Distribution and Service Plans. 5.1 The Fund is subject to a plan adopted under Rule 18f-3 under the 1940 Act pursuant to which, as described in the current prospectus of each Portfolio, the Fund may sell multiple classes of its shares of each Portfolio with a varying combination of distribution fees, service fees, exchange features, conversion rights, voting rights, expense allocations and investment requirements.
5.2 Should the Company wish to participate in the Fund's distribution plan with respect to a class of shares of a Portfolio of the Fund pursuant to Rule 12b-1 (the "Rule 12b-1 Plan") under the 1940 Act, or the Fund's service plan (the "Service Plan"), each as described in the current prospectus of each Portfolio, with respect to a class of shares of a Portfolio of the Fund, it is understood that the Company must be approved by the Board of Trustees of the Fund. Pursuant to the Rule 12b-1 Plan and the Service Plan, the Underwriter is authorized to remit payments at rates specified in the respective plans with respect to the net asset value of shares maintained by the Company for distribution-related services and/or personal services to Contract owners accounts provided. If the Company wishes to participate in these plans and receive the aforementioned remittance, the Company must enter into a separate agreement specifically regarding these plans.
5.3 The Company's agrees that it will comply with Rule 18f-3 under the 1940 Act, with respect to when the Company may appropriately make available the various classes of shares of the Portfolios of the Fund .
Distribution and Service Plans. The Fund has adopted a Service Plan for Class A shares and Distribution and Service Plans for Class B, Class C and Class N shares under Rule 12b-1 of the Investment Company Act. Under those plans the Fund pays the Distributor for all or a portion of its costs incurred in connection with the distribution and/or servicing of the shares of the particular class. Each plan has been approved by a vote of the Board of Trustees, including a majority of the Independent Trustees12, cast in person at a meeting called for the purpose of voting on that plan. Each plan has also been approved by the holders of a "majority" (as defined in the Investment Company Act) of the shares of the applicable class. The shareholder votes for the plans were cast by the Manager as the sole initial holder of each class of shares of the Fund. Under the plans, the Manager and the Distributor may make payments to affiliates and in their sole discretion, from time to time, may use their own resources (at no direct cost to the Fund) to make payments to brokers, dealers or other financial institutions for distribution and administrative services they perform. The Manager may use its profits from the advisory fee it receives from the Fund. In their sole discretion, the Distributor and the Manager may increase or decrease the amount of payments they make from their own resources to plan recipients. Unless a plan is terminated as described below, the plan continues in effect from year to year but only if the Fund's Board of Trustees and its Independent Trustees specifically vote annually to approve its continuance. Approval must be by a vote cast in person at a meeting called for the purpose of voting on continuing the plan. A plan may be terminated at any time by the vote of a majority of the Independent Trustees or by the vote of the holders of a "majority" (as defined in the Investment Company Act) of the outstanding shares of that class. The Board of Trustees and the Independent Trustees must approve all material amendments to a plan. An amendment to increase materially the amount of payments to be made under a plan must be approved by shareholders of the class affected by the amendment. Because Class B shares of the Fund automatically convert into Class A shares after six years, the Fund must obtain the approval of both Class A and Class B shareholders for a proposed material amendment to the Class A Plan that would materially increase payments under the Plan. That approval must be by a "ma...
Distribution and Service Plans. 10 ARTICLE VI Diversification...............................................11
Distribution and Service Plans. The Distributor. Under its General Distributor's Agreement with the Fund, the Distributor acts as the Fund's principal underwriter in the continuous public offering of the Fund's classes of shares. The Distributor bears the expenses normally attributable to sales, including advertising and the cost of printing and mailing prospectuses, other than those furnished to existing shareholders. The Distributor is not obligated to sell a specific number of shares. Expenses normally attributable to sales are borne by the Distributor.
Distribution and Service Plans. 5.1 The Fund is subject to a plan adopted under Rule 18f-3 under the 1940 Act pursuant to which, as described in the current prospectus of each Fund, the Fund may sell multiple classes of its shares with a varying combination of distribution fees, service fees, exchange features, conversion rights, voting rights, expense allocations and investment requirements.
5.2 Should the Company wish to participate in the Fund's distribution plan with respect to a class of shares of the Fund pursuant to Rule 12b-1 (the "Rule 12b-1 Plan") under the 1940 Act, or the Fund's service plan (the "Service Plan"), each as described in the current prospectus of each Fund, with respect to a class of shares of the Fund, it is understood that the Company must be approved by the Board of Trustees of the Fund. Pursuant to the Rule 12b-1 Plan and the Service Plan, the Underwriter is authorized to remit payments at rates specified in the respective plans with respect to the net asset value of shares maintained by the Company for distribution-related services and/or personal services to Contract owners accounts provided. If the Company wishes to participate in these plans and receive the aforementioned remittance, the Company must enter into a separate agreement specifically regarding these plans. Pursuant to these aforementioned separate agreements, for Contracts issued on or after May 1, 2003, the Company or Guardian Investor Services LLC (the "Broker-Dealer"), as appropriate, will receive a total annual fee of [information omitted as confidential] of the value of each Fund's assets in the Accounts as specified in Schedule A. For Contracts issued before May 1, 2003, the Company or the Broker-Dealer, as appropriate, will receive a total annual fee of [information omitted as confidential] of the value of each Fund's assets in the Accounts as specified in Schedule A. The foregoing fee will be paid to the Company or the Broker-Dealer, as appropriate, on a quarterly basis, and in this regard payment of such fee will be made to the Company or the Broker-Dealer within 30 days following the end of each calendar quarter.
5.3 The Company's acceptance of this Agreement constitutes a representation that it will adopt policies and procedures to comply with Rule 18f-3 under the 1940 Act, with respect to when the Company may appropriately make available the various classes of shares of the Fund and that it will make available such shares only in accordance therewith.
Distribution and Service Plans. Diversification............................................................................
Distribution and Service Plans. 48 Performance of the Fund..........................................................................................51 About Your Account How to Buy Shares................................................................................................57
Distribution and Service Plans. The Distributor. Under its General Distributor's Agreement with the Fund, the Distributor, whose primary address is X.X. Xxx 0000, Xxxxxx, XX 00000, acts as the Fund's principal underwriter in the continuous public offering of the Fund's Class A, Class B and Class C shares. The Distributor bears the expenses normally attributable to sales, including advertising and the cost of printing and mailing Prospectuses, other than those furnished to existing shareholders. The Distributor is not obligated to sell a specific number of shares. Expenses normally attributable to sales are borne by the Distributor. They exclude payments under the Distribution and Service Plans but include advertising and the cost of printing and mailing prospectuses (other than those furnished to existing shareholders). The sales charge and concessions paid to, or retained by, the Distributor from the sale of shares during the Fund's three most recent fiscal years, and the contingent deferred sales charges retained by the Distributor on the redemption of shares for the most recent fiscal year are shown in the tables below: ------------- ------------------ ------------------- -------------------- ------------------- -------------------
Distribution and Service Plans. The Distributor. Under its General Distributor's Agreement with the Fund, the Distributor acts as the Fund's principal underwriter in the continuous public offering of the different classes of shares of the Fund. The Distributor bears the expenses normally attributable to sales, including advertising and the cost of printing and mailing prospectuses. Other than those furnished to existing shareholders. The Distributor is not obligated to sell a specific number of shares. Expenses normally attributable to sales are borne by the Distributor. The sales charges and concessions paid to, or retained by, the Distributor from the sale of shares during the Fund's three most recent fiscal years, and the contingent deferred sales charges retained by the Distributor on the redemption of shares for the most recent fiscal year are shown in the tables below: ------------- ------------------ ------------------- -------------------- ------------------- -------------------
Distribution and Service Plans. 5.1 The Fund is subject to a plan adopted under Rule l8f-3 under the 1940 Act pursuant to which, as described in the current prospectus of each Portfolio, the Fund may sell multiple classes of its shares of each Portfolio with a varying combination of distribution fees, service fees, exchange features, conversion rights, voting rights, expense allocations and investment requirements.
5.2 Should the Company wish to participate in the Fund's distribution plan with respect to a class of shares of a Portfolio of the Fund pursuant to Rule 12b-l (the "Rule 12b-l Plan") under the 1940 Act, or the Fund's service plan (the "Service Plan"), each as described in the current prospectus of each Portfolio, with respect to a class of shares of a Portfolio of the Fund, it is understood that the Company must be approved by the Board of Trustees of the Fund. Pursuant to the Rule 12b-l Plan and the Service Plan, the Underwriter is authorized to remit payments at rates specified in the respective plans with respect to the net asset value of shares maintained by the Company for distribution-related services and/or personal services to Contract owners accounts provided. If the Company wishes to participate in these plans and receive the aforementioned remittance, the Company must enter into a separate agreement specifically regarding these plans.
5.3 The Company's acceptance of this Agreement constitutes a representation that it will adopt policies and procedures to comply with Rule 18f-3 under the 1940 Act, with respect to when the Company may appropriately make available the various classes of shares of the Portfolios of the Fund and that it will make available such shares only in accordance therewith.
