SUB-ADVISORY AGREEMENT
SUB-ADVISORY AGREEMENT (the "Agreement") made as of this 13th day of April, 2007
by and between ABERDEEN ASSET MANAGEMENT, INC. a Delaware corporation with its
principal place of business at 0000 Xxxxxx Xxxxxx, 00xx Xxxxx, Xxxxxxxxxxxx, XX
00000 (the "Adviser"), and ABERDEEN ASSET MANAGEMENT INVESTMENT SERVICE, LTD. a
United Kingdom limited company with its principal place of business at Xxx Xxx
Xxxxxx Xxxx, Xxxxxx, Xxxxxxx (the "Sub-Adviser").
W I T N E S S E T H
WHEREAS, pursuant to authority granted to the Adviser by the Board of
Trustees (the "Board") of THE ADVISORS' INNER CIRCLE FUND II (the "Trust") on
behalf of the series set forth on Schedule A to this agreement and pursuant to
the provisions of the Investment Advisory Agreement dated as of April 13, 2007
between the Adviser and the Funds (the "Management Agreement"), the Adviser has
selected the Sub-Adviser to act as sub-investment adviser of the Funds and to
provide certain related services, as more fully set forth below, and to perform
such services under the terms and conditions hereinafter set forth;
NOW, THEREFORE, in consideration of the mutual covenants and benefits
set forth herein, the Adviser and the Sub-Adviser do hereby agree as follows:
1. THE SUB-ADVISER'S SERVICES.
(a) DISCRETIONARY INVESTMENT MANAGEMENT SERVICES. The
Sub-Adviser shall act as sub-investment adviser with respect to the
Funds. In such capacity, the Sub-Adviser shall, subject to the
supervision of the Adviser and the Board, regularly provide the Fund
with investment research, advice and supervision and shall furnish
continuously an investment program for such Fund assets as may be
allocated by the Adviser to the Sub-Adviser for purposes of investing
Fund assets in emerging market debt securities and currency, consistent
with the investment objectives and policies of the Fund. The
Sub-Adviser shall determine, from time to time, what investments shall
be purchased for the Fund and what such securities shall be held or
sold by the Fund, subject always to the provisions of the Trust's
Agreement and Declaration of Trust, By-Laws and its registration
statement on Form N-1A (the "Registration Statement") under the
Investment Company Act of 1940, as amended (the "1940 Act"), and under
the Securities Act of 1933, as amended (the "1933 Act"), covering Fund
shares, as filed with the Securities and Exchange Commission (the
"Commission"), and to the investment objectives, policies and
restrictions of the Fund, as each of the same shall be from time to
time in effect. To carry out such obligations, the Sub-Adviser shall
exercise full discretion and act for the Fund in the same manner and
with the same force and effect as the Fund itself might or could do
with respect to purchases, sales or other transactions. Notwithstanding
the foregoing, the Sub-Adviser shall, upon written instructions from
the Adviser, effect such portfolio transactions for the Fund as the
Adviser may from time to time direct; provided however, that the
Sub-Adviser shall not be responsible for any such portfolio
transactions effected upon written instructions from the Adviser. No
reference in this Agreement
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to the Sub-Adviser having full discretionary authority over the Fund's
investments shall in any way limit the right of the Adviser, in its
sole discretion, to establish or revise policies in connection with the
management of the Fund's assets or to otherwise exercise its right to
control the overall management of the Fund's assets.
(b) COMPLIANCE. The Sub-Adviser agrees to comply with the
requirements of the 1940 Act, the Investment Advisers Act of 1940, as
amended (the "Advisers Act"), the 1933 Act, the Securities Exchange Act
of 1934, as amended (the "1934 Act"), the Commodity Exchange Act and
the respective rules and regulations thereunder, as applicable, as well
as with all other applicable federal and state laws, rules, regulations
and case law that relate to the services and relationships described
hereunder and to the conduct of its business as a registered investment
adviser. The Sub-Adviser also agrees to comply with the objectives,
policies and restrictions set forth in the Registration Statement, as
amended or supplemented, of the Funds, and with any policies,
guidelines, instructions and procedures approved by the Board or the
Adviser and provided to the Sub-Adviser. In selecting each Fund's
portfolio securities and performing the Sub-Adviser's obligations
hereunder, the Sub-Adviser shall cause the Funds to comply with the
diversification and source of income requirements of Subchapter M of
the Internal Revenue Code of 1986, as amended (the "Code"), for
qualification as a regulated investment company. The Sub-Adviser shall
maintain compliance procedures that it reasonably believes are adequate
to ensure the compliance with the foregoing. No supervisory activity
undertaken by the Adviser shall limit the Sub-Adviser's full
responsibility for any of the foregoing.
(c) PROXY VOTING. Pursuant to Board authority, the Adviser has
the authority to determine how proxies with respect to securities that
are held by the Funds shall be voted, and the Adviser has determined to
delegate the authority and responsibility to vote proxies for each
Fund's securities to the Sub-Adviser. So long as proxy voting authority
for the Funds has been delegated to the Sub-Adviser, the Sub-Adviser
shall provide such assistance to the Adviser with respect to the voting
of proxies for the Funds as the Adviser may from time to time
reasonably request, and the Sub-Adviser shall promptly forward to the
Adviser any information or documents necessary for the Adviser to
exercise its proxy voting responsibilities. The Sub-Adviser shall not
vote proxies with respect to the securities held by the Funds unless
and until the Board or the Adviser delegates such authority and
responsibility to the Sub-Adviser or otherwise instructs the
Sub-Adviser to do so in writing, whereupon the Sub-Adviser shall carry
out such responsibility in accordance with any instructions that the
Board or the Adviser shall provide from time to time and shall provide
such reports and keep such records relating to proxy voting as the
Board may reasonably request or as may be necessary for the Funds to
comply with the 1940 Act and other applicable law. Any such delegation
of proxy voting responsibility to the Sub-Adviser may be revoked or
modified by the Board or the Adviser at any time.
(d) RECORDKEEPING. The Sub-Adviser shall not be responsible
for the provision of administrative, bookkeeping or accounting services
to the Funds, except as
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otherwise provided herein or as may be necessary for the Sub-Adviser to
supply to the Adviser, the Funds or its Board the information required
to be supplied under this Agreement.
The Sub-Adviser shall maintain separate books and detailed
records of all matters pertaining to each Fund's assets advised by the
Sub-Adviser required by Rule 31a-1 under the 1940 Act (other than those
records being maintained by the Advisor, custodian or transfer agent
appointed by the Funds) relating to its responsibilities provided
hereunder with respect to the Funds, and shall preserve such records
for the periods and in a manner prescribed therefore by Rule 31a-2
under the 1940 Act (the "Fund Books and Records"). The Fund Books and
Records shall be available to the Adviser and the Board at any time
upon request shall be delivered to the Funds upon the termination of
this Agreement and shall be available for telecopying without delay
during any day the Funds are open for business.
(e) HOLDINGS INFORMATION AND PRICING. The Sub-Adviser shall
provide regular reports regarding each Fund's holdings, and shall, on
its own initiative, furnish each Fund and the Adviser from time to time
with whatever information the Sub-Adviser believes is appropriate for
this purpose. The Sub-Adviser agrees to immediately notify the Adviser
if the Sub-Adviser reasonably believes that the value of any security
held by a Fund may not reflect fair value. The Sub-Adviser agrees to
provide any pricing information of which the Sub-Adviser is aware to
the Adviser and/or any Fund pricing agent to assist in the
determination of the fair value of any Fund holdings for which market
quotations are not readily available or as otherwise required in
accordance with the 1940 Act or the Funds valuation procedures for the
purpose of calculating the Fund's net asset value in accordance with
procedures and methods established by the Board.
(f) COOPERATION WITH AGENTS OF THE ADVISER AND THE FUNDS. The
Sub-Adviser agrees to cooperate with and provide reasonable assistance
to the Adviser, the Funds and the Funds' custodian and foreign
sub-custodians, the Funds' pricing agents and all other agents and
representatives of the Funds and the Adviser, such information with
respect to the Funds as such entities may reasonably request from time
to time in the performance of their obligations, provide prompt
responses to reasonable requests made by such persons and establish
appropriate interfaces with each so as to promote the efficient
exchange of information and compliance with applicable laws and
regulations.
2. CODE OF ETHICS. The Sub-Adviser has adopted a written code of
ethics that it reasonably believes complies with the requirements of Rule 17j-1
under the 1940 Act, which it will provide to the Adviser and the Funds. The
Sub-Adviser shall ensure that its Access Persons (as defined in the
Sub-Adviser's Code of Ethics) comply in all material respects with the
Sub-Adviser's Code of Ethics, as in effect from time to time. Upon request, the
Sub-Adviser shall provide the Funds with (i) a copy of the Sub-Adviser's current
Code of Ethics, as in effect from time to time, and (ii) a certification that it
has adopted procedures reasonably necessary to prevent Access Persons from
engaging in any conduct prohibited by the Sub-Adviser's Code of Ethics.
Annually, the Sub-Adviser shall furnish a written report, which complies with
the
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requirements of Rule 17j-1, concerning the Sub-Adviser's Code of Ethics to the
Funds and the Adviser. The Sub-Adviser shall respond to requests for information
from the Adviser as to violations of the Code by Access Persons and the
sanctions imposed by the Sub-Adviser. The Sub-Adviser shall immediately notify
the Adviser of any material violation of the Code, whether or not such violation
relates to a security held by any Fund.
3. INFORMATION AND REPORTING. The Sub-Adviser shall provide the
Funds, the Adviser, and their respective officers with such periodic reports
concerning the obligations the Sub-Adviser has assumed under this Agreement as
the Funds and the Adviser may from time to time reasonably request.
(a) NOTIFICATION OF BREACH / COMPLIANCE REPORTS. The
Sub-Adviser shall notify the Trust's Chief Compliance Officer and
Adviser immediately upon detection of (i) any material failure to
manage any Fund in accordance with its investment objectives and
policies or any applicable law; or (ii) any material breach of any of
the Funds' or the Adviser's policies, guidelines or procedures. In
addition, the Sub-Adviser shall provide a quarterly report regarding
each Fund's compliance with its investment objectives and policies and
applicable law, including, but not limited to the 1940 Act and
Subchapter M of the Code, and the Funds' and the Adviser's policies,
guidelines or procedures as applicable to the Sub-Adviser's obligations
under this Agreement. The Sub-Adviser acknowledges and agrees that the
Adviser may, in its discretion, provide such quarterly compliance
certifications to the Board. The Sub-Adviser agrees to correct any such
failure promptly and to take any action that the Board and/or the
Adviser may reasonably request in connection with any such breach. The
Sub-Adviser shall also provide the officers of the Trust with
supporting certifications in connection with such certifications of
Fund financial statements and disclosure controls pursuant to the
Xxxxxxxx-Xxxxx Act. The Sub-Adviser will promptly notify the Trust in
the event (i) the Sub-Adviser is served or otherwise receives notice of
any action, suit, proceeding, inquiry or investigation, at law or in
equity, before or by any court, public board, or body, involving the
affairs of the Trust (excluding class action suits in which a Fund is a
member of the plaintiff class by reason of the Fund's ownership of
shares in the defendant) or the compliance by the Sub-Adviser with the
federal or state securities laws or (ii) the controlling stockholder of
the Sub-Adviser changes or an actual change in control resulting in an
"assignment" (as defined in the 1940 Act) has occurred or is otherwise
proposed to occur.
(b) INSPECTION. Upon reasonable request, the Sub-Adviser
agrees to make its records and premises (including the availability of
the Sub-Adviser's employees for interviews) to the extent that they
relate to the conduct of services provided to the Funds or the Sub-
Adviser's conduct of its business as an investment adviser reasonably
available for compliance audits by the Adviser or a Fund's employees,
accountants or counsel; in this regard, the Funds and the Adviser
acknowledge that the Sub-Adviser shall have no obligations to make
available proprietary information unrelated to the services provided to
the Funds or any information related to other clients of the
Sub-Adviser, except to the extent necessary for the Adviser to confirm
the absence of any conflict of interest and compliance with any laws,
rules or regulations in the management of the Funds.
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(c) BOARD AND FILINGS INFORMATION. The Sub-Adviser will also
provide the Adviser with any information reasonably requested regarding
its management of the Funds required for any meeting of the Board, or
for any shareholder report, amended registration statement, proxy
statement, or prospectus supplement to be filed by the Funds with the
Commission. The Sub-Adviser will make its officers and employees
available to meet with the Board from time to time on due notice to
review its investment management services to the Funds in light of
current and prospective economic and market conditions and shall
furnish to the Board such information as may reasonably be necessary in
order for the Board to evaluate this Agreement or any proposed
amendments thereto.
(d) TRANSACTION INFORMATION. The Sub-Adviser shall furnish to
the Adviser such information concerning portfolio transactions as may
be necessary to enable the Adviser to perform such compliance testing
on the Funds and the Sub-Adviser's services as the Adviser may, in its
sole discretion, determine to be appropriate. The provision of such
information by the Sub-Adviser in no way relieves the Sub-Adviser of
its own responsibilities under this Agreement.
4. BROKERAGE.
(a) PRINCIPAL TRANSACTIONS. In connection with purchases or
sales of securities for the account of a Fund, neither the Sub-Adviser
nor any of its directors, officers or employees will act as a principal
or agent or receive any commission except as permitted by the 1940 Act.
(b) PLACEMENT OF ORDERS. The Sub-Adviser shall arrange for the
placing of all orders for the purchase and sale of securities for a
Fund's account with brokers or dealers selected by the Sub-Adviser. In
the selection of such brokers or dealers and the placing of such
orders, the Sub-Adviser is directed at all times to seek for a Fund the
most favorable execution and net price available under the
circumstances. It is also understood that it is desirable for the Funds
that the Sub-Adviser have access to brokerage and research services
provided by brokers who may execute brokerage transactions at a higher
cost to the Funds than may result when allocating brokerage to other
brokers, consistent with section 28(e) of the 1934 Act and any
Commission staff interpretations thereof. Therefore, the Sub-Adviser is
authorized to place orders for the purchase and sale of securities for
the Funds with such brokers, subject to review by the Adviser and the
Board from time to time with respect to the extent and continuation of
this practice. It is understood that the services provided by such
brokers may be useful to the Sub-Adviser in connection with its or its
affiliates' services to other clients.
(c) AGGREGATED TRANSACTIONS. On occasions when the Sub-Adviser
deems the purchase or sale of a security to be in the best interest of
a Fund as well as other clients of the Sub-Adviser, the Sub-Adviser
may, to the extent permitted by applicable law and regulations,
aggregate the order for securities to be sold or purchased. In such
event, the Sub-Adviser will allocate securities or futures contracts so
purchased or sold, as well as
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the expenses incurred in the transaction, in the manner the Sub-Adviser
reasonably considers to be equitable and consistent with its fiduciary
obligations to a Fund and to such other clients under the
circumstances.
(d) AFFILIATED BROKERS. The Sub-Adviser or any of its
affiliates may act as broker in connection with the purchase or sale of
securities or other investments for a Fund, subject to: (a) the
requirement that the Sub-Adviser seek to obtain best execution and
price within the policy guidelines determined by the Board and set
forth in a Fund's current prospectus and SAI; (b) the provisions of the
1940 Act; (c) the provisions of the 1934 Act; and (d) other provisions
of applicable law. These brokerage services are not within the scope of
the duties of the Sub-Adviser under this Agreement. Subject to the
requirements of applicable law and any procedures adopted by the Board,
the Sub-Adviser or its affiliates may receive brokerage commissions,
fees or other remuneration from a Fund for these services in addition
to the Sub-Adviser's fees for services under this Agreement.
5. CUSTODY. Nothing in this Agreement shall permit the Sub-
Adviser to take or receive physical possession of cash, securities or other
investments of a Fund.
6. ALLOCATION OF CHARGES AND EXPENSES. The Sub-Adviser will bear
its own costs of providing services hereunder. Other than as herein specifically
indicated, the Sub-Adviser shall not be responsible for a Fund's or the
Adviser's expenses, including brokerage and other expenses incurred in placing
orders for the purchase and sale of securities and other investment instruments.
7. REPRESENTATIONS, WARRANTIES AND COVENANTS.
(a) PROPERLY REGISTERED. The Sub-Adviser is registered as an
investment adviser under the Advisers Act, and will remain so
registered for the duration of this Agreement. The Sub-Adviser is not
prohibited by the Advisers Act or the 1940 Act from performing the
services contemplated by this Agreement, and to the best knowledge of
the Sub-Adviser, there is no proceeding or investigation that is
reasonably likely to result in the Sub-Adviser being prohibited from
performing the services contemplated by this Agreement. The Sub-Adviser
agrees to promptly notify the Trust of the occurrence of any event that
would disqualify the Sub-Adviser from serving as an investment adviser
to an investment company. The Sub-Adviser is in compliance in all
material respects with all applicable federal and state law in
connection with its investment management operations.
(b) ADV DISCLOSURE. The Sub-Adviser has provided the Trust
with a copy of its Form ADV as most recently filed with the SEC and
will, promptly after filing any amendment to its Form ADV with the SEC,
furnish a copy of such amendments to the Trust. The information
contained in the Adviser's Form ADV is accurate and complete in all
material respects and does not omit to state any material fact
necessary in order to make the statements made, in light of the
circumstances under which they were made, not misleading.
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(c) FUND DISCLOSURE DOCUMENTS. The Sub-Adviser has reviewed
and will in the future review, the Registration Statement, and any
amendments or supplements thereto, the annual or semi-annual reports to
shareholders, other reports filed with the Commission and any marketing
material of a Fund (collectively the "Disclosure Documents") and
represents and warrants that with respect to disclosure about the
Sub-Adviser, the manner in which the Sub-Adviser manages the Fund or
information relating directly or indirectly to the Sub-Adviser, such
Disclosure Documents contain or will contain, as of the date thereof,
no untrue statement of any material fact and does not omit any
statement of material fact which was required to be stated therein or
necessary to make the statements contained therein not misleading.
(d) USE OF THE NAME "ABERDEEN". The Sub-Adviser has the right
to use the names "Aberdeen" in connection with its services to the
Trust and that, subject to the terms set forth in Section 8 of this
Agreement, the Trust shall have the right to use the name "Aberdeen" in
connection with the management and operation of the Funds. The
Sub-Adviser is not aware of any threatened or existing actions, claims,
litigation or proceedings that would adversely effect or prejudice the
rights of the Sub-Adviser or the Trust to use the name "Aberdeen."
(e) INSURANCE. The Sub-Adviser maintains errors and omissions
insurance coverage in an appropriate amount and shall provide prior
written notice to the Trust (i) of any material changes in its
insurance policies or insurance coverage; or (ii) if any material
claims will be made on its insurance policies. Furthermore, the
Sub-Adviser shall, upon reasonable request, provide the Trust with any
information it may reasonably require concerning the amount of or scope
of such insurance.
(f) NO DETRIMENTAL AGREEMENT. The Sub-Adviser represents and
warrants that it has no arrangement or understanding with any party,
other than the Trust, that would influence the decision of the
Sub-Adviser with respect to its selection of securities for a Fund, and
that all selections shall be done in accordance with what is in the
best interest of the Fund.
(g) CONFLICTS. The Sub-Adviser shall act honestly, in good
faith and in the best interests of the Trust including requiring any of
its personnel with knowledge of Fund activities to place the interest
of the Fund first, ahead of their own interests, in all personal
trading scenarios that may involve a conflict of interest with the
Funds, consistent with its fiduciary duties under applicable law.
(h) REPRESENTATIONS. The representations and warranties in
this Section 7 shall be deemed to be made on the date this Agreement is
executed and at the time of delivery of the quarterly compliance report
required by Section 3(a), whether or not specifically referenced in
such report.
8. THE NAME "ABERDEEN". The Sub-Adviser grants to the Trust a
license to use the name "Aberdeen" as part of the name of each Fund. The Adviser
and the Funds shall be obligated to use the name Aberdeen in the name of each
Fund during the period in which this
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Agreement remains in effect or the Sub-Adviser otherwise acts as sub-investment
adviser for the Funds, except as agreed to by Aberdeen. The foregoing
authorization by the Sub-Adviser to the Funds to use said name as part of the
name of each Fund is not exclusive of the right of the Sub-Adviser itself to
use, or to authorize others to use, the same; the Funds acknowledge and agrees
that as between the Funds and the Sub-Adviser, the Sub-Adviser has the exclusive
right so to use, or authorize others to use, said name and the Funds agree to
take such action as may reasonably be requested by the Sub-Adviser to give full
effect to the provisions of this section. Without limiting the generality of the
foregoing, the Funds agree that, upon any termination of this Agreement, the
Funds will, at the request of the Sub-Adviser, use their best efforts to change
the name of the Funds within three months of its receipt of the Sub-Adviser's
request so as to eliminate all reference, if any, to the name "Aberdeen" and
will not thereafter transact any business using the name "Aberdeen" in the name
of the Funds; provided, however, that the Funds and the Adviser may continue to
use beyond such date any supplies of prospectuses, marketing materials and
similar documents that the Adviser or its affiliates had on had at the date of
such name change.
9. SUB-ADVISER'S COMPENSATION. The Adviser shall pay to the
Sub-Adviser, as compensation for the Sub-Adviser's services hereunder, a fee,
determined as described in Schedule A that is attached hereto and made a part
hereof. Such fee shall be computed daily and paid monthly in arrears by the
Adviser. The Funds shall have no responsibility for any fee payable to the
Sub-Adviser.
The Sub-Adviser will be compensated based on the portion of Fund assets
allocated to the Sub-Adviser by the Adviser. In the event of termination of this
Agreement, the fee provided in this Section shall be computed on the basis of
the period ending on the last business day on which this Agreement is in effect
subject to a pro rata adjustment based on the number of days elapsed in the
current month as a percentage of the total number of days in such month.
10. INDEPENDENT CONTRACTOR. In the performance of its duties
hereunder, the Sub-Adviser is and shall be an independent contractor and, unless
otherwise expressly provided herein or otherwise authorized in writing, shall
have no authority to act for or represent the Funds or the Adviser in any way or
otherwise be deemed to be an agent of the Funds or the Adviser. If any occasion
should arise in which the Sub-Adviser gives any advice to its clients concerning
the shares of a Fund, the Sub-Adviser will act solely as investment counsel for
such clients and not in any way on behalf of the Funds.
11. ASSIGNMENT AND AMENDMENTS. This Agreement shall automatically
terminate, without the payment of any penalty, (i) in the event of its
assignment (as defined in section 2(a)(4) of the 0000 Xxx) or (ii) in the event
of the termination of the Management Agreement; provided that such termination
shall not relieve the Adviser or the Sub-Adviser of any liability incurred
hereunder.
This Agreement may not be added to or changed orally and may not be
modified or rescinded except by a writing signed by the parties hereto and in
accordance with the 1940 Act, when applicable.
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12. DURATION AND TERMINATION.
(a) This Agreement shall become effective as of the date
executed and shall remain in full force and effect continually
thereafter, subject to renewal as provided in Section 12(c) and unless
terminated automatically as set forth in Section 11 hereof or until
terminated as follows:
(a) The Adviser may at any time terminate this Agreement by
not more than sixty (60) days' nor less than thirty (30) days' written
notice delivered or mailed by registered mail, postage prepaid, to the
Sub-Adviser. In addition, the Funds may cause this Agreement to
terminate either (i) by vote of its Board or (ii) upon the affirmative
vote of a majority of the outstanding voting securities of the Funds;
or
(b) The Sub-Adviser may at any time terminate this Agreement
by not more than sixty (60) days' nor less than thirty (30) days'
written notice delivered or mailed by registered mail, postage prepaid,
to the Adviser; or
(c) This Agreement shall automatically terminate two years
from the date of its execution unless its renewal is specifically
approved at least annually thereafter by (i) a majority vote of the
Trustees, including a majority vote of such Trustees who are not
interested persons of the Funds, the Adviser or the Sub-Adviser, at a
meeting called for the purpose of voting on such approval; or (ii) the
vote of a majority of the outstanding voting securities of each Fund;
provided, however, that if the continuance of this Agreement is
submitted to the shareholders of the Funds for their approval and such
shareholders fail to approve such continuance of this Agreement as
provided herein, the Sub-Adviser may continue to serve hereunder as to
the Funds in a manner consistent with the 1940 Act and the rules and
regulations thereunder; and
(d) Termination of this Agreement pursuant to this Section
shall be without payment of any penalty.
In the event of termination of this Agreement for any reason,
the Sub-Adviser shall, immediately upon notice of termination or on
such later date as may be specified in such notice, cease all activity
on behalf of the Funds and with respect to any Fund assets, except as
expressly directed by the Adviser or as otherwise required by any
fiduciary duties of the Sub-Adviser under applicable law. In addition,
the Sub-Adviser shall deliver each Fund's Books and Records to the
Adviser by such means and in accordance with such schedule as the
Adviser shall direct and shall otherwise cooperate, as reasonably
directed by the Adviser, in the transition of portfolio asset
management to any successor of the Sub-Adviser, including the Adviser.
13. CERTAIN DEFINITIONS. FOR THE PURPOSES OF THIS AGREEMENT:
(a) "Affirmative vote of a majority of the outstanding voting
securities of the Fund" shall have the meaning as set forth in the 1940
Act, subject, however, to such
9
exemptions as may be granted by the Commission under the 1940 Act or
any interpretations of the Commission staff.
(b) "Interested persons" and "Assignment" shall have their
respective meanings as set forth in the 1940 Act, subject, however, to
such exemptions as may be granted by the Commission under the 1940 Act
or any interpretations of the Commission staff.
14. LIABILITY OF THE SUB-ADVISER. The Sub-Adviser shall indemnify
and hold harmless the Trust and all affiliated persons thereof (within the
meaning of Section 2(a)(3) of the 0000 Xxx) and all controlling persons (as
described in Section 15 of the 1933 Act) (collectively, the "Sub-Adviser
Indemnitees") against any and all losses, claims, damages, liabilities or
litigation (including reasonable legal and other expenses) by reason of or
arising out of: (a) the Sub-Adviser being in material violation of any
applicable federal or state law, rule or regulation or any investment policy or
restriction set forth in the Funds' Registration Statement or any written
guidelines or instruction provided in writing by the Board, (b) a Fund's failure
to satisfy the diversification or source of income requirements of Subchapter M
of the Code, or (c) the Sub-Adviser's willful misfeasance, bad faith or gross
negligence generally in the performance of its duties hereunder or its reckless
disregard of its obligations and duties under this Agreement.
15. ENFORCEABILITY. Any term or provision of this Agreement which
is invalid or unenforceable in any jurisdiction shall, as to such jurisdiction
be ineffective to the extent of such invalidity or unenforceability without
rendering invalid or unenforceable the remaining terms or provisions of this
Agreement or affecting the validity or enforceability of any of the terms or
provisions of this Agreement in any other jurisdiction.
16. LIMITATION OF LIABILITY. The parties to this Agreement
acknowledge and agree that all litigation arising hereunder, whether direct or
indirect, and of any and every nature whatsoever shall be satisfied solely out
of the assets of the affected Fund and that no Trustee, officer or holder of
shares of beneficial interest of the Fund shall be personally liable for any of
the foregoing liabilities. The Trust's Certificate of Trust, as amended from
time to time, is on file in the Office of the Secretary of State of the
Commonwealth of Massachusetts. Such Certificate of Trust and the Trust's
Agreement and Declaration of Trust describe in detail the respective
responsibilities and limitations on liability of the Trustees, officers, and
holders of shares of beneficial interest.
17. CHANGE IN THE ADVISER'S OWNERSHIP. The Sub-Adviser agrees that
it shall notify the Trust of any anticipated or otherwise reasonably foreseeable
change in the ownership of the Sub-Adviser within a reasonable time prior to
after such change being effected.
18. JURISDICTION. This Agreement shall be governed by and c
onstrued in accordance with the substantive laws of The Commonwealth of
Massachusetts and the Sub-Adviser consents to the jurisdiction of courts, both
state or federal, in Massachusetts, with respect to any dispute under this
Agreement.
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19. PARAGRAPH HEADINGS. The headings of paragraphs contained in
this Agreement are provided for convenience only, form no part of this Agreement
and shall not affect its construction.
20. COUNTERPARTS. This Agreement may be executed simultaneously
in two or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to
be signed on their behalf by their duly authorized officers as of the date first
above written.
ATTEST: ABERDEEN ASSET MANAGEMENT, INC.
/S/ XXXXXXXX X. XXXXXXX By: /S/ XXXXXX X. XXXXX
----------------------- -------------------
Name: Xxxxxx X Xxxxx
Title:Director/CFO
ATTEST: ABERDEEN ASSET MANAGEMENT
INVESTMENT SERVICE, LTD.
/S/ ILLEGIBLE SIGNATURE By: /S/ XXX XXX
----------------------- -----------
Name: Xxx Xxx
Title: Director
Accepted and Agreed to as of the day and year first above written.
11
SCHEDULE A
TO THE
SUB-ADVISORY AGREEMENT
DATED APRIL 13, 2007 BETWEEN
ABERDEEN ASSET MANAGEMENT, INC.
AND
ABERDEEN ASSET MANAGEMENT INVESTMENT SERVICE, LTD.
The Adviser will pay to the Sub-Adviser as compensation for the Sub-Adviser's
services rendered, a fee, computed daily at an annual rate based on the average
daily net assets of the respective Fund as may be allocated by the Adviser to
the Sub-Adviser from time to time under the following fee schedule:
FUND RATE
---- ----
Aberdeen Total Return Fixed Income Fund..................................0.0675%
Aberdeen Emerging Markets Fund.............................................0.36%
Aberdeen Global Equity Fund................................................0.60%
Aberdeen International Equity Fund.........................................0.60%
A-1
