Document:

INTERVEST CORPORATION OF NEW YORK
                                ESCROW AGREEMENT

         THIS ESCROW  AGREEMENT  made as of this      day of         ,  2001, by
                                                 ----        --------
and among  Intervest  Corporation of New York, a New York  corporation  with its
principal  offices at 10  Rockefeller  Plaza,  Suite  1015,  New York,  New York
10020-1903 ("Corporation"); Sage, Rutty & Co., Inc., a New York corporation with
its  principal  offices  at 1621  Jefferson  Road,  Rochester,  New  York  14623
("Underwriter"); and Manufacturers and Traders Trust Company, a New York banking
organization with an address at M&T Place, 255 East Avenue,  Rochester, New York
14604 ("Escrow Agent").

                                R E C I T A L S:

         WHEREAS,  the Corporation has filed a Form S-11 Registration  Statement
under the Securities  Act of 1933 with the  Securities  and Exchange  Commission
("Registration  Statement")  covering  a  proposed  offering  of  a  minimum  of
$4,000,000 and maximum of $5,000,000  aggregate  principal  amount of its Series
  /  /01 Subordinated Debentures ("Debentures"); and
-- --
         WHEREAS,  the  Underwriter  intends  to  sell  the  Debentures  as  the
Corporation's agent on a best efforts basis; and

         WHEREAS, certain officers of the Corporation may also sell Debentures;
and
         WHEREAS,  under the terms of the offering,  subscription funds received
on the sale of Debentures  will be deposited in an escrow  account until certain
terms and conditions have been met; and

         WHEREAS, the Corporation desires that the subscription funds be held in
escrow by the Escrow Agent on the terms and conditions set forth herein.

         NOW,  THEREFORE,  in consideration  of the mutual  covenants  contained
herein, the parties agree as follows:

         1.       Establishment and Custody of Escrow Fund.
                  ----------------------------------------

                  (a)  On or  prior  to the  date  of  the  commencement  of the
offering of the  Debentures,  the parties  shall  establish an  interest-bearing
escrow  account with the Escrow Agent.  The  Corporation  will notify the Escrow
Agent in writing of the effective date of the Registration Statement. The escrow
account shall be entitled  "Intervest  Corporation of New York Escrow  Account."
The Corporation  shall,  prior to the establishment of such account,  furnish to
the Escrow Agent a completed IRS Form W-9.

                  (b)  On  the  next  Business  Day  following  receipt  by  the
Corporation or the Underwriter from an investor desiring to purchase  Debentures
("Subscriber(s)") or from any participating selected dealer, of any subscription
documents and payment of the subscription  price (in the minimum of $10,000) for
Debentures  to be purchased,  it will promptly  transmit to the Escrow Agent the
following:

                           (i)      Checks,  bank drafts or money orders payable
to "M&T Bank,  as Escrow Agent for  Intervest  Corporation  of New York" or wire
transfers to the escrow  account (such sums as held by Escrow Agent in collected
funds,  as  increased  or  decreased  by  any   investments,   reinvestments  or
distributions made in respect thereof and any interest thereon as held from time
to time by the Escrow  Agent  pursuant  to the terms of this  Escrow  Agreement,
being hereafter collectively referred to as the "Escrow Fund"). Such funds shall
be delivered to M&T Bank, M&T Place, 255 East Avenue, Rochester, New York 14604,
Attention: Lynn M. Carleton, for deposit in accordance with Section 2; and

                           (ii)     With  each  deposit  to  the  Escrow Fund, a
statement  containing the name,  address and tax  identification  number of each
Subscriber.

                  (c) Checks or other forms of payment  not made  payable to the
Escrow  Agent  shall  be  returned  by the  Escrow  Agent to the  purchaser  who
submitted the check.

<PAGE>
                  (d) For purposes of this Escrow Agreement, a "Business Day" is
a day upon which the Escrow Agent is open for the conduct of business.

                  (e) The Escrow  Agent will  acknowledge  receipt of the Escrow
Fund and will hold the Escrow Funds subject to the terms and  conditions of this
Escrow Agreement.

                  (f) The Escrow  Agent shall  notify the  Corporation  when the
total amount of  subscription  funds in the Escrow Fund,  less the amount of any
such checks returned for  insufficient  funds,  equals at least  $4,000,000 (the
"Minimum Funds").  No investment profits or losses and no interest earned on any
investment  of the  Escrow  Fund  shall  be  considered  for  purposes  of  this
calculation.

                  (g) During the term of this Escrow Agreement,  the Corporation
understands  that it is not  entitled to any funds  received  into escrow and no
amounts  deposited  shall  become the property of the  Corporation  or any other
entity, or be subject to the debts of the Corporation or any other entity.

         2.  Investment of Escrow Fund.  Moneys held in the Escrow Fund shall be
             -------------------------
invested and  reinvested by the Escrow Agent in its trust money market  account.
Moneys  held  in the  Escrow  Fund  will,  in any  event,  be  invested  only in
investments  permissible under Rule 15c2-4 under the Securities  Exchange Act of
1934.

         3.  Duties  of  Escrow  Agent.  Acceptance  by  the Escrow Agent of its
             -------------------------
duties  under  this  Escrow  Agreement  is subject  to the  following  terms and
conditions,  which all parties to this Escrow  Agreement  agree shall govern and
control with respect to the rights,  duties,  liabilities  and immunities of the
Escrow Agent.

                  (a) The duties and  responsibilities of the Escrow Agent shall
be limited to those expressly set forth in this Escrow  Agreement and the Escrow
Agent shall not be subject to, nor obligated to recognize,  any other agreements
between the Corporation, Underwriter and any Subscriber.

                  (b) The duties of the Escrow Agent are only such as are herein
specifically  provided  and such duties are purely  ministerial  in nature.  The
Escrow Agent's primary duty shall be to keep custody of and safeguard the Escrow
Fund during the period of the escrow,  to invest  monies held in the Escrow Fund
in accordance  with Section 2 hereof and to make  disbursements  from the Escrow
Fund in accordance with Section 4 hereof.

                  (c) The Escrow Agent shall be under no  obligations in respect
of the Escrow  Fund  other than to  faithfully  follow the  instructions  herein
contained  or  delivered  to the Escrow  Agent in  accordance  with this  Escrow
Agreement.  The  Escrow  Agent  may  rely  and  act  upon  any  written  notice,
instruction,  direction,  request,  waiver,  consent,  receipt or other paper or
document  which it in good faith  believes to be genuine and what it purports to
be and the Escrow  Agent shall be subject to no  liability  with  respect to the
form, execution or validity thereof. If, in the opinion of the Escrow Agent, the
instructions  it receives  are  ambiguous,  uncertain  or in  conflict  with any
previous  instructions  or this  Escrow  Agreement,  then  the  Escrow  Agent is
authorized to hold and preserve intact the Escrow Fund pending the settlement of
any such  controversy  by final  adjudication  of a court or  courts  of  proper
jurisdiction.

                  (d) The  Escrow  Agent  shall not be  liable  for any error of
judgment or for any act done or step taken or omitted by it, in good  faith,  or
for any mistake of fact or law, or for anything which it may in good faith do or
refrain  from  doing  in  connection  herewith,  unless  caused  by its  willful
misconduct or gross  negligence.  The  Corporation  shall indemnify and hold the
Escrow  Agent  harmless  from and against any and all claims,  losses,  damages,
liabilities and expenses,  including  reasonable  attorneys'  fees, which may be
imposed upon the Escrow Agent or incurred by the Escrow Agent in connection with
its acceptance of the  appointment as Escrow Agent  hereunder or the performance
of its duties hereunder, unless the Escrow Agent is determined to have committed
an  intentional  wrongful act or to have been grossly  negligent with respect to
its duties under this Escrow Agreement.

                                       2
<PAGE>

                  (e) The Escrow Agent shall return to the Corporation any sums
delivered to the Escrow Agent  pursuant to this Escrow  Agreement  for which the
Escrow Agent has not received release instructions pursuant to Section 4 hereof,
and as to which four years have passed since delivery.

                  (f) The Escrow Agent may consult with, and obtain advice from,
legal counsel (which may not be counsel to the  Corporation) in the event of any
dispute or questions as to the  construction of any of the provisions  hereof or
its duties hereunder, and it shall incur no liability in acting in good faith in
accordance with the written opinion and  instructions of such counsel.  The fees
for consultation with such counsel shall be paid by the Corporation.

                  (g)  Reference in this Escrow  Agreement  to the  Registration
Statement is for identification  purposes only, and its terms and conditions are
not thereby incorporated herein.

         4.       Distribution and Release of Funds.
                  ---------------------------------

                  (a) For   purposes   of   this   Escrow   Agreement,  the term
"Termination  Date" shall mean the earlier of:

                           (i)                    , 2001, or such later date set
                                    -------------
forth in a written notice purportedly  executed by the Corporation and delivered
to the Escrow  Agent at least five (5)  Business  Days prior to                ,
2001.                                                            --------------

                           (ii)     The  date,  if  any,  upon  which the Escrow
Agent receives a written notice purportedly  executed by the Corporation stating
that the  offering  has been  terminated,  or such  later date set forth in such
notice as the effective date of such termination; or

                           (iii)    Any  date  specified  by  the Corporation in
writing,  after the date the Escrow Agent has confirmed  that it has received in
the Escrow Fund at least the Minimum Funds in good, collected funds.

                  (b) On the Termination Date, the Escrow Agent shall certify to
the  Corporation  in writing the total amount of  collected  funds in the Escrow
Fund.

                  (c) The Escrow Agent shall return the funds  deposited with it
to the Subscribers if, on the Termination Date, the Escrow Fund does not consist
of collected  funds totaling at least the Minimum Funds.  The Escrow Agent shall
have fully  discharged  this obligation to return  Subscribers'  funds if it has
mailed to each  Subscriber,  at the address  furnished to it by the Corporation,
the Underwriter or any selected dealer,  by registered or certified mail, return
receipt  requested,  a bank check made payable to each Subscriber for the amount
originally deposited by that Subscriber, plus the Subscriber's pro rata share of
net interest  (defined below) earned without regard to the date the Subscriber's
funds were  deposited.  For purposes of this Escrow  Agreement,  "net  interest"
shall mean the interest  earned on the Escrow Fund, less any fees or expenses of
the Escrow Agent paid from the Escrow Fund pursuant to Section 5.

                  (d) At such time as (i) the total amount of collected funds in
the Escrow Fund equals at least the Minimum Funds, and (ii) the Escrow Agent has
received,  on or before the Termination Date, written  instructions  executed by
the  Underwriter  and the  Corporation,  the Escrow Agent shall  distribute  the
entire Escrow Fund, less commissions,  fees and expense reimbursement due to the
Underwriter  and  any  selected  dealers,  pursuant  to such  instructions.  The
commissions,  fees and expense reimbursement due to the Underwriter and selected
broker-dealers  shall be set forth in the written  instructions,  and the Escrow
Agent shall distribute the commissions,  fees and expense  reimbursement  due to
the Underwriter and selected dealers directly to the Underwriter. Subject to the
foregoing,  distributions  may be made to third  parties at the direction of the
Corporation.  Net  interest  earned  on the  Escrow  Fund  shall  be paid to the
Corporation.

                  (e) If the  Corporation  rejects a subscription  for which the
Escrow Agent has already  collected funds, the Escrow Agent shall promptly issue
a refund check to the  rejected  Subscriber.  Otherwise,  the Escrow Agent shall
promptly remit the rejected  Subscriber's check directly to the Subscriber.  Any

                                        3

<PAGE>

check returned unpaid to the Escrow Agent will be returned to the Underwriter or
selected  dealer that  submitted  the check.  Any check or other form of payment
received  by the Escrow  Agent not  payable to "M&T  Bank,  as Escrow  Agent for
Intervest  Corporation  of New York" shall be returned to the  Subscriber by the
Escrow Agent.

                  (f) For  purposes  hereof,  "collected  funds"  shall mean all
funds received by the Escrow Agent which have cleared  normal  banking  channels
and are in the form of cash.  Furthermore,  a check which is not (i) a certified
check  or (ii) a bank  draft or a  cashiers  check  drawn  on a bank  reasonably
acceptable to the Escrow Agent,  shall constitute  "collected  funds" only if it
has not been returned for insufficient funds within ten (10) Business Days after
its receipt by the Escrow Agent. No investment profits or losses and no interest
earned on any investments of the Escrow Fund shall be considered for purposes of
the above calculation.

                  (g) It  shall be a  condition  to the  return  of funds to any
subscriber  hereunder  that such  subscriber  shall have delivered to the Escrow
Agent a completed IRS Form W-9. The Corporation  shall include in the Prospectus
which is part of the Registration  Statement and/or in the subscription forms to
be executed by  subscribers,  notice of the requirement for delivery of such IRS
Form W-9 as a condition to the return of funds deposited in the Escrow Account.

                  (h)  This  Escrow  Agreement  shall  terminate  on  the  final
distribution of the Escrow Fund, at which time the Escrow Agent shall be forever
and irrevocably released and discharged from any and all further  responsibility
or liability with respect to the Escrow Fund.

         5.       Compensation.  The  Corporation agrees to pay the Escrow Agent
                  ------------
a fee of $300 as compensation  for its services in connection with  establishing
the Escrow Fund, payable at the time this Escrow Agreement is executed,  whether
or not any Debentures are sold. In addition, the Corporation shall pay an annual
maintenance fee of $100, prorated for the number of months the Escrow Account is
open, payable whether or not any Debentures are sold. The Corporation shall pay,
in addition to the foregoing fees, the following charges:

                       $700.00      Handling and processing fees.
                       $  7.50      Per check disbursed.
                       $ 10.00      Per  prorated  net  interest  computation if
                                    funds are returned to investors.
                       $ 10.00      Per  Form 1099 required to be transmitted by
                                    the Escrow Agent.
                       $ 25.00      Per check returned for insufficient funds.

Except for the set-up fee due upon execution of this Escrow Agreement,  the fees
and charges shall be paid by the  Corporation  on the date(s) the Escrow Fund is
distributed  pursuant  to Section 4. The  Escrow  Agent  shall have the right to
cause any fees due hereunder to be paid out of the interest earned on the Escrow
Account.

         6.       Termination.  This  Escrow  Agreement shall terminate no later
                  ------------
than the  Termination  Date,  or on such  earlier date as the Escrow Agent shall
have paid out a total of at least  $4,000,000  in collected  funds in accordance
with the provisions of this Escrow Agreement.

         7.       Resignation and Removal of Escrow Agent. The  Escrow Agent may
                  ---------------------------------------
at any time resign and be  discharged of the duties and  obligations  created by
this Escrow  Agreement by giving at least sixty (60) days' written notice to the
Corporation  and the  Underwriter;  the Escrow  Agent may be removed at any time
upon  sixty  (60)  days'  notice  by  an  instrument  purportedly  signed  by an
authorized  person of the Corporation and the Underwriter.  Any successor Escrow
Agent shall be appointed and approved by the  Corporation  and the  Underwriter.
Any such  successor  Escrow  Agent shall  deliver to the former  Escrow  Agent a
written  instrument,  acknowledged  by  the  Corporation  and  the  Underwriter,
accepting such appointment hereunder and thereupon it shall take delivery of the
Escrow Fund to hold and  distribute in accordance  with the terms hereof.  If no
successor  Escrow Agent shall have been appointed  within thirty (30) days after
the  Corporation  and  the  Underwriter  are  notified  of  the  Escrow  Agent's
resignation, the Escrow Agent shall return the Escrow Fund to the Subscribers in
accordance  with the procedure  set forth in Section 4(c).  Upon the delivery of
the Escrow Fund in  accordance  with this  Section 7, the Escrow  Agent shall be
discharged from any further duties hereunder.

                                        4

<PAGE>

8.       Binding Effect.  This  Escrow  Agreement shall be binding upon
                  --------------
and inure to the benefit of the parties, their successors and assigns.

         9.       Headings.  The headings contained in this Escrow Agreement are
                  --------
intended for  convenience  and shall not in any way  determine the rights of the
parties to this Escrow Agreement.

         10.      Waiver.  Waiver  of  any  terms  or  conditions of this Escrow
                  ------
Agreement  by any party shall not be  construed  as (a) a waiver of a subsequent
breach or  failure of the same term or  condition,  or (b) a waiver of any other
term or condition of this Escrow Agreement.

         11.      Counterparts.  This Escrow Agreement may be executed in one or
                  ------------
more counterparts,  each of which shall be deemed an original,  and it shall not
be necessary in making proof of this Escrow  Agreement to produce or account for
more than one such counterpart.

         12.      Modification.  This  Escrow  Agreement  constitutes the entire
                  ------------
agreement between the parties as to the escrow of Subscribers'  funds, and shall
not be modified except in writing signed and acknowledged by all the parties.

         13.      Notices.  All notices and communications hereunder shall be in
                  -------
writing and shall be deemed to be duly given on the date delivered by the United
States Mail,  registered or certified mail,  return receipt  requested,  postage
prepaid  to the  address  of the  Corporation  and  Underwriter  as first  above
written,  and to the  Escrow  Agent at M&T Bank,  M&T  Place,  255 East  Avenue,
Rochester, New York 14604, Attention: Lynn M. Carleton,  provided, however, that
notices may be given by telex, cable,  telecopier,  courier service,  telephone,
personal  delivery  or  otherwise,  effective  the  date of such  communication,
provided  that notices  given by such means of  communications  are confirmed by
mail as aforesaid,  postmarked  within one business day after such other form of
communication.

         14.      Governing Law.  This  Escrow  Agreement shall be construed and
                  -------------
enforced  in  accordance  with the laws of the  State of New York.  The  parties
consent to the personal jurisdiction of all courts of the State of New York, and
agree that such jurisdiction shall be exclusive.

         IN WITNESS WHEREOF, the parties have executed and delivered this Escrow
Agreement as of the date and year first above written.

CORPORATION:                    INTERVEST CORPORATION OF NEW YORK

                                By:
                                    --------------------------------------------
                                Its:
                                     -------------------------------------------

ESCROW AGENT:                   MANUFACTURERS AND TRADERS TRUST COMPANY

                                By:
                                    --------------------------------------------
                                Its:
                                     -------------------------------------------

UNDERWRITER:                    SAGE, RUTTY & CO., INC.

                                By:
                                    --------------------------------------------
                                Its:
                                     -------------------------------------------

                                        5<PAGE>

                                                                   EXHIBIT 10.16
Execution Copy

                         INVESTMENT ADVISOR AGREEMENT
                         ----------------------------

        This INVESTMENT ADVISOR AGREEMENT (the "Agreement") is effective as of
May 31, 2000 by and between STATE STREET BANK AND TRUST COMPANY, a trust company
organized under the laws of the Commonwealth of Massachusetts ("State Street"),
and DRESDNER RCM GLOBAL INVESTORS LLC (the "Advisor").

        WHEREAS the American Bar Association Members Retirement Trust and the
American Bar Association Members Pooled Trust for Retirement Plans (collectively
referred to as the "Trusts"), for which State Street acts as trustee, are
maintained pursuant to agreements between the American Bar Retirement
Association ("ABRA") and State Street for the purpose of funding the American
Bar Association Members Retirement Plan, the American Bar Association Members
Defined Benefit Pension Plan (together, the "ABA Members Plans") and other
employee benefit plans, as adopted by eligible individuals, organizations,
partnerships, corporations or associations (each such individual employee
benefit plan being referred to as a "Plan" and collectively as the "Plans"),
which Plans must meet the requirements for qualification under Section 401 of
the Internal Revenue Code of 1986, as amended and in effect from time to time
(the "Code");

        WHEREAS, certain assets of the Trusts are deposited in a
collective investment fund, known as the INTERNATIONAL EQUITY FUND (the "Fund"),
established under the American Bar Association Members/State Street Collective
Trust (the "ABA Members Collective Trust") established by State Street, as
trustee (the "Trustee"), pursuant to the Declaration of Trust dated December 5,
1991, as amended and in effect from time to time (the "Declaration of Trust");

        WHEREAS, the Fund is established under a group trust maintained by the
Trustee and is exempt from tax pursuant to Revenue Ruling 81-100;

        WHEREAS, the Trustee desires to retain the Advisor to act as its
investment advisor to assist the Trustee in managing such assets of the Fund as
the Trustee may designate from time to time in writing to the Advisor (the
"Subaccount") by making recommendations to the Trustee with respect to the
investment and reinvestment of the assets in the Subaccount; and

        WHEREAS the parties desire to set forth, among other things, the duties,
terms and conditions under which the Advisor will carry out such advisory
functions and the Trustee will perform certain of its functions with respect to
managing and administering the Subaccount and the Fund;
<PAGE>

                                                                               2

        NOW, THEREFORE, in consideration of the promises and mutual covenants
contained in this Agreement, it is agreed as follows:

        1.     Appointment of the Advisor. The Advisor is hereby appointed and
               --------------------------
employed as investment advisor to the Trustee to assist the Trustee in its
management of such assets of the Fund as are held in the Subaccount from time to
time. The Advisor shall provide investment advice and recommendations and shall
render certain other related services to or on behalf of the Trustee, all in
accordance with the terms and conditions of this Agreement.

        2.     Acceptance by the Advisor. The Advisor hereby accepts such
               -------------------------
appointment and employment and acknowledges that, (a) with respect to the assets
in the Subaccount, it is a fiduciary, as defined in the Employee Retirement
Income Security Act of 1974, as amended ("ERISA"), with respect to the Trusts
and the Plans and (b) no person associated with the Advisor is a trustee or
administrator of, or an employer of anyone covered by, any Plan. The Advisor
represents that it is registered, or exempt from registration, under the
Investment Advisers Act of 1940, as amended (the "Advisers Act"), and that it is
in the business of acting as a fiduciary with respect to assets of various
retirement plans and trusts. The Advisor agrees and covenants that it will
notify the Trustee within ten (10) business days of (v) any change of its status
under the Advisers Act, (w) the receipt of formal notice of the commencement of
any proceeding by any governmental agency to take any action which would change
its status under the Advisers Act, (x) notice by any governmental agency of the
intent to place material limitations on the activities of the Advisor, (y)
notice by any governmental agency that it intends to begin an investigation of
the Advisor that is outside of the scope of routine investigations that such
agency conducts from time to time of businesses engaged in the same or similar
activities as the Advisor, or (z) notice by any governmental agency that it has
identified an area of non-compliance or other concern in the course of any
investigation of the Advisor. Throughout this Agreement, the term "business day"
shall mean any day in which the New York Stock Exchange is open for trading and
on which the Trustee's principal office is open for business.

        3.     Definition of Subaccount. The Subaccount for which the Advisor
               ------------------------
has been appointed to render investment advice and certain other services
consists of the assets set forth in Appendix A. The Trustee may change the
                                    -----------
composition of or the amount of assets included within the Subaccount, by
amending Appendix A, after written notice to the Advisor and ABRA.
         ----------

        4.     The Advisor's Services.

               (a)  Investment Process. The Advisor shall make timely
                    ------------------
recommendations to the Trustee as to how the Trustee should invest and reinvest
the assets of the Subaccount and, in that connection, may recommend that the
Trustee purchase, sell or otherwise invest the assets of the Subaccount on the
terms and conditions recommended by the Advisor in a manner consistent with the
provisions of this Agreement. The manner and procedures for effecting any such
purchases, sales or investments are set forth in Subsection 4(c) below. From
time to time at the request of
<PAGE>

                                                                               3

the Trustee, the Advisor shall consult with the Trustee on a timely basis with
respect to any recommendation made by the Advisor or otherwise with respect to
the investment of the assets of the Subaccount.

               (b)  Compliance With Policies and Other Requirements. In
                    -----------------------------------------------
providing its investment advice and other related services, the Advisor shall
act in accordance with the investment objectives and policies for the Fund as
set forth in the Fund Declaration pursuant to which the Fund is established and
maintained, as the same may be amended from time to time by the Trustee (the
"Fund Declaration"), a copy of which is attached hereto as Appendix B, and in
                                                           ----------
accordance with any additional investment objectives and policies that have been
established by the Trustee for the Subaccount as set forth in Appendix C, as the
                                                              ----------
same may be amended from time to time by the Trustee. In providing its
investment advice and other related services under this Agreement, the Advisor
shall comply with all of the Trustee's reasonable operating requirements as the
same may be communicated in writing by the Trustee to the Advisor from time to
time. The Advisor shall comply with any changes to such operating requirements
that the Trustee may make from time to time within a period of time reasonably
specified by the Trustee (or if none is specified, within a reasonable time
period) after notice of such changes is communicated in writing by the Trustee
to the Advisor.

               (c)  Recommendation Procedures. The Advisor shall place orders or
                    -------------------------
otherwise give instructions with respect to the investment of the assets in the
Subaccount only after prior notification to and approval by the Trustee in
accordance with the provisions of this Subsection 4(c). Except in accordance
with the following provisions, the Advisor shall have no authority to place
orders for the execution of transactions involving assets of the Subaccount or
to give instructions to the Trustee with respect thereto:

                    (i)  Broker List. On or prior to the first business day of
                         -----------
each month, the Trustee shall consider brokers recommended by the Advisor and
shall approve, to the extent deemed appropriate by the Trustee, a list of not
more than one hundred (100) brokers through whom transactions with respect to
the assets in the Subaccount may be effected during the following month (the
"Broker List"). From time to time by means of Valid Notice (as defined below),
the Advisor may request an amendment (the "Advisor's Amendment") to the Broker
List. The Trustee shall exercise reasonable efforts to notify the Advisor
whether or not the Trustee authorizes the Advisor's Amendment to the Broker List
by means of Valid Notice within one (1) complete business day (i.e., not later
                                                               ---
than the same time of day on the next business day) following its receipt of the
Advisor's Amendment and if the Trustee does not so notify the Advisor, then the
Advisor's Amendment shall be deemed to be approved at the conclusion of such one
business day period. The Trustee may effect an amendment to the Broker List at
any time upon Valid Notice to the Advisor.

                    (ii) Real-Time Recommendations. From time to time by means
                         -------------------------
of Valid Notice (as defined below), the Advisor may make
<PAGE>

                                                                               4

recommendations as to proposed transactions with respect to the assets of the
Subaccount (the "Advisor's Recommendation"). The Advisor's Recommendation shall
(A) be directed to the employee or employees of the Trustee designated for such
purpose by the Trustee from time to time by Valid Notice and (B) describe the
transaction being recommended by the Advisor in such detail and specificity as
the Trustee may reasonably require. For this purpose, if the transaction is to
be effected at the market price on the applicable exchange or trading system, a
statement to such effect shall be sufficient to describe the proposed sale or
purchase price. The Trustee shall exercise reasonable efforts to notify the
Advisor by means of Valid Notice whether or not the Trustee authorizes the
transaction recommended in the Advisor's Recommendation ("the Trustee's
Response"). The Trustee shall exercise reasonable efforts to deliver the
Trustee's Response within one (1) hour following its receipt of the Advisor's
Recommendation and if the Trustee does not deliver the Trustee's Response to the
Advisor within such one-hour period, then the transaction or transactions
recommended in the Advisor's Recommendation shall be deemed to be approved;
provided, however, that if the Advisor's Recommendation is received by the
--------  -------
Trustee after 9:00 p.m. Eastern time on any business day, then the one-hour
period described in this Subsection 4(c)(ii) shall be extended so that it
expires at 9:00 a.m. Eastern time on the next succeeding business day.

          (iii)   Authorized Transactions. A transaction shall become an
                  -----------------------
"Authorized Transaction" when it is (A) approved pursuant to the Trustee's
Response or (B) deemed approved pursuant to Section 4(c)(ii). Notwithstanding
the foregoing, unless the Trustee has otherwise notified the Advisor by Valid
Notice, a transaction shall also be an "Authorized Transaction" if it is a
transaction to be effected at the market price on the applicable exchange or
trading system with respect to an additional acquisition or a disposition of a
particular security held in the Subaccount, provided that, individually and in
the aggregate, acquisitions and dispositions related to the same security during
the same business day will not increase or decrease by more than twenty-five
percent (25%) (Y) the number and value of shares of such security (if such
security is an equity security) or (Z) the principal amount of such security (if
such security is a debt security), immediately upon giving effect to all such
transactions offered during such business day, provided further that at all
times the Subaccount shall comply fully with the provisions of the Fund
Declaration and any additional objectives and policies set forth in Exhibit C.
                                                                    ---------
The designation of a transaction as an Authorized Transaction hereunder shall be
binding against the Trustee and the Authorized Transaction shall remain validly
approved and authorized until the earlier of (AA) the time that it is expressly
countermanded by Valid Notice from the Trustee to the Advisor or (BB) at the end
of the twentieth (20th) business day following its designation as an Authorized
Transaction.

          (iv)    Investment Authority. With respect to any Authorized
                  --------------------
Transaction, the Advisor may take any and all action necessary or desirable to
effect such Authorized Transaction, including but not limited to (A) placing an
order with a broker named in the Broker List for the execution of the
<PAGE>

                                                                               5

Authorized Transaction and (B) issuing to the Trustee such instructions as may
be appropriate in connection with the settlement of such Authorized Transaction.

               (v)  Valid Notice. "Valid Notice" shall mean (A) written notice
                    ------------
or communication, which may be made by facsimile or by electronic transmission
in a format and method reasonably acceptable to the Trustee, or (B) oral notice
or communication that is recorded by the Trustee or the Advisor and is available
for subsequent verification.

          (d)  Custody of Assets and Confirmation of Transactions. To the extent
               --------------------------------------------------
required by applicable law, the Advisor shall direct that all securities
purchased and the proceeds from the sale of securities for the Subaccount be
delivered to the Trustee, unless otherwise directed by the Trustee. The Advisor
shall direct any broker effecting a transaction with respect to the assets of
the Subaccount to send the Trustee a duplicate copy of any confirmation of any
such transaction, except that the Advisor may make other arrangements (which are
reasonably satisfactory to the Trustee) for the Trustee to receive such
duplicate confirmations or comparable information acceptable to the Trustee.

          (e)  Communications Regarding Investment Securities. The Trustee shall
               ----------------------------------------------
send, or cause to be sent, on a timely basis, copies of all communications
(including but not limited to proxy statements, tender offers and class action
communications) from or relating to companies, the securities or other
instruments of which are held in the Subaccount, to the Advisor. The Advisor
shall be responsible for making a recommendation to the Trustee, in such detail
and specificity as the Trustee may reasonably require, as to the appropriate
response to such communications (the "Suggested Response"). Such Suggested
Response shall be made by the Advisor by Valid Notice, at least one (1) complete
business day (i.e., not later than the same time of day or the next business
              ---
day) prior to the deadline for such response. Such Suggested Response shall be
directed to the employee or employees of the Trustee designated for such purpose
by the Trustee from time to time by Valid Notice. If the Trustee decides not to
follow the Suggested Response, it shall so notify the Advisor by Valid Notice
(the "Trustee's Rejection") not later than the earlier of one (1) complete
business day (i.e., not later than the same time of day or the next business
              ---
day) following its receipt of the Suggested Response or two (2) hours before the
response deadline. Failure by the Trustee to give the Trustee's Rejection to the
Advisor within such period shall constitute the Trustee's approval of the
Suggested Response, and shall constitute authorization to the Advisor to (i)
take such action as is appropriate to effect the Suggested Response and (ii)
issue to the Trustee such instructions as may be appropriate in connection with
effecting the Suggested Response.

          (f)  Advisor's Duty of Care. The Advisor shall discharge its duties
               ----------------------
with respect to the Subaccount solely in the interests of the participants in
the Plans and their beneficiaries with the care, skill, prudence and diligence
under the circumstances then prevailing that a prudent person acting in like
capacity and familiar with such matters would use in the conduct of an
enterprise of like character and with like aims. The Advisor shall not be
responsible for the operation or administration of the
<PAGE>

                                                                               6

Trusts or the Plans. The Advisor shall have no investment advisory
responsibilities other than those expressly provided in this Agreement. The
Advisor shall discharge its duties in accordance with the requirements of ERISA,
other applicable law and this Agreement.

          (g)  Fidelity Bond and Insurance. The Advisor shall maintain for the
               ---------------------------
period of the Agreement a fidelity bond meeting the requirements of Section 412
of ERISA (unless the Trustee acknowledges that the Advisor is exempt from such
requirements) and including its officers, directors and employees to the extent
so required. The Advisor will provide to ABRA and the Trustee within twenty (20)
business days of the effective date of this Agreement copies of all insurance
policies (including fiduciary, errors and omissions, and fidelity bonds) that
could cover or relate to the Subaccount, the Fund, the Trusts or the Plans, and,
upon request by the Trustee or ABRA, a certificate of coverage with respect to
any such policies. The Advisor will notify ABRA and the Trustee of any material
changes in such policies, which change affects the coverage of the Advisor,
within twenty (20) business days after the earlier of when such changes are made
or are effective.

          (h)  Brokerage Practices. In placing orders for the purchase and sale
               -------------------
of assets of the Subaccount in accordance with Subsection 4(c), the Advisor
shall act in accordance with the procedures with regard to brokerage practices
for the Subaccount, as described in Appendix D. The Advisor shall make its
                                    ----------
recommendations of brokers or dealers in accordance with its best judgment and
in a manner consistent with ERISA and other applicable law. The Advisor shall
recommend those brokers or dealers for inclusion on the Broker List using its
best judgment to choose the broker or dealer most capable of providing the
brokerage services necessary to obtain the "best available price and most
favorable execution." The Trustee recognizes that the Advisor may, in accordance
with Section 28(e) of the Securities Exchange Act of 1934, as amended, recommend
a broker or dealer who will charge a commission for effecting a securities
transaction that will exceed the amount of commission another broker or dealer
would have charged for effecting such transaction, where the Advisor has
determined in good faith that the amount of such commission was reasonable in
relation to the value of the brokerage and research services provided by such
broker or dealer to, or for the benefit of, the Subaccount, viewed in terms of
either that particular transaction or such broker or dealer's overall
responsibilities with respect to the Subaccount.

          (i)  Nondisclosure of Information. To the extent necessary for the
               ----------------------------
execution of this Agreement or to satisfy the requirements for disclosure to
participants or to meet the requirements of Sections 8 and 9, the Advisor shall
keep in strict confidence all information about the financial affairs of the
Subaccount. The Advisor may include information about the Subaccount in
aggregate information provided by the Advisor as long as the information is not
set out separately or in any other manner that would enable a third party to
determine the financial affairs of the Subaccount.

          (j)  Advisor's Potential Conflicts of Interest. The Advisor (and any
               -----------------------------------------
affiliate thereof) may engage in any other business or act as advisor to or
investment manager for any other person, even though it (or any affiliate
thereof) or such other
<PAGE>

                                                                               7

person has, or may have, investment policies similar to those followed by the
Advisor with regard to the Subaccount. Nothing in this Agreement shall prevent
the Advisor (or any affiliate thereof) from buying or selling, or from
recommending or directing such other person to buy or sell, at any time,
securities of the same kind or class recommended by the Advisor to be purchased
or sold for the Subaccount. The Advisor shall be free from any obligation to the
Subaccount to recommend any particular investment opportunity which comes to it.
However, if the Advisor effects the purchase or sale of the same securities for
the Subaccount and other accounts at the same time that orders are open for the
Subaccount and the other accounts, the pricing of or proceeds from such
securities shall be allocated among the other accounts and the Subaccount in a
just and equitable manner.

               (k)  Valuation. At the request of the Trustee from time to time,
                    ---------
the Advisor shall provide pricing and valuation information with respect to
particular securities it has recommended for the Subaccount if the Trustee has
determined that such pricing and valuation information is not otherwise
reasonably available to the Trustee through standard pricing services.

          5.   Representations by the Trustee. The Trustee represents and
               ------------------------------
warrants that (a) there are no restrictions or limitations on the Subaccount's
investments imposed by applicable law other than (i) those set forth in the
Declaration of Trust, the Fund Declaration, this Agreement, and Appendix C, as
                                                                ----------
any of the same may be amended from time to time and communicated to the
Advisor, (ii) those provided in ERISA and (iii) any other investment restriction
or limitation imposed by law or regulation which in the Trustee's judgment is
applicable to the Subaccount and which is communicated by the Trustee to the
Advisor; and (b) disclosure to Plan participants contained in the Registration
Statement describing the Subaccount is accurate and prepared in accordance with
the requirements of Form S-1 under the Securities Act of 1933, as amended,
except that the Trustee makes no representation or warranty with respect to any
disclosure relating to the Advisor or its services with respect to the
Subaccount which the Advisor has prepared, approved in writing or has not
disapproved within five (5) business days following confirmed transmission by
facsimile, acceptable electronic transmission or overnight mail to a person
designated by the Advisor to review such disclosure.

          6.   Liability of the Advisor; Indemnification.

               (a)  Limitation of Liability of the Advisor. The Advisor shall
                    --------------------------------------
not be liable for any act or omission of any other person or entity exercising a
fiduciary responsibility, if such fiduciary responsibility has been allocated to
such other person or entity in accordance with this Agreement, the Declaration
of Trust, the Fund Declaration, the Plans or the Trusts, except to the extent
that the Advisor has itself violated its fiduciary responsibility or its
obligations under this Agreement, or except to the extent that applicable law
(including ERISA) may expressly provide otherwise.

               (b)  Indemnification.
                    ---------------
<PAGE>

                                                                               8

               (i)    Indemnification of Advisor. To the extent permitted by
                      --------------------------
     applicable law, the Trustee agrees to indemnify and hold harmless the
     Advisor for losses, damages or expenses resulting from (A) actions taken by
     the Advisor in reliance on information provided by the Trustee to the
     Advisor in accordance with this Agreement, including but not limited to the
     Trustee's operating requirements and cash availability information, (B)
     actions omitted to be taken by the Advisor pursuant to instructions or
     directions provided by the Trustee and/or (C) valuation of the assets held
     in the Subaccount, computation of unit values for the Subaccount by the
     Trustee, or performance data and other financial information provided by
     the Trustee to Subaccount participants except to the extent that the
     Advisor has incorrectly reported or failed to report securities
     transactions in the Subaccount to the Trustee as provided in this Agreement
     and to the extent that any error in such valuation or computation is due to
     prices or other information provided by the Advisor.

               (ii)   Indemnification of the Trustee. To the extent permitted by
                      ------------------------------
     applicable law, the Advisor agrees to indemnify and hold harmless the
     Trustee for any losses, damages or expenses resulting from (A) any
     recommendation of the Advisor or based on information provided by the
     Advisor, (B) the Advisor's failure to provide correct and timely
     information or to make recommendations on a timely basis as provided in the
     Agreement, and (C) any disclosure relating to the Advisor or the services
     provided by the Advisor with respect to the Subaccount which the Advisor
     has prepared, approved in writing or has not disapproved within five (5)
     business days following transmission by facsimile, acceptable electronic
     transmission or overnight mail to a person designated by the Advisor to
     review such disclosure; provided, however, that the Advisor shall not be
                             --------  -------
     required to indemnify and hold harmless the Trustee to the extent that such
     losses, damages or expenses result from an act or omission of the Advisor
     with respect to which the Advisor not only has used such care, skill,
     prudence and diligence as a reasonably prudent person acting in like
     capacity and familiar with such matters would use in the conduct of an
     enterprise of like character and with like aims, but also has otherwise
     acted in accordance with this Agreement.

               (iii)  Advisor and Trustee Indemnification Procedures. If the
                      ----------------------------------------------
     party seeking indemnification is either the Advisor or the Trustee, such
     party shall promptly notify the indemnifying party of any claim, action,
     suit or proceeding, or threat thereof, which may result in a claim for
     indemnification. Upon such notification, the indemnifying party may, at its
     option, undertake the conduct and cost of defending any such claim, action,
     suit or proceeding and in such case shall have full control of such
     defense, including but not limited to selection of counsel (provided that
     such counsel must be reasonably acceptable to the party being indemnified)
     and entry into settlement agreements (provided that any such settlement
     agreement shall require the consent of the party being indemnified, which
     consent shall not be unreasonably delayed or withheld). The Trustee or the
     Advisor, as the indemnifying party, shall not be liable for any legal or
     other expenses incurred in connection with any such defense that were not
<PAGE>

                                                                               9

     specifically authorized by it; provided, however, if such indemnifying
                                    --------  -------
     party fails to undertake and prosecute vigorously the defense of any such
     claim, action, suit or proceeding, it shall be liable for reasonable legal
     and other expenses incurred by the party being indemnified.

               (c)  Indemnification of ABRA.
                    -----------------------

                    (i)   To the extent permitted by applicable law, the Advisor
     agrees to defend, indemnify and hold harmless ABRA, its then present and
     former officers, directors and advisory directors, the ABA, and its then
     present and former officers and Board of Governors (the "Indemnified
     Parties") against any and all expenses (including attorney's fees,
     judgments, fines and penalties, including any civil penalties assessed
     under Section 502(l) of ERISA) and amounts paid in settlement actually or
     reasonably incurred in connection with any threatened, pending or current
     action, suit, proceeding or claim, whether civil, criminal, administrative
     or otherwise, and the amount of any adverse judgment entered against any of
     them and any reasonable expenses attendant thereto by reason of any of the
     Advisor's acts or omissions in connection with this Agreement. For the
     above defense, indemnity and hold harmless provision to apply (i) the
     Indemnified Persons (or ABRA) shall inform the Advisor promptly of any
     claims threatened or made against any Indemnified Person, (ii) the
     Indemnified Persons shall cooperate fully with the Advisor in responding to
     such threatened or actual claims and (iii) any settlement agreement entered
     into by the Indemnified Persons shall require the written approval of the
     Advisor, which approval shall not be unreasonably withheld or delayed, and
     any settlement entered into by the Advisor shall require written approval,
     within the time frame established by the Advisor, of the Indemnified
     Persons, which approval shall not be unreasonably withheld.

                    (ii)  Right to Counsel. The Indemnified Persons shall have
                          ----------------
     the right to employ counsel in their, its, his or her sole discretion. Such
     Indemnified Persons shall be responsible for the expenses of such separate
     counsel except as provided in Subsection 6(c)(iii). The Advisor agrees to
     cooperate fully with the Indemnified Persons and their separate counsel in
     responding to such threatened or actual claims.

                    (iii) Separate Counsel. The Advisor agrees to cooperate
                          ----------------
     fully with the Indemnified Persons in responding to such threatened or
     actual claims. The Indemnified Persons shall have the right to reasonable
     expenses of separate counsel paid by the Advisor, provided that the Advisor
                                                       --------
     shall not be liable for any legal or other expenses incurred in connection
     with any such threatened claim or defense that were not specially
     authorized by the Advisor in writing and provided that the Advisor shall
                                              --------
     have received a written opinion reasonably acceptable in form and substance
     to the Advisor of counsel reasonably acceptable to the Advisor (and which
     counsel shall not represent or otherwise be affiliated with any of the
     Indemnified Persons) that there exists a material conflict of interest
     between one or more of the Indemnified Persons and the Advisor in the
<PAGE>

                                                                              10

     conduct of the response to a threatened claim or in the conduct of the
     defense of an actual claim, in which event the Advisor shall be liable for
     the reasonable legal expenses of each counsel whose appointment is
     necessary to resolve such conflict; provided, however, the Advisor shall
                                         --------  -------
     not be responsible for more than one (1) counsel for all Indemnified
     Persons and selection of such counsel shall be reasonably acceptable to the
     Advisor.

                    (iv)   Payment of Expenses. Expenses (including counsel
                           -------------------
     fees) specifically authorized by the Advisor and actually and reasonably
     incurred by the Indemnified Persons in defending against or responding to
     such threatened or actual claims as provided in (i) and (iii) of this
     Subsection shall be paid as they are incurred. If an Indemnified Person is
     reasonably required to bring any action to enforce rights or collect monies
     due under Subsection 6(c) and is successful in such action, the Advisor
     shall reimburse such Indemnified Person or its subrogee for reasonable fees
     and expenses incurred in bringing and pursuing such action.

                    (v)    Supplemental Rights. Indemnification pursuant to
                           -------------------
     Subsection 6(c) is intended to be supplemental to any other rights to
     indemnification available to the Indemnified Persons. Nothing herein shall
     be deemed to diminish or otherwise restrict the Indemnified Persons' rights
     to indemnification under law.

                    (vi)   Third Party Beneficiaries. The indemnifying party
                           -------------------------
     acknowledges that the Indemnified Persons are intended to be third-party
     beneficiaries of Subsection 6(c).

          7.   Transactions Prohibited with Respect to the Advisor. The Advisor,
               ---------------------------------------------------
its officers, partners, directors and affiliates, and each of them, shall not,
with respect to the Subaccount, (a) as a principal, purchase assets from or sell
assets to the Fund, (b) receive any compensation or fees with respect to the
Fund, other than the fees provided for in Appendix E, (c) engage in or recommend
                                          ----------
any transaction involving or affecting the Fund that such person knows or should
know is a prohibited transaction under ERISA unless such transaction is exempt
under the applicable provisions of ERISA or (d) direct delivery of securities or
payment to itself or direct any disposition of securities or cash from the
Subaccount except to the Trusts.

          8.   Reports and Meetings.
               --------------------

               (a)   Monthly Reports. At least monthly the Advisor shall render
                     ---------------
to the Trustee and ABRA, or their designee, reports concerning its services
under this Agreement and the status of the Subaccount, based on the reporting
procedures set forth in Appendix F, which is hereby adopted and made a part of
                        ----------
this Agreement, including statements of investments in the Subaccount.

               (b)   Meetings. The Advisor will meet with the Trustee and ABRA
                     --------
and with such other persons as the Trustee or ABRA may designate on reasonable
notice and at reasonable times and locations, to discuss general economic
conditions,
<PAGE>

                                                                              11

Subaccount performance, investment strategy and other matters relating to the
Subaccount.

               (c)  Reports Prior to Termination. On each day during the period
                    ----------------------------
ten (10) business days prior to the effective date of the Advisor's resignation
or its removal under this Agreement by the Trustee (the "Termination Date"), or
on each day of such shorter period after which the Advisor has received notice
of its removal, the Advisor shall render to the Trustee and ABRA, or their
designee, a report of the current status of the Subaccount based on the
procedures set forth in Appendix F, including a statement of investments in the
                        ----------
Subaccount and on the day immediately following the Termination Date, such
report shall be rendered in final form with respect to the status of the
Subaccount, including a statement of investments therein, as of the close of
business on the Termination Date.

               (d)  Additional Reports. The Advisor shall furnish to the Trustee
                    ------------------
and ABRA such additional reports and information as may be reasonably requested
by the Trustee or ABRA.

          9.   Accounting. The Advisor shall keep accurate and detailed records
               ----------
concerning its services under this Agreement, including records of all
transactions effected and recommendations made during its performance of this
Agreement, and all such records shall be open to inspection at all reasonable
times by the Trustee and ABRA, or their designee, and by duly authorized
representatives of the Secretary of Labor and the Secretary of the Treasury
acting pursuant to their authority under ERISA and the Code, respectively, and
other appropriate regulatory authorities.

          10.  Advisor's Compensation. The amount and manner of payment of fees
               ----------------------
payable by the Trustee to the Advisor for the Advisor's services under this
Agreement are set forth in Appendix E. The Advisor agrees that if it enters into
                           ----------
a fee schedule with any new non-eleemosynary client whose portfolio is advised
or managed under the same investment policies and objectives as the Subaccount,
and is similarly or smaller sized, for services which are similar to the
services provided under this Agreement and such fee schedule contains fees that
are less than the fees set forth in Appendix E, it will offer the same fee
                                    ----------
schedule to the Trustee, which shall have the right to require the amendment to
Appendix E to reflect that lower fee schedule.
----------

          11.  Removal and Resignation.

               (a)  Removal of the Advisor. Upon written notice to the Advisor,
                    ----------------------
the Advisor may be removed by the Trustee. Any transaction for the Subaccount
authorized by the Trustee prior to the receipt by the Advisor of the notice
shall be consummated, and the Advisor shall not recommend any transaction for
the Subaccount subsequent to the receipt of the notice.

               (b)  Resignation of the Advisor. The Advisor may resign under
                    --------------------------
this Agreement upon sixty (60) days' prior written notice to the Trustee. The
Advisor shall concurrently advise ABRA in writing of such resignation and the
effective date thereof.
<PAGE>

                                                                              12

shall concurrently advise ABRA in writing of such resignation and the effective
date thereof.

                    (c)  Termination of Obligations. The respective obligations
                         --------------------------
of the Advisor and the Trustee under Section 6 of the Agreement shall survive
any such removal or resignation or other termination of this Agreement.

               12.  Termination, Amendment or Modification. The provisions of
                    --------------------------------------
this Agreement may not be terminated, changed, modified, altered or amended in
any respect except in a writing signed by the parties.

               13.  Definitions. As used herein the following terms shall have
                    -----------
the meanings ascribed to them in the following sections of this Agreement:

           Term Defined                                 Section
           ------------                                 -------
           ABA Members Collective Trust                 Introduction
           ABA Members Plans                            Introduction
           ABRA                                         Introduction
           Advisers Act                                 2
           Advisor                                      Introduction
           Advisor's Amendment                          4(c)(i)
           Advisor's Recommendation                     4(c)(ii)
           Agreement                                    Introduction
           Authorized Transaction                       4(c)(iii)
           Broker List                                  4(c)(i)
           business day                                 2
           Code                                         Introduction
           Declaration of Trust                         Introduction
           ERISA                                        2
           Fund                                         Introduction
           Fund Declaration                             4(b)
           Indemnified Parties                          6(c)(i)
           Plans                                        Introduction
           State Street                                 Introduction
           Subaccount                                   Introduction
           Suggested Response                           4(e)
           Termination Date                             8(c)
           Trustee                                      Introduction
           Trustee's Response                           4(c)(ii)
           Trustee's Rejection                          4(e)
           Trusts                                       Introduction
           Valid Notice                                 4(c)(v)

               14.  Governing Law. This Agreement shall be construed and
                    -------------
enforced according to the laws of The Commonwealth of Massachusetts and, to the
extent of any federal preemption, the laws of the United States of America.
<PAGE>

                                                                              13

               15.  Binding upon Successors. This Agreement shall be binding
                    -----------------------
upon and enforceable by the successors to the parties hereto.

               16.  Assignment. The Advisor may not assign this Agreement
                    ----------
(including for this purpose any assignment within the meaning of the Advisers
Act), or any rights or responsibilities hereby created, without the prior
written consent of the Trustee, which consent may be withheld by the Trustee in
its sole discretion; however, the parties may amend this Agreement from time to
time in accordance with Section 12.

               17.  Notices. Written notices shall be deemed effective with
                    -------
respect to a party upon delivery to such party at the address set forth below or
to such other address as may be provided in writing from time to time by such
party:

        To the Advisor:             Dresdner RCM Global Investors LLC
                                    4 Embarcadero - Suite 2900
                                    San Francisco, California 94111
                                    Attention:
                                    Telecopier:  (415) 954-5320

        To the Trustee:             State Street Bank and Trust Company
                                    Batterymarch Park III
                                    Three Pine Hill Drive
                                    Quincy, Massachusetts 02169
                                    Attention: ABRA Division Head

        If by mail to:              State Street Bank and Trust Company
                                    Post Office Box 1389
                                    Boston, Massachusetts 02104
                                    Attention: ABRA Division Head

               18.  Oral Communications. Oral communications between the parties
                    -------------------
to this Agreement shall be effective hereunder only to the extent specifically
authorized herein. By its execution of this Agreement, each of the parties
hereto acknowledges that the other party may record any such oral communications
and consents to any such recording. All oral communications shall be confirmed
in writing, except that if an oral communication is recorded such recording
shall be controlling and no written confirmation shall be required.

               19.  Authority. The parties to this Agreement represent,
                    ---------
respectively, that they have duly authorized the execution, delivery and
performance of this Agreement and that neither such execution and delivery nor
the performance of their obligations hereunder conflict with or violate any
provision of law, rule or regulation, or any instrument to which either is a
party or to which any of their respective properties are subject and that this
Agreement is a valid and binding obligation.

               20.  Authorized Representatives of the Advisor. The Advisor from
                    -----------------------------------------
time to time shall by written notice certify to the Trustee the name of the
person or persons
<PAGE>

                                                                              14

authorized to act on behalf of the Advisor. Any person so certified shall be
deemed to be the authorized representative of the Advisor. The Advisor shall
give written notice to the Trustee when any person so certified ceases to have
the authority to act on behalf of the Advisor, but such revocation of authority
shall not be valid until the notice is received by the Trustee. The Advisor will
notify the Trustee in writing of any significant changes in the officers of the
Advisor and any changes in the personnel of the Advisor responsible for
providing investment advice with respect to the assets of the Subaccount within
twenty (20) business days after such change.

               IN WITNESS WHEREOF, the parties have executed this Agreement
effective May 31, 2000.

                                            STATE STREET BANK AND TRUST
                                             COMPANY

Attest: __________                          By_________________________
                                                  Name:
                                                  Title:

                                            DRESDNER RCM GLOBAL INVESTORS LLC

Attest: __________                          By_________________________
                                                  Name:
                                                  Title:
<PAGE>

                                                                              15

                                  APPENDIX A
                                  ----------

                           Assets in the Subaccount
                           ------------------------

               The assets in Subaccount shall consist of the following assets:

               (a)    Fifty percent of all assets held in the Fund on May 31,
2000; and

               (b)    Fifty percent of all amounts subsequently contributed or
transferred to the Fund; and

               (c)    All interest, income and gains attributable to such
amounts; minus

               (d)    All losses attributable to the amounts described in
clauses (a) through (c) above; minus

               (e)    Fifty percent of all amounts withdrawn or transferred from
the Fund (not including amounts withdrawn to pay fees and expenses); minus

               (f)    A pro rata portion of the fees and expenses for the Fund
(except for the fees and expenses chargeable directly for the advisory services,
management, administration, custody and accounting for the Subaccount and any
other subaccounts of the Fund); minus

               (g)    The amounts withdrawn to pay the fees and expenses
chargeable directly for the advisory services, management, administration,
custody and accounting for the Subaccount.
<PAGE>

                                                                              16

                                  APPENDIX C
                                  ----------

               Additional Investment Objectives and Restrictions
               -------------------------------------------------

           The Investment Advisor shall not recommend an investment:

               (i)   if such investment, at the time of purchase, would cause
                     more than 5% of the assets of the Subaccount to be invested
                     in warrants generally, or more than 2% of the assets of the
                     Subaccount to be invested in warrants not listed on a
                     nationally recognized United States securities exchange;

               (ii)  if such investment, at the time of purchase, at the time
                     would cause more than 10% of the assets of the Subaccount
                     to be invested in illiquid securities, including repurchase
                     agreements with maturities in excess of seven days or
                     portfolio securities that are not readily marketable;

               (iii) in any industry, if such investment, at the time of
                     purchase, would cause more than 25% of the assets of the
                     Subaccount to be invested in such industry; or

               (iv)  in securities of an issuer if such investment, at the time
                     of purchase, would cause more than 5% of the assets of the
                     Subaccount to be invested in the securities of such issuer.
<PAGE>

                                                                              17

                                  APPENDIX D
                                  ----------

                              Brokerage Practices
                              -------------------

               The Investment Advisor has provided the Trustee with a copy of
Part II of the Form ADV most recently filed by the Investment Advisor with the
Securities and Exchange Commission, in which form the general brokerage
practices of the Investment Advisor are described. The Investment Advisor will
from time to time provide the Trustee with amendments to such form, in
accordance with applicable law.
<PAGE>

                                                                              18

                                  APPENDIX E
                                  ----------

                                 Advisor Fees
                                 ------------

               For its services rendered as investment advisor under the
Agreement, the Investment Advisor will be compensated at the annual rates set
forth below, based on the aggregate value of the assets in the Subaccount. Such
compensation shall be calculated and accrued on a daily basis and paid monthly
from the assets of the Subaccount.

          Value of Assets in Subaccount               Rate
          -----------------------------               ----
          First $20 Million                           .75%
          Next $20 Million                            .60%
          Next $20 Million                            .50%
          Next $40 Million                            .45%
          Over $100 Million                           .40%

provided, however, that for so long as the Advisor serves as advisor to both the
Growth Equity Fund and the Fund, the fee payable to the Advisor for services
rendered to the Fund shall be calculated using the schedule above for the Fund
commencing at the tier determined by the aggregate value of the assets in the
Subaccount and in the subaccount of the Growth Equity Fund for which Advisor
serves as the advisor.
<PAGE>

                                                                              19

                                  APPENDIX F
                                  ----------

I.      Operational Procedures Between the Trustee and the Advisor
        ----------------------------------------------------------

        A.    It is understood and agreed that the Trustee:

              1.    holds title to all of the assets of the Subaccount;

              2.    is responsible to assure that investments made for the
                    Subaccount meet applicable requirements and limitations;

              3.    is required to value such assets; and

              4.    will maintain the proper accounting records for the
                    Subaccount.

        B.    Cash.

              1.    The Trustee will communicate daily to the Advisor by 12:00
                    noon (Eastern Time) the cash available for investment in the
                    Subaccount, which information will be based on the
                    procedures set forth below.

              2.    Extraordinary cash flow requirements - In the event the
                    Trustee becomes aware of facts that will require the
                    withdrawal of an extraordinary amount of cash from the
                    Subaccount under the Plans, the Trustee will promptly
                    communicate to the Advisor such facts, including the amount
                    and date of such cash withdrawal.

        C.    The Advisor will communicate to the Trustee purchases and sales of
investments in the Subaccount as follows:

              1.    Common Stock and Long-Term Debt Securities.

              (a)   The Advisor will communicate daily to the Trustee no later
                    than 9:00 p.m. (Eastern Time) on the trade date all purchase
                    and sale transactions for the Subaccount. Each daily report
                    will indicate separately number of purchases and sales and
                    total trades. On days when no trades are recommended the
                    Advisor will issue a negative trade report. Such
                    communication will include the following information for
                    each trade:

                    .    Buy or sell

                    .    Trade date (if as of trade)

                    .    Settlement date

                    .    Name of broker or dealer or other party
<PAGE>

                                                                              20

                    .    Name of issue

                    .    CUSIP number/Sedol

                    .    Number of shares (or principal amount in local currency
                         if debt security)

                    .    Price per share (or principal amount if debt security)
                         in local currency

                    .    Price per share (or per $100 (or local equivalent) of
                         debt security) in local currency

                    .    (For debt) Interest purchased or sold

                    .    Agreed upon commission per share (or per other unit of
                         interest)

                    .    Total commission o Exchange on which transaction is
                         executed (or transacted over the counter)

                    .    Net amount

                    .    Such other information as may be required by the
                         Trustee

                    .    Clearing broker ("same" if same as trading broker)

                    .    SIC Code

               (b)  For DTC eligible securities and when applicable, the Trustee
                    shall confirm to DTC, as soon after trade date as possible,
                    through an acknowledgement procedure acceptable to DTC and
                    the Trustee, all trades which accurately reflect the trades
                    entered into for the Subaccount as reported to the Trustee
                    by the Advisor.

               (c)  The Advisor will arrange for a copy of each confirmation to
                    be sent to the Trustee or an affiliate as designated by the
                    Trustee.

           2.  Short-Term Debt Securities

               (a)  As of 10:30 am (Eastern Time) on each business day, the
                    Trustee will invest available cash in the Subaccount by
                    purchasing and selling units for the Subaccount in the Yield
                    Enhanced Short Term Investment Fund ("YES"), unless the
                    Advisor notified the Trustee prior to such time that the
                    Advisor recommends investment in accordance with paragraph
                    b. The Trustee shall confirm daily the
<PAGE>

                                                                              21

                    number of units purchased and sold on the preceding day, as
                    well as the YES unit value at the close of business on the
                    preceding day.

               (b)  Alternatively, the Advisor may notify the Trustee in advance
                    in writing that the Advisor recommends that the Trustee
                    invest available cash in the Subaccount.

                    (i)  In such event, the Advisor will communicate daily to
                         the Trustee or an affiliate no later than 10:00 a.m.
                         (Eastern Time) all recommended purchase and sale
                         transactions in short-term securities to be made for
                         the Subaccount. Such communication will include the
                         following information for each trade:

                    .    Buy or sell

                    .    Trade date (if as of trade)

                    .    Settlement date

                    .    CUSIP number/Sedol

                    .    Name of broker or dealer or other party, if other than
                         the issuing company

                    .    Name of issue

                    .    Current par value in local currency

                    .    Cost of acquisition or proceeds of sale

                    .    Last coupon date

                    .    Discount or interest rates

                    .    Maturity date of purchase

                    .    Collateral

                    .    Currency

                    .    Such other information as may be required by the
                         Trustee

                    (ii) The Advisor also will direct each executing broker or
                         dealer or other party or the issuing companies to
                         deliver or receive the securities against payment for
                         the account of the Trustee.
<PAGE>

                                                                              22

                    (iii)  The Trustee will convey to the Advisor no later than
                           the next business day a report showing in detail the
                           previous day's transactions based on the procedures
                           set forth in Section II below. The Advisor will (a)
                           promptly check the data in such report and (b)
                           immediately advise the Trustee by telephone (followed
                           by a written confirmation within two days) of any
                           variances.

                    (iv)   If such investments are held to maturity the Trustee
                           will redeem such securities on the maturity date and
                           make the funds available to the Advisor for
                           reinvestment.

                    (v)    The Advisor will also direct each broker or dealer or
                           party or issuing company to convey a copy of each
                           confirmation to the Trustee.

II.     Valuation and Accounting of the Subaccount
        ------------------------------------------

        A.     The assets of the Subaccount are valued as provided in the
               current prospectus included in the registration statement filed
               with the Securities and Exchange Commission.

        B.     Stocks and long-term debt security transactions will be recorded
               not later than the business day following the trade date.
               Dividend income will be recorded on the ex-dividend date.
               Interest income will be accrued daily.

III.    Communications to Investment Advisor
        ------------------------------------

        A.     State Street will send the following reports on a monthly basis
               to the Advisor by overnight mail so that they are received no
               later than the tenth business day of the following month:

               .    Statement of Investments showing account holdings as of the
                    last day of the month.

               .    Monthly Summary of Account Activity Report (Trials).

               .    Daily Purchase Activity Report (Purchases and Sales Report).

               .    Daily Sales Activity Report (Purchases and Sales Report).

               .    Actual Dividend Receipts Reports (Dividend and Interest
                    Report).

               .    Summary of Accounting Journals Report - This report displays
                    a daily summary of client contributions, client withdrawals
                    and expenses charged to the account (Cash Summary Report).
<PAGE>

                                                                              23

               .    Stock Dividend/Stock Split Schedule Report. Mergers,
                    spinoffs, exchanges, etc. will also be indicted on this
                    report as they occur.

               .    YES Report. (This report will be distributed only if the
                    Subaccount participates in YES for short term investments.)

        B.     State Street will send the Advisor the existing broker list
               within two business days prior to the end of each month to
               determine whether any charges will be made under Section 4(c) of
               the Agreement.

IV.     Notices
        -------

        The methods of communication and the persons to whom the information
        required by this Appendix F will be given, will be set forth in writing
                         ----------
        between the Trustee and the Advisor from time to time as required by the
        circumstances to carry out the intent and purposes of the Agreement and
        this Appendix F.
             ----------

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