ASSIGNMENT AND ASSUMPTION AGREEMENT
This Assignment and Assumption Agreement is entered into this 25th day of
November, 2003 by and among Aquila Management Corporation ("Former Adviser"), a
New York corporation, Tax-Free Trust of Arizona, a Massachusetts business trust
(the "Fund"), and Aquila Investment Management LLC ("New Adviser"), a Delaware
limited liability company.
WHEREAS, pursuant to an Advisory and Administration Agreement dated as of
November 6, 1997 (as from time to time amended or supplemented, the "Management
Agreement"), the Fund has retained Former Adviser to provide investment
management services to the Fund;
WHEREAS, at the time of the effectiveness of the Assignment (as defined in
numbered paragraph 1 below), New Adviser will be registered with the SEC as an
investment advisor under the Investment Advisers Act of 1940 and the rules and
regulations thereunder, as amended from time to time;
WHEREAS, both the Board of Trustees of the Fund and Former Adviser desire
that Former Adviser be replaced as the Fund's investment manager by New Adviser
in a transaction which does not result in a change of actual control or
management in accordance with Rule 2a-6 of the Investment Company Act of 1940
(the "1940 Act"); and
WHEREAS, Former Adviser desires to assign its rights, duties and
responsibilities under the Management Agreement to New Advisor, and New Advisor
wishes to assume such rights, duties and responsibilities, each subject to the
terms and conditions of this Agreement;
NOW, THEREFORE, in consideration of the mutual covenants contained herein,
the parties hereto agree as follows:
1. Assignment and Assumption. Subject to the terms and conditions contained
herein, Former Adviser hereby assigns to New Adviser all of Former Adviser's
rights, duties, and obligations under the Management Agreement (the
"Assignment") and New Adviser accepts such Assignment and hereby assumes all
such rights, duties, and obligations under the Management Agreement, together
with any other obligations of Former Adviser to the Fund. Any procedures
established from time to time by agreement between Former Adviser and the Fund
are hereby adopted by New Adviser, subject to the terms and conditions contained
herein and subject to amendment by mutual agreement of New Adviser and the Fund.
2. Term. The Assignment shall become effective at 12:01 A.M. on January 1,
2004 and shall extend for so long as the terms specified in Section 6 of the
Management Agreement are satisfied or until terminated in accordance with said
Section 6.
3. No Termination. The parties agree that the Assignment shall not
constitute an "assignment" of the Management Agreement for purposes of Section 6
of the Management Agreement or the 1940 Act, and that the Management Agreement,
as assigned by this Assignment and Assumption Agreement, shall remain in full
force and effect after the Assignment. 4. Representation and Warranty. Former
Adviser hereby represents and warrants that, immediately prior to or
simultaneously with the Assignment, Former Adviser contributed, assigned,
conveyed or otherwise transferred substantially all of its assets and
liabilities to New Adviser. For purposes of this Assignment and Assumption
Agreement, Former Adviser will be considered to have transferred a lease to New
Adviser if New Adviser is granted the right to occupy and use the leased
premises for a term co-extensive with Former Adviser's lease.
5. Guarantee. Former Adviser hereby guarantees the performance by New
Adviser of all of New Adviser's obligations under the Management Agreement and
this Assignment and Assumption Agreement, and if all or any part of the New
Adviser's obligations under the Management Agreement or this Assignment and
Assumption Agreement shall not be performed in full by New Adviser in accordance
with their terms, Former Adviser will, upon notice from Fund, perform such
obligations, without any other demand, protest or any other notice whatsoever,
from Fund or otherwise.
[The rest of this page intentionally left blank.]
IN WITNESS WHEREOF, the parties hereto have caused this Assignment and
Assumption Agreement to be executed as of the day and year first above written.
ATTEST: AQUILA MANAGEMENT
CORPORATION
/s/ Xxxx Xxxxxxxx /s/ Xxxxx X. Xxxxxxxx
____________________________ By:______________________
Name: Xxxx Xxxxxxxx Name: Xxxxx X. Xxxxxxxx
Title: President
TAX-FREE TRUST OF ARIZONA
/s/ Xxxx Xxxxxxxx /s/ Xxxxxx X. XxXxxxxx
____________________________ By:______________________
Name: Xxxx Xxxxxxxx Name: Xxxxxx X. XxXxxxxx
Title: Chief Financial Officer
and Treasurer
AQUILA INVESTMENT
MANAGEMENT LLC
/s/ Xxxx Xxxxxxxx /s/ Xxxxx X. Xxxxxxxx
____________________________ By:______________________
Name: Xxxx Xxxxxxxx Name: Xxxxx X. Xxxxxxxx
Title: President
