Document:

<PAGE>   1
                                                                   EXHIBIT 10.29

                      ASSIGNMENT AND ASSUMPTION AGREEMENT

     ASSIGNMENT AND ASSUMPTION AGREEMENT ("Agreement"), effective as of April
1, 1999 (the "Effective Date"), between Siemens Information and Communications
Networks, Inc., a corporation incorporated under the laws of Delaware, with its
principal office located at 900 Broken Sound Parkway, Boca Raton, Florida,
United States of America 33487 (hereinafter "Assignor"), and Unisphere
Solutions, Inc., a corporation incorporated under the laws of Delaware, with
its principal office located at One Executive Drive, Chelmsford, MA 01824
(hereinafter "Assignee").

     WHEREAS, Assignor wishers to contribute to the capital of Assignee
substantially all of the assets, operations, business and liabilities of
Assignor's Voice over Internet Protocol (VoIP) and softswitch research and
development business located in Boca Raton, Florida, which consists of certain
employees, assets and intellectual property rights, all of which are identified
in detail below in this Agreement (the "Business"), as of the Effective Date of
this Agreement, pursuant to the terms and conditions set forth herein;

     NOW, THEREFORE, Assignor and Assignee hereby agree as follows:

                                   ARTICLE I

                                  DEFINITIONS

     The following terms shall, for the purposes of this Agreement, have the
following meanings:

     "Affiliate" shall mean, with respect to any Person, any other Person
directly or indirectly controlling, controlled by, or under common control with
such first Person. The term "control" shall mean the power to direct the
affairs of a Person by reason of ownership of voting stock, by contract or
otherwise. The term "Affiliates" shall include all Subsidiaries of such Person.

     "Confidential Information" shall mean confidential or proprietary written,
recorded or oral information or data (including such information pertaining to
research, development, engineering, manufacturing, service, sale, marketing,
technical information, intellectual property, financial, operating, cost,
performance, business, process or customers), whether such confidential or
proprietary nature is indicated orally or in writing (by such terms or terms of
similar effect) or in a context in which the source of such information or data
reasonably communicates, or the recipient of such information or data should
reasonably have understood, that it should be treated as confidential or
proprietary, whether or not the specific word "confidential" or "proprietary"
is used.

     "Instruments of Assignment" shall mean one or more instruments providing
for the assignment and transfer by Assignor to Assignee of Assets (as such term
is defined in Section 2.1 hereof).

     "Intellectual Property" shall mean all domestic and foreign patents,
utility models, patent applications, trademarks, trademark registration,
servicemarks, tradenames, tradename registrations, registered copyrights, and
applications for any of the foregoing, arising out of the Business.

     "Person" shall mean any individual, corporation, partnership, joint
venture, trust, unincorporated organization, other entity or Governmental Body.

<PAGE>   2
     "Subsidiary" of any Person shall mean any other Person which, now or at any
time hereafter, is directly or indirectly owned 50% or more (in terms of voting
securities or other voting ownership or partnership interest) by such first
Person; provided, however, that such other Person shall be deemed to be a
"Subsidiary" only so long as the foregoing test continues to be met.

     "Technology" shall mean all trade secrets, inventions, know-how, formulae,
processes, procedures, research records, records of inventions, test
information, market surveys and marketing know-how and unregistered copyrights
owned by the Assignor, arising out of the Business.

                                   ARTICLE II

                           ASSIGNMENT AND ASSUMPTION

          SECTION 2.1  Assignment of Assets.  As of the Effective Date, Assignor
hereby contributes, assigns, conveys and transfers to Assignee, as a
contribution to Assignee's capital, and Assignee hereby receives, acquires and
accepts as such, all assets and properties of Assignor exclusively used or
exclusively held for use in the Business, including but not limited to the
following insofar as the following are exclusively used or exclusively held for
use in the Business:

     (a)  all Intellectual Property and Technology relating to, arising out of
or used in the Business;

     (b)  all assets of the Business, including but not limited to the
inventory, machinery, equipment, furniture, vehicles, office equipment and
other tangible personal property owned or leased by Assignor exclusively for
use in the Business; and

     (c)  all of Assignor's employees in the Business;

all of the foregoing being referred to herein as the "Assets." The Assets shall
include, but shall not be limited to, the tangible assets listed on Schedule 1
hereto.

          SECTION 2.2.  Assignment and Assumption of Liabilities.  As of the
Effective Date, Assignor hereby assigns to Assignee, and Assignee hereby
assumes and agrees to pay, honor and discharge all trade and other liabilities
existing on the Effective Date, whether accrued, contingent or otherwise and
whether known or unknown, arising out of or relating to the Business, all of
the foregoing referred to herein as the "Liabilities".

          SECTION 2.3.  Other Documents.  As of the Effective Date, Assignor
shall execute and deliver the Instruments of Assignment.

                                  ARTICLE III

                   REPRESENTATIONS AND WARRANTIES OF ASSIGNOR

                                       2

<PAGE>   3
         Assignor represents and warrants to Assignee that it is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Delaware and has full corporate power and authority to execute and
deliver this Agreement and the Instruments of Assignment and to perform its
obligations hereunder and thereunder and to consummate the transactions
contemplated hereby and thereby. The execution and delivery by Assignor of this
Agreement and the Instruments of Assignment and the performance by Assignor of
its obligations hereunder and thereunder and the consummation by Assignor of the
transactions contemplated hereby and thereby have been duly authorized by all
necessary corporate action on the part of Assignor. No other corporate action is
required by Assignor in connection herewith or therewith. This Agreement has
been, and when executed and delivered each of the Instruments of Assignment will
be, duly executed and delivered by a duly authorized officer of Assignor and
this Agreement constitutes and the Instruments of Assignment will constitute the
valid and legally binding obligations of Assignor, enforceable in accordance
with their respective terms.

                                   ARTICLE IV

                   REPRESENTATIONS AND WARRANTIES OF ASSIGNEE

         Assignee represents and warrants to Assignor that Assignee is a
corporation duly organized and in good standing under the laws of the State of
Delaware. Assignee has the power and authority to execute and deliver this
Agreement and to perform its obligations hereunder and to consummate the
transactions contemplated hereby. The execution and delivery by Assignee of this
Agreement and the performance by Assignee of its obligations hereunder and the
consummation by Assignee of the transactions contemplated hereby have been duly
authorized by all necessary action on the part of Assignee. No other action is
required by Assignee in connection herewith. This Agreement has been duly
executed and delivered by a duly authorized officer of Assignee, and this
Agreement constitutes the valid and legally binding obligations of Assignee,
enforceable in accordance with its terms.

                                   ARTICLE V

                                   COVENANTS

         SECTION 5.1. Confidentiality. (a) Subject to Section 5.1(b), each of
Assignor and Assignee shall, and shall cause its Affiliates to, keep
confidential and not disclose to any Person (including the receiving party's
other divisions) all Confidential Information relating to the other party hereto
and shall not use such Confidential Information for its own benefit.

         (b)   The obligations imposed by Section 5.1(a) hereof shall not apply,
or shall cease to apply, to any Confidential Information when, and to the
extent that, such Confidential Information:

         (i)   Becomes known to the public; or

         (ii)  Becomes known to the receiving party or its Affiliates from
sources other than the disclosing party or its Affiliates under circumstances
not involving any breach of any confidentiality obligation between such source
and the discloser or its Affiliates; or

                                       3
<PAGE>   4
     (iii)  Is required to be disclosed by law or applicable legal process,
any other applicable statute or governmental rule, regulation or order, or any
governmental requests for additional information or documents thereunder; or

     (iv)   The disclosing party expressly consents thereto in writing.

            SECTION 5.2. FURTHER ASSURANCES. (a) From and after the Effective
Date, Assignee and Assignor agree that each will act in a manner supporting
compliance, including compliance by its Affiliates, with all of their
obligations under this Agreement and the Instruments of Assignment.

            (b)  Assignor from time to time, at the request of Assignee, and
without further consideration, shall cause the execution and delivery of such
other instruments of conveyance and transfer and take such other action or
execute such other documents as Assignee may reasonably request in order more
effectively to convey, transfer to and vest in Assignee, and to put Assignee in
possession of, any Assets to be acquired by Assignee hereunder and, in the case
of any contracts and rights which cannot be effectively transferred without the
consent or approval of other Persons which is unobtainable, to use its best
reasonable efforts to ensure that Assignee receives the benefits thereof to the
maximum extent permissible in accordance with applicable law or other
applicable restrictions.

                                   ARTICLE VI

                            MISCELLANEOUS PROVISIONS

            SECTION 6.1. SCHEDULES. The Schedules to this Agreement shall be
construed with and as integral parts of this Agreement to the same extent as
if they were set forth verbatim herein; provided, however, that in the event of
any conflict between any such Schedule and this Agreement, this Agreement shall
control.

            SECTION 6.2. SUCCESSORS: ASSIGNMENT. This Agreement shall inure to
the benefit of, and be binding upon, Assignor and Assignee and their successors
and may be assigned in whole or in part thereby to any of their respective
Affiliates (with the assignor remaining secondarily liable thereon), but
otherwise this Agreement is not assignable by any party hereto, either in whole
or in part, without the prior written consent of the other parties, and any
such attempted assignment without such consent shall be null and void.

            SECTION 6.3. NO THIRD-PARTY BENEFICIARIES. Nothing herein is
intended to, or shall be construed to, confer upon any Person not a party
hereto any rights or benefits hereunder.

            SECTION 6.4. COUNTERPARTS. This Agreement may be executed in two or
more counterparts, each of which shall be considered an original, but all of
which together shall constitute the same instrument.

            SECTION 6.5. SEVERABILITY. If any term or provision of this
Agreement or the application thereof to any party hereto or set of
circumstances shall, in any jurisdiction and to any extent, be finally held to
be invalid or unenforceable, such term or provision shall only be ineffective
as to such jurisdiction, and only to the extent of such invalidity or
unenforceability, without invalidating or rendering unenforceable any other
terms or provisions of this Agreement under any other circumstances, and the
parties shall negotiate in good faith a substitute provision which comes as
close as possible to the

                                       4

<PAGE>   5
invalidated or unenforceable term or provisions, and puts the parties in a
position as nearly comparable as possible to the position they would have been
in but for the finding of invalidity or unenforceability, while remaining valid
and enforceable.

     SECTION 6.6 GOVERNING LAW. The interpretation and construction of this
Agreement and (unless otherwise expressly provided herein), all amendments
hereof and waivers and consents hereunder shall, to the extent the particular
subject matter is controlled by state law, be governed by and be construed in
accordance with the substantive law of the State of Delaware without regard to
the conflicts of laws principles thereof, except that United States federal law
shall govern any particular subject matter controlled thereby.

     IN WITNESS WHEREOF, Assignor and Assignee have caused this Assignment and
Assumption Agreement to be duly executed as of the date first above written.

STEMENS INFORMATION AND
COMMUNICATIONS NETWORKS, INC.               UNISPHERE SOLUTIONS, INC.

By /s/ Dieter Diehn                         By /s/ George Donahue
  ---------------------------                 ---------------------------
Name: Dieter Diehn                          Name: George Donahue
     ------------------------                    ------------------------
Title: VP & CFO                             Title: VP & CFO
      -----------------------                     -----------------------

                                       5
<PAGE>   6
                      ASSIGNMENT AND ASSUMPTION AGREEMENT

                                   SCHEDULE 1

                                TANGIBLE ASSETS

1.   EMPLOYEES
     (SEE ATTACHMENT A)

2.   FIXED ASSETS
     (SEE ATTACHMENT B)

                                       6
<PAGE>   7
                      ASSIGNMENT AND ASSUMPTION AGREEMENT

                                   SCHEDULE 1

                                Tangible Assets

1.   Employees
     (See Attachment A)

2.   Fixed Assets
     (See Attachment B)

                                       6

<PAGE>   8
                      ASSIGNMENT AND ASSUMPTION AGREEMENT

                                   SCHEDULE 1

                                TANGIBLE ASSETS

1.   EMPLOYEES
     (SEE ATTACHMENT A)

2.   FIXED ASSETS
     (SEE ATTACHMENT B)

                                       6
<PAGE>   9
          ATTACHMENT A

     Emp Name
------------------------------------
Arredondo, Tomas V
Carr, Stephen J
Chang, Mangping
Chang-Chien, Shelley
Chow, On-Kit
Clement, Michael
Colaco, Pedro A
Dunajick, Ming
Erler, Martin
Glasgow, George
Goyal, Devender K
Gregory, Michael
Gueldner, Claus T
Hage, Peter
Haynie, Linda A
Hettinger, Scott E
Huang, Lin
Hurry, Maurice C
Kahil, Aziz J
Korianski, Ricardo
LeConte, Alix
Lu, Tianling
Malaney, Shawn
Marmion, Joseph D
McConnell, David
McSheffrey, Dwight D
Miller, Franklyn H
Montiel, David
Negron Jr. Emilio
Nguyen, Hong T
Olson, Diane
Oulld-Alasa, Mourad
Pennington, George
Rahmati, Mohammad
Relthmeier, Johann
Roohi, Nader
Sandhu, Harminder S
Scheurie, Robert
Scott, Lee
Sothern-Haigh, Tracy
Su, Stephen
Teelucksingh, Ken T
Thompson, Damon C
Tudor, Florin
Turner, Nancy
Verduci, Sergio A
Verzhinski, Dimitri

<PAGE>   10
Wan, Vic
Wang, Jin
Whitten, James C
Wishod, Janet R
Wood, James M
Wu, Y. Vivian
Yang, Yan
<PAGE>   11
                            UNISPHERE SOLUTIONS, INC
                               VOIP FIXED ASSETS
                                  ATTACHMENT B

                                  DESCRIPTION

6E+08     0    11/1/97 PC-DELL XPICD/M166ST
6E+08     0    12/1/97 PC-DELL P6266/GXA/M
6E+08     0    12/1/97 PC-DELL P6266/GXA/M
6E+08     0    12/1/97 PC-DELL R6266/GXM/M
6E+08     0    3/1/98 PC-DELL P6266/GXA/M BASE
6E+08     0    5/1/98 PC-DELL P6266/GXA/M
6E+08     0    11/1/98 DELL LATITUDE CPi300XT
6E+08     0    11/1/98 DELL LATITUDE CPi300XT
6E+08     0    3/1/99 DELL LATITUDE PCi300XT
6E+08     0    3/1/99 DELL LATITUDE PCi300XT
6E+08     0    6/1/99 DELL LATITUDE CPi300XT
6E+08     0    12/1/98 DELL PC W/MONITOR
6E+08     0    12/1/98 DELL PC W/MONITOR
6E+08     0    2/1/97 PC-DELL LATITUDE XPI P150
6E+08     0    4/1/97 PC-COMPAQ LTE 5400
6E+08     0    4/1/97 SPARCSTATION 5
6E+08     0    6/1/97 PC-DELL LATITUDE LM M166MMX
6E+08     0    1/1/98 DELL POWER EDGE 4200
6E+08     0    12/1/97 PROC 9.1 GB EXT ULTRA
6E+08     0    2/1/98 PC-DELL LATITUDE CP M233XT
6E+08     0    2/1/98 PC-DELL LATITUDE CP M233XT
6E+08     0    5/1/98 PC-DELL P6266W/VIDEO
6E+08     0    8/1/98 PC-DELL P6350 100 MHZ GXI M+
6E+08     0    12/1/98 SUN ULTRA 60
6E+08     0    4/1/99 NEC EXPRESS 5800 ES1400 SERIES
6E+08     0    2/1/98 DOMINOWAN ANALYZER
6E+08     0    12/1/98 SUN ULTRA 60 COLOR MONITOR
6E+08     0    5/1/97 PC-DELL 6200/OP GXPRO
6E+08     0    12/1/98 SUN ULTRA 60 COLOR MONITOR
6E+08     0    12/1/98 SUN ULTRA 60 COLOR MONITOR
6E+08     0    5/1/97 PC-DELL 6200/OP GXPRO
6E+08     0    5/1/97 PC-DELL 6200/OP GXPRO
6E+08     0    12/1/98 SUN ULTRA 60 COLOR MONITOR
6E+08     0    5/1/97 PC-DELL 6200/OP GXPRO
6E+08     0    12/1/98 SUN ULTRA 60 COLOR MONITOR
6E+08     0    5/1/97 PC-DELL 6200/OP GXPRO
6E+08     0    5/1/97 PC-DELL 6200/OP GXPRO
6E+08     0    6/1/97 PC-DELL 6200/OP GXPRO
6E+08     0    12/1/98 SUN ULTRA 60
6E+08     0    6/1/97 PC-DELL 6200/OP GXPRO
6E+08     0    6/1/97 PC-DELL 6200/OP GXPRO
6E+08     0    12/1/98 SUN ULTRA 60

<PAGE>   12
<TABLE>
<S>          <C>     <C>
6E+08         0       6/1/97 PC-DELL 6200/OP GXPRO
6E+08         0      12/1/98 SUN ULTRA 60 COLOR MONITOR
6E+08         0       6/1/97 PC-DELL 6200/OP GXPRO
6E+08         0       6/1/97 PC-DELL 6200/OP GXPRO
6E+08         0      12/1/97 RACK MOUNT UPS
6E+08         0      10/1/97 PC-DELL 6200/OP GXPRO P200
6E+08         0      10/1/97 PC-DELL 6200/OP GXPRO P200
6E+08         0      12/1/97 DEH 2740 3CPM SUPER STACK 11 SWITCH
6E+08         0      10/1/97 PC-DELL 6200/OP GXPRO P200
6E+08         0      10/1/97 PC-DELL 6200/OP GXPRO P200
6E+08         0      12/1/98 SUN ULTRA 60 COLOR MONITOR
6E+08         0      10/1/97 MITSUBISHI DIAMOND PRO 21" MONITOR
6E+08         0      10/1/97 MITSUBISHI DIAMOND PRO 21" MONITOR
6E+08         0      12/1/98 SUN ULTRA 60
6E+08         0      10/1/97 MITSUBISHI DIAMOND PRO 21" MONITOR
6E+08         0      10/1/97 PC-DELL 6200/OP GXPRO P200
6E+08         0      10/1/99 ENTERPRISE 6000 SERVER
6E+08         0       2/1/98 ERWIN 3.0 ENTITY RELATION SOFTWARE
6E+08         0      10/1/97 PC-DELL 6200/OP GXPRO P200
6E+08         0      12/1/98 SUN ULTRA 60
6E+08         0      10/1/97 PC-DELL 6200/OP GXPRO P200
6E+08         0       2/1/98 ERWIN 3.0 ENTITY RELATION SOFTWARE
6E+08         0      11/1/97 PC-DELL DIMENSION XPS 300 MHZ PENTIUM
6E+08         0      10/1/96 FURNITURE INSTALLATION
6E+08         0       3/1/98 APC RACK MOUNT UPS
6E+08         0      10/1/96 LCD HI-RES PORTABLE
6E+08         0      10/1/99 CATALYST A/C POWER
6E+08         0      10/1/98 DELL P6350 (100 MHZ FSB)
6E+08         0       1/1/98 LEXM OPTRA 158225 S165ON PRINTER
6E+08         0      10/1/98 DELL P6350 (100 MHZ FSB)
6E+08         0       1/1/98 DELL POWEREDGE 4200, 266MHZ/512K
6E+08         0      10/1/98 DELL P6360 (100 MHZ FSB)
6E+08         0       1/1/98 DELL P6288/GXa/M BASE, W/2MB VIDEO MEMORY
6E+08         0      10/1/98 DELL P6360 (100 MHZ FSB)
6E+08         0      10/1/99 38 GBYTE SUN STOREDGE EXPANSION RACK
6E+08         0      10/1/98 DELL P6350 (100 MHZ FSB)
6E+08         0       2/1/98 DELL LATITUDE CP/M233ST SYGA
6E+08         0      10/1/98 DOMINOWAN (TM) 2MBPS ETSI INTERFACE
6E+08         0       2/1/98 DELL LATITUDE CP/M233ST SYGA
6E+08         0       1/1/98 DELL P6266/GXa/M BASE, W/2MB VIDEO MEMORY
6E+08         0       4/1/98 HP LASERJET PRINTER
6E+08         0       4/1/98 MULTIBIN MAILBOX
6E+08         0       5/1/98 HIPER ACCESS SYSTEM W/SERVER
6E+08         0       5/1/98 DELL DIMENSION XPS 333 MHZ PENTIUM
6E+08         0       2/1/98 PRIMERGY PRODUCT LINE
6E+08         0       5/1/98 DELL P6333 (PC)
6E+08         0       2/1/99 DELL P6350
6E+08         0       6/1/98 SUN ULTRA 5 SYSTEM W/270 MHZ
6E+08         0       7/1/98 181549 HP 233MMX SERVER
</TABLE>
<PAGE>   13
6E+08   0   2/1/99 DELL P6350
6E+08   0   5/1/98 DELL LATITUDE CP M233ST (LAPTOPS)
6E+08   0   2/1/98 CISCO 4500 ROUTER
6E+08   0   5/1/98 DELL LATITUDE CP M233ST (LAPTOP)
6E+08   0  12/1/96 DELL POWEREDGE 2300 BASE, 400 MHZ PROCESSOR
6E+08   0  12/1/97 FLUKE NETWORK ASSISTANT
6E+08   0  12/1/98 DELL POWEREDGE 2300 BASE 400 MHZ PROCESSOR
6E+08   0   1/1/98 DELL P6350 PC
6E+08   0   1/1/98 DELL 9300PC
6E+08   0   2/1/98 DELL 96266/GMAX/M BASE
6E+08   0   2/1/98 DELL P6266 GXA/M BASE
6E+08   0   7/1/98 DELL P6350 GX1/M BASE
6E+08   0  10/1/97 TOTAL CONTROL HUB & EDGE SERVER
6E+08   0   7/1/98 LASERJET 4000SE PRINTER
6E+08   0   8/1/98 DELL P6350 (100MHZ FSB) GX1/M+
6E+08   0  10/1/99 45-GBYTE SUN STOREDGE DISK ARRAY
6E+08   0  10/1/99 45-GBYTE STOREDGE A5000
6E+08   0   2/1/98 CISCO 4500 ROUTER
6E+08   0  10/1/98 SU2200 RM NET APC RACK MOUNT UPS
6E+08   0   4/1/99 DELL LATITUDE CP1300XT
6E+08   0   2/1/98 DELL LATITUDE CP/M233XT LAPTOP
6E+08   0   6/1/98 T-BERD PCM ANALYZER 224
6E+08   0   6/1/98 TSU 600 VP24 FXS PORTS
6E+08   0   9/1/98 90-01628 PCM SYSTEM CONTROLLER
6E+08   0   9/1/98 90-01520 ABACUS BASE SYSTEM
6E+08   0  11/1/98 SS7 MEGAPAC, 8LINK SPECTRA FOR IX300
6E+08   0  11/1/98 169005 APC RACK
6E+08   0  12/1/98 ABACUS RACKMOUNTABLE BASE SYSTEM
6E+08   0  12/1/98 WEB SERVER FOR IX3000 VOIP PRODUCT
6E+08   0  12/1/98 NSC SECURITY ROUTER
6E+08   0   2/1/99 HAWORTH PREMISE SYSTEMS FURNITURE
6E+08   0  12/1/98 HP OV MANAGEX NT SERVER & CONSOLE
6E+08   0  12/1/98 SUN ULTRA 60
6E+08   0   2/1/98 PC-DELL LATITUDE CP, M233ST
6E+08   0   2/1/98 COLOR OSCILLOSCOPE
6E+08   0   5/1/99 17" COLOR MONITOR
6E+08   0   5/1/99 NETSERVER 4DRIVES DISK ARRAY
6E+08   0   5/1/99 NETSERVER 4-DRIVES DISK ARRAY
6E+08   0   5/1/99 SURE STORE DLT40E TAPE DRIVE BACK UP
6E+08   0   5/1/99 HPLXR PRO SERVERS
6E+08   0   5/1/99 HPLXR PRO SERVERS
6E+08   0   2/1/99 SUN ULTRA 60 WORKSTATION SYSTEM
6E+08   0  12/1/98 SUN ULTRA
6E+08   0  11/1/98 DELL POWEREDGE SERVER
6E+08   0  11/1/98 DIAMOND PRO 21' MONITOR
6E+08   0  11/1/98 DIAMOND PRO 21" MONITOR
6E+08   0  11/1/98 DIAMOND PRO 21" MONITOR
6E+08   0  11/1/98 DIAMOND PRO 21" MONITOR
<PAGE>   14
6E+08          0         11/1/98 DIAMOND PRO 21" MONITOR
6E+08          0         11/1/98 DELL P6350 WORKSTATIONS
6E+08          0         11/1/98 DELL P6350 WORKSTATION
6E+08          0         11/1/98 DELL P6350 WORKSTATION
6E+08          0         11/1/98 DELL P6350 WORKSTATION
6E+08          0         11/1/98 DELL P6350 WORKSTATION
6E+08          0         11/1/98 DELL P6350 WORKSTATION
6E+08          0         11/1/98 DELL P6350 WORKSTATION
6E+08          0         11/1/98 DELL P6350 WORKSTATION
6E+08          0         11/1/98 DELL P6350 WORKSTATION
6E+08          0         11/1/98 DELL P6350 WORKSTATION
6E+08          0         11/1/98 DELL P6350 WORKSTATION
6E+08          0         11/1/98 DELL P6350 WORKSTATION
6E+08          0         11/1/98 DELL P6350 WORKSTATION
6E+08          0         11/1/98 DELL P6350 WORKSTATION
6E+08          0         11/1/98 DELL P6350 WORKSTATION
6E+08          0         10/1/98 DELL P6350 100MHZ FSB
6E+08          0         10/1/98 MITSUBISHI 21" MONITOR
6E+08          0         10/1/98 MITSUBISHI 21" MONITOR
6E+08          0         10/1/98 MITSUBISHI 21" MONITOR
6E+08          0         10/1/98 MITSUBISHI 21" MONITOR
6E+08          0         10/1/98 MITSUBISHI 21" MONITOR
6E+08          0         10/1/98 MITSUBISHI 21" MONITOR
6E+08          0         10/1/98 MITSUBISHI 21" MONITOR
6E+08          0         10/1/98 MITSUBISHI 21" MONITOR
6E+08          0         10/1/98 MITSUBISHI 21" MONITOR
6E+08          0         10/1/98 MITSUBISHI 21" MONITOR
6E+08          0         10/1/98 DELL POWEREDGE 2300 BASE 400MHZ PROCESSOR
6E+08          0         10/1/98 DELL SUPERSTACK II SWITCH 3300 12P
6E+08          0         3/30/99 PCI 4 LINK T1/E1
6E+08          0         3/30/99 PCI 4 LINK T1/E1 ADAPTER
6E+08          0         3/30/99 PCI 4 LINK T1/E1 ADAPTER
6E+08          0         3/30/99 OMNI/SIGNAL/WAVE
6E+08          0         10/1/98 DELL P6350 (100MHZ FSB)
6E+08          0         10/1/98 DELL P6350 (100MHZ FSB)
6E+08          0         10/1/98 DELL P6350 (100MHZ FSB)
6E+08          0         10/1/98 DELL P6350 (100MHZ FSB)
6E+08          0         10/1/98 DELL P6350 (100MHZ FSB)
6E+08          0         10/1/98 DELL P6350 (100MHZ FSB)
6E+08          0         10/1/98 DELL P6350 (100MHZ FSB)
6E+08          0         10/1/98 DELL P6350 (100MHZ FSB)
6E+08          0         10/1/98 DELL P6350 (100MHZ FSB)
6E+08          0         10/1/98 DELL P6350 (100MHZ FSB)
6E+08          0         10/1/98 MITSUBISHI 21" MONITORS
6E+08          0         10/1/98 MITSUBISHI 21" MONITOR
6E+08          0         10/1/98 MITSUBISHI 21" MONITOR
6E+08          0         10/1/98 MITSUBISHI 21" MONITOR
6E+08          0         10/1/98 MITSUBISHI 21" MONITOR
6E+08          0         10/1/98 MITSUBISHI 21" MONITOR
<PAGE>   15

<TABLE>
<S>            <C>            <C>
6E+08           0              10/1/98 MITSUBISHI 21" MONITOR
6E+08           0              10/1/98 MITSUBISHI 21" MONITOR
6E+08           0              10/1/98 MITSUBISHI 21" MONITOR
6E+08           0              10/1/98 MITSUBISHI 21" MONITOR
6E+08           0              10/1/98 MITSUBISHI 21" MONITOR
6E+08           0              10/1/98 MITSUBISHI 21" MONITOR
6E+08           0              10/1/98 MITSUBISHI 21" MONITOR
6E+08           0              10/1/98 MITSUBISHI 21" MONITOR
6E+08           0              10/1/98 MITSUBISHI 21" MONITOR
6E+08           0               2/1/98 24 PORT ADVANCED DIGITAL TELEPH
6E+08           0               2/1/98 DATA CHANNEL
6E+08           0               2/1/98 ADTRAN TSU-100
6E+08           0               2/1/98 CISCO 4500 ROUTER
6E+08           0              10/1/99 DELL P6350 (100MHZ FSB) GX1/M+
6E+08           0              10/1/98 3COM SUPERSTK 12PORT SWITCH
6E+08           0              10/1/99 ABACUS RACK MOUNTABLE BASE SYSTEM
6E+08           0              10/1/98 HP LASERJET 4000 TN 3 TRAYS
6E+08           0               2/1/98 DOMINOWAN ANALYZER
6E+08           0              10/1/99 SUN ULTRA SS BASE CONF. & MONITOR(INV# 031967)
6E+08           0              10/1/99 DELL LATITUDE
6E+08           0              10/1/99 DELL P6350 PC
6E+08           0              10/1/99 DELL P6350 PC
6E+08           0              10/1/99 DELL P6350 PC
6E+08           0              10/1/99 J112BAB:HP OPENVIEW NETWORK NODE(SOFTWARE)
6E+08           0               4/1/98 DELL LATITUDE CP, M233XT
6E+08           0              10/1/99 DELL NOTEBOOK 150 XPI CD
6E+08           0              10/1/99 PC-DELL XPICD M166
6E+08           0               3/1/98 COMPUSA LASER PRINTER HP4000SE
6E+08           0              10/1/99 PC-DELL XPICD/M166
6E+08           0               4/1/98 DELL PC P6266 GXaEM+/M BASE
6E+08           0              12/9/99 LAPTOP DELL LATITUDE CPi266XT
                                              VOIF Additions
</TABLE>

<PAGE>   16
\
<TABLE>
<CAPTION>

                    Historical          Accumulated           Net Book
                       Cost             Depreciation            Value
                    ----------          ------------          ---------
                   <S>                 <C>                  <C>
                     2,865.99             (2,069.88)             796.11
                     2,223.96             (1,544.42)             679.54
                     2,223.96             (1,544.42)             679.54
                     2,223.97             (1,544.42)             679.55
                     2,473.25             (1,511.44)             961.81
                     2,497.77             (1,387.65)           1,110.12
                     5,013.44             (1,949.68)           3,063.76
                     5,013.44             (1,949.68)           3,063.76
                     4,239.24             (1,177.57)           3,061.67
                     4,239.24             (1,177.57)           3,061.67
                     3,352.77               (651.93)           2,700.84
                     1,500.00               (541.67)             958.33
                     1,500.00               (541.67)             958.33
                     4,994.61             (4,855.87)             138.74
                     6,332.44             (5,804.73)             527.71
                     5,400.54             (4,950.50)             450.04
                     7,030.70             (6,054.22)             976.48
                    15,182.66            (10,121.78)           5,060.88
                     1,524.28             (1,058.52)             465.78
                     3,865.67             (2,469.74)           1,395.93
                     3,865.67             (2,469.74)           1,395.93
                     2,788.91             (1,549.40)           1,239.51
                     2,186.90             (1,032.71)           1,154.19
                     5,592.81             (1,211.77)           4,381.04
                     2,674.00               (401.10)           2,272.90
                    15,709.70             (6,022.06)           9,687.64
                     5,692.81             (1,211.77)           4,381.04
                     5,202.18             (4,624.17)             578.01
                     5,592.81             (1,211.77)           4,381.04
                     5,592.81             (1,211.77)           4,381.04
                     5,202.18             (4,624.17)             578.01
                     5,202.18             (4,624.17)             578.01
                     5,592.81             (1,211.77)           4,381.04
                     5,202.18             (4,624.17)             578.01
                     5,592.81             (1,211.77)           4,381.04
                     5,202.18             (4,624.17)             578.01
                     5,202.16             (4,624.13)             578.03
                     4,325.37             (3,724.63)             600.74
                     5,592.81             (1,211.77)           4,381.04
                     4,325.37             (3,724.63)             600.74
                     4,325.37             (3,724.63)             600.74
                     5,592.81             (1,211.77)           4,381.04

</TABLE>
<PAGE>   17
<TABLE>
<CAPTION>
<S>             <C>              <C>

  4,325.37       (3,724.63)          600.74
  5,592.81       (1,211.77)        4,381.04
  4,326.37       (3,724.63)          600.74
  4,325.38       (3,724.63)          600.75
  1,267.76         (528.23)          739.53
  4,325.37       (3,244.03)        1,081.34
  4,325.37       (3,244.03)        1,081.34
  3,425.80       (1,427.42)        1,998.38
  4,326.38       (3,244.03)        1,081.35
  3,669.10       (2,751.82)          917.26
  5,592.81       (1,211.77)        4,381.04
  1,530.11       (1,147.59)          382.52
  1,530.11       (1,147.59)          382.52
  5,592.81       (1,211.77)        4,381.04
  1,530.11       (1,147.59)          382.52
  3,669.10       (2,751.82)          917.28
151,014.95      (32,719.91)      118,295.04
  2,988.76       (1,909.48)        1,079.28
  3,669.10       (2,751.82)          917.28
  5,592.81       (1,211.77)        4,381.04
  3,669.09       (2,751.82)          917.27
  2,988.76       (1,909.48)        1,079.28
  4,416.43       (3,189.65)        1,226.78
  5,088.00       (3,307.20)        1,780.80
  1,399.20         (855.07)          544.13
 10,855.46       (7,056.04)        3,799.42
 55,446.25       (5,544.62)       49,901.63
  3,194.46       (1,331.03)        1,863.42
  2,278.47       (1,518.98)          759.49
  3,194.45       (1,331.03)        1,863.42
  8,566.58       (5,711.06)        2,855.52
  3,194.45       (1,331.03)        1,863.42
  2,593.63       (1,729.09)          864.54
  3,194.46       (1,331.03)        1,863.42
 15,974.84       (3,461.22)       12,513.62
  3,194.44       (1,331.01)        1,863.43
  4,121.15       (2,632.96)        1,488.19
  2,123.73         (530.94)        1,592.79
  4,121.16       (2,632.96)        1,488.20
  2,657.39       (1,771.60)          885.79
  4,496.52       (2,622.97)        1,873.56
  1,029.26         (600.40)          428.86
 22,811.48      (12,673.05)       10,138.43
  3,262.89       (1,812.72)        1,450.17
  9,659.49       (3,702.81)        5,956.68
  3,145.44       (1,747.47)        1,397.97
  2,238.73         (684.05)        1,554.68
  8,271.25       (4,365.38)        3,905.87
  2,526.98       (1,262.99)        1,262.99
</TABLE>
<PAGE>   18

 2,238.72         (684.05)        1,554.67
 4,330.99       (2,406.11)        1,924.88
15,709.70       (6,022.08)        9,587.64
 4,330.99       (2,406.11)        1,924.88
 3,553.96       (1,974.42)        1,579.54
 3,188.69       (1,151.48)        2,037.21
 6,066.32       (2,527.22)        3,538.10
 3,188.69       (1,151.48)        2,037.21
 3,541.21       (2,360.80)        1,180.41
 3,486.40       (2,324.27)        1,162.13
 2,381.39       (1,521.45)          859.94
 2,381.40       (1,521.45)          859.95
 3,600.79       (1,800.40)        1,800.39
18,981.08      (14,235.83)        4,745.25
 2,312.10       (1,156.06)        1,156.04
 3,600.79       (1,700.37)        1,900.42
15,974.84       (3,461.22)       12,513.62
15,974.84       (3,461.22)       12,513.62
15,709.70       (6,022.06)        9,687.64
 1,259.28         (314.83)          944.45
 4,033.99       (1,008.51)        3,025.48
 4,321.42       (2,760.91)        1,560.51
12,127.60       (3,840.41)        8,287.19
 4,963.74       (1,571.86)        3,391.88
53,723.05      (14,326.15)       39,396.90
 7,950.00       (2,120.00)        5,830.00
94,022.00      (21,938.47)       72,083.53
 3,005.10         (701.20)        2,303.90
53,424.00      (11,575.20)       41,848.80
16,790.38       (3,637.92)       13,152.46
15,708.70       (6,022.06)        9,687.64
40,038.11       (7,340.32)       32,697.79
 9,393.56       (2,035.27)        7,358.29
 5,592.86       (1,211.78)        4,381.08
 4,554.44       (2,909.79)        1,644.65
15,708.70       (6,022.06)        9,687.64
   254.74          (56.61)          198.13
 1,444.73         (321.06)        1,123.67
 1,444.73         (321.06)        1,123.67
 2,314.49         (514.34)        1,800.15
15,466.30       (3,436.96)       12,029.34
15,466.30       (3,436.96)       12,029.34
 2,994.90         (915.11)        2,079.79
 5,592.81       (1,211.77)        4,381.04
12,673.16       (4,928.46)        7,744.70
 1,542.94         (600.03)          942.91
 1,542.94         (600.03)          942.91
 1,542.94         (600.03)          942.91
 1,542.94         (600.03)          942.91
<PAGE>   19
<TABLE>
<CAPTION>

<S>                <C>             <C>
 1,542.92           (600.03)          942.89
 2,213.81           (860.94)        1,352.87
 2,213.81           (860.94)        1,352.87
 2,213.81           (860.94)        1,352.87
 2,213.81           (860.94)        1,352.87
 2,213.81           (860.94)        1,352.87
 2,213.81           (860.94)        1,352.87
 2,213.81           (860.94)        1,352.87
 2,213.81           (860.94)        1,352.87
 2,213.81           (860.94)        1,352.87
 2,213.81           (860.94)        1,352.87
 2,213.81           (860.94)        1,352.87
 2,213.81           (860.94)        1,352.87
 2,213.81           (860.94)        1,352.87
 2,213.81           (860.94)        1,352.87
 2,213.80           (860.92)        1,352.88
 3,262.01         (1,359.18)        1,902.83
 1,142.61           (476.09)          666.52
 1,142.61           (476.09)          666.52
 1,142.61           (476.09)          666.52
 1,142.61           (476.09)          666.52
 1,142.61           (476.09)          666.52
 1,142.61           (476.09)          666.52
 1,142.61           (476.09)          666.52
 1,142.61           (476.09)          666.52
 1,142.61           (476.09)          666.52
 1,142.57           (476.08)          666.49
 7,324.48         (3,051.86)        4,272.62
 1,670.49           (696.04)          974.45
 9,574.13         (2,659.49)        6,914.54
 9,574.13         (2,659.49)        6,914.54
 9,574.13         (2,659,49)        6,914.54
35,105.11         (9,751.42)       25,353.69
 2,635.29         (1,098.04)        1,537.25
 2,635.29         (1,098.04)        1,537.25
 2,635.29         (1,098.04)        1,537.25
 2,635.29         (1,098.04)        1,537.25
 2,635.29         (1,098.04)        1,537.25
 2,635.29         (1,098.04)        1,537.25
 2,635.29         (1,098.04)        1,537.25
 2,635.29         (1,098.04)        1,537.25
 2,635.29         (1,098.04)        1,537.25
 2,635.28         (1,098.04)        1,537.24
 1,038.80           (403.98)          634.82
 1,038.80           (403.98)          634.82
 1,038.80           (403.98)          634.82
 1,038.80           (403.98)          634.82
 1,038.80           (403.98)          634.82
 1,038.80           (403.98)          634.82

</TABLE>
<PAGE>   20
<TABLE>
<S>                <C>               <C>
    1,038.80           (403.98)         634.82
    1,038.80           (403.98)         634.82
    1,038.80           (403.98)         634.82
    1,038.80           (403.98)         634.82
    1,038.80           (403.98)         634.82
    1,038.80           (403.98)         634.82
    1,038.80           (403.98)         634.82
    1,038.80           (403.98)         634.82
    1,038.80           (403.98)         634.82
   26,984.60        (10,344.10)      16,640.50
   15,709.70         (6,022.06)       9,687.64
   15,709.70         (6,022.06)       9,687.64
   15,709.70         (6,022.06)       9,687.64
    2,686.11           (895.37)       1,790.74
    1,716.14           (524.38)       1,191.76
    8,087.80         (1,572.62)       6,515.18
    1,876.20           (364.82)       1,511.38
   15,709.74         (6,022.07)       9,687.67
    4,200.81         (1,516.96)       2,683.85
    3,352.78           (465.67)       2,887.11
    3,329.01         (1,387.09)       1,941.92
    3,329.01         (1,387.09)       1,941.92
    3,329.00         (1,387.09)       1,941.91
    3,287.76           (712.35)       2,575.41
    3,811.41         (2,281.65)       1,629.76
    4,498.28         (3,373.72)       1,124.56
    5,122.52         (3,841.90)       1,280.62
    1,187.20           (725.51)         461.69
    5,122.51         (3,841.88)       1,280.63
    2,360.27         (1,376.83)         983.44
    4,196.39           (174.85)       4,021.54
------------       -----------      ----------
1,478,793.14       (550,942.84)     927,850.30
============       ===========      ==========

</TABLE>
<PAGE>   21
                             CONSENT AND AMENDMENT

     This Consent and Amendment ("Amendment"), effective as of April 1, 1999
("Effective Date"), is made by and between Siemens Information and Communication
Networks, Inc., a corporation incorporated under the laws of Delaware, with its
principal office located at 900 Broken Sound Parkway,Boca Raton, Florida 33487
(hereinafter "Siemens" or "Assignor"), and Unisphere Solutions, Inc., a
corporation incorporated under the laws of Delaware, with its principal office
located at One Executive Drive, Chelmsford, Massachusetts 01824 ("Unisphere" or
"Assignee").

     WHEREAS, Siemens and Unisphere entered an Assignment and Assumption
Agreement effective as of April 1, 1999; and

     WHEREAS, Unisphere and Siemens have agreed to amend the Assignment and
Assumption Agreement to carry out the parties intentions.

     NOW THEREFORE, in consideration of the mutual promises and agreements by
the parties set forth herein, the parties agree as follows.

     1.   Section 2.1 (a) is replaced as follows.

Subject to the License Agreement at Section 2.4, all Intellectual Property and
Technology relating to, arising out of or used in the Business;

     2.   Add as Section 2.4:

LICENSE AGREEMENT. Assignor retains and the Assignee grants to Assignor a
nonexclusive, worldwide, paid-up, royalty-free, irrevocable license, for all
purposes, in the Intellectual Property and Technology assigned under this
Agreement, with the right to grant sublicenses of the same or lesser scope to
Subsidiaries of Assignor; Persons having Assignor as a Subsidiary; and
successors or assigns of Assignor.

     3.   In the event of any conflict, inconsistency, or incongruity between
the provisions of this Amendment, and any of the provisions of the Assignment
and Assumption Agreement, the provisions of this Amendment shall in all
respects govern and control.

     4.   It is expressly agreed by the parties that this Amendment is
supplemental to the Assignment and Assumption Agreement, which is by reference
made a part hereof, and all the terms, conditions, and provisions thereof,
unless specifically amended herein, are to apply to the Assignment and
Assumption Agreement, and this Amendment thereto as though they were expressly
written, incorporated, and included herein.

<PAGE>   22

     5.   This Amendment replaces any prior oral or written agreements or other
communications between the parties with respect to the subject matter of this
Amendment.

IN WITNESS WHEREOF, the parties have caused this Amendment to be duly
executed and agreed to effective as of the date indicated above.

SIEMENS INFORMATION AND
COMMUNICATION NETWORKS, INC.               UNISPHERE SOLUTIONS, INC.

By /s/ Dieter Diehn                         By /s/ George Donahue
  ---------------------------                 ---------------------------

Title: VP & CFO                             Title: VP & CFO
      -----------------------                     -----------------------Exhibit 4(A)

                  FORM OF AGREEMENT AND PLAN OF REORGANIZATION

     THIS AGREEMENT AND PLAN OF REORGANIZATION (the "Agreement") is made as of
this _____ day of _____________, 2001, by and between Pilgrim Mutual Funds, a
Delaware business trust ("Mutual Funds Trust") with its principal place of
business at 7337 E. Doubletree Ranch Road, Scottsdale, Arizona 85258, on behalf
of its series, Pilgrim Emerging Countries Fund (the "Acquiring Fund"), and
Pilgrim Mayflower Trust, a Massachusetts business trust ("Mayflower Trust") with
its principal place of business at 7337 E. Doubletree Ranch Road, Scottsdale,
Arizona 85258, on behalf of its series, Pilgrim Emerging Markets Value Fund (the
"Acquired Fund").

     This Agreement is intended to be and is adopted as a plan of reorganization
and liquidation within the meaning of Section 368(a)(1) of the United States
Internal Revenue Code of 1986, as amended (the "Code"). The reorganization (the
"Reorganization") will consist of the transfer of all of the assets of the
Acquired Fund to the Acquiring Fund in exchange solely for Class A, Class B and
Class C voting shares of beneficial interest (no par value per share) of the
Acquiring Fund (the "Acquiring Fund Shares"), the assumption by the Acquiring
Fund of all liabilities of the Acquired Fund, and the distribution of the
Acquiring Fund Shares to the shareholders of the Acquired Fund in complete
liquidation of the Acquired Fund as provided herein, all upon the terms and
conditions hereinafter set forth in this Agreement.

     WHEREAS, the Acquired Fund and the Acquiring Fund are open-end, registered
investment companies of the management type or a series thereof and the Acquired
Fund owns securities which generally are assets of the character in which the
Acquiring Fund is permitted to invest;

     WHEREAS, the Trustees of the Mutual Funds Trust have determined that the
exchange of all of the assets of the Acquired Fund for Acquiring Fund Shares and
the assumption of all liabilities of the Acquired Fund by the Acquiring Fund is
in the best interests of the Acquiring Fund and its shareholders and that the
interests of the existing shareholders of the Acquiring Fund would not be
diluted as a result of this transaction; and

     WHEREAS, the Trustees of the Mayflower Trust, have determined that the
exchange of all of the assets of the Acquired Fund for Acquiring Fund Shares and
the assumption of all liabilities of the Acquired Fund by the Acquiring Fund is
in the best interests of the Acquired Fund and its shareholders and that the
interests of the existing shareholders of the Acquired Fund would not be diluted
as a result of this transaction;

     NOW, THEREFORE, in consideration of the premises and of the covenants and
agreements hereinafter set forth, the parties hereto covenant and agree as
follows:

1.   TRANSFER OF ASSETS OF THE ACQUIRED FUND TO THE ACQUIRING FUND IN EXCHANGE
     FOR THE ACQUIRING FUND SHARES, THE ASSUMPTION OF ALL ACQUIRED FUND
     LIABILITIES AND THE LIQUIDATION OF THE ACQUIRED FUND

     1.1 Subject to the requisite approval of the Acquired Fund shareholders and
the other terms and conditions herein set forth and on the basis of the
representations and warranties contained herein, the Acquired Fund agrees to
transfer all of the Acquired Fund's assets, as set forth in paragraph 1.2, to
the Acquiring Fund, and the Acquiring Fund agrees in exchange therefor: (i) to
deliver to the Acquired Fund the number of full and fractional Class A, Class B
and Class C Acquiring Fund Shares determined by dividing the value of the
Acquired Fund's net assets with respect to each class, computed in the manner
and as of the time and date set forth in paragraph 2.1, by the net asset value
of one Acquiring Fund Share of the same class, computed in the manner and as of
the time and date set forth in paragraph 2.2; and (ii) to assume all liabilities
of the Acquired Fund as set forth in paragraph 1.3. Such transactions shall take
place at the closing provided for in paragraph 3.1 (the "Closing").

                                       1
<PAGE>
     1.2 The assets of the Acquired Fund to be acquired by the Acquiring Fund
shall consist of all assets and property, including, without limitation, all
cash, securities, commodities and futures interests and dividends or interests
receivable that are owned by the Acquired Fund and any deferred or prepaid
expenses shown as an asset on the books of the Acquired Fund on the closing date
provided for in paragraph 3.1 (the "Closing Date") (collectively, "Assets").

     1.3 The Acquired Fund will endeavor to discharge all of its known
liabilities and obligations prior to the Closing Date. The Acquiring Fund shall
also assume all of the liabilities of the Acquired Fund, whether accrued or
contingent, known or unknown, existing at the Valuation Date (collectively,
"Liabilities"). On or as soon as practicable prior to the Closing Date, the
Acquired Fund will declare and pay to its shareholders of record one or more
dividends and/or other distributions so that it will have distributed
substantially all (and in no event less than 98%) of its investment company
taxable income (computed without regard to any deduction for dividends paid) and
realized net capital gain, if any, for the current taxable year through the
Closing Date.

     1.4 Immediately after the transfer of assets provided for in paragraph 1.1,
the Acquired Fund will distribute to the Acquired Fund's shareholders of record
with respect to each class of its shares, determined as of immediately after the
close of business on the Closing Date (the "Acquired Fund Shareholders"), on a
pro rata basis within that class, the Acquiring Fund Shares of the same class
received by the Acquired Fund pursuant to paragraph 1.1, and will completely
liquidate. Such distribution and liquidation will be accomplished, with respect
to each class of the Acquired Fund's shares, by the transfer of the Acquiring
Fund Shares then credited to the account of the Acquired Fund on the books of
the Acquiring Fund to open accounts on the share records of the Acquiring Fund
in the names of the Acquired Fund Shareholders. The aggregate net asset value of
Class A, Class B and Class C Acquiring Fund Shares to be so credited to Class A,
Class B and Class C Acquired Fund Shareholders shall, with respect to each
class, be equal to the aggregate net asset value of the Acquired Fund shares of
that same class owned by such shareholders on the Closing Date. All issued and
outstanding shares of the Acquired Fund will simultaneously be canceled on the
books of the Acquired Fund, although share certificates representing interests
in Class A, Class B and Class C shares of the Acquired Fund will represent a
number of the same class of Acquiring Fund Shares after the Closing Date, as
determined in accordance with Section 2.3. The Acquiring Fund shall not issue
certificates representing the Class A, Class B and Class C Acquiring Fund Shares
in connection with such exchange.

     1.5 Ownership of Acquiring Fund Shares will be shown on the books of the
Acquiring Fund's transfer agent.

     1.6 Any reporting responsibility of the Acquired Fund including, but not
limited to, the responsibility for filing of regulatory reports, tax returns, or
other documents with the Securities and Exchange Commission (the "Commission"),
any state securities commission, and any federal, state or local tax authorities
or any other relevant regulatory authority, is and shall remain the
responsibility of the Acquired Fund.

2.   VALUATION

     2.1 The value of the Assets shall be the value of such assets computed as
of immediately after the close of business of the New York Stock Exchange and
after the declaration of any dividends on the Closing Date (such time and date
being hereinafter called the "Valuation Date"), using the valuation procedures
and then-current prospectus and statement of additional information with respect
to the Acquiring Fund, and valuation procedures established by the Acquiring
Fund's Board of Trustees.

     2.2 The net asset value of a Class A, Class B and Class C Acquiring Fund
Share shall be the net asset value per share computed with respect to that class
as of the Valuation Date, using the valuation procedures set forth in the
then-current prospectus and statement of additional information with respect to
the Acquiring Fund, and valuation procedures established by the Acquiring Fund's
Board of Trustees.

                                       2
<PAGE>
     2.3 The number of the Class A, Class B and Class C Acquiring Fund Shares to
be issued (including fractional shares, if any) in exchange for the Acquired
Fund's assets shall be determined with respect to each such class by dividing
the value of the net assets with respect to the Class A, Class B and Class C
shares of the Acquired Fund, as the case may be, determined using the same
valuation procedures referred to in paragraph 2.1, by the net asset value of an
Acquiring Fund Share, determined in accordance with paragraph 2.2.

     2.4 All computations of value shall be made by the Acquired Fund's
designated record keeping agent and shall be subject to confirmation by the
Acquiring Fund's record keeping agent and by each Fund's respective independent
accountants.

3.   CLOSING AND CLOSING DATE

     3.1 The Closing Date shall be _____ ___, 2001, or such other date as the
parties may agree to in writing. All acts taking place at the Closing shall be
deemed to take place simultaneously as of immediately after the close of
business on the Closing Date unless otherwise agreed to by the parties. The
close of business on the Closing Date shall be as of 4:00 p.m., Eastern Time.
The Closing shall be held at the offices of the Acquiring Fund or at such other
time and/or place as the parties may agree.

     3.2 The Acquired Fund shall direct State Street as custodian for the
Acquired Fund (the "Custodian"), to deliver, at the Closing, a certificate of an
authorized officer stating that (i) the Assets shall have been delivered in
proper form to the Acquiring Fund within two business days prior to or on the
Closing Date, and (ii) all necessary taxes in connection 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. The Acquired Fund's
portfolio securities represented by a certificate or other written instrument
shall be presented by the Acquired Fund Custodian to the custodian for the
Acquiring Fund for examination no later than five business days preceding the
Closing Date, and shall be transferred and delivered by the Acquired Fund as of
the Closing Date for the account of the Acquiring Fund duly endorsed in proper
form for transfer in such condition as to constitute good delivery thereof. The
Custodian shall deliver as of the Closing Date by book entry, in accordance with
the customary practices of any securities depository, as defined in Rule 17f-4
under the Investment Company Act of 1940, as amended (the "1940 Act"), in which
the Acquired Fund's Assets are deposited and the Custodian, the Acquired Fund's
Assets deposited with such depositories. The cash to be transferred by the
Acquired Fund shall be delivered by wire transfer of federal funds on the
Closing Date.

     3.3 The Acquired Fund shall direct DST Systems, Inc. (the "Transfer
Agent"), on behalf of the Acquired Fund, to deliver at the Closing a certificate
of an authorized officer stating that its records contain the names and
addresses of the Acquired Fund Shareholders and the number and percentage
ownership of outstanding Class A, Class B and Class C shares owned by each such
shareholder immediately prior to the Closing. The Acquiring Fund shall issue and
deliver a confirmation evidencing the Acquiring Fund Shares to be credited on
the Closing Date to the Secretary of the Acquiring Fund, or provide evidence
satisfactory to the Acquired Fund that such Acquiring Fund Shares have been
credited to the Acquired Fund's account on the books of the Acquiring Fund. At
the Closing each party shall deliver to the other such bills of sale, checks,
assignments, share certificates, if any, receipts or other documents as such
other party or its counsel may reasonably request.

     3.4 In the event that on the Valuation Date (a) the New York Stock Exchange
or another primary trading market for portfolio securities of the Acquiring Fund
or the Acquired Fund shall be closed to trading or trading thereupon shall be
restricted, or (b) trading or the reporting of trading on such Exchange or
elsewhere shall be disrupted so that, in the judgment of the Board of Trustees
of the Acquired Fund or the Board of TRUSTEES of the Acquiring Fund, accurate
appraisal of the value of the net assets of the Acquiring Fund or the Acquired
Fund is impracticable, the Closing Date shall be postponed until the first
business day after the day when trading shall have been fully resumed and
reporting shall have been restored.

                                       3
<PAGE>
4.   REPRESENTATIONS AND WARRANTIES

     4.1 Except has been disclosed to the Acquiring Fund in a written instrument
executed by an officer of the Mayflower Trust, the Mayflower Trust, on behalf of
the Acquired Fund, represents and warrants to the Mutual Funds Trust as follows:

     (a) The Acquired Fund is duly organized as a series of Pilgrim Mayflower
Trust, which is a business trust duly organized, validly existing and in good
standing under the laws of the State of Massachusetts with power under Mayflower
Trust's Declaration of Trust to own all of its properties and assets and to
carry on its business as it is now being conducted;

     (b) Pilgrim Mayflower Trust is a registered investment company classified
as a management company of the open-end type, and its registration with the
Commission as an investment company under the 1940 Act, and the registration of
shares of the Acquired Fund under the Securities Act of 1933, as amended ("1933
Act"), is in full force and effect;

     (c) No consent, approval, authorization, or order of any court or
governmental authority is required for the consummation by the Acquired Fund of
the transactions contemplated herein, except such as have been obtained under
the 1933 Act, the Securities Exchange Act of 1934, as amended (the "1934 Act")
and the 1940 Act and such as may be required by state securities laws;

     (d) The current prospectus and statement of additional information of the
Acquired Fund and each prospectus and statement of additional information of the
Acquired Fund used during the three years previous to the date of this Agreement
conforms or conformed at the time of its use in all material respects to the
applicable requirements of the 1933 Act and the 1940 Act and the rules and
regulations of the Commission thereunder and does not or did not at the time of
its use include any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
materially misleading;

     (e) On the Closing Date, the Acquired Fund will have good and marketable
title the Assets and full right, power, and authority to sell, assign, transfer
and deliver such assets hereunder free of any liens or other encumbrances, and
upon delivery and payment for such Assets, the Acquiring Fund will acquire good
and marketable title thereto, subject to no restrictions on the full transfer
thereof, including such restrictions as might arise under the 1933 Act, other
than as disclosed to the Acquiring Fund;

     (f) The Acquired Fund is not engaged currently, and the execution, delivery
and performance of this Agreement will not result, in (i) a material violation
of the Mayflower Trust's Declaration of Trust or By-Laws or of any agreement,
indenture, instrument, contract, lease or other undertaking to which the
Mayflower Trust, on behalf of the Acquired Fund, is a party or by which it is
bound, or (ii) the acceleration of any obligation, or the imposition of any
penalty, under any agreement, indenture, instrument, contract, lease, judgment
or decree to which the Mayflower Trust, on behalf of the Acquired Fund, is a
party or by which it is bound;

     (g) All material contracts or other commitments of the Acquired Fund (other
than this Agreement and certain investment contracts including options, futures,
and forward contracts) will terminate without liability to the Acquired Fund on
or prior to the Closing Date;

     (h) Except as otherwise disclosed in writing to and accepted by the Mutual
Funds Trust, on behalf of the Acquiring Fund, no litigation or administrative
proceeding or investigation of or before any court or governmental body is
presently pending or, to its knowledge, threatened against the Acquired Fund or
any of its properties or assets that, if adversely determined, would materially
and adversely affect Acquired Fund's financial condition or the conduct of its
business. The Mayflower Trust, on behalf of the Acquired Fund, knows of no facts
which might form the basis for the institution of such proceedings and is not a
party to or subject to the provisions of any order, decree or judgment of any
court or governmental body which materially and adversely affects its business
or the Acquired Fund's ability to consummate the transactions herein
contemplated;

                                       4
<PAGE>
     (i) The Statement of Assets and Liabilities, Statements of Operations and
Changes in Net Assets, and Schedule of Investments of the Acquired Fund at
October 31, 1999, have been audited by PricewaterhouseCoopers LLP independent
accountants, and are in accordance with generally accepted accounting principles
("GAAP") consistently applied, and such statements (copies of which have been
furnished to the Acquiring Fund) present fairly, in all material respects, the
financial condition of the Acquired Fund as of such date in accordance with
GAAP, and there are no known contingent liabilities of the Acquired Fund
required to be reflected on a balance sheet (including the notes thereto) in
accordance with GAAP as of such date not disclosed therein;

     (j) Since October 31, 1999, there has not been any material adverse change
in the Acquired Fund's financial condition, assets, liabilities or business,
other than changes occurring in the ordinary course of business, or any
incurrence by the Acquired Fund of indebtedness maturing more than one year from
the date such indebtedness was incurred, except as otherwise disclosed to and
accepted by the Acquiring Fund. For the purposes of this subparagraph (j), a
decline in net asset value per share of the Acquired Fund due to declines in
market values of securities in the Acquired Fund's portfolio, the discharge of
Acquired Fund liabilities, or the redemption of Acquired Fund Shares by
shareholders of the Acquired Fund shall not constitute a material adverse
change;

     (k) On the Closing Date, all Federal and other tax returns, dividend
reporting forms, and other tax-related reports of the Acquired Fund required by
law to have been filed by such date (including any extensions) shall have been
filed and are or will be correct in all material respects, and all Federal and
other taxes shown as due or required to be shown as due on said returns and
reports shall have been paid or provision shall have been made for the payment
thereof, and to the best of the Acquired Fund's knowledge, no such return is
currently under audit and no assessment has been asserted with respect to such
returns;

     (l) For each taxable year of its operation (including the taxable year
ending on the Closing Date), the Acquired Fund has met the requirements of
Subchapter M of the Code for qualification as a regulated investment company,
has been (or will be) eligible to and has computed (or will compute) its federal
income tax under Section 852 of the Code, and will have distributed all of its
investment company taxable income and net capital gain (as defined in the Code)
that has accrued through the Closing Date, and before the Closing Date will have
declared dividends sufficient to distribute all of its investment company
taxable income and net capital gain for the period ending on the Closing Date;

     (m) All issued and outstanding shares of the Acquired Fund are, and on the
Closing Date will be, duly and validly issued and outstanding, fully paid and
non-assessable by the Mayflower Trust (recognizing that, under Massachusetts
law, it is theoretically possible that shareholders of the Acquired Fund could,
under certain circumstances, be held personally liable for obligations of the
Acquired Fund) and have been offered and sold in every state and the District of
Columbia in compliance in all material respects with applicable registration
requirements of the 1933 Act and state securities laws. All of the issued and
outstanding shares of the Acquired Fund will, at the time of Closing, be held by
the persons and in the amounts set forth in the records of the Transfer Agent,
on behalf of the Acquired Fund, as provided in paragraph 3.3. The Acquired Fund
does not have outstanding any options, warrants or other rights to subscribe for
or purchase any of the shares of the Acquired Fund, nor is there outstanding any
security convertible into any of the Acquired Fund shares;

     (n) The execution, delivery and performance of this Agreement will have
been duly authorized prior to the Closing Date by all necessary action, if any,
on the part of the Trustees of the Mayflower Trust, on behalf of the Acquired
Fund, and, subject to the approval of the shareholders of the Acquired Fund,
this Agreement will constitute a valid and binding obligation of the Acquired
Fund, enforceable in accordance with its terms, subject, as to enforcement, to
bankruptcy, insolvency, reorganization, moratorium and other laws relating to or
affecting creditors' rights and to general equity principles;

                                       5
<PAGE>
     (o) The information to be furnished by the Acquired Fund for use in
registration statements, proxy materials and other documents filed or to be
filed with any federal, state or local regulatory authority (including the
National Association of Securities Dealers, Inc.), which may be necessary in
connection with the transactions contemplated hereby, shall be accurate and
complete in all material respects and shall comply in all material respects with
Federal securities and other laws and regulations thereunder applicable thereto;
and

     (p) The proxy statement of the Acquired Fund (the "Proxy Statement") to be
included in the Registration Statement referred to in paragraph 5.6, insofar as
it relates to the Acquired Fund, will, on the effective date of the Registration
Statement and on the Closing Date (i) not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which such statements were made, not materially misleading provided, however,
that the representations and warranties in this subparagraph (p) shall not apply
to statements in or omissions from the Proxy Statement and the Registration
Statement made in reliance upon and in conformity with information that was
furnished by the Acquiring Fund for use therein, and (ii) comply in all material
respects with the provisions of the 1933 Act, the 1934 Act and the 1940 Act and
the rules and regulations thereunder.

     4.2 Except has been disclosed to the Acquiring Fund in a written instrument
executed by an officer of Mutual Funds Trust, Mutual Funds Trust, on behalf of
the Acquiring Fund, represents and warrants to the Mayflower Trust as follows:

     (a) The Acquiring Fund is duly organized as a series of Mutual Funds Trust,
which is a business trust duly organized, validly existing and in good standing
under the laws of the State of Delaware with power under Mutual Funds Trust's
Declaration of Trust to own all of its properties and assets and to carry on its
business as it is now being conducted;

     (b) Mutual Funds Trust is a registered investment company classified as a
management company of the open-end type, and its registration with the
Commission as an investment company under the 1940 Act and the registration of
shares of the Acquiring Fund under the 1933 Act, is in full force and effect;

     (c) No consent, approval, authorization, or order of any court or
governmental authority is required for the consummation by the Acquiring Fund of
the transactions contemplated herein, except such as have been obtained under
the 1933 Act, the 1934 Act and the 1940 Act and such as may be required by state
securities laws;

     (d) The current prospectus and statement of additional information of the
Acquiring Fund and each prospectus and statement of additional information of
the Acquiring Fund used during the three years previous to the date of this
Agreement conforms or conformed at the time of its use in all material respects
to the applicable requirements of the 1933 Act and the 1940 Act and the rules
and regulations of the Commission thereunder and does not or did not at the time
of its use include any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
materially misleading;

     (e) On the Closing Date, the Acquiring Fund will have good and marketable
title to the Acquiring Fund's assets, free of any liens of other encumbrances,
except those liens or encumbrances as to which the Acquired Fund has received
notice and necessary documentation at or prior to the Closing;

     (f) The Acquiring Fund is not engaged currently, and the execution,
delivery and performance of this Agreement will not result, in (i) a material
violation of Mutual Funds Trust's Declaration of Trust or By-Laws or of any
agreement, indenture, instrument, contract, lease or other undertaking to which
Mutual Funds Trust, on behalf of the Acquiring Fund, is a party or by which it
is bound, or (ii) the acceleration of any obligation, or the imposition of any
penalty, under any agreement, indenture, instrument, contract, lease, judgment
or decree to which the Mutual Funds Trust, on behalf of the Acquiring Fund, is a
party or by which it is bound;

                                       6
<PAGE>
     (g) Except as otherwise disclosed in writing to and accepted by Mayflower
Trust, on behalf of the Acquired Fund, no litigation or administrative
proceeding or investigation of or before any court or governmental body is
presently pending or, to its knowledge, threatened against the Acquiring Fund or
any of its properties or assets that, if adversely determined, would materially
and adversely affect the Acquiring Fund's financial condition or the conduct of
its business. Mutual Funds Trust, on behalf of the Acquiring Fund, knows of no
facts which might form the basis for the institution of such proceedings and is
not a party to or subject to the provisions of any order, decree or judgment of
any court or governmental body which materially and adversely affects the
Acquiring Fund's business or ability to consummate the transactions herein
contemplated;

     (h) The Statement of Assets and Liabilities, Statements of Operations and
Changes in Net Assets and Schedule of Investments of the Acquiring Fund at June
30, 2000, have been audited by KPMG LLP, independent accountants, and are in
accordance with GAAP consistently applied, and such statements (copies of which
have been furnished to the Acquired Fund) present fairly, in all material
respects, the financial condition of the Acquiring Fund as of such date in
accordance with GAAP, and there are no known contingent liabilities of the
Acquiring Fund required to be reflected on a balance sheet (including the notes
thereto) in accordance with GAAP as of such date not disclosed therein;

     (i) Since June 30, 2000, there has not been any material adverse change in
the Acquiring Fund's financial condition, assets, liabilities or business, other
than changes occurring in the ordinary course of business, or any incurrence by
the Acquiring Fund of indebtedness maturing more than one year from the date
such indebtedness was incurred, except as otherwise disclosed to and accepted by
the Acquired Fund. For purposes of this subparagraph (i), a decline in net asset
value per share of the Acquiring Fund due to declines in market values of
securities in the Acquiring Fund's portfolio, the discharge of Acquiring Fund
liabilities, or the redemption of Acquiring Fund Shares by shareholders of the
Acquiring Fund, shall not constitute a material adverse change;

     (j) On the Closing Date, all Federal and other tax returns, dividend
reporting forms, and other tax-related reports of the Acquiring Fund required by
law to have been filed by such date (including any extensions) shall have been
filed and are or will be correct in all material respects, and all Federal and
other taxes shown as due or required to be shown as due on said returns and
reports shall have been paid or provision shall have been made for the payment
thereof, and to the best of the Acquiring Fund's knowledge no such return is
currently under audit and no assessment has been asserted with respect to such
returns;

     (k) For each taxable year of its operation (including the taxable year
including the Closing Date), the Acquiring Fund has met (or will meet) the
requirements of Subchapter M of the Code for qualification as a regulated
investment company, and has been eligible to and has computed (or will compute)
its federal income tax under Section 852 of the Code;

     (l) All issued and outstanding Acquiring Fund Shares are, and on the
Closing Date will be, duly and validly issued and outstanding, fully paid and
non-assessable by the Mutual Funds Trust and have been offered and sold in every
state and the District of Columbia in compliance in all material respects with
applicable registration requirements of the 1933 Act and state securities laws.
The Acquiring Fund does not have outstanding any options, warrants or other
rights to subscribe for or purchase any Acquiring Fund Shares, nor is there
outstanding any security convertible into any Acquiring Fund Shares;

     (m) The execution, delivery and performance of this Agreement will have
been fully authorized prior to the Closing Date by all necessary action, if any,
on the part of the Trustees of Mutual Funds Trust, on behalf of the Acquiring
Fund, and this Agreement will constitute a valid and binding obligation of the
Acquiring Fund, enforceable in accordance with its terms, subject, as to
enforcement, to bankruptcy, insolvency, reorganization, moratorium and other
laws relating to or affecting creditors' rights and to general equity
principles;

                                       7
<PAGE>
     (n) The Class A, Class B and Class C Fund Shares to be issued and delivered
to the Acquired Fund, for the account of the Acquired Fund Shareholders,
pursuant to the terms of this Agreement, will on the Closing Date have been duly
authorized and, when so issued and delivered, will be duly and validly issued
Acquiring Fund Shares, and will be fully paid and non-assessable by Mutual Funds
Trust;

     (o) The information to be furnished by the Mutual Funds Trust for use in
the registration statements, proxy materials and other documents that may be
necessary in connection with the transactions contemplated hereby shall be
accurate and complete in all material respects and shall comply in all material
respects with Federal securities and other laws and regulations applicable
thereto; and

     (p) That insofar as it relates to the Acquiring Fund, the Registration
Statement relating to the Acquiring Fund Shares issuable hereunder, and the
proxy materials of the Acquired Fund to be included in the Registration
Statement, and any amendment or supplement to the foregoing, will, from the
effective date of the Registration Statement through the date of the meeting of
shareholders of the Acquired Fund contemplated therein (i) not contain any
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein, in light of the
circumstances under which such statements were made, not misleading provided,
however, that the representations and warranties in this subparagraph (p) shall
not apply to statements in or omissions from the Registration Statement made in
reliance upon and in conformity with information that was furnished by the
Acquired Fund for use therein, and (ii) comply in all material respects with the
provisions of the 1933 Act, the 1934 Act and the 1940 Act and the rules and
regulations thereunder.

5.   COVENANTS OF THE ACQUIRING FUND AND THE ACQUIRED FUND

     5.1 The Acquiring Fund and the Acquired Fund each will operate its business
in the ordinary course between the date hereof and the Closing Date, it being
understood that such ordinary course of business will include the declaration
and payment of customary dividends and distributions, and any other distribution
that may be advisable.

     5.2 The Acquired Fund will call a meeting of the shareholders of the
Acquired Fund to consider and act upon this Agreement and to take all other
action necessary to obtain approval of the transactions contemplated herein.

     5.3 The Acquired Fund covenants that the Class A, Class B and Class C
Acquiring Fund Shares to be issued hereunder are not being acquired for the
purpose of making any distribution thereof, other than in accordance with the
terms of this Agreement.

     5.4 The Acquired Fund will assist the Acquiring Fund in obtaining such
information as the Acquiring Fund reasonably requests concerning the beneficial
ownership of the Acquired Fund shares.

     5.5 Subject to the provisions of this Agreement, the Acquiring Fund and the
Acquired Fund will each take, or cause to be taken, all action, and do or cause
to be done, all things reasonably necessary, proper or advisable to consummate
and make effective the transactions contemplated by this Agreement.

     5.6 The Acquired Fund will provide the Acquiring Fund with information
reasonably necessary for the preparation of a prospectus (the "Prospectus")
which will include the Proxy Statement referred to in paragraph 4.1(p), all to
be included in a Registration Statement on Form N-14 of the Acquiring Fund (the
"Registration Statement"), in compliance with the 1933 Act, the 1934 Act and the
1940 Act, in connection with the meeting of the shareholders of the Acquired
Fund to consider approval of this Agreement and the transactions contemplated
herein.

                                       8
<PAGE>
     5.7 As soon as is reasonably practicable after the Closing, the Acquired
Fund will make a liquidating distribution to its shareholders consisting of the
Class A, Class B and Class C Acquiring Fund Shares received at the Closing.

     5.8 The Acquiring Fund and the Acquired Fund shall each use its reasonable
best efforts to fulfill or obtain the fulfillment of the conditions precedent to
effect the transactions contemplated by this Agreement as promptly as
practicable.

     5.9 Mayflower Trust, on behalf of the Acquired Fund, covenants that
Mayflower Trust will, from time to time, as and when reasonably requested by the
Acquiring Fund, execute and deliver or cause to be executed and delivered all
such assignments and other instruments, and will take or cause to be taken such
further action as Mutual Funds Trust, on behalf of the Acquiring Fund, may
reasonably deem necessary or desirable in order to vest in and confirm (a)
Mayflower Trust's, on behalf of the Acquired Fund's, title to and possession of
the Acquiring Fund shares to be delivered hereunder, and (b) Mutual Funds
Trust's, on behalf of the Acquiring Fund's, title to and possession of all the
assets and otherwise to carry out the intent and purpose of this Agreement.

     5.10 The Acquiring Fund will use all reasonable efforts to obtain the
approvals and authorizations required by the 1933 Act, the 1940 Act and such of
the state blue sky or securities laws as may be necessary in order to continue
its operations after the Closing Date.

6.   CONDITIONS PRECEDENT TO OBLIGATIONS OF THE ACQUIRED FUND

     The obligations of Mayflower Trust, on behalf of the Acquired Fund, to
consummate the transactions provided for herein shall be subject, at the
Mayflower Trust's election, to the performance by Mutual Funds Trust, on behalf
of the Acquiring Fund, of all the obligations to be performed by it hereunder on
or before the Closing Date, and, in addition thereto, the following further
conditions:

     6.1 All representations and warranties of Mutual Funds Trust, on behalf of
the Acquiring Fund, contained in this Agreement shall be true and correct in all
material respects as of the date hereof and, except as they may be affected by
the transactions contemplated by this Agreement, as of the Closing Date, with
the same force and effect as if made on and as of the Closing Date;

     6.2 Mutual Funds Trust shall have delivered to the Mayflower Trust a
certificate executed in its name by its President or Vice President and its
Treasurer or Assistant Treasurer, in a form reasonably satisfactory to the
Mayflower Trust and dated as of the Closing Date, to the effect that the
representations and warranties of the Mutual Funds Trust, on behalf of the
Acquiring Fund, made in this Agreement are true and correct at and as of the
Closing Date, except as they may be affected by the transactions contemplated by
this Agreement and as to such other matters as the Mayflower Trust shall
reasonably request;

     6.3 Mutual Funds Trust, on behalf of the Acquiring Fund, shall have
performed all of the covenants and complied with all of the provisions required
by this Agreement to be performed or complied with by the Mutual Funds Trust, on
behalf of the Acquiring Fund, on or before the Closing Date; and

     6.4 The Acquired Fund and the Acquiring Fund shall have agreed on the
number of full and fractional Acquiring Fund Shares of each Class to be issued
in connection with the Reorganization after such number has been calculated in
accordance with paragraph 1.1.

                                       9
<PAGE>
7.   CONDITIONS PRECEDENT TO OBLIGATIONS OF THE ACQUIRING FUND

     The obligations of Mutual Funds Trust, on behalf of the Acquiring Fund, to
complete the transactions provided for herein shall be subject, at Mutual Funds
Trust's election, to the performance by Mayflower Trust, on behalf of the
Acquired Fund, of all of the obligations to be performed by it hereunder on or
before the Closing Date and, in addition thereto, the following conditions:

     7.1 All representations and warranties of Mayflower Trust, on behalf of the
Acquired Fund, contained in this Agreement shall be true and correct in all
material respects as of the date hereof and, except as they may be affected by
the transactions contemplated by this Agreement, as of the Closing Date, with
the same force and effect as if made on and as of the Closing Date;

     7.2 Mayflower Trust shall have delivered to the Acquiring Fund a statement
of the Acquired Fund's assets and liabilities, as of the Closing Date, certified
by the Treasurer of the Mayflower Trust;

     7.3 Mayflower Trust shall have delivered to the Acquiring Fund on the
Closing Date a certificate executed in its name by its President or Vice
President and its Treasurer or Assistant Treasurer, in form and substance
satisfactory to Mutual Funds Trust and dated as of the Closing Date, to the
effect that the representations and warranties of Mayflower Trust, on behalf of
the Acquired Fund, made in this Agreement are true and correct at and as of the
Closing Date, except as they may be affected by the transactions contemplated by
this Agreement, and as to such other matters as Mutual Funds Trust shall
reasonably request;

     7.4 Mayflower Trust, on behalf of the Acquired Fund, shall have performed
all of the covenants and complied with all of the provisions required by this
Agreement to be performed or complied with by Mayflower Trust, on behalf of the
Acquired Fund, on or before the Closing Date;

     7.5 The Acquired Fund and the Acquiring Fund shall have agreed on the
number of full and fractional Acquiring Fund Shares of each Class to be issued
in connection with the Reorganization after such number has been calculated in
accordance with paragraph 1.1; and

     7.6 The Acquired Fund shall have declared and paid a distribution or
distributions prior to the Closing that, together with all previous
distributions, shall have the effect of distributing to its shareholders (i) all
of its investment company taxable income and all of its net realized capital
gains, if any, for the period from the close of its last fiscal year to 4:00
p.m. Eastern time on the Closing; and (ii) any undistributed investment company
taxable income and net realized capital gains from any period to the extent not
otherwise already distributed.

8.   FURTHER CONDITIONS PRECEDENT TO OBLIGATIONS OF THE ACQUIRING FUND AND
     THE ACQUIRED FUND

     If any of the conditions set forth below have not been satisfied on or
before the Closing Date with respect to Mayflower Trust, on behalf of the
Acquired Fund, or Mutual Funds Trust, on behalf of the Acquiring Fund, the other
party to this Agreement shall, at its option, not be required to consummate the
transactions contemplated by this Agreement:

     8.1 The Agreement and the transactions contemplated herein shall have been
approved by the requisite vote of the holders of the outstanding shares of the
Acquired Fund in accordance with the provisions of Mayflower Trust's Declaration
of Trust, By-Laws, applicable Massachusetts law and the 1940 Act, and certified
copies of the resolutions evidencing such approval shall have been delivered to
the Acquiring Fund. Notwithstanding anything herein to the contrary, neither
Mutual Funds Trust nor Mayflower Trust may waive the conditions set forth in
this paragraph 8.1;

                                       10
<PAGE>
     8.2 On the Closing Date no action, suit or other proceeding shall be
pending or, to its knowledge, threatened before any court or governmental agency
in which it is sought to restrain or prohibit, or obtain damages or other relief
in connection with, this Agreement or the transactions contemplated herein;

     8.3 All consents of other parties and all other consents, orders and
permits of Federal, state and local regulatory authorities deemed necessary by
Mutual Funds Trust or Mayflower Trust to permit consummation, in all material
respects, of the transactions contemplated hereby shall have been obtained,
except where failure to obtain any such consent, order or permit would not
involve a risk of a material adverse effect on the assets or properties of the
Acquiring Fund or the Acquired Fund, provided that either party hereto may for
itself waive any of such conditions;

     8.4 The Registration Statement shall have become effective under the 1933
Act and no stop orders suspending the effectiveness thereof shall have been
issued and, to the best knowledge of the parties hereto, no investigation or
proceeding for that purpose shall have been instituted or be pending, threatened
or contemplated under the 1933 Act; and

     8.5 The parties shall have received the opinion of Dechert addressed to
Mutual Funds Trust and Mayflower Trust substantially to the effect that, based
upon certain facts, assumptions, and representations, the transaction
contemplated by this Agreement shall constitute a tax-free reorganization for
Federal income tax purposes. The delivery of such opinion is conditioned upon
receipt by Dechert of representations it shall request of Mutual Funds Trust and
Mayflower Trust. Notwithstanding anything herein to the contrary, neither Mutual
Funds Trust nor Mayflower Trust may waive the condition set forth in this
paragraph 8.5.

9.   BROKERAGE FEES AND EXPENSES

     9.1 Mutual Funds Trust, on behalf of the Acquiring Fund, and Mayflower
Trust, on behalf of the Acquired Fund, represent and warrant to each other that
there are no brokers or finders entitled to receive any payments in connection
with the transactions provided for herein.

     9.2 The expenses relating to the proposed Reorganization will be shared so
that (1) half of such costs are borne by the investment adviser to the Acquired
and Acquiring Funds, and (2) half are borne by the Acquired and Acquiring Funds
and will be paid by the Acquired Fund and Acquiring Fund pro rata based upon the
relative net assets of the Acquiring Fund and Acquired Fund as of the close of
business on the record date for determining the shareholders of the Acquired
Fund entitled to vote on the Reorganization. The costs of the Reorganization
shall include, but not be limited to, costs associated with obtaining any
necessary order of exemption from the 1940 Act, preparation of the Registration
Statement, printing and distributing the Acquiring Fund's prospectus and the
Acquired Fund's proxy materials, legal fees, accounting fees, securities
registration fees, and expenses of holding shareholders' meetings.
Notwithstanding any of the foregoing, expenses will in any event be paid by the
party directly incurring such expenses if and to the extent that the payment by
another person of such expenses would result in the disqualification of such
party as a "regulated investment company" within the meaning of Section 851 of
the Code.

10.  ENTIRE AGREEMENT; SURVIVAL OF WARRANTIES

     10.1 Mutual Funds Trust and Mayflower Trust agree that neither party has
made any representation, warranty or covenant not set forth herein and that this
Agreement constitutes the entire agreement between the parties.

     10.2 The representations, warranties and covenants contained in this
Agreement or in any document delivered pursuant hereto or in connection herewith
shall survive the consummation of the transactions contemplated hereunder. The
covenants to be performed after the Closing shall survive the Closing.

                                       11
<PAGE>
11.  TERMINATION

     This Agreement and the transactions contemplated hereby may be terminated
and abandoned by resolution of the Board of Trustees of the Acquired Fund or the
Board of Trustees of the Acquiring Fund at any time prior to the Closing Date,
if circumstances should develop that, in the opinion of the Board, make
proceeding with the Agreement inadvisable.

12.  AMENDMENTS

     This Agreement may be amended, modified or supplemented in such manner as
may be deemed necessary or advisable by the authorized officers of Mutual Funds
Trust and Mayflower Trust; provided, however, that following the meeting of the
shareholders of the Acquired Fund called by Mayflower Trust pursuant to
paragraph 5.2 of this Agreement, no such amendment may have the effect of
changing the provisions for determining the number of the Class A, Class B and
Class C Acquiring Fund Shares to be issued to the Acquired Fund Shareholders
under this Agreement to the detriment of such shareholders without their further
approval.

13.  NOTICES

     Any notice, report, statement or demand required or permitted by any
provisions of this Agreement shall be in writing and shall be given by
facsimile, personal service or prepaid or certified mail addressed to Mutual
Funds Trust or Mayflower Trust, 7337 E. Doubletree Ranch Road, Scottsdale,
Arizona 85258, attn: James M. Hennessy, in each case with a copy to Dechert,
1775 Eye Street, N.W., Washington, D.C. 20006, attn: Jeffrey S. Puretz.

14.  HEADINGS; COUNTERPARTS; GOVERNING LAW; ASSIGNMENT; LIMITATION OF
     LIABILITY

     14.1 The Article and paragraph headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

     14.2 This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original.

     14.3 This Agreement shall be governed by and construed in accordance with
the laws of the State of Delaware without regard to its principles of conflicts
of laws.

     14.4 This Agreement shall bind and inure to the benefit of the parties
hereto and their respective successors and assigns, but no assignment or
transfer hereof or of any rights or obligations hereunder shall be made by any
party without the written consent of the other party. Nothing herein expressed
or implied is intended or shall be construed to confer upon or give any person,
firm or corporation, other than the parties hereto and their respective
successors and assigns, any rights or remedies under or by reason of this
Agreement.

     14.5 It is expressly agreed that the obligations of the parties hereunder
shall not be binding upon any of the Trustees, shareholders, nominees, officers,
agents, or employees of Mutual Funds Trust or Mayflower Trust personally, but
shall bind only the trust property of such the Acquiring Fund or the Acquired
Fund as provided in the Declaration of Trust of Mutual Funds Trust or Mayflower
Trust. The execution and delivery by such officers shall not be deemed to have
been made by any of them individually or to impose any liability on any of them
personally, but shall bind only the trust property of each party as provided in
the Declaration of Trust of each party.

                                       12
<PAGE>
IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be
executed by its President or Vice President and its seal to be affixed thereto
and attested by its Secretary or Assistant Secretary.

                                      PILGRIM MUTUAL FUNDS, on behalf of its
Attest:                               PILGRIM EMERGING COUNTRIES FUND series
_______________________________
SECRETARY                             By: _______________________________
                                      Its: ______________________________

                                      PILGRIM MAYFLOWER TRUST, on behalf of its
Attest:                               PILGRIM EMERGING MARKETS VALUE FUND series
_______________________________
SECRETARY                             By: _______________________________
                                      Its: ______________________________

                                       13

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