EX-99.23(a)(3)
AMENDED AND RESTATED
AGREEMENT AND DECLARATION OF TRUST
OF
THE ROXBURY FUNDS
The Agreement and Declaration of Trust of The Roxbury Funds (the
"TRUST"), dated as of April 4, 2006, is hereby amended and restated as of March
20, 2007, among the individuals listed on the signatory page attached hereto
(each, a "TRUSTEE") and each person who becomes a Shareholder (as defined in
Section 1.2) in accordance with the terms hereinafter set forth.
WHEREAS, pursuant to Section 1.1, the Trustees are authorized to
conduct the business of the Trust under any name that they may determine;
WHEREAS, the Trustees have determined that the business of the Trust
shall be conducted under the name of The Roxbury Funds and that a Certificate of
Trust was filed with the Secretary of State of the State of Delaware on April 4,
2006 to form the Trust;
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 and Declaration of Trust, for the benefit of the
Shareholders as set forth below.
ARTICLE 1
NAME AND DEFINITIONS
Section 1.1 NAME. This trust shall be known as "The Roxbury Funds" and
the Trustees shall conduct the business of the Trust under that name or any
other name as they may from time to time determine.
Section 1.2 DEFINITIONS. Whenever used herein, unless otherwise
required by the context or specifically provided:
1.2.1 "BY-LAWS" shall mean the By-Laws of the Trust as amended
from time to time.
1.2.2 "CLASS" shall mean a portion of Shares of a Portfolio of
the Trust established in accordance with the provisions of Article 3 hereof.
1.2.3 "COVERED PERSON" shall have the meaning assigned to it in
Section 9.2.1.
1.2.4 "DECLARATION OF TRUST" shall mean this Amended and Restated
Agreement and Declaration of Trust, as amended or restated from time to time.
1.2.5 "DELAWARE ACT" refers to the Delaware Statutory Trust Act,
12 Del. C. Section 3801 et seq., as such act may be amended from time to time.
1.2.6 "CLASS EXPENSES" shall mean 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.
1.2.7 "COMMISSION" shall mean the Securities and Exchange
Commission.
1.2.8 "GENERAL ASSETS" shall have the meaning set forth in
Section 3.4.1 hereof.
1.2.9 "INTERESTED PERSON" shall have the meaning set forth in
Section 2(a)(19) of the 0000 Xxx.
1.2.10 "INVESTMENT MANAGER" or "MANAGER" shall mean a party
furnishing services to the Trust pursuant to any contract described in Section
6.1 hereof.
1.2.11 "PERSON" shall mean and include any of the following:
individuals, limited liability companies, corporations, partnerships, trusts,
foundations, plans, associations, joint ventures, estates and other entities,
whether or not legal entities, and governments and agencies and political
subdivisions thereof, whether domestic or foreign.
1.2.12 "PORTFOLIO" refers to each series of Shares established
and designated under or in accordance with the provisions of Article 3 hereof.
1.2.13 "PRINCIPAL UNDERWRITER" shall have the meaning set forth
in Section (2)(a)(29) of the 0000 Xxx.
1.2.14 "PROPORTIONATE INTEREST" shall have the meaning set forth
in Section 3.2.2 hereof.
1.2.15 "SHARES" means the shares of beneficial interest into
which the beneficial interest in the Trust shall be divided from time to time
and/or, when used in relation to any particular Portfolio or Class of Shares
established by the Trustees pursuant to Section 3.2 hereof, shares of beneficial
interest into which such Portfolio or Class of Shares shall be divided from time
to time in accordance with the terms hereof. The term "Shares" includes
fractions of Shares as well as whole Shares.
1.2.16 "SHAREHOLDER" means a record owner of outstanding Shares
of the Trust.
1.2.17 "SUCCESSOR ENTITY" shall have the meaning set forth in
Section 10.3.
1.2.18 "TRUST" refers to the Delaware statutory trust established
by this Declaration of Trust.
1.2.19 "TRUSTEES" refers to the persons who have signed this
Declaration of Trust, so long as they continue in office in accordance with the
terms hereof, and all other persons who may from time to time be duly elected or
appointed to serve on the Board of Trustees in accordance with the provisions
hereof, and reference herein to a Trustee or the Trustees shall refer to such
person or persons in their capacity as trustees hereunder.
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1.2.20 "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.
1.2.21 "1940 ACT" refers to the Investment Company Act of 1940,
and the rules and regulations promulgated thereunder, each as amended from time
to time. References herein to specific sections of the 1940 Act shall be deemed
to include such rules and regulations as are applicable to such sections as
determined by the Trustees or their designees.
ARTICLE 2
PURPOSE OF TRUST
The purpose of the Trust is to conduct, operate and carry on the
business of an open-end 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 authority under this Declaration of Trust.
ARTICLE 3
SHARES
Section 3.1 SHARES OF BENEFICIAL INTEREST.
3.1.1 The beneficial interest in the Trust shall at all times be
divided into an unlimited number of Shares, with a par value of $.01 per Share,
PROVIDED that the Shares of a Portfolio that is established by the Trustees to
be taxable as a separate partnership for federal income tax purposes shall have
no par value. Shares shall be validly issued, fully paid and non-assessable when
issued for such consideration as the Trustees shall determine. All 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 non-assessable.
3.1.2 Pursuant to Section 3806(b) of the Delaware Act, the
Trustees shall have authority, from time to time, (a) to establish Shares of one
or more series, each of which constitutes a "Portfolio" and shall be separate
and distinct from the Shares in any other Portfolio and (b) to further divide
Shares of any Portfolio into one or more separate and distinct classes of
Shares, each of which constitutes a "Class."
3.1.3 The Portfolios shall include, without limitation, those
Portfolios specifically established and designated in Section 3.2.3 hereof, and
such other Portfolios as the Trustees may deem necessary or desirable. The
Trustees shall have exclusive power, without the requirement of Shareholder
approval, from time to time, to establish and designate separate and distinct
Portfolios, and, subject to the provisions of this Declaration of Trust and the
1940 Act, to fix and determine the rights of Shareholders of Shares in such
Portfolios. If only one Portfolio shall be established, unless provided for
otherwise, the Shares shall have the rights and preferences provided for herein
and in Section 3.4 hereof to the extent relevant.
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3.1.4 This Trust is a series trust pursuant to Sections 3804(a)
and 3806(b) of the Delaware Act, and each Portfolio shall be a separate series
of the Trust within the meaning of Section 3806(b)(2) of the Delaware Act. As
such, separate and distinct records shall be maintained for each Portfolio and
the assets of the Trust associated with each Portfolio shall be held in such
separate and distinct records (directly or indirectly, including through a
nominee or otherwise) and accounted for in such separate and distinct records
separately from the other assets of the Trust or any other Portfolio. The debts,
liabilities, obligations and expenses incurred, contracted for or otherwise
existing with respect to each Portfolio shall be enforceable against the assets
of such Portfolio only, and not against the assets of the Trust generally or the
assets of any other Portfolio nor shall the assets of any Portfolio be charged
with the debts, liabilities, obligations and expenses incurred, contracted for
or otherwise existing with respect to another Portfolio, or, except as otherwise
provided herein, the Trust generally.
Section 3.2 ESTABLISHMENT AND DESIGNATION OF PORTFOLIOS AND CLASSES.
3.2.1 PORTFOLIOS. The Trust shall consist of one or more separate
and distinct Portfolios, each with an unlimited number of Shares unless
otherwise specified by the Trustees. Any fractional Share of a Portfolio shall
have proportionately all rights and obligations of a whole share of such
Portfolio, including rights with respect to voting, receipt of dividends and
distributions and redemptions of Shares as set forth in Section 3.4 hereof.
3.2.2 CLASSES. The Trustees may establish one or more Classes of
Shares of any Portfolio, each with an unlimited number of Shares unless
otherwise specified by the Trustees. Each Class so established and designated
shall represent a proportionate undivided interest (as determined by or at the
direction of, or pursuant to authority granted by, the Trustees ("Proportionate
Interest"), in the net assets belonging to that Portfolio and shall have
identical voting, dividend, liquidation and other rights, preferences, powers,
restrictions, limitations and designations and be subject to the same terms and
conditions, except as established by the Trustees, including without limitation:
(a) each Class may be subject to separate initial and/or
deferred sales charges, each as determined by the Trustees;
(b) class Expenses allocated to a Class for which such expenses
were incurred shall be borne solely by that Class;
(c) other expenses, costs charges and reserves allocated to a
Class in accordance with Section 3.4.2 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 1940 Act;
(d) dividends declared and payable to a Class pursuant to
section 3.4.3 shall reflect the items separately allocated thereto pursuant to
the preceding clauses; and
(e) each Class may have separate rights to convert to another
Class, exchange rights, and similar rights, each as determined by the Trustees.
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3.2.3 ESTABLISHMENT AND DESIGNATION BY ACTION OF THE TRUSTEES.
The Trustees hereby establish and designate the Portfolios and Classes listed on
SCHEDULE A attached hereto and made a part hereof. Each additional Portfolio and
the Classes of such additional Portfolio shall be established by the adoption of
a resolution adopted by a majority of the Trustees. Each such resolution is
incorporated herein by reference and made a part of the Declaration of Trust
whether or not expressly stated in such resolution, and shall be effective upon
the occurrence of both (a) the date stated therein (or, if no such date is
stated, upon the date of such adoption) and (b) the execution of an amendment
either to this Declaration of Trust or to SCHEDULE A hereto establishing and
designating such additional Portfolios and Classes.
Section 3.3 ACTIONS AFFECTING PORTFOLIOS. Subject to the right of
Shareholders, if any, to vote pursuant to Section 7.1, 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 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, 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 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 previously established and designated, the Trustees
may abolish that Portfolio and the establishment and designation thereof.
Section 3.4 RELATIVE RIGHTS AND PREFERENCES. Shares of each Portfolio
established pursuant to Section 3.2 hereof, unless otherwise provided in the
resolution establishing such Portfolio, shall have the following relative
rights and preferences:
3.4.1 ASSETS HELD WITH RESPECT TO A PARTICULAR PORTFOLIO OR CLASS.
(a) SPECIFIC ASSETS. All consideration received by the Trust
for the issue or sale of Shares of a particular Portfolio, including dividends
and distributions paid by, and reinvested in, such Portfolio, together with all
assets in which such consideration is invested or reinvested, all income,
earnings, profits, and proceeds thereof from whatever source derived, including,
without limitation, 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 irrevocably be held with
respect to that Portfolio for all purposes, subject only to the rights of
creditors, and shall be so recorded upon the books of account of the Trust. Such
consideration, assets, income, earnings, profits and proceeds thereof, from
whatever source derived, including, without limitation, 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, are herein referred to as "assets held with respect to" that Portfolio.
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(b) GENERAL ASSETS. In the event that there are any assets,
income, earnings, profits and proceeds thereof, or any funds or payments derived
from any reinvestment of such proceeds, which are not readily identifiable as
assets held with respect to any particular Portfolio (collectively "General
Assets"), the Trustees shall allocate such General Assets to, between or among
any one or more of the Portfolios in such manner and on such basis as the
Trustees, in their sole discretion, deem fair and equitable, and any General
Asset so allocated to a particular Portfolio shall be held with respect to that
Portfolio. Each such allocation by the Trustees shall be conclusive and binding
upon the Shareholders of all Portfolios for all purposes in the absence of
manifest error.
(c) CLASS PROPORTIONATE INTERESTS. Each Class of a Portfolio
shall have a 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 items held with respect to such Portfolio multiplied by
the Class's Proportionate Interest.
3.4.2 LIABILITIES HELD WITH RESPECT TO A PARTICULAR PORTFOLIO OR
CLASS.
(a) SPECIFIC LIABILITIES. The assets of the Trust held with
respect to each Portfolio shall be charged with the liabilities of the Trust
with respect to such Portfolio and all expenses, costs, charges and reserves
attributable to such Portfolio. Class Expenses shall, in all cases, be allocated
to the Class for which such Class Expenses were incurred.
(b) GENERAL LIABILITIES. Any general liabilities, expenses,
costs, charges or reserves of the Trust or any Portfolio that are not readily
identifiable as belonging to a particular Portfolio or any particular Class
thereof shall be allocated and charged by the Trustees, between or among any one
or more of the Portfolios or Classes in such manner and on such basis as the
Trustees in their sole discretion deem fair and equitable. Each allocation of
liabilities, expenses, costs, charges and reserves by the Trustees shall be
conclusive and binding upon the Shareholders of all Portfolios for all purposes
in the absence of manifest error. Liabilities of the Trust for indemnification
and advancement of expenses of a Covered Person under Section 9.2 may be paid
out of the assets of a particular Portfolio or Class notwithstanding the fact,
if it be the case, that the indemnification or advancement of expenses relates
in whole or in part to acts or omissions of the Covered Person with respect to
another Portfolio or Class.
(c) CLAIMS OF CREDITORS. All Persons who have extended credit
which has been allocated to a particular Portfolio, or who have a claim or
contract which has been allocated to a Portfolio, shall look exclusively to the
assets held with respect to such Portfolio for payment of such credit, claim, or
contract. None of the debts, liabilities, obligations and expenses incurred,
contracted or otherwise existing with respect to the Trust generally that have
not been allocated to a specified Portfolio, or with respect to any other
Portfolio, shall be enforceable against the assets of such specified Portfolio.
Each creditor, claimant and contracting party shall be deemed nevertheless to
have agreed to such limitation unless an express provision to the contrary has
been incorporated in the written contract or other document establishing the
contractual relationship.
3.4.3 DIVIDENDS, DISTRIBUTIONS, REDEMPTIONS AND REPURCHASES.
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(a) DIVIDENDS AND DISTRIBUTIONS. Shareholders of any Portfolio
shall be entitled to receive dividends and distributions, when, if and as
declared with respect thereto in the manner provided in Section 8.1 hereof. The
Trustees shall have full discretion to determine which items shall be treated as
income and which items as capital; and each such determination and allocation
shall be conclusive and binding upon the Shareholders in the absence of manifest
error. The Trustees may adopt and offer to Shareholders such dividend
reinvestment plans, cash distribution payment plans, or similar plans as the
Trustees deem appropriate.
(b) NO PRIORITY OR PREFERENCE. No Share shall have any priority
or preference over any other Share of the same Portfolio or Class thereof with
respect to dividends or distributions of the Trust or otherwise. All dividends
and other distributions on Shares of a particular Portfolio or Class shall be
distributed pro rata to the Shareholders of such Portfolio or Class, as the case
may be, in proportion to the number of Shares of such 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.
(c) SOURCE OF DIVIDENDS AND DISTRIBUTIONS. No dividend or
distribution including, without limitation, any distribution paid upon
termination of the Trust or of any Portfolio or Class with respect to, or any
redemption or repurchase of, the Shares of any Portfolio or Class shall be
effected by the Trust other than from the assets held with respect to such
Portfolio or Class, nor shall any Shareholder of any Portfolio or Class
otherwise have any right or claim against the assets held with respect to any
other Portfolio or Class except to the extent that such Shareholder has such a
right or claim hereunder as a Shareholder of such other Portfolio or Class.
3.4.4 VOTING. Each Share shall have voting rights as provided in
Article 7 hereof. All Shares of the Trust entitled to vote on a matter shall
vote without differentiation among the separate Portfolios or Classes on a
one-vote-per-Share basis; PROVIDED, HOWEVER, that:
(a) if a matter to be voted on affects only the interests of
certain Portfolios, then only the Shareholders of such affected Portfolios shall
be entitled to vote on the matter;
(b) if a matter to be voted on affects only the interests of a
single Portfolio, then only the Shareholders of such Portfolio shall be entitled
to vote on the matter;
(c) if a matter to be voted on affects only the interests of
certain Classes, then only the Shareholders of such affected Classes shall be
entitled to vote on the matter; and
(d) if a matter to be voted on affects only the interests of a
single Class, then only the Shareholders of such Class shall be entitled to vote
on the matter.
3.4.5 EXCHANGE PRIVILEGE. The Trustees shall have the authority
to provide that the Shareholders of any Portfolio shall have the right to
exchange such Shares for Shares of one or more other Portfolios in accordance
with such requirements and procedures as may be established by the Trustees.
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3.4.6 TRANSFERABILITY. The Trustees shall have the authority to
provide that the shares of a Portfolio are nontransferable.
3.4.7 PRE-EMPTIVE RIGHTS. Shareholders shall have no pre-emptive
or other right to subscribe to any additional Shares or other securities issued
by the Trust or any Portfolio.
Section 3.5 NOTICES. Any and all notices to which any Shareholder
may be entitled and any and all communications shall be deemed duly served or
given (a) if mailed, postage prepaid, addressed to any Shareholder of record at
the Shareholder's last known address as recorded on the register of the Trust,
(b) if sent by electronic transmission to the Shareholder of record at the
Shareholder's last known address for electronic delivery as recorded on the
register of the Trust, (c) if mailed or sent by electronic delivery to one or
more members of the Shareholder's household in accordance with applicable law or
regulation, or (d) if otherwise sent in accordance with applicable law or
regulation.
Section 3.6 OWNERSHIP OF SHARES. The ownership of Shares shall be
recorded on the books of the Trust or a transfer or similar agent for the Trust,
which books shall be maintained separately for the Shares of each Portfolio and
Class thereof. No certificates evidencing the ownership of Shares shall be
issued except as the Board of Trustees may otherwise determine from time to
time. The Trustees may make such rules as they consider appropriate for the
transfer of Shares of each Portfolio and similar matters and, by resolution, may
restrict the transfer of Shares of a Portfolio. The record books of the Trust as
kept by the Trust or any transfer or similar agent, as the case may be, shall be
conclusive as to the identity of the Shareholders of each Portfolio and as to
the number of Shares of each Portfolio and Class thereof held from time to time
by each Shareholder.
Section 3.7 INVESTMENTS IN THE TRUST. Investments may be accepted
by the Trust from such Persons, at such times, on such terms, and for such
consideration as the Trustees from time to time may authorize. Each investment
shall be credited to the Shareholder's account in the form of full and
fractional Shares of the Trust in such Portfolio and Class as the purchaser
shall select, at the net asset value per Share next determined for such
Portfolio and Class after receipt of the investment; provided, however, that the
Trustees may, in their sole discretion, impose a sales or other upfront charge
upon investments in the Trust.
Section 3.8 STATUS OF SHARES; LIMITATION OF PERSONAL LIABILITY AND
INDEMNIFICATION OF SHAREHOLDERS.
3.8.1 Shares shall be deemed to be personal property giving only
the rights provided in this Declaration of Trust, the By-Laws of the Trust and
the resolutions of the Board of Trustees. Every Shareholder by virtue of having
become a Shareholder shall be held to have expressly assented and agreed to the
terms thereof. The death of a Shareholder during the existence of the Trust
shall not operate to terminate the Trust, 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 shall entitle such
representative only to the rights of said deceased Shareholder under this
Declaration of Trust. Ownership of Shares shall not entitle a Shareholder to any
title in or to the whole or any part of the Trust Property or right to call for
a partition or division of the same or for an accounting, nor shall the
ownership of Shares constitute the Shareholders as partners or joint venturers
except as specifically provided for pursuant to Article 3 herein or by
resolution of the Board of Trustees.
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3.8.2 No Shareholder 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. 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 agree to pay. Shareholders shall have the same
limitation of personal liability as is extended to shareholders of private
corporations for profit organized under the general corporation law of the State
of Delaware.
3.8.3 If any Shareholder or former Shareholder of any Portfolio
shall be held personally liable solely by reason of his being or having been a
Shareholder 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 any entity, its general
successor) shall be entitled out of the assets belonging to the applicable
Portfolio to be held harmless from and indemnified against all loss and expense
arising from such liability. The Trust, on behalf of the affected Portfolio,
shall, upon request by such Shareholder, assume the defense of any such claim
made against such Shareholder for any act or obligation of the Portfolio and
satisfy any judgment thereon from the assets of the Portfolio.
ARTICLE 4
THE BOARD OF TRUSTEES
Section 4.1 NUMBER. The number of Trustees constituting the Board
of Trustees shall be fixed from time to time by a written instrument signed, or
by resolution approved at a duly constituted meeting, by a majority of the Board
of Trustees, provided, however, that the number of Trustees shall in no event be
less than one (1) nor more than fifteen (15).
Section 4.2 ELECTION AND TENURE. Subject to the requirements of
Section 16(a) of the 1940 Act, the Board of Trustees, by action of a majority of
the then Trustees at a duly constituted meeting, may fill vacancies in the Board
of Trustees and remove Trustees with or without cause. Each Trustee shall serve
during the continued lifetime of the Trust until he or she dies, resigns, is
declared bankrupt or incompetent by a court of competent jurisdiction, or is
removed. Any Trustee may resign at any time by written instrument signed by him
and delivered to any officer of the Trust or to a meeting of the Trustees. Such
resignation shall be effective upon receipt unless specified to be effective at
some other time. Except to the extent expressly provided in a written agreement
with the Trust, no Trustee resigning and no Trustee removed shall have any right
to any compensation for any period following his or her resignation or removal,
or any right to damages or other payment on account of such removal. Any Trustee
may be removed at any meeting of Shareholders by a vote of two-thirds of the
outstanding Shares of the Trust. A meeting of Shareholders for the purpose of
electing or removing one or more Trustees may be called (a) by the Trustees upon
their own vote, or (b) upon the demand of Shareholders owning ten percent (10%)
or more of the Shares of the Trust in the aggregate.
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Section 4.3 EFFECT OF DEATH, RESIGNATION, ETC. OF A TRUSTEE. The
death, declination, resignation, retirement, removal, or incapacity of one or
more Trustees, or all of them, shall not operate to annul the Trust or to revoke
any existing agency created pursuant to the terms of this Declaration of Trust.
Whenever a vacancy in the Board of Trustees shall occur, until such vacancy is
filled as provided in Section 4.2, the Trustees in office, regardless of their
number, shall have all the powers granted to the Trustees and shall discharge
all the duties imposed upon the Trustees by this Declaration of Trust.
Section 4.4 TRUSTEE COMPENSATION. The Trustees as such shall be
entitled to reasonable compensation from the Trust. The Trustees 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.
ARTICLE 5
POWER OF THE TRUSTEES
Section 5.1 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 extent as if the Trustees were the sole owners of the Trust
Property and business in their own right, but with such powers of delegations as
may be permitted by this Declaration of Trust. 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 any and all such
instruments that they may consider desirable, necessary or appropriate 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 Declaration of Trust, the presumption shall be in favor of a
grant of power to the Trustees and unless otherwise specified herein or required
by the 1940 Act or other applicable law, any action by the Board of Trustees
shall be deemed effective if approved or taken by a majority of the Trustees
then in office or a majority of any duly constituted committee of Trustees. The
enumeration of any specific power in this Declaration of Trust 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 5.2 MANNER OF ACTING. Except as otherwise provided herein
or in the 1940 Act, any action to be taken by the Board of Trustees or any
committee thereof may be taken by:
(a) a majority of the Trustees or the members of the committee
(as the case may be) present at a meeting at which a quorum is present,
including any meeting held by means of a conference telephone circuit or similar
communications equipment by means of which all persons participating in the
meeting can hear each other; or
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(b) a written consent signed by a majority of the Trustees, or
members of the committee, as the case may be, filed with the minutes of the
proceedings of the Board of Trustees, or committee.
Section 5.3 POWERS OF THE TRUSTEES. Without limiting the provisions
of Section 5.1, the Trust shall have power and authority:
5.3.1 To operate as, and to carry on the business of, an
investment company, and exercise all the powers necessary and appropriate to the
conduct of such operations;
5.3.2 To invest and reinvest cash and cash items, to hold cash
uninvested, and to subscribe for, invest in, reinvest in, purchase or otherwise
acquire, own, hold, pledge, sell, assign, transfer, exchange, distribute, write
options on, lend or otherwise deal in or dispose of contracts for the future
acquisition or delivery of all types of securities (as used herein to include
any and all investments), futures contracts and options thereon, and forward
currency contracts of every nature and kind, including, without limitation, all
types of bonds, debentures, stocks, preferred stocks, negotiable or
non-negotiable instruments, obligations, evidences of indebtedness, certificates
of deposit or indebtedness, commercial paper, repurchase agreements, bankers'
acceptances, and other securities of any kind, issued, created, guaranteed, or
sponsored by any and all Persons, including, without limitation, the government
of the United States and any agencies or instrumentalities thereof, states,
territories, and possessions of the United States and the District of Columbia
and any political subdivision, agency, or instrumentality thereof, any foreign
government or any political subdivision of the U.S. Government or any foreign
government, or any international instrumentality or organization, or by any bank
or savings institution, or by any corporation or organization organized under
the laws of the United States or of any state, territory, or possession thereof,
or by any corporation or organization organized under any foreign law, or in
"when issued" contracts for any such securities, futures contracts and options
thereon, and forward currency contracts; to change the investments of the assets
of the Trust; and to exercise any and all rights, powers, and privileges of
ownership or interest in respect of any and all such investments of every kind
and description, including, without limitation, the right to consent and
otherwise act with respect thereto, with power to designate one or more Persons,
to exercise any of said rights, powers, and privileges in respect of any of said
instruments;
5.3.3 To sell, exchange, lend, pledge, mortgage, hypothecate,
lease, or write options with respect to or otherwise deal in any property rights
relating to any or all of the assets of the Trust or any Portfolio;
5.3.4 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 or 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 Trustees shall deem
proper;
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5.3.5 To exercise powers and rights of subscription or otherwise
which in any manner arise out of ownership of securities or property;
5.3.6 To hold any security or property in a form not indicating
that it is Trust Property, whether in bearer, book entry, unregistered or other
negotiable form, or in its own name or in the name of a custodian or
subcustodian or a nominee or nominees or otherwise or to authorize the custodian
or a subcustodian or a nominee or nominees to deposit the same in a securities
depository, subject in each case to the applicable provisions of the 1940 Act;
5.3.7 To consent to, or participate in, any plan for the
reorganization, consolidation or merger of any corporation or issuer of any
security which is held in the Trust; to consent to any contract, lease,
mortgage, purchase or sale of property by such corporation or issuer; and to pay
calls or subscriptions with respect to any security held in the Trust;
5.3.8 To join with other security holders in acting through a
committee, depositary, voting trustee or otherwise, and in that connection to
deposit any security with, or transfer any security to, any such committee,
depositary or trustee, and to delegate to them such power and authority with
relation to any security (whether or not so deposited or transferred) as the
Trustees shall deem proper, and to agree to pay, and to pay, such portion of the
expenses and compensation of such committee, depositary or trustee as the
Trustees shall deem proper;
5.3.9 To litigate, compromise, arbitrate, settle or otherwise
adjust claims in favor of or against the Trust or a Portfolio, or any matter in
controversy, including but not limited to claims for taxes;
5.3.10 To enter into joint ventures, general or limited
partnerships and any other combinations or associations;
5.3.11 To borrow funds or other property in the name of the Trust
or Portfolio exclusively for Trust purposes;
5.3.12 To endorse or guarantee the payment of any notes or other
obligations of any Person; to make contracts of guaranty or suretyship, or
otherwise assume liability for payment thereof;
5.3.13 Subject to Article 9, to purchase and pay for entirely out
of Trust Property such insurance as the Trustees may deem necessary, desirable
or appropriate for the conduct of the business, including, without limitation,
insurance policies insuring the assets of the Trust or payment of distributions
and principal on its portfolio investments, and insurance policies insuring the
Shareholders, Trustees, officers, employees, agents, any Investment Manager,
Principal Underwriter, or independent contractors of the Trust, individually
against all claims and liabilities of every nature arising by reason of holding
Shares, holding, being or having held any such office or position, or by reason
of any action taken or omitted, or alleged to have been taken or omitted, by any
such Person as Trustee, officer, employee, agent, Investment Manager, Principal
Underwriter, or independent contractor, including any action taken or omitted
that may be determined to constitute negligence;
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5.3.14 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 of that Portfolio;
5.3.15 To adopt, establish and carry out pension, profit-sharing,
share bonus, share purchase, savings, thrift and other retirement, incentive and
benefit plans, trusts and provisions, including the purchasing of life insurance
and annuity contracts as a means of providing such retirement and other
benefits, for any or all of the Trustees, officers, employees and agents of the
Trust;
5.3.16 To adopt, amend and repeal By-Laws not inconsistent with
this Declaration of Trust providing for the regulation and management of the
affairs of the Trust;
5.3.17 To elect and remove such officers and appoint and
terminate such agents as they consider appropriate;
5.3.18 To appoint from their own and establish and terminate one
or more committees consisting of two or more Trustees who may exercise the
powers and authority of the Board of Trustees to the extent that the Trustees
determine and to adopt a committee charter providing for such responsibilities;
5.3.19 Subject to the 1940 Act and in accordance with Section
6.1, to retain one or more Investment Managers to manage the assets of the Trust
(or any Portfolio) and to authorize such Investment Managers to employ one or
more sub-advisers;
5.3.20 In accordance with Section 6.3, to employ one or more
custodians of the assets of the Trust and to authorize such custodians to employ
subcustodians and to deposit all or any part of such assets in a system or
systems for the central handling of securities or with a Federal Reserve Bank;
5.3.21 In accordance with Section 6.3, to retain one or more
administrators, transfer agents or shareholder servicing agents;
5.3.22 Subject to the 1940 Act and in accordance with Section
6.2, to provide for the issuance and distribution of Shares by the Trust
directly or through one or more Principal Underwriters or otherwise;
5.3.23 To set record dates for the determination of Shareholders
with respect to various matters; declare and pay dividends and distributions to
Shareholders of each Portfolio from the assets of such Portfolio;
5.3.24 To establish from time to time one or more separate and
distinct Portfolios with separately defined investment objectives and policies
and distinct investment purposes in accordance with Article 3 hereof;
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5.3.25 To interpret the investment policies, practices or
limitations of any Portfolio;
5.3.26 To establish, from time to time, a minimum investment for
Shareholders in the Trust or in one or more Portfolios, or to require the
redemption of the Shares of any Shareholder whose investment is less than such
minimum upon giving notice to such Shareholder or in accordance with Section
8.3;
5.3.27 To delegate such authority as they consider desirable to
any officer of the Trust, to any committee of the Trustees and to any agent or
employee of the Trust or to any such custodian, administrator, transfer or
servicing agents, Investment Manager or Principal Underwriter;
5.3.28 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 set forth herein, either alone or in
association with others, and to do every other act or thing incidental or
appurtenant to or arising from the businesses, purposes, objects or powers set
forth above.
The Trust shall not be limited to investing in obligations maturing before the
possible termination of the Trust or one or more of its Portfolios. The Trust
shall not in any way be bound or limited by any present or future law or custom
in regard to investment by fiduciaries. The Trust shall not be required to
obtain any court order to deal with any assets of the Trust or take any other
action hereunder.
Section 5.4 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 a Portfolio, or partly out of the principal and partly out of income,
and to charge or allocate the same to, between or among such one or more of the
Portfolios, all expenses, fees, charges, taxes and liabilities incurred or
arising in connection with the Trust or Portfolios, 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, any Investment Manager, Principal Underwriter, auditors, counsel,
custodian, transfer agent, servicing agents, administrator and such other agents
or independent contractors and such other expenses and charges as the Trustees
may deem necessary or proper to incur.
Section 5.5 OWNERSHIP OF ASSETS OF THE TRUST. Title to all of the
assets of the Trust shall at all times be considered as vested in the Trust,
except that the Trustees shall have power to cause legal title to any Trust
Property to be held by or in the name of one or more of the Trustees, or in the
name of the Trust, or in the name of any other Person as nominee, on such terms
as the Trustees may determine. Upon the resignation, incompetency, bankruptcy,
removal, or death of a Trustee he or she shall automatically cease to have any
such title in any of the Trust Property, and the title of such Trustee in the
Trust Property shall vest automatically in the remaining Trustees. Such vesting
and cessation of title shall be effective whether or not conveyancing documents
have been executed and delivered. The Trustees may determine that the Trust or
the Trustees, acting for and on behalf of the Trust, shall be deemed to hold
beneficial ownership of any income earned on the securities owned by the Trust,
whether domestic or foreign.
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Section 5.6 ISSUANCE AND REPURCHASE OF SHARES. The Trustees shall
have the power to issue, sell, transfer, repurchase, redeem, retire, cancel,
acquire, hold, resell, reissue, dispose of, or otherwise deal in Shares and,
subject to applicable law and the provisions set forth in Section 3.3 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, with respect to which such Shares are
issued.
Section 5.7 POWER OF BOARD OF TRUSTEES TO CHANGE PROVISIONS RELATING TO
SHARES. Notwithstanding any other provision of this Declaration of Trust to
the contrary, and without limiting the power of the Board of Trustees
to amend this Declaration of Trust, the Board of Trustees shall have the power
to amend this Declaration of Trust, at any time and from time to time, in such
manner as the Board of Trustees may determine in their sole discretion, without
the need for action by any Shareholder, so as to add to, delete, replace or
otherwise modify any provisions relating to the Shares contained in this
Declaration of Trust, provided that before adopting any such amendment without
approval of the Shareholders, the Board of Trustees shall determine that it is
consistent with the fair and equitable treatment of all Shareholders or that
approval of the Shareholders is not required by the 1940 Act or other applicable
law. If Shares of any Portfolio have been issued, except as otherwise provided
herein, approval of the Shareholders of such Portfolio shall be required to
adopt any amendments to this Declaration of Trust which would adversely affect
to a material degree the rights and preferences of the Shares of such Portfolio
or to increase or decrease the par value of the Shares of such Portfolio.
Section 5.8 PRINCIPAL TRANSACTIONS. Except to the extent prohibited by
applicable law, 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 such Trustee or officer is a member
acting as principal, or have any such dealings with any affiliated person of the
Trust, any Investment Manager, sub-adviser, Principal Underwriter or transfer
agent of the Trust or with any Interested Person of such affiliated person or
other person; and the Trust may employ any such affiliated person or other
person, or firm or company in which such affiliated person or other person
is an Interested Person, as broker, legal counsel, registrar, Investment
Manager, sub-adviser, Principal Underwriter, transfer agent, dividend disbursing
agent, custodian or in any other capacity upon customary terms.
ARTICLE 6
SERVICE CONTRACTS
Section 6.1 INVESTMENT MANAGER. The Trustees may, at any time and from
time to time, contract for exclusive or nonexclusive advisory, management
and, if applicable, administrative services for the Trust or for any Portfolio
with any Person; and any such contract may contain such other terms as the
Trustees may determine, including without limitation, authority for the
Investment Manager to determine from time to time without prior consultation
with the Trustees what investments shall be purchased, held, sold or exchanged
and what portion, if any, of the assets of the Trust shall be held uninvested
and to make changes in the Trust's investments, and such other responsibilities
as may specifically be delegated to such Person. The Trustees may authorize the
Investment Manager to employ, from time to time, one or more sub-advisers to
perform such of the acts and services of the Investment Manager, and upon such
terms and conditions, as may be agreed among the Trustees, the Investment
Manager and sub-adviser. Any reference in this Declaration of Trust to the
Investment Manager shall be deemed to include such sub-advisers, unless the
context otherwise requires.
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Section 6.2 PRINCIPAL UNDERWRITER. The Trustees may also, at any time
and from time to time, contract with any Persons, appointing such Persons
exclusive or nonexclusive distributor or Principal Underwriter for the Shares of
one or more of the Portfolios or other securities to be issued by the Trust.
Every such contract may contain such other terms as the Trustees may determine.
Section 6.3 OTHER SERVICE CONTRACTS. The Trustees are also empowered,
at any time and from time to time, to contract with any Persons, appointing such
Person(s) to serve as custodian(s), administrator(s), transfer agent(s) and/or
shareholder servicing agent(s) for the Trust or one or more of its Portfolios.
Every such contract shall comply with such terms as may be required by the
Trustees. The Trustees are further empowered, at any time and from time to time,
to contract with any Persons to provide such other services to the Trust or one
or more of the Portfolios, as the Trustees determine to be in the best interests
of the Trust and the applicable Portfolios.
Section 6.4 VALIDITY OF CONTRACTS. The fact that:
(a) any of the Shareholders, Trustees, or officers of the Trust
is a shareholder, director, officer, partner, trustee, employee, Manager,
adviser, Principal Underwriter, distributor, or affiliate or agent of or for any
Person with which an advisory, management or administration contract, or
Principal Underwriter's or distributor's contract, or transfer, shareholder
servicing or other type of service contract may be made, or
(b) any Person with which an advisory, management or
administration contract or Principal Underwriter's or distributor's contract, or
transfer, shareholder servicing or other type of service contract may be made
also has an advisory, management or administration contract, or Principal
Underwriter's or distributor's contract, or transfer, shareholder servicing or
other service contract, or has other business or interests with any other
Person, 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, PROVIDED approval of each such contract is made pursuant to the
applicable requirements of the 1940 Act.
ARTICLE 7
SHAREHOLDERS' VOTING POWERS AND MEETINGS
Section 7.1 VOTING POWERS. The Shareholders shall have the right to
vote only:
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(a) for removal of Trustees as provided in Section 4.2 hereof;
(b) with respect to such additional matters relating to the
Trust as may be required by applicable provisions of law, including the 1940
Act;
(c) with respect to matters specified in Section 10.2; and
(d) on such other matters as the Trustees may consider necessary
or desirable.
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. There shall be no cumulative voting in the election of
Trustees. Shares may be voted in person or by proxy. A proxy purporting to be
executed by or on behalf of a Shareholder shall be deemed valid unless
challenged at or prior to its exercise and the burden of proving invalidity
shall rest on the challenger.
Section 7.2 MEETINGS. Meetings of the Shareholders may be called by the
Trustees for the purposes described in Section 7.1 hereof. A meeting of
Shareholders may be held at any place designated by the Trustees. Written notice
of any meeting of Shareholders shall be given or caused to be given by the
Trustees by delivering personally or mailing such notice at least seven (7) days
before such meeting, postage prepaid, stating the time and place of the meeting,
to each Shareholder in accordance with Section 3.5. Whenever notice of a meeting
is required to be given to a Shareholder under this Declaration of Trust, a
written waiver thereof, executed before or after the meeting by such Shareholder
or his or her attorney thereunto authorized and filed with the records of the
meeting, or actual attendance at the meeting of Shareholders in person or by
proxy, shall be deemed equivalent to such notice.
Section 7.3 QUORUM AND REQUIRED VOTE. Except when a larger quorum is
required by the applicable provisions of the 1940 Act, forty percent (40%) of
the Shares entitled to vote on a matter shall constitute a quorum at a meeting
of the Shareholders. Any meeting of Shareholders may be adjourned from time to
time by a majority of the votes properly cast upon the question of adjourning a
meeting to another date and time, whether or not a quorum is present, and the
meeting may be held as adjourned within a reasonable time after the date set for
the original meeting without further notice. Subject to Section 3.4.4 and the
applicable provisions of the 1940 Act, when a quorum is present at any meeting,
a majority of the Shares voted shall decide any questions, except only a
plurality vote shall be necessary to elect Trustees.
Section 7.4 ACTION BY WRITTEN CONSENT. Any action taken by Shareholders
may be taken without a meeting if Shareholders holding a majority of the Shares
entitled to vote on the matter (or such larger proportion thereof as shall be
required by any express provision of this Declaration of Trust or by the
By-Laws) and holding a majority (or such larger proportion as aforesaid) of
the Shares of any Portfolio (or Class) entitled to vote separately on the matter
consent to the action in writing and such written consents are filed with the
records of the meetings of Shareholders. Such consent shall be treated for all
purposes as a vote taken at a meeting of Shareholders.
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Section 7.5 RECORD DATES. For the purpose of determining the
Shareholders who are entitled to vote or act at any meeting or any adjournment
thereof, the Trustees may fix a time, which shall be not more than one hundred
twenty (120) days before the date of any meeting of Shareholders, as the record
date for determining the Shareholders having the right to notice of and to vote
at such meeting and any adjournment thereof, and in such case only Shareholders
of record on such record date shall have such right, notwithstanding any
transfer of Shares on the books of the Trust after the record date. For the
purpose of determining the Shareholders who are entitled to receive payment of
any dividend or of any other distribution, the Trustees may fix a date, which
shall be before the date for the payment of such dividend or distribution, as
the record date for determining the Shareholders having the right to receive
such dividend or distribution. Nothing in this Section shall be construed as
precluding the Trustees from setting different record dates for different
Portfolios.
ARTICLE 8
NET ASSET VALUE, DISTRIBUTIONS, AND REDEMPTIONS
Section 8.1 DETERMINATION OF NET ASSET VALUE, NET INCOME, AND
DISTRIBUTIONS.
8.1.1 The Trustees, in their absolute discretion, may prescribe
and shall set forth in the By-laws or in a duly adopted resolution of the
Trustees such bases and time for determining the per Share net asset value
of the Shares of any Portfolio and the net income attributable to the Shares of
any Portfolio and the declaration and payment of dividends and distributions on
the Shares of any Portfolio, as they may deem necessary or desirable.
8.1.2 The Trustees may determine to maintain the net asset value
per Share of any Portfolio at a designated constant dollar amount and in
connection therewith may adopt procedures not inconsistent with the 1940 Act for
the continuing declarations of income attributable to that Portfolio or Class
thereof as dividends payable in additional Shares of that Portfolio or Class
thereof at the designated constant dollar amount and for the handing of any
losses attributable to that Portfolio or Class thereof. Such procedures may,
among other things, provide that in the event of any loss each Shareholder of a
Portfolio or Class thereof shall be deemed to have contributed to the capital of
the Trust attributable to that Portfolio or Class thereof such Shareholder's pro
rata portion of the total number of Shares required to be cancelled in order to
permit the net asset value per Share of that Portfolio or Class thereof to be
maintained, after reflecting such loss, at the designated constant dollar
amount. Each Shareholder of the Trust shall be deemed to have agreed, by such
Shareholder's investment in the Trust, to make the contribution referred to in
the preceding sentence in the event of any such loss.
Section 8.2 REDEMPTIONS AND REPURCHASES.
8.2.1 The Trust shall purchase such Shares as are offered by any
Shareholder for redemption, upon the presentation of a proper instrument of
transfer together with a request directed to the Trust or a Person designated by
the Trust that the Trust redeem such Shares or in accordance with such
procedures for redemption as the Trustees may from time to time authorize; and
the Trust will pay therefor the net asset value thereof, less any applicable
redemption fee and sales charge, in accordance with the By-Laws, the applicable
provisions of the 1940 Act or as further provided by resolution of the Trustees.
Payment for said Shares shall be made by the Trust to the Shareholder within
seven days after the date on which the request for redemption is received in
proper form. The obligation set forth in this Section 8.2 is subject to the
provision that in the event that any time the New York Stock Exchange (the
"EXCHANGE") is closed for other than weekends or holidays, or if permitted by
the rules of the Commission during periods when trading on the Exchange is
restricted or during any emergency which makes it impracticable for the Trust to
dispose of the investments of the applicable Portfolio or to determine fairly
the value of the net assets held with respect to such Portfolio or during any
other period permitted by order of the Commission for the protection of
investors, such obligations may be suspended or postponed by the Trustees.
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8.2.2 The redemption price may in any case or cases be paid in
cash or wholly or partly in kind in accordance with the 1940 Act if the Trustees
determine that such payment is advisable in the interest of the remaining
Shareholders of the Portfolio of which the Shares are being redeemed. Subject to
the foregoing, the selection and quantity of securities or other property so
paid or delivered as all or part of the redemption price shall be determined by
or under authority of the Trustees. In no case shall the Trust be liable for any
delay of any corporation or other Person in transferring securities selected for
delivery as all or part of any payment in kind.
Section 8.3 REDEMPTIONS AT THE OPTION OF THE TRUST. The Trust shall
have the right, at its option, at any time to redeem Shares of any Shareholder
at the net asset value thereof as described in Section 8.1 herein, less any
applicable redemption fee and sales charge, or as further provided by resolution
of Trustees: (a) if at such time such Shareholder owns Shares of any Portfolio
having an aggregate net asset value of less than a minimum value determined from
time to time by the Trustees; (b) to the extent that such Shareholder owns
Shares of a Portfolio equal to or in excess of a maximum percentage of the
outstanding Shares of such Portfolio determined from time to time by the
Trustees; (c) to the extent that such Shareholder owns Shares equal to or in
excess of a maximum percentage, determined from time to time by the Trustees, of
the outstanding Shares of the Trust; or (d) for any other reason to the extent
not prohibited by applicable law. The Trustees may also, at their option, call
for the redemption of Shares of any Shareholder 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 purpose for which the Trust was
established. In furtherance of the purposes of the Trust, if an officer or agent
of the Trust has determined that a Shareholder has engaged in frequent and
excessive trading in Shares of a Portfolio, the Trust may require such
Shareholder to redeem such Shareholder's Shares at the net asset value thereof
as described in Section 8.1, less any applicable redemption fee and sales
charge.
To the extent permitted by law, the Trustees may retain the proceeds of any
redemption of Shares required by them for payments of amounts due and owing by a
Shareholder to the Trust or any Portfolio.
Section 8.4 TRANSFER OF SHARES. Except to the extent that the Trustees
have provided by resolution that the Shares of a Portfolio are non-transferable,
the Trust shall transfer shares held of record by any Person to any other Person
upon receipt by the Trust or a Person designated by the Trust of a written
request therefore in such form and pursuant to such procedures as may be
approved by the Trustees.
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ARTICLE 9
LIMITATION OF LIABILITY; INDEMNIFICATION
Section 9.1 LIMITATION OF LIABILITY OF TRUSTEES AND OTHERS.
9.1.1 No Trustee, officer, employee or agent of the Trust shall
be subject to any personal liability whatsoever to any Person, other than the
Trust or its Shareholders for any act, omission or obligation of the Trust or
any Trustee; and all Persons shall look solely to the Trust Property for
satisfaction of claims of any nature arising in connection with the affairs of
the Trust. No Trustee, officer, employee or agent of the Trust shall be liable
to the Trust or to any Shareholder, Trustee, officer, employee, or agent of the
Trust for any action or failure to act (including without limitation the failure
to compel in any way any former or acting Trustee to redress any breach of
trust) except for his or her own bad faith, willful misfeasance, gross
negligence or reckless disregard of his or her duties involved in the conduct of
his or her office.
9.1.2 Without limiting Section 9.1.1, the appointment,
designation or identification of a Trustee as chairperson of the Board of
Trustees, a member or chairperson of a committee established by the Trustees, an
expert on any topic or in any area (including an audit committee financial
expert), or the lead independent Trustee, or any other special appointment,
designation or identification of a Trustee, shall not impose on that person any
duty, obligation or liability that is greater than the duties, obligations and
liabilities imposed on that person as a Trustee in the absence of the
appointment, designation or identification (except that the foregoing limitation
shall not apply to duties expressly imposed pursuant to the By-Laws, a committee
charter or a Trust policy statement), and no Trustee who has special skills or
expertise, or is appointed, designated or identified as aforesaid, shall be held
to a higher standard of care by virtue thereof. In addition, no appointment,
designation or identification of a Trustee as aforesaid shall affect in any way
that Trustee's rights or entitlement to indemnification.
9.1.3 Every note, bond, contract, instrument, certificate or
undertaking and every other act or thing whatsoever issued, executed or done by
or on behalf of the Trust or the Trustees or any of them in connection with the
Trust shall be conclusively deemed to have been issued, executed or done only in
or with respect to their or his or her capacity as Trustees or Trustee, and such
Trustees or Trustee shall not be personally liable thereon.
Section 9.2 INDEMNIFICATION.
9.2.1 Subject to Section 9.2.2, the Trust shall indemnify and
hold harmless each and every Trustee and officer of the Trust and each former
Trustee and officer of the Trust (each hereinafter referred to as a "Covered
Person") from and against any and all claims, demands, costs, losses, expenses,
and damages whatsoever arising out of or related to such Covered Person's
performance of his or her duties as a Trustee or officer of the Trust or
otherwise relating to any act, omission, or obligation of the Trust.
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9.2.2 Indemnification pursuant to Section 9.2.1 shall be provided
to a Covered Person if:
(a) the court or other body before which the proceeding was
brought determines, in a final decision on the merits, that the Covered Person
was not liable by reason of bad faith, willful misfeasance, gross negligence or
reckless disregard of the duties involved in the conduct of that individual's
office; or
(b) in the event of a settlement involving a payment by a
Trustee, or officer or other disposition not involving a final adjudication as
provided in paragraph (a) above resulting in a payment by a Covered Person,
there has been either a determination that such Covered Person did not engage in
bad faith, willful misfeasance, gross negligence or reckless disregard of the
duties involved in the conduct of that individual's office by the court or other
body approving the settlement or other disposition or a reasonable
determination, based upon a review of readily available facts (as opposed to a
full trial-type inquiry) that that individual did not engage in such conduct:
(i) by vote of a majority (as defined below) of the
Disinterested Trustees (as defined below) acting on the matter (provided that a
majority of the Disinterested Trustees then in office act on the matter); or
(ii) by written opinion of legal counsel chosen by a
majority of the Trustees and determined by them in their reasonable judgment to
be independent.
9.2.3 The rights of indemnification herein provided may be
insured against by policies maintained by the Trust, shall be severable, shall
not affect any other rights to which any Covered Person may now or hereafter be
entitled, shall continue as to a person who has ceased to be a Covered Person
and shall inure to the benefit of the heirs, executors and administrators of
such person. Nothing contained herein shall affect any rights to indemnification
to which personnel, including Covered Persons, may be entitled by contract or
otherwise under law.
9.2.4 Expenses of preparation and presentation of a defense to
any claim, action, suit, or proceeding of the character described in Section
9.2.1 shall be advanced by the Trust prior to final disposition thereof upon
receipt of an undertaking by or on behalf of the Covered Person to repay such
amount if it is ultimately determined that the Covered Person is not entitled to
indemnification under this Section 9.2, provided that either:
(a) such undertaking is secured by a surety bond or some other
appropriate security or the Trust shall be insured against losses arising out of
any such advances; or
(b) a majority of the Disinterested Trustees acting on the
matter (provided that a majority (as defined below) of the Disinterested
Trustees then in office act on the matter) or legal counsel selected as provided
in Section 9.2.2(b)(ii) above in a written opinion, shall determine, based upon
a review of readily available facts (as opposed to a full trial-type inquiry),
that there is reason to believe that the Covered Person ultimately will be found
entitled to indemnification.
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9.2.5 As used in this Section 9.2 in relation to any claim for
indemnification or advances of expenses in relation to any claim, action, suit,
or proceeding, a "Disinterested Trustee" is one (a) who is not an "Interested
Person" of the Trust (including anyone who has been exempted from being an
"Interested Person" by any rule, regulation or order of the Commission), and (b)
against whom neither such claim, action, suit or proceeding nor another claim,
action, suit or proceeding on the same or similar grounds is then or had been
pending.. For avoidance of doubt, for purposes of Section 9.2.2 and 9.2.4, a
vote of the majority of the Disinterested Trustees will be considered to include
the single vote of one Disinterested Trustee, when the number of Disinterested
Trustees on the Board at the time of the vote is one.
9.2.6 In making a determination under Section 9.2.2(b) as to
whether a Covered Person engaged in the conduct described therein, or under
Section 9.2.4(b) as to whether there is reason to believe that a Covered Person
ultimately will be found entitled to indemnification, the Disinterested Trustees
or legal counsel making the determination shall afford the Covered Person a
rebuttable presumption that the Covered Person has not engaged in bad faith,
willful misfeasance, gross negligence or reckless disregard of the duties
involved in the conduct of the Covered Person's office.
Section 9.3 TRUSTEE'S GOOD FAITH ACTION, EXPERT ADVICE, NO BOND OR
SURETY. The exercise by the Trustees of their powers hereunder shall be
binding upon everyone interested in or dealing with the Trust. The Trustees,
officers, employees, and agents of the Trust shall not be liable for errors of
judgment or mistakes of fact or law. Each Trustee, officer, employee, and agent
of the Trust shall, in the performance of his or her duties, be under no
liability and fully and completely justified and protected with regard to any
act or any failure to act resulting from reliance in good faith upon the books
of account or other records of the Trust, upon advice of counsel, or upon
reports made to the Trust by any of its officers or employees or by any
Investment Manager, the Principal Underwriters, any transfer agent, custodian,
any shareholder servicing agent, selected dealers, accountants, appraisers or
other experts or consultants selected with reasonable care by the Trustees,
officers, employees, or agents of the Trust, regardless of whether such expert
or consultant may also be a Trustee. The Trustees shall not be required to give
any bond as such, nor any surety if a bond is required.
Section 9.4 LIABILITY OF THIRD PERSONS DEALING WITH TRUSTEES. No Person
dealing with the Trustees shall be bound to make any inquiry concerning the
validity of any transaction made or to be made by the Trustees or to see to
the application of any payments made or property transferred to the Trust or
upon its order.
Section 9.5 INSURANCE. The Trustees shall be entitled and empowered to
the fullest extent permitted by law to purchase with Trust assets insurance for
liability and for all expenses reasonably incurred or paid or expected to be
paid by any Covered Person in connection with any claim, action, suit or
proceeding in which he or she becomes involved by virtue of his or her capacity
or former capacity with the Trust.
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Section 9.6 DERIVATIVE ACTIONS. No Shareholder shall have the right to
bring or maintain any court action, proceeding or claim in the right of the
Trust or any Portfolio or Class thereof to recover a judgment in its favor
unless (a) Shareholders holding at least ten percent (10%) of the outstanding
Shares of the Trust, Portfolio or Class, as applicable, join in the bringing of
such court action, proceeding or claim, and (b) the bringing or maintenance of
such court action, proceeding or claim is otherwise in accordance with Section
3816 of the Delaware Act. In addition to the requirements of Section 3816 of the
Delaware Act, a Shareholder may bring a derivative action on behalf of the Trust
with respect to a Portfolio or Class only if the following conditions are met:
(a) the Shareholder or Shareholders must make a pre-suit demand upon the
Trustees to bring the subject action unless an effort to cause the Trustees to
bring such an action is not likely to succeed; and a demand on the Trustees
shall only be deemed not likely to succeed and therefore excused if a majority
of the Trustees, or a majority of any committee established to consider the
merits of such action, has a personal financial interest in the transaction at
issue, and a Trustee shall not be deemed interested in a transaction or
otherwise disqualified from ruling on the merits of a Shareholder demand by
virtue of the fact that such Trustee receives remuneration for his service as a
Trustee of the Trust or as a trustee or director of one or more investment
companies that are under common management with or otherwise affiliated with the
Trust; and (b) unless a demand is not required under clause (a) of this
sentence, the Trustees must be afforded a reasonable amount of time to consider
such Shareholder request and to investigate the basis of such claim; and the
Trustees shall be entitled to retain counsel or other advisors in considering
the merits of the request and shall require an undertaking by the Shareholder(s)
making such request to reimburse the Trust for the expense of any such advisors
in the event that the Trustees determine not to bring such action. For purposes
of this Section 9.6, the Trustees may designate a committee of one Trustee to
consider a Shareholder demand if necessary to create a committee with a majority
of Trustees who do not have a personal financial interest in the transaction at
issue.
Section 9.7 MODIFICATIONS OF THIS ARTICLE. Any repeal or modification
of this Article 9 by the Shareholders of the Trust, or adoption or modification
of any other provision of this Declaration of Trust or By-laws inconsistent with
this Article 9, shall be prospective only, to the extent that such repeal or
modification would, if applied retrospectively, adversely affect any limitation
on the liability of any Covered Person or indemnification available to any
Covered Person with respect to any act or omission which occurred prior to such
repeal, modification or adoption.
ARTICLE 10
TERMINATION; MERGER; REORGANIZATION
Section 10.1 TERMINATION OF TRUST OR PORTFOLIO.
10.1.1 Unless terminated as provided herein, the Trust shall
continue without limitation of time. The Trust may be terminated at any time by
the Trustees without shareholder approval upon sixty (60) days prior written
notice to the Shareholders. Any Portfolio or Class may be terminated at any time
without shareholder approval by the Trustees upon sixty (60) days prior written
notice to the Shareholders of that Portfolio or Class.
10.1.2 Upon termination of the Trust (or any Portfolio or Class,
as the case may be), after paying or otherwise providing for all charges, taxes,
expenses and liabilities held, severally, with respect to each Portfolio or
Class (or the applicable Portfolio or Class, as the case may be), whether due or
accrued or anticipated as may be determined by the Trustees, the Trust shall, in
accordance with such procedures as the Trustees consider appropriate, reduce the
remaining assets held, severally, with respect to each Portfolio or Class (or
the applicable Portfolio or Class, as the case may be), to distributable form in
cash or shares or other securities, and any combination thereof, and distribute
the proceeds held with respect to each Portfolio or Class (or the applicable
Portfolio or Class, as the case may be), (a) to the Shareholders of a Portfolio
or Class not taxable as a partnership for federal income tax purposes, pro rata
according to the number of Shares of that Portfolio or Class held by the several
Shareholders on the date of termination and, (b) to the Shareholders of a
Portfolio or Class, taxable as a partnership for federal income tax purposes, in
accordance with the positive Book Capital Account balances of the Shareholders.
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Section 10.2 MERGER AND CONSOLIDATION. The Trustees may cause (a) the
Trust or one or more of its Portfolios to the extent consistent with applicable
law to be merged into or consolidated with another trust, series of another
trust or other Person, (b) the Shares of the Trust or any Portfolio to be
converted into beneficial interests in another trust (or series thereof), (c)
the Shares to be exchanged for assets or property under or pursuant to any state
or federal statute to the extent permitted by law or (d) a sale of assets of the
Trust or one or more of its Portfolios. Such merger or consolidation, Share
conversion, Share exchange or sale of assets must be authorized by vote as
provided in Article 7 herein; PROVIDED that 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 merger or consolidation,
Share conversion, Share exchange, or sale of assets including the power to
create one or more separate 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 into beneficial
interests in such separate business trust or trusts or series thereof.
Section 10.3 REORGANIZATION. Notwithstanding Section 10.2, the Trustees
may, without the vote or consent of Shareholders, cause to be organized
or assist in organizing a corporation or corporations under the laws of any
jurisdiction, or any other trust, partnership, limited liability company,
association or other organization, or any series or class of any thereof, to
acquire all or a portion of the Trust Property (or all or a portion of the Trust
Property held with respect to a particular Portfolio or allocable to a
particular Class) or to carry on any business in which the Trust shall directly
or indirectly have any interest (any of the foregoing, a "Successor Entity"),
and to sell, convey and transfer such Trust Property to any such Successor
Entity in exchange for the shares or securities thereof or otherwise, and to
lend money to, subscribe for the shares or securities of, and enter into any
contracts with any such Successor Entity in which the Trust holds or is about to
acquire shares or any other interest. The Trustees may also, without the vote or
consent of Shareholders, cause a merger or consolidation between the Trust and
any Successor Entity if and to the extent permitted by law. The Trustees shall
provide written notice to affected Shareholders of each transaction pursuant to
this Section 10.3. Such transactions may be effected through share-for-share
exchanges, transfers or sales of assets, in-kind redemptions and purchases,
exchange offers, or any other method approved by the Trustees.
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ARTICLE 11
MISCELLANEOUS
Section 11.1 AMENDMENTS. The Trustees may amend this Declaration of
Trust by making an amendment to this Declaration of Trust or to Schedule A
hereto, an agreement supplemental hereto, or an amended and restated trust
instrument. Any such amendment, having been approved by a majority of the
Trustees then holding office, shall become effective, unless otherwise provided
by such Trustees, upon execution by a duly authorized officer of the Trust. The
Certificate of Trust of the Trust may be restated and/or amended by a similar
procedure, and any such restatement and/or amendment shall be effective
immediately upon filing with the Office of the Secretary of State of the State
of Delaware or upon such future date as may be stated therein.
Section 11.2 FILING OF COPIES. The original or a copy of this
Declaration of Trust and of each restatement and/or amendment hereto shall be
kept at the office of the Trust where it may be inspected by any Shareholder.
Anyone dealing with the Trust may rely on a certificate by an officer of the
Trust as to whether or not any such restatements and/or amendments have been
made and as to any matters in connection with the Trust hereunder; and, with the
same effect as if it were the original, may rely on a copy certified by an
officer of the Trust to be a copy of this Declaration of Trust or of any such
restatements and/or amendments.
Section 11.3 REFERENCES AND HEADINGS. In this Declaration of Trust and
in any such restatements and/or amendment, references to this Declaration of
Trust, and all expressions like "herein," "hereof" and "hereunder," shall be
deemed to refer to this Declaration of Trust as amended or affected by any such
restatements and/or amendments. Headings are placed herein for convenience of
reference only and shall not be taken as a part hereof or control or affect the
meaning, construction or effect of this Declaration of Trust. Whenever the
singular number is used herein, the same shall include the plural; and the
neuter, masculine and feminine genders shall include each other, as applicable.
Section 11.4 APPLICABLE LAW. This Declaration of Trust is created under
and is to be governed by and construed and administered according to the laws of
the State of Delaware and the Delaware Act. The Trust shall be a Delaware
statutory trust pursuant to the Delaware Act, and without limiting the
provisions hereof, the Trust may exercise all powers which are ordinarily
exercised by such a statutory trust.
Section 11.5 PROVISIONS IN CONFLICT WITH LAW OR REGULATIONS.
11.5.1 The provisions of this Declaration of Trust are severable,
and if the Trustees shall determine, with the advice of counsel, that any of
such provisions is in conflict with the 1940 Act, the regulated investment
company provisions of the Internal Revenue Code of 1986, as amended, or with
other applicable laws and regulations, the conflicting provision shall be deemed
never to have constituted a part of this Declaration of Trust; provided,
however, that such determination shall not affect any of the remaining
provisions of this Declaration of Trust or render invalid or improper any action
taken or omitted prior to such determination.
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11.5.2 If any provision of this Declaration of Trust 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 provision in any other jurisdiction or any
other provision of this Declaration of Trust in any jurisdiction.
Section 11.6 STATUTORY TRUST ONLY. It is the intention of the Trustees
to create a statutory trust pursuant to the Delaware Act, and thereby to create
only the relationship of trustee and beneficial owners within the meaning of
such act between the Trustees and each Shareholder. Except to the extent
provided by resolution of the Trustees establishing a Portfolio intended to be
classified as a partnership for federal income tax purposes, it is not the
intention of the Trustees to create a general partnership, limited partnership,
joint stock association, corporation, bailment, joint venture, or any form of
legal relationship other than a statutory trust pursuant to the Delaware Act,
and except as so provided in such resolution, nothing in this Declaration of
Trust shall be construed to make the Shareholders, either by themselves or with
the Trustees, partners or members of a joint stock association.
Section 11.7 COUNTERPARTS. This Declaration of Trust may be executed in
any number of counterparts, each of which shall be deemed an original and all of
which, when taken together, shall be deemed to constitute a single document.
IN WITNESS WHEREOF, the Trustees named below do hereby make and enter into
this Declaration of Trust of THE ROXBURY FUNDS as of March 20, 2007.
/s/ Xxxxx X. Xxx
-----------------------------------------------------
Xxxxx X. Xxx, as Trustee and Not Individually
/s/ Xxxxxxx Xxxxxx
-----------------------------------------------------
Xxxxxxx Xxxxxx, as Trustee and Not Individually
/s/ Xxxx Xxxxxxxx
-----------------------------------------------------
Xxxx Xxxxxxxx, as Trustee and Not Individually
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SCHEDULE A
TO
AMENDED AND RESTATED AGREEMENT AND DECLARATION OF TRUST
OF
THE ROXBURY FUNDS
SCHEDULE OF PORTFOLIOS AND CLASSES
------------------------------------------- ------------------------------------
PORTFOLIO CLASS OF SHARES
--------- ---------------
------------------------------------------- ------------------------------------
Roxbury Mid-Cap Fund Investor Shares
------------------------------------------- ------------------------------------
Roxbury Mid-Cap Fund Institutional Shares
------------------------------------------- ------------------------------------
Roxbury Small-Cap Growth Fund Investor Shares
------------------------------------------- ------------------------------------
Roxbury Small-Cap Growth Fund Institutional Shares
------------------------------------------- ------------------------------------
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