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EXHIBIT 99.(H)(1)
TRANSFER AGENCY, DIVIDEND DISBURSING AGENCY
AND SHAREHOLDER SERVICING AGENCY AGREEMENT
THIS AGREEMENT made as of the ___ day of October, 2000 by and
between Xxxxxxx Xxxxx Investment Managers Funds, Inc., a Maryland corporation
(the "Corporation"), on behalf of itself and each of its portfolios listed on
Exhibit A, and Financial Data Services, Inc. ("FDS"), a Florida corporation.
WITNESSETH:
WHEREAS, the Corporation wishes to appoint FDS to be the Transfer
Agent, Dividend Disbursing Agent and Shareholder Servicing Agent upon, and
subject to, the terms and provisions of this Agreement, and FDS is desirous of
accepting such appointment upon, and subject to, such terms and provisions:
NOW THEREFORE, in consideration of mutual covenants contained in
this Agreement, the Corporation and FDS agree as follows:
1. APPOINTMENT OF FDS AS TRANSFER AGENT, DIVIDEND DISBURSING AGENT AND
SHAREHOLDER SERVICING AGENT.
a. The Corporation hereby appoints FDS to act as Transfer Agent,
Dividend Disbursing Agent and Shareholder Servicing Agent for the Corporation
upon, and subject to, the terms and provisions of this Agreement.
b. FDS hereby accepts the appointment as Transfer Agent, Dividend
Disbursing Agent and Shareholder Servicing Agent for the Corporation, and agrees
to act as such upon, and subject to, the terms and provisions of this Agreement.
2. DEFINITIONS.
a. In this Agreement:
(I) The term "Act" means the Investment Company Act of 1940 as
amended from time to time and any rule or regulation thereunder;
(II) The term "Account" means any account of a Shareholder, or,
if the shares are held in an account in the name of a Broker-Dealer, as defined
below, for the benefit of an identified person, such account, including a Plan
Account, any account under a plan (by whatever name referred to in the
Prospectus) pursuant to the Self-Employed Individuals Retirement Act of 1962
("Xxxxx Act Plan") and any account under any plan (by whatever name referred to
in the Prospectus) pursuant to Section 401(k) of the Internal Revenue Code
("Fund Master Plan");
(III) The term "application" means an application made by a
Shareholder or prospective Shareholder respecting the opening of an Account;
(IV) The term "Fund Distributor" means FAM Distributors, Inc., a
Delaware corporation;
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(V) The term "Broker-Dealer" means a registered broker-dealer
that sells shares of the Corporation pursuant to a selected dealer's agreement
with the Fund Distributor;
(VI) The term "Officer's Instruction" means an instruction in
writing given on behalf of the Corporation to FDS, and signed on behalf of the
Corporation by the President, any Vice President, the Secretary or the Treasurer
of the Corporation;
(VII) The term "Prospectus" means the Prospectus and the
Statement of Additional Information of the Corporation as from time to time in
effect;
(VIII) The term "Shares" means shares of common stock of the
Corporation, irrespective of class or series;
(IX) The term "Shareholder" means the holder of record of Shares;
(X) The term "Plan Account" means an account opened by a
Shareholder or prospective Shareholder in respect to an open account, monthly
payment or withdrawal plan (in each case by whatever name referred to in the
Prospectus), and may also include an account relating to any other plan if and
when provision is made for such plan in the Prospectus.
3. DUTIES OF FDS AS TRANSFER AGENT, DIVIDEND DISBURSING AGENT AND
SHAREHOLDER SERVICING AGENT.
a. Subject to the succeeding provisions of the Agreement, FDS hereby
agrees to perform the following functions as Transfer Agent, Dividend Disbursing
Agent and Shareholder Servicing Agent for the Corporation;
(I) Issuing, transferring and redeeming Shares;
(II) Opening, maintaining, servicing and closing Accounts;
(III) Acting as agent for the Corporation's Shareholders and/or
customers of a Broker-Dealer in connection with Plan Accounts, upon the terms
and subject to the conditions contained in the Prospectus and application
relating to the specific Plan Account;
(IV) Acting as agent of the Corporation and/or a Broker-Dealer,
maintaining such records as may permit the imposition of such contingent
deferred sales charges as may be described in the Prospectus, including such
reports as may be reasonably requested by the Corporation with respect to such
Shares as may be subject to a contingent deferred sales charge;
(V) Upon the redemption of Shares subject to such a contingent
deferred sales charge, calculating and deducting from the redemption proceeds
thereof the amount of such charge in the manner set forth in the Prospectus. FDS
shall pay, on behalf of the Fund Distributor, to a Broker-Dealer such deducted
contingent deferred sales charges imposed upon all Shares maintained in the name
of that Broker-Dealer, or maintained in the name of an account identified as a
customer account of that Broker-Dealer. Sales charges imposed upon any other
Shares shall be paid by FDS to the Fund Distributor.
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(VI) Exchanging the investment of a Shareholder into, or from the
shares of other open-end investment companies or other portfolios of the
Corporation if and to the extent permitted by the Prospectus at the direction of
such Shareholder.
(VII) Processing redemptions;
(VIII) Examining and approving legal transfers;
(IX) Furnishing such confirmations of transactions relating to
their Shares as required by applicable law;
(X) Acting as agent for the Corporation with respect to
furnishing each Shareholder such appropriate periodic statements relating to
Accounts, together with additional enclosures, including appropriate income tax
information and income tax forms duly completed, as required by applicable law,
as well as furnishing such information to each Broker-Dealer to enable the
Broker-Dealer to provide such information to its customers;
(XI) Acting as agent for the Corporation with respect to mailing
annual, semi-annual and quarterly reports prepared by or on behalf of the
Corporation, and mailing new Prospectuses upon their issue to each Shareholder
as required by applicable law, as well as causing such materials to be mailed to
each Broker-Dealer to enable the Broker-Dealer to deliver such materials to its
customers;
(XII) Furnishing such periodic statements of transactions
effected by FDS, reconciliations, balances and summaries as the Corporation may
reasonably request;
(XIII) Maintaining such books and records relating to
transactions effected by FDS as are required by the Act, or by any other
applicable provision of law, rule or regulation, to be maintained by the
Corporation or its transfer agent with respect to such transactions, and
preserving, or causing to be preserved any such books and records for such
periods as may be required by any such law, rule or regulation and as may be
agreed upon from time to time between FDS and the Corporation. In addition, FDS
agrees to maintain and preserve master files and historical computer tapes on a
daily basis in multiple separate locations a sufficient distance apart to ensure
preservation of at least one copy of such information;
(XIV) Withholding taxes on non-resident alien Accounts, preparing
and filing U.S. Treasury Department Form 1099 and other appropriate forms as
required by applicable law with respect to dividends and distributions; and
(XV) Reinvesting dividends for full and fractional shares and
disbursing cash dividends, as applicable pursuant to instructions received from
the Shareholder at the time an Account is established.
b. FDS agrees to act as proxy agent in connection with the holding of
annual, if any, and special meetings of Shareholders, mailing such notices,
proxies and proxy statements in connection with the holding of such meetings as
may be required by applicable law, receiving and tabulating votes cast by proxy
and communicating to the Corporation the results of such tabulation accompanied
by appropriate certificates, and preparing and furnishing to the
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Corporation certified lists of Shareholders as of such date, in such form and
containing such information as may be required by the Corporation.
c. FDS agrees to deal with, and answer in a timely manner, all
correspondence and inquiries relating to the functions of FDS under this
Agreement with respect to Accounts.
d. FDS agrees to furnish to the Corporation such information and at
such intervals as is necessary for the Corporation to comply with the
registration and/or the reporting requirements (including applicable escheat
laws) of the Securities and Exchange Commission, Blue Sky authorities or other
governmental authorities.
e. FDS agrees to provide to the Corporation such information as may
reasonably be required to enable the Corporation to reconcile the number of
outstanding Shares between FDS's records and the account books of the
Corporation.
f. Notwithstanding anything in the foregoing provisions of this
paragraph, FDS agrees to perform its functions thereunder subject to such
modification (whether in respect of particular cases or in any particular class
of cases) as may from time to time be agreed in a writing signed by both
parties.
4. COMPENSATION.
The Corporation agrees to pay FDS the fees and charges, as well
as FDS's out of pocket costs, for services described in this Agreement as set
forth in the Schedule of Fees attached hereto.
5. RIGHT OF INSPECTION.
FDS agrees that it will in a timely manner make available to, and
permit, any officer, accountant, attorney or authorized agent of the Corporation
to examine and make transcripts and copies (including photocopies and computer
or other electronic information storage media and print-outs) of any and all of
its books and records which relate to any transaction or function performed by
FDS under or pursuant to this Agreement.
6. CONFIDENTIAL RELATIONSHIP.
FDS agrees that it will, on behalf of itself and its officers and
employees, treat all transactions contemplated by this Agreement, and all
information germane thereto, as confidential and not to be disclosed to any
person (other than the Shareholder concerned, or the Corporation, or as may be
disclosed in the examination of any books or records by any person lawfully
entitled to examine the same) except as may be authorized by the Corporation by
way of an Officer's Instruction.
7. INDEMNIFICATION.
The Corporation shall indemnify and hold FDS harmless from any
loss, costs, damage and reasonable expenses, including reasonable attorney's
fees (provided that such attorney is appointed with the Corporation's consent,
which consent shall not be unreasonably
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withheld), incurred by it resulting from any claim, demand, action, or suit in
connection with the performance of its duties hereunder, provided that this
indemnification shall not apply to actions or omissions of FDS in cases of
willful misconduct, failure to act in good faith or negligence by FDS, its
officers, employees or agents, and further provided that prior to confessing any
claim against it which may be subject to this indemnification, FDS shall give
the Corporation reasonable opportunity to defend against said claim in its own
name or in the name of FDS. An action taken by FDS upon any Officer's
Instruction reasonably believed by it to have been properly executed shall not
constitute willful misconduct, failure to act in good faith or negligence under
this Agreement.
FDS shall indemnify and hold the Corporation harmless from any
loss, costs, damage and reasonable expenses, including reasonable attorney's
fees (provided that such attorney is appointed with the Corporation's consent,
which consent shall not be unreasonably withheld), incurred by it resulting from
any claim, demand, action, or suit by any person in connection with any action
taken or omitted to be taken by FDS as a result of FDS's refusal or failure to
comply with the terms of this Agreement, its bad faith, negligence, or willful
misconduct.
8. REGARDING FDS.
a. FDS hereby agrees to hire, purchase, develop and maintain such
dedicated personnel, facilities, equipment, software, resources and capabilities
as both parties may mutually determine to be reasonably necessary for the
satisfactory performance of the duties and responsibilities of FDS. FDS warrants
and represents that its officers and supervisory personnel charged with carrying
out its functions as Transfer Agent, Dividend Disbursing Agent and Shareholder
Servicing Agent for the Corporation possess the special skill and technical
knowledge appropriate for that purpose. FDS shall at all times exercise due care
and diligence in the performance of its functions as Transfer Agent, Dividend
Disbursing Agent and Shareholder Servicing Agent for the Corporation. FDS agrees
that, in determining whether it has exercised due care and diligence, its
conduct shall be measured by the standard applicable to persons possessing such
special skill and technical knowledge.
b. FDS warrants and represents that it is duly authorized and permitted
to act as Transfer Agent, Dividend Disbursing Agent and Shareholder Servicing
Agent under all applicable laws and that it will immediately notify the
Corporation of any revocation of such authority or permission or of the
commencement of any proceeding or other action which may lead to such
revocation.
9. TERMINATION.
a. This Agreement shall become effective as of the date first above
written and shall remain in force for two years thereafter and shall thereafter
continue from year to year. This Agreement may be terminated by the Corporation
or FDS (without penalty to the Corporation or FDS) provided that the terminating
party gives the other party written notice of such termination at least sixty
(60) days in advance, except that the Corporation may terminate this Agreement
immediately upon written notice to FDS if the authority or permission of FDS to
act as Transfer Agent, Dividend Disbursing Agent and Shareholder Servicing Agent
has been revoked or if any
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proceeding or other action which the Corporation reasonably believes will lead
to such revocation has been commenced.
b. Upon termination of this Agreement, FDS shall deliver all
Shareholder records, books, stock ledgers, instruments and other documents
(including computerized or other electronically stored information) made or
accumulated in the performance of its duties as Transfer Agent, Dividend
Disbursing Agent and Shareholder Servicing Agent for the Corporation along with
a certified locator document clearly indicating the complete contents therein,
to such successor as may be specified in a notice of termination or Officer's
Instruction; and the Corporation assumes all responsibility for failure
thereafter to produce any paper, record or documents so delivered and identified
in the locator document, if and when required to be produced.
10. AMENDMENT.
Except to the extent that the performance by FDS or its functions
under this Agreement may from time to time be modified by an Officer's
Instruction, this Agreement may be amended or modified only by further written
agreement between the parties.
11. GOVERNING LAW.
This Agreement shall be governed by the laws of the State of New
York.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be signed by their respective duly authorized officers and their respective
corporate seals hereunto duly affixed and attested, as of the day and year above
written.
Xxxxxxx Xxxxx Investment Managers Funds, Inc.
By:
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Xxxxx X. Xxxxxx
President
Financial Data Services, Inc.
By:
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Name:
Title:
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EXHIBIT A
INDIVIDUAL PORTFOLIOS OF XXXXXXX XXXXX INVESTMENT MANAGERS FUNDS, INC.
Xxxxxxx Xxxxx Total Return Bond Fund
Xxxxxxx Xxxxx Low Duration Fund
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SCHEDULE OF FEES
The Fund will pay to FDS:
1. For all accounts other than those detailed below an annual fee of $11.00
per Class A and Class D Shareholder Account and $14.00 per Class B and
Class C Shareholder Account. Additionally, a $.20 monthly closed account
charge will be assessed to all accounts which close during the calendar
year. Application of this fee will commence the month following the month
the account is closed. At the end of the calendar year, the closed account
fee will be waived.
2. For ERISA accounts held in the MFA program or any other program requiring
equalization under ERISA, the Fund will pay an annual fee equal to 10
basis points on the net assets in these accounts instead of the per
account charge.
3. For "Large" and "Mid" market employee benefit plan accounts, the Fund will
pay an annual fee of $11.00 per Class A and Class D Shareholder Account
and $14.00 per Class B and Class C Shareholder Account plus $1.00 per
transaction.
4. For "Small" market employee benefit plans, the Fund will pay per each
Shareholder Account based on the following schedule:
ACCOUNT SIZE BASE FEE TRANSACTIONS
< $1,000 $7.00 $0.00
$1,000 < $2,500 $11.00 $0.00
> $2,500 $11.00 $1.00
In addition, the Fund shall reimburse FDS for the following out-of-pocket
expenses incurred by FDS pursuant to this Agreement:
- Postage
- Envelopes/stationery
- Record storage and retrieval
- Telephone (local and long distance)
- Pre-authorized checks
- Returned check fees/charges and other similar fees/charges
- Handling costs (ADP or other similar vendor)
- Fed wire charges (excluding wires to/from the Fund's custody accounts)
- Forms
- Any other costs agreed in writing by the parties
