EXPENSE CAP/REIMBURSEMENT AGREEMENT
This Agreement is entered into as of the 24th day
of February, 1999, between Target Holdings Corporation
d/b/a/ Target Investors (the "Adviser") and Grand Prix
Funds, Inc. (the "Company") on behalf of the Grand Prix
Fund (the "Fund").
WHEREAS, the Adviser has previously voluntarily
agreed to reduce its advisory fee and/or reimburse the
Fund for certain operating expenses to the extent
necessary to cap the Fund's total operating expenses at
a certain level.
WHEREAS, the Adviser now desires to contractually
agree to waive a portion of its advisory fee or
reimburse certain of the Fund's operating expenses to
ensure that the Fund's total operating expenses do not
exceed the level described below.
NOW THEREFORE, the parties agree as follows:
The Adviser agrees that, for the term of this
Agreement, it will reduce its compensation as provided
for in the Investment Advisory Agreement between the
Fund and the Adviser dated December 31, 1997, and/or
assume expenses for the Fund to the extent necessary to
ensure that the Fund's total operating expenses do not
exceed 1.72%, on an annual basis of the Fund's average
daily net assets.
The Adviser shall be entitled to recoup such
amounts for a period of up to three (3) years from the
date the Adviser reduced its compensation and/or
assumed expenses for the Fund.
This Agreement shall terminate on February 29,
2000 unless extended by the mutual agreement of the
parties, as provided for in an amendment to this
Agreement.
TARGET HOLDINGS
CORPORATION d/b/a TARGET
INVESTORS
By:/s/ Xxxxxx Xxxxxxx
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Xxxxxx Xxxxxxx, President
GRAND PRIX FUNDS, INC.
By:/s/ Xxxxxx Xxxxxxx
------------------------
Xxxxxx Xxxxxxx, President
