349.915 - Contents of agreement. - Nevada Statutes

349.915  Contents of agreement.  In the agreement the management company shall agree to invest the money and other assets in the Account for Venture Capital consistent with the purposes of NRS 349.900 to 349.929, inclusive. In addition, the agreement must:

      1.  Specify the length of the term of the agreement, the compensation to be paid the management company and the method by which the agreement may be terminated before the expiration of its term.

      2.  Impose a fiduciary duty on the management company in the administration of the Account for Venture Capital, including the preservation and protection of the money and other assets in the Account for Venture Capital before their investment.

      3.  Prohibit the Director from participating in the decisions regarding the investment of the money and other assets in the Account for Venture Capital.

      4.  Specify the grounds for terminating the agreement for cause other than the poor performance of certain enterprises in which the money is invested.

      5.  Authorize the Director or the management company to terminate the agreement without cause upon written notice to the other party. The amount of time necessary for notice may be negotiated between the Director and the management company.

      6.  Authorize the Director to require the management company to adhere to certain objectives and policies for investment applicable to the Account for Venture Capital to ensure the achievement of the goals prescribed in NRS 349.900, and to terminate the contract if the management company fails to adhere to those objectives and policies.

      7.  Prohibit the management company, upon termination of the agreement for any reason, from making any additional investment for the Account for Venture Capital after the date of notice of the termination, unless the investment is authorized in writing by the Director.

      (Added to NRS by 1987, 1406)