Compensation on Sales of Class a Shares and Class 529 a Shares Clause Samples
The 'Compensation on Sales of Class A Shares and Class 529-A Shares' clause defines how commissions or fees are paid to brokers or agents when these specific classes of shares are sold. Typically, this clause outlines the percentage or structure of compensation, such as upfront sales charges or ongoing service fees, that intermediaries receive for facilitating the purchase of Class A or Class 529-A shares. Its core practical function is to ensure transparency and clarity regarding the financial incentives involved in the sale of these investment products, helping both investors and sales agents understand the costs and compensation associated with such transactions.
Compensation on Sales of Class a Shares and Class 529 a Shares a. On sales of Class A shares and Class 529-A shares of Funds listed in Category 1 on the attached Schedule A that are accepted by us and for which you are responsible, you will be paid dealer concessions as follows: Less than $25,000 5.00% 5.75% $25,000 but less than $50,000 4.25% 5.00% $50,000 but less than $100,000 3.75% 4.50% $100,000 but less than $250,000 2.75% 3.50% $250,000 but less than $500,000 2.00% 2.50% $500,000 but less than $750,000 1.60% 2.00% $750,000 but less than $1,000,000 1.20% 1.50% $1,000,000 or more See below None
b. On sales of Class A shares and Class 529-A shares of Funds listed in Category 2 on the attached Schedule A that are accepted by us and for which you are responsible, you will be paid the same dealer concessions indicated above except as follows: Less than $100,000 3.00% 3.75%
c. If you initiate and are responsible for sales of Class A shares and Class 529-A shares, a) amounting to $1 million or more,
Compensation on Sales of Class a Shares and Class 529 a Shares