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Exhibit 8B
June 20, 1996
XXXXX TREASURY FUND
RE: CUSTODIAN SERVICES FEES
Dear Sir/Madam:
This letter constitutes the agreement between us with respect to
compensation to be paid to PNC Bank, National Association ("PNC Bank") under the
terms of a Custodian Services Agreement dated June 20, 1996 between PNC Bank and
Xxxxx Treasury Fund ("you" or the "Fund"). Pursuant to Paragraph 11 of that
Agreement, and in consideration of the services to be provided to each of the
Fund's investment portfolios listed on Exhibit A of the Agreement, as such
Exhibit A may be amended from time to time (each, a "Portfolio"), you will pay
PNC Bank the following:
1. With respect to each portfolio, an annual custody fee of .015% for
the first $100 million of average gross assets; and .01% of the average gross
assets in excess of $100 million; exclusive of out-of-pocket expenses and
transaction charges. Custody fees shall be calculated daily and paid monthly.
2. A transaction charge of $29.00 for each purchase or sale of a
physical security or delivery of a physical security upon its maturity date or
delivery of a physical security for reissuance; $10.00 for each purchase, sale,
free receive or free deliver, or maturity or other book-entry transaction with
respect to a Federal book-entry security, DTC eligible security, other
book-entry security (other than a GNMA security) or a direct commercial paper
issue; $18.00 for each purchase, sale, free receive or free delivery, or
maturity or other book-entry transaction with respect to a GNMA security; $30.00
for each purchase, sale, exercise or expiration of an option contract position
(round trip); $50.00 for each purchase, sale, exercise or expiration of a
futures contract position (round trip); and $15.00 for each repurchase trade
collateral tranche received from an institution other than PNC Bank (round
trip).
3. PNC Bank's out-of-pocket expenses including, but not limited to,
overnight express charges, Federal Reserve wire fees and global sub-custody
services.
4. With respect to the per portfolio daily net overdrawn cash balances,
a monthly charge shall be assessed based on the average federal funds rate for
that month.
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5. PNC Bank will sweep any net excess cash balances daily into an
investment vehicle designated in writing by the Fund and agreed to by PNC Bank
and will credit the Fund with such sweep earnings on a monthly basis. PNC Bank
will be paid .25% of assets swept.
6. The minimum monthly fee shall be $1,250 for each portfolio,
exclusive of out-of-pocket expenses and transaction charges. The minimum monthly
fee for each Portfolio with respect to such Portfolio's first year of
operations, exclusive of out-of-pocket expenses and transaction charges, shall
be waived for start-up portfolios in accordance with the following step-in
schedule:
Month Number Minimum Monthly
(from start of operations) Fee Waivers
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1-2 100%
3 90%
4 80%
5 70%
6 60%
7 50%
8 40%
9 30%
10 20%
11 10%
12 0%
If during the next three years, PNC Bank is removed from the Agreement
referenced above, the Fund shall pay any costs of time and material associated
with the deconversion and PNC Bank will recoup 100% of the fees waived during
the first two years.
The fee for the period from the day of the year this fee letter is
entered into until the end of that year shall be prorated according to the
proportion which such period bears to the full annual period.
If the foregoing accurately sets forth our agreement and you intend to
be legally bound thereby, please execute a copy of this letter and return it to
us.
Very truly yours,
PNC BANK, NATIONAL ASSOCIATION
XXXXX XXXXX
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By: Xxxxx Xxxxx
Title: Senior Vice President
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Accepted:
XXXXX TREASURY FUND
XXXX X. XXXXXXXXX
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By: Xxxx X. Xxxxxxxxx
Title: President
