EX-99.B(d)(1)(ii)
FEE AND EXPENSE AGREEMENT
THIS AGREEMENT is made as of this 1st day of March, 2001 among Xxxxx Fargo
Funds Trust (the "Trust"), a Delaware business trust, for itself and on behalf
of its series listed from time to time in Schedule A attached hereto
(individually referred to as the "Fund" or collectively referred to as the
"Funds"), Xxxxx Fargo Core Trust, a Delaware business trust, and Xxxxx Fargo
Funds Management, LLC ("Funds Management" or the "Advisor"), a limited liability
company organized under the laws of the State of Delaware.
WHEREAS, each Trust is an open-end investment company registered under the
Investment Company Act of 1940; and
WHEREAS, Funds Management serves as investment advisor and/or administrator
to each of the Funds pursuant to an investment advisory agreement (the
"Investment Advisory Agreement") and/or an administration agreement (the
"Administration Agreement");
NOW, THEREFORE, in consideration of the mutual covenants herein contained
and other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties hereto agree as follows:
1. Limitation on Total Operating Expense Ratios. The Advisor hereby agrees
--------------------------------------------
TO waive any advisory fees payable to it under the Investment Advisory
Agreement, waive any administration fees payable to it under the Administration
Agreement, and/or reimburse other expenses of the Funds or a class to the extent
necessary to maintain a total operating expense ratio for each class of each
Fund that does not exceed its capped operating expense ratio (each, a "Capped
Operating Expense Ratio") as set forth from time to time in Schedule A attached
hereto (each, a "Commitment").
2. Application of the Commitments to Tiered Funds. A Fund that invests in
----------------------------------------------
shares of a money market Fund need not attribute the money market Fund's fees to
the investing Fund's operating expenses. A non-WealthBuilder Fund that invests
in shares of a Xxxxx Fargo Core Trust portfolio or in shares of a non-money
market Fund shall attribute the portfolio's or non-money market Fund's fees to
the investing Fund's operating expenses. A WealthBuilder Fund that invests in
shares of a Xxxxx Fargo Core Trust portfolio or in shares of a non-money market
Fund need not attribute the portfolio's or non-money market Fund's fees to the
investing Fund's operating expenses.
3. Duration of the Commitments.
----------------------------
(a) Initial Waiver. The parties agree that Funds Management will
--------------
maintain the Capped Operating Expense Ratios until the expiration/renewal
date specified in Schedule A (the "Expiration/Renewal Date").
(b) Automatic Renewal of the Commitments. The parties agree that each
------------------------------------
Commitment will renew automatically for a period of one year from each
anniversary of the Expiration/Renewal Date
1
unless, prior to such anniversary date: (i) Funds Management provides notice to
the Board of Trustees to the effect that it has elected not to renew a
Commitment for a full year with respect to one or more specified Funds or
classes; (ii) Funds Management provides notice to the Board of Trustees to the
effect that it has elected to reduce a listed Capped Operating Expense Ratio
with respect to one or more specified Funds or classes; and/or (iii) the Board
of Trustees approves an increase to the listed Capped Operating Expense Ratio
with respect to one or more specified Funds or classes. The notice referred to
in subparagraphs (i) and (ii), above, or in subparagraph (i) of Subsection 3(c),
may take the form of presentation materials delivered to the Board of Trustees
at or before a meeting of the Board, a presentation to the Board of Trustees at
a meeting that is reflected in the minutes of such meeting, or written notice
delivered to the Board of Trustees.
(c) Funds Management's Obligations Following Non-Renewal of a Commitment.
--------------------------------------------------------------------
Following any non-renewal of a Commitment with respect to one or more specified
Funds or classes pursuant to Subsection 3(b), Funds Management will nevertheless
maintain the listed Capped Operating Expense Ratio of the Fund or class until
such time as: (i) Funds Management provides notice to the Board of Trustees that
it is reinstating the Commitment with respect to the Fund or class at the same
or a reduced Capped Operating Expense Ratio, in which case the provisions of
Subsection 3(b) shall govern thereafter; (ii) the Board of Trustees approves an
increase in the listed Capped Operating Expense Ratio, in which case the
provisions of Subsection 3(d) shall govern; or (iii) the Board of Trustees
approves the elimination of any obligation to maintain a specified ratio.
(d) Board Approval of an Increase in a Capped Operating Expense Ratio. If
-----------------------------------------------------------------
the Board approves an increase in the listed Capped Operating Expense Ratio of a
Fund or class, Funds Management's Commitment to maintain the higher Capped
Operating Expenses Ratio will be governed by the renewal and non-renewal
provisions of Subsection 3(b).
4. Modification; Amendment. No modification or amendment to this
-----------------------
Agreement shall be binding unless in writing and executed by Funds Management,
the Trust and, if affected thereby, Xxxxx Fargo Core Trust. Notwithstanding the
foregoing, the parties hereby agree that the Schedules may be amended or
supplemented by having Xxxxx Fargo, the Trust and, if affected thereby, Xxxxx
Fargo Core Trust execute updated Schedules, without having such action
constitute a modification or amendment to this Agreement. Among other matters,
the parties intend that: (a) Schedule A shall be updated to reflect any
additional Funds or classes that are established from time to time by the Trust
and as to which a Capped Operating Expense Ratio is established; (b) Schedule A
shall be updated to reflect any increases to Capped Operating Expense Ratios
that have been approved by the Board of Trustees or any reductions in Capped
Operating Expense Ratios that have been implemented pursuant to the notice
provisions of Subsections 3(b) or 3(c); and (c) Schedule A shall designate any
Funds or classes as to which a Commitment has not been renewed until (i) a
Commitment is reinstated pursuant to Subsection 3(c) or 3(d), or (ii) the Board
of Trustees approves the elimination of any obligation to maintain a specified
ratio, at which time such Fund or class shall be moved to Schedule B.
5. Entire Agreement. This Agreement supersedes the Amended and Restated
----------------
FEE and Expense Agreement among Xxxxx Fargo Funds Trust, Xxxxx Fargo Core Trust
and Xxxxx Fargo Bank, N.A. dated December 18, 2000, which amended and restated a
similar agreement dated November 9, 1999, as amended May 9, 2000 and July 25,
2000. This Agreement constitutes the entire agreement of the parties with
respect to its subject matter. Each provision herein shall be treated as
separate and
2
independent from any other provision or agreement herein and shall
be enforceable notwithstanding the unenforceability of any such other provision
or agreement. In addition, each provision herein shall be treated as separate
and independent with respect to each Fund.
IN WITNESS WHEREOF, the parties have duly executed this Agreement as of
March 1, 2001.
XXXXX FARGO FUNDS TRUST, for itself and on behalf XXXXX FARGO FUNDS MANAGEMENT, LLC
of its series listed from time to time on the
Schedules attached hereto
By /s/ C. Xxxxx Xxxxxxx By /s/ Xxxxxx Xxxx
________________________ ___________________________
C. Xxxxx Xxxxxxx Xxxxxx Xxxx
Secretary Vice President
XXXXX FARGO CORE TRUST
By /s/ C. Xxxxx Xxxxxxx
_________________________
C. Xxxxx Xxxxxxx
Secretary
3
SCHEDULE A
As of February 6, 2001
XXXXX FARGO FUNDS TRUST
Capped Operating Expense Ratios
Name of Fund/Class Capped Operating Expiration/Renewal Date
Expense Ratio
--------------------------------------------------------------------------------------------------------
Aggressive Balanced-Equity
Class I 1.00% January 31
--------------------------------------------------------------------------------------------------------
Arizona Tax-Free
Class A 0.77% October 31
Class B 1.52% October 31
Class I 0.60% October 31
--------------------------------------------------------------------------------------------------------
Asset Allocation
Class A 0.99% January 31*
Class B 1.74% January 31*
Class C 1.74% January 31*
Class I 1.00% January 31*
--------------------------------------------------------------------------------------------------------
California Tax-Free
Class A 0.77% October 31
Class B 1.52% October 31
Class C 1.52% October 31
Class I 0.60% October 31
--------------------------------------------------------------------------------------------------------
California Limited Term Tax-Free
Class A 0.75% October 31
Class I 0.60% October 31
--------------------------------------------------------------------------------------------------------
California Tax-Free Money Market Fund
Class A 0.65% July 31
Service Class 0.45% July 31
--------------------------------------------------------------------------------------------------------
California Tax-Free Money Market Trust 0.20% July 31
--------------------------------------------------------------------------------------------------------
Cash Investment Money Market Fund
Class Service/Admin. 0.48% July 31
Class I 0.25% July 31
--------------------------------------------------------------------------------------------------------
Colorado Tax-Free
Class A 0.60% October 31
Class B 1.35% October 31
Class I 0.60% October 31
--------------------------------------------------------------------------------------------------------
------------------
* Initial Commitment extends to November 8, 2001. Thereafter, the Expiration/
Renewal Date is January 31.
A-1
--------------------------------------------------------------------------------------------------------
Corporate Bond Fund
Class A 1.00% September 30
Class B 1.75% September 30
Class C 1.75% September 30
--------------------------------------------------------------------------------------------------------
Disciplined Growth 1.00% January 31
--------------------------------------------------------------------------------------------------------
Diversified Bond
Class I 0.70% September 30
--------------------------------------------------------------------------------------------------------
Diversified Equity Fund
Class A 1.25% January 31
Class B 2.00% January 31
Class C 2.00% January 31
Class I 1.00% January 31
--------------------------------------------------------------------------------------------------------
Diversified Small Cap
Class A 1.40% January 31
Class B 2.15% January 31
Class I 1.20% January 31
--------------------------------------------------------------------------------------------------------
Equity Income
Class A 1.10% January 31**
Class B 1.85% January 31**
Class C 1.85% January 31**
Class I 0.85% January 31**
--------------------------------------------------------------------------------------------------------
Equity Index
Class A 0.67% January 31
Class B 1.41% January 31
Class O 0.50% January 31
--------------------------------------------------------------------------------------------------------
Equity Value
Class A 1.18% January 31
Class B 1.93% January 31
Class C 1.93% January 31
Class I 1.00% January 31
--------------------------------------------------------------------------------------------------------
Government Money Market
Class A 0.75% July 31
Class Service 0.50% July 31
--------------------------------------------------------------------------------------------------------
Growth
Class A 1.12% January 31
Class B 1.87% January 31
Class I 0.75% January 31
--------------------------------------------------------------------------------------------------------
----------
** Initial Commitment extends to November 8, 2001. Thereafter, the
Expiration/Renewal Date is January 31.
A-2
--------------------------------------------------------------------------------------------------------
Growth Balanced
Class A 1.15% January 31
Class B 1.90% January 31
Class C 1.90% January 31
Class I 0.93% January 31
--------------------------------------------------------------------------------------------------------
Growth Equity
Class A 1.50% January 31
Class B 2.25% January 31
Class C 2.25% January 31
Class I 1.25% January 31
--------------------------------------------------------------------------------------------------------
Income
Class A 1.00% September 30
Class B 1.75% September 30
Class I 0.75% September 30
--------------------------------------------------------------------------------------------------------
Income Plus
Class A 1.10% September 30
Class B 1.85% September 30
Class C 1.85% September 30
--------------------------------------------------------------------------------------------------------
Index
Class I 0.25% January 31
--------------------------------------------------------------------------------------------------------
Index Allocation
Class A 1.30% January 31
Class B 2.05% January 31
Class C 2.05% January 31
--------------------------------------------------------------------------------------------------------
Intermediate Government Income
Class A 0.96% September 30
Class B 1.71% September 30
Class C 1.71% September 30
Class I 0.68% September 30
--------------------------------------------------------------------------------------------------------
International
Class A 1.75% January 31
Class B 2.50% January 31
Class I 1.50% January 31
--------------------------------------------------------------------------------------------------------
International Equity Fund
Class A 1.75% January 31
Class B 2.50% January 31
Class C 2.50% January 31
Class I 1.50% January 31
--------------------------------------------------------------------------------------------------------
A-3
--------------------------------------------------------------------------------------------------------
Large Company Growth Fund
Class A 1.20% January 31
Class B 1.75% January 31
Class C 1.75% January 31
Class I 1.00% January 31
--------------------------------------------------------------------------------------------------------
LifePath Opportunity Fund***
Class A 1.30% June 30
Class B 1.80% June 30
Class C 1.80% June 30
Class I 1.05% June 30
--------------------------------------------------------------------------------------------------------
LifePath 2010 Fund***
Class A 1.30% June 30
Class B 1.80% June 30
Class C 1.80% June 30
Class I 1.05% June 30
--------------------------------------------------------------------------------------------------------
LifePath 2020 Fund***
Class A 1.30% June 30
Class B 1.80% June 30
Class C 1.80% June 30
Class I 1.05% June 30
--------------------------------------------------------------------------------------------------------
LifePath 2030 Fund***
Class A 1.30% June 30
Class B 1.80% June 30
Class C 1.80% June 30
Class I 1.05% June 30
--------------------------------------------------------------------------------------------------------
LifePath 2040 Fund***
Class A 1.30% June 30
Class B 1.80% June 30
Class C 1.80% June 30
Class I 1.05% June 30
--------------------------------------------------------------------------------------------------------
Limited Term Government Income
Class A 0.96% September 30
Class B 1.71% September 30
Class I 0.68% September 30
--------------------------------------------------------------------------------------------------------
--------------------
*** The Board has approved extending the fee waivers of the Class B and C shares
of each LifePath Fund until June 30, 2003 if shareholders approve advisory
arrangements that would increase the net operating expense ratios of the Class B
and Class C shares to 1.95% after June 30, 2002, as to be described in a proxy
that is planned to be mailed in March 2001.
A-4
--------------------------------------------------------------------------------------------------------
Mid Cap Growth Fund
Class A 1.40% January 31
Class B 2.15% January 31
Class C 2.15% January 31
--------------------------------------------------------------------------------------------------------
Minnesota Intermediate Tax-Free
Class I 0.60% October 31
--------------------------------------------------------------------------------------------------------
Minnesota Tax-Free
Class A 0.60% October 31
Class B 1.35% October 31
Class I 0.60% October 31
--------------------------------------------------------------------------------------------------------
Moderate Balanced
Class I 0.88% January 31
--------------------------------------------------------------------------------------------------------
Money Market Fund
Class A 0.76% July 31
Class S/B 1.51% July 31
--------------------------------------------------------------------------------------------------------
Money Market Trust 0.20% July 31
--------------------------------------------------------------------------------------------------------
National Tax-Free
Class A 0.80% October 31
Class B 1.55% October 31
Class C 1.55% October 31
Class I 0.60% October 31
--------------------------------------------------------------------------------------------------------
National Limited Term Tax-Free
Class I 0.60% October 31
--------------------------------------------------------------------------------------------------------
National Tax-Free Money Market
Class A 0.65% July 31
--------------------------------------------------------------------------------------------------------
National Tax-Free Institutional Money Market
Class Service 0.45% July 31
Class I 0.30% July 31
--------------------------------------------------------------------------------------------------------
National Tax-Free Money Market Trust 0.20% July 31
--------------------------------------------------------------------------------------------------------
Nebraska Tax-Free Fund
Class I 0.83% October 31**
--------------------------------------------------------------------------------------------------------
Oregon Tax-Free
Class A 0.77% October 31
Class B 1.52% October 31
Class I 0.60% October 31
--------------------------------------------------------------------------------------------------------
OTC Growth Fund
Class O 1.30% January 31
--------------------------------------------------------------------------------------------------------
Overland Express Sweep Fund 1.25% July 31
--------------------------------------------------------------------------------------------------------
-------------------
** Initial Commitment extends to November 8, 2001. Thereafter, the
Expiration//Renewal Date is January 31.
A-5
--------------------------------------------------------------------------------------------------------
Prime Investment Money Market
Class Service 0.55% July 31
--------------------------------------------------------------------------------------------------------
Small Cap Opportunities
Class A 1.40% January 31
Class B 2.15% January 31
Class I 1.25% January 31
--------------------------------------------------------------------------------------------------------
Small Cap Growth
Class A 1.40% January 31
Class B 2.15% January 31
Class C 2.15% January 31
Class I 1.20% January 31
--------------------------------------------------------------------------------------------------------
Small Cap Value
Class I 1.25% January 31
--------------------------------------------------------------------------------------------------------
Small Company Growth
Class I 1.25% January 31
--------------------------------------------------------------------------------------------------------
Specialized Health Sciences Fund
Class A 1.65% January 31
Class B 2.40% January 31
Class C 2.40% January 31
--------------------------------------------------------------------------------------------------------
Specialized Technology Fund
Class A 1.75% January 31
Class B 2.15% January 31
Class C 2.15% January 31
--------------------------------------------------------------------------------------------------------
Stable Income
Class A 0.90% September 30
Class B 1.65% September 30
Class I 0.65% September 30
--------------------------------------------------------------------------------------------------------
Strategic Income
Class I 0.80% January 31
--------------------------------------------------------------------------------------------------------
Treasury Plus Money Market
Class A 0.65% July 31
--------------------------------------------------------------------------------------------------------
Treasury Plus Institutional Money Market
Class Service 0.46% July 31
Class I 0.25% July 31
--------------------------------------------------------------------------------------------------------
Variable Rate Government
Class A 0.78% September 30
--------------------------------------------------------------------------------------------------------
WealthBuilder Growth 1.25% September 30
--------------------------------------------------------------------------------------------------------
WealthBuilder Growth & Income 1.25% September 30
--------------------------------------------------------------------------------------------------------
WealthBuilder Growth Balanced 1.25% September 30
--------------------------------------------------------------------------------------------------------
A-6
--------------------------------------------------------------------------------------------------------
100% Treasury Money Market Fund
Class A 0.65% July 31
Service Class 0.46% July 31
--------------------------------------------------------------------------------------------------------
A-7
Schedule B
As of February 6, 2001
XXXXX FARGO FUNDS TRUST
Not Subject to Capped Operating Expense Ratios
Name of Fund/Class Date of Removal
from Schedule A
--------------------------------------------------------------------------
B-1
