1
EXHIBIT (8)(a)
May 9, 1991
Trust for Federal Securities
Bellevue Park Corporate Center
000 Xxxxxxxx Xxxxxxx, Xxxxx 000
Xxxxxxxxxx, XX 00000
Re: Trust for Federal Securities - Custodian Fees
Gentlemen:
This letter constitutes our agreement, and supersedes any prior
agreement, with respect to compensation to be paid to Provident National Bank
("Provident") under the terms of a Custodian Agreement dated June 1, 1989, as
supplemented by Addenda Nos. 1 and 2 dated as of November 1, 1990 and May 9,
1991, respectively, between you (the "Company") and Provident, with respect of
the FedFund, T-Fund, FedCash, T-Cash, Federal Trust Fund, Treasury Trust Fund,
Short Government Fund, Intermediate Government Fund and Long Government Fund
portfolios of the Company (the "Funds"). Pursuant to Paragraph 21 of that
Agreement, and in consideration of the services to be provided to you, you will
pay Provident the following for each Fund:
1. An annual custody fee of $.25 for each $1,000 of the Fund's first $250
million average daily gross assets, $.20 for each $1,000 on the next $250
million of average daily gross assets, $.15 for each $1,000 on the next $500
million of average daily gross assets, $.09 for each $1,000 on the next $2
billion of average daily gross assets, and $.08 for each $1,000 on average daily
gross assets over $3 billion, which custody fee shall be calculated daily and
paid monthly;
2. For all fixed income and equity securities, which do not include "Money
Market" obligations, a transaction charge of $15.00 for each purchase, sale or
delivery of such security upon its maturity date;
3. For each interest collection or claim item, a fee of $40;
4. Provident's incremental costs in providing foreign custody services for
foreign denominated and held securities; and
2
Trust for Federal Securities
May 9, 1991
Page 2
5. Provident's out-of-pocket expenses, including but not limited to
postage, telephone, telex, Federal Express and Federal Reserve wire fees, on
behalf of the Company.
The fee attributable to each Fund shall be the several (and not joint
or joint and several) obligation of each such Fund. The fee for the period from
the day of the year this agreement is entered into until the end of that year
shall be pro-rated 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,
PROVIDENT NATIONAL BANK
By:
-------------------
Title: Vice President
ACCEPTED: TRUST FOR FEDERAL SECURITIES
By:
------------------------------
Title: Vice President & Treasurer
Date: May 9, 1991
