ADMINISTRATIVE SERVICES AGREEMENT
AGREEMENT made as of the 28th day of February, 1997, in Denver, Colorado,
by and between INVESCO INDUSTRIAL INCOME FUND, INC., a Maryland corporation (the
"Fund"), and INVESCO FUNDS GROUP, INC., a Delaware corporation (hereinafter
referred to as "INVESCO").
WHEREAS, the Fund is engaged in business as an open-end management
investment company, is registered as such under the Investment Company Act of
1940, as amended (the "Act"), and is authorized to issue one class of shares;
and
WHEREAS, INVESCO is registered as an investment adviser under the
Investment Advisers Act of 1940, and engages in the business of acting as
investment adviser and providing certain other administrative, sub-accounting
and recordkeeping services to certain investment companies, including the Fund;
and
WHEREAS, the Fund desires to retain INVESCO to render certain
administrative, sub-accounting and recordkeeping services (the "Services") in
the manner and on the terms and conditions hereinafter set forth; and
WHEREAS, INVESCO desires to be retained to perform such services on said
terms and conditions;
NOW, THEREFORE, in consideration of the premises and the mutual covenants
hereinafter contained, the Fund and INVESCO agree as follows:
1. The Fund hereby retains INVESCO to provide, or, upon receipt of written
approval of the Fund arrange for other companies, including affiliates of
INVESCO, to provide to the Fund: A) such sub-accounting and recordkeeping
services and functions as are reasonably necessary for the operation of the
Fund. Such services shall include, but shall not be limited to, preparation and
maintenance of the following required books, records and other documents: (1)
journals containing daily itemized records of all purchases and sales, and
receipts and deliveries of securities and all receipts and disbursements of cash
and all other debits and credits, in the form required by Rule 31a-1(b)(1) under
the Act; (2) general and auxiliary ledgers reflecting all asset, liability,
reserve, capital, income and expense accounts, in the form required by Rules
31a-1(b)(2)(i) - (iii) under the Act; (3) a securities record or ledger
reflecting separately for each portfolio security as of trade date all "long"
and "short" positions carried by the Fund for the account of the Fund, if any,
and showing the location of all securities long and the off-setting position to
all securities short, in the form required by Rule 31a-1(b)(3) under the Act;
(4) a record of all portfolio purchases or sales, in the form required by Rule
31a-1(b)(6) under the Act; (5) a record of all puts, calls, spreads, straddles
and all other options, if any, in which the Fund has any direct or indirect
interest or which the Fund has granted or guaranteed, in the form required by
Rule 31a-1(b)(7) under the Act; (6) a record of the proof of money balances in
all ledger accounts maintained pursuant to this Agreement, in the form required
by Rule 31a- 1(b)(8) under the Act; and (7) price make-up sheets and such
records as are necessary to reflect the determination of the Fund's net asset
value. The foregoing books and records shall be maintained and preserved by
INVESCO in accordance with and for the time periods specified by applicable
rules and regulations, including Rule 31a-2 under the Act. All such books and
records shall be the property of the Fund and, upon request therefor,
INVESCO shall surrender to the Fund such of the books and records so requested;
and B) such sub-accounting, recordkeeping and administrative services and
functions, which shall be furnished by a wholly-owned subsidiary of INVESCO, as
are reasonably necessary for the operation of Fund shareholder accounts
maintained by certain retirement plans and employee benefit plans for the
benefit of participants in such plans. Such services and functions shall
include, but shall not be limited to: (1) establishing new retirement plan
participant accounts; (2) receipt and posting of weekly, bi-weekly and monthly
retirement plan contributions; (3) allocation of contributions to each
participant's individual Fund account; (4) maintenance of separate account
balances for each source of retirement plan money (i.e., Company, Employee,
Voluntary, Rollover) invested in the Fund; (5) purchase, sale, exchange or
transfer of monies in the retirement plan as directed by the relevant party; (6)
distribution of monies for participant loans, hardships, terminations, death or
disability payments; (7) distribution of periodic payments for retired
participants; (8) posting of distributions of interest, dividends and long-term
capital gains to participants by the Fund; (9) production of monthly, quarterly
and/or annual statements of all Fund activity for the relevant parties; (10)
processing of participant maintenance information for investment election
changes, address changes, beneficiary changes and Qualified Domestic Relations
Orders; (11) responding to telephone and written inquiries concerning Fund
investments, retirement plan provisions and compliance issues; (12) performing
discrimination testing and counseling employers on cure options on failed tests;
(13) preparation of 1099R and W2P participant IRS tax forms; (14) preparation
of, or assisting in the preparation of, 5500 Series tax forms, Summary Plan
Descriptions and Determination Letters; and (15) reviewing legislative and IRS
changes to keep the retirement plan in compliance with applicable law.
2. INVESCO shall, at its own expense, maintain such staff and employ or
retain such personnel and consult with such other persons as it shall from time
to time determine to be necessary or useful to the performance of its
obligations under this Agreement. Without limiting the generality of the
foregoing, such staff and personnel shall be deemed to include officers of
INVESCO and persons employed or otherwise retained by INVESCO to provide or
assist in providing the Services to the Fund.
3. INVESCO shall, at its own expense, provide such office space,
facilities and equipment (including, but not limited to, computer equipment,
communication lines and supplies) and such clerical help and other services as
shall be necessary to provide the Services to the Fund. In addition, INVESCO may
arrange on behalf of the Fund to obtain pricing information regarding the Fund's
investment securities from such company or companies as are approved by a
majority of the Fund's board of directors; and, if necessary, the Fund shall be
financially responsible to such company or companies for the reasonable cost of
providing such pricing information.
4. The Fund will, from time to time, furnish or otherwise make available
to INVESCO such information relating to the business and affairs of the Fund as
INVESCO may reasonably require in order to discharge its duties and obligations
hereunder.
5. For the services rendered, facilities furnished, and expenses assumed
by INVESCO under this Agreement, the Fund shall pay to INVESCO a $10,000 per
year base fee, plus an additional fee, computed on a daily basis and paid on a
monthly basis. For purposes of each daily calculation of this additional fee,
the most recently determined net asset value of the Fund, as determined by a
valuation made in accordance with the Fund's procedure for calculating the
Fund's net asset value as described in the Fund's Prospectus and/or Statement of
Additional Information, shall be used. The additional fee to INVESCO under this
Agreement shall be computed at the annual rate of 0.015% of the Fund's daily net
assets as so determined. During any period when the determination of a the
Fund's net asset value is suspended by the directors of the Fund, the net asset
value of a share of the Fund as of the last business day prior to such
suspension shall, for the purpose of this Paragraph 5, be deemed to be the net
asset value at the close of each succeeding business day until it is again
determined.
6. INVESCO will permit representatives of the Fund including the Fund's
independent auditors to have reasonable access to the personnel and records of
INVESCO in order to enable such representatives to monitor the quality of
services being provided and the level of fees due INVESCO pursuant to this
Agreement. In addition, INVESCO shall promptly deliver to the board of directors
of the Fund such information as may reasonably be requested from time to time to
permit the board of directors to make an informed determination regarding
continuation of this Agreement and the payments contemplated to be made
hereunder.
7. This Agreement shall remain in effect until no later than February 28,
1998 and from year to year thereafter provided such continuance is approved at
least annually by the vote of a majority of the directors of the Fund who are
not parties to this Agreement or "interested persons" (as defined in the Act) of
any such party, which vote must be cast in person at a meeting called for the
purpose of voting on such approval; and further provided, however, that (a) the
Fund may, at any time and without the payment of any penalty, terminate this
Agreement upon thirty days written notice to INVESCO; (b) the Agreement shall
immediately terminate in the event of its assignment (within the meaning of the
Act and the Rules thereunder) unless the Board of Directors of the Fund approves
such assignment; and (c) INVESCO may terminate this Agreement without payment of
penalty on sixty days written notice to the Fund. Any notice under this
Agreement shall be given in writing, addressed and delivered, or mailed postage
pre-paid, to the other party at the principal office of such party.
8. This Agreement shall be construed in accordance with the laws of the
State of Colorado and the applicable provisions of the Act. To the extent the
applicable law of the State of Colorado or any of the provisions herein conflict
with the applicable provisions of the Act, the latter shall control.
IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement on the day and year first above written.
INVESCO INDUSTRIAL INCOME FUND, INC.
By: /s/ Xxx X. Xxxxxx
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ATTEST: Xxx X. Xxxxxx
President
/s/ Xxxx X. Xxxxx
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Xxxx X. Xxxxx
Secretary
INVESCO FUNDS GROUP, INC.
By: /s/ Xxxxxx X. Xxxxxx
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ATTEST: Xxxxxx X. Xxxxxx
Senior Vice President
/s/ Xxxx X. Xxxxx
----------------------
Xxxx X. Xxxxx
Secretary
