DISTRIBUTION AGREEMENT
MONTEAGLE FUNDS
THIS DISTRIBUTION AGREEMENT (the "Agreement") is made as of the 1st day of
May, 2009 by and among the Monteagle Funds (the "Trust" or "Trusts"), a Delaware
Trust and Matrix Capital Group (the "Distributor"), a New York corporation.
WITNESSETH THAT:
WHEREAS, the Trust is registered as an open-end management investment
company under the Investment Company Act of 1940, as amended (the "1940 Act")
and has registered its shares of beneficial interest (the "Shares") under the
Securities Act of 1933, as amended (the "1933 Act") in one or more distinct
series of Shares (the "Portfolio" or "Portfolios");
WHEREAS, the Distributor is a broker-dealer registered with the U.S.
Securities and Exchange Commission (the "SEC") and a member in good standing of
the Financial Industry Regulatory Authority, Inc. (the "FINRA"); and
WHEREAS, the Trust and the Distributor desire to enter into this Agreement
pursuant to which the Distributor will provide distribution services to the
Portfolios of the Trust identified on Schedule A, as may be amended from time to
time, on the terms and conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the premises and mutual covenants
contained in this Agreement, the Trust and the Distributor, intending to be
legally bound hereby, agree as follows:
1. APPOINTMENT OF DISTRIBUTOR. The Trust hereby appoints the Distributor
as its agent for the distribution of the Shares, and the Distributor hereby
accepts such appointment under the terms of this Agreement. The Trust shall not
sell any Shares to any person except to fill orders for the Shares received
through the Distributor; provided, however, that the foregoing exclusive right
shall not apply: (i) to Shares issued or sold in connection with the merger or
consolidation of any other investment company with the Trust or the acquisition
by purchase or otherwise of all or substantially all of the assets of any
investment company or substantially all of the outstanding shares of any such
company by the Trust; (ii) to Shares which may be offered by the Trust to its
shareholders for reinvestment of cash distributed from capital gains or net
investment income of the Trust; or (iii) to Shares which may be issued to
shareholders of other Trusts who exercise any exchange privilege set forth in
the Trust's Prospectus. Notwithstanding any other provision hereof, the Trust
may terminate, suspend, or withdraw the offering of the Shares whenever, in its
sole discretion, it deems such action to be desirable, and the Distributor shall
process no further orders for Shares after it receives notice of such
termination, suspension or withdrawal.
2. TRUST DOCUMENTS. The Trust has provided the Distributor with properly
certified or authenticated copies of the following Trust related documents in
effect on the date hereof: the Trust's organizational documents, including Trust
document and by-laws; the Trust's Registration Statement on Form N-1A, including
all exhibits thereto; the Trust's most current Prospectus and Statement of
Additional Information; and resolutions of the Trust's Board of Trustees
authorizing the appointment of the Distributor and approving this Agreement. The
Trust shall promptly provide to the Distributor copies, properly certified or
authenticated, of all amendments or supplements to the foregoing. The Trust
shall provide to the Distributor copies of all other information which the
Distributor may reasonably request for use in connection with the distribution
of Shares, including, but not limited to, a certified copy of all financial
statements prepared for the Trust by its independent public accountants. The
Trust shall also supply the Distributor with such number of copies of the
current Prospectus, Statement of Additional Information and shareholder reports
as the Distributor shall reasonably request.
3. DISTRIBUTION SERVICES. The Distributor shall sell and repurchase Shares
as set forth below; subject to the registration requirements of the 1933 Act and
the rules and regulations thereunder, and the laws governing the sale of
securities in the various states ("Blue Sky Laws"):
a. The Distributor, as agent for the Trust, shall sell Shares to the
public against orders therefore at the public offering price, as
determined in accordance with the Trust's then current Prospectus
and Statement of Additional Information. The sales load paid to the
Distributor will be disbursed by the Distributor to i) the selling
broker/dealer according to the schedule in the then current
prospectus; and ii) the retained commissions to the wholesaler
responsible for the broker/dealer relationship; and iii) any
remaining amounts shall be applied to the Trust's 12b-1 eligible
distribution expenses
b. The net asset value of the Shares shall be determined in the manner
provided in the then current Prospectus and Statement of Additional
Information. The net asset value of the Shares shall be calculated
by the Trust or by another entity on behalf of the Trust. The
Distributor shall have no duty to inquire into or liability for the
accuracy of the net asset value per Share as calculated.
c. Upon receipt of purchase instructions, the Distributor shall
transmit such instructions to the Trust or its transfer agent for
registration of the Shares purchased.
d. The Distributor shall also have the right to take, as agent for the
Trust, all legally permissible actions that, in the Distributor's
judgment, are necessary to effect the distribution of Shares.
e. Nothing in this Agreement shall prevent the Distributor or any
"affiliated
person" from buying, selling or trading any securities for its or
their own account or for the accounts of others for whom it or they
may be acting; provided, however, that the Distributor expressly
agrees that it shall not for its own account purchase any Shares of
the Trust except for investment purposes and that it shall not for
its own account sell any such Shares except for redemption of such
Shares by the Trust, and that it shall not undertake activities
which, in its judgment, would adversely affect the performance of
its obligations to the Trust under this Agreement.
f. The Distributor, as agent for the Trust, shall repurchase Shares at
such prices and upon such terms and conditions as shall be specified
in the Prospectus.
4. DISTRIBUTION SUPPORT SERVICES. In addition to the sale and repurchase
of Shares, the Distributor shall perform the distribution support services set
forth on Schedule B attached hereto, as may be amended from time to time. Such
distribution support services shall include: Review of sales and marketing
literature and submission to the FINRA; FINRA record keeping; and quarterly
reports to the Trust's Board of Trustees. Such distribution support services may
also include: fulfillment services, including telemarketing, printing, mailing
and follow-up tracking of sales leads; and licensing Adviser or Trust personnel
as registered representatives of the Distributor and related supervisory
activities.
5. REASONABLE EFFORTS. The Distributor shall use all reasonable efforts in
connection with the distribution of Shares. The Distributor shall have no
obligation to sell any specific number of Shares and shall only sell Shares
against orders received therefore. The Trust shall retain the right to refuse at
any time to sell any of its Shares for any reason deemed adequate by it.
6. COMPLIANCE. In furtherance of the distribution services being provided
hereunder, the Distributor and the Trust agree as follows:
a. The Distributor shall comply with the Rules of Conduct of the FINRA
and the securities laws of any jurisdiction in which it sells,
directly or indirectly, Shares.
b. The Distributor shall require each dealer with whom the Distributor
has a selling agreement to conform to the applicable provisions of
the Trust's most current Prospectus and Statement of Additional
Information..
c. The Trust agrees to furnish to the Distributor sufficient copies of
any agreements, plans, communications with the public or other
materials it intends to use in connection with any sales of Shares
in a timely manner in order to allow the Distributor to review,
approve and file, if required, such materials with the appropriate
regulatory authorities and obtain clearance for use. The Trust
agrees not to use any such materials until so filed and
cleared for use by the Distributor and if required, by the FINRA or
other appropriate authority.
d. The Distributor, at its own expense, shall qualify as a broker or
dealer, or otherwise, under all applicable Federal or state laws
required to permit the sale of Shares in all states and territories
of the U.S.
e. The Distributor shall not, in connection with any sale or
solicitation of a sale of the Shares, make or authorize any
representative, service organization, broker or dealer to make, any
representations concerning the Shares except those contained in the
Trust's most current Prospectus covering the Shares and in
communications with the public or sales materials approved by the
Distributor as information supplemental to such Prospectus.
7. EXPENSES.
a. The Trust shall bear the following expenses: preparation, setting in
type, and printing of sufficient copies of the Prospectus and
Statement of Additional Information for distribution to existing
shareholders; preparation and printing of reports and other
communications to existing shareholders; distribution of copies of
the Prospectus, Statement of Additional Information and all other
communications to existing shareholders; registration of the Shares
under the Federal securities laws; qualification of the Shares for
sale in the jurisdictions mutually agreed upon by the Trust and the
Distributor; transfer agent/shareholder servicing agent services;
supplying information, prices and other data to be furnished by the
Trust under this Agreement; and any original issue taxes or transfer
taxes applicable to the sale or delivery of the Shares or
certificates therefore.
b. To the extend permitted under a plan adopted pursuant to rule 12b-1
or otherwise permitted under the 1940 Act, the Trust shall pay
expenses incident to the sale and distribution of the Shares sold
hereunder, including, without limitation: printing and distributing
copies of the Prospectus, Statement of Additional Information and
reports prepared for use in connection with the offering of Shares
for sale to the public; advertising in connection with such
offering, including public relations services, sales presentations,
media charges, preparation, printing and mailing of advertising and
sales literature; data processing necessary to support a
distribution effort; distribution and shareholder servicing
activities of broker-dealers and other financial institutions;
filing fees required by regulatory authorities for sales literature
and advertising materials; any additional out-of-pocket expenses
incurred in connection with the foregoing and any other costs of
distribution. The Adviser shall
be responsible for any of the foregoing expenses that the Trust is
ineligible to pay under the 1940 Act provided the Adviser
preapproved the expense.
8. COMPENSATION. For the distribution and distribution support services
provided by the Distributor pursuant to the terms of the Agreement, the Trust
shall pay to the Distributor the compensation set forth in Schedule A attached
hereto, which schedule may be amended from time to time. The Trust shall also
reimburse the Distributor for its out-of-pocket expenses related to the
performance of its duties hereunder, including, without limitation,
telecommunications charges, postage and delivery charges, record retention
costs, reproduction charges and traveling and lodging expenses incurred by
officers and employees of the Distributor. The Trust shall pay the Distributor's
monthly invoices for distribution fees and out-of-pocket expenses within ten
days of the respective month-end. If this Agreement becomes effective subsequent
to the first day of the month or terminates before the last day of the month,
the Trust shall pay to the Distributor a distribution fee that is prorated for
that part of the month in which this Agreement is in effect. All rights of
compensation and reimbursement under this Agreement for services performed by
the Distributor up to the termination date shall survive the termination of this
Agreement.
9. USE OF DISTRIBUTOR'S NAME. The Trust shall not use the name of the
Distributor or any of its affiliates in the Prospectus, Statement of Additional
Information, sales literature or other material relating to the Trust in a
manner not approved prior thereto in writing by the Distributor; provided,
however, that the Distributor shall approve all uses of its and its affiliates'
names that merely refer in accurate terms to their appointments or that are
required by the Securities and Exchange Commission (the "SEC") or any state
securities commission; and further provided, that in no event shall such
approval be unreasonably withheld.
10. USE OF TRUST'S NAME. Neither the Distributor nor any of its affiliates
shall use the name of the Trust or materials relating to the Trust on any forms
(including any checks, bank drafts or bank statements) for other than internal
use in a manner not approved prior thereto by the Trust; provided, however, that
the Trust shall approve all uses of its name that merely refer in accurate terms
to the appointment of the Distributor hereunder or that are required by the SEC
or any state securities commission; and further provided, that in no event shall
such approval be unreasonably withheld.
11. LIABILITY OF DISTRIBUTOR. The duties of the Distributor shall be
limited to those expressly set forth herein, and no implied duties are assumed
by or may be asserted against the Distributor hereunder. The Distributor shall
not be liable for any error of judgment or mistake of law or for any loss
suffered by the Trust in connection with the matters to which this Agreement
relates, except to the extent of a loss resulting from willful misfeasance, bad
faith or negligence, or reckless disregard of its obligations and duties under
this Agreement. As used in this Section 11 and in Section 12 (except the second
paragraph of Section 12), the term "Distributor" shall include directors,
officers, employees and other agents of the Distributor.
12. INDEMNIFICATION OF DISTRIBUTOR. The Trust shall indemnify and hold
harmless the Distributor against any and all liabilities, losses, damages,
claims and expenses (including, without limitation, reasonable attorneys' fees
and disbursements and investigation expenses incident thereto) which the
Distributor may incur or be required to pay hereafter, in connection with any
action, suit or other proceeding, whether civil or criminal, before any court or
administrative or legislative body, in which the Distributor may be involved as
a party or otherwise or with which the Distributor may be threatened, by reason
of the offer or sale of the Trust shares prior to the effective date of this
Agreement.
Any director, officer, employee, shareholder or agent of the
Distributor who may be or become an officer, director, employee or agent of the
Trust, shall be deemed, when rendering services to the Trust or acting on any
business of the Trust (other than services or business in connection with the
Distributor's duties hereunder), to be rendering such services to or acting
solely for the Trust and not as a director, officer, employee, shareholder or
agent, or one under the control or direction of the Distributor, even though
receiving a salary from the Distributor.
The Trust agrees to indemnify and hold harmless the Distributor, and
each person who controls the Distributor within the meaning of Section 15 of the
1933 Act, or Section 20 of the Securities Exchange Act of 1934, as amended
("1934 Act"), against any and all liabilities, losses, damages, claims and
expenses, joint or several (including, without limitation, reasonable attorneys'
fees and disbursements and investigation expenses incident thereto) to which
they, or any of them, may become subject under the 1933 Act, the 1934 Act, the
1940 Act or other Federal or state laws or regulations, at common law or
otherwise, insofar as such liabilities, losses, damages, claims and expenses (or
actions, suits or proceedings in respect thereof) arise out of or relate to any
untrue statement or alleged untrue statement of a material fact contained in a
Prospectus, Statement of Additional Information, supplement thereto, sales
literature or other written information prepared by the Trust and provided by
the Trust to the Distributor for the Distributor's use hereunder, or arise out
of or relate to 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. The Distributor (or any person controlling the Distributor)
shall not be entitled to indemnity hereunder for any liabilities, losses,
damages, claims or expenses (or actions, suits or proceedings in respect
thereof) resulting from (i) an untrue statement or omission or alleged untrue
statement or omission made in the Prospectus, Statement of Additional
Information, or supplement, sales or other literature, in reliance upon and in
conformity with information furnished in writing to the Trust by the Distributor
specifically for use therein or (ii) the Distributor's own willful misfeasance,
bad faith, negligence or reckless disregard of its duties and obligations in the
performance of this Agreement.
The Distributor agrees to indemnify and hold harmless the Trust,
each officer and Trustee of the Trust, and each person who controls the Trust
within the meaning of Section 15 of the 1933 Act, or Section 20 of the 1934 Act,
against any and all liabilities, losses, damages, claims and expenses, joint or
several (including, without
limitation reasonable attorneys' fees and disbursements and investigation
expenses incident thereto) to which they, or any of them, may become subject
under the 1933 Act, the 1934 Act, the 1940 Act or other Federal or state laws,
at common law or otherwise, insofar as such liabilities, losses, damages, claims
or expenses arise out of or relate to: (i) any untrue statement or alleged
untrue statement of a material fact contained in the Prospectus or Statement of
Additional Information or any supplement thereto if based upon information
furnished to the Trust by the Distributor specifically for use therein; (ii) the
distributor's own willful misfeasance, bad faith, negligence or reckless
disregard of its duties and obligations in the performance of this Agreement;
(iii) or arise out of or relate to 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, if based upon information furnished to the
Trust by the Distributor specifically for use therein.
A party seeking indemnification hereunder (the "Indemnitee") shall
give prompt written notice to the party from whom indemnification is sought
("Indemnitor") of a written assertion or claim of any threatened or pending
legal proceeding which may be subject to indemnity under this Section; provided,
however, that failure to notify the Indemnitor of such written assertion or
claim shall not relieve the Indemnitor of any liability arising from this
Section. The Indemnitor shall be entitled, if it so elects, to assume the
defense of any suit brought to enforce a claim subject to this Indemnity and
such defense shall be conducted by counsel chosen by the Indemnitor and
satisfactory to the Indemnitee; provided, however, that if the defendants
include both the Indemnitee and the Indemnitor, and the Indemnitee shall have
reasonably concluded that there may be one or more legal defenses available to
it which are different from or additional to those available to the Indemnitor
("conflict of interest"), the Indemnitor shall not have the right to elect to
defend such claim on behalf of the Indemnitee, and the Indemnitee shall have the
right to select separate counsel to defend such claim on behalf of the
Indemnitee. In the event that the Indemnitor elects to assume the defense of any
suit pursuant to the preceding sentence and retains counsel satisfactory to the
Indemnitee, the Indemnitee shall bear the fees and expenses of additional
counsel retained by it, except for reasonable investigation costs which shall be
borne by the Indemnitor. If the Indemnitor (i) does not elect to assume the
defense of a claim, (ii) elects to assume the defense of a claim but chooses
counsel that is not satisfactory to the Indemnitee or (iii) has no right to
assume the defense of a claim because of a conflict of interest, the Indemnitor
shall advance or reimburse the Indemnitee, at the election of the Indemnitee,
reasonable fees and disbursements of any counsel retained by Indemnitee,
including reasonable investigation costs.
13. DUAL EMPLOYEES. The Adviser agrees that only its employees who are
registered representatives of the Distributor ("dual employees") shall offer or
sell Shares of the Portfolios and further agrees that the activities of any such
employees as registered representatives of the Distributor shall be limited to
offering and selling Shares. If there are dual employees, one employee of the
Adviser shall register as a principal of the Distributor and assist the
Distributor in monitoring the marketing and sales activities of the dual
employees. If there are dual employees, the Adviser shall indemnify and hold
harmless the Distributor against any and all liabilities, losses, damages,
claims and
expenses (including reasonable attorneys' fees and disbursements and
investigation costs incident thereto) arising from or related to the Adviser's
employees' activities as registered representatives of the Distributor,
including, without limitation, any and all such liabilities, losses, damages,
claims and expenses arising from or related to the breach by such dual employees
of any rules or regulations of the FINRA or SEC.
14. FORCE MAJEURE. The Distributor shall not be liable for any delays or
errors occurring by reason of circumstances not reasonably foreseeable and
beyond its control, including, but not limited, to acts of civil or military
authority, national emergencies, work stoppages, fire, flood, catastrophe, acts
of God, insurrection, war, riot or failure of communication or power supply. In
the event of equipment breakdowns which are beyond the reasonable control of the
Distributor and not primarily attributable to the failure of the Distributor to
reasonably maintain or provide for the maintenance of such equipment, the
Distributor shall, at no additional expense to the Trust, take reasonable steps
in good faith to minimize service interruptions, but shall have no liability
with respect thereto.
15. SCOPE OF DUTIES. The Distributor and the Trust shall regularly consult
with each other regarding the Distributor's performance of its obligations and
its compensation under the foregoing provisions. In connection therewith, the
Trust shall submit to the Distributor at a reasonable time in advance of filing
with the SEC copies of any amended or supplemented Registration Statement of the
Trust (including exhibits) under the 1940 Act and the 1933 Act, and at a
reasonable time in advance of their proposed use, copies of any amended or
supplemented forms relating to any plan, program or service offered by the
Trust. Any change in such materials that would require any change in the
Distributor's obligations under the foregoing provisions shall be subject to the
Distributor's approval. In the event that a change in such documents or in the
procedures contained therein increases the cost or burden to the Distributor of
performing its obligations hereunder, the Distributor shall be entitled to
receive reasonable compensation therefore.
16. DURATION. This Agreement shall become effective as of the date first
above written, and shall continue in force for two years from that date and
thereafter from year to year, provided continuance is approved at least annually
by either (i) the vote of a majority of the Trustees of the Trust, or by the
vote of a majority of the outstanding voting securities of the Trust, and (ii)
the vote of a majority of those Trustees of the Trust who are not interested
persons of the Trust, and who are not parties to this Agreement or interested
persons of any such party, cast in person at a meeting called for the purpose of
voting on the approval.
17. TERMINATION. This Agreement shall terminate as follows:
a. This Agreement shall terminate automatically in the event of its
assignment.
b. This Agreement shall terminate upon the failure to approve the
continuance of the Agreement after the initial two year term as set
forth in Section 16 above.
c. This Agreement shall terminate at any time upon a vote of the
majority of the Trustees who are not interested persons of the Trust
or by a vote of the majority of the outstanding voting securities of
the Trust, upon not less than 60 days prior written notice to the
Distributor.
d. The Distributor may terminate this Agreement upon not less than 60
days prior written notice to the Trust.
Upon the termination of this Agreement, the Trust shall pay to the
Distributor such compensation and out-of-pocket expenses as may be payable for
the period prior to the effective date of such termination. In the event that
the Trust designates a successor to any of the Distributor's obligations
hereunder, the Distributor shall be entitled to reimbursement by the Trust of
its reasonable out-of-pocket expenses in connection with such transfer to such
successor all relevant books, records and other data established or maintained
by the Distributor pursuant to the foregoing provisions.
Sections 9, 10, 11, 12, 13, 17, 21, 22, 23, 24, 25 and 26 shall survive
any termination of this Agreement.
18. AMENDMENT. 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, the Adviser and the Trust and shall not
become effective unless its terms have been approved by the majority of the
Trustees of the Trust or by a "vote of a majority of the outstanding voting
securities" of the Trust and by a majority of those Trustees who are not
"interested persons" of the Trust or any party to this Agreement.
19. NON-EXCLUSIVE SERVICES. The services of the Distributor rendered to
the Trust are not exclusive. The Distributor may render such services to any
other investment company.
20. DEFINITIONS. As used in this Agreement, the terms "vote of a majority
of the outstanding voting securities," "assignment," "interested person" and
"affiliated person" shall have the respective meanings specified in the 1940 Act
and the rules enacted thereunder as now in effect or hereafter amended.
21. CONFIDENTIALITY. The Distributor shall treat confidentially and as
proprietary information of the Trust all records and other information relating
to the Trust and prior, present or potential shareholders and shall not use such
records and information for any purpose other than performance of its
responsibilities and duties hereunder, except as may be required by
administrative or judicial tribunals or as requested by the Trust.
22. NOTICE. Any notices and other communications required or permitted
hereunder shall be in writing and shall be effective upon delivery by hand or
upon receipt if sent by certified or registered mail (postage prepaid and return
receipt requested) or by a nationally recognized overnight courier service
(appropriately marked for overnight delivery) or upon transmission if sent by
telex or facsimile (with request for immediate confirmation of receipt in a
manner customary for communications of such respective type and with physical
delivery of the communication being made by one or the other means specified in
this Section 20 as promptly as practicable thereafter). Notices shall be
addressed as follows:
(a) IF TO THE TRUST:
Monteagle Funds
000 Xxxxx Xxxxxx Xxxxx, Xxxxx 000
Xxxxxxxxx, Xxxxxxxxx 00000
Attn: Xxxx X. Xxxxxxx, President
Fax: 000.000.0000
(c) IF TO THE DISTRIBUTOR:
Matrix Capital Group
000 Xxxxxxxxx Xxxxxx Xxxxx 000
Xxx Xxxx, XX 00000-0000
Attn: Xxxxxxxxxxx X. Xxxx, President
Fax: 000.000.0000
or to such other respective addresses as the parties shall designate by like
notice, provided that notice of a change of address shall be effective only upon
receipt thereof.
23. SEVERABILITY. If any provision of this Agreement shall be held or made
invalid by a court decision, statute, rule or otherwise, the remainder of this
Agreement shall not be affected thereby.
24. GOVERNING LAW. This Agreement shall be administered, construed and
enforced in accordance with the laws of the State of New York to the extent that
such laws are not preempted by the provisions of any law of the United States
heretofore or hereafter enacted, as the same may be amended from time to time.
25. ENTIRE AGREEMENT. This Agreement (including the Exhibits attached
hereto) contains the entire agreement and understanding of the parties with
respect to the subject matter hereof and supersedes all prior written or oral
agreements and understandings with respect thereto.
26. MISCELLANEOUS. Each party agrees to perform such further acts and
execute such further documents as are necessary to effectuate the purposes
hereof. 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. This Agreement may be executed in two counterparts, each of which
taken together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the day
and year first above written.
MONTEAGLE FUNDS
By: __________________________________
Xxxx X. Xxxxxxx, President
MATRIX CAPITAL GROUP, INC.
By: __________________________________
Xxxxxxxxxxx X. Xxxx, President
SCHEDULE A
MONTEAGLE FUNDS
Portfolios and Fee Schedule
Portfolios covered by Distribution Agreement:
Monteagle Fixed Income Fund
Monteagle Large Cap Growth Fund
Monteagle Value Fund
Monteagle Informed Investor Growth Fund
Monteagle Quality Growth Fund
Monteagle Select Value Fund
Fees for distribution and distribution support services on behalf of the
Portfolios:
As long as the Trusts has an agreement with Matrix Capital Group, Inc. to
provide accounting, administrative and transfer agent services there will be no
fixed costs associated with this agreement.
The Trust will pay out of pocket expenses to, but not limited to: travel,
printing, postage, telephone, registration fees for Adviser/Trust personnel,
broker/dealer fees specific to Adviser/Trust and other standard miscellaneous
items provided such expense is permissible to be paid under the Trust's 12b-1
Plan. Other out of pocket expenses will be paid by the Adviser.
SCHEDULE B
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MONTEAGLE FUNDS
Distribution Support Services
1. Provide national broker dealer for Trust registration.
2. Review, approve and submit all advertising and promotional material to
FINRA.
3. Maintain all books and records required by the FINRA in connection with
this agreement.
4. Monitor Distribution Plan and report to Board of Trustees.
5. Prepare quarterly report to Board of Trustees related to distribution
activities.
6. Subject to approval of Distributor, license personnel as registered
representatives of the Distributor to distribute shares sponsored by the
Adviser.
7. Telemarketing services (additional cost: to be negotiated).
8. Trust fulfillment services, including sampling prospective shareholders
inquiries and related mailings (additional cost: to be negotiated).
9. Any other service commonly provided to an investment company registered
under the 1940 Act by a third party distributor.
10. Negotiating and maintaining dealer agreements
11. Processing of sales commissions and 12b-1 payments
