Exhibit (e)(3)
B
FORESIDE DISTRIBUTION SERVICES, L.P. DISTRIBUTOR
(OR SUBSEQUENT AFFILIATED DISTRIBUTOR)
DEALER AGREEMENT
Re: GENDEX FUND
Ladies and Gentlemen:
As the distributor of the shares ("Shares") of each investment company portfolio
("Fund"), of the investment company or companies covered hereunder
(collectively, "Company") which may be amended by us from time to time, Foreside
Distribution Services, L.P. ("Distributor") hereby invites you to participate in
the selling group on the following terms and conditions. In this letter, the
terms "we," "us," and similar words refer to the Distributor, and the terms
"you," "your," and similar words refer to the dealer executing this agreement,
including its associated persons.
1. DEALER. You hereby represent that you are a broker-dealer properly
registered and qualified under all applicable federal, state and local laws
to engage in the business and transactions described in this agreement, and
that you are a member in good standing of the Financial Industry Regulatory
Authority ("FINRA") (formerly the National Association of Securities
Dealers, Inc. ("NASD") and the Securities Investor Protection Corporation
("SIPC"). You agree that it is your responsibility to determine the
suitability of any Fund Shares as investments for your customers, and that
we have no responsibility for such determination. You further agree to
maintain all records required by Applicable Laws (as defined below) or that
are otherwise reasonably requested by us relating to your transactions in
Fund Shares. In addition, you agree to notify us immediately in the event
your status as a member of the NASD/FINRA or SIPC changes.
2. QUALIFICATION OF SHARES. The Fund will make available to you a list of the
states or other jurisdictions in which Fund Shares are registered for sale
or are otherwise qualified for sale, which may be revised by the Fund from
time to time. You will make offers of Shares to your customers only in
those states, and you will ensure that you (including your associated
persons) are appropriately licensed and qualified to offer and sell Shares
in any state or other jurisdiction that requires such licensing or
qualification in connection with your activities.
3. ORDERS. All orders you submit for transactions in Fund Shares shall reflect
orders received from your customers or shall be for your account for your
own bona fide investment, and you will date and time-stamp your customer
orders and forward them promptly each day and in any event prior to the
time required by the applicable Fund prospectus (the "Prospectus," which
for purposes of this agreement includes the Statement of Additional
Information incorporated therein). As agent for your customers, you shall
not withhold placing customers' orders for any Shares so as to profit
yourself or your Customer as a result of such withholding. You are hereby
authorized to: (i) place your orders directly with the relevant investment
company (the "Company") for the purchase of Shares and (ii) tender Shares
directly to the Company for redemption, in each case subject to the terms
and conditions set forth in the Prospectus and any operating procedures and
policies established by us or the Fund (directly or through its Transfer
Agent) from time to time. All purchase orders you submit are subject to
acceptance or rejection, and we reserve the right to
08/01/07
suspend or the limit the sale of Shares. You are not authorized to make any
representations concerning Shares of any Fund except such representations
as are contained in the Prospectus and in such supplemental written
information that the Fund or the Distributor (acting on behalf of the Fund)
may provide to you with respect to a Fund. All orders that are accepted for
the purchase of Shares shall be executed at the next determined public
offering price per share (i.e., the net asset value per share plus the
applicable sales load, if any) and all orders for the redemption of Shares
shall be executed at the next determined net asset value per share and
subject to any applicable redemption fee, in each case as described in the
Prospectus.
4. COMPLIANCE WITH APPLICABLE LAWS; DISTRIBUTION OF PROSPECTUS AND REPORTS;
CONFIRMATIONS. In connection with its respective activities hereunder, each
party agrees to abide by the Conduct Rules of the NASD/FINRA and all other
rules of self-regulatory organizations of which the relevant party is a
member, as well as all laws, rules and regulations, including federal and
state securities laws, that are applicable to the relevant party (and its
associated persons) from time to time in connection with its activities
hereunder ("Applicable Laws"). You are authorized to distribute to your
customers the current Prospectus, as well as any supplemental sales
material received from the Fund or the Distributor (acting on behalf of the
Fund) (on the terms and for the period specified by us or stated in such
material). You are not authorized to distribute, furnish or display any
other sales or promotional material relating to a Fund without our written
approval, but you may identify the Funds in a listing of mutual funds
available through you to your customers. Unless otherwise mutually agreed
in writing, you shall deliver or cause to be delivered to each customer who
purchases shares of any Funds from or through you, copies of all annual and
interim reports, proxy solicitation materials, and any other information
and materials relating to such Funds and prepared by or on behalf of the
Funds or us. If required by Rule 10b-10 under the Securities Exchange Act
or other Applicable Laws, you shall send or cause to be sent confirmations
or other reports to your customers containing such information as may be
required by Applicable Laws.
5. SALES CHARGES AND CONCESSIONS. On each purchase of Shares by you (but not
including the reinvestment of any dividends or distributions), you shall be
entitled to receive such dealer allowances, concessions, sales charges or
other compensation, if any, as may be set forth in the Prospectus. Sales
charge reductions and discounts may be available as provided in the
Prospectus. To obtain any such reductions, the Company or Distributor must
be notified promptly when a transaction or transactions would qualify for
the reduced charge and you must submit information that is sufficient (in
the discretion of the Company and/or us) to substantiate qualification
therefor. The foregoing shall include advising us of any Letter of Intent
signed by your customer or of any Right of Accumulation available to such
customer. If you fail to so advise us, you will be liable for the return of
any commissions plus interest thereon. Rights of accumulation (including
rights under a Letter of Intent) are available, if at all, only as set
forth in the Prospectus, and you authorize any adjustment to your account
(and will be liable for any refund) to the extent any allowance, discount
or concession is made and the conditions therefor are not fulfilled. Each
price is always subject to confirmation, and will be based upon the net
asset value next determined after receipt of an order that is in good form.
If any Shares purchased are tendered for redemption or repurchased by the
Fund for any reason within seven business days after confirmation of the
purchase order for such Shares, you agree to promptly refund the full sales
load or other concession and you will forfeit the right to receive any
compensation allowable or payable to you on such Shares. We reserve the
right to waive sales charges. You represent to us that you are eligible to
receive any such sales charges and concessions paid to you by us under this
section.
6. TRANSACTIONS IN FUND SHARES. With respect to all orders you place for the
purchase of Fund
Shares, unless otherwise agreed, settlement shall be made with the Company
within three (3) business days after acceptance of the order. If payment is
not so received or made, the transaction may be cancelled. In this event or
in the event that you cancel the trade for any reason, you agree to be
responsible for any loss resulting to the Funds or to us from your failure
to make payments as aforesaid. You shall not be entitled to any gains
generated thereby. You also assume responsibility for any loss to a Fund
caused by any order placed by you on an "as-of" basis subsequent to the
trade date for the order, and will immediately pay such loss to the Fund
upon notification or demand. Such orders shall be acceptable only as
permitted by the Company and shall be subject to the Company's policies
pertaining thereto, which may include receipt of an executed Letter of
Indemnity in a form acceptable to the Fund and /or to us prior to the
Company's acceptance of any such order.
7. ACCURACY OF ORDERS; CUSTOMER SIGNATURES. You shall be responsible for the
accuracy, timeliness and completeness of any orders transmitted by you on
behalf of your customers by any means, including wire or telephone. In
addition, you agree to guarantee the signatures of your customers when such
guarantee is required by the Company and you agree to indemnify and hold
harmless all persons, including us and the Funds' transfer agent, from and
against any and all loss, cost, damage or expense suffered or incurred in
reliance upon such signature guarantee.
8. INDEMNIFICATION. You agree to indemnify us and hold us harmless from and
against any claims, liabilities, expenses (including reasonable attorneys
fees) and losses resulting from (i) any failure by you to comply with
Applicable Laws in connection with activities performed under this
agreement, or (ii) any unauthorized representation made by you concerning
an investment in Fund Shares. We agree to indemnify you and hold you
harmless from and against any claims, liabilities, expenses (including
reasonable attorneys fees) and losses resulting from (i) any failure by us
to comply with Applicable Laws in connection with our activities as
Distributor under this agreement, or (ii) any untrue statement of a
material fact set forth in a Fund's Prospectus or supplemental sales
material provided to you by us (and used by you on the terms and for the
period specified by us or stated in such material), or omission to state a
material fact required to be stated therein to make the statements therein
not misleading; provided, however, that the indemnification in this clause
(ii) shall be limited to indemnification actually received by us as
Distributor from the Funds, except to the extent that the relevant claims,
liabilities, expenses and losses result from our own failure to exercise
reasonable care in the preparation or review of the Prospectus or such
other materials.
9. MULTI-CLASS DISTRIBUTION ARRANGEMENTS. You understand and acknowledge that
the Funds may offer Shares in multiple classes, and you represent and
warrant that you have established compliance procedures designed to ensure
that your customers are made aware of the terms of each available class of
Fund Shares, to ensure that each customer is offered only Shares that are
suitable investments for him or her, to ensure that each customer is
availed of the opportunity to obtain sales charge break points as detailed
in the Prospectus, and to ensure proper supervision of your representatives
in recommending and offering the Shares of multiple classes to your
customers.
10. ANTI-MONEY LAUNDERING COMPLIANCE. Each party to this agreement acknowledges
that it is a financial institution subject to the USA Patriot Act of 2001
and the Bank Secrecy Act (collectively, the "AML Acts"), which require,
among other things, that financial institutions adopt compliance programs
to guard against money laundering. Each party represents and warrants that
it is in compliance and will continue to comply with the AML Acts and
applicable rules thereunder ("AML Laws"), including NASD/FINRA Conduct Rule
3011, in all relevant respects. The parties agree to cooperate with one
another to satisfy AML due diligence policies of the Company and
Distributor,
which may include annual compliance certifications and periodic due
diligence reviews and/or other requests deemed necessary or appropriate by
us to ensure compliance with AML Laws.
11. PRIVACY. The parties agree that any Non-public Personal Information, as the
term is defined in Regulation S-P ("Reg S-P") of the Securities and
Exchange Commission, that may be disclosed hereunder is disclosed for the
specific purpose of permitting the other party to perform the services set
forth in this agreement. Each party agrees that, with respect to such
information, it will comply with Reg S-P and that it will not disclose any
Non-Public Personal Information received in connection with this agreement
to any other party, except to the extent required to carry out the services
set forth in this agreement or as otherwise permitted by law.
12. DISTRIBUTION AND/OR SERVICE FEES. Subject to and in accordance with the
terms of each Prospectus and the Distribution Plan and/or Service Plan, if
any, adopted by resolution of the Board pursuant to Rule 12b-1 under the
Investment Company Act of 1940 (the "1940 Act"), we may pay financial
institutions with which we have entered into an agreement in substantially
the form annexed hereto as Appendix A or such other form as may be approved
from time to time by the Board (the "Fee Agreement") such fees as may be
determined in accordance with such Fee Agreement, for distribution,
shareholder or administrative services, as described therein.
13. ORDER PROCESSING. In accordance with NASD/FINRA Notice to Members 03-50
(reminding members of their responsibility to ensure that they have in
place policies and procedures reasonably designed to detect and prevent the
occurrence of mutual fund transactions that would violate Rule 22c-1 under
the 1940 Act, NASD/FINRA Conduct Rule 2110 and other applicable rules and
regulations), you represent that you have reviewed your policies and
procedures to ensure that they are adequate with respect to preventing
violations of law and prospectus requirements related to timely
order-taking and market timing activity, and you hereby provide the
confirmation set forth on Appendix B hereto. You represent that you will be
responsible for the collection and payment to the Company of any Redemption
Fees based upon the terms outlined in the Company's prospectus.
14. AMENDMENTS. This agreement may be amended from time to time by the
following procedure. We will mail a copy of the amendment to you at your
address shown below or as registered as your main office from time to time
with the FINRA. If you do not object to the amendment within fifteen (15)
days after its receipt, the amendment will become a part of this agreement.
Your objection must be in writing and be received by us within such fifteen
(15) days. All amendments shall be in writing and except as provided above
shall be executed by both parties.
15. TERMINATION. This agreement may be terminated by either party, without
penalty, upon ten days' prior written notice to the other party. Any
unfulfilled obligations hereunder, and all obligations of indemnification,
shall survive the termination of this agreement.
16. ASSIGNMENT. This agreement shall not be assigned, except to affiliates,
provided, however, that Dealer may not assign this agreement without our
prior written consent. The compensation paid to Dealer pursuant to Section
12 of this agreement shall immediately terminate upon any assignment of
this agreement, until and unless a new agreement is executed.
17. NOTICES. All notices and communications to us shall be sent to us at 000
Xxxxxx Xxxxxx, 00xx Xxxxx, Xxxxxx, Xxxxxxxxxxxxx 00000, Attn: Broker-Dealer
Compliance Department, or at such other address as we may designate in
writing. All notices and other communication to you shall be sent you at
the address set forth below or at such other address as you may designate
in writing. All notices required or permitted to be given pursuant to this
agreement shall be given in writing and delivered by personal delivery, by
postage prepaid mail, or by facsimile or similar
means of same-day delivery, with a confirming copy by mail.
18. AUTHORIZATION. Each party represents to the other that all requisite
corporate proceedings have been undertaken to authorize it to enter into
and perform under this agreement as contemplated herein, and that the
individual that has signed this agreement below on its behalf is a duly
elected officer that has been empowered to act for and on behalf of such
party with respect to the execution of this agreement.
19. MISCELLANEOUS. This agreement supersedes any other agreement between the
parties with respect to the offer and sale of Fund Shares and other matters
covered herein. The invalidity or unenforceability of any term or provision
hereof shall not affect the validity or enforceability of any other term or
provision hereof. This agreement may be executed in any number of
counterparts, which together shall constitute one instrument. This
agreement shall be governed by and construed in accordance with the laws of
the Commonwealth of Massachusetts without regard to conflict of laws
principles, and shall bind and inure to the benefit of the parties hereto
and their respective successors and assigns.
If the foregoing corresponds with your understanding of our agreement, please
sign this document and the accompanying copies thereof in the appropriate space
below and return the same to us, whereupon this agreement shall be binding upon
each of us.
FORESIDE DISTRIBUTION SERVICES, L. P.
(OR SUBSEQUENT AFFILIATED DISTRIBUTOR)
By:
---------------------------------
Insert Name:
------------------------
Title:
------------------------------
Date:
-------------------------------
Agreed to and accepted:
[Dealer]
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By:
---------------------------------
Insert Name:
------------------------
Title:
------------------------------
Date:
-------------------------------
Address of Dealer:
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APPENDIX A
GENDEX FUND
FORESIDE DISTRIBUTION SERVICES, L.P. , DISTRIBUTOR
(OR SUBSEQUENT AFFILIATED DISTRIBUTOR)
DISTRIBUTION/SERVICE FEE AGREEMENT
Ladies and Gentlemen:
This Fee Agreement ("Agreement") confirms our understanding and agreement with
respect to Rule 12b-1 payments to be made to you in accordance with the Dealer
Agreement between you and us (the "Dealer Agreement"), which entitles you to
serve as a selected dealer of certain Funds for which we serve as Distributor.
Capitalized terms used but not defined herein shall have the respective meanings
set forth in the Dealer Agreement.
1. From time to time during the term of this Agreement, we may make payments to
you pursuant to one or more distribution and service plans (the "Plans") adopted
by certain of the Funds pursuant to Rule 12b-1 of the 1940 Act. You agree to
furnish sales and marketing services and/or shareholder services to your
customers who invest in and own Fund Shares, including, but not limited to,
answering routine inquiries regarding the Funds, processing shareholder
transactions, and providing any other shareholder services not otherwise
provided by a Fund's transfer agent. With respect to such payments to you, we
shall have only the obligation to make payments to you after, for as long as,
and to the extent that, we receive from the Fund an amount equivalent to the
amount payable to you. The Fund or us, as Distributor, each reserves the right,
without prior notice, to suspend or eliminate the payment of such Rule 12b-1
Plan payments or other dealer compensation by amendment, sticker or supplement
to the then-current Prospectus of the Fund.
2. Any such fee payments shall reflect up to the maximum amounts as described in
a Fund's Prospectus. Payments will be based on the dollar amount of Fund Shares
which are owned by those customers of yours whose records, as maintained by the
Funds or the transfer agent, designate your firm as the customer's dealer of
record. No such fee payments will be payable to you with respect to shares
purchased by or through you and redeemed by the Funds within seven business days
after the date of confirmation of such purchase. You represent that you are
eligible to receive any such payments made to you under the Plans.
3. You agree that all activities conducted under this Agreement will be
conducted in accordance with the Plans, as well as all applicable state and
federal laws, including the Investment Company Act of 1940, the Securities
Exchange Act of 1934, the Securities Act of 1933 and any applicable rules of the
NASD/FINRA.
4. Upon request, on a quarterly basis, you shall furnish us with a written
report describing the amounts payable to you pursuant to this Agreement and the
purpose for which such amounts were expended. We shall provide quarterly reports
to the Funds' Board of amounts expended pursuant to the Plans and the purposes
for which such expenditures were made. You shall furnish us with such other
information as shall reasonably be requested by us in connection with our
reports to the Board with respect to the fees
paid to you pursuant to this Agreement.
5. This Agreement shall continue in effect until terminated in the manner
prescribed below or as provided in the Plans or in Rule 12b-1. This Agreement
may be terminated, with respect to one or more Funds, without penalty, by either
of us, upon ten days' prior written notice to the other party. In addition, this
Agreement will be terminated with respect to any Fund upon a termination of the
relevant Plan or the Dealer Agreement, if a Fund closes to new investments, or
if our Distribution Agreement with the Funds terminates.
6. This Agreement may be amended by us from time to time by the following
procedure. We will mail a copy of the amendment to you at your address shown
below or as registered from time to time with the FINRA. If you do not object to
the amendment within fifteen (15) days after its receipt, the amendment will
become a part of this Agreement. Your objection must be in writing and be
received by us within such fifteen days.
7. This Agreement shall become effective as of the date when it is executed and
dated by us below. This Agreement and all the rights and obligations of the
parties hereunder shall be governed by and construed under the laws of the
Commonwealth of Massachusetts, without regard to conflict of laws principles.
8. All notices and other communications shall be given as provided in the Dealer
Agreement.
If the foregoing is acceptable to you, please sign this Agreement in the space
provided below and return the same to us.
FORESIDE DISTRIBUTION SERVICES, L.P.
(OR SUBSEQUENT AFFILIATED Agreed to and Accepted:
DISTRIBUTOR) Name and Address of Dealer firm:
By:
--------------------------------- ----------------------------------------
Insert Name:
------------------------
Title: By:
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Date: Insert Name:
------------------------------- ---------------------------
Title:
---------------------------------
Date:
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APPENDIX B
TO: FORESIDE DISTRIBUTION SERVICES, L.P
(OR SUBSEQUENT AFFILIATED DISTRIBUTOR)
AS DISTRIBUTOR OF GENDEX FUND
Confirmation Pursuant to NASD/FINRA Notice to Members 03-50
As a selected dealer of the Shares of the above-referenced Funds, and pursuant
to the terms of our Dealer Agreement, we hereby certify to you that we will at
all times comply with (i) the provisions of our Dealer Agreement related to
compliance with all applicable rules and regulations; and (ii) the terms of each
registration statement and prospectus for the Funds.
We have performed a review of our internal controls and procedures to ensure
that such controls and procedures are adequate to (i) prevent the submission of
any order received after the deadline for submission of orders in each day that
are eligible for pricing at that day's net asset value per share ("NAV"); and
(ii) prevent the purchase of Fund Shares by an individual or entity whose stated
objectives are not consistent with the stated policies of a Fund in protecting
the best interests of longer-term investors, particularly where such
customer-investor may be seeking market timing or arbitrage opportunities
through such purchase.
FORESIDE DISTRIBUTION SERVICES, L.P., , DISTRIBUTOR
(OR SUBSEQUENT AFFILIATED DISTRIBUTOR)
SELLING GROUP MEMBER AGREEMENT
Re: GENDEX FUND
Ladies and Gentlemen:
As the distributor of the shares ("Shares") of each investment company portfolio
("Fund"), of the investment company or companies covered hereunder
(collectively, "Company") which may be amended by us from time to time, Foreside
Distribution Services, L.P. ("Distributor") hereby invites you to participate in
the selling group on the following terms and conditions. In this letter, the
terms "we," "us," and similar words refer to the Distributor, and the terms
"you," "your," and similar words refer to the intermediary executing this
agreement, including its associated persons.
1. SELLING GROUP MEMBER. You hereby represent that you are properly qualified
under all applicable federal, state and local laws to engage in the
business and transactions described in this agreement. In addition, you
agree to comply with the rules of the Financial Industry Regulatory
Authority ("FINRA") (formerly the National Association of Securities
Dealers, Inc. ("NASD")) as if they were applicable to you in connection
with your activities under this agreement. You agree that it is your
responsibility to determine the suitability of any Fund Shares as
investments for your customers, and that we have no responsibility for such
determination. You further agree to maintain all records required by
Applicable Laws (as defined below) or that are otherwise reasonably
requested by us relating to your transactions in Fund Shares.
2. QUALIFICATION OF SHARES. The Fund will make available to you a list of the
states or other jurisdictions in which Fund Shares are registered for sale
or are otherwise qualified for sale, which may be revised by the Fund from
time to time. You will make offers of Shares to your customers only in
those states, and you will ensure that you (including your associated
persons) are appropriately licensed and qualified to offer and sell Shares
in any state or other jurisdiction that requires such licensing or
qualification in connection with your activities.
3. ORDERS. All orders you submit for transactions in Fund Shares shall reflect
orders received from your customers or shall be for your account for your
own bona fide investment, and you will date and time-stamp your customer
orders and forward them promptly each day and in any event prior to the
time required by the applicable Fund prospectus (the "Prospectus," which
for purposes of this agreement includes the Statement of Additional
Information incorporated therein). As agent for your customers, you shall
not withhold placing customers' orders for any Shares so as to profit
yourself (or your customers) as a result of such withholding. You are
hereby authorized to: (i) place your orders directly with the relevant
investment company (the "Company") for the purchase of Shares and (ii)
tender Shares directly to the Company for redemption, in each case subject
to the terms and conditions set forth in the Prospectus and any operating
procedures and policies established by us or the Fund (directly or through
its Transfer Agent) from time to time. All purchase orders you submit are
subject to acceptance or rejection, and we reserve the right to suspend or
limit the sale of Shares. You are not authorized to make any
representations concerning Shares of any Fund except such representations
as are contained in the Prospectus and in such supplemental written
information that the Fund or the Distributor (acting on behalf of the Fund)
may provide to you with respect to a Fund. All orders that are accepted for
the purchase of Shares shall be executed at the next determined public
offering price per share (i.e.,
the net asset value per share plus the applicable sales load, if any) and
all orders for the redemption of Shares shall be executed at the next
determined net asset value per share and subject to any applicable
redemption fee, in each case as described in the Prospectus.
4. COMPLIANCE WITH APPLICABLE LAWS; DISTRIBUTION OF PROSPECTUS AND REPORTS;
CONFIRMATIONS. In connection with its respective activities hereunder, each
party agrees to abide by the Conduct Rules of the NASD/FINRA and all other
rules of self-regulatory organizations of which the relevant party is a
member, as well as all laws, rules and regulations, including federal and
state securities laws, that are applicable to the relevant party (and its
associated persons) from time to time in connection with its activities
hereunder ("Applicable Laws"). You are authorized to distribute to your
customers the current Prospectus, as well as any supplemental sales
material received from the Fund or the Distributor (acting on behalf of the
Fund) (on the terms and for the period specified by us or stated in such
material). You are not authorized to distribute, furnish or display any
other sales or promotional material relating to a Fund without our written
approval, but you may identify the Funds in a listing of mutual funds
available through you to your customers. Unless otherwise mutually agreed
in writing, you shall deliver or cause to be delivered to each customer who
purchases shares of any Funds from or through you, copies of all annual and
interim reports, proxy solicitation materials, and any other information
and materials relating to such Funds and prepared by or on behalf of the
Funds or us. If required by Rule 10b-10 under the Securities Exchange Act
or other Applicable Laws, you shall send or cause to be sent confirmations
or other reports to your customers containing such information as may be
required by Applicable Laws.
5. SALES CHARGES AND CONCESSIONS. On each purchase of Shares by you (but not
including the reinvestment of any dividends or distributions), you shall be
entitled to receive such dealer allowances, concessions, sales charges or
other compensation, if any, as may be set forth in the Prospectus. Sales
charge reductions and discounts may be available as provided in the
Prospectus. To obtain any such reductions, the Company or Distributor must
be notified promptly when a transaction or transactions would qualify for
the reduced charge and you must submit information that is sufficient (in
the discretion of the Company and/or us) to substantiate qualification
therefor. The foregoing shall include advising us of any Letter of Intent
signed by your customer or of any Right of Accumulation available to such
customer. If you fail to so advise us, you will be liable for the return of
any commissions plus interest thereon. Rights of accumulation (including
rights under a Letter of Intent) are available, if at all, only as set
forth in the Prospectus, and you authorize any adjustment to your account
(and will be liable for any refund) to the extent any allowance, discount
or concession is made and the conditions therefor are not fulfilled. Each
price is always subject to confirmation, and will be based upon the net
asset value next determined after receipt of an order that is in good form.
If any Shares purchased are tendered for redemption or repurchased by the
Fund for any reason within seven business days after confirmation of the
purchase order for such Shares, you agree to promptly refund the full sales
load or other concession and you will forfeit the right to receive any
compensation allowable or payable to you on such Shares. We reserve the
right to waive sales charges. You represent to us that you are eligible to
receive any such sales charges and concessions paid to you under this
Section.
6. TRANSACTIONS IN FUND SHARES. With respect to all orders you place for the
purchase of Fund Shares, unless otherwise agreed, settlement shall be made
with the Company within three (3) business days after acceptance of the
order. If payment is not so received or made, the transaction may be
cancelled. In this event or in the event that you cancel the trade for any
reason, you agree to be responsible for any loss resulting to the Funds or
to us from your failure to make payments as aforesaid. You shall not be
entitled to any gains generated thereby. You also assume responsibility for
any loss to a Fund caused by any order placed by you on an "as-
of" basis subsequent to the trade date for the order, and will immediately
pay such loss to the Fund upon notification or demand. Such orders shall be
acceptable only as permitted by the Company and shall be subject to the
Company's policies pertaining thereto, which may include receipt of an
executed Letter of Indemnity in a form acceptable to the Fund and /or to us
prior to the Company's acceptance of any such order.
7. ACCURACY OF ORDERS; CUSTOMER SIGNATURES. You shall be responsible for the
accuracy, timeliness and completeness of any orders transmitted by you on
behalf of your customers by any means, including wire or telephone. In
addition, you agree to guarantee the signatures of your customers when such
guarantee is required by the Company and you agree to indemnify and hold
harmless all persons, including us and the Funds' transfer agent, from and
against any and all loss, cost, damage or expense suffered or incurred in
reliance upon such signature guarantee.
8. INDEMNIFICATION. You agree to indemnify us and hold us harmless from and
against any claims, liabilities, expenses (including reasonable attorneys
fees) and losses resulting from (i) any failure by you to comply with
Applicable Laws in connection with activities performed under this
agreement, or (ii) any unauthorized representation made by you concerning
an investment in Fund Shares. We agree to indemnify you and hold you
harmless from and against any claims, liabilities, expenses (including
reasonable attorneys fees) and losses resulting from (i) any failure by us
to comply with Applicable Laws in connection with our activities as
Distributor under this agreement, or (ii) any untrue statement of a
material fact set forth in a Fund's Prospectus or supplemental sales
material provided to you by us (and used by you on the terms and for the
period specified by us or stated in such material), or omission to state a
material fact required to be stated therein to make the statements therein
not misleading; provided, however, that the indemnification in this clause
(ii) shall be limited to indemnification actually received by us as
Distributor from the Funds, except to the extent that the relevant claims,
liabilities, expenses and losses result from our own failure to exercise
reasonable care in the preparation or review of the Prospectus or such
other materials.
9. MULTI-CLASS DISTRIBUTION ARRANGEMENTS. You understand and acknowledge that
the Funds may offer Shares in multiple classes, and you represent and
warrant that you have established compliance procedures designed to ensure
that your customers are made aware of the terms of each available class of
Fund Shares, to ensure that each customer is offered only Shares that are
suitable investments for him or her, to ensure that each customer is
availed of the opportunity to obtain sales charge break points as detailed
in the Prospectus, and to ensure proper supervision of your representatives
in recommending and offering the Shares of multiple classes to your
customers.
10. ANTI-MONEY LAUNDERING COMPLIANCE. Each party to this agreement acknowledges
that it is a financial institution subject to the USA Patriot Act of 2001
and the Bank Secrecy Act (collectively, the "AML Acts"), which require,
among other things, that financial institutions adopt compliance programs
to guard against money laundering. Each party represents and warrants that
it is in compliance and will continue to comply with the AML Acts and
applicable rules thereunder ("AML Laws"), including NASD/FINRA Conduct Rule
3011, in all relevant respects. The parties agree to cooperate with one
another to satisfy AML due diligence policies of the Company and
Distributor, which may include annual compliance certifications and
periodic due diligence reviews and/or other requests deemed necessary or
appropriate by us to ensure compliance with AML Laws.
11. PRIVACY. The parties agree that any Non-public Personal Information, as the
term is defined in Regulation S-P ("Reg S-P") of the Securities and
Exchange Commission, that may be disclosed hereunder is disclosed for the
specific purpose of permitting the other party to perform the
services set forth in this agreement. Each party agrees that, with respect
to such information, it will comply with Reg S-P and that it will not
disclose any Non-Public Personal Information received in connection with
this agreement to any other party, except to the extent required to carry
out the services set forth in this agreement or as otherwise permitted by
law.
12. DISTRIBUTION AND/OR SERVICE FEES. Subject to and in accordance with the
terms of each Prospectus and the Distribution Plan and/or Service Plan, if
any, adopted by resolution of the Board pursuant to Rule 12b-1 under the
Investment Company Act of 1940 (the "1940 Act"), we may pay financial
institutions with which we have entered into an agreement in substantially
the form annexed hereto as Appendix A or such other form as may be approved
from time to time by the Board (the "Fee Agreement") such fees as may be
determined in accordance with such Fee Agreement, for distribution,
shareholder or administrative services, as described therein.
13. ORDER PROCESSING. You represent that you have reviewed your policies and
procedures to ensure that they are adequate with respect to preventing
violations of law (including rule 22c-1 under the Investment Company Act of
1940, as amended) and prospectus requirements related to timely
order-taking and market timing activity, and you hereby provide the
confirmation set forth on Appendix B hereto. You represent that you will be
responsible for the collection and payment to the Company of any Redemption
Fees, based upon the terms outlined in the Company's prospectus.
14. AMENDMENTS. This agreement may be amended from time to time by the
following procedure. We will mail a copy of the amendment to you at your
address shown below. If you do not object to the amendment within fifteen
(15) days after its receipt, the amendment will become a part of this
agreement. Your objection must be in writing and be received by us within
such fifteen (15) days. All amendments shall be in writing and except as
provided above shall be executed by both parties.
15. TERMINATION. This agreement may be terminated by either party, without
penalty, upon ten days' prior written notice to the other party. Any
unfulfilled obligations hereunder, and all obligations of indemnification,
shall survive the termination of this agreement.
16. ASSIGNMENT. This agreement shall not be assigned, except to affiliates,
provided, however, that Selling Group Member may not assign this agreement
without our prior written consent. The compensation paid to Selling Group
Member pursuant to Section 12 of this agreement shall immediately terminate
upon any assignment of this agreement, until and unless a new agreement is
executed.
17. NOTICES. All notices and communications to us shall be sent to us at 000
Xxxxxx Xxxxxx, 00xx Xxxxx, Xxxxxx, Xxxxxxxxxxxxx 00000, Attn: Broker-Dealer
Compliance Department, or at such other address as we may designate in
writing. All notices and other communication to you shall be sent to you at
the address set forth below or at such other address as you may designate
in writing. All notices required or permitted to be given pursuant to this
agreement shall be given in writing and delivered by personal delivery, by
postage prepaid mail, or by facsimile or similar means of same-day
delivery, with a confirming copy by mail.
18. AUTHORIZATION. Each party represents to the other that all requisite
corporate proceedings have been undertaken to authorize it to enter into
and perform under this agreement as contemplated herein, and that the
individual that has signed this agreement below on its behalf is a duly
elected officer that has been empowered to act for and on behalf of such
party with respect to the execution of this agreement.
19. MISCELLANEOUS. This agreement supersedes any other agreement between the
parties with respect to the offer and sale of Fund Shares and other matters
covered herein. The invalidity or unenforceability of any term or provision
hereof shall not affect the validity or enforceability of any other term or
provision hereof. This agreement may be executed in any number of
counterparts, which together shall constitute one instrument. This
agreement shall be governed by and construed in accordance with the laws of
the Commonwealth of Massachusetts without regard to conflict of laws
principles, and shall bind and inure to the benefit of the parties hereto
and their respective successors and assigns.
* * * * * * * *
If the foregoing corresponds with your understanding of our agreement, please
sign this document and the accompanying copies thereof in the appropriate space
below and return the same to us, whereupon this agreement shall be binding upon
each of us.
FORESIDE DISTRIBUTION SERVICES, L.P.
(OR SUBSEQUENT AFFILIATED DISTRIBUTOR)
By:
---------------------------------
Insert Name:
------------------------
Title:
------------------------------
Date:
-------------------------------
Agreed to and accepted:
-------------------------------------
Selling Group Member
By:
---------------------------------
Insert Name:
------------------------
Title:
------------------------------
Date:
-------------------------------
Address of Selling Group Member:
-------------------------------------
-------------------------------------
APPENDIX A
GENDEX FUND
FORESIDE DISTRIBUTION SERVICES, L.P., DISTRIBUTOR
(or subsequent affiliated distributor)
SERVICE FEE AGREEMENT
Ladies and Gentlemen:
This Fee Agreement ("Agreement") confirms our understanding and agreement with
respect to Rule 12b-1 payments to be made to you in accordance with the Selling
Group Member Agreement between you and us (the "Selling Agreement"), which
entitles you to serve as a selected dealer of certain Funds for which we serve
as Distributor. Capitalized terms used but not defined herein shall have the
respective meanings set forth in the Selling Group Member Agreement.
1. From time to time during the term of this Agreement, we may make payments to
you pursuant to one or more distribution and service plans (the "Plans") adopted
by certain of the Funds pursuant to Rule 12b-1 of the 1940 Act. You agree to
furnish sales and marketing services and/or shareholder services to your
customers who invest in and own Fund Shares, including, but not limited to,
answering routine inquiries regarding the Funds, processing shareholder
transactions, and providing any other shareholder services not otherwise
provided by a Fund's transfer agent. With respect to such payments to you, we
shall have only the obligation to make payments to you after, for as long as,
and to the extent that, we receive from the Fund an amount equivalent to the
amount payable to you. The Fund or us, as Distributor, each reserves the right,
without prior notice, to suspend or eliminate the payment of such Rule 12b-1
Plan payments or other dealer compensation by amendment, sticker or supplement
to the then-current Prospectus of the Fund.
2. Any such fee payments shall reflect up to the maximum amounts as described in
a Fund's Prospectus. Payments will be based on the dollar amount of Fund Shares
which are owned by those customers of yours whose records, as maintained by the
Funds or the transfer agent, designate your firm as the customer's dealer of
record. . No such fee payments will be payable to you with respect to shares
purchased by or through you and redeemed by the Funds within seven business days
after the date of confirmation of such purchase. You represent that you are
eligible to receive any such payments made to you under the Plans.
3. You agree that all activities conducted under this Agreement will be
conducted in accordance with the Plans, as well as all applicable state and
federal laws, including the Investment Company Act of 1940, the Securities
Exchange Act of 1934, the Securities Act of 1933 and any applicable rules of the
NASD/FINRA.
4. Upon request, on a quarterly basis, you shall furnish us with a written
report describing the amounts payable to you pursuant to this Agreement and the
purpose for which such amounts were expended. We shall provide quarterly reports
to the Funds' Board of amounts expended pursuant to the Plans and the purposes
for which such expenditures were made. You shall furnish us with such other
information as shall reasonably be requested by us in connection with our
reports to the Board with respect to the fees paid to you pursuant to this
Agreement.
5. This Agreement shall continue in effect until terminated in the manner
prescribed below or as provided in the Plans or in Rule 12b-1. This Agreement
may be terminated, with respect to one or more Funds, without penalty, by either
of us, upon ten days' prior written notice to the other party. In addition, this
Agreement will be terminated with respect to any Fund upon a termination of the
relevant Plan or the Selling Group Member Agreement, if a Fund closes to new
investments, or if our Distribution Agreement with the Funds terminates.
6. This Agreement may be amended by us from time to time by the following
procedure. We will mail a copy of the amendment to you at your address shown
below or as registered from time to time with the NASD. If you do not object to
the amendment within fifteen (15) days after its receipt, the amendment will
become a part of this Agreement. Your objection must be in writing and be
received by us within such fifteen days.
7. This Agreement shall become effective as of the date when it is executed and
dated by us below. This Agreement and all the rights and obligations of the
parties hereunder shall be governed by and construed under the laws of the
Commonwealth of Massachusetts, without regard to conflict of laws principles. .
8. All notices and other communications shall be given as provided in the
Selling Group Member Agreement.
If the foregoing is acceptable to you, please sign this Agreement in the space
provided below and return the same to us.
FORESIDE DISTRIBUTION SERVICES, L.P.
(or subsequent affiliated Agreed to and Accepted:
distributor) Name and Address of
Selling Group Member:
By:
--------------------------------- ----------------------------------------
Insert Name:
------------------------ ----------------------------------------
Title:
------------------------------ ----------------------------------------
Date:
-------------------------------
By:
------------------------------------
Insert Name:
---------------------------
Title:
---------------------------------
Date:
----------------------------------
APPENDIX B
TO: FORESIDE DISTRIBUTION SERVICES, L.P.
(OR SUBSEQUENT AFFILIATED DISTRIBUTOR)
AS DISTRIBUTOR OF GENDEX FUND
CONFIRMATION
As a member of the selling group for the Shares of the above-referenced Funds,
and pursuant to the terms of our Selling Agreement, we hereby certify to you
that we will at all times comply with (i) the provisions of our Selling
Agreement related to compliance with all applicable rules and regulations; and
(ii) the terms of each registration statement and prospectus for the Funds.
We have performed a review of our internal controls and procedures to ensure
that such controls and procedures are adequate to (i) prevent the submission of
any order received after the deadline for submission of orders in each day that
are eligible for pricing at that day's net asset value per share ("NAV"); and
(ii) prevent the purchase of Fund Shares by an individual or entity whose stated
objectives are not consistent with the stated policies of a Fund in protecting
the best interests of longer-term investors, particularly where such
customer-investor may be seeking market timing or arbitrage opportunities
through such purchase.
