Exhibit (7)(b)
UNDERWRITING AGREEMENT
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This UNDERWRITING AGREEMENT ("Agreement"), made this 18th day of
February, 2005, by and between Regions Xxxxxx Xxxxxx Select Funds, a
Massachusetts business trust (the "Trust"), on behalf of its series listed on
Schedule A hereto (each a "Fund" and collectively the "Funds'), and Xxxxxx
Xxxxxx & Company, Inc., a Tennessee corporation (the "Distributor"):
WHEREAS, the Trust is registered with the Securities and Exchange
Commission as an open-end, management investment company under the Investment
Company Act of 1940, as amended (the "1940 Act") and has registered its shares
of beneficial interest for sale to the public under the Securities Act of 1933,
as amended (the "1933 Act"), and has qualified its shares in accordance with the
provisions of various state securities laws; and
WHEREAS, the Trust intends to offer one or more classes (the "Classes")
of shares (the "Shares") of the Funds for public sale;
WHEREAS, the Trust has adopted a distribution plan pursuant to Rule
12b-1 for the Class A shares of certain of the Funds; and
WHEREAS, the Trust wishes to retain the Distributor as the principal
underwriter in connection with the offering and sale of the Shares of each Fund
as now exists and as may hereafter may be established and to furnish certain
other services to the Trust as specified in this Agreement; and
WHEREAS, this Agreement has been approved by a vote of the Board of
Trustees of the Trust (the "Board") and certain disinterested trustees in
conformity with paragraph (b)(2) of Rule 12b-1 under the 1940 Act, as well as by
the disinterested trustees in conformity with Section 15(c) of the 1940 Act; and
WHEREAS, the Distributor is willing to act as principal underwriter and
to furnish such services on the terms and conditions hereinafter set forth;
NOW, THEREFORE, in consideration of the promises and mutual covenants
herein contained, it is agreed as follows:
1. The Trust hereby appoints the Distributor as principal
underwriter in connection with the offering and sale of the Shares, including
all Classes now or hereafter created, on its behalf during the term of this
Agreement. The Trust authorizes the Distributor, as exclusive agent for the
Trust, subject to applicable federal and state law and the Amended and Restated
Declaration of Trust (the "Declaration of Trust") and By-Laws of the Trust: (a)
to promote the Trust; (b) to solicit orders for the purchase of the Shares
subject to such terms and conditions as the Trust may specify; and (c) to accept
orders for the purchase of the Shares on behalf of the applicable Fund. The
Distributor shall comply with all applicable federal and state laws and offer
the Shares on an agency or "best efforts" basis under which the Trust shall
issue only such Shares as are actually sold.
2. The public offering price of the Shares shall be the net asset
value per share (as determined by the Trust) of the outstanding Shares, plus the
applicable sales charge, if any, determined as set forth in the Registration
Statement. The Trust shall furnish the Distributor with a statement of each
computation of net asset value and of the details entering into such
computation.
3. The sales charge, if any, set forth in the Trust's Registration
Statement shall constitute compensation of the Distributor. As additional
compensation for the services performed and the expenses assumed by the
Distributor under this Agreement, including, but not limited to, any commissions
paid for sales of the Shares, the Distributor shall receive from each Fund, as
promptly as possible after the last day of each month, a distribution fee,
calculated daily pursuant to a distribution plan. The first payment of the
distribution fees shall be made as promptly as possible at the end of the month
next succeeding the effective date of this Agreement, and shall include a full
payment of the fees due the Distributor for all distribution services prior to
that date. If this Agreement is terminated as of any date not the last day of a
month, such fees shall be paid as promptly as possible after such date of
termination, shall be based on the average daily net assets of each Fund in that
period from the beginning of such month to such date of termination, and shall
be that proportion of such average daily net assets as the number of business
days in such period bears to the number of business days in such month. The
average daily net assets of each Fund shall in all cases be based only on
business days and be computed as of the time of the regular close of business of
the New York Stock Exchange, or such other time as may be determined by the
Board. Each such payment shall be accompanied by a report of the Trust prepared
either by the Trust or by a reputable firm of independent accountants that shall
show the amount properly payable to the Distributor under this Agreement and the
detailed computation thereof.
4. As used in this Agreement, the term "Registration Statement"
shall mean the registration statement relating to the Funds most recently filed
by the Trust with the Securities and Exchange Commission and effective under the
1933 Act, as such Registration Statement is amended at the time in effect, and
the terms "Prospectus" and "Statement of Additional Information" shall mean the
forms of prospectus and statement of additional information, respectively, filed
by the Trust as part of the Registration Statement or as definitive versions
thereof.
5. The Distributor, at no expense to the Trust, shall print and
distribute to prospective investors, the Prospectus and Statement of Additional
Information, and may print and distribute such other sales literature, reports,
forms and advertisements in connection with the sale of the Shares as comply
with the applicable provisions of federal and state law. In connection with such
sales and offers of sale, the Distributor shall give only such information and
make only such statements or representations as are contained in the Prospectus
or Statement of Additional Information or in information furnished in writing to
the Distributor by the Trust, and the Trust shall not be responsible in any way
for any other information, statements or representations given or made by the
Distributor or its representatives or agents. Except as specifically provided in
this Agreement, the Trust shall bear none of the expenses of the Distributor in
connection with its offer and sale of the Shares.
6. The Trust agrees at its own expense to register the Shares under
the 1933 Act, as amended, and under the securities laws of such states and
jurisdictions as the Distributor of the Trust shall agree, and to prepare and
file from time to time such Prospectuses and Statements of Additional
Information, amendments, reports and other documents as may be necessary to
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maintain the Registration Statement. The Trust shall bear all expenses related
to preparing and typesetting such Prospectuses and other materials required by
law and such other expenses, including printing and mailing expenses, related to
the Trust's communications with persons who are shareholders of the Trust.
7. The Trust agrees to indemnify, defend and hold the Distributor,
its several officers and directors, and any person who controls the Distributor
within the meaning of Section 15 of the 1933 Act, free and harmless from and
against any and all claims, demands, liabilities and expenses (including the
cost of investigating or defending such claims, demands or liabilities and any
counsel fees incurred in connection therewith) which the Distributor, its
officers or directors, or any such controlling person may incur, under the 1933
Act or under common law or otherwise, arising out of or based upon any alleged
untrue statement of a material fact contained in the Registration Statement or
arising out of or based upon any alleged omission to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading, provided, however, that the Trust shall not indemnify or defend such
persons or hold them harmless with respect to any claims, demands, or
liabilities based on information provided to the Trust by the Distributor; and
provided further that this indemnification provision shall not inure to the
benefit of any person who is an officer or director of the Trust or who controls
the Trust within the meaning of Section 15 of the 1933 Act, as amended, unless a
court of competent jurisdiction shall determine, or it shall have been
determined by controlling precedent, that such result would not be against
public policy as expressed in the 1933 Act, as amended, and further provided
that in no event shall anything contained in this Agreement be construed so as
to protect the Distributor against any liability to the Trust or its
shareholders to which the Distributor would otherwise be subject by reason of
willful misfeasance, bad faith, or gross negligence in the performance of its
duties, or by reason of its reckless disregard of its obligations and duties
under this Agreement.
8. The Distributor agrees to indemnify, defend and hold the Trust,
its several officers and directors, and any person who controls the Trust within
the meaning of Section 15 of the 1933 Act, free and harmless from and against
any and all claims, demands, liabilities and expenses (including the cost of
investigating or defending such claims, demands or liabilities and any counsel
fees incurred in connection therewith) which the Trust, its officers or
directors, or any such controlling person may incur, under the 1933 Act or under
common law or otherwise, arising out of or based upon any alleged untrue
statement of a material fact contained in information furnished in writing by
the Distributor to the Trust for use in the Registration Statement or arising
out of or based upon any alleged omission by the Distributor to state a material
fact in connection with such information required to be stated in the
Registration Statement or necessary to make such information not misleading.
9. Xxxxxx Xxxxxx is hereby put on notice of the limitation of
liability as set forth in Article XI of the Declaration of Trust and agrees that
the obligations assumed by the Trust pursuant to this Agreement shall be limited
in any case to the Trust and its assets and Xxxxxx Xxxxxx shall not seek
satisfaction of any such obligation from the shareholders of the Trust, the
Trustees, officers, employees or agents of the Trust, or any of them.
10. The Trust reserves the right at any time to withdraw any or all
offerings of the Shares by written notice to the Distributor at its principal
office.
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11. The Trust shall not issue certificates representing the Shares
unless requested by a shareholder. If such request is transmitted through the
Distributor, the Trust will cause certificates evidencing the Shares owned to be
issued in such names and denominations as the Distributor shall from time to
time direct, provided that no certificates shall be issued for fractional
Shares.
12. The Distributor may at its sole discretion repurchase Shares
offered for sale by the shareholders. Repurchase of Shares by the Distributor
shall be at the net asset value next determined after a repurchase order has
been received. The Distributor will receive no commission or other remuneration
for repurchasing Shares other than the fees set forth in paragraph 3 hereof. At
the end of each business day, the Distributor shall notify by telex or in
writing to the Trust and Regions Bank, the Trust's custodian, of the orders for
repurchase of Shares received by the Distributor since the last such report, the
amount to be paid for such Shares, and the identity of the shareholders offering
Shares for repurchase. Upon such notice, the Trust shall pay the Distributor
such amounts as are required by the Distributor for the repurchase of such
Shares in cash or in the form of a credit against moneys due the Trust from the
Distributor as proceeds from the sale of Shares. The Trust reserves the right to
suspend such repurchase right upon written notice to the Distributor. The
Distributor further agrees to act as agent for the Trust to receive and transmit
promptly to the Trust's transfer agent shareholder requests for redemption of
Shares.
13. The Distributor is an independent contractor and shall be an
agent for the Trust only with respect to the sale and redemption of Shares.
14. The Distributor represents and warrants that it is a
broker-dealer duly registered under the Securities Act of 1934 and applicable
state securities laws, that it is a member of the National Association of
Securities Dealers and has all licenses required to engage in the business it
undertakes in this Agreement. Additionally the Distributor represents and
warrants that it will notify the Trust promptly if any such registration,
membership or license is suspended, revoked, withdrawn or allowed to lapse.
15. The services of the Distributor to the Trust under this Agreement
are not to be deemed exclusive, and the Distributor shall be free to render
similar services or other services to others so long as its services hereunder
are not impaired thereby.
16. The Distributor shall prepare reports for the Board on a
quarterly basis showing such information concerning expenditures related to this
Agreement as from time to time shall be reasonably requested by the Board of
Trustees.
17. As used in this Agreement, the terms "securities" and "net
assets" shall have the meanings ascribed to them in the Declaration of Trust.
18. This Agreement will remain in effect for one year from the date
of its execution and from year to year thereafter, provided that such
continuance is specifically approved, at least annually: (i) by the Board or by
vote of a majority of the outstanding voting securities of the Trust, (ii) by a
vote of a majority of those members of the Board who are not parties to this
Agreement or interested persons of any such party, cast in person at a meeting
called for the purpose of voting on such approval; and (iii) by vote of a
majority of those members of the Board who are not interested persons of the
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Trust and who have no direct or indirect financial interest in this Agreement or
in the Plan (the "Independent Trustees"). Notwithstanding the foregoing, this
Agreement may be terminated at any time by the Trust without penalty, on 60
days' written notice to the Distributor, by vote of the Board, by vote of a
majority of the Independent Trustees, or by a vote of a majority of the
outstanding voting securities of the Trust. This Agreement may be terminated by
the Distributor at any time, without the payment of any penalty, upon 60 days'
written notice to the Trust. This Agreement will automatically and immediately
terminate in the event of its assignment. As used in this Agreement, the terms
"majority of the outstanding voting securities," "interested person" and
"assignment" shall have the same meanings ascribed to them in the 1940 Act.
19. It is expressly agreed that the obligations of the Trust
hereunder shall not be binding personally upon any of the Board, shareholders,
nominees, officers, agents or employees of the Trust, but shall bind only the
trust property of the Trust. The execution and delivery of this Agreement have
been authorized by the Board, and this Agreement has been signed and delivered
by an authorized officer of the Trust, acting as such, and neither such
authorization by the Board nor such execution and delivery by such officer shall
be deemed to have been made by any of them individually or to impose any
liability on any of them personally, but shall bind only the trust property of
the Trust as provided in the Trust's Declaration of Trust.
20. This Agreement shall be construed in accordance with and governed
by the laws of the Commonwealth of Massachusetts.
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IN WITNESS WHEREOF, the parties hereto caused this Agreement to be
executed by their officers thereunto duly authorized as of the date first
written above.
REGIONS XXXXXX XXXXXX SELECT FUNDS
By: /s/ Xxxxxxx X. Xxxxxxx
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Name: Xxxxxxx X. Xxxxxxx
Title: Secretary and Treasurer
XXXXXX XXXXXX & COMPANY, INC.
By: /s/ Xxxxxxx X. Xxxxxxx
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Name: Xxxxxxx X. Xxxxxxx
Title: Managing Director
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SCHEDULE A
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Regions Xxxxxx Xxxxxx Select LEADER Growth
Equity Fund
Regions Xxxxxx Xxxxxx Select LEADER Growth &
Income Fund
Regions Xxxxxx Xxxxxx Select LEADER Balanced
Fund
Regions Xxxxxx Xxxxxx Select LEADER Tax-Exempt
Bond Fund
Regions Xxxxxx Xxxxxx Select LEADER
Intermediate Bond Fund
Regions Xxxxxx Xxxxxx Select LEADER Tax-Exempt
Money Market Fund
Regions Xxxxxx Xxxxxx Select LEADER Money
Market Fund
