EX-99.e
DISTRIBUTION AGREEMENT
THE XXXXXXX FUNDS
000 Xxxxx XxXxxxx Xxxxxx
Xxxxxxx, Xx 00000-0000
February 24, 1997
Funds Distributor, Inc.
00 Xxxxx Xxxxxx
Xxxxx 0000
Xxxxxx, Xxxxxxxxxxxxx 00000
Dear Sirs:
This is to confirm that, in consideration of the agreements hereinafter
contained, the above-named investment company (the "Fund") has agreed that you
shall be, for the period of this agreement, the distributor of (a) shares of
each Series of the Fund set forth on Exhibit A hereto, as such Exhibit may be
revised from time to time (each, a "Series"). For purposes of this agreement the
term "Shares" shall mean the authorized shares of each of the relevant Series of
the Fund.
1. Services as Distributor
1.1 You will act as agent for the distribution of Shares covered by, and
in accordance with, the Fund's registration statement and prospectus and
statement of additional information then in effect under the Securities Act of
1933, as amended, and will transmit promptly any orders received by you for
purchase or redemption of Shares to the Transfer Agent for the Fund of which the
Fund has notified you in writing from time to time.
1.2 You agree to use your best efforts to solicit orders for the sale of
Shares. It is contemplated that you may appoint sub-agents and enter into sales
or servicing agreements with securities dealers, financial institutions and
other industry professionals, such as investment advisers, accountants and
estate planning firms, and in so doing you will act only on your own behalf as
principal and not as principal for the Fund. This Agreement shall not be
construed as authorizing any securities dealer or other person to accept orders
for sale or repurchase on our behalf or otherwise act as our agent for any
purpose. However, the Fund and each Series retain the right to make direct
sales of Shares consistent with the terms of the prospectus and statement of
additional information relating to the Shares then in effect under the
Securities Act of 1933, as amended, and applicable law, and to engage in other
legally authorized transactions in Shares which do not involve the sale of
Shares to the general public. Such other transactions may include, without
limitation, transactions between the Fund or any Series or class and its
shareholders only, transactions involving the reorganization of the Fund or any
Series, and transactions involving the merger or combination of the Fund or any
Series with another corporation or trust.
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1.3 You shall act as distributor of Shares in compliance with all
applicable laws, rules and regulations, including, without limitations, the
Investment Company Act of 1940, as amended, the Securities Act of 1933, as
amended, the Securities Exchange Act of 1934, as amended, and the National
Association of Securities Dealers, Inc.'s (the "NASD") Rules of Fair Practice,
Constitution and By-Laws. You represent and warrant that you are a broker-dealer
registered with the Securities and Exchange Commission and that you are
registered with the relevant securities regulatory agencies in all fifty states,
the District of Columbia and Puerto Rico. You also represent and warrant that
you are a member in good standing of the NASD and that you will maintain
registration and membership for the life of the agreement.
1.4 Other than our prospectus and statement of additional information
relating to the Shares then in effect under the Securities Act of 1933, as
amended, you will not issue any sales material or statements except literature
or advertising which conforms to the requirements of Federal and State
securities laws and regulations and which have been filed, where necessary, with
the appropriate regulatory authorities. You shall file Fund advertisements,
sales literature and other marketing and sales related materials with the
appropriate regulatory agencies and shall obtain such approvals for their use as
may be required by the Securities and Exchange Commission, the NASD and/or state
securities administrators.
1.5 The Fund may decline to accept any orders for, or make any sales of,
any Shares until such time as it deems it advisable to accept such orders and to
make such sales and the Fund shall advise you promptly of any such
determination.
1.6 The Fund agrees to pay all costs and expenses in connection with the
registration of Shares under the Securities Act of 1933, as amended, and all
expenses in connection with maintaining facilities for the issue and transfer of
Shares and for supplying information, prices and other data to be furnished by
the Fund hereunder, and all expenses in connection with the preparation and
printing of the Fund's prospectuses and statements of additional information for
regulatory purposes and for their distribution to shareholders; provided
however, that the Fund shall not pay any of the costs of advertising or
promotion for the sale of Shares pursuant to this agreement. You shall also be
entitled to compensation for your services as provided in any Distribution Plan
adopted as to any Series and class of the Fund's Shares pursuant to Rule 12b-1
under the Investment Company Act of 1940.
1.7 The Fund agrees to execute any and all documents and to furnish any
and all information and otherwise to take all actions which may be reasonably
necessary in the discretion of the Fund's officers in connection with the
registration and/or qualification, as applicable, of Shares for sale in such
states as you may designate to the Fund and the Fund may approve, and the Fund
agrees to pay all reasonable expenses which may be incurred in connection with
such qualification or registration. You shall pay all expenses connected with
your own qualification as a dealer under state or Federal laws and, except as
otherwise specifically provided in this agreement, all other expenses incurred
by you in connection with the sale of Shares as contemplated in this agreement.
1.8 The Fund shall furnish you from time to time, for use in connection
with the sale of Shares, such information with respect to the Fund or any
relevant Series and the Shares as you may reasonably request, all of which shall
be signed by one or more of the Fund's duly authorized officers; and the Fund
warrants that the statements contained in any such information, when so signed
by the Fund's officers, shall be true and correct. The Fund also shall furnish
you
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upon request with: (a) semi-annual reports and annual audited reports of the
Fund's books and accounts made by independent public accountants regularly
retained by the Fund, (b) semi-annual financial statements prepared by us; (c)
registration statements; and (d) from time to time such additional information
regarding the Fund's financial condition as you may reasonably request.
1.9 The Fund represents to you that all registration statements and
prospectuses filed by the Fund with the Securities and Exchange Commission under
the Securities Act of 1933, as amended, and under the Investment Company Act of
1940, as amended, with respect to the Shares and the Fund have been prepared in
conformity with the requirements of said Acts 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 prospectus, including the statement of additional information
incorporated by reference therein, filed with the Securities and Exchange
Commission and any amendments and supplements thereto which at any time shall
have been filed with said Commission. The Fund represents and warrants to you
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 Acts 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 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. The Fund
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 Fund's counsel, be necessary or advisable. If the Fund shall not propose
such amendment or amendments and/or supplement or supplements within fifteen
days after receipt by the Fund of a written request from you to do so, you may,
at your option, terminate this agreement or decline to make offers of the Fund's
securities until such amendments are made. The Fund shall not file any
amendment to any registration statement or supplement to any prospectus without
giving you reasonable notice thereof in advance; provided, however, that nothing
contained in this agreement shall in any way limit the Fund's right to file at
any time such amendments to any registration statement and/or supplements to any
prospectus, of whatever character, as the Fund may deem advisable, such right
being in all respects absolute and unconditional.
1.10 The Fund authorizes you and any dealers with whom you have entered
into dealer agreements to use any currently effective prospectus in the form
furnished by the Fund in connection with the sale of Shares. The Fund agrees to
indemnify, defend and hold you, your several officers and directors, and any
person who controls you 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 reasonable cost of
investigating or defending such claims, demands or liabilities and any
reasonable counsel fees incurred in connection therewith) which you, your
officers and directors, or any such controlling persons, may incur under the
Securities Act of 1933, as amended, the Investment Company Act of 1940, as
amended, or common law or otherwise, arising out of or on the basis of any
untrue statement, or alleged untrue statement, of a material fact required to be
stated in either any registration statement or any prospectus or any statement
of additional information, or arising out of or based upon any omission, or
alleged omission, to state a material fact required to be stated in any
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registration statement, any prospectus or any statement of additional
information or necessary to make the statements in any of the aforementioned
documents not misleading, except that the Fund's agreement to indemnify you,
your officers or directors, and any such controlling person will not be deemed
to cover any such claim, demand, liability or expense to the extent that it
arises out of or is based upon any such untrue statement, alleged untrue
statement, omission or alleged omission made in any registration statement, any
prospectus or any statement of additional information in reliance upon
information furnished by you, your officers, directors or any such controlling
person to the Fund or a person that you reasonably believe is a person
designated by the Fund for use in the preparation thereof, and except that the
Fund's agreement to indemnify you and the Fund's representations and warranties
set out in paragraph 1.9 of this Agreement will not be deemed to cover any
liability to the Funds or their shareholders to which you would otherwise be
subject by reason of willful misfeasance, bad faith or gross negligence in the
performance of your duties, or by reason of your reckless disregard in the
performance of your obligations and duties under this Agreement ("Disqualifying
Conduct"). The Fund's agreement to indemnify you, your officers and directors,
and any such controlling person, as aforesaid, is expressly conditioned upon the
Fund's being notified of any action brought against you, your officers or
directors, or any such controlling person, such notification to be given by
letter, by facsimile or by telegram addressed to the Fund at its address set
forth above promptly after the summons or other first legal process shall have
been served. The failure to so notify the Fund of any such action shall not
relieve the Fund from any liability which the Fund may have to the person
against whom such action is brought by reason of any such untrue, or alleged
untrue, statement or omission, or alleged omission, otherwise than on account of
the Fund's indemnity agreement contained in this paragraph 1.10. The Fund 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 Fund and approved by you. In the event
the Fund elects to assume the defense of any such suit and retain counsel of
good standing approved by you, 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 Fund does not elect to assume the defense of any such suit, the
Fund will reimburse you, your officers and directors, or the controlling person
or persons named as defendant or defendants in such suit, for the reasonable
fees and expenses of any counsel retained by you or them. The Fund's
indemnification agreement contained in this paragraph 1.10 and the Fund'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
you, your officers and directors, or any controlling person, and shall survive
the delivery of any Shares. This agreement of indemnity will inure exclusively
to your benefit, to the benefit of your several officers and directors, and
their respective estates, and to the benefit of any controlling persons and
their successors. The Fund agrees promptly to notify you of the commencement of
any litigation or proceedings against the Fund or any of its officers or Board
members in connection with the issue and sale of Shares.
1.11 You agree to indemnify, defend and hold the Fund, its several
officers and Board members, and any person who controls the Fund 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 reasonable cost of investigating or defending such claims,
demands or liabilities and any reasonable counsel fees incurred in connection
therewith) which the Fund, its officers or Board members, or any such
controlling person, may incur under the Securities Act of 1933, as amended, the
Investment Company Act of 1940, as amended, or under common law or otherwise,
but only to the extent that such liability or expense incurred by the Fund, its
officers or Board members, or such controlling person resulting from
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such claims or demands, (a) shall arise out of or be based upon any
Disqualifying Conduct, or (b) 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 you to the Fund specifically for use in the Fund's registration
statement and used in the answers to any of the items of the registration
statement or in the corresponding statements made in the prospectus or statement
of additional information, 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 you to the Fund and required to be stated in
such answers or necessary to make such information not misleading. Your
agreement to indemnify the Fund, its officers and Board members, and any such
controlling person, as aforesaid, is expressly conditioned upon your being
notified of any action brought against the Fund, its officers or Board members,
or any such controlling person, such notification to be given by letter, by
facsimile or by telegram addressed to you at your address set forth above
promptly after the summons or other first legal process shall have been served.
The failure so to notify you of any such action shall not relieve you from any
liability which you may have to the person against whom such action is brought
by reason of any such untrue, or alleged untrue, statement or omission, or
alleged omission, otherwise than on account of your indemnity agreement
contained in this paragraph 1.11. You 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 you
and approved by the Fund. In the event you elect to assume the defense of any
such suit and retain counsel of good standing approved by the Fund, the
defendant or defendants in such suit shall bear the fees and expenses of any
additional counsel retained by any of them; but in the case you do not elect to
assume the defense of any such suit, you will reimburse the Fund, the Fund's
officers and directors, or the controlling person or persons named as defendant
or defendants in such suit, for the reasonable fees and expenses of any counsel
retained by the Fund or them. Your indemnification agreement contained in this
paragraph 1.11 and your representations and warranties in this agreement shall
remain operative and in full force and effect regardless of any investigation
made by you or on behalf of you, your officers and directors, or any controlling
person, and shall survive the delivery of any Shares. This agreement of
indemnity will inure exclusively to the Fund's benefit, to the benefit of the
Fund's officers and Board members, and their respective estates, and to the
benefit of any controlling persons and their successors. You agree promptly to
notify the Fund of the commencement of any litigation or proceedings against you
or any of your officers or directors in connection with the issue and sale of
Shares.
1.12 No Shares shall be offered by either you or the Fund under any of the
provisions of this agreement and no orders for the purchase or sale of such
Shares hereunder shall be accepted by the Fund 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 of said Act, as amended, is not on file with the
Securities and Exchange Commission or if the Fund or its Transfer Agent has
notified you that Shares are not registered and/or qualified for sale in a given
state or jurisdiction; provided, however, that nothing contained in this
paragraph 1.12 shall in any way restrict or have an application to or bearing
upon the Fund's obligation to repurchase any Shares from any shareholder in
accordance with the provisions of the Fund's prospectus or charter documents.
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1.13 The Fund agrees to advise you promptly in writing:
(a) of any request by the Securities and Exchange Commission for
amendments to the registration statement or prospectus then in effect or of
additional information that materially affects you;
(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 of
any proceeding for that purpose;
(c) of the happening of any event which 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 actions of the Securities and Exchange Commission with
respect to any amendments to any registration statement or prospectus which
may from time to time be filed with the Securities and Exchange Commission.
2. Offering Price
Shares of any class of the Fund offered for sale by you shall be offered
at a price per share (the "offering price") equal to (a) the net asset value
(determined in the manner set forth in the Fund's charter documents) plus (b) a
sales charge, if any and except to those persons set forth in the then-current
prospectus, which shall be the percentage of the offering price of such Shares
as set forth in the Fund's then-current prospectus. All Shares will be sold in
the manner set forth in the Fund's then current prospectus and statement of
additional information, and in compliance with applicable law. The offering
price, if not an exact multiple of one cent, shall be adjusted to the nearest
cent. In addition, Shares of any class of the Fund offered for sale by you may
be subject to a contingent deferred sales charge as set forth in the Fund's
then-current prospectus. Any payments to dealers shall be governed by a
separate agreement between you and such dealer and the Fund's then-current
prospectus.
3. Orders for and Sales of Shares
Orders for shares shall be directed to the Fund's Transfer Agent for
acceptance on behalf of the Fund. Sales of Shares shall be deemed to be made
when and where accepted by the Fund's Transfer Agent.
4. Term
This Agreement shall become effective with respect to the Fund as of the
date hereof and will continue for an initial one-year term and will continue
thereafter so long as such continuance is specifically approved at least
annually (i) by the Fund's Board or (ii) by a vote of a majority of the Shares
of the Fund or the relevant Series, as the case may be, provided that in either
event its continuance also is approved by a majority of the Board members who
are not "interested persons" 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 with respect to the Fund,
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without penalty, on not less than sixty days' notice, by the Fund's Board of
Trustees, by vote of a majority of the outstanding voting securities of such
Fund, or by you. This Agreement will automatically and immediately terminate in
the event of its "assignment." (As used in this Agreement, the terms "majority
of the outstanding voting securities," "interested person" and "assignment"
shall have the same meanings as such terms have in the Investment Company Act of
1940, as amended). You agree to notify the Fund immediately upon the event of
your expulsion or suspension by the NASD. This Agreement will automatically and
immediately terminate in the event of your expulsion or suspension by the NASD.
5. Miscellaneous
5.1 The Fund recognizes that, except to the extent otherwise agreed to by
the parties hereto, your directors, officers and employees may from time to time
serve as directors, trustees, officers and employees of corporations and
business trusts (including other investment companies), and that you or your
affiliates may enter into distribution or other agreements with such other
corporations and trusts.
5.2 No provision of this Agreement may be changed, waived, discharged or
terminated orally, but only by an instrument in writing signed by the party
against which an enforcement of the change, waiver, discharge or termination is
sought.
5.3 This Agreement shall be governed by the internal laws of the
Commonwealth of Massachusetts without giving effect to principles of conflicts
of laws.
5.4 If any provision of this Agreement shall be held or made invalid by a
court decision, statute, rule, or otherwise, the remainder of this Agreement
shall not be affected thereby. This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors.
Please confirm that the foregoing is in accordance with your
understanding and indicate your acceptance hereof by signing below, whereupon it
shall become a binding Agreement between us.
Very truly yours,
THE XXXXXXX FUNDS
By: /s/Xxxxxx X. Xxxxxxx
-----------------------------
Name: Xxxxxx X. Xxxxxxx
---------------------------
Title: Assistant Treasurer
--------------------------
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Accepted:
FUNDS DISTRIBUTOR, INC.
By: /s/ Xxxxx X. Xxxxxxxx
-------------------------------
Name: Xxxxx X. Xxxxxxxx
------------------------------
Title: President & CEO
----------------------------
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EXHIBIT A
Series of the Funds
-------------------
THE XXXXXXX FUNDS*
Global Fund
Global Equity Fund
Global Bond Fund
U.S. Balanced Fund
U.S. Equity Fund
U.S. Bond Fund
Non-U.S. Equity Fund
*Each Series above offers two separate classes of shares - the SwissKey Fund
class and the Xxxxxxx Fund class.
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EXHIBIT A
Series of Funds
---------------
THE XXXXXXX FUNDS*
Global Fund
Global Equity Fund
Global Bond Fund
U.S. Balanced Fund
U.S. Equity Fund
U.S. Bond Fund
Non-U.S. Equity Fund
U.S. Large Capitalization Equity Fund
*Each Series offers three separate classes of shares-the SwissKey Fund class,
the Xxxxxxx Fund-Class I shares, and the Xxxxxxx Fund-Class N shares.
As amended November 24, 1997
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EXHIBIT A
Series of Funds
---------------
THE XXXXXXX FUNDS*
Global Fund
Global Equity Fund
Global Bond Fund
U.S. Balanced Fund
U.S. Equity Fund
U.S. Bond Fund
Non-U.S. Equity Fund
U.S. Large Capitalization Equity Fund
U.S. Large Capitalization Growth Fund
U.S. Small Capitalization Fund
High Yield Bond Fund
Emerging Markets Equity Fund
Emerging Markets Debt Fund
*Each Series offers three separate classes of shares-the UBS Investment Funds
shares, the Xxxxxxx Fund-Class I shares, and the Xxxxxxx Fund-Class N shares.
This Amendment has been agreed to as of this 24th day of August, 1998 by
the undersigned.
THE XXXXXXX FUNDS
Name: /s/ E. Xxxxxx XxXxxxxx
----------------------
By: E. Xxxxxx XxXxxxxx
Title: President
Accepted:
FUNDS DISTRIBUTOR, INC.
Name: /s/ Xxxxx X. Xxxxxxxx
---------------------
By: Xxxxx X. Xxxxxxxx
Title: President and Chief Executive Officer
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