Exhibit (e)(1)
DISTRIBUTION AGREEMENT
AGREEMENT dated as of January 15, 2003, between Xxxxxxxx Capital
Management Trust, a statutory trust established under the laws of the State of
Delaware (the "Fund"), having its principal place of business at 000 Xxxxx
Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, and ALPS Distributors, Inc., a Colorado
corporation and a registered broker-dealer under the Securities Exchange Act of
1934, having its principal place of business at 0000 Xxxxxxxx, Xxxxx 0000,
Xxxxxx, Xxxxxxxx 00000 (the "Distributor").
WHEREAS, the Fund is an open-end management investment company
registered under the Investment Company Act of 1940, as amended, presently
consisting of the portfolios and classes listed in Appendix A, attached hereto;
WHEREAS, the Fund wishes to employ the services of the Distributor in
connection with the promotion and distribution of its shares (the "Shares");
NOW, THEREFORE, in consideration of the mutual promises and
undertakings herein contained, the parties agree as follows:
1. Documents -- The Fund has furnished or will furnish, upon request, the
Distributor with copies of the Fund's Declaration of Trust, advisory agreement,
custodian agreement, transfer agency agreement, administration agreement,
current prospectus and statement of additional information, and all forms
relating to any plan, program or service offered by the Fund. The Fund shall
furnish, within a reasonable time period, to the Distributor a copy of any
amendment or supplement to any of the above-mentioned documents. Upon request,
the Fund shall furnish promptly to the Distributor any additional documents
necessary or advisable to perform its functions hereunder. From time to time,
each party shall be permitted reasonable access to records maintained by the
other party in connection with this Agreement to the extent necessary to perform
its obligations hereunder. As used in this Agreement the terms "registration
statement", "prospectus" and "statement of additional information" shall mean
any registration statement, prospectus and statement of additional information
filed by the Fund with the Securities and Exchange Commission ("SEC") and any
amendments and supplements thereto that are filed with the SEC.
2. Sales of Shares -- The Fund grants to the Distributor the right to sell
the Shares as agent on behalf of the Fund, during the term of this Agreement,
subject to the registration requirements of the Securities Act of 1933, as
amended (the "1933 Act"), the Investment Company Act of 1940, as amended (the
"1940 Act") and of the laws governing the sale of securities in the various
states ("Blue Sky Laws"), under the terms and conditions set forth in this
Agreement. The Distributor shall have the right to sell, as agent on behalf of
the Fund, the Shares covered by the registration statement, prospectus and
statement of additional information for the Fund then in effect under the 1933
Act and 1940 Act.
3. Sales of Shares by the Fund -- The rights granted to the Distributor
shall be nonexclusive in that the Fund reserves the right to sell Shares to
investors on applications received and accepted by the Fund.
4. Public Offering Price - Except as otherwise noted in the Fund's current
prospectus and/or statement of additional information, all Shares sold to
investors by the Distributor or the Fund will be sold at the public offering
price. The public offering price for all accepted subscriptions will be the net
asset value per Share, as determined in the manner described in the Fund's
current prospectus and/or statement of additional information, plus a sales
charge (if any) as described in the Fund's current prospectus and/or statement
of additional information. The Fund shall in all cases receive the net asset
value per Share on
all sales. If a sales charge is in effect, the Distributor shall have the right,
subject to such rules or regulations of the SEC as may then be in effect
pursuant to Section 22 of the 1940 Act to pay a portion of the sales charge to
dealers who have sold Shares of the Fund.
5. Suspension of Sales -- The Fund reserves the right to suspend sales and
the Distributor's authority to process orders for Shares on behalf of the Fund
if, in the judgment of the Fund, it is in the best interests of the Fund to do
so. Suspension will continue for such period as may be determined by the Fund.
6. Solicitation of Sales -- In consideration of these rights granted to
the Distributor, the Distributor agrees to use its best efforts to solicit
orders for the sale of the Shares at the public offering price and will
undertake, at its own cost, such advertising and promotion as it believes is
reasonable in connection with such solicitation, subject to the Fund's approval.
The Distributor shall be responsible for reviewing and filing any sales
literature or advertising material (including material disseminated through
radio, television or other electronic media) concerning Fund shares with the SEC
and the National Association of Securities Dealers, Inc. (the "NASD") to the
extent required by the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), and the 1940 Act and the rules and regulations thereunder, and
by the rules of the NASD. All such materials must be approved by the
Distributor, in writing, prior to use. This shall not prevent the Distributor
from entering into like arrangements (including arrangements involving the
payment of underwriting commissions) with other issuers. The Distributor will
act only on its own behalf as principal should it choose to enter into selling
agreements with selected dealers or others.
7. Authorized Representations -- The Distributor is not authorized by the
Fund to give any information or to make any representations other than those
contained in the registration statement or prospectus and statement of
additional information, or contained in shareholder reports or other material
that may be prepared by or on behalf of the Fund for the Distributor's use.
Consistent with the foregoing, the Distributor may prepare and distribute sales
literature or other material as it may deem appropriate in consultation with the
Fund, provided such sales literature complies with applicable law and
regulations.
8. Registration of Shares -- The Fund agrees that it will take all action
necessary to register the Shares under the 1933 Act and the 1940 Act (subject to
the necessary approval of its shareholders). The Fund shall make available to
the Distributor, at the Distributor's expense, such number of copies of its
prospectus and statement of additional information as the Distributor may
reasonably request. The Fund shall furnish to the Distributor copies of all
information, financial statements and other papers which the Distributor may
reasonably request for use in connection with the distribution of Shares of the
Fund.
9. Distribution Fees and Expenses -- The Distributor shall furnish, at its
expense and without cost to the Fund, the services of personnel to the extent
that such services are required to carry out its obligations under this
Agreement.
10. Fund Expenses -- Unless otherwise agreed to by the parties hereto in
writing or by the Fund and the Fund's other agents, the Distributor shall not be
responsible for fees and expenses in connection with (a) filing of any
registration statement, printing and the distribution of any prospectus and
statement of additional information under the 1933 Act and/or the 1940 Act and
amendments prepared for use in connection with the offering of Shares for sale
to the public, preparing, setting in type, printing and mailing the prospectus,
statement of additional information and any supplements thereto sent to existing
shareholders, (b) preparing, setting in type, printing and mailing any report
(including annual and semi-annual reports) or other communication to
shareholders of the Fund, and (c) the Blue Sky registration and qualification of
Shares for sale in the various states in which the officers of the Fund shall
determine it advisable to qualify such Shares for sale.
11. Use of the Distributor's Name -- The Fund shall not use the name of the
Distributor, or any of its affiliates, in any prospectus or statement of
additional information, sales literature, and other material relating to the
Fund in any manner without the prior written consent of the Distributor (which
shall not be unreasonably withheld); provided, however, that the Distributor
hereby approves all lawful uses of the names of the Distributor and its
affiliates in the prospectus and statement of additional information of the Fund
and in all other materials which merely refer in accurate terms to their
appointment hereunder or which are required by the SEC, NASD, or any state
securities authority.
12. Use of the Fund's Name -- Neither the Distributor nor any of its
affiliates shall use the name of the Fund in any publicly disseminated
materials, including sales literature in any manner without the prior written
consent of the Fund (which shall not be unreasonably withheld); provided,
however, that the Fund hereby approves all lawful uses of its name in any
required regulatory filings of the Distributor which merely refer in accurate
terms to the appointment of the Distributor hereunder, or which are required by
the SEC, NASD, or any state securities authority.
13. Insurance -- The Distributor agrees to maintain liability insurance
coverages which are, in scope and amount, consistent with coverages customary
for distribution activities relating to the Fund. The Distributor shall notify
the Fund upon receipt of any notice of material, adverse change in the terms or
provisions of its insurance coverage. Such notification shall include the date
of change and the reason or reasons therefor. The Distributor shall notify the
Fund of any material claims against it, whether or not covered by insurance, and
shall notify the Fund from time to time as may be appropriate of the total
outstanding claims made by it under its insurance coverage.
14. Indemnification -- The Fund 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
(collectively, "Distributor Indemnitees"), against any loss, liability, claim,
damages or expenses (including the reasonable cost of investigating or defending
any alleged loss, liability, claim, damages or expense and reasonable counsel
fees incurred in connection therewith) arising by reason of any person acquiring
any Shares, based upon the ground that the registration statement, prospectus,
statement of additional information, shareholder reports or other information
filed or made public by the Fund (as amended from time to time) included an
untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary in order to make the statements therein not
misleading under the 1933 Act, the 1940 Act or any other statute or the common
law. However, the Fund does not agree to indemnify the Distributor Indemnitees
or hold them harmless to the extent that the statement or omission was made in
reliance upon, and in conformity with, information furnished to the Fund by or
on behalf of the Distributor. In no case (i) is the indemnity of the Fund in
favor of the Distributor Indemnitees to be deemed to protect the Distributor
Indemnitees against any liability to the Fund or its security holders to which
the Distributor Indemnitees would otherwise be subject by reason of willful
misfeasance, bad faith or negligence in the performance of its duties or by
reason of its reckless disregard of its obligations and duties under this
Agreement, or (ii) is the Fund to be liable under its indemnity agreement
contained in this paragraph with respect to any claim made against a Distributor
Indemnitee unless the Distributor Indemnitees shall have notified the Fund in
writing of the claim within a reasonable period of time after the summons or
other first written notification giving information of the nature of the claims
shall have been served upon the Distributor Indemnitee (or after the Distributor
Indemnitee shall have received notice of service on any designated agent).
However, failure to notify the Fund of any claim shall not relieve the Fund from
any liability which it may have to any person against whom such action is
brought otherwise than on account of its indemnity agreement contained in this
paragraph. The Fund 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, and if the Fund elects to assume the defense, the defense
shall be conducted by counsel chosen by the Fund. In the event the Fund
elects to assume the defense of any suit and retain counsel, the Distributor
Indemnitee(s), defendant(s) in the suit, shall bear the fees and expenses of any
additional counsel retained by them. If the Fund does not elect to assume the
defense of any suit, it will reimburse the Distributor Indemnitee(s) that are
defendant(s) in the suit for the reasonable fees and expenses of any counsel
retained by them. The Fund agrees to notify the Distributor promptly of the
commencement of any litigation or proceeding against it or any of its officers
in connection with the issuance or sale of any of the Shares.
The Distributor also covenants and agrees that it will indemnify and hold
harmless the Fund and each of its trustees, officers and each person, if any,
who controls the Fund within the meaning of Section 15 of the 1933 Act
(collectively "Fund Indemnitees"), against any loss, liability, damages, claims
or expense (including the reasonable cost of investigating or defending any
alleged loss, liability, damages, claim or expense and reasonable counsel fees
incurred in connection therewith) arising by reason of any person acquiring any
Shares, based upon the 1933 Act, the 1940 Act or any other statute or common
law, alleging (a) any wrongful act of the Distributor or any of its employees or
(b) that any sales literature, advertisements, information, statements or
representations used or made by the Distributor or any of its affiliates or
employees or that the registration statement, prospectus, statement of
additional information, (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 therein or necessary in order to make the statements therein not
misleading, insofar as the statement or omission was made in reliance upon, and
in conformity with, information furnished to the Fund by or on behalf of the
Distributor. In no case (i) is the indemnity of the Distributor in favor of the
Fund Indemnitees to be deemed to protect the Fund Indemnitees against any
liability to which the Fund Indemnitees would otherwise be subject by reason of
willful misfeasance, bad faith or negligence in the performance of its duties or
by reason of its reckless disregard of its obligations and duties under this
Agreement, or (ii) is the Distributor to be liable under its indemnity agreement
contained in this paragraph with respect to any claim made against a Fund
Indemnitee unless the Fund Indemnitee shall have notified the Distributor in
writing of the claim promptly after the summons or other first written
notification giving information of the nature of the claim shall have been
served upon the Fund Indemnitee (or after the Fund Indemnitee 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 Fund Indemnitee otherwise than on account of
its indemnity agreement contained in this paragraph. In the case of any notice
to the Distributor it 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, and if the Distributor elects to assume the defense, the
defense shall be conducted by counsel chosen by it and satisfactory to the Fund
Indemnitee(s), defendant(s) in the suit. In the event that the Distributor
elects to assume the defense of any suit and retain counsel, the Fund
Indemnitee(s) that are defendant(s) in the suit, shall bear the fees and expense
of any additional counsel retained by them. If the Distributor does not elect to
assume the defense of any suit, it will reimburse the Fund Indemnitee(s) that
are defendant(s) in the suit, for the reasonable fees and expenses of any
counsel retained by them. The Distributor agrees to notify the Fund promptly of
the commencement of any litigation or proceedings against it in connection with
the Fund and sale of any of the Shares.
15. Supplemental Information -- The Distributor and the Fund shall
regularly consult with each other regarding the Distributor's performance of its
obligations under this Agreement. In connection therewith, the Fund shall submit
to the Distributor at a reasonable time in advance of filing with the SEC
reasonably final copies of any amended or supplemented registration statement
(including exhibits) under the 1933 Act and the 1940 Act; provided, however,
that nothing contained in this Agreement shall in any way limit the Fund's right
to file at any time such amendments to any registration statement and/or
supplements to any prospectus or statement of additional information, of
whatever character, as the Fund may deem advisable, such right being in all
respects absolute and unconditional.
The Distributor acknowledges that the only information provided to it by the
Fund is that contained in the registration statement, the prospectus, the
statement of additional information and reports and financial information
referred to herein. Neither the Distributor nor any other person is authorized
by the Fund to give any information or to make any representations, other than
those contained in such documents and any sales literature or advertisements
specifically approved by appropriate representatives of the Fund.
16. Term -- This Agreement shall become effective as of January 15, 2003,
and shall continue until two years from such date and thereafter shall continue
automatically for successive annual periods, provided such continuance is
specifically approved at least annually (i) by the Fund's Board of Trustees or
(ii) by a vote of a majority of the outstanding voting securities of the Fund
(as defined in the 1940 Act), provided that in either event the continuance is
also approved by the majority of the Directors of the Fund who are not
interested persons (as defined in the 0000 Xxx) of any party to this Agreement
by vote cast in person at a meeting called for the purpose of voting on such
approval. This Agreement may be terminated at any time without payment of any
penalty on sixty days' written notice by the Fund's Board of Directors, by vote
of the holders of a majority of the outstanding voting securities of the Fund or
by the Distributor. This Agreement shall automatically terminate in the event of
its assignment (as defined in the 1940 Act).
Upon the termination of this Agreement, the Distributor, at the Fund's expense
and direction, shall transfer to such successor as the Fund shall specify all
relevant books, records and other data established or maintained by the
Distributor under this Agreement.
17. Anti-Money Laundering - The Distributor agrees to maintain an
anti-money laundering program in compliance with Title III of the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001 (the "USA Patriot Act") and all applicable laws
and regulations promulgated thereunder. The Distributor confirms that, as soon
as possible, following the request from the Fund, the Distributor will supply
the Fund with copies of the Distributor's anti-money laundering policy and
procedures, and such other relevant certifications and representations regarding
such policy and procedures as the Fund may reasonably request from time to time.
18. Notice -- Any notice required or permitted to be given by either party
to the other shall be deemed sufficient if sent by (i) telecopier (fax) or (ii)
registered or certified mail, postage prepaid, addressed by the party giving
notice to the other party at the last address furnished by the other party to
the party giving notice: if to the Fund at 000 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx
00000, Attn: Xxxx St. Clair; and if to the Distributor, at 0000 Xxxxxxxx, Xxxxx
0000, Xxxxxx, Xxxxxxxx, 00000, Attn: General Counsel, or such other telecopier
(fax) number or address as may be furnished by one party to the other.
19. Confidential Information -- The Distributor, its officers, directors,
employees and agents will treat confidentially and as proprietary information of
the Fund all records and other information relative to the Fund and to prior or
present shareholders or to those persons or entities who respond to the
Distributor's inquiries concerning investment in the Fund, and will not use such
records and information for any purposes other than performance of its
responsibilities and duties hereunder. If the Distributor is requested or
required by, but not limited to, depositions, interrogatories, requests for
information or documents, subpoena, civil investigation, demand or other action,
proceeding or process or as otherwise required by law, statute, regulation,
writ, decree or the like to disclose such information, the Distributor will
provide the Fund with prompt written notice of any such request or requirement
so that the Fund may seek an appropriate protective order or other appropriate
remedy and/or waive compliance with this provision. If such order or other
remedy is not sought, or obtained, or waiver not received within a reasonable
period following such notice, then the Distributor may without liability
hereunder, disclose to the person, entity or agency requesting or requiring the
information, that portion of the information that is legally required in the
reasonable opinion of the Distributor's counsel.
20. Limitation of Liability -- Copies of the Certificate of Trust of the
Fund are on file with the Secretary of State of the State of Delaware, and
notice is hereby given that this agreement is executed on behalf of the Trustees
of the Fund. The Distributor is expressly put on notice of the limitation of
shareholder, officer and Trustee liability as set forth in the Declaration of
Trust of the Fund and agrees that the obligations assumed by the Fund under this
contract shall be limited in all cases to the Fund and its assets. The
Distributor agrees that it shall not seek satisfaction of any such obligation
from the shareholders or any individual shareholder of the Fund. Nor shall the
Distributor seek satisfaction of any such obligation from the Trustees, officers
or any individual Trustee or officer of the Fund. Any obligations of the Fund
entered into in the name or on behalf thereof by any of the Trustees or
officers, representatives or agents are made not individually, but in such
capacities, and are not binding upon any of the Trustees or officers,
shareholders, or representatives of the Fund personally, but bind only the Fund
property, and all persons dealing with any class of Shares of the Fund must look
solely to the Fund property belonging to such class for the enforcement of any
claims against the Fund.
21. Miscellaneous -- Each party agrees to perform such further acts and
execute such further documents as are necessary to effectuate the purposes
hereof. This Agreement shall be construed, interpreted, and enforced in
accordance with and governed by the laws of the State of Colorado. The captions
in this Agreement are included for convenience of reference only and in no way
define or delimit any of the provisions hereof or otherwise affect their
construction or effect. This Agreement may not be changed, waived, discharged or
amended except by written instrument that shall make specific reference to this
Agreement and which shall be signed by the party against which enforcement of
such change, waiver, discharge or amendment is sought. This Agreement may be
executed simultaneously in two or more counterparts, each of which taken
together shall constitute one and the same instrument. This Agreement contains
the entire agreement of the parties with respect to the subject matter contained
herein, and supersedes all prior agreements, arrangements and understandings.
All activities by the Distributor and its agents and employees as distributor of
the Shares shall comply with all applicable laws, rules and regulations
including, without limitation, all rules and regulations made or adopted by the
SEC or any securities association registered under the Exchange Act. The
Distributor represents and warrants that it is a member of the NASD and agrees
to abide by all of the rules and regulations of the NASD, including, without
limitation, its Conduct Rules, as defined thereunder. The Distributor agrees to
notify the Fund immediately in the event of its expulsion or suspension by the
NASD. Expulsion of the Distributor by the NASD will terminate this Agreement
immediately without notice. Suspension of the Distributor by the NASD will
terminate this Agreement effective immediately upon written notice of
termination to the Distributor from the Fund. The Distributor further represents
that it is registered in all fifty (50) states, and shall maintain such
registration. The Distributor shall not conduct any activity in any state if to
do so would require a license that the Distributor does not have.
The Distributor will promptly transmit any orders received by it for purchase,
redemption or exchange of the Shares to the Fund's transfer agent.
IN WITNESS WHEREOF, the Fund has executed this instrument in its name and
behalf, and the Distributor has executed this instrument in its name and behalf,
as of the date and year first above written.
XXXXXXXX CAPITAL MANAGEMENT TRUST ALPS DISTRIBUTORS, INC.
By: /s/ Dail St. Claire By: /s/ Xxxxxx X. May
------------------ -----------------
Name: Dail St. Claire Name: Xxxxxx X. May
Title: President Senior Vice President
APPENDIX A
FUND(S)
Xxxxxxxx Capital Liquid Assets
