EXHIBIT 6(A)
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Distribution Agreement
DISTRIBUTION AGREEMENT
THIS AGREEMENT made as of this 3rd day of September, 1997, by and between
The Phoenix-Engemann Funds, a Massachusetts business trust having a place of
business located at 000 Xxxxx Xxxxxxxx Xxxxxxxxx, Xxxxxxxx, Xxxxxxxxxx (the
"Trust") and Phoenix Equity Planning Corporation, a Connecticut corporation
having a place of business located at 000 Xxxxxx Xxxxxx Xxxxxxxxx, Xxxxxxx,
Xxxxxxxxxxx (the "Distributor").
WITNESSETH THAT:
1. The Trust hereby grants to the Distributor the right to purchase shares
of beneficial interest of each class of each series of the Trust established and
designated as of the date hereof and of any additional series and classes
thereof which the Trustees may establish and designate during the term of this
Agreement (collectively called the "Series") and to resell shares of each Series
(collectively called the "Shares") as principal and not as agent. The
Distributor accepts such appointment and agrees to render the services described
in this Agreement for the compensation herein provided.
2. The Distributor's right to purchase Shares shall be exclusive except that
the terms of this Agreement shall not apply to Shares issued or transferred:
a) pursuant to an offer of exchange exempted under Section 22(d) of
the Investment Company Act of 1940, as amended (the "Act") by reason of the fact
that said offer is permitted by Section 11 of the Act, including any offer made
pursuant to clause (1) or (2) of Section 11(b);
b) upon the sale to a registered unit investment trust which is the
issuer of periodic payment plan certificates the net proceeds of which are
invested in redeemable securities;
c) pursuant to an offer made solely to all registered holders of
Shares, or all registered holders of Shares of any Series, proportionate to
their holdings or proportionate to any cash distribution made to them by the
Trust (subject to appropriate qualifications designed solely to avoid issuance
of fractional securities);
d) in connection with any merger or consolidation of the Trust or of
any Series with any other investment company or the acquisition by the Trust, by
purchase or otherwise, of any other investment company;
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e) pursuant to sales exempted from Section 22(d) of the Act, by rule
or regulation or order of the Securities and Exchange Commission as provided in
the then current registration statement of the Trust; or
f) in connection with the reinvestment by Trust shareholders of
dividend and capital gains distributions.
3. The "Net Asset Value" and the "Public Offering Price" of the Shares of
each Series as referred to in this Agreement shall be computed in accordance
with the provisions of the then current registration statement of the Trust. The
Distributor shall be notified promptly by the Trust of such computations.
4. Each day the Distributor shall have the right to purchase from the Trust,
as principal, the amount of Shares of each Series needed to fill unconditional
orders for Shares of such Series received by the Distributor from dealers or
investors, but no more than the Shares needed, at a price equal to the Net Asset
Value of the Shares of such Series. Any purchase of Shares by the Distributor
under this Agreement shall be subject to reasonable adjustment for clerical
errors, delays and errors of transmission and cancellation of orders.
5. With respect to transactions other than with dealers, the Distributor
will sell Shares of each Series only at the Public Offering Price then in
effect, except to the extent that sales at less than the Public Offering Price
may be allowed by the Act, any rule or regulation promulgated thereunder or by
order of the Securities and Exchange Commission, provided, however, that any
such sales at less than the Public Offering Price shall be consistent with the
terms of the then current registration statement of the Trust. Any sale of
Shares of each Series to or through a person other than a dealer will be at the
Public Offering Price; however, the Distributor may pay a commission to such
person equal to no more than the difference between the Public Offering Price
and the Net Asset Value of those Shares. The Distributor will sell at Net Asset
Value Shares of any Series which are offered by the then current registration
statement or prospectus of the Trust of sale at such Net Asset Value.
6. Sales at a discount from the Public Offering Price shall be made in
accordance with the terms and conditions of uniform selling agreements allowing
such discounts. Such discounts shall not exceed the difference between the Net
Asset Value and the Public Offering Price.
7. The Trust shall furnish the Distributor with copies of its Declaration of
Trust, as amended from time to time. The Trust shall also furnish the
Distributor with any other
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documents of the Trust which will assist the Distributor in the performance of
its duties hereunder.
8. The Distributor agrees to use its best efforts (in states where it may
lawfully do so) to obtain from investors unconditional orders for Shares
authorized for issue by the Trust and registered under applicable Federal
securities laws, and, so long as it does so, nothing herein contained shall
prevent the Distributor from entering into similar arrangements with other
registered investment companies. The Distributor may, in the exercise of its
discretion, refuse to accept orders for Shares from any person.
9. Upon receipt by the Trust of a purchase order from the Distributor,
accompanied by proper applications for the purchase of Shares and delivery
instructions, the Trust shall, as promptly as practicable thereafter, cause
evidence of ownership of such Shares to be delivered as indicated in such
purchase order. Payment for such Shares shall be made by the Distributor to the
Trust in a manner acceptable to the Trust, provided that the Distributor shall
pay for such Shares no later than the third business day after the Distributor
shall have contracted to purchase such shares.
10. In connection with offering for sale and selling Shares, the Trust
authorizes the Distributor to give only such information and to make only such
statements or representations as are contained in the then current registration
statement of the Trust or in then current sales literature or advertisements.
11. The Trust agrees to pay the following expenses:
a) the cost of mailing stock certificates representing Shares;
b) fees and expenses (including legal expenses) of registering and
maintaining registrations of the Trust and of each Series with the Securities
and Exchange Commission including the preparation and printing of registration
statements and prospectuses for filing with said Commission;
c) fees and expenses (including legal expenses) incurred in
registering and qualifying Shares for sale with any state regulatory agency and
fees and expenses of maintaining, renewing, increasing or amending such
registrations and qualifications;
d) the expense of any issue or transfer taxes upon the sale of Shares
to the Distributor by the Trust; and
e) the cost of preparing and distributing reports and notices to
shareholders.
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12. The Distributor agrees to pay the following expenses:
a) all expenses of printing prospectuses and statements of additional
information used in connection with the sale of Shares and printing and
preparing all other sales literature;
b) all fees and expenses in connection with the qualification of the
Distributor as a dealer in the various states and countries;
c) the expense of any stock transfer tax required in connection with
the sale of Shares by the Distributor as principal to dealers or to investors;
and
d) all other expenses in connection with offering for sale and the
sale of Shares which have not been herein specifically allocated to the Trust.
13. The Trust hereby appoints the Distributor its agent to receive requests
to accept the Trust's offer to repurchase Shares upon such terms and conditions
as may be described in the Trust's then current registration statement. The
agency granted in this paragraph 13 is terminable at the discretion of the
Trust.
14. The Trust agrees to indemnify and hold harmless the Distributor, its
officers and directors and each person, if any, who controls the Distributor
within the meaning of Section 15 of the Securities Act of 1933, as amended,
against any losses, claims, damages, liabilities and expenses (including the
cost of any legal fees incurred in connection therewith) which the Distributor,
its officers, directors or any such controlling person may incur under said Act,
under any other statute, at common law or otherwise, arising out of or based
upon
a) any untrue statement or alleged untrue statement of a material fact
contained in the Trust's registration statement or prospectus (including
amendments and supplements thereto), or
b) any omission or alleged omission to state a material fact required
to be stated in the Trust's registration statement or prospectus or necessary to
make the statements in either not misleading, provided, however, that insofar as
losses, claims, damages, liabilities or expenses arise out of or are based upon
any such untrue statement or omission or alleged untrue statement or omission
made in reliance and in conformity with information furnished to the Trust by
the Distributor for use in the Trust's registration statement or prospectus,
such indemnification is not applicable. In no case shall the Trust indemnify the
Distributor or its controlling persons as to any amounts incurred for any
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liability arising out of or based upon any action for which the Distributor, its
officers and directors or any controlling person would otherwise be subject to
liability by reason of willful misfeasance, bad faith, or gross negligence in
the performance of its duties or by reason of the reckless disregard of its
obligations and duties under this Agreement.
15. The Distributor agrees to indemnify and hold harmless the Trust, its
officers and trustees and each person, if any, who controls the Trust within the
meaning of Section 15 of the Securities Act of 1933, as amended, against any
losses, claims, damages, liabilities and expenses (including the cost of any
legal fees incurred in connection therewith) which the Trust, its officers,
trustees or any such controlling person any incur under said Act, under any
other statute, at common law or otherwise arising out of the acquisition of any
shares by any person which
a) may be based upon any wrongful act by the Distributor or any of its
employees or representatives, or
b) may be based upon any untrue statement or alleged untrue statement
of a material fact contained in the Trust's registration statement or prospectus
(including amendments and supplements thereto), or any omission or alleged
omission to state a material fact required to be stated therein or necessary to
make the statements therein not misleading if such statement or omission was
made in reliance upon information furnished or confirmed in writing to the Trust
by the Distributor.
16. It is understood that:
a) trustees, officers, employees, agents and shareholders of the Trust
are or may be interested persons, as that term is defined in the Act
("Interested Persons"), of the Distributor as directors, officers, stockholders
or otherwise;
b) directors, officers, employees, agents and stockholders of the
Distributor are or may be Interested Persons of the Trust as trustees, officers,
shareholders or otherwise;
c) the Distributor may be an Interested Person of the Trust as
shareholder or otherwise; and
d) the existence of any such dual interest shall not offset the
validity hereof or of any transactions hereunder.
17. The Trust may terminate this Agreement by 60 days written notice to the
Distributor at any time, without the payment of any penalty, by vote of the
Trustees or by
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a vote of a majority of the outstanding voting securities, as that term is
defined in the Act, of the Trust. The Distributor may terminate this Agreement
by 60 days written notice to the Trust, without the payment of any penalty. This
Agreement shall immediately terminate in the event of its assignment, as that
term is defined in the Act.
18. Subject to prior termination as provided in paragraph 17, this Agreement
shall continue in force for one year from the date of execution and from year to
year thereafter so long as the continuance after such one year period shall be
specifically approved at least annually by vote of the Trustees, or by a vote of
a majority of the appropriate class of outstanding voting securities, as that
term is defined in the Act, of the Trust. Additionally, each annual renewal of
this Agreement must be approved by the vote of a majority of the Trustees who
are not parties to the Agreement or Interested Persons of any such party, cast
in person at a meeting of the Trustees called for the purpose of voting on such
approval.
19. It is expressly agreed that the obligations of the Trust hereunder shall
not be binding upon any of the Trustees, shareholders, nominees, officers,
agents or employees of the Trust personally, but bind only the trust property of
the Trust, as provided in the Declaration of Trust. The execution and delivery
of this Agreement by the President of the Trust has been authorized by the
Trustees acting as such, and neither such execution and delivery by such officer
nor such authorization by such Trustees shall be deemed to have been made by any
of them individually or be binding upon or impose any liability on any of them
personally, but shall bind only the trust property of the Trust as provided in
the Declaration of Trust. The Declaration of Trust is on file with the Secretary
of The Commonwealth of Massachusetts.
20. This Agreement shall become effective upon the date first set forth
above. This Agreement shall be governed by the laws of The Commonwealth of
Massachusetts and shall be binding on the successors and assigns of the parties
to the extend permitted by law.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
by their duly authorized officers as of the day and year first written above.
PHOENIX-XXXXXXXX FUNDS
By:
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Title:
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PHOENIX EQUITY PLANNING CORPORATION
By:
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Title:
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