California Distribution Agreement regarding the continuous offering of the Fund's shares

• Category: Corporations - Public - Distribution
• State: Multi-State
• Control #: US-EG-9373
• Format: Word; Rich Text

Description

Distribution Agreement between Prudential Tax-Managed Growth Fund and Prudential Investment Management Services, LLC regarding the continuous offering of the Fund's shares in order to promote the growth of the Fund and facilitate the distribution of the A California Distribution Agreement pertaining to the continuous offering of a Fund's shares is a legally binding contract between a Fund and a distributor, outlining the terms and conditions for the sale and distribution of the Fund's shares in the state of California. This agreement is crucial for investors, regulators, and the Fund itself, as it governs the continuous offering of shares to California residents and ensures compliance with securities laws and regulations. The agreement typically covers various aspects, including but not limited to the following: 1. Parties involved: The agreement specifies the names and contact details of the Fund and the distributor, clearly identifying their roles and responsibilities. 2. Distributor obligations: The agreement outlines the distributor's duties in promoting and selling the Fund's shares in California. This may include marketing efforts, distribution strategies, and compliance with state-specific regulations. 3. Authorization and approval: The agreement confirms that the distributor is duly authorized and approved to sell and distribute the Fund's shares in California, adhering to all relevant securities laws and regulations. 4. Sales representations and marketing materials: The agreement prescribes guidelines for the creation and usage of marketing materials, ensuring they accurately represent the Fund's features, risks, and potential returns. It may also specify the review and approval process for such materials. 5. Distribution support: The agreement often includes provisions for operational, technical, and administrative support that the distributor may require to effectively carry out the distribution of the Fund's shares. This can encompass customer service, record keeping, and reporting responsibilities. 6. Compensation and expenses: The agreement details the compensation structure for the distributor, specifying any upfront commissions, ongoing fees, or profit-sharing arrangements. It may also outline the reimbursement process for reasonable expenses incurred during the distribution process. 7. Compliance and reporting: The agreement establishes compliance obligations, requiring the distributor to adhere to state securities laws and regulations, including filing necessary reports, maintaining records, and cooperating with regulatory examinations. The California Distribution Agreement may differ based on the specific details and needs of the Fund and distributor. Some variations include: a. Exclusive Distribution Agreement: This type of agreement grants the distributor exclusive rights to sell the Fund's shares in California, barring the Fund from appointing or engaging with any other distributor within the state. b. Non-exclusive Distribution Agreement: Unlike the exclusive agreement, a non-exclusive arrangement allows the Fund to appoint multiple distributors to sell its shares in California concurrently. c. Limited Distribution Agreement: This type of agreement restricts the distribution of the Fund's shares to a specific subset of investors in California, such as institutional or accredited investors, rather than offering them to the public. d. Registered Investment Advisor (RIA) Distribution Agreement: If the Fund employs an RIA to distribute its shares, this agreement outlines the specific terms and responsibilities of the RIA, focusing on compliance with RIA regulations and requirements in addition to state securities laws. Overall, California Distribution Agreements regarding the continuous offering of a Fund's shares are tailored to suit the unique requirements of both the Fund and the distributor, ensuring a legally compliant and mutually beneficial relationship for the distribution of shares to California residents.

A California Distribution Agreement pertaining to the continuous offering of a Fund's shares is a legally binding contract between a Fund and a distributor, outlining the terms and conditions for the sale and distribution of the Fund's shares in the state of California. This agreement is crucial for investors, regulators, and the Fund itself, as it governs the continuous offering of shares to California residents and ensures compliance with securities laws and regulations. The agreement typically covers various aspects, including but not limited to the following: 1. Parties involved: The agreement specifies the names and contact details of the Fund and the distributor, clearly identifying their roles and responsibilities. 2. Distributor obligations: The agreement outlines the distributor's duties in promoting and selling the Fund's shares in California. This may include marketing efforts, distribution strategies, and compliance with state-specific regulations. 3. Authorization and approval: The agreement confirms that the distributor is duly authorized and approved to sell and distribute the Fund's shares in California, adhering to all relevant securities laws and regulations. 4. Sales representations and marketing materials: The agreement prescribes guidelines for the creation and usage of marketing materials, ensuring they accurately represent the Fund's features, risks, and potential returns. It may also specify the review and approval process for such materials. 5. Distribution support: The agreement often includes provisions for operational, technical, and administrative support that the distributor may require to effectively carry out the distribution of the Fund's shares. This can encompass customer service, record keeping, and reporting responsibilities. 6. Compensation and expenses: The agreement details the compensation structure for the distributor, specifying any upfront commissions, ongoing fees, or profit-sharing arrangements. It may also outline the reimbursement process for reasonable expenses incurred during the distribution process. 7. Compliance and reporting: The agreement establishes compliance obligations, requiring the distributor to adhere to state securities laws and regulations, including filing necessary reports, maintaining records, and cooperating with regulatory examinations. The California Distribution Agreement may differ based on the specific details and needs of the Fund and distributor. Some variations include: a. Exclusive Distribution Agreement: This type of agreement grants the distributor exclusive rights to sell the Fund's shares in California, barring the Fund from appointing or engaging with any other distributor within the state. b. Non-exclusive Distribution Agreement: Unlike the exclusive agreement, a non-exclusive arrangement allows the Fund to appoint multiple distributors to sell its shares in California concurrently. c. Limited Distribution Agreement: This type of agreement restricts the distribution of the Fund's shares to a specific subset of investors in California, such as institutional or accredited investors, rather than offering them to the public. d. Registered Investment Advisor (RIA) Distribution Agreement: If the Fund employs an RIA to distribute its shares, this agreement outlines the specific terms and responsibilities of the RIA, focusing on compliance with RIA regulations and requirements in addition to state securities laws. Overall, California Distribution Agreements regarding the continuous offering of a Fund's shares are tailored to suit the unique requirements of both the Fund and the distributor, ensuring a legally compliant and mutually beneficial relationship for the distribution of shares to California residents.