SECOND AMENDED AND RESTATED AGREEMENT AND DECLARATION OF TRUST of HC Capital Trust a Delaware Business Trust Principal Place of Business: Five Tower Bridge, 300 Barr Harbor, Suite 500 West Conshohocken, PA 19428-2970
Exhibit (a)(3)
SECOND AMENDED AND RESTATED AGREEMENT AND DECLARATION OF TRUST
of
a Delaware Business Trust
Principal Place of Business:
Five Tower Bridge, 000 Xxxx Xxxxxx, Xxxxx 000
Xxxx Xxxxxxxxxxxx, XX 00000-0000
Xxxx Xxxxxxxxxxxx, XX 00000-0000
TABLE OF CONTENTS
ARTICLE I
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Name and Definitions |
1 | |||
Section 1. Name |
1 | |||
Section 2. Definitions. |
1 | |||
ARTICLE II |
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Purpose of Trust |
2 | |||
ARTICLE III |
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Shares |
2 | |||
Section 1. Division of Beneficial Interest. |
2 | |||
Section 2. Ownership of Shares. |
2 | |||
Section 3. Investments in the Trust. |
3 | |||
Section 4. Status of Shares and Limitations of Personal Liability. |
3 | |||
Section 5. Power of Board of Trustees to Change Provisions Relating to Shares |
3 | |||
Section 6. Establishment and Designation of Shares. |
3 | |||
ARTICLE IV |
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The Board of Trustees |
5 | |||
Section 1. Number, Election and Tenure. |
5 | |||
Section 2. Effect of Death, Resignation, etc. of a Trustee. |
5 | |||
Section 3. Powers. |
6 | |||
Section 4. Payment of Expenses by the Trust. |
8 | |||
Section 5. Payment of Expense by Shareholders. |
8 | |||
Section 6. Ownership of Assets of the Trust. |
8 | |||
Section 7. Service Contracts. |
8 | |||
ARTICLE V |
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Shareholders’ Voting Powers and Meetings |
9 | |||
Section 1. Voting Powers. |
9 | |||
Section 2. Voting Power and Meetings. |
9 | |||
Section 3. Quorum and Required Vote. |
10 | |||
Section 4. Action by Written Consent. |
10 | |||
Section 5. Record Dates. |
10 | |||
Section 6. Additional Provisions. |
10 | |||
ARTICLE VI |
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Net Asset Value, Distributions, and Redemptions |
10 | |||
Section 1. Determination of Net Asset Value, Net Income, and Distributions. |
10 | |||
Section 2. Redemptions and Repurchases. |
11 | |||
Section 3. Redemptions at the Option of the Trust. |
11 | |||
ARTICLE VII |
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Compensation and Limitation of Liability of Trustees |
11 | |||
Section 1. Compensation. |
11 | |||
Section 2. Indemnification and Limitation of Liability. |
11 | |||
Section 3. Trustee’s Good Faith Action, Expert Advice, No Bond or Surety. |
12 | |||
Section 4. Insurance. |
12 | |||
ARTICLE VIII |
Miscellaneous |
12 | |||
Section 1. Liability of Third Persons Dealing with Trustees. |
12 | |||
Section 2. Termination of Trust or Series. |
12 | |||
Section 3. Merger and Consolidation. |
12 | |||
Section 4. Amendments. |
13 | |||
Section 5. Filing of Copies, References, Headings. |
13 | |||
Section 6. Applicable Law. |
13 | |||
Section 7. Provisions in Conflict with Law or Regulations. |
13 | |||
Section 8. Business Trust Only. |
14 |
WHEREAS, THIS AGREEMENT AND DECLARATION OF TRUST is made and entered into as of March 8, 2010
by the Trustees named hereunder for the purpose of forming a Delaware business trust in accordance
with the provisions hereinafter set forth,
NOW, THEREFORE, the Trustees hereby direct that a Certificate of Trust be filed with Office of
the Secretary of State of the State of Delaware and do hereby declare that the Trustees will hold
IN TRUST all cash, securities and other assets which the Trust now possesses or may hereafter
acquire from time to time in any manner and manage and dispose of the same upon the following terms
and conditions for the pro rata benefit of the holders of Shares in this Trust.
ARTICLE I
Name and Definitions
Name and Definitions
Section 1. Name. This trust shall be known as HC Capital Trust 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. Definitions. Whenever used herein, unless otherwise required by the context or
specifically provided:
(a) The “Trust” refers to the Delaware business trust established by this Declaration of
Trust, as amended from time to time;
(b) The “Trust Property” means any and all property, real or personal, tangible or intangible,
which is owned or held by or for the account of the Trust, including without limitation the rights
referenced in Article VIII, Section 9 hereof;
(c) “Trustee” refers to each person who has signed this Agreement and Declaration of Trust, so
long a each such person continues in office in accordance with the terms hereof, and any other
person who may from time to time be duly elected or appointed to serve on the Board of Trustees in
accordance with the provisions hereof, and reference herein to a Trustee or the Trustees shall
refer to such person or persons in their capacity as trustees hereunder;
(d) “Shares” means the shares of beneficial interest into which the beneficial interest in the
Trust shall be divided from time to time and includes fractions of Shares as well as whole Shares;
(e) “Shareholder” means a record owner of outstanding Shares;
(f) “Person” means and includes individuals, corporations, partnerships, trusts, associations,
joint ventures, estates and other entities, whether or not legal entities, and governments and
agencies and political subdivisions thereof, whether domestic or foreign;
(g) The “1940 Act” refers to the Investment Company Act of 1940 and the Rules and Regulations
thereunder, all as amended from time to time;
(h) The terms “Commission” and “Principal Underwriter” shall have the meanings given them in
the 1940 Act;
(i) “Declaration of Trust” shall mean this Agreement and Declaration of Trust, as amended or
restated from time to time;
(j) “By-Laws” shall mean the By-Laws of the Trust as amended from time to time and
incorporated herein by reference;
(k) The term “Interested Person” has the meaning given it in Section 2(a)(19) of the 1940 Act;
(l) “Investment Manager” or “Manager” means a party furnishing services to the Trust pursuant
to any contract described in Article IV, Section 7(a) hereof;
(m) “Series” refers to each Series of Shares established and designated under or in accordance
with the provisions of Article III.
ARTICLE II
Purpose of Trust
Purpose of Trust
The purpose of the Trust is to conduct, operate and carry on the business of a management
investment company registered under the 1940 Act through one or more Series investing primarily in
securities.
ARTICLE III
Shares
Shares
Section 1. Division of Beneficial Interest. The beneficial interests in the Trust shall at all
times be divided into an unlimited number of Shares, with a par value of $ .001 per Share and
Shares shall have the rights and preferences provided for herein. The Trustees may authorize the
division of Shares into separate Series. The different Series shall be established and designated,
and the variations in the relative rights and preferences as between the different Series shall be
fixed and determined, by the Trustees. If the context so requires, all references to Series shall
be construed to refer to the Trust.
Subject to the provisions of Section 6 of this Article III, each Share shall have voting
rights as provided in Article V hereof, and holders of the Shares of any Series shall be entitled
to receive dividends, when, if and as declared with respect thereto in the manner provided in
Article VI, Section 1 hereof. No Shares shall have any priority or preference over any other Share
of the same Series with respect to dividends or distributions upon termination of the Trust or of
such Series made pursuant to Article VIII, Section 4 hereof. All dividends and distributions shall
be made ratably among all Shareholders of a particular Series from the assets held with respect to
such Series according to the number of Shares of such Series held of record by such Shareholder on
the record date for any dividend or distribution or on the date of termination, as the case may be.
Shareholders shall have no preemptive or other right to subscribe to any 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
without thereby materially changing the proportionate beneficial interest of the Shares of that
Series in the assets held with respect to that Series or materially affecting the rights of Shares
of any other Series.
Section 2. Ownership of Shares. The ownership of Shares shall be recorded on the books of the
Trust or a transfer or similar agent for the Trust, which books shall be maintained separately for
the Shares of each Series. No certificates certifying the ownership of Shares shall be issued
except as the Board of Trustees may otherwise determine from time to time. The Trustees may make
such rules as they consider appropriate for the transfer of Shares of each Series 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 and as to the
number of Shares of each Series held from time to time by each.
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 considerations as the Trustees from time to
time may authorize. The Board of Trustees has the right to suspend sales of Shares of any series or
to decline to sell Shares to any investor, in its sole discretion.
Section 4. Status of Shares and Limitations of Personal Liability. Shares shall be deemed to
be personal property giving only the rights provided in this instrument. 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 terminate the Trust, nor entitle the representative of any deceased
Shareholder to an accounting or to take any action in court or elsewhere against the Trust or the
Trustees, but entitles such representative only to the rights of said deceased Shareholder under
this 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 Shareholders 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.
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 the Declaration of Trust as provided elsewhere herein, the Board of Trustees
shall have the power to amend this Declaration of Trust, at any time and from time to time, in such
manner as the Board of Trustees may determine in their sole discretion, without the need for
Shareholder action, so as to add to, delete, replace or otherwise modify any provisions relating to
the Shares contained in this Declaration of Trust including, without limitation, the power to
establish separate classes of shares within any Series and determine the relative rights and
preferences of any such class, provided that the creation of separate classes within any Series
comports with applicable requirements of the 1940 Act and 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 to increase or decrease the par value of the Shares of any Series. 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.
Section 6. Establishment and Designation of Shares. The establishment and designation of any
Series of Shares shall be effective upon the resolution by a majority of the then Trustees,
adopting a resolution which sets forth such establishment and designation and the relative rights
and preferences of such Series. Each such resolution shall be incorporated herein by reference
upon adoption.
Shares of each Series 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, 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 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 Trustees, in their sole discretion, deem 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 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 general liabilities of the Trust which are not readily identifiable as being held with
respect to any particular Series shall be allocated and charged by the Trustees to and among any
one or more of the Series in such manner and on such basis as the Trustees in their sole discretion
deem 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 Trustees shall be conclusive and binding
upon the holders of all Series for all purposes. All Persons who have extended credit which has
been allocated to a particular Series, or who have a claim or contract which 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 claimant relationship.
(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 termination of the Trust or
of any Series with respect to, nor any redemption or repurchase of, the Shares of any Series 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
except to the extent that such Shareholder has such a right or claim hereunder as a Shareholder of
such other Series. The 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 separately by
Series, that is, the Shareholders of each Series shall have the right to approve or disapprove
matters affecting the Trust and each respective Series as if the Series were separate companies.
There are, however, two exceptions to voting by separate Series. First, if the 1940 Act requires
all Shares of the Trust to be voted in the aggregate without differentiation between the separate
Series, then all the Trust’s Shares shall be entitled to vote on a one-vote-per-Share basis.
Second, if any matter affects only the interests of some but not all Series then only the
Shareholders of such affected Series shall be entitled to vote on the matter.
(e) Equality. All the Shares of each particular Series shall represent an equal proportionate
interest in the assets held with respect to that Series, and each Share of any particular Series
shall be equal to each other Share of that Series.
(f) Fractions. Any fractional Share of a Series shall carry proportionately 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 termination of the Trust.
(g) Exchange Privilege. The 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 of Shares in accordance with such requirements and procedures as may be established by the
Trustees.
(h) Combination of Series. The 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.
(i) Elimination of Series. At any time that there are no Shares outstanding of any particular
Series previously established and designated, the Trustees may by resolution abolish that Series
and rescind the establishment and designation thereof.
Section 7. Indemnification of Shareholders. If any Shareholder or former Shareholder shall be
exposed to liability by reason of a claim or demand relating to his or her being or having been a
Shareholder, and not because of his or her acts or omissions, the Shareholder or former Shareholder
(or 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 against all loss and expense arising
from such claim or demand.
ARTICLE IV
The Board of Trustees
The Board of Trustees
Section 1. Number, Election and Tenure. The number of Trustees constituting the Board of
Trustees shall be fixed from time to time by a written instrument signed, or by resolution approved
at a duly constituted meeting, by a majority of the Board of Trustees, provided, however, that the
number of Trustees shall in no event be less than one (1) nor more than fifteen (15). 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 Trustees with or without cause. Each Trustee shall
serve until the next meeting of Shareholders called for the purpose of electing Trustees and until
the election and qualification of his or her successor, unless he or she sooner resigns, is
declared bankrupt or incompetent by a court of appropriate jurisdiction, is removed or dies. Any
Trustee may resign at any time by written instrument signed by him and delivered to any officer of
the Trust or to a meeting of the Trustees. Such resignation shall be effective upon receipt unless
specified to be effective at some other time. Except to the extent expressly provided in a written
agreement with the Trust, no Trustee resigning and no Trustee removed shall have any right to any
compensation for any period following his or her resignation or removal, or any right to damages on
account of such removal. The Shareholders may elect Trustees at any meeting of Shareholders called
by the Trustees for that purpose. Any Trustee may be removed at any meeting of Shareholders by a
vote of two-thirds of the outstanding Shares of the Trust. A meeting of Shareholders for the
purpose of electing or removing one or more Trustees may be called (i) by the Trustees upon their
own vote, or (ii) upon the demand of Shareholders owning 10% or more of the Shares of the Trust in
the aggregate.
Section 2. Effect of Death, Resignation, etc. of a Trustee. The death, declination,
resignation, retirement, removal, or incapacity of one or more Trustees, or all of them, shall not
operate to annul the Trust or to revoke any existing agency created pursuant to the terms of this
Declaration of Trust. Whenever a vacancy in the Board of Trustees shall occur, until such vacancy
is filled as provided in Article IV, Section 1, the Trustees in office, regardless of their number,
shall have all the powers granted to the Trustees and shall discharge all the duties imposed upon
the Trustees by this Declaration of Trust. As conclusive evidence of such vacancy, a written
instrument certifying the existence of such vacancy may be executed by an officer of the Trust or
by a majority of the Board of Trustees. In the event of the death, declination, resignation,
retirement, removal, or incapacity of all the then Trustees within a short period of time and
without the opportunity for at least one Trustee being able to appoint additional
Trustees to fill vacancies, the Trust’s Investment Manager(s) are 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 shall have all powers necessary or
convenient to carry out that responsibility including the power to engage in securities
transactions of all kinds on behalf of the Trust. Without limiting the foregoing, the Trustees may:
adopt By-Laws not inconsistent with this Declaration of Trust providing for the regulation and
management of the affairs of the Trust and may amend and repeal them to the extent that such
By-Laws do not reserve that right to the Shareholders; fill vacancies in or remove from their
number, and may elect and remove such officers and appoint and terminate such agents as they
consider appropriate; to contract for management, administrative, advisory, and other services for
the Trust or for any Series, in accordance with Section 7 of the Article IV; establish, from time
to time, an executive committee and/or such other committee or committees of the Board of Trustees
consisting of two or more Trustees (unless otherwise expressly provided by the By-Laws), which
committee may exercise such powers and authority as may be provided in the By-Laws or as otherwise
determined by the Board of Trustees; employ one or more custodians of the assets of the Trust and
authorize such custodians to employ subcustodians and to deposit all or any part of such assets in
a system or systems for the central handling of securities or with a Federal Reserve Bank, retain a
transfer agent or a shareholder servicing agent, or both; provide for the issuance and distribution
of Shares by the Trust directly or through one or more Principal Underwriters or otherwise; redeem,
repurchase and transfer Shares pursuant to applicable law; set record dates for the determination
of Shareholders with respect to various matters; declare and pay dividends and distributions to
Shareholders of each Series from the assets of such Series; and in general delegate such authority
as they consider desirable to any officer of the Trust, to any committee of the Trustees and to any
agent or employee of the Trust or to any such custodian, transfer or shareholder servicing agent,
or Principal Underwriter. Any determination as to what is in the interests of the Trust made by the
Trustees in good faith shall be conclusive. In construing the provisions of this Declaration of
Trust, the presumption shall be in favor of a grant of power to the Trustees. Any action by the
Board of Trustees shall be deemed effective if approved or taken by a majority of the Trustees then
in office unless this Declaration of Trust, the By-Laws, the 1940 Act or other applicable law
expressly provides otherwise, and provided that any such action may be taken by any committee of
the Board of Trustees duly constituted under this Declaration of Trust and under the By-Laws and
acting in accordance with such By-Laws, and notwithstanding that such committee may consist of
fewer than a majority of the Trustees then in office. Without limiting the foregoing, the Trust
shall have power and authority:
(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, transfer, exchange,
distribute, write options on, lend or otherwise deal in securities and contracts for the future
acquisition or delivery of fixed income securities or other instruments (including, for this
purpose, contracts relating to currencies in which securities that the Trust may invest in are
denominated) of every nature and kind, including, without limitation, all types of bonds,
debentures, 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 in “when issued” contracts for any such securities, to change the
investments of the assets of the Trust; and to exercise any and all rights, powers, and privileges
of ownership or interest in respect of any and all such investments of every kind and description,
including, without limitation, the right to consent and
otherwise act with respect thereto, with power to designate one or more Persons, to exercise any of
said rights, powers, and privileges in respect of any of said instruments;
(b) 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;
(c) 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;
(d) To exercise powers and right of subscription or otherwise which in any manner arise out of
ownership of securities;
(e) To hold any security or property in a form not indicating any trust, 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;
(f) 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;
(g) 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;
(h) 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;
(i) To enter into joint ventures, general or limited partnerships and any other combinations
or associations;
(j) To borrow funds or other property in the name of the Trust exclusively for Trust purposes;
(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, Managers, 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, Manager, principal underwriter, or independent contractor,
including any action taken or omitted that may be determined to constitute negligence, whether or
not the Trust would have the power to indemnify such Person against liability; and
(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.
The Trust shall not be limited to investing in obligations maturing before the possible
termination 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. The Trust
shall not be required to obtain any court order to deal with any assets of the Trust or take any
other action hereunder.
Section 4. Payment of Expenses by the Trust. The Trustees are authorized to pay or cause to be
paid out of the principal or income of the Trust, or partly out of the principal and partly out of
income, as they deem fair, all expenses, fees, charges, taxes and liabilities incurred or arising
in connection with the Trust, or in connection with the management thereof, including, but not
limited to, the Trustees’ compensation and such expenses and charges for the services of the
Trust’s officers, employees, investment adviser or Manager, principal underwriter, auditors,
counsel, custodian, transfer agent, Shareholder servicing agent, and such other agents,
consultants, or independent contractors and such other expenses and charges as the Trustees may
deem necessary or proper to incur.
Section 5. Payment of Expense by Shareholders. The Trustees shall have the power, as
frequently as they may determine, to cause each Shareholder, or each Shareholder of any particular
Series, to pay directly, in advance or arrears, for charges of the Trust’s custodian or transfer
agent, Shareholder servicing or similar agent, an amount fixed from time to time by the Trustees,
by setting off such charges due from such Shareholder from declared but unpaid dividends 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 Assets of the Trust. Title to all of the assets of the Trust shall at
all times be considered as vested in the Trust, except that the Trustees shall have power to cause
legal title to any Trust Property to be held by or in the name of one or more of the Trustees, or
in the name of the Trust, or in the name of any other Person as nominee, on such terms as the
Trustees may determine. The right, title and interest of the Trustees in the Trust Property shall
vest automatically in each Person who may hereafter become a Trustee. Upon the resignation, removal
or death of a Trustee he or she shall automatically cease to have any right, title or interest in
any of the Trust Property, and the right, title and interest of such Trustee in the Trust Property
shall vest automatically in the remaining Trustees. Such vesting and cessation of title shall be
effective whether or not conveyancing documents have been executed and delivered.
Section 7. Service Contracts.
(a) The Trustees may, at any time and from time to time, contract for exclusive or
nonexclusive advisory, management, consulting and/or administrative services for the Trust or for
any Series with any corporation, trust, association or other organization; and any such contract
may contain such other terms as the Trustees may determine, including without limitation, authority
for the Investment Manager(s) or administrator to determine from time to time without prior
consultation with the Trustees what investments shall be purchased, held, sold or exchanged and
what portion, if any, of the assets of the Trust shall be held uninvested and to make changes in
the Trust’s investments, or such other activities as may specifically be delegated to such party.
(b) The Trustees may also, at any time and from time to time, contract with any corporation,
trust, association or other organization, appointing it exclusive or nonexclusive distributor or
Principal Underwriter for the Shares of one or more of the Series or other securities to be issued
by the Trust.
(c) The Trustees are also empowered, at any time and from time to time, to contract with any
corporations, trusts, associations or other organizations, appointing it or them the custodian,
transfer agent and/or shareholder servicing agent for the Trust or one or more of its Series.
(d) The Trustees are further empowered, at any time and from time to time, to contract with
any entity to provide such other services to the Trust or one or more of the Series, as the
Trustees determine to be in the best interests of the Trust and the applicable Series.
(e) In the event that
(i) any Shareholder, Trustee, or officer of the Trust is a shareholder,
director, officer, partner, trustee, employee, affiliate or agent of any Person (or
of any affiliate or parent of such Person) with which a service contract of any
kind may have been or may hereafter be made, or has any other interest in any
Service Provider (or in any affiliate or agent of such Service Provider);
(ii) any Service Provider (or any affiliate or agent of any Service Provider)
is a Shareholder of or has any other interest in the Trust; or
(iii) any Service Provider (or any affiliate or agent of any Service Provider)
has entered into, or may at any time enter into a service contract with Persons
other that the Trust;
such fact shall not affect the validity of any contract between a Service Provider and the Trust,
or disqualify any Shareholder, Trustee or officer of the Trust from voting upon or executing any
such contract, nor shall any liability or accountability to the Trust or its Shareholders arise
solely as a result of any interest identified in (i), (ii) or (iii) above on the part of any such
Shareholder, Trustee or officer to the Trust, provided that all applicable requirements of the 1940
are satisfied.
ARTICLE V
Shareholders’ Voting Powers and Meetings
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 or removal of Trustees as provided
in Article IV, Section 1, and (ii) with respect to such additional matters relating to the Trust as
may be required by this Declaration of Trust, the By-Laws or any registration of the Trust with the
Commission (or any successor agency) or any state, or as the Trustees may consider necessary or
desirable. Each whole Share shall be entitled to one vote as to any matter on which it is entitled
to vote and each fractional Share shall be entitled to a proportionate fractional vote. There shall
be no cumulative voting in the election of Trustees. Shares may be voted in person or by proxy. A
proxy with respect to Shares held in the name of two or more persons shall be valid if executed by
any one of them unless at or prior to exercise of the proxy the Trust receives a specific written
notice to the contrary from any one of them. A proxy purporting to be executed by or on behalf of a
Shareholder shall be deemed valid unless challenged at or prior to its exercise and the burden of
proving invalidity shall rest on the challenger.
Section 2. Voting Power and Meetings. Meetings of the Shareholders may be called by the
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, by this Declaration of Trust or by the By-Laws.
Meetings of the Shareholders may also be called by the Trustees from time to time for the purpose
of taking action upon any other matter deemed by the Trustees to be necessary or desirable. A
meeting of Shareholders may be held at any place designated by the Trustees. Written notice of any
meeting of Shareholders shall be given or caused to be given by the Trustees by mailing such notice
at least seven (7) days before such meeting, postage prepaid, stating the time and place of the
meeting, to each Shareholder at the Shareholder’s address as it appears on the records of the
Trust. Whenever notice of a meeting is required to be given to a
Shareholder under this Declaration of Trust or the By-Laws, a written waiver thereof, executed
before or after the meeting by such Shareholder or his or her attorney thereunto authorized and
filed with the records of the meeting, shall be deemed equivalent to such notice.
Section 3. Quorum and Required Vote. Except when a larger quorum is required by applicable
law, by the By-Laws or by this Declaration of Trust, forty percent (40%) of the Shares “entitled to
vote” (as that term is defined in the By-Laws) shall constitute a quorum at a Shareholders’
meeting. When one or more Series is to vote on a particular matter as a single Series separate from
Shares of any other Series, forty percent (40%) of the Shares of each such Series entitled to vote
shall constitute a quorum of the holders of such Series. Any meeting of Shareholders may be
adjourned from time to time by a majority of the “votes properly cast” (as that term is defined in
the By-Laws) upon the question of adjourning a meeting to another date and time, whether or not a
quorum is present, and the meeting may be held as adjourned within a reasonable time after the date
set for the original meeting without further notice. Subject to the provisions of Article III,
Section 6(d), when a quorum is present at any meeting, a majority of the Shares “voted” (as that
term is defined in the By-Laws) shall decide any questions properly before the meeting and a
plurality shall elect a Trustee, except when a larger vote is required by any provision of this
Declaration of Trust, the By-Laws, the 1940 Act or other applicable law.
Section 4. Action by Written Consent. Any action taken by Shareholders may be taken without a
meeting if Shareholders holding a majority of the Shares entitled to vote on the matter (or such
larger proportion thereof as shall be required by any express provision of this Declaration of
Trust or by the By-Laws) and holding a majority (or such larger proportion as aforesaid) of the
Shares of any Series entitled to vote separately on the matter consent to the action in writing and
such written consents are filed with the records of the meetings of Shareholders. Such consent
shall be treated for all purposes as a vote taken at a meeting of Shareholders.
Section 5. Record Dates. For the purpose of determining the Shareholders of any Series who are
entitled to vote or act at any meeting or any adjournment thereof, the Trustees may from time to
time fix a time, which shall be not more than ninety (90) days before the date of any meeting of
Shareholders, as the record date for determining the Shareholders of such Series having the right
to notice of and to vote at such meeting and any adjournment thereof, and in such case only
Shareholders of record on such record date shall have such right, notwithstanding any transfer of
shares on the books of the Trust after the record date. For the purpose of determining the
Shareholders of any Series who are entitled to receive payment of any dividend or of any other
distribution, the Trustees may from time to time fix a date, which shall be before the date for the
payment of such dividend or such other payment, as the record date for determining the Shareholders
of such Series having the right to receive such dividend or distribution. Without fixing a record
date the Trustees may for voting and/or distribution purposes close the register or transfer books
for one or more Series for all or any part of the period between a record date and a meeting of
Shareholders or the payment of a distribution. Nothing in this Section shall be construed as
precluding the Trustees from setting different record dates for different Series.
Section 6. Additional Provisions. The By-Laws may include further provisions for Shareholders’
votes and meetings and related matters.
ARTICLE VI
Net Asset Value, Distributions, and Redemptions
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 Trustees, in their absolute discretion, may prescribe and shall set
forth in the By-laws or in a duly adopted vote of the Trustees such bases and time for determining
the net asset value of the Shares of any Series or net income
attributable to the Shares of any Series, or the declaration and payment of dividends and distributions on the Shares of any Series, as they may deem necessary or desirable.
Section 2. Redemptions and Repurchases. The Trust shall honor requests 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 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 made in proper form. The obligation set forth in this Section 2 is
subject to the provision that in the event that at any time the New York Stock Exchange (the
“Exchange”) is closed for other than weekends or holidays, or if permitted by the Rules of the
Commission during periods when trading on the Exchange is restricted or during any emergency which
makes it impracticable for the Trust to dispose of the investments of the applicable Series or to
determine fairly the value of the net assets held with respect to such Series or during any other
period permitted by order of the Commission for the protection of investors, such obligations may
be suspended or postponed by the Trustees.
The redemption price may in any case or cases be paid wholly or partly in kind if the Trustees
determine that such payment is advisable in the interest of the remaining Shareholders of the
Series for which the shares are being redeemed. Subject to the foregoing, the fair value, selection
and quantity of securities or other property so paid or delivered as all or part of the redemption
price may be determined by or under authority of the Trustees. In no case shall the Trust be liable
for any delay on the part of any corporation or other Person in transferring securities selected
for delivery as all or part of any payment in kind.
Section 3. Redemptions at the Option of the Trust. The Trust shall have the right at its
option and at any time to redeem Shares of any Shareholder at the net asset value thereof as
described in Section 1 of this Article VI: (i) if at such time such Shareholder owns Shares of any
Series having an aggregate net asset value of less than an amount determined from time to time by
the Trustees prior to the acquisition of said Shares; or (ii) to the extent that such Shareholder
owns Shares of a particular Series equal to or in excess of a percentage of the outstanding Shares
of that Series determined from time to time by the Trustees; (iii) to the extent that such
Shareholder owns Shares equal to or in excess of a percentage, determined from time to time by the
Trustees, of the outstanding Shares of the Trust or of any Series;
or, (iv) in accordance with any agreement by and among all Shareholders of record of the Trust,
provided such agreement is consistent with the 1940 Act and other applicable law.
ARTICLE VII
Compensation and Limitation of Liability of Trustees
Section 1. Compensation. The Trustees as such shall be entitled to reasonable compensation
from the Trust, and they may fix the amount of such compensation. 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. The Trustees shall not be responsible
or liable in any event for any neglect or wrong-doing of any officer, agent, employee, Manager or
Principal Underwriter of the Trust, nor shall any Trustee be responsible for the act or omission of
any other Trustee, and the Trust out of its assets shall indemnify and hold harmless each and every
Trustee from and against any and all claims and demands whatsoever arising out of or related to
each Trustee’s performance of his or her duties as a Trustee of the Trust; provided that nothing
herein contained shall indemnify, hold harmless or protect any Trustee from or against any
liability to the Trust or any Shareholder to which he or she would otherwise be subject by reason
of wilful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in
the conduct of his or her office.
Every note, bond, contract, instrument, certificate or undertaking and every other act or
thing whatsoever issued, executed or done by or on behalf of the Trust or the Trustees or any of
them in connection with the Trust shall be conclusively deemed to have been issued, executed or
done only in or with respect to their or his or her capacity as Trustees or Trustee, and such
Trustees or Trustee shall not be personally liable thereon.
Section 3. Trustee’s Good Faith Action, Expert Advice, No Bond or Surety. The exercise by the
Trustees of their powers and discretion hereunder shall be binding upon everyone interested. A
Trustee shall be liable to the Trust and to any Shareholder solely for his or her own wilful
misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the
conduct of the office of Trustee, and shall not be liable for errors of judgment or mistakes of
fact or law. The Trustees may take advice of counsel or other experts with respect to the meaning
and operation of this Declaration of Trust, and shall be under no liability for any act or omission
in accordance with such advice nor for failing to follow such advice. The Trustees shall not be
required to give any bond as such, nor any surety if a bond is required.
Section 4. Insurance. The Trustees shall be entitled and empowered to the fullest extent
permitted by law to purchase with Trust assets insurance for liability and for all expenses
reasonably incurred or paid or expected to be paid by a Trustee or officer in connection with any
claim, action, suit or proceeding in which he or she becomes involved by virtue of his or her
capacity or former capacity with the Trust.
ARTICLE VIII
Miscellaneous
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 transaction made or to
be made by the Trustees or to see to the application of any payments made or property transferred
to the Trust or upon its order.
Section 2. Termination of Trust or Series. Unless terminated as provided herein, the Trust
shall continue without limitation of time. The Trust may be terminated at any time by vote of a
majority of the Shares of each Series entitled to vote, voting separately by Series, or by the
Trustees by written notice to the Shareholders. Any Series may be terminated at any time by vote of
a majority of the Shares of that Series or by the Trustees by written notice to the Shareholders of
that Series.
Upon termination of the Trust (or any Series, as the case may be), after paying or otherwise
providing for all charges, taxes, expenses and liabilities held, severally, with respect to each
Series (or the applicable Series, as the case may be), whether due or accrued or anticipated as may
be determined by the Trustees, the Trust shall, in accordance with such procedures as the Trustees
consider appropriate, reduce the remaining assets held, severally, with respect to each Series (or
the applicable Series, as the case may be), to distributable form in cash or shares or other
securities, or any combination thereof, and distribute the proceeds held with respect to each
Series (or the applicable Series, as the case may be), to the Shareholders of that Series, as a
Series, ratably according to the number of Shares of that Series held by the several Shareholders
on the date of termination.
Section 3. Merger and Consolidation. The Trustees may cause (i) the Trust or one or more of
its Series to the extent consistent with applicable law to be merged into or consolidated with
another Trust or company, (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 Article VIII, or (iii) the Shares to be exchanged under or pursuant to any state or federal
statute to the extent permitted by law. Such merger or consolidation, Share conversion or Share
exchange must be authorized by vote of a majority of the outstanding Shares of the Trust, as a
whole, or any affected Series, as may be applicable; provided that in all respects not governed by
statute or applicable law, the Trustees shall have power to
prescribe the procedure necessary or appropriate to accomplish a 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. Amendments. 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 Trustees or by a majority of the then
Trustees, by resolution approved at a meeting of the Trust’s Board of Trustees. The approval of the
Trust’s Shareholders will not be required with respect to any such restatement or amendment unless
(i) such approval is mandated by applicable state law or the 1940 Act; or (ii) such approval is
found by a majority of the Trustees, in their sole discretion and by resolution, to be appropriate
or desirable. Any such restatement and/or amendment hereto shall be effective immediately upon
execution and approval. The Certificate of Trust of the Trust may be restated and/or amended by a
similar procedure, and any such restatement and/or amendment shall be effective immediately upon
filing with the Office of the Secretary of State of the State of Delaware or upon such future date
as may be stated therein.
Section 5. Filing of Copies, References, Headings. The original or a copy of this instrument
and of each restatement and/or amendment hereto shall be kept at the office of the Trust where it
may be inspected by any Shareholder. Anyone dealing with the Trust may rely on a certificate by an
officer of the Trust as to whether or not any such restatements and/or amendments have been made
and as to any matters in connection with the Trust hereunder; and, with the same effect as if it
were the original, may rely on a copy certified by an officer of the Trust to be a copy of this
instrument or of any such restatements and/or amendments. In this instrument and in any such
restatements and/or amendment, references to this instrument, and all expressions like “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 6. Applicable Law. This Agreement and Declaration of Trust is created under and is to
be governed by construed and administered according to the laws of the State of Delaware and the
Delaware Business Trust Act, as amended from time to time (the “Act”). The Trust shall be a
Delaware business trust pursuant to such Act, and without limiting the provisions hereof, the Trust
may exercise all powers which are ordinarily exercised by such a business trust.
Section 7. Provisions in Conflict with Law or Regulations.
(a) The provisions of the Declaration of Trust are severable, and if the Trustees shall
determine, with the advice of counsel, that any of such provisions is in conflict with the 1940
Act, the regulated investment company provisions of the Internal Revenue Code or with other
applicable laws and regulations, the conflicting provision shall be deemed never to have
constituted a part of the Declaration of Trust; provided, however, that such determination shall
not affect any of the remaining provisions of the Declaration of Trust or render invalid or
improper any action taken or omitted prior to such determination.
(b) If any provision of the 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 the Declaration of Trust in any jurisdiction.
Section 8. Business Trust Only. It is the intention of the Trustees to create a business trust
pursuant to the Delaware Business Trust Act, as amended from time to time (the “Act”), and thereby
to create only the relationship of trustee and beneficial owners within the meaning of such Act
between the Trustees and each Shareholder. It is not the intention of the Trustees to create a
general partnership, limited partnership, joint stock association, corporation, bailment, or any
form of legal relationship other than a business trust pursuant to such Act. 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.
