FORM OF DISTRIBUTION AGREEMENT
INVESTORS XXXX SERIES FUND, INC.
THIS AGREEMENT is made as of this ___ day of ____, 1997 between Investors Xxxx
Series Fund, Inc. (the "Company"), a Maryland corporation, and Xxxxx & Xxxxxx
Inc. (the "Distributor"), a ________________ corporation.
WHEREAS, the Company is registered as an investment company with the Securities
and Exchange Commission ("SEC") under the Investment Company Act of 1940, as
amended (the "1940 Act"), and is authorized to issue shares of common stock
("Shares") in separately designated series ("Funds"), each with its own
objectives, investment program, policies and restrictions; and
WHEREAS, the Company has registered the Shares of the Funds under the Securities
Act of 1933, as amended (the "1933 Act"), pursuant to a registration statement
on Form N-1A (the "Registration Statement"), including a prospectus
("Prospectus") and a statement of additional information ("Statement of
Additional Information"); and
WHEREAS, the Distributor is registered as a broker-dealer under the Securities
Exchange Act of 1934, as amended (the "1934 Act"); and
WHEREAS, the Company wishes to continue to engage the services of the
Distributor as principal underwriter and distributor of the Shares of the Funds
that now exist and that hereafter may be established, which are listed on
Schedule A to this Agreement as may be amended from time to time, and the
Distributor is willing to continue to serve in that capacity.
NOW, THEREFORE, in consideration of the promises and mutual covenants and
agreements hereinafter set forth, the parties hereto, intending to be legally
bound, hereby agree as follows:
1. APPOINTMENT OF DISTRIBUTOR.
(a) The Company hereby appoints the Distributor as principal underwriter
and distributor of the Funds of the Company to sell the Shares of the Funds in
jurisdictions wherein the Shares may be legally offered for sale. The
Distributor shall be the exclusive agent for the distribution of Shares of the
Funds; provided, however, that the Company in its absolute discretion may issue
Shares of the Funds otherwise than through the Distributor in connection with
(i) the payment or reinvestment of dividends or distributions, (ii) any merger
or consolidation of the Company or a Fund with any other investment company or
trust or any personal holding company, or the acquisition of the assets of any
such entity by the Company or any Fund, and (iii) any offer of exchange
authorized by the Board of Directors of the Company. Notwithstanding any other
provision hereof, the Company may terminate, suspend, or withdraw the offering
of the Shares of a Fund whenever, in its sole discretion, it deems such action
to be desirable.
(b) The Distributor agrees that it will use all reasonable efforts,
consistent with its other business, in connection with the distribution of
Shares of the Company; provided, however, that the Distributor shall not be
prevented from entering into like arrangements with other issuers. The
provisions of this paragraph do not obligate the Distributor to register as a
broker or dealer under the state Blue Sky laws of any jurisdiction when it
determines it would be uneconomical for it to do so or to maintain its
registration in any jurisdiction in which it is now registered nor obligate the
Distributor to sell any particular number of Shares. The Distributor is
currently registered as a broker-dealer or exempt from registration in all
jurisdictions listed in Schedule B hereto. The Distributor shall promptly notify
the Company in the event it fails to maintain its registration in any
jurisdiction in which it is currently registered. The Distributor shall sell
Shares of the Funds as agent for the Company at prices determined as hereinafter
provided and on the terms set forth herein, all according to applicable federal
and state Blue Sky laws and regulations and the Articles of Incorporation and
By-Laws of the Company. The Distributor may sell Shares of the Funds to or
through qualified brokers, dealers or others and shall require each such person
to conform to the provisions hereof, the Registration Statement, the then
current Prospectus and Statement of Additional Information, and applicable law.
Neither the Distributor nor any such person shall withhold the placing of
purchase orders for Shares so as to make a profit thereby.
(c) The Distributor shall order Shares of the Funds from the Company only
to the extent that it shall have received purchase orders therefor. The
Distributor will not make, or authorize any brokers, dealers, or others to make,
(i) any short sales of Shares or (ii) any sales of Shares to any Director or
officer of the Company, the Distributor, or any corporation or association
furnishing investment advisory, managerial, or supervisory services to the
Company, or to any such corporation or association, unless such sales are made
in accordance with the Company's then current Prospectus and Statement of
Additional Information.
(d) The Distributor is not authorized by the Company to give any
information or to make any representation other than those contained in the then
current Prospectus, Statement of Additional Information, and Fund shareholder
reports ("Shareholder Reports"), or in supplementary sales materials
specifically approved by the Company. The Distributor may prepare and distribute
sales literature and other material as it may deem appropriate, provided that
such literature and materials have been approved by the Company prior to their
use.
2. OFFERING PRICE OF SHARES.
All Shares of each Fund sold under this Agreement shall be sold at the public
offering price per Share in effect at the time of the sale as described in the
Company's then current Prospectus and Statement of Additional Information;
provided, however, that any public offering price for the Shares shall be the
net asset value per Share, as determined in the manner described in the
Company's then current Prospectus and/or Statement of Additional Information. At
no time shall the Company receive less than the full net asset value of the
Shares, determined in the manner set forth in the then current Prospectus and/or
Statement of Additional Information.
3. REGISTRATION OF SHARES.
The Company agrees that it will take all actions necessary to register Shares
under the Federal and state Blue Sky securities laws so that there will be
available for sale the number of Shares the Distributor may reasonably be
expected to sell and to pay all fees associated with said registration.
4. PAYMENT OF EXPENSES.
(a) Except as otherwise provided herein, the Distributor shall pay, or
arrange for others to pay, all of the following expenses: (i) payments to sales
representatives of the Distributor and at the discretion of the Distributor to
qualified brokers, dealers and others in respect of the sale of Shares of the
Funds; (ii) compensation and expenses of employees of the Distributor who engage
in or support distribution of Shares of the Funds or render shareholder support
services not otherwise provided by the Company's transfer and shareholder
servicing agent; and (iii) the cost of obtaining such information, analysis, and
reports with respect to marketing and promotional activities as the Company may
from time to time reasonably request.
(b) The Company shall pay, or arrange for others to pay, the following
expenses: (i) preparation, printing, and distribution to shareholders of
Prospectuses and Statements of Additional Information; (ii) preparation,
printing, and distribution of Shareholder Reports and other communications
required by law to shareholders; (iii) registration of the Shares of the Funds
under the federal securities laws; (iv) qualification of the Shares of the Funds
for sale in such states as the Distributor and the Company may approve; (v)
maintaining facilities for the issue and transfer of Shares; (vi) supplying
information, prices, and other data to be furnished by the Company under this
Agreement; and (vii) taxes applicable to the sale or delivery of the Shares of
the Funds or certificates therefor.
(c) In connection with the Distributor's distribution of sales materials,
Prospectuses, Statements of Additional Information, and Shareholder Reports to
potential investors in the Company, the Company shall make available to the
Distributor such number of copies of such materials as the Distributor may
reasonably request. The Company shall also furnish to the Distributor copies of
all information, financial statements and other documents the Distributor may
reasonably request for use in connection with the distribution of Shares of the
Company. The Company will enter into arrangements providing that persons other
than the Company will bear any and all expenses of preparing, printing and
providing to the Distributor, sales materials, Prospectuses, Statements of
Additional Information and Shareholder Reports for distribution to potential
investors in the Company.
5. COMPENSATION.
It is understood that the Distributor will not receive any commissions or other
compensation for acting as the Company's principal underwriter and distributor.
6. REPURCHASE OF SHARES.
The Distributor as agent and for the account of the Company may repurchase
Shares of the Funds offered for resale to it and redeem such Shares at their net
asset value determined as set forth in the then current Prospectus and Statement
of Additional Information.
7. INDEMNIFICATION OF DISTRIBUTOR.
The Company agrees to indemnify and hold harmless the Distributor and each of
its directors and officers and each person, if any, who controls the Distributor
within the meaning of Section 15 of the 1933 Act against any loss, liability,
claim, damages or expense (including the reasonable cost of investigating or
defending any alleged loss, liability, damages, claim, or expense, and any
reasonable counsel fees and disbursements incurred in connection therewith)
arising by reason of any person acquiring any Shares, based upon the ground that
the Registration Statement, Prospectuses, Statements of Additional Information,
Shareholder Reports or other information filed or made public by the Company (as
from time to time amended) included an untrue statement of a material fact or
omitted to state a material fact required to be stated or necessary in order to
make the statements made not misleading. However, the Company does not agree to
indemnify the Distributor or hold it harmless to the extent that the statements
or omission was made in reliance upon, and in conformity with, information
furnished to the Company by or on behalf of the Distributor.
In no case (i) is the indemnity of the Company to be deemed to protect the
Distributor against any liability to the Company or its shareholders to which
the Distributor or such person otherwise would be subject by reason of willful
misfeasance, bad faith or negligence in the performance of its duties or by
reason of its failure to exercise due care in rendering its services and duties
under this Agreement, or (ii) is the Company to be liable to the Distributor
under the indemnity agreement contained in this section with respect to any
claim made against the Distributor or any person indemnified unless the
Distributor or other person shall have notified the Company in writing of the
claim within a reasonable time after the summons or other first written
notification giving information of the nature of the claim shall have been
served upon the Distributor or such other person (or after the Distributor or
the person shall have received notice of service on any designated agent).
However, failure to notify the Company of any claim shall not relieve the
Company from any liability which it may have to the Distributor or any person
against whom such action is brought otherwise than on account of its indemnity
agreement contained in this section.
The Company shall be entitled to participate at its own expense in the
defense or, if it so elects, to assume the defense of any suit brought to
enforce any claims subject to this indemnity provision. If the Company elects to
assume the defense of any such claim, the defense shall be conducted by counsel
chosen by the Company and satisfactory to the indemnified defendants in the suit
whose approval shall not be unreasonably withheld. In the event that the Company
elects to assume the defense of any suit and retain counsel, the indemnified
defendants shall bear the fees and expenses of any additional counsel retained
by them. If the Company does not elect to assume the defense of a suit, it will
reimburse the indemnified defendants for the reasonable fees and expenses of any
counsel retained by the indemnified defendants.
The Company agrees to notify the Distributor promptly of the commencement
of any litigation or proceedings against it or any of its officers or Directors
in connection with the issuance or sale of any of its Shares.
8. INDEMNIFICATION OF COMPANY.
The Distributor covenants and agrees that it will indemnify and hold
harmless the Company and each of its directors and officers and each person, if
any, who controls the Company within the meaning of Section 15 of the 1933 Act,
against any loss, liability, damages, claim or expense (including the reasonable
cost of investigating or defending any alleged loss, liability, damages, claim
or expense, and reasonable counsel fees and disbursements incurred in connection
therewith) based upon the 1933 Act or any other statute or common law and
arising by reason of any person acquiring any Shares, and alleging (i) a
wrongful act or deed of the Distributor or any of its employees or sales
representatives, or (ii) that the Registration Statement, Prospectuses,
Statements of Additional Information, shareholder reports or other information
filed or made public by the Company (as from time to time amended) included an
untrue statement of a material fact or omitted to state a material fact required
to be stated or necessary in order to make the statements not misleading,
insofar as any such statements or omissions were made in reliance upon and in
conformity with information furnished to the Company by or on behalf of the
Distributor.
In no case (i) is the indemnity of the Distributor in favor of the Company
or any other person indemnified to be deemed to protect the Company or any other
person against any liability to which the Company or such other person would
otherwise be subject by reason of willful misfeasance or bad faith in the
performance of its duties or by reason of its failure to exercise due care in
rendering its services and duties under this Agreement, or (ii) is the
Distributor to be liable under its indemnity agreement contained in this section
with respect to any claim made against the Company or any person indemnified
unless the Company or person, as the case may be, shall have notified the
Distributor in writing of the claim within a reasonable time after the summons
or other first written notification giving information of the nature of the
claim shall have been served upon the Company or upon any person (or after the
Company or such person shall have received notice of service on any designated
agent). However, failure to notify the Distributor of any claim shall not
relieve the Distributor from any liability which it may have to the Company or
any person against whom the action is brought otherwise than on account on its
indemnity agreement contained in this section.
The Distributor shall be entitled to participate, at its own expense, in
the defense or, if it so elects, to assume the defense of any suit brought to
enforce the claim, but if the Distributor elects to assume the defense, the
defense shall be conducted by counsel chosen by the Distributor and satisfactory
to the indemnified defendants, whose approval shall not be unreasonably
withheld. In the event that the Distributor elects to assume the defense of any
suit and retain counsel, the defendants in the suit shall bear the fees and
expenses of any additional counsel retained by them. If the Distributor does not
elect to assume the defense of any suit, it will reimburse the indemnified
defendants in the suit for the reasonable fees and expenses of any counsel
retained by them.
The Distributor agrees to notify the Company promptly of the commencement
of any litigation or proceedings against it in connection with the issue and
sale of any of the Company's Shares.
9. TERM AND TERMINATION.
(a) This Agreement shall become effective as of the date hereof. Unless
sooner terminated as herein provided, this Agreement shall remain in full force
and effect for two (2) years from the effective date and thereafter for
successive periods of one year, but only so long as each such continuance is
specifically approved at least annually (i) either by vote of a majority of the
Board of Directors of the Company or by vote of a majority of the outstanding
voting securities of the company, and (ii) by vote of a majority of the
Directors of the Company who are not interested persons of the Company or in
this Agreement), cast in person at a meeting called for the purpose of voting on
such approval.
(b) This Agreement may be terminated at any time, without the payment of
any penalty, by the Board of Directors of the Company, by vote of a majority of
the outstanding voting securities of the Company, or by the Distributor, on not
less than ninety (90) days' written notice to the other party or upon such
shorter notice as may be mutually agreed upon.
(c) This Agreement shall automatically terminate in the event of its
assignment.
(d) The indemnification provisions contained in Sections 7 and 8 of this
Agreement shall remain in full force and effect regardless of any termination of
this Agreement.
10. AMENDMENT.
No provisions of this Agreement may be changed, waived, discharged, or
terminated orally, but only by an instrument in writing signed by the party
against which enforcement of the change, waiver, discharge, or termination is
sought. If the Company should at any time deem it necessary or advisable in the
best interests of the Company that any amendment of this Agreement be made in
order to comply with the recommendations or requirements of the SEC or other
governmental authority or to obtain any advantage under state or federal tax
laws and notifies Distributor of the form of such amendment, and the reasons
therefor, and if Distributor should decline to assent to such amendment, the
Company may terminate this Agreement forthwith. If Distributor should at any
time request that a change be made in the Company's Articles of Incorporation or
Bylaws or in its methods of doing business, in order to comply with any
requirements of Federal law or regulations of the SEC, or of a national
securities association of which Distributor is or may be a member relating to
the sale of Shares, and the Fund should not make such necessary change within a
reasonable time, Distributor may terminate this Agreement forthwith.
11. INDEPENDENT CONTRACTOR.
Distributor shall be an independent contractor and neither Distributor nor any
of its officers, directors, employees, or representatives is or shall be an
employee of the Company in the performance of Distributor's duties hereunder.
Distributor shall be responsible for its own conduct and the employment,
control, and conduct of its agents and employees and for injury to such agents
or employees or to others through its agents or employees. Distributor assumes
full responsibility for its agents and employees under applicable statutes and
agrees to pay all employee taxes thereunder.
12. DEFINITION OF CERTAIN TERMS.
For purposes of this Agreement the terms "assignment," "interested person,"
"majority of the outstanding voting securities," and "principal underwriter"
shall have their respective meanings defined in the 1940 Act and the rules and
regulations thereunder, subject, however, to such exemptions as may be granted
to either the Distributor or the Company by the SEC, or such interpretative
positions as may be taken by the SEC or its staff under the 1940 Act.
13. NOTICE.
Any notice under this Agreement shall be deemed to be sufficient if it is given
in writing, addressed and delivered, or mailed postpaid (a) if to the
Distributor, to Xxxxx & Xxxxxx, Inc. [ADDRESS]; and (b) if to the Company, to
Investors Xxxx Series Fund, Inc., 000 Xxxxxx Xxxxxxxxx, Xxxxxx Xxxx, Xxxxxxxx
00000, Attention: _________________.
14. CAPTIONS.
The captions in this Agreement are included for convenience of reference only
and in no other way define or delineate any of the provisions hereof or
otherwise affect construction or effect.
15. INTERPRETATION.
Nothing herein contained shall be deemed to require the Company or the
Distributor to take any action contrary to its Articles of Incorporation or
Bylaws, or any applicable statutory or regulatory requirement to which it is
subject or by which it is bound, or to relieve or deprive the Board of Directors
of its responsibility for and control of the conduct of the affairs of the
Company.
16. GOVERNING LAW.
This Agreement shall be construed in accordance with the laws of the
_____________ and the applicable provisions of the 1940 Act. To the extent that
the applicable laws of the __________________ or any of the provisions herein,
conflict with the applicable provisions of the 1940 Act, the latter shall
control.
17. MULTIPLE ORIGINALS.
This Agreement may be executed in two or more counterparts, each of which when
so executed shall be deemed to be an original, but such counterparts shall
together constitute but one and the same instrument.
IN WITNESS WHEREOF, the Company and Distributor have each duly executed
this Agreement, as of the day and year above written.
ATTEST: INVESTORS XXXX SERIES FUND, INC.
____________________________ By:____________________________
Title:______________________ Title:_________________________
ATTEST: XXXXX & XXXXXX, INC.
____________________________ By:_____________________________
Title:______________________ Title:__________________________
SCHEDULE A
INVESTORS XXXX SERIES FUND, INC.
Investors Xxxx Series Fund, Inc. consists of the following Portfolios:
Balanced Portfolio
Global Fixed Income Portfolio
Growth & Income Portfolio
Intermediate Fixed Income Portfolio
Large Cap Value Portfolio
Large Cap Growth Portfolio
Mid Cap Equity Portfolio
Money Market Portfolio
Small Cap Equity Portfolio
Date: _________, 1997
SCHEDULE B
[The Distributor is currently registered as a broker-dealer or exempt from
registration in all fifty states and Puerto Rico.]
