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Exhibit h(3)
TRANSFER AGENCY AND SERVICE AGREEMENT
BETWEEN
EACH OF THE PARTIES, INDIVIDUALLY AND NOT JOINTLY,
AS INDICATED ON THE SCHEDULES A-1 AND A-2
AND
BOSTON FINANCIAL DATA SERVICES, INC.
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TABLE OF CONTENTS
Page
1. Terms of Appointment and Duties......................... 1
2. Financial Intermediaries and Third Party
Administrators for Defined Contribution Plans......... 4
3. Fees and Expenses....................................... 5
4. Representations and Warranties of the Transfer Agent.... 6
5. Representations and Warranties of the Fund.............. 6
6. Wire Transfer Operating Guidelines...................... 7
7. Data Access and Proprietary Information................. 8
8. Indemnification......................................... 10
9. Standard of Care........................................ 11
10. Year 2000............................................... 11
11. Confidentiality......................................... 11
12. Covenants of the Fund and the Transfer Agent............ 12
13. Termination of Agreement................................ 12
14. Assignment and Third Party Beneficiaries................ 13
15. Subcontractors.......................................... 14
16. Miscellaneous........................................... 14
17. Additional Funds........................................ 16
18. Limitations of Liability of Trustees and Shareholders... 17
19. Each Fund a Separate Party to Agreement................. 17
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TRANSFER AGENCY AND SERVICE AGREEMENT
AGREEMENT made as of the ____ day of _______________, 2001, by and between EACH
OF THE PARTIES, INDIVIDUALLY AND NOT JOINTLY, AS INDICATED ON THE SCHEDULES A-1
AND A-2, having its principal office and place of business at 000 Xxxxxxxxx
Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000 (the "Fund"), and BOSTON FINANCIAL DATA
SERVICES, INC., a Massachusetts corporation having its principal office and
place of business at 0000 Xxxxxxx Xxxxxx, Xxxxx 000X, Xxxxxx, Xxxxxxxxxxxxx
00000 (the "Transfer Agent").
WHEREAS, one or more of the Funds are authorized to issue shares in separate
series, with each such series representing interests in a separate portfolio of
securities and other assets:
WHEREAS, the attached Schedules A-1 and A-2 may be amended by the parties from
time to time (each such series, together with all other series subsequently
established by the Fund and made subject to this Agreement in accordance with
Section 17, being herein referred to as a "Portfolio", and collectively as the
"Portfolios");
WHEREAS, the Fund, on behalf of the Portfolios, desires to appoint the Transfer
Agent as its transfer agent, dividend disbursing agent, custodian of certain
retirement plans and agent in connection with certain other activities, and the
Transfer Agent desires to accept such appointment.
NOW THEREFORE, in consideration of the mutual covenants herein contained, the
parties hereto agree as follows:
1. Terms of Appointment and Duties
1.1 Transfer Agency Services. Subject to the terms and conditions set forth
in this Agreement, the Fund on behalf of the Portfolios, as applicable,
hereby employs and appoints the Transfer Agent to act as, and the Transfer
Agent agrees to act as its transfer agent for the Fund's authorized and
issued shares of its common stock or beneficial interest, as the case may
be, ("Shares"), dividend disbursing agent, custodian of certain retirement
plans and agent in connection with any accumulation, open-account or
similar plan provided to the shareholders of each of the respective
Portfolios of the Fund ("Shareholders") and set out in the currently
effective prospectus and statement of additional information ("prospectus")
of the Fund on behalf of the applicable Portfolio, including without
limitation any periodic investment plan or periodic withdrawal program. In
accordance with procedures established from time to time by agreement
between the Fund on behalf of each of the Portfolios, as applicable, and
the Transfer Agent, the Transfer Agent agrees that it will perform the
following services:
(a) Receive for acceptance, orders for the purchase of Shares, and
promptly deliver payment and appropriate documentation thereof to the
Custodian of the Fund authorized pursuant to the Articles of Incorporation
or Declaration of Trust, as appropriate, of the Fund (the "Custodian");
(b) Pursuant to purchase orders, issue the appropriate number of Shares
and hold such Shares in the appropriate Shareholder account;
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(c) Receive for acceptance redemption requests and redemption directions
and deliver the appropriate documentation thereof to the Custodian;
(d) In respect to the transactions in items (a), (b) and (c) above, the
Transfer Agent shall execute transactions directly with broker-dealers
authorized by the Fund;
(e) At the appropriate time as and when it receives monies paid to it by
the Custodian with respect to any redemption, pay over or cause to be paid
over in the appropriate manner such monies as instructed by the redeeming
Shareholders;
(f) Effect transfers of Shares by the registered owners thereof upon
receipt of appropriate instructions;
(g) Prepare and transmit payments for dividends and distributions
declared by the Fund on behalf of the applicable Portfolio;
(h) Issue replacement certificates for those certificates alleged to have
been lost, stolen or destroyed upon receipt by the Transfer Agent of
indemnification satisfactory to the Transfer Agent and protecting the
Transfer Agent and the Fund, and the Transfer Agent at its option, may
issue replacement certificates in place of mutilated stock certificates
upon presentation thereof and without such indemnity;
(i) Maintain records of account for and advise the Fund and its
Shareholders as to the foregoing; and
(j) Record the issuance of Shares of the Fund and maintain pursuant to
SEC Rule 17Ad-10(e) a record of the total number of Shares of the Fund
which are authorized, based upon data provided to it by the Fund, and
issued and outstanding. The Transfer Agent shall also provide the Fund on
a regular basis with the total number of Shares which are authorized and
issued and outstanding and shall have no obligation, when recording the
issuance of Shares, to monitor the issuance of such Shares or to take
cognizance of any laws relating to the issue or sale of such Shares, which
functions shall be the sole responsibility of the Fund.
1.2 Additional Services. In addition to, and neither in lieu nor in
contravention of, the services set forth in the above paragraph, the
Transfer Agent shall perform the following services:
(a) Other Customary Services. Perform the customary services of a
transfer agent, dividend disbursing agent, record-keeper for certain
retirement plans where State Street Bank and Trust Company (the "Bank") is
custodian and, as relevant, agent in connection with accumulation,
open-account or similar plan (including without limitation any periodic
investment plan or periodic withdrawal program), including but not limited
to: maintaining all Shareholder accounts, Shareholder reports and
prospectuses to current Shareholders, withholding taxes on U.S. resident
and non-resident alien accounts, preparing and filing U.S. Treasury
Department Forms 1099 and other appropriate forms required with respect to
dividends and distributions by federal authorities for all Shareholders,
preparing and mailing confirmation forms and statements of account to
Shareholders for all purchases
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and redemptions of Shares and other confirmable transactions in Shareholder
accounts, preparing and mailing activity statements for Shareholders, and
providing Shareholder account information;
(b) Control Book (also known as "Super Sheet"). Maintain a daily record and
produce a daily report for the Fund of all transactions and receipts and
disbursements of money and securities and deliver a copy of such report for the
Fund for each business day to the Fund no later than 9:00 AM Eastern Time, or
such earlier time as the Fund may reasonably require, on the next business day;
(c) "Blue Sky" Reporting. The Fund shall (i) identify to the Transfer Agent in
writing those transactions and assets to be treated as exempt from blue sky
reporting for each State; and (ii) verify the establishment of transactions for
each State on the system prior to activation and thereafter monitor the daily
activity for each State. The responsibility of the Transfer Agent for the
Fund's blue sky State registration status is solely limited to the initial
establishment of transactions subject to blue sky compliance by the Fund and
providing a system which will enable the Fund or its agent to monitor the total
number of Shares sold in each State;
(d) National Securities Clearing Corporation (the "NSCC"). (i) accept and
effectuate the registration and maintenance of accounts through Networking and
the purchase, redemption, transfer and exchange of shares in such accounts
through Fund/SERV (Networking and Fund/SERV being programs operated by the NSCC
on behalf of NSCC's participants, including the Fund's distributor), in
accordance with instructions transmitted to and received by the Transfer Agent
by transmission from NSCC on behalf of other NSCC participants which have been
established by, or in accordance with, the instructions of authorized persons,
as hereinafter defined, on the dealer file maintained by the Transfer Agent;
(ii) issue instructions to Fund's banks for the settlement of transactions
between the Fund and NSCC (acting on behalf of its participants); (iii) provide
account and transaction information from the affected Fund's records on DST
Systems, Inc. computer system TA2000 ("TA2000 System") in accordance with
NSCC's Networking and Fund/SERV rules for those participants; and (iv) maintain
Shareholder accounts on TA2000 System through Networking;
(e) New Procedures. New procedures as to who shall provide certain of these
services in Section 1 may be established in writing from time to time by
agreement between the Fund and the Transfer Agent. The Transfer Agent may at
times perform only a portion of these services and the Fund or its agent may
perform these services on the Fund's behalf; and
(f) Overflow Telephone Support. If the parties elect to have the Transfer Agent
provide overflow telephone support to any of the Funds under this Agreement,
the parties will agree in writing to the manner and timing of such services and
any fees and out-of-pocket expenses related thereto;
(g) Compliance with Office of Foreign Asset Control ("OFAC") Regulation. Ensure
compliance with OFAC laws, regulations, guidance documents, and blocking and
notification requirements by adopting adequate compliance policies, procedures
and internal controls;
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(h) Comply with applicable money laundering and currency transaction
reporting laws, regulations, and government guidance, including suspicious
activity reporting and record-keeping requirements and with "money
laundering" guidelines as may be agreed upon by the parties; and
(i) Monitor proposed securities and tax laws and regulations which may
affect the Transfer Agent's products and/or services provided hereunder and
take reasonable steps to update its products and/or services to accommodate
new securities and tax laws and regulations applicable to the Transfer
Agent in the time and manner as required by such laws and regulations.
2. Financial Intermediaries and Third Party Administrators for Defined
Contribution Plans
2.1 The Fund may decide to make available to certain of its customers, a
qualified plan program (the "Program") pursuant to which the customers
("Employers") may adopt certain plans of deferred compensation ("Plan" or
"Plans") for the benefit of the individual Plan participant (the "Plan
Participant"), such Plan(s) being qualified under Section 401(a) of the
Internal Revenue Code of 1986, as amended ("Code") and administered by
third party administrators which may be plan administrators as defined in
the Employee Retirement Income Security Act of 1974, as amended (the
"TPA(s)").
2.2 In accordance with procedures established between the parties, as may be
amended by the parties from time to time, the Transfer Agent shall:
(a) Treat Shareholder accounts established by the Plans in the name of the
trustees, Plans or TPA's as the case may be as omnibus accounts;
(b) Maintain omnibus accounts on its records in the name of the TPA or its
designee as the trustee for the benefit of the Plan; and
(c) Perform all services under Section 1 as transfer agent of the Fund and
not as a record-keeper or trustee for the Plans.
2.3 Transactions identified under Section 2 of this Agreement shall be deemed
exception services ("Exception Services") when such transactions:
(a) Require the Transfer Agent to use methods and procedures other than
those usually employed by the Transfer Agent to perform services under
Section 1 of this Agreement;
(b) Involve the provision of information to the Transfer Agent after the
commencement of the nightly processing cycle of the TA2000 System; or
(c) Require more manual intervention by the Transfer Agent, either in the
entry of data or in the modification or amendment of reports generated by
the TA2000 System than is usually required by non-retirement plan and
pre-nightly transactions.
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3. Fees and Expenses
3.1 Fee Schedule. For the performance by the Transfer Agent pursuant to this
Agreement, the Fund agrees to pay the Transfer Agent an annual maintenance
fee for each Shareholder account as set forth in the attached fee schedule
("Schedule 3.1"). Such fees and out-of-pocket expenses and advances
identified under Section 3.2 below may be changed from time to time subject
to mutual written agreement between the Fund and the Transfer Agent.
3.2 Out-of-Pocket Expenses. In addition to the fee paid under Section 3.1
above, the Fund agrees to reimburse the Transfer Agent for out-of-pocket
expenses, including but not limited to confirmation production, postage,
forms, telephone, microfilm, microfiche, records storage, or advances
incurred by the Transfer Agent for the items set out in Schedule 3.1
attached hereto. In addition, any other expenses incurred by the Transfer
Agent at the request or with the consent of the Fund, will be reimbursed by
the Fund.
3.3 Postage. Postage for mailing of dividends. Fund reports and other mailings
to all shareholder accounts shall be advanced to the Transfer Agent by the
Fund at least seven (7) days prior to the mailing date of such materials.
3.4 Invoices. The Fund Agrees to pay all fees and reimbursable expenses within
thirty (30) days following the receipt of the respective billing notice,
except for any fees or expenses which are subject to good faith dispute. In
the event of such a dispute, the Fund may only withhold that portion of the
fee or expense subject to the good faith dispute. The Fund shall notify the
Transfer Agent in writing within twenty-one (21) calendar days following
the receipt of each billing notice if the Fund is disputing any amounts in
good faith. If the Fund does not provide such notice of dispute within the
required time, the billing notice will be deemed accepted by the Fund. The
Fund shall settle such disputed amounts within five (5) days of the day on
which the parties agree on the amount to be paid by payment of the agreed
amount. If no agreement is reached, then such disputed amounts shall be
settled as may be required by law or legal process.
3.5 Late Payments. If any undisputed amount in an invoice of the Transfer
Agent (for fees or reimbursable expenses) is not paid within sixty (60)
days following the receipt of the respective billing notice, the Fund shall
pay the Transfer Agent interest thereon (from the due date to the date of
payment) at a per annum rate equal to one percent (1.0%) plus the Prime
Rate (that is, the base rate on corporate loans posted by large domestic
banks) published by The Wall Street Journal (or, in the event such rate is
not so published, a reasonably equivalent published rate selected by the
Fund) on the first day of publication during the month when such amount was
due. Notwithstanding any other provision hereof, such interest rate shall
be no greater than permitted under applicable provisions of Massachusetts
law.
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4. Representations and Warranties of the Transfer Agent
The Transfer Agent represents and warrants to the Fund that:
4.1 It is a corporation duly organized and existing and in good standing
under the laws of The Commonwealth of Massachusetts.
4.2 It is duly qualified to carry on its business in The Commonwealth of
Massachusetts.
4.3 It is empowered under applicable laws and by its Articles of
Organization and By-Laws to enter into and perform this Agreement.
4.4 It is a transfer agent fully registered as a transfer agent pursuant
to Section 17A(c)(2) of the Securities Exchange Act of 1934, as
amended (the "Exchange Act").
4.5 All requisite corporate proceedings have been taken to authorize it to
enter into and perform this Agreement.
4.6 It has and will continue to have access to the necessary facilities,
equipment and personnel to perform its duties and obligations under
this Agreement.
5. Representations and Warranties of the Fund
The Fund represents and warrants to the Transfer Agent that:
5.1 It is a corporation or business trust duly organized and existing and
in good standing under the laws of its state of organization or
incorporation.
5.2 It is empowered under applicable laws and by its Articles of
Incorporation or Declaration of Trust, as the case may be, and By-Laws
to enter into and perform this Agreement.
5.3 All corporate proceedings required by said Articles of Incorporation
or Declaration of Trust, as the case may be, and By-Laws have been
taken to authorize it to enter into and perform this Agreement.
5.4 It is an open-end management investment company registered under the
Investment Company Act of 1940, as amended.
5.5 A registration statement under the Securities Act of 1933, as amended
is currently effective and will remain effective, and appropriate
state securities law filings have been made and will continue to be
made, with respect to all Shares of the Fund being offered for sale.
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6. Wire Transfer Operating Guidelines/Articles 4A of the Uniform Commercial
Code
6.1 Obligation of Sender. The Transfer Agent is authorized to promptly debit
the appropriate Fund Account(s) upon the receipt of a payment order in
compliance with the selected security procedure (the "Security Procedure")
chosen for funds transfer and in the amount of money that the Transfer
Agent has been instructed to transfer. The Transfer Agent shall execute
payment orders in compliance with the Security Procedure and with the Fund
instructions on the execution date provided that such payment order is
received by the customary deadline for processing such a request, unless
the payment order specifies a later time. All payment orders and
communications received after this the customary deadline will be deemed to
have been received the next business day.
6.2 Security Procedure. The Fund acknowledges that the Security Procedure it
has designated on the Fund Selection Form was selected by the Fund from
security procedures offered by the Transfer Agent. The Fund shall restrict
access to confidential information relating to the Security Procedure to
authorized persons as communicated to the Transfer Agent in writing. The
Fund must notify the Transfer Agent immediately if it has reason to believe
unauthorized persons may have obtained access to such information or of any
change in the Fund's authorized personnel. The Transfer Agent shall verify
the authenticity of all Fund instructions according to the Security
Procedure.
6.3 Account Numbers. The Transfer Agent shall process all payment orders on
the basis of the account number contained in the payment order. In the
event of a discrepancy between any name indicated on the payment order and
the account number, the account number shall take precedence and govern.
6.4 Rejection. The Transfer Agent reserves the right to decline to process or
delay the processing of a payment order which (a) is in excess of the
collected balance in the account to be charged at the time of the Transfer
Agent's receipt of such payment order; (b) if initiating such payment order
would cause the Transfer Agent, in the Transfer Agent's reasonable
judgement, to exceed any volume, aggregate dollar, network, time, credit or
similar limits which are applicable to the Transfer Agent; or (c) if the
Transfer Agent, in good faith, is unable to satisfy itself that the
transaction has been properly authorized.
6.5 Cancellation Amendment. The Transfer Agent shall use reasonable efforts to
act on all authorized requests to cancel or amend payment orders received
in compliance with the Security Procedure provided that such requests are
received in a timely manner affording the Transfer Agent reasonable
opportunity to act. However, the Transfer Agent assumes no liability if the
request for amendment or cancellation cannot be satisfied.
6.6 Errors. The Transfer Agent shall assume no responsibility for failure to
detect any erroneous payment order provided that the Transfer Agent
complies with the payment order instructions as received and the Transfer
Agent complies with the Security Procedure. The Security Procedure is
established for the purpose of authenticating payment orders only and not
for the detection of errors in payment orders.
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6.7 Interest. The Transfer Agent shall assume no responsibility for lost
interest with respect to the refundable amount of any unauthorized
payment order, unless the Transfer Agent is notified of the
unauthorized payment order within thirty (30) days of notification by
the Transfer Agent of the acceptance of such payment order.
6.8 ACH Credit Entries/Provisional Payments. When the Fund initiates or
receives Automated Clearing House credit and debit entries pursuant to
these guidelines and the rules of the National Automated Clearing
House Association and the New England Clearing House Association, the
Transfer Agent will act as an Originating Depository Financial
Institution and/or Receiving Depository Financial Institution, as the
case may be, with respect to such entries. Credits given by the
Transfer Agent with respect to an ACH credit entry are provisional
until the Transfer Agent receives final settlement for such entry from
the Federal Reserve Bank. If the Transfer Agent does not receive such
final settlement, the Fund agrees that the Transfer Agent shall
receive a refund of the amount credited to the Fund in connection with
such entry, and the party making payment to the Fund via such entry
shall not be deemed to have paid the amount of the entry.
6.9 Confirmation. Confirmation of Transfer Agent's execution of payment
orders shall ordinarily be provided within twenty four (24) hours
notice of which may be delivered through the Transfer Agent's
proprietary information systems, or by facsimile or call-back. Fund
must report any objections to the execution of an order within thirty
(30) days.
7. Data Access and Proprietary Information
7.1 The Fund acknowledges that the databases, computer programs, screen
formats, report formats, interactive design techniques, and
documentation manuals furnished to the Fund by the Transfer Agent as
part of the Fund's ability to access certain Fund-related data
("Customer Data") maintained by the Transfer Agent on databases under
the control and ownership of the Transfer Agent or other third party
("Data Access Services") constitute copyrighted, trade secret, or
other proprietary information (collectively, "Proprietary
Information") of substantial value to the Transfer Agent or other
third party. In no event shall Proprietary Information be deemed
Customer Data. The Fund agrees to treat all Proprietary Information as
proprietary to the Transfer Agent and further agrees that it shall not
divulge any Proprietary Information to any person or organization
except as may be provided hereunder. Without limiting the foregoing,
the Fund agrees for itself and its employees and agents to:
(a) Use such programs and databases (i) solely on the Fund's
computers, or (ii) solely from equipment at the location agreed to
between the Fund and the Transfer Agent and (iii) solely in accordance
with the Transfer Agent's applicable user documentation;
(b) Refrain from copying or duplicating in any way (other than in the
normal course of performing processing on the Fund's computer(s)), the
Proprietary Information;
(c) Refrain from obtaining unauthorized access to any portion of the
Proprietary Information, and if such access is inadvertently obtained,
to inform in a timely manner of such fact and dispose of such
information in accordance with the Transfer Agent's instructions;
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(d) Refrain from causing or allowing information transmitted from the
Transfer Agent's computer to the Fund's terminal to be retransmitted to
any other computer terminal or other device except as expressly permitted
by the Transfer Agent (such permission not to be unreasonably withheld);
(e) Allow the Fund to have access only to those authorized transactions as
agreed to between the Fund and the Transfer Agent; and
(f) Honor all reasonable written requests made by the Transfer Agent to
protect at the Transfer Agent's expense the rights of the Transfer Agent
in Proprietary Information at common law, under federal copyright law and
under other federal or state law.
7.2 Proprietary Information shall not include all or any portion of any of the
foregoing items that: (i) are or become publicly available without breach
of this Agreement; (ii) are released for general disclosure by a written
release by the Transfer Agent; or (iii) are already in the possession of
the receiving party at the time of receipt without obligation of
confidentiality or breach of this Agreement.
7.3 The Fund acknowledges that its obligation to protect the Transfer Agent's
Proprietary Information is essential to the business interest of the
Transfer Agent and that the disclosure of such Proprietary Information in
breach of this Agreement would cause the Transfer Agent immediate,
substantial and irreparable harm, the value of which would be extremely
difficult to determine. Accordingly, the parties agree that, in addition
to any other remedies that may be available in law, equity, or otherwise
for the disclosure or use of the Proprietary Information in breach of this
Agreement, the Transfer Agent shall be entitled to seek and obtain a
temporary restraining order, injunctive relief, or other equitable relief
against the continuance of such breach.
7.4 If the Fund notifies the Transfer Agent that any of the Data Access
Services do not operate in material compliance with the most recently
issued user documentation for such services, the Transfer Agent shall
endeavor in a timely manner to correct such failure. Organizations from
which the Transfer Agent may obtain certain data included in the Data
Access Services are solely responsible for the contents of such data and
the Fund agrees to make no claim against the Transfer Agent arising out of
the contents of such third-party data, including, but not limited to, the
accuracy thereof. DATA ACCESS SERVICES AND ALL COMPUTER PROGRAMS AND
SOFTWARE SPECIFICATIONS USED IN CONNECTION THEREWITH ARE PROVIDED ON AN AS
IS, AS AVAILABLE BASIS. THE TRANSFER AGENT EXPRESSLY DISCLAIMS ALL
WARRANTIES EXCEPT THOSE EXPRESSLY STATED HEREIN INCLUDING, BUT NOT LIMITED
TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE.
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7.5 If the transactions available to the Fund include the ability to originate
electronic instructions to the Transfer Agent in order to: (i) effect the
transfer or movement of cash or Shares; or (ii) transmit Shareholder
information or other information, then in such event the Transfer Agent
shall be entitled to rely on the validity and authenticity of such
instruction without undertaking any further inquiry as long as such
instruction is undertaken in conformity with security procedures
established by the Transfer Agent from time to time.
7.6 Each party shall take reasonable efforts to advise its employees of their
obligations pursuant to this Section 7. The obligations of this Section
shall survive any earlier termination of this Agreement.
8. Indemnification
8.1 The Transfer Agent shall not be responsible for, and the relevant Fund
shall indemnify and hold the Transfer Agent harmless from and against, any
and all losses, damages, costs, charges, counsel fees, payments, expenses
and liability (collectively referred to as "Losses") arising out of or
attributable to:
(a) All actions of the Transfer Agent or its agents or subcontractors
required to be taken pursuant to this Agreement (including the defense of
any lawsuit in which the Transfer Agent or affiliate is a named party),
provided that such actions are taken in good faith and without negligence
or willful misconduct;
(b) The Fund's lack of good faith, negligence or willful misconduct;
(c) The reasonable reliance upon, and any subsequent use of or action taken
or omitted, by the Transfer Agent, or its agents or subcontractors on: (i)
any information, records, documents, data, stock certificates or services,
which are received by the Transfer Agent or its agents or subcontractors by
machine readable input, facsimile, CRT data entry, electronic instructions
or other similar means authorized by the Fund, and which have been
prepared, maintained or performed by the Fund or any other person or firm
on behalf of the Fund including but not limited to any broker-dealer, TPA
or previous transfer agent; (ii) any instructions or requests of the Fund
or any of its officers; (iii) any instructions or opinions of legal counsel
with respect to any matter arising in connection with the services to be
performed by the Transfer Agent under this Agreement which are provided to
the Transfer Agent after consultation with such legal counsel; or (iv) any
paper or document, reasonably believed to be genuine, authentic, or signed
by the proper person or persons; unless such Losses are due to the
negligence of the Transfer Agent arising out of its failure to perform in
accordance with procedures established with the Fund;
(d) The offer or sale of Shares in violation of federal or state securities
laws or regulations requiring that such Shares be registered or in
violation of any stop order or other determination or ruling by any federal
or any state agency with respect to the offer or sale of such Shares;
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(e) The negotiation and processing of any checks including without
limitation for deposit into the Fund's demand deposit account maintained at
the Bank, unless such Losses are due to the negligence of the Transfer
Agent arising out of its failure to perform in accordance with procedures
established with the Fund; or
(f) Upon the Fund's request entering into any agreements required by the
NSCC for the transmission of Fund or Shareholder data through the NSCC
clearing systems.
8.2 The Fund shall not be responsible for, and the Transfer Agent shall
indemnify and hold the Fund harmless from and against, any and all losses,
costs, charges, counsel fees, payments, expenses and liability to the
extent arising out of or attributable to any actions or failure of the
Transfer Agent to act as a result of the Transfer Agent's lack of good
faith, negligence or willful misconduct.
9. Standard of Care
The Transfer Agent shall at all times act in good faith and agrees to use
its best efforts within reasonable limits to ensure the accuracy of all
services performed under this Agreement, but assumes no responsibility and
shall not be liable for loss or damage due to errors, including encoding
and payment processing errors, unless said errors are caused by its
negligence, bad faith, or willful misconduct or that of its employees or
agents. The parties agree that any encoding or payment processing errors
shall be governed by this standard of care and Section 4-209 of the Uniform
Commercial Code is superseded by Section 9 of this Agreement. This standard
of care also shall apply to Exception Services, as defined in Section 2.3
herein, but such application shall take into consideration the manual
processing involved in, and time sensitive nature of, Exception Services.
10. Confidentiality
10.1 The Transfer Agent and the Fund agree that they will not, at any time
during the term of this Agreement or after its termination, reveal,
divulge, or make known to any person, firm, corporation or other business
organization, any customers' lists, trade secrets, cost figures and
projections, profit figures and projections, Fund Shareholder information,
or any other secret or confidential information whatsoever, whether of the
Transfer Agent or of the Fund, used or gained by the Transfer Agent or the
Fund during performance under this Agreement. The Fund and the Transfer
Agent further covenant and agree to retain all such knowledge and
information acquired during and after the term of this of Agreement
respecting such lists, trade secrets, or any secret or confidential
information whatsoever in trust for the sole benefit of the Transfer Agent
or the Fund and their successors and assigns. In the event of breach of the
foregoing by either party, the remedies provided by Section 7.3 shall be
available to the party whose confidential information is disclosed. The
above prohibition of disclosure shall not apply to the extent that the
Transfer Agent must disclose such data to its sub-contractor or Fund agent
for purposes of providing services under this Agreement. The Transfer Agent
shall use its best efforts to require such sub-contractors to agree that
the Fund information be kept in strict confidence and used solely for
purposes of performing its requisite services.
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10.2 In the event that any requests or demands are made for the inspection
of the Shareholder records of the Fund, other than requests for
records of Shareholders pursuant to standard subpoenas from state or
federal government authorities (i.e., divorce and criminal actions),
the Transfer Agent will endeavor to notify the Fund and to secure
instructions from an authorized officer of the Fund as to such
inspection. The Transfer Agent expressly reserves the right, however,
to exhibit the Shareholder records to any person whenever it is
advised by counsel that it may be held liable for the failure to
exhibit the Shareholder records to such person or if required by law
or court order.
11. Covenants of the Fund and the Transfer Agent
11.1 The Fund shall promptly furnish to the Transfer Agent the following:
(a) A certified copy of the resolution of the Board of Directors or
Trustees, as the case may be, of the Fund authorizing the appointment
of the Transfer Agent and the execution and delivery of this
Agreement; and
(b) A copy of the Articles of Incorporation and By-Laws of the Fund
and all amendments thereto.
11.2 The Transfer Agent hereby agrees to establish and maintain facilities
and procedures reasonably acceptable to the Fund for safekeeping of
stock certificates, check forms and facsimile signature imprinting
devices, if any; and for the preparation or use, and for keeping
account of, such certificates, forms and devices.
11.3 The Transfer Agent shall keep records relating to the services to be
performed hereunder, in the form and manner as it may deem advisable.
To the extent required by Section 31 of the Investment Company Act of
1940, as amended, and the Rules thereunder, the Transfer Agent agrees
that all such records prepared or maintained by the Transfer Agent
relating to the services to be performed by the Transfer Agent
hereunder are the property of the relevant Fund and will be preserved,
maintained and made available in accordance with such Section and
Rules, and will be surrendered promptly to the Fund on and in
accordance with its request.
11.4 The Transfer Agent will provide for back-up of its computer files and
data with respect to the Fund. The Transfer Agent will maintain a
comprehensive Disaster Recovery Plan and will provide the Fund with a
summary of its Disaster Recovery Plan upon the reasonable request of
the Fund.
12. Termination of Agreement
12.1 Term. The initial term of this Agreement (the "Initial Term") shall be
two years from the date first stated above unless terminated pursuant
to the provisions of this Section 13. Unless a terminating party gives
written notice to the other party one hundred and twenty (120) days
before the expiration of the Initial Term or any Renewal Term, this
Agreement will renew automatically from year to year (each such
year-to-year renewal term a
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15
"Renewal Term"). One hundred and twenty (120) days before the expiration
of the Initial Term or a Renewal Term the parties to this Agreement will
agree upon a Fee Schedule for the upcoming Renewal Term.
12.2 Early Termination. Notwithstanding anything contained in this Agreement to
the contrary, should the Fund desire to move any of its services provided
by the Transfer Agent hereunder to a successor service provider prior to
the expiration of the then current Initial or Renewal Term, or without the
required notice, the Transfer Agent shall make a good faith effort to
facilitate the conversion on such prior date; however, there can be no
guarantee or assurance that the Transfer Agent will be able to facilitate
a conversion of services on such prior date. In the event that the Funds
set forth on Schedules A-1 and A-2 terminate this Agreement, during the
Initial Term for any reason, other than as prescribed under Section 12.7,
including converting the services to a successor service provider, or if
the Fund is liquidated or its assets merged or purchased or the like with
or by another entity which does not utilize the services of the Transfer
Agent, then each Fund shall pay the Transfer Agent its pro-rata portion of
the Conversion Fee based on its relative net assets in accordance with the
following:
(i) Termination prior to the end of the first year of this Agreement, the
Conversion Fee as set forth in Schedule 3.1.
(ii) Termination prior to the end of the second year of this Agreement,
half of the Conversion Fee as set forth in Schedule 3.1.
12.3 Expiration of Term. During the Initial Term or Renewal Term, whichever
currently is in effect, should either party exercise its right to
terminate, all reasonable out-of-pocket expenses or costs associated with
the movement of records and material will be borne by the Fund.
Additionally, the Transfer Agent reserves the right to charge for any
other reasonable expenses associated with such termination. Section 12.3
shall not apply if the Transfer Agent is terminated pursuant to Sections
12.6 or Section 12.7.
12.4 Confidential Information. Upon termination of this Agreement, each party
shall return to the other party all copies of confidential or proprietary
materials or information received from such other party hereunder, other
than materials or information required to be retained by such party under
applicable laws or regulations.
12.5 Unpaid Invoices. The Transfer Agent may terminate this Agreement
immediately upon an unpaid invoice payable by the Fund to the Transfer
Agent being outstanding for more than ninety (90) days, except with
respect to any amount subject to a good faith dispute within the meaning
of Section 3.4 of this Agreement.
12.6 Bankruptcy. Either party hereto may terminate this Agreement by notice to
the other party, effective at any time specified therein, in the event
that (a) the other party ceases to carry on its business or (b) an action
is commenced by or against the other party under Title 11 of the United
States Code or a receiver, conservator or similar officer is appointed for
the other party and such suit, conservatorship or receivership is not
discharged within thirty (30) days.
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16
12.7 Cause. If either of the parties hereto becomes in default in the
performance of its duties or obligations hereunder, and such default has a
material effect on the other party, then the non-defaulting party may give
notice to the defaulting party specifying the nature of the default in
sufficient detail to permit the defaulting party to identify and cure such
default. If the defaulting party fails to cure such default within sixty
(60) days of receipt of such notice, or within such longer period of time
as the parties may agree is necessary for such cure, then the
non-defaulting party may terminate this Agreement upon notice of not less
than thirty (30) days to the defaulting party.
13. Assignment and Third Party Beneficiaries
13.1 Neither the Agreement nor any rights or obligations hereunder may be
assigned by either party without the written consent of the other party,
which consent shall not be unreasonably withheld. Any attempt to do so in
violation of this Section shall be void. Unless specifically stated to the
contrary in any written consent to an assignment, no assignment will
release or discharge the assignor from any duty or responsibility under
this Agreement.
13.2 Except as explicitly stated elsewhere in this Agreement, nothing under
this Agreement shall be construed to give any rights or benefits in this
Agreement to anyone other than the Transfer Agent and the Fund, and the
duties and responsibilities undertaken pursuant to this Agreement shall be
for the sole and exclusive benefit of the Transfer Agent and the Fund.
This Agreement shall inure to the benefit of and be binding upon the
parties and their respective permitted successors and assigns.
13.3 This Agreement does not constitute an agreement for a partnership or joint
venture between the Transfer Agent and the Fund. Neither party shall make
any commitments with third parties that are binding on the other party
without the other party's prior written consent.
14. Subcontractors
14.1 The Transfer Agent may, with consent on the part of the Fund, subcontract
for the performance hereof with (i) any of its subsidiaries duly
registered as a transfer agent or (ii) any of its affiliates duly
registered as a transfer agent. The Transfer Agent shall be fully
responsible to the Fund for the acts and omissions of its subsidiary or
affiliate as it is for its own acts and omissions.
14.2 Nothing herein shall impose any duty upon the Transfer Agent in connection
with or make the Transfer Agent liable for the actions or omissions to act
of unaffiliated third parties such as by way of example and not
limitation, Airborne Services, Federal Express, United Parcel Service, the
U.S. Mails, the NSCC and telecommunication companies, provided, if the
Transfer Agent selected such company, the Transfer Agent shall have
exercised due care in selecting the same.
15. Miscellaneous
15.1 Amendment. This Agreement may be amended or modified by a written
agreement executed by both parties.
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15.2 Massachusetts Law to Apply. This Agreement shall be construed and the
provisions thereof interpreted under and in accordance with the laws of
The Commonwealth of Massachusetts.
15.3 Force Majeure. In the event either party is unable to perform its
obligations under the terms of this Agreement because of acts of God,
strikes, equipment or transmission failure or damage reasonably beyond its
control, or other causes reasonably beyond its control, such party shall
not be liable for damages to the other for any damages resulting from such
failure to perform or otherwise from such causes; provided that the
parties shall take reasonable steps under the facts and circumstances then
prevailing to mitigate damages arising out of such causes and events.
15.4 Consequential Damages. Neither party to this Agreement shall be liable to
the other party for special, indirect or consequential damages under any
provision of this Agreement or for any special, indirect or consequential
damages arising out of any act or failure to act hereunder.
15.5 Survival. All provisions regarding indemnification, warranty, liability,
and limits thereon, and confidentiality and/or protections of proprietary
rights and trade secrets shall survive the termination of this Agreement.
15.6 Severability. If any provision or provisions of this Agreement shall be
held invalid, unlawful, or unenforceable, the validity, legality, and
enforceability of the remaining provisions shall not in any way be
affected or impaired.
15.7 Priorities Clause. In the event of any conflict, discrepancy or ambiguity
between the terms and conditions contained in this Agreement and any
Schedules or attachments hereto, the terms and conditions contained in
this Agreement shall take precedence.
15.8 Waiver. No waiver by either party or any breach or default of any of the
covenants or conditions herein contained and performed by the other party
shall be construed as a waiver of any succeeding breach of the same or of
any other covenant or condition.
15.9 Merger of Agreement. This Agreement constitutes the entire agreement
between the parties hereto and supersedes any prior agreement with respect
to the subject matter hereof whether oral or written.
15.10 Counterparts. This Agreement may be executed by the parties hereto on any
number of counterparts, and all of said counterparts taken together shall
be deemed to constitute one and the same instrument.
15.11 Reproduction of Documents. This Agreement and all schedules, exhibits,
attachments and amendments hereto may be reproduced by any photographic,
photostatic, microfilm, microcard, miniature photographic or other
similar process. The parties hereto each agree that any such reproduction
shall be admissible in evidence as the original itself in any
15
18
judicial or administrative proceeding, whether or not the original is
in existence and whether or not such reproduction was made by a party
in the regular course of business, and that any enlargement, facsimile
or further reproduction shall likewise be admissible in evidence.
15.12 Notices. All notices and other communications as required or
permitted hereunder shall be in writing and sent by first class mail,
postage prepaid, addressed as follows or to such other address or
addresses of which the respective party shall have notified the other.
(a) If to Boston Financial Data Services, Inc., to:
Boston Financial Data Services, Inc.
0000 Xxxxxxx Xxxxxx, Xxxxx 000X
Xxxxxx, Xxxxxxxxxxxxx 00000
Attention: Legal Department
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
(b) If to the Fund, to:
Credit Suisse Asset Management, LLC
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxx Xxxxxx, General Counsel
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
17. Additional Funds
In the event that the Fund establishes one or more series of Shares,
in addition to those listed on the attached Schedules A-1 and A-2,
with respect to which it desires to have the Transfer Agent render
services as transfer agent under the terms hereof, it shall so notify
the Transfer Agent in writing, and if the Transfer Agent agrees in
writing to provide such services, such series of Shares shall become a
Portfolio hereunder.
18. Limitations of Liability of Trustees and Shareholders
As applicable, a copy of the Declaration of Trust of the Fund is on
file with the Secretary of The Commonwealth of Massachusetts, and
notice is hereby given that this instrument is executed on behalf of
the Trustees of the Fund as Trustees and not individually and that the
obligations of this instrument are not binding upon any of the
Trustees or Shareholders individually but are binding only upon the
assets and property of the Fund.
16
19
19. Each Fund a Separate Party to Agreement
---------------------------------------
19.1 Each undersigned Fund is a separate party under this Agreement.
19.2 Each Fund that is a party hereto shall be regarded for all purposes as a
separate party apart from any of the other funds which are parties. Each
Fund (or a particular Portfolio) shall be responsible only for its own
actions and no property of a Fund (or a particular Portfolio) shall be
commingled with the property of any other Fund (or a particular
Portfolio).
19.3 The use of this single document to memorialize the separate Agreement of
each of the undersigned Funds is understood to be for clerical
convenience only and shall not constitute any basis for joining the Funds
(or a particular Portfolio) in any respect.
19.4 This Agreement is executed by the officers of each Fund in their capacity
as such and not individually. Any responsibility or liability of a Fund
(or a particular Portfolio) under any provision of this Agreement shall
be satisfied solely from the assets of that Fund or of the particular
portfolio, tangible or intangible, realized or unrealized, and in no
event shall the Transfer Agent or any other person have any recourse
against the shareholders, officers or, to the extent applicable,
directors/trustees of the Fund under this Agreement or against any one
Fund or Portfolio for the obligations of any Fund or Portfolio.
[THIS SPACE INTENTIONALLY LEFT BLANK.]
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
in their names and on their behalf by and through their duly authorized
officers, as of the day and year first above written.
EACH OF THE PARTIES, INDIVIDUALLY
AND NOT JOINTLY, AS INDICATED ON
THE SCHEDULE A-1
BY:
------------------------------
Xxx Xxxxxx, Secretary
ATTEST:
---------------------------
EACH OF THE PARTIES, INDIVIDUALLY
AND NOT JOINTLY, AS INDICATED ON
THE SCHEDULE A-2
BY:
------------------------------
Xxxxxx Xxxxx, Secretary
ATTEST:
---------------------------
BOSTON FINANCIAL DATA SERVICES, INC.
BY:
------------------------------
Xxxxxx X. Xxxxx, President
ATTEST:
---------------------------
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21
SCHEDULE A-1
Dated: _____________
Credit Suisse Institutional Fund, Inc.
Emerging Markets Portfolio
International Equity Portfolio
Warburg Pincus Post-Venture Capital Portfolio
Small Company Growth Portfolio
Value Portfolio
Credit Suisse Institutional International Growth Fund, Inc.
Credit Suisse Institutional High Yield Fund, Inc.
Credit Suisse Institutional U.S. Core Equity Fund, Inc.
Credit Suisse Institutional U.S. Core Fixed Income Fund, Inc.
Warburg, Xxxxxx Balanced Fund, Inc.
Warburg, Xxxxxx Capital Appreciation Fund, Inc.
Warburg, Pincus Cash Reserve Fund, Inc.
Warburg, Xxxxxx Emerging Growth Fund, Inc.
Warburg, Xxxxxx Emerging Markets Fund, Inc.
Warburg, Xxxxxx European Equity Fund, Inc.
Warburg, Xxxxxx Fixed Income Fund, Inc.
Warburg, Xxxxxx Focus Fund, Inc.
Warburg, Xxxxxx Global Financial Services Fund, Inc.
Warburg, Xxxxxx Global Fixed Income Fund, Inc.
Warburg, Xxxxxx Global Health Sciences Fund, Inc.
Warburg, Xxxxxx Global New Technologies Fund, Inc.
Warburg, Xxxxxx Global Post-Venture Capital Fund, Inc.
Warburg, Xxxxxx Global Telecommunications Fund, Inc.
Warburg, Xxxxxx Intermediate Maturity Government Fund, Inc.
Warburg, Xxxxxx International Equity Fund, Inc.
Warburg, Xxxxxx International Small Company Fund, Inc.
Warburg, Xxxxxx Japan Growth Fund, Inc.
Warburg, Xxxxxx Japan Small Company Fund, Inc.
Warburg, Pincus Long-Short Market Neutral Fund, Inc.
Warburg, Xxxxxx Major Foreign Markets Fund, Inc.
Warburg, Xxxxxx Municipal Bond Fund, Inc.
Warburg, Xxxxxx New York Intermediate Municipal Fund, Inc.
Warburg, Xxxxxx New York Tax Exempt Fund, Inc.
Warburg, Xxxxxx Small Company Growth Fund, Inc.
Warburg, Xxxxxx Small Company Value II Fund, Inc.
22
Warburg, Xxxxxx Trust
Emerging Markets Portfolio
Value Portfolio
International Equity Portfolio
Global Post-Venture Capital Portfolio
Small Company Growth Portfolio
Emerging Growth Portfolio
Warburg, Xxxxxx Trust II
Fixed Income Portfolio
Warburg, Xxxxxx Value II Fund, Inc.
Warburg, Xxxxxx WorldPerks Money Market Fund, Inc.
Warburg, Xxxxxx WorldPerks Tax Free Money Market Fund, Inc.
EACH OF THE PARTIES, INDIVIDUALLY BOSTON FINANCIAL DATA SERVICES, INC.
AND NOT JOINTLY, AS INDICATED ON
THE SCHEDULE A-1
BY: BY:
------------------------------ -------------------------------
Xxx Xxxxxx, Secretary Xxxxxx X. Xxxxx, President
23
SCHEDULE A-2
Credit Suisse Warburg Pincus Capital Funds
Credit Suisse Warburg Pincus Value Fund
Credit Suisse Warburg Pincus Blue Chip Fund
Credit Suisse Warburg Pincus Small Company Value Fund
Credit Suisse Warburg Pincus Fixed Income II Fund
Credit Suisse Warburg Pincus Municipal Trust Fund
Credit Suisse Warburg Pincus Opportunity Funds
Credit Suisse Warburg Pincus International Equity II Fund
Credit Suisse Warburg Pincus Developing Markets Fund
Credit Suisse Warburg Pincus High Income Fund
Credit Suisse Warburg Pincus U.S. Government Money Fund
Credit Suisse Warburg Pincus Municipal Money Fund
Credit Suisse Warburg Pincus Select Funds
Credit Suisse Warburg Pincus Strategic Growth Fund
Credit Suisse Warburg Pincus Technology Fund
EACH OF THE PARTIES, INDIVIDUALLY BOSTON FINANCIAL DATA SERVICES, INC.
AND NOT JOINTLY, AS INDICATED ON
THE SCHEDULE A-2
BY: ______________________________ BY: _________________________________
Xxxxxx Xxxxx, Secretary Xxxxxx X. Xxxxx, President
24
SCHEDULE 3.1
FEES
Effective: _________________, 2001 through __________________, 2003
Annual Account Service Fees
Open Accounts (Complex Accounts)
0 -- 175K 176 -- 225K 226K+
--------------------------------
Daily $12.00 $11.40 $10.80
Non-Daily $ 9.50 $ 8.90 $ 8.30
Matrix Xxxxx 0 Accounts $ 8.00 $ 7.40 $ 6.80
Closed Account Fee $ 3.00
Activity Based Fees
New Account Set-up $ 4.00/Each
Manual Transaction (1 -- 275,000 Transactions) $ 2.00/Each
Manual Transactions (275,001 -- 325,000) $ 1.75/Each
Manual Transactions (325,001 + Transactions) $ 1.50/Each
Omnibus Transactions $ 2.50/Each
Telephone Calls (Overflow) $ 3.00/Each
Correspondence $ 4.00/Each
Optional Fees
Investor/Per Investor $ 1.80/Account/Year
12b-1 Fees $ 1.00/Account/Year
TPA Relationship/Per Relationship $ 10,000.00/Year
XXX Custodial Fees
Annual Maintenance $ 12.50/Account
Maximum $ 25.00/SSN
Conversion
Conversion Fee (One Time) $100,000.00*
*Waived subject to the terms of Section 12.2 of the Agreement.
25
SCHEDULE 3.1
FEES
(Continued)
Balance Earnings Credit
-----------------------
A balance earnings credit from the Fund's DDA balances will be used to
partially offset transfer agent fees. The credit paid to the Transfer Agent
from such balance earnings will be as set forth below:
0-30 Cusips $375,000 per annum
Each additional cusip over 30 cusips
Open Cusip $ 10,000 per cusip, per annum**
Closed Cusip $ 4,000 per cusip, per annum**
**Waived for first 6 months following the establishment of cusip.
Northwest WorldPerks reconciliation fee $ 75,000 per annum
The above may be adjusted on a periodic basis (i.e.: monthly, quarterly, and
annual) by agreement of the parties.
Out-of-Pocket Expenses Billed as incurred
Out-of-Pocket expenses include but are not limited to: confirmation statements,
investor statements, audio response, long distance telephone calls, records
retention, customized programming/enhancements, federal wire fees, transcripts,
microfilm, microfiche, disaster recovery, software licensing, banking services,
image print station, remote imaging, hardware at the Fund's facility, and
expenses incurred at the specific direction of the Fund.
EACH OF THE PARTIES, INDIVIDUALLY BOSTON FINANCIAL DATA SERVICES, INC.
AND NOT JOINTLY, AS INDICATED ON
THE SCHEDULE A-1
BY:______________________________ BY:__________________________________
Xxx Xxxxxx, Secretary Xxxxxx X. Xxxxx, President
EACH OF THE PARTIES, INDIVIDUALLY
AND NOT JOINTLY, AS INDICATED ON
THE SCHEDULE A-2
BY:______________________________
Xxxxxx Xxxxx, Secretary
2
