DISTRIBUTION AGREEMENT
XXXXXXXXX XXXXXX INCOME FUNDS
INVESTOR CLASS
This Agreement is made as of February 9, 2001, between
Xxxxxxxxx Xxxxxx Income Funds, a Delaware business trust ("Trust"), and
Xxxxxxxxx Xxxxxx Management Inc., a New York corporation (the "Distributor"), on
behalf of Income Funds Investor Class.
WHEREAS, the Trust is registered under the Investment
Company Act of 1940, as amended ("1940 Act"), as an open-end, diversified
management investment company and has established several separate series of
shares ("Series"), with each Series, having one or more classes and with each
Series having its own assets and investment policies; and
WHEREAS, the Trust desires to retain the Distributor to
furnish distribution services to the Investor Class of each Series listed in
Schedule A attached hereto, and to the Investor Class of such other Series of
the Trust hereinafter established as agreed to from time to time by the parties,
evidenced by an addendum to Schedule A (hereinafter "Series" shall refer to each
Series which is subject to this Agreement and all agreements and actions
described herein to be made or taken by a Series shall be made or taken by the
Trust on behalf of the Series), and the Distributor is willing to furnish such
services,
NOW, THEREFORE, in consideration of the premises and mutual
covenants herein contained, the parties agree as follows:
1. The Trust hereby appoints the Distributor as
agent to sell the shares of beneficial interest of the Investor Class of each
Series (the "Shares") and the Distributor hereby accepts such appointment. All
sales by the Distributor shall be expressly subject to acceptance by the Trust,
acting on behalf of the Series. The Trust may suspend sales of the Shares of any
one or more Series at any time, and may resume sales at any later time.
2. (a) The Distributor agrees that (i) all Shares
sold by the Distributor shall be sold at the net asset value ("NAV") thereof as
described in Section 3 hereof, and (ii) the Series shall receive 100% of such
NAV.
(b) The Distributor may enter into agreements,
in form and substance satisfactory to the Trust, with dealers selected by the
Distributor, providing for the sale to such dealers and resale by such dealers
of Shares at their NAV.
(c) The Distributor can use any of the
officers and employees of Xxxxxxxxx Xxxxxx, LLC to provide any of the services
or reports required under this agreement.
3. The Trust agrees to supply to the Distributor,
promptly after the time or times at which NAV is determined, on each day on
which the New York Stock Exchange is open for unrestricted trading and on such
other days as the Board of Trustees of the Trust ("Trustees") may from time to
time determine (each such day being hereinafter called a "business day"), a
statement of the NAV of each Series having been determined in the manner set
forth in the then-current Prospectus and Statement of Additional Information
("SAI") of the Investor Class of each Series. Each determination of NAV shall
take effect as of such time or times on each business day as set forth in the
then-current Prospectus of the Investor Class of each Series.
4. Upon receipt by the Trust at its principal place
of business of a written order from the Distributor, together with delivery
instructions, the Trust shall, if it elects to accept such order, as promptly as
practicable, cause the Shares purchased by such order to be delivered in such
amounts and in such names as the Distributor shall specify, against payment
therefor in such manner as may be acceptable to the Trust. The Trust may, in its
discretion, refuse to accept any order for the purchase of Shares that the
Distributor may tender to it.
5. (a) All sales literature and advertisements
used by the Distributor in connection with sales of Shares shall be subject to
approval by the Trust. The Trust authorizes the Distributor, in connection with
the sale or arranging for the sale of Shares of any Series, to provide only such
information and to make only such statements or representations as are contained
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in the Series' then-current Prospectus and SAI of the Investor Class or in such
financial and other statements furnished to the Distributor pursuant to the next
paragraph or as may properly be included in sales literature or advertisements
in accordance with the provisions of the Securities Act of 1933 (the "1933
Act"), the 1940 Act and applicable rules of self-regulatory organizations.
Neither the Trust nor any Series shall be responsible in any way for any
information provided or statements or representations made by the Distributor or
its representatives or agents other than the information, statements and
representations described in the preceding sentence.
(b) Each Series shall keep the Distributor
fully informed with regard to its affairs, shall furnish the Distributor with a
certified copy of all of its financial statements and a signed copy of each
report prepared for it by its independent auditors, and shall cooperate fully in
the efforts of the Distributor to negotiate and sell Shares of such Series and
in the Distributor's performance of all its duties under this Agreement.
6. The Distributor, as agent of each Series and for
the account and risk of each Series, is authorized, subject to the direction of
the Trust, to redeem outstanding Shares of such Series when properly tendered by
shareholders pursuant to the redemption right granted to such Series'
shareholders by the Trust Instrument of the Trust, as from time to time in
effect, at a redemption price equal to the NAV per Share of such Series next
determined after proper tender and acceptance. The Trust has delivered to the
Distributor a copy of the Trust's Trust Instrument as currently in effect and
agrees to deliver to the Distributor any amendments thereto promptly.
7. The Distributor shall assume and pay or reimburse
each Series for the following expenses of such Series: (i) costs of printing and
distributing reports, prospectuses and SAIs for other than existing shareholders
used in connection with the sale or offering of the Series' Shares; (ii) costs
of preparing, printing and distributing all advertising and sales literature
relating to such Series printed at the instruction of the Distributor; and (iii)
counsel fees and expenses in connection with the foregoing. The Distributor
shall pay all its own costs and expenses connected with the sale of Shares.
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8. Each Series shall maintain a currently effective
Registration Statement on Form N-1A with respect to the Shares of such Series
and shall file with the Securities and Exchange Commission (the "SEC") such
reports and other documents as may be required under the 1933 Act and the 1940
Act or by the rules and regulations of the SEC thereunder.
Each Series represents and warrants that the
Registration Statement, post-effective amendments, Prospectus and SAI (excluding
statements relating to the Distributor and the services it provides that are
based upon written information furnished by the Distributor expressly for
inclusion therein) of such Series shall not contain any untrue statement of
material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading, and that all
statements or information furnished to the Distributor, pursuant to Section 5(b)
hereof, shall be true and correct in all material respects.
9. (a) This Agreement, as amended, shall become
effective on February 9, 2001 and shall remain in full force and effect until
June 30, 2001 and may be continued from year to year thereafter; PROVIDED, that
such continuance shall be specifically approved each year by the Trustees or by
a majority of the outstanding voting securities of the Investor Class of the
Series, and in either case, also by a majority of the Trustees who are not
interested persons of the Trust or the Distributor ("Disinterested Trustees").
This Agreement may be amended as to any Series with the approval of the Trustees
or of a majority of the outstanding voting securities of the Investor Class of
such Series; PROVIDED, that in either case, such amendment also shall be
approved by a majority of the Disinterested Trustees.
(b) Either party may terminate this Agreement
without the payment of any penalty, upon not more than sixty days' nor less than
thirty days' written notice delivered personally or mailed by registered mail,
postage prepaid, to the other party; PROVIDED, that in the case of termination
by any Series, such action shall have been authorized (i) by resolution of the
Trustees, or (ii) by vote of a majority of the outstanding voting securities of
the Investor Class of such Series, or (iii) by written consent of a majority of
the Disinterested Trustees.
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(c) This Agreement shall automatically
terminate if it is assigned by the Distributor.
(d) Any question of interpretation of any term
or provision of this Agreement having a counterpart in or otherwise derived from
a term or provision of the 1940 Act shall be resolved by reference to such term
or provision of the 1940 Act and to interpretation thereof, if any, by the
United States courts or, in the absence of any controlling decision of any such
court, by rules, regulations or orders of the SEC validly issued pursuant to the
1940 Act. Specifically, the terms "interested persons," "assignment" and "vote
of a majority of the outstanding voting securities," as used in this Agreement,
shall have the meanings assigned to them by Section 2(a) of the 1940 Act. In
addition, when the effect of a requirement of the 1940 Act reflected in any
provision of this Agreement is modified, interpreted or relaxed by a rule,
regulation or order of the SEC, whether of special or of general application,
such provision shall be deemed to incorporate the effect of such rule,
regulation or order. The Trust and the Distributor may from time to time agree
on such provisions interpreting or clarifying the provisions of this Agreement
as, in their joint opinion, are consistent with the general tenor of this
Agreement and with the specific provisions of this Section 9(d). Any such
interpretations or clarifications shall be in writing signed by the parties and
annexed hereto, but no such interpretation or clarification shall be effective
if in contravention of any applicable federal or state law or regulations, and
no such interpretation or clarification shall be deemed to be an amendment of
this Agreement.
No term or provision of this Agreement shall be
construed to require the Distributor to provide distribution services to any
series of the Trust other than the Series, or to require Investor Class or any
Series to pay any compensation or expenses that are properly allocable, in a
manner approved by the Trustees, to a class or series of the Trust other than
Investor Class or such Series.
(e) This Agreement is made and to be
principally performed in the State of New York, and except insofar as the 1940
Act or other federal laws and regulations may be controlling, this Agreement
shall be governed by, and construed and enforced in accordance with, the
internal laws of the State of New York.
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(f) This Agreement is made by the Trust solely
with respect to the Series, and the obligations created hereby with respect to
Investor Class of one Series bind only assets belonging to Investor Class of
that Series and are not binding on any other series of the Trust.
10. The Distributor or one of its affiliates may from
time to time deem it desirable to offer to the list of shareholders of Investor
Class of each Series the shares of other mutual funds for which it acts as
Distributor, including other series of the Trust or other products or services;
however, any such use of the list of shareholders of any Series shall be made
subject to such terms and conditions, if any, as shall be approved by a majority
of the Disinterested Trustees.
11. The Distributor shall look only to the assets of
Investor Class of a Series for the performance of this Agreement by the Trust on
behalf of such Series, and neither the shareholders, the Trustees nor any of the
Trust's officers, employees or agents, whether past, present or future, shall be
personally liable therefor.
IN WITNESS WHEREOF, the parties hereto have caused this
instrument to be duly executed by their duly authorized officers and under their
respective seals.
XXXXXXXXX XXXXXX INCOME FUNDS
By:
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Title:
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XXXXXXXXX XXXXXX MANAGEMENT INC.
By:
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Title:
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XXXXXXXXX XXXXXX INCOME FUNDS
INVESTOR CLASS
DISTRIBUTION AGREEMENT
SCHEDULE A
The Series currently subject to this Agreement are as follows:
Xxxxxxxxx Xxxxxx Cash Reserves
Xxxxxxxxx Xxxxxx Government Money Fund
Xxxxxxxxx Xxxxxx High Yield Bond Fund
Xxxxxxxxx Xxxxxx Limited Maturity Bond Fund
Xxxxxxxxx Xxxxxx Municipal Money Fund
Xxxxxxxxx Xxxxxx Municipal Securities Trust
Dated: February 9, 2001
