Common use of Covenants of the Agent Clause in Contracts

Covenants of the Agent. 4.1 The Agent covenants and agrees with the Company that: (a) The Agent will promptly become registered as a broker-dealer and have an individual be registered as an agent, and maintain such registrations during the term of this Agreement, in the jurisdictions specified in the Procedures. (b) During the term of this Agreement, the Company will reimburse the Agent for the fees and expenses incurred by the Agent in effecting and maintaining the registrations referenced in subsection (a) above other than the State of New York. Notwithstanding anything in the preceding sentence to the contrary, in the event that Agent acts as an agent, broker or dealer for any other person in any such state other than New York in connection with any other offering, program or other activity unrelated to the Program and Agent’s activities under this Agreement which requires Agent to be registered as a broker or dealer in any such state or states and, as a result, is entitled to receive any form of compensation or other remuneration from any other person, the parties agree to negotiate and establish an equitable pro-ration of these costs and expenses.