FORM OF INVESTMENT SUB-ADVISORY AGREEMENT
Agreement dated ________________, 2005 by and between Hartford Investment
Financial Services, LLC, a Connecticut limited liability company (the "Manager")
and Oberweis Asset Management, Inc., an Illinois corporation (the "Sub-Adviser")
whose principal office is located at 000 Xxx Xxxxx Xxxxx, Xxxxx 000, Xxxxx
Xxxxxx, Xxxxxxxx, 00000.
WHEREAS, the Manager serves as the investment adviser and manager for The
Hartford Mutual Funds, Inc. (the "Company"), an open-end, management investment
company registered with the Securities and Exchange Commission ("SEC") pursuant
to the Investment Company Act of 1940, as amended ("1940 Act"), that comprises a
number of separate series;
WHEREAS, the Board of Directors of the Company and the Manager desire to
retain the Sub-Adviser to render investment advisory services to that discrete
portion of the assets of one series of the Company, the Hartford Select SmallCap
Growth Fund (the "Portfolio") deemed appropriate from time to time by the
Manager in its discretion (the "Assets"), subject to the periodic review by the
Board of Directors, in the manner and on the terms hereinafter set forth;
NOW, THEREFORE, in consideration of the mutual agreements herein made, the
Manager and the Sub-Adviser agree as follows:
1. APPOINTMENT AND EXPENSES OF THE SUB-ADVISER. The Manager hereby
appoints the Sub-Adviser to serve as sub-adviser with respect to the Assets, and
to perform the services hereinafter set forth and the Sub-Adviser hereby accepts
such appointment. The Sub-Adviser agrees, for the compensation herein provided,
to assume all obligations herein provided and bear all its personnel and other
expenses associated with the performance of its services hereunder. The Company
shall be responsible for the Portfolio's administrative and other direct
expenses, including, but not limited to: (a) fees pursuant to any plan of
distribution that the Portfolio may adopt; (b) the Portfolio's brokerage and
commission expenses, including all ordinary and reasonable transaction costs;
(c) fees and expenses of pricing services used by the Company to determine the
value of the Portfolio's holdings; (d) Federal, state, local and foreign taxes,
including issue and transfer taxes incurred by or levied on the Portfolio; (e)
interest charges on any Portfolio borrowings; (f) the Company's organizational
and offering expenses; (g) the cost of the Company's personnel providing
services to the Company; (h) fees and expenses of registering the Company's
shares under the appropriate Federal securities laws and of qualifying the
Company's shares under applicable state securities laws and pursuant to any
foreign laws; (i) expenses of printing and distributing reports to the Company's
shareholders, proxy materials, prospectuses and distribution of dividends; (j)
costs of the Company's shareholders' meetings and proxy solicitation; (k)
charges and expenses of the Company's custodian and registrar, transfer agent
and dividend disbursing agent; (l) compensation of the Company's officers,
directors and employees that are not employed by the Manager or its affiliates;
(m) the
Company's legal and auditing expenses; (n) cost of certificates representing
shares of the Portfolio; (o) the Company's costs of stationery and supplies; (p)
the Company's insurance expenses; (q) the Company's association membership dues;
and (r) travel expenses for attendance at Board of Directors' meetings by
members of the Board of Directors of the Company who are not employed by the
Manager or its affiliates. The Sub-Adviser shall for all purposes herein be
deemed to be an independent contractor and shall, except as expressly provided
or authorized (whether herein or otherwise), have no authority to act for or on
behalf of the Company in any way or otherwise be deemed an agent of the Company.
2. DUTIES OF THE SUB-ADVISER. The Sub-Adviser will deal in good faith
and with due diligence and will use professional skill, care and judgment in the
performance of its duties under this Agreement. In so doing, the Sub-Adviser
shall formulate and implement a continuing program for the management of the
Assets of the Portfolio. The Sub-Adviser shall amend and update such program
from time to time as financial and other economic conditions warrant. The
Sub-Adviser shall make all determinations with respect to the investment of the
Assets of the Portfolio and shall take such steps as may be necessary to
implement the same, including the placement of purchase and sale orders with
respect to the Assets on behalf of the Portfolio. The Sub-Adviser shall not be
responsible for providing investment advice, and shall not act as sub-adviser,
with respect to any assets of the Company, or any portfolio thereof, other than
the Assets of the Portfolio. The Manager shall be responsible for the
administration of the investment activities of the Company and the Portfolio,
including compliance with the requirements of the 1940 Act, the Internal Revenue
Code of 1986, as amended, and all other applicable federal and state laws and
regulations, except for the investment management activities specifically
delegated to the Sub-Adviser pursuant to this Agreement.
3. POWERS OF THE SUB-ADVISER.
3.1. The Sub-Adviser's power to direct the investment and
reinvestment of the Assets of the Portfolio shall be exercised in accordance
with applicable law, the Company's Articles of Incorporation and the investment
objectives, policies and restrictions set forth in the then-current Prospectus
and Statement of Additional Information (collectively the "Prospectus") relating
to the Portfolio contained in the Company's Registration Statement under the
1940 Act and the Securities Act of 1933, as amended. The Company and/or the
Manager may also place additional limitations on the Sub-Adviser's investment
decisions by written notice to the Sub-Adviser. The Company agrees to provide
promptly to the Sub-Adviser a copy of the documents mentioned above and all
changes made to such documents. The Sub-Adviser shall not be bound by any
changes to the Company's Articles of Incorporation or the Prospectus relating to
the Portfolio and shall have no responsibility to monitor compliance with
limitations or restrictions specifically applicable to the Company imposed by
such changes until the Sub-Adviser has received written notice of any such
change, limitation or restriction.
3.2. While the Sub-Adviser will have day-to-day responsibility for
the discretionary investment decisions to be made on behalf of the Assets of the
Portfolio, the
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Sub-Adviser will be subject to oversight and supervision of the Manager. Such
oversight, however, shall not require prior approval of discretionary investment
decisions made by the Sub-Adviser except as may be required by applicable law,
the Portfolio's investment policies and restrictions and/or any limitations
imposed on the Sub-Adviser by the Company and/or the Manager pursuant to the
preceding paragraph. The Manager shall retain the right to instruct the
Sub-Adviser to effect any transactions necessary to ensure compliance with the
Portfolio's investment policies and restrictions as well as the requirements of
Subchapter M of the Internal Revenue Code and the regulations promulgated
thereunder, or as otherwise required by law.
3.3. In the event the Sub-Adviser's compliance with any amendment
of the Portfolio's investment objectives, policies and restrictions or other
limitations placed on the Sub-Adviser's investment decisions with respect to the
Portfolio would interfere with the completion of any transaction commenced on
behalf of the Portfolio prior to the Sub-Adviser's knowledge of such amendment,
upon receipt of such amendment, the Sub-Adviser shall immediately notify the
Manager of such pending transaction. The Sub-Adviser may proceed with such
transaction unless and until the Sub-Adviser receives written notice from the
Manager to terminate such transaction provided that proceeding with the
transaction would not violate any applicable law, rule or regulation. So long as
the Sub-Adviser complies with all provisions of this Section 3.3, the
Sub-Adviser will not be responsible for any loss that may result from the
completion of the transaction.
3.4. Further, and except as may be qualified elsewhere in this
Agreement, the Sub-Adviser is hereby authorized, for and on behalf of the
Company, with respect to the Assets of the Portfolio, in its discretion to:
(a) exercise any conversion and/or subscription rights
available in connection with any securities or other investments held in
the Portfolio;
(b) maintain all or part of the Portfolio's Assets uninvested
in short-term income-producing instruments for such periods of time as
shall be deemed reasonable and prudent by the Sub-Adviser;
(c) instruct the Custodian, in accordance with the Custodian
Agreement, to deliver for cash received, securities or other cash and/or
securities instruments sold, exchanged, redeemed or otherwise disposed of
from the Portfolio, and to pay cash for securities or other cash and/or
securities instruments delivered to the Custodian and/or credited to the
Portfolio upon acquisition of the same for the Portfolio;
(d) provided the Custodian has timely forwarded the relevant
proxy materials, determine how to vote all proxies received with respect
to securities held in the Portfolio and direct the Custodian as to the
voting of such proxies; and
(e) generally, perform any other act necessary to enable the
Sub-Adviser to carry out its obligations under this Agreement.
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4. SELECTION OF BROKER-DEALERS. The Sub-Adviser shall select the and
dealers through whom transactions on behalf of the Portfolio will be executed
and the markets on or in which such transactions will be executed and shall
place, in the name of the Portfolio or its nominee (or appropriate foreign
equivalent), all such orders. In selecting brokers and dealers to execute such
transactions, and in negotiating brokerage commissions, and in obtaining
research, statistical and other information from brokers and dealers in
connection with Portfolio transactions, the Sub-Adviser shall comply with the
description of the process contained in the Prospectus.
4.1. It is understood that certain other clients (including other
funds, portfolios and accounts) of the Sub-Adviser may have investment
objectives and policies similar to those of the Portfolio and that the
Sub-Adviser may, from time to time, make recommendations that result in the
purchase (or sale) of a particular security by its other clients and the
Portfolio during the same period of time. In connection with its management of
the Portfolio and consistent with its obligations to the Portfolio and such
other clients, the Sub-Adviser, to the extent permitted by applicable laws and
regulations, may, but shall be under no obligation to, aggregate the securities
or investments to be sold or purchased in order to obtain the most favorable
price or lower brokerage commissions and efficient execution. If transactions on
behalf of more than one client during the same period increase the demand for
securities being purchased or the supply of securities being sold, there may be
an adverse effect on price or quantity. In such event, the Sub-Adviser shall
allocate the securities or investments to be purchased or sold, as well as the
expenses incurred in the transactions (including price) in a manner the
Sub-Adviser considers equitable and consistent with its obligations to the
Portfolio and the Sub-Adviser's other clients.
4.2. The Sub-Adviser agrees that it will only enter into
transactions that are covered by Section 10(f), Section 17(a) or Section 17(e)
of the 1940 Act if it has (i) complied with Rule 10f-3, Rule 17a-7 or Rule 17e-1
thereunder, respectively, or the terms of an appropriate exemptive order issued
to the Company by the SEC, and (ii) has complied with the procedures adopted
thereunder by the Board of Directors of the Company which may, pursuant to
authority granted by the Company, be supplemented by interpretive guidelines of
the Manager. The Sub-Adviser shall not consult with any other sub-adviser of the
Company, or any portfolio thereof, concerning any transaction of the Company, or
any portfolio thereof, in securities or other assets other than for purposes of
complying with the conditions of paragraphs (a) and (b) of Rule 12d3-1 under the
1940 Act. Aside from parties that are known by the Sub-Adviser, the Manager
shall promptly notify the Sub-Adviser of any additional parties with whom
engaging in a transaction for the Portfolio would result in a violation of the
1940 Act.
4.3. The Manager hereby agrees and consents that the Sub-Adviser and
its affiliates are authorized to execute agency cross transactions (collectively
"cross transactions") for the Portfolio provided such transactions comply with
Rule 206(3)-2 under the Investment Advisers Act of 1940, as amended (the
"Advisers Act"), Rule 17e-1 under the 1940 Act and any applicable laws or
regulations.
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5. REPORTS AND INFORMATION TO BE PROVIDED BY THE SUB-ADVISER. The
Sub-Adviser shall furnish such information and reports relating to the
Portfolio, its holdings and transactions involving Portfolio securities as the
Manager and/or the Company may require to fulfill its or their legal
responsibilities or to meet regulatory requirements or discharge other duties
they may have. Among the subjects of the reports and information to be provided
by the Sub-Adviser are the following:
(a) Information required by the Manager to determine the Company's
and the Portfolio's compliance with the 1940 Act, the Advisers Act, the
Internal Revenue Code, applicable federal and state securities and
insurance laws and other applicable laws and regulations or regulatory and
taxing authorities in the United States and other relevant countries;
(b) Information required by the Manager to meet the accounting and
operational requirements of the Portfolio. Specific examples of the types
of reports and information that will be needed by the Manager and the
Company are set forth in Exhibit A, attached hereto;
(c) Information required by the Manager to satisfy its reporting
obligations to the Company arising from the Investment Management
Agreement between the Manager and the Company;
(d) Information requested by the Manager to determine the
Portfolio's compliance with Rules 17f-5 and 17f-7 under the 1940 Act,
relating to foreign custodians and sub-custodians and foreign securities
depositories;
(e) Information required by the Manager to determine the
Sub-Adviser's compliance with Rule 17j-1 under the 1940 Act with respect
to the Sub-Adviser's activities on behalf of the Portfolio;
(f) Information required by the Manager to determine compliance with
Rule 10f-3, Rule 17a-7 and Rule 17e-1 under the 1940 Act and Rule 206(3)-2
under the Advisers Act, with respect to the Sub-Adviser's (or its
affiliates') activities on behalf of the Portfolio; and
(g) Information necessary to respond to specific inquiries from the
Company's management and/or Board of Directors.
6. NON-EXCLUSIVE SERVICES, CONFLICTS OF INTEREST AND MATERIAL NONPUBLIC
INFORMATION. The Manager understands that the Sub-Adviser and its affiliates may
furnish investment management and advisory services to others, and that the
Sub-Adviser and its affiliates shall be at all times free, in their discretion,
to make recommendations to, and investments for, others which may or may not
correspond to investments made for the Portfolio. The Manager further
understands that the Sub-Adviser, its affiliates, and any officer, director,
stockholder, employee or any member of their families may or may not have an
interest in the securities whose purchase and sale the Sub-Adviser effects for
the Portfolio. Actions taken by the Sub-Adviser on behalf of the Portfolio may
be the same as, or different from, actions taken by
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the Sub-Adviser on its own behalf or for others or from actions taken by the
Sub-Adviser's affiliates, officers, directors, partners, employees of the
Sub-Adviser or its affiliates, or the family members of such persons or other
investors. The Sub-Adviser represents that it has in effect a code of ethics
that complies with Rule 17j-1 under the 1940 Act and Rule 204A-1 under the
Advisers Act and has procedures in place that, taken together, provide
reasonable enforcement of the code's provisions. Similarly, the Sub-Adviser
represents that, with respect to the use of material nonpublic information, it
has complied, and will continue to comply, with Section 204A of the Advisers Act
and any rules thereunder.
7. DISCLOSURE OF INFORMATION AND CONFIDENTIALITY.
7.1. The Sub-Adviser, the Company and the Manager, either during or
after the termination of this Agreement, are authorized with respect to matters
arising out of this Agreement to make any disclosures and/or participate in any
conduct required by any applicable law, rule, regulation, self-regulating
organization, investment exchange or any other body having regulatory or
enforcement responsibility with respect to any investment business conducted by
the Sub-Adviser on behalf of the Portfolio.
7.2. Subject to Section 7.1, the Sub-Adviser agrees that all
information which has or will come into its possession or knowledge concerning
the Portfolio or its investments in connection with this Agreement shall be held
by the Sub-Adviser in confidence. The Sub-Adviser shall make no use of such
information other than for the performance of this Agreement, shall disclose
such information only to the directors, officers or employees of the Sub-Adviser
or its affiliated firms or of any third party appointed pursuant to this
Agreement requiring such information and shall not disclose such information to
any other person without the written consent of the Company; provided, however,
that to the extent the investments for the Portfolio are similar to investments
for other clients of the Sub-Adviser, the Sub-Adviser may disclose such
investments without direct reference to the Portfolio. The Sub-Adviser may also
include the name of the Portfolio in a representative client list.
7.3. Subject to Section 7.1, the Company and the Manager agree that
all information which has or will come into their possession or knowledge
concerning the operations and procedures of the Sub-Adviser shall be held by the
Company and the Manager in confidence. The Company and the Manager shall make no
use of such information other than for the performance of this Agreement, shall
disclose such information only to their directors, officers or employees or
those of its affiliated firms and shall not disclose such information to any
other person without the written consent of the Sub-Adviser.
7.4. During the term of this Agreement, the Manager and the Company
agree to furnish the Sub-Adviser at its principal office all prospectuses, proxy
statements, reports to shareholders, sales literature or other material prepared
for distribution to shareholders of the Company or the public, which refer to
the Sub-Adviser in any way, prior to use thereof and not to use material without
the Sub-Adviser's prior approval. Similarly, the Sub-Adviser and its affiliates
shall not refer to the Manager, the Company,
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the Portfolio, or any affiliate of the Manager in any advertisement or other
document without the Manager's prior consent. However, the parties to this
Agreement agree that they may reference one another as necessary in regulatory
and other legal filings. Further, the parties agree that they will not
unreasonably withhold permission to use their names or otherwise reference them
in materials used to describe the Portfolio and/or the Company.
8. DEALINGS WITH THE CUSTODIAN. The Manager shall notify the
Sub-Adviser of the appointment of the custodian(s) ("Custodian") for all or any
portion of the Portfolio's Assets, shall provide the Sub-Adviser with a true and
complete copy of each agreement with the Custodian that deals with the
Portfolio's Assets ("Custodian Agreements"), and shall provide the Sub-Adviser
with the names of persons authorized to act on behalf of the Custodian and such
other information as the Sub-Adviser shall reasonably require. The Sub-Adviser
agrees to give instructions in accordance with the terms of the applicable
Custodian Agreements. The Company agrees to provide promptly to the Sub-Adviser
a copy of all relevant Custodian Agreements, and all changes made to such
documents.
9. DELEGATION OF THE SUB-ADVISER'S RESPONSIBILITIES. The Sub-Adviser
may not delegate its investment advisory responsibilities as Sub-Adviser to the
Portfolio. However, the Sub-Adviser may employ, retain or otherwise avail itself
of the services and facilities of persons and entities within its own
organization or any other organization for the purpose of providing the
Sub-Adviser, the Manager or the Portfolio with such information, advice or
assistance, including but not limited to advice regarding economic factors and
trends and advice as to transactions in specific securities, as the Sub-Adviser
may deem necessary, appropriate or convenient for the discharge of its
obligations hereunder or as may otherwise be helpful to the Manager or the
Portfolio, or in the discharge of the Sub-Adviser's overall responsibilities
with respect to the other accounts for which it serves as investment manager or
investment adviser. The Sub-Adviser's acquisition of information, advice or
assistance pursuant to this paragraph shall be at the Sub-Adviser's own expense
and shall not relieve the Sub-Adviser of any of its obligations under this
Agreement.
10. COMPENSATION. For the services to be rendered under this Agreement
and the facilities to be furnished, the Manager shall pay to the Sub-Adviser for
each fiscal year of the Company, a monthly management fee as set forth in
Exhibit B hereto. Expense caps or fee waivers for the Portfolio that may be
agreed to by the Manager, but not agreed to by the Sub-Adviser, shall not cause
a reduction in the amount of the payment to the Sub-Adviser by the Manager. The
monthly management fee shall be paid to the Sub-Adviser not later than the tenth
business day of the month following the month in which such services were
rendered and shall be based upon the average net asset values of all the issued
and outstanding shares of the Assets of the Portfolio, as determined as of the
close of each business day of the month pursuant to the Articles of
Incorporation, Bylaws and currently effective Prospectus of the Portfolio.
Payments of the monthly management fee will be accompanied by documentation that
verifies the calculation of such fee. If the management of the Portfolio by the
Sub-Adviser commences or terminates at any time other than the beginning or end
of a month, the
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management fee shall be prorated for that portion of such month during which
this Agreement was in force.
11. REPRESENTATIONS OF THE SUB-ADVISER. The Sub-Adviser represents and
agrees that:
(a) The Sub-Adviser is registered as an "investment adviser" under
the Advisers Act and is currently in compliance in all material respects
and shall at all times continue to comply in all material respects with
the requirements imposed upon it by the Advisers Act, the 1940 Act, the
Internal Revenue Code, state securities laws and all applicable rules and
regulations thereunder as they relate to the services provided under this
Agreement. The Sub-Adviser will immediately notify the Manager if it
becomes aware of the occurrence of any event that would disqualify the
Sub-Adviser from serving as an investment adviser of an investment company
pursuant to Section 9 of the 1940 Act or any other applicable law or
regulation.
(b) The Sub-Adviser will maintain, keep current and accurate, and
preserve all records with respect to the Portfolio as are required of it
under the Advisers Act and the 1940 Act, in the manner provided by such
Acts and the rules thereunder. The Sub-Adviser agrees that such records
are the property of the Company, and following termination of this
Agreement will be surrendered to the Company promptly upon request except
to the extent that they are required to be retained by the Sub-Adviser
under applicable law. Further, such records shall be open to inspection by
the Company. The Sub-Adviser will also assure that the Company will have
the same access as the Sub-Adviser has to records relating to the
Portfolio that are held by relevant third parties. Such inspections will
be at reasonable times during business hours and only upon reasonable
notice of the Company's desire to make an inspection.
(c) The Sub-Adviser agrees to advise the Manager of any
developments, such as the reassignment of a portfolio manager, that would
require Prospectus disclosure and to provide any necessary information
related to such developments.
(d) The Sub-Adviser has provided the Manager and the Company with a
copy of its most recent and complete Form ADV and will promptly furnish
them with copies of any material amendments to the Form.
(e) The Sub-Adviser shall furnish the Manager with a certificate,
signed by a duly authorized officer of the Sub-Adviser that designates the
officers or employees of the Sub-Adviser having authority to act for and
on behalf of the Sub-Adviser in connection with this Agreement. The
Sub-Adviser agrees that, until such time as the Manager is otherwise
informed in writing by a duly authorized officer of the Sub-Adviser, the
Manager shall be authorized and entitled to rely on any notice,
instruction, request, order or other communication,
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given either in writing or orally, and reasonably believed by the Manager
in good faith to be given by an authorized representative of the
Sub-Adviser.
12. REPRESENTATIONS OF THE MANAGER. The Manager represents and agrees
that:
(a) The Manager is registered as an "investment adviser" under the
Advisers Act and has provided to the Sub-Adviser a copy of its most recent
and complete Form ADV, along with a copy of the Investment Management
Agreement between the Manager and the Company and the current Company
Prospectus regarding the Portfolio. After any amendment to the documents
referenced in this paragraph, the Manager will promptly furnish a copy of
such amended document to the Sub-Adviser. In addition, the Manager will
provide the Sub-Adviser with notice of proposed changes in the Prospectus
and the opportunity to review and comment upon such changes before they
are finalized, wherever possible.
(b) The Manager and the Company are currently in material compliance
and shall at all times continue to be in material compliance with the
relevant requirements of the Advisers Act, the 1940 Act, all applicable
state securities laws, and the rules thereunder, as they pertain to the
Portfolio.
(c) The Manager shall furnish the Sub-Adviser with a certificate,
signed by a duly authorized officer of the Manager that designates the
officers or employees of the Manager having authority to act for and on
behalf of the Manager in connection with this Agreement. The Manager
agrees that, until such time as the Sub-Adviser is otherwise informed in
writing by a duly authorized officer of the Manager, the Sub-Adviser shall
be authorized and entitled to rely on any notice, instruction, request,
order or other communication, given either in writing or orally, and
reasonably believed by the Sub-Adviser in good faith to be given by an
authorized representative of the Manager.
13. LIABILITY, INDEMNIFICATION AND FORCE MAJEURE.
13.1. The Sub-Adviser, its affiliated firms or its or their
employees, officers, or directors will not be liable for any error of judgment
or mistake of law or for any loss suffered by the Portfolio, or its shareholders
in connection with the performance of their duties under this Agreement, except
for loss resulting from willful misfeasance, bad faith or gross negligence on
their part in the performance of their duties or from reckless disregard by them
of their duties under this Agreement.
13.2. The Manager shall indemnify the Sub-Adviser, its affiliated
persons, its officers, directors and employees, for any liability and expenses,
including reasonable attorneys' fees, which may be sustained as a result of the
Manager's willful misconduct, bad faith, gross negligence, reckless disregard of
its duties hereunder or violation of applicable law, including, without
limitation, the 1940 Act and federal and state securities laws, or as a result
of any untrue statement of a material fact contained in
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the Registration Statement, Prospectus covering shares of the Portfolio,
Portfolio marketing materials and advertising, including any amendment thereof
or any supplement thereto, or the omission to state therein a material fact
required to be stated therein or necessary to make the statement therein not
misleading, if such a statement or omission was made other than in reliance upon
and in conformity with written information furnished by the Sub-Adviser, or any
affiliated person of the Sub-Adviser or other than upon verbal information
confirmed by the Sub-Adviser in writing; provided, however, that in no case is
the Manager's indemnity in favor of the Sub-Adviser or any affiliated person or
controlling person of the Sub-Adviser deemed to protect such person against any
liability to which any such person would otherwise be subject by reason of
willful misconduct, bad faith or gross negligence in the performance of its
duties or by reason of its reckless disregard of its obligations and duties
under this Agreement. Without limiting the foregoing, the Sub-Adviser shall have
no liability for any act or omission taken by the Manager, another Sub-Adviser,
or any other third party other than third parties retained, employed or
otherwise acting at the behest of the Sub-Adviser, in respect of any portion of
the Portfolio's assets not managed by the Sub-Adviser pursuant to this
Agreement.
13.3. The Sub-Adviser shall indemnify the Manager, its affiliated
persons, its officers, directors and employees, for any liability and expenses,
including reasonable attorneys' fees, which may be sustained as a result of the
Sub-Adviser's willful misconduct, bad faith, gross negligence, reckless
disregard of its duties hereunder or violation of applicable law, including,
without limitation, the 1940 Act and federal and state securities laws, or as a
result of any untrue statement of a material fact contained in the Registration
Statement, including any amendment thereof or any supplement thereto, or the
omission to state therein a material fact required to be stated therein or
necessary to make the statement therein not misleading, if such a statement or
omission was made in reliance upon and in conformity with written information
furnished by the Sub-Adviser to the Manager, the Portfolio, the Company or any
affiliated person of the Manager, the Portfolio or the Company or upon verbal
confirmation confirmed by the Sub-Adviser in writing, or to the extent of, and
as a result of, the failure of the Sub-Adviser to execute, or cause to be
executed, portfolio investment transactions according to the requirements of the
1940 Act; provided, however, that in no case is the Sub-Adviser's indemnity in
favor of the Manager or any affiliated person or controlling person of the
Manager deemed to protect such person against any liability to which any such
person would otherwise be subject by reason of willful misconduct, bad faith or
gross negligence in the performance of its duties or by reason of its reckless
disregard of its obligations and duties under this Agreement.
13.4. Neither party shall be held responsible for their
nonperformance of any of their obligations under this Agreement by reason of any
cause beyond their control, including any breakdown or failure of transmission,
communication or computer facilities, postal or other strikes or similar
industrial action and the failure of any relevant exchange, clearing house
and/or broker for any reason to perform its obligations; provided, however, that
each party shall have adequate disaster recovery plans and facilities in place
at all times.
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14. TERM, RENEWAL AND TERMINATION.
14.1. This Agreement shall, with respect to the Portfolio, become
effective as of the date first above written and shall remain in force for two
years thereafter, and for successive annual periods thereafter but only so long
as each such continuance is specifically approved at least annually by (1) a
majority of the Directors of the Company who are not parties to this Agreement
or interested persons of any such parties (other than as Directors of the
Company), by vote cast in person at a meeting called for the purpose of voting
on such approval; or (2) a vote of the holders of a majority of the outstanding
voting securities (as defined in the 0000 Xxx) of such Portfolio. It shall be
the duty of the Directors of the Company to request and evaluate, and the duty
of the Manager and Sub-Adviser to furnish, such information as may be reasonably
necessary to evaluate the terms of this Agreement and any renewal hereof.
14.2. This Agreement may be terminated with respect to the Portfolio
at any time without the payment of any penalty by the Portfolio (1) by a vote of
a majority of the entire Board of Directors of the Company on sixty (60) days'
written notice to the Manager and the Sub-Adviser; (2) by vote of the holders of
a majority of the outstanding voting securities (as defined in the 1940 Act) of
such Portfolio; or (3) by the Sub-Adviser or the Manager on 60 days' written
notice to the other and to the Company.
14.3. This Agreement shall automatically terminate in the event of
its assignment, as that term is defined in Section 2(a)(4) of the 1940 Act and
the rules thereunder.
14.4. On the effective date of any termination of this Agreement or
as close to such date as is reasonably possible, the Sub-Adviser shall provide
the Manager with a final report for the Portfolio which will include the fair
market value for each of the Portfolio's investments.
14.5. Upon the Manager's receipt or service of any notice given by
or to the Company concerning the termination of the Manager's appointment as the
investment adviser to the Company, the Manager shall immediately forward a copy
of such notice to the Sub-Adviser and the Sub-Adviser's appointment under this
Agreement shall terminate on the same date as the termination of the Manager's
appointment.
15. AMENDMENT. No material amendment to or modification of this
Agreement shall be effective unless and until it is set forth in a written
amendment signed by the Manager and the Sub-Adviser and approved by the Board of
Directors of the Company and, if required by the 1940 Act, by the vote of a
majority of the outstanding shares of the Portfolio, as defined in the 1940 Act.
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16. AUTHORITY AND ENFORCEABILITY
16.1. Each of the parties to this Agreement hereby represents that
it is duly authorized and empowered to execute, deliver, and perform this
Agreement and that such actions do not conflict with or violate any provision of
law, rule, regulation, other legal requirement, contract or other instrument to
which it is a party or to which it is subject and that this Agreement
constitutes a valid and binding obligation, inuring to the benefit of the
Manager and the Sub-Adviser and their respective successors, enforceable in
accordance with its terms.
16.2. If any provision of this Agreement shall be held or made
invalid or unenforceable by a court decision, statute, rule or otherwise, the
remainder of this Agreement shall not be affected thereby and any such invalid
or unenforceable provision shall be deemed to be replaced with a valid and
enforceable provision that most closely reflects the intention of the parties.
17. APPLICABLE LAW. To the extent that state law is not preempted by the
provisions of any law of the United States heretofore or hereafter enacted, as
the same may be amended from time to time, this Agreement shall be administered,
construed and enforced according to the laws of the State of Connecticut which
apply to contracts made and to be performed in the State of Connecticut.
18. NOTICES. All notices hereunder shall be in writing and shall be
delivered in person or by facsimile (followed by delivery in person) to the
parties at the addresses set forth below:
If to the Manager: Hartford Investment Financial Services, LLC
000 Xxxxxxxxx Xxxxxx,
Xxxxxxxx, XX 00000
Fax #: (860)
Attn:
With copies to: Xxxxxx X. Xxxxxxxxx
Fax #: (000) 000-0000
If to the Sub-Adviser: Oberweis Asset Management, Inc.
000 Xxx Xxxxx Xxxxx, Xxxxx 000
Xxxxx Xxxxxx, Xxxxxxxx 00000
Fax #: ( )
Attn:
or such other name or address as may be given in writing to the other party.
Unless specifically provided elsewhere, notice given as provided above shall be
deemed to have been received, if by personal delivery, on the day of such
delivery, and if by facsimile and mail, on the date on which such facsimile is
sent.
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19. EXECUTION. This Agreement may be executed in two or more counterparts,
each of which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed by their duly authorized officers.
Attest: HARTFORD INVESTMENT
FINANCIAL SERVICES, LLC
By: _________________________
___________________________ Name:
Title:
Attest: OBERWEIS ASSET MANAGEMENT, INC.
By: _________________________
___________________________ Name:
Title:
13
EXHIBIT A
EXAMPLES OF THE ROUTINE ACCOUNTING AND OPERATIONAL
INFORMATION AND DOCUMENTATION REQUIREMENTS OF THE
PORTFOLIO TO BE SATISFIED BY THE SUB-ADVISER
The following information is to be provided to:
The Hartford Select SmallCap Growth Fund
Attn: Mutual Fund Accounting
000 Xxxxxxxxxx Xxxxx
Xxxxxxxx, XX 00000
FAX: (000) 000-0000
PHONE: (000) 000-0000
1. DOCUMENTATION OF TRADES. On a daily basis at approximately 4:30 pm
central time, a listing of that day's executed trades shall be sent via email to
XX.XxxxxxXxxxxxxxxx@xxxxxxxxxxxx.xxx as both an Excel file and a CSV file. Hard
copies of broker confirmations for trades shall be provided upon request of the
Manager within 24 hours of such request.
2. PORTFOLIO HOLDINGS. On a daily basis at approximately 11:00 am central
time, a list of the Portfolio's positions for the prior day shall be sent via
email to XX.XxxxxxXxxxxxxxxx@xxxxxxxxxxxx.xxx. The list should include the
following information where applicable: long description, cusip/sedol number,
maturity date, par/principal amounts, market value, market price, coupon rate
and bond rating.
3. SECURITY PRICING. On a daily basis, by facsimile or other means, in
any instance where the pricing services utilized by the Company's Fund
Accounting Department (the "Department") do not provide a price for a security
held by the Portfolio, provide the Department with reasonable assistance in
determining a price for such security. A broker and a representative of the
Manager shall be available to assist the Sub-Adviser with fair value pricing of
a security on any day that such pricing becomes necessary.
4. CANCELS AND CORRECTS: Trades which are canceled or corrected will be
sent via email to XX.XxxxxxXxxxxxxxxx@xxxxxxxxxxxx.xxx immediately as they occur
in the same format as the daily documentation of trades Excel file. The
Sub-Adviser will call the Manager immediately following a canceling or
correcting trade.
5. COMMISSIONS: On a monthly basis, a report of commissions will be sent
by the 10TH business day following the end of such month via e-mail to:
XX.XxxxxxXxxxxxxxxx@xxxxxxxxxxxx.xxx. Such report shall include the fund number,
trade date, CUSIP, description of the security, transaction code, shares,
principal, commission paid, reason for commission, commission flag and broker
code (broker commission of credit).
EXHIBIT B
MANAGEMENT FEES
NET ASSSET VALUE PERCENTAGE
---------------- ----------
First $100 million .60%
Next $100 million .55%
Over $200 million .50%
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