EXHIBIT 13(a)
PURCHASE AGREEMENT
The Xxxxx American Fund (the "Fund"), an unincorporated business
trust organized under the laws of the Commonwealth of Massachusetts, and Xxxx
Xxxxx & Company, Incorporated ("Xxxxx Inc."), hereby agree as follows:
1. The Fund hereby offers Xxxxx Inc. and Xxxxx Inc. hereby purchases
19,000 shares of beneficial interest of the Fund, par value $.0O1 per share (the
"Shares"), consisting of 10,000 Shares in the Xxxxx American Money Market
Portfolio, at a price of $1.00 per Share, and 1,000 Shares in the Xxxxx American
Income and Growth Portfolio, 1,000 Shares in the Xxxxx American Small
Capitalization Portfolio and 7,000 Shares in the Xxxxx American Growth
Portfolio, at a price of $10.00 per Share. Xxxxx Inc. hereby acknowledges
receipt of the Shares acquired in the Portfolios and the Fund hereby
acknowledges receipt from Xxxxx Inc. of $100,000 in full payment for the Shares.
2. Xxxxx Inc. represents and warrants to the Fund that the Shares
are being acquired for investment purposes and not for the purpose of
distribution.
3. Xxxxx Inc. agrees that if it redeems the Shares in any Portfolio
before five years after the date of this Agreement, it will pay to the Fund an
amount that is equal to the number resulting from multiplying the Fund's total
unamortized organizational expenses allocable to the Portfolio involved by a
fraction, the numerator of which is equal to the number of Shares of the
Portfolio redeemed and the denominator of which is equal to the aggregate number
of Shares of the Portfolio outstanding at the time of such redemption.
4. The Fund represents that a copy of its Agreement and Declaration
of Trust, dated April 6, 1988, together with all amendments thereto, is on file
in the office of the Secretary of the Commonwealth of Massachusetts.
5. This Agreement has been executed on behalf of the Fund by the
undersigned officer of the Fund in his capacity as an officer of the Fund. The
obligations of this Agreement shall be binding upon the assets and property of
the Fund only and shall not be binding upon any Trustee, officer or shareholder
of the Fund individually.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement
as of the 20th day of July, 1988.
THE XXXXX AMERICAN FUND
By: /s/ Xxxx X. Xxxxx
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ATTEST:
/s/ Xxxxxxxxx X. Xxxxxxxx XXXX XXXXX & COMPANY, INCORPORATED
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By: /s/ Xxxxx Xxxxxxxx
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ATTEST:
/s/ Xxxxxxxxx X. Xxxxxxxx
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