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SHAREHOLDER AND ADMINISTRATIVE SERVICES AGREEMENT
AGREEMENT made as of the 26th of July, 2000, by and between Advantus
Horizon Fund, Inc., a Minnesota corporation, having its principal office and
place of business at 400 Robert Street North, St. Paul, Minnesota 55101 (the
"Fund"), and Minnesota Life Insurance Company, a Minnesota corporation having
its principal office and place of business at 400 Robert Street North, St. Paul,
Minnesota 55101 ("ML").
WHEREAS, the Fund has contracted with PFPC Inc. formerly "First Data
Investor Services Group, Inc.", (the "Transfer Agent"), to provide customary
transfer agent services to the Fund; and
WHEREAS, the Fund has reserved certain shareholder servicing tasks and
responsibilities ("Shareholder Services") which are to be performed by ML rather
than the Transfer Agent; and
WHEREAS, the Fund has further reserved certain accounting, auditing, legal
and other administrative tasks and responsibilities ("Administrative Services")
to be performed by ML; and
WHEREAS, the Fund desires to appoint ML as its Shareholder Services agent
and agent in connection with certain other Administrative Services, and ML
desires to accept such appointment;
NOW, THEREFORE, in consideration of the mutual covenants herein contained,
the parties hereto agree as follows:
Article 1 TERMS OF APPOINTMENT AND DUTIES OF ML
1.01 Subject to the terms and conditions set forth in this
Agreement, and in accordance with procedures established from time to time by
agreement between the Fund and ML, ML hereby agrees to provide the following
Administrative Services:
(a) Register or qualify, and maintain the registrations
or qualifications, of the Fund and its common stock
("Shares") under state or other securities laws;
(b) Calculate the Fund's net asset value per Share at
such times and in such manner as specified in the
Fund's current prospectus and statement of additional
information and at such other times as the parties
hereto may from time to time agree upon;
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(c) Upon the Fund's distribution of dividends and capital
gains, calculate the amount of such dividends and
capital gains to be received per Share and calculate
the number of additional Shares to be received by
each Shareholder, other than any shareholder who has
elected to receive such dividends and capital gains
in cash;
(d) Prepare and maintain all accounting records required
by the Fund, including a general ledger;
(e) Prepare the Fund's annual and semi-annual financial
statements;
(f) Prepare and file the Fund's income, excise and other
tax returns;
(g) Provide audit assistance in conjunction with the
Fund's independent auditors;
(h) Provide such legal services as the parties hereto may
from time to time agree upon, including without
limitation preparation and filing with the Securities
and Exchange Commission of the annual or more
frequent post-effective amendments to the Fund's
registration statement and the Fund's proxy
materials; and
(i) Provide such other Administrative Services as the
parties hereto may from time to time agree upon.
1.02 As Shareholder Services agent, ML agrees to provide
or perform the following Shareholder Services in accordance with procedures
established from time to time by agreement between the Fund and ML:
(a) Receive telephone redemption requests, telephone
redemption directions, wire order purchase requests
and telephone transfer instructions, and deliver such
requests, directions and instructions together with
other appropriate information, to the Transfer Agent;
(b) Provide customer service representatives to respond
to telephone inquiries relating to the Fund from
customers, shareholders and/or registered
representatives and forward any pertinent
information, including without limitation
instructions pertaining to any periodic investment
plan, periodic withdrawal plan or other plan set out
in the currently effective prospectus, or requests to
the Transfer Agent. ML shall transmit electronically,
via U.S. mail or any other delivery means ML
determines to be suitable, any Shareholder or account
transaction instructions received, to the Transfer
Agent in a timely fashion; and
(c) ML will calculate any minimum required distribution
amounts for plans qualified under Section 401(a) or
408 of the Internal Revenue Code, as
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that term is defined under the Code or delegate such
responsibility to a suitable agent, with the Fund's
approval.
Article 2 ADDITIONAL DUTIES
2.01 ML shall keep records relating to the services to be
performed hereunder, in the form and manner as it may deem advisable. To the
extent required by Section 31 of the Investment Company Act of 1940, as amended,
and the Rules thereunder, ML agrees that all such records prepared or maintained
by ML relating to the services to be performed by ML hereunder are the property
of the Fund and will be preserved, maintained and made available in accordance
with such Section and Rules, and will be surrendered promptly to the Fund on and
in accordance with its request.
2.02 ML and the Fund agree that all books, records, information
and data pertaining to the business of the other party which are exchanged or
received pursuant to the negotiation or the carrying out of this Agreement shall
remain confidential, and shall not be voluntarily disclosed to any other person,
except as may be required be law.
2.03 ML will endeavor to notify the Fund and to secure
instructions from an authorized officer of the Fund in case of any requests or
demands for the inspection of Shareholder records. ML reserves the right,
however, to exhibit the Shareholder records to any person whenever it is advised
by its counsel that it may be held liable for the failure to exhibit the
Shareholder records to such person.
Article 3 FEES AND EXPENSES
3.01 For Shareholder Services performed by ML pursuant to this
Agreement, the Fund will pay ML an annual account servicing fee as set forth in
Schedule A. In addition to the fees, the Fund will reimburse ML for
out-of-pocket expenses or advances incurred by ML. Such fees, out-of-pocket
expenses or advances may be changed from time to time subject to mutual written
agreement between the Fund and ML.
3.02 For Administrative Services performed by ML pursuant to this
Agreement, the Fund will pay ML a monthly Administrative Services Fee as set
forth in Schedule A. In addition to the fees, the Fund will reimburse ML for
out-of-pocket expenses or advances incurred by ML. Such fees, out-of-pocket
expenses or advances may be changed from time to time subject to mutual written
agreement between the Fund and ML.
Article 4 REPRESENTATIONS AND WARRANTIES OF ML
ML represents and warrants to the Fund that:
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4.01 It is a corporation duly organized and existing and in good
standing under the laws of the State of Minnesota.
4.02 It is duly qualified to carry on its business in the State
of Minnesota
4.03 It has and will continue to have access to the necessary
facilities, equipment and personnel to perform its duties and obligations under
this Agreement.
4.04 It agrees to obtain and maintain, all regulatory licensing
as may be required of it, if any, under this Agreement.
Article 5 REPRESENTATIONS AND WARRANTIES OF THE FUND
The Fund represents and warrants to ML that:
5.01 It is a corporation duly organized and existing and in good
standing under the laws of Minnesota.
5.02 It is empowered under applicable laws and by its Articles of
Incorporation and Bylaws to enter into and perform this Agreement.
5.03 All corporate proceedings required by said Articles of
Incorporation and Bylaws have been taken to authorize it to enter into and
perform this Agreement.
5.04 It is an open-end and diversified management investment
company registered under the Investment Company Act of 1940.
5.05 A registration statement under the Securities Act of 1933 is
currently effective and will remain effective, and appropriate state securities
law filings have been made and will continue to be made, with respect to all
Shares of the Fund being offered for sale.
Article 6 INDEMNIFICATION
6.01 ML shall not be responsible for, and the Fund shall
indemnify and hold ML harmless from and against, any and all losses, damages,
costs, charges, counsel fees, payments, expenses and liability arising out of or
attributable to:
(a) All actions of ML or its agent or subcontractors required to
be taken pursuant to this Agreement, provided that such actions are taken in
good faith without negligence or willful misconduct.
(b) The Fund's refusal or failure to comply with the terms of
this Agreement, or which arise out of the Fund's lack of good faith, negligence
or willful misconduct or which arise out of the breach of any representation or
warranty of the Fund hereunder.
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(c) The reliance on or use by ML or its agents or subcontractors
of information, records and documents which (i) are received by ML or is agents
or subcontractors and furnished to it by or on behalf of the Fund, and (ii) have
been prepared and/or maintained by the Fund or any other person or firm on
behalf of the Fund.
(d) The reliance on, or the carrying out by ML or its agents or
subcontractors of any instructions or requests of the Fund.
(e) The offer or sale of Shares in violation of any requirement
under the federal securities laws or regulations or the securities laws or
regulations of any state that such Shares be registered in such state or in
violation of any stop order or other determination or ruling by any federal
agency or any state with respect to the offer or sale of such Shares in such
state.
6.02 ML shall indemnify and hold the Fund harmless from and
against any and all losses, damages, costs, charges, counsel fees, payments,
expenses and liability arising out of or attributable to any action or failure
or omission to act by ML as a result of ML's lack of good faith, negligence or
willful misconduct, or ML's refusal or failure to comply with the terms of this
Agreement, or which arise out of the breach of any representation or warranty of
ML hereunder.
6.03 At any time ML may apply to any officer of the Fund for
instructions, and may consult with legal counsel to the Fund with respect to any
matter arising in connection with the services to be performed by ML under this
Agreement, and ML and its agents or subcontractors shall not be liable and shall
be indemnified by the Fund for any action taken or omitted by it in good-faith
reliance upon such instructions or upon the opinion of such counsel. ML, its
agents and subcontractors shall be protected and indemnified in acting upon
any paper or document furnished by or on behalf of the Fund, reasonably believed
to be genuine and to have been signed by the proper person or persons, or upon
any instruction, information, data, records or documents provided ML or its
agents or subcontractors by machine readable input, telex, CRT data entry or
other similar means authorized by the Fund, and shall not be held to have notice
of any change or authority of any person, until receipt of written notice
thereof from the Fund. ML, its agents and subcontractors shall also be protected
and indemnified in recognizing stock certificates which are reasonably believed
to bear the proper manual or facsimile signatures of the officers of the Fund,
and the proper countersignature of any transfer agent or registrar, or of a
co-transfer agent or co-registrar.
6.04 In the event any party is unable to perform its obligations
under the terms of this Agreement because of acts of God, strikes, equipment or
transmission failure or damage reasonably beyond its control, or other causes
reasonably beyond its control, the party shall not be liable for damages to the
other parties for any damages resulting from such failure to perform or
otherwise from such causes.
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6.05 No party to this Agreement shall be liable to any other
party for consequential damages, whether under any provision of this Agreement
or for any act or failure to act hereunder.
6.06 In order that the indemnification provisions contained in
this Article 6 shall apply, upon the assertion of a claim for which either party
may be required to indemnify the other, the party seeking indemnification shall
promptly notify the other party of such assertion, and shall keep the other
party advised with respect to all developments concerning such claim. The party
who may be required to indemnify shall have the option to participate with the
party seeking indemnification in the defense of such claim. The party seeking
indemnification shall in no case confess any claim or make any compromise in
any case in which the other party may be required to indemnify it except with
the other party's prior written consent.
Article 7 TERMINATION OF AGREEMENT
7.01 This Agreement may be terminated by either party upon sixty
(60) days written notice to the other party.
Article 8 ASSIGNMENT
8.01 Neither this Agreement nor any rights or obligations
hereunder may be assigned by either party without the written consent of the
other party.
8.02 This Agreement shall inure to the benefit of and be binding
upon the parties and their respective permitted successors and assigns.
Article 9 AMENDMENT
9.01 This Agreement may be amended or modified by a written
agreement executed by both parties and authorized or approved by a resolution
of the Board of Directors of the Fund.
Article 10 GOVERNING LAW
10.01 This Agreement shall be construed and the provisions
thereof interpreted under and in accordance with the laws of the State of
Minnesota.
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Article 11 ENTIRE AGREEMENT
11.01 This Agreement constitutes the entire agreement between the
parties hereto and supersedes any prior agreement with respect to the subject
matter hereof whether oral or written.
Article 12 EFFECTIVE DATE
12.01 This Agreement shall be effective as of May 1, 2000.
IT WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed in their names and on their behalf under their seals by and
through their duly authorized officers, as of the day and year first above
written.
ADVANTUS HORIZON FUND, INC.
By _____________________________________________
William N. Westhoff, President
Attest__________________________________________
Frederick P. Feuerherm, Treasurer
MINNESOTA LIFE INSURANCE COMPANY
By _____________________________________________
Robert E. Hunstad, Executive Vice President
Attest__________________________________________
Dennis E. Prohofsky, Senior Vice
President, General Counsel and Secretary
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SCHEDULE A
TO THE
SHAREHOLDER AND ADMINISTRATIVE SERVICES AGREEMENT
FOR
ADVANTUS HORIZON FUND, INC.
(As effective May 1, 2000)
(1) Minnesota Life shall receive, as compensation for services
performed as its shareholder servicing agent, an annual account servicing fee
for each shareholder account, determined in accordance with the following table:
Annual Account Fee
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$5.00
(2) Minnesota Life shall receive, as compensation for its
accounting, auditing, legal and other administrative services pursuant to this
Agreement, a monthly fee determined in accordance with the following table:
Monthly Administrative
Service Fee
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$6,200.00
The above monthly fees shall be paid to Minnesota Life not later
than five days following the end of each calendar quarter in which said services
were rendered.
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