DISTRIBUTION AGREEMENT
THIS AGREEMENT is made and entered into as of this 22nd day of November,
2002, by and among Matrix Advisors Value Fund, Inc., a Maryland corporation (the
"Fund"), Matrix Asset Advisors, Inc, a New York corporation (the "Adviser") and
Quasar Distributors, LLC, a Delaware limited liability company (the
"Distributor").
WHEREAS, the Fund is registered under the Investment Company Act of 1940,
as amended (the "1940 Act"), as an open-end management investment company, and
is authorized to issue shares of common stock ("Shares") in separate series,
with each such series representing interests in a separate portfolio of
securities and other assets;
WHEREAS, the Adviser serves as the investment adviser for the Fund and is
duly registered under the Investment Advisers Act of 1940, as amended, and any
applicable state securities laws, as an investment adviser;
WHEREAS, the Fund desires to retain the Distributor as principal
underwriter in connection with the offering and sale of the Shares of each
series listed on Exhibit A hereto (as amended from time to time) (each a
"Fund");
WHEREAS, the Distributor is registered as a broker-dealer under the
Securities Exchange Act of 1934, as amended (the "1934 Act"), and is a member of
the National Association of Securities Dealers, Inc. (the "NASD");
WHEREAS, this Agreement has been approved by a vote of the Fund's board
of directors ("Board") and its disinterested directors in conformity with
Section 15(c) of the 1940 Act; and
WHEREAS, the Distributor is willing to act as principal underwriter for
the Fund on the terms and conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the promises and mutual covenants
herein contained, and other good and valuable consideration, the receipt of
which is hereby acknowledged, the parties hereto, intending to be legally bound,
do hereby agree as follows:
1. Appointment of Quasar as the Distributor
The Fund hereby appoints the Distributor as its agent for the sale and
distribution of Shares of the Fund, on the terms and conditions set forth in
this Agreement, and the Distributor hereby accepts such appointment and agrees
to perform the services and duties set forth in this Agreement.
2. Services and Duties of the Distributor
A. The Distributor agrees to sell Shares of the Fund on a best efforts
basis as agent for the Fund during the term of this Agreement, upon the terms
and at the current offering price (plus sales charge, if any) described in the
Prospectus. As used in this Agreement, the term "Prospectus" shall mean the
current prospectus, including the statement of additional information, as
amended or supplemented, relating to the Fund and included in the currently
effective registration statement or post-effective amendment thereto (the
"Registration Statement") of the Fund under the Securities Act of 1933 (the
"1933 Act") and the 0000 Xxx.
B. During the continuous public offering of Shares of the Fund, the
Distributor will hold itself available to receive orders, satisfactory to the
Distributor, for the purchase of Shares of the Fund and will accept such orders
on behalf of the Fund. Such purchase orders shall be deemed effective at the
time and in the manner set forth in the Prospectus.
C. The Distributor, with the operational assistance of the Fund's transfer
agent, shall make Shares available for sale and redemption through the National
Securities Clearing Corporation's Fund/SERV System.
D. In connection with all matters relating to this Agreement, the
Distributor agrees to comply with the requirements of the 1933 Act, the 1934
Act, the 1940 Act, the regulations of the NASD and all other applicable federal
or state laws and regulations. The Distributor acknowledges and agrees that it
is not authorized to provide any information or make any representations other
than as contained in the Prospectus and any sales literature specifically
approved by the Fund and the Distributor.
E. The Distributor agrees to cooperate with the Fund in the development of
all proposed advertisements and sales literature relating to the Fund. The
Distributor agrees to review all proposed advertisements and sales literature
for compliance with applicable laws and regulations, and shall file with
appropriate regulators those advertisements and sales literature it believes are
in compliance with such laws and regulations. The Distributor agrees to furnish
to the Fund any comments provided by regulators with respect to such materials
and to use its best efforts to obtain the approval of the regulators to such
materials.
F. The Distributor at its sole discretion may repurchase Shares offered for
sale by shareholders of the Fund. Repurchase of Shares by the Distributor shall
be at the price determined in accordance with, and in the manner set forth in,
the current Prospectus. At the end of each business day, the Distributor shall
notify, by any appropriate means, the Fund and its transfer agent of the orders
for repurchase of Shares received by the Distributor since the last report, the
amount to be paid for such Shares, and the identity of the shareholders offering
Shares for repurchase. The Fund reserves the right to suspend such repurchase
right upon written notice to the Distributor. The Distributor further agrees to
act as agent for the Fund to receive and transmit promptly to the Fund's
transfer agent shareholder requests for redemption of Shares.
G. The Distributor may, in its discretion, enter into agreements with such
qualified broker-dealers as it may select, in order that such broker-dealers
also may sell Shares of the Fund. The form of any dealer agreement shall be
mutually agreed upon and approved by the Fund and the Distributor. The
Distributor may pay a portion of any applicable sales charge, or allow a
discount, to a selling broker-dealer, as described in the Prospectus or, if not
described, as agreed upon with the broker-dealer. The Distributor shall include
in the forms of agreement with selling broker-dealers a provision for the
forfeiture by them of their sales charge or discount with respect to Shares sold
by them and redeemed, repurchased or tendered for redemption within seven
business days after the date of confirmation of such purchases.
H. The Distributor shall devote its best efforts to effect sales of Shares
of the Fund but shall not be obligated to sell any certain number of Shares.
I. The Distributor shall prepare reports for the Board regarding its
activities under this Agreement as from time to time shall be reasonably
requested by the Board, including reports regarding the use of 12b-1 payments
received by the Distributor, if any.
J. The services furnished by the Distributor hereunder are not to be deemed
exclusive and the Distributor shall be free to furnish similar services to
others so long as its services under this Agreement are not impaired thereby.
The Fund recognizes that from time to time officers and employees of the
Distributor may serve as directors, directors, officers and employees of other
entities (including investment companies), that such other entities may include
the name of the Distributor as part of their name and that the Distributor or
its affiliates may enter into distribution, administration, fund accounting,
transfer agent or other agreements with such other entities.
3. Duties and Representations of the Fund
A. The Fund represents that it is duly organized and in good standing under
the law of its jurisdiction of organization and registered as an open-end
management investment company under the 1940 Act. The Fund agrees that it will
act in material conformity with its Articles of Incorporation, By-Laws, its
Registration Statement as may be amended from time to time and resolutions and
other instructions of its Board. The Fund agrees to comply in all material
respects with the 1933 Act, the 1940 Act, and all other applicable federal and
state laws and regulations. The Fund represents and warrants that this Agreement
has been duly authorized by all necessary action by the Fund under the 1940 Act,
state law and the Fund's Articles of Incorporation and By-Laws.
B. The Fund, or its agent, shall take or cause to be taken all necessary
action to register Shares of the Fund under the 1933 Act and to maintain an
effective Registration Statement for such Shares in order to permit the sale of
Shares as herein contemplated. The Fund authorizes the Distributor to use the
Prospectus, in the form furnished to the Distributor from time to time, in
connection with the sale of Shares.
C. The Fund represents and agrees that all Shares to be sold by it,
including those offered under this Agreement, are validly authorized and, when
issued in accordance with the description in the Prospectus, will be fully paid
and nonassessable. The Fund further agrees that it shall have the right to
suspend the sale of Shares of any Fund at any time in response to conditions in
the securities markets or otherwise, and to suspend the redemption of Shares of
any Fund at any time permitted by the 1940 Act or the rules of the Securities
and Exchange Commission ("SEC"). The Fund shall advise the Distributor promptly
of any such determination.
D. The Fund agrees to advise the Distributor promptly in writing:
(i) of any material correspondence or other communication by the SEC
or its staff relating to the Fund, including requests by the SEC for
amendments to the Registration Statement or Prospectus;
(ii) in the event of the issuance by the SEC of any stop-order
suspending the effectiveness of the Registration Statement then in effect
or the initiation of any proceeding for that purpose;
(iii) of the happening of any event which makes untrue any statement
of a material fact made in the Prospectus or which requires the making of a
change in such Prospectus in order to make the statements therein not
misleading; and
(iv) of all actions taken by the SEC with respect to any amendments to
any Registration Statement or Prospectus which may from time to time be
filed with the SEC.
E. The Fund shall file such reports and other documents as may be required
under applicable federal and state laws and regulations. The Fund shall notify
the Distributor in writing of the states in which the Shares may be sold and
shall notify the Distributor in writing of any changes to such information.
F. The Fund agrees to file from time to time such amendments to its
Registration Statement and Prospectus as may be necessary in order that its
Registration Statement and Prospectus will not contain any untrue statement of
material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading.
G. The Fund shall fully cooperate in the efforts of the Distributor to sell
and arrange for the sale of Shares and shall make available to the Distributor a
statement of each computation of net asset value. In addition, the Fund shall
keep the Distributor fully informed of its affairs and shall provide to the
Distributor from time to time copies of all information, financial statements,
and other papers that the Distributor may reasonably request for use in
connection with the distribution of Shares, including, without limitation,
certified copies of any financial statements prepared for the Fund by its
independent public accountants and such reasonable number of copies of the most
current Prospectus, statement of additional information and annual and interim
reports to shareholders as the Distributor may request. The Fund shall forward a
copy of any SEC filings, including the Registration Statement, to the
Distributor within one business day of any such filings. The Fund represents
that it will not use or authorize the use of any advertising or sales material
unless and until such materials have been approved and authorized for use by the
Distributor.
H. The Fund represents and warrants that its Registration Statement and any
advertisements and sales literature of the Fund (excluding statements relating
to the Distributor and the services it provides that are based upon written
information furnished by the Distributor expressly for inclusion therein) shall
not contain any untrue statement of material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein
not misleading, and that all statements or information furnished to the
Distributor pursuant to this Agreement shall be true and correct in all material
respects.
4. Compensation
As compensation for the services performed and the expenses assumed by
Distributor under this Agreement including, but not limited to, any commissions
paid for sales of Shares, Distributor shall be entitled to the fees and expenses
set forth in Exhibit B hereto (as amended from time to time), which are payable
promptly after the last day of each month. Such fees and expenses shall be paid
to Distributor by the Fund from Rule 12b-1 fees payable by the appropriate Fund
or, if Rule 12b-1 fees are not sufficient to pay such fees and expenses, or if
the Rule 12b-1 plan is discontinued, or if the Adviser otherwise determines that
Rule 12b-1 fees shall not, in whole or in part, be used to pay Distributor, the
Adviser shall be responsible for the payment of the amount of such fees and
expenses not covered by Rule 12b-1 payments.
5. Expenses
A. The Fund shall bear all costs and expenses in connection with
registration of the Shares with the SEC and related compliance with state
securities laws, as well as all costs and expenses in connection with the
offering of the Shares and communications with shareholders, including but not
limited to (i) fees and disbursements of its counsel and independent public
accountants; (ii) costs and expenses of the preparation, filing, printing and
mailing of Registration Statements and Prospectuses and amendments thereto, as
well as related advertising and sales literature, (iii) costs and expenses of
the preparation, printing and mailing of annual and interim reports, proxy
materials and other communications to shareholders of the Fund; and (iv) fees
required in connection with the offer and sale of Shares in such jurisdictions
as shall be selected by the Fund pursuant to Section 3(E) hereof.
B. The Distributor shall bear the expenses of registration or qualification
of the Distributor as a dealer or broker under federal or state laws and the
expenses of continuing such registration or qualification. The Distributor does
not assume responsibility for any expenses not expressly assumed hereunder.
6. Indemnification
A. The Fund shall indemnify, defend and hold the Distributor, and each of
its present or former members, officers, employees, representatives and any
person who controls or previously controlled the Distributor within the meaning
of Section 15 of the 1933 Act, free and harmless from and against any and all
losses, claims, demands, liabilities, damages and expenses (including the costs
of investigating or defending any alleged losses, claims, demands, liabilities,
damages or expenses and any reasonable counsel fees incurred in connection
therewith) (collectively, "Losses") that the Distributor, each of its present
and former members, officers, employees or representatives or any such
controlling person, may incur under the 1933 Act, the 1934 Act, any other
statute (including Blue Sky laws) or any rule or regulation thereunder, or under
common law or otherwise, arising out of or based upon any untrue statement, or
alleged untrue statement of a material fact contained in the Registration
Statement or any Prospectus, as from time to time amended or supplemented, or in
any annual or interim report to shareholders, or in any advertisement or sales
literature, or arising out of or based upon any omission, or alleged omission,
to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, or based upon the Fund's failure to
comply with the terms of this Agreement or applicable law; provided, however,
that the Fund's obligation to indemnify the Distributor and any of the foregoing
indemnitees shall not be deemed to cover any Losses arising out of any untrue
statement or alleged untrue statement or omission or alleged omission made in
the Registration Statement, Prospectus, annual or interim report, or any such
advertisement or sales literature in reliance upon and in conformity with
information relating to the Distributor and furnished to the Fund or its counsel
by the Distributor in writing and acknowledging the purpose of its use for the
purpose of, and used in, the preparation thereof. The Fund's agreement to
indemnify the Distributor, and any of the foregoing indemnitees, as the case may
be, with respect to any action, is expressly conditioned upon the Fund being
notified of such action or claim of loss brought against the Distributor, or any
of the foregoing indemnitees, within a reasonable time after the summons or
other first legal process giving information of the nature of the claim shall
have been served upon the Distributor, or such person, unless the failure to
give notice does not prejudice the Fund. Such notification shall be given by
letter or by telegram addressed to the Fund's President, but the failure so to
notify the Fund of any such action shall not relieve the Fund from any liability
which the Fund may have to the person against whom such action is brought by
reason of any such untrue, or alleged untrue, statement or omission, or alleged
omission, otherwise than on account of the Fund's indemnity agreement contained
in this Section 6(A).
B. The Fund shall be entitled to participate at its own expense in the
defense or, if it so elects, to assume the defense of any suit brought to
enforce any such Losses, but if the Fund elects to assume the defense, such
defense shall be conducted by counsel chosen by the Fund and approved by the
Distributor, which approval shall not be unreasonably withheld. In the event the
Fund elects to assume the defense of any such suit and retain such counsel, the
indemnified defendant or defendants in such suit shall bear the reasonable fees
and expenses of any additional counsel retained by them. If the Fund does not
elect to assume the defense of any such suit, or in case the Distributor does
not, in the exercise of reasonable judgment, approve of counsel chosen by the
Fund or, if under prevailing law or legal codes of ethics, the same counsel
cannot effectively represent the interests of both the Fund and the Distributor,
and each of its present or former members, officers, employees, representatives
or any controlling person, the Fund will reimburse the indemnified person or
persons named as defendant or defendants in such suit, for the fees and expenses
of any counsel retained by Distributor and them. The Fund's indemnification
agreement contained in Sections 6(A) and 6(B) shall remain operative and in full
force and effect regardless of any investigation made by or on behalf of the
Distributor, and each of its present or former members, officers, employees,
representatives or any controlling person, and shall survive the delivery of any
Shares and the termination of this Agreement. This agreement of indemnity will
inure exclusively to the Distributor's benefit, to the benefit of each of its
present or former members, officers, employees or representatives or to the
benefit of any controlling persons and their successors. The Fund agrees
promptly to notify the Distributor of the commencement of any litigation or
proceedings against the Fund or any of its officers or directors in connection
with the issue and sale of any of the Shares.
C. The Fund shall advance attorney's fees and other expenses incurred by
any person in defending any claim, demand, action or suit which is the subject
of a claim for indemnification pursuant to this Section 6 to the maximum extent
permissible under applicable law.
D. The Distributor shall indemnify, defend and hold the Fund, and each of
its present or former Directors, officers, employees, representatives, and any
person who controls or previously controlled the Fund within the meaning of
Section 15 of the 1933 Act, free and harmless from and against any and all
Losses that the Fund, and each of its present or former directors, officers,
employees, representatives, or any such controlling person, may incur under the
1933 Act, the 1934 Act, any other statute (including Blue Sky laws) or any rule
or regulation thereunder, or under common law or otherwise, arising out of or
based upon any untrue, or alleged untrue, statement of a material fact contained
in the Fund's Registration Statement or any Prospectus, as from time to time
amended or supplemented, or arising out of or based upon Distributor's failure
to comply with the terms of this Agreement or applicable law, or the omission,
or alleged omission, to state therein a material fact required to be stated
therein or necessary to make the statement not misleading, but only if such
statement or omission was made in reliance upon, and in conformity with, written
information relating to the Distributor and furnished to the Fund or its counsel
by the Distributor for the purpose of, and used in, the preparation thereof. The
Distributor's agreement to indemnify the Fund, and any of the foregoing
indemnitees, is expressly conditioned upon the Distributor's being notified of
any action or claim of loss brought against the Fund, and any of the foregoing
indemnitees, such notification to be given by letter or telegram addressed to
the Distributor's President, within a reasonable time after the summons or other
first legal process giving information of the nature of the claim shall have
been served upon the Fund or such person unless the failure to give notice does
not prejudice the Distributor, but the failure so to notify the Distributor of
any such action shall not relieve the Distributor from any liability which the
Distributor may have to the person against whom such action is brought by reason
of any such untrue, or alleged untrue, statement or omission, otherwise than on
account of the Distributor's indemnity agreement contained in this Section 6(D).
E. The Distributor shall be entitled to participate at its own expense in
the defense or, if it so elects, to assume the defense of any suit brought to
enforce any such loss, claim, demand, liability, damage or expense, but if the
Distributor elects to assume the defense, such defense shall be conducted by
counsel chosen by the Distributor and approved by the Fund, which approval shall
not be unreasonably withheld. In the event the Distributor elects to assume the
defense of any such suit and retain such counsel, the indemnified defendant or
defendants in such suit shall bear the fees and expenses of any additional
counsel retained by them. If the Distributor does not elect to assume the
defense of any such suit, or in case the Fund does not, in the exercise of
reasonable judgment, approve of counsel chosen by the Distributor or, if under
prevailing law or legal codes of ethics, the same counsel cannot effectively
represent the interests of both the Fund and the Distributor, and each of its
present or former members, officers, employees, representatives or any
controlling person, the Distributor will reimburse the indemnified person or
persons named as defendant or defendants in such suit, for the reasonable fees
and expenses of any counsel retained by the Fund and them. The Distributor's
indemnification agreement contained in Sections 6(D) and (E) shall remain
operative and in full force and effect regardless of any investigation made by
or on behalf of the Fund, and each of its present or former directors, officers,
employees, representatives or any controlling person, and shall survive the
delivery of any Shares and the termination of this Agreement. This Agreement of
indemnity will inure exclusively to the Fund's benefit, to the benefit of each
of its present or former directors, officers, employees or representatives or to
the benefit of any controlling persons and their successors. The Distributor
agrees promptly to notify the Fund of the commencement of any litigation or
proceedings against the Distributor or any of its officers or directors in
connection with the issue and sale of any of the Shares.
F. No person shall be obligated to provide indemnification under this
Section 6 if such indemnification would be impermissible under the 1940 Act, the
1933 Act, the 1934 Act or the rules of the NASD; provided, however, in such
event indemnification shall be provided under this Section 6 to the maximum
extent so permissible. The provisions of this Section 6 shall survive
termination of this Agreement.
7. Obligations of the Fund
This Agreement is executed by and on behalf of the Fund and the obligations
of the Fund hereunder are not binding upon any of the directors, officers or
shareholders of the Fund individually but are binding only upon the Fund.
8. Governing Law
This Agreement shall be construed in accordance with the laws of the State
of Wisconsin, without regard to conflicts of law principles. To the extent that
the applicable laws of the State of Wisconsin, or any of the provisions herein,
conflict with the applicable provisions of the 1940 Act, the latter shall
control, and nothing herein shall be construed in a manner inconsistent with the
1940 Act or any rule or order of the SEC thereunder.
9. Duration and Termination
A. This Agreement shall become effective with respect to each Fund listed
on Exhibit A hereof as of the date hereof and, with respect to each Fund not in
existence on that date, on the date an amendment to Exhibit A to this Agreement
relating to that Fund is executed. Unless sooner terminated as provided herein,
this Agreement shall continue in effect for two years from the date hereof.
Thereafter, if not terminated, this Agreement shall continue automatically in
effect as to each Fund for successive one-year periods, provided such
continuance is specifically approved at least annually by (i) the Fund's Board
or (ii) the vote of a "majority of the outstanding voting securities" of a Fund,
and provided that in either event the continuance is also approved by a majority
of the Fund's Board who are not "interested persons" of any party to this
Agreement, by vote cast in person at a meeting called for the purpose of voting
on such approval.
B. Notwithstanding the foregoing, this Agreement may be terminated, without
the payment of any penalty, with respect to a particular Fund (i) through a
failure to renew this Agreement at the end of a term, (ii) upon mutual consent
of the parties, or (iii) upon no less than 60 days' written notice, by either
the Fund through a vote of a majority of the members of the Board who are not
"interested persons" of the Fund and have no direct or indirect financial
interest in the operation of this Agreement or by vote of a "majority of the
outstanding voting securities" of a Fund, or by the Distributor. The terms of
this Agreement shall not be waived, altered, modified, amended or supplemented
in any manner whatsoever except by a written instrument signed by the
Distributor and the Fund. If required under the 1940 Act, any such amendment
must be approved by the Fund's Board, including a majority of the Fund's Board
who are not "interested persons" of any party to this Agreement, by vote cast in
person at a meeting for the purpose of voting on such amendment. In the event
that such amendment affects the Adviser, the written instrument shall also be
signed by the Adviser. This Agreement will automatically terminate in the event
of its assignment.
C. Sections 6, 8, 10 and 11 shall survive termination of this Agreement.
10. Confidentiality
The Distributor agrees on behalf of its employees to treat all records
relative to the Fund and prior, present or potential shareholders of the Fund as
confidential, and not to use such records for any purpose other than performance
of the Distributor's responsibilities and duties under this Agreement, except
after notification and prior approval by the Fund, which approval shall not be
unreasonably withheld, and may not be withheld where the Distributor may be
exposed to civil or criminal proceedings for failure to comply, when requested
to divulge such information by duly constituted authorities, when subject to
governmental or regulatory audit or investigation, or when so requested by the
Fund. Records and information that have become known to the public through no
wrongful act of the Distributor or any of its employees, agents or
representatives shall not be subject to this paragraph.
In accordance with Regulation S-P, the Distributor will not disclose any
non-public personal information, as defined in Regulation S-P, received from the
Fund or any Fund regarding any Fund shareholder; provided, however, that the
Distributor may disclose such information to any party as necessary in the
ordinary course of business to carry out the purposes for which such information
was disclosed to the Distributor, or as may be required by law. The Distributor
agrees to use reasonable precautions to protect and prevent the unintentional
disclosure of such non-public personal information.
11. Anti-Money Laundering Program
The Distributor represents and warrants that it (a) has adopted an
anti-money laundering compliance program ("AML Program") that satisfies the
requirements of all applicable laws and regulations; (b) undertakes to carry out
its AML Program to the best of its ability; and (c) will notify the Fund and the
Adviser promptly if an inspection by the appropriate regulatory authorities of
its AML Program identifies any material deficiency, and will promptly remedy any
material deficiency of which it learns.
12. Miscellaneous
The captions in this Agreement are included for convenience of reference
only and in no way define or delimit any of the provisions hereof or otherwise
affect their construction or effect. Any provision of this Agreement which may
be determined by competent authority to be prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors. As used in this
Agreement, the terms "majority of the outstanding voting securities,"
"interested person," and "assignment" shall have the same meaning as such terms
have in the 1940 Act.
12. Notices
Any notice required or permitted to be given by any party to the others
shall be in writing and shall be deemed to have been given on the date delivered
personally or by courier service or 3 days after sent by registered or certified
mail, postage prepaid, return receipt requested or on the date sent and
confirmed received by facsimile transmission to the other parties' respective
addresses set forth below:
Notice to the Distributor shall be sent to:
Quasar Distributors, LLC
Attn: President
000 Xxxx Xxxxxxxx Xxxxxx
Xxxxxxxxx, XX 00000
notice to the Fund shall be sent to:
Matrix Advisors Value Fund, Inc.
c/o Matrix Asset Advisors, Inc.
000 Xxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
and notice to the Adviser shall be sent to:
Matrix Asset Advisors, Inc.
000 Xxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by a duly authorized officer on one or more counterparts as of the date
first above written.
MATRIX ADVISORS VALUE FUND, INC. QUASAR DISTRIBUTORS, LLC
By: __________________________ By: ______________________________
Xxxxx X. Xxxx Xxxxx Xxxxxxxxx
Title: President Title: President
MATRIX ASSET ADVISORS, INC.
By: ________________________
Xxxxx X. Xxxx
Title: President
Exhibit A
to the
Distribution Agreement
Matrix Advisors Value Fund, Inc.
Name of Series Date
-------------- -----
Added
-----
Matrix Advisors Value Fund, Inc. 11/22/02
Exhibit B
to the
Distribution Agreement
Fee Schedule
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QUASAR DISTRIBUTORS, LLC
REGULATORY DISTRIBUTION SERVICES
ANNUAL FEE SCHEDULE
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Basic Distribution Services*
o 1 basis point of the Fund's average daily net assets, payable monthly in
arrears
o Minimum annual fee: first class or series -- $5,000; each additional series
-- $1,000
Advertising Compliance Review/NASD Filings
o $150 per job for the first 10 pages (minutes if tape or video); $20 per
page (minute if tape or video) thereafter
o Non-NASD filed materials, e.g. Internal Use Only Materials
$100 per job for the first 10 pages (minutes if tape or video); $20 per
page (minutes if tape or video) thereafter.
o NASD Expedited Service for 3 Day Turnaround
$1,000 for the first 10 pages (minutes if audio or video); $25 per page
(minute if audio or video) thereafter. (Comments are faxed. NASD may not
accept expedited request.)
Licensing of Investment Advisor's Staff (if desired)
o $900 per year per registered representative ("RR"), for 3 individuals or
less.
o $2,000 per year per registered representative beyond the first 3
individuals.
o Quasar is limited to these licenses for sponsorship: Series, 6, 7, 24, 26,
27, 63, 66, 63/65
o Plus all associated NASD and State fees for Registered Representatives,
including license and renewal fees.
Out-of-Pocket Expenses
Reasonable out-of-pocket expenses incurred by the Distributor in connection with
activities primarily intended to result in the sale of Shares, including,
without limitation: o typesetting, printing and distribution of Prospectuses and
shareholder reports o production, printing, distribution and placement of
advertising and sales literature and materials o engagement of designers,
free-xxxxx writers and public relations firms o long-distance telephone lines,
services and charges o postage o overnight delivery charges o NASD registration
fees (NASD advertising filing fees are included in Advertising Compliance Review
section above) o record retention o travel, lodging and meals
Fees are billed monthly.
* Subject to CPI increase.
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*Effective with the first day after expiration of the first twelve (12) months
of service, the fees and charges set forth in this Schedule shall be increased
over the fees and charges during the previous twelve (12) months in the amount
equal to the change in the Consumer Price Index for all Urban Consumers in the
Milwaukee, Wisconsin Metropolitan Statistical Area, All Terms, Based 1982-1984 =
100, as last reported by the U.S. Bureau of Labor Statistics ("CPI-U") during
the five (5) year period immediately preceding expiration of the first 12 month
service period. Thereafter, all of the fees and charges in this fee schedule
(except for out-of-pocket expenses) shall increase annually upon each
anniversary of this Schedule in an amount equal to the percentage change in the
CPI-U for the proceeding twelve (12) months.
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