EXHIBIT (K)(ii)
ADDITIONAL COMPENSATION AGREEMENT
ADDITIONAL COMPENSATION AGREEMENT (the "Agreement"), dated as of
September 28, 2004, between Xxxxxxx Xxxxx & Co., Xxxxxxx Lynch, Pierce, Xxxxxx &
Xxxxx Incorporated ("Xxxxxxx Xxxxx") and Deutsche Investment Management Americas
Inc. ("DeIM").
WHEREAS, Xxxxxxx Global Commodities Stock Fund, Inc. (including any
successor by merger or otherwise, the "Fund") is a non-diversified, closed-end
management investment company registered under the Investment Company Act of
1940, as amended (the "1940 Act"), and its shares of common stock ("common
shares") are registered under the Securities Act of 1933, as amended; and
WHEREAS, DeIM is the investment manager and the administrator of the
Fund;
WHEREAS, Xxxxxxx Xxxxx is acting as lead underwriter in an offering of
the Fund's common shares;
WHEREAS, DeIM desires to provide additional compensation to Xxxxxxx
Xxxxx for acting as lead underwriter in an offering of the Fund's common shares;
and
WHEREAS, DeIM desires to retain Xxxxxxx Xxxxx to provide after-market
support services designed to maintain the visibility of the Fund on an ongoing
basis, and Xxxxxxx Xxxxx is willing to render such services;
NOW, THEREFORE, in consideration of the mutual terms and conditions set
forth below, the parties hereto agree as follows:
1. (a) DeIM hereby employs Xxxxxxx Xxxxx, for the period and on the terms
and conditions set forth herein, to provide the following services at
the reasonable request of DeIM:
(1) after-market support services designed to maintain
the visibility of the Fund on an ongoing basis.
(2) relevant information, studies or reports regarding
general trends in the closed-end investment company
and asset management industries, if reasonably
obtainable, and consult with representatives of DeIM
in connection therewith; and
(3) information to and consult with DeIM with respect to
applicable strategies designed to address market
value discounts, if any.
(b) At the request of XxXX, Xxxxxxx Xxxxx shall limit or cease any
action or service provided hereunder to the extent and for the
time period requested by DeIM; provided, however, that pending
termination of this Agreement as provided for in Section 6
hereof, any such limitation or cessation shall not relieve
DeIM of its payment obligations pursuant to Section 2 hereof.
(c) Xxxxxxx Xxxxx will promptly notify DeIM if it learns of any
material inaccuracy or misstatement in, or material omission
from, any written information provided by Xxxxxxx Xxxxx to
DeIM in connection with the performance of services by Xxxxxxx
Xxxxx under this Agreement.
2. DeIM shall pay Xxxxxxx Xxxxx a fee computed monthly and payable
quarterly in arrears commencing September 28, 2004 at an annualized
rate of 0.15% of the Fund's Managed Assets
(as defined below) for a term as described in Section 6 hereof;
provided that the total amount of the fee hereunder shall not exceed
____% of the total price to the public of the Fund's common shares sold
pursuant to the prospectus dated September 28, 2004 (including all
Initial Securities and Option Securities as such terms are described in
the Purchase Agreement, dated September 23, 2004, by and among the
Fund, DeIM and each of the Underwriters named therein (the "Purchase
Agreement"). The sum total of this fee, the fee payable to X.X. Xxxxxxx
& Sons, Inc. ("X.X. Xxxxxxx") pursuant to the Corporate Finance
Services and Consulting Agreement, dated as of September 28, 2004,
between X.X. Xxxxxxx and XxXX, the fee payable to UBS Securities LLC
("UBS") pursuant to the Additional Compensation Agreement, dated as of
September 28, 2004, between UBS and DeIM, plus the amount of the
expense reimbursement of $___ per common share payable by the Fund to
the underwriters pursuant to the Purchase Agreement, and the amount of
any other fees or reimbursements paid by the Fund to the underwriters
pursuant to the Purchase Agreement, but not including the sales load,
shall not exceed 4.5% of the total price to the public of the Fund's
common shares sold pursuant to the Prospectus (the "Maximum Additional
Compensation Amount"). The sum total of all fees paid to Xxxxxxx Xxxxx
included in the preceding sentence is referred to in this Agreement as
the "Xxxxxxx Xxxxx Maximum Additional Compensation Amount." Xxxxxxx
Xxxxx hereby undertakes to notify DeIM when the Xxxxxxx Xxxxx Maximum
Additional Compensation Amount has been paid by DeIM. "Managed Assets"
is defined as the net asset value of common shares plus the liquidation
preference of any Fund preferred stock plus the principal amount of any
borrowings. All quarterly fees payable hereunder shall be paid to
Xxxxxxx Xxxxx within 15 days following the end of each calendar
quarter.
3. DeIM shall be permitted to discharge all or a portion of its payment
obligations hereunder upon prepayment in full or in part of the
remaining balance due of the Xxxxxxx Xxxxx Maximum Additional
Compensation Amount described in paragraph 2 above.
4. DeIM acknowledges that the services of Xxxxxxx Xxxxx provided for
hereunder do not include any advice as to the value of securities or
regarding the advisability of purchasing or selling any securities for
the Fund's portfolio. No provision of this Agreement shall be
considered as creating, nor shall any provision create, any obligation
on the part of Xxxxxxx Xxxxx, and Xxxxxxx Xxxxx is not hereby agreeing,
to: (i) furnish any advice or make any recommendations regarding the
purchase or sale of portfolio securities or (ii) render any opinions,
valuations or recommendations of any kind or to perform any such
similar services in connection with providing the services described in
Section 1 hereof.
5. Nothing herein shall be construed as prohibiting Xxxxxxx Xxxxx or its
affiliates from providing similar or other services to any other
clients (including other registered investment companies or other
investment managers), so long as Xxxxxxx Xxxxx'x services to DeIM are
not impaired thereby.
6. The term of this Agreement shall commence upon the date referred to
above and shall be in effect only so long as DeIM acts as the
investment manager to the Fund pursuant to the Management Agreement (as
such term is defined in the Purchase Agreement) or other subsequent
advisory agreement; provided, however, that this Agreement shall
terminate on the earliest to occur of (a) the payment by DeIM to
Xxxxxxx Xxxxx of the Maximum Additional Xxxxxxx Xxxxx Compensation
Amount, (b) the payment by DeIM of the Maximum Additional Compensation
Amount, (c) the dissolution and winding up of the Fund and (d) the date
on which the Management Agreement or other subsequent advisory
agreement between the Fund and DeIM shall terminate.
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7. DeIM will xxxxxxx Xxxxxxx Xxxxx with such information as Xxxxxxx Xxxxx
reasonably believes appropriate to its assignment hereunder (all such
information so furnished being the "Information"). DeIM recognizes and
confirms that Xxxxxxx Xxxxx (a) will use and rely primarily on the
Information and on information available from generally recognized
public sources in performing the services contemplated by this
Agreement without having independently verified the same and (b) except
as provided in Section 1(c) of this Agreement, does not assume
responsibility for the accuracy or completeness of the Information and
such other information. To the best of DeIM's knowledge, the
Information to be furnished by DeIM when delivered, will be true and
correct in all material respects and will not contain any material
misstatement of fact or omit to state any material fact necessary to
make the statements contained therein not misleading. DeIM will
promptly notify Xxxxxxx Xxxxx if it learns of any material inaccuracy
or misstatement in, or material omission from, any Information
delivered to Xxxxxxx Xxxxx.
8. DeIM agrees that Xxxxxxx Xxxxx shall have no liability to DeIM or the
Fund for any act or omission to act by Xxxxxxx Xxxxx in the course of
its performance under this Agreement, in the absence of gross
negligence or willful misconduct on the part of Xxxxxxx Xxxxx. XxXX
agrees to the indemnification and other agreements set forth in the
Indemnification Agreement attached hereto, the provisions of which are
incorporated herein by reference and shall survive the termination,
expiration or supersession of this Agreement.
9. This Agreement and any claim, counterclaim or dispute of any kind or
nature whatsoever arising out of or in any way relating to this
Agreement ("Claim") shall be governed by and construed in accordance
with the laws of the State of New York.
10. No Claim may be commenced, prosecuted or continued in any court other
than the courts of the State of New York located in the City and County
of New York or in the United States District Court for the Southern
District of New York, which courts shall have exclusive jurisdiction
over the adjudication of such matters, and DeIM and Xxxxxxx Xxxxx
consent to the jurisdiction of such courts and personal service with
respect thereto. Each of Xxxxxxx Xxxxx and XxXX waives all right to
trial by jury in any proceeding (whether based upon contract, tort or
otherwise) in any way arising out of or relating to this Agreement.
DeIM agrees that a final judgment in any proceeding or counterclaim
brought in any such court shall be conclusive and binding upon DeIM and
may be enforced in any other courts to the jurisdiction of which DeIM
is or may be subject, by suit upon such judgment.
11. This Agreement may not be assigned by either party without the prior
written consent of the other party.
12. Neither this Agreement nor the performance of the services contemplated
hereunder shall be considered to constitute a partnership, association
or joint venture between DeIM and Xxxxxxx Xxxxx. In addition, nothing
in this Agreement shall be construed to constitute Xxxxxxx Xxxxx as the
agent or employee of DeIM or DeIM as the agent or employee of Xxxxxxx
Xxxxx and neither of the parties hereto shall make any representation
to the contrary.
13. This Agreement (including the attached Indemnification Agreement)
embodies the entire agreement and understanding between the parties
hereto with respect to the subject matter hereof and supersedes all
prior agreements and understandings relating to the subject matter
hereof. If any provision of this Agreement is determined to be invalid
or unenforceable in any respect, such determination will not affect
such provision in any other respect or any other provision of this
Agreement, which will remain in full force and effect. This Agreement
may not be amended or
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otherwise modified or waived except by an instrument in writing signed
by both Xxxxxxx Xxxxx and XxXX.
14. All notices required or permitted to be sent under this Agreement shall
be sent, if to DeIM:
Deutsche Investment Management Americas Inc.
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: President
or if to Xxxxxxx Xxxxx:
Xxxxxxx Xxxxx & Co.
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
4 World Financial Center
New York, New York 10080
Attention: Xxx Xxx
or such other name or address as may be given in writing to the other
parties. Any notice shall be deemed to be given or received on the
third day after deposit in the US mail with certified postage prepaid
or when actually received, whether by hand, express delivery service or
facsimile transmission, whichever is earlier.
15. This Agreement may be executed in separate counterparts, each of which
is deemed to be an original and all of which taken together constitute
one and the same agreement.
IN WITNESS WHEREOF, the parties hereto have duly executed this
Additional Compensation Agreement as of the date first above written.
DEUTSCHE INVESTMENT MANAGEMENT AMERICAS INC.
By: _____________________________
Name:
Title:
XXXXXXX XXXXX & CO.
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX INCORPORATED
By: _____________________________
Name:
Title:
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XXXXXXX XXXXX & CO. INDEMNIFICATION AGREEMENT
September 28, 2004
Xxxxxxx Xxxxx & Co.
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
0 Xxxxx Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
In connection with the engagement of Xxxxxxx Xxxxx & Co., Xxxxxxx
Lynch, Pierce, Xxxxxx & Xxxxx Incorporated ("Xxxxxxx Xxxxx") to advise and
assist the undersigned (together with its affiliates and subsidiaries, referred
to as the "Company") with the matters set forth in the Agreement dated September
28, 2004 between the Company and Xxxxxxx Xxxxx (the "Agreement"), in the event
that Xxxxxxx Xxxxx becomes involved in any capacity in any claim, suit, action,
proceeding, investigation or inquiry (including, without limitation, any
shareholder or derivative action or arbitration proceeding) (collectively, a
"Proceeding") in connection with any matter in any way relating to or referred
to in the Agreement or arising out of the matters contemplated by the Agreement,
the Company agrees to indemnify, defend and hold Xxxxxxx Xxxxx harmless to the
fullest extent permitted by law, from and against any losses, claims, damages,
liabilities and expenses in connection with any matter in any way relating to or
referred to in the Agreement or arising out of the matters contemplated by the
Agreement, except to the extent that it shall be determined by a court of
competent jurisdiction in a judgment that has become final in that it is no
longer subject to appeal or other review, that such losses, claims, damages,
liabilities and expenses resulted solely from the gross negligence or willful
misconduct of Xxxxxxx Xxxxx. In addition, in the event that Xxxxxxx Xxxxx
becomes involved in any capacity in any Proceeding in connection with any matter
in any way relating to or referred to in the Agreement or arising out of the
matters contemplated by the Agreement, the Company will reimburse Xxxxxxx Xxxxx
for its legal and other expenses (including the cost of any investigation and
preparation) as such expenses are incurred by Xxxxxxx Xxxxx in connection
therewith. If such indemnification were not to be available for any reason, the
Company agrees to contribute to the losses, claims, damages, liabilities and
expenses involved (i) in the proportion appropriate to reflect the relative
benefits received or sought to be received by the Company and its stockholders
and affiliates and other constituencies, on the one hand, and Xxxxxxx Xxxxx, on
the other hand, in the matters contemplated by the Agreement or (ii) if (but
only if and to the extent) the allocation provided for in clause (i) is for any
reason held unenforceable, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause (i) but also the relative fault
of the Company and its stockholders and affiliates and other constituencies, on
the one hand, and the party entitled to contribution, on the other hand, as well
as any other relevant equitable considerations. The Company agrees that for the
purposes of this paragraph the relative benefits received, or sought to be
received, by the Company and its stockholders and affiliates, on the one hand,
and the party entitled to contribution, on the other hand, of a transaction as
contemplated shall be deemed to be in the same proportion that the total value
received or paid or contemplated to be received or paid by the Company or its
stockholders or affiliates and other constituencies, as the case may be, as a
result of or in connection with the transaction (whether or not consummated) for
which Xxxxxxx Xxxxx has been retained to perform financial services bears to the
fees paid to Xxxxxxx Xxxxx under the Agreement; provided, that in no event shall
the Company contribute less than the amount necessary to assure that Xxxxxxx
Xxxxx is not liable for losses, claims, damages, liabilities and expenses in
excess of the amount of fees actually received by Xxxxxxx Xxxxx pursuant to the
Agreement. Relative fault shall be determined by reference to, among other
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things, whether any alleged untrue statement or omission or any other alleged
conduct relates to information provided by the Company or other conduct by the
Company (or its employees or other agents), on the one hand, or by Xxxxxxx
Xxxxx, on the other hand. The Company will not settle any Proceeding in respect
of which indemnity may be sought hereunder, whether or not Xxxxxxx Xxxxx is an
actual or potential party to such Proceeding, without Xxxxxxx Xxxxx'x prior
written consent. For purposes of this Indemnification Agreement, Xxxxxxx Xxxxx
shall include Xxxxxxx Xxxxx & Co., Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated, any of its affiliates, each other person, if any, controlling
Xxxxxxx Xxxxx or any of its affiliates, their respective officers, current and
former directors, employees and agents, and the successors and assigns of all of
the foregoing persons. The foregoing indemnity and contribution agreement shall
be in addition to any rights that any indemnified party may have at common law
or otherwise.
The Company agrees that neither Xxxxxxx Xxxxx nor any of its
affiliates, directors, agents, employees or controlling persons shall have any
liability to the Company or any person asserting claims on behalf of or in right
of the Company in connection with or as a result of either Xxxxxxx Xxxxx'x
engagement under the Agreement or any matter referred to in the Agreement,
including, without limitation, related services and activities prior to the date
of the Agreement, except to the extent that it shall be determined by a court of
competent jurisdiction in a judgment that has become final in that it is no
longer subject to appeal or other review that any losses, claims, damages,
liabilities or expenses incurred by the Company resulted solely from the gross
negligence or willful misconduct of Xxxxxxx Xxxxx in performing the services
that are the subject of the Agreement.
THIS INDEMNIFICATION AGREEMENT AND ANY CLAIM, COUNTERCLAIM OR DISPUTE
OF ANY KIND OR NATURE WHATSOEVER ARISING OUT OF OR IN ANY WAY RELATING TO THIS
AGREEMENT ("CLAIM"), DIRECTLY OR INDIRECTLY, SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. EXCEPT AS SET FORTH BELOW,
NO CLAIM MAY BE COMMENCED, PROSECUTED OR CONTINUED IN ANY COURT OTHER THAN THE
COURTS OF THE STATE OF NEW YORK LOCATED IN THE CITY AND COUNTY OF NEW YORK OR IN
THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, WHICH
COURTS SHALL HAVE EXCLUSIVE JURISDICTION OVER THE ADJUDICATION OF SUCH MATTERS,
AND THE COMPANY AND XXXXXXX XXXXX CONSENT TO THE JURISDICTION OF SUCH COURTS AND
PERSONAL SERVICE WITH RESPECT THERETO. THE COMPANY HEREBY CONSENTS TO PERSONAL
JURISDICTION, SERVICE AND VENUE IN ANY COURT IN WHICH ANY CLAIM ARISING OUT OF
OR IN ANY WAY RELATING TO THIS AGREEMENT IS BROUGHT BY ANY THIRD PARTY AGAINST
XXXXXXX XXXXX OR ANY INDEMNIFIED PARTY. EACH OF XXXXXXX XXXXX AND THE COMPANY
WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING OR CLAIM (WHETHER BASED UPON
CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR IN ANY WAY RELATING TO THIS
AGREEMENT. THE COMPANY AGREES THAT A FINAL JUDGMENT IN ANY PROCEEDING OR CLAIM
ARISING OUT OF OR IN ANY WAY RELATING TO THIS AGREEMENT BROUGHT IN ANY SUCH
COURT SHALL BE CONCLUSIVE AND BINDING UPON THE COMPANY AND MAY BE ENFORCED IN
ANY OTHER COURTS TO THE JURISDICTION OF WHICH THE COMPANY IS OR MAY BE SUBJECT,
BY SUIT UPON SUCH JUDGMENT.
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The foregoing Indemnification Agreement shall remain in full force and
effect notwithstanding any termination of Xxxxxxx Xxxxx'x engagement. This
Indemnification Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which shall constitute one and the
same agreement.
Very truly yours,
DEUTSCHE INVESTMENT MANAGEMENT AMERICAS INC.
By: ______________________
Name:
Title:
Accepted and agreed to as of the date first above written:
XXXXXXX XXXXX & CO.
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX
INCORPORATED
By ______________________
Name:
Title:
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