Exhibit 3
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INVESTMENT ADVISORY AGREEMENT
THIS INVESTMENT ADVISORY AGREEMENT ("Agreement"), made as of the 7th
day of May, 1997, by and between NETWORK IV LLC, a Cayman Islands exempted
company (the "Fund"), and XXXXXX MANAGEMENT COMPANY, a Delaware, U.S.A.
corporation (the "Investment Advisor"):
W I T N E S S E T H:
WHEREAS, the investment objective of the Fund is to provide investors
with superior returns substantially exceeding those generally available in the
financial markets by opportunistic investing in event-driven special situations,
all as more fully described in the Fund's Confidential Private Placement
Memorandum dated October 31, 1996 attached hereto as Exhibit A (said
Confidential Private Placement Memorandum as further amended and supplemented
from time to time by the Fund, including further amendments, supplements
(including but not limited to the Supplement dated February 26, 1997), and
additional private placement memoranda necessary to offer and sell Shares at any
time and from time to time, shall hereinafter be referred to as the
"Memorandum");
WHEREAS, the Fund has sold and intends to sell redeemable voting shares
of the Fund (the "Shares") in an offering described in the Memorandum;
WHEREAS, the Fund desires the Investment Advisor, upon the terms and
conditions set forth herein, to act as Investment Advisor for the Fund and to
make investment decisions for the Fund with respect to the fund's assets and the
Investment Advisor desires so to act;
WHEREAS, the Investment Advisor is engaged in the business of making
investment decisions on behalf of investors; and
WHEREAS, unless otherwise provided, capitalized terms used herein shall
have the same meanings given such terms in the Memorandum.
NOW, THEREFORE, the parties hereto do hereby agree as follows:
1. Undertakings of the Investment Advisor
(a) The Investment Advisor agrees to make to the Fund all
disclosures necessary regarding the Investment Advisor and its affiliates.
(b) If the Investment Advisor shall become aware of any
materially untrue or misleading statement of a fact or any omission of a
material fact contained in the Memorandum regarding the Investment Advisor or
its affiliates or of the occurrence of any event or change in circumstances
which shall have resulted in there being any such materially untrue or
misleading statement of a material fact or any such omission of a material fact,
the Investment Advisor promptly shall inform the Fund and cooperate with the
Fund in the preparation of any necessary amendments or supplements to the
Memorandum.
(c) During the term of this Agreement, the Investment Advisor
and its affiliates shall be free to advise other investors as to the purchase
and sale of securities, to manage and invest other investors' accounts, and to
invest for and on behalf of their own proprietary accounts. Although the
Investment Advisor and its affiliates manage investments on behalf of a number
of other customer
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accounts, investment decisions and allocations need not necessarily be made in
parallel among the Fund's account and the other customer accounts. Investments
made by the Fund need not, and are not intended to, necessarily replicate the
investments, or the investment methods and strategies of other accounts managed
by the Investment Advisor and its affiliates. The Investment Advisor and its
affiliates at times and from time to time may elect to apportion major or minor
portions of the investments made by the Fund among other accounts managed by the
Investment Advisor and its affiliates; however, that apportionment will not
necessarily be made in parallel and will not necessarily be based on the capital
in each account. Rather, such investments will be allocated among accounts based
on the Investment Advisor's perception of the appropriate risk and reward ratio
for each account, the investment methodology adopted for each account, the
liquidity of the account at the time of the investment and on a going-forward
basis, and the overall portfolio composition and performance of the account.
Accordingly, the Fund acknowledges that the other accounts managed by the
Investment Advisor and its affiliates may produce results that are materially
different form those experienced by the Fund. In addition, the Fund understands
and agrees that other accounts managed by the Investment Advisor and its
affiliates may be competing for the same positions as the Fund, to the possible
disadvantage of the Fund.
2. Duties of the Investment Advisor. The Investment Advisor shall act
as Investment Advisor for the Fund. The Investment Advisor shall have sole and
exclusive authority and responsibility for directing the investment and
reinvestment of the Fund's Net Assets pursuant to and in accordance with the
Investment Advisor's best judgment and methodologies, and as refined and
modified from time to time in the future by the Investment Advisor, for the
period and on the terms and conditions set forth herein. The investment services
provided by the Investment Advisor will include, but not be limited to:
evaluating potential investments; analyzing and evaluating the capabilities of
the management and business plans of potential portfolio companies; negotiating
terms, conditions, and price levels of each investment; making sales and placing
orders with brokers and dealers to execute portfolio transactions on behalf of
the Fund. In assessing the risks and potential returns on investment
opportunities, the Investment Advisor may seek advice and assistance from other
investment groups and draw upon the expertise and experience of business
associates, brokerage firms' research departments, independent research
authorities, clients and investors.
3. Investment Advisor Independent. For all purposes of this Agreement,
the Investment Advisor shall be deemed to be an independent contractor of the
Fund, the Investment Advisor shall have no authority to act for or represent the
Fund, its affiliates, officers, directors or employees in any way and shall not
otherwise be deemed to be an agent of the Fund. Except as shall be specifically
provided otherwise in this Agreement, nothing contained herein shall create or
constitute the Investment Advisor or the Fund as members of any partnership,
joint venture, association, syndicate, unincorporated business, or other
separate entity, nor shall be deemed to confer on either of them any express,
implied, or apparent authority to incur any obligation or liability on behalf of
any other.
4. Fees
(a) Performance Fee. The Investment Advisor will receive a
performance fee equal to 20% of Net Profit per Share, if any, calculated at each
calendar year-end (or on a Redemption Date if prior to a calendar year-end), but
only if Net Profit exceeds a non-compounded annual preferred return of 7% (the
"Preferred Return"); Net Profit between 7% and 8.75% will be paid to the
Investment Advisor (so that the Investment Advisor will receive 20% of the first
8.75% per annum of Net Profit). The Preferred Return will be pro-rated for
partial years through each December 31st, but will not be applicable to Shares
redeemed by a Shareholder prior to a December 31st--that is, the Preferred
Return will apply only to Shares that have not been redeemed by a Shareholder
during a calendar year on a March 31st, June 30th or September 30th (or any date
other than December 31st). Net Profit includes both realized and unrealized
gains.
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Net Profit (and Net Loss) is the sum of (i) the net of any profits and
losses realized on all investments closed out during the fiscal period plus (ii)
the net of any unrealized profits and losses on any open positions as of the end
of such fiscal period (after deduction for accrued brokerage commissions and
other transaction costs) plus (iii) interest and dividend income, minus (iv) the
net of any unrealized profits or losses on open positions as of the end of the
preceding fiscal period. Profits and losses are calculated by reference to
market value, determined pursuant to the conventions described below in Section
4(d).
There is Net Profit only if and to the extent there is no Loss
Carryforward. The Loss Carryforward is the sum of (i) any cumulative Net Loss
from fiscal periods ending prior to the fiscal period of calculation plus (ii)
the non-compounded Preferred Return from such prior fiscal periods minus (iii)
any cumulative Net Profit for such prior fiscal periods.
(b) Management Fee. For the services to be rendered to the Fund by the
Investment Advisor under this Agreement, in addition to the performance fee
provided in subsection (a) above, the Fund shall pay the Investment Advisor a
management fee equal to 0.4375% (approximately 1.75% annualized) of the Net
Assets of the Fund as of the end of such quarter. The management fee with
respect to any Share for any quarter in which such Share has not been
outstanding for the entire quarter shall be pro-rated on the basis of the number
of whole or partial months the Share has been outstanding during such quarter.
For purposes of calculating quarterly management fees, Net Asserts are
not reduced by any management or performance fees payable or incurred by the
Fund during such quarter, any distributions paid during the quarter, or any
redemptions payable at quarter-end.
(c) Other Compensation to the Investment Advisor. The Investment
Advisor and its principals and affiliates will be entitled to receive and retain
from third parties or portfolio companies any investment banking fees or
transaction-related fees, arising from investments made by the Fund, as well as
fees for serving on boards of directors of portfolio companies in which the
Funds are invested.
(d) "Net Assets" and Valuation of Securities. The Net Assets of the
Fund are the total assets of the Fund, including all cash and cash equivalents
(valued at cost), accrued interest, and the market value of all securities and
all other assets of the Fund, less all other liabilities of the Fund, including,
but not limited to, accrued legal, accounting, and auditing fees, accrued
management and performance fees, and any extraordinary expenses, determined in
accordance with U.S. generally accepted accounting principles applied under the
accrual basis of accounting by the Directors of the Fund in their sole
discretion.
For purposes of determining the value of securities and other interests
owned by the Fund, the following conventions shall apply:
The market value of a security traded on an exchange shall be its
closing price or, if applicable, the mean of its closing bid and asked prices on
the date of determination. If the exchange on which a security is required to be
valued is closed, or if a security did not trade on such exchange on the date of
determination, such security shall be valued as if the date of determination
were the last previous date on which such exchange was open, or on which such
security traded on such exchange. For this purpose, an "exchange" shall mean the
exchange on which the security was traded in the greatest volume in the calendar
quarter prior to the date of determination and shall include normal securities
trading markets which do not meet the formal requirements for exchanges,
including, for example, the quotation system of the National Association of
Securities Dealers, Inc. ("NASD") customarily known as NASDAQ. Unlisted
securities and securities which the Directors believe to be not readily
marketable will be valued initially at cost and thereafter with any reduction or
increase in value (as the case may be) as the Directors in their absolute
discretion shall deem to result in an appropriate estimation of fair value. The
Directors may rely in this regard on the opinion of an independent source or
sources or on the Investment
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Advisor. Notwithstanding anything to the contrary stated above, if the Directors
determine that the valuation of any security or other property does not fully
represent market value (whether because of illiquidity or otherwise), the
Directors shall value such security or other property as they reasonably
determine and shall set forth the basis of such valuation in writing in the
Fund's records.
(e) Time for Payment of Fees. Any performance fees payable to the
Investment Advisor in accordance with this Agreement shall be paid by the Fund
to the Investment Advisor within 30 days after the end of each calendar year,
and any management fee payable to the Investment Advisor in accordance with this
Agreement shall be paid by the Fund to the Investment Advisor within 10 days
after the end of each calendar quarter; provided, however, that the Investment
Advisor may elect pursuant to the provisions of Section 4(f) below to defer the
payment of all or any portion of the management and/or performance fees and have
such management and performance fees paid to a trust (or other account agreed to
by the Fund and the Investment Advisor) to be organized by the Fund for the
benefit of the Investment Advisor pursuant to such terms and conditions as the
fund and the Investment Advisor shall agree (the "Trust"). In the latter event,
the Fund shall transfer such deferred management and/or performance fees, if
any, at the times described in the immediately preceding sentence to the Trust
pursuant to the terms of a Trust Agreement, a copy of which will be appended to
this Agreement. In the case of termination of the Investment Advisor under this
Agreement, the performance and management fees shall be computed as if the
effective date of termination were the last day of the then current year and
quarter, respectively. The terms of the Trust shall at all times conform to the
terms of the model trust contained in Revenue Procedure 92-64 or any subsequent
pronouncement by the United States Internal Revenue Service containing required
terms for an unfunded deferred compensation arrangement.
(f) Periodic Election. The Investment Advisor may elect
pursuant to the provisions of this Agreement to defer the payment of all or a
portion of the management and/or performance fees for a particular fiscal period
and pay such management and/or performance fee to the Trust. The management
and/or performance fees for such fiscal period shall be payable only as provided
herein. Separate elections may be made with respect to each fiscal period;
provided, however, that in the absence of a new election with respect to a
fiscal period, the election for the most recent prior fiscal period shall apply.
An election to defer the payment of all or a portion of the management and/or
performance fees for a particular fiscal period and to pay such management
and/or performance fees to the Trust shall be made on or before the first day of
such fiscal period by a written notice sent by the Investment Advisor to the
Fund. Each notice delivered pursuant to this subsection 4(d) shall state:
(i) the amount or percentage of the management
and/or performance fees to be paid to the Investment Advisor pursuant to
subsection 4(e) hereof, and the amount or percentage of the management and/or
performance fees to be deferred and paid to the Trust;
(ii) the distribution date(s); and
(iii) the amount or percentage of such fees
(inclusive or exclusive of profit and loss thereon) to be distributed by the
Trust to the Investment Advisor on each distribution date.
(g) Computation of Performance Fees. Promptly after receipt by
the Fund of monthly statements from the Fund's broker(s), the Fund shall forward
to the Investment Advisor a reasonably itemized statement setting forth the
calculation of the amount of the performance fees due or accrued to the
Investment Advisor in respect of such month.
(h) Soft Dollar Arrangements. the Fund acknowledges that he
Investment Advisor may obtain goods or services by directing commission business
to broker-dealers which provide the Investment Advisor with such goods or
services.
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(i) Reduction of Fees Based on Settling Arrangements. The fees
payable to the Investment Advisor pursuant to this section 4 shall be reduced
pursuant to the provisions of this Section 4(i) to the extent that Net Assets
are derived from investors who purchase Shares pursuant to selling arrangements
with selling agents ("Selling Agents") contractually retained by the Fund which
provide bona fide sales efforts to the Fund and which Selling Agents and Selling
Agent arrangements are agreed to by the Investment Advisor.
5. Policies of the Fund. The activities engaged in by the Investment
Advisor on behalf of the Fund shall be subject to the policies and control of
the Directors of the Fund.
The Investment Advisor shall submit such periodic reports to the
Directors of the Fund regarding the Investment Advisor's activities hereunder as
the Director of the Fund may reasonably request.
6. Investments. All investments of the Fund shall at all times conform
to and be in accordance with the requirements imposed by:
(a) any provisions of applicable law;
(b) provisions of the Memorandum and Articles of the Fund, as
such Memorandum and Articles may be amended, supplemented or revised from time
to time;
(c) the policies set forth in the Memorandum; and
(d) such policies as may be adopted from time to time by the
Directors of the Fund.
7. Reimbursement of the Fund. The Investment Advisor may retain, in
connection with its responsibilities hereunder, the services of others to assist
in the investment advice to be given to the Fund, but payment for any such
services shall be assumed by the Investment Advisor and the Fund shall not have
any liability therefor; provided, however, that the Investment Advisor may in
its discretion retain the services of legal counsel to advise it in connection
with the performance of its activities on behalf of the Fund hereunder and the
Fund shall bear full responsibility for and the expense of any legal fees and
disbursements arising therefrom.
8. Expenses of the Fund. The Fund shall bear full responsibility for
and the expenses of:
(a) directors' and officers' fees and salaries;
(b) custodian fees;
(c) payment of taxes other than those incurred in connection
with facilities and services rendered by the Investment Advisor at the
Investment Advisor's expense;
(d) the Fund's legal fees and disbursements;
(e) maintenance of its corporate records and books of account,
including auditing fees and disbursements;
(f) organization and conduct of its directors' and
shareholders' meetings and the preparation and distribution of all of its
shareholders' reports and other communications with shareholders;
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(g) the calculation of the net asset value of its shares by
its accountants, in a manner determined by its Board of Directors and the
publication thereof;
(h) soliciting sales and acceptance of subscriptions for its
shares;
(i) issuing, transferring and redeeming its shares and
of paying dividends or making other distributions thereon;
(j) brokerage commissions on its purchases and sales of
securities;
(k) its communications with the public; and
(1) other operations and expenses related to the investment of
the Fund's assets and which are not related to functions assumed by the
Investment Advisor hereunder.
9. Expenses of the Investment Advisor. Except to the extent otherwise
provided in this Agreement, the Investment Advisor will perform its obligations
under this Agreement at its own expense, including, without limitation, the
salaries of employees necessary for such services, the rent and utilities for
the facilities provided and operating expenses, except as assumed by the Fund
under this Agreement.
10. Term and Termination
(a) Term and Renewal. This Agreement shall continue in effect
until December 31, 1999. Thereafter, this Agreement shall be renewed
automatically for additional one-year terms unless either the Fund or the
Investment Advisor, upon written notice given not less than 90 days prior to the
original termination date or any extended termination date, shall notify the
other party of its intention not to renew.
(b) Termination. Notwithstanding Section 10(a) hereof, this
Agreement shall terminate:
(i) immediately if the Fund shall terminate and be
dissolved in accordance with its Memorandum of Association or Articles of
Association or otherwise; or
(ii) immediately if the Investment Advisor can no
longer effectively implement its investment strategy on behalf of the Fund; or
(iii) immediately, at the discretion of the Fund, if
the Investment Advisor shall become bankrupt or insolvent; or
(iv) upon not less than thirty (30) days' prior
written notice, at the discretion of the Fund, if the Investment Advisor shall
fail to perform any of its obligations under this Agreement; or
(v) upon not less than thirty (30) days' prior
written notice, at the discretion of the Investment Advisor, if the Fund shall
fail to perform any of its obligations under this Agreement.
(c) Fee Payments and Indemnities Survive Termination. The fee
payment obligations set forth in Section 4, and the indemnities set forth in
Section 11, of this Agreement shall survive any termination hereof.
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11. Standard of Liability and Indemnity
(a) Standard of Liability. The Investment Advisor and its
employees, affiliates, agents, and their respective successors and assigns shall
not be liable to the Fund, the Fund's stockholders, directors, officers,
employees, principals, affiliates, and agents, and their respective successors
and assigns except for an act, omission, conduct, or activity in respect of the
Fund which shall be found by a court of competent jurisdiction upon entry of
final judgment (or, if no final judgment shall be entered, by an opinion
rendered to the fund by independent legal counsel retained by the Fund and
acceptable to the Investment Advisor for such purpose) to have constituted
fraud, willful misconduct or gross negligence and to have not been done by any
such person in good faith and in the reasonable belief that such act, omission,
conduct, or activity was in or not opposed to the best interests of the Fund.
(b) Fund's Agreement to Indemnify. The Fund shall indemnify,
hold harmless, and defend the Investment Advisor and its employees, affiliates
and agents, and their respective successors and assigns from and against any
loss, liability, claim, demand, damage, cost, and expense (including reasonable
attorneys' and accountants' fees and expenses), to which an indemnified party
may become subject in respect of the Fund (including in connection with the
defense or settlement of claims and in connection with any administrative
proceedings), arising out of or based upon this Agreement or the Investment
Advisor's activities on behalf of the Fund, provided that such loss, liability,
claim, demand, damage, cost, and expense did not constitute fraud, willful
misconduct, or gross negligence by the Investment Advisor and was done by the
Investment Advisor and its employees, affiliates and agents in good faith and in
the reasonable belief that it was in or not opposed to the best interests of the
Fund.
(c) Indemnity Procedure. Promptly after receipt by an
indemnified party under Section 11(b) of notice of the commencement of an action
or claim to which either such Section may apply, the indemnified party shall
notify the indemnifying party in writing of the commencement of such action or
claim if a claim for indemnification in respect of such action or claim may be
made against the indemnifying party under either such Section; but the omission
so to notify the indemnifying party shall not relieve the indemnifying party
from any liability which the indemnifying party may have to the indemnified
party under either such Section (except where such omission shall have
materially prejudiced the indemnifying party) or otherwise. In case any such
action or claim shall be brought against an indemnified party and the
indemnified party shall notify the indemnifying party of the commencement of
such action or claim, the indemnifying party shall be entitled to participate in
such action or claim and, to the extent that the indemnifying party may desire,
to assume the defense of such action or claim with counsel selected by the
indemnifying party and approved by the indemnified party. After notice from the
indemnifying party to the indemnified party of the indemnifying party's election
so to assume the defense of such action or claim, the indemnifying party shall
not be liable to the indemnified party for any legal, accounting, and other fees
and expenses subsequently incurred by the indemnified party in connection with
the defense of such actions or claim other than reasonable costs of
investigation.
Notwithstanding any provision of this Section 11(d) to the contrary, if
in any action or claim in which both the indemnifying party and the indemnified
party are named as parties and the defense of both parties gives rise to a
conflict of interest, the indemnified party may retain its own counsel in
connection with such action or claim, in which case the indemnifying party shall
be responsible for any legal, accounting and other fees and expenses reasonably
incurred by or on behalf of it in connection with investigating or defending
such action or claim. In no event shall an indemnifying party be liable for the
fees and expenses of more than one counsel for all indemnified parties in
connection with any one action or claim or in connection with separate but
similar or related actions or claims in the same jurisdiction arising out of the
same general allegations. An indemnifying party shall not be liable for a
settlement of any such action or claim effected without its written consent, but
if any such action or claim shall be settled with the written consent of an
indemnifying party or if there shall be a final judgment for the plaintiff in
any such action or claim, the indemnifying party shall indemnify, hold harmless,
and defend
Page 26 of 30 Pages
an indemnified party from and against any loss, liability, or expense in
accordance with Section 6 by reason of such settlement or judgment.
(d) The Fund shall advance to the Investment Advisor the
reasonable costs and expenses of investigating and/or defending any loss,
liability, claim, demand, or damage to which the Investment Advisor may become
subject in respect of the Fund, subject to receiving a written undertaking from
the Investment Advisor to repay any such amounts advanced to it in the event and
to the extent of any subsequent determination that the Investment Advisor was
not entitled to indemnification under this Section 11.
12. Representations and Warranties
(a) The Investment Advisor hereby represents and warrants to
the Fund as follows:
(i) The Investment Advisor has full power and
authority and is permitted by applicable law to enter into and carry out its
obligations under this Agreement and own its properties and conduct its business
as described in this Agreement.
(ii) The performance of the obligations under this
Agreement by the Investment Advisor will not conflict with, violate the terms of
or constitute a default under any indenture, mortgage, deed of trust, loan
agreement, management or advisory agreement, or other agreement or instrument to
which the Investment Advisor or its employees or affiliates is a party or by
which any such person is bound or to which any of the property or assets of any
such person is subject, or any order, rule, law, regulation or other legal
requirement applicable to any such person or to the property or assets of any
such person.
(iii) The Investment Advisor has complied and will
continue to comply with all laws, rules, and regulations having application to
its or his business, properties, and assets. Except to the extent otherwise
disclosed to the Fund, there are no actions, suits, proceedings, or
investigations pending or threatened against the Investment Advisor or its
principals, at law or in equity or before or by any federal, state, municipal,
or other governmental department, commission, board, bureau, agency, or
instrumentality, any self-regulatory organization, or any exchange that might be
material to an investor investing in the Fund.
(iv) The Investment Advisor is duly organized and
validly existing under the laws of the State of Delaware.
(v) The Investment Advisor represents and the Fund
acknowledges and agrees that:
(A) The performance fee and management fee
may create an incentive for the Investment Advisor to make investments that are
riskier or more speculative than would be the case in the absence of such fees.
(B) The Investment Advisor may receive
increased compensation with regard to unrealized appreciation as well as
realized gains in the Fund's account.
(C) The performance fee may result in
substantially higher payments than alternative compensatory arrangements with
other managers.
(vi) The foregoing representations and warranties
shall be continuing during the term of this Agreement and if at any time any
event shall occur which could make any of the
Page 27 of 30 Pages
foregoing materially incomplete or inaccurate, the Investment Advisor promptly
shall notify the Fund of the occurrence of such event.
(b) The Fund hereby represents and warrants to the Investment
Advisor as follows:
(i) The information contained in the Memorandum,
other than information supplied by the Investment Advisor, is true, accurate,
and complete in all material respects and does not contain any misleading or
untrue statement of a material fact or any omission to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading.
(ii) The Fund has full power and authority and is
permitted by applicable law to enter into and carry out its obligations under
this Agreement and to own its properties and conduct its business as described
in this Agreement and the Memorandum.
(iii) The performance of the obligations under this
Agreement by the Fund will not conflict with, violate the terms of, or
constitute a default under any indenture, mortgage, deed of trust, loan
agreement, management or advisory agreement, or other agreement or instrument to
which the Fund is a party or by which the Fund is bound or to which any of the
property or assets of the fund is subject, or any other, rule, law, regulation,
or other legal requirement applicable to the fund or to the property or assets
of the Fund.
(iv) The Fund has all required governmental and
regulatory registrations and memberships necessary to carry out its obligations
under this Agreement.
(v) The Fund has complied and will continue to
comply with all laws, rules, and regulations having application to its business,
properties, and assets. Except as set forth in the Memorandum, there are no
actions, suits, proceedings, or investigations pending or threatened against the
Fund, at law or inequity or before or by any federal, state, municipal, or other
governmental department, commission, board, bureau, agency, or instrumentality,
any self-regulatory organization, or any exchange.
(vi) The Fund is duly organized and validly existing
under the laws of the jurisdiction of its incorporation.
(vii) This Agreement constitutes an arm's length
agreement between the Fund and the Investment Advisor. The Fund understands the
method of compensation provided for herein and its risks.
(viii) The foregoing representations and warranties
shall be continuing during the term of this Agreement and if at any time any
event shall occur which could make any of the foregoing incomplete or
inaccurate, the Fund shall promptly notify the Investment Advisor of the
occurrence of such event.
13. Entire Agreement. This Agreement constitutes the entire agreement
between the parties hereto with respect to the matters referred to herein, and
no other agreement, verbal or otherwise, shall be binding as between the parties
unless it shall be in writing and signed by the party against whom enforcement
is sought.
14. Assignment. This Agreement shall not be assigned by either party
hereto without the prior express written consent of the other party.
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15. Amendment; Waiver. This Agreement shall not be amended except by a
writing signed by the parties hereto. No waiver of any provision of this
Agreement shall be implied from any course of dealing between the parties hereto
or form any failure by either party hereto to assert its or his rights hereunder
on any occasion or series of occasions.
16. Severability. If any provision of this Agreement, or the
application of any provision to any person or circumstance, shall be held to be
inconsistent with any present or future law, ruling, rule, or regulation of any
court or governmental or regulatory authority having jurisdiction over the
subject matter hereof, such provision shall be deemed to be rescinded or
modified in accordance with such law, ruling, rule, or regulation, and the
remainder of this Agreement, or the application of such provision to persons or
circumstances other than those as to which it shall be held inconsistent, shall
not be affected thereby.
17. Notices. Any notice required or desired to be delivered under this
Agreement shall be in writing and shall be delivered by courier service, postage
prepaid mail, telex, telegram, or other similar means and shall be effective
upon actual receipt by the party to which such notice shall be directed,
addressed as follows (or to such other address as the party entitled to notice
shall hereafter designate in accordance with the terms hereof):
if to the Fund:
Network IV LLC
X.X. Xxx 000
Xxxxxxxxxxx Xxxxx
Xxxxx Xxxxxx
Xxxxxx Xxxxxxx, B.W.I.
Fax: (000) 000-0000
with copies to:
Abacus Asset Management Limited
La Motte Xxxxxxxx
St. Helier
Jersey JB1 1BJ
Channel Islands
Fax: (000) 00 000 0000
and
Xxxxxxx Natbody, Esq.
Rosenman & Xxxx, LLP
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Fax: (000) 000-0000
if to the Investment Advisor:
Xxxxxx Management Company
000 Xxxxxx Xxxxxx, 0xx Xxxxx
Xxxxxxxxx, Xxxxxxxxxxx 00000
Att: Xxxx X'Xxxxxxx
Fax: (000) 000-0000
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18. Governing Law. This Agreement shall be governed by and construed in
accordance with the law of the State of New York, U.S.A. (excluding the law
thereof which requires the application of or reference to the law of any other
jurisdiction).
19. Consent to Jurisdiction. The parties hereto agree that any action
or proceeding arising directly, indirectly, or otherwise in connection with, out
of, related to, or from this Agreement, any breach hereof, or any transaction
covered hereby, shall be resolved, whether by arbitration or otherwise, within
the County, City, and State of New York. Accordingly, the parties consent and
submit to the jurisdiction of the federal and state courts and any applicable
arbitral body located within the County, City, and State of New York. The
parties further agree that any such action or proceeding brought by either party
to enforce any right, assert any claim, or obtain any relief whatsoever in
connection with this Agreement shall be brought by such party exclusively in the
federal or state courts, or if appropriate before any applicable arbitral body,
located within the County, City, and State of New York.
20. Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed an original but all of which together shall constitute
one and the same instrument.
21. Headings. Headings to sections and subsections in this Agreement
are for the convenience of the parties only and are not intended to be a part of
or to affect the meaning or interpretation hereof.
22. No Third Party Beneficiaries. This Agreement is not intended to and
shall not convey any rights to persons not a party to this Agreement.
23. Sales Literature and Reports. No sales literature or reports to
investors describing the Investment Advisor, its investment strategies,
personnel, or performance (other than the performance of the Fund) will be
distributed by the Fund or its agents without the prior written approval of the
Investment Advisor.
IN WITNESS WHEREOF, this Agreement has been executed for and on behalf
of the undersigned as of the day and year first written above.
NETWORK IV LLC
By: /s/ Xxxxx Xxxxxx
----------------------------
Name: Xxxxx Xxxxxx
Title: Director
XXXXXX MANAGEMENT COMPANY
By: /s/ Xxxxxxx X. X'Xxxxxxx
----------------------------
Name: Xxxxxxx X. X'Xxxxxxx
Title: Managing Director
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