SUB-ITEM 77Q1(e): Amendment to Investment Management Contract
AMENDMENT NO. 2 TO THE INVESTMENT MANAGEMENT CONTRACT
THIS AMENDMENT TO THE INVESTMENT MANAGEMENT CONTRACT is made
as of June 7, 2007, by and between DELAFIELD FUND, INC., a Maryland corporation
(the "Fund") and XXXXX & XXXX ASSET MANAGEMENT, LLC, (the "Manager").
W I T N E S S E T H:
WHEREAS, the Fund and the Manager are parties to an Investment
Management Contract dated as of October 30, 2000, as amended on April 24, 2003
(the "Management Contract"), pursuant to which the Manager serves as the
investment manager for the Fund; and
WHEREAS, the Fund and the Manager desire to amend the
Management Contract to reflect a modification of the fee payable by the Fund to
the Manager under such contract.
NOW, THEREFORE, the parties hereby agree as follows:
1. The first sentence of Paragraph 5 of the Management
Contract is hereby amended to read as follows:
In consideration of the foregoing we will pay you a
fee at the annual rate of 0.80% on the first $250 million of net assets of the
Fund; 0.75% on the next $250 million of net assets of the Fund; 0.70% on the
next $500 million of net assets of the Fund; and 0.65% on all net assets of the
Fund over $1 billion.
2. The Management Contract, as expressly amended hereby, shall
continue in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this
AMENDMENT No. 2 TO THE INVESTMENT MANAGEMENT CONTRACT as of the day and year
first above written.
DELAFIELD FUND, INC.
By:/s/Xxxxxx X. Xxxx
Name:Xxxxxx X. Xxxx
Title: Principal Executive Officer
XXXXX & XXXX ASSET MANAGEMENT, LLC
By:/s/Xxxxxxx Xx Xxxxxxx
Name:Xxxxxxx Xx Xxxxxxx
Title:Executive V.P. and Chief
Financial Officer
AMENDMENT TO THE INVESTMENT MANAGEMENT CONTRACT
THIS AMENDMENT TO THE INVESTMENT MANAGEMENT CONTRACT is made as
of April 24, 2003, by and between DELAFIELD FUND, INC., a Maryland corporation
(the "Fund") and XXXXX & XXXX ASSET MANAGEMENT, LLC, (the "Manager").
W I T N E S S E T H:
WHEREAS, the Fund and the Manager are parties to an Investment
Management Contract dated as of October 30, 2000 (the "Management Contract"),
pursuant to which the Manager serves as the investment manager for the Fund; and
WHEREAS, the Fund's shareholders have approved an amendment to
the Fund's Rule 12b-1 Distribution and Service Plan implementing an annual
service fee of 0.25% of average daily net assets pursuant to a Shareholder
Servicing Agreement; and
WHEREAS, the Fund and Manager desire to amend the Management
Contract to reflect a modification of the fee payable by the Fund to the Manager
under such contract.
NOW, THEREFORE, the parties hereby agree as follows:
1. The first sentence of Paragraph 5 of the Management
Contract is hereby amended to read as follows:
In consideration of the foregoing we will pay you
a fee at the annual rate of 0.80% on the first $250 million of
net assets of the Fund; 0.75% on the next $250 million of net
assets of the Fund; and 0.70% on all net assets of the Fund
over $500 million.
2. The Management Contract, as expressly amended hereby, shall
continue in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this
AMENDMENT TO THE INVESTMENT MANAGEMENT CONTRACT as of the day and year first
above written.
DELAFIELD FUND, INC.
By:/s/Xxxxxxx Xxxxxxx
Name:Xxxxxxx Xxxxxxx
Title: Secretary
XXXXX & XXXX ASSET MANAGEMENT, LLC
By:/s/Xxxxxxx Xx Xxxxxxx
Name:Xxxxxxx Xx Xxxxxxx
Title:Executive V.P. and Chief
Financial Officer
INVESTMENT MANAGEMENT CONTRACT
DELAFIELD FUND, INC.
(the "Fund")
Xxx Xxxx, Xxx Xxxx
Xxxxxxx 00, 0000
Xxxxx & Xxxx Asset Management L.P.
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Gentlemen:
We herewith confirm our agreement with you as follows:
1. We propose to engage in the business of investing and
reinvesting our assets in securities of the type, and in accordance with the
limitations, specified in our Articles of Incorporation, By-Laws and
Registration Statement filed with the Securities and Exchange Commission under
the Investment Company Act of 1940 (the "1940 Act") and the Securities Act of
1933, including the Prospectus forming a part thereof (the "Registration
Statement"), all as from time to time in effect, and in such manner and to such
extent as may from time to time be authorized by our Board of Directors. We
enclose copies of the documents listed above and will furnish you such
amendments thereto as may be made from time to time.
2. (a) We hereby employ you to manage the investment and
reinvestment of our assets as above specified, and, without limiting the
generality of the foregoing, to provide the investment management services
specified below.
(b) Subject to the general control of our Board of Directors,
you will make decisions with respect to all purchases and sales of the portfolio
securities. To carry out such decisions, you are hereby authorized, as our agent
and attorney-in-fact for our account and at our risk and in our name, to place
orders for the investment and reinvestment of our assets. In all purchases,
sales and other transactions in our portfolio securities you are authorized to
exercise full discretion and act for us in the same manner and with the same
force and effect as our corporation itself might or could do with respect to
such purchases, sales or other transactions, as well as with respect to all
other things necessary or incidental to the furtherance or conduct of such
purchases, sales or other transactions. In furtherance of such and subject to
applicable law and procedures adopted by the Fund's Board of Directors, you may
(i) direct portfolio brokerage to yourself; (ii) pay commissions to brokers
other than yourself which are higher than such that might be charged by another
qualified broker to obtain brokerage and/or research services considered by you
to be useful or desirable for your investment management of the portfolio and/or
other advisory accounts of yours and any investment advisor affiliated with you;
and (iii) consider the sales of shares of the Fund by brokers including yourself
as a factor in your selection of brokers for portfolio transactions.
(c) You will report to our Board of Directors at each meeting
thereof all changes in our portfolio since your prior report, and will also keep
us in touch with important developments affecting our portfolio and, on your
initiative, will furnish us from time to time with such information as you may
believe appropriate for this purpose, whether concerning the individual entities
whose securities are included in our portfolio, the activities in which such
entities engage, Federal income tax policies applicable to our investments, or
the conditions prevailing in the money market or the economy generally. You will
also furnish us with such statistical and analytical information with respect to
our portfolio securities as you may believe appropriate or as we may reasonably
request. In making such purchases and sales of our portfolio securities, you
will comply with the policies set from time to time by our Board of Directors as
well as the limitations imposed by our Articles of Incorporation and by the
provisions of the Internal Revenue Code and the 1940 Act relating to regulated
investment companies and the limitations contained in the Registration
Statement.
(d) It is understood that you will from time to time employ,
subcontract with or otherwise associate with yourself, entirely at your expense,
such persons as you believe to be particularly fitted to assist you in the
execution of your duties hereunder.
(e) You or your affiliates will also furnish us, at your own
expense, such investment advisory supervision and assistance as you may believe
appropriate or as we may reasonably request subject to the requirements of any
regulatory authority to which you may be subject. You and your affiliates will
also pay the expenses of promoting the sale of our shares (other than the costs
of preparing, printing and filing our registration statement, printing copies of
the prospectus contained therein and complying with other applicable regulatory
requirements), except to the extent that we are permitted to bear such expenses
under a plan adopted pursuant to Rule 12b-1 under the 1940 Act or a similar
rule.
3. We agree, subject to the limitations described below, to
be responsible for, and hereby assume the obligation for payment of, all our
expenses, including: (a) brokerage and commission expenses, (b) Federal, state
or local taxes, including issue and transfer taxes incurred by or levied on us,
(c) commitment fees and certain insurance premiums, (d) interest charges on
borrowings, (e) charges and expenses of our custodian, (f) charges, expenses and
payments relating to the issuance, redemption, transfer and dividend disbursing
functions for us, (g) recurring and nonrecurring legal and accounting expenses,
including those of the bookkeeping agent, (h) telecommunications expenses, (i)
the costs of organizing and maintaining our existence as a corporation, (j)
compensation, including directors' fees, of any of our directors, officers or
employees who are not your officers or officers of your affiliates, and costs of
other personnel providing clerical, accounting supervision and other office
services to us as we may request, (k) costs of stockholder's services including,
charges and expenses of persons providing confirmations of transactions in our
shares, periodic statements to stockholders, and recordkeeping and stockholders'
services, (l) costs of stockholders' reports, proxy solicitations, and corporate
meetings, (m) fees and expenses of registering our shares under the appropriate
Federal securities laws and of qualifying such shares under applicable state
securities laws, including expenses attendant upon the initial registration and
qualification of such shares and attendant upon renewals of, or amendments to,
those registrations and qualifications, (n) expenses of preparing, printing and
delivering our prospectus to existing stockholders and of printing stockholder
application forms for stockholder accounts, (o) payment of the fees and expenses
provided for herein, under the Administrative Services Agreement and pursuant to
the Shareholder Servicing Agreement and Distribution Agreement, and (p) any
other distribution or promotional expenses contemplated by an effective plan
adopted by us pursuant to Rule 12b-1 under the Act. Our obligation for the
foregoing expenses is limited by your agreement to be
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responsible, while this Agreement is in effect, for any amount by which our
annual operating expenses (excluding taxes, brokerage, interest and
extraordinary expenses) exceed the limits on investment company expenses
prescribed by any state in which our shares are qualified for sale.
4. We will expect of you, and you will give us the benefit
of, your best judgment and efforts in rendering these services to us, and we
agree as an inducement to your undertaking these services that you will not be
liable hereunder for any mistake of judgment or for any other cause, provided
that nothing herein shall protect you against any liability to us or to our
security holders by reason of willful misfeasance, bad faith or gross negligence
in the performance of your duties hereunder, or by reason of your reckless
disregard of your obligations and duties hereunder.
5. In consideration of the foregoing we will pay you a fee at
the annual rate of .80% of the Fund's average daily net assets. Your fee will be
accrued by us daily, and will be payable on the last day of each calendar month
for services performed hereunder during that month or on such other schedule as
you shall request of us in writing. You may use any portion of this fee for
distribution of our shares, or for making servicing payments to organizations
whose customers or clients are our stockholders. You may waive your right to any
fee to which you are entitled hereunder, provided such waiver is delivered to us
in writing. Any reimbursement of our expenses, to which we may become entitled
pursuant to paragraph 3 hereof, will be paid to us at the same time as we pay
you.
6. This Agreement will become effective on the date hereof
and shall continue in effect until June 30, 2002 , and thereafter for successive
twelve-month periods (computed from each July 1), provided that such
continuation is specifically approved at least annually by our Board of
Directors or by a majority vote of the holders of our outstanding voting
securities, as defined in the 1940 Act and the rules thereunder, and, in either
case, by a majority of those of our directors who are neither party to this
Agreement nor, other than by their service as directors of the corporation,
interested persons, as defined in the 1940 Act and the rules thereunder, of any
such person who is party to this Agreement. Upon the effectiveness of this
Agreement, it shall supersede all previous Agreements between us covering the
subject matter hereof. This Agreement may be terminated at any time, without the
payment of any penalty, (i) by vote of a majority of our outstanding voting
securities, as defined in the 1940 Act and the rules thereunder, or (ii) by a
vote of a majority of our entire Board of Directors, on sixty days' written
notice to you, or (iii) by you on sixty days' written notice to us.
7. This Agreement may not be transferred, assigned, sold or
in any manner hypothecated or pledged by you and this agreement shall terminate
automatically in the event of any such transfer, assignment, sale, hypothecation
or pledge by you. The terms "transfer", "assignment" and "sale" as used in this
paragraph shall have the meanings ascribed thereto by governing law and in
applicable rules or regulations of the Securities and Exchange Commission.
8. Except to the extent necessary to perform your obligations
hereunder, nothing herein shall be deemed to limit or restrict your right, or
the right of any of your employees or the officers and directors of Xxxxx & Xxxx
Asset Management, Inc., your general partner, who may also be a director,
officer or employee of ours, or of a person affiliated with us, as defined in
the 1940 Act, to engage in any other business or to devote time and attention to
the management or other aspects of any
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other business, whether of a similar or dissimilar nature, or to render services
of any kind to any other corporation, firm, individual or association.
If the foregoing is in accordance with your understanding,
will you kindly so indicate by signing and returning to us the enclosed copy
hereof.
Very truly yours,
DELAFIELD FUND, INC.
By: /s/ Xxxxxxxxxx X. Xxxx
------------------------
Name: Xxxxxxxxxx X. Xxxx
Title: Secretary
ACCEPTED: October 30, 2000
XXXXX & XXXX ASSET MANAGEMENT L.P.
By: XXXXX & TANG ASSET MANAGEMENT, INC.
General Partner
By: /s/ Xxxxxxxx X. Xxxxxx
----------------------
Name: Xxxxxxxx X. Xxxxxx
Title: Executive Vice President
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