DELAWARE GROUP EQUITY FUNDS V
DISTRIBUTION AGREEMENT
Distribution Agreement (the "Agreement") made as of this 19th day of
April, 2001 by and between DELAWARE GROUP EQUITY FUNDS V, a Delaware business
trust (the "Trust"), for the series identified on Schedule I attached hereto, as
from time to time amended (the "Series"), and DELAWARE DISTRIBUTORS, L.P. (the
"Distributor"), a Delaware limited partnership.
WITNESSETH
WHEREAS, the Trust is an investment company regulated by Federal and
State regulatory bodies, and
WHEREAS, the Distributor is engaged in the business of promoting the
distribution of the securities of investment companies and, in connection
therewith and acting solely as agent for such investment companies and not as
principal, advertising, promoting, offering and selling their securities to the
public, and
WHEREAS, the Trust desires to enter into an agreement with the
Distributor as of the date hereof, pursuant to which the Distributor shall serve
as the national distributor of each class of each Series identified on Schedule
I hereto, as from time to time amended, which Trust, Series and classes may do
business under the names set forth on Schedule I hereto or such other names as
the Board of Trustees may designate from time to time, on the terms and
conditions set forth below.
NOW, THEREFORE, the parties hereto, intending to be legally bound
hereby, agree as follows:
1. The Trust hereby engages the Distributor to promote the
distribution of the shares of each Series and, in connection
therewith and as agent for the Trust and not as principal, to
advertise, promote, offer and sell shares of each Series to
the public.
2. (a) The Distributor agrees to serve as distributor of
each Series' shares and, as agent for the Trust and
not as principal, to advertise, promote and use its
best efforts to sell each Series' shares wherever
their sale is legal, either through dealers or
otherwise, in such places and in such manner, not
inconsistent with the law and the provisions of this
Agreement and the Trust's Registration Statement
under the Securities Act of 1933, including the
Prospectuses contained therein and the Statements of
Additional Information contained therein, as may be
mutually determined by the Trust and the Distributor
from time to time.
(b) For the Institutional Class Shares of each Series,
the Distributor will bear all costs of financing any
activity which is primarily intended to result in the
sale of that class of shares, including, but not
necessarily limited to, advertising, compensation of
underwriters, dealers and sales personnel, the
printing and mailing of sales literature and
distribution of that class of shares.
(c) For its services as agent for the Class A Shares,
Class B Shares, and Class C Shares of each Series,
the Distributor shall be entitled to compensation on
each sale or redemption, as appropriate, of shares of
such classes equal to any front-end or deferred sales
charge described in the Prospectus for such Series,
as amended and supplemented from time to time and may
allow concessions to dealers in such amounts and on
such terms as are therein set forth.
(d) For the Class A Shares, Class B Shares, and Class C
Shares of each Series, the Trust shall, in addition,
compensate the Distributor for its services as
provided in the Distribution Plan as adopted on
behalf of the Class A Shares, Class B Shares, and
Class C Shares, respectively, pursuant to Rule 12b-1
under the Investment Company Act of 1940 (the
"Plans"), copies of which as presently in force are
attached hereto as Exhibits and at the rates set
forth on Schedule I hereto, as from time to time
amended, or at such lower rates as may be set from
time to time by the Board in agreement with the
Trust.
3. (a) The Trust agrees to make available for sale by the
Trust through the Distributor all or such part of the
authorized but unissued shares of beneficial interest
of the Series as the Distributor shall require from
time to time and, except as provided in Paragraph
3(b) hereof, the Trust will not sell Series' shares
other than through the efforts of the Distributor.
(b) The Trust reserves the right from time to time (1) to
sell and issue shares other than for cash; (2) to
issue shares in exchange for substantially all of the
assets of any corporation or trust, or in exchange of
shares of any corporation or trust; (3) to pay stock
dividends to its shareholders, or to pay dividends in
cash or shares of beneficial interest at the option
of its shareholders, or to sell shares of beneficial
interest to existing shareholders to the extent of
dividends payable from time to time in cash, or to
split up or combine its outstanding shares; (4) to
offer shares for cash to its shareholders as a whole,
by the use of transferable rights or otherwise, and
to sell and issue shares pursuant to such offers; and
(5) to act as its own distributor in any jurisdiction
in which the Distributor is not registered as a
broker-dealer.
4. The Distributor may, at its expense, select and contract with
one or more registered broker-dealers to perform some or all
of the services for a Series for which it is responsible under
this agreement. The Distributor will be responsible for paying
the compensation, if any, to any such broker-dealer for its
services with respect to the Series. The Distributor may
terminate the services of any such broker-dealer at any time
in its sole discretion, and shall at such time assume the
responsibilities of such broker-dealer unless or until a
replacement is selected and approved by the Board of Trustees.
The Distributor will continue to have responsibility for all
distribution-related services furnished by any such
broker-dealer.
5. The Trust warrants the following:
(a) The Trust is, or will be, a properly registered
investment company, and any and all Series' shares
which it will sell through the Distributor are, or
will be, properly registered with the Securities and
Exchange Commission ("SEC").
(b) The provisions of this Agreement do not violate the
terms of any instrument by which the Trust is bound,
nor do they violate any law or regulation of any body
having jurisdiction over the Trust or its property.
6. (a) The Trust will supply to the Distributor a conformed
copy of the Registration Statement and all amendments
thereto, including all exhibits and each Prospectus
and Statement of Additional Information.
(b) The Trust will register or qualify the Series' shares
for sale in such states as is deemed desirable.
(c) The Trust, without expense to the Distributor:
(1) will give and continue to give such
financial statements and other information
as may be required by the SEC or the proper
public bodies of the states in which the
Series' shares may be qualified;
(2) from time to time, will furnish to the
Distributor as soon as reasonably
practicable true copies of its periodic
reports to shareholders;
(3) will promptly advise the Distributor in
person or by telephone or telegraph, and
promptly confirm such advice in writing, (a)
when any amendment or supplement to the
Registration Statement becomes effective,
(b) of any request by the SEC for amendments
or supplements to the Registration Statement
or the Prospectuses or for additional
information, and (c) of the issuance by the
SEC of any Stop Order suspending the
effectiveness of the Registration Statement,
or the initiation of any proceedings for
that purpose;
(4) if at any time the SEC shall issue any Stop
Order suspending the effectiveness of the
Registration Statement, will make every
reasonable effort to obtain the lifting of
such order at the earliest possible moment;
(5) before filing any further amendment to the
Registration Statement or to any Prospectus,
will furnish to the Distributor copies of
the proposed amendment and will not, at any
time, whether before or after the effective
date of the Registration Statement, file any
amendment to the Registration Statement or
supplement to any Prospectus of which the
Distributor shall not previously have been
advised or to which the Distributor shall
reasonably object (based upon the accuracy
or completeness thereof) in writing;
(6) will continue to make available to its
shareholders (and forward copies to the
Distributor) of such periodic, interim and
any other reports as are now, or as
hereafter may be, required by the provisions
of the Investment Company Act of 1940, as
amended; and
(7) will, for the purpose of computing the
offering price of each class of each Series'
shares, advise the Distributor within two
hours after the close of the New York Stock
Exchange (or as soon as practicable
thereafter) on each business day upon which
the New York Stock Exchange may be open of
the net asset value per share of each class
of each Series' shares of beneficial
interest outstanding, determined in
accordance with any applicable provisions of
law and the provisions of the Agreement and
Declaration of Trust, as amended, of the
Trust as of the close of business on such
business day. In the event that prices are
to be calculated more than once daily, the
Trust will promptly advise the Distributor
of the time of each calculation and the
price computed at each such time.
7. The Distributor agrees to submit to the Trust, prior to its
use, the form of all sales literature proposed to be generally
disseminated by or for the Distributor, all advertisements
proposed to be used by the Distributor, all sales literature
or advertisements prepared by or for the Distributor for such
dissemination or for use by others in connection with the sale
of the Series' shares, and the form of dealers' sales contract
the Distributor intends to use in connection with sales of the
Series' shares. The Distributor also agrees that the
Distributor will submit such sales literature and
advertisements to the NASD, SEC or other regulatory agency as
from time to time may be appropriate, considering practices
then current in the industry. The Distributor agrees not to
use such form of dealers' sales contract or to use or to
permit others to use such sales literature or advertisements
without the written consent of the Trust if any regulatory
agency expresses objection thereto or if the Trust delivers to
the Distributor a written objection thereto.
8. The purchase price of each share sold hereunder shall be the
offering price per share mutually agreed upon by the parties
hereto and, as described in the Trust's Prospectuses, as
amended from time to time, determined in accordance with any
applicable provision of law, the provisions of its Agreement
and Declaration of Trust and the Conduct Rules of NASD
Regulation, Inc.
9. The responsibility of the Distributor hereunder shall be
limited to the promotion of sales of Series' shares. The
Distributor shall undertake to promote such sales solely as
agent of the Trust, and shall not purchase or sell such shares
as principal. Orders for Series' shares and payment for such
orders shall be directed to the Trust's agent, Delaware
Service Company, Inc., for acceptance on behalf of the Trust.
The Distributor is not empowered to approve orders for sales
of Series' shares or accept payment for such orders. Sales of
Series' shares shall be deemed to be made when and where
accepted by Delaware Service Company, Inc. on behalf of the
Trust.
10. With respect to the apportionment of costs between the Trust
and the Distributor of activities with which both are
concerned, the following will apply:
(a) The Trust and the Distributor will cooperate in
preparing the Registration Statements, the
Prospectuses, the Statements of Additional
Information, and all amendments, supplements and
replacements thereto. The Trust will pay all costs
incurred in the preparation of the Trust's
Registration Statement, including typesetting, the
costs incurred in printing and mailing Prospectuses
and Annual, Semi-Annual and other financial reports
to its own shareholders and fees and expenses of
counsel and accountants.
(b) The Distributor will pay the costs incurred in
printing and mailing copies of Prospectuses to
prospective investors.
(c) The Distributor will pay advertising and promotional
expenses, including the costs of literature sent to
prospective investors.
(d) The Trust will pay the costs and fees incurred in
registering or qualifying the Series' shares with the
various states and with the SEC.
(e) The Distributor will pay the costs of any additional
copies of Trust financial and other reports and other
Trust literature supplied to the Distributor by the
Trust for sales promotion purposes.
11. The Distributor may engage in other business, provided such
other business does not interfere with the performance by the
Distributor of its obligations under this Agreement.
12. The Trust agrees to indemnify, defend and hold harmless from
the assets of the relevant Series the Distributor and each
person, if any, who controls the Distributor within the
meaning of Section 15 of the Securities Act of 1933, from and
against any and all losses, damages, or liabilities to which,
jointly or severally, the Distributor or such controlling
person may become subject, insofar as the losses, damages or
liabilities arise out of the performance of its duties
hereunder, except that the Trust shall not be liable for
indemnification of the Distributor or any controlling person
thereof for any liability to the Trust or its shareholders to
which they would otherwise be subject by reason of willful
misfeasance, bad faith, or gross negligence in the performance
of their duties under this Agreement.
13. Copies of financial reports, Registration Statements and
Prospectuses, as well as demands, notices, requests, consents,
waivers, and other communications in writing which it may be
necessary or desirable for either party to deliver or furnish
to the other will be duly delivered or furnished, if delivered
to such party at its address shown below during regular
business hours, or if sent to that party by registered mail or
by prepaid telegram filed with an office or with an agent of
Western Union or another nationally recognized telegraph
service, in all cases within the time or times herein
prescribed, addressed to the recipient at Xxx Xxxxxxxx Xxxxxx,
Xxxxxxxxxxxx, Xxxxxxxxxxxx 00000, or at such other address as
the Trust or the Distributor may designate in writing and
furnish to the other.
14. This Agreement shall not be assigned, as that term is defined
in the Investment Company Act of 1940, by the Distributor and
shall terminate automatically in the event of its attempted
assignment by the Distributor. This Agreement shall not be
assigned by the Trust without the written consent of the
Distributor signed by its duly authorized officers and
delivered to the Trust. Except as specifically provided in the
indemnification provision contained in Paragraph 11 herein,
this Agreement and all conditions and provisions hereof are
for the sole and exclusive benefit of the parties hereto and
their legal successors and no express or implied provision of
this Agreement is intended or shall be construed to give any
person other than the parties hereto and their legal
successors any legal or equitable right, remedy or claim under
or in respect of this Agreement or any provisions herein
contained.
15. (a) This Agreement shall be executed and become effective
as of the date first written above, and shall become
effective with respect to a particular Series as of
the effective date set forth in Schedule I for that
Series. It shall remain in force for a period of two
years from the date hereof for each Series and from
year to year thereafter, but only so long as such
continuance is specifically approved at least
annually by the Board of Trustees or, with respect to
each Series, by vote of a majority of the outstanding
voting securities of that Series and only if the
terms and the renewal thereof have been approved by
the vote of a majority of the Trustees of the Trust
who are not parties hereto or interested persons of
any such party, cast in person at a meeting called
for the purpose of voting on such approval.
(b) The Distributor may terminate this Agreement as to
any Series on written notice to the Trust at any time
in case the effectiveness of the Registration
Statement shall be suspended, or in case Stop Order
proceedings are initiated by the SEC in respect of
the Registration Statement and such proceedings are
not withdrawn or terminated within thirty days. The
Distributor may also terminate this Agreement as to
any Series at any time by giving the Trust written
notice of its intention to terminate the Agreement at
the expiration of three months from the date of
delivery of such written notice of intention to the
Trust.
(c) The Trust may terminate this Agreement as to any
Series at any time on at least thirty days' prior
written notice to the Distributor (1) if proceedings
are commenced by the Distributor or any of its
partners for the Distributor's liquidation or
dissolution or the winding up of the Distributor's
affairs; (2) if a receiver or trustee of the
Distributor or any of its property is appointed and
such appointment is not vacated within thirty days
thereafter; (3) if, due to any action by or before
any court or any federal or state commission,
regulatory body, or administrative agency or other
governmental body, the Distributor shall be prevented
from selling securities in the United States or
because of any action or conduct on the Distributor's
part, sales of the shares are not qualified for sale.
The Trust may also terminate this Agreement as to any
Series at any time upon prior written notice to the
Distributor of its intention to so terminate at the
expiration of three months from the date of the
delivery of such written notice to the Distributor.
16. The validity, interpretation and construction of this
Agreement, and of each part hereof, will be governed by the
laws of the Commonwealth of Pennsylvania.
17. In the event any provision of this Agreement is determined to
be void or unenforceable, such determination shall not affect
the remainder of the Agreement, which shall continue to be in
force.
DELAWARE DISTRIBUTORS, L.P.
DELAWARE DISTRIBUTORS, INC.,
General Partner
By: /s/ Xxxxxxx X. Xxxxxxxx
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Name: Xxxxxxx X. Xxxxxxxx
Title: President/Chief Executive Officer
DELAWARE GROUP EQUITY FUNDS V
on behalf of the Series listed on Schedule I
By: /s/ Xxxxx X. Xxxxxx
----------------------------------------
Name: Xxxxx X. Xxxxxx
Title: President/Chief Executive
Officer/Chief Financial Officer
