Exhibit 10.6
SERVICING AGREEMENT
AGREEMENT made this 1st day of October, 2002 by and between XXXXXXXX
MUTUAL FUNDS, INC., a Maryland corporation (hereinafter referred to as the
"Corporation"), on behalf of each of its investment series set forth on Schedule
A hereto as it may be amended from time to time (hereinafter referred to each as
a "Fund" and together, as the "Funds"), and XXXXXXXX ADVISORS, INC., a
California corporation (hereinafter referred to as "HAI").
W I T N E S S E T H :
WHEREAS, the Corporation is engaged in business as a diversified open-
end management investment company and HAI serves as investment adviser to the
Funds pursuant to a Management Agreement with the Corporation; and
WHEREAS, the Corporation desires to retain HAI to perform services to
the Funds which are in addition to the services that HAI performs for the Funds
pursuant to the Management Agreement; and
WHEREAS, HAI is willing to provide such services to the Funds on the
terms and conditions hereafter set forth;
NOW, THEREFORE, in consideration of the premises and covenants
hereinafter contained, the Corporation on behalf of the Funds, and HAI agree as
follows:
ARTICLE I
DUTIES OF HAI
The Corporation hereby employs HAI to provide "Administrative Support
Services" to the Funds. "Administrative Support Services" shall include: (i)
maintaining an "800" number which current shareholders may call to ask questions
about the Funds or their accounts with the Funds; (ii) assisting shareholders in
processing exchange and redemption requests; (iii) assisting shareholders in
changing dividend options, account designations and addresses; (iv) responding
generally to questions of shareholders; and (v) providing such other similar
services as the Corporation shall request. "Administrative Support Services"
shall not include services HAI is required to perform under the Management
Agreement, including investment advisory services.
ARTICLE II
EXPENSES
HAI assumes the responsibility, and shall pay, for maintaining the
staff and personnel necessary to perform its obligations under this Agreement.
ARTICLE III
COMPENSATION OF HAI
For the services rendered by HAI under this Agreement, each Fund shall
pay to HAI at the end of each calendar month a fee equal to 1/12 of 0.10% of the
average daily net assets of such Fund for such month as determined and computed
in accordance with the description of net asset value contained in the relevant
Prospectus and Statement of Additional Information. If this Agreement
terminates before the last day of a month, compensation for that part of the
month that this Agreement is in effect shall be prorated in a manner consistent
with the calculation of the fee as set forth above.
ARTICLE IV
DURATION AND TERMINATION OF THIS AGREEMENT
This Agreement shall become effective as of the date first above
written and shall remain in force with respect to each Fund so long as its
continuance is specifically approved with respect to each Fund at least annually
by a majority of those Directors who are not parties to this Agreement or
"interested persons" (as such term is defined in the Investment Company Act of
1940, as amended) of any such party. This Agreement may be terminated by either
party on sixty days' written notice to the other party.
ARTICLE V
AMENDMENTS OF THIS AGREEMENT
All amendments of this Agreement must be approved by a majority of
those Directors who are not parties to this Agreement or "interested persons"
(as such term is defined in the Investment Company Act of 1940, as amended) of
any such party.
IN WITNESS WHEREOF, the parties hereto have executed and delivered
this Agreement as of the date first above written.
XXXXXXXX MUTUAL FUNDS, INC.
By; /s/ Xxxx X. Xxxxxxxx
--------------------------------
Xxxx X. Xxxxxxxx, President
XXXXXXXX ADVISORS, INC.
By; /s/ Xxxx X. Xxxxxxxx
--------------------------------
Xxxx X. Xxxxxxxx, President
2
SCHEDULE A
Xxxxxxxx Cornerstone Value Fund
Xxxxxxxx Cornerstone Growth Fund
Xxxxxxxx Cornerstone Growth Fund, Series II
