FEE REDUCTION AGREEMENT COMMONWEALTH INTERNATIONAL SERIES TRUST
FEE REDUCTION AGREEMENT
COMMONWEALTH
INTERNATIONAL SERIES TRUST
THIS AGREEMENT (“Agreement”), is dated this 20th day of February 2015, and shall be effective on March 1, 2015, is made by and between FCA Corp (the “Adviser”) and Commonwealth International Series Trust (the “Trust”), on behalf its series portfolio, the Commonwealth Japan Fund (the “Fund”).
WHEREAS, the Trust is a Massachusetts business trust organized under an Amended and Restated Declaration of Trust (“Declaration of Trust”) and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end managed investment company of the series type, and the Fund is a series of the Trust; and
WHEREAS, the Trust and the Adviser have entered into an Investment Advisory Agreement (“Advisory Agreement”), pursuant to which the Adviser provides investment advisory services to the Fund for compensation based on the value of the average daily net assets of the Fund (the “Advisory Fee”); and
WHEREAS, the Trust and the Adviser have determined that it is appropriate and in the best interests of the Fund and its shareholders for the Adviser to reduce its Advisory Fee, as described more fully below; and
WHEREAS, the Trust and the Adviser have determined that the reduction in Advisory Fee may benefit the Fund in terms of lower expenses and may benefit the Adviser as it may allow the Fund to be more marketable and attractive to potential shareholders, thus increasing the overall asset base of the Fund; and
NOW, THEREFORE, in consideration of the mutual covenants herein contained, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
1. |
FEE REDUCTION. The Adviser shall reduce its Advisory Fee in whole for the entire
term of this Agreement. The Adviser will not seek recoupment for fees waived. |
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2. |
TERM AND TERMINATION OF AGREEMENT. This Agreement shall remain in effect until February
29, 2016. Thereafter, unless otherwise terminated as provided herein, this Agreement
may be renewed for successive one-year periods, subject to the approval and/or ratification
by the Board of Trustees. This Agreement shall terminate automatically upon the
termination of the Advisory Agreement or by one party providing advance notice to
the other party of its intention not to renew the Agreement. |
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3. | MISCELLANEOUS. | ||||
a. | 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. |
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b. | Interpretation.
Nothing herein contained shall be deemed to require the Trust or the Fund to take
any action contrary to the Trust’s Declaration of Trust or bylaws, 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 Fund. |
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c. | Definitions. Any question of interpretation of any term or provision of this Agreement, |
including but not limited to the investment advisory fee, 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 1940 Act. |
IN WITNESS WHEREOF, the parties have caused this Agreement to be signed by their respective officers thereunto duly authorized and their respective corporate seals to be hereunto affixed, as of the day and year first above written.
COMMONWEALTH INTERNATIONAL SERIES TRUST | |||||
/s/ Xxxx Xxxxx | |||||
__________________________________________ Xxxx Xxxxx, Chairman |
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FCA CORP. | |||||
/s/ Xxxxxx X. Xxxxxxx | |||||
_______________________________ Xxxxxx X. Xxxxxxx, President |