XXXXXX XXXXXXX XXXX XXXXXX MID-CAP DIVIDEND GROWTH SECURITIES
SHARES OF BENEFICIAL INTEREST
$.01 PER VALUE
UNDERWRITING AGREEMENT
----------------------
January 29, 1998
XXXX XXXXXX DISTRIBUTORS INC.
0 Xxxxx Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Dear Sirs:
1. Introductory. Xxxxxx Xxxxxxx Xxxx Xxxxxx Mid-Cap Dividend Growth
Securities, an unincorporated business trust organized under the laws of The
Commonwealth of Massachusetts (the "Fund"), proposes to sell, pursuant to the
terms of this Agreement, to you (the "Underwriter") up to 10,000,000 shares
of its shares of beneficial interest, $.01 par value, subject to increase or
decrease as provided in this Agreement. Such shares are hereinafter referred
to as the "Shares."
The Underwriter may sell such of the Shares purchased by it, as it may
elect, to dealers chosen by it (the "Selected Dealers"), at their public
offering price, for reoffering by the Selected Dealers to the public at the
public offering price.
It is proposed that Xxxx Xxxxxx InterCapital Inc. (the "Manager") will act
as investment manager for the Fund.
2. Representation and Warranties of the Fund and the Manager. (a) The Fund
represents and warrants to, and agrees with, the Underwriter that:
(i) A registration statement on Form N-1A, including a preliminary
prospectus, copies of which have heretofore been delivered to you, has
been carefully prepared by the Fund in conformity with the requirements of
the Securities Act of 1933, as amended (the "1933 Act"), and the
Investment Company Act of 1940, as amended (the "1940 Act"), and the
published rules and regulations (the "Rules and Regulations") of the
Securities and Exchange Commission (the "Commission") under such Acts, and
has been filed with the Commission under both such Acts; and the Fund has
so prepared and proposed so to file prior to the effective date under the
1933 Act of such registration statement an amendment to such registration
statement including the final form of prospectus and the statement of
additional information. Such registration statement (including all
exhibits), as finally amended and supplemented at the time such
registration statement becomes effective under the 1933 Act, and the
prospectus and statement of additional information forming part of such
registration statement, or, if different in any respect, the prospectus in
the form first filed with the Commission pursuant to Rule 497(c) under the
1933 Act, are herein respectively referred to as the "Registration
Statement" and the "Prospectus", and each preliminary prospectus is herein
referred to as a "Preliminary Prospectus." Reference to the Prospectus and
Preliminary Prospectus herein shall encompass both the prospectus and
statement of additional information.
(ii) The Commission has not issued any order preventing or suspending the
use of any Preliminary Prospectus, and, at its date of issue, each
Preliminary Prospectus conformed in all material respects with the
requirements of the 1933 Act and the Rules and Regulations thereunder and
did not include any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the
statements therein in light of the circumstances under which they were
made not misleading; and, when the Registration Statement becomes
effective under the 1933 Act and at all times subsequent thereto up to and
including the Closing Date (as herein defined). The Registration Statement
and the Prospectus and any amendments or supplements thereto, and the
Notification of Registration on Form N-8A will contain all material
statements and information required to be included therein by the 1933
Act, the 1940 Act and the Rules and Regulations thereunder and will
conform in all material respects to the requirements of the 1933 Act, the
1940 Act and the Rules and Regulations and will not include any untrue
statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein not
misleading; provided, however, that the foregoing representations,
warranties and
agreements shall not apply to information contained in or omitted from any
Preliminary Prospectus or the Registration Statement or the Prospectus or
any such amendment or supplement in reliance upon, and in conformity with,
written information furnished to the Fund by or on behalf of the
Underwriter, or by or on behalf of the Manager specifically for use in the
preparation thereof.
(iii) The Statement of Assets and Liabilities of the Fund set forth in
the Statement of Additional Information fairly presents the financial
position of the Fund as of the date indicated and has been prepared in
accordance with generally accepted accounting principles. Price Waterhouse
LLP, who have expressed their opinion on said Statement, are independent
accountants as required by the 1933 Act and Rules and Regulations
thereunder.
(iv) Subsequent to the dates as of which information is given in the
Registration Statement and Prospectus, and except as set forth or
contemplated in the Prospectus, the Fund has not incurred any material
liabilities or obligations, direct or contingent, or entered into any
material transactions not in the ordinary course of business, and there
has not been any material adverse change in the financial position of the
Fund, or any change in the authorized or outstanding shares of beneficial
interest of the Fund or any issuance of options to purchase shares of
beneficial interest of the Fund.
(v) Except as set forth in the Prospectus, there is no action, suit or
proceeding before or by any court or governmental agency or body pending,
or to the knowledge of the Fund threatened, which might result in any
material adverse change in the condition (financial or otherwise),
business or prospects of the Fund, or which would materially and adversely
affect its properties or assets.
(vi) The Fund has been duly established and is validly existing as an
unincorporated business trust under the laws of The Commonwealth of
Massachusetts, with power and authority to own its property and conduct
its business as described in the Prospectus; the Fund is duly qualified to
do business in all jurisdictions in which the conduct of its business
requires such qualification; and the Fund has no subsidiaries.
(vii) The Fund is registered with the Commission under the 1940 Act as an
open-end diversified management investment company.
(viii) The Fund has an authorized capitalization as set forth in the
Registration Statement, and all outstanding shares of beneficial interest
of the Fund conform to the description thereof in the Prospectus and are
duly and validly authorized and issued, fully paid and nonassessable; and
the Shares, upon the issuance thereof in accordance with this Agreement,
will conform to the description thereof contained in the Prospectus, and
will be duly and validly authorized and issued, fully paid and
nonassessable (although shareholders of the Fund may be liable for certain
obligations of the Fund as set forth under the caption "Additional
Information" in the Prospectus).
(ix) The Fund has full legal right, power and authority to enter into
this Agreement, and the execution and delivery of this Agreement by the
Fund, the consummation of the transactions herein contemplated and
fulfillment of the terms hereof by the Fund will be in compliance with all
applicable legal requirements to which the Fund is subject and will not
conflict with the terms or provisions of any order of the Commission, the
Declaration of Trust or By-Laws of the Fund, or any agreement or
instrument to which the Fund is a party or by which it is bound.
(x) The Fund has adopted a Plan of Distribution (the "Plan") pursuant to
Rule 12b-1 under the 1940 Act. Pursuant to Rule 12b-1, the Plan has been
approved by the Trustees of the Fund, including a majority of the Trustees
who are not interested persons of the Fund and who have no direct or
indirect financial interest in the operation of the Plan, cast in person
at a meeting called for the purpose of voting on such Plan.
(xi) The Fund has full legal right, power and authority to enter into the
Distribution Agreement, the Custodian Agreement, the Transfer Agency and
Service Agreement and the Investment Management Agreement referred to in
the Registration Statement and the execution and delivery of the
Distribution Agreement, Custodian Agreement, the Transfer Agency and
Service Agreement, Management Agreement and the Advisory Agreement, the
consummation of the transactions therein contemplated and fulfillment of
the terms thereof, will be in compliance with all applicable legal
requirements to which the Fund is subject and will not conflict with the
terms or provisions of any order of the Commission, the Declaration of
Trust or By-Laws of the Fund, or any agreement or instrument to which the
Fund is a party or by which it is bound.
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(b) The Manager represents and warrants to, and agrees with, the Fund
that:
(i) The Manager is an investment adviser registered under the Investment
Advisers Act of 1940.
(ii) The Manager has full legal right, power and authority to enter into
this Agreement and the Investment Management Agreement, and the execution
and delivery of this Agreement and the Investment Management Agreement,
the consummation of the transactions herein and therein contemplated and
the fulfillment of the terms hereof and thereof, will be in compliance
with all applicable legal requirements to which it is subject and will not
conflict with the terms or provisions of, or constitute a default under,
its articles of incorporation or by-laws or any agreement or instrument to
which it is a party or by which it is bound.
(iii) The description of the Manager in the Registration Statement is
true and correct and does not contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein not misleading; and is hereby
deemed to be furnished in writing to the Fund for the purposes of Section
2(a)(ii) hereof.
3. Purchase by, and Sale to, the Underwriter. The Fund agrees to sell to
the Underwriter, and upon the basis of the representations, warranties and
agreements herein contained, but subject to the terms and conditions of this
Agreement, the Underwriter agrees to purchase from the Fund, up to 10,000,000
Shares (which number of Shares may be increased or decreased as provided
below), at a price of $10.00 per Share. It is understood and agreed that the
Underwriter may be compensated by the Fund for its services under this
Agreement in accordance with the provisions of the Plan.
The number of Shares which the Underwriter may purchase pursuant hereto
shall, upon written agreement between the Underwriter and the Fund not later
than 10:00 a.m., New York time, on the third business day preceding the
Closing Date (the "Notification Time"), be increased or decreased to such
greater or lesser number of Shares as the Fund and the Underwriter may agree
upon, in which case the number of Shares set forth in the preceding paragraph
shall for all purposes hereof be increased or decreased to such greater or
lesser number of Shares. The Underwriter shall, in any event, be entitled and
obligated to purchase only the number of shares for which purchase orders
have been received by the Underwriter prior to the Notification Time.
The Fund is advised that the Underwriter proposes to make a public
offering of the Shares as soon after the Registration Statement shall have
become effective under the 1933 Act as it deems advisable, at the public
offering price and upon the terms and conditions set forth in the Prospectus.
4. Delivery and Payment. Delivery of the Shares or, at the election of
the Underwriter, non-negotiable share deposits receipts issued by the Xxxx
Xxxxxx Trust FSB as transfer and dividend disbursing agent, acknowledging the
deposit of the Shares ("deposit receipts") and payment therefor, shall be
made at 10:00 a.m., New York time, at the office of Xxxx Xxxxxx Distributors
Inc., Xxx Xxxxx Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, on or such
later time and date as may be agreed upon between the Underwriter and the
Fund (such date and time being herein referred to as the "Closing Date"). The
place of delivery of the payment for the shares may be varied by agreement
between the Underwriter and the Fund.
On the Closing Date, the certificates or deposit receipts for the Shares
which are subject to purchase orders received by the Underwriter prior to the
Notification Time (registered in such names and for such denominations as you
shall have requested in writing prior to the Closing Date), shall be
delivered by the Fund to the Underwriter for the account of the Underwriter,
against payment of the purchase price therefor by a wire transfer in federal
funds. Such certificates or deposit receipts shall be made available for
checking and packaging at the New York office of Xxxx Xxxxxx Distributors
Inc. on or prior to the Closing Date.
On the Closing Date, the Underwriter agrees to purchase and pay for the
Shares for which it received purchase orders prior to the Notification Time
as specified above, provided that the Underwriter shall not have any
obligation to purchase and pay for any Shares as to which purchase orders are
not in effect on the Closing Date.
The Fund agrees to calculate and report to the Underwriter daily, upon
request, the net asset value of the Fund during the first 60 days after the
Closing Date.
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5. Covenants and Agreements of the Fund. The Fund agrees with the
Underwriter that:
(i) The Fund will use its best efforts to cause the Registration
Statement to become effective under the 1933 Act, will advise the
Underwriter promptly as to the time at which the Registration Statement
becomes so effective, will advise the Underwriter promptly of the issuance
by the Commission of any stop order suspending such effectiveness of the
Registration Statement or of the institution of any proceedings for that
purpose, and will use its best efforts to prevent the issuance of any such
stop order and to obtain as soon as possible the lifting thereof, if
issued. The Fund will advise the Underwriter promptly of any request by
the Commission for any amendment of or supplement to the Registration
Statement or the Prospectus or for additional information, and will not at
any time file any amendment to the Registration Statement or supplement to
the Prospectus which shall not have been submitted to the Underwriter a
reasonable time prior to the proposed filing thereof and to which the
Underwriter shall reasonably object in writing promptly following receipt
of such amendment or supplement or which is not in compliance with the
1933 Act, the 1940 Act or the Rules and Regulations thereto.
(ii) The Fund will prepare and file with the Commission, promptly upon
the request of the Underwriter, any amendments or supplements to the
Registration Statement which in the opinion of the Underwriter may be
necessary to enable the Underwriter to continue the distribution of the
Shares and will use its best efforts to cause the same to become effective
as promptly as possible.
(iii) If at any time after the effective date under the 1933 Act of the
Registration Statement when a prospectus relating to the Shares is
required to be delivered under the 1933 Act, any event relating to or
affecting the Fund occurs as a result of which the Prospectus or any other
prospectus as then in effect would include an untrue statement of a
material fact, or omit to state any material fact necessary to make the
statements therein in light of the circumstances under which they were
made not misleading, or if it is necessary at any time to amend the
Prospectus to comply with the 1933 Act, the Fund will promptly notify the
Underwriter thereof and will prepare an amended or supplemented prospectus
which will correct such statement or omission; and, in case the
Underwriter is required to deliver a prospectus relating to the Shares
nine months or more after such effective date of the Registration
Statement, the Fund upon the request of the Underwriter will prepare
promptly such prospectus or prospectuses as may be necessary to permit
compliance with the requirements of Section 10(a)(3) of the 1933 Act.
(iv) The Fund will deliver to the Underwriter, at or before the Closing
Date, two signed copies of the Registration Statement and all amendments
thereto including all financial statements and exhibits thereto, and the
Notification of Registration on Form N-8A filed by the Fund pursuant to
the 1940 Act and will deliver to the Underwriter such number of copies of
the Registration Statement, including such financial statements but
without exhibits, and of all amendments thereto, as the Underwriter may
reasonably request. The Fund will deliver or mail to or upon the order of
the Underwriter, from time to time until the effective date under the 1933
Act of the Registration Statement, as many copies of any Preliminary
Prospectus as the Underwriter may reasonably request. The Fund will
deliver or mail to or upon the order of the Underwriter on the date of the
initial public offering, and thereafter from time to time during the
period when delivery of a prospectus relating to the Shares is required
under the 1933 Act, as many copies of the Prospectus, in final form or as
thereafter amended or supplemented as the Underwriter may reasonably
request.
(v) As soon as is practicable after the effective date under the 1933 Act
of the Registration Statement, the Fund will make generally available to
its security holders an earnings statement which will be in reasonable
detail (but which need not be audited) and will comply with Section 11(a)
of the 1933 Act, covering a period of at least twelve months beginning
after such effective date of the Registration Statement.
(vi) The Fund will cooperate with the Underwriter to enable the Shares to
be qualified for sale under the securities laws of such jurisdictions as
the Underwriter may designate and at the request of the Underwriter will
make such applications and furnish such information as may be required of
it as the issuer of the Shares for that purpose; provided, however, that
the Fund shall not be required to qualify to do business or to file a
general consent to service of process in any such jurisdiction. The Fund
will, from time to time, prepare and file such statements and reports as
are or may be required of it as the issuer of the
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Shares to continue such qualifications in effect for so long a period as
the Underwriter may reasonably request for the distribution of the Shares.
(vii) The Fund will furnish to its shareholders annual reports containing
financial statements examined by independent accountants and with
semi-annual summary financial information which may be unaudited. During
the period of one year from the date hereof, the Fund will deliver to the
Underwriter, at Xxxx Xxxxxx Distributors Inc., Xxx Xxxxx Xxxxx Xxxxxx, Xxx
Xxxx, Xxx Xxxx 00000, Attention: Law Department, (a) copies of each annual
report of the Fund to its shareholders, (b) as soon as they are available,
copies of any other reports (financial or other) which the Fund shall
publish or otherwise make available to any of its security holders as
such, and (c) as soon as they are available, copies of any reports and
financial statements furnished to or filed with the Commission.
6. Payment of Expenses.
(a) The Fund will pay its organization expenses, which, for purposes of
this Agreement shall include: all costs and expenses in connection with the
establishment of the Fund and its qualification to do business in any state,
the qualification of Shares for sale under the Blue Sky or securities laws of
the several jurisdictions (including, without limitation, filing fees); the
preparation, printing and reproduction of the Declaration of Trust and
By-Laws of the Fund, this Agreement, the Distribution Agreement, the
Investment Management Agreement, the Custodian Agreement, the Transfer Agency
and Service Agreement, the Plan and other documents in quantities sufficient
for filing under the 1933 Act, the 1940 Act and the Blue Sky or securities
laws of any jurisdiction; and filing fees and fees and disbursements of
counsel related to Blue Sky matters; all costs and expenses in connection
with printing any certificates representing the Shares; fees and
disbursements of counsel and independent accountants for the Fund and of
counsel for Trustees who are not interested persons of the Fund or the
Manager; registration fees under the 1933 Act and the 1940 Act; any taxes on
the issue and delivery of the Shares on the Closing Date to the Underwriter
and the fees of the Fund's transfer agent. The Manager will pay the
organization expenses of the Fund incurred prior to the closing date of the
initial offering of the Fund's shares whether or not the amount of any such
expense is then ascertainable. The Fund will reimburse the Manager for such
expenses not to exceed $200,000. Any balance of organization expenses not
paid by the Fund shall be paid by the Manager. In the event the transactions
contemplated hereunder are not consummated, the Manager will pay all the
organization expenses which the Fund would have paid if such transactions
were consummated. Whether or not the transactions contemplated hereunder are
consummated, the Manager will pay all expenses in connection with the
activity and travel of officers, Trustees and counsel for the Fund and the
cost of preparing and making sales presentations to the personnel of the
Manager, including costs of travel of officers and Trustees of the Fund to
locations where such presentations are made.
(b) Subject to the provisions of the Plan, the Underwriter will pay: its
internal expenses in connection with marketing and meetings, including
expenses of its own personnel and costs of travel of its personnel to the
locations where sales presentations to its personnel and to Selected Dealers
are made; all costs and expenses in connection with printing and distributing
the Registration Statement, the Prospectus and the Blue Sky Surveys in
quantities sufficient for offering and sale of the Shares by the Underwriter;
all costs in connection with the sale of Shares, including costs of
preparing, printing and distributing sales literature relating to the Shares,
all advertising and fees and expenses of public relations counsel; and fees
and expenses of legal counsel for the Underwriter (except in respect of
qualification of the Shares for sale under the Blue Sky or securities laws of
any jurisdiction).
7. Indemnification and Contribution.
(a) The Fund shall indemnify and hold harmless the Underwriter and each
person, if any, who controls the Underwriter against any loss, liability,
claim, damage or expense (including the reasonable cost of investigating or
defending any alleged loss, liability, claim, damage or expense and
reasonable counsel fees incurred in connection therewith) arising by reason
of any person acquiring any Shares, which may be based upon the 1933 Act, or
on any other statute or at common law, on the ground that the Registration
Statement or related Prospectus and Statement of Additional Information, as
from time to time amended and supplemented, or the annual or interim reports
to shareholders of the Fund, includes an untrue statement of a material fact
or omits to state a material fact required to be stated therein or necessary
in order to make the statements therein not misleading, unless such statement
or omission was made in reliance upon, and in conformity with, information
5
furnished to the Fund in connection therewith by or on behalf of the
Underwriter; provided, however, that in no case (i) is the indemnity of the
Fund in favor of the Underwriter and any such controlling persons to be
deemed to protect the Underwriter or any such controlling persons thereof
against any liability to the Fund or its security holders to which the
Underwriter or any such controlling persons would otherwise be subject by
reason of willful misfeasance, bad faith or gross negligence in the
performance of its duties or by reason of reckless disregard of its
obligations and duties under this Agreement; or (ii) is the Fund to be liable
under its indemnity agreement contained in this paragraph with respect to any
claim made against the Underwriter or any such controlling persons, unless
the Underwriter or any such controlling persons, as the case may be, shall
have notified the Fund in writing within a reasonable time after the summons
or other first legal process giving information of the nature of the claim
shall have been served upon the Underwriter or such controlling persons (or
after the Underwriter or such controlling persons shall have received notice
of such service on any designated agent), but failure to notify the Fund of
any such claim shall not relieve it from any liability which it may have to
the person against whom such action is brought otherwise than on account of
its indemnity agreement contained in this paragraph. The Fund will be
entitled to participate at its own expense in the defense, or, if it so
elects, to assume the defense, of any suit brought to enforce any such
liability, but if the Fund elects to assume the defense, such defense shall
be conducted by counsel chosen by it and satisfactory to the Underwriter or
such controlling person or persons, defendant or defendants in the suit. In
the event the Fund elects to assume the defense of any such suit and retain
such counsel, the Underwriter or such controlling person or persons,
defendant or defendants in the suit, shall bear the fees and expenses of any
additional counsel retained by them, but, in case the Fund does not elect to
assume the defense of any such suit, it will reimburse the Underwriter or
such controlling person or persons, defendant or defendants in the suit, for
the reasonable fees and expenses of any counsel retained by them. The Fund
shall promptly notify the Underwriter of the commencement of any litigation
or proceedings against it or any of its officers or trustees in connection
with the issuance or sale of the Shares.
(b) (i) The Underwriter shall indemnify and hold harmless the Fund and
each of its Trustees and officers and each person, if any, who controls
the Fund, against any loss, liability, claim, damage, or expense described
in the foregoing indemnity contained in subsection (a) of this Section,
but only with respect to statements or omissions made in reliance upon,
and in conformity with, information furnished to the Fund in writing by or
on behalf of the Underwriter for use in connection with the Registration
Statement or related Prospectus and Statement of Additional Information,
as from time to time amended, or the annual or interim reports to
shareholders.
(ii) In case any action shall be brought against the Fund or any person
to be indemnified by this subsection 7(b) in respect of which indemnity
may be sought against the Underwriter, the Underwriter shall have the
rights and duties given to the Fund, and the Fund and each person so
indemnified shall have the rights and duties given to the Underwriter by
the provisions of subsection (a) of this Section 7.
(c) If the indemnification provided for in this Section 7 is unavailable
or insufficient to hold harmless an indemnified party under subsection (a) or
(b) above in respect of any losses, claims, damages, liabilities or expenses
(or actions in respect thereof) referred to herein, then each indemnifying
party shall contribute to the amount paid or payable by such indemnified
party as a result of such losses, claims, damages, liabilities or expenses
(or actions in respect thereof) in such proportion as is appropriate to
reflect the relative benefits received by the Fund on the one hand and the
Underwriter on the other from the offering of the Shares. If, however, the
allocation provided by the immediately preceding sentence is not permitted by
applicable law, then each indemnifying party shall contribute to such amount
paid or payable by such indemnified party in such proportion as is
appropriate to reflect not only such relative benefits but also the relative
fault of the Fund on the one hand and the Underwriter on the other in
connection with the statements or omissions which resulted in such losses,
claims, damages, liabilities or expenses (or actions in respect thereof), as
well as any other relevant equitable considerations. The relative benefits
received by the Fund on the one hand and the Underwriter on the other shall
be deemed to be in the same proportion as the total net proceeds from the
offering (before deducting expenses) received by the Fund bear to the total
compensation received by the Underwriter, in each case as set forth in the
Prospectus. The relative fault shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to
information supplied by the Fund or the Underwriter and the parties'
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relative intent, knowledge, access to information and opportunity to correct
or prevent such statement or omission. The Fund and the Underwriter agree
that it would not be just and equitable if contribution were determined by
pro rata allocation or by any other method of allocation which does not take
into account the equitable considerations referred to above. The amount paid
or payable by an indemnified party as a result of the losses, claims,
damages, liabilities or expenses (or actions in respect thereof) referred to
above shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or
defending any such claim. Notwithstanding the provisions of this subsection
(c), the Underwriter shall not be required to contribute any amount in excess
of the amount by which the total price at which the Shares distributed by it
to the public were offered to the public exceeds the amount of any damages
which it has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the 0000
Xxx) shall be entitled to contribution from any person who was not guilty of
such fraudulent misrepresentation.
(d) Nothing contained in this Section 7 shall be construed to provide for
indemnification or contribution in violation of Section 17(i) of the 1940
Act.
8. Survival of Indemnities, Warranties, etc. The respective indemnities,
convenants, agreements, representations, warranties, certificates and other
statements of the Fund, the Manager and the Underwriter, as set forth in this
Agreement or made by them, pursuant to this Agreement, shall remain in full
force and effect, regardless of any investigation made by or on behalf of the
Underwriter, the Fund, the Manager, or any of their officers or trustees or
directors, or any controlling person, and shall survive delivery of and
payment for the Shares.
9. Conditions of Underwriter's Obligations. The obligations of the
Underwriter hereunder shall be subject to the accuracy of (except as
otherwise stated herein), as of the date hereof and on and as of the Closing
Date (except with respect to representations and warranties in respect of
each Preliminary Prospectus which are in each case as of its date of
issuance), the representations and warranties of the Manager and the Fund and
the compliance on and as of the Closing Date by the Fund and the Manager with
their respective covenants and agreements herein contained and other
provisions hereof to be satisfied at or prior to the Closing Date and to the
following additional conditions:
(i) Prior to the Closing Date the Registration Statement shall have
become effective under the 1933 Act and no stop order suspending the
effectiveness thereof shall have been issued and no proceedings for that
purpose shall have been initiated or, to the knowledge of the Fund or the
Underwriter, threatened by the Commission, and any request for additional
information on the part of the Commission (to be included in the
Registration Statement or the Prospectus or otherwise) shall have been
compiled with to the reasonable satisfaction of the Underwriter.
(ii) Prior to the Closing Date no event shall have occurred to cause the
Registration Statement or the Prospectus, or any amendment or supplement
thereto, to contain an untrue statement of fact which, in the opinion of
the Underwriter, is material, or omit to state a fact which, in the
opinion of the Underwriter, is material and is required to be stated
therein or is necessary to make the statements therein not misleading.
(iii) The Underwriter shall have received from Price Waterhouse LLP a
letter, dated the Closing Date, confirming that they are independent
accountants within the meaning of the 1933 Act, the 1940 Act and the Rules
and Regulations, and stating in effect that:
(a) In their opinion, the Statement of Assets and Liabilities reported
on by them and included in the Registration Statement complies as to
form in all material respects with the applicable accounting
requirements of the 1933 Act, the 1940 Act and the Rules and
Regulations; and
(b) On the basis of the procedures specified in their letter, nothing
has come to their attention which caused them to believe that, except as
set forth in or contemplated by the Prospectus, during the period from
the date on which the Fund's Registration Statement is declared
effective by the Commission under the 1933 Act to a specified date not
more than three business days prior to the delivery of such letter,
there was any change in the authorized or outstanding shares of
beneficial
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interest of the Fund or any creation of long-term debt or short-term
notes of the Fund or any decrease in the net asset value per share of
beneficial interest from that set forth in the Prospectus or that the
Fund did not have a net worth of at least $100,000.
(iv) The Underwriter shall have received from Xxxx Xxxxxx & Xxxxx LLP,
Massachusetts counsel for the Fund, an opinion or opinions, dated the
Closing Day, to the following effect:
(a) The Fund has been duly established and is validly existing in
conformity with the laws of The Commonwealth of Massachusetts as an
unincorporated business trust, has made all filings required to be made
by a business trust under the Massachusetts General Laws, and has the
power and authority to own its properties and conduct its business as
described in the Prospectus;
(b) The Fund has authorized shares of beneficial interest as set forth
in the Registration Statement, and all of the issued shares of
beneficial interest of the Fund, including the Shares, have been duly
paid and non-assessable; and the Shares conform to the description of
the shares of beneficial interest contained in the Prospectus; and
(c) As to all matters of Massachusetts law and the documents described
therein, the information set forth under the caption "Additional
Information" in the Prospectus and under the caption "Description of
Shares" in all material respects and fairly presents the information
required to be shown.
(v) The Underwriter shall have received from the General Counsel of the
Fund, an opinion or opinions, dated the Closing Date, to the following
effect:
(a) This Agreement has been duly authorized, executed and delivered by
the Fund;
(b) The Registration Statement has become effective under the 1933 Act;
to the best knowledge of such counsel, no stop order suspending the
effectiveness thereof has been issued and no proceedings for that or a
similar purpose have been instituted or are pending or contemplated by
the Commission;
(c) The notification of registration under the 1940 Act and any
amendments or supplements thereto comply as to form in all material
respects with the requirements of the 1940 Act and the rules and
regulations thereunder;
(d) The Fund is registered with the Commission under the 1940 Act as an
open-end diversified management investment company;
(e) Such counsel is familiar with all contracts filed or incorporated
by reference as exhibits to the Registration Statement and does not know
of any contracts required to be so filed or incorporated which are not
so filed or incorporated;
(f) The issuance of the Shares and the sale of the Shares in accordance
with this Agreement do not result in a breach or violation of any of the
terms or provisions of, or constitute a default under any indenture,
mortgage, deed of trust, note agreement or other agreement or instrument
know to such counsel to which the Fund is a party or by which the Fund
is bound, or the Fund's Declaration of Trust or By-Laws;
(g) The Distribution Agreement, the Custodian Agreement, the Transfer
Agency and Service Agreement, the Plan and the Investment Management
Agreement referred to in the Registration Statement have been duly
authorized, pursuant to the requirements of the laws of The Commonwealth
of Massachusetts and the 1940 Act and executed and delivered by the Fund
and each constitutes the valid and binding obligation of the Fund in
accordance with its terms;
(h) There are pending no legal or governmental proceedings know to such
counsel to which the Fund is a party or to which property of the Fund
may be subject other than as set forth in the Prospectus and, to the
best of the knowledge of such counsel, no such proceedings are
contemplated;
(i) No authorization, consent, approval, permit or license of, or
filing with, any governmental or public body is required to authorize,
or is required in connection with, the execution, delivery and
performance of this Agreement or the issuance or sale of the Shares
hereunder, except as has been
8
obtained under the 1933 Act and the 1940 Act or as may be required under
the securities or Blue Sky laws of the several states and;
(j) The Registration Statement and the Prospectus, as of the effective
date of the Registration Statement, appeared on their face to be
appropriately responsive in all material respects to the requirements of
the 1933 Act, the 1940 Act and the applicable Rules and Regulations;
such counsel does not believe that the Registration Statement or the
Prospectus, on such effective date, contained any untrue statement of
material fact or omitted to state any material fact required to be
stated therein or necessary to make the statements therein not
misleading (except that such counsel shall express no opinion as to the
financial statements); the description in the Registration Statement and
Prospectus of contracts, other documents, statutes, regulations and
governmental proceeding is accurate in all material respects and fairly
present the information required to be shown.
As to all matters of Massachusetts law, General Counsel of the Fund may
rely upon the opinion or opinions delivered pursuant to paragraph (iv) of
this Section 9.
(vi) The Underwriter shall have received an opinion, dated the Closing
Date, to the following effect:
(a) The Underwriter has been duly organized and is a validly existing
corporation under the laws of the State of Delaware; and
(b) The Underwriting Agreement has been duly authorized, executed and
delivered by the Underwriter and is a valid and legally binding
obligation of the Underwriter;
(vii) The Underwriter shall have received from Counsel of the Manager, an
opinion, dated the Closing Date, to the following effect:
(a) The Adviser has been duly organized and is a validly existing
corporation under the laws of the State of Delaware with full power and
authority to transact business as the Manager of the Fund as
contemplated by the Prospectus;
(b) The Investment Management Agreement has been duly authorized,
executed and delivered by the Manager and is a valid and legally binding
obligation of the Manager;
(c) The Manager is registered as an investment adviser under the
Investment Advisers Act of 1940, as amended, and is registered as an
investment adviser in such states as may be required for operation of
the Fund;
(d) The Manager has full legal right, power and authority to enter into
the Investment Management Agreement, and the execution and delivery of
the Investment Management Agreement, the consummation of the
transactions therein contemplated and fulfillment of the terms thereof
will not conflict with any applicable legal requirement by which the
Manager is bound, nor will they conflict with the terms or provisions
of, or constitute a default under its Certificate of Incorporation or
By-Laws or any agreement or instrument to which it is a party or by
which it is bound; and
(e) The description of the Manager in the Prospectus and Statement of
Additional Information is true and correct and does not contain any
untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary in order to make the
statement therein not misleading.
(viii) The Underwriter shall have received certificates, dated the
Closing Date, of the President or other Executive Officer competent to act
on behalf of the Underwriter and the chief financial or accounting officer
of the Fund to the effect that:
(a) No stop order suspending the effectiveness of the Registration
Statement has been issued, and, to the best of the knowledge of the
signers after reasonable investigation, no proceedings for that purpose
have been instituted or are pending or contemplated under the 1933 Act;
(b) Neither any Preliminary Prospectus, as of its date, nor the
Registration Statement nor the Prospectus, nor any amendment or
supplement thereto, as of the time when the Registration Statement
9
became effective under the 1933 Act and at all time subsequent thereto
up to the delivery of such certificate, included any untrue statement of
a material fact or omitted to state any material fact required to be
stated therein or necessary to make the statements therein not
misleading;
(c) Subsequent to the respective dates as of which information is given
in the Registration Statement and the Prospectus, the Fund has not
incurred any material liabilities or obligations, direct or contingent,
nor entered into any material transaction, not in the ordinary course of
business, and there has not been any material adverse change in the
condition (financial or otherwise), business, prospects or results of
operations of the Fund, or any change in the capitalization of the Fund;
and
(d) to the best of the knowledge of the signers after reasonable
investigation, the representations and warranties of the Fund and the
Manager, as the case may be, in this Agreement are true and correct at
and as of the Closing Date (except with respect to representations and
warranties in respect of each Preliminary Prospectus which are in each
case as of its date of issuance) and the Fund and the Manager, as the
case may be, have each complied with all the agreements and satisfied
all the conditions on their respective parts to be performed or
satisfied at or prior to the Closing Date.
(ix) The Fund and the Manager shall have furnished to the Underwriter
such additional certificates as the Underwriter may have reasonably
requested as to the accuracy, at and as of the Closing Date, of the
representations and warranties herein, as to the performance of their
obligations hereunder and as to other conditions concurrent and precedent
to the obligations of the Underwriter hereunder.
If any of the conditions hereinabove provided for in this Section shall
not have been fulfilled when and as required by this Agreement, this
Agreement may be terminated by the Underwriter by notifying the Fund of such
termination in writing or by telegram at or prior to the Closing Date, but
the Underwriter shall be entitled to waive any of such conditions.
10. Effective Date. This Agreement shall become effective at 11:00 a.m.,
New York time, on the first full business day following the effective date
under the 1933 Act of the Registration Statement, or at such earlier time
after such effective date of the Registration Statement as the Underwriter in
its discretion shall first release the Shares for offering to the public;
provided, however, that the provisions of Section 6 and 7 shall at all time
be effective. For the purpose of this Section 10, the Shares shall be deemed
to have been released to the public upon release by the underwriter of the
publication of a newspaper advertisement relating to the Shares or upon
release of telegrams or letters offering the Shares for sale to securities
dealers, whichever shall first occur.
11. Termination. This Agreement may be terminated by the Fund at any time
before it becomes effective in accordance with Section 10 by notice from the
Fund to the Underwriter and may be terminated by the Underwriter at any time
before it becomes effective in accordance with Section 10 by notice from the
Underwriter to the Fund. In the event of any termination of this Agreement
under this or any other provision of this Agreement, there shall be no
liability of any party to this Agreement to any other party, other than as
provided in Sections 6 and 7.
This Agreement may be terminated after it becomes effective by the
Underwriter by notice to the Fund (i) if at or prior to the Closing Date
trading in securities on the New York or American Stock Exchanges shall have
been suspended or minimum or maximum price shall have been established on
either exchange, or a banking moratorium shall have been declared by State of
New York or United States authorities; (ii) if at or prior to the Closing
Date there shall have been an outbreak of hostilities between the United
States and any foreign power, or of any other insurrection or armed conflict
involving the United States which, in the judgment of the Underwriter, makes
it impracticable or inadvisable to offer or sell the Shares; (iii) if there
shall have been any material adverse development or prospective development
involving particularly the business of the Fund or the transactions
contemplated by this Agreement, which in the judgment of the Underwriter,
makes it impracticable or inadvisable to offer or deliver the Shares on the
terms contemplated by the Prospectus; (iv) if there shall be any litigation,
pending or threatened, which in the judgment of the Underwriter makes it
impracticable or inadvisable to offer or deliver the Shares on the terms
contemplated by the Prospectus; or (v) if at or prior to the Closing Date
there has been a material adverse change in the levels of equity securities
prices as reflected by the recognized indices of such prices, as compared
with such levels available as of the date of this Agreement. Any such
termination shall be without liability of any party to any party except as
provided in Sections 6 and 7 hereof.
10
12. Notices. All communications hereunder shall be in writing and, if sent
to the Underwriter shall be mailed, delivered or telegraphed and confirmed to
you, at Xxxx Xxxxxx Distributors Inc., Xxx Xxxxx Xxxxx Xxxxxx, Xxx Xxxx, Xxx
Xxxx 00000, or, if sent to the Fund, shall be mailed, delivered or
telegraphed and confirmed to Xxxxxx Xxxxxxx Xxxx Xxxxxx Mid-Cap Dividend
Growth Securities, Xxx Xxxxx Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000,
Attention: General Counsel, or, if sent to the Manager shall be mailed,
delivered or telegraphed and confirmed to Xxxx Xxxxxx InterCapital Inc., Xxx
Xxxxx Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: General Counsel.
13. Successors. This Agreement shall inure to the benefit of and be
binding upon the Underwriter, the Fund, the Manager and the Adviser and their
respective successors and legal representatives. Nothing expressed or
mentioned in this Agreement is intended or shall be construed to give any
person other than the persons mentioned in the preceding sentence any legal
or equitable right, remedy or claim under or in respect of this Agreement, or
any provisions herein contained, this Agreement and all conditions and
provisions hereof being intended to be and being for the sole and exclusive
benefit of such persons and for the benefit of no other person; except that
the representations, warranties and indemnities of the Fund, the Manager and
the Adviser contained in this Agreement shall also be for the benefit of the
person or persons, if any, who control the Underwriter within the meaning of
Section 15 of the 1933 Act, their respective successors and legal
representatives, and the indemnities of the Underwriter shall also be for the
benefit of each Trustee of the Fund, each of the officers of the Fund who has
signed the Registration Statement and the Manager and the Adviser and the
person or persons, if any, who control the Fund and the Manager within the
meaning of Section 15 of the 1933 Act.
14. Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York.
15. Personal Liability. The Declaration of Trust establishing Xxxxxx
Xxxxxxx Xxxx Xxxxxx Mid-Cap Dividend Growth Securities, dated December 23,
1997, a copy of which, together with all other amendments thereto
("Declaration"), is on file in the office of The Commonwealth of
Massachusetts, provides that the name Xxxxxx Xxxxxxx Xxxx Xxxxxx Mid-Cap
Dividend Growth Securities refers to the Trustees under the Declaration
collectively as Trustees, but not as individuals or personally, and not
Trustees, shareholder, officer, employee or agent of Xxxxxx Xxxxxxx Xxxx
Xxxxxx Mid-Cap Dividend Growth Securities shall be held to any personal
liability, nor shall resort be had to their private property for the
satisfaction of any obligation or claim or otherwise, in connection with the
affairs of said Xxxxxx Xxxxxxx Xxxx Xxxxxx Mid-Cap Dividend Growth
Securities, but the Trust Estate only shall be liable.
If the foregoing correctly sets forth our understanding, please indicate
your acceptance thereof in the space provided below for that purpose in a
counterpart of this letter, whereupon this letter and your acceptance in such
counterpart shall constitute a binding agreement between us.
Very truly yours,
XXXXXX XXXXXXX XXXX XXXXXX MID-CAP
DIVIDEND GROWTH SECURITIES
By:
..................................
XXXX XXXXXX INTERCAPITAL INC.,
as Manager
By:
..................................
Accepted and delivered in New York, New York
as of the date first above written.
XXXX XXXXXX DISTRIBUTORS INC.
By:
..........................................
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