EX-99.B(d)(1)(ii)
AMENDED AND RESTATED FEE AND EXPENSE AGREEMENT
THIS AMENDED AND RESTATED AGREEMENT is made as of this 7th day of August,
2001 and amends and restates the agreement made as of March 1, 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 "Adviser"), 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 adviser 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 Adviser hereby agrees
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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
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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.
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(a) Initial Waiver. The parties agree that Funds Management will
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maintain the Capped Operating Expense Ratios until the expiration/renewal date
specified in Schedule A (the "Expiration/Renewal Date").
1
(b) Automatic Renewal of the Commitments. The parties agree that each
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Commitment will renew automatically for a period of one year from each
anniversary of the Expiration/Renewal Date 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
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Commitment. Following any non-renewal of a Commitment with respect to one or
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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.
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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).
(e) Funds Management's Ability to Reduce a Capped Operating Expense
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Ratio or Extend the Term of a Commitment. Notwithstanding any other provision of
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this Agreement, Funds Management may reduce the Capped Operating Expense Ratio
of a Fund or a class, or extend the term of the Commitment to maintain the
Capped Operating Expense Ratio of a Fund or a class, without prior approval of
the Board of Trustees. Funds Management shall inform the Board of Trustees of
any action taken under this Subsection no later than the next regularly
scheduled Board meeting. Unless Funds Management informs the Board that the
reduced Capped Operating Expense Ratio will be governed by the renewal and non-
renewal provisions of Subsection 3(b), the Capped Operating Expense Ratio of the
Fund or class will revert to the Capped Operating Expense Ratio previously in
effect at the next Expiration/Renewal Date.
4. Modification; Amendment. No modification or amendment to this
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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 Funds Management, 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
2
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), or any reductions implemented by Funds
Management pursuant to Subsection 3(e); (c) Schedule A shall be updated to
reflect any term extensions implemented by Funds Management pursuant to Section
3(e); and (d) 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 Fee and Expense
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Agreement among Xxxxx Fargo Funds Trust, Xxxxx Fargo Core Trust and Xxxxx Fargo
Bank, N.A. dated March 1, 2001. This Agreement constitutes the entire agreement
of the parties with respect to its subject matter. Each provision herein shall
be treated as separate and 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
August 7, 2001.
XXXXX FARGO FUNDS TRUST, for itself and on XXXXX FARGO FUNDS MANAGEMENT, LLC
behalf of its series listed from time to
time on the Schedules attached hereto
By /s/ C. Xxxxx Xxxxxxx By /s/ Xxxxxx Xxxx
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C. Xxxxx Xxxxxxx Xxxxxx Xxxx
Secretary Vice President
XXXXX FARGO CORE TRUST
By /s/ C. Xxxxx Xxxxxxx
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C. Xxxxx Xxxxxxx
Secretary
3
Schedule A
As of November 27, 2001
XXXXX FARGO FUNDS TRUST
Capped Operating Expense Ratios
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Name of Fund/Class Capped Operating Expiration/ Renewal
Expense Ratio Date
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Aggressive Balanced-Equity
Institutional Class 1.00% January 31
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Arizona Tax-Free
Class A 0.77% October 31
Class B 1.52% October 31
Institutional Class 0.60% October 31
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Asset Allocation/1/
Class A 1.15% January 31
Class B 1.90% January 31
Class C 1.90% January 31
Institutional Class 0.95% January 31
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California Tax-Free
Class A 0.77% October 31
Class B 1.52% October 31
Class C 1.52% October 31
Institutional Class 0.60% October 31
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California Limited Term Tax-Free
Class A 0.75% October 31
Institutional Class 0.60% October 31
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California Tax-Free Money Market
Class A 0.65% July 31
Service Class 0.45% July 31
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California Tax-Free Money Market Trust 0.20% July 31
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Cash Investment Money Market
Class Service/Admin. 0.48% July 31
Institutional Class 0.25% July 31
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Colorado Tax-Free
Class A 0.60% October 31
Class B 1.35% October 31
Institutional Class 0.60% October 31
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/1/ The Commitments shown represent the capped operating expense ratios of
each Class, effective February 1, 2002 until at least January 21, 2003. The
current capped operating expense ratios for the Class A, Class B, Class C
and institutional Class are 0.99%, 1.74%, 1.74%, and 1.00%, respectively.
A-1
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Name of Fund/Class Capped Operating Expiration/ Renewal
Expense Ratio Date
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Corporate Bond
Class A 1.00% September 30
Class B 1.75% September 30
Class C 1.75% September 30
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Diversified Bond
Institutional Class 0.70% September 30
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Diversified Equity
Class A 1.25% None/2/
Class B 2.00%
Class C 2.00%
Institutional Class 1.00%
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Diversified Small Cap
Class A 1.40% January 31
Class B 2.15% January 31
Institutional Class 1.20% January 31
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Equity Income
Class A 1.10% January 31
Class B 1.85% January 31
Class C 1.85% January 31
Institutional Class 0.85% January 31
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Equity Index
Class A 0.67% January 31
Class B 1.41% January 31
Class O 0.50% January 31
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Equity Value
Class A 1.18% January 31
Class B 1.93% January 31
Class C 1.93% January 31
Institutional Class 1.00% January 31
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Government Institutional Money Market Fund 0.20% July 31
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Government Money Market
Class A 0.75% July 31
Service Class 0.50% July 31
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Growth
Class A 1.12% January 31
Class B 1.87% January 31
Institutional Class 1.00% January 31
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/2/ The waiver commitments for this Fund are not subject to the automatic
renewal provision of Section 3(b) of this Agreement. The capped operating
expense ratio of each Class, however, may be increased only with the
approval of the Board of Trustees.
A-2
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Name of Fund/Class Capped Operating Expiration/ Renewal
Expense Ratio Date Growth Balanced
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Growth Balanced
Class A 1.15% January 31
Class B 1.90% January 31
Class C 1.90% January 31
Institutional Class 0.93% January 31
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Growth Equity
Class A 1.50% January 31
Class B 2.25% January 31
Class C 2.25% January 31
Institutional Class 1.25% January 31
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Income
Class A 1.00% September 30
Class B 1.75% September 30
Institutional Class 0.75% September 30
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Income Plus/3/
Class A 1.10% September 30
Class B 1.85% September 30
Class C 1.85% September 30
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Index
Institutional Class 0.25% January 31
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Index Allocation /4/
Class A 1.30% January 31
Class B 2.05% January 31
Class C 2.05% January 31
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Intermediate Government Income
Class A 0.96% September 30
Class B 1.71% September 30
Class C 1.71% September 30
Institutional Class 0.68% September 30
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International
Class A 1.75% January 31
Class B 2.50% January 31
Institutional Class 1.50% January 31
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___________________
/3/ The Board has approved a reorganization of the Corporate Board Fund into
the plus Fund subject to shareholder appeal. The Board also has approved a
reduction in the net operating expense ratio until at least September 30,
2002, if the Reorganization is approved.
/4/ At the November 6, 2001 regular meeting, the Board approved extending the
commitment to maintain these waver until at least January 31, 2003. These
are the same as the capped operating expense ratio of each Class that
currently are in effect until at least January 31, 2002.
A-3
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Name of Fund/Class Capped Operating Expiration/ Renewal
Expense Ratio Date
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International Equity/5/
Class A 1.75% January 31
Class B 2.50% January 31
Class C 2.50% January 31
Institutional Class 1.50% January 31
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Large Cap Appreciation/6/
Class A 1.20% January 31
Class B 1.95% January 31
Class C 1.95% January 31
Institutional Class 0.95% January 31
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Large Company Growth
Class A 1.20% January 31
Class B 1.75% January 31
Class C 1.75% January 31
Institutional Class 1.00% January 31
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Limited Term Government Income
Class A 0.96% September 30
Class B 1.71% September 30
Institutional Class 0.68% September 30
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Mid Cap Growth
Class A 1.40% January 31
Class B 2.15% January 31
Class C 2.15% January 31
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Minnesota Tax-Free
Class A 0.60% October 31
Class B 1.35% October 31
Institutional Class 0.60% October 31
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Moderate Balanced
Institutional Class 0.88% January 31
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Money Market
Class A 0.76% July 31
Class S/B 1.51% July 31
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Money Market Trust 0.20% July 31
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_____________________________
/5/ The Board has approved a reorganization of the International Fund into
Equity Fund, subject to shareholder approval. The Board also has approved a
reduction in the net operating expense ratio of the International Equity
Fund by 0.05% and to maintain this reduced net operating expense ratio
until at least January 31, 2003, if the Reorganization is approved.
/6/ Initial Commitment extends for one year from the effectiveness of the
initial proposals. Thereafter, the Expiration/Renewal Date is January 31.
A-4
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Name of Fund/Class Capped Operating Expiration/ Renewal
Expense Ratio Date
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National Tax-Free
Class A 0.80% October 31
Class B 1.55% October 31
Class C 1.55% October 31
Institutional Class 0.60% October 31
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National Limited Term Tax-Free
Institutional Class 0.60% October 31
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National Tax-Free Money Market
Class A 0.65% July 31
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National Tax-Free Institutional Money Market
Class Service 0.45% July 31
Institutional Class 0.30% July 31
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National Tax-Free Money Market Trust 0.20% July 31
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Nebraska Tax-Free Fund
Institutional Class 0.83% October 31
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Oregon Tax-Free
Class A 0.77% October 31
Class B 1.52% October 31
Institutional Class 0.60% October 31
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OTC Growth Fund
Class O 1.30% January 31
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Overland Express Sweep 1.25% July 31
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Outlook Today/7/
Class A 1.30% June 30
Class B 1.80% June 30
Class C 1.80% June 30
Institutional Class 1.00% June 30
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Outlook 2010/7/
Class A 1.30% June 30
Class B 1.80% June 30
Class C 1.80% June 30
Institutional Class 1.00% June 30
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__________________________________
/7/ The Board approved extending the term of the Commitment of all Classes of
each Outlook Fund until June 30, 2003. The Commitments shown represent the
capped operating expense ratios of each Class since the shareholders
approved new advisory arrangements in October 2001. The Capped Operating
Expense Ratio of the Class B and Class C shares are expected to increase to
2.05% after June 30, 2003.
A-5
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Name of Fund/Class Capped Operating Expiration/ Renewal
Expense Ratio Date
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Outlook 2020/7/
Class A 1.30% June 30
Class B 1.80% June 30
Class C 1.80% June 30
Institutional Class 1.00% June 30
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Outlook 2030/7/
Class A 1.30% June 30
Class B 1.80% June 30
Class C 1.80% June 30
Institutional Class 1.00% June 30
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Outlook 2040/7/
Class A 1.30% June 30
Class B 1.80% June 30
Class C 1.80% June 30
Institutional Class 1.00% June 30
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Prime Investment Institutional
Money Market 0.20% July 31
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Prime Investment Money Market
Class Service 0.55% July 31
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Small Cap Opportunities/8/
Class A 1.40% January 31
Class B 2.15% January 31
Institutional Class 1.25% January 31
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Small Cap Growth
Class A 1.40% January 31
Class B 2.15% January 31
Class C 2.15% January 31
Institutional Class 1.20% January 31
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______________________
/7/ The Board approved extending the term of the Commitments of all of the
Classes of each Outlook Fund until June 30, 2003. The Commitments shown
represent the capped operating expense ratios of each Class since the
shareholders approved new advisory arrangements in October 2001. The Capped
Operating Expense Ratios of the Class B and Class C shares are expected to
increase to 2.05% after June 30, 2003.
/8/ The Board has approved a proposed reorganization of the Small Cap Value
Fund into the Small Cap Opportunities Fund. The Board also approved
extending the commitment to maintain the net operating expense ratio until
at least January 31, 2003, if the Reorganization is approved.
A-6
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Name of Fund/Class Capped Operating Expiration/ Renewal
Expense Ratio Date
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Small Cap Value
Institutional Class 1.25% January 31
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Small Company Growth
Institutional Class 1.25% January 31
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Small Company Value
Class A 1.40% January 31
Class B 2.15% January 31
Institutional Class 1.25% January 31
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Specialized Health Sciences
Class A 1.65% January 31
Class B 2.40% January 31
Class C 2.40% January 31
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Specialized Technology
Class A 1.75% January 31
Class B 2.50% January 31
Class C 2.50% January 31
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Stable Income
Class A 0.90% September 30
Class B 1.65% September 30
Institutional Class 0.65% September 30
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Strategic Income
Institutional Class 0.80% January 31
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Tactical Maturity Bond Fund
Institutional Class 0.60% September 30
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Treasury Plus Money Market
Class A 0.65% July 31
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Treasury Plus Institutional Money Market
Class Service 0.46% July 31
Institutional Class 0.25% July 31
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WealthBuilder Growth 1.25% September 30
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WealthBuilder Growth & Income 1.25% September 30
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WealthBuilder Growth Balanced 1.25% September 30
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Xxxxx Fargo SIFE Specialized Financial Services
Fund/9/
Class A 1.35% January 31
Class B 2.10% January 31
Class C 2.10% January 31
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______________________________
/9/ Initial Commitment extends from two years from the commencement of
operations of the Fund. Thereafter, the Expiration/Renewal Date is
January 31.
A-7
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Name of Fund/Class Capped Operating Expiration/ Renewal
Expense Ratio Date
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100% Treasury Institutional Money Market 0.20% July 31
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100% Treasury Money Market
Class A 0.65% July 31
Service Class 0.46% July 31
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A-8
Schedule B
As of November 27 2001
XXXXX FARGO FUNDS TRUST
Not Subject to Capped Operating Expense Ratios
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Name of Fund/Class Date of Removal
from Schedule A
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B-1
