Vermont Distribution Agreement regarding the continuous offering of the Trust's transferable shares of beneficial interest

• Category: Corporations - Public - Distribution
• State: Multi-State
• Control #: US-EG-9319
• Format: Word; Rich Text

Description

Distribution Agreement between Active Assets Premier Money Trust and Morgan Stanley Dean Witter Advisors, Inc. regarding the continuous offering of the Trust's transferable shares of beneficial interest (without par value) in order to promote the growth

A Vermont Distribution Agreement pertaining to the continuous offering of a Trust's transferable shares of beneficial interest is an important legal document that outlines the terms and conditions under which the shares are offered and distributed. This agreement is crucial for ensuring compliance with Vermont state regulations and protecting the interests of both the trust and its investors. The following provides a detailed description of what this agreement entails, along with relevant keywords frequently associated with it: 1. Purpose: The Vermont Distribution Agreement defines the purpose and objectives of the continuous offering of the Trust's transferable shares. These objectives may include raising capital, expanding the investor base, and providing liquidity for existing shareholders. 2. Trust Identification: The agreement identifies the specific trust for which the distribution agreement is being entered, including its name, legal structure, and any relevant registration details with the Vermont Securities Division. 3. Offerings and Sales: The agreement outlines the details of the offerings and sales of the trust's transferable shares. It provides information on the types of shares being offered (e.g., common shares, preferred shares), the offering price, any limitations on the number of shares that can be purchased, and any required minimum or maximum investment amounts. 4. Disclosure Requirements: To ensure transparency, the agreement includes provisions for required disclosures to potential investors. This may involve providing a prospectus, offering circular, or other documents containing essential information about the trust, such as its investment strategy, risks, fees, expenses, and financial statements. 5. Sales Methods and Procedures: The agreement specifies the methods and procedures for selling and distributing the trust's transferable shares. It may outline whether the shares will be sold directly by the trust or through authorized intermediaries, such as broker-dealers or investment advisers. It also covers any restrictions on reselling the shares in the secondary market. 6. Compensation and Fees: The agreement addresses the compensation and fees associated with the offering and distribution of the trust's shares. This may include sales commissions, underwriting fees, management fees, and any other expenses borne by the trust or the investors. 7. Termination and Amendment: The agreement includes provisions for termination and amendment, allowing for changes in the terms of the continuous offering or the agreement itself. It may outline the circumstances under which the agreement can be terminated and the process for seeking amendments or modifications. Different types of Vermont Distribution Agreements regarding the continuous offering of a Trust's transferable shares may include: 1. Private Placement Agreement: This type of agreement is used when the offering is limited to a specific group of investors, often institutions or accredited individuals, and is exempt from certain registration requirements under federal and state securities laws. 2. Registered Public Offering Agreement: In contrast to a private placement, this agreement applies to a public offering where the trust's transferable shares are offered to the public and require registration with the Securities and Exchange Commission (SEC) and the Vermont Securities Division. 3. Hybrid Offering Agreement: This agreement combines elements of both private placement and registered public offering, allowing for a broader range of investors while still benefiting from certain exemptions or reduced regulatory burdens. By understanding the details and nuances of the Vermont Distribution Agreement regarding the continuous offering of a Trust's transferable shares, trust managers and investors can ensure compliance with applicable regulations, protect their interests, and establish a framework for successful capital raising and investment activities.