Page 1
DG Investor Series 3/1/97
Exhibit 5(i)
INVESTMENT ADVISORY CONTRACT
This Contract is made this 1st day of March, 1997, between ParkSouth
Corporation, a adviser_org_form = corporation "adviser_state " "" Mississippi
corporation having its principal place of business in Jackson, Mississippi (the
"Adviser"), and DG Investor Series, aError! Reference source not found.=
corporation "NULL" "" Massachusetts business trust having its principal place of
business in Pittsburgh, Pennsylvania (the "Trust").
WHEREAS the Trust is an open-end management investment company as that
term is defined in the Investment Company Act of 1940, as amended, and is
registered as such with the Securities and Exchange Commission; and
WHEREAS Adviser is engaged in the business of rendering investment
advisory and management services.
NOW, THEREFORE, the parties hereto, intending to be legally bound,
hereby agree as follows:
1. The Trust hereby appoints Adviser as Investment Adviser for each of
the portfolios ("Funds") of the Trust which executes an exhibit to this
Contract, and Adviser accepts the appointments. Subject to the direction of the
Trustees, Adviser shall provide investment research and supervision of the
investments of the Funds and conduct a continuous program of investment
evaluation and of appropriate sale or other disposition and reinvestment of each
Fund's assets.
2. Adviser, in its supervision of the investments of each of the Funds
will be guided by each of the Fund's investment objective and policies and the
provisions and restrictions contained in the org_form=corporation "Articles of
Incorporation" "Declaration of Trust" Declaration of Trust and By-Laws of the
Trust and as set forth in the Registration Statements and exhibits as may be on
file with the Securities and Exchange Commission.
3. Each Fund shall pay or cause to be paid all of its own expenses and
its allocable share of Trust expenses, including, without limitation, the
expenses of organizing the Trust and continuing its existence; fees and expenses
of Trustees and officers of the Trust; fees for investment advisory services and
administrative personnel and services; expenses incurred in the distribution of
its shares ("Shares"), including expenses of administrative support services;
fees and expenses of preparing and printing its Registration Statements under
the Securities Act of 1933 and the Investment Company Act of 1940, as amended,
and any amendments thereto; expenses of registering and qualifying the Trust,
the Funds, and Shares of the Funds under federal and state laws and regulations;
expenses of preparing, printing, and distributing prospectuses (and any
amendments thereto) to shareholders; interest expense, taxes, fees, and
commissions of every kind; expenses of issue (including cost of Share
certificates), purchase, repurchase, and redemption of Shares, including
expenses attributable to a program of periodic issue; charges and expenses of
custodians, transfer agents, dividend disbursing agents, shareholder servicing
agents, and registrars; printing and mailing costs, auditing, accounting, and
legal expenses; reports to shareholders and governmental officers and
commissions; expenses of meetings of Trustees and shareholders and proxy
solicitations therefor; insurance expenses; association membership dues and such
nonrecurring items as may arise, including all losses and liabilities incurred
in administering the Trust and the Funds. Each Fund will also pay its allocable
share of such extraordinary expenses as may arise including expenses incurred in
connection with litigation, proceedings, and claims and the legal obligations of
the Trust to indemnify its officers and Trustees and agents with respect
thereto.
4. Each of the Funds shall pay to Adviser, for all services
rendered to each Fund by Adviser hereunder, the fees set forth in the exhibits
attached hereto.
5. The net asset value of each Fund's Shares as used herein will
be calculated to the nearest 1/10th of one cent.
6. The Adviser may from time to time and for such periods as it deems
appropriate reduce its compensation (and, if appropriate, assume expenses of one
or more of the Funds) to the extent that any Fund's expenses exceed such lower
expense limitation as the Adviser may, by notice to the Fund, voluntarily
declare to be effective.
7. This Contract shall begin for each Fund as of the date of execution
of the applicable exhibit and shall continue in effect with respect to each Fund
presently set forth on an exhibit (and any subsequent Funds added pursuant to an
exhibit during the initial term of this Contract) for two years from the date of
this Contract set forth above and thereafter for successive periods of one year,
subject to the provisions for termination and all of the other terms and
conditions hereof if: (a) such continuation shall be specifically approved at
least annually by the vote of a majority of the Trustees of the Trust, including
a majority of the Trustees who are not parties to this Contract or interested
persons of any such party cast in person at a meeting called for that purpose;
and (b) Adviser shall not have notified a Fund in writing at least sixty (60)
days prior to the anniversary date of this Contract in any year thereafter that
it does not desire such continuation with respect to that Fund. If a Fund is
added after the first approval by the Trustees as described above, this Contract
will be effective as to that Fund upon execution of the applicable exhibit and
will continue in effect until the next annual approval of this Contract by the
Trustees and thereafter for successive periods of one year, subject to approval
as described above.
8. Notwithstanding any provision in this Contract, it may be terminated
at any time with respect to any Fund, without the payment of any penalty, by the
Trustees of the Trust or by a vote of the shareholders of that Fund on sixty
(60) days' written notice to Adviser.
9. This Contract may not be assigned by Adviser and shall automatically
terminate in the event of any assignment. Adviser may employ or contract with
such other person, persons, corporation, or corporations at its own cost and
expense as it shall determine in order to assist it in carrying out this
Contract.
10. In the absence of willful misfeasance, bad faith, gross negligence,
or reckless disregard of the obligations or duties under this Contract on the
part of Adviser, Adviser shall not be liable to the Trust or to any of the Funds
or to any shareholder for any act or omission in the course of or connected in
any way with rendering services or for any losses that may be sustained in the
purchase, holding, or sale of any security.
11. This Contract may be amended at any time by agreement of the
parties provided that the amendment shall be approved both by the vote of a
majority of the Trustees of the Trust including a majority of the Trustees who
are not parties to this Contract or interested persons of any such party to this
Contract (other than as Trustees of the Trust) cast in person at a meeting
called for that purpose, and, where required by Section 15(a)(2) of the Act, on
behalf of a Fund by a majority of the outstanding voting securities of such Fund
as defined in Section 2(a)(42) of the Act.
12. The Adviser acknowledges that all sales literature for investment
companies (such as the Trust) are subject to strict regulatory oversight. The
Adviser agrees to submit any proposed sales literature for the Trust (or any
Fund) or for itself or its affiliates which mentions the Trust (or any Fund) to
the Trust's distributor for review and filing with the appropriate regulatory
authorities prior to the public release of any such sales literature, provided,
however, that nothing herein shall be construed so as to create any obligation
or duty on the part of the Adviser to produce sales literature for the Trust (or
any Fund). The Trust agrees to cause its distributor to promptly review all such
sales literature to ensure compliance with relevant requirements, to promptly
advise Adviser of any deficiencies contained in such sales literature, to
promptly file complying sales literature with the relevant authorities, and to
cause such sales literature to be distributed to prospective investors in the
Trust.
13. Adviser is hereby expressly put on notice of the limitation of
liability as set forth in Article XI of the Declaration of Trust and agrees that
the obligations pursuant to this Contract of a particular Fund and of the Trust
with respect to that particular Fund be limited solely to the assets of that
particular Fund, and Adviser shall not seek satisfaction of any such obligation
from any other Fund, the shareholders of any Fund, the Trustees, officers,
employees or agents of the Trust, or any of them.
14. The Trust and the Funds are hereby expressly put on notice of the
limitation of liability as set forth in the Declaration of Trust of the Adviser
and agree that the obligations assumed by the Adviser pursuant to this Contract
shall be limited in any case to the Adviser and its assets and, except to the
extent expressly permitted by the Investment Company Act of 1940, as amended,
the Trust and the Funds shall not seek satisfaction of any such obligation from
the shareholders of the Adviser, the Trustees, officers, employees, or agents of
the Adviser, or any of them.
15. This Contract shall be construed in accordance with and
governed by the laws of the Commonwealth of Pennsylvania.
16. This Contract will become binding on the parties hereto upon
their execution of the attached exhibits to this Contract.
EXHIBIT A
to the
Investment Advisory Contract
DG INVESTOR SERIES
DG U.S. Goverment Money Market Fund
For all services rendered by Adviser hereunder, the above-named Fund of
the DG Investor Series shall pay to Adviser and Adviser agrees to accept as full
compensation for all services rendered hereunder, an annual investment advisory
fee equal to .50 of 1% of the average daily net assets of the Fund.
The portion of the fee based upon the average daily net assets of the
Fund shall be accrued daily at the rate of 1/365th of .50 of 1% applied to the
daily net assets of the Fund.
The advisory fee so accrued shall be paid to Adviser daily.
Witness the due execution hereof this March 1, 1997.
Attest: ParkSouth Corporation
/s/ J. Xxxxxxxx Xxxxxxxx By: /s/ Xxxxxxx X. Xxxxxxxx
Secretary President
Attest: DG Investor Series
/s/ Xxxx X. XxXxxxxxx By: /s/ J. Xxxxxxxxxxx Xxxxxxx
Secretary Executive Vice President
EXHIBIT B
to the
Investment Advisory Contract
DG INVESTOR SERIES
DG Limited Term Government Income Fund
For all services rendered by Adviser hereunder, the above-named Fund of
the DG Investor Series shall pay to Adviser and Adviser agrees to accept as full
compensation for all services rendered hereunder, an annual investment advisory
fee equal to 0.60 of 1% of the average daily net assets of the Fund.
The portion of the fee based upon the average daily net assets of the
Fund shall be accrued daily at the rate of 1/365th of 0.60 of 1% applied to the
daily net assets of the Fund.
The advisory fee so accrued shall be paid to Adviser daily.
Witness the due execution hereof this March 1, 1997.
Attest: ParkSouth Corporation
/s/ J. Xxxxxxxx Xxxxxxxx By: /s/ Xxxxxxx X. Xxxxxxxx
Secretary President
Attest: DG Investor Series
/s/ Xxxx X. XxXxxxxxx By: /s/ J. Xxxxxxxxxxx Xxxxxxx
Secretary Executive Vice President
EXHIBIT C
to the
Investment Advisory Contract
DG INVESTOR SERIES
DG Government Income Fund
For all services rendered by Adviser hereunder, the above-named Fund of
the DG Investor Series shall pay to Adviser and Adviser agrees to accept as full
compensation for all services rendered hereunder, an annual investment advisory
fee equal to 0.60 of 1% of the average daily net assets of the Fund.
The portion of the fee based upon the average daily net assets of the
Fund shall be accrued daily at the rate of 1/365th of 0.60 of 1% applied to the
daily net assets of the Fund.
The advisory fee so accrued shall be paid to Adviser daily.
Witness the due execution hereof this March 1, 1997.
Attest: ParkSouth Corporation
/s/ J. Xxxxxxxx Xxxxxxxx By: /s/ Xxxxxxx X. Xxxxxxxx
Secretary President
Attest: DG Investor Series
/s/ Xxxx X. XxXxxxxxx By: /s/ J. Xxxxxxxxxxx Xxxxxxx
Secretary Executive Vice President
EXHIBIT D
to the
Investment Advisory Contract
DG INVESTOR SERIES
DG Equity Fund
For all services rendered by Adviser hereunder, the above-named Fund of
the DG Investor Series shall pay to Adviser and Adviser agrees to accept as full
compensation for all services rendered hereunder, an annual investment advisory
fee equal to 0.75 of 1% of the average daily net assets of the Fund.
The portion of the fee based upon the average daily net assets of the
Fund shall be accrued daily at the rate of 1/365th of 0.75 of 1% applied to the
daily net assets of the Fund.
The advisory fee so accrued shall be paid to Adviser daily.
Witness the due execution hereof this March 1, 1997.
Attest: ParkSouth Corporation
/s/ J. Xxxxxxxx Xxxxxxxx By: /s/ Xxxxxxx X. Xxxxxxxx
Secretary President
Attest: DG Investor Series
/s/ Xxxx X. XxXxxxxxx By: /s/ J. Xxxxxxxxxxx Xxxxxxx
Secretary Executive Vice President
EXHIBIT E
to the
Investment Advisory Contract
DG INVESTOR SERIES
DG Municipal Income Fund
For all services rendered by Adviser hereunder, the above-named Fund of
the DG Investor Series shall pay to Adviser and Adviser agrees to accept as full
compensation for all services rendered hereunder, an annual investment advisory
fee equal to 0.60 of 1% of the average daily net assets of the Fund.
The portion of the fee based upon the average daily net assets of the
Fund shall be accrued daily at the rate of 1/365th of 0.60 of 1% applied to the
daily net assets of the Fund.
The advisory fee so accrued shall be paid to Adviser daily.
Witness the due execution hereof this March 1, 1997.
Attest: ParkSouth Corporation
/s/ J. Xxxxxxxx Xxxxxxxx By: /s/ Xxxxxxx X. Xxxxxxxx
Secretary President
Attest: DG Investor Series
/s/ Xxxx X. XxXxxxxxx By: /s/ J. Xxxxxxxxxxx Xxxxxxx
Secretary Executive Vice President
EXHIBIT F
to the
Investment Advisory Contract
DG INVESTOR SERIES
DG Opportunity Fund
For all services rendered by Adviser hereunder, the above-named Fund of
the DG Investor Series shall pay to Adviser and Adviser agrees to accept as full
compensation for all services rendered hereunder, an annual investment advisory
fee equal to 0.95 of 1% of the average daily net assets of the Fund.
The portion of the fee based upon the average daily net assets of the
Fund shall be accrued daily at the rate of 1/365th of 0.95 of 1% applied to the
daily net assets of the Fund.
The advisory fee so accrued shall be paid to Adviser daily.
Witness the due execution hereof this March 1, 1997.
Attest: ParkSouth Corporation
/s/ J. Xxxxxxxx Xxxxxxxx By: /s/ Xxxxxxx X. Xxxxxxxx
Secretary President
Attest: DG Investor Series
/s/ Xxxx X. XxXxxxxxx By: /s/ J. Xxxxxxxxxxx Xxxxxxx
Secretary Executive Vice President
EXHIBIT G
to the
Investment Advisory Contract
DG INVESTOR SERIES
DG Prime Money Market Fund
For all services rendered by Adviser hereunder, the above-named Fund of
the DG Investor Series shall pay to Adviser and Adviser agrees to accept as full
compensation for all services rendered hereunder, an annual investment advisory
fee equal to 0.50% of 1% of the average daily net assets of the Fund.
The portion of the fee based upon the average daily net assets of the
Fund shall be accrued daily at the rate of 1/365th of 0.50 of 1% applied to the
daily net assets of the Fund.
The advisory fee so accrued shall be paid to Adviser daily.
Witness the due execution hereof this March 1, 1997.
Attest: ParkSouth Corporation
/s/ J. Xxxxxxxx Xxxxxxxx By: /s/ Xxxxxxx X. Xxxxxxxx
Secretary President
Attest: DG Investor Series
/s/ Xxxx X. XxXxxxxxx By: /s/ J. Xxxxxxxxxxx Xxxxxxx
Secretary Executive Vice President
EXHIBIT H
to the
Investment Advisory Contract
DG INVESTOR SERIES
DG International Equity Fund
For all services rendered by Adviser hereunder, the above-named Fund of
the DG Investor Series shall pay to Adviser and Adviser agrees to accept as full
compensation for all services rendered hereunder, an annual investment advisory
fee equal to 1% of the average daily net assets of the Fund.
The portion of the fee based upon the average daily net assets of the
Fund shall be accrued daily at the rate of 1/365th of 1% applied to the daily
net assets of the Fund.
The advisory fee so accrued shall be paid to Adviser daily.
Witness the due execution hereof this March 1, 1997.
Attest: ParkSouth Corporation
/s/ J. Xxxxxxxx Xxxxxxxx By: /s/ Xxxxxxx X. Xxxxxxxx
Secretary President
Attest: DG Investor Series
/s/ Xxxx X. XxXxxxxxx By: /s/ J. Xxxxxxxxxxx Xxxxxxx
Secretary Executive Vice President
