Exhibit (h)(ii)
TRANSFER AGENCY AGREEMENT
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THIS TRANSFER AGENCY AGREEMENT is made as of this 29th day of June, 2002,
by and between Monterey Mutual Fund, a Massachusetts business trust (the
"Trust"), and UMB Fund Services, Inc., a Wisconsin corporation, its successors
and assigns ("UMBFS").
R E C I T A L S:
WHEREAS, the Trust is registered under the 1940 Act as an open-end
management investment company; and
WHEREAS, the Trust desires to retain UMBFS to render certain transfer
agency and dividend disbursement services, and UMBFS is willing to render such
services, all in accordance with the terms of this Agreement.
A G R E E M E N T S:
NOW, THEREFORE, in consideration of the mutual promises and agreements
contained herein and other good and valuable consideration, the receipt of which
is hereby acknowledged, the parties hereto, intending to be legally bound, do
hereby agree as follows:
ARTICLE I
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DEFINITIONS
In addition to any terms defined in the body of this Agreement, the
following capitalized terms shall have the meanings set forth hereinafter
whenever they appear in this Agreement:
1.01 1940 Act shall mean the Investment Company Act of 1940, as amended
from time to time.
1.02 Authorized Person shall mean any individual who is authorized to
provide UMBFS with Instructions and requests on behalf of the Trust, whose name
shall be certified to UMBFS from time to time pursuant to Section 7.01 of this
Agreement.
1.03 Board of Trustees shall mean the Board of Trustees of the Trust.
1.04 Custodian shall mean the financial institution appointed as custodian
under the terms and conditions of the custody agreement between the financial
institution and the Trust, or its successor.
1.05 Declaration of Trust shall mean the Declaration of Trust or other
similar operational document of the Trust, as the case may be, as the same may
be amended from time to time.
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1.06 Exchange Act shall mean the Securities Exchange Act of 1934, as
amended from time to time.
1.07 Fund shall mean each separate series of Shares offered by the Trust
representing interests in a separate portfolio of securities and other assets
for which the Trust has appointed UMBFS as transfer agent and dividend
disbursing agent under this Agreement.
1.08 Fund Business Day shall mean each day on which the New York Stock
Exchange, Inc. is open for trading.
1.09 Instructions shall mean an oral communication from an Authorized
Person or a written communication signed by an Authorized Person and actually
received by UMBFS. Instructions shall include manually executed originals,
telefacsimile transmissions of manually executed originals or electronic
communications.
1.10 Prospectus shall mean the current Prospectus and Statement of
Additional Information with respect to a Fund (including any applicable
supplement) actually received by UMBFS from the Trust with respect to which the
Trust has indicated a registration statement has become effective under the
Securities Act and the 1940 Act.
1.11 Securities Act shall mean the Securities Act of 1933, as amended from
time to time.
1.12 Shares shall mean such shares of beneficial interest, or class
thereof, of each respective Fund of the Trust as may be issued from time to
time.
1.13 Shareholder shall mean a record owner of Shares of each respective
Fund of the Trust.
ARTICLE II
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APPOINTMENT OF TRANSFER AGENT
2.01 Appointment. The Trust hereby appoints UMBFS as transfer agent and
dividend disbursing agent of all the Shares of the Trust during the term of this
Agreement with respect to each Fund listed on Schedule A hereto, and any
additional Fund the Trust and UMBFS may agree to include on any amended Schedule
A. UMBFS hereby accepts such appointment as transfer agent and dividend
disbursing agent and agrees to perform the duties thereof as hereinafter set
forth.
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2.02 Duties.
A. UMBFS shall perform the transfer agent and dividend disbursement
services described on Schedule B hereto and such additional services as may be
agreed to by the parties from time to time and set forth in an amendment to
Schedule B (collectively, the "Services"). UMBFS shall have no duties or
responsibilities other than those specifically set forth in this Agreement, and
no covenant or obligation to carry out any other duties or responsibilities
shall be implied in this Agreement against UMBFS.
B. UMBFS may, in its discretion, appoint other parties to carry out
some or all of its responsibilities under this Agreement; provided, however,
that unless the Trust shall enter into a written agreement with any such party,
the party shall be the agent of UMBFS and not the agent of the Trust. In such
event, UMBFS shall be fully responsible for the acts or omissions of such party
and shall not be relieved of any of its responsibilities hereunder by the
appointment of such party.
2.03 Deliveries.
A. In connection with UMBFS's appointment as transfer agent and
dividend disbursing agent, the Trust shall deliver or cause the following
documents to be delivered to UMBFS:
(1) A copy of the Declaration of Trust and By-laws of the Trust and
all amendments thereto, certified by the Secretary of the Trust;
(2) A certificate signed by the President and Secretary of the Trust
specifying the number of authorized Shares and the number of such authorized
Shares issued and currently outstanding, if any;
(3) A certified copy of the resolutions of the Board of Trustees of
the Trust appointing UMBFS as transfer agent and dividend disbursing agent and
authorizing the execution of this Transfer Agency Agreement on behalf of the
Trust;
(4) Copies of the Trust's Registration Statement, as amended to date,
and the most recently filed Post-Effective Amendment thereto, filed by the Trust
with the Securities and Exchange Commission under the Securities Act and the
1940 Act, together with any applications filed in connection therewith; and
(5) The certificate required by Section 7.01 of this Agreement, signed
by an officer of the Trust and designating the names of the Trust's initial
Authorized Persons.
B. The Trust agrees to deliver or to cause to be delivered to UMBFS in
Milwaukee, Wisconsin, at the Trust's expense, all of its Shareholder account
records in a format acceptable to UMBFS, as well as all other documents, records
and information that UMBFS may reasonably request in order for UMBFS to perform
the Services hereunder.
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ARTICLE III
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COMPENSATION & EXPENSES
3.01 Compensation. As compensation for the performance of the Services, the
Trust agrees to pay UMBFS the fees set forth on Schedule C attached hereto. The
parties may amend Schedule C to include fees for any additional services
requested by the Trust, enhancements to current Services, or to add Funds for
which UMBFS has been retained. The Trust agrees to pay UMBFS's then current rate
for any Services added to, or any enhancements to existing Services set forth
on, Schedule C after the execution of this Agreement.
3.02 Expenses. The Trust also agrees to promptly reimburse UMBFS for all
out-of-pocket expenses or disbursements incurred by UMBFS in connection with the
performance of Services under this Agreement. Out-of-pocket expense shall
include, but not be limited to, those items specified on Schedule C hereto. If
requested by UMBFS, out-of-pocket expenses are payable in advance. Payment of
postage expenses, if prepayment is requested, is due at least seven days prior
to the anticipated mail date. In the event UMBFS requests advance payment, UMBFS
shall not be obligated to incur such expenses or perform the related Service(s)
until payment is received.
3.03 Payment Procedures.
A. The Trust agrees to pay all amounts due hereunder within thirty
(30) days of the date reflected on the statement for such Services (the "Due
Date"). Except as provided in Schedule C, UMBFS shall xxxx Service fees monthly,
and out-of-pocket expenses as incurred (unless prepayment is requested by
UMBFS). UMBFS may, at its option, arrange to have various service providers
submit invoices directly to the Trust for payment of reimbursable out-of-pocket
expenses.
B. The Trust is aware that its failure to remit to UMBFS all amounts
due on or before the Due Date will cause UMBFS to incur costs not contemplated
by this Agreement, including, but not limited to carrying, processing and
accounting charges. Accordingly, in the event that UMBFS does not receive any
amounts due hereunder within ten (10) days after a notice of past due amount is
sent by UMBFS, the Trust agrees to pay a late charge on the overdue amount equal
to one and one-half percent (1.5%) per month or the maximum amount permitted by
law, whichever is less. In addition, the Trust shall pay UMBFS's reasonable
attorney's fees and court costs if any amounts due UMBFS are collected by or
through an attorney. The parties hereby agree that such late charge represents a
fair and reasonable computation of the costs incurred by reason of the Trust's
late payment. Acceptance of such late charge shall in no event constitute a
waiver by UMBFS of the Trust's default or prevent UMBFS from exercising any
other rights and remedies available to it.
C. In the event that any charges are disputed, the Trust shall, on or
before the Due Date, pay all undisputed amounts due hereunder and notify UMBFS
in writing of any disputed charges for out-of-pocket expenses which it is
disputing in good faith. Payment for such disputed charges shall be due on or
before the close of the fifth (5th) business day after the day on which UMBFS
provides to the Fund documentation which an objective observer would agree
reasonably supports the disputed charges (the
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"Revised Due Date"). Late charges shall not begin to accrue as to charges
disputed in good faith until the first day after the Revised Due Date.
3.04 Allocation of Risk. The Trust acknowledges that the fees charged by
UMBFS under this Agreement reflect the allocation of risk between the parties,
including the exclusion of remedies and limitations on liability in Article
VIII. Modifying the allocation of risk from what is stated herein would affect
the fees that UMBFS charges. Accordingly, in consideration of those fees, the
Trust agrees to the stated allocation of risk.
ARTICLE IV
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PROCESSING AND PROCEDURES
4.01 Issuance, Redemption and Transfer of Shares
A. UMBFS agrees to accept purchase orders and redemption requests with
respect to the Shares of each Fund via postal mail, telephone or personal
delivery on each Fund Business Day in accordance with such Fund's Prospectus;
provided, however, that UMBFS shall only accept purchase orders from states in
which the Shares are qualified for sale, as indicated from time to time by the
Trust. UMBFS shall, as of the time at which the net asset value of each Fund is
computed on each Fund Business Day, issue to and redeem from the accounts
specified in a purchase order or redemption request in proper form and accepted
by the Fund the appropriate number of full and fractional Shares based on the
net asset value per Share of the respective Fund specified in an advice received
on such Fund Business Day from or on behalf of the Fund. UMBFS shall not be
responsible for the payment of any original issue or other taxes required to be
paid by the Trust in connection with the issuance of any Shares in accordance
with this Agreement. UMBFS shall not be required to issue any Shares after it
has received from an Authorized Person or from an appropriate federal or state
authority written notification that the sale of Shares has been suspended or
discontinued, and UMBFS shall be entitled to rely upon such written
notification. Payment for Shares shall be in the form of a check, wire transfer,
Automated Clearing House transfer or such other methods to which the parties
shall mutually agree.
B. Upon receipt of a redemption request and monies paid to it by the
Custodian in connection with a redemption of Shares, UMBFS shall cancel the
redeemed Shares and after making appropriate deduction for any withholding of
taxes required of it by applicable federal law, make payment in accordance with
the Fund's redemption and payment procedures described in the Prospectus.
C. Except as otherwise provided in this paragraph, UMBFS will transfer
or redeem Shares upon presentation to UMBFS of instructions endorsed for
exchange, transfer or redemption, accompanied by such documents as UMBFS deems
necessary to evidence the authority of the person making such transfer or
redemption. UMBFS reserves the right to refuse to transfer or redeem Shares
until it is satisfied that the endorsement or instructions are valid and
genuine. For that purpose, it will require, unless otherwise instructed by an
Authorized Person or except as otherwise provided in this paragraph, a guarantee
of signature by an "Eligible Guarantor Institution" as that term is defined by
SEC Rule 17Ad-15. UMBFS also reserves the right to refuse to transfer or redeem
Shares until it is satisfied that the requested transfer or redemption is
legally authorized, and it shall incur no liability for the refusal, in good
faith, to make transfers or redemptions which UMBFS, in its judgment, deems
improper
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or unauthorized, or until it is satisfied that there is no reasonable basis to
any claims adverse to such transfer or redemption. UMBFS may, in effecting
transfers and redemptions of Shares, rely upon those provisions of the Uniform
Act for the Simplification of Fiduciary Security Transfers (or such other
statutes which protect it and the Trust in not requiring complete fiduciary
documentation) and shall not be responsible for any act done or omitted by it in
good faith in reliance upon such laws. Notwithstanding the foregoing or any
other provision contained in this Agreement to the contrary, UMBFS shall be
fully protected by each Fund in not requiring any instruments, documents,
assurances, endorsements or guarantees, including, without limitation, any
signature guarantees, in connection with a redemption, exchange or transfer of
Shares whenever UMBFS reasonably believes that requiring the same would be
inconsistent with the transfer and redemption procedures described in the
Prospectus.
D. Notwithstanding any provision contained in this Agreement to the
contrary, UMBFS shall not be required or expected to require, as a condition to
any transfer or redemption of any Shares pursuant to a computer tape or
electronic data transmission, any documents to evidence the authority of the
person requesting the transfer or redemption and/or the payment of any stock
transfer taxes, and shall be fully protected in acting in accordance with the
applicable provisions of this Article.
E. In connection with each purchase and each redemption of Shares,
UMBFS shall send such statements as are prescribed by the Federal securities
laws applicable to transfer agents or as described in the Prospectus. It is
understood that certificates for Shares have not been and will not be offered by
the Trust or available to investors.
F. UMBFS and the Trust shall establish procedures for effecting
purchase, redemption or transfer transactions accepted from investors by
telephone or other methods consistent with the terms of the Prospectus. UMBFS
may establish such additional procedures, rules and regulations governing the
purchase, redemption or transfer of Shares, as it may deem advisable and
consistent with the Prospectus and industry practice. UMBFS shall not be liable,
and shall be held harmless by the Trust, for its actions or omissions which are
consistent with the foregoing procedures.
G. The Trust agrees to provide UMBFS with prior notice of any increase
or decrease in the total number of Shares authorized to be issued, or the
issuance of any additional Shares of a Fund pursuant to stock dividends, stock
splits, recapitalizations, capital adjustments or similar transactions, and to
deliver to UMBFS such documents, certificates, reports and legal opinions as
UMBFS may reasonably request.
4.02 Dividends and Distributions.
A. The Trust shall give or cause to be given to UMBFS a copy of a
resolution of its Board of Trustees, that either:
(i) sets forth the date of the declaration of a dividend or
distribution, the date of accrual or payment, as the case may be, thereof, the
record date as of which Shareholders entitled to payment or accrual, as the case
may be, shall be determined, the amount per Share of such dividend or
distribution, the payment date on which all previously accrued and unpaid
dividends are to be paid, and the total amount, if any, payable to UMBFS on such
payment date, or
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(ii) authorizes the declaration of dividends and distributions on a
daily or other periodic basis and further authorizes UMBFS to rely on a
certificate of an Authorized Person setting forth the information described in
subsection (i) of this paragraph.
B. In connection with a reinvestment of a dividend or distribution of
Shares of a Fund, UMBFS shall as of each Fund Business Day, as specified in a
certificate or resolution described in paragraph A, issue Shares of the Fund
based on the net asset value per Share of such Fund specified in an advice
received from or on behalf of the Fund on such Fund Business Day.
C. Upon the mail date specified in such certificate or resolution, as
the case may be, the Trust shall, in the case of a cash dividend or
distribution, cause the Custodian to deposit in an account in the name of UMBFS
on behalf of a Fund, an amount of cash sufficient for UMBFS to make the payment,
as of the mail date specified in such certificate or resolution, as the case may
be, to the Shareholders who were of record on the record date. UMBFS will, upon
receipt of any such cash, make payment of such cash dividends or distributions
to the Shareholders as of the record date. UMBFS shall not be liable for any
improper payments made in accordance with a certificate or resolution described
in the preceding paragraph. If UMBFS shall not receive from the Custodian
sufficient cash to make payments of any cash dividend or distribution to all
Shareholders of a Fund as of the record date, UMBFS shall, upon notifying the
Trust, withhold payment to such Shareholders until sufficient cash is provided
to UMBFS.
D. It is understood that UMBFS in its capacity as transfer agent and
dividend disbursing agent shall in no way be responsible for the determination
of the rate or form of dividends or capital gain distributions due to the
Shareholders pursuant to the terms of this Agreement. It is further understood
that UMBFS shall file with the Internal Revenue Service and Shareholders such
appropriate federal tax forms concerning the payment of dividend and capital
gain distributions but shall in no way be responsible for the collection or
withholding of taxes due on such dividends or distributions due to shareholders,
except and only to the extent, required by applicable federal law.
4.03 Records.
A. UMBFS shall keep those records specified in Schedule D hereto in
the form and manner, and for such period, as it may deem advisable but not
inconsistent with the rules and regulations of appropriate government
authorities, in particular Rules 31a-2 and 31a-3 under the 1940 Act. UMBFS may
deliver to the Trust from time to time at UMBFS's discretion, for safekeeping or
disposition by the Trust in accordance with law, such records, papers and
documents accumulated in the execution of its duties as transfer agent, as UMBFS
may deem expedient, other than those which UMBFS is itself required to maintain
pursuant to applicable laws and regulations. The Trust shall assume all
responsibility for any failure thereafter to produce any record, paper, or other
document so returned, if and when required. To the extent required by Section 31
of the 1940 Act and the rules and regulations thereunder, the records specified
in Schedule D hereto maintained by UMBFS, which have not been previously
delivered to the Trust pursuant to the foregoing provisions of this paragraph,
shall be considered to be the property of the Trust, shall be made available
upon request for inspection by the officers, employees, and auditors of the
Trust, and shall be delivered to the Trust promptly upon request and in any
event upon the date of termination of this Agreement, in the form and manner
kept by UMBFS on such date of termination or such earlier date as may be
requested by the Trust.
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Notwithstanding anything contained herein to the contrary, UMBFS shall be
permitted to maintain copies of any such records, papers and documents to the
extent necessary to comply with the recordkeeping requirements of federal and
state securities laws, tax laws and other applicable laws.
B. UMBFS agrees to keep all records and other information relative to
the Funds' Shareholders confidential, not to use such information other than for
purposes of fulfilling its duties under the Agreement and not to disclose such
information except: (i) when requested to divulge such information by
duly-constituted authorities or court process, or (ii) when requested by a
Shareholder or Shareholder's agent with respect to information concerning an
account as to which such Shareholder has either a legal or beneficial interest,
or (iii) when requested by the Trust, a Fund, the Shareholder, the Shareholder's
agent or the dealer of record with respect to such account, or (iv) to an
affiliate, as defined by Section 248.3(a) of Regulation S-P (17 CFR
248.1-248.30); or (v) pursuant to any other exception permitted by Sections
248.14 and 248.15 of Regulation S-P in the ordinary course of business to carry
out the activities covered by the exception under which UMBFS received the
information. In case of any requests or demands for the inspection of the
Shareholder records of the Funds, UMBFS will endeavor to notify the Trust
promptly and to secure instructions from an Authorized Person as to such
inspection. UMBFS reserves the right, however, to exhibit the Shareholder
records to any person whenever it believes there is a reasonable likelihood that
UMBFS will be held liable for the failure to exhibit the Shareholder records to
such person; provided, however, that in connection with any such disclosure
UMBFS shall promptly notify the Trust that such disclosure has been made or is
to be made. Records and information which have become known to the public
through no wrongful act of UMBFS or any of its employees, agents or
representatives, and information which was already in the possession of UMBFS
prior to receipt thereof, shall not be subject to this paragraph.
ARTICLE V
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REPRESENTATION AND WARRANTIES
5.01 Representations of Trust. The Trust represents and warrants to UMBFS
that:
A. It is a business trust duly organized and existing under the laws
of the State of Massachusetts; it is empowered under applicable laws and by its
Declaration of Trust and By-laws to enter into and perform this Agreement; and
all requisite corporate proceedings have been taken to authorize it to enter
into and perform this Agreement.
B. Any officer of the Trust has the authority to appoint additional
Authorized Persons, to limit or revoke the authority of any previously
designated Authorized Person, and to certify to UMBFS the names of such
Authorized Persons.
C. It is duly registered as an investment company under the 1940 Act.
D. A registration statement under the Securities Act is currently
effective and will remain effective, and appropriate state securities laws
filings have been made and will continue to be made, with respect to Shares of
the Trust being offered for sale.
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E. All outstanding Shares are validly issued, fully paid and
non-assessable and when Shares are hereafter issued in accordance with the terms
of the Trust's Declaration of Trust and its Prospectus with respect to each
Fund, such Shares shall be validly issued, fully paid and non-assessable.
F. All shareholder tax reporting has been completed timely and
accurately, including the distribution of Forms 5498s for the 2001 tax year.
G. The Funds, and all shareholder accounts, are in balance and all
accounts reconciled and current as of the date of this Agreement, and (1) there
are no outstanding issues relating to transfer agent activities and shareholder
and Trust record keeping, including those related to shareholder accounts and
transaction activity, and (2) there are no existing or potential claims,
litigation or demands by shareholders or others relating to the Trust, or any of
the Funds or their officers or Trustees, except as disclosed in writing and
dated as of the date of this Agreement to UMBFS.
5.02 Representations of UMBFS. UMBFS represents and warrants to the Trust
that:
A. It is a corporation duly organized and existing under the laws of
the State of Wisconsin; it is empowered under applicable law and by its Articles
of Incorporation and By-laws to enter into and perform this Agreement; and all
requisite proceedings have been taken to authorize it to enter into and perform
this Agreement.
B. It is duly registered as a transfer agent under Section 17A of the
1934 Act to the extent required.
C. It has received a copy of each Fund's Prospectus which describes
how sales and redemptions of Shares shall be made.
ARTICLE VI
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ADDITIONAL COVENANTS AND AGREEMENTS
6.01 Information Updates. During the term of this Agreement the Trust shall
have the ongoing obligation to provide UMBFS with the following documents as
soon as they become effective: (i) certified copies of all amendments to its
Declaration of Trust and By-laws made after the date of this Agreement; and (ii)
a copy of each Fund's currently effective Prospectus. For purposes of this
Agreement, UMBFS shall not be deemed to have notice of any information contained
in any such Prospectus until a reasonable time after it is actually received by
UMBFS.
6.02 Share Qualification. The Trust agrees to take or cause to be taken all
requisite steps to qualify the Shares for sale in all states in which the Shares
shall at the time be offered for sale and require qualification. If the Trust
receives notice of any stop order or other proceeding in any such state
affecting such qualification or the sale of Shares, or of any stop order or
other proceeding under the federal securities laws affecting the sale of Shares,
the Trust will give prompt notice thereof to UMBFS.
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6.03 Compliance with Laws. The Trust will comply with all applicable
requirements of the Securities Act, the Exchange Act, the 1940 Act, blue sky
laws, and any other applicable laws, rules and regulations.
6.04 Additional Duties. The Trust agrees that it shall advise UMBFS at
least 30 days prior to effecting any change in the Prospectus which would
increase or alter the duties and obligations of UMBFS hereunder, and shall
proceed with such change only if it shall have received the written consent of
UMBFS thereto.
6.05 Transfer Agent System. UMBFS shall retain all right, title and
interest in and any and all computer programs, screen formats, report formats,
procedures, data bases, interactive design techniques, derivative works,
inventions, discoveries, patentable or copyrightable matters, concepts,
expertise, trade secrets, trademarks and other related legal rights provided,
developed or utilized by UMBFS in connection with the Services provided by UMBFS
to the Trust hereunder.
ARTICLE VII
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TRUST INSTRUCTIONS
7.01 Authorized Persons. Upon the execution of this Agreement, the Trust
shall provide UMBFS with a certificate containing the names of the initial
Authorized Persons in a form acceptable to UMBFS. Any officer of the Trust shall
be considered an Authorized Person (unless such authority is limited in a
writing from the Trust and received by UMBFS) and has the authority to appoint
additional Authorized Persons, to limit or revoke the authority of any
previously designated Authorized Person, and to certify to UMBFS the names of
the Authorized Persons from time to time. The Trust shall provide UMBFS with an
updated certificate evidencing the appointment, removal or change of authority
of any Authorized Person, it being understood UMBFS shall not be held to have
notice of any change in the authority of any Authorized Person until receipt of
written notice thereof from the Trust.
7.02 Acceptance of Instructions. UMBFS, its officers, agents or employees
shall accept Instructions given to them by any person representing or acting on
behalf of the Trust only if such representative is an Authorized Person. The
Trust agrees that when oral Instructions are given, it shall, upon the request
of UMBFS, confirm such Instructions in writing.
7.03 Request for Instructions. At any time, UMBFS may request Instructions
from the Trust with respect to any matter arising in connection with this
Agreement. If such Instructions are not received within a reasonable time, then
UMBFS may seek advice from legal counsel for the Trust at the expense of the
Trust, or its own legal counsel at its own expense, and it shall not be liable
for any action taken or not taken by it in good faith in accordance with such
Instructions or in accordance with advice of counsel.
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ARTICLE VIII
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LIMITATION OF LIABILITY; INDEMNIFICATION
8.01 Limitation of Liability. Notwithstanding anything contained in this
Agreement to the contrary, UMBFS shall not be liable for any error of judgment
or mistake of law or for any loss suffered by the Trust or the Funds in
connection with the matters to which this Agreement relates, except for a loss
resulting from UMBFS's willful misfeasance, bad faith or negligence in the
performance of its duties or from reckless disregard by it of its obligations
and duties under this Agreement. Furthermore, UMBFS shall not be liable for (1)
any action taken or omitted to be taken in accordance with or in reliance upon
written or oral instructions, advice, data, documents or information (without
investigation or verification) received by the Administrator from an officer or
representative of the Trust or from a representative of any of the parties
referenced in Section 10.09, or (2) any action taken or omission by a Fund, the
Trust, investment adviser(s) or any past or current service provider.
8.02 Indemnification. The Trust agrees to indemnify and hold harmless
UMBFS, its employees, agents, officers, directors, affiliates and nominees
("Indemnified Parties") from and against any and all claims, demands, actions
and suits, and from and against any and all judgments, liabilities, losses,
damages, costs, charges, counsel fees and other expenses of every nature and
character which may be asserted against or incurred by any Indemnified Party or
for which any Indemnified Party may be held liable (a "Claim") arising out of or
in any way relating to any of the following:
(a) any action or omission of UMBFS except to the extent a Claim
resulted from UMBFS's willful misfeasance, bad faith, negligence in the
performance of its duties or from reckless disregard by it of its obligations
and duties hereunder;
(b) UMBFS's reliance on, implementation of, or use, without
investigation or verification, of information, data, records and documents
received by UMBFS from the Trust, or from a representative of any of the parties
referenced in Section 10.09, or any third party acting on behalf of the Trust;
(c) the reliance on, or the implementation of, any Instructions or any
other advice, instructions, requests or directions of the Trust or from a
representative of any of the parties referenced in Section 10.09, or any third
party acting on behalf of the Trust;
(d) UMBFS's acting upon telephone or electronic instructions relating
to the purchase, exchange or redemption of Shares received by UMBFS in
accordance with procedures established by UMBFS and the Trust;
(e) any action taken by or omission of the Trust, investment adviser
or sub-adviser(s) or any past or current service provider;
(f) the acceptance, processing and/or negotiation of a fraudulent
payment for the purchase of Shares unless the result of UMBFS's or its
affiliates' willful misfeasance, bad faith or negligence in
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the performance of its duties or from reckless disregard by it of its
obligations and duties under this Agreement. In the absence of a finding to the
contrary, the acceptance, processing and/or negotiation of a fraudulent payment
for the purchase of Shares shall be presumed not to have been the result of
UMBFS's or its affiliates' willful misfeasance, bad faith or negligence.
(g) the offer or sale of Shares in violation of any requirement under
the securities laws or regulations of any state that such Shares be qualified
for sale in such state or in violation of any stop order or determination or
ruling by any state with respect to the offer or sale of such Shares in such
state; or
(h) the Trust's refusal or failure to comply with the terms of the
Agreement, or any Claim that arises out of the Trust's negligence or misconduct
or breach of any representation or warranty of the Trust made herein.
8.03 Indemnification Procedures. UMBFS will notify the Trust promptly after
identifying any situation which it believes presents or appears likely to
present a Claim for which the Trust may be required to indemnify or hold UMBFS
harmless hereunder. In such event, the Trust shall have the option to defend
UMBFS against any Claim, and, in the event that the Trust so elects, such
defense shall be conducted by counsel chosen by the Trust and approved by UMBFS
in its reasonable discretion. UMBFS shall not confess any Claim or make any
compromise in any case in which the Trust will be asked to provide
indemnification, except with the Trust's prior written consent. The obligations
of the parties under the Sections 8.02 and 8.03 shall survive the termination of
this Agreement.
8.04 Force Majeure. UMBFS assumes no responsibility hereunder, and shall
not be liable, for any damage, loss of data or documents, errors, delay or any
other loss whatsoever caused by events beyond its reasonable control. UMBFS
will, however, take all reasonable steps to minimize service interruptions for
any period that such interruption continues beyond UMBFS's control.
8.05 Consequential Damages. In no event and under no circumstances shall
UMBFS, its affiliates or any of its or their officers, directors, agents or
employees be liable to anyone, including, without limitation, the other party,
under any theory of tort, contract, strict liability or other legal or equitable
theory for lost profits, exemplary, punitive, special, indirect or consequential
damages for any act or failure to act under any provision of this Agreement
regardless of whether such damages were foreseeable and even if advised of the
possibility thereof.
8.06 Additional Limitations and Exclusions. Notwithstanding any other
provision of this Agreement, UMBFS shall have no duty or obligation under this
Agreement to inquire into, and shall not be liable for:
(a) The legality of the issue or sale of any Shares, the sufficiency
of the amount to be received therefor, or the authority of the Trust, as the
case may be, to request such sale or issuance;
(b) The legality of a transfer of Shares or of a purchase or
redemption of any Shares, the propriety of the amount to be paid therefor, or
the authority of the Trust, as the case may be, to request such transfer or
redemption;
12
(c) The legality of the declaration of any dividend by the Trust, or
the legality of the issue of any Shares in payment of any stock dividend; or
(d) The legality of any recapitalization or readjustment of Shares.
ARTICLE IX
----------
TERM AND TERMINATION
9.01 Term. This Agreement shall become effective with respect to each Fund
listed on Schedule A hereof as of the date hereof and, with respect to each Fund
not in existence on that date, on the date an amendment to Schedule A to this
Agreement relating to that Fund is executed. This Agreement shall continue in
effect with respect to each Fund until terminated as provided herein.
9.02 Termination. Either party may terminate this Agreement at any time by
giving the other party a written notice not less than ninety (90) days prior to
the date the termination is to be effective. In the event such notice is given
by the Trust pursuant to Section 9.02, it shall be accompanied by a copy of a
resolution of the Board of Trustees of the Trust certified by the Secretary or
any Assistant Secretary, electing to terminate this Agreement and designating
the successor transfer agent or transfer agents. In the event such notice is
given by UMBFS, the Trust shall on or before the termination date, deliver to
UMBFS a copy of a resolution of its Board of Trustees certified by the Secretary
or any Assistant Secretary designating a successor transfer agent or transfer
agents. In the absence of such designation by the Trust, the Trust shall be
deemed to be its own transfer agent as of the termination date and UMBFS shall
thereby be relieved of all duties and responsibilities pursuant to this
Agreement. Fees and out-of-pocket expenses incurred by UMBFS, but unpaid by the
Trust upon such termination, shall be immediately due and payable upon and
notwithstanding such termination.
9.03 Effect of Termination. Upon the termination of the Agreement as
provided herein, UMBFS, upon the written request of the Trust, shall deliver the
records of the Trust to the Trust or its successor transfer agent in the form
maintained by UMBFS (to the extent permitted by applicable license agreements)
at the expense of the Trust. The Trust shall be responsible to UMBFS for all
costs and expenses associated with the preparation and delivery of such media,
including, but not limited to: (a) out-of-pocket expenses; (b) any custom
programming requested by the Trust in connection with the preparation of such
media and agreed upon by UMBFS; (c) transportation of forms and other materials
used in connection with the processing of Trust transactions by UMBFS; and (d)
transportation of records and files in the possession of UMBFS. In addition,
UMBFS shall be entitled to such compensation as the parties may mutually agree
for any services other than the preparation and delivery of such media requested
by the Trust and agreed to by UMBFS in connection with the termination of this
Agreement or the liquidation or merger of the Trust. UMBFS shall not reduce the
level of service provided to the Trust prior to termination following notice of
termination by the Trust.
ARTICLE X
---------
MISCELLANEOUS
13
10.01 Notices. Any notice required or permitted to be given by either party
to the other under this Agreement shall be in writing and shall be deemed to
have been given when sent by either an overnight delivery service or by
registered or certified mail, postage prepaid, return receipt requested, to the
addresses listed below, or to such other location as either party may from time
to time designate in writing:
If to UMBFS: UMB Fund Services, Inc.
----------- 000 Xxxx Xxxxxxxx Xxxxxx, Xxxxx X
Xxxxxxxxx, Xxxxxxxxx 00000
Attention: Executive Vice President
If to the Trust: Monterey Mutual Fund
--------------- 0000 Xxxxx Xxxxxx, Xxxxx 000
Xxxxx Xxxxxx, Xxxxxxxxxx 00000
Attention: President
10.02 Amendments/Assignments.
----------------------
A. This Agreement may not be amended or modified in any manner except
by a written agreement executed by both parties with the formality of this
Agreement.
B. This Agreement shall extend to and shall be binding upon the
parties hereto, and their respective successors and assigns. This Agreement
shall not be assignable by either party without the written consent of the other
party, except that UMBFS may assign this Agreement to an affiliate with advance
written notice to the Trust.
10.03 Governing Law. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of Wisconsin, without regard to
its conflict of law provisions.
10.04 Severability. If any part, term or provision of this Agreement is
determined by the courts or any regulatory authority having jurisdiction over
the issue to be illegal, in conflict with any law or otherwise invalid, the
remaining portion or portions shall be considered severable and not be affected,
and the rights and obligations of the parties shall be construed and enforced as
if the Agreement did not contain the particular part, term or provision held to
be illegal or invalid.
10.05 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original; but such
counterparts shall, together, constitute only one instrument.
10.06 Non-Exclusivity; Other Agreements. The services of UMBFS hereunder
are not deemed exclusive and UMBFS shall be free to render similar and other
services to others. Except as specifically provided herein, this Agreement does
not in any way affect any other agreements entered into among the parties hereto
and any actions taken or omitted by any party hereunder shall not affect any
rights or obligations of any other party hereunder.
14
10.07 Captions. The captions in the Agreement are included for convenience
of reference only, and in no way define or limit any of the provisions hereof or
otherwise affect their construction or effect.
10.08 Trust Limitations. This Agreement is executed by the Trust with
respect to each of the Funds and the obligations hereunder are not binding upon
any of the trustees, officers or shareholders of the Trust individually but are
binding only upon the Fund to which such obligations pertain and the assets and
property of such Fund. All obligations of the Trust under this Agreement shall
apply only on a Fund-by-Fund basis, and the assets of one Fund shall not be
liable for the obligations of another Fund. The Fund's Declaration of Trust is
on file with the State of Massachesetts.
10.09 Reliance on Information and Instructions. The Trustees of the Trust
shall cause the officers, trustees, investment adviser(s) and sub-advisers,
legal counsel, independent accountants, custodian and other service providers
and agents, past or present, for the Funds to cooperate with UMBFS and to
provide UMBFS with such information, documents and advice as necessary and/or
appropriate or as requested by UMBFS, in order to enable UMBFS to perform its
duties hereunder. In connection with its duties hereunder, UMBFS shall (without
investigation or verification) be entitled, and is hereby instructed to, rely
upon any and all instructions, advice, information or documents provided to
UMBFS by an officer or representative of the Funds or by any of the
aforementioned persons. UMBFS shall be entitled to rely on any document that it
reasonably believes to be genuine and to have been signed or presented by the
proper party. Fees charged by such persons shall be an expense of the Trust.
UMBFS shall not be held to have notice of any change of authority of any
officer, agent, representative or employee of the Trust, investment adviser(s)
or service provider until receipt of written notice thereof from the Trust. As
used in this Agreement, the term "investment adviser" includes all sub-advisers
or persons performing similar services.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the day and year first above written.
UMB FUND SERVICES, INC. MONTEREY MUTUAL FUND
By: /s/ Authorized Signatory By: /s/ Authorized Signatory
------------------------------ --------------------------------
(Signature) (Signature)
______________________________ ________________________________
(Name) (Name)
______________________________ ________________________________
(Title) (Title)
______________________________ ________________________________
(Date Signed) (Date Signed)
15
Schedule A
----------
to the
Transfer Agency Agreement
by and between
Monterey Mutual Fund
and
UMB Fund Services, Inc.
Name of Funds
-------------
PIA Short-Term Government Securities Fund
PIA Total Return Bond Fund
PIA Equity Fund
Xxxxxx New World Technology Fund
Xxxxxx New World Biotechnology Fund
Xxxxxx New WorldTechnology Convertibles Fund
OCM Gold Fund
16
Schedule B
----------
to the
Transfer Agency Agreement
by and between
Monterey Mutual Fund
and
UMB Fund Services, Inc.
SERVICE SCHEDULE
o Set up and maintain shareholder accounts and records, including IRAs and
other retirement accounts
o Store account documents electronically
o Receive and respond to investor account inquiries by telephone or mail, or
by e-mail if the response does not require the reference to specific
shareholder account information
o Process purchase and redemption orders, transfers, and exchanges, including
automatic purchases and redemptions via postal mail, telephone and personal
delivery, provided payment for shares is in the form of a check, wire
transfer or requested Automated Clearing House transfer, or such other
means as the parties shall mutually agree
o Process dividend payments by check, wire or ACH, or reinvest dividends
o Issue daily transaction confirmations and monthly or quarterly statements
o Mail prospectus, annual and semiannual reports, and other shareholder
communications to existing shareholders
o File IRS Forms 1099, 5498, 1042, 1042-S and 945 with shareholders and/or
the IRS
o Handle load and multi-class processing, including rights of accumulation
and purchases by letters of intent
o Calculate 12b-1 plan fees
o Provide standards to structure forms and applications for efficient
processing
o UMBISG 4.prompt services (per fund group)
o Tier I and II - Basic Service
The foregoing services do not include correcting, verifying or addressing any
prior actions or inactions by any Fund or by any prior service provider. To the
extent UMBFS agrees to take such actions, those actions taken shall be deemed
part of this service schedule.
17
Optional Services
-----------------
The Funds may contract with UMBFS to provide one or more of the following
optional services. Additional fees apply.
o Personal follow-up calls to prospects who return incomplete applications
o Comprehensive clerical confirmation statements for maintenance transactions
o UMBISG 0.xxx(R) services, UMBFS's array of Internet services, including
Adviser Services, RIA/Broker Services, Shareholder Services, NAV Services
and email services.
o Average cost calculations and cost basis statements
o Shareholder "welcome" packages with initial confirmation
o Access to UMBFS's Tax and Retirement Group to answer questions and
coordinate retirement plan options
o Follow up on IRAs, soliciting beneficiary and other information and sending
required minimum distribution reminder letters
o Money market funds for short-term investment or exchanges
o Dedicated service representatives
o Weekend and holiday shareholder services
o Customized reorder form tracking
o Give dealers access through NSCC's Fund/SERV and Networking
o Customized forms and applications
o Postal Clean Up
18
Schedule C
to the
Transfer Agent Agreement
by and between
Monterey Mutual Fund
and
UMB Fund Services, Inc.
Services
The following fees are charged for standard shareholder services:
Base fees
o Open account fee (per year)
o No load equity and non-daily accrual fixed income funds $8.50
o Additional for 12b-1 fee $0.75
o Additional for front-end load $1.50
o Additional for CDSC or back-end load $2.00
o Monthly dividend payments $1.00
o Money market and daily accrual fixed income funds $11.00
o Additional for 12b-1 fee $0.75
o Additional for front-end load $1.50
o Additional for CDSC or back-end load $2.00
o Monthly dividend payments $1.00
o Closed account fee (per year) $3.00
o Monthly base (per fund)
o One to three funds in fund family $1,500
o 4 or more funds in fund family $1,000
o Add for multiclass (per class) 25%
Account maintenance fees (per occurrence)
o New account set up $3.00
o Financial transactions $1.50
o Maintenance transactions $1.00
o Research/correspondence $2.50
o Transfer on death (XXX) set-up $7.50
o Fund/SERV
o Initial set-up per fund family $2,500
o New account set-up $1.00
o Per transaction - no load fund $0.25
o Per transaction - load fund $0.35
o Adjustments and rebills $2.50
o Fund/SERV direct charges at cost
19
o Commission/SERV (per check) $0.25
o ACH/AIP/SWP/automatic exchanges
o Set-up $1.00
o Per transaction $0.25
o Withholding per eligible account per year $0.25
o Account transcripts older than 2 years
(may be charged to shareholders) $5.00
o Locating lost shareholders $8.00
o Tax ID number solicitation $2.50
Shareholder servicing fees
o Telephone calls (per call) $2.50
o Annual maintenance per omnibus account $150
Tax and retirement fees
o Retirement accounts (XXX/Xxxx/others)
o Annual maintenance per account (may be
charged to shareholders) $12.50
o Account distribution (may be charged to shareholders) $12.50
o XXX transfer/rollover $7.50
Tax and retirement fees (upon request)
o Required minimum distribution (age 701/2)
o Correspondence letters $2.50
o Per calculation $7.50
o Removal of excess contributions
o Correspondence letters $2.50
o Per calculation $7.50
o Other solicitation letters
o Beneficiary information $2.50
o Birthday information $2.50
o Retirement plan documents (UMBFS shall have no responsibility
for the accuracy or completeness of such documents) as quoted
o Transfer on death documents as quoted
Document Services
o Per statement, confirmation and check processing $0.25
o Per tax form processing $0.25
o Per label printing for proxy or marketing purposes $0.10
o Bulk mailings/insert handling charge
o 1 insert $0.06
o 2 - 3 inserts $0.08
20
o 4 or more inserts as quoted
o Production of ad hoc reports starting at $100
Forms and Applications
o Standard applications and forms in electronic format no charge
o Customized forms as quoted
Reprocessings due to NAV errors
This charge applies when shareholder transactions are required to be reprocessed
as a result of NAV errors caused by other than the willful misconduct or
negligence of UMBFS.
o Base fee (per occurrence, per day, per fund) $750
o Transaction fee $1.00
UMBISG 4.prompt Services (per fund group)
o Tier I and II - Basic Service
o Monthly maintenance fee $125
o One time set up fee $750
Custom programming
Additional fees at $150 per hour or quoted by project may apply for special
programming to meet your servicing requirements or to create custom reports.
Out-of-Pocket Expenses
The Fund shall also pay/reimburse UMBFS's out-of-pocket and other related
expenses incurred in the performance of its Services under the Agreement.
Out-of-pocket expenses include, but are not limited to, travel, lodging and
meals in connection with travel in connection with Board meetings, Fund
conversion and deconversion and otherwise on behalf of the Fund, programming and
related expenses (previously incurred or to be incurred by UMBFS) in connection
with providing electronic transmission of data between UMBFS and the Fund's
other service providers, brokers, dealers and depositories, long distance
telephone charges, and photocopying, faxes, postage and overnight delivery
expenses. Typical expenses include:
Document Charges
o Copying charges (per page) $0.15
o Facsimile charges (per fax) $1.25
o Inventory and records storage $20.00/pallet
Supplies and Services
o Statement paper, check stock, envelopes, tax forms at cost
o Postage and express delivery charges at cost
21
o Tape/disk storage at cost
o Telephone and long distance at cost
o P.O. box rental at cost
o Toll-free number at cost
Bank Charges
o Bank account service fees and any other bank charges at cost
o Outgoing wire fee varies by bank
o Non-sufficient funds varies by bank
o Stopped check on money market funds $25.00
Special Services
Notwithstanding anything herein tot he contrary, to the extent UMBFS corrects,
verifies or addresses any prior actions or inactions by any Fund or by any prior
service provider, the Trust shall pay UMBFS compensation at the rate of $100 per
hour for such services, plus programming fees if necessary and out of pocket
expenses. Except to the extent UMBFS may require prepayment based on an estimate
of the time to be expended, payment shall be due promptly after receipt of an
invoice for such fees.
Optional Services
Certain premium services described on Exhibit B may be purchased on an as-needed
basis. Fees for premium services will be based on UMBFS's current rate at the
time services are purchased.
22
Schedule D
to the
Transfer Agent Agreement
by and between
Monterey Mutual Fund
and
UMB Fund Services, Inc.
RECORDS MAINTAINED BY UMBFS
Account applications
Canceled certificates plus stock powers and supporting documents
Checks including check registers, reconciliation records, any adjustment records
and tax withholding documentation
Indemnity bonds for replacement of lost or missing stock certificates and checks
Liquidation, redemption, withdrawal and transfer requests including stock
powers, signature guarantees and any supporting documentation
Shareholder correspondence
Shareholder transaction records
Share transaction history of the Funds
23
