FORM OF MUTUAL FUND SERVICES AGREEMENT
Transfer Agency Services
between
Clarion Investment Trust
and
Unified Fund Services, Inc.
June ____, 2002
Exhibit A - Portfolio Listing
Exhibit B - Transfer Agency Services Description
Exhibit C - Fees and Expenses
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FORM OF MUTUAL FUND SERVICES AGREEMENT
AGREEMENT (this "Agreement"), dated as of June ___, 2002, between
Clarion Investment Trust, a Delaware business trust (the "Trust"), on behalf of
its series, Clarion Total Return Fund (a "Trust" as defined below), and Unified
Fund Services, Inc., a Texas corporation ("Unified").
WITNESSETH:
WHEREAS, the Trust is registered as an open-end, management investment
company under the Investment Company Act of 1940, as amended (the "1940 Act");
and
WHEREAS, the Trust wishes to retain Unified to provide certain transfer
agent services with respect to the Trust, and Unified is willing to furnish such
services;
NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein, the parties hereto hereby agree as follows:
Section 1. Appointment. The Trust hereby appoints Unified to provide
transfer agent services for the Trust, subject to the supervision of the Board
of Trustees of the Trust (the "Board"), for the period and on the terms set
forth in this Agreement. Unified accepts such appointment and agrees to furnish
the services herein set forth in return for the compensation as provided in
Section 6 and Exhibit C to this Agreement. The Trust will initially consist of
the portfolios, funds and/or classes of shares (each a "Portfolio"; collectively
the "Portfolios") listed on Exhibit A. The Trust shall notify Unified in writing
of each additional Portfolio and/or class established by the Trust. Each new
Portfolio and/or class shall be subject to the provisions of this Agreement,
except to the extent that the provisions (including those relating to the
compensation and expenses payable by the Trust and its Portfolios) may be
modified with respect to each new Portfolio and/or class in writing by the Trust
and Unified at the time of the addition of the new Portfolio and/or class.
Section 2. Representations and Warranties of Unified. Unified
represents and warrants to the Trust that:
(a) Unified is a corporation duly organized and existing under the
laws of the State of Texas;
(b) Unified is empowered under applicable laws and by its Articles of
Incorporation and By-Laws to enter into and perform this Agreement, and all
requisite corporate proceedings have been taken by Unified to authorize Unified
to enter into and perform this Agreement;
(c) Unified has, and will continue to have, access to the facilities,
personnel and equipment required to fully perform its duties and obligations
hereunder;
(d) no legal or administrative proceedings have been instituted or
threatened against Unified that would impair its ability to perform its duties
and obligations under this Agreement; and
(e) Unified's entrance into this Agreement will not cause a material
breach or be in material conflict with any other agreement or obligation of
Unified or any law or regulation applicable to Unified.
Section 3. Representations and Warranties of the Trust. The Trust
represents and warrants to Unified that:
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(a) the Trust is a business trust duly organized and existing under
the laws of the State of Delaware;
(b) the Trust is empowered under applicable laws and by its Declaration
of Trust and By-Laws to enter into and perform this Agreement, and the Trust has
taken all requisite proceedings to authorize the Trust to enter into and perform
this Agreement;
(c) the Trust is an investment company properly registered under the
1940 Act; a registration statement under the 1940 Act on Form N-lA has been
filed and will be effective and will remain effective during the term of this
Agreement, and all necessary filings under the laws of the states will have been
made and will be current during the term of this Agreement;
(d) no legal or administrative proceedings have been instituted or
threatened against the Trust that would impair its ability to perform its duties
and obligations under this Agreement; and
(e) the Trust's entrance into this Agreement will not cause a material
breach or be in material conflict with any other agreement or obligation of the
Trust or any law or regulation applicable to it.
Section 4. Delivery of Documents. The Trust will promptly furnish to
Unified such copies, properly certified or authenticated, of contracts,
documents and other related information that Unified may reasonably request or
requires to properly discharge its duties. Such documents may include but are
not limited to the following:
(a) Resolutions of the Board authorizing the appointment of Unified to
provide certain transfer agency services to the Trust and approving this
Agreement;
(b) The Trust's Declaration and Agreement of Trust;
(c) The Trust's By-Laws;
(d) The Trust's Notification of Registration on Form N-8A under the
1940 Act as filed with the Securities and Exchange Commission ("SEC");
(e) The Trust's registration statement including exhibits, as amended,
on Form N-1A (the "Registration Statement") under the 1940 Act, as filed with
the SEC;
(f) Copies of the Management Agreement between the Trust and its
investment adviser (the "Advisory Agreement");
(g) Opinions of counsel and auditors reports;
(h) The Trust's Statement of Additional Information and all amendments
and supplements thereto (such Prospectus and Statement of Additional Information
and supplements thereto, as presently in effect and as from time to time
hereafter amended and supplemented, herein called the "Prospectuses"); and
(i) Such other agreements as the Trust may enter into from time to time
including securities lending agreements, futures and commodities account
agreements, brokerage agreements, and options agreements.
Section 5. Services Provided by Unified.
(a) Unified will provide the following services subject to the control,
direction and supervision
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of the Board and in compliance with the objectives, policies and limitations set
forth in the Trust's Registration Statement, Declaration of Trust and By-Laws;
applicable laws and regulations; and all resolutions and policies implemented by
the Board:
(i) Transfer Agency, as described on Exhibit B to this Agreement.
(ii) Dividend Disbursing. Unified will serve as the Trust's dividend
disbursing agent. Unified will prepare and mail checks, place wire transfers of
credit income and capital gain payments to shareholders. The Trust will advise
Unified in advance of the declaration of any dividend or distribution and the
record and payable date thereof. Unified will, on or before the payment date of
any such dividend or distribution, notify the Trust's Custodian of the estimated
amount required to pay any portion of such dividend or distribution payable in
cash, and on or before the payment date of such distribution, the Trust will
instruct its Custodian to make available to Unified sufficient funds for the
cash amount to be paid out. If a shareholder is entitled to receive additional
shares by virtue of any such distribution or dividend, appropriate credits will
be made to each shareholder's account. Such shareholders will receive a
confirmation from Unified indicating the number of shares credited to his/her
account.
(b) Unified will also:
(i) provide office facilities with respect to the provision of the
services contemplated herein (which may be in the offices of Unified or a
corporate affiliate of Unified);
(ii) provide or otherwise obtain personnel sufficient, in Unified's
sole discretion, for provision of the services contemplated herein;
(iii) furnish equipment and other materials, which Unified, in its sole
discretion, believes are necessary or desirable for provision of the services
contemplated herein; and
(iv) keep records relating to the services provided hereunder in such
form and manner as set forth on Exhibit B as Unified may otherwise deem
appropriate or advisable, all in accordance with the 1940 Act. To the extent
required by Section 31 of the 1940 Act and the rules thereunder, Unified agrees
that all such records prepared or maintained by Unified relating to the services
provided hereunder are the property of the Trust and will be preserved for the
periods prescribed under Rule 31a-2 under the 1940 Act, maintained at the
Trust's expense, and made available in accordance with such Section and rules.
Unified further agrees to surrender promptly to the Trust upon its request and
cease to retain in its records and files those records and documents created and
maintained by Unified pursuant to this Agreement.
Section 6. Fees: Expenses: Expense Reimbursement.
(a) As compensation for the services rendered to the Trust pursuant to
this Agreement the Trust shall pay, on behalf of each Portfolio, Unified monthly
fees determined as set forth on Exhibit C to this Agreement. Such fees are to be
billed monthly and shall be due and payable upon receipt of the invoice. Upon
any termination of this Agreement and before the end of any month, the fee for
the part of the month before such termination shall be equal to the fee normally
due for the full monthly period and shall be payable upon the date of
termination of this Agreement.
(b) For the purpose of determining fees calculated as a function of a
Portfolio's net assets, the value of the Portfolio's net assets shall be
computed as required by the Prospectus, generally accepted accounting
principles, and resolutions of the Board.
(c) Unified will from time to time employ or associate with such person
or persons as may be
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appropriate to assist Unified in the performance of this Agreement. Such person
or persons may be officers and employees who are employed or designated as
officers by both Unified and the Trust. The compensation of such person or
persons for such employment shall be paid by Unified and no obligation will be
incurred by or on behalf of the Portfolio in such respect.
(d) Unified will bear all of its own expenses in connection with the
performance of the services under this Agreement except as otherwise expressly
provided herein. The Trust agrees, on behalf of each Portfolio to promptly
reimburse Unified for any equipment and supplies specially ordered by or for the
relevant Portfolio or Portfolios through Unified and for any other expenses not
contemplated by this Agreement that Unified may incur on a Portfolio's behalf at
the Trust's request or as consented to by the Trust. Such other expenses to be
incurred in the operation of a Portfolio and to be borne by the relevant
Portfolio (or some other party other than Unified or its affiliates), include,
but are not limited to: taxes; interest; brokerage fees and commissions;
salaries and fees of officers and Trustees who are not officers, Trustees,
shareholders or employees of Unified, or the Portfolio's investment adviser or
distributor; SEC and state Blue Sky registration and qualification fees, levies,
fines and other charges; advisory fees; charges and expenses of custodians;
insurance premiums including fidelity bond premiums; auditing and legal
expenses; costs of maintenance of corporate existence; expenses of typesetting
and printing of prospectuses and for distribution to current shareholders of the
Portfolio; expenses of printing and production cost of shareholders' reports and
proxy statements and materials; costs and expense of Trust stationery and forms;
costs and expenses of special telephone and data lines and devices; costs
associated with corporate, shareholder, and Board meetings; and any
extraordinary expenses and other customary Trust expenses.
(e) The Trust may request additional services, additional processing,
or special reports. Such requests may be provided by Unified at additional
charges. In this event, the Trust shall submit such requests in writing together
with such specifications as may be reasonably required by Unified, and Unified
shall respond to such requests in the form of a price quotation. The Trust's
written acceptance of the quotation must be received prior to implementation of
such request. Additional services will be charged at Unified's standard rates.
(f) All fees, out-of-pocket expenses, or additional charges of Unified
shall be billed on a monthly basis and shall be due and payable upon receipt of
the invoice.
Unified will render, after the close of each month in which services
have been furnished, a statement for each Portfolio reflecting all of the
charges for such month. Charges remaining unpaid after thirty (30) days, other
than such charges as may be disputed in good faith by the Portfolio, shall bear
interest in finance charges equivalent to, in the aggregate, the Prime Rate (as
publicly announced by Firstar Bank, N.A., from time to time) plus 2.00% per year
and all costs and expenses of effecting collection of any such sums, including
reasonable attorney's fees, shall be paid by the Trust to Unified.
In the event that a Portfolio is more than sixty (60) days delinquent
in its payments of monthly xxxxxxxx in connection with this Agreement (with the
exception of specific amounts which may be contested in good faith by the
Portfolio), this Agreement may be terminated with respect to the Portfolio or
the Trust upon thirty (30) days' written notice to the Trust by Unified. The
Trust must notify Unified in writing of any contested amounts within thirty (30)
days of receipt of a billing for such amounts. Disputed amounts are not due and
payable while they are being investigated.
Section 7. Proprietary and Confidential Information. Unified agrees on
behalf of itself and its employees to treat confidentially and as proprietary
information of the Trust, all records and other information relative to the
Trust's prior, present or potential shareholders, and to not use such records
and information for any purpose other than performance of Unified's
responsibilities and duties hereunder. Unified may seek a waiver of such
confidentiality provisions by furnishing reasonable prior notice to the
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Trust and obtaining approval in writing from the Trust, which approval shall not
be unreasonably withheld and may not be withheld where the service agent may be
exposed to civil or criminal contempt proceedings for failure to comply, when
requested to divulge such information by duly constituted authorities. Waivers
of confidentiality are automatically effective without further action by Unified
with respect to Internal Revenue Service levies, subpoenas and similar actions,
or with respect to any request by the Trust.
Section 8. Duties, Responsibilities and Limitations of Liability.
(a) In the performance of its duties hereunder, Unified shall be
obligated to exercise due care and diligence, and to act in good faith. In
performing its services hereunder, Unified shall be entitled to rely on any oral
or written instructions, notices or other communications from the Trust and its
officers and Trustees, investors, agents and the Custodian or other service
providers which Unified reasonably believe to be genuine, valid and authorized.
Unified shall also be entitled to consult with and rely on the advice and
opinions of outside legal counsel retained by the Trust, as necessary or
appropriate.
(b) Unified shall not be liable for any error of judgment or mistake of
law or for any loss or expense suffered by a Portfolio, in connection with the
matters to which this Agreement relates, except for a loss or expense caused by
or resulting from willful misfeasance, bad faith or negligence on Unified's part
in the performance of its duties or from reckless disregard by Unified of its
obligations and duties under this Agreement. Any person, even though also an
officer, director, partner, employee or agent of Unified, who may be or become
an officer, director, partner, employee or agent of the Trust, shall be deemed
when rendering services to the Trust or acting on any business of the Trust
(other than services or business in connection with Unified's duties hereunder)
to be rendering such services to or acting solely for relevant Portfolio and not
as an officer, director, partner, employee or agent or person under the control
or direction of Unified even though paid by Unified.
(c) Except for a loss or expense caused by or resulting from willful
misfeasance, bad faith or negligence on Unified's part in the performance of its
duties or from reckless disregard by Unified of its obligations and duties under
this Agreement, Unified shall not be responsible for, and the relevant Portfolio
shall indemnify and hold Unified harmless from and against, any and all losses,
damages, costs, reasonable attorneys' fees and expenses, payments, expenses and
liabilities arising out of or attributable to:
(I) All actions of Unified or its officers or agents required to be
taken pursuant to this Agreement;
(ii) the reliance on or use by Unified or its officers or agents of
information, records, or documents which are received by Unified or its officers
or agents and furnished to it or them by or on behalf of the Trust or a
Portfolio, and which have been prepared or maintained by the Trust or a
Portfolio or any third party on behalf of the Trust or a Portfolio;
(iii) the Trust's refusal or failure to comply with the terms of this
Agreement or the Trust's lack of good faith, or its actions, or lack thereof
involving negligence or willful misfeasance;
(iv) the breach of any representation or warranty of the Trust
hereunder;
(v) the taping or other form of recording of telephone conversations or
other forms of electronic communications with investors and shareholders, or
reliance by Unified on telephone or other electronic instructions of any person
acting on behalf of a shareholder or shareholder account for which telephone or
other electronic services have been authorized by such shareholder in a manner
consistent with applicable state and Federal laws;
(vi) the reliance on or the carrying out by Unified or its officers or
agents of any proper
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instructions reasonably believed to be duly authorized, or requests of the;
(vii) any delays, inaccuracies, errors in or omissions from data
provided to Unified by data and pricing services;
(viii) the offer or sale of shares by the Trust in violation of any
requirement under the federal securities laws or regulations or the securities
laws or regulations of any state, or in violation of any stop order or other
determination or ruling by any federal agency or any state agency with respect
to the offer or sale of such shares in such state (1) resulting from activities,
actions, or omissions by a Portfolio or its other service providers and agents,
or (2) existing or arising out of activities, actions or omissions by or on
behalf of the Trust or a Portfolio prior to the effective date of this
Agreement; and
(ix) the compliance by each Portfolio, its investment adviser, and its
distributor with applicable securities, tax, commodities and other laws, rules
and regulations.
Section 9. Terms. This Agreement shall become effective on the date
first herein above written. This Agreement may be modified or amended from time
to time by mutual agreement between the parties hereto. This Agreement shall
continue in effect unless terminated by either party on at least ninety (90)
days' prior written notice. Upon termination of this Agreement, the Trust shall
pay to Unified, on behalf of each Portfolio, such compensation and any
reimbursable expenses as may be due under the terms hereof as of the date of
termination or the date that the provision of services ceases, whichever is
sooner.
Should the Trust exercise its right to terminate this Agreement, the
Trust agrees to pay a termination/conversion fee, simultaneous with the transfer
of all Trust records to the successor mutual fund service provider(s), in an
amount equal to the total compensation under this agreement for the 60 day
period immediately preceding the termination notice date. In addition, the Trust
agrees, on behalf of each Portfolio, to pay for all conversion tape set-up fees,
test conversion preparation and processing fees and final conversion fees.
Such compensation to Unified shall be for the expenses incurred in
connection with the retrieval, compilation and movement of books, records and
materials relative to the deconversion or conversion of Trust records to the
successor mutual fund service provider as directed by the Trust. Notwithstanding
the foregoing, any amount owed by the Trust on behalf of a Portfolio to Unified
prior to the termination/conversion shall still be due and payable under the
terms of this Agreement. No such compensation shall be due to Unified if Unified
terminates this Agreement for reasons other than a default by the Trust.
Upon the termination of the Agreement for any reason, Unified agrees to
provide the Trust with complete and accurate transfer agency records and to
assist the Trust in the orderly transfer of accounts and records. Without
limiting the generality of the foregoing, Unified agrees upon termination of
this Agreement:
(a) to deliver to the successor mutual fund service provider(s),
computer tapes containing the Trust's accounts and records together with such
record layouts and additional information as may be necessary to enable the
successor mutual fund service provider(s) to utilize the information therein;
(b) to cooperate with the successor mutual fund service provider(s) in
the interpretation of the Trust's account and records;
(c) to forward all shareholder calls, mail and correspondence to the
new mutual fund service provider(s) upon de-conversion; and
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(d) to act in good faith, to make the conversion as smooth as possible
for the successor mutual fund service provider(s) and the Trust.
Section 10. Notices. Any notice required or permitted hereunder shall
be in writing and shall be deemed to have been given when delivered in person or
by certified mail, return receipt requested, to the parties at the following
address (or such other address as a party may specify by notice to the other):
(a) If to the Trust, to:
Clarion Investment Trust
000 Xxxxxxx Xxxxxx, 0xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: President
(b) If to Unified, to:
Unified Fund Services, Inc.
000 Xxxxx Xxxxxxxxxxxx Xxxxxx
Xxxxxxxxxxxx, Xxxxxxx 00000
Attention: President
Notice shall be effective upon receipt if by mail, on the date of
personal delivery (by private messenger, courier service or otherwise) or upon
confirmed receipt of telex or facsimile, whichever occurs first.
Section 11. Assignability. This Agreement shall not be assigned by
either party hereto without the prior written consent of the other party.
Section 12. Waiver. The failure of a party to insist upon strict
adherence to any term of this Agreement on any occasion shall not be considered
a waiver nor shall it deprive such party of the right thereafter to insist upon
strict adherence to that term or any term of this Agreement. Any waiver must be
in writing signed by the waiving party.
Section 13. Force Majeure. Unified shall not be responsible or liable
for any failure or delay in performance of its obligations under this Agreement
arising out of or caused, directly or indirectly, by circumstances beyond its
control, including without limitations, acts of God, earthquake, fires, floods,
wars, acts of civil or military authorities, or governmental actions, nor shall
any such failure or delay give the Trust the right to terminate this Agreement.
Section 14. Use of Name. The Trust and Unified agree not to use the
other's name nor the names of such other's affiliates, designees, or assignees
in any sales literature or other printed material (other than the Prospectus and
the Registration Statement) written in a manner not previously, expressly
approved in writing by the other or such other's affiliates, designees, or
assignees except where required by the SEC or any state agency responsible for
securities regulation.
Section 15. Amendments. This Agreement may be modified or amended from
time to time by mutual written agreement between the parties. No provision of
this Agreement may be changed, discharged, or terminated orally, but only by an
instrument in writing signed by the party against which enforcement of the
change, discharge or termination is sought.
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Section 16. Severability. If any provision of this Agreement is invalid
or unenforceable, the balance of the Agreement shall remain in effect, and if
any provision is inapplicable to any person or circumstance it shall
nevertheless remain applicable to all other persons and circumstances.
Section 17. Governing Law. This Agreement shall be governed by the
laws of the State of Indiana.
Section 18. Execution. This Agreement may be executed by one or more
counterparts, each of which shall be deemed an original, but all of which
together will constitute one in the same instrument.
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IN WITNESS WHEREOF, the parties hereto have caused this Mutual Trust
Services Agreement to be signed by their respective duly authorized officers as
of the day and year first above written.
CLARION INVESTMENT TRUST
By Date
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Print Name:
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Title
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Attest
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UNIFIED FUND SERVICES, INC.
By Date
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Print Name:
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Title
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By Date
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Print Name:
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Title
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Attest
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EXHIBIT A
to
Mutual Trust Services Agreement
List of Portfolios
CLARION TOTAL RETURN FUND
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EXHIBIT B
to
Mutual Trust Services Agreement
Description of Transfer Agency Services
The following is a general description of the transfer agency services
Unified shall provide to the Trust.
A. Shareholder Recordkeeping. Maintain records showing for each Trust
shareholder the following: (i) name, address and tax identifying number;
(ii) number of shares of each Portfolio; (iii) historical information
including, but not limited to, dividends paid and date and price of all
transactions including individual purchases and redemptions; and (iv) any
dividend reinvestment order, application, dividend address and
correspondence relating to the current maintenance of the account.
B. Shareholder Issuance. Record the issuance of shares of each Portfolio.
Except as specifically agreed in writing between Unified and the Trust,
Unified shall have no obligation when countersigning and issuing and/or
crediting shares to take cognizance of any other laws relating to the issue
and sale of such shares except insofar as policies and procedures of the
Stock Transfer Association recognize such laws.
C. Purchase Orders. Process all orders for the purchase of shares of the Trust
in accordance with the Trust's current registration statement. Upon receipt
of any check or other payment for purchase of shares of the Trust from an
investor, Unified will (i) stamp the envelope with the date of receipt,
(ii) forthwith process the same for collection, (iii) determine the amounts
thereof due the Trust, and notify the Trust of such determination and
deposit, such notification to be given on a daily basis of the total
amounts determined and deposited to the Trust's custodian bank account
during such day. Unified shall then credit the share account of the
investor with the number of Portfolio shares to be purchased made on the
date such payment is received by Unified, as set forth in the Trust's
current registration statement and shall promptly mail a confirmation of
said purchase to the investor, all subject to any instructions which the
Trust may give to Unified with respect to the timing or manner of
acceptance of orders for shares relating to payments so received by it. The
Trust, however will be responsible for the collection of any aged
receivables as a result of shareholder purchases.
D. Redemption Orders. Receive and stamp with the date of receipt all requests
for redemptions or repurchase of shares, and process redemptions and
repurchase requests as follows: (i) if such redemption request complies
with the applicable standards approved by the Trust, Unified shall on each
business day notify the Trust of the total number of shares presented and
covered by such requests received by Unified on such day; (ii) on or prior
to the seventh calendar day succeeding any such requests received by
Unified, Unified shall notify the Custodian, subject to instructions from
the Trust, to transfer monies to such account as designated by Unified for
such payment to the redeeming shareholder of the applicable redemption or
repurchase price; (iii) if any such request for redemption or repurchase
does not comply with applicable standards, Unified shall promptly notify
the investor of such fact, together with the reason therefore, and shall
effect such redemption at the Trust's price next determined after receipt
of documents complying with said standards, or, at such other time as the
Trust shall so direct.
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E. Telephone Orders. Process redemptions, exchanges and transfers of Trust
shares upon telephone instructions from qualified shareholders in
accordance with the procedures set forth in the Trust's current
registration statement. Unified shall be permitted to redeem, exchange
and/or transfer Trust shares from any account for which such services have
been authorized.
F. Transfer of Shares. Upon receipt by Unified of documentation in proper form
to affect a transfer of shares, Unified will register such transfer on the
Trust's shareholder records maintained by Unified pursuant to instructions
received from the transferor.
G. Shareholder Communications and Meetings. Address and mail all
communications by the Trust to its shareholders promptly following the
delivery by the Trust of the material to be mailed. Prepare shareholder
lists, mail and certify as to the mailing of proxy materials, receive the
tabulated proxy cards, render periodic reports to the Trust on the progress
of such tabulation, and provide the Trust with inspectors of election at
any meeting of shareholders
H. Returned checks. In the event that any check or other order for the
payment of money is returned unpaid for any reason, Unified will take
such steps, including redepositing the check for collection or returning
the check to the investor, as Unified may, at its discretion, deem
appropriate and notify the Trust of such action, or as the Trust may
instruct.
I. Shareholder Correspondence. Acknowledge all correspondence from
shareholders relating to their share accounts and undertake such other
shareholder correspondence as may from time to time be mutually agreed upon
by Unified and the Trust.
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EXHIBIT C
to
MUTUAL FUND SERVICES AGREEMENT
TRANSFER AGENCY FEE SCHEDULE
The prices contained herein are effective for twelve months from the
execution date of the Transfer Agency contract.
I Conversion Fee: Manual conversion/new fund establishment - fee not to
exceed $500 per portfolio. Electronic conversions -
$1.50 per shareholder account with a $4,000 minimum fee.
II Standard Base Fee for Standard Base Services
The Base Fee(1) is $18.00 for money market funds and $16.00 for equity/bond
funds per active Shareholder Account per year with a minimum fee(2) per
portfolio and/or share classes per year. An Active Shareholder Account is
any Shareholder Account existing on Transfer Agent's computerized files
with a non-zero Share balance. There is a $.50 per account charge for any
account with a zero share balance for the current month, as determined on
the last day of each month. The base fee will be billed on a monthly basis.
(1) The Base Fee does not include: forms design and printing, statement
production, envelope design and printing, postage and handling,
shipping, statement microfiche copies and 800 number access to Unified's
shareholder services group.
(2) Minimum fee based on the number of Active Shareholder Accounts:
1-5 accounts $500.00 per month
6-10 accounts $750.00 per month
11 accounts or greater $1,250.00 per month
Unified will provide lost account search services in connection of SEC
Rules 17Ad-17 and 17a-24 at a cost of $2.50 per account searched. These
"Electronic Data Search Services" will be performed on a semi-annual basis.
This service will apply to only Active Shareholder Accounts maintained on
the transfer agency system coded as RPO accounts.
In addition to the above fees, there will be a $200.00 per day minimum
fee/rerun charge when the nightly processing has to be repeated due to
incorrect NAV or dividend information received from the Portfolio Pricing
Agent due to incorrect or untimely information provided by an Advisor or
its Agent
III Standard Services Provided
-Open new accounts
-Maintain Shareholder accounts
Including:
-Maintain certificate records
-Change addresses
-Prepare daily reports on number of Shares, accounts
-Prepare Shareholder federal tax information
-Withhold taxes on U.S. resident and non-resident alien accounts
-Reply to Shareholder calls and correspondence other than that for
Trust information and related inquiries
-Process purchase of Shares
-Issue/Cancel certificates (Excessive use may be subject to additional
charges)
-Process partial and complete redemptions
-Process regular and legal transfer of accounts
-Mail semi-annual and annual reports
-Process dividends and distributions
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-Prepare Shareholder meeting lists
-Process one proxy per year per fund. Tabulation is limited to three.
-Receive and tabulate proxies
-Confirm all transactions as provided by the terms of each
Shareholder's account
-Provide a system which will enable Trust to monitor the total number of
Shares sold in each state. System has capability to halt sales and warn
of potential oversell. (Blue Sky Reports)
-Determine/Identify lost Shareholder accounts
IV Standard Reports Available
-12b-1 Disbursement Report -Holdings by Account Type
-12b-1 Disbursement Summary -Posting Details
-Dealer Commission Report -Posting Summary
-Dealer Commission Summary Report -Settlement Summary
-Exchange Activity Report -Tax Register
-Fees Paid Summary Report -Transactions Journal
-Trust Accrual Details
V NSCC Interfaces
-Trust/Serv and/or Networking set-up $1,000
-Trust/Serv processing $250 per month
-Networking processing $250 per month
-Trust/Serv transactions $0.35 per trade
-Direct Networking expenses
Per item $0.025 Monthly dividend fund
Per item $0.015 Non-monthly dividend fund
VI Additional Fees for Services Outside the Standard Base
-Interactive Voice Response System Set-up Pass through
-Archiving of old records/storage of aged records Pass through
-Off-line Shareholder research $25/hour (Billed to customer account)
-Check copies $3/each (Billed to customer account)
-Statement copies $5/each (Billed to customer account)
-Mutual Trust fulfillment/prospect file maintenance $1.00/item
-Shareholder communications charges (Faxes) Pass through
-Leased line/equipment on TA's computer system Pass through
-Dial-up access to TA's computer system Pass through
-Labels $.05 ea/$100 minimum
-AD-HOC REPORTWRITER Report Generation $50.00 per report
-Bank Reconciliation Service $50.00 monthly maintenance fee per bank account
$1.50 per bank item
-Systems Programming Labor Charges:
Programmers or Consultants $125.00/hour
Officers $150.00/hour
-Additional Proxy Processing:
Each processing $225.00 fixed charge per processing
Preparation and Tabulation $0.15/proxy issued
(includes 3 tabulations, sixteen propositions)
Each Extra Tabulation $25.00 fixed charge per processing
$0.02 per proxy tabulated
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