1
EXHIBIT (e).4
Mutual Fund Supplement to Dealer Sales Agreement
1. Compensation
Compensation is payable from two sources:
A. Dealer Concession. Compensation is payable as set forth in the
applicable current Prospectus, the terms of which are
incorporated herein by reference. (See such Prospectus for
minimum investment requirements and circumstances when
commissions are not payable.)
B. 12b-1 fees. In addition to any commissions payable pursuant to
the preceding paragraph, for certain Fortis Funds compensation is
payable as a percentage of the current average daily net asset
value of all such accounts brought to the Fund by such Dealer.
Payment of such "12b-1 fees" requires a current minimum monthly
average daily net asset value brought by the Dealer to one or
more of the Funds having 12b-1 plans. (See the appropriate
Prospectus for details of the amount payable.) Such compensation
will be paid monthly as long as this agreement and the 12b-1 plan
remain in effect and the amount of such business remaining on the
books exceeds such minimum. Upon termination of this Agreement or
the 12b-1 plan, such compensation will no longer be paid.
Notwithstanding anything contained herein or the Fortis Funds'
prospectuses to the contrary, the Dealer's right to 12b-1 fees
shall be limited or terminated to the extent that any Fortis Fund
ceases to accrue and/or pay 12b-1 fees by reasons of the
application of the limitations imposed on sales charges,
including asset-based sales charges, by the rules of the National
Association of Securities Dealers, Inc.
In return for the payments of these 12b-1 fees associated with
certain Fortis Funds, at least to the extent that any Fortis Fund
has adopted a service fee plan as a part of any 12b-1 plan, the
Dealer shall provide personal account maintenance services to the
shareholders of such Fortis Funds for those accounts which have
been assigned to the Dealer. Such services shall include, but not
be limited to, assisting the shareholder with elections and
changes in elections of shareholder services and options provided
by the Fortis Fund, changes in registration, assistance with
processing proxy solicitations, and generally answering the
shareholder's questions concerning the account and the Fortis
Fund in which it is invested.
2. Orders
A. Purchases. The Dealer agrees to place purchase orders with
Investors immediately for the same number of shares and at the
same price as any sales by the Dealer. All purchases shall be
paid for within the time period required by applicable laws
and/or regulations. Otherwise, Investors reserves the right,
without notice, to immediately cancel the sale and, at its
option, to sell the shares ordered by Investors back to the Fund
-- in which case, Investors may hold the Dealer responsible for
any resulting loss suffered by Investors or the Fund.
If any Fund shares sold to the Dealer under the terms of the
Agreement are repurchased by the Funds, or are tendered for
redemption to Investors or the Funds
2
within seven business days after confirmation of the original
purchase, the Dealer's right to any compensation received on such
shares will be forfeited. Investors will notify the Dealer of any
such repurchase or redemption within ten business days after
delivery of the certificate or written notice to Investors or the
Fund, and the Dealer shall thereafter promptly refund to
Investors the full compensation allowed on such sale (if it shall
already have been paid to Dealer). If such refund is not made
promptly, any such unrepaid compensation may be deducted from any
other sums owed by Investors or any affiliated companies, as
described in the Dealer Sales Agreement.
B. Redemptions. While Fund redemptions indicated by the Dealer may
be either oral or in writing, if properly executed share
certificates (or satisfactory written authorization in the case
of uncertificated shares) are not received by Investors within 10
days after its acceptance of the redemption order, Investors
reserves the right, without prior notice, to cancel such sale, in
which case it may hold the Dealer responsible for any resulting
loss.
3. Other
This Agreement shall be interpreted so as to be in compliance
with the requirements of Rule 12b-1 under the Investment Company
Act of 1940 insofar as it relates to the sale of shares of those
funds having 12b-1 plans.
