EXHIBIT (h)(2)
FREEDOM INVESTORS CORP.
000 XXXX XXXXXXXXX XXXXXX
XXXXXXXX, XXXXXXXXX 00000-0000
000-000-0000
SELECTED DEALERS AGREEMENT
Freedom Investors Corp. ("Freedom") as the Distributor of the shares of
each series (each "Portfolio") of Frontier Funds, Inc. (the "Fund"), understands
that you are a member in good standing of the National Association of Securities
Dealers, Inc. (your signature below shall constitute a representation of such
membership in good standing) and, on the basis of such understanding, invites
you to become a Selected Dealer to distribute any or all shares of each
Portfolio of the Fund in those states in which you and the shares are currently
qualified for sale, on the following terms:
1. You and ourselves agree to abide by the Rules of Fair Practice of the
National Association of Securities Dealers, Inc. ("NASD") and all other federal
and state rules and regulations that are now or may become applicable to
transactions hereunder. Your expulsion or suspension from the NASD will
automatically terminate this Agreement without notice. Either of us may
terminate this Agreement at any time upon notice to the other.
2. Orders for shares received from you and accepted by us will be at the
public offering price applicable to each order, as established by the then
effective prospectus of the Fund and Portfolio. The procedure relating to the
handling of orders shall be subject to instructions which we will forward from
time to time to all Selected Dealers. All orders are subject to acceptance by us
at 000 Xxxx Xxxxxxxxx Xxxxxx, Xxxxxxxx, Xxxxxxxxx 00000-0000, and we reserve the
right in our sole discretion to reject any order. we also reserve the right to
establish minimum orders for individual purchasers as well as for Selected
Dealers.
3. Selected Dealers will be allowed the concessions from the public
offering price as set forth in the then current prospectus of the Fund and
Portfolio, or as may be determined by Freedom. The sales charge and dealer
concession may be changed at our discretion and we will advise you of any such
change.
4. You agree that your transactions in shares of the Fund will be limited
to the purchase of shares from us for resale to your customers at the public
offering price then in effect or for your bona fide investment and to
repurchases which are made in accordance with the procedures set forth in the
then current prospectus of the Fund and Portfolio or in instructions which we
forward to the Selected Dealers.
5. Except for sales pursuant to plans established by the Fund with an agent
bank and providing for the periodic investment of new monies, orders will not be
accepted for less than the number of shares or dollar amount set forth in the
then current prospectus of the Fund and Portfolio.
6. You agree that you will not withhold placing customers' orders so as to
profit yourself as a result of such withholding.
7. You agree to sell shares only to your customers at the applicable public
offering price or to the Fund or us as Distributor for the Fund at net asset
value, in each case determined as set forth in the then current prospectus of
the Fund and Portfolio.
8. Settlement shall be made within five business days after our acceptance
of the order. If payment is not so received or made, we reserve the right
forthwith to cancel the sale, or, at our option, to sell the shares at the then
prevailing net asset value in which latter case you agree to be responsible for
any loss resulting to any Portfolio of the Fund or to us from your failure to
make payments as aforesaid,, including loss of profit suffered by us and/or the
Fund.
9. If shares sold to you under the terms of this Agreement are redeemed by
the Fund or repurchased for the account of the Fund or are tendered to the Fund
for redemption or repurchase within seven business days after the date of our
confirmation to you of your original purchase order therefor, you agree to pay
forthwith to us the full amount of the concession allowed to you on the original
sale and we agree to pay such amount to the Fund when received by us. We also
agree to pay to the Fund the amount of our share of the sales charge on the
original sale of such shares.
10. If any shares are repurchased from you by the Fund, or by us for the
account of the Fund, such shares shall be tendered in good order within ten
business days. If shares are not tendered within such time period, the right is
reserved to cancel, at any subsequent time, the repurchase order, or, at our
option, to reacquire such number of shares at the net asset value next computed,
in which latter case you will agree to be responsible for any loss resulting
from your failure to deliver such shares.
11. All sales will be subject to receipt of shares by us from the Fund. We
reserve the right in our discretion without notice to you to suspend sales or
withdraw any offering of shares entirely or to change the offering prices as
provided in the Fund's prospectus or, upon notice, to amend or cancel this
Agreement, which shall be construed in accordance with the laws of the State of
Wisconsin. You agree that any order to purchase shares of any Portfolio of the
Fund placed by you after notice of any such amendment has been sent to you shall
constitute your agreement to any such amendment.
12. No person is authorized to make any representation concerning the Fund
or the shares of any Portfolio except those contained in the Fund's effective
prospectus and any such information as may be officially designated as
information supplemental to the prospectus. In purchasing shares from you shall
rely solely on the representations contained in the effective prospectus and
supplemental information above mentioned.
13. We will supply to Selected Dealers additional copies of the then
effective prospectus in reasonable quantities upon request. All expenses
incurred in connection with your activities under this Agreement shall be borne
by you.
14. In no transaction shall you have any authority whatever to act as agent
of the Fund or of us or of any other Selected Dealer, and nothing in this
Agreement shall constitute either of us the agent of the other or shall
constitute you or the Fund the agent of the other. Except as otherwise indicated
herein, all transactions in these shares between you and us are as principal,
each for his own account. This Agreement shall not be assignable by you.
15. Any notice to you shall be duly given if mailed or telegraphed to you
at your address as registered from time to time with the NASD. Any notice to
Freedom shall be sent to 000 Xxxx Xxxxxxxxx Xxxxxx, Xxxxxxxx, Xxxxxxxxx 00000.
16. This Agreement constitutes the entire agreement between Freedom and the
undersigned Selected Dealer and supersedes all prior oral or written agreements
between the parties hereto. This Agreement may be amended by addendum thereto
which need not be executed by the Selected Dealer.
Such addendum may be used, for example, to add additional Portfolios to the
Fund, and shall be effective as to each Selected Dealer upon making a trade in
the shares of any Portfolio of the Fund.
Sincerely,
FREEDOM INVESTORS CORP.
BY------------------------------
The undersigned accepts your invitation to become a Selected Dealer and agrees
to abide by the foregoing terms and conditions.
Signed --------------, 19---
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(Selected Dealer)
BY--------------------------------
(Authorized Signature)
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(Print Name and Title)
PLEASE PRINT OR TYPE:
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Selected Dealer
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