INVESTMENT ADVISORY AGREEMENT
AGREEMENT made this 27th day of September , 1989 by and between The
Regis Fund, Inc., a Maryland corporation (the "Fund") and Xxxxx Square
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Investors Corporation, a Delaware Corporation, (the "Adviser").
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1. Duties of Adviser. The Fund hereby appoints the Adviser to act as
investment adviser to the Fund's DSI Limited Maturity Bond Portfolio for the
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period and on such terms set forth in this Agreement. The Fund employs the
Adviser to manage the investment and reinvestment of the assets of the Fund's
DSI Limited Maturity Bond Portfolio, to continuously review, supervise and
administer the investment program of the DSI Limited Maturity Bond Portfolio, to
determine in its discretion the securities to be purchased or sold and the
portion of such Portfolio's assets to be held uninvested, to provide the Fund
with records concerning the Adviser's activities which the Fund is required to
maintain, and to render regular reports to the Fund's officers and Board of
Directors concerning the Adviser's discharge of the foregoing responsibilities.
The Adviser shall discharge the foregoing responsibilities subject to the
control of the officers and the Board of Directors of the Fund, and in
compliance with the objectives, policies and limitations set forth in the Fund's
prospectus and applicable laws and regulations. The Adviser accepts such
employment and agrees to render the services and to provide, at its own expense,
the office space, furnishings and equipment and the Personnel required by it to
perform the services on the terms and for the compensation provided herein.
2. Portfolio Transactions. The Adviser is authorized to select the
brokers or dealers that will execute the purchases and sales of securities for
the Fund's DSI Limited Maturity Bond Portfolio and is directed to use its best
efforts to obtain the best available price and most favorable execution, except
as prescribed herein. Subject to policies established by the Board of
Directors of the Fund, the Adviser may also be authorized to effect individual
securities transactions at commission rates in excess of the minimum commission
rates available, if the Adviser determines in good faith that such amount of
commission is reasonable in relation to the value of the brokerage or research
services provided by such broker or dealer, viewed in terms of either that
particular transaction or the Adviser's overall responsibilities with respect to
the Fund. The execution of such transactions shall not be deemed to represent an
unlawful act or breach of any duty created by this Agreement or otherwise. The
Adviser will promptly communicate to the officers and Directors of the Fund such
information relating to portfolio transactions as they may reasonably request.
3. Compensation of the Adviser. For the services to be rendered by the
Adviser as provided in Section 1 of this Agreement, the Fund shall pay to the
Adviser in monthly installments, an advisory fee calculated by applying the
following annual percentage rates to the DSI Limited Maturity Bond Portfolio's
average daily net assets for the month:
DSI Limited Maturity Bond Portfolio .450% on the first $500 million
.400% on the next $500 million
.350% in excess of $1 billion
In the event of termination of this Agreement, the fee provided in this
Section shall be computed on the basis of the period ending on the last business
day on which this Agreement is in effect subject to a pro rata adjustment based
on the number of days elapsed in the current fiscal month as a percentage of the
total number of days in such month.
4. Other Services. At the request of the Fund, the Adviser in its
discretion may make available to the Fund office facilities, equipment,
personnel and other services. Such office
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facilities, equipment, personnel and services shall be provided for or rendered
by the Adviser and billed to the Fund at the Adviser's cost.
5. Reports. The Fund and the Adviser agree to furnish to each other
current prospectuses, proxy statements, reports to shareholders, certified
copies of their financial statements, and such other information with regard to
their affairs as each may reasonably request.
6. Status of Adviser. The services of the Adviser to the Fund are not to
be deemed exclusive, and the Adviser shall be free to render similar services.
to others so long as its services to the Fund are not impaired thereby.
7. Liability of Adviser. In the absence of (i) willful misfeasance, bad
faith or gross negligence on the part of the Adviser in performance of its
obligations and duties hereunder, (ii) reckless disregard by the Adviser of its
obligations and duties hereunder, or (iii) a loss resulting from a breach of
fiduciary duty with respect to the receipt of compensation for services (in
which case any award of damages shall be limited to the period and the amount
set forth in Section 36(b)(3) of the Investment Company Act of 1940 (01940
Act"), the Adviser shall not be subject to Any liability whatsoever to the Fund,
or to any shareholder of the Fund, for any error or judgment, mistake of law or
any other act or omission in the course of, or connected with, rendering
services hereunder including, without limitation, for any losses that may be
sustained in connection with the purchase, holding, redemption or sale of any
security on behalf of the DSI Limited Maturity Bond Portfolio.
8. Permissible Interests. Subject to and in accordance with the Articles
of Incorporation of the Fund and the Articles of Incorporation of the Adviser,
Directors, officers, agents and shareholders of the Fund are or may be
interested in the Adviser (or any successor
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thereof) as Directors, officers, agents, shareholders or otherwise; Directors,
officers, agents and shareholders of the Adviser are or may be interested in the
Fund as Directors, officers, shareholders or otherwise; and the Adviser (or any
successor) is or may be interested in the Fund as a shareholder or otherwise;
and that the effect of any such interrelationships shall be governed by said
Articles of Incorporation and the provisions of the 1940 Act.
9. Duration and Termination. This Agreement, unless sooner terminated as
provided herein, shall continue until the earlier of 9/27, 1991 or the date of
the first annual or special meeting of the shareholders of the Fund and, if
approved by a majority of the outstanding voting securities of the DSI Limited
Maturity Bond Portfolio, thereafter shall continue for periods of one year so
long as such continuance is specifically approved at least annually (a) by the
vote of a majority of those members of the Board of Directors of the Fund who
are not parties to this Agreement or interested persons of any such party, cast
in person at a meeting called for the purpose of voting on such approval, and
(b) by the Board of Directors of the ]Fund or (c) by vote of a majority of the
outstanding voting securities of the DSI Limited Maturity Bond Portfolio;
provided however, that if the holders of the DSI Limited Maturity Bond Portfolio
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fail to approve the Agreement as provided herein, the Adviser may continue to
serve in such capacity in the manner and to the extent permitted by the 1040 Act
and Rules thereunder. This Agreement may be terminated by the DSI Limited
Maturity Bond Portfolio at any time, without the payment of any penalty, by vote
of a majority of the entire Board of Directors of the Fund or by vote of a
majority of the outstanding voting securities of the DSI Limited Maturity Bond
Portfolio on 60 days written notice to the Adviser. This Agreement may be
terminated by the Adviser at any time, without the payment of any penalty, upon
90 days written notice to the Fund. This agreement will automatically and
immediately terminate in the event of its
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assignment. Any notice under this Agreement shall be given in writing, addressed
and delivered or mailed postpaid, to the other party at the principal office of
such party.
As used in this Section 9, the terms "assignment", "interested persons",
and "a vote of a majority of the outstanding voting securities" shall have the
respective meanings set forth in Section 2(a)(4), Section 2(a)(19) and Section
2(a)(42) of the 1940 Act.
10. Amendment of Agreement. This Agreement may. Amended by mutual consent,
but the consent of the Fund must be approved (a) by vote of a majority of those
members of the Board of Directors of the Fund who are not parties to this
Agreement or interested persons of any such party, cast in person at a meeting
called for the purpose of voting or such amendment, and (b) by vote of a
majority of the outstanding voting securities of the DSI Limited Maturity Bond
Portfolio.
11. Severability. If any provisions 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.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of this 27th day of September, 1989.
XXXXX SQUARE INVESTORS CORPORATION THE REGIS FUND, INC.
By /s/ Xxxxx X. Xxxxxxx By /s/ Norton X. Xxxxxx
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Xxxxx X. Xxxxxxx Norton X. Xxxxxx
President Chairman of the Board
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