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Exhibit 2.k.(v)
S&C Draft of June 6, 1999
________________________________________________________________________________
FUND EXPENSE AGREEMENT
Among
XXXXXXX, XXXXX & CO.,
THE CHASE MANHATTAN BANK,
for Itself and Its Affiliate
and
AMDOCS AUTOMATIC COMMON EXCHANGE SECURITY TRUST
________________
Dated as of [Pricing Date]
________________
________________________________________________________________________________
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TABLE OF CONTENTS
Page
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ARTICLE I
DEFINITIONS; INTERPRETATION
Section 1.1. Defined Terms............................................... 1
Section 1.2. Interpretation.............................................. 2
ARTICLE II
PAYMENTS BY XXXXXXX XXXXX
Section 2.1. Agreement to Pay Up-Front Fees and Expenses................. 3
Section 2.2. Agreement to Pay Additional Expenses........................ 3
Section 2.3. Condition to Payments....................................... 3
ARTICLE III
CERTAIN AGREEMENTS OF THE SERVICE PROVIDER
Section 3.1. Statements and Reports...................................... 4
Section 3.2. Trust Termination; Refund of Unused Expense Funds........... 4
Section 3.3. Termination of Administration Agreement..................... 4
Section 3.4. Amendments.................................................. 5
Section 3.5. Payment to ChaseMellon Shareholder Services, L.L.C. ........ 5
ARTICLE IV
MISCELLANEOUS
Section 4.1. Term of Contract............................................ 5
Section 4.2. No Assumption of Liability.................................. 5
Section 4.3. Notice...................................................... 5
Section 4.4. Governing Law; Severability................................. 6
Section 4.5. Entire Agreement............................................ 6
Section 4.6. Amendments; Waivers......................................... 6
Section 4.7. Non-Assignability........................................... 6
Section 4.8. No Third Party Rights; Successors and Assigns............... 6
Section 4.9. Counterparts................................................ 6
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FUND EXPENSE AGREEMENT
FUND EXPENSE AGREEMENT, dated as of [Pricing Date], among Xxxxxxx, Sachs &
Co. ("Xxxxxxx Xxxxx"), The Chase Manhattan Bank (the "Service Provider"), for
itself in its capacities as Administrator, Custodian and Collateral Agent and
for its affiliate, ChaseMellon Shareholder Services, L.L.C., in its capacity as
Paying Agent for Amdocs Automatic Common Exchange Security Trust, a trust
organized under the laws of the State of New York under and by virtue of an
Amended and Restated Trust Agreement, dated as of [Pricing Date] (such trust
and the trustees thereof acting in their capacity as such being referred to in
this Agreement as the "Trust"), and the Trust.
WITNESSETH:
WHEREAS, the Trust is a trust organized under the laws of the State of New
York under and by virtue of the Amended and Restated Trust Agreement, dated as
of [Pricing Date] (the "Trust Agreement"); and
WHEREAS, Xxxxxxx Xxxxx desires to make provision for the payment of
certain initial and on-going expenses of the Trust;
NOW, THEREFORE, the parties to this Agreement, intending to be bound,
agree as follows:
ARTICLE I
DEFINITIONS; INTERPRETATION
Section 1.1. Defined Terms.
(a) Capitalized terms used and not otherwise defined in this Agreement
have the respective meanings specified in the Trust Agreement.
(b) As used in this Agreement, the following terms have the following
meanings:
"Additional Expense" means the Ordinary Expense the incurrence of
which will require the Service Provider to provide the Additional Expense
Notice pursuant to Section 2.2(a) and any Ordinary Expense incurred
thereafter.
"Additional Expense Notice" has the meaning specified in Section
2.2(a).
"Agreement" means this Fund Expense and Indemnity Agreement.
"Xxxxxxx Sachs" has the meaning specified in the preamble to the
Agreement.
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"Ordinary Expense" of the Trust means any expense of the Trust other
than any expense of the Trust arising under Section 3.4 of the
Administration Agreement, Section 3.5 or 3.6 of the Custodian Agreement,
Section 5.4(b) of the Paying Agent Agreement or Section 7.6 of the Trust
Agreement.
"Service Provider" has the meaning specified in the preamble to this
Agreement.
"Trust" has the meaning specified in the preamble to this Agreement.
"Trust Agreement" has the meaning specified in the recitals to this
Agreement.
"Up-Front Fee Amount" means the amount set forth as such on Schedule
I hereto payable as a one-time payment to the Service Provider in respect
of its services, as Administrator, Custodian and Collateral Agent, and
those of ChaseMellon Shareholder Services, L.L.C., as Paying Agent, for the
entire term of the Trust.
"Up-Front Expense Amount" means the amount set forth as such on
Schedule I hereto payable as a one-time payment to the Service Provider in
respect of Ordinary Expenses anticipated to be incurred by the
Administrator on behalf of the Trust, pursuant to the Administration
Agreement, during the term of the Trust.
Section 1.2. Interpretation.
(a) When a reference is made in this Agreement to Articles, Sections,
Exhibits or Schedules, such reference is to Articles or Sections of, or Exhibits
or Schedules to, this Agreement unless otherwise indicated.
(b) The table of contents and headings contained in this Agreement are for
reference purposes only and are not part of this Agreement, and shall not be
deemed to limit or otherwise affect any of the provisions of this Agreement.
(c) Whenever the words "include", "includes" or "including" are used in
this Agreement, they shall be deemed to be followed by the words "without
limitation".
(d) Any reference to any statute, regulation or agreement is a reference
to such statute, regulation or agreement as supplemented or amended from time
to time.
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ARTICLE II
PAYMENTS BY XXXXXXX XXXXX
Section 2.1. Agreement to Pay Up-Front Fees and Expenses. Xxxxxxx Sachs
agrees to pay or cause to be paid to the Service Provider in Federal
(immediately available) funds at the First Time of Delivery the Up-Front Fee
Amount and the Up-Front Expense Amount.
Section 2.2. Agreement to Pay Additional Expenses.
(a) Before incurring on behalf of the Trust any Ordinary Expense that,
together with all prior Ordinary Expenses incurred by the Administrator on
behalf of the Trust, would cause the aggregate amount of Ordinary Expenses of
the Trust to exceed the Up-Front Expense Amount, the Administrator shall provide
to Xxxxxxx Xxxxx (i) prompt written notice (the "Additional Expense Notice")
to the effect that the aggregate amount of Ordinary Expenses of the Trust will
exceed the Up-Front Expense Amount, and (ii)an accounting, in such detail as
shall be reasonably acceptable to Xxxxxxx Sachs, of all Ordinary Expenses
incurred on behalf of the Trust through the date of the Additional Expense
Notice.
(b) From and after the date of the Additional Expense Notice, the Service
Provider agrees that it will not, without the prior written consent of Xxxxxxx
Xxxxx, incur on behalf of the Trust (i) any single expense in excess of $1,000
or (ii) in any calendar period, expenses aggregating in excess of $3,000.
Subject to the foregoing, the Service Provider shall give notice to Xxxxxxx
Sachs in writing promptly after incurring any Additional Expense. Such notice
shall be accompanied by any demand, xxxx, invoice or other similar document in
respect of such Additional Expense.
(c) Subject to the first sentence of Section 2.2(b), Xxxxxxx Sachs agrees
to pay to the Service Provider from time to time the amount of any Additional
Expense. Xxxxxxx Xxxxx shall pay any such Additional Expense in Federal
(immediately available) funds by the later of (i) five Business Days after the
receipt by Xxxxxxx Sachs from the Service Provider of notice of the incurrence
of such Additional Expense, or (ii) the due date for the payment of such
Additional Expense.
(d) Xxxxxxx Xxxxx may contest in good faith the reasonableness of any
Additional Expense and the parties shall attempt in good faith to resolve
amicably the disagreement; provided that if the parties cannot resolve the
dispute by the due date specified in Section 2.2(c) with respect to such
Additional Expense, then subject to the first sentence of Section 2.2(b),
Xxxxxxx Sachs shall pay the amount of such Additional Expense as provided in
Section 2.2(c) subject to later adjustment and credit if such dispute is
resolved in favor of Xxxxxxx Xxxxx.
Section 2.3. Condition to Payments. Xxxxxxx Sachs' obligations under
Sections 2.1 and 2.2 shall be subject to the condition that the Securities that
are
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deliverable under the Underwriting Agreement at the First Time of Delivery
shall have been issued and paid for at the First Time of Delivery.
ARTICLE III
CERTAIN AGREEMENTS OF THE SERVICE PROVIDER
Section 3.1. Statements and Reports.
(a) The Service Provider shall
(i) collect and safekeep all demands, bills, invoices or other written
communications received from third parties in connection with any Ordinary
Expenses and Additional Expenses; and
(ii) prepare and maintain adequate books and records showing all
receipts and disbursements of funds in connection therewith.
(b) Xxxxxxx Xxxxx shall have the right to inspect and to copy, at its
expense, all such documents, books and records at all reasonable times and from
time to time during the term of this Agreement.
Section 3.2. Trust Termination; Refund of Unused Expense Funds. In
consideration of the agreements of Xxxxxxx Sachs in this Agreement:
(a) if, at the termination of the Trust in accordance with Section 8.3
of the Trust Agreement, the aggregate amount of Ordinary Expenses incurred
by the Service Provider on behalf of the Trust through the date of
termination shall be less than the Up-Front Expense Amount, the Service
Provider shall, promptly following the date of such termination, pay to
Xxxxxxx Xxxxx in Federal (immediately available) funds the amount of such
excess; and
(b) the Trust shall reimburse Xxxxxxx Sachs for any payments made by
Xxxxxxx Xxxxx under this Agreement by paying over to Xxxxxxx Sachs, prior
to the termination of the Trust, any funds held by the Trust after
satisfaction in full of the obligation of the Trust to pay distributions in
respect of the Securities, the obligation of the Trust to distribute cash,
Ordinary Shares, Marketable Securities and other property to the holders of
the Securities, and satisfaction of or provision for all other obligations
and liabilities of the Trust, whether present or future, contingent or
otherwise, as principal or surety or otherwise.
Section 3.3. Termination of Administration Agreement. If the Service
Provider shall resign or be removed as Administrator pursuant to the
Administration Agreement, the Service Provider shall promptly repay to Xxxxxxx
Xxxxx a ratable portion of the Up-Front Fee Amount for the period from the date
of such resignation or removal to the
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Exchange Date, together with any unexpended portion of the Up-Front Expense
Amount.
Section 3.4. Amendments to Other Agreements. The Service Provider agrees
that it will not consent to any amendment of the Administration Agreement, the
Custodian Agreement or the Collateral Agreement without the prior written
consent of Xxxxxxx Sachs.
Section 3.5. Payment to ChaseMellon Shareholder Services, L.L.C. The
Service Provider agrees that it shall pay over to ChaseMellon Shareholder
Services, L.L.C. that portion of the payments made to the Service Provider
under this Agreement that is due and payable to ChaseMellon Shareholder
Services, L.L.C. in connection with its role as Paying Agent for the Trust.
ARTICLE IV
MISCELLANEOUS
Section 4.1. Term of Contract. This Agreement shall continue in effect
until the completion of the liquidation of the Trust in accordance with Section
8.3(c) of the Trust Agreement.
Section 4.2. Assumption of Liability. By executing this Agreement, none
of the Trustees assumes any personal liability under this Agreement.
Section 4.3. Notices.
(a) All notices and other communications provided for in this Agreement,
unless otherwise specified, shall be in writing and shall be given at the
addresses set forth in the following sentence or at such other addresses as may
be designated by notice duly given in accordance with this Section 4.3 to each
other party to this Agreement. Until such notice is given, (i) notices to
Xxxxxxx Xxxxx shall be directed to it at 00 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx
00000, Telecopier (000) 000-0000, Attention Xxxx X. Efron; (ii) notices to the
Service Provider (for itself or for the Paying Agent) shall be directed to it
at The Chase Manhattan Bank, 000 Xxxx 00xx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000,
Telecopier No. (000) 000-0000, Attention: Collateral Management Services; and
(iii) notices to the Trust or the Trustees shall be directed to the Trustees at
Department of Economics, University of Delaware, Xxxxxx, Xxxxxxxx 00000,
Telecopier No. ____________, Attention: Xxxxxx X. Xxxxxxx.
(b) Each notice given pursuant to Section 4.3(a) shall be effective (i) if
sent by certified mail (return receipt requested), 72 hours after being
deposited in the United States mail, postage prepaid; (ii) if given by telex or
telecopier, when such telex or telecopied notice is transmitted; or (iii) if
given by any other means, when delivered at the address specified in this
Section 4.3.
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Section 4.4. Governing Law; Severability. This Agreement shall be governed
by and construed in accordance with the laws of the State of New York. To the
extent permitted by law, the unenforceability or invalidity of any provision or
provisions of this Agreement shall not render any other provision or provisions
contained in this Agreement unenforceable or invalid.
Section 4.5. Entire Agreement. Except as expressly set forth in this
Agreement, this Agreement constitutes the entire agreement among the parties
with respect to the subject matter of this Agreement and supersedes all prior
agreements, understandings and negotiations, both written and oral, among the
parties with respect to the subject matter of this Agreement.
Section 4.6. Amendments; Waivers. Any provision of this Agreement may be
amended or waived (either generally or in a particular instance and either
retrospectively or prospectively) if, and only if, such amendment or waiver is
in writing and signed, in the case of an amendment, by Xxxxxxx Sachs, the
Service Provider and the Trust or, in the case of a waiver, by the party against
whom the waiver is to be effective. No failure or delay by either party in
exercising any right, power or privilege under this Agreement shall operate as a
waiver of such right, power or privilege nor shall any single or partial
exercise of any such right, power or privilege preclude any other or further
exercise of such right, power or privilege or the exercise of any other right,
power or privilege. The rights and remedies in this Agreement provided shall be
cumulative and not exclusive of any rights or remedies provided by law.
Section 4.7. Non-Assignability. This Agreement and the rights and
obligations of the parties under this Agreement may not be assigned or delegated
by either party without the prior written consent of the other party, and any
purported assignment without such consent shall be void.
Section 4.8. No Third Party Rights; Successors and Assigns. This Agreement
is not intended and shall not be construed to create any rights in any person
other than Xxxxxxx Xxxxx, the Service Provider, the Trust and their respective
successors and assigns and no person shall assert any rights as third party
beneficiary under this Agreement. Whenever any of the parties to this Agreement
is referred to, such reference shall be deemed to include the successors and
assigns of such party. All the covenants and agreements in this Agreement
contained by or on behalf of Xxxxxxx Sachs, the Service Provider, the Trust
shall bind, and inure to the benefit of, their respective successors and assigns
whether so expressed or not, and shall be enforceable by and inure to the
benefit of the Service Provider and its successors and assigns.
Section 4.9. Counterparts. This Agreement may be executed, acknowledged
and delivered in any number of counterparts, each of which shall be an original,
but all of which shall constitute a single agreement, with the same effect as if
the signatures on each such counterpart were upon the same instrument.
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IN WITNESS WHEREOF, the parties have caused this Fund Expense and
Indemnity Agreement to be duly executed and delivered as of the first date set
forth above.
XXXXXXX, XXXXX & CO.
By:____________________________
(Xxxxxxx, Sachs & Co.)
THE SERVICE PROVIDER:
THE CHASE MANHATTAN BANK,
as Service Provider
By:____________________________
Name:
Title:
THE TRUST:
AMDOCS AUTOMATIC COMMON EXCHANGE
SECURITY TRUST
By:_____________________________
Xxxxxx X. Xxxxxxx,
as Trustee
By:_____________________________
Xxxxxxx X. Xxxxxx III,
as Trustee
By:_____________________________
Xxxxx X. X'Xxxxx,
as Trustee
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SCHEDULE I
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Expenses of Organization of the Trust and the
Public Offering of the Securities
Up-Front Fee Amount: $230,000
Up-Front Expense Amount:
Trustees Fees 36,000
Wall Street Concepts Fees 3,000
Accounting Fees 96,500
Fidelity Bond 1,500
Other $ 15,000
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Total Up-Front Expense Amount $152,000
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