Exhibit (h)(2)(b)
AMENDMENT TO THE
TRANSFER AGENCY AGREEMENT
THIS AMENDMENT, dated as of the 1st day of April, 2002 is made to the
Transfer Agency Agreement (the "Agreement") dated January 1, 1998 between each
registered investment company listed on Schedule A of the Agreement (as amended
from time to time) (each a "Fund") and PFPC INC. (f/k/a First Data Investor
Services Group, Inc.) ("PFPC").
WITNESSETH
WHEREAS, the parties to the Agreement desire to modify certain provision of
the Agreement.
NOW THEREFORE, the Fund and PFPC agree that as of the date first referenced
above, the Agreement shall be amended as follows:
1. All references in the Agreement to "First Data Investor Services Group,
Inc." and "FDISG" shall be replaced with "PFPC Inc." and "PFPC" respectively.
2. Section 10(b) is amended by adding the following new Section 10(b)(iv):
"or (iv) any acts or omissions of Xxxxx Xxxxx (as defined in Section 13(d);
3. Section 11(a) is hereby deleted in its entirety and replaced with the
following:
"Either party may terminate this Agreement without cause on or after July
31, 2003 by giving 180 days written notice to the other party"
4. Section 13 is hereby amended to add the following new Section 13(d):
"(d) Notwithstanding the foregoing provisions of this Section 13 to the
contrary, the parties acknowledge that PFPC shall enter into a Sub-Transfer
Agency Agreement with Xxxxx Xxxxx Management ("Xxxxx Xxxxx") pursuant to
which Xxxxx Xxxxx shall assume direct responsibility for the performance of
certain services described in this Agreement.
5. Exhibit 1 - Performance Standards, is hereby deleted in its entirety and
replaced with the revised Exhibit 1 attached hereto.
6. Schedule A - List of Fund Parties is hereby deleted and replaced with
the revised Schedule A attached hereto.
7. Schedule B - Duties of PFPC is hereby amended by adding the following
New Sections 9 and 10:
"9. Disaster Recovery Facility Services.
-----------------------------------
(a) In the event an unplanned condition renders the Fund's normal
operations facility located at 000 Xxxxx Xxxxxx, Xxxxxx, Xxxxxxxxxxxxx
to be inoperative (a "Disaster"), Transfer Agent agrees to provide
certain services on behalf of the Fund, as more fully described
herein.
(b) Upon notification by the Fund to Transfer Agent of a Disaster,
Transfer Agent shall make available to the Fund the equipment and
services at a PFPC facility in either Westborough or at such other
PFPC facility in New England as described in the attached Schedule E
of this Agreement.
10. National Quality Review. PFPC agrees to engage National Quality Review
("NQR") to perform NQR rating and quality performance review services with
respect to the PFPC Transaction Processing Area providing services to the
Funds hereunder and provide monthly reporting to the Funds relating
thereto."
8. Schedule C - Fee Schedule, as amended, is hereby deleted in its entirety
and replaced with the revised Schedule C attached hereto.
9. Amendment No. 1 to the Transfer Agency Agreement for IMPRESSNet(R)Services
executed on October 1, 1999 (the "IMPRESSNet(R) Amendment") is amended by adding
the following new Section 2(g):
"(g) XXXXXXXXxx.xxx(R). The parties hereby acknowledge that PFPC has ceased
to operate and maintain XXXXXXXXxx.xxx(R), the Internet Web site utilized by
Financial Planners to facilitate Account Inquiries and Financial Transactions
and PFPC has arranged to provide temporary Internet access for Financial
Planners through AdvisorCentral, LLC. In connection with the foregoing, upon the
earlier of (a) November 26, 2002; or (b) the execution by the Funds (or an
affiliate thereof) of an agreement directly with AdvisorCentral relating to
Financial Planner access to Fund and related Shareholder information via the
Internet, (i) all references to "Financial Planners" shall deleted from the
IMPRESSNet Amendment; and (ii) all reference to IMPRESSNet(R) Financial
Intermediary Fees shall be deleted from Schedule C - Transfer Agent Fees."
10. Infrastructure/PFPC System Upgrades. In addition to the foregoing, PFPC and
the Fund are in the process of finalizing a Business Requirements Document
relating to the upgrade of the network systems used in connection with the
connectivity between PFPC and the Funds, telephone and telephone switch
connectivity, IMPRESSPlus (including Image and CRM) infrastructure. Upon
execution by the parties of the Business Requirements Document, PFPC agrees to
perform the Infrastructure/PFPC System Upgrades described therein.
11. This Amendment contains the entire understanding between the parties with
respect to the transactions contemplated hereby. To the extent that any
2
provision of this Amendment modifies or is otherwise inconsistent with any
provision of the Transfer Agent Agreement and related agreements, this Amendment
shall control, but the Transfer Agent Agreement and all related documents shall
otherwise remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their duly authorized officers, as of the day and year first above
written.
The Funds Listed on Schedule A of the PFPC INC.
By: /s/ X. X. X'Xxxxxx By: /s/ Xxxxxxx Xxxxxxxx
--------------------------- ----------------------------------
Name: X. X. X'Xxxxxx Name: Xxxxxxx Xxxxxxxx
------------------------- --------------------------------
Title: Treasurer Title: Executive Vice President
------------------------ -------------------------------
3
SCHEDULE A
NAME SERIES/CLASSES
XXXXX XXXXX GROWTH TRUST
Xxxxx Xxxxx Asian Small Companies A, B
Xxxxx Xxxxx Growth Fund A, B, C
Xxxxx Xxxxx Greater China Growth Fund A, B, C
Xxxxx Xxxxx Information Age Fund A, B, C, D
Xxxxx Xxxxx Worldwide Health Sciences Fund A, B, C, D
XXXXX XXXXX INVESTMENT TRUST
Xxxxx Xxxxx California Limited Maturity Municipals Fund A, B
Xxxxx Xxxxx Florida Limited Maturity Municipals Fund A, B, C
Xxxxx Xxxxx Massachusetts Limited Maturity Municipals Fund A, B, C
Xxxxx Xxxxx National Limited Maturity Municipals Fund A, B, C
Xxxxx Xxxxx New Jersey Limited Maturity Municipals Fund A, B
Xxxxx Xxxxx New York Limited Maturity Municipals Fund A, B, C
Xxxxx Xxxxx Ohio Limited Maturity Municipals Fund A, B
Xxxxx Xxxxx Pennsylvania Limited Maturity Municipals Fund A, B, C
XXXXX XXXXX MUNICIPALS TRUST
Xxxxx Xxxxx Alabama Municipals Fund A, B
Xxxxx Xxxxx Arizona Municipals Fund A, B
Xxxxx Xxxxx Arkansas Municipals Fund A, B
Xxxxx Xxxxx California Municipals Fund A, B
Xxxxx Xxxxx Colorado Municipals Fund A, B
Xxxxx Xxxxx Connecticut Municipals Fund A, B
Xxxxx Xxxxx Florida Municipals Fund A, B
Xxxxx Xxxxx Georgia Municipals Fund A, B
Xxxxx Xxxxx Kentucky Municipals Fund A, B
Xxxxx Xxxxx Louisiana Municipals Fund A, B
Xxxxx Xxxxx Maryland, Municipals Fund A, B
Xxxxx Xxxxx Massachusetts Municipals Fund A B, I
Xxxxx Xxxxx Michigan Municipals Fund A, B
Xxxxx Xxxxx Minnesota Municipals Fund A, B
Xxxxx Xxxxx Mississippi Municipals Fund A, B
Xxxxx Xxxxx Missouri Municipals Fund A, B
Xxxxx Xxxxx National Municipals Fund A, B, C, I
Xxxxx Xxxxx New Jersey Municipals Fund A, B
Xxxxx Xxxxx New York Municipals Fund A, B
Xxxxx Xxxxx North Carolina Municipals Fund A, B
Xxxxx Xxxxx Ohio Municipals Fund A, B
Xxxxx Xxxxx Oregon Municipals Fund A, B
Xxxxx Xxxxx Pennsylvania Municipals Fund A, B
Xxxxx Xxxxx Rhode Island Municipals Fund A, B
Xxxxx Xxxxx South Carolina Municipals Fund A, B
Xxxxx Xxxxx Tennessee Municipals Fund A, B
Xxxxx Xxxxx Texas Municipals Fund A, B
Xxxxx Xxxxx Virginia Municipals Fund A, B
Xxxxx Xxxxx West Xxxxxxxx Municipals Fund A, B
4
XXXXX XXXXX MUNICIPALS TRUST II
Xxxxx Xxxxx Florida Insured Municipals Fund A, B
Xxxxx Xxxxx Hawaii Municipals Fund A, B
Xxxxx Xxxxx High Yield Municipals Fund A, B, C
Xxxxx Xxxxx Kansas Municipals Fund A, B
XXXXX XXXXX MUTUAL FUNDS TRUST
Xxxxx Xxxxx Cash Management Fund
Xxxxx Xxxxx Floating-Rate Fund, Advisers Class, B, C, I
Xxxxx Xxxxx Floating-Rate High Income Fund Advisers Class, B, C, I
Xxxxx Xxxxx Government Obligations Fund A, B, C
Xxxxx Xxxxx High Income Fund B, C
Xxxxx Xxxxx Insured High Income Fund A, B*
Xxxxx Xxxxx Insured Tax-Managed Emerging Growth Fund A, B*
Xxxxx Xxxxx Insured Tax-Managed Growth Fund A, B*
Xxxxx Xxxxx Insured Tax-Managed International Growth Fund A, B
Xxxxx Xxxxx International Growth Fund**
Xxxxx Xxxxx Money Market Fund
Xxxxx Xxxxx Municipal Bond Fund A, B, I
Xxxxx Xxxxx Strategic Income Fund A, B, C
Xxxxx Xxxxx Tax Free Reserves
Xxxxx Xxxxx Tax-Managed Capital Appreciation Fund A, B, C, D
Xxxxx Xxxxx Tax-Managed Emerging Growth Fund 1.1 A, B, C
Xxxxx Xxxxx Tax-Managed Emerging Growth Fund 1.2 A, B, C, D, I
Xxxxx Xxxxx Tax-Managed Growth Fund 1.1 A, B, C, I, S
Xxxxx Xxxxx Tax-Managed Growth Fund 1.2 A, B,C, D, I
Xxxxx Xxxxx Tax-Managed International Growth Fund A, B, C, D***
Xxxxx Xxxxx Tax-Managed Value Fund A, B, C, D***
Xxxxx Xxxxx Tax-Managed Young Shareholder Fund A, B, C, D
XXXXX XXXXX SERIES TRUST
Xxxxx Xxxxx Tax-Managed Growth Fund 1.0
XXXXX XXXXX SPECIAL INVESTMENT TRUST
Xxxxx Xxxxx Balanced Fund A, B, C
Xxxxx Xxxxx Emerging Markets Fund A, B
Xxxxx Xxxxx Greater India Fund A, B
Xxxxx Xxxxx Growth & Income Fund A, B, C
Xxxxx Xxxxx Institutional Emerging Markets Fund
Xxxxx Xxxxx Institutional Short Term Treasury Fund
Xxxxx Xxxxx Special Equities Fund A, B, C
Xxxxx Xxxxx Small Company Growth Fund
Xxxxx Xxxxx Utilities Fund A, B, C
5
XXXXX XXXXX VARIABLE TRUST
Xxxxx Xxxxx VT Floating-Rate Income Fund
Xxxxx Xxxxx VT Income Fund of Boston
Xxxxx Xxxxx VT Information Age Fund
Xxxxx Xxxxx VT Worldwide Health Sciences Fund
OTHER FUNDS
Xxxxx Xxxxx Advisers Senior Floating-Rate Fund
Xxxxx Xxxxx California Municipal Income Trust
Xxxxx Xxxxx Florida Municipal Income Trust
Xxxxx Xxxxx Income Fund of Boston A, I***
Xxxxx Xxxxx Massachusetts Municipal Income Trust
Xxxxx Xxxxx Michigan Municipal Income Trust
Xxxxx Xxxxx Municipal Income Trust
Xxxxx Xxxxx New Jersey Municipal Income Trust
Xxxxx Xxxxx New York Municipal Income Trust
Xxxxx Xxxxx Ohio Municipal Income Trust
Xxxxx Xxxxx Pennsylvania Municipal Income Trust
Xxxxx Xxxxx Prime Rate Reserves
Xxxxx Xxxxx Senior Income Trust
EV Classic Senior Floating-Rate Fund
Xxxxx Xxxxx Institutional Senior Floating-Rate Fund
Xxxxx Xxxxx Money Fund Ltd
* Not yet filed with SEC
** Expected to go effective at the SEC around the first of September
*** Scheduled to convert to master feeder structure 7/23/01
6
EXHIBIT 1
Performance Standards
TRANSACTION PROCESSING
Standard of Care
Transaction Type Performance Standards
--------------------- ---------------------- -------------------------
Transaction Type Standard Performance Exceptional - Award
--------------------- ---------------------- -------------------------
--------------------- ---------------------- -------------------------
New Accounts 79.3% - 88.4% > 95%
-
--------------------- ---------------------- -------------------------
--------------------- ---------------------- -------------------------
Financial 96.9% - 99.0% > 99.1%
-
--------------------- ---------------------- -------------------------
--------------------- ---------------------- -------------------------
Non- Financial 86.2% - 91.5% > 95%
-
--------------------- ---------------------- -------------------------
--------------------- ---------------------- -------------------------
Overall 91.2% - 94.5% > 95%
-
--------------------- ---------------------- -------------------------
o Performance will be measured and reported monthly with awards paid
quarterly based on quarterly averages.
o Awards will be applied quarterly to the next transfer agent fee xxxx
following receipt of the data from NQR.
o Standards are subject to revision annually based on the previous four
quarters of performance data from NQR.
o Measurement will begin in April 2002. However, awards will not begin until
second quarter 2002.
o Awards will be paid solely on the basis of meeting all NQR quality ratings
for each category. Further breakdown of the data to New Accounts, Financial
and Non-financial categories are provided to Xxxxx Xxxxx for informational
purposes only and do not factor into the award process.
7
CALL CENTER
Standard of Care
------------------------------------- ----------------------------------- -----------------------------------
Measurement Standard Performance Exceptional - Award
------------------------------------- ----------------------------------- -----------------------------------
------------------------------------- ----------------------------------- -----------------------------------
Call Quality as Measured by NQR Rating by NQR of 2.12 to 2.48 Rating by NQR above 2.48
------------------------------------- ----------------------------------- -----------------------------------
------------------------------------- ----------------------------------- -----------------------------------
Call Answer Rate as Measured by 97%-98% >98%
PFPC Call Monitoring System
------------------------------------- ----------------------------------- -----------------------------------
------------------------------------- ----------------------------------- -----------------------------------
Average Speed of Answer as Measured 30-20 seconds <20 seconds
by PFPC Call Monitoring System
------------------------------------- ----------------------------------- -----------------------------------
o Performances will be measured and reported monthly with awards paid
quarterly based on quarterly averages.
o Awards will be applied quarterly to the next transfer agent fee xxxx
following receipt of the data from NQR/Dalbar.
o Standards are subject to revision annually based on the previous four
quarters of performance data from NQR/Dalbar.
o Measurement will begin in April 2002. However, awards will not begin until
second quarter 2002.
o Awards are paid solely on the basis of NQR/Dalbar quality ratings. Call
answer rate and average speed of answer are provided to Xxxxx Xxxxx for
informational purposes only and do not factor into the award process.
8
XXXXX XXXXX REWARD PROPOSAL
Transaction Processing Annual
---------------------- ------
Exceptional - Reward $20,000 ($5,000 per quarter)
Correspondence
--------------
Exceptional - Reward $20,000 ($5,000 per quarter)
MCS
---
Exceptional - Reward $20,000 ($5,000 per quarter)
Control
-------
Exceptional - Reward $20,000 ($5,000 per quarter)
Call Center
-----------
Exceptional - Reward $20,000 ($5,000 per quarter)
TOTAL REWARDS AVAILABLE $100,000 per annum ($25,000 per
quarter )
Additional Points:
1. PFPC has committed to paying for the NQR-related costs for the
transaction processing review as a part of their commitment to care.
This cost is $85,000.
2. With the majority of the shareholder calls moving to Xxxxx Xxxxx in
2002, we would hope to have NQR or Dalbar measure the calls taken at
Xxxxx Xxxxx and measure the small team remaining at PFPC as a part of
the overall agreement. Measurement of the Westborough team as a
separate group would be necessary in order to attain the scores needed
to validate this system.
3. These award dollars will be placed in a fund available for staffing
incentives
9
ADDITONAL
XXXXX XXXXX
STANDARDS OF CARE
TRANSACTION PROCESSING
o New accounts - T
o TOA - New Accounts - T + 1
o Purchases - T
o Exchanges - T
o Transfers - T + 2
o Redemptions - T
o Maintenances - T + 4
CORRESPONDENCE/CALL OUTS
o Priority items ( financial ) - T + 1
o Non - Financial items - T + 3
ADJUSTMENTS
o All items Processed - T + 0
o All items Quality Control - T + 1
o Cancel/Rebill - T
MCS
o 99% > of Priority 6 Financial items received in good order prior to
2:30pm EST will be submitted for initial processing or research on T
o 99%> of all items received in good order by MCS prior to 2:30pm EST
will be assigned and acknowledged on the AHD system
o 80%> of all items received in good order by MCS prior to 2:30pm EST
will be resolved in T + 3
o 90%> of all items received in good order by MCS prior to 2:30pm EST
will be resolved T + 5
o 98%> completed item accuracy, as determined by dispute feedback
provided by Xxxxx Xxxxx Team Leaders and mutually agreed by MCS
Management
10
RESEARCH
o Priority Items ( Financial ) - R + 2
o Non-Financial Items - R + 3
o Other -
|| Statements, Tax Forms - ( Current to 1997) - R + 1
|| Transcripts/Fiche - ( 1997-1985) - R + 3
|| Items Prior to 1985 ( pulls from Iron Mountain ) - R + 5
|| Check Requests ( IPS ) - R + 1
|| Check Requests ( Mellon/BSDT) - R + 3
CALL CENTER
o Service Levels - Monthly Average > 90%
-
o Speed of Answer < 20 seconds
-
11
SCHEDULE C
FEES
REVISED AND EFFECTIVE AS OF APRIL 1, 2002
TRANSFER AGENCY SERVICES
I. PER ACCOUNT FEES.
A. OPEN ACCOUNT FEE:
1. DIRECT ACCOUNTS ( EHV ONLY):
For each of the first 500,000 accounts $14.00 per account, per annum
For each of the next 500,000 accounts $13.75 per account, per annum
For each of the next 500,000 accounts $13.50 per account, per annum
For each account over 1,500,000 accounts $13.25 per account, per annum
2. LEVEL I, II AND IV ACCOUNTS: $12.00 per account, per annum
3. LEVEL III NETWORKED ACCOUNTS:
For each of the first 500,000 accounts $9.75 per account, per annum
For each of the next 500,000 accounts $9.50 per account, per annum
For each of the next 500,000 accounts $9.25 per account, per annum
For each account over 1,500,000 accounts $9.00 per account, per annum
4. CHARITABLE GIFT TRUST ACCOUNTS:$8.00 per account, per annum
5. CLOSED ACCOUNT FEE: $3.00 per account, per annum
6. MONTHLY MINIMUM FEE: $2,000 per Class/Portfolio*
*PFPC will waive the minimum monthly fee for all portfolios/classes
existing as of April 1, 2002.
7. All Per Account Fees are billed monthly based on 1/12th of the annual
fee.
II. FUNDSERV/NETWORKING (WAIVED)
NSCC Services - Includes any or all of the following FundSERV, Networking,
Commission Settlement, ACATS and Mutual Fund Profile.
PFPC Setup fee: $2,000.00 one-time set-up charge
per fund family
12
PFPC Transaction fees:
FundSERV $0.10 per transaction
Networking No Charge
Commission Settlement No Charge
ACATS No Charge
Mutual Fund Profile Service $10.00 per month per fund/class
($100 max per month)
Note: NSCC will deduct its monthly fee (out-of-pocket expense for
settlements; wire charges) on the 15th of each month from PFPC's cash
settlement that day. PFPC will include these charges on its next xxxx
as out-of-pocket expenses.
III. N.E.W.S. NO ADDITIONAL COST FOR FULL SERVICE
IV. IMPRESSNET
A. IMPRESSNET RETAIL:
1. ONE TIME SET-UP FEE (WAIVED)
------------------------------------------------------------------------
NUMBER OF ACCOUNTS (COUNTED AT IMPLEMENTATION) Set-Up Fee
------------------------------------------------------------------------
Less than 20,000 Accounts $15,000
------------------------------------------------------------------------
Between 20,001 and 50,000 Accounts $20,000
------------------------------------------------------------------------
Between 50,001 and 100,000 Accounts $25,000
------------------------------------------------------------------------
Between 100,001 and 500,000 Accounts $30,000
------------------------------------------------------------------------
Between 500,001 and 1,000,000 Accounts $40,000
------------------------------------------------------------------------
Over 1,000,000 Accounts $50,000
------------------------------------------------------------------------
2. ANNUAL RECURRING FEE:
------------------------------------------------------------------------
NUMBER OF ACCOUNTS1 Annual Fee
------------------------------------------------------------------------
Less than 20,000 Accounts $10,500
------------------------------------------------------------------------
Between 20,001 and 50,000 Accounts $14,000
------------------------------------------------------------------------
Between 50,001 and 100,000 Accounts $17,500
------------------------------------------------------------------------
Between 100,001 and 500,000 Accounts $21,000
------------------------------------------------------------------------
Between 500,001 and 1,000,000 Accounts $28,000
------------------------------------------------------------------------
Over 1,000,000 Accounts $35,000
------------------------------------------------------------------------
1 Counted at implementation and then at each subsequent anniversary
date from the date of implementation. Annual fee will be adjusted
accordingly.
13
3. MONTHLY MINIMUMS: (WAIVED)
-------------------------------------------------------------------------------
TRANSACTION
NUMBER OF ACCOUNTS INQUIRY MINIMUM MINIMUM
-------------------------------------------------------------------------------
Less than 20,000 Accounts $1,200 $120
-------------------------------------------------------------------------------
Between 20,001 and 50,000 Accounts $1,600 $160
-------------------------------------------------------------------------------
Between 50,001 and 100,000 Accounts $2,000 $200
-------------------------------------------------------------------------------
Between 100,001 and 500,000 Accounts $2,600 $260
-------------------------------------------------------------------------------
Between 500,001 and 1,000,000 Accounts $3,200 $320
-------------------------------------------------------------------------------
Over 1,000,000 Accounts $4,000 $400
-------------------------------------------------------------------------------
4. INQUIRY AND TRANSACTION FEES:
The fee for an Account Inquiry is $0.10 per occurrence. For an Account
Transaction, the fee is $0.50 per occurrence. These fees are tracked
and billed monthly.
$2.50 PIN Change charge (Waived).
5. VOLUME DISCOUNT FOR INQUIRIES:
------------------------------------------------------------------------
(OVER LIFE OF THE AGREEMENT) FEE PER INQUIRY
NUMBER OF INQUIRIES
------------------------------------------------------------------------
Less than 100,000 Inquiries $0.05
------------------------------------------------------------------------
Between 100,001 and 200,000 Inquiries $0.04
------------------------------------------------------------------------
Between 200,001 and 300,000 Inquiries $0.03
------------------------------------------------------------------------
Over 300,000 Inquiries $0.02
------------------------------------------------------------------------
6. CUSTOMIZATION FEE: $180 per hour
7. NEW ACCOUNT SET-UP WITH SETTLEMENT:
$1.50 per new account established with settlement
B. IMPRESSNET FINANCIAL INTERMEDIARY SOLUTION:
1. ONE TIME SET-UP FEE: (WAIVED)
------------------------------------------------------------------------
NUMBER OF ACCOUNTS (COUNTED AT IMPLEMENTATION) Set-Up Fee
------------------------------------------------------------------------
Less than 20,000 Accounts $15,000
------------------------------------------------------------------------
Between 20,001 and 50,000 Accounts $20,000
------------------------------------------------------------------------
Between 50,001 and 100,000 Accounts $25,000
------------------------------------------------------------------------
Between 100,001 and 500,000 Accounts $30,000
------------------------------------------------------------------------
Between 500,001 and 1,000,000 Accounts $40,000
------------------------------------------------------------------------
Over 1,000,000 Accounts $50,000
------------------------------------------------------------------------
14
2. ANNUAL RECURRING FEE:
------------------------------------------------------------------------
NUMBER OF XXXXXXXX0 Annual Fee
------------------------------------------------------------------------
Less than 20,000 Accounts $10,500
------------------------------------------------------------------------
Between 20,001 and 50,000 Accounts $14,000
------------------------------------------------------------------------
Between 50,001 and 100,000 Accounts $17,500
------------------------------------------------------------------------
Between 100,001 and 500,000 Accounts $21,000
------------------------------------------------------------------------
Between 500,001 and 1,000,000 Accounts $28,000
------------------------------------------------------------------------
Over 1,000,000 Accounts $35,000
------------------------------------------------------------------------
1 Counted at implementation and then at each subsequent anniversary date
from the date of implementation. Annual fee will be adjusted
accordingly.
3. MONTHLY MINIMUMS: (WAIVED)
------------------------------------------------------------------------
TRANSACTION
NUMBER OF ACCOUNTS INQUIRY MINIMUM MINIMUM
------------------------------------------------------------------------
Less than 20,000 Accounts $1,200 $120
------------------------------------------------------------------------
Between 20,001 and 50,000 Accounts $1,600 $160
------------------------------------------------------------------------
Between 50,001 and 100,000 Accounts $2,000 $200
------------------------------------------------------------------------
Between 100,001 and 500,000 Accounts $2,600 $260
------------------------------------------------------------------------
Between 500,001 and 1,000,000 Accounts $3,200 $320
------------------------------------------------------------------------
Over 1,000,000 Accounts $4,000 $400
------------------------------------------------------------------------
4. INQUIRY AND TRANSACTION FEES:
The fee for an Account Inquiry is $0.05 per occurrence. For an Account
Transaction, the fee is $0.30 per occurrence. These fees are tracked
and billed monthly.
5. VOLUME DISCOUNT FOR INQUIRIES:
------------------------------------------------------------------------
(OVER LIFE OF THE AGREEMENT) FEE PER INQUIRY
NUMBER OF INQUIRIES
------------------------------------------------------------------------
Less than 100,000 Inquiries $0.05
------------------------------------------------------------------------
Between 100,001 and 200,000 Inquiries $0.04
------------------------------------------------------------------------
Between 200,001 and 300,000 Inquiries $0.03
------------------------------------------------------------------------
Over 300,000 Inquiries $0.02
------------------------------------------------------------------------
6. CUSTOMIZATION FEE: $180 per hour
7. NEW ACCOUNT SET-UP WITH SETTLEMENT:
$1.50 per new account established with settlement
15
V. DAZL(R)
DAZL(R), PFPC's electronic data transfer tool, enables fund companies
to provide instant access to the most current mutual fund and client
account information. And because DAZL is integrated with a wide
variety of portfolio management software applications and mainframe
systems, Xxxxx Xxxxx can deliver information through the Internet or
through traditional methods. This means DAZL will provide Xxxxx Xxxxx
with a powerful tool to enhance the service you provide to your
various distribution partners, including financial professionals,
broker/dealers, trust companies and TPAs.
DAZL(R)FEES: (IF APPLICABLE) CAPPED AT $500,000 PER 12-MONTH PERIOD
1. ONE-TIME SET-UP FEE: $5,000
Includes management company level coding, report programming.
2. MONTHLY MAINTENANCE FEE: $1,000
Includes client and broker dealer access to DAZL(R) Support Group.
3. DAZL(R) BASE TRANSMISSION FEE/RECORD:
Price records $0.015
Other records $0.030
(security, distribution, account master, transaction, position)
4. DAZL(R)DIRECT/INTERACTIVE/TRUST/401K/ICI/MGT. CO. LEVEL FEE/RECORD:
Price records $0.01
Other records $0.01
(security, distribution, account master, transaction, position)
5. ENHANCEMENT FEE: $150.00 per hour
VI. VOICE RESPONSE UNIT: (WAIVED)
o $10,000 Set-up charge
o $500 per month maintenance fee
o $0.23 per minute
o $0.10 per call
o Customization Programming: $150.00 per hour
VI. COST BASIS ACCOUNTING: (WAIVED)
$0.125 per eligible account per year
16
VII. TRAINING: (WAIVED)
$125 per hour per resource
Travel & Entertainment is not included in hourly rate
VIII. DISASTER RECOVERY
Use of Disaster Recovery Services provided at no charge for the first
thirty (30) days following declaration of disaster. Thereafter, the
charge will be $250.00 per/week per workstation
Annual Disaster Recovery Testing included
IX. INFRASTRUCTURE/UPGRADES TO SYSTEMS:
(As per agreed upon Business Requirements Document)
$500,000.00 - ($166,000.00 per annum to be paid in monthly
increments). In the event the Fund terminates this Agreement prior to
payment in full, the remaining amount due shall be paid in full upon
such termination.
X. BANKING FEES: (WAIVED)
Banking fees will be waived to the extent of banking credits.
XI. DEDICATED TEAM: (WAIVED)
2 BSAs @ $65,000 $130,000
2 Programmers @ $100,000 $200,000
--------
Total Cost $330,000
XII. DIGITAL RECORDING:
Based on $0.08 per call
XIII. PRINT MAIL:
Printing: $0.08 per image (confirms and statements) (Waived)
$0.10 per check
Machine Insertion: $32.00/K pages (includes 1 BRE/CRE)
$0.01/each additional insert
12B1/Dealer Commission Checks/Statements:
$0.78/each envelope with $100.00 minimum
Mail Preparation: $0.035 per piece
Fast Forward $0.20 per hit
17
Courier: $30.00 for each on call courier trip/or actual cost for
on demand
Overnight: $3.50 per package service charge plus Federal
Express/Airborne charge
Inventory Storage: $25.00 for each inventory location as of the 15th
of the month
Inventory Receipt and dump: $20.00 for each SKU / Shipment
Folding, special projects, opening envelopes, manual
inserting: $55.00/K pages
Special Pulls: $3.00 per account pull
Boxes/Envelopes:
Shipping boxes $0.85 each
Oversized Envelopes $0.45 each
Programming:
1 dedicated mainframe programmer No charge
1 BSA/tester to support programmer No charge
Digital Services in PDF:
Per image to produce: $0.025
Per image on PFPC server: $0.01
Tax Forms (1099, 5498, 1042, K1, cba wash):
Print/Process: $0.42 per package
Dupe Tax Forms:
Print/Process: $0.50 per package
IX. XXXXX XXXXX SERVICES
In connection with the services performed by Xxxxx Xxxxx as described
in Section 13(d), effective July 1, 2002 the Funds shall pay to PFPC
an amount equal to the lesser of (i) actual expense of Xxxxx Xxxxx
associated with providing such services; or (ii) $2,500,000.00
annually. All such fees received by PFPC shall be paid to Xxxxx Xxxxx
pursuant to the terms of the Sub-Transfer Agency Agreement between
PFPC and Xxxxx Xxxxx.
18
Schedule D
Out-of-Pocket Expenses and Miscellaneous Charges
The Fund shall reimburse PFPC monthly for applicable out-of-pocket expenses and
pay for miscellaneous charges, including, but not limited to, the following
items:
Out-of-Pocket Expenses
o Postage (bulk, pre-sort, ZIP+4, barcoding, first class) direct
pass-through to the Fund
o Due diligence mailings
o Telephone and telecommunication costs, including all lease,
maintenance and line costs
o Proxy solicitations, mailings and tabulations - Daily and Distribution
advice mailings
o Shipping, Certified and Overnight mail and insurance - Year-end form
production and mailings
o Duplicating services, as pre-approved by the Fund
o Courier services
o IPS check processing fees
o Third-party signature card scanning charges
o Overtime, as approved by the Fund
o Temporary staff, as approved by the Fund
o Travel and entertainment, as approved by the Fund
o Record retention, retrieval and destruction costs, including, but not
limited to, exit fees charged by third-party record keeping vendors
o Third-party audit reviews o Certificate Insurance o Such other
miscellaneous out-of-pocket expenses reasonably incurred by PFPC in
performing its duties and responsibilities under this Agreement
Miscellaneous Charges
o Microfiche, microfilm or image production
o COLD (Computer Output to Laser Disc)
o Magnetic media tapes and freight
o Stock costs, including certificates, envelopes, checks and stationery
o Diskette Upload Program maintenance
o Ad Hoc Reports (Waived)
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SCHEDULE E
DISASTER RECOVERY SERVICES
1. EQUIPMENT. Upon notification by the Fund to Transfer Agent of a Disaster,
Transfer Agent shall make available to the Fund the following equipment and
services:
QTY TYPE DESCRIPTION
WORKAREA(S): 30 Stations Pre-wired Workspace with PFPC
mainframe access including FSR
and IMPRESSPlus
VOICE RECOVERY: 30 Phonesets PBX connected into a defined
split & Recorded
Note: Fund responsible for any call re-routing to Transfer Agent
through its carrier(s).
PC/STATIONS: 30 PC/Stations Pentium III
LAN PRINTER(S): 1 Laser Printers Hewlett Packard LaserJet 5 Printer
w/ 8 MB Memory w/ HP JetDirect
10Base-T Ethernet Card
2. TOTAL ANNUAL DISASTER RECOVERY TEST TIME
Emergency Response Backup Capability 48 Hours/Year
3. SPECIAL TERMS:
A. The equipment described in this Schedule may be substituted by
Transfer Agent with comparable or equivalent units.
B. Transfer Agent provided Emergency Response PC/Stations will be
equipped with [Windows 2000] [Need to Determine] or higher version
level software. Fund will provide station application software.
Fund represents and warrants that it has taken all reasonable
precautions to protect the Fund supplied software and computer systems
from infection by any computer virus. Transfer Agent represents and
warrants that it has taken all reasonable precautions to protect the
Transfer Agent Inc. supplied software and computer systems from
infection by any computer virus.
C. Maximum Fund personnel for the Emergency Response Backup Capability is
limited to the quantity of Emergency Response Workarea Stations plus a
reasonable amount of technical support personnel as agreed to by
Transfer Agent.
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D. L. Fund's access to and use of the Backup Capability shall be limited
to the quantities and configurations set forth in this Schedule.
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