TRANSFER AGENCY AND SERVICES AGREEMENT
THIS AGREEMENT, dated as of this 1st day of January, 2003 between THE
GALAXY FUND (the "Fund"), a Massachusetts business trust, and PFPC INC.
("PFPC"), a Massachusetts corporation.
WITNESSETH
WHEREAS, the Fund is authorized to issue Shares in separate classes and
series, with each such class representing interests in a separate portfolio of
securities or other assets;
WHEREAS, the Fund initially intends to offer Shares in those Portfolios
identified in the attached Exhibit 1, which such Portfolios, together with all
other Portfolios subsequently established by the Fund, shall be subject to this
Agreement in accordance with Article 14; and
WHEREAS, the Fund, on behalf of the Portfolios, desires to appoint PFPC
as its transfer agent, dividend disbursing agent and agent in connection with
certain other activities and PFPC desires to accept such appointment;
NOW, THEREFORE, in consideration of the mutual covenants and promises
hereinafter set forth, the Fund and PFPC agree as follows:
Article 1 DEFINITIONS.
1.1 Whenever used in this Agreement, the following words and phrases,
unless the context otherwise requires, shall have the following meanings:
(a) "Articles of Incorporation" shall mean the Articles of
Incorporation, Declaration of Trust, or other similar organizational
document as the case may be, of the Fund as the same may be amended from
time to time.
(b) "Authorized Person" shall be deemed to include (i) any
authorized officer of the Fund; or (ii) any person, whether or not such
person is an officer or employee of the Fund, duly authorized to give
Oral Instructions or Written Instructions on behalf of the Fund as
indicated in writing to PFPC from time to time.
(c) "Board of Directors" shall mean the Board of Directors or
Board of Trustees of the Fund, as the case may be.
(d) "Commission" shall mean the Securities and Exchange
Commission.
(e) "Custodian" refers to any custodian or subcustodian of
securities and other property which the Fund may from time to time
deposit, or cause to be deposited or held under its name or account, with
such a custodian or subcustodian pursuant to a Custodian or Subcustodian
Agreement.
(f) "1933 Act" shall mean the Securities Act of 1933 and the rules
and regulations promulgated thereunder, all as amended from time to time.
(g) "1934 Act" shall mean the Securities Exchange Act of 1934 and
the rules and regulations promulgated thereunder, all as amended from
time to time.
(h) "1940 Act" shall mean the Investment Company Act of 1940 and
the rules and regulations promulgated thereunder, all as amended from
time to time.
(i) "Oral Instructions" shall mean instructions, other than
Written Instructions, actually received by PFPC from an Authorized Person
or from a person reasonably believed by PFPC to be an Authorized Person.
(j) "Portfolio" shall mean each separate class of shares offered
by the Fund representing interests in a separate portfolio of securities
and other assets.
(k) "Prospectus" shall mean the most recently dated Fund
Prospectuses and Statements of Additional Information, including any
supplements thereto if any, which have become effective under the 1933
Act and the 1940 Act.
(l) "Shares" refers collectively to such shares of capital stock
or beneficial interest, as the case may be, or class or series thereof,
of each respective Portfolio of the Fund as may be issued from time to
time.
(m) "Shareholder" shall mean a record owner of at least one Share
or any fraction thereof of each respective Portfolio of the Fund.
(n) "Written Instructions" shall mean a written communication
signed by an Authorized Person or by a person reasonably believed by PFPC
to be an Authorized Person and actually received by PFPC. Written
Instructions shall include manually executed originals and authorized
electronic transmissions, including telefacsimile of a manually executed
original or other process.
Article 2 APPOINTMENT OF PFPC.
The Fund, on behalf of the Portfolios, hereby appoints and constitutes
PFPC as transfer agent and dividend disbursing agent for Shares of each
respective Portfolio of the Fund and as shareholder servicing agent for the Fund
for the period and on the terms set forth in this Agreement. The Fund may from
time to time issue separate classes or series of Shares or classify
or reclassify Shares of each class or series. PFPC shall identify to each such
class or series property belonging to such class or series and in such reports,
confirmations and notices to the Fund called for under this Agreement shall
identify the class or series to which such report, confirmation or notice
pertains. PFPC accepts such appointment and agrees to furnish the services
herein set forth and in accordance with the written procedures which may be
agreed to in writing from time to time by the Fund and PFPC, in return for the
compensation as provided in Section 6 of this Agreement, subject, however, to
the performance standards set forth in Appendix I to this Agreement.
Article 3 DUTIES OF PFPC.
3.1 PFPC shall be responsible for:
(a) Administering and/or performing the customary services of a
transfer agent; acting as service agent in connection with dividend and
distribution functions; and performing shareholder account and
administrative agent functions in connection with the issuance, transfer
and redemption or repurchase (including coordination with the Custodian)
of Shares of each Portfolio, as more fully described in the written
schedule of Duties of PFPC annexed hereto as Schedule A and incorporated
herein, and in accordance with the terms of the Prospectus of the Fund on
behalf of the applicable Portfolio, applicable law and the procedures
agreed to in writing from time to time by PFPC and the Fund.
(b) Recording the issuance of Shares and maintaining pursuant to
Rule 17Ad-10(e) of the 1934 Act a record of the total number of Shares of
each Portfolio which are authorized, based upon data provided to it by
the Fund, and issued and outstanding. PFPC shall provide the Fund on a
regular basis with the total number of Shares of each Portfolio which are
authorized and issued and outstanding and shall have no obligation, when
recording the issuance of Shares, to monitor the issuance of such Shares
or to take cognizance of any laws relating to the issue or sale of such
Shares, which functions shall be the sole responsibility of the Fund.
(c) In addition to providing the foregoing services, the Fund
hereby engages PFPC to provide the print/mail services as set forth in
Schedule B annexed hereto and incorporated herein, for the fees also
identified in Schedule B. PFPC agrees to perform such print/mail services
subject to the terms and conditions of this Agreement.
(d) Notwithstanding any of the foregoing provisions of this
Agreement, PFPC shall be under no duty or obligation to inquire into, and
shall not be liable for: (i) the legality of the issuance or sale of any
Shares or the sufficiency of the amount to be received therefor; (ii) the
legality of the redemption of any Shares, or the propriety of the amount
to be paid therefor; (iii) the legality of the declaration of any
dividend by the Board of Directors, or the legality of the issuance of
any Shares in payment of any dividend; or (iv) the legality of any
recapitalization or readjustment of the Shares.
3.2 In addition, the Fund shall (i) identify to PFPC in writing those
transactions and assets to be treated as exempt from blue sky reporting for each
state and (ii) verify the establishment of transactions for each state on the
system prior to activation and thereafter monitor the daily activity for each
state. The responsibility of PFPC for the Fund's blue sky state registration
status is solely limited to the initial establishment of transactions subject to
blue sky compliance by the Fund and the reporting of such transactions to the
Fund as provided above.
3.3 In addition to the duties set forth herein, PFPC shall perform such
other duties and functions, and shall be paid such amounts therefor, as may from
time to time be agreed upon in writing by the Fund and PFPC.
Article 4 RECORDKEEPING AND OTHER INFORMATION.
4.1 PFPC shall create and maintain all records required of it pursuant to
its duties hereunder and as set forth in Schedule A in accordance with all
applicable laws, rules and regulations, including records required by Section
31(a) of the 1940 Act. Where applicable, such records shall be maintained by
PFPC for the periods and in the places required by Rule 31a-2 under the 1940
Act.
4.2 To the extent required by Section 31 of the 1940 Act, PFPC agrees
that all such records prepared or maintained by PFPC relating to the services to
be performed by PFPC hereunder are the property of the Fund and will be
preserved, maintained and made available in accordance with such Section and
other applicable securities laws and rules and regulations. The Fund, or the
Fund's authorized representatives, shall have access to such records at all
times during PFPC's normal business hours and such records will be surrendered
promptly to the Fund on and in accordance with the Fund's request. Upon the
reasonable request of the Fund, copies of any such records shall be provided by
PFPC to the Fund or the Fund's authorized representatives at the Fund's expense.
4.3 In case of any requests or demands for the inspection of Shareholder
records of the Fund, PFPC will endeavor to notify the Fund of such request and
secure Written Instructions as to the handling of such request. PFPC reserves
the right, however, to exhibit the Shareholder records to any person whenever it
is advised by its counsel that it may be held liable for the failure to comply
with such request.
Article 5 FUND INSTRUCTIONS.
5.1 Subject to PFPC meeting the standard of care set forth in Article 11,
PFPC will have no liability when acting upon Written or Oral Instructions
reasonably believed to have been executed or orally communicated by an
Authorized Person and will not be held to have any notice of any change of
authority of any person until receipt of a Written Instruction thereof from the
Fund. PFPC will also have no liability when processing Share certificates which
it
reasonably believes to bear the proper manual or facsimile signatures of the
officers of the Fund and the proper countersignature of PFPC.
5.2 At any time, PFPC may request Written Instructions from the Fund and
may seek advice from legal counsel for the Fund, or its own legal counsel, at
its own expense, with respect to any matter arising in connection with this
Agreement, and subject to PFPC meeting the standard of care set forth in Article
11, it shall not be liable for any action taken or not taken by it in good faith
in accordance with such Written Instructions or in accordance with the advice of
counsel for the Fund or for PFPC. Written Instructions requested by PFPC
pursuant to this Section 5.2 will be provided by the Fund within a reasonable
period of time.
5.3 Unless otherwise provided in this Agreement, PFPC, its officers,
agents or employees, shall act only upon Oral Instructions or Written
Instructions and shall be entitled to rely upon any Oral Instructions and any
Written Instructions actually received by them pursuant to this Agreement,
provided that such Oral Instructions and Written Instructions reasonably appear
to have been given by an Authorized Person. The Fund agrees that all Oral
Instructions shall be followed within one business day by confirming Written
Instructions, and that the Fund's failure to so confirm shall not impair in any
respect PFPC's right to rely on Oral Instructions.
Article 6 COMPENSATION.
6.1 The Fund on behalf of each of the Portfolios will compensate PFPC for
the performance of its obligations hereunder in accordance with the fees set
forth in the written Fee Schedule annexed hereto as Schedule B and incorporated
herein, subject, however, to the performance standards set forth in Appendix I
to this Agreement.
6.2 In addition to those fees set forth in Section 6.1 above, the Fund on
behalf of each of the Portfolios agrees to pay, and will be billed separately
for, out-of-pocket expenses incurred by PFPC in the performance of its duties
hereunder. Out-of-pocket expenses shall include, but shall not be limited to,
the items specified in the written schedule of out-of-pocket charges annexed
hereto as Schedule C and incorporated herein. Unspecified out-of-pocket expenses
shall be limited to those out-of-pocket expenses reasonably incurred by PFPC in
the performance of its obligations hereunder. In the event that the cost of
unspecified out-of-pocket expenses exceeds one thousand dollars ($1,000), PFPC
will receive prior written approval from the Fund before incurring such
expenses.
6.3 The Fund on behalf of each of the Portfolios agrees to pay all fees
and out-of-pocket expenses within thirty (30) days following the receipt of the
respective invoice.
6.4 Any compensation payable to PFPC hereunder pursuant to Schedules B
and C hereof may be adjusted from time to time by attaching hereto a revised
Schedule B or C, as the case may be, executed and dated by the parties hereto.
6.5 The Fund acknowledges that the fees that PFPC charges the Fund under
this Agreement reflect the allocation of risk between the parties, including the
disclaimer of warranties in Section 9.3 and the limitations on liability in
Article 12. Modifying the allocation of risk from what is stated here would
affect the fees that PFPC charges, and in consideration of those fees, the Fund
agrees to the stated allocation of risk.
6.6 In addition to those fees set forth in Section 6.1 above, the Fund
agrees that as part of the compensation payable to PFPC for the performance of
its obligations hereunder, PFPC shall be entitled to retain any interest or
dividend income earned on the investment of the Fund's cash balances held in
those cash management accounts maintained by PFPC on behalf of the Fund. PFPC
agrees to provide the Fund's Board of Trustees with periodic reports, but no
less frequently than annually, as to the amount of such interest or dividend
income retained by PFPC.
6.7 On or about December 31, 2005, PFPC will provide to the Fund's Board
of Trustees information on the transfer agency fees paid by other funds which
are similar in size and type to the Fund, which information shall be obtained
from an independent third-party, such as Lipper Analytical Services. If the fees
paid by the Fund to PFPC are not within industry standards as demonstrated by
such comparison, PFPC and the Fund agree to renegotiate such fees in good faith.
Article 7 DOCUMENTS.
In connection with the appointment of PFPC, the Fund shall, on or before
the date this Agreement goes into effect, but in any case within a reasonable
period of time for PFPC to prepare to perform its duties hereunder, deliver or
cause to be delivered to PFPC the documents set forth in the written schedule of
Fund Documents annexed hereto as Schedule D.
Article 8 TRANSFER AGENT SYSTEM.
8.1 PFPC shall retain title to and ownership of any and all data bases,
computer programs, screen formats, report formats, interactive design
techniques, derivative works, inventions, discoveries, patentable or
copyrightable matters, concepts, expertise, patents, copyrights, trade secrets,
and other related legal rights utilized by PFPC in connection with the services
provided by PFPC to the Fund herein (the "PFPC System").
8.2 PFPC hereby grants to the Fund a limited license to the PFPC System
for the sole and limited purpose of having PFPC provide the services
contemplated hereunder and nothing contained in this Agreement shall be
construed or interpreted otherwise and such license shall immediately terminate
with the termination of this Agreement.
8.3 In the event that the Fund, including any affiliate or agent of the
Fund or any third party acting on behalf of the Fund, is provided with direct
access to the PFPC System for either account inquiry or to transmit transaction
information, including but not limited to maintenance,
exchanges, purchases and redemptions, such direct access capability shall be
limited to direct entry to the PFPC System by means of on-line mainframe
terminal entry or PC emulation of such mainframe terminal entry and any other
non-conforming method of transmission of information to the PFPC System is
strictly prohibited without the prior written consent of PFPC.
Article 9 REPRESENTATIONS AND WARRANTIES.
9.1 PFPC represents and warrants to the Fund that:
(a) it is a corporation duly organized, validly existing and in
good standing under the laws of the Commonwealth of Massachusetts;
(b) it is empowered under applicable laws and by its Articles of
Incorporation and By-Laws to enter into and perform this Agreement;
(c) all requisite corporate proceedings have been taken to
authorize it to enter into this Agreement;
(d) it is duly registered with its appropriate regulatory agency
as a transfer agent and such registration will remain in effect for the
duration of this Agreement; and
(e) it has and will continue to have access to the necessary
facilities, equipment and personnel to perform its duties and obligations
under this Agreement.
9.2 The Fund represents and warrants to PFPC that:
(a) it is duly organized, validly existing and in good standing
under the laws of the jurisdiction in which it is organized;
(b) it is empowered under applicable laws and by its Articles of
Incorporation and By-Laws to enter into this Agreement;
(c) all corporate proceedings required by said Articles of
Incorporation, By-Laws and applicable laws have been taken to authorize
it to enter into this Agreement;
(d) a registration statement under the 1933 Act and the 1940 Act
on behalf of each of the Portfolios is currently effective and will
remain effective, and all appropriate state securities law filings have
been made and will continue to be made, with respect to all Shares of the
Fund being offered for sale; and
(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 Fund's Articles of Incorporation and its Prospectus with
respect to each Portfolio, such Shares shall be validly issued, fully
paid and non-assessable.
9.3 THIS IS A SERVICE AGREEMENT. EXCEPT AS EXPRESSLY PROVIDED IN THIS
AGREEMENT, PFPC DISCLAIMS ALL OTHER REPRESENTATIONS OR WARRANTIES, EXPRESS OR
IMPLIED, MADE TO THE FUND OR ANY OTHER PERSON.
Article 10 INDEMNIFICATION.
10.1 PFPC shall not be responsible for and the Fund on behalf of each
Portfolio shall indemnify and hold PFPC harmless from and against any and all
claims, costs, expenses (including reasonable attorneys' fees), losses, damages,
charges, payments and liabilities of any sort or kind which may be asserted
against PFPC or for which PFPC may be held to be liable (a "Claim") arising out
of or attributable to any of the following unless such Claim resulted from a
negligent act or omission to act or bad faith by PFPC in the performance of its
duties hereunder:
(a) PFPC's reasonable reliance on, or reasonable use of,
information, data, records and documents (including but not limited to
magnetic tapes, computer printouts, hard copies and microfilm copies)
received by PFPC from the Fund, or any authorized third party acting on
behalf of the Fund, including but not limited to the prior transfer agent
for the Fund, in the performance of PFPC's duties and obligations
hereunder;
(b) the reliance on, or the implementation of, any Written or Oral
Instructions or any other instructions or requests of the Fund on behalf
of the applicable Portfolio;
(c) the offer or sale of Shares in violation of any requirement
under the securities laws or regulations of any state that such Shares be
registered in such state or in violation of any stop order or other
determination or ruling by any state with respect to the offer or sale of
such Shares in such state; and
(d) the Fund's refusal or failure to comply with the terms of this
Agreement, or any Claim which arises out of the Fund's negligence or
misconduct or the breach of any representation or warranty of the Fund
made herein.
10.2 In any case in which the Fund may be asked to indemnify or hold PFPC
harmless, PFPC will notify the Fund promptly after identifying any situation
which it believes presents or appears likely to present a claim for
indemnification ("Indemnification Claim") against the Fund although the failure
to do so shall not prevent recovery by PFPC and shall keep the Fund advised with
respect to all developments concerning such Indemnification Claim. The Fund
shall have the option to defend PFPC against any Indemnification Claim which may
be the subject of this indemnification, and, in the event that the Fund so
elects, such defense shall be conducted by counsel chosen by the Fund and
satisfactory to PFPC, and thereupon the Fund shall take over complete defense of
the Indemnification Claim and PFPC shall sustain no further legal or other
expenses in respect of such Indemnification Claim. PFPC will not confess any
Indemnification Claim or make any compromise in any case in which the Fund will
be asked to provide
indemnification, except with the Fund's prior written consent. Subject to
Section 10.3 hereof, the obligations of the parties hereto under this Article 10
shall survive the termination of this Agreement.
10.3 Any Indemnification Claim under this Agreement must be made prior to
the earlier of:
(a) one year after PFPC becomes aware of the event for which
indemnification is claimed; or
(b) one year after the earlier of the termination of this
Agreement or the expiration of the term of this Agreement.
10.4 Except for remedies that cannot be waived as a matter of law (and
injunctive or provisional relief), the provisions of this Article 10 shall be
PFPC's sole and exclusive remedy for claims or other actions or proceedings to
which the Fund's indemnification obligations pursuant to this Article 10 may
apply.
Article 11 STANDARD OF CARE.
11.1 In the performance of its duties hereunder, PFPC shall be obligated
to exercise care and diligence, and to act in good faith and to use its best
efforts within commercially reasonable limits to ensure the accuracy of all
services performed under this Agreement, but assumes no responsibility for loss
or damage to the Fund unless said loss or damages are caused by PFPC's own
negligence, bad faith or willful misconduct or that of its employees, agents or
representatives.
11.2 Each party shall have the duty to mitigate damages for which the
other party may become responsible.
Article 12 CONSEQUENTIAL DAMAGES.
NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, IN NO EVENT
SHALL EITHER PARTY, ITS AFFILIATES OR ANY OF ITS OR THEIR DIRECTORS, TRUSTEES,
OFFICERS, EMPLOYEES, AGENTS OR SUBCONTRACTORS BE LIABLE TO THE OTHER PARTY FOR
CONSEQUENTIAL DAMAGES.
Article 13 TERM AND TERMINATION.
13.1 This Agreement shall continue in effect until December 31, 2007 (the
"Initial Term").
13.2 Upon the expiration of the Initial Term, this Agreement shall
continue automatically for successive terms of one (1) year ("Renewal Terms")
each, unless the Fund or PFPC provides
written notice to the other of its intent not to renew. Such notice must be
received not less than sixty (60) days prior to the expiration of the Initial
Term or the then current Renewal Term.
13.3 The Fund may terminate this Agreement in the event that the
negligent action or negligent omission to act on the part of PFPC causes damages
to the Fund or its shareholders in excess of two hundred fifty thousand dollars
($250,000). "Damages to the Fund" are defined as damages caused by a single
event, or cumulative series of events related to the same matter, which
generates a monetary loss. The Fund's right to terminate under this Section 13.3
shall remain effective in the event PFPC has made the Fund whole with respect to
the damages caused. Unless the Fund provides PFPC with written notice of the
Fund's intent to exercise its option under this Section 13.3 within 30 days
after the Fund becomes aware of the occurrence, the Fund shall have waived its
option to terminate under this provision.
13.4 If a party hereto is guilty of a material failure to perform its
duties and obligations hereunder (a "Defaulting Party"), the other party (the
"Non-Defaulting Party") may give written notice thereof to the Defaulting Party,
and if such material breach shall not have been remedied within thirty (30) days
after such written notice is given, then the Non-Defaulting Party may terminate
this Agreement by giving thirty (30) days written notice of such termination to
the Defaulting Party. If PFPC is the Non-Defaulting Party, its termination of
this Agreement shall not constitute a waiver of any other rights or remedies of
PFPC with respect to services performed prior to such termination or rights of
PFPC to be reimbursed for out-of-pocket expenses. In all cases, termination by
the Non-Defaulting Party shall not constitute a waiver by the Non-Defaulting
Party of any other rights it might have under this Agreement or otherwise
against the Defaulting Party.
13.5 The Fund shall have the right to terminate this Agreement at any
time with respect to the Fund or a particular Portfolio if the Fund or the
Portfolio, as the case may be, reorganizes into another entity, liquidates or
otherwise ceases to exist. In the event the Fund terminates the Agreement
pursuant to this Section 13.5, the Fund shall reimburse PFPC for all reasonable
costs associated with such termination.
13.6 In the event that PFPC fails to be registered as a transfer agent
with the appropriate federal agency at any time during the term of this
Agreement, the Fund may, upon written notice to PFPC, immediately terminate this
Agreement.
13.7 In the event this Agreement is terminated by the Fund pursuant to
Sections 13.5 or 13.6 hereof or pursuant to paragraph (d) of the Performance
Standards set forth in Appendix I hereto, all reasonable expenses associated
with movement of records and materials and conversion thereof to a successor
transfer agent will be borne by PFPC and the Fund shall not be responsible for
PFPC's costs associated with such termination. In the event of termination of
this Agreement pursuant to any other Sections of this Agreement, all reasonable
expenses associated with conversion will be borne by the Fund.
Article 14 ADDITIONAL PORTFOLIOS
14.1 In the event that the Fund establishes one or more Portfolios in
addition to those identified in Exhibit 1 with respect to which the Fund desires
to have PFPC render services as transfer agent under the terms hereof, the Fund
shall so notify PFPC in writing, and if PFPC agrees in writing to provide such
services, Exhibit 1 shall be amended to include such additional Portfolios.
Article 15 CONFIDENTIALITY.
15.1 The parties agree that the Proprietary Information (defined below)
and the contents of this Agreement (collectively "Confidential Information") are
confidential information of the parties and their respective licensors. The Fund
and PFPC shall exercise at least the same degree of care, but not less than
reasonable care, to safeguard the confidentiality of the Confidential
Information of the other as it would exercise to protect its own Confidential
Information. The Fund and PFPC may use the Confidential Information only to
exercise their respective rights or perform their respective duties under this
Agreement. Except as required by law and except as disclosed in the Fund's
registration statement or filed as an exhibit thereto, the Fund and PFPC shall
not duplicate, sell or disclose to others the Confidential Information of the
other, in whole or in part, without the prior written permission of the other
party. The Fund and PFPC may, however, disclose Confidential Information to
their respective employees who have a need to know the Confidential Information
to perform work for the other, provided that the Fund and PFPC shall use
reasonable efforts to ensure that the Confidential Information is not duplicated
or disclosed by their respective employees in breach of this Agreement. The Fund
and PFPC may also disclose the Confidential Information to independent
contractors, auditors, and professional advisors, provided they first agree in
writing to be bound by confidentiality obligations substantially similar to this
Section 15.1. Notwithstanding the previous sentence, in no event shall either
the Fund or PFPC disclose the Confidential Information to any competitor of the
other without specific, prior written consent.
15.2 Proprietary Information means:
(a) any data or information that is competitively sensitive
material, and not generally known to the public, including, but not
limited to, information about product plans, marketing strategies,
finance, operations, customer relationships, customer profiles, sales
estimates, business plans, and internal performance results relating to
the past, present or future business activities of the Fund or PFPC,
their respective subsidiaries and affiliated companies and the customers,
clients and suppliers of any of them;
(b) any scientific or technical information, design, process,
procedure, formula, or improvement that is commercially valuable and
secret in the sense that its confidentiality affords the Fund or PFPC a
competitive advantage over its competitors; and
(c) all confidential or proprietary concepts, documentation,
reports, data, specifications, computer software, source code, object
code, flow charts, databases, inventions, know-how, show-how and trade
secrets, whether or not patentable or copyrightable.
15.3 Confidential Information includes, without limitation, all
documents, inventions, substances, engineering and laboratory notebooks,
drawings, diagrams, specifications, bills of material, equipment, prototypes and
models, and any other tangible manifestation of the foregoing of either party
which now exist or come into the control or possession of the other.
Article 16 FORCE MAJEURE.
16.1 No party shall be liable for any default or delay in the performance
of its obligations under this Agreement if and to the extent such default or
delay is caused, directly or indirectly, by circumstances beyond such party's
reasonable control. In any such event, the non-performing party shall be excused
from any further performance and observance of the obligations so affected only
for as long as such circumstances prevail and such party continues to use
commercially reasonable efforts to recommence performance or observance as soon
as practicable.
16.2 Notwithstanding Section 16.1, in the event of equipment failures
beyond PFPC's control, PFPC shall, at no additional expense to the Fund, take
reasonable steps to minimize service interruptions but shall have no liability
with respect thereto. PFPC shall enter into and maintain in effect with
appropriate parties one or more agreements making reasonable provision for
emergency use of electronic data processing equipment to the extent appropriate
equipment is available.
Article 17 ASSIGNMENT AND SUBCONTRACTING.
This Agreement, its benefits and obligations shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
permitted assigns. This Agreement may not be assigned or otherwise transferred
by either party hereto, without the prior written consent of the other party,
which consent shall not be unreasonably withheld; provided, however, that PFPC
may, in its sole discretion, assign all its right, title and interest in this
Agreement to an affiliate, parent or subsidiary, provided that, in the
reasonable judgment of the Board of Trustees of the Fund acting in its sole
discretion: (i) the financial capacity of such assignee is not materially less
than that of PFPC; (ii) the nature and quality of the services to be provided
hereunder, including the Performance Standards set forth in Appendix I, are not
materially adversely affected by such assignment; and (iii) the quality and
capability of the personnel and facilities of the assignee are not materially
less than those of PFPC. PFPC may, in its sole discretion, engage subcontractors
to perform any non-material or non-substantive obligations contained in this
Agreement that it is otherwise required to perform hereunder, provided that PFPC
shall be responsible for all compensation payable to such subcontractors and
shall remain responsible for the acts and omissions of such subcontractors to
the same extent that it is hereunder.
Article 18 NOTICE.
Any notice or other instrument authorized or required by this Agreement
to be given in writing to the Fund or PFPC, shall be sufficiently given if
addressed to that party and received by it at its office set forth below or at
such other place as it may from time to time designate in writing.
To the Fund:
Xxxxxx X. Xxxxxxx, Vice President
The Galaxy Fund
C/o Columbia Management Group, Inc.
000 Xxxxxx Xxxxxx
Xxxxxx, Xxxxxxxxxxxxx 00000
with a copy to:
W. Xxxxx XxXxxxxx, III, Esq.
Drinker Xxxxxx & Xxxxx LLP
One Xxxxx Square
00xx xxx Xxxxxx Xxxxxxx
Xxxxxxxxxxxx, Xxxxxxxxxxxx 00000
To PFPC:
PFPC Inc.
000 Xxxxxxxx Xxxxxx
Xxxxxxxxxx, Xxxxxxxx 00000
Attention: President
with a copy to PFPC's General Counsel
Article 19 GOVERNING LAW/VENUE.
The laws of the Commonwealth of Massachusetts, excluding the laws on
conflicts of laws, shall govern the interpretation, validity, and enforcement of
this Agreement. All actions arising from or related to this Agreement shall be
brought in the state and federal courts sitting in the City of Boston, and PFPC
and the Fund hereby submit themselves to the exclusive jurisdiction of those
courts.
Article 20 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.
Article 21 CAPTIONS.
The captions of this 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.
Article 22 PUBLICITY.
Neither PFPC nor the Fund shall release or publish news releases, public
announcements, advertising or other publicity relating to this Agreement or to
the transactions contemplated by it without the prior review and written
approval of the other party; provided, however, that either party may make such
disclosures as are required by legal, accounting or regulatory requirements
after making reasonable efforts in the circumstances to consult in advance with
the other party.
Article 23 RELATIONSHIP OF PARTIES.
The parties agree that they are independent contractors and not partners
or co-venturers and nothing contained herein shall be interpreted or construed
otherwise.
Article 24 COOPERATION WITH ACCOUNTANTS
PFPC shall cooperate with the Fund's independent certified public
accountants and shall take all reasonable action in the performance of its
obligations under this Agreement to assure that the necessary information is
made available to such accountants for the expression of their opinion as such
may be required from time to time by the Fund.
Article 25 ENTIRE AGREEMENT; SEVERABILITY; RELEASE.
25.1 This Agreement, including the Schedules, Addenda, and Exhibits
hereto, constitutes the entire Agreement between the parties with respect to the
subject matter hereof and supersedes all prior and contemporaneous proposals,
agreements, contracts, representations, and understandings, whether written or
oral, between the parties with respect to the subject matter hereof. No change,
termination, modification, or waiver of any term or condition of the Agreement
shall be valid unless in writing signed by each party. No such writing shall be
effective as against the Fund unless said writing is executed by the President
or a Vice President of the Fund. No such writing shall be effective as against
PFPC unless said writing is executed by a Senior Vice President, Executive Vice
President, or President of PFPC. A party's waiver of a breach of any term or
condition in the Agreement shall not be deemed a waiver of any subsequent breach
of the same or another term or condition.
25.2 The parties intend every provision of this Agreement to be
severable. If a court of competent jurisdiction determines that any term or
provision is illegal or invalid for any reason, the illegality or invalidity
shall not affect the validity of the remainder of this Agreement. In such case,
the parties shall in good faith modify or substitute such provision consistent
with the original intent of the parties. Without limiting the generality of this
paragraph, if a court determines that any remedy stated in this Agreement has
failed of its essential purpose, then all other provisions of this Agreement,
including the limitations on liability and exclusion of damages, shall remain
fully effective.
25.3 The names "The Galaxy Fund" and "Trustees of The Galaxy Fund" refer
respectively to the Trust created and the Trustees, as trustees but not
individually or personally, acting from time to time under a Declaration of
Trust dated March 31, 1986 which is hereby referred to and a copy of which is on
file at the office of the State Secretary of the Commonwealth of Massachusetts
and at the principal office of the Fund. The obligations of "The Galaxy Fund"
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 Fund personally, but bind only
the Trust Property, and all persons dealing with any class of Shares of the Fund
must look solely to the Trust Property belonging to such class for the
enforcement of any claims against the Fund.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized officers, as of the day and year first above
written.
THE GALAXY FUND
By: /s/ Xxxx Xxxxxx
-------------------------------------
Title: Vice President
----------------------------------
PFPC INC.
By: /s/ signature illegible
-------------------------------------
Title: Senior Vice President
----------------------------------
Exhibit 1
LIST OF PORTFOLIOS
Money Market Fund
Government Money Market Fund
Tax-Exempt Money Market Fund
U.S. Treasury Money Market Fund
Institutional Government Money Market Fund
Connecticut Municipal Money Market Fund
Massachusetts Municipal Money Market Fund
Institutional Money Market Fund
Institutional Treasury Money Market Fund
Prime Reserves
Government Reserves
Tax-Exempt Reserves
Florida Municipal Money Market Fund
New Jersey Municipal Money Market Fund
New York Municipal Money Market Fund
Institutional Prime Money Market Fund
Schedule A
DUTIES OF PFPC
1. SHAREHOLDER INFORMATION. (a) PFPC shall maintain a record of the
number of Shares held by each Shareholder of record which shall include name,
address, taxpayer identification number and which shall indicate whether such
Shares are held in certificated or uncertificated form and shall include
historical information regarding the account of each Shareholder, including
dividends and distributions paid and the date and price for all transactions in
a Shareholder's account; any stop or restraining order placed against a
Shareholder's account; information with respect to withholdings; any information
required for PFPC to perform any calculations contemplated or required by the
Agreement to which this is a Schedule (the "Agreement"). PFPC shall keep a
record of all redemption checks and dividend checks returned by the postal
authorities, and shall maintain such records as are required by law.
(b) PFPC shall keep subaccounts for each Shareholder requesting such
service in connection with Shares held by such Shareholder for separate
accounts, containing the same information for each subaccount as required by
subparagraph (a) above.
2. SHAREHOLDER SERVICES. PFPC shall respond as appropriate to all
inquiries and communications from Shareholders, securities brokers and others
relating to Shareholder accounts with respect to its duties hereunder and such
other information and communications as may be from time to time mutually agreed
upon in writing by PFPC and the Fund.
3. SHARE CERTIFICATES.
(a) At the expense of the Fund, the Fund shall supply PFPC with an
adequate supply of blank share certificates to meet PFPC requirements therefor.
Such Share certificates shall be properly signed by facsimile. The Fund agrees
that, notwithstanding the death, resignation, or removal of any officer of the
Fund whose signature appears on such certificates, PFPC or its agent may
continue to countersign certificates which bear such signatures until otherwise
directed by Written Instructions.
(b) PFPC shall issue replacement Share certificates in lieu of
certificates which have been lost, stolen or destroyed, upon receipt by PFPC of
properly executed affidavits and lost certificate bonds, in form satisfactory to
PFPC, with the Fund and PFPC named as obligees under the bond.
(c) PFPC shall also maintain a record of each certificate issued,
the number of Shares represented thereby and the Shareholder of record. With
respect to Shares held in open accounts or uncertificated form (i.e., no
certificate being issued with respect thereto), PFPC shall maintain comparable
records of the Shareholders thereof, including their names, addresses and
taxpayer identification numbers. PFPC shall further maintain a stop transfer
record on lost and/or replaced certificates.
4. MAILING COMMUNICATIONS TO SHAREHOLDERS; PROXY MATERIALS. PFPC will
address and mail all communications by the Fund to Shareholders or their
authorized representatives, including reports to Shareholders, dividend and
distribution notices and proxy materials for the Fund's meetings of
Shareholders. In connection with meetings of Shareholders, PFPC will prepare
Shareholder lists, mail and certify as to the mailing of proxy materials,
process and tabulate returned proxy cards, report on proxies voted prior to
meetings, act as inspector of election at meetings and certify Shares voted at
meetings.
5. SALES OF SHARES.
(a) PFPC shall not be required to issue any Shares of the Fund
where it has received Written Instructions from the Fund or official notice from
any appropriate authority that the sale of the Shares of the Fund has been
suspended or discontinued. The existence of such Written Instructions or such
official notice shall be conclusive evidence of the right of PFPC to rely on
such Written Instructions or official notice.
(b) In the event that any check or other order for the payment of
money is returned unpaid for any reason, PFPC will endeavor to: (i) give prompt
notice of such return to the Fund or its designee; (ii) place a stop transfer
order against all Shares issued as a result of such check or order; and (iii)
take such actions as PFPC may from time to time deem appropriate.
6. TRANSFER AND REPURCHASE.
(a) PFPC shall process all requests to transfer or redeem Shares
in accordance with the transfer or repurchase procedures set forth in the Fund's
Prospectus.
(b) PFPC will transfer or repurchase Shares upon receipt of Oral
or Written Instructions or otherwise pursuant to the Prospectus and Share
certificates, if any, properly endorsed for transfer or redemption, accompanied
by such documents as PFPC reasonably may deem necessary.
(c) PFPC reserves the right to refuse to transfer or repurchase
Shares until it is satisfied that the endorsement on the instructions is valid
and genuine. PFPC also reserves the right to refuse to transfer or repurchase
Shares until it is satisfied that the requested transfer or repurchase is
legally authorized, and it shall incur no liability for the refusal, in good
faith, to make transfers or repurchases which PFPC, in its good judgment, deems
improper or unauthorized, or until it is reasonably satisfied that there is no
basis to any claims adverse to such transfer or repurchase.
(d) When Shares are redeemed, PFPC shall, upon receipt of the
instructions and documents in proper form, deliver to the Custodian and the Fund
or its designee a notification setting forth the number of Shares to be
repurchased. Such repurchased shares shall be reflected
on appropriate accounts maintained by PFPC reflecting outstanding Shares of the
Fund and Shares attributed to individual accounts.
(e) PFPC, upon receipt of the monies provided to it by the
Custodian for the repurchase of Shares, shall disburse the redemption proceeds
to the person entitled to such proceeds, in accordance with the procedures and
controls as are mutually agreed to in writing from time to time by the Fund,
PFPC and the Custodian.
(f) PFPC shall not process or effect any repurchase with respect
to Shares of the Fund after receipt by PFPC or its agent of notification of the
suspension of the determination of the net asset value of the Fund.
7. DIVIDENDS
(a) Upon the declaration of each dividend and each capital gains
distribution by the Board of Directors of the Fund with respect to Shares of the
Fund, the Fund shall furnish or cause to be furnished to PFPC Written
Instructions setting forth the date of the declaration of such dividend or
distribution, the ex-dividend date, the date of payment thereof, the record date
as of which Shareholders entitled to payment shall be determined, the amount
payable per Share to the Shareholders of record as of that date, the total
amount payable on the payment date and whether such dividend or distribution is
to be paid in Shares at net asset value.
(b) On or before the payment date specified in such resolution of
the Board of Directors, the Fund will provide PFPC with sufficient cash to make
payment on the payment date to the Shareholders as of the record date.
(c) If PFPC does not receive sufficient cash from the Fund to make
total dividend and/or distribution payments on the date of payment to all
Shareholders of the Fund as of the record date, PFPC will notify the Fund. The
Fund hereby instructs PFPC to process dividend and/or distribution payments to
all Shareholders as of the record date regardless of whether sufficient cash is
available on the payment date. Subject to PFPC meeting the standard of care set
forth in Article 11 hereof, the Fund shall be responsible for and shall
indemnify and hold PFPC harmless from all claims asserted by others with respect
to the actions of PFPC in complying with the foregoing sentence.
(d) PFPC shall prepare and file with the internal Revenue Service
and/or other appropriate taxing authorities, and address and mail to
Shareholders or their authorized representatives, such returns and information
relating to dividends and distributions paid by the Fund as are required to be
so prepared, filed and mailed by applicable laws, rules and regulations, or such
substitute form of notice as may from time to time be permitted or required by
the Internal Revenue Service and/or other appropriate taxing authorities. On
behalf of the Fund, PFPC shall pay on a timely basis to the appropriate federal
authorities any taxes required by applicable federal tax laws to be withheld by
the Fund on dividends and distributions paid by the Fund.
8. ONGOING FUNCTIONS. PFPC will perform the following functions on an
ongoing basis for each class or series of Shares of the Fund:
(a) furnish state-by-state registration reports to the Fund;
(b) calculate front-end sales charges, if any, payable in
connection with the purchase of Retail A Shares and provide for the payment of
all such sales charges to the Fund's distributor (subject to the applicable
limitations of the National Association of Securities Dealers, Inc. on
asset-based sales charges);
(c) calculate dealer commissions for the Fund, as applicable, if
any;
(d) provide toll-free lines for direct Shareholder use, plus
customer liaison staff with on-line inquiry capacity;
(e) mail duplicate confirmations to dealers of their clients'
activity, whether executed through the dealer or directly with PFPC, if any;
(f) provide detail for underwriter or broker confirmations and
other participating dealer Shareholder accounting, in accordance with such
procedures as may be agreed upon from time to time by the Fund and PFPC;
(g) provide Shareholder lists and statistical information
concerning accounts to the Funds; and
(h) provide timely notification of Fund activity, and such other
information as may be agreed upon from time to time by PFPC and the Custodian,
to the Fund or the Custodian.
9. In addition to and neither in lieu nor in contravention of the
services set forth above, PFPC shall: (i) perform all the customary services of
a transfer agent, registrar, dividend disbursing agent and agent of the dividend
reinvestment and cash purchase plan as described herein consistent with those
requirements in effect as at the date of this Agreement. The detailed
definition, frequency, limitations and associated costs (if any) set out in the
attached fee schedule, include but are not limited to: maintaining all
Shareholder accounts, preparing Shareholder meeting lists, mailing proxies,
tabulating proxies, mailing Shareholder reports to current Shareholders,
withholding taxes on U.S. resident and non-resident alien accounts where
applicable, preparing and filing U.S. Treasury Department Forms 1099 and other
appropriate forms required with respect to dividends and distributions by
federal authorities for all Shareholders.
10. PFPC shall provide at no cost to the Fund a two-person dedicated
programming team to focus exclusively on Fund systems priorities as identified
by Columbia Management Group, Inc.
Schedule B
FEE SCHEDULE
For the services to be rendered, the facilities to be furnished and the
payments to be made by PFPC, as provided for in this Agreement, the Fund, on
behalf of each Portfolio, will pay PFPC on the first business day of each month
a fee for the previous month at the rates listed below. 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.
SHAREHOLDER SERVICES
ANNUAL FUND MINIMUM
Fees are based on annual per shareholder account charge for account maintenance
and fees for certain shareholder generated transactions plus all out-of-pocket
expenses. There is a minimum annual fee per Portfolio of $5,000 per year.
ANNUAL MAINTENANCE FEE
Fees are billed on a monthly basis at the rate of 1/12 of the annual fee. A
charge is made for an account in the month that an account opens or closes. The
Annual Maintenance Fee is as follows:
TYPE OF ACCOUNT ANNUAL MAINTENANCE FEE
--------------- ----------------------
Open Accounts
Non-Networked Accounts $14.00
Networked Accounts
0-100,000 $11.00
over 100,000 $ 8.00
Closed Accounts
0-100,000 $14.00
over 100,000 $11.00
NEW ACCOUNT SET-UP CHARGE
$5.00 per account
FEE WAIVERS FOR NEW PORTFOLIOS
PFPC shall waive all fees for a period of three months from the commencement of
operations of any new Portfolio which is established, provided that no fee shall
be waived for any "shell" Portfolio created pursuant to a merger or acquisition.
PRODUCTION AND MASS MAIL
The per piece fees for production and mass mail exclude postage which will be
invoiced as an out-of-pocket expense at cost.
DAILY, MONTHLY AND DIVIDEND STATEMENTS
Printing, folding, inserting, metering and mailing
(includes return envelope inserting) $.075/ea
Additional Inserts
1st .002/ea
2nd .005/ea
3rd .010/ea
4th .010/ea
5th .010/ea
FIDUCIARY FEE STATEMENTS
Printing, inserting, metering, mailing and
return envelope inserting $ .11/ea
W-8 STATEMENTS
Printing, folding, inserting, metering, mailing,
mailer or return envelope inserting $ .155/ea
W-8 STATEMENTS (BULK)
Printing, folding, inserting, metering, mailing,
mailer or return envelope inserting $1.305/ea
Credit for return handling and processing .70/ea
Additional inserts
1st .002/ea
2nd .005/ea
3rd .010/ea
4th .010/ea
5th .010/ea
W-9 STATEMENTS
Printing, folding, inserting, metering, mailing
and mailer or return envelope inserting $ .155/ea
W-9 SOLICITATIONS (BULK)
Solicitation printing, folding, inserting, metering,
mailing and mailer or return envelope inserting $ .905/ea
Credit for return handling and processing .50/ea
Additional inserts
1st .002/ea
2nd .005/ea
3rd .010/ea
4th .010/ea
5th .010/ea
LASER CHECKS
Printing, folding, inserting, metering and mailing
(includes return envelope inserting) $ .085/ea
Additional inserts
1st .002/ea
2nd .005/ea
3rd .010/ea
4th .010/ea
5th .010/ea
PROXIES
Proxy Base Stock $.0238/ea
Printing plate charge 25.00/side
Copy setting fees 50.00/ea
Proxy printing
1 to 9,999 .15/ea
10,000 to 49,999 .05/ea
50,000 plus .025/ea
Inserting, bursting, metering and mailing
over 3,501 pieces .0105/ea
2,501 to 3,500 .12/ea
1,501 to 2,500 .15/ea
1 to 1,500 .17/ea
Additional inserts
1st .002/ea
2nd .005/ea
3rd .010/ea
4th .010/ea
5th .010/ea
Manual processing/counting $13.00/hr
NEW ACCOUNT LETTERS
Printing, folding, inserting, metering $ .070/pg
Additional inserts
1st .002/ea
2nd .005/ea
3rd .010/ea
4th .010/ea
5th .010/ea
Schedule C
OUT-OF-POCKET EXPENSES
The Fund shall reimburse PFPC monthly for applicable out-of-pocket
expenses, including, but not limited to the following items:
- Microfiche/microfilm production
- Magnetic media tapes and freight
- Printing costs, including certificates, envelopes, checks and
stationery
- Postage (bulk, pre-sort, ZIP+4, barcoding, first class) direct pass
through to the Fund
- Due diligence mailings
- Telephone and telecommunication costs, including all lease, maintenance
and line costs
- Ad hoc reports
- Proxy solicitations, mailings and tabulations
- Daily & Distribution advice mailings
- Shipping, Certified and Overnight mail and insurance
- Year-end forms and mailings
- Terminals, communication lines, printers and other equipment and any
expenses incurred in connection with such terminals and lines
- Duplicating services
- Courier services
- Incoming and outgoing wire charges
- Federal Reserve charges for check clearance
- Overtime, as approved in advance by the Fund
- Temporary staff, as approved in advance by the Fund
- Travel and entertainment, as approved in advance by the Fund
- Record retention as required by the Fund, retrieval and destruction
costs, including, but not limited to exit fees charged by third party
record keeping vendors
- Third party audit reviews
- Ad hoc SQL time
- Insurance
- Such other miscellaneous expenses reasonably incurred by PFPC in
performing its duties and responsibilities under this Agreement.
The Fund agrees that postage and mailing expenses will be paid on the day
of or prior to mailing as agreed with PFPC. In addition, the Fund will promptly
reimburse PFPC for any other unscheduled expenses incurred by PFPC whenever the
Fund and PFPC mutually agree that such expenses are not otherwise properly borne
by PFPC as part of its duties and obligations under the Agreement.
1
Schedule D
FUND DOCUMENTS
- Certified copy of the Articles of Incorporation of the Fund, as amended
- Certified copy of the By-laws of the Fund, as amended,
- Copy of the resolutions of the Board of Directors authorizing the
execution and delivery of this Agreement
- Specimens of the certificates for Shares of the Fund, if applicable, in
the form approved by the Board of Directors of the Fund, with a
certificate of the Secretary of the Fund as to such approval
- All account application forms and other documents relating to
Shareholder accounts or to any plan, program or service offered by the
Fund
- All notices issued by the Fund with respect to the Shares in accordance
with and pursuant to the Articles of Incorporation or By-Laws of the
Fund or as required by law.
Appendix I
Pursuant to Article 2 of this Agreement, PFPC has agreed to perform the
services described in this Agreement in accordance with the Performance
Standards set forth in this Appendix I. The parties agree that such Performance
Standards, which are described below, may be revised from time to time upon the
mutual agreement of the parties.
Each of the performance standards will be monitored by a Quality
Assurance Team:
(a) In the event that PFPC fails to meet a particular Performance
Standard (except any failure due to circumstances beyond its control) in any
particular month, PFPC agrees to take appropriate corrective action within the
following thirty (30) day period.
(b) In the event that PFPC fails to meet a particular Performance
Standard (except for any failure due to circumstances beyond its control) in two
(2) consecutive months, the fee payable to PFPC hereunder for such service shall
be reduced by one percent (1%) for the second of those two months.
(c) In the event that PFPC fails to meet a particular Performance
Standard (except for any failure due to circumstances beyond its control) for
any three (3) consecutive months, the fee payable to PFPC hereunder for such
service shall be reduced by one and one-half percent (1.5%) for the third of
those three months.
(d) In the event that PFPC fails to meet a particular Performance
Standard (except for any failure due to circumstances beyond its control) for
any three (3) months within a six (6) month period, the Fund shall have the
right to terminate this Agreement upon forty-five (45) days' written notice to
PFPC.
(e) In the event that there is no specific fee for a particular service
set forth in Schedule A hereto, then any reduction in the fee payable to PFPC as
a result of a failure to meet a particular performance standard for that service
hereunder shall be taken as a reduction in the annual per account maintenance
fee.
(f) The Performance Standards shall be as follows:
REQUIRED
PERFORMANCE
CATEGORY COMPONENTS LEVEL
QUALITY PERFORMANCE SCORE (Accuracy rating based on routine sampling and
accuracy analysis by Quality Assurance Area of PFPC)
1. Financials Purchases, Redemptions, Exchanges, 98%
Adjustments (both financial and non-financial
adjustments)
2. Non-Financials Maintenance (including address changes, 98%
option changes, ROA/LOI), Legal Transfers,
New Accounts
3. Print / Mail Statements, Confirms, Checks 98%
4. Correspondence Financial and Non-Financial Correspondence 98%
PRODUCTIVITY PERFORMANCE SCORE
1. Completed on day of receipt Purchases, Redemptions, Exchanges, Financial 98%
Adjustments, New Accounts
2. Completed within five Maintenance, Non-Financial, Legal Transfers 98%
business days of receipt
Print / Mail:
3. Mailed on trade date + 1 Shareholder Checks 98%
4. Mailed on trade date + 2 Shareholder Confirms 98%
5. Mailed within 5 business Statements 98%
days following the end of the
reporting period
Shareholder Services:
6. Mailed within two business Financial Correspondence 98%
days of receipt
7. Mailed within four business Non-Financial Correspondence 98%
days of receipt
Phones:
8. Abandonment Rate 3% or less
9. Average Speed of Answer 20 seconds or less
10. Service Level of Receipt 90% of all calls
answered in 20
seconds or less
