Common use of Redemptions; Cancellation Clause in Contracts

Redemptions; Cancellation. Redemptions or repurchases of shares will be made at the net asset value of such shares, less any applicable deferred sales or redemption charges, in accordance with the applicable prospectuses. As agent, Bank may sell shares for the account of the record owner to the Funds at the repurchase price then currently in effect for such shares and may charge the owner a fair fee for handling the transaction. If on a redemption which Bank has ordered, instructions in proper form, including outstanding certificates, are not received within the time customary or the time required by law, the redemption may be canceled forthwith without any responsibility or liability on the part of FTDI or any Fund, or at its option FTDI may buy the shares redeemed on behalf of the Fund, in which latter case it may hold Bank responsible for any loss to the Fund or loss of profit suffered by FTDI resulting from Bank's failure to settle the redemption.