Exhibit (p)
INITIAL CAPITAL AGREEMENT
October 28, 1996
The Principled Equity Market Fund
Xxxxxxx Place
00 Xxxxxxx Xxxx
Xxxxxx Xxxxxx, XX 00000
Dear Sirs:
The Principled Equity Market Fund (the "Fund") proposes to issue and
sell to the public its shares of beneficial interest without par value (the
"Shares") pursuant to a registration statement on Form N-2 (the "Registration
Statement") filed with the Securities and Exchange Commission. In order to
provide the Fund with a net worth of at least $100,000 as required by Section 14
of the Investment Company Act of 1940, as amended, and additional
capitalization, we hereby confirm our purchase of 10,100 Shares at a price of
$10.00 per Share.
We represent and warrant to the Fund that the Shares are being acquired
by us for investment and not with a view to the resale or further distribution
thereof and that we have no present intention to redeem the Shares.
We agree that in the event the Shares are sold by us or our successors
or any current holder prior to complete amortization
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of organization expenses by the Fund, the proceeds payable in respect of the
Shares shall be reduced by the pro-rata share (based on the proportionate share
of the Shares sold to the total number of Shares outstanding at the time of
sale) of the then unamortized deferred organization expenses as of he date of
such redemption.
Please confirm that the foregoing correctly sets forth our agreement
with the Fund.
Very truly yours,
F. L. Xxxxxx Investment
Management Company
By S/Xxxxx X.X. Xxxxxx
Xxxxx X.X. Xxxxxx
President
Confirmed, as of the date
first above mentioned.
THE PRINCIPLED EQUITY
MARKET FUND
By:S/Xxxxx X.X. Xxxxxx
Xxxxx X. X. Xxxxxx
President
