DISTRIBUTION AGREEMENT
Between
VALUE LINE AGGRESSIVE INCOME TRUST
and
VALUE LINE SECURITIES, INC.
February 19, 1986
VALUE LINE SECURITIES, INC.
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Dear Sirs:
VALUE LINE AGGRESSIVE INCOME TRUST (the "Fund") established under the laws
of the Commonwealth of Massachusetts by Declaration of Trust dated November 12,
1985, is registered as an Investment Company under the Investment Company Act of
1940 and an indefinite number of shares of beneficial interest have been
registered under the Securities Act of 1933 to be offered continuously for sale
to the public in accordance with terms and conditions set forth in the
Prospectus included in such Registration Statement as it may be amended from
time to time.
In this connection, the Fund desires that your firm act as principal
underwriter and distributor (herein "distributor") of the Fund for the sale and
distribution of shares which have been registered as described above and any
additional shares which may become registered during the term of this Agreement.
You have advised the Fund that you are willing to act as distributor, and it is,
accordingly, agreed between us as follows:
1. The Fund hereby appoints you distributor for the sale of its shares,
pursuant to the aforesaid continuous public offering in connection with any
sales made to Fund investors in any states and/or jurisdictions in which you are
or shall from time to time become qualified as a broker/dealer, or through
securities dealers with whom you have entered into sales agreements.
2. You hereby accept such appointment and agree to use your best efforts to
sell such shares, provided, however, that when requested by the Fund at any time
because of market or other economic considerations or abnormal circumstances of
any kind, you will suspend such efforts. The Fund may also withdraw the offering
of the shares at any time when required by the provisions of any statute, order,
rule or regulation of any governmental body having jurisdiction. It is
understood that you do not undertake to sell all or any specific portion of the
shares of the Fund.
3. The shares shall be sold by you at net asset value as determined in the
Fund's Prospectus effective at the time of sale. Shares may be sold directly to
prospective purchasers or through securities dealers who have entered into sales
agreements with you. However, in no event will shares be issued prior to the
receipt by us of full payment for such shares.
4. You agree that the Fund shall have the right to accept or reject orders
for the purchase of shares of the Fund. Any consideration which you may receive
in connection with a rejected purchase order will be returned promptly. In the
event that any cancellation of a share purchase order, cancellation of a
redemption order or error in the timing of the acceptance of purchase or
redemption orders shall result in a gain or loss, you agree promptly to
reimburse the Fund for any amount by which losses shall exceed gains .so
arising; to retain any net gains so arising for application against losses so
arising in future periods and, on the termination of this Agreement, to pay over
to the Fund the amount of any such net gains which may have accumulated. The
Fund shall register or cause to be registered all shares sold by you pursuant to
the provisions hereof in such name or names and amounts as you may request from
time to time, and the Fund shall issue or cause to be issued certificates
evidencing such shares for delivery to you or pursuant to your direction if, and
to the extent that, the shareholder requests issuance of such share
certificates.
5. The Fund has delivered to you a copy of its initial Prospectus dated on
the effective date of its Registration Statement pursuant to the Securities Act
of 1933. It agrees that it will use its best efforts to continue the
effectiveness of the Registration Statement under the Securities Act of 1933.
The Fund further agrees to prepare and file any amendments to its Registration
Statement as may be necessary and any supplemental data in order to comply with
the Securities Act of 1933.
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6. The Fund is registered under the Investment Company Act of 1940 as an
investment company, and it will use its best efforts to maintain such
registration and to comply with the requirements of said Act.
7. You agree:
(a) That neither you nor any of your officers will take any short
position in the shares of the Fund.
(b) To furnish to the Fund any pertinent information required to be
included with respect to you as distributor within the meaning of the
Securities Act of 1933 in any reports or registration required to be filed
with any governmental authority.
(c) You will not give any information or make any representations
other than as contained in the Registration Statement or Prospectus filed
under the Securities Act of 1933, as in effect from time to time, or in any
supplemental sales literature authorized by the Fund for use in connection
with the sale of shares.
8. You shall pay all usual expenses of distribution, including advertising
and the costs of printing and mailing of the Prospectus, other than those
furnished to existing shareholders.
9. This Agreement will continue in effect for a period of two years and
shall continue in effect from year to year thereafter provided:
(a) Such continuation shall be specifically approved at least annually
by the Board of Trustees, including the vote of a majority of the Trustees
of the Fund who are not parties to this Agreement or "interested persons"
(as defined in the Investment Company Act of 1940) of any such persons cast
in person at a meeting called for the purpose of voting on such approval or
by vote of the holders of a majority of the outstanding voting securities
of the Fund and by such a vote of the Board of Trustees.
(b) You shall not have notified the Fund in writing at least sixty
days prior to the termination date that you shall not desire such
continuation.
(c) We shall not have notified you in writing at least sixty days
prior to the termination date that we do not desire your continuation.
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10. This Agreement may not be amended or changed except in writing and
shall be binding upon and shall enure to the benefits of the parties hereto and
their respective successors, but this Agreement shall not be assigned by either
party and shall automatically terminate upon assignment.
If the foregoing is in accordance with your undertaking, kindly so indicate
by signing in the space provided below.
VALUE LINE AGGRESSIVE INCOME TRUST
By /s/ [ILLEGIBLE]
-----------------------------------
Accepted:
VALUE LINE SECURITIES, INC.
By /s/ XXXXXX X. XXXXXX
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