EXHIBIT - e
DISTRIBUTION AGREEMENT
AGREEMENT made this 1st day of September, 2000, by and between
Lexington Natural Resources Trust (the "Trust") and Pilgrim Securities, Inc.
("Distributor"), a Delaware Corporation.
WHEREAS, the Trust is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as a diversified open-end investment company
and offers its shares continuously to variable annuity contracts or variable
life insurance policies (the "Accounts") issued by participating insurance
companies, and its shares may be sold in the future to separate accounts of
other affiliated or unaffiliated insurance companies; and
WHEREAS, the Distributor is registered as a broker-dealer under the
Securities Exchange Act of 1934 and is a member of the National Association of
Securities Dealers, Inc.; and
WHEREAS, the Trust and the Distributor wish to enter into this
Agreement whereby the Distributor will act as the Trust's principal underwriter
for the sale of shares of the Trust to the Accounts;
NOW, THEREFORE, the parties hereto agree as follows:
1. Appointment of the Distributor
The Trust hereby appoints the Distributor as the principal underwriter
and distributor of the Trust to sell shares of the Trust to the Accounts, and
the Distributor hereby accepts such appointment.
2. Purchase of Shares from the Trust
(a) The Trust herewith engages Distributor to act as exclusive
distributor of its shares. Said sales shall be made only to investors eligible
to invest in a registered investment company consistent with such company's
serving as an investment vehicle for variable annuities and variable life
insurance company contracts. The Distributor will hold itself available to
receive by mail, telex and/or telephone, orders for the purchase of shares and
will accept or reject such orders on behalf of the Trust in accordance with the
provisions of the Trust's prospectus, and will be available to transmit such
orders as are so accepted to the Trust's transfer agent as promptly as possible
for processing at the shares' net asset value next determined in accordance with
the prospectus.
(b) All shares sold by the Distributor under this Agreement shall
be sold at the net asset value per share ("Offering Price") determined in the
manner described in the Trust's prospectus, as it may be amended from time to
time.
3. Redemption of Shares by the Trust
(a) Any of the outstanding shares of the Trust may be tendered for
redemption at any time, and the Trust agrees to redeem any such shares so
tendered in accordance with the applicable provisions of the Prospectus and the
Trust's Declaration of Trust and By-Laws. The redemption price is the net asset
value per share next determined after the initial receipt of proper notice of
redemption.
(b) The right to redeem shares or to receive payment with respect
to any redemption may be suspended only in accordance with applicable law.
4. Duties of the Trust
(a) The Trust shall furnish to the Distributor copies of all
information, financial statements and other papers which the Distributor, may
reasonably request for use in connection with the distribution of the shares of
the Trust.
(b) The Trust shall take, from time to time, subject to the
necessary approval of its shareholders, all necessary action to fix the number
of its authorized shares and to register shares under the Securities Act of
1933, as amended (the "1933 Act"), in order that there will be available for
sale at least the number of shares as investors may reasonably be expected to
purchase.
5. Duties of the Distributor
In selling the shares of the Trust, the Distributor shall use its best
efforts to conform with the requirements of all applicable federal and state
laws and regulations, and the regulations of the National Association of
Securities Dealers, Inc., relating to the sale of such securities. Except as
provided below, the Distributor is not authorized by the Trust to give any
information or make any representations, other than those contained in the
registration statement for the Trust and its shares, the Prospectus, and any
sales literature specifically approved a principal of the Distributor. The
Distributor shall furnish applicable federal and state regulatory authorities
with any information or reports in connection with its services under this
Agreement which such authorities may request in order to ascertain whether the
Trust's operations are being conducted in an manner consistent with any
applicable law or regulations. Nothing contained in this Agreement shall prevent
the Distributor from entering into distribution agreements with other investment
companies. The Distributor shall be without liability to the Trust for any
action taken or omitted by it in good faith without negligence.
6. Allocation of Expenses
(a) The Trust will pay the following expenses in connection with
the sales and distribution of shares of the Trust:
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(i) expenses pertaining to the preparation of our audited
and certified financial statements to be included in any amendments
("Amendments") to the Trust's Registration Statement under the 1933 Act,
including the Prospectus and Statement of Additional Information included
therein;
(ii) expenses pertaining to the preparation, printing, and
distribution of any reports or communications, including Prospectus and
Statement of Additional Information, which are sent to existing shareholders of
the Trust;
(iii) filing and other fees to federal and state securities
regulatory authorities necessary to register and maintain registration of the
shares; and
(iv) expenses of the Trust's Administrator, 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) The Distributor 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 shares of the Trust
to the public; and
(ii) expenses pertaining to the printing of additional
copies, for use by the Distributor as sales literature, of reports or other
communications which have been prepared for distribution to existing
shareholders of the Trust or incurred by the Distributor in advertising,
promoting and selling our shares to the public.
7. Records
All records maintained by the Distributor in connection with this
Agreement shall be the property of the Trust and shall be returned to the Trust
upon termination of this Agreement, free from any claims or retention of rights
by the Distributor. The Distributor shall keep confidential any information
obtained pursuant to this Agreement and shall disclose such information, only if
the Trust has authorized such disclosure, or if such disclosure is expressly
required by applicable federal or state regulatory authorities.
8. Duration and Termination of this 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 for two
(2) years from the effective date of this Agreement, and shall continue in
effect from year to year thereafter 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 Trust or by a vote of the
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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.
This Agreement may be terminated at any time without penalty on at
least sixty days notice by the Trust's Board of Trustees or by a majority vote
of its shareholders, with respect to the Trust by a majority vote of the
shareholders of the capital stock of the Trust, or by the Distributor on sixty
days notice.
This Agreement shall terminate automatically in the event of its
assignment.
9. Miscellaneous
This Agreement shall be subject to the laws of the State of
Massachusetts 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," "Investment Company," "Open-End Investment Company,"
"Assignment," "Principal Underwriter," "Interested Person," 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.
10. Liability
Nothing contained herein shall be deemed to protect the Distributor
against any liability to the Trust or its shareholders to which the Distributor
would otherwise be subject by reason of willful misfeasance, bad faith or gross
negligence in the performance of the Distributor's duties hereunder, or by
reason of the Distributor's reckless disregard of its obligations and duties
hereunder.
LEXINGTON NATURAL RESOURCES TRUST
By: /s/ Xxxxxxx X. Xxxxxx
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Xxxxxxx X. Xxxxxx
Senior Vice President
PILGRIM SECURITIES, INC.
By: /s/ Xxxxx X. Xxxxxxxx
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Xxxxx X. Xxxxxxxx
Senior Executive Vice President
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SCHEDULE OF APPROVALS
WITH RESPECT TO THE
DISTRIBUTION AGREEMENT
(SEPTEMBER 1,2000)
BETWEEN
ING VP NATURAL RESOURCES TRUST
(FORMERLY LEXINGTON NATURAL RESOURCES TRUST)
AND
ING FUNDS DISTRIBUTOR, INC.
(FORMERLY PILGRIM SECURITIES, INC.)
LAST CONTINUED/
TRUST APPROVED BY BOARD REAPPROVAL DATE
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ING VP Natural Resource Trust July 11,2002 September 1,2003
