UNDERWRITING AGREEMENT
AGREEMENT made this 12th day of August, 1987, by and between FBL VARIABLE
INSURANCE SERIES FUND, an unincorporated business trust organized under the laws
of the Commonwealth of Massachusetts (the "Fund"), and FBL INVESTMENT ADVISORY
SERVICES, INC., a Delaware corporation (the "Underwriter").
W I T N E S S E T H:
WHEREAS, the Fund is registered under the Investment Company Act of 1940, as
amended (the "1940 Act"), as a diversified open-end investment company and
proposes to offer its shares continuously, pursuant to a prospectus (as now
constituted or hereafter amended or supplemented, the "Prospectus"), to the
separate accounts ("Accounts") of Farm Bureau Life Insurance Company and Utah
Farm Bureau Life Insurance Company, and of other affiliated and non-affiliated
insurance companies (collectively, the "Participating Insurance Companies"), to
fund the benefits under Variable Life Insurance Policies and Variable Annuity
Contracts issued by the Participating Insurance Companies; and
WHEREAS, the Fund currently is comprised of six separate portfolios
(together with and additional portfolios which may from time to time be
established by the Fund, herein referred to as the "Portfolios"), each of which
pursues its investment objectives through separate investment policies; and
WHEREAS, the Underwriter is a broker-dealer registered under the Securities
Exchange Act of 1934 and is a member of the National Association of Securities
Dealers, Inc.; and
WHEREAS, the Fund and the Underwriter wish to enter into an agreement with
each other with respect to the continuous offering to the Accounts of the Fund's
transferable shares of beneficial interest, without par value ("Shares"), in
order to promote the growth of the Fund and to facilitate the distribution of
the Shares.
NOW, THEREFORE, is consideration of the premises and mutual covenants herein
continued the parties hereto agree as follows:
1. APPOINTMENT OF THE UNDERWRITER
The Fund hereby appoints the Underwriter as the principal underwriter and
distributor of the Fund to sell its shares to the Accounts, and the Underwriter
hereby accepts such appointment. The Fund during, the term of this Agreement
shall sell its Shares to the Accounts pursuant to orders obtained by the
Underwriter, at the net asset value for each Portfolio determined in the manner
set forth in the Prospectus, and upon the terms and conditions set forth below.
No commission or other fee shall be charged or paid to any person or entity in
connection with the sale of the Shares hereunder,
2. EXCLUSIVE NATURE OF DUTIES
The Underwriter shall be the exclusive representative of the Fund to act as
principal underwriter and distributor.
3. SALE AND REDEMPTION OF SHARES OF THE FUND
(a) Orders for the purchase and redemption of Shares (and payment for
Shares, in the case of a purchase) shall be transmitted directly from the
Accounts to the Fund or its agent.
(b) The Fund shall sell and redeem Shares of each Portfolio at the net asset
value per share of such Portfolio, determined in accordance with the method set
forth in the Prospectus.
(c) The Fund shall have the right to suspend the redemption of Shares of any
of its Portfolios pursuant to the conditions set forth in the prospectus. The
Fund shall also have the right to suspend the sale of Shares of any or all of
its Portfolios at any time when it is authorized to suspend redemption of such
Shares, or at any other time when there shall have occurred an extraordinary
event or circumstance which, in the reasonable judgment of the Fund, makes it
impracticable or inadvisable to continue to sell any such shares.
(d) The Fund shall give the Underwriter prompt notice of any such suspension
and shall promptly furnish such other information in connection with the sale
and redemption of Shares as the Underwriter may reasonably request.
(e) The Fund (or its agent) will make appropriate book entries upon receipt
by the Fund (or its Agent) of orders and payments for Shares or requests for
redemption thereof, and will issue and redeem Shares and confirm such
transactions in accordance with applicable laws and regulations.
4. INTERESTS IN AND OF THE UNDERWRITER
It is understood that any of the shareholders, trustees, officers,
employees, and agents of the Fund may be a shareholder, director, trustee,
officer, employee, or agent of, or be otherwise interested in, the Underwriter,
any affiliated person of the Underwriter, any organization in which the
Underwriter may have an interest or any organization which may have an interest
in the Underwriter; that the Underwriter, any such affiliated person, or any
such organization may have an interest in the Fund; and that the existence of
any such dual interest shall not affect the validity hereof or any transaction
hereunder except as otherwise provided in the Declaration of Trust or By-laws of
the Fund, or in the Articles of Incorporation or By-laws of the Underwriter, or
by specific provisions of applicable law.
5. DUTIES OF THE FUND
(a) The Fund shall furnish to the Underwriter copies of all information,
financial statements, and other papers which the Underwriter may reasonably
request for use in connection with the distribution of the Shares.
(b) The Fund shall take, from time to time, subject to the necessary
approval of its shareholders, all necessary action to register Shares under the
Securities Act of 1933 in order that there will be available for sale such
number of Shares of each Portfolio as may reasonably be expected to be sold and
issued.
(c) The Fund shall use its best efforts to qualify and maintain the
qualification of an appropriate number of Shares of each of its Portfolios for
sale under the securities laws of such states as the Underwriter and the Fund
may approve, if such qualification is required by such securities laws. Any such
qualification may be withheld, terminated, or withdrawn by the Fund at any time
in its discretion.
(d) The Fund will furnish to the Underwriter, in reasonable quantities upon
request by the Underwriter, copies of annual and interim reports of the Fund.
(e) The Fund shall promptly notify the Underwriter if the registration or
qualification of any Shares under any state or federal securities laws, or the
Fund's registration under the 1940 Act, is suspended or terminated, or if any
governmental body or agency institutes proceedings to terminate the offer and
sale of any Shares in any jurisdiction.
6. DUTIES OF THE UNDERWRITER
(a) The Underwriter shall be subject to the direction and control of the
Fund in the sale of the Shares and shall not be obligated to sell any specific
number of Shares of any Portfolios. In selling the Shares of the Fund, the
Underwriter shall use its best efforts in all respects to conform with the
requirements of all federal and state laws and regulations, and the regulations
of the National Association of Securities Dealers, Inc., relating to the sale of
such securities. The Underwriter is not authorized by the Fund to give any
information
or make any representations, other than those contained in the Registration
Statement for the Fund and its Shares, the Prospectus, and any sales literature
specifically approved by the Fund.
(b) The Underwriter shall act as an independent contractor and nothing
herein shall constitute the Underwriter, its agents or representatives, or
employees thereof, as employees of the Fund in connection with the sale of
Shares. The Underwriter is responsible for its own conduct and the employment,
control, and conduct of its agents and employees and for injury to such agents
or employees or to others through its agents or employees. The Underwriter
assumes full responsibility for its agents and employees under applicable
statutes and agrees to pay all employer taxes thereunder. Nothing contained in
this Agreement shall prevent the Underwriter from entering into underwriting
arrangements with other investment companies.
(c) The Underwriter will indemnify and save harmless the Fund from any
damage or expense on account of any wrongful act by the Underwriter or any
employee, representative, or agent of the Underwriter.
(d) The Underwriter will observe and be bound by all the provisions of the
Declaration of Trust and By-Laws of the Fund, the Prospectus, and any
fundamental policies adopted by the Fund pursuant to the 1940 Act, notice of
which shall have been given by the Fund to the Underwriter, which at the time in
any way require, limit, restrict, or prohibit, or otherwise regulate, any action
on the part of the Underwriter.
7. PAYMENT OF EXPENSES
(a) The Fund shall bear all costs and expenses of the Fund incurred in
connection with (i) the registration of the Shares under federal and state
securities laws; (ii) the preparation (including typesetting), printing, and
mailing of annual Prospectuses to existing shareholders; (iii) the preparation,
printing, and mailing of any notice, proxy statement, report, supplemental
Prospectus, or other communications to shareholders; and (iv) the printing and
mailing of confirmations of purchases of Shares. The Fund will also pay all
expenses incident to the issuance of the Shares.
(b) The Underwriter will pay all expenses incident to the sale and
distribution of the Shares issued or sold hereunder, including, without limiting
the generality of the foregoing, all expenses incurred in connection with: (i)
the printing (but not typesetting) and distribution of Prospectuses and
Statements of Additional Information to other than existing shareholders; and
(ii) the preparation, printing, and distribution or dissemination of any reports
or other literature, advertising, and selling aids in connection with the
offering of the Shares for sale (except that such expenses do not include
expenses incurred by the Fund in connection with the preparation, printing, and
distribution of any report or other communication to shareholders in their
capacity as such).
8. DURATION AND TERMINATION OF THIS AGREEMENT
This Agreement shall become effective as of the date first written above
and, unless terminated earlier as described in the following paragraph, shall
remain in force thereafter so long as its continuance is approved at least
annually by (a) the vote of a majority of the Trustees who are not parties to
this Agreement or "interested persons" of any such party cast in person at a
meeting called for the purpose of voting on such approval, and (b) either (i)
the vote of a majority of the Trustees, or (ii) the vote of a majority of the
outstanding voting securities of the Fund.
This Agreement may be terminated by either party upon six months' advance
written notice to the other party. This Agreement shall terminate automatically
in the event of its assignment.
The terms "vote of a majority of the outstanding voting securities,"
"assignment," and "interested person," when used in the Agreement, shall have
the respective meanings specified in the 1940 Act.
9. NOTICES
Any notice under this Agreement shall be in writing, addressed and delivered
or mailed, postage prepaid, to the other party at such address as such other
party may designate for the receipt of such notice.
10. GOVERNING LAW
This Agreement shall be construed in accordance with the laws of the State
of Iowa and the applicable provisions of the 1940 Act. To the extent the
applicable law of the State of Iowa, or any of the provisions herein, conflict
with the applicable provisions of the 1940 Act, the latter shall control.
11. PERSONAL LIABILITY
The Underwriter understands that the obligations of the Fund under this
Agreement are not binding upon any shareholders or trustees of the Fund
personally, but bind only the Fund and the Fund's property. The Underwriter
represents that it has notice of the provisions of the Declaration of Trust of
the Fund disclaiming shareholder and trustee liability for acts or obligations
of the Fund.
IN WITNESS WHEREOF, the Fund and the Underwriter have each caused this
Agreement to be executed on its behalf by an officer thereunto duly authorized
and its corporate and trust seals to be affixed on the day and year first above
written.
FBL VARIABLE INSURANCE SERIES FUND
By: /s/ Xxxxxxx X. Xxxx
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By: /s/ Xxxxxx X. Xxxxxx
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FBL INVESTMENT ADVISORY SERVICES, INC.
By: /s/ Xxxxxxx X. Xxxx
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