DUNHILL INVESTMENT TRUST
485BPOS, EX-99.23.G, 2000-06-01
Previous: DUNHILL INVESTMENT TRUST, 485BPOS, 2000-06-01
Next: DUNHILL INVESTMENT TRUST, 485BPOS, EX-99.23.H.III, 2000-06-01




                                CUSTODY AGREEMENT
                                -----------------

     This AGREEMENT, dated as of May 18, 2000, by and between DUNHILL INVESTMENT
TRUST (the "Trust"),  a business trust  organized under the laws of the State of
Ohio,  acting  with  respect to the  Regional  Opportunity  Fund:  Ohio  Indiana
Kentucky (the "Fund"),  a series of the Trust operated and  administered  by the
Trust, and FIRSTAR BANK, N.A., a national banking association (the "Custodian").

                              W I T N E S S E T H:
                              --------------------

     WHEREAS,  the Trust desires that the Fund's Securities and cash be held and
administered by the Custodian pursuant to this Agreement; and

     WHEREAS, the Trust is an open-end management  investment company registered
under the Investment Company Act of 1940, as amended (the "1940 Act"); and

     WHEREAS,   the  Custodian   represents   that  it  is  a  bank  having  the
qualifications prescribed in Section 26(a)(i) of the 1940 Act;

     NOW, THEREFORE,  in consideration of the mutual agreements herein made, the
Trust and the Custodian hereby agree as follows:

                                    ARTICLE I
                                    ---------
                                   DEFINITIONS
                                   -----------

     Whenever used in this Agreement,  the following  words and phrases,  unless
the context otherwise requires, shall have the following meanings:

     1.1  "AUTHORIZED  PERSON" means any Officer or other person duly authorized
by  resolution  of the Board of Trustees to give Oral  Instructions  and Written
Instructions  on behalf  of the  Trust and named in  Exhibit A hereto or in such
resolutions  of the  Board  Of  Trustees,  certified  by an  Officer,  as may be
received by the Custodian from time to time.

                                      -1-
<PAGE>

     1.2 "BOARD OF TRUSTEES"  shall mean the Trustees  from time to time serving
under the  Trust's  Agreement  and  Declaration  of Trust,  as from time to time
amended.

     1.3 "BOOK-ENTRY  SYSTEM" shall mean a federal book-entry system as provided
in Subpart O of  Treasury  Circular  No. 300, 31 CFR 306, in Subpart B of 31 CFR
Part  350,  or in  such  book-entry  regulations  of  federal  agencies  as  are
substantially in the form of such Subpart O.

     1.4 "BUSINESS DAY" shall mean any day recognized as a settlement day by The
New York Stock Exchange, Inc. and any other day for which the Trust computes the
net asset value of Shares of the Fund.

     1.5 "FUND  CUSTODY  ACCOUNT"  shall mean any of the accounts in the name of
the Fund, which is provided for in Section 3.2 below.

     1.6 "NASD" shall mean The National Association of Securities Dealers, Inc.

     1.7 "OFFICER" shall mean the Chairman,  President,  any Vice President, any
Assistant Vice President, the Secretary, any Assistant Secretary, the Treasurer,
or any Assistant Treasurer of the Trust.

     1.8 "ORAL  INSTRUCTIONS"  shall mean instructions orally transmitted to and
accepted by the Custodian because such instructions are: (i) reasonably believed
by the Custodian to have been given by an Authorized  Person,  (ii) recorded and
kept among the records of the Custodian made in the ordinary  course of business
and (iii)  orally  confirmed  by the  Custodian.  The Trust shall cause all Oral
Instructions  to be  confirmed by Written  Instructions  prior to the end of the
next Business Day. If such Written Instructions confirming Oral Instructions are
not received by the Custodian prior to a transaction,  it shall in no way affect
the validity of the  transaction or the  authorization  thereof by the Trust. If
Oral  Instructions vary from the Written  Instructions  which purport to confirm
them,  the  Custodian  shall  notify  the Trust of such  variance  but such Oral
Instructions will govern unless the Custodian has not yet acted.

                                      -2-
<PAGE>

     1.9  "PROPER   INSTRUCTIONS"   shall  mean  Oral  Instructions  or  Written
Instructions.  Proper  Instructions may be continuing Written  Instructions when
deemed appropriate by both parties.

     1.10  "SECURITIES  DEPOSITORY"  shall mean The Depository Trust Company and
(provided that Custodian shall have received a copy of a resolution of the Board
of Trustees,  certified by an Officer,  specifically  approving  the use of such
clearing  agency  as a  depository  for the  Fund)  any  other  clearing  agency
registered with the Securities and Exchange  Commission under Section 17A of the
Securities and Exchange Act of 1934 as amended (the "1934 Act"), which acts as a
system for the  central  handling  of  Securities  where all  Securities  of any
particular  class or series of an issuer deposited within the system are treated
as fungible  and may be  transferred  or pledged by  bookkeeping  entry  without
physical delivery of the Securities.

     1.11 "SECURITIES" shall include,  without limitation,  common and preferred
stocks, bonds, call options, put options,  debentures,  notes, bank certificates
of  deposit,   bankers'   acceptances,   mortgage-backed   securities  or  other
obligations,  and any certificates,  receipts,  warrants or other instruments or
documents representing rights to receive, purchase or subscribe for the same, or
evidencing or representing any other rights or interests therein, or any similar
property  or  assets  that the  Custodian  has the  facilities  to clear  and to
service.

     1.12  "SHARES"  shall mean the units of beneficial  interest  issued by the
Trust on account of the Fund.

     1.13  "SUB-CUSTODIAN"  shall  mean and  include  (i) any  branch of a "U.S.
Bank," as that  term is  defined  in Rule  17f-5  under  the 1940 Act,  (ii) any
"Eligible  Foreign  Custodian,"  as that term is defined in Rule 17f-5 under the
1940  Act,  having a  contract  with  the  Custodian  which  the  Custodian  has
determined  will  provide  reasonable  care of assets  of the Fund  based on the
standards specified in Section 3.3 below. Such contract shall include provisions
that  provide:  (i)  for  indemnification  or  insurance  arrangements  (or  any
combination of the foregoing) such that

                                      -3-
<PAGE>

the Fund will be adequately protected against the risk of loss of assets held in
accordance  with such contract;  (ii) that the Fund's assets will not be subject
to any right, charge,  security interest,  lien or claim of any kind in favor of
the  Sub-Custodian  or its  creditors  except a claim of payment  for their safe
custody  or  administration,  in the case of cash  deposits,  liens or rights in
favor of creditors of the Sub-Custodian arising under bankruptcy, insolvency, or
similar  laws;  (iii) that  beneficial  ownership  for the Fund's assets will be
freely  transferable  without  the payment of money or value other than for safe
custody  or  administration;  (iv)  that  adequate  records  will be  maintained
identifying  the  assets as  belonging  to the Fund or as being  held by a third
party  for the  benefit  of the Fund;  (v) that the  Fund's  independent  public
accountants  will be  given  access  to those  records  or  confirmation  of the
contents of those records;  and (vi) that the Fund will receive periodic reports
with respect to the safekeeping of the Fund's assets, including, but not limited
to,  notification of any transfer to or from the Fund's account or a third party
account  containing  assets held for the benefit of the Fund.  Such contract may
contain,  in lieu of any or all of the provisions  specified  above,  such other
provisions that the Custodian  determines will provide,  in their entirety,  the
same or a greater level of care and  protection for Fund assets as the specified
provisions, in their entirety.

     1.14 "WRITTEN INSTRUCTIONS" shall mean (i) written communications  actually
received  by  the  Custodian  and  signed  by  an  Authorized  Person,  or  (ii)
communications  by telex  or any  other  such  system  from one or more  persons
reasonably  believed  by  the  Custodian  to be  Authorized  Persons,  or  (iii)
communications  between  electro-mechanical  or electronic devices provided that
the use of such devices and the  procedures  for the use thereof shall have been
approved by resolutions of the Board of Trustees, a copy of which,  certified by
an Officer, shall have been delivered to the Custodian.

                                      -4-
<PAGE>

                                   ARTICLE II
                                   ----------
                            APPOINTMENT OF CUSTODIAN
                            ------------------------

     2.1 APPOINTMENT. The Trust hereby constitutes and appoints the Custodian as
custodian of all  Securities  and cash owned by or in the possession of the Fund
at any time during the period of this Agreement.

     2.2 ACCEPTANCE.  The Custodian hereby accepts appointment as such custodian
and agrees to perform the duties thereof as hereinafter set forth.

     2.3  DOCUMENTS TO BE  FURNISHED.  The  following  documents,  including any
amendments thereto, will be provided contemporaneously with the execution of the
Agreement to the Custodian by the Trust:

          a. A copy of the  Agreement  and  Declaration  of Trust  of the  Trust
     certified by the Secretary;

          b. A copy of the Bylaws of the Trust certified by the Secretary;

          c. A copy of the  resolution  of the  Board of  Trustees  of the Trust
     appointing the Custodian, certified by the Secretary;

          d. A copy of the then current Prospectus of the Fund; and

          e. A certification of the President and Secretary of the Trust setting
     forth the names and  signatures  of the  current  Officers of the Trust and
     other Authorized Persons.

     2.4 NOTICE OF APPOINTMENT OF DIVIDEND AND TRANSFER AGENT.  The Trust agrees
to notify the Custodian in writing of the appointment,  termination or change in
appointment of any Dividend and Transfer Agent of the Fund.

                                      -5-
<PAGE>

                                   ARTICLE III
                                   -----------
                         CUSTODY OF CASH AND SECURITIES
                         ------------------------------

     3.1 SEGREGATION. All Securities and non-cash property held by the Custodian
for the account of the Fund (other than  Securities  maintained  in a Securities
Depository or  Book-Entry  System)  shall be  physically  segregated  from other
Securities and non-cash  property in the possession of the Custodian  (including
the Securities and non-cash property of the other funds) and shall be identified
as subject to this Agreement.

     3.2 FUND CUSTODY  ACCOUNTS.  The  Custodian  shall open and maintain in its
trust  department  a custody  account in the name of the Trust  coupled with the
name of the Fund, subject only to draft or order of the Custodian,  in which the
Custodian  shall enter and carry all  Securities,  cash and other  assets of the
Fund which are delivered to it.

     3.3 APPOINTMENT OF AGENTS. (a) In its discretion, the Custodian may appoint
one  or  more   Sub-Custodians   to  act  as  Securities   Depositories   or  as
sub-custodians  to hold  Securities  and cash of the Fund and to carry  out such
other provisions of this Agreement as it may determine,  provided, however, that
the appointment of any such agents and maintenance of any Securities and cash of
the Fund shall be at the Custodian's expense and shall not relieve the Custodian
of any of its obligations or liabilities under this Agreement.

     (b) If,  after  the  initial  approval  of  Sub-Custodians  by the Board of
Trustees in connection  with this  Agreement,  the  Custodian  wishes to appoint
other  Sub-Custodians  to hold property of the Fund, it will so notify the Trust
and provide it with information  reasonably  necessary to determine any such new
Sub-Custodian's  eligibility  under Rule 17f-5  under the 1940 Act,  including a
copy of the proposed agreement with such  Sub-Custodian.  The Trust shall at the
meeting of the Board of  Trustees  next  following  receipt  of such  notice and
information give a written approval or disapproval of the proposed action.

                                      -6-
<PAGE>

     (c) The  Agreement  between the  Custodian  and each  Sub-Custodian  acting
hereunder   shall   contain   the   required   provisions   set  forth  in  Rule
17f-5(a)(1)(iii).

     (d) At the  end of each  calendar  quarter,  the  Custodian  shall  provide
written  reports  notifying  the  Board  of  Trustees  of the  placement  of the
Securities  and  cash of the Fund  with a  particular  Sub-Custodian  and of any
material changes in the Fund's  arrangements.  The Custodian shall promptly take
such  steps  as may  be  required  to  withdraw  assets  of the  Fund  from  any
Sub-Custodian  that has ceased to meet the  requirements of Rule 17f-5 under the
1940 Act.

     (e) With  respect to its  responsibilities  under  this  Section  3.3,  the
Custodian  hereby  warrants to the Trust that it agrees to  exercise  reasonable
care,  prudence and  diligence  such as a person having  responsibility  for the
safekeeping  of property of the Fund.  The Custodian  further  warrants that the
Fund's  assets  will be  subject  to  reasonable  care,  based on the  standards
applicable  to  custodians  in the  relevant  market,  if  maintained  with each
Sub-Custodian, after considering all factors relevant to the safekeeping of such
assets,  including,  without  limitation:  (i)  the  Sub-Custodian's  practices,
procedures,  and internal controls,  including, but not limited to, the physical
protections available for certificated securities (if applicable), the method of
keeping custodial records, and the security and data protection practices;  (ii)
whether  the  Sub-Custodian  has the  requisite  financial  strength  to provide
reasonable care for Fund assets;  (iii) the  Sub-Custodian's  general reputation
and  standing  and,  in the  case of a  Securities  Depository,  the  Securities
Depository's operating history and number of participants;  and (iv) whether the
Fund will have  jurisdiction  over and be able to enforce  judgments against the
Sub-Custodian, such as

                                      -7-
<PAGE>

by virtue of the  existence  of any offices of the  Sub-Custodian  in the United
States or the  Sub-Custodian's  consent  to  service  of  process  in the United
States.

     (f) The Custodian shall  establish a system to monitor the  appropriateness
of  maintaining  the  Fund's  assets  with a  particular  Sub-Custodian  and the
contract governing the Fund's arrangements with such Sub-Custodian.

     3.4 DELIVERY OF ASSETS TO CUSTODIAN.  The Trust shall deliver,  or cause to
be  delivered,  to the Custodian  all of the Fund's  Securities,  cash and other
assets,  including (a) all payments of income, payments of principal and capital
distributions  received  by the Fund with  respect to such  Securities,  cash or
other assets owned by the Fund at any time during the period of this  Agreement,
and (b) all cash received by the Fund for the issuance,  at any time during such
period,  of Shares.  The Custodian shall not be responsible for such Securities,
cash or other assets until actually received by it.

     3.5  SECURITIES  DEPOSITORIES  AND  BOOK-ENTRY  SYSTEMS.  The Custodian may
deposit and/or maintain Securities of the Fund in a Securities  Depository or in
a Book-Entry System, subject to the following provisions:

     (a)  Prior  to a  deposit  of  Securities  of the  Fund  in any  Securities
     Depository or Book-Entry System, the Trust shall deliver to the Custodian a
     resolution of the Board of Trustees,  certified by an Officer,  authorizing
     and  instructing  the  Custodian  on an  on-going  basis to deposit in such
     Securities  Depository or  Book-Entry  System all  Securities  eligible for
     deposit therein and to make use of such Securities Depository or Book-Entry
     System  to the  extent  possible  and  practical  in  connection  with  its
     performance hereunder,  including,  without limitation,  in connection with
     settlements of purchases and sales of Securities,  loans of Securities, and
     deliveries  and  returns  of  collateral  consisting  of  Securities.   (b)
     Securities of the Fund kept in a Book-Entry System or Securities Depository
     shall be kept in an account ("Depository Account") of the Custodian in such
     Book-Entry System or Securities  Depository which includes only assets held
     by the Custodian as a fiduciary, custodian or otherwise for customers.

                                      -8-
<PAGE>

     (c) The records of the  Custodian  with respect to  Securities  of the Fund
     maintained  in a  Book-Entry  System or  Securities  Depository  shall,  by
     book-entry, identify such Securities as belonging to the Fund.

     (d) If  Securities  purchased  by the Fund  are to be held in a  Book-Entry
     System  or  Securities  Depository,   the  Custodian  shall  pay  for  such
     Securities  upon (i)  receipt  of  advice  from the  Book-Entry  System  or
     Securities  Depository that such  Securities  have been  transferred to the
     Depository  Account,  and (ii) the making of an entry on the records of the
     Custodian to reflect such payment and transfer for the account of the Fund.
     If  Securities  sold  by the  Fund  are  held  in a  Book-Entry  System  or
     Securities  Depository,  the Custodian  shall transfer such Securities upon
     (i) receipt of advice from the Book-Entry  System or Securities  Depository
     that payment for such  Securities  has been  transferred  to the Depository
     Account, and (ii) the making of an entry on the records of the Custodian to
     reflect such transfer and payment for the account of the Fund.

     (e) The  Custodian  shall  provide  the Trust  with  copies  of any  report
     (obtained  by  the  Custodian  from  a  Book-Entry   System  or  Securities
     Depository  in  which  Securities  of the Fund  are  kept) on the  internal
     accounting controls and procedures for safeguarding Securities deposited in
     such Book-Entry System or Securities Depository.

     (f)  Anything  to the  contrary  in  this  Agreement  notwithstanding,  the
     Custodian  shall be  liable to the Trust for any loss or damage to the Fund
     resulting (i) from


                                      -9-
<PAGE>

     the use of a Book-Entry  System or  Securities  Depository by reason of any
     negligence  or  willful   misconduct  on  the  part  of  Custodian  or  any
     Sub-Custodian  appointed  pursuant  to  Section  3.3 above or any of its or
     their   employees,   or  (ii)  from   failure  of  Custodian  or  any  such
     Sub-Custodian  to enforce  effectively such rights as it may have against a
     Book-Entry  System or Securities  Depository.  At its  election,  the Trust
     shall be  subrogated  to the rights of the  Custodian  with  respect to any
     claim  against a Book-Entry  System or  Securities  Depository or any other
     person  from any loss or  damage to the Fund  arising  from the use of such
     Book-Entry System or Securities  Depository,  if and to the extent that the
     Fund has not been made whole for any such loss or damage.

     3.6  DISBURSEMENT  OF MONEYS FROM FUND  CUSTODY  ACCOUNT.  Upon  receipt of
Proper  Instructions,  the Custodian shall disburse moneys from the Fund Custody
Account but only in the following cases:

     (a) For the purchase of Securities for the Fund but only in accordance with
     Section 4.1 of this Agreement and only (i) in the case of Securities (other
     than  options  on  Securities,  futures  contracts  and  options on futures
     contracts),  against the delivery to the  Custodian  (or any  Sub-Custodian
     appointed  pursuant to Section 3.3 above) of such Securities  registered as
     provided  in Section 3.9 below or in proper  form for  transfer,  or if the
     purchase of such  Securities  is effected  through a  Book-Entry  System or
     Securities  Depository,  in  accordance  with the  conditions  set forth in
     Section  3.5  above;  (ii) in the case of options  on  Securities,  against
     delivery to the Custodian (or such  Sub-Custodian)  of such receipts as are
     required by the customs prevailing among dealers in such options;  (iii) in
     the case

                                      -10-
<PAGE>

     of futures contracts and options on futures contracts,  against delivery to
     the Custodian (or such Sub-Custodian) of evidence of title thereto in favor
     of the Fund or any nominee  referred  to in Section 3.9 below;  and (iv) in
     the case of  repurchase  or  reverse  repurchase  agreements  entered  into
     between  the Trust  and a bank  which is a member  of the  Federal  Reserve
     System  or  between  the Trust  and a  primary  dealer  in U.S.  Government
     securities,   against  delivery  of  the  purchased  Securities  either  in
     certificate form or through an entry crediting the Custodian's account at a
     Book-Entry System or Securities Depository with such Securities;

     (b) In connection with the conversion,  exchange or surrender, as set forth
     in Section 3.7(f) below, of Securities owned by the Fund;

     (c) For the payment of any dividends or capital gain distributions declared
     by the Fund;

     (d) In payment of the redemption price of Shares as provided in Section 5.1
     below;

     (e) For the  payment of any  expense  or  liability  incurred  by the Fund,
     including but not limited to the following  payments for the account of the
     Fund: interest;  taxes;  administration,  investment advisory,  accounting,
     auditing,  transfer  agent,  custodian,  trustee and legal fees;  and other
     operating expenses of the Fund; in all cases,  whether or not such expenses
     are to be in whole or in part capitalized or treated as deferred expenses;

     (f) For transfer in accordance  with the provisions of any agreement  among
     the Trust, the Custodian and a broker-dealer  registered under the 1934 Act
     and a member of the NASD,  relating to compliance with rules of The Options
     Clearing Corporation and of any registered national securities exchange (or
     of any similar

                                      -11-
<PAGE>

     organization or  organizations)  regarding escrow or other  arrangements in
     connection with transactions by the Fund;

     (g) For transfer in accordance  with the  provision of any agreement  among
     the Trust,  the Custodian,  and a futures  commission  merchant  registered
     under the Commodity  Exchange Act, relating to compliance with the rules of
     the Commodity Futures Trading Commission and/or any contract market (or any
     similar  organization  or  organizations)  regarding  account  deposits  in
     connection with transactions by the Fund;

     (h)  For  the  funding  of  any   uncertificated   time  deposit  or  other
     interest-bearing  account  with  any  banking  institution  (including  the
     Custodian), which deposit or account has a term of one year or less; and

     (i) For any other proper  purpose,  but only upon  receipt,  in addition to
     Proper  Instructions,  of a copy of a resolution  of the Board of Trustees,
     certified by an Officer, specifying the amount and purpose of such payment,
     declaring  such purpose to be a proper  corporate  purpose,  and naming the
     person or persons to whom such payment is to be made.

     3.7  DELIVERY OF  SECURITIES  FROM FUND  CUSTODY  ACCOUNT.  Upon receipt of
Proper Instructions, the Custodian shall release and deliver Securities from the
Fund Custody Account but only in the following cases:

     (a)  Upon  the  sale of  Securities  for the  account  of the Fund but only
     against receipt of payment therefor in cash, by certified or cashiers check
     or bank credit;

     (b)  In  the  case  of a sale  effected  through  a  Book-Entry  System  or
     Securities  Depository,  in accordance  with the  provisions of Section 3.5
     above;

     (c) To an offeror's  depository  agent in  connection  with tender or other
     similar offers for Securities of the Fund; provided that, in any such case,
     the cash or other

                                      -12-
<PAGE>

     consideration is to be delivered to the Custodian;

     (d) To the issuer  thereof or its agent (i) for  transfer  into the name of
     the Fund, the Custodian or any Sub-Custodian  appointed pursuant to Section
     3.3 above,  or of any nominee or nominees of any of the foregoing,  or (ii)
     for  exchange  for a different  number of  certificates  or other  evidence
     representing  the same aggregate  face amount or number of units;  provided
     that,  in any such case,  the new  Securities  are to be  delivered  to the
     Custodian;

     (e) To the broker selling  Securities,  for  examination in accordance with
     the "street delivery" custom;

     (f)  For   exchange  or   conversion   pursuant  to  any  plan  or  merger,
     consolidation,  recapitalization,  reorganization  or  readjustment  of the
     issuer  of such  Securities,  or  pursuant  to  provisions  for  conversion
     contained  in  such  Securities,  or  pursuant  to any  deposit  agreement,
     including surrender or receipt of underlying  Securities in connection with
     the issuance or cancellation of depository receipts;  provided that, in any
     such case,  the new Securities and cash, if any, are to be delivered to the
     Custodian;

     (g) Upon receipt of payment therefor  pursuant to any repurchase or reverse
     repurchase agreement entered into by the Fund;

     (h) In the  case of  warrants,  rights  or  similar  Securities,  upon  the
     exercise  thereof,  provided that, in any such case, the new Securities and
     cash, if any, are to be delivered to the Custodian;

     (i) For delivery in  connection  with any loans of  Securities of the Fund,
     but only  against  receipt  of such  collateral  as the  Trust  shall  have
     specified to the Custodian in Proper Instructions;

     (j) For delivery as security in connection with any borrowings by the Fund

                                      -13-
<PAGE>

     requiring a pledge of assets by the Trust,  but only against receipt by the
     Custodian of the amounts borrowed;

     (k) Pursuant to any authorized plan of liquidation, reorganization, merger,
     consolidation or recapitalization of the Trust;

     (l) For delivery in accordance  with the provisions of any agreement  among
     the Trust, the Custodian and a broker-dealer  registered under the 1934 Act
     and a member  of the NASD,  relating  to  compliance  with the rules of The
     Options  Clearing  Corporation  and of any registered  national  securities
     exchange (or of any similar organization or organizations) regarding escrow
     or other arrangements in connection with transactions by the Fund;

     (m) For delivery in accordance  with the provisions of any agreement  among
     the Trust,  the Custodian,  and a futures  commission  merchant  registered
     under the Commodity  Exchange Act, relating to compliance with the rules of
     the Commodity Futures Trading Commission and/or any contract market (or any
     similar  organization  or  organizations)  regarding  account  deposits  in
     connection with transactions by the Fund; or

     (n) For any other  proper  corporate  purpose,  but only upon  receipt,  in
     addition to Proper Instructions,  of a copy of a resolution of the Board of
     Trustees,  certified  by  an  Officer,  specifying  the  Securities  to  be
     delivered, setting forth the purpose for which such delivery is to be made,
     declaring  such purpose to be a proper  corporate  purpose,  and naming the
     person or persons to whom delivery of such Securities shall be made.

     3.8 ACTIONS NOT REQUIRING PROPER INSTRUCTIONS.  Unless otherwise instructed
by the Trust,  the Custodian  shall with respect to all Securities  held for the
Fund:

     (a) Subject to Section 7.4 below, collect on a timely basis all income and

                                      -14-
<PAGE>

     other  payments to which the Fund is entitled  either by law or pursuant to
     custom in the securities business;

     (b)  Present for payment  and,  subject to Section 7.4 below,  collect on a
     timely basis the amount payable upon all Securities  which may mature or be
     called, redeemed, or retired, or otherwise become payable;

     (c) Endorse for  collection,  in the name of the Fund,  checks,  drafts and
     other negotiable instruments;

     (d)  Surrender  interim  receipts  or  Securities  in  temporary  form  for
     Securities in definitive form;

     (e) Execute,  as custodian,  any necessary  declarations or certificates of
     ownership  under the federal  income tax laws or the laws or regulations of
     any other taxing  authority  now or  hereafter  in effect,  and prepare and
     submit reports to the Internal  Revenue Service ("IRS") and to the Trust at
     such time, in such manner and containing such  information as is prescribed
     by the IRS;

     (f) Hold for the Fund,  either directly or, with respect to Securities held
     therein,  through a Book-Entry System or Securities Depository,  all rights
     and similar securities issued with respect to Securities of the Fund; and

     (g) In general,  and except as otherwise  directed in Proper  Instructions,
     attend  to all  non-discretionary  details  in  connection  with the  sale,
     exchange,   substitution,   purchase,  transfer  and  other  dealings  with
     Securities and assets of the Fund.

     3.9  REGISTRATION  AND TRANSFER OF SECURITIES.  All Securities held for the
Fund  that are  issued or  issuable  only in  bearer  form  shall be held by the
Custodian in that form,  provided  that any such  Securities  shall be held in a
Book-Entry System if eligible  therefor.  All other Securities held for the Fund
may be registered in the name of the Fund, the Custodian,  or any  Sub-Custodian
appointed pursuant to Section 3.3 above, or in the name of any nominee of any of

                                      -15-
<PAGE>

them,  or in the  name of a  Book-Entry  System,  Securities  Depository  or any
nominee of either thereof. The Trust shall furnish to the Custodian  appropriate
instruments  to enable  the  Custodian  to hold or  deliver  in proper  form for
transfer, or to register in the name of any of the nominees hereinabove referred
to or  in  the  name  of a  Book-Entry  System  or  Securities  Depository,  any
Securities registered in the name of the Fund.

     3.10  RECORDS.  (a) The  Custodian  shall  maintain  complete  and accurate
records with respect to  Securities,  cash or other  property held for the Fund,
including (i) journals or other records of original entry containing an itemized
daily record in detail of all  receipts and  deliveries  of  Securities  and all
receipts and  disbursements of cash; (ii) ledgers (or other records)  reflecting
(A) Securities in transfer,  (B) Securities in physical  possession,  (C) monies
and Securities borrowed and monies and Securities loaned (together with a record
of the collateral therefor and substitutions of such collateral),  (D) dividends
and interest received, and (E) dividends receivable and interest receivable; and
(iii) canceled checks and bank records related thereto. The Custodian shall keep
such other books and records of the Fund as the Trust shall reasonably  request,
or as may be required by the 1940 Act, including, but not limited to, Section 31
of the 1940 Act and Rule 31a-2 promulgated thereunder.

     (b) All such books and records  maintained  by the  Custodian  shall (i) be
maintained in a form  acceptable  to the Trust and in compliance  with rules and
regulations of the Securities and Exchange  Commission,  (ii) be the property of
the Trust and at all times during the regular business hours of the Custodian be
made  available  upon  request  for  inspection  by  duly  authorized  officers,
employees or agents of the Trust and employees or agents of the  Securities  and
Exchange Commission,  and (iii) if required to be maintained by Rule 31a-1 under
the 1940 Act, be preserved  for the periods  prescribed  in Rule 31a-2 under the
1940 Act.

     3.11 FUND REPORTS BY CUSTODIAN.  The Custodian shall furnish the Trust with
a daily  activity  statement and a summary of all transfers to or from each Fund
Custody Account on the

                                      -16-
<PAGE>

day  following  such  transfers.  At least  monthly  and from time to time,  the
Custodian  shall furnish the Trust with a detailed  statement of the  Securities
and moneys held by the Custodian and the  Sub-Custodians for the Fund under this
Agreement.

     3.12 OTHER REPORTS BY CUSTODIAN. The Custodian shall provide the Trust with
such  reports,  as the Trust may  reasonably  request from time to time,  on the
internal accounting controls and procedures for safeguarding  Securities,  which
are employed by the Custodian or any Sub-Custodian appointed pursuant to Section
3.3 above.

     3.13 PROXIES AND OTHER  MATERIALS.  The  Custodian  shall cause all proxies
relating to Securities  which are not  registered in the name of the Fund, to be
promptly  executed  by  the  registered  holder  of  such  Securities,   without
indication  of the  manner in which  such  proxies  are to be  voted,  and shall
promptly deliver to the Trust such proxies,  all proxy soliciting  materials and
all notices relating to such Securities.

     3.14 INFORMATION ON CORPORATE ACTIONS. The Custodian shall promptly deliver
to the Trust  all  information  received  by the  Custodian  and  pertaining  to
Securities  being held by the Fund with  respect to optional  tender or exchange
offers,  calls for redemption or purchase,  or expiration of rights as described
in the Standards of Service Guide attached as Exhibit B. If the Trust desires to
take action with respect to any tender  offer,  exchange  offer or other similar
transaction,  the Trust shall notify the  Custodian at least five  Business Days
prior to the date on which the Custodian is to take such action.  The Trust will
provide or cause to be provided to the  Custodian all relevant  information  for
any Security which has unique put/option  provisions at least five Business Days
prior to the beginning date of the tender period.

                                   ARTICLE IV
                                   ----------
                  PURCHASE AND SALE OF INVESTMENTS OF THE FUND
                  --------------------------------------------

     4.1 PURCHASE OF  SECURITIES.  Promptly upon each purchase of Securities for
the Fund,

                                      -17-
<PAGE>

Written  Instructions  shall be delivered to the  Custodian,  specifying (a) the
name of the  issuer  or  writer  of such  Securities,  and the  title  or  other
description  thereof,  (b) the number of shares,  principal  amount (and accrued
interest,  if any) or  other  units  purchased,  (c) the  date of  purchase  and
settlement,  (d) the purchase  price per unit, (e) the total amount payable upon
such  purchase,  and (f) the name of the person to whom such  amount is payable.
The Custodian  shall upon receipt of such  Securities  purchased by the Fund pay
out of the moneys held for the account of the Fund the total amount specified in
such Written  Instructions to the person named therein.  The Custodian shall not
be under any  obligation  to pay out moneys to cover the cost of a  purchase  of
Securities  for the Fund, if in the Fund Custody  Account there is  insufficient
cash available to the Fund for which such purchase was made.

     4.2 LIABILITY FOR PAYMENT IN ADVANCE OF RECEIPT OF SECURITIES PURCHASED. In
any and every case where payment for the purchase of Securities  for the Fund is
made by the Custodian in advance of receipt of the  Securities  purchased but in
the  absence  of  specified  Written  Instructions  to so  pay in  advance,  the
Custodian  shall be liable to the Fund for such Securities to the same extent as
if the Securities had been received by the Custodian.

     4.3 SALE OF SECURITIES.  Promptly upon each sale of Securities by the Fund,
Written  Instructions  shall be delivered to the  Custodian,  specifying (a) the
name of the  issuer  or  writer  of such  Securities,  and the  title  or  other
description  thereof,  (b) the number of shares,  principal  amount (and accrued
interest, if any), or other units sold, (c) the date of sale and settlement, (d)
the sale price per unit,  (e) the total amount  payable upon such sale,  and (f)
the person to whom such  Securities  are to be  delivered.  Upon  receipt of the
total amount payable to the Fund as specified in such Written Instructions,  the
Custodian shall deliver such Securities to the person  specified in such Written
Instructions. Subject to the foregoing, the Custodian may accept payment in such
form as shall be satisfactory to it, and may deliver  Securities and arrange for
payment in accordance with the customs prevailing among dealers in Securities.

                                      -18-
<PAGE>

     4.4 DELIVERY OF SECURITIES SOLD.  Notwithstanding  Section 4.3 above or any
other  provision of this  Agreement,  the Custodian,  when instructed to deliver
Securities against payment,  shall be entitled,  if in accordance with generally
accepted market practice,  to deliver such Securities prior to actual receipt of
final  payment  therefor.  In any such  case,  the Fund shall bear the risk that
final payment for such Securities may not be made or that such Securities may be
returned or otherwise  held or disposed of by or through the person to whom they
were  delivered,  and  the  Custodian  shall  have no  liability  for any of the
foregoing.

     4.5 PAYMENT FOR SECURITIES  SOLD, ETC. In its sole discretion and from time
to time,  the  Custodian  may credit the Fund Custody  Account,  prior to actual
receipt of final payment thereof,  with (i) proceeds from the sale of Securities
which it has been instructed to deliver against payment,  (ii) proceeds from the
redemption  of  Securities  or other  assets of the Fund,  and (iii) income from
cash,  Securities  or  other  assets  of the  Fund.  Any  such  credit  shall be
conditional  upon  actual  receipt  by  Custodian  of final  payment  and may be
reversed if final payment is not actually  received in full.  The Custodian may,
in its sole  discretion  and from time to time,  permit the Fund to use funds so
credited to the Fund Custody  Account in anticipation of actual receipt of final
payment.  Any such funds shall be repayable  immediately upon demand made by the
Custodian  at any time prior to the  actual  receipt  of all final  payments  in
anticipation of which funds were credited to the Fund Custody Account.

     4.6 ADVANCES BY CUSTODIAN FOR  SETTLEMENT.  The Custodian  may, in its sole
discretion  and from time to time,  advance funds to the Trust to facilitate the
settlement  of the Fund's  transactions  in the Fund Custody  Account.  Any such
advance shall be repayable immediately upon demand made by Custodian.

                                      -19-
<PAGE>

                                    ARTICLE V
                                    ---------
                            REDEMPTION OF FUND SHARES
                            -------------------------

     5.1 TRANSFER OF FUNDS.  From such funds as may be available for the purpose
in the Fund Custody Account, and upon receipt of Proper Instructions  specifying
that the funds are required to redeem Shares of the Fund,  the  Custodian  shall
wire each amount  specified in such Proper  Instructions to or through such bank
as the  Trust  may  designate  with  respect  to  such  amount  in  such  Proper
Instructions.

     5.2 NO DUTY REGARDING  PAYING BANKS.  The Custodian  shall not be under any
obligation to effect payment or  distribution  by any bank  designated in Proper
Instructions  given  pursuant  to Section  5.1 above of any  amount  paid by the
Custodian to such bank in accordance with such Proper Instructions.

                                   ARTICLE VI
                                   ----------
                               SEGREGATED ACCOUNTS
                               -------------------

     Upon receipt of Proper  Instructions,  the  Custodian  shall  establish and
maintain a segregated  account or accounts  for and on behalf of the Fund,  into
which account or accounts may be transferred cash and/or  Securities,  including
Securities maintained in a Depository Account,

     (a)  in accordance  with the  provisions of any agreement  among the Trust,
          the the Custodian and a  broker-dealer  registered  under the 1934 Act
          and  a  member  of  the  NASD  (or  any  futures  commission  merchant
          registered under the Commodity  Exchange Act),  relating to compliance
          with the rules of The  Options  Clearing  Trust and of any  registered
          national   securities  exchange  (or  the  Commodity  Futures  Trading
          Commission  or any  registered  contract  market),  or of any  similar
          organization

                                      -20-
<PAGE>

          or organizations, regarding escrow or other arrangements in connection
          with transactions by the Fund,

     (b)  for purposes of  segregating  cash or Securities  in  connection  with
          securities  options  purchased or written by the Fund or in connection
          with financial  futures  contracts (or options  thereon)  purchased or
          sold by the Fund,

     (c)  which constitute collateral for loans of Securities made by the Fund,

     (d)  for purposes of  compliance  by the Fund with  requirements  under the
          1940 Act for the  maintenance  of  segregated  accounts by  registered
          investment companies in connection with reverse repurchase  agreements
          and when-issued,  delayed  delivery and firm commitment  transactions,
          and

     (e)  for other  proper  corporate  purposes,  but only upon  receipt of, in
          addition to Proper  Instructions,  a certified copy of a resolution of
          the Board of  Trustees,  certified  by an Officer,  setting  forth the
          purpose or purposes of such  segregated  account  and  declaring  such
          purposes to be proper  corporate  purposes.  Each  segregated  account
          established  under this Article VI shall be established and maintained
          for the Fund only.

                                   ARTICLE VII
                                   -----------
                            CONCERNING THE CUSTODIAN
                            ------------------------

     7.1  STANDARD  OF CARE.  The  Custodian  shall be held to the  exercise  of
reasonable care in carrying out its obligations under this Agreement,  and shall
be  without  liability  to the  Trust or the Fund for any  loss,  damage,  cost,
expense (including attorneys' fees and disbursements), liability or claim unless
such loss, damage, cost, expense, liability or claim arises from negligence, bad
faith or willful misconduct on its part or on the part of any Sub-Custodian

                                      -21-
<PAGE>

appointed pursuant to Section 3.3 above. The Custodian shall be entitled to rely
on and may act upon  advice of  counsel  on all  matters,  and shall be  without
liability for any action  reasonably  taken or omitted  pursuant to such advice.
The Custodian  shall promptly notify the Trust of any action taken or omitted by
the Custodian  pursuant to advice of counsel.  The Custodian  shall not be under
any  obligation  at any time to  ascertain  whether  the Trust or the Fund is in
compliance with the 1940 Act, the regulations thereunder,  the provisions of the
Trust's charter documents or by-laws, or its investment  objectives and policies
as then in effect.

     7.2 ACTUAL COLLECTION  REQUIRED.  The Custodian shall not be liable for, or
considered  to be the  custodian  of, any cash  belonging to a Fund or any money
represented  by a check,  draft or other  instrument  for the  payment of money,
until the Custodian or its agents actually  receive such cash or collect on such
instrument.

     7.3 NO RESPONSIBILITY  FOR TITLE, ETC. So long as and to the extent that it
is in the exercise of reasonable  care,  the Custodian  shall not be responsible
for the title,  validity  or  genuineness  of any  property or evidence of title
thereto received or delivered by it pursuant to this Agreement.

     7.4  LIMITATION  ON DUTY TO  COLLECT.  Custodian  shall not be  required to
enforce  collection,  by legal means or otherwise,  of any money or property due
and payable with respect to Securities  held for the Fund if such Securities are
in default or payment is not made after due demand or presentation.

     7.5 RELIANCE  UPON  DOCUMENTS  AND  INSTRUCTIONS.  The  Custodian  shall be
entitled to rely upon any  certificate,  notice or other  instrument  in writing
received by it and reasonably believed by it to be genuine.  The Custodian shall
be entitled to rely upon any Oral Instructions

                                      -22-
<PAGE>

and any Written Instructions actually received by it pursuant to this Agreement.

     7.6 EXPRESS DUTIES ONLY. The Custodian  shall have no duties or obligations
whatsoever  except such duties and obligations as are  specifically set forth in
this Agreement, and no covenant or obligation shall be implied in this Agreement
against the Custodian.

     7.7  CO-OPERATION.  The Custodian shall cooperate with and supply necessary
information  to the entity or entities  appointed by the Trust to keep the books
of account of the Fund and/or  compute the value of the assets of the Fund.  The
Custodian shall take all such  reasonable  actions as the Trust may from time to
time  request  to enable  the  Trust to  obtain,  from  year to year,  favorable
opinions  from  the  Trust's   independent   accountants  with  respect  to  the
Custodian's  activities  hereunder in connection with (a) the preparation of the
Trust's  reports on Form N-1A and Form N-SAR and any other  reports  required by
the Securities and Exchange Commission,  and (b) the fulfillment by the Trust of
any other requirements of the Securities and Exchange Commission.

                                  ARTICLE VIII
                                  ------------
                                 INDEMNIFICATION
                                 ---------------

     8.1  INDEMNIFICATION  BY TRUST. The Trust shall indemnify and hold harmless
the Custodian and any Sub-Custodian appointed pursuant to Section 3.3 above, and
any  nominee of the  Custodian  or of such  Sub-Custodian,  from and against any
loss,  damage,  cost,  expense  (including  attorneys' fees and  disbursements),
liability (including, without limitation, liability arising under the Securities
Act of 1933,  the 1934 Act,  the 1940 Act,  and any state or foreign  securities
and/or  banking laws) or claim arising  directly or indirectly (a) from the fact
that Securities are registered in the name of any such nominee,  or (b) from any
action or inaction by the Custodian or such  Sub-Custodian (i) at the request or
direction  of or in  reliance  on the advice of the Trust,  or (ii) upon  Proper
Instructions, or (c) generally, from the performance of its

                                      -23-
<PAGE>

obligations   under  this  Agreement  or  any   sub-custody   agreement  with  a
Sub-Custodian appointed pursuant to Section 3.3 above, provided that neither the
Custodian nor any such Sub-Custodian shall be indemnified and held harmless from
and against any such loss,  damage,  cost,  expense,  liability or claim arising
from the Custodian's or such  Sub-Custodian's  negligence,  bad faith or willful
misconduct.

     8.2  INDEMNIFICATION  BY CUSTODIAN.  The Custodian shall indemnify and hold
harmless the Trust from and against any loss,  damage,  cost, expense (including
attorneys' fees and  disbursements),  liability  (including without  limitation,
liability  arising under the Securities Act of 1933, the 1934 Act, the 1940 Act,
and any state or foreign  securities  and/or banking laws) or claim arising from
the  negligence,  bad  faith  or  willful  misconduct  of the  Custodian  or any
Sub-Custodian  appointed  pursuant to Section  3.3 above,  or any nominee of the
Custodian or of such Sub-Custodian.

     8.3 INDEMNITY TO BE PROVIDED.  If the Trust  requests the Custodian to take
any  action  with  respect  to  Securities,  which  may,  in the  opinion of the
Custodian,  result in the  Custodian  or its  nominee  becoming  liable  for the
payment of money or incurring  liability of some other form, the Custodian shall
not be  required  to take  such  action  until  the Trust  shall  have  provided
indemnity  therefor to the Custodian in an amount and form  satisfactory  to the
Custodian.

     8.4 SECURITY.  If the Custodian advances cash or Securities to the Fund for
any purpose,  either at the Trust's request or as otherwise contemplated in this
Agreement,  or in the  event  that  the  Custodian  or its  nominee  incurs,  in
connection with its performance under this Agreement,  any loss,  damage,  cost,
expense  (including  attorneys'  fees  and  disbursements),  liability  or claim
(except  such as may arise from its or its  nominee's  negligence,  bad faith or
willful misconduct),  then, in any such event, any property at any time held for
the  account of the Fund shall be  security  therefor,  and should the Fund fail
promptly to repay or indemnify the Custodian, the Custodian shall be entitled to
utilize available cash of the Fund and to dispose of

                                      -24-
<PAGE>

other  assets of the Fund to the extent  necessary  to obtain  reimbursement  or
indemnification.

                                   ARTICLE IX
                                   ----------
                                  FORCE MAJEURE
                                  -------------

     Neither  the  Custodian  nor the Trust  shall be liable for any  failure or
delay in performance of its obligations  under this Agreement  arising out of or
caused, directly or indirectly,  by circumstances beyond its reasonable control,
including,  without limitation,  acts of God; earthquakes;  fires; floods; wars;
civil or military  disturbances;  sabotage;  strikes;  epidemics;  riots;  power
failures;  computer  failure and any such  circumstances  beyond its  reasonable
control  as  may  cause   interruption,   loss  or   malfunction   of   utility,
transportation,  computer  (hardware or  software)  or  telephone  communication
service;  accidents;  labor  disputes;  acts of  civil  or  military  authority;
governmental  actions;  or inability  to obtain  labor,  material,  equipment or
transportation;  provided, however, that the Custodian in the event of a failure
or delay  (i)  shall  not  discriminate  against  the Fund in favor of any other
customer of the Custodian in making  computer  time and  personnel  available to
input or process the transactions  contemplated by this Agreement and (ii) shall
use its best efforts to ameliorate the effects of any such failure or delay.

                                    ARTICLE X
                                    ---------
                          EFFECTIVE PERIOD; TERMINATION
                          -----------------------------

     10.1  EFFECTIVE  PERIOD.  This Agreement  shall become  effective as of its
execution  and shall  continue  in full force and  effect  until  terminated  as
hereinafter provided.

     10.2  TERMINATION.  Either party  hereto may  terminate  this  Agreement by
giving  to the  other  party a notice  in  writing  specifying  the date of such
termination, which shall be not less

                                      -25-
<PAGE>

than sixty (60) days after the date of the giving of such notice. If a successor
custodian  shall have been  appointed  by the Board of Trustees,  the  Custodian
shall,  upon receipt of a notice of acceptance by the  successor  custodian,  on
such  specified  date of  termination  (a)  deliver  directly  to the  successor
custodian all Securities  (other than Securities held in a Book-Entry  System or
Securities Depository) and cash then owned by the Fund and held by the Custodian
as custodian,  and (b) transfer any  Securities  held in a Book-Entry  System or
Securities  Depository  to an account  of or for the  benefit of the Fund at the
successor  custodian,  provided  that the Trust shall have paid to the Custodian
all fees, expenses and other amounts to the payment or reimbursement of which it
shall then be entitled.  Upon such delivery and transfer, the Custodian shall be
relieved  of all  obligations  under this  Agreement.  The Trust may at any time
immediately  terminate  this  Agreement  in the  event of the  appointment  of a
conservator or receiver for the Custodian by regulatory  authorities or upon the
happening of a like event at the direction of an appropriate  regulatory  agency
or court of competent jurisdiction.

     10.3 FAILURE TO APPOINT SUCCESSOR  CUSTODIAN.  If a successor  custodian is
not  designated  by the Trust on or  before  the date of  termination  specified
pursuant  to Section  10.1  above,  then the  Custodian  shall have the right to
deliver to a bank or corporation  company of its own  selection,  which (a) is a
"bank" as defined in the 1940 Act and (b) has  aggregate  capital,  surplus  and
undivided  profits as shown on its then most recent published report of not less
than $25 million,  all  Securities,  cash and other  property  held by Custodian
under this  Agreement  and to  transfer to an account of or for the Fund at such
bank or trust company all Securities of the Fund held in a Book-Entry  System or
Securities  Depository.  Upon such  delivery  and  transfer,  such bank or trust
company shall be the successor  custodian under this Agreement and the Custodian
shall be relieved of all obligations under this Agreement.

                                      -26-
<PAGE>

                                   ARTICLE XI
                                   ----------
                            COMPENSATION OF CUSTODIAN
                            -------------------------

     The Custodian shall be entitled to compensation as agreed upon from time to
time by the Trust and the Custodian. The fees and other charges in effect on the
date  hereof  and  applicable  to the Fund are set forth in  Exhibit C  attached
hereto.

                                   ARTICLE XII
                                   -----------
                             LIMITATION OF LIABILITY
                             -----------------------

     It is expressly  agreed that the  obligations of the Trust  hereunder shall
not be  binding  upon any of the  Trustees,  shareholders,  nominees,  officers,
agents or  employees  of the  Trust  personally,  but shall  bind only the trust
property of the Trust as provided in the Trust's  Agreement and  Declaration  of
Trust,  as  from  time to time  amended.  The  execution  and  delivery  of this
Agreement  have been  authorized  by the Trustees,  and this  Agreement has been
signed and delivered by an authorized officer of the Trust,  acting as such, and
neither such  authorization  by the Trustees nor such  execution and delivery by
such officer shall be deemed to have been made by any of them individually or to
impose any  liability on any of them  personally,  but shall bind only the trust
property  of  the  Trust  as  provided  in  the  above-mentioned  Agreement  and
Declaration of Trust.

                                  ARTICLE XIII
                                  ------------
                                     NOTICES
                                     -------

     Unless otherwise specified herein, all demands, notices,  instructions, and
other communications to be given hereunder shall be in writing and shall be sent
or  delivered  to  the  recipient  at the  address  set  forth  after  its  name
hereinbelow:

                                      -27-
<PAGE>

            TO THE TRUST:

            Dunhill Investment Trust
            700 W. Pete Rose Way, Suite 127
            Cincinnati, Ohio 45203
            Attention:  Jasen M. Snelling
            Telephone:  (513) 721-4800
            Facsimile:  (513) 345-4841


            TO CUSTODIAN:

            Firstar Bank, N.A.
            425 Walnut Street, M.L. CN-WN-06TC
            Cincinnati, Ohio   45202
            Attention:  Mutual Fund Custody Services
            Telephone:  (513)  632_____
            Facsimile:  (513)  632-3299

or at such other  address as either  party  shall have  provided to the other by
notice  given in  accordance  with this  Article  XIII.  Writing  shall  include
transmissions  by  or  through  teletype,  facsimile,  central  processing  unit
connection, on-line terminal and magnetic tape.

                                   ARTICLE XIV
                                   -----------
                                  MISCELLANEOUS
                                  -------------

     14.1 GOVERNING  LAW. This  Agreement  shall be governed by and construed in
accordance with the laws of the State of Ohio.

     14.2  REFERENCES  TO  CUSTODIAN.  The Trust shall not circulate any printed
matter which  contains any  reference  to  Custodian  without the prior  written
approval of Custodian,  excepting  printed matter contained in the prospectus or
statement of additional  information  for the Fund and such other printed matter
as merely identifies Custodian as custodian for the Fund. The Trust shall submit
printed matter requiring approval to Custodian in draft form, allowing

                                      -28-
<PAGE>

sufficient  time for review by Custodian  and its counsel  prior to any deadline
for printing.

     14.3 NO WAIVER. No failure by either party hereto to exercise, and no delay
by such  party in  exercising,  any right  hereunder  shall  operate as a waiver
thereof.  The exercise by either party hereto of any right  hereunder  shall not
preclude the exercise of any other right,  and the remedies  provided herein are
cumulative and not exclusive of any remedies provided at law or in equity.

     14.4  AMENDMENTS.  This Agreement cannot be changed orally and no amendment
to this  Agreement  shall be  effective  unless  evidenced by an  instrument  in
writing executed by the parties hereto.

     14.5  COUNTERPARTS.   This  Agreement  may  be  executed  in  one  or  more
counterparts, and by the parties hereto on separate counterparts,  each of which
shall be deemed an original but all of which together  shall  constitute but one
and the same instrument.

     14.6  SEVERABILITY.  If any provision of this  Agreement  shall be invalid,
illegal or  unenforceable in any respect under any applicable law, the validity,
legality and enforceability of the remaining provisions shall not be affected or
impaired thereby.

     14.7 SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their  respective  successors and
assigns;  provided,  however,  that this  Agreement  shall not be  assignable by
either party hereto without the written consent of the other party hereto.

     14.8  HEADINGS.  The  headings  of  sections  in  this  Agreement  are  for
convenience of reference  only and shall not affect the meaning or  construction
of any provision of this Agreement.

                                      -29-
<PAGE>

     IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to
be executed and  delivered in its name and on its behalf by its  representatives
thereunto duly authorized, all as of the day and year first above written.

ATTEST:                             DUNHILL INVESTMENT TRUST


/s/ John F. Splain                  By: /s/ Jasen M. Snelling
------------------------------         ----------------------------
                                       Its: President


ATTEST:                             FIRSTAR BANK, N.A.


/s/ T.M. Tanner                     By: /s/ Lynette C. Gibson
------------------------------         ----------------------------
Senior Trust Officer                   Its: Vice President

                                      -30-
<PAGE>

                                    EXHIBIT A
                                    ---------
                               AUTHORIZED PERSONS
                               ------------------

     Set  forth  below  are the names and  specimen  signatures  of the  persons
authorized by the Trust to administer the Fund Custody Accounts.

AUTHORIZED PERSONS                                SPECIMEN SIGNATURES

Chairman:               Christopher J. Smith      /s/ Christopher J. Smith
                                                  --------------------------
President:              Jasen M. Snelling         /s/ Jasen M. Snelling
                                                  --------------------------
Secretary/Treasurer:    Jerry A. Smith            /s/ Jerry A. Smith
                                                  --------------------------
Transfer Agent/Fund Accountant

Employees:              John F. Splain            /s/ John F. Splain
                                                  --------------------------
                        Mark J. Seger             /s/ Mark J. Seger
                                                  --------------------------
                        Robert G. Dorsey          /s/ Robert G. Dorsey
                                                  --------------------------
                        David A. Bogaert*         /s/ David A. Bogaert
                                                  --------------------------
                        Linda A. Lawson*          /s/ Linda A. Lawson
                                                  --------------------------
                        Michael Durham*           /s/ Michael Durham
                                                  --------------------------
                        Carol Highsmith*          /s/ Carol Highsmith
                                                  --------------------------
                        Crystal Cherry*           /s/ Crystal Cherry
                                                  --------------------------
                        Stacey Stone*             /s/ Stacey Stone
                                                  --------------------------
                        Matthew Miller*           /s/ Matthew Miller
                                                  --------------------------
                        Diane Shoefler*           /s/ Diane Shoefler
                                                  --------------------------
                        Melissa Black*            /s/ Melissa Black
                                                  --------------------------
                        Barbara Howe*             /s/ Barbara Howe
                                                  --------------------------
                        Sara Williams*            /s/ Sara Williams
                                                  --------------------------

*Authority  limited  to  writing  checks  to  shareholders  for  redemptions  or
dividends;  sending wires to shareholders for redemptions; and cash movement for
shareholder activity.

                                      -31-
<PAGE>

EXHIBIT B
---------

                     FIRSTAR INSTITUTIONAL CUSTODY SERVICES
                           STANDARDS OF SERVICE GUIDE
                                   July, 1999

     Firstar Bank,  N.A. is committed to providing  superior  quality service to
all  customers  and their agents at all times.  We have compiled this guide as a
tool for our clients to determine our  standards for the  processing of security
settlements,  payment  collection,  and capital change  transactions.  Deadlines
recited in this guide represent the times required for Firstar Bank to guarantee
processing.  Failure to meet these  deadlines  will result in  settlement at our
client's risk. In all cases, Firstar Bank will make every effort to complete all
processing on a timely basis.

     Firstar Bank is a direct  participant  of the Depository  Trust Company,  a
direct member of the Federal Reserve Bank of Cleveland, and utilizes the Bankers
Trust Company as its agent for ineligible and foreign securities.

     For corporate  reorganizations,  Firstar Bank utilizes  SEI's Reorg Source,
Financial Information,  Inc., XCITEK, DTC Important Notices, and the WALL STREET
JOURNAL.

     For bond calls and mandatory puts, Firstar Bank utilizes SEI's Bond Source,
Kenny  Information  Systems,  Standard & Poor's  Corporation,  and DTC Important
Notices. Firstar Bank will not notify clients of optional put opportunities.

     Any  securities  delivered  free  to  Firstar  Bank or its  agents  must be
received three (3) business days prior to any payment or settlement in order for
the Firstar Bank standards of service to apply.

     Should you have any questions  regarding the information  contained in this
guide, please feel free to contact your account representative.

     The information  contained in this Standards of Service Guide is subject to
     change.  Should any changes be made  Firstar  Bank will provide you with an
     updated copy of its Standards of Service Guide.

                                      -32-
<PAGE>

                   FIRSTAR BANK SECURITY SETTLEMENT STANDARDS

<TABLE>
<CAPTION>
TRANSACTION TYPE                 INSTRUCTIONS DEADLINES*              DELIVERY INSTRUCTIONS
<S>                              <C>                                  <C>
DTC                              1:30 P.M. on Settlement Date         DTC Participant #2803
                                                                      Agent Bank ID 27895
                                                                      Institutional #________________
                                                                      For Account #____________

Federal Reserve Book Entry       12:30 P.M. on Settlement Date        Federal Reserve Bank of Cinti/Trust
                                                                      for Firstar Bank, N.A.  ABA# 042000013
                                                                      For Account #_____________

Fed Wireable FNMA & FHLMC        12:30 P.M. on Settlement Date        Bk of NYC/Cust
                                                                      ABA 021000018
                                                                      A/C Firstar Bank # 117612
                                                                      For Account #____________

Federal Reserve Book Entry       1:00 P.M. on Settlement Date         Federal Reserve Bank of Cinti/Spec
(Repurchase Agreement                                                 for Firstar Bank, N.A.   ABA# 042000013
Collateral Only)                                                      For Account #_____________

PTC Securities                   12:00 P.M. on Settlement Date        PTC For Account BYORK
(GNMA Book Entry)                                                     Firstar Bank / 117612

Physical Securities              9:30 A.M. EST on Settlement Date     Bank of New York
                                 (for Deliveries, by 4:00 P.M. on     One Wall Street- 3rd Floor - Window A
                                 Settlement Date minus 1)             New York, NY  10286
                                                                      For account of Firstar Bank / Cust #117612
                                                                      Attn: Donald Hoover

CEDEL/EURO-CLEAR                 11:00 A..M. on  Settlement Date      Cedel a/c 55021
                                 minus 2                              FFC: a/c 387000
                                                                      Firstar Bank / Global Omnibus

Cash Wire Transfer               3:00 P.M.                            Firstar Bank,N.A. Cinti/Trust
                                                                      ABA#
                                                                      Credit Account #
                                                                      Further Credit to ___________
                                                                      Account # _______________
</TABLE>

* All times listed are Eastern Standard Time.

                                      -33-
<PAGE>

                         FIRSTAR BANK PAYMENT STANDARDS

SECURITY TYPE                          INCOME               PRINCIPAL

Equities                               Payable Date

Municipal Bonds*                       Payable Date         Payable Date

Corporate Bonds*                       Payable Date         Payable Date

Federal Reserve Bank Book Entry*       Payable Date         Payable Date

PTC GNMA's (P&I)                       Payable Date + 1     Payable Date + 1

CMOs *
     DTC                               Payable Date + 1     Payable Date + 1
     Bankers Trust                     Payable Date + 1     Payable Date + 1

SBA Loan Certificates                  When Received        When Received

Unit Investment Trust                  Payable Date         Payable Date
Certificates*

Certificates of Deposit*               Payable Date + 1     Payable Date + 1

Limited Partnerships                   When Received        When Received

Foreign Securities                     When Received        When Received

*Variable Rate Securities
     Federal Reserve Bank Book Entry   Payable Date         Payable Date
     DTC                               Payable Date + 1     Payable Date + 1
     Bankers Trust                     Payable Date + 1     Payable Date + 1


     NOTE:  If a payable date falls on a weekend or bank  holiday,  payment will
            be made on the immediately following business day.

                                      -34-
<PAGE>

                 FIRSTAR BANK CORPORATE REORGANIZATION STANDARDS

<TABLE>
<CAPTION>
TYPE OF ACTION            NOTIFICATION TO CLIENT            DEADLINE FOR CLIENT              TRANSACTION
                                                            INSTRUCTIONS                     POSTING
                                                            TO FIRSTAR BANK

<S>                       <C>                               <C>                              <C>
Rights, Warrants,         Later of 10 business days         5 business days prior to         Upon receipt
and Optional Mergers      prior to expiration or            expiration
                          receipt of notice

Mandatory Puts with       Later of 10 business days         5 business days prior to         Upon receipt
Option to Retain          prior to expiration or            expiration
                          receipt of notice

Class Actions             10 business days prior to         5 business days prior to         Upon receipt
                          expiration date                   expiration

Voluntary Tenders,        Later of 10 business days         5 business days prior to         Upon receipt
Exchanges,                prior to expiration or            expiration
and Conversions           receipt of notice

Mandatory Puts,           At posting of funds or            None                             Upon receipt
Defaults, Liquidations,   securities received
Bankruptcies, Stock
Splits, Mandatory
Exchanges

Full and Partial Calls    Later of 10 business days         None                             Upon receipt
                          prior to expiration or
                          receipt of notice
</TABLE>

     NOTE:  Fractional  shares/par  amounts resulting from any of the above will
            be sold.

                                      -35-
<PAGE>

                                    EXHIBIT C
                                    ---------

                               FIRSTAR BANK, N.A.
                          DOMESTIC CUSTODY FEE SCHEDULE

Firstar Bank, N.A., as Custodian, will receive monthly compensation for services
according to the terms of the following Schedule:

I.   PORTFOLIO TRANSACTION FEES:
     ---------------------------

     (a)  For each repurchase agreement transaction                        $7.00
     (b)  For each portfolio transaction processed through
            DTC or Federal Reserve                                         $9.00
     (c)  For each portfolio transaction processed through
          our New York custodian                                          $25.00
     (d)  For each GNMA/Amortized Security Purchase                       $25.00
     (e)  For each GNMA Prin/Int Paydown, GNMA Sales                       $8.00
     (f)  For each covered call option/future contract written,
          exercised or expired                                            $10.00
     (g)  For each Cedel/Euro clear transaction                           $80.00
     (h)  For each Disbursement (Fund expenses only)                       $5.00

A transaction  is a  purchase/sale  of a security,  free  receipt/free  delivery
(excludes initial conversion), maturity, tender or exchange:

II.  MARKET VALUE FEE
     ----------------

     Based upon an annual rate of:             Million
     .0003 (3 Basis Points) on First           $20
     .0002 (2 Basis Points) on Next            $30
     .00015 (1.5 Basis Points) on              Balance

III. MONTHLY MINIMUM FEE-PER FUND                                        $300.00
     ----------------------------

IV.  OUT-OF-POCKET EXPENSES
     ----------------------

     The only  out-of-pocket  expenses charged to your account will be
     shipping fees or transfer fees.

V.   IRA DOCUMENTS
     -------------

     Per Shareholder/year to hold each IRA Document                        $8.00

VI.  EARNINGS CREDITS
     ----------------

     On a monthly basis any earnings credits generated from uninvested
     custody  balances  will be applied  against  any cash  management
     service fees generated.

                                 -36-
<PAGE>

                     FIRSTAR INSTITUTIONAL CUSTODY SERVICES
                    PROPOSED CASH MANAGEMENT FEE SCHEDULE FOR

SERVICES                            UNIT COST ($)               MONTHLY COST ($)
--------                            -------------               ----------------
D.D.A. Account Maintenance                                            15.00
Deposits                                 .42
Deposited Items                         .109
Checks Paid                             .159
Balance Reporting - P.C. Access                                 50.00 1st Acct
                                                                35.00 each add'l
ACH Transaction                         .105
ACH Monthly Maintenance                                               40.00
ACH Additions, Deletions, Changes       6.00
ACH Stop Payment                        5.00
ACH Debits                               .12
Deposited Items Returned                6.00
International Items Returned           10.00
NSF Returned Checks                    25.00
Stop Payments                          22.00
Data Transmission per account                                        115.00
Drafts Cleared                          .179
Lockbox Maintenance                                                   60.00
Lockbox items Processed                  .34
Miscellaneous Lockbox items              .12
Positive Pay                             .06
Issued Items                            .015
Invoicing for Service Charge           15.00
Wires Incoming
     Domestic                          11.00
     International                     11.00
Wires Outgoing
     Domestic                                     International
          Repetitive                   14.00      Repetitive          35.00
          Non-Repetitive               13.00      Non-Repetitive      40.00
PC - Initiated Wires:
     Domestic                                     International
          Repetitive                   10.00      Repetitive          25.00
          Non-Repetitive               11.00      Non-Repetitive      25.00
          Customer Initiated            9.00

Uncollected Charge -- Firstar Prime Rate as of first of month plus 4%
Other available cash management services are priced separately.

                                      -37-



© 2022 IncJournal is not affiliated with or endorsed by the U.S. Securities and Exchange Commission