EXHIBIT 99.(e)(3)(2)
DISTRIBUTION AGREEMENT
THIS AGREEMENT is made as of this 8th day of June, 2007, by and between
Giant 5 Funds, a Delaware statutory trust (the "Trust"), and UMB Distribution
Services, LLC, a Wisconsin limited liability company (the "Distributor").
WHEREAS, the Trust is an open-end investment company registered under the
Investment Company Act of 1940, as amended (the "1940 Act") and is authorized to
issue shares of beneficial interests in separate series with each such series
representing interests in a separate portfolio of securities and other assets;
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"); and
WHEREAS, the Trust and Distributor desire to enter into an agreement
pursuant to which Distributor shall be the distributor of the shares of the
Trust representing the investment portfolios described on Schedule A hereto and
any additional shares and/or investment portfolios the Trust and Distributor may
agree upon and include on Schedule A as such Schedule may be amended from time
to time (such shares and any additional shares are referred to as the "Shares"
and such investment portfolios and any additional investment portfolios are
individually referred to as a "Fund" and collectively the "Funds").
NOW, THEREFORE, in consideration of the mutual promises and agreements
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 THE DISTRIBUTOR.
The Trust hereby appoints the Distributor as agent for the distribution of
the Shares, on the terms and for the period set forth in this Agreement.
Distributor hereby accepts such appointment as agent for the distribution of the
Shares on the terms and for the period set forth in this Agreement.
2. SERVICES AND DUTIES OF THE DISTRIBUTOR.
2.1 Distributor will act as agent for the distribution of Shares in
accordance with the instructions of the Trust's Board of Trustees and the
registration statement and prospectuses then in effect with respect to the Funds
under the Securities Act of 1933, as amended (the "1933 Act").
2.2 Distributor may incur expenses for appropriate distribution activities
which it deems reasonable which are primarily intended to result in the sale of
Shares, including, but not limited to, advertising, the printing and mailing of
prospectuses to other than current shareholders, and the
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printing and mailing of sales literature. At the direction of the Trust,
Distributor may enter into servicing and/or selling agreements with qualified
broker/dealers and other persons with respect to the offering of Shares to the
public, and if it so chooses Distributor may act as principal. The Distributor
shall not be obligated to incur any specific expenses nor sell any certain
number of Shares of any Fund.
2.3 All Shares of the Funds offered for sale by Distributor shall be
offered for sale to the public at a price per share (the "offering price")
provided in the Funds' then current prospectus. The Distributor shall have no
liability for the payment of the purchase price of the Shares sold pursuant to
this Agreement or with respect to redemptions or repurchases of Shares.
2.4 Distributor shall act as distributor of the Shares in compliance in all
material respects with all applicable laws, rules and regulations, including,
without limitation, all rules and regulations made or adopted pursuant to the
1940 Act, by the Securities and Exchange Commission (the "Commission") and the
NASD.
2.5 Distributor shall not utilize any materials in connection with the
sales or offering of Shares except the Trust's prospectus and statement of
additional information and such other materials as the Trust shall provide or
approve. The Distributor agrees to provide compliance review of all sales
literature and marketing materials prepared for use by or on behalf of the Trust
in advance of the use of such materials. The Trust agrees to incorporate such
changes to such materials as the Distributor shall request. The Distributor will
file the materials as may be required with the NASD, the Commission or state
securities commissioners. The Trust 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. All advertising
and sales literature related to the Trust shall be delivered to the Distributor
for review prior to use with sufficient time to permit the Distributor to review
the material and to file with the NASD if necessary. The Trust and the
Distributor shall mutually agree upon a reasonable turnaround time for such
review. All advertising and sales literature related to the Trust that is in use
prior to the execution of this Agreement shall be delivered to the Distributor
and the Distributor shall file such material with the NASD, if necessary, within
10 days of first use after the date of this Agreement.}
2.6 As compensation for the services performed hereunder and the expenses
incurred by Distributor, the Distributor shall be entitled to the fees and be
reimbursed the expenses as provided in Exhibit B hereto.
3. DUTIES AND REPRESENTATIONS OF THE TRUST.
3.1 The Trust represents that it is registered as an open-end management
investment company under the 1940 Act and that it has and will continue to act
in conformity with its Declaration of Trust, By-Laws, its registration statement
as may be amended from time to time and resolutions and other instructions of
its Board of Trustees and has and will continue to comply with all applicable
laws, rules and regulations including without limitation the 1933 Act, the 1934
Act, the 1940 Act, the laws of the states in which shares of the Funds are
offered and sold, and the rules and regulations thereunder.
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3.2 The Trust shall take or cause to be taken all necessary action to
register and maintain the registration of the Shares under the 1933 Act for sale
as herein contemplated and shall pay all costs and expenses in connection with
the registration of Shares under the 1933 Act, and be responsible for all
expenses in connection with maintaining facilities for the issue and transfer of
Shares and for supplying information, prices and other data to be furnished by
the Trust hereunder.
3.3 The Trust shall execute any and all documents and furnish any and all
information and otherwise take all actions which may be reasonably necessary in
the discretion of the Trust's officers in connection with the qualification of
the Shares for sale in such states as Distributor and the Trust may approve,
shall maintain the qualification of a sufficient number or amount of shares
thereunder, and shall pay all costs and expenses in connection with such
qualification. The Trust shall notify the Distributor, or cause it to be
notified, of the states in which the Shares may be sold and shall notify the
Distributor of any change to the information.
3.4 The Trust shall, at its expense, keep the Distributor fully informed
with regard to its affairs. In addition, the Trust shall furnish Distributor
from time to time such information, documents and reports with respect to the
Trust and the Shares as Distributor may reasonably request, and the Trust
warrants that the statements contained in any such information shall be true and
correct and fairly represent what they purport to represent.
3.5 The Trust represents to Distributor that all registration statements
and prospectuses of the Trust filed or to be filed with the Commission under the
1933 Act and 1940 Act with respect to the Shares have been and will be prepared
in conformity with the requirements of the 1933 Act, the 1940 Act, and the rules
and regulations of the Commission thereunder. As used in this Agreement the
terms "registration statement" and "prospectus" shall mean any registration
statement and prospectus (together with the related statement of additional
information) at any time now or hereafter filed with the Commission with respect
to any of the Shares and any amendments and supplements thereto which at any
time shall have been or will be filed with said Commission. The Trust represents
and warrants to Distributor that any registration statement and prospectus, when
such registration statement becomes effective, will contain all statements
required to be stated therein in conformity with the 1933 Act, the 1940 Act and
the rules and regulations of the Commission; that all information contained in
the registration statement and prospectus will be true and correct in all
material respects when such registration statement becomes effective; and that
neither the registration statement nor any prospectus when such registration
statement becomes effective will include an untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading. The Trust agrees to file from time
to time such amendments, supplements, reports and other documents as may be
necessary or required in order to comply with the 1933 Act and the 1940 Act and
in order that there may be no untrue statement of a material fact in a
registration statement or prospectus, or necessary or required in order that
there may be no omission to state a material fact in the registration statement
or prospectus which omission would make the statements therein misleading. The
Trust shall promptly notify the Distributor of any advice given to it by counsel
to the Trust regarding the necessity or advisability of amending or
supplementing the registration statement.
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3.6 The Trust shall not file any amendment to the registration statement or
supplement to any prospectus without giving Distributor reasonable notice
thereof in advance and if the Distributor declines to assent to such amendment
(after a reasonable time), the Trust may terminate this Agreement forthwith by
written notice to the Distributor without payment of any penalty. If the Trust
shall not propose an amendment or amendments and/or supplement or supplements
promptly after receipt by the Trust of a written request in good faith from
Distributor to do so, Distributor may, at its option, immediately terminate this
Agreement. In addition, if, at any time during the term of this Agreement, the
Distributor requests the Trust to make any change in its governing instruments
or in its methods of doing business which are necessary in order to comply with
any requirement of applicable law or regulation, and the Trust fails to make any
such change as requested, the Distributor may terminate this Agreement forthwith
by written notice to the Trust without payment of any penalty. Nothing contained
in this Agreement shall in any way limit the Trust's right or obligation to file
at any time any amendments to any registration statement and/or supplements to
any prospectus, of whatever character, as the Trust may deem advisable, with
advice of its counsel, such right being in all respects absolute and
unconditional.
3.7 Whenever in their judgment such action is warranted by market, economic
or political conditions, or by circumstances of any kind, the Trust may decline
to accept any orders for, or make any sales of, any Shares until such time as it
deems it advisable to accept such orders and to make such sales and the Trust
shall advise Distributor promptly of such determination.
3.8 The Trust agrees to advise the Distributor promptly in writing:
(i) of any correspondence or other communication by the Commission or
its staff relating to the Funds including requests by the Commission for
amendments to the registration statement or prospectuses;
(ii) in the event of the issuance by the Commission of any stop order
suspending the effectiveness of the registration statement or prospectuses 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 registration statement or prospectuses or which
requires the making of a change in such registration statement or prospectuses
in order to make the statements therein not misleading; and
(iv) of all actions taken by the Commission with respect to any
amendments to any registration statement or prospectus which may from time to
time be filed with the Commission.
4. INDEMNIFICATION.
4.1(a) The Trust authorizes Distributor to use any prospectus or statement
of additional information, in the form furnished to Distributor from time to
time, in connection with the sale of Shares. The Trust shall indemnify, defend
and hold the Distributor, and each of its present or former directors, members,
officers, employees, representatives and any person who controls or previously
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controlled the Distributor within the meaning of Section 15 of the 1933 Act
("Distributor Indemnitees"), free and harmless (a) from and against any and all
losses, claims, demands, liabilities, damages, charges, payments, costs and
expenses (including the costs of investigating or defending any alleged losses,
claims, demands, liabilities, damages, charges, payments, costs or expenses and
any counsel fees incurred in connection therewith) of any and every nature
("Losses") which Distributor and/or each of the Distributor Indemnitees 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, an
annual or interim report to shareholders or sales literature, or any amendments
or supplements thereto, 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; provided, however, that
the Trust's obligation to indemnify 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
therein in reliance upon and in conformity with information relating to the
Distributor and furnished to the Trust or its counsel by Distributor in writing
for the purpose of, and used in, the preparation thereof; (b) from and against
any and all Losses which Distributor and/or each of the Distributor Indemnitees
may incur in connection with this Agreement or the Distributor's performance
hereunder, except to the extent the Losses result from the Distributor's willful
misfeasance, bad faith or gross negligence in the performance of its duties, or
by reason of its reckless disregard of its obligations and duties under this
Agreement, (c) from and against any and all Losses which Distributor and/or each
of the Distributor Indemnitees may incur resulting from the actions or inactions
of any prior service provider to the Funds, or (d) from and against any and all
Losses which Distributor and/or each of the Distributor Indemnitees may incur
when acting in accordance with instructions from the Trust or its
representatives. Promptly after receipt by the Distributor of notice of the
commencement of an investigation, action, claim or proceeding, the Distributor
shall, if a claim for indemnification in respect thereof is to made under this
section, notify the Trust in writing of the commencement thereof, although the
failure to do so shall not prevent recovery by the Distributor or any
Distributor Indemnitee.
4.1(b) The Trust 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
Trust elects to assume the defense, such defense shall be conducted by counsel
chosen by the Trust and approved by the Distributor, which approval shall not be
unreasonably withheld. In the event the Trust elects to assume the defense of
any such suit and retain such counsel and notifies the Distributor of such
election, the indemnified defendant or defendants in such suit shall bear the
fees and expenses of any additional counsel retained by them subsequent to the
receipt of the Trust's election. If the Trust 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 Trust, or in case there
is a conflict of interest between the Trust and the Distributor or any of the
Distributor Indemnitees, the Trust 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 Trust's indemnification
agreement contained in this Section 4.1 and the Trust's representations and
warranties in this Agreement shall remain operative and in full force and effect
regardless of any investigation made by or on behalf of the Distributor and each
of the Distributor Indemnitees, and shall survive the delivery of any Shares and
the termination of this Agreement.
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This agreement of indemnity will inure exclusively to the Distributor's benefit,
to the benefit of each of the Distributor Indemnitees, and their estates and
successors. The Trust agrees promptly to notify Distributor of the commencement
of any litigation or proceedings against the Trust or any of its officers or
trustees in connection with the issue and sale of any of the Shares.
4.1(c) The Trust acknowledges and agrees that in the event the Distributor,
at the direction of the Trust, is required to give indemnification to any entity
selling Shares or providing shareholder services to shareholders or others and
such entity shall make a claim for indemnification against the Distributor, the
Distributor shall make a similar claim for indemnification against the Trust and
shall be entitled to such indemnification.
4.2(a) Distributor shall indemnify, defend and hold the Trust, and each of
its present or former trustees, officers, employees, representatives, and any
person who controls or previously controlled the Trust within the meaning of
Section 15 of the 1933 Act ("Trust Indemnitees"), free and harmless from and
against any and all Losses which the Trust, and each of its present or former
trustees, 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, (a) arising out of or based upon any untrue, or alleged untrue,
statement of a material fact contained in the Trust's registration statement or
any prospectus, as from time to time amended or supplemented, 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,
information relating to the Distributor and furnished in writing to the Trust or
its counsel by the Distributor for the purpose of, and used in, the preparation
thereof, and (b) to the extent any Losses arise out of or result from the
Distributor's willful misfeasance, bad faith or gross negligence in the
performance of its duties, or by reason of its reckless disregard of its
obligations and duties under this Agreement; Distributor's agreement to
indemnify the Trust and any of the Trust Indemnitees shall not be deemed to
cover any Losses to the extent they arise out of or result from the Trust's
willful misfeasance, bad faith or negligence in the performance of its duties,
or by reason of its reckless disregard of its obligations and duties, under this
Agreement. Promptly after receipt by the Trust of notice of the commencement of
an investigation, action, claim or proceeding, the Trust shall, if a claim for
indemnification in respect thereof is to made under this section, notify the
Distributor in writing of the commencement thereof, although the failure to do
so shall not prevent recovery by the Trust or any Trust Indemnitee.
4.2(b) 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 Trust, 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 and notifies the
distributor of such election, the indemnified defendant or defendants in such
suit shall bear the fees and expenses of any additional counsel retained by them
subsequent to the receipt of the Distributor's election. If the Distributor does
not elect to assume the defense of any such suit, or in case the Trust does not,
in the exercise of reasonable judgment, approve of counsel chosen by the
Distributor, the Distributor will reimburse the indemnified person or persons
named as defendant or defendants in such suit, for the fees and expenses of any
counsel
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retained by the Trust and them. The Distributor's indemnification agreement
contained in this Section 4.2 and the Distributor's representations and
warranties in this Agreement shall remain operative and in full force and effect
regardless of any investigation made by or on behalf of the Trust or any of the
Trust Indemnitees, and shall survive the delivery of any Shares and the
termination of this Agreement. This agreement of indemnity will inure
exclusively to the Trust's benefit, to the benefit of each of the Trust
Indemnitees and their estates and successors. The Distributor agrees promptly to
notify the Trust of the commencement of any litigation or proceedings against
the Distributor or any of its officers or members in connection with the issue
and sale of any of the Shares.
5. OFFERING OF SHARES.
No Shares shall be offered by either the Distributor or the Trust under any
of the provisions of this Agreement and no orders for the purchase or sale of
such Shares hereunder shall be accepted by the Trust if and so long as the
effectiveness of the registration statement then in effect or any necessary
amendments thereto shall be suspended under any of the provisions of the 1933
Act, or if and so long as the current prospectus as required by Section 10 of
the 1933 Act, as amended, is not on file with the Commission; provided, however,
that nothing contained in this paragraph 5 shall in any way restrict or have an
application to or bearing upon the Trust's obligation to repurchase Shares from
any shareholder in accordance with the provisions of the prospectus or Articles
of Trust.
6. LIMITATION OF LIABILITY
6.1 The Distributor shall not be liable for any error of judgment or
mistake of law or for any loss suffered by the Company in connection with the
performance of its obligations and duties under this Agreement, except a loss
resulting from the Distributor's willful misfeasance, bad faith or gross
negligence in the performance of such duties and obligations, or by reason of
its reckless disregard thereof. Furthermore, notwithstanding anything herein to
the contrary, the Distributor shall not be liable for any action taken or
omitted to be taken in accordance with instructions received by the Distributor
from an officer or representative of the Trust or for any action taken or
omitted to be taken by any prior service provider of the Funds.
6.2 The Distributor assumes no responsibility hereunder, and shall not be
liable, for any default, damage, loss of data, errors, delay or any other loss
whatsoever caused by events beyond its reasonable control. The Distributor will,
however, take all reasonable steps to minimize service interruptions for any
period that such interruption continues beyond its control. Notwithstanding
anything in this agreement to the contrary, in no event shall either party, its
affiliates or any of its or their trustees, members, officers, employees, agents
or subcontractors, be liable for lost profits or consequential damages.
7. TERM.
7.1 This Agreement shall become effective with respect to each Fund listed
on Schedule A hereof as of the date hereof and, with respect to each Fund not in
existence on that date, on the date
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an amendment to Schedule A to this Agreement relating to that Fund is executed.
Unless sooner terminated as provided herein, this Agreement shall continue in
effect with respect to each Fund until July 1, 2008. Thereafter, if not
terminated, this Agreement shall continue automatically in effect as to each
Fund for successive annual periods, provided such continuance is specifically
approved at least annually by (i) the Trust's Board of Trustees or (ii) the vote
of a majority (as defined in the 1940 Act and Rule 18f-2 thereunder) of the
outstanding voting securities of a Fund, and provided that in either event the
continuance is also approved by a majority of the Trust's Board of Trustees who
are not "interested persons" (as defined in the 0000 Xxx) of any party to this
Agreement, by vote cast in person at a meeting called for the purpose of voting
on such approval.
7.2 This Agreement may be terminated without penalty with respect to a
particular Fund (1) through a failure to renew this Agreement at the end of a
term, (2) upon mutual consent of the parties, or (3) on no less than thirty (30)
days' written notice, by the Trust's Board of Trustees, by vote of a majority
(as defined with respect to voting securities in the 1940 Act and Rule 18f-2
thereunder) of the outstanding voting securities of a Fund, or by the
Distributor (which notice may be waived by the party entitled to such notice).
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 Trust. This Agreement will also terminate automatically
in the event of its assignment (as defined in the 1940 Act).
7.3 In the event of termination of this Agreement, all reasonable expenses
associated with movement of records and materials and conversion thereof shall
be borne by the Funds. Notwithstanding anything herein to the contrary, upon the
termination of this Agreement as provided herein or the liquidation of a Fund or
the Trust, UMBDS shall deliver the records of the Trust to the Trust or its
successor distributor in a form that is consistent with UMBDS' applicable
license agreements at the expense of the Trust, and thereafter the Trust or its
designee shall be solely responsible for preserving the records for the periods
required by all applicable laws, rules and regulations.
8. MISCELLANEOUS.
8.1 The services of the Distributor rendered to the Funds are not deemed to
be exclusive. The Distributor may render such services and any other services to
others, including other investment companies. The Trust recognizes that from
time to time members, officers, and employees of the Distributor may serve as
directors, trustees, officers and employees of other entities (including other
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.
8.2 The Distributor agrees on behalf of itself and its employees to treat
confidentially and as proprietary information of the Trust all records relative
to the Funds' shareholders, not to use such records and information for any
purpose other than performance of its responsibilities and duties hereunder, and
not to disclose such information except 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 or court process, when subject
to governmental or regulatory audit or
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investigation, or when so requested by the Trust. In case of any requests or
demands for inspection of the records of the Funds, the Distributor will
endeavor to notify the Trust promptly and to secure instructions from a
representative of the Trust as to such inspection. Records and information which
have become known to the public through no wrongful act of the Distributor or
any of its employees, agents or representatives, and information which was
already in the possession of the Distributor prior to receipt thereof, shall not
be subject to this paragraph.
8.3 This Agreement shall be governed by Wisconsin law, excluding the laws
on conflicts of laws. 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 Commission thereunder. 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. In such case, the parties shall in good faith modify or
substitute such provision consistent with the original intent of the parties.
8.4 Any notice required or to be permitted to be given by either party to
the other shall be in writing and shall be deemed to have been given when sent
by registered or certified mail, postage prepaid, return receipt requested, as
follows: Notice to the Distributor shall be sent to UMB Distribution Services,
LLC, 000 Xxxx Xxxxxxxx Xxxxxx, Xxxxx X, Xxxxxxxxx, XX, 00000, Attention: Xxxxx
Xxxxxxx, and notice to the Trust shall be sent to Giant 5 Funds, 000 Xxxxx Xxxxx
Xxxxxx, Xxxxx 000, Xxxxxxxx Xxxxxxx, XX 00000 Attention: Xxxxxxx X. Xxxxxx.
8.5 This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original agreement but such counterparts shall
together constitute but one and the same instrument.
8.6 The captions of this Agreement are included for convenience of
reference only and in no way define or delimit any of the provisions hereof or
otherwise effect their construction or effect.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by a duly authorized officer as of the day and year first above
written.
GIANT 5 FUNDS
(the "Trust")
By: /s/ Xxxxxxx Xxxxxx
------------------------------------
UMB DISTRIBUTION SERVICES, LLC
(the "Distributor")
By: /s/ Xxxxx X. Xxxxxxx
------------------------------------
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SCHEDULE A
TO THE
DISTRIBUTION AGREEMENT
BY AND BETWEEN
GIANT 5 FUNDS
AND
UMB DISTRIBUTION SERVICES, LLC
NAME OF FUNDS
FUND EFFECTIVE DATE
---- --------------
Giant 5 Total Investment System 7/1/07
Giant 5 Total Index System 7/1/07
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SCHEDULE B
TO THE
DISTRIBUTION AGREEMENT
BY AND BETWEEN
GIANT 5 FUNDS
AND
UMB DISTRIBUTION SERVICES, LLC
FEES
Annual Asset-Based Fee, (complex-level)
- On the first $500 Million in combined assets 9.0 basis points, and
- On the combined assets between $500 Million and $1 Billion 7.0 basis points, and
- On the combined assets between $1 Billion and $1.5 Billion 5.0 basis points, and
- On the combined assets over $1.5 Billion 3.0 basis points
MINIMUM ANNUAL FEE, (COMPLEX-LEVEL)
Year 1: $ 135,000
Year 2: $ 175,000
Year 3: $ 200,000
Year 4: $ 225,000
The annual minimum or asset-based fee assessed does not include any optional
services, out-of-pocket and other related expenses as detailed in this schedule,
or which may be agreed to in writing by both parties in a subsequent document.
Fees for more than 2 funds, or for any foreign securities or global '40 Act
funds, will be negotiated with related terms to this Schedule and mutually
agreed upon by both parties. Each additional class in excess of 4 total for the
fund complex = $5,000/annually.
OUT-OF-POCKET AND OTHER RELATED EXPENSES
Fund Administration, Accounting and Named-Distributor out-of-pocket expenses
include, but are not limited to, XXXXX filing fees, research-related fees and
expenses, NASDAQ fees, express delivery charges and travel on behalf of fund
business. Other related expenses include fund employee licensing activities,
advertising compliance, selling agreement review and pricing of portfolio
securities.
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Custody out-of-pocket expenses include, but are not limited to, security
transfer fees, certificate fees, shipping/courier fees or charges, FDIC
insurance premiums, options/futures processing, custody wires sent/received,
check issuance charges and legal review/processing of restricted and private
placement securities. Other related expenses include DTC trades = $5.00/each,
mutual fund (RIC) trades = $10.00/each and Euroclear or global custody
processing fees or charges.
Transfer Agent and Investor Services* out-of-pocket expenses include, but are
not limited to, statement paper, check stock, envelopes, tax forms, retirement
plan documents, postage and direct delivery charges, 22c-2 fees, telephone and
long distance charges, NSCC participant charges, customer identity-check fees,
P.O. box rental, set-up/transaction charges for third-party money market funds,
year-end programming, tape/disc/inventory/record storage, toll-free number and
bank account service fees.
For all fund services provided, out-of-pocket expenses include, but are not
limited to, attorney's fees incurred in connection with responding to and
complying with SEC or other regulatory investigations, inquiries or subpoenas,
excluding routine examinations of UMB in its capacity as a service provider to
the funds.
* UMBFS will pay all fees and charges associated with the transfer agency
conversion except for out-of-pocket expenses. However, in the event the
Fund terminates the Transfer Agency Agreement within 5 years of the
effective date, the Fund shall pay the following:
Year 1: 100% of conversion costs
Year 2: 80% of conversion costs
Year 3: 60% of conversion costs
Year 4: 40% of conversion costs
Year 5: 20% of conversion costs
OPTIONAL SERVICES - TRANSFER AGENT AND INVESTOR SERVICES
Voice Response Unit (VRU):
Initial set-up fee $3,000
Maintenance fee, annual $1,800
per call, each $.40 per call
Advanced Reporting Solutions (ARS), annual (includes one license) $3,500
Additional ARS licenses:
Additional interactive user license (per license, per year) $1,000
Analyst named user license (per license, per year) $2,500
Shareholder Browser on-line services:
Initial set-up fee $5,000
Maintenance fee, annual $2,500
per inquiry, each $.15 per inquiry
New account set-up, one-time $1.60 per account
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per transaction/account maintenance, each $.50 per transaction
Web-based document mailings:
Initial set-up fee $1,500
per shareholder, per mailing $.10 each
Provide files to 'Vision' or 'Advisor Central', per service,
per month $600
Escheatment filing (per state) $50.00
* If applicable, during the period when the Administration & Fund Accounting,
Named-Distributor and Custody Agreements are effective, pending the
conversion of the transfer agency function, the fees for services detailed
above shall be discounted 50% (except for out-of-pocket expenses).
Additional fees of $175 per hour or as quoted may apply for custom programming
to meet specialized servicing requirements.
Fees for services not contemplated by this schedule will be negotiated on a
case-by-case basis.
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