Amendment
Exhibit (d)(9)(d)
Amendment
Amendment, effective April 2, 2007 to that certain Portfolio Management Agreement (“2000
Agreement”) between Capital Guardian Trust Company (“Portfolio Manager”) and The Xxxxxx Xxxxxxxxx
Trust (“Trust”), a Delaware business trust, which agreement is dated July 26, 2000.
WHEREAS, the Trust has retained the Portfolio Manager to provide a continuous program of investment
management for certain assets of The International Equity Portfolio of the Trust (“Account”)
pursuant to the 2000 Agreement; and
WHEREAS, the Trust and Portfolio Manager have agreed to reduce the fee payable to Portfolio Manager
under the 2000 Agreement;
NOW THEREFORE, in consideration of the promises and covenants set forth herein and intending to be
legally bound hereby, the parties agree that “Schedule A” of the 2000 Agreement is hereby deleted
and replaced with the following:
Schedule A to CapGuardian Portfolio Management Agreement: Compensation
Performance Based Compensation. The parties acknowledge and agree that the
Trust has retained the Portfolio Manager to provide a continuous program of investment
management for a portion of the assets of The International Equity Portfolio of the
Trust (“Cap Guardian Account”) pursuant to the Agreement and that the Trust desires to
compensate the Portfolio Manager for its services based, in part, on the performance
achieved by the Portfolio Manager for the Account, in accordance with the fee
arrangement set forth below.
Quarterly Periods. For each quarter, Portfolio Manager will receive a
quarterly fee of 8.75 basis points plus or minus 25% of the Performance Component
multiplied by the average net assets of the Cap Guardian Account for the immediately
preceding 12 month period, on a “rolling basis.” This means that, at each quarterly
fee calculation, the Gross Total Return of the Cap Guardian Account, the Index Return
and the average net assets of the Cap Guardian Account for the most recent quarter
will be substituted for the corresponding values of the earliest quarter included in
the prior fee calculation. The Performance Component shall be calculated by (a)
computing the difference between (i) the total return of the Cap Guardian Account
without regard to expenses incurred in the operation of the Cap Guardian Account
(“Gross Total Return”) and (ii) the return of the EAFE Index (“Index Return”) during
the Initial Period plus 35 basis points; and (b) multiplying the resulting factor by
12.5%.
Amendment to July 26, 2000 Portfolio Management Agreement
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Maximum Performance Adjusted Fee. Notwithstanding the formula set forth
above, the maximum fee to which Portfolio Manager shall be entitled with respect to
any 12 month period shall be .60% of the average net assets of the Cap Guardian
Account (or 60 basis points). The maximum fee to which Portfolio Manager shall be
entitled with respect to any quarter (other than the fourth quarter of the Initial
Period) shall be .15% of the average net assets of the Cap Guardian Account (or 15
basis points). Due to the performance hurdle noted above, this maximum fee level would
be attained only to the extent that the Cap Guardian Account outperforms the Index by
a factor of at least 235 basis points.
Minimum Contractual Fee. The minimum fee payable to Portfolio Manager for
any twelve month period shall be .10% of the average net assets of the CapGuardian
Account or 10 basis points. This minimum fee would obtain, however, only in the event
that the Cap Guardian Account underperforms the EAFE Index by a factor of at least 165
basis points.
Suspension of Performance Based Compensation. The parties acknowledge and
agreement that the performance adjustments contemplated above will be suspended after
such date, if any, on which Portfolio Manager (or the separately identified division
of Portfolio Manager’s that provides the services contemplated under this Agreement)
is required to be registered under the Investment Advisers Act of 1940 and is subject
to Section 205 thereof, unless and until Portfolio Manager (or such division) obtains
an order (“Exemptive order”) or other relief appropriate relief from the Securities
and Exchange Commission permitting Portfolio Manager to receive performance fee
adjustments calculated in the manner contemplated by this fulcrum fee arrangement. In
the event that performance adjustments are suspended, Portfolio Manager will receive
an annual fee, calculated daily and payable quarterly, of .35% of the assets in the
Account, until such time as the Exemptive Order or other relief is obtained.
Expenses; Effectiveness. Portfolio Manager shall pay all expenses incurred by
it in the performance of its duties under the Agreement and shall not be required to
pay any other expenses of the Trust, including but not limited to brokerage and
transactions costs incurred by the Trust. In the event of termination of this
Agreement, all compensation due to the Portfolio Manager through the date of
termination will be calculated on a pro-rated basis through the date of termination
and paid within fifteen business days of the date of termination.
Amendment to July 26, 2000 Portfolio Management Agreement
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IN WTNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
officers thereunto duly authorized as of the day and year first written above.
Capital Guardian Trust Company
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The Xxxxxx Xxxxxxxxx Trust | |
By:
/s/ Xxxxxxx X. Xxxx
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By: /s/ Xxxxxx Xxxx | |
Name: Xxxxxxx X. Xxxx
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Name: Xxxxxx X. Xxxx | |
Title: Senior Vice President
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Title: VP & Treasurer |