INVESTMENT ADVISORY AGREEMENT
INVESTMENT ADVISORY AGREEMENT (the "Agreement") made as of this 19th day of
October, 2016 by and between The Advisors' Inner Circle Fund III (the "Trust"),
a Delaware statutory trust registered as an investment company under the
Investment Company Act of 1940, as amended (the "1940 Act"), and Xxxxxxx
Investment Company, LLC (the "Adviser"), a Delaware limited liability company
with its principal place of business at 0000 Xxxx Xxxx Xxxxxx Xxxxxxxx,
Xxxxxxxxxxx 00000.
W I T N E S S E T H
WHEREAS, the Board of Trustees (the "Board") of the Trust has selected the
Adviser to act as investment adviser to the Trust on behalf of the series set
forth on Schedule A to this Agreement (the "Fund"), as such Schedule may be
amended from time to time upon mutual agreement of the parties, and to provide
certain related services, as more fully set forth below, and to perform such
services under the terms and conditions hereinafter set forth;
NOW, THEREFORE, in consideration of the mutual covenants and benefits set
forth herein, the Trust and the Adviser do hereby agree as follows:
1. THE ADVISER'S SERVICES.
(a) DISCRETIONARY INVESTMENT MANAGEMENT SERVICES. The Adviser shall
act as investment adviser with respect to the Fund. In such capacity, the
Adviser shall, subject to the supervision of the Board, regularly provide
the Fund with investment research, advice and supervision and shall furnish
continuously an investment program for the Fund, consistent with the
investment objectives and policies of the Fund. The Adviser shall
determine, from time to time, what securities shall be purchased for the
Fund, what securities shall be held or sold by the Fund and what portion of
the Fund's assets shall be held uninvested in cash, subject always to the
provisions of the Trust's Agreement and Declaration of Trust, By-Laws and
its registration statement on Form N-1A (the "Registration Statement")
under the 1940 Act, and under the Securities Act of 1933, as amended (the
"1933 Act"), covering Fund shares, as filed with the Securities and
Exchange Commission (the "Commission"), and to the investment objectives,
policies and restrictions of the Fund, as each of the same shall be from
time to time in effect. To carry out such obligations, the Adviser shall
exercise full discretion and act for the Fund in the same manner and with
the same force and effect as the Fund itself might or could do with respect
to purchases, sales or other transactions, as well as with respect to all
other such things necessary or incidental to the furtherance or conduct of
such purchases, sales or other transactions. No reference in this Agreement
to the Adviser having full discretionary authority over the Fund's
investments shall in any way limit the right of the Board, in its sole
discretion, to establish or revise policies in connection with the
management of the Fund's assets or to otherwise exercise its right to
control the overall management of the Fund. The Fund acknowledges that in
rendering investment advisory services to the Fund, the Adviser may, to the
extent permitted by applicable law, use the portfolio management, research,
and other resources of Xxxxxxx Investment Company Limited ("Xxxxxxx U.K."),
a foreign (non-U.S.) affiliate of the Adviser that is not
1
registered under the Advisers Act, but which is a "participating affiliate"
of the Adviser and subject to the regulatory supervision of the Adviser.
For the avoidance of doubt, the Adviser's use of the portfolio management,
research, and other resources of Xxxxxxx U.K. shall not relieve the Adviser
of any of its obligations under this Agreement.
(b) COMPLIANCE. The Adviser agrees to comply with the requirements of
the 1940 Act, the Investment Advisers Act of 1940, as amended (the
"Advisers Act"), the 1933 Act, the Securities Exchange Act of 1934, as
amended (the "1934 Act"), the Commodity Exchange Act and the respective
rules and regulations thereunder, as applicable, as well as with all other
applicable federal and state laws, rules, regulations and case law that
relate to the services and relationships described hereunder and to the
conduct of its business as a registered investment adviser. The Adviser
also agrees to comply with the objectives, policies and restrictions set
forth in the Registration Statement, as amended or supplemented, of the
Fund, and with any policies, guidelines, instructions and procedures
approved by the Board and provided to the Adviser with reasonable notice
prior to implementation. In selecting the Fund's portfolio securities and
performing the Adviser's obligations hereunder, the Adviser shall cause the
Fund to comply with the diversification and source of income requirements
of Subchapter M of the Internal Revenue Code of 1986, as amended (the
"Code"), for qualification as a regulated investment company. The Adviser
shall maintain compliance procedures that it reasonably believes are
adequate to ensure its compliance with the foregoing. No supervisory
activity undertaken by the Board shall limit the Adviser's full
responsibility for any of the foregoing.
(c) PROXY VOTING. The Board has the authority to determine how proxies
with respect to securities that are held by the Fund shall be voted, and
the Board has initially determined to delegate the authority and
responsibility to vote proxies for the Fund's securities to the Adviser. So
long as proxy voting authority for the Fund has been delegated to the
Adviser, the Adviser shall exercise its proxy voting responsibilities. The
Adviser shall carry out such responsibility in accordance with any
instructions that the Board shall provide from time to time, and at all
times in a manner consistent with Rule 206(4)-6 under the Advisers Act and
its fiduciary responsibilities to the Trust. The Adviser shall provide
periodic reports and keep records relating to proxy voting as the Board may
reasonably request or as may be necessary for the Fund to comply with the
1940 Act and other applicable law. Any such delegation of proxy voting
responsibility to the Adviser may be revoked or modified by the Board at
any time.
The Adviser is authorized to instruct the Fund's custodian and/or broker(s)
to forward promptly to the Adviser, or its designated service provider,
copies of all proxies and shareholder communications relating to securities
held in the portfolio of a Fund (other than materials relating to legal
proceedings against the Fund). The Adviser may also instruct the Fund's
custodian and/or broker(s) to provide reports of holdings in the portfolio
of the Fund. The Adviser has the authority to engage a service provider to
assist with administrative functions related to voting Fund proxies. The
Trust shall direct the Fund's custodian and/or broker(s) to provide any
assistance requested by the Adviser in facilitating the use of a service
provider. In no event shall the Adviser have any
2
responsibility to vote proxies that are not received on a timely basis. The
Trust acknowledges that the Adviser, consistent with the Adviser's written
proxy voting policies and procedures, may refrain from voting a proxy if,
in the Adviser's discretion, refraining from voting would be in the best
interests of the Fund and its shareholders.
(d) RECORDKEEPING. The Adviser shall not be responsible for the
provision of administrative, bookkeeping or accounting services to the
Fund, except as otherwise provided herein or as may be necessary for the
Adviser to supply to the Trust or its Board the information required to be
supplied under this Agreement.
The Adviser shall maintain separate books and detailed records of all
matters pertaining to Fund assets advised by the Adviser required by Rule
31a-1 under the 1940 Act (other than those records being maintained by any
administrator, custodian or transfer agent appointed by the Fund) relating
to its responsibilities provided hereunder with respect to the Fund, and
shall preserve such records for the periods and in a manner prescribed
therefore by Rule 31a-2 under the 1940 Act (the "Fund Books and Records").
The Fund Books and Records shall be available to the Board at any time upon
request, shall be delivered to the Trust upon the termination of this
Agreement and shall be available without delay during any day the Trust is
open for business; provided that the Adviser may make and retain copies of
any such records prior to providing them to the Board or the Trust.
(e) HOLDINGS INFORMATION AND PRICING. The Adviser shall provide
regular reports regarding Fund holdings as reasonably requested by the
Fund, and may, on its own initiative, furnish the Trust and its Board from
time to time with whatever information the Adviser believes is appropriate
for this purpose. The Adviser agrees to notify the Trust promptly if the
Adviser reasonably believes that the value of any security held by the Fund
may not reflect fair value. The Adviser agrees to provide upon request any
pricing information of which the Adviser is aware to the Trust, its Board
and/or any Fund pricing agent to assist in the determination of the fair
value of any Fund holdings for which market quotations are not readily
available or as otherwise required in accordance with the 1940 Act or the
Trust's valuation procedures for the purpose of calculating the Fund net
asset value in accordance with procedures and methods established by the
Board.
(f) COOPERATION WITH AGENTS OF THE TRUST. The Adviser agrees to
cooperate with and provide reasonable assistance to the Trust, any Trust
custodian or foreign sub-custodians, any Trust pricing agents and all other
agents and representatives of the Trust with respect to such information
regarding the Fund as such entities may reasonably request from time to
time in the performance of their obligations, provide prompt responses to
reasonable requests made by such persons and establish appropriate
interfaces with each so as to promote the efficient exchange of information
and compliance with applicable laws and regulations.
2. CODE OF ETHICS. The Adviser has adopted a written code of ethics that it
reasonably believes complies with the requirements of Rule 17j-1 under the 1940
Act, which it
3
has provided to the Trust. The Adviser shall ensure that its Access Persons (as
defined in the Adviser's Code of Ethics) comply in all material respects with
the Adviser's Code of Ethics, as in effect from time to time. Upon request, the
Adviser shall provide the Trust with a (i) copy of the Adviser's current Code of
Ethics, as in effect from time to time, and (ii) certification that it has
adopted procedures reasonably necessary to prevent Access Persons from engaging
in any conduct prohibited by the Adviser's Code of Ethics. Annually, upon
request, the Adviser shall furnish a written report, which complies with the
requirements of Rule 17j-1, concerning the Adviser's Code of Ethics to the
Trust's Board. The Adviser shall respond to requests for information from the
Trust as to violations of the Code by Access Persons and the sanctions imposed
by the Adviser. The Adviser shall immediately notify the Trust of any material
violation of the Code, whether or not such violation relates to a security held
by the Fund.
3. INFORMATION AND REPORTING. The Adviser shall provide the Trust and its
officers with such periodic reports concerning the obligations the Adviser has
assumed under this Agreement as the Trust may from time to time reasonably
request.
(a) NOTIFICATION OF BREACH / COMPLIANCE REPORTS. The Adviser shall
notify the Trust's chief compliance officer immediately upon detection of
(i) any material failure to manage the Fund in accordance with its
investment objectives and policies or any applicable law; or (ii) any
material breach of any of the policies, guidelines or procedures of the
Fund or of the Adviser that relate to the Fund. In addition, the Adviser
shall provide a quarterly report regarding the Fund's compliance with its
investment objectives and policies, applicable law, including, but not
limited to the 1940 Act and Subchapter M of the Code, and the Fund's
policies, guidelines or procedures as applicable to the Adviser's
obligations under this Agreement. The Adviser agrees to correct any such
failure promptly and to take any action that the Board may reasonably
request in connection with any such breach applicable to Adviser's
obligations under the Agreement. Upon request, the Adviser shall also
provide the officers of the Trust with supporting certifications in
connection with such certifications of Fund financial statements and
disclosure controls pursuant to the Xxxxxxxx-Xxxxx Act. The Adviser will
promptly notify the Trust in the event (i) the Adviser is served or
otherwise receives notice of any action, suit, proceeding, inquiry or
investigation, at law or in equity, before or by any court, public board,
or body, involving the affairs of the Trust (excluding class action suits
in which the Fund is a member of the plaintiff class by reason of the
Fund's ownership of shares in the defendant) or the compliance by the
Adviser with the federal or state securities laws (excluding industry wide
sweeps) that could reasonably be viewed as material to Adviser's ability to
provide services to the Fund or (ii) an actual change in control of the
Adviser resulting in an "assignment" (as defined in the 1940 Act) has
occurred or is otherwise reasonably expected to occur.
(b) BOARD AND FILINGS INFORMATION. The Adviser will provide the Trust
with any information reasonably requested regarding its management of the
Fund required for any meeting of the Board, or for any shareholder report,
Form N-CSR, Form N-Q, Form N-PX, Form N-SAR, amended registration
statement, proxy statement, or prospectus supplement to be filed by the
Trust with the Commission and the Trust shall receive Adviser's review and
approval prior to making any such filings referring to the Fund. The
4
Adviser will make its officers and employees available to meet with the
Board from time to time on due notice to review its investment management
services to the Fund in light of current and prospective economic and
market conditions and shall furnish to the Board such information as may
reasonably be necessary in order for the Board to evaluate this Agreement
or any proposed amendments thereto.
(c) TRANSACTION INFORMATION. The Adviser shall furnish to the Trust,
upon reasonable request, such information concerning portfolio transactions
as may be necessary to enable the Trust or its designated agent to perform
such compliance testing on the Fund and the Adviser's services as the Trust
may, in its sole discretion, determine to be appropriate. The provision of
such information by the Adviser to the Trust or its designated agent in no
way relieves the Adviser of its own responsibilities under this Agreement.
4. BROKERAGE.
(a) PRINCIPAL TRANSACTIONS. In connection with purchases or sales of
securities for the account of the Fund, neither the Adviser nor any of its
directors, officers or employees will act as a principal or agent or
receive any commission except as permitted by the 1940 Act.
(b) PLACEMENT OF ORDERS. The Adviser shall arrange for the placing of
all orders for the purchase and sale of securities for the Fund's account
with brokers or dealers selected by the Adviser. In the selection of such
brokers or dealers and the placing of such orders, the Adviser is directed
at all times to seek for the Fund best execution under the circumstances.
It is also understood that it is desirable for the Fund that the Adviser
have access to brokerage and research services provided by brokers who may
execute brokerage transactions at a higher cost to the Fund than may result
when allocating brokerage to other brokers, consistent with section 28(e)
of the 1934 Act and any Commission staff interpretations thereof.
Therefore, the Adviser is authorized to place orders for the purchase and
sale of securities for the Fund with such brokers, subject to review by the
Board from time to time with respect to the extent and continuation of this
practice. It is understood that the services provided by such brokers may
be useful to the Adviser in connection with its or its affiliates' services
to other clients.
(c) AGGREGATED TRANSACTIONS. On occasions when the Adviser deems the
purchase or sale of a security to be in the best interest of the Fund as
well as other clients of the Adviser, the Adviser may, to the extent
permitted by applicable law and regulations, aggregate the order for
securities to be sold or purchased. In such event, the Adviser will
allocate securities or futures contracts so purchased or sold, as well as
the expenses incurred in the transaction, in the manner the Adviser
reasonably considers to be equitable and consistent with its fiduciary
obligations to the Fund and to such other clients under the circumstances.
(d) AFFILIATED BROKERS. The Adviser or any of its affiliates may act
as broker in connection with the purchase or sale of securities or other
investments for the Fund,
5
subject to: (a) the requirement that the Adviser seek to obtain best
execution within the policy guidelines determined by the Board and set
forth in the Fund's current Registration Statement; (b) the provisions of
the 1940 Act; (c) the provisions of the Advisers Act; (d) the provisions of
the 1934 Act; and (e) other provisions of applicable law. These brokerage
services are not within the scope of the duties of the Adviser under this
Agreement. Subject to the requirements of applicable law and any procedures
adopted by the Board, the Adviser or its affiliates may receive brokerage
commissions, fees or other remuneration from the Fund for these services in
addition to the Adviser's fees for services under this Agreement.
(e) CONTRACTING AUTHORITY. In the name of the Fund, and which shall be
binding on the Fund, the Adviser is hereby given the authority to negotiate
and enter into agreements and contracts (including, but not limited to,
brokerage agreements, International Swap Dealers Association ("ISDA")
master agreements and schedules thereto, futures agreements, clearing
agreements, Master Securities Forward Transaction Agreements, other master
agreements, other transaction agreements, investment transactions,
confirmations of investment transactions and related documents for
investment transactions and modifications thereto), and make
representations (including representations regarding the purchase of
securities or other assets for investment) that the Adviser deems
appropriate to carry out its duties and services hereunder
5. CUSTODY. Nothing in this Agreement shall permit the Adviser to take or
receive physical possession of cash, securities or other investments of the
Fund.
6. ALLOCATION OF CHARGES AND EXPENSES. The Adviser will bear its own costs
of providing services hereunder. Other than as herein specifically indicated,
the Adviser shall not be responsible for the Fund's expenses, including
brokerage and other expenses incurred in placing orders for the purchase and
sale of securities and other investment instruments.
7. REPRESENTATIONS, WARRANTIES AND COVENANTS.
(a) PROPERLY REGISTERED. The Adviser is registered as an investment
adviser under the Advisers Act, and will remain so registered for the
duration of this Agreement. The Adviser is not prohibited by the Advisers
Act or the 1940 Act from performing the services contemplated by this
Agreement, and to the best knowledge of the Adviser, there is no proceeding
or investigation that is reasonably likely to result in the Adviser being
prohibited from performing the services contemplated by this Agreement. The
Adviser agrees to promptly notify the Trust of the occurrence of any event
that would disqualify the Adviser from serving as an investment adviser to
an investment company. The Adviser is in compliance in all material
respects with all applicable federal and state law in connection with its
investment management operations.
(b) ADV DISCLOSURE. The Adviser has provided the Trust with a copy of
its Form ADV Part 1 as most recently filed with the SEC and its current
Part 2A and will, promptly after filing any amendment to its Form ADV with
the SEC updating its Part 2A, furnish a copy of such Part 2A amendments or
updates to the Trust. The information contained in the Adviser's Form ADV
is accurate and complete in all material respects and does not omit to
state any material fact necessary in order to make the statements
6
made, in light of the circumstances under which they were made, not
misleading. The Trust agrees that the Adviser may provide its Form ADV in
electronic form.
(c) FUND DISCLOSURE DOCUMENTS. The Adviser has reviewed, and Trust
will in the future provide for Adviser's review upon reasonable prior
notice and Adviser shall so review, the Registration Statement, summary
prospectus, prospectus, statement of additional information, periodic
reports to shareholders, reports and schedules prior to filing with the
Commission (including any amendment, supplement or sticker to any of the
foregoing) and advertising and sales material relating to the Fund
(collectively the "Disclosure Documents") and the Adviser represents and
warrants that such Disclosure Documents contain or will contain no untrue
statement of any material fact and do not and will not omit any statement
of material fact required to be stated therein or necessary to make the
statements therein not misleading.
(d) USE OF THE NAME "XXXXXXX The Adviser has the right to use the name
"Xxxxxxx" in connection with its services to the Trust and that, subject to
the terms set forth in Section 8 of this Agreement, the Trust shall have
the right to use the name "Xxxxxxx" in connection with the management and
operation of the Fund. The Adviser is not aware of any threatened or
existing actions, claims, litigation or proceedings that would adversely
affect or prejudice the rights of the Adviser or the Trust to use the name
"Xxxxxxx."
(e) INSURANCE. The Adviser maintains errors and omissions insurance
coverage in an appropriate amount and shall provide prior written notice to
the Trust (i) of any material adverse changes in its insurance policies or
insurance coverage; or (ii) if any material claims are made on its
insurance policies that could reasonably be expected to have a material
adverse effect on the coverage related to its management of the Trust.
Furthermore, the Adviser shall, upon reasonable request, provide the Trust
with any information it may reasonably require concerning the amount of or
scope of such insurance.
(f) NO DETRIMENTAL AGREEMENT. The Adviser represents and warrants that
it has no arrangement or understanding with any party, other than the
Trust, that would influence the decision of the Adviser with respect to its
selection of securities for the Fund, and that all selections shall be done
in accordance with what is in the best interest of the Fund.
(g) CONFLICTS. The Adviser shall act honestly, in good faith and in
the best interests of the Trust including requiring any of its personnel
with knowledge of Fund activities to place the interest of the Fund first,
ahead of their own interests, in all personal trading scenarios that may
involve a conflict of interest with the Fund, consistent with its fiduciary
duties under applicable law.
(h) REPRESENTATIONS. The representations and warranties in this
Section 7 shall be deemed to be made on the date this Agreement is executed
and at the time of delivery of the quarterly compliance report required by
Section 3(a), whether or not specifically referenced in such report.
7
8. THE NAME "XXXXXXX". The Adviser grants to the Trust a license to use the
name "Xxxxxxx" (the "Name") as part of the name of the Fund. The foregoing
authorization by the Adviser to the Trust to use the Name as part of the name of
the Fund is not exclusive of the right of the Adviser itself to use, or to
authorize others to use, the Name; the Trust acknowledges and agrees that, as
between the Trust and the Adviser, the Adviser has the right to use, or
authorize others to use, the Name. The Trust shall (1) only use the Name in a
manner consistent with uses approved by the Adviser; (2) use its best efforts to
maintain the quality of the services offered using the Name; (3) adhere to such
other specific quality control standards as the Adviser may from time to time
promulgate; and (4) protect the reputation and goodwill of the Name. The Trust
acknowledges that the name Xxxxxxx and the trademark associated therewith are
the valuable property of the Adviser The Trust will (a) submit to Adviser for
review and preapproval prior to use any promotional materials using the Name;
and (b) change the name of the Fund within one month of its receipt of the
Adviser's request, or such other shorter time period as may be required under
the terms of a settlement agreement or court order, so as to eliminate all
reference to the Name and will not thereafter transact any business using the
Name in the name of the Fund; provided, however, that to the extent required by
law, the Trust may continue to use beyond such date any supplies of
prospectuses, marketing materials and similar documents that the Trust had on
the date of such name change in quantities not exceeding those historically
produced and used in connection with such Fund
9. ADVISER'S COMPENSATION. The Fund shall pay to the Adviser, as
compensation for the Adviser's services hereunder, a fee, determined as
described in Schedule A that is attached hereto and made a part hereof. Such fee
shall be computed daily and paid not less than monthly in arrears by the Fund.
The method for determining net assets of the Fund for purposes hereof shall
be the same as the method for determining net assets for purposes of
establishing the offering and redemption prices of Fund shares as described in
the Fund's prospectus. In the event of termination of this Agreement, the fee
provided in this Section shall be computed on the basis of the period ending on
the last business day on which this Agreement is in effect subject to a pro rata
adjustment based on the number of days elapsed in the current month as a
percentage of the total number of days in such month.
10. INDEPENDENT CONTRACTOR. In the performance of its duties hereunder, the
Adviser is and shall be an independent contractor and, unless otherwise
expressly provided herein or otherwise authorized in writing, shall have no
authority to act for or represent the Trust or the Fund in any way or otherwise
be deemed to be an agent of the Trust or the Fund. If any occasion should arise
in which the Adviser gives any advice to its clients concerning the shares of
the Fund, the Adviser will act solely as investment counsel for such clients and
not in any way on behalf of the Fund.
11. ASSIGNMENT AND AMENDMENTS. This Agreement shall automatically
terminate, without the payment of any penalty, in the event of its assignment
(as defined in section 2(a)(4) of the 1940 Act); provided that such termination
shall not relieve the Adviser of any liability incurred hereunder.
8
This Agreement may not be added to or changed orally and may not be
modified or rescinded except by a writing signed by the parties hereto and in
accordance with the 1940 Act, when applicable.
12. DURATION AND TERMINATION.
This Agreement shall become effective as of the date executed and shall
remain in full force and effect continually thereafter, subject to renewal as
provided in Section 12(c) and unless terminated automatically as set forth in
Section 11 hereof or until terminated as follows:
(a) The Trust may cause this Agreement to terminate either (i) by vote
of its Board or (ii) with respect to the Fund, upon the affirmative vote of
a majority of the outstanding voting securities of the Fund, in each case
upon at least 15 days' written notice to Adviser ; or
(b) The Adviser may at any time terminate this Agreement by not more
than sixty (60) days' nor less than thirty (30) days' written notice
delivered or mailed by registered mail, postage prepaid, to the Trust; or
(c) This Agreement shall automatically terminate two years from the
date of its execution unless its renewal is specifically approved at least
annually thereafter by (i) a majority vote of the Trustees, including a
majority vote of such Trustees who are not interested persons of the Trust
or the Adviser, at a meeting called for the purpose of voting on such
approval; or (ii) the vote of a majority of the outstanding voting
securities of the Fund; provided, however, that if the continuance of this
Agreement is submitted to the shareholders of the Fund for their approval
and such shareholders fail to approve such continuance of this Agreement as
provided herein, the Adviser may continue to serve hereunder as to the Fund
in a manner consistent with the 1940 Act and the rules and regulations
thereunder; and
(d) Termination of this Agreement pursuant to this Section shall be
without payment of any penalty.
In the event of termination of this Agreement for any reason, the Adviser
shall, immediately upon notice of termination or on such later date as may be
specified in such notice, cease all activity on behalf of the Fund and with
respect to any of its assets, except as otherwise required by any fiduciary
duties of the Adviser under applicable law. In addition, the Adviser shall
deliver the Fund Books and Records to the Trust by such means and in accordance
with such schedule as the Trust shall direct (and may retain a copy of such
books and records) and shall otherwise cooperate, as reasonably directed by the
Trust, in the transition of portfolio asset management to any successor of the
Adviser.
13. CERTAIN DEFINITIONS. For the purposes of this Agreement:
(a) "Affirmative vote of a majority of the outstanding voting
securities of the Fund" shall have the meaning as set forth in the 1940
Act, subject, however, to such exemptions as may be granted by the
Commission under the 1940 Act or any
9
interpretations of the Commission staff.
(b) "Interested persons" and "Assignment" shall have their respective
meanings as set forth in the 1940 Act, subject, however, to such exemptions
as may be granted by the Commission under the 1940 Act or any
interpretations of the Commission staff.
14. LIABILITY OF THE ADVISER.
(a) The Adviser shall have responsibility for the accuracy and
completeness in all material respects (and liability for the lack thereof)
of statements in the Fund's Disclosure Documents relating to the Adviser
and its affiliates, the Fund's investment strategies and related risks and
other information supplied by Adviser for inclusion therein.
The Adviser shall not be deemed by virtue of this Agreement to have
made any representation or warranty that any level of investment
performance or level of investment results will be achieved or that
Adviser's overall management of the Fund will be successful. The Fund
understands that investment decisions made for the Fund by the Adviser are
subject to various market, currency, economic, political and business
risks, and that those investment decisions will not always be profitable.
(c) The Adviser shall indemnify and hold harmless the Trust, each
affiliated person of the Trust within the meaning of Section 2(a)(3) of the
1940 Act, and each person who controls the Trust within the meaning of
Section 15 of the 1933 Act (any such person, an "Trust Indemnified Party")
against any and all losses, claims, damages, expenses or liabilities
(including the reasonable cost of investigating and defending any alleged
loss, claim, damage, expense or liability and reasonable counsel fees
incurred in connection therewith) to which any such person may become
subject under the 1933 Act, the 1934 Act, the 1940 Act or other federal or
state statutory law or regulation, at common law or otherwise, insofar as
such losses, claims, damages, expenses or liabilities (or actions in
respect thereof) arise out of or are based upon: (i) a material breach by
the Adviser of this Agreement or of the representations and warranties made
by the Adviser herein; (ii) any Improper Investment; (iii) any untrue
statement or alleged untrue statement of a material fact contained in any
Disclosure Document or the omission or alleged omission from a Disclosure
Document of a material fact required to be stated therein or necessary to
make the statements therein not misleading; or (iv) the Adviser's negligent
performance or non-performance of its duties hereunder; provided, however,
that nothing herein shall be deemed to protect the Trust or any Trust
Indemnified Party who is a Trustee or officer of the Trust against any
liability to the Trust or to its shareholders to which the Trust or such
Trust Indemnified Party would otherwise be subject by reason of willful
misfeasance, bad faith, negligence or reckless disregard of the duties
involved in the conduct of such person's office with the Trust or its
duties under this Agreement.
10
15. ENFORCEABILITY. Any term or provision of this Agreement which is
invalid or unenforceable in any jurisdiction shall, as to such jurisdiction be
ineffective to the extent of such invalidity or unenforceability without
rendering invalid or unenforceable the remaining terms or provisions of this
Agreement or affecting the validity or enforceability of any of the terms or
provisions of this Agreement in any other jurisdiction.
16. LIMITATION OF LIABILITY. The parties to this Agreement acknowledge and
agree that all litigation arising hereunder, whether direct or indirect, and of
any and every nature whatsoever shall be satisfied solely out of the assets of
the affected Fund and that no Trustee, officer or holder of shares of beneficial
interest of the Fund shall be personally liable for any of the foregoing
liabilities.
17. CHANGE IN THE ADVISER'S CONTROL OR MANAGEMENT. The Adviser agrees that
it shall notify the Trust of any actual change in control or management of
Xxxxxxx within the meaning of Rules 2a-6 and 202(a)(1)-1 under the 1940 Act and
Advisers Act, respectively, either prior to or promptly after such change.
18. TRACK RECORD. Notwithstanding anything else to the contrary herein, the
Adviser shall retain a right to use the investment performance and track record
of the Fund (including in marketing materials) to the extent permitted by law.
Further, for the avoidance of doubt, the Adviser shall be entitled to retain a
copy and use records of each of its transactions and other records pertaining to
the Fund as are necessary to support any such uses of the investment performance
and track record.
19. JURISDICTION. This Agreement shall be governed by and construed in
accordance with the substantive laws of the State of Delaware and the
Sub-Adviser consents to the jurisdiction of courts, both state and federal, in
Delaware, with respect to any dispute under this Agreement.
20. PARAGRAPH HEADINGS. The headings of paragraphs contained in this
Agreement are provided for convenience only, form no part of this Agreement and
shall not affect its construction.
21. COUNTERPARTS. This Agreement may be executed simultaneously in two or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.
11
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
signed on their behalf by their duly authorized officers as of the date first
above written.
THE ADVISORS' INNER CIRCLE FUND III, on behalf of the
Fund(s) listed on Schedule A
By: /s/ Xxxxxxx Xxxxxxx
-------------------
Name: Xxxxxxx Xxxxxxx
Title: President
Xxxxxxx Investment Company, LLC
By: /s/ Xxxxx Xxxxxxxxx
-------------------
Name: Xxxxx Xxxxxxxxx
Title: President & COO
12
SCHEDULE A
TO THE
INVESTMENT ADVISORY AGREEMENT
DATED OCTOBER 19, 2016 BETWEEN
THE ADVISORS' INNER CIRCLE FUND III
AND
XXXXXXX INVESTMENT COMPANY, LLC
The Trust will pay to the Adviser as compensation for the Adviser's services
rendered, a fee, computed daily at an annual rate based on the average daily
net assets of the Fund in accordance the following fee schedule:
FUND RATE
--------------------------------------------------------------------------------
Xxxxxxx Investment Company Strategic European Equities Fund 1.50%
A-1
