ADMINISTRATION AGREEMENT
This Agreement is made as of May 1, 1995, between Xxxxxxxxx & Xxxxxx
Advisers Management Trust, a Delaware business trust ("Trust"), and Xxxxxxxxx &
Xxxxxx Management Incorporated, a New York corporation ("Administrator").
WHEREAS, the Trust is registered under the Investment Company Act of
1940, as amended ("194O Act"), as an open-end, diversified management investment
company and has established several separate series of shares ("Portfolios"),
with each Portfolio having its own assets and investment policies; and
WHEREAS, the Trust desires to retain the Administrator to furnish
administrative services to each Portfolio listed in Schedule A attached hereto,
and to such other Portfolios of the Trust hereinafter established as agreed to
from time to time by the parties, evidenced by an addendum to Schedule A
(hereinafter "Portfolio" shall refer to each Portfolio which is subject to this
Agreement and all agreements and actions described herein to be made or taken by
a Portfolio shall be made or taken by the Trust on behalf of the Portfolio), and
the Administrator is willing to furnish such services,
NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, the parties agree as follows:
1. Services of the Administrator.
1.1 Administrative Services. The Administrator shall supervise
each Portfolio's business and affairs and shall provide such services required
for effective administration of such Portfolio as are not provided by employees
or other agents engaged by such Portfolio; provided, that the Administrator
shall not have any obligation to provide under this Agreement any direct or
indirect services to a Portfolio's shareholders, any services related to the
distribution of a Portfolio's shares, or any other services that are the subject
of a separate agreement or arrangement between a Portfolio and the
Administrator. Subject to the foregoing, in providing administrative services
hereunder, the Administrator shall:
1.1.1 Office Space, Equipment and Facilities. Furnish without
cost to each Portfolio, or pay the cost of, such office space, office equipment
and office facilities as are adequate for the Portfolio's needs;
1.1.2 Personnel. Provide, without remuneration from or other
cost to each Portfolio, the services of individuals competent to perform all of
the Portfolio's executive, administrative and clerical functions that are not
performed by employees or other agents engaged by the Portfolios or by the
Administrator acting in some other capacity pursuant to a separate agreement or
arrangement with the Portfolio;
1.1.3 Agents. Assist each Portfolio in selecting and
coordinating the activities of the other agents engaged by the Portfolio,
including the Portfolio's custodian, independent auditors and legal counsel;
1.1.4 Trustees and Officers. Authorize and permit the
Administrators directors, officers or employees who may be elected or appointed
as trustees or officers of the Trust to serve in such capacities, without
remuneration from or other cost to the Trust or any Portfolio;
1.1.5 Books and Records. Ensure that all financial, accounting
and other records required to be maintained and preserved by each Portfolio are
maintained and preserved by it or on its behalf in accordance with applicable
laws and regulations; and
1.1.6 Reports and Filings. Assist in the preparation of (but
not pay for) all periodic reports by each Portfolio to shareholders of such
Portfolio and all reports and filings required to maintain the registration and
qualification of the Portfolio and the Portfolio's shares, or to meet other
regulatory or tax requirements applicable to the Portfolio, under federal and
state securities and tax laws.
2. Expenses of each Portfolio.
2.1 Expenses to Be Paid by the Administrator. The
Administrator shall pay all salaries, expenses and fees of the officers,
trustees, or employees of the Trust who are officers, directors or employees of
the Administrator. If the Administrator pays or assumes any expenses of the
Trust or a Portfolio not required to be paid or assumed by the Administrator
under this Agreement, the Administrator shall not be obligated hereby to pay or
assume the same or any similar expense in the future; provided, that nothing
herein contained shall be deemed to relieve the Administrator of any obligation
to the Trust or to a Portfolio under any separate agreement or arrangement
between the parties.
2.2 Expenses to Be Paid by the Portfolios. Each Portfolio
shall bear all expenses of its operation, except those specifically allocated to
the Administrator under this Agreement or under any separate agreement between
such Portfolio and the Administrator. Expenses to be borne by such Portfolio
shall include both expenses directly attributable to the operation of that
Portfolio and the offering of its shares, as well as the portion of any expenses
of the Trust that is property allocable to such Portfolio in a manner approved
by the trustees of the Trust ("Trustees"). Subject to any separate agreement or
arrangement between the Trust or a Portfolio and the Administrator, the expenses
hereby allocated to each Portfolio, and not to the Administrator, include, but
are not limited to:
2.2.1 Custody. All charges of depositories, custodians, and
other agents for the transfer, receipt, safekeeping, and servicing of its cash,
securities, and other property;
2.2.2 Shareholder Servicing. All expenses of maintaining and
servicing shareholder accounts, including, but not limited to, the charges of
any shareholder servicing agent, dividend disbursing agent or other agent (other
than the Administrator hereunder) engaged by a Portfolio to service shareholder
accounts;
2.2.3 Shareholder Reports. All expenses of preparing, setting
in type, printing and distributing reports and other communications to
shareholders of a Portfolio;
2.2.4 Prospectuses. All expenses of preparing, setting in
type, printing and mailing annual or more frequent revisions of a Portfolio's
Prospectus and SAI and any supplements thereto and of supplying them to
shareholders of the Portfolio and Account holders;
2.2.5 Pricing and Portfolio Valuation. All expenses of
computing a Portfolio's NAV per share, including any equipment or services
obtained for the purpose of pricing shares or valuing the Portfolio's
investment portfolio;
2.2.6 Communications. All charges for equipment or services
used for communications between the Administrator or the Portfolio and any
custodian, shareholder servicing agent, portfolio accounting services agent, or
other agent engaged by a Portfolio;
2.2.7 Legal and Accounting Fees. All charges for services
and expenses of a Portfolio's legal counsel and independent auditors;
2.2.8 Trustees' Fees and Expenses. All compensation of
Trustees other than those affiliated with the Administrator, all expenses
incurred in connection with such unaffiliated Trustees' services as Trustees,
and all other expenses of meeting as of the Trustees or committees thereof;
2.2.9 Shareholder Meetings. All expenses incidental to
holding meetings of shareholders, including the printing of notices and proxy
materials, and proxy solicitation therefor;
2.2.10 Federal Registration Fees. All fees and expenses of
registering and maintaining the registration of the Trust and each Portfolio
under the 1940 Act and the registration of each Portfolio's shares under the
Securities Act of 1933 (the "1933 Act"), including all fees and expenses
incurred in connection with the preparation, setting in type, printing, and
filing of any Registration Statement, Prospectus and SAI under the 1933 Act or
the 1940 Act, and any amendments or supplements that may be made from time to
time;
2.2.11 State Registration Fees. All fees and expenses of
qualifying and maintaining the qualification of the Trust and each Portfolio and
of each Portfolio's shares for sale under securities laws of various states or
jurisdictions, and of registration and qualification of each Portfolio under all
other laws applicable to a Portfolio or its business activities (including
registering the Portfolio as a broker-dealer, or any officer of the Portfolio or
any person as agent or salesman of the Portfolio in any state);
2.2.12 Share Certificates. All expenses of preparing and
transmitting a Portfolio's share certificates, if any;
2.2.13 Confirmations. All expenses incurred in connection
with the issue and transfer of a Portfolio's shares, including the expenses of
confirming all share transactions;
2.2.14 Bonding and Insurance. All expenses of bond,
liability, and other insurance coverage required by law or regulation or deemed
advisable by the Trustees, including, without limitation, such bond, liability
and other insurance expense that may from time to time be allocated to the
Portfolio in a manner approved by the Trustees;
2.2.15 Brokerage Commissions. All brokers' commissions and
other charges incident to the purchase, sale or lending of a Portfolio's
securities;
2.2.16 Taxes. All taxes or governmental fees payable by or
with respect to a Portfolio to federal, state or other governmental agencies,
domestic or foreign, including stamp or other transfer taxes;
2.2.17 Trade Association Fees. Its proportionate share of all
fees, dues and other expenses incurred in connection with the Trust's membership
in any trade association or other investment organization;
2.2.18 Nonrecurring and Extraordinary Expenses. Such
nonrecurring and extraordinary expenses as may arise, including the costs of
actions, suits, or proceedings to which the Portfolio is a party and the
expenses a Portfolio may incur as a result of its legal obligation to provide
indemnification to the Trust's officers, Trustees and agents;
2.2.19 0rganizational Expenses. All organizational expenses of
each Portfolio paid or assessed by the Administrator, which such Portfolio shall
reimburse to the Administrator at such time or times and subject to such
condition or conditions as shall be specified in the Prospectus and SAI pursuant
to which such Portfolio makes the initial public offering of its shares; and
2.2.20 Investment Advisory Services. Any fees and expenses
for investment advisory services that may be incurred or contracted for by a
Portfolio.
3. Administration Fee.
3.1 Fee. As compensation for all services rendered, facilities
provided and expenses paid or assumed by the Administrator to or for each
Portfolio under this Agreement, such Portfolio shall pay the Administrator an
annual fee as set out in Schedule B to this Agreement.
3.2 Computation and Payment of Fee. The administration fee
shall accrue on each calendar day, and shall be payable monthly on the first
business day of the next succeeding calendar month. The daily fee accruals for
each Portfolio shall be computed by multiplying the fraction of one divided by
the number of days in the calendar year by the applicable annual administration
fee rate (as set forth in Schedule B hereto), and multiplying this product by
the NAV of such Portfolio, determined in the manner set forth in such
Portfolio's then-current Prospectus, as of the close of business on the last
preceding business day on which such Portfolio's NAV was determined.
3.3 State Expense Limitation. If in any fiscal year a
Portfolio's operating expenses plus such Portfolio's pro rata portion of the
operating expenses of any portfolio of Advisers Managers Trust in which such
Portfolio invests all or substantially all of its assets ("Aggregate Operating
Expenses"), which includes any fees or expense reimbursements payable to the
Administrator pursuant to this Agreement and any compensation payable to the
Administrator pursuant to (i) the Management Agreement between such Series and
the Administrator, or (ii) any other agreement or arrangement with respect to
such Portfolio, (but excluding interest, taxes, brokerage commissions,
litigation and indemnification expenses, and other extraordinary expenses not
incurred in the ordinary course of such Portfolio's business) exceed the lowest
applicable percentage expense limitation imposed under the securities law and
regulations of any state in which such Portfolio's shares are qualified for sale
(the "State Expense Limitation"), then the administration fee payable to the
Administrator under this Agreement by such Portfolio shall be reduced by the
amount of such excess; provided, that the Administrator shall have no obligation
hereunder to reimburse the Portfolio for any such expenses which exceed such
administration fee.
Any reduction in the administration fee shall be made monthly,
by annualizing the Aggregate Operating Expenses of such Portfolio for each month
as of the last day of such month. An adjustment shall be made on or before the
last day of the first month of the next succeeding fiscal year if Aggregate
Operating Expenses for such Portfolio's fiscal year do not exceed the State
Expense Limitation or if for such fiscal year there is no applicable State
Expense Limitation.
4. Ownership of Records. All records required to be maintained and
preserved by each Portfolio pursuant to the provisions or rules or regulations
of the Securities and Exchange Commission ("SEC") under section 31(a) of the
1940 Act and maintained and preserved by the Administrator on behalf of such
Portfolio are the property of such Portfolio and shall be surrendered by the
Administrator promptly on request by the Portfolio; provided, that the
Administrator may at its own expense make and retain copies of any such records.
5. Reports to Administrator. Each Portfolio shall furnish or
otherwise make available to the Administrator such copies of that Portfolio's
Prospectus, SAI, financial statements, proxy statements, reports, and other
information relating to its business and affairs as the Administrator may, at
any time or from time to time, reasonably require in order to discharge its
obligations under this Agreement.
6. Reports to each Portfolio. The Administrator shall prepare and
furnish to each Portfolio such reports, statistical data and other information
in such form and at such intervals as such Portfolio may reasonably request.
7. Ownership of Software and Related Materials. All computer programs,
written procedures and similar items developed or acquired and used by the
Administrator in performing its obligations under this Agreement shall be the
property of the Administrator, and no Portfolio will acquire any ownership
interest therein or property rights with respect thereto.
8. Confidentiality. The Administrator agrees, on its own behalf and on
behalf of its employees, agents and contractors, to keep confidential any and
all records maintained and other information obtained hereunder which relate to
any Portfolio or to any of a Portfolio's former, current or prospective
shareholders, except that the Administrator may deliver records or divulge
information (a) when requested to do so by duly constituted authorities after
prior notification to and approval in writing by such Portfolio (which approval
will not be unreasonably withheld and may not be withheld by such Portfolio
where the Administrator advises such Portfolio that it may be exposed to civil
or criminal contempt proceedings or other penalties for failure to comply with
such request) or (b) whenever requested in writing to do so by such Portfolio.
9. The Administrator's Actions in Reliance on Portfolios' Instructions,
Legal Opinions, Etc.; Portfolios' Compliance with Laws.
9.1 The Administrator may at any time apply to an officer of
the Trust for instructions, and may consult with legal counsel for a Portfolio
or with the Administrator's own legal counsel, in respect of any matter arising
in connection with this Agreement; and the Administrator shall not be liable for
any action taken or omitted to be taken in good faith and with due care in
accordance with such instructions or with the advice or opinion of such legal
counsel. The Administrator shall be protected in acting upon any such
instructions, advice or opinion and upon any other paper or document delivered
by a Portfolio or such legal counsel which the Administrator believes to be
genuine and to have been signed by the proper person or persons, and the
Administrator shall not be held to have notice of any change of status or
authority of any officer or representative of the Trust, until receipt of
written notice thereof from the Portfolio.
9.2 Except as otherwise provided in this Agreement or in any
separate agreement between the parties and except for the accuracy of
information furnished to each Portfolio by the Administrator, each Portfolio
assumes full responsibility for the preparation, contents, filing and
distribution of its Prospectus and SAI, and full responsibility for other
documents or actions required for compliance with all applicable requirements of
the 1940 Act, the Securities Exchange Act of 1934, the 1933 Act, and any other
applicable laws, rules and regulations of governmental authorities having
jurisdiction over such Portfolio.
10. Services to Other Clients. Nothing herein contained shall limit the
freedom of the Administrator or any affiliated person of the Administrator to
render administrative or shareholder services to other investment companies, to
act as administrator to other persons, firms, or corporations, or to engage in
other business activities.
11. Limitation of Liability Regarding the Trust. The Administrator
shall look only to the assets of each Portfolio for performance of this
Agreement by the Trust on behalf of such Portfolio, and neither the Trustees of
the Trust nor any of the Trust's officers, employees or agents, whether past,
present or future shall be personally liable therefor.
12. Indemnification by Portfolio. Each Portfolio shall indemnify the
Administrator and hold it harmless from and against any and all losses, damages
and expenses, including reasonable attorneys' fees and expenses, incurred by the
Administrator that result from (i) any claim, action, suit or proceeding in
connection with the Administrator's entry into or performance of this Agreement
with respect to such Portfolio; or (ii) any action taken or omission to act
committed by the Administrator in the performance of its obligations hereunder
with respect to such Portfolio; or (iii) any action of the Administrator upon
instructions believed in good faith by it to have been executed by a duly
authorized officer or representative of the Trust with respect to such
Portfolio; provided, that the Administrator shall not be entitled to such
indemnification in respect of actions or omissions constituting negligence or
misconduct on the part of the Administrator or its employees, agents or
contractors. Before confessing any claim against it which may be subject to
indemnification by a Portfolio hereunder, the Administrator shall give such
Portfolio reasonable opportunity to defend against such claim in its own name or
in the name of the Administrator.
13. Indemnification by the Administrator. The Administrator shall
indemnify each Portfolio and hold it harmless from and against any and all
losses, damages and expenses, including reasonable attorneys' fees and expenses,
incurred by such Portfolio which result from (i) the Administrators failure to
comply with the terms of this Agreement with respect to such Portfolio; or (ii)
the Administrator's lack of good faith in performing its obligations hereunder
with respect to such Portfolio; or (iii) the Administrator's negligence or
misconduct or its employees, agents or contractors in connection herewith with
respect to such Portfolio. A Portfolio shall not be entitled to such
indemnification in respect of actions or omissions constituting negligence or
misconduct on the part of that Portfolio or its employees, agents or contractors
other than the Administrator unless such negligence or misconduct results from
or is accompanied by negligence or misconduct on the part of the Administrator,
any affiliated person of the Administrator, or any affiliated person of an
affiliated person of the Administrator. Before confessing any claim against it
which may be subject to indemnification hereunder, a Portfolio shall give the
Administrator reasonable opportunity to defend against such claim in its own
name or in the name of the Trust on behalf of such Portfolio.
14. Effect of Agreement. Nothing herein contained shall be deemed to
require the Trust or any Portfolio to take any action contrary to the Trust
Instrument or By-laws of the Trust or any applicable law, regulation or order to
which it is subject or by which it is bound, or to relieve or deprive the
Trustees of their responsibility for and control of the conduct of the business
and affairs of the Portfolio or Trust.
15. Term of Agreement. The term of this Agreement shall begin on the
date first above written with respect to each Portfolio listed in Schedule A on
the date hereof and, unless sooner terminated as hereinafter provided, this
Agreement shall remain in effect through April 30, 1997. With respect to each
Portfolio added by execution of an Addendum to Schedule A, the term of this
Agreement shall begin on the date of such execution and, unless sooner
terminated as hereinafter provided, this Agreement shall remain in effect to the
date two years after such execution. Thereafter, in each case this Agreement
shall continue in effect with respect to each Portfolio from year to year,
subject to the termination provisions and all other terms and conditions hereof;
provided, such continuance with respect to a Portfolio is approved at least
annually by vote or written consent of the Trustees, including a majority of the
Trustees who are not interested persons of either party hereto ("Disinterested
Trustees"); and provided further, that the Administrator shall not have notified
a Portfolio in writing at least sixty days prior to the first expiration date
hereof or at least sixty days prior to any expiration date in any year
thereafter that it does not desire such continuation. The Administrator shall
furnish any Portfolio, promptly upon its request, such information as may
reasonably be necessary to evaluate the terms of this Agreement or any
extension, renewal or amendment thereof.
16. Amendment or Assignment of Agreement. Any amendment to this
Agreement shall be in writing signed by the parties hereto; provided, that no
such amendment shall be effective unless authorized on behalf of any Portfolio
(i) by resolution of the Trustees, including the vote or written consent of a
majority of the Disinterested Trustees, or (ii) by vote of a majority of the
outstanding voting securities of such Portfolio. This Agreement shall terminate
automatically and immediately in the event of its assignment; provided, that
with the consent of a Portfolio, the Administrator may subcontract to another
person any of its responsibilities with respect to such Portfolio.
17. Termination of Agreement. This Agreement may be terminated at any
time by either party hereto, without the payment of any penalty, upon at least
sixty days' prior written notice to the other party; provided, that in the case
of termination by any Portfolio, such action shall have been authorized (i) by
resolution of the Trustees, including the vote or written consent of the
Disinterested Trustees, or (ii) by vote of a majority of the outstanding voting
securities of such Portfolio.
18. Use of Name. Each Portfolio hereby agrees that if the Administrator
shall at any time for any reason cease to serve as administrator to a Portfolio,
such Portfolio shall, if and when requested by the Administrator, thereafter
refrain from using the name "Xxxxxxxxx & Xxxxxx" or the initials "N&B" in
connection with its business or activities, and the foregoing agreement of each
Portfolio shall survive any termination of this Agreement and any extension or
renewal thereof.
19. Interpretation and Definition of Terms. Any question of
interpretation of any term or provision of this Agreement having a counterpart
in or otherwise derived from a term or provision of the 1940 Act shall be
resolved by reference to such term or provision the 1940 Act and to
interpretation thereof, if any, by the United States courts or, in the absence
of any controlling decision of any such court, by rules, regulations or orders
of the SEC validly issued pursuant to the 1940 Act. Specifically, the terms
"vote of a majority of the outstanding voting securities," "interested persons,"
"assignment" and "affiliated person," as used in this Agreement shall have the
meanings assigned to them by section 2(a) of the 1940 Act. In addition, when the
effect of a requirement of the 1940 Act reflected in any provision of this
Agreement is modified, interpreted or relaxed by a rule, regulation or order of
the SEC, whether of special or of general application, such provision shall be
deemed to incorporate the effect of such rule, regulation or order.
20. Choice of Law. This Agreement is made and to be principally
performed in the State of New York, and except insofar as the 1940 Act or other
federal laws and regulations may be controlling, this Agreement shall be
governed by, and construed and enforced in accordance with, the internal laws of
the State of New York.
21. Captions. The captions in this Agreement are included for
convenience of reference only and in no way define or delineate any of the
provisions hereof or otherwise affect their construction or effect.
22. Execution in Counterparts. This Agreement may be executed
simultaneously in counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be signed by their respective officers thereunto duly authorized and their
respective seals to be hereunto affixed, as of the day and year first above
written.
XXXXXXXXX & XXXXXX
ADVISERS MANAGEMENT TRUST
Attest: By /s/ Xxxxxxx Xxxxxxx
/s/ Xxxxxxx X. Xxxxxxx Treasurer
Secretary Title
XXXXXXXXX & XXXXXX
MANAGEMENT IINCORPORATED
Attest: By: /s/ Xxxxxxx X. Xxxxxx
/s/ Xxxxx Xxxxxxx Senior Vice President
Secretary Title
XXXXXXXXX & XXXXXX ADVISERS MANAGEMENT TRUST
ADMINISTRATION AGREEMENT
SCHEDULE A
SERIES Date Added to Agreement
Balanced Portfolio May 1, 1995
Growth Portfolio May 1, 1995
Liquid Asset Portfolio May 1, 1995
Limited Maturity Bond Portfolio May 1, 1995
Partners Portfolio May 1, 1995
Government Income Portfolio May 1, 1995
International Portfolio May 1, 1997
XXXXXXXXX & XXXXXX ADVISERS MANAGEMENT TRUST
ADMINISTRATION AGREEMENT
SCHEDULE B
Compensation pursuant to Paragraph 3 of the Xxxxxxxxx & Xxxxxx Advisers
Management Trust Administration Agreement shall be the following percentage per
annum of the average daily net assets of each Portfolio.
Balanced Portfolio 0.30%
Growth Portfolio 0.30%
Liquid Asset Portfolio 0.40%
Limited Maturity Bond Portfolio 0.40%
Partners Portfolio 0.30%
Government Income Portfolio 0.40%
International Portfolio 0.30%
DATED: May 1, 1997
