ADMINISTRATIVE SERVICES AGREEMENT
AGREEMENT made this 8th day of November, 1993, between NWNL Northstar Series
Trust (the "Trust"), on behalf of NWNL Northstar Income and Growth Fund, NWNL
Northstar Multi-Sector Bond Fund, and NWNL Northstar High Yield Bond Fund (the
"Funds"), and Northstar Administrators Corporation (the "Administrator").
WHEREAS, the Trust is a Massachusetts business trust authorized to issue
shares in series and is registered as an open-end management investment company
under the Investment Company Act of 1940, as amended (the "1940 Act") and the
Funds are the initial series of the Trust; and
WHEREAS, Northstar Investment Management Corporation (the "Adviser") serves
as investment adviser to the Funds, and the Trust wishes to retain the
Administrator to render administrative and other services to the Funds, and the
Administrator is willing to render such services to the Funds;
NOW THEREFORE, in consideration of the premises, the promises and mutual
covenants herein contained, it is agreed between the parties as follows:
1. APPOINTMENT
The Trust hereby appoints the Administrator to serve as administrator to the
Funds for the periods and on the terms set forth herein. The Administrator
accepts this appointment and agrees to furnish the services set forth herein for
the compensation provided herein.
2. SERVICES AS ADMINISTRATOR
A. GENERAL SERVICES
Subject to the supervision and direction of the Board of Trustees of the Trust,
the Administrator will (a) assist in supervising all aspects of the Funds'
operations except those performed by the Funds' Adviser under its investment
advisory agreement; (b) furnish such statistical or other factual information,
advice regarding economic factors and trends and advice and guidelines as to
transactions in specific securities (but without generally furnishing advice or
making recommendations regarding the purchase or sale of securities); (c)
maintain or supervise, as the case may be, the maintenance by the Adviser or
third parties approved by the Trust of such books and records of the Funds as
may be required by applicable federal or state law; (d) perform all corporate
secretarial functions on behalf of the Funds; (e) provide the Funds with office
facilities, assemble and provide statistical and research data, provide data
processing, clerical, internal legal, internal executive, administrative and
bookkeeping services, and provide stationary and office supplies; (f) supervise
the performance by third parties of Fund accounting and portfolio pricing
services, internal audits and audits by independent accountants for the Funds;
(g) prepare and arrange for the printing, filing and distribution of
prospectuses, proxy materials, and periodic reports to the shareholders of the
Funds as required by applicable law; (h) prepare or supervise the preparation by
third parties approved by the Trust of all federal, state, and local tax returns
and reports of the Funds required by applicable law; (i) prepare, update, and
arrange for the filing of the Funds' registration statement and amendments
thereto and other documents as the Securities and Exchange Commission
("Commission") and other federal regulatory authorities may require by
applicable law, and oversee compliance under all state regulatory requirements
to which the Funds are subject; (j) render to the Board of Trustees of the Trust
such periodic and special reports respecting the Funds as the Board may
reasonably request; (k) arrange, assemble information and reports for, and
attend meetings of the Trustees and the shareholders of the Funds; (l) maintain
a fidelity bond as required under the 1940 Act for the Trust and liability
insurance for the Trustees and officers of the Trust; and (m) make available its
officers and employees to the Board of Trustees and officers of the Trust for
consultation and discussions regarding the administration of the Funds.
B. SHAREHOLDER SERVICING
Subject to the supervision and direction of the Board of Trustees, the
Administrator will (a) provide customer service to all shareholder accounts,
including responding to all telephone inquiries and written correspondence; and
(b) maintain records of all broker-dealers holding shareholder accounts in the
Funds; and (c) assist broker-dealers in servicing shareholder accounts,
including processing broker wire orders for purchases of shares of the Funds.
C. PERFORMANCE OF DUTIES
The Administrator, at its discretion, may enter into contracts with third
parties for the performance of the services to be provided by the Administrator
under this Agreement.
The Administrator, in the performance of its duties and obligations under this
Agreement, shall act in conformity with the Registration Statement, as amended,
of the Funds and with the instructions and directions of the Board of Trustees
of the Trust and will conform to, and comply with, the requirements of the 1940
Act and all other applicable federal and state laws and regulations. In
performing its shareholder servicing duties listed in subparagraph B herein, the
Administrator shall not engage in any activities that would require it to
register as a transfer agent under the Securities Exchange Act of 1934.
3. DOCUMENTS
The Trust has delivered to the Administrator copies of each of the following
documents and will deliver to it all future amendments and supplements, if any:
(a) Declaration of Trust, as amended, as filed with the Secretary of
the Commonwealth of Massachusetts;
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(b) By-Laws of the Trust;
(c) Certified resolutions of the Trustees authorizing the appointment
of the Administrator and approving this Agreement on behalf of the Trust and
each Fund;
(d) Registration Statement on Form N-1A under the 1940 Act and the
Securities Act of 1933, as amended from time to time (the "Registration
Statement"), as filed with the Commission, relating to the Trust and shares of
beneficial interest of each Fund and all amendments thereto;
(e) Notification of Registration of the Trust under the 1940 Act on
Form N-8A as filed with the Commission and all amendments thereto;
(f) Prospectus and Statement of Additional Information included in
the Registration Statement, as amended from time to time. All references to
this Agreement, the Prospectus and the Statement of Additional Information shall
be to such documents as most recently amended or supplemented and in effect.
4. DIRECTORS, OFFICERS AND EMPLOYEES
The Administrator shall authorize and permit any of its directors, officers and
employees who may be elected as trustees or officers of the Trust and/or the
Funds to serve in the capacities in which they are elected. All services to be
furnished by the Administrator under this Agreement may be furnished through
such directors, officers or employees of the Administrator.
5. RECORDS
The Administrator agrees that all records which it maintains for the Trust
and/or the Funds are property of the Trust and/or the Funds. The Administrator
will surrender promptly to the Trust and/or the Funds any such records upon
either the Trust's or the Fund's request. The Administrator further agrees to
preserve such records for the periods prescribed in Rule 31a-2 of the
Commission under the 1940 Act.
6. COMPENSATION
In consideration of the services rendered pursuant to Section 2.A. of this
Agreement, the Funds will pay the Administrator a fee, computed and accrued
daily and payable monthly, at an annual rate of 0.10% of each Fund's average
daily net assets. For the purpose of determining fees payable to the
Administrator, the value of a Fund's average daily net assets shall be computed
at the times and in the manner specified in the Prospectus and Statement of
Additional Information of the Fund as from time to time in effect.
In consideration of the services rendered pursuant to Section 2.B. of this
Agreement, the Administrator shall receive a fee of $5.00 per year per account
of each beneficial holder of shares in a Fund, which shall be payable no later
than January 31 of the following year.
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7. EXPENSES
The Administrator will bear all expenses in connection with the performance of
its services under this Agreement, except that the Administrator will be
reimbursed by the Funds for the out-of-pocket costs incurred in connection with
this Agreement or by third parties who are performing services as permitted by
paragraph 2. The Funds will bear certain other expenses to be incurred in their
operation, including: taxes, interest, brokerage fees and commissions, if any;
fees of Trustees of the Trust who are not officers, directors, or employees of
the Adviser or Administrator; Securities and Exchange Commission fees and state
blue sky qualification fees; charges of custodians and transfer and dividend
disbursing agents; certain insurance premiums; outside auditing and legal
expenses; cost of maintenance of the Funds' existence; costs attributable to
investor services, including without limitation, telephone and personnel
expenses; charges of accounting, internal auditing, and pricing of portfolio
securities for the Funds, including the charges of an independent pricing
service; costs of preparing and printing prospectuses and statements of
additional information for regulatory purposes and for distribution to existing
shareholders; costs of shareholders' reports and meetings of the shareholders of
the Funds and of the officers or Board of Trustees of the Trust; and any
extraordinary expenses.
8. REIMBURSEMENT TO THE FUNDS
If in any fiscal year, the aggregate expense of the Funds (including fees
pursuant to this Agreement and the Funds' investment advisory agreement, but
excluding interest, taxes, brokerage and extraordinary expenses) exceed the
expense limitations of any state having jurisdiction over the Funds, the
Administrator will reduce its fees or reimburse the Funds for such excess
expense in the same proportion as its administration fee bears to the Funds'
combined fee for investment advice and administration. The expense
reimbursement obligation of the Administrator will be limited to the amount of
its fees received pursuant to this Agreement. Such fee reduction or
reimbursement, if any, will be estimated, reconciled and paid on a monthly
basis.
9. STANDARD OF CARE
The Administrator shall exercise its best judgment in rendering the services
under this Agreement. The Administrator shall not be liable for any error of
judgment or mistake of law or for any loss suffered by the Funds or the Funds'
shareholders in connection with the matters to which this Agreement relates,
provided that nothing herein shall be deemed to protect or purport to protect
the Administrator against liability to the Funds or to their shareholders to
which the Administrator would otherwise be subject by reason of willful
misfeasance, bad faith or gross negligence on its part in the performance of its
duties or by reason of its Administrator's reckless disregard of its obligations
and duties under this Agreement. As used in this Section 9, the term
"Administrator" shall include any officers, directors, employees, or other
affiliates of the Administrator performing services with respect to the Funds.
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10. DURATION AND TERMINATION
This Agreement shall continue in effect unless sooner terminated as provided
herein, for two years from the date hereof and shall continue from year to year
thereafter, provided each continuance is specifically approved at least annually
by a majority of the Board of Trustees of the Trust, including a majority of the
Board of Trustees who are not "interested persons" (as defined in the 0000 Xxx)
of any party to this Agreement, by vote cast in person at a meeting called for
the purpose of voting such approval. This Agreement is terminable, without
penalty, on 60 days' written notice by the Board of Trustees of the Trust or by
vote of holders of a majority of the Funds' shares, or upon 90 days' written
notice by the Administrator.
11. SERVICE TO OTHER COMPANIES OR ACCOUNTS
The administrative services of the Administrator to the Funds under this
Agreement are not to be deemed exclusive, and the Administrator, or any
affiliate thereof, shall be free to render similar services to other investment
companies and other clients (whether or not their investment objectives and
policies are similar to those of the Funds) and to engage in other activities,
so long as it services hereunder are not impaired thereby.
12. ASSIGNMENT
This Agreement may be assigned by either party only upon the prior written
consent of the other party.
13. MISCELLANEOUS
(a) This Agreement constitutes the full and complete agreement of the
parties hereto with respect to the subject matter hereof.
(b) Titles or captions of Sections contained in this Agreement are
inserted only as a matter of convenience and for reference, and in no way
define, limit, extend or describe the scope of this Agreement or the intent of
any provisions thereof.
(c) This Agreement may be executed in several counterparts, all of which
together shall for all purposes constitute one Agreement, binding on all the
parties.
(d) This Agreement and the rights and obligations of the parties hereunder
shall be governed by, and interpreted, construed and enforced in accordance with
the laws of the State of Connecticut.
(e) If any provisions of this Agreement or the application thereof to any
party or circumstances shall be determined by any court of competent
jurisdiction to be invalid or unenforceable to any extent, the remainder of this
Agreement or the application of such provision to such person or circumstance,
other than those as to which it is so determined to be invalid or
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unenforceable, shall not be affected thereby, and each provision hereof shall be
valid and shall be enforced to the fullest extent permitted by law.
(f) Notices of any kind to be given to the Administrator by the Trust
shall be in writing and shall be duly given if mailed or delivered to the
Administrator at Two Pickwick Plaza, Greenwich, Connecticut 06830, or at such
other address or to such individual as shall be specified by the Administrator
to the Trust. Notices of any kind to be given to the Trust by the Administrator
shall be in writing and shall be duly given if mailed or delivered to Two
Xxxxxxxx Xxxxx, Xxxxxxxxx, Xxxxxxxxxxx 00000, or at such other address or to
such individual as shall be specified by the Trust to the Administrator.
(g) The Administrator, the Trust and the Funds each agree that the name
"Northstar" is proprietary to, and a property right of, the Administrator. The
Trust and the Funds agree and consent that (i) each will only use the name
"Northstar" as part of its name and for no other purpose, (ii) each will not
purport to grant any third party the right to use the name "Northstar" and (iii)
upon the termination of this Agreement, the Trust and the Funds shall, upon the
request of the Administrator, cease to use the name "Northstar," and shall use
its best efforts to cause its officers, trustees and shareholders to take any
and all actions which the Administrator may request to effect the foregoing.
(h) The Declaration of Trust, establishing the Trust, dated August 18,
1993, a copy of which, together with all amendments thereto (the "Declaration"),
is on file in the office of the Secretary of the Commonwealth of Massachusetts,
provides that the name "NWNL Northstar Series Trust" refers to the Trustees
under the Declaration collectively as trustees, but not individually or
personally; and no Trustee, shareholder, officer, employee or agent of the Trust
and/or the Funds may be held to any personal liability, nor may resort be had to
their private property for the satisfaction of any obligation or claim or
otherwise in connection with the affairs of the Trust, but the Trust property
only shall be liable.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed by their officers designated below on the day and year first above
written.
NWNL NORTHSTAR SERIES TRUST NORTHSTAR ADMINISTRATORS
CORPORATION
By: _______________________________ By:________________________________
President Executive Vice President
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