Exhibit 99.4(u)
BLACKROCK FUNDS(SM)
Addendum No. 2 to the Investment Advisory Agreement
This Addendum dated as of the _____ day of June, 1999 is entered into by
and between BLACKROCK FUNDS(SM), a Massachusetts business trust (the "Fund"),
and BLACKROCK FINANCIAL MANAGEMENT, INC., a Delaware corporation (the
"Adviser").
WHEREAS, the Fund and the Adviser have entered into an Investment Advisory
Agreement dated as of January 10, 1996 (the "Advisory Agreement") pursuant to
which the Fund appointed the Adviser to act as investment adviser to certain
investment portfolios of the Fund;
WHEREAS, Section 1(b) of the Advisory Agreement provides that in the event
the Fund establishes one or more additional investment portfolios with respect
to which it desires to retain the Adviser to act as investment adviser under the
Advisory Agreement, the Fund shall so notify the Adviser in writing and if the
Adviser is willing to render such services it shall so notify the Fund in
writing; and
WHEREAS, pursuant to Section 1(b) of the Advisory Agreement, the Fund has
notified the Adviser that it is establishing Multi-Sector Mortgage Securities
Portfolio IV (the "Portfolio"), and that it desires to retain the Adviser to act
as the investment adviser therefor, and the Adviser has notified the Fund that
it is willing to serve as investment adviser to the Portfolio;
NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby
agree as follows:
1. Appointment. The Trust hereby appoints the Adviser to act as
investment adviser to the Portfolio for the period and on the
terms set forth in the Advisory Agreement. The Adviser hereby
accepts such appointment and agrees to render the services set
forth in the Advisory Agreement with respect to the Portfolio for
the compensation herein provided.
2. Compensation. For the services provided and the expenses assumed
pursuant to the Advisory Agreement, the Fund will pay the
Adviser, and the Adviser will accept as full compensation
therefor from the Fund, a fee, computed daily and payable
monthly, at the annual rate of .25% of the average daily net
assets of the Portfolio.
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3. Capitalized Terms. From and after the date hereof, the term
"Portfolio" as used in the Advisory Agreement shall be deemed to
include the Portfolio.
4. Miscellaneous. Except to the extent supplemented hereby, the
Advisory Agreement shall remain unchanged and in full force and
effect, and is hereby ratified and confirmed in all respects as
supplemented hereby.
5. Release. "BlackRock Funds" and "Trustees of BlackRock Funds"
refer respectively to the trust created and the Trustees, as
trustees but not individually or personally, acting from time to
time under a Declaration of Trust dated December 22, 1988 which
is hereby referred to and a copy of which is on file at the
office of the State Secretary of the Commonwealth of
Massachusetts and at the principal office of the Fund. The
obligations of "BlackRock Funds" entered into in the name or on
behalf thereof by any of the Trustees, officers, representatives
or agents are made not individually, but in such capacities, and
are not binding upon any of the Trustees, shareholders, officers,
representatives or agents of the Fund personally, but bind only
the Trust Property (as defined in the Declaration of Trust), and
all persons dealing with any class of shares of the Fund must
look solely to the Trust Property belonging to such class for the
enforcement of any claims against the Fund.
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IN WITNESS WHEREOF, the parties hereto have caused this Addendum No. 2 to
the Advisory Agreement to be executed by their officers designated below as of
the day and year first above written.
BLACKROCK FUNDS(SM)
By: ________________________________
Name:
Title:
BLACKROCK FINANCIAL MANAGEMENT,
INC.
By: ________________________________
Name:
Title:
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