EXHIBIT 8.(l).
ADMINISTRATIVE SERVICE AGREEMENT
THIS AGREEMENT is made as of this 23rd day of January, 2001, by and
between Homestead Funds, Inc. ("Homestead Funds"), a Maryland corporation, on
behalf of the International Stock Index Fund, and RE Advisers Corporation ("RE
Advisers"), a Virginia corporation.
WHEREAS, Homestead Funds engages in business as an open-end management
investment company and is registered as such under the Investment Company Act of
1940, as amended (the "1940 Act"); and
WHEREAS, Homestead Funds is a series type investment company currently
consisting of eight series, each with its own investment program, policies,
objectives, and restrictions; and
WHEREAS, Homestead Funds desires to retain RE Advisers to perform
certain administrative services on behalf of its International Stock Index Fund
pursuant to the terms and conditions set forth herein and RE Advisers desires to
perform such services;
NOW, THEREFORE, the parties hereto agree as follows:
1. Administrative Services. RE Advisers shall provide certain
administrative services to the International Stock Index Fund,
including: (i) maintenance of the International Stock Index Fund's
corporate existence and corporate records; (ii) maintenance of the
registration and qualification of the International Stock Index Fund's
shares under federal and state law; (iii) coordination and supervision
of the financial, accounting, and administrative functions for the
International Stock Index Fund; (iv) selection, coordination of the
activities of, supervision, and service as liaison with various agents
and other parties employed by the International Stock Index Fund (e.g.,
custodian, transfer agent, auditors, and attorneys); and (v) assistance
in the preparation and development of all shareholder communications and
reports. RE Advisers also will furnish to or place at the disposal of
the International Stock Index Fund such information, reports,
evaluations, analyses, and opinions as the International Stock Index
Fund may, from time to time, reasonably request or which RE Advisers
believes would be helpful to the International Stock Index Fund.
2. Compensation. Homestead Funds, with respect to the International Stock
Index Fund, shall pay RE Advisers as compensation for all services
rendered and for the expenses which it assumes, on a monthly basis, an
administration fee based on the International Stock Index Fund's average
daily net assets at an annualized rate equal to .25% of average daily
net assets. The fee shall accrue each calendar day and the sum of the
daily fee accruals shall be paid monthly on the first business day of
the next calendar month. The daily fee accruals shall be computed by
multiplying the fraction of one over the number of calendar days in the
year by the annual rate described above and multiplying the product by
the net assets of
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the International Stock Index Fund as determined in accordance with
Homestead Funds' prospectus as of the close of business on the previous
business day on which Homestead Funds was open for business.
3. Services to Other Clients. Nothing herein contained shall limit the
freedom of RE Advisers to render administrative services to other
investment companies or engage in other business activities with other
persons, firms or corporations.
4. Limitation of Liability. Neither RE Advisers, any of its officers,
directors, or employees, nor any person performing, at the direction or
request of RE Advisers, administrative or other functions for Homestead
Funds with respect to the International Stock Index Fund in connection
with RE Advisers' discharge of its obligations undertaken or reasonably
assumed with respect to this Agreement, shall be liable for any error of
judgment or mistake of law or for any loss suffered by Homestead Funds,
with respect to the International Stock Index Fund, in connection with
the matters to which this Agreement relates, except for loss resulting
from willful misfeasance, bad faith, or gross negligence in the
performance of its duties on behalf of Homestead Funds or from reckless
disregard by RE Advisers or any such person of the duties of RE Advisers
under this Agreement.
5. Term. This Agreement shall remain in full force and effect for a period
of one year from the date hereof and shall be automatically renewed
thereafter for successive one-year periods, unless otherwise terminated
in accordance with the provisions of this Agreement
6. Termination. This Agreement may be terminated upon mutual agreement of
the parties in writing or by either party hereto, without the payment of
any penalty, upon 60 days prior written notice to the other party.
7. Amendment. This Agreement may be amended only upon mutual agreement of
the parties in writing.
8. Assignment. Neither this Agreement nor any of the rights, obligations or
liabilities of either party may be assigned without the prior written
consent of the other party, except that RE Advisers is authorized to
delegate any of its obligations to State Street Bank and Trust Company
or any of its affiliates so long as RE Advisers remains responsible for
any compensation due any delegate.
9. Captions. The captions in this Agreement are included for convenience of
reference only and in no other way define or delineate any of the
provisions hereof or otherwise affect their construction or effect.
10. Interpretation. Nothing herein contained shall be deemed to require
Homestead Funds to take any action contrary to its Articles of
Incorporation or By-Laws, or any applicable statutory or regulatory
requirement to which it is subject or by
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which it is bound, or to relieve or deprive the Board of Directors of
its responsibility for and control of the conduct of the affairs of
Homestead Funds.
11. Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original but all of which together constitute
one and the same instrument.
IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement
to be duly executed on its behalf by a duly authorized officer as of the date
specified above.
HOMESTEAD FUNDS, INC.
By: Xxxxx Xxxxxx
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Name: Xxxxx Xxxxxx
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Title: Vice President
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RE ADVISERS CORPORATION
By: Xxxxx Xxxxxx
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Name: Xxxxx Xxxxxx
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Title: Vice President
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