EXHIBIT (d)1.6
January 1, 2005
Xx. Xxxx X. Xxxxx, President
Xxxxx Xxxxxxx Investment
Management Company
000 X Xxxxxx
Xxxxxx, XX 00000
Re: Advisory Agreement - Manager Compensation
This letter agreement amends the Advisory Agreement (the "Agreement") dated
January 1, 1999 between Xxxxx Xxxxxxx Investment Company ("FRIC") and Xxxxx
Xxxxxxx Investment Management Company ("FRIMCo"). FRIC and FRIMCo desire to
amend and restate Section 6.A. of the Agreement as follows:
6. Compensation of the Manager.
A. As consideration for the Manager's services to the following
Sub-Trusts, the Manager shall receive from each of these Sub-Trusts
an annual management fee, accrued daily at the rate of 1/365th of
the applicable management fee and payable following the last day of
each month, of the following annual percentages of each Sub-Trust's
average daily net assets during the month:
Fund Asset Level Fee
------------------------------- ----------------------------------------------- ----
Diversified Equity First $2 billion .73%
Next $3 billion .72%
Amount over $5 billion .70%
------------------------------- ----------------------------------------------- ----
Special Growth All assets .90%
------------------------------- ----------------------------------------------- ----
Quantitative Equity First $2 billion .73%
Next $3 billion .72%
Amount over $5 billion .70%
------------------------------- ----------------------------------------------- ----
Diversified Bond All assets .40%
------------------------------- ----------------------------------------------- ----
Short Duration Bond All assets .45%
------------------------------- ----------------------------------------------- ----
International Securities First $2 billion .90%
Next $3 billion .89%
Amount over $5 billion .87%
------------------------------- ----------------------------------------------- ----
Multistrategy Bond All assets .60%
------------------------------- ----------------------------------------------- ----
Tax Free Bond All assets .30%
------------------------------- ----------------------------------------------- ----
U.S. Government Money Market All assets .20%
------------------------------- ----------------------------------------------- ----
Tax Free Money Market All assets .20%
------------------------------- ----------------------------------------------- ----
Real Estate Securities All assets .80%
------------------------------- ----------------------------------------------- ----
Emerging Markets All assets 1.15%
------------------------------- ----------------------------------------------- ----
Money Market All assets .20%
------------------------------- ----------------------------------------------- ----
Equity I All assets .55%
Xx. Xxxx X. Xxxxx, President
January 1, 2005
Page 2
Equity II All assets .70%
------------------------------- ----------------------------------------------- ----
Equity Q All assets .55%
------------------------------- ----------------------------------------------- ----
International All assets .70%
------------------------------- ----------------------------------------------- ----
Fixed Income I All assets .25%
------------------------------- ----------------------------------------------- ----
Fixed Income III All assets .50%
------------------------------- ----------------------------------------------- ----
Tax-Managed Large Cap All assets .70%
------------------------------- ----------------------------------------------- ----
Aggressive Equity All assets .20%
------------------------------- ----------------------------------------------- ----
Balanced Strategy All assets .20%
------------------------------- ----------------------------------------------- ----
Moderate Strategy All assets .20%
------------------------------- ----------------------------------------------- ----
Conservative Strategy All assets .20%
------------------------------- ----------------------------------------------- ----
Equity Balanced Strategy All assets .20%
------------------------------- ----------------------------------------------- ----
Tax-Managed Global Equity All assets .20%
------------------------------- ----------------------------------------------- ----
Tax-Managed Mid & Small Cap All assets .20%
------------------------------- ----------------------------------------------- ----
Select Growth All assets .80%
------------------------------- ----------------------------------------------- ----
Select Value All assets .70%
------------------------------- ----------------------------------------------- ----
2010 Strategy All assets .20%
------------------------------- ----------------------------------------------- ----
2020 Strategy All assets .20%
------------------------------- ----------------------------------------------- ----
2030 Strategy All assets .20%
------------------------------- ----------------------------------------------- ----
2040 Strategy All assets .20%
------------------------------- ----------------------------------------------- ----
Xxxxxxx Multi-Manager Principal
Protected during the Offering Period .00%
during the Guarantee and Post Guarantee
Periods: .88%
provided, however, that if, at any time during
the Guarantee Period, 100% of the Fund's assets
are invested in the Fixed Income Portfolio or
the Defeasance Portfolio, the Manager will
waive a portion of its fee up to 0.55% of
average daily net assets of the Fund in respect
of assets of the Fund that are invested in the
Defeasance Portfolio or for any full day during
which the Equity Portfolio constitutes zero (0)
percent of the assets of the Fund (capitalized
terms shall have the meanings assigned to them
in the Financial Guarantee Agreement dated as
of January 17, 2003 among Xxxxx Xxxxxxx
Investment Management Company, Xxxxx Xxxxxxx
Investment Company, Xxxxxxx Xxxxx Xxxxxx Inc.
and Ambac Assurance Corporation)
From this management fee, the Manager shall compensate the Money Managers
as a fiduciary of the Trust.
Xx. Xxxx X. Xxxxx, President
January 1, 2005
Page 3
B. When a Sub-Trust holds cash, securities or other investment assets
which are not treated as net assets of the Sub-Trust for the purpose
of determining the net asset value per share of such Sub-Trust, the
Manager may receive an additional annual fee, accrued daily at the
rate of 1/365th of the fee and payable following the last day of
each month, of 0.07% of the value of such assets for the exercise of
investment supervision over such assets.
If this agreement is acceptable to you, please sign below to indicate your
acceptance and agreement.
Sincerely,
XXXXX XXXXXXX INVESTMENT COMPANY
By: /s/ Xxxx X. Xxxxxxx
-------------------------------------------------
Xxxx X. Xxxxxxx
Treasurer and Chief Accounting Officer
Accepted and Agreed:
XXXXX XXXXXXX INVESTMENT
MANAGEMENT COMPANY
By: /s/ Xxxx X. Xxxxx
-------------------------------------------------
Xxxx X. Xxxxx
President
