Exhibit (h)(2)
Administrative Agreement Between
Money Management Associates
and
Rushmore Services, Inc.,
as amended
AGREEMENT
This Agreement by and between Money Management Associates, a District
of Columbia limited partnership located at Palm Beach Gardens, Florida ("MMA")
and Rushmore Services, Inc., a Maryland corporation located at 0000 Xxxxxxxx
Xxxxxx, Xxxxxxxx, Xxxxxxxx 00000 ("RSI,'). This Agreement is made and entered
into on the 1st day of October 1994.
WITNESSETH
WHEREAS MMA provides investment advisory services to mutual funds;
those mutual funds currently being advised by MMA are: Fund for Tax-Free
Investors, Inc., The Rushmore Fund, Inc., Fund for Government Investors, and
American Gas Index Fund, Inc.; MMA provides administrative services to the
Xxxxxxxxx-Xxxxxxxx Trust (collectively the "Mutual Funds"); and
WHEREAS RSI provides administrative services to MMA in connection with
its management, promotion and distribution of Mutual Funds; and
IT IS the purpose of this Agreement to clearly define the obligations
of each of the parties hereto with respect to services rendered by RSI.
NOW THEREFORE in consideration of the mutual promises herein exchanged
the parties agree as follows:
1. RSI shall provide the administrative services as set forth above to
MMA. It shall also execute trades and monitor portfolios for the Mutual Funds.
It shall maintain MMA records in Bethesda, Maryland at its offices and assemble,
prepare and file required reports with the Securities and Exchange Commission
and the Office of Thrift Supervision.
2. MMA shall pay a monthly service fee to RSI of $82,350.00 which is
intended to compensate RSI for management of the Mutual Funds, salary, rental
expense, and profit. Additional expenses which are reimbursable include, but are
not limited to, advertising, promotion, distribution, professional fees,
telephone, postage and travel expense. The monthly service fee shall be paid at
the beginning of each month and the reimbursement shall be paid as billed
monthly. Payments will be first allocated to the service fee and then to
reimbursement.
3. The term of this Agreement shall be one year beginning on the 1st
day of January, 1995. This Agreement shall be automatically renewed between the
parties on an annual basis unless within thirty (30) days of an annual
termination date notice is given by one party or the other of its intention not
to renew.
4. The monthly fee, however, shall be renegotiable annually between the
parties. In the event that the parties cannot come to an agreement on the amount
of the monthly fee thirty (30) days in advance of the termination of the current
annual contract, such failure to agree shall constitute a termination notice of
the contract.
5. Any dispute or disagreement arising between MMA and RSI in
conjunction with any provision of this Agreement, or the compliance or
non-compliance therewith, which is not settled within thirty (30) days (or such
period as may be mutually agreed upon) from the date that either party informs
the other in writing that such dispute or disagreement exists, shall be settled
by arbitration in accordance with rules set by a three member panel, one member
each selected by MMA and RSI and the third being an attorney selected by mutual
agreement of MMA and RSI, with all charges submitted by said attorney to be
shared equally by MMA and RSI. The decision of the panel shall be by majority
vote and final and not subject to judicial review, and judgment may be entered
thereon in accordance with applicable law in any court having jurisdiction
thereof.
6. All notices, demands and other communications required or permitted
to be given hereunder shall be made in writing and shall be deemed to be duly
given if personally delivered or if deposited in the United States mail,
registered or certified mail, with postage prepaid, and addressed to the
appropriate party at the address set forth below, or at such other address as
the parties may designate in writing delivered in accordance with the provisions
of this paragraph.
If to MMA:
Money Management Associates
X.X. Xxx 00000
Xxxx Xxxxx Xxxxxxx, Xxxxxxx 00000
Attention: Xxxxxx X. X'Xxxxxx
2
If to RSI:
Rushmore Services, Inc.
0000 Xxxxxxxx Xxxxxx
Xxxxxxxx, Xxxxxxxx 00000
Attention: Xxxxxx X. X'Xxxxxx
7. This Agreement is intended by the parties as a full expression of
their agreement with respect to the subject matter hereof and a complete and
exclusive statement of the terms thereof. No course of prior dealings between
the parties and no usage of trade shall be relevant or admissible to supplement,
explain, or vary any of the terms of this Agreement. Acceptance of, or
acquiescence in, a course of performance rendered under this Agreement shall not
be relevant or admissible to vary the terms and meaning of this Agreement, even
though the accepting or acquiescing party has knowledge of the nature of the
performance and the opportunity to make objection. No representations,
undertakings, or agreements have been made or relied upon in the making of this
Agreement other than those specifically set forth herein.
8. This Agreement shall be governed by and construed in accordance with
the laws of the State of Maryland and shall be binding upon and shall inure to
the benefit of the parties hereto.
3
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the date first above written.
WITNESS: MONEY MANAGEMENT ASSOCIATES
/s/ Xxxxxxxxx X. Xxxxx /s Xxxxxx X. X'Xxxxxx
By: Xxxxxxxxx X. Xxxxx By: Xxxxxx X. X'Xxxxxx
General Partner
WITNESS: RUSHMORE SERVICES, INC.
/s/ Xxxxxxxxx X. Xxxxx /s/ Xxxxxx X. X'Xxxxxx
By: Xxxxxxxxx X. Xxxxx By: Xxxxxx X. X'Xxxxxx
Vice President and Secretary
4
AMENDMENT
TO
AGREEMENT BETWEEN
MONEY MANAGEMENT ASSOCIATES
AND
RUSHMORE SERVICES, INC.
The following amendment is hereby made to the Agreement dated October 1, 1994
between Money Management Associates and Rushmore Services, Inc. The following
paragraphs shall replace in their entirety paragraphs (2) and (3) of the
original Agreement:
2. MMA shall pay a monthly service fee to RSI of $63,500.00 which is
intended to compensate RSI for management of the Mutual Funds, salary, rental
expense, and profit. Additional expenses which are reimbursable include, but are
not limited to, advertising, promotion, distribution, professional fees,
telephone, postage and travel expense. The monthly service fee shall be paid at
the beginning of each month and the reimbursement shall be paid as billed
monthly. Payments will be first allocated to the service fee and then to
reimbursement.
3. he term of this Agreement shall be one year beginning on the 1st day
of January, 1996. This Agreement shall be automatically renewed between the
parties on an annual basis unless within thirty (30) days of an annual
termination date notice is given by one party or the other of its intention not
to renew.
WITNESS: MONEY MANAGEMENT ASSOCIATES
/s/ Xxxxxxxxx X. Xxxxx /s Xxxxxx X. X'Xxxxxx
By: Xxxxxxxxx X. Xxxxx By: Xxxxxx X. X'Xxxxxx
General Partner
WITNESS: RUSHMORE SERVICES, INC.
/s/ Xxxxxxxxx X. Xxxxx /s/ Xxxxxx X. X'Xxxxxx
By: Xxxxxxxxx X. Xxxxx By: Xxxxxx X. X'Xxxxxx
Vice President and
Secretary
December 24, 1995
AMENDMENT
TO
AGREEMENT BETWEEN
MONEY MANAGEMENT ASSOCIATES
AND
RUSHMORE SERVICES, INC.
The following amendment is hereby made to the Agreement dated October
1, 1994 between Money Management Associates and Rushmore Services, Inc. The
following paragraphs shall replace in their entirety paragraphs (2) and (3) of
the amended
Agreement:
2. MMA shall pay a monthly service fee to RSI of $56,000.00 which is
intended to compensate RSI for management of the Mutual Funds. salary, rental
expense, and profit. Additional expenses which are reimbursable include, but are
not limited to, advertising, promotion, distribution, professional fees,
telephone, postage and travel expense. The monthly service fee shall be paid at
the beginning of each month and the reimbursement shall be paid as billed
monthly. Payments will be first allocated to the service fee and then to
reimbursement.
3. The term of this Agreement shall be one year beginning on the 1st
day of January, 1997. This Agreement shall be automatically renewed between the
parties on an annual basis unless within thirty (30) days of an annual
termination date notice is given by one party or the other of its intention not
to renew. WITNESS: MONEY MANAGEMENT ASSOCIATES
/s/ Xxxxxxxxx X. Xxxxx /s Xxxxxx X. X'Xxxxxx
By: Xxxxxxxxx X. Xxxxx By: Xxxxxx X. X'Xxxxxx
General Partner
WITNESS: RUSHMORE SERVICES, INC.
/s/ Xxxxxxxxx X. Xxxxx /s/ Xxxxxx X. X'Xxxxxx
By: Xxxxxxxxx X. Xxxxx By: Xxxxxx X. X'Xxxxxx
Vice President and
Secretary
December 23, 1996
AMENDMENT
TO
AGREEMENT BETWEEN
MONEY MANAGEMENT ASSOCIATES
AND
RUSHMORE SERVICES, INC.
The following amendment is hereby made to the Agreement dated October
1, 1994 between Money Management Associates and Rushmore Services, Inc. The
following paragraph shall replace in their entirety paragraphs (2) and (3) of
the amended Agreement:
2. MMA shall pay a monthly service fee to RSI of $75,000.00 which is
intended to compensate RSI for management of the Mutual Funds, salary, rental
expense, and profit. Additional expenses which are reimbursable include, but are
not limited to, advert) promotion, distribution, professional fees, telephone,
postage and travel expense. The monthly service fee shall be paid at the
beginning of each month and the reimbursement shall be billed monthly. Payments
will be first allocated to the service fee and then to reimbursement.
3. The term of this Agreement shall be six months beginning on the 1st
day of 1997. This Agreement shall be automatically renewed between the parties
on an annual unless within thirty (30) days of an annual termination date notice
is given by one party o other of its intention not to renew.
WITNESS: MONEY MANAGEMENT ASSOCIATES
/s/ Xxxxxxxxx X. Xxxxx /s Xxxxxx X. X'Xxxxxx
By: Xxxxxxxxx X. Xxxxx By: Xxxxxx X. X'Xxxxxx
General Partner
WITNESS: RUSHMORE SERVICES, INC.
/s/ Xxxxxxxxx X. Xxxxx /s/ Xxxxxx X. X'Xxxxxx
By: Xxxxxxxxx X. Xxxxx By: Xxxxxx X. X'Xxxxxx
Vice President and
Secretary
June 30, 1997
AMENDMENT
TO
AGREEMENT BETWEEN
MONEY MANAGEMENT ASSOCIATES
AND
RUSHMORE SERVICES, INC.
The following amendment is hereby made to the Agreement dated October
1, 1994 between Money Management Associates and Rushmore Services, Inc. The
following paragraphs shall replace in their entirety paragraphs (2) and (3) of
the amended Agreement:
2. MMA shall pay a monthly service fee to RSI of $60,000.00 which is
intended to compensate RSI for management of the Mutual Funds, salary, rental
expense, and profit. Additional expenses which are reimbursable include, but are
not limited to, advertising, promotion, distribution, professional fees,
telephone, postage and travel expense. The monthly service fee shall be paid at
the beginning of each month and the reimbursement shall be paid as billed
monthly. Payments will be first allocated to the service fee and then to
reimbursement.
3. The term of this Agreement shall be one year beginning on the 1st
day of January, 1998. This Agreement shall be automatically renewed between the
parties on an annual basis unless within thirty (30) days of an annual
termination date notice is given by one party or the other of its intention not
to renew.
WITNESS: MONEY MANAGEMENT ASSOCIATES
/s/ Xxxxxxxxx X. Xxxxx /s Xxxxxx X. X'Xxxxxx
By: Xxxxxxxxx X. Xxxxx By: Xxxxxx X. X'Xxxxxx
General Partner
WITNESS: RUSHMORE SERVICES, INC.
/s/ Xxxxxxxxx X. Xxxxx /s/ Xxxxxx X. X'Xxxxxx
By: Xxxxxxxxx X. Xxxxx By: Xxxxxx X. X'Xxxxxx
Vice President and
Secretary
December 31, 1997
