PROFESSIONALLY MANAGED PORTFOLIOS OPERATING EXPENSES LIMITATION AGREEMENT
THIS
OPERATING EXPENSES LIMITATION AGREEMENT
(the
“Agreement”) is effective as of the 31st
day of
January, 2007, by and between Professionally Managed Portfolios, a Massachusetts
business trust (the “Trust”), on behalf of the FundX ETF Upgrader Fund and the
FundX ETF Aggressive Upgrader Fund (the “Funds”), a series of the Trust, and the
Advisor of the Funds, DAL Investment Company, LLC (the “Advisor”).
WITNESSETH:
WHEREAS,
the
Advisor renders advice and services to the Funds pursuant to the terms and
provisions of an Investment Advisory Agreement between the Trust and the Advisor
dated as of the 31st day of January 2007, (the “Investment Advisory Agreement”);
and
WHEREAS,
the
Funds, and each of its respective classes, is responsible for, and has assumed
the obligation for, payment of certain expenses pursuant to the Investment
Advisory Agreement that have not been assumed by the Advisor; and
WHEREAS,
the
Advisor desires to limit the Funds’ Operating Expenses (as that term is defined
in Paragraph 2 of this Agreement) pursuant to the terms and provisions of this
Agreement, and the Trust (on behalf of the Funds) desires to allow the Advisor
to implement those limits;
NOW
THEREFORE,
in
consideration of the covenants and the mutual promises hereinafter set forth,
the parties, intending to be legally bound hereby, mutually agree as follows:
1.
LIMIT ON OPERATING EXPENSES.
The
Advisor hereby agrees to limit each class of the Funds’ current Operating
Expenses to an annual rate, expressed as a percentage of each class’ respective
average annual net assets to the amounts listed in Appendix A (the “Annual
Limits”). In the event that the current Operating Expenses of a class of the
Funds, as accrued each month, exceed its Annual Limit, the Advisor will pay
to
that class of the Funds, on a monthly basis, the excess expense within fifteen
(15) calendar days, or such other period as determined by the Board of Trustees
of the Trust, of being notified that an excess expense payment is due. In the
event that the Board of Trustees of the Trust determines that an excess expense
payment due date be other than fifteen (15) calendar days, the Trust will
provide the Advisor with ten (10) calendar days written notice prior to the
implementation of such other excess expense payment due date.
2.
DEFINITION.
For
purposes of this Agreement, the term “Operating Expenses” with respect to each
class of the Funds, is defined to include all expenses necessary or appropriate
for the operation of the Funds and each of their classes, including the
Advisor’s investment advisory or management fee detailed in the Investment
Advisory Agreement, any Rule 12b-1 fees and other expenses described in the
Investment Advisory Agreement, but does not include any front-end or contingent
deferred loads, taxes, leverage interest, brokerage commissions, expenses
incurred in connection with any merger or reorganization, or extraordinary
expenses such as litigation.
3.
REIMBURSEMENT OF FEES AND EXPENSES.
The
Advisor retains its right to receive reimbursement of any excess expense
payments paid by it pursuant to this Agreement under the same terms and
conditions as it is permitted to receive reimbursement of reductions of its
investment management fee under the Investment Advisory Agreement.
4.
TERM.
This
Agreement shall become effective on the date specified herein and shall remain
in effect indefinitely and for a period of not less than one year, unless sooner
terminated as provided in Paragraph 5 of this Agreement.
5.
TERMINATION.
This
Agreement may be terminated at any time, and without payment of any penalty,
by
the Board of Trustees of the Trust, on behalf of the Funds, upon sixty (60)
days’ written notice to the Advisor. This Agreement may not be terminated by the
Advisor without the consent of the Board of Trustees of the Trust, which consent
will not be unreasonably withheld. This Agreement will automatically terminate
if the Investment Advisory Agreement is terminated, with such termination
effective upon the effective date of the Investment Advisory Agreement’s
termination.
6.
ASSIGNMENT.
This
Agreement and all rights and obligations hereunder may not be assigned without
the written consent of the other party.
7.
SEVERABILITY.
If any
provision of this Agreement shall be held or made invalid by a court decision,
statute or rule, or shall be otherwise rendered invalid, the remainder of this
Agreement shall not be affected thereby.
8.
GOVERNING LAW.
This
Agreement shall be governed by, and construed in accordance with, the laws
of
the State of Delaware without giving effect to the conflict of laws principles
thereof; provided that nothing herein shall be construed to preempt, or to
be
inconsistent with, any federal law, regulation or rule, including the Investment
Company Act of 1940, and the Investment Advisers Act of 1940, and any rules
and
regulations promulgated thereunder.
IN
WITNESS WHEREOF,
the
parties hereto have caused this Agreement to be duly executed and attested
by
their duly authorized officers, all on the day and year first above written.
|
PROFESSIONALLY
MANAGED
PORTFOLIOS
|
DAL
INVESTMENT
COMPANY,
LLC
|
||
| on behalf of the | |||
| FundX ETF Upgrader Fund and FundX ETF Aggressive | |||
| By: | /s/Xxxxxx X. Xxxxxx | By: | /s/Xxxxx X. Xxxxx |
| Name: | Xxxxxx. X. Xxxxxx | Name: | Xxxxx X. Xxxxx |
| Title: | President | Title: | President |
Appendix
A
| Fund | Operating Expense Limit |
| FundX ETF Upgrader Fund |
1.50%
|
| FundX ETF Aggressive Upgrader Fund |
1.50%
|
