MANAGEMENT AGREEMENT FOR JOHNSON INTERNATIONAL FUND
FOR XXXXXXX INTERNATIONAL
FUND
TO:
|
XXXXXXX
INVESTMENT COUNSEL, INC.
|
0000
XXXX XXXX XXXX
|
XXXXXXXXXX,
XXXX 00000
|
Dear
Sirs:
Xxxxxxx
Mutual Funds Trust (hereinafter referred to as the "Trust") herewith confirms
our agreement with you.
The Trust
has been organized to engage in the business of an investment company. The Trust
currently offers several series of shares to investors, one of which is the
Xxxxxxx International Fund (the "Fund").
You have
been selected to act as the sole investment adviser to the Fund and to provide
certain other services to the Fund, as more fully set forth below, and you are
willing to act as such investment adviser and to perform such services under the
terms and conditions hereinafter set forth. Accordingly, the Trust agrees with
you, as follows, upon the date of the execution of this Agreement.
1. ADVISORY
SERVICES - You
will regularly provide the Fund with such investment advice as you, in your
discretion, deem advisable, and will furnish a continuous investment program for
each of the Fund consistent with the respective series' investment objectives
and policies. You will determine the securities to be purchased for each of the
Fund, the portfolio securities to be held or sold by each of the Fund, and the
portion of the Fund’s assets to be held uninvested, subject always to the
series’ investment objectives, policies, and restrictions, as each of the same
shall be from time to time in effect, and subject further to such policies and
instructions as the Board may from time to time establish. You will advise and
assist the officers of the Trust in taking such steps as are necessary or
appropriate to carry out the decisions of the Board and the appropriate
committees of the Board regarding the conduct of the business of the
Fund.
2. ALLOCATION OF CHARGES AND
EXPENSES - You
will pay all organizational and operating expenses of the Fund, including the
compensation and expenses of any trustees, officers, and employees of the Trust
and of any other persons rendering any services to the Fund; clerical and
shareholder service staff salaries; office space and other office expenses; fees
and expenses incurred by the Fund in connection with membership in investment
company organizations; legal, auditing and account expenses; non-organizational
expenses of registering shares under federal and state securities laws;
insurance expenses; fees and expenses of the custodian, transfer agent, dividend
disbursing agent, shareholder service agent, plan agent, administrator,
accounting and pricing services agent and underwriter of the Fund; expenses,
including clerical expenses, of issue, sale, redemption or repurchase of shares
of the Fund; the cost of preparing and distributing reports and notices to
shareholders, the cost of printing or preparing prospectuses and statements of
additional information for delivery to the Fund current and prospective
shareholders; the cost of printing or preparing stock certificates or any other
documents, statements or reports to shareholders; expenses of shareholders'
meetings and proxy solicitations; advertising, promotion and other expenses
incurred directly or indirectly in connection with the sale or distribution of
the Fund’ shares (excluding expenses which each Fund is authorized to pay
pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended (the
"1940 Act"); and all other organizational and operating expenses not
specifically assumed by the Fund.
The Fund
will pay all brokerage fees and commissions, taxes, borrowing costs (such as (a)
interest (b) dividend expenses on securities sold short), and their share of
such extraordinary or non-recurring expenses as may arise, including litigation
to which the Trust may be a party and indemnification of the Trust's trustees
and officers with respect thereto. Each Fund will also pay expenses which it is
authorized to pay pursuant to Rule 12b-1 under the 1940 Act. You may obtain
reimbursement from the Fund, at such time or times as you may determine in your
sole discretion, for any of the expenses advanced by you, which the Fund is
obligated to pay, and such reimbursement shall not be considered to be part of
your compensation pursuant to this Agreement.
3. COMPENSATION OF THE
ADVISER - For
all of the services to be rendered and payments to be made as provided in this
Agreement, as of the last day of each month, the Xxxxxxx International Fund will
pay you a fee at the annual rate of 1.40% of the average value of its daily net
assets.
The
average value of the daily net assets of each of the Fund shall be determined
pursuant to the applicable provisions of the Declaration of Trust of the Trust
or a resolution of the Board, if required. If, pursuant to such provisions, the
determination of net asset value of a Fund is suspended for any particular
business day, then for the purposes of this paragraph, the value of the net
assets of the Fund as last determined shall be deemed to be the value of the net
assets may lawfully be determined, on that day. If the determination of the net
asset value of a Fund has been suspended for a period including such month, your
compensation payable at the end of such month shall be computed on the basis of
the value of the net assets of the series as last determined (whether during or
prior to such month).
4. EXECUTION OF PURCHASE AND
SALE ORDERS - In
connection with purchases or sales of portfolio securities for the account of
the Fund, it is understood that you will arrange for the placing of all orders
for the purchase and sale of portfolio securities for the account with brokers
or dealers selected by you, subject to review of this selection by the Board
from time to time. You will be responsible for the negotiation and the
allocation of principal business and portfolio brokerage. In the selection of
such brokers or dealers and the placing of such orders, you are directed at all
times to seek for the series the best qualitative execution, taking into account
such factors as price (including the applicable brokerage commission or dealer
spread), the execution capability, financial responsibility, and responsiveness
of the broker or dealer and the brokerage and research services provided by the
broker or dealer.
You
should generally seek favorable prices and commission rates that are reasonable
in relation to the benefits received. In seeking best qualitative execution, you
are authorized to select brokers or dealers who also provide brokerage and
research services (as those terms are defined in Section 28(e) of the Securities
Exchange Act of 1934) the Trust and/or the other accounts over which you
exercise investment discretion. You are authorized to pay a broker or dealer who
provides such brokerage and research services a commission for executing a
portfolio transaction for the Fund which is in excess of the amount of
commission another broker or dealer would have charged for effecting that
transaction if you determine in good faith that the amount of the commission is
reasonable in relation to the value of the brokerage and research services
provided by the executing broker or dealer. The determination may be viewed in
terms of either a particular transaction or your overall responsibilities with
respect to the Trust and to accounts over which you exercise investment
discretion. The Trust and you understand and acknowledge that, although the
information may be useful to the Fund and you, it is not possible to place a
dollar value on such information. The Board shall periodically review the
commissions paid by the Fund to determine if the commissions paid over
representative periods of time were reasonable in relation to the benefits to
the Fund.
Consistent
with the Rules of Fair Practice of the National Association of Securities
Dealers, Inc. and subjective to seeking best qualitative execution as described
above, you may give consideration to sales of shares of the Trust as a factor in
the selection of brokers and dealers to execute the Trust portfolio
transactions.
Subject
to the provisions of the 1940 Act and other applicable law, you or any of your
affiliates may retain compensation in connection with effecting the Fund’s
portfolio transactions, including transactions effected through others. If any
occasion should arise in which you give any advice to clients of yours
concerning the shares of the Fund, you will act solely as investment counsel for
such client and not in any way on behalf of the Fund. Your services to the Fund
pursuant to this Agreement are not to be deemed to be exclusive and it is
understood that you may render investment advice, management and other services
to others, including other registered investment companies.
5. LIMITATION OF LIABILITY OF
ADVISER - You
may rely on information reasonably believed by you to be accurate and reliable.
Except as may otherwise be required by the 1940 Act or the rules thereunder,
neither you nor your shareholders, officers, directors, employees, agents,
control persons, or affiliates of any thereof shall be subject to any liability
for, or any damages, expenses or losses incurred by the Trust in connection
with, any error of judgment, mistake of law, any act or omission connected with
or arising out of any services rendered under or payments made pursuant to this
Agreement or any other matter to which this agreement relates, except by reason
of willful misfeasance, bad faith, or gross negligence on the part of any such
persons in the performance of your duties under this Agreement or by reason of
reckless disregard by any of such persons of your obligations and duties under
this Agreement.
Any
person, even though also a director, officer, employee, shareholder or agent of
you, who may be or become an officer, director, trustee, employee or agent of
the Trust, shall be deemed, when rendering services to the Trust or acting on
any business of the Trust (other than services or business in connection with
your duties hereunder), to be rendering such services to or acting solely for
the Trust and not as a director, officer, employee, shareholder or agent of you,
or one under your control or direction, even though paid by you.
6. DURATION AND TERMINATION OF
THIS AGREEMENT - This
Agreement shall take effect on the date of its execution and shall remain in
force for a period of two (2) years from the date of its execution and from year
to year thereafter, subject to annual approval by (i) the Board or (ii) a vote
of a majority (as defined in the 0000 Xxx) of the outstanding voting securities
of the Fund, provided that in either event, continuance is also approved by a
majority of the trustees who are not "interested persons" as defined in the 1940
Act of you or the Trust, by vote cast in person at a meeting called for the
purpose of voting such approval.
If the
shareholders of the Fund fail to approve the Agreement in the manner set forth
above, upon request of the Board, you will continue to serve or act in such
capacity for the Fund for the period of time pending required approval of the
Agreement, of a new agreement with you or a different adviser or other
definitive action; provided that the compensation to be paid by the Fund to you
for your services to and payments or the amount you would have received under
this Agreement for furnishing such services and payments.
This
Agreement may, on sixty (60) days written notice, be terminated with respect to
the Fund at any time without the payment of any penalty by the Board, by a vote
of a majority of the outstanding voting securities of the Fund or by you. This
Agreement shall automatically terminate in the event of its
assignment.
7. USE OF
NAME - The
Trust and you acknowledge that all rights to the name "Xxxxxxx" belong to you
and that the Fund is being granted a limited license to use such words in the
name of the Fund. In the event you cease to be the adviser to the Fund, the
Fund’s right to the use of the name "Xxxxxxx" shall automatically cease on the
thirtieth day following the termination of this Agreement. You may also withdraw
the right to the name during the term of this Agreement upon thirty (30) days
written notice by you to the Fund. Nothing contained herein shall impair or
diminish in any respect your right to use the name "Xxxxxxx" in the name of or
in connection with any other business enterprises with which you are or may
become associated. There is no charge to the Fund for the right to use this
name.
8. AMENDMENT OF THIS
AGREEMENT - No
provision of this Agreement may be changed, waived, discharged or terminated
orally, and no amendment of this Agreement shall be effective until approved: a)
by the Board, including a majority of the Trustees who are not interested
persons of you or of the Trust, cast in person at a meeting called for the
purpose of voting on such approval; and b) if and only if required by the 1940
Act, by vote of the holders of a majority of the outstanding voting securities
of the Fund to which the amendment relates.
9. LIMITATION OF LIABILITY TO
TRUST PROPERTY - The
term "Xxxxxxx Mutual Funds Trust" means and refers to the Trustees from time to
time serving under the Trust's Declaration of Trust as the same may subsequently
thereto have been, or subsequently hereto be, amended. It is expressly agreed
that the obligations of the Trust hereunder shall not be binding upon any of the
trustees, shareholders, nominees, officers, agents, or employees of the Trust,
personally, but bind only the trust property of the Trust, as provided in the
Declaration of Trust of the Trust. The execution and delivery of this Agreement
have been authorized by the trustees and shareholders of the Fund and signed by
officers of the Trust, acting as such, and neither such authorization by such
trustees and shareholders nor such execution and delivery by such officers shall
be deemed to have been made by any of them individually or to impose any
liability on any of them personally, but shall bind only the trust property of
the Trust as provided in its Declaration of Trust. A copy of the Agreement of
Declaration of Trust of the Trust is on file with the Secretary of the State of
Ohio.
10. SEVERABILITY - In the
event any provision of this Agreement is determined to be void or unenforceable,
such determination shall not affect the remainder of this Agreement, which shall
continue to be in force.
11. QUESTIONS OF
INTERPRETATION - This
Agreement
shall be governed by the laws of the State of Ohio. Any question of
interpretation of any term or provision of this Agreement having a counterpart
in or otherwise derived from a term or provision of the 1940 Act, shall be
resolved by reference to such term or provision of the 1940 Act and to
interpretation thereof, if any, by the United States courts or in the absence of
any controlling decision of any such court, by the Securities and Exchange
Commission or its staff. In addition, where the effect of a requirement of the
1940 Act, reflected in any provision of this Agreement, is revised by rule,
regulation, order or interpretation of the Securities and Exchange Commission or
its staff, such provision shall be deemed to incorporate the effect of such
rule, regulation, order or interpretation.
12. NOTICES - Any
notices under this Agreement shall be in writing, addressed and delivered or
mailed postage paid to the other party at such address as such other party may
designate for the receipt of such notice. Until further notice to the other
party, it is agreed that the address of the Trust and your address for this
purpose shall be 0000 Xxxx Xxxx Xxxx, Xxxxxxxxxx, Xxxx 00000.
13. COUNTERPARTS - This
Agreement may be in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.
14. BINDING
EFFECT - Each
of the undersigned expressly warrants and represents that he has the full power
and authority to sign this Agreement on behalf of the party indicated, and that
his signature will operate to bind the party indicated to the foregoing
terms.
15. CAPTIONS - The
captions in this Agreement are included for convenience of reference only and in
no way define or delimit any of the provisions hereof or otherwise affect their
construction or effect.
If you
are in agreement with the foregoing, please sign the form of acceptance on the
accompanying counterpart of this letter and return such counterpart to the
trust, whereupon this letter shall become a binding contract upon the date
thereof.
Yours
very truly,
XXXXXXX
MUTUAL FUNDS TRUST
By:
/s/ Xxxxxxx X. Xxxxxxx
Xxxxxxx
X. Xxxxxxx, President
ATTEST:
By:
/s/ Xxxxxx Xxxxxxxx Dated:
12/3/08
ACCEPTANCE
The
foregoing Management Agreement is hereby accepted.
XXXXXXX
INVESTMENT COUNSEL, INC.
By:
/s/ Xxxxxxx X. Xxxxxxx
Xxxxxxx
X. Xxxxxxx, PresidentATTEST:
By:
/s/ Xxxxxx Xxxxxxxx Dated:
12/3/08