SERVICES AGREEMENT WEITZ INVESTMENT MANAGEMENT, INC. and CITI FUND SERVICS OHIO, INC.
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July 2017 Version
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Version - July 2017
TABLE OF CONTENTS
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DEFINITIONS AND INTERPRETATION
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| 2. |
SERVICES AND RELATED TERMS AND CONDITIONS
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| 3. |
CLIENT COMMUNICATIONS
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| 4. |
COMPLIANCE WITH LAWS; NO ADVICE
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| 5. |
COMMUNICATIONS AND REPORTS TO CLIENT; RECORDS AND ACCESS; CONFIDENTIALITY; PUBLICITY
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| 6. |
SCOPE OF RESPONSIBILTY
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| 7. |
INDEMNITY
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| 8. |
FEES AND EXPENSES
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| 9. |
REPRESENTATIONS
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| 10. |
TERM AND TERMINATION
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| 11. |
GOVERNING LAW AND JURISDICTION
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| 12. |
MISCELLANEOUS
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________________
Schedule 1 Definitions
Schedule 2 Services
Schedule 3 Dependencies
Schedule 4 Confidentiality and Data Privacy Conditions
Schedule 5 Fee Schedule
THIS SERVICES AGREEMENT is made on March 1, 2021, by and between Xxxxx Investment Management, Inc. the
entity set forth on the signature page hereto (the "Client') and Citi Fund Services Ohio, Inc., a corporation with its place of business at 0000 Xxxxxx Xxxxxxx, Xxxxx 000, Xxxxxxxx, Xxxx 00000 (the "Service Provider”) or "Citi' and, with the Client,
the 'Parties"). if more than one Client has signed this Agreement, this Agreement shall be considered a separate agreement between the Service Provider and each Client, and no Client shall be (i) liable for the obligations of any other Client or (ii)
entitled to the benefits conferred under this Agreement on any other Client.
BACKGROUND:
WHEREAS, Client wishes to retain Service Provider to furnish the services set forth
in Schedule 2 hereto.
WHEREAS, Client and Service Provider hereby agree that Service Provider will perform
the services upon the terms set forth in this Agreement.
NOW, THEREFORE, in consideration of the covenants herein contained, the Client and
the Service Provider hereby agree as follows:
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1.
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DEFINITIONS AND INTERPRETATION
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1.1.
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Definitions. Schedule 1 contains capitalized terms that have the meanings set forth
therein. Other capitalized terms used but not defined in Schedule 1 will have the meanings set forth elsewhere in this Agreement.
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1.2.
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Interpretation.
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1.2.1.
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The schedules, exhibits and annexes to the Agreement are expressly made a part of this Agreement. In the event of any inconsistency between this Agreement and any schedule, exhibit or annex, the relevant terms
of the schedule, exhibit or annex shall prevail; provided, that no provision of any such schedule, exhibit or annex shall prevail over clause 5 (Scope of Responsibility) or clause 7 (Indemnity) of this Agreement unless such provision
specifically references such clause of this Agreement in relation to the provisions of such schedule, exhibit or annex intended to prevail over such clause,
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1.2.2.
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The headings in this Agreement do not affect its interpretation.
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1.2.3.
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A reference to: (i) any Party includes (where applicable) its lawful successors, permitted assigns and transferees; the singular includes the plural and vice versa; and (Hi) any statute or regulation shall be
construed as references to such statute or regulation as in force at the date of this Agreement and as subsequently re¬enacted or revised.
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2.
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SERVICES AND RELATED TERMS AND CONDITIONS
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2.1.
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Services; No Implied Duties. The Services are described in Schedule 2. The Service
Provider will perform the Services in accordance with and subject to the terms of this Agreement starting on the Effective Date and ending on the final day of the Term. The Services will be provided only on Business Days, and any functions
or duties normally scheduled to be performed on any day that is not a Business Day will be performed on, and as of, the next Business Day. The Services are provided only with respect to the Client and the related Funds of the Client (if
any) listed in an annex to Schedule 2, and the Service Provider shall have no obligation to provide Services to any Person (including any other Funds) unless the Service Provider has agreed to do so in a written amendment to Schedule 2 or a
joinder, as contemplated by clause 12.1. The Service Provider is responsible for the performance of only those duties as are expressly set forth herein and in Schedule 2. The Service Provider will have no implied duties or obligations.
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Page 1
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2.2.
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Service Changes. The Service Provider will not be obliged to change the Services unless it has
agreed to do so pursuant to a written amendment to Schedule 2. Any change to the Services agreed to by the Service Provider (a "Service Change") will be set forth in an amendment
to Schedule 2, which amendment must specify (i) the timeline and dependencies, and the Parties' respective obligations, for implementing the Service Change and (H) any implementation or additional ongoing fees and expenses that may be
required to effect such Service Change. The foregoing process is the "Change Control Process." Client requests to change the Services necessitated by a change to the Client's
Organic Documents, Offering Documents or Policies and Procedures, or a change in applicable Law, will be subject to the Change Control Process. Without prejudice to the Change Control Process, the Client will promptly notify the Service
Provider of any changes (or pending changes) with respect to the Client that are relevant to the Services.
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2.3.
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Provision of Information; Cooperation. In order to permit the Service Provider to provide the
Services, the Client agrees to provide, and to cause its employees and current and immediately preceding Agents to provide, to the Service Provider the information that the Service Provider may reasonably request in connection with the
Services and this Agreement, including, without limitation, any Organic Documents, Offering Documents and Policies and Procedures of the Client and any amendments thereto.
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2.4.
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Dependencies. The Service Provider will use reasonable efforts to provide the Services while any
of the Dependencies specified in Schedule 3 subsist, provided that the Service Provider shall not be obliged to incur additional costs to do so.
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2.5.
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Client Information. As between the Parties, the Client is responsible for the accuracy and
completeness of, and the Service Provider has no obligation to review for accuracy or completeness of: (i) information contained in the Organic Documents, Offering Documents and any Policies and Procedures and (ii) any data submitted to the
Service Provider for processing by or on behalf of the Client. The Service Provider may charge the Client for additional work required to re-process any such incorrect data at its standard hourly rates or as set forth in the Fee Schedule.
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2.6.
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Use of Agents. The Service Provider is permitted to appoint Agents without the consent of the
Client to perform any of the duties of the Service Provider under this Agreement. The Service Provider will use reasonable care in the selection and continued appointment of its Agents.
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2.7.
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Other Services and Activities; Conflicts of Interest.
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2.7.1.
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The Client acknowledges that the Service Provider and its Affiliates may provide services, including administration, advisory, banking and lending, broker dealer and other financial services, to the Client or
to other Persons. The Client also acknowledges that the Service Provider may be (i) prohibited under applicable Law or contractually from disclosing to the Client any fact or thing that may come to the knowledge of the Service Provider or
such Affiliates in the course of providing such services and (ii) "walled off" from facts or things that may come to the knowledge of its Affiliates in the course of providing such services, and therefore may be unable to make any such
disclosures to the Client, and the Client agrees that neither the Service Provider nor such Affiliates will be required or expected under this Agreement to do so.
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2.7.2.
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Among other things, the Service Provider or an Affiliate may receive or generate valuation information with respect to securities, products or services of the Client, and neither the Service Provider nor any
Affiliate is under any obligation to disclose such information to the Client or any of the Client's Investors. The Client acknowledges that neither the Service Provider nor any Affiliate is under any obligation to use any such information to
assess or verify the accuracy of any information, including valuation information, that the Service Provider receives from the Client or from any Person specified in clause 6.3.5.
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2.7.3.
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Subject to compliance with its confidentiality obligations hereunder, the Service Provider may acquire, hold or deal with, for its own account or for the account of other Persons, any shares or securities in
which the Client is authorized to invest (for itself or its Investors), and the Service Provider will not be required to account to the Client for any profit arising therefrom.
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2.8.
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AML/OFAC. The Client acknowledges that, unless included in the Services listed on Schedule 2,
the Service Provider will not and shall have no duty or obligation to provide services relating to anti-money laundering ("AML") compliance under the USA PATRIOT Act or compliance
with any regulations or Executive Orders administered by the U.S. Treasury Department's Office of Foreign Assets Control ("OFAC') in connection with the services provided under this Agreement. The Client agrees to provide or cause to be
provided to the Service Provider any AML or OFAC compliance reviews or reports conducted by Client or another Person in connection with the services provided by the Service
Provider under this Agreement.
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2.9.
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Withholding Taxes. Client acknowledges that Service Provider is not responsible pursuant to this
Agreement for the withholding, deduction or payment of any U.S. federal withholding taxes. Client nevertheless acknowledges that Service Provider or other relevant parties (including counterparties or Investors) may be required by
applicable law to pay, withhold or deduct amounts in respect of taxes in connection with the Services, and that such amounts may be due even where there is no corresponding payment of cash to Client or where there is a payment of cash from
Client to a counterparty, Investor, or other person. Client authorizes Service Provider to pay, withhold or deduct any such amounts to the extent required or permitted by applicable law. For the avoidance of doubt, and notwithstanding any
other provision of this Agreement, Service Provider shall not be required to pay any additional amounts to Client or any counterparty or Investor in respect of such payment, deduction or withholding. If Service Provider determines that
taxes are due in connection with the Services and have not been paid {through withholding or otherwise), Service Provider shall notify Client of such unpaid taxes and Client shall promptly make a payment in respect of such taxes to the
Internal Revenue Service and shall deliver to Service Provider the original or a certified copy of a receipt evidencing such payment or other evidence of such payment reasonably satisfactory to Service Provider.
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3.
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CLIENT COMMUNICATIONS
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3.1.
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Authority. The Client authorizes the Service Provider to accept and act upon any communications,
including Instructions and any form or document provided by an Authorized Person. The Client also authorizes the Service Provider to rely on the information and data it receives from any Persons specified in clause 6.3.5. The Client
confirms that each Authorized Person is authorized to perform all lawful acts on behalf of the Client in connection with this Agreement including, but not limited to, (i) signing any agreements, declarations or other documents relating to
the Services and (ii) providing any Instruction, until the Service Provider has received written notice or other notice acceptable to It of any change of an Authorized Person and the Service Provider has had a reasonable opportunity under
the circumstances to act.
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3.2.
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Instructions and Other Client Communications. The Client and the Service Provider shall comply
with security procedures agreed from time to time by the Parties or, absent such agreement, other reasonable procedures used by the Service Provider, intended to establish the origination of the communication and the authority of the person
sending any communication, including any Instruction. Depending upon the method of communication used by the Client, the security procedures may constitute one or more of the following measures: unique transaction identifiers, digital
signatures, encryption algorithms or other codes, multifactor authentication, user entitlements, schedule validation or such other measures as in use for the communication method by the Client.
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3.3.
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Authentication. Provided the Service Provider complies with the applicable security procedures,
the Client agrees that the Service Provider will be entitled to treat any communication, including any Instruction, as having originated from an Authorized Person and the Service Provider may rely and act on that communication as authorized
by the Client.
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3.4.
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Errors, Duplication. The Client shall be responsible for errors or omissions made by the Client
or the duplication of any Instruction by the Client.
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3.5.
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Incomplete or Insufficient Instructions. The Service Provider may act on Instructions where the
Service Provider reasonably believes the Instruction contains sufficient information. The Service Provider may decide not to act on an Instruction where it reasonably doubts its contents. The Service Provider will provide reasonably prompt
notice to the Client if they do not act on an instruction.
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3.6.
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Recall, Amendment, Cancellation. If the Client requests the Service Provider to recall, cancel
or amend an Instruction, the Service Provider shall, subject to applicable Law, use its reasonable efforts to comply.
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3.7.
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MIFT The Client expressly acknowledges that it is aware that a MIFT increases the risk of error,
security, privacy issues and fraudulent activities. If the Service Provider acts on a MIFT and complies with the applicable security procedures, the Client shall be responsible for any costs, losses and other expenses suffered by the Client
or the Service Provider.
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4.
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COMPLIANCE WITH LAWS; NO ADVICE
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4.1.
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Compliance. The Service Provider will comply in all material respects with all Laws applicable
to the delivery of the Services. The Client will comply in all material respects with all Laws applicable to the subject matter of the Services and the Client's receipt of the Services. Nothing in this Agreement will oblige either Party to
take any action that will breach any Law applicable to such Party, or to omit to take an action if such omission will breach any such Law. No communication from the Service Provider to the Client in connection with this Agreement or the
Services should be construed as tax or legal advice, and no such communication can be used or relied upon by the Client or any other taxpayer (I) for the purpose of avoiding tax penalties under the Internal Revenue Code or otherwise or (ii)
promoting, marketing or recommending to another party any transaction or matter discussed herein.
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4.2.
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No Fiduciary, etc. The Service Provider and its employees and Agents are not, under this
Agreement, (i) acting as a fiduciary, certified public accountant or a broker or dealer, (ii) providing investment, accounting, valuation, legal or tax advice to the Client or any other Person, or (iii) providing investment advisory,
portfolio management, risk management, depository, custodian or other services, including within the meaning of the AIFMD Regulations, to the Client or any other Person. The Service Provider shall not be required under this Agreement to
take any action that would require licensing or registration to provide any of the foregoing services or perform any of the foregoing functions. No licenses or registrations are required for Service Provider to perform the services under
this Agreement.
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4.3.
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Laws Applicable to the Client. The Service Provider assumes no responsibility for compliance by
the Client with any Laws applicable to the Client; and, notwithstanding any other provision of this Agreement to the contrary, the Service Provider assumes no responsibility for (i) monitoring or ensuring that the Client's Policies and
Procedures reflect the requirements of applicable Law or (ii) compliance by the Client or the Service Provider with the Laws of any jurisdiction other than those governing this Agreement.
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5.
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COMMUNICATIONS AND REPORTS TO CLIENT; RECORDS AND ACCESS; CONFIDENTIALITY; PUBLICITY
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5.1.
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Communications and Statements. Communications, notices and invoices from the Service Provider
may be sent or made available by electronic form and not in hard copy. The Client will notify the Service Provider promptly in writing of anything incorrect in an invoice or periodic accounting or other report with respect to the Services
(a "Report") and, in any case, within sixty (60) days from the date on which the invoice or Report is sent or made available to the Client. Nothing herein is intended to prevent the Client from notifying the Service Provider of any errors
or corrections in an invoice or Report beyond such time, provided that the Service Provider shall not be responsible for any losses caused by such delay in notification.
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5.2.
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Records and Access; Audits.
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5.2.1.
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Upon request, the Service Provider will provide its Service Organization Control ("SOC 1") report issued under the Statement on Standards for
Attestation Engagements Xx. 00 ("XXXX 00").
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5.2.2.
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The Client agrees that it shall pay such charges for (a) document collection, duplication, review and retrieval and (b) making the Service Provider personnel available for extraordinary services outside the
scope of this Agreement as the Service Provider may reasonably request in connection with audits, examinations or inspections. The Client acknowledges that such charges may include the fees and expenses of external counsel to the Service
Provider; provided that costs related to such advice from external counsel will only be borne by the Client if it relates to a special request made by the Client or for a service not part of this Agreement.
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5.2.3.
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[Omitted intentionally]
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5.2.4.
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Upon termination of this Agreement, the Service Provider may retain archival copies of records of the Client maintained by the Service Provider as part of the Services ("Client Records").
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5.3.
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Confidentiality. Responsibilities of each Party relating to the privacy and confidentiality of
information are set forth in the Confidentiality and Data Privacy Conditions attached to this Agreement as Schedule 4, and the Parties agree to the terms specified in Schedule 4.
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5.4.
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Service Provider IP. The Client acknowledges that: (i) as between the Client and the Service
Provider, the Service Provider is the owner of all Service Provider IP; and (ii) the Service Provider has the right to use Service Provider IP to perform services for other Service Provider customers (including services that are similar or
identical to those performed for the Client). Except as specifically set forth in clause 5: (a) this Agreement does not confer upon the Client any right, interest, claim, or title in or to any Service Provider IP; and (b) no license
(whether express or implied) is granted to the Client, by estoppel or otherwise, to any Service Provider IP.
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5.5.
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Client IP; Licenses. The Service Provider acknowledges that, as between the Client and the
Service Provider, the Client is the owner of all Client IP. The Client grants to the Service Provider a limited, non-exclusive, non-transferable, license to permit the Service Provider, its Affiliates and Agents, and its and their personnel
to use the Client IP during the Term of this Agreement for the purpose of providing the Services and as otherwise contemplated by the Confidentiality and Data Privacy Conditions.
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5.6.
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Service Provider Licenses.
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5.6.1.
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The Service Provider grants to the Client a limited, non-exclusive, non-transferable, non-sublicenseable license during the Term of this Agreement to permit the Client's officers, employees and Agents to access
those Service Provider Systems described in Schedule 2 via telecommunications lines solely for the purpose of allowing, and only to the extent necessary to allow, the Client to receive the Services. The Client will ensure that any use of
access to the Service Provider Systems or Software (as described below) by the Client's officers, employees or Agents is in accordance with this Agreement and the user manuals, customer bulletins and terms and conditions of use that are
related to the Service Provider Systems or the Services and created by the Service Provider from time to time ("System Documentation") and noticed to the Client. This license does
not include: (i) any right for the Client or any officer or employee of the Client to access any data on the Service Provider Systems other than Client Records; or (ii) any license to any Software, except to the extent provided in clause
5.6,2. If there is a conflict between the terms of this Agreement and the System Documentation, the System Documentation shall prevail.
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5.6.2.
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The receipt of certain Services identified in Schedule 2 may require the Client to directly access or use software that is owned by the Service Provider or licensed by the Service Provider from third parties ("Software"). The Service Provider grants to the Client a limited, non-exclusive, non-transferable, non-sublicenseable license, during the term of this Agreement, to permit the Client's
officers and employees to access and use the object code version of the Software solely for the purpose of allowing, and only to the extent necessary to allow, the Client to receive the Services. Except as authorized in writing by the Service
Provider, the Client will not (and will not permit any officer, employee or Agent of the Client to): (i) disclose or distribute any Software (in any format) to any third party; (ii) permit any third party to access or use any Software (in any
format) through any time-sharing service, service bureau, network, consortium, or other means; (iii) rent, lease, sell, sublicense, assign, or otherwise transfer its rights under the license granted in this clause 5.6.2 to any third party,
whether by operation of law or otherwise; (iv) decompile, disassemble, reverse engineer, or attempt to reconstruct or discover any source code or underlying ideas or algorithms of any Software by any means; (v) modify or alter any Software in
any manner; (vi) create derivative works based on any Software; or (vii) directly or indirectly copy any Software.
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5.6.3.
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The Client will not remove (or allow to be removed) any proprietary rights notices from any Software and will display the Software name and the names, logos, trademarks, trade names, and any copyright notices
of the Service Provider and the Service Provider's licensors, as set forth thereon or reasonably requested by the Service Provider.
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5.6.4.
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The Client will comply with all applicable use, export, and re-export restrictions and regulations with respect to any use by the Client or the Client's officers, employees or Agents of Software delivered or
made available to the Client as contemplated by this clause 5.6.
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5.6.5.
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The Service Provider reserves all rights in the Service Provider Systems and in the Software that are not expressly granted to Client in this clause 5.6.
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5.7.
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Service Data. Service Provider may provide Client with pricing and other data ("Service Data") licensed from third party suppliers, including various exchanges (collectively, "Data Suppliers”).
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5.7.1.
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Accordingly, the Client acknowledges and agrees that Service Provider is licensed to provide such data only upon the following conditions: (i) it may not be used for any purpose independent of the service
relationship established under this Service Agreement, and shall be used only internally (except, that Client may include a limited amount of Service Data (a) in fund performance reports sent to its clients relating to their actual
investments
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and to its prospective clients, (b) in prospectuses and marketing materials, and (c) in order to fulfil a legal or regulatory requirement); (ii) no other external distribution of Service Data beyond that in
clause (I) is permitted; (iii) Client will permit Data Suppliers and their affiliates reasonable access to audit Client's use of data sourced from Data Suppliers; (iv) the Data Suppliers and their affiliates shall be third-party
beneficiaries of this Agreement; and, (v) the Data Suppliers and their affiliates have no liability or responsibility to Client relating to. Client's receipt or use of the data.
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5.7.2.
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If Client engages a subadvisor to help manage certain of its funds, then, upon consent of Service Provider, such Client may distribute the Data Supplier's Service Data to such subadvisor; provided, however,
that Client must enter into a written agreement with subadvisor which requires the subadvisor to agree to the provisions set forth in clauses (i)-(v) of clause 5.7.1 above.
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5.7.3.
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In addition to the foregoing, a Data Supplier may specify other terms or limitations applicable to Client's use of their data (including Data Supplier policies {the "Data Supplier Policies")) and Client shall comply with such Policies. A Data Supplier may amend the Policies, without notice, from time to time. A Data Supplier may, in its discretion, (x) direct Service Provider to
terminate Client's receipt of its data for any or no reason with or without notice; and {y) require Client to enter into an agreement with it directly as a condition of your receipt of its data.
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5.7.4.
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The termination of a license agreement allowing Service Provider to provide the Service Data or of the Client's rights to use Service Data may adversely affect the Services, and in such event any Service
Provider obligation to provide such Service Data (or related data or reports) as part of the Services shall be terminated. In such event, the Parties shall work cooperatively and in good faith to implement alternative sources for Service
Data, subject to the Change Control Process.
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5.7.5.
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Data Suppliers make no warranties, express or implied, as to merchantability, accuracy, fitness for purpose, availability, completeness, timeliness or sequencing, or any other matter, in respect of Service Data
used by the Service Provider to provide the Services, and neither does the Service Provider.
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5.7.6.
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Data Suppliers shall have no liability whatsoever to the Client in respect of Service Data used by the Service Provider to provide the Services, and neither shall the Service Provider.
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5.7.7.
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No copyright or any other intellectual property rights in the Service Data used or provided by the Service Provider to provide the Services are transferred to the Client.
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5.7.8.
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The Client shall not use Service Data for any illegal purpose or in any manner not specifically authorized by this Agreement.
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5.7.9.
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if Client is located in Australia, Client hereby represents that it is a wholesale client within the meaning of s761G or s761GA of the Australian Corporations Act.
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5.8.
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Use of Name. Without the written consent of the Client, the Service Provider may use the name of
the Client only (i) to sign any necessary letters or other documents for and on behalf of the Client incident to the delivery of the Services and (ii) in client lists used for marketing purposes. Subject to the foregoing, neither Party will
publicly display the name, trade xxxx or service xxxx of the other Party or its Affiliates without the prior written approval of the other Party.
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5.9.
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Communications to Investors. Without the written approval of the Service Provider, the Client
will not describe the Services or the terms or conditions of this Agreement in any communication
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Page 7
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or document intended for distribution to any Investor in connection with the offering or sale by the Client of securities, products or services (an "Offering Document"); nor will the Client amend any such references to the Service Provider or the terms or conditions of this Agreement in any Offering Document that has been previously approved by the
Service Provider without the Service Provider's written approval. The Service Provider will not unreasonably withhold, condition or delay any of the foregoing requested approvals, provided that the Client include, upon request by the
Service Provider, reasonable notices describing those terms of this Agreement relating to the Service Provider and its liability and the limitations thereon. If the Services include the distribution by the Service Provider of notices or
statements to Investors, the Service Provider may, upon advance notice to the Client, include reasonable notices describing those terms of this Agreement relating to the Service Provider and its liability and the limitations thereon; if
Investor notices are not sent by the Service Provider but rather by the Client or some other Person, the Client will reasonably cooperate with any request by the Service Provider to include such notices. The Client shall not, in any
communications with Investors, whether oral or written, make any representations to its Investors stating or implying that the Service Provider is providing valuations with respect to the Client's securities, products or services, verifying
any valuations, or verifying the existence of any assets in connection with the Client's securities, products or services.
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6.
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SCOPE OF RESPONSIBILITY
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6.1.
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Standard of Care. The Service Provider will perform its obligations with reasonable care as
determined in accordance with the standards and practices of professionals for hire providing services similar to the Services in the jurisdiction(s) in which the Service Provider performs services under this Agreement (the "Standard of Care").
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6.2.
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Responsibility for Losses. Notwithstanding any other provision of this Agreement to the contrary (including clause
6.1), (i) the Service Provider will not be liable to the Client for any damages or losses save for those resulting from the willful misconduct, fraud or—gross negligence of the Service Provider or any Service Provider Agent as a result of
the performance or non-performance by the Service Provider of its obligations and duties hereunder, and (ii) the Service Provider's liability will be subject to the limitations set forth in this Agreement.
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6.3.
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Limitations on Liability.
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6.3.1.
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Upon the actual knowledge by any Party of the occurrence of any event relating to the provision of Services hereunder which may cause any loss, damage or expense to the Party, the Party shall as soon as
reasonably practicable (i) notify the other Party of the occurrence of such event and (ii) use its commercially reasonable efforts to take reasonable steps under the circumstances to mitigate or reduce the effects of such event and to avoid
continuing harm to it.
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6.3.2.
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The Client understands and agrees that (i) the obligations and duties of the Service Provider under this Agreement are not obligations or duties of any other member of the Citi Organization and (ii) the rights
of the Client with respect to the Service Provider extend only to the Service Provider and, except as provided by applicable Law, do not extend to any other member of the Citi Organization. For the avoidance of doubt, exculpatory references
to the Service Provider in this clause 6 shall be deemed to include references to the directors, officers, employees, Agents and delegates of the Service Provider.
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6.3.3.
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The Service Provider will not be liable for any failure to provide any Service in the following circumstances: (i) if any Dependency set forth in Schedule 3 is not met through no fault of the Service
Provider; (ii) if the failure is at the request or with the consent of an Authorized Person; (iii) if any Law to which the Service Provider is subject prohibits or limits the performance of the Services; or (iv) if the failure results from a
Force Majeure Event.
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6.3.4.
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Subject to compliance by the Service Provider with its obligations in clause 3.2 with respect to authentication of Instructions, the Service Provider (i) shall have no responsibility to review, confirm or
otherwise assume any duty with respect to the accurateness or completeness of any Instruction or any other information it receives from or on behalf of the Client or any Agent of the Client and (ii) shall be without liability for any loss or
damage suffered by the Client or any of the Client's Investors as a result of the Service Provider's reliance on and utilization of any such Instruction or other such information.
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6.3.5.
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The Service Provider will not be responsible for the errors or failures to act of, or the inaccuracy or incompleteness of, any data supplied by, and have no obligation to review any data supplied by, any third
party, including, without limitation, (i) Data Suppliers, (ii) clearance or settlement systems, (iii) any Persons who possess information about the Client or its Investors reasonably necessary for the Service Provider to provide the Services
and with whom the Service Provider is required to engage or contract in order to receive such information, including, without limitation, investment advisers, intermediaries, or custodians that service the Client or any Investors and their
respective Agents and employees; and (iv) third parties engaged by the Service Provider at the request of the Client to provide services to or for the benefit of the Client or its Investors, and such third parties will not be considered
Agents of the Service Provider for purposes of this Agreement.
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6.3.6.
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About any matter related to the Services, the Service Provider may seek advice from counsel or independent accountants of its own choosing (who may provide such services to either Party). Costs related to such
advice from external counsel or independent accountants will only be borne by the Client if it relates to a special request made by the Client or for a service not part of this Agreement. The Service Provider will not be liable if it relies
on advice of counsel or independent accountants chosen or approved by the Client or chosen by the Service Provider with reasonable care.
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6.3.7.
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The Service Provider (i) shall have no responsibility for the management of the investments or any other assets of the Client or its Investors, and (ii) except as specifically set forth in Schedule 2, shall
have no obligation to review, monitor or otherwise ensure compliance by the Client with the investment restrictions (regardless of whether such restrictions are imposed on the Client under applicable Law), policies, restrictions or guidelines
applicable to the Client or any other term or condition of the Organic Documents, Offering Document, or Policies and Procedures.
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6.3.8.
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The Client acknowledges that the Service Provider (i) does not provide valuations with respect to discrete securities in which the Client may invest, and does not value the Client's products or services, except
that to the extent specifically set forth in Schedule 2 the Service Provider may calculate the value of a portfolio of securities and financial assets owned by the Client, (ii) does not verify any valuations provided to it by the Client or
any other Person, and does not verify the existence of any assets in connection with Client's securities, products or services but instead relies exclusively on information about valuations and the existence of assets provided to it by the
Client, Data Suppliers and other third parties, and (iii) shall have no responsibility and shall be without liability for any loss or damage arising with respect to valuation or verification of discrete assets.
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6.3.9.
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Except As Expressly Provided In This Agreement, The Service Provider Hereby Disclaims All Representations And Warranties, Express Or Implied, Made To The Client Or Any Other Person In Connection With The
Services And This Agreement, Including, Without Limitation, Any Warranties Regarding Quality, Suitability Or Otherwise (Irrespective Of Any Course Of Dealing, Custom Or Usage Of Trade), Of Any Services Or Any Goods Provided Incidental To
Services Provided Under This Agreement. The Client Acknowledges That It Has Not Relied On Any Oral Or Written Representation Made By The Service Provider Or Any Person On Its Behalf Other Than Those Contained In This Agreement.
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6.3.10.
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Notwithstanding anything in this Agreement to the contrary, the cumulative liability of the Service Provider to the Client for all losses, claims, suits, controversies, breaches or damages for any cause
whatsoever arising out of or related to this Agreement, and regardless of the form of action or legal theory, shall not exceed the amount paid in fees by the Client (or, if applicable, by or on behalf of a Fund of the Client) in the
twelve-month period preceding the date on which such loss, claim or damage occurred.
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6.4.
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Mutual Exclusion of Consequential Damages. Except for any liquidated damages agreed by the
parties related to an unexcused termination of this agreement and except for the Client's indemnification obligations, (i) each party shall be liable to the other party only for direct damages for any liability arising under this Agreement
and (ii) under no circumstances shall any party be liable to any other party for special or punitive damages, or indirect, incidental, consequential loss or damage, or any loss of profits, goodwill, business opportunity, business revenue or
anticipated savings in relation to this Agreement, whether arising out of breach of contract, tort (including negligence) or otherwise, regardless of whether the relevant loss was foreseeable or the party has been advised of the possibility
of such loss or damage, or that such loss was in contemplation of the other party.
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7.
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INDEMNITY
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7.1.
|
Indemnity from Client. The Client will indemnify the Service Provider, its affiliates and its
and their respective officers, directors, employees and representatives (each a " Service Provider Indemnitee") for, and will defend and hold each Service Provider Indemnitee
harmless from, all losses, costs, damages and expenses (including reasonable legal fees) incurred by the Service Provider or such person in any action or proceeding between the Service Provider and the Client or between the Service Provider
and any third party (including any Investor, or the U.S. Internal Revenue Service or any other competent regulatory, prosecuting, tax or governmental authority in any jurisdiction, domestic or foreign) arising from or in connection with the
performance of this Agreement (each referred to as a "Loss"), imposed on, incurred by, or asserted against the Service Provider in connection with or arising out of the following:
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7.1.1.
|
This Agreement, except any Loss resulting from the willful misconduct, fraud or gross negligence of the Service Provider or any of its Agents, in each case in connection with the Services; or
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7.1.2.
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Any alleged untrue statement of a material fact contained in any Offering Document of the Client or arising out of or based upon any alleged omission to state a material fact required to be stated in any
Offering Document or necessary to make the statements in any Offering Document not misleading, unless such statement or omission was made in reliance upon, and in conformity with, information furnished in writing to the Client by the Service
Provider specifically for use in the Offering Document; or
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7.1.3.
|
Any act or omission of the Client, its Agents, or any Data Suppliers whose data, including records, reports and other information, including but not limited to information with respect to valuation and
verification of assets, the Service Provider must rely upon in performing its duties hereunder, or as a result of acting upon any Instructions of the Client.
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In particular, to the extent the Service Provider or any of its Affiliates pays or has paid from its own funds or is or becomes required to pay any amount that should have been, but was not deducted and withheld from a
payment to the Client or to any Investor, or to or from the Client's or any Investor's account, or any account with respect to any requirement under the Code and Treasury Regulations, any IGA, or any related law or guidance interpreting or
implementing the same, the Client shall indemnify Service Provider or the relevant Affiliate in respect of such amount, plus any interest and penalties thereon. The Client understands that the Service Provider is not required to contest any demand
made by the U.S. Internal Revenue Service or any other governmental authority for such payment.
Page 10
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7.2.
|
Indemnity from Service Provider. Subject to the limitations in clause 6.3.10, the Service Provider will indemnify the Client, its affiliates and its and their respective officers, directors, employees and
representatives (each, a "Client Indemnitee") for, and will defend and hold each Client Indemnitee harmless from, all losses, costs, damages and expenses (including reasonable legal fees) incurred by the Client or such person in any action or
proceeding between the Client and the Service Provide or between the Client and any third party (including any investor, or the U.S. Internal Revenue Service or any other competent regulating, prosecuting, tax or governmental authority in any
jurisdiction, domestic or foreign) arising from or in connection with the performance of this Agreement (each referred to as a "Loss"), imposed on, incurred by, or asserted against the Client in connection with or arising out of the
following:
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|
7.2.1.
|
This Agreement, except any Loss resulting from the willful misconduct, fraud or negligence of the Client or a Client Indemnitee; or
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|
7.2.2.
|
Any act or omission of the Service Provide or its Agents in connection with this Agreement.
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7.2.3.
|
The Service Provider understands that the Client is not required to contest any demand made by the U.S. Internal Revenue Service or any other governmental authority for such payment.
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7.3.
|
Notification, Participation; Indemnitor Consent. Upon the assertion of a claim for which the
indemnifying party may be required to indemnify any claiminig party, the claiming party must promptly notify the indemnifying party of such assertion, and will keep the indemnifying party advised with respect to all developments concerning
such claim; provided, that any delay or failure by the claiming party in providing such notification shall only affect the indemnifying party's obligations and duties hereunder to the extent the indemnifying party is materially
prejudiced as a result of such delay or failure. The claiming party shall have the option to participate in the defense of such claim, or to defend against said claim, at its own expense.
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Notwithstanding the foregoing,
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(i)
|
subject to clause (ii) below, the claiming party may assume the defense of any claim at any time upon notice to the indemnifying party if (a) any such claim arises from a regulatory examination, investigation,
inquiry or other regulatory action, proceeding or review of the claiming party, (b) if the claiming party determines that any such claim jeopardizes the claiming party's status under any registration or other Governmental Approval, (c) such
claim is made by another client of the claiming party, or (d) such claim seeks injunctive or other, similar relief that would require the claiming party to take or refrain from taking any action; and
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(ii)
|
under no circumstance shall any claiming party confess any claim or make any compromise of any claim in which the indemnifying party may be required to indemnify the claiming party, except with the other
indemnifying party's prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed), and the indemnifying party shall have no obligation or duty with respect to any such confession or compromise that is made
without such consent.
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8.
|
FEES AND EXPENSES
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|
8.1.
|
Fee Schedule. The Client will pay all fees, expenses, charges and obligations incurred from
time to time in relation to the Services in accordance with the terms of the Fee Schedule, together with any other amounts payable to the Service Provider under this Agreement. For the avoidance of doubt, the Service Provider will not be
responsible for the fees or expenses of, and the Client will reimburse the Service Provider for any advances or payments made by the Service Provider for the benefit of the Client incident to the proper performance of the Services listed
or described in
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Page 11
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|
the Fee Schedule. If Service Changes are necessitated by changes in applicable Law with respect to the Client, Citi reserves the right to increase its fees consistent with the Service Change plan
agreed by the Parties as contemplated by the Change Control Process or, in the absence of such a Service Change plan, in a fair and equitable manner taking into account the number of other Service Provider clients affected by such
change. Except as set forth in the Fee Schedule, Fees and other amounts due to the Service Provider under this Agreement shall be due within ten (10) Business Days of the receipt by the Client of the invoice therefor.
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8.2.
|
Taxes. The Service Provider shall not be liable for any taxes, withheld amounts, assessments or
governmental charges that may be levied or assessed on any basis whatsoever in connection with the Client or any Investor, excluding taxes, if any, assessed against the Service Provider related to its income or assets. The foregoing clause
is subject to any more detailed provisions related to sales, use, excise, value-added, gross receipts, services, consumption and other similar transaction taxes related to the Services or this Agreement set forth in the Fee Schedule (if
any).
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9.
|
REPRESENTATIONS
|
|
9.1.
|
General. Each Party represents at the date this Agreement is entered into and any Service is
used or provided that:
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|
9.1.1.
|
It is duly organized and in good standing in every jurisdiction where it is required so to be;
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|
9.1.2.
|
It has the power and authority to sign and to perform its obligations under this Agreement;
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|
9.1.3.
|
This Agreement is duly authorized (including, if the Client has a board of directors, by such board of directors) and signed by an authorized officer of such Party and is its legal, valid and binding
obligation, subject to bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting the rights and remedies of creditors and secured parties generally;
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|
9.1.4.
|
Any consent, authorization or instruction required in connection with its execution and performance of this Agreement has been provided by any relevant third party;
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|
9.1.5.
|
Any act required by any relevant Governmental Authority to be done in connection with its execution and performance of this Agreement has been or will be done (and will be renewed if necessary); and
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|
9.1.6.
|
The performance by such Party of its obligations under this Agreement will not violate or breach any applicable Law or contract binding on such Party.
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The Service Provider's representations and warranties in relation to clauses 9.1.2, 9.1.4 and 9.1.6 above, as relevant to the provision by Service Provider
of Service Data under this Agreement, are subject to clause 5.7 of this Agreement.
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9.2.
|
Client. The Client also represents at the date this Agreement is entered into and any
Service is used or provided that:
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|
9.2.1.
|
Where it acts as an agent on behalf of any of its own Investors, whether or not expressly identified to the Service Provider from time to time, any such Investors will not, by virtue of the services
provided hereunder by the Service Provider to the Client, be customers or indirect customers of the Service Provider;
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9.2.2.
|
The Client's decision to retain the Service Provider is not conditioned on or influenced by the amount of assets that any Affiliate of the Service Provider or any customers of the Service Provider or
such Affiliates may from time to time invest in or through the Client;
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Page 12
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9.2.3.
|
Without prejudice to any more specific obligations set forth in this Agreement, the Client has obtained all consents from Investors required in connection with the engagement by the Client of the Service
Provider to provide the Services;
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|
9.2.4.
|
It is in compliance with all Laws applicable to it, including, but not limited to, all securities, tax and commodities laws; and
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|
9.2.5.
|
Its entry into this Agreement is not intended to constitute a delegation of any of the functions described in clause 4.2 of this Agreement.
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|
9.3.
|
Service Provider. The Service Provider also represents at the date this Agreement is entered
into and any Service is used or provided:
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|
9.3.1.
|
it has commercially reasonable data security and business continuity controls and plans; and
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|
9.3.2.
|
It has access to the necessary facilities, equipment, and personnel to perform its duties and obligations under this Agreement.
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10.
|
TERM AND TERMINATION
|
|
10.1.
|
Term. This Agreement will begin on the Effective Date and have an initial term of _______ years
from the Effective Date ("Initial Term") and will thereafter continue in effect indefinitely unless it is terminated pursuant to other provisions in clause 10. The Initial Term and
any subsequent period shall be the "Term" of this Agreement.
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|
10.2.
|
Termination. Subject to clause 10.3:
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|
10.2.1.
|
Either Party may terminate this Agreement, with or without cause, but only after the expiration of the Initial Term, by giving the other Party ninety (90) days' written notice.
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|
10.2.2.
|
Either Party may terminate this Agreement with cause on at least thirty (30) days' written notice to the other Party if the other party has materially breached any of its obligations hereunder (including the
payments by the Client of the fees and expenses set forth in the Fee Schedule and including Service Provider's failure to timely and accurately provide the Services set forth in Schedule 2); provided, however, that (I) the
termination notice will describe the breach; (II) no such termination will be effective if, with respect to any breach that is capable of being cured prior to the date set forth in the termination notice, the breaching Party has reasonably
cured such breach; and (iii} subject to applicable Law, no such thirty (30) day notice period shall be required in the event the other Party is insolvent or has submitted a voluntary petition for administration.
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|
10.2.3.
|
This Agreement may be further terminated by either Party immediately in the event of:
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|
(i)
|
the winding up of or the appointment of an examiner or receiver or liquidator to the other party or on the happening of a like event whether at the direction of an appropriate regulatory agency or court of
competent jurisdiction or otherwise; or
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(ii)
|
either Party no longer being permitted or able to perform its obligations under this Agreement pursuant to applicable law or regulation.
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|
10.2.4.
|
This Agreement may be terminated by the Service Provider immediately based on the Service Provider's reasonable opinion that the Client has violated its obligation under clause 4.1 with respect to
compliance with Law.
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Page 13
|
10.3.
|
Termination-related Obligations. Related to termination of this Agreement:
|
|
10.3.1.
|
If the Client has terminated this Agreement without cause (other than as set forth in clause 10.2.1) or if the Service Provider has terminated this Agreement pursuant to clauses 10.2.2-10.2.4, the Client will
pay the Service Provider as liquidated damages for such default, an amount equal (i) to the Monthly Fee payable by the Client (or, if no such Monthly Fee is specified in the Fee Schedule, the average monthly fees payable by the Client for the
preceding six (6) months) multiplied by (ii) the number of months remaining in the Initial Term as of the effective date of such termination ("Liquidated Damages"). In the event that
the Client is, in part or in whole, liquidated, dissolved, merged into a third party, acquired by a third party, or involved in any other transaction that materially reduces the assets and/or accounts serviced by the Service Provider pursuant
to this Agreement, the liquidated damages provision set forth above will apply, and will be adjusted rateably if any of the events described above is partial. For the purposes of the preceding sentence, assets that are acquired by another
firm and remain as assets that are serviced by the Service Provider shall not be included in the calculation for Liquidated Damages. Any liquidated damages amount payable to the Service Provider will be payable on or before the date of the
event that triggers the payment obligation. Inasmuch as a default by the Client will cause substantial damages to the Service Provider and because of the difficulty of estimating the damages that will result, the Parties agree that the
Liquidated Damages is a reasonable forecast of probable actual loss to the Service Provider and that this sum is agreed to as liquidated damages and not as a penalty.
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10.3.2.
|
Upon termination, the Service Provider will, at the expense and written direction of the Client, transfer to the Client or any successor service provider(s) to the Client copies of all Client Records, subject
to the payment by the Client of unpaid and undisputed amounts due to the Service Provider hereunder, including any Liquidated Damages. If by the termination date the Client has not given written Instructions to deliver the Client Records, the
Service Provider will keep the Client Records until the Client provides such Instructions to deliver the Client Records, provided that the Service Provider will be entitled to charge the Client then-standard fees for maintaining the Client
Records, and the Service Provider shall have no obligation to keep the Client Records beyond six (6) months after the termination date. The Service Provider will provide no other services to or for the benefit of the Client or any successor
service provider (and will not be responsible for the fees, charges or expenses of any successor service provider) in connection with the termination of this Agreement unless specifically agreed in writing by the Service Provider or as set
forth in Schedule 2 or the Fee Schedule.
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10.4.
|
Surviving Terms. The rights and obligations contained in clauses 2.5, 2.9, 5.1, 5.3 (to the
extent set forth in the CDPC), 6, 7, 8, 10.3, 10.4, 11 and 12 of this Agreement will survive the termination of this Agreement.
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11.
|
GOVERNING LAW AND JURISDICTION
|
|
11.1.
|
Governing Law. This Agreement will be governed by and construed in accordance with the
internal laws (and not the laws of conflict) of the State of New York.
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|
11.2.
|
Arbitration. To the extent permitted by applicable law, each Party agrees that any controversy
arising out of or relating to this Agreement or the Services provided hereunder, shall be resolved by arbitration conducted only at the American Arbitration Association ("AAA")
(even though neither party hereto may be a AAA member). Should any dispute be arbitrated, judgment upon any award rendered by the arbitrators in such proceeding may be entered in any state or federal court of competent jurisdiction,
including, without limitation, such court located in the Borough of Manhattan, New York City.
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Page 14
|
11.3.
|
Sovereign Immunity. Each Party irrevocably waives, with respect to itself and its revenues and
assets, all immunity on the grounds of sovereignty or similar grounds in respect of its obligations under this Agreement.
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12.
|
MISCELLANEOUS
|
|
12.1.
|
Entire Agreement; Amendments. This Agreement consists exclusively of this document, together
with any schedules, exhibits, and annexes, and supersedes any prior agreement related to the subject matter hereof, whether oral or written. Except as specified in this Agreement, this Agreement may only be modified by written agreement of
the Client and the Service Provider, provided that an affiliate of the Client may join this Agreement as a new Client upon the execution by such new Client and the Service Provider of a mutually agreed, written joinder, without the
requirement that all then-current Clients execute such joinder. Any modifications to this Agreement shall be set forth in consecutive, numbered amendments.
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|
12.2.
|
Severability. If any provision of this Agreement is or becomes illegal, invalid or unenforceable
under any applicable law, the remaining provisions will remain in full force and effect (as will that provision under any other law).
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|
12.3.
|
Waiver of Rights. Subject to clause 5.1, no failure or delay of the Client or the Service
Provider in exercising any right or remedy under this Agreement will constitute a waiver of that right. Any waiver of any right will be limited to the specific instance. The exclusion or omission of any provision or term from this Agreement
will not be deemed to be a waiver of any right or remedy the Client or the Service Provider may have under applicable law.
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|
12.4.
|
Recordings. The Client and the Service Provider consent to telephonic or electronic recordings
for security and quality of service purposes and agree that either may produce telephonic or electronic recordings or computer records as evidence in any proceedings brought in connection with this Agreement.
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|
12.5.
|
Assignment. No party may assign or transfer any of its rights or obligations under this
Agreement without the other's prior written consent, which consent will not be unreasonably withheld or delayed; provided that the Service Provider may make such assignment or transfer to (i) an Affiliate, (ii) a successor pursuant to a
merger, reorganization, consolidation or sale, or (iii) an entity that acquires all or a substantial portion of the Service Provider's assets or business that are used to provide the Services.
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|
12.6.
|
Headings. Titles to clauses of this Agreement are included for convenience of reference only
and will be disregarded in construing the language contained in this Agreement.
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|
12.7.
|
Counterparts. This Agreement may be executed in several counterparts, each of which will be an
original, but all of which together will constitute one and the same agreement.
|
|
12.8.
|
Third Party Beneficiaries or Joint Venture. Except for lndemnitees contemplated by clause 7 or
as set forth in clause 5.7.1, there are no third party beneficiaries to this Agreement. This Agreement does not create a joint venture or partnership between the Parties.
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|
12.9.
|
Certain Communications. The Client hereby acknowledges that if it has requested the delivery
of Reports, Client Records and other information processed and/or maintained by the Service Provider hereunder in an unencrypted manner, it (i) accepts the risk that such delivery means may expose such information to disclosure through
media and hardware that are not within the control of the Service Provider during the delivery process and (ii) agrees that in such circumstances neither the Service Provider nor its Affiliates or Agents shall be responsible if a Person
other than the intended recipient intercepts, discovers or acts upon such a communication. Upon notice, the Service Provider may require delivery of documents referenced above in an encrypted manner.
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Page 15
[SIGNATURE PAGE FOLLOWS]
Page 16
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by
their respective officers thereunto duly authorized.
SERVICE PROVIDER
CITI FUND SERVICES OHIO, INC.
By: /s/ Xxxxxxx Xxxxx
Name: Xxxxxxx Xxxxx
Title: Vice President
Date: 10-7-2020
CLIENT
XXXXX INVESTMENT MANAGEMENT, INC.
By: /s/ Xxxxx Xxxxx
Name: Xxxxx Xxxxx
Title: Vice President
Date: 10-5-2020
Page 17
Schedule 1 to Services Agreement
Definitions
"Affiliate" means, with respect to any Person, any other Person that is controlled by, controls, or is under common
control with such Person; for purposes hereof, "control" of a Person means (i) ownership of, or possession of the right to vote, more than 25% of the outstanding voting equity of that person or (ii) the right to control the appointment of the board of
directors, management or executive officers of that person.
"Agent" means any administrative or other service provider selected and used by a Party in connection with carrying out
its obligations under this Agreement, whether or not such person would be deemed an agent under principles of any applicable law.
"Agreement" means the Services Agreement to which this Schedule 1 is attached, and all other schedules,
exhibits and annexes thereto, as they may be properly amended from time to time.
"AIFMD Regulations" means applicable regulations adopted from time to time pursuant to Alternative Investment Fund
Manager Directive 694/2014 of the European Parliament, as amended from time to time.
"AML" has the meaning set forth in clause 2.8 of this Agreement.
"Authorized Person" means the Client or any Person that the Service Provider believes in good faith to be authorized by
the Client to act on its behalf in the performance of any act, discretion or duty under this Agreement (including, for the avoidance of doubt, any officer or employee of such Person) and as notified to the Service Provider in a notice reasonably
acceptable to the Service Provider.
"Business Day" has the meaning set forth in Schedule 2.
"Change Control Process" has the meaning set forth in clause 2.2 of this Agreement.
"Citi Organization" means Citigroup, Inc. and any company or other entity of which Citigroup, Inc. is directly or
indirectly a shareholder or owner. For purposes of this Agreement, each branch of Citibank, N.A. will be a separate member of the Citigroup Organization.
"Client" has the meaning set forth in the recitals to this Agreement.
"Client IP" means: (i) all Confidential Information of the Client, (ii) Investor lists and all information related to
Investors furnished to or maintained by the Service Provider in connection with this Agreement, (iii) the unique investment methods utilized by a Client and the identities of the portfolio holdings at any time and from time to time of the Client, and
(iv) all Intellectual Property Rights of the Client (whether owned, controlled, or licensed by the Client), excluding any architecture, structures, code, data, elements, formats, or Intellectual Property Rights that: (A) are developed by or on behalf
of the Service Provider based on written requirements, settings or direction given by the Client; and (B) are embodied in the Service Provider Systems or the Services.
"Client Records" has the meaning set forth in clause 5.2 of this Agreement.
"Confidential Information" has the meaning assigned thereto in the Confidentiality and Data Privacy Conditions.
"Confidentiality and Data Privacy Conditions" or "CDPC' means the confidentiality and data privacy terms attached to
this Agreement as Schedule 4.
"Data Suppliers" has the meaning set forth in clause 5.7 of this Agreement.
Schedule 1 to Services Agreement
Page 1
"Dependencies" has the meaning set forth in Schedule 3 to this Agreement.
"Effective Date" means the date first set forth on page 1 of this Agreement.
"Fee Schedule" means Schedule 5 of this Agreement.
"Force Majeure Event" means any event due to any cause beyond the reasonable control of the Service Provider or, as
applicable, any Agent of the Service Provider, such as unavailability of communications systems or Service Data, sabotage, fire, flood, explosion, acts of God, civil commotion, strikes or industrial action of any kind, riots, insurrection, war or acts
of government, or suspension or disruption of any relevant stock exchange or securities clearance system or market; provided that a Force Majeure event will not include any event to the extent that the Service Provider has been able to continue its
normal operations pursuant to its business continuity plan.
"Fund" means a separate portfolio or series of the Client.
"Governmental Authority" means any domestic or foreign regulatory agency, court, other governmental body or
self-regulatory agency with jurisdiction over a Party.
"Indemnitee" has the meaning set forth in clause 7.1 of this Agreement
"Initial Term" has the meaning set forth in clause 10.1 of this Agreement.
"Instructions" means any and all instructions (including approvals, consents and notices) received by the Service
Provider from, or reasonably believed by the Service Provider to be from, any Authorized Person, including any instructions communicated through any manual or electronic medium as provided in this Agreement.
"Intellectual Property Rights" means all trade secrets, patents and patent applications, trade marks (whether
registered or unregistered and including any acquired goodwill), service marks, trade names, business names, internet domain names, e-mail address names, copyrights (including rights in computer software), moral rights, database rights, design rights,
rights in know-how, rights in confidential information, rights in inventions (whether patentable or not), rights in business processes, and all other intellectual property and proprietary rights (whether registered or unregistered, and any application
for the foregoing), and all other equivalent or similar rights which may subsist anywhere in the world
"Investor" means any Person to whom the Client sells securities, products or services the sale or servicing of which
are supported by the Services provided under this Agreement.
"Laws" means any domestic or foreign statutes, rules and regulations of any Governmental Authority and applicable
judicial or regulatory interpretations thereof.
"Liquidated Damages" has the meaning set forth in clause 10.3.1 of this Agreement.
"Loss" has the meaning set forth in clause 7.1 of this Agreement.
"MIFT” means a manually initiated Instruction to effect a transfer of assets owned by the Client or an Investor.
"Monthly Fee" has the meaning set forth in the Fee Schedule.
"OFAC' has the meaning set forth in clause 2.8 of this Agreement.
"Offering Document" has the meaning set forth in clause 5.9 of this Agreement.
Schedule 1 to Services Agreement
Page 2
"Organic Documents" means, for any incorporated or unincorporated entity, the documents pursuant to which the entity
was formed as a legal entity, as such documents may be amended from time to time.
"Parties" means the Client and the Service Provider.
"Person" means any natural person or incorporated or unincorporated entity.
"Policies and Procedures" means the written policies and procedures of the Client in any way related to the Services,
including any such policies and procedures contained in the Organic Documents and the Offering Documents.
"Report" has the meaning set forth in clause 5.1 of this Agreement.
"Service Change" has the meaning set forth in clause 2.2 of this Agreement.
"Service Data" has the meaning set forth in clause 5.7 of this Agreement.
"Service Provider IP" means: (i) all Confidential Information of Service Provider; (ii) all Intellectual Property
Rights of the Service Provider (whether owned, controlled, or licensed by Service Provider); (iii) the Service Provider Systems; (iv) all modifications to the Service Provider Systems regardless of whether the Client or a Client Affiliate paid for any
such modifications; and (v) all other ideas, concepts, know-how, works of authorship, inventions, and intellectual property created or conceived by the Service Provider.
"Service Provider Systems" means the systems owned or operated by the Service Provider in providing any Services
hereunder, including all hardware, software and methods utilized in the operation and provision of Service Provider Systems, all Intellectual Property Rights of the Service Provider, all ancillary programs and documentation utilized in the provisioning
of any Services, and all modifications thereto.
"Services" means the services set forth in Schedule 2.
"SOC 1" has the meaning set forth in clause 5.2 of this Agreement.
"Software" has the meaning set forth in clause 5.6.2 of this Agreement.
"SSAE 18" has the meaning set forth in clause 5.2 of this Agreement.
"Standard of Care" has the meaning set forth in clause 6.1 of this Agreement.
"Start-Up" means the activities (including changes to Service Provider Systems and operating environment) and
information required so that the Services may be performed by the Service Provider.
"System Documentation" has the meaning set forth in clause 5.6.1 of this Agreement.
"Term" means the period between the Effective Date and the date this Agreement is terminated.
Schedule 1 to Services Agreement
Page 3
Schedule 2 to Services Agreement – Services
Appendix A -- Fund Administration Services provided by CFSO
Service Provider shall provide the Services listed on this Schedule 2 to the Client, subject to the terms and conditions of the Agreement (including the Schedules).
|
1.
|
Services
|
|
a
|
Financial Reporting and SEC Filings:
|
|
i.
|
For each Fund, prepare for review and approval of the Client drafts of (i) the annual report to Shareholders and (ii) the semi-annual report. Subject to review and approval by the Client, file the final
versions thereof on Form N-CSR with the SEC.
|
|
ii.
|
Coordinate and prepare, with the assistance and approval of the Trust's investment adviser, counsel, officers and independent auditors, drafts of communications to shareholders of record of the Trust
("Shareholders"), including the annual report to Shareholders and the semi-annual report to Shareholders; prepare and file the final certified versions thereof on Form N-CSR.
|
|
iii.
|
Assist with the layout and printing of the Funds' prospectuses, semi-annual and annual reports.
|
|
iv.
|
Provide support for the Annual Prospectus Update and other Prospectus updates throughout the year as necessary, including, but not limited to, providing the required financial information for the filings.
|
|
v.
|
File the Funds' Form N-17f-2 as prepared by the Funds' independent auditor.
|
|
vi.
|
Prepare and file the Fund's Form N-CEN annually, starting with the 04/30/21 period.
|
|
vii.
|
Prepare and file all required notices pursuant to Rule 24f-2
|
|
viii.
|
Prepare and file holdings reports on Form N-PORT with the SEC, starting with the 04/30/21 period, as required at the end of each month and the first and third quarter SOls for website and aabbreviated footnotes
for NPORT Part F
|
|
ix.
|
Coordination with the print vendor for final printing of the annual and semi-annual reports; and
|
|
x.
|
Provide the assurance binder on a quarterly basis just prior to the quarterly N-CSR
|
|
xi.
|
Assistance, as appropriate with respect to the payment of dividends and other distributions to Shareholders that have been approved by the client
|
|
xii.
|
Support the Trust's Principal Financial Officer with Treasury Services including but not limited to; act as the financial liason between the board and the Audit Committee, resolving audit comments, obtaining
applicable SOC-1 reports and other documentation, and administering best practices on Accounting Issues
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Schedule 2 to Service Agreement
Page 1
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b
|
Expense Payments and Budgeting:
|
|
i.
|
Calculate contractual Fund expenses and make disbursements for the Funds, including trustee and vendor fees and compensation and annual reporting of such on IRS Forms 1099-MISC and 1096, as applicable.
Disbursements shall be subject to review and approval of an Authorized Person and shall be made only out of the assets of the applicable Fund.
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|
ii.
|
Prepare an annual projection of the Funds' non-asset based expense accruals prior to the beginning of each fiscal year of each Fund and monitor actual and accrued expenses.
|
|
iii.
|
Review of expense ratios and fee waiver analysis
|
|
c
|
Tax Services:
|
|
i.
|
Prepare informational schedules for use by the Client's auditors in connection with such auditor's preparation of the Client's tax returns
|
|
ii.
|
Review calculation of declaration of income / capital gain distributions to ensure compliance with income/excise tax distribution requirements
|
|
iii.
|
Monitor wash sales two times per year (excise period and fiscal year end)
|
|
iv.
|
Coordinate with independent auditors concerning the Client's regular annual audit
|
|
v.
|
Consult on tax implications of strategic business plans and complex securities.
|
|
vi.
|
Ensure all required tax disclosures are included in the financial statements and NPORT Part F
|
|
vii.
|
Production and delivery of fund level 1099 reportable items to the Client's Transfer Agent including preparation and distribution of year-end shareholder tax letters.
|
|
viii.
|
Production of excise and fiscal year end estimates
|
|
d
|
Portfolio Compliance:
|
|
i.
|
Assist the Client in developing appropriate portfolio compliance procedures for each Fund to monitor compliance with the 1940 Act and other relevant regulations, and provide compliance monitoring services and
certifications with respect to such procedures as reasonably requested by the Client, provided that such compliance must be determinable by reference to the Fund 's accounting records.
|
|
1
|
Compliance monitoring services include comprehensive compliance monitoring tests and breach notifications for various restrictions, including Rule 2a-7 money market regulations, credit quality, diversification,
and concentration.
|
|
ii.
|
Monitor and advise the client and the Funds on their regulated investment company status under the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder
|
Schedule 2 to Service Agreement
Page 2
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iii.
|
Assist the Client with portfolio compliance monitoring in accordance with the Liquidity Risk Management Rule 22e-4(b) including:
|
|
1
|
Daily liquidity classifications of portfolio securities held by the Fund;
|
|
2
|
Daily monitoring of compliance with the Fund's established Highly Liquid Investment Minimum (HLIM);
|
|
3
|
Daily monitoring of compliance with the Fund's 15% illiquid holdings maximum; and
|
|
4
|
Monthly liquidity classification of portfolio securities on Form N-PORT effective December 1, 2019
|
|
5
|
Preparation and filing of form N-LIQUID, as needed
|
|
iv.
|
Management and Board reporting can be supplied as needed to support monitoring of the funds against prospectus guidelines
|
|
e
|
Performance Reporting:
|
|
i.
|
Perform return calculations on these agreed upon frequencies ; 1-, 3-, 5-, 10-, 20-, 30- years, Monthly, Quarter to Date, Year to Date and since inception.
|
|
ii.
|
Calculate performance data of the Funds for dissemination to (i) the Client, including the Board, (ii) up to fifteen (15) information services covering the investment company industry and (iii) other parties,
as requested by the Client and agreed to by Service Provider.
|
|
iii.
|
Ensure consistency of performance information with reporting agencies such as Lipper, Morningstar and S&P.
|
|
iv.
|
Compile/report statistical information to ICI on a monthly/quarterly/annual basis as appropriate.
|
|
f
|
38a-1 Compliance Support Services:
|
|
i.
|
Assist the CCO in preparing or providing documentation for the Board to make findings and conduct reviews pertaining to the policies and procedures of the Service Provider to the 38a-1 compliance procedures of
the Client's Transfer Agent1.
|
|
ii.
|
Perform risk-based testing and reporting of the compliance policies and procedures of each service (other than the Compliance Services) provided to the Client by the Service Provider pursuant to this
Agreement and those of the Client's Transfer Agent", taking into account reasonable requests from the CCO to the extent practicable
|
1 Transfer Agent is defined to be specific to transfer agent services provided to the Client by FIS Fund Services
Schedule 2 to Service Agreement
Page 3
|
iii.
|
Provide copies of any compliance policies and procedures and any amendments thereto relating to the Service Provider as the Client or the CCO may reasonably request in connection with the Fund Compliance
Program
|
|
1
|
Provide quarterly report outlining material changes to compliance procedures
|
|
iv.
|
Provide information reasonably requested by the CCO or the Board in connection with the Board's determination regarding the adequacy and effectiveness of the compliance policies and procedures of Service
Provider
|
|
v.
|
Provide reports to the Client's CCO regarding the risk-based testing and monthly assessment performed by CFSO of its services under this Agreement.
|
|
vi.
|
Update Service Provider compliance procedures to correct material control weaknesses and to implement regulatory changes or best practices.
|
|
vii.
|
Maintain procedure change controls for Service Provider compliance procedures to ensure appropriate level of internal review.
|
|
viii.
|
Provide periodic certification that the Service Provider compliance procedures are reasonably designed to prevent, detect and correct violations of Federal securities laws.
|
|
g
|
Regulatory Administration
|
|
i.
|
Assist the Client and Fund Counsel in responding to routine regulatory examinations or investigations
|
|
ii.
|
Provide assistance and guidance to the Client with respect to matters governed by or related to regulatory requirements and developments including: monitoring regulatory and legislative developments which may
affect the Funds and assisting in strategic planning in response thereto
|
|
iii.
|
Provide assistance and guidance to the Client with respect to best practices for Policies and Procedures
|
|
iv.
|
Maintain corporate records on behalf of the Funds and provide access to fund governance information as it relates to Regulatory Administration's Services, including, but not limited to, board books, minute
books, Declaration of Trust and by-laws, and prepare, at the direction of Client, amendments to the Client's Declaration of Trust and by-laws and file as necessary
|
|
v.
|
Assist the Funds in obtaining and maintaining fidelity bonds and directors and officers/errors and omissions insurance policies for the Funds at the expense of the Funds in accordance with the requirements of
Rules 17g-1 and 17d-1(d)(7) under the 1940 Act, and file such fidelity bonds and any applicable, related notices with the SEC, to the extent such bonds and policies are approved by the Board
|
|
vi.
|
Assist the Client in preparing for and conducting Board meetings by (a) coordinating Board book production (b) subject to review and approval by the Client and its counsel, preparing Board agendas and
minutes, (c) preparing the relevant sections of the Board materials pertaining to the responsibilities of Citi, (d) assisting and coordinating special materials related to annual contract approvals and approval of rule 12b-1 plans and
related matters, (e) attending Board meetings
|
Schedule 2 to Service Agreement
Page 4
|
|
and recording the minutes, and (f) performing such other Board meeting functions as agreed by the parties
|
|
vii.
|
Coordinate the printing, distribution and solicitation of proxy materials for meetings of shareholders, if held; subject to review and approval by the Client and Fund Counsel, file proxy statements and related
solicitation materials with the SEC; prepare draft scripts for and attend the Shareholder meetings and record the minutes of the meetings;
|
|
viii.
|
Coordinate gathering of proxy voting information pertaining to proxy votes on Fund holdings and coordinate the drafting and filing of the Funds' proxy voting records (as approved by the Investment Adviser) on
Form N-PX
|
|
ix.
|
At the request of, and subject to the review and approval by the Client and Fund Counsel, prepare drafts of fund-related plans, policies and procedures or amendment thereto for existing Funds
|
|
x.
|
Assist in the preparation and distribution of Trustee/Officer Questionnaires; assist in the review of completed Questionnaires.
|
|
xi.
|
Prepare for review and approval by the Client and counsel to the Funds ("Fund Counsel") drafts of: (a) the annual update to each Funds' registration statement on Form N-1A and all 497 filings, (b) as requested
by the Client or Fund Counsel, other amendments to each Funds' registration statement and supplements to its prospectus and statements of additional information reflecting developments from time to time with respect to existing Funds and (c)
notices of annual or special meetings of shareholders of the Client and proxy materials relating thereto, and file any of the foregoing with the Commission upon the request of the Client or counsel to the Client; subject to approval by the
Client and Fund Counsel, file any of the foregoing with the SEC
|
|
xii.
|
Provide assistance in preparing, filing, amending and terminating state organizational documents; subject to review by counsel and Fund management
|
|
xiii.
|
Provide input on regulatory matters for shareholder reports
|
|
h
|
Provision of Certain Officers:
|
|
i.
|
Subject to the other terms and conditions of this Services Schedule and the Agreement, Service Provider shall make individuals available to serve as Secretary and/or Assistant Secretary of the Client (to serve
only in ministerial or administrative capacities relevant to the Services). The Board shall have discretion to appoint, or to determine not to appoint or to terminate the services of, such individuals, in its sole and absolute discretion.
|
|
i
|
Management and Board Reporting:
|
|
i.
|
Provide additional reporting as reasonably requested by Advisor or Fund Board
|
Schedule 2 to Service Agreement
Page 5
Schedule 2 to Services Agreement -- Services
Appendix B -- Fund Accounting Services provided by CFSO
|
1.
|
Services
|
|
a
|
Record Maintenance:
|
Maintain the following books and records of each Fund pursuant to Rule 31a-1 (the "Rule") under the
Investment Company Act of 1940, as amended (the "1940 Ace'):
|
i.
|
Journals containing an itemized daily record in detail of all purchases and sales of securities, all receipts and disbursements of cash and all other debits and credits, as required by subsection (b)(1) of the
Rule.
|
|
ii.
|
General and auxiliary ledgers reflecting all asset, liability, reserve, capital, income and expense accounts, including interest accrued and interest received, as required by subsection (b)(2)(i) of the Rule.
|
|
iii.
|
Separate ledger accounts required by subsection (b)(2)(ii) and (iii) of the Rule.
|
|
iv.
|
A monthly trial balance of all ledger accounts (except shareholder accounts) as required by subsection (b)(8) of the Rule.
|
|
b
|
Accounting Services:
|
Perform the following accounting services for each Fund:
|
i.
|
Allocate income and expense and calculate the net asset value per share ("NAV") of each class of shares offered by each Fund in accordance with the relevant provisions of the applicable Prospectus of each Fund
and applicable regulations under the 1940 Act.
|
|
ii.
|
Apply securities pricing information as required or authorized under the terms of the valuation policies and procedures of the Client ("Valuation Procedures"), including (A) pricing information from independent
pricing services, with respect to securities for which market quotations are readily available, (B) if applicable to a particular Fund or Funds, fair value pricing information or adjustment factors from independent fair value pricing services
or other vendors approved by the Client (collectively, "Fair Value Information Vendors") with respect to securities for which market quotations are not readily available, for which a significant event has occurred following the close of the
relevant market but prior to the Fund's pricing time, or which are otherwise required to be made subject to a fair value determination under the Valuation Procedures, and (C) prices obtained from each Fund's investment adviser or other
designee, as approved by the Board. The Client instructs and authorizes Service Provider to provide information pertaining to the Funds' investments to Fair Value Information Vendors in connection with the fair value determinations made under
the Valuation Procedures and other legitimate purposes related to the services to be provided hereunder.
|
|
iii.
|
Note: The Client acknowledges that while Service Provider's services related to fair value pricing are intended to assist the Client and the Board in its obligations to price and monitor pricing of Fund
investments, Service Provider does not
|
Schedule 2 to Service Agreement
Page 6
|
assume responsibility for the accuracy or appropriateness of pricing information or methodologies, including any fair value pricing information or factors.
|
|
iv.
|
Coordinate the preparation of reports that are prepared or provided by Fair Value Information Vendors which help the Client to monitor and evaluate its use of fair value pricing information under its Valuation
Procedures.
|
|
v.
|
Verify and reconcile with the Funds' custodian all daily trade activity.
|
|
vi.
|
Compute, as appropriate, each Fund's net income and capital gains, dividend payables, dividend factors, 7-day yields, 7-day effective yields, 30-day yields, and weighted average portfolio maturity; (and other
yields or standard or non-standard performance information as mutually agreed).
|
|
vii.
|
Assist the Client's Transfer Agent with respect to the payment of dividends and other distributions to Shareholders that have been approved by the Client.
|
|
viii.
|
Review daily the net asset value calculation and dividend factor (if any) for each Fund prior to release, check and confirm the net asset values and dividend factors for reasonableness and deviations, and
distribute net asset values to National Securities Clearing Corporation via the portfolio composition file.
|
|
ix.
|
Determine and report unrealized appreciation and depreciation on securities held by the Funds.
|
|
x.
|
Amortize premiums and accrete discounts on fixed income securities purchased at a price other than face value, in accordance with the Generally Accepted Accounting Principles of the United States or any
successor principles.
|
|
xi.
|
If applicable, report to the Client in the periodic market pricing of securities in any money market funds, with the comparison to the amortized cost basis.
|
|
xii.
|
Update fund accounting system to reflect rate changes, as received from a Fund's investment adviser or a third party vendor, on variable interest rate instruments.
|
|
xiii.
|
Post Fund transactions to appropriate categories.
|
|
xiv.
|
Accrue expenses of each Fund according to instructions received from the Client's Administrator, and submit changes to accruals and expense items to authorized officers of the Client (who are not Service
Provider employees) for review and approval.
|
|
xv.
|
Determine the outstanding receivables and payables for all (1) security trades, (2) Fund share transactions and (3) income and expense accounts.
|
|
xvi.
|
Provide accounting reports in connection with the Client's regular annual audit, and other audits and examinations by regulatory agencies.
|
|
xvii.
|
Provide such periodic reports as the parties shall agree upon, as set forth in a separate schedule.
|
|
xviii.
|
Assist the Client in identifying instances where market prices are not readily available, or are unreliable, each as set forth within parameters included in the Client's Valuation Procedures.
|
Schedule 2 to Service Agreement
Page 7
|
xix.
|
If applicable, report to the Board, or otherwise at the Funds' request, the daily market pricing of securities in any money market Funds, with the comparison to the amortized cost basis
|
|
xx.
|
Monitor timely settlement of income payments and security trades
|
|
xxi.
|
Identify, research and post all corporate actions due to the fund
|
|
xxii.
|
Post shareholder activity from Client's Transfer Agent and reconcile share balances with Client's Transfer Agent
|
|
xxiii.
|
Post portfolio trade activity from investment advisor
|
|
xxiv.
|
Respond to surveys from industry publications (i.e. Lipper, Morningstar, ICI, S&P)
|
|
c
|
Financial Statements and Regulatory Filings:
|
Perform the following services related to the financial statements and related regulatory filing obligations for each Fund:
|
i.
|
Provide monthly a hard copy of the unaudited financial statements described below, upon request of the Client. The unaudited financial statements will include the following items:
|
|
1
|
Unaudited Statement of Assets and Liabilities,
|
|
2
|
Unaudited Statement of Operations,
|
|
3
|
Unaudited Statement of Changes in Net Assets, and
|
|
4
|
Unaudited Condensed Financial Information
|
|
ii.
|
Provide accounting information for the following: (in compliance with Reg. S-X, as applicable):
|
|
1
|
Federal and state income tax returns and federal excise tax returns
|
|
2
|
The Client's annual reports with the SEC on Forms N-CEN and the N-CSR,
|
|
3
|
The Client's monthly schedules of investment for filing with the SEC on Form N-PORT;
|
|
4
|
The Client's annual and semi-annual shareholder reports and quarterly Board meetings;
|
|
5
|
Registration statements on Form N-1A and other filings relating to the registration of shares;
|
|
6
|
Reports related to Service Provider's monitoring of each Fund's status as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended;
|
|
7
|
Annual audit by the Client's auditors; and
|
Schedule 2 to Service Agreement
Page 8
|
8
|
Examinations performed by the SEC.
|
|
iii.
|
Calculate turnover and expense ratio.
|
|
iv.
|
Calculate daily spread between NAV and market price of Shares.
|
|
v.
|
Prepare schedule of Capital Gains and Losses.
|
|
vi.
|
Provide daily cash report.
|
|
vii.
|
Maintain and report security positions and transactions in accounting system.
|
|
viii.
|
Prepare Broker Commission Report.
|
|
ix.
|
Monitor expense limitations.
|
|
x.
|
Maintain list of failed trades.
|
|
xi.
|
Provide unrealized gain/loss report.
|
|
d
|
Other Operating Activities
|
|
i.
|
Provide the sub-certification pertaining to Service Provider's Administration services consistent with the requirements of the Xxxxxxxx-Xxxxx Act of 2002
|
Schedule 2 to Service Agreement
Page 9
Schedule 3 to Services Agreement
Dependencies
The Service Provider's delivery of the Services and its other obligations in connection with the Agreement are dependent upon:
|
1.
|
The Client and its employees, agents, subcontractors, predecessor service providers and other Persons that are not employees or Agents of the Service Provider whose cooperation is reasonably required for the
Service Provider to provide the Services and meet its obligations under any implementation plan agreed by the Parties (including, without limitation, investment advisors, custodians, and intermediaries) providing cooperation, information and,
as applicable, Instructions to the Service Provider promptly, in agreed formats, by agreed media and within agreed timeframes as required to allow the Service Provider to (i) provide the Services, (ii) meet its obligations under any
implementation plan agreed by the Parties, (iii) meet its other obligations under the Agreement, and (iv) resolve or reconcile discrepancies between or among data sources.
|
|
2.
|
The communications systems operated by the Client and third parties (other than Agents) in respect of activities that interface with the Services remaining fully operational.
|
|
3.
|
The authority, accuracy, truth and completeness of any information or data provided by the Client and its employees, current and predecessor Agents and other Persons (including, without limitation, investment
advisors, custodians, and intermediaries) that is reasonably requested by the Service Provider or is otherwise provided to the Service Provider.
|
|
4.
|
The Client informing the Service Provider on a timely basis of any modification to, or replacement of, any agreement to which it is a party that is relevant to the provision of the Services.
|
|
5.
|
Any warranty, representation, covenant or undertaking expressly made by the Client under the Agreement being and remaining true and correct at all times.
|
|
6.
|
Any of the items listed in documents agreed between the Parties from time to time as being the responsibility of the Client.
|
|
7.
|
Without limitation to the foregoing, in connection with any implementation plan or Service Change plan agreed by the Parties, Dependencies shall include:
|
|
7.1.
|
The Client agreeing to Service Change plan or, if applicable, implementation plan proposed by the Service Provider in a timely manner or negotiating changes in good faith and with reasonable promptness and
diligence.
|
|
7.2.
|
The Client satisfactorily completing in a timely fashion (including any deadlines imposed under the such Service Change plan or implementation plan) any software development, connectivity, or other obligations
required to be completed by the Client or its Agents in order for the Service Provider to satisfy its obligations under such Service Change plan or implementation plan or perform the Services (unless such delay is caused by a failure of the
Service Provider or an employee or Agent of the Service Provider, to complete in a timely manner any obligation of the Service Provider thereunder or otherwise, the completion of which by the Service Provider is not dependent upon another
Dependency).
|
|
7.3.
|
Timely delivery of technical data details and internal information of the Client, as reasonably requested by the Service Provider.
|
Schedule 3 to Service Agreement
Page 1
|
7.4.
|
The Client meeting any obligations mutually agreed in writing in connection with such testing plans.
|
|
7.5.
|
With respect to any functions or activities that are subject to acceptance testing by the Client in connection with any such Service Change plan or implementation plan, the timely delivery to the Service
Provider of acceptance feedback and final acceptance, provided that with respect to any final acceptance the work and output meets any mutually agreed business, functional and technical requirements specifications in all material
respects.
|
Schedule 3 to Service Agreement
Page 2
Schedule 4 to Services Agreement
Confidentiality and Data Privacy Conditions
|
1.
|
Introduction. These conditions ("Conditions") form part of the Services
Agreement (the "Agreement") that applies between the Client and the Service Provider in relation to the provision of Services to the Client pursuant to the Agreement. The purpose
of these Conditions is to set out each Party's obligations in relation to Confidential Information and Personal Data received from the other Party in connection with the provision of Services under the Agreement. Some provisions of these
Conditions are region-specific and will only apply in respect of the regions or countries specified. In some countries, further country-specific terms are required, and these will be included in the local conditions for that country
provided in writing to the Client.
|
|
2.
|
Protection of Confidential Information. The Receiving Party will treat the Disclosing Party's Confidential
Information as confidential in accordance with the terms hereof and exercise at least the same degree of care with respect to the Disclosing Party's Confidential Information that the Receiving Party exercises to protect its own Confidential
Information of a similar nature, and in any event, no less than reasonable care.
|
|
3.
|
Use and disclosure of Confidential Information. The Disclosing Party hereby grants the Receiving Party the right to
use and disclose the Disclosing Party's Confidential Information to the extent necessary to accomplish the relevant Permitted Purposes and as otherwise expressly set forth in these Conditions. The Receiving Party will only use and disclose
the Disclosing Party's Confidential Information to the extent permitted in these Conditions.
|
|
4.
|
Exceptions to confidentiality. Notwithstanding anything in these Conditions to the contrary, the restrictions on the
use and disclosure of Confidential Information in these Conditions do not apply to information that: (i) is in or enters the public domain other than as a result of the act or omission of the Receiving Party or its Affiliates, or their
respective Representatives, in breach of these Conditions; (ii) is obtained by the Receiving Party from a third party believed by the Receiving Party to have authority to provide it or already known by the Receiving Party, in each case
without notice of any obligation to maintain it as confidential; (iii) was independently developed by the Receiving Party without reference to the Disclosing Party's Confidential Information; (iv) an Authorized Persons has agreed that the
Receiving Party may disclose it; or (v) constitutes Anonymized and/or Aggregated Data.
|
|
5.
|
Authorized disclosures.
|
|
5.1.
|
Affiliates and Representatives. The Receiving Party may disclose the Disclosing Party's Confidential Information to
Receiving Party's Affiliates and to those of the Receiving Party's and its Affiliates' respective Representatives who have a "need to know" such Confidential Information, although only to the extent necessary to fulfil the relevant
Permitted Purposes. The Receiving Party shall ensure that any of its Affiliates and such Representatives to whom the Disclosing Party's Confidential Information is disclosed pursuant to this Condition shall be bound to treat such
Confidential Information as confidential and to use it for only the relevant Permitted Purposes.
|
|
5.2.
|
Other disclosures. Service Provider Recipients may: (i) disclose the Client's Confidential Information to such
parties as may be designated by the Client (for example, the Client's shared service centre) and to Client Affiliates; and (ii) disclose the Client's Confidential Information to Payment Infrastructure Providers and Securities Infrastructure
Providers on a confidential basis to the extent necessary for the provision of the Services under the Agreement.
|
|
5.3.
|
Payment reconciliation. When the Client instructs the Service Provider to process, investigate or reconcile a
payment or transaction between an account of the Client or one of its customers and a third party's account, the Service Provider may disclose to the third party the Client's name, address
|
Schedule 4 to Service Agreement
Page 1
|
and account number (and such other Client Confidential Information as may be reasonably required by the third party to effect such payments or transaction, respond to
requests from information about such payments or transactions, or perform payment or transaction reconciliations).
|
|
5.4.
|
Legal and regulatory disclosure. The Receiving Party (and, where the Service Provider is the Receiving Party,
Service Provider Recipients, Payment Infrastructure Providers and Securities Infrastructure Providers) may disclose the Disclosing Party's Confidential Information pursuant to legal process, or pursuant to any other foreign or domestic
legal and/or regulatory obligation or request, or agreement entered into by any of them and any governmental authority, domestic or foreign, or between or among any two or more domestic or foreign governmental authorities, including
disclosure to courts, tribunals, and/or legal, regulatory, tax and government authorities, and persons from whom they receive or to whom they make, process, administer or reconcile payments or other financial transactions on behalf of the
Disclosing Party.
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6.
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Retention and deletion. On termination of the Agreement, each of the Client and Service Provider Recipients shall be
entitled to retain and use the other party's Confidential Information, subject to the confidentiality and security obligations herein, for legal, regulatory, audit and internal compliance purposes and in accordance with their internal
records management policies to the extent that this is permissible under laws and regulations applicable to the Receiving Party, but shall otherwise securely destroy or delete such Confidential Information. Notwithstanding the foregoing,
the Receiving Party shall not be obliged to destroy electronic records.
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7.
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Data privacy.
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7.1.
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Compliance with law. The Receiving Party will comply with local data protection laws applicable to the Receiving
Party in Processing Disclosing Party Personal Data in connection with the provision or receipt of Services under the Agreement.
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7.2.
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Confidentiality and security. The Service Provider will, and will use reasonable endeavours to ensure that Service
Provider Affiliates and Third Party Service Providers will, implement reasonable and appropriate technical and organizational security measures to protect Client Personal Data that is within its or their custody or control against
unauthorized or unlawful Processing and accidental destruction or loss.
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7.3.
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Purpose limitation. The Client hereby authorizes and instructs the Service Provider to Process Client Personal Data
in accordance with and as permitted by these Conditions and to the extent reasonably required for the relevant Permitted Purposes for the period of time reasonably necessary for the relevant Permitted Purposes. The Service Provider shall
not Process Client Personal Data for any other purpose unless expressly authorized or instructed by the Client.
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7.4.
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International transfer. The Client acknowledges that in the course of the disclosures described in Condition 5
{Authorized disclosures) above, Disclosing Party Personal Data may be disclosed to recipients located in countries that do not offer a level of protection for those data as high as the level of protection in the country in which the Service
Provider is established or the Client is located.
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7.5.
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Consent and warranty. To the extent that the Client is the Data Subject of Client Personal Data Processed by the
Service Provider, then the Client consents to the Service Provider's Processing of all of such Client Personal Data as described in Conditions 3 to 7. To the extent that the Service Provider Processes Client Personal Data about other Data
Subjects (for example, the Client's personnel or Related Parties or the Client's customers), the Client warrants that to the extent required by applicable law or regulation it has provided notice to and obtained consent from such Data Subjects in relation to the Service Provider's (and its Affliates' and Third Party Service Providers') Processing of their Personal Data as described in those Conditions (and will provide such
notice or obtain such consent in advance of providing similar information for such Processing
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Schedule 4 to Service Agreement
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to the Service Provider of such Affiliates or Third Party Service Providers in future). The Client further warrants that any such consent has been granted by these Data
Subjects for the period reasonably required for the realisation of the relevant Permitted Purposes. The parties acknowledge and agree that the above consent may not be required if the Processing is necessary for the performance of
obligations resulting from a contract with the Data Subject or imposed by law, or for the purposes of legitimate interests pursued by the Service Provider or a person to whom the Client Personal Data are disclosed which are not
outweighed by prejudice to the rights, freedoms or legitimate interests of the Data Subjects or (other than where the Service Provider is established in Austria and/or the Czech Republic) for the Processing of information relating to
persons other than living individuals. Service Provider's Affiliates and Third Party Service Providers shall be third party beneficiaries of the Client's warranties in this Condition 7.5.
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7.6.
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Employee reliability and training. The Service Provider will take reasonable steps to ensure the reliability of its
employees who will have access to Client Personal Data and will ensure that those of its employees who are involved in the Processing of Client Personal Data have undergone appropriate training in the care, protection and handling of
Personal Data.
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7.7.
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Audit. The Service Provider shall provide the Client with such information as is reasonably requested by the Client
to enable the Client to satisfy itself of the Service Provider's compliance with its obligations under Condition 7.2 (Confidentiality and security). Nothing in this Condition 7.7 shall have the effect of requiring the Service Provider, its
Affiliates or any Third Party Service Provider to provide information that may cause it to breach its respective confidentiality obligations to third parties or its respective internal data security and confidentiality policies and
procedures.
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8.
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Security Incidents. If the Service Provider becomes aware of a Security Incident, the Service Provider will
investigate and remediate the effects of the Security Incident in accordance with its internal policies and procedures and the requirements of law and regulation applicable to Service Provider. The Service Provider will notify the Client of
any Security Incident as soon as reasonably practicable after the Service Provider becomes aware of a Security Incident, unless the Service Provider is subject to a legal or regulatory constraint, or if it would compromise the Service
Provider's investigation. The parties agree that where the Service Provider has no direct contractual relationship with Data Subjects whose data have been compromised in a Security Incident, the Client will be responsible for making any
notifications to regulators and individuals that are required under applicable data protection law or regulation. The Service Provider will provide reasonable information and assistance to the Client to help the Client to meet its
obligations to Data Subjects and regulators. Neither the Service Provider nor the Client will issue press or media statements or comments in connection with the Security Incident that name the other party unless it has obtained the other
party's prior written consent.
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9.
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Data protection: EEA and Jersey - specific provisions. The following provisions of this Condition 9 apply only where
the Service Provider is established in the European Economic Area or Jersey:
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9.1.
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Withdrawal of consent. Consent to the Processing of Personal Data is voluntary and Data Subjects may withdraw their
consent to this Processing. However, if consent is withdrawn and unless the Service Provider is entitled to continue the relevant processing without consent, this may prevent the Service Provider from providing Services under the Agreement.
Data Subjects may have recourse to the courts in the event that their rights have been infringed.
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9.2.
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Data subject rights. Data Subjects may object, by request and free of charge, to the Processing or Disclosing Party
Personal Data relating to them for certain purposes, including direct marketing, and may access and rectify, or request deletion in compliance with local law and the terms herein, of Disclosing Party
Personal Data relating to them, and may request not to be subject to an automated decision. More information about the Service Provider's Processing of Client Personal Data, the relevant data protection authority and data processing
registrar, if applicable, may be obtained by contacting the Client's account manager.
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Schedule 4 to Service Agreement
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9.3.
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Data processor. If and to the extent that the Service Provider's Processing activities in relation to Client
Personal Data cause it to be regarded as a data processor for the Client, the Service Provider will act only on the Client's instructions in relation to such data. Client's instructions are as specified in Condition 7.3.
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9.4.
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Information and assistance. The Service Provider shall provide such information and assistance to the Client as the
Client may reasonably request in order to enable the Client to comply with the rights of Data Subjects or with information notices served by any data protection authority.
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9.5.
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Recipients. Clients of Service Provider establishments in Bulgaria, the Czech Republic, Hungary, Italy and Spain may
obtain further information about Service Provider Affiliates, the Service Provider's Third Party Service Providers and Payment Infrastructure Providers and Securities Infrastructure Providers to whom their Personal Data has been disclosed
on request from the Client's account manager.
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10.
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Definitions. Capitalised terms used in these Conditions shall have the meanings given to them in
the Services Agreement or as set out below:
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"Affiliate" means either a Service Provider Affiliate or a Client Affiliate, as the context may require;
"Anonymized and/or Aggregated Data" means information relating to the Disclosing Party or its Related
Parties (or, in the case of Client, its customers) received or generated by the Receiving Party in connection with the provision or receipt of the Services under the Agreement and in respect of which all personal identifiers have been removed, and/or
which has been aggregated with other data, in both cases such that the data cannot identify the Disclosing Party, its Affiliates or Related Parties or their respective customers or Representatives, or a natural person;
"Conditions" means these Confidentiality and Data Privacy Conditions;
"Confidential Information" means:
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(A)
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where the Disclosing Party is the Client or a Client Affiliate, or any of their respective Representatives: information relating to the Client or Client Affiliates or their respective Representatives or Related
Parties received by Service Provider Recipients in the course of providing Services under the Agreement to the Client, including all Client Personal Data, Client's transactional information, and any other information that is either designated
by the Client as confidential at the time of disclosure or that a reasonable person would consider to be of a confidential or proprietary nature; or
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(B)
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where the Disclosing Party is the Service Provider or a Service Provider Affiliate, or any of their respective Representatives or Third Party Service Providers or technology or data licensors: information
relating to the Service Provider or Service Provider Affiliates or their respective Representatives, Third Party Service Providers or technology or data licensors, received or accessed by the Client, Client Affiliates and their respective
Representatives in connection with the receipt of Services under the Agreement, including Service Provider Personal Data, information relating to the Service Provider's products and services and the terms and conditions on which they are
provided, technology (including software, the form and format of reports and on-line computer screens), pricing information, internal policies, operational procedures and any other information that is either designated by the Service Provider
as confidential at the time of disclosure or that a reasonable person would consider to be of a confidential or proprietary nature;
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"Control" means that an entity possesses directly or indirectly the power to direct or cause the
direction of the management and policies of the other entity, whether through the ownership of voting shares, by contract or otherwise;
Schedule 4 to Service Agreement
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"Client Affiliate" means any entity, present or future, that directly or indirectly Controls, is
Controlled by, or is under common Control with Client, and any branch thereof, including, without limitation, if the Client is an investment adviser or other financial institution, pooled investment vehicles managed or sponsored by the Client with
respect to which Service Provider provides Services under the Agreement;
"Client Personal Data" means Personal Data relating to a Data Subject received by or on behalf of the
Service Provider from the Client, Client Affiliates and their respective Representatives and Related Parties in the course of providing Services under the Agreement to the Client. Client Personal Data may include names, contact details,
identification and verification information, nationality and residency information, taxpayer identification numbers, voiceprints, Service Provider account and transactional information (where legally permissible), to the extent that these amount to
Personal Data under applicable local data protection or data privacy law;
"Data Subject" means a natural person who is identified, or who can be identified directly or indirectly,
in particular by reference to an identification number or to one or more factors specific to his or her physical, physiological, mental, economic, cultural or social identity, or, if different, the meaning given to this term or nearest equivalent
term under applicable local data protection or data privacy law with respect to such natural person. For the purpose of these Conditions, Data Subjects may be the Client, Client Affiliates, the Service Provider, their personnel, Related Parties,
customers of the Client, suppliers, payment remitters, payment beneficiaries or other persons;
"Disclosing Party" means a party to the Agreement that discloses Confidential Information to the other
party;
"Disclosing Party Personal Data" means Personal Data provided by or on behalf of the Disclosing Party to
the Receiving Party in the course of the provision or receipt of the Services under the Agreement;
"Payment Infrastructure Provider" means a payments clearance system or other third party which forms part
of a payment system infrastructure, including without limitation communications, clearing or payment systems and intermediary banks or correspondent banks who are not agents of the Service Provider;
"Permitted Purposes" in relation to the Service Provider's use of Client's Confidential Information means
the following purposes: (i) to provide Services under the Agreement to the Client and, where contemplated by the Agreement, the Client's Affiliates and Related Parties, in accordance with the Agreement; (ii) to undertake activities related to the
provision of Services under the Agreement, such as, by way of non-exhaustive example: (a) to fulfil foreign and domestic legal, regulatory and compliance requirements (including US anti-money laundering obligations applicable to the Service Providers
and its Affiliates) and comply with any law applicable to any of the Service Provider, Service Provider Affiliates and their respective Third Party Service Providers; (b) to verify the identity of Client representatives who contact the Service
Provider or may be contacted by the Service Provider; (c) for risk assessment, statistical, trend analysis and planning purposes; (d) to monitor and record calls and electronic communications with the Client and its Affiliates and Related Parties and
their respective Representatives for quality, training, investigation and fraud prevention purposes; (e) for crime detection, prevention, investigation and prosecution; (f) to enforce or defend the Service Provider's, its Affiliates' and Third Party
Service Providers' rights; and (g) to manage the Service Provider's relationship with the Client and, where Services may be consumed by them as contemplated by the Agreement, the Client's Affiliates and Related Parties, which may include providing
information to Client and Client Affiliates and Client's Related Parties about the Service Provider's and Service Provider Affiliates' products and services; and (iii) the purposes set out in Condition 5 (Authorized disclosures);
"Permitted Purposes" in relation to the Client's use of the Service Provider's Confidential Information means the following purposes: to enjoy the benefit of,
enforce or defend its rights and perform its obligations in connection with the receipt of Services from the Service Provider in accordance with the Conditions, and to manage the Client's relationship with the Service Provider;
Schedule 4 to Service Agreement
Page 5
"Personal Data" means any information that can be used, directly or indirectly, alone or in combination
with other information, to identify an individual, or, if different, the meaning given to this term or nearest equivalent term under applicable local data protection or data privacy law;
"Processing" of Personal Data means any operation or set of operations that is performed upon Personal
Data, whether or not by automatic means, such as collection, recording, organization, storage, adaptation or alteration, retrieval, consultation, use, disclosure by transmission, dissemination or otherwise making available, alignment or combination,
blocking, erasure or destruction, or, if different, the meaning given to this term or nearest equivalent term under applicable local data protection or data privacy law with respect to such Personal Data;
"Receiving Party" means a party to the Agreement that receives Confidential Information from the other
party to the Agreement;
"Related Party" means any natural person or entity, or branch thereof, that: (i) owns, directly or
indirectly, stock of the Client, if the Client is a corporation, (ii) owns, directly or indirectly, profits, interests or capital interests in the Client, if the Client is a partnership, (iii) is treated as the owner of the Client, if the Client is a
"grantor trust" under sections 671 through 679 of the United States Internal Revenue Code or is of equivalent status under any similar law of any jurisdiction, domestic or foreign, (iv) holds, directly or indirectly, beneficial interests in the
Client, if the Client is a trust; or (v) exercises control over the Client directly or indirectly through ownership or any arrangement or other means, if the Client is an entity, including (a) a settlor, protector or beneficiary of a trust, (b) a
person who ultimately has a controlling interest in the Client, (c) a person who exercises control over the Client through other means, such as manager of a limited liability company or a general partner of a partnership, or (d) the senior managing
official of the Client; or (vi) an investment adviser that provides services to or for the benefit of Client or a Client Affiliate;
"Representatives" means a party's officers, directors, employees, agents, representatives, professional
advisers and Third Party Service Providers;
"Securities Infrastructure Provider" means a securities exchange or settlement system or other third
party which forms part of a securities settlement infrastructure, including without limitation communications, clearing or payment systems and brokers, dealers and banks;
"Security Incident" means an incident whereby the confidentiality of Disclosing Party Personal Data
within Receiving Party's custody or control has been materially compromised so as to pose a reasonable likelihood of harm to the Data Subjects involved;
"Service Provider Affiliate" means any entity, present or future, that directly or indirectly Controls,
is Controlled by or is under common Control with the Service Provider, and any branch or representative offices thereof, including Citibank, N.A. and Citigroup Technologies, Inc.;
"Service Provider Personal Data" means Personal Data relating to a Data Subject received by the Client
from the Service Provider, Service Provider Affiliates and/or their respective Representatives or Third Party Service Providers in the course of receiving Services under the Agreement from the Service Provider
or such Service Provider Affiliates and/or Representatives or Third Party Service Providers. Service Provider Personal Data may include names and contact details, to the extent that these amount to Personal Data under applicable local data protection
or data privacy law;
"Service Provider Recipients" means the Service Provider, Service Provider Affiliates and their respective Representatives
and Third Party Service Providers; and
"Third Party Service Provider" means a third party reasonably selected by the Receiving Party or its Affiliate to provide
services to it and who is not a Payment Infrastructure Provider or Securities Infrastructure
Schedule 4 to Service Agreement
Page 6
Provider. Examples of Third Party Service Providers include technology service providers, business process outsourcing service providers and call centre service
providers.
Schedule 4 to Service Agreement
Page 7
Schedule 5 to Services Agreement
Fee Schedule
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1.
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FEES
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The Client shall pay the following fees to Service Provider as compensation for the Services rendered hereunder. All Fees shall be aggregated and paid monthly.
00000000.0.XXXXXXXX
Schedule 5 to Service Agreement
Page 1
