Common use of Distribution Plan Clause in Contracts

Distribution Plan. (a) Pursuant to a Distribution Plan adopted by the Fund, the Fund agrees to make monthly payments to the Distributor in an amount computed at an annual rate of .25 of 1% of the Fund's average daily net assets, to finance activities undertaken by the Distributor for the purpose of distributing the Fund's shares to investors. The Distributor is obligated to and hereby agrees to use the entire amount of said fee to finance the following distribution-related activities: (i) Preparation, printing and distribution of the Prospectus and Statement of Additional Information and any supplement thereto used in connection with the offering of shares to the public; (ii) Printing of additional copies for use by the Distributor as sales literature, of reports and other communications which were prepared by the Fund for distribution to existing shareholders; (iii) Preparation, printing and distribution of any other sales literature used in connection with the offering of shares to the public; (iv) Expenses incurred in advertising, promoting and selling shares of the Fund to the public; and (v) Any fees paid by the Distributor to securities dealers as distribution or service fees who have executed a Dealer's Distribution Agreement with the Distributor. (b) All payments to the Distributor pursuant to this paragraph are subject to the following conditions being met by the Distributor: (i) For the fiscal year of the Fund during which this Plan becomes effective and for each subsequent fiscal year of the Fund during which this Plan remains in effect, the Distributor shall submit to the Fund a budget setting forth in reasonable detail the distribution-related activities to which the Distributor proposes to apply payments made by the Fund hereunder; (ii) Before any payment is made to the Distributor in respect of any fiscal year, the budget relating thereto shall be approved by vote of the Fund's Directors, including the affirmative vote of a majority of the Independent Directors. (iii) The Distributor shall furnish the Fund with quarterly reports of its expenditures pursuant to each budget so approved, together with receipts or other appropriate written evidence of the amounts expended, and such other information relating to such budget or expenditures or to the other distribution-related activities undertaken or proposed to be undertaken by the Distributor during such fiscal year under its Distribution Agreement with the Fund as the Fund may reasonably request; (c) The Dealer's Distribution Agreement (the "Agreement") contemplated by paragraph 2(v) above shall permit payments to securities dealers by the Distributor only in accordance with the provisions of this paragraph and shall have the approval of the majority of the Board of Directors of the Fund including a majority of the directors who are not interested persons of the Fund as required by the Rule. The Distributor may pay to the other party to any Agreement a quarterly fee for distribution and marketing services provided by such other party. Such quarterly fee shall be payable in arrears in an amount equal to such percentage (not in excess of .000685% per day) of the aggregate net asset value of the shares held by such other party's customers or clients at the close of business each day as determined from time to time by the Distributor. The distribution and marketing services contemplated hereby shall include, but are not limited to, answering inquiries regarding the Fund, account designations and addresses, maintaining the investment of such other party's customers or clients in the Fund and similar services. In determining the extent of such other party's assistance in maintaining such investment by its customers or clients, the Distributor may take into account the possibility that the shares held by such customer or client would be redeemed in the absence of such quarterly fee. (d) The provisions of the Distribution Plan approved by the Shareholders of the Fund on July 12, 1985, and by the Board of Directors of the Fund on May 3, 1985, are fully incorporated herein by reference. In the event the Distribution Plan is terminated by the Board of Directors or Shareholders of the Fund as provided therein, this paragraph shall no longer be effective.