MANAGEMENT AGREEMENT
Xxxx Xxxxx Partners Fund Advisor, LLC
This MANAGEMENT AGREEMENT ("Agreement") is made this 23rd day of
November, 2009, by and between Western Asset Global Corporate Defined
Opportunity Fund Inc. (the "Fund") and Xxxx Xxxxx Partners Fund Advisor, LLC,
a Delaware limited liability company (the "Manager").
WHEREAS, the Fund is registered as a management investment company under
the Investment Company Act of 1940, as amended (the "1940 Act");
WHEREAS, the Manager is engaged primarily in rendering investment
advisory, management and administrative services and is registered as an
investment adviser under the Investment Advisers Act of 1940, as amended;
WHEREAS, the Fund wishes to retain the Manager to provide investment
advisory, management, and administrative services to the Fund; and
WHEREAS, the Manager is willing to furnish such services on the terms
and conditions hereinafter set forth;
NOW THEREFORE, in consideration of the promises and mutual covenants
herein contained, it is agreed as follows:
1. The Fund hereby appoints the Manager to act as investment
adviser and administrator of the Fund for the period and on the terms set
forth in this Agreement. The Manager accepts such appointment and agrees to
render the services herein set forth, for the compensation herein provided.
2. The Fund shall at all times keep the Manager fully
informed with regard to the securities owned by it, its funds available, or to
become available, for investment, and generally as to the condition of its
affairs. It shall furnish the Manager with such other documents and
information with regard to its affairs as the Manager may from time to time
reasonably request.
3. (a) Subject to the supervision of the Fund's
Board of Directors (the "Board"), the Manager shall regularly provide the Fund
with investment research, advice, management and supervision and shall furnish
a continuous investment program for the Fund's portfolio of securities and
other investments consistent with the Fund's investment objectives, policies
and restrictions, as stated in the Fund's Prospectus and Statement of
Additional Information. The Manager shall determine from time to time what
securities and other investments will be purchased, retained, sold or
exchanged by the Fund and what portion of the assets of the Fund's portfolio
will be held in the various securities and other investments in which the Fund
invests, and shall implement those decisions, all subject to the provisions of
the Fund's Articles of Incorporation and By-Laws (collectively, the "Governing
Documents"), the 1940 Act, and the applicable rules and regulations
promulgated thereunder by the Securities and Exchange Commission (the "SEC")
and interpretive guidance issued thereunder by the SEC staff and any other
applicable federal and state law, as well as the investment objectives,
policies and restrictions of the Fund referred to above, and any other
specific policies adopted by the Board and disclosed to the Manager. The
Manager is authorized as the agent of the Fund to give instructions to the
custodian of the Fund as to deliveries of securities and other investments and
payments of cash for the account of the Fund. Subject to applicable
provisions of the 1940 Act and direction from the Board, the investment
program to be provided hereunder may entail the investment of all or
substantially all of the assets of the Fund in one or more investment
companies. The Manager will place orders pursuant to its investment
determinations for the Fund either directly with the issuer or with any broker
or dealer, foreign currency dealer, futures commission merchant or others
selected by it. In connection with the selection of such brokers or dealers
and the placing of such orders, subject to applicable law, brokers or dealers
may be selected who also provide brokerage and research services (as those
terms are defined in Section 28(e) of the Securities Exchange Act of 1934, as
amended (the "Exchange Act")) to the Fund and/or the other accounts over which
the Manager or its affiliates exercise investment discretion. The Manager is
authorized to pay a broker or dealer who provides such brokerage and research
services a commission for executing a portfolio transaction for the Fund which
is in excess of the amount of commission another broker or dealer would have
charged for effecting that transaction if the Manager determines in good faith
that such amount of commission is reasonable in relation to the value of the
brokerage and research services provided by such broker or dealer. This
determination may be viewed in terms of either that particular transaction or
the overall responsibilities which the Manager and its affiliates have with
respect to accounts over which they exercise investment discretion. The Board
may adopt policies and procedures that modify and restrict the Manager's
authority regarding the execution of the Fund's portfolio transactions
provided herein. The Manager shall also provide advice and recommendations
with respect to other aspects of the business and affairs of the Fund, shall
exercise voting rights, rights to consent to corporate action and any other
rights pertaining to the Fund's portfolio securities subject to such direction
as the Board may provide, and shall perform such other functions of investment
management and supervision as may be directed by the Board.
(b) Subject to the direction and control of the Board, the
Manager shall perform such administrative and management services as may from
time to time be reasonably requested by the Fund as necessary for the
operation of the Fund, such as (i) supervising the overall administration of
the Fund, including negotiation of contracts and fees with and the monitoring
of performance and xxxxxxxx of the Fund's transfer agent, shareholder
servicing agents, custodian and other independent contractors or agents,
(ii) providing certain compliance, fund accounting, regulatory reporting, and
tax reporting services, (iii) preparing or participating in the preparation of
Board materials, registration statements, proxy statements and reports and
other communications to shareholders, (iv) maintaining the Fund's existence,
and (v) during such times as shares are publicly offered, maintaining the
registration and qualification of the Fund's shares under federal and state
laws. Notwithstanding the foregoing, the Manager shall not be deemed to have
assumed any duties with respect to, and shall not be responsible for, the
distribution of the shares of the Fund, nor shall the Manager be deemed to
have assumed or have any responsibility with respect to functions specifically
assumed by any transfer agent, fund accounting agent, custodian, shareholder
servicing agent or other agent, in each case employed by the Fund to perform
such functions.
(c) The Fund hereby authorizes any entity or person associated
with the Manager which is a member of a national securities exchange to effect
any transaction on the exchange for the account of the Fund which is permitted
by Section 11(a) of the Exchange Act of 1934 and Rule 11a2-2(T) thereunder,
and the Fund hereby consents to the retention of compensation for such
transactions in accordance with Rule 11a2-2(T)(a)(2)(iv). Notwithstanding the
foregoing, the Manager agrees that it will not deal with itself, or with
members of the Board or any principal underwriter of the Fund, as principals
or agents in making purchases or sales of securities or other property for the
account of the Fund, nor will it purchase any securities from an underwriting
or selling group in which the Manager or its affiliates is participating, or
arrange for purchases and sales of securities between the Fund and another
account advised by the Manager or its affiliates, except in each case as
permitted by the 1940 Act and in accordance with such policies and procedures
as may be adopted by the Fund from time to time, and will comply with all
other provisions of the Governing Documents and the Fund's Prospectus and
Statement of Additional Information relative to the Manager and its directors
and officers.
4. Subject to the Board's approval, the Manager or the Fund may
enter into contracts with one or more investment subadvisers or
subadministrators, including without limitation, affiliates of the Manager, in
which the Manager delegates to such investment subadvisers or
subadministrators any or all its duties specified hereunder, on such terms as
the Manager will determine to be necessary, desirable or appropriate, provided
that in each case the Manager shall supervise the activities of each such
subadviser or subadministrator and further provided that such contracts impose
on any investment subadviser or subadministrator bound thereby all the
conditions to which the Manager is subject hereunder and that such contracts
are entered into in accordance with and meet all applicable requirements of
the 1940 Act.
5. (a) The Manager, at its expense, shall supply the Board
and officers of the Fund with all information and reports reasonably required
by them and reasonably available to the Manager and shall furnish the Fund
with office facilities, including space, furniture and equipment and all
personnel reasonably necessary for the operation of the Fund. The Manager
shall oversee the maintenance of all books and records with respect to the
Fund's securities transactions and the keeping of the Fund's books of account
in accordance with all applicable federal and state laws and regulations. In
compliance with the requirements of Rule 31a-3 under the 1940 Act, the Manager
hereby agrees that any records that it maintains for the Fund are the property
of the Fund, and further agrees to surrender promptly to the Fund any of such
records upon the Fund's request. The Manager further agrees to arrange for
the preservation of the records required to be maintained by Rule 31a-1 under
the 1940 Act for the periods prescribed by Rule 31a-2 under the 1940 Act. The
Manager shall authorize and permit any of its directors, officers and
employees, who may be elected as Board members or officers of the Fund, to
serve in the capacities in which they are elected.
(b) The Manager shall bear all expenses, and shall furnish all
necessary services, facilities and personnel, in connection with its
responsibilities under this Agreement. Other than as herein specifically
indicated, the Manager shall not be responsible for the Fund's expenses,
including, without limitation, advisory fees; distribution fees; interest;
taxes; governmental fees; voluntary assessments and other expenses incurred in
connection with membership in investment company organizations; organization
costs of the Fund; the cost (including brokerage commissions, transaction fees
or charges, if any) in connection with the purchase or sale of the Fund's
securities and other investments and any losses in connection therewith; fees
and expenses of custodians, transfer agents, registrars, independent pricing
vendors or other agents; legal expenses; loan commitment fees; expenses
relating to share certificates; expenses relating to the issuing and
redemption or repurchase of the Fund's shares and servicing shareholder
accounts; expenses of registering and qualifying the Fund's shares for sale
under applicable federal and state law; expenses of preparing, setting in
print, printing and distributing prospectuses and statements of additional
information and any supplements thereto, reports, proxy statements, notices
and dividends to the Fund's shareholders; costs of stationery; website costs;
costs of meetings of the Board or any committee thereof, meetings of
shareholders and other meetings of the Fund; Board fees; audit fees; travel
expenses of officers, members of the Board and employees of the Fund, if any;
and the Fund's pro rata portion of premiums on any fidelity bond and other
insurance covering the Fund and its officers, Board members and employees;
litigation expenses and any non-recurring or extraordinary expenses as may
arise, including, without limitation, those relating to actions, suits or
proceedings to which the Fund is a party and the legal obligation which the
Fund may have to indemnify the Fund's Board members and officers with respect
thereto.
6. No member of the Board, officer or employee of the Fund
shall receive from the Fund any salary or other compensation as such member of
the Board, officer or employee while he is at the same time a director,
officer, or employee of the Manager or any affiliated company of the Manager,
except as the Board may decide. This paragraph shall not apply to Board
members, executive committee members, consultants and other persons who are
not regular members of the Manager's or any affiliated company's staff.
7. As compensation for the services performed and the
facilities furnished and expenses assumed by the Manager, including the
services of any consultants retained by the Manager, the Fund shall pay the
Manager, as promptly as possible after the last day of each month, a fee,
computed daily at an annual rate set forth on Schedule A annexed hereto,
provided however, that if the Fund invests all or substantially all of its
assets in another registered investment company for which the Manager or an
affiliate of the Manager serves as investment adviser or investment manager,
the annual fee computed as set forth on such Schedule A shall be reduced by
the aggregate management fees allocated to that Fund for the Fund's then-
current fiscal year from such other registered investment company. The first
payment of the fee shall be made as promptly as possible at the end of the
month succeeding the effective date of this Agreement, and shall constitute a
full payment of the fee due the Manager for all services prior to that date.
If this Agreement is terminated as of any date not the last day of a month,
such fee shall be paid as promptly as possible after such date of termination,
shall be based on the managed assets of the Fund in that period from the
beginning of such month to such date of termination, and shall be that
proportion of such managed assets as the number of business days in such
period bears to the number of business days in such month. The managed assets
of the Fund shall in all cases be based only on business days and be computed
as of the time of the regular close of business of the New York Stock
Exchange, or such other time as may be determined by the Board.
8. The Manager assumes no responsibility under this Agreement
other than to render the services called for hereunder, in good faith, and
shall not be liable for any error of judgment or mistake of law, or for any
loss arising out of any investment or for any act or omission in the execution
of securities transactions for the Fund, provided that nothing in this
Agreement shall protect the Manager against any liability to the Fund to which
the Manager would otherwise be subject by reason of willful misfeasance, bad
faith, or gross negligence in the performance of its duties or by reason of
its reckless disregard of its obligations and duties hereunder. As used in
this Section 8, the term "Manager" shall include any affiliates of the Manager
performing services for the Fund contemplated hereby and the partners,
shareholders, directors, officers and employees of the Manager and such
affiliates.
9. Nothing in this Agreement shall limit or restrict the right
of any director, officer, or employee of the Manager who may also be a Board
member, officer, or employee of the Fund, to engage in any other business or
to devote his time and attention in part to the management or other aspects of
any other business, whether of a similar nature or a dissimilar nature, nor to
limit or restrict the right of the Manager to engage in any other business or
to render services of any kind, including investment advisory and management
services, to any other fund, firm, individual or association. If the purchase
or sale of securities consistent with the investment policies of the Fund or
one or more other accounts of the Manager is considered at or about the same
time, transactions in such securities will be allocated among the accounts in
a manner deemed equitable by the Manager. Such transactions may be combined,
in accordance with applicable laws and regulations, and consistent with the
Manager's policies and procedures as presented to the Board from time to time.
10. For the purposes of this Agreement, the Fund's "managed
assets" shall be determined as provided in the Fund's Prospectus and Statement
of Additional Information and the terms "assignment," "interested person," and
"majority of the outstanding voting securities" shall have the meanings given
to them by Section 2(a) of the 1940 Act, subject to such exemptions as may be
granted by the SEC by any rule, regulation or order.
11. This Agreement will become effective with respect to the Fund
on the date set forth on Schedule A annexed hereto, provided that it shall
have been approved by the Fund's Board and by the shareholders of the Fund in
accordance with the requirements of the 1940 Act and, unless sooner terminated
as provided herein, will continue in effect until November 21, 2011.
Thereafter, if not terminated, this Agreement shall continue in effect with
respect to the Fund, so long as such continuance is specifically approved at
least annually (i) by the Board or (ii) by a vote of a majority of the
outstanding voting securities of the Fund, provided that in either event the
continuance is also approved by a majority of the Board members who are not
interested persons of any party to this Agreement, by vote cast in person at a
meeting called for the purpose of voting on such approval.
12. This Agreement is terminable with respect to the Fund without
penalty by the Board or by vote of a majority of the outstanding voting
securities of the Fund, in each case on not more than 60 days' nor less than
30 days' written notice to the Manager, or by the Manager upon not less than
90 days' written notice to the Fund, and will be terminated upon the mutual
written consent of the Manager and the Fund. This Agreement shall terminate
automatically in the event of its assignment.
13. No provision of this Agreement may be changed, waived,
discharged or terminated orally, but only by an instrument in writing signed
by the party against which enforcement of the change, waiver, discharge or
termination is sought, and no material amendment of the Agreement shall be
effective until approved, if so required by the 1940 Act, by vote of the
holders of a majority of the Fund's outstanding voting securities.
14. This Agreement embodies the entire agreement and
understanding between the parties hereto, and supersedes all prior agreements
and understandings relating to the subject matter hereof. Should any part of
this Agreement be held or made invalid by a court decision, statute, rule or
otherwise, the remainder of this Agreement shall not be affected thereby.
This Agreement shall be binding on and shall inure to the benefit of the
parties hereto and their respective successors.
15. This Agreement shall be construed and the provisions thereof
interpreted under and in accordance with the laws of the State of New York.
[signature page to follow]
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their officers thereunto duly authorized.
WSETERN ASSET GLOBAL CORPORATE DEFINED
OPPORTUNITY FUND INC.
By:
Name:
Title:
XXXX XXXXX PARTNERS FUND ADVISOR, LLC
By:
Name:
Title:
Schedule A
Western Asset Global Corporate Defined Opportunity Fund Inc.
Date:
November 23, 2009
Fee:
The following percentage of the Fund's managed assets: 0.80%
For the purpose of the foregoing, "managed assets" means the net assets plus
the amount of any borrowings and assets attributable to any preferred stock
that may be outstanding.
