FORM OF
DISTRIBUTION AGREEMENT
[NAME OF TRUST]
AGREEMENT made this ____ day of ___________, [year], by and between
[NAME OF TRUST], a [DELAWARE/MASSACHUSETTS] business trust , having its
principal office and place of business at [ADDRESS] (the "Trust"), and
AmeriMutual Fund Distributors, Inc., a New York corporation having its principal
office and place of business at 000 Xxxxx Xxxxxxx, Xxxxx 000, Xxxxxxxxx, Xxx
Xxxx 00000 ("AmeriMutual").
WHEREAS, the Trust is an open-end management investment company
registered with the United States Securities and Exchange Commission under the
Investment Company Act of 1940, as amended (the "1940 Act"); and
WHEREAS, the Trust is authorized to issue shares of beneficial interest
("Shares") in separate series, with each such series representing interests in a
separate portfolio of securities and other assets, and is authorized to divide
those series into separate classes; and
WHEREAS, the Trust offers Shares in the series as listed in Appendix A
hereto (each such series, together with all other series subsequently
established by the Trust and made subject to this Agreement being herein
referred to as a "Fund," and collectively as the "Funds") and the Trust offers
shares of the classes of each Fund as listed in Appendix A hereto (each such
class together with all other classes subsequently established by the Trust and
made subject to this Agreement being herein referred to as a "Class," and
collectively as the "Classes"); and
WHEREAS, AmeriMutual is registered under the Securities Exchange Act of
1934, as amended ("1934 Act"), as a broker-dealer and is engaged in the business
of selling shares of registered investment companies either directly to
purchasers or through other financial intermediaries; and
WHEREAS, the Trust desires that AmeriMutual offer, as principal
underwriter, the Shares of each Fund and Class thereof to the public and
AmeriMutual is willing to provide those services on the terms and conditions set
forth in this Agreement in order to promote the growth of the Funds and
facilitate the distribution of the Shares;
NOW THEREFORE, for and in consideration of the mutual covenants and
agreements contained herein, the Trust and AmeriMutual hereby agree as follows.
1. APPOINTMENT OF AMERIMUTUAL AND DELIVERY OF DOCUMENTS
(a) The Trust hereby appoints AmeriMutual, and AmeriMutual hereby
agrees, to act as distributor of the Shares of the Funds and Classes for the
period and on the terms set forth in this Agreement. In connection therewith,
the Trust has delivered to AmeriMutual copies of
(i) the Trust's Declaration of Trust, Trust Instrument and Bylaws
("Organic Documents");
(ii) the Trust's current Registration Statement;
(iii) the Trust's notification of registration under the 1940 Act
on Form N-8A as filed with the SEC;
(iv) the Trust's current Prospectus and Statement of Additional
Information for each Fund (collectively, as currently in effect and as amended
or supplemented, the "Prospectus");
(v) each current plan of distribution or similar document adopted
by the Trust under Rule 12b-1 under the 1940 Act ("Plan") and each current
shareholder service plan or similar document adopted by the Trust ("Service
Plan").
(b) The Trust shall promptly furnish AmeriMutual with:
(i) all amendments of or supplements to the foregoing; and
(ii) a certified copy of the resolution of the Board appointing
AmeriMutual and authorizing the execution and delivery of this Agreement.
2. EXCLUSIVE NATURE OF DUTIES
(a) AmeriMutual shall be the exclusive representative of the Trust to
act as distributor of the Funds except that the rights given under this
Agreement to AmeriMutual shall not apply to: (i) Shares issued in connection
with the merger, consolidation or reorganization of any other investment company
or series or class thereof with a Fund or Class thereof; (ii) a Fund's
acquisition by purchase or otherwise of all or substantially all of the assets
or stock of any other investment company or series or class thereof; (iii) the
reinvestment in Shares by a Fund's shareholders of dividends or other
distributions; or (iv) any other offering by the Trust of securities to its
shareholders (collectively "exempt transactions").
(b) Notwithstanding the foregoing, AmeriMutual is and may in the future
distribute shares of other investment companies including investment companies
having investment objectives similar to those of the Funds. The Trust further
understands that existing and future investors in the Funds may invest in shares
of such other investment companies. The Trust agrees that the services that
AmeriMutual provides to such other investment companies shall not be deemed in
conflict with its duties to the Trust under this Agreement.
3. OFFERING OF SHARES
(a) AmeriMutual shall have the right to buy from the Trust the Shares
needed to fill unconditional orders for Shares of the Funds placed with
AmeriMutual by investors or selected dealers or selected agents (each as defined
in Section 11 hereof) acting as agent for their customers' or on their own
behalf. Alternatively, AmeriMutual may act as the Trust's agent, to offer, and
to solicit offers to subscribe to, Shares of the Funds.
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(b) The price that AmeriMutual shall pay for Shares purchased from the
Trust shall be the NAV of the respective Class or Classes used in determining
the Public Offering Price on which the orders are based. Shares purchased by
AmeriMutual are to be resold by AmeriMutual to investors at the respective
Public Offering Price(s), or to selected dealers or selected agents acting in
accordance with the terms of selected dealer or selected agent agreements
described in Section 11 of this Agreement. The Trust will advise AmeriMutual of
the NAV(s) each time that it is determined by the Trust, or its designated
agent, and at such other times as AmeriMutual may reasonably request.
(c) AmeriMutual will promptly forward all orders and subscriptions to
the Trust or it designated agent. All orders and all subscriptions shall be
directed to the Trust for acceptance and shall not be binding until accepted by
the Trust. Any order or subscription may be rejected by the Trust; provided,
however, that the Trust will not arbitrarily or without reasonable cause refuse
to accept or confirm orders or subscriptions for the purchase of Shares. The
Trust or its designated agent will confirm orders and subscriptions upon their
receipt, will make appropriate book entries and, upon receipt by the Trust or
its designated agent of payment therefor, will issue such Shares in certificated
or uncertificated form pursuant to the instructions of AmeriMutual. AmeriMutual
agrees to cause such payment and such instructions to be delivered promptly to
the Trust or its designated agent.
(d) The Trust reserves the right to sell Shares directly to investors
through subscriptions received by the Trust, but no such direct sales shall
affect the sales charges due to AmeriMutual hereunder.
(e) The Trust reserves the right to suspend the offering of Shares of a
Fund or of any Class thereof at any time in the absolute discretion of the
Board, and upon notice of such suspension AmeriMutual shall cease to offer
Shares of the Funds or Classes thereof specified in the notice.
(f) No Shares shall be offered by either AmeriMutual or the Trust under
any of the provisions of this Agreement and no orders for the purchase or sale
of Shares hereunder shall be accepted by the Trust if and so long as the
effectiveness of the Registration Statement then in effect or any necessary
amendments thereto shall be suspended under any of the provisions of the
Securities Act, or if and so long as a current prospectus, as required by
Section 10(b) of the Securities Act, as amended, is not on file with the SEC;
provided, however, that nothing contained in this paragraph shall in any way
limit the Trust's obligation to repurchase Shares from any shareholder in
accordance with the provisions of the Trust's Organic Documents or the
prospectus applicable to the Shares.
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4. REPURCHASE OR REDEMPTION OF SHARES BY THE TRUST
(a) Any of the outstanding Shares of a Fund or Class thereof may be
tendered for redemption at any time, and the Trust agrees to redeem or
repurchase the Shares so tendered in accordance with its obligations as set
forth in the Organic Documents and the Prospectus relating to the Shares.
(b) The Trust or its designated agent shall pay:
(i) the total amount of the redemption price consisting of the
NAV less any applicable deferred sales charge to the redeeming shareholder or
its agent, and
(ii) except as may be otherwise required by the NASD Rules, any
applicable deferred sales charges to AmeriMutual in accordance with
AmeriMutual's instructions on or before the fifth business day (or such other
earlier business day as is customary in the investment company industry)
subsequent to the Trust's or its agent's having received the notice of
redemption in proper form.
(c) Redemption of Shares or payment therefor may be suspended at times
when the New York Stock Exchange is closed for any reason other than its
customary weekend or holiday closings, when trading thereon is restricted, when
an emergency exists as a result of which disposal by the Trust of securities
owned by a Fund is not reasonably practicable or it is not reasonably
practicable for the Trust fairly to determine the value of a Fund's net assets,
or during any other period when the SEC so requires or permits.
5. DUTIES AND REPRESENTATIONS OF AMERIMUTUAL
(a) AmeriMutual shall use reasonable efforts to sell Shares of the
Funds upon the terms and conditions contained herein and in the then current
Prospectus. AmeriMutual shall devote reasonable time and effort to effect sales
of Shares but shall not be obligated to sell any specific number of Shares. The
services of AmeriMutual to the Trust hereunder are not to be deemed exclusive,
and nothing herein contained shall prevent AmeriMutual from entering into like
arrangements with other investment companies so long as the performance of its
obligations hereunder is not impaired thereby.
(b) AmeriMutual will execute and deliver agreements with
broker/dealers, financial institutions and other industry professionals based on
the forms attached hereto or based on the additional forms of agreement approved
from time to time by the Board with respect to the various classes of shares of
the Funds, including but not limited to forms of sales support agreements and
shareholder servicing agreements approved in connection with a distribution
and/or servicing plan approved in accordance with Rule 12b-1 under the 1940 Act.
(c) AmeriMutual will use appropriate efforts to solicit orders for the
sale of Shares and shall undertake such activities as it believes reasonable and
appropriate and which are primarily intended to result in the sale of Shares,
including, but not limited to, advertising, compensation of underwriters,
dealers and sales personnel, the printing and mailing of prospectuses to other
than current shareholders, and the printing and mailing of sales literature.
AmeriMutual shall be responsible for reviewing and providing advice and counsel
on all sales literature (e.g., advertisements, brochures and shareholder
communications) with respect to each of the Funds. In addition, AmeriMutual will
provide one or more persons, during normal business hours, to respond to
telephone questions with respect to the Funds.
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(d) All activities by AmeriMutual and its agents and employees as
distributor of Shares shall comply with all applicable laws, rules and
regulations, including, without limitation, the 1940 Act, the Securities Act,
the Securities Exchange Act, and the NASD Rules, all rules and regulations made
or adopted pursuant to the 1940 Act by the SEC or any securities association
registered under the Securities Exchange Act.
(e) In selling Shares of the Funds, AmeriMutual shall use its best
efforts in all material respects duly to conform with the requirements of all
federal and state laws relating to the sale of the Shares. None of AmeriMutual,
any selected dealer, any selected agent or any other person is authorized by the
Trust to give any information or to make any representations other than as is
contained in a Fund's Prospectus or any advertising materials or sales
literature specifically approved in writing by the Trust or its agents.
(f) AmeriMutual shall adopt and follow procedures for the confirmation
of sales to investors and selected dealers or selected agents, the collection of
amounts payable by investors and selected dealers or selected agents on such
sales, and the cancellation of unsettled transactions, as may be necessary to
comply with the requirements of the NASD.
(g) AmeriMutual represents and warrants to the Trust that:
(i) It is a business trust duly organized and existing and in good
standing under the laws of the State of Delaware and it is duly qualified to
carry on its business in the State of Nebraska;
(ii) It is empowered under applicable laws and by its Articles of
Incorporation to enter into and perform this Agreement;
(iii) All requisite corporate proceedings have been taken to authorize
it to enter into and perform this Agreement;
(iv) It has and will continue to have access to the necessary
facilities, equipment and personnel to perform its duties and obligations under
this Agreement;
(v) This Agreement, when executed and delivered, will constitute a
legal, valid and binding obligation of the Distributor, enforceable against the
Distributor in accordance with its terms, subject to bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting the
rights and remedies of creditors and secured parties;
(vi) It is registered under the Securities Exchange Act with the SEC as
a broker-dealer, it is a member in good standing of the NASD, it will abide by
the NASD Rules, and it will notify the Trust if its membership in the NASD is
terminated or suspended; and
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(vii) The performance by the Distributor of its obligations hereunder
does not and will not contravene any provision of its Articles of Incorporation.
(h) Notwithstanding anything in this Agreement, including the
Appendices, to the contrary, AmeriMutual makes no warranty or representation as
to the number of selected dealers or selected agents with which it has entered
into agreements in accordance with Section 11 hereof, as to the availability of
any Shares to be sold through any selected dealer, selected agent or other
intermediary or as to any other matter not specifically set forth herein.
6. DUTIES AND REPRESENTATIONS OF THE TRUST
(a) The Trust shall furnish to AmeriMutual copies of all financial
statements and other documents to be delivered to shareholders or investors at
least two Fund Business Days prior to such delivery and shall furnish
AmeriMutual copies of all other financial statements, documents and other papers
or information which AmeriMutual may reasonably request for use in connection
with the distribution of Shares. The Trust shall make available to AmeriMutual
the number of copies of the Funds' Prospectuses as AmeriMutual shall reasonably
request.
(b) The Trust shall take, from time to time, subject to the approval of
the Board and any required approval of the shareholders of the Trust, all
actions necessary to fix the number of authorized Shares (if such number is not
unlimited) and to register the Shares under the Securities Act, to the end that
there will be available for sale the number of Shares as reasonably may be
expected to be sold pursuant to this Agreement.
(c) The Trust will execute any and all documents, furnish any and all
information and otherwise take all actions that may be reasonably necessary to
register or qualify Shares for sale in such states as AmeriMutual may designate
to the Trust and the Trust may approve, and the Trust shall pay all fees and
other expenses incurred in connection with such registration or qualification;
provided that AmeriMutual shall not be required to register as a broker-dealer
or file a consent to service of process in any State and neither the Trust nor
any Fund or Class thereof shall be required to qualify as a foreign corporation,
trust or association in any State. Any registration or qualification may be
withheld, terminated or withdrawn by the Trust at any time in its discretion.
AmeriMutual shall furnish such information and other material relating to its
affairs and activities as the Trust requires in connection with such
registration or qualification.
(d) The Trust represents and warrants to AmeriMutual that:
(i) It is a business trust duly organized and existing and in
good standing under the laws of the State of ---------------------;
(ii) It is empowered under applicable laws and by its Organic
Documents to enter into and perform this Agreement;
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(iii) All proceedings required by the Organic Documents have been
taken to authorize it to enter into and perform its duties under this Agreement;
(iv) It is an open-end management investment company registered
with the SEC under the 1940 Act;
(v) All Shares, when issued, shall be validly issued, fully paid
and non-assessable;
(vi) This Agreement, when executed and delivered, will constitute
a legal, valid and binding obligation of the Trust, enforceable against the
Trust in accordance with its terms, subject to bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting the
rights and remedies of creditors and secured parties;
(vii) The performance by the Distributor of its obligations
hereunder does not and will not contravene any provision of its Articles of
Incorporation.
(viii) The Registration statement is currently effective and will
remain effective with respect to all Shares of the Funds and Classes thereof
being offered for sale;
(ix) The Registration Statement and Prospectuses have been or
will be, as the case may be, carefully prepared in conformity with the
requirements of the Securities Act and the rules and regulations thereunder;
(x) The Registration Statement and Prospectuses contain or will
contain all statements required to be stated therein in accordance with the
Securities Act and the rules and regulations thereunder; all statements of fact
contained or to be contained in the Registration Statement or Prospectuses are
or will be true and correct at the time indicated or on the effective date as
the case may be; and neither the Registration Statement nor any Prospectus, when
they shall become effective or be authorized for use, will include an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading to a
purchaser of Shares;
(xi) It will from time to time file such amendment or amendments
to the Registration Statement and Prospectuses as, in the light of then-current
and then-prospective developments, shall, in the opinion of its counsel, be
necessary in order to have the Registration Statement and Prospectuses at all
times contain all material facts required to be stated therein or necessary to
make any statements therein not misleading to a purchaser of Shares ("Required
Amendments");
(xii) It shall not file any amendment to the Registration
Statement or Prospectuses without giving AmeriMutual reasonable advance notice
thereof; provided, however, that nothing contained in this Agreement shall in
any way limit the Trust's right to file at any time such amendments to the
Registration Statement or Prospectuses, of whatever character, as the Trust may
deem advisable, such right being in all respects absolute and unconditional; and
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(xiii) Any amendment to the Registration Statement or
Prospectuses hereafter filed will, when it becomes effective, contain all
statements required to be stated therein in accordance with the 1940 Act and the
rules and regulations thereunder; all statements of fact contained in the
Registration Statement or Prospectuses will, when it becomes effective, be true
and correct at the time indicated or on the effective date as the case may be;
and no such amendment, when it becomes effective, will include an untrue
statement of a material fact or will omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading to
a purchaser of the Shares.
7. INDEMNIFICATION OF AMERIMUTUAL BY THE TRUST
(a) The Trust authorizes AmeriMutual and any dealers with whom
AmeriMutual has entered into dealer agreements to use any Prospectus in the form
furnished by the Trust in connection with the sale of Shares. The Trust agrees
to indemnify, defend and hold AmeriMutual, its several officers and directors,
and any person who controls AmeriMutual within the meaning of Section 15 of the
Securities Act free and harmless from and against any and all claims, demands,
liabilities and expenses (including the reasonable cost of investigating or
defending such claims, demands or liabilities and any reasonable counsel fees
incurred in connection therewith) which AmeriMutual, its officers and directors,
or any such controlling persons, may incur under the Securities Act, the 1940
Act, or common law or otherwise, arising out of or based upon
(i) any untrue statement, or alleged untrue statement, of a
material fact required to be stated in either any Registration Statement or any
Prospectus,
(ii) any omission, or alleged omission, to state a material fact
required to be stated in any Registration Statement or any Prospectus or
necessary to make the statements in any of them not misleading,
(b) The Trust's agreement to indemnify AmeriMutual, its officers or
directors, and any such controlling person will not be deemed to cover any such
claim, demand, liability or expense to the extent that it arises out of or is
based upon
(i) any such untrue statement, alleged untrue statement, omission
or alleged omission made in any Registration Statement or any Prospectus in
reliance upon information furnished by AmeriMutual, its officers, directors or
any such controlling person to the Trust or its representatives for use in the
preparation thereof, or
(ii) willful misfeasance, bad faith or gross negligence in the
performance of AmeriMutual's duties, or by reason of AmeriMutual's reckless
disregard of its obligations and duties under this Agreement ("Disqualifying
Conduct").
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(c) The Trust's agreement to indemnify AmeriMutual, its officers and
directors, and any such controlling person, as aforesaid, is expressly
conditioned upon the Trust's being notified of any action brought against
AmeriMutual, its officers or directors, or any such controlling person, such
notification to be given by letter, by facsimile or by telegram addressed to the
Trust at its address set forth above within a reasonable period of time after
the summons or other first legal process shall have been served; provided,
however, that the failure to notify the Trust of any such action shall not
relieve the Trust from any liability which the Trust may have to the person
against whom such action is brought by reason of any such untrue, or alleged
untrue, statement or omission, or alleged omission, otherwise than on account of
the Trust's indemnity agreement contained in this Section.
(d) The Trust will be entitled to assume the defense of any suit
brought to enforce any such claim, demand or liability, but, in such case, such
defense shall be conducted by counsel of good standing chosen by the Trust and
approved by AmeriMutual, which approval shall not be unreasonably withheld. If
the Trust elects to assume the defense of any such suit and retain counsel of
good standing approved by AmeriMutual, the defendant or defendants in such suit
shall bear the fees and expenses of any additional counsel retained by any of
them; but in case the Trust does not elect to assume the defense of any such
suit, the Trust will reimburse AmeriMutual, its officers and directors, or the
controlling person or persons named as defendant or defendants in such suit, for
the reasonable fees and expenses of any counsel retained by them.
(e) The Trust's indemnification agreement contained in this Section and
the Trust's representations and warranties in this Agreement shall remain
operative and in full force and effect regardless of any investigation made by
or on behalf of AmeriMutual, its officers and directors, or any controlling
person, and shall survive the delivery of any Shares. This agreement of
indemnity will inure exclusively to AmeriMutual's benefit, to the benefit of its
several officers and directors, and their respective estates, and to the benefit
of any controlling persons and their successors. The Trust agrees promptly to
notify AmeriMutual of the commencement of any litigation or proceedings against
the Trust or any of its officers or Board members in connection with the issue
and sale of Shares.
8. INDEMNIFICATION OF THE TRUST BY AMERIMUTUAL
(a) AmeriMutual agrees to indemnify, defend and hold the Trust, its
several officers and Board members, and any person who controls the Trust within
the meaning of Section 15 of the Securities Act, free and harmless from and
against any and all claims, demands, liabilities and expenses (including the
reasonable cost of investigating or defending such claims, demands or
liabilities and any reasonable counsel fees incurred in connection therewith)
which the Trust, its officers or Board members, or any such controlling person,
may incur under the Securities Act, the 1940 Act, or under common law or
otherwise, but only to the extent that such liability or expense incurred by the
Trust, its officers or Board members, or such controlling person resulting from
such claims or demands
(i) shall arise out of or be based upon any unauthorized sales
literature, advertisements, information, statements or representations or any
Disqualifying Conduct in connection with the offering and sale of any Shares, or
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(ii) shall arise out of or be based upon any untrue, or alleged
untrue, statement of a material fact contained in information furnished in
writing by AmeriMutual to the Trust specifically for use in the Trust's
Registration Statement and used in the answers to any of the items of the
Registration Statement or in the corresponding statements made in the
Prospectus, or shall arise out of or be based upon any omission, or alleged
omission, to state a material fact in connection with such information furnished
in writing by AmeriMutual to the Trust and required to be stated in such answers
or necessary to make such information not misleading.
(b) AmeriMutual's agreement to indemnify the Trust, its officers and
Trustees, and any such controlling person, as aforesaid, is expressly
conditioned upon AmeriMutual's being notified of any action brought against the
Trust, its officers or Trustees, or any such controlling person, such
notification to be given by letter, by facsimile or by telegram addressed to
AmeriMutual at its address set forth above within a reasonable period of time
after the summons or other first legal process shall have been served.
(c) The failure so to notify AmeriMutual of any such action shall not
relieve AmeriMutual from any liability which its may have to the person against
whom such action is brought by reason of any such untrue, or alleged untrue,
statement or omission, or alleged omission, otherwise than on account of
AmeriMutual's indemnity agreement contained in this Section.
(d) AmeriMutual will be entitled to assume the defense of any suit
brought to enforce any such claim, demand or liability, but, in such case, such
defense shall be conducted by counsel of good standing chosen by AmeriMutual and
approved by the Trust, which approval shall not be unreasonably withheld. If
AmeriMutual elects to assume the defense of any such suit and retain counsel of
good standing approved by the Trust, the defendant or defendants in such suit
shall bear the fees and expenses of any additional counsel retained by any of
them; but in the case AmeriMutual does not elect to assume the defense of any
such suit, AmeriMutual will reimburse the Trust, the Trust's officers and
directors, or the controlling person or persons named as defendant or defendants
in such suit, for the reasonable fees and expenses of any counsel retained by
the Trust or them.
(e) AmeriMutual's indemnification agreement contained in this Section and
AmeriMutual's representations and warranties in this Agreement shall remain
operative and in full force and effect regardless of any investigation made by
AmeriMutual or on behalf of AmeriMutual, its officers and directors, or any
controlling person, and shall survive the delivery of any Shares. This agreement
of indemnity will inure exclusively to the Trust's benefit, to the benefit of
the Trust's officers and trustees, and their respective estates, and to the
benefit of any controlling persons and their successors. AmeriMutual agrees
promptly to notify the Trust of the commencement of any litigation or
proceedings against AmeriMutual or any of its officers or trustees in connection
with the issue and sale of Shares.
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9. NOTIFICATION BY THE TRUST
(a) The Trust agrees to advise AmeriMutual as soon as reasonably
practical:
(i) of any request by the SEC for amendments to the Registration
Statement or any Prospectus then in effect;
(ii) of the issuance by the SEC of any stop order suspending the
effectiveness of the Registration Statement or any Prospectus then in effect or
of the initiation of any proceeding for that purpose;
(iii) of the happening of any event that makes untrue any
statement of a material fact made in the Registration Statement or any
Prospectus then in effect or which requires the making of a change in such
Registration Statement or Prospectus in order to make the statements therein not
misleading;
(iv) of all actions of the SEC with respect to any amendment to
any Registration Statement or xxx Prospectus which may from time to time be
filed with the SEC; and
(v) if a current Prospectus is not on file with the SEC.
For purposes of this section, informal requests by or acts of the Staff
of the SEC shall not be deemed actions of or requests by the SEC.
10. COMPENSATION AND EXPENSES
(a) In consideration of the Distributor's services in connection with
the distribution of Shares of each Fund and Class thereof, AmeriMutual shall
receive:
(i) any applicable sales charge assessed upon investors in
connection with the purchase of Shares;
(ii) from the Trust, any applicable contingent deferred sales
charge ("CDSC") assessed upon investors in connection with the redemption of
Shares;
(iii) from the Trust, the distribution service fees with respect
to the Shares of those Classes as designated in Appendix A for which a Plan is
effective (the "Distribution Fee"); and
(iv) from the Trust, the shareholder service fees with respect to the
Shares of those Classes as designated in Appendix A for which a Service Plan is
effective (the "Shareholder Service Fee").
(b) The Distribution Fee and Shareholder Service Fee shall be
accrued daily by each applicable Fund or Class thereof and shall be paid monthly
as promptly as possible after the last day of each calendar month but in any
event on or before the fifth (5th) Fund Business Day after month-end, at the
rate or in the amounts set forth in the Plan(s). The Trust grants and transfers
to AmeriMutual a general lien and security interest in any and all securities
and other assets of a Fund now or hereafter maintained in an account at the
Fund's custodian on behalf of the Fund to secure any Distribution Fees and
Shareholder Service Fees owed AmeriMutual by the Trust under this Agreement.
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(c) The Trust shall cause its transfer agent (the "Transfer
Agent") to withhold, from redemption proceeds payable to holders of Shares of
the Funds and the Classes thereof, all CDSCs properly payable by the
shareholders in accordance with the terms of the applicable Prospectus and shall
cause the Transfer Agent to pay such amounts over to AmeriMutual as promptly as
possible after the settlement date for each redemption of Shares.
(d) The Trust shall be responsible and assumes the obligation for
payment of all the expenses of the Funds, including fees and disbursements of
its counsel and auditors, in connection with the preparation and filing of the
Registration Statement and Prospectuses (including but not limited to the
expense of setting in type the Registration Statement and Prospectuses and
printing sufficient quantities for internal compliance, regulatory purposes and
for distribution to current shareholders).
(e) The Trust shall bear the cost and expenses (i) of the
registration of the Shares for sale under the Securities Act; (ii) of the
registration or qualification of the Shares for sale under the securities laws
of the various States; (iii) if necessary or advisable in connection therewith,
of qualifying the Trust, the Funds or the Classes thereof (but not AmeriMutual)
as an issuer or as a broker or dealer, in such States as shall be selected by
the Trust and AmeriMutual pursuant to Section 6(c) hereof; and (iv) payable to
each State for continuing registration or qualification therein until the Trust
decides to discontinue registration or qualification pursuant to Section 6(c)
hereof. AmeriMutual shall pay all expenses relating to AmeriMutual's
broker-dealer qualification.
11. SELECTED DEALER AND SELECTED AGENT AGREEMENTS
The Distributor shall have the right to enter into selected dealer agreements
with securities dealers of its choice ("selected dealers") and selected agent
agreements with depository institutions and other financial intermediaries of
its choice ("selected agents") for the sale of Shares and to fix therein the
portion of the sales charge, if any, that may be allocated to the selected
dealers or selected agents; provided, that the Trust shall approve the forms of
agreements with selected dealers or selected agents and shall review the
compensation set forth therein. Selected dealers and selected agents shall
resell Shares of each Fund or Class thereof at the public offering price(s) set
forth in the Prospectus relating to the Shares. Within the United States,
AmeriMutual shall offer and sell Shares of the Funds only to selected dealers
that are members in good standing of the NASD.
12. CONFIDENTIALITY
The Distributor agrees to treat all records and other information related to the
Trust as proprietary information of the Trust and, on behalf of itself and its
employees, to keep confidential all such information, except that AmeriMutual
may:
(a) prepare or assist in the preparation of periodic reports to
shareholders and regulatory bodies such as the SEC;
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(b) provide information typically supplied in the investment company
industry to companies that track or report price, performance or other
information regarding investment companies; and
(c) release such other information as approved in writing by the Trust,
which approval shall not be unreasonably withheld;
provided, however, that AmeriMutual may release any information regarding the
Trust without the consent of the Trust if AmeriMutual reasonably believes that
it may be exposed to civil or criminal legal proceedings for failure to comply,
when requested to release any information by duly constituted authorities or
when so requested by the Trust.
13. EFFECTIVENESS AND DURATION
(a) This Agreement shall become effective as of the date hereof and
will continue for an initial two-year term and will continue thereafter so long
as such continuance is specifically approved at least annually (i) by the
Trust's Board or (ii) by a vote of a majority of the Shares of the Trust or the
relevant Fund, as the case may be, provided that in either event its continuance
also is approved by a majority of the Board members who are not "interested
persons" of any party to this Agreement, by vote cast in person at a meeting
called for the purpose of voting on such approval.
(b) This agreement is terminable, without penalty, on not less than
sixty days' notice, by the Board, by vote of a majority of the outstanding
voting securities of such Trust, or by AmeriMutual.
(c) This Agreement will automatically and immediately terminate in the
event of its "assignment."
(d) AmeriMutual agrees to notify the Trust immediately upon the event
of AmeriMutual's expulsion or suspension by the NASD. This Agreement will
automatically and immediately terminate in the event of AmeriMutual's expulsion
or suspension by the XXXX.
00
00. DEFINITIONS
As used in this Agreement, the following terms shall have the meaning set forth
below:
(a) The "Board" means the Board of Trustees of the Trust.
(b) "Fund Business Day" means any day on which the NAV of Shares of the
applicable Fund is determined as stated in the then current prospectus.
(c) "NASD Rules" means the Constitution, By-Laws, and Rules of Fair
Practice of the National Association of Securities Dealers, Inc. (the "NASD")
and any interpretations thereof. (a) "NAV" means the net asset value per Share
of each Class of each Fund as determined by the Trust, or its designated agent,
in accordance with and at the times indicated in the applicable Prospectus of
the Trust on each Fund Business Day in accordance with the method set forth in
the Prospectus and guidelines established by the Board.
(d) "Public Offering Price" means the price per Share of each Class of
each Fund at which AmeriMutual or selected dealers or selected agents may sell
Shares to the public or to those persons eligible to invest in Shares as
described in the applicable Prospectus of the Trust, determined in accordance
with such Prospectus under the Securities Act relating to such Shares.
(e) "Prospectus" means the current prospectuses and statements of
additional information of each Fund and Class thereof, as currently in effect
and as amended or supplemented.
(f) "Registration Statement" means the Trust's Registration Statement
on Form N-1A and all amendments thereto filed with the SEC.
(g) "SEC" means the U.S. Securities and Exchange Commission.
(h) "Securities Act" means the Securities Act of 1933, as amended.
(i) "Securities Exchange Act" means the Securities Exchange Act of
1934, as amended.
(j) "1940 Act" means the Investment Company Act of 1940, as amended.
(e) The terms "majority of the outstanding voting securities,"
"interested person" and "assignment" shall have the same meanings as such terms
have in the 1940 Act.
15. MISCELLANEOUS
(a) No provision of this Agreement may be changed, waived, discharged
or terminated orally, but only by an instrument in writing signed by the party
against which an enforcement of the change, waiver, discharge or termination is
sought.
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(b) The laws of the State of New York shall govern this agreement
without giving effect to principles of conflicts of laws.
(c) If any provision of this Agreement shall be held or made invalid by
a court decision, statute, rule, or otherwise, the remainder of this Agreement
shall not be affected thereby. This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
in their names and on their behalf by and through their duly authorized persons,
as of the day and year first above written.
[NAME OF TRUST] AMERIMUTUAL FUND DISTRIBUTORS, INC.
By: ____________________________________By: _________________________________
[Name], [Title] , President
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DISTRIBUTION AGREEMENT
[NAME OF TRUST]
SCHEDULE A
FUNDS AND CLASSES TO BE SERVICED UNDER THIS AGREEMENT
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