LADENBURG XXXXXXXX & CO. INC.
000 XXXXXXX XXXXXX
XXX XXXX, XXX XXXX 00000
800-______________
Dealer's Agreement
Ladenburg Xxxxxxxx & Co. Inc. ("Underwriter") invites you, as a
selected dealer, to participate as principal in the distribution of shares (the
"Shares") of Xxxxx Value Fund, Inc. (the "Fund"), of which it is the exclusive
underwriter. Underwriter agrees to sell to you, subject to any limitations
imposed by the Fund, Shares issued by the Fund and to promptly confirm each sale
to you. All sales will be made according to the following terms:
1. All offerings of any of the Shares by you must be made at the net
asset value, and shall be subject to the conditions of offering, set forth in
the then current Prospectus of the Fund and to the terms and conditions herein
set forth, and you agree to comply with all requirements applicable to you of
all applicable laws, including federal and state securities laws, the rules and
regulations of the Securities and Exchange Commission, and the Rules of Fair
Practice of the National Association of Securities Dealers, Inc. (the "NASD"),
including Section 24 of the Rules of Fair Practice of the NASD. You will not
offer the Shares for sale in any state or other jurisdiction where they are not
qualified for sale under the Blue Sky Laws and regulations of such state or
jurisdiction, or where you are not qualified to act as a dealer. Upon
application to Underwriter, Underwriter will inform you as to the states or
other jurisdictions in which Underwriter believes the Shares may legally be
sold.
2. With respect to all accounts for which you are designated as Dealer
of Record, you will receive a service fee, payable quarterly, at the annual rate
of .25% of the average balance of all such accounts during such quarter. You
hereby authorize Underwriter to act as your agent in connection with all
transactions in open accounts in which you are designated as Dealer of Record.
All designations as Dealer of Record, and all authorizations of Underwriter to
act as your Agent pursuant thereto, shall cease upon the termination of this
Agreement or upon the investor's instructions to transfer his open account to
another Dealer of Record.
3. Service fees will be paid to you at the address of your principal
office, as indicated below in your acceptance of this Agreement.
4. Underwriter reserves the right to cancel this Agreement at any time
without notice if any Shares shall be offered for sale by you at less than the
then current net asset value determined by, or for, the Fund.
5. All orders are subject to acceptance or rejection by Underwriter in
its sole discretion. The Underwriter reserves the right, in its discretion,
without notice, to suspend sales or withdraw the offering of Shares entirely.
6. Payment shall be made to the Fund and shall be received by its
Transfer Agent within three (3) business days after the acceptance of your order
or such shorter time as may be required by law. With respect to all Shares
ordered by you for which payment has not been received, you hereby assign and
pledge to Underwriter all of your right, title and interest in such Shares to
secure payment therefor. You appoint Underwriter as your agent to execute and
deliver all documents necessary to effectuate any of the transactions described
in this paragraph. If such payment is not received within the required time
period, Underwriter reserves the right, without notice, and at its option,
forthwith (a) to cancel the sale, (b) to sell the Shares ordered by you back to
the Fund, or (c) to assign your payment obligation, accompanied by all pledged
Shares, to any person. You agree that Underwriter may hold you responsible for
any loss, including loss of profit, suffered by the Fund, its Transfer Agent or
Underwriter, resulting from your failure to make payment within the required
time period.
7. No person is authorized to make any representations concerning
Shares of the Fund except those contained in the current applicable Prospectus
and Statement of Additional Information and in sales literature issued and
furnished by Underwriter supplemental to such Prospectus. Underwriter will
furnish additional copies of the current Prospectus and Statement of Additional
Information and such sales literature and other releases and information issued
by Underwriter in reasonable quantities upon request.
8. Under this Agreement, you act as principal and are not employed by
Underwriter as broker, agent or employee. You are not authorized to act for
Underwriter nor to make any representation on its behalf; and in purchasing or
selling Shares hereunder, you rely only upon the current Prospectus and
Statement of Additional Information furnished to you by Underwriter from time to
time and upon such written representations as may hereafter be made by
Underwriter to you over its signature.
9. You appoint the transfer agent for the Fund as your agent to
execute the purchase transactions of Shares in accordance with the terms and
provisions of any account, program, plan or service established or used by your
customers and to confirm each purchase to your customers on your behalf, and you
guarantee the legal capacity of your customers purchasing such Shares and any
co-owners of such Shares.
10. You will (a) maintain all records required by law relating to
transactions in the Shares, and upon the request of
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Underwriter, or the request of the Fund, promptly make such records available to
Underwriter or to the Fund as are requested, and (b) promptly notify Underwriter
if you experience any difficulty in maintaining the records required in the
foregoing clause in an accurate and complete manner. In addition, you will
establish appropriate procedures and reporting forms and schedules, approved by
Underwriter and by the Fund, to enable the parties hereto and the Fund to
identify all accounts opened and maintained by your customers.
11. Each party hereto represents that it is presently, and, at all
times during the term of this Agreement, will be, a member in good standing of
the NASD and agrees to abide by all its Rules of Fair Practice including, but
not limited to, the following provisions:
(a) You shall not withhold placing customers' orders for any Shares so
as to profit yourself as a result of such withholding. You shall not purchase
any Shares from Underwriter other than for investment, except for the purpose of
covering purchase orders already received.
(b) All conditional orders received by Underwriter must be at a
specified definite price.
(c) Neither Underwriter, as exclusive underwriter for the Fund, nor you
as principal, shall purchase any Shares from a record holder at a price lower
than the net asset value then quoted by, or for, the Fund. Nothing in this
sub-paragraph shall prevent you from selling Shares for the account of a record
holder to Underwriter or the Fund at the net asset value currently quoted by, or
for, the Fund and charging the investor a fair commission for handling the
transaction.
(d) You warrant on behalf of yourself and your registered
representatives and employees that any purchase of Shares at net asset value by
the same pursuant to the terms of the Prospectus of the Fund is for investment
purposes only and not for purposes of resale. Shares so purchased may be resold
only to the Fund.
12. You agree that you will indemnify Underwriter, the Fund, the Fund's
transfer agent and the Fund's custodian and hold such persons harmless from any
claims or assertions relating to the lawfulness of your company's participation
in this Agreement and the transactions contemplated hereby or relating to any
activities of any persons or entities affiliated with your company which are
performed in connection with the discharge of your responsibilities under this
Agreement. If any such claims are asserted, the indemnified parties shall have
the right to engage in their own defense, including the selection and engagement
of legal counsel of their choosing, and all costs of such defense shall be borne
by you.
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13. This Agreement will automatically terminate in the event of its
assignment. Either party hereto may cancel this Agreement without penalty upon
ten days' written notice. This Agreement may also be terminated at any time
without penalty by the vote of a majority of the members of the Board of
Directors of the Fund who are not "interested persons" (as such term is defined
in the Investment Company Act of 1940) and who have no direct or indirect
financial interest in the Fund's Distribution Expense Plan pursuant to Rule
12b-1 under the Investment Company Act of 1940 or any agreement relating to such
Plan, including this Agreement, or by a vote of a majority of the outstanding
voting securities of the Fund on ten days' written notice.
14. All communications to Underwriter should be sent to Ladenburg
Xxxxxxxx & Co. Inc., 000 Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, or at such
other address as Underwriter may designate in writing. Any notice to you shall
be duly given if mailed or telegraphed to you at the address of your principal
office, as indicated below in your acceptance of this Agreement.
15. This Agreement supersedes any other agreement with you relating to
the offer and sale of the Shares, and relating to any other matter discussed
herein.
16. This Agreement shall be binding (i) upon placing your first order
with Underwriter for the purchase of Shares, or (ii) upon receipt by Underwriter
in New York, New York of a counterpart of this Agreement duly accepted and
signed by you, whichever shall occur first. This Agreement shall be construed in
accordance with the substantive laws of the State of New York without regard to
its conflict of law provisions. Any disputes arising out of this Agreement shall
be adjudicated solely in the courts of the State of New York or the federal
court for the Southern District of New York (in either case only within New York
County, New York). The parties each agree to personal jurisdiction and venue
solely within New York County, New York, waive any objections to personal
jurisdiction and venue in New York County, New York, and agree not to seek
personal jurisdiction and venue in any other location.
17. The undersigned, executing this Agreement on behalf of Dealer,
hereby warrants and represents that he is duly authorized to so execute this
Agreement on behalf of Dealer.
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If the foregoing is in accordance with your understanding of our
agreement, please sign and return all copies of this Agreement to the
Underwriter. ACCEPTED BY DEALER
ACCEPTED BY DEALER
By:-----------------------
Authorized Signature
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Type or Print Name, Position
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Dealer Name
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Address
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Address
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Phone
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Date
LADENBURG XXXXXXXX & CO. INC.
By:-------------------------
Date------------------------
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