EXHIBIT 99.(H)(4)
HOTCHKIS AND WILEY FUNDS
EXPENSE CAP AGREEMENT
Agreement made this 17th day of October, 2001, by and between HOTCHKIS
AND WILEY CAPITAL MANAGEMENT, LLC, as investment adviser (the "Advisor"), and
the HOTCHKIS AND WILEY FUNDS (the "Funds" and each series individually, a
"Fund").
WHEREAS, the Advisor wishes to limit expenses of each Fund listed below
and commit to those limits for a period of time, and
WHEREAS, shareholders of each such Fund benefit from any expense limits
agreed to by the Advisor.
NOW, THEREFORE, the Funds and the Advisor agree to expense limits on the
annual operating expenses of each Fund, as follows:
Expense Limit
Fund (as a percentage of
---- average net assets)
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Class I Class A Class B Class C
------- ------- ------- -------
Large Cap Value 1.05% 1.30% 2.05% 2.05%
Mid-Cap Value 1.15% 1.40% 2.15% 2.15%
Small Cap Value 1.25% 1.50% 2.25% 2.25%
Expense Limit
-------------
Equity Fund for Insurance Expense limited to the management fee.
Companies The Advisor will pay all other operating
expenses.
The Advisor agrees to adhere to the foregoing expense limits through June 30,
2002 and thereafter may change any of them only upon 30 days' prior notice to
the applicable Fund's shareholders.
IN WITNESS WHEREOF, the parties hereto have caused the foregoing
instrument to be executed by duly authorized persons and their seals to be
hereunto affixed, all as of the day and year first above written.
HOTCHKIS AND WILEY FUNDS
By /s/ Xxxxx X. Xxxxxx
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ATTEST:
/s/ Xxxx Xxxxx Xxxxx
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HOTCHKIS AND WILEY
CAPITAL MANAGEMENT, LLC
By /s/ Xxxxx X. Xxxxxx
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ATTEST:
/s/ Xxxx Xxxxx Xxxxx
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