Document:

Exhibit 10.40

 

DISTRIBUTION AND SERVICE PLAN

FOR CLASS B SHARES

 

Effective January 30, 2009

 

 

This
Plan is adopted by Waddell & Reed Advisors Funds(the “Trust”), on
behalf of each series of the Trust (each, a “Fund”), pursuant to Rule 12b-1
under the Investment Company Act of 1940, as amended (the “Act”) to provide for
payment by the Trust of certain expenses in connection with the distribution of
each Fund’s Class B shares, provision of personal services to such Fund’s Class B
shareholders and/or maintenance of its Class B shareholder accounts.  Payments under the Plan are to be made to
Waddell & Reed, Inc. (“W&R”) which serves as the principal
underwriter for the Trust under the terms of the Underwriting Agreement
pursuant to which W&R offers and sells the Class B shares of each
Fund.

 

Distribution
Fee

With
respect to each Fund, the Trust is authorized to pay to W&R an amount not
to exceed on an annual basis .75 of 1% of the Fund’s average net assets of its Class B
shares as a “distribution fee” to finance the distribution of the Fund’s Class B
shares payable to W&R daily or at such other intervals as the board of
trustees may determine.

 

Service
Fee

With
respect to each Fund, the Trust is authorized to pay to W&R an amount not
to exceed on an annual basis .25 of 1% of the Fund’s average net assets of its Class B
shares as a “service fee” to finance shareholder servicing by W&R or its
affiliated companies, broker-dealers who may sell the Fund’s Class B
shares and other third parties to encourage and foster the maintenance of
shareholder accounts of the Fund’s Class B shares.  The amounts shall be payable to W&R daily
or at such other intervals as the board of trustees may determine.

 

FINRA
Definition

For
purposes of this Plan, the “distribution fee” may be considered as a sales
charge that is deducted from the net assets of the Class B shares of each
Fund and does not include the service fee. 
The “service fee” shall be considered a payment made by the Trust for
personal service and/or maintenance of the Fund’s Class B shareholder
accounts, as such is now defined by the Financial Industry Regulatory Authority
(“FINRA”), provided, however, if FINRA adopts a definition of “service fee” for
purposes of Rule 2830 of the FINRA Conduct Rules that differs from
the 

 

 

 

definition
of “service fee” as presently used, or if FINRA adopts a related definition
intended to define the same concept, the definition of “service fee” as used
herein shall be automatically amended to conform to the FINRA definition.

 

Quarterly
Reports

W&R
shall provide to the board of trustees of the Trust and the board of trustees
shall review at least quarterly a written report of the amounts so expended of
the distribution fee and/or service fee paid or payable to it under this Plan
and the purposes for which such expenditures were made.

 

Approval
of Plan

This
Plan shall become effective as to a Fund when it has been approved by a vote of
at least a majority of the outstanding Class B voting securities (as
defined in the Act) of that Fund and by a vote of the board of trustees of the
Trust and of the trustees who are not interested persons of the Trust and have
no direct or indirect financial interest in the operation of the Plan or any
agreement related to this Plan (other than as trustees or shareholders of the
Trust) (“independent trustees”) cast in person at a meeting called for the
purposes of voting on such Plan.

 

Continuance

This
Plan shall continue in effect for a period of one (1) year and thereafter
from year to year only so long as such continuance is approved by the trustees,
including the independent trustees, as specified hereinabove for the adoption
of the Plan by the trustees and independent trustees.

 

Trustee
Continuation

In
considering whether to adopt, continue or implement this Plan, the trustees
shall have a duty to request and evaluate, and W&R shall have a duty to
furnish, such information as may be reasonably necessary to make an informed
determination of whether this Plan should be adopted, implemented or continued.

 

Termination

This
Plan may be terminated as to a Fund at any time by a vote of a majority of the
independent trustees of the Trust or by a vote of the majority of the
outstanding Class B voting securities of that Fund without penalty.  On termination as to a Fund, the payment of
all distribution fees and service fees shall cease, and the Trust shall have no
obligation to W&R to reimburse it for any cost or expenditure it has made
or may make to distribute the Fund’s Class B shares or service the Fund’s Class B
shareholder accounts.

 

 

2

 

Amendments

This
Plan may not be amended to increase materially the amount to be spent for
distribution of a Fund’s Class B shares, personal service and/or
maintenance of shareholder accounts without approval of the Class B
shareholders of that Fund, and all material amendments of this Plan must be
approved in the manner prescribed for the adoption of the Plan as provided
hereinabove.  The distribution and
service fees may be reduced by action of the board of trustees without
shareholder approval.

 

Trustees

While
this Plan is in effect, the selection and nomination of the trustees who are
not interested persons of the Trust shall be committed to the discretion of the
trustees who are not interested persons of the Trust.

 

Records

Copies
of this Plan, the Underwriting Agreement and reports made pursuant to this Plan
shall be preserved as provided in Rule 12b-1(f) under the Act.

 

 

3Exhibit 10.41

 

DISTRIBUTION AND SERVICE PLAN

FOR CLASS C SHARES

 

Effective January 30, 2009

 

 

This
Plan is adopted by Waddell & Reed Advisors Funds (the “Trust”), on
behalf of each series of the Trust (each, a “Fund”), pursuant to Rule 12b-1
under the Investment Company Act of 1940, as amended (the “Act”) to provide for
payment by the Trust of certain expenses in connection with the distribution of
each Fund’s Class C shares, provision of personal services to such Fund’s Class C
shareholders and/or maintenance of its Class C shareholder accounts.  Payments under the Plan are to be made to
Waddell & Reed, Inc. (“W&R”) which serves as the principal
underwriter for the Trust under the terms of the Underwriting Agreement
pursuant to which W&R offers and sells the Class C shares of each
Fund.

 

Distribution
Fee

With
respect to each Fund, the Trust is authorized to pay to W&R an amount not
to exceed on an annual basis .75 of 1% of the Fund’s average net assets of its Class C
shares as a “distribution fee” to finance the distribution of the Fund’s Class C
shares payable to W&R daily or at such other intervals as the board of
trustees may determine.

 

Service
Fee

With
respect to each Fund, the Trust is authorized to pay to W&R an amount not
to exceed on an annual basis .25 of 1% of the Fund’s average net assets of its Class C
shares as a “service fee” to finance shareholder servicing by W&R or its
affiliated companies, broker-dealers who may sell the Fund’s Class C
shares and other third-parties to encourage and foster the maintenance of
shareholder accounts of the Fund’s Class C shares.  The amounts shall be payable to W&R daily
or at such other intervals as the board of trustees may determine.

 

FINRA
Definition

For
purposes of this Plan, the “distribution fee” may be considered as a sales
charge that is deducted from the Class C net assets of each Fund and does
not include the service fee.  The “service
fee” shall be considered a payment made by the Trust for personal service
and/or maintenance of the Fund’s Class C shareholder accounts, as such is
now defined by the Financial Industry Regulatory Authority (“FINRA”) ,
provided, however, if FINRA adopts a definition of “service fee” for purposes
of Rule 2830 of the FINRA Conduct Rules that differs from the
definition of “service fee” as presently used, or if FINRA adopts a related
definition 

 

 

 

intended
to define the same concept, the definition of “service fee” as used herein
shall be automatically amended to conform to the FINRA definition.

 

Quarterly
Reports

W&R
shall provide to the board of trustees of the Trust and the board of trustees
shall review at least quarterly a written report of the amounts so expended of
the distribution fee and/or service fee paid or payable to it under this Plan
and the purposes for which such expenditures were made.

 

Approval
of Plan

This
Plan shall become effective as to a Fund when it has been approved by a vote of
at least a majority of the outstanding Class C voting securities of that
Fund (as defined in the Act) and by a vote of the board of trustees of the
Trust and of the trustees who are not interested persons of the Trust and have
no direct or indirect financial interest in the operation of the Plan or any
agreement related to this Plan (other than as trustees or shareholders of the
Trust) (“independent trustees”) cast in person at a meeting called for the
purposes of voting on such Plan.

 

Continuance

This
Plan shall continue in effect for a period of one (1) year and thereafter
from year to year only so long as such continuance is approved by the trustees,
including the independent trustees, as specified hereinabove for the adoption
of the Plan by the trustees and independent trustees.

 

Trustee
Continuation

In
considering whether to adopt, continue or implement this Plan, the trustees
shall have a duty to request and evaluate, and W&R shall have a duty to
furnish, such information as may be reasonably necessary to make an informed
determination of whether this Plan should be adopted, implemented or continued.

 

Termination

This
Plan may be terminated as to a Fund at any time by a vote of a majority of the
independent trustees of the Trust or by a vote of the majority of the
outstanding Class C voting securities of that Fund without penalty.  On termination as to a Fund, the payment of
all distribution fees and service fees shall cease, and the Trust shall have no
obligation to W&R to reimburse it for any cost or expenditure it has made
or may make to distribute the Fund’s Class C shares or service the Fund’s Class C
shareholder accounts.

 

 

2

 

Amendments

This
Plan may not be amended to increase materially the amount to be spent for
distribution of a Fund’s Class C shares, personal service and/or
maintenance of shareholder accounts without approval of the Class C
shareholders of that Fund, and all material amendments of this Plan must be
approved in the manner prescribed for the adoption of the Plan as provided
hereinabove.  The distribution and
service fees may be reduced by action of the board of trustees without
shareholder approval.

 

Trustees

While
this Plan is in effect, the selection and nomination of the trustees who are
not interested persons of the Trust shall be committed to the discretion of the
trustees who are not interested persons of the Trust.

 

Records

Copies
of this Plan, the Underwriting Agreement and reports made pursuant to this Plan
shall be preserved as provided in Rule 12b-1(f) under the Act.

 

 

3

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