EXHIBIT 77Q1(E)
INVESTMENT ADVISORY AGREEMENT AMENDED MAY 4, 2001
INVESTMENT ADVISORY CONTRACT
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This Contract is made this 4th day of May, 2001, between Stratevest
Investment Advisors, a registered investment adviser and a division of The
Stratevest Group, N.A., having its principal place of business in Burlington,
Vermont (the "Adviser"), and Stratevest Funds, aNULL Delaware 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 of the Trust ("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 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, 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 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 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) 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 VII 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 parties hereto acknowledge that Banknorth Group, or its
subsidiary, The Stratevest Group, N.A., has reserved the right to grant the
non-exclusive use of the name Stratevest Funds or any derivative thereof to any
other investment company, investment company portfolio, investment adviser,
distributor or other business enterprise, and to withdraw from the Trust and one
or more of the Funds the use of the name Stratevest Funds. The name Stratevest
Funds will continue to be used by the Trust and each Fund so long as such use is
mutually agreeable to Banknorth Group, and its subsidiary, The Stratevest Group,
N.A., and the Trust.
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.
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EXHIBIT A
to the
Investment Advisory Contract
For all services rendered by Adviser hereunder, each Fund shall pay to
Adviser, and Adviser agrees to accept as full compensation for all services
rendered hereunder, the annual investment advisory fee provided below. The fee
shall be accrued daily at the rate of 1/365th of the applicable annual rate
provided below, applied to the daily net assets of the Fund, and paid monthly to
Adviser.
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STRATEVEST FUNDS ANNUAL ADVISORY FEE
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Stratevest Large Cap Value Fund 0.75%
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Stratevest Large Cap Growth Fund 0.75%
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Stratevest Large Cap Core Fund 0.75%
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Stratevest Mid Cap Core Fund 0.75%
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Stratevest Vermont Municipal Bond Fund 0.50%
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Stratevest Intermediate Bond Fund 0.60%
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Witness the due execution hereof this 4th day of May, 2001.
Stratevest Investment Advisors
By: /s/ Xxxx X. Xxxxxxxx
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Name: Xxxx X. Xxxxxxxx
Title: Executive Vice President
Stratevest Funds
By: /s/ Xxxx X. Xxxxxxxxx
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Name: Xxxx X. Xxxxxxxxx
Title: Vice President
