FORM OF
INVESTMENT ADVISORY AGREEMENT
AGREEMENT made this fourth day of December, 1998 by and between
Xxxxxxxx International Funds, a Delaware Business Trust (the "Trust")
and Xxxxxxxx International Capital Management, LLC, a Delaware
limited
liability company (the "Adviser").
1. Duties of Adviser. The Trust hereby appoints the Adviser to act as
investment adviser to the Xxxxxxxx Asian Growth and Income Fund (the "Series")
for the period and on such terms set forth in this Agreement. The Trust
employs the Adviser to manage the investment and reinvestment of the assets
of the Series, to determine in its discretion the assets to be held
uninvested, to provide the Trust with records concerning the Adviser's
activities which the Trust is required to maintain, and to render regular
reports to the Trust's officers and Board of Trustees concerning the Adviser's
discharge of the foregoing responsibilities. The Adviser shall discharge the
foregoing responsibilities subject to the control of the officers and the
Board of Trustees of the Trust, and in compliance with the objectives,
policies and limitations set forth in the Trust's Prospectus and Statement of
Additional Information. The Adviser accepts such employment and agrees to
render the services and to provide, at its own expense, the office space,
furnishings, equipment and the personnel required by it
to perform the services on the terms and for the compensation provided herein.
2. Portfolio Transactions. The Adviser shall provide the Series with a
trading department. The Adviser shall select the brokers or dealers that
will execute the purchases and sales of securities for the Series and is
directed to use its best efforts to ensure that the best available price and
most favorable execution of securities transactions for the Series are
obtained.
The Series will bear all expenses associated with its investment activities,
including, without limitation, brokerage commissions and custody expenses.
Subject to policies established by the Board of Trustees of the Trust and
communicated to the Adviser, it is understood that the Adviser will not be
deemed to have acted unlawfully, or to have breached a fiduciary duty to the
Trust or in respect of the Series, or be in breach of any obligation owing
to the Trust or in respect of the Series under this Agreement, or otherwise,
solely by reason of its having caused the Series to pay a member of a
securities exchange, a broker or a dealer a commission for effecting a
securities transaction for the Series in excess of the amount of commission
another member of an exchange, broker or dealer would have charged if the
Adviser determines in good faith that the commission paid was reasonable in
relation to the brokerage or research services provided by such member,
broker or dealer, viewed in terms of the particular transaction or the
Adviser's overall responsibilities with respect to the accounts, including
the Series, as to which it exercises investment discretion. The Adviser
will promptly communicate to the officers and directors of the Trust such
information relating to Series transactions as they may reasonably request.
3. Compensation of the Adviser. For the services to be rendered by the
Adviser as provided in Section 1 and 2 of this Agreement, the Series shall
.pay to the Adviser within five business days after the end of each calendar
month, a monthly fee of one twelfth of 1.00% of the Series' average daily
net assets for the month. The net asset value shall be calculated in the
manner provided in the Series' prospectus and statement of additional
information then in effect. The Adviser may reduce any portion of the
compensation or reimbursement of expenses due to it pursuant to this
Agreement. Any fee withheld pursuant to this paragraph from the Adviser
shall be reimbursed by the Series to the Adviser in the first, second or
third (or any combination thereof) fiscal year next succeeding the fiscal
year of the withholding if the aggregate expenses for the next succeeding
fiscal year or second succeeding fiscal year or third succeeding fiscal year
do not exceed any more restrictive limitation to which the Adviser hasagreed.
The Adviser generally may request and receive reimbursement for
the oldest reductions and waivers before payment for fees and expenses
for the current year.
4. In the event of termination of this Agreement, the fee provided in this
Section 3 shall be paid on a pro rate basis, based on the number of days when
this Agreement was in effect.
5. Reports. The Series and the Adviser agree to finish to each other such
information regarding their operations with regard to their affairs as each
may reasonably request.
6. Status of Adviser. The services of the Adviser to the Series are not to
be deemed exclusive, and the Adviser shall be free to render similar services
to others so long as its services to the Series are not impaired thereby.
7. Liability of Adviser. In the absence of willful misfeasance, bad faith,
gross negligence or reckless disregard by the Adviser of its obligations and
duties hereunder, the Adviser shall not be subject to any liability whatsoever
to the Series, or to any shareholder of the Series, for any error of judgment,
mistake of law or any other act or omission in the course of, or connected
with, rendering services hereunder including, without limitation, for any
losses that may be sustained in connection with the purchase, holding,
redemption or sale of any security on behalf of the Series.
8. Duration and Termination. This Agreement shall become effective on
December 4, 1998 provided that first it is approved by the Board of Trustees
of the Trust, including a majority of those trustees who are not parties to
this Agreement or interested persons of any party hereto, in the manner
provided in section 15(c) of the Investment Company Act of 1940, and by the
holders of a majority of the outstanding voting securities of the Series; and
shall continue in effect until December 4, 2000. Thereafter, this Agreement
may continue in effect only if such continuance is approved at least annually
by: (i) the Trust's Board of Trustees or, (ii) by the vote of a majority of
the outstanding voting securities of the Series; and in either event by a
vote of a majority of those trustees of the Trust who are not parties to
this Agreement or interested persons of any such party in the manner provided
in section 15(c) of the Investment Company Act of 1940. This Agreement may
be terminated by the Trust at any time, without the payment of any penalty,
by the Board of Trustees of the Trust at any time, without the payment of
any penalty, by the Board of Trustees of the Trust or by vote of the holders
of a majority of the outstanding voting securities of the Series on 60 days'
written notice to the Adviser. This Agreement may be terminated by the
Adviser at any time, without the payment of any penalty, upon 60 days'
written notice to the Trust. This Agreement will automatically terminate in
the event of its assignment. Any notice under this Agreement shall be
given in writing, addressed and delivered or mailed postpaid, to the other
party at the principal office of such party.
As used in this Section 8, the terms "assignment" "interested person", and
"a vote of a majority of the outstanding voting securities" shall have the
respective meanings set forth in Section 2(a)(4), Section 2(a)(19) and
Section 2(a)(42) of the 1940 Act and Rule 18f-2 thereunder.
9. Name of Adviser. The parties agree that the Adviser has a proprietary
interest in the name "Xxxxxxxx," and the Trust agrees to promptly take such
action as may be necessary to delete from its corporate name and/or the
name of the Series any reference to the name of the Adviser or the name
"Xxxxxxxx," promptly after receipt from the Adviser of a written request
therefore.
10. Severability. If any provisions of this Agreement shall be held or made
invalid by a court decision, statute, rule or otherwise, the remainder of
this Agreement shall not be affected thereby.
11. Governing Law. This agreement shall be governed by and construed and
interpreted in accordance with the laws of the State of California.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the fourth day of December, 1998.
ATTEST: XXXXXXXX INTERNATIONAL FUNDS
_________________________ ___________________________________
Xxxxx Xxxxxxxxxx, Secretary G. Xxxx Xxxxxxxx, President
ATTEST: XXXXXXXX INTERNATIONAL
CAPITAL MANAGEMENT, LLC
_________________________ ___________________________________
Xxxxx Xxxxxxxxxx, Secretary Xxxx X. Xxxxxxx, Vice President
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