Re: Advisory Agreement – Manager Compensation
Exhibit (d)1.6
January 1, 2005
Xx. Xxxx X. Xxxxx, President
Xxxxx Xxxxxxx Investment
Management Company
000 X Xxxxxx
Xxxxxx, XX 00000
| Re: | Advisory Agreement – Manager Compensation |
This letter agreement amends the Advisory Agreement (the “Agreement”) dated January 1, 1999 between Xxxxx Xxxxxxx Investment Company (“FRIC”) and Xxxxx Xxxxxxx Investment Management Company (“FRIMCo”). FRIC and FRIMCo desire to amend and restate Section 6.A. of the Agreement as follows:
6. Compensation of the Manager.
| A. | As consideration for the Manager’s services to the following Sub-Trusts, the Manager shall receive from each of these Sub-Trusts an annual management fee, accrued daily at the rate of 1/365th of the applicable management fee and payable following the last day of each month, of the following annual percentages of each Sub-Trust’s average daily net assets during the month: |
| Fund |
Asset Level |
Fee | ||
| Diversified Equity | First $2 billion Next $3 billion Amount over $5 billion |
.73% .72% .70% | ||
| Special Growth | All assets | .90% | ||
| Quantitative Equity | First $2 billion Next $3 billion Amount over $5 billion |
.73% .72% .70% | ||
| Diversified Bond | All assets | .40% | ||
| Short Duration Bond | All assets | .45% | ||
| International Securities | First $2 billion Next $3 billion Amount over $5 billion |
.90% .89% .87% | ||
| Multistrategy Bond | All assets | .60% | ||
| Tax Free Bond | All assets | .30% | ||
| U.S. Government Money Market | All assets | .20% | ||
| Tax Free Money Market | All assets | .20% | ||
| Real Estate Securities | All assets | .80% | ||
| Emerging Markets | All assets | 1.15% | ||
| Money Market | All assets | .20% | ||
| Equity I | All assets | .55% | ||
Xx. Xxxx X. Xxxxx, President
January 1, 2005
Page 2
| Equity II | All assets | .70% | ||
| Equity Q | All assets | .55% | ||
| International | All assets | .70% | ||
| Fixed Income I | All assets | .25% | ||
| Fixed Income III | All assets | .50% | ||
| Tax-Managed Large Cap | All assets | .70% | ||
| Aggressive Equity | All assets | .20% | ||
| Balanced Strategy | All assets | .20% | ||
| Moderate Strategy | All assets | .20% | ||
| Conservative Strategy | All assets | .20% | ||
| Equity Balanced Strategy | All assets | .20% | ||
| Tax-Managed Global Equity | All assets | .20% | ||
| Tax-Managed Mid & Small Cap | All assets | .98% | ||
| Select Growth | All assets | .80% | ||
| Select Value | All assets | .70% | ||
| 2010 Strategy | All assets | .20% | ||
| 2020 Strategy | All assets | .20% | ||
| 2030 Strategy | All assets | .20% | ||
| 2040 Strategy | All assets | .20% | ||
| Xxxxxxx Multi-Manager Principal Protected | during the Offering Period during the Guarantee and Post Guarantee Periods: |
.00% .88% | ||
| provided, however, that if, at any time during the Guarantee Period, 100% of the Fund’s assets are invested in the Fixed Income Portfolio or the Defeasance Portfolio, the Manager will waive a portion of its fee up to 0.55% of average daily net assets of the Fund in respect of assets of the Fund that are invested in the Defeasance Portfolio or for any full day during which the Equity Portfolio constitutes zero (0) percent of the assets of the Fund (capitalized terms shall have the meanings assigned to them in the Financial Guarantee Agreement dated as of January 17, 2003 among Xxxxx Xxxxxxx Investment Management Company, Xxxxx Xxxxxxx Investment Company, Xxxxxxx Xxxxx Xxxxxx Inc. and Ambac Assurance Corporation) | ||||
From this management fee, the Manager shall compensate the Money Managers as a fiduciary of the Trust.
Xx. Xxxx X. Xxxxx, President
January 1, 2005
Page 3
| B. | When a Sub-Trust holds cash, securities or other investment assets which are not treated as net assets of the Sub-Trust for the purpose of determining the net asset value per share of such Sub-Trust, the Manager may receive an additional annual fee, accrued daily at the rate of 1/365th of the fee and payable following the last day of each month, of 0.07% of the value of such assets for the exercise of investment supervision over such assets. |
If this agreement is acceptable to you, please sign below to indicate your acceptance and agreement.
Sincerely,
XXXXX XXXXXXX INVESTMENT COMPANY
| By: | /s/ Xxxx X. Xxxxxxx | |
| Xxxx X. Xxxxxxx | ||
| Treasurer and Chief Accounting Officer |
Accepted and Agreed:
| XXXXX XXXXXXX INVESTMENT MANAGEMENT COMPANY | ||
| By: | /s/ Xxxx X.Xxxxx | |
| Xxxx X. Xxxxx | ||
| President | ||
