AGREEMENT TO
ALLOCATE RECOVERIES
UNDER FIDELITY BOND
THIS AGREEMENT is made as of September 30, 2011 by and
between Xxxxxxxxx Investment Trust, a Massachusetts business trust
(the "Trust"), Xxxxxxxxx Investment Management, Inc., a Delaware
corporation ("XXX"), and Xxxxxxxxx Securities Corporation, a
Delaware corporation ("TSC").
RECITALS
1. The Trust, XXX and TSC are insureds under a certain
Financial Institution Investment Company Asset Protection Bond,
issued by Federal Insurance Company, providing for bonding of
certain persons (the "Bond").
2. Rule 17g-1(f) under the Investment Company Act of 1940
requires that each person named as an insured in a joint insured
bond covering investment companies must enter into an agreement
providing for allocations of recoveries under the Bond.
3. The parties seek to comply with the foregoing Rule, and
further seek to provide for a fair and equitable means for
allocating among themselves any recovery under the Bond.
AGREEMENT
IN CONSIDERATION of the foregoing, and of the covenants
hereinafter set forth, the parties agree as follows:
1. Allocation of Recovery. In the event that a recovery is
received under the Bond as a result of a loss by only one party,
that recovery will be allocated to and delivered to that party.
If a recovery is received under the Bond as a result of a loss by
more than one party, and the recovery equals the
aggregate loss, the recovery will be allocated among the parties
to the extent of their respective losses. If a recovery is
received under the Bond as a result of a loss by more than one
party, and the loss exceeds the recovery, the recovery will first
be allocated to the Trust to the extent of the lesser of (i) that
party's respective loss, or (ii) the amount of minimum bonding
coverage required for that party under Rule 17g-1(d)(1) under the
Investment Company Act of 1940. Any excess of recovery after the
allocation described in the preceding
sentence will be allocated among the parties in proportion to the
parties' respective losses not reimbursed under the preceding
sentence or by other persons.
2. Term of Agreement. This Agreement shall continue so long
as the parties are named insureds under the Bond or any policy
which replaces the Bond, except that any party may terminate this
Agreement upon written notice to the other party, delivered or
mailed by certified mail, return receipt requested, at least 60
days before the termination is to become effective. No such
termination shall be effective as to any recovery for any event
occurring before the termination.
3. Additional Acts. Each party agrees with the other that
it shall perform such reasonable acts, including the delivery of
funds and the execution and delivery of instruments, agreements or
other documents, which may be necessary to effectuate the purposes
of this Agreement.
4. Applicable Law. To the extent that this Agreement is not
otherwise governed by the federal securities laws, it shall be
interpreted in accordance with the laws of the State of New
Mexico.
IN WITNESS WHEREOF, the parties have caused the execution of
this Agreement as of the date first set forth above.
XXXXXXXXX INVESTMENT TRUST
/s/ Xxxxxx Xxxxxxxxxx
---------------------------------
By: Xxxxxx Xxxxxxxxxx
Its: Vice President
XXXXXXXXX INVESTMENT MANAGEMENT, INC.
/s/ Xxxxx XxXxxxx
---------------------------------
By: Xxxxx XxXxxxx
Its: Chief Executive Officer and President
XXXXXXXXX SECURITIES CORPORATION
/s/ Xxxxx Xxxxxx
---------------------------------
By: Xxxxx Xxxxxx
Its: Vice President
