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EXHIBIT 9B
SUB-ADMINISTRATION AGREEMENT
THIS AGREEMENT is made as of this 1st day of October, 1996, by and
between GABELLI FUNDS, INC. (the "Administrator"), and BISYS FUND SERVICES
LIMITED PARTNERSHIP, d/b/a BISYS FUND SERVICES ("BISYS").
WHEREAS, the Administrator is the investment adviser for the
registered investment companies (hereinafter referred to individually as a
"Company" and collectively as the "Companies") set forth in Schedule B attached
hereto and is responsible for the provision of administrative services to such
Companies and each of the Portfolios (hereinafter referred to individually as a
"Portfolio" and collectively as the "Portfolios") of such Companies;
WHEREAS, each Company is a management investment company registered
under the Investment Company Act of 1940, as amended (the "1940 Act"); and
WHEREAS, the Administrator desires to retain BISYS to assist it in
performing administrative services with respect to each Portfolio and BISYS is
willing to perform such services on the terms and conditions set forth in this
Agreement.
NOW, THEREFORE, in consideration of the premises and the convenants
hereinafter contained, the Administrator and BISYS hereby agree as follows:
ARTICLE 1. Retention of BISYS; Conversion to the Services. The
Administrator hereby engages BISYS to furnish each Portfolio with the
administrative services as set forth in Article 2 below (collectively, the
"Services"), and, in connection therewith, the Administrator agrees to cause
each Portfolio to convert to BISYS' data processing systems and software (the
"BISYS System") as necessary in order to receive the Services. The
Administrator shall cooperate with BISYS to provide BISYS with all necessary
information and assistance required to successfully convert to the BISYS
System. BISYS shall provide the Administrator with a schedule relating to such
conversion and the parties agree that the conversion may progress in stages.
The date upon which all Services shall have been converted to the BISYS System
shall be referred to herein as the "Conversion Date." The parties hereby
agree that the Conversion Date shall be no later than January 1, 1997. BISYS
hereby accepts such engagement and agrees to perform the Services commencing,
with respect to each individual Service, on the date that the conversion of
such Service to the BISYS System has been completed. BISYS shall determine in
accordance with its normal acceptance procedures when the applicable Service
has been successfully converted.
BISYS shall, for all purposes herein, be deemed to be an independent
contractor and, unless otherwise expressly provided or authorized, shall have
no authority to act for or represent the Administrator or the Companies in any
way.
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ARTICLE 2. Administrative Services. BISYS shall perform or
supervise the performance by others of administrative services in connection
with the operations of the Portfolios, and, on behalf of the Companies, will
investigate, assist in the selection of and conduct relations with custodians,
depositories, accountants, legal counsel, underwriters, brokers and dealers,
corporate fiduciaries, insurers, banks and persons in any other capacity deemed
to be necessary or desirable for the Portfolios' operations. BISYS shall
provide the Directors'/Trustees (hereafter, the "Directors") of the Companies
with such reports regarding investment performance as they may reasonably
request but shall have no responsibility for supervising the performance by any
investment adviser or sub-adviser of its responsibilities.
BISYS shall provide the Companies with regulatory reporting, all
necessary office space, equipment, personnel, compensation and facilities
(including facilities for meetings of shareholders ("Shareholders") and
Directors of the Companies) for handling the affairs of the Portfolios and such
other services as BISYS and the Administrator shall, from time to time,
determine to be necessary to perform BISYS' obligations under this Agreement.
In addition, at the request of the Boards of Directors, BISYS shall make
reports to the Companies' Directors concerning the performance of its
obligations hereunder.
Without limiting the generality of the foregoing, BISYS shall:
(a) calculate contractual Company expenses and provide
necessary instructions for all disbursements for the
Companies, and as appropriate compute each Company's
yields, total return, expense ratios, portfolio
turnover rate, average commission rate and, if
required, portfolio average dollar-weighted maturity;
(b) assist Company counsel with the preparation of
prospectuses, statements of additional information,
registration statements and proxy materials;
(c) prepare such reports, applications and documents
(including reports regarding the sale and redemption
of Shares as may be required in order to comply with
Federal and state securities law) as may be
necessary or desirable to register each Company's
Shares with state securities authorities, monitor the
sale of Company Shares for compliance with state
securities laws, and file with the appropriate state
securities authorities the registration statements
and reports for each Company and each Company's
Shares and all amendments thereto, as may be
necessary or convenient to register and keep
effective each Company and its Shares with state
securities authorities to enable each Company to make
a continuous offering of its Shares;
(d) develop and prepare, with the assistance of the
Administrator, communications to Shareholders,
including the annual report to Shareholders,
coordinate the mailing of prospectuses, notices, proxy
statements, proxies and other reports to
Shareholders, and supervise and facilitate the proxy
solicitation process for all shareholder meetings,
including the tabulation of shareholder votes;
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(e) administer contracts on behalf of each Company with,
among others, each Company's investment adviser,
distributor, custodian, transfer agent and fund
accountant;
(f) supervise the Companies' transfer agent with respect
to the payment of dividends and other distributions
to Shareholders;
(g) calculate performance data of the Portfolios for
dissemination to information services covering the
investment company industry;
(h) prepare or cause to be prepared at its expense the
filing of each Company's tax returns;
(i) examine and review the operations and performance of
the various organizations providing services to the
Companies or any Portfolio, including, without
limitation, the investment adviser, distributor,
custodian, fund accountant, transfer agent, outside
legal counsel and independent public accountants,
and, at the request of a Company's Board of
Directors, report to the Board on the performance of
such organizations;
(j) assist with the layout and printing of publicly
disseminated prospectuses and assist with and
coordinate layout and printing of each Company's
quarterly, semi-annual and annual reports to
Shareholders;
(k) assist with the design, development, and operation of
the Portfolios, including new classes, investment
objectives, policies and structure;
(l) provide individuals reasonably acceptable to each
Company's Board of Directors to serve as officers of
the Company, who will be responsible for the
management of certain of the Company's affairs as
determined by the Company's Board of Directors;
(m) advise each Company and its Board of Directors on
matters concerning the Company and its affairs;
(n) obtain and keep in effect fidelity bonds and
directors and officers/errors and omissions insurance
policies for each Company in accordance with the
requirements of Rules 17g-1 and 17d-1(7) under the
1940 Act as such bonds and policies are approved by
the Company's Board of Directors;
(o) monitor and advise each Company and its Portfolios on
their regulated investment company status under the
Internal Revenue Code of 1986, as amended;
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(p) perform all administrative services and functions of
each Company and each Portfolio to the extent
administrative services and functions are not
provided to the Company or such Portfolio pursuant to
the Company's or such Portfolio's administration
agreement, investment advisory agreement,
distribution agreement, custodian agreement, transfer
agent agreement and fund accounting agreement;
(q) furnish advice and recommendations with respect to
other aspects of the business and affairs of the
Portfolios as the Administrator and BISYS shall
determine desirable;
(r) prepare and file with the SEC the semi-annual report
for each Company on Form N-SAR and all required
notices pursuant to Rule 24f-2;
(s) assist each Company with respect to SEC examinations,
including the furnishing of documents and
information, as appropriate, and responding to SEC
examination letters; and
(t) assist each Company in preparing for Board meetings
by (i) coordinating board book production and
distribution, (ii) preparing Board agendas, (iii)
preparing the BISYS section of Board materials, (iv)
preparing special Board meeting materials, including
but not limited to, materials relating to annual
contract approvals and 12b-1 plan approvals, as
agreed upon by the parties, and (v) such other Board
meeting functions that are agreed upon by the
parties.
BISYS shall perform such other services for each Company that are
mutually agreed upon by the parties from time to time. Such services may
include performing internal audit examinations; mailing the annual reports of
the Portfolios; preparing an annual list of Shareholders; and mailing notices
of Shareholders' meetings, proxies and proxy statements, for all of which the
Administrator will pay or cause to be paid BISYS' reasonable out-of-pocket
expenses.
ARTICLE 3. Allocation of Charges and Expenses.
(A) BISYS. BISYS shall furnish at its own expense the executive,
supervisory and clerical personnel necessary to perform its obligations under
this Agreement. BISYS shall also provide the items which it is obligated to
provide under this Agreement, and shall pay all compensation, if any, of
officers of each Company as well as all Directors of each Company who are
affiliated persons of BISYS or any affiliated company of BISYS; provided,
however, that unless otherwise specifically provided, BISYS shall not be
obligated to pay the compensation of any employee of a Company retained by the
Directors of such Company to perform services on behalf of the Company.
(B) The Administrator. The Administrator hereby represents that
each Company has undertaken to pay or cause to be paid all other expenses of
the Company not otherwise allocated herein, including, without limitation,
organization costs, taxes, expenses for legal and auditing
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services, the expenses of preparing (including typesetting), printing and
mailing reports, prospectuses, statements of additional information, proxy
solicitation material and notices to existing Shareholders, all expenses
incurred in connection with issuing and redeeming Shares, the costs of
custodial services, the cost of initial and ongoing registration of the Shares
under Federal and state securities laws, fees and out-of-pocket expenses of
Directors who are not affiliated persons of the Administrator or the Investment
Adviser to the Company or any affiliated corporation of the Administrator or
the Investment Adviser, insurance, interest, brokerage costs, litigation and
other extraordinary or nonrecurring expenses, and all fees and charges of
investment advisers to the Company.
ARTICLE 4. Compensation of BISYS.
(A) Sub-Administration Fee. Commencing on the Conversion Date, for
the services rendered, the facilities furnished and the expenses assumed by
BISYS pursuant to this Agreement, the Administrator shall pay to BISYS
compensation at an annual rate specified in Schedule A attached hereto. Such
compensation shall be calculated and accrued daily, and paid to BISYS monthly.
If the Conversion Date occurs subsequent to the first day of a
month or termination of this Agreement occurs before the last day of a month,
BISYS' compensation for that part of the month in which this Agreement is in
effect shall be prorated in a manner consistent with the calculation of the
fees as set forth above. Payment of BISYS' compensation for the preceding
month shall be made promptly.
(B) Survival of Compensation Rights. All rights of compensation
under this Agreement for services performed as of the termination date shall
survive the termination of this Agreement.
ARTICLE 5. Limitation of Liability of BISYS. The duties of BISYS
shall be confined to those expressly set forth herein, and no implied duties
are assumed by or may be asserted against BISYS hereunder. BISYS shall not be
liable for any error of judgment or mistake of law or for any loss arising out
of any act or omission in carrying out its duties hereunder, except a loss
resulting from willful misfeasance, bad faith or negligence in the performance
of its duties, or by reason of reckless disregard of its obligations and duties
hereunder, except as may otherwise be provided under provisions of applicable
law which cannot be waived or modified hereby. (As used in this Article 5, the
term "BISYS" shall include partners, officers, employees and other agents of
BISYS as well as BISYS itself.)
So long as BISYS acts in good faith and with due diligence and without
negligence, the Administrator assumes full responsibility and shall indemnify
BISYS and hold it harmless from and against any and all actions, suits and
claims, whether groundless or otherwise, and from and against any and all
losses, damages, costs, charges, reasonable counsel fees and disbursements,
payments, expenses and liabilities (including reasonable investigation
expenses) arising directly or indirectly out of BISYS' actions taken or
nonactions with respect to the performance of services hereunder.
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The indemnity and defense provisions set forth herein shall indefinitely
survive the termination of this Agreement.
The rights hereunder shall include the right to reasonable advances of
defense expenses in the event of any pending or threatened litigation with
respect to which indemnification hereunder may ultimately be merited. In order
that the indemnification provision contained herein shall apply, however, it is
understood that if in any case the Administrator may be asked to indemnify or
hold BISYS harmless, the Administrator shall be fully and promptly advised of
all pertinent facts concerning the situation in question, and it is further
understood that BISYS will use all reasonable care to identify and notify the
Administrator promptly concerning any situation which presents or appears
likely to present the probability of such a claim for indemnification against
the Administrator, but failure to do so in good faith shall not affect the
rights hereunder.
The Administrator shall be entitled to participate at its own expense
or, if it so elects, to assume the defense of any suit brought to enforce any
claims subject to this indemnity provision. If the Administrator elects to
assume the defense of any such claim, the defense shall be conducted by counsel
chosen by the Administrator and satisfactory to BISYS, whose approval shall not
be unreasonably withheld. In the event that the Administrator elects to assume
the defense of any suit and retain counsel, BISYS shall bear the fees and
expenses of any additional counsel retained by it. If the Administrator does
not elect to assume the defense of a suit, it will reimburse BISYS for the
reasonable fees and expenses of any counsel retained by BISYS.
BISYS may apply to the Administrator at any time for instructions and
may consult counsel for the Administrator or its own counsel and with
accountants and other experts with respect to any matter arising in connection
with BISYS' duties, and BISYS shall not be liable or accountable for any action
taken or omitted by it in good faith in accordance with such instruction or with
the opinion of such counsel, accountants or other experts.
Also, BISYS shall be protected in acting upon any document which it
reasonably believes to be genuine and to have been signed or presented by the
proper person or persons. BISYS will not be held to have notice of any change
of authority of any officers, employees or agents of the Administrator until
receipt of written notice thereof from the Administrator.
ARTICLE 6. Activities of BISYS. The services of BISYS rendered
hereunder are not to be deemed to be exclusive. BISYS is free to render such
services to others and to have other businesses and interests. It is understood
that directors, officers, employees and Shareholders are or may be or become
interested in BISYS, as officers, employees or otherwise and that partners,
officers and employees of BISYS and its counsel are or may be or become
similarly interested in the Companies, and that BISYS may be or become
interested in the Companies as a Shareholder or otherwise.
ARTICLE 7. Duration of this Agreement. The Term of this Agreement
shall be as specified in Schedule A hereto.
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ARTICLE 8. Assignment. This Agreement shall not be assignable by
either party without the written consent of the other party; provided, however,
that BISYS may, with the prior consent of the Administrator, at its expense,
subcontract with any entity or person concerning the provision of the services
contemplated hereunder. BISYS shall not, however, be relieved of any of its
obligations under this Agreement by the appointment of such subcontractor and
provided further, that BISYS shall be responsible, to the extent provided in
Article 5 hereof, for all acts of such subcontractor as if such acts were its
own. This Agreement shall be binding upon, and shall inure to the benefit of,
the parties hereto and their respective successors and permitted assigns.
ARTICLE 9. Amendments. This Agreement may be amended if such
amendment is specifically approved in writing by the parties hereto.
ARTICLE 10. Certain Records. BISYS shall maintain customary records
in connection with its duties as specified in this Agreement. Any records
required to be maintained and preserved pursuant to Rules 31a-1 and 31a-2 under
the 1940 Act which are prepared or maintained by BISYS on behalf of each
Company shall be prepared and maintained at the expense of BISYS, but shall be
the property of each Company and will be made available to or surrendered
promptly to each Company on request.
In case of any request or demand for the inspection of such records by
another party, BISYS shall notify the Administrator and follow the
Administrator's instructions as to permitting or refusing such inspection;
provided that BISYS may exhibit such records to any person in any case where it
is advised by its counsel that it may be held liable for failure to do so,
unless (in cases involving potential exposure only to civil liability) the
Administrator or the appropriate Company has agreed to indemnify BISYS against
such liability.
ARTICLE 11. Definitions of Certain Terms. The terms "interested
person" and "affiliated person," when used in this Agreement, shall have the
respective meanings specified in the 1940 Act and the rules and regulations
thereunder, subject to such exemptions as may be granted by the Securities and
Exchange Commission.
ARTICLE 12. Notice. Any notice required or permitted to be given by
either party to the other shall be deemed sufficient if sent by registered or
certified mail, postage prepaid, addressed by the party giving notice to the
other party at the following address: if to BISYS, to it at 0000 Xxxxxxx Xxxx,
Xxxxxxxx, Xxxx 00000; if to the Administrator, to it at Xxx Xxxxxxxxx Xxxxxx,
Xxx, Xxx Xxxx 00000-0000, or at such other address as such party may from time
to time specify in writing to the other party pursuant to this Section.
ARTICLE 13. Confidential Information. Each party acknowledges that
it may acquire knowledge and information relating to the other party and its
affiliates or the Companies including, but not limited to, information
pertaining to business plans, employees, customers and/or suppliers, and that
all such knowledge and information acquired or developed is and shall be
confidential and proprietary information (all such confidential and proprietary
information is herein collectively
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referred to as the "Confidential Information"). Each party agrees to hold the
Confidential Information in strict confidence, to refrain from directly or
indirectly disclosing it to others or using it in any way except for purposes of
performing services hereunder, and to prevent any unauthorized person access to
it either before or after termination of this Agreement, without the prior
written consent of the other party. Both parties further agree to take all
action reasonable and necessary to the protect the confidentially of the
Confidential Information. The parties shall use their best efforts to have
their directors, officers, employees and agents agree to the terms of this
Section. The obligations of the parties contained in this section shall
survive termination of this Agreement. Neither party's confidentiality
obligations under this provision shall apply to such information that (i) was
in the public domain or available to a third party without restrictions at or
prior to the time such information was made know to such party, (ii) had been
independently know to such party at the time of disclosure for persons who
where not subject to similar confidentiality obligations, or (iii) is required
to be disclosed by law (except that each party will use best efforts to give
the other party written notice prior to any such disclosure).
ARTICLE 14. Governing Law. This Agreement shall be construed in
accordance with the laws of the State of Ohio and the applicable provisions of
the 1940 Act. To the extent that the applicable laws of the State of Ohio, or
any of the provisions herein, conflict with the applicable provisions of the
1940 Act, the latter shall control.
ARTICLE 15. Multiple Originals. This Agreement may be executed in
two or more counterparts, each of which when so executed shall be deemed to be
an original, but such counterparts shall together constitute but one and the
same instrument.
IN WITNESS WHEREOF, the parties hereto have executed and delivered
this Agreement as of the day and year first above written.
GABELLI FUNDS, INC.
By: /s/ [SIG]
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Title: VP & CEO Gabelli Funds Division
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BISYS FUND SERVICES LIMITED
PARTNERSHIP
BY: BISYS FUND SERVICES, INC.
GENERAL PARTNER
By: /s/ [SIG]
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Title: Executive Vice President
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SCHEDULE A
TO THE ADMINISTRATION AGREEMENT
DATED AS OF OCTOBER 1, 1996
BETWEEN GABELLI FUNDS, INC.
AND
BISYS FUND SERVICES LIMITED PARTNERSHIP
Portfolios: This Agreement shall apply to all Portfolios, either now or
hereafter created of the Companies set forth below. The
current Portfolios of such Companies are also set forth below.
GABELLI CONVERTIBLE SECURITIES FUND, INC.
Gabelli Convertible Securities Fund
GABELLI EQUITY SERIES FUNDS, INC.
Gabelli Small Cap Fund
Gabelli Equity Income Fund
GABELLI GLOBAL SERIES FUNDS, INC.
Gabelli Global Telecommunications Fund
Gabelli Global Convertible Securities Fund
Gabelli Global Interactive Couch Potato Fund
Gabelli Global Entertainment & Media Fund
Gabelli Global Growth Fund
GABELLI GOLD FUND, INC.
Gabelli Gold Fund
GABELLI INTERNATIONAL GROWTH FUND, INC.
Gabelli International Growth Fund
GABELLI INVESTOR FUNDS, INC.
Gabelli ABC Fund
Fees: Pursuant to Article 4, in consideration of services rendered and
expenses assumed pursuant to this Agreement, the Administrator will
pay BISYS on the first business day of each month, or at such time(s)
as BISYS shall request and the parties hereto shall agree, a fee based
upon the assets of all registered management investment companies for
which BISYS serves as Subadministrator that are advised by Gabelli
Funds, Inc. or its affiliates ("BISYS-administered Investment
Companies"). Such fee shall be computed daily at the annual rate of:
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Ten one-hundredths of one percent (.10%) of the
BISYS-administered Investment Companies' average daily net
assets up to $350 million.
Seven and one-half one-hundredths of one percent (.075%) of
the BISYS-administered Investment Companies' average daily net
assets in excess of $350 million up to $600 million.
Six one-hundredths of one percent (.06%) of the
BISYS-administered Investment Companies' average daily net
assets in excess of $600 million.
The fees set forth, above shall be subject to a minimum annual fee
amount of $40,000 for each Portfolio. Such minimum annual fee amount
shall be payable to BISYS on the first business day of each month or
at such other time(s) as the parties may agree upon.
The fee for the period for the day of the month upon which the
Conversion Date occurs until the end of that month shall be prorated
according to the proportion which such period bears to the full
monthly period. Upon any termination of this Agreement before the end
of any month, the fee for such part of a month shall be prorated
according to the proportion which such period bears to the full
monthly period and shall be payable upon the date of termination of
this Agreement.
For purposes of determining the fees payable to BISYS, the value of
the net assets of a particular Portfolio shall be computed in the
manner described in each Company's Articles of Incorporation or in the
Prospectus or Statement of Additional Information respecting that
Portfolio as from time to time is in effect for the computation of
the value of such net assets in connection with the determination of
the liquidating value of the shares of such Portfolio.
The parties hereby confirm that the fees payable hereunder shall be
applied to each Portfolio as a whole, and not to separate classes of
shares within the Portfolios.
Terms: The initial term of this Agreement (the "Initial Term") shall be for a
period commencing on the date this Agreement is executed by both
parties and ending on the date that is one year after the Conversion
Date. This Agreement shall be renewed automatically for successive
periods of one year after the Initial Term, unless written notice of
nonrenewal is provided by either party not less than 90 days prior to
the end of the Initial Term or 90 days advance written notice of
termination is provided by either party at any time following the
Initial Term. In the event of any breach of this Agreement by either
party, the non-breaching party shall notify the breaching party in
writing of such breach and upon receipt of such notice, the breaching
party shall
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have 45 days to remedy the breach. In the event any material breach
is not remedied within such time period, the nonbreaching party may
immediately terminate this Agreement.
Notwithstanding the foregoing, after such termination for so long as
BISYS, with the written consent of the Administrator, in fact
continues to perform any one or more of the service contemplated by
this Agreement or any schedule or exhibit hereto, the provisions of
this Agreement, including without limitation the provisions dealing
with indemnification, shall continue to full force and effect.
Compensation due BISYS and unpaid by the Administrator upon such
termination shall be immediately due and payable upon and
notwithstanding such termination. BISYS shall be entitled to collect
for the Administrator, in addition to the compensation described in
this Schedule A, all costs reasonably incurred in connection with the
Administrator's activities in effecting such termination, including
without limitation, the delivery to each Company and/or its designees
of the Company's property, records, instruments and documents, or any
copies thereof. To the extent that BISYS may retain in its possession
copies of any Company documents or records subsequent to such
termination which copies had not been requested by or on behalf of a
Company in connection with the termination process described above,
BISYS will provide such Company with reasonable access to such copies;
provided, however, that, in exchange therefor, the Company shall
reimburse BISYS for all costs reasonably incurred in connection
therewith.
If, during the Initial Term, as defined above, for any reason other
than a breach of this Agreement, BISYS is replaced as
sub-administrator, then the Administrator shall make a one-time cash
payment, as liquidated damages, to BISYS equal to the balance due
BISYS for the remainder of the Initial Term of this Agreement, assuming
for purposes of calculation of the payment that the asset level of
each Company on the date BISYS is replaced, or a third party is
added, will remain constant for the balance of such term.
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