Exhibit 9.1
FUND ACCOUNTING SERVICING AGREEMENT
This contract between Concorde Value Fund, Texas Corporation,
hereinafter called the "Fund," and Firstar Trust Company, a Wisconsin
corporation, hereinafter called "FTC," is entered into on this 3rd day of
June, 1993.
WITNESSETH:
WHEREAS, Concorde Value Fund, is a financial services company
providing investment opportunities through mutual funds to various
investors;
WHEREAS, Firstar Trust Company ("FTC") is in the business of
providing, among other things, mutual fund accounting services to
investment companies;
NOW, THEREFORE, the Fund and FTC do mutually promise and agree as
follows:
1. Services. FTC agrees to provide the following mutual fund
accounting services to the Fund:
A. Portfolio Accounting Services:
(1) Maintain portfolio records on a trade date basis using
security trade information communicated from the investment
manager on a timely basis
(2) For each valuation date, obtain prices from a pricing
source approved by the Board of Directors and apply those prices
to the portfolio positions. For those securities where market
quotations are not readily available, the Board of Directors
shall approve, in good faith, the method for determining the
fair value for such securities.
(3) Identify interest and dividend accrual balances as of
each valuation date and calculate gross earnings on investments
for the accounting period.
(4) Determine gain/loss on security sales and identify
them as to short-short, short- or long-term status; accounting
for periodic distributions of gains or losses to shareholders
and maintain undistributed gain or loss balances as of each
valuation date.
B. Expense Accrual and Payment Services:
(1) For each valuation date, calculate the expense accrual
amounts as directed by the Fund as to methodology, rate or
dollar amount.
(2) Record payments for fund expenses upon receipt of
written authorization from the Fund.
(3) Account for fund expenditures and maintain expense
accrual balances at the level of accounting detail, as agreed
upon by FTC and the Fund.
(4) Provide expense accrual and payment reporting.
C. Fund Valuation and Financial Reporting Services:
(1) Accounting for fund share purchases, sales, exchanges,
transfers, dividend reinvestments, and other fund share activity
as reported by the transfer agent on a timely basis.
(2) Apply equalization accounting as directed by the Fund.
(3) Determine net investment income (earnings) for the
Fund as of each valuation date. Accounting for periodic
distributions of earnings to shareholders and maintain
undistributed net investment income balances as of each
valuation date.
(4) Maintain a general ledger for the Fund in the form as
agreed upon.
(5) For each day the Fund is open as defined in the
prospectus, determine the net asset value of the Fund according
to the accounting policies and procedures set forth in the
prospectus.
(6) Calculate per share net asset value, per share net
earnings, and other per share amounts reflective of fund
operation at such time as required by the nature and
characteristics of the fund.
(7) Communicate, at an agreed upon time, the per share
price for each valuation date to parties as agreed upon from
time to time.
(8) Prepare monthly reports which document the adequacy of
accounting detail to support month-end ledger balances.
D. Tax Accounting Services:
(1) Maintain tax accounting records for the investment
portfolio of the Fund to support the tax reporting required for
IRS-defined regulated investment companies.
(2) Maintain tax lot detail for the investment portfolio.
(3) Calculate taxable gain/loss on security sales using
the tax cost basis defined for the Fund.
(4) Provide the necessary financial information to support
the taxable components of income and capital gains distributions
to the transfer agent to support tax reporting to the
shareholders.
E. Compliance Control Services:
(1) Support reporting to regulatory bodies and support
financial statement preparation by making the fund accounting
records available to Concorde Value Fund, the Securities and
Exchange commission, and the outside auditors.
(2) Maintain accounting records according to the
Investment Company Act of 1940 and regulations provided
thereunder.
2. Changes in Accounting Procedures. Any resolution passed by the
Board of Directors that affects accounting practices and procedures under
this agreement shall be effective upon written receipt and acceptance by
the FTC.
3. Changes in Equipment, Systems, Service, Etc. FTC reserves the
right to make changes from time to time, as it deems advisable, relating
to its services, systems, programs, rules, operating schedules and
equipment, so long as such changes do not adversely affect the service
provided to the Fund under this Agreement.
4. Compensation. FTC shall be compensated for providing the
services set forth in this Agreement in accordance with the Fee Schedule
attached hereto as Exhibit A and as mutually agreed upon and amended from
time to time.
5. Performance of Service. FTC shall exercise reasonable care in
the performance of its duties under the Agreement. The Concorde Value
Fund agrees to reimburse and make FTC whole for any loss or damages
(including reasonable fees and expenses of legal counsel) arising out of
or in connection with its actions under this Agreement so long as FTC acts
in good faith and is not negligent or guilty of any willful misconduct.
FTC shall not be liable or responsible for delays or errors
occurring by reason of circumstances beyond its control, including acts o
civil or military authority, natural or state emergencies, fire,
mechanical breakdown, flood or catastrophe, acts of God, insurrection,
war, riots or failure of transportation, communication or power supply.
In the event of a mechanical breakdown beyond its control, FTC
shall take all reasonable steps to minimize service interruptions for any
period that such interruption continues beyond FTC's control. FTC will
make every reasonable effort to restore any lost or damaged data and the
correcting of any errors resulting from such a breakdown will be at the
expense of FTC. FTC agrees that it shall at all times have reasonable
contingency plans with appropriate parties, making reasonable provision
for emergency use of electrical data processing equipment to the extent
appropriate equipment is available. Representatives of the Fund shall be
entitled to inspect FTC's premises and operating capabilities at any time
during regular business hours of FTC, upon reasonable notice to FTC.
This indemnification includes any act, omission to act, or delay
by FTC in reliance upon, or in accordance with, any written or oral
instruction it receives from any duly authorized officer of the Fund.
Regardless of the above, FTC reserves the right to reprocess and
correct administrative errors at its own expense.
6. No Agency Relationship. Nothing herein contained shall be
deemed to authorize or empower FTC or the Fund to act as agent for any
other party to this Agreement, or to conduct business in the name of, or
for the account of, any other party to this Agreement.
7. Ownership of Records. All records prepared or maintained by FTC
on behalf of the fund remain the property of the Fund and will be
surrendered promptly on the written request of an authorized officer of
the Fund.
8. Confidentiality. FTC shall handle in confidence all information
relating to the Fund's business, which is received by FTC during the
course of rendering any service hereunder.
9. Data necessary to Perform Services. The Fund or its agent,
which may be FTC, shall furnish to FTC the data necessary to perform the
services described herein at times and in such form as mutually agreed
upon.
10. Notification of Error. The Fund will notify FTC of any
balancing or control error caused by FTC within three (3) business days
after receipt of any reports rendered by FTC to the Fund, or within three
(3) business days after discovery of any error or omission not covered in
the balance or control procedure, or within three (3) business days of
receiving notice from any shareholder.
11. Term of Agreement. This Agreement may be terminated by either
party upon giving ninety (90) days prior written notice to the other party
or such shorter period as is mutually agreed upon by the parties.
However, this Agreement may be replaced or modified by a subsequent
agreement between the parties.
12. Duties in the Event of Termination. In the event that in
connection with termination a Successor to any of FTC's duties or
responsibilities hereunder is designated by Concorde Value Fund by written
notice to FTC, FTC will promptly, upon such termination and at the expense
of Concorde Value Fund, transfer to such Successor all relevant books,
records, correspondence and other data established or maintained by FTC
under this Agreement in a form reasonably acceptable to Concorde Value
Fund (if such form differs from the form in which FTC has maintained the
same, Concorde Value Fund shall pay any expenses associated with
transferring the same to such form), and will cooperate in the transfer of
such duties and responsibilities, including provision for assistance from
FTC's personnel in the establishment of books, records and other data by
such successor.
13. Choice of Law. This memorandum of understanding shall be
construed in accordance with the laws of the State of Wisconsin.
IN WITNESS WHEREOF, the due execution hereof on the date first above
written.
Firstar Trust Company
ATTEST:
By
Concorde Value Fund
ATTEST:
By
Xxxx X. Xxxx, President
First Trust Company
Mutual Fund Services
Fund Valuation and Accounting
Annual Fee Schedule
For Domestic Portfolios
Portfolio Services - Fixed Income Funds
- Annual fee per fund based on market value of assets:
$22,000 for the first $40,000,000
2/100 of 1% (2 basis points) on the next $200,000,000
1/100 of 1% (1 basis point) on the balance
- Out-of-pocket expenses, including daily pricing service
- Fees are billed monthly
Portfolio Services - Equity/Balanced Funds
- Annual fee per fund based on market value of assets:
$20,000 for the first $40,000,000
1/100 of 1% (1 basis point) on the next $200,000,000
5/1000 of 1% (1/2 basis point) on the balance
- Out-of-pocket expenses, including daily pricing service
- Fees are billed monthly
Portfolio Services - Money Market Funds
- Annual fee per fund based on market value of assets:
$20,000 for the first $40,000,000
5/1000 of 1% (1/2 basis point) on the balance
- Out-of-pocket expenses, including daily pricing service
- Fees are billed monthly
First Trust Company
Mutual Fund Services
Fund Valuation and Accounting
Asset Pricing Costs
Charge per Item per Valuation
Asset Type (daily, weekly, etc.)
Domestic and Canadian Equities $0.15
Options $0.15
Corporate/Gov't/Agency Bonds $0.50
CMOs $0.60
Municipal Bonds $0.80
Money Market Instruments $0.80
Pricing costs are billed monthly
