California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 2 - Corporate Securities
Article 4 - Standards for the Exercise of the Commissioner's Authority
Subarticle 9 - Real Estate Investment Trusts
Section 260.140.94 - Investment Advisory Contract

The declaration of trust shall provide for the following. It is the duty of the trustees to evaluate the performance of the advisor before entering into or renewing an advisory contract. The criteria used in such evaluation shall be reflected in the minutes of such meeting. Each contract for the services of an advisor entered into by the trustees shall have a term of no more than one year. Each advisory contract shall be terminable by a majority of the trustees who are not affiliated with, officers, directors or employees of the investment advisor or any affiliated business entity of such advisor. Each advisory contract shall be terminable by the advisor. Termination may be without cause. At least 60 days written notice shall be given by the party wishing to terminate the contract. In the event of the termination of such contract, the advisor will cooperate with the trust and take all reasonable steps requested to assist the trustees in making an orderly transition of the advisory function. The qualifications of the advisor shall be set forth in the prospectus relating to the initial public offering of the shares and the trustees shall determine that any successor advisor possesses sufficient qualifications (i) to perform the advisory function for the trust, and (ii) to justify the compensation provided for in its contract with the trust.

1. Amendment filed 5-14-69; effective thirtieth day thereafter (Register 69, No. 20).
2. Repealer and renumbering and amendment of former Section 260.140.96 to Section 260.140.94 filed 1-28-82; effective thirtieth day thereafter (Register 82, No. 5).

Note: Authority cited: Section 25610, Corporations Code. Reference: Section 25140, Corporations Code.