21. Related Party Transactions

       Sponsored funds

The Company is an investment advisor to, and has administrative agreements with, sponsored open-end and closed-end funds for which certain employees are officers and/or directors. Substantially all of the services to these entities for which the Company earns a fee, including investment advisory, distribution, shareholder and administrative, are provided under contracts that set forth the services to be provided and the fees to be charged. These contracts are subject to annual review and approval by the funds' boards of directors or trustees. Revenue for services provided or related to these funds for the years ended October 31, 2011, 2010 and 2009 are as follows:

For the years ended October 31, 2011, 2010 and 2009, the Company had investment advisory agreements with certain sponsored funds pursuant to which the Company contractually waived $13.0 million, $18.0 million and $29.1 million, respectively, of investment advisory fees it was otherwise entitled to receive.

Sales proceeds and net realized gains earned on investments in sponsored funds classified as available-for-sale for the years ended October 31, 2011, 2010 and 2009 are as follows:

The Company bears non-advisory expenses on certain sponsored funds for which it earns an all-in management fee and provides subsidies to startup and other smaller sponsored funds to enhance their competitiveness. For the years ended October 31, 2011, 2010 and 2009, expenses of $16.0 million, $16.0 million and $10.3 million, respectively, were incurred by the Company pursuant to these arrangements.

Included in investment advisory and other receivables at October 31, 2011 and 2010 are receivables due from sponsored funds of $82.5 million and $85.9 million, respectively.

Employee Loan Program

The Company has established an Employee Loan Program under which a program maximum of $10.0 million is available for loans to officers (other than executive officers) and other key employees of the Company for purposes of financing the exercise of employee stock options. Loans are written for a seven-year period, at varying fixed interest rates (currently ranging from 1.3 percent to 5.5 percent), are payable in annual installments commencing with the third year in which the loan is outstanding, and are collateralized by the stock issued upon exercise of the option. Loans outstanding under this program, which are full recourse in nature, are reflected as notes receivable from stock option exercises in shareholders' equity and amounted to $4.4 million and $3.2 million at October 31, 2011 and 2010, respectively.