INVESTMENT ADVISORY AGREEMENT
AGREEMENT made this ____ day of ______________, 1995 by and between ▇▇▇▇▇▇▇
Alpha Strategies, a Delaware business trust (the "Trust") and ▇▇▇▇▇▇▇-▇▇▇▇
Global Investment Management, Inc., a Delaware corporation (the "Advisor").
1. Duties of Advisor. The Trust hereby appoints the Advisor to act as
investment advisor to The Japan Alpha Fund (the "Fund") for the period
and on such terms set forth in this Agreement. The Trust employs the
Advisor to manage the investment and reinvestment of the assets of the Fund,
to determine in its discretion the assets to be held uninvested, to provide
the Trust with records concerning the Advisor's activities which the Trust
is required to maintain, and to render regular reports to the Trust's
officers and Board of Trustees concerning the Advisor's discharge of the
foregoing responsibilities. The Advisor shall discharge the foregoing
responsibilities subject to the control of the officers and the Board of
Trustees of the Trust, and in compliance with the objectives, policies and
limitations set forth in the Trust's Prospectus and Statement of Additional
Information. The Advisor accepts such employment and agrees to render the
services and to provide, at its own expense, the office space, furnishings,
equipment and the personnel required by it to perform the services on the
terms and for the compensation provided herein.
2. Portfolio Transactions. The Advisor shall provide the Fund with a
trading department. The Advisor shall select the brokers or dealers that
will execute the purchases and sales of securities for the Fund, and is
directed to use its best efforts to ensure that the bestavailable price and
most favorable execution of securities transactions for the Fund are obtained.
The Fund will bear all expenses associated with its investment activities,
including, without limitation, brokerage commissions and custody expenses.
Subject to policies established by the Board of Trustees of the Trust and
communicated to the Advisor, it is understood that the Advisor will not be
deemed to have acted unlawfully, or to have breached a fiduciary duty to the
Trust or in respect of the Fund, or to be in breach of any obligation owing to
the Trust or in respect of the Fund under this Agreement, or otherwise, solely
by reason of its having caused the Fund to pay a member of a securities
exchange, a broker or a dealer a commission for effecting a securities
transaction for the Fund in excess of the amount of commission that another
member of an exchange, broker or dealer would have charged, if the Advisor
determines in good faith that the commission paid was reasonable in relation
to the brokerage or research services provided by such member, broker or
dealer, viewed in terms of that particular transaction or the Advisor's overall
responsibilities with respect to the accounts, including the Fund, as to which
it exercises investment discretion. The Advisor will promptly communicate to
the officers and Trustees of the Trust such information relating to Fund
transactions as they may reasonably request.
3. Compensation of the Advisor. For the services to be rendered by the
Advisor as provided in Section 1 and 2 of this Agreement, the Fund shall pay
to the Advisor within five business days after the end of each calendar month,
a monthly fee of one twelfth of 0.98% of the Fund's average daily net assets
for the month. The net asset value shall be calculated in the manner provided
in the Fund's Prospectus and Statement of Additional Information then in
effect.
In the event of termination of this Agreement, the fee provided in this Section
3 shall be paid on a pro rate basis, based on the number of days during which
this Agreement was in effect.
4. Reports. The Fund and the Advisor agree to furnish to each other such
information regarding their operations with regard to their affairs as each may
reasonably request.
5. Status of Advisor. The services of the Advisor to the Fund are not to be
deemed exclusive, and the Advisor shall be free to render similar services to
others so long as its services to the Fund are not impaired thereby.
6. Liability of Advisor. In the absence of willful misfeasance, bad faith,
gross negligence or reckless disregard by the Advisor of its obligations and
duties hereunder, the Advisor shall not be subject to any liability whatsoever
to the Fund, or to any shareholder of the Fund, for any error of judgement,
mistake of law or any other act or omission in the course of, or connected
with, directly or in any way indirectly, 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 Fund.
7. Duration and Termination. This Agreement shall become effective on
__________________ 1995, provided that first it is approved by the Board
of Trustees of the Trust, including a majority of those trustees who are not
parties to this Agreement or interested persons of any party hereto, in the
manner provided in section 15(c) of the Investment Company Act of 1940, and by
the holders of a majority of the outstanding voting securities of the Fund; and
shall continue in effect until __________________ 1997.
Thereafter, this Agreement may continue in effect only if such continuance is
approved at least annually by: (i) the Trust's Board of Trustees or, (ii) by
the vote of a majority of the outstanding voting securities of the Fund; and
in either event by a vote of a majority of those trustees of the Trust who are
not parties to this Agreement or interested persons of any such party in the
manner provided in section 15(c) of the Investment Company Act of 1940. This
Agreement may be terminated by the Trust, at any time, without the payment of
any penalty, by the Board of Trustees of the Trust or by vote of the holders of
a majority of the outstanding voting securities of the Fund on 60 days'
written notice to the Advisor. This Agreement may be terminated by the
Advisor, at any time, without the payment of any penalty, upon not more
than 60 days' written notice to the Trust. This Agreement will automatically
terminate in the event of its 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 8, the terms "assignment" "interested person",
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 and Rule 18f-2 thereunder.
8. Name of Advisor. The parties agree that the Advisor has a proprietary
interest in the name "▇▇▇▇▇▇▇ Alpha Strategies", and the Trust agrees to
promptly take such action as may be necessary to delete from its corporate name
and/or the name of the Trust any reference to the name of the Advisor or the
name "▇▇▇▇▇▇▇ Alpha Strategies," promptly after receipt from the Advisor of a
written request therefore.
9. 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.
10. Governing Law. This agreement shall be governed by and construed and
interpreted in accordance with the laws of the State of New York.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of ______ day of ____________, 1995.
ATTEST: ▇▇▇▇▇▇▇ ALPHA STRATEGIES
____________________________ ______________________________
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, Esq., SecretaryJames ▇. ▇▇▇▇▇▇▇, ▇▇., President
ATTEST: ▇▇▇▇▇▇▇-▇▇▇▇ GLOBAL
INVESTMENT MANAGEMENT, INC.
____________________________ ______________________________
, Secretary ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, ▇▇., Chairman