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EXHIBIT 99(e)(iii)(E)
AMENDMENT TO OPERATING AGREEMENT
This Amendment ("Amendment") is made as of October 18, 1999, by and
between Xxxxxxx Xxxxxx & Co., Inc. ("Schwab"), a California corporation, and
each registered investment company ("Fund Company") executing this Amendment on
its own behalf and on behalf of each of its series or classes of shares
("Fund(s)") listed on Schedule I hereto, and amends the Operating Agreement
between the parties, made as of October 25, 1996, as amended thereafter
("Operating Agreement"). All capitalized terms used in the Amendment and not
defined herein shall have the meaning ascribed to them in the Operating
Agreement.
WHEREAS, the parties wish to amend Schedule I to the Operating
Agreement; and
WHEREAS, the parties wish to institute the payment of Account
establishment and maintenance fees to be paid by each Fund for which the
effective date of such Fund on Schedule 1 is on or after the date on which this
Amendment is made, such fees to be set forth on a Schedule II.
NOW, THEREFORE, in consideration of the foregoing and the mutual
promises set forth below, the parties agree as follows:
1. The following Section 4 is hereby inserted as Section 4 of the
Operating Agreement. Sections 4 through 12 are renumbered as Section 5 through
13, respectively.
4. Account Establishment and Maintenance Fees
Fund Company shall pay to Schwab such fees as are set
forth on Schedule II hereto to reimburse Schwab for its costs in
establishing and maintaining Account(s) for each Fund that is
designated "FEE 2" on Schedule I and for which the effective date of
such Fund is October 18, 1999, or any date thereafter. The fee shall be
paid at the time and in the manner set forth in Schedule II.
2. Schedule I to the Operating Agreement shall be deleted in its
entirety and the Schedule I attached hereto shall be inserted in lieu thereof.
3. The attached Schedule II is hereby inserted as Schedule II to the
Operating Agreement.
4. Schedule II may be amended by Schwab on forty (40) days' written
notice to Fund Company or such earlier time as shall be agreed to by the
parties.
5. Except as specifically set forth herein, all other provisions of the
Operating Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Amendment as of the
date first written above.
XXXXXXX XXXXXX & CO., INC. XXXXXXXX FUNDS (previously named Fairport
Funds), on its own behalf and on behalf
of each Fund listed on Schedule I hereto.
By: /s/ Xxxx Xxxxx By:
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Xxxx Xxxxx
Vice President/Mutual Funds Name:
Operations Administration -------------------------------------
Title:
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Date:
----------------------------- Date:
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SCHEDULE I
TO THE OPERATING AGREEMENT
Fund Company/Funds Effective Date
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Xxxxxxxx Funds (previously named Fairport Funds)
Xxxxxxxx Emerging Growth Fund* FEE 2 10/18/99
Xxxxxxxx Government Securities Fund* 11/19/96
Xxxxxxxx Growth & Income Fund* 11/19/96
Xxxxxxxx Growth Fund* 11/19/96
Xxxxxxxx International Equity Fund* FEE 2 10/18199
* Indicates that Fund is a "no-load" or "no sales charge" Fund as defined
in Rule 2830 of the NASDR.
SI Indicates that Fund is available only to MFMP investors through Schwab
Institutional or another advice program offered or made available by
financial institutions clearing transactions through Schwab.
FEE 2 Indicates that Fund is subject to Account Establishment and
Maintenance Fees and the terms thereof as set forth on Schedule II.
Accepted by:
XXXXXXX XXXXXX & CO., INC. XXXXXXXX FUNDS (previously named Fairport
Funds), on its own behalf and on behalf
of each Fund listed on Schedule I hereto.
By: /s/ Xxxx Xxxxx By:
-------------------------------- --------------------------------------
Xxxx Xxxxx
Vice President/Mutual Funds Name:
Operations Administration ------------------------------------
Title:
-----------------------------------
Date:
------------------------------- Date:
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SCHEDULE II
TO THE OPERATING AGREEMENT
Fees to Establish and Maintain Account(s) for a Fund
Establishment Fee
The Establishment Fee for the Account(s) for each Fund for which the
effective date of such Fund on Schedule I is October 18, 1999, or any date
thereafter, is $6,000. The Establishment Fee for each Fund shall be paid prior
to establishment of the Account(s) for such Fund.
Maintenance Fee
a. The Maintenance Fee as to the Account(s) for each Fund for which the
effective date of such Fund on Schedule I is October 18, 1999, Or any date
thereafter, shall be billed in arrears on February 28 (or February 29 in a leap
year) and August 31 (each an "Assessment Date") commencing on the first
Assessment Date after the establishment of the Account(s) for the Fund on the
Schwab system. The Maintenance Fee as to the Account(s) of a Fund shall continue
to be paid as long as there are any shares held in the Account(s). The
Maintenance Fee shall be paid by wire transfer within thirty (30) days after
Fund Company's receipt of the invoice. Such wire transfers shall be separate
from wire transfers of redemption proceeds or distributions under this
Agreement.
b. The Maintenance Fee as to the Account(s) for a Fund is $1,000 per
full month of establishment on Xxxxxx'x system since the previous Assessment
Date unless the assets held in the Account(s) for the Fund are in excess of $5
million on the Assessment Date. If the assets held in the Account(s) for a Fund
are in excess of $5 million on the Assessment Date, then the Maintenance Fee as
to the Account(s) for the Fund for such period is $0.
c. For purposes of this calculation, the value of the shares of each
Fund will be the net asset value reported by such Fund to the National
Association of Securities Dealers, Inc. Automated Quotation System. No
adjustments will be made to the net asset values to correct errors in the net
asset values so reported for any Assessment Date unless such error is corrected
and the corrected net asset value per share is reported to Schwab before 5
o'clock, p.m., San Francisco time, on the next business day after the Assessment
Date to which the error relates. For purposes of this Exhibit, a "Business Day"
is any day the New York Stock Exchange is open for trading.
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XXXXXXX XXXXXX
MUTUAL FUND MARKETPLACE(R)
Exhibit B
Fund Information
This exhibit must be completed for each Fund participating in Xxxxxx'x Mutual
Fund Marketplace(R).
A. General Information
1. a. Name of Fund Company: Xxxxxxxx Funds
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b. Name of Fund: Xxxxxxxx Emerging Growth Fund
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c. Name of family of funds (if applicable)
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d. Inception date of Fund
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2. The investment objective of the Fund is (circle one)
NOTE: IF THERE IS A DIFFERENCE, OBJECTIVE IN PARENTHESIS INDICATES
OBJECTIVE THAT WILL APPEAR IN MUTUAL FUNDS PERFORMANCE GUIDE(R).
EQUITY FUNDS
a. Small Capitalization Growth
b. Small Capitalization Value
c. Small Capitalization Blend
d. Medium Capitalization Growth
e. Medium Capitalization Value
f. Medium Capitalization Blend
g. Large Capitalization Growth
h. Large Capitalization Value
i. Large Capitalization Blend
j. Index.
k. Precious Metals/Gold
1. Specialty/Sector
m. Foreign Stock
n. World Stock
o. European Stock
p. Japan Stock
q. Pacific Stock
r. Diversified Pacific Stock
s. Latin America
t. Diversified Emerging Markets
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If you circled One of the categories above, your investment philosophy is based
on: (circle one)
a. Value
b. Growth
HYBRID FUNDS
a. Domestic Hybrid
b. International Hybrid
TAXABLE BOND FUNDS
a. Ultra-Short-Term Corporate Bond
b. Short-Term Corporate Bond
c. Intermediate-Term Corporate Bond
d. Long-Term Corporate Bond
e. Short-Term Government Bond
f. Intermediate-Term Government Bond
g. Long-Term Government Bond
h. High Yield Bond
i. Convertible Bonds
j. Multi-Sector Bonds
k. International Bonds
MUNICIPAL BOND FUNDS
a. Muni (short-term)
b. Muni (intermediate-term)
c. Muni (long-term)
d. Muni Single-State (short-term)
e. Muni Single-State (long-term)
Please describe the fund's investment orientation in 200 characters or less.
This information will be used in the Xxxxxxx Xxxxxx Funds Performance Guide and
the internal mutual fund screen accessed by our registered representatives.
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3. Please provide the Schwab Omnibus Account Number(s) for this fund.
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4. Cusip Number
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5. NASDAQ Quote Symbol
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6. Does the Fund provide daily quotations to quotation vendors?
(yes or no)
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7. Is Fund price listed in the Wall Street Journal? (yes or no)
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8. Assets in Fund ($) (as of date)
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9. Number of Shareholders (as of date)
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10. We will be using Xxxxxx'x minimum investment requirement if the Fund's
minimums are less. Xxxxxx'x Brokerage Account minimums are $2500 for
initial investments and $500 for subsequents. Xxxxxx'x XXX account
minimums are $1000 for initial investments and $500 for subsequents.
Xxxxxx'x custodial account minimums are $1000 for initial investments
and $100 for subsequents.
11. Does the Fund impose any load or other charges that result in different
prices for purchases and redemptions? (yes or no)
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If yes, please indicate the type and amount of charges incurred when
purchasing or redeeming shares.
a. Front-end load (yes or no) If yes, %
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b. Back-end load (yes or no) If yes, %
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c. Is back-end load a contingent deferred load? (yes or no)
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If yes, please explain
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d. Redemption fee (yes or no) If yes, %
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e. Is redemption fee based on age? (yes or no)
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If yes, please explain
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f. 12b-1 fee (yes or no) If yes, %
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12. If the Fund charges loads, are there any privileged accounts (such as
accounts managed by an investment advisor or accounts for employee
trusts, pension, profit-sharing, or other employee benefit plans that
qualify under Sections 401, 403(b)(7), or 457 of the Internal Revenue
Code) that are not subject to a sales charge? (yes or no)
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If yes, please list those accounts, their requirements and
their special privileges
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13. Schwab places its usual customer purchase orders in dollars at the
Fund. On an exception basis, is it necessary to place orders in shares
to reconcile share differences. Does the Fund allow purchase orders in
shares? (yes or no)
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Does the Fund allow redemption orders in dollars? (yes or no)
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14. Does the Fund and/or the transfer agent charge any special fees,
outside of wiring fees, in connection with any transaction?
(yes or no)
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If yes, please explain
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15. Will Schwab be allowed to place telephone purchases and redemptions?
(yes or no) If yes, where can the language in the prospectus be located
that allows for telephone transactions? (page number)
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16. Are there limits on the number of redemptions or round trips among
funds in fund family? (yes or no)
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If answer to 16 is yes, Fund Company agrees 1) to waive those
limits for investors purchasing and redeeming Fund shares
through Schwab, and 2) to adequately disclose in its
prospectus the Fund's ability to waive these limits.
17. Does the Fund offer any exchange transaction privileges?
(yes or no )
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If yes, is there a fee charged for this transaction?
(yes or no )
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If yes, please explain
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18. Does the Fund reserve the right to redeem in kind? (yes or no)
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If no, please skip to # 19. If yes, please answer the following:
a. Where can the language in the prospectus disclosing the
reservation of the right to redeem in kind be located? (page
number)
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b. Has the Fund filed an election on Form N-18F-l with the SEC
limiting its right to redeem in kind? (yes or no)
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19. Is the Fund qualified for sale in all 50 states and the District of
Columbia? (yes or no)
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If no, please list those states where share of the Fund cannot be
offered for sale or sold.
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Is the Fund qualified for sale in Puerto Rico (yes or no)
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Has the Fund authorized the sale of its shares in Virgin Islands?
(yes or no)
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If yes, please list and explain any restriction on such sale.
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Is the Fund qualified for sale in any other U.S. territory
(yes or no)
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If yes, please list those territories
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20. Is the Fund registered for sale in any foreign country? (yes or no)
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If yes, please list
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Are there any restrictions on such sales? (yes or no)
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If yes, please explain
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THE FUND AGREES TO IMMEDIATELY NOTIFY SCHWAB OF ANY CHANGES TO THE
ABOVE REGISTRATION INFORMATION.
21. Does the Fund prospectus contain the disclosure that a broker may
charge a transaction fee if shares are purchased and/or redeemed
through a broker? (yes or no)
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On what page number is the disclosure mentioned?
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22. What is the date of the current Fund prospectus?
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23. What is the anticipated date of the next prospectus?
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24. If the prospectus incorporates more than one fund and/or class of
shares, please explain.
25. Date of the Fund supplements, If any.
26. Date of all states specific supplements, if any, and the name(s) of
each state.
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B. Distribution Information
Questions 81-85 should be completed for all funds.
1. How many decimal places is the dividend rate?
2. At what interval in which month(s) does the fund pay dividends (i.e.,
monthly, quarterly, semi-annually, annually etc.)?
a. Are distributions declared and paid on a regular schedule?
(yes or no)
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If so, what is the schedule used to determine future
payments?
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c. On what date are reinvested dividend shares posted to
accounts? (ex-date, payable date, other?)
3. Does the Fund pay its capital gain in December? (yes or no)
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If no, in what month is it paid?
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4. Are distributions reinvested at the net asset value or public offering
price?
5. At what day's price is dividend reinvestment calculated (ex-date,
payable date, other?)
a. What time of day is the reinvestment available?
C. Daily Dividend Fund Information
Questions C1-C12 are for daily dividend funds only.
1. Distribution Accrual Period: For each dividend accrual period,
dividends are accrued beginning on the______ day of the ______
(month/quarter) and ending on the _____ day of the (month/quarter).
2. Distribution Payable Date: On what day of the month arc dividends
payable?
3. Daily Rate: To what number of decimal places is the daily dividend rate
calculated:
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At what time of day is the daily dividend rates available?
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4. Does the Fund compound daily?
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5. Purchases begin accruing dividends on which days? (trade date plus one
calendar day, trade date plus one business day, settlement date,
settlement date plus one, other)
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6. Redemptions accrue dividends up to and including which date? (trade
date minus One calendar day trade date minus one business day, trade
date, settlement date)
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7. Does the Fund process weekend cumulative rates on Friday or Monday?
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8. Does the Fund split its weekend rate (Friday/Saturday, Sunday/Monday)?
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9. If the accrual period ends on a weekend or holiday. how does this
affect the Fund's accrual period?
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10. At what day's price is dividend reinvestment calculated (payable,
other)?
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11. On which day of the Fund's accrual period do reinvested dividends and
capital gains begin accruing interest? (payable, payable date plus one
calendar day, payable date plus one business day)
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12. On a transfer of shares from an individual account to Xxxxxx'x omnibus
account, does the accrual: (Check appropriate item)
a. _____ Follow the transferred shares
b. _____ Remain with the direct customer account as an accrual and
reinvested the next at the next payable date
c. _____ Remain at the customer account as an accrual to be paid in
cash at the next payable date
d. _____ Other (please explain)
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