TRANSFER AGENCY AND SERVICE AGREEMENT
AMONG
LAZARD WORLD DIVIDEND & INCOME FUND, INC.
AND
EQUISERVE TRUST COMPANY, N.A.
AND
EQUISERVE, INC.
Table of Contents
Section 1. Certain Definitions..........................................4
Section 2. Appointment of Agent.........................................5
Section 3. Standard Services............................................6
Section 4. Dividend Disbursing Services.................................8
Section 5. Shareholder Internet Account Access Services.................9
Section 6. Optional Services............................................9
Section 7. Fees and Expenses...........................................10
Section 8. Representations and Warranties of Transfer Agent............11
Section 9. Representations and Warranties of Customer..................12
Section 10. Indemnification/Limitation of Liability.....................12
Section 11. Damages.....................................................14
Section 12. Responsibilities of the Transfer Agent......................15
Section 13. Covenants of the Customer and Transfer Agent................15
Section 14. Data Access Service and Proprietary Information.............16
Section 15. Confidentiality.............................................18
Section 16. Term and Termination........................................19
Section 17. Assignment..................................................20
Section 18. Unaffiliated Third Parties..................................20
Section 19. Miscellaneous...............................................20
Section 19.1. Notice......................................................20
Section 19.2 Successors..................................................21
Section 19.3 Amendments..................................................21
Section 19.4. Severability................................................21
Section 19.5 Governing Law...............................................21
Section 19.6 Force Majeure...............................................21
Section 19.7 Descriptive Headings........................................22
Section 19.8 Third Party Beneficiaries...................................22
Section 19.9 Survival....................................................22
Section 19.10 Priorities..................................................22
Section 19.11 Merger of Agreement.........................................22
Section 19.12 Counterparts................................................22
AGREEMENT made as of the 27th day of June, 2005, by and among each of
Lazard World Dividend & Income Fund, Inc., a corporation, having a principal
office and place of business at 00 Xxxxxxxxxxx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000
(each a "Customer" or the "Customer"), and EquiServe, Inc., a Delaware
corporation, and its fully owned subsidiary EquiServe Trust Company, N.A., a
federally charted trust company doing business at 000 Xxxxxx Xxxxxx, Xxxxxx,
Xxxxxxxxxxxxx 00000 (collectively, the "Transfer Agent" or individually "EQI"
and the "Trust Company", respectively).
WHEREAS, the Customer desires to appoint the Transfer Agent as sole
transfer agent, registrar, administrator of dividend reinvestment plans, option
plans, and direct stock purchase plans and EQI as dividend disbursing agent and
processor of all payments received or made by Customer under this Agreement.
WHEREAS, the Trust Company and EQI desire to accept such respective
appointments and perform the services related to such appointments;
WHEREAS, the Board of Directors of the Customer has approved appointment
of the Transfer Agent.
NOW THEREFORE, in consideration of the mutual covenants herein
contained, the parties hereto agree as follows:
1. CERTAIN DEFINITIONS.
(a) "ACCOUNT" or "ACCOUNTS" shall mean the account of each
Shareholder which account shall hold any full or fractional
Shares held by such Shareholder and/or outstanding funds or tax
reporting to be done.
(b) "ADDITIONAL SERVICES" shall mean any and all services which are
not Services as set forth in the Fee and Service Schedule, but
performed by Transfer Agent upon request of Customer.
(c) "AGREEMENT" shall mean this agreement and any and all exhibits
or schedules attached hereto and any and all amendments or
modifications, which may from time to time be executed.
(d) "ANNUAL PERIOD" shall mean each twelve (12) month period
commencing on the Effective Date and, thereafter, on each
anniversary of the Effective Date.
(e) "CLOSED ACCOUNT" shall mean an account with a zero share
balance, no outstanding funds or no reportable tax information.
(f) "CUSTOMER ID(S)" shall have the meaning set forth in SECTION
14.3.
(g) "DATA ACCESS SERVICE" shall have the meaning set forth in
SECTION 14.1.
4
(h) "DIVIDEND REINVESTMENT PLAN" and "DIRECT STOCK PURCHASE PLAN"
("PLANS"), shall mean the services as set forth in SECTION 4 and
in the Fee and Service Schedule.
(i) "EFFECTIVE DATE" shall mean the date first stated above.
(j) "FEE AND SERVICE SCHEDULE" shall mean the fees and services set
forth in the "Fee and Service Schedule" attached hereto.
(k) "PASSWORD(S)" shall have the meaning set forth in SECTION 14.3.
(l) "PROPRIETARY INFORMATION" shall have the meaning set forth in
SECTION 14.3.
(m) "SECURITY PROCEDURES" shall have the meaning set forth in
SECTION 5.1.
(n) "SERVICES" shall mean any and all services as further described
herein and in the "Fee and Service Schedule" or other schedules
attached hereto.
(o) "SHARE" shall mean Customer's common stock, par value $0.001 per
share authorized by the Customer's Articles of Incorporation,
and other classes of Customer's stock to be designated by the
Customer in writing and for which the Transfer Agent agrees to
service under this Agreement.
(p) "SHAREHOLDER" shall mean the holder of record of Shares.
(q) "SHAREHOLDER DATA" shall have the meaning set forth in SECTION
14.2.
(r) "SHAREHOLDER INTERNET SERVICES" shall have the meaning set forth
in SECTION 5.1.
2. APPOINTMENT OF AGENT.
2.1 APPOINTMENTS. The Customer hereby appoints the Transfer Agent to
act as sole transfer agent and registrar for all Shares in accordance
with the terms and conditions hereof and as administrator of Plans and
appoints EQI as dividend disbursing agent and processor of all payments
received or made by or on behalf of the Customer under this Agreement,
and the Transfer Agent and EQI accept the appointments. Customer shall
provide Transfer Agent with certified copies of resolutions appointing
the Trust Company as Transfer Agent.
2.2 DOCUMENTS. In connection with the appointing of Transfer Agent
as the transfer agent and registrar for each Customer, the Customer will
provide or has previously provided each of the following documents to
the Transfer Agent:
(a) Copies of Registration Statements and amendments thereto, filed
with the Securities and Exchange Commission for initial public
offerings;
(b) Specimens of all forms of outstanding stock certificates, in
forms approved by the Board of Directors of the Customer, with a
certificate of the Secretary of the Customer as to such
approval;
5
(c) Specimens of the Signatures of the officers of the Customer
authorized to sign stock certificates and individuals authorized
to sign written instructions and requests; and
(d) An opinion of counsel for the Customer addressed to both the
Trust Company and EQI with respect to:
(i) The Customer's organization and existence under the laws
of its state of organization;
(ii) The status of all Shares of the Customer covered by the
appointment under the Securities Act of 1933, as
amended, and any other applicable federal or state
statute; and
(iii) That all issued Shares are, and all unissued Shares will
be, when issued, validly issued, fully paid and
non-assessable.
2.3 RECORDS. Transfer Agent may adopt as part of its records all
lists of holders, records of Customer's stock, books, documents and records
which have been employed by any former agent of Customer for the maintenance of
the ledgers for the Customer's shares, provided such ledger is certified by an
officer of Customer or the prior transfer agent to be true, authentic and
complete.
2.4 SHARES. Customer shall, if applicable, inform Transfer Agent as
to (i) the existence or termination of any restrictions on the transfer of
Shares and in the application to or removal from any certificate of stock of any
legend restricting the transfer of such Shares or the substitution for such
certificate of a certificate without such legend, (ii) any authorized but
unissued Shares reserved for specific purposes, (iii) any outstanding Shares
which are exchangeable for Shares and the basis for exchange, (iv) reserved
Shares subject to option and the details of such reservation and (v) special
instructions regarding dividends and information of foreign holders.
2.5 CUSTOMER'S AGENT. Transfer Agent represents that it is engaged
in an independent business and will perform its obligations under this Agreement
as an agent of Customer.
2.6 CERTIFICATES. Customer shall deliver to Transfer Agent an
appropriate supply of stock certificates, which certificates shall provide a
signature panel for use by an officer of or authorized xxxxxx for Transfer Agent
to sign as transfer agent and registrar, and which shall state that such
certificates are only valid after being countersigned and registered.
3. STANDARD SERVICES.
3.1 TRANSFER AGENT SERVICES. The Transfer Agent will perform the
following services:
In accordance with the procedures established from time to time by
agreement between the Customer and the Transfer Agent, the Transfer Agent shall:
6
(a) issue and record the appropriate number of Shares as authorized
and hold such Shares in the appropriate Shareholder account;
(b) effect transfers of Shares by the registered owners thereof upon
receipt of appropriate documentation;
(c) act as agent for Shareholders pursuant to the Dividend
Reinvestment Plan, and other investment programs as amended from
time to time in accordance with the terms of the agreements
relating thereto to which the Transfer Agent is or will be a
party;
(d) issue replacement certificates for those certificates alleged to
have been lost, stolen or destroyed upon receipt by the Transfer
Agent of an open penalty surety bond satisfactory to it and
holding it and the Customer harmless, absent notice to the
Customer and the Transfer Agent that such certificates have been
acquired by a bona fide purchaser. The Transfer Agent, at its
option, may issue replacement certificates in place of mutilated
stock certificates upon presentation thereof without such
indemnity. Further, the Transfer Agent may at its sole option
accept indemnification from the Customer to issue replacement
certificates for those certificates alleged to have been lost,
stolen or destroyed in lieu of an open penalty bond and;
3.2 EQI SERVICES. In accordance with procedures established from
time to time by agreement between the Customer and EQI, EQI shall:
(a) prepare and transmit payments for dividends and distributions
declared by the Customer, provided good funds for said dividends
or distributions are received by EQI prior to the scheduled
payable date for said dividends or distributions;
(b) issue replacement checks and place stop orders on original
checks based on shareholder's representation that a check was
not received or was lost. Such stop orders and replacements will
be deemed to have been made at the request of Customer, and
Customer shall be responsible for all losses or claims resulting
from such replacement; and
(c) Receive all payments made to the Customer or the Transfer Agent
under the Plans and make all payments required to be made under
such plans, including all payments required to be made to the
Customer.
3.3 CUSTOMARY SERVICES. The Transfer Agent shall perform all the
customary services of a transfer agent, agent of dividend reinvestment plan,
cash purchase plan and other investment programs as described in SECTION 3.1
consistent with those requirements in effect as of the date of this Agreement.
EQI shall perform all the customary services of a dividend disbursing agent and
a processor of payments as described in SECTION 3.2 consistently with those
requirements in effect as of the date of this Agreement. The detailed services
and definition, frequency, limitations and associated costs (if any) of the
Services to be performed by the Transfer Agent are set out in the attached Fee
and Service Schedule.
7
3.4 COMPLIANCE WITH LAWS. The Customer agrees that each of the Trust
Company and EQI is obligated to and the Trust Company and EQI agree to comply
with all applicable federal, state and local laws and regulations, codes, order
and government rules in the performance of its duties under this Agreement.
3.5 UNCLAIMED PROPERTY AND LOST SHAREHOLDERS. The Transfer Agent
shall report unclaimed property to each state in compliance with state law and
shall comply with Section 17Ad-17 of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), for lost Shareholders. If the Customer is not in
compliance with applicable state laws, there will be no charge for the first two
years for this service for such Customer, other than a charge of $3.00 per due
diligence notice mailed; provided that after the first two years, the Transfer
Agent will charge such Customer its then standard fee plus any out-of-pocket
expenses.
3.6 COMPLIANCE WITH OFFICE OF FOREIGN ASSET CONTROL ("OFAC")
REGULATIONS. The Transfer Agent shall ensure compliance with OFAC laws and
regulations.
3.7 COMPLIANCE WITH RULE 38A-1 UNDER THE 1940 ACT. In order to
assist the Fund with its regulatory compliance obligations, Transfer Agent
hereby agrees that it will promptly notify the Fund in the event the Transfer
Agent becomes aware of any material inadequacy in its internal controls,
policies and procedures. Additionally, Transfer Agent agrees to provide the Fund
with quarterly certifications indicating that there are currently no material
inadequacies in its internal controls, policies and procedures. Transfer Agent
will furnish other such information as it may be required to provide under
applicable law.
4. DIVIDEND DISBURSING SERVICES.
4.1 DECLARATION OF DIVIDENDS. Upon receipt of a written notice from
the President, any Vice President, Secretary, Assistant Secretary, Treasurer or
Assistant Treasurer of Customer declaring the payment of a dividend, EQI shall
disburse such dividend payments provided that in advance of such payment,
Customer furnishes EQI with sufficient funds. The payment of such funds to EQI
for the purpose of being available for the payment of dividend checks from time
to time is not intended by Customer to confer any rights in such funds on
Customer's Shareholders whether in trust or in contract or otherwise.
4.2 STOP PAYMENTS. Customer hereby authorizes EQI to stop payment of
checks issued in payment of dividends, but not presented for payment, when the
payees thereof allege either that they have not received the checks or that such
checks have been mislaid, lost, stolen, destroyed or, through no fault of
theirs, are otherwise beyond their control and cannot be produced by them for
presentation and collection, and EQI shall issue and deliver duplicate checks in
replacement thereof, and Customer shall indemnify Transfer Agent against any
loss or damage resulting from reissuance of the checks.
4.3 TAX WITHHOLDING. EQI is hereby authorized to deduct from all
dividends declared by the Customer and disbursed by EQI, as dividend disbursing
agent, the tax required to be withheld pursuant to Sections 1441, 1442 and 3406
of the Internal Revenue Code of 1986, as amended, or by any Federal or State
statutes subsequently enacted, and to make the necessary return and payment of
such tax in connection therewith.
8
5. SHAREHOLDER INTERNET ACCOUNT ACCESS SERVICES.
5.1 SHAREHOLDER INTERNET SERVICES. The Transfer Agent shall provide
internet access to the Customer's shareholders through Transfer Agent's web
site, xxxxxxxxx.xxx ("Shareholder Internet Services"), pursuant to its
established procedures ("Security Procedures"), to allow shareholders to view
their account information and perform certain on-line transaction request
capabilities. The Shareholder Internet Services shall be provided at no
additional charge at this time, other than the transaction fees currently being
charged for the different transactions as described on the Fee and Service
Schedule. The Transfer Agent reserves the right to charge a fee for this service
at any time in the future.
5.2 SCOPE OF TRANSFER AGENT SHAREHOLDER INTERNET SERVICES
OBLIGATIONS. Transfer Agent shall at all times use reasonable care in performing
Shareholder Internet Services under this Agreement. With respect to any claims
for losses, damages, costs or expenses which may arise directly or indirectly
from Security Procedures which Transfer Agent has implemented or omitted,
Transfer Agent shall be presumed to have used reasonable care if it has
followed, in all material respects, its Security Procedures then in effect.
Transfer Agent may, but shall not be required to, modify such Security
Procedures from time to time to the extent it believes, in good faith, that such
modifications will enhance the security of Shareholder Internet Services. All
data and information transmissions accessed via Shareholder Internet Services
are for informational purposes only, and are not intended to satisfy regulatory
requirements or comply with any laws, rules, requirements or standards of any
federal, state or local governmental authority, agency or industry regulatory
body, including the securities industry, which compliance is the sole
responsibility of Customer.
5.3 NO OTHER WARRANTIES.
EXCEPT AS OTHERWISE EXPRESSLY STATED IN SECTION 5.2 OF THIS AGREEMENT, THE
SHAREHOLDER INTERNET SERVICES ARE PROVIDED "AS-IS," ON AN "AS AVAILABLE" BASIS,
AND TRANSFER AGENT HEREBY SPECIFICALLY DISCLAIMS ANY AND ALL REPRESENTATIONS OR
WARRANTIES, EXPRESS OR IMPLIED, REGARDING SUCH SERVICES PROVIDED BY TRANSFER
AGENT HEREUNDER, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE AND IMPLIED WARRANTIES ARISING FROM COURSE OF DEALING
OR COURSE OF PERFORMANCE.
6. OPTIONAL SERVICES.
To the extent that a Customer elects to engage the Transfer Agent to
provide the services listed below the Customer shall engage the Transfer Agent
to provide such services upon terms and fees to be agreed upon by the parties:
(a) Corporate actions (including inter alia, odd lot buy backs,
exchanges, mergers, redemptions, subscriptions, capital
reorganization, coordination of post-merger services and special
meetings).
9
7. FEES AND EXPENSES.
7.1 FEE AND SERVICE SCHEDULES. Each Customer agrees to pay Transfer
Agent the fees for Services performed pursuant to this Agreement as set forth in
the Fee and Service Schedule attached hereto, for the initial term of the
Agreement (the "Initial Term").
7.2 ADJUSTMENTS. Notwithstanding SECTION 7.1 above, fees, and the
out-of-pocket expenses and advances identified under SECTION 7.3 below, may be
changed from time to time as agreed upon in writing between the Transfer Agent
and the Customer.
7.3 OUT-OF-POCKET EXPENSES. In addition to the fees paid under
SECTION 7.1 above, the Customer agrees to reimburse the Transfer Agent for
out-of-pocket expenses, including but not limited to postage, forms, telephone,
microfilm, microfiche, taxes, records storage, exchange and broker fees, or
advances incurred by the Transfer Agent for the items set out in Exhibit A
attached hereto. Out-of-pocket expenses may include the costs to transfer agent
of administrative expenses. In addition, any other expenses incurred by the
Transfer Agent at the request or with the consent of the Customer, will be
reimbursed by the Customer.
7.4 CONVERSION FUNDS. Conversion funding required by any out of
proof condition caused by a prior agents' services shall be advanced to Transfer
Agent prior to the commencement of services.
7.5 POSTAGE. Postage for mailing of dividends, proxies, Customer
reports and other mailings to all Shareholder Accounts shall be advanced to the
Transfer Agent by the Customer prior to commencement of the mailing date of such
materials.
7.6 INVOICES. The Customer agrees to pay all fees and reimbursable
expenses within 30 days of the date of the respective billing notice, except for
any fees or expenses that are subject to good faith dispute. In the event of
such a dispute, the Customer may only withhold that portion of the fee or
expense subject to the good faith dispute. The Customer shall notify the
Transfer Agent in writing within twenty-one (21) calendar days following the
receipt of each billing notice if the Customer is disputing any amounts in good
faith. If the Customer does not provide such notice of dispute within the
required time, the billing notice will be deemed accepted by the Customer. The
Customer shall settle such disputed amounts within five (5) business days of the
day on which the parties agree on the amount to be paid by payment of the agreed
amount. If no agreement is reached, then such disputed amounts shall be settled
as may be required by law or legal process.
7.7 TAXES. Customer shall pay all sales or use taxes in lieu thereof
with respect to the Services (if applicable) provided by Transfer Agent under
this Agreement.
7.8 LATE PAYMENTS.
The failure by Customer to pay an invoice within 90 days after receipt
of such invoice or the failure by the Customer to timely pay two consecutive
invoices shall constitute a material breach pursuant to SECTION 16.4(a) below.
The Transfer Agent may terminate this Agreement for such material breach
immediately and shall not be obligated to provide the Customer with 30 days to
cure such breach.
10
7.9 SERVICES REQUIRED BY LEGISLATION. Services required by
legislation or regulatory mandate that become effective after the Effective Date
of this Agreement shall not be part of the Services, and shall be billed by
appraisal.
7.10 OVERTIME CHARGES. Overtime charges will be assessed in the event
of a late delivery to the Transfer Agent of Customer material for mailings to
Shareholders, unless the mail date is rescheduled. Such material includes, but
is not limited to, proxy statements, quarterly and annual reports, dividend
enclosures and news releases.
7.11 BANK ACCOUNTS. The Customer acknowledges that the bank accounts
maintained by EQI in connection with the Services will be in its name and that
EQI may receive investment earnings in connection with the investment at EQI's
risk and for its benefit of funds held in those accounts from time to time.
8. REPRESENTATIONS AND WARRANTIES OF TRANSFER AGENT.
8.1 GOVERNANCE. The Trust Company is a federally chartered limited
purpose national bank duly organized under the laws of the United States and EQI
is a corporation validly existing and in good standing under the laws of the
State of Delaware and each has full corporate power, authority and legal right
to execute, deliver and perform this Agreement. The Trust Company is registered
as a transfer agent under the Securities Exchange Act of 1934, as amended or is
exempt from such registration. The execution, delivery and performance of this
Agreement by Transfer Agent has been duly authorized by all necessary corporate
action and constitutes the legal valid and binding obligation of Transfer Agent
enforceable against Transfer Agent in accordance with its terms.
8.2 COMPLIANCE. The execution, delivery and performance of the
Agreement by Transfer Agent will not violate, conflict with or result in the
breach of any material term, condition or provision of, or require the consent
of any other party to, (i) any existing law, ordinance, or governmental rule or
regulation to which Transfer Agent is subject, (ii) any judgment, order, writ,
injunction, decree or award of any court, arbitrator or governmental or
regulatory official, body or authority which is applicable to Transfer Agent,
(iii) the incorporation documents or by-laws of , or any material agreement to
which Transfer Agent is a party.
8.3 FACILITIES. The Transfer Agent has and will continue to have
access to the necessary facilities, equipment and personnel to perform its
duties and obligations under this Agreement.
8.4 COMPUTER SERVICES. DATA ACCESS SERVICE AND ALL COMPUTER PROGRAMS
AND SOFTWARE SPECIFICATIONS USED IN CONNECTION THEREWITH ARE PROVIDED ON AN AS
IS, AS AVAILABLE BASIS. TRANSFER AGENT EXPRESSLY DISCLAIMS ALL WARRANTIES EXCEPT
THOSE EXPRESSLY STATED HEREIN INCLUDING, BUT NOT LIMITED TO, THE IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. CUSTOMER
HEREBY ACKNOWLEDGES THAT THE DATA ACCESS SERVICE MAY NOT BE OR BECOME AVAILABLE
DUE TO ANY NUMBER OF FACTORS INCLUDING WITHOUT
11
LIMITATION PERIODIC SYSTEM MAINTENANCE, SCHEDULED OR UNSCHEDULED, ACTS OF GOD,
TECHNICAL FAILURE, TELECOMMUICATIONS INFRASTRUCTURE OR DELAY OR DISRUPTION
ATTRIBUTATLE TO VIRUSES, DENIAL OF SERVICE ATTACKS, INCREASED OR FLUCTUATING
DEMAND, AND ACTIONS AND OMISSIONS OF THIRD PARTIES. THEREFORE TRANSFER AGENT
EXPRESSLY DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTY REGARDING SYSTEM AND/OR DATA
ACCESS SERVICE AVAILABILITY, ACCESSABILITY, OR PERFORMANCE.
9. REPRESENTATIONS AND WARRANTIES OF CUSTOMER.
Each Customer represents and warrants to the Transfer Agent that:
9.1 ORGANIZATIONS. It is a corporation duly organized and existing
and in good standing under the laws of Maryland;
9.2 GOVERNANCE. It is empowered under applicable laws and by its
Articles of Incorporation and By-Laws to enter into and perform this Agreement.
All corporate proceedings required by said Articles of Incorporation, By-Laws
and applicable law have been taken to authorize it to enter into and perform
this Agreement; and
9.3 SECURITIES ACT OF 1933. A registration statement under the
Securities Act of 1933, as amended (the "1933 Act") has been filed and is
currently effective, or will be effective prior to the sale of any Shares, and
will remain so effective, and all appropriate state securities law filings have
been made with respect to all the Shares of the Customer being offered for sale
except for any Shares which are offered in a transaction or series of
transactions which are exempt from the registration requirements of the 1933 Act
and state securities laws; information to the contrary will result in immediate
notification to the Transfer Agent.
10. INDEMNIFICATION/LIMITATION OF LIABILITY.
10.1 STANDARD OF CARE. The Transfer Agent shall at all times act in
good faith and agrees to use its best efforts within reasonable time limits to
insure the accuracy of all services performed under this Agreement, but assumes
no responsibility and shall not be liable for loss or damage due to errors
unless said errors are caused by its negligence, bad faith or willful misconduct
or that of its employees as set forth and subject to the limitations set forth
in SECTION 10.4 below.
10.2 CUSTOMER INDEMNITY. The Transfer Agent shall not be responsible
for, and the Customer shall indemnify and hold the Transfer Agent harmless from
and against, any and all losses, claims, damages, costs, charges, counsel fees
and expenses, payments, expenses and liability arising out of or attributable
to:
(a) All actions of the Transfer Agent or its agents or
subcontractors required to be taken pursuant to this Agreement,
provided such actions are taken in good faith and without
negligence or willful misconduct;
(b) The Customer's lack of good faith, negligence or willful
misconduct or the breach of any representation or warranty of
the Customer hereunder;
12
(c) The reasonable reliance or use by the Transfer Agent or its
agents or subcontractors of information, records and documents
which (i) are received by the Transfer Agent or its agents or
subcontractors and furnished to it by or on behalf of the
Customer, and (ii) have been prepared and /or maintained by the
Customer or any other person or firm on behalf of the Customer.
Such other person or firm shall include any former transfer
agent or former registrar, or co-transfer agent or co-registrar
or any current registrar where the Transfer Agent is not the
current registrar;
(d) The reasonable reliance or use by the Transfer Agent or its
agents or subcontractors of any paper or document reasonably
believed to be genuine and to have been signed by the proper
person or persons including Shareholders or electronic
instruction from Shareholders submitted through the shareholder
Internet Services or other electronic means pursuant to the
Security Procedures;
(e) The reasonable reliance on, or the carrying out by the Transfer
Agent or its agents or subcontractors of any instructions or
requests of the Customer's representatives;
(f) The offer or sale of Shares in violation of any federal or state
securities laws requiring that such Shares be registered or in
violation of any stop order or other determination or ruling by
any federal or state agency with respect to the offer or sale of
such Shares;
(g) The negotiations and processing of all checks, including checks
made payable to prospective or existing shareholders which are
tendered to the Transfer Agent for the purchase of Shares
(commonly known as "third party checks");
(h) Any actions taken or omitted to be taken by any former agent of
Customer and arising from Transfer Agent's reliance on the
certified list of holders; and
(i) The negotiation, presentment, delivery or transfer of Shares
through the Direct Registration System Profile System.
10.3 INSTRUCTIONS. At any time the Transfer Agent may apply to any
officer of the Customer for instruction, and may consult with legal counsel for
the Transfer Agent or the Customer with respect to any matter arising in
connection with the services to be performed by the Transfer Agent under this
Agreement, and Transfer Agent and its agents and subcontractors shall not be
liable and shall be indemnified by the Customer for any action taken or omitted
by it in reliance upon such instructions or upon the advice or opinion of such
counsel. The Transfer Agent, its agents and subcontractors shall be protected
and indemnified in acting upon any paper or document reasonably believed to be
genuine and to have been signed by the proper person or persons, or upon any
instruction, information, data, records or documents provided the Transfer Agent
or its agents or subcontractors by telephone, in person, machine readable input,
telex, CRT data entry or similar means authorized by the Customer, and shall not
be held to have notice of any change of authority of any person, until receipt
of written notice thereof from the Customer. The Transfer Agent, its agents and
subcontractors shall also be protected and indemnified in
13
recognizing stock certificates which are reasonably believed to bear the proper
manual or facsimile signatures of officers of the Customer, and the proper
countersignature of any former transfer agent or former registrar, or of a
co-transfer agent or co-registrar.
10.4 TRANSFER AGENT INDEMNIFICATION/LIMITATION OF LIABILITY. Transfer
Agent shall be responsible for and shall indemnify and hold the Customer
harmless from and against any and all losses, claims, damages, costs, charges,
counsel fees and expenses, payments, expenses and liability arising out of or
attributable to Transfer Agent's refusal or failure to comply with the terms of
this Agreement, or which arise out of Transfer Agent's negligence or willful
misconduct or which arise out of the breach of any representation or warranty of
Transfer Agent hereunder, for which Transfer Agent is not entitled to
indemnification under this Agreement; provided, however, that Transfer Agent's
aggregate liability during any term of this Agreement with respect to, arising
from, or arising in connection with this Agreement, or from all services
provided or omitted to be provided under this Agreement, whether in contract, or
in tort, or otherwise, is limited to, and shall not exceed, the amounts paid
hereunder by the Customer to Transfer Agent as fees and charges, but not
including reimbursable expenses, during the three (3) calendar years immediately
preceding the event for which recovery from the Transfer Agent is being sought.
10.5 NOTICE. In order that the indemnification provisions contained
in this Section shall apply, upon the assertion of a claim for which one party
may be required to indemnify the other, the party seeking indemnification shall
promptly notify the other party of such assertion, and shall keep the other
party advised with respect to all developments concerning such claim. The
indemnifying party shall have the option to participate with the indemnified
party in the defense of such claim or to defend against said claim in its own
name or the name of the indemnified party. The indemnified party shall in no
case confess any claim or make any compromise in any case in which the
indemnifying party may be required to indemnify it except with the indemnifying
party's prior written consent.
11. DAMAGES.
NO PARTY SHALL BE LIABLE FOR ANY INCIDENTAL, INDIRECT, SPECIAL OR
CONSEQUENTIAL DAMAGES OF ANY NATURE WHATSOEVER, INCLUDING, BUT NOT LIMITED TO,
LOSS OF ANTICIPATED PROFITS, OCCASIONED BY A BREACH OF ANY PROVISION OF THIS
AGREEMENT EVEN IF APPRISED OF THE POSSIBILITY OF SUCH DAMAGES.
12. RESPONSIBILITIES OF THE TRANSFER AGENT.
The Transfer Agent undertakes the duties and obligations imposed by this
Agreement upon the following terms and conditions, by all of which the Customer,
by its acceptance hereof, shall be bound:
12.1 Whenever in the performance of its duties hereunder the Transfer
Agent shall deem it necessary or desirable that any fact or matter be proved or
established prior to taking or suffering any action hereunder, such fact or
matter may be deemed to be conclusively proved and established by a certificate
14
signed by the Chairman of the Board, the President, any Vice President, the
Treasurer, any Assistant treasurer, the Secretary or any Assistant Secretary of
the Customer and delivered to the Transfer Agent. Such certificate shall be full
authorization to the recipient for any action taken or suffered in good faith by
it under the provisions of this Agreement in reliance upon such certificate.
12.2 The Customer agrees that it will perform, execute, acknowledge
and deliver or cause to be performed, executed, acknowledged and delivered all
such further and other acts, instruments and assurances as may reasonably be
required by the Transfer Agent for the carrying out, or performing by the
Transfer Agent of the provisions of this Agreement.
12.3 Transfer Agent, any of its affiliates or subsidiaries, and any
stockholder, director, officer or employee of the Transfer Agent may buy, sell
or deal in the securities of the Customer or become pecuniary interested in any
transaction in which the Customer may be interested, or contract with or lend
money to the Customer or otherwise act as fully and freely as though it were not
appointed as agent under this Agreement. Nothing herein shall preclude the
Transfer Agent from acting in any other capacity for the Customer or for any
other legal entity.
12.4 No provision of this Agreement shall require the Transfer Agent
to expend or risk its own funds or otherwise incur any financial liability in
the performance of any of its duties hereunder or in the exercise of its rights
if it shall believe in good faith that repayment of such funds or adequate
indemnification against such risk or liability is not reasonably assured to it.
13. COVENANTS OF THE CUSTOMER AND TRANSFER AGENT.
13.1 CUSTOMER CORPORATE AUTHORITY. The Customer shall furnish to the
Transfer Agent the following:
(a) A copy of the Articles of Incorporation and By-Laws of the
Customer;
(b) Copies of all material amendments to its Articles of
Incorporation or By-Laws made after the date of this Agreement,
promptly after such amendments are made; and
(c) A certificate of the Customer as to the Shares authorized,
issued and outstanding, as well as a description of all reserves
of unissued Shares relating to the exercise of options, warrants
or a conversion of debentures or otherwise.
13.2 TRANSFER AGENT FACILITIES. The Transfer Agent hereby agrees to
establish and maintain facilities and procedures reasonably acceptable to the
Customer for the safekeeping of stock certificates, check forms and facsimile
signature imprinting devices, if any, and for the preparation, use, and
recordkeeping of such certificates, forms and devices.
13.3 RECORDS. The Transfer Agent shall keep records relating to the
services to be performed hereunder, in the form and manner as it may deem
advisable. The Transfer Agent agrees that all such records prepared or
maintained by it relating to the services performed hereunder are the property
of the Customer and will be preserved, maintained and made available in
accordance with the requirements of law, and will be surrendered promptly to the
Customer on and in accordance with its request.
15
13.4 CONFIDENTIALITY. The Transfer Agent and the Customer agree that
all books, records, information and data pertaining to the business of the other
party which are exchanged or received pursuant to the negotiation or the
carrying out of this Agreement shall remain confidential, and shall not be
voluntarily disclosed to any other person, except as may be required by law.
13.5 NON-SOLICITATION OF TRANSFER AGENT EMPLOYEES. Customer shall not
attempt to hire or assist with the hiring of an employee of EquiServe or
affiliated companies or encourage any employee to terminate their relationship
with EquiServe or its affiliated companies.
13.6 NOTIFICATION. Customer shall notify Transfer Agent as soon as
possible in advance of any stock split, stock dividend similar event which may
affect the Shares, and any bankruptcy, insolvency, moratorium or other
proceeding regarding Customer affecting the enforcement of creditors' rights.
Notwithstanding any other provision of the Agreement to the contrary, Transfer
Agent will have no obligation to perform any Services under the Agreement
subsequent to the commencement of any bankruptcy, insolvency, moratorium or
other proceeding regarding Customer affecting the enforcement of creditor'
rights unless Transfer Agent receives assurance satisfactory to it that it will
receive full payment for such services. Further, Customer may not assume the
Agreement after the filing of a bankruptcy petition without transfer agents
written consent.
14. DATA ACCESS SERVICE AND PROPRIETARY INFORMATION.
14.1 Transfer Agent has developed a data access service that enables
the Customer to access the Customer's shareholder records maintained on Transfer
Agent's computer system through the Internet or remote access, as the case may
be (the "Data Access Service"). The Customer wishes to use such Data Access
Service subject to the terms and conditions set forth herein. Therefore, the
Customer and Transfer Agent agree as follows:
14.2 ACCESS TO SHAREHOLDER DATA.
The Service provided to the Customer pursuant to this Agreement shall
include granting the Customer access to the Shareholder, Customer and proxy
information ("Shareholder Data") maintained on the records database for the
purpose of examining, maintaining, editing, or processing transactions with
respect to Shareholder Data.
14.3 PROCEDURES FOR ACCESS.
To use the Data Access Service, the Customer must access through the
Internet or remote terminal, as the case may be, pursuant to the procedures
provided by Transfer Agent. Such access is accomplished by entering a unique
Customer identification ("Customer ID(s)") and passwords ("Password(s)")
assigned to the Customer by Transfer Agent. Each Customer ID and Password
assigned to the Customer is for use only by the Customer. The Customer shall
establish and maintain reasonable security and control over all such Customer
IDs and Passwords. Transfer Agent shall maintain reasonable security and control
over each Customer ID. After Transfer Agent assigns the Customer a Password, the
Customer shall change the Password. The Customer recognizes that Transfer Agent
does not have knowledge of the Password, which is selected by the Customer and
is within the Customer's exclusive control after
16
the necessary change. The Customer may change any Password thereafter at any
time. Customer agrees to notify Transfer Agent immediately if any employee of
Customer granted access to the Data Access Service leaves the employ of the
Customer, in order to enable Transfer Agent to terminate such employee's access.
14.4 PROPRIETARY INFORMATION.
The Customer acknowledges that the databases, computer programs, screen
formats, report formats, interactive design techniques, and documentation
manuals furnished to the Customer by the Transfer Agent as part of the Data
Access Service to access Shareholder Data maintained by the Transfer Agent on
data bases under the control and ownership of the Transfer Agent or other third
party constitute copyrighted, trade secret, or other proprietary information
(collectively, "Proprietary Information") of substantial value to the Transfer
Agent or other third party. In no event shall Proprietary Information be deemed
Shareholder Data. The Customer agrees to treat all Proprietary Information as
proprietary to the Transfer Agent and further agrees that it shall not divulge
any Proprietary Information to any person or organization except as may be
provided hereunder. Without limiting the foregoing, the Customer agrees for
itself and its employees and agents:
(a) to refrain from copying or duplicating in any way the
Proprietary Information, other than to print out pages
reflecting Shareholder Data to provide to shareholders or for
Customer's internal use;
(b) to refrain from obtaining unauthorized access to any portion of
the Proprietary Information, and if such access is inadvertently
obtained, to inform Transfer Agent in a timely manner of such
fact and dispose of such information in accordance with Transfer
Agent's instructions;
(c) to refrain from causing or allowing the Proprietary Information
from being retransmitted to any other computer facility or other
location, except with the prior written consent of Transfer
Agent;
(d) that the Customer shall have access only to those authorized
transactions agreed upon by the parties; and
(e) to honor all reasonable written requests made by Transfer Agent
to protect at Transfer Agent's expense the rights of Transfer
Agent Proprietary Information at common law, under federal
copyright law and under other federal or state law.
Each party shall take reasonable efforts to advise its employees of their
obligations pursuant to this SECTION 14.
14.5 CONTENT. If the Customer notifies the Transfer Agent that any
part of the Data Access Service does not operate in material compliance with the
user documentation provided by the Transfer Agent for such service, the Transfer
Agent shall endeavor in a timely manner to correct such failure. Organizations
from which the Transfer Agent may obtain certain data included in the Services
are solely responsible for the contents of such data and the Customer
17
agrees to make no claim against the Transfer Agent arising out of the contents
of such third party data, including, but not limited to, the accuracy thereof.
14.6 TRANSACTIONS. If the transactions available to the Customer
include the ability to originate electronic instructions to the Transfer Agent
in order to (i) effect the transfer or movement of Shares or direct EQI to
transfer cash or (ii) transmit Shareholder information or other information,
then in such event the Transfer Agent shall be entitled to rely on the validity
and authenticity of such instructions without undertaking any further inquiry as
long as such instructions are undertaken in conformity with the Security
Procedures.
15. CONFIDENTIALITY.
15.1 COVENANT. The Transfer Agent and the Customer agree that they
will not, at any time during the term of this Agreement or after its
termination, reveal, divulge, or make known to any person, firm, corporation or
other business organization, any customers' lists, trade secrets, cost figures
and projections, profit figures and projections, or any other secret or
confidential information whatsoever, whether of the Transfer Agent or of the
Customer, used or gained by the Transfer Agent or the Customer during
performance under this Agreement including "Nonpublic Personal Information" (as
defined in Regulation S-P promulgated by the Securities and Exchange Commission)
of Shareholders. The Transfer Agent has in place procedures reasonably designed
to comply with this covenant. On an annual basis, the Transfer Agent will
provide at the Customer's request a copy of our annual audit letter prepared by
Transfer Agent's Auditor. The Customer and the Transfer Agent further covenant
and agree to retain all such knowledge and information acquired during and after
the term of this Agreement respecting such lists, trade secrets, or any secret
or confidential information whatsoever in trust for the sole benefit of the
Transfer Agent or the Customer and their successors and assigns. The above
prohibition of disclosure shall not apply to the extent that the Transfer Agent
must disclose such data to its sub-contractor or agent for purposes of providing
services under this Agreement.
15.2 REQUEST FOR RECORDS. In the event that any requests or demands
are made for the inspection of the Shareholder records of the Customer, other
than request for records of Shareholders pursuant to standard subpoenas from
state or federal government authorities (e.g., in divorce and criminal actions),
the Transfer Agent will endeavor to notify the Customer and to secure
instructions from an authorized officer of the Customer as to such inspection.
The Transfer Agent expressly reserves the right, however, to exhibit the
Shareholder records to any person whenever it is advised by counsel that it may
be held liable for the failure to exhibit the Shareholder records to such person
or if required by law or court order.
16. TERM AND TERMINATION.
16.1 TERM. The Initial Term of this Agreement shall be three (3)
years from the date first stated above unless terminated pursuant to the
provisions of this SECTION 16. Unless a terminating party gives written notice
to the other party sixty (60) days before the expiration of the Initial Term
this Agreement will renew automatically from year to year ("Renewal Term").
Sixty (60) days before the expiration of the Initial Term or a Renewal Term the
parties to this Agreement will agree upon a Fee Schedule for the upcoming
Renewal Term.
18
16.2 EARLY TERMINATION. Notwithstanding anything contained in this
Agreement to the contrary, should Customer desire to move any of its Services
provided by the Transfer Agent hereunder to a successor service provider prior
to the expiration of the then current Initial or Renewal Term, or without the
required notice period, the Transfer Agent shall make a good faith effort to
facilitate the conversion on such prior date, however, there can be no guarantee
that the Transfer Agent will be able to facilitate a conversion of Services on
such prior date.
16.3 EXPIRATION OF TERM. After the expiration of the Initial Term or
Renewal Term whichever currently in effect, should either party exercise its
right to terminate, all reasonable out-of-pocket expenses or costs associated
with the movement of records and material will be borne by the Customer.
Additionally, except when the Transfer Agent terminates this Agreement other
than pursuant to Section 16.4(a) or Section 16.4(b) the Transfer Agent reserves
the right to charge for any other reasonable expenses associated with such
termination and a de-conversion/transition fee in an amount equal to 15% of the
aggregate fees incurred by Customer during the immediately preceding twelve (12)
month period, provided, however, such fee shall in no event be less than three
thousand, seven hundred and fifty dollars ($3,750.00).
16.4 TERMINATION.
This Agreement may be terminated in accordance with the following:
(a) at any time by any party upon a material breach of a
representation, covenant or term of this Agreement by any other
unaffiliated party which is not cured within a period not to
exceed thirty (30) days after the date of written notice thereof
by one of the other parties; and
(b) by Transfer Agent, at any time, in the event that during the
term of this Agreement, a bankruptcy or insolvency proceeding is
filed by or against Customer or a trustee or receiver is
appointed for any substantial part of Customer's property (and
in a case of involuntary bankruptcy, insolvency or receivership
proceeding, there is entered an order for relief, or order
appointing a receiver or some similar order or decree and
Customer does not succeed in having such order lifted or stayed
within sixty (60) days from the date of its entry), or Customer
makes an assignment of all or substantially all of its property
for the benefit of creditors or ceases to conduct its operations
in the normal course or business.
(c) by either party, with 120 days written notice.
16.5 RECORDS. Upon receipt of written notice of termination, the
parties will use commercially practicable efforts to effect an orderly
termination of this Agreement. Without limiting the foregoing, Transfer Agent
will deliver promptly to Customer, in machine readable form on media as
reasonably requested by Customer, all Shareholder and other records including
non-public Personal Information, files and data supplied to or compiled by
Transfer Agent on behalf of Customer retaining no copies except those required
to be maintained by the Transfer Agent, pursuant to applicable law or
regulation.
19
17. ASSIGNMENT.
17.1 AFFILIATES. The Transfer Agent may, without further consent of
the Customer assign its rights and obligations hereunto to any affiliated
transfer agent registered under Section 17A(c)(2) of the Exchange Act.
17.2 SUB-CONTRACTORS. Transfer Agent may, without further consent on
the part of Customer, subcontract with other subcontractors for telephone and
mailing services as may be required from time to time; provided, however, that
the Transfer Agent shall be as fully responsible to the Customer for the acts
and omissions of any subcontractor as it is for its own acts and omissions.
18. UNAFFILIATED THIRD PARTIES.
Nothing herein shall impose any duty upon the Transfer Agent in
connection with or make the Transfer Agent liable for the actions or omissions
to act of unaffiliated third parties such as, by way of example and not
limitation, airborne services, the U.S. mails and telecommunication companies,
provided, if the Transfer Agent selected such company, the Transfer Agent shall
have exercised due care in selecting the same.
19. MISCELLANEOUS.
19.1 NOTICES.
Any notice or communication by the Transfer Agent or the Customer to the
other is duly given if in writing and delivered in person or mailed by first
class mail, postage prepaid, telecopier or overnight air courier guaranteeing
next day delivery, to the other's address:
If to the Customer:
Lazard Asset Management LLC
00 Xxxxxxxxxxx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attn: General Counsel
If to the Transfer Agent:
EquiServe Trust Company, N.A.
c/o EquiServe, Inc.
000 Xxxxxx Xxxxxx
Xxxxxx, XX 00000
Telecopy No.: (000) 000-0000
Attn: General Counsel
The Transfer Agent and the Customer may, by notice to the other,
designate additional or different addresses for subsequent notices or
communications.
20
19.2 SUCCESSORS.
All the covenants and provisions of this agreement by or for the benefit
of the Customer or the Transfer Agent shall bind and inure to the benefit of
their respective successors and assigns hereunder.
19.3 AMENDMENTS.
This Agreement may be amended or modified by a written amendment
executed by the parties hereto and, to the extent required, authorized or
approved by a resolution of the Board of Directors of the Customer.
19.4 SEVERABILITY.
If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction or other authority to be invalid, void
or unenforceable, the remainder of the terms, provision, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.
19.5 GOVERNING LAW.
This Agreement shall be governed by the laws of the Commonwealth of
Massachusetts
19.6 FORCE MAJEURE.
Notwithstanding anything to the contrary contained herein, Transfer
Agent shall not be liable for any delays or failures in performance resulting
from acts beyond its reasonable control including, without limitation, acts of
God, terrorist acts, shortage of supply, breakdowns or malfunctions,
interruptions or malfunction of computer facilities, or loss of data due to
power failures or mechanical difficulties with information storage or retrieval
systems, labor difficulties, war, or civil unrest.
19.7 DESCRIPTIVE HEADINGS.
Descriptive headings of the several sections of this Agreement are
inserted for convenience only and shall not control or affect the meaning or
construction of any of the provisions hereof.
19.8 THIRD PARTY BENEFICIARIES.
The provisions of this Agreement are intended to benefit only the
Transfer Agent, the Customer and their respective permitted successors and
assigns. No rights shall be granted to any other person by virtue of this
agreement, and there are no third party beneficiaries hereof.
19.9 SURVIVAL.
All provisions regarding indemnification, warranty, liability and limits
thereon, and confidentiality and protection of proprietary rights and trade
secrets shall survive the termination of this Agreement.
21
19.10 PRIORITIES.
In the event of any conflict, discrepancy, or ambiguity between the
terms and conditions contained in this Agreement and any schedules or
attachments hereto, the terms and conditions contained in this Agreement shall
take precedence.
19.11 MERGER OF AGREEMENT.
This agreement constitutes the entire agreement between the parties
hereto and supersedes any prior agreement with respect to the subject matter
hereof, whether oral or written.
19.12 COUNTERPARTS.
This Agreement may be executed in any number of counterparts and each of
such counterparts shall for all purposes be deemed to be an original, and all
such counterparts shall together constitute but one and the same instrument.
22
IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement
to be executed by one of its officers thereunto duly authorized, all as of the
date first written above.
LAZARD WORLD DIVIDEND & INCOME FUND, INC.
By:
---------------------------------------
Name:
-------------------------------------
Title:
------------------------------------
EQUISERVE TRUST COMPANY, N.A.
EQUISERVE, INC.
ON BEHALF OF BOTH ENTITIES
By:
----------------------------
Name: Xxxxxx X. Xxxxxx
-------------------------
Title: Director
-------------------------
23
