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EXHIBIT (d)(iii)
LETTER AGREEMENT
Driehaus Mutual Funds
00 Xxxx Xxxx Xxxxxx
Xxxxxxx, Xxxxxxxx 00000
This Agreement is made as of this 18th day of December, 1998 between
DRIEHAUS MUTUAL FUNDS, a Delaware business trust (the "Trust") and DRIEHAUS
CAPITAL MANAGEMENT, INC., an Illinois corporation (the "Adviser").
WHEREAS, the Trust and the Adviser have entered into an Investment
Advisory Agreement dated September 25, 1996, as amended by a Letter Agreement
dated December 18, 1997 (the "Advisory Agreement"), under which the Trust has
agreed to retain the Adviser to render investment advisory and management
services to the Driehaus International Growth Fund, the Driehaus Asia Pacific
Growth Fund and the Driehaus Emerging Markets Growth Fund (the "Current
Portfolios"), and the Adviser has agreed to render such services to the Current
Portfolios, together with any other Trust portfolios that may be established
later (collectively, the "Portfolios" and individually a "Portfolio");
WHEREAS, pursuant to Paragraph 2 of the Advisory Agreement, the Trust
hereby notifies the Adviser of its desire to retain the Adviser to render
investment advisory and management services to two additional portfolios to be
known as the Driehaus International Discovery Fund and the Driehaus European
Opportunity Fund (the "New Portfolios"); and
WHEREAS, by signing this Agreement below, the Adviser agrees to render
such services, whereupon the New Portfolios shall become Portfolios under the
Advisory Agreement.
NOW THEREFORE, in consideration of the premises and mutual covenants
set forth herein, the Trust and the Adviser agree as follows:
1. The Trust hereby appoints the Adviser as investment adviser and manager
for the New Portfolios under the Advisory Agreement and the Adviser
hereby accepts such appointment and agrees to perform the services and
duties set forth in the Advisory Agreement on the terms set forth
therein, except as otherwise provided in this Agreement.
2. This Agreement shall become effective as of the date first above
written and, unless sooner terminated as provided in Paragraph 9 of the
Advisory Agreement, shall continue until December 31, 2000. Thereafter,
this Agreement will be extended with respect to a particular New
Portfolio for successive one-year periods ending on December 31 of each
year, subject to the provisions of Paragraph 9 of the Advisory
Agreement.
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3. For the services provided and the expenses assumed under this
Agreement, the Trust shall pay the Adviser a fee, computed daily and
payable monthly, at an annual rate of 1.50% of average daily net assets
of each New Portfolio. For the month and year in which this Agreement
becomes effective or terminates, there shall be an appropriate
proration of such fee on the basis of the number of days that the
Agreement is in effect during the month and year, respectively.
4. All the other terms and conditions of the Advisory Agreement shall
remain in full effect.
5. This Agreement is hereby incorporated by reference into the Advisory
Agreement and is made a part thereof. In case of a conflict between
this Agreement and the Advisory Agreement, the terms of the Advisory
Agreement are controlling.
IN WITNESS WHEREOF, the Trust and the Adviser have cause this Agreement
to be executed as of the day and year first above written.
DRIEHAUS MUTUAL FUNDS
By: /s/ Xxxxxxx X. Xxxxxxxx
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Xxxxxxx X. Xxxxxxxx
President
ATTEST: /s/ Xxxx X. Xxxxx
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Xxxx X. Xxxxx
Secretary
DRIEHAUS CAPITAL MANAGEMENT, INC.
By: /s/ Xxxxxx X. Xxxxx
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Xxxxxx X. Xxxxx
President
ATTEST: /s/ Xxxx X. Xxxxx
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Xxxx X. Xxxxx
Secretary
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