FORM OF
DISTRIBUTION AGREEMENT
XXXXXXXXX XXXXXX INSTITUTIONAL LIQUIDITY SERIES
TRUST CLASS
This Agreement is made as of __________, 2004, between Xxxxxxxxx Xxxxxx
Institutional Liquidity Series, a Delaware statutory trust ("Trust"), and
Xxxxxxxxx Xxxxxx Management Inc., a New York corporation (the "Distributor"), on
behalf of the Trust Class of the Trust.
WHEREAS, the Trust is registered under the Investment Company Act of
1940, as amended ("1940 Act"), as an open-end, diversified management investment
company and has established several separate series of shares ("Series"), with
each Series having one or more classes and with each Series having its own
assets and investment policies; and
WHEREAS, the Trust desires to retain the Distributor to furnish
distribution services to the Trust Class of each Series listed in Schedule A
attached hereto, and to the Trust Class of such other Series of the Trust
hereinafter established as agreed to from time to time by the parties, evidenced
by an addendum to Schedule A (hereinafter "Series" shall refer to each Series
which is subject to this Agreement and all agreements and actions described
herein to be made or taken by a Series shall be made or taken by the Trust on
behalf of the Series), and the Distributor is willing to furnish such services,
NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, the parties agree as follows:
1. The Trust hereby appoints the Distributor as agent to sell the
shares of beneficial interest of the Trust Class of each Series (the "Shares")
and the Distributor hereby accepts such appointment. All sales by the
Distributor shall be expressly subject to acceptance by the Trust, acting on
behalf of the Series. The Trust may suspend sales of the Shares of any one or
more Series at any time, and may resume sales at any later time.
2. (a) The Distributor agrees that (i) all Shares sold by the
Distributor shall be sold at the net asset value ("NAV") thereof as described in
Section 3 hereof, and (ii) the Series shall receive 100% of such NAV.
(b) The Distributor may enter into agreements, in form and substance
satisfactory to the Trust, with dealers selected by the Distributor, providing
for the sale to such dealers and resale by such dealers of Shares at their NAV.
(c) The Distributor can use any of the officers and employees of
Xxxxxxxxx Xxxxxx, LLC to provide any of the services or reports required under
this Agreement.
3. The Trust agrees to supply to the Distributor, promptly after the
time or times at which NAV is determined, on each day on which the New York
Stock Exchange is open for unrestricted trading and on such other days as the
Board of Trustees of the Trust ("Trustees") may from time to time determine
(each such day being hereinafter called a "business day"), a statement of the
NAV of each Series having been determined in the manner set forth in the
then-current Prospectus and Statement of Additional Information ("SAI") of the
Trust Class of each Series. Each determination of NAV shall take effect as of
such time or times on each business day as set forth in the then-current
Prospectus of the Trust Class of each Series.
4. Upon receipt by the Trust at its principal place of business of a
written order from the Distributor, together with delivery instructions, the
Trust shall, if it elects to accept such order, as promptly as practicable,
cause the Shares purchased by such order to be delivered in such amounts and in
such names as the Distributor shall specify, against payment therefor in such
manner as may be acceptable to the Trust. The Trust may, in its discretion,
refuse to accept any order for the purchase of Shares that the Distributor may
tender to it.
5. (a) All sales literature and advertisements used by the Distributor
in connection with sales of Shares shall be subject to approval by the Trust.
The Trust authorizes the Distributor, in connection with the sale or arranging
for the sale of Shares of any Series, to provide only such information and to
make only such statements or representations as are contained in the Series's
then-current Prospectus and SAI of the Trust Class or in such financial and
other statements furnished to the Distributor pursuant to the next paragraph or
as may properly be included in sales literature or advertisements in accordance
with the provisions of the Securities Act of 1933, as amended (the "1933 Act"),
the 1940 Act and applicable rules of self-regulatory organizations. Neither the
Trust nor any Series shall be responsible in any way for any information
provided or statements or representations made by the Distributor or its
representatives or agents other than the information, statements and
representations described in the preceding sentence.
(b) Each Series shall keep the Distributor fully informed with
regard to its affairs, shall furnish the Distributor with a certified copy of
all of its financial statements and a signed copy of each report prepared for it
by its independent auditors, and shall cooperate fully in the efforts of the
Distributor to negotiate and sell Shares of such Series and in the Distributor's
performance of all its duties under this Agreement.
6. The Distributor, as agent of each Series and for the account and
risk of each Series, is authorized, subject to the direction of the Trust, to
redeem outstanding Shares of such Series when properly tendered by shareholders
pursuant to the redemption right granted to such Series's shareholders by the
Trust Instrument of the Trust, as from time to time in effect, at a redemption
price equal to the NAV per Share of such Series next determined after proper
tender and acceptance. The Trust has delivered to the Distributor a copy of the
Trust's Trust Instrument as currently in effect and agrees to deliver to the
Distributor any amendments thereto promptly.
7. The Distributor shall assume and pay or reimburse each Series for
the following expenses of such Series: (i) costs of printing and distributing
reports, prospectuses and SAIs for other than existing shareholders used in
connection with the sale or offering of the Series' Shares; (ii) costs of
preparing, printing and distributing all advertising and sales literature
relating to such Series printed at the instruction of the Distributor; and (iii)
counsel fees and expenses in connection with the foregoing. The Distributor
shall pay all its own costs and expenses connected with the sale of Shares.
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8. Each Series shall maintain a currently effective Registration
Statement on Form N-1A with respect to the Shares of such Series and shall file
with the Securities and Exchange Commission ("SEC") such reports and other
documents as may be required under the 1933 Act and the 1940 Act or by the rules
and regulations of the SEC thereunder.
Each Series represents and warrants that the Registration Statement,
post-effective amendments, Prospectus and SAI (excluding statements relating to
the Distributor and the services it provides that are based upon written
information furnished by the Distributor expressly for inclusion therein) of
such Series shall not contain any untrue statement of material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein not misleading, and that all statements or information
furnished to the Distributor, pursuant to Section 5(b) hereof, shall be true and
correct in all material respects.
9. (a) This Agreement, as amended, shall become effective on the date
first written above and shall remain in full force and effect until ________,
2006 and may be continued from year to year thereafter; PROVIDED, that such
continuance shall be specifically approved each year by the Trustees or by a
majority of the outstanding voting securities of the Trust Class of the Series,
and in either case, also by a majority of the Trustees who are not interested
persons of the Trust or the Distributor ("Disinterested Trustees"). This
Agreement may be amended as to any Series with the approval of the Trustees or
of a majority of the outstanding voting securities of the Trust Class of such
Series; PROVIDED, that in either case, such amendment also shall be approved by
a majority of the Disinterested Trustees.
(b) Either party may terminate this Agreement without the payment
of any penalty, upon not more than sixty days' nor less than thirty days'
written notice delivered personally or mailed by registered mail, postage
prepaid, to the other party; PROVIDED, that in the case of termination by any
Series, such action shall have been authorized (i) by resolution of the
Trustees, or (ii) by vote of a majority of the outstanding voting securities of
the Trust Class of such Series, or (iii) by written consent of a majority of the
Disinterested Trustees.
(c) This Agreement shall automatically terminate if it is assigned
by the Distributor.
(d) Any question of interpretation of any term or provision of
this Agreement having a counterpart in or otherwise derived from a term or
provision of the 1940 Act shall be resolved by reference to such term or
provision of the 1940 Act and to interpretation thereof, if any, by the United
States courts or, in the absence of any controlling decision of any such court,
by rules, regulations or orders of the SEC validly issued pursuant to the 1940
Act. Specifically, the terms "interested persons," "assignment" and "vote of a
majority of the outstanding voting securities," as used in this Agreement, shall
have the meanings assigned to them by Section 2(a) of the 1940 Act. In addition,
when the effect of a requirement of the 1940 Act reflected in any provision of
this Agreement is modified, interpreted or relaxed by a rule, regulation or
order of the SEC, whether of special or of general application, such provision
shall be deemed to incorporate the effect of such rule, regulation or order. The
Trust and the Distributor may from time to time agree on such provisions
interpreting or clarifying the provisions of this Agreement as, in their joint
opinion, are consistent with the general tenor of this Agreement and with the
specific provisions of this Section 9(d). Any such interpretations or
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clarifications shall be in writing signed by the parties and annexed hereto, but
no such interpretation or clarification shall be effective if in contravention
of any applicable federal or state law or regulations, and no such
interpretation or clarification shall be deemed to be an amendment of this
Agreement.
No term or provision of this Agreement shall be construed to require the
Distributor to provide distribution services to any series of the Trust other
than the Series, or to require Trust Class or any Series to pay any compensation
or expenses that are properly allocable, in a manner approved by the Trustees,
to a class or series of the Trust other than Trust Class or such Series.
(e) This Agreement is made and to be principally performed in the
State of New York, and except insofar as the 1940 Act or other federal laws and
regulations may be controlling, this Agreement shall be governed by, and
construed and enforced in accordance with, the internal laws of the State of New
York.
(f) This Agreement is made by the Trust solely with respect to the
Series, and the obligations created hereby with respect to Trust Class of one
Series bind only assets belonging to Trust Class of that Series and are not
binding on any other series of the Trust.
10. The Distributor or one of its affiliates may from time to time deem
it desirable to offer to the list of shareholders of each Series the shares of
other mutual funds for which it acts as Distributor, including other series of
the Trust or other products or services; however, any such use of the list of
shareholders of any Series shall be made subject to such terms and conditions,
if any, as shall be approved by a majority of the Disinterested Trustees.
11. The Distributor shall look only to the assets of Trust Class of a
Series for the performance of this Agreement by the Trust on behalf of such
Series, and neither the shareholders, the Trustees nor any of the Trust's
officers, employees or agents, whether past, present or future, shall be
personally liable therefor.
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IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed by their duly authorized officers and under their respective
seals.
XXXXXXXXX XXXXXX INSTITUTIONAL LIQUIDITY SERIES
__________________________________________________
By:
Title:
XXXXXXXXX XXXXXX MANAGEMENT INC.
__________________________________________________
By:
Title:
Date: _________, 2004
XXXXXXXXX XXXXXX INSTITUTIONAL LIQUIDITY SERIES
TRUST CLASS
DISTRIBUTION AGREEMENT
SCHEDULE A
The Series currently subject to this Agreement are as follows:
Xxxxxxxxx Xxxxxx Institutional Cash Fund
Xxxxxxxxx Xxxxxx Prime Fund
Date: _________, 2004
