THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST 4,000,000 Shares, [ ]% Series A Cumulative Preferred Stock PURCHASE AGREEMENT
Exhibit 99(h)
THE GABELLI GLOBAL GOLD, NATURAL RESOURCES & INCOME TRUST
4,000,000 Shares, [ ]% Series A Cumulative Preferred Stock
October [ ], 2007
CITIGROUP GLOBAL MARKETS INC.
XXXXXXX XXXXX & CO.
XXXXXXX XXXXX, XXXXXX, XXXXXX & XXXXX INCORPORATED
as Representatives of the several Underwriters
c/o Citigroup Global Markets Inc.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
XXXXXXX XXXXX & CO.
XXXXXXX XXXXX, XXXXXX, XXXXXX & XXXXX INCORPORATED
as Representatives of the several Underwriters
c/o Citigroup Global Markets Inc.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
The Gabelli Global Gold, Natural Resources & Income Trust, a Delaware statutory trust (the
“Fund”), and Gabelli Funds, LLC, a limited liability company organized under the laws of the state
of New York (the “Investment Adviser”), confirm their agreement with Citigroup Global Markets Inc.
(“Citigroup”), Xxxxxxx Xxxxx & Co. and Xxxxxxx Lynch, Xxxxxx, Xxxxxx & Xxxxx Incorporated (“Xxxxxxx
Xxxxx”), and each of the other Underwriters named in Schedule A hereto (collectively, the
“Underwriters,” which term shall also include any underwriter substituted as hereinafter provided
in Section 10 hereof), for whom Xxxxxxx Xxxxx and Citigroup are acting as Representatives (in such
capacity, the “Representatives”), with respect to the issue and sale by the Fund and the purchase
by the Underwriters, acting severally and not jointly, of the respective number of shares set forth
in said Schedule A of an aggregate of 4,000,000 shares of the Fund’s Series A Cumulative Preferred
Stock (the “Securities”). The Securities will be authorized by, and subject to the terms and
conditions of, the Fund’s Amended and Restated Agreement and Declaration of Trust and the Statement
of Preferences for Preferred Shares, as amended and supplemented through October [ ], 2007
(collectively, the “Declaration of Trust”).
The Fund understands that the Underwriters propose to make a public offering of the Securities
as soon as the Representatives deem advisable after this Agreement has been executed and delivered.
The Fund has filed with the Securities and Exchange Commission (the “Commission”) a shelf
registration statement on Form N-2 (No. 333-143009 and No. 811-21698) covering the registration of
the Securities under the Securities Act of 1933, as amended (the “1933 Act”), including the related
preliminary prospectus or prospectuses (including the preliminary statement of additional
information incorporated by reference therein), and a notification on Form N-8A of registration
(the “1940 Act Notification”) of the Fund as an investment company under the Investment Company Act
of 1940, as amended (the “1940 Act”), and the rules and regulations of the Commission under the
1933 Act (the “1933 Act Regulations”) and the 1940 Act (the “1940 Act Regulations” and together
with the 1933 Act Regulations, the “Rules and Regulations”). The registration statement is
effective. Promptly
after execution and delivery of this Agreement, the Fund will prepare and file a prospectus in
accordance with the provisions of Rule 430B (“Rule 430B”) of the 1933 Act Regulations and Rule 497
(“Rule 497”) of the 1933 Act Regulations. The information included in any such prospectus that was
omitted from such registration statement at the time it became effective but that is deemed to be
part of and included in such registration statement pursuant to Rule 430B is referred to as “Rule
430B Information.” Each prospectus, including in each case any statement of additional information
incorporated therein by reference, used in connection with the offering of the Securities that
omitted Rule 430B Information is herein called a “preliminary prospectus.” Such registration
statement, at any given time, including the exhibits thereto and schedules thereto and the
amendments thereto at such time, is herein called the “Registration Statement.” The Registration
Statement at the time it originally became effective is herein called the “Original Registration
Statement.” The final prospectus (including any statement of additional information incorporated
by reference therein) in the form first furnished to the Underwriters for use in connection with
the offering of the Securities is herein called the “Prospectus.” For purposes of this Agreement,
all references to the Registration Statement, any preliminary prospectus or the Prospectus or any
amendment or supplement to any of the foregoing shall be deemed to include the copy filed with the
Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval system (“XXXXX”).
All references in this Agreement to financial statements and schedules and other information
which is “contained,” “included” or “stated” in the Registration Statement, any preliminary
prospectus or the Prospectus (or other references of like import) shall be deemed to mean and
include all such financial statements and schedules and other information which is incorporated by
reference in or otherwise deemed by 1933 Act Regulations to be a part of or included in the
Registration Statement, any preliminary prospectus or the Prospectus, as the case may be; and all
references in this Agreement to amendments or supplements to the Registration Statement, any
preliminary prospectus or the Prospectus shall be deemed to mean and include the filing of any
document under the Securities Exchange Act of 1934 (the “1934 Act”) which is incorporated by
reference in or otherwise deemed by 1933 Act Regulations to be a part of or included in the
Registration Statement, such preliminary prospectus or the Prospectus, as the case may be.
SECTION 1. Representations and Warranties.
(a) Representations and Warranties by the Fund and the Investment Adviser. The Fund and the
Investment Adviser jointly and severally represent and warrant to each Underwriter as of the date
hereof, the Applicable Time referred to in Section 1(a)(i) hereof and as of the Closing Time
referred to in Section 2(c) hereof, and agree with each Underwriter, as follows:
(i) Compliance with Registration Requirements. The Original Registration
Statement became effective under the 1933 Act on September 24, 2007 and no stop order
suspending the effectiveness of the Registration Statement has been issued under the 1933
Act, or order of suspension or revocation of registration pursuant to Section 8(e) of the
1940 Act, and no proceedings for any such purpose have been instituted or are pending or, to
the knowledge of the Fund or the Investment Adviser, are contemplated by the Commission, and
any request on the part of the Commission for additional information has been complied with.
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At the respective times the Original Registration Statement and any amendment thereto
became effective, at each deemed effective date with respect to the Underwriters pursuant to
Rule 430B(f)(2) of the 1933 Act Regulations and at the Closing Time, the Registration
Statement, the notification on Form N-8A and any amendments and supplements thereto complied
and will comply in all material respects with the requirements of the 1933 Act, the 1940 Act
and the Rules and Regulations and did not and will not contain an untrue statement of a
material fact or, except for the information included in the prospectus supplement relating
to the Securities contained in the Prospectus, omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading. Neither the
Prospectus nor any amendments or supplements thereto, at the time the Prospectus or any such
amendment or supplement was issued and at the Closing Time, included or will include an
untrue statement of a material fact or omitted or will omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading.
The Statutory Prospectus (as defined below) as of the Applicable Time and the
information included on Schedule C hereto as of the Applicable Time, all considered together
(collectively, the “General Disclosure Package”), did not include any untrue statement of a
material fact or omit to state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading.
As used in this subsection and elsewhere in this Agreement:
“Applicable Time” means [ ] p.m. (Eastern time) on October [ ], 2007 or such other
time as agreed by the Fund and the Representatives.
“Statutory Prospectus” as of any time means the prospectus relating to the Securities
that is included in the Registration Statement immediately prior to that time, including any
document incorporated by reference therein and any preliminary or other prospectus deemed to
be a part thereof.
Each preliminary prospectus (including the prospectus or prospectuses and statement of
additional information filed as part of the Original Registration Statement or any amendment
thereto) complied when so filed in all material respects with the 1933 Act Regulations and
each preliminary prospectus and the Prospectus delivered to the Underwriters for use in
connection with this offering was identical to the electronically transmitted copies thereof
filed with the Commission pursuant to XXXXX, except to the extent permitted by Regulation
S-T.
(ii) Incorporated Documents. The documents incorporated or deemed to be
incorporated by reference in the Registration Statement, the General Disclosure Package and
the Prospectus, when they became effective or at the time they were or hereafter are filed
with the Commission, complied and will comply in all material respects with the requirements
of the 1933 Act and the 1933 Act Regulations or the 1934 Act and the rules and regulations
of the Commission thereunder (the “1934 Act Regulations”), as applicable, and, when read
together with the other information in the Prospectus, (a) at the time the Original
Registration Statement became effective, (b) at the earlier of the
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time the Prospectus was first used and the date and time of the first contract of sale
of Securities in this offering and (c) at the Closing Time, did not and will not contain an
untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading.
(iii) Independent Accountants. The accountants who certified the financial
statements and supporting schedules included in the Registration Statement are independent
public accountants as required by the 1933 Act and the 1933 Act Regulations.
(iv) Financial Statements. The financial statements included in the
Registration Statement, the General Disclosure Package and the Prospectus, together with the
related schedules and notes, present fairly the financial position of the Fund at the dates
indicated and the statement of operations, stockholders’ equity and cash flows of the Fund
for the periods specified; said financial statements have been prepared in conformity with
generally accepted accounting principles (“GAAP”) applied on a consistent basis throughout
the periods involved. The supporting schedules, if any, present fairly in accordance with
GAAP the information required to be stated therein. The selected financial data and the
summary financial information included in the Prospectus present fairly the information
shown therein and have been compiled on a basis consistent with that of the audited
financial statements included in the Registration Statement.
(v) No Material Adverse Change. Since the respective dates as of which
information is given in the Registration Statement, the General Disclosure Package or the
Prospectus, except as otherwise stated therein, (A) there has been no material adverse
change in the condition, financial or otherwise, or in the earnings, business affairs or
business prospects of the Fund considered as one enterprise, whether or not arising in the
ordinary course of business (a “Material Adverse Effect”), (B) there have been no
transactions entered into by the Fund, other than those in the ordinary course of business,
which are material with respect to the Fund and (C) there has been no dividend or
distribution of any kind declared, paid or made by the Fund on any class of its capital
stock.
(vi) Good Standing of the Fund. The Fund has been duly organized and is
validly existing as a statutory trust in good standing under the laws of the State of
Delaware and has trust power and authority to own, lease and operate its properties and to
conduct its business as described in the Prospectus and the General Disclosure Package and
to enter into and perform its obligations under this Agreement; and the Fund is duly
qualified as a foreign trust to transact business and is in good standing in each other
jurisdiction in which such qualification is required, whether by reason of the ownership or
leasing of property or the conduct of business, except where the failure so to qualify or to
be in good standing would not result in a Material Adverse Effect.
(vii) No Subsidiaries. The Fund has no subsidiaries.
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(viii) Investment Company Status. The Fund is duly registered with the
Commission under the 1940 Act as a closed-end, non-diversified management investment
company, and, no order of suspension or revocation of such registration has been issued or
proceedings therefor initiated or to the Fund’s knowledge, threatened by the Commission.
(ix) Officers and Directors. No person is serving or acting as an officer,
trustee or investment adviser of the Fund except in accordance with the provisions of the
1940 Act and the 1940 Act Regulations and the Investment Advisers Act of 1940, as amended
(the “Advisers Act”), and the rules and regulations of the Commission promulgated under the
Advisers Act (the “Advisers Act Rules and Regulations”). Except as disclosed in the
Registration Statement, the Prospectus and the General Disclosure Package (or any amendment
or supplement to any of them), to the knowledge of the Fund or the Investment Adviser after
due inquiry, no trustee of the Fund is an “interested person” (as defined in the 1940 Act)
of the Fund or an “affiliated person” (as defined in the 1940 Act) of any Underwriter listed
in Schedule A hereto.
(x) Capitalization. The authorized, issued and outstanding capital stock of
the Fund is as set forth in the Prospectus and the General Disclosure Package as of the date
thereof under the caption “Description of the Shares”. All issued and outstanding shares of
capital stock of the Fund have been duly authorized and validly issued and are fully paid
and non-assessable; none of the outstanding shares of capital stock of the Fund was issued
in violation of the preemptive or other similar rights of any securityholder of the Fund.
(xi) Authorization of Agreement. This Agreement has been duly authorized,
executed and delivered by the Fund.
(xii) Authorization of Securities. The Securities have been duly authorized
and when issued and delivered against payment of the purchase price therefor as provided in
this Agreement, will be fully paid and nonassessable and free of any preemptive or similar
rights.
(xiii) Description of the Securities. The Securities will conform in all
material respects to the statements relating thereto contained in the Prospectus and the
General Disclosure Package and will be in substantially the form filed or incorporated by
reference, as the case may be, as an exhibit to the Registration Statement.
(xiv) Absence of Defaults and Conflicts. The Fund is not in violation of its
Certificate of Trust, Declaration of Trust or by-laws or in default in the performance or
observance of any obligation, agreement, covenant or condition contained in any contract,
indenture, mortgage, deed of trust, loan or credit agreement, note, lease or other agreement
or instrument to which the Fund is a party or by which it may be bound, or to which any of
the property or assets of the Fund is subject (collectively, “Agreements and Instruments”)
except for such defaults that do not involve Material Fund Agreements (as defined below) and
material instruments that would not result in a Material Adverse Effect; and the execution,
delivery and performance of this Agreement or the Investment
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Advisory Agreement dated as of March 28, 2005 among the Fund and the Adviser (the
“Management Agreement”), the Custodian Agreement dated as of March 28, 2005 among the Fund
and the Custodian, the Registrar, Transfer Agent and Registrar Service Agreement dated as
of March 31, 2005 between the Fund and American Stock Transfer & Trust Company, and the
Automatic Dividend Reinvestment and Voluntary Cash Purchase Plan (each, a “Material Fund
Agreement”) and the consummation of the transactions contemplated herein and in the
Registration Statement (including the issuance and sale of the Securities and the use of the
proceeds from the sale of the Securities as described in the Prospectus under the caption
“Use of Proceeds”) and compliance by the Fund with its obligations hereunder and under the
Securities have been duly authorized by all necessary corporate action and do not and will
not, whether with or without the giving of notice or passage of time or both, conflict with
or constitute a breach of, or default under, or result in the creation or imposition of any
lien, charge or encumbrance upon any property or assets of the Fund pursuant to, any
Material Fund Agreement (except for such conflicts, breaches, defaults or liens, charges or
encumbrances that would not result in a Material Adverse Effect), nor will such action
result in any violation of the provisions of the Certificate of Trust, Declaration of Trust
or by-laws of the Fund or any applicable law, statute, rule, regulation, judgment, order,
writ or decree of any government, government instrumentality or court, domestic or foreign,
having jurisdiction over the Fund or any of its assets, properties or operations, except for
violations that would not result in a Material Adverse Effect.
(xv) Absence of Proceedings. There is no action, suit, proceeding, inquiry or
investigation before or brought by any court or governmental agency or body, domestic or
foreign, now pending, or, to the knowledge of the Fund or the Investment Adviser,
threatened, against or affecting the Fund, which is required to be disclosed in the
Registration Statement (other than as disclosed therein), or which might result in a
Material Adverse Effect, or which might materially and adversely affect the properties or
assets of the Fund or the consummation of the transactions contemplated in this Agreement or
the performance by the Fund of its obligations hereunder; the aggregate of all pending legal
or governmental proceedings to which the Fund is a party or of which any of its respective
property or assets is the subject which are not described in the Registration Statement,
including ordinary routine litigation incidental to the business, could not result in a
Material Adverse Effect.
(xvi) Accuracy of Exhibits. There are no contracts or documents which are
required to be described in the Registration Statement, the Prospectus, the General
Disclosure Package or the documents incorporated by reference therein or to be filed as
exhibits thereto which have not been so described and filed as required.
(xvii) Absence of Manipulation. Neither the Fund nor any affiliate of the Fund
has taken, nor will the Fund or any affiliate take, directly or indirectly, any action which
is designed to or which has constituted or which would be expected to cause or result in
stabilization or manipulation of the price of any security of the Fund to facilitate the
sale or resale of the Securities.
6
(xviii) Absence of Further Requirements. No filing with, or authorization,
approval, consent, license, order, registration, qualification or decree of, any court or
governmental authority or agency is necessary or required for the performance by the Fund of
its obligations hereunder, in connection with the offering, issuance or sale of the
Securities hereunder or the consummation of the transactions contemplated by this Agreement,
except such as have been already obtained or as may be required under the 1933 Act or the
1933 Act Regulations, the 1934 Act or state securities laws.
(xix) Possession of Licenses and Permits. The Fund possesses such permits,
licenses, approvals, consents and other authorizations (collectively, “Governmental
Licenses”) issued by the appropriate federal, state, local or foreign regulatory agencies or
bodies necessary to conduct the business now operated by it, except where the failure so to
possess would not, singly or in the aggregate, result in a Material Adverse Effect; the Fund
is in compliance with the terms and conditions of all such Governmental Licenses, except
where the failure so to comply would not, singly or in the aggregate, result in a Material
Adverse Effect; all of the Governmental Licenses are valid and in full force and effect,
except when the invalidity of such Governmental Licenses or the failure of such Governmental
Licenses to be in full force and effect would not, singly or in the aggregate, result in a
Material Adverse Effect; and the Fund has not received any notice of proceedings relating to
the revocation or modification of any such Governmental Licenses which, singly or in the
aggregate, if the subject of an unfavorable decision, ruling or finding, would result in a
Material Adverse Effect.
(xx) Title to Property. The Fund has good and marketable title to all real
property owned by the Fund and good title to all other properties owned by it, in each case,
free and clear of all mortgages, pledges, liens, security interests, claims, restrictions or
encumbrances of any kind except such as (a) are described in the Prospectus or the General
Disclosure Package or (b) do not, singly or in the aggregate, materially affect the value of
such property and do not interfere with the use made and proposed to be made of such
property by the Fund; and all of the leases and subleases material to the business of the
Fund, considered as one enterprise, and under which the Fund holds properties described in
the Prospectus and the General Disclosure Package, are in full force and effect, and the
Fund has not received any notice of any material claim of any sort that has been asserted by
anyone adverse to the rights of the Fund under any of the leases or subleases mentioned
above, or affecting or questioning the rights of the Fund to the continued possession of the
leased or subleased premises under any such lease or sublease.
(xxi) Advertisements. Any advertising, sales literature or other promotional
material (including “prospectus wrappers,” “broker kits,” “road show slides” and “road show
scripts”) authorized in writing by or prepared by the Fund or the Investment Adviser for use
in connection with the public offering of the Securities (collectively, “sales material”)
does not contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not misleading.
Moreover, all sales material complied and will comply in all material respects with the
applicable requirements of the 1933 Act, the 1940 Act, the Rules and
7
Regulations and the rules and interpretations of the Financial Industry Regulatory
Authority (“FINRA”).
(xxii) Subchapter M. The Fund intends to direct the investment of the proceeds
of the offering described in the Registration Statement in such a manner as to comply with
the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended
(“Subchapter M of the Code” and the “Code,” respectively), and, at all times since its
inception, has qualified as a regulated investment company under Subchapter M of the Code.
(xxiii) Distribution of Offering Materials. The Fund has not distributed and,
prior to the later to occur of (A) the Closing Time and (B) completion of the distribution
of the Securities, will not distribute any offering material in connection with the offering
and sale of the Securities other than the Registration Statement, a preliminary prospectus,
the Prospectus, the Statutory Prospectus, or other materials, if any, permitted by the 1933
Act or the 1940 Act or the Rules and Regulations.
(xxiv) Accounting Controls and Disclosure Controls. The Fund maintains a
system of internal accounting controls sufficient to provide reasonable assurances that (1)
transactions are executed in accordance with management’s general or specific authorization
and with the applicable requirements of the 1940 Act and the 1940 Act Regulations; (2)
transactions are recorded as necessary to permit preparation of financial statements in
conformity with GAAP and to maintain accountability for assets and to maintain compliance
with the books and records requirements under the 1940 Act and the 1940 Act Regulations; (3)
access to assets is permitted only in accordance with management’s general or specific
authorization; and (4) the recorded accountability for assets is compared with the existing
assets at reasonable intervals and appropriate action is taken with respect to any
differences. Except as described in the Prospectus, since the end of the Fund’s most recent
audited fiscal year, there has been (I) no material weakness in the Fund’s internal control
over financial reporting (whether or not remediated) and (II) no change in the Fund’s
internal control over financial reporting that has materially affected, or is reasonably
likely to materially affect, the Fund’s internal control over financial reporting.
The Fund employs disclosure controls and procedures that are designed to ensure that
information required to be disclosed by the Fund in the reports that it files or submits
under the 1940 Act is recorded, processed, summarized and reported, within the time periods
specified in the Commission’s rules and forms, and is accumulated and communicated to the
Fund’s management, including its principal executive officer or officers and principal
financial officer or officers, as appropriate, to allow timely decisions regarding
disclosure.
(xxv) Compliance with the Xxxxxxxx-Xxxxx Act. There is and has been no failure
on the part of the Fund or any of the Fund’s trustee or officers, in their capacities as
such, to comply in all material respects with any provision of the Xxxxxxxx-Xxxxx Act of
2002 and the rules and regulations promulgated in connection therewith (the
8
“Xxxxxxxx-Xxxxx Act”), including Section 402 related to loans and Sections 302 and 906
related to certifications.
(xxvi) Pending Proceedings and Examinations. The Registration Statement is not
the subject of a pending proceeding or examination under Section 8(d) or 8(e) of the 1933
Act, and the Fund is not the subject of a pending proceeding under Section 8A of the 1933
Act in connection with the offering of the Securities.
(xxvii) Absence of Undisclosed Payments. To the Fund’s knowledge, neither the
Fund nor any employee or agent of the Fund has made any payment of funds of the Fund or
received or retained any funds, which payment, receipt or retention of funds is of a
character required to be disclosed in the Prospectus or the General Disclosure Package.
(xxviii) Material Agreements. Each of this Agreement and each Material Fund
Agreement has each been duly authorized by all requisite action on the part of the Fund,
executed and delivered by the Fund, as of the dates noted therein, and each complies with
all applicable provisions of the 1940 Act. Assuming due authorization, execution and
delivery by the other parties thereto with respect to this Agreement and each Material Fund
Agreement, each such agreement constitutes a valid and binding agreement of the Fund,
enforceable in accordance with its terms, except as affected by bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and other similar laws relating to or
affecting creditors’ rights generally, and by general equitable principles (whether
considered in a proceeding in equity or at law).
(xxix) Registration Rights. There are no persons with registration rights or
other similar rights to have any securities of the Fund registered pursuant to the
Registration Statement or otherwise registered by the Fund under the 1933 Act.
(xxx) AMEX Listing. The Fund’s shares of common stock are duly listed on the
American Stock Exchange (“AMEX”).
(xxxi) Ratings. The Securities have been, or prior to the Closing Time will
be, assigned a rating of “Aaa” by Xxxxx’x Investors Service, Inc. (“Moody’s”).
(xxxii) Leverage. The Fund has no liability for borrowed money or under any
reverse repurchase agreement.
(b) Officer’s Certificates. Any certificate signed by any officer of the Fund or the
Investment Adviser delivered to the Representatives or to counsel for the Underwriters shall be
deemed a representation and warranty by the Fund to each Underwriter as to the matters covered
thereby.
(c) Representations and Warranties by the Investment Adviser. The Investment Adviser
represents and warrants to each Underwriter as of the date hereof, the Applicable Time referred to
in Section 1(a)(i) hereof and as of the Closing Time referred to in Section 2(c) hereof as follows:
9
(i) Good Standing of the Investment Adviser. The Investment Adviser has been
duly organized and is validly existing and in good standing as a limited liability company
under the laws of the State of New York with full limited liability company power and
authority to own, lease and operate its properties and to conduct its business as described
in the Prospectus and the General Disclosure Package and is duly qualified as a foreign
limited liability company to transact business and is in good standing in each other
jurisdiction in which such qualification is required except where the failure so to register
or to qualify does not have a material adverse effect on the condition (financial or other),
business, business prospects, properties, net assets or results of operations of the
Investment Adviser to perform its obligations under this Agreement and the Management
Agreement (an “Adviser Material Adverse Effect”).
(ii) Investment Adviser Status. The Investment Adviser is duly registered and
in good standing with the Commission as an investment adviser under the Advisers Act, and is
not prohibited by the Advisers Act or the 1940 Act, or the rules and regulations under such
acts, from acting under the Management Agreement for the Fund as contemplated by the
Prospectus.
(iii) Description of Investment Adviser. The description of the Investment
Adviser in the Registration Statement, the Prospectus and the General Disclosure Package
(and any amendment or supplement to either of them) complied and comply in all material
respects with the provisions of the 1933 Act, the 1940 Act, the Advisers Act, the Rules and
Regulations and the Advisers Act Rules and Regulations and is true and correct and does not
contain any untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading.
(iv) Capitalization. The Investment Adviser has the financial resources
available to it necessary for the performance of its services and obligations as
contemplated in the Prospectus, the General Disclosure Package, this Agreement and under the
Management Agreement.
(v) Authorization of Agreements; Absence of Defaults and Conflicts. This
Agreement and the Management Agreement have each been duly authorized, executed and
delivered by the Investment Adviser, and the Management Agreement constitutes a valid and
binding obligation of the Investment Adviser, enforceable in accordance with its terms,
except as affected by bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting creditors’ rights generally and
general equitable principles (whether considered in a proceeding in equity or at law); and
neither the execution and delivery of this Agreement or the Management Agreement nor the
performance by the Investment Adviser of its obligations hereunder or thereunder will
conflict with, or result in a breach of any of the terms and provisions of, or constitute,
with or without the giving of notice or lapse of time or both, a default under, (i) any
agreement or instrument to which the Investment Adviser is a party or by which it is bound,
(ii) the certificate of formation, limited liability company agreement, the by-laws or other
organizational documents of the Investment Adviser, or (iii) to the Investment Adviser’s
knowledge, any law, order, decree, rule or regulation applicable to
10
it of any jurisdiction, court, federal or state regulatory body, administrative agency
or other governmental body, stock exchange or securities association having jurisdiction
over the Investment Adviser or its respective properties or operations other than, with
respect to clauses (i) and (iii), any conflict, breach or default that would not,
individually or in the aggregate, be expected to cause an Adviser Material Adverse Effect;
and no consent, approval, authorization or order of any court or governmental authority or
agency is required for the consummation by the Investment Adviser of the transactions
contemplated by this Agreement or the Management Agreement, except as have been obtained or
may be required under the 1933 Act, the 1940 Act, the 1934 Act or state securities laws.
(vi) No Material Adverse Change. Since the respective dates as of which
information is given in the Registration Statement, the Prospectus and the General
Disclosure Package, except as otherwise stated therein, there has not occurred any event
which should reasonably be expected to have a material adverse effect on the ability of the
Investment Adviser to perform its obligations under this Agreement and the Management
Agreement.
(vii) Absence of Proceedings. There is no action, suit, proceeding, inquiry or
investigation before or brought by any court or governmental agency or body, domestic or
foreign, now pending, or, to the knowledge of the Investment Adviser, threatened against or
affecting the Investment Adviser or any “affiliated person” of the Investment Adviser (as
such term is defined in the 1940 Act) or any partners, directors, officers or employees of
the Investment Adviser, whether or not arising in the ordinary course of business, which
might reasonably be expected to result in any material adverse change in the condition,
financial or otherwise, or earnings, business affairs or business prospects of the
Investment Adviser, materially and adversely affect the properties or assets of the
Investment Adviser or materially impair or adversely affect the ability of the Investment
Adviser to function as an Investment Adviser or perform its obligations under the Management
Agreement, or which is required to be disclosed in the Registration Statement, the
Prospectus and the General Disclosure Package that has not been disclosed.
(viii) Absence of Violation or Default. The Investment Adviser is not in
violation of its certificate of formation, limited liability company agreement, by-laws or
other organizational documents or in default under any agreement, indenture or instrument
except for such violations or defaults that would not result in a material adverse change in
the condition, financial or otherwise, or in the earnings, business affairs or business
prospects of the Investment Adviser or the Fund.
SECTION 2. Sale and Delivery to Underwriters; Closing.
(a) Securities. On the basis of the representations and warranties herein contained and
subject to the terms and conditions herein set forth, the Fund agrees to sell to each Underwriter,
severally and not jointly, and each Underwriter, severally and not jointly, agrees to purchase from
the Fund, at the price set forth in Schedule B, the number of Securities set forth in
11
Schedule A opposite the name of such Underwriter, plus any additional Securities which such
Underwriter may become obligated to purchase pursuant to the provisions of Section 10 hereof.
(b) Payment. Payment of the purchase price for, and delivery of certificates for, the
Securities shall be made at the offices of Xxxxxxx Xxxxxxx & Xxxxxxxx LLP, 000 Xxxxxxxxx Xxxxxx,
Xxx Xxxx, Xxx Xxxx 00000, or at such other place as shall be agreed upon by the Representatives and
the Fund, at 10:00 A.M. (Eastern time) on the third (fourth, if the pricing occurs after 4:30 P.M.
(Eastern time) on any given day) business day after the date hereof (unless postponed in accordance
with the provisions of Section 10), or such other time not later than ten business days after such
date as shall be agreed upon by the Representatives and the Fund (such time and date of payment and
delivery being herein called “Closing Time”).
Payment shall be made to the Fund by wire transfer of immediately available funds to a bank
account designated by the Fund, against delivery to the Representatives for the respective accounts
of the Underwriters of certificates for the Securities to be purchased by them. It is understood
that each Underwriter has authorized the Representatives, for its account, to accept delivery of,
receipt for, and make payment of the purchase price for, the Securities which it has agreed to
purchase. Citigroup Global Markets Inc., individually and not as representative of the
Underwriters, may (but shall not be obligated to) make payment of the purchase price for the
Securities to be purchased by any Underwriter whose funds have not been received by the Closing
Time, but such payment shall not relieve such Underwriter from its obligations hereunder.
SECTION 3. Covenants of the Fund. The Fund and the Investment Adviser jointly and
severally covenant with each Underwriter as follows:
(a) Compliance with Securities Regulations and Commission Requests; Payment of Filing Fees.
The Fund, subject to Section 3(b), will comply with the requirements of Rule 430B and will notify
the Representatives immediately, and confirm the notice in writing, (i) when any post-effective
amendment to the Registration Statement or new registration statement relating to the Securities
shall become effective, or any supplement to the Prospectus, the General Disclosure Package or any
amended Prospectus shall have been filed, (ii) of the receipt of any comments from the Commission,
(iii) of any request by the Commission for any amendment to the Registration Statement or the
filing of a new registration statement or any amendment or supplement to the Prospectus or any
document incorporated by reference therein or otherwise deemed to be a part thereof or for
additional information, (iv) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement or such new registration statement or of any order
preventing or suspending the use of any preliminary prospectus, or of the suspension of the
qualification of the Securities for offering or sale in any jurisdiction, or of the initiation or
threatening of any proceedings for any of such purposes. The Fund will effect the filings
necessary under Rule 497, in the manner and within the time period required by Rule 497 and will
take such steps as it deems necessary to ascertain promptly whether the form of prospectus
transmitted for filing under Rule 497 was received for filing by the Commission and, in the event
that it was not, it will promptly file such prospectus. The Fund will make every reasonable effort
to prevent the issuance of any stop order and, if any stop order or order of supervision or
revocation of registration pursuant to Section 8(e) of the 1940 Act is issued, to obtain the
lifting thereof at the earliest possible moment.
12
(b) Filing of Amendments. The Fund will give the Representatives notice of its intention to
file or prepare any amendment to the Registration Statement or new registration statement relating
to the Securities or any amendment, supplement or revision to either any preliminary prospectus
(including any prospectus included in the Original Registration Statement or any amendment thereto
at the time it became effective) or to the Prospectus, whether pursuant to the 1933 Act, the 1934
Act or otherwise, and the Fund will furnish the Representatives with copies of any such documents a
reasonable amount of time prior to such proposed filing or use, as the case may be, and will not
file or use any such document to which the Representatives or counsel for the Underwriters shall
reasonably object.
(c) Delivery of Registration Statements. The Fund has furnished or will deliver to the
Representatives and counsel for the Underwriters, without charge, copies of the Original
Registration Statement and of each amendment thereto (including exhibits filed therewith or
incorporated by reference therein and documents incorporated or deemed to be incorporated by
reference therein or otherwise deemed to be a part thereof) and copies of all consents and
certificates of experts, and will also deliver to the Representatives, without charge, a conformed
copy of the Orginial Registration Statement and of each amendment thereto (without exhibits) for
each of the Underwriters. The copies of the Original Registration Statement and each amendment
thereto furnished to the Underwriters will be identical to the electronically transmitted copies
thereof filed with the Commission pursuant to XXXXX, except to the extent permitted by Regulation
S-T.
(d) Delivery of Prospectuses. The Fund has delivered to each Underwriter, without charge, as
many copies of each preliminary prospectus as such Underwriter reasonably requested, and the Fund
hereby consents to the use of such copies for purposes permitted by the 1933 Act. The Fund will
furnish to each Underwriter, without charge, during the period when the Prospectus is required to
be delivered under the 1933 Act, such number of copies of the Prospectus (as amended or
supplemented) as such Underwriter may reasonably request. The Prospectus and any amendments or
supplements thereto furnished to the Underwriters will be identical to the electronically
transmitted copies thereof filed with the Commission pursuant to XXXXX, except to the extent
permitted by Regulation S-T.
(e) Continued Compliance with Securities Laws. The Fund will comply with the 1933 Act and the
1933 Act Regulations, the 1934 Act and the 1934 Act Regulations so as to permit the completion of
the distribution of the Securities as contemplated in this Agreement and in the Prospectus. If at
any time when a prospectus is required by the 1933 Act to be delivered in connection with sales of
the Securities, any event shall occur or condition shall exist as a result of which it is
necessary, in the opinion of counsel for the Underwriters or for the Fund, to amend the
Registration Statement or amend or supplement the Prospectus in order that the Prospectus will not
include any untrue statements of a material fact or omit to state a material fact necessary in
order to make the statements therein not misleading in the light of the circumstances existing at
the time it is delivered to a purchaser, or if it shall be necessary, in the opinion of such
counsel, at any such time to amend the Registration Statement or to file a new registration
statement or amend or supplement the Prospectus in order to comply with the requirements of the
1933 Act or the 1933 Act Regulations, the Fund will promptly prepare and file with the Commission,
subject to Section 3(b), such amendment, supplement or new registration statement as may be
necessary to correct such statement or omission or to comply with such requirements,
13
the Fund will use its best efforts to have such amendment or new registration statement
declared effective as soon as practicable and the Fund will furnish to the Underwriters such number
of copies of such amendment, supplement or new registration statement as the Underwriters may
reasonably request.
(f) Blue Sky Qualifications. The Fund will use its best efforts, in cooperation with the
Underwriters, to qualify the Securities for offering and sale under the applicable securities laws
of such states and other jurisdictions as the Representatives may designate and to maintain such
qualifications in effect for a period of not less than one year from the date hereof; provided,
however, that the Fund shall not be obligated to file any general consent to service of process or
to qualify as a foreign corporation or as a dealer in securities in any jurisdiction in which it is
not so qualified or so subject itself to taxation in respect of doing business in any jurisdiction
in which it is not otherwise so subject. The Fund will also supply the Underwriters with such
information as is necessary for the determination of the legality of the Securities for investment
under the laws of such jurisdictions as the Underwriters may request.
(g) Rule 158. The Fund will timely file such reports pursuant to the 1934 Act or the 1940 Act
as are necessary in order to make generally available to its securityholders as soon as practicable
an earnings statement for the purposes of, and to provide to the Underwriters the benefits
contemplated by, the last paragraph of Section 11(a) of the 1933 Act.
(h) Use of Proceeds. The Fund will use the net proceeds received by it from the sale of the
Securities in the manner specified in the Prospectus under “Use of Proceeds.”
(i) Reporting Requirements. The Fund, during the period when the Prospectus is required to be
delivered under the 1933 Act or the 1934 Act, including in such circumstances where such
requirement would be satisfied by compliance with Rule 172 of the 1933 Act Regulations, will file
all documents required to be filed with the Commission pursuant to the 1934 Act and the 1940 Act
within the time periods required by the 1934 Act and the 1940 Act and the rules and regulations of
the Commission thereunder, respectively.
(j) Subchapter M. The Fund will comply with the requirements of Subchapter M of the Code to
qualify as a regulated investment company under the Code.
(k) No Manipulation of Market for Securities. The Fund and its affiliates will not (a) take,
directly or indirectly, any action designed to cause or to result in, or that might reasonably be
expected to constitute, the stabilization or manipulation of the price of any security of the Fund
to facilitate the sale or resale of the Securities, and (b) until the Closing Time, (i) sell, bid
for or purchase the Securities or pay any person any compensation for soliciting purchases of the
Securities or (ii) pay or agree to pay to any person any compensation for soliciting another to
purchase any other Securities of the Fund.
(l) Except as provided in this Agreement, the Fund will not sell, contract to sell or
otherwise dispose of any of its preferred shares of the same series as the Securities or any
securities convertible into or exercisable or exchangeable for its preferred shares of the same
series as the Securities, or grant any options or warrants to purchase its preferred shares of the
14
same series as the Securities, for a period of 120 days after the date of the Prospectus,
without the prior written consent of the Representatives.
SECTION 4. Payment of Expenses.
(a) Expenses. The Fund will pay all expenses incident to the performance of its obligations
under this Agreement, including (i) the preparation, printing and filing of the Registration
Statement (including financial statements and exhibits) as originally filed and of each amendment
thereto, (ii) the preparation, printing and delivery to the Underwriters of this Agreement, any
Agreement among Underwriters and such other documents as may be required in connection with the
offering, purchase, sale, issuance or delivery of the Securities, (iii) the preparation, issuance
and delivery of the certificates for the Securities to the Underwriters, including any stock or
other transfer taxes and any stamp or other duties payable upon the sale, issuance or delivery of
the Securities to the Underwriters, (iv) the fees and disbursements of the Fund’s counsel,
accountants and other advisors, (v) the qualification of the Securities under securities laws in
accordance with the provisions of Section 3(f) hereof, including filing fees and the reasonable
fees and disbursements of counsel for the Underwriters in connection therewith and in connection
with the preparation of the Blue Sky Survey and any supplement thereto, (vi) the printing and
delivery to the Underwriters of copies of each preliminary prospectus, the Prospectus and any
amendments or supplements thereto and any costs associated with electronic delivery of any of the
foregoing by the Underwriters to investors, (vii) the preparation, printing and delivery to the
Underwriters of copies of the Blue Sky Survey and any supplement thereto, (viii) the fees and
expenses of any transfer agent or registrar for the Securities, (ix) the fees and expenses incurred
in connection with the rating of the Securities, (x) the printing of any sales material, and (xi)
the transportation and other expenses incurred by or on behalf of Fund representatives in
connection with presentations to prospective purchasers of the Securities.
(b) Termination of Agreement. If this Agreement is terminated by the Representatives in
accordance with the provisions of Section 5 or Section 9(a) hereof, the Fund agrees that it shall
reimburse the Underwriters for all of their out-of-pocket expenses, including the reasonable fees
and disbursements of counsel for the Underwriters.
SECTION 5. Conditions of Underwriters’ Obligations. The obligations of the several
Underwriters hereunder are subject to the accuracy of the representations and warranties of the
Fund and the Investment Adviser contained in Section 1 hereof or in certificates of any officer of
the Fund or the Investment Adviser delivered pursuant to the provisions hereof, to the performance
by the Fund and the Investment Adviser of their respective covenants and other obligations
hereunder, and to the following further conditions:
(a) Effectiveness of Registration Statement; Filing of Prospectus; Payment of Filing Fee. The
Registration Statement has become effective and at Closing Time no stop order suspending the
effectiveness of the Registration Statement shall have been issued under the 1933 Act, no notice or
order pursuant to Section 8(e) of the 1940 Act shall have been issued, and no proceedings with
respect to either shall have been initiated or threatened by the Commission, and any request on the
part of the Commission for additional information shall have been complied with to the reasonable
satisfaction of counsel to the Underwriters. A prospectus containing the Rule 430B Information
shall have been filed with the Commission in accordance with Rule 497
15
(or a post-effective amendment providing such information shall have been filed and become
effective in accordance with the requirements of Rule 430B).
(b) Opinion of Counsel for Fund and the Investment Adviser. At Closing Time, the
Representatives shall have received the favorable opinion or opinions, dated as of Closing Time, of
Xxxxxxx, Arps, Slate, Xxxxxxx & Xxxx LLP, counsel for the Fund and the Investment Adviser, in form
and substance satisfactory to counsel for the Underwriters, together with signed or reproduced
copies of such letter for each of the other Underwriters to the effect set forth in Exhibit A
hereto and to such further effect as counsel to the Underwriters may reasonably request. In
rendering such opinion, such counsel may rely as to matters of fact, to the extent they deem
proper, on certificates of responsible officers of the Fund and public officials. References to
the Prospectus in such opinion shall also include any supplements thereto at the Closing Date. Such
counsel shall also state that Xxxxxxx Xxxxxxx & Xxxxxxxx LLP (“STB”) may rely on such opinion with
respect to matters of Delaware law in connection with STB’s opinion to the Underwriters.
(c) Opinion of Counsel for Underwriters. At Closing Time, the Representatives shall have
received an opinion, dated as of Closing Time, of Xxxxxxx Xxxxxxx & Xxxxxxxx LLP, counsel for the
Underwriters, together with signed or reproduced copies of such letter for each of the other
Underwriters with respect to such matters as the Underwriters may request. In giving such opinion
such counsel may rely, as to all matters governed by the laws of jurisdictions other than the law
of the State of New York and the federal law of the United States, upon the opinions of counsel
satisfactory to the Representatives. Such counsel may also state that, insofar as such opinion
involves factual matters, they have relied, to the extent they deem proper, upon certificates of
officers of the Fund and the Investment Adviser and certificates of public officials.
(d) Officers’ Certificates. At Closing Time, there shall not have been, since the date hereof
or since the respective dates as of which information is given in the Prospectus or the General
Disclosure Package, any material adverse change in the condition, financial or otherwise, or in the
earnings, business affairs or business prospects of the Fund or the Investment Adviser, whether or
not arising in the ordinary course of business, and the Representatives shall have received a
certificate of a duly authorized officer of the Fund and of the chief financial or chief accounting
officer of the Fund and of the President or a Vice President or Managing Director of the Investment
Adviser, dated as of Closing Time, to the effect that (i) there has been no such material adverse
change, (ii) the representations and warranties in Sections 1(a) and (c) hereof are true and
correct with the same force and effect as though expressly made at and as of Closing Time, (iii)
each of the Fund and the Investment Adviser, respectively, has complied with all agreements and
satisfied all conditions on its part to be performed or satisfied at or prior to Closing Time, and
(iv) to the knowledge of such officers, no stop order suspending the effectiveness of the
Registration Statement, or order of suspension or revocation of registration pursuant to Section
8(e) of the 1940 Act, has been issued and no proceedings for any such purpose have been instituted
or are pending or are contemplated by the Commission.
(e) Accountant’s Comfort Letter. At the time of the execution of this Agreement, the
Representatives shall have received from PricewaterhouseCoopers LLP a letter dated such date, in
form and substance satisfactory to the Representatives, together with signed or reproduced copies
of such letter for each of the other Underwriters containing statements and information of
16
the type ordinarily included in accountants’ “comfort letters” to underwriters with respect to
the financial statements and certain financial information contained in the Registration Statement,
the Prospectus and the Statutory Prospectus.
(f) Bring-down Comfort Letter. At Closing Time, the Representatives shall have received from
PricewaterhouseCoopers LLP a letter, dated as of Closing Time, to the effect that they reaffirm the
statements made in the letter furnished pursuant to subsection (e) of this Section, except that the
specified date referred to shall be a date not more than three business days prior to Closing Time.
(g) Maintenance of Rating. At Closing Time, the Securities shall be rated at least “Aaa” by
Xxxxx’x and the Fund shall have delivered to the Representatives a letter dated the Closing Time,
from such rating agency, or other evidence satisfactory to the Representatives, confirming that the
Securities have such rating; and since the date of this Agreement, there shall not have occurred a
downgrading or an announcement of potential downgrade in the rating assigned to the Securities or
any of the Fund’s other securities.
(h) Additional Documents. At Closing Time, counsel for the Underwriters shall have been
furnished with such documents and opinions as they may require for the purpose of enabling them to
pass upon the issuance and sale of the Securities as herein contemplated, or in order to evidence
the accuracy of any of the representations or warranties, or the fulfillment of any of the
conditions, herein contained; and all proceedings taken by the Fund and the Investment Adviser in
connection with the organization and registration of the Fund under the 1940 Act and the issuance
and sale of the Securities as herein contemplated shall be satisfactory in form and substance to
the Representatives and counsel for the Underwriters.
(i) Termination of Agreement. If any condition specified in this Section shall not have been
fulfilled when and as required to be fulfilled, this Agreement may be terminated by the
Representatives by notice to the Fund at any time at or prior to Closing Time, and such
termination shall be without liability of any party to any other party except as provided in
Section 4 and except that Sections 1, 6, 7 and 8 shall survive any such termination and remain in
full force and effect.
SECTION 6. Indemnification.
(a) Indemnification of Underwriters. The Fund and the Investment Adviser, jointly and
severally, agree to indemnify and hold harmless each Underwriter, its affiliates, as such term is
defined in Rule 501(b) under the 1933 Act (each, an “Affiliate”), its selling agents and each
person, if any, who controls any Underwriter within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act as follows:
(i) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, arising out of any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement (or any amendment thereto), including the Rule 430B
Information, or the omission or alleged omission therefrom of a material fact required to be
stated therein or necessary to make the statements therein not misleading or arising out of
any untrue statement or alleged untrue statement of a material fact
17
contained in any preliminary prospectus, or the Prospectus (or any amendment or
supplement thereto), or the omission or alleged omission therefrom of a material fact
necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading;
(ii) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or
of any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission; provided that (subject to Section 6(d) below) any such
settlement is effected with the written consent of the Fund;
(iii) against any and all expense whatsoever, as incurred (including the reasonable
fees and disbursements of counsel chosen by the Representatives), reasonably incurred in
investigating, preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue statement or omission, or any such alleged untrue
statement or omission, to the extent that any such expense is not paid under (i) or (ii)
above;
provided, however, that this indemnity agreement shall not apply to any loss,
liability, claim, damage or expense to the extent arising out of any untrue statement or omission
or alleged untrue statement or omission made in reliance upon and in conformity with written
information furnished to the Fund by any Underwriter through the Representatives expressly for use
in the Registration Statement (or any amendment thereto), including the Rule 430B Information or
any preliminary prospectus or any Prospectus (or any amendment or supplement thereto).
Notwithstanding this paragraph (a), the Investment Adviser shall be liable to any party to be
indemnified under this section 6(a) in any case only to the extent that the Fund fails to indemnify
and hold harmless the indemnified party.
(b) Indemnification of the Fund, the Investment Adviser, Directors and Officers. Each
Underwriter severally and not jointly agrees to indemnify and hold harmless the Fund and the
Investment Adviser and their respective trustees, officers of the Fund who signed the Registration
Statement, and each person, if any, who controls the Fund or the Investment Adviser within the
meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss,
liability, claim, damage and expense described in the indemnity contained in subsection (a) of this
Section, as incurred, but only with respect to untrue statements or omissions, or alleged untrue
statements or omissions, made in the Registration Statement (or any amendment thereto), including
the Rule 430B Information or any preliminary prospectus or the Prospectus (or any amendment or
supplement thereto) in reliance upon and in conformity with written information furnished to the
Fund by such Underwriter through the Representatives expressly for use therein.
(c) Indemnification for Marketing Materials. In addition to the foregoing indemnification,
the Fund and the Investment Adviser also, jointly and severally, agree to indemnify and hold
harmless each Underwriter and each person, if any, who controls any
18
Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act,
against any and all loss, liability, claim, damage and expense described in the indemnity contained
in Section 6(a), as limited by the proviso set forth therein, with respect to any sales material
that has been prepared by or authorized for use in writing by the Fund or the Investment Adviser.
(d) Actions against Parties; Notification. Each indemnified party shall give notice as
promptly as reasonably practicable to each indemnifying party of any action commenced against it in
respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party
shall not relieve such indemnifying party from any liability hereunder to the extent it is not
materially prejudiced as a result thereof and in any event shall not relieve it from any liability
which it may have otherwise than on account of this indemnity agreement. In the case of parties
indemnified pursuant to Section 6(a) above, counsel to the indemnified parties shall be selected by
the Representatives, and, in the case of parties indemnified pursuant to Section 6(b) above,
counsel to the indemnified parties shall be selected by the Fund and the Investment Adviser. An
indemnifying party may participate at its own expense in the defense of any such action; provided,
however, that counsel to the indemnifying party shall not (except with the consent of the
indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying
parties be liable for fees and expenses of more than one counsel (in addition to any local counsel)
separate from their own counsel for all indemnified parties in connection with any one action or
separate but similar or related actions in the same jurisdiction arising out of the same general
allegations or circumstances. No indemnifying party shall, without the prior written consent of
the indemnified parties, settle or compromise or consent to the entry of any judgment with respect
to any litigation, or any investigation or proceeding by any governmental agency or body, commenced
or threatened, or any claim whatsoever in respect of which indemnification or contribution could be
sought under this Section 6 or Section 7 hereof (whether or not the indemnified parties are actual
or potential parties thereto), unless such settlement, compromise or consent (i) includes an
unconditional release of each indemnified party from all liability arising out of such litigation,
investigation, proceeding or claim and (ii) does not include a statement as to or an admission of
fault, culpability or a failure to act by or on behalf of any indemnified party.
(e) Settlement without Consent if Failure to Reimburse. If at any time an indemnified party
shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses
of counsel, such indemnifying party agrees that it shall be liable for any settlement of the nature
contemplated by Section 6(a)(ii) effected without its written consent if (i) such settlement is
entered into more than 45 days after receipt by such indemnifying party of the aforesaid request,
(ii) such indemnifying party shall have received notice of the terms of such settlement at least 30
days prior to such settlement being entered into and (iii) such indemnifying party shall not have
reimbursed such indemnified party in accordance with such request prior to the date of such
settlement.
(f) Notwithstanding any other provisions in this Section 6 or Section 7, no party shall be
entitled to indemnification or contribution under this Agreement against any loss, claim,
liability, expense or damage arising by reason of such person’s willful malfeasance, bad faith,
gross negligence or reckless disregard of its duties in the performance of its duties hereunder.
19
SECTION 7. Contribution. If the indemnification provided for in Section 6 hereof is
for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of
any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying
party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and
expenses incurred by such indemnified party, as incurred, (i) in such proportion as is appropriate
to reflect the relative benefits received by the Fund and the Investment Adviser on the one hand
and the Underwriters on the other hand from the offering of the Securities pursuant to this
Agreement or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits referred to in clause
(i) above but also the relative fault of the Fund and the Investment Adviser on the one hand and of
the Underwriters on the other hand in connection with the statements or omissions which resulted in
such losses, liabilities, claims, damages or expenses, as well as any other relevant equitable
considerations.
The relative benefits received by the Fund and the Investment Adviser on the one hand and the
Underwriters on the other hand in connection with the offering of the Securities pursuant to this
Agreement shall be deemed to be in the same respective proportions as the total net proceeds from
the offering of the Securities pursuant to this Agreement (before deducting expenses) received by
the Fund and the total underwriting discount received by the Underwriters, in each case as set
forth on the cover of the Prospectus, bear to the aggregate initial public offering price of the
Securities as set forth on the cover of the Prospectus.
The relative fault of the Fund and the Investment Adviser on the one hand and the Underwriters
on the other hand shall be determined by reference to, among other things, whether any such untrue
or alleged untrue statement of a material fact or omission or alleged omission to state a material
fact relates to information supplied by the Fund and the Investment Adviser or by the Underwriters
and the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.
The Fund, the Investment Adviser and the Underwriters agree that it would not be just and
equitable if contribution pursuant to this Section 7 were determined by pro rata allocation (even
if the Underwriters were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred to above in this
Section 7. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by
an indemnified party and referred to above in this Section 7 shall be deemed to include any legal
or other expenses reasonably incurred by such indemnified party in investigating, preparing or
defending against any litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue
statement or omission or alleged omission.
Notwithstanding the provisions of this Section 7, no Underwriter shall be required to
contribute any amount in excess of the amount by which the total price at which the Securities
underwritten by it and distributed to the public were offered to the public exceeds the amount of
any damages which such Underwriter has otherwise been required to pay by reason of any such untrue
or alleged untrue statement or omission or alleged omission.
20
No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
1933 Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.
For purposes of this Section 7, each person, if any, who controls an Underwriter within the
meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Underwriter’s
Affiliates and selling agents shall have the same rights to contribution as such Underwriter, and
each trustee of the Fund and each director of the Investment Adviser, respectively, each officer of
the Fund who signed the Registration Statement, and each person, if any, who controls the Fund or
the Investment Adviser within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934
Act shall have the same rights to contribution as the Fund and the Investment Adviser,
respectively. The Underwriters’ respective obligations to contribute pursuant to this Section 7
are several in proportion to the number of shares set forth opposite their respective names in
Schedule A hereto and not joint.
SECTION 8. Representations, Warranties and Agreements to Survive. All
representations, warranties and agreements contained in this Agreement or in certificates of
officers of the Fund or the Investment Adviser submitted pursuant hereto, shall remain operative
and in full force and effect regardless of (i) any investigation made by or on behalf of any
Underwriter or its Affiliates or selling agents, any person controlling any Underwriter, its
officers or directors or any person controlling the Fund, and (ii) delivery of and payment for the
Securities.
SECTION 9. Termination of Agreement.
(a) Termination; General. The Representatives may terminate this Agreement, by notice to the
Fund, at any time at or prior to Closing Time (i) if there has been, since the time of execution of
this Agreement or since the respective dates as of which information is given in the Prospectus
(exclusive of any supplement thereto) or the General Disclosure Package, any material adverse
change in the condition, financial or otherwise, or in the earnings, business affairs or business
prospects of the Fund or the Investment Adviser, whether or not arising in the ordinary course of
business, or (ii) if there has occurred any material adverse change in the financial markets in the
United States or the international financial markets, any outbreak of hostilities or escalation
thereof or other calamity or crisis or any change or development involving a prospective change in
national or international political, financial or economic conditions, in each case the effect of
which is such as to make it, in the judgment of the Representatives, impracticable or inadvisable
to market the Securities or to enforce contracts for the sale of the Securities, or (iii) if
trading in any securities of the Fund has been suspended or materially limited by the Commission or
AMEX, or if trading generally on the AMEX or the New York Stock Exchange or in the Nasdaq Global
Select Market has been suspended or materially limited, or minimum or maximum prices for trading
have been fixed, or maximum ranges for prices have been required, by any of said exchanges or by
such system or by order of the Commission, FINRA or any other governmental authority, or a material
disruption has occurred in commercial banking or securities settlement, or (iv) a material
disruption has occurred in commercial banking or securities settlement or clearance services in the
United States, or (v) if a banking moratorium has been declared by either Federal or New York
authorities.
21
(b) Liabilities. If this Agreement is terminated pursuant to this Section, such termination
shall be without liability of any party to any other party except as provided in Section 4 hereof,
and provided further that Sections 1, 6, 7 and 8 shall survive such termination and remain in full
force and effect.
SECTION 10. Default by One or More of the Underwriters. If one or more of the
Underwriters shall fail at Closing Time to purchase the Securities which it or they are obligated
to purchase under this Agreement (the “Defaulted Securities”), the Representatives shall have the
right, within 24 hours thereafter, to make arrangements for one or more of the non-defaulting
Underwriters, or any other underwriters, to purchase all, but not less than all, of the Defaulted
Securities in such amounts as may be agreed upon and upon the terms herein set forth; if, however,
the Representatives shall not have completed such arrangements within such 24-hour period, then:
(a) if the number of Defaulted Securities does not exceed 10% of the aggregate principal
amount of the Securities to be purchased hereunder, each of the non-defaulting Underwriters shall
be obligated, severally and not jointly, to purchase the full amount thereof in the proportions
that their respective underwriting obligations hereunder bear to the underwriting obligations of
all non-defaulting Underwriters, or
(b) if the number of Defaulted Securities exceeds 10% of the aggregate principal amount of the
Securities to be purchased hereunder, this Agreement shall terminate without liability on the part
of any non-defaulting Underwriter.
No action taken pursuant to this Section shall relieve any defaulting Underwriter from
liability in respect of its default.
In the event of any such default which does not result in a termination of this Agreement,
either the Representatives or the Fund shall have the right to postpone Closing Time for a period
not exceeding seven days in order to effect any required changes in the Registration Statement or
Prospectus or in any other documents or arrangements. As used herein, the term “Underwriter”
includes any person substituted for an Underwriter under this Section 10.
SECTION 11. Tax Disclosure. Notwithstanding any other provision of this Agreement,
immediately upon commencement of discussions with respect to the transactions contemplated hereby,
the Fund and the Investment Adviser (and each employee, representative or other agent of the Fund)
may disclose to any and all persons, without limitation of any kind, the tax treatment and tax
structure of the transactions contemplated by this Agreement and all materials of any kind
(including opinions or other tax analyses) that are provided to the Fund relating to such tax
treatment and tax structure. For purposes of the foregoing, the term “tax treatment” is the
purported or claimed federal income tax treatment of the transactions contemplated hereby, and the
term “tax structure” includes any fact that may be relevant to understanding the purported or
claimed federal income tax treatment of the transactions contemplated hereby.
SECTION 12. Notices. All notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given if mailed or transmitted by any standard form
of telecommunication. Notices to the Underwriters shall be directed to the Representatives
22
at Citigroup Global Markets Inc., 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, attention of
the General Counsel; and notices to the Fund or the Investment Adviser shall be directed to it c/o
The Gabelli Equity Trust Inc., Xxx Xxxxxxxxx Xxxxxx, Xxx, Xxx Xxxx 00000-0000, attention of the
Legal Department.
SECTION 13. No Advisory or Fiduciary Relationship. The Fund and the Investment
Adviser each acknowledges and agrees that (a) the purchase and sale of the Securities pursuant to
this Agreement, including the determination of the public offering price of the Securities and any
related discounts and commissions, is an arm’s-length commercial transaction between the Fund, on
the one hand, and the several Underwriters, on the other hand, (b) in connection with the offering
contemplated hereby and the process leading to such transaction each Underwriter is and has been
acting solely as a principal and is not the agent or fiduciary of the Fund or the Investment
Adviser, or their stockholders, creditors, employees or any other party, (c) no Underwriter has
assumed or will assume an advisory or fiduciary responsibility in favor of the Fund or the
Investment Adviser with respect to the offering contemplated hereby or the process leading thereto
(irrespective of whether such Underwriter has advised or is currently advising the Fund or the
Investment Adviser on other matters) and no Underwriter has any obligation to the Fund or the
Investment Adviser with respect to the offering contemplated hereby except the obligations
expressly set forth in this Agreement, (d) the Underwriters and their respective affiliates may be
engaged in a broad range of transactions that involve interests that differ from those of the Fund
or the Investment Adviser, and (e) the Underwriters have not provided any legal, accounting,
regulatory or tax advice with respect to the offering contemplated hereby and the Fund and the
Investment Adviser each has consulted its own legal, accounting, regulatory and tax advisors to the
extent it deemed appropriate.
SECTION 14. Integration. This Agreement supersedes all prior agreements and
understandings (whether written or oral) among the Fund, the Investment Adviser and the
Underwriters, or any of them, with respect to the subject matter hereof.
SECTION 15. Parties. This Agreement shall each inure to the benefit of and be binding
upon the Underwriters, the Investment Adviser and the Fund and their respective successors.
Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any
person, firm or corporation, other than the Underwriters, the Investment Adviser and the Fund and
their respective successors and the controlling persons and officers and directors referred to in
Sections 6 and 7 and their heirs and legal representatives, any legal or equitable right, remedy or
claim under or in respect of this Agreement or any provision herein contained. This Agreement and
all conditions and provisions hereof are intended to be for the sole and exclusive benefit of the
Underwriters, the Investment Adviser and the Fund and their respective successors, and said
controlling persons and officers and directors and their heirs and legal representatives, and for
the benefit of no other person, firm or corporation. No purchaser of Securities from any
Underwriter shall be deemed to be a successor by reason merely of such purchase.
SECTION 16. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
23
SECTION 17. TIME. TIME SHALL BE OF THE ESSENCE OF THIS AGREEMENT. EXCEPT AS
OTHERWISE SET FORTH HEREIN, SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME.
SECTION 18. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such counterparts shall
together constitute one and the same Agreement.
SECTION 19. Effect of Headings. The Section headings herein are for convenience only
and shall not affect the construction hereof.
24
If the foregoing is in accordance with your understanding of our agreement, please sign and
return to the Fund a counterpart hereof, whereupon this instrument, along with all counterparts,
will become a binding agreement among the Underwriters, the Fund and the Investment Adviser in
accordance with its terms.
Very truly yours, The Gabelli Global Gold, Natural Resources & Income Trust |
||||
By | ||||
Title: | ||||
Gabelli Funds, LLC |
||||
By | ||||
Title: | ||||
25
CONFIRMED AND ACCEPTED, as of the date first above written: |
||||
By:
|
CITIGROUP GLOBAL MARKETS INC. | |||
By |
||||
By:
|
XXXXXXX XXXXX, XXXXXX, XXXXXX & XXXXX INCORPORATED | |||
By |
||||
Authorized Signatory |
For themselves and as Representatives of the other Underwriters named in Schedule A hereto.
26
SCHEDULE A
Number of | ||||
Name of Underwriter | Shares | |||
Citigroup Global Markets Inc. |
||||
Xxxxxxx Xxxxx, Xxxxxx, Xxxxxx & Xxxxx |
||||
Incorporated |
||||
Gabelli & Company, Inc. |
||||
Total |
SCHEDULE B
The
purchase price to be paid by the Underwriters for the Securities
shall be
$[ ] per share.
SCHEDULE C
Oral information, if any, included as part of the General Disclosure Package.
Dividend Rate (cumulative from October [ ], 2007)
|
[ ]% | |
Settlement Date
|
October [ ], 2007 |
Exhibit A
FORM OF OPINION OF FUND AND
INVESTMENT ADVISER’S COUNSEL
TO BE DELIVERED PURSUANT TO
SECTION 5(b)
INVESTMENT ADVISER’S COUNSEL
TO BE DELIVERED PURSUANT TO
SECTION 5(b)
With respect to the Fund:
(a) The Fund has been duly organized and is validly existing in good standing as a
statutory trust under the laws of the State of Delaware, with trust power to own, lease and
operate its properties and to conduct its business in all material respects as described in
the Prospectus and the General Disclosure Package, and is duly qualified to do business as a
foreign trust and is in good standing under the laws of New York; and the Fund has no
subsidiaries;
(b) The Fund is duly registered with the Commission under the 1940 Act as a closed-end,
non-diversified management investment company and all action has been taken by the Fund as
required by the 1933 Act and the 1940 Act and the Rules and Regulations in connection with
the issuance and sale of the Securities to make the public offering and consummate the sale
of the Securities as contemplated by the Agreement; the Material Fund Agreements comply in
all material respects with all applicable provisions of the 1933 Act, the 1940 Act, the
Advisers Act, the Rules and Regulations and the Advisers Act Rules and Regulations; and to
the knowledge of such counsel, the Fund has not received any notice from the Commission
pursuant to Section 8(e) of the 1940 Act with respect to the 1940 Act Notification or the
Registration Statement;
(c) The Agreement has been duly authorized, executed and delivered by the Fund;
(d) The Material Fund Agreements have been duly authorized, executed and delivered by
the Fund and constitute the valid and legally binding agreements of the Fund, enforceable
against the Fund in accordance with their terms, except as rights to indemnity and
contribution may be limited by federal or state securities laws or principles of public
policy and subject to the qualification that the enforceability of the Fund’s obligations
thereunder may be limited by bankruptcy, insolvency, reorganization, moratorium and other
laws relating to or affecting creditors’ rights generally and by general equitable
principles regardless of whether enforceability is considered in a proceeding at law or in
equity;
(e) Neither the issuance and sale of the Securities, the execution, delivery or
performance of the Agreement or any of the Material Fund Agreements by the Fund, nor the
consummation by the Fund of the transactions herein or therein contemplated (i) conflicts or
will conflict with or constitutes or will constitute a breach of the Certificate of Trust,
the Declaration of Trust or by-laws of the Fund, (ii) conflicts or will conflict
with or constitutes or will constitute a breach of or a default under, any Material
Fund Agreement or will result in the creation or imposition of any lien, charge or
encumbrance upon any property or assets of the Fund pursuant to the terms of any Material
Fund Agreement or (iii) violates or will violate any Applicable Law, the 1933 Act, the 1940
Act, the Advisers Act or any judgment, order or decree identified in an Officer’s
Certificate;
(f) The Fund’s authorized equity capitalization is as set forth in the Prospectus and
the General Disclosure Package under the captions “Capitalization” and “Description of the
Shares”; the capital stock of the Fund conforms to the description thereof contained in the
Registration Statement, the Prospectus and the General Disclosure Package; the Securities
have been duly and validly authorized, and, when issued and delivered to and paid for by the
Underwriters pursuant to the Agreement, will be fully paid and nonassessable and such
issuance will be free of any preemptive or similar rights that entitle or will entitle any
person to acquire any Securities upon issuance thereof by the Fund; except as set forth in
the Prospectus and the General Disclosure Package, to the knowledge of such counsel, no
options, warrants or other rights to purchase, agreements or other obligations to issue, or
rights to convert any obligations into or exchange any securities for, shares of capital
stock of or ownership interests in the Fund have been authorized by
the Board of Trustees or are outstanding under the Material Fund
Agreements.
(g) To the knowledge of such counsel, there is no pending or threatened action, suit or
proceeding by or before any court or governmental agency, authority or body or any
arbitrator involving the Fund or its property of a character required to be disclosed in the
Registration Statement which is not adequately disclosed in the Prospectus and the General
Disclosure Package, and there are no agreements, contracts, indentures, leases or other
instruments that are required to be described in the Registration Statement, Prospectus and
the General Disclosure Package, or to be filed as an exhibit thereto, which is not described
or filed as required by the 1933 Act, the 1940 Act or the Rules and Regulations; and the
statements included in the Prospectus and the General Disclosure Package under the headings
“Taxation,” “Description of the Shares,” “Management of the Fund—Regulatory Matters” and
“Anti-Takeover Provisions of the Fund’s Governing Documents” insofar as such statements
summarize legal matters, agreements, documents or proceedings discussed therein, are
accurate summaries of such legal matters, agreements, documents or proceedings in all
material respects.
(h) No consent, approval, authorization, filing with or order of any court or
governmental agency or body by the Fund is required in connection with the transactions
contemplated by the Agreement or in the Material Fund Agreements, except such as have been
made or obtained under the 1933 Act, the 1934 Act and the 1940 Act and such as may be
required under the blue sky laws of any jurisdiction in connection with the purchase and
distribution of the Securities by the Underwriters in the manner contemplated in the
Agreement and in the Prospectus and the General Disclosure Package and such other approvals
(specified in such opinion) as have been obtained;
(i) To the knowledge of such counsel, no holders of securities of the Fund have rights
to the registration of such securities under the Registration Statement;
(j) The Registration Statement has become effective under the 1933 Act; any required
filing of each prospectus relating to the Securities (including the Prospectus) and any
supplements thereto, pursuant to Rule 497 have been made in the manner and within the time
period required by Rule 497; to the knowledge of such counsel, no stop order suspending the
effectiveness of the Registration Statement has been issued, no proceedings for that purpose
have been instituted or threatened and the Registration Statement, the Prospectus and the
Statutory Prospectus (including the Rule 430B Information but other than the financial
statements and other financial and statistical information contained or incorporated by
reference therein and the exhibits thereto, as to which such counsel need express no
opinion) as of their respective effective or issue dates complied as to form in all material
respects with the applicable requirements of the 1933 Act, the 1940 Act and the Rules and
Regulations. Nothing has come to such counsel’s attention that would lead it to believe
that the Original Registration Statement or any amendment thereto (other than financial
statements or other financial and statistical information contained or incorporated by
reference therein and the exhibits thereto as to which such counsel need express no
opinion), at the time such Original Registration Statement or any such amendment became
effective, contained an untrue statement of a material fact or, except for the information
included in the prospectus supplement relating to the Securities contained in the
Prospectus, omitted to state a material fact required to be stated therein or necessary to
make the statements therein not misleading; that the Registration Statement, including the
Rule 430B Information (other than financial statements or other financial and statistical
information contained or incorporated by reference therein and the exhibits thereto as to
which such counsel need express no opinion), at each deemed effective date with respect to
the Underwriters pursuant to Rule 430B(f)(2) of the 1933 Act Regulations, contained an
untrue statement of a material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements therein not misleading; or that the
Prospectus or any amendment or supplement thereto (other than financial statements or other
financial and statistical information contained or incorporated by reference therein and the
exhibits thereto as to which such counsel need express no opinion), at the time the
Prospectus was issued, at the time any such amended or supplemented prospectus was issued or
at the Closing Time, included or includes an untrue statement of a material fact or omitted
or omits to state a material fact necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading. In addition, nothing
has come to such counsel’s attention that would lead them to believe that the General
Disclosure Package, other than financial statements or other financial and statistical
information contained or incorporated by reference therein and the exhibits thereto as to
which such counsel need express no opinion, as of the Applicable Time, contained any untrue
statement of a material fact or omitted to state any material fact necessary in order to
make the statements therein, in the light of circumstances under which they were made, not
misleading. With respect to statements contained in the General Disclosure Package, any
statement contained in any of the constituent documents shall be deemed to be modified or
superseded to the extent that any information contained in subsequent constituent documents
modifies or replaces such statement.
With respect to the Investment Adviser
(a) The Investment Adviser has been duly formed and is validly existing in good
standing as a limited liability company under the laws of the State of New York, with full
power and authority to own, lease and operate its properties and to conduct its business as
described in the Prospectus and the General Disclosure Package.
(b) The Investment Adviser is duly registered under the Advisers Act as an investment
adviser and is not prohibited by the Advisers Act, the 1940 Act, the Advisers Act Rules and
Regulations or the 1940 Act Regulations from acting under the Management Agreement, as
contemplated by the Prospectus and the General Disclosure Package;
(c) The Investment Adviser has full power and authority to enter into the Agreement and
the Management Agreement;
(d) The Agreement has been duly authorized, executed and delivered by the Investment
Adviser;
(e) The Management Agreement has been duly authorized, executed and delivered by the
Investment Adviser and the Management Agreement is a valid and legally binding agreement of
the Investment Adviser, enforceable against the Investment Adviser in accordance with its
terms except as rights to indemnity and contribution may be limited by federal or state
securities laws or principles of public policy and subject to the qualification that the
enforceability of the Investment Adviser’s obligations thereunder may be limited by
bankruptcy, insolvency, reorganization, moratorium and other laws relating to or affecting
creditors’ rights generally and by general equitable principles regardless of whether
enforceability is considered in a proceeding at law or in equity;
(f) The Agreement and the Management Agreement comply in all material respects with all
applicable provisions of the 1933 Act, the 1940 Act, the Advisers Act, the Rules and
Regulations and the Advisers Act Rules and Regulations;
(g) Neither the issuance and sale of the Securities, the execution, delivery or
performance of the Agreement and the Management Agreement by the Investment Adviser, nor the
consummation by the Investment Adviser of the transactions herein or therein contemplated
(i) materially conflicts or will conflict with or constitutes or will constitute a material
breach of or default under the certificate of formation, limited liability company agreement
or bylaws, or other organizational documents, of the Investment Adviser, (ii) conflicts or
will conflict with, or constitutes or will constitute a breach of or default under any
[Material Adviser Agreement] or will result in the creation or imposition of any lien,
charge or encumbrance upon any property or assets of the Investment Adviser pursuant to the
terms of any [Material Adviser Agreement] or (iii)
violates or will violates any Applicable Law, the 1933 Act, the 1940 Act, the Advisers
Act or any judgment, order or decree identified in an Officer’s Certificate;
(h) The description of the Investment Adviser and its business in the Prospectus and
the General Disclosure Package complies in all material respects with all requirements of
the 1933 Act, the 1940 Act and the Rules and Regulations;
(i) To the knowledge of such counsel, there is no pending or threatened action, suit or
proceeding by or before any court or governmental agency, authority or body or any
arbitrator involving the Investment Adviser or its property of a character required to be
disclosed in the Registration Statement which is not adequately disclosed in the Prospectus
and the General Disclosure Package, and there are no agreements, contracts, indentures,
leases or other instruments that are required to be described in the Registration Statement,
Prospectus and the General Disclosure Package, or to be filed as an exhibit thereto, which
is not described or filed as required by the 1933 Act, the 1940 Act or the Rules and
Regulations;
(j) No consent, approval, authorization, filing with or order of any court or
governmental agency or body by the Investment Adviser is required on the part of the
Investment Adviser in connection with the transactions contemplated by the Agreement or in
the Management Agreement, except such as have been made or obtained under the 1933 Act, the
1934 Act, the 1940 Act and the Advisers Act and such as may be required under the blue sky
laws of any jurisdiction in connection with the purchase and distribution of the Securities
by the Underwriters in the manner contemplated in the Agreement and in the Prospectus and
the General Disclosure Package and such other approvals (specified in such opinion) as have
been obtained.