INVESTMENT MANAGEMENT AGREEMENT
INVESTMENT MANAGEMENT AGREEMENT, dated as of ______________, by and between
AMSTAR INVESTMENT MANAGEMENT, LLC, a New York Limited Liability Company (the
"Adviser"), and AMSTAR INVESTMENT TRUST, a Delaware business trust created
pursuant to a Declaration of Trust dated June 22, 1999, as amended from time to
time (the "Trust").
WHEREAS, the Trust is an open-end diversified management investment company
registered under the Investment Company Act of 1940, as amended (the "1940
Act"); and
WHEREAS, shares of beneficial interest in the Trust are divided into
separate series (each, along with any series which may in the future be
established, a "Fund"); and
WHEREAS, the Trust desires to avail itself of the services, information,
advice, assistance and facilities of an investment advisor and to have an
investment advisor perform for it various investment advisory and research
services and other management services; and
WHEREAS, the Adviser is an investment advisor registered under the
Investment Advisers Act of 1940, as amended, and desires to provide investment
advisory services to the Trust;
NOW THEREFORE, in consideration of the terms and conditions hereinafter set
forth, it is agreed as follows:
1. EMPLOYMENT OF THE ADVISER. The Trust hereby employs the Adviser to
manage the investment and reinvestment of the assets of each Fund subject to the
control and direction of the Trust's Board of Trustees, for the period on the
terms hereinafter set forth. The Adviser hereby accepts such employment and
agrees during such period to render the services and to assume the obligations
herein set forth for the compensation herein provided. The Adviser shall for all
purposes herein be deemed to be independent contractor and shall, except as
expressly provided or authorized (whether herein or otherwise), have no
authority to act for or represent the Trust in any way or otherwise be deemed an
agent of the Trust.
2. OBLIGATIONS OF AND SERVICES TO BE PROVIDED BY THE ADVISER. In
providing the services and assuming the obligations set forth herein, the
Adviser may, at its expense, employ one or more sub-advisers for any Fund. Any
agreement between the Adviser and a sub-adviser shall be subject to the renewal,
termination and amendment provisions of paragraph 10 hereof. The Adviser
undertakes to provide the following services and to assume the following
obligations:
a) The Adviser will manage the investment and reinvestment of the assets
of each Fund, subject to and in accordance with the respective
investment objective and policies of each Fund and any directions
which the Trust's Board of Trustees may issue from time to time. In
pursuance of the foregoing, the Adviser may engage separate investment
advisers ("sub-adviser(s)") to make all determinations with respect to
the investment of the assets of each Fund, to effect the purchase and
sale of portfolio securities and to take such steps as may be
necessary to implement the same. Such determination and services by
each sub-adviser shall also include determining the manner in which
voting rights, rights to consent to corporate action and any other
rights pertaining to the portfolio securities shall be exercised. The
Adviser shall, and shall cause each sub-adviser to, render regular
reports to the Trust's Board of Trustees concerning the Trust's and
each Fund's investment activities.
b) The Adviser shall, or shall cause the respective sub-adviser(s) to
place orders for the execution of all portfolio transactions, in the
name of the respective Fund and in accordance with the policies with
respect thereto set forth in the Trust's registration statements under
the 1940 Act and the Securities Act of 1933, as such registration
statements may be amended from time to time. In connection with the
placement of orders for the execution of portfolio transactions, the
Adviser shall create and maintain (or cause the sub-advisers to create
and maintain) all necessary brokerage records for each Fund, which
records shall comply with all applicable laws, rules and regulations,
including but not limited to records required by Section 31(a) of the
1940 Act. All records shall be the property of the Trust and shall be
available for inspection and use by the Securities and Exchange
Commission (the "SEC"), the Trust or any person retained by the Trust.
Where applicable, such records shall be maintained by the Adviser (or
sub-adviser) for the periods and in the places required by Rule 31a -2
under the 1940 Act.
c) In the event of any reorganization or other change in the Adviser, Its
investment principals, supervisors or members of its investment (or
comparable) committee, the Adviser shall give the Trust's Board of
Trustees written notice of such reorganization or change within a
reasonable time (but not later than 30 days) after such reorganization
or change.
d) The Adviser shall bear its expenses of providing services to the Trust
pursuant to this Agreement except such expenses as are undertaken by
the Trust. In addition, the Adviser shall pay the salaries and fees,
if any, of all Trustees, officers and employees of the Trust who are
affiliated persons, as defined in Section 2(a)(3) of the 1940 Act, of
the Adviser.
e) The Adviser will manage, or will cause the sub-advisers to manage, the
Fund assets and the investment and reinvestment of such assets so as
to comply with the provisions of the 1940 Act and with Subchapter M of
the Internal Revenue Code of 1986, as amended.
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3. EXPENSES. The Trust shall pay the expenses of its operation, including
but not limited to (i) charges and expenses for Trust accounting, pricing and
appraisal services and related overhead, (ii) the charges and expenses of the
Trust's auditors; (iii) the charges and expenses of any custodian, transfer
agent, plan agent, dividend disbursing agent and registrar appointed by the
Trust with respect to the Funds; (iv) brokers' commissions, and issue and
transfer taxes, chargeable to the Trust in connection with securities
transactions to which the Trust is a party; (v) insurance premiums, interest
charges, dues and fees for Trust membership in trade associations and all taxes
and fees payable by the Trust to federal, state or other governmental agencies;
(vi) fees and expenses involved in registering and maintaining registrations of
the Trust and/or shares of the Trust with the SEC, state or blue sky securities
agencies and foreign countries, including the preparation of Prospectuses and
Statements of Additional Information for filing with the SEC; (vii) all expenses
of meetings of Trustees and of shareholders of the Trust and of preparing,
printing and distributing prospectuses, notices, proxy statements and all
reports to shareholders and to governmental agencies; (viii) charges and
expenses of legal counsel to the Trust; (ix) compensation of Trustees of the
Trust; and (x) interest on borrowed money, if any.
4. COMPENSATION OF THE ADVISER.
a) As compensation for the services rendered and obligations assumed
hereunder by the Adviser, the Trust shall pay to the Adviser monthly a
fee that is equal on an annual basis to that percentage of the average
daily net assets of each Fund set forth on Schedule 1 attached hereto
(and with respect to any future Fund, such percentage as the Trust and
the Adviser may agree to from time to time). Such fee shall be
computed and accrued daily. If the Adviser serves as investment
adviser for less than the whole of any period specified in this
Section 4a, the compensation to the Adviser shall be prorated. For
purposes of calculating the Adviser's fee, the daily value of each
Fund's net assets shall be computed by the same method as the Trust
uses to compute the net asset value of that Fund.
b) The Adviser will pay all fees owing to each sub-adviser, and the Trust
shall not be obligated to the sub-advisers in any manner with respect
to the compensation of such sub-advisers.
c) The Adviser reserves the right to waive all or a part of its fee.
5. ACTIVITIES OF THE ADVISER. The services of the Adviser to the Trust
hereunder are not to be deemed exclusive, and the Adviser shall be free to
render similar services to others. It is understood that the Trustees and
officers of the Trust are or may become interested in the Adviser as
stockholders, officers or otherwise, and that stockholders and officers of the
Adviser are or may become similarly interested in the Trust, and that the
Adviser may become interested in the Trust as a shareholder or otherwise.
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6. USE OF NAMES. The Trust will not use the name of the Adviser in any
prospectus, sales literature or other material relating to the Trust in any
manner not approved prior thereto by the Adviser; except that the Trust may use
such name in any document which merely refers in accurate terms to its
appointment hereunder or in any situation which is required by the SEC or a
state securities commission; and provided further, that in no event shall such
approval be unreasonably withheld. The Adviser will not use the name of the
Trust in any material relating to the Adviser in any manner not approved prior
thereto by the Trust; except that the Adviser may use such name in any document
which merely refers in accurate terms to the appointment of the Adviser
hereunder or in any situation which is required by the SEC or a state securities
commission. In all other cases, the parties may use such names to the extent
that the use is approved by the party named, it being agreed that in no event
shall such approval be unreasonably withheld.
The Trustees of the Trust acknowledge that the Adviser has reserved for
itself the rights to the name "Amstar" (or any similar names) and that use by
the Trust of such name shall continue only with the continuing consent of the
Adviser, which consent may be withdrawn at any time, effective immediately, upon
written notice thereof to the Trust.
7. LIMITATION OF LIABILITY OF THE ADVISER.
a) Absent willful misfeasance, bad faith, gross negligence, or reckless
disregard of obligations or duties hereunder on the part of the
Adviser, the Adviser shall not be subject to liability to the Trust or
to any shareholder in any Fund for any act or omission in the course
of, or connected with, rendering services hereunder or for any losses
that may be sustained in the purchase, holding or sale of any
security. As used in this Section 7, the term "Adviser" shall include
Amstar and/or any of its affiliates and the directors, officers and
employees of Amstar and/or any of its affiliates.
b) The Trust will indemnify the Adviser against, and hold it harmless
from, any and all losses, claims, damages, liabilities or expenses
(including reasonable counsel fees and expenses) resulting from acts
or omissions of the Trust. Indemnification shall be made only after:
(i) a final decision on the merits by a court or other body before
whom the proceeding was brought that the Trust was liable for the
damages claimed or (ii) in the absence of such a decision, a
reasonable determination based upon a review of the facts, that the
Trust was liable for the damages claimed, which determination shall be
made by either (a) the vote of a majority of a quorum of Trustees of
the Trust who are neither "interested persons" of the Trust nor
parties to the proceeding "disinterested non- party Trustees") or (b)
an independent legal counsel satisfactory to the parties hereto, whose
determination shall be set forth in a written opinion. The Adviser
shall be entitled to advances from the Trust for payment of the
reasonable expenses incurred by it in connection with the matter as to
which it is seeking indemnification in the manner and to the fullest
extent that would be permissible
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under the applicable provisions of New York Law. The Adviser shall
provide to the Trust a written affirmation of its good faith belief
that the standard of conduct necessary for indemnification under such
law has been met and a written undertaking to repay any such advance
if it should ultimately be determined that the standard of conduct has
not been met. In addition, at least one of the following additional
conditions shall be met: (i) the Adviser shall provide security in
form and amount acceptable to the Trust for its undertaking; (ii) the
Trust is insured against losses arising by reason of the advance; or
(iii) a majority of a quorum of the Trustees of the Trust, the members
of which a majority are disinterested non-party Trustees, or
independent legal counsel in a written opinion, shall have determined,
based on a review of facts readily available to the Trust at the time
the advance is proposed to be made, that there is reason to believe
that the Adviser will ultimately be found to be entitled to
indemnification.
8. LIMITATION OF TRUST'S LIABILITY. The Adviser acknowledges that it has
received notice of and accepts the limitations upon the Trust's
liability set forth in its Declaration of Trust. The Adviser agrees
that the Trust's obligations hereunder in any case shall be limited to
the Trust and to its assets and that the Adviser shall not seek
satisfaction of any such obligation from the holders of the shares of
any Fund nor from any Trustee, officer, employee or agent of the
Trust.
9. FORCE MAJEURE. The Adviser shall not be liable for delays or errors
occurring by reason of circumstances beyond its control, including but
not limited to acts of civil or military authority, national
emergencies, work stoppages, fire, flood, catastrophe, acts of God,
insurrection, war, riot, or failure of communication or power supply.
In the event of equipment breakdowns beyond its control, the Adviser
shall take reasonable steps to minimize service interruptions but
shall have no liability with respect thereto.
10. RENEWAL, TERMINATION AND AMENDMENT.
a) This Agreement shall continue in effect, unless sooner terminated as
hereinafter provided, for a period of two years from the date hereof
and it shall continue indefinitely thereafter as to each Fund,
provided that such continuance is specifically approved by the parties
hereto and, in addition, at least annually by (i) the vote of holders
of a majority of the outstanding voting securities of the affected
Fund or by vote of a majority of the Trust's Board of Trustees and
(ii) by the vote of a majority of the Trustees who are not parties to
this Agreement or interested persons of the Adviser, cast in person at
a meeting called for the purpose of voting on such approval.
b) This Agreement may be terminated at any time, with respect to any
Fund(s), without payment of any penalty, by the Trust's Board of
Trustees or by a vote of the majority of the outstanding voting
securities of the affected Fund(s) upon
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60 days' prior written notice to the Adviser and by the Adviser upon
60 days' prior written notice to the Trust.
c) This Agreement may be amended at any time by the parties hereto,
subject to approval by the Trust's Board of Trustees and, if required
by applicable SEC rules and regulations, a vote of the majority of the
outstanding voting securities of any Fund affected by such change.
This Agreement shall terminate automatically in the event of its
assignment.
d) The terms "assignment," "interested persons" and "majority of the
outstanding voting securities" shall have the meaning set forth for
such terms in the 1940 Act.
11. SEVERABILITY. If any provision of this Agreement shall be held or made
invalid by a court decision, statute, rule or otherwise, the remainder of this
Agreement shall not be affected thereby.
12. MISCELLANEOUS. Each party agrees to perform such further actions and
execute such further documents as are necessary to effectuate the purposes
hereof. This Agreement shall be construed and enforced in accordance with and
governed by the laws of the State of New York. The captions in this Agreement
are included for convenience only and in no way define or delimit any of the
provisions hereof or otherwise affect their construction or effect.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and delivered in their names and on their behalf by the undersigned,
thereunto duly authorized, all as of the day and year first above written.
Pursuant to the Trust's Declaration of Trust, dated as of June 22, 1999, the
obligations of this Agreement are not binding upon any of the Trustees or
shareholders of the Trust individually, but bind only the Trust estate.
AMSTAR INVESTMENT TRUST
By:_____________________________________
AMSTAR INVESTMENT MANAGEMENT, LLC
By:_____________________________________
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SCHEDULE 1
INTERNATIONAL EQUITY FUND - 1.00% of average daily net assets
HIGH YIELD FUND - 0.85% of average daily net assets
VALUE FUND - 0.85% of average daily net assets
TOTAL RETURN FUND - 0.60% of average daily net assets
