SUB-ITEM 77Q1(a)
AMENDED AND RESTATED
AGREEMENT AND DECLARATION OF TRUST
OF
AIM FLOATING RATE FUND
WHEREAS, THIS AGREEMENT AND DECLARATION OF TRUST of AIM Floating Rate Fund,
dated December 6, 1999, as previously amended, is hereby amended and restated as
of May 15, 2002, among Xxxxx X. Xxxxxx, Xxxxx X. Xxxxxxxx, Xxxxxx X. Xxxxxx,
Xxxxxx X. Xxxx, Xx., Xxxx X. Xxxxxx, Xxxx Xxxxxxxxxx, Xxxxxx X. Xxxxxx, Xxxxx
Xxxxxx-Xxxxx, Xxxxx X. Xxxxxxx, Xxxx X. Xxxxxxx and Xxxxx X. Xxxxx, as the
Trustees, and each person who becomes a Shareholder in accordance with the terms
hereinafter set forth.
NOW, THEREFORE, the Trustees do hereby declare that all money and property
contributed to the trust hereunder shall be held and managed in trust under this
Agreement for the benefit of the Shareholders as herein set forth below.
ARTICLE I
NAME, DEFINITIONS, PURPOSE AND CERTIFICATE OF TRUST
Section 1.1 Name. The name of the business trust established hereby is AIM
Floating Rate Fund, and the Trustees may transact the Trust's affairs in that
name. The Trust shall constitute a Delaware business trust in accordance with
the Delaware Act.
Section 1.2 Definitions. Whenever used herein, unless otherwise required by
the context or specifically provided:
(a) "Affiliated Person," "Company," "Person," and "Principal
Underwriter" shall have the meanings given them in the 1940 Act,
as modified by or interpreted by any applicable order or orders of
the Commission or any rules or regulations adopted or interpretive
releases of the Commission thereunder. The term "Commission" shall
have the meaning given it in the 1940 Act;
(b) "Agreement" means this Agreement and Declaration of Trust, as it
may be amended from time to time;
(c) "allocable" has the meaning specified in Section 2.5(d);
(d) "allocated" has the meaning specified in Section 2.5(d);
(e) "Bylaws" means the Bylaws referred to in Section 4.1(e), as from
time to time amended;
(f) "Class" means a portion of Shares of a Portfolio of the Trust
established in accordance with the provisions of Section 2.3(b);
(g) "Class Expenses" means expenses incurred by a particular Class in
connection with a shareholder services arrangement or a
distribution plan that is specific to such Class or any other
differing share of expenses or differing fees, in each
case pursuant to a plan adopted by the Trust pursuant to Rule
18f-3 under the 1940 Act, as such plan or Rule may be amended
from time to time;
(h) "Covered Person" means a person who is or was a Trustee, officer,
employee or agent of the Trust, or is or was serving at the
request of the Trustees as a director, trustee, partner, officer,
employee or agent of a corporation, trust, partnership, joint
venture or other enterprise;
(i) The "Delaware Act" refers to the Delaware Business Trust Act, 12
Del. C.ss.3801 et seq., as such Act may be amended from time to
time;
(j) "Exempt Merger" means a merger or consolidation of the Trust or
any Portfolio or Class with or into another Company or with and
into another Portfolio or Class or a conversion of the Trust or
any Portfolio or Class where either (A) the primary purpose of
such merger or consolidation is to change the Trust's or the
Portfolio's domicile or form of organization or (B) after giving
effect to such merger, consolidation or conversion, based on the
number of Outstanding Shares as of a date selected by the
Trustees, the Shareholders of the Trust or such Portfolio or Class
will have a majority of the outstanding shares of the surviving or
converted Company or Portfolio or Class, as the case may be;
(k) "Exempt Sale" means a sale, lease or exchange or all or
substantially all the assets of the Trust or any Portfolio to any
Person where the primary purpose of such sale is to change the
Trust's or the Portfolio's domicile or form of organization;
(l) "Exempt Termination" means the termination of the Trust or any
Portfolio or Class where, as of the date on which the Trustees
have determined to so terminate the Trust or such Portfolio or
Class, there are fewer than 100 holders of record of the Trust or
of such terminating Portfolio or Class;
(m) "fund complex" has the meaning specified in Regulation 14A under
the Securities Exchange Act of 1934, as amended from time to time;
(n) "Governing Instrument" means collectively this Agreement, the
Bylaws, all amendments to this Agreement and the Bylaws and every
resolution of the Trustees or any committee of the Trustees that
by its terms is incorporated by reference into this Agreement or
stated to constitute part of the Trust's Governing Instrument or
that is incorporated herein by Section 2.3 of this Agreement;
(o) "Majority Shareholder Vote" means "the vote of a majority of the
outstanding voting securities" (as defined in the 0000 Xxx) of the
Trust, Portfolio, or Class, as applicable;
(p) "Majority Trustee Vote" means the vote of a majority of the
Trustees;
(q) "New Class A Shares" has the meaning specified in Section 2.6(c);
(r) "New Class B Shares" has the meaning specified in Section 2.6(c);
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(s) The "1940 Act" means the Investment Company Act of 1940, as
amended from time to time;
(t) "Outstanding Shares" means Shares shown on the books of the Trust
or its transfer agent as then issued and outstanding, and includes
Shares of one Portfolio that the Trust has purchased on behalf of
another Portfolio, but excludes Shares of a Portfolio that the
Trust has redeemed or repurchased;
(u) "Portfolio" means a series of Shares of the Trust within the
meaning of Section 3804(a) of the Delaware Act established in
accordance with the provisions of Section 2.3(a);
(v) "Proportionate Interest" has the meaning specified in Section
2.5(d);
(w) "Purchasing Portfolio" has the meaning specified in Section 2.10;
(x) "Schedule A" has the meaning specified in Section 2.3(a);
(y) "Selling Portfolio" has the meaning specified in Section 2.10;
(z) "Shareholder" means a record owner of Outstanding Shares of the
Trust;
(aa) "Shares" means, as to a Portfolio or any Class thereof, the equal
proportionate transferable units of beneficial interest into
which the beneficial interest of such Portfolio or such Class
thereof shall be divided and may include fractions of Shares in
1/1000th of a Share or integral multiples thereof as well as
whole Shares;
(bb) The "Trust" means AIM Floating Rate Fund, the Delaware business
trust established hereby, and reference to the Trust, when
applicable to one or more Portfolios, shall refer to each such
Portfolio;
(cc) The "Trustees" means the Persons who have signed this Agreement
as trustees so long as they shall continue to serve as trustees
of the Trust in accordance with the terms hereof, and all other
Persons who may from time to time be duly appointed as Trustee in
accordance with the provisions of Section 3.4, or elected as
Trustee by the Shareholders, and reference herein to a Trustee or
to the Trustees shall refer to such Persons in their capacity as
Trustees hereunder; and
(dd) "Trust Property" means any and all property, real or personal,
tangible or intangible, which is owned or held by or for the
account of the Trust or any Portfolio, or by the Trustees on
behalf of the Trust or any Portfolio.
Section 1.3 Purpose. The purpose of the Trust is to conduct, operate and
carry on the business of a management investment company registered under the
1940 Act through one or more Portfolios investing primarily in securities and to
carry on such other business as the Trustees may from time to time determine
pursuant to their authority under this Agreement.
Section 1.4 Certificate of Trust. Immediately upon the execution of this
Agreement, the Trustees shall file a Certificate of Trust with respect to the
Trust in the Office of the Secretary of State of the State of Delaware pursuant
to the Delaware Act. From time to time,
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the Trustees shall cause such Certificate of Trust to be amended to reflect
changes in the composition of the Board of Trustees.
ARTICLE II
BENEFICIAL INTEREST
Section 2.1 Shares of Beneficial Interest. The Trust is authorized (A) to
issue one or more series of beneficial interests within the meaning of Section
3804(a) of the Delaware Act, which shall constitute the Trust's Portfolio(s),
and (B) to divide the Shares of any Portfolio into one or more separate and
distinct Classes. The beneficial interests of the Trust shall be divided into an
unlimited number of Shares, with par value of $0.01 per Share. All Shares issued
hereunder, including without limitation, Shares issued in connection with a
dividend or other distribution in Shares or a split or reverse split of Shares,
shall be fully paid and nonassessable.
Section 2.2 Issuance of Shares. The Trustees in their discretion may, from
time to time, without vote of the Shareholders, issue Shares, in addition to the
then issued and Outstanding Shares, to such party or parties and for such amount
and type of consideration, subject to applicable law, including cash or
securities, at such time or times and on such terms as the Trustees may deem
appropriate, and may in such manner acquire other assets (including the
acquisition of assets subject to, and in connection with, the assumption of
liabilities) and businesses. In connection with any issuance of Shares, the
Trustees may issue fractional Shares. The Trustees may from time to time divide
or combine the Shares into a greater or lesser number without thereby changing
the proportionate beneficial interests in the Trust. Contributions to the Trust
may be accepted for, and Shares shall be redeemed as, whole Shares and/or
1/1,000th of a Share or integral multiples thereof.
Section 2.3 Establishment of Portfolios and Classes.
(a) The Trust shall consist of one or more separate and distinct
Portfolios, each with an unlimited number of Shares unless
otherwise specified. The Trustees hereby establish and designate
the Portfolios listed on Schedule A attached hereto and made a
part hereof ("Schedule A"). Each additional Portfolio shall be
established by the adoption of one or more resolutions by the
Trustees. Each such resolution is hereby incorporated herein by
this reference and made a part of the Governing Instrument whether
or not expressly stated in such resolution, and shall be effective
upon the occurrence of both (i) the date stated therein (or, if no
such date is stated, upon the date of such adoption) and (ii) the
execution of an amendment either to this Agreement or to Schedule
A hereto establishing and designating such additional Portfolio or
Portfolios. The Shares of each Portfolio shall have the relative
rights and preferences provided for herein and such rights and
preferences as may be designated by the Trustees in any amendment
or modification to the Trust's Governing Instrument. The Trust
shall maintain separate and distinct records of each Portfolio and
shall hold and account for the assets belonging thereto separately
from the other Trust Property and the assets belonging to any
other Portfolio. Each Share of a Portfolio shall represent an
equal beneficial interest in the net assets belonging to that
Portfolio, except to the extent of Class Expenses and other
expenses separately allocated to Classes thereof (if any Classes
have been established) as permitted herein.
(b) The Trustees may establish one or more Classes of Shares of any
Portfolio, each with an unlimited number of Shares unless
otherwise specified. Each Class
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so established and designated shall represent a Proportionate
Interest (as defined in Section 2.5(d)) in the net assets
belonging to that Portfolio and shall have identical voting,
dividend, liquidation, and other rights and be subject to the same
terms and conditions, except that (1) Class Expenses allocated to
a Class for which such expenses were incurred shall be borne
solely by that Class, (2) other expenses, costs, charges, and
reserves allocated to a Class in accordance with Section 2.5(e)
may be borne solely by that Class, provided that the allocation of
such other expenses, costs, charges, and reserves is not
specifically required to be set forth in a plan adopted by the
Trust pursuant to Rule 18f-3 under the Act, (3) dividends declared
and payable to a Class pursuant to Section 7.1 shall reflect the
items separately allocated thereto pursuant to the preceding
clauses, (4) each Class may have separate rights to convert to
another Class, exchange rights, and similar rights, each as
determined by the Trustees, and (5) subject to Section 2.6(c),
each Class may have exclusive voting rights with respect to
matters affecting only that Class. The Trustees hereby establish
for each Portfolio listed on Schedule A the Classes listed
thereon. Each additional Class for any or all Portfolios shall be
established by the adoption of one or more resolutions by the
Trustees. Each such resolution is hereby incorporated herein by
this reference and made a part of the Governing Instrument whether
or not expressly stated in such resolution, and shall be effective
upon the occurrence of both (i) the date stated therein (or, if no
such date is stated, upon the date of such adoption) and (ii) the
execution of an amendment to this Agreement establishing and
designating such additional Class or Classes.
Section 2.4 Actions Affecting Portfolios and Classes. Subject to the right of
Shareholders, if any, to vote pursuant to Section 6.1, the Trustees shall have
full power and authority, in their sole discretion without obtaining any prior
authorization or vote of the Shareholders of any Portfolio, or Class thereof, to
establish and designate and to change in any manner any Portfolio of Shares, or
any Class or Classes thereof; to fix or change such preferences, voting powers,
rights, and privileges of any Portfolio, or Classes thereof, as the Trustees may
from time to time determine, including any change that may adversely affect a
Shareholder; to divide or combine the Shares of any Portfolio, or Classes
thereof, into a greater or lesser number; to classify or reclassify or convert
any issued Shares of any Portfolio, or Classes thereof, into one or more
Portfolios or Classes of Shares of a Portfolio; and to take such other action
with respect to the Shares as the Trustees may deem desirable. A Portfolio and
any Class thereof may issue any number of Shares but need not issue any Shares.
At any time that there are no Outstanding Shares of any particular Portfolio or
Class previously established and designated, the Trustees may abolish that
Portfolio or Class and the establishment and designation thereof.
Section 2.5 Relative Rights and Preferences. Unless the establishing resolution
or any other resolution adopted pursuant to Section 2.3 otherwise provides,
Shares of each Portfolio or Class thereof established hereunder shall have the
following relative rights and preferences:
(a) Except as set forth in paragraph (e) of this Section 2.5, each
Share of a Portfolio, regardless of Class, shall represent an
equal pro rata interest in the assets belonging to such Portfolio
and shall have identical voting, dividend, liquidation and other
rights, preferences, powers, restrictions, limitations,
qualifications and designations and terms and conditions with each
other Share of such Portfolio.
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(b) Shareholders shall have no preemptive or other right to subscribe
to any additional Shares or other securities issued by the Trust
or the Trustees, whether of the same or other Portfolio (or
Class).
(c) All consideration received by the Trust for the issue or sale of
Shares of a particular Portfolio, 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 other assets of the Trust and of
every other Portfolio and may be referred to herein as "assets
belonging to" that Portfolio. The assets belonging to a particular
Portfolio shall belong to that Portfolio for all purposes, and to
no other Portfolio, subject only to the rights of creditors of
that Portfolio. In addition, any assets, income, earnings, profits
or funds, or payments and proceeds with respect thereto, which are
not readily identifiable as belonging to any particular Portfolio
shall be allocated by the Trustees between and among one or more
of the Portfolios in such manner as the Trustees, in their sole
discretion, deem fair and equitable. Each such allocation shall be
conclusive and binding upon the Shareholders of all Portfolios
thereof for all purposes, and such assets, income, earnings,
profits, or funds, or payments and proceeds with respect thereto
shall be assets belonging to that Portfolio.
(d) Each Class of a Portfolio shall have a proportionate undivided
interest (as determined by or at the direction of, or pursuant to
authority granted by, the Trustees, consistent with industry
practice) ("Proportionate Interest") in the net assets belonging
to that Portfolio. References herein to assets, expenses, charges,
costs, and reserves "allocable" or "allocated" to a particular
Class of a Portfolio shall mean the aggregate amount of such
item(s) of the Portfolio multiplied by the Class's Proportionate
Interest.
(e) A particular Portfolio shall be charged with the liabilities of
that Portfolio, and all expenses, costs, charges and reserves
attributable to any particular Portfolio shall be borne by such
Portfolio; provided that the Trustees may, in their sole
discretion, allocate or authorize the allocation of particular
expenses, costs, charges, and/or reserves of a Portfolio to fewer
than all the Classes thereof. Class Expenses shall, in all cases,
be allocated to the Class for which such Class Expenses were
incurred. Any general liabilities, expenses, costs, charges or
reserves of the Trust (or any Portfolio) that are not readily
identifiable as chargeable to or bearable by any particular
Portfolio (or any particular Class) shall be allocated and charged
by the Trustees between or among any one or more of the Portfolios
(or Classes) in such manner as the Trustees in their sole
discretion deem fair and equitable. Each such allocation shall be
conclusive and binding upon the Shareholders of all Portfolios (or
Classes) for all purposes. Without limitation of the foregoing
provisions of this Section 2.5(e), (i) the debts, liabilities,
obligations and expenses incurred, contracted for or otherwise
existing with respect to a particular Portfolio shall be
enforceable against the assets of such Portfolio only, and not
against the assets of the Trust generally or assets belonging to
any other Portfolio, and (ii) none of the debts, liabilities,
obligations and expenses incurred, contracted for or otherwise
existing with respect to the Trust generally that have not been
allocated to a specified Portfolio, or with
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respect to any other Portfolio, shall be enforceable against the
assets of such specified Portfolio. Notice of this contractual
limitation on inter-Portfolio liabilities shall be set forth in
the Trust's Certificate of Trust described in Section 1.4, and
upon the giving of such notice in the Certificate of Trust, the
statutory provisions of Section 3804 of the Delaware Act
relating to limitations on inter-Portfolio liabilities (and the
statutory effect under Section 3804 of setting forth such
notice in the Certificate of Trust) shall become applicable to
the Trust and each Portfolio.
(f) Except as provided for in Section 2.10, Shares redeemed or
repurchased by a Portfolio or the Trust shall be deemed to be
canceled.
All references to Shares in this Agreement shall be deemed to be shares of
any or all Portfolios, or Classes thereof, as the context may require. All
provisions herein relating to the Trust shall apply equally to each Portfolio of
the Trust, and each Class thereof, except as the context otherwise requires.
Section 2.6 Additional Rights and Preferences of Class B Shares. In
addition to the relative rights and preferences set forth in Section 2.5 and all
other provisions of this Agreement relating to Shares of the Trust generally,
any Class of any Portfolio designated as Class B Shares shall have the following
rights and preferences:
(a) Subject to the provisions of paragraph (c) below, all Class B
Shares other than those purchased through the reinvestment of
dividends and distributions shall automatically convert to Class A
Shares at the end of the month which is eight (8) years after the
date on which a Shareholder's order to purchase such shares was
accepted.
(b) Subject to the provisions of paragraph (c) below, Class B Shares
purchased through the reinvestment of dividends and distributions
paid in respect of Class B Shares will be considered held in a
separate sub-account, and will automatically convert to Class A
Shares in the same proportion as any Class B Shares (other than
those in the sub-account) convert to Class A Shares. Other than
this conversion feature, the Class B Shares purchased through the
reinvestment of dividends and distributions paid in respect of
Class B Shares shall have all the rights and preferences,
restrictions, limitations as to dividends, qualifications and
terms and conditions of redemption of Class B Shares generally.
(c) If (1) the Class A Shareholders of a Portfolio approve any
increase in expenses allocated to the Class A Shares of that
Portfolio in connection with (A) a Plan of Distribution adopted
pursuant to Rule 12b-1 under the 1940 Act, (B) a non-Rule 12b-1
shareholder services plan or (C) any other plan or arrangement
whereby Classes of that Portfolio pay a different share of other
expenses, not including advisory or custodial fees or other
expenses related to the management of the Trust's assets, then (2)
the Class B Shares of that Portfolio will stop converting to the
Class A Shares unless the Class B Shareholders of that Portfolio,
voting separately, approve the increase in expenses. The Trustees
shall have sole discretion in determining whether such increase in
expenses is submitted to a vote of the Class B Shareholders.
Should such increase in expenses not be submitted to a vote of the
Class B Shareholders or, if submitted, should the Class B
Shareholders fail to approve such increase in expenses, the
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Trustees shall take such action as is necessary to: (1) create a
new class of that Portfolio (the "New Class A Shares") which shall
be identical in all material respects to the Class A Shares of
that Portfolio as they existed prior to the implementation of the
increase in expenses; and (2) ensure that the existing Class B
Shares of that Portfolio will be exchanged or converted into New
Class A Shares no later than the date such Class B Shares were
scheduled to convert to Class A Shares. If deemed advisable by the
Trustees to implement the foregoing, and at the sole discretion of
the Trustees, such action may include the exchange of all Class B
Shares of that Portfolio for a new class of that Portfolio (the
"New Class B Shares"), identical in all material respects to the
Class B Shares of that Portfolio except that the New Class B
Shares will automatically convert into the New Class A Shares.
Such exchanges or conversions shall be effected in a manner that
the Trustees reasonably believe will not be subject to federal
taxation.
Section 2.7 Investment in the Trust. Investments may be accepted by the
Trust from such Persons, at such times, on such terms, and for such
consideration, which may consist of cash or tangible or intangible property or a
combination thereof, as the Trustees from time to time may authorize. At the
Trustees' sole discretion, such investments, subject to applicable law, may be
in the form of cash or securities in which the affected Portfolio is authorized
to invest, valued as provided in applicable law. Each such investment shall be
recorded in the individual Shareholder's account in the form of full and
fractional Shares of the Trust, in such Portfolio (or Class) as the Shareholder
shall select.
Section 2.8 Personal Liability of Shareholders. As provided by applicable
law, no Shareholder of the Trust shall be personally liable for the debts,
liabilities, obligations and expenses incurred by, contracted for, or otherwise
existing with respect to, the Trust or any Portfolio (or Class) thereof. Neither
the Trust nor the Trustees, nor any officer, employee, or agent of the Trust
shall have any power to bind personally any Shareholder or to call upon any
Shareholder for the payment of any sum of money or assessment whatsoever other
than such as the Shareholder may at any time personally agree to pay by way of
subscription for any Shares or otherwise. The Shareholders shall be entitled, to
the fullest extent permitted by applicable law, to the same limitation of
personal liability as is extended under the Delaware General Corporation Law to
stockholders of private corporations for profit. Every note, bond, contract or
other undertaking issued by or on behalf of the Trust or the Trustees relating
to the Trust or to any Portfolio shall include a recitation limiting the
obligation represented thereby to the Trust and its assets or to one or more
Portfolios and the assets belonging thereto (but the omission of such a
recitation shall not operate to bind any Shareholder or Trustee of the Trust or
otherwise limit any benefits set forth in the Delaware Act that may be
applicable to such Persons).
Section 2.9 Assent to Agreement. Every Shareholder, by virtue of having
purchased a Share, shall be held to have expressly assented to, and agreed to be
bound by, the terms hereof. The death of a Shareholder during the continuance of
the Trust shall not operate to terminate the same nor entitle the representative
of any deceased Shareholder to an accounting or to take any action in court or
elsewhere against the Trust or the Trustees, but only to rights of said decedent
under the Governing Instrument.
Section 2.10 Purchases of Shares Among Portfolios. The Trust may purchase,
on behalf of any Portfolio (the "Purchasing Portfolio"), Shares of another
Portfolio (the "Selling Portfolio") or any Class thereof. Shares of the Selling
Portfolio so purchased on behalf of the
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Purchasing Portfolio shall be Outstanding Shares, and shall have all
preferences, voting powers, rights and privileges established for such Shares.
ARTICLE III
THE TRUSTEES
Section 3.1 Management of the Trust. The Trustees shall have exclusive and
absolute control over the Trust Property and over the business of the Trust to
the same extent as if the Trustees were the sole owners of the Trust Property
and business in their own right, but with such powers of delegation as may be
permitted by this Agreement. The Trustees shall have power to conduct the
business of the Trust and carry on its operations in any and all of its branches
and maintain offices both within and without the State of Delaware, in any and
all states of the United States of America, in the District of Columbia, in any
and all commonwealths, territories, dependencies, colonies, or possessions of
the United States of America, and in any and all foreign jurisdictions and to do
all such other things and execute all such instruments as they deem necessary,
proper or desirable in order to promote the interests of the Trust although such
things are not herein specifically mentioned. Any determination as to what is in
the interests of the Trust made by the Trustees in good faith shall be
conclusive. In construing the provisions of this Agreement, the presumption
shall be in favor of a grant of power to the Trustees.
The enumeration of any specific power in this Agreement shall not be
construed as limiting the aforesaid power. The powers of the Trustees may be
exercised without order of or resort to any court or other authority.
Section 3.2 Trustees. The number of Trustees shall be such number as shall
be fixed from time to time by a majority of the Trustees; provided, however,
that the number of Trustees shall in no event be less than two (2) nor more than
fifteen (15). The initial Trustees are those first identified above.
Section 3.3 Terms of Office of Trustees. The Trustees shall hold office
during the lifetime of this Trust, and until its termination as herein provided;
except that (A) any Trustee may resign his trusteeship or may retire by written
instrument signed by him and delivered to the other Trustees, which shall take
effect upon such delivery or upon such later date as is specified therein; (B)
any Trustee may be removed at any time by written instrument, signed by at least
two-thirds of the number of Trustees prior to such removal, specifying the date
when such removal shall become effective; (C) any Trustee who has died, become
physically or mentally incapacitated by reason of disease or otherwise, or is
otherwise unable to serve, may be retired by written instrument signed by a
majority of the other Trustees, specifying the date of his retirement; and (D) a
Trustee may be removed at any meeting of the Shareholders by a vote of the
Shareholders owning at least two-thirds of the Outstanding Shares.
Section 3.4 Vacancies and Appointment of Trustees. In case of the
declination to serve, death, resignation, retirement or removal of a Trustee, or
a Trustee is otherwise unable to serve, or an increase in the number of
Trustees, a vacancy shall occur. Whenever a vacancy in the Board of Trustees
shall occur, until such vacancy is filled, the other Trustees shall have all the
powers hereunder and the certification of the other Trustees of such vacancy
shall be conclusive. In the case of an existing vacancy, the remaining Trustees
may fill such vacancy by appointing such other person as they in their
discretion shall see fit, or may leave such vacancy unfilled or may reduce the
number of Trustees to not less than two (2) Trustees. Such appointment shall be
evidenced by a written instrument signed by a majority of the Trustees in
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office or by resolution of the Trustees, duly adopted, which shall be recorded
in the minutes of a meeting of the Trustees, whereupon the appointment shall
take effect.
An appointment of a Trustee may be made by the Trustees then in office in
anticipation of a vacancy to occur by reason of retirement, resignation, or
removal of a Trustee, or an increase in number of Trustees effective at a later
date, provided that said appointment shall become effective only at the time or
after the expected vacancy occurs. As soon as any Trustee appointed pursuant to
this Section 3.4 or elected by the Shareholders shall have accepted the Trust
and agreed in writing to be bound by the terms of the Agreement, the Trust
estate shall vest in the new Trustee or Trustees, together with the continuing
Trustees, without any further act or conveyance, and he shall be deemed a
Trustee hereunder.
Section 3.5 Temporary Absence of Trustee. Any Trustee may, by power of
attorney, delegate his power for a period not exceeding six months at any one
time to any other Trustee or Trustees, provided that in no case shall less than
two Trustees personally exercise the other powers hereunder except as herein
otherwise expressly provided.
Section 3.6 Effect of Death, Resignation, etc. of a Trustee. The
declination to serve, death, resignation, retirement, removal, incapacity, or
inability of the Trustees, or any one of them, shall not operate to terminate
the Trust or to revoke any existing agency created pursuant to the terms of this
Agreement.
Section 3.7 Ownership of Assets of the Trust. The assets of the Trust and
of each Portfolio thereof 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 all of the assets of the
Trust and the right to conduct any business shall at all times be considered as
vested in the Trustees on behalf of the Trust, except that the Trustees may
cause legal title to any Trust Property to be held by or in the name of the
Trust, or in the name of any Person as nominee. No Shareholder shall be deemed
to have a severable ownership in any individual asset of the Trust, or belonging
to any Portfolio, or allocable to any Class thereof, or any right of partition
or possession thereof, but each Shareholder shall have, except as otherwise
provided for herein, a proportionate undivided beneficial interest in the Trust
or in assets belonging to the Portfolio (or allocable to the Class) in which the
Shareholder holds Shares. The Shares shall be personal property giving only the
rights specifically set forth in this Agreement or the Delaware Act.
ARTICLE IV
POWERS OF THE TRUSTEES
Section 4.1 Powers. The Trustees in all instances shall act as principals,
and are and shall be free from the control of the Shareholders. The Trustees
shall have full power and authority to do any and all acts and to make and
execute any and all contracts and instruments that they may consider necessary
or appropriate in connection with the management of the Trust. Without limiting
the foregoing and subject to any applicable limitation in this Agreement or the
Bylaws of the Trust, the Trustees shall have power and authority:
(a) To invest and reinvest cash and other property, and to hold cash
or other property uninvested, without in any event being bound or
limited by any present or future law or custom in regard to
investments by Trustees, and to sell, exchange, lend, pledge,
mortgage, hypothecate, write options on and lease any or all of
the assets of the Trust;
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(b) To operate as, and to carry on the business of, an investment
company, and to exercise all the powers necessary and appropriate
to the conduct of such operations;
(c) To borrow money 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;
to endorse, guarantee, or undertake the performance of an
obligation or engagement of any other Person and to lend Trust
Property;
(d) To provide for the distribution of Shares either through a
principal underwriter in the manner hereafter provided for or by
the Trust itself, or both, or otherwise pursuant to a plan of
distribution of any kind;
(e) To adopt Bylaws not inconsistent with this Agreement providing for
the conduct of the business of the Trust and to amend and repeal
them to the extent that they do not reserve such right to the
Shareholders; such Bylaws shall be deemed incorporated and
included in this Agreement;
(f) To elect and remove such officers and appoint and terminate such
agents as they consider appropriate;
(g) To employ one or more banks, trust companies or companies that are
members of a national securities exchange or such other domestic
or foreign entities as custodians of any assets of the Trust
subject to any conditions set forth in this Agreement or in the
Bylaws;
(h) To retain one or more transfer agents and shareholder servicing
agents;
(i) To set record dates in the manner provided herein or in the
Bylaws;
(j) To delegate such authority as they consider desirable to any
officers of the Trust and to any investment adviser, manager,
administrator, custodian, underwriter or other agent or
independent contractor;
(k) To sell or exchange any or all of the assets of the Trust, subject
to the right of Shareholders, if any, to vote on such transaction
pursuant to Section 6.1;
(l) 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 and powers of attorney 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
or property as the Trustee shall deem proper;
(m) To exercise powers and rights of subscription or otherwise which
in any manner arise out of ownership of securities;
(n) To hold any security or property in a form not indicating any
trust, whether in bearer, book entry, unregistered or other
negotiable form; or either in the name of the Trust or of a
Portfolio or a custodian or a nominee or nominees, subject in
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either case to proper safeguards according to the usual practice
of Delaware business trusts or investment companies;
(o) To establish separate and distinct Portfolios with separately
defined investment objectives and policies and distinct investment
purposes in accordance with the provisions of Article II hereof
and to establish Classes of such Portfolios having relative
rights, powers and duties as they may provide consistent with this
Agreement and applicable law;
(p) Subject to the provisions of Section 3804 of the Delaware Act, to
allocate assets, liabilities and expenses of the Trust to a
particular Portfolio or to apportion the same between or among two
or more Portfolios, provided that any liabilities or expenses
incurred by a particular Portfolio shall be payable solely out of
the assets belonging to that Portfolio as provided for in Article
II hereof;
(q) To consent to or participate in any plan for the reorganization,
consolidation or merger of any corporation or concern, any
security of which is held in 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;
(r) To engage in Exempt Mergers, Exempt Sales and Exempt Terminations;
(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 declare and pay dividends and make distributions of income and
of capital gains and capital to Shareholders in the manner
hereinafter provided;
(u) To establish, from time to time, a minimum investment for
Shareholders in the Trust or in one or more Portfolios or Classes,
and to require the redemption of the Shares of any Shareholder
whose investment is less than such minimum upon giving notice to
such Shareholder;
(v) to redeem or repurchase Shares as provided for in this Agreement,
upon such terms and conditions as the Trustees shall establish;
(w) To establish one or more committees, to delegate any of the powers
of the Trustees to said committees and to adopt a committee
charter providing for such responsibilities, membership (including
Trustees, officers or other agents of the Trust therein) and any
other characteristics of said committees as the Trustees may deem
proper, each of which committees may consist of less than the
whole number of Trustees then in office, and may be empowered to
act for and bind the Trustees and the Trust, as if the acts of
such committee were the acts of all the Trustees then in office;
(x) To interpret the investment policies, practices or limitations of
any Portfolios;
(y) To establish a registered office and have a registered agent in
the State of Delaware; and
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(z) In general, to carry on any other business in connection with or
incidental to any of the foregoing powers, to do everything
necessary, suitable or proper for the accomplishment of any
purpose or the attainment of any object or the furtherance of any
power hereinbefore set forth, either alone or in association with
others, and to do every other act or thing incidental or
appurtenant to or growing out of or connected with the aforesaid
business or purposes, objects or powers.
The foregoing clauses shall be construed both as objects and powers, and
the foregoing enumeration of specific powers shall not be held to limit or
restrict in any manner 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 the applicable Portfolio, and not an action in
an individual capacity.
The Trustees shall not be limited to investing in obligations maturing
before the possible termination of the Trust.
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.
Section 4.2 Issuance, Redemption and Repurchase of Shares. The Trustees
shall have the power to issue, sell, repurchase, redeem, retire, cancel,
acquire, hold, resell, reissue, dispose of, and otherwise deal in Shares and,
subject to the provisions set forth in Articles II and VII hereof, to apply to
any such repurchase, redemption, retirement, cancellation or acquisition of
Shares any funds or property of the Trust, or any assets belonging to the
particular Portfolio or any assets allocable to the particular Class, with
respect to which such Shares are issued.
Section 4.3 Action by the Trustees. The Board of Trustees or any committee
thereof shall act by majority vote of those present at a meeting duly called
(including a meeting by telephonic or other electronic means, unless the 1940
Act requires that a particular action be taken only at a meeting of the Trustees
in person) at which a quorum required by the Bylaws is present. Any action that
may be taken by the Board of Trustees or any committee thereof by majority vote
at a meeting duly called and at which a quorum required by the Bylaws is
present, may also be taken by written consent of at least seventy-five percent
(75%) of the Trustees or members of the committee, as the case may be, without a
meeting, provided that the writing or writings are filed with the minutes of
proceedings of the Board or committee. Written consents or waivers of the
Trustees may be executed in one or more counterparts. Any written consent or
waiver may be provided and delivered to the Trust by any means by which notice
may be given to a Trustee. Subject to the requirements of this Agreement and the
1940 Act, the Trustees by Majority Trustee Vote may delegate to any Trustee or
Trustees authority to approve particular matters or take particular actions on
behalf of the Trust.
Section 4.4 Principal Transactions. 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, distributor, or transfer agent for the Trust or
with any Affiliated Person of such Person; and the Trust may employ any such
Person, or firm or Company in which such Person is an Affiliated Person, as
broker, legal counsel, registrar, investment adviser, distributor,
administrator, transfer agent, dividend
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disbursing agent, custodian, or in any capacity upon customary terms, subject in
all cases to applicable laws, rules, and regulations and orders of regulatory
authorities.
Section 4.5 Payment of Expenses by the Trust. The Trustees are authorized
to pay or cause to be paid out of the principal or income of the Trust or any
Portfolio, or partly out of the principal and partly out of income, and to
charge or allocate to, between or among such one or more of the Portfolios (or
Classes), as they deem fair, all expenses, fees, charges, taxes and liabilities
incurred or arising in connection with the Trust or Portfolio (or Class), or in
connection with the management thereof, including, but not limited to, the
Trustees' compensation and such expenses and charges for the services of the
Trust's officers, employees, investment adviser and manager, administrator,
principal underwriter, auditors, counsel, custodian, transfer agent, Shareholder
servicing agent, and such other agents or independent contractors and such other
expenses and charges as the Trustees may deem necessary or proper to incur.
Section 4.6 Trustee Compensation. The Trustees as such shall be entitled to
reasonable compensation from the Trust. They may fix the amount of their
compensation. Nothing herein shall in any way prevent the employment of any
Trustee for advisory, management, administrative, legal, accounting, investment
banking, underwriting, brokerage, or investment dealer or other services and the
payment for the same by the Trust.
Section 4.7 Independent Trustee. A Trustee who is an "Independent Trustee,"
as that term is defined in the Delaware Act, shall be deemed to be an
Independent Trustee when making any determinations or taking any action as a
Trustee.
ARTICLE V
INVESTMENT ADVISER, PRINCIPAL UNDERWRITER AND
TRANSFER AGENT
Section 5.1 Investment Adviser. The Trustees may in their discretion, from
time to time, enter into an investment advisory or management contract or
contracts with respect to the Trust or any Portfolio whereby the other party or
parties to such contract or contracts shall undertake to furnish the Trustees
with such management, investment advisory, statistical and research facilities
and services and such other facilities and services, if any, and all upon such
terms and conditions, as the Trustees may in their discretion determine.
The Trustees may authorize the investment adviser to employ, from time to
time, one or more sub-advisers to perform such of the acts and services of the
investment adviser, and upon such terms and conditions, as may be agreed upon
among the Trustees, the investment adviser and sub-adviser. Any references in
this Agreement to the investment adviser shall be deemed to include such
sub-advisers, unless the context otherwise requires.
Section 5.2 Other Service Contracts. The Trustees may authorize the
engagement of a principal underwriter, transfer agent, administrator, custodian,
and similar service providers.
Section 5.3 Parties to Contract. Any contract of the character described in
Sections 5.1 and 5.2 may be entered into with any corporation, firm,
partnership, trust or association, although one or more of the Trustees or
officers of the Trust may be an officer, director, trustee, shareholder, or
member of such other party to the contract.
Section 5.4 Miscellaneous. The fact that (i) any of the Shareholders,
Trustees or officers of the Trust is a shareholder, director, officer, partner,
trustee, employee, manager,
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adviser, principal underwriter or distributor or agent of or for any Company or
of or for any parent or affiliate of any Company, with which an advisory or
administration contract, or principal underwriter's or distributor's contract,
or transfer, shareholder servicing, custodian or other agency contract may have
been or may hereafter be made, or that any such Company, or any parent or
affiliate thereof, is a Shareholder or has an interest in the Trust, or that
(ii) any Company with which an advisory or administration contract or principal
underwriter's or distributor's contract, or transfer, shareholder servicing,
custodian, or other agency contract may have been or may hereafter be made also
has an advisory or administration contract, or principal underwriter's or
distributor's contract, or transfer, shareholder servicing, custodian or other
agency contract with one or more other companies, 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 VI
SHAREHOLDERS' VOTING POWERS, GENERAL VOTING STANDARDS AND MEETING
Section 6.1 Voting Powers and General Voting Standards. The Shareholders
shall have power to vote only to:
(a) elect Trustees, provided that a meeting of Shareholders has been
called for that purpose;
(b) approve any of the actions or transactions described in Section
6.2 of this Agreement, provided that the provisions of Section 6.2
apply to any such actions or transactions; and
(c) approve such additional matters as may be required by law or as
the Trustees, in their sole discretion, shall determine.
Until Shares are issued, the Trustees may exercise all rights of
Shareholders and may take any action required or permitted by law, this
Agreement or any of the Bylaws of the Trust to be taken by Shareholders.
On any matter submitted to a vote of the Shareholders, all Shares shall be
voted together, except when otherwise required by applicable law. In addition,
if the Trustees have determined that a matter submitted to a vote of the
Shareholders affects fewer than all Portfolios (or Classes), then only the
Shareholders of such affected Portfolio or Portfolios (or Class or Classes)
shall be entitled to vote thereon. Finally, if the Trustees have determined that
a matter submitted to a vote of the Shareholders affects the interests of one
Portfolio (or Class) differently from the interests of any other Portfolio (or
Class), each Portfolio (or Class) that is affected differently from any other
Portfolio (or Class) shall be entitled to vote separately thereon.
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.
In the case of any action or transaction set forth in Sections 6.2(a)(1)
through 6.2(a)(6), the approval, adoption, or authorization of the action or
transaction in question shall require a Majority Shareholder Vote rather than
the affirmative vote or consent of the holders of at least sixty-six and
two-thirds percent (66 2/3%) of the Outstanding Shares entitled to
15
vote thereon as provided for in Section 6.2(a) if the action or transaction in
question has previously been approved, adopted, or authorized by the affirmative
vote of two-thirds of the total number of Trustees, including two-thirds of the
Trustees who are not "interested persons" of the Trust, as that term is defined
in the 1940 Act.
The vote necessary to approve other matters shall be set forth in the
Bylaws.
Section 6.2 Voting Requirements for Certain Actions and Transactions.
(a) Notwithstanding any other provision of this Agreement, and subject
to the exceptions provided in Section 6.1, each of the following
actions and transactions shall require the affirmative vote or
consent of the holders of at least sixty-six and two-thirds
percent (66 2/3%) of the Outstanding Shares entitled to vote
thereon:
(1) the conversion of the Trust from a closed-end investment
company to an open-end investment company;
(2) the merger or consolidation of the Trust or any Portfolio or
Class with or into another Company or with and into another
Portfolio or Class, other than an Exempt Merger;
(3) the issuance by the Trust, in one transaction or in a series of
transactions, of any securities of the Trust having an
aggregate value of five percent (5%) or more of the total value
of the Outstanding Shares to any Principal Shareholder for
cash;
(4) the sale, lease or exchange of all or substantially all the
assets of the Trust or any Portfolio to any Person, other than
an Exempt Sale;
(5) the termination of the Trust or any Portfolio or Class (other
than an Exempt Termination), provided that a meeting of
Shareholders has been called for that purpose;
(6) any amendment to this Agreement that makes the Shares a
"redeemable security" as that term is defined in the 1940 Act;
(7) the removal of one or more Trustees by the Shareholders,
provided that a meeting of Shareholders has been called for
that purpose;
(8) any amendment to Article VIII of this Agreement that would have
the effect of reducing the indemnification provided thereby to
Covered Persons or to Shareholders or former Shareholders; and
(9) any amendment or alteration to, or any repeal of the provisions
of, this Article VI.
The voting requirements set forth in this Section 6.2(a) shall
be in addition to, and not in lieu of, any vote or consent of
the Shareholders otherwise required by applicable law
(including, without limitation, any separate vote by Portfolio
(or Class) that may be required by the 1940 Act or by other
applicable law) or by this Agreement.
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(b) For purposes of this Section 6.2, the term "Principal Shareholder"
shall mean any corporation, person, entity, or group (within the
meaning of Rule 13d-5 under the Securities Exchange Act of 1934,
as amended), which is the beneficial owner, directly or
indirectly, of ten percent (10%) or more of the Outstanding Shares
of the Trust and shall include any affiliate or associate, as such
terms are defined in clause (2) below, of a Principal Shareholder.
In calculating the number of Shares beneficially owned by a
Shareholder, in addition to the Shares which a corporation,
person, entity, or group beneficially owns directly, any
corporation, person, entity, or group shall be deemed to be the
beneficial owner of any Shares (1) which it has the right to
acquire pursuant to any agreement or upon exercise of conversion
rights or warrants, or otherwise or (2) which are beneficially
owned, directly or indirectly (including Shares deemed owned
through application of clause (1) above), by any other
corporation, person, entity, or group with which it or its
"affiliate" or "associate," as those terms are defined in Rule
12b-2 under the Securities Exchange Act of 1934, as amended, has
any agreement, arrangement, or understanding for the purpose of
acquiring, holding, voting, or disposing of Shares of the Trust,
or which is its "affiliate" or "associate" as so defined. In
calculating the number of Outstanding Shares of the Trust,
Outstanding Shares of the Trust shall not include Shares deemed
owned through application of clause (1) above.
ARTICLE VII
DISTRIBUTIONS, REDEMPTIONS AND REPURCHASES
Section 7.1 Distributions. The Trustees may from time to time declare and
pay dividends and make other distributions with respect to any Portfolio, or
Class thereof, which may be from income, capital gains or capital. The amount of
such dividends or distributions and the payment of them and whether they are in
cash or any other Trust Property shall be wholly in the discretion of the
Trustees. Dividends and other distributions may be paid pursuant to a standing
resolution adopted once or more often as the Trustees determine. All dividends
and other distributions on Shares of a particular Portfolio or Class shall be
distributed pro rata to the Shareholders of that Portfolio or Class, as the case
may be, in proportion to the number of Shares of that Portfolio or Class they
held on the record date established for such payment, provided that such
dividends and other distributions on Shares of a Class shall appropriately
reflect Class Expenses and other expenses allocated to that Class. The Trustees
may adopt and offer to Shareholders such dividend reinvestment plans, cash
distribution payment plans, or similar plans as the Trustees deem appropriate.
Section 7.2 Redemption of Shares by Trustees. The Trustees may, at their
option, call for the redemption of the Shares of any Person or may refuse to
transfer or issue Shares to any Person to the extent that the same is necessary
to comply with applicable law or advisable to further the purposes for which the
Trust is formed. 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 Portfolio.
Section 7.3 Periodic Repurchase Offers.
(a) The Trust shall make offers to repurchase its Shares at quarterly
intervals pursuant to Rule 23c-3 under the 1940 Act ("Offers").
The Trustees may place such conditions and limitations on
repurchase offers as may be permitted pursuant to Rule 23c-3 or by
the SEC.
17
(b) The deadline (the "request deadline") by which the Trust must
receive repurchase requests submitted by Shareholders in response
to the most recent repurchase offer shall occur in the second
month of each calendar quarter. The specific date of each request
deadline shall be established by the adoption of one or more
resolutions by the Trustees; provided, however, that if the
Trustees do not establish a specific date for a request deadline
with respect to a particular repurchase offer, the request
deadline for such repurchase offer shall be the third Friday of
the second month of the applicable calendar quarter, or the next
business day if such day is not a business day. Each such
resolution is hereby incorporated herein by this reference and
made a part of the Governing Instrument whether or not expressly
stated in such resolution, and shall be effective upon the
occurrence of the date stated therein (or, if no such date is
stated, upon the date of such adoption).
(c) The date on which the repurchase price for Shares is to be
determined (the "pricing date") shall occur no later than the
fourteenth day after a repurchase request deadline, or the next
business day if such day is not a business day.
(d) Offers may be suspended or postponed under certain circumstances,
as provided for in Rule 23c-3.
Section 7.4 Other Repurchase Offers. The Trust may, at the discretion of the
Trustees and to the extent permitted by Rule 23c-3, make discretionary
repurchase offers pursuant to Rule 23c-3.
ARTICLE VIII
LIMITATION OF LIABILITY AND INDEMNIFICATION
Section 8.1 Limitation of Liability. A Trustee or officer, when acting in
such capacity, shall not be personally liable to any person for any act,
omission or obligation of the Trust or any Trustee or officer; provided,
however, that nothing contained herein or in the Delaware Act shall protect any
Trustee or officer against any 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 with the Trust.
Section 8.2 Indemnification of Covered Persons. Every Covered Person shall
be indemnified by the Trust to the fullest extent permitted by the Delaware Act,
the Bylaws and other applicable law.
Section 8.3 Indemnification of Shareholders. In case any Shareholder or
former Shareholder of the Trust shall be held to be personally liable solely by
reason of his being or having been a Shareholder of the Trust or any Portfolio
or Class 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 a corporation or other entity,
its corporate or general successor) shall be entitled, out of the assets
belonging to the applicable Portfolio (or allocable to the applicable Class), to
be held harmless from and indemnified against all loss and expense arising from
such liability in accordance with the Bylaws and applicable law. The Trust, on
behalf of the affected Portfolio (or Class), shall upon request by the
Shareholder, assume the defense of any such claim made against the Shareholder
for any act or obligation of that Portfolio (or Class).
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ARTICLE IX
MISCELLANEOUS
Section 9.1 Trust Not a Partnership; Taxation. It is hereby expressly
declared that a trust and not a partnership is created hereby. No Trustee
hereunder shall have any power to bind personally either the Trust's officers or
any Shareholder. All persons extending credit to, contracting with or having any
claim against the Trust or the Trustees shall look only to the assets of the
appropriate Portfolio or, until the Trustees shall have established any separate
Portfolio, of the Trust for payment under such credit, contract or claim; and
neither the Shareholders, the Trustees, nor the Trust's officers nor any of the
agents of the Trustees whether past, present or future, shall be personally
liable therefor.
It is intended that the Trust, or each Portfolio if there is
more than one Portfolio, be classified for income tax purposes as an association
taxable as a corporation, and the Trustees shall do all things that they, in
their sole discretion, determine are necessary to achieve that objective,
including (if they so determine), electing such classifications on Internal
Revenue Form 8832. The Trustees, in their sole discretion and without the vote
or consent of the Shareholders, may amend this Agreement to ensure that this
objective is achieved.
Section 9.2 Trustee's Good Faith Action, Expert Advice, No Bond or Surety. 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 VIII and
to Section 9.1, the Trustees shall not be liable for errors of judgment or
mistakes of fact or law. The Trustees may take advice of counsel or other
experts with respect to the meaning and operation of this Agreement, and subject
to the provisions of Article VIII and Section 9.1, shall be under no liability
for any act or omission in accordance with such advice or for failing to follow
such advice. The Trustees shall not be required to give any bond as such, nor
any surety if a bond is obtained.
Section 9.3 Termination of Trust or Portfolio or Class.
(a) Unless terminated as provided herein, the Trust shall continue
without limitation of time. The Trust may be terminated at any
time by the Trustees by written notice to the Shareholders,
subject to the right of Shareholders, if any, to vote pursuant to
Section 6.1. Any Portfolio or Class may be terminated at any time
by the Trustees by written notice to the Shareholders of that
Portfolio or Class, subject to the right of Shareholders, if any,
to vote pursuant to Section 6.1.
(b) On termination of the Trust or any Portfolio pursuant to paragraph
(a) above,
(1) the Trust or that Portfolio thereafter shall carry on no
business except for the purpose of winding up its affairs,
(2) the Trustees shall (i) proceed to wind up the affairs of the
Trust or that Portfolio, and all powers of the Trustees under
this Agreement with respect thereto shall continue until such
affairs have been wound up, including the powers to fulfill or
discharge the contracts of the Trust or that Portfolio, (ii)
collect its assets or the assets belonging thereto, (iii) sell,
convey, assign, exchange, or otherwise dispose of all or any
part of those assets to one or more persons at public or
private sale for consideration that may consist in whole or in
part of cash, securities, or
19
other property of any kind, (iv) discharge or pay its
liabilities, and (v) do all other acts appropriate to
liquidate its business, and
(3) after paying or adequately providing for the payment of all
liabilities, and upon receipt of such releases, indemnities,
and refunding agreements as they deem necessary for their
protection, the Trustees shall distribute the remaining assets
ratably among the Shareholders of the Trust or that Portfolio.
(c) On termination of any Class pursuant to paragraph (a) above,
(1) the Trust thereafter shall no longer issue Shares of that
Class,
(2) the Trustees shall do all other acts appropriate to terminate
the Class, and
(3) the Trustees shall distribute ratably among the Shareholders of
that Class, in cash or in kind, an amount equal to the
Proportionate Interest of that Class in the net assets of the
Portfolio (after taking into account any Class Expenses or
other fees, expenses, or charges allocable thereto), and in
connection with any such distribution in cash the Trustees are
authorized to sell, convey, assign, exchange or otherwise
dispose of such assets of the Portfolio of which that Class is
a part as they deem necessary.
(d) On completion of distribution of the remaining assets pursuant to
paragraph (b)(3) above (or the Proportionate Interest of the Class
in the net assets of the Portfolio pursuant to paragraph (c)(3)
above), the Trust or the affected Portfolio (or Class) shall
terminate and the Trustees and the Trust shall be discharged from
all further liabilities and duties hereunder with respect thereto
and the rights and interests of all parties therein shall be
cancelled and discharged. On 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 of Trust
to be filed in accordance with the Delaware Act, which Certificate
may be signed by any one Trustee.
Section 9.4 Sale of Assets; Merger and Consolidation. Subject to right of
Shareholders, if any, to vote pursuant to Section 6.1, the Trustees may cause
(i) the Trust or one or more of its Portfolios to the extent consistent with
applicable law to sell all or substantially all of its assets to, or be merged
into or consolidated with, another Portfolio, business trust (or series thereof)
or Company (or series thereof), (ii) the Shares of the Trust or any Portfolio
(or Class) to be converted into beneficial interests in another business trust
(or series thereof) created pursuant to this Section 9.4, (iii) the Shares of
any Class to be converted into another Class of the same Portfolio, or (iv) the
Shares to be exchanged under or pursuant to any state or federal statute to the
extent permitted by law. In all respects not governed by statute or applicable
law, the Trustees shall have power to prescribe the procedure necessary or
appropriate to accomplish a sale of assets, merger or consolidation including
the power to create one or more separate business trusts to which all or any
part of the assets, liabilities, profits or losses of the Trust may be
transferred and to provide for the conversion of Shares of the Trust or any
Portfolio (or Class) into beneficial interests in such separate business trust
or trusts (or series or class thereof).
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Section 9.5 Filing of Copies, References, Headings. The original or a copy
of this Agreement or any amendment hereto or any supplemental agreement shall be
kept at the office of the Trust where it may be inspected by any Shareholder. In
this Agreement or in any such amendment or supplemental agreement, references to
this Agreement, and all expressions like "herein," "hereof," and "hereunder,"
shall be deemed to refer to this Agreement as amended or affected by any such
supplemental agreement. All expressions like "his," "he," and "him," shall be
deemed to include the feminine and neuter, as well as masculine, genders.
Headings are placed herein for convenience of reference only and in case of any
conflict, the text of this Agreement, rather than the headings, shall control.
This Agreement may be executed in any number of counterparts each of which shall
be deemed an original.
Section 9.6 Governing Law. The Trust and this Agreement, and the rights,
obligations and remedies of the Trustees and Shareholders hereunder, are to be
governed by and construed and administered according to the Delaware Act and the
other laws of the State of Delaware; provided, however, that there shall not be
applicable to the Trust, the Trustees, the Shareholders or this Trust Agreement
(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 or responsibilities or limitations on the indemnification, acts
or powers of trustees or other Persons, which are inconsistent with the
limitations of liabilities or authorities and powers of the Trustees or officers
of the Trust set forth or referenced in this Agreement.
The Trust shall be of the type commonly called a "business 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; provided, however, that the exercise of any
such power, privilege or action shall not otherwise violate applicable law.
Section 9.7 Amendments. Except as specifically provided in Section 6.1, the
Trustees may, without any Shareholder vote, amend this Agreement by making an
amendment to this Agreement or to Schedule A, an agreement supplemental hereto,
or an amended and restated trust instrument. Any such amendment, having been
approved by a Majority Trustee Vote, shall become effective, unless otherwise
provided by such Trustees, upon being executed by a duly authorized officer of
the Trust. A certification signed by a duly authorized officer of the Trust
setting forth an amendment to this Agreement and reciting that it was duly
adopted by the Shareholders or by the Trustees as aforesaid, or a copy of this
Agreement, as amended, executed by a majority of the Trustees, or a duly
authorized officer of the Trust, shall be conclusive evidence of such amendment
when lodged among the records of the Trust.
21
Section 9.8 Provisions in Conflict with Law. The provisions of this
Agreement are severable, and if the Trustees shall determine, with the advice of
counsel, that any of such provisions is in conflict with applicable law, the
conflicting provision shall be deemed never to have constituted a part of this
Agreement; provided, however, that such determination shall not affect any of
the remaining provisions of this Agreement or render invalid or improper any
action taken or omitted prior to such determination. If any provision of this
Agreement shall be held invalid or unenforceable in any jurisdiction, such
invalidity or unenforceability shall attach only to such provision in such
jurisdiction and shall not in any manner affect such provisions in any other
jurisdiction or any other provision of this Agreement in any jurisdiction.
Section 9.9 Shareholders' Right to Inspect Shareholder List. One or more
Persons who together and for at least six months have been Shareholders of at
least five percent (5%) of the Outstanding Shares of any Class may present to
any officer or resident agent of the Trust a written request for a list of its
Shareholders. Within twenty (20) days after such request is made, the Trust
shall prepare and have available on file at its principal office a list verified
under oath by one of its officers or its transfer agent or registrar which sets
forth the name and address of each Shareholder and the number of Shares of each
Portfolio and Class which the Shareholder holds. The rights provided for herein
shall not extend to any Person who is a beneficial owner but not also a record
owner of Shares of the Trust.
22
IN WITNESS WHEREOF, the undersigned, being all of the Trustees
of the Trust, have executed this instrument this 15th day of May, 2002.
/s/ Xxxxx X. Xxxxxx
--------------------
Xxxxx X. Xxxxxx
/s/ Xxxxx X. Xxxxxxxx
---------------------
Xxxxx X. Xxxxxxxx
/s/ Xxxxxx X. Xxxxxx
--------------------
Xxxxxx X. Xxxxxx
/s/ Xxxxxx X. Xxxx, Xx.
-----------------------
Xxxxxx X. Xxxx, Xx.
/s/ Xxxx X. Xxxxxx
------------------
Xxxx X. Xxxxxx
/s/ Xxxx Xxxxxxxxxx
-------------------
Xxxx Xxxxxxxxxx
/s/ Xxxxxx X. Xxxxxx
--------------------
Xxxxxx X. Xxxxxx
/s/ Xxxxx Xxxxxx-Xxxxx
----------------------
Xxxxx Xxxxxx-Xxxxx
/s/ Xxxxx X. Xxxxxxx
--------------------
Xxxxx X. Xxxxxxx
/s/ Xxxx X. Xxxxxxx
-------------------
Xxxx X. Xxxxxxx
/s/ Xxxxx X. Xxxxx
------------------
Xxxxx X. Xxxxx
23
SCHEDULE A
AIM FLOATING RATE FUND
PORTFOLIOS AND CLASSES THEREOF
PORTFOLIO CLASSES OF EACH PORTFOLIO
--------- -------------------------
AIM Floating Rate Fund Class B Shares
Class C Shares
A-1
