DISTRIBUTION AGREEMENT
THIS AGREEMENT is made this 28th day of February, 1997 between INVESCO
EMERGING OPPORTUNITY FUNDS, INC., a Maryland corporation (the "Fund"), and
INVESCO FUNDS GROUP, INC., a Delaware corporation (the "Underwriter").
W I T N E S S E T H:
WHEREAS, the Fund is registered under the Investment Company Act of
1940, as amended (the "Investment Company Act"), as a diversified, open-end
management investment company and currently has one class of shares (the
"Shares") which is divided into two series, and which may be divided into
additional series (the "Series"), each representing an interest in a separate
portfolio of investments, and it is in the interest of the Fund to offer the
Shares for sale continuously; and
WHEREAS, the Underwriter is engaged in the business of selling shares
of investment companies either directly to investors or through other securities
dealers; and
WHEREAS, the Fund and the Underwriter wish to enter into an agreement
with each other with respect to the continuous offering of the Shares of each
Series in order to promote growth of the Fund and facilitate the distribution of
the Shares;
NOW, THEREFORE, in consideration of the mutual covenants hereinafter
contained, it is hereby agreed by and between the parties hereto as follows:
1. The Fund hereby appoints the Underwriter its agent for the
distribution of Shares of each Series in jurisdictions wherein such
Shares legally may be offered for sale; provided, however, that the
Fund in its absolute discretion may (a) issue or sell Shares of each
Series directly to purchasers, or (b) issue or sell Shares of a
particular Series to the shareholders of any other Series or to the
shareholders of any other investment company, for which the
Underwriter or any affiliate thereof shall act as exclusive
distributor, who wish to exchange all or a portion of their investment
in Shares of such Series or in shares of such other investment company
for the Shares of a particular Series. Notwithstanding any other
provision hereof, the Fund may terminate, suspend or withdraw the
offering of Shares whenever, in its sole discretion, it deems such
action to be desirable. The Fund reserves the right to reject any
subscription in whole or in part for any reason.
2. The Underwriter hereby agrees to serve as agent for the distribution
of the Shares and agrees that it will use its best efforts with
reasonable promptness to sell such part of the authorized Shares
remaining unissued as from time to time shall be effectively
registered under the Securities Act of 1933, as amended (the "1933
Act"), at such prices and on such terms as hereinafter set forth, all
subject to applicable federal and state securities laws and
regulations. Nothing herein shall be construed to prohibit the
Underwriter from engaging in other related or unrelated businesses.
3. In addition to serving as the Fund's agent in the distribution of the
Shares, the Underwriter shall also provide to the holders of the
Shares certain maintenance, support or similar services ("Shareholder
Services"). Such services shall include, without limitation,
answering routine shareholder inquiries regarding the Fund, assisting
shareholders in considering whether to change dividend options and
helping to effectuate such changes, arranging for bank wires, and
providing such other services as the Fund may reasonably request from
time to time. It is expressly understood that the Underwriter or the
Fund may enter into one or more agreements with third parties pursuant
to which such third parties may provide the Shareholder Services
provided for in this paragraph. Nothing herein shall be construed to
impose upon the Underwriter any duty or expense in connection with the
services of any registrar, transfer agent or custodian appointed by
the Fund, the computation of the asset value or offering price of
Shares, the preparation and distribution of notices of meetings, proxy
soliciting material, annual and periodic reports, dividends and
dividend notices, or any other responsibility of the Fund.
4. Except as otherwise specifically provided for in this Agreement, the
Underwriter shall sell the Shares directly to purchasers, or through
qualified broker-dealers or others, in such manner, not inconsistent
with the provisions hereof and the then effective Registration
Statement of the Fund under the 1933 Act (the "Registration
Statement") and related Prospectus (the "Prospectus") and Statement of
Additional Information ("SAI") of the Fund as the Underwriter may
determine from time to time; provided that no broker-dealer or other
person shall be appointed or authorized to act as agent of the Fund
without the prior consent of the directors (the "Directors") of the
Fund. The Underwriter will require each broker-dealer to conform to
the provisions hereof and of the Registration Statement (and related
Prospectus and SAI) at the time in effect under the 1933 Act with
respect to the public offering price of the Shares of any Series. The
Fund will have no obligation to pay any commissions or other
remuneration to such broker-dealers.
5. The Shares of each Series offered for sale or sold by the Underwriter
shall be offered or sold at the net asset value per share determined
in accordance with the then current Prospectus and/or SAI relating to
the sale of the Shares of the appropriate Series except as departure
from such prices shall be permitted by the then current Prospectus
and/or SAI of the Fund, in accordance with applicable rules and
regulations of the Securities and Exchange Commission. The price the
Fund shall receive for the Shares of each Series purchased from the
Fund shall be the net asset value per share of such Share, determined
in accordance with the Prospectus and/or SAI applicable to the sale of
the Shares of such Series.
6. Except as may be otherwise agreed to by the Fund, the Underwriter
shall be responsible for issuing and delivering such confirmations of
sales made by it pursuant to this Agreement as may be required;
provided, however, that the Underwriter or the Fund may utilize the
services of other persons or entities believed by it to be competent
to perform such functions. Shares shall be registered on the transfer
books of the Fund in such names and denominations as the Underwriter
may specify.
7. The Fund will execute any and all documents and furnish any and all
information which may be reasonably necessary in connection with the
qualification of the Shares for sale (including the qualification of
the Fund as a broker-dealer where necessary or advisable) in such
states as the Underwriter may reasonably request (it being understood
that the Fund shall not be required without its consent to comply with
any requirement which in the opinion of the Directors of the Fund is
unduly burdensome). The Underwriter, at its own expense, will effect
all qualifications of itself as broker or dealer, or otherwise, under
all applicable state or Federal laws required in order that the Shares
may be sold in such states or jurisdictions as the Fund may reasonably
request.
8. The Fund shall prepare and furnish to the Underwriter from time to
time the most recent form of the Prospectus and/or SAI of the Fund
and/or of each Series of the Fund. The Fund authorizes the Underwriter
to use the Prospectus and/or SAI, in the forms furnished to the
Underwriter from time to time, in connection with the sale of the
Shares of the Fund and/or of each Series of the Fund. The Fund will
furnish to the Underwriter from time to time such information with
respect to the Fund, each Series, and the Shares as the Underwriter
may reasonably request for use in connection with the sale of the
Shares. The Underwriter agrees that it will not use or distribute or
authorize the use, distribution or dissemination by broker-dealers or
others in connection with the sale of the Shares any statements, other
than those contained in a current Prospectus and/or SAI of the Fund or
applicable Series, except such supplemental literature or advertising
as shall be lawful under Federal and state securities laws and
regulations, and that it will promptly furnish the Fund with copies of
all such material.
9. The Underwriter will not make, or authorize any broker-dealers or
others to make any short sales of the Shares of the Fund or otherwise
make any sales of the Shares unless such sales are made in accordance
with a then current Prospectus and/or SAI relating to the sale of the
applicable Shares.
10. The Underwriter, as agent of and for the account of the Fund, may
cause the redemption or repurchase of the Shares at such prices and
upon such terms and conditions as shall be specified in a then current
Prospectus and/or SAI. In selling, redeeming or repurchasing the
Shares for the account of the Fund, the Underwriter will in all
respects conform to the requirements of all state and federal laws and
the Rules of Fair Practice of the National Association of Securities
Dealers, Inc., relating to such sale, redemption or repurchase, as the
case may be. The Underwriter will observe and be bound by all the
provisions of the Articles of Incorporation or Bylaws of the Fund and
of any provisions in the Registration Statement, Prospectus and SAI,
as such may be amended or supplemented from time to time, notice of
which shall have been given to the Underwriter, which at the time in
any way require, limit, restrict or prohibit or otherwise regulate any
action on the part of the Underwriter.
11. (a) The Fund shall indemnify, defend and hold harmless the
Underwriter, its officers and directors and any person who
controls the Underwriter within the meaning of the 1933 Act, from
and against any and all claims, demands, liabilities and expenses
(including the cost of investigating or defending such claims,
demands or liabilities and any attorney fees incurred in
connection therewith) which the Underwriter, its officers and
directors or any such controlling person, may incur under the
federal securities laws, the common law or otherwise, arising out
of or based upon any alleged untrue statement of a material fact
contained in the Registration Statement or any related Prospectus
and/or SAI or arising out of or based upon any alleged omission
to state a material fact required to be stated therein or
necessary to make the statements therein not misleading.
Notwithstanding the foregoing, this indemnity agreement, to the
extent that it might require indemnity of the Underwriter or any
person who is an officer, director or controlling person of the
Underwriter, shall not inure to the benefit of the Underwriter or
officer, director or controlling person thereof unless a court of
competent jurisdiction shall determine, or it shall have been
determined by controlling precedent, that such result would not
be against public policy as expressed in the federal securities
laws and in no event shall anything contained herein be so
construed as to protect the Underwriter against any liability to
the Fund, the Directors or the Fund's shareholders to which the
Underwriter would otherwise be subject by reason of willful
misfeasance, bad faith or gross negligence in the performance of
its duties or by reason of its reckless disregard of its
obligations and duties under this Agreement.
This indemnity agreement is expressly conditioned upon the Fund's
being notified of any action brought against the Underwriter, its
officers or directors or any such controlling person, which
notification shall be given by letter or by telegram addressed to
the Fund at its principal address in Denver, Colorado and sent to
the Fund by the person against whom such action is brought within
ten (10) days after the summons or other first legal process
shall have been served upon the Underwriter, its officers or
directors or any such controlling person. The failure to notify
the Fund of any such action shall not relieve the Fund from any
liability which it may have to the person against whom such
action is brought by reason of any such alleged untrue statement
or omission otherwise than on account of the indemnity agreement
contained in this paragraph. The Fund shall be entitled to assume
the defense of any suit brought to enforce such claim, demand, or
liability, but in such case the defense shall be conducted by
counsel chosen by the Fund and approved by the Underwriter, which
approval shall not be unreasonably withheld. If the Fund elects
to assume the defense of any such suit and retain counsel
approved by the Underwriter, the defendant or defendants in such
suit shall bear the fees and expenses of an additional counsel
obtained by any of them. Should the Fund elect not to assume the
defense of any such suit, or should the Underwriter not approve
of counsel chosen by the Fund, the Fund will reimburse the
Underwriter, its officers and directors or the controlling person
or persons named as defendant or defendants in such suit, for the
reasonable fees and expenses of any counsel retained by the
Underwriter or them. In addition, the Underwriter shall have the
right to employ counsel to represent it, its officers and
directors and any such controlling person who may be subject to
liability arising out of any claim in respect of which indemnity
may be sought by the Underwriter against the Fund hereunder if in
the reasonable judgment of the Underwriter it is advisable for
the Underwriter, its officers and directors or such controlling
person to be represented by separate counsel, in which event the
reasonable fees and expenses of such separate counsel shall be
borne by the Fund. This indemnity agreement and the Fund's
representations and warranties in this Agreement shall remain
operative and in full force and effect and shall survive the
delivery of any of the Shares as provided in this Agreement. This
indemnity agreement shall inure exclusively to the benefit of the
Underwriter and its successors, the Underwriter's officers and
directors and their respective estates and any such controlling
person and their successors and estates. The Fund shall promptly
notify the Underwriter of the commencement of any litigation or
proceeding against it in connection with the issue and sale of
the Shares.
(b) The Underwriter agrees to indemnify, defend and hold harmless the
Fund, its Directors and any person who controls the Fund within
the meaning of the 1933 Act, from and against any and all claims,
demands, liabilities and expenses (including the cost of
investigating or defending such claims, demands or liabilities
and any attorney fees incurred in connection therewith) which the
Fund, its Directors or any such controlling person may incur
under the Federal securities laws, the common law or otherwise,
but only to the extent that such liability or expense incurred by
the Fund, its Directors or such controlling person resulting from
such claims or demands shall arise out of or be based upon (a)
any alleged untrue statement of a material fact contained in
information furnished in writing by the Underwriter to the Fund
specifically for use in the Registration Statement or any related
Prospectus and/or SAI or shall arise out of or be based upon any
alleged omission to state a material fact in connection with such
information required to be stated in the Registration Statement
or the related Prospectus and/or SAI or necessary to make such
information not misleading and (b) any alleged act or omission on
the Underwriter's part as the Fund's agent that has not been
expressly authorized by the Fund in writing.
Notwithstanding the foregoing, this indemnity agreement, to the
extent that it might require indemnity of the Fund or any
Director or controlling person of the Fund, shall not inure to
the benefit of the Fund or Director or controlling person thereof
unless a court of competent jurisdiction shall determine, or it
shall have been determined by controlling precedent, that such
result would not be against public policy as expressed in the
federal securities laws and in no event shall anything contained
herein be so construed as to protect any Director of the Fund
against any liability to the Fund or the Fund's shareholders to
which the Director would otherwise be subject by reason of
willful misfeasance, bad faith or gross negligence or reckless
disregard of the duties involved in the conduct of his office.
This indemnity agreement is expressly conditioned upon the
Underwriter's being notified of any action brought against the
Fund, its Directors or any such controlling person, which
notification shall be given by letter or telegram addressed to
the Underwriter at its principal office in Denver, Colorado, and
sent to the Underwriter by the person against whom such action is
brought, within ten (10) days after the summons or other first
legal process shall have been served upon the Fund, its Directors
or any such controlling person. The failure to notify the
Underwriter of any such action shall not relieve the Underwriter
from any liability which it may have to the person against whom
such action is brought by reason of any such alleged untrue
statement or omission otherwise than on account of the indemnity
agreement contained in this paragraph. The Underwriter shall be
entitled to assume the defense of any suit brought to enforce
such claim, demand, or liability, but in such case the defense
shall be conducted by counsel chosen by the Underwriter and
approved by the Fund, which approval shall not be unreasonably
withheld. If the Underwriter elects to assume the defense of any
such suit and retain counsel approved by the Fund, the defendant
or defendants in such suit shall bear the fees and expenses of an
additional counsel obtained by any of them. Should the
Underwriter elect not to assume the defense of any such suit, or
should the Fund not approve of counsel chosen by the Underwriter,
the Underwriter will reimburse the Fund, its Directors or the
controlling person or persons named as defendant or defendants in
such suit, for the reasonable fees and expenses of any counsel
retained by the Fund or them. In addition, the Fund shall have
the right to employ counsel to represent it, its Directors and
any such controlling person who may be subject to liability
arising out of any claim in respect of which indemnity may be
sought by the Fund against the Underwriter hereunder if in the
reasonable judgment of the Fund it is advisable for the Fund, its
Directors or such controlling person to be represented by
separate counsel, in which event the reasonable fees and expenses
of such separate counsel shall be borne by the Underwriter. This
indemnity agreement and the Underwriter's representations and
warranties in this Agreement shall remain operative and in full
force and effect and shall survive the delivery of any of the
Shares as provided in this Agreement. This indemnity agreement
shall inure exclusively to the benefit of the Fund and its
successors, the Fund's Directors and their respective estates and
any such controlling person and their successors and estates. The
Underwriter shall promptly notify the Fund of the commencement of
any litigation or proceeding against it in connection with the
issue and sale of the Shares.
12. The Fund will pay or cause to be paid (a) expenses (including the fees
and disbursements of its own counsel) of any registration of the
Shares under the 1933 Act, as amended, (b) expenses incident to the
issuance of the Shares, and (c) expenses (including the fees and
disbursements of its own counsel) incurred in connection with the
preparation, printing and distribution of the Fund's Prospectuses,
SAIs, and periodic and other reports sent to holders of the Shares in
their capacity as such. The Underwriter shall prepare and provide
necessary copies of all sales literature subject to the Fund's
approval thereof.
13. This Agreement shall become effective as of the date it is approved by
a majority vote of the Directors of the Fund, as well as a majority
vote of the Directors who are not "interested persons" (as defined in
the Investment Company Act) of the Fund, and shall continue in effect
for an initial term expiring February 28, 1998, and from year to year
thereafter, but only so long as such continuance is specifically
approved at least annually (a)(i) by a vote of the Directors of the
Fund or (ii) by a vote of a majority of the outstanding voting
securities of the Fund, and (b) by a vote of a majority of the
Directors of the Fund who are not "interested persons," as defined in
the Investment Company Act, of the Fund cast in person at a meeting
for the purpose of voting on this Agreement.
Either party hereto may terminate this Agreement on any date, without
the payment of a penalty, by giving the other party at least 60 days'
prior written notice of such termination specifying the date fixed
therefor. In particular, this Agreement may be terminated at any time,
without payment of any penalty, by vote of a majority of the members
of the Directors of the Fund or by a vote of a majority of the
outstanding voting securities of the Fund on not more than 60 days'
written notice to the Underwriter.
Without prejudice to any other remedies of the Fund provided for in
this Agreement or otherwise, the Fund may terminate this Agreement at
any time immediately upon the Underwriter's failure to fulfill any of
the obligations of the Underwriter hereunder.
14. The Underwriter expressly agrees that, notwithstanding anything to the
contrary herein, or in any applicable law, it will look solely to the
assets of the Fund for any obligations of the Fund hereunder and
nothing herein shall be construed to create any personal liability on
the part of any Director or any shareholder of the Fund.
15. This Agreement shall automatically terminate in the event of its
assignment. In interpreting the provisions of this Section 15, the
definition of "assignment" contained in the Investment Company Act
shall be applied.
16. Any notice under this Agreement shall be in writing, addressed and
delivered or mailed, postage prepaid, to the other party at such
address as such other party may designate for the receipt of such
notice.
17. No provision of this Agreement may be changed, waived, discharged or
terminated orally, but only by an instrument in writing signed by the
Fund and the Underwriter and, if applicable, approved in the manner
required by the Investment Company Act.
18. Each provision of this Agreement is intended to be severable. If any
provision of this Agreement shall be held illegal or made invalid by a
court decision, statute, rule or otherwise, such illegality or
invalidity shall not affect the validity or enforceability of the
remainder of this Agreement.
19. This Agreement and the application and interpretation hereof shall be
governed exclusively by the laws of the State of Colorado.
IN WITNESS WHEREOF, the Fund and the Underwriter have each caused this
Agreement to be executed on its behalf by an officer thereunto duly authorized
and the Underwriter has caused its corporate seal to be affixed as of the day
and year first above written.
INVESCO EMERGING OPPORTUNITY
FUNDS, INC.
ATTEST:
By: /s/ Xxx X. Xxxxxx
------------------------
Xxx X. Xxxxxx
President
/s/ Xxxx X. Xxxxx
---------------------------
Xxxx X. Xxxxx
Secretary
INVESCO FUNDS GROUP, INC.
ATTEST:
By: /s/ Xxxxxx X. Xxxxxx
------------------------
Xxxxxx X. Xxxxxx
Senior Vice President
/s/ Xxxx X. Xxxxx
---------------------------
Xxxx X. Xxxxx
Secretary