Exhibit (d)(14)(i)
AMENDED AND RESTATED
INVESTMENT ADVISORY AGREEMENT
AMENDED AND RESTATED AGREEMENT, dated as of July 10, 2002, by and
between The Equitable Life Assurance Society of the United States, a New York
stock life insurance company (the "Manager"), and Xxxxxxx Asset Management
Company, Inc., a Delaware corporation ("Adviser").
WHEREAS, EQ Advisors Trust ("Trust") is registered as an investment
company under the Investment Company Act of 1940, as amended (the "Investment
Company Act");
WHEREAS, the Trust's shareholders are and will be separate accounts
maintained by insurance companies for variable life insurance policies and
variable annuity contracts under which income, gains, and losses, whether or not
realized, from assets allocated to such accounts are, in accordance with such
policies and contracts, credited to or charged against such accounts without
regard to other income, gains, or losses of such insurance companies;
WHEREAS, the Trust is and will continue to be a series fund having two
or more investment portfolios, each with its own investment objectives, policies
and restrictions;
WHEREAS, the Manager is registered as an investment adviser under the
Investment Advisers Act of 1940, as amended ("Advisers Act"), and is the
investment manager to the Trust;
WHEREAS, the Adviser is registered as an investment adviser under the
Advisers Act;
WHEREAS, the Investment Company Act prohibits any person from acting as
an investment adviser to a registered investment company except pursuant to a
written contract; and
WHEREAS, the Board of Trustees of the Trust and the Manager desire that
the Manager retain the Adviser and Xxxxx Capital Management, Inc. ("Xxxxx
Capital") to render investment advisory and other services to the portfolio to
be known as the Xxxxxxx Socially Responsible Portfolio ("Portfolio") in the
manner and on the terms hereinafter set forth.
NOW, THEREFORE, the Manager and the Adviser agree as follows:
1. APPOINTMENT OF ADVISER
The Manager hereby appoints the Adviser to act as investment adviser
for the Portfolio, subject to the supervision and control of the Manager and the
Trustees of the Trust, and in accordance with the terms and conditions of this
Agreement. The Adviser will be an independent contractor and will have no
authority to act for or represent the Trust or the Manager in any way or
otherwise be deemed an agent of the Trust or the Manager except as expressly
authorized in this Agreement or another writing by the Trust, the Manager and
the Adviser.
2. SERVICES TO BE RENDERED BY THE ADVISER TO THE TRUST
A. As investment adviser to the Portfolio, the Adviser will coordinate
the investment and reinvestment of the assets of the Portfolio and the
composition of the assets of the Portfolio, subject always to the supervision
and control of the Manager and the Trustees of
the Trust. The Adviser shall allocate responsibilities for specific tasks
relating to the Portfolio between the Adviser and Xxxxx Capital. The Adviser
will provide the social screening services used in selecting each investment for
the Portfolio and has the authority to deny the purchase by the Portfolio or
cause divestiture of any investments of the Portfolio if such investment, in the
sole opinion of the Adviser, fails to pass the social screens established for
the Portfolio.
B. As part of the services it will provide hereunder, the Adviser
will:
(i) Monitor and continually develop the social investment
criteria of the Portfolio;
(ii) obtain and evaluate pertinent data, and other information
relating to social investing issues affecting the individual companies
or industries, the securities of which are included in the Portfolio or
are under consideration for inclusion in the Portfolio to ensure that
the Portfolio's investments satisfy the social criteria of the
Portfolio;
(iii) coordinate the Adviser's activities with Xxxxx Capital,
relating to Xxxxx Capital's formulation and implementation of a
continuous investment program for the Portfolio;
(iv) keep the Trustees of the Trust and the Manager fully informed
in writing on an ongoing basis of all material facts concerning the
investment and reinvestment of the assets in the Portfolio, the Adviser
and its personnel and operations, make regular and special written
reports of such additional information concerning the same as may
reasonably be requested from time to time by the Manager or the
Trustees of the Trust and attend meetings with the Manager and/or the
Trustees, as reasonably requested, to discuss the foregoing,
(v) provide assistance in determining the fair value of certain
portfolio securities when market quotations are not readily available
for the purpose of calculating the Portfolio's net asset value in
accordance with procedures and methods established by the Trustees of
the Trust;
(vi) provide any and all information, records and supporting
documentation about accounts the Adviser and Xxxxx Capital manage
together or individually, if appropriate, that have investment
objectives, policies, and strategies substantially similar to those
employed by the Adviser and Xxxxx Capital in managing the Portfolio
which may be reasonably necessary, under applicable laws, to allow the
Portfolio or its agent to present information concerning the Adviser's
and Xxxxx Capital's prior performance in the Trust's Prospectus and SAI
(as hereinafter defined) and any permissible reports and materials
prepared by the Portfolio or its agent; and
(vii) cooperate with and provide reasonable assistance to the
Manager, the Trust administrator, the Trust's custodian and foreign
custodians, the Trust's transfer agent and pricing agents and all other
agents and representatives of the Trust and the Manager, keep all such
persons fully informed as to such matters as they may reasonably deem
necessary to the performance of their obligations to the Trust and the
Manager, provide prompt responses to reasonable requests made by such
persons and establish appropriate interfaces with each so as to promote
the efficient exchange of information.
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C. In furnishing services hereunder, the Adviser shall be subject to,
and shall perform in accordance with, the Trust's Agreement and Declaration of
Trust, as the same may be hereafter modified and/or amended from time to time
("Trust Declaration"), the By-Laws of the Trust, as the same may be hereafter
modified and/or amended from time to time ("By-Laws"), the currently effective
Prospectus and Statement of Additional Information of the Trust relating to the
Portfolio filed with the Securities and Exchange Commission ("SEC"), as the same
may be hereafter modified, amended and/or supplemented ("Prospectus and SAI"),
the Investment Company Act, with the requirements applicable to both regulated
investment companies and segregated asset accounts under Subchapters M and L of
the Internal Revenue Code of 1986, as amended, all other applicable state and
federal securities and other laws, all regulations with respect to the
foregoing, the policies and procedures adopted from time to time by the Board of
Trustees of the Trust and the written instructions of the Manager. The Manager
shall provide the Adviser with current copies of the Trust Declaration, By-Laws,
and Prospectus and SAI.
D. The Adviser, at its expense, will furnish: (i) all necessary
facilities and personnel, including salaries, expenses and fees of any personnel
required for it to faithfully perform its duties under this Agreement; and (ii)
administrative facilities, including bookkeeping, clerical personnel and
equipment necessary for the efficient conduct of the investment affairs of the
Portfolio (excluding that necessary for the determination of net asset value and
shareholder accounting services).
E. The Adviser, together with Xxxxx Capital, will select brokers and
dealers to effect all portfolio transactions subject to the conditions set forth
herein. The Adviser, or Xxxxx Capital, will place all necessary orders with
brokers, dealers, or issuers, and will negotiate brokerage commissions, if
applicable. The Adviser is directed at all times to seek to execute brokerage
transactions for the Portfolio in accordance with such policies or practices as
may be established by the Board of Trustees and described in the Trust's
Prospectus and SAI. In placing any orders for the purchase or sale of
investments for the Portfolio, in the name of the Portfolio or its nominees, the
Adviser shall use its best efforts to obtain for the Portfolio the most
favorable price and best execution available, considering all of the
circumstances, and shall maintain records adequate to demonstrate compliance
with this requirement.
F. Subject to the appropriate policies and procedures approved by the
Board of Trustees, the Adviser may, to the extent authorized by Section 28(e) of
the Securities Exchange Act of 1934, cause the Portfolio to pay a broker or
dealer that provides brokerage or research services to the Manager, the Adviser,
Xxxxx Capital and the Portfolio an amount of commission for effecting a
portfolio transaction in excess of the amount of commission another broker or
dealer would have charged for effecting that transaction if the Adviser
determines, in good faith, that such amount of commission is reasonable in
relationship to the value of such brokerage or research services provided viewed
in terms of that particular transaction or the Adviser's or Xxxxx Capital's
overall responsibilities to the Portfolio or its or their other advisory
clients. To the extent authorized by Section 28(e) and the Trust's Board of
Trustees, the Adviser shall not be deemed to have acted unlawfully or to have
breached any duty created by this Agreement or otherwise solely by reason of
such action. In addition, subject to seeking the most favorable price and best
execution available, the Manager or the Adviser may also consider sales of
shares of the Trust as a factor in the selection of brokers and dealers.
G. On occasions when the Adviser deems the purchase or sale of a
security to be in the best interest of the Portfolio as well as other clients of
the Adviser, the Adviser to the extent
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permitted by applicable laws and regulations, may, but shall be under no
obligation to, aggregate the securities to be purchased or sold to attempt to
obtain a more favorable price or lower brokerage commissions and efficient
execution. In such event, allocation of the securities so purchased or sold, as
well as the expenses incurred in the transaction, will be made by the Adviser in
the manner the Adviser considers to be the most equitable and consistent with
its fiduciary obligations to the Portfolio and to its other clients.
H. The Adviser will maintain all accounts, books and records with
respect to the Portfolio as are required of an investment adviser of a
registered investment company pursuant to the Investment Company Act and
Advisers Act and the rules thereunder and shall file with the SEC all forms
pursuant to Section 13 of the Securities Exchange Act of 1934, as amended, with
respect to its duties as are set forth herein.
3. COMPENSATION OF ADVISER
The Manager will pay the Adviser for its services as specified in this
Agreement an advisory fee with respect to the Portfolio at the following annual
rate: 0.10% of the average daily net assets of the Portfolio up to and including
$150 million; and 0.125% of the average daily net assets of the Portfolio in
excess of $150 million. The advisory fee due and payable hereunder on account of
any day shall be calculated by multiplying the net asset value of the Portfolio
at the close of the immediately preceding business day (as defined in the
Prospectus and SAI) by the applicable annual rate specified above and dividing
the result by the number of days in the year. The advisory fee due and payable
hereunder on account of the days in any calendar month shall be due and payable
within ten (10) business days following the end of such calendar month.
4. LIABILITY AND INDEMNIFICATION
(a) Except as may otherwise be provided by the Investment Company Act
or any other federal securities law, the Adviser shall not be liable for any
losses, claims, damages, liabilities or litigation (including legal and other
expenses) incurred or suffered by the Manager or the Trust as a result of any
error of judgment or mistake of law by the Adviser with respect to the
Portfolio, except that nothing in this Agreement shall operate or purport to
operate in any way to exculpate, waive or limit the liability of the Adviser
for, and the Adviser shall indemnify and hold harmless the Trust, the Manager,
all affiliated persons thereof (within the meaning of Section 2(a)(3) of the
Investment Company Act) and all controlling persons (as described in Section 15
of the Securities Act of 1933, as amended ("1933 Act")) (collectively, the
"Manager Indemnitees") against any and all losses, claims, damages, liabilities
or litigation (including reasonable legal and other expenses) to which any of
the Manager Indemnities may become subject under the 1933 Act, the Investment
Company Act, the Advisers Act, or under any other statute, at common law or
otherwise arising out of or based on (a) any willful misconduct, bad faith,
reckless disregard or gross negligence of the Adviser in the performance of any
of its duties or obligations hereunder or (b) any untrue statement of a material
fact contained in the Prospectus and SAI, proxy materials, reports,
advertisements, sales literature, or other materials pertaining to the Portfolio
or the omission to state therein a material fact known to the Adviser which was
required to be stated therein or necessary to make the statements therein not
misleading, if such statement or omission was made in reliance upon information
furnished to the Manager or the Trust by an Adviser Indemnitee (as defined
below) for use therein.
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(b) Except as may otherwise be provided by the Investment Company Act
or any other federal securities law, the Manager and the Trust shall not be
liable for any losses, claims, damages, liabilities or litigation (including
legal and other expenses) incurred or suffered by the Adviser as a result of any
error of judgment or mistake of law by the Manager with respect to the
Portfolio, except that nothing in this Agreement shall operate or purport to
operate in any way to exculpate, waive or limit the liability of the Manager
for, and the Manager shall indemnify and hold harmless the Adviser, all
affiliated persons thereof (within the meaning of Section 2(a)(3) of the
Investment Company Act) and all controlling persons (as described in Section 15
of the 1933 Act) (collectively, the "Adviser Indemnitees") against any and all
losses, claims, damages, liabilities or litigation (including reasonable legal
and other expenses) to which any of the Adviser Indemnities may become subject
under the 1933 Act, the Investment Company Act, the Advisers Act, or under any
other statute, at common law or otherwise arising out of or based on (a) any
willful misconduct, bad faith, reckless disregard or gross negligence of the
Manager in the performance of any of its duties or obligations hereunder or (b)
any untrue statement of a material fact contained in the Prospectus and SAI,
proxy materials, reports, advertisements, sales literature, or other materials
pertaining to the Portfolio or the omission to state therein a material fact
known to the Manager which was required to be stated therein or necessary to
make the statements therein not misleading, unless such statement or omission
was made in reliance upon information furnished to the Manager or the Trust by
an Adviser Indemnitee for use therein.
5. NON-EXCLUSIVITY
The services of the Adviser to the Portfolio and the Trust are not to
be deemed to be exclusive, and the Adviser shall be free to render investment
advisory or other services to others (including other investment companies) and
to engage in other activities. It is understood and agreed that the directors,
officers, and employees of the Adviser are not prohibited from engaging in any
other business activity or from rendering services to any other person, or from
serving as partners, officers, directors, trustees, or employees of any other
firm or corporation, including other investment companies.
6. SUPPLEMENTAL ARRANGEMENTS
The Adviser may from time to time employ or associate with itself any
person it believes to be particularly fitted to assist it in providing the
services to be performed by the Adviser hereunder, provided that no such person
shall perform any services with respect to the Portfolio which would constitute
an assignment or require a written advisory agreement pursuant to the Investment
Company Act. Any compensation payable to such persons such be the sole
responsibility of the Adviser, and neither the Manager nor the Trust shall have
any obligations with respect thereto.
7. REGULATION
The Adviser shall submit to all regulatory and administrative bodies
having jurisdiction over the services provided pursuant to this Agreement any
information, reports, or other material which any such body by reason of this
Agreement may request or require pursuant to applicable laws and regulations.
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8. RECORDS
The records relating to the services provided under this Agreement
shall be the property of the Trust and shall be under its control; however, the
Trust shall furnish to the Adviser such records and permit it to retain such
records (either in original or in duplicate form) as it shall reasonably require
in order to carry out its duties. In the event of the termination of this
Agreement, such records shall promptly be returned to the Trust by the Adviser
free from any claim or retention of rights therein. The Manager and the Adviser
shall keep confidential any information obtained in connection with its duties
hereunder and disclose such information only if the Trust has authorized such
disclosure or if such disclosure is expressly required or requested by
applicable federal or state regulatory authorities.
9. DURATION OF AGREEMENT
This Agreement shall become effective with respect to the Portfolio on
the later of the date of its execution or the date of the commencement of the
Portfolio. This Agreement will continue in effect for a period more than two
years from the date of its execution only so long as such continuance is
specifically approved at least annually by the Board of Trustees provided that
in such event such continuance shall also be approved by the vote of a majority
of the Trustees who are not "interested persons" (as defined in the Investment
Company Act) ("Independent Trustees") of any party to this Agreement cast in
person at a meeting called for the purpose of voting on such approval.
10. TERMINATION OF AGREEMENT
This Agreement may be terminated at any time, without the payment of
any penalty, by the Board of Trustees, including a majority of the Independent
Trustees, by the vote of a majority of the outstanding voting securities of the
Portfolio, on sixty (60) day's written notice to the Manager and the Adviser, or
by the Manager or Adviser on sixty (60) day's written notice to the Trust and
the other party. This Agreement will automatically terminate, without the
payment of any penalty, (i) in the event of its assignment (as defined in the
Investment Company Act), (ii) in the event the Investment Management Agreement
between the Manager and the Trust is assigned or terminates for any other
reason, or (iii) unless otherwise agreed between the Manager and the Adviser,
and subject to approval of the Board of Trustees of the Trust, in the event that
the Investment Advisory Agreement, dated as of the date hereof, between the
Manager and Xxxxx Capital is terminated for any reason. This Agreement will also
terminate upon written notice to the other party that the other party is in
material breach of this Agreement, unless the other party in material breach of
this Agreement cures such breach to the reasonable satisfaction of the party
alleging the breach within thirty (30) days after written notice.
11. PROVISION OF CERTAIN INFORMATION BY ADVISER
The Adviser will promptly notify the Manager in writing of the
occurrence of any of the following events:
A. the Adviser fails to be registered as an investment adviser under
the Advisers Act or under laws of any jurisdiction in which the Adviser is
required to be registered as an investment adviser in order to perform its
obligations under this Agreement;
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B. the Adviser is served or otherwise receives notice of any action,
suit, proceeding, inquiry, or investigation, at law or in equity, before or by
any court, public board, or body, involving the affairs of the Trust; and/or
C. the chief executive officer or controlling stockholder of the
Adviser or the portfolio manager of the Portfolio changes or there is otherwise
an actual change in control or management of the Adviser.
12. USE OF ADVISER'S NAME
The parties agree that the name "Xxxxxxx Asset Management Company,
Inc.," the names of the Adviser's affiliates within the Xxxxxxx Group of
companies, and any derivative or logo or trademark or service xxxx or trade name
are the valuable property of the Adviser and its affiliates. The Manager and the
Trust shall have the right to use such name(s), derivatives, logos, trademarks
or service marks or trade names only with the prior written approval of the
Adviser, which approval shall not be unreasonably withheld or delayed so long as
this Agreement is in effect. The Adviser hereby consents to the name "Xxxxxxx
Socially Responsible Portfolio" as the designated name of the Portfolio. Upon
termination of this Agreement, the Manager and the Trust shall cease to use such
name(s), derivatives, logos, trademarks or service marks or trade names.
13. AMENDMENTS TO THE AGREEMENT
Except to the extent permitted by the Investment Company Act or the
rules or regulations thereunder or pursuant to any exemptive relief granted by
the SEC, this Agreement may be amended by the parties only if such amendment, if
material, is specifically approved by the vote of a majority of the outstanding
voting securities of the Portfolio (unless such approval is not required by
Section 15 of the Investment Company Act as interpreted by the SEC or its staff)
and by the vote of a majority of the Independent Trustees cast in person at a
meeting called for the purpose of voting on such approval. The required
shareholder approval shall be effective with respect to the Portfolio if a
majority of the outstanding voting securities of the Portfolio vote to approve
the amendment, notwithstanding that the amendment may not have been approved by
a majority of the outstanding voting securities of any other Portfolio affected
by the amendment or all the portfolios of the Trust.
14. ASSIGNMENT
No assignment (as that term is defined in the Investment Company Act)
shall be made by the Adviser without the prior written consent of the Trust and
the Manager. Notwithstanding the foregoing, no assignment shall be deemed to
result from any changes in the directors, officers or employees of the Adviser
except as may be provided to the contrary in the Investment Company Act. The
Adviser agrees that it will notify the Trust and the Manager of any changes in
the directors, officers or employees of the Adviser within a reasonable time
thereafter.
15. ENTIRE AGREEMENT
This Agreement contains the entire understanding and agreement of the
parties with respect to the Portfolio.
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16. HEADINGS
The headings in the sections of this Agreement are inserted for
convenience of reference only and shall not constitute a part hereof.
17. NOTICES
All notices required to be given pursuant to this Agreement shall be
delivered or mailed to the last known business address of each applicable party
in person or by registered mail or a private mail or delivery service providing
the sender with notice of receipt. The specific person to whom notice shall be
provided for each party will be specified in writing to the other party. Notice
shall be deemed given on the date delivered or mailed in accordance with this
paragraph.
18. SEVERABILITY
Should any portion of this Agreement for any reason be held to be void
in law or in equity, the Agreement shall be construed, insofar as is possible,
as if such portion had never been contained herein.
19. GOVERNING LAW
The provisions of this Agreement shall be construed and interpreted in
accordance with the laws of the State of Delaware, or any of the applicable
provisions of the Investment Company Act. To the extent that the laws of the
State of Delaware, or any of the provisions in this Agreement, conflict with
applicable provisions of the Investment Company Act, the latter shall control.
20. INTERPRETATION
Any question of interpretation of any term or provision of this
Agreement having a counterpart in or otherwise derived from a term or provision
of the Investment Company Act shall be resolved by reference to such term or
provision of the Investment Company Act and to interpretations thereof, if any,
by the United States courts or, in the absence of any controlling decision of
any such court, by rules, regulations or orders of the SEC validly issued
pursuant to the Investment Company Act. Specifically, the terms "vote of a
majority of the outstanding voting securities," "interested persons,"
"assignment," and "affiliated persons," as used herein shall have the meanings
assigned to them by Section 2(a) of the Investment Company Act. In addition,
where the effect of a requirement of the Investment Company Act reflected in any
provision of this Agreement is relaxed by a rule, regulation or order of the
SEC, whether of special or of general application, such provision shall be
deemed to incorporate the effect of such rule, regulation or order.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized officers as of the date first mentioned above.
THE EQUITABLE LIFE XXXXXXX ASSET MANAGEMENT
ASSURANCE SOCIETY OF THE COMPANY, INC.
UNITED STATES
By: /s/Xxxxx X. Xxxxx By: /s/Xxxxxxx Xxxxxxxxx
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Xxxxx X. Xxxxx Xxxxxxx Xxxxxxxxx
Executive Vice President Senior Vice President and
General Counsel
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