AMERICAN SKANDIA ADVISOR FUNDS, INC.
SUB-ADVISORY AGREEMENT
THIS AGREEMENT is between American Skandia Investment Services,
Incorporated (the "Investment Manager") and Neuberger&Berman Management
Incorporated (the "Sub-Adviser").
W I T N E S S E T H
WHEREAS, American Skandia Advisor Funds, Inc. (the "Company") is a Maryland
corporation organized with one or more series of shares and is registered as an
open-end management investment company under the Investment Company Act of 1940,
as amended (the "ICA"); and
WHEREAS, the Investment Manager and the Sub-Adviser each is an investment
adviser registered under the Investment Advisers Act of 1940, as amended (the
"Advisers Act"); and
WHEREAS, the Board of Directors of the Company (the "Directors") has
engaged the Investment Manager to act as investment manager for the ASAF
Neuberger&Berman Mid-Cap Value Fund (the "Fund"), one series of the Company,
under the terms of a management agreement, dated August 19, 1998, with the
Company (the "Management Agreement"); and
WHEREAS, the Investment Manager, acting pursuant to the Management
Agreement, wishes to engage the Sub-Adviser, and the Directors have approved the
engagement of the Sub-Adviser, to provide investment advice and other investment
services for the Fund set forth below.
NOW, THEREFORE, the Investment Manager and the Sub-Adviser agree as
follows:
1. Investment Services. The Sub-Adviser will formulate and implement a
continuous investment program for the Fund conforming to the investment
objective, investment policies and restrictions of the Fund as set forth in the
Prospectus and Statement of Additional Information of the Company as in effect
from time to time (together, the "Registration Statement"), the Articles of
Incorporation and By-laws of the Company, and any investment guidelines or other
instructions received by the Sub-Adviser in writing from the Investment Manager
from time to time. Any amendments to the foregoing documents will not be deemed
effective with respect to the Sub-Adviser until the Sub-Adviser's receipt
thereof. The appropriate officers and employees of the Sub-Adviser will be
available to consult with the Investment Manager, the Company and the Directors
at reasonable times and upon reasonable notice concerning the business of the
Fund, including valuations of securities which are not registered for public
sale, not traded on any securities market or otherwise may be deemed illiquid
for purposes of the ICA; provided it is understood that the Sub-Adviser is not
responsible for daily pricing of the Fund's assets.
Subject to the supervision and control of the Investment Manager, which in
turn is subject to the supervision and control of the Directors, the Sub-Adviser
in its discretion will determine which issuers and securities will be purchased,
held, sold or exchanged by the Fund or otherwise represented in the Fund's
investment portfolio from time to time and, subject to the provisions of
paragraph 3 of this Agreement, will open accounts and place orders with, and
give instructions to brokers, dealers and others for all such transactions and
cause such transactions to be executed. Custody of the Fund will be maintained
by a custodian bank (the "Custodian") and the Investment Manager will authorize
the Custodian to honor orders and instructions by employees of the Sub-Adviser
designated by the Sub-Adviser to settle transactions in respect of the Fund. No
assets may be withdrawn from the Fund other than for settlement of transactions
on behalf of the Fund except upon the written authorization of appropriate
officers of the Company who shall have been certified as such by proper
authorities of the Company prior to the withdrawal.
The Sub-Adviser will not be responsible for the provision of
administrative, bookkeeping or accounting services to the Fund except as
specifically provided herein, as required by the ICA or the Advisers Act or as
may be necessary for the Sub-Adviser to supply to the Investment Manager, the
Fund or the Fund's shareholders the information required to be provided by the
Sub-Adviser hereunder. Any records maintained hereunder shall be the property of
the Fund and surrendered promptly upon request.
In furnishing the services under this Agreement, the Sub-Adviser will use
its best efforts to comply with and use its best efforts to enable the Fund to
conform to the requirements of: (i) the ICA and the regulations promulgated
thereunder; (ii) Sections 851(b)(2) and (3) of the Internal Revenue Code,
applicable to the Fund, and the regulations promulgated thereunder; (iii) other
applicable provisions of state or federal law; (iv) the Articles of
Incorporation and By-laws of the Company; (v) policies and determinations of the
Company and the Investment Manager provided to the Sub-Adviser in writing; (vi)
the fundamental and non-fundamental investment policies and restrictions
applicable to the Fund, as set out in the Registration Statement of the Company
in effect, or as such investment policies and restrictions from time to time may
be amended by the Fund's shareholders or the Directors and communicated to the
Sub-Adviser in writing; (vii) the Registration Statement, as amended from time
to time provided that such amendments are furnished to the Sub-adviser; and
(viii) investment guidelines or other instructions received in writing from the
Investment Manager. Notwithstanding the foregoing, the Sub-Adviser shall have no
responsibility to monitor compliance with limitations or restrictions for which
information from the Investment Manager or its authorized agents is required to
enable the Sub-Adviser to monitor compliance with such limitations or
restrictions unless such information is provided to the Sub-adviser in writing.
The Sub-Adviser shall supervise and monitor the activities of its
representatives, personnel and agents in connection with the investment program
of the Fund. The Investment Manager acknowledges to the Sub-Adviser that the
Investment Manager is also responsible to the Company for monitoring compliance
with the foregoing requirements, it being understood that such acknowledgement
shall in no way diminish the Sub-Adviser's responsibilities under this
provision.
Nothing in this Agreement shall be implied to prevent the Investment
Manager from engaging other sub-advisers to provide investment advice and other
services to the Fund or to series or portfolios of the Company for which the
Sub-Adviser does not provide such services, or to prevent the Investment Manager
from providing such services itself in relation to the Fund or such other series
or portfolios.
The Sub-Adviser shall be responsible for the preparation and filing of
Schedule 13G and Form 13F on behalf of the Fund. The Sub-Adviser shall not be
responsible for the preparation or filing of any other reports required of the
Fund by any governmental or regulatory agency, except as expressly agreed in
writing.
2. Investment Advisory Facilities. The Sub-Adviser, at its expense, will
furnish all necessary investment facilities, including salaries of personnel,
required for it to execute its duties hereunder.
3. Execution of Fund Transactions. In connection with the investment and
reinvestment of the assets of the Fund, the Sub-Adviser is authorized to open
brokerage accounts for the Fund and is responsible for the selection of
broker-dealers to execute purchase and sale transactions for the Fund in
conformity with the policy regarding brokerage as set forth in the Registration
Statement, or as the Directors may determine from time to time, as well as the
negotiation of brokerage commission rates with such executing broker-dealers.
With respect to brokerage, the Sub-Adviser, in selecting broker-dealers and
negotiating brokerage commission rates, will take all relevant factors into
consideration, including, but not limited to: the best price available; the
reliability, integrity and financial condition of the broker-dealer; the size of
and difficulty in executing the order; and the value of the expected
contribution of the broker-dealer to the investment performance of the Fund on a
continuing basis. Subject to such policies and procedures as the Directors may
determine, the Sub-Adviser shall have discretion to effect investment
transactions for the Fund through broker-dealers (including, to the extent
permissible under applicable law, broker-dealers affiliated with the
Sub-Adviser) qualified to obtain best execution of such transactions who provide
brokerage and/or research services, as such services are defined in section
28(e) of the Securities Exchange Act of 1934, as amended (the "1934 Act"), and
to cause the Fund to pay any such broker-dealers an amount of commission for
effecting a portfolio investment transaction in excess of the amount of
commission another broker-dealer would have charged for effecting that
transaction, if the Sub-Adviser determines in good faith that such amount of
commission is reasonable in relation to the value of the brokerage or research
services provided by such broker-dealer, viewed in terms of either that
particular investment transaction or the Sub-Adviser's overall responsibilities
with respect to the Fund and other accounts as to which the Sub-Adviser
exercises investment discretion (as such term is defined in section 3(a)(35) of
the 1934 Act). Allocation of orders placed by the Sub-Adviser on behalf of the
Fund to such broker-dealers shall be in such amounts and proportions as the
Sub-Adviser shall determine in good faith in conformity with its
responsibilities under applicable laws, rules and regulations. The Sub-Adviser
will submit reports on such allocations to the Investment Manager regularly as
reasonably requested by the Investment Manager, in such form as may be mutually
agreed to by the parties hereto, indicating the broker-dealers to whom such
allocations have been made and the basis therefor.
Subject to the foregoing provisions of this paragraph 3, the Sub-Adviser
may also consider sales of shares in the Fund and recommendations by the
Investment Manager in the selection of broker-dealers to effect the Fund's
investment transactions. Notwithstanding the above, nothing shall require the
Sub-Adviser to use a broker-dealer which provides research services or to use a
particular broker-dealer which the Investment Manager has recommended.
4. Reports by the Sub-Adviser. The Sub-Adviser shall furnish the Investment
Manager monthly, quarterly and annual reports, in such form as may be mutually
agreed to by the parties hereto, concerning transactions and performance of the
Fund, including information required in the Registration Statement or
information necessary for the Investment Manager to review the Fund or discuss
the management of it. The Sub-Adviser shall permit the books and records
maintained by it with respect to the Fund to be inspected and audited by the
Company, the Investment Manager or their respective agents at all reasonable
times during normal business hours upon reasonable notice. The Sub-Adviser shall
immediately notify both the Investment Manager and the Company of any legal
process served upon it in connection with its activities hereunder, including
any legal process served upon it on behalf of the Investment Manager, the Fund
or the Company. The Sub-Adviser shall promptly notify the Investment Manager of
any changes in any information regarding the Sub-Adviser or the investment
program conducted by the Sub-Adviser for the Fund as described in the
Registration Statement or which otherwise relates directly or indirectly to the
Sub-Adviser's activities in connection with the Fund (such disclosure and
information being hereinafter collectively referred to as "Sub-Adviser
Information").
5. Compensation of the Sub-Adviser. The amount of the compensation to the
Sub-Adviser is computed daily at an annual rate. The fee shall be payable
monthly in arrears, based on the average daily net assets of the Fund for each
month, at the annual rate set forth in Exhibit A to this Agreement.
In computing the fee to be paid to the Sub-Adviser, the net asset value of
the Fund shall be valued as set forth in the Registration Statement. If this
Agreement is terminated, the payment described herein shall be prorated to the
date of termination.
The Investment Manager and the Sub-Adviser shall not be considered as
partners or participants in a joint venture. The Sub-Adviser will pay its own
expenses for the services to be provided pursuant to this Agreement and will not
be obligated to pay any expenses of the Investment Manager, the Fund or the
Company. Except as otherwise specifically provided herein, the Investment
Manager, the Fund and the Company will not be obligated to pay any expenses of
the Sub-Adviser.
6. Delivery of Documents to the Sub-Adviser. The Investment Manager has
furnished the Sub-Adviser with true, correct and complete copies of each of the
following documents:
(a) The Articles of Incorporation of the Company, as in effect on the date
hereof;
(b) The By-laws of the Company, as in effect on the date hereof;
(c) The resolutions of the Directors approving the engagement of the
Sub-Adviser as portfolio manager of the Fund and approving the form of this
Agreement;
(d) The resolutions of the Directors selecting the Investment Manager as
investment manager to the Fund and approving the form of the Management
Agreement;
(e) The Management Agreement;
(f) The Code of Ethics of the Company and of the Investment Manager, as in
effect on the date hereof;
(g) The Registration Statement of the Company;
(h) The Investment Manager's most recent balance sheet; and
(i) A list of companies the securities of which are not to be bought or
sold for the Fund.
The Investment Manager will furnish the Sub-Adviser from time to time with
copies, properly certified or otherwise authenticated, of all amendments of or
supplements to the foregoing, if any. Such amendments or supplements as to items
(a) through (h) above will be provided within 30 days of the time such materials
become available to the Investment Manager. Such amendments or supplements as to
item (i) above will be provided not later than the end of the business day next
following the date such amendments or supplements become known to the Investment
Manager. Any amendments or supplements to the foregoing will not be deemed
effective with respect to the Sub-Adviser until the Sub-Adviser's receipt
thereof. The Investment Manager will provide such additional information as the
Sub-Adviser may reasonably request in connection with the performance of its
duties hereunder.
7. Delivery of Documents to the Investment Manager. The Sub-Adviser has
furnished the Investment Manager with true, correct and complete copies of each
of the following documents:
(a) The Sub-Adviser's Form ADV as filed with the Securities and Exchange
Commission as of the date hereof;
(b) The Sub-Adviser's most recent balance sheet;
(c) Separate lists of persons who the Sub-Adviser wishes to have authorized
to give written and/or oral instructions to Custodians of Company assets for the
Fund; and
(d) The Code of Ethics of the Sub-Adviser, as in effect on the date hereof.
The Sub-Adviser will furnish the Investment Manager from time to time with
copies, properly certified or otherwise authenticated, of all amendments of or
supplements to the foregoing, if any. Such amendments or supplements will be
provided within 30 days of the time such materials become available to the
Sub-Adviser. Any amendments or supplements to the foregoing will not be deemed
effective with respect to the Investment Manager until the Investment Manager's
receipt thereof. The Sub-Adviser will provide additional information as the
Investment Manager may reasonably request in connection with the Sub-Adviser's
performance of its duties under this Agreement.
8. Confidential Treatment. The parties hereto understand that any
information or recommendation supplied by the Sub-Adviser in connection with the
performance of its obligations hereunder is to be regarded as confidential and
for use only by the Investment Manager, the Company or such persons the
Investment Manager may designate in connection with the Fund. The parties also
understand that any information supplied to the Sub-Adviser in connection with
the performance of its obligations hereunder, particularly, but not limited to,
any list of securities which may not be bought or sold for the Fund, is to be
regarded as confidential and for use only by the Sub-Adviser in connection with
its obligation to provide investment advice and other services to the Fund.
9. Representations of the Parties. Each party hereto hereby further
represents and warrants to the other that: (i) it is registered as an investment
adviser under the Advisers Act and is registered or licensed as an investment
adviser under the laws of all jurisdictions in which its activities require it
to be so registered or licensed; and (ii) it will use its reasonable best
efforts to maintain each such registration or license in effect at all times
during the term of this Agreement; and (iii) it will promptly notify the other
if it ceases to be so registered, if its registration is suspended for any
reason, or if it is notified by any regulatory organization or court of
competent jurisdiction that it should show cause why its registration should not
be suspended or terminated; and (iv) it is duly authorized to enter into this
Agreement and to perform its obligations hereunder.
The Sub-Adviser further represents that it has adopted a written Code of
Ethics in compliance with Rule 17j-1(b) of the ICA. The Sub-Adviser shall be
subject to such Code of Ethics, and shall not be subject to any other Code of
Ethics, including the Investment Manager's Code of Ethics, unless specifically
adopted by the Sub-Adviser. The Investment Manager further represents and
warrants to the Sub-Adviser that (i) the appointment of the Sub-Adviser by the
Investment Manager has been duly authorized and (ii) it has acted and will
continue to act in connection with the transactions contemplated hereby, and the
transactions contemplated hereby are, in conformity with the ICA, the Company's
governing documents and other applicable law.
10. Liability. In the absence of willful misfeasance, bad faith, gross
negligence or reckless disregard for its obligations hereunder, the Sub-Adviser
shall not be liable to the Company, the Fund, the Fund's shareholders or the
Investment Manager for any act or omission resulting in any loss suffered by the
Company, the Fund, the Fund's shareholders or the Investment Manager in
connection with any service to be provided herein. The Federal laws impose
responsibilities under certain circumstances on persons who act in good faith,
and therefore, nothing herein shall in any way constitute a waiver or limitation
of any rights which the Company, the Fund or the Investment Manager may have
under applicable law. The Sub-Adviser and the Investment Manager further agree
that the Sub-Adviser shall bear no responsibilities or obligations for any funds
of the Company other than the Fund and any other fund with respect to which it
serves as sub-adviser. The Investment Manager agrees that the Sub-Adviser shall
not be liable for any failure to recommend the purchase or sale of any security
on behalf of the Fund on the basis of any information which might, in the
Sub-Advisor's opinion, constitute a violation of any federal or state laws,
rules or regulations.
11. Other Activities of the Sub-Adviser. The Investment Manager agrees that
the Sub-Adviser and any of its officers or employees, and persons affiliated
with the Sub-Adviser or with any such officer or employee, may render investment
management or advisory services to other investors and institutions, and that
such investors and institutions may own, purchase or sell, securities or other
interests in property that are the same as, similar to, or different from those
which are selected for purchase, holding or sale for the Fund. The Investment
Manager further acknowledges that the Sub-Adviser shall be in all respects free
to take action with respect to investments in securities or other interests in
property that are the same as, similar to, or different from those selected for
purchase, holding or sale for the Fund. Purchases and sales of individual
securities on behalf of the Fund or other accounts for investors or institutions
as to which the Sub-Adviser exercises investment discretion will be made on a
basis that is equitable and consistent with its fiduciary obligations to the
Fund and such other accounts. Nothing in this Agreement shall impose upon the
Sub-Adviser any obligation to purchase or sell, or recommend for purchase or
sale, for the Fund any security which the Sub-Adviser, its officers, affiliates
or employees may purchase or sell for the Sub-Adviser or such officer's,
affiliate's or employee's own accounts or for the account of any other client of
the Sub-Adviser, advisory or otherwise.
12. Continuance and Termination. This Agreement shall remain in full force
and effect for one year from the date hereof, and is renewable annually
thereafter by specific approval of the Directors or by vote of a majority of the
outstanding voting securities of the Fund. Any such renewal shall be approved by
the vote of a majority of the Directors who are not interested persons under the
ICA, cast in person at a meeting called for the purpose of voting on such
renewal. This Agreement may be terminated without penalty at any time by the
Investment Manager or the Sub-Adviser upon 60 days written notice, and will
automatically terminate in the event of (i) its "assignment" by either party to
this Agreement, as such term is defined in the ICA, subject to such exemptions
as may be granted by the Securities and Exchange Commission by rule, regulation
or order, or (ii) upon termination of the Management Agreement, provided the
Sub-Adviser has received prior written notice thereof.
13. Notification. The Sub-Adviser will notify the Investment Manager within
a reasonable time of any change in the personnel of the Sub-Adviser with
responsibility for making investment decisions in relation to the Fund (the
"Portfolio Manager(s)") or who have been authorized to give instructions to the
Custodian. The Sub-adviser shall be responsible for reasonable out-of-pocket
costs and expenses incurred by the Investment Manager, the Fund or the Company
to amend or supplement the Company's prospectus to reflect a change in Portfolio
Manager(s) or otherwise to comply with the ICA, the Securities Act of 1933, as
amended (the "1933 Act") or any other applicable statute, law, rule or
regulation, as a result of such change; provided, however, that the Sub-Adviser
shall not be responsible for such costs and expenses where the change in
Portfolio Manager(s) reflects the termination of employment of the Portfolio
Manager(s) with the Sub-Adviser and its affiliates or is the result of a request
by the Investment Manager.
Any notice, instruction or other communication required or contemplated by
this Agreement shall be in writing and shall be deemed to be provided upon
receipt. All such communications shall be addressed to the recipient at the
address set forth below, provided that either party may, by notice, designate a
different recipient and/or address for such party.
Investment Manager: American Skandia Investment Services, Incorporated
Xxx Xxxxxxxxx Xxxxx
Xxxxxxx, Xxxxxxxxxxx 00000
Attention: Xxxx Xxxxx
Senior Vice President & Chief Operating Officer
Sub-Adviser: Neuberger&Berman Management Incorporated
000 Xxxxx Xxxxxx
0xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000-0000
Attention: Xxxxx Xxxxxxx
General Counsel
Company: American Skandia Advisor Funds, Inc.
Xxx Xxxxxxxxx Xxxxx
Xxxxxxx, Xxxxxxxxxxx 00000
Attention: Xxxx X. Xxxxx, Esq.
14. Indemnification. The Sub-Adviser agrees to indemnify and hold harmless
the Investment Manager, any affiliated person within the meaning of Section
2(a)(3) of the ICA ("affiliated person") of the Investment Manager (which shall
not be deemed to include the Company or the Fund) and each person, if any who,
within the meaning of Section 15 of the 1933 Act, controls ("controlling
person") the Investment Manager, against any and all losses, claims, damages,
liabilities or litigation (including reasonable legal and other expenses), to
which the Investment Manager or such affiliated person or controlling person of
the Investment Manager may become subject under the 1933 Act, the ICA, the
Advisers Act, under any other statute, law, rule or regulation, at common law or
otherwise, arising out of the Sub-Adviser's responsibilities hereunder (1) to
the extent of and as a result of the willful misconduct, bad faith, or gross
negligence by the Sub-Adviser, any of the Sub-Adviser's employees or
representatives or any affiliate of or any person acting on behalf of the
Sub-Adviser, or (2) as a result of any untrue statement or alleged untrue
statement of a material fact contained in Sub-Adviser Information set forth in
the Registration Statement, including any amendment thereof or any supplement
thereto, or the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statement therein not
misleading, if such a statement or omission was made in reliance upon and in
conformity with written information furnished by the Sub-Adviser to the
Investment Manager, the Fund, the Company or any affiliated person of the
Investment Manager, the Fund or the Company or upon verbal information confirmed
by the Sub-Adviser in writing for the purpose of inclusion in such Registration
Statement, or (3) to the extent of, and as a result of, the failure of the
Sub-Adviser to execute, or cause to be executed, portfolio investment
transactions according to the requirements of the ICA; provided, however, that
in no case is the Sub-Adviser's indemnity in favor of the Investment Manager or
any affiliated person or controlling person of the Investment Manager deemed to
protect such person against any liability to which any such person would
otherwise be subject by reason of willful misconduct, bad faith or gross
negligence in the performance of its duties or by reason of its reckless
disregard of its obligations and duties under this Agreement.
The Investment Manager agrees to indemnify and hold harmless the
Sub-Adviser, any affiliated person of the Sub-Adviser and each controlling
person of the Sub-Adviser, if any, against any and all losses, claims, damages,
liabilities or litigation (including reasonable legal and other expenses), to
which the Sub-Adviser or such affiliated person or controlling person of the
Sub-Adviser may become subject under the 1933 Act, the ICA, the Advisers Act,
under any other statute, law, rule or regulation, at common law or otherwise,
arising out of the Investment Manager's responsibilities as investment manager
of the Fund (1) to the extent of and as a result of the willful misconduct, bad
faith, or gross negligence by the Investment Manager, any of the Investment
Manager's employees or representatives or any affiliate of or any person acting
on behalf of the Investment Manager, or (2) as a result of any untrue statement
or alleged untrue statement of a material fact contained in Sub-Adviser
Information set forth in the Registration Statement, including any amendment
thereof or any supplement thereto, or the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statement therein not misleading, if such a statement or omission was made other
than in reliance upon and in conformity with written information furnished by
the Sub-Adviser, or any affiliated person of the Sub-Adviser or other than upon
verbal information confirmed by the Sub-Adviser in writing for the purpose of
inclusion in such Registration Statement; provided, however, that in no case is
the Investment Manager's indemnity in favor of the Sub-Adviser or any affiliated
person or controlling person of the Sub-Adviser deemed to protect such person
against any liability to which any such person would otherwise be subject by
reason of willful misconduct, bad faith or gross negligence in the performance
of its duties or by reason of its reckless disregard of its obligations and
duties under this Agreement. It is agreed that the Investment Manager's
indemnification obligations under this Section 14 will extend to expenses and
costs (including reasonable attorneys fees) incurred by the Sub-Adviser as a
result of any litigation brought by the Investment Manager alleging the
Sub-Adviser's failure to perform its obligations and duties in the manner
required under this Agreement unless judgment is rendered for the Investment
Manager.
15. Conflict of Laws. The provisions of this Agreement shall be subject to
all applicable statutes, laws, rules and regulations, including, without
limitation, the applicable provisions of the ICA and rules and regulations
promulgated thereunder. To the extent that any provision contained herein
conflicts with any such applicable provision of law or regulation, the latter
shall control. The terms and provisions of this Agreement shall be interpreted
and defined in a manner consistent with the provisions and definitions of the
ICA. If any provision of this Agreement shall be held or made invalid by a court
decision, statute, rule or otherwise, the remainder of this Agreement shall
continue in full force and effect and shall not be affected by such invalidity.
16. Amendments, Waivers, etc. Provisions of this Agreement may be changed,
waived, discharged or terminated only by an instrument in writing signed by the
party against which enforcement of the change, waiver, discharge or termination
is sought. This Agreement (including Exhibit A hereto) may be amended at any
time by written mutual consent of the parties, subject to the requirements of
the ICA and rules and regulations promulgated and orders granted thereunder.
17. Governing State Law. This Agreement is made under, and shall be
governed by and construed in accordance with, the laws of the State of
Connecticut.
18. Severability. Each provision of this Agreement is intended to be
severable. If any provision of this Agreement is held to be illegal or made
invalid by court decision, statute, rule or otherwise, such illegality or
invalidity will not affect the validity or enforceability of the remainder of
this Agreement.
The effective date of this agreement is August 19, 1998.
FOR THE INVESTMENT MANAGER: FOR THE SUB-ADVISER:
___________________________________ ___________________________________
Xxxx Xxxxx
Senior Vice President & Chief Operating Officer
Date: ____________________________ Date: ____________________________
Attest: ____________________________ Attest: ____________________________
ASAFSubAdvAgreementN&BValue(06/98)
American Skandia Advisor Funds, Inc.
ASAF Neuberger&Berman Mid-Cap Value Fund
Sub-Advisory Agreement
EXHIBIT A
An annual rate of .40% of the average daily net assets of the Fund.
