HomeMy WebLinkAboutC-6262 - Investment Management Agreement (Institutional Client, Non-ERISA)Chandler Liquid Asset Management, Inc. (Chandler) is hereby
retained as Investment Adviser by City of Newport Beach (Client)
on the terms and conditions set forth herein.
1. Term. The term of this Agreement shall commence
September 1, 1993 and shall continue until this Agreement is
terminated effective upon receipt of notice of termination in
writing delivered by the terminating party.
2. Fees. Client shall compensate Chandler quarterly an
amount calculated on the average market value of Client's
portfolio, in accordance with the following schedule:
Annual Investment Management Fee
.15 of 1% on all assets
Minimum annual fee is $7,500.
The fees expressed above do not include any custody fees which
may be charged by Client's bank or other third party custodian.
Fees shall be prorated to the effective date of termination on
the basis of actual days elapsed, and any unearned portion of
prepaid fees shall be refunded. Client is not required to pay
any start -up or closing fees; there are no penalty fees.
3. Client Representative. In its capacity as investment
manager, Chandler shall receive all instructions, directions and
other communications on Client's behalf respecting Client's
account from Mr. Richard C. Kurth or Mr. Dennis C. Danner
(Representative). Chandler is hereby authorized to rely and act
upon all such instructions, directions and communications from
such Representative or any agent of such Representative.
4. Account Questionnaire. Client shall complete and
return the account questionnaire regarding mechanics and
administration of Client's account and setting forth Client's
investment purpose and objectives, which is attached hereto as
Exhibit A.
5. Authority of Chandler. Chandler is hereby granted full
discretion to invest and reinvest all assets under its management
in any type of security it deems appropriate, subject to the
instructions given or guidelines set by Representative.
(Investment Policy and Questionnaire attached).
4350 Executive Drive, Suite 103, Sun Diego, CA 92121 - Telephone (619) 546 -3737 hAX (619) 546 -3741
Chandler has authority to act as Client's agent in dealing with
and giving orders to issuers of securities and broker - dealers,
provided such action is taken by Chandler as agent of Client, in
Client's name.
6. Notices. Any notice shall be mailed to Client at the
following address:
3300 Newport Boulevard
P. O. Box 1768
Newport Beach, CA 92659 -1768
and to Chandler at the following address:
4350 Executive Drive
Suite 103
San Diego, CA 92121
7. Custody of Securities and Funds. Chandler shall not
have custody or possession of the funds or securities which
Client has placed under its management. Client may appoint a
custodian to take and have possession of its assets.
8. Investment Advice. Client recognizes that the
opinions,-recommendations and actions of Chandler will be based
on information deemed by it to be reliable, but not guaranteed to
or by it. Provided that Chandler acts in good faith, Client
agrees that Chandler will not in any way be liable for any error
in judgment or for any act or omission, except as may otherwise
be provided for under the Federal Securities laws or other
applicable laws.
9. Payment of Commissions. Chandler may place buy and
sell orders with or through such brokers or dealers as it may
select. It is the policy and practice of Chandler to strive for
the best price and execution and for commission and discounts
which are competitive in relation to the value of the transaction
and which comply with Section 28(e) of the Securities and
Exchange Act. Nevertheless, it is understood that Chandler may
pay a commission on transactions in excess of the amount another
broker or dealer may charge, and that Chandler makes no warranty
or representation regarding commissions paid on transactions
hereunder.
10. Other Clients. It is further understood that Chandler
may be acting in a similar capacity for other institutional and
individual clients, and that investments and reinvestments for
client's portfolio may differ from those made or recommended with
respect to other accounts and clients even though the investment
objectives may be the same or similar. Accordingly, it is agreed
that Chandler will have no obligation to purchase or sell for
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Client's account any securities which it may purchase or sell for
other clients.
11. Miscellaneous. This Agreement may not be assigned by
Chandler without Client's consent, but may be amended at any time
by mutual agreement in writing. Chandler agrees to notify Client
of any change in the ownership of the corporation within 30 days
of such change.
12. Governing Law. It is understood that this Agreement
shall be governed by and construed under and in accordance with
the laws of the State of California.
13. Severability. Any provision of this Agreement which is
prohibited or unenforceable shall be ineffective only to the
extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof.
14. Receipt of Brochure. Client has received the
disclosure statement or "brochure" required to be delivered
pursuant to Rule 204 -3 of the Investment Advisors Act of 1940
(Brochure). Client understands that it has the right to
terminate this Agreement without penalty within five (5) days
after entering into this Agreement.
THE CITY OF NEWPORT BEACH, C„IFORNIA
By: '' � //7
Richard C. Kurth to
Deputy Finance Director
CHANDLER LIQUID ASSET MANAGEMENT, INC.
a California corporation
By: G..r.�� d/ i
Kay Ch ndler Date
Presi vnt
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