Exhibit 77(q)(1)(g)(1)
AGREEMENT AND PLAN OF REORGANIZATION
THIS AGREEMENT AND PLAN OF REORGANIZATION (the "Agreement") is made as of this
21st day of July, 2005, by and between ING Investors Trust, a Massachusetts
business trust with its principal place of business at 0000 Xxxx Xxxxxxxxxx
Xxxxx Xxxx, Xxxxxxxxxx, Xxxxxxx 00000-0000 (the "Trust"), on behalf of its
series, ING JPMorgan Emerging Markets Equity Portfolio (the "Acquiring
Portfolio"), and ING VP Emerging Markets Fund, Inc., a Maryland corporation with
its principal place of business at 0000 Xxxx Xxxxxxxxxx Xxxxx Xxxx, Xxxxxxxxxx,
Xxxxxxx 00000-0000 (the "Acquired Portfolio").
This Agreement is intended to be and is adopted as a plan of reorganization
and liquidation within the meaning of Section 368(a)(1) of the United States
Internal Revenue Code of 1986, as amended (the "Code"). The reorganization (the
"Reorganization") will consist of the transfer of all of the assets of the
Acquired Portfolio to the Acquiring Portfolio in exchange solely for Class I
voting shares of beneficial interest of the Acquiring Portfolio (the "Acquiring
Portfolio Shares"), the assumption by the Acquiring Portfolio of the liabilities
of the Acquired Portfolio described in paragraph 1.3, and the distribution of
the Acquiring Portfolio Shares to the shareholders of the Acquired Portfolio in
complete liquidation of the Acquired Portfolio as provided herein, all upon the
terms and conditions hereinafter set forth in this Agreement.
WHEREAS, the Acquired Portfolio and the Acquiring Portfolio are series of
open-end, registered investment companies of the management type and the
Acquired Portfolio owns securities which generally are assets of the character
in which the Acquiring Portfolio is permitted to invest; and
WHEREAS, the Board of Trustees of the Trust has determined that the
exchange of all of the assets of the Acquired Portfolio for Acquiring Portfolio
Shares and the assumption of the liabilities of the Acquired Portfolio, as
described in paragraph 1.3 herein, by the Acquiring Portfolio is in the best
interests of the Acquiring Portfolio and its shareholders and that the interests
of the existing shareholders of the Acquiring Portfolio would not be diluted as
a result of this transaction; and
WHEREAS, the Board of Directors of the Acquired Portfolio has determined
that the exchange of all of the assets of the Acquired Portfolio for Acquiring
Portfolio Shares and the assumption of the liabilities of the Acquired
Portfolio, as described in paragraph 1.3 herein, by the Acquiring Portfolio is
in the best interests of the Acquired Portfolio and its shareholders and that
the interests of the existing shareholders of the Acquired Portfolio would not
be diluted as a result of this transaction.
NOW, THEREFORE, in consideration of the premises and of the covenants and
agreements hereinafter set forth, the parties hereto covenant and agree as
follows:
1. TRANSFER OF ASSETS OF THE ACQUIRED PORTFOLIO TO THE ACQUIRING PORTFOLIO IN
EXCHANGE FOR THE ACQUIRING PORTFOLIO SHARES, THE ASSUMPTION OF ACQUIRED
PORTFOLIO LIABILITIES AND THE LIQUIDATION OF THE ACQUIRED PORTFOLIO
1.1. Subject to the requisite approval of the Acquired Portfolio
shareholders and the other terms and conditions herein set forth and on the
basis of the representations and warranties contained herein, the Acquired
Portfolio agrees to transfer all of the Acquired Portfolio's assets, as set
forth in paragraph 1.2, to the Acquiring Portfolio, and the Acquiring Portfolio
agrees in exchange therefor: (i) to deliver to the Acquired Portfolio the number
of full and fractional Class I Acquiring Portfolio Shares determined by dividing
the value of the Acquired Portfolio's net assets with respect to its sole
existing class ("Class I"), computed in the manner and as of the time and date
set forth in paragraph 2.1, by the net asset value of one Acquiring Portfolio
Share of the same class, computed in the manner and as of the time and date set
forth in paragraph 2.2; and (ii) to assume the liabilities of the Acquired
Portfolio, as set forth in paragraph 1.3. Such transactions shall take place at
the closing provided for in paragraph 3.1 (the "Closing").
1.2. The assets of the Acquired Portfolio to be acquired by the Acquiring
Portfolio shall consist of all assets and property, including, without
limitation, all cash, securities, commodities and futures interests and
dividends or interests receivable that are owned by the Acquired Portfolio and
any deferred or prepaid expenses shown as an asset on the books of the Acquired
Portfolio on the closing date provided for in paragraph 3.1 (the "Closing Date")
(collectively, "Assets").
1.3. The Acquired Portfolio will endeavor to discharge all of its known
liabilities and obligations prior to the Closing Date. The Acquiring Portfolio
shall assume the liabilities of the Acquired Portfolio set forth in the Acquired
Portfolio's Statement of Assets and Liabilities as of the Closing Date delivered
by the Acquired Portfolio, to the Trust, on behalf of the Acquiring Portfolio,
pursuant to paragraph 7.2 hereof. On or as soon as practicable prior to the
Closing Date, the Acquired Portfolio will declare and pay to its shareholders of
record one or more dividends and/or other distributions so
that it will have distributed substantially all (and in no event less than 98%)
of its investment company taxable income (computed without regard to any
deduction for dividends paid) and realized net capital gain, if any, for the
current taxable year through the Closing Date.
1.4. Immediately after the transfer of assets provided for in paragraph
1.1, the Acquired Portfolio will distribute to the Acquired Portfolio's
shareholders of record with respect to Class I of its shares, determined as of
immediately after the close of business on the Closing Date (the "Acquired
Portfolio Shareholders"), on a pro rata basis within that class, the Acquiring
Portfolio Shares of Class I received by the Acquired Portfolio pursuant to
paragraph 1.1, and will completely liquidate. Such distribution and liquidation
will be accomplished, with respect to the Acquired Portfolio's Class I shares,
by the transfer of the Acquiring Portfolio Shares then credited to the account
of the Acquired Portfolio on the books of the Acquiring Portfolio to open
accounts on the share records of the Acquiring Portfolio in the names of the
Acquired Portfolio Shareholders. The aggregate net asset value of Class I
Acquiring Portfolio Shares to be so credited to Class I Acquired Portfolio
Shareholders shall, with respect to each class, be equal to the aggregate net
asset value of the Acquired Portfolio shares of that same class owned by such
shareholders on the Closing Date. All issued and outstanding shares of the
Acquired Portfolio will simultaneously be canceled on the books of the Acquired
Portfolio, although share certificates representing interests in Class I shares
of the Acquired Portfolio will represent a number of the same class of Acquiring
Portfolio Shares after the Closing Date, as determined in accordance with
Section 2.3. The Acquiring Portfolio shall not issue certificates representing
the Class I Acquiring Portfolio Shares in connection with such exchange.
1.5. Ownership of Acquiring Portfolio Shares will be shown on the books of
the Acquiring Portfolio's transfer agent, as defined in paragraph 3.3.
1.6. Any reporting responsibility of the Acquired Portfolio including, but
not limited to, the responsibility for filing of regulatory reports, tax
returns, or other documents with the U.S. Securities and Exchange Commission
(the "Commission"), any state securities commission, and any federal, state or
local tax authorities or any other relevant regulatory authority, is and shall
remain the responsibility of the Acquired Portfolio.
2. VALUATION
2.1. The value of the Assets shall be the value computed as of immediately
after the close of business of the New York Stock Exchange and after the
declaration of any dividends on the Closing Date (such time and date being
hereinafter called the "Valuation Date"), using the valuation procedures in the
then-current prospectus and statement of additional information with respect to
the Acquiring Portfolio, and valuation procedures established by the Acquiring
Portfolio's Board of Trustees.
2.2. The net asset value of a Class I Acquiring Portfolio Share shall be
the net asset value per share computed with respect to that class as of the
Valuation Date, using the valuation procedures set forth in the Acquiring
Portfolio's then-current prospectus and statement of additional information and
valuation procedures established by the Acquiring Portfolio's Board of Trustees.
2.3. The number of the Class I Acquiring Portfolio Shares to be issued
(including fractional shares, if any) in exchange for the Acquired Portfolio's
assets shall be determined by dividing the value of the net assets with respect
to the Class I shares of the Acquired Portfolio, determined using the same
valuation procedures referred to in paragraph 2.1, by the net asset value of an
Acquiring Portfolio Share, determined in accordance with paragraph 2.2.
2.4. All computations of value shall be made by the Acquired Portfolio's
designated record keeping agent and shall be subject to review by Acquiring
Portfolio's record keeping agent and by each Portfolio's respective independent
accountants.
3. CLOSING AND CLOSING DATE
3.1. The Closing Date shall be December 3, 2005, or such other date as the
parties may agree. All acts taking place at the Closing shall be deemed to take
place simultaneously as of immediately after the close of business on the
Closing Date unless otherwise agreed to by the parties. The close of business on
the Closing Date shall be as of 4:00p.m., Eastern Time. The Closing shall be
held at the offices of the Acquiring Portfolio or at such other time and/or
place as the parties may agree.
3.2. The Acquired Portfolio shall direct the Bank of New York Company,
Inc. , as custodian for the Acquired Portfolio (the "Custodian"), to deliver, at
the Closing, a certificate of an authorized officer stating that (i) the Assets
shall
have been delivered in proper form to the Acquiring Portfolio within two
business days prior to or on the Closing Date; and (ii) all necessary taxes in
connection with the delivery of the Assets, including all applicable federal and
state stock transfer stamps, if any, have been paid or provision for payment has
been made. The Acquired Portfolio's portfolio securities represented by a
certificate or other written instrument shall be presented for examination by
the Custodian to the custodian for the Acquiring Portfolio no later than five
business days preceding the Closing Date, and shall be transferred and delivered
by the Acquired Portfolio as of the Closing Date for the account of the
Acquiring Portfolio duly endorsed in proper form for transfer in such condition
as to constitute good delivery thereof. The Custodian shall deliver as of the
Closing Date by book entry, in accordance with the customary practices of the
Custodian and any securities depository (as defined in Rule 17f-4 under the
Investment Company Act of 1940, as amended (the "1940 Act")) in which the
Acquired Portfolio's Assets are deposited, the Acquired Portfolio's portfolio
securities and instruments deposited with such depositories. The cash to be
transferred by the Acquired Portfolio shall be delivered by wire transfer of
federal funds on the Closing Date.
3.3. The Acquired Portfolio shall direct DST Systems, Inc. (the "Transfer
Agent"), on behalf of the Acquired Portfolio, to deliver at the Closing a
certificate of an authorized officer stating that its records contain the names
and addresses of the Acquired Portfolio Shareholders and the number and
percentage ownership of outstanding Class I shares owned by each such
shareholder immediately prior to the Closing. The Acquiring Portfolio shall
issue and deliver a confirmation evidencing the Acquiring Portfolio Shares to be
credited on the Closing Date to the Secretary of the Acquiring Portfolio, or
provide evidence satisfactory to the Acquired Portfolio that such Acquiring
Portfolio Shares have been credited to the Acquired Portfolio's account on the
books of the Acquiring Portfolio. At the Closing, each party shall deliver to
the other such bills of sale, checks, assignments, share certificates, if any,
receipts or other documents as such other party or its counsel may reasonably
request.
3.4. In the event that on the Valuation Date (a) the New York Stock
Exchange or another primary trading market for portfolio securities of the
Acquiring Portfolio or the Acquired Portfolio shall be closed to trading or
trading thereupon shall be restricted, or (b) trading or the reporting of
trading on such Exchange or elsewhere shall be disrupted so that, in the
judgment of the Board of Trustees of the Acquired Portfolio or the Board of
Directors of the Acquiring Portfolio, accurate appraisal of the value of the net
assets of the Acquiring Portfolio or the Acquired Portfolio is impracticable,
the Closing Date shall be postponed until the first business day after the day
when trading shall have been fully resumed and reporting shall have been
restored.
4. REPRESENTATIONS AND WARRANTIES
4.1. Except as has been disclosed to the Acquiring Portfolio in a written
instrument executed by an officer of the Acquired Portfolio, the Acquired
Portfolio represents and warrants to the Trust as follows:
(a) The Acquired Portfolio is a corporation duly organized, validly
existing and in good standing under the laws of the State of Maryland, with
power under its Articles of Incorporation to own all of its properties and
assets and to carry on its business as it is now being conducted;
(b) The Acquired Portfolio is a registered investment company
classified as a management company of the open-end type, and its registration
with the Commission as an investment company under the 1940 Act, and the
registration of its shares under the Securities Act of 1933, as amended ("1933
Act"), is in full force and effect;
(c) No consent, approval, authorization, or order of any court or
governmental authority is required for the consummation by the Acquired
Portfolio of the transactions contemplated herein, except such as have been
obtained under the 1933 Act, the Securities Exchange Act of 1934, as amended
(the "1934 Act") and the 1940 Act and such as may be required by state
securities laws;
(d) The current prospectus and statement of additional information of
the Acquired Portfolio and each prospectus and statement of additional
information of the Acquired Portfolio used during the three years previous to
the date of this Agreement conforms or conformed at the time of its use in all
material respects to the applicable requirements of the 1933 Act and the 1940
Act and the rules and regulations of the Commission thereunder and does not, or
did not at the time of its use, include any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were
made, not materially misleading;
(e) On the Closing Date, the Acquired Portfolio will have good and
marketable title to the Assets and full right, power, and authority to sell,
assign, transfer and deliver such Assets hereunder free of any liens or other
encumbrances, and upon delivery and payment for such Assets, the Acquiring
Portfolio will acquire good and marketable
title thereto, subject to no restrictions on the full transfer thereof,
including such restrictions as might arise under the 1933 Act, other than as
disclosed to the Acquiring Portfolio;
(f) The Acquired Portfolio is not engaged currently, and the
execution, delivery and performance of this Agreement will not result, in (i) a
material violation of the Acquired Portfolio's Articles of Incorporation or
By-Laws or of any agreement, indenture, instrument, contract, lease or other
undertaking to which the Acquired Portfolio is a party or by which it is bound;
or (ii) the acceleration of any obligation, or the imposition of any penalty,
under any agreement, indenture, instrument, contract, lease, judgment or decree
to which the Acquired Portfolio is a party or by which it is bound;
(g) All material contracts or other commitments of the Acquired
Portfolio (other than this Agreement and certain investment contracts including
options, futures and forward contracts) will terminate without liability to the
Acquired Portfolio prior to the Closing Date;
(h) Except as otherwise disclosed in writing to and accepted by the
Trust, on behalf of the Acquiring Portfolio, no litigation or administrative
proceeding or investigation of or before any court or governmental body is
presently pending or, to its knowledge, threatened against the Acquired
Portfolio or any of its properties or assets that, if adversely determined,
would materially and adversely affect its financial condition or the conduct of
its business. The Acquired Portfolio knows of no facts which might form the
basis for the institution of such proceedings and is not a party to or subject
to the provisions of any order, decree or judgment of any court or governmental
body which materially and adversely affects its business or its ability to
consummate the transactions herein contemplated;
(i) The Statement of Assets and Liabilities, Statements of Operations
and Changes in Net Assets, and Schedule of Investments of the Acquired Portfolio
at December 31, 2004 have been audited by KPMG LLP, an independent registered
public accounting firm, and are in accordance with generally accepted accounting
principles ("GAAP") consistently applied, and such statements (copies of which
have been furnished to the Acquiring Portfolio) present fairly, in all material
respects, the financial condition of the Acquired Portfolio as of such date in
accordance with GAAP, and there are no known contingent liabilities of the
Acquired Portfolio required to be reflected on a balance sheet (including the
notes thereto) in accordance with GAAP as of such date not disclosed therein;
(j) Since December 31, 2004 there has not been any material adverse
change in the Acquired Portfolio's financial condition, assets, liabilities or
business, other than changes occurring in the ordinary course of business, or
any incurrence by the Acquired Portfolio of indebtedness maturing more than one
year from the date such indebtedness was incurred, except as otherwise disclosed
to and accepted by the Acquiring Portfolio (For the purposes of this
subparagraph (j), a decline in net asset value per share of the Acquired
Portfolio due to declines in market values of securities in the Acquired
Portfolio's portfolio, the discharge of Acquired Portfolio liabilities, or the
redemption of Acquired Portfolio Shares by shareholders of the Acquired
Portfolio shall not constitute a material adverse change);
(k) On the Closing Date, all Federal and other tax returns, dividend
reporting forms, and other tax-related reports of the Acquired Portfolio
required by law to have been filed by such date (including any extensions) shall
have been filed and are or will be correct in all material respects, and all
Federal and other taxes shown as due or required to be shown as due on said
returns and reports shall have been paid or provision shall have been made for
the payment thereof, and to the best of the Acquired Portfolio's knowledge, no
such return is currently under audit and no assessment has been asserted with
respect to such returns;
(1) For each taxable year of its operation (including the taxable year
ending on the Closing Date), the Acquired Portfolio has met (or will meet) the
requirements of Subchapter M of the Code for qualification as a regulated
investment company, has been (or will be) eligible to and has computed (or will
compute) its federal income tax under Section 852 of the Code, and will have
distributed all of its investment company taxable income and net capital gain
(as defined in the Code) that has accrued through the Closing Date, and before
the Closing Date will have declared dividends sufficient to distribute all of
its investment company taxable income and net capital gain for the period ending
on the Closing Date;
(m) All issued and outstanding shares of the Acquired Portfolio are,
and on the Closing Date will be, duly and validly issued and outstanding, fully
paid and non-assessable (recognizing that, under Massachusetts law, it is
theoretically possible that shareholders of the Acquiring Portfolio could, under
certain circumstances, be held personally liable for obligations of the
Acquiring Portfolio) and have been offered and sold in every state and the
District of Columbia in compliance in all material respects with applicable
registration requirements of the 1933 Act and state securities laws. All of the
issued and outstanding shares of the Acquired Portfolio will, at the time of
Closing, be held by the persons and in the amounts set forth in the records of
the Transfer Agent, on behalf of the Acquired Portfolio, as provided in
paragraph
3.3. The Acquired Portfolio does not have outstanding any options, warrants or
other rights to subscribe for or purchase any of the shares of the Acquired
Portfolio, nor is there outstanding any security convertible into any of the
Acquired Portfolio shares;
(n) The execution, delivery and performance of this Agreement will
have been duly authorized prior to the Closing Date by all necessary action, if
any, on the part of the Directors of the Acquired Portfolio, and, subject to the
approval of the shareholders of the Acquired Portfolio, this Agreement will
constitute a valid and binding obligation of the Acquired Portfolio, enforceable
in accordance with its terms, subject, as to enforcement, to bankruptcy,
insolvency, reorganization, moratorium and other laws relating to or affecting
creditors' rights and to general equity principles;
(o) The information to be furnished by the Acquired Portfolio for use
in registration statements, proxy materials and other documents filed or to be
filed with any federal, state or local regulatory authority (including the
National Association of Securities Dealers, Inc.), which may be necessary in
complete in all material respects and shall comply in all material respects with
Federal securities and other laws and regulations thereunder applicable thereto;
and
(p) The proxy statement of the Acquired Portfolio (the "Proxy
Statement") to be included in the Registration Statement referred to in
paragraph 5.6, insofar as it relates to the Acquired Portfolio, will, on the
effective date of the Registration Statement and on the Closing Date (i) not
contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which such statements were made, not materially
misleading provided, however, that the representations and warranties in this
subparagraph (p) shall not apply to statements in or omissions from the Proxy
Statement and the Registration Statement made in reliance upon and in conformity
with information that was furnished by the Acquiring Portfolio for use therein;
and (ii) comply in all material respects with the provisions of the 1933 Act,
the 1934 Act and the 1940 Act and the rules and regulations thereunder.
4.2. Except as has been disclosed to the Acquired Portfolio in a written
instrument executed by an officer of the Trust, the Trust, on behalf of the
Acquiring Portfolio, represents and warrants to the Acquired Portfolio as
follows:
(a) The Acquiring Portfolio is duly organized as a series of the
Trust, which is a trust duly organized, validly existing and in good standing
under the laws of the Commonwealth of Massachusetts, with power under the
Trust's Trust Instrument to own all of its properties and assets and to carry on
its business as it is now being conducted;
(b) The Trust is a registered investment company classified as a
management company of the open-end type, and its registration with the
Commission as an investment company under the 1940 Act and the registration of
the shares of the Acquiring Portfolio under the 1933 Act, is in full force and
effect;
(c) No consent, approval, authorization, or order of any court or
governmental authority is required for the consummation by the Acquiring
Portfolio of the transactions contemplated herein, except such as have been
obtained under the 1933 Act, the 1934 Act and the 1940 Act and such as may be
required by state securities laws;
(d) The current prospectus and statement of additional information of
the Acquiring Portfolio and each prospectus and statement of additional
information of the Acquiring Portfolio used during the three years previous to
the date of this Agreement conforms or conformed at the time of its use in all
material respects to the applicable requirements of the 1933 Act and the 1940
Act and the rules and regulations of the Commission thereunder and does not or
did not at the time of its use include any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were
made, not materially misleading;
(e) On the Closing Date, the Acquiring Portfolio will have good and
marketable title to the Acquiring Portfolio's assets, free of any liens of other
encumbrances, except those liens or encumbrances as to which the Acquired
Portfolio has received notice and necessary documentation at or prior to the
Closing;
(f) The Acquiring Portfolio is not engaged currently, and the
execution, delivery and performance of this Agreement will not result, in (i) a
material violation of the Trust's Trust Instrument or By-Laws or of any
agreement, indenture, instrument, contract, lease or other undertaking to which
the Trust, on behalf of the Acquiring Portfolio, is a party or by which it is
bound; or (ii) the acceleration of any obligation, or the imposition of any
penalty, under any agreement, indenture, instrument, contract, lease, judgment
or decree to which the Trust, on behalf of the Acquiring Portfolio, is a party
or by which it is bound;
(g) Except as otherwise disclosed in writing to and accepted by the
Acquired Portfolio, no litigation or administrative proceeding or investigation
of or before any court or governmental body is presently pending or, to its
knowledge, threatened against the Trust, on behalf of the Acquiring Portfolio,
or any of the Acquiring Portfolio's properties or assets that, if adversely
determined, would materially and adversely affect the Acquiring Portfolio's
financial condition or the conduct of the Acquiring Portfolio's business. The
Trust, on behalf of the Acquiring Portfolio, knows of no facts which might form
the basis for the institution of such proceedings and is not a party to or
subject to the provisions of any order, decree or judgment of any court or
governmental body which materially and adversely affects its business or its
ability to consummate the transactions herein contemplated;
(h) The Statement of Assets and Liabilities, Statements of Operations
and Changes in Net Assets and Schedule of Investments of the Acquiring Portfolio
at December 31, 2004 have been audited by KPMG LLP, an independent registered
public accounting firm, and are in accordance with GAAP consistently applied,
and such statements (copies of which have been furnished to the Acquired
Portfolio) present fairly, in all material respects, the financial condition of
the Acquiring Portfolio as of such date in accordance with GAAP, and there are
no known contingent liabilities of the Acquiring Portfolio required to be
reflected on a balance sheet (including the notes thereto) in accordance with
GAAP as of such date not disclosed therein:
(i) Since December 31, 2004, there has not been any material adverse
change in the Acquiring Portfolio's financial condition, assets, liabilities or
business, other than changes occurring in the ordinary course of business, or
any incurrence by the Acquiring Portfolio of indebtedness maturing more than one
year from the date such indebtedness was incurred, except as otherwise disclosed
to and accepted by the Acquired Portfolio (For purposes of this subparagraph
(i), a decline in net asset value per share of the Acquiring Portfolio due to
declines in market values of securities in the Acquiring Portfolio's portfolio,
the discharge of Acquiring Portfolio liabilities, or the redemption of Acquiring
Portfolio Shares by shareholders of the Acquiring Portfolio, shall not
constitute a material adverse change);
(j) On the Closing Date, all Federal and other tax returns, dividend
reporting forms, and other tax-related reports of the Acquiring Portfolio
required by law to have been filed by such date (including any extensions) shall
have been filed and are or will be correct in all material respects, and all
Federal and other taxes shown as due or required to be shown as due on said
returns and reports shall have been paid or provision shall have been made for
the payment thereof, and to the best of the Acquiring Portfolio's knowledge no
such return is currently under audit and no assessment has been asserted with
respect to such returns;
(k) For each taxable year of its operation (including the taxable year
that includes the Closing Date), the Acquiring Portfolio has met (or will meet)
the requirements of Subchapter M of the Code for qualification as a regulated
investment company, has been eligible to (or will be eligible to) and has
computed (or will compute) its federal income tax under Section 852 of the Code,
and has distributed all of its investment company taxable income and net capital
gain (as defined in the Code) for periods ending prior to the Closing Date;
(1) All issued and outstanding shares of the Acquiring Portfolio are,
and on the Closing Date will be, duly and validly issued and outstanding, fully
paid and non-assessable by the Trust and have been offered and sold in every
state and the District of Columbia in compliance in all material respects with
applicable registration requirements of the 1933 Act and state securities laws.
The Acquiring Portfolio does not have outstanding any options, warrants or other
rights to subscribe for or purchase any Acquiring Portfolio Shares, nor is there
outstanding any security convertible into any Acquiring Portfolio Shares;
(m) The execution, delivery and performance of this Agreement will
have been fully authorized prior to the Closing Date by all necessary action, if
any, on the part of the Trustees of the Trust, on behalf of the Acquiring
Portfolio, and this Agreement will constitute a valid and binding obligation of
the Acquiring Portfolio, enforceable in accordance with its terms, subject, as
to enforcement, to bankruptcy, insolvency, reorganization, moratorium and other
laws relating to or affecting creditors' rights and to general equity
principles;
(n) The Class I Acquiring Portfolio Shares to be issued and delivered
to the Acquired Portfolio, for the account of the Acquired Portfolio
Shareholders, pursuant to the terms of this Agreement, will on the Closing Date
have been duly authorized and, when so issued and delivered, will be duly and
validly issued Acquiring Portfolio Shares, and will be fully paid and
non-assessable;
(o) The information to be furnished by the Trust for use in the
registration statements, proxy materials and other documents that may be
necessary in connection with the transactions contemplated hereby shall be
accurate and
complete in all material respects and shall comply in all material respects with
Federal securities and other laws and regulations applicable thereto; and
(p) That insofar as it relates to the Acquiring Portfolio, the
Registration Statement relating to the Acquiring Portfolio Shares issuable
hereunder, and the proxy materials of the Acquired Portfolio to be included in
the Registration Statement, and any amendment or supplement to the foregoing,
will, from the effective date of the Registration Statement through the date of
the meeting of shareholders of the Acquired Portfolio contemplated therein (i)
not contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which such statements were made, not
misleading, provided, however, that the representations and warranties in this
subparagraph (p) shall not apply to statements in or omissions from the
Registration Statement made in reliance upon and in conformity with information
that was furnished by the Acquired Portfolio for use therein; and (ii) comply in
all material respects with the provisions of the 1933 Act, the 1934 Act and the
1940 Act and the rules and regulations thereunder.
5. COVENANTS OF THE ACQUIRING PORTFOLIO AND THE ACQUIRED PORTFOLIO
5.1. The Acquiring Portfolio and the Acquired Portfolio each will operate
its business in the ordinary course between the date hereof and the Closing
Date, it being understood that such ordinary course of business will include the
declaration and payment of customary dividends and distributions, and any other
distribution that may be advisable.
5.2. The Acquired Portfolio will call a meeting of the shareholders of the
Acquired Portfolio to consider and act upon this Agreement and to take all other
action necessary to obtain approval of the transactions contemplated herein.
5.3. The Acquired Portfolio covenants that the Class I Acquiring Portfolio
Shares to be issued hereunder are not being acquired for the purpose of making
any distribution thereof, other than in accordance with the terms of this
Agreement.
5.4. The Acquired Portfolio will assist the Acquiring Portfolio in
obtaining such information as the Acquiring Portfolio reasonably requests
concerning the beneficial ownership of the Acquired Portfolio shares.
5.5. Subject to the provisions of this Agreement, the Acquiring Portfolio
and the Acquired Portfolio will each take, or cause to be taken, all action, and
do or cause to be done, all things reasonably necessary, proper or advisable to
consummate and make effective the transactions contemplated by this Agreement.
5.6. The Acquired Portfolio will provide the Acquiring Portfolio with
information reasonably necessary for the preparation of a prospectus (the
"Prospectus"), which will include the Proxy Statement referred to in paragraph
4.l(p), all to be included in a Registration Statement on Form N-14 of the
Acquiring Portfolio (the "Registration Statement"), in compliance with the 1933
Act, the 1934 Act and the 1940 Act, in connection with the meeting of the
shareholders of the Acquired Portfolio to consider approval of this Agreement
and the transactions contemplated herein.
5.7. As soon as is reasonably practicable after the Closing, the Acquired
Portfolio will make a liquidating distribution to its shareholders consisting of
the Class I Acquiring Portfolio Shares received at the Closing.
5.8. The Acquiring Portfolio and the Acquired Portfolio shall each use its
reasonable best efforts to fulfill or obtain the fulfillment of the conditions
precedent to effect the transactions contemplated by this Agreement as promptly
as practicable.
5.9. The Acquired Portfolio, covenants that it will, from time to time, as
and when reasonably requested by the Acquiring Portfolio, execute and deliver or
cause to be executed and delivered all such assignments and other instruments,
and will take or cause to be taken such further action as the Trust, on behalf
of the Acquiring Portfolio, may reasonably deem necessary or desirable in order
to vest in and confirm (a) the Acquired Portfolio's title to and possession of
the Acquiring Portfolio's Shares to be delivered hereunder, and (b) the Trust's,
on behalf of the Acquiring Portfolio's, title to and possession of all the
assets and otherwise to carry out the intent and purpose of this Agreement.
5.10. The Acquiring Portfolio will use all reasonable efforts to obtain the
approvals and authorizations required by the 1933 Act, the 1940 Act and such of
the state blue sky or securities laws as may be necessary in order to continue
its operations after the Closing Date.
6. CONDITIONS PRECEDENT TO OBLIGATIONS OF THE ACQUIRED PORTFOLIO
The obligations of the Acquired Portfolio to consummate the transactions
provided for herein shall be subject, at the Acquired Portfolio's election, to
the performance by the Trust, on behalf of the Acquiring Portfolio, of all the
obligations to be performed by it hereunder on or before the Closing Date, and,
in addition thereto, the following further conditions:
6.1. All representations and warranties of the Trust, on behalf of the
Acquiring Portfolio, contained in this Agreement shall be true and correct in
all material respects as of the date hereof and, except as they may be affected
by the transactions contemplated by this Agreement, as of the Closing Date, with
the same force and effect as if made on and as of the Closing Date;
6.2. The Trust shall have delivered to the Acquired Portfolio a certificate
executed in its name by its President or Vice President and its Treasurer or
Assistant Treasurer, in a form reasonably satisfactory to the Acquired Portfolio
and dated as of the Closing Date, to the effect that the representations and
warranties of the Trust, on behalf of the Acquiring Portfolio, made in this
Agreement are true and correct at and as of the Closing Date, except as they may
be affected by the transactions contemplated by this Agreement and as to such
other matters as the Acquired Portfolio shall reasonably request;
6.3. The Trust, on behalf of the Acquiring Portfolio, shall have performed
all of the covenants and complied with all of the provisions required by this
Agreement to be performed or complied with by the Trust, on behalf of the
Acquiring Portfolio, on or before the Closing Date; and
6.4. The Acquired Portfolio and the Acquiring Portfolio shall have agreed
on the number of full and fractional Acquiring Portfolio Shares of Class I to be
issued in connection with the Reorganization after such number has been
calculated in accordance with paragraph 1.1.
7. CONDITIONS PRECEDENT TO OBLIGATIONS OF THE ACQUIRING PORTFOLIO
The obligations of the Trust, on behalf of the Acquiring Portfolio, to
complete the transactions provided for herein shall be subject, at the Trust's
election, to the performance by the Acquired Portfolio, of all of the
obligations to be performed by it hereunder on or before the Closing Date and,
in addition thereto, the following conditions:
7.1. All representations and warranties of the Acquired Portfolio contained
in this Agreement shall be true and correct in all material respects as of the
date hereof and, except as they may be affected by the transactions contemplated
by this Agreement, as of the Closing Date, with the same force and effect as if
made on and as of the Closing Date;
7.2. The Acquired Portfolio shall have delivered to the Acquiring Portfolio
a statement of the Acquired Portfolio's assets and liabilities, as of the
Closing Date, certified by the Treasurer of the Trust;
7.3. The Acquired Portfolio shall have delivered to the Acquiring Portfolio
on the Closing Date a certificate executed in its name by its President or Vice
President and its Treasurer or Assistant Treasurer, in form and substance
satisfactory to the Trust and dated as of the Closing Date, to the effect that
the representations and warranties of the Acquired Portfolio made in this
Agreement are true and correct at and as of the Closing Date, except as they may
be affected by the transactions contemplated by this Agreement, and as to such
other matters as the Trust shall reasonably request;
7.4. The Acquired Portfolio shall have performed all of the covenants and
complied with all of the provisions required by this Agreement to be performed
or complied with by the Acquired Portfolio on or before the Closing Date;
7.5. The Acquired Portfolio and the Acquiring Portfolio shall have agreed
on the number of full and fractional Acquiring Portfolio Shares of Class I to be
issued in connection with the Reorganization after such number has been
calculated in accordance with paragraph 1.1; and
7.6. The Acquired Portfolio shall have declared and paid a distribution or
distributions prior to the Closing that, together with all previous
distributions, shall have the effect of distributing to its shareholders (i) all
of its investment company taxable income and all of its net realized capital
gains, if any, for the period from the close of its last fiscal year to 4:00p.m.
Eastern time on the Closing; and (ii) any undistributed investment company
taxable income and net realized capital gains from any period to the extent not
otherwise already distributed.
8. FURTHER CONDITIONS PRECEDENT TO OBLIGATIONS OF THE ACQUIRING PORTFOLIO AND
THE ACQUIRED PORTFOLIO
If any of the conditions set forth below have not been satisfied on or
before the Closing Date with respect to the Acquired Portfolio, or the Trust, on
behalf of the Acquiring Portfolio, the other party to this Agreement shall, at
its option, not be required to consummate the transactions contemplated by this
Agreement:
8.1. The Agreement and the transactions contemplated herein shall have been
approved by the requisite vote of the holders of the outstanding shares of the
Acquired Portfolio in accordance with the provisions of the its Articles of
Incorporation, By-Laws, applicable Maryland law and the 1940 Act, and certified
copies of the resolutions evidencing such approval shall have been delivered to
the Acquiring Portfolio. Notwithstanding anything herein to the contrary,
neither the Trust nor the Acquired Portfolio may waive the conditions set forth
in this paragraph 8.1;
8.2. On the Closing Date no action, suit or other proceeding shall be
pending or, to its knowledge, threatened before any court or governmental agency
in which it is sought to restrain or prohibit, or obtain damages or other relief
in connection with, this Agreement or the transactions contemplated herein;
8.3. All consents of other parties and all other consents, orders and
permits of Federal, state and local regulatory authorities deemed necessary by
the Trust or the Acquired Portfolio to permit consummation, in all material
respects, of the transactions contemplated hereby shall have been obtained,
except where failure to obtain any such consent, order or permit would not
involve a risk of a material adverse effect on the assets or properties of the
Acquiring Portfolio or the Acquired Portfolio, provided that either party hereto
may for itself waive any of such conditions;
8.4. The Registration Statement shall have become effective under the 1933
Act and no stop orders suspending the effectiveness thereof shall have been
issued and, to the best knowledge of the parties hereto, no investigation or
proceeding for that purpose shall have been instituted or be pending, threatened
or contemplated under the 1933 Act; and
8.5. The parties shall have received the opinion of Dechert LLP addressed
to the Acquired Portfolio and the Trust substantially to the effect that, based
upon certain facts, assumptions, and representations, the transaction
contemplated by this Agreement shall constitute a tax-free reorganization for
Federal income tax purposes. The delivery of such opinion is conditioned upon
receipt by Dechert LLP of representations it shall request of the Trust and the
Acquired Portfolio. Notwithstanding anything herein to the contrary, neither the
Trust nor the Acquired Portfolio may waive the condition set forth in this
paragraph 8.5.
9. BROKERAGE FEES AND EXPENSES
9.1. The Acquired Portfolio, and the Trust, on behalf of the Acquiring
Portfolio, represent and warrant to each other that there are no brokers or
finders entitled to receive any payments in connection with the transactions
provided for herein.
9.2 The expenses relating to the proposed Reorganization will be borne by
the investment adviser to the Acquiring Portfolio (or an affiliate of the
investment adviser). The costs of the Reorganization shall include, but not be
limited to, costs associated with obtaining any necessary order of exemption
from the 1940 Act, preparation of the Registration Statement, printing and
distributing the Acquiring Portfolio's prospectus and the Acquired Portfolio's
proxy materials, legal fees, accounting fees, securities registration fees, and
expenses of holding shareholders' meetings. Notwithstanding any of the
foregoing, expenses will in any event be paid by the party directly incurring
such expenses if and to the extent that the payment by another person of such
expenses would result in the disqualification of such party as a "regulated
investment company" within the meaning of Section 851 of the Code.
10. ENTIRE AGREEMENT; SURVIVAL OF WARRANTIES
10.1. The Trust and the Acquired Portfolio agree that neither party has
made any representation, warranty or covenant not set forth herein and that this
Agreement constitutes the entire agreement between the parties.
10.2. The representations, warranties and covenants contained in this
Agreement or in any document delivered pursuant hereto or in connection herewith
shall survive the consummation of the transactions contemplated hereunder. The
covenants to be performed after the Closing shall survive the Closing.
11. TERMINATION
This Agreement may be terminated and the transactions contemplated hereby
may be abandoned by either party by (i) mutual agreement of the parties; or (ii)
by either party if the Closing shall not have occurred on or before March 31,
2006, unless such date is extended by mutual agreement of the parties; or (iii)
by either party if the other party shall have materially breached its
obligations under this Agreement or made a material and intentional
misrepresentation herein or in connection herewith. In the event of any such
termination, this Agreement shall become void and there shall be no liability
hereunder on the part of any party or their respective Trustees or Directors or
officers, except for any such material breach or intentional misrepresentation,
as to each of which all remedies at law or in equity of the party adversely
affected shall survive.
12. AMENDMENTS
This Agreement may be amended, modified or supplemented in such manner as
may be deemed necessary or advisable by the authorized officers of the Acquired
Portfolio and the Trust; provided, however, that following the meeting of the
shareholders of the Acquired Portfolio pursuant to paragraph 5.2 of this
Agreement, no such amendment may have the effect of changing the provisions for
determining the number of the Class I Acquiring Portfolio Shares to be issued to
the Acquired Portfolio Shareholders under this Agreement to the detriment of
such shareholders without their further approval.
13. NOTICES
Any notice, report, statement or demand required or permitted by any
provisions of this Agreement shall be in writing and shall be given by
facsimile, personal service or prepaid or certified mail addressed to the Trust
or the Acquired Portfolio, 0000 Xxxx Xxxxxxxxxx Xxxxx Xxxx, Xxxxxxxxxx, Xxxxxxx
00000-0000, attn: Xxxx Xxxxxxx, in each case with a copy to Dechert LLP, 0000 X
Xxxxxx, X.X., Xxxxxxxxxx, X.X. 00000, attn: Xxxxxxx X. Xxxxxx.
14. HEADINGS; COUNTERPARTS; GOVERNING LAW; ASSIGNMENT; LIMITATION OF LIABILITY
14.1. The Article and paragraph headings contained in this Agreement are
for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.
14.2. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original.
14.3. This Agreement shall be governed by and construed in accordance with
the laws of the State of Maryland without regard to its principles of conflicts
of laws.
14.4. This Agreement shall bind and inure to the benefit of the parties
hereto and their respective successors and assigns, but no assignment or
transfer hereof or of any rights or obligations hereunder shall be made by any
party without the written consent of the other party. Nothing herein expressed
or implied is intended or shall be construed to confer upon or give any person,
firm or corporation, other than the parties hereto and their respective
successors and assigns, any rights or remedies under or by reason of this
Agreement.
14.5. It is expressly agreed that the obligations of the parties hereunder
shall not be binding upon any of the Directors, shareholders, nominees,
officers, agents, or employees of the Acquired Portfolio personally, but shall
bind only the property of the Acquired Portfolio, as provided in the Articles of
Incorporation of the Acquired Portfolio. The execution and delivery by such
officers shall not be deemed to have been made by any of them individually or to
impose any liability on any of them personally, but shall bind only the property
of such party.
IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be
executed by its President or Vice President and its seal to be affixed thereto
and attested by its Secretary or Assistant Secretary.
Attest: ING INVESTORS TRUST on behalf of its
ING JPMORGAN EMERGING MARKET EQUITY
PORTFOLIO series
/s/ Xxxxx X. Xxxxxxx /s/ Xxxxxxxx X. Xxxxxxxx
-------------------- ------------------------
Xxxxx X. Xxxxxxx By: Xxxxxxxx X. Xxxxxxxx
Assistant Secretary Senior Vice President
Attest:
ING VP EMERGING MARKETS FUND, INC.
On behalf of its ING VP EMERGING MARKETS
FUND series
/s/ Xxxxx X. Xxxxxxx /s/ Xxxxxxxx X. Xxxxxxxx
-------------------- ------------------------
Xxxxx X. Xxxxxxx By: Xxxxxxxx X. Xxxxxxxx
Assistant Secretary Senior Vice President
