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Exhibit 5(C)
CLASS C SHARES
DISTRIBUTION AGREEMENT
AGREEMENT made as of November 26, 1999 between XXXXXXX XXXXX GLOBAL
FINANCIAL SERVICES FUND, INC., a Maryland corporation (the "Fund") and XXXXXXX
XXXXX FUNDS DISTRIBUTOR, a division of PRINCETON FUNDS DISTRIBUTOR, INC., a
Delaware corporation (the "Distributor").
W I T N E S S E T H :
WHEREAS, the Directors of the Fund (the "Directors") are authorized to
offer separate classes of shares of common stock, par value $.10 per share; and
WHEREAS, the Directors have established and designated the Fund to
offer separate classes of shares of common stock, as described above; and
WHEREAS, the Fund is registered under the Investment Company Act of
1940, as amended (the "Investment Company Act"), as an open-end investment
company, and it is affirmatively in the interest of the Fund to offer its shares
for sale continuously; and
WHEREAS, the Distributor is a securities firm engaged in the business
of selling shares of investment companies either directly to purchasers or
through other securities dealers; and
WHEREAS, the Fund and the Distributor wish to enter into an agreement
with each other with respect to the continuous offering of Class C shares of
common stock in the Fund;
NOW, THEREFORE, the parties agree as follows:
Section 1. Appointment of the Distributor. The Fund hereby appoints the
Distributor as the Fund's principal underwriter and distributor to sell the
Class C shares of common stock in the Fund (sometimes herein referred to as
"Class C Shares") to the public and hereby agrees during the term of this
Agreement to sell the Class C Shares to the Distributor upon the terms and
conditions herein set forth.
Section 2. Exclusive Nature of Duties. The Distributor shall be the
Fund's exclusive representative to act as principal underwriter and distributor
of the Class C Shares, except that:
a. The Fund may, upon written notice to the Distributor, from time to
time designate other principal underwriters and distributors of the Class C
Shares with respect to areas other than the United States as to which the
Distributor may have expressly waived in writing its right to act as such. If
such designation is deemed exclusive, the right of the Distributor under this
Agreement to sell the Class C Shares in the areas so designated shall terminate,
but this Agreement shall remain otherwise in full effect until terminated in
accordance with the other provisions hereof.
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b. The exclusive rights granted to the Distributor to purchase Class C
Shares from the Fund shall not apply to Class C Shares issued in connection with
the merger or consolidation of any other investment company or personal holding
company with the Fund or the Fund's acquisition by purchase or otherwise of all
(or substantially all) the assets or the outstanding Class C shares of any such
company.
c. Such exclusive rights also shall not apply to Class C Shares issued
by the Fund pursuant to reinvestment of dividends or capital gains
distributions.
d. Such exclusive rights also shall not apply to Class C Shares issued
by the Fund pursuant to any conversion, exchange or reinstatement privilege
afforded redeeming shareholders or to any other Class C Shares as shall be
agreed between the Fund and the Distributor from time to time.
Section 3. Purchase of Class C Shares from the Fund.
a. Prior to the continuous offering of the Class C Shares, commencing
on a date agreed upon by the Fund and the Distributor, it is contemplated that
the Distributor will solicit subscriptions for Class C Shares during a
subscription period which shall last for such period as may be agreed upon by
the parties hereto. The subscriptions will be payable within three business days
after the termination of the subscription period, at which time the Fund will
commence operations.
b. After the Fund commences operations, the Fund will commence an
offering of Class C Shares and thereafter the Distributor shall have the right
to buy from the Fund the Class C Shares needed, but not more than the Class C
Shares needed (except for clerical errors in transmission) to fill unconditional
orders for Class C Shares placed with the Distributor by eligible investors or
securities dealers. Investors eligible to purchase Class C Shares shall be those
persons so identified in the currently effective prospectus and statement of
additional information of the Fund (the "prospectus" and "statement of
additional information," respectively) under the Securities Act of 1933, as
amended (the "Securities Act"), relating to the Class C Shares. The price that
the Distributor shall pay for the Class C Shares so purchased from the Fund
shall be the net asset value, determined as set forth in Section 3(d) hereof.
c. The Class C Shares are to be resold by the Distributor to investors
at net asset value, as set forth in Section 3(d) hereof, or to securities
dealers having agreements with the Distributor upon the terms and conditions set
forth in Section 7 hereof.
d. The net asset value of the Class C Shares shall be determined by the
Fund or any agent of the Fund in accordance with the method set forth in the
Fund's prospectus and statement of additional information and guidelines
established by the Directors.
e. The Fund shall have the right to suspend the sale of Class C Shares
at times when redemption is suspended pursuant to the conditions set forth in
Section 4(b) hereof. The Fund shall also have the right to suspend the sale of
Class C Shares if trading on the New York Stock Exchange shall have been
suspended, if a banking moratorium shall have been declared by Federal or New
York authorities, or if there shall have been some other event that, in the
judgment of the Fund, makes it impracticable or inadvisable to sell the Class C
Shares.
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f. The Fund, or any agent of the Fund designated in writing by the
Fund, shall be promptly advised of all purchase orders for Class C Shares
received by the Distributor. Any order may be rejected by the Fund; provided,
however, that the Fund will not arbitrarily or without reasonable cause refuse
to accept or confirm orders for the purchase of Class C Shares. The Fund (or its
agent) will confirm orders upon their receipt, will make appropriate book
entries and, upon receipt by the Fund (or its agent) of payment therefor, will
deliver deposit receipts or certificates for such Class C Shares pursuant to the
instructions of the Distributor. Payment shall be made to the Fund in New York
Clearing House funds. The Distributor agrees to cause such payment and such
instructions to be delivered promptly to the Fund (or its agent).
Section 4. Repurchase or Redemption of Class C Shares by the Fund.
a. Any of the outstanding Class C Shares may be tendered for redemption
at any time, and the Fund agrees to repurchase or redeem the Class C Shares so
tendered in accordance with its obligations as set forth in Article VI of the
Fund's Articles of Incorporation, as amended from time to time, and in
accordance with the applicable provisions set forth in the Fund's prospectus and
statement of additional information. The price to be paid to redeem or
repurchase the Class C Shares shall be equal to the net asset value calculated
in accordance with the provisions of Section 3(d) hereof, less any contingent
deferred sales charge ("CDSC"), redemption fee(s) or other charge(s), if any,
set forth in the prospectus and statement of additional information relating to
the Fund. All payments by the Fund hereunder shall be made in the manner set
forth below.
The Fund shall pay the total amount of the redemption price as defined
in the above paragraph pursuant to the instructions of the Distributor in New
York Clearing House funds on or before the seventh business day subsequent to
its having received the notice of redemption in proper form. The proceeds of any
redemption of Class C Shares shall be paid by the Fund as follows: (i) any
applicable CDSC shall be paid to the Distributor, and (ii) the balance shall be
paid to or for the account of the shareholder, in each case in accordance with
the applicable provisions of the prospectus and statement of additional
information.
b. Redemption of Class C Shares or payment may be suspended at times
when the New York Stock Exchange is closed, when trading on said Exchange is
suspended, when trading on said Exchange is restricted, when an emergency exists
as a result of which disposal by the Fund of securities owned by it is not
reasonably practicable or it is not reasonably practicable for the Fund fairly
to determine the value of the net assets of the Fund, or during any other period
when the Securities and Exchange Commission, by order, so permits.
Section 5. Duties of the Fund.
a. The Fund shall furnish to the Distributor copies of all information,
financial statements and other papers that the Distributor may reasonably
request for use in connection with the distribution of Class C Shares, and this
shall include, upon request by the Distributor, one certified copy of all
financial statements prepared for the Fund by independent public accountants.
The Fund shall make available to the Distributor such number of copies of the
Fund's prospectus and statement of additional information as the Distributor
shall reasonably request.
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b. The Fund shall take, from time to time, but subject to any necessary
approval of the Fund's Class C shareholders, all necessary action to fix the
number of authorized Class C Shares and such steps as may be necessary to
register the same under the Securities Act to the end that there will be
available for sale such number of Class C Shares as the Distributor reasonably
may be expected to sell.
c. The Fund shall use its best efforts to qualify and maintain the
qualification of an appropriate number of Class C Shares for sale under the
securities laws of such states as the Distributor and the Fund may approve. Any
such qualification may be withheld, terminated or withdrawn by the Fund at any
time in its discretion. As provided in Section 8(c) hereof, the expense of
qualification and maintenance of qualification shall be borne by the Fund. The
Distributor shall furnish such information and other material relating to its
affairs and activities as may be required by the Fund in connection with such
qualification.
d. The Fund will furnish, in reasonable quantities upon request by the
Distributor, copies of the Fund's annual and interim reports.
Section 6. Duties of the Distributor.
a. The Distributor shall devote reasonable time and effort to effect
sales of Class C Shares but shall not be obligated to sell any specific number
of Class C Shares. The services of the Distributor to the Fund hereunder are not
to be deemed exclusive and nothing herein contained shall prevent the
Distributor from entering into like arrangements with other investment companies
so long as the performance of its obligations hereunder is not impaired thereby.
b. In selling the Class C Shares, the Distributor shall use its best
efforts in all respects duly to conform with the requirements of all Federal and
state laws relating to the sale of such securities. Neither the Distributor nor
any selected dealer, as defined in Section 7 hereof, nor any other person is
authorized by the Fund to give any information or to make any representations,
other than those contained in the registration statement or related prospectus
and statement of additional information and any sales literature specifically
approved by the Fund.
c. The Distributor shall adopt and follow procedures, as approved by
the officers of the Fund, for the confirmation of sales to investors and
selected dealers, the collection of amounts payable by investors and selected
dealers on such sales, and the cancellation of unsettled transactions, as may be
necessary to comply with the requirements of the National Association of
Securities Dealers, Inc. (the "NASD"), as such requirements may from time to
time exist.
Section 7. Selected Dealer Agreements.
a. The Distributor shall have the right to enter into selected dealer
agreements with securities dealers of its choice ("selected dealers") for the
sale of Class C Shares; provided, that the Fund shall approve the forms of
agreements with dealers. Class C Shares sold to selected dealers shall be for
resale by such dealers only at net asset value determined as set forth in
Section 3(d) hereof. The form of agreement with selected dealers to be used
during the subscription period described in Section 3(a) is attached hereto as
Exhibit A and the initial form
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of agreement with selected dealers to be used in the continuous offering of the
Class C Shares is attached hereto as Exhibit B.
b. Within the United States, the Distributor shall offer and sell Class
C Shares only to such selected dealers as are members in good standing of the
NASD.
Section 8. Payment of Expenses.
a. The Fund shall bear all costs and expenses of the Fund, as incurred,
including fees and disbursements of the Fund's counsel and auditors, in
connection with the preparation and filing of any required registration
statements and/or prospectuses and statements of additional information under
the Investment Company Act, the Securities Act, and all amendments and
supplements thereto, and preparing and mailing annual and interim reports and
proxy materials to Class C shareholders (including but not limited to the
expense of setting in type any such registration statements, prospectuses,
statements of additional information, annual or interim reports or proxy
materials).
b. The Distributor shall be responsible for any payments made to
selected dealers as reimbursement for their expenses associated with payments of
sales commissions to financial consultants. In addition, after the prospectuses,
statements of additional information and annual and interim reports have been
prepared and set in type, the Distributor shall bear the costs and expenses of
printing and distributing any copies thereof to be used in connection with the
offering of Class C Shares to selected dealers or investors pursuant to this
Agreement. The Distributor shall bear the costs and expenses of preparing,
printing and distributing any other literature used by the Distributor or
furnished by it for use by selected dealers in connection with the offering of
the Class C Shares for sale to the public and any expenses of advertising
incurred by the Distributor in connection with such offering. It is understood
and agreed that so long as the Fund's Class C Shares Distribution Plan pursuant
to Rule 12b-1 under the Investment Company Act remains in effect, any expenses
incurred by the Distributor hereunder may be paid from amounts recovered by it
from the Fund under such Plan.
c. The Fund shall bear the cost and expenses of qualification of the
Class C Shares for sale pursuant to this Agreement and, if necessary or
advisable in connection therewith, of qualifying the Fund as a broker or dealer
in such states of the United States or other jurisdictions as shall be selected
by the Fund and the Distributor pursuant to Section 5(c) hereof and the cost and
expenses payable to each such state for continuing qualification therein until
the Fund decides to discontinue such qualification pursuant to Section 5(c)
hereof.
Section 9. Indemnification.
a. The Fund shall indemnify and hold harmless the Distributor and each
person, if any, who controls the Distributor against any loss, liability, claim,
damage or expense (including the reasonable cost of investigating or defending
any alleged loss, liability, claim, damage or expense and reasonable counsel
fees incurred in connection therewith), as incurred, arising by reason of any
person acquiring any Class C Shares, which may be based upon the Securities Act,
or on any other statute or at common law, on the ground that the registration
statement or related prospectus and statement of additional information, as from
time to time amended and
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supplemented, or an annual or interim report to the Fund's Class C shareholders,
includes an untrue statement of a material fact or omits to state a material
fact required to be stated therein or necessary in order to make the statements
therein not misleading, unless such statement or omission was made in reliance
upon, and in conformity with, information furnished to the Fund in connection
therewith by or on behalf of the Distributor; provided, however, that in no case
(i) is the indemnity of the Fund in favor of the Distributor and any such
controlling persons to be deemed to protect such Distributor or any such
controlling persons thereof against any liability to the Fund or its security
holders to which the Distributor or any such controlling persons would otherwise
be subject by reason of willful misfeasance, bad faith or gross negligence in
the performance of their duties or by reason of the reckless disregard of their
obligations and duties under this Agreement; or (ii) is the Fund to be liable
under its indemnity agreement contained in this paragraph with respect to any
claim made against the Distributor or any such controlling persons, unless the
Distributor or such controlling persons, as the case may be, shall have notified
the Fund in writing within a reasonable time after the summons or other first
legal process giving information of the nature of the claim shall have been
served upon the Distributor or such controlling persons (or after the
Distributor or such controlling persons shall have received notice of such
service on any designated agent), but failure to notify the Fund of any such
claim shall not relieve it from any liability that it may have to the person
against whom such action is brought otherwise than on account of its indemnity
agreement contained in this paragraph. The Fund will be entitled to participate
at its own expense in the defense or, if it so elects, to assume the defense of
any suit brought to enforce any such liability, but if the Fund elects to assume
the defense, such defense shall be conducted by counsel chosen by it and
satisfactory to the Distributor or such controlling person or persons, defendant
or defendants in the suit. In the event the Fund elects to assume the defense of
any such suit and retain such counsel, the Distributor or such controlling
person or persons, defendant or defendants in the suit shall bear the fees and
expenses, as incurred, of any additional counsel retained by them, but in case
the Fund does not elect to assume the defense of any such suit, it will
reimburse the Distributor or such controlling person or persons, defendant or
defendants in the suit, for the reasonable fees and expenses, as incurred, any
counsel retained by them. The Fund shall promptly notify the Distributor of the
commencement of any litigation or proceedings against it or any of its officers
or Directors in connection with the issuance or sale of any of the Class C
Shares.
b. The Distributor shall indemnify and hold harmless the Fund and each
of its Directors and officers, the Fund, and each person, if any, who controls
the Fund against any loss, liability, claim, damage or expense, as incurred,
described in the foregoing indemnity contained in subsection (a) of this
Section, but only with respect to statements or omissions made in reliance upon,
and in conformity with, information furnished to the Fund in writing by or on
behalf of the Distributor for use in connection with the registration statement
or related prospectus and statement of additional information, as from time to
time amended, or the annual or interim reports to Class C shareholders. In case
any action shall be brought against the Fund or any person so indemnified, in
respect of which indemnity may be sought against the Distributor, the
Distributor shall have the rights and duties given to the Fund, and the Fund and
each person so indemnified shall have the rights and duties given to the
Distributor by the provisions of subsection (a) of this Section 9.
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Section 10. Xxxxxxx Xxxxx Mutual Fund Advisor Program. In connection
with the Xxxxxxx Xxxxx Mutual Fund Advisor (Xxxxxxx Xxxxx MFA (sm)) Program, the
Distributor and its affiliate, Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated, are authorized to offer and sell shares of the Fund, as agent for
the Fund, to participants in such program. The terms of this Agreement shall
apply to such sales, including terms as to the offering price of Class C Shares,
the proceeds to be paid to the Fund, the duties of the Distributor, the payment
of expenses and indemnification obligations of the Fund and the Distributor.
Section 11. Duration and Termination of this Agreement. This Agreement
shall become effective as of the date first above written and shall remain in
force for two years and thereafter, but only for so long as such continuance is
specifically approved at least annually by (i) the Directors or by the vote of a
majority of the outstanding Class C voting securities of the Fund and (ii) by
the vote of a majority of those Directors who are not parties to this Agreement
or interested persons of any such party cast in person at a meeting called for
the purpose of voting on such approval.
This Agreement may be terminated at any time, without the payment of
any penalty, by the Directors or by vote of a majority of the outstanding Class
C voting securities of the Fund, or by the Distributor, on sixty days' written
notice to the other party. This Agreement shall automatically terminate in the
event of its assignment.
The terms "vote of a majority of the outstanding voting securities,"
"assignment," "affiliated person" and "interested person," when used in this
Agreement, shall have the respective meanings specified in the Investment
Company Act.
Section 12. Amendments of this Agreement. This Agreement may be amended
by the parties only if such amendment is specifically approved by (i) the
Directors or by the vote of a majority of outstanding Class C voting securities
of the Fund and (ii) by the vote of a majority of those Directors who are not
parties to this Agreement or interested persons of any such party cast in person
at a meeting called for the purpose of voting on such approval.
Section 13. Governing Law. The provisions of this Agreement shall be
construed and interpreted in accordance with the laws of the State of New York
as at the time in effect and the applicable provisions of the Investment Company
Act. To the extent that the applicable law of the State of New York, or any of
the provisions herein, conflict with the applicable provisions of the Investment
Company Act, the latter shall control.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.
XXXXXXX XXXXX GLOBAL FINANCIAL
SERVICES FUND, INC.
By: /s/ Xxxxx X. Xxxxx
-------------------------------------
(signature)
Name: Xxxxx X. Xxxxx
-----------------------------------
Title: President
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XXXXXXX XXXXX FUNDS DISTRIBUTOR, a
division of PRINCETON FUNDS DISTRIBUTOR,
INC.
By: /s/ Xxxxxxx X. Xxxxx
-------------------------------------
(signature)
Name: Xxxxxxx X. Xxxxx
-----------------------------------
Title: Vice President and Treasurer
----------------------------------
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Exhibit A
XXXXXXX XXXXX GLOBAL FINANCIAL SERVICES FUND, INC.
CLASS C SHARES OF COMMON STOCK
SELECTED DEALER AGREEMENT
FOR SUBSCRIPTION PERIOD
Ladies and Gentlemen:
Xxxxxxx Xxxxx Funds Distributor, a division of Princeton Funds
Distributor, Inc. (the "Distributor") has an agreement with Xxxxxxx Xxxxx Global
Financial Services Fund, Inc., a Maryland corporation (the "Fund"), pursuant to
which it acts as the distributor for the sale of Class C shares of common stock
of the Fund, par value $.10 per share (herein referred to as "Class C Shares")
and as such has the right to distribute Class C Shares for resale. The Fund is
an open-end investment company registered under the Investment Company Act of
1940, as amended, and its Class C Shares being offered to the public are
registered under the Securities Act of 1933, as amended (the "Securities Act").
Class C Shares and certain of the terms on which they are being offered are more
fully described in the enclosed Prospectus and Statement of Additional
Information. You have received a copy of the Class C Shares Distribution
Agreement (the "Distribution Agreement") between ourselves and the Fund and
reference is made herein to certain provisions of such Distribution Agreement.
This Agreement relates solely to the subscription period described in Section
3(a) of such Distribution Agreement. Subject to the foregoing, as principal, we
offer to sell to you, as a member of the Selected Dealers Group, Class C Shares
upon the following terms and conditions:
1. The subscription period referred to in Section 3(a) of the
Distribution Agreement will continue through ____________________________. The
subscription period may be extended upon agreement between the Fund and the
Distributor. Subject to the provisions of such Section and the conditions
contained herein, we will sell to you on the third business day following the
termination of the subscription period, or such other date as we may advise (the
"Closing Date"), such number of Class C Shares as to which you have placed
orders with us not later than 5:00 P.M. on the second full business day
preceding the Closing Date.
2. In all sales of Class C Shares to the public you shall act as
dealer for your own account, and in no transaction shall you have any authority
to act as agent for the Fund, for us or for any other member of the Selected
Dealers Group, except in connection with the Xxxxxxx Xxxxx Mutual Fund Advisor
(Xxxxxxx Xxxxx MFA (sm) Program and such other special programs as we from time
to time agree, in which case you shall have authority to offer and sell Class C
Shares, as agent for the Fund to participants in such program.
3. You shall not place orders for any of the Class C Shares
unless you have already received purchase orders for such Class C Shares at the
applicable public offering prices and subject to the terms hereof and of the
Distribution Agreement. All orders are subject to acceptance by the Distributor
or the Fund in the sole discretion of either. The minimum initial and subsequent
purchase requirements are as set forth in the Prospectus, as amended from time
to time. You agree that you will not offer or sell any of the Class C Shares
except under circumstances that will result in compliance with the applicable
Federal and state securities laws
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and that in connection with sales and offers to sell Class C Shares you will
furnish to each person to whom any such sale or offer is made a copy of the
Prospectus and, if requested, the Statement of Additional Information (as then
amended or supplemented) within three business days of receipt of request and
will not furnish to any person any information relating to the Class C Shares
that is inconsistent in any respect with the information contained in the
Prospectus and Statement of Additional Information (as then amended or
supplemented) or cause any advertisement to be published in any newspaper or
posted in any public place without our consent and the consent of the Fund.
4. Payment for Class C Shares purchased by you is to be made by
certified or official bank check at the office of Xxxxxxx Xxxxx Funds
Distributor, a division of Princeton Funds Distributor, Inc., X.X. Xxx 0000,
Xxxxxxxxx, Xxx Xxxxxx 00000-0000, on such date as we may advise, in New York
Clearing House funds payable to the order of Xxxxxxx Xxxxx Funds Distributor, a
division of Princeton Funds Distributor, Inc., or by federal funds wire
transfer, against delivery by us of non-negotiable share deposit receipts
("Receipts") issued by Financial Data Services, Inc., as shareholder servicing
agent, acknowledging the deposit with it of the Class C Shares so purchased by
you. You agree that as promptly as practicable after the delivery of such Class
C Shares you will issue appropriate written transfer instructions to the Fund or
to the shareholder servicing agent as to the purchasers to whom you sold the
Class C Shares.
5. No person is authorized to make any representations concerning
Class C Shares except those contained in the current Prospectus and Statement of
Additional Information of the Fund and in such printed information subsequently
issued by us or the Fund as information supplemental to such Prospectus and
Statement of Additional Information. In purchasing Class C Shares through us you
shall rely solely on the representations contained in the Prospectus and
Statement of Additional Information and supplemental information above
mentioned. Any printed information that we furnish you other than the Fund's
Prospectus and Statement of Additional Information, periodic reports and proxy
solicitation material are our sole responsibility and not the responsibility of
the Fund, and you agree that the Fund shall have no liability or responsibility
to you in these respects unless expressly assumed in connection therewith.
6. You agree to deliver to each of the purchasers making
purchases from you a copy of the then current Prospectus at or prior to the time
of offering or sale and, if requested, the Statement of Additional Information
within three business days of receipt of request, and you agree thereafter to
deliver to such purchasers copies of the annual and interim reports and proxy
solicitation materials of the Fund. You further agree to endeavor to obtain
proxies from such purchasers. Additional copies of the Prospectus and Statement
of Additional Information, annual or interim reports and proxy solicitation
materials of the Fund will be supplied to you in reasonable quantities upon
request.
7. We reserve the right in our discretion, without notice, to
suspend sales or withdraw the offering of Class C Shares entirely. Each party
hereto has the right to cancel this Agreement upon notice to the other party.
8. We shall have full authority to take such action as we may
deem advisable in respect of all matters pertaining to the subscription
offering. We shall be under no liability to
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you except for lack of good faith and for obligations expressly assumed by us
herein. Nothing contained in this paragraph is intended to operate as, and the
provisions of this paragraph shall not in any way whatsoever constitute, a
waiver by you of compliance with any provision of the Securities Act, or of the
rules and regulations of the Securities and Exchange Commission issued
thereunder.
9. You represent that you are a member of the National
Association of Securities Dealers, Inc. and, with respect to any sales in the
United States, we both hereby agree to abide by the Conduct Rules of such
Association.
10. Upon application to us, we will inform you as to the states in
which we believe the Class C Shares have been qualified for sale under, or are
exempt from the requirements of, the respective securities laws of such states,
but we assume no responsibility or obligation as to your right to sell Class C
Shares in any jurisdiction. We will file with the Department of State in New
York or State of New Jersey a Further State Notice with respect to the Class C
Shares, if necessary.
11. All communications to us should be sent to the address below.
Any notice to you shall be duly given if mailed or telegraphed to you at the
address specified by you below.
12. You agree that you will not sell any Class C Shares to any
account over which you exercise discretionary authority.
13. This Agreement shall terminate at the close of business on the
Closing Date, unless earlier terminated, provided, however, this Agreement shall
continue after termination for the purpose of settlement of accounts hereunder.
XXXXXXX XXXXX FUNDS DISTRIBUTOR, a division of
PRINCETON FUNDS DISTRIBUTOR, INC.
By: /s/ Xxxxxxx X. Xxxxx
-------------------------------------
(signature)
Name: Xxxxxxx X. Xxxxx
-----------------------------------
Title: Vice President and Treasurer
----------------------------------
Please return one signed copy of this Agreement to:
XXXXXXX XXXXX FUNDS DISTRIBUTOR, a division of
PRINCETON FUNDS DISTRIBUTOR, INC.
X.X. Xxx 0000 Xxxxxxxxx Xxx Xxxxxx 00000-0000
Accepted: Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx, Inc.
-------------------------------------------
(Name of Dealer Firm)
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By: /s/ Xxxxxx X. Xxxxxx
-------------------------------------
(signature)
Name: Xxxxxx X. Xxxxxx
-----------------------------------
Title: First Vice President
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Exhibit B
XXXXXXX XXXXX GLOBAL FINANCIAL SERVICES FUND, INC.
CLASS C SHARES OF COMMON STOCK
SELECTED DEALER AGREEMENT
Ladies and Gentlemen:
Xxxxxxx Xxxxx Funds Distributor, a division of Princeton Funds
Distributor, Inc. (the "Distributor") has an agreement with Xxxxxxx Xxxxx Global
Financial Services Fund, Inc., a Maryland corporation (the "Fund"), pursuant to
which it acts as the distributor for the sale of Class C shares of common stock
of the Fund, par value $.10 per share (herein referred to as "Class C Shares")
and as such has the right to distribute Class C Shares for resale. The Fund is
an open-end investment company registered under the Investment Company Act of
1940, as amended, and the Class C Shares are registered under the Securities Act
of 1933, as amended (the "Securities Act"). You have received a copy of the
Class C Shares Distribution Agreement (the "Distribution Agreement") between
ourselves and the Fund and reference is made herein to certain provisions of
such Distribution Agreement. The terms "Prospectus" and "Statement of Additional
Information" as used herein refer to the prospectus and statement of additional
information, respectively, on file with the Securities and Exchange Commission
(the "Commission") which is part of the most recent effective registration
statement pursuant to the Securities Act. We offer to sell to you, as a member
of the Selected Dealers Group, Class C Shares upon the following terms and
conditions:
1. In all sales of Class C Shares to the public you shall act as
dealer for your own account, and in no transaction shall you have any authority
to act as agent for the Fund, for us or for any other member of the Selected
Dealers Group, except in connection with the Xxxxxxx Xxxxx Mutual Fund Advisor
(Xxxxxxx Xxxxx MFA (sm)) Program and such other special programs as we from time
to time agree, in which case you shall have authority to offer and sell Class C
Shares, as agent for the Fund, to participants in such program.
2. Orders received from you will be accepted through us only at
the public offering price applicable to each order, as set forth in the current
Prospectus and Statement of Additional Information of the Fund. The procedure
relating to the handling of orders shall be subject to Section 4 hereof and
instructions that we or the Fund shall forward from time to time to you. All
orders are subject to acceptance or rejection by the Distributor or the Fund in
the sole discretion of either. The minimum initial and subsequent purchase
requirements are as set forth in the current Prospectus and Statement of
Additional Information of the Fund.
3. You shall not place orders for any of the Class C Shares
unless you have already received purchase orders for such Class C Shares at the
applicable public offering prices and subject to the terms hereof and of the
Distribution Agreement. You agree that you will not offer or sell any of the
Class C Shares except under circumstances that will result in compliance with
the applicable Federal and state securities laws and that in connection with
sales and offers to sell Class C Shares you will furnish to each person to whom
any such sale or offer is made a copy of the Prospectus and, if requested, the
Statement of Additional Information (as then amended or supplemented) within
three business days of receipt of request and will not furnish to any person any
information relating to the Class C Shares that is inconsistent in any respect
with the
14
information contained in the Prospectus and Statement of Additional Information
(as then amended or supplemented) or cause any advertisement to be published in
any newspaper or posted in any public place without our consent and the consent
of the Fund.
4. As a selected dealer, you are hereby authorized (i) to place
orders directly with the Fund for Class C Shares to be resold by us to you
subject to the applicable terms and conditions governing the placement of orders
by us set forth in Section 3 of the Distribution Agreement, and (ii) to tender
Class C Shares directly to the Fund or its agent for redemption subject to the
applicable terms and conditions set forth in Section 4 of the Distribution
Agreement.
5. You shall not withhold placing orders received from your
customers so as to profit yourself as a result of such withholding, e.g., by a
change in the "net asset value" from that used in determining the offering price
to your customers.
6. No person is authorized to make any representations concerning
Class C Shares except those contained in the current Prospectus and Statement of
Additional Information of the Fund and in such printed information subsequently
issued by us or the Fund as information supplemental to such Prospectus and
Statement of Additional Information. In purchasing Class C Shares through us you
shall rely solely on the representations contained in the Prospectus and
Statement of Additional Information and supplemental information above
mentioned. Any printed information that we furnish you other than the Fund's
Prospectus, Statement of Additional Information, periodic reports and proxy
solicitation material are our sole responsibility and not the responsibility of
the Fund, and you agree that the Fund shall have no liability or responsibility
to you in these respects unless expressly assumed in connection therewith.
7. You agree to deliver to each of the purchasers making
purchases from you a copy of the then current Prospectus at or prior to the time
of offering or sale and, if requested, the Statement of Additional Information
within three business days of receipt of request, and you agree thereafter to
deliver to such purchasers copies of the annual and interim reports and proxy
solicitation materials of the Fund. You further agree to endeavor to obtain
proxies from such purchasers. Additional copies of the Prospectus and Statement
of Additional Information, annual or interim reports and proxy solicitation
materials of the Fund will be supplied to you in reasonable quantities upon
request.
8. We reserve the right in our discretion, without notice, to
suspend sales or withdraw the offering of Class C Shares entirely or to certain
persons or entities in a class or classes specified by us. Each party hereto has
the right to cancel this Agreement upon notice to the other party.
9. We shall have full authority to take such action as we may
deem advisable in respect of all matters pertaining to the continuous offering.
We shall be under no liability to you except for lack of good faith and for
obligations expressly assumed by us herein. Nothing contained in this paragraph
is intended to operate as, and the provisions of this paragraph shall not in any
way whatsoever constitute, a waiver by you of compliance with any provision of
the Securities Act, or of the rules and regulations of the Commission issued
thereunder.
15
10. You represent that you are a member of the National
Association of Securities Dealers, Inc. and, with respect to any sales in the
United States, we both hereby agree to abide by the Conduct Rules of such
Association.
11. Upon application to us, we will inform you as to the states in
which we believe the Class C Shares have been qualified for sale under, or are
exempt from the requirements of, the respective securities laws of such states,
but we assume no responsibility or obligation as to your right to sell Class C
Shares in any jurisdiction. We will file with the Department of State in New
York or State of New Jersey a Further State Notice with respect to the Class C
Shares, if necessary.
12. All communications to us should be sent to the address below.
Any notice to you shall be duly given if mailed or telegraphed to you at the
address specified by you below.
13. Your first order placed pursuant to this Agreement for the
purchase of Class C Shares will represent your acceptance of this Agreement.
XXXXXXX XXXXX FUNDS DISTRIBUTOR, a division of
PRINCETON FUNDS DISTRIBUTOR, INC.
By: /s/ Xxxxxxx X. Xxxxx
-------------------------------------
(signature)
Name: Xxxxxxx X. Xxxxx
----------------------------------
Title: Vice President and Treasurer
----------------------------------
Please return one signed copy of this Agreement to:
XXXXXXX XXXXX FUNDS DISTRIBUTOR, a division of
PRINCETON FUNDS DISTRIBUTOR, INC.
X.X. Xxx 0000 Xxxxxxxxx, Xxx Xxxxxx 00000-0000
Accepted: Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx, Inc.
-------------------------------------------
(Name of Dealer Firm)
By: /s/ Xxxxxx X. Xxxxxx
-------------------------------------
(signature)
Name: Xxxxxx X. Xxxxxx
-----------------------------------
Title: First Vice President
----------------------------------
