PARTICIPATION AGREEMENT among LEGG MASON PARTNERS VARIABLE AGGRESSIVE GROWTH PORTFOLIO, LEGG MASON PARTNERS VARIABLE MID CAP CORE PORTFOLIO, LEGG MASON INVESTOR SERVICES, LLC and PACIFIC LIFE INSURANCE COMPANY
among
XXXX XXXXX PARTNERS VARIABLE AGGRESSIVE GROWTH PORTFOLIO,
XXXX XXXXX PARTNERS VARIABLE MID CAP CORE PORTFOLIO,
XXXX XXXXX INVESTOR SERVICES, LLC
and
PACIFIC LIFE INSURANCE COMPANY
THIS AGREEMENT, made and entered into this 3rd day of April, 2007 by and
among Pacific Life Insurance Company, a Nebraska corporation (the “Company”), on its own behalf and
on behalf of each segregated asset account of the Company set forth on Schedule A hereto as may be
amended from time to time (each such account hereinafter referred to as the “Account”), and Xxxx
Xxxxx Partners Variable Aggressive Growth Portfolio, a Maryland corporation, and Xxxx Xxxxx
Partners Variable Mid Cap Core Portfolio, a Maryland corporation. (each a “Fund”, collectively
the “Funds”) , and Xxxx Xxxxx Investor Services, LLC, a Maryland limited liability company (the
“Distributor”).
WHEREAS, the Fund engages in business as an open-end management investment company and is
available to act as (i) the investment vehicle for certain qualified pension and retirement plans
(“Qualified Plans”), and (ii) the investment vehicle for separate accounts established for variable
life insurance policies and variable annuity contracts (collectively, the “Contracts”) to be
offered by insurance companies that have entered into participation agreements with the Fund and
the Distributor (each, a “Participating Insurance Company” and collectively, the “Participating
Insurance Companies”);
WHEREAS, the beneficial interests in the Fund are divided into several series of shares, (each
designated a “Portfolio”) and, in certain cases classes of shares, represent the interest in a
particular managed portfolio of securities and other assets;
WHEREAS, the Fund has obtained an order from the Securities and Exchange Commission (the
“SEC”), granting the Participating Insurance Companies and variable annuity and variable insurance
separate accounts exemptions from the provisions of Sections 9(a), 13(a), 15(a), and 15(b) of the
Investment Company Act of 1940, as amended, (the “1940 Act”) and Rules 6e-2(b)(15) and
6e-3(T)(b)(15) thereunder, to the extent necessary to permit shares of the Fund to be sold to and
held by variable annuity and variable life insurance separate accounts of both affiliated and
unaffiliated life insurance companies (the “Mixed and Shared Funding Exemptive Order”);
WHEREAS, the Fund is registered as an open-end management investment company under the 1940
Act and its shares are registered under the Securities Act of 1933, as amended (the “1933 Act”);
WHEREAS, the Distributor is duly registered as a broker-dealer under the Securities Exchange
Act of 1934 (the “Exchange Act”) and any applicable state securities law;
WHEREAS, the Distributor is a distributor of shares of the Portfolios of the Fund;
WHEREAS, the Company have registered or will register certain Contracts under the 1933 Act, or
such Contracts are or will be exempt from registration thereunder;
WHEREAS, the Account is a duly organized, validly existing segregated asset account,
established by resolution of the Board of Directors of the Company to set aside and invest assets
attributable to one or more Contracts;
WHEREAS, the Account is or will be registered as an investment company under the 1940 Act, or
the Account is or will be exempt from registration under the 1940 Act; and
WHEREAS, to the extent permitted by applicable insurance laws and regulations, the Company
intend to purchase shares in the Portfolios on behalf of each Account to fund certain of the
aforesaid Contracts,
NOW, THEREFORE, in consideration of their mutual promises the Company, the Fund and the
Distributor agree as follows:
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ARTICLE I.
Sale of Fund Shares
1.1 The Fund agrees to sell to the Company those shares of the Fund which each
Account orders, executing such orders on a daily basis at the net asset value next computed after
receipt by the Fund or its designee of the order for Fund shares. For purposes of this Section
1.1, the Company shall be the designee of the Fund for receipt of such orders from each Account and
receipt by such designee shall constitute receipt by the Fund, provided that: (i) the orders are
received by the Company (or their designee) in good order prior to the time the net asset value of
each Portfolio is priced in accordance with its Prospectus 1 (generally at the
close of regular trading on the New York Stock Exchange (the “NYSE”) at 4:00 p.m. Eastern Time),
and (ii) the Fund receives notice of such order by 10:00 a.m. Eastern Time on the next following
“Business Day.” “Business Day” shall mean any day on which the NYSE is open for regular trading
and on which the Fund calculates its net asset value pursuant to the rules of the SEC. The Company
may submit orders via facsimile.
1.2 The Fund agrees to make its shares available indefinitely for purchase at the
applicable net asset value per share by the Company and its Accounts on those days on which the
Fund calculates its net asset value pursuant to rules of the SEC and the Fund shall use its best
efforts to calculate such net asset value on each day which the NYSE is open for trading.
Notwithstanding the foregoing, the Board of Directors of the Fund (the “Board”) may refuse to sell
shares of any Portfolio to any person, or suspend or terminate the offering of shares of any
Portfolio if such action is required by law or by any regulatory authority having jurisdiction or
is, in the sole discretion of the Board acting in good faith and in light of their fiduciary duties
under federal and any applicable state laws, necessary in the best interest of the shareholders of
such Portfolio.
| 1 | The term “Prospectus,” as used herein, refers to the prospectus and related statement of additional information (the “Statement of Additional Information”) incorporated therein by reference (each as amended or supplemented) on file with the SEC at the time in question. |
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1.3 The Fund and the Distributor agree that shares of the Fund will be sold only to
Participating Insurance Companies and their separate accounts and, in accordance with the terms of
the Mixed and Shared Funding Exemptive Order, certain Qualified Plans. No shares of any Portfolio
will be sold to the general public.
1.4 The Fund will not sell Fund shares to any insurance company or separate account
unless an agreement containing provisions substantially the same as Articles I, III, V, VI and
Section 2.5 of Article II of this Agreement is in effect to govern such sales.
1.5 The Fund agrees to redeem for cash, on the Company’s request, any full or
fractional shares of the Fund held by the Company, executing such requests on a daily basis at the
net asset value next computed after receipt by the Fund or its designee of the request for
redemption. For purposes of this Section 1.5, the Company shall be the designee of the Fund for
receipt of requests for redemption from the Account and receipt by such designee shall constitute
receipt by the Fund, provided that: (i) the orders are received by the Company (or its designee)
in good order prior to the time the net asset value of each Portfolio is priced in accordance with
its Prospectus (generally at the close of regular trading on the NYSE at 4:00 p.m. Eastern Time),
and (ii) provided that the Fund receives notice of such request for redemption by 10:00 a.m.
Eastern Time on the next following “Business Day.” The Company may submit requests for redemption
via facsimile. The Fund may impose redemption fees, as described in the Prospectus.
1.6 The Company agrees to purchase and redeem the shares of each Portfolio offered
by the then current Prospectus of the Fund and in accordance with the provisions of such
Prospectus. The Company agrees that all net amounts available under the Contracts with the form
number(s) which are listed on Schedule A attached hereto and incorporated herein by this reference,
as such Schedule A may be amended from time to time hereafter by mutual written agreement of all
the parties hereto, shall be invested in the Fund, in such other Funds selected by the Company or
in the Company’s general account. The Company agrees to comply with the terms of the Rule 12b-1
Plan described in Section 2.6 hereof.
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The Company agrees to comply with the provisions of Rule 22c-2 under the 1940 Act as
applicable to the Fund (including reporting procedures adopted to comply with the Rule).
1.7 The Company shall pay for Fund shares on the next “Business Day” after an order
to purchase Fund shares is made in accordance with the provisions of Section 1.1 hereof. Payment
shall be in federal funds transmitted by wire. For purpose of Sections 2.9 and 2.10, upon receipt
by the Fund of the federal funds so wired, such funds shall cease to be the responsibility of the
Company and shall become the responsibility of the Fund.
1.8 Issuance and transfer of the Fund’s shares will be by book entry only. Stock
certificates will not be issued to the Company or any Account. Shares ordered from the Fund will
be recorded in an appropriate title for each Account or the appropriate subaccount of each Account.
1.9 The Fund shall furnish same day notice by wire, telephone (followed by written
confirmation), electronic media or fax to the Company of any income, dividends or capital gain
distributions payable on the Fund’s shares. The Company hereby elects to receive all such income
dividends and capital gain distributions as are payable on Portfolio shares in additional shares of
the applicable Portfolio. The Company reserves the right to revoke this election and to receive
all such income dividends and capital gain distributions in cash. The Fund shall notify the
Company of the number of shares so issued as payment of such dividends and distributions.
1.10 The Fund shall provide (electronically or by fax) the closing net asset value
per share for each Portfolio to the Company on a daily basis as soon as reasonably practical after
the closing net asset value per share is calculated (normally 6:30 p.m. Eastern Time) and shall use
its best efforts to make such net asset value per share available by 7:00 p.m. Eastern Time. In
the event that the Fund is unable to meet the 7:00 p.m. time stated immediately above, then the
Fund shall immediately notify the Company and provide the Company with additional time to notify
the Fund of purchase or redemption orders pursuant to Sections 1.1 and 1.5, respectively, above.
Such additional time shall be equal to the additional time that the Fund takes to make the closing
net asset values available to the Company. If the Fund provides the
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Company with the incorrect closing share net asset value information, the Company, on behalf
of the Account, shall be entitled to a prompt adjustment to the number of shares purchased or
redeemed to reflect the correct share net asset value, and the Fund or the Distributor shall bear
the cost of correcting such errors. Upon a final determination that there has been an error in the
calculation of the closing net asset value, dividend or capital gain, the Fund shall promptly
report such error to the Company.
1.11 The Fund shall, upon request of the Company, provide a manual daily confirmation of trade
activity from the previous “Business Day.” Such confirmation shall include the dollar amount of
purchases or redemptions submitted by the Company for each Portfolio, price per share of each
Portfolio, and the corresponding total share amount of such purchase or redemption, and shall be
transmitted to the Company on the Business Day following the request.
1.12 The Fund shall, upon request of the Company, provide on a monthly basis, a screen printed
report of the monthly trade activity for the Account which shall be transmitted to the Company on
the “Business Day” following the request.
ARTICLE II.
Representations and Warranties
2.1 The Company represents and warrants that the Contracts are or will be registered
under the 1933 Act, unless exempt from such registration, and that the Contracts will be issued and
sold in compliance in all material respects with all applicable Federal and State laws and
regulations. The Company shall amend the registration statements for its Contracts under the 1933
Act and 1940 Act from time to time as required to effect the continuous offering of its Contracts.
The Company represents and warrants that it is an insurance company duly organized and in good
standing under Nebraska law and that it has legally and validly established each Account prior to
any issuance or sale thereof as a segregated asset account under Nebraska insurance laws and has
registered or, prior to any issuance or sale of the Contracts, will register each Account as a unit
investment trust in accordance with the provisions of the 1940 Act to serve as a segregated
investment account for the Contracts, unless exempt from such registration. The Company represents
and warrants that the Company and the Account are in compliance
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with Rule 38a-1 under the 1940 Act. The Company represents and warrants that it has
implemented controls designed to prevent, and will provide any reasonable assistance requested by
the Fund related to the deterrence of, market timing and/or late trading of shares of the Fund.
Further, the Company represents and warrants that:
(a) The Company has in place an anti-money laundering program (“AML program”) that does now
and will continue to comply with applicable laws and regulations, including the relevant provisions
of the Bank Secrecy Act and the USA PATRIOT Act (Pub. L. No. 107-56 (2001)), as they may be
amended, and the regulations issued thereunder by duly vested regulatory authority and the conduct
the Rules of the NASD and the NYSE, as applicable (“Anti-Money Laundering Law and Regulation”).
(b) The Company has, after undertaking reasonable inquiry, no information or knowledge that
(i) any Contract owners of all separate accounts investing in the Fund, or (ii) any person or
entity controlling, controlled by or under common control with such Contract owners is an
individual or entity or in a country or territory that is on an Office of Foreign Assets Control
(“OFAC”) list or similar list of sanctioned or prohibited persons maintained by a U.S. governmental
or regulatory body.
(c) The Company has in place, and has conducted due diligence pursuant to, policies,
procedures and internal controls reasonably designed (i) to verify the identity of Contract owners,
and (ii) to identify those Contract owners’ sources of funds, and have no reason to believe that
any of the invested funds were derived from illegal activities.
(d) The Company will provide the Fund or the Distributor (or their respective service
providers) upon reasonable request any information regarding specific accounts that may be
reasonably necessary for the Fund and its service providers to fulfill their responsibilities
relating to their anti-money laundering programs or any other information reasonably requested by
the Fund or the Distributor (or their repestive service providers) to assist with compliance with
the Anti-Money Laundering Law and Regulation, as may be permitted by law or regulation.
(e) The Company will promptly notify the Fund and the Distributor should the Company become
aware of any change in the above representations and warranties. In addition, the Fund
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and the Distributor hereby provide notice to the Company that the Fund and/or the Distributor
reserve the right to make inquires of and request additional information from the Company regarding
its AML program.
2.2 The Fund represents and warrants that Fund shares sold pursuant to this
Agreement shall be registered under the 1933 Act, duly authorized for issuance and sold in
compliance with the laws of the State of Maryland, as applicable, and all applicable federal and
state securities laws. Further, the Fund represents and warrants that the Fund is in compliance
with Rule 38a-1 under the 1940 Act. The Fund is and shall remain registered under the 0000 Xxx.
The Fund shall amend the registration statement for its shares under the 1933 Act and the 1940 Act
from time to time as required in order to effect the continuous offering of its shares. The Fund
shall register and qualify the shares for sale in accordance with the laws of the various states
only if and to the extent deemed advisable by the Fund or the Distributor. The Fund shall provide
to the Company upon request a list of the various jurisdictions in which the Portfolios are
registered.
2.3 The Fund represents that it is currently qualified as a Regulated Investment
Company under Subchapter M of the Internal Revenue Code of 1986, as amended, (the “Code”) and that
it will make every effort to maintain such qualification (under Subchapter M or any successor or
similar provision) and that it will notify the Company immediately upon having a reasonable basis
for believing that it has ceased to so qualify or that it might not so qualify in the future. The
parties acknowledge that compliance with Subchapter M is an essential element of compliance with
Section 817(h) of the Code.
2.4 The Company represents that the Contracts are currently treated as endowment,
annuity or life insurance contracts, under applicable provisions of the Code and that it will make
every effort to maintain such treatment and that it will notify the Funds and the Distributor
immediately upon having a reasonable basis for believing that the Contracts have ceased to be so
treated or that they might not be so treated in the future.
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2.5 The Fund shall at all times, consistent with instructions from the Company
received initially and from time to time thereafter, invest money from the Contracts in such a
manner as to ensure that the Contracts shall be treated as variable contracts under the Code and
the regulations issued thereunder. Without limiting the scope of the foregoing, the Fund and its
Portfolios shall at all times comply with Section 817(h) of the Code, including without limitation
Treasury Regulation 1.817-5, relating to the diversification requirements for variable annuity,
endowment, or life insurance contracts and any amendments or other modifications to such Section or
Regulations. The Fund will notify the Company immediately upon having a reasonable basis for
believing that a Portfolio has ceased to so qualify or that a Portfolio might not so qualify in the
future. In addition, the Fund will immediately take all steps necessary to adequately diversify
the Portfolio to achieve compliance.
2.6 The Fund has adopted a Rule 12b-1 Plan under which it makes payments to finance
administrative, service, and distribution expenses with respect to certain Portfolios. The Fund
represents and warrants that its Board, a majority of whom are not interested persons of the Fund,
has approved such Rule 12b-1 Plan to finance administrative, service, and distribution expenses of
the Fund’s Portfolios that are subject to a 12b-1 fee, and that any changes to the Fund’s Rule
12b-1 Plan will be approved, in accordance with Rule 12b-1 under the 0000 Xxx.
2.7 The Fund makes no representation as to whether any aspect of its operations
(including, but not limited to, fees, expenses and investment policies) complies with the insurance
laws or regulations of various states except that the Fund represents that the Fund’s investment
policies, fees and expenses are and shall at all times remain in compliance with the laws of its
state of domicile, and the Fund represents that its respective operations are and shall at all
times remain in material compliance with the laws of its state of domicile, to the extent required
to perform this Agreement.
2.8 The Distributor represents and warrants that the Distributor is and shall remain
duly registered in all material respects under all applicable federal and state laws and
regulations and that the
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Distributor shall perform its obligations for the Fund in compliance in all material respects
with the laws of the State of Maryland, and any applicable state and federal laws and regulations.
2.9 The Fund represents and warrants that its directors, officers, employees, and
other individuals/entities dealing with the money and/or securities of the Fund are and shall
continue to be at all times covered by a blanket fidelity bond or similar coverage for the benefit
of the Fund in an amount not less than the minimal coverage as required currently by Rule 17g-1 of
the 1940 Act or related provisions as may be promulgated from time to time. The aforesaid bond
shall include coverage for larceny and embezzlement and shall be issued by a reputable bonding
company.
2.10 The Company represents and warrants that all of its directors, officers,
employees, investment advisers, and other individuals/entities dealing with the money and/or
securities of the Fund are and shall continue to be at all times covered by a blanket fidelity bond
or similar coverage for the benefit of the Fund, in an amount not less than the minimal coverage as
required currently by entities subject to the requirements of Rule 17g-1 of the 1940 Act or related
provisions as may be promulgated from time to time. The aforesaid bond shall include coverage for
larceny and embezzlement and shall be issued by a reputable bonding company.
2.11 Each party to this Agreement will maintain all records required by law,
including records detailing the services it provides. Such records will be preserved, maintained
and made available to the extent required by law and in accordance with the 1940 Act and the rules
thereunder. Upon request by the Fund or the Distributor, the Company agrees promptly to make
copies or, if required, originals of all records pertaining to the performance of services under
this Agreement available to the Fund or the Distributor, as the case may be. The Fund agrees that
the Company will have the right to inspect, audit and copy all records pertaining to the
performance of services under this Agreement pursuant to the requirements of any state insurance
department. Each party also agrees promptly to notify the other parties if it experiences any
difficulty in maintaining the records in an accurate and complete manner. This provision shall
survive termination of the Agreement.
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ARTICLE III.
Prospectuses and Proxy Statements; Voting
3.1 The Distributor shall provide the Company (at the Company’s expense) with as
many copies of the Fund’s current Prospectus as the Company may reasonably request. If requested
by the Company in lieu thereof, the Fund shall provide such documentation (including a final copy
of the new Prospectus as set in type at the Fund’s expense — in lieu thereof, such final copy may
be provided, if requested by the Company, electronically or through camera ready film) and other
assistance as is reasonably necessary in order for the Company once each year (or more frequently,
if the Prospectus for the Fund is amended) to have the prospectus for each Contract and the Fund’s
Prospectus printed together in one document. Company will determine Fund’s pro rata share of the
cost of printing and distributing the Prospectus to existing policy owners invested in the Fund and
shall invoice Distributor for such amount. Distributor will pay or cause to be paid such invoiced
amount.. Upon request of Distributor, Company shall provide records to demonstrate the calculation
of the amount invoiced.
3.2 The Fund’s Prospectus shall state that the Statement of Additional Information
for the Fund is available from the Distributor (or in the Fund’s discretion, the Prospectus shall
state that such Statement is available from the Fund), and the Distributor (or the Fund), at its
expense, shall print and provide such Statement free of charge to the Company and to any owner of a
Contract or prospective owner who requests such Statement.
3.3 The Fund, at its expense, shall provide the Company with copies of its proxy
material, reports to shareholders, and other communications to shareholders in such quantity as the
Company shall reasonably require for distributing to Contract owners.
3.4 If and to the extent required by law the Company shall:
(a) solicit voting instructions from Contract owners;
(b) vote Fund shares in accordance with instructions received from Contract owners; and
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(c) vote Fund shares for which no instructions have been received in the same proportion as
Fund shares of such Portfolio for which instructions have been received,
so long as and to the extent that the SEC continues to interpret the 1940 Act to require
pass-through voting privileges for owners of Contracts. The Company reserves the right to vote
Fund shares held in any segregated asset account in its own right, to the extent permitted by law.
Each Participating Insurance Company shall be responsible for assuring that each of its separate
accounts participating in the Fund calculates voting privileges in a manner consistent with this
Section.
3.5 The Fund will comply with all provisions of the 1940 Act requiring voting by
shareholders, and in particular the Fund will either provide for annual meetings or comply with
Section 16(c) of the 1940 Act (although the Fund is not one of the trusts described in Section
16(c) of that Act) as well as with Sections 16(a) and, if and when applicable, 16(b). Further, the
Fund will act in accordance with the SEC’s interpretation of the requirements of Section 16(a) with
respect to periodic elections of directors and with whatever rules the SEC may promulgate with
respect thereto.
ARTICLE IV.
Sales Material and Information
4.1 The Company shall furnish, or shall cause to be furnished, to the Fund or its
designee, each piece of sales literature or other promotional material in which the Fund or its
investment adviser or any of its underwriters is named, at least fifteen (15) “Business Days” prior
to its use. No such material shall be used if the Fund or its designee objects to such use within
fifteen (15) “Business Days” after receipt of such material.
4.2 The Company shall not give any information or make any representations or
statements on behalf of the Fund or concerning the Fund in connection with the sale of the
Contracts other than the information or representations contained in the registration statement or
Prospectus for the Fund shares, as such registration statement and Prospectus may be amended or
supplemented from time to time, or in reports or proxy statements for the Fund, or in sales
literature or other promotional material approved by
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the Fund or the Distributor or the designee of either, except with the permission of the Fund
or the Distributor or the designee of either.
4.3 The Fund and the Distributor, or the designee of either shall furnish, or shall
cause to be furnished, to the Company or its designee, each piece of sales literature or other
promotional material in which the Company and/or its Account(s), is named at least fifteen (15)
“Business Days” prior to its use. No such material shall be used if the Company or its designee
objects to such use within fifteen (15) “Business Days” after receipt of such material.
4.4 The Fund and the Distributor shall not give any information or make any
representations on behalf of the Company or concerning the Company, an Account, or the Contracts
other than the information or representations contained in a registration statement or prospectus
for the Contracts, as such registration statement and prospectus may be amended or supplemented
from time to time, or in published reports for each Account which are in the public domain or
approved by the Company for distribution to Contract owners, or in sales literature or other
promotional material approved by the Company or its designee, except with the permission of the
Company.
4.5 Upon request, the Fund will provide to the Company at least one complete copy of
all registration statements, Prospectuses, Statements of Additional Information, reports, proxy
statements, sales literature and other promotional materials, applications for exemptions, requests
for no-action letters, and all amendments to any of the above, that relate to the Fund or its
shares.
4.6 Upon request, the Company will provide to the Fund at least one complete copy of
all registration statements, prospectuses, Statements of Additional Information, reports,
solicitations for voting instructions, sales literature and other promotional materials,
applications for exemptions, requests for no action letters, and all amendments to any of the
above, that relate to the Contracts or the Account.
4.7 For purposes of this Article IV, the phrase “sales literature or other
promotional material” includes, but is not limited to, advertisements (such as materials published,
or designed for use, in a newspaper, magazine, or other periodical, radio, television, telephone or
tape recording, videotape display,
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signs or billboards, motion pictures, or other public media), sales literature, (i.e., any
written communication distributed or made generally available to customers or the public, including
brochures, circulars, research reports, market letters, form letters, seminar texts, reprints or
excerpts of any other advertisement, sales literature, or published article), educational or
training materials or other communications distributed or made generally available to some or all
agents or employees, and registration statements, prospectuses, statements of additional
information, shareholder reports, and proxy materials and any other material constituting sales
literature or advertising under the National Association of Securities Dealers, Inc. (the “NASD”)
rules, the 1940 Act, the 1933 Act, or rules thereunder.
ARTICLE V.
Fees and Expenses
5.1 All expenses incident to performance by the Fund under this Agreement shall be
paid by the Fund. The Fund shall see to it that all its shares are registered and authorized for
issuance in accordance with applicable federal law and, if and to the extent deemed advisable by
the Fund, in accordance with applicable state laws prior to their sale. The Fund shall bear the
expenses for the cost of registration and qualification of the Fund’s shares, preparation and
filing of the Fund’s Prospectus and registration statement, proxy material, information statements
and reports, setting the Fund’s Prospectus for printing, setting in type and printing the proxy
material, information statements and reports to shareholders, and the preparation of all statements
and notices required by any federal or state law. The Fund shall bear the cost of printing and
distributing the Fund’s Prospectus, periodic reports to shareholders, proxy materials and other
shareholder communications to existing Contract owners. The Company shall see to it that each of
the Contracts and the Accounts are registered and are authorized for issuance in accordance with
applicable federal law. The Company shall bear the expenses for the cost of registration and
qualification of the Contracts and the Accounts, preparation and filing of the applicable
prospectus and registration statements, setting each Contract prospectus for printing, and the
preparation of all statements and notices required by any federal or state law. In addition, the
Company shall bear the cost of printing and distributing the Fund’s Prospectus to be delivered to
prospective Contract owners and
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the Fund shall bear the cost of printing and distributing the Fund’s Prospectus to existing
Contract owners who are invested in the Fund in accordance with Section 3.1 of this Agreement.
5.2 So long as this Agreement remains in effect, Distributor will pay or cause to be paid
to Company any ongoing distribution fees and/or shareholder service fees with respect to Shares
purchased through Company and held by Contractholders and the services to be provided under this
Agreement at such rates and in such manner as may be described in the Prospectus and as may be
agreed to by the parties from time-to-time.
5.3 Each Fund’s Board has adopted a Distribution Plan pursuant to Rule 12b-1 of the
1940 Act (the “Plans”) with respect to applicable Shares. Under the terms of the Plans,
Distributor may be entitled to compensation for distribution related services that Distributor
provides to the Funds, and Distributor is permitted to pay all or a portion of such compensation to
entities that engage in or support the distribution of Shares. For the services to be provided
under this Agreement and for so long as this Agreement remains in effect, we agree to pay you in
accordance with the Funds’ then current Prospectus and/or SAI.
5.4 In the event Distributor does not receive payment from Fund under the
Distribution Agreement or applicable Plan or as otherwise provided in the Prospectus, or if such
Distribution Agreement or Plan is cancelled, terminated or modified, Company agrees to waive its
right to receive compensation until such time, if ever, Distributor receives payment.
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ARTICLE VI.
Potential Conflicts
6.1 The Board will monitor the Fund for the existence of any material irreconcilable
conflict among the interests of the Contract owners of all separate accounts investing in the Fund.
An irreconcilable material conflict may arise for a variety of reasons, including: (a) an action
by any state insurance regulatory authority; (b) a change in applicable federal or state insurance,
tax or securities laws or regulations, or a public ruling, private letter ruling, no-action or
interpretive letter, or any similar action by insurance, tax, or securities regulatory authorities;
(c) an administrative or judicial decision in any relevant proceeding; (d) the manner in which the
investments of any Portfolio are being managed; (e) a difference in voting instructions given by
variable annuity contract owners and variable life insurance contract owners; or (f) a decision by
an insurer to disregard the voting instructions of Contract owners. The Board shall promptly
inform the Company if they determine that an irreconcilable material conflict exists and the
implications thereof.
6.2 The Company will report any potential or existing conflicts of which it is aware
to the Board. The Company will assist the Board in carrying out its responsibilities under the
Mixed and Shared Funding Exemptive Order, by providing the Board with all information reasonably
necessary for the Board to consider any issues raised. This includes, but is not limited to, an
obligation by the Company to inform the Board whenever Contract owners’ voting instructions are
disregarded.
6.3 If it is determined by a majority of the Board, or a majority of its
disinterested directors, that a material irreconcilable conflict exists, the Company and other
Participating Insurance Companies shall, at their expense and to the extent reasonably practicable
(as determined by a majority of the disinterested directors), take whatever steps are necessary to
remedy or eliminate the irreconcilable material conflict, up to and including: (1) withdrawing the
assets allocable to some or all of the separate accounts from the Fund or any Portfolio and
reinvesting such assets in a different investment medium, including (but not limited to) another
Portfolio of the Fund, or submitting the question whether such
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segregation should be implemented to a vote of all affected Contract owners and, as
appropriate, segregating the assets of any appropriate group, (i.e., annuity Contract owners, life
insurance Contract owners, or Contract owners of one or more Participating Insurance Companies)
that votes in favor of such segregation, or offering to the affected contract owners the option of
making such a change; and (2) establishing a new registered management investment company or
managed separate account.
6.4 If a material irreconcilable conflict arises because of a decision by the
Company to disregard Contract owners’ voting instructions and that decision represents a minority
position or would preclude a majority vote, the Company may be required, at the Fund’s election, to
withdraw the affected Account’s investment in the Fund and terminate this Agreement with respect to
such Account; provided, however that such withdrawal and termination shall be limited to the extent
required by the foregoing material irreconcilable conflict as determined by a majority of the
disinterested members of the Board. Any such withdrawal and termination must take place within six
(6) months after the Fund gives written notice that this provision is being implemented, and until
the end of that six-month period the Fund and the Distributor shall continue to accept and
implement orders by the Company for the purchase (and redemption) of Fund shares.
6.5 If a material irreconcilable conflict arises because a particular state
insurance regulator’s decision applicable to the Company conflicts with the majority of other state
regulators, then the Company will withdraw the affected Account’s investment in the Fund and
terminate this Agreement with respect to such Account within six (6) months after the Board informs
the Company in writing that it has determined that such decision has created an irreconcilable
material conflict; provided, however, that such withdrawal and termination shall be limited to the
extent required by the foregoing material irreconcilable conflict as determined by a majority of
the disinterested members of the Board. Until the end of the foregoing six-month period, the Fund
and the Distributor shall continue to accept and implement orders by the Company for the purchase
(and redemption) of Fund shares.
6.6 For purposes of Sections 6.3 through 6.6 of this Agreement, a majority of the
disinterested members of the Board shall determine whether any proposed action adequately remedies any
D-17
irreconcilable material conflict, but in no event will the Fund be required to establish a new
funding medium for the Contracts. The Company shall not be required by Section 6.3 to establish a
new funding medium for the Contracts if an offer to do so has been declined by vote of a majority
of Contract owners materially adversely affected by the irreconcilable material conflict. In the
event that the Board determines that any proposed action does not adequately remedy any
irreconcilable material conflict, then the Company will withdraw the Account’s investment in the
Fund and terminate this Agreement within six (6) months after the Board informs the Company in
writing of the foregoing determination, provided, however, that such withdrawal and termination
shall be limited to the extent required by any such material irreconcilable conflict as determined
by a majority of the disinterested members of the Board.
6.7 If and to the extent that Rule 6e-2 and Rule 6e-3(T) are amended, or Rule 6e-3
is adopted, to provide exemptive relief from any provision of the Act or the rules promulgated
thereunder with respect to mixed or shared funding (as defined in the Mixed and Shared Funding
Exemptive Order) on terms and conditions materially different from those contained in the Mixed and
Shared Funding Exemptive Order, then (a) the Fund and/or the Participating Insurance Company, as
appropriate, shall take such steps as may be necessary to comply with Rules 6e-2 and 6e-3(T) as
amended, and Rule 6e-3, as adopted, to the extent such rules are applicable; and (b) Sections 3.4,
3.5, 6.1, 6.2, 6.3, 6.4 and 6.5 of this Agreement shall continue in effect only to the extent that
terms and conditions substantially identical to such Sections are contained in such Rule(s) as so
amended or adopted.
ARTICLE VII.
Indemnification
7.1 Indemnification by the Company
(a) The Company agrees to indemnify and hold harmless the Fund and each of its
directors and officers and each person, if any, who controls the Fund within the meaning of Section
15 of the 1933 Act (collectively, the “Indemnified Parties” for purposes of this Section 7.1)
against any and all losses, claims, damages, liabilities (including amounts paid in settlement with
the written consent of the
D-18
Company, which consent will not be unreasonably withheld) or litigation (including legal and
other expenses), to which the Indemnified Parties may become subject under any statute, regulation,
at common law or otherwise, insofar as such losses, claims, damages, liabilities or expenses (or
actions in respect thereof) or settlements are related to the sale or acquisition of the Fund’s
shares or the Contracts and:
(i) arise out of or are based upon any untrue statements or alleged untrue
statements of any material fact contained in the registration statement or prospectus for the
Contracts or contained in the Contracts or sales literature for the Contracts (or any amendment or
supplement to any of the foregoing), or arise out of or are based upon the omission or the alleged
omission to state therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, provided that this agreement to indemnify shall not apply as to
any Indemnified Party if such statement or omission or such alleged statement or omission was made
in reliance upon and in conformity with information furnished to the Company by or on behalf of the
Fund for use in the registration statement or prospectus for the Contracts or in the Contracts or
sales literature (or any amendment or supplement) or otherwise for use in connection with the sale
of the Contracts or Fund shares; or
(ii) arise out of or as a result of statements or representations (other than
statements or representations contained in the registration statement, Prospectus or sales
literature of the Fund not supplied by the Company, or persons under their control) or wrongful
conduct of the Company or persons under their control, with respect to the sale or distribution of
the Contracts or Fund Shares; or
(iii) arise out of any untrue statement or alleged untrue statement of a material
fact contained in the registration statement, Prospectus, or sales literature of the Fund or any
amendment thereof or supplement thereto or the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein not
misleading if such a statement or omission was made in reliance upon information furnished to the
Fund by or on behalf of the Company; or
(iv) arise as a result of any failure by the Company to provide the services and
furnish the materials under the terms of this Agreement; or
D-19
(v) arise out of or result from any material breach of any representation and/or
warranty made by the Company in this Agreement or arise out of or result from any other material
breach of this Agreement by the Company, as limited by and in accordance with the provisions of
Sections 7.1(b) and 7.1(c) hereof.
(b) The Company shall not be liable under this indemnification provision with
respect to any losses, claims, damages, liabilities or litigation incurred or assessed against an
Indemnified Party as such may arise from such Indemnified Party’s willful misfeasance, bad faith,
or gross negligence in the performance of such Indemnified Party’s duties or by reason of such
Indemnified Party’s reckless disregard of obligations or duties under this Agreement or to the
Fund, whichever is applicable.
(c) The Company shall not be liable under this indemnification provision with
respect to any claim made against an Indemnified Party unless such Indemnified Party shall have
notified the Company in writing within a reasonable time after the summons or other first legal
process giving information of the nature of the claim shall have been served upon such Indemnified
Party (or after such Indemnified Party shall have received notice of such service on any designated
agent), but failure to notify the Company of any such claim shall not relieve the Company from any
liability which it may have to the Indemnified Party against whom such action is brought otherwise
than on account of this indemnification provision. In case any such action is brought against the
Indemnified Parties, the Company shall be entitled to participate, at its own expense, in the
defense of such action. The Company also shall be entitled to assume the defense thereof, with
counsel satisfactory to the party named in the action. After notice from the Company to such party
of the Company’s election to assume the defense thereof, the Indemnified Party shall bear the fees
and expenses of any additional counsel retained by it, and the Company will not be liable to such
party under this Agreement for any legal or other expenses subsequently incurred by such party
independently in connection with the defense thereof other than reasonable costs of investigation.
D-20
(d) The Indemnified Parties will promptly notify the Company of the commencement of
any litigation or proceedings against them in connection with the issuance or sale of the Fund
Shares or the Contracts or the operations of the Fund.
7.2 Indemnification by the Fund and the Distributor
(a) The Fund and the Distributor agree to indemnify and hold harmless the Company
and its directors and officers and each person, if any, who controls the Company within the meaning
of Section 15 of the 1933 Act (collectively, the “Indemnified Parties” for purposes of this Section
7.2) against any and all losses, claims, damages, liabilities (including amounts paid in settlement
with the written consent of the Fund, which consent shall not be unreasonably withheld) or
litigation (including legal and other expenses) to which the Indemnified Parties may become subject
under any statute, at common law or otherwise, insofar as such losses, claims, damages, liabilities
or expenses (or actions in respect thereof) or settlements are related to the sale or acquisition
of the Fund’s shares or the Contracts and:
(i) arise out of or are based upon any untrue statement or alleged untrue statement
of any material fact contained in the registration statement or Prospectus or sales literature of
the Fund (or any amendment or supplement to any of the foregoing), or arise out of or are based
upon the omission or the alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, provided that this agreement to
indemnify shall not apply as to any Indemnified Party if such statement or omission or such alleged
statement or omission was made in reliance upon and in conformity with information furnished to the
Distributor or Fund by or on behalf of the Company for use in the registration statement or
Prospectus for the Fund or in sales literature (or any amendment or supplement) or otherwise for
use in connection with the sale of the Contracts or Fund shares; or
(ii) arise out of or as a result of statements or representations (other than
statements or representations contained in the registration statement, prospectus or sales
literature for the
D-21
Contracts not supplied by the Distributor or Fund or persons under its control) or wrongful
conduct of the Fund or the Distributor or persons under their control, with respect to the sale or
distribution of the Contracts or Fund shares; or
(iii) arise out of any untrue statement or alleged untrue statement of a material
fact contained in a registration statement, prospectus or sales literature covering the Contracts,
or any amendment thereof or supplement thereto, or the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statement or
statements therein not misleading, if such statement or omission was made in reliance upon
information furnished to the Company by or on behalf of the Fund; or
(iv) arise as a result of any failure by the Fund to provide the services and
furnish the materials under the terms of this Agreement (including a failure, whether unintentional
or in good faith or otherwise, to comply with the diversification requirements specified in Article
II of this Agreement); or
(v) arise out of or result from any material breach of any representation and/or
warranty made by the Fund or the Distributor in this Agreement or arise out of or result from any
other material breach of this Agreement by the Fund or the Distributor; as limited by and in
accordance with the provisions of Sections 7.2(b) and 7.2(c) hereof.
(vi) arise out a Fund’s failure to correct in a timely manner any incorrect
calculation and/or reporting of the daily net asset value, distribution rate or capital gain
distribution rate of a Portfolio; provided, however, that Fund shall have no obligation to
indemnify and hold harmless the Indemnified Parties if the incorrect calculation or reporting was
the result of incorrect information furnished by or on behalf of the Company or Distributor or
otherwise as a result of or relating to the Company’s or Distributor’s negligence or breach of this
Agreement.
D-22
(b) The Fund or the Distributor shall not be liable under this indemnification provision
with respect to any losses, claims, damages, liabilities or litigation to which an Indemnified
Party would otherwise be subject by reason of such Indemnified Party’s willful misfeasance, bad
faith, or gross negligence in the performance of such Indemnified Party’s duties or by reason of
such Indemnified Party’s reckless disregard of obligations and duties under this Agreement or to
the Company or Account, whichever is applicable.
(c) The Fund and the Distributor shall not be liable under this indemnification
provision with respect to any claim made against an Indemnified Party unless such Indemnified Party
shall have notified the Fund and the Distributor in writing within a reasonable time after the
summons or other first legal process giving information of the nature of the claim shall have been
served upon such Indemnified Party (or after such Indemnified Party shall have received notice of
such service on any designated agent), but failure to notify the Fund and the Distributor of any
such claim shall not relieve the Fund and the Distributor from any liability which they may have to
the Indemnified Party against whom such action is brought otherwise than on account of this
indemnification provision. In case any such action is brought against the Indemnified Parties, the
Fund and the Distributor will be entitled to participate, at their own expense, in the defense
thereof. The Fund and the Distributor also shall be entitled to assume the defense thereof with
counsel satisfactory to the party named in the action. After notice from the Fund and the
Distributor to such party of the Fund’s and the Distributor’s election to assume the defense
thereof, the Indemnified Party shall bear the fees and expenses of any additional counsel retained
by it, and the Fund and the Distributor will not be liable to such party under this Agreement for
any legal or other expenses subsequently incurred by such party independently in connection with
the defense thereof other than reasonable costs of investigation.
(d) The Company agrees promptly to notify the Fund and the Distributor of the
commencement of any litigation or proceedings against it or any of its officers or directors in
connection with the issuance or sale of the Contracts or the operation of the Account.
D-23
(e) Fund shall not be liable for any consequential, incidental, special or indirect
damages resulting to Company of Distributor.
ARTICLE VIII.
Applicable Law
8.1 This Agreement shall be construed and the provisions hereof interpreted under
and in accordance with the laws of New York.
8.2 This Agreement shall be subject to the provisions of the federal securities
laws, and the rules, regulations and rulings thereunder, including such exemptions from those
statutes, rules and regulations as the SEC may grant (including, but not limited to, the Mixed and
Shared Funding Exemptive Order) and the terms hereof shall be interpreted and construed in
accordance therewith.
ARTICLE IX.
Termination
Termination
9.1 This Agreement shall terminate:
(a) at the option of any party upon one-year advance written notice to the other
parties unless otherwise agreed in a separate written agreement among the parties; or
(b) at the option of the Company if shares of the Portfolios delineated in Schedule
B are not reasonably available to meet the requirements of the Contracts as determined by the
Company; or
(c) at the option of the Fund upon institution of formal proceedings against the
Company by the NASD, the SEC, the insurance commission of any state or any other regulatory body
regarding the Company’s duties under this Agreement or related to the sale of the Contracts, the
administration of the Contracts, the operation of an Account, or the purchase of Fund shares; or
(d) at the option of the Company upon institution of formal proceedings against the
Fund by the NASD, the SEC, or any state securities or insurance department or any other regulatory
body; or
(e) at the option of the Company or the Fund upon receipt of any necessary
regulatory approvals and/or the vote of the Contract owners having an interest in the Account (or
any subaccount) to
D-24
substitute the shares of another investment company for the corresponding Portfolio shares of
the Fund in accordance with the terms of the Contracts for which those Portfolio shares had been
selected to serve as the underlying investment media. The Company will give thirty (30) days’
prior written notice to the Fund of the date of any proposed vote or other action taken to replace
the Fund’s shares; or
(f) at the option of the Company or the Fund upon a determination by a majority of
the Fund Board, or a majority of the disinterested Fund Board members, that an irreconcilable
material conflict exists among the interests of (i) all Contract owners of Contracts of all
separate accounts, or (ii) the interests of the Participating Insurance Company investing in the
Fund as delineated in Article VI of this Agreement; or
(g) at the option of the Company if the Fund ceases to qualify as a Regulated
Investment Company under Subchapter M of the Code, or under any successor or similar provision, or
if the Company reasonably believe that the Fund may fail to so qualify; or
(h) at the option of the Company if the Fund fails to meet the diversification
requirements specified in Article II hereof; or
(i) at the option of any party to this Agreement, upon another party’s material
breach of any provision of this Agreement; or
(j) at the option of the Company, if the Company determines in its sole judgment
exercised in good faith, that either the Fund or the Distributor has suffered a material adverse
change in its business, operations or financial condition since the date of this Agreement or is
the subject of material adverse publicity which is likely to have a material adverse impact upon
the business and operations of the Company; or
(k) at the option of the Fund or the Distributor, if the Fund or the Distributor
respectively, shall determine in its sole judgment exercised in good faith, that the Company has
suffered a material adverse change in its business, operations or financial condition since the
date of this Agreement or is the
D-25
subject of material adverse publicity which is likely to have a material adverse impact upon
the business and operations of the Fund or the Distributor, or
(l) at the option of the Fund, in the event any of the Contracts are not issued or
sold in accordance with applicable federal and/or state law. Termination shall be effective
immediately upon such occurrence without notice.
9.2 Notice Requirement
(a) In the event that any termination of this Agreement is based upon the provisions
of Article VI, such prior written notice shall be given in advance of the effective date of
termination as required by such provisions.
(b) In the event that any termination of this Agreement is based upon the provisions
of Sections 9.1(b) — (d) or 9.1(g) — (i), prompt written notice of the election to terminate this
Agreement for cause shall be furnished by the party terminating the Agreement to the
non-terminating parties, with said termination to be effective upon receipt of such notice by the
non-terminating parties.
(c) In the event that any termination of this Agreement is based upon the provisions
of Sections 9.1(i) or 9.1(k), prior written notice of the election to terminate this Agreement for
cause shall be furnished by the party terminating this Agreement to the non-terminating parties.
Such prior written notice shall be given by the party terminating this Agreement to the
non-terminating parties at least thirty (30) days before the effective date of termination.
9.3 No Reason Required for Termination. It is understood and agreed that
the right to terminate this Agreement pursuant to Section 9.1 (a) may be exercised for any reason
or for no reason.
9.4 Effect of Termination
(a) Notwithstanding any termination pursuant to Section 9.1 of this Agreement, the
Fund may, at its option, or in the event of termination of this Agreement by the Fund or the
Distributor pursuant to Section 9.1 (a) of this Agreement, the Company may require the Fund and the
Distributor to continue to make available additional shares of the Fund for so long after the
termination of this Agreement as the
D-26
Fund or the Company, if the Company so requires, desires pursuant to the terms and conditions
of this Agreement as provided in paragraph (b) below for all Contracts in effect on the effective
date of termination of this Agreement (hereinafter referred to as “Existing Contracts”).
Specifically, without limitation, if the Fund so elects to make available additional shares of the
Fund, the owners of the Existing Contracts shall be permitted to reallocate investments in the
Fund, redeem investments in the Fund and/or invest in the Fund upon the making of additional
purchase payments under the Existing Contracts. The parties agree that this Section 9.4 shall not
apply to any terminations under Article VI and the effect of such Article VI terminations shall be
governed by Article VI of this Agreement.
(b) In the event of a termination pursuant to Section 9.1 of this Agreement, the
Fund shall promptly notify the Company whether the Fund will continue to make available shares of
the Fund after such termination, except that, with respect to a termination by the Fund or the
Distributor pursuant to Section 9.1 (a) of this Agreement, the Company shall promptly notify the
Fund whether it wishes the Fund to continue to make available additional shares of the Fund. If
shares of the Fund continue to be made available after such termination, the provisions of this
Agreement shall remain in effect except for Section 9.1(a) and thereafter the Fund or the Company
may terminate the Agreement, as so continued pursuant to this Section 9.4 upon written notice to
the other party, such notice to be for a period that is reasonable under the circumstances.
(c) In the event of termination purusant to Section 9.1(l), or such laws preclude
the use of such shares as the underlying investment medium for the Contracts issued or to be issued
by the Company, and if through no fault of the Company, the need for substitution of Fund shares
for the shares of another “registered investment company” arises out of this event, the expenses
of obtaining such an order shall be reimbursed by the Fund. The Fund and the Distributor shall
cooperate fully with the Company in connection with such application.
9.5 Surviving Provisions. Each party’s obligations under Section 2.11 and
Article VII will survive and will not be affected by any termination of this Agreement. In
addition, with respect to
D-27
Existing Contracts, all provisions of this Agreement also will survive and not be affected by
any termination of this Agreement.
ARTICLE X.
Notices
Any notice shall be sufficiently given when sent by registered or certified mail to the other
party at the address of such party set forth below or at such other address as such party may from
time to time specify in writing to the other party.
If to the Fund:
Xxxx Xxxxx Partners Variable Series Fund Inc
000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
If to the Company:
Pacific Life Insurance Company
000 Xxxxxxx Xxxxxx Xxxxx
Xxxxxxx Xxxxx XX 00000
ATTN: General Counsel
000 Xxxxxxx Xxxxxx Xxxxx
Xxxxxxx Xxxxx XX 00000
ATTN: General Counsel
If to the Distributor:
Xxxx Xxxxx Investor Services LLC
000 Xxxxx Xxxxxxxx Xxxxx
Xxxxxxxx, XX 00000
ATTN: Xxxx Xxxxxx
000 Xxxxx Xxxxxxxx Xxxxx
Xxxxxxxx, XX 00000
ATTN: Xxxx Xxxxxx
ARTICLE XI.
Miscellaneous
11.1 The captions in this Agreement are included for convenience of reference only
and in no way define or delineate any of the provisions hereof or otherwise affect their
construction or effect.
11.2 This Agreement may be executed simultaneously in two or more counterparts, each
of which taken together shall constitute one and the same instrument.
D-28
11.3 If any provision of this Agreement shall be held or made invalid by a court
decision, statute, rule or otherwise, the remainder of the Agreement shall not be affected thereby.
11.4 Each party hereto shall cooperate with each other party and all appropriate
governmental authorities (including without limitation the SEC, the NASD and state insurance
regulators) and shall permit such authorities reasonable access to its books and records in
connection with any investigation or inquiry relating to this Agreement or the transactions
contemplated hereby.
11.5 The rights, remedies and obligations contained in this Agreement are cumulative
and are in addition to any and all rights, remedies and obligations, at law or in equity, which the
parties hereto are entitled to under state and federal laws.
11.6 Each party will keep confidential any information acquired as a result of this
Agreement regarding the business and affairs of the other parties to this Agreement and their
affiliates.
11.7 Subject to the requirements of legal process and regulatory authority, each
party hereto shall treat as confidential the names and address of owners of the Contracts and all
information reasonably identified as confidential in writing by any other party hereto and, except
as permitted by this Agreement in order to carry out the specified purposes specified herein, shall
not disclose, disseminate or utilize such names and addresses and other confidential information
until such time as it may come into public domain without express written consent of the affected
party. In addition, each party shall adopt policies and procedures that address administrative,
technical and physical safeguards for the protection of such customer records.
11.8 Each party will comply with all applicable laws and regulations aimed at
preventing, detecting, and reporting money laundering and suspicious transactions. To the extent
required by applicable regulation and generally accepted industry practices, each party shall take
all necessary and appropriate steps to: (i) obtain, verify, and retain information with regard to
contract owner identification, and (ii) maintain records of all contract owner transactions. The
Company will (but only to the extent consistent with applicable law) take all steps necessary and
appropriate to provide the Fund with any
D-29
requested information about Contract owners and their accounts in the event that the Fund
shall request such information due to an inquiry or investigation by any law enforcement,
regulatory, or administrative authority. To the extent permitted by applicable law and
regulations, the Company will notify the Fund of any concerns that the Company may have in
connection with any Contract owners in the context of relevant anti-money laundering laws or
regulations.
11.9 The Fund agrees to consult with the Company concerning whether any Portfolio of
the Fund qualifies to provide a foreign tax credit pursuant to Section 853 of the Code.
D-30
IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed in its
name and on its behalf by its duly authorized representative and its seal to be hereunder affixed
hereto as of the date specified below.
Company:
| PACIFIC LIFE INSURANCE COMPANY By its authorized officer: |
||||
| By: | ||||
| Xxxxx X. Xxxx |
||||
| Title: | Executive Vice President and Chief Financial Officer |
|||
| Date: | April 3, 2007 | |||
Fund:
| XXXX XXXXX PARTNERS VARIABLE AGGRESSIVE GROWTH PORTFOLIO, By its authorized officer: |
||||
| By: | ||||
| Name: | ||||
| Title: | ||||
| Date: | ||||
| XXXX XXXXX PARTNERS VARIABLE MID CAP CORE PORTFOLIO, By its authorized officer: |
||||
| By: | ||||
| Name: | ||||
D-31
| Title: | ||||
| Date: | ||||
Distributor:
| XXXX XXXXX INVESTOR SERVICES, LLC By its authorized officer: |
||||
| By: | /s/Xxxx Xxxxxx | |||
| Name: | Xxxx Xxxxxx | |||
| Title: | ||||
| Date: | ||||
D-32
SCHEDULE A
SEPARATE ACCOUNTS FUNDING VARIABLE CONTRACTS
SEPARATE ACCOUNTS FUNDING VARIABLE CONTRACTS
| Name of Separate Account and | Policies/Contracts Funded | |
| Date Established by Board of Directors | By Separate Account | |
Pacific Select Exec Separate Account |
Pacific Select Exec |
|
May 12, 1998 |
Pacific Select Exec II |
|
Pacific Select Exec III |
||
Pacific Select Choice |
||
Pacific Select Estate Preserver |
||
Pacific Select Estate Preserver II |
||
Pacific Select Estate Preserver III |
||
Pacific Select Estate Preserver IV |
||
Pacific Select Estate Preserver V |
||
Pacific Select Estate Maximizer |
||
Pacific Select Performer 500 |
||
M’s Versatile Product |
||
M’s Versatile Product-VI |
||
M’s Versatile Product-Survivorship |
||
Pacific Select Accumulator |
||
Pacific COLI Separate Account |
Custom COLI |
|
July 17, 1992 |
Custom COLI Rider |
|
Pacific COLI II Separate Account |
Custom COLI II |
|
October 12, 1998 |
||
Pacific COLI III Separate Account |
Custom COLI III |
|
October 12, 1998 |
||
Diversified Fixed Investment Variable A Account |
Custom COLI Rider |
|
September 25, 1996 |
D-33
SCHEDULE B
FUND PORTFOLIOS
| Fund Name | Trust Name | CUSIP | ||
Xxxx Xxxxx Partners Variable Aggressive Growth |
Xxxx Xxxxx Partners Variable Equity Trust | TBD 4/27/07 | ||
Portfolio (Class II) |
||||
Xxxx Xxxxx Partners Variable Mid Cap Core Portfolio |
Xxxx Xxxxx Partners Variable Equity Trust | TBD 4/27/07 |
D-34
