DISTRIBUTION AGREEMENT
PBHG INSURANCE SERIES FUND
THIS AGREEMENT is made as of this 1st day of May, 2001 between PBHG
Insurance Series Fund (the "Trust"), a Delaware business trust, and PBHG Fund
Distributors (the "Distributor"), a Pennsylvania business trust.
WHEREAS, the Trust is registered as an investment company with the
Securities and Exchange Commission ("SEC") under the Investment Company Act of
1940, as amended (the "1940 Act"), and is authorized to issue shares of common
stock ("Shares") in separately designated series ("Funds"), each with its own
objectives, investment program, policies and restrictions; and
WHEREAS, the Trust has registered the Shares of the Funds under the
Securities Act of 1933, as amended (the "1933 Act"), pursuant to a registration
statement on Form N-IA (the "Registration Statement"), including a prospectus
("Prospectus") and a statement of additional information ("Statement of
Additional Information"); and
WHEREAS, the Distributor is registered as a broker-dealer under the
Securities Exchange Act of 1934, as amended (the " 1934 Act"); and
WHEREAS, the Trust wishes to continue to engage the services of the
Distributor as principal underwriter and distributor of the Shares of the Funds
that now exist and that hereafter may be established, which are listed on
Exhibit A to this Agreement as may be amended from time to time, and the
Distributor is willing to continue to serve in that capacity.
NOW, THEREFORE, in consideration of the promises and mutual covenants and
agreements hereinafter set forth, the parties hereto, intending to be legally
bound, hereby agree as follows:
1. Appointment of Distributor.
(a) The Trust hereby appoints the Distributor as principal underwriter and
distributor of the Funds of the Trust to sell the Shares of the Funds in
jurisdictions wherein the Shares may be legally offered for sale. The
Distributor shall be the exclusive agent for the distribution of Shares of the
Funds; provided, however, that the Trust in its absolute discretion may issue
Shares of the Funds otherwise than through the Distributor in connection with
(i) the payment or reinvestment of dividends or distributions, (ii) any merger
or consolidation of the Trust or a Fund with any other investment company or
trust or any personal holding company, or the acquisition of the assets of any
such entity by the Trust or any Fund, and (iii) any offer of exchange authorized
by the Board of Trustees of the Trust. Notwithstanding any other provision
hereof, the Trust may terminate, suspend, or withdraw the offering of the Shares
of a Fund whenever, in its sole discretion, it deems such action to be
desirable.
(b) The Distributor agrees that it will use all reasonable efforts,
consistent with its other business, in connection with the distribution of
Shares of the Trust; provided, however, that the Distributor shall not be
prevented from entering into like arrangements with other issuers. The
provisions of this paragraph do not obligate the Distributor to register as a
broker or dealer under the state Blue Sky laws of any jurisdiction when it
determines it would be uneconomical for it to do so or to maintain its
registration in any jurisdiction in which it is now registered nor obligate the
Distributor to sell any particular number of Shares. The Distributor is
currently registered as a broker-dealer or exempt from registration in all
jurisdictions listed in Exhibit B hereto. The Distributor shall promptly notify
the Trust in the event it fails to maintain its registration in any jurisdiction
in which it is currently registered. The Distributor shall sell Shares of the
Funds as agent for the Trust at prices determined as hereinafter provided and on
the terms set forth herein, all according to applicable federal and state Blue
Sky laws and regulations and the Declaration of Trust and By-Laws of the Trust.
The Distributor may sell Shares of the Funds to or through qualified brokers,
dealers or others and shall require each such person to conform to the
provisions hereof, the Registration Statement, the then current Prospectus and
Statement of Additional Information, and applicable law. Neither the Distributor
nor any such person shall withhold the placing of purchase orders for Shares so
as to make a profit thereby.
(c) The Distributor shall order Shares of the Funds from the Trust only to
the extent that it shall have received purchase orders therefor. The Distributor
will not make, or authorize any brokers, dealers, or others to make, (i) any
short sales of Shares or (ii) - any sales of Shares to any Trustee or officer of
the Trust, the Distributor, or any corporation or association furnishing
investment advisory, managerial, or supervisory services to the Trust, or to any
such corporation or association, unless such sales are made in accordance with
the Trust's then current Prospectus and Statement of Additional Information.
(d) The Distributor is not authorized by the Trust to give any information
or to make any representation other than those contained in the then current
Prospectus, Statement of Additional Information, and Fund shareholder reports
("Shareholder Reports"), or in supplementary sales materials specifically
approved by the Trust. The Distributor may prepare and distribute sales
literature and other material as it may deem appropriate, provided that such
literature and- materials have been approved by the Trust prior to their use.
2. Offering Price of Shares. All Shares of each Fund sold under this
Agreement shall be sold at the public offering price per Share in effect at the
time of the sale as described in the Trust's then current Prospectus and
Statement of Additional Information; provided, however that any public offering
price for the Shares shall be the net asset value per Share, as determined in
the manner described in the Trust's then current Prospectus and/or Statement of
Additional Information. At no time shall the Trust receive less than the full
net asset value of the Shares, determined in the manner set forth in the then
current Prospectus and/or Statement of Additional Information.
3. Registration of Shares. The Trust agrees that it will take all actions
necessary to register Shares under the Federal and state Blue Sky securities
laws so that there will be available for sale the number of Shares the
Distributor may reasonably be expected to sell and to pay all fees associated
with said registration.
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4. Payment of Expenses.
(a) Except as otherwise provided herein, the Distributor shall pay,
or arrange for others to pay, all of the following expenses: (i) payments to
sales representatives of the Distributor and at the discretion of the
Distributor to qualified brokers, dealers and others in respect of the sale of
Shares of the Funds; (ii) compensation and expenses of employees of the
Distributor who engage in or support distribution of Shares of the Funds or
render shareholder support services not otherwise provided by the Trust's
transfer and shareholder servicing agent; and (iii) the cost of obtaining such
information, analyses, and reports with respect to marketing and promotional
activities as the Trust may from time to time reasonably request.
(b) The Trust shall pay, or arrange for others to pay, the following
expenses: (i) preparation, printing, and distribution to shareholders of
Prospectuses and Statements of Additional Information; (ii) preparation,
printing, and distribution of Shareholder Reports and other communications
required by law to shareholders; (iii) registration of the Shares of the Funds
under the federal securities laws; (iv) qualification of the Shares of the Funds
for sale in such states as the Distributor and the Trust may approve; (v)
maintaining facilities for the issue and transfer of Shares; (vi) supplying
information, prices, and other data to be furnished by the Trust- under this
Agreement; and (vii) taxes applicable to the sale or delivery of the Shares of
the Funds or certificates therefore.
(c) In connection with the Distributor's distribution of sales
materials, Prospectuses, Statements of Additional Information, and Shareholder
Reports to potential investors in the Trust, the Trust shall make available to
the Distributor such number of copies of such materials as the Distributor may
reasonably request. The Trust shall also furnish to the Distributor copies of
all information, financial statements and other documents the Distributor may
reasonably request for use in connection with the distribution of Shares of the
Trust. The Trust will enter into arrangements providing that persons other than
the Trust will bear any and all expenses of preparing, printing and providing to
the Distributor, sales materials, Prospectuses, Statements of Additional
Information and Shareholder Reports for distribution to potential investors in
the Trust.
5. Compensation. It is understood that the Distributor will not receive
any commissions or other compensation for acting as the Trust's principal
underwriter and distributor.
6. Repurchase of Shares. The Distributor as agent and for the account of
the Trust may repurchase Shares of the Funds offered for resale to it and redeem
such Shares at their net asset value determined as set forth in the then current
Prospectus and Statement of Additional Information.
7. Indemnification of Distributor. The Trust agrees to indemnify and hold
harmless the Distributor and each of its trustees and officers and each person,
if any, who controls the Distributor within the meaning of Section 15 of the
1933 Act against any loss, liability, claim, damages or expense (including the
reasonable cost of investigating or defending any alleged loss, liability,
damages, claim, or expense, and any reasonable counsel fees and disbursements
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incurred in connection therewith) arising by reason of any person acquiring any
Shares, based upon the ground that the Registration Statement, Prospectuses,
Statements of Additional Information, Shareholder Reports or other information
filed or made public by the Trust (as from time to time amended) included an
untrue statement of a material fact or omitted to state a material fact required
to be stated or necessary in order to make the statements made not misleading.
However, the Trust does not agree to indemnify the Distributor or hold it
harmless to the extent that the statements or omission was made in reliance
upon, and in conformity with, information furnished to the Trust by or on behalf
of the Distributor.
In no case (i) is the indemnity of the Trust to be deemed to protect the
Distributor against any liability to the Trust or its shareholders to which the
Distributor or such person otherwise would be subject by reason of willful
misfeasance, bad faith or negligence in tile performance of its duties or by
reason of its failure to exercise due care in rendering its services and duties
under this Agreement, or (ii) is the Trust to be liable to the Distributor under
the indemnity agreement contained in this section with respect to any claim made
against the Distributor or any person indemnified unless the Distributor or
other person shall have notified the Trust in writing of the claim within a
reasonable time after the summons or other first written notification giving
information of the nature of the claim shall have been served upon the
Distributor or such other person (or after the Distributor or the person shall
have received notice of service on any designated agent). However, failure to
notify the Trust of any claim shall not relieve the Trust from any liability
which it may have to the Distributor or any person against whom such action is
brought otherwise than on account of its indemnity agreement contained in this
section.
The Trust shall be entitled to participate at its own expense in the
defense or, if it so elects, to assume the defense of any suit brought to
enforce any claims subject to this indemnity provision. If the Trust elects to
assume the defense of any such claim, the defense shall be conducted by counsel
chosen by the Trust and satisfactory to the indemnified defendants in the suit
whose approval shall not be unreasonably withheld. In the event that the Trust
elects to assume the defense of any suit and retain counsel, the indemnified
defendants shall bear the fees and expenses of any additional counsel retained
by them. If the Trust does not elect to assume the defense of a suit, it will
reimburse the indemnified defendants for the reasonable fees and expenses of any
counsel retained by the indemnified defendants.
The Trust agrees to notify the Distributor promptly of the commencement of
any litigation or proceedings against it or any of its officers or Trustees in
connection with the issuance or sale of any of its Shares.
8. Indemnification of Trust. The Distributor covenants and agrees that it
will indemnify and hold harmless the Trust and each of its trustees and officers
and each person, if any, who controls the Trust within the meaning of Section 15
of the 1933 Act, against any loss, liability, damages, claim or expense
(including the reasonable cost of investigating or defending any alleged loss,
liability, damages, claim or expense, and reasonable counsel fees and
disbursements incurred in connection therewith) based upon the 1933 Act or any
other statute or common law and arising by reason of any person acquiring any
Shares, and alleging (i) a wrongful act or deed of the Distributor or any of its
employees or sales representatives, or (ii) that the Registration Statement,
Prospectuses, Statements of Additional Information, shareholder
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reports or other information filed or made public by the Trust (as from time to
time amended) included an untrue statement of a material fact or omitted to
state a material fact required to be stated or necessary in order to make the
statements not misleading, insofar as any such statements or omissions were made
in reliance upon and in conformity with information furnished to the Trust by or
on behalf of the Distributor.
In no case (i) is the indemnity of the Distributor in favor of the Trust
or any other person indemnified to be deemed to protect the Trust or any other
person against any liability to which the Trust or such other person would
otherwise be subject by reason of willful misfeasance or bad faith in the
performance of its duties or by reason of its failure to exercise due care in
rendering its services and duties under this Agreement, or (ii) is the
Distributor to be liable under its indemnity agreement contained in this section
with respect to any claim made against the Trust or any person indemnified
unless the Trust or person, as the case may be, shall have notified the
Distributor in writing of the claim within a reasonable time after the summons
or other first written notification giving information of the nature of the
claim shall have been served upon the Trust or upon any person (or after the
Trust or such person shall have received notice of service on any designated
agent). However, failure to notify the Distributor of any claim shall not
relieve the Distributor from any liability which it may have to the Trust or any
person against whom the action is brought otherwise than on account on its
indemnity agreement contained in this section.
The Distributor shall be entitled to participate, at its own expense, in
the defense or, if it so elects, to assume the defense of any suit brought to
enforce the claim, but if the Distributor elects to assume the defense, the
defense shall be conducted by counsel chosen by the Distributor and satisfactory
to the indemnified defendants, whose approval shall not be unreasonably
withheld. In the event that the Distributor elects to assume the defense of any
suit and retain counsel, the defendants in the suit shall bear the fees and
expenses of any additional counsel retained by them. If the Distributor does not
elect to assume the defense of any suit, it will reimburse the indemnified
defendants in the suit for the reasonable fees and expenses of any counsel
retained by them.
The Distributor agrees to notify the Trust promptly of the commencement of
any litigation or proceedings against it in connection with the issue and sale
of any of the Trust's Shares.
9. Term and Termination.
(a) This Agreement shall become effective as of the date hereof.
Unless sooner terminated as herein provided, this Agreement shall remain in full
force and effect for two (2) years from the effective date and thereafter for
successive periods of one year, but only so long as each such continuance is
specifically approved at least annually (i) either by vote of a majority of the
Board of Trustees of the Trust or by vote of a majority of the outstanding
voting securities of the Trust, and (ii) by vote of a majority of the Trustees
of the Trust who are not interested persons of the Trust and who have no direct
or indirect financial interest in the operation of this Agreement (the
"Independent Trustees"), cast in person at a meeting called for the purpose of
voting on such approval.
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(b) This Agreement may be terminated at any time, without the
payment of any penalty, by the Board of Trustees of the Trust or a majority of
the Independent Trustees, by vote of a majority of the outstanding voting
securities of the Trust, or by the Distributor, on not less than ninety (90)
days' written notice to the other party or upon such shorter notice as may be
mutually agreed upon.
(c) This Agreement shall automatically terminate in the event of its
assignment.
(d) The indemnification provisions contained in Sections 8 and 9 of
this Agreement shall remain in full force and effect regardless of any
termination of this Agreement.
10. Amendment. No provisions of this Agreement may be changed, waived,
discharged, or terminated orally, but only by an instrument in writing signed by
the party against which enforcement of the change, waiver, discharge, or
termination is sought. If the Trust should at any time deem it necessary or
advisable in the best interests of the Trust that any amendment of this
Agreement be made in order to comply with the recommendations or requirements of
the SEC or other governmental authority or to obtain any advantage under state
or federal tax laws and notifies Distributor of the form of such amendment, and
the reasons therefor, and if Distributor should decline to assent to such
amendment, the Trust may terminate this Agreement forthwith. If Distributor
should at any time request that a change be made in the Trust's Declaration of
Trust or By-Laws or in its methods of doing business, in order to comply with
any requirements of Federal law or regulations of the SEC, or of a national
securities association of which Distributor is or may be a member relating to
the sale of Shares, and the Fund should not make such necessary change within a
reasonable time, Distributor may terminate this Agreement forthwith.
11. Independent Contractor. Distributor shall be an independent contractor
and neither Distributor nor any of its officers, trustees, employees, or
representatives is or shall be an employee of the Trust in the performance of
Distributor's duties hereunder. Distributor shall be responsible for its own
conduct and the employment, control, and conduct of its agents and employees and
for injury to such agents or employees or to others through its agents or
employees. Distributor assumes full responsibility for its agents and employees
under applicable statutes and agrees to pay all employee taxes thereunder.
12. Definition of Certain Terms. For purposes of this Agreement the terms
"assignment," "interested person," "majority of the outstanding voting
securities," and "principal underwriter" shall have their respective meanings
defined in the 1940 Act and the rules and regulations thereunder, subject,
however, to such exemptions as may be granted to either the Distributor or the
Trust by the SEC, or such interpretative positions as may be taken by the SEC or
its staff under the 1940 Act.
13. Notice. Any notice under this Agreement shall be deemed to be
sufficient if it is given in writing, addressed and delivered, or mailed
postpaid (a) if to the Distributor, to PBHG Fund Distributors, 0000 Xxxxxxx
Xxxxx Xxxxx, Xxxxx, Xxxxxxxxxxxx 00000; and (b) if to the
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Trust, to PBHG Insurance Series Fund, 0000 Xxxxxxx Xxxxx Xxxxx, Xxxxx,
Xxxxxxxxxxxx 00000, Attention: Xxx X. Xxxxxxxx.
14. Captions. The captions in this Agreement are included for convenience
of reference only and in no other way define or delineate any of the provisions
hereof or otherwise affect construction or effect.
15. Interpretation. Nothing herein contained shall be deemed to require
the Trust or the Distributor to take any action contrary to its Declaration of
Trust or By-Laws, or any applicable statutory or regulatory requirement to which
it is subject or by which it is bound, or to relieve or deprive the Board of
Trustees of its responsibility for and control of the conduct of the affairs of
the Trust.
16. Governing Law. This Agreement shall be construed in accordance with
the laws of the Commonwealth of Pennsylvania and the applicable provisions of
the 1940 Act. To the extent that the applicable laws of the Commonwealth of
Pennsylvania or any of the provisions herein, conflict with the applicable
provisions of the 1940 Act, the latter shall control.
17. Multiple Originals. This Agreement may be executed in two or more
counterparts, each of which when so executed shall be deemed to be an original,
but such counterparts shall together constitute but one and the same instrument.
IN WITNESS WHEREOF, the Trust and Distributor have each duly executed this
Agreement, as of the day and year above written.
PBHG INSURANCE SERIES FUND
Name: /s/Xxx X. Xxxxxxxx
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Xxx X. Xxxxxxxx
Title: Chief Financial Officer
PBHG FUND DISTRIBUTORS
Name: /s/Xxxxxxx X. Xxxxxx
------------------------------
Xxxxxxx X. Xxxxxx
Title: Chief Financial Officer
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Exhibit A
This Distribution Agreement is by and between PBHG Fund Distributors and
PBHG Insurance Series Fund on behalf of the following Funds:
PBHG Growth II Portfolio
PBHG Large Cap Growth Portfolio
PBHG Select Value Portfolio
PBHG Mid-Cap Value Portfolio
PBHG Small Cap Value Portfolio
PBHG Technology & Communications Portfolio
PBHG Select 20 Portfolio
PBHG Small Cap Growth Portfolio
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