Post-Effective Amendment of a Form N-1 or N-1A Registration — Rule 485(b)
Filing Table of Contents
Document/Exhibit Description Pages Size
1: 485BPOS Post-Effective Amendment #3 40 170K
2: EX-1 Underwriting Agreement 34 151K
3: EX-2 Plan of Acquisition, Reorganization, Arrangement, 7 31K
Liquidation or Succession
4: EX-5 Opinion of Counsel re: Legality 5 17K
5: EX-6 Opinion of Counsel re: Discount on Capital Shares 8 25K
6: EX-9 Voting Trust Agreement 3 11K
7: EX-11 Consent of Independent Public Accountants 1 5K
8: EX-16 Statement of Additional Information 1 6K
Exhibit 1
SPECTRA FUND
----------------------------
AMENDED AND RESTATED
AGREEMENT AND DECLARATION OF TRUST
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Dated: February 18, 1997
Principal Place of Business:
c/o Fred Alger Management, Inc.
75 Maiden Lane
New York, New York 10038
Massachusetts Office and Name and Name and Address of Agent for
Address of Initial Trustee: Service of Process:
Thomas E. Weesner, Esq. CT Corporation System
Sullivan & Worcester 2 Oliver Street
One Post Office Square Boston, Massachusetts 02109
Boston. Massachusetts 02109
AMENDED AND RESTATED
DECLARATION OF TRUST
SPECTRA FUND
TABLE OF CONTENTS
PROVISION PAGE
RECITALS .................................................................... 1
ARTICLE 1 THE TRUST .................................................... 1
1.1 Name ......................................................... 1
1.2 Location ..................................................... 2
1.3 Nature of Trust .............................................. 2
1.4 Definitions .................................................. 2
1.5 Real Property to be Converted into Personal Property ......... 5
ARTICLE 2 PURPOSE OF THE TRUST ......................................... 5
ARTICLE 3 POWERS OF THE TRUSTEES ....................................... 5
3.1 Powers in General ............................................ 5
(a) Investments ......................................... 6
(b) Disposition of Assets ............................... 6
(c) Ownership Powers..................................... 6
(d) Form of Holding ..................................... 7
(e) Reorganization, etc. ................................ 7
(f) Voting Trusts, etc. ................................. 7
(g) Contracts, etc. ..................................... 7
(h) Guarantees, etc. .................................... 7
(i) Partnerships, etc. .................................. 7
(j) Insurance ........................................... 7
(k) Pensions, etc. ...................................... 8
(1) Power of Collection and Litigation .................. 8
(m) Issuance and Repurchase of Shares ................... 8
(n) Offices ............................................. 8
(o) Expenses ............................................ 8
(p) Agents, etc ......................................... 8
(q) Accounts ............................................ 8
(r) Valuation ........................................... 8
(s) Indemnification ..................................... 8
(t) General ............................................. 9
3.2 Borrowings; Financings, Issuance of Securities ............... 9
3.3 Deposits ..................................................... 9
3.4 Allocations .................................................. 9
3.5 Further Powers; Limitations .................................. 9
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PROVISION PAGE
ARTICLE 4 TRUSTEES AND OFFICERS ........................................ 10
4.1 Number, Designation, Election, Term, etc. .................... 10
(a) [Intentionally omitted]
(b) Number .............................................. 10
(c) Election and Term ................................... 10
(d) Resignation and Retirement .......................... 10
(e) Removal ............................................. 10
(f) Vacancies ........................................... 11
(g) Acceptance of Trusts ................................ 11
(h) Effect of Death, Resignation, etc. .................. 11
(i) Conveyance .......................................... 11
(j) No Accounting ....................................... 11
4.2 Trustees' Meetings; Participation by Telephone, etc. ......... 11
4.3 Committees, Delegation ....................................... 12
4.4 Officers ..................................................... 12
4.5 Compensation of Trustees and Officers ........................ 12
4.6 Ownership of Shares and Securities of the Trust .............. 12
4.7 Right of Trustees and Officers to Own Property and to
Engage in Business; Authority of Trustees
to Permit Others to Do Likewise ......................... 12
4.8 Reliance on Experts .......................................... 13
4.9 Surety Bonds.................................................. 13
4.10 Apparent Authority of Trustees and Officers .................. 13
4.11 Other Relationships Not Prohibited ........................... 13
4.12 Payment of Trust Expenses .................................... 14
4.13 Ownership of the Trust Property .............................. 14
ARTICLE 5 DELEGATION OF MANAGERIAL RESPONSIBILITIES .................... 14
5.1 Appointment; Action by Less than All Trustees ................ 14
5.2 Certain Contracts ............................................ 14
(a) Advisory ............................................ 15
(b) Administration ...................................... 15
(c) Distribution ........................................ 15
(d) Custodian ........................................... 15
(e) Transfer and Dividend Disbursing Agency ............. 16
(f) Shareholder Servicing ............................... 16
(g) Accounting .......................................... 16
ARTICLE 6 PORTFOLIOS AND SHARES ........................................ 16
6.1 Description of Portfolios and Shares ......................... 16
(a) Shares; Portfolios; Series and Classes of Shares .... 16
(b) Establishment, etc. of Additional Portfolios;
Authorization of Shares ...........................17
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PROVISION PAGE
(c) Character of Separate Portfolios and Shares Thereof . 17
(d) Consideration for Shares ............................ 17
6.2 Establishment and Designation of the Spectra Portfolio
and the Shares Thereof; General Provisions
for All Portfolios .................................. 17
(a) Assets Belonging to Portfolios ...................... 18
(b) Liabilities of Portfolios ........................... 18
(c) Dividends ........................................... 18
(d) Liquidation ......................................... 19
(e) Voting .............................................. 19
(f) Redemption by Shareholder ........................... 19
(g) Redemption at the Option of the Trust ............... 20
(h) Net Asset Value ..................................... 20
(i) Transfer ............................................ 20
(j) Equality ............................................ 20
(k) Rights of Fractional Shares ......................... 21
(1) Conversion Rights ................................... 21
6.3 Ownership of Shares .......................................... 21
6.4 Investments in the Trust ..................................... 21
6.5 No Preemptive Rights ......................................... 21
6.6 Status of Shares ............................................. 21
ARTICLE 7 SHAREHOLDERS' VOTING POWERS AND MEETINGS ..................... 22
7.1 Voting Powers ................................................ 22
7.2 Number of Votes and Manner of Voting; Proxies ................ 22
7.3 Meetings ..................................................... 22
7.4 Record Dates ................................................. 23
7.5 Quorum and Required Vote ..................................... 23
7.6 Action by Written Consent .................................... 23
7.7 Inspection of Records ........................................ 23
7.8 Additional Provisions ........................................ 23
ARTICLE 8 LIMITATION OF LIABILITY; INDEMNIFICATION ..................... 24
8.1 Trustees, Shareholders, etc. Not Personally Liable; Notice ... 24
8.2 Trustees' Good Faith Action; Expert Advice; No Bond or Surety. 24
8.3 Indemnification of Shareholders .............................. 24
8.4 Indemnification of Trustees, Officers, etc. .................. 25
8.5 Compromise Payment ........................................... 25
8.6 Indemnification Not Exclusive, etc. .......................... 26
8.7 Liability of Third Persons Dealing with Trustees ............. 26
ARTICLE 9 DURATION; REORGANIZATION; AMENDMENTS ......................... 26
9.1 Duration and Termination of Trust ............................ 26
9.2 Reorganization ............................................... 26
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PROVISION PAGE
9.3 Amendments; etc.. ........................................... 27
9.4 Filing of Copies of Declaration and Amendments .............. 27
ARTICLE 10 MISCELLANEOUS ............................................... 27
10.1 Governing Law ............................................... 27
10.2 Counterparts ................................................ 28
10.3 Reliance by Third Parties ................................... 28
10.4 References; Headings ........................................ 28
10.5 Use of the Name "Spectra" ................................... 28
SIGNATURES ................................................................. 28
ACKNOWLEDGMENT ............................................................. 29
AMENDED AND RESTATED
AGREEMENT AND DECLARATION OF TRUST
OF
SPECTRA FUND
Dated _____________ __, 199__
This AMENDED AND RESTATED AGREEMENT AND DECLARATION OF TRUST, dated the
___ day of ______ 199
WITNESSETH THAT:
WHEREAS, Spectra Fund, a trust with transferable shares under the laws
of Massachusetts (the "TRUST"), was established on July 5, 1995 pursuant to an
Agreement and Declaration of Trust of that date (referred to in these Recitals
as the "DECLARATION"); and
WHEREAS, the Declaration provides that the assets held by the Trustees
be divided into separate portfolios, each with its own separate investment
assets, investment objectives, policies and purposes, and that the beneficial
interest in each such portfolio shall be divided into transferable Shares of
Beneficial Interest, a separate Series of Shares for each portfolio, all in
accordance with the provisions hereinafter set forth; and
WHEREAS, the Declaration provides that the Trust be managed and
operated as a trust with transferable shares under the laws of Massachusetts, of
the type commonly known as and referred to as a Massachusetts business trust, in
accordance with the provisions hereinafter set forth, and
WHEREAS, the Declaration provides that the Declaration and all
amendments thereto may be restated as a single instrument if executed by a
Majority of the Trustees; and
WHEREAS, the Declaration has been amended in certain respects, and the
Trustees of the Trust desire to effect such a restatement,
NOW, THEREFORE, the Trustees hereby declare that they will hold all
money and property of every type and description which they now hold or may
hereafter in any way acquire in their capacity as such Trustees. together with
the income therefrom and the proceeds thereof, IN TRUST NEVERTHELESS, to manage
and dispose of the same for the benefit of the holders from time to time of the
Shares of Beneficial Interest of the several Series issued and to be issued
hereunder and in the manner and subject to the provisions hereof, to wit:
ARTICLE 1
THE TRUST
SECTION 1.1 NAME. The name of the Trust shall be
"SPECTRA FUND"
and so far as may be practicable the Trustees Shall conduct the Trust's
activities, execute all documents and Declaration of Trust, except where the
context otherwise requires) shall refer to the Trustees in their capacity as
trustees, and not individually or personally, and shall not refer to the
officers, agents or employees of the Trust or of such Trustees, or to the
holders of the Shares of Beneficial Interest of the Trust, of any Series or
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Class. If the Trustees determine that the use of such name is not practicable,
legal or convenient at any time or in any jurisdiction, or if the Trust is
required to discontinue the use of such name pursuant to Section 10.5 hereof,
then subject to that Section, the Trustees may use such other designation, or
they may adopt such other name for the Trust as they deem proper, and the Trust
may hold property and conduct its activities under such designation or name.
SECTION 1.2 LOCATION. The Trust shall have an office in Boston,
Massachusetts, unless changed by the Trustees to another location in
Massachusetts or elsewhere, but such office need not be the sole or principal
office of the Trust. The Trust may have such other offices or places of business
as the Trustees may from time to time determine to be necessary or expedient.
SECTION 1.3 NATURE OF TRUST. The Trust shall be a trust with
transferable shares under the laws of The Commonwealth of Massachusetts, of the
type referred to in Section 1 of Chapter 182 of the Massachusetts General Laws
and commonly termed a Massachusetts business trust The Trust is not intended to
be, shall not be deemed to be, and shall not be treated as, a general
partnership, limited partnership, joint venture, corporation or joint stock
company. The Shareholders shall be beneficiaries and their relationship to the
Trustees shall be solely in that capacity in accordance with the rights
conferred upon them hereunder.
SECTION 1.4 DEFINITIONS As used in this Agreement and Declaration of
Trust, the following terms shall have the meanings set forth below unless the
context thereof otherwise requires:
"ACCOUNTING AGENT" shall have the meaning designated in Section 5.2(g)
hereof,
"ADMINISTRATOR" shall have the meaning designated in Section 5.2(b)
hereof.
"AFFILIATED PERSON" shall have the meaning assigned to it in the 1940
Act.
"BYLAWS" shall mean the Bylaws of the Trust, as amended from time to
time.
"CERTIFICATE OF DESIGNATION" shall have the meaning designated in
Section 6.1 hereof.
"CERTIFICATE OF TERMINATION" shall have the meaning designated in
Section 6.1 hereof.
"CLASS" or "CLASSES" shall mean, with respect to any Series, any Shares
of such Series in respect of which the Trustees shall from time to time fix and
determine any special provisions relating to sales charges, any rights of
redemption and the price, terms and manner of redemption, special and relative
rights as to dividends and other distributions and on liquidation, sinking or
purchase fund provisions, conversion rights, and conditions under which the
Shareholders of such Class shall have separate voting rights or no voting
rights.
"COMMISSION" shall have the same meaning as in the 1940 Act.
"CONTRACTING PARTY" shall have the meaning designated in the preamble
to Section 5.2 hereof.
"COVERED PERSON" shall have the meaning designated in Section 8.4
hereof.
"CUSTODIAN" shall have the meaning designated in Section 5.2(d) hereof.
"DECLARATION" and "DECLARATION OF TRUST" shall mean this Agreement and
Declaration of Trust and all amendments or modifications thereof as from time to
time in effect. References in this Agreement and
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Declaration of Trust to 9'hereof', "HEREIN" and "HEREUNDER" shall be deemed to
refer to the Declaration of Trust generally, and shall not be limited to the
particular text, Article or Section in which such words appear.
"DISABLING CONDUCT" shall have the meaning designated in Section 8.4
hereof.
"DISTRIBUTOR" shall have the meaning designated in Section 5.2(c)
hereof.
"DIVIDEND DISBURSING AGENT" shall have the meaning designated in
Section 5.2(e) hereof.
"GENERAL ITEMS" shall have the meaning defined in Section 6.2(a)
hereof.
"INTERNAL REVENUE CODE shall mean the Internal Revenue Code of 1986, as
from time to time amended and in effect, or any substituted statute dealing with
the same general subject matter as the Internal Revenue Code of 1986, as in
effect on June 27, 1995, and in either case the rules and regulations thereunder
as from time to time interpreted and applied by applicable case law thereunder.
"INVESTMENT ADVISER" shall have the meaning stated in Section 5.2(a)
hereof.
"MAJORITY OF THE TRUSTEES" shall mean a majority of the Trustees in
office at the time in question. At any time at which there shall be only one (1)
Trustee in office, such term shall mean such Trustee.
"MAJORITY SHAREHOLDER VOTE," as used with respect to the election of
any Trustee at a meeting of Shareholders, shall mean the vote for the election
of such Trustee of a plurality of all outstanding Shares of the Trust, without
regard to Series or Class, represented in person or by proxy and entitled to
vote thereon, provided that a quorum (as determined in accordance with Section
7.5 hereof) is present, and as used with respect to any other action required or
permitted to be taken by Shareholders, shall mean the affirmative vote for such
action of the holders of that number of all outstanding Shares (or, where a
separate vote of Shares of any particular Series or Class is to be taken, the
affirmative vote of that number of the outstanding Shares of that Series or
Class) of the Trust which constitutes: (i) a majority of all Shares (or of
Shares of the particular Series or Class) represented in person or by proxy and
entitled to vote on such action at the meeting of Shareholders at which such
action is to be taken, provided that a quorum (as determined in accordance with
Section 7.5 hereof) is present; or (ii) if such action is to be taken by written
consent of Shareholders, a majority of all Shares (or of Shares of the
particular Series or Class) issued and outstanding and entitled to vote on such
action; PROVIDED, that (iii) as used with respect to any action requiring the
affirmative vote of "a majority of the outstanding voting securities", as the
quoted phrase is defined in the 1940 Act, of the Trust or of any Series or
Class, "MAJORITY SHAREHOLDER VOTE" means the vote for such action at a meeting
of Shareholders of the smallest majority of all outstanding Shares of the Trust
(or of Shares of the particular Series or Class) entitled to vote on such action
which satisfies such 1940 Act voting requirement.
"1940 ACT" shall mean the provisions of the Investment Company Act of
1940 and the rules and regulations thereunder, both as amended from time to
time, and any order or orders thereunder which may from time to time be
applicable to the Trust.
"PERSON" shall mean and include individuals, as well as corporations,
limited partnerships, general partnerships, joint stock companies, joint
ventures, associations, banks, trust companies, land trusts, business trusts or
other organizations established under the laws of any jurisdiction whether or
not considered to be legal entities, and governments and agencies and political
subdivisions thereof.
"PORTFOLIO" or "PORTFOLIOS" shall mean one or more of the separate
components of the assets of the Trust which are now or hereafter established and
designated under or in accordance with the provisions of Article 6 hereof.
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"PORTFOLIO ASSETS" shall have the meaning defined in Section 6.2(a)
hereof.
"PRINCIPAL UNDERWRITER" shall have the meaning designated in Section
5.2(c) hereof.
"PROSPECTUS," as used with respect to any Portfolio or Series of
Shares, shall mean the prospectus relating to such Portfolio or Series which
constitutes part of the currently effective Registration Statement of the Trust
under the Securities Act of 1933, as such prospectus may be amended or
supplemented from time to time.
"SECURITIES" shall mean any and all bills, notes, bonds, debentures or
other obligations or evidences of indebtedness, certificates of deposit,
bankers' acceptances, commercial paper, repurchase agreements or other money
market instruments; stocks, shares or other equity ownership interests; and
warrants, options or other instruments representing rights to subscribe for,
purchase, receive or otherwise acquire or to sell, transfer, assign or otherwise
dispose of, and scrip, certificates, receipts or other instruments evidencing
any ownership rights or interests in, any of the foregoing and "when issued" and
"delayed delivery" contracts for securities, issued, guaranteed or sponsored by
any governments, political subdivisions or governmental authorities, agencies or
instrumentalities, by any individuals, firms, companies, corporations,
syndicates, associations or trusts, or by any other organizations or entities
whatsoever, irrespective of their forms or the names by which they may be
described, whether or not they be organized and operated for profit, and whether
they be domestic or foreign with respect to The Commonwealth of Massachusetts or
the United States of America.
"SECURITIES OF THE TRUST" shall mean any Securities issued by the
Trust.
"SERIES" shall mean one or more of the series of Shares authorized by
the Trustees, each to represent the beneficial interests in one of the
Portfolios of the Trust.
"SHAREHOLDER" shall mean as of any particular time any Person shown of
record at such time on the books of the Trust as a holder of outstanding Shares
of any Series or Class, and shall include a pledgee into whose name any such
Shares are transferred in pledge.
"SHAREHOLDER SERVICING AGENT" shall have the meaning designated in
Section 5.2(f) hereof.
"SHARES" shall mean the transferable units into which the beneficial
interest in the Trust and each Portfolio of the Trust (as the context may
require) shall be divided from time to time, and includes fractions of Shares as
well as whole Shares. All references herein to "Shares" which are not
accompanied by a reference to any particular Series or Portfolio shall be deemed
to apply to outstanding Shares without regard to Series or Class.
"SINGLE CLASS VOTING" as used with respect to any matter to be acted
upon at a meeting or by written consent of Shareholders, shall mean a style of
voting in which each holder of one or more Shares shall be entitled to one vote
on the matter in question for each Share standing in his name on the records of
the Trust, irrespective of Series or Class, and all outstanding Shares of all
Series or Class vote as a single class.
"STATEMENT OF ADDITIONAL INFORMATION," as used with respect to any
Series or Class of Shares, shall mean the statement of additional information
relating to such Series or Class, which constitutes part of the currently
effective Registration Statement of the Trust under the Securities Act of 1933,
as such statement of additional information may be amended or supplemented from
time to time.
"TRANSFER AGENT" shall have the meaning defined in Section 5.2(e)
hereof.
"TRUST" shall have the meaning stated in the first "Whereas" clause set
forth above.
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"TRUST PROPERTY" shall mean, as of any particular time, any and all
property which shall have been transferred, conveyed or paid to the Trust or the
Trustees, and all interest, dividends, income, earnings, profits and gains
therefrom, and proceeds thereof, including any proceeds derived from the sale,
exchange or liquidation thereof, and any hinds or payments derived from any
reinvestment of such proceeds in whatever form the same may be, and which at
such time is owned or held by, or for the account of, the Trust or the Trustees.
without regard to the Portfolio to which such property is allocated.
"TRUSTEES" shall mean, collectively, all individuals who at the time in
question have been duly elected or appointed as Trustees of the Trust in
accordance with the provisions hereof and who have qualified and are then in
office. At any time at which there shall be only one (1) Trustee in office, such
term shall mean such single Trustee.
SECTION 1.5 REAL PROPERTY TO BE CONVERTED INTO PERSONAL PROPERTY.
Notwithstanding any other provision hereof, any real property at any time
forming part of the Trust Property shall be held in trust for sale and
conversion into personal property at such time or times and in such manner and
upon such terms as the Trustees shall approve, but the Trustees shall have power
until the termination of this Trust to postpone such conversion as long as they
in their uncontrolled discretion shall think fit, and for the purpose of
determining the nature of the interest of the Shareholders therein, all such
real property shall at all times be considered as personal property.
ARTICLE 2
PURPOSE OF THE TRUST
The purpose of the Trust shall be to engage in the business of being an
investment company, and as such of subscribing for, purchasing or otherwise
acquiring, holding for investment or trading in, borrowing, lending and selling
short, selling, assigning, negotiating or exchanging and otherwise disposing of,
and turning to account, realizing upon and generally dealing in and with, in any
manner, (a) Securities of all kinds, (b) precious metals and other minerals,
contracts to purchase and sell, and other interests of every nature and kind in,
such metals or minerals, and (c) rare coins and other numismatic items, and all
as the Trustees in their discretion shall determine to be necessary, desirable
or appropriate, and to exercise and perform any and every act, thing or power
necessary, suitable or desirable for the accomplishment of such purpose, the
attainment of any of the objectives or the furtherance of any of the powers
given hereby which are lawful purposes, objects or powers of a trust with
transferable shares of the type commonly termed a Massachusetts business trust;
and to do every other act or acts or thing or things incidental or appurtenant
to or growing out of or in connection with the aforesaid objectives, purposes or
powers, or any of them, which a trust of the type commonly termed a
Massachusetts business trust is not now or hereafter prohibited from doing,
exercising or performing.
ARTICLE 3
POWERS OF THE TRUSTEES
SECTION 3.1 POWERS IN GENERAL. The Trustees shall have, without other
or further authorization, full, entire, exclusive and absolute power, control
and authority over, and management of, the business of the Trust and over the
Trust Property, to the same extent as if the Trustees were the sole owners of
the business and property of the Trust in their own right, and with such powers
of delegation as may be permitted by this Declaration, subject only to such
limitations as may be expressly imposed by this Declaration of Trust or by
applicable law. The enumeration of any specific power or authority herein shall
not be construed as limiting
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the aforesaid power or authority or any specific power or authority. Without
limiting the foregoing, the Trustees may adopt Bylaws not inconsistent with this
Declaration of Trust providing for the conduct of the business and affairs of
the Trust and may amend and repeal them to the extent that such Bylaws do not
reserve that right to the Shareholders; they may select, and from time to time
change, the fiscal year of the Trust; they may adopt and use a seal for the
Trust, PROVIDED, that unless otherwise required by the Trustees, it shall not be
necessary to place the seal upon, and its absence shall not impair the validity
of, any document, instrument or other paper executed and delivered by or on
behalf of the Trust; they may from time to time in accordance with the
provisions of Section 6.1 hereof establish one or more Portfolios to which they
may allocate such of the Trust Property, subject to such liabilities, as they
shall deem appropriate, each such Portfolio to be operated by the Trustees as a
separate and distinct investment medium and with separately defined investment
objectives and policies and distinct investment purposes, all as established by
the Trustees, or from time to time changed by them; they may as they consider
appropriate elect and remove officers and appoint and terminate agents and
consultants and hire and terminate employees, any one or more of the foregoing
of whom may be a Trustee; they may appoint from their own number, and terminate,
any one or more committees consisting of one or more Trustees, including without
implied limitation an Executive Committee, which may, when the Trustees are not
in session and subject to the 1940 Act, exercise some or all of the power and
authority of the Trustees as the Trustees may determine; in accordance with
Section 5.2 they may employ one or more Investment Advisers, Administrators and
Custodians and may authorize any Custodian to employ sub-custodians or agents
and to deposit all or any part of such assets in a system or systems for the
central handling of Securities, retain Transfer, Dividend Disbursing, Accounting
or Shareholder Servicing Agents or any of the foregoing, provide for the
distribution of Shares by the Trust through one or more Distributors, Principal
Underwriters or otherwise, set record dates or times for the determination of
Shareholders entitled to participate in, benefit from or act with respect to
various matters; and in general they may delegate to any officer of the Trust,
to any Committee of the Trustees and to any employee, Investment Adviser,
Administrator, Distributor, Custodian, Transfer Agent, Dividend Disbursing
Agent, or any other agent or consultant of the Trust, such authority, powers,
functions and duties as they consider desirable or appropriate for the conduct
of the business and affairs of the Trust, including without implied limitation
the power and authority to act in the name of the Trust and of the Trustees, to
sign documents and to act as attorney-in-fact for the Trustees Without limiting
the foregoing and to the extent not inconsistent with the 1940 Act or other
applicable law, the Trustees shall have power and authority:
(a) INVESTMENTS. To invest and reinvest cash and other
property; to buy, for cash or on margin, and otherwise acquire and
hold, Securities created or issued by any Persons, including Securities
maturing after the possible termination of the Trust; to make payment
therefor in any lawful manner in exchange for any of the Trust
Property; and to hold cash or other property uninvested without in any
event being bound or limited by any present or future law or custom in
regard to investments by trustees;
(b) DISPOSITION OF ASSETS. To lend, sell, exchange, mortgage,
pledge, hypothecate, grant security interests in, encumber, negotiate,
convey. transfer or otherwise dispose of, and to trade in, any and all
of the Trust Property, free and clear of all trusts, for cash or on
terms, with or without advertisement, and on such terms and conditions
as to payment, security or otherwise, all as they shall deem necessary
or expedient;
(c) OWNERSHIP POWERS. To vote or give assent, or exercise any
and all other rights, powers and privileges of ownership with respect
to. and to perform any and all duties and obligations as owners of, any
Securities or other property forming part of the Trust Property, the
same as any individual might do; to exercise powers and rights of
subscription or otherwise which in any manner arise out of ownership of
Securities, and to receive powers of attorney from, and to execute and
deliver proxies or powers of attorney to, such Person or Persons as the
Trustees shall deem proper, re-
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ceiving from or granting to such Person or Persons such power and
discretion with relation to Securities or other property of the Trust,
all as the Trustees shall deem proper;
(d) FORM OF HOLDING. To hold any Security or other property in
a form not indicating any trust, whether in bearer, unregistered or
other negotiable form, or in the name of the Trustees or of the Trust,
or of the Portfolio to which such Securities or property belong, or in
the name of a Custodian, subcustodian or other nominee or nominees, or
otherwise, upon such terms, in such manner or with such powers, as the
Trustees may determine, and with or without indicating any trust or the
interest of the Trustees therein;
(e) REORGANIZATION, ETC. To consent to or participate in any
plan for the reorganization, consolidation or merger of any corporation
or issuer, any Security of which is or was held in the Trust or any
Portfolio; 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 forming part of the Trust
Property;
(f) VOTING TRUSTS, ETC. To join with other holders of any
Securities in acting through a committee, depository, voting trustee or
otherwise, and in that connection to deposit any Security with, or
transfer any Security to, any such committee, depository 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, depository or trustee as
the Trustees shall deem proper;
(g) CONTRACTS, ETC. To enter into, make and perform all such
obligations, contracts, agreements and undertakings of every kind and
description, with any Person or Persons, as the Trustees shall in their
discretion deem expedient in the conduct of the business of the Trust,
for such terms as they shall see fit, whether or not extending beyond
the term of office of the Trustees, or beyond the possible expiration
of the Trust, to amend, extend, release or cancel any such obligations,
contracts, agreements or understandings, and to execute, acknowledge,
deliver and record all written instruments which they may deem
necessary or expedient in the exercise of their powers;
(h) GUARANTEES, ETC. 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; and to mortgage and pledge the Trust Property or any part
thereof to secure any of or all such obligations;
(i) PARTNERSHIPS, ETC. To enter into joint ventures, general
or limited partnerships and any other combinations or associations;
(j) INSURANCE. To purchase and pay for entirely out of Trust
Property such insurance as they may deem necessary or appropriate for
the conduct of the business, including, without limitation, insurance
policies insuring the assets of the Trust and payment of distributions
and principal on its portfolio investments, and insurance policies
insuring the Shareholders, Trustees, officers, employees, agents,
consultants, Investment Advisers, managers, Administrators,
Distributors, Principal Underwriters, or other independent contractors,
or any thereof (or any Person connected therewith), of the Trust,
individually, against all claims and liabilities of every nature
arising by reason of 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 in any such capacity. 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 such liability;
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(k) PENSIONS, ETC. To pay pensions for faithful service, as
deemed appropriate by the Trustees, and 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;
(1) POWER OF COLLECTION AND LITIGATION. To collect, sue for
and receive all sums of money coming due to the Trust, to employ
counsel, and to commence, engage in, prosecute, intervene in, join,
defend, compound, compromise, adjust or abandon, in the name of the
Trust, any and all actions, suits, proceedings, disputes, claims,
controversies, demands or other litigation or legal proceedings
relating to the Trust, the business of the Trust, the Trust Property,
or the Trustees, officers, employees, agents and other independent
contractors of the Trust, in their capacity as such, at law or in
equity, or before any other bodies or tribunals, and to compromise,
arbitrate or otherwise adjust any dispute to which the Trust may be a
party, whether or not any suit is commenced or any claim shall have
been made or asserted;
(m) ISSUANCE AND REPURCHASE OF SHARES. To issue, sell,
repurchase, redeem, retire, cancel, acquire, hold, resell, reissue,
dispose of, transfer, and otherwise deal in Shares of any Series, and,
subject to Article 6 hereof; to apply to any such repurchase,
redemption, retirement, cancellation or acquisition of Shares of any
Series, any of the Portfolio Assets belonging to the Portfolio to which
such Series relates, whether constituting capital or surplus or
otherwise, to the full extent now or hereafter permitted by applicable
law; PROVIDED, that any Shares belonging to the Trust shall not be
voted, directly or indirectly;
(n) OFFICES. To have one or more offices, and to carry on all
or any of the operations and business of the Trust, in any of the
States, Districts or Territories of the United States, and in any and
all foreign countries, subject to the laws of such State, District,
Territory or country;
(o) EXPENSES. To incur and pay any and all such expenses and
charges as they may' deem advisable (including without limitation
appropriate fees to themselves as Trustees), and to pay all such sums
of money for which they may be held liable by way of damages, penalty,
fine or otherwise;
(p) AGENTS, ETC. To retain and employ any and all such
servants, agents, employees, attorneys, brokers, investment advisers,
accountants, architects, engineers, builders, escrow agents,
depositories, consultants, ancillary trustees, custodians, agents for
collection, insurers, banks and officers, as they think best for the
business of the Trust or any Portfolio, to supervise and direct the
acts of any of the same, and to fix and pay their compensation and
define their duties;
(q) ACCOUNTS. To determine, and from time to time change, the
method or form in which the accounts of the Trust shall be kept;
(r) VALUATION. Subject to the requirements of the 1940 Act, to
determine from time to time the value of all or any part of the Trust
Property and of any services, Securities, property, or other
consideration to be furnished to or acquired by the Trust, and from
time to time to revalue all or any part of the Trust Property in
accordance with such appraisals or other information as is, in the
Trustees' sole judgment, necessary and satisfactory;
(s) INDEMNIFICATION. In addition to the mandatory
indemnification provided for in Article 8 hereof and to the extent
permitted by law, to indemnify or enter into agreements with re-
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spect to indemnification with any Person with whom this Trust has
dealings, including, without limitation, any independent contractor, to
such extent as the Trustees shall determine; and
(t) GENERAL. To do all such other acts and things and to
conduct, operate, carry on and engage in such other lawful businesses
or business activities as they shall in their sole and absolute
discretion consider to be incidental to the business of the Trust or
any Portfolio as an investment company, and to exercise all powers
which they shall in their discretion consider necessary, useful or
appropriate to carry on the business of the Trust or any Portfolio, to
promote any of the purposes for which the Trust is formed, whether or
not such things are specifically mentioned herein, in order to protect
or promote the interests of the Trust or any Portfolio, or otherwise to
carry out the provisions of this Declaration.
SECTION 3.2 BORROWINGS; FINANCINGS; ISSUANCE OF SECURITIES The Trustees
shall have power to borrow or in any other manner raise such sum or sums of
money, and to incur such other indebtedness for goods or services, or for or in
connection with the purchase or other acquisition of property, as they shall
deem advisable for the purposes of the Trust, in any manner and on any terms,
and to evidence the same by negotiable or non-negotiable Securities which may
mature at any time or times, even beyond the possible date of termination of the
Trust; to issue Securities of any type for such cash, property, services or
other considerations, and at such time or times and upon such terms, as they may
deem advisable; and to reacquire any such Securities. Any such Securities of the
Trust may, at the discretion of the Trustees, be made convertible into Shares of
any Series, or may evidence the right to purchase, subscribe for or otherwise
acquire Shares of any Series, at such times and on such terms as the Trustees
may prescribe.
SECTION 3.3 DEPOSITS. Subject to the requirements of the 1940 Act, the
Trustees shall have power to deposit any moneys or Securities included in the
Trust Property with any one or more banks, trust companies or other banking
institutions, whether or not such deposits will draw interest Such deposits are
to be subject to withdrawal in such manner as the Trustees may determine, and
the Trustees shall have no responsibility for any loss which may occur by reason
of the failure of the bank. trust company or other balancing institution with
which any such moneys or Securities have been deposited, other than liability
based on their gross negligence or willful fault.
SECTION 3.4 ALLOCATIONS. The Trustees shall have power to determine
whether moneys or other assets received by the Trust shall be charged or
credited to income or capital, or allocated between income and capital,
including the power to amortize or fail to amortize any part or all of any
premium or discount, to treat any part or all of the profit resulting from the
maturity or sale of any asset, whether purchased at a premium or at a discount,
as income or capital, or to apportion the same been income and capital, to
apportion the sale price of any asset between income and capital, and to
determine in what manner any expenses or disbursements are to be borne as
between income and capital, whether or not in the absence of the power and
authority conferred by this Section 3.4 such assets would be regarded as income
or as capital or such expense or disbursement would be charged to income or to
capital, to treat any dividend or other distribution on any investment as income
or capital, or to apportion the same between income and capital; to provide or
fail to provide reserves, including reserves for depreciation, amortization or
obsolescence in respect of any Trust Property in such amounts and by such
methods as they shall determine, to allocate less than all of the consideration
paid for Shares of any Series to the shares of beneficial interest account of
the Portfolio to which such Shares relate and to allocate the balance thereof to
paid-in capital of that Portfolio, and to reallocate such amounts from time to
time; all as the Trustees may reasonably deem proper.
SECTION 3.5 FURTHER POWERS; LIMITATIONS. The Trustees shall have power
to do all such other matters and things, and to execute all such instruments, as
they deem necessary, proper or desirable in order to carry out, promote or
advance the interests of the Trust, although such matters or things are not
herein specifically mentioned. Any determination as to what is in the interests
of the Trust made by the Trustees in
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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.
The Trustees shall not be required to obtain any court order to deal with the
Trust Property. The Trustees may limit their right to exercise any of their
powers through express restrictive provisions in the instruments evidencing or
providing the terms for any Securities of the Trust or in other contractual
instruments adopted on behalf of the Trust.
ARTICLE 4
TRUSTEES AND OFFICERS
SECTION 4.1 NUMBER, DESIGNATION, ELECTION, TERM, ETC.
[Subsection (a) of this Section 4.1 is intentionally omitted.].
(b) NUMBER. The Trustees serving as such, whether named below
or hereafter becoming Trustees, may, by a written instrument signed by a
Majority of the Trustees (or by an officer of the Trust pursuant to the
vote of a Majority of the Trustees), increase or decrease the number of
Trustees to a number other than the number theretofore determined. No
decrease in the number of Trustees shall have the effect of removing any
Trustee from office prior to the expiration of his term, but the number
of Trustees may be decreased in conjunction with the removal of a
Trustee pursuant to subsection (e) of this Section 4.1.
(c) ELECTION AND TERM. The Trustees shall be elected by the
Shareholders of the Trust at the first meeting of Shareholders
immediately prior to the initial public offering of Shares of the Trust,
and the term of office of any Trustees in office before such election
shall terminate at the time of such election. Subject to Section 16(a)
of the 1940 Act and to the preceding sentence of this subsection (c),
the Trustees shall have the power to set and alter the terms of office
of the Trustees, and at any time to lengthen or shorten their own terms
or make their terms of unlimited duration, to elect their own successors
and, pursuant to subsection (f) of this Section 4.1 to appoint Trustees
to fill vacancies; PROVIDED, that Trustees shall be elected by a
Majority Shareholder Vote at any such time or times as the Trustees
shall determine that such action is required under Section 16(a) of the
1940 Act or, if not so required, that such action is advisable; and
PROVIDED, that, after the initial election of Trustees by the
Shareholders, the term of office of any incumbent Trustee shall continue
until the termination of this Trust or his earlier death, resignation,
retirement, bankruptcy, adjudicated incompetency or other incapacity or
removal, or if not so terminated, until the election of such Trustee's
successor in office has become effective in accordance with this
subsection (c).
(d) RESIGNATION AND RETIREMENT. Any Trustee may resign his
trust or retire as a Trustee, by a written instrument signed by him and
delivered to the other Trustees or to any officer of the Trust, and such
resignation or retirement shall take effect upon such delivery or upon
such later date as is specified in such instrument.
(e) REMOVAL. Any Trustee may be removed with or without cause
at any time: (i) by written instrument, signed by at least two-thirds
(2/3) of the number of Trustees prior to such removal, specifying the
date upon which such removal shall become effective; or (ii) by vote of
Shareholders holding not less than two-thirds (2/3) of the Shares of
each Series then outstanding, cast in person or by proxy at any meeting
called for the purpose; or (iii) by a written declaration signed by
Shareholders holding not less than two-thirds (2/3) of the Shares of
each Series then outstanding and filed with the Trust's Custodian.
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(f) VACANCIES. Any vacancy or anticipated vacancy resulting
from any reason, including an increase in the number of Trustees, may
(but need not unless required by the 1940 Act) be filled by a Majority
of the Trustees, subject to the provisions of Section 16(a) of the 1940
Act, through the appointment in writing of such other individual as
such remaining Trustees in their discretion shall determine; PROVIDED,
that if there shall be no Trustees in office, such vacancy or vacancies
shall be filled by vote of the Shareholders. Any such appointment or
election shall be effective upon such individual's written acceptance
of his appointment as a Trustee and his agreement to be bound by the
provisions of this Declaration of Trust, except that any such
appointment in anticipation of a vacancy to occur by reason of
retirement, resignation or increase in the number of Trustees to be
effective at a later date shall become effective only at or after the
effective date of said retirement, resignation or increase in the
number of Trustees.
(g) ACCEPTANCE OF TRUSTS. Any individual appointed as a
Trustee under subsection (f), and any individual elected as a Trustee
under subsection (c), of this Section 4.1 who was not, immediately
prior to such election, acting as a Trustee, shall accept such
appointment or election in writing and agree in such writing to be
bound by the provisions hereof; and whenever such individual shall have
executed such writing and any conditions to such appointment or
election shall have been satisfied, such individual shall become a
Trustee and the Trust Property shall vest in the new Trustee, together
with the continuing Trustees, without any further act or conveyance.
(h) EFFECT OF DEATH, RESIGNATION, ETC. No vacancy, whether
resulting from the death, resignation, retirement, removal or
incapacity of any Trustee, an increase in the number of Trustees or
otherwise, shall operate to annul or terminate the Trust hereunder or
to revoke or terminate any existing agency or contract created or
entered into pursuant to the terms of this Declaration of Trust. Until
such vacancy is filled as provided in this Section 4.1, the Trustees in
office (if any), 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. A written instrument certifying the
existence of such vacancy signed by a Majority of the Trustees shall be
conclusive evidence of the existence of such vacancy.
(i) CONVEYANCE. In the event of the resignation or removal of
a Trustee or his otherwise ceasing to be a Trustee, such former Trustee
or his legal representative shall, upon request of the continuing
Trustees, execute and deliver such documents as may be required for the
purpose of consummating or evidencing the conveyance to the Trust or
the remaining Trustees of any Trust Property held in such former
Trustee's name, but the execution and delivery of such documents shall
not be requisite to the vesting of title to the Trust Property in the
remaining Trustees, as provided in subsection (g) of this Section 4.1
and in Section 4.13 hereof.
(j) NO ACCOUNTING. Except to the extent required by the 1940
Act or under circumstances which would justify his removal for cause,
no Person ceasing to be a Trustee (nor the estate of any such Person)
shall be required to make an accounting to the Shareholders or
remaining Trustees upon such cessation.
SECTION 4.2 TRUSTEES' MEETINGS; PARTICIPATION BY TELEPHONE, ETC. An
annual meeting of Trustees shall be held not later than the last day of the
fourth month after the end of each fiscal year of the Trust and special meetings
may be held from time to time, in each case, upon the call of such officers as
may be thereunto authorized by the Bylaws or vote of the Trustees, or by any two
(2) Trustees, or pursuant to a vote of the Trustees adopted at a duly
constituted meeting of the Trustees, and upon such notice as shall be provided
in the Bylaws. The Trustees may act with or without a meeting, and a written
consent to any matter, signed by a Majority of the Trustees, shall be equivalent
to action duly taken at a meeting of the Trustees. duly called and held. Except
as otherwise provided by the 1940 Act or other applicable law, or by this Decla-
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ration of Trust or the Bylaws, any action to be taken by the Trustees may be
taken by a majority of the Trustees present at a meeting of Trustees (a quorum,
consisting of at least a Majority of the Trustees, being present), within or
without Massachusetts. If authorized by the Bylaws, all or any one or more
Trustees may participate in a meeting of the Trustees or any Committee thereof
by means of conference telephone or similar means of communication by means of
which all Persons participating in the meeting can hear each other, and
participation in a meeting pursuant to such means of communication shall
constitute presence in person at such meeting. The minutes of any meeting thus
held shall be prepared in the same manner as a meeting at which all participants
were present in person.
SECTION 4.3 COMMITTEES; DELEGATION. The Trustees shall have power,
consistent with their ultimate responsibility to supervise the affairs of the
Trust, to delegate from time to time to an Executive Committee, and to one or
more other Committees, or to any single Trustee, the doing of such things and
the execution of such deeds or other instruments, either in the name of the
Trust or the names of the Trustees or as their attorney or attorneys in fact, or
otherwise as the Trustees may from time to time deem expedient, and any
agreement, deed, mortgage, lease or other instrument or writing executed by the
Trustee or Trustees or other Person to whom such delegation was made shall be
valid and binding upon the Trustees and upon the Trust.
SECTION 4.4 OFFICERS. The Trustees shall annually elect such officers
or agents, who shall have such powers, duties and responsibilities as the
Trustees may deem to be advisable, and as they shall specify by resolution or in
the Bylaws. Except as may be provided in the Bylaws, any officer elected by the
Trustees may be removed at any time with or without cause. Any two (2) or more
offices may be held by the same individual.
SECTION 4.5 COMPENSATION OF TRUSTEES AND OFFICERS. The Trustees shall
fix the compensation of all officers and Trustees. Without limiting the
generality of any of the provisions hereof, the Trustees shall be entitled to
receive reasonable compensation for their general services as such, and to fix
the amount of such compensation, and to pay themselves or any one or more of
themselves such compensation for special services, including legal, accounting,
or other professional services, as they in good faith may deem reasonable. No
Trustee or officer resigning and (except where a right to receive compensation
for a definite future period shall be expressly provided in a written agreement
with the Trust, duly approved by the Trustees) no Trustee or officer removed
shall have any right to any compensation as such Trustee or officer for any
period following his resignation or removal, or any right to damages on account
of his removal, whether his compensation be by the month, by the year or
otherwise.
SECTION 4.6 OWNERSHIP OF SHARES AND SECURITIES OF THE TRUST. Any
Trustee, and any officer, employee or agent of the Trust, and any organization
in which any such Person is interested, may acquire, own, hold and dispose of
Shares of any Series or Class, and other Securities of the Trust for his or its
individual account, and may exercise all rights of a holder of such Shares or
Securities to the same extent and in the same manner as if such Person were not
such a Trustee, officer, employee or agent of the Trust; subject, in the case of
Trustees and officers, to the same limitations as directors or officers (as die
case may be) of a Massachusetts business corporation; and the Trust may issue
and sell or cause to be issued and sold and may purchase any such Shares or
other Securities 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 Shares of such Series or other Securities of the Trust generally.
SECTION 4.7 RIGHT OF TRUSTEES AND OFFICERS TO OWN PROPERTY AND TO
ENGAGE IN BUSINESS; AUTHORITY OF TRUSTEES TO PERMIT OTHERS TO DO LIKEWISE. The
Trustees, in their capacity as Trustees, and (unless otherwise specifically
directed by vote of the Trustees) the officers of the Trust in their capacity as
such, shall not be required to devote their entire time to the business and
affairs of the Trust. Except as otherwise specifically provided by vote of the
Trustees, or by agreement in any particular case, any Trustee or officer of the
Trust may acquire, own, hold and dispose of; for his own individual account any
property, and acquire, own,
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hold, any on and dispose of, for his own individual account, any business entity
or business activity, whether similar or dissimilar to any property or business
entity or business activity invested in or carried on by the Trust, and without
first offering the same as an investment opportunity to the Trust, and may
exercise all rights in respect thereof as if he were not a Trustee or officer of
the Trust. The Trustees shall also have power, generally or in specific cases,
to permit employees or agents of the Trust to have the same rights (or lesser
rights) to acquire, hold, own and dispose of property and businesses, to carry
on businesses, and to accept investment opportunities without offering them to
the Trust, as the Trustees have by virtue of this Section 4.7.
SECTION 4.8 RELIANCE ON EXPERTS. The Trustees and officers may consult
with counsel, engineers, brokers, appraisers, auctioneers, accountants,
investment bankers, securities analysts or other Persons (any of which may be a
firm in which one or more of the Trustees or officers is or are members or
otherwise interested) whose profession gives authority to a statement made by
them on the subject in question, and who are reasonably deemed by the Trustees
or officers in question to be competent, and the advice or opinion of such
Persons shall be fit and complete personal protection to all of the Trustees and
officers in respect of any action taken or suffered by them in good faith and in
reliance on or m accordance with such advice or opinion. In discharging their
duties, Trustees and officers, when acting in good faith, may rely upon
financial statements of the Trust represented to them to be correct by any
officer of the Trust having charge of its books of account, or stated in a
written report by an independent certified public accountant fairly to present
the financial position of the Trust. The Trustees and officers may rely, and
shall be personally protected in acting, upon any instrument or other document
believed by them to be genuine.
SECTION 4.9 SURETY BONDS. No Trustee, officer, employee or agent of the
Trust shall, as such, be obligated to give any bond or surety or other security
for the performance of any of his duties, unless required by applicable law or
regulation, or unless the Trustees shall otherwise determine in any particular
case.
SECTION 4.10 APPARENT AUTHORITY OF TRUSTEES AND OFFICERS. No purchaser,
lender, transfer agent or other Person dealing with the Trustees or any officer
of the Trust shall be bound to make any inquiry concerning the validity of any
transaction purporting to be made by the Trustees or by such officer, or to make
inquiry concerning or be liable for the application of money or property paid,
loaned or delivered to or on the order of the Trustees or of such officer.
SECTION 4.11 OTHER RELATIONSHIPS NOT PROHIBITED. The fact that:
(i) any of the Shareholders, Trustees or officers of the Trust
is a shareholder, director, officer, partner, trustee, employee,
manager, adviser, principal underwriter or distributor or agent of or
for any Contracting Party (as defined in Section 5.2 hereof), or of or
for any parent or affiliate of any Contracting Party, or that the
Contracting Party or any parent or affiliate thereof is a Shareholder
or has an interest in the Trust or any Portfolio, or that
(ii) any Contracting Party may have a contract providing for
the rendering of any similar services to one or more other
corporations, trusts, associations, partnerships, limited partnerships
or other organizations, or have other business or interests,
shall not affect the validity of any contract for the performance and assumption
of services, duties and responsibilities to, for or of the Trust and/or the
Trustees or disqualify any Shareholder, Trustee or officer of the Trust from
voting upon or executing the same or create any liability or accountability to
the Trust or to the holders of Shares of any Series; PROVIDED, that, in the case
of any relationship or interest referred to in the preceding clause (i) on the
part of any Trustee or officer of the Trust, either (x) the material facts as to
such relationship or interest have been disclosed to or are known by the
Trustees not having any such relationship or interest and the contract involved
is approved in good faith by a majority of such Trustees not having any
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such relationship or interest (even though such unrelated or disinterested
Trustees are less than a quorum of all of the Trustees), (y) the material facts
as to such relationship or interest and as to the contract have been disclosed
to or are known by the Shareholders entitled to vote thereon and the contract
involved is specifically approved in good faith by vote of the Shareholders, or
(z) the specific contract involved is fair to the Trust as of the time it is
authorized, approved or ratified by the Trustees or by the Shareholders.
SECTION 4.12 PAYMENT OF TRUST EXPENSES. The Trustees are authorized to
pay or to cause to be paid out of the principal or income of the Trust, or
partly out of principal and partly Out of income, and according to any
allocation to particular Portfolios made by them pursuant to Section 6.2(b)
hereof, all expenses, fees, charges, taxes and liabilities incurred or arising
in connection with the business and affairs of 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, Administrator, Distributor, Principal
Underwriter, auditor, counsel, Custodian, Transfer Agent, Dividend Disbursing
Agent, Accounting Agent, Shareholder Servicing Agent, and such other agents,
consultants, and independent contractors and such other expenses and charges as
the Trustees may deem necessary or proper to incur.
SECTION 4.13 OWNERSHIP OF THE TRUST PROPERTY. Legal title to all the
Trust Property shall be vested in the Trustees as joint tenants, 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 of any particular Portfolio, or in the name of any other Person as nominee,
on such terms as the Trustees may determine; PROVIDED that the interest of the
Trust and of the respective Portfolio therein is appropriately protected. 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
termination of the term of office of a Trustee as provided in Section 4.1(c),
(d) or (e) hereof; such Trustee 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 pursuant
to Section 4.1(i) hereof.
ARTICLE 5
DELEGATION OF MANAGERIAL RESPONSIBILITIES
SECTION 5.1 APPOINTMENT; ACTION BY LESS THAN ALL TRUSTEES. The Trustees
shall be responsible for the general operating policy of the Trust and for the
general supervision of the business of the Trust conducted by officers, agents,
employees or advisers of the Trust or by independent contractors, but the
Trustees shall not be required personally to conduct all the business of the
Trust and, consistent with their ultimate responsibility as stated herein, the
Trustees may appoint, employ or contract with one or more officers, employees
and agents to conduct, manage and/or supervise the operations of the Trust, and
may grant or delegate such authority to such officers, employees and/or agents
as the Trustees may, in their sole discretion, deem to be necessary or
desirable, without regard to whether such authority is normally granted or
delegated by trustees. With respect to those matters of the operation and
business of the Trust which they shall elect to conduct themselves, except as
otherwise provided by this Declaration or the Bylaws, if any, the Trustees may
authorize any single Trustee or defined group of Trustees, or any committee
consisting of a number of Trustees less than the whole number of Trustees then
in office without specification of the particular Trustees required to be
included therein, to act for and to bind the Trust, to the same extent as the
whole number of Trustees could do, either with respect to one or more particular
matters or classes of matters, or generally.
SECTION 5.2 CERTAIN CONTRACTS. Subject to compliance with the
provisions of the 1940 Act, but notwithstanding any limitations of present and
future law or custom in regard to delegation of powers by trustees generally,
the Trustees may, at any time and from time to time in their discretion and
without limiting
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the generality of their powers and authority otherwise set forth herein, enter
into one or more contracts with any one or more corporations, trusts,
associations, partnerships, limited partnerships or other types of
organizations, or individuals ("CONTRACTING PARTY"), to provide for the
performance and assumption of some or all of the following services, duties and
responsibilities to, for or on behalf of the Trust and/or any Portfolio, and/or
the Trustees, and to provide for the performance and assumption of such other
services, duties and responsibilities in addition to those set forth below, as
the Trustees may deem appropriate:
(a) ADVISORY. An investment advisory or management agreement
whereby the In-vestment Adviser shall undertake to furnish the Trust
such management, investment advisory or supervisory, administrative,
accounting, legal, statistical and research facilities and services,
and such other facilities and services, if any, as the Trustees shall
from time to time consider desirable, all upon such terms and
conditions as the Trustees may in their discretion determine to be not
inconsistent with this Declaration, the applicable provisions of the
1940 Act or any applicable provisions of the Bylaws. Any such advisory
or management agreement and any amendment thereto shall be subject to
approval by a Majority Shareholder Vote at a meeting of the
Shareholders of the Trust. Notwithstanding any provisions of this
Declaration, the Trustees may authorize the Investment Adviser (subject
to such general or specific instructions as the Trustees may from time
to time adopt) to effect purchases, sales, loans or exchanges of
portfolio securities of the Trust on behalf of the Trustees or may
authorize any officer or employee of the Trust or any Trustee to effect
such purchases, sales, loans or exchanges pursuant to recommendations
of the Investment Adviser (and all without further action by the
Trustees). Any such purchases, sales, loans and exchanges shall be
deemed to have been authorized by all of the Trustees. The Trustees
may, in their sole discretion, call a meeting of Shareholders in order
to submit to a vote of Shareholders at such meeting the approval of
continuance of any such investment advisory or management agreement. If
the Shareholders of any Portfolio should fail to approve any such
investment advisory or management agreement, the Investment Adviser may
nonetheless serve as Investment Adviser with respect to any other
Portfolio whose Shareholders shall have approved such contract.
(b) ADMINISTRATION. An agreement whereby the agent, subject to
the general supervision of the Trustees and in conformity with any
policies of the Trustees with respect to the operations of the Trust
and each Portfolio, will supervise all or any part of the operations of
the Trust and each Portfolio, and will provide all or any part of the
administrative and clerical personnel, office space and office
equipment and services appropriate for the efficient administration and
operations of the Trust and each Portfolio (any such agent being herein
referred to as an "ADMINISTRATOR").
(c) DISTRIBUTION. An agreement providing for the sale of
Shares of any one or more Series, or Classes of any Series, to net the
Trust not less than the net asset value per Share (as described in
Section 6.2(h) hereof) and pursuant to which the Trust may appoint the
other party to such agreement as its principal underwriter or sales
agent for the distribution of such Shares. The agreement shall contain
such terms and conditions as the Trustees may m their discretion
determine to be not inconsistent with this Declaration, the applicable
provisions of the 1940 Act and any applicable provisions of the Bylaws
(any such agent being herein referred to as a "DISTRIBUTOR" or a
"PRINCIPAL UNDERWRITER", as the case may be).
(d) CUSTODIAN. The appointment of a bank or trust company
having an aggregate capital, surplus and undivided profits (as shown in
its last published report) of at least two million dollars ($2,000,000)
as custodian of the Securities and cash of the Trust and of each
Portfolio and of the accounting records in connection therewith (any
such agent being herein referred to as a "CUSTODIAN").
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(e) TRANSFER AND DIVIDEND DISBURSING AGENCY. An agreement with
an agent to maintain records of the ownership of outstanding Shares and
the issuance and redemption and the transfer thereof (any such agent
being herein referred to as a "TRANSFER AGENT"), and to disburse any
dividends declared by the Trustees and in accordance with the policies
of the Trustees and/or the instructions of any particular Shareholder
to reinvest any such dividends (any such agent being herein referred to
as a "DIVIDEND DISBURSING AGENT").
(f) SHAREHOLDER SERVICING. An agreement with an agent to
provide service with respect to the relationship of the Trust and its
Shareholders, records with respect to Shareholders and their Shares,
and similar matters (any such agent being herein referred to as a
"Shareholder SERVICING Agent").
(g) ACCOUNTING. An agreement with an agent to handle all or
any part of the accounting responsibilities, whether with respect to
the Trust's properties, Shareholders or otherwise (any such agent being
herein referred to as an "ACCOUNTING AGENT").
The same Person may be the Contracting Party for some or all of the services,
duties and responsibilities to, for and of the Trust and/or the Trustees, and
the contracts with respect thereto may contain such terms interpretive of or in
addition to the delineation of the services, duties and responsibilities
provided for, including provisions that are not inconsistent with the 1940 Act
relating to the standard of duty of and the rights to indemnification of the
Contracting Party and others, as the Trustees may determine Nothing herein shall
preclude, prevent or limit the Trust or a Contracting Party from entering into
sub-contractual arrangements relative to any of the matters referred to in
subsections (a) through (g) of this Section 5.2.
ARTICLE 6
PORTFOLIOS AND SHARES
SECTION 6.1 DESCRIPTION OF PORTFOLIOS AND SHARES.
(a) SHARES; PORTFOLIOS; SERIES AND CLASSES OF SHARES. The beneficial
interest in the Trust shall be divided into Shares having a nominal or par value
of one mil ($.001) per Share, of which an unlimited number may be issued. The
Trustees shall have the power and authority (without any requirement of
Shareholder approval) from time to time to establish and designate one or more
separate, distinct and independent Portfolios, in addition to the Spectra
Portfolio established and designated by Section 6.2 hereof, into which the
assets of the Trust shall be divided, to authorize a separate Series of Shares
for each such additional Portfolio (each of which Series, including without
limitation the Spectra Series authorized in Section 6.2 hereof, shall represent
beneficial interests only in the Portfolio with respect to which such Series was
authorized), and to authorize two or more separate Classes of Shares of any such
Series, as they deem necessary or desirable and to fix and determine the
relative rights and preferences as between the shares of the respective Series
as to rights of redemption and the price, terms and manner of redemption,
special and relative rights as to dividends and other distributions and on
liquidation, sinking or purchase fund provisions, conversion rights. and
conditions under which the Shareholders of the several Series shall have
separate voting rights or no voting rights. The Trustees shall have the power to
classify or reclassify any unissued Shares of any Series, or any Shares of any
Series previously issued and reacquired by the Trust (including in either case
any Shares of the Spectra Portfolio established and designated by Section 6.2
hereof) into any number of additional Classes of such Series by from time to
time setting or changing in one or more respects provisions applicable to such
Class or Classes relating to sales charges, any rights of redemption and the
price, terms and manner of redemption, special and relative rights as to
dividends and other distributions and on liquidation, sinking or purchase fund
provisions and conversion rights, and (subject to Article 7 hereof) the
conditions under which the Shareholders of the several Classes shall have
separate voting rights or no voting rights. Except
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as otherwise provided as to a particular Portfolio herein, or in the Certificate
of Designation therefor, the Trustees shall have all the rights and powers, and
be subject to all the duties and obligations, with respect to each such
Portfolio and the assets and affairs thereof as they have under this Declaration
with respect to the Trust and the Trust Property in general.
(b) ESTABLISHMENT, ETC. OF PORTFOLIOS; AUTHORIZATION OF SHARES. The
establishment and designation of any Portfolio (in addition to the Spectra
Portfolio established and designated in Section 6.2 hereof) and the
authorization of the Shares thereof shall be effective upon the execution by a
Majority of the Trustees (or by an officer of the Trust pursuant to the vote of
a Majority of the Trustees) of an instrument setting forth such establishment
and designation and the relative rights and preferences of the Shares of the
Series representing the beneficial interests in such Portfolio and the manner in
which the same may be amended (a "CERTIFICATE OF DESIGNATION"), which may
provide that the number of Shares of such Series that may be issued is
unlimited, or may limit the number issuable. At any time (a) that there are no
Shares outstanding of the Series that represents the beneficial interests in any
Portfolio previously established and designated, including the Spectra Series
established and designated by Section 6.2 hereof, or (b) any shares of a
particular Class previously established and designated for any Series, and also,
in the case of any Class of a Series of which there are outstanding no Shares of
any other Class of such Series which are convertible into Shares of the
particular Class, the Trustees may by an instrument executed by a Majority of
the Trustees (or by an officer of the Trust pursuant to the vote of a Majority
of the Trustees) terminate such Portfolio and the Series representing the
beneficial interests therein, or such Class, as the case may be, and the
establishment and designation thereof and the authorization of its Shares (a
"CERTIFICATE OF Termination"). Each Certificate of Designation, Certificate of
Termination and any instrument amending a Certificate of Designation shall have
the status of an amendment to this Declaration of Trust, and shall be filed as
provided m Section 9.4 hereof, but such filing shall not be a prerequisite to
the effectiveness thereof.
(c) CHARACTER OF SEPARATE PORTFOLIOS AND SHARES THEREOF. Each Portfolio
established hereunder shall be a separate component of the assets of the Trust,
and the holders of Shares of the Series representing the beneficial interests in
that Portfolio shall be considered Shareholders of such Portfolio, but such
Shareholders shall also be considered Shareholders of the Trust for purposes of
receiving reports and notices and, except as otherwise provided herein or in the
Certificate of Designation of a particular Portfolio as to such Portfolio, or as
required by the 1940 Act or other applicable law, the right to vote, all without
distinction by Series.
(d) CONSIDERATION FOR SHARES. The Trustees may issue Shares of any
Series for such consideration (which may include property subject to, or
acquired in connection with the assumption of, liabilities) and on such terms as
they may determine (or for no consideration if pursuant to a Share dividend or
split-up), all without action or approval of the Shareholders. All Shares when
so issued on the terms determined by the Trustees shall be fully paid and
non-assessable may be subject to mandatory contribution back to the Trust as
provided in Section 6.2) hereof). The Trustees may classify or reclassify any
unissued Shares, or any Shares of any Series previously issued and reacquired by
the Trust, into Shares of one or more other Portfolios that may be established
and designated from time to time.
SECTION 6.2 ESTABLISHMENT AND DESIGNATION OF THE SPECTRA PORTFOLIO AND
OF THE SHARES THEREOF GENERAL PROVISIONS FOR ALL PORTFOLIOS. Without limiting
the authority of the Trustees set forth in Section 6.1(a) hereof to establish
and designate further Portfolios, there are hereby established and designated
the Spectra Portfolio and the Shares thereof, which shall be known as the
Spectra Series; an unlimited number of Shares of such Series may be issued. The
Shares of the Spectra Series, and the Shares representing the beneficial
interest in any further Portfolios that may from time to time be established and
designated by the Trustees shall (unless the Trustees otherwise determine with
respect to some further Portfolio at the time of establishing and designating
the same) have the following relative rights and preferences:
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(a) ASSETS BELONGING TO PORTFOLIOS. Any portion of the Trust
Property allocated to a particular Portfolio, and all consideration
received by the Trust for the issue or sale of Shares of such
Portfolio, together with all assets in which such consideration is
invested or reinvested, all interest, dividends, income, earnings,
profits and gains therefrom, and proceeds thereof, including 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 be held by the
Trustees in trust for the benefit of the holders of Shares of that
Portfolio and shall irrevocably belong to that Portfolio for all
purposes, and shall be so recorded upon the books of account of the
Trust, and the Shareholders of such Portfolio shall not have, and shall
be conclusively deemed to have waived, any claims to the assets of any
Portfolio of which they are not Shareholders. Such consideration,
assets, interest, dividends, income, earnings, profits, gains and
proceeds, together with any General Items allocated to that Portfolio
as provided in the following sentence, arc herein referred to
collectively as "PORTFOLIO ASSETS" of such Portfolio, and as assets
"BELONGING TO" that Portfolio. In the event that there are any assets,
income, earnings, profits, and proceeds thereof, funds, or payments
which are not readily identifiable as belonging to any particular
Portfolio (collectively "GENERAL Items"), the Trustees shall allocate
such General Items to and among any one or more of the Portfolios
established and designated from time to time in such manner and on such
basis as they, in their sole discretion, deem fair and equitable; and
any General Items so allocated to a particular Portfolio shall belong
to and be part of the Portfolio Assets of that Portfolio. Each such
allocation by the Trustees shall be conclusive and binding upon the
Shareholders of all Portfolios for all purposes.
(b) LIABILITIES OF PORTFOLIOS. The assets belonging to each
particular Portfolio shall be charged with the liabilities in respect
of that Portfolio and all expenses, costs, charges and reserves
attributable to that Portfolio, and any general liabilities, expenses,
costs, charges or reserves of the Trust which are not readily
identifiable as pertaining to any particular Portfolio shall be
allocated and charged by the Trustees to and among any one or more of
the Portfolios established and designated from time to time in such
manner and on such basis as the Trustees in their sole discretion deem
fair and equitable. The indebtedness, expenses, costs, charges and
reserves allocated and so charged to a particular Portfolio are herein
referred to as "LIABILITIES OF' that Portfolio. Each allocation of
liabilities, expenses, costs, charges and reserves by the Trustees
shall be conclusive and binding upon the Shareholders of all Portfolios
for all purposes. Any creditor of any Portfolio may look only to the
assets of that Portfolio to satisfy such creditor's debt, and the
creditors of a particular Class of a Portfolio may look only to the
share of that Class in the assets of the Portfolio to which it pertains
to satisfy their claims.
(c) DIVIDENDS. Dividends and distributions on Shares of a
particular Series may be paid with such frequency as the Trustees may
determine, which may be daily or otherwise pursuant to a standing
resolution or resolutions adopted only once or with such frequency as
the Trustees may determine, to the Shareholders of that Series, from
such of the income, accrued or realized, and capital gains, realized or
unrealized, and out of the assets belonging to the Portfolio to which
such Series pertains, as the Trustees may determine, after providing
for actual and accrued liabilities of that Portfolio. All dividends and
distributions on Shares of a Series without separate Classes shall be
distributed pro rata to the holders of Shares of that Series in
proportion to the number of such Shares held by such holders at the
date and time of record established for the payment of such dividends
or distributions. Dividends and distributions on the Shares of a
Portfolio having separate Classes of Shares shall be in such amount as
may be declared from time to time by the Trustees, and such dividends
and distributions may vary as between such Classes to reflect differing
allocations among such Classes of the liabilities, expenses, costs.
charges and reserves of such Portfolio, and any resultant differences
between the net asset value of such several Classes, to such extent and
for such purposes as the Trustees may deem appropriate, but dividends
and distributions on the Shares of a particular Class shall be
distributed pro rata to the Shareholders of that Class in proportion to
the
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number of such Shares held by such holders at the date and time of
record established for the payment of such dividends and distributions.
Notwithstanding the last two preceding sentences, the Trustees may
determine, in connection with any dividend or distribution program or
procedure, that no dividend or distribution shall be payable on Shares
as to which the Shareholder's purchase order and/or payment have not
been received by the time or times established by the Trustees under
such program or procedure, or that dividends or distributions shall be
payable on Shares which have been tendered by the holder thereof for
redemption or repurchase, but the redemption or repurchase proceeds of
which have not yet been paid to such Shareholder. Dividends and
distributions on the Shares of a Series may be made in cash or Shares
of any Class of that Series or a combination thereof as determined by
the Trustees, or pursuant to any program that the Trustees may have in
effect at the time for the election by each Shareholder of the mode of
the making of such dividend or distribution to that Shareholder. Any
such dividend or distribution paid in Shares will be paid at the net
asset value thereof as determined in accordance with subsection (h) of
this Section 6.2.
(d) LIQUIDATION. In the event of the liquidation or
dissolution of the Trust, the Shareholders of each Portfolio of which
Shares are outstanding shall be entitled to receive, when and as
declared by the Trustees, the excess of the Portfolio Assets over the
liabilities of such Portfolio. The assets so distributable to the
Shareholders of any particular Series without separate Classes of
Shares shall be distributed among such Shareholders in proportion to
the number of Shares of that Series held by them and recorded on the
books of the Trust. The assets so distributable to the Shareholders of
any Portfolio having separate Classes of Shares shall be allocated
among such Classes in proportion to the respective aggregate net asset
value of the outstanding Shares thereof, and shall be distributed to
the Shareholders of each such Class in proportion to the number of
Shares of that Class held by them and recorded on the books of the
Trust The liquidation of any Portfolio, or any Class of any Portfolio,
may be authorized by vote of a Majority of the Trustees, subject to the
affirmative vote of "a majority of the outstanding voting securities"
of the Series representing the beneficial interests in that Portfolio,
or in that Class of such Series, as the quoted phrase is defined in the
1940 Act. determined in accordance with clause (iii) of the definition
of "MAJORITY SHAREHOLDER VOTE" in Section 1.4 hereof.
(e) VOTING. The Shareholders shall have the voting rights set
forth in or determined under Article 7 hereof.
(f) REDEMPTION BY SHAREHOLDER. Each holder of Shares of a
particular Series or Class shall have the right at such times as may be
permitted by the Trust, but no less frequently than once each week, to
require the Trust to redeem all or any part of such Shares at a
redemption price equal to the net asset value per Share of that Series
or Class next determined in accordance with subsection (h) of this
Section 6.2 after the Shares are properly tendered for redemption;
PROVIDED, that the Trustees may from time to time, in their discretion,
determine and impose a fee for such redemption, and the proceeds of the
redemption of Shares (including a fractional Share) of any Series or
Class shall be reduced by the amount of any applicable contingent
deferred sales charge payable on such redemption pursuant to the terms
of the initial issuance of the Shares of such Series or Class (to the
extent consistent with the 1940 Act or regulations or exemptions
thereunder). The redemption price of Shares redeemed under this
subsection (e) shall be paid in cash; PROVIDED, HOWEVER, that if the
Trustees determine, which determination shall be conclusive, that
conditions exist with respect to any Series or Shares, or one or more
Classes of any Series, which make payment wholly in cash unwise or
undesirable, the Trust may make payment wholly or partly in Securities
or other assets belonging to the Portfolio to which such Series or
Class pertains, at the value of such Securities or assets used in such
determination of net asset value. Notwithstanding the foregoing, the
Trust may postpone payment of the redemption price and may suspend the
right of the holders of Shares of any Series
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or Class to require the Trust to redeem such Shares during any period
or at any time when and to the extent permissible under the 1940 Act.
(g) REDEMPTION AT THE OPTION OF THE TRUST. Each Share of any
Portfolio shall be subject to redemption at the option of the Trust at
the redemption price which would be applicable if such Share were then
being redeemed by the Shareholder pursuant to subsection (f) of this
Section 6.2 (i) at any time, if the Trustees determine in their sole
discretion that failure to so redeem may have materially adverse
consequences to the holders of the Shares of the Trust or of any
Portfolio, or (ii) upon such other conditions with respect to
maintenance of Shareholder accounts of a minimum amount as may from
time to time be determined by the Trustees and set forth in the then
current Prospectus of such Portfolio. Upon such redemption the holders
of the Shares so redeemed shall have no further right with respect
thereto other than to receive payment of such redemption price.
(h) NET ASSET VALUE. Subject to the provisions of the two
sentences immediately following, the net asset value per Share of any
Series without Classes, or of any Class of a Series having separate
Classes, at any time shall be the quotient obtained by dividing the
value of the net assets of the Portfolio to which such Series or Class
pertains, at such time (being the current value of the assets belonging
to such Portfolio, or the share of such Class therein, less the then
existing liabilities or such Portfolio, or the share of such Class in
such liabilities) by the total number of Shares of that Series or Class
then outstanding, all determined in accordance with the methods and
procedures, including without limitation those with respect to
rounding, established by the Trustees from time to time. The aggregate
net asset value of the several Classes of a Portfolio having separate
Classes of Shares shall be separately computed, and may vary from one
another. The Trustees shall establish procedures for the allocation of
investment income or capital gains and expenses and liabilities of a
Portfolio having separate Classes of Shares among the several Classes
of such Portfolio, in order to reflect the varying net asset values of,
and the liabilities and expenses attributable to, such Classes. The
Trustees may determine to maintain the net asset value per Share of any
Portfolio at a designated constant dollar amount and in connection
therewith may adopt procedures not inconsistent with the 1940 Act for
the continuing declaration of income attributable to that Portfolio as
dividends payable in additional Shares of that Portfolio at the
designated constant dollar amount and for the handling of any losses
attributable to that Portfolio. Such procedures may provide that in the
event of any loss each Shareholder shall be deemed to have contributed
to the shares of beneficial interest account of that Portfolio his pro
rata portion of the total number of Shares required to be canceled in
order to permit the net asset value per Share of that Portfolio to be
maintained, after reflecting such loss, at the designated constant
dollar amount. Each Shareholder of the Trust shall be deemed to have
expressly agreed, by investing in any Portfolio with respect to which
the Trustees shall have adopted any such procedure, to make the
contribution referred to in the preceding sentence in the event of any
such loss.
(i) TRANSFER. All Shares of the Trust shall be transferable,
but transfers of Shares of a particular Portfolio will be recorded on
the Share transfer records of the Trust applicable to that Portfolio
only at such times as Shareholders shall have the right to require the
Trust to redeem Shares of that Portfolio and at such other times as may
be permitted by the Trustees.
(j) EQUALITY. All Shares of each Series without Classes shall
represent an equal proportionate interest in the assets belonging to
the Portfolio to which such Series pertains (subject to the liabilities
of that Portfolio), and each Share of any such Portfolio shall be equal
to each other Share thereof. All Shares of each Class of Shares of any
Series having separate Classes of Shares shall represent an equal
proportionate interest in the share of such Class in the assets
belonging to the Portfolio to which such Series pertains, subject to a
like share of the liabilities of such Portfolio, adjusted for any
liabilities specifically allocable to that Class, and each Share of any
such Class shall
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be equal to each other Share thereof but the interests represented by
the Shares of the different Classes of a Series having separate Classes
of Shares shall reflect any distinctions among the several Classes of
such Series existing under this Section 6.2 or Section 7.1 hereof, or
under the Certificate of Designation for the Portfolio to which such
Series pertains. The Trustees may from time to time divide or combine
the Shares of any Series, or any Class of any Series, into a greater or
lesser number of Shares of that Series or Class without thereby
changing the proportionate beneficial interest in the assets belonging
to the Portfolio to which such Series pertains, or in any way affecting
the rights of the holders of Shares of any other Series or Class.
(k) RIGHTS OF FRACTIONAL SHARES. Any fractional Share of any
Series or Class of Shares shall carry proportionately all the rights
and obligations of a whole Share of that Series or Class, including
rights and obligations with respect to voting, receipt of dividends and
distributions, redemption of Shares, and liquidation of the Trust or of
the Portfolio to which they pertain.
(1) CONVERSION RIGHTS. Subject to compliance with the
requirements of the 1940 Act, the Trustees shall have the authority to
provide that holders of Shares of any Series shall have the right to
convert said Shares into Shares of one or more other Series in
accordance with such requirements and procedures as the Trustees may
establish.
SECTION 6.3 OWNERSHIP OF SHARES. The ownership of Shares shall be
recorded on the books of the Trust or of a Transfer Agent or similar agent for
the Trust, which books shall be maintained separately for the Shares of each
Series and Class that has been authorized. Certificates evidencing the ownership
of Shares need not be issued except as the Trustees may otherwise determine from
time to time, and the Trustees shall have power to call outstanding Share
certificates and to replace them with book entries. The Trustees may make such
rules as they consider appropriate for the issuance of Share certificates, the
use of facsimile signatures, the transfer of Shares and similar matters. The
record books of the Trust as kept by the Trust or any Transfer Agent or similar
agent, as the case may be, shall be conclusive as to who are the Shareholders
and as to the number of Shares of each Series and/or Class held from time to
time by each such Shareholder.
The holders of Shares of each Portfolio shall upon demand disclose to
the Trustees in writing such information with respect to their direct and
indirect ownership of Shares of such Portfolio as the Trustees deem necessary to
comply with the provisions of the Internal Revenue Code, or to comply with the
requirements of any other authority.
SECTION 6.4 INVESTMENTS IN THE TRUST. The Trustees may accept
investments in any Portfolio of the Trust from such Persons and on such terms
and for such consideration, not inconsistent with the provisions of the 1940
Act, as they from time to time authorize. The Trustees may authorize any
Distributor, Principal Underwriter, Custodian, Transfer Agent or other Person to
accept orders for the purchase of Shares that conform to such authorized terms
and to reject any purchase orders for Shares, whether or not conforming to such
authorized terms.
SECTION 6.5 NO PREEMPTIVE RIGHTS. No Shareholder, by virtue of holding
Shares of any Portfolio, shall have any preemptive or other right to subscribe
to any additional Shares of that Portfolio, or to any shares of any other
Portfolio, or any other Securities issued by the Trust.
SECTION 6.6 STATUS OF SHARES. 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. Shares shall be deemed to be
personal property, giving only the rights provided herein. 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
partners. The death of a Shareholder during the continuance of the Trust shall
not operate to
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terminate the Trust or any Portfolio, 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 only to the rights of said
decedent under this Declaration of Trust.
ARTICLE 7
SHAREHOLDERS VOTING POWERS AND MEETINGS
SECTION 7.1 VOTING POWERS. The Shareholders shall have power to vote
only (i) for the election or removal of Trustees as provided in Sections 4.1(c)
and (e) hereof; (ii) with respect to the approval or termination in accordance
with the 1940 Act of any contract with a Contracting Party as provided in
Section 5.2 hereof as to which Shareholder approval is required by the 1940 Act,
(iii) with respect to any termination or reorganization of the Trust or any
Portfolio to the extent and as provided in Sections 9.1 and 9.2 hereof; (iv)
with respect to any amendment of this Declaration of Trust to the extent and as
provided in Section 9.3 hereof, (v) to the same extent as the stockholders of a
Massachusetts business corporation as to whether or not a court action,
proceeding or claim should or should not be brought or maintained derivatively
or as a class action on behalf of the Trust or any Portfolio, or the
Shareholders of any of them (PROVIDED HOWEVER, that a Shareholder of a
particular Portfolio shall not in any event be entitled to maintain a derivative
or class action on behalf of any other Portfolio or the Shareholders thereof),
and (vi) with respect to such additional matters relating to the Trust as may be
required by the 1940 Act, this Declaration of Trust, the Bylaws 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. If and to the
extent that the Trustees shall determine that such action is required by law or
by this Declaration, they shall cause each matter required or permitted to be
voted upon at a meeting or by written consent of Shareholders to be submitted to
a separate vote of the outstanding Shares of each Portfolio entitled to vote
thereon; PROVIDED, that (i) when expressly required by the 1940 Act or by other
law, actions of Shareholders shall be taken by Single Class Voting of all
outstanding Shares of each Series and Class whose holders are entitled to vote
thereon; and (ii) when the Trustees determine that any matter to be submitted to
a vote of Shareholders affects only the rights or interests of Shareholders of
one or more but not all Series, or one or more but not all Classes of a single
Series (including without limitation any distribution plan pursuant to Rule
12b-1 under the 1940 Act applicable to such Series or Class), then only the
Shareholders of the Series or Classes so affected shall be entitled to vote
thereon. Without limiting the generality of the foregoing, and except as
required by the 1940 Act or other law, the Shareholders of each Class shall have
exclusive voting rights with respect to the provisions of any distribution plan
adopted by the Trustees pursuant to Rule 12b-1 under the 1940 Act (a "Plan")
applicable to such Class.
SECTION 7.2 NUMBER OF VOTES AND MANNER OF VOTING; PROXIES On each
matter submitted to a vote of the Shareholders, each holder of Shares of any
Series shall be entitled to a number of votes equal to the number of Shares of
such Series standing in his name on the books of the Trust. 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 (2) 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.
Until Shares are issued, the Trustees may exercise all rights of Shareholders
and may take any action required by law, this Declaration of Trust or the Bylaws
to be taken by Shareholders.
SECTION 7.3 MEETINGS. Meetings of Shareholders may be called by the
Trustees from time to time for the purpose of taking action upon any matter
requiring the vote or authority of the Shareholders as herein provided, or upon
any other matter deemed by the Trustees to be necessary or desirable. 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, place and purpose of the
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meeting, to each Shareholder at the Shareholder's address as it appears on the
records of the Trust. The Trustees shall promptly call and give notice of a
meeting of Shareholders for the purpose of voting upon removal of any Trustee of
the Trust when requested to do so in writing by Shareholders holding not less
than ten percent (10%) of the Shares then outstanding. If the Trustees shall
fail to call or give notice of any meeting of Shareholders for a period of
thirty (30) days after written application by Shareholders holding at least ten
percent (10%) of the Shares then outstanding requesting that a meeting be called
for any other purpose requiring action by the Shareholders as provided herein or
in the Bylaws, then Shareholders holding at least ten percent (10%) of the
Shares then outstanding may call and give notice of such meeting, and thereupon
the meeting shall be held in the manner provided for herein in case of call
thereof by the Trustees.
SECTION 7.4 RECORD DATES. For the purpose of determining the
Shareholders who are entitled to vote or act at any meeting or any adjournment
thereof, or who are entitled to participate in any dividend or distribution, or
for the purpose of any other action, the Trustees may from time to time close
the transfer books for such period, not exceeding thirty (30) days (except at or
in connection with the termination of the Trust), as the Trustees may determine,
or without closing the transfer books the Trustees may fix a date and time not
more than sixty (60) days prior to the date of any meeting of Shareholders or
other action as the date and time of record for the determination of
Shareholders entitled to vote at such meeting or any adjournment thereof or to
be treated as Shareholders of record for purposes of such other action, and any
Shareholder who was a Shareholder at the date and time so fixed shall be
entitled to vote at such meeting or any adjournment thereof or to be treated as
a Shareholder of record for purposes of such other action, even though he has
since that date and time disposed of his Shares, and no Shareholder becoming
such after that date and time shall be so entitled to vote at such meeting or
any adjournment thereof or to be treated as a Shareholder of record for purposes
of such other action.
SECTION 7.5 QUORUM AND REQUIRED VOTE. A majority of the Shares entitled
to vote on a matter shall be a quorum for the transaction of business with
respect to such matter at a Shareholders' meeting, but any lesser number shall
be sufficient for adjournments. Any adjourned session or sessions may be held
within a reasonable time after the date set for the original meeting without the
necessity of further notice. A Majority Shareholder Vote at a meeting of which a
quorum is present shall decide any question, except when a different vote is
required or permitted by any provision of the 1940 Act or other applicable law
or by this Declaration of Trust or the By-Laws, or when the Trustees shall in
their discretion require a larger vote or the vote of a majority or larger
fraction of the Shares of one or more particular Series or Class.
SECTION 7.6 ACTION BY WRITTEN CONSENT. Subject to the provisions of the
1940 Act and other applicable law, any action taken by Shareholders may be taken
without a meeting if a majority of Shareholders entitled to vote on the matter
(or such larger proportion thereof or of the Shares of any particular Series as
shall be required by the 1940 Act or by any express provision of this
Declaration of Trust or the Bylaws or as shall be permitted by the Trustees)
consent to the action in writing and if the writings in which such consent is
given are filed with the records of the meetings of Shareholders, to the same
extent and for the same period as proxies given in connection with a
Shareholders' meeting. Such consent shall be treated for all purposes as a vote
taken at a meeting of Shareholders.
SECTION 7.7 INSPECTION OF RECORDS. The records of the Trust shall be
open to inspection by Shareholders to the same extent as is permitted
stockholders of a Massachusetts business corporation under the Massachusetts
Business Corporation Law.
SECTION 7.8 ADDITIONAL PROVISIONS. The Bylaws may include further
provisions for Shareholders' votes and meetings and related matters not
inconsistent with the provisions hereof.
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ARTICLE 8
LIMITATION OF LIABILITY; INDEMNIFICATION
SECTION 8.1 TRUSTEES, SHAREHOLDERS, ETC. NOT PERSONALLY LIABLE; NOTICE.
The Trustees and officers of the Trust, in incurring any debts, liabilities or
obligations, or in taking or omitting any other actions for or in connection
with the Trust, are or shall be deemed to be acting as Trustees or officers of
the Trust and not in their own capacities. No Shareholder shall be subject to
any personal liability whatsoever in tort, contract or otherwise to any other
Person or Persons in connection with the assets or the affairs of the Trust or
of any Portfolio, and subject to Section 8.4 hereof, no Trustee, officer,
employee or agent of the Trust shall be subject to any personal liability
whatsoever in tort, contract, or otherwise, to any other Person or Persons in
connection with the assets or affairs of the Trust or of any Portfolio, save
only that arising from his own willful misfeasance, bad faith, gross negligence
or reckless disregard of the duties involved in the conduct of his office or the
discharge of his functions. The Trust (or if the matter relates only to a
particular Portfolio, that Portfolio) shall be solely liable for any and all
debts, claims, demands, judgments, decrees, liabilities or obligations of any
and every kind, against or with respect to the Trust or such Portfolio in tort,
contract or otherwise in connection with the assets or the affairs of the Trust
or such Portfolio, and all Persons dealing with the Trust or any Portfolio shall
be deemed to have agreed that resort shall be had solely to the Trust Property
of the Trust or the Portfolio Assets of such Portfolio, as the case may be, for
the payment or performance thereof.
The Trustees shall use their best efforts to ensure that every note,
bond, contract, instrument, certificate or undertaking made or issued by the
Trustees or by any officers or officer shall give notice that this Declaration
of Trust is on file with the Secretary of The Commonwealth of Massachusetts and
shall recite to the effect that the same was executed or made by or on behalf of
the Trust or by them as Trustees or Trustee or as officers or officer, and not
individually, and that the obligations of such instrument are not binding upon
any of them or the Shareholders individually but are binding only upon the
assets and property of the Trust, or the particular Portfolio in question, as
the case may be, but the omission thereof shall not operate to bind any Trustees
or Trustee or officers or officer or Shareholders or Shareholder individually,
or to subject the Portfolio Assets of any Portfolio to the obligations of any
other Portfolio.
SECTION 8.2 TRUSTEES' 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. Subject to Section 8.4 hereof, a
Trustee shall be liable for his own willful misfeasance, bad faith, gross
negligence or reckless disregard of the duties involved in the conduct of the
office of Trustee, and for nothing else, and shall not be liable for errors of
judgment or mistakes of fact or law. Subject to the foregoing, (i) the Trustees
shall not be responsible or liable in any event for any neglect or wrongdoing of
any officer, agent, employee, consultant, Investment Adviser, Administrator,
Distributor or Principal Underwriter, Custodian or Transfer Agent, Dividend
Disbursing Agent, Shareholder Servicing Agent or Accounting Agent of the Trust,
nor shall any Trustee be responsible for the act or omission of any other
Trustee, (ii) the Trustees may take advice of counsel or other experts with
respect to the meaning and operation of this Declaration of Trust and their
duties as Trustees, and shall be under no liability for any act or omission m
accordance with such advice or for failing to follow such advice; and (iii) in
discharging their duties, the Trustees, when acting in good faith, shall be
entitled to rely upon the books of account of the Trust and upon written reports
made to the Trustees by any officer appointed by them, any independent public
accountant, and (with respect to the subject matter of the contract involved)
any officer, partner or responsible employee of a Contracting Party appointed by
the Trustees pursuant to Section 5.2 hereof. The Trustees as such shall not be
required to give any bond or surety or any other security for the performance of
their duties.
SECTION 8.3 INDEMNIFICATION OF SHAREHOLDERS. If any Shareholder (or
former Shareholder) of the Trust shall be charged or held to be personally
liable for any obligation or liability of the Trust solely by
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reason of being or having been a Shareholder and not because of such
Shareholder's acts or omissions or for some other reason, the Trust (upon proper
and timely request by the Shareholder) shall assume the defense against such
charge and satisfy any judgment thereon, and the Shareholder or former
Shareholder (or the heirs, executors, administrators or other legal
representatives thereof, or in the case of a corporation or other entity, its
corporate or other general successor) shall be entitled (but solely out of the
assets of the Portfolio of which such Shareholder or former Shareholder is or
was the holder of Shares) to be held harmless from and indemnified against all
loss and expense arising from such liability.
SECTION 8.4 INDEMNIFICATION OF TRUSTEES, OFFICERS. ETC. Subject to the
limitations set forth hereinafter in this Section 8.4, the Trust shall indemnify
(from the assets of the Portfolio or Portfolios to which the conduct in question
relates) each of its Trustees and officers (including Persons who serve at the
Trust's request as directors, officers or trustees of another organization in
which the Trust has any interest as a shareholder, creditor or otherwise
[hereinafter, together with such Person's heirs, executors, administrators or
personal representative, referred to as a "COVERED PERSON")) against all
liabilities, including but not limited to amounts paid in satisfaction of
judgments, in compromise or as fines and penalties, and expenses, including
reasonable accountants' and counsel fees, incurred by any Covered Person in
connection with the defense or disposition of any action, suit or other
proceeding, whether civil or criminal, before any court or administrative or
legislative body, in which such Covered Person may be or may have been involved
as a party or otherwise or with which such Covered Person may be or may have
been threatened, while in office or thereafter, by reason of being or having
been such a Trustee or officer, director or trustee, except with respect to any
matter as to which it has been determined that such Covered Person (i) did not
act in good faith in the reasonable belief that such Covered Person's action was
in or not opposed to the best interests of the Trust or (ii) had acted with
willful misfeasance, bad faith, gross negligence or reckless disregard of the
duties involved in the conduct of such Covered Person's office (either and both
of the conduct described in clauses (i) and (ii) of this sentence being referred
to hereafter as "DISABLING CONDUCT") A determination that the Covered Person is
entitled to indemnification may be made by (i) a final decision on the merits by
a court or other body before whom the proceeding was brought that the Covered
Person to be indemnified was not liable by reason of Disabling Conduct, (ii)
dismissal of a court action or an administrative proceeding against a Covered
Person for insufficiency of evidence of Disabling Conduct, or (iii) a reasonable
determination, based upon a review of the facts, that the indemnitee was not
liable by reason of Disabling Conduct by (a) a vote of a majority of a quorum of
Trustees who are neither "interested persons" of the Trust as defined in Section
2(a)( 19) of the 1940 Act nor parties to the proceeding, or (b) an independent
legal counsel in a written opinion. Expenses including accountants' and counsel
fees so incurred by any such Covered Person (but excluding amounts paid in
satisfaction of judgments, in compromise or as fines or penalties), may be paid
from time to time by the Portfolio or Portfolios to which the conduct in
question related in advance of the final disposition of any such action, suit or
proceeding, PROVIDED, that the Covered Person shall have undertaken to repay the
amounts so paid to such Portfolio or Portfolios if it is ultimately determined
that indemnification of such expenses is not authorized under this Article 8 and
(i) the Covered Person shall have provided security for such undertaking, (ii)
the Trust shall be insured against losses arising by reason of any lawful
advances, or (iii) a majority of a quorum of the disinterested Trustees, or an
independent legal counsel in a written opinion, shall have determined, based on
a review of readily available facts (as opposed to a full trial-type inquiry),
that there is reason to believe that the Covered Person ultimately will be found
entitled to indemnification.
SECTION 8.5 COMPROMISE PAYMENT. As to any matter disposed of by a
compromise payment by any such Covered Person referred to in Section 8.4 hereof.
pursuant to a consent decree or otherwise, no such indemnification either for
said payment or for any other expenses shall be provided unless such
indemnification shall be approved (i) by a majority of a quorum of the
disinterested Trustees or (ii) by an independent legal counsel in a written
opinion. Approval by the Trustees pursuant to clause (i) or by independent legal
counsel pursuant to clause (ii) shall not prevent the recovery from any Covered
Person of any amount paid to such Covered Person in accordance with either of
such clauses as indemnification if such Covered Person is subsequently
adjudicated by a court of competent jurisdiction not to have acted in good faith
in the rea-
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sonable belief that such Covered Person's action was in or not opposed to the
best interests of the Trust or to have been liable to the Trust or its
Shareholders by reason of willful misfeasance, bad faith, gross negligence or
reckless disregard of the duties involved in the conduct of such Covered
Person's office.
SECTION 8.6 INDEMNIFICATION NOT EXCLUSIVE, ETC. The right of
indemnification provided by this Article 8 shall not be exclusive of or affect
any other rights to which any such Covered Person may be entitled. As used in
this Article 8, a 'DISINTERESTED" Person is one against whom none of the
actions, suits or other proceedings in question, and no other action, suit or
other proceeding on the same or similar grounds is then or has been pending or
threatened. Nothing contained in this Article 8 shall affect any rights to
indemnification to which personnel of the Trust, other than Trustees and
officers, and other Persons may be entitled by contract or otherwise under law,
nor the power of the Trust to purchase and maintain liability insurance on
behalf of any such Person.
SECTION 8.7 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.
ARTICLE 9
DURATION; REORGANIZATION; AMENDMENTS
SECTION 9.1 DURATION AND TERMINATION OF TRUST. Unless terminated as
provided herein, the Trust shall continue without limitation of time and,
without limiting the generality of the foregoing, no change, alteration or
modification with respect to any Portfolio or Series of Shares shall operate to
terminate the Trust. The Trust may be terminated at any time by a Majority of
the Trustees, subject to the favorable vote of the holders of not less than a
majority of the Shares outstanding and entitled to vote of each Portfolio of the
Trust, or by an instrument or instruments in writing without a meeting,
consented to by the holders of not less than a majority of such Shares, or by
such greater or different vote of Shareholders of any Series as may be
established by the Certificate of Designation by which such Series was
authorized. Upon termination, after paying or otherwise providing for all
charges, taxes, expenses and liabilities, 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 to
distributable form in cash, Securities or other property, or any combination
thereof, and distribute the proceeds to the Shareholders, in conformity with the
provisions of Section 6.2(d) hereof.
SECTION 9.2 REORGANIZATION. The Trustees may sell, convey and transfer
all or substantially all of the assets of the Trust, or the assets belonging to
any one or more Portfolios, to another trust, partnership, association or
corporation organized under the laws of any state of the United States, or may
transfer such assets to another Portfolio of the Trust, in exchange for cash,
Shares or other Securities (including, in the case of a transfer to another
Portfolio of the Trust Shares of such other Portfolio), or to the extent
permitted by law then in effect may merge or consolidate the Trust or any
Portfolio with any other Trust or any corporation, partnership, or association
organized under the laws of any state of the United States, all upon such terms
and conditions and for such consideration when and as authorized by vote or
written consent of a Majority of the Trustees and approved by the affirmative
vote of the holders of not less than a majority of the Shares outstanding and
entitled to vote of each Portfolio whose assets are affected by such
transaction, or by an instrument or instruments in writing without a meeting,
consented to by the holders of not less than a majority of such Shares, and/or
by such other vote of any Series as may be established by the Certificate of
Designation with respect to such Series. Following such transfer, the Trustees
shall distribute the cash, Shares or other Securities or other consideration
received in such transaction (giving due effect to the assets belonging to and
indebtedness of, and any other differences among, the various Portfolios of
which the assets have
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so been transferred) among the Shareholders of the Portfolio of which the assets
have been so transferred; and if all of the assets of the Trust have been so
transferred, the Trust shall be terminated Nothing in this Section 9.2 shall be
construed as requiring approval of Shareholders for the Trustees to organize or
assist in organizing one or more corporations, trusts, partnerships,
associations or other organizations, and to sell, convey or transfer less than
substantially all of the Trust Property or the assets belonging to any Portfolio
to such organizations or entities.
SECTION 9.3 AMENDMENTS; ETC. All rights granted to the Shareholders
under this Declaration of Trust are granted subject to the reservation of the
right to amend this Declaration of Trust as herein provided, except that no
amendment shall repeal the limitations on personal liability of any Shareholder
or Trustee or the prohibition of assessment upon the Shareholders (otherwise
than as permitted under Section 6.2(h)) without the express consent of each
Shareholder or Trustee involved. Subject to the foregoing, the provisions of
this Declaration of Trust (whether or not related to the rights of Shareholders)
may be amended at any time, so long as such amendment does not adversely affect
the rights of any Shareholder with respect to which such amendment is or
purports to be applicable and so long as such amendment is not in contravention
of applicable law, including the 1940 Act, by an instrument in writing signed by
a Majority of the Trustees (or by an officer of the Trust pursuant to the vote
of a Majority of the Trustees). Any amendment to this Declaration of Trust that
adversely affects the rights of all Shareholders may be adopted at any time by
an instrument in writing signed by a Majority of the Trustees (or by an officer
of the Trust pursuant to a vote of a Majority of the Trustees) when authorized
to do so by the vote in accordance with Section 7.1 hereof of Shareholders
holding a majority of all the Shares outstanding and entitled to vote, without
regard to Series, or if said amendment adversely affects the rights of the
Shareholders of less than all of the Series, or of less than all of the Classes
of Shares of any Series, by the vote of the holders of a majority of all the
Shares entitled to vote of each Series or Class so affected. Subject to the
foregoing, any such amendment shall be effective when the instrument containing
the terms thereof and a certificate (which may be a part of such instrument) to
the effect that such amendment has been duly adopted, and setting forth the
circumstances thereof, shall have been executed and acknowledged by a Trustee or
officer of the Trust. Such certificate shall be filed as provided in Section 9.4
hereof, but such filing shall not be a prerequisite to the effectiveness of such
amendment.
SECTION 9.4 FILING OF COPIES OF DECLARATION AND AMENDMENTS. The
original or a copy of this Declaration and of each amendment hereto (including
each Certificate of Designation and Certificate of Termination), shall be kept
at the office of the Trust where it may be inspected by any Shareholder, and one
copy of each such instrument shall be filed with the Secretary of The
Commonwealth of Massachusetts, as well as with any other governmental office
where such filing may from time to time be required by the laws of
Massachusetts, but such filing shall not be a prerequisite to the effectiveness
of this Declaration or any such amendment. A restated Declaration, integrating
into a single instrument all of the provisions of this Declaration which are
then in effect and operative, may be executed from time to time by a Majority of
the Trustees and shall, upon filing with the Secretary of The Commonwealth of
Massachusetts, be conclusive evidence of all amendments contained therein and
may thereafter be referred to in lieu of the original Declaration and the
various amendments thereto.
ARTICLE 10
MISCELLANEOUS
SECTION 10.1 GOVERNING LAW. This Declaration of Trust is executed and
delivered in The Commonwealth of Massachusetts and with reference to the laws
thereof, and the rights of all parties and the construction and effect of every
provision hereof shall be subject to and construed according to the laws of said
Commonwealth.
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SECTION 10.2 COUNTERPARTS. This Declaration of Trust and any amendment
thereto may be simultaneously executed in several counterparts, each of which so
executed shall be deemed to be an original, and such counterparts, together,
shall constitute but one and the same instrument, which shall be sufficiently
evidenced by any such original counterpart.
SECTION 10.3 RELIANCE BY THIRD PARTIES. Any certificate executed by an
individual who, according to the records in the office of the Secretary of The
Commonwealth of Massachusetts appears to be a Trustee hereunder, certifying to:
(a) the number or identity of Trustees or Shareholders, (b) the due
authorization of the execution of any instrument or writing, (c) the form of any
vote passed as a meeting of Trustees or Shareholders, (d) the fact that the
number of Trustees or Shareholders present at any meeting or executing any
written instrument satisfies the requirements of this Declaration of Trust, (e)
the form of any Bylaw adopted, or the identity of any officers elected, by the
Trustees, or (I) the existence or non-existence of any fact or facts which in
any manner relate to the affairs of the Trust, shall be conclusive evidence as
to the matters so certified in favor of any Person dealing with the Trustees, or
any of them, and the successors of such Person.
SECTION 10.4 REFERENCES; HEADINGS. The masculine gender shall include
the feminine and neuter genders. Headings are placed herein for convenience of
reference only and shall not be taken as a part of this Declaration or control
or affect the meaning, construction or effect hereof.
SECTION 10.5 USE OF THE NAME "SPECTRA". Fred Alger Management Co., Inc.
("Alger") has consented to the use by the Trust of the identifying name
"Spectra," which is a property right of Alger. The Trust will only use the name
'Spectra" as a component of its name and for no other purpose, and will not
purport to grant to any third party the right to use the name "Spectra" for any
purpose. Alger or any corporate affiliate of Alger may use or grant to others
the right to use the name "Spectra," as all or a portion of a corporate or
business name or for any commercial purpose, including a grant of such right to
any other investment company. At the request of Alger, the Trust will take such
action as may be required to provide its consent to the use of such name by
Alger, or any corporate affiliate of Alger, or by any Person to whom Alger or an
affiliate of Alger shall have granted the right to the use of the name
"Spectra." Upon the termination of any investment advisory or management
agreement into which Alger and the Trust may enter, the Trust shall, upon
request by Alger, cease to use the name "Spectra" as a component of its name,
and shall not use such name or initials as a part of its name or for any other
commercial purpose. and shall cause its officers and Trustees to take any and
all actions which Alger may request to effect the foregoing and to reconvey to
Alger or such corporate affiliate any and all rights to such name.
IN WITNESS WHEREOF, the undersigned, constituting a Majority of the
Trustees, have hereunto set their hands and the seal of the Trust, all as of the
18 day of February, 1997.
/s/ DAVID D. ALGER
---------------------------------- ---------------------------
FRED M. ALGER DAVID D. ALGER
/s/ NATHAN E. SAINT-AMAND /s/ STEPHEN E. O'NEIL
---------------------------------- ---------------------------
NATHAN E. SAINT-AMAND STEPHEN E. O'NEIL
/s/ ARTHUR M. DUBOW /s/ JOHN T. SARGENT
---------------------------------- ---------------------------
ARTHUR M. DUBOW JOHN T. SARGENT
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ACKNOWLEDGMENT
STATE OF New York )
:ss.
COUNTY OF New York)
2/18/1997
Then personally appeared the above-named Trustees and acknowledged the
foregoing instrument to be his/her free act and deed.
Before me,
/s/ Dolores M. Costa
---------------------------
Notary Public
My commission expires 8/15/98
[NOTARIAL SEAL] DOLORES M. COSTA
NOTARY PUBLIC, State of New York
No. 31-4941104
Qualified in New York County
Commission Expires 8/15/98
Dates Referenced Herein
| Referenced-On Page |
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| This ‘485BPOS’ Filing | | Date | | First | | Last | | | Other Filings |
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| |  |
| Filed on / Effective on: | | 2/27/98 | | | | | | | None on these Dates |
| | 2/18/97 | | 1 |
| | 7/5/95 | | 6 |
| | 6/27/95 | | 8 |
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