EXHIBIT 99.(e)(1)
DISTRIBUTION AGREEMENT
Distribution Agreement made this 28th day of February, 2000, by and
between The State Street Institutional Investment Trust, a Massachusetts trust
(the "Trust"), and ALPS Mutual Funds Services, Inc., a Colorado corporation (the
"Distributor").
WHEREAS, the Trust is a registered open-end management investment
company organized as a series trust offering a number of portfolios of
securities (each a "Fund" and collectively the "Funds"), each investing
primarily in interests of a portfolio of the State Street Master Trust, having
filed with the Securities and Exchange Commission (the "Commission") a
registration statement on Form N-1A under the Securities Act of 1933, as amended
(the "1933 Act"), and the Investment Company Act of 1940, as amended;
WHEREAS, the Trust desires to retain the services of the Distributor in
connection with the promotion and distribution of the shares of each Fund (the
"Shares");
WHEREAS, the Board of Trustees of the Trust has adopted a plan of
distribution (the "12b-1 Plan") pursuant to Rule 12b-1 under the 1940 Act with
respect to each Fund and may make payments to the Distributor pursuant to such
12b-1 Plan, subject to and in accordance with the terms and conditions thereof
and any related agreements;
WHEREAS, the Distributor is a registered broker-dealer under the
Securities Exchange Act of 1934, as amended (the "1934 Act") and a member of the
National Association of Securities Dealers ("NASD"); and
WHEREAS, the Distributor desires to provide such services to the Trust.
NOW, THEREFORE, in consideration of the mutual promises and
undertakings herein contained, the parties agree as follows:
1. Appointment. The Trust hereby appoints the Distributor as the exclusive
distributor for Shares of each Fund listed in Annex I hereto, as the same may be
amended by the parties from time to time, on the terms and for the period set
forth in this Agreement and subject to the registration requirements of the 1933
Act and of the laws governing the sale of securities in the various states, and
the Distributor hereby accepts such appointment and agrees to act in such
capacity hereunder.
2. Definitions. Wherever they are used herein, the following terms have
the following respective meanings:
a. "1940 Act" means the Investment Company Act of 1940 and the rules
and regulations thereunder as amended from time to time;
b. "Prospectus" means the Prospectus and Statement of Additional
Information constituting parts of the Registration Statement of the Trust under
the 1933 Act and the 1940 Act as such Prospectus and Statement of Additional
Information may be amended or supplemented and filed with the Commission from
time to time;
c. "Registration Statement" means the registration statement most
recently filed from time to time by the Trust with the Commission and effective
under the 1933 Act and the 1940 Act, as such registration statement is amended
by any amendments thereto at the time in effect;
d. All capitalized terms used but not defined in this Agreement shall
have the meanings ascribed to such terms in the Registration Statement and the
Prospectus.
3. Duties of the Distributor.
(a) The Trust grants to the Distributor the right to sell the Shares as
agent on behalf of each Fund, during the term of this Agreement, subject to the
registration requirements of the 1933 Act and 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 each Fund, the Shares covered by the
registration statement, prospectus and statement of additional information for
the Trust then in effect under the 1933 Act and the 0000 Xxx.
(b) The Distributor agrees to act as agent of the Trust with respect to
the continuous distribution of Shares of each Fund as set forth in the
Registration Statement and in accordance with the provisions thereof. The
Distributor further agrees as follows: (a) the Distributor shall generate and
transmit confirmations of Share purchase order acceptances to the purchaser; (b)
the Distributor shall deliver copies of the prospectus, included in the
Registration Statement, to purchasers of such Shares and upon request the
Statement of Additional Information; and (c) the Distributor shall maintain
telephonic, facsimile and/or access to direct computer communications links with
the Transfer Agent.
(c) The rights granted to the Distributor shall be nonexclusive in that
the Trust reserves the right to sell Shares to investors on applications
received and accepted by the Trust.
(d) The Distributor agrees to administer the Rule 12b-1 Plan on behalf
of the Trust. The Distributor shall, at its own expense, set up and maintain a
system of recording and payments for fees and reimbursement of expenses
disseminated pursuant to this Agreement and any other related agreements under
the Funds' Rule 12b-1 Plan and shall, pursuant to the 1940 Act, report such
payment activity under the Rule 12b-1 Plan to the Trust at least quarterly.
(e) All activities by the Distributor and its agents and employees
which are primarily intended to result in the sale of Shares shall comply with
the Registration Statement and Prospectus, the instructions of the Board of
Trustees of the Trust and all applicable laws, rules and regulations including,
without limitation, all rules and regulations made or adopted pursuant to the
1940 Act by the Commission or any securities association registered under the
1934 Act, including the NASD.
(f) Except as otherwise noted in the Registration Statement and
Prospectus, the offering price for all Shares will be the aggregate net asset
value of the Shares of the relevant Fund, as determined in the manner described
in the Registration Statement and Prospectus.
(g) If and whenever the determination of net asset value is suspended
and until such suspension is terminated, no further orders for Shares will be
processed by the Distributor except such unconditional orders as may have been
placed with the Distributor before it had knowledge of the suspension. In
addition, the Trust reserves the right to suspend sales and Distributor's
authority to process orders for Shares on behalf of the Trust, upon due notice
to the Distributor, if, in the judgment of
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the Trust, it is in the best interests of the Trust to do so. Suspension will
continue for such period as may be determined by the Trust.
(h) The Distributor is not authorized by the Trust to give any
information or to make any representations other than those contained in the
Registration Statement or Prospectus or contained in shareholder reports or
other material that may be prepared by or on behalf of the Trust for the
Distributor's use. The Distributor shall be entitled to rely on and shall not be
responsible in any way for information provided to it by the Trust and its
respective service providers and shall not be liable or responsible for the
errors and omissions of such service providers, provided that the foregoing
shall not be construed to protect the Distributor against any liability to the
Trust or the Trust's 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.
(i) The Board of Trustees shall approve the form of any Investor
Services Agreement to be entered into by the Distributor.
(j) At the request of the Trust, the Distributor shall enter into
agreements in the form specified by the Trust (each a "Participant Agreement")
with participants in the system for book-entry of The Depository Trust Company
and the NSCC as described in the Prospectus.
(k) The Distributor shall ensure that all direct requests for
Prospectuses and Statements of Additional of Information are fulfilled. The
Distributor will generally make it known in the brokerage community that
prospectuses and statements of additional information are available, including
by (i) making such disclosure in all marketing and advertising materials
prepared and/or filed by the Distributor with the NASD, and (ii) as may
otherwise be required by the Commission.
(l) The Distributor agrees to make available, at the Trust's request,
one or more members of its staff to attend Board meetings of the Trust in order
to provide information with regard to the ongoing distribution process and for
such other purposes as may be requested by the Board of Trustees of the Trust.
4. Duties of the Trust.
(a) The Trust agrees to issue Shares of each Fund and to request The
Depository Trust Company to record on its books the ownership of such Shares in
accordance with the book-entry system procedures described in the Prospectus in
such amounts as the Distributor has requested through the Transfer Agent in
writing or by other means of data transmission, as promptly as practicable after
receipt by the Trust of the requisite purchase price and acceptance of such
order, upon the terms described in the Registration Statement. The Trust may
reject any order for Shares or stop all receipts of such orders at any time upon
reasonable notice to the Distributor, in accordance with the provisions of the
Prospectus.
(b) The Trust agrees that it will take all action necessary to register
an indefinite number of Shares under the 1933 Act. The Trust will make available
to the Distributor such number of copies of its then currently effective
Prospectus as the Distributor may reasonably request. The Trust will furnish to
the Distributor copies of all information, financial statements and other papers
that the Distributor may reasonably request for use in connection with the
distribution of Shares. The Trust shall keep the Distributor informed of the
jurisdictions in which Shares of the Trust are authorized for sale and shall
promptly notify the Distributor of any change in this information. The
Distributor shall not be liable for
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damages resulting from the sale of Shares in authorized jurisdictions where the
Distributor had no information from the Trust that such sale or sales were
unauthorized at the time of such sale or sales.
(c) The Trust represents to the Distributor that the Registration
Statement and Prospectus filed by the Trust with the Commission with respect to
the Trust have been prepared in conformity with the requirements of the 1933
Act, the 1940 Act and the rules and regulations of the Commission thereunder.
The Trust will notify the Distributor promptly of any amendment to the
Registration Statement or supplement to the Prospectus and any stop order
suspending the effectiveness of the Registration Statement.
5. Fees and Expenses.
(a) The Trust will, with respect to each Fund, pay to the Distributor
all fees and expenses pursuant to the terms of the Rule 12b-1 Plan in effect for
each respective Fund.
(b) The Distributor will bear the following costs and expenses relating
to the distribution of Shares of the Funds: (a) the costs of maintaining the
records required of a broker-dealer registered under the 1934 Act; (b) the
expenses of maintaining its registration or qualification as a dealer or broker
under federal or state laws; (c) the expenses incurred by the Distributor in
connection with normal (non-expedited) NASD filing fees; and (d) all other
expenses incurred in connection with the distribution services contemplated
herein, except as specifically provided in this Agreement.
(c) The Distributor shall pay, from the fees received by it from the
Funds pursuant to the Rule 12b-1 Plan, all fees and make reimbursement of
expenses, pursuant to and in accordance with any and all Investor Services
Agreements, as approved by the Board of Trustees of the Trust, as set forth in
Section 3 of this Agreement. Further, the Distributor will pay, from the fees
received by it from the Funds pursuant to the Rule 12b-1 Plan, all fees with
respect to expedited NASD filing fees.
6. Indemnification.
(a) The Trust agrees to indemnify and hold harmless the Distributor and
each of the directors, officers, agents and employees and any person who
controls the Distributor within the meaning of Section 15 of the 1933 Act (any
of the Distributor, its officers, agents, employees and directors or such
control persons, for purposes of this paragraph, an "Indemnitee") against any
loss, liability, claim, damages or expense (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
out of or based upon the claim that the Registration Statement, Prospectus,
shareholder reports or other information filed or made public by the Trust (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 (and in the case of the Prospectus, in
light of the circumstances under which they were made) not misleading under the
1933 Act, or any other statute or the common law. However, the Trust does not
agree to indemnify the Distributor or hold it harmless to the extent that the
statement or omission was made in reliance upon, and in conformity with
information furnished to the Trust by or on behalf of the Distributor. The Trust
will also not indemnify any Indemnitee with respect to any untrue statement or
omission made in the Registration Statement or Prospectus that is subsequently
corrected in such document (or an amendment thereof or supplement thereto) if a
copy of the Prospectus (or such amendment or supplement) was not sent or given
to the person asserting any such loss, liability, claim, damage or expense at or
before the written confirmation to such person in any case where such delivery
is required by the 1933 Act and the Trust had notified the Distributor of the
amendment or
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supplement prior to the sending of the confirmation. In no case (i) is the
indemnity of the Trust in favor of any Indemnitee to be deemed to protect the
Indemnitee against any liability to the Trust or its shareholders to which the
Indemnitee 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, or (ii)
is the Trust to be liable under its indemnity agreement contained in this
paragraph with respect to any claim made against any Indemnitee unless the
Indemnitee shall have notified the Trust in writing of the claim within a
reasonable time after the summons or other first written notification giving
information of the nature of the claim shall have been served upon Indemnitee
(or after Indemnitee shall have received notice of service on any designated
agent). However, failure to notify the Trust of any claim shall not relieve the
Trust from any liability which it may have to any Indemnitee against whom such
action is brought otherwise than on account of its indemnity agreement contained
in this paragraph. The Trust 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, but if the Trust elects to assume the defense, the
defense shall be conducted by counsel chosen by it and satisfactory to
Indemnitee, defendant or defendants in the suit. In the event the Trust elects
to assume the defense of any suit and retain counsel, Indemnitee, defendant or
defendants in the suit, shall bear the fees and expenses of any additional
counsel retained by them. If the Trust does not elect to assume the defense of
any suit, it will reimburse the Indemnitee, defendant or defendants in the suit,
for the reasonable fees and expenses of any counsel retained by them. The Trust
agrees to notify the Distributor and any Indemnified Dealer promptly of the
commencement of any litigation or proceedings against it or any of its officers
or trustees in connection with the issuance or sale of any of the Shares.
(b) The Distributor agrees to indemnify and hold harmless the Trust and
each of its Trustees and officers and any person who controls the Trust within
the meaning of Section 15 of the 1933 Act (for purposes of this paragraph, the
Trust and each of its Trustees and officers and its controlling persons are
collectively referred to as the "Trust Affiliates") against any loss, liability,
claim, damages or expense (including the reasonable cost of investigating or
defending any alleged loss, liability, claim, damages or expense and reasonable
counsel fees incurred in connection therewith) which the Trust Affiliate may
incur under the 1933 Act or any other statute or common law, but only to the
extent that such loss, liability, claim, damages or expense shall arise out of
or be based upon (i) the allegation of any wrongful act of the Distributor or
any of its employees or (ii) allegation that the Registration Statement,
Prospectus, shareholder reports or other information filed or made public by the
Trust (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 or necessary in
order to make the statements not misleading, insofar as the statement or
omission was made in reliance upon, and in conformity with information furnished
to the Trust by or on behalf of the Distributor. In no case (i) is the indemnity
of the Distributor in favor of any Trust Affiliate to be deemed to protect any
Trust Affiliate against any liability to the Trust or its security holders to
which such Trust Affiliate 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, or (ii) is the Distributor to be liable under its indemnity agreement
contained in this paragraph with respect to any claim made against any Trust
Affiliate unless the Trust Affiliate shall have notified the Distributor in
writing of the claim within a reasonable time after the summons or the first
written notification giving information of the nature of the claim shall have
been served upon the Trust Affiliate (or after the Trust Affiliate 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 Trust Affiliate against whom the action is
brought otherwise than on account of its indemnity agreement contained in this
paragraph. The Distributor 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, but if the Distributor elects to assume the defense, the
defense shall be conducted by counsel
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chosen by it and satisfactory to the Trust, its officers and Board and to any
controlling person or persons, defendant or defendants in the suit. In the event
that Distributor elects to assume the defense of any suit and retain counsel,
the Trust or controlling person or persons, defendant or defendants in the suit,
shall bear the fees and expenses of any additional counsel retained by them. If
the Distributor does not elect to assume the defense of any suit, it will
reimburse the Trust, its officers and Board or controlling person or persons,
defendant or defendants in the suit, for the reasonable fees and expenses of any
counsel retained by them. The Distributor agrees to notify the Trust promptly of
the commencement of any litigation or proceedings against it in connection with
the issuance and sale of any of the shares.
(c) No indemnified party shall settle any claim against it for which it
intends to seek indemnification from the indemnifying party, under the terms of
section 6(a) or 6(b) above, without the prior written notice to and consent from
the indemnifying party, which consent shall not be unreasonably withheld. No
indemnified or indemnifying party shall settle any claim unless the settlement
contains a full release of liability with respect to the other party in respect
of such action. This section 6 shall survive the termination of this Agreement.
7. Representations.
(a) The Distributor represents and warrants that (i) it is duly
organized as a Colorado corporation and is and at all times will remain duly
authorized and licensed to carry out its services as contemplated herein; (ii)
the execution, delivery and performance of this Agreement are within its power
and have been duly authorized by all necessary action; and (iii) its entering
into this Agreement or providing the services contemplated hereby does not
conflict with or constitute a default or require a consent under or breach of
any provision of any agreement or document to which the Distributor is a party
or by which it is bound and (iv) it is registered as a broker-dealer under the
1934 Act and is a member of the NASD.
(b) The Trust represents and warrants that (i) it is duly organized as
a Massachusetts trust and is and at all times will remain duly authorized to
carry out its obligations as contemplated herein; (ii) it is registered as an
investment company under the 1940 Act; (iii) the execution, delivery and
performance of this Agreement are within its power and have been duly authorized
by all necessary action; and (iv) its entering into this Agreement does not
conflict with or constitute a default or require a consent under or breach of
any provision of any agreement or document to which the Trust is a party or by
which it is bound.
8. Duration, Termination and Amendment.
(a) This Agreement shall be effective on March 1, 2000, and unless
terminated as provided herein, shall continue for two years from its effective
date, and thereafter from year to year, provided such continuance is approved
annually by the vote of a majority of the Board of Trustees, and by the vote of
those Trustees who are not "interested persons" of the Trust (the "Independent
Trustees") and, if a plan under Rule 12b-1 under the 1940 Act is in effect, by
the vote of those Trustees who are not "interested persons" of the Trust and who
are not parties to such plan or this Agreement and have no financial interest in
the operation of such plan or in any agreements related to such plan, cast in
person at a meeting called for the purpose of voting on the approval. This
Agreement may be terminated at any time, without the payment of any penalty, as
to each Fund (i) by vote of a majority of the Independent Trustees or (ii) by
vote of a majority (as defined in the 0000 Xxx) of the outstanding voting
securities of the Fund, on at least sixty (60) days prior written notice to the
Distributor. In addition, this Agreement may be terminated at any time by the
Distributor upon at least sixty (60) days prior written notice to the Trust.
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This Agreement shall automatically terminate in the event of its assignment. As
used in this paragraph, the terms "assignment" and "interested persons" shall
have the respective meanings specified in the 1940 Act.
(b) During such period as the Distributor receives compensation
pursuant to the 12b-1 Plan, and this Agreement constitutes a Rule 12b-1 Plan
related agreement, (i) any material amendment to this Agreement requires the
approval provided for in paragraph (a) with respect to annual renewals of this
Agreement, and (ii) any amendment that materially increases the amount to be
spent for distribution services requires the additional approval of the majority
of the Trust's outstanding voting securities (as defined in the 0000 Xxx) of
each affected Fund; and (iii) the selection and nomination of those Trustees who
are not "interested persons" (as defined in the 0000 Xxx) of the Trust shall be
committed to the discretion of the Trustees of the Trust who are not such
"interested persons" of the Trust;
(c) No provision of this Agreement may be changed, waived, discharged
or terminated except by an instrument in writing signed by the party against
which an enforcement of the change, waiver, discharge or termination is sought.
9. Notice. Any notice or other communication authorized or required by
this Agreement to be given to either party shall be in writing and deemed to
have been given when delivered in person or by confirmed facsimile, or posted by
certified mail, return receipt requested, to the following address (or such
other address as a party may specify by written notice to the other): if to the
Distributor: ALPS Mutual Funds Services, Inc., 000 00xx Xxxxxx, Xxxxx 0000,
Xxxxxx, XX 00000, Attn.: General Counsel, fax: (000) 000-0000; if to the Trust:
State Street Bank and Trust Company, Attn.: Fund Administration Xxxxx
Xxxxxxxxxx, X.X. Xxx 0000, Xxxxxx, XX 00000-0000 fax: (000) 000-0000.
10. Limitation of Liability. The Distributor is expressly put on notice of
the limitation of shareholder liability as set forth in the Declaration of Trust
of the Trust and agrees that the obligations assumed by the Trust under this
contract shall be limited in all cases to the Trust and its assets. The
Distributor shall not seek satisfaction of any such obligation from the
shareholders or any shareholder of the Trust, nor shall the Distributor seek
satisfaction of any such obligation from the Trustees or any individual Trustee
of the Trust. The Distributor understands that the rights and obligations of
each series of shares of the Trust under the Declaration of Trust are separate
and distinct from those of any and all other series.
11. Choice of Law. This Agreement shall be governed by, and construed in
accordance with, the laws of The Commonwealth of Massachusetts, without giving
effect to the choice of laws provisions thereof.
12. Counterparties. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.
13. Severability. If any provisions of this Agreement shall be held or made
invalid, in whole or in part, then the other provisions of this Agreement shall
remain in force. Invalid provisions shall, in accordance with this Agreement's
intent and purpose, be amended, to the extent legally possible, by valid
provisions in order to effectuate the intended results of the invalid
provisions.
14. Insurance. The Distributor will maintain at its expense an errors and
omissions insurance policy that covers services by the Distributor hereunder.
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15. Segregation of Fees and Expenses. Amounts paid by each Fund to the
Distributor under its Rule 12b-1 Plan either for distribution related services
or shareholder services shall not be used to pay for the distribution of Shares
of, or shareholder servicing in respect of, any other Fund. However, fees under
the Rule 12b-1 Plan attributable to the Trust as a whole shall be allocated to
each Fund according to the method adopted by the Trust's Board of Trustees. Fees
attributable to the Trust as a whole shall include any amounts payable under the
Rule 12b-1 Plan to the Distributor for its services rendered hereunder. The
Distributor's allocation of such Rule 12b-1 Plan fees shall be subject to review
by the Trust's Board of Trustees.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their officers designated below as of the date first set forth
above.
THE STATE STREET INSTITUTIONAL INVESTMENT TRUST
By:/s/Xxxxxxxx X. Xxxxxxx
----------------------
Name: Xxxxxxxx X. Xxxxxxx
Title: President
ALPS MUTUAL FUNDS SERVICES, INC.
By: /s/Xxxxxx X. Xxxxxx
--------------------
Name: Xxxxxx X. Xxxxxx
Title: Chief Financial Officer
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Annex I
FUND
----
State Street Equity 500 Index Fund (classes A and B)
State Street Equity 400 Index Fund
State Street Equity 2000 Index Fund
State Street MSCI(R) EAFE(R) Index Fund
State Street Aggregate Bond Index Fund
As of February 28, 2000
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