EXPENSE LIMITATION AGREEMENT
EXPENSE LIMITATION AGREEMENT, effective as of __________ __, 2011 by and between
Xxxxxx, Xxxxxx & Company, L.P. (the "Adviser") and The Advisors' Inner Circle
Fund (the "Trust") (the "Agreement"), on behalf of each series of the Trust set
forth in Schedule A attached hereto (each a "Fund," and collectively, the
"Funds").
WHEREAS, the Trust is a Massachusetts voluntary association (commonly known as a
business trust) organized under an Agreement and Declaration of Trust, dated
July 18, 1991, as amended and restated as of February 18, 1997 (the "Declaration
of Trust"), and is registered under the Investment Company Act of 1940, as
amended (the "1940 Act"), as an open-end management company of the series type,
and each Fund is a series of the Trust;
WHEREAS, the Trust and the Adviser have entered into an Investment Advisory
Agreement dated ___________ __, 2011 (the "Advisory Agreement"), pursuant to
which the Adviser provides investment advisory services to each Fund;
WHEREAS, the Trust and the Adviser have determined that it is appropriate and in
the best interests of each Fund and its shareholders to maintain the expenses of
each Fund at a level below the level to which each such Fund would normally be
subject in order to maintain each Fund's expense ratio at the Maximum Annual
Operating Expense Limit (as hereinafter defined) specified for such Fund in
Schedule A hereto;
NOW THEREFORE, the parties hereto agree as follows:
1. EXPENSE LIMITATION.
1.1. APPLICABLE EXPENSE LIMIT. To the extent that the aggregate expenses
of every character incurred by a Fund in any fiscal year, including but not
limited to expenses for which payment has been made through the use of all or a
portion of brokerage commissions (or markups or markdowns) generated by that
Fund (but excluding interest, taxes, brokerage commissions, acquired fund fees
and expenses, other expenditures which are capitalized in accordance with
generally accepted accounting principles, and other extraordinary expenses not
incurred in the ordinary course of such Fund's business) ("Fund Operating
Expenses"), exceed the Maximum Annual Operating Expense Limit, as defined in
Section 1.2 below, such excess amount (the "Excess Amount") shall be the
liability of the Adviser.
1.2. MAXIMUM ANNUAL OPERATING EXPENSE LIMIT. The Maximum Annual
Operating Expense Limit with respect to each Fund shall be the amount specified
in Schedule A based on a percentage of the average daily net assets of each
Fund. That Maximum Annual Operating Expense Limit for each Fund contemplates
that certain expenses for each Fund may be paid through the use of all or a
portion of brokerage commissions (or markups or markdowns) generated by that
Fund.
1.3. METHOD OF COMPUTATION. To determine the Adviser's liability with
respect to the Excess Amount, each month the Fund Operating Expenses for each
Fund shall be annualized as of the last day of the month. If the annualized Fund
Operating Expenses for any month of a Fund exceed the Maximum Annual Operating
Expense Limit of such Fund, the Adviser shall remit to the appropriate Fund or
Funds an amount that is sufficient to pay such Excess Amount.
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1.4. YEAR-END ADJUSTMENT. If necessary, on or before the last day of
the first month of each fiscal year, an adjustment payment shall be made by the
appropriate party in order that the amount of the payments remitted by the
Adviser to the Fund or Funds with respect to the previous fiscal year shall
equal the Excess Amount.
2. TERM AND TERMINATION OF AGREEMENT.
This Agreement shall become effective as of the date hereof and continue in
effect until its termination. This Agreement may be terminated only (i) by the
Board of Trustees, at any time and without payment of any penalty, upon a
majority vote of the Trustees and the Independent Trustees voting separately or
(ii) upon the termination of the Advisory Agreement.
3. MISCELLANEOUS.
3.1. CAPTIONS. The captions in this Agreement are included for
convenience of reference only and in no other way define or delineate any of the
provisions hereof or otherwise affect their construction or effect.
3.2. INTERPRETATION. Nothing herein contained shall be deemed to
require the Trust or the Funds to take any action contrary to the Trust's
Declaration of Trust or By-Laws, or any applicable statutory or regulatory
requirement to which it is subject or by which it is bound, or to relieve or
deprive the Trust's Board of Trustees of its responsibility for and control of
the conduct of the affairs of the Trust or the Funds. 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. The Trust's Declaration of Trust, as
amended from time to time, is on file in the Office of the Secretary of State of
the Commonwealth of Massachusetts. Such Declaration of Trust describes in
detail the respective responsibilities and limitations on liability of the
Trustees, officers, and holders of shares of beneficial interest.
3.3. DEFINITIONS. Any question of interpretation of any term or
provision of this Agreement, including but not limited to the computations of
net asset values and the allocation of expenses, having a counterpart in or
otherwise derived from the terms and provisions of the Advisory Agreement or the
1940 Act, shall have the same meaning as and be resolved by reference to such
Advisory Agreement or the 0000 Xxx.
3.4. 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.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be signed by their
respective officers thereunto duly authorized, as of the day and year first
above written.
THE ADVISORS INNER CIRCLE FUND,
on behalf of each series of the Trust set forth in Schedule A
_______________________________
Xxxxxx X. Xxxxxxxx
Vice President and Secretary
XXXXXX, XXXXXX & COMPANY, L.P.
_______________________________
Principal
SCHEDULE A
MAXIMUM ANNUAL OPERATING EXPENSE LIMITS
This Agreement relates to the following Funds of the Trust:
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NAME OF FUND SHARE CLASS MAXIMUM ANNUAL OPERATING EXPENSE LIMIT
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Xxxxxx Xxxxxx Full Institutional 0.10% through October 31, 2012
Discretion Institutional and 0.20% thereafter
Securitized Fund
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