Common use of SERVICE DEPOSIT Clause in Contracts

SERVICE DEPOSIT. The Funds will remit to GFS upon execution of this Agreement a service deposit of equal to one (1) month’s shareholder service fee. The service deposit computation will be based on either on the total number of shareholder accounts (open and closed) of each Fund to be serviced or the minimum fee, whichever is greater, as of the execution date of this Agreement. The Funds will have the option to have the service deposit applied to the last month’s service fee, or applied to any new contract between the Corporation and GFS. However, if the Corporation elects or is forced to terminate this Agreement for any reason what-so-ever other than a material breach by GFS (including, but not limited to, the voluntary or involuntary termination of the Funds, liquidation of the Funds’ assets, the sale or merger of the Funds or it’s assets to any successor entity) prior to the termination date of this Agreement as specified in Section 11 of this Agreement, the Funds will forfeit the Service Deposit paid to GFS upon execution of this Agreement.