SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934
Filed by the Registrant /X/
Filed by a Party other than the Registrant / /
Check the appropriate box:
/X/ Preliminary Proxy Statement
/ / Confidential, for Use of the Commission Only (as permitted by Rule
14a-6(e)(2))
/ / Definitive Proxy Statement
/ / Definitive Additional Materials
/ / Soliciting Material Pursuant to Section 240.14a-11(c) or Section
240.14a-12
Neuberger Berman Equity Trust
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(Name of Registrant as Specified In Its Charter)
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(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
/X/ No fee required.
/ / Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and
0-11.
(1) Title of each class of securities to which transaction
applies:
(2) Aggregate number of securities to which transaction applies:
(3) Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule 0-11 (Set forth the
amount on which the filing fee is calculated and state how it
was determined):
(4) Proposed maximum aggregate value of transaction:
(5) Total fee paid:
/ / Fee paid previously with preliminary materials.
/ / Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee
was paid previously. Identify the previous filing by registration
statement number, or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
(2) Form, Schedule or Registration Statement No.:
(3) Filing Party:
(4) Date Filed:
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NEUBERGER BERMAN NYCDC SOCIALLY RESPONSIVE TRUST
(a series of Neuberger Berman Equity Trust)
August __, 1999
To the board of trustees of the Deferred Compensation Plan of the City of New
York and Related Agencies and Instrumentalities:
The attached proxy materials seek your approval to convert Neuberger
Berman NYCDC Socially Responsive Trust (the "Fund"), a series of Neuberger
Berman Equity Trust ("Equity Trust"), to a series of Neuberger Berman Equity
Series ("Equity Series"), and to ratify the appointment of
PricewaterhouseCoopers LLP as independent accountants for the Fund.
THE BOARD OF TRUSTEES OF EQUITY TRUST UNANIMOUSLY RECOMMENDS A VOTE FOR
BOTH PROPOSALS. The conversion of the Fund to a series of Equity Series is part
of a proposed realignment of several Neuberger Berman funds that invest in
Neuberger Berman Socially Responsive Portfolio (collectively, the "Socially
Responsive Series"). The purpose of this realignment is to avoid confusion and
difficulty in the administration of the Socially Responsive Series. The attached
proxy materials provide more information about the proposed conversion.
YOUR VOTE IS IMPORTANT. After reviewing the attached materials, please
complete, sign and date your proxy card and mail it in the enclosed return
envelope promptly. As an alternative to using the paper proxy card to vote, you
may vote by telephone, through the Internet or in person.
Very truly yours,
Lawrence Zicklin
President
Neuberger Berman Equity Trust
<PAGE>
NEUBERGER BERMAN NYCDC SOCIALLY RESPONSIVE TRUST
(a series of Neuberger Berman Equity Trust)
NOTICE OF
SPECIAL MEETING OF SHAREHOLDERS
October 15, 1999
To the board of trustees of the Deferred Compensation Plan of the City of New
York and Related Agencies and Instrumentalities (the "Plan"):
A special meeting of the shareholders of Neuberger Berman NYCDC
Socially Responsive Trust ("Fund"), a series of Neuberger Berman Equity Trust
("Equity Trust"), will be held on October 15, 1999, at 10:00 a.m., Eastern time,
at the offices of Neuberger Berman, LLC, 605 Third Avenue, New York, NY
10158-3698 for the following purposes:
1) To approve an Agreement and Plan of Realignment and Termination
providing for the conversion of the Fund from a series of
Neuberger Berman Equity Trust to a separate series of Neuberger
Berman Equity Series;
2) To ratify the selection of PricewaterhouseCoopers LLP as the
independent accountants for the Fund; and
3) To consider and vote upon such other matters as may properly come
before the meeting or any adjournments thereof.
You are entitled to vote at the meeting and any adjournment thereof if you owned
shares of the Fund through the Plan at the close of business on August 2, 1999.
IF YOU ATTEND THE MEETING, YOU MAY VOTE YOUR SHARES IN PERSON. IF YOU DO NOT
EXPECT TO ATTEND THE MEETING, PLEASE COMPLETE, DATE, SIGN AND RETURN THE
ENCLOSED PROXY CARD IN THE ENCLOSED POSTAGE-PAID ENVELOPE. YOU MAY ALSO VOTE BY
TELEPHONE OR THROUGH THE INTERNET. HOWEVER, ANY PROPOSAL SUBMITTED TO A VOTE AT
THE MEETING BY ANYONE OTHER THAN THE OFFICERS OR TRUSTEES OF EQUITY TRUST MAY BE
VOTED ONLY IN PERSON OR BY WRITTEN PROXY.
By order of the Board of Trustees,
Claudia A. Brandon
Secretary
August ___, 1999
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New York, NY
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YOUR VOTE IS IMPORTANT
Please indicate your voting instructions on the enclosed proxy card,
sign and date the card, and return it in the envelope provided. IF YOU SIGN,
DATE AND RETURN THE PROXY CARD BUT GIVE NO VOTING INSTRUCTIONS, YOUR SHARES WILL
BE VOTED "FOR" THE PROPOSALS DESCRIBED ABOVE. In order to avoid the additional
expense of further solicitation, we ask your cooperation in mailing your proxy
card promptly. As an alternative to using the paper proxy card to vote, you may
vote by telephone, through the Internet or in person. To vote by telephone,
please call the toll-free number listed on the enclosed proxy card. To vote in
this manner, you will need the 12-digit "control" number(s) that appear on your
proxy card(s). To vote via the Internet, please access http:www.proxyvote.com on
the World Wide Web. However, any proposal submitted to a vote at the meeting by
anyone other than the officers or Trustees of Equity Trust may be voted only in
person or by written proxy.
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<PAGE>
NEUBERGER BERMAN NYCDC SOCIALLY RESPONSIVE TRUST
(a series of Neuberger Berman Equity Trust)
605 Third Avenue
New York, NY 10158-0180
(212) 476-8800
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PROXY STATEMENT
Special Meeting of Shareholders
October 15, 1999
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VOTING INFORMATION
This Proxy Statement is being furnished to the Board of Trustees of the
Deferred Compensation Plan of the City of New York and Related Agencies and
Instrumentalities (the "Plan"), on behalf of the Plan participants who, through
the Plan, indirectly are shareholders of Neuberger Berman NYCDC Socially
Responsive Trust ("Fund"), a series of Neuberger Berman Equity Trust ("Equity
Trust"). The Board of Trustees of Equity Trust (the "Board") is soliciting
proxies for use at a special meeting of shareholders to be held on October 15,
1999 (the "Meeting"), and at any adjournment of the Meeting. This Proxy
Statement is first being mailed to the Plan's trustees on or about August ___,
1999.
One-third of the Fund's shares outstanding and entitled to vote on
August 2, 1999 ("Record Date"), represented in person or by proxy, shall
constitute a quorum and must be present for the transaction of business at the
Meeting. If a quorum is not present at the Meeting, or a quorum is present but
sufficient votes to approve one or more of the proposals set forth in this Proxy
Statement are not received, or for any other reason, the persons named as
proxies may propose one or more adjournments of the Meeting to permit further
solicitation of proxies. Any such adjournment will require the affirmative vote
of a majority of those shares represented at the Meeting in person or by proxy.
The persons named as proxies will vote those proxies that they are entitled to
vote FOR a proposal in favor of such an adjournment and will vote those proxies
required to be voted AGAINST a proposal against such adjournment. A vote may be
taken on one of the proposals in this Proxy Statement prior to any such
adjournment if sufficient votes have been received with respect to such proposal
and it is otherwise appropriate.
The individuals named as proxies on the enclosed proxy card will vote
in accordance with your directions as indicated on that proxy card, if it is
received properly executed by you or by your duly appointed agent or
attorney-in-fact. If you sign, date and return the proxy card, but give no
<PAGE>
voting instructions, your shares will be voted in favor of each of the proposals
described in this proxy statement. Proxies that reflect abstentions as to which
instructions have not been received from the persons entitled to vote will be
counted as shares that are present and entitled to vote for purposes of
determining the presence of a quorum. Abstentions will not be counted, however,
as votes cast for purposes of determining whether sufficient votes have been
received to approve a Proposal. With respect to each Proposal, abstentions have
the effect of a negative vote on the Proposal or any adjournment.
A proxy may be revoked at any time prior to its exercise by attending
the Meeting and voting the shares in person, or by submitting a letter of
revocation or a later-dated proxy to Equity Trust. Any letter of revocation or
later-dated proxy must be received by the Trust prior to the Meeting. Proxies
voted by telephone or through the Internet may be revoked at any time before
they are voted at the meeting in the same manner that proxies voted by mail may
be revoked.
As of the Record Date, the Fund had _______ shares of beneficial
interest outstanding. The solicitation of proxies, the cost of which will be
borne by Neuberger Berman Management, Inc. ("NBMI"), the Fund's investment
manager and administrator, will be made primarily by mail but also may be made
by telephone, electronic transmission, or personal meetings with officers or
employees of NBMI, an affiliate of NBMI, or other representatives of the Fund,
none of whom will receive any compensation for these activities from the Fund.
Because there is a single shareholder of record, any expenses paid to an outside
proxy solicitor will be minimal.
PLEASE NOTE THAT WHILE PROXIES MAY BE VOTED BY TELEPHONE OR THROUGH THE
INTERNET WITH RESPECT TO PROPOSALS 1 AND 2, ANY PROPOSAL SUBMITTED TO A VOTE AT
THE MEETING BY ANYONE OTHER THAN THE OFFICERS OR TRUSTEES OF EQUITY TRUST MAY BE
VOTED ONLY IN PERSON OR BY WRITTEN PROXY.
As of August 2, 1999, the Plan, 40 Rector Street, 3rd Floor, New York,
New York 10006 owned [99.99%] of the outstanding shares of the Fund.
[Trustees and officers of Equity Trust own in the aggregate less than
1% of the shares of the Fund.]
COPIES OF THE FUND'S MOST RECENT ANNUAL AND SEMI-ANNUAL REPORTS,
INCLUDING FINANCIAL STATEMENTS, HAVE PREVIOUSLY BEEN DELIVERED TO SHAREHOLDERS.
SHAREHOLDERS MAY REQUEST COPIES OF THESE REPORTS, WITHOUT CHARGE, BY WRITING TO
NEUBERGER BERMAN MANAGEMENT INC., 605 THIRD AVENUE, NEW YORK, NY 10158-0180 OR
BY CALLING THE PLAN AT (212) 306-7760 OR NBMI AT (800) 877-9700.
REQUIRED VOTE. Approval of Proposal 1 requires the affirmative vote of
a "majority of the outstanding voting securities" of the Fund, as defined in the
Investment Company Act of 1940, as amended ("1940 Act"). This means that
Proposal 1 must be approved by the lesser of (i) 67% of the Fund's shares
present at a Meeting of shareholders if the owners of more than 50% of the
Fund's shares then outstanding are present in person or by proxy or (ii) more
than 50% of the Fund's outstanding shares. Approval of Proposal 2 requires the
affirmative vote of a majority of the votes present and voting at the Meeting,
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<PAGE>
provided a quorum is present. Each outstanding full share of the Fund is
entitled to one vote, and each outstanding fractional share thereof is entitled
to a proportionate fractional share of one vote. If either Proposal is not
approved by the requisite vote, the persons named as proxies may propose one or
more adjournments of the Meeting to permit further solicitation of proxies.
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PROPOSAL 1 - APPROVAL OF AN AGREEMENT AND PLAN OF REALIGNMENT AND
TERMINATION ("REALIGNMENT PLAN") PROVIDING FOR THE REALIGNMENT OF THE
FUND FROM A SERIES OF EQUITY TRUST TO A SERIES OF NEUBERGER BERMAN
EQUITY SERIES ("EQUITY SERIES")
The Fund is presently organized as a series of Equity Trust. The Board
of Equity Trust has approved the Realignment Plan in the form attached to this
Proxy Statement as Appendix A. The Realignment Plan provides for the conversion
of the Fund from a series of Equity Trust, a Delaware business trust, to a newly
established series (the "New Series") of Equity Series, also a Delaware business
trust (the "Realignment"). FROM AN INVESTOR'S PERSPECTIVE, THE PROPOSED CHANGE
WILL HAVE NO MATERIAL EFFECT ON THE SHAREHOLDERS, OFFICERS, OPERATIONS OR
MANAGEMENT OF THE FUND. The Realignment will make administration of the Fund
easier.
The Fund invests all of its net investable assets in Neuberger Berman
Socially Responsive Portfolio (the "Portfolio"), a series of Equity Managers
Trust, a New York common law trust organized as an open-end management
investment company. The Portfolio invests in securities in accordance with an
investment objective, policies, and limitations identical to those of the Fund.
NBMI serves as the investment manager and Neuberger Berman, LLC ("Neuberger
Berman") serves as sub-adviser to the Portfolio.
The New Series, which has not yet commenced business operations and
will be established for the purpose of effecting the Realignment, will carry on
the business of the Fund following the Realignment and will have investment
objectives, policies, and limitations identical to those of the Fund. Since both
Equity Trust and Equity Series are Delaware business trusts organized under
identical Trust Instruments, the rights of the security holders of the Fund
under state law and its governing documents remain unchanged after the
Realignment. Shareholder voting rights under both Equity Trust and Equity Series
are currently based on the number of shares owned. The same individuals serve as
trustees of both Equity Trust and Equity Series.
INVESTORS WILL CONTINUE TO BE ABLE TO BUY, OWN, AND SELL FUND SHARES
ONLY THROUGH THE PLAN.
NBMI will be responsible for providing the New Series with various
administrative services, subject to the supervision of the Board of Trustees of
Equity Series (the "Equity Series Board"), under an Administration Agreement
substantially identical to the contract in effect between NBMI and Equity Trust
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<PAGE>
immediately prior to the Realignment. Following the Realignment, NBMI will act
as distributor for the New Series without charge under a Distribution Agreement
substantially identical to the contract in effect between NBMI and Equity Trust
immediately prior to the Realignment. NBMI will continue to act as investment
manager to the Portfolio pursuant to the existing agreement between NBMI and the
Portfolio.
The proposal to present the Realignment Plan was approved by the Board,
including a majority of its trustees who are not "interested persons," as that
term is defined in the 1940 Act ("Independent Trustees"), on July 29, 1999. The
Board recommends that the Plan trustees vote FOR the approval of the Realignment
Plan. Such a vote encompasses approval of both (i) the conversion of the Fund to
a series of Equity Series; and (ii) a temporary waiver of certain investment
limitations of the Fund to permit the Realignment (see "Temporary Waiver of
Investment Restrictions" below). If the Plan trustees do not approve the
Realignment Plan set forth herein, the Fund will continue to operate as a series
of Equity Trust.
REASONS FOR THE PROPOSED REALIGNMENT
The Board unanimously recommends conversion of the Fund to a series of
Equity Series. Moving the Fund from Equity Trust to Equity Series will increase
the efficiency of Fund administration. FROM AN INVESTOR'S PERSPECTIVE, THE
PROPOSED CHANGE WILL HAVE NO MATERIAL EFFECT ON THE SHAREHOLDERS, OFFICERS,
OPERATION OR MANAGEMENT OF THE FUND.
Most mutual funds today are organized as "series" within a larger trust
or corporation. Each series is operated in most respects as a separate mutual
fund, with its own investment policies, portfolio managers, and shareholders.
The Fund, for example, is part of a trust called Neuberger Berman Equity Trust.
Also involved in the proposed Realignment, besides the Fund, are two other
mutual funds that are series of different trusts, Neuberger Berman Socially
Responsive Trust and Neuberger Berman Socially Responsive Assets (collectively,
with the Fund, the "Socially Responsive Series").
NBMI has established a number of trusts. Shares of the series of these
trusts are made available to different types of investors through different
programs. All of the series of a particular trust, except the Socially
Responsive Series, are organized and operated in a way that serves a particular
type of investment program. For historical reasons, which are no longer
significant, the Socially Responsive Series were placed in different trusts. The
Fund, for example, was placed in Equity Trust, and is available only through the
Plan. All of the other series of Equity Trust, however, are available through a
variety of pension plans, brokers, and mutual fund "supermarkets." The Socially
Responsive Series that should be a part of Equity Trust - Neuberger Berman
Socially Responsive Trust - is instead part of a different trust, known as
Neuberger Berman Equity Assets. As the number of Socially Responsive Series has
grown, this misalignment has become administratively cumbersome, resulting in
extra Securities and Exchange Commission filings, additional legal costs, and
added potential for costly errors.
For these reasons, both NBMI and the Boards of Trustees of the trusts
believe it is desirable to realign the Socially Responsive Series in the proper
trusts.
<PAGE>
The realignment of the Socially Responsive Series can take place only
if all Socially Responsive Series take part. Thus, even if the Plan trustees
approve the Fund's conversion to a series of Equity Series, the Realignment will
only occur if the other two Socially Responsive Series approve the similar
realignment.
SUMMARY OF THE REALIGNMENT PLAN
The following discussion summarizes the important terms of the
Realignment Plan. This summary is qualified in its entirety by reference to the
Realignment Plan itself, which is attached as Appendix A to this Proxy
Statement.
If this Proposal is approved by the Plan trustees, Equity Series will
create the New Series. On November __, 1999 or such later date to which Equity
Trust and Equity Series agree (the "Closing Date"), the Fund will transfer all
of its assets to the New Series in exchange solely for shares of the New Series
("New Series Shares") equal to the number of the Fund shares outstanding on the
Closing Date ("Fund Shares") and the assumption by the New Series of all of the
liabilities of the Fund. Immediately thereafter, the Fund will constructively
distribute to each Fund shareholder one New Series Share for each Fund Share
held by the shareholder on the Closing Date in liquidation of the Fund Shares.
As soon as is practicable after this distribution of New Series Shares, the Fund
will be terminated as a series of Equity Trust. UPON COMPLETION OF THE
REALIGNMENT, EACH FUND INVESTOR WILL OWN FULL AND FRACTIONAL NEW SERIES SHARES
EQUAL IN NUMBER, DENOMINATION AND AGGREGATE NET ASSET VALUE TO THE FUND SHARES
THE INVESTOR HELD IMMEDIATELY BEFORE THE REALIGNMENT.
The Realignment Plan obligates Equity Series, on behalf of the New
Series, to enter into (i) an Administration Agreement with respect to the New
Series (the "New Administration Agreement") and (ii) a Distribution Agreement
(the "New Distribution Agreement") with respect to the New Series (collectively,
the "New Agreements"). Each New Agreement will be virtually identical to the
corresponding contract in effect with respect to Equity Trust prior to the
Closing Date. The Administration Agreement must be approved by the Equity Series
Board, including a majority of its Independent Trustees. Under the 1940 Act, the
Distribution Agreement must be approved by a majority of the Independent
Trustees of Equity Series cast in person at a meeting called for the purpose of
voting on such approval, or by a majority of the outstanding voting securities.
The New Agreements will take effect on the Closing Date, and each will
continue in effect until [August 2, 2000]. Thereafter, the New Administration
Agreement will continue in effect only if its continuance is approved at least
annually by the vote or written consent of the Equity Series Board, including a
majority of its Independent Trustees. The New Distribution Agreement will
continue in effect only if approved annually (i) by the vote of a majority of
Independent Trustees cast in person at a meeting called for the purpose of
voting on such approval or (ii) by the vote of a majority of trustees or a
majority of the outstanding voting shares of the New Series, and may be
terminated at any time without penalty by a vote of a majority of Equity Series'
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<PAGE>
Independent Trustees or a majority of the outstanding voting shares of the New
Series.
The obligations of Equity Trust and Equity Series under the Realignment
Plan are subject to various conditions as stated therein. Notwithstanding the
approval of the Realignment Plan by the Plan trustees, it may be terminated or
amended at any time prior to the Realignment by action of either the Equity
Trust or Equity Series Board (so long as the amendment, if made after approval
of the Realignment Plan, does not materially adversely affect the Fund's
shareholders' interests) and may be terminated prior thereto by either Equity
Trust or Equity Series, if (i) there is a material breach by the other party of
any representation, warranty, or agreement contained in the Realignment Plan to
be performed at or prior to the Closing Date or (ii) it reasonably appears that
the other party will not or cannot meet a condition of the Realignment Plan.
Either Equity Trust or Equity Series may at any time waive compliance with any
of the covenants and conditions contained in the Realignment Plan, provided that
the waiver does not materially adversely affect the interests of Fund
shareholders.
EXPENSES
The expenses of the Realignment, estimated at $________ in the
aggregate, will be borne by NBMI.
TEMPORARY WAIVER OF INVESTMENT RESTRICTIONS
Certain fundamental investment restrictions of the Fund, which prohibit
it from acquiring more than a stated percentage of ownership of another company,
might be construed as restricting its ability to carry out the Realignment.
"Fundamental" investment restrictions can be changed only with shareholder
approval. By approving the Realignment Plan, the Plan trustees will be agreeing
to waive, only for the purpose of the Realignment, those fundamental investment
restrictions that could prohibit or otherwise impede the transaction.
TAX CONSEQUENCES OF THE REALIGNMENT
Both Equity Trust and Equity Series will receive an opinion from their
counsel, Kirkpatrick & Lockhart LLP, that the Realignment will constitute a
tax-free reorganization within the meaning of section 368(a)(1)(F) of the
Internal Revenue Code of 1986, as amended. Accordingly, neither the Fund, the
New Series nor the Fund's shareholders will recognize gain or loss for federal
income tax purposes upon (i) the transfer of the Fund's assets in exchange
solely for New Series Shares and the assumption by the New Series of the Fund's
liabilities or (ii) the distribution of the New Series Shares to the Fund's
shareholders in liquidation of their Fund Shares. The opinion will further
provide, among other things, that (1) a Fund shareholder's aggregate basis for
federal income tax purposes of the New Series Shares to be received by the
shareholder in the Realignment will be the same as the aggregate basis of Fund
Shares to be constructively surrendered in exchange for those New Series Shares
and (2) a Fund shareholder's holding period for the New Series Shares will
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<PAGE>
include the shareholder's holding period for the Fund Shares, provided that
those Fund Shares were held as capital assets at the time of Realignment.
CONCLUSION
The Board has concluded that the proposed Realignment Plan is in the
best interests of the Fund's shareholders. A vote in favor of the Realignment
Plan encompasses (i) approval of the conversion of the Fund to the New Series,
and (ii) approval of the temporary waiver of certain investment limitations of
the Fund to permit the Realignment (see "Temporary Waiver of Investment
Restrictions" above). If approved, the Realignment Plan will take effect on the
Closing Date. If the Realignment Plan is not approved, the Fund will continue to
operate as a series of Equity Trust.
REQUIRED VOTE. Approval of the Realignment Plan requires the
affirmative vote of a majority of the outstanding voting securities of the Fund,
as defined in the 1940 Act.
THE BOARD UNANIMOUSLY RECOMMENDS THAT THE PLAN TRUSTEES
VOTE "FOR" PROPOSAL 1.
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PROPOSAL 2 - RATIFICATION OR REJECTION OF SELECTION OF INDEPENDENT ACCOUNTANTS
The Board, including all of its Independent Trustees, has selected
PricewaterhouseCoopers LLP to continue to serve as independent accountants to
the Fund, subject to ratification by the Fund's shareholders.
PricewaterhouseCoopers LLP has no direct financial interest or material indirect
financial interest in the Fund. Representatives of PricewaterhouseCoopers LLP
are not expected to attend the Meeting, but have been given the opportunity to
make a statement if they so desire, and will be available should any matter
arise requiring their presence.
The independent accountants examine annual financial statements for the
Fund and provide other audit and tax-related services. In recommending the
selection of PricewaterhouseCoopers LLP, the Board reviewed the nature and scope
of the services to be provided (including non-audit services) and whether the
performance of such services would affect the accountants' independence.
REQUIRED VOTE. Approval of Proposal 2 requires the affirmative vote of
a majority of the shares present and voting at the Meeting, provided that a
quorum is present.
<PAGE>
THE BOARD UNANIMOUSLY RECOMMENDS THAT THE PLAN TRUSTEES
VOTE "FOR" PROPOSAL 2.
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OTHER INFORMATION
INFORMATION ABOUT NBMI. NBMI, located at 605 Third Avenue, New York, New
York 10158, serves as the Fund's principal underwriter and administrator and as
investment adviser to the Portfolio. NBMI manages the Portfolio in conjunction
with Neuberger Berman, LLC, as sub-adviser. Together, the firms manage more than
$57.0 billion in total assets (as of June 30, 1999) and continue an asset
management history that began in 1939.
OTHER MATTERS TO COME BEFORE THE MEETING. The Board does not intend to
present any other business at the Meeting, nor is it aware that any shareholder
intends to do so. If, however, any other matters are properly brought before the
Meeting, the persons named in the accompanying proxy card will vote on those
matters in accordance with their judgment.
SHAREHOLDER PROPOSALS. Equity Trust and Equity Series do not hold annual
shareholder meetings. Shareholders wishing to submit proposals for consideration
for inclusion in a proxy statement for a subsequent shareholder meeting should
send their written proposals to Equity Trust (or Equity Series, if the
Realignment is approved) at 605 Third Avenue, New York, New York 10158, such
that they will be received by Equity Trust a reasonable period of time prior to
any such meeting.
By Order of the Board of Trustees,
Claudia A. Brandon
Secretary
August ___, 1999
<PAGE>
APPENDIX A
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AGREEMENT AND PLAN OF REALIGNMENT AND TERMINATION
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This AGREEMENT AND PLAN OF REALIGNMENT AND TERMINATION ("Agreement") is
made as of _______ __, 1999, between Neuberger Berman Equity Trust, a Delaware
business trust ("Equity Trust"), on behalf of Neuberger Berman NYCDC Socially
Responsive Trust, a segregated portfolio of assets ("series") thereof ("Old
Fund"), and Neuberger Berman Equity Series, a Delaware business trust ("Equity
Series"), on behalf of its Neuberger Berman NYCDC Socially Responsive Trust
series ("New Fund"). (Old Fund and New Fund are sometimes referred to herein
individually as a "Fund" and collectively as the "Funds"; and Equity Trust and
Equity Series are sometimes referred to herein individually as an "Investment
Company.") All agreements, representations, actions, and obligations described
herein made or to be taken or undertaken by either Fund are made and shall be
taken or undertaken by Equity Trust on behalf of Old Fund and by Equity Series
on behalf of New Fund.
Old Fund intends to change its form and identity -- by converting from
a series of one Delaware business trust to a series of another Delaware business
trust -- through a reorganization within the meaning of section 368(a)(1)(F) of
the Internal Revenue Code of 1986, as amended ("Code"). Old Fund desires to
accomplish such conversion by transferring all its assets to New Fund (which is
being established solely for the purpose of acquiring such assets and continuing
Old Fund's business) in exchange solely for voting shares of beneficial interest
in New Fund ("New Fund Shares") and New Fund's assumption of Old Fund's
liabilities, followed by the constructive distribution of the New Fund Shares
pro rata to the holders of shares of beneficial interest in Old Fund ("Old Fund
Shares") in exchange therefor, all on the terms and conditions set forth in this
Agreement (which is intended to be, and is adopted as, a "plan of
reorganization" within the meaning of the regulations under section 368 of the
Code ("Regulations")). All such transactions are referred to herein as the
"Reorganization."
In consideration of the mutual promises herein contained, the parties
agree as follows:
1. PLAN OF REALIGNMENT AND TERMINATION
1.1. Old Fund agrees to assign, sell, convey, transfer, and deliver all
of its assets described in paragraph 1.2 ("Assets") to New Fund. New Fund agrees
in exchange therefor --
(a) to issue and deliver to Old Fund the number of full and
fractional (rounded to the third decimal place) New Fund Shares equal
to the number of full and fractional Old Fund Shares then outstanding,
and
(b) to assume all of Old Fund's liabilities described in
paragraph 1.3 ("Liabilities").
Such transactions shall take place at the Closing (as defined in paragraph 2.1).
1.2. The Assets shall include, without limitation, all cash, cash
equivalents, securities, receivables (including interest and dividends
receivable), claims and rights of action, rights to register shares under
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applicable securities laws, books and records, deferred and prepaid expenses
shown as assets on Old Fund's books, and other property owned by Old Fund at the
Effective Time (as defined in paragraph 2.1).
1.3. The Liabilities shall include all of Old Fund's liabilities,
debts, obligations, and duties of whatever kind or nature, whether absolute,
accrued, contingent, or otherwise, whether or not determinable at the Effective
Time, and whether or not specifically referred to in this Agreement.
1.4. At the Effective Time (or as soon thereafter as is reasonably
practicable), Old Fund shall distribute the New Fund Shares it received pursuant
to paragraph 1.1 to its shareholders of record, determined as of the Effective
Time (each a "Shareholder" and collectively "Shareholders"), in constructive
exchange for their Old Fund Shares. Such distribution shall be accomplished by
Equity Series' transfer agent's opening accounts on New Fund's share transfer
books in the Shareholders' names and transferring such New Fund Shares thereto.
Each Shareholder's account shall be credited with the respective pro rata number
of full and fractional (rounded to the third decimal place) New Fund Shares due
that Shareholder. All outstanding Old Fund Shares, including those represented
by certificates, shall simultaneously be canceled on Old Fund's share transfer
books. New Fund shall not issue certificates representing the New Fund Shares in
connection with the Reorganization.
1.5. As soon as reasonably practicable after distribution of the New
Fund Shares pursuant to paragraph 1.4, but in all events within six months after
the Effective Time, Old Fund shall be terminated as a series of Equity Trust and
any further actions shall be taken in connection therewith as required by
applicable law.
1.6. Any reporting responsibility of Old Fund to a public authority is
and shall remain its responsibility up to and including the date on which it is
terminated.
1.7. Any transfer taxes payable on issuance of New Fund Shares in a
name other than that of the registered holder on Old Fund's books of the Old
Fund Shares constructively exchanged therefor shall be paid by the person to
whom such New Fund Shares are to be issued, as a condition of such transfer.
2. CLOSING AND EFFECTIVE TIME
2.1. The Reorganization, together with related acts necessary to
consummate the same ("Closing"), shall occur at the Funds' principal office on
[_______ __, 1999], or at such other place and/or on such other date as to which
the parties may agree. All acts taking place at the Closing shall be deemed to
take place simultaneously as of the close of business on the date thereof or at
such other time as to which the parties may agree ("Effective Time").
2.2. Equity Series' fund accounting and pricing agent shall deliver at
the Closing a certificate of an authorized officer verifying that the
information (including adjusted basis and holding period, by lot) concerning the
Assets, including all portfolio securities, transferred by Old Fund to New Fund,
as reflected on New Fund's books immediately following the Closing, does or will
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conform to such information on Old Fund's books immediately before the Closing.
Equity Trust's custodian shall deliver at the Closing a certificate of an
authorized officer stating that (a) the Assets held by the custodian will be
transferred to New Fund at the Effective Time and (b) all necessary taxes in
conjunction with the delivery of the Assets, including all applicable federal
and state stock transfer stamps, if any, have been paid or provision for payment
has been made.
2.3. Equity Series' transfer agent shall deliver at the Closing a
certificate as to the opening on New Fund's share transfer books of accounts in
the Shareholders' names. Equity Series shall issue and deliver a confirmation to
Equity Trust evidencing the New Fund Shares to be credited to Old Fund at the
Effective Time or provide evidence satisfactory to Equity Trust that such New
Fund Shares have been credited to Old Fund's account on such books. At the
Closing, each party shall deliver to the other such bills of sale, checks,
assignments, stock certificates, receipts, or other documents as the other party
or its counsel may reasonably request.
2.4. Each Investment Company shall deliver to the other at the Closing
a certificate executed in its name by its President or a Vice President in form
and substance satisfactory to the recipient and dated the Effective Time, to the
effect that the representations and warranties it made in this Agreement are
true and correct at the Effective Time except as they may be affected by the
transactions contemplated by this Agreement.
3. REPRESENTATIONS AND WARRANTIES
3.1. Old Fund represents and warrants as follows:
3.1.1. Equity Trust is a business trust duly organized,
validly existing, and in good standing under the laws of the State of
Delaware; and a copy of its Certificate of Trust has been duly filed in
the office of the Secretary of State thereof;
3.1.2. Equity Trust is duly registered as an open-end
management investment company under the Investment Company Act of 1940,
as amended ("1940 Act"), and such registration will be in full force
and effect at the Effective Time;
3.1.3. Old Fund is a duly established and designated series
of Equity Trust;
3.1.4. At the Closing, Old Fund will have good and marketable
title to the Assets and full right, power, and authority to sell,
assign, transfer, and deliver the Assets free of any liens or other
encumbrances; and upon delivery and payment for the Assets, New Fund
will acquire good and marketable title thereto;
3.1.5. New Fund Shares are not being acquired for the purpose
of making any distribution thereof, other than in accordance with the
terms hereof;
3.1.6. Old Fund is a "fund" as defined in section 851(g)(2) of
the Code; it qualified for treatment as a regulated investment company
under Subchapter M of the Code ("RIC") for each past taxable year since
it commenced operations and will continue to meet all the requirements
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for such qualification for its current taxable year (and the Assets
will be invested at all times through the Effective Time in a manner
that ensures compliance with the foregoing); and it has no earnings and
profits accumulated in any taxable year in which the provisions of
Subchapter M did not apply to it;
3.1.7. The Liabilities were incurred by Old Fund in the
ordinary course of its business and are associated with the Assets;
3.1.8. Old Fund is not under the jurisdiction of a court in a
proceeding under Title 11 of the United States Code or similar case
within the meaning of section 368(a)(3)(A) of the Code;
3.1.9. Not more than 25% of the value of Old Fund's total
assets (excluding cash, cash items, and U.S. government securities) is
invested in the stock and securities of any one issuer, and not more
than 50% of the value of such assets is invested in the stock and
securities of five or fewer issuers;
3.1.10. As of the Effective Time, Old Fund will not have
outstanding any warrants, options, convertible securities, or any other
type of rights pursuant to which any person could acquire Old Fund
Shares; and
3.1.11. As of the Effective Time, the performance of this
Agreement shall have been duly authorized by all necessary action by
Old Fund's shareholders.
3.2. New Fund represents and warrants as follows:
3.2.1. Equity Series is a business trust duly organized,
validly existing, and in good standing under the laws of the State of
Delaware; and a copy of its Certificate of Trust has been duly filed in
the office of the Secretary of State thereof;
3.2.2. Equity Series is duly registered as an open-end
management investment company under the 1940 Act, and such registration
will be in full force and effect at the Effective Time;
3.2.3. Before the Effective Time, New Fund will be a duly
established and designated series of Equity Series;
3.2.4. New Fund has not commenced operations and will not do
so until after the Closing;
3.2.5. Before the Effective Time, there will be no issued and
outstanding shares in New Fund or any other securities issued by New
Fund, except as provided in paragraph 4.4;
3.2.6. No consideration other than New Fund Shares (and New
Fund's assumption of the Liabilities) will be issued in exchange for
the Assets in the Reorganization;
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3.2.7. The New Fund Shares to be issued and delivered to Old
Fund hereunder will have been duly authorized at the Effective Time
and, when issued and delivered as provided herein, will be duly and
validly issued and outstanding shares of New Fund, fully paid and
non-assessable;
3.2.8. New Fund will be a "fund" as defined in section
851(g)(2) of the Code and will meet all the requirements to qualify for
treatment as a RIC for its taxable year in which the Reorganization
occurs;
3.2.9. New Fund has no plan or intention to issue additional
New Fund Shares following the Reorganization except for shares issued
in the ordinary course of its business as a series of an open-end
investment company; nor does New Fund have any plan or intention to
redeem or otherwise reacquire any New Fund Shares issued to the
Shareholders pursuant to the Reorganization, except to the extent it is
required by the 1940 Act to redeem any of its shares presented for
redemption at net asset value in the ordinary course of that business;
3.2.10. Following the Reorganization, New Fund (a) will
continue Old Fund's "historic business" (within the meaning of section
1.368-1(d)(2) of the Regulations), (b) use a significant portion of Old
Fund's historic business assets (within the meaning of section
1.368-1(d)(3) of the Regulations) in a business, (c) has no plan or
intention to sell or otherwise dispose of any of the Assets, except for
dispositions made in the ordinary course of that business and
dispositions necessary to maintain its status as a RIC, and (d) expects
to retain substantially all the Assets in the same form as it receives
them in the Reorganization, unless and until subsequent investment
circumstances suggest the desirability of change or it becomes
necessary to make dispositions thereof to maintain such status;
3.2.11. There is no plan or intention for New Fund to be
dissolved or merged into another business trust or a corporation or any
"fund" thereof (within the meaning of section 851(g)(2) of the Code)
following the Reorganization; and
3.2.12. Immediately after the Reorganization, (a) not more
than 25% of the value of New Fund's total assets (excluding cash, cash
items, and U.S. government securities) will be invested in the stock
and securities of any one issuer and (b) not more than 50% of the value
of such assets will be invested in the stock and securities of five or
fewer issuers.
3.3. Each Fund represents and warrants as follows:
3.3.1. The fair market value of the New Fund Shares received
by each Shareholder will be approximately equal to the fair market
value of the Old Fund Shares constructively surrendered in exchange
therefor;
3.3.2. Its management --
(a) is unaware of any plan or intention of
Shareholders to redeem, sell, or otherwise dispose of (i) any
portion of their Old Fund Shares before the Reorganization to
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any person related (within the meaning of section
1.368-1(e)(3) of the Regulations) to either Fund or (ii) any
portion of the New Fund Shares to be received by them in the
Reorganization to any person related (as so defined) to New
Fund and
(b) anticipates that (i) dispositions of those New
Fund Shares at the time of or soon after the Reorganization
will not exceed the usual rate and frequency of dispositions
of shares of Old Fund as a series of an open-end investment
company, (ii) the percentage of Shareholder interests, if any,
that will be disposed of as a result of or at the time of the
Reorganization will be DE MINIMIS, and (iii) there will not be
extraordinary redemptions of New Fund Shares immediately
following the Reorganization;
3.3.3. The Shareholders will pay their own expenses, if any,
incurred in connection with the Reorganization;
3.3.4. Immediately following consummation of the
Reorganization, the Shareholders will own all the New Fund Shares and
will own such shares solely by reason of their ownership of Old Fund
Shares immediately before the Reorganization;
3.3.5. Immediately following consummation of the
Reorganization, New Fund will hold the same assets -- except for assets
distributed to shareholders in the course of its business as a RIC and
assets used to pay expenses incurred in connection with the
Reorganization -- and be subject to the same liabilities that Old Fund
held or was subject to immediately prior to the Reorganization, plus
any liabilities for expenses of the parties incurred in connection with
the Reorganization. Such excepted assets, together with the amount of
all redemptions and distributions (other than regular, normal
dividends) made by Old Fund immediately preceding the Reorganization,
will, in the aggregate, constitute less than 1% of its net assets;
3.3.6. There is no intercompany indebtedness between the
Funds that was issued or acquired, or will be settled, at a discount;
and
3.3.7. Neither Fund will be reimbursed for any expenses
incurred by it or on its behalf in connection with the Reorganization
unless those expenses are solely and directly related to the
Reorganization (determined in accordance with the guidelines set forth
in Rev. Rul. 73-54, 1973-1 C.B. 187) ("Reorganization Expenses").
4. CONDITIONS PRECEDENT
Each Fund's obligations hereunder shall be subject to (a) performance
by the other Fund of all its obligations to be performed hereunder at or before
the Effective Time, (b) all representations and warranties of the other Fund
contained herein being true and correct in all material respects as of the date
hereof and, except as they may be affected by the transactions contemplated
hereby, as of the Effective Time, with the same force and effect as if made at
and as of the Effective Time, and (c) the further conditions that, at or before
the Effective Time:
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4.1. This Agreement and the transactions contemplated hereby shall have
been duly adopted and approved by each Investment Company's board of trustees
(each, a "board") and shall have been approved by Old Fund's shareholders in
accordance with applicable law;
4.2. All necessary filings shall have been made with the Securities and
Exchange Commission ("SEC") and state securities authorities, and no order or
directive shall have been received that any other or further action is required
to permit the parties to carry out the transactions contemplated hereby. All
consents, orders, and permits of federal, state, and local regulatory
authorities (including the SEC and state securities authorities) deemed
necessary by either Investment Company to permit consummation, in all material
respects, of the transactions contemplated hereby shall have been obtained,
except where failure to obtain same would not involve a risk of a material
adverse effect on the assets or properties of either Fund, provided that either
Investment Company may for itself waive any of such conditions;
4.3. Each Investment Company shall have received an opinion of
Kirkpatrick & Lockhart LLP, addressed to and in form and substance satisfactory
to it, as to the federal income tax consequences mentioned below ("Tax
Opinion"). In rendering the Tax Opinion, such counsel may rely as to factual
matters, exclusively and without independent verification, on the
representations made in this Agreement (or in separate letters addressed to such
counsel) and the certificates delivered pursuant to paragraph 2.4. The Tax
Opinion shall be substantially to the effect that, based on the facts and
assumptions stated therein and conditioned on consummation of the Reorganization
in accordance with this Agreement, for federal income tax purposes:
4.3.1. New Fund's acquisition of the Assets in exchange solely
for New Fund Shares and New Fund's assumption of the Liabilities,
followed by Old Fund's distribution of those shares pro rata to the
Shareholders constructively in exchange for the Shareholders' Old Fund
Shares, will qualify as a reorganization within the meaning of section
368(a)(1)(F) of the Code, and each Fund will be "a party to a
reorganization" within the meaning of section 368(b) of the Code;
4.3.2. Old Fund will recognize no gain or loss on the transfer
of the Assets to New Fund in exchange solely for New Fund Shares and
New Fund's assumption of the Liabilities or on the subsequent
distribution of those shares to the Shareholders in constructive
exchange for their Old Fund Shares;
4.3.3. New Fund will recognize no gain or loss on its receipt
of the Assets in exchange solely for New Fund Shares and its assumption
of the Liabilities;
4.3.4. New Fund's basis for the Assets will be the same as the
basis therefor in Old Fund's hands immediately before the
Reorganization, and New Fund's holding period for the Assets will
include Old Fund's holding period therefor;
4.3.5. A Shareholder will recognize no gain or loss on the
constructive exchange of all its Old Fund Shares solely for New Fund
Shares pursuant to the Reorganization;
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4.3.6. A Shareholder's aggregate basis for the New Fund Shares
to be received by it in the Reorganization will be the same as the
aggregate basis for its Old Fund Shares to be constructively
surrendered in exchange for those New Fund Shares, and its holding
period for those New Fund Shares will include its holding period for
those Old Fund Shares, provided they are held as capital assets by the
Shareholder at the Effective Time; and
4.3.7. For purposes of section 381 of the Code, New Fund will
be treated as if there had been no Reorganization. Accordingly, the
Reorganization will not result in the termination of Old Fund's taxable
year, Old Fund's tax attributes enumerated in section 381(c) of the
Code will be taken into account by New Fund as if there had been no
Reorganization, and the part of Old Fund's taxable year before the
Reorganization will be included in New Fund's taxable year after the
Reorganization.
Notwithstanding subparagraphs 4.3.2 and 4.3.4, the Tax Opinion may state that no
opinion is expressed as to the effect of the Reorganization on the Funds or any
Shareholder with respect to any Asset as to which any unrealized gain or loss is
required to be recognized for federal income tax purposes on the termination or
transfer thereof under a mark-to-market system of accounting;
4.4. Equity Series (on behalf of and with respect to New Fund) shall
have entered into any agreements necessary for New Fund's operation as a series
of an open-end investment company. Each such agreement shall have been approved
by Equity Series' trustees and, to the extent required by law, by such of those
trustees who are not "interested persons" (as defined in the 1940 Act) thereof;
and
4.5. The Agreement and Plan of Realignment and Termination of even date
herewith (substantially similar to this Agreement) ("Similar Agreement")
providing for the conversion of Neuberger Berman Socially Responsive Trust from
a series of Neuberger Berman Equity Assets, a Delaware business trust registered
as an open-end management investment company under the 1940 Act ("Equity
Assets"), to a series of Equity Trust and the Similar Agreement providing for
the conversion of Neuberger Berman Socially Responsive Assets from a series of
Equity Series to a series of Equity Assets, and the transactions contemplated
thereby, shall have been duly adopted and approved by the respective investment
companies' boards of trustees and shall have been approved by the respective
converting funds' shareholders in accordance with applicable law.
At any time before the Closing, either Investment Company may waive any
of the foregoing conditions (except those set forth in paragraphs 4.1 and 4,5)
if, in the judgment of its board, such waiver will not have a material adverse
effect on its Fund's shareholders' interests.
5. BROKERAGE FEES AND EXPENSES
5.1. Each Investment Company represents and warrants to the other that
there are no brokers or finders entitled to receive any payments in connection
with the transactions provided for herein.
5.2. Except as otherwise provided herein, the Reorganization Expenses
shall be borne by Neuberger Berman Management Incorporated.
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6. ENTIRE AGREEMENT; NO SURVIVAL
Neither party has made any representation, warranty, or covenant not
set forth herein, and this Agreement constitutes the entire agreement between
the parties. The representations, warranties, and covenants contained herein or
in any document delivered pursuant hereto or in connection herewith shall not
survive the Closing.
7. TERMINATION
This Agreement may be terminated at any time at or before the Effective
Time, whether before or after approval by Old Fund's shareholders:
7.1. By either Fund (a) in the event of the other Fund's material
breach of any representation, warranty, or covenant contained herein to be
performed at or prior to the Effective Time, (b) if a condition to its
obligations has not been met and it reasonably appears that such condition will
not or cannot be met, or (c) if the Closing has not occurred on or before
[December 31, 1999]; or
7.2. By the parties' mutual agreement.
In the event of termination under paragraphs 7.1(c) or 7.2, there shall
be no liability for damages on the part of either Fund, or the trustees or
officers of either Investment Company, to the other Fund.
8. AMENDMENT
This Agreement may be amended, modified, or supplemented at any time,
notwithstanding approval thereof by Old Fund's shareholders, in any manner
mutually agreed upon by the parties; provided that following such approval, no
such amendment shall have a material adverse effect on the Shareholders'
interests.
9. MISCELLANEOUS
9.1. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of Delaware; provided that, in the case of
any conflict between such laws and the federal securities laws, the latter shall
govern.
9.2. Nothing expressed or implied herein is intended or shall be
construed to confer upon or give any person, firm, trust, or corporation other
than the parties and their respective successors and assigns any rights or
remedies under or by reason of this Agreement.
9.3. This Agreement may be executed in one or more counterparts, all of
which shall be considered one and the same agreement, and shall become effective
when one or more counterparts have been executed by each Investment Company and
delivered to the other party hereto. The headings contained in this Agreement
are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.
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9.4. The execution and delivery of this Agreement have been authorized
by each Investment Company's trustees, and this Agreement has been executed and
delivered by their respective authorized officers acting as such; neither such
authorization by such trustees nor such execution and delivery by such officers
shall be deemed to have been made by any of them individually or to impose any
liability on any of them or any shareholder of either Investment Company
personally, but shall bind only the assets and property of the respective Funds,
as provided in each Investment Company's Declaration of Trust.
IN WITNESS WHEREOF, each party has caused this Agreement to be executed
and delivered by its duly authorized officers as of the day and year first
written above.
ATTEST: NEUBERGER BERMAN EQUITY TRUST,
on behalf of its series,
Neuberger Berman NYCDC Socially Responsive
Trust
By:
- ------------------------- -------------------------
Secretary President
ATTEST: NEUBERGER BERMAN EQUITY SERIES,
on behalf of its series,
Neuberger Berman NYCDC Socially Responsive
Trust
By:
- ------------------------- -------------------------
Secretary President
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[Name and Address]
NEUBERGER BERMAN NYCDC SOCIALLY RESPONSIVE TRUST
NEUBERGER BERMAN EQUITY TRUST
PROXY FOR THE SPECIAL MEETING OF SHAREHOLDERS
October 15, 1999
This proxy is being solicited on behalf of the Board of Trustees of
Neuberger Berman Equity Trust ("Company") and relates to the proposals with
respect to Neuberger Berman NYCDC Socially Responsive Trust, a series of the
Company ("Fund"). The undersigned hereby appoints as proxies Lawrence Zicklin,
Michael J. Weiner and Claudia A. Brandon and each of them (with power of
substitution), to vote all of the undersigned's shares of beneficial interest in
the Fund at the Special Meeting of Shareholders to be held at 10:00 a.m.,
Eastern time, on October 15, 1999, at the offices of the Company, 605 Third
Avenue, 41st Floor, New York, NY 10158-3698, and any adjournment thereof
("Meeting"), with all the power the undersigned would have if personally
present.
The shares represented by this proxy will be voted as instructed.
Unless indicated to the contrary, this proxy shall be deemed to grant authority
to vote "FOR" all proposals set forth in this proxy statement relating to the
Fund and discretionary power to vote upon such other business as may properly
come before the Meeting.
YOUR VOTE IS IMPORTANT. IF YOU ARE NOT VOTING BY PHONE OR INTERNET, PLEASE SIGN
AND DATE THIS PROXY BELOW AND RETURN IT PROMPTLY IN THE ENCLOSED ENVELOPE.
TO VOTE BY TOUCH-TONE PHONE OR THE INTERNET, PLEASE CALL [1-800-690-6903] TOLL
FREE OR VISIT WWW.PROXYVOTE.COM ON THE WORLD WIDE WEB.
TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:
[X] KEEP THIS PORTION FOR YOUR RECORDS
<PAGE>
DETACH AND RETURN THIS PORTION ONLY
THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.
NEUBERGER BERMAN NYCDC SOCIALLY RESPONSIVE TRUST
NEUBERGER BERMAN EQUITY TRUST
VOTE ON PROPOSALS FOR AGAINST ABSTAIN
1. Approval of an Agreement and Plan of
Realignment and Termination providing for
the Conversionof the Fund from a series
of the Company to a separate series of
Neuberger Berman Equity Series.
2. Ratification of the selection of
PricewaterhouseCoopers LLP as the Fund's
Independent Accountants.
3. To consider and vote upon such other
matters as may properly come before said
meeting or any adjournments thereof.
YOUR VOTE IS IMPORTANT. IF YOU ARE NOT VOTING BY PHONE OR INTERNET, PLEASE SIGN
AND DATE THIS PROXY BELOW AND RETURN IT PROMPTLY IN THE ENCLOSED ENVELOPE.
TO VOTE BY TOUCH-TONE PHONE, PLEASE CALL [1-800-690-6903] TOLL FREE. TO VOTE BY
INTERNET, VISIT OUR WEBSITE AT WWW.PROXYVOTE.COM.
Please sign exactly as name appears hereon. Attorneys-in-fact, executors,
administrators, etc. should so indicate. If a shareholder is a corporation or
partnership, please sign in full corporate or partnership name by an authorized
person.
- ---------------------------------- ----------------------------------
Signature Date
