Exhibit (e)(1)
FORM OF UNDERWRITING AGREEMENT
ING FUNDS TRUST
0000 X. Xxxxxxxxxx Xxxxx Xxxx
Xxxxxxxxxx, Xxxxxxx 00000
September 23, 2002
ING Funds Distributor, Inc.
0000 X. Xxxxxxxxxx Xxxxx Xxxx
Xxxxxxxxxx, Xxxxxxx 00000
Re: Underwriting Agreement
Ladies and Gentlemen:
ING FUNDS TRUST is a Delaware business trust operating as an open-end
management investment company (hereinafter referred to as the "Trust"). The
Trust is registered as such under the Investment Company Act of 1940, as amended
(the "1940 Act"), and its shares are registered under the Securities Act of
1933, as amended (the "1933 Act"). The Trust, on behalf of each of the series
listed on Schedule A hereto, which may be amended from time to time by ING Funds
Distributor, Inc. (each a "Fund," collectively the "Funds"), desires to offer
and sell the authorized but unissued shares of the Funds to the public in
accordance with applicable federal and state securities laws.
You have informed us that ING Funds Distributor, Inc. is registered as
a broker-dealer under the provisions of the Securities Exchange Act of 1934 and
is a member in good standing of the National Association of Securities Dealers,
Inc. You have indicated your desire to act as the exclusive selling agent and
principal underwriter for the shares of the Funds. We have been authorized by
the Trust to execute and deliver this Agreement to you by a resolution of our
Board of Trustees (the "Trustees") adopted at a meeting of the Trustees, at
which a majority of Trustees, including a majority of our Trustees who are not
otherwise interested persons of our investment manager or its related
organizations, were present and voted in favor of the said resolution approving
this Underwriting 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
distributor of the shares (other than sales made directly by the Trust without
sales charge) and agree that we will deliver to you such shares as may be sold
through your efforts. You agree to use your best efforts to promote the sale of
the shares, but you are not obligated to sell any specific number of the 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 the Trust or the Fund by your actions, conduct or
contracts, except that you are authorized to accept orders for the purchase or
repurchase of the shares as our agent. You may appoint sub-
agents or distribute the shares through dealers (or otherwise) as you may
determine necessary or desirable from time to time. This Agreement shall not,
however, be construed as authorizing any dealer or other person to accept orders
for sale or repurchase on our behalf or to otherwise act as our agent for any
purpose.
3. Offering Price. Shares of the Funds shall be offered at a price
equivalent to the net asset value plus, as appropriate, a variable percentage of
the public offering price as a sales load, as set forth in the Funds'
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 and become effective as of the time described in the Funds'
Prospectus. The net asset value so determined shall apply to all orders for the
purchase of the shares received by dealers prior to the time as of which net
asset value is determined, and you are authorized in your capacity as our agent
to accept orders and confirm sales at such net asset value; provided that, such
dealers notify you of the time when they received the particular order and that
the order is placed with you prior to the time as of which net asset value is
determined. To the extent that our Shareholder Servicing and Transfer Agent
(collectively, "Agent") and the Custodian(s) for any pension, profit-sharing,
employer or self-employed plan receive payments on behalf of the investors, such
Agent and Custodian(s) shall be required to record the time of such receipt with
respect to each payment, and the applicable net asset value shall be that which
is next determined and effective after the time of receipt by them. In all
events, you shall forthwith notify all of the dealers comprising your selling
group and the Agent and Custodian(s) of the effective net asset value as
received from us. Should we at any time calculate our net asset value more
frequently than once each business day, you and we will follow procedures with
respect to such additional price or prices comparable to those set forth above
in this Section 3.
4. Orders. You shall promptly advise us of all purchase orders for
shares of the Funds received by you. Any order may be rejected by us; provided,
however, that we and the Trust will not arbitrarily or without reasonable cause
refuse to accept or confirm orders for the purchase of shares of the Funds. We
or our agent will confirm orders upon receipt, will make appropriate book
entries and, upon receipt by the Trust (or its agent) of payment therefor, will
deliver deposit receipts for the shares.
5. Sales Commission.
(a) In respect of each Class of Shares other than Class B Shares:
(i) You shall be entitled to receive a sales commission on the
sale of shares of the Funds in the amounts and according to the procedures set
forth in the Funds' Prospectus then in effect under the 1933 Act (including any
supplements or amendments thereto).
(ii) In addition to the payments of the sales commissions to
you provided for in paragraph 5(a)(i), you may also receive reimbursement for
expenses or a maintenance or trail fee as may be required by and described in
the distribution plans adopted by the Fund pursuant to Rule 12b-1 under the 1940
Act (the "Distribution Plans").
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(b) In respect of the Class B Shares of the Funds, the following
provisions shall apply:
(i) In consideration of your services as principal
underwriter of the Funds' Class B Shares pursuant to this Underwriting Agreement
and our distribution plan pursuant to Rule 12b-1 under the 1940 Act in respect
of such shares (the "Class B Distribution Plan"), we agree: (I) to pay to you
monthly in arrears your "Allocable Portion" (as hereinafter defined) of a fee
(the "Distribution Fee") which shall accrue daily in an amount equal to the
product of (A) the daily equivalent of 0.75% per annum multiplied by (B) the net
asset value of the Class B Shares of the Fund outstanding on such day, and (II)
to withhold from redemption proceeds your Allocable Portion of the Contingent
Deferred Sales Charges ("CDSCs") and to pay the same over to you or at your
direction.
(ii) The Allocation Schedule attached hereto as Schedule B and
each of the provisions set forth in clauses (I) through (V) of the second
sentence of Section 1(A) of the Class B Distribution Plan as in effect on the
date hereof, together with the related definitions, are hereby incorporated
herein by reference with the same force and effect as if set forth herein in
their entirety.
(iii) In addition to the payments of amounts provided for in
Section 5(b)(i) and (ii), you may also receive reimbursement for expenses or a
maintenance or trail fee as may be required by and described in the Class B
Distribution Plan or in a Shareholder Servicing Plan applicable to the Funds.
(c) You may allow appointed 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 the
Funds' then current Prospectus, to the extent required by the applicable federal
and state securities laws.
6. 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 the Custodian, 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
from the offering price of such shares when received by you.
7. Redemption. We represent that any of the outstanding shares of the
Funds may be tendered for redemption at any time, and we represent that the
Trust will repurchase or redeem the shares so tendered in accordance with the
Trust's Declaration of Trust and Bylaws and the applicable provisions of the
Funds' Prospectus. The price to be paid to redeem or repurchase the shares shall
be equal to the net asset value, less any applicable contingent deferred sales
charge, if any, determined as set forth in the applicable Prospectus (the
"redemption price").
8. Registration of Shares. No shares shall be registered on our books
until (i) receipt by us of your written request therefor; (ii) receipt by the
Custodian and Agent of a certificate signed by an officer of the Trust stating
the amount to be received therefor; and (iii) receipt of
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payment of that amount by the Custodian. We will provide for the recording of
all shares purchased in unissued form in "book accounts," unless a request in
writing for certificates is received by the Agent, in which case certificates
for shares in such names and amounts as is specified in such writing will be
delivered by the Agent, as soon as practicable after registration thereof on the
books.
9. Purchases for Your Own Account. You shall not purchase 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 only and that the shares will not be resold
except through redemption by us.
10. Sale of Shares to Affiliates. You may sell the Class A and Class C
shares at net asset value, without a sales charge as appropriate, pursuant to a
uniform offer described in the Funds' current Prospectus (i) to our Trustees and
officers, our investment manager or your company or affiliated companies
thereof, (ii) to the bona fide, full time employees or sales representatives of
any of the foregoing who have acted as such for at least ninety (90) days, (iii)
to any trust, pension, profit-sharing, or other benefit plan for such persons,
or (iv) to any other person set forth in the Funds' then current Prospectus;
provided that such sales are made in accordance with the rules and regulations
under the 1940 Act and that such sales are made upon the written assurance of
the purchaser that the purchases are made for investment purposes only, not for
the purpose of resale to the public and that the shares will not be resold
except through redemption by us.
11. Allocation of Expenses.
(a) We will pay the following expenses in connection with the sales
and distribution of shares of the Fund:
(i) expenses pertaining to the preparation of our audited and
certified financial statements to be included in any amendments
("Amendments") to our Registration Statement under the 1933 Act,
including the Prospectuses and Statements of Additional Information
included therein;
(ii) expenses pertaining to the preparation (including legal
fees) and printing of all Amendments or supplements filed with the
Securities and Exchange Commission, including the copies of the
Prospectuses and Statements of Additional Information included in
such Amendments and the first ten (10) copies of the definitive
Prospectuses and Statements of Additional Information or
supplements thereto, other than those necessitated by or related to
your (including your "Parents") activities where such amendments or
supplements result in expenses which we would not otherwise have
incurred;
(iii) expenses pertaining to the preparation, printing, and
distribution of any reports or communications, including
Prospectuses and Statements of Additional Information, which are
sent to our existing shareholders;
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(iv) filing and other fees to federal and state securities
regulatory authorities necessary to register and maintain
registration of the shares; and
(v) expenses of the Agent, including all costs and expenses
in connection with the issuance, transfer and registration of the
shares, including but not limited to any taxes and other
governmental charges in connection therewith.
(b) Except to the extent that you are entitled to reimbursement
under the provisions of any of the Distribution Plans for the Fund, you will pay
the following expenses:
(i) expenses of printing additional copies of the Prospectus
and Statement of Additional Information and any amendments or
supplements thereto which are necessary to continue to offer our
shares to the public;
(ii) expenses pertaining to the preparation (excluding legal
fees) and printing of all amendments and supplements to our
Registration Statement if the Amendment or supplement arises from
or is necessitated by or related to your (including your "Parent")
activities where those expenses would not otherwise have been
incurred by us; and
(iii) expenses pertaining to the printing of additional copies,
for use by you as sales literature, of reports or other
communications which have been prepared for distribution to our
existing shareholders or incurred by you in advertising, promoting
and selling our shares to the public.
12. Furnishing of Information. We will furnish to you such information
with respect to our company and its 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 or in jurisdictions in which you may wish to offer them. We will furnish
you at least annually with audited financial statements of our books and
accounts certified by independent public accountants, and with such additional
information regarding our financial condition, as you may reasonably request
from time to time.
13. Conduct of Business. Other than the currently effective Prospectus
and Statement of Additional Information, 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 material 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 Conduct Rules
of the National Association of Securities Dealers, Inc.
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14. Redemption or Repurchase within Seven Days. If shares are tendered
to us for redemption or are repurchased by us within seven (7) business days
after your acceptance of the original purchase order for such shares, you will
immediately refund to us the full amount of any sales commission (net of
allowances to dealers or brokers) allowed to you on the original sale, and will
promptly, upon receipt thereof, pay to us any refunds from dealers or brokers of
the balance of sales commissions reallowed by you. We shall notify you of such
tender for redemption within ten (10) days of the day on which notice of such
tender for redemption is received by us.
15. 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.
16. Term of Agreement. This Agreement shall become effective on the
date first written above or on such later date approved by the Trust's Board of
Trustees, including a majority of those Trustees who are not parties to this
Agreement or interested persons (as such term is defined in the 1940 Act)
thereof. Unless terminated as provided herein, the Agreement shall continue in
full force and effect with respect to each Fund until the Reapproval Date set
forth for such Fund on Schedule A to this Agreement. Thereafter, this Agreement
shall continue in effect from year to year for successive one (1) year periods
if approved at least annually (i) by a vote of a majority of the outstanding
voting securities of the Fund or by a vote of the Trustees of the Trust, and
(ii) by a vote of a majority of the Trustees of the Trust who are not interested
persons or parties to this Agreement (other than as Trustees of the Trust), cast
in person at a meeting called for the purpose of voting on this Agreement.
17. Termination. This Agreement: (i) may be terminated at any time
without the payment of any penalty, either by vote of the Trustees of the Trust
or by a vote of a majority of the outstanding voting securities of the Fund, on
sixty (60) days' written notice to you; (ii) shall terminate immediately in the
event of its assignment; and (iii) may be terminated by you on sixty (60) days'
written notice to us.
18. Suspension of Sales. We reserve the right at all times to suspend
or limit the public offering of the shares upon written notice to you, and to
reject any order in whole or in part.
19. Miscellaneous. This Agreement shall be subject to the laws of the
State of Arizona and shall be interpreted and construed to further and promote
the operation of the Trust 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," and "Majority of the Outstanding Voting Securities," shall have the
meanings set forth in the 1933 Act and the 1940 Act, as applicable, and the
rules and regulations promulgated thereunder.
20. Liability. Nothing contained herein shall be deemed to protect you
against any liability to us or to our shareholders to which you would otherwise
be subject by reason of
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willful misfeasance, bad faith or gross negligence in the performance of your
duties hereunder, or by reason of your reckless disregard of your obligations
and duties hereunder.
21. Amendment. This Agreement may be amended with respect to the Fund
by the parties only if such amendment is specifically approved by (a) the
Trustees or by the vote of a majority of the outstanding voting securities of
the Fund, and (b) by the vote of a majority of the disinterested Trustees cast
in person at a meeting called for the purpose of voting on such amendment.
If the foregoing meets with your approval, please acknowledge your
acceptance by signing each of the enclosed counterparts hereof and returning
such counterparts to us, whereupon this shall constitute a binding agreement as
of the date first above written.
Very truly yours,
ING FUNDS TRUST
-----------------------
By: Xxxxxxx X. Xxxxxx
Executive Vice President
Agreed to and Accepted:
ING FUNDS DISTRIBUTOR, INC.
------------------------
By: Xxxxx X. Xxxxxxxx
Senior Executive Vice President
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SCHEDULE A
WITH RESPECT TO THE
UNDERWRITING AGREEMENT
BETWEEN
ING FUNDS TRUST
AND
ING FUNDS DISTRIBUTOR, INC.
EFFECTIVE: SEPTEMBER 23, 2002
LAST CONTINUED/
NAME OF FUND APPROVED BY BOARD REAPPROVAL DATE
-------------- ------------------- ------------------
ING Classic Money Market Fund August 20, 2002 September 1, 2003
ING European Equity Fund August 20, 2002 September 1, 2003
ING GNMA Income Fund August 20, 2002 September 1, 2003
ING High Yield Bond Fund August 20, 2002 September 1, 2003
ING High Yield Opportunity Fund August 20, 2002 September 1, 2003
ING Intermediate Bond Fund August 20, 2002 September 1, 2003
ING Lexington Money Market Trust August 20, 2002 September 1, 2003
ING Money Market Fund August 20, 2002 September 1, 2003
ING Strategic Bond Fund August 20, 2002 September 1, 0000
-0-
XXXXXXXX X
WITH RESPECT TO THE
UNDERWRITING AGREEMENT
BETWEEN
ING FUNDS TRUST
AND
ING FUNDS DISTRIBUTOR, INC.
EFFECTIVE: SEPTEMBER 23, 2002
UNDERWRITING AGREEMENT ALLOCATION PROCEDURES
CDSCs and Distribution Fees related to Shares of each separate
series of ING Funds Trust, as described in the Underwriting Agreement (each a
"Fund," collectively the "Funds") shall be allocated by such Fund among ING
Funds Distributor, Inc. (the "Distributor") and any replacement principal
underwriter for Shares of such Fund (the "Successor Distributor") in accordance
with this Schedule B.
Defined terms used in this Schedule B and not otherwise
defined herein shall have the meaning assigned to them in the Underwriting
Agreement for Shares of each Fund to which this Schedule B is attached. As used
herein the following terms shall have the meanings indicated.
"Commission Share" means, in respect of any Fund, each Share
of such Fund which is issued under circumstances which would normally give rise
to an obligation of the holder of such Share to pay a CDSC upon redemption of
such Share (including, without limitation, any Share of such Fund issued in
connection with a Free Exchange) and any such Share shall continue to be a
Commission Share of such Fund prior to the redemption (including a redemption in
connection with a Free Exchange) or conversion of such Share, even though the
obligation to pay the CDSC may have expired or conditions for waivers thereof
may exist.
"Date of Original Issuance" means in respect of any Commission
Share, the date with reference to which the amount of the CDSC payable on
redemption thereof, if any, is computed.
"Free Exchange" means an exchange of a Commission Share of one
Fund for a Commission Share of another Fund under circumstances where the CDSC
which would have been payable in respect of a redemption of the exchanged
Commission Share on the date of such exchange is waived and the Commission Share
issued in such exchange is treated as a
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continuation of the investment in the Commission Share exchanged for purposes of
determining the CDSC payable if such Commission Share issued in the exchange is
thereafter redeemed.
"Free Share" means, in respect of any Fund, each Share of such
Fund, other than a Commission Share, including, without limitation, any Share
issued in connection with the reinvestment of dividends or capital gains.
"Inception Date" means, in respect of any Fund, the first date
on which such Fund issued Shares.
"Net Asset Value" means, (i) with respect to any Fund, as of
the date any determination thereof is made, the net asset value of such Fund
computed in the manner such value is required to be computed by such Fund in its
reports to its shareholders, and (ii) with respect to any Share of such Fund as
of any date, the quotient obtained by dividing: (A) the net asset value of such
Fund (as computed in accordance with clause (i) above) allocated to Shares of
such Fund (in accordance with the constituent documents for such Fund) as of
such date, by (B) the number of Shares of such Fund outstanding on such date.
"Omnibus Share" means, in respect of the Fund, a Commission
Share or Free Share sold by one of the Selling Agents listed on Exhibit I to
this Schedule. If the Distributor and its Transferees reasonably determine that
the Transfer Agent is able to track all Commission Shares and Free Shares sold
by any of the Selling Agents listed on Exhibit I (taking into account all
information provided to the Transfer Agent by such Selling Agent on a schedule
sufficient to enable the Transfer Agent to Complete all required reports
involving such information in a timely manner), in the same manner as Commission
Shares and Free Shares are currently tracked in respect of Selling Agents not
listed on Exhibit I, then Exhibit I shall be amended to delete such Selling
Agent from Exhibit I so that Commission Shares and Free Shares sold by such
Selling Agent will no longer be treated as Omnibus Shares.
"Share" means, in respect of any Fund, each Class B share of
such Fund.
PART I: ATTRIBUTION OF SHARES
Shares of each Fund, which are outstanding from time to time,
shall be attributed to the Distributor and any Successor Distributor in
accordance with the following rules;
(1) Commission Shares Other Than Omnibus Shares:
(a) Commission Shares (excluding Omnibus Shares) attributed to
the Distributor shall be Commission Shares (excluding Omnibus Shares) the Date
of Original Issuance of which occurred on or after the Inception Date of such
Fund and on or prior to the last day on which the Distributor acts as principal
underwriter of Shares for such Fund.
(b) Commission Shares (excluding Omnibus Shares) attributable
to the Successor Distributor shall be Commission Shares (excluding Omnibus
Shares) the Date of Original Issuance of which occurs on or after the first day
on which such Successor Distributor
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acts as principal underwriter of Shares for such Fund and on or prior to the
last day such Successor for Distributor acts as principal underwriter of Shares
for such Fund.
(c) A Commission Share (other than an Omnibus Share) of a
particular Fund (the "Issuing Fund") issued in consideration of the investment
of proceeds of the redemption of a Commission Share of another Fund (the
"Redeeming Fund") in connection with a Free Exchange, is deemed to have a Date
of Original Issuance identical to the Date of Original Issuance of the
Commission Share of the Redeeming Fund and any such Commission Share will be
attributed to the Distributor or Successor Distributor based upon such Date of
Original Issuance in accordance with Part I(a) and (b) above.
(d) A Commission Share (other than an Omnibus Share) redeemed
(other than in connection with a Free Exchange) or converted to a Class A share
is attributable to the Distributor or Successor Distributor based upon the Date
of Original Issuance in accordance with Part I(a), (b) and (c) above.
(2) Free Shares Other Than Omnibus Shares:
Free Shares (excluding Omnibus Shares) of a Fund outstanding
on any date shall be attributed to the Distributor or a Successor Distributor,
as the case may be, in the same proportion that the Commission Shares (excluding
Omnibus Shares) of such Fund outstanding on such date are attributed to it on
such date; provided that the Distributor reasonably determines that the Transfer
Agent or the Selling Agent is able to produce monthly reports which track the
Date of Original Issuance for the Commission Shares related to such Free Shares,
then the Free Shares shall be allocated pursuant to clause 1(a), (b) and (c)
above.
(3) Omnibus Shares:
Omnibus Shares of the Fund outstanding on any date shall be
attributed to the Distributor or a Successor Distributor, as the case may be, in
the same proportion that the Commission Shares which are not Omnibus Shares of
the Fund outstanding on such date are attributed to it on such date; provided
that if the Distributor and its transferees reasonably determine that the
Transfer Agent is able to produce monthly reports which track the Date of
Original Issuance for the Omnibus Shares, then the Omnibus Shares shall be
allocated pursuant to clause 1(a), (b) and (c) above.
PART II: ALLOCATION OF CDSCs
(1) CDSCs Related to the Redemption of Commission Shares Other
Than Omnibus Shares:
CDSCs in respect of the redemption of Commission Shares which
are not Omnibus Shares shall be allocated to the Distributor or Successor
Distributor depending upon whether the related redeemed Commission Share is
attributable to the Distributor or Successor Distributor, as the case may be, in
accordance with Part I above.
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(2) CDSCs Related to the Redemption of Omnibus Shares:
CDSCs in respect of the redemption of Omnibus Shares shall be
allocated to the Distributor or a Successor Distributor in the same proportion
that CDSCs related to the redemption of Commission Shares are allocated to each
thereof; provided, that the Distributor and its transferees reasonably determine
that the Transfer Agent is able to produce monthly reports which track the Date
of Original Issuance for the Omnibus Shares, then the CDSCs in respect of the
redemption of Omnibus Shares shall be allocated among the Distributor and any
Successor Distributors depending on whether the related redeemed Omnibus Share
is attributable to the Distributor or a Successor Distributor, as the case may
be, in accordance with Part I above.
PART III: ALLOCATION OF DISTRIBUTION FEES
Assuming that the Distribution Fee remains constant over time
and among Funds so that Part IV hereof does not become operative:
(1) The portion of the aggregate Distribution Fees accrued in
respect of all Shares of all Funds during any calendar month allocable to the
Distributor or a Successor Distributor is determined by multiplying the total of
such Distribution Fees by the following fraction:
(A + C) /2
----------
(B + D) /2
where:
A = The aggregate Net Asset Value of all Shares of all Funds
attributed to the Distributor or such Successor Distributor,
as the case may be, and outstanding at the beginning of such
calendar month
B = the aggregate Net Asset Value of all Shares of all Funds at
the beginning of such calendar month
C = The aggregate Net Asset Value of all Shares of all Funds
attributed to the Distributor or such Successor Distributor,
as the case may be, and outstanding at the end of such
calendar month
D = The aggregate Net Asset Value of all Shares of all Funds at
the end of such calendar month
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(2) If the Distributor reasonably determines that the Fund or
its transfer agent is able to produce automated monthly reports which allocate
the average Net Asset Value of the Commission Shares (or all Shares if
available) of all Funds among the Distributor and each Successor Distributor in
a manner consistent with the methodology detailed in Part I and Part III(1)
above, the portion of the Distribution Fees accrued in respect of all such
Shares of all Funds during a particular calendar month will be allocated to the
Distributor or each Successor Distributor by multiplying the total of such
Distribution Fees by the following fraction:
(A)/(B)
where:
A = Average Net Asset Value of all such Shares of all Funds for
such calendar month attributed to the Distributor or such
Successor Distributor, as the case may be
B = Total average Net Asset Value of all such Shares of all
Funds for such calendar month
PART IV: ADJUSTMENT OF THE DISTRIBUTOR'S SHARE AND SUCCESSOR DISTRIBUTORS'
SHARES
If the terms of any Underwriting Agreement, any Plan, any Prospectus,
the Conduct Rules or any other applicable law change the rate at which
Distribution Fees or Service Fees are computed with reference to the Net Asset
Value of Shares of any Fund, these allocation procedures must be revised in
light of such changes in a manner which carries out the intent of these
allocation procedures.
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EXHIBIT I
TO SCHEDULE B
SELLING AGENTS
Xxxxxxx Xxxxx
Xxxxxxx Xxxxxx & Co, Inc.
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