S.I.S. Mercator Fund, Inc.
0000 Xxxxxx Xxxxx
Xxxxx 000
Xxxxx, Xxxxxxxxxxxx 00000
000-000-0000
East Coast Consultants, Inc.
0000 Xxxxxx Xxxxx
Xxxxx 000
Xxxxx. Pennsylvania 19087
East Coast Consultants, Inc., ("Distributor") has been appointed Distributor
of the capital stock of S.I.S. Mercator Fund, Inc. ("Fund"). During the term
of this compensation agreement, Distributor shall remain a memeber of the
National Association of Securities Dealers, Inc. ("NASD") and will act in
accordance with the following terms:
1. Distributor will abide by Rule 26 of the Rules of Fair Practice of the NASD
("Rules of Fair Practice"), and all other rules and regulations that are
now or may become applicable to transactions hereunder.
2. Orders for shars received from Distributor and accepted by the Fund will
be executed at the public offering price applicable to each order, as
described in the then effective prospectus and Statement of Additional
Information of the Fund. All orders are subject to acceptance by the Fund,
which reserves the right, in its sole discretion, to reject any order.
3. Distributor agrees to sell shares only in accordance with the terms of
the prospectus and Statement of Additional Information of the Fund that
are effective at the time of the sale.
4. The Fund will pay Distributor for each sale of Fund shares made by
Distributor hereunder that qualifies as "new gross sales" within the
meaning of Section 26(d)(2) of the Rules of Fair Practice, a maximum
fee of .25% (25 basis points) of the net asset value of such shares at
the time of sale, as determined by the Fund. The Fund shall also make to
Distributor, or to such person(s) as Distributor may require, such other
payments for the purposes set forth in Section 2. of the Fund's
Distribution Plan, which section is incorporated herein by reference,
provided thatthe total payments made by the Fund for such purposes
hereunder and otherwise shall not exceed the limit set forth in Section 2.(c)
of said Plan.
5. If any shares sold by Distributor under the terms of this agreement are
tendered to the Fund for redemption within seven business days after the
date of confirmation of the original purchase order therefor, after
notice thereof, Distributor shall promptly pay the Fund the full amount
paid to DIstributor pursuant to Section 4 herein in respect of such sale.
The Fund shall notify Distributor of any such redemption within ten days
after the date thereof. The Fund reserves the right, upon notice to
Distributor, to suspend sales or withdraw the offering of shares
entirely, to change the offering price as provided in the prospectus, or
to modify or cancel this agreement.
6. Each prospective investor shall be entitled to a copy of the current
prospectus and Statement of Additional Information without charge upon
request.
7. All communications to the Fund and/or Distributor shall be sent to 0000
Xxxxxx Xxxxx, Xxxxx 000, Xxxxx, Xxxxxxxxxxxx 00000. Any notice to a party
shall be duly given if mailed, delivered or telecopied to such party at
its address as set forth herein.
8. This agreement may be terminated at any time, without payment of any
penalty, by Distributor, or by vote of a majority of the members or the
Board of DIrectors of the Fund who are not interested persons of the Fund
and have no direct or indirect financial interest in the operation of the
Fund's Distribution Plan or in any agreement, including this agreement,
related to such Plan, or by vote of a majority of the outstanding
voting securities of the Fund, on not more than sixty days written
notice to Dealer. In addition, this agreement will terminate automatically
in the event of its assignment. For the purpose of this agreement, the
terms "interested persons" and "assignment" shall have the meanings ascribed
thereto, respectively, by Section 2(a)(19) and 2(s)(4) of the Investment
Company Act of 1940. Otherwise, this agreement shall be construed in
accordance with the laws of the Commonwealth of Pennsylvania.
9. Distributor understands that the Fund currently issues two series of
shares and that the Board of Directors of the Fund and the shareholders of
each such series have approved the Distribution Plan of the Fund in
respect of each such series and, further, that the Fund and/or the
shareholders of each Series may terminate this agreement as to either or
both series of shares.
Accepted:
East Coast Consultants, Inc.
Date:
By:
