Common use of Direct Expenses Clause in Contracts

Direct Expenses. Anything in this agreement to the contrary notwithstanding, the Fund shall pay, or reimburse SMC for the payment of, the following described expenses of the Fund (hereinafter called "direct expenses") whether or not billed to the Fund, SMC or any related entity: 1. Fees and expenses of its independent directors and the meetings thereof; 2. Fees and costs of investment advisory services; 3. Fees and costs of independent auditors and income tax preparation; 4. Fees and costs of outside legal counsel and any legal counsel directly employed by the Fund or its Board of Directors; 5. Custodian and banking services, fees and costs; 6. Costs of printing and mailing prospectuses to existing shareholders, proxy statements and other reports to shareholders, where such costs are incurred through the use of unaffiliated vendors or mail services. 7. Fees and costs for the registration of its securities with the Securities and Exchange Commission and the jurisdictions in which it qualifies its share for sale, including the fees and costs of registering and bonding brokers, dealers and salesmen as required; 8. Dues and expenses associated with membership in the Investment Company Institute; 9. Expenses of fidelity and liability insurance and bonding covering Fund; 10. Organizational costs.