TEMPLETON GLOBAL INVESTMENT TRUST
000 X. Xxxxxxx Xxxxxxxxx, Xxxxx 0000
Xxxx Xxxxxxxxxx, Xxxxxxx 00000-0000
Franklin/Xxxxxxxxx Distributors, Inc.
000 Xxxxxxxx Xxxxxxx
Xx. Xxxxxxxxxx, Xxxxxxx 00000-0000
Re: Distribution Agreement
Gentlemen:
We are a Delaware statutory trust operating as an open-end management investment
company. As such, our company, Templeton Global Investment Trust (referred to
herein as the "Company"), comprised of three series (Xxxxxxxxx International (Ex
EM) Fund, Franklin Xxxxxxxxx Non-U.S. Dynamic Core Equity Fund, and Templeton
Income Fund) and any additional series that may be created in the future, is
registered under the Investment Company Act of 1940, (the "1940 Act"), and its
shares are registered under the Securities Act of 1933 (the "1933 Act"). We
desire to begin issuing our authorized but unissued shares of common stock (the
"Shares") to authorized persons in accordance with applicable Federal and State
securities laws. Shares will be made available for the Funds (referred to herein
as a "Fund" or collectively as the "Funds") formed as a series of the Company.
You have informed us that your company is registered as a broker-dealer under
the provisions of the Securities Exchange Act of 1934 and that your company is a
member of the National Association of Securities Dealers, Inc. You have
indicated your desire to act as the exclusive selling agent and distributor for
the Shares. We have been authorized to execute and deliver this Agreement to you
by a resolution of our Board of Trustees passed at a meeting at which a majority
of our Trustees, including a majority who are not otherwise interested persons
of the Company and who are not interested persons of our investment adviser, its
related organizations or with you or your related organizations, were present
and voted in favor of the said resolution approving this Agreement.
1. APPOINTMENT OF UNDERWRITER. Upon the execution of this
Agreement and in consideration of the agreements on your part herein expressed
and upon the terms and conditions set forth herein, we hereby appoint you as the
exclusive sales agent for our Shares (except for sales made directly by the
Funds without sales charge) and agree that we will deliver such Shares as you
may sell. You agree to use your best efforts to promote the sale of Shares, but
are not obligated to sell any specific number of Shares.
2. INDEPENDENT CONTRACTOR. You will undertake and discharge
your obligations hereunder as an independent contractor and shall have no
authority or power to obligate or bind us by your actions, conduct or contracts
except that you are authorized to accept orders for the purchase or repurchase
of Shares as our agent. You may appoint sub-agents or distribute through dealers
or otherwise as you may determine from time to time, but this Agreement shall
not be construed as authorizing any dealer or other person to accept orders for
sale or repurchase on our behalf or otherwise act as our agent for any purpose.
You may allow such sub-agents or dealers such commissions or discounts not
exceeding the total sales commission as you shall deem advisable so long as any
such commissions or discounts are set forth in our current prospectus to the
extent required by the applicable Federal and State securities laws.
3. OFFERING PRICE. The Shares of the Funds shall be offered for
sale at a price equivalent to their respective net asset value (as specified in
the Fund's prospectus). On each business day on which the New York Stock
Exchange is open for business, we will furnish you with the net asset value of
the Shares which shall be determined in accordance with our then effective
prospectus. All Shares will be sold in the manner set forth in our then
effective prospectus.
4. TERMS AND CONDITIONS OF SALES. Shares of the Funds shall be
offered for sale only in those jurisdictions where they have been properly
registered or are exempt from registration, and only to those groups of people
which the Board of Trustees may from time to time determine to be eligible to
purchase such shares.
5. PAYMENT OF SHARES. At or prior to the time of delivery of
any of our Shares you will pay or cause to be paid to our Custodian or its
successor, for our account, an amount in cash equal to the net asset value of
such Shares. In the event that you pay for Shares sold by you prior to your
receipt of payment from purchasers you are authorized to reimburse yourself for
the net asset value of such Shares when received by you.
6. PURCHASES FOR YOUR OWN ACCOUNT. You shall not purchase our
Shares for your own account for purposes of resale to the public, but you may
purchase Shares for your own investment account upon your written assurance that
the purchase is for investment purposes and that the Shares will not be resold
except through redemption by us.
7. ALLOCATION OF EXPENSES. We will pay the expenses:
(a) Of the preparation of the audited and certified financial
statements of our company to be included in any
Post-Effective Amendments ("Amendments") to our Registration
Statement under the 1933 Act or 1940 Act, including the
prospectus and statement of additional information included
therein;
(b) Of the preparation, including legal fees, and of printing all
Amendments or supplements filed with the Securities and
Exchange Commission, including the copies of the
prospectuses included in the Amendments and the first 10
copies of the definitive prospectuses or supplements
thereto, other than those necessitated by your (including
your "Parent's") activities or Rules and Regulations related
to your activities where such Amendments or supplements
result in expenses which we would not otherwise have
incurred; and
(c) Of the preparation, printing and distribution of any reports
or communications which we send to our existing shareholders.
(d) Of filing and other fees to Federal and State securities
regulatory authorities necessary to continue offering our
Shares of any of the Funds as you may require in connection
with your duties as underwriter.
You will pay the expenses:
(a) Of printing the copies of the prospectuses and any
supplements thereto and statement of additional information
which are necessary to continue to offer our Shares;
(b) Of the preparation, excluding legal fees, and printing of all
Amendments and supplements to our prospectuses and statement
of additional information if the Amendment or supplement
arises from your (including your "Parent's") activities or
Rules and Regulations related to your activities and those
expenses would not otherwise have been incurred by us;
(c) Of printing additional copies, for use by you as sales
literature, of reports or other communications which we have
prepared for distribution to our existing shareholders; and
(d) Incurred by you in advertising, promoting and selling our
Shares.
8. FURNISHING OF INFORMATION. We will furnish to you such
information with respect to the Funds and their Shares, in such form and signed
by such of our officers as you may reasonably request, and we warrant that the
statements therein contained when so signed will be true and correct. We will
also furnish you with such information and will take such action as you may
reasonably request in order to qualify our Shares for sale to the public under
the Blue Sky Laws of jurisdictions in which you may wish to offer them. We will
furnish you with annual audited financial statements of our books and accounts
certified by independent public accountants, with semi-annual financial
statements prepared by us, and, from time to time, with such additional
information regarding our financial condition as you may reasonably request.
9. CONDUCT OF BUSINESS. Other than our currently effective
prospectus, 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 will furnish us with
copies of all such materials prior to their use and no such material shall be
published if we shall reasonably and promptly object.
You shall comply with the applicable Federal and State laws
and regulations where our Shares are offered for sale and conduct your affairs
with us and with dealers, brokers or investors in accordance with the Rules of
Fair Practice of the National Association of Securities Dealers, Inc. and in
strict accordance with the applicable provisions of the Articles of
Incorporation and By-Laws of the Fund.
In the absence of willful misfeasance, bad faith or gross
negligence on your part, or of reckless disregard of your obligations hereunder,
you shall not be subject to liability for any act or omission in the course of,
or connected with, rendering services hereunder.
10. OTHER ACTIVITIES. Your services pursuant to this Agreement
shall not be deemed to be exclusive, and you may render similar services and act
as an underwriter, distributor or dealer for other investment companies in the
offering of their shares.
11. TERM OF AGREEMENT. This Agreement shall become effective on
the date of its execution, and shall remain in effect for a period of two (2)
years. The Agreement is renewable annually thereafter with respect to the Fund
for successive periods not to exceed one year (i) by a vote of a majority of the
outstanding voting securities of the Funds or by a vote of the Board of Trustees
of the Company, and (ii) by a vote of a majority of the trustees of the Company
who are not parties to the Agreement or interested persons of any parties to the
Agreement (other than as Trustees of the Company), cast in person at a meeting
called for the purpose of voting on the Agreement.
This Agreement may at any time be terminated by the Funds
without the payment of any penalty, (i) either by vote of the Board of Trustees
of the Company or by vote of a majority of the outstanding voting securities of
the Funds, on 60 days' written notice to you; or (ii) by you on 60 days' written
notice to the Fund; and shall immediately terminate with respect to the Fund in
the event of its assignment.
12. SUSPENSION OF SALES. We reserve the right at all times to
suspend or limit the public offering of the Shares of the Funds upon two days'
written notice to you.
13. MISCELLANEOUS. This Agreement shall be subject to the laws
of the State of California and shall be interpreted and construed to further
promote the operation of the Company as an open-end investment company. As used
herein the terms "Net Asset Value", "Offering Price", "Investment Company",
"Open-End Investment Company", "Assignment", "Principal Underwriter",
"Interested Person", "Parents", "Affiliated Person", and "Majority of the
Outstanding Voting Securities" shall have the meanings set forth in the 1933 Act
or the 1940 Act and the Rules and Regulations thereunder.
If the foregoing meets with your approval, please acknowledge your acceptance by
signing each of the enclosed copies, whereupon this will become a binding
agreement as of the date set forth below.
Very truly yours,
TEMPLETON GLOBAL INVESTMENT TRUST
By:/s/XXXXX X. XXXX
---------------------------------
Xxxxx X. Xxxx
Vice President and Assistant Secretary
Accepted:
FRANKLIN XXXXXXXXX DISTRIBUTORS, INC.
By:/s/XXXXX X. XXXXX
--------------------------------
Xxxxx X. Xxxxx
President
DATED: June 28, 2005
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