Exhibit 23m(iii)
AMENDED AND RESTATED
DISTRIBUTION AND SERVICE PLAN AND AGREEMENT
With
OppenheimerFunds Distributor, Inc.
For Class C shares of
Xxxxxxxxxxx Main Street Growth and Income Fund
a series of Xxxxxxxxxxx Main Street Funds, Inc.
This Distribution and Service Plan and Agreement (the "Plan") is dated as of the 30th day of March, 2001, by and between
Xxxxxxxxxxx Main Street Funds, Inc. on behalf of its series Xxxxxxxxxxx Main Street Growth and Income Fund (the "Fund") and
OppenheimerFunds Distributor, Inc. (the "Distributor").
1. The Plan. This Plan is the Fund's written distribution and service plan for Class C shares of the Fund (the
"Shares"), contemplated by Rule 12b-1 as it may be amended from time to time (the "Rule") under the Investment Company
Act of 1940 (the "1940 Act"), pursuant to which the Fund will compensate the Distributor for its services in connection
with the distribution of Shares, and the personal service and maintenance of shareholder accounts that hold Shares
("Accounts"). The Fund may act as distributor of securities of which it is the issuer, pursuant to the Rule, according
to the terms of this Plan. The terms and provisions of this Plan shall be interpreted and defined in a manner consistent
with the provisions and definitions contained in (i) the 1940 Act, (ii) the Rule, (iii) Rule 2830 of the Conduct Rules of
the National Association of Securities Dealers, Inc., or any applicable amendment or successor to such rule (the "NASD
Conduct Rules") and (iv) any conditions pertaining either to distribution-related expenses or to a plan of distribution
to which the Fund is subject under any order on which the Fund relies, issued at any time by the U.S. Securities and
Exchange Commission ("SEC").
2. Definitions. As used in this Plan, the following terms shall have the following meanings:
(a) "Recipient" shall mean any broker, dealer, bank or other person or entity which: (i) has rendered
assistance (whether direct, administrative or both) in the distribution of Shares or has provided administrative support
services with respect to Shares held by Customers (defined below) of the Recipient; (ii) shall furnish the Distributor
(on behalf of the Fund) with such information as the Distributor shall reasonably request to answer such questions as may
arise concerning the sale of Shares; and (iii) has been selected by the Distributor to receive payments under the Plan.
(b) "Independent Directors" shall mean the members of the Fund's Board of Directors who are not "interested
persons" (as defined in the 0000 Xxx) of the Fund and who have no direct or indirect financial interest in the operation
of this Plan or in any agreement relating to this Plan.
(c) "Customers" shall mean such brokerage or other customers or investment advisory or other clients of a
Recipient, and/or accounts as to which such Recipient provides administrative support services or is a custodian or other
fiduciary.
(d) "Qualified Holdings" shall mean, as to any Recipient, all Shares owned beneficially or of record by: (i)
such Recipient, or (ii) such Recipient's Customers, but in no event shall any such Shares be deemed owned by more than
one Recipient for purposes of this Plan. In the event that more than one person or entity would otherwise qualify as
Recipients as to the same Shares, the Recipient which is the dealer of record on the Fund's books as determined by the
Distributor shall be deemed the Recipient as to such Shares for purposes of this Plan.
3. Payments for Distribution Assistance and Administrative Support Services.
(a) Payments to the Distributor. In consideration of the payments made by the Fund to the Distributor under
this Plan, the Distributor shall provide administrative support services and distribution services to the Fund. Such
services include distribution assistance and administrative support services rendered in connection with Shares (1) sold
in purchase transactions, (2) issued in exchange for shares of another investment company for which the Distributor
serves as distributor or sub-distributor, or (3) issued pursuant to a plan of reorganization to which the Fund is a
party. If the Board believes that the Distributor may not be rendering appropriate distribution assistance or
administrative support services in connection with the sale of Shares, then the Distributor, at the request of the Board,
shall provide the Board with a written report or other information to verify that the Distributor is providing
appropriate services in this regard. For such services, the Fund will make the following payments to the Distributor:
(i) Administrative Support Service Fees. Within forty-five (45) days of the end of each calendar
quarter, the Fund will make payments in the aggregate amount of 0.0625% (0.25% on an annual basis) of the average during
that calendar quarter of the aggregate net asset value of the Shares computed as of the close of each business day (the
"Service Fee"). Such Service Fee payments received from the Fund will compensate the Distributor for providing
administrative support services with respect to Accounts. The administrative support services in connection with
Accounts may include, but shall not be limited to, the administrative support services that a Recipient may render as
described in Section 3(b)(i) below.
(ii) Distribution Assistance Fees (Asset-Based Sales Charge. Within ten (10) days of the end of each
month, the Fund will make payments in the aggregate amount of 0.0625% (0.75% on an annual basis) of the average during
the month of the aggregate net asset value of Shares computed as of the close of each business day (the "Asset-Based
Sales Charge"). Such Asset-Based Sales Charge payments received from the Fund will compensate the Distributor for
providing distribution assistance in connection with the sale of Shares.
The distribution assistance services to be rendered by the Distributor in connection with the Shares may include,
but shall not be limited to, the following: (i) paying sales commissions to any broker, dealer, bank or other person or
entity that sells Shares, and/or paying such persons "Advance Service Fee Payments" (as defined below) in advance of,
and/or in amounts greater than, the amount provided for in Section 3(b) of this Agreement; (ii) paying compensation to
and expenses of personnel of the Distributor who support distribution of Shares by Recipients; (iii) obtaining financing
or providing such financing from its own resources, or from an affiliate, for the interest and other borrowing costs of
the Distributor's unreimbursed expenses incurred in rendering distribution assistance and administrative support services
to the Fund; and (iv) paying other direct distribution costs, including without limitation the costs of sales
literature, advertising and prospectuses (other than those prospectuses furnished to current holders of the Fund's shares
("Shareholders")).
(b) Payments to Recipients. The Distributor is authorized under the Plan to pay Recipients (1) distribution
assistance fees for rendering distribution assistance in connection with the sale of Shares and/or (2) service fees for
rendering administrative support services with respect to Accounts. However, no such payments shall be made to any
Recipient for any quarter in which its Qualified Holdings do not equal or exceed, at the end of such quarter, the
minimum amount ("Minimum Qualified Holdings"), if any, that may be set from time to time by a majority of the Independent
Directors. All fee payments made by the Distributor hereunder are subject to reduction or chargeback so that the
aggregate service fee payments and Advance Service Fee Payments do not exceed the limits on payments to Recipients that
are, or may be, imposed by the NASD Conduct Rules. The Distributor may make Plan payments to any "affiliated person" (as
defined in the 0000 Xxx) of the Distributor if such affiliated person qualifies as a Recipient or retain such payments if
the Distributor qualifies as a Recipient.
In consideration of the services provided by Recipients, the Distributor shall make the following payments to
Recipients:
(i) Service Fee. In consideration of administrative support services provided by a Recipient during
a calendar quarter, the Distributor shall make service fee payments to that Recipient quarterly, within forty-five (45)
days of the end of each calendar quarter, at a rate not to exceed 0.0625% (0.25% on an annual basis) of the average
during the calendar quarter of the aggregate net asset value of Shares, computed as of the close of each business day,
constituting Qualified Holdings owned beneficially or of record by the Recipient or by its Customers for a period of more
than the minimum period (the "Minimum Holding Period"), if any, that may be set from time to time by a majority of the
Independent Directors.
Alternatively, the Distributor may, at its sole option, make the following service fee payments to any Recipient
quarterly, within forty-five (45) days of the end of each calendar quarter: (A) "Advance Service Fee Payments" at a rate
not to exceed 0.25% of the average during the calendar quarter of the aggregate net asset value of Shares, computed as
of the close of business on the day such Shares are sold, constituting Qualified Holdings, sold by the Recipient during
that quarter and owned beneficially or of record by the Recipient or by its Customers, plus (B) service fee payments at a
rate not to exceed 0.0625% (0.25% on an annual basis) of the average during the calendar quarter of the aggregate net
asset value of Shares, computed as of the close of each business day, constituting Qualified Holdings owned beneficially
or of record by the Recipient or by its Customers for a period of more than one (1) year. At the Distributor's sole
option, Advance Service Fee Payments may be made more often than quarterly, and sooner than the end of the calendar
quarter. In the event Shares are redeemed less than one year after the date such Shares were sold, the Recipient is
obligated to and will repay the Distributor on demand a pro rata portion of such Advance Service Fee Payments, based on
the ratio of the time such Shares were held to one (1) year.
The administrative support services to be rendered by Recipients in connection with the Accounts may include,
but shall not be limited to, the following: answering routine inquiries concerning the Fund, assisting in the
establishment and maintenance of accounts or sub-accounts in the Fund and processing Share redemption transactions,
making the Fund's investment plans and dividend payment options available, and providing such other information and
services in connection with the rendering of personal services and/or the maintenance of Accounts, as the Distributor or
the Fund may reasonably request.
(ii) Distribution Assistance Fee (Asset-Based Sales Charge) Payments. Irrespective of whichever
alternative method of making service fee payments to Recipients is selected by the Distributor, in addition the
Distributor shall make distribution assistance fee payments to each Recipient quarterly, within forty-five (45) days
after the end of each calendar quarter, at a rate not to exceed 0.1875% (0.75% on an annual basis) of the average during
the calendar quarter of the aggregate net asset value of Shares computed as of the close of each business day
constituting Qualified Holdings owned beneficially or of record by the Recipient or its Customers for a period of more
than one (1) year. Alternatively, at its sole option, the Distributor may make distribution assistance fee payments to a
Recipient quarterly, at the rate described above, on Shares constituting Qualified Holdings owned beneficially or of
record by the Recipient or its Customers without regard to the 1-year holding period described above. Distribution
assistance fee payments shall be made only to Recipients that are registered with the SEC as a broker-dealer or are
exempt from registration.
The distribution assistance to be rendered by the Recipients in connection with the sale of Shares may include,
but shall not be limited to, the following: distributing sales literature and prospectuses other than those furnished to
current Shareholders, providing compensation to and paying expenses of personnel of the Recipient who support the
distribution of Shares by the Recipient, and providing such other information and services in connection with the
distribution of Shares as the Distributor or the Fund may reasonably request.
(c) A majority of the Independent Directors may at any time or from time to time (i) increase or decrease
the rate of fees to be paid to the Distributor or to any Recipient, but not to exceed the rates set forth above, and/or
(ii) direct the Distributor to increase or decrease any Minimum Holding Period, any maximum period set by a majority of
the Independent Directors during which fees will be paid on Shares constituting Qualified Holdings owned beneficially or
of record by a Recipient or by its Customers (the "Maximum Holding Period"), or Minimum Qualified Holdings. The
Distributor shall notify all Recipients of any Minimum Qualified Holdings, Maximum Holding Period and Minimum Holding
Period that are established and the rate of payments hereunder applicable to Recipients, and shall provide each Recipient
with written notice within thirty (30) days after any change in these provisions. Inclusion of such provisions or a
change in such provisions in a supplement or amendment to or revision of the prospectus of the Fund shall constitute
sufficient notice.
(d) The Service Fee and the Asset-Based Sales Charge on Shares are subject to reduction or elimination under
the limits to which the Distributor is, or may become, subject under the NASD Conduct Rules.
(e) Under the Plan, payments may also be made to Recipients: (i) by OppenheimerFunds, Inc. ("OFI") from its
own resources (which may include profits derived from the advisory fee it receives from the Fund), or (ii) by the
Distributor (a subsidiary of OFI), from its own resources, from Asset-Based Sales Charge payments or from the proceeds of
its borrowings, in either case, in the discretion of OFI or the Distributor, respectively.
(f) Recipients are intended to have certain rights as third-party beneficiaries under this Plan, subject to
the limitations set forth below. It may be presumed that a Recipient has provided distribution assistance or
administrative support services qualifying for payment under the Plan if it has Qualified Holdings of Shares that entitle
it to payments under the Plan. If either the Distributor or the Board believe that, notwithstanding the level of
Qualified Holdings, a Recipient may not be rendering appropriate distribution assistance in connection with the sale of
Shares or administrative support services for Accounts, then the Distributor, at the request of the Board, shall require
the Recipient to provide a written report or other information to verify that said Recipient is providing appropriate
distribution assistance and/or services in this regard. If the Distributor or the Board of Directors still is not
satisfied after the receipt of such report, either may take appropriate steps to terminate the Recipient's status as a
Recipient under the Plan, whereupon such Recipient's rights as a third-party beneficiary hereunder shall terminate.
Additionally, in their discretion a majority of the Fund's Independent Directors at any time may remove any broker,
dealer, bank or other person or entity as a Recipient, whereupon such person's or entity's rights as a third-party
beneficiary hereof shall terminate. Notwithstanding any other provision of this Plan, this Plan does not obligate or in
any way make the Fund liable to make any payment whatsoever to any person or entity other than directly to the
Distributor. The Distributor has no obligation to pay any Service Fees or Distribution Assistance Fees to any Recipient
if the Distributor has not received payment of Service Fees or Distribution Assistance Fees from the Fund.
4. Selection and Nomination of Directors. While this Plan is in effect, the selection and nomination of persons to
be Directors of the Fund who are not "interested persons" of the Fund ("Disinterested Directors") shall be committed to
the discretion of the incumbent Disinterested Directors. Nothing herein shall prevent the incumbent Disinterested
Directors from soliciting the views or the involvement of others in such selection or nomination as long as the final
decision on any such selection and nomination is approved by a majority of the incumbent Disinterested Directors.
5. Reports. While this Plan is in effect, the Treasurer of the Fund shall provide written reports to the Fund's
Board for its review, detailing the amount of all payments made under this Plan and the purpose for which the payments
were made. The reports shall be provided quarterly, and shall state whether all provisions of Section 3 of this Plan
have been complied with.
6. Related Agreements. Any agreement related to this Plan shall be in writing and shall provide that: (i) such
agreement may be terminated at any time, without payment of any penalty, by a vote of a majority of the Independent
Directors or by a vote of the holders of a "majority" (as defined in the 0000 Xxx) of the Fund's outstanding voting Class
C shares; (ii) such termination shall be on not more than sixty days' written notice to any other party to the agreement;
(iii) such agreement shall automatically terminate in the event of its "assignment" (as defined in the 1940 Act); (iv)
such agreement shall go into effect when approved by a vote of the Board and its Independent Directors cast in person at
a meeting called for the purpose of voting on such agreement; and (v) such agreement shall, unless terminated as herein
provided, continue in effect from year to year only so long as such continuance is specifically approved at least
annually by a vote of the Board and its Independent Directors cast in person at a meeting called for the purpose of
voting on such continuance.
7. Effectiveness, Continuation, Termination and Amendment. This Plan has been approved by a vote of the Board and
of its Independent Directors cast in person at a meeting called on February 29, 2000, for the purpose of voting on this
Plan and shall take effect as of the date first set forth above. Unless terminated as hereinafter provided, it shall
continue in effect until December 31, 2001 and thereafter from year to year or as the Board may otherwise determine but
only so long as such continuance is specifically approved at least annually by a vote of the Board and its Independent
Directors cast in person at a meeting called for the purpose of voting on such continuance.
This Plan may not be amended to increase materially the amount of payments to be made under this Plan, without
approval of the Class C Shareholders at a meeting called for that purpose and all material amendments must be approved by
a vote of the Board and of the Independent Directors.
This Plan may be terminated at any time by a vote of a majority of the Independent Directors or by the vote of
the holders of a "majority" (as defined in the 0000 Xxx) of the Fund's outstanding Class C voting shares. In the event
of such termination, the Board and its Independent Directors shall determine whether the Distributor shall be entitled to
payment from the Fund of all or a portion of the Service Fee and/or the Asset-Based Sales Charge in respect of Shares
sold prior to the effective date of such termination.
Xxxxxxxxxxx Main Street Funds, Inc.,
on behalf of its series, Xxxxxxxxxxx
Main Street Growth and Income Fund
/s/ Xxxxxx X. Xxxxxxx
by: ___________________
Xxxxxx X. Xxxxxxx
Secretary
OppenheimerFunds Distributor, Inc.
/s/ Xxxxxxxxx X. Xxxx
by: __________________________
Xxxxxxxxx X. Xxxx
Vice President and Secretary
700-12b1-C(0301).doc
