77Q1
Xxxx Xxxxx Partner Capital Preservation
Fund II
April 6, 2007
PFS Investments Inc.
0000 Xxxxxxxxxxxx Xxxx.
Duluth, Georgia 30099-0001
Re: Distribution Agreement
Ladies and Gentlemen:
Reference is made to the Distribution
Agreements (each, as amended to date, an
Agreement and, collectively, the
Agreements), by and between each
investment management company identified
as an Old Fund on Exhibit A hereto
(each, an Investment Company and,
collectively, the Investment Companies),
with respect to one or more of its series,
if any, identified as an Old Portfolio
on Exhibit A hereto (each, a Portfolio
and, collectively, the Portfolios), and
PFS Investments Inc.
In connection with a restructuring of
the complex of which the Investment
Companies and Portfolios are a part, as of
the close of business on April 13, 2007 or
April 27, 2007, as indicated on Exhibit A
hereto (each, a Closing Date), many of
the Investment Companies and Portfolios
will be reorganized as set forth on
Exhibit A hereto. Additionally, as
indicated on Exhibit A hereto, several the
Investment Companies and Portfolios shall
cease operations following fund
combinations as of the close of business
on April 27, 2007 (the Termination
Date).
On each applicable Closing Date,
(i) each management company identified as
a New Fund shall become the Investment
Company party to the applicable Agreement
and shall assume all of the rights and
obligations under such Agreement of the
corresponding Old Fund with respect to
each applicable Old Portfolio (or, if such
Old Fund has no Old Portfolios, with
respect to the Old Fund itself), (ii) each
such New Portfolio shall be deemed a
Fund within the meaning of the
applicable Agreement and the shares for
such New Portfolio shall be deemed
Shares within the meaning of the
Agreement, (iii) each Old Fund shall cease
to be a party to the applicable Agreement
and shall have no rights or obligations
thereunder, and (iv) each corresponding
Old Portfolio shall cease be deemed to be
a Fund under the applicable Agreement
and shares for such Old Portfolio shall
cease to be Shares within the meaning of
the Agreement.
As of the Termination Date, (i) each
Old Fund indicated on Exhibit A hereto as
terminating operations, or as having all
of its Old Portfolios terminating
operations, shall cease to be deemed the
Investment Company under the applicable
Agreement and shall have no further rights
or obligations under the Agreement by
virtue of all of its Old Portfolios (or,
if such Old Fund has no Old Portfolios,
the Old Fund itself) having ceased
operations in connection with a fund
combination, and (ii) each Old Portfolio
indicated on Exhibit A hereto as
terminating operations shall cease to be
deemed a Fund under the applicable
Agreement and shares for such Old
Portfolio shall cease to be Shares
within the meaning of the Agreement by
virtue of the Old Portfolio having ceased
operations in connection with a fund
combination.
Except to the extent expressly set
forth herein, this letter shall not be
deemed to otherwise amend or modify any
term of any of the Agreements.
Please sign below to evidence your
consent and agreement to the above.
EACH MANAGEMENT
INVESTMENT
COMPANY
IDENTIFIED ON
EXHIBIT A HERETO
AS AN OLD FUND
OR A NEW FUND
By:
Name:
Title:
Consented and Agreed to:
PFS INVESTMENTS INC.
By:
Name:
Title:
Exhibit A
INVESTMENT COMPANIES AND PORTFOLIOS
INVOLVED IN RESTRUCTURINGS
OR FUND COMBINATIONS
Old Fund
Old Portfolio
Restructur
ing, Fund
Combinatio
n or Other
Cessation
of
Operations
New Fund
New Portfolio
Closing
Date or
Termination
Date
(as
applicable)
Xxxx Xxxxx Partners
Aggressive Growth
Fund, Inc. (f/k/a
Xxxxx Xxxxxx
Aggressive Growth
Fund Inc.)
n/a
Restructur
ing
Xxxx Xxxxx Partners
Equity Trust
Xxxx Xxxxx Partners
Aggressive Growth
Fund
4/13/07
Xxxx Xxxxx Partners
Lifestyle Series,
Inc. (f/k/a Xxxxx
Xxxxxx Allocation
Series Inc.)
Xxxx Xxxxx Partners
Lifestyle Allocation
50% (f/k/a Balanced
Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Equity Trust
Xxxx Xxxxx Partners
Lifestyle
Allocation 50%
4/13/07
Xxxx Xxxxx Partners
Lifestyle Allocation
30% (f/k/a
Conservative
Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Equity Trust
Xxxx Xxxxx Partners
Lifestyle
Allocation 30%
4/13/07
Xxxx Xxxxx Partners
Lifestyle Allocation
70% (f/k/a Growth
Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Equity Trust
Xxxx Xxxxx Partners
Lifestyle
Allocation 70%
4/13/07
Xxxx Xxxxx Partners
Lifestyle Allocation
85% (f/k/a High
Growth Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Equity Trust
Xxxx Xxxxx Partners
Lifestyle
Allocation 85%
4/13/07
Xxxx Xxxxx Partners
Lifestyle Allocation
100%
Restructur
ing
Xxxx Xxxxx Partners
Equity Trust
Xxxx Xxxxx Partners
Lifestyle
Allocation 100%
4/13/07
Xxxx Xxxxx Partners
Lifestyle Income Fund
(f/k/a Income
Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Equity Trust
Xxxx Xxxxx Partners
Lifestyle Income
Fund
4/13/07
Xxxx Xxxxx Partners
Variable Lifestyle
Allocation 50% (f/k/a
Select Balanced
Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Variable Equity
Trust
Xxxx Xxxxx Partners
Variable Lifestyle
Allocation 50%
4/27/07
Xxxx Xxxxx Partners
Variable Lifestyle
Allocation 70% (f/k/a
Select Growth
Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Variable Equity
Trust
Xxxx Xxxxx Partners
Variable Lifestyle
Allocation 70%
4/27/07
Xxxx Xxxxx Partners
Variable Lifestyle
Allocation 85% (f/k/a
Select High Growth
Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Variable Equity
Trust
Xxxx Xxxxx Partners
Variable Lifestyle
Allocation 85%
4/27/07
Xxxx Xxxxx Partners
Appreciation Fund,
Inc. (f/k/a Xxxxx
Xxxxxx Appreciation
Fund Inc.)
n/a
Restructur
ing
Xxxx Xxxxx Partners
Equity Trust
Xxxx Xxxxx Partners
Appreciation Fund
4/13/07
Xxxx Xxxxx Partners
California Municipals
Fund, Inc. (f/k/a
Xxxxx Xxxxxx
California Municipals
Fund Inc.)
n/a
Restructur
ing
Xxxx Xxxxx Partners
Income Trust
Xxxx Xxxxx Partners
California
Municipals Fund
4/13/07
Xxxx Xxxxx Partners
Equity Funds (f/k/a
Xxxxx Xxxxxx Equity
Funds)
Xxxx Xxxxx Partners
Social Awareness Fund
(f/k/a Xxxxx Xxxxxx
Social Awareness
Fund)
Restructur
ing
Xxxx Xxxxx Partners
Equity Trust
Xxxx Xxxxx Partners
Social Awareness
Fund
4/13/07
Xxxx Xxxxx Partners
Fundamental Value
Fund, Inc. (f/k/a
Xxxxx Xxxxxx
Fundamental Value
Fund Inc.)
n/a
Restructur
ing
Xxxx Xxxxx Partners
Equity Trust
Xxxx Xxxxx Partners
Fundamental Value
Fund
4/13/07
Xxxx Xxxxx Partners
Income Funds (f/k/a
Xxxxx Xxxxxx Income
Funds)
Xxxx Xxxxx Partners
Diversified Strategic
Income Fund (f/k/a
Xxxxx Xxxxxx
Diversified Strategic
Income Fund)
Restructur
ing
Xxxx Xxxxx Partners
Income Trust
Xxxx Xxxxx Partners
Diversified
Strategic Income
Fund
4/13/07
Xxxx Xxxxx Partners
Capital and Income
Fund (f/k/a SB
Capital and Income
Fund)
Restructur
ing
Xxxx Xxxxx Partners
Equity Trust
Xxxx Xxxxx Partners
Capital and Income
Fund
4/13/07
Xxxx Xxxxx Partners
Investment Funds,
Inc. (f/k/a Xxxxx
Xxxxxx Investment
Funds Inc.)
Xxxx Xxxxx Partners
Investment Grade Bond
Fund (f/k/a Xxxxx
Xxxxxx Investment
Grade Bond Fund)
Restructur
ing
Xxxx Xxxxx Partners
Income Trust
Xxxx Xxxxx Partners
Investment Grade
Bond Fund
4/13/07
Xxxx Xxxxx Partners
Multiple Discipline
Funds All Cap Growth
and Value (f/k/a
Xxxxx Xxxxxx Multiple
Discipline FundsAll
Cap Growth and Value
Fund)
Restructur
ing
Xxxx Xxxxx Partners
Equity Trust
Xxxx Xxxxx Partners
All Cap Fund
4/13/07
Xxxx Xxxxx Partners
Government Securities
Fund (f/k/a Xxxxx
Xxxxxx Government
Securities Fund)
Restructur
ing
Xxxx Xxxxx Partners
Income Trust
Xxxx Xxxxx Partners
Government
Securities Fund
4/13/07
Xxxx Xxxxx Partners
Small Cap Value Fund
(f/k/a Xxxxx Xxxxxx
Small Cap Value Fund)
Restructur
ing
Xxxx Xxxxx Partners
Equity Trust
Xxxx Xxxxx Partners
Small Cap Value
Fund
4/13/07
Xxxx Xxxxx Partners
Investment Series
(f/k/a Xxxxx Xxxxxx
Investment Series)
Xxxx Xxxxx Partners
Dividend Strategy
Fund (f/k/a Xxxxx
Xxxxxx Dividend
Strategy Fund)
Restructur
ing
Xxxx Xxxxx Partners
Equity Trust
Xxxx Xxxxx Partners
Dividend Strategy
Fund
4/13/07
Xxxx Xxxxx Partners
Variable Premier
Selections All Cap
Growth Portfolio
(f/k/a Xxxxx Xxxxxx
Premier Selections
All Cap Growth
Portfolio)
Combinatio
n
(acquired
by Xxxx
Xxxxx
Partners
Variable
Aggressive
Growth
Portfolio)
n/a
n/a
4/27/07
Xxxx Xxxxx Partners
Variable Government
Portfolio (f/k/a SB
Government Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Variable Income
Trust
Xxxx Xxxxx Partners
Variable Government
Portfolio
4/27/07
Xxxx Xxxxx Partners
Variable Dividend
Strategy Portfolio
(f/k/a Xxxxx Xxxxxx
Dividend Strategy
Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Variable Equity
Trust
Xxxx Xxxxx Partners
Variable Dividend
Strategy Portfolio
4/27/07
Xxxx Xxxxx Partners
Investment Trust
(f/k/a Xxxxx Xxxxxx
Investment Trust)
Xxxx Xxxxx Partners
Large Cap Growth Fund
(f/k/a Xxxxx Xxxxxx
Large Capitalization
Growth Fund)
Restructur
ing
Xxxx Xxxxx Partners
Equity Trust
Xxxx Xxxxx Partners
Large Cap Growth
Fund
4/13/07
Xxxx Xxxxx Partners
Mid Cap Core Fund
(f/k/a Xxxxx Xxxxxx
Mid Cap Core Fund)
Restructur
ing
Xxxx Xxxxx Partners
Equity Trust
Xxxx Xxxxx Partners
Mid Cap Core Fund
4/13/07
Xxxx Xxxxx Partners
Managed Municipals
Fund, Inc. (f/k/a
Xxxxx Xxxxxx Managed
Municipals Fund Inc.)
n/a
Restructur
ing
Xxxx Xxxxx Partners
Income Trust
Xxxx Xxxxx Partners
Managed Municipals
Fund
4/13/07
Xxxxx Xxxxxx Money
Funds, Inc.
Cash Portfolio
Restructur
ing
Xxxx Xxxxx Partners
Money Market Trust
Western Asset Money
Market Fund
4/13/07
Government Portfolio
Restructur
ing
Xxxx Xxxxx Partners
Money Market Trust
Western Asset
Government Money
Market Fund
4/13/07
Xxxx Xxxxx Partners
Variable Portfolios
IV (f/k/a Xxxxx
Xxxxxx Multiple
Discipline Trust)
Xxxx Xxxxx Partners
Variable Multiple
Discipline Portfolio
All Cap Growth and
Value (f/k/a Multiple
Discipline Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Variable Equity
Trust
Xxxx Xxxxx Partners
Variable Multiple
Discipline
PortfolioAll Cap
Growth and Value
4/27/07
Xxxx Xxxxx Partners
Variable Multiple
Discipline Portfolio
Large Cap Growth and
Value (f/k/a Multiple
Discipline Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Variable Equity
Trust
Xxxx Xxxxx Partners
Variable Multiple
Discipline
PortfolioLarge Cap
Growth and Value
4/27/07
Xxxx Xxxxx Partners
Variable Multiple
Discipline Portfolio
Global All Cap Growth
and Value (f/k/a
Multiple Discipline
Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Variable Equity
Trust
Xxxx Xxxxx Partners
Variable Multiple
Discipline
PortfolioGlobal
All Cap Growth and
Value
4/27/07
Xxxx Xxxxx Partners
Variable Multiple
Discipline Portfolio
Balanced All Cap
Growth and Value
(f/k/a Multiple
Discipline Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Variable Equity
Trust
Xxxx Xxxxx Partners
Variable Capital
and Income
Portfolio
4/27/07
Xxxxx Xxxxxx
Municipal Money
Market Fund, Inc.
n/a
Restructur
ing
Xxxx Xxxxx Partners
Money Market Trust
Western Asset
Municipal Money
Market Fund
4/13/07
Xxxx Xxxxx Partners
Municipal Funds
(f/k/a Xxxxx Xxxxxx
Xxxx Funds)
Xxxx Xxxxx Partners
New York Municipals
Fund (f/k/a New York
Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Income Trust
Xxxx Xxxxx Partners
New York Municipals
Fund
4/13/07
Xxxx Xxxxx Partners
Sector Series, Inc.
(f/k/a Xxxxx Xxxxxx
Sector Series Inc.)
Xxxx Xxxxx Partners
Financial Services
Fund (f/k/a Xxxxx
Xxxxxx Financial
Services Fund)
Restructur
ing
Xxxx Xxxxx Partners
Equity Trust
Xxxx Xxxxx Partners
Financial Services
Fund
4/13/07
Xxxx Xxxxx Partners
World Funds, Inc.
(f/k/a Xxxxx Xxxxxx
World Funds)
Xxxx Xxxxx Partners
International All Cap
Opportunity Fund
(f/k/a International
All Cap Growth
Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Equity Trust
Xxxx Xxxxx Partners
International All
Cap Opportunity
Fund
4/13/07
Xxxx Xxxxx Partners
Variable Portfolios
II (f/k/a Greenwich
Street Series Fund)
Xxxx Xxxxx Partners
Variable Appreciation
Portfolio (f/k/a
Appreciation
Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Variable Equity
Trust
Xxxx Xxxxx Partners
Variable
Appreciation
Portfolio
4/27/07
Xxxx Xxxxx Partners
Variable Capital and
Income Portfolio
(f/k/a Capital and
Income Portfolio)
Combinatio
n
(acquired
by Xxxx
Xxxxx
Partners
Variable
Multiple
Discipline
Portfolio
Balanced
All Cap
Growth and
Value)
n/a
n/a
4/27/07
Xxxx Xxxxx Partners
Variable Aggressive
Growth Portfolio
(f/k/a Salomon
Brothers Variable
Aggressive Growth
Fund)
Combinatio
n
(acquired
by Xxxx
Xxxxx
Partners
Variable
Aggressive
Growth
Portfolio)
n/a
n/a
4/27/07
Xxxx Xxxxx Partners
Variable Equity Index
Portfolio (f/k/a
Equity Index
Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Variable Equity
Trust
Xxxx Xxxxx Partners
Variable Equity
Index Portfolio
4/27/07
Xxxx Xxxxx Partners
Variable Growth and
Income Portfolio
(f/k/a Salomon
Brothers Variable
Growth & Income Fund)
Combinatio
n
(acquired
by Xxxx
Xxxxx
Partners
Variable
Appreciati
on
Portfolio)
n/a
n/a
4/27/07
Xxxx Xxxxx Partners
Variable Fundamental
Value Portfolio
(f/k/a Fundamental
Value Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Variable Equity
Trust
Xxxx Xxxxx Partners
Variable
Fundamental Value
Portfolio
4/27/07
Xxxx Xxxxx Partners
Variable Portfolios
III, Inc. (f/k/a
Travelers Series Fund
Inc. )
Xxxx Xxxxx Partners
Variable High Income
Portfolio (f/k/a
Xxxxx Xxxxxx High
Income Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Variable Income
Trust
Xxxx Xxxxx Partners
Variable High
Income Portfolio
4/27/07
Xxxx Xxxxx Partners
Variable
International All Cap
Growth Portfolio
(f/k/a Xxxxx Xxxxxx
International All Cap
Growth Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Variable Equity
Trust
Xxxx Xxxxx Partners
Variable
International All
Cap Opportunity
Portfolio
4/27/07
Xxxx Xxxxx Partners
Variable Large Cap
Growth Portfolio
(f/k/a Xxxxx Xxxxxx
Large Capitalization
Growth Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Variable Equity
Trust
Xxxx Xxxxx Partners
Variable Large Cap
Growth Portfolio
4/27/07
Xxxx Xxxxx Partners
Variable Large Cap
Value Portfolio
(f/k/a Xxxxx Xxxxxx
Large Cap Value
Portfolio)
Combinatio
n
(acquired
by Xxxx
Xxxxx
Partners
Variable
Investors
Portfolio)
n/a
n/a
4/27/07
Xxxx Xxxxx Partners
Variable Mid Cap Core
Portfolio (f/k/a
Xxxxx Xxxxxx Mid Cap
Core Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Variable Equity
Trust
Xxxx Xxxxx Partners
Variable Mid Cap
Core Portfolio
4/27/07
Xxxx Xxxxx Partners
Variable Money Market
Portfolio (f/k/a
Xxxxx Xxxxxx Money
Market Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Variable Income
Trust
Xxxx Xxxxx Partners
Variable Money
Market Portfolio
4/27/07
Xxxx Xxxxx Partners
Variable Social
Awareness Stock
Portfolio (f/k/a
Social Awareness
Stock Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Variable Equity
Trust
Xxxx Xxxxx Partners
Variable Social
Awareness Portfolio
4/27/07
Xxxx Xxxxx Partners
Variable Adjustable
Rate Income Portfolio
(f/k/a SB Adjustable
Rate Income
Portfolio)
Restructur
ing
Xxxx Xxxxx Partners
Variable Income
Trust
Xxxx Xxxxx Partners
Variable Adjustable
Rate Income
Portfolio
4/27/07
Xxxx Xxxxx Partners
Series Funds, Inc.
(f/k/a Salomon
Brothers Series Funds
Inc.)
Xxxx Xxxxx Partners
Small Cap Growth Fund
I (f/k/a Salomon
Brothers Small Cap
Growth Fund)
Restructur
ing
Xxxx Xxxxx Partners
Equity Trust
Xxxx Xxxxx Partners
Small Cap Growth
Fund
4/13/07
Xxxx Xxxxx Partners
Variable Portfolios
I, Inc. (f/k/a
Salomon Brothers
Variable Series Funds
Inc.)
Xxxx Xxxxx Partners
Variable Small Cap
Growth Portfolio
(f/k/a Salomon
Brothers Variable
Small Cap Growth
Fund)
Restructur
ing
Xxxx Xxxxx Partners
Variable Equity
Trust
Xxxx Xxxxx Partners
Variable Small Cap
Growth Portfolio
4/27/07
Xxxx Xxxxx Partners
Trust II (f/k/a Xxxxx
Xxxxxx Trust II)
Xxxx Xxxxx Partners
Global Equity Fund
(f/k/a Xxxxx Xxxxxx
International Large
Cap Fund)
Restructur
ing
Xxxx Xxxxx Partners
Equity Trust
Xxxx Xxxxx Partners
Global Equity Fund
4/13/07
Xxxx Xxxxx Partners
Variable Portfolios V
(f/k/a Variable
Annuity Portfolios)
Xxxx Xxxxx Partners
Variable Small Cap
Growth Opportunities
Portfolio (f/k/a
Xxxxx Xxxxxx Small
Cap Growth
Opportunities
Portfolio)
Combinatio
n
(acquired
by Xxxx
Xxxxx
Partners
Variable
Small Cap
Growth
Portfolio)
n/a
n/a
4/27/07
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DCiManage/9332069.1
DCiManage/9332069.1
