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TRANSFER AGENCY AND SERVICE AGREEMENT
between the
ADVISORONE Funds
and
GEMINI FUND SERVICES, LLC
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INDEX
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1. TERMS OF APPOINTMENT; DUTIES OF GFS .......................................3
2. FEES AND EXPENSES..........................................................5
3. REPRESENTATIONS AND WARRANTIES OF GFS .....................................5
4. REPRESENTATIONS AND WARRANTIES OF THE TRUST................................6
5. INDEMNIFICATION............................................................6
6. COVENANTS OF THE TRUST AND GFS ............................................8
7. TERMINATION OF AGREEMENT...................................................9
8. additional information.....................................................9
9. ASSIGNMENT.................................................................9
10. AMENDMENT................................................................10
11. NEW YORK LAWS TO APPLY...................................................10
12. MERGER OF AGREEMENT......................................................10
13. NOTICES..................................................................10
(Schedule a) fund listing.....................................................12
(Schedule b) FEE SCHEDULE....................................................13
(A) ACCOUNT MAINTENANCE CHARGE:...............................................13
(B) TRANSACTION FEES:.........................................................13
(C) 24 HOUR AUTOMATED VOICE RESPONSE:.........................................13
FEE INCREASES.................................................................13
(D) XXX PLAN FEES:............................................................14
(E) EXPENSES:.................................................................14
(F) SPECIAL REPORTS:..........................................................15
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TRANSFER AGENCY AND SERVICE AGREEMENT
AGREEMENT made the 23rd day of June 2003, by and between the AdvisorOne Funds, a
Delaware Business Trust, having its principal office and place of business at
0000 Xxxxx 000xx Xxxxxx, Xxxxx, Xxxxxxxx 00000 (the "Trust"), and Gemini Fund
Services, LLC., a Nebraska limited liability company having its principal office
and place of business at 0000 Xxxxx 000xx Xxxxxx, Xxxxx, Xxxxxxxx 00000 ("GFS").
WHEREAS, the Trust(1), which consists of various series (collectively
referred to as the "Funds") of open-end management investment companies, and is
registered with the United States Securities and Exchange Commission under the
Investment Company Act of 1940, as amended (the "1940 Act"); and
WHEREAS, the Trust offers shares in the series (each such series, together
with all other series subsequently established by the Trust and made subject to
this Agreement in accordance herewith, being herein referred to as a "Fund", and
collectively as the "Funds") and the Trust offers shares of various classes of
each Fund (each such class together with all other classes subsequently
established by the Trust in a Fund being herein referred to as a "Class," and
collectively as the "Classes") listed in Schedule A; and
WHEREAS, the Trust on behalf of the Funds desires to appoint GFS as its
transfer agent, dividend disbursing agent and agent in connection with certain
other activities, and GFS desires to accept such appointment;
NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained, the Trust and GFS hereto agree as follows:
1. TERMS OF APPOINTMENT; DUTIES OF GEMINI FUND SERVICES, LLC.
1.01 Subject to the terms and conditions set forth in this agreement, the
Trust, on behalf of the Funds, hereby employs and appoints GFS to act as, and
GFS agrees to act as its transfer agent for the Fund's authorized and issued
shares of its common stock, ("Shares"), dividend disbursing agent and agent in
connection with any accumulation, open-account or similar plans provided to the
shareholders of the fund ("Shareholders") set out in the currently effective
prospectus and statement of additional information ("prospectus") of the Trust.
1.02 GFS agrees that it will perform the following services:
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(1) The term "Trust" shall refer to the AdvisorOne Funds , and each series of
the AdvisorOne Funds that is approved by the Board of Trustees of the AdvisorOne
Funds for inclusion under the terms of this agreement, and each series that is
so approved shall be subject to the terms of this Agreement without the need for
an amendment of or addition to this Agreement.
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(a) In accordance with procedures established from time to time by
agreement between the Trust and GFS , GFS shall:
I. Receive for acceptance, orders for the purchase of Shares, and promptly
deliver payment and appropriate documentation therefore to the Custodian
of the Trust authorized by the Board of Trustees of the Trust (the
"Custodian");
II. Pursuant to purchase orders, issue the appropriate number of Shares and
hold such Shares in the appropriate Shareholder account;
III. Receive for acceptance redemption requests and redemption directions and
deliver the appropriate documentation therefore to the Custodian;
IV. At the appropriate time as and when it receives monies paid to it by the
Custodian with respect to any redemption, pay over or cause to be paid
over in the appropriate manner such monies as instructed by the redeeming
Shareholders;
V. Effect transfers of Shares by the registered owners thereof upon receipt
of appropriate instructions;
VI. Prepare and transmit payments for dividends and distributions declared by
the Trust;
VII. Maintain records of account for and advise the Trust and its Shareholders
as to the foregoing; and
VIII. Record the issuance of shares of each Fund and maintain pursuant to SEC
Rule 17Ad-10(e) a record of the total number of shares of each Fund which
are authorized, based upon data provided to it by each Fund, and issued
and outstanding. GFS shall also provide each Fund on a regular basis with
the total number of shares which are authorized and issued and outstanding
and shall have no obligation, when recording the issuance of shares, to
monitor the issuance of such shares or to take cognizance of any laws
relating to the issue or sale of such shares, which functions shall be the
sole responsibility of each Fund.
(b) In addition to and not in lieu of the services set forth in the
above paragraph (a), GFS shall perform all of the customary services
of a transfer agent, dividend disbursing agent, including but not
limited to: maintaining all Shareholder accounts, preparing
Shareholder meeting lists, mailing proxies, receiving and tabulating
proxies, mailing Shareholder reports and prospectuses to current
Shareholders, withholding taxes on U.S. resident and non-resident
alien accounts, preparing and filing U.S. Treasury Department Forms
1099 and other appropriate forms required with respect to dividends
and distributions by federal authorities for all Shareholders,
preparing and mailing confirmation forms and statements of account
to Shareholders for all purchases redemption's of Shares and other
confirmable transactions in Shareholder accounts, preparing and
mailing activity statements for
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Shareholders, and providing Shareholder account information and (ii)
provide a system and reports which will enable each Fund to monitor
the total number of Shares sold in each State.
(c) In addition, the Trust shall (i) identify to GFS in writing those
transactions and shares to be treated as exempt from blue sky
reporting for each State and (ii) verify the establishment of such
transactions for each state on the system prior to activation and
thereafter monitor the daily activity for each State as provided by
GFS. The responsibility of GFS for the Trust's blue sky state
registration status is solely limited to the initial establishment
of transactions subject to blue sky compliance by the Trust and the
reporting of such transactions to the Trust as provided above.
Procedures applicable to certain of these services may be established from
time to time by agreement between the Trust and GFS .
2. FEES AND EXPENSES.
2.01 For performance by GFS pursuant to this Agreement, the Trust agrees
to pay GFS an annual maintenance fee for each Shareholder account and
transaction fees for each portfolio or class of shares serviced under this
Agreement (See Schedule B) as set out in the fee schedule attached hereto. Such
fees and out-of pocket expenses and advances identified under Section 2.02 below
may be changed from time to time subject to mutual written agreement between the
Trust and GFS.
2.02 In addition to the fee paid under Section 2.01 above, the Trust
agrees to reimburse GFS for out-of-pocket expenses or advances incurred by GFS
for the items set out in the fee schedule attached hereto. In addition, any
other expenses incurred by GFS at the request or with the consent of the Trust,
will be reimbursed by the Trust.
2.03 The Trust agrees to pay all fees and reimbursable expenses within
five days following the receipt of the respective billing notice. Postage for
mailing of dividends, proxies, Trust reports and other mailings to all
shareholder accounts shall be advanced to GFS by the Trust at least seven (7)
days prior to the mailing date of such materials.
3. REPRESENTATIONS AND WARRANTIES OF GEMINI FUND SERVICES, LLC.
GFS represents and warrants to the Trust that:
3.01 It is empowered under applicable laws and by its charter and by-laws
to enter into and perform this Agreement.
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3.02 All requisite corporate proceedings have been taken to authorize it
to enter into and perform this Agreement.
3.03 It has and will continue to have access to the necessary facilities,
equipment and personnel to perform its duties and obligations under this
Agreement.
3.04 GFS is duly registered as a transfer agent under the Securities Act
of 1934 and shall continue to be registered throughout the remainder of this
Agreement.
4. REPRESENTATIONS AND WARRANTIES OF THE TRUST.
The Trust represents and warrants to GFS that;
4.01 It is empowered under applicable laws and by its Certificate of
Trust, By-Laws, and Declaration of Trust to enter into and perform this
Agreement.
4.02 All proceedings required by said Certificate of Trust, By-Laws, and
Declaration of Trust have been taken to authorize it to enter into and perform
this Agreement.
4.03 It is an open-end management investment company registered under the
Investment Company Act of 1940.
4.04 A registration statement under the Securities Act of 1933 is
currently or will become effective and will remain effective, and appropriate
state securities law filings as required, have been or will be made and will
continue to be made, with respect to all Shares of the Trust being offered for
sale.
5. INDEMNIFICATION.
5.01 GFS shall not be responsible for, and the Trust shall indemnify and
hold GFS harmless from and against, any and all losses, damages, costs, charges,
counsel fees, payments, expenses and liability arising out of or attributable
to:
(a) All actions of GFS or its agents or subcontractors required to be taken
pursuant to this Agreement, provided that such actions are taken in good
faith and without gross negligence or willful misconduct.
(b) The Trust's refusal or failure to comply with the terms of this Agreement,
or which arise out of the Trust's lack good faith, gross negligence or
willful misconduct or which arise out of the breach of any representation
or warranty of the Trust hereunder.
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(c) The reliance on or use by GFS or its agents or subcontractors of
information, records and documents which (i) are received by GFS or its
agents or subcontractors and furnished to it by or on behalf of the Trust,
and (ii) have been prepared and/or maintained by the Trust or any other
person or firm on behalf of the Trust.
(d) The reliance on, or the carrying out by GFS or its agents or
subcontractors of any instructions or requests of the Trust.
(e) The offer or sale of Shares in violation of any requirement under the
federal securities laws or regulations or the securities laws or
regulations of any state that such Shares be registered in such state or
in violation of any stop order or other determination or ruling by any
federal agency or any state with respect to the offer or sale of such
Shares in such state.
5.02 GFS shall indemnify and hold the Trust harmless from and against any
and all losses, damages, costs, charges, counsel fees, payments, expenses and
liability arising out of or attributable to any action or failure or omission to
act by GFS as a result of GFS' s lack of good faith, gross negligence or willful
misconduct.
5.03 At any time GFS may apply to any officer of the Trust for
instructions, and may consult with legal counsel with respect to any matter
arising in connection with the services to be performed by GFS under this
Agreement, and GFS and its agents or subcontractors shall not be liable and
shall be indemnified by the Trust for any action taken or omitted by it in
reliance upon such instructions or upon the opinion of such counsel. GFS, its
agents and subcontractors shall be protected and indemnified in acting upon any
paper or document furnished by or on behalf of the Trust, reasonably believed to
be genuine and to have been signed by the proper person or persons, or upon any
instruction, information, data, records or documents provided GFS or its agents
or subcontractors by machine readable input, telex, CRT data entry or other
similar means authorized by the Trust, and shall not be held to have notice of
any change of authority of any person, until receipt of written notice thereof
from the Trust. GFS, its agents and subcontractors shall also be protected and
indemnified in recognizing stock certificates which are reasonably believed to
bear the proper manual or facsimile signatures of the officers of the Trust, and
the proper countersignature of any former transfer agent or registrar, or of a
co-transfer agent or co-registrar.
5.04 In the event either party is unable to perform its obligations under
the terms of this Agreement because of acts of God, strikes, equipment or
transmission failure or damage reasonably beyond its control, or other causes
reasonably beyond its control, such party shall not be liable for damages to the
other for any damages resulting from such failure to perform or otherwise from
such causes.
5.05 Neither party to this Agreement shall be liable to the other party
for consequential damages under any provision of this Agreement or for any act
or failure to act hereunder.
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5.06 In order that the indemnification provisions contained in this
Article 5 shall apply, upon the assertion of a claim for which either party may
be required to indemnify the other, the party of seeking indemnification shall
promptly notify the other party of such assertion, and shall keep the other
party advised with respect to all developments concerning such claim. The party
who may be required to indemnify shall have the option to participate with the
party seeking indemnification the defense of such claim. The party seeking
indemnification shall in no case confess any claim or make any compromise in any
case in which the other party may be required to indemnify it except with the
other party's prior written consent.
6. COVENANTS OF THE TRUST AND GEMINI FUND SERVICES, LLC.
6.01 The Trust shall promptly furnish to GFS a certified copy of the
resolution of the Board of Trustees of the Trust authorizing the appointment of
GFS and the execution and delivery of this Agreement.
6.02 GFS hereby agrees to establish and maintain facilities and procedures
reasonably acceptable to the Trust for safekeeping of stock certificates, check
forms and facsimile signature imprinting devices, if any; and for the
preparation or use, and for keeping account of, such certificates, forms and
devices.
6.03 GFS shall keep records relating to the services to be performed
hereunder, in the form and manner as it may deem advisable. To the extent
required by Section 31 of the Investment Company Act of 1940, as amended, and
the Rules thereunder, GFS agrees that all such records prepared or maintained by
GFS relating to the services to be performed by GFS hereunder are the property
of the Trust and will be preserved, maintained and made available in accordance
with such Section and Rules, and will be surrendered promptly to the Trust on
and in accordance with its request.
6.04 GFS and the Trust agree that all books, records, information and data
pertaining to the business of the other party which are exchanged or received
pursuant to the negotiation or the carrying out of this Agreement shall remain
confidential, and shall not be voluntarily disclosed to any other person, except
as may be required by law.
6.05 In case of any requests or demands for the inspection of the
Shareholder records of the Trust, GFS will endeavor to notify the Trust and to
secure instructions from an authorized officer of the Trust as to such
inspection. GFS reserves the right, however, to exhibit the Shareholder records
to any person whenever it is advised by its counsel that it may be held liable
for the failure to exhibit the Shareholder records to such person, and shall
promptly notify the Trust of any unusual request to inspect or copy the
shareholder records of the Trust or the receipt of any other unusual request to
inspect, copy or produce the records of the Trust.
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7. TERMINATION OF AGREEMENT.
7.01 This Agreement shall become effective as of the date hereof. Upon
effectiveness of this Agreement, is shall supersede all previous agreements
between the parties hereto covering the subject matter hereof insofar as such
Agreement may have been deemed to relate to the Trust or any of the Funds.
7.02 This Agreement shall remain in effect for a period of three (3) years
from the date of its effectiveness and shall continue in effect for successive
twelve-month periods; provided, that a continuance is specifically approved at
least annually after the initial period by the Board or a vote of a majority of
the outstanding voting securities of the Fund.
7.03 This Agreement may be terminated with respect to the Trust or any of
the Funds at anytime (i) by the Board on 90 days written notice to GFS or (ii)
by GFS on 90 days' written notice to the Fund.
7.04 The obligations of Sections 3 and 4 shall survive any termination of
this Agreement.
7.05 Should any of the Funds exercise its right to terminate, all
out-of-pocket expenses associated with the movement of records and material will
be borne by said Fund(s). Additionally, GFS reserves the right to charge for any
other reasonable expenses associated with such termination.
8. ADDITIONAL FUNDS AND CLASSES.
8.01 In the event that the Trust establishes one or more series of Shares
or one or more classes of Shares after the effectiveness of this agreement, such
series of Shares or classes of Shares, as is the case may be, shall becomes
Funds and Classes under this Agreement.
9. ASSIGNMENT.
9.01 Neither this Agreement nor any rights or obligations hereunder may be
assigned by either party without the written consent of the other party.
9.02 This Agreement shall inure to the benefit of and be binding upon the
parties and their respective permitted successors and assigns.
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10. AMENDMENT.
10.01 This Agreement may be amended or modified by a written agreement
executed by both parties and authorized or approved by a resolution of the Board
of Trustees of the Trust.
11. NEW YORK LAWS TO APPLY.
11.01 The laws of the state of New York shall govern this agreement
without giving effect to the principles of conflict of laws. Any controversy or
claim arising out of, or related to, this Agreement, its termination or the
breach thereof, shall be settled by binding arbitration by three arbitrators (or
by fewer, if the parties subsequently agree thereto) in the City of New York,
New York, in accordance with the rules then obtaining of the American
Arbitration Association, and the arbitrators' decision shall be binding and
final, and judgment upon the award rendered may be entered in any court having
jurisdiction thereof. The provisions of this Agreement shall be construed and
interpreted in accordance with the laws of the State of New York as at the time
in effect and the applicable provisions of the 1940 Act. To the extent that the
applicable law of the State of New York, or any of the provisions herein,
conflict with the applicable provisions of the 1940 Act, the latter shall
control.
12. MERGER OF AGREEMENT.
12.01 This Agreement constitutes the entire agreement between the parties
hereto and supersedes any prior agreement with respect to the subject matter
hereof whether oral or written.
13. NOTICES.
All notices and other communications hereunder shall be in writing, shall
be deemed to have been given when received or when sent by telex or facsimile,
and shall be given to the following addresses (or such other addresses as to
which notice is given):
To the Trust: To GFS:
Xxxxx Xxxxxxx Xxxxx X. Xxxxxx
Secretary President
0000 000xx Xxxxxx 000 Xxxxx Xxxxxxx, Xxxxx 000
Xxxxx, XX 00000 Xxxxxxxxx, XX 00000
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year first above written.
ADVISORONE FUNDS GEMINI FUND SERVICES, LLC.
By:___________________________ By:__________________________
W. Xxxxxxx Xxxxxx, President Xxxxx X. Xxxxxx, President
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SCHEDULE A
FUND LISTING
Xxxxxxx Fund
Clermont Fund
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SCHEDULE B
TRANSFER AGENCY AND SHAREHOLDER SERVICE FEE SCHEDULE
For the services rendered by GFS in its capacity as transfer agent, each
Fund approved by the Board of Trustees of the Trust for inclusion hereunder
shall pay GFS, within ten (10) days after receipt of an invoice from GFS at the
beginning of each month, a fee, calculated as a combination of account
maintenance charges plus transaction charges as follows:
ACCOUNT MAINTENANCE FEES
The greater of (no prorating for partial months):
(1) Minimum maintenance charge per portfolio/class $2,000.00/ month
OR,
(2) Based upon the total of all open/closed accounts (1) per portfolio/class
upon the following annual rates (billed monthly):
Fund Type:
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Dividend calculated and
paid annually, semi-annually, quarterly.............$14.00 per account
Dividend calculated and paid monthly................$16.00 per account
Dividend accrued daily and paid monthly.............$18.00 per account
All Closed accounts will be invoiced $2.00 per account on an annual basis.(2)
(1) All accounts closed during a month will be considered as open accounts for
billing purposes in the month the account is closed.
(2) Closed accounts remain on the shareholder files until all 1099's and
5498's have been distributed to the shareholders and send via mag-media to
the IRS.
TRANSACTION FEES
New account set-up ..................................................$ 5.00 each
Retirement account set-up............................................$10.00 each
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24 HOUR AUTOMATED VOICE RESPONSE:
Initial set-up (one-time) charge per portfolio - $750.00
Monthly maintenance charge per portfolio - $50.00
On each annual anniversary date of this Agreement, the fees enumerated above may
be increased by the change in the Consumer Price Index for the Northeast region
(CPI) for the twelve month period ending with the month preceding such annual
anniversary date. Any CPI increases not charged in any given year may be
included in prospective CPI fee increases in future years. For the first year of
this Agreement, fees will be adjusted to include CPI increases for the following
years: 2000, 2001, 2002, and 2003.
XXX PLAN FEES
The following fees will be charged directly to the shareholder account:
Annual maintenance fee ............................... $15.00 /account *
Incoming transfer from prior custodian ............... $12.00
Distribution to a participant ........................ $15.00
Refund of excess contribution ........................ $15.00
Transfer to successor custodian ...................... $15.00
Automatic periodic distributions .................... $15.00/year per account
* Includes Bank Custody Fee.
OUT OF POCKET EXPENSES
The Fund shall reimburse GFS for any out-of-pocket expenses, exclusive of
salaries, advanced by GFS in connection with but not limited to the costs for
printing fund documents, (i.e. printing of confirmation forms, shareholder
statements, redemption/dividend checks, envelopes, financial statements, proxy
statement, fund prospectus, etc.) proxy solicitation and mailing expenses,
travel requested by the Fund, telephone toll charges, 800-line costs and fees,
facsimile and data transmission costs, stationery and supplies (related to Fund
records), record storage, postage (plus a $0.085 service charge for all
mailings), pro-rata portion of annual SAS-70 audit letter, telex and
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courier charges incurred in connection with the performance of its duties
hereunder. GFS shall provide the Fund with a monthly invoice of such expenses
and the Fund shall reimburse GFS within fifteen (15) days after receipt thereof.
SPECIAL REPORTS
All reports and/or analyses requested by the Fund that are not included in
the fee schedule, shall be subject to an additional charge, agreed upon in
advance, based upon the following rates:
Labor:
Senior staff - $150.00/hr.
Junior staff - $ 75.00
Computer time - $45.00/hr.
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