__________________, 1995
XXXXX TREASURY FUND
RE: CUSTODIAN SERVICES FEES
-----------------------
Dear Sir/Madam:
This letter constitutes the agreement between us with respect to
compensation to be paid to PNC Bank, National Association ("PNC Bank") under the
terms of a Custodian Services Agreement dated _________________, 1995 between
PNC Bank and Xxxxx Treasury Fund ("you" or the "Fund"). Pursuant to Paragraph 11
of that Agreement, and in consideration of the services to be provided to each
of the Fund's investment portfolios listed on Exhibit A of the Agreement, as
such Exhibit A may be amended from time to time (each, a "Portfolio"), you will
pay PNC Bank the following:
1. With respect to each portfolio, an annual custody fee of .015% for the
first $100 million of average gross assets; and .01% of the average gross assets
in excess of $100 million; exclusive of out-of-pocket expenses and transaction
charges. Custody fees shall be calculated daily and paid monthly.
2. A transaction charge of $29.00 for each purchase or sale of a physical
security or delivery of a physical security upon its maturity date or delivery
of a physical security for reissuance; $10.00 for each purchase, sale, free
receive or free deliver, or maturity or other book-entry transaction with
respect to a Federal book-entry security, DTC eligible security, other book-
entry security (other than a GNMA security) or a direct commercial paper issue;
$18.00 for each purchase, sale, free receive or free delivery, or maturity or
other book-entry transaction with respect to a GNMA security; $30.00 for each
purchase, sale, exercise or expiration of an option contract position (round
trip); $50.00 for each purchase, sale, exercise or expiration of a futures
contract position (round trip); and $15.00 for each repurchase trade collateral
tranche received from an institution other than PNC Bank (round trip).
3. PNC Bank's out-of-pocket expenses including, but not limited to,
overnight express charges, Federal Reserve wire fees and global sub-custody
services.
4. With respect to the per portfolio daily net overdrawn cash balances, a
monthly charge shall be assessed based on the average federal funds rate for
that month.
5. The minimum monthly fee shall be $1,250 for each portfolio, exclusive
of out-of-pocket expenses and transaction charges. The minimum monthly fee for
each Portfolio with respect to such Portfolio's first year of operations,
exclusive of out-of-pocket expenses, shall be waived for start-up portfolios in
accordance with the following step-in schedule:
Month Number Minimum Monthly
(from start of operations) Fee Waivers
-------------------------- ---------------
1-2 100%
3 90%
4 80%
5 70%
6 60%
7 50%
8 40%
9 30%
10 20%
11 10%
12 0%
If during the next three years, PNC Bank is removed from the Agreement
referenced above, the Fund shall pay any costs of time and material associated
with the deconversion and PNC Bank will recoup 100% of the fees waived during
the first two years.
The fee for the period from the day of the year this fee letter is entered
into until the end of that year shall be prorated according to the proportion
which such period bears to the full annual period.
If the foregoing accurately sets forth our agreement and you intend to be
legally bound thereby, please execute a copy of this letter and return it to us.
Very truly yours,
PNC BANK, NATIONAL ASSOCIATION
By:_________________________________
Title:
Accepted:
XXXXX TREASURY FUND
By:____________________________________________
Title:
