SUB-ADVISORY AGREEMENT
AGREEMENT made this 25th day of April, 2003, by and between Evergreen
Investment Management Company, LLC (the "Adviser"), and First International
Advisors, LLC (the "Sub-adviser").
WHEREAS, the Adviser serves as investment adviser to the Evergreen
Managed Income Fund (the "Trust"), a Delaware statutory trust which has filed a
registration statement under the Investment Company Act of 1940, as amended (the
"1940 Act") and the Securities Act of 1933 (the "Registration Statement"); and
WHEREAS, the Adviser desires to avail itself of the services, advice
and assistance of the Sub-adviser to assist the Adviser in providing investment
advisory services to the Trust, as amended from time to time; and
WHEREAS, the Sub-adviser is registered under the Investment Advisers
Act of 1940, as amended (the "Advisers Act"), is engaged in the business of
rendering investment advisory services to investment companies and other
institutional clients and desires to provide such services to the Adviser;
NOW, THEREFORE, in consideration of the terms and conditions
hereinafter set forth, it is agreed as follow:
1. Employment of the Sub-adviser. The Adviser hereby employs the
Sub-adviser to manage the investment and reinvestment of the Trust's assets,
subject to the control and direction of the Trust's Board of Trustees, for the
period and on the terms hereinafter set forth. The Sub-adviser hereby accepts
such employment and agrees during such period to render the services and to
assume the obligations herein set forth for the compensation herein provided.
The Sub-adviser shall for all purposes herein be deemed to be an independent
contractor and shall, except as expressly provided or authorized (whether herein
or otherwise), have no authority to act for or represent the Adviser or the
Trust in any way. The Sub-adviser may execute Trust documentation, agreements,
contracts and other documents requested by brokers, dealers, counterparties and
other persons in connection with its providing advisory services to the Trust.
2. Obligations of Services to be provided by the Sub-adviser. The
Sub-adviser undertakes to provide the following services and to assume the
following obligations:
a. The Sub-adviser shall manage the investment and
reinvestment of the portfolio assets of the Trust, all without prior
consultation with the Adviser, subject to and in accordance with (i)
the investment objective and policies of the Trust set forth in the
Trust's Prospectus and Statement of Additional Information as from time
to time in effect (the "Governing Documents"), (ii) the requirements
applicable to registered investment companies under applicable laws,
including without limitation the 1940 Act and Subchapter M of the
Internal Revenue Code of 1986, as amended (the "Code") and (iii) any
written instructions which the Adviser or the Trust's Board of Trustees
may issue from time-to-time. The Sub-adviser also agrees to conduct its
activities hereunder in accordance with any applicable procedures or
policies adopted by the Trust's Board of Trustees as from time to time
in effect (the "Procedures"). The Adviser has provided to the
Sub-adviser copies of all Governing Documents and Procedures and shall
promptly provide to the Sub-adviser any amendments or supplements
thereto. Subject to and in pursuance of the foregoing, the Sub-adviser
shall make all determinations with respect to the purchase and sale of
portfolio securities and shall take such action necessary to implement
the same. The Sub-adviser shall render such reports to the Trust's
Board of Trustees and the Adviser as they may reasonably request
concerning the investment activities of the Trust. Unless the Adviser
gives the Sub-adviser written instructions to the contrary, the
Sub-adviser shall, in good faith and in a manner which it reasonably
believes best serves the interests of the Trust's shareholders, direct
the Trust's custodian as to how to vote such proxies as may be
necessary or advisable in connection with any matters submitted to a
vote of shareholders of securities held in the Trust.
b. Absent instructions of the Adviser to the contrary, the
Sub-adviser shall, in the name of the Trust, place orders for the
execution of portfolio transactions with or through such brokers,
dealers or other financial institutions as it may select. The
Sub-adviser shall use its best efforts to obtain best execution on all
portfolio transactions executed on behalf of the Trust, provided that,
so long as the Sub-adviser has complied with Section 28(e) of the
Securities Exchange Act of 1934, the Sub-adviser may cause the Trust to
pay a commission on a transaction in excess of the amount of commission
another broker-dealer would have charged.
c. In connection with the placement of orders for the
execution of the portfolio transactions of the Trust, the Sub-adviser
shall create and maintain all records pertaining to the purchase and
sale of securities by the Sub-adviser on behalf of the Trust required
by Rule 31a-1(b)(5) and (9) under the 1940 Act. All such records shall
be the property of the Trust and shall be available for inspection and
use by the Securities and Exchange Commission ("SEC"), the Trust, the
Adviser or any person retained by the Trust at all reasonable times.
Where applicable, such records shall be maintained by the Sub-adviser
for the periods and in the places required by Rule 31a-2 under the 0000
Xxx.
d. The Sub-adviser shall bear its expenses of providing
services pursuant to this Agreement.
3. Compensation of the Sub-adviser. In full consideration of services
rendered pursuant to this Agreement, the Adviser will pay the Sub-adviser a fee
at the annual rate set forth in Schedule A hereto of the value of the Trust's
average daily total assets. Such fee shall be accrued daily and paid monthly as
soon as practicable after the end of each month. If the Sub-adviser shall serve
for less than the whole of any month, the foregoing compensation shall be
prorated. For the purpose of determining fees payable to the Sub-adviser, the
value of the Trust's net assets shall be computed at the times and in the manner
determined by the Trust's Board of Trustees and set forth in the Governing
Documents.
4. Other Activities of the Sub-adviser. The services of the Sub-adviser
hereunder are not to be deemed exclusive, and the Sub-adviser shall be free to
render similar services to others and to engage in other activities, so long as
the services rendered hereunder are not impaired.
5. Use of Names. The Adviser shall not use the name of the Sub-adviser
or any of its affiliates in any prospectus, sales literature or other material
relating to the Trust in any manner not approved prior thereto by the
Sub-adviser; provided, however, that the Adviser may use the name of the
Sub-adviser and its affiliates in any such material that merely refers in
accurate terms to the Sub-adviser's appointment hereunder. The Sub-adviser shall
not use the name of the Trust or the Adviser in any material relating to the
Sub-adviser in any manner not approved prior thereto by the Adviser; provided,
however, that the Sub-adviser may use the name of the Adviser or the Trust in
any material that merely refers in accurate terms to the appointment of the
Sub-adviser hereunder.
6. Liability of the Sub-adviser. Absent willful misfeasance, bad faith,
gross negligence, or reckless disregard of obligations or duties hereunder on
the part of the Sub-adviser, the Sub-adviser shall not be liable for any act or
omission in the course of, or connected with, rendering services hereunder or
for any losses that may be sustained in the purchase, holding or sale of any
security. Subject to the foregoing, nothing herein shall constitute a waiver of
any rights or remedies that the Trust may have under any federal or state
securities laws.
7. Limitation of Trust's Liability. The Sub-adviser acknowledges that
it has received notice of and accepts the limitations upon the Trust's liability
set forth in its Agreement and Declaration of Trust. The Sub-adviser agrees that
any of the Trust's obligations shall be limited to the assets of the Trust and
that the Sub-adviser shall not seek satisfaction of any such obligation from the
shareholders of the Trust nor from any Trust officer, employee or agent of the
Trust.
8. Renewal, Termination and Amendment. This Agreement shall continue in
effect, unless sooner terminated as hereinafter provided, until December 31,
2001 and shall continue in full force and effect for successive periods of one
year thereafter, but only so long as each such continuance is specifically
approved at least annually by vote of the holders of a majority of the
outstanding voting securities of the Trust or by vote of a majority of the
Trustees who are not parties to this Agreement or interested persons of any such
party, cast in accordance with the provisions of the 1940 Act. This Agreement
may be terminated at any time without payment of any penalty, by the Adviser,
the Trust's Board of Trustees, or by a vote of a majority of the outstanding
voting securities of the Trust upon 60 days prior written notice to the
Sub-adviser or by the Sub-adviser upon 90 days prior written notice to the
Adviser, or upon such shorter notice as may be mutually agreed upon. This
Agreement shall terminate automatically and immediately upon termination of the
Management Agreement between the Adviser and the Trust. This Agreement shall
terminate automatically and immediately in the event of its assignment. The
terms "assignment" and vote of a majority of the outstanding voting securities"
shall have the meaning set forth for such terms in the 1940 Act. This Agreement
may be amended at any time by the Sub-adviser and the Adviser, subject to
approval by the Trust's Board of Trustees and, if required by applicable SEC
rules and regulations, a vote of a majority of the Trust's outstanding voting
securities.
9. Confidential Relationship. Any information and advice furnished by
either party to this Agreement to the other shall be treated as confidential and
shall not be disclosed to third parties without the consent of the other party
hereto except as required by law, rule or regulation. The Adviser hereby
consents to the disclosure to third parties of investment results and other data
of the Trust in connection with providing composite investment results and
related information of the Sub-adviser.
10. Severability. If any provision of this Agreement shall be held or
made invalid by a court decision, statue, rule or otherwise, the remainder of
this Agreement shall not be affected thereby.
11. Miscellaneous. Each party agrees to perform such further actions
and execute such further documents as are necessary to effectuate the purposes
hereof. This Agreement shall be construed and enforced in accordance with and
governed by the laws of the Commonwealth of Massachusetts. The captions in this
Agreement are included for convenience only and in no way define or delimit any
of the provisions hereof or otherwise affect their construction or effect. This
Agreement may be executed in several counterparts, all of which together shall
for all purposes constitute one Agreement, binding on the parties.
IN WITNESS WHEREOF, the parties have duly executed this Agreement as of
the date first written above.
EVERGREEN INVESTMENT MANAGEMENT COMPANY, LLC
By: /s/ Xxxxxxx X. Xxxxxx
Name: Xxxxxxx X. Xxxxxx
Title: Secretary
FIRST INTERNATIONAL ADVISORS, LLC
By: /s/ Xxxxxx X. XxXxxxx
Name: Xxxxxx X. XxXxxxx
Title: Managing Director
April 25, 2003
Schedule A
As compensation for the Sub-adviser's services to the Trust during the
period of this Agreement, the Adviser will pay to the Sub-adviser a fee at the
annual rate of:
I. Evergreen Managed Income Fund
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0.05% of the Average Daily Total Assets of the Trust (defined
as net assets of the Trust plus borrowings or other leverage
for investment purposes to the extent excluded in calculating
net assets)
