SECURITY FUNDS
RULE 22C-2 SHAREHOLDER INFORMATION AGREEMENT
This Agreement is made as of April 16, 2007, or such other compliance date
mandated by Rule 22c-2 under the Investment Company Act of 1940 ("RULE 22C-2"),
by and between Security Distributors, Inc. ("SDI") and Security Benefit Life
Insurance Company ("INTERMEDIARY").
WHEREAS, SDI is the principal underwriter for the Security Funds; and
WHEREAS, the "SECURITY FUNDS" consist of Series of SBL Fund, Security
Equity Fund, Security Income Fund, Security Large Cap Value Fund and Security
Mid Cap Growth Fund; and
WHEREAS, Rule 22c-2 requires the Security Funds (or their principal
underwriter or transfer agent on the Funds' behalf) to enter into a Shareholder
Information Agreement with each financial intermediary, as defined by Rule
22c-2; and
WHEREAS, Intermediary currently sells shares or otherwise maintains
accounts which hold shares for the benefit of a shareholder or shareholders of
the Security Funds;
NOW THEREFORE, in consideration of the foregoing and the mutual promises
set forth below, the parties agree as follows:
1. DEFINITIONS. For purposes of this Agreement:
A. The term "FUND" includes the Security Funds and SDI. The term does not
include any money market fund.
B. The term "SHARES" means the interests of Shareholders corresponding to
the redeemable securities of record issued by the Security Funds that are held
by the Intermediary.
C. The term "SHAREHOLDER" means the beneficial owner of Shares, whether the
Shares are held directly or by the Intermediary in nominee name.
D. For retirement recordkeepers, the term "SHAREHOLDER" means the Plan
participant notwithstanding that the Plan may be deemed to be the beneficial
owner of Shares.
E. For insurance companies, the term "SHAREHOLDER" means the holder of
interests in a variable annuity or variable life insurance contract issued by
the Intermediary.
F. The term "WRITTEN" includes electronic writing and facsimile
transmissions.
2. AGREEMENT TO PROVIDE INFORMATION. Intermediary agrees to provide the
Fund, upon written request, the taxpayer identification number ("TIN"), if
known, of any or all Shareholder(s) of the account and the amount, date, name or
other identifier of any investment professional(s) associated with the
Shareholder(s) or account (if known), and transaction type (purchase,
redemption, transfer, or exchange) of every purchase, redemption, transfer, or
exchange of Shares held through an account maintained by the Intermediary during
the period covered by the request.
A. PERIOD COVERED BY REQUEST. Requests shall set forth a specific period
for which transaction information is sought, which will generally not exceed
twelve (12) months of transaction information. The Fund will not request
transaction information older than twelve (12) months from the date of the
request unless the Fund deems it necessary to investigate compliance with
policies established by the Fund for the purpose of eliminating or reducing any
dilution of the value of the outstanding shares issued by the Fund.
B. FORM AND TIMING OF RESPONSE. Intermediary agrees to transmit the
requested information that is on its books and records to the Fund or its
designee promptly, but in any event not later than ten (10) business days or
such other time as agreed to by the Fund, after receipt of a request. If the
requested information is not on the Intermediary's books and records,
Intermediary agrees to (within the time period designated above): (i) provide or
arrange to provide to the Fund the requested information from shareholders who
hold an account with an indirect intermediary, or (ii) if directed by the Fund,
block further purchases of fund shares from such indirect intermediary. In such
instances, Intermediary agrees to inform the Fund whether it plans to perform
(i) or (ii). Responses required by this paragraph must be communicated in
writing and in a format mutually agreed upon by the parties. To the extent
practicable, the format for any transaction information provided to the Fund
should be consistent with the NSCC Standardized Data
Reporting Format. For purposes of this provision, an "indirect intermediary" has
the same meaning as in Rule 22c-2 under the Investment Company Act of 1940.
C. LIMITATIONS ON USE OF INFORMATION. The Fund agrees not to use the
information received for marketing or any other similar purpose without the
prior written consent of the Intermediary.
3. AGREEMENT TO RESTRICT TRADING. Intermediary agrees to execute written
instructions from the Fund to restrict or prohibit further purchases or
exchanges of Shares by a Shareholder that has been identified by the Fund as
having engaged in transactions of the Fund's Shares (directly or indirectly
through the Intermediary's account) that violate policies established by the
Fund for the purpose of eliminating or reducing any dilution of the value of the
outstanding Shares issued by the Fund.
A. FORM OF INSTRUCTIONS. Instructions must include the TIN, if known, and
the specific restriction(s) to be executed. If the TIN is not known, the
instructions must include an equivalent identifying number of the Shareholder(s)
or account(s) or other agreed upon information to which the instruction relates.
B. TIMING OF RESPONSE. Intermediary agrees to execute instructions as soon
as reasonably practicable, but not later than five (5) business days after
receipt of the instructions by the Intermediary.
C. CONFIRMATION BY INTERMEDIARY. Intermediary must provide written
confirmation to the Fund that instructions have been executed. Intermediary
agrees to provide confirmation as soon as reasonably practicable, but not later
than ten (10) business days after the instructions have been executed.
4. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
between the parties with respect to the subject matter hereof. This Agreement
supersedes, and the terms of this Agreement govern, any other prior agreement
with respect to the subject matter hereof.
5. CHOICE OF LAW. This Agreement shall be construed in accordance with the
Investment Company Act of 1940 and the laws of the state of Kansas, without
regard to the choice of law provisions thereof.
IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the date first written above.
SECURITY DISTRIBUTORS, INC. INTERMEDIARY
/s/ Xxxxxxx Xxxxxx
By:_________________________
Name: Xxxx Xxxxxx Name: ____________________
Title: President Title: _____________________
Date: ______________________
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