Mutual Fund Supplement
to Dealer Sales Agreement
1. Compensation
Compensation is payable from two sources:
A. Dealer Concession. Compensation is payable as set forth in the
applicable current Prospectus, the terms of which are incorporated
herein by reference. (See such Prospectus for minimum investment
requirements and circumstances when commissions are not payable.)
B. 12b-1 fees. In addition to any commissions payable pursuant to the
preceding paragraph, for certain Fortis Funds compensation is
payable as a percentage of the current average daily net asset
value of all such accounts brought to the Fund by such Dealer.
Payment of such "12b-1 fees" requires a current minimum monthly
average daily net asset value brought by the Dealer to one or more
of the Funds having 12b-1 plans. (See the appropriate Prospectus
for details of the amount payable.) Such compensation will be paid
monthly as long as this agreement and the 12b-1 plan remain in
effect and the amount of such business remaining on the books
exceeds such minimum. Upon termination of this Agreement or the
12b-1 plan, such compensation will no longer be paid.
Notwithstanding anything contained herein or the Fortis Funds'
prospectuses to the contrary, the Dealer's right to 12b-1 fees
shall be limited or terminated to the extent that any Fortis Fund
ceases to accrue and/or pay 12b-1 fees by reasons of the
application of the limitations imposed on sales charges, including
asset-based sales charges, by the rules of the National Association
of Securities Dealers, Inc.
In return for the payments of these 12b-1 fees associated with
certain Fortis Funds, at least to the extent that any Fortis Fund
has adopted a service fee plan as a part of any 12b-1 plan, the
Dealer shall provide personal account maintenance services to the
shareholders of such Fortis Funds for those accounts which have
been assigned to the Dealer. Such services shall include, but not
be limited to, assisting the shareholder with elections and changes
in elections of shareholder services and options provided by the
Fortis Fund, changes in registration, assistance with processing
proxy solicitations, and generally answering the shareholder's
questions concerning the account and the Fortis Fund in which it is
invested.
2. Orders
A. Purchases. The Dealer agrees to place purchase orders with
Investors immediately for the same number of shares and at the same
price as any sales by the Dealer.
All purchases shall be paid for within the time period required by
applicable laws and/or regulations. Otherwise, Investors reserves
the right, without notice, to immediately cancel the sale and, at
its option, to sell the shares ordered by Investors back to the
Fund -- in which case, Investors may hold the Dealer responsible
for any resulting loss suffered by Investors or the Fund.
If any Fund shares sold to the Dealer under the terms of the
Agreement are repurchased by the Funds, or are tendered for
redemption to Investors or the Funds within seven business days
after confirmation of the original purchase, the Dealer's right to
any compensation received on such shares will be forfeited.
Investors will notify the Dealer of any such repurchase or
redemption within ten business days after delivery of the
certificate or written notice to Investors or the Fund, and the
Dealer shall thereafter promptly refund to Investors the full
compensation allowed on such sale (if it shall already have been
paid to Dealer). If such refund is not made promptly, any such
unrepaid compensation may be deducted from any other sums owed by
Investors or any affiliated companies, as described in the Dealer
Sales Agreement.
B. Redemptions. While Fund redemptions indicated by the Dealer may be
either oral or in writing, if properly executed share certificates
(or satisfactory written authorization in the case of
uncertificated shares) are not received by Investors within 10 days
after its acceptance of the redemption order, Investors reserves
the right, without prior notice, to cancel such sale, in which case
it may hold the Dealer responsible for any resulting loss.
3. Other This Agreement shall be interpreted so as to be in compliance with
the requirements of Rule 12b-1 under the Investment Company Act of
1940 insofar as it relates to the sale of shares of those funds
having 12b-1 plans.
