SUB-ADVISORY AGREEMENT
BETWEEN XXXXX FARGO FUNDS TRUST,
XXXXX FARGO FUNDS MANAGEMENT, LLC AND
GLOBAL INDEX ADVISORS, INC.
This AGREEMENT is made as of this 26th day of June, 2006, between Xxxxx
Fargo Funds Trust (the "Trust"), a statutory trust organized under the laws of
the State of Delaware with its principal place of business at 000 Xxxxxx Xxxxxx,
00xx Xxxxx, Xxx Xxxxxxxxx, Xxxxxxxxxx 00000, Xxxxx Fargo Funds Management, LLC
(the "Adviser"), a limited liability company organized under the laws of the
State of Delaware with its principal place of business at 000 Xxxxxx Xxxxxx,
00xx Xxxxx, Xxx Xxxxxxxxx, Xxxxxxxxxx 00000, and Global Index Advisors, Inc.
(the "Sub-Adviser"), a corporation organized under the laws of the State of
Alabama, with its principal place of business at 0000 Xxxxxxxxx Xxxx, Xxxxx 000,
Xxxxxxx, XX 00000.
WHEREAS, the Adviser and the Sub-Adviser are registered investment
advisers under the Investment Advisers Act of 1940, as amended (the "Advisers
Act"); and
WHEREAS, the Trust is engaged in business as an open-end investment
company with one or more series of shares and is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"); and
WHEREAS, the Trust's Board of Trustees (the "Board") has engaged the
Adviser to perform investment advisory services for each series of the Trust
under the terms of an investment advisory agreement, dated August 6, 2003,
between the Adviser and the Trust (the "Advisory Agreement"); and
WHEREAS, the Adviser, acting pursuant to the Advisory Agreement, wishes
to retain the Sub-Adviser, and the Trust's Board has approved the retention of
the Sub-Adviser, to provide investment advisory services to each series of the
Trust listed in Appendix A hereto as it may be amended from time to time (each a
"Fund" and collectively the "Funds"), and the Sub-Adviser is willing to provide
those services on the terms and conditions set forth in this Agreement;
NOW THEREFORE, the Trust, the Adviser and Sub-Adviser agree as follows:
SECTION 1. APPOINTMENT OF SUB-ADVISER. The Trust is engaged in the
business of investing and reinvesting its assets in securities of the type and
in accordance with the limitations specified in its Declaration of Trust, as
amended or supplemented from time to time, By-Laws (if any) and Registration
Statement filed with the Securities and Exchange Commission (the "Commission")
under the 1940 Act and the Securities Act of 1933 (the "Securities Act"),
including any representations made in the prospectus and statement of additional
information relating to the Funds contained therein and as may be amended or
supplemented from time to time, all in such manner and to such extent as may
from time to time be authorized by the Board.
Subject to the direction and control of the Board, the Adviser manages
the investment and reinvestment of the assets of the Funds and provides for
certain management and other services as specified in the Advisory Agreement.
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Subject to the direction and control of the Board and the Adviser, the
Sub-Adviser shall manage the investment and reinvestment of the assets of the
Funds as contemplated in this Agreement, and without limiting the generality of
the foregoing, shall provide the management and other services specified below
in Section 2(a), all in such manner and to such extent as may be directed from
time to time by the Adviser. Notwithstanding anything in this Agreement to the
contrary, the Adviser shall be responsible for compliance with any statute,
rule, regulation, guideline or investment restriction that applies to the Funds'
investment portfolio as a whole and the Sub-Adviser's responsibility shall be
limited to following any instruction the Sub-Adviser might receive from the
Adviser.
The investment authority granted to the Sub-Adviser shall include the
authority to exercise whatever powers the Trust may possess with respect to any
of its assets held by the Funds, including, but not limited to, the power to
exercise rights, options, warrants, conversion privileges, redemption
privileges, and to tender securities pursuant to a tender offer. The Sub-Adviser
shall not, however, be responsible for voting proxies, for participating in
class actions and/or other legal proceedings on behalf of the Funds, but will
provide such assistance as is reasonably requested by the Adviser.
SECTION 2. DUTIES OF THE SUB-ADVISER.
(a) The Sub-Adviser shall make decisions with respect to all purchases
and sales of securities and other investment assets for the Funds. To carry out
such decisions, the Sub-Adviser is hereby authorized, as agent and
attorney-in-fact for the Trust, for the account of, at the risk of and in the
name of the Trust, to place orders and issue instructions with respect to those
transactions of the Funds. In all purchases, sales and other transactions in
securities and other assets for the Funds, the Sub-Adviser is authorized to
exercise full discretion and act for the Trust and instruct the Fund's custodian
(the "Custodian") in the same manner and with the same force and effect as the
Trust might or could do with respect to such purchases, sales or other
transactions, as well as with respect to all other things necessary or
incidental to the furtherance or conduct of such purchases, sales or other
transactions.
The Sub-Adviser acknowledges that the Funds and other mutual funds
advised by the Adviser (collectively, the "fund complex") may engage in
transactions with certain sub-advisers in the fund complex (and their affiliated
persons) in reliance on exemptions under Rule 10f-3, Rule 12d3-1, Rule 17a-10
and Rule 17e-1 under the 1940 Act. Accordingly, the Sub-Adviser hereby agrees
that it will not consult with any other sub-adviser of a fund in the fund
complex, or an affiliated person of a sub-adviser, concerning transactions for a
fund in securities or other fund assets. With respect to a multi-managed Fund,
the Sub-Adviser shall be limited to managing only the discrete portion of the
Fund's portfolio as may be determined from time-to-time by the Board or the
Adviser, and shall not consult with the sub-adviser as to any other portion of
the Fund's portfolio concerning transactions for the Fund in securities or other
Fund assets. The foregoing is in no way intended to limit the Sub-Adviser from
serving fully in its capacity as administrator to the Dow Xxxxx Target Date
Indexes.
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(b) Following the close of each calendar quarter, the Sub-Adviser will
report to the Board regarding the investment performance of the Fund since the
prior report, and will also keep the Board informed of important developments
known by it to affect the Trust, the Fund and the Sub-Adviser, and on its own
initiative will furnish the Board and the Adviser from time to time with such
information as the Sub-Adviser may believe appropriate, whether concerning the
individual companies whose securities are held by a Fund, the industries in
which they engage, or the economic, social or political conditions prevailing in
each country in which the Fund maintains investments. The Sub-Adviser will also
furnish the Board and the Adviser with such statistical and analytical
information with respect to securities held by the Fund as the Sub-Adviser may
believe appropriate or as the Board or the Adviser reasonably request.
The Sub-Adviser shall promptly notify the Adviser of (i) any changes
regarding the Sub-Adviser that would impact disclosure in the Trust's
Registration Statement, or (ii) any violation of any requirement, provision,
policy or restriction that the Sub-Adviser is required to comply with under
Section 6 of this Agreement. The Sub-Adviser shall, within two business days,
notify both the Adviser and the Trust of any legal process served upon it in
connection with its activities hereunder, including any legal process served
upon it on behalf of the Adviser, the Fund or the Trust. The Sub-Adviser shall
reasonably cooperate with the Custodian in the Custodian's processing of class
actions or other legal proceedings relating to the holdings (historical and/or
current) of the Fund.
(c) The Sub-Adviser may from time to time employ or sub-contract the
services of certain persons as the Sub-Adviser believes to be appropriate or
necessary to assist in the execution of the Sub-Adviser's duties hereunder;
provided, however, that the employment of or sub-contracting to any such person
shall not relieve the Sub-Adviser of its responsibilities or liabilities
hereunder. The cost of performance of such duties shall be borne and paid by the
Sub-Adviser. No obligation may be imposed on the Trust in any such respect.
The Sub-Adviser shall supervise and monitor the activities of
its representatives, personnel and agents in connection with the execution of
its duties and obligations hereunder. The appropriate personnel of the
Sub-Adviser will be made available to consult with the Adviser, the Trust and
the Board at reasonable times and upon reasonable notice concerning the business
of the Trust.
(d) The Sub-Adviser shall maintain records relating to portfolio
transactions and the placing and allocation of brokerage orders as are required
to be maintained by the Trust under the 1940 Act. The Sub-Adviser shall prepare
and maintain, or cause to be prepared and maintained, in such form, for such
periods and in such locations as may be required by applicable law, all
documents and records relating to the services provided by the Sub-Adviser
pursuant to this Agreement required to be prepared and maintained by the Trust
pursuant to the rules and regulations of any national, state, or local
government entity with jurisdiction over the Trust, including the Commission and
the Internal Revenue Service. The books and records pertaining to the Trust
which are in possession of the Sub-Adviser shall be the property of the Trust.
The Trust, or the Trust's authorized representatives (including the Adviser),
shall have access to such books and records at all times during the
Sub-Adviser's normal business hours. Upon the reasonable request of the Trust,
copies of any such books and records shall be provided promptly by the
Sub-Adviser to the Trust or the Trust's authorized representatives.
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SECTION 3. DELIVERY OF DOCUMENTS TO THE SUB-ADVISER. The Adviser has
furnished the Sub-Adviser with true, correct and complete copies of the
following documents:
(a) The Declaration of Trust, as in effect on the date hereof;
(b) The Registration Statement filed with the Commission under
the 1940 Act, including the form of prospectus related to
the Fund included therein;
(c) The Advisory Agreement; and
(d) Written guidelines, policies and procedures adopted by the
Trust.
The Adviser will furnish the Sub-Adviser with all future amendments and
supplements to the foregoing as soon as practicable after such documents become
available. The Adviser shall furnish the Sub-Adviser with any further documents,
materials or information that the Sub-Adviser may reasonably request in
connection with the performance of its duties hereunder.
Sub-Adviser shall not be responsible for compliance with any document,
materials, instruction or other information not provided to Sub-Adviser in a
timely manner, and until a reasonable time after receipt of same by Sub-Adviser.
The Sub-Adviser shall furnish the Adviser with written certifications,
in such form as the Adviser shall reasonably request, that it has received and
reviewed the most recent version of the foregoing documents provided by the
Adviser and that it will comply with such documents in the performance of its
obligations under this Agreement.
SECTION 4. DELIVERY OF DOCUMENTS TO THE ADVISER. The Sub-Adviser has
furnished, and in the future will furnish, the Adviser with true, correct and
complete copies of each of the following documents:
(a) The Sub-Adviser's most recent Form ADV;
(b) The Sub-Adviser's most recent balance sheet; and
(c) The current Code of Ethics of the Sub-Adviser, adopted
pursuant to Rule 17j-1 under the 1940 Act, and annual
certifications regarding compliance with such Code.
In addition, the Sub-Adviser will furnish the Adviser with (i) a
summary of the results of any future examination of the Sub-Adviser by the
Commission or other regulatory agency with respect to the Sub-Adviser's
activities hereunder; and (ii) copies of its policies and procedures adopted
pursuant to Rule 206(4)-7 under the Advisers Act.
The Sub-Adviser will furnish the Adviser with all such documents as
soon as practicable after such documents become available, to the extent that
such documents have been changed materially. The Sub-Adviser shall furnish the
Adviser with any further documents, materials or information as the Adviser may
reasonably request in connection with Sub-Adviser's performance of its duties
under this Agreement, including, but not limited to, information regarding the
Sub-Adviser's financial condition, level of insurance coverage and any
certifications or sub-certifications which may reasonably be requested in
connection with Fund
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registration statements, Form N-CSR filings or other regulatory filings, and
which are appropriately limited to Sub-Adviser's responsibilities under this
Agreement.
SECTION 5. CONTROL BY BOARD. As is the case with respect to the Adviser
under the Advisory Agreement, any investment activities undertaken by the
Sub-Adviser pursuant to this Agreement, as well as any other activities
undertaken by the Sub-Adviser on behalf of the Fund, shall at all times be
subject to the direction and control of the Trust's Board.
SECTION 6. COMPLIANCE WITH APPLICABLE REQUIREMENTS. In carrying out
its obligations under this Agreement, the Sub-Adviser shall at all times comply
with:
(a) investment guidelines, policies and restrictions established by the
Board that have been communicated in writing to the Sub-Adviser;
(b) all applicable provisions of the 1940 Act and the Advisers Act, and
any rules and regulations adopted thereunder;
(c) the Registration Statement of the Trust, as it may be amended from
time to time, filed with the Commission under the Securities Act and the 1940
Act and delivered to the Sub-Adviser;
(d) the provisions of the Declaration of Trust of the Trust, as it may
be amended or supplemented from time to time and delivered to the Sub-Adviser;
(e) the provisions of the Internal Revenue Code of 1986, as amended,
applicable to the Trust or the Fund, and any rules and regulations adopted
thereunder; and
(f) any other applicable provisions of state or federal law, and any
rules and regulations adopted thereunder.
SECTION 7. PROXIES. The Adviser shall have responsibility to vote
proxies solicited with respect to issuers of securities in which assets of the
Fund are invested from time to time in accordance with the Trust's policies on
proxy voting. The Sub-Adviser will provide, when requested by the Adviser,
information on a particular issuer to assist the Adviser in the voting of a
proxy.
SECTION 8. EXPENSES. All of the ordinary business expenses incurred in
the operations of the Fund and the offering of its shares shall be borne by the
Fund unless specifically provided otherwise in this Agreement. The expenses
borne by the Fund include, but are not limited to, brokerage commissions, taxes,
legal, auditing or governmental fees, the cost of preparing share certificates,
custodian, transfer agent and shareholder service agent costs, expense of issue,
sale, redemption and repurchase of shares, expenses of registering and
qualifying shares for sale, expenses relating to Board and shareholder meetings,
the cost of preparing and distributing reports and notices to shareholders, the
fees and other expenses incurred by the Fund in connection with membership in
investment company organizations and the cost of printing
5
copies of prospectuses and statements of additional information distributed to
the Fund's shareholders.
The Sub-Adviser shall pay its own expenses in connection with the
services to be provided by it pursuant to this Agreement. In addition, the
Sub-Adviser shall be responsible for reasonable out-of-pocket costs and expenses
incurred by the Adviser or the Trust: (a) to amend the Trust's registration
statement (other than as part of a normal annual updating of the registration
statement) or supplement the Fund's prospectus, and circulate the same, solely
to reflect a change in the personnel of the Sub-Adviser responsible for making
investment decisions in relation to the Fund; or (b) to obtain shareholder
approval of a new sub-advisory agreement as a result of a "change in control"
(as such term in defined in Section 2(a)(9) of the 0000 Xxx) of the Sub-Adviser,
or to otherwise comply with the 1940 Act, the Securities Act, or any other
applicable statute, law, rule or regulation, as a result of such change.
SECTION 9. COMPENSATION. As compensation for the sub-advisory services
provided under this Agreement, the Adviser shall pay the Sub-Adviser fees,
payable monthly, at the annual rates indicated on Appendix B hereto, as such
Schedule may be amended or supplemented as agreed to in writing by the parties
from time to time. It is understood that the Adviser shall be responsible for
the Sub-Adviser's fee for its services hereunder, and the Sub-Adviser agrees
that it shall have no claim against the Trust or the Fund with respect to
compensation under this Agreement.
SECTION 10. STANDARD OF CARE. The Trust and the Adviser will expect of
the Sub-Adviser, and the Sub-Adviser will give the Trust and the Adviser the
benefit of, the Sub-Adviser's best judgment and efforts in rendering its
services to the Trust, and the Sub-Adviser shall not be liable hereunder for any
mistake in judgment. In the absence of willful misfeasance, bad faith, gross
negligence or reckless disregard of obligations or duties hereunder on the part
of the Sub-Adviser or any of its officers, directors, employees or agents, the
Sub-Adviser shall not be subject to liability to the Adviser, to the Trust or to
any shareholders in the Trust for any act or omission in the course of, or
connected with, rendering services hereunder or for any losses that may be
sustained in the purchase, holding or sale of any security.
Nothing in this Agreement (including Sections 10, 15 or 16) shall be construed
to relieve either the Sub-Adviser or the Adviser of any claims or liability
arising under federal securities laws or any non-waivable provisions of any
other federal or state laws.
SECTION 11. NON-EXCLUSIVITY. The services of the Sub-Adviser to the
Adviser and the Trust are not to be deemed to be exclusive, and the Sub-Adviser
shall be free to render investment advisory and administrative or other services
to others (including other investment companies) and to engage in other
activities. It is understood and agreed that officers or directors of the
Sub-Adviser are not prohibited from engaging in any other business activity or
from rendering services to any other person, or from serving as partners,
officers, directors or trustees of any other firm or trust, including other
investment advisory companies.
It is understood that the Sub-Adviser performs investment advisory
services for various clients, including accounts of clients in which the
Sub-Adviser or associated persons have a
6
beneficial interest. The Sub-Adviser may give advice and take action in the
performance of its duties with respect to any of its other clients, which may
differ from the advice given, or the timing or nature of action taken, with
respect to the assets of the Fund. Nothing in this Agreement shall be deemed to
impose upon the Sub-Adviser any obligation to purchase or sell for the Fund any
security or other property that the Sub-Adviser purchases or sells for its own
accounts or for the account of any other client.
SECTION 12. RECORDS. The Sub-Adviser shall, with respect to orders the
Sub-Adviser places for the purchase and sale of portfolio securities of the
Fund, maintain or arrange for the maintenance of the documents and records
required pursuant to Rule 31a-1 under the 1940 Act, as well as trade tickets and
confirmations of portfolio trades, and such other records as the Adviser
reasonably requests to be maintained. All such records shall be maintained in a
form reasonably acceptable to the Adviser and the Trust and in compliance with
the provisions of Rule 31a-1 or any successor rule. All such records will be the
property of the Trust, and will be made available for inspection by the Trust
and its authorized representatives (including the Adviser). The Sub-Adviser
shall promptly, upon the Trust's request, surrender to the Trust those records
that are the property of the Trust or the Fund; provided, however, that the
Sub-Adviser may retain copies of such records.
SECTION 13. TERM AND APPROVAL. This Agreement shall become effective
with respect to a Fund after it is approved in accordance with the express
requirements of the 1940 Act, and executed by the Trust, Adviser and Sub-Adviser
and shall thereafter continue from year to year, provided that the continuation
of the Agreement is approved in accordance with the requirements of the 1940
Act, which currently requires that the continuation be approved at least
annually:
(a) (i) by the Trust's Board of Trustees or (ii) by the vote of "a
majority of the outstanding voting securities" of the Fund (as
defined in Section 2(a)(42) of the 1940 Act, and
(b) by the affirmative vote of a majority of the Trust's Trustees who
are not parties to this Agreement or "interested persons" (as
defined in the 0000 Xxx) of a party to this Agreement (other than
as Trustees of the Trust), by votes cast in person at a meeting
specifically called for such purpose.
SECTION 14. TERMINATION. This Agreement may be terminated with respect
to each Fund at any time, without the payment of any penalty, by vote of the
Board or by vote of a majority of the Fund's outstanding voting securities, or
by the Adviser or Sub-Adviser upon sixty (60) days' written notice to the other
party. The notice provided for herein may be waived by the party entitled to
receipt thereof. This Agreement shall automatically terminate in the event of
its assignment, the term "assignment" for purposes of this paragraph having the
meaning defined in Section 2(a)(4) of the 1940 Act, as it may be interpreted by
the Commission or its staff in interpretive releases, or applied by the
Commission staff in no-action letters, issued under the 1940 Act.
This Agreement may also be terminated immediately by the Adviser, the
Sub-Adviser or the Trust in the event that a respective party: (i) breaches a
material term of this Agreement; or (ii) commits a material violation of any
governing law or regulation; or (iii) engages in conduct that
7
would have a material adverse effect upon the reputation or business prospects
of a respective party.
SECTION 15. INDEMNIFICATION BY THE SUB-ADVISER. In the absence of
willful misfeasance, bad faith, gross negligence or reckless disregard of
obligations or duties hereunder on the part of the Trust or the Adviser, or any
of their respective officers, directors, employees, affiliates or agents, the
Trust and the Adviser, respectively, shall not be responsible for, and the
Sub-Adviser hereby agrees to indemnify and hold harmless the Trust and the
Adviser and their respective officers, directors, employees, affiliates and
agents (severally, but not jointly) against any and all losses, damages, costs,
charges, reasonable counsel fees, payments, expenses, liability, claims,
actions, suits or proceedings at law or in equity whether brought by a private
party or a governmental department, commission, board, bureau, agency or
instrumentality of any kind, arising out of or attributable to the willful
misfeasance, bad faith, grossly negligent acts or reckless disregard of
obligations or duties hereunder on the part of the Sub-Adviser or any of its
officers, directors, employees affiliates or agents. Notwithstanding the
foregoing, the Sub-Adviser shall not be liable hereunder for any losses or
damages resulting from the Sub-Adviser's adherence to the Adviser's written
instructions, or for any action or inaction by the Sub-Adviser consistent with
the Standard of Care described in Section 10 of this Agreement.
SECTION 16. INDEMNIFICATION BY THE TRUST AND THE ADVISER. Provided that
the conduct of the Sub-Adviser, its partners, employees, affiliates and agents
is consistent with the Standard of Care described in Section 10 of this
Agreement, the Sub-Adviser shall not be responsible for, and the Trust and the
Adviser (severally, but not jointly) hereby agree to indemnify and hold harmless
the Sub-Adviser, its partners, employees, affiliates and agents against any and
all losses, damages, costs, charges, reasonable counsel fees, payments,
expenses, liability, claims, actions, suits or proceedings at law or in equity
whether brought by a private party or a governmental department, commission,
board, bureau, agency or instrumentality of any kind, arising out of or
attributable to conduct of the party from whom such indemnification is sought
and relating to: (i) the advertising, solicitation, sale, purchase or pledge of
securities, whether of the Fund or other securities, undertaken by the Fund, its
officers, directors, employees, affiliates or agents, (ii) any violations of the
securities laws, rules, regulations, statutes and codes, whether federal or of
any state, by the Fund or the Adviser, respectively, or their respective
officers, directors, employees, affiliates or agents, or (iii) the willful
misfeasance, bad faith, grossly negligent acts or reckless disregard of
obligations or duties hereunder on the part of the Fund or the Adviser,
respectively, or their respective officers, directors, employees, affiliates or
agents.
SECTION 17. NOTICES. Any notices under this Agreement shall be in
writing, addressed and delivered or mailed postage paid to the other party at
such address as such other party may designate for the receipt of such notice.
Until further notice to the other party, it is agreed that the address of the
Trust shall be 000 Xxxxxx Xxxxxx, 00xx Xxxxx, Xxx Xxxxxxxxx, Xxxxxxxxxx 00000,
Attention: Xxxxx X. Xxxxxxx, and that of the Adviser shall be 000 Xxxxxx Xxxxxx,
00xx Xxxxx, Xxx Xxxxxxxxx, Xxxxxxxxxx 00000, Attention: C. Xxxxx Xxxxxxx, and
that of the Sub-Adviser shall be 0000 Xxxxxxxxx Xxxx, Xxxxx 000, Xxxxxxx, XX
00000, Attention: Xxxxx X. Xxxxxx.
SECTION 18. QUESTIONS OF INTERPRETATION. Any question of interpretation
of any term or provision of this Agreement having a counterpart in or otherwise
derived from a term or
8
provision of the 1940 Act shall be resolved by reference to such terms or
provision of the 1940 Act and to interpretations thereof, if any, by the United
States Courts or in the absence of any controlling decision of any such court,
by rules, regulations or orders of the Commission, or interpretations of the
Commission or its staff, or Commission staff no-action letters, issued pursuant
to the 1940 Act. In addition, where the effect of a requirement of the 1940 Act
or the Advisers Act reflected in any provision of this Agreement is revised by
rule, regulation or order of the Commission, such provision shall be deemed to
incorporate the effect of such rule, regulation or order. The duties and
obligations of the parties under this Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware to the extent
that state law is not preempted by the provisions of any law of the United
States heretofore or hereafter enacted.
SECTION 19. AMENDMENT. No provision of this Agreement may be changed,
waived, discharged or terminated orally, but only by an instrument in writing
signed by the party against which enforcement of the change, waiver, discharge
or termination is sought. If shareholder approval of an amendment is required
under the 1940 Act, no such amendment shall become effective until approved by a
vote of the majority of the outstanding shares of the Fund. Otherwise, a written
amendment of this Agreement is effective upon the approval of the Board, the
Adviser and the Sub-Adviser.
SECTION 20. XXXXX FARGO NAME. The Sub-Adviser and the Trust each agree
that the name "Xxxxx Fargo," which comprises a component of the Trust's name, is
a property right of the parent of the Adviser. The Trust agrees and consents
that: (i) it will use the words "Xxxxx Fargo" as a component of its corporate
name, the name of any series or class, or all of the above, and for no other
purpose; (ii) it will not grant to any third party the right to use the name
"Xxxxx Fargo" for any purpose; (iii) the Adviser or any corporate affiliate of
the Adviser may use or grant to others the right to use the words "Xxxxx Fargo,"
or any combination or abbreviation thereof, as all or a portion of a corporate
or business name or for any commercial purpose, other than a grant of such right
to another registered investment company not advised by the Adviser or one of
its affiliates; and (iv) in the event that the Adviser or an affiliate thereof
is no longer acting as investment adviser to the Fund, the Trust shall, upon
request by the Adviser, promptly take such action as may be necessary to change
its corporate name to one not containing the words "Xxxxx Fargo" and following
such change, shall not use the words "Xxxxx Fargo," or any combination thereof,
as a part of its corporate name or for any other commercial purpose, and shall
use its best efforts to cause its trustees, officers and shareholders to take
any and all actions that the Adviser may request to effect the foregoing and to
reconvey to the Adviser any and all rights to such words. The Sub-Adviser may
include the Xxxxx Fargo Funds in its representative client list.
SECTION 21. RISK ACKNOWLEDGEMENT. The Sub-Adviser does not guarantee
the future performance of the Funds, the success of any investment decision or
strategy that the Sub-Adviser may use, or the success of the Sub-Adviser's
overall management of the Funds. Each of the Trust and the Adviser understand
that investment decisions made for the Funds by the Sub-Adviser are subject to
various market, currency, economic and business risks, and that those investment
decisions will not always be profitable. The Sub-Adviser will only be
responsible for providing the advisory services specified in Section 2(a) above.
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SECTION 22. AUTHORITY TO EXECUTE AGREEMENT. Each of the individuals
whose signature appears below represents and warrants that he or she has full
authority to execute this Agreement on behalf of the party on whose behalf he or
she has affixed his or her signature to this Agreement. The Trust and the
Adviser will deliver to the Sub-Adviser such evidence of its authority with
respect to this Agreement as Sub-Adviser may reasonably require. The Sub-Adviser
will deliver to the Trust and the Adviser such evidence of its authority with
respect to this Agreement as the Trust or the Adviser may reasonably require.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in triplicate by their respective officers on the day and year first
written above.
XXXXX FARGO FUNDS TRUST
on behalf of the Fund
By: ______________________________________________
C. Xxxxx Xxxxxxx
Secretary
XXXXX FARGO FUNDS MANAGEMENT, LLC
By: ______________________________________________
Xxxxxx Xxxx
Senior Vice President
GLOBAL INDEX ADVISORS, INC.
By: ______________________________________________
Xxxxxx X. Xxxxxxx, Xx
Chairman & Chief Executive Officer
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APPENDIX A
GLOBAL INDEX ADVISORS SUB-ADVISORY AGREEMENT
XXXXX FARGO FUNDS TRUST
--------------------------------------------------------------------------------
FUNDS TRUST FUNDS
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Xxxxx Fargo Advantage Dow Xxxxx Target 2050 Fund(1)
Xxxxx Fargo Advantage Dow Xxxxx Target 2045 Fund(2)
Xxxxx Fargo Advantage Dow Xxxxx Target 2040 Fund
Xxxxx Fargo Advantage Dow Xxxxx Target 2035 Fund(2)
Xxxxx Fargo Advantage Dow Xxxxx Target 2030 Fund
Xxxxx Fargo Advantage Dow Xxxxx Target 2025 Fund(2)
Xxxxx Fargo Advantage Dow Xxxxx Target 2020 Fund
Xxxxx Fargo Advantage Dow Xxxxx Target 2015 Fund(2)
Xxxxx Fargo Advantage Dow Xxxxx Target 2010 Fund
Xxxxx Fargo Advantage Dow Xxxxx Target Today Fund
--------------------------------------------------------------------------------
Approved by the Board of Trustees: March 31, 2006
Appendix A amended: February 7, 2007
___________________________________
(1) On November 8, 2006 the Board of Trustees approved the establishment of the
Target 2050 Fund, which is expected to commence operations on or about July 1,
2007.
(2) On February 7, 2007 the Board of Trustees approved the establishment of the
Target 2015, Target 2025, Target 2035 and Target 2045 Funds, which are expected
to commence operations on or about July 1, 2007.
00
XXXXXXXX X
GLOBAL INDEX ADVISORS SUB-ADVISORY AGREEMENT
FEE AGREEMENT
XXXXX FARGO FUNDS TRUST
This fee agreement is effective as of the 26th day of June, 2006, by
and between Xxxxx Fargo Funds Trust (the "Trust"), Xxxxx Fargo Funds Management,
LLC (the "Adviser") and Global Index Advisors, Inc. (the "Sub-Adviser").
WHEREAS, the parties have entered into an Investment Sub-Advisory
Agreement ("Sub-Advisory Agreement") whereby the Sub-Adviser provides management
and other services to each series of the Trust listed in Appendix A to the
Sub-Advisory Agreement (each a "Fund" and collectively the "Funds"); and
WHEREAS, the Sub-Advisory Agreement provides that the fees to be paid
to the Sub-Adviser are to be as indicated on this Appendix B;
NOW THEREFORE, the parties agree that the fees to be paid to the
Sub-Adviser under the Sub-Advisory Agreement shall be calculated and paid on a
monthly basis by applying the annual rates indicated below to the average daily
net assets of each Fund throughout the month:
--------------------------------------------------------------------------------
NAME OF FUND SUB-ADVISORY RATE
--------------------------------------------------------------------------------
Xxxxx Fargo Advantage Dow Xxxxx Target 2050 Fund(3) 0.06%
Xxxxx Fargo Advantage Dow Xxxxx Target 2045 Fund(4) 0.06%
Xxxxx Fargo Advantage Dow Xxxxx Target 2040 Fund 0.06%
Xxxxx Fargo Advantage Dow Xxxxx Target 2035 Fund(4) 0.06%
Xxxxx Fargo Advantage Dow Xxxxx Target 2030 Fund 0.06%
Xxxxx Fargo Advantage Dow Xxxxx Target 2025 Fund(4) 0.06%
Xxxxx Fargo Advantage Dow Xxxxx Target 2020 Fund 0.06%
Xxxxx Fargo Advantage Dow Xxxxx Target 2015 Fund(4) 0.06%
Xxxxx Fargo Advantage Dow Xxxxx Target 2010 Fund 0.06%
Xxxxx Fargo Advantage Dow Xxxxx Target Today Fund 0.06%
--------------------------------------------------------------------------------
If the Sub-Adviser shall provide management and other services for less
than the whole of a month, the foregoing compensation shall be prorated based on
the number of days in the month that such Sub-Adviser provided management and
other services to the Fund.
___________________________________
(3) On November 8, 2006 the Board of Trustees approved the establishment of the
Target 2050 Fund, which is expected to commence operations on or about July 1,
2007.
(4) On February 7, 2007 the Board of Trustees approved the establishment of the
Target 2015, Target 2025, Target 2035 and Target 2045 Funds, which are expected
to commence operations on or about July 1, 2007.
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The foregoing fee schedule is agreed to as of this 7th day of February,
2007, and shall remain in effect until changed in writing by the parties.
XXXXX FARGO FUNDS TRUST
on behalf of the Fund
By: ______________________________________________
C. Xxxxx Xxxxxxx
Secretary
XXXXX FARGO FUNDS MANAGEMENT, LLC
By: ______________________________________________
Xxxxxx Xxxx
Executive Vice President
GLOBAL INDEX ADVISORS, INC.
By: ______________________________________________
Xxxxxx X. Xxxxxxx, Xx
Chairman & Chief Executive Officer
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