IDEX II SERIES FUND
ADMINISTRATIVE SERVICES AGREEMENT
FOR THE IDEX II GLOBAL PORTFOLIO SERIES
This Agreement is entered into as of April 22, 1992 by and between IDEX
MANAGEMENT, INC., a Delaware corporation ("Idex Management"), and
INTERSECURITIES, INC., a Delaware corporation (the "Distributor").
WHEREAS, Idex Management has entered into a Management and Investment
Advisory Agreement (referred to herein as the "Advisory Agreement"), dated April
22, 1992 with IDEX II Series Fund, a Massachusetts business trust (referred to
herein as the "Trust"), under which Idex Management has agreed, among other
things, to provide management and administrative services to a certain series of
shares of beneficial interest in the Trust, namely, IDEX II Global Portfolio
(the "Portfolio").
WHEREAS, the Advisory Agreement provides that Idex Management may engage
the Distributor to furnish it with management and administrative services to
assist Idex Management in carrying out certain of its functions under the
Advisory Agreement.
WHEREAS, it is the purpose of this Agreement to express the mutual
agreement of the parties hereto with respect to the services to be provided by
the Distributor to Idex Management and the terms and conditions under which such
services will be rendered.
NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth herein, the parties hereto agree as follows:
1. SERVICES OF THE DISTRIBUTOR. The Distributor shall provide executive and
management services to Idex Management and the Portfolio. Subject to the overall
supervision of Idex Management and the Trust, the Distributor shall furnish to
the Portfolio the services of executive and administrative personnel to
supervise the performance of all administrative, recordkeeping, shareholder
relations, regulatory reporting and compliance, and all other functions of the
Portfolio other than the investment function, and shall supervise and coordinate
the Trust's Custodian and its Transfer Agent and monitor their services to the
Portfolio. The Distributor shall also assist Idex Management and the Portfolio
in maintaining communications and relations with shareholders of the Portfolio,
answer shareholder inquiries or supervise such activity by the Trust's transfer
agent, assist in preparation of reports to shareholders of the Portfolio and
prepare sales literature promoting the sale of the Portfolio shares as requested
by Idex Management and the Portfolio. The Distributor shall provide the
Portfolio with necessary office space, telephones and other communications
facilities. Upon the request of Idex Management, the Distributor shall also
perform such administrative and clerical functions, including recordkeeping and
bookkeeping functions, daily pricing of the Portfolio shares and preparation of
reports and returns, as Idex
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Management reasonably requests; provided that Idex Management shall reimburse
the Distributor at least monthly for all costs and expenses reasonably incurred
by the Distributor in connection with the performance of such functions.
2. OBLIGATIONS OF IDEX MANAGEMENT. Idex Management shall have the following
obligations under this Agreement:
(a) to provide the Distributor with access to all information, documents
and records of and about the Portfolio that are necessary to permit the
Distributor to carry out its functions and responsibilities under this
Agreement;
(b) to furnish the Distributor with a certified copy of any financial
statement or report prepared for the Portfolio by certified or independent
accountants, and with copies of any financial statements or reports made by the
Portfolio to its shareholders or to any governmental body or securities
exchange;
(c) to compensate the Distributor for its services under this Agreement by
the payment of fees equal to (i) 50% of the fees received by Idex Management
pursuant to Section 5 of the Advisory Agreement for services rendered by Idex
Management to the Portfolio during the term of this Agreement, less (ii) 100% of
any amount reimbursed to the Portfolio by Idex Management pursuant to the
provisions of Section 7 of the Advisory Agreement and 50% of any amount
reimbursed to the Portfolio by Idex Management pursuant to the provisions of
Section 7 of the Advisory Agreement to the extent that such reimbursement
exceeds the aforesaid amount paid by the Portfolio to Idex Management. In the
event that this Agreement shall be effective for only part of a period to which
any such fee received by Idex Management is attributable, then an appropriate
proration of the fee that would have been payable hereunder if this Agreement
had remained in effect until the end of such period shall be made, based on the
number of calendar days in such period and the number of calendar days during
the period in which this Agreement was in effect. The fees payable to the
Distributor hereunder shall be payable upon receipt by Idex Management from the
Portfolio of fees payable to Idex Management under Section 5 of the Advisory
Agreement.
(d) the fees payable to the Distributor under paragraph (c) above shall,
notwithstanding the provisions of paragraph (c), be subject to reduction as
follows: If on December 31 of 1992 and each year thereafter ("Target Date") the
aggregate actual net assets on that date of the Trust, IDEX Fund, IDEX Fund 3,
IDEX Total Income Trust and any other registered investment company sponsored by
Idex Management, containing the name IDEX or with respect to which Idex
Management acts as investment adviser or administrator, and to which Janus
Capital Corporation ("Janus Capital") provides investment advice (the "Advised
Funds") are less that the applicable Target Net Assets specified in Table 1
below, then Idex Management shall pay to Janus Capital a percentage, as
specified in Table 2 below, of the Net Fee otherwise payable to the Distributor
pursuant to paragraph (c) above.
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Table 1
Advised Funds
Target Date Target Net Assets
December 31, 1992 $700 million
December 31, 1993 (and $950 million
December 31 of each
year thereafter)
The percentage of the Net Fee otherwise payable to the Distributor pursuant to
paragraph (c) above that is instead payable to Janus Capital shall be determined
by the percentage that on the applicable Target Date the aggregate actual net
assets of the Advised Funds are less than the applicable Target Net Assets of
the Advised Funds ("Shortfall of Target") in accordance with Table 2 below:
Table 2
Shortfall of Target Percentage of Net Fee
5% - 10% 10%
Over 10% - 20% 20%
Over 20% - 30% 30%
Over 30% 40%
No fees shall be payable to Janus Capital and no reduction in the fees
payable to the Distributor under this paragraph (d) shall be made for any year
if, for the five-year period ending December 31 of the preceding year, the
respective total returns of a majority of the Advised Funds that have the
objective of investing primarily in equity securities with such a five-year
record (and with respect to which Janus Capital shall have provided investment
advice for all of such five years and for the then current year) are not in the
top one-third of their respective fund categories as determined by Lipper
Analytical Services, Inc. or its successor (or if no successor exists, by a
mutually agreed upon statistical service).
3. INVESTMENT COMPANY ACT COMPLIANCE. In performing services hereunder, the
Distributor shall at all times comply with the applicable provisions of the
Investment Company Act of 1940 and any other federal state securities laws.
4. PURCHASE BY AFFILIATES. Neither the Distributor nor any of its officers
or Directors shall take a long or short position in the securities issued by the
Portfolio. This prohibition, however, shall not prevent the purchase from the
Portfolio of shares issued by the Portfolio to the officers and Directors of the
Distributor (or deferred benefit plans established for their benefit) at the
current price available to the public, or at such price with reductions in sales
charge as may be permitted by the Portfolio's current prospectus, in accordance
with Section 22
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of the Investment Company Act of 1940.
5. TERM AND TERMINATION. This Agreement shall continue in effect until
terminated pursuant to the provisions hereof. This Agreement shall terminate
automatically upon the termination of the Advisory Agreement. This Agreement may
be terminated at any time, without penalty, by Idex Management or by the Trust
by giving 60 days' written notice of such termination to the Distributor at its
principal place of business, or may be terminated at any time by the Distributor
by giving 60 days' written notice of such termination to the Trust and Idex
Management at their respective principal places of business.
6. ASSIGNMENT. This Agreement shall terminate automatically in the event of
any assignment (as that term is defined in Section 2(a)(4) of the Investment
Company Act of 1940, as amended) of this Agreement.
7. AMENDMENTS. This Agreement may be amended only by written instrument
signed by the parties hereto.
8. PRIOR AGREEMENTS. This agreement supersedes all prior agreements between
the parties relating to the subject matter hereof, and all such prior agreements
are deemed terminated upon the effectiveness of this agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.
ATTEST: INTERSECURITIES, INC.
/S/ XXXXXXX X. XXXXXX /S/ XXXX X. XXXXXX
_____________________________ By: _____________________________
Xxxxxxx X. Xxxxxx Xxxx X. Xxxxxx
Secretary Chairman of the Board
ATTEST: IDEX MANAGEMENT, INC.
/S/ XXXXXXX X. XXXXXX /S/ G. XXXX XXXXXX
_____________________________ By: _____________________________
Xxxxxxx X. Xxxxxx, G. Xxxx Xxxxxx
Secretary President and Chief
Executive Officer
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