EX-99.SUBCUSTAGR 73 subcustagr.txt Exhibit (g)(iv) under Form N-1A Exhibit 10 under Item 601/Reg. S-K FOREIGN CUSTODY MANAGER AGREEMENT AGREEMENT made as of December 21, 2005 among The Huntington Funds and Huntington VA Funds, each a trust established under the laws of the Commonwealth of Massachusetts (the "Trusts"), and The Bank of New York ("BNY"). W I T N E S S E T H: WHEREAS, the Trusts desire to appoint BNY as a Foreign Custody Manager of those portfolios listed on Exhibit A hereto (as it may be amended from time to time) (the "Portfolios") on the terms and conditions contained herein; WHEREAS, BNY desires to serve as a Foreign Custody Manager of the Portfolios and perform the duties set forth herein on the terms and conditions contained herein; NOW THEREFORE, in consideration of the mutual promises hereinafter contained in this Agreement, the Trusts and BNY hereby agree as follows: ARTICLE I. DEFINITIONS Whenever used in this Agreement, the following words and phrases, unless the context otherwise requires, shall have the following meanings: 1. "Board" shall mean the board of directors or board of trustees, as the case may be, of the Trusts. 2. "Eligible Foreign Custodian" shall have the meaning provided in the Rule. 3. "Monitoring System" shall mean a system established by BNY to fulfill the Responsibilities specified in clauses (d) and (e) of Section 1 of Article III of this Agreement. 4. "Responsibilities" shall mean the responsibilities delegated to BNY under the Rule as a Foreign Custody Manager with respect to each Specified Country and each Eligible Foreign Custodian selected by BNY, as such responsibilities are more fully described in Article III of this Agreement. 5. "Rule" shall mean Rule 17f-5 under the Investment Company Act of 1940, as it may be amended from time to time. 6. "Specified Country" shall mean each country listed on Schedule I attached hereto and each country, other than the United States, constituting the primary market for a security with respect to which the Trusts have given settlement instructions to The Bank of New York as sub-custodian (the "Custodian") under The Huntington National Bank's Foreign Custody Agreement with BNY on behalf of the Trusts. ARTICLE II. BNY AS A FOREIGN CUSTODY MANAGER 1. Each Trust, on behalf of its Board, hereby delegates to BNY, subject to Section (b) of the Rule, the Responsibilities with respect to the foreign assets of the Portfolio. 2. BNY accepts the Board's delegation of the Responsibilities and agrees in performing the Responsibilities as a Foreign Custody Manager to exercise reasonable care, prudence and diligence such as a person having responsibility for the safekeeping of the Trusts' assets would exercise. 3. BNY shall provide to the Board at such times as the Board deems reasonable and appropriate based on the circumstances of the Portfolios' foreign custody arrangements, but in any event no less than quarterly, written reports notifying the Board of the placement of assets of the Portfolios with a particular Eligible Foreign Custodian within a Specified Country and of any material change in the arrangements (including the contract governing such arrangements) with respect to assets of the Portfolios with any such Eligible Foreign Custodian. ARTICLE III. RESPONSIBILITIES 1. Subject to the provisions of this Agreement, BNY shall with respect to each Specified Country select an Eligible Foreign Custodian. In connection therewith, BNY shall: (a) determine that assets of the Portfolios held by such Eligible Foreign Custodian will be subject to reasonable care, based on the standards applicable to custodians in the relevant market in which such Eligible Foreign Custodian operates, after considering all factors relevant to the safekeeping of such assets, including, without limitation, those contained in paragraph (c)(1) of the Rule; (b) determine that the Trusts' foreign custody arrangements with each Eligible Foreign Custodian are governed by a written contract with the Custodian which will provide reasonable care for the Portfolios' assets based on the standards specified in paragraph (c)(1) of the Rule; (c) determine that each contract with an Eligible Foreign Custodian shall include the provisions specified in paragraph (c)(2)(i)(A) through (F) of the Rule or, alternatively, in lieu of any or all of such (c)(2)(i)(A) through (F) provisions, such other provisions as BNY determines will provide, in their entirety, the same or a greater level of care and protection for the assets of the Portfolios as such specified provisions; (d) monitor pursuant to the Monitoring System the appropriateness of maintaining the assets of the Portfolios with a particular Eligible Foreign Custodian pursuant to paragraph (c)(1) of the Rule and the performance of the contract governing such arrangement; and (e) advise the Trusts whenever BNY determines under the Monitoring System that an arrangement (including, any material change in the contract governing such arrangement) described in preceding clause (d) no longer meets the requirements of the Rule. 2. For purposes of preceding Section 1 of this Article, BNY's determination of appropriateness shall not include, nor be deemed to include, any evaluation of Country Risks associated with investment in a particular country. For purposes hereof, "Country Risks" shall mean systemic risks of holding assets in a particular country including but not limited to (a) an Eligible Foreign Custodian's use of any depositories that act as or operate a system or a transnational system for the central handling of securities or any equivalent book-entries; (b) such country's financial infrastructure; (c) such country's prevailing custody and settlement practices; (d) nationalization, expropriation or other governmental actions; (e) regulation of the banking or securities industry; (f) currency controls, restrictions, devaluations or fluctuations; and (g) market conditions which affect the orderly execution of securities transactions or affect the value of securities. ARTICLE IV. REPRESENTATIONS 1. Each Trust hereby represents that: (a) this Agreement has been duly authorized, executed and delivered by the Trust, constitutes a valid and legally binding obligation of the Trust enforceable in accordance with its terms, and no statute, regulation, rule, order, judgment or contract binding on the Trust prohibits the Trust's execution or performance of this Agreement; (b) this Agreement has been approved and ratified by the Board at a meeting duly called and at which a quorum was at all times present, and (c) the Board, or at its delegation, the Portfolios' investment advisor, has considered the Country Risks associated with investment in each Specified Country and will have considered such risks prior to any settlement instructions being given to the Custodian with respect to any other country. 2. BNY hereby represents that: (a) BNY is a U. S. Bank as defined in the Rule and is duly organized and existing under the laws of the State of New York, with full power to carry on its businesses as now conducted, and to enter into this Agreement and to perform its obligations hereunder; (b) this Agreement has been duly authorized, executed and delivered by BNY, constitutes a valid and legally binding obligation of BNY enforceable in accordance with its terms, and no statute, regulation, rule, order, judgment or contract binding on BNY prohibits BNY's execution or performance of this Agreement; and (c) BNY has established the Monitoring System. ARTICLE V. CONCERNING BNY 1. BNY shall not be liable for any costs, expenses, damages, liabilities or claims, including attorneys' and accountants' fees, sustained or incurred by, or asserted against, the Trusts except to the extent the same arises out of BNY's failure to exercise the care, prudence and diligence required by Section 2 of Article II hereof. In no event shall BNY be liable to the Trusts, the Board, or any third party for special, indirect or consequential damages, or for lost profits or loss of business, arising in connection with this Agreement. 2. The Trusts shall indemnify BNY and hold it harmless from and against any and all costs, expenses, damages, liabilities or claims, including attorneys' and accountants' fees, sustained or incurred by, or asserted against, BNY by reason or as a result of any action or inaction, arising out of BNY's performance hereunder, provided that the Trusts shall not indemnify BNY to the extent any such costs, expenses, damages, liabilities or claims arises out of BNY's failure to exercise the reasonable care, prudence and diligence required by Section 2 of Article II hereof. 3. The Trusts agree to reimburse BNY for reasonable out-of-pocket expenses it incurs in connection with its performance of services hereunder. 4. BNY shall have only such duties as are expressly set forth herein. In no event shall BNY be liable for any Country Risks associated with investments in a particular country. ARTICLE VI. MISCELLANEOUS 1. This Agreement constitutes the entire agreement between the Trusts and BNY as a foreign custody manager, and no provision in the Foreign Custody Agreement between the Trusts and the Custodian shall affect the duties and obligations of BNY hereunder, nor shall any provision in this Agreement affect the duties or obligations of the Custodian under the Foreign Custody Agreement. 2. Any notice, instruction or other instrument required to be given hereunder may be delivered in person to the offices of the parties as set forth herein during normal business hours or delivered prepaid registered mail or by telex, cable or telecopy to the parties at the following addresses or such other addresses as may be notified by any party from time to time. To a Trust: [Trust Name] c/o The Huntington National Bank 7 Easton Oval Columbus, OH 43219 Attention: Rick Shea - Senior Vice President, Trust Operations Telephone: Telecopy: With a copy to: Victor R. Siclari, Secretary of the Trusts c/o Reed Smith LLP Federated Investors Tower 1001 Liberty Avenue, 12th Floor Pittsburgh, PA 15222-3779 Telephone: (412) 288-1432 Telecopy: (412) 288-3063 To the Custodian: The Bank of New York 100 Church Street, 10th Floor New York, NY 10286 Attention: Telephone: Telecopy: Such notice, instruction or other instrument shall be deemed to have been sufficiently given to a party if received by that party at its address or telecopy number as set forth above, or at such other address or telecopy number as such party may designate from time to time to the other parties in writing. 3. In case any provision in or obligation under this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions shall not in any way be affected thereby. This Agreement may not be amended or modified in any manner except by a written agreement executed by all parties. This Agreement shall extend to and shall be binding upon the parties hereto, and their respective successors and assigns; provided however, that this Agreement shall not be assignable by any party without the written consent of the other parties. 4. This Agreement shall be construed in accordance with the substantive laws of the State of New York, without regard to conflicts of laws principles thereof. The Trusts and BNY hereby consent to the jurisdiction of a state or federal court situated in New York City, New York in connection with any dispute arising hereunder. The Trusts hereby irrevocably waive, to the fullest extent permitted by applicable law, any objection they may now or hereafter have to the laying of venue of any such proceeding brought in such a court and any claim that such proceeding brought in such a court has been brought in an inconvenient forum. The Trusts and BNY hereby irrevocably waive any and all rights to trial by jury in any legal proceeding arising out of or relating to this Agreement. 5. The parties hereto agree that in performing hereunder, BNY is acting solely on behalf of the Trusts and no contractual or service relationship shall be deemed to be established hereby between BNY and any other person by reason of this Agreement. 6. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but such counterparts shall, together, constitute only one instrument. 7. This Agreement shall terminate simultaneously with the termination of the Foreign Custody Agreement between the Trusts and the Custodian, and may otherwise be terminated by either party giving to the other party a notice in writing specifying the date of such termination, which shall be not less than thirty (30) days after the date of such notice. 8. The terms of this Agreement shall govern the relationship between the parties from July 31, 2002 until this Agreement is terminated, as if this Agreement were entered into on July 31, 2002. 9. A copy of the Declaration of Trust of each Trust is on file with the Secretary of the Commonwealth of Massachusetts, and notice is hereby given that each such instrument is executed on behalf of the Board of Trustees of the Trust as Trustees and not individually and that the obligations of this instrument are not binding upon any of the Trustees or shareholders individually but are binding only upon the assets and property of the Trusts; provided, however, that each Declaration of Trust provides that the assets of a particular series of the Trusts shall under no circumstances be charged with liabilities attributable to any other series of the Trusts and that all persons extending credit to, or contracting with or having any claim against a particular series of the Trusts shall look only to the assets of that particular series for payment of such credit, contract or claim. IN WITNESS WHEREOF, the Trusts and BNY have caused this Agreement to be executed by their respective officers, thereunto duly authorized, as of the date first above written. THE HUNTINGTON FUNDS By: /s/ George M. Polatas --------------------------- Title: Vice President Tax Identification No.: HUNTINGTON VA FUNDS By: /s/ George M. Polatas --------------------------- Title: Vice President Tax Identification No.: THE BANK OF NEW YORK By: /s/ Joseph Santangelo Title: Vice President EXHIBIT A Portfolios as of _____________, 2005 Huntington Situs Small Cap Fund, a portfolio of The Huntington Funds Huntington VA Situs Small Cap Fund, a portfolio of the Huntington VA Funds SCHEDULE I Specified Countries See attached Global Custody Network Document SECURITIES SERVICING CUSTODY SERVICES Global Network Management New York September 30, 2005 Global Custody Network The Bank of New York's network of subcustodians extends to 101 markets worldwide. We continually review our network to ensure that it reflects the changing global investment decisions of our clients. Our dedicated, regional network management team monitors local economic, political, regulatory and industry-related events and keeps clients apprised of changes in the investment climate of each market through NetInfo(R), our daily news service. Banks are selected for the network based on a variety of criteria, such as compliance with worldwide regulatory requirements, competitive pricing, general market reputation, SWIFT message capabilities, securities lending support, credit ratings, overall banking relationship with The Bank of New York, and ability to consistently meet our clients' needs. Each bank must meet a set of stringent performance standards prior to selection, which are reexamined during quarterly reviews and frequent on-site visits, ensuring that our clients are uniformly provided with the best subcustodian in each market. Our list of subcustodians is as follows: ------------------------------------ Country/Market Subcustodian(s) ------------------------------------ ------------------------------------ Argentina Citibank, N.A. ------------------------------------ ------------------------------------ Australia National Australia Bank Ltd ------------------------------------ ------------------------------------ Austria Bank Austria Creditanstalt A.G. ------------------------------------ ------------------------------------ Bahrain HSBC Bank Middle East ------------------------------------ ------------------------------------ Bangladesh HSBC ------------------------------------ ------------------------------------ Belgium ING Belgium SA/NV ------------------------------------ ------------------------------------ Benin Societe Generale de Banques en Cote d'Ivoire ------------------------------------ ------------------------------------ Bermuda Butterfield Trust Bermuda Limited ------------------------------------ ------------------------------------ Botswana Barclays Bank of Botswana Ltd. ------------------------------------ ------------------------------------ Brazil Citibank N.A ------------------------------------ ------------------------------------ Country/Market Subcustodian(s) ------------------------------------ ------------------------------------ Bulgaria ING Bank N.V. ------------------------------------ ------------------------------------ Burkina Faso Societe Generale de Banques en Cote d'Ivoire ------------------------------------ ------------------------------------ Canada Royal Bank of Canada ------------------------------------ ------------------------------------ Cayman Islands The Bank of New York ------------------------------------ ------------------------------------ Channel The Bank of New York Islands ------------------------------------ ------------------------------------ Chile Citibank N.A. ------------------------------------ ------------------------------------ China Shanghai HSBC ------------------------------------ ------------------------------------ China Shenzhen HSBC ------------------------------------ ------------------------------------ Colombia Cititrust Colombia S.A. ------------------------------------ ------------------------------------ Costa Rica Banco BCT ------------------------------------ ------------------------------------ Croatia Privredna banka Zegreb d.d. ------------------------------------ ------------------------------------ Cyprus Bank of Cyprus Public Company Ltd. ------------------------------------ ------------------------------------ Czech Republic ING Bank N.V. Prague ------------------------------------ ------------------------------------ Denmark Danske Bank ------------------------------------ ------------------------------------ Ecuador Banco de la Produccion S.A. ------------------------------------ ------------------------------------ Egypt Citibank,N.A. ------------------------------------ ------------------------------------ Estonia Hansabank Limited ------------------------------------ ------------------------------------ Euromarket Clearstream Banking Luxembourg ------------------------------------ ------------------------------------ Euromarket Euroclear Bank ------------------------------------ ------------------------------------ Finland Nordea Bank Finland plc ------------------------------------ ------------------------------------ France BNP Paribas Securities Services/Credit Agricole Investor Services Bank ------------------------------------ ------------------------------------ Germany BHF-BANK AG ------------------------------------ ------------------------------------ Ghana Societe Generale de Banques en Cote d'Ivoire ------------------------------------ ------------------------------------ Greece BNP Paribas Securities Services ------------------------------------ ------------------------------------ Guinea Bissau Societe Generale de Banques en Cote d'Ivoire ------------------------------------ ------------------------------------ Hong Kong HSBC ------------------------------------ ------------------------------------ Hungary HVB Bank Hungary Rt./ ING Bank (Hungary) Rt. ------------------------------------ ------------------------------------ Iceland Landsbani Islands ------------------------------------ ------------------------------------ India HSBC ------------------------------------ ------------------------------------ Indonesia HSBC ------------------------------------ ------------------------------------ Ireland The Bank of New York ------------------------------------ ------------------------------------ Israel Bank Leimi LE-Israel B.M. ------------------------------------ ------------------------------------ Italy Banca Intesa ------------------------------------ ------------------------------------ Ivory Coast Societe Generale de Banques en Cote d'Ivoire ------------------------------------ ------------------------------------ Country/Market Subcustodian(s) ------------------------------------ ------------------------------------ Jamaica FirstCaribbean International Securities Limited ------------------------------------ ------------------------------------ Japan The Bank of Tokyo-Mitsubishi Ltd/Mizuho Corporate Bank, Ltd. ------------------------------------ ------------------------------------ Jordan HSBC Bank Middle East ------------------------------------ ------------------------------------ Kazakhstan HSBC ------------------------------------ ------------------------------------ Kenya Barclays Bank of Kenya Ltd ------------------------------------ ------------------------------------ Latvia Hansabanka Limited ------------------------------------ ------------------------------------ Lebanon HSBC Bank Middle East ------------------------------------ ------------------------------------ Lithuania Vilniaus Bankas ------------------------------------ ------------------------------------ Luxembourg Banque et Caisse e'Epargne de l'Etat ------------------------------------ ------------------------------------ Malaysia HongKong Bank Malaysia Berhad ------------------------------------ ------------------------------------ Mali Societe Generale de Banques en Cote d'Ivoire ------------------------------------ ------------------------------------ Malta HSBC Bank Malta p.l.c. ------------------------------------ ------------------------------------ Mauritius HSBC ------------------------------------ ------------------------------------ Mexico Banco Nacional de Mexico ------------------------------------ ------------------------------------ Morocco Attijariwafa Bank ------------------------------------ ------------------------------------ Namibia Standard Bank Namibia Ltd ------------------------------------ ------------------------------------ Netherlands ING Bank ------------------------------------ ------------------------------------ New Zealand National Australia Bank ------------------------------------ ------------------------------------ Niger Societe Generale de Banques en Cote d'Ivoire ------------------------------------ ------------------------------------ Nigeria Stanbic Bank Nigeria ------------------------------------ ------------------------------------ Norway DnB NOR Bank ASA ------------------------------------ ------------------------------------ Oman HSBC Bank Middle East ------------------------------------ ------------------------------------ Pakistan Standard Chartered Bank ------------------------------------ ------------------------------------ Palestinian HSBC Bank Middle Autonomous East Area ------------------------------------ ------------------------------------ Peru Citibank de Peru ------------------------------------ ------------------------------------ Philippines HSBC ------------------------------------ ------------------------------------ Poland ING Bank Slaski ------------------------------------ ------------------------------------ Portugal Banco Comercial Portugues ------------------------------------ ------------------------------------ Qatar HSBC Bank Middle East ------------------------------------ ------------------------------------ Romania ING Bank Bucharest ------------------------------------ ------------------------------------ Russia Vnestorgbank (Min Fin Bonds only)/ING Bank (Eurasia) ------------------------------------ ------------------------------------ Senegal Societe Generale de Banques en Cote d'Ivoire ------------------------------------ ------------------------------------ Singapore United Overseas Bank Limited/DBS Bank Ltd. ------------------------------------ ------------------------------------ Slovak Ceskoslovenska Republic Obchodni Banka, a.s./ING Bank N.V., pobocka zahranicnej banky ------------------------------------ ------------------------------------ Country/Market Subcustodian(s) ------------------------------------ ------------------------------------ Slovenia Bank Austria Creditanstalt d.d. Ljubljana ------------------------------------ ------------------------------------ South Africa Standard Bank of South Africa Limited ------------------------------------ ------------------------------------ South Korea HSBC ------------------------------------ ------------------------------------ Spain Banco Bilbao Vizcaya Argentaria S.A./Santander Investment Services, S.A. ------------------------------------ ------------------------------------ Sri Lanka HSBC ------------------------------------ ------------------------------------ Swaziland Standard Bank Swaziland Limited ------------------------------------ ------------------------------------ Sweden Skandinaviska Enskilda Banken ------------------------------------ ------------------------------------ Switzerland Credit Suisse, Zurich ------------------------------------ ------------------------------------ Taiwan HSBC ------------------------------------ ------------------------------------ Thailand HSBC/Bangkok Bank Public Company Limited ------------------------------------ ------------------------------------ Togo Societe Generale de Banques en Cote d'Ivoire ------------------------------------ ------------------------------------ Trinidad & Republic Bank Tobago Limited ------------------------------------ ------------------------------------ Tunisia Banque Internationale Arabe de Tunisie ------------------------------------ ------------------------------------ Turkey Turkye Garante Bankasi A.S. ------------------------------------ ------------------------------------ Ukraine ING Bank Ukraine ------------------------------------ ------------------------------------ United Arab HSBC Bank Middle Emirates East ------------------------------------ ------------------------------------ United Kingdom The Bank of New York/ JPMorgan Chase Bank NA (Depository and Clearing Centre) ------------------------------------ ------------------------------------ United States The Bank of New York ------------------------------------ ------------------------------------ Uruguay BankBoston, N.A. ------------------------------------ ------------------------------------ Venezuela Citibank, N.A. ------------------------------------ ------------------------------------ Vietnam HSBC ------------------------------------ ------------------------------------ Zambia Barclays Bank of Zambia Ltd. ------------------------------------ ------------------------------------ Zambabwe Barclays Bank of Zimbabwe Ltd. ------------------------------------ For more information about our sub-custodian network, please contact: New York Timothy Faselt, Managing Director Global Network Management at 1 718 315 2020 Boakye Agyarko, Regional Manager Americas, at 1 718 315 2017 Singapore Karen Quek, Regional Manager Asia/Pacific, at 656 432 0232 Brussels Beatriz Molina, Regional Manager, Europe, Middle East and Africa, at 32 2 545 4282