EXHIBIT A
"COMPREHENSIVE FEE"
INVESTMENT MANAGEMENT AGREEMENT
THIS AGREEMENT, dated the ____ day of _____________, 1998, made and
entered into by and between Reserve Private Equity Series, (the "Trust"),
organized as an unincorporated business trust under the laws of the Commonwealth
of Massachusetts, and RESERVE MANAGEMENT COMPANY, INC., (the "Manager"), a New
Jersey corporation having its principal place of business in 000 Xxxxxxx Xxxxxx,
Xxx Xxxx, XX 00000, on behalf of the Reserve Fund (the "Portfolio").
WHEREAS, the Trust is engaged as a non-diversified management investment
company and is registered as such under the Investment Company Act of 1940 (the
"1940 Act"); and
WHEREAS, the Trust is authorized to issue an unlimited number of shares of
beneficial interest, no par value, in separate series or classes of series, with
each such separate series representing an interest in a separate portfolio of
investment securities and other assets;
The parties agree as follows:
1. Investment Services. The Manager shall select and manage the
Portfolio's investments and shall determine what investments shall be made or
disposed of by the Portfolio and shall effect such acquisitions and
dispositions, all in furtherance of the Portfolio's investment objective and
policies, subject to the overall control and direction of the Trust's Board of
Trustees. The Manager shall report on such activities to the Board of Trustees
of the Trust and shall submit such reports and other information thereon as the
Board of Trustees shall from time to time request. Notwithstanding any other
provision hereof, the Manager, with the approval of the Trust, may contract with
one or more Sub-Investment Managers to perform any of the investment management
services; provided, however, any compensation paid will be the sole
responsibility of the Manager.
2. Other Services and Assumption of Certain Expenses. The Manager shall
furnish to the Trust, on behalf of the Portfolio: (i) the services of a
President and such other executive officers as may be requested by the
Portfolio, (ii) office space and customary office facilities to the extent that
the Portfolio's activities occur in New York, (iii) maintain Portfolio records
not otherwise maintained by the Portfolio's custodian, distributor or
sub-investment managers, and (iv) all accounting, administrative, clerical,
secretarial and statistical services as may be required by the Portfolio for the
operation of its business and compliance with applicable laws. The Manager shall
pay the compensation of all officers of the Trust on behalf of the Portfolio and
all operating and other expenses of the Portfolio except interest charges,
taxes, brokerage fees and commissions, extraordinary legal and accounting fees
and other extraordinary expenses including expenses incurred in connection with
litigation proceedings, other claims and the legal obligations of the Trust to
indemnify its trustees, officers, employees, shareholders, distributors and
other agents of the Trust, payments made pursuant to the Trust's Distribution
Plan, and the fees of the disinterested Trustees. The Manager may contract with
other parties to perform any of the ordinary administrative services required of
the Manager; provided, however any such compensation will be the responsibility
of the Manager.
3. Compensation of the Manager. The Portfolio shall pay to the Manager as
compensation for the services rendered hereunder and as for full reimbursement
for all officers compensation and ordinary operating expenses of the Portfolio
paid by the Manager under paragraph 2 hereof, a Management fee at an annual rate
of ___% of the average daily net asset value of the Portfolio.
The Management fee shall be computed and accrued daily and shall be paid
by the Portfolio to the Manager monthly.
4. Compliance with Applicable Requirements. This Agreement will be
performed in accordance with the requirements of the 1940 Act and the Investment
Advisers Act of 1940 and the rules and regulations under such acts, to the
extent that the subject matter of the Agreement is within the purview of such
acts and such rules and regulations. The Manager will assist the Trust on behalf
of the Portfolio in complying with the requirements of the 1940 Act, and the
Securities Act of 1933, and the rules and regulations under such acts and in
qualifying as a regulated investment company under the Internal Revenue Code of
1986 and applicable regulations of the Internal Revenue Service thereunder. In
carrying out its obligations under this Agreement the Manager shall at all times
conform to the provisions of the Declaration of Trust and By-Laws, the
provisions of the currently effective Registration Statement of the Trust under
the 1940 Act and the Securities Act of 1933, and any other applicable provisions
or state of Federal law.
5. Termination. This Agreement shall be in effect until the close of
business on _____________, 2000 and shall continue in effect from year to year
thereafter but only so long as such continuance is specifically approved at
least annually by (i) either the Board of Trustees of the Trust or a majority
vote of the outstanding voting securities of the Portfolio, provided, however,
that if the shareholders of the Portfolio fail to approve the Agreement, as
provided herein, the Manager may continue to serve in such capacity in the
manner and to the extent permitted by the 1940 Act, and the rules thereunder,
and (ii) the vote of a majority of the Trustees of the Trust who are not parties
to this Agreement or interested persons (as defined in the 0000 Xxx) of either
party of this Agreement, cast in person at a meeting called for the purpose of
voting on such approval.
Notwithstanding anything herein to the contrary, this Agreement may be
terminated at any time, without payment of any penalty, by the Board of Trustees
of the Trust or by vote of a majority of the outstanding voting securities of
the Portfolio, on 60 days' written notice to the Manager, or by the Manager on
like notice to the Trust.
The name Reserve ___________ shall be deemed to have been licensed to the
Trust by the Manager. In the event of termination of this Agreement, the Manager
may terminate or revoke such license on 90 days written notice to the Trust. On
or before the date of such revocation or termination, the Trust will change its
name to another name which does not include the word "Reserve."
6. Non-Assignability. This Agreement shall not be assignable by either
party hereto and shall automatically terminate forthwith in the event of such
assignment (within the meaning of the 1940 Act).
7. Approval of Agreement and Amendments. This Agreement and any material
amendments hereto shall be approved by vote of the holders of a majority (as
defined in the 0000 Xxx) of the outstanding voting securities of the Portfolio,
provided, however, that if the shareholders of the Portfolio fail to approve the
Agreement as provided herein, the Manager may continue to serve in such capacity
in the manner and to the extent permitted by the 1940 Act and the rules
thereunder.
8. Non-Exclusivity. The services of the Manager to the Trust are not to be
deemed exclusive and the Trust agrees that the Manager is free to act as
investment manager to various investment companies and other managed accounts.
For purposes of this Agreement and the undertakings provided for herein, the
Manager shall at all times be considered as an independent contractor, and shall
not be considered as an agent of the Trust and shall have no authority to act
for or represent the Trust in any way.
9. Liability of the Manager. In performing its duties hereunder, the
Manager may rely on all documentation and information furnished it by the Trust.
Except as may otherwise be provided by the 1940 Act, neither the Manager nor its
officers, directors, employees or agents shall be subject to any liability for
any act or omission in the course of, connected with or arising out of any
services to be rendered hereunder, except by reason of willful misfeasance, bad
faith or gross negligence in the performance of the Manager's duties or by
reason of reckless disregard of the Manager's obligations and duties under this
Agreement.
10. Notices. Any notices and communications required hereunder shall be in
writing and shall be deemed given when delivered in person or when sent by
first-class, registered or certified mail to the Manager, to the Trust at 000
Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, or at such addresses as either party
may from time to time specify by notice to the other.
11. Governing Law. The terms and provisions of this Agreement shall be
interpreted under and governed by the law of the State of New York.
12. 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 be deemed to be severable.
13. Shareholder Liability. The Manager understands and agrees that the
obligations of the Trust under this Agreement are not binding upon any
shareholder of the Trust personally, but bind only the Trust and the Trust's
property. The Manager represents that it has notice of the provisions of the
Declaration of Trust of the Trust disclaiming shareholder liability for acts or
obligations of the Trust.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed on the day and year first above written.
RESERVE PRIVATE EQUITY SERIES
By --------------------------------
President
ATTEST:
-------------------------
Secretary
RESERVE MANAGEMENT COMPANY, INC.
By --------------------------------
President
ATTEST:
-------------------------
Secretary
