<PAGE> PAGE 1
000 A000000 03/31/98
000 C000000 0000926425
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 SCUDDER PATHWAY SERIES
001 B000000 811-8606
001 C000000 2123266200
002 A000000 345 PARK AVENUE
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10154
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 4
007 C010100 1
007 C020100 CONSERVATIVE PORTFOLIO
007 C030100 N
007 C010200 2
007 C020200 BALANCED PORTFOLIO
007 C030200 N
007 C010300 3
007 C020300 GROWTH PORTFOLIO
007 C030300 N
007 C010400 4
007 C020400 INTERNATIONAL PORTFOLIO
007 C030400 N
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A00AA01 SCUDDER KEMPER INVESTMENTS, INC.
008 B00AA01 A
008 C00AA01 801-252
008 D01AA01 NEW YORK
008 D02AA01 NY
008 D03AA01 10154
010 A00AA01 SCUDDER FUND ACCOUNTING CORPORATION
010 C01AA01 BOSTON
010 C02AA01 MA
010 C03AA01 02110
010 C04AA01 4103
<PAGE> PAGE 2
011 A00AA01 SCUDDER INVESTOR SERVICES, INC.
011 B00AA01 8-298
011 C01AA01 BOSTON
011 C02AA01 MA
011 C03AA01 02110
011 C04AA01 4103
012 A00AA01 SCUDDER SERVICE CORPORATION
012 B00AA01 84-1489
012 C01AA01 BOSTON
012 C02AA01 MA
012 C03AA01 02107
012 C04AA01 2291
013 A00AA01 COOPERS AND LYBRAND L.L.P.
013 B01AA01 BOSTON
013 B02AA01 MA
013 B03AA01 02110
014 A00AA01 SCUDDER INVESTOR SERVICES, INC.
014 B00AA01 8-44899
014 A00AA02 GRUNTAL & CO., INC.
014 B00AA02 8-31022
014 A00AA03 GMS GROUP LLC
014 B00AA03 8-23936
014 A00AA04 ZURICH CAPTIAL MARKETS
014 B00AA04 8-49827
014 A00AA05 BANK HANDLOWY W. WARSZAWIE SA
014 B00AA05 8-24613
014 A00AA06 KEMPER DISTRIBUTORS, INC.
014 B00AA06 8-47765
018 00AA00 Y
019 A00AA00 Y
019 B00AA00 62
019 C00AA00 SCUDDERKEM
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<PAGE> PAGE 3
054 F00AA00 N
054 G00AA00 N
054 H00AA00 Y
054 I00AA00 N
054 J00AA00 Y
054 K00AA00 N
054 L00AA00 N
054 M00AA00 Y
054 N00AA00 N
054 O00AA00 Y
062 A00AA00 N
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080 A00AA00 ICI MUTUAL INSURANCE CO.
<PAGE> PAGE 4
080 C00AA00 60000
081 A00AA00 Y
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<PAGE> PAGE 5
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070 F020100 N
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070 G020100 N
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070 H020100 N
<PAGE> PAGE 6
070 I010100 N
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
061 000200 2500
066 A000200 Y
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070 G020200 N
070 H010200 N
070 H020200 N
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070 I020200 N
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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028 A010300 2351
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045 000300 Y
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<PAGE> PAGE 12
047 000300 N
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058 A000300 N
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066 A000300 Y
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<PAGE> PAGE 13
070 F020300 N
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<PAGE> PAGE 14
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<PAGE> PAGE 15
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<PAGE> PAGE 16
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<PAGE> PAGE 17
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<PAGE> PAGE 18
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SIGNATURE THOMAS F. MCDONOUGH
TITLE VICE PRESIDENT
Shareholder Meeting Results
A Special Meeting of Shareholders (the "Meeting") of Scudder Pathway Series
International Portfolio (the "Fund") was held on October 24, 1997, at the office
of Scudder Kemper Investments, Inc. (formerly Scudder, Stevens & Clark, Inc.),
Two International Place, Boston, Massachusetts 02110. At the Meeting, as
adjourned and reconvened, the following matters were voted upon by the
shareholders (the resulting votes for each matter are presented below). With
regard to certain proposals, it was recommended that the Meeting be reconvened
in order to provide shareholders with an additional opportunity to return their
proxies. The date of the reconvened meeting at which the matters were decided is
noted after the proposed matter.
1. To approve the new Investment Management Agreement between the Fund and
Scudder Kemper Investments, Inc.
Number of Votes:
----------------
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
443,784 20,111 19,184 0
2. To elect Trustees.
Number of Votes:
----------------
Trustee For Withheld
------- --- --------
Dr. Rosita P. Chang 467,676 15,403
Edgar R. Fiedler 468,570 14,510
Peter B. Freeman 467,178 15,902
Dr. J. D. Hammond 468,397 14,682
Richard M. Hunt 467,438 15,641
3. To approve the Board's discretionary authority to convert the Fund to a
master/feeder fund structure through a sale or transfer of assets or
otherwise.
Number of Votes:
----------------
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
424,456 28,383 21,062 9,178
4. To approve certain amendments to the Declaration of Trust. Sufficient
proxies had not been received by December 2, 1997 to approve the
amendments to the Declaration of Trust. Management has determined not to
continue to seek shareholder approval for this item.
Number of Votes:
----------------
For Against Abstain Broker Non-Votes*
--- ------- ------- -----------------
432,333 25,393 19,826 9,178
5. To approve the revision of certain fundamental investment policies.
<TABLE>
<CAPTION>
Number of Votes:
----------------
Broker
Fundamental Policies For Against Abstain Non-Votes*
-------------------- --- ------- ------- ----------
<S> <C> <C> <C> <C>
5.1 Borrowing 429,962 25,034 18,905 9,178
5.2 Senior securities 431,260 15,156 27,485 9,178
5.3 Underwriting of securities 434,794 11,622 27,485 9,178
5.4 Investment in real estate 431,388 15,028 27,485 9,178
5.5 Purchase of physical 431,611 14,805 27,485 9,178
commodities
5.6 Loans 434,703 11,713 27,485 9,178
</TABLE>
6. To ratify the selection of Coopers & Lybrand L.L.P. as the Fund's independent
accountants.
Number of Votes:
----------------
For Against Abstain
--- ------- -------
458,212 3,627 21,240
* Broker non-votes are proxies received by the Fund from brokers or nominees
when the broker or nominee neither has received instructions from the
beneficial owner or other persons entitled to vote nor has discretionary power
to vote on a particular matter.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the Pathway:
Conservative Portfolio Annual Report for the 6 months ended 3/31/98 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<SERIES>
<NUMBER> 1
<NAME>Pathway: Conservative Portfolio
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> MAR-31-1998
<INVESTMENTS-AT-COST> 26,798,985
<INVESTMENTS-AT-VALUE> 28,052,198
<RECEIVABLES> 87,537
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
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</TABLE>
Scudder Pathway Series
Two International Place
Boston, Massachusetts 02110
December 31, 1997
Scudder Kemper Investments, Inc.
345 Park Avenue
New York, New York 10154
Investment Management Agreement
Scudder Pathway Series
Ladies and Gentlemen:
Scudder Pathway Series (the "Trust") has been established as a
Massachusetts business trust to engage in the business of an investment company.
Pursuant to the Trust's Declaration of Trust, as amended from time-to-time (the
"Declaration"), the Board of Trustees has divided the Trust's shares of
beneficial interest, par value $.01 per share, (the "Shares") into separate
series, or portfolios, including Conservative Portfolio, Balanced Portfolio,
Growth Portfolio and International Portfolio (the "Portfolios"). Series may be
abolished and dissolved, and additional series established, from time to time by
action of the Trustees.
The Trust, on behalf of the Portfolios, has selected you to act as the
sole investment manager of the Portfolios and to provide certain other services,
as more fully set forth below, and you have indicated that you are willing to
act as such investment manager and to perform such services under the terms and
conditions hereinafter set forth. Accordingly, the Trust on behalf of the
Portfolios agrees with you as follows:
1. Delivery of Documents. The Trust engages in the business of investing
and reinvesting the assets of the Portfolios in the manner and in accordance
with the investment objectives, policies and restrictions specified in the
currently effective Prospectus (the "Prospectus") and Statement of Additional
Information (the "SAI") relating to the Portfolios included in the Trust's
Registration Statement on Form N-1A, as amended from time to time, (the
"Registration Statement") filed by the Trust under the Investment Company Act of
1940, as amended, (the "1940 Act") and the Securities Act of 1933, as amended.
Copies of the documents referred to in the preceding sentence have been
furnished to you by the Trust. The Trust has also furnished you with copies
properly certified or authenticated of each of the following additional
documents related to the Trust and the Portfolios:
(a) The Declaration dated July 1, 1994 as amended to date.
(b) By-Laws of the Trust as in effect on the date hereof (the "By-Laws").
(c) Resolutions of the Trustees of the Trust and the shareholders of each
Portfolio selecting you as investment manager and approving the form of
this Agreement.
<PAGE>
(d) Establishment and Designation of Series of Shares of Beneficial Interest
dated September 12, 1996 relating to each Portfolio.
The Trust will furnish you from time to time with copies, properly
certified or authenticated, of all amendments of or supplements, if any, to the
foregoing, including the Prospectus, the SAI and the Registration Statement.
2. Sublicense to Use the Scudder Trademarks. As exclusive licensee of the
rights to use and sublicense the use of the "Scudder," "Scudder Kemper
Investments, Inc." and "Scudder, Stevens & Clark, Inc." trademarks (together,
the "Scudder Marks"), you hereby grant the Trust and Portfolios a nonexclusive
right and sublicense to use (i) the "Scudder" name and mark as part of their
names (the "Trust Names"), and (ii) the Scudder Marks in connection with their
investment products and services, in each case only for so long as this
Agreement, any other investment management agreement between you and the Trust,
or any extension, renewal or amendment hereof or thereof remains in effect, and
only for so long as you are a licensee of the Scudder Marks, provided however,
that you agree to use your best efforts to maintain your license to use and
sublicense the Scudder Marks. The Trust and Portfolios agree that they shall
have no right to sublicense or assign rights to use the Scudder Marks, shall
acquire no interest in the Scudder Marks other than the rights granted herein,
that all of their uses of the Scudder Marks shall inure to the benefit of
Scudder Trust Company as owner and licensor of the Scudder Marks (the "Trademark
Owner"), and that the Trust and Portfolios shall not challenge the validity of
the Scudder Marks or the Trademark Owner's ownership thereof. The Trust and
Portfolios further agree that all services and products they offer in connection
with the Scudder Marks shall meet commercially reasonable standards of quality,
as may be determined by you or the Trademark Owner from time to time, provided
that you acknowledge that the services and products the Trust and Portfolios
rendered during the one-year period preceding the date of this Agreement are
acceptable. At your reasonable request, the Trust and Portfolios shall cooperate
with you and the Trademark Owner and shall execute and deliver any and all
documents necessary to maintain and protect (including but not limited to in
connection with any trademark infringement action) the Scudder Marks and/or
enter the Trust and Portfolios as registered users thereof. At such time as this
Agreement or any other investment management agreement shall no longer be in
effect between you (or your successor) and the Trust and Portfolios, or you no
longer are a licensee of the Scudder Marks, the Trust and Portfolios shall (to
the extent that, and as soon as, it lawfully can) cease to use the Trust Names
or any other name indicating that it is advised by, managed by or otherwise
connected with you (or any organization which shall have succeeded to your
business as investment manager) or the Trademark Owner. In no event shall the
Trust use the Scudder Marks or any other name or mark confusingly similar
thereto (including, but not limited to, any name or mark that includes the name
"Scudder") if this Agreement or any other investment advisory agreement between
you (or your successor) and the Trust is terminated.
3. Portfolio Management Services. As manager of the assets of the
Portfolios, you shall provide continuing investment management of the assets of
the Portfolios in accordance with the investment objectives, policies and
restrictions set forth in the Prospectus and SAI; the applicable provisions of
the 1940 Act and the Internal Revenue Code of 1986, as amended, (the "Code")
relating to regulated investment companies and all rules and regulations
thereunder; and all other applicable federal and state laws and regulations of
which you have knowledge; subject always to policies and instructions adopted by
the Trust's Board of Trustees. In connection therewith, you shall use reasonable
efforts to manage each Portfolio so that it will qualify as a regulated
investment company under Subchapter M of the Code and regulations issued
thereunder. The Portfolios shall have the benefit of the investment analysis and
research, the review of current economic conditions and trends and the
consideration of long-range investment policy generally available to your
investment advisory clients. In managing the Portfolios in accordance with the
3
<PAGE>
requirements set forth in this section 3, you shall be entitled to receive and
act upon advice of counsel to the Trust or counsel to you. You shall also make
available to the Trust promptly upon request all of the Portfolios' investment
records and ledgers as are necessary to assist the Trust in complying with the
requirements of he 1940 Act and other applicable laws. To the extent required by
law, you shall furnish to regulatory authorities having the requisite authority
any information or reports in connection with the services provided pursuant to
this Agreement which may be requested in order to ascertain whether the
operations of the Trust are being conducted in a manner consistent with
applicable laws and regulations.
You shall determine the securities, instruments, investments, currencies,
repurchase agreements, futures, options and other contracts relating to
investments to be purchased, sold or entered into by the Portfolios and place
orders with broker-dealers, foreign currency dealers, futures commission
merchants or others pursuant to your determinations and all in accordance with
Portfolio policies as expressed in the Registration Statement. You shall
determine what portion of each Portfolio's investment portfolio shall be
invested in securities and other assets and what portion, if any, should be held
uninvested.
You shall furnish to the Trust's Board of Trustees periodic reports on the
investment performance of the Portfolios and on the performance of your
obligations pursuant to this Agreement, and you shall supply such additional
reports and information as the Trust's officers or Board of Trustees shall
reasonably request.
4. Administrative Services. In addition to the portfolio management
services specified above in section 3, you shall furnish at your expense for the
use of the Portfolios such office space and facilities in the United States as
the Portfolios may require for their reasonable needs, and you (or one or more
of your affiliates designated by you) shall render to the Trust administrative
services on behalf of the Portfolios necessary for operating as an open-end
investment company and not provided by persons not parties to this Agreement
including, but not limited to, preparing reports to and meeting materials for
the Trust's Board of Trustees and reports and notices to Portfolio shareholders;
supervising, negotiating contractual arrangements with, to the extent
appropriate, and monitoring the performance of, accounting agents, custodians,
depositories, transfer agents and pricing agents, accountants, attorneys,
printers, underwriters, brokers and dealers, insurers and other persons in any
capacity deemed to be necessary or desirable to Portfolio operations; preparing
and making filings with the Securities and Exchange Commission (the "SEC") and
other regulatory and self-regulatory organizations, including, but not limited
to, preliminary and definitive proxy materials, post-effective amendments to the
Registration Statement, semi-annual reports on Form N-SAR and notices pursuant
to Rule 24f-2 under the 1940 Act; overseeing the tabulation of proxies by the
Portfolios' transfer agent; assisting in the preparation and filing of each
Portfolio's federal, state and local tax returns; preparing and filing each
Portfolio's federal excise tax return pursuant to Section 4982 of the Code;
providing assistance with investor and public relations matters; monitoring the
valuation of portfolio securities and the calculation of net asset value;
monitoring the registration of Shares of each Portfolio under applicable federal
and state securities laws; maintaining or causing to be maintained for each
Portfolio all books, records and reports and any other information required
under the 1940 Act, to the extent that such books, records and reports and other
information are not maintained by the Portfolios' custodian or other agents of
the Portfolios; assisting in establishing the accounting policies of each
Portfolio; assisting in the resolution of accounting issues that may arise with
respect to each Portfolio's operations and consulting with the Portfolios'
independent accountants, legal counsel and the Portfolios' other agents as
necessary in connection therewith; establishing and monitoring each Portfolio's
operating expense budgets; reviewing each Portfolio's bills; processing the
payment of bills that have been approved by an authorized person; assisting each
Portfolio in determining the amount of dividends and distributions available to
be paid by each Portfolio to its shareholders, preparing and arranging for the
printing of dividend notices to shareholders, and providing the transfer and
dividend
3
<PAGE>
paying agent, the custodian, and the accounting agent with such information
as is required for such parties to effect the payment of dividends
and distributions; and otherwise assisting the Trust as it may reasonably
request in the conduct of each Portfolio's business, subject to the direction
and control of the Trust's Board of Trustees. Nothing in this Agreement shall be
deemed to shift to you or to diminish the obligations of any agent of a
Portfolio or any other person not a party to this Agreement which is obligated
to provide services to the Portfolios.
5. Allocation of Charges and Expenses. Except as otherwise specifically
provided in this section 5, you shall pay the compensation and expenses of all
Trustees, officers and executive employees of the Trust (including each
Portfolio's share of payroll taxes) who are affiliated persons of you, and you
shall make available, without expense to the Portfolios, the services of such of
your directors, officers and employees as may duly be elected officers of the
Trust, subject to their individual consent to serve and to any limitations
imposed by law. You shall provide at your expense the portfolio management
services described in section 3 hereof and the administrative services described
in section 4 hereof.
You shall not be required to pay any expenses of the Portfolios other than
those specifically allocated to you in this section 5 and under the terms of the
Special Servicing Agreement dated November 15, 1996 ("Special Servicing
Agreement") among you, the Trust, Scudder Fund Accounting Corporation, Scudder
Service Corporation, Scudder Trust Company, Scudder Investor Services, Inc. and
the various funds in which the Portfolios may invest (the "Underlying Funds").
In particular, but without limiting the generality of the foregoing, such
expenses include the following: organization expenses of each Portfolio
(including out-of-pocket expenses, but not including your overhead or employee
costs); fees payable to you and to any other Portfolio advisors or consultants;
legal expenses; auditing and accounting expenses; maintenance of books and
records which are required to be maintained by the Portfolios' custodian or
other agents of the Trust; telephone, telex, facsimile, postage and other
communications expenses; taxes and governmental fees; fees, dues and expenses
incurred by the Portfolios in connection with membership in investment company
trade organizations; fees and expenses of the Portfolios' accounting agent,
custodians, subcustodians, transfer agents, dividend disbursing agents and
registrars; payment for portfolio pricing or valuation services to pricing
agents, accountants, bankers and other specialists, if any; expenses of
preparing share certificates and, except as provided below in this section 5,
other expenses in connection with the issuance, offering, distribution, sale,
redemption or repurchase of securities issued by the Portfolios; expenses
relating to investor and public relations; expenses and fees of registering or
qualifying Shares of the Portfolios for sale; interest charges, bond premiums
and other insurance expense; freight, insurance and other charges in connection
with the shipment of the Portfolios' investment portfolio securities; the
compensation and all expenses (specifically including travel expenses relating
to Trust business) of Trustees, officers and employees of the Trust who are not
affiliated persons of you; brokerage commissions or other costs of acquiring or
disposing of any portfolio securities of the Portfolios; expenses of printing
and distributing reports, notices and dividends to shareholders; expenses of
printing and mailing Prospectuses and SAIs of the Portfolios and supplements
thereto; costs of stationery; any litigation expenses; indemnification of
Trustees and officers of the Trust; costs of shareholders' and other meetings;
and travel expenses (or an appropriate portion thereof) of Trustees and officers
of the Trust who are directors, officers or employees of you to the extent that
such expenses relate to attendance at meetings of the Board of Trustees of the
Trust or any committees thereof or advisors thereto held outside of Boston,
Massachusetts or New York, New York.
Except as provided in the Special Servicing Agreement, you shall not be
required to pay expenses of any activity which is primarily intended to result
in sales of Shares of the Portfolios if and to the extent that (i) such expenses
are required to be borne by a principal underwriter which acts as the
distributor of the Portfolios' Shares pursuant to an underwriting agreement
which provides that the underwriter shall
4
assume some or all of such expenses, or (ii) the Trust on behalf of the
Portfolios shall have adopted a plan in conformity with Rule 12b-1 under the
1940 Act providing that the Portfolios (or some other party) shall assume some
or all of such expenses. You shall be required to pay such of the foregoing
sales expenses as are not required to be paid by the principal underwriter
pursuant to the underwriting agreement or are not permitted to be paid by the
Portfolios (or some other party) pursuant to such a plan.
6. Management Fee and Payment of Certain Expenses. As you expect to
receive additional compensation under investment management agreements currently
in effect between you and the Underlying Funds due to growth in the assets of
the Underlying Funds resulting from investments in the Underlying Funds by the
Portfolios, you will not be paid a fee for the services described in sections 3
and 4 hereof.
7. Avoidance of Inconsistent Position; Services Not Exclusive. In
connection with purchases or sales of portfolio securities and other investments
for the account of the Portfolios, neither you nor any of your directors,
officers or employees shall act as a principal or agent or receive any
commission. You or your agent shall arrange for the placing of all orders for
the purchase and sale of portfolio securities and other investments for each
Portfolio's account with brokers or dealers selected by you in accordance with
Portfolios policies as expressed in the Registration Statement. If any occasion
should arise in which you give any advice to clients of yours concerning the
Shares of the Portfolios, you shall act solely as investment counsel for such
clients and not in any way on behalf of the Portfolios.
Your services to the Portfolios pursuant to this Agreement are not to be
deemed to be exclusive and it is understood that you may render investment
advice, management and services to others. In acting under this Agreement, you
shall be an independent contractor and not an agent of the Trust. Whenever the
Portfolios and one or more other accounts or investment companies advised by the
Manager have available funds for investment, investments suitable and
appropriate for each shall be allocated in accordance with procedures believed
by the Manager to be equitable to each entity. Similarly, opportunities to sell
securities shall be allocated in a manner believed by the Manager to be
equitable. The Portfolios recognize that in some cases this procedure may
adversely affect the size of the position that may be acquired or disposed of
for the Portfolios.
8. Limitation of Liability of Manager. As an inducement to your
undertaking to render services pursuant to this Agreement, the Trust agrees that
you shall not be liable under this Agreement for any error of judgment or
mistake of law or for any loss suffered by the Portfolios in connection with the
matters to which this Agreement relates, provided that nothing in this Agreement
shall be deemed to protect or purport to protect you against any liability to
the Trust, the Portfolios or its shareholders to which you would otherwise be
subject by reason of willful misfeasance, bad faith or gross negligence in the
performance of your duties, or by reason of your reckless disregard of your
obligations and duties hereunder. Any person, even though also employed by you,
who may be or become an employee of and paid by the Portfolios shall be deemed,
when acting within the scope of his or her employment by the Portfolios, to be
acting in such employment solely for the Portfolios and not as your employee or
agent.
9. Duration and Termination of This Agreement. This Agreement shall remain
in force until September 30, 1998, and continue in force from year to year
thereafter, but only so long as such continuance is specifically approved at
least annually (a) by the vote of a majority of the Trustees who are not parties
to this Agreement or interested persons of any party to this Agreement, cast in
person at a meeting called for the purpose of voting on such approval, and (b)
by the Trustees of the Trust, or, with respect to each Portfolio, by the vote of
a majority of the outstanding voting securities of such Portfolio.
5
<PAGE>
The aforesaid requirement that continuance of this Agreement be "specifically
approved at least annually" shall be construed in a manner consistent with the
1940 Act and the rules and regulations thereunder and any applicable SEC
exemptive order therefrom.
This Agreement may be terminated with respect to a Portfolio at any time,
without the payment of any penalty, by the vote of a majority of the outstanding
voting securities of the Portfolio or by the Trust's Board of Trustees on 60
days' written notice to you, or by you on 60 days' written notice to the Trust.
This Agreement shall terminate automatically in the event of its assignment.
10. Amendment of this Agreement. No provision of this Agreement may be
changed, waived, discharged or terminated orally, but only by an instrument in
writing signed by the party against whom enforcement of the change, waiver,
discharge or termination is sought, and no amendment of this Agreement shall be
effective until approved in a manner consistent with the 1940 Act and rules and
regulations thereunder and any applicable SEC exemptive order therefrom.
11. Limitation of Liability for Claims. The Declaration, a copy of which,
together with all amendments thereto, is on file in the Office of the Secretary
of the Commonwealth of Massachusetts, provides that the name "Scudder Pathway
Series" refers to the Trustees under the Declaration collectively as Trustees
and not as individuals or personally, and that no shareholder of any Portfolio,
or Trustee, officer, employee or agent of the Trust, shall be subject to claims
against or obligations of the Trust or of any Portfolio to any extent
whatsoever, but that the Trust estate only shall be liable.
You are hereby expressly put on notice of the limitation of liability as
set forth in the Declaration and you agree that the obligations assumed by the
Trust on behalf of each Portfolio pursuant to this Agreement shall be limited in
all cases to the Portfolios and its assets, and you shall not seek satisfaction
of any such obligation from the shareholders or any shareholder of the
Portfolios or any other series of the Trust, or from any Trustee, officer,
employee or agent of the Trust. You understand that the rights and obligations
of each Portfolio, or series, under the Declaration are separate and distinct
from those of any and all other series.
12. Miscellaneous. The captions in this Agreement are included for
convenience of reference only and in no way define or limit any of the
provisions hereof or otherwise affect their construction or effect. This
Agreement may be executed simultaneously in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.
In interpreting the provisions of this Agreement, the definitions
contained in Section 2(a) of the 1940 Act (particularly the definitions of
"affiliated person," "assignment" and "majority of the outstanding voting
securities"), as from time to time amended, shall be applied, subject, however,
to such exemptions as may be granted by the SEC by any rule, regulation or
order.
This Agreement shall be construed in accordance with the laws of the
Commonwealth of Massachusetts, provided that nothing herein shall be construed
in a manner inconsistent with the 1940 Act, or in a manner which would cause a
Portfolio to fail to comply with the requirements of Subchapter M of the Code.
6
<PAGE>
This Agreement shall supersede all prior investment advisory or management
agreements entered into between you and the Trust on behalf of the Portfolios.
If you are in agreement with the foregoing, please execute the form of
acceptance on the accompanying counterpart of this letter and return such
counterpart to the Trust, whereupon this letter shall become a binding contract
effective as of the date of this Agreement.
Yours very truly,
SCUDDER PATHWAY SERIES, on behalf of
Conservative Portfolio
Balanced Portfolio
Growth Portfolio
International Portfolio
By:/s/Daniel Pierce
----------------------------
President
The foregoing Agreement is hereby accepted as of the date hereof.
SCUDDER KEMPER INVESTMENTS, INC.
By:/s/Stephen R. Bechwith
-------------------------------
Managing Director
