Exhibit (9)(b)
May 15, 1994
Xxxxx X. Xxxxxx, Controller
Penn Series Funds, Inc.
000 Xxxxxxx Xxxx
Horsham, PA 19044
Re: Accounting Services Fees
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Dear Xx. Xxxxxx:
This letter constitutes our agreement with respect to compensation to
be paid to PFPC Inc. ("PFPC") under the terns of an Accounting Services
Agreement dated May 1, 1989 between Penn Series Funds, Inc. (you or "Penn
Series") and PFPC. Pursuant to paragraph 11 of that Agreement, and in
consideration of the services to be provided to Penn Series, Penn Series, which
consists of 7 portfolios, will pay PFPC an annual accounting fee, to be
calculated daily and paid monthly. You will also reimburse PFPC for its
out-of-pocket expenses incurred on behalf of Penn Series, including, but not
limited to: postage, telephone, charges, storage, Federal express, and outside
pricing service charges.
The annual accounting fee for each domestic portfolio shall be an asset
based fee of .075% of the first $100 million of average net assets; .050% of the
next $200 million of average net assets; .030% of the next $300 million of
average net assets; and .020% of the average net assets in excess of $600
million; exclusive of out-of-pocket expenses. The annual accounting fee for each
international portfolio shall be an asset based fee of .085% of the first $100
of average net assets; .060% of the next $300 million of average net assets;
.040% of the next $200 million of average net assets; and .030% of the average
net assets in excess of $600 million; exclusive of out-of-pocket expense.
The minimum annual fee shall be $27,500 for each domestic nonmoney
market portfolio; $0 for each money market portfolio; and $48,000 for each
international portfolio.
For each additional portfolio, PFPC will waive its minimum fee for the
first two months of each portfolios operations; thereafter, PFPC's minimum fee
shall be charged in increments of 10% per month. Thus, each portfolio shall pay
PFPC 10% of the minimum fee during the third month of its operations, 20% during
the fourth month, 30% during the fifth month etc. During the twelfth month and
thereafter, each portfolio shall pay 100% of the minimum fee.
The fee for the period from the day of the year this agreement is
entered into until the end of that year shall be pro-rated according to the
proportion which such period bears to the full annual period.
If the foregoing accurately sets forth our agreement, and you intend to
be legally bound thereby, please execute a copy of this letter and return it to
us.
Very truly yours,
PFPC INC.
By: /s/ Executive Vice President
Title: Executive Vice President
Accepted: PENN SERIES FUNDS, INC.
By: /s/ Xxxxx X. Xxxxxx Date:
Title: Controller -----------------
