STATE FARM MUTUAL FUND TRUST
----------------------------
SUB-ITEM 77Q1(e)
AMENDED AND RESTATED INVESTMENT SUB-ADVISORY AGREEMENT
THIS AMENDED AND RESTATED AGREEMENT is made and entered into this 29th
day of April 2005 by and among STATE FARM MUTUAL FUND TRUST, a Delaware
business trust (the "Trust"), STATE FARM INVESTMENT MANAGEMENT CORP., a
Delaware corporation (the "Adviser"), and CAPITAL GUARDIAN TRUST COMPANY
(the "Sub-Adviser"), relates to investment management services to be
provided by the Sub-Adviser.
WHEREAS, the Trust is registered as an open-end management investment
company under the Investment Company Act of 1940, as amended (the "1940
Act");
WHEREAS, the Trust issues shares of beneficial interest (the "shares")
registered under the Securities Act of 1933, as amended (the "1933 Act")
pursuant to a registration statement initially filed with the Securities
and Exchange Commission on July 21, 2000, as amended from time to time (the
"Registration Statement");
WHEREAS, the Trust has established multiple separate series of Shares,
each corresponding to a separate investment portfolio having its own
investment objective (the "Funds");
WHEREAS, pursuant to a separate investment advisory and management
services agreement between the Trust and the Adviser (the "Advisory
Agreement"), the Trust has retained the Adviser to render investment
advisory and/or management services to each Fund;
WHEREAS, the Sub-Adviser is an investment adviser under the Investment
Advisers Act of 1940, as amended (the "Advisers Act");
WHEREAS, the Adviser desires to retain the Sub-Adviser to provide
investment advisory services to certain Funds in the manner and on the
terms and conditions set forth below; and
WHEREAS, the Sub-Adviser is willing to provide investment advisory
services to certain Funds in the manner and on the terms and conditions set
forth below; and
NOW, THEREFORE, in consideration of their mutual promises, the Trust,
the Adviser, and the Sub-Adviser agree as follows:
1
ARTICLE 1
Employment of Sub-Adviser
1.1 The Adviser hereby appoints the Sub-Adviser to act as
investment sub-adviser for and to invest and reinvest the assets of the
State Farm Equity Fund, the State Farm Small Cap Equity Fund and the State
Farm International Equity Fund, (together, the "Sub-Advised Funds"),
subject to the supervision and control of the Board of Trustees of the
Trust (the "Board") for the period and upon the terms herein set forth.
The Sub-Adviser will establish and maintain a discretionary investment
management account (the "Account") for each Sub-Advised Fund, consisting of
securities, funds, or other assets contributed or liabilities allocated,
(i) as the Adviser shall initially designate for the purposes of opening
this Account, (ii) as the Adviser may from time to time designate in
writing to Sub-Adviser and (iii) as the Adviser may substitute pursuant to
this Agreement. The Sub-Adviser shall invest and reinvest the assets of
the Account at such times and in such securities as it believes to be in
the best interest of the shareholders of each Sub-Advised Fund.
1.2 The Sub-Adviser accepts such appointment and agrees during
such period at its own expense to render the services set forth herein, and
to assume the obligations herein set forth for the compensation herein
provided.
1.3 The Sub-Adviser shall for all purposes be deemed to be an
independent contractor and, unless otherwise expressly provided or
authorized, shall have no authority to act for or represent the Trust or
the Adviser in any way or otherwise be deemed an agent of the Trust or the
Adviser. Notwithstanding the foregoing, the Sub-Adviser shall, for the
purposes of this agreement, have and exercise full investment discretion
and authority to act as agent for the Trust and the Adviser in buying,
selling or otherwise disposing of the investments of the Sub-Advised Funds,
subject to supervision by the Board.
1.4 The services of the Sub-Adviser herein provided are not to
be deemed exclusive. The Sub-Adviser may act as an investment adviser to
any other person, firm or corporation, and may perform management and any
other services for any other person, association, corporation, firm or
other entity pursuant to any contract or otherwise, and take any action or
do anything in connection therewith or related thereto, except as
prohibited by applicable law; and no such performance of management or
other services shall be in any manner restricted or otherwise affected by
any aspect of any relationship of the Sub-Adviser to the Trust, the Sub-
Advised Funds or the Adviser except as otherwise imposed by law or by this
agreement. The Sub-Adviser shall have no obligation to purchase or sell
for a Sub-Advised Fund, or to recommend for purchase or sale by a Sub-
Advised Fund, any security which Sub-Adviser, its
2
principles, affiliates or employees may purchase or sell for themselves or
for any other clients.
ARTICLE 2
Duties of Sub-Adviser
2.1 Investment Advisory Services.
(a) Subject to the supervision of the Board and the
Adviser, the Sub-Adviser shall provide the Sub-Advised Funds with such
investment research, advice and supervision as is necessary for the
investment and proper supervision of the assets of each Sub-Advised Fund.
In this regard, the Sub-Adviser shall:
(i) perform research and obtain and evaluate pertinent
economic, statistical, and financial data relevant to the investments of
each Sub-Advised Fund as contemplated by the investment objectives and
strategies of each Sub-Advised Fund as set forth in the Registration
Statement and any amendments thereto;
(ii) at such times as shall be reasonably requested by
the Board or the Adviser, consult with the Board and furnish to the Board
recommendations with respect to an overall investment strategy for each Sub-
Advised Fund for approval, modification, or rejection by the Board;
(iii) seek out and implement specific investment
opportunities, consistent with any investment strategies approved by the
Board;
(iv) take such steps as are necessary to implement any
overall investment strategy approved by the Board for each Sub-Advised
Fund, including making and carrying out day-to-day decisions to acquire or
dispose of permissible investments, management of investments and any other
property of the Sub-Advised Fund, and providing or obtaining such services
as may be necessary in managing, acquiring or disposing of investments;
(v) regularly report to the Board with respect to the
implementation of any approved overall investment strategy and any other
activities in connection with management of the assets of each Sub-Advised
Fund, including furnishing, within 10 days after the end of each calendar
quarter, a statement of all purchases and sales during the quarter and a
schedule of investments and other assets of each Sub-Advised Fund as of the
end of the quarter;
(vi) maintain all accounts, records, memoranda,
instructions or authorizations required to be maintained by the Sub-Adviser
3
pursuant to the requirements of Rule 31a-1 under the 1940 Act, for the
period required by Rule 31a-2 under the 1940 Act, with respect to
transactions by the Sub-Adviser on behalf of the Sub-Advised Funds;
(vii) provide reasonable assistance to the Custodian or
the Adviser regarding valuation of portfolio securities that the Custodian
or Adviser is unable to procure, so that the Custodian or Adviser can
determine each business day the net asset value of the shares of each
Sub-Advised Fund in accordance with applicable law; and
(viii) provide the Adviser with a report of each
portfolio trade no later than the close of the next business day following
such trade.
(b) The Sub-Adviser's services shall be subject always to
the control and supervision of the Board and the Adviser, the restrictions
of the Declaration of Trust and Bylaws of the Trust, as amended from time
to time, the provisions of the 1940 Act, and each Sub-Advised Fund's
investment objective or objectives, investment policies and investment
restrictions as set forth in the then-current Registration Statement. The
Trust or the Adviser has furnished or will furnish the Sub-Adviser with
copies of the Registration Statement, Declaration of Trust, and Bylaws as
currently in effect and the Trust agrees during the continuance of this
agreement to furnish the Sub-Adviser with copies of any amendments or
supplements thereto before or at the time the amendments or supplements
become effective. The Sub-Adviser will be entitled to rely on all
documents and other information furnished by the Trust or the Adviser or
the representatives of either.
(c) The Sub-Adviser represents that in performing
investment advisory services for each Sub-Advised Fund, the Sub-Adviser
shall use its reasonable best efforts to manage each Sub-Advised Fund's
portfolio holdings in a manner consistent with the requirements of
Subchapter M of the Internal Revenue Code of 1986 (the "Code"), or any
successor provision. The Sub-Adviser shall also make decisions for the Sub-
Advised Funds as to the manner in which voting rights, rights to consent to
corporate action and any other rights pertaining to the Sub-Advised Funds'
portfolio securities shall be exercised. Should the Board at any time make
any determination as to investment policy and notify the Sub-Adviser
thereof in writing, the Sub-Adviser, upon receipt of such notice, shall be
bound by such determination for the period, if any, specified in such
written notice or until similarly notified that such determination has been
revoked.
(d) In connection with the acquisition or disposition of
securities described in Section 2.1(a)(iv), the Sub-Adviser may place
orders for the purchase or sale of portfolio investments for the account of
each Sub-Advised Fund with brokers or dealers selected by it and, to that
end, the Sub-
4
Adviser is authorized as the agent of the Trust to give instructions to the
custodians of the Trust as to deliveries of securities and payments of cash
for the Account of each Sub-Advised Fund. In connection with the selection
of brokers or dealers and the placing of purchase and sale orders with
respect to assets of the Funds, the Sub-Adviser is directed at all times to
seek to obtain best execution. Subject to this requirement and the
provisions of the Advisers Act, the 1940 Act, the 1934 Act, and other
applicable provisions of law, the Sub-Adviser may select brokers or dealers
with which it or the Trust or the Adviser is affiliated.
(e) In seeking the best execution, the Sub-Adviser may also
take into consideration research and statistical information and wire and
other quotation services provided by brokers and dealers to the Sub-
Adviser. The Sub-Adviser is authorized to effect individual securities
transactions at commission rates in excess of the minimum commission rates
available, if the Sub-Adviser determines in good faith that such amount of
commission is reasonable in relation to the value of the brokerage and
research services provided by such broker or dealer, viewed in terms of
either that particular transaction or Sub-Adviser's overall
responsibilities with respect to the Sub-Advised Funds and its other
clients and that the total commissions paid by each Sub-Advised Fund will
be reasonable in relation to the benefits to the Sub-Advised Fund over the
long term. The execution of such transactions shall not be deemed to
represent an unlawful act or breach of any duty created by this agreement
or otherwise. The Sub-Adviser will periodically evaluate the statistical
data, research and other investment services provided to it by brokers and
dealers. Such services may be used by the Sub-Adviser in connection with
the performance of its obligations under this agreement or in connection
with other advisory or investment operations including using such
information in managing its own accounts.
In the event that any broker or dealer fails on the due date, or within
such reasonable period as the Sub-Adviser may decide, to deliver any
necessary documents or, as the case may be, to pay any amount due, the Sub-
Adviser will, on request, pursue on behalf of the Trust all appropriate
legal remedies against such broker or dealer to recover such documents or
amount due or compensation in lieu thereof. The costs and expenses
properly incurred by the Sub-Adviser in connection with the pursuit of such
remedies shall be debited to the Sub-Advised Fund, unless paid by the
Adviser or Trust.
(f) Nothing in this agreement shall preclude the
aggregation of orders for the sale or purchase of securities or other
investments by the Sub-Advised Funds or by the Trust and other separate
accounts or other accounts (collectively, "Advisory Clients") managed by
the Sub-Adviser, provided that: the Sub-Adviser's actions with respect to
the aggregation of orders for multiple Advisory Clients, including the
Trust, are consistent with the applicable then-current positions in this
regard taken by the Securities and Exchange Commission or its staff through
releases, "no-action" letters, or otherwise. The
5
Adviser and the Trust recognize that in some cases this procedure may
adversely affect the results obtained for Sub-Advised Funds.
2.2 The Adviser shall retain the authority to establish and
modify, from time to time, the investment strategies and approaches to be
followed by the Sub-Adviser with respect to any Sub-Advised Fund, subject,
in all respects, to the supervision and direction of the Trust's Board of
Trustees and subject to compliance with the investment objectives, policies
and restrictions applicable to such Fund as set forth in the Registration
Statement or any amendment thereto, provided, however, that the Sub-
Adviser's duty under this agreement to act in conformity with any document,
instruction or guidelines produced by the Adviser shall not arise until
such document, instruction or guideline has been delivered to the Sub-
Adviser in writing.
2.3 The Sub-Adviser is not authorized to take or receive
physical possession of any of the assets of the Account, it being intended
that sole responsibility for safekeeping thereof (in such investments as
the Sub-Adviser may direct) and the consummation of all purchase, sales,
deliveries and investments made pursuant to the Sub-Adviser's direction
shall rest upon the custodian for the Sub-Advised Fund. The Sub-Adviser
shall have no liability with respect to the custody arrangements or the
acts, conduct or omissions of such custodian.
The Adviser shall provide such information about the Trust and its assets
as the Sub-Adviser may from time to time reasonably request in connection
with the performance of its duties under this Agreement. The Adviser
acknowledges that the Sub-Adviser will be relying on the Adviser's
identification of any assets contributed, or liabilities allocated, from
time to time to the Account, as well as their availability for sale as
applicable. The Sub-Adviser may reasonably rely without further inquiry
upon any information furnished to it by the Adviser hereunder, and the Sub-
Adviser will not be responsible for any errors or omissions arising from
any inaccuracies in such information.
ARTICLE 3
Compensation of the Sub-Adviser
3.1 (a) For the services to be rendered, the facilities to be
furnished and the payments to be made, as provided herein, the parties
hereto agree that the Adviser shall pay to the Sub-Adviser for the calendar
quarter of each Sub-Advised Fund a fee computed in accordance with the Fee
Schedule attached hereto and incorporated herein. The payment shall be
made by the Adviser to the Sub-Adviser within three business days after the
end of the calendar quarter.
6
(b) The Adviser shall be responsible for payment of, and
the Sub-Adviser agrees that it shall have no claim against the Trust or any
Sub-Advised Fund respecting, the Sub-Adviser's compensation under this
agreement.
(c) During the term of this agreement, the Sub-Adviser will
bear all expenses incurred by it in connection with its services under this
agreement. The Sub-Adviser shall not be responsible for any expenses
incurred by the Trust, the Sub-Advised Funds or the Adviser.
3.2 For the quarter and year in which this agreement becomes
effective or terminates there shall be a proration on the basis of the
number of days that the agreement is in effect during the quarter and year
respectively.
3.3 If, pursuant to the Trust's Registration Statement and
Declaration of Trust then currently in effect, the net asset value is not
required to be determined on any particular business day, then for the
purpose of the foregoing computations, the net asset value of a share as
last determined shall be deemed to be the net asset value of a share as of
the close of business on that day.
3.4 In connection with purchases or sales of portfolio
securities for the account of the Sub-Advised Funds, neither the Sub-
Adviser nor any officer, director, shareholder or other affiliate of the
Sub-Adviser shall: (i) act as agent and accept any compensation other than
its compensation provided for in this agreement, except in the course of
such person's business as an underwriter or broker; or (ii) act as broker
and accept any commission, fee, or other remuneration in excess of the
limits prescribed in the 1940 Act and the rules promulgated thereunder.
ARTICLE 4
Limitations of Liability; Indemnification
4.1 Limitation of Liability of Sub-Adviser. The Sub-Adviser
shall not be liable for any error of judgment or import of law, or for any
loss suffered by the Trust, any Sub-Advised Fund or their shareholders in
connection with the matters to which this agreement relates, except loss
resulting from: (i) willful misfeasance, bad faith or gross negligence on
the part of the Sub-Adviser in the performance of its obligations and
duties under this agreement; or (ii) its reckless disregard of its
obligations and duties under this agreement. The Sub-Adviser shall not
have breached its obligations under this agreement by, nor shall it be
liable for, any action taken in good faith and in the exercise of due care.
4.2 Limitation of Liability of Trust. The Sub-Adviser
acknowledges that it has received notice of and accepts the limitations on
the Trust's liability as set forth in the Trust's Declaration of Trust, as
amended from
7
time to time. In accordance therewith, the Sub-Adviser agrees that the
Trust's obligations hereunder shall be limited to the assets of the
Sub-Advised Funds and, with respect to each Sub-Advised Fund, shall be
limited to the assets of such Sub-Advised Fund, and no party shall seek
satisfaction of any such obligation from any shareholder of the Trust, nor
from any trustee, officer, or employee of the Trust.
4.3 Indemnification.
(a) By the Sub-Adviser.
The Sub-Adviser shall indemnify and hold harmless the Adviser or the Trust
from any and all losses, claims, damages, or liabilities including
reasonable attorney's fees and related costs and expenses (collectively,
"Claims"), to the extent resulting, in whole or in part, from any acts, or
failure to act, of the Sub-Adviser, its affiliated companies, and their
respective directors, officers, and employees (collectively the "Sub-
Adviser Parties"), that constitute willful misconduct, bad faith, gross
negligence, or reckless disregard of the Sub-Adviser's obligations and
duties hereunder.
(b) By the Adviser.
Because the Adviser has been retained solely to provide the investment
advisory and related services described in this agreement, the Adviser
shall indemnify and hold harmless the Sub-Adviser Parties against any and
all Claims to which any of the Sub-Adviser Parties may become subject in
connection with the matters to which this Agreement relates including,
without limitation, claims under federal or state securities laws, federal
or state tax laws, or under any other statute or regulation, at common law
or otherwise, except to the extent that the Sub-Adviser provides an
indemnity under the previous paragraph, 4.3(a).
ARTICLE 5
Books and Records
5.1 The Sub-Adviser hereby undertakes and agrees to maintain, in
the form and for the period required, all records relating to the Sub-
Advised Funds' investments that are required to be maintained by the Trust
pursuant to the requirements of Rule 31a-1 of the 1940 Act.
5.2 In compliance with Rule 31a-3 of the 1940 Act, the Sub-
Adviser agrees that all books and records which it maintains for the Sub-
Advised Funds are the property of the Trust and further agrees to surrender
promptly to the Trust any such books, records or information upon the
Trust's request. All such books and records shall be made available,
within five business days of a
8
written request, to the Trust's accountants or auditors during regular
business hours at the Sub-Adviser's offices. The Trust or its authorized
representative shall have the right to copy any records in the possession
of the Sub-Adviser, which pertain to the Trust. Such books, records,
information or reports shall be made available to properly authorized
government representatives consistent with state and federal law and/or
regulations. In the event of the termination of this agreement, upon
payment of any compensation due Sub-Adviser under Article 3 hereof, all
such books, records or other information shall be returned to the Trust
upon the Trust's request.
5.3 The Sub-Adviser further agrees that it will not disclose or
use any records or information obtained pursuant to this agreement in any
manner whatsoever except as authorized in this agreement or as otherwise
authorized by the Trust or the Adviser and that it will keep confidential
any information obtained pursuant to this agreement and disclose such
information only if the Trust or the Adviser has authorized such
disclosure, or if such disclosure is required by federal or state
regulatory authorities.
ARTICLE 6
Duration and Termination of this Agreement
6.1 Effective Date and Term. This agreement shall not become
effective unless and until the later of the time at which (i) it is
approved by the Trust's Board, including a majority of Trustees who are not
parties to this agreement or interested persons of any such party to this
agreement, or (ii) it is approved by such Sub-Advised Fund's outstanding
voting securities as required by the 1940 Act. This agreement shall come
into full force and effect on the date which it is so approved. As to each
Sub-Advised Fund, the agreement shall continue in effect for two years and
shall thereafter continue in effect from year to year so long as such
continuance is specifically approved for each Sub-Advised Fund at least
annually by: (i) the Board, or by the vote of a majority of such Sub-
Advised Fund's outstanding voting securities; and (ii) a majority of those
Trustees 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.
6.2 Termination.
(a) This agreement may be terminated at any time, without
penalty, by vote of the Board, by vote of the holders of a majority of the
outstanding shares of the applicable Sub-Advised Fund, or by the Adviser or
Sub-Adviser, on sixty (60) days' written notice to the other parties.
(b) This agreement may be terminated at any time without
the payment of any penalty by the Adviser or by vote of the Board in the
event that it shall have been established by a court of competent
jurisdiction that
9
the Sub-Adviser or any officer or director of the Sub-Adviser has taken any
action which results in a breach of the covenants of the Sub-Adviser set
forth herein.
(c) This agreement shall automatically terminate in the
event of its assignment.
ARTICLE 7
Amendments to this Agreement
7.1 This agreement may be amended as to each Sub-Advised Fund by
the parties only if such amendment is specifically approved by: (i) the
vote of a majority of such Sub-Advised Fund's outstanding voting
securities; and (ii) a majority of those Trustees 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 (unless, in the
case of (i), the Trust receives an order of the Commission or "no-action"
letter permitting it to modify the agreement without such vote).
ARTICLE 8
Notices
8.1 All notices and other communications hereunder shall be in
writing (including telex or similar writing) and shall be deemed given if
delivered in person or by messenger, cable, telegram or telex or facsimile
transmission or by a reputable overnight delivery service which provides
evidence of receipt to the parties at the following addresses or telex or
facsimile transmission numbers (or such other address or number for a party
as shall be specified by like notice):
(a) if to the Sub-Adviser, to:
Capital Guardian Trust Company
▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Facsimile transmission number: (▇▇▇) ▇▇▇-▇▇▇▇
Attention: Treasurer
(b) if to the Trust, to:
State Farm Mutual Fund Trust
Three ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Facsimile transmission number: (▇▇▇) ▇▇▇-▇▇▇▇
Attention: Secretary
10
(c) if to the Adviser, to:
State Farm Investment Management Corp.
Three ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Facsimile transmission number: (▇▇▇) ▇▇▇-▇▇▇▇
Attention: Secretary
Each such notice or other communication shall be effective (i) if given by
telex or facsimile transmission, when such telex or facsimile is
transmitted to the number specified in this section and the appropriate
answer back or confirmation is received, and (ii) if given by any other
means, when delivered at the address specified in this section.
ARTICLE 9
Representations and Warranties
9.1 Of the Sub-Adviser. By entering into this agreement, the
Sub-Adviser represents and warrants that:
(a) it is an investment adviser under the Advisers Act;
(b) it has full power and authority to enter into this
agreement, and that the undersigned has full power and authority to execute
this Agreement on the Sub-Advisor's behalf;
9.2 Of the Adviser. By entering into this agreement, the
Adviser represents and warrants that:
(a) it is a Delaware corporation;
(b) it has full power and authority to serve in its
capacity as Adviser to Trust and to enter into this agreement, and that the
undersigned has full power and authority to execute the Agreement on the
Adviser's behalf.
(c) all securities, funds and other assets which at any
time constitute an Account are the sole property of the Trust and are free
from any charge or encumbrance;
(d) it has obtained all necessary licenses, permits,
approvals or other registrations to act as the Adviser of the Trust (and
will promptly notify the Sub-Adviser if any such licenses, permits,
approvals or other registrations are suspended, revoked or not renewed);
11
(e) it shall not transact in or remove from an Account any
securities, funds or other assets without first giving reasonable written
notice to the Sub-Adviser or terminating this Agreement; and
(f) it has received a copy of Part II of the Sub-Advisor's
Form ADV (the "ADV"). The Advisor understands that if it has received the
ADV less than 48 hours prior to its entering into this Agreement, the
Advisor may terminate the Agreement without penalty within five (5)
business days after entering into the Agreement.
9.3 Of the Trust.
(a) it is a Delaware business trust;
(b) it has full power and authority to enter into this
agreement, and that the undersigned has full power and authority to execute
the agreement on the Trust's behalf;
(c) all securities, funds and other assets which at any
time constitute an Account are the sole property of the Trust and are free
from any charge or encumbrance;
(d) it has obtained all necessary licenses, permits,
approvals or other registrations to act as a Trust (and will promptly
notify the Sub-Adviser if any such licenses, permits, approvals or other
registrations are suspended, revoked or not renewed); and
(e) it shall not transact in or remove from an Account any
securities, funds or other assets without first giving reasonable written
notice to the Sub-Adviser or terminating this Agreement.
ARTICLE 10
Use of Name
The Adviser and the Trust acknowledge and agree that the names "Capital
Guardian Trust Company," "Capital Guardian," and any of the other names of
the Sub-Adviser or the Sub-Adviser's affiliates (including the American
Funds Group), and any derivative or logo or trade or service ▇▇▇▇ thereof
(collectively, the "Names and Trademarks"), are the valuable property of
the Sub-Adviser and the Sub-Adviser's affiliates. The Adviser and the
Trust shall not have the right to use the Names and Trademarks without the
prior, express, written consent of the Sub-Adviser, which consent shall not
be unreasonably withheld for the period of time of which this Agreement is
in effect; provided, however, that such names may be used in the
Registration Statement then currently in effect without such
12
approval. Immediately, upon termination of this Agreement, the Adviser and
the Trust shall cease to use such Names and Trademarks.
The Adviser and the Trust agree that they will review with the Sub-Adviser
any advertisement, sales literature, presentation material or other notice
prior to its use or publication that makes reference to the Names and/or
Trademarks, so that the Sub-Adviser may review the context in which the
Names and/or Trademarks are being referred to, it being agreed that the Sub-
Adviser shall have no responsibility to ensure the adequacy of the form or
content of such materials for the purposes of applicable laws or
regulations, if any. If the Adviser or the Trust makes any unauthorized
use of, or reference to, the Names or the Trademarks, the Adviser and the
Trust acknowledges that the Sub-Adviser may suffer irreparable harm for
which monetary damages may not be completely adequate, and therefore the
Sub-Adviser may also seek injunctive relief.
ARTICLE 11
Miscellaneous Provisions
11.1 Definitions of Certain Terms. The terms "assignment",
"affiliated person" and "interested person", when used in this agreement,
shall have the respective meanings specified in the 1940 Act. The term
"majority of the Sub-Advised Fund's outstanding voting securities" means
the lesser of: (a) 67% or more of the votes attributable to such Shares of
the Sub-Advised Fund present at a meeting if the holders of more than 50%
of such votes are present or represented by proxy; or (b) more than 50% of
the votes attributable to Shares of the Sub-Advised Fund.
11.2 Applicable Law.
(a) This agreement shall be construed and the provisions
hereof interpreted under and in accordance with the laws of Illinois
without regard to its conflicts of laws rules.
(b) This agreement shall be subject to the provisions of
the 1940 and the Advisers Acts, and the rules and regulations and rulings
thereunder, including such exemptions from those statutes, rules and
regulations as the SEC may grant and the terms hereof shall be interpreted
and construed in accordance therewith.
11.3 Severability. If any provision of this agreement shall be
held or made invalid by a court decision, statute, rule or otherwise, the
remainder of this agreement shall not be affected thereby.
11.4 "State Farm". The Sub-Adviser agrees that the name "State
Farm," which comprises a component of the Trust's name, is a property
13
right of the parent of the Adviser. Except as is necessary in performing its
duties under this Agreement, Sub-Adviser shall not have the right to use
the name "State Farm" or any derivative name or logo or trade or service
▇▇▇▇ thereof without the express, written consent of the Adviser. The Sub-
Adviser acknowledges that the use of the name "State Farm" by the Trust is
governed by the terms of the Advisory Agreement.
11.5 Captions. The captions in this agreement are included for
convenience of reference only and in no way define or delineate any of the
provisions hereof or otherwise affect their construction or effect.
11.6 Counterparts. This agreement may be executed
simultaneously in multiple counterparts, each of which taken together shall
constitute one and the same instrument.
11.7 Cooperation with Authorities. Each party hereto shall
cooperate with the other party and all appropriate governmental authorities
(including without limitation the SEC, the NASD, and state securities regu
lators) and shall permit such authorities reasonable access to its books
and records in connection with any investigation or inquiry relating to
this agreement or the transactions contemplated hereby.
11.8 Force Majeure. The Sub-Adviser shall not be liable for any
failure, delay or interruption in the performance of its obligations
hereunder if such failure, delay or interruption results from the
occurrence of any acts, events or circumstances beyond the Sub-Adviser's
reasonable control, and the Sub-Adviser shall have no responsibility of any
kind for any loss or damage thereby incurred or suffered by the Adviser.
In such case, the terms of the Agreement shall continue in full force and
effect and the Sub-Adviser's obligations shall be performed or carried out
as soon as legally and practicably possible after the cessation of such
acts, events or circumstances.
11.9 Privacy. No entity a party to this agreement shall disclose
or use nonpublic personal information (as defined in Rule 3(t) of
Regulation S-P) provided by any other party to this agreement, except as
necessary to carry out the purposes for which such information is provided,
including information that is used in accordance with Rules 14 and 15 of
Regulation S-P in the ordinary course of business.
14
IN WITNESS WHEREOF, the parties hereto have caused this
agreement to be executed in their names and on their behalf by their duly
authorized officers all on the day and year first above written.
STATE FARM INVESTMENT MANAGEMENT CORP.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇, ▇▇.
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇, ▇▇.
Title: President
STATE FARM MUTUAL FUND TRUST
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: Senior Vice President and Treasurer
CAPITAL GUARDIAN TRUST COMPANY
By: /s/ ▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Name: ▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Title: Vice President
15
FEE SCHEDULE
The fees payable by the Adviser to the Sub-Adviser shall be determined
according to the following schedule and shall be based upon the average
daily net assets as determined by the Adviser. The fee shall be accrued
daily and paid quarterly to the Sub-Adviser by the Adviser.
Equity Fund:
On the first $25 million ...... 0.55% of average daily net assets
$25 million to $50 million .... 0.40% of average daily net assets
Over $50 million .............. 0.275% of average daily net assets
Small Cap Equity Fund:
On the first $25 million ...... 0.75% of average daily net assets
$25 million to $50 million .... 0.60% of average daily net assets
$50 million to $100 million ... 0.425% of average daily net assets
Over $100 million ............. 0.375% of average daily net assets
International Equity Fund:
On the first $25 million ...... 0.75% of average daily net assets
$25 million to $50 million .... 0.60% of average daily net assets
$50 million to $250 million ... 0.425% of average daily net assets
Over $250 million ............. 0.375% of average daily net assets
For purposes of calculating the fees under the above schedules, other
assets managed by Sub-Adviser for companies associated with the Adviser are
taken into consideration according to Sub-Adviser fee aggregation and
discount policies.
16