UBS RELATIONSHIP FUNDS
SUB-ADVISORY AGREEMENT
AGREEMENT, made by and between UBS GLOBAL ASSET MANAGEMENT (AMERICAS) INC.,
a Delaware corporation (the "Investment Manager"), and UBS GLOBAL ASSET
MANAGEMENT (NEW YORK) INC., a New York corporation (the "Sub-Adviser).
WITNESSETH:
WHEREAS, UBS RELATIONSHIP FUNDS, a Delaware business trust (the "Trust"),
has been organized and operates as an investment company registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), and engages in the
business of investing and reinvesting its assets in securities; and
WHEREAS, the Investment Manager and the Sub-Adviser are registered
investment advisers under the Investment Advisers Act of 1940, as amended, and
engage in the business of providing investment management services; and
WHEREAS, the Investment Manager and the Trust have entered into an
agreement dated as of October 30, 2000 (the "Investment Management Agreement")
whereby the Investment Manager provides investment advisory services to the
Trust on behalf of each of its series (the "Series"); and
WHEREAS, the Investment Management Agreement permits the Investment Manager
to hire one or more sub-advisers to assist the Investment Manager in providing
investment advisory services to the Series:
NOW, THEREFORE, in consideration of the mutual covenants herein contained,
and each of the parties hereto intending to be legally bound, it is agreed as
follows:
1. The Investment Manager hereby employs the Sub-Adviser, subject always to
the Investment Manager's control and supervision, with respect to each Series
listed on Exhibit A to this Agreement, which Exhibit may be amended from time to
time, to manage the investment and reinvestment of that portion of the portfolio
of each Series, as the Investment Manager shall designate from time to time, and
to furnish the Investment Manager with investment recommendations, asset
allocation advice, research and other investment services, subject to the
direction of the Board of Trustees and officers of the Trust for the period and
on the terms hereinafter set forth. The Sub-Adviser hereby accepts such
employment and agrees during such period to render the services and assume the
obligations herein set forth. The Sub-Adviser shall, for all purposes herein, be
deemed to be an independent contractor, and shall, unless otherwise expressly
provided and authorized, have no authority to act for or represent the Trust or
the Series in any way, or in any way be deemed an agent of the Trust or the
Series. The Sub-Adviser shall regularly make decisions as to what securities to
purchase and sell on behalf of the Series, shall
effect the purchase and sale of investments in furtherance of the Series'
objectives and policies by placing transactions through its trading department
or the Investment Manager's trading department, and shall furnish the Board of
Trustees of the Trust with such information and reports regarding the Series'
investments as the Investment Manager deems appropriate or as the Trustees of
the Trust may reasonably request. The Sub-Adviser shall act in conformity with
the Agreement and Declaration of Trust and By-Laws of the Trust, and the Series'
prospectus and with the instructions and directions of the Investment Manager
and of the Board of Trustees of the Trust, and shall conform to and comply with
the requirements of the 1940 Act, the Internal Revenue Code of 1986, as amended,
and all other applicable federal and state laws and regulations consistent with
the provisions of Section 15(c) of the 1940 Act.
2. (a) Subject to the primary objective of obtaining the best available
prices and execution, the Sub-Adviser will place orders for the purchase and
sale of portfolio securities with such broker/dealers who provide statistical,
factual and financial information and services to the Trust, to the Investment
Manager, to the Sub-Adviser or to any other fund for which the Investment
Manager or Sub-Adviser provides investment advisory services and/or with
broker/dealers who sell shares of the Series or who sell shares of any other
fund for which the Investment Manager or Sub-Adviser provides investment
advisory services. Broker/dealers who sell shares of the funds for which the
Investment Manager or Sub-Adviser provides advisory services shall only receive
orders for the purchase or sale of portfolio securities to the extent that the
placing of such orders is in compliance with the Rules of the Securities and
Exchange Commission ("SEC") and the National Association of Securities Dealers,
Inc.
(b) Notwithstanding the provisions of subparagraph (a) above and
subject to such policies and procedures as may be adopted by the Board of
Trustees and officers of the Trust, the Sub-Adviser may ask the Trust, on behalf
of a Series, and the Trust, on behalf of a Series, may agree to pay a member of
an exchange, broker or dealer an amount of commission for effecting a securities
transaction in excess of the amount of commission another member of an exchange,
broker or dealer would have charged for effecting that transaction, in such
instances where the Trust and the Sub-Adviser have determined in good faith that
such amount of commission was reasonable in relation to the value of the
brokerage and research services provided by such member, broker or dealer,
viewed in terms of either that particular transaction or the Sub-Adviser's
overall responsibilities with respect to the Series and to other funds and other
advisory accounts for which the Investment Manager or the Sub-Adviser exercises
investment discretion.
3. No compensation shall be paid to the Sub-Adviser for the services to be
provided under this Agreement.
4. The services to be rendered by the Sub-Adviser to the Series under the
provisions of this Agreement are not to be deemed to be exclusive, and the
Sub-Adviser shall be free to render similar or different services to others so
long as its ability to render the services provided for in this Agreement shall
not be impaired thereby.
5. The Sub-Adviser, its directors, officers, employees, agents and
shareholders may engage in other businesses, may render investment advisory
services to other investment companies, or to any other corporation,
association, firm or individual, and may render
underwriting services to the Series or to any other investment company,
corporation, association, firm or individual.
6. In the absence of willful misfeasance, bad faith, gross negligence, or a
reckless disregard of the performance of duties of the Sub-Adviser to the
Series, the Sub-Adviser shall not be subject to liability to the Series or to
any shareholder of the Series for any action or omission in the course of, or
connected with, rendering services hereunder or for any losses that may be
sustained in the purchase, holding or sale of any security, or otherwise.
7. (a) This Agreement shall be executed and become effective as of the date
written below. It shall continue in effect for a period of two years and may be
renewed thereafter as to a Series only so long as such renewal and continuance
is specifically approved at least annually by the Board of Trustees of the Trust
or by vote of a majority of the outstanding voting securities of the particular
Series and only if the terms and the renewal hereof have been approved by the
vote of a majority of the Trustees of the Trust who are not parties hereto or
interested persons of any such party ("Independent Trustees"), cast in person at
a meeting called for the purpose of voting on such approval.
(b) No amendment to this Agreement shall be effective as to a
particular Series unless approved by: (i) a majority of the Trustees; and (ii) a
majority of the outstanding voting securities of the Series. Notwithstanding the
foregoing, this Agreement may be amended as to a particular Series without the
approval of a majority of the outstanding voting securities of the Series if the
amendment relates solely to a change that is permitted or not prohibited under
federal law, rule, regulation or SEC staff interpretation thereof to be made
without shareholder approval.
Notwithstanding the foregoing, this Agreement may be terminated as to a
Series by the Investment Manager or the Trust at any time, without the payment
of a penalty, on not more than sixty days' written notice to the Sub-Adviser, of
the Investment Manager's or the Trust's intention to do so, in the case of the
Trust pursuant to action by the Board of Trustees of the Trust or pursuant to
vote of a majority of the outstanding voting securities of a particular Series.
The Sub-Adviser may terminate this Agreement at any time, without the payment of
a penalty, on not more than sixty days' written notice to the Investment Manager
and the Trust of its intention to do so. Upon termination of this Agreement, the
obligations of all the parties hereunder shall cease and terminate as of the
date of such termination, except for any obligation to respond for a breach of
this Agreement committed prior to such termination. This Agreement shall
automatically terminate in the event of its assignment. This Agreement shall
automatically terminate upon the termination of the Investment Management
Agreement.
8. This Agreement shall extend to and bind the heirs, executors,
administrators and successors of the parties hereto.
9. For the purposes of this Agreement, the terms "vote of a majority of the
outstanding voting securities;" "interested person;" and "assignment" shall have
the respective meanings set forth in the 1940 Act.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement by
having it signed by their duly authorized officers as of the 30th day of
October, 2000 as amended and restated as of August 19, 2002.
UBS GLOBAL ASSET MANAGEMENT
(AMERICAS) INC.
Attest: /s/ Xxxx Xxxxx By: /s/ Xxx X. Doberman
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Name: Xxxx Xxxxx Name: Xxx X. Doberman
Title: Director Title: Assistant Secretary
UBS GLOBAL ASSET MANAGEMENT
(AMERICAS) INC.
Attest: /s/ Xxxx Xxxxx By: /s/ Xxxxxx X. Xxxxxxxxx
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Name: Xxxx Xxxxx Name: Xxxxxx X. Xxxxxxxxx
Title: Director Title: Executive Director and
Chief Financial Officer
UBS GLOBAL ASSET MANAGEMENT
(NEW YORK), INC.
Attest: /s/ Xxxx Xxxxx By: /s/ Xxx X. Doberman
------------------------------- -------------------------------
Name: Xxxx Xxxxx Name: Xxx X. Doberman
Title: Director Title: Assistant Secretary
Agreed to and accepted as of the day and year first above written:
UBS RELATIONSHIP FUNDS
Attest: /s/ Xxxx Xxxxx By: /s/ Xxxxx X. Xxxxxxxxxx
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Name: Xxxx Xxxxx Name: Xxxxx X. Xxxxxxxxxx
Title: Director Title: Vice President and
Assistant Secretary
EXHIBIT A
Series Subject to this Agreement
UBS High Yield Relationship Fund
UBS Defensive High Yield Relationship Fund
UBS Opportunistic High Yield Relationship Fund
