SUB-ADMINISTRATION AGREEMENT
THIS AGREEMENT is made as of this 1st day of May, 1997, by and between
GABELLI FUNDS, INC. (the "Administrator"), and BISYS FUND SERVICES LIMITED
PARTNERSHIP, d/b/a BISYS FUND SERVICES ("BISYS").
WHEREAS, the Administrator is responsible for the provision of
administrative services to The Treasurer's Fund, Inc. (the "Company") and each
of the Portfolios (hereinafter referred to individually as a "Portfolio" and
collectively as the "Portfolios") of the Company;
WHEREAS, the Company is an open-end management investment company
registered under the Investment Company Act of 1940, as amended (the "1940
Act"); and
WHEREAS, the Administrator desires to retain BISYS to assist it in
performing administrative services with respect to each Portfolio and BISYS is
willing to perform such services on the terms and conditions set forth in this
Agreement.
NOW, THEREFORE, in consideration of the premises and the covenants
hereinafter contained, the Administrator and BISYS hereby agree as follows:
ARTICLE 1. Retention of BISYS. The Administrator hereby engages BISYS to
furnish each Portfolio with the administrative services as set forth in Article
2 below (collectively, the "Services"). BISYS shall, for all purposes herein, be
deemed to be an independent contractor and, unless otherwise expressly provided
or authorized, shall have no authority to act for or represent the Administrator
or the Company in any way.
ARTICLE 2. Administrative Services. BISYS shall perform or supervise the
performance by others of administrative services in connection with the
operations of the Portfolios, and, on behalf of the Company, will investigate,
assist in the selection of and conduct relations with custodians, depositories,
accountants, legal counsel, underwriters, brokers and dealers, corporate
fiduciaries, insurers, banks and persons in any other capacity deemed to be
necessary or desirable for the Portfolios' operations. BISYS shall provide the
Trustees of the Company with such reports regarding investment performance as
they may reasonably request but shall have no responsibility for supervising the
performance by any investment adviser or sub-adviser of its responsibilities.
BISYS shall provide the Company with regulatory reporting, all necessary
office space, equipment, personnel, compensation and facilities (including
facilities for meetings of shareholders ("Shareholders") and Directors of the
Company) for handling the affairs of the Portfolios and such other services as
BISYS and the Administrator shall, from time to time, determine to be necessary
to perform BISYS' obligations under this Agreement. In addition, at the request
of the Board of Directors, BISYS shall make reports to the Company's Directors
concerning the performance of its obligations hereunder.
Without limiting the generality of the foregoing, BISYS shall:
(a) calculate contractual Company expenses and provide necessary
instructions for all disbursements for the Company, and as
appropriate compute the Company's yields, total return, expense
ratios, portfolio turnover rate, average commission rate and, if
required, portfolio average dollar-weighted maturity;
(b) assist Company counsel with the preparation of prospectuses,
statements of additional information, registration statements and
proxy materials;
(c) prepare such reports, applications and documents (including reports
regarding the sale and redemption of Shares as may be required in
order to comply with Federal and state securities law) as may be
necessary or desirable to register the Company's Shares with state
securities authorities, monitor the sale of Company Shares for
compliance with state securities laws, and file with the appropriate
state securities authorities the registration statements and reports
for the Company and the Company's Shares and all amendments thereto,
as may be necessary or convenient to register and keep effective the
Company and its Shares with state securities authorities to enable
the Company to make a continuous offering of its Shares;
(d) develop and prepare, with the assistance of the Administrator,
communications to Shareholders, including the annual report to
Shareholders, coordinate the mailing of prospectuses, notices, proxy
statements, proxies and other reports to Shareholders, and supervise
and facilitate the proxy solicitation process for all shareholder
meetings, including the tabulation of shareholder votes;
(e) administer contracts on behalf of the Company with, among others,
the Company's investment adviser, distributor, custodian, transfer
agent and fund accountant;
(f) supervise the Company's transfer agent with respect to the payment
of dividends and other distributions to Shareholders;
(g) calculate performance data of the Portfolios for dissemination to
information services covering the investment company industry;
(h) prepare or cause to be prepared at its expense the filing of the
Company's tax returns;
(i) examine and review the operations and performance of the various
organizations providing services to the Company or any Portfolio,
including, without limitation, the investment adviser, distributor,
custodian, fund accountant, transfer agent, outside legal counsel
and independent public accountants, and, at the request of the Board
of Directors, report to the Board on the performance of such
organizations;
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(j) assist with the layout and printing of publicly disseminated
prospectuses and assist with and coordinate layout and printing of
the Company's quarterly, semi-annual and annual reports to
Shareholders;
(k) assist with the design, development, and operation of the
Portfolios, including new classes, investment objectives, policies
and structure;
(l) provide individuals reasonably acceptable to the Company's Board of
Directors to serve as officers of the Company, who will be
responsible for the management of certain of the Company's affairs
as determined by the Company's Board of Directors;
(m) advise the Company and its Board of Directors on matters concerning
the Company and its affairs;
(n) obtain and keep in effect fidelity bonds and directors and
officers/errors and omissions insurance policies for the Company in
accordance with the requirements of Rules 17g-1 and 17d-1(7) under
the 1940 Act as such bonds and policies are approved by the
Company's Board of Directors;
(o) monitor and advise the Company and its Portfolios on their regulated
investment company status under the Internal Revenue Code of 1986,
as amended;
(p) perform all administrative services and functions of the Company and
each Portfolio to the extent administrative services and functions
are not provided to the Company or such Portfolio pursuant to the
Company's or such Portfolio's administration agreement, investment
advisory agreement, distribution agreement, custodian agreement,
transfer agent agreement and fund accounting agreement;
(q) furnish advice and recommendations with respect to other aspects of
the business and affairs of the Portfolios as the Administrator and
BISYS shall determine desirable;
(r) prepare and file with the SEC the semi-annual report for the Company
on Form N-SAR and all required notices pursuant to Rule 24f-2;
(s) assist the Company with respect to SEC examinations, including the
furnishing of documents and information, as appropriate, and
responding to SEC examination letters; and
(t) assist the Company in preparing for Board meetings by (i)
coordinating board book production and distribution, (ii) preparing
Board agendas, (iii) preparing the BISYS section of Board materials,
(iv) preparing special Board meeting materials, including but not
limited to, materials relating to annual contract approvals and
12b-1 plan
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approvals, as agreed upon by the parties, and (v) such other Board
meeting functions that are agreed upon by the parties.
BISYS shall perform such other services for the Company that are mutually
agreed upon by the parties from time to time. Such services may include
performing internal audit examinations; mailing the annual reports of the
Portfolios; preparing an annual list of Shareholders; and mailing notices of
Shareholders' meetings, proxies and proxy statements, for all of which the
Administrator will pay or cause to be paid BISYS' reasonable out-of-pocket
expenses.
ARTICLE 3. Allocation of Charges and Expenses.
(A) BISYS. BISYS shall furnish at its own expense the executive,
supervisory and clerical personnel necessary to perform its obligations under
this Agreement. BISYS shall also provide the items which it is obligated to
provide under this Agreement, and shall pay all compensation, if any, of
officers of the Company as well as all Directors of the Company who are
affiliated persons of BISYS or any affiliated company of BISYS; provided,
however, that unless otherwise specifically provided, BISYS shall not be
obligated to pay the compensation of any employee of the Company retained by the
Directors of the Company to perform services on behalf of the Company.
(B) The Administrator. The Administrator hereby represents that the
Company has undertaken to pay or cause to be paid all other expenses of the
Company not otherwise allocated herein, including, without limitation,
organization costs, taxes, expenses for legal and auditing services, the
expenses of preparing (including typesetting), printing and mailing reports,
prospectuses, statements of additional information, proxy solicitation material
and notices to existing Shareholders, all expenses incurred in connection with
issuing and redeeming Shares, the costs of custodial services, the cost of
initial and ongoing registration of the Shares under Federal and state
securities laws, fees and out-of-pocket expenses of Directors who are not
affiliated persons of the Administrator or the Investment Adviser to the Company
or any affiliated corporation of the Administrator or the Investment Adviser,
insurance, interest, brokerage costs, litigation and other extraordinary or
nonrecurring expenses, and all fees and charges of investment advisers to the
Company.
ARTICLE 4. Compensation of BISYS.
(A) Sub-Administration Fee. For the services rendered, the facilities
furnished and the expenses assumed by BISYS pursuant to this Agreement, the
Administrator shall pay to BISYS compensation at an annual rate specified in
Schedule A attached hereto.
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(B) Survival of Compensation Rights. All rights of compensation under this
Agreement for services performed as of the termination date shall survive the
termination of this Agreement.
ARTICLE 5. Limitation of Liability of BISYS. The duties of BISYS shall be
confined to those expressly set forth herein, and no implied duties are assumed
by or may be asserted against BISYS hereunder. BISYS shall not be liable for any
error of judgment or mistake of law or for any loss arising out of any act or
omission in carrying out its duties hereunder, except a loss resulting from
willful misfeasance, bad faith or negligence in the performance of its duties,
or by reason of reckless disregard of its obligations and duties hereunder,
except as may otherwise be provided under provisions of applicable law which
cannot be waived or modified hereby. (As used in this Article 5, the term
"BISYS" shall include partners, officers, employees and other agents of BISYS as
well as BISYS itself.)
So long as BISYS acts in good faith and with due diligence and without
negligence, the Administrator assumes full responsibility and shall indemnify
BISYS and hold it harmless from and against any and all actions, suits and
claims, whether groundless or otherwise, and from and against any and all
losses, damages, costs, charges, reasonable counsel fees and disbursements,
payments, expenses and liabilities (including reasonable investigation expenses)
arising directly or indirectly out of BISYS' actions taken or nonactions with
respect to the performance of services hereunder. The indemnity and defense
provisions set forth herein shall indefinitely survive the termination of this
Agreement.
The rights hereunder shall include the right to reasonable advances of
defense expenses in the event of any pending or threatened litigation with
respect to which indemnification hereunder may ultimately be merited. In order
that the indemnification provision contained herein shall apply, however, it is
understood that if in any case the Administrator may be asked to indemnify or
hold BISYS harmless, the Administrator shall be fully and promptly advised of
all pertinent facts concerning the situation in question, and it is further
understood that BISYS will use all reasonable care to identify and notify the
Administrator promptly concerning any situation which presents or appears likely
to present the probability of such a claim for indemnification against the
Administrator, but failure to do so in good faith shall not affect the rights
hereunder.
The Administrator shall be entitled to participate at its own expense or,
if it so elects, to assume the defense of any suit brought to enforce any claims
subject to this indemnity provision. If the Administrator elects to assume the
defense of any such claim, the defense shall be conducted by counsel chosen by
the Administrator and satisfactory to BISYS, whose approval shall not be
unreasonably withheld. In the event that the Administrator elects to assume the
defense of any suit and retain counsel, BISYS shall bear the fees and expenses
of any additional counsel retained by it. If the Administrator does not elect to
assume the defense of a suit, it will reimburse BISYS for the reasonable fees
and expenses of any counsel retained by BISYS.
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BISYS may apply to the Administrator at any time for instructions and may
consult counsel for the Administrator or its own counsel and with accountants
and other experts with respect to any matter arising in connection with BISYS'
duties, and BISYS shall not be liable or accountable for any action taken or
omitted by it in good faith in accordance with such instruction or with the
opinion of such counsel, accountants or other experts.
Also, BISYS shall be protected in acting upon any document which it
reasonably believes to be genuine and to have been signed or presented by the
proper person or persons. BISYS will not be held to have notice of any change of
authority of any officers, employees or agents of the Administrator until
receipt of written notice thereof from the Administrator.
ARTICLE 6. Activities of BISYS. The services of BISYS rendered hereunder
are not to be deemed to be exclusive. BISYS is free to render such services to
others and to have other businesses and interests. It is understood that
directors, officers, employees and Shareholders are or may be or become
interested in BISYS, as officers, employees or otherwise and that partners,
officers and employees of BISYS and its counsel are or may be or become
similarly interested in the Company, and that BISYS may be or become interested
in the Company as a Shareholder or otherwise.
ARTICLE 7. Duration of this Agreement. The Term of this Agreement shall be
as specified in Schedule A hereto.
ARTICLE 8. Assignment. This Agreement shall not be assignable by either
party without the written consent of the other party; provided, however, that
BISYS may, with the prior consent of the Administrator, at its expense,
subcontract with any entity or person concerning the provision of the services
contemplated hereunder. BISYS shall not, however, be relieved of any of its
obligations under this Agreement by the appointment of such subcontractor and
provided further, that BISYS shall be responsible, to the extent provided in
Article 5 hereof, for all acts of such subcontractor as if such acts were its
own. This Agreement shall be binding upon, and shall inure to the benefit of,
the parties hereto and their respective successors and permitted assigns.
ARTICLE 9. Amendments. This Agreement may be amended if such amendment is
specifically approved in writing by the parties hereto.
ARTICLE 10. Certain Records. BISYS shall maintain customary records in
connection with its duties as specified in this Agreement. Any records required
to be maintained and preserved pursuant to Rules 31a-1 and 31a-2 under the 1940
Act which are prepared or maintained by BISYS on behalf of the Company shall be
prepared and maintained at the expense of BISYS, but shall be the property of
the Company and will be made available to or surrendered promptly to the Company
on request.
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In case of any request or demand for the inspection of such records by
another party, BISYS shall notify the Administrator and follow the
Administrator's instructions as to permitting or refusing such inspection;
provided that BISYS may exhibit such records to any person in any case where it
is advised by its counsel that it may be held liable for failure to do so,
unless (in cases involving potential exposure only to civil liability) the
Administrator or the Company has agreed to indemnify BISYS against such
liability.
ARTICLE 11. Definitions of Certain Terms. The terms "interested person"
and "affiliated person," when used in this Agreement, shall have the respective
meanings specified in the 1940 Act and the rules and regulations thereunder,
subject to such exemptions as may be granted by the Securities and Exchange
Commission.
ARTICLE 12. Notice. Any notice required or permitted to be given by either
party to the other shall be deemed sufficient if sent by registered or certified
mail, postage prepaid, addressed by the party giving notice to the other party
at the following address: if to BISYS, to it at 0000 Xxxxxxx Xxxx, Xxxxxxxx,
Xxxx 00000, Attention: Xxxxxx X. Xxxxxxxx, Esq.; if to the Administrator, to it
at Xxx Xxxxxxxxx Xxxxxx, Xxx, Xxx Xxxx 00000-0000, Attention: Xxxxx X. Xxxxxx,
or at such other address as such party may from time to time specify in writing
to the other party pursuant to this Section.
ARTICLE 13. Confidential Information. Each party acknowledges that it may
acquire knowledge and information relating to the other party and its affiliates
or the Company including, but not limited to, information pertaining to business
plans, employees, customers and/or suppliers, and that all such knowledge and
information acquired or developed is and shall be confidential and proprietary
information (all such confidential and proprietary information is herein
collectively referred to as the "Confidential Information"). Each party agrees
to hold the Confidential Information in strict confidence, to refrain from
directly or indirectly disclosing it to others or using it in any way except for
purposes of performing services hereunder, and to prevent any unauthorized
person access to it either before or after termination of this Agreement,
without the prior written consent of the other party. Both parties further agree
to take all action reasonable and necessary to protect the confidentiality of
the Confidential Information. The parties shall use their best efforts to have
their directors, officers, employees and agents agree to the terms of this
Section. The obligations of the parties contained in this section shall survive
termination of this Agreement. Neither party's confidentiality obligations under
this provision shall apply to such information that (i) was in the public domain
or available to a third party without restrictions at or prior to the time such
information was made known to such party, (ii) had been independently known to
such party at the time of disclosure from persons who were not subject to
similar confidentiality obligations, or (iii) is required to be disclosed by law
(except that each party will use best efforts to give the other party written
notice prior to any such disclosure).
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ARTICLE 14. Governing Law. This Agreement shall be construed in accordance
with the laws of the State of Ohio and the applicable provisions of the 1940
Act. To the extent that the applicable laws of the State of Ohio, or any of the
provisions herein, conflict with the applicable provisions of the 1940 Act, the
latter shall control.
ARTICLE 15. Multiple Originals. This Agreement may be executed in two or
more counterparts, each of which when so executed shall be deemed to be an
original, but such counterparts shall together constitute but one and the same
instrument.
IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the day and year first above written.
GABELLI FUNDS, INC.
By:/s/ Xxxxx Xxxxxx
------------------------------------
Title: VP & COO
---------------------------------
BISYS FUND SERVICES LIMITED
PARTNERSHIP
By: BISYS Fund Services, Inc.
General Partner
By:/s/ Xxxxxx X. Xxxxxxxx
------------------------------------
Title: Senior Vice President
---------------------------------
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SCHEDULE A
TO THE SUB-ADMINISTRATION AGREEMENT
DATED AS OF MAY 1, 1997
BETWEEN GABELLI FUNDS, INC.
AND
BISYS FUND SERVICES LIMITED PARTNERSHIP
Portfolios: This Agreement shall apply to all Portfolios, either now or
hereafter created, of the Company. The current Portfolios are
set forth below.
U. S. Treasury Money Market Portfolio
Domestic Prime Money Market Portfolio
Global Money Market Portfolio
Tax Exempt Money Market Portfolio
Limited Term Portfolio
Tax Exempt Limited Term Portfolio
Fees: Pursuant to Article 4, in consideration of services rendered
and expenses assumed pursuant to this Agreement, the
Administrator will pay BISYS on the first business day of each
month, or at such time(s) as BISYS shall request and the
parties hereto shall agree, a fee based upon a prorated
portion (as more particularly described below) of the assets
of all registered management investment companies for which
BISYS serves as Subadministrator that are advised by Teton
Advisers, LLC, Gabelli Funds, Inc., Gabelli Fixed Income
L.L.C. or their affiliates ("BISYS-administered Investment
Companies"). Such fee shall be computed daily at the annual
rate of:
Six and one-quarter one-hundredths of one percent
(.0625%) of the BISYS-administered Investment Companies'
average daily net assets up to $350 million.
Four and one-quarter one-hundredths of one percent
(.0425%) of the BISYS-administered Investment Companies'
average daily net assets in excess of $350 million up to
$700 million.
Two and one-quarter one-hundredths of one percent
(.0225%) of the BISYS-administered Investment Companies'
average daily net assets in excess of $700 million.
The prorated portion of the fees that are payable to BISYS
under this Agreement shall be that portion of the fees
described above that is attributable to the average daily net
assets of the Portfolios. The fees set forth above shall be
subject to a minimum annual fee of $20,000 for each Portfolio.
Such fees shall be paid to BISYS
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on the first business day of each month or at such other
time(s) as the parties may agree upon.
The fee for the period from the day of the month this
Agreement is entered into until the end of that month shall be
prorated according to the proportion which such period bears
to the full monthly period. Upon any termination of this
Agreement before the end of any month, the fee for such part
of a month shall be prorated according to the proportion which
such period bears to the full monthly period and shall be
payable upon the date of termination of this Agreement.
For purposes of determining the fees payable to BISYS, the
value of the net assets of a particular Portfolio shall be
computed in the manner described in the Company's Articles of
Incorporation or in the Prospectus or Statement of Additional
Information respecting that Portfolio as from time to time is
in effect for the computation of the value of such net assets
in connection with the determination of the liquidating value
of the shares of such Portfolio.
The parties hereby confirm that the fees payable hereunder
shall be applied to each Portfolio as a whole, and not to
separate classes of shares within the Portfolios.
Term: The initial term of this Agreement (the "Initial Term") shall
commence on May 1, 1997 and shall remain in effect through
December 31, 1997. This Agreement shall be renewed
automatically for successive periods of one year after the
Initial Term, unless written notice of nonrenewal is provided
by either party not less than 90 days prior to the end of the
Initial Term or 90 days advance written notice of termination
is provided by either party at any time following the Initial
Term. In the event of any breach of this Agreement by either
party, the non-breaching party shall notify the breaching
party in writing of such breach and upon receipt of such
notice, the breaching party shall have 45 days to remedy the
breach. In the event any material breach is not remedied
within such time period, the nonbreaching party may
immediately terminate this Agreement.
Notwithstanding the foregoing, after such termination for so
long as BISYS, with the written consent of the Administrator,
in fact continues to perform any one or more of the services
contemplated by this Agreement or any schedule or exhibit
hereto, the provisions of this Agreement, including without
limitation the provisions dealing with indemnification, shall
continue in full force and effect. Compensation due BISYS and
unpaid by the Administrator upon such termination shall be
immediately due and payable upon and notwithstanding such
termination. BISYS shall be entitled to collect from the
Administrator, in addition to the compensation described in
this Schedule A, all costs reasonably incurred in connection
with BISYS' activities in effecting such termination,
including without limitation, the delivery to the Company
and/or its designees of the Company's property, records,
instruments and documents,
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or any copies thereof. To the extent that BISYS may retain in
its possession copies of any Company documents or records
subsequent to such termination which copies had not been
requested by the Administrator on behalf of the Company in
connection with the termination process described above, BISYS
will provide the Company with reasonable access to such
copies; provided, however, that, in exchange therefor, the
Administrator shall reimburse BISYS for all costs reasonably
incurred in connection therewith.
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