AMENDMENT
To Transfer Agency and Service Agreement
Between American Skandia Advisor Funds, Inc.
and State Street Bank and Trust Company
1. General Background. In accordance with the Amendment provision in
Section 13 of the Transfer Agency and Service Agreement between American Skandia
Advisor Funds, Inc. (the "Fund") and State Street Bank and Trust Company (the
"Bank") dated July, 1997 (the "Agreement"), the Fund desires to amend the
Agreement to include processing procedures for certain plans of defined
contribution plans qualified under Section 401(a) and 401(k) of the Internal
Revenue Code of 1986, as amended ("Qualified Plan(s)"); with Delaware Charter
Guarantee and Trust ("DCG") or other third party administrators providing plan
administration and record keeping and PFPC providing fund accounting and custody
services.
1.1 All defined terms and definitions in the Agreement shall be the same in
this amendment (the "1998 Amendment") except as specifically revised by the 1998
Amendment.
2. Qualified Plans Processing.
2.1 The Fund intends to make available to certain of its customers, a
Qualified Plan program (the "Program") pursuant to which the customers
("Employers") may adopt the Qualified Plans for benefit of the individual
Qualified Plan participants (the "Plan Participants").
2.2 The Qualified Plans shall establish Shareholder accounts in their names
and the Bank shall treat such Shareholder accounts as omnibus accounts.
2.3 The Bank shall maintain omnibus accounts on its records in the name of
DCG or other third party administrator as the Trustee for the benefit of the
Qualified Plan.
2.4 The Bank shall not be deemed a record-keeper for the Qualified Plans
and shall perform all services hereunder as transfer agent for the Funds.
3. Amendment.
3.1 The parties hereby amend the Agreement to include Qualified Plan
processing procedures set forth in the attached Schedule A with respect to
Qualified Plans for which DCG serves as third party administrator which may be
amended by the parties from time to time.
3.2 The parties may add additional Schedules to this Amendment as may be
agreed upon from time to time to set forth procedures applicable with respect to
third party administrators other than DCG.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed in their names and on their behalf by and through their duly authorized
officers, as of this day of __________, 1998.
STATE STREET BANK AND TRUST AMERICAN SKANDIA ADVISOR FUNDS, COMPANY
INC.
By: By:
Executive Vice President
SCHEDULE A
DCG Administered Qualified Plans
Processing Procedures
Plan Establishment
The Fund notifies the Bank of new Qualified Plans to be serviced by DCG.
The Fund forwards account application to the Bank and requests the Bank to
provide the Fund and DCG with the account number, dealer #, branch # and rep #
assigned within 24 hours. This information is faxed to Xxxxx X'Xxxxxx at the
Fund (000) 000-0000 and Xxxx Xxxxxxx at DCG (000) 000-0000.
For existing Qualified Plans DCG forwards to the Bank a breakdown of how
initial funding coming from the Qualified Plan is to be invested.
Transmission Timeframes, Contingency Procedures and Processing
Listed below are target timeframes that the Bank, the Fund and DCG have
agreed upon as standard operating procedures (all days are business days and
times are Eastern Standard Time).
Day 1
2:00 PM DCG's deadline for receiving trades/cash from Plan Participants and Employers
5:00 PM The Bank's deadline for receiving faxes from DCG for manual trades (contingency - below)
6-8:00 PM PFPC transmits price information to DCG
8:00 PM The Bank's deadline for receiving trade transmission from DCG. (A blank file will be received if no
transactions for that day)
Day 2
6:00 AM The Bank transmits outbound confirmation and position refresher files to DCG
12:00 PM DCG initiates one wire to the Bank for purchases from Day 1
12:00 PM The Bank initiates one wire to DCG for redemptions from Day 1
Day 3
6:00 AM The Bank transmits settlement activity file for purchases from Day 1
File Transmission
Any file that is received by the Bank in good order prior to 8:00 PM will
be processed with that day's trade date.
SCHEDULE A
(continued)
DCG Administered Qualified Plans
Processing Procedures
If for any reason, an exchange transaction is rejected, the Bank will
reject both the "to" and the "from" sides of the transaction. For other types of
transactions, if an error is detected within the detail of a file only the
specific transaction will be rejected, and all other trades will be processed.
If an error is detected with the trailer record, the Bank will reject the entire
file. Reasons for rejecting specific transactions include an invalid fund,
representative (broker), branch, dealer or account number or insufficient funds.
Contingency to Transmissions
DCG may submit manual trades to the Bank via fax. All faxes received by the
Bank in good order before 5:00 PM will be processed as of that day's trade date
and will be included in the Bank' next day confirmation file. If a faxed
transaction is entered incorrectly the Bank will reverse the errant transaction
and re-enter it correctly with the original trade date.
Reconciliation
Each morning DCG will reconcile the confirmation file from the Bank. All
discrepancies will be discussed and resolved by DCG and the Bank.
