EXPENSE LIMITATION AGREEMENT
This EXPENSE LIMITATION AGREEMENT (the "Agreement") is effective as of
January 31, 2008 by and between Xxxxxxxxx Global Investors (North America),
Inc., a Delaware corporation (the "Adviser") and Xxxxxxxxx Global Funds (the
"Trust"), on behalf of the Xxxxxxxxx International Equity Fund and the Xxxxxxxxx
Global Real Estate Equities Fund series of the Trust (collectively, the "Funds"
and individually a "Fund").
WHEREAS, the Trust is a Delaware statutory trust, and is registered under
the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management company of the series type, and the Fund is a series of the Trust.
WHEREAS, the Trust and the Adviser have entered into an Investment Advisory
Agreement dated August 31, 2001 ("Advisory Agreement"), as amended by letter
agreements dated September 24, 2003, April 30, 2004, August 1, 2005, January 31,
2006, August 1, 2006, November 30, 2006, January 31, 2008 and February 29, 2008
pursuant to which the Adviser provides investment advisory services to the Funds
for compensation based on the value of the average daily net assets of the
Funds; and
WHEREAS, the Trust and the Adviser have determined that it is appropriate
and in the best interests of the Funds and their shareholders to maintain the
expenses of each Fund at a level below the level to which each Fund may
otherwise be subject;
NOW THEREFORE, the parties hereto agree as follows:
1. EXPENSE LIMITATION.
1.1 Applicable Expense Limit. To the extent that the ordinary operating
expenses incurred by a Fund in any fiscal year, including but not limited to
investment advisory fees of the Adviser, but excluding any distribution and
service fees under Rule 12b-1 under the 1940 Act and/or shareholder service fees
as described in the then current registration statement offering shares of the
Fund and interest, taxes, brokerage commissions, other investment-related costs
and extraordinary expenses, such as litigation and other expenses not incurred
in the ordinary course of the Fund's business ("Fund Operating Expenses"),
exceed the Operating Expense Limit, as defined in Section 1.2 below, such excess
amount (the "Excess Amount") shall be the liability of the Adviser to the extent
set forth in this Agreement.
1.2 Operating Expense Limit. The Operating Expense Limit in any year with
respect to the Xxxxxxxxx International Equity Fund shall be 1.15% (annualized)
of the average daily net assets of the Fund. The Operating Expense Limit in any
year with respect to the Xxxxxxxxx Global Real Estate Equities Fund shall be
1.15% (annualized) of the average daily net assets of the Fund.
1.3 Duration of Operating Expense Limit. The Operating Expense Limit with
respect to each Fund shall remain in effect until July 31, 2020 unless renewed
by written agreement of the parties.
1.4 Method of Computation. To determine the Adviser's obligation with
respect to the Excess Amount, each day the Fund Operating Expenses for a Fund
shall be annualized. If the annualized Fund Operating Expenses for any day of a
Fund exceed the Operating Expense Limit of the Fund, the Adviser shall waive or
reduce its investment advisory fee or absorb the other Fund expenses in an
amount sufficient to pay that day's Excess Amount. The Trust may offset amounts
owed to a Fund pursuant to this Agreement against the advisory fee payable to
the Adviser.
2. TERM AND TERMINATION OF AGREEMENT.
The Agreement shall terminate either upon the termination of the Advisory
Agreement or on July 31, 2020. The obligation of the Adviser under Section 1 of
this Agreement shall survive the termination of the Agreement solely as to
expenses and obligations incurred prior to the date of such termination.
3. MISCELLANEOUS.
3.1 Captions. The captions in this Agreement are included for convenience
of reference only and in no other way define or delineate any of the provisions
hereof or otherwise affect their construction or effect.
3.2 Interpretation. Nothing herein contained shall be deemed to require the
Trust or a Fund to take any action contrary to the Trust's Declaration of Trust
or By-Laws, or any applicable statutory or regulatory requirement to which it is
subject or by which it is bound, or to relieve or deprive the Trust's Board of
Trustees of its responsibility for and control of the conduct of the affairs of
the Trust or the Fund.
3.3 Definitions. Any question of interpretation of any term or provision of
this Agreement, including but not limited to the investment advisory fee, the
computations of net asset values, and the allocation of expenses, having a
counterpart in or otherwise derived from the terms and provisions of the
Advisory Agreement or the 1940 Act, shall have the same meaning as and be
resolved by reference to such Advisory Agreement or the 1940 Act.
3.4 Amendments. This Agreement may be amended only by a written agreement
signed by each of the parties hereto.
3.5 Assignment. This Agreement may be assigned to the successors in
interest of either party with the consent of the other party.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be signed by
their respective officers thereunto duly authorized and their respective
corporate seals to be hereunto affixed, as of the day and year first above
written.
XXXXXXXXX GLOBAL INVESTORS
(NORTH AMERICA) INC.
By: /s/ Xxxxx Xxxxxxxxx
Name: Xxxxx Xxxxxxxxx
Title: Corporate Secretary
XXXXXXXXX GLOBAL FUNDS
By: /s/ Xxxxx X. Xxxx
Name: Xxxxx X. Xxxx
Title: Vice President
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