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EXHIBIT 99.B9(c)
ADMINISTRATIVE SERVICES AGREEMENT
AGREEMENT dated this 1st day of April, 1997, by and between XXXXXX U.S.
GOVERNMENT SECURITIES FUND, a Massachusetts business trust (the "Fund"), and
XXXXXX DISTRIBUTORS, INC., a Delaware corporation ("KDI").
In consideration of the mutual covenants hereinafter contained, it is
hereby agreed by and between the parties hereto as follows:
1. The Fund hereby appoints KDI to provide information and administrative
services for the benefit of the Fund and its shareholders. In this regard,
KDI shall appoint various broker-dealer firms and other service or
administrative firms ("Firms") to provide related services and facilities for
persons who are investors in the Fund ("investors"). The Firms shall provide
such office space and equipment, telephone facilities, personnel or other
services as may be necessary or beneficial for providing information and
services to investors in the Fund. Such services and assistance may include,
but are not limited to, establishing and maintaining accounts and records,
processing purchase and redemption transactions, answering routine inquiries
regarding the Fund and its special features, assistance to investors in
changing dividend and investment options, account designations and addresses,
and such other administrative services as the Fund or KDI may reasonably
request. Firms may include affiliates of KDI. KDI may also provide some of
the above services for the Fund directly.
KDI accepts such appointment and agrees during such period to render such
services and to assume the obligations herein set forth for the compensation
herein provided. KDI shall for all purposes herein provided be deemed to be an
independent contractor and, unless otherwise expressly provided or authorized,
shall have no authority to act for or represent the Fund in any way or
otherwise be deemed an agent of the Fund. KDI, by separate agreement with the
Fund, may also serve the Fund in other capacities. In carrying out its duties
and responsibilities hereunder, KDI will appoint various Firms toprovide
administrative and other services described herein directly to or forthe
benefit of investors in the Fund. Such Firms shall at all times be deemed to
be independent contractors retained by KDI and not the Fund. KDI and not the
Fund will be responsible for the payment of compensation to such Firms for such
services.
2. For the administrative services and facilities described in Section 1, the
Fund will pay to KDI at the end of each calendar month an administrative
service fee computed at an annual rate of
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up to 0.25 of 1% of the average daily net assets of the Fund (except assets
attributable to Class I Shares). The current fee schedule is set forth as
Appendix I hereto. The administrative service fee will be calculated
separately for each class of each series of the Fund as an expense of each such
class; provided, however, no administrative service fee shall be payable with
respect to Class I Shares. For the month and year in which this Agreement
becomes effective or terminates, there shall be an appropriate proration on the
basis of the number of days that the Agreement is in effect during such month
and year, respectively. The services of KDI to the Fund under this Agreement
are not to be deemed exclusive, and KDI shall be free to render similar
services or other services to others.
The net asset value for each share of the Fund shall be calculated in
accordance with the provisions of the Fund's current prospectus. On each day
when net asset value is not calculated, the net asset value of a share of the
Fund shall be deemed to be the net asset value of such a share as of the close
of business on the last day on which such calculation was made for the purpose
of the foregoing computations.
3. The Fund shall assume and pay all charges and expenses of its operations
not specifically assumed or otherwise to be provided by KDI under this
Agreement.
4. This Agreement may be terminated at any time without the payment of any
penalty by the Fund or by KDI on sixty (60) days written notice to the other
party. Termination of this Agreement shall not affect the right of KDI to
receive payments on any unpaid balance of the compensation described in Section
2 hereof earned prior to such termination. This Agreement may not be amended
for any class of any series of the Fund to increase the amount to be paid to
KDI for services hereunder above .25 of 1% of the average daily net assets of
such class without the vote of a majority of the outstanding voting securities
of such class. All material amendments to this Agreement must in any event be
approved by vote of the Board of the Fund.
5. If any provision of this Agreement shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder shall not be thereby
affected.
6. Any notice under this Agreement shall be in writing, addressed and
delivered or mailed, postage prepaid, to the other party at such address as
such other party may designate for the receipt of such notice.
7. All parties hereto are expressly put on notice of the Fund's Agreement and
Declaration of Trust and all amendments thereto, all of which are on file with
the Secretary of The Commonwealth of Massachusetts, and the limitation of
shareholder and trustee
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liability contained therein. This Agreement has been executed by and on behalf
of the Fund by its representatives as such representatives and not
individually, and the obligations of the Fund hereunder are not binding upon
any of the trustees, officers or shareholders of the Fund individually but are
binding upon only the assets and property of the Fund.
8. This Agreement shall be construed in accordance with applicable federal
law and (except as to Section 7 hereof which shall be construed in accordance
with the laws of The Commonwealth of Massachusetts) the laws of the State of
Illinois.
IN WITNESS WHEREOF, the Fund and KDI have caused this Agreement to be executed
as of the day and year first above written.
XXXXXX U.S. GOVERNMENT XXXXXX DISTRIBUTORS, INC.
SECURITIES FUND
By: /s/ Xxxx X. Xxxx By: /s/ Xxxxx X. Xxxxxxxxxx
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Title: Vice President Title: President
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APPENDIX I
XXXXXX U.S. GOVERNMENT SECURITIES FUND
FEE SCHEDULE FOR ADMINISTRATIVE
SERVICES AGREEMENT
Pursuant to Section 2 of the Administrative Services Agreement to which this
Appendix is attached, the Fund and KDI agree that the administrative service
fee will be computed at an annual rate of .25 of 1% (the "Fee Rate") based upon
assets with respect to which a Firm provides administrative services.
Notwithstanding the foregoing, the administrative service fee with respect to
Class A Shares shall be paid at an annual rate of (a) .15 of 1% of net assets
of those accounts in the Fund attributable to such shares acquired prior to
October 1, 1993, and (b) .25 of 1% of net assets of those accounts in the Fund
attributable to such shares acquired on or after October 1, 1993.
Dated: April 1, 1997
XXXXXX U.S. GOVERNMENT XXXXXX DISTRIBUTORS, INC.
SECURITIES FUND
By: /s/ Xxxx X. Xxxx By: /s/ Xxxxx X. Xxxxxxxxxx
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Title: Vice President Title: President
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