FORM OF MARKETING AND STRUCTURING FEE AGREEMENT
Exhibit 99.(k)(7)
FORM OF MARKETING AND STRUCTURING
FEE AGREEMENT
FEE AGREEMENT
[Date of Underwriting Agreement]
Xxxxxx Xxxxxxx & Co. Incorporated
0000 Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
0000 Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
This agreement is between Xxxxx Xxxxx Management (the “Company”) and Xxxxxx Xxxxxxx &
Co. Incorporated (“Xxxxxx Xxxxxxx”) with respect to the Xxxxx Xxxxx Tax-Managed Global
Diversified Equity Income Fund (the “Fund”).
1. Fee. (a) In consideration of advice to the Company relating to, but not limited
to, the design and structuring of, and marketing assistance with respect to, the Fund and the
distribution of its common shares of beneficial interest, par value $.01 per share (the
“Shares”), the Company shall pay a fee to Xxxxxx Xxxxxxx calculated at 1.25% of the
aggregate price to public of the Shares sold by Xxxxxx Xxxxxxx in the Fund’s initial public
offering (the “Offering”) (including any Shares over-allotted by Xxxxxx Xxxxxxx in the
Offering regardless of whether the over-allotment option in the Offering is exercised) (the
“Fee”), equal to $ 1. Subject to paragraph (b), the Fee paid to Xxxxxx
Xxxxxxx shall not exceed %2 of the total price to the public of the Shares sold by
the Fund in the Offering.
(b) Notwithstanding paragraph (a), in the event that the Company (or the Fund or any person or
entity affiliated with the Company, the Fund or any subadviser to the Fund or acting on behalf of
or at the direction of any of the foregoing) compensates or agrees to compensate any other broker
or dealer participating in the Offering (each, an “Other Broker”) for any services or
otherwise in connection with the Offering or with respect to the Fund or its Shares (excluding for
this purpose any compensation paid directly to the entire underwriting syndicate, as a group,
pursuant to the principal underwriting agreement (the “Underwriting Agreement”) relating to
the Offering), whether such compensation be denominated a fee, an expense reimbursement, a set-off,
a credit or otherwise, except for compensation in the form of a trailing fee which is payable to an
Other Broker on a periodic basis after the Offering for distribution and/or services in connection
with the Offering, (such compensation with respect to any Other Broker, such Other Broker’s
“Other Compensation”), then the amount of the Fee shall be increased as and to the extent
necessary so that the Fee
| 1 | (1.25%)*(dollar value of Shares sold by Xxxxxx Xxxxxxx, including over-allotments) | |
| 2 | (dollar value of Fee)/(aggregate price to public of firm Shares as reflected in table on prospectus cover page)*100% |
payable to Xxxxxx Xxxxxxx hereunder, expressed as a percentage of the aggregate price to the
public of the Shares sold by Xxxxxx Xxxxxxx in the Offering (including any Shares over-allotted by
Xxxxxx Xxxxxxx in the Offering regardless of whether the over-allotment option in the Offering is
exercised), is no less than the Other Compensation, expressed as a percentage of the aggregate
price to public of the Shares sold by such Other Broker in the Offering.
(c) The Company shall pay the Fee to Xxxxxx Xxxxxxx before the closing of the purchase and
sale of the Shares pursuant to the Underwriting Agreement on [first closing date] by wire transfer
to the order of Xxxxxx Xxxxxxx. The Company acknowledges that the Fee is in addition to any
compensation Xxxxxx Xxxxxxx earns in connection with its role as an underwriter to the Fund in its
initial public offering, which services are distinct from and in addition to the marketing and
structuring services described above.
2. Term. This Agreement shall terminate upon payment of the entire amount of the Fee,
as specified in Section 1 hereof.
3. Indemnification. The Company agrees to the indemnification and other agreements
set forth in the Indemnification Agreement attached hereto, the provisions of which are
incorporated herein by reference and shall survive the termination, expiration or supersession of
this Agreement.
4. Not an Investment Advisor. The Company acknowledges that Xxxxxx Xxxxxxx is not
providing any advice hereunder as to the value of securities or regarding the advisability of
purchasing or selling any securities for the Fund’s portfolio. No provision of this Agreement
shall be considered as creating, nor shall any provision create, any obligation on the part of
Xxxxxx Xxxxxxx, and Xxxxxx Xxxxxxx is not agreeing hereby, to: (i) furnish any advice or make any
recommendations regarding the purchase or sale of portfolio securities; or (ii) render any
opinions, valuations or recommendations of any kind or to perform any such similar services.
5. Not Exclusive. Nothing herein shall be construed as prohibiting Xxxxxx Xxxxxxx or
its affiliates from acting as an underwriter or financial advisor or in any other capacity for any
other persons (including other registered investment companies or other investment managers).
Neither this Agreement nor the performance of the services contemplated hereunder shall be
considered to constitute a partnership, association or joint venture between Xxxxxx Xxxxxxx and the
Company. In addition, nothing in this Agreement shall be construed to constitute Xxxxxx Xxxxxxx as
the agent or employee of the Company or the Company as the agent or employee of Xxxxxx Xxxxxxx, and
neither party shall make any representation to the contrary. It is understood that Xxxxxx Xxxxxxx
is engaged hereunder solely to provide the services described above to the Company and that Xxxxxx
Xxxxxxx is not acting as an agent or fiduciary of, and Xxxxxx Xxxxxxx shall not have any duties or
liability to, the current or future partners, members or equity owners of the Company or any other
third party in connection
2
with its engagement hereunder, all of which are hereby expressly waived to the extent the
Company has the authority to waive such duties and liabilities.
6. Assignment. This Agreement may not be assigned by either party without prior
written consent of the other party.
7. Amendment; Waiver. No provision of this Agreement may be amended or waived except
by an instrument in writing signed by the parties hereto.
8. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York applicable to contracts executed in and to be performed in
that state.
9. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be an original, and all of which, when taken together, shall constitute one
agreement. Delivery of an executed signature page of this Agreement by facsimile transmission
shall be effective as delivery of a manually executed counterpart hereof.
This Agreement shall be effective as of the date first written above.
[Signature page follows]
3
| Very truly yours, XXXXX XXXXX MANAGEMENT |
||||
| By: | ||||
| Name: | ||||
| Title: | ||||
Accepted and agreed to as of the
date first above written:
date first above written:
| XXXXXX XXXXXXX & CO. INCORPORATED |
|||||
| By: | |||||
| Name: | |||||
| Title: | |||||
[Signature page to Marketing and Structuring Fee Agreement]
INDEMNIFICATION AGREEMENT
[Date of Underwriting Agreement]
Xxxxxx Xxxxxxx & Co. Incorporated
0000 Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
0000 Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
In connection with the engagement of Xxxxxx Xxxxxxx & Co. Incorporated (“Xxxxxx
Xxxxxxx”) to advise and assist the undersigned (together with its affiliates and subsidiaries,
referred to as the “Company”) with the matters set forth in the Marketing and Structuring
Fee Agreement dated [Date of Underwriting Agreement] between the Company and Xxxxxx Xxxxxxx (the
“Marketing and Structuring Fee Agreement”), in the event that Xxxxxx Xxxxxxx becomes
involved in any capacity in any claim, suit, action, proceeding, investigation or inquiry
(including, without limitation, any shareholder or derivative action or arbitration proceeding)
with respect to the services performed pursuant to and in accordance with the Marketing and
Structuring Fee Agreement, the Company has agreed to indemnify and hold harmless Xxxxxx Xxxxxxx and
Xxxxxx Xxxxxxx’x affiliates and their respective officers, directors, employees and agents and each
other person, if any, controlling Xxxxxx Xxxxxxx or any of Xxxxxx Xxxxxxx’x affiliates (Xxxxxx
Xxxxxxx and each such other person being an “Indemnified Person”) from and against any
losses, claims, damages or liabilities related to, arising out of or in connection with the
activities (the “Activities”) performed by any Indemnified Person in connection with, or
arising out of, or based upon, the Marketing and Structuring Fee Agreement and/or any action taken
by any Indemnified Person in connection therewith (including, without limitation, any presentation
given by the Company and an Indemnified Person relating to the common shares of beneficial
interest, par value $.01 per share (the “Shares”) of the Xxxxx Xxxxx Tax-Managed Global
Diversified Equity Income Fund (the “Fund”)), and will reimburse each Indemnified Person
for all expenses (including fees and expenses of counsel) as they are incurred in connection with
investigating, preparing, pursuing or defending any claim, suit, action, proceeding, investigation
or inquiry related to, arising out of or in connection with the Activities, whether or not pending
or threatened and whether or not any Indemnified Person is a party. The Company will not, however,
be responsible for any losses, claims, damages, liabilities (or expenses relating thereto) that are
finally judicially determined to have resulted from the bad faith or gross negligence of any
Indemnified Person. The Company also agrees that no Indemnified Person shall have any liability
(whether direct or indirect, in contract or tort or otherwise) to the Company for or in connection
with the Activities, except for any such liability for losses, claims, damages or liabilities
incurred by the Company that are finally judicially determined to have resulted from the bad faith
or gross negligence of such Indemnified Person.
Notwithstanding the foregoing, in no event shall the Company be responsible for any losses,
claims, damages or liabilities to any Indemnified Person arising from any such claim, suit, action,
proceeding, investigation or inquiry in excess of the gross proceeds received by the Fund from the
initial public offering of the Shares of the Fund (the “Offering”); provided, however, that
the Company shall, as set forth above, indemnify and be responsible for, regardless of the gross
proceeds received by the Fund from the Offering, all expenses (including fees and expenses of
counsel) incurred in connection with investigating, preparing, pursuing or defending any claim,
suit, action, proceeding, investigation or inquiry related to, arising out of or in connection with
the Activities, whether or not pending or threatened and whether or not any Indemnified Person is a
party, as set forth above.
The Company will not, without Xxxxxx Xxxxxxx’x prior written consent, settle, compromise,
consent to the entry of any judgment in or otherwise seek to terminate any claim, suit, action,
proceeding, investigation or inquiry in respect of which indemnification may be sought hereunder
(whether or not any Indemnified Person is a party thereto) unless such settlement, compromise,
consent or termination includes a release of each Indemnified Person from any liabilities arising
out of such claim, suit, action, proceeding, investigation or inquiry. No Indemnified Person
seeking indemnification, reimbursement or contribution under this agreement (the
“Indemnification Agreement”) will, without our prior written consent, settle, compromise,
consent to the entry of any judgment in or otherwise seek to terminate any claim, suit, action,
proceeding, investigation or inquiry referred to in the preceding paragraph.
If such indemnification were not to be available for any reason, the Company agrees to
contribute to the losses, claims, damages, liabilities and expenses involved (i) in the proportion
appropriate to reflect the relative benefits received or sought to be received by the Company
(including the net proceeds from the Shares sold by Xxxxxx Xxxxxxx in the Offering before deducting
expenses) and its partners and affiliates and other constituencies, on the one hand, and Xxxxxx
Xxxxxxx, on the other hand, in the matters contemplated by the Marketing and Structuring Fee
Agreement or (ii) if (but only if and to the extent) the allocation provided for in clause (i) is
for any reason held unenforceable, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) but also the relative fault of the Company and its
partners and affiliates and other constituencies, on the one hand, and the party entitled to
contribution, on the other hand, as well as any other relevant equitable considerations. The
Company agrees that for the purposes of this paragraph the relative benefits received, or sought to
be received, by the Company and its partners and affiliates, on the one hand, and the party
entitled to contribution, on the other hand, of a transaction as contemplated shall be deemed to be
in the same proportion that the total value received or paid or contemplated to be received or paid
by the Company or its partners or affiliates and other constituencies, as the case may be, as a
result of or in connection with the transaction (whether or not
2
consummated) for which Xxxxxx Xxxxxxx has been retained to perform financial services bears to
the fees paid to Xxxxxx Xxxxxxx under the Marketing and Structuring Fee Agreement; provided that in
no event shall the Company contribute less than the amount necessary to assure that Xxxxxx Xxxxxxx
is not liable for losses, claims, damages, liabilities and expenses in excess of the amount of fees
actually received by Xxxxxx Xxxxxxx pursuant to the Marketing and Structuring Fee Agreement.
Relative fault shall be determined by reference to, among other things, whether any alleged untrue
statement or omission or any other alleged conduct relates to information provided by the Company
or other conduct by the Company (or its employees or other agents), on the one hand, or by Xxxxxx
Xxxxxxx, on the other hand.
This Indemnification Agreement, together with the Marketing and Structuring Fee Agreement, any
contemporaneous written agreements and any prior written agreements (to the extent not superseded
by this agreement) that relate to the Offering of the Shares, represents the entire agreement
between the Company and the Indemnified Parties with respect to the marketing and structuring fee
paid to Xxxxxx Xxxxxxx under the Marketing and Structuring Fee Agreement.
The Company acknowledges that in connection with the Offering of the Shares: (i) Xxxxxx
Xxxxxxx has acted at arms length, is not an agent of, and owes no fiduciary duties to, the Company,
the Fund or any person affiliated with the Fund or the Company, (ii) Xxxxxx Xxxxxxx owes the
Company only those duties and obligations set forth in this Indemnification Agreement and (iii)
Xxxxxx Xxxxxxx may have interests that differ from those of the Company. The Company waives to the
full extent permitted by applicable law any claims any of the Company, the Fund or any person
affiliated with the Fund or the Company may have against Xxxxxx Xxxxxxx arising from an alleged
breach of fiduciary duty in connection with the offering of the Shares.
The provisions of this Indemnification Agreement shall apply to the Activities and any
modification thereof and shall remain in full force and effect regardless of any termination or the
completion of Xxxxxx Xxxxxxx’x services under the Marketing and Structuring Fee Agreement.
This Indemnification Agreement may not be assigned by either party without prior written
consent of the other party. No provision of this Indemnification Agreement may be amended or
waived except by an instrument in writing signed by the parties hereto. This Indemnification
Agreement shall be governed by and construed in accordance with the laws of the State of New York
applicable to contracts executed in and to be performed in that state. This Indemnification
Agreement may be executed in any number of counterparts, each of which shall be an original, and
all of which, when taken together, shall constitute one agreement. Delivery of an executed
signature page of this Indemnification Agreement by facsimile transmission shall be effective as
delivery of a manually executed counterpart hereof.
3
| Very truly yours, XXXXX XXXXX MANAGEMENT |
||||
| By: | ||||
| Name: | ||||
| Title: | ||||
Accepted and agreed to as of the
date first above written:
date first above written:
| XXXXXX XXXXXXX & CO. INCORPORATED |
||||
| By: | ||||
| Name: | ||||
| Title: | ||||
[Signature page to Indemnification Agreement]
