Distribution and Servicing Fees Clause Samples
The 'Distribution and Servicing Fees' clause defines the fees payable for distributing and servicing financial products or investments. Typically, this clause outlines the percentage or amount of fees charged to investors or clients, details the frequency and method of payment, and specifies which parties are entitled to receive these fees. For example, it may state that a distributor receives a set annual fee for marketing a fund, while a servicer is compensated for handling account administration. The core function of this clause is to clearly allocate and disclose the costs associated with distribution and ongoing servicing, ensuring transparency and preventing disputes over compensation.
Distribution and Servicing Fees. Dealer shall also be entitled to receive from Distributor distribution fees and servicing fees at the annual rates listed in Exhibit C for the aggregate value of Shares per class held by Dealer Shareholders. These fees, if payable, will be calculated and paid monthly at an annualized rate of 0.25% of the net assets of the Fund, with payment occurring within 30 days after the end of each month. Notwithstanding the foregoing, Distributor shall have no obligation to pay any compensation described in the preceding sentence until Distributor receives the related compensation from the Fund in the form of an asset-based distribution fee and shareholder servicing fee (the “Related Compensation”), and Distributor’s obligation or liability to Dealer for such payments is limited solely to the Related Compensation and Dealer hereby waives any and all rights to receive payment of Related Compensation due until such time as Distributor is in receipt of such Related Compensation from the Fund. For purposes of this Agreement, a “Dealer Shareholder” shall include any person or entity introduced by Dealer to the Fund during the term of this Agreement, which invests in Shares. Distributor shall pay any compensation described in this Section 4(b) to Dealer in respect of the Shares held by Dealer Shareholders for as long as Dealer Shareholders hold those Shares through an account maintained by Dealer Shareholder at Dealer, subject to the limitations set forth in Section 4(e).
Distribution and Servicing Fees. Subject to and in accordance with the terms of the Prospectus and the Distribution and Servicing Plan (“Plan”), if any, adopted by resolution of the Fund’s board of trustees, which operates in a manner consistent with Rule 12b-1 under the 1940 Act, Distributor may pay certain financial institutions, including Dealer, such fees under the Plan as may be determined, for distribution, shareholder or administrative services, as described in the Plan and below:
a. Dealer shall furnish sales and marketing services and/or shareholder services to Dealer’s customers who invest in and own Shares, including, but not limited to, answering routine inquiries regarding the Fund, processing shareholder transactions, and providing any other shareholder services not otherwise provided by the Fund’s transfer agent. The Fund reserves the right, without prior notice, to suspend, adjust or eliminate the payment of such Plan and any payments or other Dealer compensation thereunder by amendment, sticker or supplement to the then-current Prospectus of the Fund or other written notice to Dealer. Distributor may cease payment of any fees under the Plan upon its termination or amendment and Dealer will have no recourse or claim to any fees in such situation.
b. With respect to payments to Dealer under the Plan, Distributor shall have only the obligation to make payments to Dealer after, for as long as, and to the extent that Distributor receives from the Fund an amount equivalent to the amount payable to Dealer. If applicable, Dealer hereby authorizes Distributor to pay Dealer’s designated clearing agent (“Clearing Agent”) such fees set forth under this section on Dealer’s behalf. In such case, Dealer acknowledges and agrees that after Distributor has made payment of such fees to Dealer’s Clearing Agent on Dealer’s behalf: (i) Dealer’s Clearing Agent is solely responsible and liable for direct payment of such fees to Dealer, and Distributor will not pay Dealer directly, (ii) Distributor cannot guarantee payment by Dealer’s Clearing Agent of such fees to Dealer, and (iii) should Dealer not receive payment of such fees from Dealer’s Clearing Agent for any reason, Dealer’s sole recourse is against Dealer’s Clearing Agent.
c. Any such fee payments shall reflect the amounts described in the Fund’s Prospectus and the Plan. Payments will be based on the average daily net assets of Shares which are owned by those customers of Dealer whose records, as maintained by the Fund or the transfer age...
Distribution and Servicing Fees. Dealer shall also be entitled to receive from Distributor distribution and servicing fees at the annual rate of 0.85% of the aggregate value of Shares held by Dealer Shareholders. These fees will be calculated monthly and paid quarterly based on the value of Shares at the end of each month in a calendar quarter, with payment occurring within 30 days after the end of each calendar quarter. It is expected that this distribution and servicing fee will be comprised of a 0.60% distribution fee and 0.25% servicing fee paid by the Fund to the Distributor. Notwithstanding the foregoing, Distributor shall have no obligation to pay any compensation described in the preceding sentence until Distributor receives the related compensation from the Fund in the form of an asset-based distribution and shareholder servicing fee (the “Related Compensation”), and Distributor’s obligation to Dealer for such payments is limited solely to the Related Compensation. For purposes of this Agreement, a “Dealer Shareholder” shall include any person or entity introduced by Dealer to the Fund during the term of this Agreement, which invests in the Fund. Distributor shall pay any compensation described in this Section 4(b) to Dealer in respect of Shares held by Dealer Shareholders for as long as Dealer Shareholders hold Shares through an account maintained by the Dealer Shareholder at the Dealer, subject to the limitations set forth in Section 4(e).
Distribution and Servicing Fees. Dealer shall also be entitled to receive from Distributor distribution fees and servicing fees at the annual rates listed in Exhibit C for the aggregate value of Shares per class held by Dealer Shareholders. These fees, if payable, will be calculated monthly and paid quarterly based on the value of class of Shares at the end of each month in a calendar quarter, with payment occurring within 30 days after the end of each calendar quarter. It is expected that this distribution fees and servicing fees will be comprised of the listed breakdown distribution fees and servicing fees paid by the Fund to the Distributor as listed in Exhibit C. Notwithstanding the foregoing, Distributor shall have no obligation to pay any compensation described in the preceding sentence until Distributor receives the related compensation from the Fund in the form of an asset-based distribution fees and shareholder servicing fees (the “Related Compensation”), and Distributor’s obligation to Dealer for such payments is limited solely to the Related Compensation. For purposes of this Agreement, a “Dealer Shareholder” shall include any person or entity introduced by Dealer to the Fund during the term of this Agreement, which invests in any class of the Fund. Distributor shall pay any compensation described in this Section 4(b) to Dealer in respect of the class of Shares held by Dealer Shareholders for as long as Dealer Shareholders hold those Shares through an account maintained by the Dealer Shareholder at the Dealer, subject to the limitations set forth in Section 4(e).
Distribution and Servicing Fees. Dealer shall also be entitled to receive from Distributor distribution and servicing fees at the annual rate of 0.85% of the aggregate value of Shares held by Dealer Shareholders. These fees will be calculated monthly and paid quarterly based on the value of Shares at the end of each month in a calendar quarter, with payment occurring within 30 days after the end of each calendar quarter. It is expected that this distribution and servicing fee will be comprised of a 0.60% distribution fee and 0.25% servicing fee paid by the Fund to the Distributor. Notwithstanding the foregoing, Distributor shall have no obligation to pay any compensation described in the preceding sentence until Distributor receives the related compensation from the Fund in the form of an asset-based distribution and shareholder servicing fee (the “Related Compensation”), and Distributor’s obligation to Dealer for such payments is limited solely to the Related Compensation. Distributor agrees to use its best efforts to collect from the Fund any Related Compensation owed to the Distributor, subject to the consent of the Board of Trustees of the Fund. For purposes of this Agreement, a “Dealer Shareholder” shall include any person or entity introduced by Dealer to the Fund during the term of this Agreement, which invests in the Fund. Distributor shall pay any compensation described in this Section 4(b) to Dealer in respect of Shares held by Dealer Shareholders for as long as Dealer Shareholders hold Shares through an account maintained by the Dealer Shareholder at the Dealer, subject to the limitations set forth in Section 4(e).
Distribution and Servicing Fees. Dealer shall also be entitled to receive from Distributor: (i) a distribution fee and (ii) a separate servicing fee, each at the annual rates listed in Exhibit C for the aggregate value of Shares per class held by Dealer Shareholders. These fees, if payable, will be calculated and paid monthly, with payment occurring within 30 days after the end of each month. Notwithstanding the foregoing, Distributor shall have no obligation to pay any compensation described in the preceding sentence until Distributor receives the related compensation from the Fund in the form of an asset-based distribution fee and shareholder servicing fee (the “Related Compensation”). Distributor’s obligation or liability to Dealer for such payments is limited solely to the Related Compensation, and Dealer hereby waives any and all rights to receive payment of Related Compensation due until such time as Distributor is in receipt of such Related Compensation from the Fund. For purposes of this Agreement, a “Dealer Shareholder” shall include any person or entity introduced by Dealer to the Fund during the term of this Agreement, which invests in Shares. The parties understand and agree that the receipt of a servicing fee by Dealer pursuant to this Agreement is solely for the shareholder services described above in Section 3(g) and is not conditioned upon or related to the performance of promotional, marketing or any other distribution activities performed by Dealer hereunder or otherwise. The Related Compensation is paid pursuant to Rule 12b-1 under the Investment Company Act of 1940 and may be reduced, suspended or eliminated at any time, including if the distribution plans under which the fees are paid are materially amended or terminated either by the Board of the Fund or by vote of a majority of the outstanding shares. Distributor reserves the right not to pay Related Compensation to Dealer if payments for a given month are deemed to be de minimis. Distributor currently adheres to a $25.00 de minimis threshold, but reserves the right to change that threshold from time to time.
Distribution and Servicing Fees. Dealer shall also be entitled to receive from the Placement Agent a shareholder servicing and/or distribution fee at the aggregate annual rate listed in Exhibit B for the aggregate value of Shares held by Dealer Shareholders. This fee, if payable, will be calculated and paid monthly, with payment occurring within 30 days after the end of each month. Notwithstanding the foregoing, no Placement Agent shall have any obligation to pay any compensation described in the preceding sentence until such Placement Agent receives the related compensation from the relevant Company in the form of an asset-based distribution fee and shareholder servicing fee (the “Related Compensation”), and no Placement Agent shall be liable for any amounts received or otherwise owing hereunder by the other Placement Agent. A Placement Agent’s obligation or liability to Dealer for such payments is limited solely to the Related Compensation, and Dealer hereby waives any and all rights to receive payment of Related Compensation due until such time as the relevant Placement Agent is in receipt of such Related Compensation from the relevant Company. For purposes of this Agreement, a “Dealer Shareholder” shall include any person or entity introduced by Dealer to a Company during the term of this Agreement, which invests in Shares of such Company. The Placement Agent shall pay any compensation described in this Section 4(b) to Dealer in respect of the Shares held by Dealer Shareholders for as long as Dealer Shareholders hold those Shares through an account maintained by Dealer Shareholder at Dealer, subject to the limitations set forth in Section 4(e) and the termination provisions of Section 12.
Distribution and Servicing Fees. The Company or its affiliates will pay to the Dealer Manager a Distribution and Servicing Fee in the amount of 0.75% per annum of the aggregate NAV for the Anchor II-B and Standard B Shares, in each case, payable monthly. In calculating the Distribution and Servicing Fee, the Company will use its NAV before giving effect to any accruals for the Distribution and Servicing Fee, repurchases, if any, for that month and distributions payable on the Shares.
Distribution and Servicing Fees. Dealer shall also be entitled to receive from Distributor distribution and servicing fees at the annual rate of 0.85% of the aggregate value of Shares held by Dealer Shareholders. These fees will be calculated monthly and paid quarterly based on the value of Shares at the end of each month in a calendar quarter, with payment occurring within 30 days after the end of each calendar quarter. It is expected that this distribution and servicing fee will be comprised of a 0.60% distribution fee and 0.25% servicing fee (“Servicing Fee”) paid by the Fund to the Distributor. Notwithstanding the foregoing, Distributor shall have no obligation to pay any compensation described in the preceding sentence until Distributor receives the related compensation from the Fund in the form of an asset-based distribution and shareholder servicing fee (the “Related Compensation”), and Distributor’s obligation to Dealer for such payments is limited solely to the Related Compensation. Distributor shall pay any compensation described in this Section 5(b) to Dealer in respect of Shares held by Dealer Shareholders for as long as Dealer Shareholders hold Shares through an account maintained by the Dealer Shareholder at the Dealer, subject to the limitations set forth in Section 5(e).
Distribution and Servicing Fees. Dealer shall also be entitled to receive from Distributor distribution and servicing fees at the annual rate of 0.75% (0.50% for the distribution fee and 0.25% for the servicing fee) of the aggregate value of Shares per class held by Dealer Shareholders. These fees, if payable, will be calculated monthly and paid quarterly based on the value of class of Shares at the end of each month in a calendar quarter, with payment occurring within 30 days after the end of each calendar quarter. Notwithstanding the foregoing, Distributor shall have no obligation to pay any compensation described in the preceding sentence until Distributor receives the related compensation from the Fund in the form of an asset-based distribution fees and shareholder servicing fees (the “Related Compensation”), and Distributor’s obligation to Dealer for such payments is limited solely to the Related Compensation. Distributor shall pay any compensation described in this Section 5(a) to Dealer in respect of the class of Shares held by Dealer Shareholders for as long as Dealer Shareholders hold those Shares through an account maintained by the Dealer Shareholder at the Dealer, subject to the limitations set forth in Section 5(c).” In all other respects Distributor and Dealer intend that the Servicing Agreement shall remain in full force and effect.