Document:

Exhibit 10.20

 

IVY FUNDS, INC.

DISTRIBUTION AND SERVICE PLAN

FOR CLASS A, CLASS B, CLASS C, CLASS E, CLASS R
AND CLASS Y SHARES

 

 

This
Amended and Restated Distribution and Service Plan is adopted by Ivy Funds, Inc.
(the “Company”) on behalf of each series of the Company (each, a “Fund” and
collectively, the “Funds”), pursuant to Rule 12b-1 under the Investment
Company Act of 1940, as amended (the “Act”) to provide for payment by the
Company of certain expenses in connection with the: (a) distribution of the
Company’s Class A shares, provision of personal services to the Company’s Class A
shareholders and the service and maintenance of Class A shareholder
accounts; (b) distribution of the Company’s Class B shares, provision
of personal services to the Company’s Class B shareholder accounts and/or
maintenance of its Class B shareholder accounts; (c) distribution of
the Fund’s Class C shares and the services and maintenance of Class C
shareholder accounts; (d) distribution of the Company’s Class E
shares and the service and maintenance of Class E shareholder accounts; (e) distribution
of each of the Ivy Large Cap Growth Fund, Ivy Mid Cap Growth Fund, Ivy Small
Cap Growth Fund and Ivy Science and Technology Fund’s Class R shares and
the services and maintenance of Class R shareholder accounts; and (f) distribution
of the Company’s Class Y shares and the service and maintenance of Class Y
shareholder accounts.

 

I.  CLASS A

 

With
respect to each Fund except Ivy Money Market Fund, the Company is authorized to
pay to Ivy Fund Distributors, Inc. (“IFDI”) an amount not to exceed on an
annual basis 0.25 of 1% of a Fund’s average net assets of the Class A
shares as either (1) a “distribution fee” to finance the distribution of
the Fund’s Class A shares, (2) a “service fee” to finance shareholder
servicing by IFDI, its affiliated companies, broker-dealers who may sell Class A
shares and other third-parties to encourage and foster the maintenance of Class A
shareholder accounts, or as a combination of the two fees.  The amounts shall be payable to IFDI daily or
at such other intervals as the Board of Directors may determine.

 

II.  CLASS B

 

Distribution Fee

 

With
respect to each Fund, the Company is authorized to pay to IFDI an amount not to
exceed on an annual basis 0.75 of 1% of a Fund’s average net assets of its Class B
shares as a “distribution fee” to finance the distribution of a Fund’s Class B
shares payable to IFDI daily or at such other intervals as the Board of
Directors may determine.

 

Service Fee

 

With
respect to each Fund, the Company is authorized to pay to IFDI an amount not to
exceed on an annual basis 0.25 of 1% of each Fund’s average net assets of its Class B
shares as a “service fee”to finance shareholder servicing by IFDI or its
affiliated companies to encourage and foster the maintenance of shareholder
accounts of a Fund’s Class B shares. 
The amounts shall be payable to IFDI daily or at such other intervals as
the Board of Directors may determine.

 

 

III.  CLASS C

 

Distribution Fee

 

With
respect to each Fund, the Company is authorized to pay to IFDI an amount not to
exceed on an annual basis 0.75 of 1% of each Fund’s average net assets of its Class C
shares as a “distribution fee” to finance the distribution of that Fund’s Class C
shares payable to IFDI daily or at such other intervals as the Board of
Directors may determine.

 

Service Fee

 

With
respect to each Fund, the Company is authorized to pay to IFDI an amount not to
exceed on an annual basis 0.25 of 1% of each Fund’s average net assets of its Class C
shares as a “service fee” to finance shareholder servicing by IFDI or its
affiliated companies to encourage and foster the maintenance of shareholder
accounts of the particular Fund’s Class C shares.  The amounts shall be payable to IFDI daily or
at such other intervals as the Board of Directors may determine.

 

I.  CLASS E

 

With
respect to each Fund except Ivy Money Market Fund and Ivy Municipal Bond Fund,
the Company is authorized to pay to IFDI an amount not to exceed on an annual
basis 0.25 of 1% of a Fund’s average net assets of the Class E shares as
either (1) a “distribution fee” to finance the distribution of the Fund’s Class E
shares, (2) a “service fee” to finance shareholder servicing by IFDI, its
affiliated companies, broker-dealers who may sell Class E shares and other
third-parties to encourage and foster the maintenance of Class E
shareholder accounts, or as a combination of the two fees.  The amounts shall be payable to IFDI daily or
at such other intervals as the Board of Directors may determine.

 

IV.  CLASS R

 

Distribution and Service Fee

 

With
respect to Ivy Large Cap Growth Fund, Ivy Mid Cap Growth Fund, Ivy Small Cap
Growth Fund and Ivy Science and Technology Fund, the Company is authorized to
pay to IFDI an amount not to exceed on an annual basis 0.50 of 1% of a Fund’s
average net assets of its Class R shares as either (1) a “distribution
fee” to finance the distribution of a Fund’s Class R shares or (2) a “service
fee” to finance shareholder servicing by IFDI or its affiliated companies to encourage
and foster the maintenance of shareholder accounts of a Fund’s Class R
shares.  The amounts shall be payable to
IFDI daily or at such other intervals as the Board of Directors may determine.

 

IV.  CLASS Y

 

Distribution Fee

 

With
respect to each Fund, subject to the limitation on total plan fees set forth
below, the Company is authorized to pay to IFDI an amount not to exceed on an
annual basis 0.25 of 1% of each Fund’s average net assets of its Class Y
shares as a “distribution fee” to finance the distribution of that Fund’s Class Y
shares payable to IFDI daily or at such other intervals as the Board of
Directors may determine.

 

 

Service Fee

 

With
respect to each Fund, subject to the limitation on total plan fees set forth
below, the Company is authorized to pay to IFDI an amount not to exceed on an
annual basis 0.25 of 1% of each Fund’s average net assets of its Class Y
shares as a “service fee” to finance shareholder servicing by IFDI or its
affiliated companies to encourage and foster the maintenance of shareholder
accounts of the particular Fund’s Class Y shares.  The amounts shall be payable to IFDI daily or
at such other intervals as the Board of Directors may determine.

 

Limitation of Total Plan Fees

 

With
respect to each Fund, the Company is authorized to pay both a distribution fee
and a service fee to IFDI provided that the total amount of fees paid to IFDI
pursuant to this Plan shall not exceed on an annual basis 0.25 of 1% of the
average net assets of that Fund’s Class Y shares.

 

V.  NASD
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 applicable Class of shares of
each Fund and does not include the service fee. 
The service fee may be considered a payment made by the Company with
respect to each Fund for personal service and/or maintenance of the shareholder
accounts of the applicable Class of shares, provided, however, if the
National Association of Securities Dealers, Inc. (“NASD”), adopts a definition
of “service fee” for purposes of Article III Section 26(b) of
its Rules of Fair Practice that differs from the definition of “service
fee” as used herein, or if the NASD 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 NASD definition.

 

VI.  QUARTERLY REPORTS

 

Any
person authorized to direct the disposition of monies paid or payable by a Fund
pursuant to the Plan or any related agreement shall provide to the Board of
Directors of the Company, and the Board of Directors shall review at least
quarterly, a written report of the amounts so expended of the distribution fee
and the service fee paid to IFDI under this Plan with respect to each Class of
shares of each Fund and the purposes for which such expenditures were made with
respect to such Class of shares of each Fund.

 

VII.  APPROVAL OF PLAN

 

This
Plan shall not become effective as to a Class or Fund until it has been
approved by a vote of at least a majority (as defined in the Act) of the
outstanding voting securities of the affected Class or the Fund.  With respect to the submission of the Plan
for such a vote, it shall have been effectively approved with respect to a Class of
shares of a Fund if a majority of the outstanding voting securities of the Class of
shares of the Fund votes for approval of the Plan, notwithstanding that the
matter has not been approved by a majority of the outstanding voting securities
of the Company or any other Fund or Class of shares.

 

The
Plan shall not become effective as to a Class or Fund until it has been
approved by a vote of the Board of Directors of the Company and by the
Directors who are not interested persons of the Company and have no direct or
indirect financial interest in the operation of the Plan or any agreement
related to this Plan (other than as Directors or shareholders of the Company) (“Independent
Directors”) cast in person at a meeting called for the purpose of voting on
such Plan and any related agreements.

 

 

VIII.  CONTINUANCE

 

This
Plan shall continue in effect as to each Fund and each Class of shares for
a period of one (1) year and thereafter from year to year only so long as
such continuance is approved by the Directors, including the Independent
Directors, as specified hereinabove for the adoption of the Plan by the
Directors and Independent Directors with respect to that Class of shares
of that Fund.

 

IX.  TERMINATION

 

This
Plan may be terminated at any time by a vote of a majority of the Independent
Directors as to any Fund or Class of shares by a vote of the majority of
the outstanding shares of that Class or Fund without penalty.  On termination, the payment of all
distribution and service fees shall cease, and the Company shall have no
obligation to IFDI to reimburse it for any expenditure it has made or may make
to distribute a Fund’s Class of shares or services shareholder accounts of
a particular Class of shares.

 

X.  AMENDMENTS

 

This
Plan may not be amended to increase materially the amount to be spent for
distribution or services without approval by the shareholders of the affected Class of
shares of the affected Fund, and all material amendments of this Plan must be
approved in the manner prescribed for the adoption of the Plan by the Board of
Directors and Independent Directors as provided hereinabove.  The distribution and service fees may,
however, be reduced by action of the Board of Directors without shareholder
approval.

 

XI.  RELATED AGREEMENTS

 

Any
agreement related to the Plan shall be in writing and shall provide: (a) that
such agreement may be terminated at any time as to a Fund or Class of
shares, without payment of any penalty, by vote of a majority of the
Independent Directors or by vote of a majority of the outstanding voting
securities of a Fund or Class of shares, on not more than sixty (60) days’
written notice to any other party to the agreement; and (b) that such
agreement shall terminate automatically in the event of its assignment.

 

XII.  DIRECTORS

 

While
this Plan is in effect, the selection and nomination of Independent Directors
shall be committed to the discretion of the Independent Directors.

 

XIII.  RECORDS

 

The
Company shall preserve copies of the Plan, any related agreement and any report
made pursuant to paragraph VI hereof, for a period of not less than six (6) years
from the date of the Plan, such agreement or report, as the case may be, the
first two (2) years of which shall be in an easily accessible place.

 

XIV.  SEVERABILITY

 

The
provisions of this Plan are severable with respect to each Class of shares
and each Fund.

 

XV. 
LIMITATION OF LIABILITY

 

It
is understood and expressly stipulated that neither the holders of shares of a
Fund nor any Director, officer, agent or employee of the Company shall be
personally liable hereunder, nor shall any resort be 

 

 

had
to other private property for the satisfaction of any claim or obligation
hereunder, but the Company only shall be liable.

 

IN WITNESS WHEREOF, the Company has adopted this
Amended and Restated Distribution and Service Plan as of this 29th day of
November, 2006.

 

	
   

  	
  IVY
  FUNDS, INC.

  
	
   

  	
   

  
	
   

  	
  By
   /s/ Henry J. Herrmann

  	
   

  
	
   

  	
  Henry
  J. Herrmann, PresidentExhibit 10.21

 

W&R
TARGET FUNDS, INC.

SERVICE
PLAN

 

Adopted August 21,
1998, Revised May 16, 2001

 

 

This Plan is adopted by
W&R Target Funds, Inc. (the “Fund”), pursuant to Rule 12b-1 under
the Investment Company Act of 1940, as amended (the “Act”), to provide for
payment by each series (“Portfolio”) of the Fund of certain expenses in
connection with the provision of personal services to the owners of variable
life insurance policies or variable annuity contracts funded by Portfolio
shares (“Policies”) and/or maintenance of the accounts of such Policies (“Policyowners”).  Payments under the Plan are to be made to
Waddell & Reed, Inc. (“W&R”).

 

Service Fee

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

 

NASD Definition

The “service fee” shall
be considered a payment made by the Portfolio for personal service and/or
maintenance of Policyowner accounts, as such is now defined by the National
Association of Securities Dealers, Inc. (“NASD”), provided, however, if
the NASD adopts a definition of “service fee” for purposes of Rule 2830
and the NASD Conduct Rules that differs from the definition of “service
fee” as presently used, or if the NASD 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 NASD definition.

 

Quarterly Reports

W&R shall provide to
the board of directors of the Fund, and the board of directors shall review, at
least quarterly a written report of the amounts so expended of the 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 Portfolio when it has been approved by a vote of at least a
majority of that Portfolio’s outstanding voting securities (as defined in the
Act) and by a vote of the board of directors of the Fund and of the directors
who are not interested persons of the Fund and have no direct or indirect
financial interest in the operation of the Plan or any agreement related to
this Plan (other than as directors of the Fund or as Policyowners) (“independent
directors”) 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 directors, including the
independent 

 

 

directors, as specified
hereinabove for the adoption of the Plan by the directors and independent
directors.

 

Director Continuation

In considering whether to
adopt, continue or implement this Plan, the directors 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 an informed determination of
whether this Plan should be adopted, implemented or continued.

 

Termination

This Plan may be terminated
at any time by a vote of a majority of the independent directors of the Fund
or, as to a Portfolio, by a vote of the majority of the outstanding voting
securities of that Portfolio without penalty. 
On termination, the payment of all service fees shall cease, and the
Fund shall have no obligation to W&R to reimburse it for any cost or
expenditure it has made or may make to service Policyowner accounts.

 

Amendments

This Plan may not be
amended to increase materially the amount to be spent by a Portfolio for
personal service and/or maintenance of Policyowner accounts without approval of
the shareholders of that Portfolio, and all material amendments of this Plan
must be approved in the manner prescribed for the adoption of the Plan as
provided hereinabove.

 

Directors

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

 

Records

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

 

 

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