XXXXXX FUNDS TRUST
CLASS S
DISTRIBUTION PLAN AND AGREEMENT
This Plan and Agreement (the "Plan") constitutes the Distribution Plan
for the Class S shares of the portfolio series (each a "Fund" and
collectively the "Funds") of Xxxxxx Funds Trust, a Massachusetts
business trust (the "Trust"), adopted pursuant to the provisions of Rule
12b-1 under the Investment Company Act of 1940 (the "Act") and the
related agreement between the Trust and Xxxxxx Retail Management Limited
Partnership ("PRM"). During the effective term of this Plan, the Trust
may make payments to PRM upon the terms and conditions hereinafter set
forth:
Section 1. The Trust may make payments to PRM, in the form of fees or
reimbursements, to compensate PRM for services provided and expenses
incurred by it for purposes of promoting the sale of Class S shares of
the Funds, reducing redemptions of shares, or maintaining or improving
services provided to shareholders by PRM and investment dealers. The
amount of such payments and the purposes for which they are made shall
be determined by the Qualified Trustees (as defined below). Payments
under this Plan shall not exceed in any fiscal year the annual rate of
0.25% of the average net asset value of the Class S shares of the Trust,
as determined at the close of each business day during the year. A
majority of the Qualified Trustees may, at any time and from time to
time, reduce the amount of such payments, or may suspend the operation
of the Plan for such period or periods of time as they may determine.
Section 2. This Plan shall not take with respect to a Fund effect
until:
(a) it has been approved by a vote of a majority of the outstanding
Class S shares of the Fund, but only if the Plan is adopted after the
commencement of any public offering of the Trust's Class S shares or the
sale of the Fund's Class S shares to persons who are not affiliated
persons of the Fund, affiliated persons of such persons, promoters of
the Fund or affiliated persons of such promoters;
(b) it has been approved, together with any related agreements, by votes
of the majority (or whatever greater percentage may, from time to time,
be required by Section 12(b) of the Act or the rules and regulations
thereunder) of both (i) the Trustees of the Trust, and (ii) the
Qualified Trustees of the Trust, cast in person at a meeting called for
the purpose of voting on this Plan or such agreement.
Section 3. This Plan shall continue in effect with respect to a Fund
for a period of more than one year after it takes effect only so long as
such continuance is specifically approved at least annually in the
manner provided for approval of this Plan in Section 2(b).
Section 4. PRM shall provide to the Trustees of the Trust, and the
Trustees shall review, at least quarterly, a written report of the
amounts so expended and the purposes for which such expenditures were
made.
Section 5. This Plan may be terminated with respect to a Fund at any
time by vote of a majority of the Qualified Trustees, or by vote of a
majority of the outstanding Class S shares of the Fund.
Section 6. All agreements with any person relating to implementation of
this Plan shall be in writing, and any agreement related to this Plan
shall provide:
(a) that such agreement may be terminated with respect to a Fund at any
time, without payment of any penalty, by vote of a majority of the
Qualified Trustees or by vote of a majority of the outstanding Class S
shares of the Fund, on not more than 60 days' written notice to any
other party to the agreement; and
(b) that such agreement shall terminate automatically in the event of
its assignment.
Section 7. This Plan may not be amended to increase materially the
amount of distribution expenses with respect to a Fund permitted
pursuant to Section 1 hereof without the approval of a majority of the
outstanding Class S shares of the Fund, and all material amendments to
this Plan shall be approved in the manner provided for approval of this
Plan in Section 2(b).
Section 8. As used in this Plan, (a) the term "Qualified Trustees"
shall mean those Trustees of the Trust who are not interested persons of
the Trust, and have no direct or indirect financial interest in the
operation of this Plan or any agreements related to it, (b) the term
"majority of the outstanding Class S shares of the Fund" means the
affirmative vote, at a duly called and held meeting of Class S
shareholders of the relevant Fund, (i) of the holders of 67% or more of
the Class S shares of such Fund present (in person or by proxy) and
entitled to vote at such meeting, if the holders of more than 50% of the
outstanding Class S shares of such Fund entitled to vote at such meeting
are present in person or by proxy, or (ii) of the holders of more than
50% of the outstanding Class S shares of such Fund entitled to vote at
such meeting, whichever is less, and (c) the terms "assignment,"
"affiliated person," "interested person" and "promoter" shall have the
respective meanings specified in the Act and the rules and regulations
thereunder, subject to such exemptions as may be granted by the
Securities and Exchange Commission.
Section 9. A copy of the Agreement and Declaration of Trust of the
Trust is on file with the Secretary of State of The Commonwealth of
Massachusetts and notice is hereby given that this instrument is
executed on behalf of the Trustees of the Trust as Trustees and not
individually, and that the obligations of or arising out of this
instrument are not binding upon any of the Trustees, officers or
shareholders individually but are binding only upon the assets and
property of the relevant Fund.
Executed as of February 13, 2003.
XXXXXX RETAIL MANAGEMENT XXXXXX FUNDS TRUST
By: /s/ Xxxxxxx X. Xxxxxxxx /s/ Xxxxxxx X. Xxxxxx
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Xxxxxxx X. Xxxxxxxx Xxxxxxx X. Xxxxxx
President Executive Vice President, Treasurer
and Chief Financial Officer
