DISTRIBUTION AND SERVICES AGREEMENT
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ EQUITY FUNDS
CLASS C
This Agreement is made as of December 17, 2007, between ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
Equity Funds, a Delaware statutory trust ("Trust"), and ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
Management Inc., a New York corporation ("Distributor"), on behalf of Class C of
the series listed on Schedule A.
WHEREAS, the Trust is registered under the Investment Company Act of 1940,
as amended ("1940 Act"), as an open-end, diversified management investment
company and has established several separate series of shares, with each series
having one or more classes and with each series having its own assets and
investment policies;
WHEREAS, the Trust desires to retain the Distributor to furnish certain
distribution, shareholder, and administrative services to Class C of each series
listed in Schedule A attached hereto, and to Class C of such other series of the
Trust hereinafter established as agreed to from time to time by the parties,
evidenced by an addendum to Schedule A (hereinafter "Series" shall refer to each
Series which is subject to this Agreement, and all agreements and actions
described herein to be made or taken by a Series shall be made or taken by the
Trust on behalf of the Series), and the Distributor is willing to furnish such
services; and
WHEREAS, the Trust has approved a Distribution and Shareholder Services
Plan pursuant to Rule ▇▇▇-▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇▇ ▇▇▇ ("▇▇▇▇") with respect to Class C
of each Series;
NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, the parties agree as follows:
1. The Trust hereby appoints the Distributor as agent to sell the
shares of beneficial interest of Class C of each Series ("Shares") and the
Distributor hereby accepts such appointment. All sales by the Distributor shall
be expressly subject to acceptance by the Trust, acting on behalf of the Series.
The Trust may suspend sales of the Shares of any one or more Series at any time,
and may resume sales at any later time.
2. (a) The Distributor agrees that: (i) all Shares sold by the
Distributor shall be sold at the offering price (which is the net asset value
("NAV") thereof as described in Section 3 hereof plus any applicable sales
charge) as described in the then-current Prospectus and Statement of Additional
Information ("SAI") of Class C of each Series, and (ii) the Series shall receive
100% of such offering price.
(b) The Distributor may enter into agreements, in form and
substance satisfactory to the Trust, with dealers selected by the Distributor,
providing for the sale to such dealers and resale by such dealers of Shares at
their offering price. The Distributor may compensate dealers for services they
provide under such agreements with any applicable sales charge described in a
Series' Prospectus and SAI (or a portion thereof) or other payment from the
Distributor's own resources as the Distributor may determine from time to time.
Payment of any such sales charge or other payment shall be the sole obligation
of the Distributor. This provision shall not be deemed to prohibit payments by
the Distributor to dealers where such payments are made under a distribution
plan adopted by a Series pursuant to Rule 12b-1 under the 1940 Act.
(c) The Distributor can use any of the officers and employees of
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, LLC to provide any of the services or reports required under
this Agreement.
3. The Trust agrees to supply to the Distributor, promptly after the
time or times at which NAV is determined, on each day on which the New York
Stock Exchange is open for unrestricted trading and on such other days as the
Board of Trustees of the Trust ("Trustees") may from time to time determine
(each such day being hereinafter called a "business day"), a statement of the
NAV of each Series having been determined in the manner set forth in the
then-current Prospectus and Statement of Additional Information ("SAI") of Class
C of each Series. Each determination of NAV shall take effect as of such time
or times on each business day as set forth in the then-current Prospectus of
Class C of each Series.
4. Upon receipt by the Trust at its principal place of business of a
written order from the Distributor, together with delivery instructions, the
Trust shall, if it elects to accept such order, as promptly as practicable,
cause the Shares purchased by such order to be delivered in such amounts and in
such names as the Distributor shall specify, against payment therefor in such
manner as may be acceptable to the Trust. The Trust may, in its discretion,
refuse to accept any order for the purchase of Shares that the Distributor may
tender to it.
5. (a) All sales literature and advertisements used by the
Distributor in connection with sales of Shares shall be subject to approval by
the Trust. The Trust authorizes the Distributor, in connection with the sale or
arranging for the sale of Shares of any Series, to provide only such information
and to make only such statements or representations as are contained in the
Series' then-current Prospectus and SAI of Class C or in such financial and
other statements furnished to the Distributor pursuant to the next paragraph or
as may properly be included in sales literature or advertisements in accordance
with the provisions of the Securities Act of 1933 ("1933 Act"), the 1940 Act and
applicable rules of self-regulatory organizations. Neither the Trust nor any
Series shall be responsible in any way for any information provided or
statements or representations made by the Distributor or its representatives or
agents other than the information, statements and representations described in
the preceding sentence.
(b) Each Series shall keep the Distributor fully informed with
regard to its affairs, shall furnish the Distributor with a certified copy of
all of its financial statements and a signed copy of each report prepared for it
by its independent auditors, and shall cooperate fully in the efforts of the
Distributor to negotiate and sell Shares of such Series and in the Distributor's
performance of all its duties under this Agreement.
6. The Distributor, as agent of each Series and for the account and
risk of each Series, is authorized, subject to the direction of the Trust, to
redeem outstanding Shares of such Series when properly tendered by shareholders
pursuant to the redemption right granted to such Series' shareholders by the
Trust Instrument of the Trust, as from time to time in effect, at a redemption
price equal to the NAV per Share of such Series next determined after proper
tender and acceptance (subject to any applicable redemption fee or contingent
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deferred sales charge as described below). The Trust has delivered to the
Distributor a copy of the Trust's Trust Instrument as currently in effect and
agrees to deliver to the Distributor any amendments thereto promptly. This does
not prohibit the Distributor from charging any applicable redemption fee or
contingent deferred sales charge as described in the then-current Prospectus and
SAI of Class C of each Series.
7. The Distributor shall assume and pay or reimburse each Series for
the following expenses of such Series: (i) costs of printing and distributing
reports, prospectuses and SAIs for other than existing shareholders used in
connection with the sale or offering of the Series' Shares; (ii) costs of
preparing, printing and distributing all advertising and sales literature
relating to such Series printed at the instruction of the Distributor; and (iii)
counsel fees and expenses in connection with the foregoing. The Distributor
shall pay all its own costs and expenses connected with the sale of Shares and
may pay the compensation and expenses, including overhead and telephone and
other communication expenses, of organizations and employees that engage in or
support the distribution of Shares.
8. Each Series shall maintain a currently effective Registration
Statement on Form N-1A with respect to the Shares of such Series and shall file
with the Securities and Exchange Commission ("SEC") such reports and other
documents as may be required under the 1933 Act and the 1940 Act or by the rules
and regulations of the SEC thereunder.
Each Series represents and warrants that the Registration Statement,
post-effective amendments, Prospectus and SAI (excluding statements relating to
the Distributor and the services it provides that are based upon written
information furnished by the Distributor expressly for inclusion therein) of
such Series shall not contain any untrue statement of material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein not misleading, and that all statements or information
furnished to the Distributor, pursuant to Section 5(b) hereof, shall be true and
correct in all material respects.
9. In addition to the foregoing, the Distributor agrees to provide or
obtain certain administrative and shareholder services for Class C of each
Series. Such services shall include, but are not limited to, administering
periodic investment and periodic withdrawal programs; researching and providing
historical account activity information for shareholders requesting it;
preparing and mailing account and confirmation statements to account holders;
preparing and mailing tax forms to account holders; serving as custodian for
retirement plans investing in Shares; dealing appropriately with abandoned
accounts; collating and reporting the number of Shares attributable to each
state for blue sky registration and reporting purposes; identifying and
reporting transactions exempt from blue sky registration requirements; and
providing and maintaining ongoing shareholder services for the duration of the
shareholders' investment in Class C of each Series, which may include updates on
performance, total return, other related statistical information, and a
continual analysis of the suitability of the investment in Class C of each
Series. The Distributor may subcontract to third parties some or all of its
responsibilities to the Series under this paragraph. The Distributor may pay
compensation and expenses, including overhead and telephone and other
communication expenses, to organizations and employees who provide such
services.
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10. As compensation for the distribution, shareholder and administrative
services provided under this Agreement, the Distributor shall receive from Class
C of each Series a fee at the rate and under the terms and conditions set forth
in the Plan adopted by Class C of the Series, as such Plan may be amended from
time to time as well as any sales charge applicable upon the sale or redemption
of Shares as described in the Series' Prospectus and SAI. In addition to the
expenditures specifically authorized herein, the Distributor may spend with
respect to Class C such amounts as it deems appropriate for any purpose
consistent with the Plan, as amended from time to time.
11. To the extent required by Rule 12b-1 under the 1940 Act, the
Distributor shall prepare, at least quarterly, reports for the Trustees showing
expenditures under this Agreement and the purposes for which such expenditures
were made. Such reports shall be in a format suitable to ensure compliance with
the applicable requirements of the SEC and the Financial Industry Regulatory
Authority.
12. (a) This Agreement, as amended, shall become effective on the date
first written above and shall remain in full force and effect until October 31,
2008 and may be continued from year to year thereafter; PROVIDED, that such
continuance shall be specifically approved each year by the Trustees or by a
majority of the outstanding voting securities of Class C of the Series, and in
either case, also by a majority of the Trustees who are not interested persons
of the Trust or the Distributor ("Disinterested Trustees") and by a majority of
those Disinterested Trustees who have no direct or indirect financial interest
in the Plan or this Agreement ("Rule 12b-1 Trustees"). This Agreement may be
amended as to any Series with the approval of the Trustees or of a majority of
the outstanding voting securities of Class C of such Series; PROVIDED, that in
either case, such amendment also shall be approved by a majority of the
Disinterested Trustees and the Rule 12b-1 Trustees.
(b) Either party may terminate this Agreement without the payment
of any penalty, upon not more than sixty days' nor less than thirty days'
written notice delivered personally or mailed by registered mail, postage
prepaid, to the other party; PROVIDED, that in the case of termination by any
Series, such action shall have been authorized (i) by resolution of the
Trustees, or (ii) by vote of a majority of the outstanding voting securities of
Class C of such Series, or (iii) by written consent of a majority of the
Disinterested Trustees or the Rule 12b-1 Trustees.
(c) This Agreement shall automatically terminate if it is assigned
by the Distributor.
(d) Any question of interpretation of any term or provision of
this Agreement having a counterpart in or otherwise derived from a term or
provision of the 1940 Act shall be resolved by reference to such term or
provision of the 1940 Act and to interpretation thereof, if any, by the United
States courts or, in the absence of any controlling decision of any such court,
by rules, regulations or orders of the SEC validly issued pursuant to the 1940
Act. Specifically, the terms "interested persons," "assignment" and "vote of a
majority of the outstanding voting securities," as used in this Agreement, shall
have the meanings assigned to them by Section 2(a) of the 1940 Act. In
addition, when the effect of a requirement of the 1940 Act reflected in any
provision of this Agreement is modified, interpreted or relaxed by a rule,
regulation or order of the SEC, whether of special or of general application,
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such provision shall be deemed to incorporate the effect of such rule,
regulation or order. The Trust and the Distributor may from time to time agree
on such provisions interpreting or clarifying the provisions of this Agreement
as, in their joint opinion, are consistent with the general tenor of this
Agreement and with the specific provisions of this Section 12(d). Any such
interpretations or clarifications shall be in writing signed by the parties and
annexed hereto, but no such interpretation or clarification shall be effective
if in contravention of any applicable federal or state law or regulations, and
no such interpretation or clarification shall be deemed to be an amendment of
this Agreement.
No term or provision of this Agreement shall be construed to require the
Distributor to provide distribution, shareholder, or administrative services to
any series of the Trust other than the Series, or to require Class C or any
Series to pay any compensation or expenses that are properly allocable, in a
manner approved by the Trustees, to a class or series of the Trust other than
Class C or such Series.
(e) This Agreement is made and to be principally performed in the
State of New York, and except insofar as the 1940 Act or other federal laws and
regulations may be controlling, this Agreement shall be governed by, and
construed and enforced in accordance with, the internal laws of the State of New
York.
(f) This Agreement is made by the Trust solely with respect to the
Series, and the obligations created hereby with respect to Class C of one Series
bind only assets belonging to Class C of that Series and are not binding on any
other series of the Trust or any other class of that Series.
13. The Distributor or one of its affiliates may from time to time deem
it desirable to offer to the list of shareholders of Class C of each Series the
shares of other mutual funds for which it acts as Distributor, including other
series of the Trust or other products or services; however, any such use of the
list of shareholders of any Series shall be made subject to such terms and
conditions, if any, as shall be approved by a majority of the Disinterested
Trustees.
14. The Distributor shall look only to the assets of Class C of a Series
for the performance of this Agreement by the Trust on behalf of such Series and
such Class of such Series, and neither the shareholders, the Trustees nor any of
the Trust's officers, employees or agents, whether past, present or future,
shall be personally liable therefor.
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IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed by their duly authorized officers and under their respective
seals.
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ EQUITY FUNDS
___________________________________
By:
Title:
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ MANAGEMENT INC.
___________________________________
By:
Title:
Date:
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▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ EQUITY FUNDS
CLASS C
DISTRIBUTION AND SERVICES AGREEMENT
SCHEDULE A
The Series currently subject to this Agreement are as follows:
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ International Large Cap Fund
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ Large Cap Disciplined Growth Fund
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ Select Equities Fund
Date: December 17, 2007