AMENDED AND RESTATED
FOREIGN CUSTODY MANAGER AGREEMENT
AGREEMENT made as of the 24th day of April, 2008 between Rydex Dynamic
Funds (the "Trust") and U.S. Bank, N.A. (formerly, Star Bank, N.A.) ("U.S. Bank"
or the "Custodian").
WITNESSETH:
WHEREAS, U.S. Bank serves as Custodian to the Trust pursuant to a
Custody Agreement dated November 30, 1993;
WHEREAS, U.S. Bank desires to serve as a Foreign Custody Manager and
perform the duties set forth herein the terms and conditions contained herein;
NOW THEREFORE, in consideration of the mutual promises hereinafter
contained in this Agreement, the Trust and U.S. Bank hereby agree as follows:
ARTICLE I
DEFINITIONS
Whenever used in this Agreement, the following words and phrases,
unless the context otherwise requires, shall have the following meaning:
1. Capitalized terms used in this Agreement and not otherwise defined
in this Agreement have the meanings given such terms in the Rule, as that term
is defined below.
2. "BOARD" means the board of trustees of the Trust.
3. "ELIGIBLE FOREIGN CUSTODIAN" has the meaning set forth in the Rule.
4. "FOREIGN ASSETS" means any investments (including foreign
currencies) for which the primary market is outside the United States, and any
cash and cash equivalents that are reasonably necessary to effect the Trust's or
the Trust's series' (each, a "Fund" and collectively, the "Funds") transactions
in those investments.
4. "MONITORING SYSTEM" means a system established by U.S. Bank to
fulfill the Responsibilities specified in clauses 1(d) and (e) of Article IV of
this Agreement.
5. "RESPONSIBILITIES" means the responsibilities delegated to U.S. Bank
as a Foreign Custody Manager with respect to each Specified Country and each
Eligible Foreign Custodian selected by U.S. Bank, as such responsibilities are
more fully described in Article IV of this Agreement.
6. "RULE" means Rule 17f-5 under the Investment Company Act of 1940, as
amended.
7. "SPECIFIED COUNTRY" means each country listed on Schedule I attached
hereto (as such Schedule may be amended by U.S. Bank from time to time) and each
country, other than the United States, constituting the primary market for a
security with respect to which the Trust, or a Fund, has given settlement
instructions to U.S. Bank as custodian under its Custody Agreement with the
Trust.
8. "SUB-CUSTODIAN" means and includes (i) any branch of a "U.S. bank,"
as that term is defined in the Rule, and (ii) any Eligible Foreign Custodian
having a contract with the Custodian which the Custodian has determined will
provide reasonable care of the Trust's assets based on the standards specified
in Article IV.
ARTICLE II
U.S. BANK AS A FOREIGN CUSTODY MANAGER
1. The Trust on behalf of its Board hereby delegates to U.S. Bank with
respect to each Specified Country the Responsibilities (the "Delegation").
2. U.S. Bank accepts the Delegation and agrees in performing the
Responsibilities as a Foreign Custody Manager to exercise reasonable care,
prudence and diligence such as a bailee for hire having responsibility for
safekeeping of the Trust's Foreign Assets (as such defined by the Rule) would
exercise.
3. U.S. Bank will provide to the Board and the Funds' investment
adviser (the "Advisor") written reports notifying them of the placement of
Foreign Assets with a particular Sub-Custodian and/or Eligible Foreign Custodian
selected by U.S. Bank within a Specified Country and any material change in the
Trust's or a Fund's foreign custody arrangements (including any material change
in any contract governing such arrangements) at such times as the Board deems
reasonable and appropriate based on the circumstances of the Trust's foreign
custody arrangements.
ARTICLE III
APPOINTMENT OF AGENTS
1. In its discretion, the Custodian may appoint one or more
Sub-Custodians to establish and maintain arrangements with Eligible Foreign
Custodians who are members of the Sub-Custodian's network to hold Securities and
cash of a Fund and to carry out such other provisions of this Agreement as it
may determine; provided, however, that the appointment of any Sub-Custodian and
the maintenance of a Fund's Foreign Assets will be at the Custodian's expense
and will not relieve the Custodian of any of its obligations or liabilities
under this Agreement or the Rule. The Custodian will be liable for the actions
of any Sub-Custodian (regardless of whether Foreign Assets are maintained in the
custody of a Sub-Custodian, a member of its network, or an Eligible Securities
Depository in accordance with Rule 17f-7 under the Investment Company Act of
1940 (the "1940 Act")) appointed by it as if such actions had been done by the
Custodian.
2. If, after the initial appointment of a Sub-Custodian by the Board in
connection with this Agreement, the Custodian wishes to appoint additional or
different Sub-Custodians
other than Eligible Foreign Custodians to hold property of the Trust, it will
promptly notify the Advisor and provide it with information reasonably necessary
for the Board to approve the Sub-Custodian's, including a copy of the proposed
agreement with such Sub-Custodian. The Board will approve such Sub-Custodian at
the next regularly scheduled meeting of the Board following the Advisor's
receipt of such notice.
3. In performing its delegated responsibilities as foreign custody
manager to place or maintain a Fund's assets with a Sub-Custodian, the Custodian
will determine that the Fund's assets will be subject to reasonable care, based
on the standards applicable to custodians in the Specified Country in which the
Fund's assets will be held by that Sub-Custodian, after considering all factors
relevant to safekeeping of such assets, including, without limitation, the
factors specified in Rule 17f-5(c)(1) under the 0000 Xxx.
4. The agreement between the Custodian and each Sub-Custodian acting
hereunder will provide reasonable care for Foreign Assets based on the standards
specified in Rule 17f-5(c)(1) and contain the required provisions set forth in
Rule 17f-5(c)(2) under the 0000 Xxx.
5. The Custodian hereby warrants to the Trust that it agrees to
exercise reasonable care, prudence and diligence such as a person having
responsibility for the safekeeping of property of the Trust. The Custodian
further warrants that the Trusts' assets will be subject to reasonable care if
maintained with a Sub-Custodian, after considering all factors relevant to the
safekeeping of such assets, including, without limitation: (i) the
Sub-Custodian's practices, procedures, and internal controls for certificated
securities (if applicable), its method of keeping custodial records, and its
security and data protection practices; (ii) whether the Sub-Custodian has the
requisite financial strength to provide reasonable care for Fund assets; (iii)
the Sub-Custodian's general reputation and standing; and (iv) whether the Trust
will have jurisdiction over and be able to enforce judgments against the
Sub-Custodian, such as by virtue of the existence of any offices of the
Sub-Custodian in the United States or the Sub-Custodian's consent to service of
process in the United States.
6. The Custodian will ensure that a Sub-Custodian has established an
effective system to monitor on a continuing basis: (i) the appropriateness of
maintaining a Fund's assets with an Eligible Foreign Custodian who is a member
of a Sub-Custodian's network; (ii) the performance of the contract governing the
Trust's and/or Sub-Custodian's arrangements with such Eligible Foreign
Custodian; and (iii) the custody risks of maintaining assets with an Eligible
Securities Depository. The Custodian must promptly notify the Trust and the
Advisor of any material change in these risks.
7. The Custodian will use reasonable commercial efforts to collect all
income and other payments with respect to Foreign Assets to which the Trust is
be entitled and will credit such income, as collected, to the Trust. In the
event that extraordinary measures are required to collect such income, the Trust
and Custodian will consult as to the measurers and compensation and expenses of
the Custodian relating to such measures.
ARTICLE IV
RESPONSIBILITIES
1. Subject to the provisions of this Agreement, U.S. Bank will, with
respect to each Specified Country, select an Eligible Foreign Custodian. In
connection therewith, U.S. Bank must: (a) determine that Foreign Assets of the
Funds held by such Eligible Foreign Custodian will be subject to reasonable
care, based on the standards applicable to custodians in the relevant market in
which such Eligible Foreign Custodian operates, after considering all factors
relevant to the safekeeping of such assets, including, without limitation, those
contained in Section (c)(1) of the Rule; (b) determine that the Trust's foreign
custody arrangements with each Eligible Foreign Custodian are governed by a
written contract with the Custodian which will provide reasonable care for the
Trust's assets based on the standards specified in paragraph (c)(1) of the Rule;
(c) determine that each contract with an Eligible Foreign Custodian includes the
provisions specified in paragraph (c)(2)(i)(A) through (F) of the Rule or,
alternatively, in lieu of any or all of such (c)(2)(i)(A) through (F)
provisions, such other provisions as the Custodian determines will provide in
their entirety, the same or a greater level of care and protection for the
Trust's assets as the provisions set forth in (c)(2)(i)(A) through (F); (d)
monitor pursuant to the Monitoring System the appropriateness of maintaining the
a Fund's Foreign Assets with a particular Eligible Foreign Custodian pursuant to
paragraph (c)(1) of the Rule including the performance of the contract governing
such arrangement; and (e) promptly advise the Trust and the Advisor whenever the
Custodian determines under the Monitoring System that an arrangement (including
any material change in the contract governing such arrangement) described in
preceding clause (c) no longer meets the requirements of the Rule, and withdraw
the Trust's Foreign Assets from such Eligible Foreign Custodian as promptly as
is reasonable practicable.
2. For purposes of clause (d) of preceding Section 1 of this Article,
U.S. Bank's determination of appropriateness shall not include, nor be deemed to
include, and evaluation of Country Risks associated with investment in a
Specified Country. For purposes hereof, "Country Risks" shall mean systematic
risks of holding assets in a particular country including, but not limited to,
(a) a Sub-Custodian's or Eligible Foreign Custodian's use of any depositories
that act as or operate a system or transnational system for the central handling
of securities or equivalent book-entries; (b) a Specified Country's financial
infrastructure, (c) a Specified Country's prevailing custody and settlement
practices, (d) nationalization, expropriation or other governmental actions, (e)
regulation of the banking or securities industry, (f) currency controls,
restrictions, devaluations or fluctuations, and (g) market conditions which
affect the orderly execution of securities transactions or affect the value of
securities.
ARTICLE V
REPRESENTATIONS
1. The Trust hereby represents that: (a) this Agreement has been duly
authorized, executed and delivered by the Trust, constitutes a valid and legally
binding obligation of the Trust enforceable in accordance with its terms, and no
statute, regulation, rule, order, judgment or contract binding on the Trust
prohibits the Trust's execution or performance of this Agreement; (b) this
Agreement has been approved and ratified by the Board at a meeting duly
called and at which a quorum was at all times present; and (c) the Board or the
Advisor has considered the Country Risks associated with investment in each
Specified Country and will have considered such risks prior to any settlement
instructions being given to the Custodian with respect to any other Specified
Country.
2. U.S. Bank hereby represents that: (a) U.S. Bank is duly organized
and existing as a National Banking Association organized under the laws of the
United States with principal offices located in Cincinnati, Ohio, with full
power to carry on its business as now conducted, and to enter into this
Agreement and to perform its obligations hereunder; (b) this Agreement has been
duly authorized, executed and delivered by U.S. Bank, constitutes a valid and
legally binding obligation of U.S. Bank enforceable in accordance with its
terms, and no statute, regulation, rule, order, judgment or contract binding on
U.S. Bank prohibits U.S. Bank's execution or performance of this Agreement; (c)
U.S. Bank is a "U.S. bank" as defined in paragraph (a)(7) of the Rule; and (d)
U.S. Bank has established and will maintain the Monitoring System.
ARTICLE VI
CONCERNING U.S. BANK
1. U.S. Bank shall not be liable for any costs, expenses, damages,
liabilities or claims, including attorneys' and accountants' fees, sustained or
incurred by, or asserted against, the Trust except to the extent the same arises
out of the failure of U.S. Bank to exercise the care, prudence and diligence
required by Section 2 of Article II hereof. In no event shall U.S. Bank be
liable to the Trust, the Board, or any third party for special, indirect or
consequential damages, or for lost profits or loss of business, arising in
connection with this Agreement. Anything contained herein to the contrary
notwithstanding, nothing contained herein shall affect or alter the duties and
responsibilities of U.S. Bank or the Trust under any other agreement between
U.S. Bank and the Trust, including without limitation, the Custody Agreement or
any Securities Lending Agreement.
2. The Trust agrees to indemnify U.S. Bank and hold it harmless from
and against any and all costs, expenses, damages, liabilities or claims,
including attorneys' and accountants' fees, sustained or incurred by, or
asserted against, U.S. Bank by reason or as a result of any action or inaction
or arising out of U.S. Bank's performance hereunder, provided that the Trust
shall not indemnify U.S. Bank to the extent any such costs, expenses, damages,
liabilities or claims arises out of U.S. Bank's failure to exercise the
reasonable care, prudence and diligence required by Section 2 of Article II
hereof.
3. U.S. Bank shall have only such duties as are expressly set forth
herein. In no event shall U.S. Bank be liable for any Country Risks associated
with investments in a particular country.
ARTICLE VII
MISCELLANEOUS
1. This Agreement constitutes the entire agreement between the Trust
and U.S. Bank with respect to the subject matter. In the event of a conflict
between the provisions in the Custody Agreement between the Trust and the
Custodian and the terms of this Agreement, the terms of this Agreement shall
govern. The Custodian shall be compensated for providing the services set forth
in this Agreement in accordance with the fee schedule set forth on Schedule III
attached hereto (as amended from time to time).
2. Any notice or other instrument in writing, authorized or required by
this Agreement to be given to U.S. Bank, shall be sufficiently given if received
by it at its offices at 000 Xxxxxx Xxxxxx, Xxxxxxxxxx, Xxxx 00000, or at such
place as U.S. Bank may from time to time designate in writing.
3. Any notice or other instrument in writing, authorized or required by
this Agreement to be given to the Trust shall be sufficiently given if received
by it at its offices at c/o Rydex Dynamic Funds, 0000 Xxxxxxxxx Xxxx, Xxxxx 000,
Xxxxxxxxx, Xxxxxxxx 00000, Attention: Xxxx X. Xxxxxxxxxxx, Vice President, or at
such other place as the Trust may from time to time designate in writing.
4. In case any provision in or obligation under this Agreement shall be
invalid, illegal or unenforceable in any jurisdiction, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
thereby. This Agreement may not be amended or modified in any manner except by a
written agreement executed by both parties. This Agreement shall extend to and
shall be binding upon the parties hereto, and their respective successors and
assigns; provided however, that this Agreement shall not be assignable by either
party without the written consent of the other.
5. This Agreement shall be construed in accordance with the substantive
laws of the State of Delaware, without regard to conflicts of laws principles
thereof. The Trust and U.S. Bank each hereby irrevocably waive any and all
rights to trial by jury in any legal proceeding arising out of or relating to
this Agreement.
6. The parties hereto agree that in performing hereunder, U.S. Bank is
acting solely on behalf of the Trust and no contractual or service relationship
shall be deemed to be established hereby between U.S. Bank and any other person.
7. This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original, but such counterparts shall,
together, constitute only one instrument.
8. This Agreement will terminate simultaneously with the termination of
the Custody Agreement between the Trust and the Custodian, and may otherwise be
terminated by either party giving to the other party a notice in writing
specifying the date of such termination, which shall be not less than sixty (60)
days after the date of such notice.
9. In consideration of the services provided by U.S. Bank hereunder,
the Trust will pay to U.S. Bank such compensation and out-of-pocket expenses as
may be agreed upon from time to time.
IN WITNESS WHEREOF, the Trust and U.S. Bank have caused this Agreement
to be executed by their respective officers, thereunto duly authorized, as of
the date first above written.
RYDEX DYNAMIC FUNDS
/s/ Xxxx X. Xxxxxxxxxxx, President
on behalf of each Fund identified on
Schedule II attached hereto individually
and severally, and not jointly and severally
U.S. BANK, N.A.
By: /s/ Xxxxxxx X. XxXxx
---------------------
Title: Vice President
--------------
FOREIGN CUSTODY MANAGER AGREEMENT
SCHEDULE I
Ireland
India
FOREIGN CUSTODY MANAGER AGREEMENT
SCHEDULE II
NASDAQ-100(R) 2x Strategy Fund
FOREIGN CUSTODY MANAGER AGREEMENT
SCHEDULE III
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GLOBAL SUB-CUSTODIAL SERVICES
ANNUAL FEE SCHEDULE AND SPECIFIED COUNTRIES
------------------------------------------------------------------------------------------------------------------------------------
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
COUNTRY INSTRUMENT SAFEKEEPING TRANSACTION COUNTRY INSTRUMENT SAFEKEEPING TRANSACTION
(BPS) FEE (BPS) FEE
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Argentina All 15.00 $40 Lithuania All 20.00 $50
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Australia All 2.00 $30 Luxembourg All 4.00 $25
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Austria All 3.50 $35 Malaysia All 6.00 $80
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Bahrain All 50.00 $140 Mali All 40.00 $155
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Bangladesh All 40.00 $150 Malta All 22.00 $75
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Belgium All 2.50 $45 Mauritius All 30.00 $100
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Benin All 40.00 $155 Mexico All 3.00 $20
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Bermuda All 15.00 $60 Morocco All 35.00 $100
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Botswana All 25.00 $50 Namibia All 30.00 $50
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Brazil All 15.00 $35 Netherlands All 3.00 $25
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Bulgaria All 40.00 $80 New Zealand All 3.00 $40
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Burkina Faso All 40.00 $155 Niger All 40.00 $155
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Canada All 1.25 $12 Nigeria All 30.0 $50
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Cayman Islands All 1.00 $10 Norway All 3.00 $45
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Channel Islands All 1.50 $25 Oman All 50.00 $140
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Chile All 20.00 $60 Pakistan All 30.00 $100
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
China"A" Shares All 15.00 $65 Palestinian All 45.00 $140
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
China"B" Shares All 15.00 $65 Peru All 45.00 $105
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Columbia All 40.00 $100 Philippines All 8.00 $75
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Costa Rica All 15.00 $60 Poland All 25.00 $50
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Croatia All 35.00 $65 Portugal All 15.00 $85
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Cyprus All 15.00 $45 Qatar All 45.00 $140
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Czech Republic All 20.00 $50 Romania All 35.00 $100
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Denmark All 3.00 $50 Russia Equities/Bonds 30.00 $200
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Ecuador All 35.00 $65 Russia MINFIN 15.00 $50
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Egypt All 40.00 $100 Senegal All 40.00 $155
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Estonia All 7.00 $25 Serbia All 65.00 $175
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Euromarkets(3) All 1.50 $10 Singapore All 3.00 $40
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Finland All 5.00 $45 Slovak Republic All 25.00 $110
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
France All 2.50 $45 Slovenia All 25.00 $110
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Germany All 1.00 $30 South Africa All 3.00 $15
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Ghana All 25.00 $50 South Korea All 10.00 $20
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Greece All 20.00 $105 Spain All 3.00 $50
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Guinea Bissau All 50.00 $155 Sri Lanka All 15.00 $60
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Hong Kong All 6.00 $60 Swaziland All 30.00 $50
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Hungary All 35.00 $135 Sweden All 2.00 $45
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Iceland All 15.00 $60 Switzerland All 2.00 $50
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
India All 10.00 $105 Taiwan All 20.00 $100
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Indonesia All 12.00 $100 Thailand All 6.00 $45
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Ireland Equities 3.00 $30 Togo All 40.00 $155
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Ireland Gov't Bonds 1.50 $10 Trinidad & Tobago All 30.00 $65
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Israel All 15.00 $45 Tunisia All 40.00 $45
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Italy All 3.00 $50 Turkey All 15.00 $15
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Ivory Coast All 40.00 $155 UAE All 45.00 $130
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Jamaica All 35.00 $50 United Kingdom All 1.50 $10
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Japan All 1.50 $15 Ukraine All 30.00 $45
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Jordan All 40.00 $125 Uruguay All 50.00 $65
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Kazakhstan All 60.00 $150 Venezuela All 40.00 $125
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Kenya All 30.00 $50 Vietnam All 40.00 $130
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Latvia Equities 15.00 $75 Zambia All 30.00 $50
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Latvia Bonds 25.00 $90 Zimbabwe All 30.00 $50
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
Lebanon All 25.00 $90
------------------- ---------------- ------------- ------------- ------------------- ---------------- ------------- -------------
BASE FEE - A monthly base charge of $1,200.00 per account (fund) will apply.
--------
Notes:
(1) Fee is expressed in basis points per annum where one basis point equals
one hundredth of one percent (.01%) and is calculated based upon
month-end market value, unless stated otherwise.
(2) A transaction is defined as a receipt or delivery versus payment, a
free receive or deliver, maturities, or security transaction related to
corporate events.
(3) Euroclear - Eurobonds only. Eurobonds are held in Euroclear at a
standard rate, but other types of securities (including but not limited
to equities, domestic market debt and mutual funds) will be subject to
a surcharge. In addition, certain transactions that are delivered
within Euroclear or from a Euroclear account to a third party
depository or settlement system, will be subject to a surcharge
(surcharge schedule available upon request)
o Note, for all other markets specified above, surcharges may
apply if a security is held outside of the local market.
Straight Through Processing - fees waived
FOR NON-US RESIDENT CLIENTS INVESTING IN THE U.S. MARKET:
Fees for US custody are provided on the basis that if assets are held in an
omnibus account for multiple underlying clients, the Client will take the
necessary action to attain Qualified Intermediary (QI) status for US IRS
withholding tax purposes. Should the Client fail to take the necessary action,
the fee quoted would be subject to review, and all costs incurred by The Bank of
New York in fulfilling its obligations under the US regulations would be passed
to the Client. Please refer to the separate Non-Resident Alien (NRA) fee
schedule.
NOTE: for the clients who are the sole beneficial owner of the assets held in
their account with The Bank of New York and the client has provided a "W8Ben"
form per account stating their ownership of the assets, the above will not
apply.
CASH TRANSACTIONS
o CURRENCY TRADE - $10.00 per transaction
o 3RD PARTY FOREIGN EXCHANGE - a Foreign Exchange transaction
undertaken through a third party will be charged $50.
STANDARD NON-U.S. PROXY SERVICES FEES
o Notification $5
o Vote $10
o Relationship Set Up Fee $100
TAX RECLAMATION SERVICES - may be subject to additional charges depending upon
the service level agreed. Tax reclaims that have been outstanding for more than
6 (six) months with the client will be charged $50 per claim.
COMMUNICATION FEES
o INFORM - Access to The Bank of New York proprietary application,
INFORM, for standard custody instructions and reporting will be
provided at a cost of USD 200 per month including installation
and training.
o SWIFT REPORTING AND MESSAGE FEES - the following fees will apply
in respect of client requested SWIFT reports and messages:
o CASH REPORTING -
o MT900 - Cash Debit Advice $1.80 each
o MT910 - Cash Credit Advice $1.80 each
o MT940 - Detail Cash Statement $1.00 per message
o MT950 - Cash Statement $1.00 per message
o SECURITIES POSITION REPORTING
o MT535 - Statement of Holdings $2.00 per message
One MT535 will be issued per account per month free of
charge.
o MT536 - Statement of Transactions $2.00 per message
o MT537 - Statement of Pendings $2.00 per message
o CONFIRMATIONS
o MT544 - Receive Free Confirm $1.00 per message
o MT545 - Receive Against Payment $1.00 per message
Confirm
o MT546 - Deliver Free Confirm $1.00 per message
o MT547 - Deliver Against Payment $1.00 per message
Confirm
o FACSIMILE REPORTING FEES
o Corporate Actions Notifications $2.00 per
notification
o Cash and Securities Reports $1.00 per page
OUT OF POCKET EXPENSES
o Charges incurred by The Bank of New York for local taxes,
stamp duties or other local duties and assessments, stock
exchange fees, postage and insurance for shipping,
facsimile reporting, extraordinary telecommunications fees
or other expenses which are unique to a country in which
the client or its clients is investing will be passed along
as incurred.
o A surcharge may be added to certain out-of-pocket expenses
listed herein to cover handling, servicing and other
administrative costs associated with the activities giving
rise to such expenses. Also, certain expenses are charged
at a predetermined flat rate.
