AMENDED AND RESTATED DISTRIBUTION AGREEMENT July 1, 2009
Ex. (e)
AMENDED AND RESTATED
DISTRIBUTION AGREEMENT
DISTRIBUTION AGREEMENT
July 1, 2009
Xxxxxxx Xxxxxx & Co., Inc.
000 Xxxxxxxxxx Xxxxxx
Xxx Xxxxxxxxx, Xxxxxxxxxx 00000
000 Xxxxxxxxxx Xxxxxx
Xxx Xxxxxxxxx, Xxxxxxxxxx 00000
Ladies and Gentlemen:
This is to confirm that, in consideration of the agreements hereinafter contained, the
undersigned, SCHWAB CAPITAL TRUST (the “Trust”), a Massachusetts business trust, has agreed that
XXXXXXX XXXXXX & CO., INC. (the “Distributor”), a corporation organized under the laws of
California, shall be, for the period of this Agreement, the distributor of the units of beneficial
interest of the investment portfolios of the Trust identified on Schedule A hereto (each a “Fund”,
and collectively, the “Funds”), and that, pursuant to a Shareholder Servicing Plan (the “Plan”)
adopted by the Trust’s Board of Trustees, the Distributor shall facilitate payments to service
providers who provide services to shareholders of the Trust (“Clients”) who purchase shares of the
Funds. Such units of beneficial interest are hereinafter called “Shares.”
1. Services as Distributor.
1.1. Distributor will act as agent for the distribution of the Shares covered by the
registration statement and prospectus of the Trust in effect under the Securities Act of 1933, as
amended.
1.2. Distributor agrees to use appropriate efforts to solicit orders for the sale of the
Shares and will undertake such advertising and promotion as it believes reasonable in connection
with such solicitation. The Trust understands that Distributor may, in the future, be the
distributor of the shares of several investment companies or series (together, “Companies”),
including Companies having investment objectives similar to those of the Trust. The Trust further
understands that investors and potential investors in the Trust may invest in shares of such other
Companies. The Trust agrees that Distributor’s duties to such Companies shall not be deemed to be
in conflict with its duties to the Trust under this paragraph 1.2.
Distributor shall, at its own expense, finance appropriate activities which it deems
reasonable which are primarily intended to result in the sale of the Shares, including, but not
limited to, advertising, compensation of underwriters, dealers and sales personnel, the printing
and mailing of prospectuses to other than current Shareholders, and the printing and mailing of sales literature.
1.3. All activities by Distributor and its partners, agents, and employees as distributor of
the Shares shall comply with all applicable laws, rules and regulations, including, without
limitation,
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all rules and regulations made or adopted pursuant to the Investment Company Act of 1940 by the
Securities and Exchange Commission or any securities association registered under the
Securities Exchange Act of 1934.
Securities Exchange Act of 1934.
1.4. Distributor will provide one or more persons, during normal business hours, to respond to
telephone questions with respect to the Trust.
1.5. Distributor will transmit any orders received by it for purchase or redemption of the
Shares to the transfer agent and custodian for the Funds.
1.6. Whenever in their judgment such action is warranted by unusual market, economic or
political conditions, or by abnormal circumstances of any kind, the Trust’s officers may decline to
accept any orders for, or make any sales of the Shares until such time as those officers deem it
advisable to accept such orders and to make such sales.
1.7. Distributor will act only on its own behalf as principal if it chooses to enter into
selling agreements with selected dealers or others.
1.8. The Trust agrees at its own expense to execute any and all documents and to furnish any
and all information and otherwise to take all actions that may be reasonably necessary in
connection with the qualification of the Shares for sale in such states as Distributor may
designate.
1.9. The Trust shall furnish from time to time, for use in connection with the sale of the
Shares, such information with respect to the Funds and the Shares as Distributor may reasonably
request; and the Trust warrants that the statements contained in any such information shall fairly
show or represent what they purport to show or represent. The Trust shall also furnish Distributor
upon request with: (a) unaudited semi-annual statements of the Funds’ books and accounts prepared
by the Trust, (b) quarterly earnings statements prepared by the Trust, (c) a monthly itemized list
of the securities in the Funds, (d) monthly balance sheets as soon as practicable after the end of
each month, and (e) from time to time such additional information regarding the financial condition
of the Funds as Distributor may reasonably request.
1.10. The Trust represents to Distributor that all registration statements and prospectuses
filed by the Trust with the Securities and Exchange Commission under the Securities Act of 1933, as
amended, with respect to the Shares have been carefully prepared in conformity with the
requirements of said Act and rules and regulations of the Securities and Exchange Commission
thereunder. As used in this agreement the terms “registration statement” and “prospectus” shall
mean any registration statement and any prospectus and Statement of Additional Information relating
to the Funds filed with the Securities and Exchange Commission and any amendments and supplements
thereto which at any time shall have been filed with the same Commission. The Trust represents and
warrants to Distributor that any registration statement and prospectus, when such registration
statement becomes effective, will contain all statements required to be stated therein in
conformity with said Act and the rules and regulations of said Commission; that all statements of
fact contained in any such registration statement and prospectus will be true and correct when such
registration statement becomes effective; and that
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neither any registration statement nor any prospectus when such registration statement becomes
effective will include an 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 not misleading to a
purchaser of the Shares. The Distributor may but shall not be obligated to propose from time to
time such amendment or amendments to any registration statement and such supplement or supplements
to any prospectus as, in the light of future developments, may, in the opinion of the Distributor’s
counsel, be necessary or advisable. If the Trust shall not propose such amendment or amendments
and/or supplement or supplements within fifteen days after receipt by the Trust of a written
request from Distributor to do so, Distributor may, at its option, terminate this agreement. The
Trust shall not file any amendment to any registration statement or supplement to any prospectus
without giving Distributor reasonable notice thereof in advance; provided, however, that nothing
contained in this agreement shall in any way limit the Trust’s right to file at any time such
amendments to any registration statement and/or supplements to any prospectus, of whatever
character, as the Trust may deem advisable, such right being in all respects absolute and
unconditional.
1.11. The Trust authorizes Distributor and dealers to use any prospectus in the form furnished
from time to time in connection with the sale of the Shares. The Trust agrees to indemnify, defend
and hold Distributor, its directors, officers and employees, and any person who controls
Distributor within the meaning of Section 15 of the Securities Act of 1933, as amended, free and
harmless from and against any and all claims, demands, liabilities and expenses (including the cost
of investigating or defending such claims, demands or liabilities and any counsel fees incurred in
connection therewith) which Distributor, its partners and employees, or any such controlling
person, may incur under the Securities Act of 1933, as amended, or under common law or otherwise,
arising out of or based upon any untrue statement, or alleged untrue statement, of a material fact
contained in any registration statement or any prospectus or arising out of or based upon any
omission, or alleged omission, to state a material fact required to be stated in either any
registration statement or any prospectus or necessary to make the statements in either thereof not
misleading; provided, however, that the Trust’s agreement to indemnify Distributor, its directors,
officers or employees, and any such controlling person shall not be deemed to cover any claims,
demands, liabilities or expenses arising out of any statements or representations as are contained
in any prospectus and in such financial and other statements as are furnished in writing to the
Trust by Distributor and used in the answers to the registration statement or in the corresponding
statements made in the prospectus, or arising out of or based upon any omission or alleged omission
to state a material fact in connection with the giving of such information required to be stated in
such answers or necessary to make the answers not misleading; and further provided that the Trust’s
agreement to indemnify Distributor and the Trust’s representations and warranties hereinbefore set
forth in paragraph 1.10 shall not be deemed to cover any liability to the Trust or its Shareholders
to which Distributor would otherwise be subject by reason of willful misfeasance, bad faith or
gross negligence in the performance of its duties, or by reason of Distributor’s reckless disregard
of its obligations and duties under this agreement. The Trust’s agreement to indemnify Distributor,
its partners and employees, and any such controlling person, as aforesaid, is expressly conditioned
upon the Trust’s being notified of any action brought against Distributor, its directors, officers
or employees, or any such controlling person, such notification to be given by letter or by
telegram addressed to the Trust at its principal office in San Francisco, California and sent to
the Trust by
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the person against whom such action is brought, within 10 days after the summons or other first
legal process shall have been served. The failure to so notify the Trust of any such action shall
not relieve the Trust from any liability which the Trust may have to the person against whom such
action is brought by reason of any such untrue, or allegedly untrue, statement or omission, or
alleged omission, otherwise than on account of the Trust’s indemnity agreement contained in this
paragraph 1.11. The Trust will be entitled to assume the defense of any suit brought to enforce any
such claim, demand or liability, but, in such case, such defense shall be conducted by counsel of
good standing chosen by the Trust and approved by Distributor, which approval shall not be
unreasonably withheld. In the event the Trust elects to assume the defense of any such suit and
retain counsel of good standing approved by Distributor, the defendant or defendants in such suit
shall bear the fees and expenses of any additional counsel retained by any of them; but in case the
Trust does not elect to assume the defense of any such suit, or in case Distributor reasonably does
not approve of counsel chosen by the Trust, the Trust will reimburse Distributor, its directors,
officers and employees, or the controlling person or persons named as defendant or defendants in
such suit, for the fees and expenses of any counsel retained by Distributor or them. The Trust’s
indemnification agreement contained in this paragraph 1.11 and the Trust’s representations and
warranties in this agreement shall remain operative and in full force and effect regardless of any
investigation made by or on behalf of Distributor, its partners and employees, or any controlling
person, and shall survive the delivery of any Shares. This agreement of indemnity will inure
exclusively to Distributor’s benefit, to the benefit of its several partners and employees, and
their respective estates, and to the benefit of the controlling persons and their successors. The
Trust agrees promptly to notify Distributor of the commencement of any litigation or proceedings
against the Trust or any of its officers or Trustees in connection with the issue and sale of any
Shares.
1.12. Distributor agrees to indemnify, defend and hold the Trust, its several officers and
Trustees and any person who controls the Trust within the meaning of Section 15 of the Securities
Act of 1933, as amended, free and harmless from and against any and all claims, demands,
liabilities and expenses (including the costs of investigating or defending such claims, demands or
liabilities and any counsel fees incurred in connection therewith) which the Trust, its officers or
Trustees or any such controlling person, may incur under the Securities Act of 1933, as amended, or
under common law or otherwise, but only to the extent that such liability or expense incurred by
the Trust, its officers or Trustees or such controlling person resulting from such claims or
demands, shall arise out of or be based upon any untrue, or alleged untrue, statement of a material
fact contained in information furnished in writing by Distributor to the Trust and used in the
answers to any of the items of the registration statement or in the corresponding statements made
in the prospectus, or shall arise out of or be based upon any omission, or alleged omission, to
state a material fact in connection with such information furnished in writing by Distributor to
the Trust required to be stated in such answers or necessary to make such information not
misleading. Distributor’s agreement to indemnify the Trust, its officers and Trustees, and any such
controlling person, as aforesaid, is expressly conditioned upon Distributor’s being notified of any
action brought against the Trust, its officers or Trustees, or any such controlling person, such
notification to be given by letter or telegram addressed to Distributor at its principal office in
San Francisco, California and sent to Distributor by the person against whom such action is
brought, within 10 days after the summons or other first legal process shall have been served.
Distributor shall have the right of first control of the
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defense of such action, with counsel of its own choosing, satisfactory to the Trust, if such action
is based solely upon such alleged misstatement or omission on Distributor’s part, and in any other
event the Trust, its officers or Trustees or such controlling person shall each have the right to
participate in the defense or preparation of the defense of any such action. The failure to so
notify Distributor of any such action shall not relieve Distributor from any liability which
Distributor may have to the Trust, its officers or Trustees, or to such controlling person by
reason of any such untrue or alleged untrue statement, or omission or alleged omission, otherwise
than on account of Distributor’s indemnity agreement contained in this paragraph 1.12.
1.13. No Shares shall be offered by either Distributor or the Trust under any of the
provisions of this agreement and no orders for the purchase or sale of Shares hereunder shall be
accepted by the Trust if and so long as the effectiveness of the registration statement then in
effect or any necessary amendments thereto shall be suspended under any of the provisions of the
Securities Act of 1933, as amended, or if and so long as a current prospectus as required by
Section 10(b)(2) of said Act, as amended, is not on file with the Securities and Exchange
Commission; provided, however, that nothing contained in this paragraph 1.13 shall in any way
restrict or have an application to or bearing upon the Trust’s obligation to repurchase Shares from
any Shareholder in accordance with the provisions of the Trust’s prospectus, Declaration of Trust,
or By-laws.
1.14. The Trust agrees to advise Distributor as soon as reasonably practical by a notice in
writing delivered to Distributor or its counsel:
(a) of any request by the Securities and Exchange Commission for amendments to the
registration statement or prospectus then in effect or for additional information;
(b) in the event of the issuance by the Securities and Exchange Commission of any
stop order suspending the effectiveness of the registration statement or prospectus
then in effect or the initiation by service of process on the Trust of any proceeding
for that purpose;
(c) of the happening of any event that makes untrue any statement of a material
fact made in the registration statement or prospectus then in effect or which requires
the making of a change in such registration statement or prospectus in order to make
the statements therein not misleading; and
(d) of all action of the Securities and Exchange Commission with respect to any
amendment to any registration statement or prospectus which may from time to time be
filed with the Securities and Exchange Commission.
For purposes of this section, informal requests by or acts of the Staff of the Securities and
Exchange Commission shall not be deemed actions of or requests by the Securities and Exchange
Commission.
1.15. Distributor agrees on behalf of itself and its directors, officers and employees to
treat confidentially and as proprietary information of the Trust all records and other information
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relative to the Trust and its prior, present or potential Shareholders, and not to use such records
and information for any purpose other than performance of its responsibilities and duties
hereunder, except after prior notification to and approval in writing by the Trust, which approval
shall not be unreasonably withheld and may not be withheld where Distributor may be exposed to
civil or criminal contempt proceedings for failure to comply, when requested to divulge such
information by duly constituted authorities, or when so requested by the Trust.
1.16. This agreement shall be governed by the laws of the Commonwealth of Massachusetts.
2. Services Paying Agent.
Pursuant to the Plan, Distributor will act as agent for the Trust to make payments, up to the
amounts provided for under the Plan, to any service providers with which Distributor has entered
into written agreements under the Plan.
3. Issuance of Shares.
The Trust reserves the right to issue, transfer or sell Shares of the Funds at net asset value
(a) in connection with the merger or consolidation of the Trust or the Funds with any other
investment company or the acquisition by the Trust or the Funds of all or substantially all of the
assets or of the outstanding Shares of any other investment company; (b) in connection with a pro
rata distribution directly to the holders of Shares of a Fund in the nature of a stock dividend or
split; (c) upon the exercise of subscription rights granted to the holders of Shares of a Fund on a
pro rata basis; (d) in connection with the issuance of Shares of a Fund pursuant to any exchange
and reinvestment privileges described in any then-current prospectus of a Fund; and (e) otherwise
in accordance with any then-current prospectus of the Funds.
4. Term and Matters Relating to the Trust as a Massachusetts Business Trust.
This agreement shall become effective as to the Trust on July 1, 2009 and, unless sooner
terminated as provided herein, shall continue until two years, and thereafter shall continue
automatically for successive one-year periods ending on July 1 of each successive year; provided,
however, that such continuance is specifically approved at least annually by (i) the Trust’s Board
of Trustees or (ii) by “vote of a majority of the outstanding Shares” (as defined below) of the
Trust, and provided further, that in either event the continuance is also approved at least
annually by the majority of the Trust’s Trustees who are not parties to the agreement or interested
persons (as defined in the 0000 Xxx) of any party to this agreement, by vote cast in person at a
meeting called for the purpose of voting on such approval. This agreement is terminable on not less
than sixty days’ notice by the Trust’s Board of Trustees, by “vote of a majority of the outstanding
Shares” (as defined below) of the Trust or by Distributor. This agreement will also terminate
automatically in the event of its assignment (as defined in the 1940 Act). For purposes of this
Agreement, the term “vote of a majority of the outstanding Shares” shall mean the approval, at a
meeting of Shareholders duly called, of the lesser of (i) the holders of 67% or more of the votes
present at any such meeting, if the holders of more than 50% of the
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outstanding votes are present or represented by proxy thereat; or (ii) the holders of more than 50%
of the outstanding votes.
The names “Schwab Capital Trust” and “Trustees of Schwab Capital Trust” refer respectively to
the Trust created and the Trustees, as trustees but not individually or personally, acting from
time to time under a Declaration of Trust dated as of May 10, 1993 to which reference is hereby
made and a copy of which is on file at the office of the Secretary of State of The Commonwealth of
Massachusetts and elsewhere as required by law, and to any and all amendments thereto so filed or
hereafter filed. The obligations of “Schwab Capital Trust” entered into in the name or on behalf
thereof by any of the Trustees, representatives or agents are made not individually, but in such
capacities, and are not binding upon any of the Trustees, Shareholders or representatives of the
Trust personally, but bind only the assets of the Trust, and all persons dealing with any series of
Shares of the Trust must look solely to the assets of the Trust belonging to such series for the
enforcement of any claims against the Trust.
5. Severability.
If any provision of this Agreement is found by a court or agency of competent jurisdiction to
be in violation of any state or federal law, rule or regulation, then the invalidity of such
provision shall not affect the enforceability or validity of the remaining provisions.
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Please confirm that the foregoing is in accordance with your understanding by indicating your
acceptance hereof at the place below indicated, whereupon it shall become a binding agreement
between us.
Yours very truly,
| Schwab Capital Trust | ||||
By: Name: |
/s/ Xxxxxx X. Xxxxxxx
|
|||
Title:
|
CFO | |||
Accepted:
|
||||
| Xxxxxxx Xxxxxx & Co., Inc. | ||||
By: Name: |
/s/ Xxxxx Xxxxxxxx
|
|||
Title:
|
SVP | |||
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SCHEDULE A
TO THE DISTRIBUTION AGREEMENT
BETWEEN
SCHWAB CAPITAL TRUST AND XXXXXXX XXXXXX & CO., INC.
TO THE DISTRIBUTION AGREEMENT
BETWEEN
SCHWAB CAPITAL TRUST AND XXXXXXX XXXXXX & CO., INC.
| Fund | Effective Date | |
Schwab International Index Fund |
July 21, 1993 | |
Schwab Small-Cap Index Fund |
October 14, 1993 | |
Schwab MarketTrack Growth Portfolio (formerly known as
the Schwab Asset Director—High Growth Fund) |
September 25, 1995 | |
Schwab MarketTrack Balanced Portfolio (formerly known as
Schwab Asset Director—Balanced Growth Fund) |
September 25, 1995 | |
Schwab MarketTrack Conservative Portfolio (formerly
known as Schwab Asset Director—Conservative Growth Fund) |
September 25, 1995 | |
Schwab S&P 500 Index Fund |
February 28, 1996 | |
Schwab Core Equity Fund (formerly known as Schwab
Analytics Fund) |
May 21, 1996 | |
Laudus International MarketMasters Fund (formerly known
as Schwab International MarketMasters Fund, Schwab
MarketManager International Portfolio and Schwab
OneSource Portfolios—International) |
September 2, 1996 | |
Laudus U.S. MarketMasters Fund (formerly known as Schwab
U.S. MarketMasters Fund, Schwab MarketManager Growth
Portfolio and Schwab OneSource Portfolios—Growth
Allocation) |
October 13, 1996 | |
Schwab Balanced Fund (formerly known as Schwab
Viewpoints Fund, Laudus Balanced MarketMasters Fund,
Schwab Balanced MarketMasters Fund, Schwab MarketManager
Balanced Portfolio and Schwab OneSource
Portfolios—Balanced Allocation) |
October 13, 1996 | |
Laudus Small-Cap MarketMasters Fund (formerly known as
Schwab Small—Cap MarketMasters Fund, Schwab
MarketManager Small Cap Portfolio and Schwab OneSource
Portfolios—Small Company) |
August 3, 1997 | |
Schwab Institutional Select S&P 500 Fund (formerly known
as Institutional Select S&P 500 Fund) |
October 28, 1998 | |
Schwab Total Stock Market Index Fund |
April 15, 1999 |
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| Fund | Effective Date | |
Schwab Financial Services Fund (formerly known as
Financial Services Focus Fund) |
May 15, 2000 | |
Schwab Health Care Fund (formerly known as Health Care
Focus Fund) |
May 15, 2000 | |
Schwab Hedged Equity Fund |
August 6, 2002 | |
Schwab Small—Cap Equity Fund |
May 19, 2003 | |
Schwab Dividend Equity Fund |
September 23, 2003 | |
Schwab Premier Equity Fund |
November 16, 2004 | |
Schwab Target 2010 Fund |
May 24, 2005 | |
Schwab Target 2015 Fund |
November 12, 2007 | |
Schwab Target 2020 Fund |
May 24, 2005 | |
Schwab Target 2025 Fund |
November 12, 2007 | |
Schwab Target 2030 Fund |
May 24, 2005 | |
Schwab Target 2035 Fund |
November 12, 2007 | |
Schwab Target 2040 Fund |
May 24, 2005 | |
Schwab Retirement Income Fund |
May 24, 2005 | |
Schwab Large Cap Growth Fund |
August 9, 2005 | |
Schwab Fundamental US Large Company Index Fund |
February 28, 2007 | |
Schwab Fundamental US Small-Mid Company Index Fund |
February 28, 2007 | |
Schwab Fundamental International Large Company Index Fund |
February 28, 2007 | |
Schwab Fundamental Emerging Markets Index Fund |
November 12, 2007 | |
Schwab Fundamental International Small-Mid Company Index Fund |
November 12, 2007 | |
Xxxxxx Monthly Income Fund—Moderate Payout |
February 25, 2008 |
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| Fund | Effective Date | |
Xxxxxx Monthly Income Fund—Enhanced Payout |
February 25, 2008 | |
Schwab Monthly Income Fund—Maximum Payout |
February 25, 2008 |
| Schwab Capital Trust | ||||
By:
|
/s/ Xxxxxx X. Xxxxxxx | |||
Name:
|
Xxxxxx X. Xxxxxxx | |||
Title:
|
CFO | |||
| Xxxxxxx Xxxxxx & Co., Inc. | ||||
By: Name: |
/s/ Xxxxx Xxxxxxxx
|
|||
Title:
|
SVP | |||
Dated as of July 1, 2009
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