EXHIBIT 9.1
FUND ADMINISTRATION AGREEMENT
ANALYTIC OPTIONED EQUITY FUND, INC.
AGREEMENT made as of May 16th, 1997 by and between Analytic Optioned
Equity Fund, Inc., a corporation organized under the laws of the State of
California (the "Fund"), and UAM Fund Services, Inc., a Delaware corporation
(the "Administrator").
WITNESSETH:
WHEREAS, the Fund is registered as a diversified, open-end, management
investment company under the Investment Company Act of 1940, as amended (the
1940 Act"); and
WHEREAS, the Fund wishes to retain the Administrator to provide certain
transfer agent, fund accounting and administration services with respect to the
Fund, and the Administrator is willing to furnish or provide for the furnishing
of such services;
NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, it is agreed between the parties hereto as follows:
1. Appointment. The Fund hereby appoints the Administrator to provide
transfer agent, fund accounting and fund administration services to the Fund,
subject to the supervision of the Board of Directors of the Fund (the "Board"),
for the period and on the terms set forth in this Agreement. The Administrator
accepts such appointment and agrees to furnish the services herein set forth in
return for the compensation as provided in Paragraph 4 of this Agreement. The
Fund presently issues shares of beneficial interest in one or more series each
representing separate interests in a portfolio of investments and cash.
Hereinafter, each such series shall be referred to as a "Portfolio." The term
"Portfolio" as hereinafter used shall be deemed to include not only separate
series of the Fund, but also separate classes of series of the Fund. The Fund
shall notify the Administrator in writing of each additional Portfolio
established by the Fund. Each new Portfolio shall be subject to the provisions
of this Agreement, except to the extent that said provisions (including those
relating to the compensation and expenses payable by the Fund and its
Portfolios) may be modified with respect to such new Portfolio in writing by the
Fund and the Administrator at the time of the addition of such new Portfolio.
2. Delivery of Documents. The Fund will upon request furnish the
Administrator with copies, properly certified or authenticated, of each
of the following in their most current form:
(a) Resolutions of the Fund's Board authorizing the appointment of
the Administrator to provide certain transfer agency, fund accounting and
administration services to the Fund and approving this Agreement;
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(b) The Fund's Articles of Incorporation ("Articles");
(c) The Fund's Bylaws ("Bylaws");
(d) The Fund's Notification of Registration of Form N-8A under the
1940 Act as filed with the Securities and Exchange Commission ("SEC");
(e) The Fund's Registration Statement. as amended, on Form
N-1A (the "Registration Statement") under the Securities Act of 1933 and
the 1940 Act, as filed with the SEC; and
(f) The Fund's most recent Prospectuses and Statements of Additional
Information and supplements thereto (such Prospectuses and Statements of
Additional Information and supplements thereto, as presently in effect and as
from time to time hereafter amended and supplemented, herein called the
"Prospectuses").
The Fund will furnish the Administrator from time to time with
copies, properly certified or authenticated, of all amendments of or supplements
to the foregoing, if any.
3. Services Provided by the Administrator. The Administrator will provide
the following services subject to the control, direction and supervision of the
Board, and in compliance with the objectives, policies and limitations set forth
in the Fund's Registration Statement. Bylaws and applicable laws and
regulations.
(a) General Administration. Unless otherwise provided by the adviser
to the Fund, the Administrator shall manage, administer and conduct the general
business activities of the Fund other than those which have been contracted to
other third parties by the Fund as of the date hereof. The Administrator shall
provide the personnel and facilities necessary to perform such general business
activities. A detailed description of these services is included in Attachment A
to this Agreement.
(b) Fund Accounting. The Administrator shall provide the following
accounting services to the Fund: (i) maintenance of the books and records and
accounting controls for the Fund's assets, including records of all securities
transactions; (ii) calculation of the Portfolios' net asset values in accordance
with the Prospectuses and, if requested by the Fund, transmission of the net
asset values to the NASD for publication of prices; (iii) accounting for
dividends, interest and other income received and distributions made by the
Fund; (iv) preparation and filing of the Fund's state and federal tax returns
and Semi-Annual Reports on Form N-SAR; (v) production of transaction data,
financial reports and such other periodic and special reports as the Board may
reasonably request; (vi) the preparation of financial statements for the
semi-annual and annual reports and other shareholder communications; (vii)
liaison with the Fund's independent auditors; and (viii) monitoring and
administration of arrangements with the Fund's
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custodian and depository banks. A complete listing of reports that will be
available to the Fund is included in Attachment B of this Agreement.
(c) Transfer Agent. The Administrator shall:
(i) Maintain records showing for each Fund shareholder the
following: (A) name, address and tax identifying number; (B) number of shares
held of any Portfolio of the Fund; (C) historical information including
dividends paid and the date and price of all transactions including individual
purchases and redemptions: and (D) any dividend reinvestment order, application,
dividend address and correspondence relating to the current maintenance of the
account.
(ii) Record the issuance of shares of common stock of the Fund
and shall notify the Fund in case any proposed issue of shares by the Fund shall
result in an over-issue as identified by Section 8-104(2) of the Uniform
Commercial Code and in case any issue would result in such an over-issue, shall
refuse to countersign and issue, and/or credit, said shares. Except as
specifically agreed in writing between the Administrator and the Fund, the
Administrator shall have no obligation when countersigning and issuing and/or
crediting shares, to take cognizance of any other laws relating to the issue and
sale of such shares except insofar as policies and procedures of the Stock
Transfer Association recognize such laws.
(iii) Process all orders for the purchase of shares of the
Fund in accordance with the Fund's current Registration Statement. Upon receipt
of any check or other payment for purchase of shares of the Fund from an
investor, it will: (A) stamp the envelope with the date of receipt; (B)
forthwith process the same for collection; and (C) determine the amounts thereof
due the Fund, and notify the Fund of such determination and deposit, such
notification to be given on a daily basis of the total amounts determined and
deposited to the Fund's custodian bank account during such day. The
Administrator shall then credit the share account of the investor with the
number of shares to be purchased according to the price of the Fund's shares in
effect for purchases made on the date such payment is received by the
Administrator, determined as set forth in the Fund's current Prospectuses, and
shall promptly mail a confirmation of said purchase to the investor, all subject
to any instructions which the Fund may give to the Administrator with respect to
the timing or manner of acceptance of orders for shares relating to payments so
received by it.
(iv) Receive and stamp with the date of receipt all requests
for redemptions or repurchase of shares held in certificate or non-certificate
form and shall process redemptions and repurchase requests as follows: (A) if
such certificate or redemption request complies with the applicable standards
approved by the Fund, the Administrator shall on each business day notify the
Fund of the total number of shares presented and covered by such requests
received by the Administrator on such day; (B) on or prior to the seventh
calendar day succeeding any such request for redemption, the Administrator shall
notify the custodian, subject to the instructions from the Fund, to
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transfer monies to such account as designated by the Administrator for such
payment to the redeeming shareholder of the applicable redemption or repurchase
price; (C) if any such certificate or request for redemption or repurchase does
not comply with applicable standards, the Administrator shall promptly notify
the investor of such fact, together with the reason therefor, and shall effect
such redemption at the relevant Portfolio's price next determined after receipt
of documents complying with said standards or at such other time as the Fund
shall so direct.
(v) Acknowledge all correspondence from shareholders relating
to their share accounts and undertake such other shareholder correspondence as
may from time to time be mutually agreed upon.
(vi) Process redemptions, exchanges and transfers of Fund
shares upon telephone instructions from qualified shareholders in accordance
with the procedures set forth in the Fund's current Prospectuses. The
Administrator shall be permitted to act upon the instruction of any person by
telephone to redeem, exchange and/or transfer Fund shares from any account for
which such services have been authorized. The Fund hereby agrees to indemnify
and hold the Administrator harmless against all losses. costs or expenses,
including attorneys' fees and expenses suffered or incurred by the Administrator
directly or indirectly as a result of relying on the telephone instructions of
any person acting on behalf of a shareholder account for which telephone
services have been authorized. However, the Administrator shall not be liable to
the Fund for any returned checks or other order for the payment of money if it
follows reasonable procedures with respect thereto.
(vii) Transfer on the records of the Fund maintained by it,
shares represented by certificates. as well as issued shares held in
non-certificate form, upon the surrender to it of the certificate or, in the
case of non-certificated shares, comparable transfer documents in proper form
for transfer and, upon cancellation thereof to countersign and issue new
certificates or other documents of ownership for a like amount of stock and to
deliver the same pursuant to the transfer instructions.
(viii) Supply, at the expense of the Fund, a supply of
continuous form blank stock certificates. Such blank stock certificates shall be
properly signed, manually or by facsimile, as authorized by the Fund, and shall
bear the Fund's corporate seal or facsimile thereof, and notwithstanding the
death, resignation or removal of any officers of the Fund authorized to sign
certificates of stock, the Administrator may, until otherwise directed by the
Fund, continue to countersign certificates which bear the manual or facsimile
signature of such officer.
(ix) Upon the request of a shareholder of the Fund who
requests a certificate representing his shares, countersign and mail by first
class mail a share certificate to the investor at his address as set forth on
the transfer books of the Fund.
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(x) In the event that any check or other order for the payment
of money is returned unpaid for any reason, take such steps, including
redepositing said check for collection or returning said check to the investor,
as the Administrator may at its discretion, deem appropriate and notify the Fund
of such action, unless the Fund instructs otherwise. However, the Administrator
shall not be liable to the Fund for any returned checks or other order for the
payment of money if it follows reasonable procedures with respect thereto.
(xi) Prepare, file with the Internal Revenue Service, and mail
to shareholders such returns for reporting payment of dividends and
distributions as are required by applicable laws to be so filed and/or mailed,
and the Administrator shall withhold such sums as are required to be withheld
under applicable Federal income tax laws, rules and regulations.
(xii) Mail proxy statements, proxy cards and other materials
and shall receive, examine and tabulate returned proxies. The Administrator
shall make interim reports of the status of such tabulation to the Fund upon
request, and shall certify the final results of the tabulation.
(d) Dividend Disbursing. The Administrator shall act as Dividend
Disbursing Agent for the Fund, and, as such, shall prepare and mail checks or
credit income and capital gain payments to shareholders. The Fund shall advise
the Administrator of the declaration of any dividend or distribution and the
record and payable date thereof at least five (5) days prior to the record date.
The Administrator shall, on or before the payment date of any such dividend or
distribution, notify the Fund's custodian of the estimated amount required to
pay any portion of said dividend or distribution which is payable in cash, and
on or before the payment date of such distribution, the Fund shall instruct its
custodian to make available to the Administrator sufficient funds for the cash
amount to be paid out. If a shareholder is entitled to receive additional shares
by virtue of any such distribution or dividend, appropriate credits will be made
to his account and/or certificates delivered where requested. A shareholder not
electing issuance of certificates will receive a confirmation from the
Administrator indicating the number of shares credited to his account.
(e) Miscellaneous. Unless otherwise provided by the adviser
to the fund, the Administrator will also:
(i) Provide office facilities (which may be in the offices of
the Administrator or a corporate affiliate of them, but shall be in such
location as the Fund shall reasonably approve) and the services of a principal
financial officer to be appointed by the Fund;
(ii) Furnish statistical and research data, clerical
services and stationery and office supplies;
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(iii) Assist in the monitoring of regulatory and legislative
developments which may affect the Fund and, in response to such developments,
counsel and assist the Fund in routine regulatory examinations or investigations
of the Fund and work with outside counsel to the Fund in connection with
regulatory matters or litigation.
(iv) In performing its duties: (A) will act in accordance with
the Fund's Articles. Bylaws Prospectuses and the instructions and directions of
the Board and will conform to. and comply with, except as otherwise provided
herein, the requirements of the 1940 Act and all other applicable federal or
state laws and regulations: and (B) will consult with outside legal counsel to
the Fund, as necessary or appropriate.
(v) Preserve for the periods prescribed by Rule 31 a-2 under
the 1940 Act the records required to be maintained by Rule 31a-1 under said Act
in connection with the services required to be performed hereunder. The
Administrator further agrees that all such records which it maintains for the
Fund are the property of the Fund and further agrees to surrender promptly to
the Fund any of such records upon the Fund's request. Upon such request the
Administrator will surrender such records in a mutually agreeable electronic
format.
(vi) Upon request, provide a copy of all historical data
related to the Fund in a mutually agreeable electronic format.
(f) The Administrator may, at its expense and discretion,
subcontract with any entity or person concerning the provisions of the services
contemplated hereunder. The Administrator will provide prompt notice of such
delegation and provide copies of such subcontracts to the Fund; provided, that
such subcontract shall not discharge the Administrator from its obligations
hereunder or delegation of duties to another third party.
4. Fees; Expenses; Expense Reimbursement.
(a) For the services rendered for the Fund pursuant to this
Agreement, the Administrator shall be entitled to a fee based on the average net
assets of the Fund determined at the annual rate outlined in Attachment C of
this Agreement and applied to the average daily net assets of the Fund. Such
fees are to be computed daily and paid monthly on the first business day of the
following month. Upon any termination of this Agreement before the end of any
month, the fee for such part of the month shall be prorated 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.
(b) For the purpose of determining fees payable to the
Administrator, the value of the Fund's net assets shall be computed as required
by its Prospectuses, generally accepted accounting principles and resolutions of
the Board.
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(c) The Administrator will from time to time employ or associate
with such person or persons as may be fit to assist them in the performance of
this Agreement. Such person or persons may be officers and employees who are
employed by both the Administrator and the Fund. The compensation of such person
or persons for such employment shall be paid by the Administrator and no
obligation will be incurred by or on behalf of the Fund in such respect.
(d) The Administrator will bear all expenses in connection with the
performance of its services under this Agreement except as otherwise expressly
provided herein. Other expenses to be incurred in the operation of the Fund will
be borne by the Fund or other parties, including taxes, interest, brokerage fees
and commissions, if any, salaries and fees of officers and members of the Board
who are not officers, directors, shareholders or employees of the Administrator,
or the Fund's investment adviser or distributor, SEC fees and state Blue Sky
fees, XXXXX filing fees, processing services and related fees, advisory and
administration fees, charges and expenses of pricing and data services,
independent public accountants and custodians, insurance premiums including
fidelity bond premiums, outside legal expenses, costs of maintenance of
corporate existence, typesetting and printing of prospectuses for regulatory
purposes and for distribution to current shareholders of the Fund, printing and
production costs of shareholders' reports and corporate meetings, cost and
expenses of Fund stationery and forms; costs of special telephone and data lines
and devices; trade association dues and expenses; and any extraordinary expenses
and other customary Fund expenses; provided, however, that, except as provided
in any distribution plan adopted by the Fund, the Fund will not bear, directly
or indirectly, the cost of any activity which is primarily intended to result in
the distribution of shares of the Fund. In addition, the Administrator may
utilize one or more independent pricing services, approved from time to time by
the Board, to obtain securities prices in connection with determining the net
asset values of the Fund, and the Fund will reimburse the Administrator for its
share of the cost of such services based upon its actual use of the services for
the benefit of the Fund.
5. Proprietary and Confidential Information The Administrator agrees on
behalf of itself and its employees to treat confidentially and as proprietary,
information of the Fund, all records and other information relative to the
Fund's prior, present or potential shareholders, and not to use such records and
information for any purpose other than performance of their responsibilities and
duties hereunder, except after prior notification to and approval in writing by
the Fund, which approval shall not be unreasonably withheld and may not be
withheld where the Administrator may be exposed to civil or criminal contempt
proceedings for failure to comply, when requested to divulge such information by
duly constituted authorities, or when so requested by the Fund. Waivers of
confidentiality are automatically effective without further action by the
Administrator with respect to Internal Revenue levies, subpoenas and similar
actions, or with respect to any request by the Fund.
6. Duties, Responsibilities and Limitation of Liability.
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(a) In the performance of its duties hereunder, the Administrator
shall be obligated to exercise due care and diligence and to act in good faith
in performing the services provided for under this Agreement. In performing its
services hereunder, the Administrator shall be entitled to rely on any oral or
written instructions, notices or other communications from the Fund and its
custodians, officers and directors, investors, agents, legal counsel and other
service providers which communications the Administrator reasonably believes to
be genuine, valid and authorized.
(b) Subject to the foregoing, the Administrator shall not be liable
for any error of judgment or mistake of law or for any loss or expense suffered
by the Fund, in connection with the matters to which this Agreement relates,
except for a loss or expense resulting from willful misfeasance, bad faith or
gross negligence on the Administrator's part in the performance of its duties or
from reckless disregard by the Administrator of its obligations and duties under
this Agreement. Any person, even though also an officer. director, partner,
employee or agent of the Administrator, who may be or become an officer,
director, partner, employee or agent of the Fund, shall be deemed when rendering
services to the Fund or acting on any business of the Fund (other than services
or business in connection with the Administrator's duties hereunder) to be
rendering such services to or acting solely for the Fund and not as an officer,
director, partner, employee or agent or person under the control or direction of
the Administrator even though paid by the Administrator. In no event shall the
Administrator be liable to the Fund or any other party for special or
consequential loss or damage of any kind whatsoever (including but not limited
to lost profits) even if the Administrator has been advised of such loss or
damage and regardless of the form of action.
(c) The Administrator shall not be responsible for, and the Fund
shall indemnify and hold the Administrator harmless from and against, any and
all losses, damages, costs, reasonable attorneys' fees and expenses, payments,
expenses and liabilities, except for a loss or expense resulting from willful
misfeasance, bad faith or gross negligence on the Administrator's part in the
performance of its duties or from reckless disregard by the Administrator of its
obligations and duties under this Agreement, arising out of or attributable to:
(i) All actions of the Administrator or its officers,
employers or agents required to be taken pursuant to this Agreement;
(ii) The reliance on or use by the Administrator or its
officers, employers or agents of information, records, or documents which are
received by the Administrator or its officers, employers or agents and furnished
to it or them by or on behalf of the Fund, and which have been prepared or
maintained by the Fund or its officers, employees or agents;
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(iii) The Fund's refusal or failure to comply with the terms
of this Agreement or the Fund's lack of good faith, or its actions, or lack
thereof, involving gross negligence or willful misfeasance;
(iv) The taping or other form of recording of telephone
conversations or other forms of electronic communications with other agents of
the Fund, its investors and shareholders, in accordance with applicable law, or
reliance by the Administrator on telephone or other electronic instructions of
any person acting on behalf of a shareholder or shareholder account reasonably
believed to be genuine for which telephone or other electronic services have
been authorized; and
(v) The offer or sale of shares by the Fund in violation of
any requirement under the Federal securities laws or regulations or the
securities laws or regulations of any state, or in violation of any stop order
or other determination or ruling by any Federal agency or any state agency with
respect to the offer or sale of such shares in such state resulting from
activities, actions, or omissions by the Fund or its officers, employees, or
agents prior to the effective date of this Agreement.
(d) The Administrator shall indemnify and hold the Fund harmless
from and against any and all losses, damages, costs, charges, reasonable
attorneys' fees and expenses, payments, expenses and liability arising out of or
attributable to the Administrator's refusal or failure to comply with the terms
of this Agreement; the Administrator's breach of any representation or warranty
made by it herein; or the Administrator's lack of good faith, or acts involving
gross negligence, willful misfeasance or reckless disregard of its duties
hereunder.
7. Term. The Administrator will start the provision of the services
contemplated by this Agreement on the date first hereinabove written or whenever
the current service provider ceases to provide its services and the operative
terms of the Agreement will be effective for a period of one (1) year from such
date, unless sooner terminated as provided herein. Thereafter, unless sooner
terminated as provided herein, this Agreement shall continue in effect from year
to year provided such continuance is specifically approved at least annually by
the Board. This Agreement is terminable, without penalty, by the Board or by the
Administrator, on not less than ninety (90) days' written notice. Except as
provided in Section 8 hereof, this Agreement shall automatically terminate upon
its assignment by the Administrator without the prior written consent of the
Fund. Upon termination of this Agreement, the Fund shall pay to the
Administrator such compensation and any reimbursable expenses as may be due
under the terms hereof as of the date of termination or the date that the
provision of services ceases, whichever is later.
8. Non-Assignability. This Agreement shall not be assigned by
either of the parties hereto without the prior consent in writing of the
other party; provided, however, that the Administrator may in its own
discretion and without limitation or prior consent of the Fund, whenever
and on such terms and conditions as it deems necessary or
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appropriate, enter into subcontracts, agreements and understandings with
non-affiliated third parties; provided, that such subcontract, agreement or
understanding shall not discharge the Administrator from its obligations
hereunder or delegation of duties to another third party.
9. Force Majeure. The Administrator shall not be responsible or liable for
any failure or delay in performance of its obligations under this Agreement. any
damages, loss of data, or any other loss whatsoever, arising out of or caused,
directly or indirectly, by circumstances beyond its control, including without
limitation, acts of God, earthquakes fires. floods, wars. civil or military
authority or governmental actions, nor shall any such failure or delay give the
Fund the right to terminate this Agreement, unless such failure or delay shall
result in the Fund's inability to comply with the requirements of state and
federal law. Administrator shall use its best efforts to minimize any such loss
of data or delay by all practicable steps. Administrator further agrees not to
discriminate against the Fund in favor of any other customer of Administrator in
making its computer time and personnel available to input and process
transactions hereunder when such a loss or delay occurs.
10. Use of Name. The Fund and the Administrator agree not to use the
other's name nor the names of such other's affiliates, designees or assignees in
any prospectus, sales literature or other printed material written in a manner
not previously expressly approved in writing by the other or such other's
affiliates, designees or assignees except where required by the SEC or any state
agency responsible for securities regulation.
11. Notice. Any notice required or permitted hereunder shall be
in writing to the parties at the following address (or such other address
as a party may specify by notice to the other):
If to the Fund: Analytic Optioned Equity Fund
000 Xxxxx Xxxxxx Xxxxxx
Xxx Xxxxxxx, XX 00000
Attention: _______________________
If to Administrator: UAM Fund Services, Inc.
000 Xxxxxxxx Xxxxxx
Xxxxxx, XX 00000
Attn: Xxxx X. Xxxxxx, President
Notice shall be effective upon receipt if by mail, on the date of
personal delivery (by private messenger, courier service or otherwise) or upon
confirmed receipt of telex or facsimile, whichever occurs first.
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12. Waiver. The failure of a party to insist upon strict adherence to any
term of this Agreement on any occasion shall not be considered a waiver nor
shall it deprive such party of the right thereafter to insist upon strict
adherence to that term or any term of this Agreement. Any waiver must be in
writing signed by the waiving party.
13. Severability. If any provision of this Agreement is invalid or
unenforceable, the balance of the Agreement shall remain in effect, and if
any provision is inapplicable to any person or circumstance, it shall
nevertheless remain applicable to all other persons and circumstances.
14. Successor and Assigns. The covenants and conditions herein
contained shall, subject to the provisions as to assignment, apply to and
bind the successors and assigns of the parties hereto.
15. Governing Law. This Agreement shall be governed by
Massachusetts law including its choice of law provisions.
16. Amendments. This Agreement may be modified or amended from time to
time by mutual written agreement between the parties. No provision of this
Agreement may be changed, discharged, or terminated orally, but only by an
instrument in writing signed by the party against which enforcement of the
change, discharge or termination is sought.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their officers designated below as of the date indicated above.
ANALYTIC OPTIONED EQUITY FUND, INC.
By: /s/ Xxxxxxxx xx Xxxxx
----------------------------
Name: Xxxxxxxx xx Xxxxx
Title: President
UAM FUND SERVICES, INC.
By: /s/ Xxxxxxx XxXxx
----------------------------
Name: Xxxxxxx XxXxx
Title: Vice President
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Attachment A
Fund Administration Services
Compliance
Prepare and update compliance manuals and procedures.
Assist in the training of portfolio managers, management and Fund accountants
concerning compliance manuals and procedures.
Monitor each Portfolio's compliance with investment restrictions (i.e. issuer or
industry diversification, etc.) listed in the current Prospectuses and Statement
of Additional Information. (Frequency - Daily)
Monitor each Portfolio's compliance with the requirements of Internal Revenue
Code (the "Code") Section 851 for qualification as regulated investment
companies. (Frequency - Monthly)
Calculate and recommend dividend and capital gain distributions in accordance
with distribution policies detailed in the Prospectuses. (Frequency - Determined
by Prospectus)
Prepare year-end dividend and capital gain distributions to establish Fund's
status as RIC under Section 4982 of the Code regarding minimum distribution
requirements. File Federal Excise Tax Return (Form 8613). (Frequency - Annually)
Mail quarterly requests for "Securities Transaction Reports" to the Fund's
Trustees/Directors and Officers and "access persons" under the terms of the
Fund's Code of Ethics and SEC regulations.
Monitor investment manager's compliance with Board directives such as "Approved
Issuers Listings for Repurchase Agreements" and provisions of Rule 2a-7 for
money market funds. (Frequency - Daily)
Review investments involving interests in any broker, dealer, underwriter or
investment adviser to ensure continued compliance with Section 12(d)(3) of the
1940 Act. (Frequency - Quarterly)
Monitor the Fund's brokerage allocation and prepare quarterly brokerage
allocation reports for Board meetings (consistent with reporting from the
current service provider).
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Reporting
Prepare agreed upon management reports and Board materials such as unaudited
financial statements, distribution summaries and deviations of xxxx-to-market
valuation and the amortized cost for money market funds.
Report Fund performance to outside services as directed by Fund management.
Prepare and file Fund's Semi-Annual Reports on Form N-SAR with the SEC.
Prepare and file Portfolio Federal tax returns along with all state and local
tax returns and State Expense Limitation returns, where applicable.
Prepare and coordinate printing of Fund's Semi-Annual and Annual Reports to
shareholders.
File copies of every report to shareholders with the SEC under Rule 30b2-1.
Notify shareholders as to what portion, if any, of the distributions made by the
Fund during the prior fiscal year were exempt-interest dividends under Section
852(b)(5)(A) of the Code.
Provide Form 1099-MISC to persons other than corporations (i.e.,
Trustees/Directors) to whom the Fund paid more than $600 during the year.
Prepare reports relating to the Fund's compliance with respect to Section 851 of
the Code.
Administration
Serve as officers of the Fund and attend Fund Board meetings.
Prepare Fund portfolio expense projections, establish accruals and review on a
periodic basis.
Expenses based on a percentage of Fund's average daily net assets (advisory and
administrative fees).
Expenses based on actual charges annualized and accrued daily (audit fees,
registration fees, directors' fees, etc.).
For new Portfolios, obtain Employer Identification Number and CUSIP number.
Estimate organization (offering) costs and monitor against actual disbursements.
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Provide financial information for Fund proxies and Prospectuses (Expense Table).
Coordinate all communications and data collection with regards to any regulatory
examinations and yearly audit by independent accountants.
Act as liaison to investment advisors concerning new products.
Legal Affairs
Assist with preparing and updating documents, such as Articles of
Incorporation/Declaration of Trust, foreign corporation qualification filings,
Bylaws and stock certificates.
Assist with updating and filing post-effective amendments to the Fund's
registration statement on Form N-1A and prepare supplements as needed.
Assist with preparing and filing Rule 24f-2 Notice.
Assist with preparing proxy materials and administer shareholder meetings.
Assist with the review of contracts between the Fund and its service providers
(must be sensitive to conflict of interest situations).
Research technical issues and questions arising out of a Fund's special status
under the tax and securities laws and monitor legal trends, developments and
changes.
Apprise and train management and staff with respect to important legal issues.
Prepare and maintain all state registrations and exemptions of the Fund's
securities including annual renewals, registering new Portfolios, preparing and
filing sales reports, filing copies of the registration statement and final
prospectus and statement of additional information, and increasing registered
amounts of securities in individual states.
Review and monitor fidelity bond and errors and omissions insurance coverage and
make any related regulatory filings.
Assist with preparation of agenda and Board materials, including materials
relating to contract renewals, for all Board meetings.
Assist with maintaining minutes of Board and shareholder meetings.
Act as liaison with Fund's distributor and outside Fund counsel: Coordinate and
monitor the work of outside counsel.
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Respond to questions from the investment advisors concerning legal
questions relating to investments.
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Attachment B
Domestic Fund Accounting Daily Reports
A) General Ledger Reports
1. Trial Balance Report
2. General Ledger Activity Report
B) Portfolio Reports
1. Portfolio Report
2. Cost Lot Report
3. Purchase Journal
4. Sell/Maturity Journal
5. Amortization/Accretion Report
6. Maturity Projection Report
C) Pricing Reports
1. Pricing Report
2. Pricing Report by Market Value
3. Pricing Variance by % Change
4. NAV Report
5. NAV Proof Report
6. Money Market Pricing Report
D) Accounts Receivable/Payable Reports
1. Accounts Receivable for Investments Report
2. Accounts Payable for Investments Report
3. Interest Accrual Report
4. Dividend Accrual Report
E) Other
1. Dividend Computation Report
2. Cash Availability Report
3. Settlement Journal
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International Fund Accounting Daily Reports
A) General Ledger
1. Trial Balance Report
2. General Ledger Activity Report
B) Portfolio Reports
1. Portfolio Report by Xxxxxx
0. Cost Lot Report
3. Purchase Journal
4. Sell/Maturity Journal
C) Currency Reports
1. Currency Purchase/Sales Journal
2. Currency Valuation Report
D) Pricing Reports
1. Pricing Report by Country
2. Pricing Report by Market Value
3. Price Variance by % Change
4. NAV Report
5. NAV Proof Report
E) Accounts Receivable/Payable Reports
1. Accounts Receivable for Investments Sold/Matured
2. Accounts Payable for Investments Purchased
3. Accounts Receivable for Forward Exchange Contracts
4. Accounts Payable for Forward Exchange Contracts
5. Interest Receivable Valuation
6. Interest Recoverable Withholding Tax
7. Dividends Receivable Valuation
8. Dividends Recoverable Withholding Tax
F) Other
1. Exchange Rate Report
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Monthly Fund Accounting Reports
A) Standard Reports
1. Cost Proof Report
2. Transaction History Report
3. Realized Gain/Loss Report
4. Interest Record Report
5. Dividend Record Report
6. Broker Commission Totals
7. Broker Principal Trades
8. Shareholder Activity Report
9. Fund Performance Report
10. SEC Yield Calculation Work Sheet
B) International Reports
1. Forward Contract Transaction History Report
2. Currency Gain/Loss Report
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Attachment C
Fee Schedule to the Fund Administration Agreement
I. Base Fee Schedule
Fees for the services under the Fund Administration Agreement:
19 Basis Points on the 1st $200 million of total net assets of the Fund
11 Basis Points on the next $800 million of total net assets
7 Basis Points on total net assets over $1 billion up to $3 billion
5 Basis Points on total net assets over $3 billion
II. Fund-Specific Fee Schedule
All portfolios will be billed a fee of 6 Basis Points, in addition
to the Base fee in I. above.
III. Minimum Fee Schedule
All Portfolios will be billed per the above Fund-Specific Fee Schedule
plus an amount equal to the fees calculated under the Base fee schedule or
a minimum fee per the following schedule, whichever is greater:
Monthly Rate
1st 6 mos. $ 2,000
2nd 6 mos. $ 3,500
3rd 6 mos. $ 5,000
Thereafter $ 5,833
Except as otherwise indicated, all time periods are determined from the
date of a Portfolio's initial funding.
If a separate class of shares is added to an existing Portfolio, the
minimum annual fee would increase by $20,000. However, there would be no
extra charge for an additional class of shares where a Portfolio's fee
already exceeded the minimum applicable fee by $20,000.
These fees do not include out-of-pocket expenses, which under this
Agreement will be billed separately.
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