Exhibit (d)(5)
INVESTMENT ADVISORY AGREEMENT
UAM FUNDS, INC.
ICM SMALL COMPANY PORTFOLIO
AGREEMENT made this 25th day of January, 2002 by and between UAM Funds,
Inc., a Maryland corporation ("UAM Funds"), on behalf of the ICM Small Company
Portfolio (the "Portfolio"), and Investment Counselors of Maryland, LLC, a
Delaware limited liability company (the "Adviser").
1. Duties of Adviser. UAM Funds hereby appoints the Adviser to act as
investment adviser to UAM Funds' ICM Small Company Portfolio (the "Portfolio")
for the period and on such terms as set forth in this Agreement. UAM Funds
employs the Adviser to manage the investment and reinvestment of the assets of
the Portfolio, to continuously review, supervise and administer the investment
program of the Portfolio, to determine in its discretion the securities to be
purchased or sold and the portion of the Portfolio's assets to be held
uninvested, to provide UAM Funds with records concerning the Adviser's
activities which UAM Funds is required to maintain, and to render regular
reports to UAM Funds' officers and Board of Directors concerning the Adviser's
discharge of the foregoing responsibilities. The Adviser shall discharge the
foregoing responsibilities subject to the control of the officers and the Board
of Directors of UAM Funds, and in compliance with the objectives, policies and
limitations set forth in the Portfolio's prospectus and applicable laws and
regulations. The Adviser accepts such employment and agrees to render the
services and to provide, at its own expense, the office space, furnishings and
equipment and the personnel required by it to perform the services on the terms
and for the compensation provided herein.
2. Portfolio Transactions. The Adviser is authorized to select the
brokers or dealers that will execute the purchases and sales of securities of
the Portfolio and is directed to use its best efforts to obtain the best
available price and most favorable execution, except as prescribed herein.
Subject to policies established by the Board of Directors of UAM Funds, the
Adviser may also be authorized to effect individual securities transactions at
commission rates in excess of the minimum commission rates available, if the
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 or dealer, viewed in terms of either that particular transaction or the
Adviser's overall responsibilities with respect to UAM Funds. The execution of
such transactions shall not be deemed to represent an unlawful act or breach of
any duty created by this Agreement or otherwise. The Adviser will promptly
communicate to the officers and Directors of UAM Funds such information relating
to portfolio transactions as they may reasonably request.
3. Compensation of the Adviser. For the services to be rendered by the
Adviser as provided in Section 1 of this Agreement, UAM Funds shall pay to the
Adviser in monthly installments, an advisory fee calculated by applying the
following annual percentage rate to the Portfolio's average daily net assets for
the month: 0.70%.
In the event of termination of this Agreement, the fee provided in this
Section shall be computed on the basis of the period ending on the last business
day on which this Agreement is in effect subject to a pro rata adjustment based
on the number of days elapsed in the current fiscal month as a percentage of the
total number of days in such month.
4. Other Services. At the request of UAM Funds, the Adviser in its
discretion may make available to UAM Funds office facilities, equipment,
personnel and other services. Such office facilities, equipment, personnel and
services shall be provided for or rendered by the Adviser and billed to UAM
Funds at the Adviser's cost.
5. Reports. UAM Funds and the Adviser agree to furnish to each other
current prospectuses, proxy statements, reports to shareholders, certified
copies of their financial statements, and such other information with regard to
their affairs as each may reasonably request.
6. Status of Adviser. The services of the Adviser to UAM Funds are not to
be deemed exclusive, and the Adviser shall be free to render similar services to
others so long as its services to UAM Funds are not impaired thereby.
7. Liability of Adviser. In the absence of (i) willful misfeasance, bad
faith or gross negligence on the part of the Adviser in performance of its
obligations and duties hereunder, (ii) reckless disregard by the Adviser of its
obligations and duties hereunder, or (iii) a loss resulting from a breach of
fiduciary duty with respect to the receipt of compensation for services (in
which case any award of damages shall be limited to the period and the amount
set forth in Section 36(b)(3) of the Investment Company Act of 1940, as amended
("1940 Act")) the Adviser shall not be subject to any liability whatsoever to
UAM Funds, or to any shareholder of UAM Funds, for any error or judgment,
mistake of law or any other act or omission in the course of, or connected with,
rendering services hereunder including, without limitation, for any losses that
may be sustained in connection with the purchase, holding, redemption or sale of
any security on behalf of the Portfolio.
8. Permissible Interests. Subject to and in accordance with the Articles
of Incorporation of UAM Funds and the Certificate of Formation of the Adviser,
Directors, officers, agents and shareholders of UAM Funds are or may be
interested in the Adviser (or any successor thereof) as Directors, officers,
agents, shareholders or otherwise; Directors, officers, agents and shareholders
of the Adviser are or may be interested in UAM Funds as Directors, officers,
agents, shareholders or otherwise; and the Adviser (or any successor) is or may
be interested in UAM Funds as a shareholder or otherwise; and the effect of any
such interrelationships shall be governed by said Articles of Incorporation of
UAM Funds or Certificate of Formation of the Adviser and the provisions of the
1940 Act.
9. Duration and Termination. This Agreement, unless sooner terminated as
provided herein, shall continue with respect to UAM Funds for two years.
Thereafter, if not terminated, this Agreement shall automatically continue in
effect for successive annual periods provided such continuance is specifically
approved at least annually (a) by the vote of a majority of those members of the
Board of Directors of UAM Funds who are not parties to this
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Agreement or interested persons of any such party, cast in person at a meeting
called for the purpose of voting on such approval, and (b) by the Board of
Directors of UAM Funds or (c) by vote of a majority of the outstanding voting
securities of the Portfolio; provided however, that if the shareholders of the
Portfolio fail to approve the Agreement as provided herein, the Adviser may
continue to serve in such capacity in the manner and to the extent permitted by
the 1940 Act and rules thereunder. This Agreement may be terminated by the
Portfolio at any time, without the payment of any penalty, by vote of a majority
of the entire Board of Directors of UAM Funds or by vote of a majority of the
outstanding voting securities of the Portfolio on 60 days' written notice to the
Adviser. This Agreement may be terminated by the Adviser at any time, without
the payment of any penalty, upon 90 days' written notice to UAM Funds. This
Agreement will automatically and immediately terminate in the event of its
assignment. Any notice under this Agreement shall be given in writing, addressed
and delivered or mailed postpaid, to the other party at the principal office of
such party.
As used in this Section 9, the terms "assignment," "interested persons,"
and "a vote of a majority of the outstanding voting securities" shall have the
respective meanings set forth in Section 2(a)(4), Section 2(a)(19) and Section
2(a)(42) of the 1940 Act. The foregoing requirement that continuance of this
Agreement be "specifically approved at least annually" shall be construed in a
manner consistent with the 1940 Act and the rules and regulations thereunder.
10. Amendment of Agreement. This Agreement may be amended by mutual
consent, but the consent of UAM Funds must be approved (a) by vote of a majority
of those members of the Board of Directors of UAM Funds who are not parties to
this Agreement or interested persons of any such party, cast in person at a
meeting called for the purpose of voting on such amendment, and (b) for changes
or amendments requiring shareholder approval pursuant to the 1940 Act or other
applicable law, by vote of a majority of the outstanding voting securities of
the Portfolio.
11. Severability. If any provisions of this Agreement shall be held or
made invalid by a court decision, statute, rule or otherwise, the remainder of
this Agreement shall not he affected thereby.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of this 25th day of January, 2002.
INVESTMENT COUNSELORS OF UAM FUNDS, INC.
MARYLAND, LLC
By /s/ Xxxxxx X. XxXxxxxx Xx. By /s/ Xxxxx X. Xxxxxx
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Name: Xxxxxx X. XxXxxxxx Xx. Name: Xxxxx X. Xxxxxx
Title: Principal Title: Vice President
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