INVESTMENT ADVISORY CONTRACT
THIS AGREEMENT, made this 27th day of March, 1987, between SECURITY INCOME FUND,
a Kansas corporation (hereinafter referred to as the "Fund"), and SECURITY
MANAGEMENT COMPANY, a Kansas corporation (hereinafter referred to as the
"Management Company"),
WITNESSETH:
WHEREAS, the Fund is engaged in business as an open-end management investment
company registered under the Federal Investment Company Act of 1940; and
WHEREAS, the Fund is authorized to issue shares of capital stock in separate
Series, with each such Series representing interests in a separate portfolio of
securities and other assets; and
WHEREAS, the Fund currently offers shares in three separate series designated
the Corporate Bond Series, the U.S. Government Series, and the High Yield Series
(the "Series"), such series together with all other series subsequently
established by the Fund with respect to which the Fund desires to retain the
Management Company to render investment advisory services hereunder and with
respect to which the Management Company is willing so to do, being herein
collectively referred to as the "Series", and
WHEREAS, the Management Company is willing to provide investment research and
advice to the Fund on the terms and conditions hereinafter set forth;
NOW, THEREFORE, in consideration of the premises and mutual agreements made
herein, the parties hereto agree as follows:
1. EMPLOYMENT OF MANAGEMENT COMPANY. The Fund hereby employs the Management
Company to act as investment adviser to each Series of the Fund with respect
to the investment of its assets, and to supervise and arrange the purchase
of securities for and the sale of securities held in the portfolios of the
Series of the Fund, subject always to the supervision of the Board of
Directors of the Fund, during the period and upon and subject to the terms
and conditions herein set forth. The Management Company hereby accepts such
employment and agrees to perform the services required by this Agreement for
the compensation herein provided.
In the event the Fund establishes additional series with respect to which it
desires to retain the Management Company to render investment advisory
services hereunder, it shall notify the Management Company in writing. If
the Management Company is willing to render such services it shall notify
the Fund in writing, whereupon such series shall become a Series subject to
the terms and conditions hereunder, and to such amended or additional
provisions as shall be specifically agreed to by the Fund and the Management
Company in accordance with applicable law.
2. INVESTMENT ADVISORY DUTIES. The Management Company shall regularly provide
each Series of the Fund with investment research, advice and supervision,
continuously furnish an investment program and recommend that securities
shall be purchased and sold and what portion of the assets of each series
shall be held uninvested and shall arrange for the purchase of securities
and other investments for and the sale of securities and other investments
held in the portfolio of each Series. All investment advice furnished by the
Management Company to each Series under this Section 2 shall at all times
conform to any requirements imposed by the provisions of the Fund's Articles
of Incorporation and Bylaws, the Investment Company Act of 1940 and the
rules and regulations promulgated thereunder, any other applicable
provisions of law, and the terms of the registration statements of the Fund
under the Securities Act of 1933 and the Investment Company Act of 1940, all
as from time to time amended. The Management Company shall advise and assist
the officers or other agents of the Fund in taking such steps as are
necessary or appropriate to carry out the decisions of the Fund's Board of
Directors (and any duly appointed committee thereof) with regard to the
foregoing matters and the general conduct of the Fund's business.
3. PORTFOLIO TRANSACTIONS AND BROKERAGE.
(a) Transactions in portfolio securities shall be effected by the
Management Company, through brokers or otherwise, in the manner
permitted in this Section 3 and in such manner as the Management
Company shall deem to be in the best interests of the Fund after
consideration is given to all relevant factors.
(b) In reaching a judgment relative to the qualification of a broker to
obtain the best execution of a particular transaction, the Management
Company may take into account all relevant factors and circumstances,
including the size of any contemporaneous market in such securities;
the importance to the Fund of speed and efficiency of execution;
whether the particular transaction is part of a larger intended change
in portfolio position in the same securities; the execution
capabilities required by the circumstances of the particular
transaction; the capital required by the transaction; the overall
capital strength of the broker; the broker's apparent knowledge of or
familiarity with sources from or to whom such securities may be
purchased or sold; as well as the efficiency, reliability and
confidentiality with which the broker has handled the execution of
prior similar transactions.
(c) Subject to any statements concerning the allocation of brokerage
contained in the Fund's prospectus or statement of additional
information, the Management Company is authorized to direct the
execution of portfolio transactions for the Fund to brokers who furnish
investment information or research service to the Management Company.
Such allocation shall be in such amounts and proportions as the
Management Company may determine. If the transaction is directed to a
broker providing brokerage and research services to the Management
Company, the commission paid for such transaction may be in excess of
the commission another broker would have charged for effecting that
transaction, if the Management Company shall have determined in good
faith that the commission is reasonable in relation to the value of
the brokerage and research services provided, viewed in terms of either
that particular transaction or the overall responsibilities of the
Management Company with respect to all accounts as to which it now or
hereafter exercises investment discretion. For purposes of the
immediately preceding sentence, "providing brokerage and research
services" shall have the meaning generally given such terms or similar
terms under Section 28(e)(3) of the Securities Exchange Act of 1934, as
amended.
(d) In the selection of a broker for the execution of any transaction not
subject to fixed commission rates, the Management Company shall have no
duty or obligation to seek advance competitive bidding for the most
favorable negotiated commission rate to be applicable to such
transaction, or to select any broker solely on the basis of its
purported or "posted" commission rates.
(e) In connection with transactions on markets other than national or
regional securities exchanges, the Fund will deal directly with the
selling principal or market maker without incurring charges for the
services of a broker on its behalf unless, in the best judgment of the
Management Company, better price or execution can be obtained in
utilizing the services of a broker.
4. ALLOCATION OF EXPENSES AND CHARGES. The Management Company shall provide
investment advisory, statistical and research facilities and all clerical
services relating to research, statistical and investment work, and shall
provide for the compilation and maintenance of such records relating to
these functions as shall be required under applicable law and the rules and
regulations of the Securities and Exchange Commission. The Management
Company will also provide the Fund with a president, a chief financial
officer, and a secretary, subject to the approval of the Board of Directors,
and will pay the salaries and expenses of such officers of the Fund who are
also directors, officer or employees of the Management Company.
Other than as specifically indicated in the preceding sentences, the
Management Company shall not be required to pay any expenses of the Fund,
and in particular, but without limiting the generality of the foregoing, the
Management Company shall not be required to pay office rental or general
administrative expenses; Board of Directors' fees; legal, auditing and
accounting expenses; insurance premiums; broker's commissions; taxes and
governmental fees and any membership dues; fees of custodian, transfer
agent, registrar and dividend disbursing agent (if any); expenses of
obtaining quotations on the Fund's portfolio securities and pricing of the
Fund's shares; cost of stock certificates and any other expenses (including
clerical expenses) of issue, sale, repurchase or redemption of shares of the
Fund's capital stock; costs and expenses in connection with the registration
of the Fund's capital stock under the Securities Act of 1933 and
qualification of the Fund's capital stock under the Blue Sky laws of the
states where such stock is offered; costs and expenses in connection with
the registration of the Fund under the Investment Company Act of 1940 and
all periodic and other reports required thereunder; expenses of preparing,
printing and distributing reports, proxy statements, prospectuses,
statements or additional information, notices and distributions to
stockholders; costs of stationery; costs of stockholder and other meetings;
expenses of maintaining the Fund's corporate existence; and such
nonrecurring expenses as may arise including litigation affecting the Fund
and the legal obligations the Fund may have to indemnify its officers and
directors.
5. COMPENSATION OF MANAGEMENT COMPANY.
(a) As compensation for the services rendered by the Management Company as
provided herein, for each of the Fund's fiscal years this Agreement is
in effect, the Fund shall pay the Management Company an annual fee
equal to .5 percent of the average daily closing value of the net
assets of each Series computed on a daily basis. Such fee shall be
adjusted and payable monthly. If this Agreement shall be effective for
only a portion of a year in which a fee is owed for any Series, then
the Management Company's compensation for said year shall be prorated
for such portion. For purposes of this Section 5, the value of the net
assets of the Series shall be computed in the same manner as the value
of such net assets is computed in connection with the determination of
the net asset value of the shares of the Fund as described in the
Fund's Prospectus and Statement of Additional Information. The net
asset value of each Series shall be included in and comprise a part of
the net assets of the Fund for purposes of determining said fee under
this Section.
(b) For each of the Fund's full fiscal years this Agreement remains in
force, the Management Company agrees that if the total annual expenses
of each Series of the Fund, exclusive of interest and taxes and
extraordinary expenses (such as litigation), but inclusive of the
Management Company's compensation, exceed any expense limitation
imposed by state securities law or regulation in any state in which
shares of the Fund are then qualified for sale, as such regulations may
be amended from time to time, the Management Company will contribute to
such Series such funds or to waive such portion of its fee, adjusted
monthly as may be requisite to insure that such annual expenses will
not exceed any such limitation. If this Contract shall be effective for
only a portion of one of the Series' fiscal years, then the maximum
annual expenses shall be prorated for such portion. Brokerage fees and
commissions incurred in connection with the purchase or sale of any
securities by a Series shall not be deemed to be expenses with the
meaning of this paragraph (b).
6. MANAGEMENT COMPANY NOT TO RECEIVE COMMISSIONS. In connection with the
purchase or sale of portfolio securities for the account of the Fund,
neither the Management Company nor any officer or director of the Management
Company shall act as principal or receive any compensation from the Fund
other than its compensation as provided for in Section 5 above. If the
Management Company, or any "affiliated person" (as defined in the Investment
Company Act of 1940) receives any cash, credits, commissions or tender fees
from any person in connection with transactions in the Fund's portfolio
securities (including but not limited to the tender or delivery of any
securities held in the Fund's portfolio), the Management Company shall
immediately pay such amount to the Fund in cash or as a credit against any
then earned but unpaid management fees due by the Fund to the Management
Company.
7. LIMITATION OF LIABILITY OF MANAGEMENT COMPANY. So long as the Management
Company shall give the Fund the benefit of its best judgment and effort in
rendering services hereunder, the Management Company shall not be liable for
any errors of judgment or mistake of law, or for any loss sustained by
reason of the adoption of any investment policy or the purchase, sale or
retention of any security on its recommendation, whether or not such
recommendation shall have been based upon its own investigation and research
or upon investigation and research made by any other individual, firm or
corporation, if such recommendation shall have been made and such other
individual, firm or corporation shall have been selected with due care and
in good faith. Nothing herein contained shall, however, be construed to
protect the Management Company against any liability to the Fund or its
security holders by reason of willful misfeasance, bad faith or gross
negligence in the performance of its duties or by reason of its reckless
disregard of its obligations and duties under this Agreement. As used in
this Section 7, "Management Company" shall include directors, officers and
employees of the Management Company, as well as that corporation itself.
8. OTHER ACTIVITIES NOT RESTRICTED. Nothing in this Agreement shall prevent the
Management Company or any officer thereof from acting as investment adviser
for any other person, firm, or corporation, nor shall it in any way limit or
restrict the Management Company or any of its directors, officers,
stockholders or employees from buying, selling, or trading any securities
for its own accounts or for the accounts of others for whom it may be
acting; provided, however, that the Management Company expressly represents
that it will undertake no activities which, in its judgment, will conflict
with the performance of its obligations to the Fund under this Agreement.
The Fund acknowledges that the Management Company acts as investment adviser
to other investment companies, and it expressly consents to the Management
Company acting as such; provided, however, that if in the opinion of the
Management Company, particular securities are consistent with the investment
objectives of, and are desirable purchases or sales for the portfolios of
one or more Series and one or more of such other investment companies or
series of such companies at approximately the same time, such purchases or
sales will be made on a proportionate basis if feasible, and if not
feasible, then on a rotating or other equitable basis.
9. DURATION AND TERMINATION OF AGREEMENT. This Agreement shall become effective
on March 27, 1987, provided that on that date it is approved by the holders
of a majority of the outstanding voting securities of each Series of the
Fund. This Agreement shall continue in force until April 1, 1988, and for
successive 12-month periods thereafter, unless terminated, provided each
such continuance is specifically approved at least annually by (a) the vote
of a majority of the entire Board of Directors of the Fund, and the vote of
a majority of the directors of the Fund who are not parties to this
Agreement or interested persons (as such terms are defined in the Investment
Company Act of 1940) of any such party cast in person at a meeting of such
directors called for the purpose of voting upon such approval, or (b) by the
vote of the holders of a majority of the outstanding voting securities of
each series of the Fund (as defined in the Investment Company Act of 1940).
In the event a majority of the outstanding shares of one series vote for
continuance of the Advisory Contract, it will be continued for that series
even though the Advisory Contract is not approved by either a
majority of the outstanding shares of any other series or by a majority of
outstanding shares of the Fund. Upon this Agreement becoming effective, any
previous agreement between the Fund and the Management Company providing for
investment advisory and management services shall concurrently terminate,
except that such termination shall not affect fees accrued and guarantees of
expenses with respect to any period prior to termination.
This Agreement may be terminated at any time as to any series of the Fund,
without payment of any penalty, by vote of the Board of Directors of the
Fund or by vote of the holders of a majority of the outstanding voting
securities of that series of the Fund, or by the Management Company, upon 60
days' written notice to the other party.
This Agreement shall automatically terminate in the event of its
"assignment" (as defined in the Investment Company Act of 1940).
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective corporate officers thereto duly authorized on the
day, month and year first above written.
ATTEST: SECURITY INCOME FUND
Xxx X. Xxx By: Xxxxxxx X. Xxxxxxxx
----------------------------------- -----------------------------------
Title: Secretary President
ATTEST: SECURITY MANAGEMENT COMPANY
Xxx X. Xxx By: Xxxxxxx X. Xxxxxxxx
----------------------------------- -----------------------------------
Title: Secretary President
Please note that this Agreement was re-executed October 21, 1991, to correct a
typographical error.
AMENDMENT TO INVESTMENT ADVISORY CONTRACT
WHEREAS, Security Income Fund (the "Fund") and Security Management Company (the
"Management Company") are parties to an Investment Advisory Contract dated March
27, 1987 (the "Agreement"), under which the Management Company agrees to provide
investment research and advice to the Fund in return for the compensation
specified in the Agreement;
WHEREAS, Security Income Fund currently offers its shares in two series, the
Corporate Bond Series and the U.S. Government Series (hereinafter collectively
referred to as the "Series");
WHEREAS, effective October 19, 1993, the Fund will offer its shares in two
Classes, Class A shares, which are currently being offered, and a new class,
Class B shares;
WHEREAS, the Fund has adopted a Distribution Plan with respect to its Class B
shares and, as a result, such shares are subject to distribution fees to which
Class A shares are not subject;
WHEREAS, the distribution fees associated with Class B shares require the
amendment of the Agreement relative to that class of shares;
WHEREAS, on October 1, 1993, the initial Class B shareholder of each Series of
the Fund approved such amendment to this Agreement;
WHEREAS, the changes to the Agreement which are contemplated by this Amendment
do not affect the interests of Class A shareholders of the Fund;
NOW, THEREFORE, the Fund and the Management Company hereby amend the Investment
Advisory Contract, dated March 27, 1987, effective October 1, 1993, as follows:
A. The Management Company agrees to provide investment research and advice, to
the Fund pursuant to the terms and conditions set forth in the Agreement, as
amended in section B below.
B. Section 5(b) of the Agreement shall be amended by deleting it in its
entirety and replacing it with the following:
(b) For each of the Fund's full fiscal years this Agreement remains in
force, the Management Company agrees that if the total annual expenses
of each Series of the Fund, exclusive of interest and taxes,
extraordinary expenses (such as litigation), and distribution fees paid
under the Fund's Class B Distribution Plan, but inclusive of the
Management Company's compensation, exceed any expense limitation
imposed by state securities law or regulation in any state in which
shares of the Fund are then qualified for sale, as such regulations may
be amended from time to time, the Management Company will contribute to
such Series such funds or waive such portion of its fee, adjusted
monthly as may be requisite to insure that such annual expenses will
not exceed any such limitation. If this Contract shall be effective for
only a portion of
one of the Series' fiscal years, then the maximum annual expenses shall
be prorated for such portion. Brokerage fees and commissions incurred
in connection with the purchase or sale of any securities by a Series
shall not be deemed to be expenses with the meaning of this paragraph
(b).
IN WITNESS WHEREOF, the parties hereto have made this Amendment to the
Investment Advisory Contract this 1st day of October 1993.
ATTEST: SECURITY INCOME FUND
Xxx X. Xxx By: Xxxxxxx X. Xxxxxxxx
----------------------------------- -----------------------------------
Xxx X. Xxx, Secretary President
ATTEST: SECURITY MANAGEMENT COMPANY
Xxx X. Xxx By: Xxxxxxx X. Xxxxxxxx
----------------------------------- -----------------------------------
Xxx X. Xxx, Secretary President
AMENDMENT TO INVESTMENT ADVISORY CONTRACT
WHEREAS, Security Income Fund (the "Fund") and Security Management Company (the
"Management Company") are parties to an Investment Advisory Contract dated March
27, 1987, as amended (the "Advisory Contract"), under which the Management
Company agrees to provide investment research, advice and supervision and
business management services to the Fund in return for the compensation
specified in the Advisory Contract:
WHEREAS, on October 21, 1994, the Board of Directors of the Fund authorized the
Fund to offer its common stock in a new series designated as the Limited
Maturity Bond Series, in addition to its presently offered series of common
stock of Corporate Bond Series and U.S. Government Series;
WHEREAS, on October 21, 1994, the Board of Directors of the Fund further
authorized the Fund to offer shares of the Limited Maturity Bond Series in two
classes, designated Class A shares and Class B shares;
WHEREAS, on October 21, 1994, the Board of Directors of the Fund approved the
amendment of the Advisory Contract to provide that the Management Company would
provide investment advisory and business management services to each class of
common stock of the Limited Maturity Bond Series of the Fund under the terms and
conditions of the Advisory Contract; and
WHEREAS, on December 30, 1994, the initial shareholder of the Limited Maturity
Bond Series approved such amendment to the Advisory Contract;
NOW, THEREFORE BE IT RESOLVED, that the Fund and the Management Company hereby
amend the Advisory Contract, to provide that the Management Company shall
provide all investment advisory services, and each of the Management Company and
the Fund shall fulfill all of their respective obligations under the Advisory
Contract, as to each Series of the Fund, including the Limited Maturity Bond
Series.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the
Investment Advisory Contract this 30th day of December 1994.
ATTEST: SECURITY INCOME FUND
Xxx X. Xxx By: Xxxx X. Xxxxxxx
----------------------------------- -----------------------------------
Xxx X. Xxx, Secretary Xxxx X. Xxxxxxx, President
ATTEST: SECURITY MANAGEMENT COMPANY
Xxx X. Xxx By: Xxxxxxx X. Xxxxxxxx
----------------------------------- -----------------------------------
Xxx X. Xxx, Secretary Xxxxxxx X. Xxxxxxxx, President
AMENDMENT TO INVESTMENT ADVISORY CONTRACT
WHEREAS, Security Income Fund (the "Fund") and Security Management Company (the
"Management Company") are parties to an Investment Advisory Contract dated March
27, 1987, as amended (the "Advisory Contract"), under which the Management
Company agrees to provide investment research, advice and supervision and
business management services to the Fund in return for the compensation
specified in the Advisory Contract;
WHEREAS, on February 3, 1995, the Board of Directors of the Fund authorized the
Fund to offer its common stock in a new series designated as the Global
Aggressive Bond Series, in addition to its presently offered series of common
stock of Corporate Bond Series, Limited Maturity Bond Series and U.S. Government
Series;
WHEREAS, on February 3, 1995, the Board of Directors of the Fund further
authorized the Fund to offer shares of the Global Aggressive Bond Series in two
classes, designated Class A shares and Class B shares;
WHEREAS, on February 3, 1995, the Board of Directors of the Fund approved the
amendment of the Advisory Contract to provide that the Management Company would
provide investment advisory and business management services to each class of
common stock of the Global Aggressive Bond Series of the Fund under the terms
and conditions of the Advisory Contract; and
WHEREAS, on April 18, 1995, the initial shareholder of the Global Aggressive
Bond Series approved such amendment to the Advisory Contract;
NOW, THEREFORE BE IT RESOLVED, that the Fund and the Management Company hereby
amend the Advisory Contract, dated March 27, 1987, as follows, effective May 1,
1995:
Paragraph 5(a) shall be amended as follows (new language underlined):
5. COMPENSATION OF MANAGEMENT COMPANY
a) As compensation for the services to be rendered by the Management
Company as provided for herein, for each of the years this Agreement is
in effect, the Fund shall pay the Management Company an annual fee equal
to .75 PERCENT OF THE AVERAGE DAILY CLOSING VALUE OF THE NET ASSETS OF
GLOBAL AGGRESSIVE BOND SERIES OF THE FUND, and .50 percent of the
average daily closing value of the net assets of Corporate Bond Series,
Limited Maturity Bond Series, and U.S. Government Series of the Fund,
computed on a daily basis. Such fee shall be adjusted and payable
monthly. If this Agreement shall be effective for only a portion of a
year, then the Management Company's compensation for said year shall be
prorated for such portion. For purposes of this Section 5, the value of
the net assets of each such Series shall be computed in the same manner
at the end of the business day as the value of such net assets is
computed in connection with the determination of the net asset value of
the Fund's shares as described in the Fund's prospectus.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the
Investment Advisory Contract this 28 day of April, 1995.
ATTEST: SECURITY INCOME FUND
Xxx X. Xxx By: Xxxx X. Xxxxxxx
----------------------------------- -----------------------------------
Xxx X. Xxx, Secretary Xxxx X. Xxxxxxx, President
ATTEST: SECURITY MANAGEMENT COMPANY
Xxx X. Xxx By: Xxxxxxx X. Xxxxxxxx
----------------------------------- -----------------------------------
Xxx X. Xxx, Secretary Xxxxxxx X. Xxxxxxxx, President
AMENDMENT TO INVESTMENT ADVISORY CONTRACT
WHEREAS, Security Income Fund (the "Fund") and Security Management Company (the
"Management Company") are parties to an Investment Advisory Contract dated March
27, 1987, as amended (the "Advisory Contract"), under which the Management
Company agrees to provide investment research, advice and supervision and
business management services to the Fund in return for the compensation
specified in the Advisory Contract;
WHEREAS, on May 3, 1996, the Board of Directors of the Fund authorized the Fund
to offer its common stock in a new series designated as the High Yield Series,
in addition to its presently offered series of common stock of Corporate Bond
Series, U.S. Government Series, Limited Maturity Bond Series, and Global
Aggressive Bond Series;
WHEREAS, on May 3, 1996, the Board of Directors of the Fund further authorized
the Fund to offer shares of the High Yield Series in two classes, designated
Class A shares and Class B shares;
WHEREAS, on May 3, 1996, the Board of Directors of the Fund approved the
amendment of the Advisory Contract to provide that the Management Company would
provide investment advisory and business management services to each class of
common stock of the High Yield Series of the Fund under the terms and conditions
of the Advisory Contract; and
WHEREAS, this amendment to the Advisory Contract is subject to the approval of
the initial shareholder of the High Yield Series.
NOW, THEREFORE BE IT RESOLVED, that the Fund and the Management Company hereby
amend the Advisory Contract, dated March 27, 1987, as amended as follows,
effective July 1, 1996:
Paragraph 5(a) shall be amended as follows (new language underlined):
5. COMPENSATION OF MANAGEMENT COMPANY
a) As compensation for the services to be rendered by the Management Company
as provided for herein, for each of the years this Agreement is in effect,
the Fund shall pay the Management Company an annual fee equal to .60 PERCENT
OF THE AVERAGE DAILY CLOSING VALUE OF THE NET ASSETS OF HIGH YIELD SERIES OF
THE FUND, .75 percent of the average daily closing value of the net assets
of Global Aggressive Bond Series of the Fund, and .50 percent of the average
daily closing value of the net assets of Corporate Bond Series, Limited
Maturity Bond Series, and U.S. Government Series of the Fund, computed on a
daily basis. Such fee shall be adjusted and payable monthly. If this
Agreement shall be effective for only a portion of a year, then the
Management Company's compensation for said year shall be prorated for such
portion. For purposes of this Section 5, the value of the net assets of each
such Series shall be computed in the same manner at the end of the business
day as the value of such net assets is computed in connection with the
determination of the net asset value of the Fund's shares as described in
the Fund's prospectus.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the
Investment Advisory Contract this 13th day of May, 1996.
SECURITY INCOME FUND
By: Xxxx X. Xxxxxxx
-----------------------------------
Xxxx X. Xxxxxxx, President
ATTEST:
Xxx X. Xxx
-----------------------------------
Xxx X. Xxx, Secretary
SECURITY MANAGEMENT COMPANY
By: Xxxxxxx X. Xxxxxxxx
-----------------------------------
Xxxxxxx X. Xxxxxxxx, President
ATTEST:
Xxx X. Xxx
-----------------------------------
Xxx X. Xxx, Secretary
AMENDMENT TO INVESTMENT ADVISORY CONTRACT
WHEREAS, Security Income Fund (the "Fund") and Security Management Company (the
"Management Company") are parties to an Investment Advisory Contract, dated
March 27, 1987, as amended (the "Advisory Contract"), under which the Management
Company agrees to provide investment research, advice and supervision and
business management services to the Fund in return for the compensation
specified in the Advisory Contract;
WHEREAS, on October 31, 1996, the operations of the Management Company, a Kansas
corporation, will be transferred to Security Management Company, LLC ("SMC,
LLC"), a Kansas limited liability company; and
WHEREAS, SMC, LLC desires to assume all rights, duties and obligations of the
Management Company under the Advisory Contract.
NOW THEREFORE, in consideration of the premises and mutual agreements made
herein, the parties hereto agree as follows:
1. The Advisory Contract is hereby amended to substitute SMC, LLC for Security
Management Company, with the same effect as though SMC, LLC were the
originally named management company, effective November 1, 1996;
2. SMC, LLC agrees to assume the rights, duties and obligations of Security
Management Company pursuant to the terms of the Advisory Contract.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment to Advisory
Contract this 1st day of November, 1996.
SECURITY INCOME FUND SECURITY MANAGEMENT COMPANY, LLC
By: XXXX X. XXXXXXX By: XXXXX X. XXXXXXX
------------------------------ -----------------------------------
Xxxx X. Xxxxxxx, President Xxxxx X. Xxxxxxx, President
ATTEST: ATTEST:
XXX X. XXX XXX X. XXX
----------------------------------- ----------------------------------------
Xxx X. Xxx, Secretary Xxx X. Xxx, Secretary
