FORM OF FUND ACCOUNTING AND ADMINISTRATION SERVICE AGREEMENT
Exhibit (h)(1)
FORM OF FUND ACCOUNTING AND ADMINISTRATION
SERVICE AGREEMENT
between
and
THIS AGREEMENT is made and
entered into as of this 3rd day of August 2021, by and between VOLT ETF TRUST, a Delaware statutory trust, having its principal office and place of business at 000 Xxxxx
Xxxxxxxx Xxxxxx, Xxxxx Xxxxx, Xxxxx Xxxxxxxx 00000 (the “Trust”) and THE NOTTINGHAM COMPANY, a North Carolina corporation, having its principal office and place of business at 000 Xxxxx Xxxxxxxx Xxxxxx, Xxxxx
Xxxxx, Xxxxx Xxxxxxxx 00000 (the “Administrator”).
WHEREAS, the Trust is an open-end management investment company
registered with the United States Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended (“1940 Act”); and
WHEREAS, the Trust is authorized to issue shares of beneficial
interest in separate series, with each such series representing interests in a separate portfolio of securities and other assets; and
WHEREAS, the Trust offers shares in the series listed in Appendix A
hereof (each such series, together with all other series subsequently established by the Trust and made subject to this Agreement, being herein referred to as a “Fund,” and collectively as the “Funds”); and
WHEREAS, the Administrator is in the business of providing fund
accounting and administration services for the benefit of its customers; and
WHEREAS, the Trust desires to retain the Administrator to provide
such fund accounting and administration services to each series of the Trust listed in Appendix A hereof (and as periodically amended); and
WHEREAS, the Administrator is willing to provide such fund
accounting and administration services on the terms and conditions set forth in this agreement;
NOW THEREFORE, in consideration of the premises and mutual
covenants contained herein, the Trust and the Administrator hereby agree as follows:
1. APPOINTMENT OF THE ADMINISTRATOR
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(a)
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The Trust, on behalf of each Fund listed in Appendix A, hereby retains the Administrator to provide the accounting and administrative services
enumerated in Appendix B hereof, for the period and on the terms set forth in this Agreement.
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(b)
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The Administrator hereby agrees to be retained and to furnish the services enumerated in Appendix B, for the period and on the terms set forth in
this Agreement, in return for the compensation as provided in Section 4 of this Agreement.
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2.
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SERVICES AND DUTIES OF THE ADMINISTRATOR
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(a)
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With respect to each Fund, the Administrator shall provide, or cause to be provided, the accounting and administrative duties as set forth in
Appendix B. The Administrator shall exercise reasonable customary care in the performance of its duties under this Agreement.
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(b)
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The Administrator may from time to time adopt procedures, or modify its procedures, to implement the terms of this Agreement. However, at all times
the Administrator will perform its services and duties in compliance with, and according to, the policies and direction of the Trust’s Board of Trustees.
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(c)
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The parties hereby mutually agree that the services and duties of the Administrator shall be confined to those matters expressly set forth in
Appendix B or otherwise herein, and no implied duties are assumed by or may be asserted against the Administrator.
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3.
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BOOKS AND RECORDS
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(a)
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Record Maintenance. The Administrator shall maintain customary books and
records in connection with its duties as specified in this Agreement. Any such books or records required to be maintained and preserved pursuant to Rules 31a-1 and 31a-2 under the Investment Company Act of 1940 that are prepared and
maintained by the Administrator on behalf of the Trust shall be the property of the Trust and will be made available to or surrendered promptly to the Trust on request. Notwithstanding the foregoing, the Administrator shall be entitled to
keep copies of any books or records that the Administrator may be required to retain by law or regulation.
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Unless otherwise agreed upon by the Administrator and the Trust, the Administrator may subcontract to a
third party the storage and maintenance of the Trust’s books and records and such costs and expenses shall be the responsibility of the Trust.
In case of any request or demand for the inspection of such records by another party, the Administrator
will notify the Trust and follow the Trust’s instructions as to permitting or refusing such inspection; provided that the Administrator may exhibit such records as provided in Section 14 of this Agreement and to any person in any case where it is
advised by its counsel that it may be held liable for failing to do so, unless (in cases involving potential exposure only to civil liability) the Trust has agreed to indemnify the Administrator against such liability.
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(b)
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Delivery of Documents. The Trust shall provide the Administrator with the
necessary documents, records, and other information in its possession or control to enable the Administrator to perform its duties and obligations under this Agreement, including, but not limited to, a copy of the Trust documents and any
amendments thereto.
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(c)
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Converting to Administrator’s System. The Trust agrees to cooperate with the Administrator in
converting to the Administrator’s data processing system and software (“Administrator’s System”) to the extent necessary for Administrator to perform the Administrator’s duties under this Agreement. Notwithstanding anything to the contrary
in this Agreement, the Trust acknowledges and agrees that all computer programs and procedures developed by or for the Administrator to perform its duties and services under this Agreement, including, but not limited to, the Administrator’s
Systems, are and shall remain the sole property of the Administrator.
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4.
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FEES, EXPENSES AND OTHER COMPENSATION
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(a)
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Fees. In exchange for the services provided by the Administrator pursuant
to Appendix B or otherwise herein, the Trust hereby agrees to pay, or cause to be paid, to the Administrator fees as specified in the Fund specific Appendices hereof. The Administrator will be entitled to additional compensation for any
special projects or services requested by the Trust outside the scope of Appendix B or otherwise herein.
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Asset-based compensation will be calculated and accrued daily and paid to the Administrator monthly. For
flat fees, partial months will be prorated. Where applicable, the fee shall be calculated based upon the average daily net assets of each Fund. For this purpose, the average daily net assets shall be computed in the manner described in the Trust’s
Declaration of Trust or the Trust’s Prospectus or Statement of Additional Information for that Fund.
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(b)
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Special Projects. The Trust may, from time to time, request that the Administrator perform
additional tasks above and beyond the general scope of its responsibilities under Appendix B herein. The Trust hereby agrees to pay, or cause to be paid, to the Administrator special project fees as specific in Schedule 1 hereof.
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(c)
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Expenses. The Trust hereby assumes and will pay, or cause to be paid, all
expenses of the Trust and the Fund(s) pursuant to Schedule 2 hereof and will allocate the Fund(s)’ portion of such expenses to the Fund(s) for direct payment.
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(d)
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Reimbursement. The Trust will promptly reimburse the Administrator for its reasonable expenses in connection with the Trust’s and the Fund(s)’ activities including, but not limited to:
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(i)
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costs of telephone services (but not telephone equipment) including, but not limited to, long distance telephone and wire charges;
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(ii)
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postage and delivery costs;
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(iii)
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costs to print special forms and stationery;
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(iv)
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copying charges;
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(v)
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costs of financial publications (if any) or professional memberships (e.g. ICI membership) in connection with the Trust’s and the Fund(s)’
activities;
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(vi)
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third party storage fees of the Trust’s and the Fund(s)’ files and records, etc.; and
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(vii)
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any travel and lodging expenses incurred by officers and employees of the Administrator in connection with its services under this agreement,
including, but not limited to, the attendance at meetings of the Trust’s Board of Trustees.
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(e)
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Compensation from Transactions. The Trust authorizes any entity or person
associated with the Administrator that is a member of a national securities exchange to effect any transaction on the exchange for the account of the Trust which is permitted by Section 11(a) of the Securities Exchange Act of 1934 and Rule
11a2-2(T) thereunder, and the Trust consents to the retention of compensation for such transactions in accordance with Rule 11a2-2(T)(a)(2)(iv) thereunder.
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(f)
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Survival of Compensation Rates. All rights of compensation under this Agreement for services
performed as of the termination date will survive the termination of this Agreement. In addition, upon liquidation or upon termination of this Agreement as to any Fund, the Administrator shall be entitled to such other compensation as set
forth in Appendix C.
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5.
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NON-EXCLUSIVITY
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The services of the Administrator rendered to the Trust are not to be deemed to be exclusive. The Administrator is free to
render such services to others and to have other businesses and interests. It is understood that Trustees, officers, employees, or shareholders of the Trust are or may be or become interested in the Administrator, as directors, officers, employees,
and shareholders or otherwise and that directors, officers, employees, and shareholders of the Administrator and its counsel are or may be or become similarly interested in the Trust, and that the Administrator may be or become interested in the
Trust as a shareholder or otherwise.
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6.
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INDEPENDENT CONTRACTOR STATUS
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The Administrator will, for the purpose of this Agreement, be deemed an independent contractor and, unless otherwise expressly
provided or authorized, will have no authority to act or represent the Trust in any way and will not be deemed an agent of the Trust.
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7.
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LIMITATION OF LIABILITY, INDEMNIFICATION, AND RELIANCE
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For the purposes of this Section 7 the term “Administrator” shall include directors, officers, employees, and other agents of
the Administrator, as well as the Administrator itself:
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(a)
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Limitation of Liability. The duties of the Administrator shall be confined
to those expressly set forth in this Agreement, and no implied duties are assumed by or may be asserted against the Administrator. The Administrator shall not be liable for any error of judgment, mistake of law, loss or damage suffered by
the Fund(s) in connection with any investment, or any act or omission of the Administrator in carrying out its duties under this Agreement, except a loss or damage resulting directly from willful misconduct or gross negligence on the part
of the Administrator in the performance of its duties under this Agreement, or from reckless disregard by the Administrator of its obligations under this Agreement.
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Further, in no event shall the Administrator be liable under any provision of, or in connection with, this
agreement (regardless of whether a claim is based on contract, tort, or otherwise) for any damages other than actual and direct damages, and the Administrator shall have no liability for any incidental, indirect, consequential, special, or exemplary
damages or losses which the Fund(s) may incur or suffer, whether or not the likelihood or possibility of such damages was known to the Administrator in advance.
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(b)
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Indemnification. Provided that the Administrator has exercised reasonable
customary care in the performance of its duties under this Agreement, the Trust assumes full responsibility and will indemnify and defend the Administrator and hold it harmless from and against any and all actions, suits, and claims,
whether groundless or otherwise, and from and against any and all losses, damages, costs, charges, reasonable counsel fees, and disbursements, payments, expenses, and liabilities (including reasonable investigation expenses) of every nature
and character arising or occurring directly or indirectly out of Administrator’s relationship to the Trust under this Agreement or any of Administrator’s action taken or nonactions with respect to the performance of services under this
Agreement; provided, however, Administrator shall not be indemnified against any liability arising out of its own willful misfeasance, bad faith, gross negligence, or reckless disregard in the performance of its duties or its own reckless
disregard of its duties or obligations under this Agreement. The indemnity and defense provisions set forth herein shall indefinitely survive the termination of this Agreement.
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The rights hereunder shall include the right to reasonable advances of defense expenses in the event of any
pending or threatened litigation with respect to which indemnification hereunder may ultimately be merited. In order that the indemnification provision contained herein shall apply, however, it is understood that if in any case the Trust may be
asked to indemnify, defend, or hold the Administrator harmless, the Trust shall be fully and promptly advised of all pertinent facts concerning the situation in question, and it is further understood that the Administrator will use all reasonable
care to identify and notify the Trust promptly concerning any situation which presents or appears likely to present the probability of such a claim for indemnification against the Trust, but failure to do so in good faith will not affect the rights
under this Agreement.
The Trust will be entitled to participate at its own expense or, if it so elects, to assume the defense of
any suit brought to enforce any claims subject to this indemnity provision. If the Trust elects to assume the defense of any such claim, the defense will be conducted by counsel or chosen by the Trust and satisfactory to the Administrator, whose
approval will not be unreasonably withheld. In the event the Trust elects to assume the defense of any suit and retain counsel, the Administrator will bear the fees and expenses of any additional counsel retained by it, absent a conflict of interest
between the Trust and the Administrator. In the event of a conflict between the Trust and the Administrator or if the Trust does not elect to assume the defense of a suit, the Trust shall reimburse the Administrator for the reasonable fees and
expenses of any counsel retained by Administrator.
The Administrator may apply to the Trust at any time for instructions and may consult with the Trust’s
counsel with respect to any matter arising in connection with the Administrator’s duties, and the Administrator will not be liable or accountable for any action taken or omitted by it in good faith in accordance with such instructions or with the
opinion of the Trust’s counsel or auditors. Also, the Administrator will be protected in acting on any document that it reasonably believes to be genuine and to have been signed or presented by the proper person or persons. The Administrator will
not be held to have notice of any change of authority of any officers, employee, or agent of the Trust until receipt of written notice thereof from the Trust.
Should the foregoing indemnification agreement be found unenforceable or that contribution is required from
Administrator, then the Administrator’s aggregate contribution for all losses, claims, damages, or liabilities, including rescission liabilities, shall not exceed the value of all fees earned by and expenses reimbursed to the Administrator pursuant
to this Agreement. No person or entity guilty of fraudulent misrepresentation shall be entitled to contribution from any person or entity that is not so guilty.
Performance by the Administrator of its obligations under this Agreement does not absolve or release the
Trust or the Trust’s investment Advisor from its fiduciary responsibilities to the Funds or the Funds’ shareholders.
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(c)
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Reliance. Except to the extent that the Administrator may be liable
pursuant to this Section 7, the Administrator shall not be liable for any action taken or failure to act in good faith in reliance upon:
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(i)
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Advice from the Trust or from counsel to the Trust;
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(ii)
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Any oral instruction which it receives and which it reasonably believes in good faith (pursuant to procedures mutually agreed to by the
Administrator and the Advisors) was transmitted by the person or persons authorized by the Board to give such oral instruction;
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(iii)
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Any written instruction or certified copy of any resolution of the Board, and the Administrator may rely upon the genuineness of any such document,
copy or facsimile thereof reasonably believed in good faith by the Administrator to have been validly executed; or
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(iv)
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Any signature, instruction, request, letter of transmittal, certificate, opinion of counsel, statement, instrument, report, notice, consent, order,
or other document reasonably believed in good faith by the Administrator to be genuine and to have been signed or presented by the Trust or other proper party or parties;
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and the Administrator shall not be under any duty or obligation to inquire into the validity or invalidity
or authority or lack of authority of any statement, oral or written instruction, resolution, signature, request, letter of transmittal, certificate, opinion of counsel, instrument, report, notice, consent, order, or any other document or instrument
which the Administrator reasonably believes in good faith to be genuine.
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(d)
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Errors of Others. The Administrator shall not be liable for the errors of
other service providers to the Trust, including the errors of pricing services (other than to pursue all reasonable claims against the pricing service based on the pricing services’ standard contracts entered into by the Administrator) and
errors in information provided by an investment Advisor (including prices and pricing formulas and the untimely transmission of trade information) or custodian to the Trust; except or unless any of the Administrator’s actions or inaction is
a direct or proximate cause of the error.
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(e)
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Reliance on Electronic Instructions. If the Trust has the ability to
originate electronic instructions to the Administrator in order to (i) effect the transfer or movement of cash or Shares or (ii) transmit Shareholder information or other information, then in such event the Administrator shall be entitled
to rely on the validity and authenticity of such instruction without undertaking any further inquiry as long as such instruction is undertaken in conformity with security procedures established and agreed upon by the Administrator and the
Advisors.
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8.
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EFFECTIVE DATE, DURATION AND TERMINATION
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(a)
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Effective Date. This Agreement shall become effective on the date first written above.
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(b)
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Duration. This Agreement shall remain effective for a period of one year. Thereafter, this
Agreement shall continue in full force and effect unless terminated by either party.
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(c)
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Termination. This Agreement may be terminated by either party by giving
not less than ninety (90) days’ prior written notice to the other party. This Agreement may also be terminated at any time as follows:
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(i)
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By mutual written agreement of the parties; or
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(ii)
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For cause – in the event of willful misconduct, gross negligence, or breach of this Agreement by the non-moving party. Such termination requires
giving not less than thirty (30) days’ prior written notice to the other party.
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Unless terminated for cause, the Administrator shall be paid either a Termination or Liquidation fee (as
appropriate). Said fee is not a penalty but an extra fee to compensate the Administrator for its service in assisting in transferring records and reports or otherwise wrapping up its services under this Agreement for such Fund. The relevant fee shall
be as follows:
Upon the termination of this Agreement with
respect to any Fund:
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(i)
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A fee equal to the compensation paid (or payable to) the Administrator for the two months
immediately prior to such termination.
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Upon the liquidation of any Fund:
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(i)
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In lieu of the foregoing termination fee, a liquidation fee equal to the compensation paid (or payable to) the Administrator for the three months immediately prior such termination.
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Termination and Liquidation fees shall be paid promptly upon termination or liquidation, respectively.
Termination and Liquidation fees shall be in addition to
reimbursing the Administrator for its reasonable out-of-pocket expenses in connection with the Administrator’s activities in effecting such termination or liquidation. This includes, but is not limited to, the cost of delivering to the Trust or its
designee the Trust’s records and documents or copies thereof.
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(d)
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Cooperation and Good Faith. Upon
termination of this Agreement, the Administrator and the Trust agree to cooperate in good faith in transferring records and other information in the Administrator’s possession and wrapping up their relationship under this Agreement in a
commercially reasonable manner.
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(e)
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Reimbursement. Upon termination of this Agreement for any reason, the Trust shall pay to the Administrator such compensation as may be due to the Administrator under this Agreement for services performed prior to the date of termination,
including any out-of-pocket reimbursements due and payable hereunder.
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(f)
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Termination Fee. Upon termination of this Agreement, the Administrator
shall be paid a termination fee as set forth in Appendix C. This termination fee is not a penalty, but a charge to compensate the Administrator for its services in assisting in transferring records and reports and otherwise wrapping up its
services under this Agreement. Notwithstanding the foregoing, the Administrator shall not be entitled to the termination fee if the Administrator elects to terminate this Agreement or the Administrator is terminated due to its willful
misconduct, gross negligence, or breach of this Agreement.
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(g)
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Survival of Certain Obligations. The obligations of Sections 4, 7, 8, 13, and 14 shall survive any termination of this Agreement.
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9.
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AMENDMENTS
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No provision of this Agreement may be amended, modified, or waived in any manner except by a written instrument signed by the
party against which the enforcement of such is sought.
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10.
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ASSIGNMENT AND SUBCONTRACTING
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(a)
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Assignment. The parties hereby mutually consent that:
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(i)
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Without the express written consent of both parties, any assignment or attempted assignment of this Agreement constitutes a breach of the Agreement;
and
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(ii)
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Any such assignment or attempted assignment is void; and
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(iii)
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Any such assignment or attempted assignment will immediately terminate this Agreement.
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However, to the extent that such express written consent is sought, the parties also agree that such
consent will not be unreasonably withheld or delayed.
In the event that this Agreement is successfully assigned, either by express written consent of the parties
or in any way otherwise, this Agreement shall be binding upon the respective assigns.
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(b)
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Subcontracting. The parties hereby mutually consent that the Administrator may, at its expense unless otherwise provided in the Agreement, subcontract with any entity or person concerning the provision of the services contemplated hereunder. The
Administrator shall not, however, be relieved of any of its obligations under this Agreement by the appointment of such subcontractor. This Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their
respective successors.
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11.
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ADDITIONAL FUNDS AND CLASSES
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If the Trust establishes one or more series of Shares or one or more classes of Shares after the effectiveness of this
Agreement, such series of Shares or classes of Shares, as the case may be, shall become Funds and classes under this Agreement. However, either the Administrator or the Trust may elect in writing not to make any such series or classes subject to this
Agreement.
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12.
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DISTINCTION OF FUNDS
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Notwithstanding any other provision of this Agreement, the parties agree that the assets and liabilities of each Fund of the
Trust are separate and distinct from the assets and liabilities of each other Fund and that no Fund shall be liable or shall be charged for any debt, obligation or liability of any other Fund, whether arising under this Agreement or otherwise. In
cases where there are multiple funds managed by the same Investment Advisor, every attempt will be made to allocate expenses among the funds in a manner that represents the division of expense required for each Fund’s operations.
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13.
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PROPRIETARY INFORMATION
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(a)
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Proprietary Information of the Administrator. The Trust acknowledges that
the databases, computer programs, screen formats, report formats, interactive design techniques, and documentation manuals maintained by the Administrator on databases under the control and ownership of the Administrator or a third party
constitute copyrighted, trade secret, or other proprietary information (collectively, “the Administrator’s Proprietary Information”) of substantial value to the Administrator or the third party. The Trust agrees to treat all Proprietary
Information as proprietary to the Administrator and further agrees that it shall not divulge any Proprietary Information to any person or organization except as may be provided under this Agreement.
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(b)
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Proprietary Information of the Trust. The Administrator acknowledges that
the Shareholder list and all information related to Shareholders furnished to the Administrator by the Trust or by a Shareholder in connection with this Agreement (collectively, “Customer Data”), all information regarding the Trust
Portfolios, arrangements with brokerage firms, compensation paid to or by the Trust, trading strategies and all such related information (collectively, “the Trust’s Proprietary Information”) constitute proprietary information of substantial
value to the Trust. In no event shall the Administrator’s Proprietary Information be deemed the Trust’s Proprietary Information or Customer Data. The Administrator agrees to treat all of the Trust’s Proprietary Information and Customer Data
as proprietary to the Trust and further agrees that it shall not divulge any of the Trust’s Proprietary Information or Customer Data to any person or organization except as may be provided under this Agreement or as may be directed by the
Trust or as may be duly requested by regulatory authorities.
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(c)
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Employee Notification. Each party agrees to take reasonable efforts to
advise its employees of their obligations pursuant to this Section 13. The obligations of this Section shall survive any earlier termination of this Agreement.
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14.
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CONFIDENTIALITY
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The Administrator and the Trust agree that all books, records, information, and data pertaining to the business of the other
party, which are exchanged or received pursuant to the negotiation or the carrying out of this Agreement, shall remain confidential, and shall not be voluntarily disclosed to any other person, except that the Administrator may:
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(a)
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Prepare or assist in the preparation of periodic reports to shareholders and regulatory bodies such as the SEC;
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(b)
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Provide information typically supplied in the investment company industry to companies that track or report price, performance or other information
regarding investment companies;
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(c)
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Release such other information as approved in writing by the Trust which approval shall not be unreasonably withheld;
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(d)
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Release such information as is necessary when the Administrator is exposed to civil or criminal liability for failure to comply when divulgence is
requested by a duly constitutional authority or when so requested by the Trust or Advisors;
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(e)
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In accordance with Section 248.11 of Regulation S-P (17 CFR 248.1 – 248.30) (“Reg S-P”), the Administrator will not directly, or indirectly through
an affiliate, disclose any non-public personal information as defined in Reg S-P, received from the Fund to any person that is not affiliated with the Fund or with the Administrator and provided that any such information disclosed to an
affiliate of the Administrator shall be under the same limitations on non-disclosure.
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For the purposes of this section, the following records and other information shall not be considered confidential:
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(a)
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Any record or other information that is or becomes publicly available through no fault of the administrator;
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(b)
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Any record and other information that s released by the Trust in a public release;
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(c)
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Any record or other information that is lawfully obtained from third parties who are not under an obligation to keep such information confidential;
or
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(d)
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Any record or other information previously known by Administrator.
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15.
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COMPLIANCE
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The Administrator undertakes to comply with all applicable requirements for the Securities Act of 1933, the Securities
Exchange Act of 1934, the Investment Company Act of 1940, and other laws, rules, and regulations of governmental authorities having jurisdiction with respect to the duties to be performed by the Administrator under this Agreement.
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16.
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TRUST OBLIGATION
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It is understood that this Agreement has been executed on behalf of the Trust by a trustee of the Trust in his capacity as
trustee and not individually. The obligations of this Agreement shall only be binding upon the assets and property of each Fund and shall not be binding upon any trustee, officer, or shareholder of the Trust individually.
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17.
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REPRESENTATIONS AND WARRANTIES
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Representations of the Administrator. The Administrator represents and warrants to the Trust that:
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(i)
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It is a corporation duly organized and existing and in good standing under the laws of the State of North Carolina;
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(ii)
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It is empowered under applicable laws and by its organizational documents to enter into this Agreement and perform its duties under this Agreement;
and
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(iii)
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It has access to the necessary facilities, equipment, and personnel to perform its duties and obligations under this Agreement.
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(iv)
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Its fees and charges set out in this Agreement are solely to cover administrative expenses and not distribution expenses.
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Representations of the Trust. The Trust represents and warrants to the Administrator
that:
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(i)
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It is a Trust duly organized and existing and in good standing under the laws of the State of Delaware;
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(ii)
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It is empowered under applicable laws and by its Organizational Documents to enter into and perform this Agreement;
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(iii)
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All proceedings required by said Organizational Documents have been taken to authorize it to enter into and perform this Agreement;
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(iv)
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It is an open-end management investment company registered under the 1940 Act; and
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(v)
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A registration statement under the Securities Act of 1933 is currently effective and will remain effective, and appropriate state securities law
filings as required, have been or will be made and will continue to be made, with respect to all Shares of the Fund being offered for sale.
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18.
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LEGAL CONSTRUCTION
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(a)
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Severability. If any part, term, or provision of this Agreement is held to
be illegal, in conflict with any law or otherwise invalid, the remaining portion or portions shall be considered severable and not affected by such determination, and the rights and obligations of the parties shall be construed and enforced
as if the Agreement did not contain the particular part, term or provision held to be illegal or invalid.
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(b)
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Interpretation. If any provision of this Agreement, or portion thereof,
is capable of two interpretations, one of which would render the provision, or portion thereof, void and the other which would render the provision, or portion thereof, valid, then the provision, or portion thereof, shall have the same
meaning which renders it valid.
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(c)
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Construction. The language used herein shall be deemed to be the language
chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall be applied against either party.
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19.
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NOTICE
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Any notice required or permitted to be given by either party to the other party shall be in writing and will be deemed
sufficient if personally delivered or sent by registered or certified mail, postage prepaid, addressed by the party giving notice to the other party at the following addresses (or such other address for a party as shall be specific by like notice):
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(a)
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To the Trust:
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000 Xxxxx Xxxxxxxx Xxxxxx
Post Xxxxxx Xxx 00
Xxxxx Xxxxx, Xxxxx Xxxxxxxx 00000-0000
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(b)
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To the Administrator:
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The Nottingham Company
Attn: Xxxxxx Xxxx, General Counsel
000 Xxxxx Xxxxxxxx Xxxxxx
Post Xxxxxx Xxx 00
Xxxxx Xxxxx, Xxxxx Xxxxxxxx 00000-0000
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20.
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MISCELLANEOUS
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(a)
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Force Majeure. In the event that either party is unable to perform its
obligations under the terms of this Agreement because of acts of God, strikes, equipment or transmission failure or damage reasonably beyond its control, or other causes reasonably beyond its control, such party shall not be liable for
damages to the other party resulting from such failure to perform or otherwise from such causes.
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(b)
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Arbitration. Any controversy or claim arising out of, or related to, this Agreement, its
termination or the breach thereof, shall be settled by binding arbitration by three arbitrators (or by fewer arbitrator(s), if the parties subsequently agree to fewer) in the City of New York, in accordance with the rules then obtaining of
the American Arbitration Association, and the arbitrators’ decision shall be binding and final, and judgment upon the award may be entered in any court having jurisdiction thereof.
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(c)
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Headings. Section and paragraph
headings in this Agreement are included for convenience only and are not to be used to construe or interpret this Agreement.
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(d)
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Entire Agreement. This Agreement,
including all appendices, constitutes the entire agreement between the parties hereto and supersedes any prior agreement with respect to the subject matter hereof whether oral or written.
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(e)
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Multiple Originals. This
Agreement may be executed in two or more counterparts, each of which when so executed shall be deemed to be an original, but such counterparts shall together constitute one and the same instrument.
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(f)
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Definitions of Certain Terms. The
terms “interested persons” and “affiliated persons,” when used in this Agreement, will have the respective meanings specified in the Investment Company Act of 1940 and the rules and regulations thereunder, subject to such exemptions as
granted by the Securities and Exchange Commission.
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(g)
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Governing Law. This Agreement shall be governed by the laws of the State of North Carolina
without regard to the principles of conflict of laws, provided that nothing herein shall be construed in a manner inconsistent with the Investment Company Act of 1940, the Investment Advisors Act of 1940, or any applicable rule or order of
the Securities and Exchange Commission.
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[Signatures on Following Page]
REPRESENTATION OF SIGNATORIES. Each of the undersigned expressly warrants and
represents that they have full power and authority to sign this Agreement on behalf of the party indicated and that their signature will bind the party indicated to the terms hereof.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written.
| VOLT ETF TRUST | |
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By:
Name:
Title:
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____________________ Xxx Xxxx
President
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| THE NOTTINGHAM COMPANY |
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By:
Name:
Title:
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____________________
Xxxxxxxxx X. Honey
President
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APPENDIX A
FUNDS TO BE SERVICED
1. Volt Crypto Industry Revolution and Tech ETF
APPENDIX B
ADMINISTRATOR’S SERVICES
The Administrator shall provide, or cause to be provided by others, the following services:
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1.
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ACCOUNTING AND ADMINISTRATIVE SERVICES
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The Administrator will provide the Trust with customary administrative services, regulatory reporting, fund
accounting, and related portfolio accounting services, adequate office space, equipment, personnel, and facilities (including facilities for the regular trustees’ meetings) for handling the affairs of the Fund(s), and such other services as the
Trustees may, from time to time, reasonably request, and the Administrator may, from time to time, reasonably determine to be necessary to perform its obligations under this Agreement. In addition, at the request of the Trustees, the Administrator
will make reports to the Trustees concerning the performance of its obligations hereunder.
Without limiting the generality of the foregoing, the Administrator will:
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a.
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Calculate contractual Trust expenses and control all disbursements for the Trust, and, as appropriate, compute each
Fund’s yields, total return, expense ratios, portfolio turnover rate and, if required, portfolio average dollar-weighted maturity;
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b.
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Assist Trust counsel with the preparation of each Fund’s initial (and subsequent annual) prospectus, statement of
additional information, and registration statement;
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c.
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Assist in the preparation of such reports, applications, and documents (including reports regarding the sale and
redemption of shares as may be required in order to comply with Federal and/or state securities laws) as may be necessary or desirable to register the Trust’s shares with state securities authorities, assist in monitoring the sale of the
Trust’s shares for compliance with state securities laws, and assist in the preparation and filing with the appropriate state securities authorities the registration statement and reports for the Trust and the Trust’s shares with state
securities authorities to enable the Trust to make a continuous offering of its shares;
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d.
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Assist in the development and preparation of certain communications to shareholders, including the semi-annual and annual
reports to shareholders (the ‘Shareholder Reports”);
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e.
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Coordinate mailing prospectuses, notices (including privacy policy notices), and other reports to Trust shareholders;
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f.
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Coordinate with Trust counsel the preparation and negotiation of, and administer contracts on behalf of the Trust with,
among others, the Trust’s investment Advisor(s), distributor(s), custodian(s), and transfer agent(s);
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g.
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Maintain the Trust’s general ledger and prepare the financial statements, including expense accruals and payments,
determine the net asset value of the Trust’s assets and of the Trust’s shares, and coordinate with the Trust’s transfer agent(s) with respect to payment of dividends and other distributions to shareholders;
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h.
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Calculate performance data of the Trust and its Fund(s) for dissemination to information services covering the investment
company industry;
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i.
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Assist in the preparation and filing of the Trust’s tax returns;
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j.
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Assist with the examination and review of the operations and performance of the various organizations providing services
to the Trust or any Fund of the Trust, including the Trust’s investment Advisor(s), distributor(s), custodian(s), transfer agent(s), outside legal counsel, and independent public accountants, and at the request of the Board of Trustees,
report to the Trustees on the performance of such organizations;
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k.
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Assist with the layout and printing of publicly disseminated prospectuses and assist with and coordinate layout and
printing of the Trust’s semi-annual and annual reports to shareholders;
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l.
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Provide internal legal and administrative services as reasonably requested by the Trust from time to time, including,
without limitation, preparation of materials for the quarterly and annual meetings of the Board of Trustees;
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m.
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Assist with the design, development, and operation of the Trust;
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n.
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Assist in identifying individuals acceptable to the Trustees for nomination, appointment, or election as officers of the
Trust, who will be responsible for the management of certain of the Trust’s affairs as determined by the Trustees;
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o.
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Coordinate and assist the Trust in obtaining and keeping in effect a fidelity bond and Trustees and officers/errors and
omissions insurance policies for the Trust in accordance with the requirements of Rules 17g-1 and 17d-1(7) under the Investment Company Act of 1940 as such bonds and policies are approved by the Trust’s Board of Trustees;
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p.
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Monitor and advise the Trust and its Fund(s) on its registered investment company status under the Internal Revenue Code
of 1986;
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q.
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Furnish advice and recommendations with respect to other aspects of the business and affairs of the Fund(s) as the Trust
and the Administrator shall determine desirable; and
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r.
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Assist with the preparation of and file with the SEC the semi-annual and annual reports for the Trust on Form N-SAR and
N-CSR and all required notices pursuant to Rule 24f-2.
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2.
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CUSTODIAN SERVICES
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The Administrator shall procure on behalf of the Trust and the Fund(s) a custodian or custodians for the
Fund(s) to provide for the safekeeping of the Fund’s assets. Administrator shall be responsible for compensating such custodian or custodians out of Administrator’s compensation as set forth in Appendix C of this Agreement. Such custodian or
custodians shall be subject to the approval of the Trustees. The Trust may be a party to any foregoing agreement.
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3.
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LEGAL SERVICES
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The Administrator shall procure legal counsel to the Trust and the Fund(s) to provide representation and legal
services. Trust and Fund shall be responsible for all legal fees incurred by the Trust and Fund. Administrator shall be responsible for allocating such expenses to the best of its ability based upon knowledge of the work being completed. Such
services are expected to typically include ordinary legal services provided by Fund counsel for review of documents, board materials, attendance at Board meetings, and availability for ongoing operational compliance issues; and for Counsel to the
Independent Trustees, to provide guidance on Board compliance and other governance items as they may arise. The Fund or the Advisor, as the individual case may dictate by discussion and Board action, shall be directly responsible for non-recurring,
special situations that arise, including, for example, services provided in connection with special meetings of the board of trustees, additions of new classes or series of shares, shareholder meetings and proxy solicitations, material changes to a
Fund’s registration statement, examinations by the Securities and Exchange Commission, and litigation to which a Fund may be a party. Legal counsel shall be subject to the approval of the Trustees. The Trust may be a party to any foregoing
agreement.
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4.
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OTHER SERVICES
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The Administrator will perform other services for the Trust as agreed to by the Administrator and the Trust
from time to time, including, but not limited to performing internal audit examinations, preparation of materials for special board meetings, assisting Trust counsel in the preparation of proxy materials, and assisting in the development of new
Funds or Fund classes. The Administrator shall be entitled to additional compensation for such other services.
