IVY FUND
BUSINESS MANAGEMENT AND INVESTMENT ADVISORY
AGREEMENT SUPPLEMENT
Ivy Bond Fund
Ivy Global Fund
Ivy Short-Term U.S. Government Securities Fund
AGREEMENT made as of the 31st day of December, 1994, by and between Ivy
Fund (the "Fund") and Ivy Management Inc. (the "Manager").
WHEREAS, the Fund is an open-end investment company, organized as a
Massachusetts business trust, and consists of such separate investment
portfolios as have been or may be established and designated by the Trustees of
the Fund from time to time;
WHEREAS, a separate class of shares of the Fund is offered to investors
with respect to each investment portfolio;
WHEREAS, the Fund has adopted a Master Business Management and
Investment Advisory Agreement ("Master Agreement") dated December 31, 1991,
pursuant to which the Fund has appointed the Manager to provide the business
management and investment advisory services specified in that Master Agreement;
and
WHEREAS, Ivy Bond Fund, Ivy Global Fund and Ivy Short-Term U.S.
Government Securities Fund (the "Portfolios") are separate investment portfolios
of the Fund.
NOW, THEREFORE, the Trustees of the Fund hereby take the following
actions, subject to the conditions set forth:
1. As provided for in the Master Agreement, the Fund hereby adopts the
Master Agreement with respect to the Portfolios, and the Manager hereby
acknowledges that the Master Agreement shall pertain to the Portfolios, the
terms and conditions of such Master Agreement being hereby incorporated herein
by reference.
2. The term "Portfolios" as used in the Master Agreement shall, for
purposes of this Supplement, pertain to the Portfolios.
3. As provided in the Master Agreement and subject to further
conditions as set forth therein, Ivy Bond Fund shall pay the Manager a monthly
fee on the first business day of each month based upon the average daily value
(as determined on each business day at the time set forth in the Prospectuses
for determining net asset value per share) of its net assets during the
preceding month at the annual rate of .75% of the first $500 million, .60% of
the next $500 million, and .40% over $1 billion.
4. As provided in the Master Agreement and subject to further
conditions as set forth therein, Ivy Global Fund shall pay the Manager a monthly
fee on the first business day of each month based upon the average daily value
(as determined on each business day at the time set forth in the Prospectuses
for determining net asset value per share) of its net assets during the
preceding month at the annual rate of 1.0% of the first $500 million, and .75%
over $500 million.
5. As provided in the Master Agreement and subject to further
conditions as set forth therein, Ivy Short-Term U.S. Government Securities Fund
shall pay the Manager a monthly fee on the first business day of each month
based upon the average daily value (as determined on each business day at the
time set forth in the Prospectuses for determining net asset value per share) of
its net assets during the preceding month at the annual rate of .6%.
6. This Supplement and the Master Agreement (together, the "Agreement")
shall become effective with respect to the Portfolios as of the date specified
above and unless sooner terminated as hereinafter provided, the Agreement shall
remain in effect with respect to the Portfolios for a period of more than two
(2) years from such date only so long as the continuance is specifically
approved at least annually (a) by the vote of a majority of the outstanding
voting securities of the Portfolios (as defined in the 0000 Xxx) or by the
Fund's entire Board of Trustees and (b) by the vote, cast in person at a meeting
called for that purpose, of a majority of the Fund's Independent Trustees. This
Agreement may be terminated with respect to the Portfolios at any time, without
payment of any penalty, by vote of a majority of the outstanding voting
securities of the Portfolios (as defined in the 0000 Xxx) or by vote of a
majority of the Fund's entire Board of Trustees on sixty (60) days' written
notice to the Manager or by the Manager on sixty (60) days' written notice to
the Fund. This Agreement shall terminate automatically in the event of its
assignment (as defined in the 1940 Act).
IVY FUND,
on behalf of Ivy Bond Fund, Ivy Global Fund and Ivy
Short-Term U.S.
Government Securities Fund
By: /s/ XXXXXXX X. XXXXXX
TITLE: President
IVY MANAGEMENT INC.
By: /s/ XXXXXXX X. XXXXXX
TITLE: President
