GE FUNDS
SHAREHOLDER SERVICING AND DISTRIBUTION AGREEMENT
GE Investment Distributors, Inc.
000 Xxxx Xxxxx Xxxx, Xxxxxxxx X
Xxxxxxxx, Xxxxxxxxxxx 00000
Dear Sirs:
GE Funds (the "Trust") confirms its agreement with GE Investment
Distributors, Inc. ("GEID"), a corporation organized under the laws of the State
of Delaware, implementing the terms of the Shareholder Servicing and
Distribution Plan (the "Plan"), adopted by the Trust with respect to GE
Short-Term Government Fund (the "Covered Fund") a series of the Trust, pursuant
to Rule 12b-1 (the "Rule") under the Investment Company Act of 1940, as amended
(the "1940 Act"). Under a multiple distribution system adopted by the Trust, the
Covered Fund has four classes (each a "Class" and together the "Classes") of
shares of beneficial interest ("Shares"), designated as Class A, Class B, Class
C and Class Y Shares. This Agreement is intended to describe the shareholder
servicing and distribution services to be provided by GEID, and/or the
distributor of the Covered Fund's Shares (the "Distributor"). Those services
will be provided as set out below, as follows:
SECTION 1. AMOUNT OF PAYMENTS.
(a) CLASS A SHARES. The Trust will pay GEID, with respect to the Covered
Fund, for shareholder services and distribution related services provided with
respect to the Class A Shares of the Covered Fund, an annual fee of .25% of the
value of the average daily net assets of the Covered Fund attributable to the
Class A Shares (a "Service and Distribution Fee").
(b) CLASS B SHARES. (i) The Trust will pay GEID, with respect to each Fund,
for shareholder services provided with respect to the Class B Shares of the
Covered Fund, an annual fee of .25% of the value of the average daily net assets
of the Covered Fund attributable to the Class B Shares (a "Service Fee").
(ii) The Trust will pay GEID, in addition to the Class B Service Fee, a fee
in connection with distribution related services provided with respect to the
Class B Shares of the Covered Fund (a "Distribution Fee") at the annual rate of
..60% of the value of the average daily net assets of the Covered Fund
attributable to the Class B Shares.
(c) CLASS C SHARES. (i) The Trust will pay GEID, with respect to each Fund,
for shareholder services provided with respect to the Class C Shares of the
Covered Fund, an annual fee of .25% of the value of the average daily net assets
of the Covered Fund attributable to the Class C Shares (a "Service Fee").
(ii) The Trust will pay GEID, in addition to the Class C Service Fee, a fee
in connection with distribution related services provided with respect to the
Class C Shares of the Covered Fund (a "Distribution Fee") at the annual rate of
..75% of the value of the average daily net assets of the Covered Fund
attributable to the Class C Shares.
(d) The fees to be paid with respect to the Covered Funds under this
Agreement will be calculated daily and paid monthly by the Trust with respect to
the foregoing Classes of the Covered Fund's Shares at the annual rates indicated
above.
SECTION 2. SERVICES PROVIDED UNDER THE AGREEMENT.
The fees payable with respect to each Class of the Covered Fund for
shareholder services are intended to compensate GEID, or enable GEID to
compensate other persons ("Service Providers") for providing shareholders of the
Covered Fund (which is interpreted to include shareholders of another registered
investment company which invests primarily in the Covered Fund) ("Shareholder
Services") and the fees for distribution related services are intended to
compensate GEID, or enable GEID to compensate Service Providers including any
Distributor of Shares of the Covered Fund, for providing services that are
primarily intended to result in, or that are primarily attributable to, the sale
of shares of the Covered Fund ("Selling Services"). "Shareholder Services" as
used in this Plan mean all forms of shareholder liaison services, including,
among other things, one or more of the following: providing shareholders of a
Covered Fund with (i) information on their investments; (ii) general information
regarding investing in mutual funds; (iii) periodic newsletters containing
materials relating to the Covered Fund or to investments in general in mutual
funds; (iv) periodic financial seminars designed to assist in the education of
shareholders with respect to mutual funds generally and the Covered Fund
specifically; (v) access to a telephone inquiry center relating to the Covered
Fund; and (vi) and other similar services not otherwise required to be provided
by the Trust's custodian or transfer agent. "Selling Services" include, but are
not limited to: the printing and distribution to prospective investors in the
Covered Fund of prospectuses and statements of additional information that are
used in connection with sales of Class A Shares, Class B Shares and Class C
Shares of the Covered Fund; the preparation, including printing, and
distribution of sales literature and media advertisements relating to the Class
A Shares, Class B Shares and Class C Shares of the Covered Fund; and
distributing shares of the Class A Shares, Class B Shares or Class C Shares of
the Covered Fund. In providing compensation for Selling Services in accordance
with the Plan, GEID is expressly authorized (i) to make, or cause to be made,
payments reflecting an allocation of overhead and other office expenses related
to the distribution of the Class A Shares, Class B Shares or Class C Shares of
the Covered Fund; (ii) to make, or cause to be made, payments, or to provide for
the reimbursement of expenses of, persons who provide support services in
connection with the distribution of the Class A Shares, Class B Shares or Class
C Shares of the Covered Fund; and (iii) to make, or cause to be made, payments
to broker-dealers who have sold Class A Shares, Class B Shares or Class C Shares
of the Covered Fund. Fees payable by Class A Shares may be used to pay for
either shareholder services or distribution related services.
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SECTION 3. APPROVAL BY TRUSTEES.
This Agreement will not take effect with respect to any Class of the
Covered Fund until approved by a majority vote of (a) the full Board of Trustees
of the Trust and (b) those Trustees who are not interested persons of the Trust
and who have no direct or indirect financial interest in the operation of the
Plan or in this Agreement (the "Independent Trustees"), cast in person at a
meeting called for the purpose of voting on this Agreement.
SECTION 4. CONTINUANCE OF AGREEMENT.
This Agreement will continue in effect with respect to the Covered Fund
from year to year so long as its continuance is specifically approved annually
by vote of the Trust's Board of Trustees in the manner described in Section 3
above.
SECTION 5. TERMINATION.
(a) This Agreement may be terminated with respect to any Class of the
Covered Fund at any time, without the payment of any penalty, by vote of a
majority of the Independent Trustees or by vote of a majority of the outstanding
voting securities of the Class on not more than 60 days' written notice to GEID.
This Agreement may remain in effect with respect to a particular Class of the
Covered Fund even if the Agreement has been terminated in accordance with this
Section 5 with respect to any other Class of the Covered Fund.
(b) This Agreement will terminate automatically in the event of its
assignment.
SECTION 6. SELECTION OF CERTAIN TRUSTEES.
While this Agreement is in effect with respect to any Class of the Covered
Fund, the selection and nomination of the Trust's Trustees who are not
interested persons of the Trust will be committed to the discretion of the
Trustees then in office who are not interested persons of the Trust.
SECTION 7. WRITTEN REPORTS.
GEID agrees that, in each year during which this Agreement remains in
effect with respect to the Covered Fund, GEID will prepare and furnish to the
Trust's Board of Trustees, and the Board will review, at least quarterly,
written reports, complying with the requirements of the Rule, that set out the
amounts expended under this Agreement and the purposes for which those
expenditures were made.
SECTION 8. PRESERVATION OF MATERIALS.
The Trust will preserve copies of this Agreement and any report made
pursuant to Section 7 above, for a period of not less than six years (the first
two years in an easily accessible place) from the date of this Agreement.
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SECTION 9. MEANING OF CERTAIN TERMS.
As used in this Agreement, the terms "interested person" and "majority of
the outstanding voting securities" will be deemed to have the same meaning that
those terms have under the 1940 Act and the rules and regulations under the 1940
Act, subject to any exemption that may be granted to the Trust under the 1940
Act by the Securities and Exchange Commission.
SECTION 10. FILING OF DECLARATION OF TRUST.
The Trust represents that a copy of its Declaration of Trust, dated as of
August 10, 1992, as amended from time to time (the "Declaration of Trust"), is
on file with the Secretary of The Commonwealth of Massachusetts and with the
Boston City Clerk.
SECTION 11. LIMITATION OF LIABILITY.
The obligations of the Trust under this Agreement will not be binding upon
any of the Trustees, shareholders, nominees, officers, employees or agents,
whether past, present or future, of the Trust, individually, but are binding
only upon the assets and property of the Trust, as provided in the Declaration
of Trust. The execution and delivery of this Agreement have been authorized by
the Trustees of the Trust, and signed by an authorized officer of the Trust,
acting as such, and neither the authorization by the Trustees nor the execution
and delivery by the officer will be deemed to have been made by any of them
individually or to impose any liability on any of them personally, but will bind
only the trust property of the Trust as provided in the Declaration of Trust.
The Covered Fund will not be liable for any claims against any other series of
the Trust.
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SECTION 12. EFFECTIVE DATE.
This Agreement has been executed by the Trust with respect to the Covered
Fund as of the close of business on September 17, 1999 and will become effective
with respect to a particular Class of the Covered Fund as of the date on which
interests in that Class are first offered to or held by the public.
* * * * *
If the terms and conditions described above are in accordance with your
understanding, kindly indicate your acceptance of this Agreement by signing and
returning to us the enclosed copy of this Agreement.
Very truly yours,
GE FUNDS
By: /S/ Xxxxxxx X. Xxxxxxxx
--------------------------
Name: Xxxxxxx X. Xxxxxxxx
Title: President
Accepted:
GE INVESTMENT DISTRIBUTORS, INC.
By: /S/ Xxxxxxx X. Xxxxxxx
--------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Secretary
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