Texas 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 Texas Distribution Agreement is a legally binding contract between a distributor and a company operating a fund. It outlines the terms and conditions under which the distributor will continuously offer and sell shares of the fund to investors in Texas. The agreement serves as a framework for the distribution activities and helps establish a mutually beneficial relationship between the two parties. Key elements and clauses commonly found in a Texas Distribution Agreement include: 1. Parties: The agreement identifies the distributor and the company operating the fund as the parties involved in the agreement. It includes their legal names, addresses, and contact information. 2. Purpose: The purpose of the agreement is clearly stated, emphasizing the distributor's role in offering and selling the fund's shares to investors in Texas. 3. Territory: The agreement specifies that the distribution activities will be limited to the state of Texas, and potentially any other agreed-upon regions within the state. 4. Distribution Guidelines: This section outlines the distributor's responsibilities, including marketing and promotional efforts, maintaining necessary licenses and registrations, and adhering to all relevant laws and regulations. 5. Compensation: The agreement determines the compensation structure for the distributor, which may include commissions, fees, or other forms of remuneration, and outlines how and when it will be paid. 6. Duration: The agreement specifies the term of the distribution agreement, which can be either fixed or indefinite. It may include provisions for renewal or termination, along with notice requirements. 7. Reporting and Auditing: The distributor is typically required to provide regular reports to the fund's operating company, detailing sales, distribution expenses, and other relevant data. Auditing and compliance requirements may also be outlined. 8. Intellectual Property: Any use of the fund company's intellectual property, such as trademarks or logos, by the distributor must be clearly detailed and may require prior written consent. 9. Indemnification and Liability: The agreement defines the liability and indemnification obligations of both parties, protecting each from claims arising from their respective actions, negligence, or breaches of contract. 10. Governing Law and Jurisdiction: The agreement establishes that it is governed by the laws of the state of Texas, and any disputes will be resolved through arbitration or in a specified court. Different types of distribution agreements regarding the continuous offering of the Fund's shares in Texas may include: 1. Exclusive Distribution Agreement: This type of agreement grants exclusive rights to a single distributor, preventing the fund from engaging with other distributors in the state. 2. Non-Exclusive Distribution Agreement: Here, the fund company retains the right to engage multiple distributors in Texas simultaneously, allowing for a broader reach and potential market share. 3. Limited Distribution Agreement: This agreement restricts the number of shares or specific types of shares that can be distributed by the distributor, creating a controlled approach based on predetermined criteria. 4. General Distribution Agreement: This type of agreement allows the distributor to continuously offer and sell all shares of the fund to investors in Texas, without any specific limitations or restrictions. It's important to consult legal professionals and experts while drafting or entering into a Texas Distribution Agreement to ensure compliance with applicable laws and regulations.

A Texas Distribution Agreement is a legally binding contract between a distributor and a company operating a fund. It outlines the terms and conditions under which the distributor will continuously offer and sell shares of the fund to investors in Texas. The agreement serves as a framework for the distribution activities and helps establish a mutually beneficial relationship between the two parties. Key elements and clauses commonly found in a Texas Distribution Agreement include: 1. Parties: The agreement identifies the distributor and the company operating the fund as the parties involved in the agreement. It includes their legal names, addresses, and contact information. 2. Purpose: The purpose of the agreement is clearly stated, emphasizing the distributor's role in offering and selling the fund's shares to investors in Texas. 3. Territory: The agreement specifies that the distribution activities will be limited to the state of Texas, and potentially any other agreed-upon regions within the state. 4. Distribution Guidelines: This section outlines the distributor's responsibilities, including marketing and promotional efforts, maintaining necessary licenses and registrations, and adhering to all relevant laws and regulations. 5. Compensation: The agreement determines the compensation structure for the distributor, which may include commissions, fees, or other forms of remuneration, and outlines how and when it will be paid. 6. Duration: The agreement specifies the term of the distribution agreement, which can be either fixed or indefinite. It may include provisions for renewal or termination, along with notice requirements. 7. Reporting and Auditing: The distributor is typically required to provide regular reports to the fund's operating company, detailing sales, distribution expenses, and other relevant data. Auditing and compliance requirements may also be outlined. 8. Intellectual Property: Any use of the fund company's intellectual property, such as trademarks or logos, by the distributor must be clearly detailed and may require prior written consent. 9. Indemnification and Liability: The agreement defines the liability and indemnification obligations of both parties, protecting each from claims arising from their respective actions, negligence, or breaches of contract. 10. Governing Law and Jurisdiction: The agreement establishes that it is governed by the laws of the state of Texas, and any disputes will be resolved through arbitration or in a specified court. Different types of distribution agreements regarding the continuous offering of the Fund's shares in Texas may include: 1. Exclusive Distribution Agreement: This type of agreement grants exclusive rights to a single distributor, preventing the fund from engaging with other distributors in the state. 2. Non-Exclusive Distribution Agreement: Here, the fund company retains the right to engage multiple distributors in Texas simultaneously, allowing for a broader reach and potential market share. 3. Limited Distribution Agreement: This agreement restricts the number of shares or specific types of shares that can be distributed by the distributor, creating a controlled approach based on predetermined criteria. 4. General Distribution Agreement: This type of agreement allows the distributor to continuously offer and sell all shares of the fund to investors in Texas, without any specific limitations or restrictions. It's important to consult legal professionals and experts while drafting or entering into a Texas Distribution Agreement to ensure compliance with applicable laws and regulations.