Exhibit 99.(n)(iv)
The following
FORM OF RULE 12b-1 DISTRIBUTION PLAN AND AGREEMENT
for
CLASS P
was adopted by
LORD XXXXXX VALUE OPPORTUNITIES FUND
A substantially identical plan was adopted by the following Funds or Series of
LORD XXXXXX SECURITIES TRUST:
on the date indicated
Alpha Strategy Fund (August 15, 2001)
Lord Xxxxxx All Value Fund August 15, 2001)
International Opportunities Fund (March 9, 1999)
Lord Xxxxxx Large-Cap Value Fund (June 30, 2003)
Lord Xxxxxx International Core Equity Fund (December 1, 2003)
1
RULE 00x-0 XXXXXXXXXXXX XXXX XXX XXXXXXXXX
XXXX XXXXXX SECURITIES TRUST - LORD XXXXXX LARGE-CAP VALUE FUND
CLASS P SHARES
RULE 12b-1 DISTRIBUTION PLAN AND AGREEMENT dated as of June 30, 2003
by and between LORD XXXXXX SECURITIES TRUST, a Delaware business trust (the
"Trust"), on behalf of LORD XXXXXX VALUE OPPORTUNITIES FUND, (the "Fund"), and
LORD XXXXXX DISTRIBUTOR LLC, a New York limited liability company (the
"Distributor").
WHEREAS, the Trust is an open-end management investment company
registered under the Investment Company Act of 1940, as amended (the "Act"); and
the Distributor is the exclusive selling agent of the Trust's shares of
beneficial interest, including the Fund's Class P shares (the "Shares"),
pursuant to the Distribution Agreement between the Trust and the Distributor,
and
WHEREAS, the Trust desires to adopt a Distribution Plan and Agreement
(the "Plan") for the Fund's Shares with the Distributor, as permitted by Rule
12b-1 under the Act, pursuant to which the Fund may make certain payments to the
Distributor for payment to institutions and persons permitted by applicable law
and/or rules to receive such payments ("Authorized Institutions") in connection
with sales of Shares and for use by the Distributor as provided in paragraph 3
of this Plan, and
WHEREAS, the Trust's Board of Trustees has determined that there is a
reasonable likelihood that the Plan will benefit the Fund and the holders of the
Shares.
NOW, THEREFORE, in consideration of the mutual covenants and of other
good and valuable consideration, receipt of which is hereby acknowledged, it is
agreed as follows:
1. The Trust hereby authorizes the Distributor to enter into
agreements with Authorized Institutions (the "Agreements") which may provide for
the payment to such Authorized Institutions of distribution and service fees
which the Distributor receives from the Fund in order to provide incentives to
such Authorized Institutions (i) to sell Shares and (ii) to provide continuing
information and investment services to their accounts holding Shares and
otherwise to encourage their accounts to remain invested in the Shares. The
Distributor may, from time to time, waive or defer payment of some fees payable
at the time of the sale of Shares provided for under paragraph 2 hereof.
2. Subject to possible reduction as provided below in this
paragraph 2, the Fund shall pay to the Distributor fees at each quarter-end (a)
for services, at an annual rate not to exceed .20% of 1% of the average annual
net asset value of Shares outstanding for the quarter or more and (b) for
distribution, at an annual rate not to exceed .25 of 1% of the average annual
net asset value of Shares outstanding for the quarter or more. For purposes of
the quarter-end fee payments above (A) Shares issued pursuant to an exchange for
shares of another series of the Trust or another Lord Xxxxxx-sponsored fund (or
for shares of a fund acquired by the Trust) will be credited with the time held
from the initial purchase of such other shares when determining how long Shares
mentioned in clauses (a) and (b) have been outstanding and (B) payments will be
based on Shares outstanding
2
during any such quarter. Shares outstanding in clauses (a) and (b) above include
Shares issued for reinvested dividends and distributions that have been
outstanding for the quarter or more.
The Board of Trustees of the Trust shall from time to time
determine the amounts and the time of payments (such as, at the time of sale,
quarterly or otherwise), within the foregoing maximum amounts, that the Fund may
pay the Distributor hereunder. Such determinations by the Board of Trustees
shall be made by votes of the kind referred to in paragraph 10 of this Plan. The
service fees mentioned in this paragraph are for the purposes mentioned in
clause (ii) of paragraph 1 of this Plan and the distribution fees mentioned in
this paragraph are for the purposes mentioned in clause (i) of paragraph 1 and
the second sentence of paragraph 3 of this Plan. The Distributor will monitor
the payments hereunder and shall reduce such payments or take such other steps
as may be necessary to assure that (x) the payments pursuant to this Plan shall
be consistent with Rule 2830, subparagraphs (d)(2) and (5) of the Conduct Rules
of the National Association of Securities Dealers, Inc. with respect to
investment companies with asset-based sales charges and service fees as the same
may be in effect from time to time and (y) the Fund shall not pay with respect
to any Authorized Institution service fees equal to more than .20% of 1% of the
average annual net asset value of Shares sold by (or attributable to shares sold
by) such Authorized Institution and held in an account covered by an Agreement.
3. Within the foregoing maximum amounts, the Distributor may use
amounts received as distribution fees hereunder from the Fund to finance any
activity that is primarily intended to result in the sale of Shares including,
but not limited to, commissions or other payments relating to selling or
servicing efforts. Without limiting the generality of the foregoing, the
Distributor may apply amounts authorized by the Trust's Board of Trustees
designated as the distribution fee referred to in clause (b) of paragraph 2 to
expenses incurred by the Distributor if such expenses are primarily intended to
result in the sale of Shares. The Trust's Board of Trustees (in the manner
contemplated in paragraph 10 of this Plan) shall approve the timing, categories
and calculation of any payments under this paragraph 3 other than those referred
to in the foregoing sentence.
4. The net asset value of the Shares shall be determined as
provided in the Declaration and Agreement of Trust of the Trust. If the
Distributor waives all or a portion of fees which are to be paid by the Fund
hereunder, the Distributor shall not be deemed to have waived its rights under
this Agreement to have the Trust pay such fees in the future.
5. The Secretary of the Trust, or in his absence the Chief
Financial Officer, is hereby authorized to direct the disposition of monies paid
or payable by the Fund hereunder and shall provide to the Trust's Board of
Trustees, and the Board of Trustees shall review, at least quarterly, a written
report of the amounts so expended pursuant to this Plan and the purposes for
which such expenditures were made.
6. Neither this Plan nor any other transaction between the parties
hereto pursuant to this Plan shall be invalidated or in any way affected by the
fact that any or all of the Trustees, officers, shareholders, or other
representatives of the Trust are or may be "interested persons" of the
Distributor, or any successor or assignee thereof, or that any or all of the
trustees, officers, partners,
3
members or other representatives of the Distributor are or may be "interested
persons" of the Trust, except as otherwise may be provided in the Act.
7. The Distributor shall give the Trust the benefit of the
Distributor's best judgment and good faith efforts in rendering services under
this Plan. Other than to abide by the provisions hereof and render the services
called for hereunder in good faith, the Distributor assumes no responsibility
under this Plan and, having so acted, the Distributor shall not be held liable
or held accountable for any mistake of law or fact, or for any loss or damage
arising or resulting therefrom suffered by the Trust, the Fund or any of the
shareholders, creditors, Trustees or officers of the Trust; provided however,
that nothing herein shall be deemed to protect the Distributor against any
liability to the Trust or the Fund's shareholders by reason of willful
misfeasance, bad faith or gross negligence in the performance of its duties
hereunder, or by reason of the reckless disregard of its obligations and duties
hereunder.
8. This Plan shall become effective on the date hereof, and shall
continue in effect for a period of more than one year from such date only so
long as such continuance is specifically approved at least annually by a vote of
the Board of Trustees of the Trust, including the vote of a majority of the
Trustees who are not "interested persons" of the Trust and who have no direct or
indirect financial interest in the operation of this Plan or in any agreement
related to this Plan, cast in person at a meeting called for the purpose of
voting on such renewal.
9. This Plan may not be amended to increase materially the amount
to be spent by the Fund hereunder without the vote of a majority of the Shares
and each material amendment must be approved by a vote of the Board of Trustees
of the Trust, including the vote of a majority of the Trustees who are not
"interested persons" of the Trust and who have no direct or indirect financial
interest in the operation of this Plan or in any agreement related to this Plan,
cast in person at a meeting called for the purpose of voting on such amendment.
10. Amendments to this Plan other than material amendments of the
kind referred to in the foregoing paragraph 9 of this Plan may be adopted by a
vote of the Board of Trustees of the Trust, including the vote of a majority of
the Trustees who are not "interested persons" of the Trust and who have no
direct or indirect financial interest in the operation of this Plan or in any
agreement related to this Plan. The Board of Trustees of the Trust may, by such
a vote, interpret this Plan and make all determinations necessary or advisable
for its administration.
11. This Plan may be terminated at any time without the payment of
any penalty by (a) the vote of a majority of the Trustees of the Trust who are
not "interested persons" of the Trust and have no direct or indirect financial
interest in the operation of this Plan or in any agreement related to this Plan,
or (b) by a shareholder vote in compliance with Rule 12b-1 and Rule 18f-3 under
the Act as in effect at such time.
4
12. So long as this Plan shall remain in effect, the selection and
nomination of those Trustees of the Trust who are not "interested persons" of
the Trust are committed to the discretion of such disinterested trustees. The
terms "interested persons," "assignment" and "vote of a majority of the
outstanding voting securities" shall have the same meaning as those terms are
defined in the Act.
IN WITNESS WHEREOF, each of the parties has caused this instrument to be
executed in its name and on its behalf by its duly authorized representative as
of the date first above written.
LORD XXXXXX SECURITIES TRUST
Lord Xxxxxx Value Opportunities Fund
By:
-------------------------------
Vice President
ATTEST:
-------------------------------
Assistant Secretary
LORD XXXXXX DISTRIBUTOR LLC
By: LORD, XXXXXX & CO. LLC
-------------------------------
Managing Member
By:
-------------------------------
A Member
5
