AGREEMENT AND DECLARATION OF TRUST
of
The Berwyn Funds
a Delaware Business Trust
February 4, 1999
TABLE OF CONTENTS
Page
ARTICLE I. Name and Definitions..................................1
Section 1. Name............................................1
Section 2. Registered Agent and Registered Office; Principal
Place of Business...............................2
(a) Registered Agent and Registered Office............2
(b) Principal Place of Business.......................2
Section 3. Definitions.....................................2
(a) "1940 Act"........................................2
(b) "Affiliate".......................................2
(c) "Board of Trustees"...............................2
(d) "By-Laws".........................................2
(e) "Certificate of Trust"............................2
(f) "Code"............................................2
(g) "Commission"......................................2
(h) "DBTA"............................................3
(i) "Declaration of Trust"............................3
(j) "General Liabilities".............................3
(k) "Interested Person"...............................3
(l) "Investment Adviser" or "Adviser".................3
(m) "National Financial Emergency"....................3
(n) "Person"..........................................3
(o) "Principal Underwriter"...........................3
(p) "Series"..........................................3
(q) "Shares"..........................................3
(r) "Shareholder".....................................4
(s) "Trust"...........................................4
(t) "Trust Property"..................................4
(u) "Trustee" or "Trustees"...........................4
ARTICLE II. Purpose of Trust.....................................4
ARTICLE III. Shares..............................................7
Section 1. Division of Beneficial Interest.................7
Section 2. Ownership of Shares.............................9
Section 3. Investments in the Trust........................9
Section 4. Status of Shares and Limitation of Personal
Liability.......................................9
Section 5. Power of Board of Trustees to Change Provisions
Relating to Shares.............................10
Section 6. Establishment and Designation of Series........11
(a) Assets Held with Respect to a Particular
Series...........................................11
(b) Liabilities Held with Respect to a Particular
Series...........................................11
(c) Dividends, Distributions, Redemptions and
Repurchases......................................12
(d) Voting...........................................13
(e) Equality.........................................13
(f) Fractions........................................13
(g) Exchange Privilege...............................13
(h) Combination of Series............................13
(i) Elimination of Series............................14
Section 7. Indemnification of Shareholders................14
ARTICLE IV. The Board of Trustees...............................14
Section 1. Number, Election and Tenure....................14
Section 2. Effect of Death, Resignation, Removal, etc.
of a Trustee.................................
Section 3. Powers.........................................15
Section 4. Payment of Expenses by the Trust...............16
Section 5. Payment of Expenses by Shareholders............17
Section 6. Ownership of Trust Property....................17
Section 7. Service Contracts..............................17
ARTICLE V. Shareholders' Voting Powers and Meetings.............19
Section 1. Voting Powers..................................19
Section 2. Meetings.......................................19
Section 3. Quorum and Required Vote.......................19
Section 4. Shareholder Action by Written Consent without a
Meeting........................................20
Section 5. Record Dates...................................20
Section 6. Additional Provisions..........................21
ARTICLE VI. Net Asset Value, Distributions and Redemptions......21
Section 1. Determination of Net Asset Value, Net Income
and Distributions..............................21
Section 2. Redemptions at the Option of a Shareholder.....22
Section 3. Redemptions at the Option of the Trust.........23
ARTICLE VII. Compensation and Limitation of Liability of
Officers and Trustees......................................23
Section 1. Compensation...................................23
Section 2. Indemnification and Limitation of Liability....23
Section 3. Officers and Trustees' Good Faith Action, Expert
Advice, No
Bond or Surety....................................24
Section 4. Insurance......................................24
ARTICLE VIII. Miscellaneous.....................................25
Section 1. Liability of Third Persons Dealing with
Trustees.......................................25
Section 2. Dissolution of Trust or Series.................25
Section 3. Merger and Consolidation; Conversion...........25
(a) Merger and Consolidation.........................26
(b) Conversion.......................................26
Section 4. Reorganization.................................26
Section 5. Amendments.....................................27
Section 6. Filing of Copies, References, Headings.........27
Section 7. Applicable Law.................................28
Section 8. Provisions in Conflict with Law or Regulations.28
Section 9. Business Trust Only............................28
AGREEMENT AND DECLARATION OF TRUST
OF
The Berwyn Funds
AGREEMENT AND DECLARATION OF TRUST made as of this 4th day of February
1999, by the Trustees hereunder, and by the holders of shares of beneficial
interest to be issued hereunder as hereinafter provided. This Agreement and
Declaration of Trust shall be effective upon the filing of the Certificate of
Trust in the office of the Secretary of State of the State of Delaware.
W I T N E S S E T H:
WHEREAS this Trust has been formed to carry on the business
of an investment company; and
WHEREAS this Trust is authorized to issue its shares of beneficial
interest in separate Series, and to issue classes of Shares of any Series or
divide Shares of any Series into two or more classes, all in accordance with the
provisions hereinafter set forth; and
WHEREAS the Trustees have agreed to manage all property coming into their
hands as trustees of a Delaware business trust in accordance with the provisions
of the Delaware Business Trust Act (12 Del. C. ss.3801, et seq.), as from time
to time amended and including any successor statute of similar import (the
"DBTA"), and the provisions hereinafter set forth;
NOW, THEREFORE, the Trustees hereby declare that they will hold all cash,
securities and other assets which they may from time to time acquire in any
manner as Trustees hereunder IN TRUST to manage and dispose of the same upon the
following terms and conditions for the benefit of the holders from time to time
of shares of beneficial interest in this Trust and the Series created hereunder
as hereinafter set forth.
ARTICLE I.
Name and Definitions
Section 1. Name. This trust shall be known as "The Berwyn Funds" and the
Trustees shall conduct the business of the Trust under that name, or any other
name as they may from time to time determine.
Section 2. Registered Agent and Registered Office; Principal Place
of Business.
(a) Registered Agent and Registered Office. The name of the registered
agent of the Trust and the address of the registered office of the Trust are as
set forth on the Certificate of Trust.
(b) Principal Place of Business. The principal place of business of the
Trust is 0000 Xxxxxxxxx Xxxxxx, Xxxxxx, Xxxxxxxxxxxx 00000 or such other
location within or outside of the State of Delaware as the Board of Trustees may
determine from time to time.
Section 3. Definitions. Whenever used herein, unless
otherwise required by the context or specifically provided:
(a) "1940 Act" shall mean the Investment Company Act of 1940 and the rules
and regulations thereunder, all as adopted or amended from time to time.
(b) "Affiliate" shall have the meaning given to "Affiliated Person" in
Section 2(a)(3) of the 1940 Act when used with reference to a specified Person.
(c) "Board of Trustees" shall mean the governing body of the Trust, which
is comprised of the Trustees of the Trust.
(d) "By-Laws" shall mean the By-Laws of the Trust, as amended from time to
time in accordance with Article X of the By-Laws, and incorporated herein by
reference.
(e) "Certificate of Trust" shall mean the certificate of trust filed with
the Office of the Secretary of State of the State of Delaware as required under
the DBTA to form the Trust.
(f) "Code" shall mean the Internal Revenue Code of 1986, and the rules and
regulations thereunder, all as adopted or amended from time to time.
(g) "Commission" shall have the meaning given to it in Section 2(a)(7) of
the 1940 Act.
(h) "DBTA" shall mean the Delaware Business Trust Act, (12 Del. C.
ss.3801, et seq.), as amended from time to time.
(i) "Declaration of Trust" shall mean this Agreement and Declaration of
Trust, as amended or restated from time to time.
(j) "General Liabilities" shall have the meaning given it in Article III,
Section 6(b) of this Declaration Trust.
(k) "Interested Person" shall have the meaning given to it in Section
2(a)(19) of the 1940 Act.
(l) "Investment Adviser" or "Adviser" shall mean a party furnishing
services to the Trust pursuant to any contract described in Article IV, Section
7(a) hereof.
(m) "National Financial Emergency" shall mean the whole or any part of any
period set forth in Section 22(e) of the 1940 Act. The Board of Trustees may, in
its discretion, declare that the suspension relating to a National Financial
Emergency shall terminate, as the case may be, on the first business day on
which the New York Stock Exchange shall have reopened or the period specified in
Section 22(e) of the 1940 Act shall have expired (as to which, in the absence of
an official ruling by the Commission, the determination of the Board of Trustees
shall be conclusive).
(n) "Person" shall include a natural person, partnership, limited
partnership, trust, estate, association, corporation, custodian, nominee or any
other individual or entity in its own or any representative capacity.
(o) "Principal Underwriter" shall have the meaning given to it in Section
2(a)(29) of the 1940 Act.
(p) "Series" shall refer to each Series of Shares established and
designated under or in accordance with the provisions of Article III and shall
mean an entity such as that described in Section 18(f)(2) of the 1940 Act, and
subject to Rule 18f-2 thereunder.
(q) "Shares" shall mean the outstanding shares of beneficial interest into
which the beneficial interest in the Trust shall be divided from time to time,
and shall include fractional and whole shares.
(r) "Shareholder" shall mean a record owner of Shares.
(s) "Trust" shall refer to the Delaware business trust established by this
Declaration of Trust, as amended from time to time.
(t) "Trust Property" shall mean any and all property, real or personal,
tangible or intangible, which is owned or held by or for the account of the
Trust or one or more of any Series, including, without limitation, the rights
referenced in Article VIII, Section 2 hereof.
(u) "Trustee" or "Trustees" shall refer to each signatory to this
Declaration of Trust as a trustee, so long as such signatory continues in office
in accordance with the terms hereof, and all other Persons who may, from time to
time, be duly elected or appointed, qualified and serving on the Board of
Trustees in accordance with the provisions hereof. Reference herein to a Trustee
or the Trustees shall refer to such Person or Persons in their capacity as
trustees hereunder.
ARTICLE II.
Purpose of Trust
The purpose of the Trust is to conduct, operate and carry on the business
of a registered management investment company registered under the 1940 Act
through one or more Series investing primarily in securities and, in addition to
any authority given by law, to exercise all of the powers and to do any and all
of the things as fully and to the same extent as any private corporation
organized for profit under the general corporation law of the State of Delaware,
now or hereafter in force, including, without limitation, the following powers:
(a) To invest and reinvest cash, to hold cash uninvested, and to subscribe
for, invest in, reinvest in, purchase or otherwise acquire, own, hold, pledge,
sell, assign, mortgage, transfer, exchange, distribute, write options on, lend
or otherwise deal in or dispose of contracts for the future acquisition or
delivery of fixed income or other securities, and securities or property of
every nature and kind, including, without limitation, all types of bonds,
debentures, stocks, preferred stocks, negotiable or non-negotiable instruments,
obligations, evidences of indebtedness, certificates of deposit or indebtedness,
commercial paper, repurchase agreements, bankers' acceptances, and other
securities of any kind, issued, created, guaranteed, or sponsored by any and all
Persons, including, without limitation, states, territories, and possessions of
the United States and the District of Columbia and any political subdivision,
agency, or instrumentality thereof, any foreign government or any political
subdivision of the U.S. Government or any foreign government, or any
international instrumentality, or by any bank or savings institution, or by any
corporation or organization organized under the laws of the United States or of
any state, territory, or possession thereof, or by any corporation or
organization organized under any foreign law, or "when issued" contracts for any
such securities, or to change the investments of the assets of the Trust;
(b) To exercise any and all rights, powers and privileges with reference
to or incident to ownership or interest, use and enjoyment of any of such
securities and other instruments or property of every kind and description,
including, but without limitation, the right, power and privilege to own, vote,
hold, purchase, sell, negotiate, assign, exchange, lend, transfer, mortgage,
hypothecate, lease, pledge or write options with respect to or otherwise deal
with, dispose of, use, exercise or enjoy any rights, title, interest, powers or
privileges under or with reference to any of such securities and other
instruments or property, the right to consent and otherwise act with respect
thereto, with power to designate one or more Persons, to exercise any of said
rights, powers, and privileges in respect of any of said instruments, and to do
any and all acts and things for the preservation, protection, improvement and
enhancement in value of any of such securities and other instruments or
property;
(c) To sell, exchange, lend, pledge, mortgage, hypothecate, lease or write
options with respect to or otherwise deal in any property rights relating to any
or all of the assets of the Trust or any Series, subject to any requirements of
the 1940 Act;
(d) To vote or give assent, or exercise any rights of ownership, with
respect to stock or other securities or property; and to execute and deliver
proxies or powers of attorney to such person or persons as the Trustees shall
deem proper, granting to such person or persons such power and discretion with
relation to securities or property as the Trustees shall deem proper;
(e) To exercise powers and right of subscription or otherwise which in any
manner arise out of ownership of securities;
(f) To hold any security or property in a form not indicating that it is
trust property, whether in bearer, unregistered or other negotiable form, or in
its own name or in the name of a custodian or subcustodian or a nominee or
nominees or otherwise or to authorize the custodian or a subcustodian or a
nominee or nominees to deposit the same in a securities depository, subject in
each case to proper safeguards according to the usual practice of investment
companies or any rules or regulations applicable thereto;
(g) To consent to, or participate in, any plan for the reorganization,
consolidation or merger of any corporation or issuer of any security which is
held in the Trust; to consent to any contract, lease, mortgage, purchase or sale
of property by such corporation or issuer; and to pay calls or subscriptions
with respect to any security held in the Trust;
(h) To join with other security holders in acting through a committee,
depositary, voting trustee or otherwise, and in that connection to deposit any
security with, or transfer any security to, any such committee, depositary or
trustee, and to delegate to them such power and authority with relation to any
security (whether or not so deposited or transferred) as the Trustees shall deem
proper, and to agree to pay, and to pay, such portion of the expenses and
compensation of such committee, depositary or trustee as the Trustees shall deem
proper;
(i) To compromise, arbitrate or otherwise adjust claims in favor of or
against the Trust or any matter in controversy, including but not limited to
claims for taxes;
(j) To enter into joint ventures, general or limited partnerships and any
other combinations or associations;
(k) To endorse or guarantee the payment of any notes or other obligations
of any Person; to make contracts of guaranty or suretyship, or otherwise assume
liability for payment thereof;
(l) To purchase and pay for entirely out of Trust Property such insurance
as the Trustees may deem necessary or appropriate for the conduct of the
business, including, without limitation, insurance policies insuring the assets
of the Trust or payment of distributions and principal on its portfolio
investments, and insurance policies insuring the Shareholders, Trustees,
officers, employees, agents, Investment Advisers, Principal Underwriters, or
independent contractors of the Trust, individually against all claims and
liabilities of every nature arising by reason of holding Shares, holding, being
or having held any such office or position, or by reason of any action alleged
to have been taken or omitted by any such Person as Trustee, officer, employee,
agent, Investment Adviser, Principal Underwriter, or independent contractor, to
the fullest extent permitted by this Declaration of Trust, the Bylaws and by
applicable law;
(m) To adopt, establish and carry out pension, profit-sharing, share
bonus, share purchase, savings, thrift and other retirement, incentive and
benefit plans, trusts and provisions, including the purchasing of life insurance
and annuity contracts as a means of providing such retirement and other
benefits, for any or all of the Trustees, officers, employees and agents of the
Trust;
(n) To purchase or otherwise acquire, own, hold, sell, negotiate,
exchange, assign, transfer, mortgage, pledge or otherwise deal with, dispose of,
use, exercise or enjoy, property of all kinds;
(o) To buy, sell, mortgage, encumber, hold, own, exchange, rent or
otherwise acquire and dispose of, and to develop, improve, manage, subdivide,
and generally to deal and trade in real property, improved and unimproved, and
wheresoever situated; and to build, erect, construct, alter and maintain
buildings, structures, and other improvements on real property;
(p) To borrow or raise moneys for any of the purposes of the Trust, and to
mortgage or pledge the whole or any part of the property and franchises of the
Trust, real, personal, and mixed, tangible or intangible, and wheresoever
situated;
(q) To enter into, make and perform contracts and undertakings of every
kind for any lawful purpose, without limit as to amount; and
(r) To issue, purchase, sell and transfer, reacquire, hold, trade and deal
in Shares, bonds, debentures and other securities, instruments or other property
of the Trust, from time to time, to such extent as the Board of Trustees shall,
consistent with the provisions of this Declaration of Trust, determine; and to
repurchase, re-acquire and redeem, from time to time, its Shares or, if any, its
bonds, debentures and other securities.
The Trust shall not be limited to investing in obligations maturing before the
possible dissolution of the Trust or one or more of its Series. The Trust shall
not in any way be bound or limited by any present or future law or custom in
regard to investment by fiduciaries. Neither the Trust nor the Trustees shall be
required to obtain any court order to deal with any assets of the Trust or take
any other action hereunder.
The foregoing clauses shall each be construed as purposes, objects and powers,
and it is hereby expressly provided that the foregoing enumeration of specific
purposes, objects and powers shall not be held to limit or restrict in any
manner the powers of the Trust, and that they are in furtherance of, and in
addition to, and not in limitation of, the general powers conferred upon the
Trust by the DBTA and the other laws of the State of Delaware or otherwise; nor
shall the enumeration of one thing be deemed to exclude another, although it be
of like nature, not expressed.
ARTICLE III.
Shares
Section 1. Division of Beneficial Interest. The beneficial interest in the Trust
shall at all times be divided into Shares, all without par value. The number of
Shares authorized hereunder is unlimited. The Board of Trustees may authorize
the division of Shares into separate and distinct Series and the division of any
Series into separate classes of Shares. The different Series and classes shall
be established and designated, and the variations in the relative rights and
preferences as between the different Series and classes shall be fixed and
determined by the Board of Trustees without the requirement of Shareholder
approval. If no separate Series or classes shall be established, the Shares
shall have the rights and preferences provided for herein and in Article III,
Section 6 hereof to the extent relevant and not otherwise provided for herein,
and all references to Series and classes shall be construed (as the context may
require) to refer to the Trust. The fact that a Series shall have initially been
established and designated without any specific establishment or designation of
classes (i.e., that all Shares of such Series are initially of a single class)
shall not limit the authority of the Board of Trustees to establish and
designate separate classes of said Series. The fact that a Series shall have
more than one established and designated class, shall not limit the authority of
the Board of Trustees to establish and designate additional classes of said
Series, or to establish and designate separate classes of the previously
established and designated classes.
The Board of Trustees shall have the power to issue Shares of the Trust, or any
Series or class thereof, from time to time for such consideration (but not less
than the net asset value thereof) and in such form as may be fixed from time to
time pursuant to the direction of the Board of Trustees.
The Board of Trustees may hold as treasury shares, reissue for such
consideration and on such terms as they may determine, or cancel, at their
discretion from time to time, any Shares of any Series reacquired by the Trust.
The Board of Trustees may classify or reclassify any unissued Shares or any
Shares previously issued and reacquired of any Series or class into one or more
Series or classes that may be established and designated from time to time.
Notwithstanding the foregoing, the Trust and any Series thereof may acquire,
hold, sell and otherwise deal in, for purposes of investment or otherwise, the
Shares of any other Series of the Trust or Shares of the Trust, and such Shares
shall not be deemed treasury shares or cancelled.
Subject to the provisions of Section 6 of this Article III, each Share shall
have voting rights as provided in Article V hereof, and the Shareholders of any
Series shall be entitled to receive dividends and distributions, when, if and as
declared with respect thereto in the manner provided in Article IV, Section 3
hereof. No Share shall have any priority or preference over any other Share of
the same Series or class with respect to dividends or distributions paid in the
ordinary course of business or distributions upon dissolution of the Trust or of
such Series or class made pursuant to Article VIII, Section 2 hereof. All
dividends and distributions shall be made ratably among all Shareholders of a
particular class of Series from the Trust Property held with respect to such
Series according to the number of Shares of such class of such Series held of
record by such Shareholders on the record date for any dividend or distribution.
Shareholders shall have no preemptive or other right to subscribe to new or
additional Shares or other securities issued by the Trust or any Series. The
Trustees may from time to time divide or combine the Shares of any particular
Series into a greater or lesser number of Shares of that Series. Such division
or combination may not materially change the proportionate beneficial interests
of the Shares of that Series in the Trust Property held with respect to that
Series or materially affect the rights of Shares of any other Series.
Any Trustee, officer or other agent of the Trust, and any organization in which
any such Person is interested, may acquire, own, hold and dispose of Shares of
the Trust to the same extent as if such Person were not a Trustee, officer or
other agent of the Trust; and the Trust may issue and sell or cause to be issued
and sold and may purchase Shares from any such Person or any such organization
subject only to the general limitations, restrictions or other provisions
applicable to the sale or purchase of such Shares generally.
Section 2. Ownership of Shares. The ownership of Shares shall be recorded on the
books of the Trust kept by the Trust or by a transfer or similar agent for the
Trust, which books shall be maintained separately for the Shares of each Series
and class thereof that has been established and designated. No certificates
certifying the ownership of Shares shall be issued except as the Board of
Trustees may otherwise determine from time to time. The Board of Trustees may
make such rules not inconsistent with the provisions of the 1940 Act as they
consider appropriate for the issuance of Share certificates, the transfer of
Shares of each Series or class and similar matters. The record books of the
Trust as kept by the Trust or any transfer or similar agent, as the case may be,
shall be conclusive as to who are the Shareholders of each Series or class
thereof and as to the number of Shares of each Series or class thereof held from
time to time by each such Shareholder.
Section 3. Investments in the Trust. Investments may be accepted by the Trust
from such Persons, at such times, on such terms, and for such consideration as
the Board of Trustees may, from time to time, authorize. Each investment shall
be credited to the individual Shareholder's account in the form of full and
fractional Shares of the Trust, in such Series or class as the purchaser may
select, at the net asset value per Share next determined for such Series or
class after receipt of the investment; provided, however, that the Principal
Underwriter may, in its sole discretion, impose a sales charge upon investments
in the Trust.
Section 4. Status of Shares and Limitation of Personal Liability. Shares shall
be deemed to be personal property giving to Shareholders only the rights
provided in this Declaration of Trust and under applicable law. Every
Shareholder by virtue of having become a Shareholder shall be held to have
expressly assented and agreed to the terms hereof and to have become a party
hereto. The death of a Shareholder during the existence of the Trust shall not
operate to dissolve the Trust or any Series, nor entitle the representative of
any deceased Shareholder to an accounting or to take any action in court or
elsewhere against the Trust or the Trustees or any Series, but entitles such
representative only to the rights of said deceased Shareholder under this
Declaration of Trust. Ownership of Shares shall not entitle the Shareholder to
any title in or to the whole or any part of the Trust Property or right to call
for a partition or division of the same or for an accounting, nor shall the
ownership of Shares constitute the Shareholders as partners. Neither the Trust
nor the Trustees, nor any officer, employee or agent of the Trust, shall have
any power to bind personally any Shareholder, nor, except as specifically
provided herein, to call upon any Shareholder for the payment of any sum of
money or assessment whatsoever other than such as the Shareholder may at any
time personally agree to pay. All Shares, when issued on the terms determined by
the Board of Trustees, shall be fully paid and nonassessable. As provided in the
DBTA, Shareholders of the Trust shall be entitled to the same limitation of
personal liability extended to stockholders of a private corporation organized
for profit under the general corporation law of the State of Delaware.
Section 5. Power of Board of Trustees to Change Provisions Relating to Shares.
Notwithstanding any other provisions of this Declaration of Trust and without
limiting the power of the Board of Trustees to amend this Declaration of Trust
or the Certificate of Trust as provided elsewhere herein, the Board of Trustees
shall have the power to amend this Declaration of Trust, or the Certificate of
Trust, at any time and from time to time, in such manner as the Board of
Trustees may determine in its sole discretion, without the need for Shareholder
action, so as to add to, delete, replace or otherwise modify any provisions
relating to the Shares contained in this Declaration of Trust; provided that
before adopting any such amendment without Shareholder approval, the Board of
Trustees shall determine that it is consistent with the fair and equitable
treatment of all Shareholders and that Shareholder approval is not otherwise
required by the 1940 Act or other applicable law. If Shares have been issued,
Shareholder approval shall be required to adopt any amendments to this
Declaration of Trust which would adversely affect to a material degree the
rights and preferences of the Shares of any Series or class already issued;
provided, however, that in the event that the Board of Trustees determines that
the Trust shall no longer be operated as an investment company in accordance
with the provisions of the 1940 Act, the Board of Trustees may adopt such
amendments to this Declaration of Trust to delete those terms the Board of
Trustees identifies as being required by the 1940 Act.
Subject to the foregoing Paragraph, the Board of Trustees may amend the
Declaration of Trust to amend any of the provisions set forth in paragraphs (a)
through (i) of Section 6 of this Article III.
The Board of Trustees shall have the power, in its discretion, to make such
elections as to the tax status of the Trust as may be permitted or required
under the Code as currently in effect or as amended, without the vote of any
Shareholder.
Section 6. Establishment and Designation of Series. The establishment and
designation of any Series or class of Shares shall be effective upon the
resolution by a majority of the then Board of Trustees, adopting a resolution
which sets forth such establishment and designation and the relative rights and
preferences of such Series or class. Each such resolution shall be incorporated
herein by reference upon adoption.
Each Series shall be separate and distinct from any other Series and shall
maintain separate and distinct records on the books of the Trust, and the assets
and liabilities belonging to any such Series shall be held and accounted for
separately from the assets and liabilities of the Trust or any other Series.
Shares of each Series or class established pursuant to this Section 6, unless
otherwise provided in the resolution establishing such Series, shall have the
following relative rights and preferences:
(a) Assets Held with Respect to a Particular Series. All consideration received
by the Trust for the issue or sale of Shares of a particular Series, together
with all assets in which such consideration is invested or reinvested, all
income, earnings, profits, and proceeds thereof from whatever source derived,
including, without limitation, any proceeds derived from the sale, exchange or
liquidation of such assets, and any funds or payments derived from any
reinvestment of such proceeds in whatever form the same may be, shall
irrevocably be held with respect to that Series for all purposes, subject only
to the rights of creditors with respect to that Series, and shall be so recorded
upon the books of account of the Trust. Such consideration, assets, income,
earnings, profits and proceeds thereof, from whatever source derived, including,
without limitation, any proceeds derived from the sale, exchange or liquidation
of such assets, and any funds or payments derived from any reinvestment of such
proceeds, in whatever form the same may be, are herein referred to as "assets
held with respect to" that Series. In the event that there are any assets,
income, earnings, profits and proceeds thereof, funds or payments which are not
readily identifiable as assets held with respect to any particular Series
(collectively "General Assets"), the Board of Trustees shall allocate such
General Assets to, between or among any one or more of the Series in such manner
and on such basis as the Board of Trustees, in its sole discretion, deems fair
and equitable, and any General Asset so allocated to a particular Series shall
be held with respect to that Series. Each such allocation by the Board of
Trustees shall be conclusive and binding upon the Shareholders of all Series for
all purposes.
(b) Liabilities Held with Respect to a Particular Series. The assets of the
Trust held with respect to each particular Series shall be charged against the
liabilities of the Trust held with respect to that Series and all expenses,
costs, charges and reserves attributable to that Series, and any liabilities,
expenses, costs, charges and reserves of the Trust that are not readily
identifiable as being held with respect to any particular Series (collectively
"General Liabilities") shall be allocated and charged by the Board of Trustees
to and among any one or more of the Series in such manner and on such basis as
the Board of Trustees in its sole discretion deems fair and equitable. The
liabilities, expenses, costs, charges, and reserves so charged to a Series are
herein referred to as "liabilities held with respect to" that Series. Each
allocation of liabilities, expenses, costs, charges and reserves by the Board of
Trustees shall be conclusive and binding upon the Shareholders of all Series for
all purposes. All Persons who have extended credit that has been allocated to a
particular Series, or who have a claim or contract that has been allocated to
any particular Series, shall look, and shall be required by contract to look
exclusively, to the assets of that particular Series for payment of such credit,
claim, or contract. In the absence of an express contractual agreement so
limiting the claims of such creditors, claimants and contract providers, each
creditor, claimant and contract provider will be deemed nevertheless to have
impliedly agreed to such limitation unless an express provision to the contrary
has been incorporated in the written contract or other document establishing the
creditor, claimant or contract provider relationship.
Subject to the right of the Board of Trustees in its discretion to allocate
General Liabilities as provided herein, the debts, liabilities, obligations and
expenses incurred, contracted for or otherwise existing with respect to a
particular Series, whether such Series is now authorized and existing pursuant
to this Declaration of Trust or is hereafter authorized and existing pursuant to
this Declaration of Trust, shall be enforceable against the assets held with
respect to that Series only, and not against the assets of any other Series or
the Trust generally and none of the debts, liabilities, obligations and expenses
incurred, contracted for or otherwise existing with respect to the Trust
generally or any other Series thereof shall be enforceable against the assets
held with respect to such Series. Notice of this limitation on liabilities
between and among Series shall be set forth in the Certificate of Trust of the
Trust (whether originally or by amendment) as filed or to be filed in the Office
of the Secretary of State of the State of Delaware pursuant to the DBTA, and
upon the giving of such notice in the Certificate of Trust, the statutory
provisions of Section 3804 of the DBTA relating to limitations on liabilities
between and among Series (and the statutory effect under Section 3804 of setting
forth such notice in the Certificate of Trust) shall become applicable to the
Trust and each Series.
(c) Dividends, Distributions, Redemptions and Repurchases. Notwithstanding any
other provisions of this Declaration of Trust, including, without limitation,
Article VI, no dividend or distribution, including without limitation, any
distribution paid upon dissolution of the Trust or of any Series with respect
to, nor any redemption or repurchase of, the Shares of any Series or class shall
be effected by the Trust other than from the assets held with respect to such
Series, nor, except as specifically provided in Section 7 of this Article III,
shall any Shareholder of any particular Series otherwise have any right or claim
against the assets held with respect to any other Series or the Trust generally
except to the extent that such Shareholder has such a right or claim hereunder
as a Shareholder of such other Series. The Board of Trustees shall have full
discretion, to the extent not inconsistent with the 1940 Act, to determine which
items shall be treated as income and which items as capital, and each such
determination and allocation shall be conclusive and binding upon the
Shareholders.
(d) Voting. All Shares of the Trust entitled to vote on a matter shall vote on
the matter, separately by Series and, if applicable, by class; provided that (1)
where the 1940 Act requires all Shares of the Trust to be voted in the
aggregate, without differentiation between the separate Series or classes, on
any matter, then all of the Trust's Shares shall be entitled to vote in the
aggregate on the matter; and (2) if any matter affects only the interests of
some but not all Series or classes, then only the Shares of such affected Series
or classes shall be entitled to vote on the matter.
(e) Equality. All Shares of each particular Series shall represent an equal
proportionate undivided beneficial interest in the assets held with respect to
that Series (subject to the liabilities held with respect to that Series and
such rights and preferences as may have been established and designated with
respect to classes of Shares within such Series), and each Share of any
particular Series shall be equal to each other Share of that Series (subject to
the rights and preferences with respect to separate classes of such Series).
(f) Fractions. Any fractional Share of a Series shall carry proportionately to
the fractional amount of such Share all the rights and obligations of a whole
Share of that Series, including rights with respect to voting, receipt of
dividends and distributions, redemption of Shares and dissolution of the Trust
or that Series.
(g) Exchange Privilege. The Board of Trustees shall have the authority to
provide that the holders of Shares of any Series shall have the right to
exchange said Shares for Shares of one or more other Series in accordance with
such requirements and procedures as may be established by the Board of Trustees,
and in accordance with the 1940 Act and the rules and regulations thereunder.
(h) Combination of Series. The Board of Trustees shall have the authority,
without the approval of the Shareholders of any Series unless otherwise required
by applicable law, to combine the assets and liabilities held with respect to
any two or more Series into assets and liabilities held with respect to a single
Series; provided that upon completion of such combination of Series, the
proportionate interest of each Shareholder of each Series that is combined, in
the assets and liabilities held with respect to the combined Series shall equal
the proportionate interest that such Shareholder held in the assets and
liabilities held with respect to the Series that is combined.
(i) Elimination of Series. At any time that there are no Shares outstanding of
any particular Series or class previously established and designated, the Board
of Trustees may by resolution of a majority of the then Board of Trustees
abolish that Series or class and rescind the establishment and designation
thereof. Each such resolution shall be incorporated herein by reference upon
adoption.
Section 7. Indemnification of Shareholders. If any Shareholder or former
Shareholder shall be exposed to liability by reason of a claim or demand
relating solely to his or her being or having been a Shareholder of the Trust
(or by having been a Shareholder of a particular Series), and not because of
such Person's acts or omissions, the Shareholder or former Shareholder (or, in
the case of a natural person, his or her heirs, executors, administrators, or
other legal representatives or, in the case of a corporation or other entity,
its corporate or other general successor) shall be entitled to be held harmless
from, and indemnified out of the assets of the Trust or out of the assets of the
applicable Series (as the case may be) against, all loss and expense arising
from such claim or demand; provided, however, that there shall be no liability
or obligation of the Trust (or any particular Series) arising hereunder to
reimburse any Shareholder for taxes paid by reason of such Shareholder's
ownership of any Shares.
ARTICLE IV.
The Board of Trustees
Section 1. Number, Election and Tenure. The number of Trustees constituting the
Board of Trustees may be fixed from time to time by a written instrument signed,
or by resolution approved at a duly constituted meeting, by a majority of the
Board of Trustees, provided, however, that the number of Trustees shall in no
event be less than one (1) nor more than fifteen (15). The Board of Trustees, by
action of a majority of the then Trustees at a duly constituted meeting, may
fill vacancies in the Board of Trustees or remove any Trustee with or without
cause. The Shareholders may elect Trustees, including filling any vacancies in
the Board of Trustees, at any meeting of Shareholders called by the Board of
Trustees for that purpose. A meeting of Shareholders for the purpose of electing
one or more Trustees may be called by the Board of Trustees or, to the extent
provided by the 1940 Act and the rules and regulations thereunder, by the
Shareholders. Shareholders shall have the power to remove a Trustee only to the
extent provided by the 1940 Act and the rules and regulations thereunder.
Each Trustee shall serve during the continued lifetime of the Trust until he or
she dies, resigns, is declared bankrupt or incompetent by a court of appropriate
jurisdiction, or is removed, or, if sooner than any of such events, until the
next meeting of Shareholders called for the purpose of electing Trustees and
until the election and qualification of his or her successor. Any Trustee may
resign at any time by written instrument signed by him or her and delivered to
any officer of the Trust or to a meeting of the Board of Trustees. Such
resignation shall be effective upon receipt unless specified to be effective at
some later time. Except to the extent expressly provided in a written agreement
with the Trust, no Trustee that resigns or is removed shall have any right to
any compensation for any period following any such event or any right to damages
on account of such events or any actions taken in connection therewith following
his or her resignation or removal.
Section 2. Effect of Death, Resignation, Removal, etc. of a Trustee. The death,
declination, resignation, retirement, removal, declaration as bankrupt or
incapacity of one or more Trustees, or of all of them, shall not operate to
dissolve the Trust or any Series or to revoke any existing agency created
pursuant to the terms of this Declaration of Trust. Whenever a vacancy in the
Board of Trustees shall occur, until such vacancy is filled as provided in this
Article IV, Section 1, the Trustee(s) in office, regardless of the number, shall
have all the powers granted to the Board of Trustees and shall discharge all the
duties imposed upon the Board of Trustees by this Declaration of Trust. In the
event of the death, declination, resignation, retirement, removal, declaration
as bankrupt or incapacity of all of the then Trustees, the Trust's Investment
Adviser or Advisers is or are, as the case may be, empowered to appoint new
Trustees subject to the provisions of Section 16(a) of the 1940 Act.
Section 3. Powers. Subject to the provisions of this Declaration of Trust, the
business of the Trust shall be managed by the Board of Trustees, and such Board
of Trustees shall have all powers necessary or convenient to carry out that
responsibility, including, without limitation, the power to engage in securities
or other transactions of all kinds on behalf of the Trust. The Board of Trustees
shall have full power and authority to do any and all acts and to make and
execute any and all contracts and instruments that it may consider necessary or
appropriate in connection with the administration of the Trust. The Trustees
shall not be bound or limited by present or future laws or customs with regard
to investment by trustees or fiduciaries, but shall have full authority and
absolute power and control over the assets of the Trust and the business of the
Trust to the same extent as if the Trustees were the sole owners of the assets
and business of the Trust in their own right, including such authority, power
and control to do all acts and things as they, in their sole discretion, shall
deem proper to accomplish the purposes of this Trust. Without limiting the
foregoing, the Trustees may (1) adopt, amend and repeal By-Laws, not
inconsistent with this Declaration of Trust, that provide for the regulation and
management of the affairs of the Trust; (2) fill vacancies in or remove from
their number in accordance with this Declaration of Trust or the By-Laws, and
may elect and remove such officers and appoint and terminate such agents as they
consider appropriate; (3) appoint from their own number and establish and
terminate one or more committees consisting of two or more Trustees which may
exercise the powers and authority of the Board of Trustees to the extent that
the Board of Trustees determine; (4) employ one or more custodians of the Trust
Property and may authorize such custodians to employ subcustodians and to
deposit all or any part of such Trust Property in a system or systems for the
central handling of securities or with a Federal Reserve Bank; (5) retain a
transfer agent, dividend disbursing agent, a shareholder servicing agent or
administrative services agent, or all of them; (6) provide for the issuance and
distribution of Shares by the Trust directly or through one or more Principal
Underwriters or otherwise; (7) retain one or more Investment Advisers; (8)
redeem, repurchase or transfer Shares pursuant to applicable law; (9) set record
dates for the determination of Shareholders with respect to various matters, in
the manner provided in Article V, Section 5 of this Declaration of Trust; (10)
declare and pay dividends and distributions to Shareholders from the Trust
Property; (11) establish from time to time, in accordance with the provisions of
Article III, Section 6 hereof, any Series or class of Shares, each such Series
to operate as a separate and distinct investment medium and with separately
defined investment objectives and policies and distinct investment purposes; and
(12) in general delegate such authority as they consider desirable to any
officer of the Trust, any committee of the Board of Trustees, any agent or
employee of the Trust, or any such custodian, transfer agent, dividend
disbursing agent, shareholder servicing agent, administrative services agent,
Principal Underwriter or Investment Adviser. Any determination as to what is in
the best interests of the Trust made by the Board of Trustees in good faith
shall be conclusive.
In construing the provisions of this Declaration of Trust, the presumption shall
be in favor of a grant of power to the Trustees. Unless otherwise specified
herein or required by law, any action by the Board of Trustees shall be deemed
effective if approved or taken by a majority of the Trustees then in office.
Any action required or permitted to be taken by the Board of Trustees, or a
committee thereof, may be taken without a meeting if a majority of the members
of the Board of Trustees, or committee thereof, as the case may be, shall
individually or collectively consent in writing to that action. Such action by
written consent shall have the same force and effect as a majority vote of the
Board of Trustees, or committee thereof, as the case may be. Such written
consent or consents shall be filed with the minutes of the proceedings of the
Board of Trustees, or committee thereof, as the case may be.
The Trustees shall devote to the affairs of the Trust such time as may be
necessary for the proper performance of their duties hereunder, but the Trustees
are not expected to devote their full time to the performance of such duties.
The Trustees, or any Affiliate partner or employee thereof, may engage in, or
possess an interest in, any other business or venture of any nature and
description, independently or with or for the account of others.
Section 4. Payment of Expenses by the Trust. The Board of Trustees is authorized
to pay or cause to be paid out of the principal or income of the Trust or any
particular Series or class of Shares, or partly out of the principal and partly
out of the income of the Trust or any particular Series or class of Shares and
to charge or allocate the same to, between or among such one or more of the
Series or classes of Shares, as the Board of Trustees deems fair and in
compliance with this Declaration of Trust, including particularly Article III,
Section 6 hereof, all expenses, fees, charges, taxes and liabilities incurred by
or arising in connection with the maintenance or operation of the Trust or a
particular Series or class of Shares, or in connection with the management
thereof, including, but not limited to, the Trustees' compensation and such
expenses, fees, charges, taxes and liabilities for the services of the Trust's
officers, employees, Investment Adviser, Principal Underwriter, auditors,
counsel, custodian, sub-custodian (if any), transfer agent, dividend disbursing
agent, shareholder servicing agent, administrative services agent, and such
other agents or independent contractors and such other expenses, fees, charges,
taxes and liabilities as the Board of Trustees may deem necessary or proper to
incur.
Section 5. Payment of Expenses by Shareholders. The Board of Trustees shall have
the power, as frequently as it may determine, to cause each Shareholder of the
Trust, or each Shareholder of any particular Series, to pay directly, in advance
or arrears, for charges of the Trust's custodian or transfer, dividend
disbursing, shareholder servicing, administrative services or similar agent, an
amount fixed from time to time by the Board of Trustees, by setting off such
charges due from such Shareholder from declared but unpaid dividends or
distributions owed such Shareholder and/or by reducing the number of Shares in
the account of such Shareholder by that number of full and/or fractional Shares
which represents the outstanding amount of such charges due from such
Shareholder.
Section 6. Ownership of Trust Property. Legal title to all of the Trust Property
shall at all times be considered to be vested in the Trust, except that the
Board of Trustees shall have the power to cause legal title to any Trust
Property to be held by or in the name of any Person as nominee, on such terms as
the Board of Trustees may determine, in accordance with applicable law.
Section 7. Service Contracts.
(a) Subject to such requirements and restrictions as may be set forth in the
By-Laws and/or the 1940 Act, the Board of Trustees may, at any time and from
time to time, contract for exclusive or nonexclusive advisory, management and/or
administrative services for the Trust or for any Series with any corporation,
trust, association or other organization, including any Affiliate; and any such
contract may contain such other terms as the Board of Trustees may determine,
including without limitation, authority for the Investment Adviser or
administrator to determine from time to time without prior consultation with the
Board of Trustees what securities and other instruments or property shall be
purchased or otherwise acquired, owned, held, invested or reinvested in, sold,
exchanged, transferred, mortgaged, pledged, assigned, negotiated, or otherwise
dealt with or disposed of, and what portion, if any, of the Trust Property shall
be held uninvested and to make changes in the Trust's or a particular Series'
investments, or such other activities as may specifically be delegated to such
party.
(b) The Board of Trustees may also, at any time and from time to time, contract
with any corporation, trust, association or other organization, including any
Affiliate, appointing it or them as the exclusive or nonexclusive distributor or
Principal Underwriter for the Shares of the Trust or one or more of the Series
or classes thereof or for other securities to be issued by the Trust, or
appointing it or them to act as the custodian, transfer agent, dividend
disbursing agent and/or shareholder servicing agent for the Trust or one or more
of the Series or classes thereof.
(c) The Board of Trustees is further empowered, at any time and from time to
time, to contract with any Persons to provide such other services to the Trust
or one or more of its Series, as the Board of Trustees determines to be in the
best interests of the Trust or one or more of its Series.
(d) The fact that:
(i) any of the Shareholders, Trustees, employees or officers of the Trust is a
shareholder, director, officer, partner, trustee, employee, manager,
Adviser, Principal Underwriter, distributor, or Affiliate or agent of or
for any corporation, trust, association, or other organization, or for any
parent or Affiliate of any organization, with which an Adviser's,
management or administration contract, or Principal Underwriter's or
distributor's contract, or custodian, transfer, dividend disbursing,
shareholder servicing or other type of service contract may have been or
may hereafter be made,
(ii) any such organization, or any parent or Affiliate thereof, is a Shareholder
or has an interest in the Trust, or
(iii)any corporation, trust, association or other organization with which an
Adviser's, management or administration contract or Principal Underwriter's
or distributor's contract, or custodian, transfer, dividend disbursing,
shareholder servicing or other type of service contract may have been or
may hereafter be made also has an Adviser's, management or administration
contract, or Principal Underwriter's or distributor's contract, or
custodian, transfer, dividend disbursing, shareholder servicing or other
service contract with one or more other corporations, trusts, associations,
or other organizations, or has other business or interests, shall not
affect the validity of any such contract or disqualify any Shareholder,
Trustee, employee or officer of the Trust from voting upon or executing the
same, or create any liability or accountability to the Trust or its
Shareholders, provided that the establishment of and performance under each
such contract is permissible under the provisions of the 1940 Act.
(e) Every contract referred to in this Section 7 shall comply with such
requirements and restrictions as may be set forth in the By-Laws or the
1940 Act or stipulated by resolution of the Board of Trustees. Any such
contract may contain such other terms as the Board of Trustees may
determine.
ARTICLE V.
Shareholders' Voting Powers and Meetings
Section 1. Voting Powers. Subject to the provisions of Article III, Section
6(d), the Shareholders shall have power to vote only (i) for the election of
Trustees, including the filling of any vacancies in the Board of Trustees, as
provided in Article IV, Section 1; (ii) with respect to such additional matters
relating to the Trust as may be required by this Declaration of Trust, the
By-Laws, the 1940 Act or any registration statement of the Trust filed with the
Commission; and (iii) on such other matters as the Board of Trustees may
consider necessary or desirable. The Shareholder of record (as of the record
date established pursuant to Section 5 of this Article V) of each Share shall be
entitled to one vote for each full Share, and a fractional vote for each
fractional Share. Shareholders shall not be entitled to cumulative voting in the
election of Trustees or on any other matter. Shares may be voted in person or by
proxy.
Section 2. Meetings. Meetings of the Shareholders may be called by the Board of
Trustees for the purpose of electing Trustees as provided in Article IV, Section
1 and for such other purposes as may be prescribed by law, this Declaration of
Trust or the By-Laws. Meetings of the Shareholders may also be called by the
Board of Trustees from time to time for the purpose of taking action upon any
other matter deemed by the Board of Trustees to be necessary or desirable.
Section 3. Quorum and Required Vote. Except when a larger quorum is required by
applicable law, the By-Laws or this Declaration of Trust, thirty-three and
one-third percent (33-1/3%) of the Shares present in person or represented by
proxy and entitled to vote at a Shareholders' meeting shall constitute a quorum
at such meeting. When a separate vote by one or more Series or classes is
required, thirty-three and one-third percent (33-1/3%) of the Shares of each
such Series or class present in person or represented by proxy and entitled to
vote shall constitute a quorum at a Shareholders' meeting of such Series or
class. Subject to the provisions of Article III, Section 6(d), Article VIII,
Section 4 and any other provision of this Declaration of Trust, the By-Laws or
applicable law which requires a different vote: (1) in all matters other than
the election of Trustees, the affirmative vote of the majority of votes cast at
a Shareholders' meeting at which a quorum is present shall be the act of the
Shareholders; and (2) Trustees shall be elected by a plurality of the votes cast
at a Shareholders' meeting at which a quorum is present.
Section 4. Shareholder Action by Written Consent without a Meeting. Any action
which may be taken at any meeting of Shareholders may be taken without a meeting
and without prior notice if a consent in writing setting forth the action so
taken is signed by the holders of Shares having not less than the minimum number
of votes that would be necessary to authorize or take that action at a meeting
at which all Shares entitled to vote on that action were present and voted. All
such consents shall be filed with the secretary of the Trust and shall be
maintained in the Trust's records. Any Shareholder giving a written consent, the
Shareholder's proxy holders, a transferee of the Shares (prior to the record
date), a personal representative of the Shareholder or its respective
proxy-holder may revoke the consent by a writing received by the secretary of
the Trust before written consents of the number of Shares required to authorize
the proposed action have been filed with the secretary.
If the consents of all Shareholders entitled to vote have not been solicited in
writing and if the unanimous written consent of all such Shareholders shall not
have been received, the secretary shall give prompt notice of the action taken
without a meeting to such Shareholders. This notice shall be given in the manner
specified in the By-Laws.
Section 5. Record Dates. For purposes of determining the Shareholders entitled
to notice of any meeting, to vote at any meeting, or to give consent to action
without a meeting, the Board of Trustees may fix in advance a record date which
shall not be more than one hundred eighty (180) days nor less than seven (7)
days before the date of any such meeting.
If the Board of Trustees does not so fix a record date:
(a) The record date for determining Shareholders entitled to notice of or to
vote at a meeting of Shareholders shall be at the close of business on the
business day next preceding the day on which notice is given or, if notice is
waived, at the close of business on the business day which is five (5) business
days next preceding to the day on which the meeting is held.
(b) The record date for determining Shareholders entitled to give consent to
action in writing without a meeting, (i) when no prior action by the Board of
Trustees has been taken, shall be the day on which the first written consent is
given, or (ii) when prior action of the Board of Trustees has been taken, shall
be at the close of business on the day on which the Board of Trustees adopts the
resolution taking such prior action or the seventy-fifth (75th) day before the
date of such other action, whichever is later.
For the purpose of determining the Shareholders of any Series or class who are
entitled to receive payment of any dividend or of any other distribution, the
Board of Trustees may from time to time fix a date, which shall be before the
date for the payment of such dividend or such other distribution, as the record
date for determining the Shareholders of such Series or class having the right
to receive such dividend or distribution. Nothing in this Section shall be
construed as precluding the Board of Trustees from setting different record
dates for different Series or classes.
Section 6. Additional Provisions. The By-Laws may include further provisions for
Shareholders' votes, meetings and related matters.
ARTICLE VI.
Net Asset Value, Distributions and Redemptions
Section 1. Determination of Net Asset Value, Net Income and Distributions.
Subject to Article III, Section 6 hereof, the Board of Trustees shall have the
power to fix an initial offering price for the Shares of the Trust, or any
Series or class thereof which shall yield to the Trust, such Series or class not
less than the net asset value thereof, at which price the Shares of the Trust,
such Series or class shall be offered initially for sale, and to determine from
time to time thereafter the offering price which shall yield to the Trust, such
Series or class not less than the net asset value thereof from sales of the
Shares of the Trust, such Series or class; provided, however, that no Shares of
the Trust or Series or class thereof shall be issued or sold for consideration
which shall yield to the Trust, such Series or class less than the net asset
value of the Shares of the Trust, such Series or class next determined after the
receipt of the order (or at such other times set by the Board of Trustees),
except in the case of Shares of the Trust, such Series or class issued in
payment of a dividend properly declared and payable.
Subject to Article III, Section 6 hereof, the Board of Trustees, in their
absolute discretion, may prescribe and shall set forth in the By-laws or in a
duly adopted vote of the Board of Trustees such bases and time for determining
the per Share or net asset value of the Shares of the Trust, any Series or class
of a Series or net income attributable to the Shares of the Trust, any Series or
class of a Series, or the declaration and payment of dividends and distributions
on the Shares of the Trust, any Series or class of a Series, as they may deem
necessary or desirable.
Section 2. Redemptions at the Option of a Shareholder. Unless otherwise provided
in the prospectus of the Trust relating to the Shares of the Trust or Series
thereof, as such prospectus may be amended from time to time ("Prospectus"):
(a) The Trust shall purchase such Shares as are offered by any Shareholder for
redemption, upon the presentation of a proper instrument of transfer together
with a request directed to the Trust or a Person designated by the Trust that
the Trust purchase such Shares or in accordance with such other procedures for
redemption as the Board of Trustees may from time to time authorize; and the
Trust will pay therefor the net asset value thereof, in accordance with the
By-Laws and applicable law. Payment for said Shares shall be made by the Trust
to the Shareholder within seven days after the date on which the request is
received in proper form. The obligation set forth in this Section 2 is subject
to the provision that (i) in the event that the New York Stock Exchange (the
"Exchange") is closed for other than weekends or holidays, (ii) if permitted by
the Rules of the Commission during periods when trading on the Exchange is
restricted or during any National Financial Emergency which makes it
impracticable for the Trust to dispose of the investments of the Trust or
applicable Series or to determine fairly the value of the net assets of the
Trust or held with respect to such Series, or (iii) during any other period
permitted by order of the Commission for the protection of investors, such
obligations may be suspended or postponed by the Board of Trustees. If
certificates have been issued to a Shareholder, any such request by such
Shareholder must be accompanied by surrender of any outstanding certificate or
certificates for such Shares in form for transfer, together with such proof of
the authenticity of signatures as may reasonably be required on such Shares and
accompanied by proper stock transfer stamps, if applicable.
(b) Payments for Shares so redeemed by the Trust shall be made in cash, except
payment for such Shares may, at the option of the Board of Trustees, or such
officer or officers as the Board of Trustees may duly authorize in its complete
discretion, be made in kind, or partially in cash and partially in kind. In case
of any payment in kind, the Board of Trustees, or its delegate, shall have
absolute discretion as to what security or securities of the Trust shall be
distributed in kind and the amount of the same; and the securities distributed
shall be valued for purposes of distribution at the value at which they were
appraised in computing the then current net asset value of the Shares, provided
that any Shareholder who cannot legally acquire securities so distributed in
kind by reason of the prohibitions of the 1940 Act or the provisions of the
Employee Retirement Income Security Act of 1974, as amended ("ERISA"), shall
receive cash. Shareholders shall bear the expenses of in-kind transactions,
including, but not limited to, transfer agency fees, custodian fees and costs of
disposition of such securities.
(c) Payment for Shares so redeemed by the Trust shall be made by the Trust as
provided above within seven days after the date on which the redemption request
is received in good order; provided, however, that if payment shall be made
other than exclusively in cash, any securities to be delivered as part of such
payment shall be delivered as promptly as any necessary transfers of such
securities on the books of the several corporations whose securities are to be
delivered practicably can be made, which may not necessarily occur within such
seven-day period. Moreover, redemptions may be suspended in the event of a
National Financial Emergency. In no case shall the Trust be liable for any delay
of any corporation or other Person in transferring securities selected for
delivery as all or part of any payment in kind.
(d) The right of Shareholders to receive dividends or other distributions on
Shares may be set forth in a Plan adopted by the Board of Trustees and amended
from time to time pursuant to Rule 18f-3 under the 1940 Act. The right of any
Shareholder of the Trust to receive dividends or other distributions on Shares
redeemed and all other rights of such Shareholder with respect to the Shares so
redeemed by the Trust, except the right of such Shareholder to receive payment
for such Shares, shall cease at the time as of which the purchase price of such
Shares shall have been fixed, as provided above.
Section 3. Redemptions at the Option of the Trust. The Board of Trustees may,
from time to time, without the vote or consent of the Shareholders, and subject
to the 1940 Act, redeem Shares or authorize the closing of any Shareholder
account, subject to such conditions as may be established by the Board of
Trustees.
ARTICLE VII.
Compensation and Limitation of Liability of
Officers and Trustees
Section 1. Compensation. Except as set forth in the last sentence of this
Section 1, the Board of Trustees may, from time to time, fix a reasonable amount
of compensation to be paid by the Trust to the Trustees and officers of the
Trust. Nothing herein shall in any way prevent the employment of any Trustee for
advisory, management, legal, accounting, investment banking or other services
and payment for the same by the Trust.
Section 2. Indemnification and Limitation of Liability.
(a) To the fullest extent that limitations on the liability of Trustees and
officers are permitted by the DBTA, the officers and Trustees shall not be
responsible or liable in any event for any act or omission of any agent,
employee, Investment Adviser or Principal Underwriter of the Trust; or with
respect to each Trustee and officer, the act or omission of any other Trustee or
officer, respectively. The Trust, out of the Trust Property, shall indemnify and
hold harmless each and every officer and Trustee from and against any and all
claims and demands whatsoever arising out of or related to such officer's or
Trustee's performance of his or her duties as an officer or Trustee of the
Trust. This limitation on liability applies to events occurring at the time a
Person serves as a Trustee or officer of the Trust whether or not such Person is
a Trustee or officer at the time of any proceeding in which liability is
asserted. Nothing herein contained shall indemnify, hold harmless or protect any
officer or Trustee from or against any liability to the Trust or any Shareholder
to which such Person would otherwise be subject by reason of willful
misfeasance, bad faith, gross negligence or reckless disregard of the duties
involved in the conduct of such Person's office.
(b) Every note, bond, contract, instrument, certificate or undertaking and every
other act or document whatsoever issued, executed or done by or on behalf of the
Trust, the officers or the Trustees or any of them in connection with the Trust
shall be conclusively deemed to have been issued, executed or done only in such
Person's capacity as Trustee and/or as officer, and such Trustee or officer, as
applicable, shall not be personally liable therefore, except as described in the
last sentence of the first paragraph of this Section 2 of this Article VII.
Section 3. Officers and Trustees' Good Faith Action, Expert Advice, No Bond or
Surety. The exercise by the Trustees of their powers and discretions hereunder
shall be binding upon everyone interested. An officer or Trustee shall be liable
to the Trust and to any Shareholder solely for such officer's or Trustee's own
willful misfeasance, bad faith, gross negligence or reckless disregard of the
duties involved in the conduct of the office of such officer or Trustee, and for
nothing else, and shall not be liable for errors of judgment or mistakes of fact
or law. The officers and Trustees may obtain the advice of counsel or other
experts with respect to the meaning and operation of this Declaration of Trust
and their duties as officers or Trustees. No such officer or Trustee shall be
liable for any act or omission in accordance with such advice and no inference
concerning liability shall arise from a failure to follow such advice. The
officers and Trustees shall not be required to give any bond as such, nor any
surety if a bond is required.
Section 4. Insurance. To the fullest extent permitted by applicable law, the
officers and Trustees shall be entitled and have the authority to purchase with
Trust Property, insurance for liability and for all expenses reasonably
incurred, paid or expected to be paid by a Trustee or officer in connection with
any claim, action, suit or proceeding in which such Person becomes involved by
virtue of such Person's capacity or former capacity with the Trust, whether or
not the Trust would have the power to indemnify such Person against such
liability under the provisions of this Article.
ARTICLE VIII.
Miscellaneous
Section 1. Liability of Third Persons Dealing with Trustees. No person dealing
with the Trustees shall be bound to make any inquiry concerning the validity of
any actions made or to be made by the Trustees.
Section 2. Dissolution of Trust or Series. Unless dissolved as provided herein,
the Trust shall have perpetual existence. The Trust may be dissolved at any time
by vote of a majority of the Shares of the Trust entitled to vote or by the
Board of Trustees by written notice to the Shareholders. Any Series may be
dissolved at any time by vote of a majority of the Shares of that Series or by
the Board of Trustees by written notice to the Shareholders of that Series.
Upon dissolution of the Trust (or a particular Series, as the case may be), the
Trustees shall (in accordance with ss. 3808 of the DBTA) pay or make reasonable
provision to pay all claims and obligations of the Trust and/or each Series (or
the particular Series, as the case may be), including all contingent,
conditional or unmatured claims and obligations known to the Trust, and all
claims and obligations which are known to the Trust but for which the identity
of the claimant is unknown. If there are sufficient assets held with respect to
the Trust and/or each Series of the Trust (or the particular Series, as the case
may be), such claims and obligations shall be paid in full and any such
provisions for payment shall be made in full. If there are insufficient assets
held with respect to the Trust and/or each Series of the Trust (or the
particular Series, as the case may be), such claims and obligations shall be
paid or provided for in accordance with Article III, Section 6, according to
their priority and, among claims and obligations of equal priority, ratably to
the extent of assets available therefor. Any remaining assets (including without
limitation, cash, securities or any combination thereof) held with respect to
the Trust and/or each Series of the Trust (or the particular Series, as the case
may be) shall be distributed to the Shareholders of the Trust and/or such Series
(or the particular Series) in accordance with Article III, Section 6, and
ratably according to the number of Shares of the Trust and/or such Series (or
the particular Series) held by the several Shareholders on the record date for
such dissolution distribution.
Section 3. Merger and Consolidation; Conversion.
(a) Merger and Consolidation. Pursuant to an agreement of merger or
consolidation, the Trust, or any one or more Series, may, by act of a majority
of the Board of Trustees, merge or consolidate with or into one or more business
trusts or other business entities formed or organized or existing under the laws
of the State of Delaware or any other state or the United States or any foreign
country or other foreign jurisdiction. Any such merger or consolidation shall
not require the vote of the Shareholders affected thereby, unless such vote is
required by the 1940 Act, or unless such merger or consolidation would result in
an amendment of this Declaration of Trust which would otherwise require the
approval of such Shareholders. In accordance with Section 3815(f) of the DBTA,
an agreement of merger or consolidation may effect any amendment to this
Declaration of Trust or the By-Laws or effect the adoption of a new declaration
of trust or by-laws of the Trust if the Trust is the surviving or resulting
business trust. Upon completion of the merger or consolidation, the Trustees
shall file a certificate of merger or consolidation in accordance with Section
3810 of the DBTA.
(b) Conversion. A majority of the Board of Trustees may, without the vote or
consent of the Shareholders, cause (i) the Trust to convert to a common-law
trust, a general partnership, limited partnership or a limited liability company
organized, formed or created under the laws of the State of Delaware as
permitted pursuant to Section 3821 of the DBTA; (ii) the Shares of the Trust or
any Series to be converted into beneficial interests in another business trust
(or series thereof) created pursuant to this Section 3 of this Article VIII, or
(iii) the Shares to be exchanged under or pursuant to any state or federal
statute to the extent permitted by law; provided, however, that if required by
the 1940 Act, no such statutory conversion, Share conversion or Share exchange
shall be effective unless the terms of such transaction shall first have been
approved at a meeting called for that purpose by the "vote of a majority of the
outstanding voting securities," as such phrase is defined in the 1940 Act, of
the Trust or Series, as applicable; provided, further, that in all respects not
governed by statute or applicable law, the Board of Trustees shall have the
power to prescribe the procedure necessary or appropriate to accomplish a sale
of assets, merger or consolidation including the power to create one or more
separate business trusts to which all or any part of the assets, liabilities,
profits or losses of the Trust may be transferred and to provide for the
conversion of Shares of the Trust or any Series into beneficial interests in
such separate business trust or trusts (or series thereof).
Section 4. Reorganization.
A majority of the Board of Trustees may cause the Trust to sell, convey and
transfer all or substantially all of the assets of the Trust, or all or
substantially all of the assets held with respect to any one or more Series (the
"Acquired Series"), to another trust, business trust, partnership, limited
partnership, limited liability company, association or corporation organized
under the laws of any state, or to one or more separate series thereof, or to
the Trust to be held as assets held with respect to one or more other Series of
the Trust, in exchange for cash, shares or other securities (including, without
limitation, in the case of a transfer to another Series of the Trust, Shares of
such other Series) with such transfer either (a) being made subject to, or with
the assumption by the transferee of, the liabilities of the Trust or the
liabilities held with respect to each Acquired Series, or (b) not being made
subject to, or not with the assumption of, such liabilities; provided, however,
that, if required by the 1940 Act, no assets held with respect to any particular
Series shall be so sold, conveyed or transferred unless the terms of such
transaction shall first have been approved at a meeting called for that purpose
by the "vote of a majority of the outstanding voting securities," as such phrase
is defined in the 1940 Act, of that Series. Following such sale, conveyance and
transfer, the Board of Trustees shall distribute such cash, shares or other
securities (giving due effect to the assets and liabilities held with respect to
the Acquired Series, and any other differences between or among the Acquired
Series), ratably among the Shareholders of the Trust or the Acquired Series,
(giving due effect to the differences among the various classes within the Trust
or each such Acquired Series); and if all of the assets of the Trust have been
so sold, conveyed and transferred, the Trust shall be dissolved.
Section 5. Amendments.
Subject to the provisions of the second paragraph of this Section 5 of this
Article VIII, this Declaration of Trust may be restated and/or amended at any
time by an instrument in writing signed by a majority of the then Board of
Trustees and, if required, by approval of such amendment by Shareholders in
accordance with Article V, Section 3 hereof. Any such restatement and/or
amendment hereto shall be effective immediately upon execution and approval or
upon such future date and time as may be stated therein. The Certificate of
Trust of the Trust may be restated and/or amended by a similar procedure, and
any such restatement and/or amendment shall be effective immediately upon filing
with the Office of the Secretary of State of the State of Delaware or upon such
future date as may be stated therein.
Notwithstanding the above, the Board of Trustees expressly reserves the right to
amend or repeal any provisions contained in this Declaration of Trust or the
Certificate of Trust, in accordance with the provisions of Section 5 of Article
III hereof, and all rights, contractual and otherwise, conferred upon
Shareholders are granted subject to such reservation. The Board of Trustees
further expressly reserves the right to amend or repeal any provision of the
By-Laws pursuant to Article X of the By-Laws.
Section 6. Filing of Copies, References, Headings. The original or a copy of
this Declaration of Trust and of each restatement and/or amendment hereto shall
be kept at the principal executive office of the Trust where it may be inspected
by any Shareholder. Anyone dealing with the Trust may rely on a certificate by
an officer of the Trust as to whether or not any such restatements and/or
amendments have been made and as to any matters in connection with the Trust
hereunder; and, with the same effect as if it were the original, may rely on a
copy certified by an officer of the Trust to be a copy of this instrument or of
any such restatements and/or amendments. In this Declaration of Trust and in any
such restatements and/or amendments, references to this instrument, and all
expressions of similar effect to "herein," "hereof" and "hereunder," shall be
deemed to refer to this instrument as amended or affected by any such
restatements and/or amendments. Headings are placed herein for convenience of
reference only and shall not be taken as a part hereof or control or affect the
meaning, construction or effect of this instrument. Whenever the singular number
is used herein, the same shall include the plural; and the neuter, masculine and
feminine genders shall include each other, as applicable. This instrument may be
executed in any number of counterparts, each of which shall be deemed an
original.
Section 7. Applicable Law. This Declaration of Trust is created under and is to
be governed by and construed and administered according to the laws of the State
of Delaware and the applicable provisions of the 1940 Act and the Code. The
Trust shall be a Delaware business trust pursuant to the DBTA, and without
limiting the provisions hereof, the Trust may exercise all powers that are
ordinarily exercised by such a business trust.
Section 8. Provisions in Conflict with Law or Regulations. (a) The provisions of
this Declaration of Trust are severable, and if the Board of Trustees shall
determine, with the advice of counsel, that any of such provisions is in
conflict with the 1940 Act, the Code, the DBTA, or with other applicable laws
and regulations, the conflicting provision shall be deemed not to have
constituted a part of this Declaration of Trust from the time when such
provisions became inconsistent with such laws or regulations; provided, however,
that such determination shall not affect any of the remaining provisions of this
Declaration of Trust or render invalid or improper any action taken or omitted
prior to such determination.
(b) If any provision of this Declaration of Trust shall be held invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall
attach only to such provision in such jurisdiction and shall not in any manner
affect such provision in any other jurisdiction or any other provision of this
Declaration of Trust in any jurisdiction.
Section 9. Business Trust Only. It is the intention of the Trustees to create a
business trust pursuant to the DBTA, and thereby to create the relationship of
trustee and beneficial owners within the meaning of the DBTA between the
Trustees and each Shareholder. It is not the intention of the Trustees to create
a general or limited partnership, limited liability company, joint stock
association, corporation, bailment, or any form of legal relationship other than
a business trust pursuant to the DBTA. Nothing in this Declaration of Trust
shall be construed to make the Shareholders, either by themselves or with the
Trustees, partners or members of a joint stock association.
IN WITNESS WHEREOF, the Trustees named below do hereby make and enter into this
Declaration of Trust as of the date first written above.
/s/ Xxxxxx X. Xxxxxx /s/ Xxxxxx X. Xxxxxx, XX
Xxxxxx X. Xxxxxx Xxxxxx X. Xxxxxx, XX
Trustee Trustee
/s/ Xxxxx X. Xxxxxx /s/ Xxxxxxx X. Xxxxxxxx
Xxxxx X. Xxxxxx Xxxxxxx X. Xxxxxxxx
Trustee Trustee
/s/ Xxxxxxx X. Xxxxx
Xxxxxxx X. Xxxxx
Trustee
