retain one or more transfer agents and shareholder servicing agents, or both.
(l) To provide for the distribution of Shares either through a Principal Underwriter as
provided herein or by the Trust itself, or both, or pursuant to a distribution plan of any kind.
(m) To set record dates in the manner provided for herein or in the By-Laws.
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(n) To delegate such authority as they consider desirable to any officers of the Trust and to
any agent, independent contractor, manager, investment adviser, custodian or underwriter.
(o) To hold any security or other property (i) in a form not indicating any trust, whether in
bearer, book entry, unregistered or other negotiable form, or (ii) either in the Trust’s or
Trustees’ own name or in the name of a custodian or a nominee or nominees, subject to safeguards
according to the usual practice of statutory trusts or investment companies.
(p) To establish separate and distinct Series with separately defined investment objectives
and policies and distinct investment purposes, and with separate Shares representing beneficial
interests in such Series, and to establish separate Classes, all in accordance with the provisions
of Article V.
(q) To the full extent permitted by Section 3804 of the Delaware Act, to allocate assets,
liabilities and expenses of the Trust to a particular Series and assets, liabilities and expenses
to a particular Class or to apportion the same between or among two or more Series or Classes,
provided that any liabilities or expenses incurred by a particular Series or Class shall be payable
solely out of the assets belonging to that Series or Class as provided for in Article V, Section 4.
(r) To consent to or participate in any plan for the reorganization, consolidation or merger
of any corporation or concern whose securities are held by the Trust; to consent to any contract,
lease, mortgage, purchase, or sale of property by such corporation or concern; and to pay calls or
subscriptions with respect to any security held in the Trust.
(s) To compromise, arbitrate, or otherwise adjust claims in favor of or against the Trust or
any matter in controversy including, but not limited to, claims for taxes.
(t) To make distributions of income, capital gains, returns of capital (if any) and redemption
proceeds to Shareholders in the manner hereinafter provided for.
(u) To establish committees for such purposes, with such membership, and with such
responsibilities as the Trustees may consider proper, including a committee consisting of fewer
than all of the Trustees then in office, which may act for and bind the Trustees and the Trust with
respect to the institution, prosecution, dismissal, settlement, review or investigation of any
action, suit or proceeding, pending or threatened to be brought before any court, administrative
agency or other adjudicatory body.
(v) To issue, sell, repurchase, redeem, cancel, retire, acquire, hold, resell, reissue,
dispose of and otherwise deal in Shares; to establish terms and conditions regarding the issuance,
sale, repurchase, redemption, cancellation, retirement, acquisition, holding, resale, reissuance,
disposition of or dealing in Shares; and, subject to Articles V and VI, to apply to any such
repurchase, redemption, retirement, cancellation or acquisition of Shares any funds or property of
the Trust or, if applicable, of the particular Series with respect to which such Shares are issued.
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(w) To invest part or all of the Trust Property (or part or all of the assets of any Series),
or to dispose of part or all of the Trust Property (or part or all of the assets of any Series) and
invest the proceeds of such disposition, in securities issued by one or more other investment
companies registered under the 1940 Act (including investment by means of transfer of part or all
of the Trust Property in exchange for an interest or interest in such one or more investment
companies) all without any requirement of approval by Shareholders. Any such other investment
company may (but need not) be a trust (formed under the laws of any state) which is classified as a
partnership for federal income tax purposes.
(x) To sell or exchange any or all of the assets of the Trust, subject to Article IX, Sections
4, 6 and 7.
(y) To enter into joint ventures, partnerships and any other combinations and associations.
(z) To join with other security holders in acting through a committee, depositary, voting
trustee or otherwise, and in that connection to deposit any security with, or transfer any security
to, any such committee, depositary or trustee, and to delegate to them such power and authority
with relation to any security (whether or not so deposited or transferred) as the Trustees shall
deem proper, and to agree to pay, and to pay, such portion of the expenses and compensation of such
Committee, depositary or trustee as the Trustees shall deem proper.
(aa) To purchase and pay for entirely out of Trust Property such insurance as the Trustees may
deem necessary or appropriate for the conduct of the business, including, without limitation,
insurance policies insuring the assets of the Trust or payment of distributions and principal on
its portfolio investments, and, subject to applicable law and any restrictions set out in the
By-Laws, insurance policies insuring the Shareholders, Trustees, officers, employees, agents,
investment advisers, Principal Underwriters, or independent contractors of the Trust, individually,
against all claims and liabilities of every nature arising by reason of holding Shares, holding,
being or having held any such office or position, or by reason of any action alleged to have been
taken or omitted by any such Person as Trustee, officer, employee, agent, investment adviser,
Principal Underwriter, or independent contractor, including any action taken or omitted that may be
determined to constitute negligence, whether or not the Trust would have the power to indemnify
such Person against liability.
(bb) To adopt, establish and carry out pension, profit-sharing, Share bonus, Share purchase,
savings, thrift and other retirement, incentive and benefit plans and trusts, including the
purchasing of life insurance and annuity contracts as a means of providing such retirement and
other benefits, for any or all of the Trustees, officers, employees and agents of the Trust.
(cc) To vote or give assent, or exercise any rights of ownership, with respect to stock or
other securities or property; and to execute and deliver proxies or powers of attorneys to such
Person or Persons as the Trustees shall deem proper, granting to such Person or Persons such power
and discretion with relation to securities and property as the Trustees shall deem proper.
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(dd) To enter into contracts of any kind and description.
(ee) To interpret the investment policies, practices or limitations of any Series or Class.
(ff) To guarantee indebtedness and contractual obligations of others.
(gg) To carry on any other business in connection with or incidental to any of the foregoing
powers, to do everything necessary or desirable to accomplish any purpose or to further any of the
foregoing powers, and to take every other action incidental to the foregoing business or purposes,
objects or powers.
The clauses above shall be construed as objects and powers, and the enumeration of specific
powers shall not limit in any way the general powers of the Trustees. Any action by one or more of
the Trustees in their capacity as such hereunder shall be deemed an action on behalf of the Trust
or any applicable Series, and not an action in an individual capacity. No one dealing with the
Trustees shall be under any obligation to make any inquiry concerning the authority of the
Trustees, or to see to the application of any payments made or property transferred to the Trustees
or upon their order. In construing this Declaration, the presumption shall be in favor of a grant
of power to the Trustees.
Section 3. Certain Transactions. Except as prohibited by applicable law, the Trustees
may, on behalf of the Trust, buy any securities from or sell any securities to, or lend any assets
of the Trust to, any Trustee or officer of the Trust or any firm of which any such Trustee or
officer is a member acting as principal, or have any such dealings with any investment adviser,
administrator, distributor or transfer agent for the Trust or with any Interested Person of such
person. The Trust may employ any such person or entity in which such person is an Interested
Person, as broker, legal counsel, registrar, investment adviser, administrator, distributor,
transfer agent, dividend disbursing agent, custodian or in any other capacity upon customary terms.
Section 4. Current Trustee(s); Election and Number of Trustees. The Trustees as of
the date hereof shall be the persons initially signing this Declaration. The number of Trustees
shall be equal to the number of Persons initially signing this Declaration and, hereafter, may be
fixed from time to time by a majority of the Trustees then in office; provided, that there shall be
at least one (1) Trustee.
Section 5. Term of Office of Trustees; Classes.
(a) Subject to the voting rights established with respect to a particular Series or Class,
each Trustee shall hold office for life or until his successor is elected and duly qualified or the
Trust terminates. Notwithstanding the foregoing but subject to the voting rights established with
respect to a particular Series or Class, (1) any Trustee may resign by delivering to the other
Trustees or to any Trust officer a written resignation effective upon such delivery or a later date
specified therein; (2) any Trustee may be removed with cause at any time by a written instrument
signed by at least three-quarters of the then Trustees, specifying the effective date of removal;
(3) any Trustee who requests to be retired, or who is declared bankrupt or has become physically or
mentally incapacitated or is otherwise unable to serve, may be retired by a written instrument
signed by a majority of the other Trustees, specifying the effective date of
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retirement; and (4) any Trustee may be removed, with or without cause, by a vote of at least a
majority of the then Trustees if such removal is approved by the holders of at least three-quarters
of the Outstanding Shares entitled to vote with respect to the election of such Trustee and present
in person or by proxy at a meeting of the Shareholders called for such purpose.
(b) The Board of Trustees shall be divided into three classes, designated Class I, Class II
and Class III. Each class shall consist, as nearly as may be possible, of one-third of the total
number of trustees constituting the entire Board of Trustees. Within the limits above specified,
the number of the Trustees in each class shall be determined by resolution of the Board of
Trustees. The term of office of the 1st class shall expire on the date of the 1st annual meeting
of Shareholders or special meeting in lieu thereof following the effective date of the Registration
Statement relating to the Shares under the Securities Act. The term of the 2nd class shall expire
on the date of the 2nd annual meeting of Shareholders or special meeting in lieu thereof following
the effective date of the Registration Statement relating to the Shares under the Securities Act.
The term of the 3rd class shall expire on the date of the 3rd annual meeting of Shareholders or
special meeting in lieu thereof following the effective date of the Registration Statement relating
to the Shares under the Securities Act. Upon expiration of the term of office of each class as set
out above, the number of Trustees in such class, as determined by the Board of Trustees, shall be
elected for a term expiring on the date of the 3rd annual meeting of Shareholders or special
meeting in lieu thereof following such expiration to succeed the Trustees whose terms of office
expire. The Trustees shall be elected at an annual meeting of the Shareholders or special meeting
in lieu thereof called for that purpose.
Section 6. Vacancies; Appointment of Trustees. Whenever a vacancy shall exist in the
Board of Trustees, regardless of the reason for such vacancy, the remaining Trustees shall appoint
any person as they determine in their sole discretion to fill that vacancy, consistent with the
limitations under the 1940 Act, provided, that if the Shareholders of any Class or Series of Shares
are entitled separately to elect one or more Trustees, a majority of the remaining Trustees or the
sole remaining Trustee elected by that Class or Series may fill any vacancy among the number of
Trustees elected by that Class or Series. Such appointment shall be made by a written instrument
signed by a majority of the Trustees or by a resolution of the Trustees, duly adopted and recorded
in the records of the Trust, specifying the effective date of the appointment. The Trustees may
appoint a new Trustee as provided above in anticipation of a vacancy expected to occur because of
the retirement, resignation or removal of a Trustee, or an increase in number of Trustees, provided
that such appointment shall become effective only at or after the expected vacancy occurs. As soon
as any such Trustee has accepted his appointment in writing, the trust estate shall vest in the new
Trustee, together with the continuing Trustees, without any further act or conveyance, and he shall
be deemed a Trustee hereunder. The Trustees’ power of appointment is subject to Section 16(a) of
the 1940 Act. Whenever a vacancy in the number of Trustees shall occur, until such vacancy is
filled as provided in this Article II, the Trustees in office, regardless of their number, shall
have all the powers granted to the Trustees and shall discharge all the duties imposed upon the
Trustees by the Declaration. The death, declination to serve, resignation, retirement, removal or
incapacity of one or more Trustees, or all of them, shall not operate to annul the Trust or to
revoke any existing agency created pursuant to the terms of this Declaration of Trust.
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Section 7. Chairman. The Trustees may appoint one of their number to be Chairman of
the Board of Trustees. The Chairman shall preside at all meetings of the Trustees, shall be
responsible for the execution of policies established by the Trustees and the administration of the
Trust, and may be the chief executive, financial and/or accounting officer of the Trust. If the
Trustees do not appoint a Chairman, the President shall perform the duties and have the
responsibilities hereunder.
Section 8. Action by the Trustees.
(a) Except as expressly provided in this Agreement, the Trustees shall act by majority vote at
a meeting duly called at which a quorum is present, including a meeting held by conference
telephone, teleconference or other electronic media or communication equipment by means of which
all persons participating in the meeting can communicate with each other; or by written consent of
a majority of Trustees (or such greater number as may be required by applicable law) without a
meeting. A majority of the Trustees shall constitute a quorum at any meeting. Meetings of the
Trustees may be called orally or in writing by the President or by any one of the Trustees or as
set out in the By-Laws. Notice of the time, date and place of all Trustees’ meetings shall be
given to each Trustee as set out in the By-Laws; provided, however, that no notice is required if
the Trustees provide for regular or stated meetings. Notice need not be given to any Trustee who
attends the meeting without objecting to the lack of notice or who signs a waiver of notice either
before or after the meeting. Except as expressly provided in this Agreement, the Trustees by
majority vote may delegate to any Trustee or Trustees or committee authority to approve particular
matters or take particular actions on behalf of the Trust. Any written consent or waiver may be
provided and delivered to the Trust by facsimile or other similar electronic mechanism.
(b) A Trustee who with respect to the Trust is not an Interested Person shall be deemed to be
independent and disinterested when making any determinations or taking any action as a Trustee,
whether pursuant to the 1940 Act, the Delaware Act or otherwise.
Section 9. Ownership of Trust Property. The Trust Property of the Trust and, if
applicable, of each Series shall be held separate and apart from any assets now or hereafter held
in any capacity other than as Trustee hereunder by the Trustees or any successor Trustees. Legal
title in and beneficial ownership of all of the assets of the Trust shall at all times be
considered as vested in the Trust, except that the Trustees may cause legal title in and beneficial
ownership of any Trust Property to be held by, or in the name of one or more of the Trustees acting
for and on behalf of the Trust, or in the name of any person as nominee acting for and on behalf of
the Trust. No Shareholder shall be deemed to have a severable ownership in any individual asset of
the Trust or of any Series or any right of partition or possession thereof, but each Shareholder
shall have, as provided in Article V, a proportionate undivided beneficial interest in the Trust or
Series or Class thereof represented by Shares. The Shares shall be personal property giving only
the rights specifically set out in this Trust Instrument. The Trust, or at the determination of
the Trustees one or more of the Trustees or a nominee acting for and on behalf of the Trust, shall
be deemed to hold legal title and beneficial ownership of any income earned on securities of the
Trust issued by any business entities formed, organized, or existing under the laws of any
jurisdiction, including the laws of any foreign country. Upon the resignation or removal of a
Trustee, or his otherwise ceasing to be a Trustee, he shall execute and deliver such documents as
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the remaining Trustees shall require for the purpose of conveying to the Trust or the
remaining Trustees any Trust Property held in the name of the resigning or removed Trustee. Upon
the incapacity or death of any Trustee, his legal representative shall execute and deliver on his
behalf such documents as the remaining Trustees shall require as provided in the preceding
sentence.
Section 10. Effect of Trustees Not Serving. The death, resignation, retirement,
removal, incapacity or inability or refusal to serve of the Trustees, or any one of them, shall not
operate to annul the Trust or to revoke any existing agency created pursuant to the terms of this
Declaration.
Section 11. Trustees, Etc. as Shareholders. Subject to any restrictions in the
By-Laws, any Trustee, officer, agent or independent contractor of the Trust may acquire, own and
dispose of Shares to the same extent as any other Shareholder; the Trustees may issue and sell
Shares to and buy Shares from any such person or any firm or company in which such Person is
interested, subject only to any general limitations herein.
Section 12. Series Trustees. In connection with the establishment of one or more
Series or Classes, the Trustees establishing such Series or Class may appoint, to the extent
permitted by the Delaware Act, separate Trustees with respect to such Series or Classes (the
“Series Trustees”). Series Trustees may, but are not required to, serve as Trustees of the Trust
or any other Series or Class of the Trust. The Series Trustees shall have, to the exclusion of any
other Trustee of the Trust, all the powers and authorities of Trustees hereunder with respect to
such Series or Class, but shall have no power or authority with respect to any other Series or
Class. Any provision of this Declaration relating to election of Trustees by Shareholders only
shall entitle the Shareholders of a Series or Class for which Series Trustees have been appointed
to vote with respect to the election of such Series Trustees and the Shareholders of any other
Series or Class shall not be entitled to participate in such vote. In the event that Series
Trustees are appointed, the Trustees initially appointing such Series Trustees shall, without the
approval of any Outstanding Shares, amend either the Declaration or the By-Laws to provide for the
respective responsibilities of the Trustees and the Series Trustees in circumstances where an
action of the Trustees or Series Trustees affects all Series of the Trust or two or more Series
represented by different Trustees.
ARTICLE III
CONTRACTS WITH SERVICE PROVIDERS
Section 1. Underwriting Contract. The Trustees may in their discretion from time to
time enter into an exclusive or non-exclusive underwriting or distribution contract or contracts
providing for the sale of the Shares whereby the Trustees may either agree to sell the Shares to
the other party to the contract or appoint such other party as their sales agent for the Shares,
and in either case on such terms and conditions, if any, as may be prescribed in the By-Laws, and
such further terms and conditions as the Trustees may in their discretion determine not
inconsistent with the provisions of this Article III or of the By-Laws; and such contract may also
provide for the repurchase of the Shares by such other party as agent of the Trustees.
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Section 2. Advisory or Management Contract. The Trustees may in their discretion from
time to time enter into one or more investment advisory or management contracts or, if the Trustees
establish multiple Series, separate investment advisory or management contracts with respect to one
or more Series whereby the other party or parties to any such contracts shall undertake to furnish
the Trust or such Series management, investment advisory, administration, accounting, legal,
statistical and research facilities and services, promotional or marketing activities, and such
other facilities and services, if any, as the Trustees shall from time to time consider desirable
and all upon such terms and conditions as the Trustees may in their discretion determine.
Notwithstanding any provisions of the Declaration, the Trustees may authorize the Investment
Adviser(s) or persons to whom the Investment Adviser(s) delegates certain or all of its duties, or
any of them, under any such contracts (subject to such general or specific instructions as the
Trustees may from time to time adopt) to effect purchases, sales, loans or exchanges of portfolio
securities and other investments of the Trust on behalf of the Trustees or may authorize any
officer, employee or Trustee to effect such purchases, sales, loans or exchanges pursuant to
recommendations of such Investment Adviser(s), or any of them (and all without further action by
the Trustees). Any such purchases, sales, loans and exchanges shall be deemed to have been
authorized by all of the Trustees.
Section 3. Administration Agreement. The Trustees may in their discretion from time
to time enter into an administration agreement or, if the Trustees establish one or more Series or
Classes, separate administration agreements with respect to each Series or Class, whereby the other
party to such agreement shall undertake to manage the business affairs of the Trust or of a Series
or Class thereof of the Trust and furnish the Trust or a Series or a Class thereof with office
facilities, and shall be responsible for the ordinary clerical, bookkeeping and recordkeeping
services at such office facilities, and other facilities and services, if any, and all upon such
terms and conditions as the Trustees may in their discretion determine.
Section 4. Service Agreement. The Trustees may in their discretion from time to time
enter into service agreements with respect to the Trust or one or more Series or Classes of Shares
whereby the other parties to such Service Agreements will provide administration and/or support
services pursuant to administration plans and service plans, and all upon such terms and conditions
as the Trustees in their discretion may determine.
Section 5. Transfer Agent. The Trustees may in their discretion from time to time
enter into a transfer agency and shareholder service contract whereby the other party to such
contract shall undertake to furnish transfer agency and shareholder services to the Trust. The
contract shall have such terms and conditions as the Trustees may in their discretion determine not
inconsistent with the Declaration. Such services may be provided by one or more Persons.
Section 6. Custodian. The Trustees may appoint or otherwise engage one or more banks
or trust companies or any other entity satisfying the requirements of the 1940 Act, to serve as
Custodian with authority as its agent, but subject to such restrictions, limitations and other
requirements, if any, as may be contained in the By-Laws of the Trust. The Trustees may also
authorize the Custodian to employ one or more sub-custodians, including such foreign banks and
securities depositories as meet the requirements of applicable provisions of the 1940 Act, and upon
such terms and conditions as may be agreed upon between the Custodian and such sub-
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custodian, to hold securities and other assets of the Trust and to perform the acts and
services of the Custodian, subject to applicable provisions of law and resolutions adopted by the
Trustees.
Section 7. Affiliations of Trustees or Officers, Etc. The fact that: (i) any of the
Shareholders, Trustees or officers of the Trust or any Series thereof is a shareholder, director,
officer, partner, trustee, employee, manager, adviser or distributor of or for any partnership,
corporation, trust, association or other organization or of or for any parent or affiliate of any
organization, with which a contract of the character described in this Article III or for services
as Custodian, Transfer Agent or disbursing agent or for related services may have been or may
hereafter be made, or that any such organization, or any parent or affiliate thereof, is a
Shareholder of or has an interest in the Trust, or that (ii) any partnership, corporation, trust,
association or other organization with which a contract of the character described in Sections 1,
2, 3 or 4 of this Article III or for services as Custodian, Transfer Agent or disbursing agent or
for related services may have been or may hereafter be made also has any one or more of such
contracts with one or more other partnerships, corporations, trusts, associations or other
organizations, or has other business or interests, shall not affect the validity of any such
contract or disqualify any Shareholder, Trustee or officer of the Trust from voting upon or
executing the same or create any liability or accountability to the Trust or its Shareholders.
ARTICLE IV
COMPENSATION, LIMITATION OF LIABILITY AND INDEMNIFICATION
Section 1. Compensation. The Trustees as such shall be entitled to reasonable
compensation from the Trust, and they may fix the amount of such compensation. Nothing herein
shall in any way prevent the employment of any Trustee for advisory, management, legal, accounting,
investment banking or other services and payment for the same by the Trust.
Section 2. Limitation of Liability. All persons contracting with or having any claim
against the Trust or a particular Series shall look only to the assets of the Trust or, as
applicable, all Series or such particular Series for payment under such contract or claim; and
neither the Trustees nor, when acting in such capacity, any of the Trust’s officers, employees or
agents, whether past, present or future, shall be personally liable therefor. Every written
instrument or obligation on behalf of the Trust or any Series shall contain a statement to the
foregoing effect, but the absence of such statement shall not operate to make any Trustee or
officer of the Trust liable thereunder. Provided they have exercised reasonable care and have
acted under the reasonable belief that their actions are in the best interest of the Trust, the
Trustees and officers of the Trust shall not be responsible or liable for any act or omission or
for neglect or wrongdoing of them or any officer, agent, employee, investment adviser or
independent contractor of the Trust, but nothing contained in this Declaration or in the Delaware
Act shall protect any Trustee or officer of the Trust against liability to the Trust or to
Shareholders to which he would otherwise be subject by reason of willful misfeasance, bad faith,
gross negligence or reckless disregard of the duties involved in the conduct of his office.
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Section 3. Indemnification.
(a) Subject to the exceptions and limitations contained in subsection (b) below:
(i) every person who is, or has been, a Trustee or an officer, employee or
agent of the Trust (including any individual who serves at its request as director,
officer, partner, employee, trustee, agent or the like of another organization in
which it has any interest as a shareholder, creditor or otherwise) (“Covered
Person”) shall be indemnified by the Trust or the appropriate Series to the fullest
extent permitted by law against liability and against all expenses reasonably
incurred or paid by him in connection with any claim, action, suit or proceeding in
which he becomes involved as a party or otherwise by virtue of his being or having
been a Covered Person and against amounts paid or incurred by him in the settlement
thereof; and
(ii) as used herein, the words “claim,” “action,” “suit,” or “proceeding” shall
apply to all claims, actions, suits or proceedings (civil, criminal, administrative,
investigative, arbitration or other, including appeals), actual or threatened, and
the words “liability” and “expenses” shall include, without limitation, attorneys’
fees, costs, judgments, amounts paid in settlement, fines, penalties and other
liabilities.
(b) No indemnification shall be provided hereunder to a Covered Person:
(i) who shall have been adjudicated by a court or body before which the
proceeding was brought (A) to be liable to the Trust or its Shareholders by reason
of willful misfeasance, bad faith, gross negligence or reckless disregard of the
duties involved in the conduct of his office, or (B) not to have acted in good faith
and in a manner the person reasonably believed to be in or not opposed to the best
interests of the Trust; or
(ii) in the event of a settlement, unless there has been a determination that
such Covered Person did not engage in willful misfeasance, bad faith, gross
negligence or reckless disregard of the duties involved in the conduct of his
office; (A) by the court or other body approving the settlement; (B) by at least a
majority of those Trustees who are neither Interested Persons of the Trust nor are
parties to the matter based upon a review of readily available facts (as opposed to
a full trial-type inquiry); (C) by written opinion of independent legal counsel
based upon a review of readily available facts (as opposed to a full trial-type
inquiry) or (D) by a vote of a majority of the Outstanding Shares entitled to vote
(excluding any Outstanding Shares owned of record or beneficially by such
individual).
(c) The rights of indemnification herein provided may be insured against by policies
maintained by the Trust, shall be severable, shall not be exclusive of or affect any other
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rights to which any Covered Person may now or hereafter be entitled, and shall inure to the
benefit of the heirs, executors and administrators of a Covered Person.
(d) To the maximum extent permitted by applicable law, expenses in connection with the
preparation and presentation of a defense to any claim, action, suit or proceeding of the character
described in subsection (a) of this Section may be paid by the Trust or applicable Series from time
to time prior to final disposition thereof upon receipt of an undertaking by or on behalf of such
Covered Person that such amount will be paid over by him to the Trust or applicable Series if it is
ultimately determined that he is not entitled to indemnification under this Section; provided,
however, that either (i) such Covered Person shall have provided appropriate security for such
undertaking, (ii) the Trust is insured against losses arising out of any such advance payments or
(iii) either a majority of a quorum of the Trustees who are neither Interested Persons of the Trust
nor parties to the matter, or independent legal counsel in a written opinion, shall have
determined, based upon a review of readily available facts (as opposed to a full trial-type
inquiry) that there is reason to believe that such Covered Person will not be disqualified from
indemnification under this Section. Independent counsel retained for the purpose of rendering an
opinion regarding advancement of expenses and/or a majority of a quorum of the Trustees who are
neither Interested Persons of the Trust nor parties to the matter, may proceed under a rebuttable
presumption that the Covered Person has not engaged in willful misfeasance, bad faith, gross
negligence or reckless disregard of the Covered Person’s duties to the Trust and were based on the
Covered Person’s determination that those actions were in the best interests of the Trust and its
Shareholders; provided that the Covered Person is not an Interested Person (or is an Interested
Person solely by reason of being an officer of the Trust).
(e) Any repeal or modification of this Article IV by the Shareholders, or adoption or
modification of any other provision of the Declaration or By-Laws inconsistent with this Article,
shall be prospective only, to the extent that such repeal, or modification would, if applied
retrospectively, adversely affect any limitation on the liability of any Covered Person or
indemnification available to any Covered Person with respect to any act or omission which occurred
prior to such repeal, modification or adoption. Any such repeal or modification by the
Shareholders shall require a vote of at least two-thirds of the Outstanding Shares entitled to vote
and present in person or by proxy at any meeting of the Shareholders.
Section 4. Indemnification of Shareholders.
(a) If any Shareholder or former Shareholder of the Trust (as opposed to a Shareholder or
former Shareholder of any Series) shall be held personally liable solely by reason of his being or
having been a Shareholder and not because of his acts or omissions or for some other reason, the
Shareholder or former Shareholder (or his heirs, executors, administrators or other legal
representatives or in the case of any entity, its general successor) shall be entitled out of the
assets belonging to the Trust to be held harmless from and indemnified against all loss and expense
arising from such liability. The Trust shall, upon request by such Shareholder, assume the defense
of any claim made against such Shareholder for any act or obligation of the Trust and satisfy any
judgment thereon from the assets of the Series.
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(b) If any Shareholder or former Shareholder of any Series shall be held personally liable
solely by reason of his being or having been a Shareholder and not because of his acts or omissions
or for some other reason, the Shareholder or former Shareholder (or his heirs, executors,
administrators or other legal representatives or in the case of any entity, its general successor)
shall be entitled out of the assets belonging to the applicable Series to be held harmless from and
indemnified against all loss and expense arising from such liability. The Trust, on behalf of the
affected Series, shall, upon request by such Shareholder, assume the defense of any claim made
against such Shareholder for any act or obligation of the Series and satisfy any judgment thereon
from the assets of the Series.
Section 5. No Bond Required of Trustees. No Trustee shall be obligated to give any
bond or other security for the performance of any of his duties hereunder.
Section 6. No Duty of Investigation; Notice in Trust Instruments, Etc. No purchaser,
lender, transfer agent or other Person dealing with the Trustees or any officer, employee or agent
of the Trust or a Series thereof shall be bound to make any inquiry concerning the validity of any
transaction purporting to be made by the Trustees or by said officer, employee or agent or be
liable for the application of money or property paid, loaned, or delivered to or on the order of
the Trustees or of said officer, employee or agent. Every obligation, contract, instrument,
certificate, Share, other security of the Trust or a Series thereof or undertaking, and every other
act or thing whatsoever executed in connection with the Trust shall be conclusively presumed to
have been executed or done by the executors thereof only in their capacity as Trustees under this
Declaration or in their capacity as officers, employees or agents of the Trust or a Series thereof.
Every written obligation, contract, instrument, certificate, Share, other security of the Trust or
a Series thereof or undertaking made or issued by the Trustees may recite that the same is executed
or made by them not individually, but as Trustees under the Declaration, and that the obligations
of the Trust or a Series thereof under any such instrument are not binding upon any of the Trustees
or Shareholders individually, but bind only the Trust Property or the Trust Property of the
applicable Series, and may contain any further recital which they may deem appropriate, but the
omission of such recital shall not operate to bind the Trustees individually. The Trustees may
maintain insurance for the protection of the Trust Property or the Trust Property of the applicable
Series, its Shareholders, Trustees, officers, employees and agents in such amount as the Trustees
shall deem adequate to cover possible tort liability, and such other insurance as the Trustees in
their sole judgment shall deem advisable.
Section 7. Reliance on Experts, Etc. Each Trustee, officer or employee of the Trust
or a Series thereof shall, in the performance of his duties, powers and discretions hereunder be
fully and completely justified and protected with regard to any act or any failure to act resulting
from reliance in good faith upon the books of account or other records of the Trust or a Series
thereof, upon an opinion of counsel, or upon reports made to the Trust or a Series thereof by any
of its officers or employees or by the Investment Adviser, the Administrator, the Distributor, the
Principal Underwriter, Transfer Agent, selected dealers, accountants, appraisers or other experts
or consultants selected with reasonable care by the Trustees, officers or employees of the Trust,
regardless of whether such counsel or expert may also be a Trustee.
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ARTICLE V
SERIES; CLASSES; SHARES; OTHER SECURITIES
Section 1. Establishment of Series or Class. One or more Series may be established by
the Trustees. Each Series or Class shall be established and is effective upon the adoption of a
resolution of a majority of the Trustees or any alternative date specified in such resolution.
Such resolution may establish such Series or Classes directly in such resolution or by reference
to, or approval of, another document that sets out such Series or Classes, including any
registration statement of the Trust, or as otherwise provided in such resolution. The Trustees may
designate the relative rights and preferences of the Shares of each Series. Any Shares of any
Series and Classes that may from time to time be established and designated by the Trustees shall
be established and designated, and the variations in the relative rights and preferences as between
the different Series shall be fixed and determined, by the Trustees; provided, that all Shares
shall be identical except for such variations as shall be fixed and determined between different
Series or Classes by the Trustees in establishing and designating such Class or Series.
All references to Shares in this Declaration shall be deemed to be Shares of the Trust or any
or all Series or Classes as the context may require. The Trust shall maintain separate and
distinct records for each Series and hold and account for the assets thereof separately from the
other assets of the Trust or of any other Series. A Series may issue any number of Shares or any
Class thereof and need not issue Shares. Each holder of Shares of a Series or a Class thereof
shall be entitled to receive his pro rata share of all distributions made with respect to such
Series or Class. Upon redemption of a Shareholder’s Shares of a Series, such Shareholder shall be
paid solely out of the funds and property of such Series. The Trustees may adopt and change the
name of any Series or Class without Shareholder approval.
Section 2. Shares. The beneficial interest in the Trust shall be divided into
transferable Shares of the Trust or of one or more separate and distinct Series or Classes
established by the Trustees. The Trustees may divide the Shares of the Trust or any Series into
Classes. The number of Shares of the Trust and of each Series and Class is unlimited and each
Share shall have no par value per Share or such other amount of par value as the Trustees may
establish. All Shares issued hereunder shall be fully paid and nonassessable. Shareholders shall
have no preemptive or other right to subscribe to any additional Shares or other securities issued
by the Trust. The Trustees shall have full power and authority, in their sole discretion and
without obtaining Shareholder approval, to issue original or additional Shares at such times and on
such terms and conditions as they deem appropriate; to issue fractional Shares and Shares held in
the treasury; to establish and to change in any manner Shares of the Trust or of any Series or
Classes with such preferences, rights upon liquidation, redemption rights, terms of conversion,
voting powers, and other rights and privileges as the Trustees may determine (but the Trustees may
not change Outstanding Shares in a manner materially adverse to the Shareholders of such Shares);
to divide or combine the Shares of the Trust or of any Series or Classes into a greater or lesser
number; to classify or reclassify any unissued Shares of the Trust or of any Series or Classes into
one or more Series or Classes of Shares; to abolish any one or more Series or Classes of Shares; to
issue Shares to acquire other assets (including assets subject to, and in connection with, the
assumption of liabilities) and businesses; and to take such other action with respect to the Shares
as the Trustees may deem desirable. Shares held in the treasury shall not confer any voting
17
rights on the Trustees and shall not be entitled to any dividends or other distributions
declared with respect to the Shares. Unless otherwise designated by the Trustees in the By-Laws or
resolutions establishing a Series or Class, the purchase price, the method of determining the net
asset value, and the relative liquidation, voting, dividend and other rights and preferences of
holders of Shares of the Trust or any Series or Class shall be as set out in the Trust’s
Registration Statement on Form N-2 under the Securities Act of 1933 and/or the 1940 Act relating to
the issuance of such Shares. Except as otherwise provided with respect to a specific Series or
Class, each Share of the Trust or any Series shall represent an equal beneficial interest in the
net assets of the Trust or such Series.
Section 3. Investment in the Trust. The Trustees shall accept investments in the
Trust or any Series or Class from such persons and on such terms as they may from time to time
authorize. At the Trustees’ discretion, such investments, subject to applicable law, may be in the
form of cash or securities in which the Trust or that Series, as applicable, is authorized to
invest, valued as provided in Article VI, Section 3. Investments in the Trust or any Series shall
be credited to each Shareholder’s account in the form of full Shares at the Net Asset Value per
Share next determined after the investment is received or accepted as may be determined by the
Trustees; provided, however, that the Trustees may, in their sole discretion, (a) impose a sales
charge upon investments in the Trust or any Series or Class, (b) issue fractional Shares, (c)
determine the Net Asset Value per Share of the initial capital contribution or (d) authorize the
issuance of Shares at a price other than Net Asset Value to the extent permitted by the 1940 Act or
any rule, order or interpretation of the Commission thereunder. The Trustees shall have the right
to refuse to accept investments in the Trust or any Series at any time without any cause or reason
therefor whatsoever.
Section 4. Assets and Liabilities of Series. All consideration received by the Trust
for the issue or sale of Shares of a particular Series, together with all assets in which such
consideration is invested or reinvested, all income, earnings, profits, and proceeds thereof
(including any proceeds derived from the sale, exchange or liquidation of such assets, and any
funds or payments derived from any reinvestment of such proceeds in whatever form the same may be),
shall be held and accounted for separately from the assets of every other Series and are referred
to as “assets belonging to” that Series. The assets belonging to a Series shall belong only to
that Series for all purposes, and to no other Series, subject only to the rights of creditors of
that Series. Any assets, income, earnings, profits, and proceeds thereof, funds, or payments which
are not readily identifiable as belonging to any particular Series shall be allocated by the
Trustees between and among one or more Series as the Trustees deem fair and equitable. Each such
allocation shall be conclusive and binding upon the Shareholders of all Series for all purposes,
and such assets, earnings, income, profits or funds, or payments and proceeds thereof shall be
referred to as assets belonging to that Series. Separate and distinct records shall be maintained
for each Series and the assets held with respect to each Series shall be held and accounted for
separately from the assets held with respect to all other Series and from any assets, income,
earnings, profits, and proceeds thereof, funds, or payments which are not readily identifiable as
belonging to any particular Series that are not allocated to such Series by the Trustees in
accordance with this Section 4. The assets belonging to a Series shall be so recorded upon the
books of the Trust, and shall be held by the Trustees in trust for the benefit of the Shareholders
of that Series. The assets belonging to a Series shall be charged with the liabilities of that
Series and all expenses, costs, charges and reserves attributable to that Series, except that
18
liabilities and expenses allocated solely to a particular Class shall be borne by that Class.
Any general liabilities, expenses, costs, charges or reserves of the Trust which are not readily
identifiable as belonging to any particular Series or Class shall be allocated and charged by the
Trustees between or among any one or more of the Series or Classes in such manner as the Trustees
deem fair and equitable. Each such allocation shall be conclusive and binding upon the
Shareholders of all Series or Classes for all purposes.
Without limiting the foregoing, but subject to the right of the Trustees to allocate general
liabilities, expenses, costs, charges or reserves as herein provided, (a) the debts, liabilities,
obligations and expenses incurred, contracted for or otherwise existing with respect to a
particular Series shall be enforceable against the assets of such Series only, and not against the
assets of any other Series or against the assets of the Trust generally, and (b) none of the debts,
liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect
to the Trust generally or any other Series thereof shall be enforceable against the assets of such
Series. Notice of this contractual limitation on liabilities among Series has been set out in the
Certificate, and upon the giving of such notice in the Certificate, the statutory provisions of
Section 3804 of the Delaware Act relating to limitations on liabilities among Series (and the
statutory effect under Section 3804 of setting out such notice in the Certificate) became
applicable to the Trust and each Series. Any person extending credit to, contracting with or
having any claim against any Series may look only to the assets of that Series to satisfy or
enforce any debt, with respect to that Series. No Shareholder or former Shareholder of any Series
shall have a claim on or any right to any assets allocated or belonging to any other Series.
Section 5. Ownership and Transfer of Shares. The Trust or a transfer or similar agent
for the Trust shall maintain a register containing the names and addresses of the Shareholders of
the Trust and/or of each Series and Class thereof, the number of Shares of the Trust and/or each
Series and Class held by such Shareholders, and a record of all Share transfers. The register
shall be conclusive as to the identity of Shareholders of record and the number of Shares held by
them from time to time. The Trustees may authorize the issuance of certificates representing
Shares and adopt rules governing their use. The Trustees may make rules governing the transfer of
Shares, whether or not represented by certificates. Except as otherwise provided by the Trustees,
Shares shall be transferable on the books of the Trust only by the record holder thereof or by his
duly authorized agent upon delivery to the Trustees or the Trust’s transfer agent of a duly
executed instrument of transfer, together with a Share certificate if one is outstanding, and such
evidence or the genuineness of each such execution and authorization and of such other matters as
may be required by the Trustees. Upon such delivery, and subject to any further requirements
specified by the Trustees or contained in the By-Laws, the transfer shall be recorded on the books
of the Trust. Until a transfer is so recorded, the Shareholder of record of Shares shall be deemed
to be the holder of such Shares for all purposes hereunder and neither the Trustees nor the Trust,
nor any transfer agent or registrar or any officer, employee or agent of the Trust, shall be
affected by any notice of a proposed transfer.
Section 6. Status of Shares; Limitation of Shareholder Liability. Shares shall be
deemed to be personal property giving Shareholders only the rights provided in this Declaration.
Every Shareholder, by virtue of having acquired a Share, shall be held expressly to have assented
to and agreed to be bound by the terms of this Declaration and to have become a party hereto. No
Shareholder shall be personally liable for the debts, liabilities, obligations and expenses
incurred
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by, contracted for, or otherwise existing with respect to, the Trust or any Series. The
death, incapacity, dissolution, termination or bankruptcy of a Shareholder during the existence of
the Trust shall not operate to terminate the Trust, nor entitle the representative of any such
Shareholder to an accounting or to take any action in court or elsewhere against the Trust or the
Trustees, but entitles such representative only to the rights of such Shareholder under this Trust.
Ownership of Shares shall not entitle the Shareholder to any title in or to the whole or any part
of the Trust Property or right to call for a partition or division of the same or for an
accounting, nor shall the ownership of Shares constitute the Shareholders as partners. Neither the
Trust nor the Trustees shall have any power to bind any Shareholder personally or to demand payment
from any Shareholder for anything, other than as agreed by the Shareholder. Shareholders shall
have the same limitation of personal liability as is extended to shareholders of a private
corporation for profit incorporated in the State of Delaware. Every written obligation of the
Trust or any Series shall contain a statement to the effect that such obligation may only be
enforced against the assets of the appropriate Series or all Series; however, the omission of such
statement shall not operate to bind or create personal liability for any Shareholder or Trustee.
Section 7. Other Securities. The Trustees may authorize and issue such other
securities of the Trust other than Shares as they determine to be necessary, desirable or
appropriate, having such terms, rights, preferences, privileges, limitations and restrictions as
the Trustees see fit, including preferred interests, debt securities or other senior securities.
To the extent that the Trustees authorized and issue preferred shares of the Trust or any Class or
Series, they are hereby authorized and empowered to amend or supplement this Declaration as they
deem necessary or appropriate, including to comply with the requirements of the 1940 Act or
requirements imposed by the rating agencies or other Persons, all without the approval of
Shareholders. Any such supplement or amendment shall be filed as is necessary. The Trustees are
also authorized to take such actions and retain such persons as they see fit to offer and sell such
securities.
ARTICLE VI
DISTRIBUTIONS AND REDEMPTIONS
Section 1. Distributions. The Trustees or a committee of one or more Trustees may
declare and pay dividends and other distributions, including dividends on Shares of a particular
Series and other distributions from the assets belonging to that Series. No dividend or
distribution, including, without limitation, any distribution paid upon termination of the Trust or
of any Series (or Class) with respect to, nor any redemption or repurchase of, the Shares of any
Series (or Class) shall be effected by the Trust other than from the assets held with respect to
such Series, nor shall any Shareholder of any particular Series otherwise have any right or claim
against the assets held with respect to any other Series except to the extent that such Shareholder
has such a right or claim hereunder as a Shareholder of such other Series. The Trustees shall have
full discretion to determine which items shall be treated as income and which items as capital; and
each such determination and allocation shall be conclusive and binding upon the Shareholders. The
amount and payment of dividends or distributions and their form, whether they are in cash, Shares
or other Trust Property, shall be determined by the Trustees. Dividends and other distributions
may be paid pursuant to a standing resolution adopted once or more often as the Trustees determine.
Except as provided with respect to a particular Class in the By-Laws
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or the resolutions establishing such Class, all dividends and other distributions on Shares of
the Trust or a particular Series shall be distributed pro rata to the Shareholders of the Trust or
that Series in proportion to the number of Shares of the Trust or that Series they held on the
record date established for such payment. The Trustees may adopt and offer to Shareholders such
dividend reinvestment plans, cash dividend payout plans or similar plans as the Trustees deem
appropriate.
Section 2. Redemptions. Except as provided with respect to a particular Class in the
By-Laws or the resolutions establishing such Class, Shares of the Trust or any Series will not be
redeemed or repurchased by the Trust, except as the Trustees shall determine from time to time and
the Trust shall be under no obligation to redeem or repurchase Shares. The Trustees may specify
conditions, prices, and places of redemption, may specify binding requirements for the proper form
or forms of requests for redemption and may specify the amount of any redemption fee to be withheld
from redemption proceeds. Payment of the redemption price may be wholly or partly in securities or
other assets at the value of such securities or assets used in such determination of Net Asset
Value, or may be in cash. Upon redemption, Shares may be reissued from time to time. The Trustees
may require Shareholders to redeem Shares for any reason under terms set by the Trustees,
including, but not limited to, the failure of a Shareholder to supply a taxpayer identification
number if required to do so, or to have the minimum investment required, or to pay when due for the
purchase of Shares issued to him. To the extent permitted by law, the Trustees may retain the
proceeds of any redemption of Shares required by them for payment of amounts due and owing by a
Shareholder to the Trust or any Series or Class or any governmental authority. Notwithstanding the
foregoing, the Trustees may postpone payment of the redemption price and may suspend the right of
the Shareholders to require the Trust or any Series or Class to redeem Shares during any period of
time when and to the extent permissible under the 1940 Act.
Section 3. Determination of Net Asset Value. The Trustees shall cause the Net Asset
Value of Shares of the Trust or, as applicable, each Series or Class to be determined from time to
time in a manner consistent with applicable laws and regulations. The Trustees may delegate the
power and duty to determine Net Asset Value per Share to one or more Trustees or officers of the
Trust or to a custodian, depository or other agent appointed for such purpose. The Net Asset Value
of Shares shall be determined for the Trust or, as applicable, separately for each Series or Class
at such times as may be prescribed by the Trustees or, in the absence of action by the Trustees, as
of the close of trading on the New York Stock Exchange on the last day of each week.
Section 4. Suspension of Right of Redemption. If, as referred to in Section 2 of this
Article, the Trustees postpone payment of the redemption price and suspend the right of
Shareholders to redeem their Shares, such suspension shall take effect at the time the Trustees
shall specify, but not later than the close of business on the business day next following the
declaration of suspension. Thereafter Shareholders shall have no right of redemption or payment
until the Trustees declare the end of the suspension. If the right of redemption is suspended, a
Shareholder may withdraw his request for redemption.
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ARTICLE VII
SHAREHOLDERS’ VOTING POWERS AND MEETINGS
Section 1. Voting Powers. Subject to the voting rights established with respect to a
particular Class in the By-Laws or the resolutions establishing such Class, the Shareholders shall
have power to vote only with respect to (a) the election of Trustees as provided in Section 2 of
this Article; (b) the removal of Trustees as provided in Article II, Section 5(a); (c) any
investment advisory or management contract to the extent required by the 1940 Act; (d) the
amendment of this Declaration to the extent and as provided in Article X, Section 10; (e) the
conversion of the Trust to an open-end investment company to the extent provided in Article IX,
Section 5; (f) the reorganization of the Trust to the extent provided in Article IX, Section 6; (g)
to approve a transaction subject to Article IX, Section 7, and (h) such additional matters relating
to the Trust as may be required by the 1940 Act or any registration of the Trust with the
Commission or any State, or as the Trustees may consider desirable.
In the event there are any Outstanding Shares of any Series or Classes, on any matter
submitted to a vote of the Shareholders, all Shares shall be voted by individual Series or Class,
except (a) as provided with respect to a particular Class in the By-Laws or the resolutions
establishing such Class, (b) when required by the 1940 Act, Shares shall be voted in the aggregate
and not by individual Series or Class, and (c) when the Trustees have determined that the matter
affects the interests of more than one Series or Class, then the Shareholders of all such Series or
Classes shall be entitled to vote thereon. As determined by the Trustees without the vote or
consent of Shareholders and except as provided with respect to a particular Class in the By-Laws or
the resolutions establishing such Class, on any matter submitted to a vote of Shareholders either
(i) each whole Share shall be entitled to one vote as to any matter on which it is entitled to vote
and each fractional Share shall be entitled to a proportionate fractional vote or (ii) each dollar
of net asset value (number of Shares owned times net asset value per Share of such Series or Class,
as applicable) shall be entitled to one vote on any matter on which such Shares are entitled to
vote and each fractional dollar amount shall be entitled to a proportionate fractional vote.
Without limiting the power of the Trustees in any way to designate otherwise in accordance with the
preceding sentence, the Trustees hereby establish that each whole Share shall be entitled to one
vote as to any matter on which it is entitled to vote and each fractional Share shall be entitled
to a proportionate fractional vote. There shall be no cumulative voting in the election of
Trustees. Shares may be voted in person or by proxy or in any manner provided for in the By-Laws.
The By-Laws may provide that proxies may be given by any electronic or telecommunications device or
in any other manner, but if a proposal by anyone other than the officers or Trustees is submitted
to a vote of the Shareholders, or if there is a proxy contest or proxy solicitation or proposal in
opposition to any proposal by the officers or Trustees, Shares may be voted only in person or by
written proxy. Until Shares of a Series are issued, as to that Series the Trustees may exercise
all rights of Shareholders and may take any action required or permitted to be taken by
Shareholders by law, this Declaration or the By-Laws. Meetings of Shareholders shall be called and
notice thereof and record dates therefor shall be given and set as provided in the By-Laws.
Section 2. Quorum; Required Vote. One-third of the Outstanding Shares of each Series
or Class, or one-third of the Outstanding Shares of the Trust, entitled to vote in person or by
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proxy shall be a quorum for the transaction of business at a Shareholders’ meeting with
respect to such Series or Class, or with respect to the entire Trust, respectively. Any lesser
number shall be sufficient for adjournments. Any adjourned session of a Shareholders’ meeting may
be held within a reasonable time without further notice. Except when a larger vote is required by
the 1940 Act, this Declaration or the By-Laws, a majority of the Shares voting at a Shareholders’
meeting in person or by proxy shall decide any matters to be voted upon with respect to the entire
Trust and a plurality of such Shares shall elect a Trustee; provided, that if this Declaration or
applicable law permits or requires that Shares be voted on any matter by individual Series or
Classes, then a majority of the Shares of that Series or Class (or, if required by law, a majority
of the Shares outstanding and entitled to vote of that Series or Class) voting at a Shareholders’
meeting in person or by proxy on the matter shall decide that matter insofar as that Series or
Class is concerned.
Section 3. Record Dates. For the purpose of determining the Shareholders of the Trust
or any Series (or Class) who are entitled to receive payment of any dividend or of any other
distribution, the Trustees may from time to time fix a date, which shall be before the date for the
payment of such dividend or such other payment, as the record date for determining the Shareholders
of the Trust or such Series (or Class) having the right to receive such dividend or distribution.
Without fixing a record date, the Trustees may for distribution purposes close the register or
transfer books for the Trust or one or more Series (or Classes) any time prior to the payment of a
distribution. Nothing in this Section shall be construed as precluding the Trustees from setting
different record dates for different Series (or Classes).
Section 4. Additional Provisions. The By-Laws may include further provisions for
Shareholders’ votes and meetings and related matters.
ARTICLE VIII
EXPENSES OF THE TRUST AND SERIES
Section 1. Payment of Expenses by the Trust. Subject to Article V, Section 4, the
Trust or a particular Series shall pay, or shall reimburse the Trustees from the assets belonging
to the Trust or, as applicable, all Series or the particular Series, for their expenses (or the
expenses of a Class) and disbursements, including, but not limited to, interest charges, taxes,
brokerage fees and commissions; expenses of issue, repurchase and redemption of Shares; insurance
premiums; applicable fees, interest charges and expenses of third parties, including the Trust’s
investment advisers, managers, administrators, distributors, custodians, transfer agents and fund
accountants; fees of pricing, interest, dividend, credit and other reporting services; costs of
membership in trade associations; telecommunications expenses; funds transmission expenses;
auditing, legal and compliance expenses; costs of forming the Trust and each Series (if any) and
maintaining its existence; costs of preparing and printing the prospectuses of the Trust and each
Series (if any), statements of additional information and Shareholder reports and delivering them
to Shareholders; expenses of meetings of Shareholders and proxy solicitations therefor; costs of
maintaining books and accounts; costs of reproduction, stationery and supplies; fees and expenses
of the Trustees; compensation of the Trust’s officers and employees and costs of other personnel
performing services for the Trust or any Series; costs of Trustee meetings; Commission registration
fees and related expenses; state or foreign securities laws registration
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fees and related expenses; and for such non-recurring items as may arise, including litigation
to which the Trust or a Series (or a Trustee or officer of the Trust acting as such) is a party,
and for all losses and liabilities by them incurred in administering the Trust. The Trustees shall
have a lien on the assets belonging to the Trust or, as applicable, the appropriate Series, or in
the case of an expense allocable to more than one Series, on the assets of each such Series, prior
to any rights or interests of the Shareholders thereto, for the reimbursement to them of such
expenses, disbursements, losses and liabilities.
Section 2. Payment of Expenses by Shareholders. The Trustees shall have the power, as
frequently as they may determine, to cause each Shareholder, or each Shareholder of any particular
Series or Class, to pay directly, in advance or arrears, for charges of the Trust’s custodian or
transfer, shareholder servicing or similar agent, an amount fixed from time to time by the
Trustees, by setting off such charges due from such Shareholder from declared but unpaid dividends
owed such Shareholder and/or by reducing the number of Shares in the account of such Shareholder by
that number of full and/or fractional Shares which represents the outstanding amount of such
charges due from such Shareholder.
ARTICLE IX
MISCELLANEOUS
Section 1. Trust Not a Partnership. This Declaration creates a trust and not a
partnership. No Trustee shall have any power to bind personally either the Trust’s officers or
any Shareholder.
Section 2. Trustee Action. The exercise by the Trustees of their powers and
discretion hereunder in good faith and with reasonable care under the circumstances then prevailing
shall be binding upon everyone interested. Subject to the provisions of Article IV, the Trustees
shall not be liable for errors of judgment or mistakes of fact or law.
Section 3. Record Dates. The Trustees may fix in advance a date up to ninety (90)
days before the date of any Shareholders’ meeting, or the date for the payment of any dividends or
other distributions, or the date for the allotment of rights, or the date when any change or
conversion or exchange of Shares shall go into effect as a record date for the determination of the
Shareholders entitled to notice of, and to vote at, any such meeting, or entitled to receive
payment of such dividend or other distribution, or to receive any such allotment of rights, or to
exercise such rights in respect of any such change, conversion or exchange of Shares.
Section 4. Termination of the Trust.
(a) This Trust shall have perpetual existence subject to the provisions of this Section 4.
(b) The Trust or any Series or Class thereof may be dissolved and terminated by the
affirmative vote of not less than three-quarters of the Trustees then in office by written notice
to the Shareholders.
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(c) In connection with subsection (b) or to the extent appropriate in connection with a
reorganization as provided in Article IX, Section 6, upon making reasonable provision for the
payment of all known liabilities of the Trust or, as applicable, all Series or any affected Series
or Classes, by such assumption or otherwise, the Trustees shall distribute the remaining proceeds
or assets (as the case may be) ratably among the Shareholders of the Trust or, as applicable, all
Series or any affected Series or Classes; however, the payment to any particular Class may be
reduced by any fees, expenses or charges allocated to that Class.
(d) Upon completion of the distribution of the remaining proceeds or assets pursuant to
subsection (c) above, the Trust or affected Series or Classes shall terminate and the Trustees and
the Trust shall be discharged of any and all further liabilities and duties hereunder with respect
thereto and the right, title and interest of all parties therein shall be canceled and discharged.
Upon termination of the Trust, following completion of winding up of its business, the Trustees
shall cause a certificate of cancellation of the Trust’s Certificate to be filed in accordance with
the Delaware Act, which certificate of cancellation may be signed by any one Trustee.
Section 5. Conversion to an Open-End Investment Company. Notwithstanding any other
provisions of this Declaration or the By-Laws of the Trust, a favorable vote of a majority of the
Trustees then in office followed by the favorable vote of the holders of not less than
three-quarters of the Shares of the Trust or, as applicable, each affected class or series
outstanding, voting as separate classes or series, shall be required to approve, adopt or authorize
an amendment to this Declaration that makes the Shares a “redeemable security” as that term is
defined in the 1940 Act, unless such amendment has been approved by three-quarters of the Trustees,
in which case approval by a vote of a majority of the Shares outstanding and entitled to vote shall
be required. Upon the adoption of a proposal to convert the Trust from a “closed-end company” to
an “open-end company” as those terms are defined by the 1940 Act and the necessary amendments to
this Declaration to permit such a conversion of the Trust’s outstanding Shares entitled to vote,
the Trust shall, upon complying with any requirements of the 1940 Act and state law, become an
“open-end” investment company. Such affirmative vote or consent shall be in addition to the vote
or consent of the holders of the Shares otherwise required by law, or any agreement between the
Trust and any national securities exchange.
Section 6. Reorganization.
(a) Except as provided in clause (b) of this Section 6 or in Section 7 of this Article IX,
subject to the affirmative vote of not less than three-quarters of the Outstanding Shares entitled
to vote of the Trust or any affected Series, the Trust may merge or consolidate with any other
corporation, association, trust or other organization or may sell, lease or exchange all or
substantially all of the Trust Property or the property, including its good will, upon such terms
and conditions and for such consideration when and as authorized by a majority of the Trustees;
provided however, if at least three-quarters of the Trustees then in office have approved such
transaction, then the actions may be approved by the affirmative vote of a majority of the
Outstanding Shares entitled to vote of the Trust or the affected Series.
(b) Notwithstanding anything else herein, to change the Trust’s form or place of organization
the Trustees may, without Shareholder approval unless such approval is required
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by applicable law, (i) cause the Trust to merge or consolidate with or into one or more
entities, if the surviving or resulting entity is the Trust or any other corporation, association,
trust or other organization, or a series thereof, (ii) cause the Shares to be exchanged under or
pursuant to any state or federal statute to the extent permitted by law, or (iii) cause the Trust
to incorporate, organize or form under the laws of Delaware or any other U.S. jurisdiction. Any
agreement of merger or consolidation or certificate of merger may be signed by a majority of
Trustees and facsimile signatures conveyed by electronic or telecommunication means shall be valid.
(c) Pursuant to and in accordance with the provisions of Section 3815(f) of the Delaware Act,
an agreement of merger or consolidation approved by the Trustees, and if applicable, Shareholders
in accordance with this Section 6 may effect any amendment to the Declaration or effect the
adoption of a new trust instrument of the Trust if it is the surviving or resulting trust in the
merger or consolidation.
(d) The Trustees may create one or more statutory trusts to which all or any part of the
assets, liabilities, profits or losses of the Trust or any Series or Class thereof may be
transferred and may provide for the conversion of Shares in the Trust or any Series or Class
thereof into beneficial interests in any such newly created trust or trusts or any series or
classes thereof.
Section 7. Certain Transactions.
(a) Notwithstanding any other provision of this Declaration and subject to the exceptions
provided in paragraph (d) of this Section, the types of transactions described in paragraph (c) of
this Section shall require the affirmative vote or consent of a majority of the Trustees then in
office followed by the affirmative vote or consent of holders of not less than three-quarters of
the Shares of the Trust or, as applicable, each affected class or series outstanding, votes voting
as separate classes or series, when a Principal Shareholder (as defined in paragraph (b) of this
Section) is a party to the transaction. Such affirmative vote or consent shall be in addition to
the vote or consent of the holders of Shares otherwise required by law or by the terms of any class
or series of preferred stock, whether now or hereafter authorized, or any agreement between the
Trust and any national securities exchange.
(b) The term “Principal Shareholder” shall mean any corporation, Person or other entity which
is the beneficial owner, directly or indirectly, of five percent (5%) or more of the outstanding
Shares of the Trust or, as applicable, any class or series and shall include any affiliate or
associates, as such terms are defined in clause (ii) below, of a Principal Shareholder. For the
purpose of this Section, in addition to the Shares which a corporation, Person or other entity
beneficially owns directly, (a) any corporation, Person or other entity shall be deemed to be the
beneficial owner of any Shares (i) which it has the right to acquire pursuant to any agreement or
upon exercise of conversion rights or warrants, or otherwise (but excluding Share options granted
by the Trust) or (ii) which are beneficially owned, directly or indirectly (including Shares deemed
owned through application of clause (i) above, by any other corporation, Person or entity with
which its “affiliate” or “associate” (as defined below) has any agreement, arrangement or
understanding for the purpose of acquiring, holding, voting or disposing of Shares, of which is its
“affiliate” or “associate” as those terms are defined in Rule 12b-2 of the General Rules and
Regulations under the Securities Exchange Act of 1934, and
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(b) the outstanding Shares shall include Shares deemed owned through application of clauses
(i) and (ii) above but shall not include any other Shares which may be issuable pursuant to any
agreement, or upon exercise of conversion rights or warrants, or otherwise.
(c) This Section shall apply to the following transactions:
(i) The merger or consolidation of the Trust or any subsidiary of the Trust
with or into any Principal Shareholder.
(ii) The issuance of any securities of the Trust to any Principal Shareholder
(other than pursuant to any automatic dividend reinvestment plan).
(iii) The sale, lease or exchange by the Trust or any subsidiary thereof, of
any assets to any Principal Shareholder (except assets having an aggregate fair
market value of less than $1,000,000, aggregating for the purpose of such
computation all assets sold, leased or exchanged in any series of similar
transactions within a twelve-month period.)
(iv) The sale, lease or exchange to the Trust or any subsidiary thereof, in
exchange for securities of the Trust, of any assets of any Principal Shareholder
(except assets having an aggregate fair market value of less than $1,000,000,
aggregating for the purposes of such computation all assets sold, leased or
exchanged in any series of similar transactions within a twelve-month period).
(d) The provisions of this Section shall not be applicable to (i) any of the transactions
described in paragraph (c) of this Section if three-quarters of the Trustees shall by resolution
have approved a memorandum of understanding with such Principal Shareholder with respect to and
substantially consistent with such transaction, in which case approval by the vote of a majority of
the Shares outstanding and entitled to vote shall be the only vote of Shareholders required by this
Section, or (ii) any such transaction with any entity of which a majority of the outstanding Shares
of all classes and series of a stock normally entitled to vote in elections of directors is owner
of record or beneficially by the Trust and its subsidiaries.
(e) The Board of Trustees shall have the power and duty to determine for the purposes of this
Section on the basis of information known to the Trust whether (i) a corporation, person or entity
beneficially owns five percent (5%) or more of the outstanding Shares of the Trust or, as
applicable, any class or series, (ii) a corporation, person or entity is an “affiliate” or
“associate” (as defined above) of another, (iii) the assets being acquired or leased to or by the
Trust or any subsidiary thereof constitute a substantial part of the assets of the Trust and have
an aggregate fair market value of less than $1,000,000, and (iv) the memorandum of understanding
referred to in paragraph (d) hereof is substantially consistent with the transaction covered
thereby. Any such determination shall be conclusive and binding for all purposes of this Section.
Section 8. Declaration of Trust. The original or a copy of this Declaration of Trust
and of each amendment hereto or Declaration of Trust supplemental shall be kept at the office of
the Trust where it may be inspected by any Shareholder. Anyone dealing with the Trust may rely on
a certificate by a Trustee or an officer of the Trust as to the authenticity of the Declaration of
Trust or any such amendments or supplements and as to any matters in connection with the
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Trust. The masculine gender herein shall include the feminine and neuter genders. Headings
herein are for convenience only and shall not affect the construction of this Declaration of Trust.
This Declaration of Trust may be executed in any number of counterparts, each of which shall be
deemed an original.
Section 9. Applicable Law. This Declaration and the Trust created hereunder are
governed by and construed and administered according to the Delaware Act and the applicable laws of
the State of Delaware; provided, however, that there shall not be applicable to the Trust, the
Trustees or this Declaration of Trust (a) the provisions of Section 3540 of Title 12 of the
Delaware Code, or (b) any provisions of the laws (statutory or common) of the State of Delaware
(other than the Delaware Act) pertaining to trusts which relate to or regulate (i) the filing with
any court or governmental body or agency of trustee accounts or schedules of trustee fees and
charges, (ii) affirmative requirements to post bonds for trustees, officers, agents or employees of
a trust, (iii) the necessity for obtaining court or other governmental approval concerning the
acquisition, holding or disposition of real or personal property, (iv) fees or other sums payable
to trustees, officers, agents or employees of a trust, (v) the allocation of receipts and
expenditures to income or principal, (vi) restrictions or limitations on the permissible nature,
amount or concentration of trust investments or requirements relating to the titling, storage or
other manner of holding of trust assets, or (vii) the establishment of fiduciary or other standards
of responsibilities or limitations on the acts or powers of trustees, which are inconsistent with
the limitations or liabilities or authorities and powers of the Trustees set out or referenced in
this Declaration. The Trust shall be of the type commonly called a Delaware statutory trust, and,
without limiting the provisions hereof, the Trust may exercise all powers which are ordinarily
exercised by such a trust under Delaware law. The Trust specifically reserves the right to
exercise any of the powers or privileges afforded to trusts or actions that may be engaged in by
trusts under the Delaware Act, and the absence of a specific reference herein to any such power,
privilege or action shall not imply that the Trust may not exercise such power or privilege or take
such actions.
Section 10. Amendments.
(a) The Trustees may, without any Shareholder vote, amend or otherwise supplement this
Declaration by making an amendment, a Declaration of Trust supplemental hereto or an amended and
restated trust instrument; provided, that Shareholders shall have the right to vote on any
amendment (a) which would affect the voting rights of Shareholders granted in Article VII, Section
l, (b) to this Section 10, (c) required to be approved by Shareholders by the 1940 Act or by the
Trust’s registration statement(s) filed with the Commission or any State, and (d) submitted to them
by the Trustees in their discretion. Any amendment submitted to Shareholders which the Trustees
determine would affect the Shareholders of any Series or Class shall be authorized by vote of the
Shareholders of such Series or such Class and no vote shall be required of Shareholders of a Series
or Class not affected. Notwithstanding anything else herein, any amendment to Article IV which
would have the effect of reducing the indemnification and other rights provided thereby to
Trustees, officers, employees, and agents of the Trust or to Shareholders or former Shareholders,
and any repeal or amendment of this sentence shall each require the affirmative vote of the holders
of two-thirds of the Outstanding Shares of the Trust entitled to vote thereon and no such amendment
shall effect the right to indemnification of any person who is no longer a Trustee, Officer or
employee or agent at the time of such amendment
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or of any person with respect to any act or omission taken or omitted prior to the adoption or
enactment of such amendment or repeal.
(b) The Trustees may not amend this Declaration of Trust to eliminate the rights of
Shareholders of the Trust or of any Class or Series as set out in this Section 10(b) to vote on any
amendment of this Declaration of Trust or the By-Laws or alter or amend the percentage of voting
Shares required to approve any amendment or action which requires a specific Shareholder vote under
this Declaration of Trust or the By-Laws unless an equivalent vote has authorized such an amendment
of the Declaration of Trust or By-Laws. Any amendment which adversely affects the holders of one
or more Classes or Series of Shares shall require a vote of the Shareholders holding a majority of
the Shares of each Class or Series so adversely affected and entitled to vote thereon and no vote
of Shareholders of any Class or Series not so adversely affected shall be required, except that any
amendment of any provision of Article IX, Sections 5, 6 or 7 shall require the vote of the
Shareholders holding three-quarters of the Shares of each Class and Series entitled to vote
thereon, regardless of the percentage of Trustees recommending such amendment.
Section 11. Derivative Actions. In addition to the requirements set out in Section
3816 of the Delaware Act, a Shareholder may bring a derivative action on behalf of the Trust only
if the following conditions are met:
(a) The Shareholder or Shareholders must make a pre-suit demand upon the Trustees to bring the
subject action unless an effort to cause the Trustees to bring such an action is not likely to
succeed. For purposes of this Section 11(a), a demand on the Trustees shall only be deemed not
likely to succeed and therefore excused if a majority of the Board of Trustees, or a majority of
any committee established to consider the merits of such action, is composed of Trustees who are
not “independent trustees” (as that term is defined in the Delaware Act).
(b) Unless a demand is not required under paragraph (a) of this Section 11, Shareholders
eligible to bring such derivative action under the Delaware Act who hold at least 10% of the
Outstanding Shares of the Trust, or 10% of the Outstanding Shares of the Series or Class to which
such action relates, shall join in the request for the Trustees to commence such action; and
(c) Unless a demand is not required under paragraph (a) of this Section 11, the Trustees must
be afforded a reasonable amount of time to consider such Shareholder request and to investigate the
basis of such claim. The Trustees shall be entitled to retain counsel or other advisers in
considering the merits of the request and shall require an undertaking by the Shareholders making
such request to reimburse the Trust for the expense of any such advisers in the event that the
Trustees determine not to bring such action.
For purposes of this Section 11, the Board of Trustees may designate a committee of one
Trustee to consider a Shareholder demand if necessary to create a committee with a majority of
Trustees who are independent trustees.
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Section 12. Fiscal Year. The fiscal year of the Trust shall end on a specified date
as set out in the By-Laws. The Trustees may change the fiscal year of the Trust without
Shareholder approval.
Section 13. Severability. The provisions of this Declaration are severable. If the
Trustees determine, with the advice of counsel, that any provision hereof conflicts with the 1940
Act, the regulated investment company provisions of the Internal Revenue Code or with other
applicable laws and regulations, the conflicting provision shall be deemed never to have
constituted a part of this Declaration; provided, however, that such determination shall not affect
any of the remaining provisions of this Declaration or render invalid or improper any action taken
or omitted prior to such determination. If any provision hereof shall be held invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall attach only to such
provision only in such jurisdiction and shall not affect any other provision of this Declaration.
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IN WITNESS WHEREOF, the undersigned have executed this Amended and Restated Agreement and
Declaration of Trust as of the date first written above.
| /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇ | ||||
| ▇▇▇▇▇ ▇. ▇▇▇▇▇ | ||||
| as Trustee and not individually | ||||
| /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇ | ||||
| ▇▇▇▇▇▇ ▇. ▇▇▇▇▇ | ||||
| as Trustee and not individually | ||||
| /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ | ||||
| ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ | ||||
| as Trustee and not individually | ||||
| /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇ | ||||
| ▇▇▇▇▇ ▇. ▇▇▇▇▇ | ||||
| as Trustee and not individually | ||||