Exhibit 77Q1(e)
Xxxxxx Multi-Market Income Trust
Form N-SAR for the period ended 05/31/96
File No. 811-5689
INVESTMENT MANAGEMENT AGREEMENT
AGREEMENT made this 4th day of January, 1996, by and between
XXXXXX MULTI-MARKET INCOME TRUST, a Massachusetts business trust
(the "Fund"), and XXXXXX FINANCIAL SERVICES, INC., a Delaware
corporation (the "Adviser").
WHEREAS, the Fund is a closed-end management investment company
registered under the Investment Company Act of 1940, the shares
of beneficial interest ("Shares") of which are registered under
the Securities Act of 1933; and
WHEREAS, the Fund desires to retain the Adviser to render
investment advisory and management services, and the Adviser is
willing to render such services;
NOW THEREFORE, in consideration of the mutual covenants
hereinafter contained, it is hereby agreed by and between the
parties hereto as follows:
1. The Fund hereby employs the Adviser to act as the investment
adviser and to manage the investment and reinvestment of the
assets in accordance with the Fund's investment objectives and
policies and limitations, and to administer its affairs to the
extent requested by and subject to the supervision of the Board
of Trustees of the Fund for the period and upon the terms herein
set forth and to place orders for the purchase or sale of
portfolio securities for the Fund's account with brokers or
dealers selected by it; and in connection therewith, the Adviser
is authorized as the agent of the Fund to give instructions to
the custodian of the Fund as to the deliveries of securities and
payments of cash for the account of the Fund. In connection with
the selection of such brokers or dealers and the placing of such
orders, the Adviser is directed to seek for the Fund best
execution of orders. Subject to such policies as the Board of
Trustees of the Fund determines, the Adviser shall not be deemed
to have acted unlawfully or to have breached any duty, created by
this Agreement or otherwise, solely by reason of its having
caused the Fund to pay a broker or dealer an amount of commission
for effecting a securities transaction in excess of the amount of
commission another broker or dealer would have charged for
effecting that transaction, if the Adviser determined in good
faith that such amount of commission was reasonable in relation
to the value of the brokerage and research services provided by
such broker or dealer viewed in terms of either that particular
transaction or the Adviser's overall responsibilities with
respect to the clients of the Adviser as to which the Adviser
exercises investment discretion. The Fund recognizes that all
research services and research that the Adviser receives or
generates are available for all clients, and that the Fund and
other clients may benefit thereby. The investment of funds shall
be subject to all applicable restrictions of the Agreement and
Declaration of Trust and By-Laws of the Fund as may from time to
time be in force.
The Adviser accepts such employment and agrees during such period
to render such services, to furnish office facilities and
equipment and clerical, bookkeeping and certain administrative
services for the Fund, to permit any of its officers or employees
to serve without compensation as trustees or officers of the Fund
if elected to such positions and to assume the obligations herein
set forth for the compensation herein provided. The Adviser
shall for all purposes herein provided be deemed to be an
independent contractor and, unless otherwise expressly provided
or authorized, shall have no authority to act for or represent
the Fund in any way or otherwise be deemed an agent of the Fund.
It is understood and agreed that the Adviser, by separate
agreements with the Fund, may also serve the Fund in other
capacities.
2. For the services and facilities described in Section 1, the
Fund will pay to the Adviser at the end of each calendar month,
an investment management fee computed at an annual rate of 0.85
of 1% of the average weekly net assets. For the month and year
in which this Agreement becomes effective or terminates, there
shall be an appropriate proration on the basis of the number of
days that the Agreement is in effect during the month and year,
respectively.
3. The services of the Adviser to the Fund under this Agreement
are not to be deemed exclusive, and the Adviser shall be free to
render similar services or other services to others so long as
its services hereunder are not impaired thereby.
4. In addition to the fee of the Adviser, the Fund shall assume
and pay any expenses for services rendered by a custodian for the
safekeeping of the Fund's securities or other property, for
keeping its books of account, for any other charges of the
custodian, and for calculating the net asset value of the Fund as
provided in the prospectus of the Fund. The Adviser shall not be
required to pay and the Fund shall assume and pay the charges and
expenses of its operations, including compensation of the
trustees (other than those affiliated with the Adviser), charges
and expenses of independent auditors, of legal counsel, of any
transfer or dividend disbursing agent, any registrar of the Fund,
costs of acquiring and disposing of portfolio securities,
interest, if any, on obligations incurred by the Fund, costs of
share certificates and of reports, membership dues in the
Investment Company Institute or any similar organization, reports
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and notices to shareholders, other like miscellaneous expenses
and all taxes and fees payable to federal, state or other
governmental agencies on account of the registration of
securities issued by the Fund, filing of trust documents or
otherwise. The Fund shall not pay or incur any obligation for
any expenses for which the Fund intends to seek reimbursement
from the Adviser as herein provided without first obtaining the
written approval of the Adviser. The Adviser shall arrange, if
desired by the Fund, for officers or employees of the Adviser to
serve, without compensation from the Fund, as trustees, officers
or agents of the Fund if duly elected or appointed to such
positions and subject to their individual consent and to any
limitations imposed by law.
The net asset value of the Fund shall be calculated in accordance
with the provisions of the Fund's prospectus or at such other
time or times as the trustees may determine in accordance with
the provisions of the Investment Company Act of 1940. On each
day when net asset value is not calculated, the net asset value
shall be deemed to be the net asset value as of the close of
business on the last day on which such calculation was made for
the purpose of the foregoing computations.
5. Subject to applicable statutes and regulations, it is
understood that trustees, officers or agents of the Fund are or
may be interested in the Adviser as officers, directors, agents,
shareholders or otherwise, and that the officers, directors,
shareholders and agents of the Adviser may be interested in the
Fund otherwise than as a trustee, officer or agent.
6. The Adviser shall not be liable for any error of judgment or
of law or for any loss suffered by the Fund in connection with
the matters to which this Agreement relates, except loss
resulting from willful misfeasance, bad faith or gross negligence
on the part of the Adviser in the performance of its obligations
and duties or by reason of its reckless disregard of its
obligations and duties under this Agreement.
7. This Agreement shall become effective on the date hereof and
shall remain in full force until April 1, 1996, unless sooner
terminated as hereinafter provided. This Agreement shall
continue in force from year to year thereafter, but only as long
as such continuance is specifically approved at least annually in
the manner required by the Investment Company Act of 1940 and the
rules and regulations thereunder; provided, however, that if the
continuation of this Agreement is not approved, the Adviser may
continue to serve in such capacity in the manner and to the
extent permitted by the Investment Company Act of 1940 and the
rules and regulations thereunder.
This Agreement shall automatically terminate in the event of its
assignment and may be terminated at any time without the payment
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of any penalty by the Fund or by the Adviser on sixty (60) days
written notice to the other party. The Fund may effect
termination by action of the Board of Trustees or by vote of a
majority of the outstanding voting securities.
This Agreement may be terminated at any time without the payment
of any penalty by the Board of Trustees or by vote of a majority
of the outstanding voting securities in the event that it shall
have been established by a court of competent jurisdiction that
the Adviser or any officer or director of the Adviser has taken
any action which results in a breach of the covenants of the
Adviser set forth herein.
The terms "assignment" and "vote" of a majority of the
outstanding voting securities shall have the meanings set forth
in the Investment Company Act of 1940 and the rules and
regulations thereunder.
Termination of this Agreement shall not affect the right of the
Adviser to receive payments on any unpaid balance of the
compensation described in Section 2 earned prior to such
termination.
8. If any provision of this Agreement shall be held or made
invalid by a court decision, statute, rule or otherwise, the
remainder shall not be thereby affected.
9. Any notice under this Agreement shall be in writing,
addressed and delivered or mailed, postage prepaid, to the other
party at such address as such other party may designate for the
receipt of such notice.
10. All parties hereto are expressly put on notice of the Fund's
Agreement and Declaration of Trust and all amendments thereto,
all of which are on file with the Secretary of The Commonwealth
of Massachusetts, and the limitation of shareholder and trustee
liability contained therein. This Agreement has been executed by
and on behalf of the Fund by its representatives as such
representatives and not individually, and the obligations of the
Fund hereunder are not binding upon any of the trustees, officers
or shareholders of the Fund individually but are binding upon
only the assets and property of the Fund.
11. This Agreement shall be construed in accordance with
applicable federal law and except as to Section 10 hereof which
shall be construed in accordance with the laws of The
Commonwealth of Massachusetts) the laws of the State of Illinois.
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12. This Agreement is the entire contract between the parties
relating to the subject matter hereof and supersedes all prior
agreements between the parties relating to the subject matter
hereof.
IN WITNESS WHEREOF, the Fund and the Adviser have caused
this Agreement to be executed as of the day and year first above
written.
XXXXXX MULTI-MARKET INCOME TRUST
By: /s/ Xxxx X. Xxxxxx
-----------------------------
Title: Vice President
ATTEST:
By: /s/ Xxxxxx X. Xxxxxxx
---------------------------
Title: Secretary
XXXXXX FINANCIAL SERVICES, INC.
By: /s/ Xxxxxxx Xxxxxxx
-----------------------------
Title: Senior Vice President
ATTEST:
By: /s/ Xxxxx X. Xxxxxxxxxxx
----------------------------
Title: Assistant Secretary
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