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Transfer Agent Agreement

Traditionally, when they bought a security, investors received a physical paper certificate. Today, transfer agents issue certificates in book form – an electronic method of collecting securities that saves a lot of time and money. These accounting documents vary according to the annexes. Transfer bodies shall also send shareholders annual reports, including the audited annual accounts of undertakings. And at the end of the year, transfer agents and tax filers jointly send federal tax information to investors, including information on dividends and interest paid, as well as data on security operations carried out during the year. Ordinary and preferred shareholders have the right to vote on important decisions of the company, such as merger activities and the sale of companies. These votes are facilitated by transfer agents who send proxy information to shareholders. These third-party companies specialize in providing transfer agent services and many companies believe that the costs of hiring a third party are cost-effective. Transfer agents take on a detailed and difficult task, especially for large companies with many shareholders. For example, it is not uncommon for a publicly traded company to issue millions of shares. Someone needs to keep in order all the relevant information for these millions of shares. All shareholders are entitled to accurate information about their investments.

While some companies choose to play the role of their own transfer agents, others choose to use third parties like trust companies, banks, or other similar financial institutions. These companies receive a fee for their services. Investment fund transfer agents differ from share transfer agents in that the former never issue physical certificates when the latter must do so at the request of shareholders. However, investment fund transfer agents perform many other important tasks, such as keeping records of shareholder accounts, tracking dividends and responding to shareholder requests on bank statements, income tax forms and transaction confirmations. The agent is authorized, without further action by the issuer or Netcapital, to designate as transfer agent and registrar any company or corporation that, by merger, consolidation or otherwise, may follow the activities of the transfer agent and the registrar (hereinafter referred to as „successor“); the successor shall have the same authority and appointment as set out in this Agreement, as if the issuer had appointed the successor as transfer agent and registrar. The successor, if appointed, is an agent of the issuer and not an agent of Worldwide Stock Transfer, LLC….