The agreement should specify the nature and frequency of written and oral reports. Reports are generally quarterly and should include general market conditions, all account activity, outstanding account assets and account performance from relevant repositories. The agreement should also provide for additional reports on appropriate request. The agreement should stipulate that the advisor provides his services in accordance with all laws and regulations. The agreement may also specify specific requirements, such as the registration of the advisor under the Federal Investment Advisors Act 1940 or under state law. Each investment manager has been appointed under an investment management agreement with the management company and the company, which can be modified from time to time to ensure the day-to-day management of the company`s investments, subject to overall supervision and responsibility of the management company. Agreements between an investment advisor and his client will be translated into an investment management agreement. While the advisor usually announces his or her own form of agreement, the client must make certain decisions, can negotiate certain points and must in any case understand the fundamental terms of the agreement. If you are the customer, some of the basic conditions that you want to keep in mind are: the agreement should describe how the advisor will trade assets on the account as soon as a decision is made to buy or sell. If the advisor acts through a related broker, you should get some certainty that you will get the best total price. The agreement will often allow the consultant to obtain research or brokerage services from the brokers he uses.

This is permissible, but you should be aware that the advisor will have a financial interest in using these brokers. You can also order the advisor to act through a particular broker, but this can increase your trading fees. The agreement should consist of whether you or the advisor is competent for non-voting rights regarding the securities on the account. Some councillors do not like to elect substitutes because of the administrative burden. However, proxies can be important (for example. B a vote on an upcoming acquisition) and the advisor is often in a better position to assess the issues and ensure that your vote is recorded on time. For similar reasons, you may also require the advisor to bring a class action on your behalf. The investment management agreement expired on February 28, 2014 and KBR no longer has an investment manager of the company on the same date. The agreement or annex to the agreement should include investment guidelines under which the account is managed.

These guidelines should not only define the account`s investment objective (for example. B the valuation of capital), but also all investment allocations (. B for example, a target of 60% equity and 40% debt) and investment restrictions (for example, no more. B of 20% in foreign securities, only investment degree debts, no derivatives). You would like to discuss with the advisor the initial directions that you must follow in the current circumstances and risk tolerances, and review these guidelines on a regular basis. Investment rules are the primary means of monitoring the consultant`s activities, so you should make sure they are clear and comfortable with them. As of the date of this prospectus, the investment manager should be considered a representative of an independent entity acting in connection with the ordinary transaction, taking into account, among other things, the nature of his activities and the terms of his appointment and his role in the investment management agreement.