Exhibit No. Ex-99.d.2.n
SUBADVISORY AGREEMENT
THIS AGREEMENT is made and entered into effective the 1st day of May,
2007, by and among NATIONWIDE VARIABLE INSURANCE TRUST (formerly, Gartmore
Variable Insurance Trust) (the "Trust"), a Delaware statutory trust, NATIONWIDE
FUND ADVISORS (formerly Gartmore Mutual Fund Capital Trust) (the "Adviser") a
Delaware business trust registered under the Investment Advisers Act of 1940, as
amended (the "Advisers Act"), and ▇▇▇▇▇▇ CAPITAL MANAGEMENT, INC. (formerly,
Gartmore ▇▇▇▇▇▇ Capital Management, Inc.), a corporation organized under the
laws of the State of Oregon (the "Subadviser"), and also registered under the
Advisers Act.
W I T N E S S E T H:
WHEREAS, the Trust is registered with the U.S. Securities and Exchange
Commission (the "SEC") as an open-end management investment company under the
Investment Company Act of 1940, as amended (the "1940 Act");
WHEREAS, the Adviser has, pursuant to an Investment Advisory Agreement
with the Trust dated of the 1st day of May, 2007 (the "Advisory Agreement"),
been retained to act as investment adviser for certain of the series of the
Trust that are listed on Exhibit A to this Agreement (each, a "Fund");
WHEREAS, the Adviser represents that it is willing and possesses legal
authority to render such services subject to the terms and conditions set forth
in this Agreement;
WHEREAS, the Trust and the Adviser each represent that the Advisory
Agreement permits the Adviser to delegate certain of its duties under the
Advisory Agreement to other investment advisers, subject to the requirements of
the 1940 Act; and
WHEREAS, the Adviser desires to retain Subadviser to assist it in the
provision of a continuous investment program for that portion of the Fund's
assets that the Adviser will assign to the Subadviser, and Subadviser is willing
to render such services subject to the terms and conditions set forth in this
Agreement,
NOW, THEREFORE, the parties do mutually agree and promise as follows
with respect to each Fund:
1. APPOINTMENT AS SUBADVISER. The Adviser hereby appoints the
Subadviser to act as investment adviser for and to manage that portion or all of
the assets of the Fund that the Adviser from time to time upon reasonable prior
notice allocates to, and puts under the control of, the Subadviser (the
"Subadviser Assets") subject to the supervision of the Adviser and the Board of
Trustees of the Trust and subject to the terms of this Agreement; and the
Subadviser hereby accepts such appointment. In such capacity, the Subadviser
shall be responsible for the investment management of the Subadviser Assets. It
is recognized that the Subadviser and certain of its affiliates now act, and
that from time to time hereafter may act, as investment adviser to one or more
other investment companies and to fiduciary or other managed accounts and that
the Adviser and the Trust cannot object to such activities.
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2. DUTIES OF SUBADVISER.
(a) INVESTMENTS. The Subadviser is hereby authorized and directed
and hereby agrees, subject to the stated investment policies and
restrictions of the Fund as set forth in the Fund's prospectus and
statement of additional information as currently in effect and, as soon
as practical after the Trust, the Fund or the Adviser notifies the
Subadviser thereof, as supplemented or amended from time to time
(collectively referred to hereinafter as the "Prospectus") and subject
to the directions of the Adviser and the Trust's Board of Trustees, to
monitor on a continuous basis the performance of the Subadviser Assets
and to conduct a continuous program of investment, evaluation and, if
appropriate, sale and reinvestment of the Subadviser Assets. The
Adviser agrees to provide the Subadviser with such assistance as may be
reasonably requested by the Subadviser in connection with the
Subadviser's activities under this Agreement, including, without
limitation, providing information concerning the Fund, its funds
available, or to become available, for investment and generally as to
the conditions of the Fund's or the Trust's affairs.
(b) COMPLIANCE WITH APPLICABLE LAWS AND GOVERNING DOCUMENTS. In the
performance of its services under this Agreement, the Subadviser shall
act in conformity with the Prospectus and the Trust's Agreement and
Declaration of Trust and By-Laws as currently in effect and, as soon as
practical after the Trust, the Fund or the Adviser notifies the
Subadviser thereof, as supplemented, amended and/or restated from time
to time (referred to hereinafter as the "Declaration of Trust" and
"By-Laws," respectively) and with the instructions and directions
received in writing from the Adviser or the Trustees of the Trust and
will conform to, and comply with, the requirements of the 1940 Act, the
Internal Revenue Code of 1986, as amended (the "Code"), and all other
applicable federal and state laws and regulations. Without limiting the
preceding sentence, the Adviser promptly shall notify the Subadviser as
to any act or omission of the Subadviser hereunder that the Adviser
reasonably deems to constitute or to be the basis of any noncompliance
or nonconformance with any of the Trust's Declaration of Trust and
By-Laws and the Prospectus, the instructions and directions received in
writing from the Adviser or the Trustees of the Trust or the 1940 Act,
the Code, and all other applicable federal and state laws and
regulations. Notwithstanding the foregoing, the Adviser shall remain
responsible for ensuring the Fund's and the Trust's overall compliance
with the 1940 Act, the Code and all other applicable federal and state
laws and regulations and the Subadviser is only obligated to comply
with this subsection (b) with respect to the Subadviser Assets. The
Adviser timely will provide the Subadviser with a copy of the minutes
of the meetings of the Board of Trustees of the Trust to the extent
they may affect a Fund or the services of the Subadviser, copies of any
financial statements or reports made by a Fund to its shareholders, and
any further materials or information which the Subadviser may
reasonably request to enable it to perform its functions under this
Agreement.
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The Adviser shall perform quarterly and annual tax compliance tests
to ensure that the Fund is in compliance with Subchapter M and Section
817(h) of the Code. In connection with such compliance tests, the
Adviser shall inform the Subadviser at least ten (10) business days
prior to a calendar quarter end if the Subadviser Assets are out of
compliance with the diversification requirements under either
Subchapter M or Section 817(h). If the Adviser notifies the Subadviser
that the Subadviser Assets are not in compliance with such requirements
noted above, the Subadviser will take prompt action to bring the
Subadviser Assets back into compliance within the time permitted under
the Code thereunder.
The Adviser will provide the Subadviser with reasonable advance
notice of any change in a Fund's investment objectives, policies and
restrictions as stated in the Prospectus, and the Subadviser shall, in
the performance of its duties and obligations under this Agreement,
manage the Subadviser Assets consistent with such changes, provided
that the Subadviser has received prompt notice of the effectiveness of
such changes from the Trust or the Adviser. In addition to such notice,
the Adviser shall provide to the Subadviser a copy of a modified
Prospectus reflecting such changes. The Adviser acknowledges and will
ensure that the Prospectus will at all times be in compliance with all
disclosure requirements under all applicable federal and state laws and
regulations relating to the Trust or the Fund, including, without
limitation, the 1940 Act, and the rules and regulations thereunder, and
that the Subadviser shall have no liability in connection therewith,
except as to the accuracy of material information furnished in writing
by the Subadviser to the Trust or to the Adviser specifically for
inclusion in the Prospectus. The Subadviser hereby agrees to provide to
the Adviser in a timely manner such information relating to the
Subadviser and its relationship to, and actions for, the Trust as may
be required to be contained in the Prospectus or in the Trust's
Registration Statement on Form N-1A.
(c) VOTING OF PROXIES. The Adviser hereby delegates to the
Subadviser the Adviser's discretionary authority to exercise voting
rights with respect to the securities and other investments in the
Subadviser Assets and authorizes the Subadviser to delegate further
such discretionary authority to a designee identified in a notice given
to the Trust and the Adviser. The Subadviser, including without
limitation its designee, shall have the power to vote, either in person
or by proxy, all securities in which the Subadviser Assets may be
invested from time to time, and shall not be required to seek or take
instructions from, the Adviser, the Fund or the Trust or take any
action with respect thereto. If both the Subadviser and another entity
managing assets of the Fund have invested the Fund's assets in the same
security, the Subadviser and such other entity will each have the power
to vote its pro rata share of the Fund's security.
The Subadviser will establish a written procedure for proxy voting
in compliance with current applicable rules and regulations, including
but not limited to Rule 30b1-4 under the 1940 Act. The Subadviser will
provide the Adviser or its designee, a copy of such procedure and
establish a process for the timely distribution of the Subadviser's
voting record with respect to the Fund's securities and other
information necessary for the Fund to complete information required by
Form N-1A under the 1940 Act and the Securities Act of 1933, as amended
(the "Securities Act"), Form N-PX under the 1940 Act, and Form N-CSR
under the ▇▇▇▇▇▇▇▇-▇▇▇▇▇ Act of 2002, as amended, respectively.
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(d) AGENT. Subject to any other written instructions of the Adviser
or the Trust, the Subadviser is hereby appointed the Adviser's and the
Trust's agent and attorney-in-fact for the limited purposes of
executing account documentation, agreements, contracts and other
documents as the Subadviser shall be requested by brokers, dealers,
counterparties and other persons in connection with its management of
the Subadviser Assets. The Subadviser agrees to provide the Adviser and
the Trust with copies of any such agreements executed on behalf of the
Adviser or the Trust.
(e) BROKERAGE. The Subadviser is authorized, subject to the
supervision of the Adviser and the plenary authority of the Trust's
Board of Trustees, to establish and maintain accounts on behalf of the
Fund with, and place orders for the investment and reinvestment,
including without limitation purchase and sale of the Subadviser Assets
with or through, such persons, brokers (including, to the extent
permitted by applicable law, any broker affiliated with the Subadviser)
or dealers (collectively "Brokers") as Subadviser may elect and
negotiate commissions to be paid on such transactions. The Subadviser,
however, is not required to obtain the consent of the Adviser or the
Trust's Board of Trustees prior to establishing any such brokerage
account. The Subadviser shall place all orders for the purchase and
sale of portfolio investments for a Fund's account with Brokers
selected by the Subadviser. In the selection of such Brokers and the
placing of such orders, the Subadviser shall seek to obtain for the
Fund the most favorable price and execution available, except to the
extent it may be permitted to pay higher brokerage commissions for
brokerage and research services, as provided below. In using its
reasonable efforts to obtain for a Fund the most favorable price and
execution available, the Subadviser, bearing in mind the best interests
of each Fund at all times, shall consider all factors it deems
relevant, including price, the size of the transaction, the breadth and
nature of the market for the security, the difficulty of the execution,
the amount of the commission, if any, the timing of the transaction,
market prices and trends, the reputation, experience and financial
stability of the Broker involved, and the quality of service rendered
by the Broker in other transactions. Notwithstanding the foregoing,
neither the Trust, the Fund nor the Adviser shall instruct the
Subadviser to place orders with any particular Broker(s) with respect
to the Subadviser Assets. Subject to such policies as the Trustees may
determine, or as may be mutually agreed to by the Adviser and the
Subadviser, the Subadviser is authorized but not obligated to cause,
and shall not be deemed to have acted unlawfully or to have breached
any duty created by this Agreement or otherwise solely by reason of its
having caused, the Fund to pay a Broker that provides brokerage and
research services (within the meaning of Section 28(e) of the
Securities Exchange Act of 1934) to the Subadviser an amount of
commission for effecting a Subadviser Assets' investment transaction
that is in excess of the amount of commission that another Broker would
have charged for effecting that transaction if, but only if, the
Subadviser determines in good faith that such commission was reasonable
in relation to the value of the brokerage and research services
provided by such Broker viewed in terms of either that particular
transaction or the overall responsibility of the Subadviser with
respect to the accounts as to which it exercises investment discretion.
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It is recognized that the services provided by such Brokers may be
useful to the Subadviser in connection with the Subadviser's services
to other clients. On occasions when the Subadviser deems the purchase
or sale of a security to be in the best interests of the Fund with
respect to the Subadviser Assets as well as other clients of the
Subadviser, the Subadviser, to the extent permitted by applicable laws
and regulations, may, but shall be under no obligation to, aggregate
the securities to be sold or purchased in order to obtain the most
favorable price or lower brokerage commissions and efficient execution.
In such event, allocation of securities so sold or purchased, as well
as the expenses incurred in the transaction, will be made by the
Subadviser in the manner the Subadviser considers to be the most
equitable and consistent with its fiduciary obligations to each Fund
and to such other clients. It is recognized that in some cases, this
procedure may adversely affect the price paid or received by the Fund
or the size of the position obtainable for, or disposed of by, the Fund
with respect to the Subadviser Assets.
(f) SECURITIES TRANSACTIONS. The Subadviser and any affiliated
person of the Subadviser will not purchase securities or other
instruments from or sell securities or other instruments to the Fund;
provided, however, the Subadviser or any affiliated person of the
Subadviser may purchase securities or other instruments from or sell
securities or other instruments to the Fund if such transaction is
permissible under applicable laws and regulations, including, without
limitation, the 1940 Act and the Advisers Act and the rules and
regulations promulgated thereunder.
The Subadviser, on its own behalf and with respect to its Access
Persons (as defined in subsection (e) of Rule 17j-1 under the 1940
Act), agrees to observe and comply with Rule 17j-1 and its Code of
Ethics (which shall comply in all material respects with Rule 17j-1),
as the same may be amended from time to time. On at least an annual
basis, the Subadviser will comply with the reporting requirements of
Rule 17j-1, which may include either (i) certifying to the Adviser that
the Subadviser and its Access Persons have complied with the
Subadviser's Code of Ethics with respect to the Subadviser Assets or
(ii) identifying any violations which have occurred with respect to the
Subadviser Assets. The Subadviser will have also submitted its Code of
Ethics for its initial approval by the Board of Trustees no later than
the date of execution of this agreement and subsequently within six
months of any material change thereto.
(g) BOOKS AND RECORDS. The Subadviser shall maintain separate
detailed records as are required by applicable laws and regulations of
all matters hereunder pertaining to the Subadviser Assets (the "Fund's
Records"), including, without limitation, brokerage and other records
of all securities transactions. The Subadviser acknowledges that the
Fund's Records are property of the Trust; except to the extent that the
Subadviser is required to maintain the Fund's Records under the
Advisers Act or other applicable law and except that the Subadviser, at
its own expense, is entitled to make and keep a copy of the Fund's
Records for its internal files. The Fund's Records shall be available
to the Adviser or the Trust at any time upon reasonable request during
normal business hours and shall be available for telecopying promptly
to the Adviser during any day that the Fund is open for business as set
forth in the Prospectus.
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(h) INFORMATION CONCERNING SUBADVISER ASSETS AND SUBADVISER. From
time to time as the Adviser or the Trust reasonably may request in good
faith, the Subadviser will furnish the requesting party reports on
portfolio transactions and reports on the Subadviser Assets, all in
such reasonable detail as the parties may reasonably agree in good
faith. The Subadviser will also inform the Adviser in a timely manner
of material changes in portfolio managers responsible for Subadviser
Assets, any changes in the ownership or management of the Subadviser,
or of material changes in the control of the Subadviser. Upon the
Trust's or the Adviser's reasonable request, the Subadviser will make
available its officers and employees to meet with the Trust's Board of
Trustees to review the Subadviser Assets via telephone on a quarterly
basis and on a less frequent basis as agreed upon by the parties in
person.
Subject to the other provisions of this Agreement, the Subadviser
will also provide such information or perform such additional acts with
respect to the Subadviser Assets as are reasonably required for the
Trust or the Adviser to comply with their respective obligations under
applicable laws, including without limitation, the Code, the 1940 Act,
the Advisers Act, and the Securities Act, and any rule or regulation
thereunder.
(i) CUSTODY ARRANGEMENTS. The Trust or the Adviser shall notify the
Subadviser of the identities of its custodian banks and the custody
arrangements therewith with respect to the Subadviser Assets and shall
give the Subadviser written notice of any changes in such custodian
banks or custody arrangements. The Subadviser shall on each business
day provide the Adviser and the Trust's custodian such information as
the Adviser and the Trust's custodian may reasonably request in good
faith relating to all transactions concerning the Subadviser Assets.
The Trust shall instruct its custodian banks to (A) carry out all
investment instructions as may be directed by the Subadviser with
respect to the Subadviser Assets (which instructions may be orally
given if confirmed in writing); and (B) provide the Subadviser with all
operational information necessary for the Subadviser to trade the
Subadviser Assets on behalf of the Fund. The Subadviser shall have no
liability for the acts or omissions of the authorized custodian(s),
unless such act or omission is required by and taken in reliance upon
instructions given to the authorized custodian(s) by a representative
of the Subadviser properly authorized (pursuant to written instruction
by the Adviser) to give such instructions.
3. INDEPENDENT CONTRACTOR. In the performance of its services
hereunder, the Subadviser 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 Fund, the Trust or the Adviser in
any way or otherwise be deemed an agent of the Fund, the Trust or the Adviser.
4. EXPENSES. During the term of this Agreement, Subadviser will pay all
expenses incurred by it in connection with its activities under this Agreement.
The Subadviser shall, at its sole expense, employ or associate itself with such
persons as it believes to be particularly fitted to assist it in the execution
of its duties under this Agreement. The Subadviser shall not be responsible for
the Trust's, the Fund's or Adviser's expenses, which shall include, but not be
limited to, the cost of securities, commodities and other investments (including
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brokerage commissions and other transaction charges, if any) purchased for a
Fund and any losses incurred in connection therewith, expenses of holding or
carrying Subadviser Assets, including, without limitation, expenses of dividends
on stock borrowed to cover a short sale and interest, fees or other charges
incurred in connection with leverage and related borrowings with respect to the
Subadviser Assets, organizational and offering expenses (which include, but are
not limited to, out-of-pocket expenses, but not overhead or employee costs of
the Subadviser); expenses for legal, accounting and auditing services; taxes and
governmental fees; dues and expenses incurred in connection with membership in
investment company organizations; costs of printing and distributing shareholder
reports, proxy materials, prospectuses, stock certificates and distribution of
dividends; charges of the Fund's custodians and sub-custodians, administrators
and sub-administrators, registrars, transfer agents, dividend disbursing agents
and dividend reinvestment plan agents; payment for portfolio pricing services to
a pricing agent, if any; registration and filing fees of the SEC; expenses of
registering or qualifying securities of the Fund for sale in the various states;
freight and other charges in connection with the shipment of the Fund's
portfolio securities; fees and expenses of non-interested Trustees; salaries of
shareholder relations personnel; costs of shareholders meetings; insurance;
interest; brokerage costs; and litigation and other extraordinary or
non-recurring expenses. The Trust or the Adviser, as the case may be, shall
reimburse the Subadviser for any expenses of the Funds or the Adviser as may be
reasonably incurred by such Subadviser on behalf of the Fund or the Adviser. The
Subadviser shall keep and supply to the Trust and the Adviser reasonable records
of all such expenses.
5. COMPENSATION. For the services provided pursuant to this Agreement,
the Subadviser is entitled to the fee listed for the Fund on Exhibit A hereto.
Such fees will be computed daily and paid no later than the seventh (7th)
business day following the end of each month, from the Adviser, calculated at an
annual rate based on the Subadviser Assets' average daily net assets.
The method of determining the net asset value of the Subadviser Assets
for purposes hereof shall be the same as the method of determining net asset
value for purposes of establishing the offering and redemption price of the
shares of the Trust as described in the Fund's Prospectus. If this Agreement
shall be effective for only a portion of a month with respect to the Fund, the
aforesaid fee shall be prorated for the portion of such month during which this
Agreement is in effect for the Fund.
6. REPRESENTATIONS AND WARRANTIES OF SUBADVISER. The Subadviser
represents and warrants to the Adviser and the Trust as follows:
(a) The Subadviser is registered as an investment adviser under the
Advisers Act;
(b) The Subadviser is registered as a Commodity Trading Advisor
under the Commodity Exchange Act, as amended (the "CEA"), with the
Commodity Futures Trading Commission (the "CFTC"), or is not required
to file such registration;
(c) The Subadviser is a corporation duly organized and properly
registered and operating under the laws of the State of Delaware with
the power to own and possess its assets and carry on its business as it
is now being conducted and as proposed to be conducted hereunder;
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(d) The execution, delivery and performance by the Subadviser of
this Agreement are within the Subadviser's powers and have been duly
authorized by all necessary actions of its directors or shareholders,
and no action by, or in respect of, or filing with, any governmental
body, agency or official is required on the part of the Subadviser for
execution, delivery and performance by the Subadviser of this
Agreement, and the execution, delivery and performance by the
Subadviser of this Agreement do not contravene or constitute a
violation of, or a material default under, (i) any provision of
applicable law, rule or regulation, (ii) the Subadviser's governing
instruments, or (iii) any agreement, judgment, injunction, order,
decree or other instrument binding upon the Subadviser; and
(e) The Form ADV of the Subadviser previously provided to the
Adviser and the Trust is a true and complete copy of the form,
including that part or parts of the Form ADV filed with the SEC, that
part or parts maintained in the records of the Adviser, and/or that
part or parts provided or offered to clients, in each case as required
under the Advisers Act and rules thereunder, and the information
contained therein 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.
7. REPRESENTATIONS AND WARRANTIES OF ADVISER. The Adviser represents
and warrants to the Subadviser as follows:
(a) The Adviser is registered as an investment adviser under the
Advisers Act;
(b) The Adviser has filed a notice of exemption pursuant to Rule
4.14 under the CEA with the CFTC and the National Futures Association
or is not required to file such exemption;
(c) The Adviser is a business trust duly organized and validly
existing under the laws of the State of Delaware with the power to own
and possess its assets and carry on its business as it is now being
conducted and as proposed to be conducted hereunder;
(d) The execution, delivery and performance by the Adviser of this
Agreement are within the Adviser's powers and have been duly
authorized by all necessary action on the part of its directors,
shareholders or managing unitholder, and no action by, or in respect
of, or filing with, any governmental body, agency or official is
required on the part of the Adviser for the execution, delivery and
performance by the Adviser of this Agreement, and the execution,
delivery and performance by the Adviser of this Agreement do not
contravene or constitute a violation of, or a material default
under, (i) any provision of applicable law, rule or regulation, (ii)
the Adviser's governing instruments, or (iii) any agreement,
judgment, injunction, order, decree or other instrument binding upon
the Adviser;
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(e) The Form ADV of the Adviser previously provided to the
Subadviser and the Trust is a true and complete copy of the form,
including that part or parts of the Form ADV filed with the SEC, that
part or parts maintained in the records of the Adviser, and/or that
part or parts provided or offered to clients, in each case as required
under the Advisers Act and rules thereunder, and the information
contained therein 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;
(f) The Adviser acknowledges that it received a copy of the
Subadviser's Form ADV prior to the execution of this Agreement; and
(g) The Adviser and the Trust have duly entered into the Advisory
Agreement pursuant to which the Trust authorized the Adviser to
delegate certain of its duties under the Advisory Agreement to other
investment advisers, including without limitation, the appointment of a
subadviser with respect to assets of each of the Trust's mutual fund
series, including without limitation the Adviser's entering into and
performing this Agreement.
8. REPRESENTATIONS AND WARRANTIES OF THE TRUST. The Trust represents
and warrants to the Adviser and the Subadviser as follows:
(a) The Trust is a statutory trust duly formed and validly existing
under the laws of the State of Delaware with the power to own and
possess its assets and carry on its business as it is now being
conducted and as proposed to be conducted hereunder;
(b) The Trust is registered as an investment company under the 1940
Act and has elected to qualify and has qualified, together with the
Fund, as a regulated investment company under the Code, and the Fund's
shares are registered under the Securities Act;
(c) The execution, delivery and performance by the Trust of this
Agreement are within the Trust's powers and have been duly authorized
by all necessary action on the part of the Trust and its Board of
Trustees, and no action by, or in respect of, or filing with, any
governmental body, agency or official is required on the part of the
Trust for the execution, delivery and performance by the Adviser of
this Agreement, and the execution, delivery and performance by the
Trust of this Agreement do not contravene or constitute a default under
(i) any provision of applicable law, rule or regulation, (ii) the
Trust's governing instruments, or (iii) any agreement, judgment,
injunction, order, decree or other instrument binding upon the Trust;
and
(d) The Trust acknowledges that it received a copy of the
Subadviser's Form ADV prior to the execution of this Agreement.
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9. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; DUTY TO UPDATE
INFORMATION. All representations and warranties made by the Subadviser, the
Adviser and the Trust pursuant to the recitals above and Sections 6, 7 and 8,
respectively, shall survive for the duration of this Agreement and the parties
hereto shall promptly notify each other in writing upon becoming aware that any
of the foregoing representations and warranties are no longer true or accurate
in all material effects.
10. LIABILITY AND INDEMNIFICATION.
(a) LIABILITY. The Subadviser shall exercise its best judgment in
rendering its services in accordance with the terms of this Agreement,
but otherwise, in the absence of willful misfeasance, bad faith or
gross negligence on the part of the Subadviser or a reckless disregard
of its duties hereunder, the Subadviser, each of its affiliates and all
respective partners, officers, directors and employees ("Affiliates")
and each person, if any, who within the meaning of the Securities Act
controls the Subadviser ("Controlling Persons"), if any, shall not be
subject to any expenses or liability to the Adviser, any other
subadviser to a Fund, the Trust or a Fund or any of a Fund's
shareholders, in connection with the matters to which this Agreement
relates, including without limitation for any losses that may be
sustained in the purchase, holding or sale of Subadviser Assets. The
Adviser shall exercise its best judgment in rendering its obligations
in accordance with the terms of this Agreement, but otherwise (except
as set forth in Section 10(c) below), in the absence of willful
misfeasance, bad faith or gross negligence on the part of the Adviser
or a reckless disregard of its duties hereunder, the Adviser, any of
its Affiliates and each of the Adviser's Controlling Persons, if any,
shall not be subject to any liability to the Subadviser, for any act or
omission in the case of, or connected with, rendering services
hereunder or for any losses that may be sustained in the purchase,
holding or sale of Subadviser Assets. Notwithstanding the foregoing,
nothing herein shall relieve the Adviser and the Subadviser from any of
their obligations under applicable law, including, without limitation,
the federal and state securities laws and the CEA.
(b) INDEMNIFICATION. The Subadviser shall indemnify the Adviser, the
Trust and the Fund, and their respective Affiliates and Controlling
Persons for any liability and expenses, including without limitation
reasonable attorneys' fees and expenses, which the Adviser, the Trust
and/or the Fund and their respective Affiliates and Controlling Persons
may sustain as a result of the Subadviser's willful misfeasance, bad
faith, gross negligence, reckless disregard of its duties hereunder or
violation of applicable law, including, without limitation, the federal
and state securities laws or the CEA. The Adviser shall indemnify the
Subadviser, its Affiliates and its Controlling Persons, for any
liability and expenses, including without limitation reasonable
attorneys' fees and expenses, which may be sustained as a result of the
Adviser's willful misfeasance, bad faith, gross negligence, reckless
disregard of its duties hereunder or violation of applicable law,
including, without limitation, the federal and state securities laws or
the CEA.
The Trust shall indemnify the Subadviser, its Affiliates and its
Controlling Persons, for any liability and expenses, including without
limitation reasonable attorneys' fees and expenses, which may be
sustained as a result of the Trust's willful misfeasance, bad faith,
gross negligence, reckless disregard of its duties hereunder or
violation of applicable law, including, without limitation, the federal
and state securities laws or the CEA.
10
(c) The Subadviser shall not be liable to the Adviser for (i) any
acts of the Adviser or any other subadviser to a Fund with respect to
the portion of the assets of that Fund not managed by Subadviser, or
(ii) acts of the Subadviser which result from acts of the Adviser,
including, but not limited to, a failure of the Adviser to provide
accurate and current information with respect to any records maintained
by the Adviser or any other subadviser to a Fund, which records are not
also maintained by or otherwise available to the Subadviser upon
reasonable request. The Adviser agrees that Subadviser shall manage the
Subadviser Assets as if they were a separate operating Fund as set
forth in Section 2(b) of this Agreement. The Adviser shall indemnify
the Subadviser, its Affiliates and Controlling Persons from any
liability arising from the conduct of the Adviser and any other
subadviser with respect to the portion of the Fund's assets not
allocated to the Subadviser.
11. DURATION AND TERMINATION.
(a) DURATION. Unless sooner terminated, this Agreement shall
continue until May 1, 2008, with respect to any Fund covered by this
Agreement initially and, for any Fund subsequently added to this
Agreement, an initial period of no more than two years that terminates
on the second May 1st that occurs following the effective date of this
Agreement with respect to such Fund, and thereafter shall continue
automatically for successive annual periods with respect to each such
Fund, provided such continuance is specifically approved at least
annually by the Trust's Board of Trustees or vote of the lesser of (a)
67% of the shares of the Fund represented at a meeting if holders of
more than 50% of the outstanding shares of the Fund are present in
person or by proxy or (b) more than 50% of the outstanding shares of
the Fund; provided that in either event its continuance also is
approved by a majority of the Trust's Trustees who are not "interested
persons" (as defined in the ▇▇▇▇ ▇▇▇) of any party to this Agreement,
by vote cast in person at a meeting called for the purpose of voting on
such approval.
(b) TERMINATION. Notwithstanding whatever may be provided herein to
the contrary, this Agreement may be terminated at any time with respect
to the Fund, without payment of any penalty:
(i) By vote of a majority of the Trust's Board of Trustees, or
by "vote of a majority of the outstanding voting securities" of the
Fund (as defined in the 1940 Act), or by the Adviser, in each case,
upon not more than 60 days' written notice to the Subadviser;
(ii) By any party hereto immediately upon written notice to the
other parties in the event of a breach of any provision of this
Agreement by either of the other parties; or
(iii) By the Subadviser upon not more than 60 days' written
notice to the Adviser and the Trust.
11
This Agreement shall not be assigned (as such term is defined in
the ▇▇▇▇ ▇▇▇) and shall terminate automatically in the event of its
assignment or upon the termination of the Advisory Agreement.
12. DUTIES OF THE ADVISER. The Adviser shall continue to have
responsibility for all services to be provided to the Fund pursuant to the
Advisory Agreement and shall oversee and review the Subadviser's performance of
its duties under this Agreement. Nothing contained in this Agreement shall
obligate the Adviser to provide any funding or other support for the purpose of
directly or indirectly promoting investments in the Fund.
13. REFERENCE TO ADVISER AND SUBADVISER.
(a) Neither the Adviser nor any Affiliate or agent of the Adviser
shall make reference to or use the name of Subadviser or any of its
Affiliates, or any of their clients, except references concerning the
identity of and services provided by the Subadviser to a Fund, which
references shall not differ in substance from those included in the
Prospectus and this Agreement, in any advertising or promotional
materials without the prior approval of Subadviser, which approval
shall not be unreasonably withheld or delayed. The Adviser hereby
agrees to make all reasonable efforts to cause the Fund and any
Affiliate thereof to satisfy the foregoing obligation.
(b) Neither the Subadviser nor any Affiliate or agent of it shall
make reference to or use the name of the Adviser or any of its
Affiliates, or any of their clients, except references concerning the
identity of and services provided by the Adviser to a Fund or to the
Subadviser, which references shall not differ in substance from those
included in the Prospectus and this Agreement, in any advertising or
promotional materials without the prior approval of Adviser, which
approval shall not be unreasonably withheld or delayed. The Subadviser
hereby agrees to make all reasonable efforts to cause any Affiliate of
the Subadviser to satisfy the foregoing obligation.
14. AMENDMENT. This Agreement may be amended by mutual consent of the
parties, provided that the terms of any material amendment shall be approved by:
(a) the Trust's Board of Trustees or by a vote of a majority of the outstanding
voting securities of the Funds (as required by the 1940 Act), and (b) the vote
of a majority of those Trustees of the Trust who are not "interested persons" of
any party to this Agreement cast in person at a meeting called for the purpose
of voting on such approval, if such approval is required by applicable law.
15. CONFIDENTIALITY. Subject to the duties of the Adviser, the Trust
and the Subadviser to comply with applicable law, including any demand of any
regulatory or taxing authority having jurisdiction, the parties hereto shall
treat as confidential and shall not disclose any and all information pertaining
to the Fund and the actions of the Subadviser, the Adviser and the Fund in
respect thereof; except to the extent:
(a) AUTHORIZED. The Adviser or the Trust has authorized such
disclosure;
(b) COURT OR REGULATORY AUTHORITY. Disclosure of such information is
expressly required or requested by a court or other tribunal of
competent jurisdiction or applicable federal or state regulatory
authorities;
12
(c) PUBLICLY KNOWN WITHOUT BREACH. Such information becomes known to
the general public without a breach of this Agreement or a similar
confidential disclosure agreement regarding such information;
(d) ALREADY KNOWN. Such information already was known by the party
prior to the date hereof;
(e) RECEIVED FROM THIRD PARTY. Such information was or is hereafter
rightfully received by the party from a third party (expressly
excluding the Fund's custodian, prime broker and administrator) without
restriction on its disclosure and without breach of this Agreement or
of a similar confidential disclosure agreement regarding them; or
(f) INDEPENDENTLY DEVELOPED. The party independently developed such
information.
16. NOTICE. Any notice that is required to be given by the parties to
each other under the terms of this Agreement shall be in writing, delivered, or
mailed postpaid to the other parties, or transmitted by facsimile with
acknowledgment of receipt, to the parties at the following addresses or
facsimile numbers, which may from time to time be changed by the parties by
notice to the other party:
(a) If to the Subadviser:
▇▇▇▇▇▇ Capital Management, Inc.
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ - ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: Legal Department
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
(b) If to the Adviser:
Nationwide Fund Advisors
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: Legal Department
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
(c) If to the Trust:
Nationwide Variable Insurance Trust
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: Legal Department
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
13
17. JURISDICTION. This Agreement shall be governed by and construed in
accordance with substantive laws of the State of Delaware without reference to
choice of law principles thereof and in accordance with the 1940 Act. In the
case of any conflict, the 1940 Act shall control.
18. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, all of which shall
together constitute one and the same instrument.
19. CERTAIN DEFINITIONS. For the purposes of this Agreement and except
as otherwise provided herein, "interested person," "affiliated person," 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 SEC.
20. CAPTIONS. The captions herein are included for convenience of
reference only and shall be ignored in the construction or interpretation
hereof.
21. SEVERABILITY. If any provision of this Agreement shall be held or
made invalid by a court decision or applicable law, the remainder of the
Agreement shall not be affected adversely and shall remain in full force and
effect.
22. ENTIRE AGREEMENT. This Agreement, together with all exhibits,
attachments and appendices, contains the entire understanding and agreement of
the parties with respect to the subject matter hereof
23. NATIONWIDE VARIABLE INSURANCE TRUST AND ITS TRUSTEES. The terms
"Nationwide Variable Insurance Trust" and the "Trustees of Nationwide Variable
Insurance Trust" refer respectively to the Trust created and the Trustees, as
trustees but not individually or personally, acting from time to time under the
Declaration of Trust made and dated as of September 30, 2004, as has been or may
be amended and/or restated from time to time, and to which reference is hereby
made.
[The remainder of this page is intentionally left blank.]
14
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the day and year first written above.
TRUST
NATIONWIDE VARIABLE INSURANCE TRUST
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------
ADVISER
NATIONWIDE FUND ADVISORS
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------
SUBADVISER
▇▇▇▇▇▇ CAPITAL MANAGEMENT, INC.
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------
15
EXHIBIT A
SUBADVISORY AGREEMENT
AMONG
NATIONWIDE FUND ADVISORS,
NATIONWIDE VARIABLE INSURANCE TRUST
AND ▇▇▇▇▇▇ CAPITAL MANAGEMENT, INC.
Effective May 1, 2007*
FUNDS OF THE TRUST SUBADVISORY FEES
-------------------------------- ------------------------------------
NVIT Enhanced Income Fund 0.10% on assets up to $500 million
0.0975 % on assets of $500
million and more but less
than $1 billion
0.0925% on assets of $1 billion and
more but less than $3 billion
* As initially approved at the January 11, 2007 Board Meeting and ratified at
the March 2007 Board Meeting.
16
EXHIBIT B
SUBADVISORY AGREEMENT AMONG
NATIONWIDE VARIABLE INSURANCE TRUST,
NATIONWIDE FUND ADVISORS AND
▇▇▇▇▇▇ CAPITAL MANAGEMENT, INC.
Effective May 1, 2007
In connection with securities transactions for a Fund, the Subadviser
that is (or whose affiliated person is) entering into the transaction, and any
other investment manager that is advising an affiliate of the Fund (or portion
of the Fund) (collectively, the "Managers" for the purposes of this Exhibit)
entering into the transaction are prohibited from consulting with each other
concerning transactions for the Fund in securities or other assets and, if both
Managers are responsible for providing investment advice to the Fund, the
Manager's responsibility in providing advice is expressly limited to a discrete
portion of the Fund's portfolio that it manages.
This prohibition does not apply to communications by the Adviser in
connection with the Adviser's (i) overall supervisory responsibility for the
general management and investment of the Fund's assets; (ii) determination of
the allocation of assets among the Manager(s), if any; and (iii) investment
discretion with respect to the investment of Fund assets not otherwise assigned
to a Manager.
TRUST
NATIONWIDE VARIABLE INSURANCE TRUST
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------
ADVISER
NATIONWIDE FUND ADVISORS
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------
SUBADVISER
▇▇▇▇▇▇ CAPITAL MANAGEMENT, INC.
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------