Rule 12b-1 Fee Clause Samples
The Rule 12b-1 Fee clause defines the fee that a mutual fund may charge shareholders to cover distribution and marketing expenses. This fee is typically expressed as an annual percentage of the fund's average net assets and is deducted directly from the fund's assets, thereby reducing investor returns. By allowing funds to finance advertising, sales commissions, and other promotional activities, the clause facilitates ongoing marketing efforts while ensuring investors are informed about the costs associated with their investment.
Rule 12b-1 Fee a. The Series will pay Insurance Company a Rule 12b-1 service fee to be accrued daily and paid monthly at an annual rate of 0.25% of the average daily net assets of the Class 4 and Class P2 assets of each Fund attributable to the Contracts for personal services and account maintenance services for Contract owners with investments in Subaccounts corresponding to the Class 4 and Class P2 shares of each Fund so long as the Series’ 12b-1 plans are effective with respect to the Class 4 shares and Class P2 shares of a Fund. Such payments shall be calculated by the Series and be paid by the Series to Insurance Company as soon as practicable after the end of each month and in any event within thirty days.
b. If the Series 12b-1 plans are no longer effective or are no longer applicable to the Funds in the Contracts (the “12b-1 Termination”), AFD, CRMC and the Series shall discuss with Insurance Company, in good faith an alternate fee arrangement. If no new agreement is reached within thirty days after the 12b-1 Termination (or at such later date mutually acceptable to all of the parties), Insurance Company, at its option, may elect to terminate this Agreement, and/or may elect to obtain an order of exemption pursuant to Section 26(b) of the 1940 Act (“Substitution Order”) for the Fund(s) or a vote of Contract owners authorizing redemption and substitution of Fund shares. The Series, AFD and CRMC shall cooperate with Insurance Company in obtaining and implementing any such Substitution Order.
Rule 12b-1 Fee a. The Series will pay Insurance Company a Rule 12b-1 service fee to be accrued daily and paid monthly at an annual rate of 0.25% of the average daily net assets of the Class 4 and P2 assets of each Fund attributable to the Contracts for personal services and account maintenance services for Contractholders with investments in Subaccounts corresponding to the Class 4 and P2 shares of each Fund so long as the Series’ 12b-1 plan is effective with respect to the Class 4 and P2 shares of a Fund. Such payments shall be calculated by the Series and be paid by the Series to Insurance Company as soon as practicable after the end of each month and in any event within thirty days.
b. If the Series 12b-1 plan is no longer effective or is no longer applicable to the Funds in the Contracts (the “12b-1 Termination”), AFD, CRMC and the Series shall discuss with Insurance Company, in good faith, alternate fee arrangements and/or a reallocation of marketing expenses. If no new agreement is reached within thirty days after the 12b-1 Termination (or at such later date mutually acceptable to all of the parties), Insurance Company, at its option, may elect to terminate this Agreement, and/or may elect to pursue an order of exemption pursuant to Section 26(b) of the 1940 Act (“Substitution Order”) for the Fund(s) or a vote of Contractholders authorizing redemption and substitution of Fund shares. The Series, AFD and CRMC shall cooperate with Insurance Company in obtaining and implementing any such Substitution Order.
Rule 12b-1 Fee a. The Series will pay Insurance Company a Rule 12b-1 service fee to be accrued daily and paid monthly at an annual rate of 0.25% of the average daily net assets of the Class 4 and P2 assets of each Fund attributable to the Contracts for personal services and account maintenance services for Contractholders with investments in Subaccounts corresponding to the
Rule 12b-1 Fee a. The Series will pay Insurance Company a Rule 12b-1 service fee to be accrued daily and paid monthly at an annual rate of 0.25% of the average daily net assets of the Class 4 assets of each Fund attributable to the Contracts for personal services and account maintenance services for Contract owners with investments in Subaccounts corresponding to the Class 4 shares of each Fund so long as the Series’ 12b-1 plan is effective with respect to the Class 4 shares of a Fund. Such payments shall be calculated by the Series and be paid by the Series to Insurance Company as soon as practicable after the end of each month and in any event within thirty (30) days.
b. If the Series 12b-1 plan is no longer effective or is no longer applicable to the Funds in the Contracts (the “12b-1 Termination”), AFD, CRMC and the Series shall discuss with Insurance Company, in good faith, an alternate fee arrangement. If no new agreement is reached within thirty (30) days after the 12b-1 Termination (or at such later date mutually acceptable to all of the parties), Insurance Company, at its option, may elect to terminate this Agreement, and/or may elect to obtain an order of exemption pursuant to Section 26(b) of the 1940 Act (“Substitution Order”) for the Fund(s) or a vote of Contract owners authorizing redemption and substitution of Fund shares. The Series, AFD and CRMC shall cooperate with Insurance Company in obtaining and implementing any such Substitution Order.
Rule 12b-1 Fee a. The Series will pay Insurance Company a Rule 12b-1 service fee to be accrued daily and paid monthly at an annual rate of0.25o/o of the average daily net assets of the Class 2, 4 and P2 assets of each Fund attributable to the Contracts for personal services and account maintenance services for Contract owners with investments in Subaccounts corresponding to the Class 2, 4 and P2 shares of each Fund so long as the Series' 12b-1 plan is effective with respect to the Class 2, 4 and P2 shares of a Fund. Such payments shall be calculated by the Series and be paid by the Series to Insurance Company as soon as practicable after the end of each month and in any event within thirty days.
b. If the Series 12b-l plan is no longer effective or is no longer applicable to the Funds in the Contracts (the "12b-l Termination"), AFD, CRMC and the Series shall discuss with Insurance Company, in good faith, an alternate fee arrangement. If no new agreement is reached within thirty days after the 12b-1 Termination (or at such later date mutually acceptable to all of the parties), Insurance Company, at its option, may elect to terminate this Agreement, and/or may elect to obtain an order of exemption pursuant to Section 26(b) of the 1940 Act ("Substitution Order") for the Fund(s) or a vote of Contract owners authorizing redemption and substitution of Fund shares. The Series, AFD and CRMC shall cooperate with Insurance Company in obtaining and implementing any such Substitution Order.
Rule 12b-1 Fee. Class A shares may be subject to Rule 12b-1 fees as approved from time to time by the Trustees and set forth in the Trust’s Prospectus, relevant portions of which are incorporated herein by reference. All other terms and conditions with respect to Rule 12b-1 fees shall be governed by the Rule 12b-1 Plan adopted by the Trust with respect to such fees and Rule 12b-1 of the 1940 Act. The Rule 12b-1 fees will be paid to the Trust’s distributor as compensation for services provided and expenses incurred in connection with the offering and sale of Class A shares of the Trust, which may include, without limitation, payment by the Trust’s distributor of all or a portion of the Rule 12b-1 fees to financial intermediaries, plan fiduciaries and investment professionals (“Service Providers”) for providing services in connection with the offering and sale of Class A shares, interest and other financing costs, and such other distribution-related activities identified in Rule 12b-1, as it may be amended from time to time. The Trust, on behalf of the applicable Portfolio, will make monthly payments to the Trust’s distributor under the Rule 12b-1 Plan based on the average net asset value of Class A shares.