Exhibit 99(d)(6)
INTERIM INVESTMENT SUB-ADVISORY CONTRACT
AGREEMENT, made as of the 28th day of July 2000, among Munder Capital
Management (the "Advisor"), a Delaware partnership, Framlington Overseas
Investment Management Limited (the "Sub-Advisor"), a subsidiary of Framlington
Group Limited, a private limited company, incorporated in England and in Wales
and registered under the Investment Advisers Act of 1940, as amended (the
"Advisers Act"), and The Munder Funds, Inc. (the "Company"), a Maryland
corporation and a diversified open-end management investment company under the
Investment Company Act of 1940, as amended (the "1940 Act").
WHEREAS, the Advisor, the Sub-Advisor and the Company have entered into an
Investment Sub-Advisory Agreement, dated April 6, 2000 pursuant to which the
Sub-Advisor renders investment advisory services to the portfolio of the Company
listed on Appendix A attached hereto (the "Fund");
WHEREAS, such Investment Sub-Advisory Agreement, by its terms, and in
accordance with certain provisions of the Investment Company Act of 1940 (the
"1940 Act") will terminate upon its assignment;
WHEREAS, in connection with a proposed change in control (an "assignment"
under the 0000 Xxx) of the Sub-Advisor resulting from a proposed acquisition
transaction by HSBC Holdings plc of Credit Commercial de France S.A., a joint-
owner of the Sub-Advisor an automatic termination of the Investment Sub-Advisory
Agreement will occur;
WHEREAS, Rule 15a-4 of the 1940 Act provides for a temporary exemption from
automatic termination of an advisory contract if a fund's board approves an
interim contract;
WHEREAS, the Board of Directors of the Company, including a majority of the
Independent Directors, has voted in person at its July 10, 2000 meeting to
approve an interim investment sub-advisory contract (the "Interim Contract") so
that the Sub-Advisor may continue to provide advisory services to the Fund until
such time as the shareholders of the Fund will have voted on the approval or
disapproval of a new Investment Sub-Advisory Agreement;
WHEREAS, the Adviser wishes to retain the Sub-Advisor to render investment
advisory services to the Fund listed in Appendix A under an Interim Contract;
and
NOW, THEREFORE, in consideration of the promises and mutual covenants
herein contained, it is agreed among the Company, the Advisor and the Sub-
Advisor as follows:
1. Appointment
The Advisor hereby appoints the Sub-Advisor to act as sub-investment
advisor to the Fund for the periods and on the terms set forth herein. The Sub-
Advisor accepts the appointment and agrees to furnish the services set forth
herein for the compensation provided herein.
2. Services as Sub-Investment Advisor
Subject to the general supervision and direction of the Board of Directors
of the Company and the Advisor, the Sub-Advisor will (i) manage a portion of
each of the investments of the Fund, or a portion thereof as designated by the
Advisor in accordance with the Fund's investment objectives, restrictions and
policies as stated in the Fund's Prospectus and the Statement of Additional
Information filed with the Securities and Exchange Commission, as they may be
amended from time to time; (ii) make investment decisions for the Fund; (iii)
place purchase and sale orders on behalf of each Fund; and (iv) select brokers-
dealers to execute trades on behalf of the Fund.
The Sub-Advisor further agrees that, in performing its duties hereunder, it
will:
(a) comply with the 1940 Act and all rules and regulations thereunder, the
Advisers Act, the Internal Revenue Code, of 1986, as amended (the "Code"), and
all other applicable federal and state laws and regulations, and with any
applicable procedures adopted by the Company's Directors as advised to the Sub-
Advisor from time to time;
(b) use reasonable efforts to manage the Fund so that it will qualify, and
continue to qualify, as a regulated investment company under Subchapter M of the
Code and regulations issued thereunder;
(c) maintain books and records with respect to the Fund's securities
transactions, render to the Advisor or Board such periodic and special reports
as the Board of Directors of the Company may reasonably request, and keep the
Advisor and the Directors informed of developments materially affecting the
Fund's portfolios;
(d) make available to the Fund's administrator and the Company, promptly
upon their request, such copies of the investment records and ledgers with
respect to the Fund as may be required to assist the administrator and the
Company in their compliance with applicable laws and regulations; and
(e) immediately notify the Company in the event that the Sub-Advisor or any
of its affiliates: (1) becomes aware that it is subject to a statutory
disqualification that prevents the Sub-Advisor from serving as investment
advisor pursuant to this Interim Contract; or (2) becomes aware that it is the
subject of an administrative proceeding or enforcement action by the Securities
and Exchange Commission or other regulatory authority. The Sub-Advisor further
agrees to notify the Company immediately of any material fact known to the Sub-
Advisor respecting or relating to the Sub-Advisor that is not contained in the
Company's Registration Statement regarding the Fund, or any amendment or
supplement thereto, but that is required to be disclosed therein, and of any
statement contained therein that becomes untrue in any material respect.
3. Documents
The Advisor has delivered properly certified or authenticated copies of
each of the following documents to the Sub-Advisor and will deliver to it all
future amendments and supplements thereto, if any:
(a) certified resolution of the Board of Directors of the Company
authorizing the approval of the form of this Interim Contract;
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(b) the Registration Statement describing the Fund as filed with the
Securities and Exchange Commission and any amendments thereto; and
(c) exhibits, powers of attorneys, certificates and any and all other
documents relating to or filed in connection with the Registration Statement
described above.
4. Brokerage
In selecting brokers-dealers to execute transactions on behalf of the Fund,
the Sub-Advisor will use its best efforts to seek the best overall terms
available. In assessing the best overall terms available for any Fund
transaction, the Sub-Advisor will consider all factors it deems relevant,
including, but not limited to, the breadth of the market in the security, the
price of the security, the financial condition and execution capability of the
broker-dealer and the reasonableness of the commission, if any, for the specific
transaction and on a continuing basis. In selecting brokers-dealers to execute
a particular transaction, and in evaluating the best overall terms available,
the Sub-Advisor is authorized to consider the brokerage and research services
(as those terms are defined in Section 28(e) of the Securities Exchange Act of
1934, as amended (the "1934 Act")) provided to the Fund and/or other accounts
over which the Sub-Advisor or its affiliates exercise investment discretion.
The parties hereto acknowledge that it is desirable for the Company that the
Sub-Advisor have access to supplemental investment and market research and
security and economic analysis provided by brokers-dealers who may execute
brokerage transactions at a higher cost to the Company than may result when
allocating brokerage to other brokers on the basis of seeking the most favorable
price and efficient execution. Therefore, the Sub-Advisor may cause the Fund to
pay a broker-dealer which furnishes brokerage and research services a higher
commission than that which might be charged by another broker-dealer for
effecting the same transaction, provided that the Sub-Advisor determines in good
faith that such commission is reasonable in relation to the value of the
brokerage and research services provided by such broker-dealer, viewed in terms
of either the particular transaction or the overall responsibilities of the Sub-
Advisor to the Fund. It is understood that the services provided by such
brokers may be useful to the Sub-Advisor in connection with the Sub-Advisor's
services to other clients. In accordance with Section 11(a) of the 1934 Act and
Rule 11a2-2(T) thereunder and subject to any other applicable laws and
regulations, the Sub-Advisor and its affiliates are authorized to effect
portfolio transactions for the Fund and to retain brokerage commissions on such
transactions.
5. Records
The Sub-Advisor agrees to maintain and to preserve for the periods
prescribed under the 1940 Act any such records as are required to be maintained
by the Sub-Advisor with respect to the Fund by the 1940 Act. The Sub-Advisor
further agrees that all records which it maintains for the Fund are the property
of the Fund and it will promptly surrender any of such records upon request.
6. Standard of Care
The Sub-Advisor shall exercise its best judgment in rendering the services
under this Interim Contract. The Sub-Advisor shall not be liable for any error
of judgment or mistake of law or for any loss suffered by the Advisor, the Fund
or the Fund's shareholders in connection with the matters to which this Interim
Contract relates, provided that nothing herein shall be deemed to protect or
purport to protect the Sub-Advisor against any liability to the Advisor, the
Fund or to the Fund's shareholders to which the Sub-Advisor would otherwise be
subject by reason of willful misfeasance, bad faith or gross negligence on its
part in the performance of its duties or by reason of the Sub-Advisor's reckless
disregard of its
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obligations and duties under this Interim Contract. As used in this Section 6,
the term "Sub-Advisor" shall include any officers, directors, employees, or
other affiliates of the Sub-Advisor performing services with respect to the
Fund.
7. Compensation
In consideration of the services rendered pursuant to this Interim
Contract, the Advisor will pay the Sub-Advisor a fee at an annual rate based on
the Fund's average daily net assets as set forth on Appendix A. This fee shall
be computed and accrued daily. Such fees earned shall be maintained in an
interest-bearing escrow account with the Company's custodian or a bank until
such time as the Fund's outstanding voting securities approve a new investment
Sub-Advisory Agreement. At such time, the escrowed amount will be paid to the
Sub-Advisor. However, should the new Investment Sub-Advisory Agreement with the
Sub-Advisor not be approved by the Fund's outstanding voting securities, the
Sub-Advisor will be paid from the escrow account the lesser of (i) any costs
incurred in performing its duties under the Interim Contract (plus interest
earned on that amount while in escrow); or (ii) the total amount in the escrow
account (plus interest earned). For the purpose of determining fees payable to
the Sub-Advisor, the value of the Fund's average daily net assets shall be
computed at the times and in the manner specified in the Fund's Prospectuses or
Statement of Additional Information. As to the Fund, if, in any fiscal year,
the Advisor determines to waive fees payable to it by the Fund or reimburse
expenses to the Fund, the Sub-Advisor will bear that portion of the fee waiver
or expense reimbursement which bears the same relation to such fee waiver or
expense reimbursement as the fee payable by the Fund to the Sub-Advisor during
such year bears to the total of (i) the annual fee payable by the Fund to the
Sub-Advisor plus (ii) the annual fee payable by the Fund to the Advisor, in each
case without giving effect to the fee waiver or expense reimbursement.
8. Expenses
The Sub-Advisor will bear all expenses in connection with the performance
of its services under this Interim Contract. The Fund will bear certain other
expenses to be incurred in its operation, including: taxes, interest, brokerage
fees and commissions, if any, fees of Directors of the Company who are not
officers, directors, or employees of the Advisor or any Sub-Advisor; Securities
and Exchange Commission fees and state blue sky qualification fees; charges of
custodians and transfer and dividend disbursing agents; the Fund's proportionate
share of insurance premiums; outside auditing and legal expenses; costs of
maintenance of the Fund's existence; costs attributable to investor services,
including, without limitation, telephone and personal expenses; charges of an
independent pricing service; costs of preparing and printing prospectuses and
statements of additional information for regulatory purposes and for
distribution to existing shareholders; costs of shareholders' reports and
meetings of the shareholders of the Fund and of the officers or Board of
Directors of the Company; and any extraordinary expenses.
9. Services to Other Companies or Accounts
The investment advisory services of the Sub-Advisor to the Fund under this
Interim Contract are not to be deemed exclusive, and the Sub-Advisor, or any
affiliate thereof, shall be free to render similar services to other investment
companies and other clients (whether or not their investment objectives and
policies are similar to those of the Fund) and to engage in the activities, so
long as its services hereunder are not impaired thereby.
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10. Duration and Termination
This Interim Contract shall become effective on the date first above
written and shall continue in effect, unless sooner terminated as provided
herein, for no greater than 150 days from such date or until the majority of the
Fund's outstanding voting securities approve a new Investment Sub-Advisory
Agreement with the Sub-Advisor. This Interim Contract is terminable, without
payment of any penalty, on not more than (10) calendar days written notice to
the Sub-Advisor by the Board of Directors of the Company or a "majority" (as
defined in the 0000 Xxx) of the Fund's outstanding voting securities. This
Interim Contract will terminate automatically in the event of its "assignment"
(as defined in the 1940 Act).
All transactions already initiated hereunder at the time of termination
shall be completed in accordance with the Sub-Advisor's usual practice.
On termination, the Sub-Advisor shall be entitled to charge the Advisor no
additional fee save for:
(a) a proportion of the fee, corresponding to that part of the period by
reference to which any periodic fees are payable, which has expired at the date
of termination;
(b) any additional expenses which the Sub-Advisor necessarily incurs in
terminating this Interim Contract.
11. Amendment
No provision of this Interim Contract 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, and no amendment of this Interim Contract shall be effective with
respect to the Fund until approved by an affirmative vote of (i) a majority of
the outstanding voting securities of the Fund, and (ii) a majority of the
Directors of the Company, including a majority of Directors who are not
interested persons of any party to this Interim Contract, cast in person at a
meeting called for the purpose of voting on such approval, if such approval is
required by applicable law.
12. Names
It is understood that the name "Framlington Overseas Investment Management
Limited" or any derivative thereof or logo associated with that name is the
valuable property of the Sub-Advisor and its affiliates, and that the Fund has
the right to use such name (or derivative thereof or associated logo) only so
long as this Interim Contract shall continue with respect to that Fund. Upon
termination of this Interim Contract, the Fund shall forthwith cease to use such
name (or derivative thereof or associated logo). To the extent used in the
United States, it is understood that the name "Munder International NetNet Fund"
or any derivative thereof or logo associated with that name is the valuable
property of the Company and the Sub-Adviser shall have the right to use such
name (or derivative thereof or associated logo) anywhere in the world for so
long as this Agreement shall continue. For the avoidance of doubt, after
termination of this Interim Contract, the Sub-Adviser shall not use any
derivative or logo of Munder International NetNet Fund which includes the name
Munder and/or Munder International and/or NetNet, except as is currently in use.
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13. Miscellaneous
(a) The provisions set forth on Appendix B with respect to the Sub-Advisor
are incorporated herein by reference and considered part of this Interim
Contract. This Interim Contract constitutes the full and complete agreement of
the parties hereto with respect to the subject matter hereof.
(b) Titles or captions of sections contained in this Interim Contract are
inserted only as a matter of convenience and for reference, and in no way
define, limit, extend or describe the scope of this Interim Contract or the
intent of any provisions thereof.
(c) This Interim Contract may be executed in several counterparts, all of
which together shall for all purposes constitute one Interim Contract, binding
on all the parties.
(d) This Interim Contract and the rights and obligations of the parties
hereunder shall be governed by, and interpreted, construed and enforced in
accordance with the laws of the State of Michigan.
(e) If any provisions of this Interim Contract or the application thereof
to any party or circumstances shall be determined by any court of competent
jurisdiction to be invalid or unenforceable to any extent, the remainder of this
Interim Contract or the application of such provision to such person or
circumstance, other than these as to which it is so determined to be invalid or
unenforceable, shall not be affected thereby, and each provision hereof shall be
valid and shall be enforced to the fullest extent permitted by law.
(f) Notices of any kind to be given to the Sub-Advisor by the Advisor shall
be in writing and shall be duly given if mailed or delivered to the Sub-Advisor
at 000 Xxxxxxxxxxx, Xxxxxx XX0X 0XX, Xxxxxxx, or at such other address or to
such individual as shall be specified by the Sub-Advisor to the Advisor. Notices
of any kind to be given to the Advisor by the Sub-Advisor shall be in writing
and shall be duly given if mailed or delivered to 000 Xxxxxx Xxxxxx, Xxxxxxxxxx,
Xxxxxxxx 00000, or at such the address or to such individual as shall be
specified by the Company to the Sub-Advisor.
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IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed by their officers designated below as of the day and year first above
written.
THE MUNDER FUNDS, INC.
By: /s/ Xxxxx X. Xxxxxxxx
-----------------------
Xxxxx X. Xxxxxxxx
MUNDER CAPITAL MANAGEMENT
By: /s/ Xxxxx X. Xxxxxxxx
-----------------------
Xxxxx X. Xxxxxxxx
FRAMLINGTON OVERSEAS INVESTMENT
MANAGEMENT LIMITED
By: /s/ Xxxxxx X. Xxxxxx
------------------------
APPENDIX A
Annual Fees (as a Percentage of
Funds Average Daily Net Assets)
----- --------------------------------
Munder International NetNet Fund 0.625%
APPENDIX B
Additional IMRO Provisions
--------------------------
The provisions set forth herein are subject to the limitations of the 1940 Act,
the Advisers Act and the Fund's Prospectus and Statement of Additional
Information. In the extent of a conflict of terms or provisions between this
Appendix B and the Agreement, the Agreement shall govern.
1. Framlington Overseas Investment Management Limited (the "Sub-Advisor") is
regulated in the conduct of its investment business in the United Kingdom
by the Investment Management Regulatory Organization ("IMRO").
2. Services
The Sub-Advisor will provide discretionary investment management services
for Munder Capital Management (the "Advisor"). Further details of the
services to be provided are set out in the Interim Investment Sub-Advisory
Contract (the "Interim Contract") to which this Appendix B is incorporated
by reference. Such services are to be provided on the basis that the
Advisor falls within the category of non-private investor.
3. Fees
Details of the Sub-Advisory fees are set out in Paragraph 7 of the Interim
Contract. Any remuneration received by the Sub-Advisor hereunder shall
supplement any other remuneration receivable by the Sub-Advisor in
connection with transactions effected by the Sub-Advisor with or for the
Advisor under this or any other agreement with the Advisor.
4. Termination
The provisions in respect of termination of the Interim Contract are set
out in Paragraph 10 of the Interim Contract. Termination of the Interim
Contract by either party shall be without prejudice to the completion of
any transaction already initiated which shall be completed in accordance
with market practice.
5. The Portfolio
The investment objectives and any restrictions on the types of investments
and markets in which transactions may be affected are prescribed in
applicable laws (see Paragraph 2 of the Interim Contract) and are set-out
in the Fund's Prospectus and the Statement of Additional Information or as
notified to and accepted by the Sub-Advisor in accordance with the terms of
the Interim Contract.
6. Subject to the 1940 Act, the Investment Adviser's Act, the Prospectus and
the Statement of Additional Information, the Sub-Advisor shall be entitled
without prior reference to the Advisor to effect on behalf of the Advisor
transactions:
a) in investments the price of which may be being stabilized;
b) in units in Collective Investment Schemes which are not Regulated
Collective Investment Schemes and which are not regulated in
accordance with the 1940 Act and other applicable laws; and
c) where the Sub-Advisor may act as a principal or as agent between
another client or any Associate of the Sub-Advisor and the Advisor
provided that the terms of the transaction are at least as good as
those generally available elsewhere.
7. The Sub-Advisor may commit the Advisor to supplement the Fund either by
borrowing or by committing the Advisor to a contract the performance of
which may require the Advisor to supplement the Fund but such borrowing may
only take place in accordance with the 1940 Act.
With respect to the above, borrowing shall only be effected on a short-term
basis ancillary to the proper management of the Fund pending settlement of
other transactions or to protect against currency fluctuations and in any
event will be in accordance with relevant regulations and the guidelines
set out in the Prospectus and the Statement of Additional Information.
8. Subject to the 1940 Act, the Advisers Act, the Prospectus and the Statement
of Additional Information, the Sub-Advisor may effect without prior
reference to the Advisor transactions involving an obligation to underwrite
any issue or offer for sale of investments by or through parties unrelated
to the Sub-Advisor (and there are no restrictions on the categories of
securities which may be so underwritten) provided that such underwriting
shall be limited to 25% of the value of any Fund.
9. Valuation, Reports and Records
The Sub-Advisor shall send to the Advisor, at least once every calendar
quarter, a statement of the contents and valuation of the Funds, the
transactions entered into during such period and other information required
by the IMRO Rules to be contained in such statement. Such statement may
contain a measure of performance of the Funds by reference to the
appropriate indices.
The Sub-Advisor shall forward contract notes to the administrator of the
Funds, State Street Bank and Company, as soon as possible after the
transaction at the address set out in the Prospectus or to such other
address as the Advisor may provide to the Sub-Advisor for that purpose.
10. Complaints
The Sub-Advisor has in operation, and ensures compliance with, a written
procedure for the effective consideration and proper handling of any
complaints the Advisor may have. The Advisor also has the right to make a
complaint direct to the Investment Ombudsman, at 0 Xxxxxxxxxx Xxxxx, Xxxxxx
XX0X 0XX.
Such procedure ensures that (unless a complaint can be settled instantly
and directly by the representative or employee of the Sub-Advisor
responsible for the matters involved in the complaint and does not involve
sums which are material in relation to the financial circumstances of the
complainant) the complaint is considered by an officer or employee of
appropriate seniority who was not himself concerned in the matter or (where
this is not possible) by a person of appropriate standing who is not an
officer or employee of the Sub-Advisor.
11. Compensation
In the event that the Sub-Advisor is unable to meet any liabilities to the
Advisor, the Advisor can apply to the Sub-Advisor or to IMRO for a
statement describing the rights to compensation.
12. Hedging
Where a liability in one currency is to be matched by an asset in a
different currency or where all or part of the investments are denominated
in a currency other than sterling, a movement of exchange rates may have a
separate effect, unfavorable as well as favorable, on the gain or loss
otherwise experienced on the investment.
13. Investments Not Readily Realisable
In relation to any Investments Not Readily Realisable in which the Funds
may be invested, the Advisor is advised that these are not readily
realisable, that there can not be any certainty that market makers will be
prepared to deal in them and that proper information for determining their
current value may not be available. The Sub-Advisor will notify the
Advisor of any transaction in an Investment Not Readily Realisable in the
six monthly statements, or as requested by the Advisor.
"Investment Not Readily Realisable" has the meaning assigned to it by the
IMRO Rules and includes, inter alia, investments (which are not life
policies or units in Regulated Collective Investment Schemes) which are not
traded on or under the rules of a recognized investment exchange and
investments which are so traded, but not with sufficient frequency or
regularity for a reliable quoted price for such transactions to be
available.
14. Margined Transactions, Options, Futures and Contracts for Differences
The Sub-Advisor shall be entitled without prior reference to, or the
written consent of, the Advisor, to effect transactions in Margined
Transactions, Options, Futures and Contracts for Differences. The Advisor
is warned that the markets can be highly volatile and that such investments
may carry a high risk of loss. The Sub-Advisor will only carry out such
transactions in accordance with the Interim Contract, and the provisions of
the Prospectus, the Statement of Additional Information, and applicable
laws and regulations.
"Margined Transactions" has the meaning assigned to it by the IMRO Rules
and includes, inter alia, a transaction relating to a Future, an Option or
a Contract for Differences under the terms of which the Advisor may be
liable to make deposits in cash or collateral to secure performance of
obligations which he may have to perform when the transaction fails to be
completed or upon the earlier closing out of his position.
15. Warrants
Warrants often involve a high degree of gearing so that a relatively small
movement in the price of the security to which the warrant relates may
result in a disproportionately large movement, unfavourable as well as
favourable, in the price of the warrant.
