UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                  SCHEDULE 14A
                  Proxy Statement Pursuant to Section 14(a) of
               the Securities Exchange Act of 1934 (Amendment No.)

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                 Filed by a Party other than the Registrant [ ]

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            14A-6(E)(2))
   [ ]      Definitive Proxy Statement
   [ ]      Definitive Additional Materials
   [ ]      Soliciting Material Pursuant to ss.240.14a-12

                (Name of Registrant as Specified In Its Charter)

                                    SBL FUND


    (Name of Person(s) Filing Proxy Statement, if other than the Registrant)

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June 16, 2008

Dear Policyowners:

The Board of Directors (the "Board") of SBL Fund, after careful consideration of
shareholder interests, unanimously approved changes to Series Z (Alpha
Opportunity Series) (the "Series"), a series of SBL Fund (the "Company") in a
meeting held on May 9, 2008. We are writing to inform you that a special
shareholders' meeting will be held August 5, 2008 regarding certain of these
changes. The changes approved by the Board include:

     o    the addition of a global long/short investment manager to manage a
          third sub-portfolio of the Series, complementing the sub-portfolios
          managed by the current long/short investment manager and the current
          fixed income/S&P 500 futures manager;

     o    the reallocation of the Series' assets among the two existing
          sub-portfolios and the new global long/short sub-portfolio; and

     o    changes to permit the Series to raise its percentage of investments in
          foreign securities from its current level.

In connection with these changes, the Board also approved changes to the Series'
investment advisory and sub-advisory arrangements, which are expected to result
in lower fees.

You are being asked to vote on (1) an amended investment advisory agreement
between the Investment Manager and the Company, on behalf of the Series to
provide for a new fixed advisory fee structure that is likely to result in lower
advisory fees to the Series and that will facilitate the payment of sub-advisory
fees to the Series' sub-advisers, and (2) a new sub-advisory agreement between
the Investment Manager and Security Global Investors, LLC to manage the new
global long/short investment strategy of the Series. If these two proposals are
approved, the changes to the principal investment strategies approved by the
Board will be implemented for the Series on or about August 18, 2008. Your proxy
statement is enclosed.

You can vote in one of four ways:

     o    By mail with the enclosed proxy card - be sure to sign, date and
          return it in the enclosed postage-paid envelope,

     o    Through the web site listed in the proxy voting instructions,

     o    By telephone using the toll-free number listed in the proxy voting
          instructions, or

     o    In person at the shareholder meeting on August 5, 2008.

We encourage you to vote over the Internet or by telephone, using the voting
control number that appears on your proxy card. Your vote is extremely
important. Please read the enclosed information carefully before voting. If you
have questions, please call the Altman Group at 1-800-361-2782.

We appreciate your participation and prompt response in this matter and thank
you for your continued support.

                                 Sincerely,

                                 /s/ Richard M. Goldman
                                 Richard M. Goldman
                                 President, Chairman of the Board of Directors





                       SERIES Z (ALPHA OPPORTUNITY SERIES)

                                   A SERIES OF
                                    SBL FUND
                           ONE SECURITY BENEFIT PLACE
                            TOPEKA, KANSAS 66636-0001
                                 1-800-888-2461
                                   -----------

                    NOTICE OF SPECIAL MEETING OF SHAREHOLDERS
                            TO BE HELD AUGUST 5, 2008
                                   -----------


To the Policyowners:

Notice is hereby given that SBL Fund (the "Company") will hold a special meeting
of shareholders of Series Z (Alpha Opportunity Series) (the "Series") on August
5, 2008, at the Company's offices, One Security Benefit Place, Topeka, Kansas
66636-0001, at 1:00 p.m., Central Time, as adjourned from time to time (the
"Special Meeting") for the purposes listed below:

     1.   To approve an amended investment advisory agreement between the
          Company and Security Investors, LLC (the "Investment Manager"), on
          behalf of the Series;

     2.   To approve a new investment sub-advisory agreement between the
          Investment Manager and Security Global Investors, LLC ("SGI") pursuant
          to which SGI will be appointed as an additional investment sub-adviser
          to the Series; and

     3.   To transact such other business as may properly come before the
          Special Meeting.

After careful consideration, the Board of Directors of the Company (the "Board")
unanimously approved the amended investment advisory agreement and new
sub-advisory agreement and recommends that shareholders vote "FOR" Proposals 1
and 2.

Shareholders of record at the close of business on June 9, 2008 are entitled to
notice of, and to vote at, the Special Meeting.

Your attention is called to the accompanying Proxy Statement. If you do not
expect to attend the Special Meeting in person, you are requested to complete,
date, and sign the enclosed proxy card and return it promptly in the envelope
provided for that purpose. Your proxy card also provides instructions for voting
via telephone or the Internet if you wish to take advantage of these voting
options. Proxies may be revoked at any time by executing and submitting a
revised proxy, by giving written notice of revocation to the Company, or by
voting in person at the Special Meeting.

By Order of the Board,

/s/ Amy J. Lee
Amy J. Lee
Secretary

YOUR VOTE IS VERY IMPORTANT TO US REGARDLESS OF THE NUMBER OF VOTES YOU HOLD.
SHAREHOLDERS WHO DO NOT EXPECT TO ATTEND THE SPECIAL MEETING ARE REQUESTED TO
COMPLETE, SIGN, DATE AND RETURN THE ACCOMPANYING PROXY CARD IN THE ENCLOSED
ENVELOPE, WHICH NEEDS NO POSTAGE IF MAILED IN THE UNITED STATES. IT IS IMPORTANT
THAT YOUR PROXY CARD BE RETURNED PROMPTLY.



FOR YOUR CONVENIENCE, YOU MAY ALSO VOTE BY TELEPHONE OR INTERNET BY FOLLOWING
THE ENCLOSED INSTRUCTIONS. IF YOU VOTE BY TELEPHONE OR VIA THE INTERNET, PLEASE
DO NOT RETURN YOUR PROXY CARD UNLESS YOU ELECT TO CHANGE YOUR VOTE.






                       SERIES Z (ALPHA OPPORTUNITY SERIES)

                                   A SERIES OF
                                    SBL FUND
                           ONE SECURITY BENEFIT PLACE
                            TOPEKA, KANSAS 66636-0001
                                 1-800-888-2461
                                   -----------

                                 PROXY STATEMENT
                                   -----------

                         SPECIAL MEETING OF SHAREHOLDERS

                            TO BE HELD AUGUST 5, 2008

This proxy statement and enclosed proxy notice and proxy card are being
furnished in connection with the solicitation of proxies by the Board of
Directors (the "Board" or "Directors") of SBL Fund (the "Company") for use at a
special meeting of shareholders of Series Z (Alpha Opportunity Series) (the
"Series"), on August 5, 2008, at the Company's offices, One Security Benefit
Place, Topeka, Kansas 66636-0001, at 1:00 p.m., Central Time, as adjourned from
time to time (the "Special Meeting"). The Board is soliciting proxies from
shareholders of the Series with respect to shareholder consideration of the
following proposals:

     1.   To approve an amended investment advisory agreement ("Amended Advisory
          Agreement") between the Company and Security Investors, LLC (the
          "Investment Manager"), on behalf of the Series;

     2.   To approve a new investment sub-advisory agreement ("SGI Sub-Advisory
          Agreement") between the Investment Manager and Security Global
          Investors, LLC ("SGI") pursuant to which SGI will be appointed as an
          additional investment sub-adviser to the Series; and

     3.   To transact such other business as may properly come before the
          Special Meeting.

This proxy statement and the notice and proxy card are being first mailed to
shareholders on or about June 16, 2008.

Shares of the Series are not offered directly to the public but are sold only to
insurance companies and their separate accounts as the underlying investment
medium for owners of variable annuity contracts and variable life insurance
policies. As such, Security Benefit Life Insurance Company and First Security
Benefit Life Insurance and Annuity Company of New York (collectively, the
"Insurance Companies") are the only shareholders of record of the Series. SBL
Fund is soliciting voting instructions from insurance contract owners invested
in the Series in connection with the proposal. As such and for ease of
reference, throughout the proxy statement, insurance contract owners may be
referred to as "shareholders" of the Series.

You have received this Proxy Statement because you have an insurance contract
issued by of one of the Insurance Companies and you are invested in the Series.
As such, you have the right to give voting instructions on shares of the Series
that are attributable to your insurance contract, if your voting instructions
are properly submitted and received prior to the Special Meeting.

                                  INTRODUCTION

As manager for the Series, the Investment Manager reviews and evaluates the
Series' principal investment strategies and sub-advisory arrangements on an
ongoing basis. Based on the recommendations of the Investment Manager, at a
meeting held on May 9, 2008, the Board approved the following changes to the
investment strategies of the Series: the creation of a third investment
sub-portfolio with a global long/short strategy (the "SGI Sub-Portfolio")
managed by SGI, as a new investment sub-adviser to the Series; the reallocation
of the Series' assets among the two existing sub-portfolios and the SGI
Sub-Portfolio; and changes to the Series' principal investment strategies to
permit the Series to invest up to 50% of



its assets in foreign securities to facilitate the management of the SGI
Sub-Portfolio. In connection with these changes, the Board also approved certain
changes to the Series' investment advisory and sub-advisory arrangements.

Series shareholders are being asked to approve the Amended Advisory Agreement,
which would provide for a new fixed advisory fee structure that is likely to
result in lower advisory fees to the Series and that will facilitate the payment
of sub-advisory fees to the Series' sub-advisers, and the SGI Sub-Advisory
Agreement pursuant to which SGI would serve as an additional investment
sub-adviser and would manage the SGI Sub-Portfolio.

CHANGES TO THE PRINCIPAL INVESTMENT STRATEGIES

Currently, the Series' investment objective is to seek long-term growth of
capital by investing, under normal market conditions, approximately 50% of its
total assets according to a long/short strategy (the "Mainstream Sub-Portfolio")
managed by the Series' current sub-adviser, Mainstream Investment Advisers, LLC
("Mainstream"), and 50% of its total assets, managed directly by the Investment
Manager, in a portfolio of equity securities, equity derivatives and fixed
income securities (the "Investment Manager Sub-Portfolio") that is intended to
closely track the performance of the S&P 500 Composite Stock Price Index (the
"S&P 500 Index"). While the Series has the ability to invest up to 25% of its
assets in foreign securities, it has not yet done so. Mainstream and the
Investment Manager each currently manages its allocation of the Series' assets
according to its respective strategy, and their trading decisions are made
independently.

At a meeting held on May 9, 2008, the Investment Manager proposed, and the Board
approved, certain changes to the Series' principal investment strategies. The
Board approved the creation of the SGI Sub-Portfolio, which would be managed by
SGI according to a global long/short strategy and thus would invest in foreign
securities. In order to facilitate the management of the SGI Sub-Portfolio, the
Board approved an increase the percentage of the Series' assets that may be
invested in foreign securities from 25% to 50% of the Series' assets. The Board
also approved a new allocation of the Series' assets whereby the Series would
have approximately 37.5% of its assets allocated to the Mainstream
Sub-Portfolio; 37.5% of its assets allocated to the SGI Sub-Portfolio; and 25%
of its assets allocated to the Investment Manager Sub-Portfolio.

The Investment Manager believes that the changes to the principal investment
strategies will allow the Series to take greater advantage of opportunities
presented by investments outside of the United States and will better position
the Series in the marketplace.

CHANGES TO THE FEE STRUCTURE

In connection with the foregoing changes, the Board approved the Amended
Advisory Agreement, which, if approved by shareholders, would eliminate the
performance-based investment advisory fee currently payable to the Investment
Manager. As further described below under the discussion of Proposal 1, the
Investment Manager currently receives an advisory fee from the Series that has
two components. The first component is a monthly base fee equal to an annual
rate of 2.00% of the Series' average daily net assets over the month (the
"asset-based component"). The second component is a performance adjustment that
either increases or decreases the base fee each month, depending on how the
Series performed relative to the S&P 500 Index during the measuring period (the
"performance-based component"). The new advisory fee, based solely on a fixed
asset-based fee, should generally result in lower fees to the Series and will
facilitate the implementation of the changes to the Series' principal investment
strategies (notably because it will facilitate the computation and payment by
the Investment Manager of the sub-advisory fees payable to each sub-adviser),
reduce the administrative difficulties tied to the computation of
performance-based fees, and result in a level of Series fees that is more
predictable.

If this proposal is approved, the investment sub-advisory agreement with
Mainstream (the "Mainstream Sub-Advisory Agreement") will be amended to provide
for the payment by the Investment Manager of a fixed sub-advisory fee instead of
a performance-based fee comparable to that currently payable by the Series to
the Investment Manager. This amendment to the Mainstream Sub-Advisory Agreement
does not require shareholder approval.


                                       2


CHANGES TO THE SUB-ADVISORY STRUCTURE

The Board believes that the appointment of SGI as a new sub-adviser to manage
the SGI Sub-Portfolio would be in the best interests of Series shareholders.
This appointment is subject to shareholder approval. If the SGI Sub-Advisory
Agreement is approved by shareholders, effective on or about August 18, 2008,
SGI will be appointed as an investment sub-adviser to the Series pursuant to the
terms of the agreement, as further described below under the discussion of
Proposal 2.

THE BOARD RECOMMENDS THAT THE SHAREHOLDERS OF THE SERIES APPROVE THE AMENDED
ADVISORY AND SGI SUB-ADVISORY AGREEMENTS.

                                   PROPOSAL 1

                  APPROVAL OF THE AMENDED MANAGEMENT AGREEMENT

At its meeting, the Board determined that entering into the Amended Advisory
Agreement would be in the best interests of Series shareholders. After careful
consideration and upon the recommendation of the Investment Manager and the
management of the Company, the Board, including a majority of Directors who are
not "interested persons" (as defined under the Investment Company Act of 1940
("1940 Act")) of the Company and who are not interested persons of any party to
the Amended Advisory Agreement (the "Independent Directors"), unanimously
approved the Amended Advisory Agreement, subject to shareholder approval. Under
the Amended Advisory Agreement, the Series would no longer pay an investment
advisory fee with a performance-based component. Instead, the Series would pay
the Investment Manager an annual fee of 1.25% of the Series' average daily net
assets. For your reference, a form of the Amended Advisory Agreement is attached
as Exhibit A.

COMPARISON OF THE CURRENT ADVISORY AGREEMENT WITH THE AMENDED ADVISORY AGREEMENT

The terms of the Amended Advisory Agreement are substantially identical to those
of the Current Advisory Agreement, except with respect to the fee payable by the
Series (see below) and its term. Consequently, the Investment Manager will
continue to render substantially the same services to the Series pursuant to the
Amended Advisory Agreement that it currently renders.

The Investment Manager. Security Investors, LLC, located at One Security Benefit
Place, Topeka, Kansas 66636-0001, currently serves as investment adviser to the
Series pursuant to an investment advisory agreement, which became effective on
May 2, 2003, and amended and restated as of November 18, 2005 (the "Current
Advisory Agreement"). The Current Advisory Agreement was approved by the Board
for an initial term of two years and is approved annually thereafter in
accordance with applicable requirements. The Current Advisory Agreement was last
approved by the Directors on November 9, 2007, and was last approved by
shareholders on January 26, 2000. If the Amended Advisory Agreement is approved
by shareholders, it will continue for an initial term of two years and for
subsequent one-year terms so long as it is renewed annually in accordance with
its terms (see discussion under "Term and Continuance" below).

The name, address and principal occupation of the principal executive officer
and managing member of the Investment Manager is set forth in Exhibit B-1, as is
information regarding the ownership of the Investment Manager. A list of the
directors/officers of the Company who hold positions with the Investment Manager
is set forth in Exhibit B-2. Set forth in Exhibit B-3 is a list of other
registered investment companies with similar investment objectives as the
Series, for which the Investment Manager acts as investment manager, adviser or
sub-adviser.

Duties of the Investment Manager. Under the Current and Amended Advisory
Agreements (together, the "Advisory Agreements"), the Investment Manager manages
the investment operations of the Series and supervises the composition of the
Series' portfolio, including the purchase, retention and disposition of
portfolio securities, subject to the Board's supervision. It is authorized to
enter into investment sub-advisory agreements for investment advisory services
in connection with the management of the Series. The Investment Manager has
responsibility for all investment advisory services furnished pursuant to any
investment sub-advisory agreement. The Investment Manager bears: (a) all
expenses incurred by the Investment Manager or by the Series in connection with
managing the ordinary course of the business of


                                       3


the Series, other than those assumed by the Series; and (b) the fees payable to
a sub-adviser pursuant to investment sub-advisory agreements between the
Investment Manager and any sub-advisers.

Limitation of Liability. Under each Advisory Agreement, so long as the
Investment Manager provides the Series the benefit of its best judgment and
effort in rendering investment advisory services, the Investment Manager is not
be liable for any errors of judgment or mistake of law, or for any loss arising
out of any investment if the investment is made with due care and in good faith.
The Investment Manager is not protected for losses arising 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 investment advisory duties.

Term and Continuance. Each Advisory Agreement provides for an initial term of
two years from the date of implementation. Thereafter, if not terminated, each
Advisory Agreement continues in effect 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
the Company, or by the vote of holders of a majority of the outstanding voting
securities of the Series, and (b) the vote of a majority of the Independent
Directors cast in person at a meeting of such Directors called for the purpose
of voting upon such approval.

Each Advisory Agreement may be terminated with respect to the Series at any time
without payment of any penalty, by the Company upon the vote of either a
majority of the Company's Board or a majority of the Independent Directors or by
a majority of the outstanding voting securities of the Series, or by the
Investment Manager, in each case on 60 days' written notice to the other party.
Each Advisory Agreement will terminate automatically in the event of its
"assignment" (as that term is defined under the 1940 Act).

DISCUSSION OF THE FEE STRUCTURE UNDER THE CURRENT AND AMENDED ADVISORY
AGREEMENTS

Advisory Fees under the Current Advisory Agreement. The Investment Manager
currently receives an advisory fee from the Series that has two components. The
first component is the asset-based component, which is a monthly base fee equal
to an annual rate of 2.00% of the Series' average daily net assets over the
month. The second component is the performance-based component, which is a
performance adjustment that either increases or decreases the asset-based
component fee each month, depending on how the Series performed relative to the
S&P 500 Index during the "Measuring Period," which is a twelve-month period
ending on the last day of the month for which the advisory fee is calculated.

Each month, the positive (or negative) performance adjustment rate is equal to
0.75% multiplied by the ratio of the number of percentage points by which the
investment performance of the Series exceeds (or lags) the investment record of
the S&P 500 Index over the Measuring Period as compared to 15 percentage points.
For example, for a month, if the investment performance of the Series is 6.6%
and the investment record of the S&P 500 Index is 0%, the ratio would be 6.6 to
15, or 0.44, times 0.75%, for an upward performance adjustment at an annual rate
of 0.33% of average daily net assets over the Measuring Period. Similarly, for a
month, if the investment performance of the Series is -10.0% and the investment
record of the S&P 500 Index is 0%, the ratio would be 10 to 15, or 0.667, times
0.75%, for a downward performance adjustment at an annual rate of 0.50% of
average daily net assets over the Measuring Period.

Consequently, each month, when the Series' investment performance matches the
investment record of the S&P 500 Index over the Measuring Period, the Investment
Manager receives only the amount of the asset-based component of the fee. Each
month, if the investment performance of the Series exceeds the investment record
of the S&P 500 Index over the Measuring Period, the performance-based component
of the fee increases the fee paid to the Investment Manager, reaching a maximum
monthly fee of 1/12th of 2.00% of the Series' average daily net assets over the
month, plus 1/12th of 0.75% of the Series' average daily net assets over the
Measuring Period when the Series' investment performance is superior by 15
percentage points or more to the investment record of the S&P 500 Index over the
Measuring Period. Each month, if the investment performance of the Series trails
the investment record of the S&P 500 Index over the Measuring Period, the
performance-based component of the fee decreases the fee paid to the Investment
Manager, reaching a minimum monthly fee of 1/12th of 2.00% of the Series'
average daily net assets over the month, less 0.75% of the Series' average daily
net assets over the Measuring Period when the Series' investment performance
lags by 15 percentage points or more the investment record of the S&P 500 Index
over the Measuring Period.

                                       4


The performance-based component of the fee is calculated on the basis of the
"rolling" 12 month Measuring Period, so that a fee rate calculated on the basis
of investment performance over a 12 month period will apply only for that month,
and then will be subject to recalculation for the following month on the basis
of the Series' investment performance over the Measuring Period ending that
month.

Under the fee arrangement set forth in the Current Advisory Agreement, it is
important to note that the controlling factor is not whether the Series'
investment performance is positive or negative, but whether it exceeds or lags
the investment record of the S&P 500 Index. Accordingly, it is possible that the
Series could pay the Investment Manager the maximum advisory fee even though the
Series had negative investment performance during the Measuring Period if the
Series' investment performance significantly exceeded the investment record of
the S&P 500 Index during the Measuring Period. Similarly, the Series could pay
the Investment Manager the maximum advisory fee even though the Investment
Manager had negative performance in the sub-portfolio it manages if overall
Series performance significantly exceeded the S&P 500 Index due to the level of
performance of Mainstream, the current sub-adviser to the Series. The "net
advisory fee" is equal to the difference between the advisory fee paid by the
Series and the sub-advisory fee paid by the Investment Manager to Mainstream
(which is not necessarily paid out of advisory fees received by the Investment
Manager). The Series' investment performance is compared against the investment
record of the S&P 500 Index only on the basis of a rolling 12 month period, and
not on the basis of relative performance over a longer period. The base fee, as
adjusted may be higher than investment advisory fees typically paid by mutual
funds.

The following table includes examples showing the annual fees that the
Investment Manager would earn at various levels of investment performance of the
Series and the S&P 500 Index assuming that the average daily net assets of the
Series remain constant over the Measuring Period:



                                                                                           
----------------------------------------------------------------------------------------------------------------------------
     % POINT DIFFERENCE BETWEEN
   PERFORMANCE OF THE SERIES AND       ANNUAL BASE     PERFORMANCE ADJUSTMENT FROM BASE       TOTAL ADVISORY FEE PAID
           S&P 500 INDEX             ADVISORY FEE(1)     ADVISORY FEE (ANNUALIZED)(2)        TO MANAGER (ANNUALIZED)(3)
----------------------------------------------------------------------------------------------------------------------------
                15%                       2.00%                     +0.75%                             2.75%
----------------------------------------------------------------------------------------------------------------------------
                10%                       2.00%                     +0.50%                             2.50%
----------------------------------------------------------------------------------------------------------------------------
                 5%                       2.00%                     +0.25%                             2.25%
----------------------------------------------------------------------------------------------------------------------------
                 0%                       2.00%                      0.00%                             2.00%
----------------------------------------------------------------------------------------------------------------------------
                -5%                       2.00%                     -0.25%                             1.75%
----------------------------------------------------------------------------------------------------------------------------
                -10%                      2.00%                     -0.50%                             1.50%
----------------------------------------------------------------------------------------------------------------------------
                -15%                      2.00%                     -0.75%                             1.25%
----------------------------------------------------------------------------------------------------------------------------



1    Calculated monthly (i.e., 1/12th of 2.00%) on the basis of average net
     assets over the month during which the fee is calculated.

2    Calculated monthly on the basis of the Series' average net assets over the
     Measuring Period.

3    By virtue of using a "rolling" Measuring Period and calculating the base
     fee and the performance adjustment on different asset bases, the actual
     advisory fees paid by the Series may differ from the maximum and annual fee
     rates shown above, particularly if the average daily net assets of the
     Series do not remain constant during the Measuring Period.
--------------------------------------------------------------------------------


Advisory Fees under the Amended Advisory Agreement. Under the fee structure set
forth in the Amended Advisory Agreement, the Series would no longer pay a
performance-based component and the fee structure would be a fixed advisory fee
paid at an annual rate of 1.25% of the Series' average daily net assets.

The foregoing discussion is qualified in its entirety by reference to the Form
of Amended Advisory Agreement.

COMPARISON OF THE FEE STRUCTURE UNDER THE CURRENT AND AMENDED ADVISORY
AGREEMENTS

The advisory fee under the Amended Advisory Agreement is the minimum fee payable
under the Current Advisory Agreement, assuming that the average daily net assets
of the Series remain constant over the performance period. (In fact, under the
Current Advisory Agreement, by virtue of using a "rolling" Measurement Period
and calculating the base fee and performance-based component on different asset
bases, the actual minimum advisory fee paid by the Series could be lower than
1.25% (i.e., the proposed advisory fee) if the average daily net assets of the
Series decline over the Measurement Period and the Series' performance lags that
of the Series' index by more

                                       5


than 15 percentage points and similarly, it could be higher than 2.75% if assets
increase and performance is superior to that of the Series' index by more than
15 percentage points). Whether the fee structure under the Current Advisory
Agreement could in fact result in higher fees than the fee structure under the
Amended Advisory Agreement depends on the Series' past and future performance
and growth in average net assets. Based on current data, however, the proposed
fixed advisory fee under the Amended Advisory Agreement would be lower.

The following table compares the Series' advisory fee as calculated under the
terms of the Current Advisory Agreement (including the performance-based
component) for the fiscal year ended December 31, 2007 to the advisory fee the
Series would have incurred if the Amended Advisory Agreement had been in effect
during the same period. Advisory fees are expressed in dollars and as
percentages of the Series' average net assets for the relevant periods:



                                                                                                    
----------------------------------- ------------------------------- ------------------------------ ---------------------------------
              PERIOD                  CURRENT ADVISORY AGREEMENT*     AMENDED ADVISORY AGREEMENT*             DIFFERENCE
----------------------------------- ------------------------------- ------------------------------ ---------------------------------
Fiscal  year  ended  December  31,                2.05%                          1.25%                         (0.80)%
2007
----------------------------------- ------------------------------- ------------------------------ ---------------------------------
                                                $828,638                       $505,783                       $(322,855)
------------------------------------------------------------------------------------------------------------------------------------
* Percentages expressed by reference to average daily net assets.
------------------------------------------------------------------------------------------------------------------------------------



SERIES FEES AND EXPENSES

The following tables provide data concerning the Series' advisory fees and
expenses as a percentage of the average net assets for the fiscal year ended
December 31, 2007 under the Current Advisory Agreement and the Amended Advisory
Agreement.

Annual Operating Expenses (expenses that are deducted from the Series' assets)


                                                                                                  
----------------------------------------------------------------------- ------------------------------ -----------------------------
                                                                        CURRENT ADVISORY AGREEMENT     AMENDED ADVISORY AGREEMENT*
----------------------------------------------------------------------- ------------------------------ -----------------------------
Advisory fee                                                            2.05%(1)                       1.25%
----------------------------------------------------------------------- ------------------------------ -----------------------------
Other expenses                                                          0.45%                          0.45%
----------------------------------------------------------------------- ------------------------------ -----------------------------
Total Annual Operating Expenses                                         2.50%                          1.70% (2)
----------------------------------------------------------------------- ------------------------------ -----------------------------

------------------------------------------------------------------------------------------------------------------------------------



*    Pro forma proposed fees reflect estimated fees and expenses of the Series
     after giving effect to the Amended Advisory Agreement as of December 31,
     2007. Pro forma numbers are estimated in good faith and are hypothetical.

1    The Series pays an advisory fee that will range from 1.25% to 2.75% of
     average daily net assets based upon the Series' performance relative to the
     S&P 500 Index, assuming average daily assets remain constant during the
     Measuring Period.

2    Although it is not reflected in the table, the Investment Manager has
     contractually agreed through January 31, 2010 to waive fees and/or
     reimburse Series expenses to the extent necessary to limit the ordinary
     operating expenses (exclusive of brokerage costs, dividends on securities
     sold short, acquired fund fees and expenses, interest, taxes, litigation,
     indemnification, and extraordinary expenses) ("Operating Expenses") of the
     Series to 1.70%. The Investment Manager is entitled to reimbursement by the
     Series of fees waived or expenses reimbursed during any of the previous 36
     months beginning on the date of the expense limitation agreement if on any
     day the estimated annualized Operating Expenses are less than the indicated
     percentages.

--------------------------------------------------------------------------------

Example: The examples below assume that you invest $10,000 in Series for the
time periods indicated. Each Example also assumes that your investment has a 5%
return each year and that the Series' operating expenses remain the same.
Although your actual costs may be higher or lower, based on these assumptions
your costs would be as follows:

You would pay the following expenses if you redeemed your shares at the end of
each period.



                                                                            
--------------------------------------------- ----------- ------------ ------------- -------------
                                                1 YEAR      3 YEARS      5 YEARS       10 YEARS
--------------------------------------------- ----------- ------------ ------------- -------------

--------------------------------------------- ----------- ------------ ------------- -------------
Current Advisory Agreement                       $253        $779         $1,331        $2,836
--------------------------------------------- ----------- ------------ ------------- -------------
Amended Advisory Agreement*                       173         536          923          2,009
--------------------------------------------- ----------- ------------ ------------- -------------



*    Pro forma proposed examples reflect estimated fees and expenses of the
     Series after giving effect to the Amended Advisory Agreement as of December
     31, 2007. Pro forma numbers are estimated in good faith and are
     hypothetical.


                                       6


EVALUATION BY THE BOARD

On May 9, 2008, at an in-person meeting of the Board at which a majority of the
Directors, including a majority of the Independent Directors, were in
attendance, the Board considered whether the Amended Advisory Agreement, SGI
Sub-Advisory Agreement and Mainstream Sub-Advisory Agreement (together, the
"Agreements") should be approved for a two-year period, subject to shareholder
approval. Following their review and consideration, the Directors determined
that the Agreements would enable shareholders of the Series to continue to
obtain high quality services at a cost that is appropriate, reasonable, and in
the best interests of its shareholders. The Board, including the Independent
Directors, unanimously approved the Agreements. In reaching their decision, the
Directors requested and obtained from the Investment Manager, SGI and Mainstream
such information as they deemed reasonably necessary to evaluate the proposed
Agreements. The Directors also carefully considered information that they had
received throughout the year as part of their regular oversight of the Series
(including information from the Investment Manager and Mainstream), as well as
information about SGI, which serves as investment sub-adviser to other series
within the Security Funds complex. The Directors had also previously obtained
and reviewed certain comparative information regarding performance of the Series
relative to performance of other comparable mutual funds at its November 9, 2007
meeting, and the performance of other accounts and mutual funds managed by SGI
at its May 9, 2008 meeting. The Directors also received information about the
cost of changing the principal investment strategies of the Series, including
the cost of soliciting proxies to approve Proposals 1 and 2, and the Board
agreed that half of the cost would be borne by the Series and half by the
Investment Manager. In considering the Agreements, the Directors evaluated a
number of considerations that they believed, in light of the legal advice
furnished to them by counsel and independent legal counsel and their own
business judgment, to be relevant. They based their decisions on the following
considerations, among others, although they did not identify any consideration
or particular information that was controlling of their decisions:

The nature, extent and quality of the advisory service to be provided. The Board
of Directors concluded that the Investment Manager and Mainstream are capable of
continuing to provide high quality services to the Series, as indicated by the
nature and quality of services provided in the past, their management
capabilities demonstrated with respect to other series of the Company, in the
case of the Investment Manager, and another mutual fund managed by the
Investment Manager and Mainstream, the professional qualifications and
experience of the Investment Manager's and Mainstream's portfolio managers, and
the Investment Manager's investment and management oversight processes. The
Directors also determined that the Investment Manager and Mainstream proposed to
provide investment and related services that were of the same quality and
quantity as services provided to the Series in the past, and that these services
are appropriate in scope and extent in light of the Series' operations, the
competitive landscape of the investment company business and investor needs.

In considering the capabilities of SGI, the Board took into account the fact
that SGI was created last year as an affiliate of the Investment Manager and was
formed for the initial purpose of acquiring the assets of Avera Global Partners
LP ("Avera") so that the key personnel of Avera could become the key personnel
of SGI, operating independently and retaining their autonomous investment
advisory capabilities. The Directors also noted that, since August 1, 2007, SGI
has served as a sub-adviser to Security Equity Fund Global Fund and SBL Fund
Series D (Global Series). The Board also considered the nature and quality of
the investment sub-advisory services anticipated to be provided by SGI to the
Series. The Board concluded that SGI would be capable of providing high quality
services to the Series, as indicated by the nature of services provided to other
accounts and mutual funds managed by SGI, SGI's advisory capabilities
demonstrated with respect to these other accounts and mutual funds, the
experience, capability and integrity of SGI's advisory, the financial resources
of SGI, and the professional qualifications and experience of SGI's portfolio
advisory team. The Board also concluded that SGI proposed to provide services
that are appropriate in scope and extent in light of the Series' investment
objectives, policies and new investment strategies.

The investment performance of the Series. The Directors concluded on the basis
of information supplied by Lipper and Morningstar at its last annual contract
renewal meeting in November 2007 that the Investment Manager and Mainstream had
achieved investment performance that was satisfactory relative to comparable
funds over trailing periods. On the basis of the Directors' assessment of the
nature, extent and quality of advisory services to be provided or procured by
the Investment Manager and Mainstream, the Directors concluded that the
Investment Manager and Mainstream are capable of generating a level of long-term
investment performance for the Investment Manager and Mainstream Sub-Portfolios
of the Series, respectively, that is appropriate in light of the Series'
investment objectives, policies and strategies and


                                       7


competitive with many other investment companies. The Board noted that the
proposed advisory fee under the Amended Advisory Agreement is expected to
generally result in lower advisory fees, which could lower total operating
expenses and could contribute to increased Series performance.

With respect to SGI, the Board reviewed comparative information regarding the
performance of SGI's portfolio managers in managing accounts that are reasonably
comparable to the proposed SGI Sub-Portfolio of the Series. The Board noted that
accounts managed by SGI had performed satisfactorily over the past three years.
The Directors noted that SGI would only be responsible for managing the SGI
Sub-Portfolio of the Series and noted the differences in investment styles and
strategy between Mainstream, the Investment Manager and SGI, and determined that
SGI's strategy, with its investment processes and experience with investing in
foreign securities, offered shareholders of the Series a new and attractive
opportunity for seeking to achieve their investment goals. The Board concluded,
based in particular on the Directors' assessment of the nature, extent and
quality of investment sub-advisory services expected to be provided by SGI, and
SGI's performance in managing similar accounts and mutual funds, that SGI is
capable of generating a level of investment performance for the SGI
Sub-Portfolio of the Series that is appropriate in light of the Series'
investment objective and policies and competitive with other investment
companies.

The cost of advisory and sub-advisory services provided and the level of
profitability. On the basis of the Board's review of the proposed advisory fees
to be charged by the Investment Manager for investment advisory services, the
Investment Manager's financial statements, the Investment Manager's estimated
net advisory income resulting from its management of the Series under the new
fee arrangement, and the estimated profitability of the Investment Manager's
relationships with the Series, the Directors concluded that the anticipated
level of profitability to the Investment Manager as to the Series is reasonable.
The Board considered the anticipated impact that the new fixed advisory fee
arrangement would have on the Investment Manager's profitability. It also
compared the potential benefits to shareholders of having a fixed advisory fee
instead of a fee with a performance-based component. In particular, the Board
noted that: the proposed fee would be equal to the lowest level of advisory fee
payable under the Current Advisory Agreement (assuming that asset levels remain
constant over the Measuring Period), resulting in lower advisory fees and
reduced total operating expenses; the fixed fee would result in a level of
Series expenses that is more predictable; a fixed fee is more common among
investment companies, which will facilitate fund comparisons; and a fixed fee
will facilitate payment of predictable sub-advisory fees by the Investment
Manager to sub-advisers. The Board noted that the fixed sub-advisory fee payable
to SGI would facilitate the implementation of the new investment strategies.

The Board concluded that the level of anticipated investment sub-advisory fees
payable under the SGI and Mainstream Sub-Advisory Agreement are appropriate in
light of the estimated expense ratios of the Series and the competitiveness of
the Series' expenses when compared to the expense ratios of comparable
investment companies (based on information prepared by the Investment Manager).

Whether fee levels reflect economies of scale and the extent to which economies
of scale would be realized as the Series grows. The Directors concluded that the
Series' new advisory fee of 1.25% of average daily net assets payable to the
Investment Manager appropriately reflects the current economic environment for
the Investment Manager and the competitive nature of the mutual fund market. The
Directors further determined that the Series has yet to achieve meaningful
economies of scale, but that the proposed fixed advisory fee nevertheless would
generally be lower than the current fee and, thus, would benefit the Series and
shareholders. The Directors also noted that they will have the opportunity to
periodically reexamine whether the Series has achieved economies of scale and
the appropriateness of the advisory fee payable by the Series to the Investment
Manager (as well as the sub-advisory fees that the Investment Manager pays to
Mainstream and SGI) in the future if the Agreements become effective.

Benefits (such as soft dollars) to the Investment Manager, SGI and Mainstream
and their affiliates from their relationship with the Series. The Directors
concluded during their prior contract renewal meeting that other benefits
described by the Investment Manager and Mainstream from their past or future
relationship with the Series, including "soft dollar" benefits in connection
with brokerage transactions, are reasonable and fair, and consistent with
industry practice and the best interests of the Series and its shareholders. In
addition, the Directors had also determined that the administration, transfer
agency and fund accounting fees paid by the Series to the Investment Manager are
reasonable, fair and in the best interests of shareholders in light of the
nature and quality of the services provided, the associated costs, and the
necessity of the services for the Series' operations and would remain the same
under the proposed arrangements. The Board noted that it


                                       8


had considered SGI's practices and benefits in the past with other funds in the
Security Funds complex and that it would review SGI's benefits from its
relationship with the Series if the Agreements become effective.

Other considerations. In approving the Agreements, the Directors determined that
the Investment Manager, SGI (with respect to other series in the Security Funds
complex for which SGI serves as sub-adviser) and Mainstream have made a
substantial commitment to the recruitment and retention of high quality
personnel, and maintain the financial, compliance and operational resources
reasonably necessary to manage the Series in a professional manner that is
consistent with the best interests of the Series and its shareholders. The
Directors also considered that the Agreements will permit the ongoing management
of the Series with three sub-portfolios with distinct investment strategies,
each to be managed by specialized portfolio management personnel.

THE BOARD, INCLUDING THE INDEPENDENT DIRECTORS, UNANIMOUSLY RECOMMENDS THAT
SHAREHOLDERS VOTE "FOR" THE APPROVAL OF THE AMENDED ADVISORY AGREEMENT.
UNMARKED, PROPERLY SIGNED AND DATED PROXIES WILL BE SO VOTED.



                                   PROPOSAL 2

                               APPROVAL OF THE SGI
                             SUB-ADVISORY AGREEMENT

As discussed above, the Board approved changes to the Series' principal
investment strategy, including the addition of the SGI Sub-Portfolio. It is
proposed that SGI be the investment sub-adviser responsible for managing the SGI
Sub-Portfolio of the Series and that the Mainstream Sub-Advisory Agreement be
amended to provide for a fixed sub-advisory fee equal to that payable to SGI. At
its May 9, 2008 meeting, the Board approved the SGI Sub-Advisory and Mainstream
Sub-Advisory Agreements pursuant to which the Investment Manager will pay each
of SGI and Mainstream a fixed asset-based fee equal to 1.45% of the average
daily net assets in the SGI and Mainstream Sub-Portfolios of the Series,
respectively, on an annual basis.

The Investment Manager and the Series have received an order from the SEC that
permits them to retain investment sub-advisers or amend the terms of an existing
sub-advisory agreement without shareholder approval, except when the sub-adviser
is affiliated with the Investment Manager This order permits the Investment
Manager to amend the terms of the current sub-advisory agreement with Mainstream
upon Board approval but without shareholder approval because Mainstream is not
affiliated to the Investment Manager. However, SGI is affiliated with the
Investment Manager, so its appointment is subject to shareholder approval.

THE PROPOSED SGI SUB-ADVISORY AGREEMENT

Background Information on SGI. SGI, with its principal place of business at Two
Embarcadero Center, Suite 2350, San Francisco, CA 94111, is an investment
adviser registered as such with the SEC. SGI is a recently-created subsidiary of
Security Benefit Life Insurance Company ("Security Benefit") that was formed for
the initial purpose of acquiring the assets of Avera. The key personnel of Avera
became the key personnel of SGI effective June 15, 2007. As of March 31, 2008,
SGI had approximately $481,820,869 in assets under management. SGI currently
provides investment management and related services to retirement accounts,
pooled investment vehicles and mutual funds. The name, address and principal
occupation of the principal executive officer and each managing member of SGI
are set forth in Exhibit C. SGI is a wholly owned subsidiary of Security
Benefit, which is in turn controlled by Security Benefit Corporation. Security
Benefit Corporation is a wholly owned subsidiary of Security Benefit Mutual
Holding Company. SGI may be deemed to be an affiliated person of the Investment
Manager. A list of the directors/officers of the Company who hold positions with
SGI is set forth in Exhibit B-2. SGI does not manage any other registered
investment companies with investment objectives similar to those of the Series.

The SGI Sub-Advisory Agreement. The following summary of the proposed SGI
Sub-Advisory Agreement summarizes the material terms of the SGI Sub-Advisory
Agreement and is qualified in its entirety by reference to the SGI Sub-Advisory
Agreement, a form of which is attached as Exhibit D.


                                       9


The SGI Sub-Advisory Agreement provides that, subject to the Investment
Manager's and the Board's supervision, SGI is responsible for managing a portion
of the Series' assets, including making investment decisions and placing orders
to purchase and sell securities for the Series, all in accordance with the
investment objective and policies of the Series as reflected in its current
prospectus and statement of additional information and as may be adopted from
time to time by the Board. In accordance with applicable requirements, SGI will
also maintain, and provide the Investment Manager with, all books and records
relating to the transactions it executes or that are otherwise required, and
render to the Series and the Investment Manager such periodic and special
reports at any time upon reasonable request. The SGI Sub-Advisory Agreement
provides that, in the absence of willful misfeasance, bad faith, or gross
negligence in the performance of its duties, or breach of its duties thereunder,
SGI will not be liable for any act or omission in connection with its activities
as sub-adviser to the Series.

Under its terms, the SGI Sub-Advisory Agreement will remain in full force and
effect for a period of up to two years from the date of its execution, and will
continue thereafter as long as its continuance is approved at least annually by
the Board or by vote of a majority of the outstanding shares of the Series, as
well as by a majority of the Independent Directors by vote cast in person at a
meeting called for that purpose. However, the SGI Sub-Advisory Agreement may be
terminated at any time upon 60 days' written notice without the payment of any
penalty, either by vote of the Board or by vote of a majority of the outstanding
shares of the Series. The Investment Manager may terminate the SGI Sub-Advisory
Agreement upon breach by SGI of its representations or warranties, which shall
not have been cured within 20 days of receipt of written notice of such breach,
or SGI becoming unable to discharge its duties and obligations under the SGI
Sub-Advisory Agreement. Additionally, the SGI Sub-Advisory Agreement will
terminate immediately in the event of its assignment or upon the termination of
the Series' Advisory Agreement with the Investment Manager. SGI may terminate
the SGI Sub-Advisory Agreement on 120 days' written notice to the Investment
Manager and the Series.

Fees. Under the SGI Sub-Advisory Agreement, SGI will receive monthly
compensation from the Investment Manager (and not the Series) at an annual rate
of 1.45% of the average daily closing value of the net assets in the SGI
Sub-Portfolio of the Series. During the fiscal year ended December 31, 2007, SGI
was not yet serving as a sub-adviser to the Series, and thus the Investment
Manager did not pay or accrue an investment advisory fee to SGI.

Evaluation by the Board. A discussion of the Board's consideration of the SGI
Sub-Advisory Agreement is included under Proposal 1 in the section titled
"Evaluation by the Board." That discussion also includes the Board's approval of
the Mainstream Sub-Advisory Agreement.

THE BOARD, INCLUDING THE INDEPENDENT DIRECTORS, UNANIMOUSLY RECOMMENDS THAT
SHAREHOLDERS VOTE "FOR" THE APPROVAL OF THE SGI SUB-ADVISORY AGREEMENT.
UNMARKED, PROPERLY SIGNED AND DATED PROXIES WILL BE SO VOTED.

                                 OTHER BUSINESS

The Directors do not know of any matters to be presented at the Special Meeting
other than those set forth in this proxy statement. If other business should
properly come before the Special Meeting, proxies will be voted in accordance
with the judgment of the persons named in the accompanying proxy.

                             ADDITIONAL INFORMATION

ADMINISTRATOR, PRINCIPAL UNDERWRITER, AND TRANSFER AGENT

The Investment Manager also serves as the Series' administrator and transfer
agent. The principal underwriter/distributor is Security Distributors, Inc. (the
"Distributor"), located at One Security Benefit Place, Topeka, KS 66636-0001.
During the fiscal year ended December 31, 2007, the Series paid the Investment
Manager $89,325 for administrative and transfer agent services, and the Series
paid the Distributor $0 for distribution services. If the proposed Amended
Advisory and SGI Sub-Advisory Agreements are approved, the Investment Manager
and the Distributor will continue to render the same administrative, transfer
agency and distribution services to the Series as they currently render. The
Investment Manager is wholly owned by its members, Security Benefit and Security
Benefit Corporation. Security Benefit, a life insurance company, incorporated
under the laws of Kansas, is controlled by Security Benefit Corporation.
Security Benefit Corporation is wholly-owned by Security Benefit Mutual Holding
Company, One Security Benefit Place, Topeka,


                                       10


Kansas 66636-0001. The Investment Manager is an indirect, and the Distributor is
a direct, wholly-owned subsidiary of Security Benefit Corporation.

BACKGROUND INFORMATION ON MAINSTREAM.

Mainstream Investment Advisers, LLC, 101 West Spring Street, New Albany, Indiana
47150, is currently the only investment sub-adviser to the Series and has served
as investment sub-adviser with regard to the Mainstream Sub-Portfolio of the
Series pursuant to an investment sub-advisory agreement between the Investment
Manager and Mainstream dated July 1, 2003, which was last approved by the Board
at a meeting held on November 9, 2007. Pursuant to this agreement, Mainstream
furnishes investment advisory services, supervises and arranges for the purchase
and sale of securities on behalf of the Mainstream Sub-Portfolio of the Series
and provides for the compilation and maintenance of records pertaining to such
investment advisory services, subject to the control and supervision of the
Company's Board and the Investment Manager. Amendments to the Mainstream
Sub-Advisory Agreement will be implemented only if Proposal 1 is approved.


AFFILIATIONS AND AFFILIATED BROKERAGE.

During the fiscal year ended December 31, 2007, the Series paid no commissions
on portfolio brokerage transactions to brokers who may be deemed to be
affiliated persons of the Series, the Investment Manager, Mainstream, SGI, or
affiliated persons of such persons ("Affiliated Brokers").

SHAREHOLDER REPORTS

Shareholders can find important information about the Series in the Company's
annual report dated December 31, 2007, including financial reports for the
fiscal year ended December 31, 2007, which has been provided by the respective
Insurance Companies from which you have purchased a variable insurance contract.
You may obtain copies of this report without charge by writing to SBL Fund, or
by calling the telephone number shown on the front page of this proxy statement.

The Series is subject to the informational requirements of the Securities
Exchange Act of 1934, and certain other federal securities statutes, and files
reports and other information with the SEC. Proxy materials, reports and other
information filed by the Series can be inspected and copied at the Public
Reference Facilities maintained by the U.S. Securities and Exchange Commission
at 100 F Street, NE, Washington, DC 20549. The Commission maintains an Internet
web site (at http://www.sec.gov) which contains other information about the
Series.

VOTING INFORMATION

Proxy Solicitation. The principal solicitation of proxies will be by the mailing
of this proxy statement on or about June 16, 2008, but proxies may also be
solicited by telephone and/or in person by representatives of the Company,
regular employees of the Investment Manager, their affiliate(s), or The Altman
Group, a private proxy services firm. If we have not received your vote as the
date of the Special Meeting approaches, you may receive a call from these
parties to ask for your vote. Arrangements will be made with brokerage houses
and other custodians, nominees, and fiduciaries to forward proxies and proxy
materials to their principals.

The costs of the Special Meeting, including the costs of retaining The Altman
Group, preparation and mailing of the notice, proxy statement and proxy, and the
solicitation of proxies, including reimbursement to broker-dealers and others
who forwarded proxy materials to their clients, will be borne one-half by the
Series and one-half by the Investment Manager and/or its affiliates. The
estimated cost of the special meeting is approximately $5,800.

Shareholder Voting. Shareholders of the Series who own shares at the close of
business on June 9, 2008 (the "Record Date") will be entitled to notice of, and
vote at, the Special Meeting. Shareholders are entitled to one vote for each
share held and fractional votes for fractional shares held. The number of shares
of the Series as to which voting instructions may be given to the Company is
determined by dividing the amount of the shareholder's variable contract account
value attributable to the Series on the Record Date by the net asset value per
share of the Series as of the same date. Fractional


                                       11


votes will be counted. As of the Record Date, there were issued and outstanding
[ ] shares of the Series, representing the same number of votes. The Insurance
Companies who are known to have owned beneficially 5% or more of the Series'
outstanding shares as of the Record Date are listed on Exhibit E. As of the
Record Date, the Directors and officers, as a group, owned less than 1.00% of
the outstanding shares of the Series. As of the Record Date, there were no
persons who were known to control the Series.

Insurance companies that use shares of the Series as funding media for their
variable annuity contracts and variable life policies will vote shares of the
Series held by their separate accounts in accordance with the instructions
received from owners of the variable insurance contracts. An insurance company
also will vote shares of the Series held in such separate account for which it
has not received timely instructions in the same proportion as it votes shares
held by that separate account for which it has received instructions. An
insurance company whose separate account invests in the Series will vote shares
by its general account and its subsidiaries in the same proportion as other
votes cast by its separate account in the aggregate. As a result, a small number
of owners of variable annuity contracts and variable life policies could
determine the outcome of the vote if other owners fail to vote.

More than 50% of the Series' shares, represented in person or by proxy, will
constitute a quorum for the Special Meeting and must be present for the
transaction of business at the Special Meeting. Only proxies that are voted,
abstentions and "broker non-votes" will be counted toward establishing a quorum.
"Broker non-votes" are shares held by a broker or nominee as to which
instructions have not been received from the beneficial owners or persons
entitled to vote, and the broker or nominee does not have discretionary voting
power. In the event that a quorum is not present at the Special Meeting, or a
quorum is present but sufficient votes to approve Proposals 1 and/or 2 are not
received, the persons named as proxies may propose one or more adjournments of
the Special Meeting to permit further solicitation of proxies. Any such
adjournment will require the affirmative vote of a majority of the Series shares
represented at the Special Meeting in person or by proxy (excluding abstentions
and broker non-votes). The persons named as proxies will vote those proxies that
they are entitled to vote FOR Proposals 1 and 2 in favor of an adjournment of
the Special Meeting, and will vote those proxies required to be voted AGAINST
Proposals 1 and 2 against such adjournment. A shareholder vote may be taken on
any proposal prior to any such adjournment if sufficient votes have been
received and it is otherwise appropriate.

The person(s) named as proxies on the enclosed proxy card will vote in
accordance with your directions, if your proxy is received properly executed. If
we receive your proxy, and it is executed properly, but you give no voting
instructions with respect to any proposal, your shares will be voted FOR
Proposals 1 and 2. The duly appointed proxies may, in their discretion, vote
upon such other matters as may properly come before the Special Meeting.

In order that your shares may be represented at the Special Meeting, you are
requested to vote your shares by mail, the Internet or by telephone by following
the enclosed instructions. IF YOU VOTE BY TELEPHONE OR INTERNET, PLEASE DO NOT
RETURN YOUR PROXY CARD, UNLESS YOU LATER ELECT TO CHANGE YOUR VOTE. You may
revoke your proxy: (a) at any time prior to its exercise by written notice of
its revocation to the secretary of the Company prior to the Special Meeting; (b)
by the subsequent execution and return of another proxy prior to the Special
Meeting; or (c) by being present and voting in person at the Special Meeting and
giving oral notice of revocation to the chairman of the Special Meeting.
However, attendance in-person at the Special Meeting, by itself, will not revoke
a previously-tendered proxy.

Required Vote. Approval of Proposals 1 and 2 requires the vote of a "majority of
the outstanding voting securities" of the Series, which means the vote of 67% or
more of the shares that are present at the Special Meeting, if the holders of
more than 50% of the outstanding shares are present or represented by proxy, or
the vote of more than 50% of the Series' outstanding shares, whichever is less.
Accordingly, assuming the presence of a quorum, abstentions and broker non-votes
have the effect of a negative vote on Proposals 1 and 2.

Insurance Contract Owners Sharing the Same Address. As permitted by law, only
one copy of this proxy statement may be delivered to insurance contract owners
residing at the same address, unless such insurance contract owners have
notified the Company of their desire to receive multiple copies of the
shareholder reports and proxy statements that the Company sends. If you would
like to receive an additional copy, please contact the Company by writing to the
Company's address, or by calling the telephone number shown on the front page of
this proxy statement. The Company will then promptly deliver, upon request, a
separate copy of the proxy statement to any insurance contract owner residing at
an address to which only one copy was mailed. Insurance contract owners wishing
to receive separate copies of the


                                       12


Company's shareholder reports and proxy statements in the future, and insurance
contract owners sharing an address that wish to receive a single copy if they
are receiving multiple copies, should also send a request as indicated.

INSURANCE CONTRACT OWNER PROPOSALS

As a general matter, the Company does not hold annual meetings of shareholders.
Shareholders wishing to submit proposals for inclusion in a proxy statement for
a subsequent shareholders' meeting should send their written proposal to the
secretary of the Company, One Security Benefit Place, Topeka, Kansas 66636-0001.

Proposals must be received a reasonable time prior to the date of a meeting of
shareholders to be considered for inclusion in the proxy materials for the
meeting. Timely submission of a proposal does not, however, necessarily mean
that the proposal will be included. Persons named as proxies for any subsequent
shareholders' meeting will vote in their discretion with respect to proposals
submitted on an untimely basis.

TO ENSURE THE PRESENCE OF A QUORUM AT THE SPECIAL MEETING, PROMPT EXECUTION AND
RETURN OF THE ENCLOSED PROXY IS REQUESTED. A SELF-ADDRESSED, POSTAGE-PAID
ENVELOPE IS ENCLOSED FOR YOUR CONVENIENCE.


                                  By Order of the Board of Directors,

                                  /s/ Richard M. Goldman
                                  Richard M. Goldman
                                  President & Chairman of the Board of Directors


                                       13


                                LIST OF EXHIBITS

Exhibit A:        Form of Amended Advisory Agreement

Exhibit B-1:      Managing Member and Principal Executive Officer of the
                  Investment Manager

Exhibit B-2:      Directors/Officers of the Company Who Hold Positions with the
                  Investment Manager and/or SGI

Exhibit B-3:      Other Registered Investment Companies with Similar Investment
                  Objectives as the Series, for which the Investment Manager
                  Acts as Investment Manager, Adviser or Sub-Adviser

Exhibit C:        Principal Executive Officer and Managing Members of SGI

Exhibit D:        Form of SGI Sub-Advisory Agreement between the Investment
                  Manager and SGI

Exhibit E:        Beneficial Owners of 5% or More of the Outstanding Shares of
                  the Series


                                       14




                                    EXHIBIT A
                       FORM OF AMENDED ADVISORY AGREEMENT

THIS AGREEMENT, made and entered into this 27th day of January, 2000, and
amended and restated effective August 18, 2008, by and between SBL FUND, a
Kansas corporation (hereinafter referred to as the "Fund"), and SECURITY
INVESTORS, LLC (formerly, Security Management Company, LLC), a Kansas limited
liability company (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, on May 9, 2008, the Board of Directors of the Fund authorized changes
to the Management Company's compensation in connection with Series O and Series
Z;

WHEREAS, the parties hereto wish to amend the Agreement to reflect the changes
authorized by the Board of Directors of the Fund;

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 the Fund with respect to the
     investment of its assets and to supervise and arrange the purchase of
     securities for the Fund and the sale of securities held in the portfolio of
     the Fund, subject always to the supervision of the board of directors of
     the Fund (or a duly appointed committee thereof), 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.

2.   INVESTMENT ADVISORY DUTIES.

          (a) The Management Company shall regularly provide the Fund with
          investment research, advice and supervision, continuously furnish an
          investment program and recommend what securities shall be purchased
          and sold and what portion of the assets of the Fund shall be held
          uninvested and shall arrange for the purchase of securities and other
          investments for the Fund and the sale of securities and other
          investments held in the portfolio of the Fund. All investment advice
          furnished by the Management Company to the Fund 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, the Investment Advisors 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 board of directors of
          the Fund (and any duly appointed committee thereof) in regard to the
          foregoing matters and the general conduct of the Fund's business.

          (b) Subject to the provisions of the Investment Company Act of 1940
          and any applicable exemptions thereto, the Management Company is
          authorized, but is under no obligation, to enter into sub-advisory
          agreements (the "Sub-Advisory Agreements") with one or more
          subadvisers (each a "Subadviser") to provide investment advisory
          services to any series of the Fund. Each Subadviser shall have
          investment discretion with respect to the assets of the series
          assigned to that Subadviser by the Management Company. Consistent with
          the provisions of the Investment Company Act of 1940 and any
          applicable exemption

A-1



          thereto, the Management Company may enter into Sub-Advisory Agreements
          or amend Sub-Advisory Agreements without the approval of the
          shareholders of the effected series.

3.   PORTFOLIO TRANSACTIONS AND BROKERAGE.

          (a) Transactions in portfolio securities shall be effected by the
          Management Company, through brokers or otherwise (including affiliated
          brokers), 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 of portfolio position in the same securities; the
          execution capabilities required by the circumstances of the particular
          transaction; the capital to be 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, the Management Company is
          authorized to direct the execution of the portfolio transactions of
          the Fund to brokers who furnish investment information or research
          services to the Management Company. Such allocation shall be in such
          amounts and proportions as the Management Company may determine. If a
          transaction is directed to a broker supplying 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, provided that 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 by
          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. Other than as
     specifically indicated in the preceding sentence, 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; broker's commissions; taxes and governmental fees;
     membership dues; fees of custodian, transfer agent, registrar and dividend
     disbursing agent (if any); expenses (including clerical expenses) of issue,
     sale or redemption of shares of the Fund's capital stock; costs and
     expenses in connection with the registration of such 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

                                      A-2



     thereunder; expenses of preparing and distributing reports, proxy
     statements, notices and distributions to stockholders; costs of stationery;
     expenses of printing prospectuses; costs of stockholder and other meetings;
     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 the members of its board of directors.

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 Series shall pay the Management Company an annual
          fee computed on a daily basis equal to 0.50 percent of the average
          daily closing value of the net assets of Series C of the Fund, 0.65
          percent of the average daily closing value of the net assets of Series
          B of the Fund, 0.70 percent of the average daily closing value of the
          net assets of Series O, 0.75 percent of the average daily closing
          value of the net assets of Series A, Series E, Series H, Series J,
          Series P, Series V, and Series Y of the Fund, 1.00 percent of the
          average daily closing value of the net assets of Series D, Series N,
          Series Q, and Series X and 1.25 percent of the average daily closing
          value of the net assets of Series Z of the Fund. 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.

          (b) For each of the Fund's full fiscal years this Agreement remains in
          force, the Management Company agrees that if 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 within the meaning of this paragraph (b).

          (c) For each of the Fund's full fiscal years this Agreement remains in
          force, the Management Company agrees that if total annual expenses of
          each Series of the Fund identified below, exclusive of interest,
          taxes, extraordinary expenses (such as litigation), and brokerage fees
          and commissions, but inclusive of the Management Company's
          compensation, exceeds the amount set forth below (the "Expense Cap"),
          the Management Company will contribute to such Series such funds or
          waive such portion of its fee, adjusted monthly, as may be required to
          insure that the total annual expenses of the Series will not exceed
          the Expense Cap. If this Agreement shall be effective for only a
          portion of a Series' fiscal year, then the maximum annual expenses
          shall be prorated for such portion.

                                   EXPENSE CAP

                                Series H - 1.75%

                                Series Y - 1.75%

6.   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

                                      A-3



     shall, however, be construed to protect the Management Company against any
     liability to the Fund or its shareholders 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 the
     Agreement. As used in this Section 6, "Management Company" shall include
     directors, officers and employees of the Management Company, as well as the
     Management Company itself.

7.   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 securities of
     one issuer are purchased or sold, the purchase or sale of such securities
     is consistent with the investment objectives of, and, in the opinion of the
     Management Company, such securities are desirable purchases or sales for
     the portfolios of the Fund and one or more of such other investment
     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.

8.   DURATION AND TERMINATION OF AGREEMENT. This Agreement shall continue in
     force with respect to a Series for an initial term of up to two years, and
     then 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,
     or by the vote of the holders of a majority of the outstanding voting
     securities of each series of the Fund (as defined in the 1940 Act), and (b)
     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. In the event a majority of the outstanding shares of one series
     vote for continuance of the Agreement, it will be continued for that series
     even though the Agreement 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, in each case 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 officers thereto duly authorized on the day, month
and year first above written.

                                      A-4



                                        SBL FUND

                                        By
                                                --------------------------------
                                        Title:  President

ATTEST:

---------------------------------------------
Amy J. Lee, Secretary

                                        SECURITY INVESTORS, LLC

                                        By
                                                --------------------------------
                                        Title:  President

ATTEST:

---------------------------------------------
Amy J. Lee, Secretary

                                      A-5





                                   EXHIBIT B-1


    MANAGING MEMBER AND PRINCIPAL EXECUTIVE OFFICER OF THE INVESTMENT MANAGER

The business address of the managing member and principal executive officer is
Connecticut Business Center, 6 Landmark Square #471, Stamford, CT 06901-2707.




                                              
--------------------------------------------------------------------------------------------------------------
Name                        Position/Offices Held   Principal Occupation/Position
                            with Investment Manager
--------------------------------------------------------------------------------------------------------------
Richard M. Goldman          President and Managing  Senior Vice President, Security Benefit Corporation;
                            Member Representative   Director, Security Distributors, Inc.; Director, First
                                                    Security Benefit Life Insurance and Annuity Company of
                                                    New York; President and Manager, Security Global
                                                    Investors, LLC; President and Chairman of the Board,
                                                    Security Funds
--------------------------------------------------------------------------------------------------------------



Mr. Goldman serves as President and Chairman of the Board of Directors of SBL
Fund.

                                      B-1




                                   EXHIBIT B-2

          DIRECTORS/OFFICERS OF THE COMPANY WHO HOLD POSITIONS WITH THE
                         INVESTMENT MANAGER AND/OR SGI

The business address of each of the following persons, other than Richard
Goldman, is One Security Benefit Place, Topeka, Kansas 66636-0001. Mr. Goldman's
address is Connecticut Business Center, 6 Landmark Square #471, Stamford, CT
06901-2707.



                                                                                   
-------------------------------- ------------------------------- -------------------------- --------------------------------
NAME                             POSITIONS/OFFICES HELD WITH     POSITIONS/OFFICES HELD     POSITIONS/OFFICES HELD WITH SGI
                                 SBL FUND                        WITH THE INVESTMENT
                                                                 MANAGER
-------------------------------- ------------------------------- -------------------------- --------------------------------
Richard M. Goldman               President and Chairman of the   President and Managing     President and Manager
                                 Board                           Member Representative
-------------------------------- ------------------------------- -------------------------- --------------------------------
Brenda M. Harwood                Chief Compliance Officer and    Chief Compliance Officer   Chief Compliance Officer
                                 Treasurer
-------------------------------- ------------------------------- -------------------------- --------------------------------
Cindy Shields                    Vice President                  Vice President
-------------------------------- ------------------------------- -------------------------- --------------------------------
Chris Phalen                     Vice President                  Vice President
-------------------------------- ------------------------------- -------------------------- --------------------------------
Amy J. Lee                       Secretary                       Secretary                  Secretary
-------------------------------- ------------------------------- -------------------------- --------------------------------
Chris Swickard                   Assistant Secretary             Assistant Secretary
-------------------------------- ------------------------------- -------------------------- --------------------------------



                                      B-2




                                   EXHIBIT B-3

 OTHER REGISTERED INVESTMENT COMPANIES WITH SIMILAR INVESTMENT OBJECTIVES AS THE
      SERIES, FOR WHICH THE INVESTMENT MANAGER ACTS AS INVESTMENT MANAGER,
                             ADVISER OR SUB-ADVISER


The following table provides information regarding SEC registered US mutual
funds for which the Investment Manager provides investment management, advisory
or sub-advisory services and that have an investment objective that is similar
to that of the Series.



                                                                            
-------------------------- ------------------------------ -------------------------- -----------------------------------------------
FUND                       CONTRACTUAL FEE                NET ASSETS AS OF APRIL     WAIVER/EXPENSE LIMITATION
                                                          30, 2008
-------------------------- ------------------------------ -------------------------- -----------------------------------------------
Security Equity Fund       Alpha Opportunity Fund's       $39,200,772                The Investment Manager has contractually
Security Alpha Opportunity investment management fee is                              agreed through January 31, 2010 to waive fees
Fund                       identical to that payable to                              and/or reimburse Fund expenses to the extent
                           the Investment Manager                                    necessary to limit the ordinary operating
                           pursuant to the Current                                   expenses (including distribution (12b-1)
                           Management Agreement*                                     fees, but exclusive of brokerage costs,
                                                                                     dividends on securities sold short, acquired
                                                                                     fund fees and expenses, interest, taxes,
                                                                                     litigation, indemnification, and extraordinary
                                                                                     expenses) ("Operating Expenses") of the Fund
                                                                                     to 1.95% for Class A shares and 2.70% for
                                                                                     Class B and C shares. The Investment Manager
                                                                                     is entitled to reimbursement by the Fund
                                                                                     of fees waived or expenses reimbursed
                                                                                     during any of the previous 36 months beginning
                                                                                     on the date of the expense limitation
                                                                                     agreement if on any day the estimated
                                                                                     annualized Operating Expenses are less
                                                                                     than the indicated percentages.
-------------------------- ------------------------------ -------------------------- -----------------------------------------------



*It is proposed in a separate proxy statement that Alpha Opportunity Fund adopt
a new contractual management fee identical to that proposed for the Series under
the Amended Advisory Agreement.

                                      B-3






                                    EXHIBIT C

             PRINCIPAL EXECUTIVE OFFICER AND MANAGING MEMBER OF SGI




                                                                                      
------------------------------------------ -------------------------------------------- --------------------------------------------
             NAME AND ADDRESS                     POSITIONS/OFFICES HELD WITH SGI              PRINCIPAL OCCUPATION/POSITION
------------------------------------------ -------------------------------------------- --------------------------------------------
Richard M. Goldman                         President and Manager                        Senior Vice President, Security Benefit
                                                                                        Corporation; Director, Security
                                                                                        Distributors, Inc.; Director, First
Connecticut Business Center, 6 Landmark                                                 Security Benefit Life Insurance and
Square #471                                                                             Annuity Company of New York; President and
Stamford, CT  06901-2707                                                                Manager, Security Global Investors, LLC;
                                                                                        President and Chairman of the Board,
                                                                                        Security Funds
------------------------------------------ -------------------------------------------- --------------------------------------------
Kris A. Robbins                            Manager                                      Chairman of the Board and Chief Executive
                                                                                        Officer, Security Benefit Corporation;
                                                                                        Chairman, President, and Chief Executive
One Security Benefit Place                                                              Officer, Security Benefit Life Insurance
Topeka, Kansas 66636-0001                                                               Company; Chairperson and Chief Executive
                                                                                        Officer, First Security Benefit Life
                                                                                        Insurance and Annuity Company of New York.
------------------------------------------ -------------------------------------------- --------------------------------------------



No Officer or Director of the Fund owns securities or has any other material
indirect interest in SGI.

                                      C-1






                                    EXHIBIT D

    FORM OF SGI SUB-ADVISORY AGREEMENT BETWEEN THE INVESTMENT MANAGER AND SGI


THIS AGREEMENT is made and entered into as of the __ day of ___________, 2008
between Security Investors, LLC (the "Adviser"), a Kansas limited liability
company, registered under the Investment Advisers Act of 1940, as amended (the
"Investment Advisers Act"), and Security Global Investors, LLC (the
"Subadviser"), a Kansas limited liability company registered under the
Investment Advisers Act.

                                   WITNESSETH:

     WHEREAS, SBL Fund and Security Equity Fund, Kansas corporations, are each
registered with the Securities and Exchange Commission (the "Commission") as
open-end management investment companies under the Investment Company Act of
1940, as amended (the "Investment Company Act");

     WHEREAS, SBL Fund is authorized to issue shares of Series Z ("Series Z"), a
separate series of SBL Fund and Security Equity Fund is authorized to issue
shares of the Alpha Opportunity Series ("Alpha Opportunity Series"), a separate
series of Security Equity Fund (Series Z, and the Alpha Opportunity Series are
referred to herein individually as a "Fund" and collectively as the "Funds");

     WHEREAS, each of the Funds has, pursuant to an Advisory Agreement with the
Adviser (the "Advisory Agreement"), retained the Adviser to act as investment
adviser for and to manage its assets;

     WHEREAS, the Advisory Agreements permit the Adviser to delegate certain of
its duties under the Advisory Agreement to other investment advisers, subject to
the requirements of the Investment Company Act; and

     WHEREAS, the Adviser desires to retain the Subadviser as subadviser to act
as investment adviser for and to manage a portion of each Funds' respective
Investments (as defined below) and the Subadviser desires to render such
services.

     NOW, THEREFORE, the Adviser and Subadviser do mutually agree and promise as
follows:

     1. Appointment as Subadviser. The Adviser hereby retains the Subadviser to
act as investment adviser for and to manage the portion of the assets of the
Funds as determined by the Adviser from time to time, in each case subject to
the supervision of the Adviser and the Board of Directors of such Fund and
subject to the terms of this Agreement. The Subadviser hereby accepts such
employment. In such capacity, the Subadviser shall be responsible for the
portion of each Fund's Investments (as defined below) allocated to it by the
Adviser.

     2. Duties of Subadviser.

          (a) Investments. The Subadviser is hereby authorized and directed and
     hereby agrees, subject to the stated investment policies and restrictions
     of each Fund as set forth in such Fund's prospectus and statement of
     additional information as currently in effect and as supplemented or
     amended from time to time (collectively referred to hereinafter as the
     "Prospectus") and subject to the directions of the Adviser and the Fund's
     Board of Directors to purchase, hold and sell investments for the portion
     of the assets of the Funds allocated to the Subadviser by the Adviser
     (hereinafter "Investments") and to monitor on a continuous basis the
     performance of such Investments. The Subadviser shall give the Funds the
     benefit of its best efforts in rendering its services as Subadviser. The
     Subadviser may contract with or consult with such banks, other securities
     firms, brokers or other parties, without additional expense to the Funds,
     as it may deem appropriate regarding investment advice, research and
     statistical data, clerical assistance or otherwise.

                                       D-1



     The Subadviser acknowledges that each Fund may engage in certain
     transactions in reliance on exemptions under Rule 10f-3, Rule 12d3-1, Rule
     17a-10 and Rule 17e-1 under the Investment Company Act. Accordingly, the
     Subadviser hereby agrees that it will not consult with any other subadviser
     of a Fund, or an affiliated person of such other subadviser, concerning
     transactions for such Fund in securities or other fund assets. The
     Subadviser shall be limited to providing investment advice with respect to
     only the discrete portion of each Fund's portfolio as may be determined
     from time-to-time by the Adviser, and shall not consult with any other
     subadviser as to any other portion of such Fund's portfolio concerning
     transactions for the Fund in securities or other assets.

          (b) Brokerage. The Subadviser is authorized, subject to the
     supervision of the Adviser and the respective Fund's Board to establish and
     maintain accounts on behalf of each Fund with, and place orders for the
     purchase and sale of each Fund's Investments with or through, such persons,
     brokers or dealers as Subadviser may select which may include, to the
     extent permitted by the Adviser and the respective Fund's Board, brokers or
     dealers affiliated with the Subadviser or Adviser, and negotiate
     commissions to be paid on such transactions. The Subadviser agrees that in
     placing such orders for a Fund it shall attempt to obtain best execution,
     provided that, the Subadviser may, on behalf of such Fund, pay brokerage
     commissions to a broker which provides brokerage and research services to
     the Subadviser in excess of the amount another broker would have charged
     for effecting the transaction, provided (i) the Subadviser determines in
     good faith that the amount is reasonable in relation to the value of the
     brokerage and research services provided by the executing broker in terms
     of the particular transaction or in terms of the Subadviser's overall
     responsibilities with respect to such Fund and the accounts as to which the
     Subadviser exercises investment discretion, (ii) such payment is made in
     compliance with Section 28(e) of the Securities Exchange Act of 1934, as
     amended, and any other applicable laws and regulations, and (iii) in the
     opinion of the Subadviser, the total commissions paid by such Fund will be
     reasonable in relation to the benefits to the Fund over the long term. In
     reaching such determination, the Subadviser will not be required to place
     or attempt to place a specific dollar value on the brokerage and/or
     research services provided or being provided by such broker. It is
     recognized that the services provided by such brokers may be useful to the
     Subadviser in connection with the Subadviser's services to other clients.
     On occasions when the Subadviser deems the purchase or sale of a security
     to be in the best interests of the Fund as well as other clients of the
     Subadviser, the Subadviser, to the extent permitted by applicable laws and
     regulations, may, but shall be under no obligation to, aggregate the
     securities to be sold or purchased in order to obtain the most favorable
     price or lower brokerage commissions and efficient execution. In such
     event, allocation of securities so sold or purchased, as well as the
     expenses incurred in the transaction, will be made by the Subadviser in the
     manner the Subadviser considers to be the most equitable and consistent
     with its fiduciary obligations to the Fund or Funds involved and to such
     other clients. The Subadviser will report on such allocations at the
     request of the Adviser, or the respective Fund's Board, providing such
     information as the number of aggregated trades to which a Fund was a party,
     the broker(s) to whom such trades were directed and the basis of the
     allocation for the aggregated trades.

          (c) Securities Transactions. The Subadviser and any affiliated person
     of the Subadviser will not purchase securities or other instruments from or
     sell securities or other instruments to a Fund ("Principal Transactions");
     provided, however, the Subadviser or an affiliated person of the Subadviser
     may enter into a Principal Transaction with a Fund if (i) the transaction
     is permissible under applicable laws and regulations, including, without
     limitation, the Investment Company Act and the Investment Advisers Act and
     the rules and regulations promulgated thereunder, and (ii) the transaction
     or category of transactions receives the express written approval of the
     Adviser.

          The Subadviser agrees to observe and comply with Rule 17j-1 under the
     Investment Company Act and its Code of Ethics, as the same may be amended
     from time to time. The Subadviser agrees to provide the Adviser and the
     Funds with a copy of such Code of Ethics.

          (d) Books and Records. The Subadviser will maintain all books and
     records required to be maintained pursuant to the Investment Company Act
     and the rules and regulations promulgated thereunder solely with respect to
     transactions made by it on behalf of the Funds including, without
     limitation, the books and records required by Subsections (b)(1), (5), (6),
     (7), (9), (10) and (11) and Subsection (f) of Rule 31a-1 under the
     Investment Company Act and shall timely furnish to the Adviser all
     information relating to the Subadviser's services hereunder needed by the
     Adviser to keep such other books and records of the Funds required by Rule
     31a-1 under the Investment Company Act. The Subadviser will also preserve
     all such books and records for the periods

                                       D-2



     prescribed in part (e) of Rule 31a-2 under the Investment Company Act, and
     agrees that such books and records shall remain the sole property of the
     respective Fund and shall be immediately surrendered to the appropriate
     Fund upon request. The Subadviser further agrees that all books and records
     maintained hereunder shall be made available to the respective Fund or the
     Adviser at any time upon reasonable request and notice, including telecopy,
     during any business day.

          (e) Information Concerning Investments and Subadviser. From time to
     time as the Adviser or a Fund may request, the Subadviser will furnish the
     requesting party reports on portfolio transactions and reports on
     Investments held in the portfolios, all in such detail as the Adviser or
     the applicable Fund may reasonably request. The Subadviser will make
     available its officers and employees to meet with the Board of Directors of
     a Fund at the Fund's principal place of business on due notice to review
     the Investments of the Fund.

          The Subadviser will also provide such information as is customarily
     provided by a subadviser and may be required for each Fund or the Adviser
     to comply with their respective obligations under applicable laws,
     including, without limitation, the Internal Revenue Code of 1986, as
     amended (the "Code"), the Investment Company Act, the Investment Advisers
     Act, the Securities Act of 1933, as amended (the "Securities Act") and any
     state securities laws, and any rule or regulation thereunder.

          During the term of this Agreement, the Adviser agrees to furnish the
     Subadviser at its principal office all registration statements, proxy
     statements, reports to stockholders, sales literature or other materials
     prepared for distribution to stockholders of each Fund, or the public that
     refer to the Subadviser for Subadviser's review and approval. The
     Subadviser shall be deemed to have approved all such materials unless the
     Subadviser reasonably objects by giving notice to the Adviser in writing
     within five business days (or such other period as may be mutually agreed)
     after receipt thereof. The Subadviser's right to object to such materials
     is limited to the portions of such materials that expressly relate to the
     Subadviser, its services and its clients. The Adviser agrees to use its
     best efforts to ensure that materials prepared by its employees or agents
     or its affiliates that refer to the Subadviser or its clients in any way
     are consistent with those materials previously approved by the Subadviser
     as referenced in this paragraph. Sales literature may be furnished to the
     Sub-Adviser by first class or overnight mail, facsimile transmission
     equipment or hand delivery.

          (f) Custody Arrangements. The Subadviser shall provide each Fund's
     custodian, on each business day with information relating to all
     transactions concerning the Fund's assets.

          (g) Compliance with Applicable Laws and Governing Documents. In all
     matters relating to the performance of this Agreement, the Subadviser and
     its directors, officers, partners, employees and interested persons shall
     act in conformity with each Fund's Articles of Incorporation, By-Laws, and
     currently effective registration statement and with the written
     instructions and directions of each Fund's Board and the Adviser, after
     receipt of such documents, from the relevant Fund, and shall comply with
     the requirements of the Investment Company Act, the Investment Advisers
     Act, the Commodity Exchange Act (the "CEA"), the rules thereunder, and all
     other applicable federal and state laws and regulations.

          In carrying out its obligations under this Agreement, the Subadviser
     shall ensure that the portion of the Funds allocated to it complies with
     all applicable statutes and regulations necessary to qualify such portion
     of each Fund as a Regulated Investment Company under Subchapter M of the
     Code (or any successor provision), and shall notify the Adviser immediately
     upon having a reasonable basis for believing that such portion of a Fund
     has ceased to so qualify or that it might not so qualify in the future.

          In carrying out its obligations under this Agreement, the Subadviser
     shall invest the portion of the assets of Series Z allocated to it by the
     Adviser in such a manner as to ensure that such portion complies with the
     diversification provisions of Section 817(h) of the Code (or any successor
     provision) and the regulations issued thereunder relating to the
     diversification requirements for variable insurance contracts and any
     prospective amendments or other enacted modifications to Section 817 or
     regulations thereunder. Subadviser shall notify the Adviser immediately
     upon having a reasonable basis for believing that the portion of Series Z
     allocated to the Subadvser has ceased to comply and will take all
     reasonable steps to adequately diversify the assets of Series Z allocated
     to, so as to achieve compliance within the grace period afforded by
     Regulation 1.817-5.

                                       D-3



          (h) Information Concerning the Funds. The Adviser has furnished the
     Subadviser with copies of each of the following documents and will furnish
     the Subadviser at its principal office all future amendments and
     supplements to such documents, if any, as soon as practicable after such
     documents become available: (i) the Articles of Incorporation of each Fund,
     (ii) the By-Laws of each Fund, (iii) each Fund's registration statement
     under the Investment Company Act and the Securities Act of 1933, as
     amended, as filed with the Commission, and (iv) any written instructions of
     the respective Fund's Board and the Adviser.

          (i) Voting of Proxies. The Subadviser shall direct the custodian as to
     how to vote such proxies as may be necessary or advisable in connection
     with any matters submitted to a vote of shareholders of Investments held by
     a Fund.

     3. Independent Contractor. In the performance of its duties hereunder, the
Subadviser is and shall be an independent contractor and unless otherwise
expressly provided herein or otherwise authorized in writing, shall have no
authority to act for or represent the Funds or the Adviser in any way or
otherwise be deemed an agent of the Funds or the Adviser.

     4. Compensation. The Adviser shall pay to the Subadviser, for the services
rendered hereunder, the fee set forth in Exhibit A to this Agreement.

     5. Expenses. The Subadviser shall bear all expenses incurred by it in
connection with its services under this Agreement and will, from time to time,
at its sole expense employ or associate itself with such persons as it believes
to be particularly fitted to assist it in the execution of its duties hereunder.
However, the Subadviser shall not assign or delegate any of its investment
management duties under this Agreement without the approval of the Adviser and
the appropriate Fund's Board.

     6. Representations and Warranties of Subadviser. The Subadviser represents
and warrants to the Adviser and the Funds as follows:

          (a) The Subadviser is registered as an investment adviser under the
     Investment Advisers Act;

          (b) The Subadviser will immediately notify the Adviser of the
     occurrence of any event that would disqualify the Subadviser from serving
     as an investment adviser of an investment company pursuant to Section 9(a)
     of the Investment Company Act;

          (c) The Subadviser has filed a notice of exemption pursuant to Rule
     4.14 under the CEA with the Commodity Futures Trading Commission (the
     "CFTC") and the National Futures Association;

          (d) The Subadviser is fully authorized under all applicable law to
     serve as Subadviser to the Funds and to perform the services described
     under this Agreement;

          (e) The Subadviser is a limited liability company duly organized and
     validly existing under the laws of the state of Kansas with the power to
     own and possess its assets and carry on its business as it is now being
     conducted;

          (f) The execution, delivery and performance by the Subadviser of this
     Agreement are within the Subadviser's powers and have been duly authorized
     by all necessary action on the part of its members, and no action by or in
     respect of, or filing with, any governmental body, agency or official is
     required on the part of the Subadviser for the execution, delivery and
     performance by the Subadviser of this Agreement, and the execution,
     delivery and performance by the Subadviser of this Agreement do not
     contravene or constitute a default under (i) any provision of applicable
     law, rule or regulation, (ii) the Subadviser's governing instruments, or
     (iii) any agreement, judgment, injunction, order, decree or other
     instrument binding upon the Subadviser;

          (g) This Agreement is a valid and binding agreement of the Subadviser;

                                       D-4



          (h) The Form ADV of the Subadviser previously provided to the Adviser
     is a true and complete copy of the form filed with the Commission and the
     information contained therein is accurate and complete in all material
     respects as of its filing date, and does not omit to state any material
     fact necessary in order to make the statements made, in light of the
     circumstances under which they were made, not misleading;

          (i) The Subadviser has adopted compliance policies and procedures
     reasonably designed to prevent violations of the Investment Advisers Act
     and the rules thereunder, has provided the Adviser with a copy of such
     compliance policies and procedures (and will provide them with any
     amendments thereto), and agrees to assist the Funds in complying with the
     Funds' compliance program adopted pursuant to Rule 38a-1 under the
     Investment Company Act, to the extent applicable. The Subadviser
     understands that the Boards of Directors of the Funds are required to
     approve the Subadviser's compliance policies and procedures and
     acknowledges that this Agreement is conditioned upon such Board approval;
     and

          (j) The Subadviser shall not divert any Fund's portfolio securities
     transactions to a broker or dealer in consideration of such broker or
     dealer's promotion or sales of shares of the Fund, any other series of
     Security Equity Fund or SBL Fund, or any other registered investment
     company.

     7. Non-Exclusivity. The services of the Subadviser with respect to the
Funds are not deemed to be exclusive, and the Subadviser and its officers shall
be free to render investment advisory and administrative or other services to
others (including other investment companies) and to engage in other activities
so long as its duties hereunder are not impaired thereby.

     8. Representations and Warranties of Adviser. The Adviser represents and
warrants to the Subadviser as follows:

          (a) The Adviser is registered as an investment adviser under the
     Investment Advisers Act;

          (b) The Adviser has filed a notice of exemption pursuant to Rule 4.14
     under the CEA with the Commodity Futures Trading Commission (the "CFTC")
     and the National Futures Association;

          (c) The Adviser is a limited liability company duly organized and
     validly existing under the laws of the State of Kansas with the power to
     own and possess its assets and carry on its business as it is now being
     conducted;

          (d) The execution, delivery and performance by the Adviser of this
     Agreement and the Advisory Agreement are within the Adviser's powers and
     have been duly authorized by all necessary action on the part of its
     members, and no action by or in respect of, or filing with, any
     governmental body, agency or official is required on the part of the
     Adviser for the execution, delivery and performance by the Adviser of this
     Agreement, and the execution, delivery and performance by the Adviser of
     this Agreement do not contravene or constitute a default under (i) any
     provision of applicable law, rule or regulation, (ii) the Adviser's
     governing instruments, or (iii) any agreement, judgment, injunction, order,
     decree or other instrument binding upon the Adviser;

          (e) This Agreement and the Advisory Agreement are valid and binding
     agreements of the Adviser;

          (f) The Form ADV of the Adviser previously provided to the Subadviser
     is a true and complete copy of the form filed with the Commission and the
     information contained therein is accurate and complete in all material
     respects as of its filing date and does not omit to state any material fact
     necessary in order to make the statements made, in light of the
     circumstances under which they were made, not misleading;

          (g) The Adviser acknowledges that it received a copy of the
     Subadviser's Form ADV at least 48 hours prior to the execution of this
     Agreement.

     9. Survival of Representations and Warranties; Duty to Update Information.
All representations and warranties made by the Subadviser and the Adviser
pursuant to Sections 6 and 8 hereof shall survive for the duration of this

                                       D-5



Agreement and the parties hereto shall promptly notify each other in writing
upon becoming aware that any of the foregoing representations and warranties are
no longer true.

     10. Liability and Indemnification.

          (a) Liability. In the absence of willful misfeasance, bad faith or
     gross negligence on the part of the Subadviser or a breach of its duties
     hereunder, the Subadviser shall not be subject to any liability to the
     Adviser, to either Fund, or any of either Fund's shareholders, and, in the
     absence of willful misfeasance, bad faith or gross negligence on the part
     of the Adviser or a breach of its duties hereunder, the Adviser shall not
     be subject to any liability to the Subadviser, for any act or omission in
     the case of, or connected with, rendering services hereunder or for any
     losses that may be sustained in the purchase, holding or sale of
     Investments; provided, however, that nothing herein shall relieve the
     Adviser and the Subadviser from any of their respective obligations under
     applicable law, including, without limitation, the federal and state
     securities laws and the CEA

          (b) Indemnification. The Subadviser shall indemnify the Adviser and
     the Funds, and their respective officers and directors, for any liability
     and expenses, including attorneys' fees, which may be sustained by the
     Adviser, or the Funds, as a result of the Subadviser's willful misfeasance,
     bad faith, or gross negligence, breach of its duties hereunder or violation
     of applicable law, including, without limitation, the federal and state
     securities laws or the CEA. The Adviser shall indemnify the Subadviser and
     its officers and partners, for any liability and expenses, including
     attorneys' fees, which may be sustained as a result of the Adviser's, or
     the Funds' willful misfeasance, bad faith, or gross negligence, breach of
     its duties hereunder or violation of applicable law, including, without
     limitation, the federal and state securities laws or the CEA.

     11.  Duration and Termination.

          (a) Duration. This Agreement shall become effective upon the date
     first above written, provided that this Agreement shall not take effect
     with respect to a Fund unless it has first been approved by a vote of a
     majority of those directors of SBL Fund and Security Equity Fund, as
     applicable, 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. This Agreement shall continue in effect for a
     period of two years from the date hereof, subject thereafter to being
     continued in force and effect from year to year with respect to each Fund
     if specifically approved each year by the Board of Directors of the
     applicable Fund or by the vote of a majority of the Fund's outstanding
     voting securities. In addition to the foregoing, each renewal of this
     Agreement with respect to each Fund must be approved by the vote of a
     majority of the applicable Fund's directors 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. Prior to voting
     on the renewal of this Agreement, the Board of Directors of the applicable
     Fund may request and evaluate, and the Subadviser shall furnish, such
     information as may reasonably be necessary to enable the Fund's Board of
     Directors to evaluate the terms of this Agreement.

          (b) Termination. Notwithstanding whatever may be provided herein to
     the contrary, this Agreement may be terminated at any time, without payment
     of any penalty:

               (i) By vote of a majority of the Board of Directors of the
          applicable Fund, or by vote of a majority of the outstanding voting
          securities of the applicable Fund, or by the Adviser, in each case,
          upon sixty (60) days' written notice to the Subadviser;

               (ii) By the Adviser upon breach by the Subadviser of any
          representation or warranty contained in Section 6 hereof, which shall
          not have been cured within twenty (20) days of the Subadviser's
          receipt of written notice of such breach;

               (iii) By the Adviser immediately upon written notice to the
          Subadviser if the Subadviser becomes unable to discharge its duties
          and obligations under this Agreement; or

               (iv) By the Subadviser upon 120 days written notice to the
          Adviser and the applicable Fund.

                                       D-6



     This Agreement shall not be assigned (as such term is defined in the
Investment Company Act) without the prior written consent of the parties hereto.
This Agreement shall terminate automatically in the event of its assignment
without such consent or upon the termination of the Advisory Agreement.

     12. Duties of the Adviser. The Adviser shall continue to have
responsibility for all services to be provided to the Funds pursuant to the
Advisory Agreement and shall oversee and review the Subadviser's performance of
its duties under this Agreement.

     13. Amendment. This Agreement may be amended by mutual consent of the
parties, provided that the terms of each such amendment with respect to a Fund
shall be approved by the Board of Directors of the applicable Fund or by a vote
of a majority of the outstanding voting securities of the applicable Fund.

     14. Notice. Any notice that is required to be given by the parties to each
other (or to the Fund) under the terms of this Agreement shall be in writing,
delivered, or mailed postpaid to the other party, or transmitted by facsimile
with acknowledgment of receipt, to the parties at the following addresses or
facsimile numbers, which may from time to time be changed by the parties by
notice to the other party:

            (a) If to the Subadviser:

                Security Global Investors, LLC
                2 Embarcadero Center, Suite 2350
                San Francisco, CA 94111
                Attention:  John Boich, Vice President and Head of Global Equity
                Facsimile:  (415) 274-7702

                With a copy to:

                Security Benefit Corporation
                One Security Benefit Place
                Topeka, KS 66636
                Attention:  General Counsel
                Facsimile:   (785) 438-3080

            (b) If to the Adviser:

                Security Investors, LLC
                One Security Benefit Place
                Topeka, KS  66636-0001
                Attention: Richard Goldman, President
                Facsimile: (785) 438-3080


            (d) If to SBL Fund:

                SBL Fund
                One Security Benefit Place
                Topeka, Kansas 66636-0001
                Attention:  Amy J. Lee, Secretary
                Facsimile:  (785) 438-3080

                                       D-7



            (d) If to Security Equity Fund:

                Security Equity Fund
                One Security Benefit Place
                Topeka, Kansas 66636-0001
                Attention:  Amy J. Lee, Secretary
                Facsimile:  (785) 438-3080

     15. Governing Law; Jurisdiction. Except as indicated in Section 19(b) of
this Agreement, this Agreement shall be governed by and construed in accordance
with the laws of the State of Kansas, without regard to its conflicts of law
provisions.

     16. Counterparts. This Agreement may be executed in one or more
counterparts, all of which shall together constitute one and the same
instrument.

     17. Captions. The captions herein are included for convenience of reference
only and shall be ignored in the construction or interpretation hereof.

     18. Severability. If any provision of this Agreement shall be held or made
invalid by a court decision or applicable law, the remainder of the Agreement
shall not be affected adversely and shall remain in full force and effect.

     19. Certain Definitions.

          (a) "Business day." As used herein, business day means any customary
     business day in the United States on which the New York Stock Exchange is
     open.

          (b) Miscellaneous. As used herein, "investment company," "affiliated
     person," "interested person," "assignment," "broker," "dealer" and
     "affirmative vote of the majority of the Fund's outstanding voting
     securities" shall all have such meaning as such terms have in the
     Investment Company Act. The term "investment adviser" shall have such
     meaning as such term has in the Investment Advisers Act and the Investment
     Company Act, and in the event of a conflict between such Acts, the most
     expansive definition shall control. In addition, where the effect of a
     requirement of the Investment Company Act reflected in any provision of
     this Agreement is relaxed by a rule, regulation or order of the Commission,
     whether of special or general application, such provision shall be deemed
     to incorporate the effect of such rule, regulation or order.

                                       D-8



     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
day and year first written above.

Security Investors, LLC

                         By:
                                  ----------------------------------------------
                         Name:    Richard M. Goldman
                         Title:   President

                         Attest:
                                  ----------------------------------------------
                         Name:    Amy J. Lee
                         Title:   Secretary

                         Security Global Investors, LLC

                         By:
                                  ----------------------------------------------
                         Name:    Richard M. Goldman
                         Title:   President

                         Attest:
                                  ----------------------------------------------
                         Name:    Amy J. Lee
                         Title:   Secretary

                                      D-9




                            EXHIBIT A - COMPENSATION


For all services rendered by the Subadviser hereunder, Adviser shall pay to
Subadviser a fee (the "Subadvisory Fee") at an annual rate of 1.45% of that
portion of each Fund's net assets that the Adviser has allocated to Subadviser
for management ("Subadviser Assets").

For purposes of calculating the compensation to be paid hereunder, the
Subadviser Assets 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 each Fund's shares as described in the
then current prospectus for the applicable Fund.

The Subadvisory Fee shall be accrued for each calendar day the Subadviser
renders subadvisory services hereunder and the sum of the daily fee accruals
shall be paid monthly to the Subadviser as soon as practicable following the
last day of each month, by wire transfer if so requested by the Subadviser, but
no later than ten (10) business days thereafter. If this Agreement shall be
effective for only a portion of a year, then the Subadviser's fee for said year
shall be prorated for such portion.

                                      D-10



                                    EXHIBIT E
     BENEFICIAL OWNERS OF 5% OR MORE OF THE OUTSTANDING SHARES OF THE SERIES

As of the Record Date, the following persons are known to have owned
beneficially 5% or more of the outstanding shares of the Series:



                                                                                                 
----------------------------------- --------------------------------- ------------------------------ -------------------------------
          TITLE OF CLASS             NAME AND ADDRESS OF BENEFICIAL        AMOUNT AND NATURE OF              PERCENT OF CLASS
                                                 OWNER                     BENEFICIAL OWNERSHIP
----------------------------------- --------------------------------- ------------------------------ -------------------------------
SBL Fund SeriesZ (Alpha
Opportunity Series)
----------------------------------- --------------------------------- ------------------------------ -------------------------------



* As of the Record Date, the Directors and officers, as a group, owned less than
1.00% of the outstanding shares of the Series.

E-1




                                    SBL FUND
                           ONE SECURITY BENEFIT PLACE
                            TOPEKA, KANSAS 66636-0001
                                 1-800-888-2461

                       SERIES Z (ALPHA OPPORTUNITY SERIES)



          PROXY FOR A SPECIAL MEETING OF SHAREHOLDERS ON AUGUST 5, 2008
     THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS OF SBL FUND

The undersigned hereby appoint(s) Amy J. Lee, Donald A. Chubb, Jr. and Brenda M.
Harwood, or any one of them, proxies, each of them with full power of
substitution, to vote and act with respect to all shares of Series Z (Alpha
Opportunity Series) (the "Series") which the undersigned is entitled to vote at
the special meeting of shareholders of the Series to be held at the executive
offices of SBL Fund at the above address on August 5, 2008 at 1:00 p.m. Central
Time, and at any adjournment(s) or postponements thereof.


THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS. This proxy card
will be voted as instructed. IF NO SPECIFICATION IS MADE, THE PROXY CARD WILL BE
VOTED "FOR" PROPOSALS 1 AND 2. THE PROXIES ARE AUTHORIZED, IN THEIR DISCRETION,
TO VOTE UPON SUCH MATTERS AS MAY COME BEFORE THE SPECIAL MEETING OR ANY
ADJOURNMENTS.

                            V FOLD AND DETACH HERE V
................................................................................

                                    SBL FUND
                 SERIES Z (ALPHA OPPORTUNITY SERIES) ("SERIES")
            SPECIAL MEETING OF SHAREHOLDERS TO BE HELD AUGUST 5, 2008

       THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR THE FOLLOWING PROPOSAL

Please vote, date and sign this proxy card and return it promptly in the
enclosed envelope. Please indicate your vote by an "x" in the appropriate boxes
below:

     1.   To approve an amended investment advisory agreement between SBL Fund
          and Security Investors, LLC, on behalf of the Series; and


          FOR                    AGAINST                ABSTAIN

          | |                      | |                    | |

     2.   To approve a new investment sub-advisory agreement between Security
          Investors, LLC and Security Global Investors, LLC pursuant to which
          Security Global Investors, LLC will be appointed as an additional
          investment sub-adviser to the Series;


          FOR                    AGAINST                ABSTAIN

          | |                      | |                    | |


                                                    PLEASE VOTE BY       |X|
                                                    CHECKING THE
                                                    APPROPRIATE BOX
                                                    AS IN THIS EXAMPLE


Signature: ______________________      Signature (if held jointly): ____________

Date: ___________________________      Date: ___________________________________

This proxy must be signed exactly as your name(s) appears hereon. If as an
attorney, executor, guardian or in some representative capacity or as an officer
of a corporation, please add titles as such. Joint owners must each sign. By
signing this proxy card, you



acknowledge that you have received the proxy statement that the proxy card
accompanies.


                            PROXY VOTING INSTRUCTIONS

Your mailed proxy statement provides details on important issues relating to the
Series. THE BOARD OF DIRECTORS OF SBL FUND RECOMMENDS THAT YOU VOTE "FOR" THE
PROPOSAL.

To make voting faster and more convenient for you, we are offering a variety of
ways to vote your proxy. You may vote using the Internet or by telephone instead
of completing and mailing the enclosed proxy card. The Internet and telephone
are generally available 24 hours a day and your vote will be confirmed and
posted immediately. Use whichever method is most convenient for you! If you
choose to vote via the Internet or by phone, you should not mail your proxy
card.

WAYS TO VOTE YOUR SHARES

Your vote is important no matter how many shares you own. Voting your shares
early will avoid costly follow-up mail and telephone solicitation.


Online                    1.   Click on www.proxyonline.com.
                          2.   Enter the 12 digit control number.
                          3.   Follow the instructions on the Web site.
                          4.   Once you have voted, you do not need to mail your
                               proxy card.

By Phone                  1.   Call toll-free 1-866-628-9070.
                          2.   Enter the 12 digit control number.
                          3.   Follow the recorded instructions.
                          4.   Once you have voted, you do not need to mail your
                               proxy card

By Mail                   Complete and sign your proxy card and mail it in
                          the postage-paid envelope received with your
                          shareholder mailing. To ensure your vote is validated
                          properly, please sign your proxy card as described in
                          the "Instructions for Signing Proxy Cards" section of
                          your proxy materials.

In Person                 The Shareholder Meeting will take place August
                          5, 2008, at 1:00 p.m., Central time, at the office of
                          SBL Fund, located at One Security Benefit Place,
                          Topeka, Kansas 66636.


                            V FOLD AND DETACH HERE V
--------------------------------------------------------------------------------


                                   Questions?

We urge you to spend time reviewing your proxy statement and the proposal
included in the package. Should you have any questions, we encourage you to
call1-800-361-2782 toll-free Monday through Friday from 9:30 a.m. to 10:00 p.m.
Eastern time. We have retained The Altman Group to assist insurance contract
owners in the voting process. If we have not received your proxy card or vote as
the date of the special meeting approaches, representatives from The Altman
Group may call you to remind you to exercise your vote.


                 YOUR PROXY VOTE IS IMPORTANT! PLEASE VOTE TODAY