EXHIBIT 23H(1)
AMENDED OPERATING SERVICES AGREEMENT BETWEEN
REGISTRANT AND TRANSNATIONS INVESTMENTS, LLC
AMENDED OPERATING SERVICES AGREEMENT
AMIDEX FUNDS, INC.
THIS AGREEMENT is made and entered into as of the 1st day of May, 1999 and
amended as of July 1, 2000, by and between Amidex Funds, Inc., a Maryland
corporation (the "Fund"), and TransNations Investments, LLC, a Delaware limited
liability company (hereinafter referred to as "Manager").
WHEREAS, the Fund is a diversified, open-end management investment company,
registered under the Investment Company Act of 1940, as amended (the "Act"), and
authorized to issue shares representing interests in and unlimited number of
series of shares of the Fund (each a "Portfolio" and together, the
"Portfolios"); and
WHEREAS, the Fund currently offers the Portfolios listed on Appendix A, attached
hereto and incorporated herein by reference, which Appendix A may be changed
from time to time by the mutual agreement of all Parties to this Agreement; and
WHEREAS, Manager is registered as an investment advisor under the Investment
Advisors Act of 1940, and engages in the business of asset management and the
provision of certain other administrative and record keeping services in
connection therewith; and
WHEREAS, the Fund wishes to engage Manager to provide, or arrange for the
provision of, certain operational services which are necessary for the
day-to-day operations of the Portfolio listed on Appendix A in the manner and on
the terms and conditions hereinafter set forth, and Manager wishes to accept
such engagement;
NOW, THEREFORE, in consideration of the premises and the mutual covenants
hereinafter contained, the Fund and Manager agree as follows:
1. OBLIGATIONS OF MANAGER
(A) SERVICES. The Fund hereby retains Manager to provide, or, upon receipt of
written approval of the Fund, arrange for other companies to provide, the
following services to each Portfolio in the manner and to the extent that
such services are reasonably necessary for the operation of each Portfolio
(collectively, the "Services"):
(1) accounting services and functions, including costs and expenses of any
independent public accountants;
(2) non-litigation related legal and compliance services, including the
expenses of maintaining registration and qualification of the Fund and
the Portfolio under federal, state and any other applicable laws and
regulations;
(3) dividend disbursing agent, dividend reinvestment agent, transfer
agent, and registrar services and functions (including answering
inquiries related to shareholder Portfolio accounts);
(4) custodian and depository services and functions;
(5) distribution, marketing, and/or underwriting services;
(6) independent pricing services;
(7) preparation of reports describing the operations of each Portfolio,
including the costs of providing such reports to broker-dealers,
financial institutions and other organizations which render services
and assistance in connection with the distribution of shares of each
Portfolio;
(8) sub-accounting and recordkeeping services and functions (other than
those books and records required to be maintained by Manager under the
Investment Advisory Agreement between the Fund and Manager dated May
1, 1999, as amended on July 1, 2000), including maintenance of
shareholder records and shareholder information concerning the status
of their Portfolio accounts by investment advisors, broker-dealers,
financial institutions, and other organizations on behalf of Manager;
(9) shareholder and board of directors communication services, including
the costs of preparing, printing and distributing notices of
shareholders' meetings, proxy statements, prospectuses, statements of
additional information, Portfolio reports, and other communications to
the Fund's Portfolio shareholders, as well as all expenses of
shareholders' and board of directors' meetings, including the
compensation and reimbursable expenses of the directors of the Fund;
(10) other day-to-day administrative services, including the costs of
designing, printing, and issuing certificates representing shares of
each Portfolio, and premiums for the fidelity bond maintained by the
Fund pursuant to Section 17(g) of the Act and rules promulgated
thereunder (except for such premiums as may be allocated to third
parties, as insureds thereunder).
(B) EXCLUSIONS FROM SERVICE. Notwithstanding the provisions of Paragraph 1(a)
above, the Services shall not include, and Manager will not be responsible
for, any of the following:
(1) all brokers' commissions, issue and transfer taxes, and other costs
chargeable to the Fund or any Portfolio in connection with securities
transactions to which the Fund or the Portfolio is a party or in
connection with securities owned by the Fund or any Portfolio;
(2) the interest on indebtedness, if any, incurred by the Fund or any
Portfolio;
(3) the taxes, including franchise, income, issue, transfer, business
license, and other corporate fees payable by the Fund or any Portfolio
to federal, state, county, city, or other governmental agents;
(4) the expenses, including fees and disbursements of counsel, in
connection with litigation by or against the Fund or any Portfolio;
and
(5) any other extraordinary expense of the Fund or any Portfolio.
(C) BOOKS AND RECORDS. All books and records prepared and maintained by Manager
for the Fund under this Agreement shall be the property of the Fund and,
upon request therefor, Manager shall surrender to the Fund such of the
books and records so requested.
(D) STAFF AND FACILITIES. Manager assumes and shall pay for maintaining the
staff, personnel, space, equipment and facilities necessary to perform its
obligations under this Agreement.
2. OBLIGATIONS OF THE FUND
(A) FEE. The Fund will pay to Manager on the last day of each month, at an
annual rate, computed daily based upon the net asset value of the Portfolio
as determined by a valuation made in accordance with the Fund's procedure
for calculating Portfolio net asset value as described in the Fund's
Prospectus and/or Statement of Additional Information, the fees for each
Portfolio as set forth on Appendix B to this Agreement, as such Appendix B
may be changed from time to time by mutual agreement of the parties. During
any period when the determination of a Portfolio's net asset value is
suspended by the directors of the Fund, the net asset value of a share of
the Portfolio as of the last business day prior to such suspension shall,
for the purpose of this Paragraph 2(a), be deemed to be the net asset value
at the close of each succeeding business day until it is again determined.
(B) INFORMATION. The Fund will, from time to time, furnish or otherwise make
available to Manager such information relating to the business and affairs
of the Portfolio as Manager may reasonably require in order to discharge
its duties and obligations hereunder.
3. TERM.
This Agreement shall remain in effect until April 30, 2001, and from year
to year thereafter provided such continuance is approved at least annually
by
(1) the vote of a majority of the Board of Directors of the Fund or
(2) a vote of a "majority" (as that term is defined in the Investment
Company Act of 1940) of the Fund's outstanding securities,
(3) provided that in either event the continuance is also approved by the
vote of a majority of the directors of the Fund who are not parties to
this Agreement or "interested persons" (as defined in the Act) of any
such party, which vote must be cast in person at a meeting called for
the purpose of voting on such approval;
provided, however, that;
(a) the Fund, at any time and without the payment of any penalty may
terminate this Agreement upon 120 days written notice to Manager;
(b) the Agreement shall immediately terminate in the event of its
assignment (within the meaning of the Act and the Rules thereunder);
and
(c) Manager may terminate this Agreement without payment of penalty on 120
days written notice to the Fund.
4. NOTICES.
Except as otherwise provided in this Agreement, any notice or other
communication required by or permitted to be given in connection with this
Agreement will be in writing and will be delivered in person or sent by first
class mail, postage prepaid or by prepaid overnight delivery service to the
respective parties as follows:
If to the Fund: If to the Adviser:
--------------- ------------------
Amidex Funds, Inc TransNations Investments, LLC
00 Xxxxxxxx, Xxxxx 000 26 Broadway, Suite 741
New York, New York 10004 Xxx Xxxx, Xxx Xxxx 00000
Xx. Xxxxxxxx X. Xxxxxxxxx Xx. Xxxxxxxx X. Xxxxxxxxx
President President
5. MISCELLANEOUS
(A) PERFORMANCE REVIEW. Manager will permit representatives of the Fund,
including the Fund's independent auditors, to have reasonable access to the
personnel and records of Manager in order to enable such representatives to
monitor the quality of services being provided and the level of fees due
Manager pursuant to this Agreement. In addition, Manager shall promptly
deliver to the board of directors of the Fund such information as may
reasonably be requested from time to time to permit the board of directors
to make an informed determination regarding continuation of this Agreement
and the payments contemplated to be made hereunder.
(B) CHOICE OF LAW. This Agreement shall be construed in accordance with the
laws of the State of Maryland and the applicable provisions of the Act. To
the extent the applicable law of the State of Maryland or any of the
provisions herein conflict with the applicable provisions of the Act, the
latter shall control.
IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement on the day and year first above written.
AMIDEX FUNDS, INC. TRANSNATIONS INVESTMENTS, LLC
______________________________ ______________________________
BY: XXXXXXXX X. XXXXXXXXX BY: XXXXXXXX X. XXXXXXXXX
President President
ATTEST: ATTEST:
By: __________________________ By: __________________________
Secretary Secretary
Appendix A
AMIDEX Funds, Inc.
Portfolios of the Fund
THE FOLLOWING PORTFOLIOS AND CLASSES OF SHARES ARE OFFERED BY THE TRUST AND
SUBJECT TO THIS AGREEMENT:
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Class A Class B Class C No-Load
Name of Portfolio Shares Shares Shares Shares
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AMIDEX 35 MUTUAL FUND X X X X
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ISDAQ MUTUAL FUND X X X X
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Appendix B
AMIDEX Funds, Inc.
Compensation Schedule
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Annual Fee Rate, as percentage
of average daily net assets
Name of Portfolio
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AMIDEX 35 MUTUAL FUND 1.70%
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ISDAQ MUTUAL FUND 1.70%
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