ADMINISTRATION AGREEMENT
MPAM FUNDS TRUST
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
June 14, 2000
Mellon Bank, N.A.
Xxx Xxxxxx Xxxx Xxxxxx
Xxxxxxxxxx, XX 00000
Dear Sirs:
The above-named investment company (the "Fund") herewith confirms its
agreement with you as follows:
The Fund desires to employ its capital by investing and reinvesting the
same in investments of the type and in accordance with the limitations specified
in its charter documents and in its Prospectus and Statement of Additional
Information as from time to time in effect, copies of which have been or will be
submitted to you, and in such manner and to such extent as from time to time may
be approved by the Fund's Board. The Fund intends to employ MPAM Advisers, a
division of The Dreyfus Corporation, (the "Adviser") to act as its investment
adviser and desires to employ you to act as its administrator.
In this connection it is understood that from time to time you will
employ or associate with yourself such person or persons as you may believe to
be particularly fitted to assist it in the performance of this Agreement. Such
person or persons may be officers or employees who are employed by both you and
the Fund. The compensation of such person or persons shall be paid by you and no
obligation may be incurred on the Fund's behalf in any such respect. We have
discussed and concur in your employing on this basis The Dreyfus Corporation to
act as the Fund's sub-administrator (the "Sub-Administrator") to provide
sub-administrative services to the Fund.
Subject to the supervision and control of the Fund's Board, you will
assist in supervising all aspects of the Fund's operations except investment
management of the Fund's portfolio, which shall be performed by the Adviser
under its Investment Advisory Agreement with the Fund. It is understood that you
shall not act and shall not be required to act as an investment adviser or have
any authority to supervise the investment or reinvestment of the cash,
securities or other property comprising the Fund's assets or to determine what
securities or other property may be purchased or sold by the Fund. You shall be
responsible for maintaining records relating to the individual "MPAM Accounts"
and for maintaining relations with the "MPAM Clients" as these terms are defined
in the Fund's prospectus. These services shall include aggregation of the
purchase and redemption orders for the MPAM Accounts and transmission to the
Fund's transfer agent, providing information to the MPAM Clients concerning
their investments in the Fund, and responding to inquiries regarding the Funds
from the MPAM Clients.
You will supply office facilities (which may be in your own offices),
data processing services, clerical, accounting and bookkeeping services,
internal auditing and legal services, internal executive and administrative
services, and stationery and office supplies; and prepare reports to the Fund's
stockholders, tax returns, reports to and filings with the Securities and
Exchange Commission and state Blue Sky authorities; and calculate the daily net
asset value of the Fund's shares in accordance with the Fund's Declaration of
Trust and then-current registration statement. In addition, you will pay the
fees and expenses of the Fund's transfer agent.
You shall exercise your best judgment in rendering the services to be
provided hereunder and the Fund agrees as an inducement to your undertaking the
same that you shall not be liable hereunder for any error of judgment or mistake
of law or for any loss suffered by the Fund, provided that nothing herein shall
be deemed to protect or purport to protect you against any liability to the Fund
or to its security holders to which you would otherwise be subject by reason of
willful misfeasance, bad faith or gross negligence in the performance of your
duties hereunder, or by reason of your reckless disregard of your obligations
and duties hereunder.
In consideration of the services rendered pursuant to this Agreement,
the Fund will pay you a fee calculated daily and paid monthly at the annual rate
of the following percentages of the Fund's aggregate average daily net assets:
0.15% of such assets through $6 billion; 0.12% of such assets greater than $6
billion through $12 billion; and 0.10% of such assets greater than $12 billion.
No fee shall be applied to assets held by the MPAM Balanced Fund which are
invested in (i) cash or money market instruments or (ii) shares of the other
series of the Fund.
Net asset value shall be computed on such days and at such time or
times as described in the Fund's then -current Prospectus and Statement of
Additional Information. The fee for the period from the date of the commencement
of the public sale of the Fund's shares to the end of the month during which
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such sale shall have been commenced shall be pro-rated according to the
proportion which such period bears to the full monthly period, and upon any
termination of this Agreement before the end of any month, the fee for such part
of a month shall be pro-rated according to the proportion which such period
bears to the full monthly period and shall be payable upon the date of
termination of this Agreement.
For the purpose of determining fees payable to you, the value of the
Fund's net assets shall be computed in the manner specified in the Fund's
charter documents for the computation of the value of the Fund's net assets.
You will bear all expenses in connection with the performance of its
services under this Agreement. All other expenses to be incurred in the
operation of the Fund will be borne by the Fund, except to the extent
specifically assumed by you or the Adviser. The expenses to be borne by the Fund
include, without limitation, the following: organizational costs, taxes,
interest, loan commitment fees, interest and distributions paid on securities
sold short, brokerage fees and commissions, if any, fees of Board members who
are not officers, directors, employees or holders of 5% or more of the
outstanding voting securities of the Adviser or you or any of the Adviser's or
your affiliates, Securities and Exchange Commission fees, except those share
registration fees paid during the Fund's first year of operation, which shall be
paid by you, and state Blue Sky qualification fees, advisory and administration
fees, charges of custodians, insurance premiums, industry association fees,
outside auditing and legal expenses, costs of maintaining the Fund's existence,
costs of independent pricing services, costs of shareholders' reports and
corporate meetings, costs of preparing and printing certain prospectuses and
statements of additional information for regulatory purposes and for
distribution to existing shareholders, and any extraordinary expenses.
The Fund understands that you may act as administrator of various
investment companies and fiduciary or other managed accounts, and the Fund has
no objection to your so acting. In addition, it is understood that the persons
employed by you to assist in the performance of duties hereunder will not devote
their full time to such service and nothing contained herein shall be deemed to
limit or restrict the right of you or the right of any of your affiliates to
engage in and devote time and attention to other businesses or to render
services of whatever kind or nature.
Any person, even though also your officer, director, partner, employee
or agent, who may be or become an officer, Board member, or employee of the
Fund, shall be deemed, when acting in the capacity of officer, Board member or
employee of the Fund, to be rendering such services to or acting solely for the
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Fund and not as your officer, director, partner, employee, or agent or one under
your control or direction even though paid by you.
This Agreement shall continue until June 1, 2002 and thereafter shall
continue automatically for successive annual periods ending on June 1 of each
year, provided such continuance is specifically approved at least annually by
(i) the Fund's Board or (ii) vote of a majority (as defined in the Investment
Company Act of 1940) of the Fund's outstanding voting securities, provided that
in either event its continuance also is approved by a majority of the Fund's
Board members who are not "interested persons" (as defined in said Act) of any
party to this Agreement, by vote cast in person at a meeting called for the
purpose of voting on such approval. This Agreement is terminable without
penalty, on 60 days' notice, by the Fund's Board or by vote of holders of a
majority of the Fund's shares or, upon not less than 90 days' notice, by you.
This Agreement also will terminate automatically in the event of its assignment
(as defined in said Act).
The Fund recognizes that from time to time your directors, officers and
employees may serve as directors, trustees, partners, officers and employees of
other corporations, business trusts, partnerships and other entities (including
other investment companies) and that your corporation or its affiliates may
enter into administration or other agreements with such other entities. If you
cease to act as the Fund's administrator, the Fund agrees that, at your request,
the Fund will take all necessary action to change the name of the Fund to a name
not including "MPAM" or "Mellon Private Asset Management" in any form or
combination of words.
This Agreement has been executed on behalf of the Fund by the
undersigned officer of the Fund in his capacity as an officer of the Fund. The
obligations of this Agreement shall only be binding upon the assets and property
of the Fund and shall not be binding upon any Board member, officer or
shareholder of the Fund individually.
If the foregoing is in accordance with your understanding, will you
kindly so indicate by signing and returning to us the enclosed copy hereof.
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Very truly yours,
MPAM FUNDS TRUST
By: /s/ Xxxx Xxxxxxxxxx
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Xxxx Xxxxxxxxxx
Accepted:
MELLON BANK, N.A.
By: /s/ Xxxxx X. Xxxxxx
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Xxxxx X. Xxxxxx
