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5(b)
INVESTMENT ADVISORY CONTRACT
AGREEMENT made this day of February, 1998 by and between ARK Funds,
a Massachusetts business trust (the "Fund"), and Allied Investment Advisors,
Inc., a Maryland corporation (the "Adviser").
WHEREAS, the Fund is registered as an open-end, management series
investment company under the Investment Company Act of 1940, as amended (the
"Investment Company Act"); and
WHEREAS, the Fund currently offers nineteen series of units of beneficial
interest ("Shares"), each series representing interests in a separate investment
portfolio, and may offer other series of Shares from time to time (all such
series of Shares hereinafter collectively referred to as the "Portfolios"); and
WHEREAS, the Fund desires to retain the Adviser to render investment
advisory services to the Fund and to the Portfolios, subject to and in
accordance with the requirements of the Investment Company Act; and
WHEREAS, the Adviser is willing to render such services under the terms of
this Agreement:
NOW, THEREFORE, in consideration of the promises and mutual covenants
herein contained, and intending to be legally bound hereby, it is agreed between
the parties hereto as follows:
1. Appointment of Adviser. The Fund hereby appoints the Adviser to act as
investment adviser to the Fund and its Portfolios for the period and on such
terms as are set forth in this Agreement. The Adviser hereby accepts such
appointment and agrees to render the services herein set forth for the
compensation herein provided.
2. Duties as Investment Adviser. Subject to the supervision of the Fund's
Board of Trustees ("Board"), the Adviser will be responsible for providing a
continuous investment program for the Fund's Portfolios, including the provision
of investment research and management with respect to all securities and
investments and cash equivalents purchased, sold or held in the Portfolios and
the selection of brokers and dealers through which securities transactions for
the respective Portfolios will be executed. In carrying out its responsibilities
under this Agreement, the Adviser will at all times act in accordance with the
investment objectives, policies and restrictions of each Portfolio as stated in
the Fund's registration statement as it may be amended from time to time
("Registration Statement") as well as all applicable rules and regulations of
the Securities and Exchange Commission.
The Adviser further agrees that it will:
(a) promptly advise the Fund's custodian and accounting services agent
of each purchase and sale, as the case may be, made on behalf of each of
the Portfolios of any security or other investment specifying in each case;
the name and quantity of the investment purchased or sold, the unit and
aggregate purchase or sale price, commission paid, the market on which the
transaction was effected, the trade date, the settlement date, the identity
of the effecting broker or dealer and/or such other information as may be
reasonably requested by the custodian and accounting services agent, all in
such manner as may from time to time be reasonably requested by them;
(b) provide, in a timely manner, such information as may be reasonably
requested by the Fund or its authorized agent in connection with the
computation of the net asset value and the net income of each Portfolio in
accordance with the procedures prescribed in the Registration Statement or
as more frequently requested by the Board; provided, however, that the
Adviser shall not be responsible for any such computation or for the
calculation of the net asset value per share of any of the Fund's
Portfolios; and
(c) render regular reports to the Board concerning the Adviser's
performance of its responsibilities under this Agreement and such other
periodic and special reports as the Board may request; in particular, the
Adviser agrees that it will attend meetings of the Board or validly
constituted committees thereof.
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