Document:

Exhibit 10.13

 

INVESTMENT
MANAGEMENT AGREEMENT

 

 

THIS AGREEMENT,
originally made the 9th day of March, 1995, by and between WADDELL &
REED ADVISORS ASSET STRATEGY FUND, INC., (f/k/a United Asset Strategy Fund, Inc.)
(“Fund”), and WADDELL & REED INVESTMENT MANAGEMENT COMPANY (“WRIMCO”),
and hereby amended and restated effective November 9, 2005, has been
approved, annually, by the Board of Directors, including separate approval by
the Disinterested Directors, as prescribed by Section 15(c) of the
Investment Company Act of 1940, as amended (“1940 Act”).

 

 

WITNESSETH:

 

In consideration of the
mutual promises and agreements herein contained and other good and valuable
consideration, the receipt of which is hereby acknowledged, it is hereby agreed
by and between the parties hereto as follows:

 

I.              In General

 

                WRIMCO agrees to act as investment adviser to the
Fund with respect to the investment of its assets and in general to supervise
the investments of the Fund, subject at all times to the direction and control of
the Board of Directors of the Fund, all as more fully set forth herein.

 

II.            Duties of WRIMCO with respect to
investment of assets of the Fund

 

                A.  WRIMCO
shall regularly provide investment advice to the Fund and shall, subject to the
succeeding provisions of this section, continuously supervise the investment
and reinvestment of cash, securities or other property comprising the assets of
the investment portfolio of the Fund; and in furtherance thereof, WRIMCO shall:

 

                                1. 
obtain and evaluate pertinent information about significant developments
and economic, statistical and financial data, domestic, foreign or otherwise,
whether affecting the economy generally or the portfolio of the Fund, and
whether concerning the individual companies whose securities are included in
the Fund’s portfolio or the industries in which they engage, or with respect to
securities which WRIMCO considers desirable for inclusion in the Fund’s
portfolio;

 

                                2. 
furnish continuously an investment program for the portfolio of the Fund;

 

                                3. 
determine what securities shall be purchased or sold by the Fund;

 

                                4. 
take, on behalf of the Fund, all actions which appear to WRIMCO
necessary to carry into effect such investment programs and supervisory
functions as aforesaid, including the placing of purchase and sale orders.

 

 

 

                B.  WRIMCO
shall make appropriate and regular reports to the Board of Directors of the
Fund on the actions it takes pursuant to Section II.A. above.  Any investment programs furnished by WRIMCO
under this section, or any supervisory function taken hereunder by WRIMCO shall
at all times conform to and be in accordance with any requirements imposed by:

 

                                1. 
the provisions of the 1940 Act and any rules or regulations in
force thereunder;

 

                                2. 
any other applicable provision of law;

 

                                3. 
the provisions of the Articles of Incorporation of the Fund as amended
from time to time;

 

                                4. 
the provisions of the Bylaws of the Fund as amended from time to time;

 

                                5. 
the terms of the registration statement of the Fund, as amended from
time to time, under the Securities Act of 1933 and the 1940 Act.

 

                C.  Any
investment programs furnished by WRIMCO under this section or any supervisory
functions taken hereunder by WRIMCO shall at all times be subject to any
directions of the Board of Directors of the Fund, its Executive Committee, or
any committee or officer of the Fund acting pursuant to authority given by the
Board of Directors.

 

III.           Allocation of Expenses

 

                The expenses of the Fund and the expenses of WRIMCO
in performing its functions under this Agreement shall be divided into two
classes, to wit:  (i) those expenses
which will be paid in full by WRIMCO as set forth in subparagraph “A” hereof,
and (ii) those expenses which will be paid in full by the Fund, as set
forth in subparagraph “B” hereof.

 

                A.  With
respect to the duties of WRIMCO under Section II above, it shall pay in
full, except as to the brokerage and research services acquired through the
allocation of commissions as provided in Section IV hereinafter, for (a) the
salaries and employment benefits of all employees of WRIMCO who are engaged in
providing these advisory services; (b) adequate office space and suitable
office equipment for such employees; and (c) all telephone and
communications costs relating to such functions.  In addition, WRIMCO shall pay the fees and
expenses of all directors of the Fund who are employees of WRIMCO or an
affiliated corporation and the salaries and employment benefits of all officers
of the Fund who are affiliated persons of WRIMCO.

 

                B.  The Fund
shall pay in full for all of its expenses which are not listed above (other
than those assumed by WRIMCO or its affiliates in their respective capacities
as principal underwriter of the shares of the Fund, as Shareholder Servicing Agent
or as Accounting Services Agent for the Fund), including (a) the costs of
preparing and printing prospectuses and reports to shareholders of the Fund,
including mailing costs; (b) the costs of printing all proxy statements
and all other costs and expenses of meetings of shareholders of the Fund
(unless the Fund and 

 

 

2

 

WRIMCO shall otherwise
agree); (c) interest, taxes, brokerage commissions and premiums on
fidelity and other insurance; (d) audit fees and expenses of independent
accountants and legal fees and expenses of attorneys, but not of attorneys who
are employees of WRIMCO or an affiliated company; (e) fees and expenses of
its directors not affiliated with WRIMCO or its affiliates; (f) custodian
fees and expenses; (g) fees payable by the Fund under the Securities Act
of 1933, the 1940 Act, and the securities or “Blue-Sky” laws of any
jurisdiction; (h) fees and assessments of the Investment Company Institute
or any successor organization; (i) such nonrecurring or extraordinary
expenses as may arise, including litigation affecting the Fund, and any
indemnification by the Fund of its officers, directors, employees and agents
with respect thereto; (j) the costs and expenses provided for in any
Shareholder Servicing Agreement or Accounting Services Agreement, including
amendments thereto, contemplated by subsection C of this Section III.  In the event that any of the foregoing shall,
in the first instance, be paid by WRIMCO, the Fund shall pay the same to WRIMCO
on presentation of a statement with respect thereto.

 

                C.  WRIMCO or
an affiliate of WRIMCO, may also act as (i) transfer agent or shareholder
servicing agent of the Fund and/or as (ii) accounting services agent of
the Fund if at the time in question there is a separate agreement, “Shareholder
Servicing Agreement” and/or “Accounting Services Agreement,” covering such
functions between the Fund and WRIMCO or such affiliate.  The corporation, whether WRIMCO or its
affiliate, which is the party to such Agreement with the Fund is referred to as
the “Agent.”  Each such Agreement shall
provide in substance that it shall not go into effect, or be amended, or a new
agreement covering the same topics between the Fund and the Agent be entered
into, unless the terms of such Agreement, such amendment or such new agreement
have been approved by the Board of Directors of the Fund, including the vote of
a majority of the directors who are not “interested persons” as defined in the
1940 Act, of either party to the Agreement, such amendment or such new
agreement (considering WRIMCO to be such a party even if at the time in
question the Agent is an affiliate of WRIMCO), cast in person at a meeting
called for the purpose of voting on such approval.  Such a vote is referred to as a “disinterested
director” vote.  Each such Agreement
shall also provide in substance for its continuance, unless terminated, for a
specified period which shall not exceed two years from the date of its
execution and from year to year thereafter only if such continuance is
specifically approved at least annually by a disinterested director vote, and
that any disinterested director vote shall include a determination that (i) the
Agreement, amendment, new agreement or continuance in question is in the best
interests of the Fund and its shareholders; (ii) the services to be
performed under the Agreement, the Agreement as amended, new agreement or
agreement to be continued are services required for the operation of the Fund; (iii) the
Agent can provide services the nature and quality of which are at least equal
to those provided by others offering the same or similar services; and (iv) the
fees for such services are fair and reasonable in light of the usual and
customary charges made by others for services of the same nature and
quality.  Any such Agreement may also
provide in substance that any disinterested director vote may be conditioned on
the favorable vote of the holders of a majority (as defined in or under the
1940 Act) of the outstanding shares of each class of the Fund.  Any such Agreement shall also provide in
substance that it may be terminated by the Agent at any time without penalty
upon giving the Fund one hundred twenty (120) days’ written notice (which
notice may be waived by the Fund) and may be terminated by the Fund at any time
without penalty upon giving the Agent 

 

 

3

 

sixty (60) days’ written
notice (which notice may be waived by the Agent), provided that such
termination by the Fund shall be directed or approved by the vote of a majority
of the Board of Directors of the Fund in office at the time or by the vote of
the holders of a majority (as defined in or under the 1940 Act) of the
outstanding shares of each class of the Fund.

 

IV.           Brokerage

 

                A.  WRIMCO may
select brokers to effect the portfolio transactions of the Fund on the basis of
its estimate of their ability to obtain, for reasonable and competitive
commissions, the best execution of particular and related portfolio transactions.  For this purpose, “best execution” means
prompt and reliable execution at the most favorable price obtainable.  Such brokers may be selected on the basis of
all relevant factors including the execution capabilities required by the
transaction or transactions, the importance of speed, efficiency, or
confidentiality, and the willingness of the broker to provide useful or
desirable investment research and/or special execution services.  WRIMCO shall have no duty to seek advance
competitive commission bids and may select brokers based solely on its current
knowledge of prevailing commission rates.

 

                B.  Subject to
the foregoing, WRIMCO shall have discretion, in the interest of the Fund, to
direct the execution of its portfolio transactions to brokers who provide
brokerage and/or research services (as such services are defined in Section 28(e) of
the Securities Exchange Act of 1934) for the Fund and/or other accounts for
which WRIMCO exercises “investment discretion” (as that term is defined in Section 3(a)(35)
of the Securities Exchange Act of 1934); and in connection with such
transactions, to pay commission in excess of the amount another adequately
qualified broker would have charged if WRIMCO determines, in good faith, that
such commission is reasonable in relation to the value of the brokerage and/or
research services provided by such broker, viewed in terms of either that
particular transaction or the overall responsibilities of WRIMCO with respect
to the accounts for which it exercises investment discretion.  In reaching such determination, WRIMCO will
not be required to attempt to place a specified dollar amount on the brokerage
and/or research services provided by such broker; provided that WRIMCO shall be
prepared to demonstrate that such determinations were made in good faith, and
that all commissions paid by the Fund over a representative period selected by
its Board of Directors were reasonable in relation to the benefits to the Fund.

 

V.            Compensation of WRIMCO

 

                As compensation in full for services rendered and for
the facilities and personnel furnished under sections I, II, and IV of
this Agreement, the Fund will pay to WRIMCO for each day the fees specified in Exhibit A
hereto.

 

                The amounts payable to WRIMCO shall be determined as
of the close of business each day; shall, except as set forth below, be based
upon the value of net assets computed in accordance with the Articles of
Incorporation of the Fund; and shall be paid in arrears whenever requested by
WRIMCO.  In computing the value of the net
assets of the Fund, there shall be excluded the amount owed to the Fund with
respect to shares which have been sold but not yet paid to the Fund by Waddell &
Reed, Inc.

 

 

4

 

                Notwithstanding the foregoing, if the laws,
regulations or policies of any state in which shares of the Fund are qualified
for sale limit the operation and management expenses of the Fund, WRIMCO will
refund to the Fund the amount by which such expenses exceed the lowest of such
state limitations.

 

VI.           Undertakings of WRIMCO;
Liabilities

 

                WRIMCO shall give to the Fund the benefit of its best
judgment, efforts and facilities in rendering advisory services hereunder.

 

                WRIMCO shall at all times be guided by and be subject
to the Fund’s investment policies, the provisions of the Fund’s Articles of
Incorporation and Bylaws as each shall from time to time be amended, and to the
decision and determination of the Fund’s Board of Directors.

 

                This Agreement shall be performed in accordance with the
requirements of the 1940 Act, the Investment Advisers Act of 1940, the
Securities Act of 1933, and the Securities Exchange Act of 1934, to the extent
that the subject matter of this Agreement is within the purview of such Acts.  Insofar as applicable to WRIMCO, as an
investment adviser and affiliated person of the Fund, WRIMCO shall comply with
the provisions of the 1940 Act, the Investment Advisers Act of 1940 and the
respective rules and regulations of the Securities and Exchange Commission
thereunder.

 

                In the absence of willful misfeasance, bad faith,
gross negligence or reckless disregard of obligations or duties hereunder on
the part of WRIMCO, it shall not be subject to liability to the Fund or to any
stockholder of the Fund (direct or beneficial) for any act or omission in the
course of or connected with rendering services thereunder or for any losses
that may be sustained in the purchase, holding or sale of any security.

 

VII.          Duration of this Agreement

 

                This Agreement shall become effective at the start of
business on the date hereof and shall continue in effect, unless terminated as
hereinafter provided, for a period of one year and from year-to-year thereafter
only if such continuance is specifically approved at least annually by the
Board of Directors, including the vote of a majority of the directors who are
not parties to this Agreement or “interested persons” (as defined in the 1940
Act) of any such party, cast in person at a meeting called for the purpose of
voting on such approval, or by the vote of the holders of a majority (as so
defined) of the outstanding voting securities of each class of the Fund and by
the vote of a majority of the directors who are not parties to this Agreement
or “interested persons” (as so defined) of any such party, cast in person at a
meeting called for the purpose of voting on such approval.

 

 

5

 

VIII.        Termination

 

                This Agreement may be terminated by WRIMCO at any
time without penalty upon giving the Fund one hundred twenty (120) days’
written notice (which notice may be waived by the Fund) and may be terminated
by the Fund at any time without penalty upon giving WRIMCO sixty (60) days’
written notice (which notice may be waived by WRIMCO), provided that such termination
by the Fund shall be directed or approved by the vote of a majority of the
Board of Directors of the Fund in office at the time or by the vote of a
majority (as defined in the 1940 Act) of the outstanding voting securities of
the Fund.  This Agreement shall
automatically terminate in the event of its assignment, the term “assignment”
for this purpose having the meaning defined in Section 2(a)(4) of the
1940 Act and the rules and regulations thereunder.

 

IN WITNESS WHEREOF, the
parties hereto have caused the foregoing instrument to be executed by their
duly authorized officers and their corporate seal to be hereunto affixed, all
as of the day and year first above written.

 

	
  (Seal)

  	
   

  	
  WADDELL & REED
  ADVISORS

  
	
   

  	
   

  	
   

  	
  ASSET STRATEGY FUND,
  INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Kristen A. Richards

  	
   

  
	
   

  	
   

  	
   

  	
  Kristen A. Richards

  	
   

  
	
   

  	
   

  	
   

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/Megan E. Bray

  	
   

  	
   

  	
   

  
	
   

  	
  Megan E. Bray

  	
   

  	
   

  	
   

  
	
   

  	
  Assistant Secretary

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Seal)

  	
   

  	
  WADDELL & REED
  INVESTMENT

  
	
   

  	
   

  	
   

  	
  MANAGEMENT COMPANY

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Henry J. Herrmann

  	
   

  
	
   

  	
   

  	
   

  	
  Henry J. Herrmann

  	
   

  
	
   

  	
   

  	
   

  	
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/Wendy J. Hills

  	
   

  	
   

  	
   

  
	
   

  	
  Wendy J. Hills

  	
   

  	
   

  	
   

  
	
   

  	
  Secretary

  	
   

  	
   

  	
   

  
								

 

 

6

 

EXHIBIT A TO
INVESTMENT MANAGEMENT AGREEMENT

 

 

WADDELL &
REED ADVISORS ASSET STRATEGY FUND, INC.

 

FEE SCHEDULE

 

A cash fee computed each
day on net asset value for the Fund at the annual rates listed below:

 

	
  Net
  Assets

  	
   

  	
  Fee

  
	
   

  	
   

  	
   

  
	
  Up to $1 billion

  	
   

  	
  0.70% of net assets

  
	
   

  	
   

  	
   

  
	
  Over $1 billion and up
  to $2 billion

  	
   

  	
  0.65% of net assets

  
	
   

  	
   

  	
   

  
	
  Over $2 billion and up
  to $3 billion

  	
   

  	
  0.60% of net assets

  
	
   

  	
   

  	
   

  
	
  Over $3 billion

  	
   

  	
  0.55% of net assets

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fee Schedule as Effective
June 30, 1999.

 

 

7Exhibit 10.14

 

INVESTMENT
MANAGEMENT AGREEMENT

 

 

THIS AGREEMENT,
originally made the 31st day of August, 1992, by and between IVY FUNDS, INC.,
f.k.a. Waddell & Reed Funds, Inc. (hereinafter called “Corporation”),
and Waddell & Reed Investment Management Company, and assigned by
Waddell & Reed Investment Management Company on June 30, 2003 to
Ivy Investment Management Company (hereinafter called “IICO”), f.k.a. Waddell &
Reed Ivy Investment Company, and hereby amended and restated and effective November 16,
2005,

 

WITNESSETH:

 

In consideration of the
mutual promises and agreements herein contained and other good and valuable
consideration, the receipt of which is hereby acknowledged, it is hereby agreed
by and between the parties hereto as follows:

 

                                                I.              In General

 

                                                                IICO
agrees to act as investment adviser to the Corporation with respect to the
investment of its assets and in general to supervise the investments of each
series of the Corporation as set forth in Exhibit A, and as amended from
time to time, subject at all times to the direction and control of the Board of
Directors of the Corporation, all as more fully set forth herein.

 

                                                II.            Duties of IICO with respect to
investment of assets of the Corporation

 

                                                                A.  IICO shall regularly provide investment
advice to the Corporation and shall, subject to the succeeding
provisions of this section, continuously supervise the investment and
reinvestment of cash, securities or other property comprising the assets of the
investment portfolios of the Corporation; and in furtherance thereof, IICO
shall:

 

                                                                                1.  obtain and evaluate pertinent information
about significant developments and economic, statistical and financial data,
domestic, foreign or otherwise, whether affecting the economy generally or one
or more of the portfolios of the Corporation, and whether concerning the
individual companies whose securities are included in one or more of the
Corporation’s portfolios or the industries in which they engage, or with
respect to securities which IICO considers desirable for inclusion in one or
more of the Corporation’s portfolios;

 

                                                                                2.  furnish continuously an investment program
for each of the portfolios of the Corporation;

 

                                                                                3.  determine what securities shall be purchased
or sold by the Corporation;

 

 

 

                                                                                4.  take, on behalf of the Corporation, all
actions which appear to IICO necessary to carry into effect such investment
programs and supervisory functions as aforesaid, including the placing of
purchase and sale orders.

 

                                                                B.  IICO shall make appropriate and regular
reports to the Board of Directors of the Corporation on the actions it takes
pursuant to Section II.A. above. 
Any investment programs furnished by IICO under this section, or any
supervisory function taken hereunder by IICO shall at all times conform to and
be in accordance with any requirements imposed by:

 

                                                                                1.  the provisions of the Investment Company Act
of 1940 and any rules or regulations in force thereunder;

 

                                                                                2.  any other applicable provision of law;

 

                                                                                3.  the provisions of the Articles of
Incorporation of the Corporation as amended from time to time;

 

                                                                                4.  the provisions of the Bylaws of the
Corporation as amended from time to time;

 

                                                                                5.  the terms of the registration statement of
the Corporation, as amended from time to time, under the Securities Act of 1933
and the Investment Company Act of 1940.

 

                                                                C.  Any investment programs furnished by IICO
under this section or any supervisory functions taken hereunder by IICO shall
at all times be subject to any directions of the Board of Directors of the
Corporation, its Executive Committee, or any committee or officer of the
Corporation acting pursuant to authority given by the Board of Directors.

 

                                                III.           Allocation of Expenses

 

                                                                The
expenses of the Corporation and the expenses of IICO in performing its
functions under this Agreement shall be divided into two classes, to wit:  (i) those expenses which will be paid in
full by IICO as set forth in subparagraph “A” hereof, and (ii) those
expenses which will be paid in full by the Corporation, as set forth in
subparagraph “B” hereof.

 

                                                                A.  With respect to the duties of IICO under Section II
above, it shall pay in full, except as to the brokerage and research services
acquired through the allocation of commissions as provided in Section IV
hereinafter, for (a) the salaries and employment benefits of all employees
of IICO who are engaged in providing these advisory services; (b) adequate
office space and suitable office equipment for such employees; and (c) all
telephone 

 

 

2

 

and communications costs
relating to such functions.  In addition, IICO
shall pay the fees and expenses of all directors of the Corporation who are
employees of IICO or an affiliated corporation and the salaries and employment
benefits of all officers of the Corporation who are affiliated persons of IICO.

 

                                                                B.
The Corporation shall pay in full for all of its expenses which are not listed
above (other than those assumed by IICO or one of its affiliates in its
capacity as principal underwriter of the shares of the Corporation, as
Shareholder Servicing Agent or as Accounting Services Agent for the
Corporation), including (a) the costs of preparing and printing
prospectuses and reports to shareholders of the Corporation, including
mailing costs; (b) the costs of printing all proxy statements and all
other costs and expenses of meetings of shareholders of the Corporation (unless
the Corporation and IICO shall otherwise agree); (c) interest, taxes,
brokerage commissions and premiums on fidelity and other insurance; (d) audit
fees and expenses of independent accountants and legal fees and expenses of
attorneys, but not of attorneys who are employees of IICO or an affiliated
company; (e) fees and expenses of its directors not affiliated with
Waddell & Reed, Inc.; (f) custodian fees and expenses; (g) fees
payable by the Corporation under the Securities Act of 1933, the Investment
Company Act of 1940, and the securities or “Blue-Sky” laws of any jurisdiction;
(h) fees and assessments of the Investment Company Institute or any
successor organization; (i) such nonrecurring or extraordinary expenses as
may arise, including litigation affecting the Corporation, and any
indemnification by the Corporation of its officers, directors, employees and
agents with respect thereto; (j) the costs and expenses provided for in
any Shareholder Servicing Agreement or Accounting Services Agreement, including
amendments thereto, contemplated by subsection C of this Section III.  In the event that any of the foregoing shall,
in the first instance, be paid by IICO, the Corporation shall pay the same to
IICO on presentation of a statement with respect thereto.

 

                                                                C.  IICO or an affiliate of IICO, may also act as
(i) transfer agent or shareholder servicing agent of the Corporation
and/or as (ii) accounting services agent of the Corporation if at the time
in question there is a separate agreement, “Shareholder Servicing Agreement”
and/or “Accounting Services Agreement,” covering such functions between the
Corporation and IICO, or such affiliate. 
The corporation, whether IICO, or its affiliate, which is the party to
either such Agreement with the Corporation is referred to as the “Agent.”  Each such Agreement shall provide in substance
that it shall go into effect, or be amended, or a new agreement covering the
same topics between the Corporation and the Agent may be entered into, only if
the terms of such Agreement, such amendment or such new agreement have been
approved by the Board of Directors of the Corporation, including the vote of a
majority of the directors who are not “interested persons” as defined in the
Investment Company Act of 1940, of either party to the Agreement, such
amendment or such new agreement (considering IICO to be such a party even if at
the time in question the Agent is an affiliate of IICO), cast in person at a
meeting called for the purpose of voting on such approval.  Such a vote is referred to as a “disinterested
director” vote.  Each such Agreement shall
also provide in substance for its continuance, unless terminated, for a
specified period which shall not exceed two years from the date of its
execution and from year to year thereafter only if such continuance is
specifically approved at least annually by a disinterested director vote, and
that any disinterested director vote 

 

 

3

 

shall include a
determination that (i) the Agreement, amendment, new agreement or
continuance in question is in the best interests of the Corporation and its
shareholders; (ii) the services to be performed under the Agreement, the
Agreement as amended, new agreement or agreement to be continued are services
required for the operation of the Corporation; (iii) the Agent can provide
services the nature and quality of which are at least equal to those provided
by others offering the same or similar services; and (iv) the fees for
such services are fair and reasonable in light of the usual and customary
charges made by others for services of the same nature and quality.  Any such Agreement may also provide in
substance that any disinterested director vote may be conditioned on the
favorable vote of the holders of a majority (as defined in or under the
Investment Company Act of 1940) of the outstanding shares of each class or
series of the Corporation.  Any such
Agreement shall also provide in substance that it may be terminated by the
Agent at any time without penalty upon giving the Corporation one hundred
twenty (120) days’ written notice (which notice may be waived by the
Corporation) and may be terminated by the Corporation at any time without
penalty upon giving the Agent sixty (60) days’ written notice (which notice may
be waived by the Agent), provided that such termination by the Corporation
shall be directed or approved by the vote of a majority of the Board of
Directors of the Corporation in office at the time or by the vote of the
holders of a majority (as defined in or under the Investment Company Act of
1940) of the outstanding shares of each class or series of the Corporation.

 

                                                IV.           Brokerage

 

                                                                (a) 
IICO may select brokers to effect the portfolio transactions of the Corporation
on the basis of its estimate of their ability to obtain, for reasonable and
competitive commissions, the best execution of particular and related portfolio
transactions.  For this purpose, “best
execution” means prompt and reliable execution at the most favorable price
obtainable.  Such brokers may be selected
on the basis of all relevant factors including the execution capabilities
required by the transaction or transactions, the importance of speed,
efficiency, or confidentiality, and the willingness of the broker to provide
useful or desirable investment research and/or special execution services.  IICO shall have no duty to seek advance
competitive commission bids and may select brokers based solely on its current
knowledge of prevailing commission rates.

 

                                                                (b) 
Subject to the foregoing, IICO shall have discretion, in the interest of
the Corporation, to direct the execution of its portfolio transactions to
brokers who provide brokerage and/or research services (as such services are
defined in Section 28(e) of the Securities Exchange Act of 1934) for
the Corporation and/or other accounts for which IICO or one or more of its
affiliates exercise “investment discretion” (as that term is defined in Section 3(a)(35)
of the Securities Exchange Act of 1934); and in connection with such
transactions, to pay commission in excess of the amount another adequately
qualified broker would have charged if IICO determines, in good faith, that
such commission is reasonable in relation to the value of the brokerage and/or
research services provided by such broker, viewed in terms of either that
particular transaction or the overall responsibilities of IICO and its
investment advisory affiliates with respect to the accounts for which they
exercise investment discretion.  In
reaching such determination, IICO will not be required to attempt to place
a specified dollar amount on the 

 

 

4

 

brokerage and/or research
services provided by such broker; provided that IICO shall be prepared to
demonstrate that such determinations were made in good faith, and that all
commissions paid by the Corporation over a representative period selected by
its Board of Directors were reasonable in relation to the benefits to the
Corporation.

 

                                                V.            Compensation of IICO

 

                                                                As
compensation in full for services rendered and for the facilities and personnel
furnished under sections I, II, and IV of this Agreement, the Corporation
will pay to IICO for each day the fees specified in Exhibit A hereto.

 

                                                                The
amounts payable to IICO shall be determined as of the close of business each
day; shall, except as set forth below, be based upon the value of net assets
computed in accordance with the Articles of Incorporation of the Corporation;
and shall be paid in arrears whenever requested by IICO.  In computing the value of the net assets of
the Corporation, there shall be excluded the amount owed to the Corporation
with respect to shares which have been sold but not yet paid to the Corporation
by Waddell & Reed, Inc.

 

                                                                Notwithstanding
the foregoing, if the laws, regulations or policies of any state in which
shares of the Corporation are qualified for sale limit the operation and
management expenses of the Corporation, IICO will refund to the
Corporation the amount by which such expenses exceed the lowest of such state
limitations.

 

                                                VI.           Undertakings of IICO; Liabilities

 

                                                                IICO
shall give to the Corporation the benefit of its best judgment, efforts and
facilities in rendering advisory services hereunder.

 

                                                                IICO
shall at all times be guided by and be subject to the Corporation’s investment
policies, the provisions of its Articles of Incorporation and Bylaws as each
shall from time to time be amended, and to the decision and determination of
the Corporation’s Board of Directors.

 

                                                                This
Agreement shall be performed in accordance with the requirements of the
Investment Company Act of 1940, the Investment Advisers Act of 1940, the
Securities Act of 1933, and the Securities Exchange Act of 1934, to the extent
that the subject matter of this Agreement is within the purview of such Acts.  Insofar as applicable to IICO, as an
investment adviser and affiliated person of the Corporation, IICO shall
comply with the provisions of the Investment Company Act of 1940, the
Investment Advisers Act of 1940 and the respective rules and regulations
of the Securities and Exchange Commission thereunder.

 

                                                                In
the absence of willful misfeasance, bad faith, gross negligence or reckless
disregard of obligations or duties hereunder on the part of IICO, it shall not
be subject to liability to the Corporation or to any stockholder of the
Corporation for any act or omission in 

 

 

5

 

the course of or
connected with rendering services thereunder or for any losses that may be
sustained in the purchase, holding or sale of any security.

 

                                                VII.          Duration of this Agreement

 

                                                                This
Agreement shall become effective at the start of business on the date hereof
and shall continue in effect, unless terminated as hereinafter provided, for a
period of one year and from year-to-year thereafter only if such continuance is
specifically approved at least annually by the Board of Directors, including
the vote of a majority of the directors who are not parties to this Agreement
or “interested persons” (as defined in the Investment Company Act of 1940) of
any such party, cast in person at a meeting called for the purpose of voting on
such approval, or by the vote of the holders of a majority (as so defined) of
the outstanding voting securities of each class or series of the Corporation
and by the vote of a majority of the directors who are not parties to this
Agreement or “interested persons” (as so defined) of any such party, cast in
person at a meeting called for the purpose of voting on such approval.

 

                                                VIII.        Termination

 

                                                                This
Agreement may be terminated by IICO at any time without penalty upon giving the
Corporation one hundred twenty (120) days’ written notice (which notice may be
waived by the Corporation) and may be terminated by the Corporation at any time
without penalty upon giving IICO sixty (60) days’ written notice (which notice
may be waived by IICO), provided that such termination by the Corporation shall
be directed or approved by the vote of a majority of the Board of Directors of
the Corporation in office at the time or by the vote of a majority (as defined
in the Investment Company Act of 1940) of the outstanding voting securities of
the Corporation.  This Agreement shall
automatically terminate in the event of its assignment, the term “assignment”
for this purpose having the meaning defined in Section 2(a)(4) of the
Investment Company Act of 1940 and the rules and regulations thereunder.

 

IN WITNESS WHEREOF, the
parties hereto have caused the foregoing instrument to be executed by their
duly authorized officers and their corporate seal to be hereunto affixed, all
as of the day and year first above written.

 

	
  (Seal)

  	
   

  	
  IVY FUNDS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Kristen A. Richards

  
	
   

  	
   

  	
   

  	
  Kristen A. Richards

  
	
   

  	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/Megan E. Bray

  	
   

  	
   

  	
   

  
	
   

  	
  Megan E. Bray

  	
   

  	
   

  	
   

  
	
   

  	
  Assistant Secretary

  	
   

  	
   

  	
   

  

 

 

6

 

 

	
  (Seal)

  	
   

  	
  IVY INVESTMENT

  
	
   

  	
   

  	
  MANAGEMENT COMPANY

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/Henry J. Herrmann

  
	
   

  	
   

  	
   

  	
  Henry J. Herrmann

  
	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/Wendy J. Hills

  	
   

  	
   

  	
   

  
	
   

  	
  Wendy Hills

  	
   

  	
   

  	
   

  
	
   

  	
  Secretary

  	
   

  	
   

  	
   

  

 

 

7

 

EXHIBIT A TO
INVESTMENT MANAGEMENT AGREEMENT

 

IVY FUNDS, INC.

 

FEE SCHEDULES

 

A cash fee computed each
day on net asset value for each Fund at the annual rates listed below*:

 

Effective June 30, 1999:

 

Asset Strategy Fund

	
  Net
  Assets

  	
   

  	
  Fee

  
	
  Up to $1 billion

  	
   

  	
  0.70% of net assets

  
	
  Over $1 billion and up
  to $2 billion

  	
   

  	
  0.65% of net assets

  
	
  Over $2 billion and up
  to $3 billion

  	
   

  	
  0.60% of net assets

  
	
  Over $3 billion

  	
   

  	
  0.55% of net assets

  

 

High Income Fund

	
  Net
  Assets

  	
   

  	
  Fee

  
	
  Up to $500 million

  	
   

  	
  0.625% of net assets

  
	
  Over $500 million and
  up to $1 billion

  	
   

  	
  0.60% of net assets

  
	
  Over $1 billion and up
  to $1.5 billion

  	
   

  	
  0.55% of net assets

  
	
  Over $1.5 billion

  	
   

  	
  0.50% of net assets

  

 

Limited-Term Bond Fund

	
  Net
  Assets

  	
   

  	
  Fee

  
	
  Up to $500 million

  	
   

  	
  0.50% of net assets

  
	
  Over $500 million and
  up to $1 billion

  	
   

  	
  0.45% of net assets

  
	
  Over $1 billion and up
  to $1.5 billion

  	
   

  	
  0.40% of net assets

  
	
  Over $1.5 billion

  	
   

  	
  0.35% of net assets

  

 

Municipal Bond
Fund

	
  Net
  Assets

  	
   

  	
  Fee

  
	
  Up to $500 million

  	
   

  	
  0.525% of net assets

  
	
  Over $500 million and
  up to $1 billion

  	
   

  	
  0.50% of net assets

  
	
  Over $1 billion and up
  to $1.5 billion

  	
   

  	
  0.45% of net assets

  
	
  Over $1.5 billion

  	
   

  	
  0.40% of net assets

  

 

 

8

 

Science and Technology Fund

	
  Net
  Assets

  	
   

  	
  Fee

  
	
  Up to $1 billion

  	
   

  	
  0.85% of net assets

  
	
  Over $1 billion and up to $2 billion

  	
   

  	
  0.83% of net assets

  
	
  Over $2 billion and up to $3 billion

  	
   

  	
  0.80% of net assets

  
	
  Over $3 billion

  	
   

  	
  0.76% of net assets

  

 

Small Cap Growth Fund

	
  Net
  Assets

  	
   

  	
  Fee

  
	
  Up to $1 billion

  	
   

  	
  0.85% of net assets

  
	
  Over $1 billion and up
  to $2 billion

  	
   

  	
  0.83% of net assets

  
	
  Over $2 billion and up
  to $3 billion

  	
   

  	
  0.80% of net assets

  
	
  Over $3 billion

  	
   

  	
  0.76% of net assets

  

 

Approved May 17, 2000:

 

Capital Appreciation
Fund

	
  Net
  Assets

  	
   

  	
  Fee

  
	
  Up to $1 billion

  	
   

  	
  0.65% of net assets

  
	
  Over $1 billion and up
  to $2 billion

  	
   

  	
  0.60% of net assets

  
	
  Over $2 billion and up
  to $3 billion

  	
   

  	
  0.55% of net assets

  
	
  Over $3 billion

  	
   

  	
  0.50% of net assets

  

 

Large Cap Growth
Fund

	
  Net
  Assets

  	
   

  	
  Fee

  
	
  Up to $1 billion

  	
   

  	
  0.70% of net assets

  
	
  Over $1 billion and up
  to $2 billion

  	
   

  	
  0.65% of net assets

  
	
  Over $2 billion and up
  to $3 billion

  	
   

  	
  0.60% of net assets

  
	
  Over $3 billion

  	
   

  	
  0.55% of net assets

  

 

Mid Cap Growth
Fund

	
  Net
  Assets

  	
   

  	
  Fee

  
	
  Up to $1 billion

  	
   

  	
  0.85% of net assets

  
	
  Over $1 billion and up
  to $2 billion

  	
   

  	
  0.83% of net assets

  
	
  Over $2 billion and up
  to $3 billion

  	
   

  	
  0.80% of net assets

  
	
  Over $3 billion

  	
   

  	
  0.76% of net assets

  

 

Money Market Fund

A cash fee
computed each day on net asset value for the Fund at the annual rate of 0.40%
of net assets.

 

 

9

 

Approved
11/16/05:

 

Energy
Fund

	
  Net
  Assets

  	
   

  	
  Fee

  
	
  Up to $1 billion

  	
   

  	
  0.85% of net assets

  
	
  Over $1 billion and up to $2 billion

  	
   

  	
  0.83% of net assets

  
	
  Over $2 billion and up to $3 billion

  	
   

  	
  0.80% of net assets

  
	
  Over $3 billion

  	
   

  	
  0.76% of net assets

  

 

Effective 10/1/07:

 

Core Equity Fund

	
  Net
  Assets

  	
   

  	
  Fee

  
	
  Up to $1 billion

  	
   

  	
  0.70% of net assets

  
	
  Over $1 billion and up
  to $2 billion

  	
   

  	
  0.65% of net assets

  
	
  Over $2 billion and up
  to $3 billion

  	
   

  	
  0.60% of net assets

  
	
  Over $3 billion and up
  to $5 billion

  	
   

  	
  0.55% of net assets

  
	
  Over $5 billion and up
  to $6 billion

  	
   

  	
  0.525% of net assets

  
	
  Over $6 billion

  	
   

  	
  0.50% of net assets

  

*If a
Fund’s net assets are less than $25 million, IICO has agreed to
voluntarily waive the management fee, subject to its right to change or modify
this waiver.

 

 

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]