1
Exhibit (5)(a)(ix)
2
ADVISORY AGREEMENT
AGREEMENT made this __ day of ______, 199_, between North American
Funds, a Massachusetts business trust (the "Trust"), and NASL Financial
Services, Inc., a Massachusetts corporation ("NASL Financial" or the
"Adviser"). In consideration of the mutual covenants contained herein,
the parties agree as follows:
1. APPOINTMENT OF ADVISER
The Trust hereby appoints NASL Financial, subject to the supervision of
the Trustees of the Trust and the terms of this Agreement, as the
investment adviser for each of the portfolios of the Trust specified in
Appendix A to this Agreement as it shall be amended by the Adviser and the
Trust from time to time (the "Portfolios"). The Adviser accepts such
appointment and agrees to render the services and to assume the
obligations set forth in this Agreement commencing on its effective
date. The Adviser will be an independent contractor and will have no
authority to act for or represent the Trust in any way or otherwise be
deemed an agent unless expressly authorized in this Agreement or another
writing by the Trust and Adviser.
2. DUTIES OF THE ADVISER
a. Subject to the general supervision of the Trustees of the Trust and the
terms of this Agreement, the Adviser will at its own expense select,
contract with, and compensate investment subadvisers ("Subadvisers") to
manage the investments and determine the composition of the assets of the
Portfolios; provided, that any contract with a Subadviser (the
"Subadvisory Agreement") shall be in compliance with and approved as
required by the Investment Company Act of 1940, as amended ("Investment
Company Act"). Subject always to the direction and control of the
Trustees of the Trust, the Adviser will monitor compliance of each
Subadviser with the investment objectives and related investment policies,
as set forth in the Trust's registration statement as filed with the
Securities and Exchange Commission, of any Portfolio or Portfolios under
the management of such Subadviser, and review and report to the Trustees
of the Trust on the performance of such Subadviser.
b. The Adviser will oversee the administration of all aspects of the Trust's
business and affairs and in that connection will furnish to the Trust the
following services:
(1) OFFICE AND OTHER FACILITIES. The Adviser shall furnish to the
Trust office space in the offices of the Adviser or in such
other place as may be agreed upon by the parties hereto from
time to time and such other office facilities, utilities and
office equipment as are necessary for the Trust's operations.
(2) TRUSTEES AND OFFICERS. The Adviser agrees to permit individuals
who are directors, officers or employees of the Adviser to serve
(if duly elected or appointed) as Trustees or President, Vice
President, Treasurer or Secretary of the Trust, without
remuneration from or other cost to the Trust.
(3) OTHER PERSONNEL. The Adviser shall furnish to the Trust, at the
Trust's expense, any other personnel necessary for the
operations of the Trust.
1
3
(4) FINANCIAL, ACCOUNTING, AND ADMINISTRATIVE SERVICES. The Adviser
shall maintain the existence and records of the Trust; maintain
the registrations and qualifications of Trust shares under
federal and state law; and perform all administrative,
financial, accounting, bookkeeping and recordkeeping functions
of the Trust except for any such functions that may be performed
by a third party pursuant to a custodian, transfer agency or
service agreement executed by the Trust. The Trust shall
reimburse the Adviser for its expenses associated with all such
services, including the compensation and related personnel
expenses and expenses of office space, office equipment,
utilities and miscellaneous office expenses, except any such
expenses directly at tributable to officers or employees of the
Adviser who are serving as President, Vice President, Treasurer
or Secretary of the Trust. The Adviser shall determine the
expenses to be reimbursed by the Trust pursuant to expense
allocation procedures established by the Adviser in accordance
with generally accepted accounting principles.
(5) LIAISONS WITH AGENTS. The Adviser, at its own expense, shall
maintain liaison with the various agents and other persons
employed by the Trust (including the Trust's transfer agent,
custodian, independent accountants and legal counsel) and assist
in the coordination of their activities on behalf of the Trust.
Fees and expenses of such agents and other persons will be paid
by the Trust.
(6) REPORTS TO TRUST. The Adviser shall furnish to or place at the
disposal of the Trust such information, reports, valuations,
analyses and opinions as the Trust may, at any time or from
time to time, reasonably request or as the Adviser may deem
helpful to the Trust, provided that the expenses associated with
any such materials furnished by the Adviser at the request of
the Trust shall be borne by the Trust.
(7) REPORTS AND OTHER COMMUNICATIONS TO TRUST SHAREHOLDERS. The
Adviser shall assist the Trust in developing (but not pay for)
all general shareholder communications including regular
shareholder reports.
3. EXPENSES ASSUMED BY THE TRUST
In addition to paying the advisory fee provided for in Section 5., the
Trust will pay all expenses of its organization, operations and business
not specifically assumed or agreed to be paid by the Adviser as provided
in this Agreement, by a Subadviser as provided in a Subadvisory Agreement,
or by the Distributor as provided in the Distribution Agreement. Without
limiting the generality of the foregoing, the Trust, in addition to
certain expenses described in Section 2. above, shall pay or arrange for
the payment of the following:
a. CUSTODY AND ACCOUNTING SERVICES. All expenses of the transfer, receipt,
safekeeping, servicing and accounting for the Trust's cash, securities,
and other property, including all charges of depositories, custodians and
other agents, if any;
b. SHAREHOLDER SERVICING. All expenses of maintaining and servicing
shareholder accounts, including all charges of the Trust's
transfer, shareholder recordkeeping, dividend disbursing, redemption, and
other agents, if any;
c. SHAREHOLDER COMMUNICATIONS. All expenses of preparing, setting in type,
printing, and distributing reports and other communications to
shareholders;
d. SHAREHOLDER MEETINGS. All expenses incidental to holding meetings of
Trust shareholders, including the printing of notices and proxy material,
and proxy solicitation therefor;
2
4
e. PROSPECTUSES. All expenses of preparing, setting in type, and printing
of annual or more frequent revisions of the Trust's prospectus and
statement of additional information and any supplements thereto and of
mailing them to shareholders;
f. PRICING. All expenses of computing the net asset value per share for each
of the Portfolios, including the cost of any equipment or services used
for obtaining price quotations and valuing its investment portfolio;
g. COMMUNICATION EQUIPMENT. All charges for equipment or services used for
communication between the Adviser or the Trust and the custodian,
transfer agent or any other agent selected by the Trust;
h. LEGAL AND ACCOUNTING FEES AND EXPENSES. All charges for services and
expenses of the Trust's legal counsel and independent auditors;
i. TRUSTEES AND OFFICERS. Except as expressly provided otherwise in
paragraph 2.b.(2), all compensation of Trustees and officers, all
expenses incurred in connection with the service of Trustees and officers,
and all expenses of meetings of the Trustees and Committees of Trustees;
j. FEDERAL REGISTRATION FEES. All fees and expenses of registering and
maintaining the registration of the Trust under the Investment Company Act
and the registration of the Trust's shares under the Securities Act of
1933, as amended (the "1933 Act"), including all fees and expenses
incurred in connection with the preparation, setting in type, printing and
filing of any registration statement and prospectus under the 1933 Act or
the Investment Company Act, and any amendments or supplements that may be
made from time to time;
k. STATE REGISTRATION FEES. All fees and expenses of qualifying and
maintaining qualification of the Trust and of the Trust's shares for
sale under securities laws of various states or jurisdictions, and of
registration and qualification of the Trust under all other laws
applicable to the Trust or its business activities (including registering
the Trust as a broker- dealer, or any officer of the Trust or any person
as agent or salesman of the Trust in any state);
l. ISSUE AND REDEMPTION OF TRUST SHARES. All expenses incurred in connection
with the issue, redemption, and transfer of Trust shares, including the
expense of confirming all share transactions, and of preparing and
transmitting certificates for shares of beneficial interest in the Trust;
m. BONDING AND INSURANCE. All expenses of bond, liability and other
insurance coverage required by law or regulation or deemed advisable by
the Trust's Trustees including, without limitation, such bond,
liability and other insurance expense that may from time to time be
allocated to the Trust in a manner approved by its Trustees;
n. BROKERAGE COMMISSIONS. All brokers' commissions and other charges
incident to the purchase, sale, or lending of the Trust's portfolio
securities;
o. TAXES. All taxes or governmental fees payable by or with respect to the
Trust to federal, state, or other governmental agencies, domestic or
foreign, including stamp or other transfer taxes, and all expenses
incurred in the preparation of tax returns;
p. TRADE ASSOCIATION FEES. All fees, dues, and other expenses incurred in
connection with the Trust's membership in any trade association or
other investment organization; and
q. NONRECURRING AND EXTRAORDINARY EXPENSES. Such nonrecurring expenses as
may arise, including the costs of actions, suits, or proceedings to
which the Trust is, or is threatened to be made, a party and the expenses
the Trust may incur as a result of its legal
3
5
obligation to provide indemnification to its Trustees, officers, agents
and shareholders.
4. EXPENSE LIMITATION
a. For purposes of this section the following definitions shall apply:
(1) "Computation Period" means the portion of the current fiscal
year ended on the date as of which a determination is being
made whether the Adviser's compensation should be
reduced or it should reimburse the Trust because of the
Limitation Expenses of a Portfolio.
(2) "Regulatory Limit" means the limitation on investment company
expenses during a Computation Period imposed by any statute or
regulatory authority of any jurisdiction in which shares
of a Portfolio are qualified for offer and sale.
(3) "Fixed Limit" means the percent, specified in Appendix B to this
Agreement, on an annualized basis of the average net asset
value of a portfolio during a Computation Period.
(4) "Expense Limit" means either the Regulatory Limit or Fixed Limit
or both, as applicable.
(5) "Limitation Expenses," with respect to the Regulatory Limit,
means all the expenses of a Portfolio incurred during a
Computation Period excluding all expenses the exclusion of which
may be permitted by the Regulatory Limit and, with respect to
the Fixed Limit, means all the expenses of a Portfolio incurred
during a Computation Period excluding: (i) taxes, (ii)
portfolio brokerage commissions, (iii) interest, (iv)
distribution expenses, and (v) litigation and indemnification
expenses and other extraordinary expenses not incurred in the
ordinary course of the Trust's business.
(6) "Excess Amount" means the amount, if any by which a Portfolio's
Limitation Expenses for a specified period exceed the amount of
the applicable Expense Limit for the same period. Where
there is an Excess Amount with respect to both the Regulatory
Limit and the Fixed Limit, Excess Amount means the greater of
the two.
(7) "Maximum Advisory Compensation" means the total amount of the
compensation payable pursuant to section 5. of this Agreement
to the Adviser with respect to a Portfolio for a specified
period without any adjustment for an Excess Amount.
(8) "Current Advisory Compensation" means the amount of the
compensation payable pursuant to section 5. of this Agreement to
the Adviser with respect to a Portfolio for the last calendar
month of a Computation Period without any adjustment for an
Excess Amount.
b. If in any fiscal year there is an Excess Amount with respect to a
Portfolio, the Maximum Advisory Compensation due the Adviser under this
Agreement with respect to that Portfolio shall be reduced by such Excess
Amount, and the Adviser shall reimburse the Trust for any portion of the
Excess Amount that exceeds the Maximum Advisory Compensation.
c. The amount of the reduction and reimbursement referred to in paragraph b.
shall be determined as follows:
4
6
(i) For each calendar day, each Portfolio shall adjust the amount of
its daily accrual for the Maximum Advisory Compensation to make the
net amount of the compensation actually paid and accrued for
payment by the Trust to the Adviser with respect to the Portfolio
for the Computation Period then ended equal to the amount determined
by subtracting the Excess Amount for the Computation Period from the
Maximum Advisory Compensation for the Computation Period, or if such
Excess Amount exceeds such Maximum Advisory Compensation, to make
the net amount of the reimbursement actually paid and accrued for
payment by the Adviser to the Trust equal to the amount of such
excess.
(ii) Each month, the Trust shall reduce the amount of the Current
Advisory Compensation, or it shall accompany the payment of the
Current Advisory Compensation with an additional payment, or the
Adviser shall remit an amount to the Trust, which reduction,
additional payment or remittance shall be sufficient in amount, to
make the net amount of the compensation actually paid by the Trust
to the Adviser with respect to the Portfolio for the
Computation Period ended as of the last day of such month equal to
the amount determined by subtracting the Excess Amount for the
Computation Period from the Maximum Advisory Compensation for the
Computation Period, or if such Excess Amount exceeds such Maximum
Advisory Compensation, to make the net amount of the reimbursement
actually paid by the Adviser to the Trust equal to the amount of
such excess.
(iii) If the Excess Amount for a fiscal year should exceed the amount of
the Maximum Advisory Compensation for the fiscal year, the
excess shall be treated as a contribution to the capital of the
Trust by the Adviser to the extent necessary to permit the
Portfolio to maintain its status as a regulated investment company
under Subchapter M of the Internal Revenue Code.
d. The provisions of section 4 of the Agreement shall
continue in effect unless terminated by the Adviser on
30 days' written notice; provided that if the Advisory
Agreement or a Subadvisory Agreement with respect to a
portfolio is earlier terminated, the provisions of
section 4 shall terminate on the effective date of such
termination, but only with respect to the Portfolio or
Portfolios as to which the Advisory Agreement or
Subadvisory Agreement is terminated. Any termination
shall be subject to the settlement of obligations
previously incurred pursuant to section 4 of this
Agreement, with the Computation Period ending on the
effective date of such termination being deemed to be a
fiscal year for purposes of paragraphs b and c (iii) of
section 4. For purposes of this provision, a
termination shall not be deemed to have occurred with
respect to a Portfolio if the termination of a
Subadvisory Agreement is conditioned upon the
effectiveness of another Subadvisory Agreement with
respect to the same Portfolio.
5. COMPENSATION OF ADVISER
Subject to the provisions of section 4. of this
Agreement, the Trust will pay the Adviser with respect
to each Portfolio the compensation specified in
Appendix A of this Agreement.
6. NON-EXCLUSIVITY
The services of the Adviser to the Trust are not to be
deemed to be exclusive, and the Adviser shall be free
to render investment advisory or other services to
others (including other investment companies) and to
engage in other activities. It is understood and
agreed that the directors, officers, and employees of
the Adviser are not prohibited from engaging in any
other business activity or from rendering services to
any other person, or from serving as partners,
officers, directors, trustees or employees of any other
firm or corporation, including other investment
companies.
5
7
7. SUPPLEMENTAL ARRANGEMENTS
The Adviser may enter into arrangements with other
persons affiliated with the Adviser to better enable it
to fulfill its obligations under this Agreement for the
provision of certain personnel and facilities to the
Adviser.
8. CONFLICTS OF INTEREST
It is understood that Trustees, officers, agents and
shareholders of the Trust are or may be interested in
the Adviser as directors, officers, stockholders, or
otherwise; that directors, officers, agents and
stockholders of the Adviser are or may be interested in
the Trust as Trustees, officers, shareholders or
otherwise; that the Adviser may be interested in the
Trust; and that the existence of any such dual interest
shall not affect the validity hereof or of any
transactions hereunder except as otherwise provided in
the Agreement and Declaration of Trust of the Trust and
the Articles of Incorporation of the Adviser, respec
tively, or by specific provision of applicable law.
9. REGULATION
The Adviser shall submit to all regulatory and
administrative bodies having jurisdiction over the
services provided pursuant to this Agreement any
information, reports or other material which any such
body by reason of this Agreement may request or require
pursuant to applicable laws and regulations.
10. DURATION AND TERMINATION OF AGREEMENT
This Agreement shall become effective on the later of
its execution, the effective date of the Trust's
registration statement under the Securities Act of 1933
or the date of the meeting of the shareholders of the
Trust, at which meeting this Agreement is approved by
the vote of a majority of the outstanding voting
securities (as defined in the Investment Company Act)
of each of the Portfolios. The Agreement will continue
in effect for a period more than two years from the
date of its execution only so long as such continuance
is specifically approved at least annually either by
the Trustees of the Trust or by the vote of a majority
of the outstanding voting securities of each of the
Portfolios, provided that in either event such
continuance shall also be approved by the vote of a
majority of the Trustees of the Trust who are not
interested persons (as defined in the Investment
Company Act) of any party to this Agreement cast in
person at a meeting called for the purpose of voting on
such approval. The required shareholder approval of
the Agreement or of any continuance of the Agreement
shall be effective with respect to any Portfolio if a
majority of the outstanding voting securities of the
series (as defined in Rule 18f-2(h) under the
Investment Company Act) of shares of that Portfolio
votes to approve the Agreement or its continuance,
notwithstanding that the Agreement or its continuance
may not have been approved by a majority of the
outstanding voting securities of (a) any other
Portfolio affected by the Agreement or (b) all the
Portfolios of the Trust.
If the shareholders of any Portfolio fail to approve
the Agreement or any continuance of the Agreement, the
Adviser will continue to act as investment adviser with
respect to such Portfolio pending the required approval
of the Agreement or its continuance or of a new
contract with the Adviser or a different adviser or
other definitive action; provided, that the compensa
tion received by the Adviser in respect of such
Portfolio during such period will be no more than its
actual costs incurred in furnishing investment advisory
and management services to such Portfolio or the amount
it would have received under the Agreement in respect
of such Portfolio, whichever is less.
This Agreement may be terminated at any time, without
the payment of any penalty, by the Trustees of the
Trust, by the vote of a majority of the outstanding
voting securities of the Trust, or with respect to any
Portfolio by the vote of a majority of the outstanding
voting securities of such Portfolio, on sixty days'
written notice to the Adviser, or by the Adviser on
sixty days' written notice to the Trust.
6
8
This Agreement will automatically terminate, without the
payment of any penalty, in the event of its assignment
(as defined in the Investment Company Act).
11. PROVISION OF CERTAIN INFORMATION BY ADVISER
The Adviser will promptly notify the Trust in writing
of the occurrence of any of the following events:
a. the Adviser fails to be registered as an investment
adviser under the Investment Advisers Act or under the
laws of any jurisdiction in which the Adviser is
required to be registered as an investment adviser in
order to perform its obligations under this Agreement;
b. the Adviser is served or otherwise receives notice of
any action, suit, proceeding, inquiry or investigation,
at law or in equity, before or by any court, public
board or body, involving the affairs of the Trust; and
c. the chief executive officer or controlling stockholder
of the Adviser or the portfolio manager of any
Portfolio changes.
12. AMENDMENTS TO THE AGREEMENT
This Agreement may be amended by the parties only if
such amendment is specifically approved by the vote of
a majority of the outstanding voting securities of each
of the Portfolios affected by the amendment and by the
vote of a majority of the Trustees of the Trust who are
not interested persons of any party to this Agreement
cast in person at a meeting called for the purpose of
voting on such approval. The required shareholder ap
proval shall be effective with respect to any Portfolio
if a majority of the outstanding voting securities of
the series of shares of that Portfolio vote to approve
the amendment, notwithstanding that the amendment may
not have been approved by a majority of the outstanding
voting securities of (a) any other Portfolio affected
by the amendment or (b) all the Portfolios of the
Trust.
13. ENTIRE AGREEMENT
This Agreement contains the entire understanding and
agreement of the parties.
14. HEADINGS
The headings in the sections of this Agreement are
inserted for convenience of reference only and shall
not constitute a part hereof.
15. NOTICES
All notices required to be given pursuant to this
Agreement shall be delivered or mailed to the last
known business address of the Trust or Adviser in
person or by registered mail or a private mail or
delivery service providing the sender with notice of
receipt. Notice shall be deemed given on the date
delivered or mailed in accordance with this section.
16. SEVERABILITY
Should any portion of this Agreement for any reason be
held to be void in law or in equity, the Agreement
shall be construed, insofar as is possible, as if such
portion had never been contained herein.
7
9
17. GOVERNING LAW
The provisions of this Agreement shall be construed and
interpreted in accordance with the laws of The
Commonwealth of Massachusetts, or any of the applicable
provisions of the Investment Company Act. To the
extent that the laws of The Commonwealth of
Massachusetts, or any of the provisions in this
Agreement, conflict with applicable provisions of the
Investment Company Act, the latter shall control.
18. LIMITATION OF LIABILITY
The Declaration of Trust establishing the Trust, dated
September 29, 1988, as amended and restated February
18, 1994, a copy of which, together with all amendments
thereto (the "Declaration"), is on file in the office
of the Secretary of The Commonwealth of Massachusetts,
provides that the name "North American Security Trust"
[North American Funds] refers to the Trustees under the
Declaration collectively as Trustees, but not as
individuals or personally; and no Trustee, shareholder,
officer, employee or agent of the Trust shall be held
to any personal liability, nor shall resort be had to
their private property, for the satisfaction of any
obligation or claim, in connection with the affairs of
the Trust or any Portfolio thereof, but only the assets
belonging to the Trust, or to the particular Portfolio
with which the obligee or claimant dealt, shall be
liable.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed under seal by their duly
authorized officers as of the date first mentioned
above.
[SEAL] North American Funds
By:
------------------------------
Xxxx X. XxxXxxx III, President
[SEAL] NASL Financial Services, Inc.
By:
------------------------------
Xxxxxxx X. Xxxxxxxx, President
8
10
APPENDIX A
1. Value Equity Fund: .725% of the first $50,000,000,
.675% between $50,000,000 and $200,000,000, .625%
between $200,000,000 and $500,000,000 and .55% on the
excess over $500,000,000 of the current net assets of
the Portfolio.
2. Growth and Income Fund: .725% of the first $50,000,000,
.675% between $50,000,000 and $200,000,000, .625%
between $200,000,000 and $500,000,000 and .55% on the
excess over $500,000,000 of the current net assets of
the Portfolio.
3. Asset Allocation Fund: .725% of the first $50,000,000,
.675% between $50,000,000 and $200,000,000, .625%
between $200,000,000 and $500,000,000 and .55% on the
excess over $500,000,000 of the current net assets of
the Portfolio.
4. U.S. Government Securities Fund: .60% of the first $50
million, .60% between $50,000,000 and $200,000,000,
.525% between $200,000,000 and $500,000,000 and .475%
on the excess over $500,000,000 of the current net
assets of the Portfolio.
5. Investment Quality Bond Fund: .60% of the first $50
million, .60% between $50,000,000 and $200,000,000,
.525% between $200,000,000 and $500,000,000 and .475%
on the excess over $500,000,000 of the current net
assets of the Portfolio.
6. Money Market Fund: .20% of the first $50 million, .20%
between $50,000,000 and $200,000,000, .20% between
$200,000,000 and $500,000,000 and .145% on the excess
over $500,000,000 of the current net assets of the
Portfolio.
7. Global Growth Fund: .90% of the first $50 million, .90%
between $50,000,000 and $200,000,000, .70% between
$200,000,000 and $500,000,000 and .70% on the excess
over $500,000,000 of the current net assets of the
Portfolio.
8. National Municipal Bond Fund: .60% of the first $50
million, .60% between $50,000,000 and $200,000,000,
.60% between $200,000,000 and $500,000,000 and .60% on
the excess over $500,000,000 of the current net assets
of the Portfolio.
9. Strategic Income Fund: .75% of the first $50 million,
.70% between $50,000,000 and $200,000,000, .65% between
$200,000,000 and $500,000,000 and .60% on the excess
over $500,000,000 of the current net assets of the
Portfolio.
10. International Growth and Income Fund: .90% of the first
$50 million, .85% between $50,000,000 and $200,000,000,
.80% between $200,000,000 and $500,000,000 and .75% on
the excess over $500,000,000 of the current net assets
of the Portfolio.
11. Small/Mid Cap Fund: .925% of the first $50,000,000,
.900% between $50,000,000 and $200,000,000, .875%
between $200,000,000 and $500,000,000 and .850% on the
excess over $500,000,000 of the current value of the
net assets of the Portfolio.
12. International Small Cap Fund: 1.05% of the first
$50,000,000, 1.0% between $50,000,000 and $200,000,000,
.900% between $200,000,000 and $500,000,000 and .800%
on the excess over $500,000,000 of the average daily
value of the net assets of the Portfolio.
13. Growth Equity Fund: .900% of the first $50,000,000,
.850% between $50,000,000 and $200,000,000, .825%
between $200,000,000 and $500,000,000 and .800% on the
excess over $500,000,000 of the average daily value of
the net assets of the Portfolio.
9
11
The Percentage Fee for each Portfolio shall be accrued
for each calendar day and the sum of the daily fee
accruals shall be payable monthly to the Adviser. The
daily fee accruals will be computed by multiplying the
fraction of one over the number of calendar days in the
year by the applicable annual rate described in the
preceding paragraph, and multiplying this product by
the net assets of the Portfolio as determined in
accordance with the Fund's prospectus and statement of
additional information as of the close of business on
the previous business day on which the Fund was open
for business.
If this Agreement becomes effective or terminates
before the end of any month, the fee for the period
from the effective date to the end of such month or
from the beginning of such month to the date of
termination, as the case may be, shall be prorated
according to the proportion which such period bears to
the full month in which such effectiveness or
termination occurs.
10
12
APPENDIX B
----------
The Fixed Limit for each Portfolio for purposes of
paragraph 4.a.(3) shall be:
PORTFOLIO PERCENT
--------- -------
Money Market Fund .50%
Investment Quality Bond Fund .90%
U.S. Government Securities Fund .90%
Value Equity Fund .99%
Growth and Income Fund .99%
Asset Allocation Fund .99%
Global Growth Fund 1.40%
National Municipal Bond Fund .85%
Strategic Income Fund 1.15%
International Growth and Income Fund 1.40%
Small/Mid Cap Fund 1.325%
International Small Cap Fund 1.55%
Growth Equity Fund 1.30%
11
