1
EXHIBIT 99.B9(c)
ADMINISTRATIVE SERVICES AGREEMENT
AGREEMENT dated this 1st day of August, 1990, by and between
XXXXXX U.S. GOVERNMENT SECURITIES FUND, a Massachusetts business
trust (the "Fund"), and XXXXXX FINANCIAL SERVICES, INC., a
Delaware corporation ("KFS").
In consideration of the mutual covenants hereinafter contained,
it is hereby agreed by and between the parties hereto as follows:
1. The Fund hereby appoints KFS to provide information and
administrative services for the benefit of the Fund and its
shareholders. In this regard, KFS shall appoint various
broker-dealer firms and other financial services firms ("Firms") to
provide related services and facilities for their clients who are
shareholders of the Fund ("clients"). The Firms shall provide
such office space and equipment, telephone facilities and
personnel as is necessary or beneficial for providing information
and services to shareholders of the Fund. Such services and
assistance may include, but are not limited to, establishing and
maintaining shareholder accounts and records, processing purchase
and redemption transactions, answering routine client inquiries
regarding the Fund and its special features, assistance to
clients in changing dividend and investment options, account
designations and addresses, and such other services as the Fund
or KFS may reasonably request. KFS may also provide some of the
above services for the Fund directly.
KFS accepts such appointment and agrees during such period to
render such services and to assume the obligations herein set
forth for the compensation herein provided. KFS shall for all
purposes herein provided be deemed to be an independent
contractor and, unless otherwise expressly provided or
authorized, shall have no authority to act for or represent the
Fund in any way or otherwise be deemed an agent of the Fund.
KFS, by separate agreement with the Fund, may also serve the Fund
in other capacities. In carrying out its duties and
responsibilities hereunder, KFS will appoint various Firms to
provide administrative and other services described herein
directly to or for the benefit of shareholders of the Fund who
may be clients of such Firms. Such Firms shall at all times be
deemed to be independent contractors retained by KFS and not the
Fund. KFS and not the Fund will be responsible for the payment
of compensation to such Firms for such services.
2. For the services and facilities described in Section 1, the
Fund will pay to KFS at the end of each calendar month an
administrative service fee computed at an annual rate of up to
2
0.25 of 1% of the average daily net assets of the Fund. The
current fee schedule is set forth as Appendix I hereto. For the
month and year in which this Agreement becomes effective or
terminates, there shall be an appropriate proration on the basis
of the number of days that the Agreement is in effect during such
month and year, respectively. The services of KFS to the Fund
under this Agreement are not to be deemed exclusive, and KFS
shall be free to render similar services or other services to
others.
The net asset value for each share of the Fund shall be
calculated in accordance with the provisions of the Fund's
current prospectus. On each day when net asset value is not
calculated, the net asset value of a share of the Fund shall be
deemed to be the net asset value of such a share as of the close
of business on the last day on which such calculation was made
for the purpose of the foregoing computations.
3. The Fund shall assume and pay all charges and expenses of
its operations not specifically assumed or otherwise to be
provided by KFS under this Agreement.
4. This Agreement may be terminated at any time without the
payment of any penalty by the Fund or by KFS on sixty (60) days
written notice to the other party. Termination of this Agreement
shall not affect the right of KFS to receive payments on any
unpaid balance of the compensation described in Section 2 hereof
earned prior to such termination. This Agreement may not be
amended to increase the amount to be paid to KFS for services
hereunder above .25 of 1% of the average daily net assets of the
Fund without the vote of a majority of the outstanding voting
securities of the Fund. All material amendments to this
Agreement must in any event be approved by vote of the Board of
Trustees of the Fund.
5. If any provision of this Agreement shall be held or made
invalid by a court decision, statute, rule or otherwise, the
remainder shall not be thereby affected.
6. Any notice under this Agreement shall be in writing,
addressed and delivered or mailed, postage prepaid, to the other
party at such address as such other party may designate for the
receipt of such notice.
7. All parties hereto are expressly put on notice of the Fund's
Agreement and Declaration of Trust and all amendments thereto,
all of which are on file with the Secretary of The Commonwealth
of Massachusetts, and the limitation of shareholder and trustee
liability contained therein. This Agreement has been executed by
and on behalf of the Fund by its representatives as such
representatives and not individually, and the obligations of the
Fund hereunder are not binding upon any of the trustees, officers
2
3
or shareholders of the Fund individually but are binding upon
only the assets and property of the Fund.
8. This Agreement shall be construed in accordance with
applicable federal law and (except as to Section 7 hereof which
shall be construed in accordance with the laws of The
Commonwealth of Massachusetts) the laws of the State of Illinois.
IN WITNESS WHEREOF, the Fund and KFS have caused this Agreement
to be executed as of the day and year first above written.
XXXXXX U.S. GOVERNMENT XXXXXX FINANCIAL SERVICES, INC.
SECURITIES FUND
By: /s/ Xxxxxxx X. Xxxxxxxx By: /s/ Xxxx X. Xxxxxx
------------------------ -----------------------------
Title: President Title: Executive Vice President
3
4
APPENDIX I
XXXXXX U.S. GOVERNMENT SECURITIES FUND
FEE SCHEDULE FOR ADMINISTRATIVE
SERVICES AGREEMENT
Pursuant to Section 2 of the Administrative Services Agreement to
which this Appendix is attached, the Fund and KFS agree that the
initial administrative service fee will be computed at an annual
rate of .15 of 1% (the "Fee Rate"). For purposes of computing
the fee due KFS, the Fee Rate shall be applied against the amount
of assets of the Fund for which a broker-dealer or other
financial services firm is listed on the records of the Fund as
"dealer of record," which shall not include KFS.
Dated: August 1, 1990
XXXXXX U.S. GOVERNMENT XXXXXX FINANCIAL SERVICES, INC.
SECURITIES FUND
By: /s/ Xxxxxxx X. Xxxxxxxx By: /s/ Xxxx X. Xxxxxx
------------------------- -----------------------------
Title: President Title: Executive Vice President
