Exhibit 99(d.1)
MANAGEMENT CONTRACT
LEBENTHAL FUNDS, INC.
(the "Fund")
LEBENTHAL NEW JERSEY MUNICIPAL BOND FUND
(the "Portfolio")
New York, New York
March 25, 2002
Lebenthal Asset Management, Inc.
000 Xxxxxxxx
Xxx Xxxx, Xxx Xxxx
Gentlemen:
We herewith confirm our agreement with you as follows:
1. We propose to engage in the business of investing and
reinvesting our assets in securities of the type, and in accordance with the
limitations, specified in our Articles of Incorporation, By-Laws and
Registration Statement filed with the Securities and Exchange Commission under
the Investment Company Act of 1940 (the "1940 Act") and the Securities Act of
1933, including the Prospectus forming a part thereof (the "Registration
Statement"), all as from time to time in effect, and in such manner and to such
extent as may from time to time be authorized by our Board of Directors. We
enclose copies of the document listed above and will furnish you such amendments
thereto as may be made from time to time.
2. (a) We hereby employ you to manage the investment and
reinvestment of our assets as above specified, and, without limiting the
generality of the foregoing, to provide the management and other services
specified below, including supervising and monitoring the performance of the
Administrator in connection with its duties under our Administrative Services
Agreement.
(b) Subject to the general control of our Board of
Directors, you will make decisions with respect to all purchases and sales of
our portfolio securities. To carry out such decisions, you are hereby
authorized, as our agent and attorney-in-fact for our account and at our risk
and in our name, to place orders for the investment and reinvestment of our
assets. In all purchases, sales and other transactions in our portfolio
securities you are authorized to exercise full discretion and act for us in the
same manner
and with the same force and effect as our corporation itself might or could do
with respect to such purchases, sales or other transactions, as well as with
respect to all other things necessary or incidental to the furtherance or
conduct of such purchases, sales or other transactions.
(c) You will report to our Board of Directors at each
meeting thereof all changes in our Portfolio since your prior report, and will
also keep us in touch with important developments affecting our Portfolio and,
on your initiative, will furnish us from time to time with such information as
you may believe appropriate for this purpose, whether concerning the individual
entities whose securities are included in our Portfolio, the activities in which
such entities engage, Federal income tax policies applicable to our investments,
or the conditions prevailing in the money market or the economy generally. You
will also furnish us with such statistical and analytical information with
respect to the portfolio securities as you may believe appropriate or as we may
reasonably request. In making such purchases and sales of our portfolio
securities, you will comply with the policies set from time to time by our Board
of Directors as well as the limitations imposed by our Articles of Incorporation
and by the provisions of the Internal Revenue Code and the 1940 Act relating to
regulated investment companies and the limitations contained in the Registration
Statement.
(d) It is understood that you will from time to time
employ, subcontract with or otherwise associate yourself with, entirely at your
expense, such persons as you believe to be particularly fitted to assist you in
the execution of your duties hereunder.
(e) You or your affiliates will also furnish us, at your
own expense, such investment advisory supervision and assistance as you may
believe appropriate or as we may reasonably request subject to the requirements
of any regulatory authority to which you may be subject. You and your affiliates
will also pay the expenses of promoting the sale of our shares (other than the
costs of preparing, printing and filing our registration statement, printing
copies of the prospectus contained therein and complying with other applicable
regulatory requirements), except to the extent that we are permitted to bear
such expenses under a plan adopted pursuant to Rule 12b-1 under the 1940 Act or
a similar rule.
3. We agree, subject to the limitations described below, to
be responsible for, and hereby assume the obligation for payment of, all our
expenses, including: (a) brokerage and commission expenses; (b) Federal, state
or local taxes, including issue and transfer taxes incurred by or levied on us;
(c) commitment fees and certain insurance premiums; (d) interest charges on
borrowings; (e) charges and expenses of our custodian; (f) charges, expenses and
payments relating to the issuance, redemption, transfer and dividend disbursing
functions for us; (g) telecommunications expenses; (h) recurring and
nonrecurring legal and accounting expenses, including the determination of net
asset value per share and the maintenance of Portfolio and general
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accounting records; (i) costs of organizing and maintaining our existence as a
corporation; (j) compensation, including directors' fees, of any of our
directors, officers or employees who are not your officers or officers of your
affiliates and costs of other personnel providing clerical, accounting
supervision and other office services to us, as we may request; (k) costs of
stockholders' services; (l) costs of stockholders' reports, proxy solicitations,
and corporate meetings; (m) fees and expenses of registering our shares under
the appropriate Federal securities laws and of qualifying our shares under
applicable state securities laws, including expenses attendant upon the initial
registration and qualification of our shares and attendant upon renewals of, or
amendment to, those registrations and qualifications; (n) expenses of preparing,
printing and delivering our prospectus to our existing shareholders and of
printing shareholder application forms for shareholder accounts; and (o) payment
of the fees provided for herein and in the Shareholder Servicing Agreement,
Administrative Services Agreement and Distribution Agreement. Our obligation for
the foregoing expenses is limited by your agreement to be responsible, while
this Agreement is in effect, for any amount by which our annual operating
expenses (excluding taxes, brokerage, interest and extraordinary expenses)
exceed the limits on investment company expenses prescribed by any state in
which the Portfolio's shares are qualified for sale.
4. We will expect of you, and you will give us the benefit
of, your best judgment and efforts in rendering these services to us, and we
agree as an inducement to your undertaking these services that you will not be
liable hereunder for any mistake of judgment or for any other cause, provided
that nothing herein shall protect you against any liability to us or to our
security holders by reason of willful misfeasance, bad faith or gross negligence
in the performance of your duties hereunder, or by reason of your reckless
disregard of your obligations and duties hereunder.
5. In consideration of the foregoing we will pay you a fee at
the annual rate of .25% of the Portfolio's average daily net assets not in
excess of $50 million, .225% of such assets between $50 million and $100 million
and .20% of such assets in excess of $100 million. Your fee will be accrued by
us daily, and will be payable on the last day of each calendar month for
services performed hereunder during that month or on such other schedule as you
shall request of us in writing. You may waive your right to any fee to which you
are entitled hereunder, provided such waiver is delivered to us in writing.
6. This Agreement will become effective on the date hereof
and shall remain in effect until February 28, 2004 and shall continue in effect
until and thereafter for successive twelve-month periods (computed from each
March 1), provided that such continuation is specifically approved at least
annually by our Board of Directors or by a majority vote of the holders of our
outstanding voting securities, as defined in the 1940 Act, and, in either case,
by a majority of those of our directors who are neither party to this Agreement
nor, other than by their service as directors of the corporation, interested
persons, as defined in the 1940 Act, of any such person who is party to this
Agreement.
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Upon the effectiveness of this Agreement, it shall supersede all previous
Agreements between us covering the subject matter hereof. This Agreement may be
terminated at any time, without the payment of any penalty, by vote of a
majority of our outstanding voting securities, as defined in the 1940 Act, or by
a vote of a majority of our entire Board of Directors, on sixty days' written
notice to you, or by you on sixty days' written notice to us.
7. This Agreement may not be transferred, assigned, sold or
in any manner hypothecated or pledged by you and this Agreement shall terminate
automatically in the event of any such transfer, assignment, sale, hypothecation
or pledge by you. The terms "transfer", "assignment" and "sale" as used in this
paragraph shall have the meanings ascribed thereto by governing law and in
applicable rules or regulations of the Securities and Exchange Commission.
8. Except to the extent necessary to perform your obligations
hereunder, nothing herein shall be deemed to limit or restrict your right, or
the right of any of your officers and directors employees or the who may also be
a director, officer or employee of ours, or of a person affiliated with us, as
defined in the Act, to engage in any other business or to devote time and
attention to the management or other aspects of any other business, whether of a
similar or dissimilar nature, or to render services of any kind to any other
corporation, firm, individual or association.
If the foregoing is in accordance with your understanding, will
you kindly so indicate by signing and returning to us the enclosed copy hereof.
Very truly yours,
LEBENTHAL FUNDS, INC.
Lebenthal New York Municipal Bond Fund
By: /s/ Xxxxxxx X. Xxxxxxxxx
---------------------------------
Name: Xxxxxxx X. Xxxxxxxxx
Title: President
ACCEPTED: March 25, 2002
LEBENTHAL ASSET MANAGEMENT, INC.
By: /s/ Xxxxxxx X. Xxxxx
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Name: Xxxxxxx X. Xxxxx
Title: President
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