EXHIBIT 8(b)
TRANSFER AGENCY AND SERVICE AGREEMENT
between
XXXXXXX FUND, INC.
and
XXXXXXX SERVICE CORPORATION
TABLE OF CONTENTS
Page
Article 1 Terms of Appointment; Duties of the Agent ..... 3
Article 2 Fees and Expenses ............................. 6
Article 3 Representations and Warranties of the Agent ... 7
Article 4 Representations and Warranties of the Company . 8
Article 5 Indemnification ............................... 8
Article 6 Covenants of the Company and the Agent ........ 11
Article 7 Termination of Agreement ...................... 13
Article 8 Additional Series ............................. 13
Article 9 Delegation .................................... 13
Article 10 Amendment ..................................... 14
Article 11 Massachusetts Law to Apply .................... 14
Article 12 Form N-SAR .................................... 14
Article 13 Merger of Agreement ........................... 14
Article 14 Counterparts .................................. 14
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TRANSFER AGENCY AND SERVICE AGREEMENT
AGREEMENT made as of January 1, 1990, by and between XXXXXXX FUND, INC., a
Maryland corporation, having its principal office and place of business at 000
Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000 (the "Company") and XXXXXXX SERVICE
CORPORATION, a Massachusetts corporation, having its principal office and place
of business at 000 Xxxxxxx Xxxxxx, Xxxxxx, Xxxxxxxxxxxxx 00000 (the "Agent").
WHEREAS, the Company desires to appoint the Agent as the Company's
transfer agent, dividend disbursing agent and agent in connection with certain
other activities and the Agent desires to accept such appointment;
NOW, THEREFORE, in consideration of the mutual covenants herein contained,
the parties hereto agree as follows:
Article 1. Terms of Appointment; Duties of the Agent.
1.01. Subject to the terms and conditions set forth in this Agreement, the
Company hereby employs and appoints the Agent to act as, and the Agent agrees
to act as, transfer agent for the Company's authorized shares of Capital Stock,
$ .001 par value per share ("Shares"), dividend disbursing agent and agent in
connection with any accumulation, open-account or similar plans provided to the
shareholders of the Company ("Shareholders") and set out in a currently
effective prospectus ("Prospectus") or currently effective statement of
additional information ("Statement of Additional Information") of the Company,
including without limitation any periodic investment plan or periodic withdrawal
program. If the Company offers two or more series of Shares, the term "Company"
shall be deemed to apply to each series of Shares, unless the context otherwise
requires.
1.02. The Agent agrees that it will perform the following services:
(a) In accordance with procedures established from time to time by
agreement between the Company and the Agent, the Agent shall:
(i) Receive for acceptance in the manner described in the
Prospectus and the Statement of Additional Information
orders for the purchase of Shares and promptly deliver
payment and appropriate documentation therefor to the
duly authorized custodian of the Company (the
"Custodian");
(ii) Pursuant to orders for the purchase of Shares, record
the purchase of the appropriate number of Shares in the
Shareholder's account after payment is received and, if
requested by the
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Shareholder, and if the Directors of the Company have
authorized the issuance of stock certificates, issue a
certificate for the appropriate number of full Shares;
(iii) Reinvest income dividends and capital gain distributions
in additional Shares or prepare and transmit payments
for income dividends and capital gain distributions in
accordance with the terms set forth in the Prospectus
and Statement of Additional Information;
(iv) Receive for acceptance in the manner described in the
Prospectus and the Statement of Additional Information
redemption requests and redemption directions and
deliver the appropriate documentation thereof to the
Custodian;
(v) Provide an appropriate response to Shareholders with
respect to all correspondence and rejected trades;
(vi) 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;
(vii) Effect transfers of Shares by the registered owners
thereof upon receipt of appropriate instructions and
documentation;
(viii) Report abandoned property to the various states as
authorized by the Company in accordance with policies
and principles agreed upon by the Company and Agent;
(ix) Maintain records of account for and advise the Company
and its Shareholders as to the foregoing;
(x) Record by series the issuance of Shares of the Company
and maintain an accurate control book with respect to
Shares pursuant to Rule 17Ad-l0(e) under the Securities
Exchange Act of 1934. The Agent shall, for purposes of
compliance with Maryland law regarding the overissuance
of Shares and compliance with applicable blue sky laws,
on a daily basis monitor with respect to all trades and
communications sent directly to
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the Agent, and review with respect to all trades and
communications of the Company, whether sent directly to
the underwriter or Agent, the total number of Shares of
each series which are issued and outstanding and the
total number of Shares of each series which are sold in
each State;
(xi) Respond to all telephone inquiries from Shareholders or
their authorized representatives regarding the status of
Shareholder accounts; and
(xii) Respond to correspondence from Shareholders or their
authorized representatives regarding the status of
Shareholder accounts or information related to
Shareholder accounts; and
(xiii) Perform all Shareholder account maintenance updates.
(b) In addition to and neither in lieu of nor in contravention of
the services set forth in the above paragraph (a), the Agent shall: (i) perform
the customary services of a transfer agent, dividend disbursing agent and, as
relevant, agent in connection with accumulation, open-account or similar plans
(including without limitation any periodic investment plan or periodic
withdrawal program). The detailed definition, frequency, limitations and
associated costs (if any) set out in the attached fee schedule, include but are
not limited to: maintaining all Shareholder accounts, preparing Shareholder
meeting lists, mailing proxy statements and proxies, receiving and tabulating
proxies, mailing shareholder reports and prospectuses to current Shareholders,
and withholding all applicable taxes (including but not limited to all
withholding taxes imposed under the U.S. Internal Revenue Code and Treasury
regulations promulgated thereunder, and applicable state and local laws to the
extent consistent with good industry practice), preparing and filing U.S.
Treasury Department Forms 1099, Form 941 when applicable and other appropriate
forms required with respect to dividends, distributions and taxes withheld on
Shareholder accounts by federal authorities for all registered Shareholders,
preparing and mailing confirmation forms and statements of account to
Shareholders for all purchases and redemptions of Shares and other confirmable
transactions in Shareholder accounts, preparing and mailing activity statements
for Shareholders, providing Shareholder account information and providing lists
of Shareholders to states (Ohio), (ii) provide daily and monthly a written
report and access to information which will enable the Company to monitor the
total number of Shares sold
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(on a series-by-series basis, if necessary) and the aggregate public offering
price thereof in each state by the Company, added by sales in each state of the
registered Shareho1der or dealer branch office, as defined by the Company, and
such other information as may reasonably be necessary to comply with the state
securities commissions' requirements for the registration of Shares, and (iii)
if directed by the Company, (A) each confirmation of the purchase which
establishes a new account will be accompanied by a Prospectus and any amendment
or supplement thereto, and (B) a Prospectus, and any amendment or supplement
thereto, will be mailed to each Shareholder at the time a confirmation of the
first purchase by such Shareholder, subsequent to the effective date of a
Prospectus or any amendment or supplement thereto, is mailed to such
Shareholder.
(c) In addition, the Company shall (i) identify all states in which
Shares of the Company are eligible for sale, (ii) identify to the Agent in
writing those transactions and assets to be treated as exempt from blue sky
reporting to the Company for each state and (iii) approve those transactions to
be included for each state on the blue sky system prior to activation and
thereafter monitor the daily activity for each state. The responsibility of the
Agent for the Company's blue sky registration status is solely limited to the
monitoring and reporting of the transactions subject to blue sky compliance by
the Company as provided above.
(d) The Agent shall make appropriate arrangements with a banking
institution in connection with effecting timely redemptions of Shares by a check
redemption service if offered by the Company and described in its Prospectus,
Statement of Additional Information or both.
(e) The Agent shall certify to the Company in writing relative to
all required mailings and filings.
1.03. The Agent's offices, personnel and computer and other equipment
shall be adequate to perform the services contemplated by this Agreement for the
Company and for other investment companies advised or administered by Xxxxxxx,
Xxxxxxx & Xxxxx, Inc. and its affiliates. The Agent shall notify the Company in
the event that it proposes to provide such services for any other investment
company.
Article 2. Fees and Expenses.
2.01. For the performance by the Agent pursuant to this Agreement, the
Company agrees to pay the Agent an annual maintenance fee for each Shareholder
account as set out in a fee schedule agreed to by both parties in writing. Such
fees and out-of-pocket expenses and advances identified under Section 2.02
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below may be changed from time to time subject to mutual written agreement
between the Company and the Agent, as approved by a majority of the Directors
who are not "interested persons" (as defined in the Investment Company Act of
1940).
2.02. In addition to the fee paid under Section 2.0l above, the Company
agrees to reimburse the Agent for out-of-pocket expenses or advances incurred by
the Agent for the items set out in the fee schedule agreed to by both parties in
writing. In addition, any other expenses incurred by the Agent at the request or
with the consent of the Company will be reimbursed by the Company.
2.03. The Company agrees to pay all fees and reimbursable expenses
promptly, the terms, method and procedures for which are detailed on the fee
schedule agreed to by both parties in writing. Postage for mailing of dividends,
proxy statements, Company reports and other mailings to all Shareholder accounts
shall be advanced to the Agent by the Company upon request of the Agent, at
least two (2) days prior to the mailing date of such materials.
2.04. The Company may engage accounting firms or other consultants to
evaluate the fees paid by the Company and the quality of services rendered by
the Agent, and such firms or other consultants shall be provided access by the
Agent to such information as may be reasonably required in connection with such
engagement. The Agent will give due consideration and regard to the
recommendations to the Company in connection with such engagement, but shall not
be bound thereby.
Article 3. Representations and Warranties of the Agent.
The Agent represents and warrants to the Company that:
3.01. It is a corporation duly organized and existing and in good standing
under the laws of The Commonwealth of Massachusetts.
3.02. It has the leqal power and authority to carry on its businesses in
The Commonwealth of Massachusetts.
3.03. It is empowered under applicable laws and by its charter and by-laws
to enter into and perform this Agreement.
3.04. All requisite proceedings have been taken to authorize it to enter
into and perform this Agreement.
3.05. It is duly registered as a transfer agent under Section 17A of the
Securities Exchange Act of 1934, as amended.
3.06. It has and will continue to have access to the necessary facilities,
equipment and personnel to perform its duties and obligations under this
Agreement.
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Article 4. Representations and Warranties of the Company.
The Company represents and warrants to the Agent that:
4.01. It is a corporation duly organized and existing and in good standing
under the laws of Maryland.
4.02. It is empowered under applicable laws and by its Articles of
Incorporation and By-Laws to enter into and perform this Agreement.
4.03. All proceedings required by said Articles of Incorporation and
By-Laws have been taken to authorize it to enter into and perform this
Agreement.
4.04. It is an investment company registered under the Investment Company
Act of 1940, as amended.
4.05. A registration statement under the Securities Act of 1933 is
currently effective and will remain effective, and appropriate state securities
law filings have been made and will continue to be made, with respect to all
Shares of the Company being offered for sale.
Article 5. Indemnification.
5.01. To the extent that the Agent acts in good faith and without
negligence or willful misconduct, the Agent shall not be responsible for, and
the Company shall indemnify and hold the Agent harmless from and against, any
and all losses, damages, costs, charges, counsel fees, payments, expenses and
liabilities arising out of or attributable to:
(a) All actions of the Agent or its agents or subcontractors
required to be taken and correctly executed pursuant to this Agreement.
(b) The Company's lack of good faith, negligence or willful
misconduct or the breach of any representation or warranty of the Company
hereunder.
(c) The reasonable reliance on or use by the Agent or its agents or
subcontractors of information, records and documents or services which are
received or relied upon by the Agent or its agents or subcontractors and
furnished to it or performed by or on behalf of the Company.
(d) The reasonable reliance on, or the carrying out by the Agent or
its agents or subcontractors of, any written instructions or requests of the
Company.
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(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, unless such violation is the result of the Agent's negligent or willful
failure to comply with the provisions of Section 1.02(b) (ii) of this Agreement.
5.02. The Agent shall indemnify and hold the Company harmless from and
against any and all losses, damages, costs, charges, counsel fees, payments,
expenses and liabilities arising out of or attributable to the Agent's refusal
or failure to comply with the terms of this Agreement (whether as a result of
the acts or omissions of the Agent or of its agents or subcontractors) or
arising out of the lack of good faith, negligence or willful misconduct of the
Agent, or its agents or subcontractors, or arising out of the breach of any
representation or warranty of the Agent hereunder.
5.03. At any time the Agent may apply to any officer of the Company for
instructions, and may consult with outside legal counsel with respect to any
matter arising in connection with the services to be performed by the Agent
under this Agreement, and the Agent and its agents or subcontractors shall not
be liable and shall be indemnified by the Company for any action reasonably
taken or omitted by it in reliance upon such instructions or upon the opinion of
such counsel. The Agent, its agents and subcontractors shall be protected and
indemnified in acting upon any paper or document furnished by or on behalf of
the Company, 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 to the Agent or its agents or subcontractors by
machine-readable input, telex, CRT data entry or other similar means authorized
by the Company, and shall not be held to have notice of any change of authority
of any person, until receipt by the Agent of written notice thereof from the
Company. The Agent, 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 Company,
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 to the other for
any damages resulting from such failure to perform or otherwise from such
causes.
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5.05. Neither party to this Agreement shall be liable to the other party
for consequential damages under any provision of this Agreement, but each shall
be liable for general damages resulting from breach of this Agreement. For the
purposes of this Agreement, the term "general damages" shall include but shall
not be limited to:
(a) All costs of correcting errors made by the Agent or its agents
or subcontractors in Company Shareholder accounts, including
the expense of computer time, computer programming and
personnel;
(b) Amounts which the Company is liable to pay to a person (or his
representative) who has purchased or redeemed, or caused to be
repurchased, Shares at a price which is higher, in the case of
a purchase, or lower, in the case of a redemption or
repurchase, than current net asset value per Share, but only
to the extent that the price at which such Shares were
purchased, redeemed or repurchased was incorrect as a result
of either (i) one or more errors caused by the Agent or its
agents or subcontractors in processing Shareholder accounts of
the Company or (ii) the posting by the Agent of the purchase,
redemption or repurchase of Shares subsequent to the time such
purchase, redemption or repurchase should have been posted
pursuant to laws and regulations applicable to open-end
investment companies, if the delay is caused by the Agent, its
agents or subcontractors;
(c) The value of dividends and distributions which were not
credited on Shares because of the failure of the Agent or its
agents or subcontractors to timely post the purchase of such
Shares.
(d) The value of dividends and distributions which were
incorrectly credited on Shares because of the failure of the
Agent or its agents or subcontractors to timely post the
redemption or repurchase of such Shares;
(e) The value of dividends and distributions, some portion of
which was incorrectly credited, or was not credited, on Shares
because of the application by the Agent or its agents or
subcontractors of an incorrect dividend or distribution factor
or otherwise;
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(f) Penalties and interest which the Company is required to pay
because of the failure of the Agent or its agents or
subcontractors to comply with the information reporting and
withholding (including backup withholding) requirements of the
Internal Revenue Code of 1986, as amended, and applicable
Treasury regulations thereunder, applicable to Company
Shareholder accounts; and
(g) Interest in accordance with the laws of The Commonwealth of
Massachusetts on any damages from the date of the breach of
this Agreement.
5.06. In order that the indemnification provisions contained in this
Article 5 shall apply, upon the assertion of a claim or loss for which either
party may be required to indemnify the other, the party seeking indemnification
shall promptly notify the other party of such assertion or loss, 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
at its expense with the party seeking indemnification in 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.
The obligations of the parties hereto under this Article 5 shall survive
the termination of this Agreement.
Article 6. Covenants of the Company and the Agent.
6.01. The Company shall promptly furnish to the Agent the following:
(a) A certified copy of the resolution of the Board of Directors of
the Company authorizing the appointment of the Agent and the execution and
delivery of this Agreement.
(b) A copy of the Articles of Incorporation and By-Laws of the
Company and all amendments hereto.
6.02. The Agent hereby agrees to establish and maintain facilities and
procedures reasonably acceptable to the Company 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. The Agent shall at all times maintain insurance coverage which is
reasonable and customary in light of its duties hereunder and its other
obligations and activities.
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6.04. The Agent 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
(the "Act") and the Rules thereunder, the Agent agrees that all such records
prepared or maintained by the Agent relating to the services to be performed by
the Agent hereunder are the property of the Company and will be preserved,
maintained and made available in accordance with such Section and Rules, and
will be surrendered promptly to the Company, free of charge, and in accordance
with its request. Records surrendered hereunder may be in machine-readable form,
to the extent permitted by the Act and the Rules thereunder.
6.05. The Agent and the Company agree that all books, records, information
and data pertaining to the business of the other party (including the names and
addresses of Shareholders) 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.
6.06. In case of any requests or demands for the inspection of the
Shareholder records of the Company, the Agent will endeavor to notify the
Company and to secure instructions from an authorized officer of the Company as
to such inspection. The Agent reserves the right, however, to exhibit the
Shareholder records to any person whenever it is reasonably advised by its
counsel that it may be held liable for the failure to exhibit the Shareholder
records to such person.
6.07. The Agent agrees to maintain or provide for redundant facilities or
a compatible configuration and to maintain or provide for backup of the
Company's master and input files and to store such files in a secure
off-premises location so that in the event of a power failure or other
interruption of whatever cause at the location of such files the Company's
records are maintained intact and transactions can be processed at another
location.
6.08. The Agent acknowledges that the Company, as a registered investment
company under the Act, is subject to the provisions of the Act and the rules and
regulations thereunder, and that the offer and sale of the company's Shares are
subject to the provisions of federal and state laws and regulations applicable
to the offer and sale of securities. The Company acknowledges that the Agent is
not responsible for the Company's compliance with such laws and regulations. If
the Company advises the Agent that a procedure of the Agent related to the
discharge of its obligations hereunder has or may have the effect of causing the
Company to violate any of such laws or regulations, the Agent shall use its best
efforts to develop a mutually agreeable alternative procedure which does not
have such effect.
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6.09. The Agent shall promptly provide the Company with a copy of any
management letter issued by the outside auditors of the Agent on its internal
accounting controls.
Article 7. Termination of Agreement.
7.01. This Agreement may be terminated by either party upon one hundred
twenty (120) days' written notice to the other.
7.02. Should the Company exercise its right to terminate, all reasonable
out-of-pocket expenses of the Agent incurred with respect to the movement of
records and materials required by this Agreement will be borne by the Company.
Additionally, the Agent reserves the right to charge for any other reasonable
expenses associated with such termination.
Article 8. Additional Series.
8.01. In the event that the Company establishes one or more series of
Shares with respect to which it desires to have the Agent render services as
transfer agent under the terms hereof, it shall so notify the Agent in writing,
and unless the Agent objects in writing to providing such services, the term
"Company" hereunder, unless the context otherwise requires, shall be deemed to
include each such series of Shares. All recordkeeping and reporting shall be
done separately for each series. Unless the Company and Agent agree to an
amended fee schedule, the fee schedule attached hereto shall apply to each
series separately.
Article 9. Delegation.
9.01 Except as provided in Section 9.03 below, neither this Agreement nor
any rights or obligations hereunder may be delegated 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 delegatees.
9.03. The Agent may, with notice to and consent on the part of the
Company, which consent shall not be unreasonably withheld, subcontract for the
performance of certain services under this Agreement to qualified service
providers, which shall be registered as transfer agents under Section 17A of the
Securities Exchange Act of 1934 if such registration is required; provided,
however, that the Agent shall be as fully responsible to the Company for the
acts and omissions of any subcontractor as it is for its own acts and omissions.
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Article 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 Directors of each party.
Article 11. Massachusetts Law to Apply.
11.01. This Agreement shall be construed and the provisions thereof
interpreted under and in accordance with the laws of The Commonwealth of
Massachusetts.
Article 12. Form N-SAR.
12.01. The Agent shall maintain such records and provide such information
as shall enable the Company to fulfill the requirements of Form N-SAR or any
successor report which must be filed with the Securities and Exchange
Commission.
Article 13. Merger of Agreement.
13.01. This Agreement constitutes the entire agreement between the parties
hereto and supersedes any prior agreement with respect to the subject hereof
whether oral or written.
Article 14. Counterparts.
14.01. This Agreement may be executed by the parties hereto in any number
of counterparts, and all of said counterparts taken together shall be deemed to
constitute one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in their names and on their behalf under their seals by and through
their duly authorized officers, as of the day and year first above written.
ATTEST: XXXXXXX FUND, INC.
/s/ [Illegible] BY: /s/ [Illegible]
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Secretary Title: Treasurer
ATTEST: XXXXXXX SERVICE CORPORATION
/s/ [Illegible] BY: /s/ [Illegible]
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Title: President
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