Form of
AMENDED AND RESTATED
EXPENSE LIMITATION AGREEMENT
among
DAILY INCOME FUND
and
XXXXX & XXXX ASSET MANAGEMENT, LLC
and
XXXXX & TANG DISTRIBUTORS, INC.
This EXPENSE LIMITATION AGREEMENT, dated as of July 20, 2006, as amended
and restated on October 16, 2006, December 7, 2006, and May 22, 2007, by and
among the Daily Income Fund (the "Fund")(formerly, the Institutional Daily
Income Fund), on behalf of its Money Market Portfolio, U.S. Treasury Portfolio,
Municipal Portfolio and U.S. Government Portfolio (and together, the
"Portfolios"), with respect to certain classes of the Portfolios, the
Institutional Class, Institutional Service Class, Investor Class, Short Term
Income Shares Class, Retail Class, Pinnacle Class and Investor Service Class
(and together, the "Classes"), Xxxxx & Xxxx Asset Management, LLC (the
"Manager") and Xxxxx & Tang Distributors, Inc. (the "Distributor").
WITNESSETH:
WHEREAS, the Distributor serves as the principal underwriter to each
Portfolio of the Fund pursuant to an Amended and Restated Distribution Agreement
between the Distributor and the Fund, on behalf of its Portfolios, with respect
to the Classes, dated as of October 30, 2000, and amended and restated on July
20, 2006, September 21, 2006 and May 22, 2007;
WHEREAS, the Distributor performs all personal shareholder servicing and
related maintenance of shareholder account functions not performed by the Fund's
transfer agent pursuant to a Shareholder Servicing Agreement with the Fund, on
behalf of its Portfolios, with respect to the Classes, dated October 30, 2000,
as amended and restated on July 20, 2006 and May 22, 2007 (the Institutional
Class and Pinnacle Class are not parties to any Shareholder Servicing Agreement;
WHEREAS, the Manager serves as investment manager to each Portfolio of the
Fund pursuant to an Investment Management Contract between the Manager and the
Fund, on behalf of its Portfolios, dated as of October 30, 2000, as amended on
July 20, 2006; and
WHEREAS, the parties to this Agreement wish to provide for an undertaking
by the Distributor and the Manager to limit distribution, shareholder servicing,
and investment management fees or reimburse expenses of each of the Portfolios
of the Fund in order to ensure the Classes are competitive in the marketplace.
NOW, THEREFORE, for good and valuable consideration, the parties hereto
agree as follows:
The Manager and Distributor hereby agree to limit the fees payable to them
pursuant to the Distribution Agreement, Shareholder Servicing Agreement and
Investment Management Contract, on behalf of the Portfolios, in order to
maintain the total annual fund operating expenses of the Portfolios to not more
than the amounts set forth on Exhibit A (the "Expense Cap Amounts"); provided,
however, that the Manager will only be required to limit its fees pursuant to
this Expense Limitation Agreement to the extent that any waiver of fees by the
Distributor under the Distribution Agreement and Shareholder Servicing Agreement
is not sufficient to maintain the Expense Cap Amounts.
This Agreement became effective on August 1, 2006, and shall remain in
effect until July 31, 2008.
IN WITNESS WHEREOF, the parties have caused this Agreement to be signed by
their respective officers thereunto duly authorized, as of the day and year
first above written.
DAILY INCOME FUND,
Money Market Portfolio
U.S. Treasury Portfolio
Municipal Portfolio
U.S. Government Portfolio
By:
Name:
Title:
XXXXX & XXXX ASSET MANAGEMENT, LLC
By:
Name:
Title:
XXXXX & TANG DISTRIBUTORS, INC.
By:
Name:
Title:
Exhibit A
Amended and Restated on May 22, 2007
Daily Income Fund
Name of Portfolio Total Annual Operating Expenses
Money Market Portfolio 0.20% Institutional Class
0.45% Institutional Service Class
0.65% Investor Class
0.94% Short Term Income Shares Class
1.00% Retail Class
0.20% Pinnacle Class
0.85% Investor Service Class
U.S. Treasury Portfolio 0.20% Institutional Class
0.45% Institutional Service Class
0.63% Investor Class
0.90% Short Term Income Shares Class
1.00% Retail Class
0.20% Pinnacle Class
0.85% Investor Service Class
Municipal Portfolio 0.20% Institutional Class
0.45% Institutional Service Class
0.65% Investor Class
0.76% Short Term Income Shares Class
1.00% Retail Class
1.00% Xxxxxxxxx Class
0.20% Pinnacle Class
0.85% Investor Service Class
U.S. Government Portfolio 0.20% Institutional Class
0.45% Institutional Service Class
0.65% Investor Class
0.85% Short Term Income Shares Class
1.00% Retail Class
0.85% Investor Service Class
