Exhibit 6.2
Form of Sales Agreement
PHOENIX EQUITY PLANNING CORPORATION
000 Xxxxxx Xxxxxx Xxxxxxxxx
Xxxxxxx, Xxxxxxxxxxx 00000-0000
000-000-0000
(000) 000-0000
PHOENIX FAMILY OF FUNDS
SALES AGREEMENT
TO: Phoenix Equity Planning Corporation FROM:
000 Xxxxxx Xxxxxx Xxxxxxxxx
Xxxxxxx, Xxxxxxxxxxx 00000
Sir/Madam:
We desire to enter into an Agreement with you for the sale and distribution of
shares of registered investment companies (which shall collectively be referred
to hereafter as the "Funds") for which you are national distributor or principal
underwriter and which may be listed in the Annex A hereto which such Annex may
be amended by you from time to time. Upon acceptance of this Agreement by you,
we understand that we may offer and sell shares of each of the Funds (hereafter
"Shares") subject, however, to all of the terms and conditions hereof including
your right to suspend or cease the sale of such shares.
1. We understand and agree that in all sales of Shares to the public we shall
be acting as dealer for our own account: that all purchase orders and
applications submitted to you by us are subject to acceptance or rejection
by you in your sole discretion: and that each purchase will be deemed to
have been consummated in your principal office subject to your acceptance
and effective only upon confirmation in us by you.
2. We agree that all purchases of Shares by us shall be made only for the
purpose of covering purchase orders already received from our customers
(who may be any person other than a securities dealer or broker) or for
our own bona fide investment.
3. We shall offer and sell shares purchased pursuant to this Agreement for
the purpose of covering purchase orders of our customers at the current
public offering price for such Shares ("Offering Price") as set forth in
the current prospectus of each of the funds.
4. We shall pay you for Shares purchased by us within five (5) business days
of the date of your confirmation to us of such purchase. The purchase
price shall be the Offering Price, less only the applicable dealer
discount ("Dealer Discount"), if any, as set forth in Annex A hereto. We
agree that you have the right, without notice, to cancel any order for
which payment has not been received by you as provided in this paragraph,
in which case you may hold us responsible for any loss suffered by you
resulting from our failure to make payment as aforesaid.
5. We understand and agree that any Dealer Discount or fee is subject to
change from time to time. Any orders placed after the effective date of
any such Dealer Discount change shall be subject to the Dealer Discounts
in effect at the time such order is received by you.
6. We understand and agree that Shares purchased by us under this Agreement
will not be delivered until payment has been received by you. Delivery of
shares will be made by credit to a shareholder open account unless
delivery of certificates is specified in the purchase order. In order to
avoid unnecessary delay, it is understood that, at our request, any Shares
resold by us to one of our customers will be delivered (whether by credit
to a shareholder open account or by delivery of certificates) in the name
of our customer.
PEP 80 (5-92)
7. We understand that on all purchases of Shares to which the terms of this
Agreement are applicable by a person for whom we are dealer of record, you
will pay us an amount equal to the Dealer Discount or fees which would
have been paid to us with respect to such Shares if such Shares had been
purchased through us. We understand and agree that the dealer of record
for this purpose shall be the dealer through whom such person most
recently purchased Shares of such fund. We understand that all amounts
payable to us under this paragraph and currently payable under this
agreement will be paid as of the end of each month unless specified
otherwise for the total amount of Shares to which this paragraph is
applicable but may be paid more frequently as you may determine in your
discretion.
8. You appoint the transfer agent for each of the Funds as your agent to
execute the purchase transaction of Shares and to confirm such purchases
to our customers on our behalf, and we guarantee the legal capacity of our
customers so purchasing such shares. We further understand if a customer's
account is established without the customer signing the application form,
we represent that the instructions relating to the registration and
shareholder options selected (whether on the application form, in some
other document or orally) are in accordance with the customer's
instructions and we agree to indemnify the Funds, the transfer agent and
you for any loss or liability resulting from acting upon such
instructions.
9. Upon the purchase of Shares pursuant to a Letter of Intent, we will
promptly return to you any excess of the Dealer Discount previously
allowed or paid to us over that allowable in respect to such larger
purchase.
10. Unless at the time of transmitting a purchase order we advise you to the
contrary, you may consider that the investor owns no other Shares and may
further assume that the investor is not entitled to any lower sales charge
than that accorded to a single transaction in the amount of the purchase
order as set forth in Annex A hereto.
11. We understand and agree that if any Shares purchased by us under the terms
of this Agreement are, within seven (7) business days after the date of
your confirmation to us of the original purchase order for such shares,
repurchased by you as agent for such fund or are tendered to such fund for
redemption, we shall forfeit the right to, and shall pay over to you the
amount of, any Dealer Discount allowed to us with respect to such Shares.
It is understood that you will forthwith pay over such amount to such fund
and also shall pay over to such fund your share of the Sales Charge, if
any, on the original transaction. We understand that you will notify us of
such repurchase or redemption within ten (10) days of the date upon which
certificates are delivered to you or to such fund or the date upon which
the holder of Shares held in a shareholder open account places or causes
to be placed to you or with such fund an order to have such Shares
repurchased or redeemed.
12. We agree that, in the case of any repurchase of any Shares made more than
seven (7) business days after confirmation by you of any purchase of such
Shares, except in the case of Shares purchased by us from you for our own
bona fide investment, we will act only as agent for the holders of such
Shares and will place the orders for repurchase only with you. It is
understood that we may charge the holder of such Shares a fair commission
for handling the transaction.
13. Your obligations to us under this Agreement are subject to all the
provisions of the respective distribution agreements entered into between
you and each of the Funds. We understand and agree that in performing our
services under this agreement we are acting in the capacity of an
independent contractor, and you are in no way responsible for the manner
of our performance or for any of our acts or omissions in connection
therewith. Nothing in the Agreement shall be construed to constitute us or
any of our agents, employees or representatives as your agent, partner or
employee or the agent, partner or employee of any of the Funds.
14. We understand that you will supply us with reasonable quantities of the
current prospectus and periodic reports to shareholders for each of the
Funds. We agree not to use any other advertising or sales material
relating to the sale of shares of any of the Funds unless other
advertising or sales material is approved in writing by you.
15. We shall offer and sell Shares, and execute telephone exchanges, only in
accordance with the terms and conditions of the then current prospectus of
each of the Funds and subject to the provisions of this Agreement, and we
will make no representations not contained in any such prospectus or in
any authorized supplemental material supplied by you. We will use our best
efforts in the development and promotion of sales of the Shares covered by
this Agreement, and agree to be responsible for the proper instruction and
training of all sales representatives employed by us in order that such
Shares will be offered in accordance with terms and conditions of this
Agreement and all applicable laws, rules and regulations. We agree to hold
you harmless and indemnify you in the event that we or any of our sales
representatives should violate any law, rule or regulation or any
provisions of this Agreement which may result in possible liability to
you. In addition, in consideration for the extension of the right to
exercise the telephone exchange privilege to us and our registered
representatives, we acknowledge that neither the Funds nor the Transfer
Agent nor Equity Planning will be liable for any loss, injury or damage
incurred as a result of acting upon, nor will they be responsible for the
authenticity of any telephone instructions, and agree that we will
indemnify and hold harmless the Funds, Equity Planning and the Transfer
Agent against any loss, injury or damage resulting from any telephone
exchange instruction from us or our registered representatives. (Telephone
instructions will be recorded on tape.) In the event you determine to
refund any amounts paid by any investor by reason of any such violation on
our part, we shall forfeit the right to, and pay over to you, the amount
of any dealer discount allowed to us with respect to the transaction for
which the refund is made. All expenses which we incur in connection with
our activities under this Agreement shall be borne by us.
16. We represent that we are properly registered as a broker or dealer under
the Securities Exchange Act of 1934 and are members of the National
Assocation of Securities Dealers, Inc. ("NASD") and agree to maintain
membership in the NASD or, in the alternative, that we are foreign dealers
not eligible for membership in the NASD. We agree to notify you promptly
of any change, termination, or suspension of the foregoing status. We
agree to abide by all the rules and regulations of the NASD including
Section 26 of Article III of the Rules of Fair Practice which is
incorporated herein by reference as if set forth in full. We further agree
to comply with all applicable state and Federal laws and the rules and
regulations of applicable regulatory agencies. We further agree that we
will not sell, or offer for sale, Shares in any state or jurisdiction in
which such Shares have not been duly registered or qualified for sale.
17. Either party may terminate this Agreement for any reason by written or
telegraphic notice to the other party which termination shall become
effective fifteen (15) days after the date of mailing or telegraphing such
notice to the other party. You may also terminate this Agreement for cause
or as a result of a violation by us, as determined by you in your
discretion, of any of the provisions of this Agreement, said termination
to be effective on the date of mailing written or telegraphing notice to
us of the same. Without limiting the generality of the foregoing, our own
expulsion from the NASD will automatically terminate this Agreement
without notice. Our suspension from the NASD of violation or applicable
state or Federal laws or rules and regulations of applicable regulatory
agencies will terminate this Agreement effective upon the date of your
mailing written notice or telegraphing notice to us of such termination.
Your failure to terminate this Agreement for any cause shall not
constitute a waiver of your right to so terminate at a later date for such
cause.
18. We understand and agree that all communications and notices to you or to
us shall be sent to the addresses set forth at the beginning of this
Agreement or to such other addresses as either party may specify in
writing from time to time.
19. This Agreement shall become effective upon the date of its acceptance by
you as set forth herein. This Agreement and all rights and obligations of
the parties hereunder shall be governed by and construed under the laws of
the State of Connecticut. This Agreement is not assignable or
transferable, except that you may assign or transfer this Agreement to any
successor distributor of the Shares described herein.
ACCEPTED ON BEHALF OF
PHOENIX EQUITY PLANNING CORPORATION DEALER FIRM
Date_______________________________________________________ ________________________________________________________________
NAME OF DEALER
By Xxxx X. Xxxxxx, Xx., Snr. Vice Pres., Sales & Mktg.
___________________________________________________________ Date ___________________________________________________________
NAME AND TITLE
By _____________________________________________________________
NAME AND TITLE
/s/ Xxxx X. Xxxxxx,Xx.
___________________________________________________________ ________________________________________________________________
AUTHORIZED SIGNATURE AUTHORIZED SIGNATURE
NASD - CRD - NUMBER _____________________________________
ANNEX A
DEALER'S AGREEMENT WITH
PHOENIX EQUITY PLANNING CORPORATION
The public offering price of CLASS A Shares of all Series of the Phoenix Series
Fund (except the Money Market Fund Series) all Portfolios of the Phoenix
Multi-Portfolio Fund and the Phoenix Total Return Fund Inc., is the net asset
value plus a sales charge. The offering price so determined becomes effective
after the purchase order is received by Equity Planning or the Trust's agent,
State Street Bank and Trust Company. The sales charge is reduced on a graduated
scale on single purchases of $50,000 or more as shown below:
CLASS A SHARES
--------------
SALES CHARGE SALES CHARGE DEALER DISCOUNT OR AGENCY
AMOUNT OF TRANSACTION AS PERCENTAGE AS PERCENTAGE FEE AS PERCENTAGE
AT OFFERING PRICE OF OFFERING PRICE OF AMOUNT INVESTED OF OFFERING PRICE*
----------------- ----------------- ------------------ ------------------
Less than $50,000 4.75% 4.99% 4.25%
$50,000 but under $100,000 4.50% 4.71% 4.00%
$100,000 but under $250,000 3.50% 3.63% 3.00%
$250,000 but under $500,000 3.00% 3.09% 2.75%
$500,000 but under $1,000,000 2.00% 2.04% 1.75%
$1,000,000 or more . . . None None (see below*)
*In connection with purchase of CLASS A shares of $1,000,000 or more (and
subsequent purchases in any amount) including purchases of shares of the Phoenix
Money Market Fund Series, Equity Planning may pay broker-dealers from its own
profits and resources, a percentage of the net asset value of any shares sold
(excluding Phoenix Money Market Fund Series) as set forth below:
PURCHASE AMOUNT PAYMENT TO BROKER/DEALERS
--------------- -------------------------
$1,000,000 - $2,000,000 .75 of 1%
$2,000,000 - $4,000,000 .50 of 1%
$4,000,000 or more .25 of 1%
EFFECTIVE JANUARY 1, 1994: CLASS B shares will be offered on sales of shares of
the PHOENIX HIGH YIELD FUND SERIES AND PHOENIX U.S. GOVERNMENT FUND SERIES both
of which are Series of the Phoenix Series Fund, on sales of Shares of the
PHOENIX TAX EXEMPT BOND PORTFOLIO which is a Portfolio of the Phoenix
Multi-Portfolio Fund and on shares of the PHOENIX TOTAL RETURN FUND INC. Class B
shares are sold at net asset value per share without the imposition of a sales
charge at the time of purchase. Shares which are redeemed within six years of
purchase will be subject to a contingent deferred sales charge, as described in
the Fund's current prospectus, at the rates set forth below:
CLASS B SHARES:
---------------
CONTINGENT DEFERRED SALES CHARGE
AS A PERCENTAGE OF DOLLAR AMOUNT
YEARS SINCE PURCHASE SUBJECT TO CHARGE
-------------------- -----------------
First 4%
Second 4%
Third 3%
Fourth 3%
Fifth 2%
Sixth 1%
Seventh 0
PHOENIX FUNDS DISTRIBUTION PLAN
-------------------------------
Under their respective Distribution Plans, each of the Phoenix Funds may pay
Equity Planning an amount annually not to exceed a certain percentage of the
average daily net assets of the Fund, as shown below. Equity Planning may pay to
qualifying dealers an amount up to this percentage of the average daily net
assets in qualifying shares sold by such dealers as described in the Fund's
prospectus.
FUND NAME DISTRIBUTION PLAN
--------- -----------------
PHOENIX SERIES FUND CLASS A .25% CLASS B .75%
PHOENIX MULTI-PORTFOLIO FUND .25% .75%
PHOENIX TOTAL RETURN FUND .25% .75%
*Equity Planning may sponsor sales contests and provide to all qualifying
dealers from its own profits and resources, additional compensation in the form
of trips and merchandise. Brokers or dealers other than Equity Planning may also
make customary additional charges for their Services in effecting purchases, if
they notify the Trust of their intention to do so.
