Document:

Exhibit 10.19

 

ACCOUNTING SERVICES AGREEMENT

 

THIS
AGREEMENT, effective April 30, 2009, is entered into by and between Ivy
Funds Variable Insurance Portfolios (“Trust”), a Delaware statutory Trust, and
Waddell & Reed Services Company, a Missouri corporation (“WRSCO”).

 

WITNESSETH:

 

WHEREAS,
the Trust wishes to appoint WRSCO to be its Accounting Services Agent and to
perform certain administrative services with respect to each of its series
listed in Appendix A (each, a “Fund”) upon and subject to the terms and
provisions of this Agreement;

 

NOW
THEREFORE, in consideration of the mutual covenants contained in this
Agreement, the parties agree as follows:

 

A.                                 Appointment of WRSCO as Accounting Services
Agent for the Trust; Acceptance.

 

(1) The
Trust hereby appoints WRSCO to act as Accounting Services Agent for the Funds
upon and subject to the terms and provisions of this Agreement.

 

(2) 
WRSCO hereby accepts the appointment as Accounting Services Agent for the Funds
and agrees to act as such, upon and subject to the terms and provisions of this
Agreement.

 

B.                                  Duties of WRSCO.

 

WRSCO
shall perform such duties as set forth in this Paragraph B as agent for and on
behalf of the Trust.

 

(1) 
WRSCO shall at its expense provide bookkeeping and accounting services and assistance,
including, in particular, the following administrative services as are required
by the Funds:

 

a)            maintaining the registration or qualification
of the Funds and their shares under state “Blue Sky” or securities laws and
regulations, provided that the Funds shall pay all related filing fees and
registration or qualification fees;

b)           record each current day’s trading activity and such other proper
bookkeeping entries as are necessary for determining that day’s net asset
values for the Funds, including pricing daily the value of shares of each Fund;

c)            assisting the Funds and third-party
solicitors (if any) in connection with soliciting and gathering shareholder
proxies;

d)           preparing the Funds’ U.S. Federal, state and local income tax returns,
provided that the Funds shall pay all charges for services and expenses of the
Funds’ independent accountants in reviewing such returns;

 

 

 

e)            preparing the financial information for the
Funds’ prospectuses, statements of additional information and periodic reports
to shareholders, provided that the Funds shall pay all charges for services and
expenses of the Funds’ independent registered public accounting firm;

f)               preparing each Fund’s Form N-SAR, Form N-CSR,
Form N-PX and Form N-Q, or such other forms as the Securities and
Exchange Commission (the “SEC”) from time to time may prescribe under the
Investment Company Act of 1940, as amended (the “1940 Act”);

g)            in coordination with the Funds’ legal counsel
preparing and filing with the SEC the Funds’ registration statement (including
prospectuses and statements of additional information), and any amendments or
supplements that may be made from time to time, and preparing and filing with
the SEC notices and proxy materials for meetings of shareholders, provided that
the Funds shall pay all charges for services and expenses of the Funds’ outside
legal counsel;

h)            assisting in the printing of the Funds’
prospectuses, periodic reports to shareholders and proxy materials;

i)                rendering statements or copies of records for
the Funds from time to time as requested by the Trust (see Appendix B);

j)               facilitating audits of accounts by the Trust’s
independent registered public accounting firm or by any other auditors employed
or engaged by the Trust or by any regulatory body with jurisdiction over the
Trust;

k)           computing each Fund’s net asset value per share and, as applicable, its
public offering price, total returns and yields, and notifying the Trust and
such other persons as the Trust may reasonably request of the net asset value
per share, the public offering price and/or the total return yield; and

l)                providing executive, clerical and secretarial
personnel competent to carry out the above responsibilities.

 

(2) 
WRSCO shall maintain and keep current the accounts, books, records, and other
documents relating to the Funds’ financial and portfolio transactions as may be
required by rules and regulations of the SEC adopted under Section 31(a) of
the 1940 Act.

 

(3) 
WRSCO shall cause the subject records of the Funds to be maintained and
preserved pursuant to the requirements under the 1940 Act.

 

(4) 
In pricing daily the value of shares of the Funds, WRSCO may make arrangements
with, and obtain the value of portfolio securities from, pricing services or
quotation services that are compensated by the Funds directly or indirectly
through the placement of portfolio transactions with broker-dealers who provide
such valuation or quotation services to WRSCO.

 

(5) 
WRSCO shall maintain duplicate copies, or information from which copies may be
reconstructed, of the records necessary to the preparation of the Funds’
financial statements and valuations of its assets.  Such duplicate copies or information shall be
maintained

 

 

2

 

at
a location other than where WRSCO performs its normal duties hereunder so that
in the event the records established and maintained pursuant to the foregoing
provisions of this Section B are damaged or destroyed, WRSCO shall be able
to provide the bookkeeping and accounting services and assistance specified in
this Section B.

 

(6) 
In the event any of WRSCO’s facilities or equipment necessary for the
performance of its duties hereunder is damaged, destroyed or rendered
inoperable by reason of fire, vandalism, riot, natural disaster or otherwise,
WRSCO will use its best efforts to restore all services hereunder to the Funds
and will not seek from the Funds additional compensation to repair or replace
damaged or destroyed facilities or equipment. 
WRSCO shall also make and maintain arrangements for emergency use of
alternative facilities for use in the event of the aforesaid destruction of or
damage to its facilities.

 

C.                                 Compensation of WRSCO.

 

For
the services performed by WRSCO hereunder, each Fund agrees to pay to WRSCO the
amount set forth in Appendix C.

 

D.                                 Right of the Trust to Inspect and Ownership
of Records.

 

The
Trust will have the right under this Agreement to perform on-site inspection of
records and accounts, and audits directly pertaining to the Funds’ accounting
and portfolio records maintained by WRSCO hereunder at WRSCO’s facilities.  WRSCO will cooperate with the Trust’s
independent registered public accounting firm or representatives of appropriate
regulatory agencies and furnish all reasonably requested records and data.  WRSCO acknowledges that these records are the
property of the Trust, and that it will surrender to the Trust all such records
promptly on request.

 

E.                                   Standard of Care; Indemnification.

 

WRSCO
will at all times exercise due diligence and good faith in performing its
duties hereunder.  WRSCO will make every
reasonable effort and take all reasonably available measures to assure the
adequacy of its personnel, facilities and equipment as well as the accurate  performance of all services to be performed
by it hereunder within, at a minimum, the time requirements of any applicable
statutes, rules or regulations and in conformity with the Trust’s Trust
Instrument, By-laws and representations made in the Trust’s current
registration statement as filed with the SEC.

 

WRSCO
shall not be responsible for, and the Trust agrees to indemnify WRSCO for, any
losses, damages or expenses (including reasonable counsel fees and
expenses)  (i) resulting from any
claim, demand, action or suit not resulting from WRSCO’s failure to exercise
good faith or due diligence and arising out of or in connection with WRSCO’s
duties on behalf of the Funds hereunder; (ii) for any delay, error or
omission by reason of circumstances beyond its control, including acts of civil
or military authority, national emergencies, labor difficulties (except with
respect to WRSCO’s employees), fire, mechanical breakdown beyond its control,

 

 

3

 

flood
catastrophe, acts of God, insurrection, war, riots or failure beyond its
control of transportation, communication or power supply; or (iii) for any
action taken or omitted to be taken by WRSCO in good faith in reliance on the
accuracy of any information provided to it by the Trust or its Trustees or in
reliance on any advice of counsel who may be internally employed counsel or
outside counsel for the Trust or advice of any independent accountant or expert
employed by the Trust with respect to the preparation and filing of any
document with a governmental agency or authority.

 

In
order for the rights to indemnification to apply, it is understood that if in
any case the Trust may be asked to indemnify or hold WRSCO harmless, the Trust
shall be advised of all pertinent facts concerning the situation in question,
and it is further understood that WRSCO will use reasonable care to identify
and notify the Trust promptly concerning any situation which presents or
appears likely to present a claim for indemnification against the Trust.  The Trust shall have the option to defend
WRSCO against any claim which may be the subject of this indemnification and,
in the event that the Trust so elects, it will so notify WRSCO, and thereupon
the Trust shall take over complete defense of the claim, and WRSCO shall sustain
no further legal or other expenses in such situation for which WRSCO shall seek
indemnification under this paragraph. 
WRSCO will in no case confess any claim or make any compromise in any
case in which the Trust will be asked to indemnify WRSCO except with the Trust’s
prior written consent.

 

F.                                   Term of the Agreement; Taking Effect;
Amendments.

 

This
Agreement shall become effective as to each Fund on the date hereof and shall
continue, unless terminated as hereinafter provided, for a period of one (1) year
and from year-to-year thereafter, provided that such continuance shall be
specifically approved as provided below.

 

This
Agreement shall go into effect, or may be continued, or may be amended, or a
new agreement covering the same topics between the Trust and WRSCO may be
entered into only as to a Fund if the terms of this Agreement, such
continuance, the terms of such amendment or the terms of such new agreement
have been approved by the Board of Trustees of the Trust, including the vote of
a majority of the trustees who are not “interested persons,” as defined in the
1940 Act, of either party to this Agreement, the agreement to be continued,
amendment or new agreement, cast in person at a meeting called for the purpose
of voting on such approval.  Such a vote
is hereinafter referred to as a “disinterested trustee vote.”

 

Any
disinterested trustee’s vote shall, in favor of continuance, amendment or
execution of a new agreement, include a determination that (i) the
Agreement, amendment, new agreement or continuance in question is in the best
interests of each affected 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) WRSCO 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

 

 

4

 

fair
and reasonable in the light of the usual and customary charges made by others
for services of the same nature and quality.

 

Nothing
herein contained shall prevent any disinterested trustee vote from being
conditioned on the favorable vote of the holders of a majority of the
outstanding voting securities (as defined in or under the 1940 Act) of a Fund.

 

G.                                 Termination.

 

(1) 
This Agreement may be terminated as to a Fund by WRSCO at any time without
penalty upon giving the Trust at least one hundred twenty (120) days’ written
notice (which notice may be waived by the Trust ) and may be terminated as to a
Fund by the Trust at any time without penalty upon giving WRSCO at least sixty
(60) days’ written notice (which notice may be waived by WRSCO), provided that
such termination by the Trust shall be directed or approved by the vote of a
majority of the Board of Trustees of the Trust in office at the time or by the
vote of the majority of the outstanding voting securities (as defined in or
under the 1940 Act) of the Fund.

 

(2) 
On termination, WRSCO will deliver to the Trust or its designee all files,
documents and records of the affected Fund used, kept or maintained by WRSCO in
the performance of its services hereunder, including such of the Fund’s records
in machine readable form as may be maintained by WRSCO, as well as such summary
and/or control data relating thereto used by or available to WRSCO.

 

(3) 
In addition, on such termination or in preparation therefore at the request of
the Trust and at the Trust’s expense, WRSCO shall provide, to the extent that
its capabilities then permit, such documentation, personnel and equipment as
may be reasonably necessary in order for a new agent or the Trust to fully
assume and commence to perform the agency functions described in this Agreement
with a minimum disruption to each affected Fund’s activities.

 

(4) 
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 of the SEC.

 

 

(The remainder of
this page intentionally left blank)

 

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed on the date and year first above written.

 

 

5

 

	
   

  	
   

  	
  IVY
  FUNDS VARIABLE INSURANCE PORTFOLIOS

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Henry J. Herrmann

  	
   

  
	
   

  	
   

  	
   

  	
  Henry
  J. Herrmann, President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Mara Herrington

  	
   

  	
   

  
	
   

  	
  Mara Herrington, Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WADDELL &
  REED SERVICES COMPANY

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael D. Strohm

  	
   

  
	
   

  	
   

  	
   

  	
  Michael
  D. Strohm, President

  
	
   

  	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Wendy J. Hills

  	
   

  	
   

  
	
   

  	
  Wendy J. Hills, Secretary

  	
   

  	
   

  
						

 

 

6

 

APPENDIX A

 

 

List of Funds

 

Ivy Funds VIP Asset Strategy

Ivy Funds VIP Balanced

Ivy Funds VIP Bond

Ivy Funds VIP Core Equity

Ivy Funds VIP Dividend Opportunities

Ivy Funds VIP Energy

Ivy Funds VIP Global Natural Resources

Ivy Funds VIP Growth

Ivy Funds VIP High Income

Ivy Funds VIP International Growth

Ivy Funds VIP International Value

Ivy Funds VIP Micro Cap Growth

Ivy Funds VIP Mid Cap Growth

Ivy Funds VIP Money Market

Ivy Funds VIP Mortgage Securities

Ivy Funds VIP Real Estate Securities

Ivy Funds VIP Science and Technology

Ivy Funds VIP Small Cap Growth

Ivy Funds VIP Small Cap Value

Ivy Funds VIP Value

Ivy Funds VIP Pathfinder Aggressive

Ivy Funds VIP Pathfinder Moderately Aggressive

Ivy Funds VIP Pathfinder Moderate

Ivy Funds VIP Pathfinder Moderately Conservative

Ivy Funds VIP Pathfinder Conservative

 

 

7

 

APPENDIX B

 

Standard Reports and Availability

 

 

The
following reports will be provided to the Trust on a regular basis with
availability as indicated:

 

A.                                 Daily

 

1.                                    Printed Trial Balance

2.                                    Net Asset Value Worksheet

3.                                    Cash Forecast

4.                                    Yield Computation, if applicable

 

B.                                  Weekly - Tax Lot Ledgers

 

C.                                 Monthly

 

1.                                    Tax Lot Ledgers as of month-end

2.                                    Working Appraisal as on month-end

3.                                    Purchase and Sale Journal for the month

4.                                    Summary of Gains and Losses on Securities for
the month

5.                                    Dividend Ledger for the month (Receivable as
of month-end and earned)

6.                                    Interest Income Analysis for the month
(receivable as of month-end and earned)

7.                                    Trial Balance as of month-end

8.                                    Net Asset Value Worksheet as of month-end

9.                                    Open Trades (payable and receivable for
unsettled securities transactions)

 

D.                                 Annually

 

1.                                    Purchase and Sale Journal for the year

2.                                    Summary of Gains and Losses on Securities for
the year

3.                                    Broker Allocation Report for the year

 

 

8

 

APPENDIX C

 

Compensation Schedule

 

 

1.                                    Each Fund, other than a
Pathfinder Fund

 

Each
Fund, other than a Pathfinder Fund, agrees to pay to WRSCO for its services
under the Agreement an amount payable on the first day of the month as shown on
the following table pertinent to the average daily net assets of the Fund
during the prior month:

 

	
   

  	
  Fund’s
  Average Daily Net Assets for the Month

  	
   

  	
  Monthly Fee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  $    0 -
  $   10 million

  	
   

  	
  $         0

  
	
   

  	
  $  10 - $   25
  million

  	
   

  	
  $     958

  
	
   

  	
  $  25 - $   50
  million

  	
   

  	
  $  1,925

  
	
   

  	
  $  50 - $ 100
  million

  	
   

  	
  $  2,958

  
	
   

  	
  $100 - $ 200 million

  	
   

  	
  $  4,033

  
	
   

  	
  $200 - $ 350 million

  	
   

  	
  $  5,267

  
	
   

  	
  $350 - $ 550 million

  	
   

  	
  $  6,875

  
	
   

  	
  $550 - $ 750 million

  	
   

  	
  $  8,025

  
	
   

  	
  $750 - $   1.0 billion

  	
   

  	
  $10,133

  
	
   

  	
  $1.0 billion and over

  	
   

  	
  $12,375

  

 

In
addition, for each class of shares in excess of one, each Fund shall pay to
WRSCO a monthly per-class fee equal to 2.5% of the monthly base fee.

 

Each
Fund shall also pay a monthly fee to WRSCO at the annual rate of 0.01% or one
basis point for the first $1 billion of net assets with no fee charged for net
assets in excess of $1 billion.  This fee
may be voluntarily waived until Fund assets are at least $10 million.

 

2.                                    Ivy Funds VIP Pathfinder Aggressive,
Ivy Funds VIP Pathfinder Moderately Aggressive, Ivy Funds VIP Pathfinder
Moderate, Ivy Funds VIP Pathfinder Moderately Conservative and Ivy Funds VIP
Pathfinder Conservative

 

Each
Pathfinder Fund agrees to pay to WRSCO for its services under the Agreement an
amount payable on the first day of the month as shown on the following table
pertinent to the average daily net assets of the Fund during the prior month:

 

	
  Fund’s Average Daily Net Assets for the Month

  	
   

  	
  Monthly Fee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  $   0 -
  $  10 million

  	
   

  	
  $            0

  
	
   

  	
  $ 10 - $  25
  million

  	
   

  	
  $   479.00

  
	
   

  	
  $ 25 - $  50
  million

  	
   

  	
  $   962.50

  
	
   

  	
  $ 50 - $100 million

  	
   

  	
  $1,479.00

  

 

 

9

 

	
   

  	
  $100 - $200 million

  	
   

  	
  $2,016.50

  
	
   

  	
  $200 - $350 million

  	
   

  	
  $2,633.50

  
	
   

  	
  $350 - $550 million

  	
   

  	
  $3,437.50

  
	
   

  	
  $550 - $750 million

  	
   

  	
  $4,012.50

  
	
   

  	
  $750 - $  1.0
  billion

  	
   

  	
  $5,066.50

  
	
   

  	
  $1.0 billion and over

  	
   

  	
  $6,187.50

  

 

In
addition, for each class of shares in excess of one, each Pathfinders Fund
shall pay to WRSCO a monthly per-class fee equal to 1.25% of the monthly base
fee.

 

Each
Pathfinder Fund shall also pay a monthly fee to WRSCO at the annual rate of
0.01% or one basis point for the first $1 billion of net assets with no fee
charged for net assets in excess of $1 billion. 
This fee may be voluntarily waived until Fund assets are at least $10
million.

 

 

10Exhibit 10.21

 

 

INVESTMENT MANAGEMENT AGREEMENT

 

 

THIS
AGREEMENT, effective as of January 30, 2009, by and between Waddell &
Reed Advisors Funds (the “Trust”) and Waddell & Reed Investment
Management Company (“WRIMCO”), with respect to each series of the Trust listed
in Appendix A (each, a “Fund”).

 

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 each 
Fund with respect to the investment of its assets and in general to
supervise the investments of each Fund, subject at all times to the direction
and control of the Board of Trustees of the Trust, all as more fully set forth
herein.

 

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

 

A.  WRIMCO shall regularly provide investment
advice to each 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 portfolios
of each Fund; and in furtherance thereof, WRIMCO shall as to each Fund:

 

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 Fund, and whether concerning the individual
companies whose securities are included in the Fund’s portfolios 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 Fund;

 

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

 

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
sell orders.

 

B.  WRIMCO shall make appropriate and regular
reports to the Board of Trustees of the Trust 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 Investment Company Act
of 1940 Act, as amended (“1940 Act”) and any rules or regulations in force
thereunder;

 

2.  any other applicable provision of law;

 

3.  the provisions of the Trust Instrument of the
Trust as amended from time to time;

 

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

 

5.  the terms of the registration statements of
the Trust, 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 Trustees of the
Trust, its Executive Committee, or any committee or officer of the Trust acting
pursuant to authority given by the Board of Trustees.

 

III.          Allocation of Expenses

 

The
expenses of the Trust 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 each 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 trustees of the Trust who are employees of WRIMCO or an
affiliated corporation and the salaries and employment benefits of all officers
of the Trust who are affiliated persons of WRIMCO.

 

B.  The Funds shall pay in full for all of their
respective 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 each of the Funds, as Shareholder Servicing Agent or as
Accounting Services Agent for the Funds), including (a) the costs of
preparing and printing prospectuses and reports to shareholders of the Funds,
including mailing costs; (b) the costs of printing all proxy statements
and all other costs and expenses of meetings of shareholders of the Funds
(unless the Trust and WRIMCO shall otherwise agree); (c) interest, taxes,
brokerage commission 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 trustees not affiliated with WRIMCO
or its affiliates; (f) custodian fees and expenses; (g) fees payable
by the Trust and/or the Funds 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 

 

 

2

 

Institute
or any successor organization; (i) such nonrecurring or extraordinary
expenses as may arise, including litigation affecting the Trust and/or the
Funds, and any indemnification by the Trust 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, a 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 each Fund of
the Trust and/or as (ii) accounting services agent of each Fund of the
Trust if at the time in question there is a separate agreement, “Shareholder
Servicing Agreement” and/or “Accounting Services Agreement,” covering such
functions between the Trust and WRIMCO or such affiliate.  The corporation, whether WRIMCO or its
affiliate, which is the party to such Agreement with the Trust 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 Trust and the Agent be
entered into as to a Fund, unless the terms of such Agreement, such amendment
or such new agreement have been approved by the Board of Trustees of the Trust,
including the vote of a majority of the trustees 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
trustee” 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 trustee vote, and that
any disinterested trustee vote shall include a determination that (i) the
Agreement, amendment, new agreement or continuance in question is in the best
interests of each affected 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 trustee 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 or series of the Trust.  Any such Agreement shall also provide in
substance that it may be terminated as to a Fund by the Agent at any time
without penalty upon giving the Trust one hundred twenty (120) days’ written
notice (which notice may be waived by the Trust) and may be terminated as to a
Fund by the Trust 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 Trust shall be directed or approved by the vote of a
majority of the Board of Trustees of the Trust 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 or series of the Trust.

 

 

3

 

IV.         Brokerage

 

A.  WRIMCO may select brokers to effect the
portfolio transactions of each 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 Funds, 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 Funds 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 Funds over a representative period selected by
the Trust’s Board of Trustees were reasonable in relation to the benefits to
the Funds.

 

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, each Fund will
pay to WRIMCO for each day the fees specified in Appendix B 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 Trust Instrument; and shall be paid in arrears
whenever requested by WRIMCO.  In
computing the value of the net assets of each 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.

 

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

 

 

4

 

VI.         Undertakings of WRIMCO; Liabilities

 

WRIMCO
shall give to the Trust 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 each Fund’s investment
policies, the provisions of the Trust Instrument and Bylaws of the Trust as
each shall from time to time be amended, and to the decision and determination
of the Trust’s Board of Trustees.

 

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 Trust, 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 Trust or to any shareholder of the Funds (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 as to a Fund, 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
Trustees, including the vote of a majority of the trustees 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 defined in the
1940 Act) of the outstanding voting securities of the Fund.

 

VIII.      Termination

 

This
Agreement may be terminated as to a Fund by WRIMCO at any time without penalty
upon giving the Trust one hundred twenty (120) days’ written notice (which
notice may be waived by the Trust) and may be terminated as to a Fund by the
Trust 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 Trust shall be directed or approved by the vote of a majority of the
Board of Trustees of the Trust 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 affected 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.

 

 

5

 

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 

  
	
   

  	
   

  	
   

  	
  FUNDS

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Mara Herrington

  	
   

  
	
   

  	
   

  	
   

  	
  Mara
  Herrington

  
	
   

  	
   

  	
   

  	
  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

 

 

APPENDIX A

TO INVESTMENT MANAGEMENT AGREEMENT

 

 

Waddell &
Reed Advisors Accumulative Fund

Waddell &
Reed Advisors Asset Strategy Fund

Waddell &
Reed Advisors Bond Fund

Waddell &
Reed Advisors Cash Management

Waddell &
Reed Advisors Continental Income Fund

Waddell &
Reed Advisors Core Investment Fund

Waddell &
Reed Advisors Dividend Opportunities Fund

Waddell &
Reed Advisors Energy Fund

Waddell &
Reed Advisors Global Bond Fund

Waddell &
Reed Advisors Government Securities Fund

Waddell &
Reed Advisors High Income Fund

Waddell &
Reed Advisors International Growth Fund

Waddell &
Reed Advisors Municipal Bond Fund

Waddell &
Reed Municipal High Income Fund

Waddell &
Reed Advisors New Concepts Fund

Waddell &
Reed Advisors Science and Technology Fund

Waddell &
Reed Advisors Small Cap Fund

Waddell &
Reed Advisors Tax-Managed Equity Fund

Waddell &
Reed Advisors Value Fund

Waddell &
Reed Advisors Vanguard Fund

 

 

7

 

APPENDIX B

TO INVESTMENT MANAGEMENT AGREEMENT

 

 

WADDELL & REED ADVISORS FUNDS

 

FEE SCHEDULE

 

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

 

	
  Advisors Accumulative 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

  
	
   

  	
   

  
	
  Advisors 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

  
	
   

  	
   

  
	
  Advisors Bond Fund

  	
   

  
	
  Net Assets

  	
  Fee

  
	
  Up to $1 billion

  	
  0.475%
  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

  
	
   

  	
   

  
	
  Advisors Cash Management

  	
   

  
	
  Net Assets

  	
  Fee

  
	
   

  	
  0.40%
  of net assets

  
	
   

  	
   

  
	
  Advisors Continental Income
  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

  
	
   

  	
   

  
	
  Advisors Core Investment 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

  

 

 

8

 

	
  Over $5 billion and up to $6 billion

  	
  0.525%
  of net assets

  
	
  Over $6 billion

  	
  0.50%
  of net assets

  
	
   

  	
   

  
	
  Advisors Dividend Opportunities
  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

  
	
   

  	
   

  
	
  Advisors 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

  
	
   

  	
   

  
	
  Advisors Global Bond 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

  
	
   

  	
   

  
	
  Advisors Government Securities
  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

  
	
   

  	
   

  
	
  Advisors 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

  
	
   

  	
   

  
	
  Advisors International 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

  
	
   

  	
   

  
	
  Advisors Municipal Bond Fund

  	
   

  
	
  Net Assets

  	
  Fee

  

 

 

9

 

	
  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

  
	
   

  	
   

  
	
  Advisors Municipal High Income
  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

  
	
   

  	
   

  
	
  Advisors New Concepts 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

  
	
   

  	
   

  
	
  Advisors Retirement Shares

  	
   

  
	
  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

  
	
   

  	
   

  
	
  Advisors 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

  
	
   

  	
   

  
	
  Advisors Small Cap 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

  
	
   

  	
   

  
	
  Advisors Tax-Managed Equity
  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

  

 

 

10

 

	
  Advisors Value 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

  
	
   

  	
   

  
	
   

  	
   

  
	
  Advisors Vanguard 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

  

 

 

*If
the Fund’s net assets are less than $25 million, Waddell & Reed
Investment Management Company has agreed to waive the management fee, subject
to its right to change or modify this waiver.

 

 

11

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