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EXHIBIT (D)(XX)
GLOBAL SOCIALLY RESPONSIVE FUND
OF
THE ENTERPRISE GROUP OF FUNDS, INC.
FUND MANAGER'S AGREEMENT
THIS AGREEMENT, made the ____ day of ______, 2000 is among The
Enterprise Group of Funds, Inc. (the "Fund"), a Maryland corporation,
Enterprise Capital Management, Inc., a Georgia corporation (hereinafter
referred to as the "Adviser"), and Rockefeller & Co., Inc., a New York
corporation, (hereinafter referred to as the "Fund Manager").
BACKGROUND INFORMATION
(A) The Adviser has entered into an Investment Adviser's
Agreement with the Fund ("Investment Adviser's Agreement"). Pursuant to the
Investment Adviser's Agreement, the Adviser has agreed to render investment
advisory and certain other management services to all of the portfolios of the
Fund (the "Portfolios"), and the Fund has agreed to employ the Adviser to
render such services and to pay to the Adviser certain fees therefore. The
Investment Adviser's Agreement recognizes that the Adviser may enter into
agreements with other investment advisers who will serve as fund managers to
the Portfolios.
(B) The parties hereto wish to enter into an agreement whereby
the Fund Manager will provide to the Global Socially Responsive Fund of the
Fund (the "Global Socially Responsive Fund") securities investment advisory
services for the Global Socially Responsive Fund.
WITNESSETH THAT:
In consideration of the mutual covenants herein contained, the Fund,
Adviser and the Fund Manager agree as follows:
(1) The Fund and Adviser hereby employ the Fund Manager
to render certain investment advisory services to the Global Socially
Responsive Fund, as set forth herein. The Fund Manager hereby accepts such
employment and agrees to perform such services on the terms herein set forth,
and for the compensation herein provided.
(2) The Fund Manager shall furnish the Global Socially
Responsive Fund advice with respect to the investment and reinvestment of the
assets of the Global Socially Responsive Fund, or such portion of the assets of
the Global Socially Responsive Fund as the Adviser shall specify from time to
time, in accordance with the investment objectives, restrictions and
limitations applicable to the Global Socially Responsive Fund which are set
forth in the Fund's most recent Registration Statement.
(3) The Fund Manager shall perform a monthly
reconciliation of the Global Socially Responsive Fund to the holdings report
provided by the Fund's custodian and bring any material or significant
variances regarding holdings or valuations to the attention of the Adviser.
(4) The Fund Manager shall for all purposes herein be
deemed to be an independent contractor. The Fund Manager has no authority to
act for or represent the Fund or the Portfolios in any
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way except to direct securities transactions to brokers and dealers selected by
the Fund Manager pursuant to its investment advice hereunder. The Fund Manager
is not an agent of the Fund or the Portfolios.
(5) It is understood that the Fund Manager does not, by
this Agreement, undertake to assume or pay any costs or expenses of the Fund or
the Portfolios.
(6)(a) The Adviser agrees to pay as compensation to the
Fund Manager for its services to be furnished under this Agreement, with
respect to each calendar month after the effective date of this Agreement, on
the twentieth (20th) day after the close of each calendar month, a sum equal to
0.0375 of 1% of the average of the daily closing net asset value of the Fund
managed by the Fund Manager during such month (that is, 0.45 of 1% per year)
for the first $100,000,000 of assets under management; a sum equal to 0.0334 of
1% of the average of the daily closing net asset value of the Fund during such
month (that is, 0.40 of 1% per year) for the next $100,000,000 of assets under
management (up to $200,000,000); and a sum equal to 0.025 of 1% of the average
of the daily closing net asset value of the Fund during such month (that is,
0.30 of 1% per year) for assets in excess of $200,000,000.
(6)(b) The payment of all fees provided for hereunder
shall be prorated and reduced for sums payable for a period less than a full
month in the event of termination of this Agreement on a day that is not the
end of a calendar month.
(6)(c) For the purposes of this Paragraph 6, the daily
closing net asset values of the Portfolio shall be computed in the manner
specified in the Registration Statement for the computation of the value of
such net assets in connection with the determination of the net asset value of
the Global Socially Responsive Fund shares. A copy of the Registration
Statement has been or will be delivered to the Fund Manager.
(7) The services of the Fund Manager hereunder are
deemed to be "exclusive" as to providing Global Socially Responsive Corporate
Governance advisory management for a period of two years from the date of the
Global Socially Responsive Fund's effectiveness. The exclusive relationship
shall be extended for a third year, provided that the Global Socially
Responsive Fund's assets under management reach $250,000,000 as of the second
anniversary of the effectiveness of the Global Socially Responsive Fund.
"Exclusive" shall mean that the Fund Manager will not offer its services to
other socially responsive load, open-ended mutual funds and shall not offer its
services to other socially responsive mutual funds with a particular emphasis
on corporate governance. The Fund Manager is free to render services to others
and to engage in other activities so long as its services hereunder are not
impaired thereby. Without in any way relieving the Fund Manager of its
responsibilities hereunder, it is agreed that the Fund Manager may employ
others to furnish factual information, economic advice and/or research, and
investment recommendations, upon which its investment advice and service is
furnished hereunder.
(8) In the absence of willful misfeasance, bad faith or
gross negligence in the performance of its duties hereunder, or reckless
disregard of its obligations and duties hereunder, the Fund Manager shall not
be liable to the Fund, the Global Socially Responsive Fund or the Adviser or to
any shareholder or shareholders of the Fund, the Global Socially Responsive
Fund or the Adviser for any mistake of judgment, act or omission in the course
of, or connected with, the services to be rendered by the Fund Manager
hereunder.
(9) The Fund Manager will take necessary steps to
prevent the investment professionals of the Fund Manager who are responsible
for investing assets of the Global Socially
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Responsive Fund from taking, at any time, a short position in any shares of any
holdings of the Global Socially Responsive Fund for any accounts in which such
individuals have a beneficial interest, excluding short against-the-box
positions, effected for tax reasons. The Fund Manager also will cooperate with
the Fund in adopting a written policy prohibiting xxxxxxx xxxxxxx with respect
to Global Socially Responsive Fund transactions insofar as such transactions
may relate to the Fund Manager.
(10) In connection with the management of the investment
and reinvestment of the assets of the Global Socially Responsive Fund, the Fund
Manager is authorized to select the brokers or dealers that will execute
purchase and sale transactions for the Global Socially Responsive Fund, and is
directed to use its best efforts to obtain the best available price and most
favorable execution with respect to such purchases and sales of portfolio
securities for the Global Socially Responsive Fund. Subject to this primary
requirement, and maintaining as its first consideration the benefits for the
Global Socially Responsive Fund and its shareholders, the Fund Manager shall
have the right to follow a policy of selecting brokers and dealers who furnish
brokerage and research services (as those terms are defined in ss.28(e) of the
Securities Exchange Act of 1934) to the Global Socially Responsive Fund, the
Adviser, or the Fund Manager and, subject to the Conduct Rules of the National
Association of Securities Dealers, Inc., to select brokers and dealers who sell
shares of the Portfolios.
(11) The Fund may terminate this Agreement by thirty (30)
days written notice to the Adviser and the Fund Manager at any time, without
the payment of any penalty, by vote of the Fund's Board of Directors, or by
vote of a majority of its outstanding voting securities. The Adviser may
terminate this Agreement by thirty (30) days written notice to the Fund Manager
and the Fund Manager may terminate this Agreement by thirty (30) days written
notice to the Adviser, without the payment of any penalty. This Agreement shall
immediately terminate in the event of its assignment, unless an order is issued
by the Securities and Exchange Commission conditionally or unconditionally
exempting such assignment from the provision of Section 15 (a) of the
Investment Company Act of 1940, in which event this Agreement shall remain in
full force and effect.
(12) Subject to prior termination as provided above, this
Agreement shall continue in force from the date of execution until September
29, 2002 and from year to year thereafter if its continuance after said date:
(1) is specifically approved on or before said date and at least annually
thereafter by vote of the Board of Directors of the Fund, including a majority
of those Directors who are not parties to this Agreement or interested persons
of any such party, or by vote of a majority of the outstanding voting
securities of the Fund, and (2) is specifically approved at least annually by
the vote of a majority of Directors of the Fund who are not parties to this
Agreement or interested persons of any such party cast in person at a meeting
called for the purpose of voting on such approval.
(13) The Adviser shall indemnify and hold harmless the
Fund Manager, its officers and directors and each person, if any, who controls
the Fund Manager within the meaning of Section 15 of the Securities Act of 1933
(any and all such persons shall be referred to as "Indemnified Party"), against
any loss, liability, damage or expense (including the reasonable cost of
investigating or defending any alleged loss, liability, damages or expense and
reasonable counsel fees incurred in connection therewith), arising by reason of
any matter to which this Fund Manager's Agreement relates. However, in no case
(i) is this indemnity to be deemed to protect any particular Indemnified Party
against any liability to which such Indemnified Party would otherwise be
subject by reason of willful misfeasance, bad faith or gross negligence in the
performance of its duties or by reason of reckless disregard of its obligations
and duties under this Fund Manager's Agreement or (ii) is the Adviser to be
liable under this indemnity with respect to any claim made against any
particular Indemnified Party unless such Indemnified Party shall have notified
the Adviser in writing within a reasonable time after the summons
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or other first legal process giving information of the nature of the claim
shall have been served upon the Fund Manager or such controlling persons.
The Fund Manager shall indemnify and hold harmless
the Adviser and each of its directors and officers and each person if any who
controls the Adviser within the meaning of Section 15 of the Securities Act of
1933, against any loss, liability, damage or expense described in the foregoing
indemnity, but only with respect to the Fund Manager's willful misfeasance, bad
faith or gross negligence in the performance of its duties under this Fund
Manager's Agreement. In case any action shall be brought against the Adviser or
any person so indemnified, in respect of which indemnity may be sought against
the Fund Manager, the Fund Manager shall have the rights and duties given to
the Adviser, and the Adviser and each person so indemnified shall have the
rights and duties given to the Fund Manager by the provisions of subsection (i)
and (ii) of this Paragraph 13.
(14) Except as otherwise provided in Paragraph 13 hereof
and as may be required under applicable federal law, this Fund Manager's
Agreement shall be governed by the laws of the State of Georgia.
(15) The Fund Manager agrees to notify the parties within
a reasonable period of time regarding a material change in the membership of
the Fund Manager.
(16) The terms "vote of a majority of the outstanding
voting securities," "assignment" and "interested persons," when used herein,
shall have the respective meanings specified in the Investment Company Act of
1940 as now in effect or as hereafter amended.
(17) Unless otherwise permitted, all notices,
instructions and advice with respect to security transactions or any other
matters contemplated by this Agreement shall be deemed duly given when received
in writing:
by the Fund Manager: Rockefeller & Co., Inc.
00 Xxxxxxxxxxx Xxxxx, 00xx xxxxx
Xxx Xxxx, XX 00000
by the Adviser: Enterprise Capital Management, Inc.
0000 Xxxxxxxxx Xxxx, X.X., Xxxxx 000
Xxxxxxx, XX 00000-0000
by the Fund: The Enterprise Group of Funds, Inc. c/o Enterprise
Capital Management, Inc.
0000 Xxxxxxxxx Xxxx, X.X., Xxxxx 000
Xxxxxxx, XX 00000-0000
or by such other person or persons at such address or addresses as shall be
specified by the applicable party, in each case, in a notice similarly given.
Each party may rely upon any notice or other communication from the other
reasonably believed by it to be genuine.
(18) This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original and all of which,
when taken together, shall constitute one and the same agreement.
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(19) This Agreement constitutes the entire agreement
between the Fund Manager, the Adviser and the Fund relating to the Global
Socially Responsive Fund.
IN WITNESS WHEREOF, the parties have caused this Agreement to be
signed by their duly authorized officers and their corporate seals hereunder
duly affixed and attested, as of the date first above written.
THE ENTERPRISE GROUP OF FUNDS, INC.
(SEAL)
ATTEST: By:
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Secretary Xxxxxx Xxxxxx, Chairman, President
and Chief Executive Officer
ENTERPRISE CAPITAL MANAGEMENT, INC.
(SEAL)
ATTEST: By:
-------------------- ----------------------------------------
Secretary Xxxxxx Xxxxxx, Chairman, President
and Chief Executive Officer
ROCKEFELLER & CO., INC.
(SEAL)
ATTEST: By:
-------------------- ----------------------------------------
Secretary
Name:
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Title:
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