Exhibit (h)(42)
Sub-Transfer Agency Agreement dated as of August 28, 2002 between Fringe Benefit
Design of Minnesota, Banc One Investment Advisors Corporation, and One Group
Mutual Funds.
SUB-TRANSFER AGENCY AGREEMENT
AGREEMENT made as of August 28, 2002 by and between Fringe Benefits
Design of MN ("Recordkeeper"), Banc One Investment Advisors Corporation (the
"Advisor") and One Group Mutual Funds (the "Trust").
WHEREAS, the Trust desires to enter into a Sub Transfer Agency
Agreement pursuant to which the Trust will retain the Recordkeeper to perform
certain Recordkeeping and accounting services and functions with respect to
transactions in Trust shares ("Shares") made by or on behalf of participants in
certain defined contribution employee benefit or retirement plans, and with
respect to holdings of Shares maintained by or on behalf of such participants,
when with respect to the Trust such plans maintain with the Trust's transfer
agent ("Transfer Agent") a single master shareholder account; and
NOW, THEREFORE, in consideration of the following premises and mutual
covenants, the parties agree as follows:
1. Services Provided by The Recordkeeper
When and to the extent requested by the Trust, the Recordkeeper agrees
to perform recordkeeping and account services and functions with respect to
transactions in Shares made by or on behalf of participants in the Plan
("Participants"), and with respect to holding of Shares maintained by or on
behalf of participants, when with respect to the Trust the Plan maintains with
the Transfer Agent plan level shareholder accounts. To the extent requested, the
Recordkeeper will provide the following services:
A. Maintain separate records for each Participant reflecting Shares
purchased, redeemed and exchanged on behalf of such Participant and
outstanding balances of Shares owned by or for the benefit of such
Participant.
B. Prepare and transmit to Plan and/or its Participants periodic
account statements indicating the number of shares of the Trust owned
by or for the benefit of Participants and purchases, redemptions and
exchanges made on behalf of Participants.
C. With respect to the Plan, aggregate all purchase, redemption and
exchange orders made by or on behalf of the Plan's Participants and
transmit instructions based on such aggregate orders ("Instructions")
to the Transfer Agent for acceptance.
D. Provide to the Trust, the Transfer Agent and/or other parties
designated by them such other information relating to transactions in
and holdings of Shares by or on behalf of Participants as is reasonably
requested.
E. As agreed upon with the Trust, deliver or arrange for the delivery
of appropriate documentation in connection with orders.
2. Appointment as Agent For Limited Purpose
The Recordkeeper shall be deemed the agent of the Trust for the sole
and limited purpose of receiving purchase redemption and exchange orders from
Participants and transmitting corresponding instructions to the Transfer Agent.
Except as provided specifically herein, neither the Trust nor any person to
which the Trust may delegate any of its duties hereunder shall be or hold itself
out as an agent of the Transfer Agent or the Trust.
3. Representations of Recordkeeper
The Recordkeeper agrees, represents and warrants that:
A. It will forward Instructions within such time periods and to such
parties as are specified by the Trust, the Transfer Agent, the Trust's
prospectuses and applicable law and regulation.
B. If and to the extent required under applicable federal and state
securities laws and regulations, it is duly registered pursuant to such
laws and regulations, it is not a "fiduciary" of any Plan as such term
defined in Section 3(21) of the Employment Retirement Income Security
Act of 1974, as amended ("ERISA"), and Section 4975 the Internal
Revenue Code of 1986, amended (the "Code"): and the receipt of any fees
by it from the Trust, and the corresponding reduction of fees payable
to the Recordkeeper by the Plan (or by the P1an sponsor, according to
Recordkeeper's agreement with the Plan) will not constitute a
"prohibited transaction" for purposes of Title I of ERISA and Section
4975 of the Code.
C. At all times during the term of this contract, the Recordkeeper will
maintain errors and omissions coverage in an amount not less than
$1,000,000 per occurrence, and in the aggregate. A certificate of
insurance evidencing such coverage will be provided by the Recordkeeper
to One Group Mutual Funds as soon as is practicable after commencement
of this Agreement.
4 Records and Reporting
The Recordkeeper will maintain and preserve all records as required by
law in connection with its provision of services under this Agreement. Upon the
reasonable request of the Funds or the Transfer Agent, the Recordkeeper will
provide copies of. historical records relating to transactions involving the
Trust and Participants; written communications regarding the Trust to or from
participants; and other materials relating to the provision of services by the
Recordkeeper under this Agreement. The Recordkeeper will comply with any
reasonable request for such information and documents made by the Trust, or its
board of Trustees or any governmental body or self-regulatory organization. The
Recordkeeper agrees that, with respect to the Plans regarding which it is
providing services under this Agreement, the Recordkeeper will permit the Trust,
the Transfer Agent, or their representatives to have; reasonable access to it
personnel and records in order to facilitate the monitoring of the quality of
the services provided by the Recordkeeper. Notwithstanding anything herein to
the contrary, the Recordkeeper shall
not be required to provide the names and addresses of Participants to the
Transfer Agent or the Trust, unless applicable law or regulation otherwise
requires.
5. Ability to Provide Services
The Recordkeeper agrees to notify the Trust promptly if for any reason it is
unable to perform its obligations under this Agreement.
6. Compensation
A In consideration of performance of the services by the Recordkeeper
hereunder, the Trust will compensate the Recordkeeper 15 basis points
up to a maximum of $15.00 per participant accounts annually as to which
the Trust and the Recordkeeper agree from time-to-time in writing. For
any amount in excess of $15.00 per participant annually, compensation
will be paid by Banc One Investment Advisors Corporation.
B. The Recordkeeper will permit the Trust and their representatives
(including counsel and independent accounts) with reasonable access to
its records to enable the Trust to verify that the Recordkeeper's
charges hereunder comply with the provisions of this Agreement. Such
access shall include, but not be limited to, up to four on-site
inspections of the Recordkeeper's records each calendar year.
7. Indemnification
The Recordkeeper shall indemnify and hold harmless the Trust from and
against any and all losses and liabilities that it may incur, including without
limitation reasonable attorneys' fees, expenses and costs arising out of or
related to the performance or non-performance of the Recordkeeper of its
responsibilities under this Agreement, excluding, however, any such claims,
suits, loss, damage or costs caused by, contributed to or arising from any
non-compliance by the Trust with its obligations under this Agreement, as to
which the Trust as pertinent, shall indemnify, hold harmless and defend the
Recordkeeper on the same basis as set forth above.
8 Termination
This Agreement may be terminated at any time by either parry hereto
upon ninety (90) days written notice to the other. The provisions of paragraphs
4 and 7 shall continue in full force and effect after termination of this
Agreement.
9. Anti-Money Laundering
The Recordkeeper will comply with all applicable laws and regulations
aimed at preventing, detecting, and reporting money laundering and suspicious
transactions and will take all necessary and appropriate steps, consistent with
applicable regulations and generally accepted industry practices, to (i) obtain,
verify, and retain information with regard to investor identification and source
of investor funds, and (ii) to maintain records of all investor transactions.
The Recordkeeper will (but only to the extent consistent with applicable law)
take
all steps necessary and appropriate to provide One Group with any requested
information about investors and accounts in the event that One Group shall
request such information due to an inquiry or investigation by any law
enforcement, regulatory, or administrative authority. To the extent permitted by
applicable law and regulations, the Recordkeeper will notify One Group of any
concerns that the Recordkeeper may have in connection with any investor in the
context of relevant anti-money laundering legislation/regulations.
10. Limitation of Liability of the Trustees and Shareholders
It is expressly agreed that the obligations of the Trust hereunder
shall not be binding upon any of the Trustees, shareholders, nominees, officers,
agents or employees of the Trust personally, but shall bind only the trust
property of the Trust. The execution and delivery of this Agreement has been
authorized by the Trustees, and this Agreement has been signed and delivered by
an authorized officer of the Trust, acting as such, and neither such
authorization by the Trustees nor such execution and delivery by such officer
shall be deemed to have been made by any of them individually or to impose any
liability on any of them personally, but shall bind only the trust property of
the Trust as provided in the Trust's Agreement and Declaration of Trust.
11. Miscellaneous
This Agreement represents the entire Agreement between the parties with
regard to the matters described herein and may not be modified or amended except
by written instrument executed by all parties. This Agreement may not be
assigned by either party hereto without the prior written consent of the other
parties. This Agreement is made and shall be construed under the laws of the
State of Ohio. This Agreement supersedes all previous agreements and
understandings between the parties with respect to its subject matter. If any
provision of the Agreement shall be held or made invalid by a statute, rule,
regulation, decision of a tribunal or otherwise, the remainder of the Agreement
shall not be affected thereby.
The names 'One Group Mutual Funds' and 'Trustees of the One Group
Mutual Funds' refer respectively to the Trust created and the Declaration of
Trust dated May 23, 1985, as amended and restated February 18, 1999, to which
reference is hereby made and a copy of which is on file at the office of the
Secretary of the Commonwealth of Massachusetts and elsewhere as required by law,
and to any and all amendments thereto so filed or hereafter filed. The
obligations of `One Group Mutual Funds' entered into in the name or on behalf
thereof by any of the Trustees, representatives or agents are made not
individually, but in such capacities, and are not binding upon any of the
Trustees, Shareholders or representatives of the Trust personally, but bind only
the assets of the Trust, and all persons dealing with any series of Shares of
the Trust must look solely to the assets of the Trust belonging to such series
for the enforcement of any claims against the Trust.
IN WITNESS HEREOF, the parties hereto have executed and delivered this Agreement
as of the date first above written.
ONE GROUP MUTUAL FUNDS
By: /s/ Xxxxxx X. Xxxxx
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Title: Treasurer
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Fringe Benefits Design of MN (Recordkeeper)
By: Xxx . R. Girth
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Title: President/CEO
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BANC ONE INVESTMENT ADVISORS CORPORATION
By: /s/ Xxxx X. Xxxxxx
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Title: Senior Managing Director
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