INVESTMENT ADVISORY AGREEMENT



      AGREEMENT made this 2nd day of December, 2002, by and between The New

America High Income Fund, Inc., a Maryland corporation (the "Fund"), and T. Rowe

Price Associates, Inc., a Maryland corporation (the "Investment Adviser").



      WHEREAS, the Fund is a closed-end, diversified management investment

company registered under the Investment Company Act of 1940, as amended (the

"1940 Act"); and



      WHEREAS, the Fund desires to retain the Investment Adviser to render

investment management services to the Fund under the terms of this Agreement in

reliance upon Rule 15a-4 under the 1940 Act prior to the approval by Fund

stockholders of this Agreement and intends to seek Fund stockholder approval of

this Agreement within the time period provided for under such Rule;



      WHEREAS the Investment Adviser is willing to render investment management

services to the Fund under the terms described herein;



      NOW, THEREFORE, in consideration of mutual covenants herein contained, the

parties hereto agree as follows:



      1. Duties of the Investment Adviser.



      The Investment Adviser shall manage the investment and reinvestment of the

Fund's assets; continuously review, supervise, and administer the investment

program of the Fund; determine in its discretion the securities to be purchased,

retained, sold, pledged or loaned (and implement those decisions); determine in

its discretion when, to what extent and under what terms the Fund shall engage

in bank or other borrowings, to the extent permitted by law and authorized by

the Fund's Board of Directors (and, together with the Fund's Administrator, if

and to the extent one shall be appointed by the Fund, or such other parties as

the Investment Adviser may select with the approval of the Fund, implement those

determinations); provide the Fund with records concerning the Investment Adviser

and its activities that the Fund is required to maintain; render regular reports

to the Fund's officers and Directors concerning the Investment Adviser's

discharge of the foregoing responsibilities; and supply the Fund's officers and

Directors with all statistical information and reports reasonably required by

them and reasonably available to the Investment Adviser, including, without

limitation, all information required under Section 15(c) of the 1940 Act.



      The Investment Adviser shall discharge the foregoing responsibilities

subject to the control of the officers and Directors of the Fund and in

compliance with such policies as the Directors may from time to time establish,

and in compliance with the objectives, policies, and limitations of the Fund set

forth in the Fund's prospectus, Registration Statement on Form N-2, charter and

relevant arrangements and agreements with respect to the Fund's senior

securities, if any, in each case as amended from time to time, and with all

applicable laws and regulations. The Investment Adviser agrees, at its own

expense, to render the services described herein and to provide the office

space, furnishings and equipment, and personnel required by it to perform those

services on the terms and for the compensation provided herein; provided,

however, that

{PAGE}



expenses for necessary services of parties other than the Investment Adviser

rendered in connection with the activities described above shall be borne by

those parties, or by the Fund, as appropriate. The Investment Adviser shall

authorize and permit any of its officers, partners and employees, who may be

elected as officers or Directors of the Fund, to serve in the capacities in

which they are elected.



      2. Portfolio Transactions.



      The Investment Adviser is authorized to arrange for the execution of the

Fund's portfolio transactions by selecting the brokers or dealers that will

execute the purchases and sales of portfolio securities for the Fund and is

Home        Intelligence        Services        Subscriptions        News        About Us

Contact Us       Terms of Use       Resend Documents       Shopping Cart

Copyright © 2008 The Consus Group LLC