Administrative Services Agreement Franklin Templeton Services, LLC Pacific Life & Annuity Company
THIS AGREEMENT, by and between Franklin Xxxxxxxxx Services, LLC (the “Fund Administrator”), and
Pacific Life & Annuity Company (the “Company”), concerning certain administrative services with
respect to each series (“Fund” or “Funds”) of Franklin Xxxxxxxxx Variable Insurance Products Trust
(the “Trust”), which Funds are specified in the Participation Agreement, as may be amended from
time to time, among the Company, the Trust, and Franklin Xxxxxxxxx Distributors, Inc. (the
“Underwriter”), among others, dated May 1, 2008, (the “Participation Agreement”).
1. Administrative Services. Administrative services for the Company’s Separate Accounts
(the “Account” or “Accounts”) which invest in the Funds pursuant to the Participation Agreement,
and administrative services for purchasers of variable life and annuity contracts (the “Contracts”)
issued by the Company through the Accounts, are and shall be the responsibility of the Company.
Administrative services with respect to the Funds in which the Accounts invest, and for purchasers
of shares of the Funds, are and shall be the responsibility of the Fund Administrator or its
affiliates. The Company has agreed to assist the Fund Administrator, as the Fund Administrator may
request from time to time, with the provision of administrative services (“Administrative
Services”) to the Funds, on a sub-administration basis, as they may relate to the investment in the
Funds by the Accounts. It is anticipated that the Administrative Services may include, but may not
be limited to, the services listed on Schedule A.
2. Administrative Expense Payments. The Fund Administrator recognizes the Company, on
behalf of the Accounts, as the shareholder of shares of the Funds purchased under the Participation
Agreement on behalf of the Accounts. The Fund Administrator further recognizes that it will derive
a substantial administrative convenience by virtue of having the Company be the shareholder of
record of shares of the Funds purchased under the Participation Agreement, rather than multiple
shareholders having record ownership of such shares. The Fund Administrator recognizes that the
Company will provide administrative services necessary to facilitate investment in the Funds.
In consideration of the Administrative Services provided by the Company and the administrative
convenience resulting to the Fund Administrator described above, the Fund Administrator agrees to
pay the Company a fee as set forth in Schedule B.
3. Computation of Administrative Expense Payments. As soon as practicable after the end of
each quarter, the Company will send the Fund Administrator, at the address indicated in this
Paragraph 3 and in the manner set forth below, a statement of the average daily net assets for the
preceding quarter, of shares of the Fund as to which the fee stated in Schedule B is to be calculated. The Fund
Administrator will calculate and pay the Company its fee within thirty (30) days after the end of
the three-month periods ending in January, April, July and October. Such payment will be by wire
transfer unless the amount thereof is less than $500.
Wire transfers will be sent to the bank
account and in the manner specified by the Company. Such wire transfer will be separate from wire
transfers of redemption proceeds and distributions. Amounts less than $500 shall be paid by check
or by another method acceptable to both parties.
For purposes of this Paragraph 3, the average daily net asset value of the shares of a Fund will be
based on the net assets reported by the Trust on behalf of each Fund to the Company. No
adjustments will be made to such net assets to correct errors in the net asset value so reported
for any day unless such error is corrected and the corrected net asset value per share is reported
to the Company before p.m. Eastern time on the first Business Day after the day to which the error
relates. “Business Day” will mean any day on which the New York Stock Exchange is open for trading
and on which the Fund calculates its net asset value pursuant to the rules of the Securities and
Exchange Commission.
For purposes of this Paragraph 3, the address shall be Corporate Accounting, Franklin Resources,
Xxx Xxxxxxxx Xxxxxxx, Xxx Xxxxx, Xxxxxxxxxx 00000; Attention: Manager.
4. Confidentiality of Payment Rate. The Company acknowledges that the rate and amount of
payments to be made to the Company under this Agreement are proprietary and confidential
information of the Fund Administrator and its affiliates, and that disclosure of this information
to third parties may cause damage to Fund Administrator or its affiliates. The Company agrees to
take any and all reasonable actions to limit disclosure of this information to only those of its
employees, officers, consultants and agents who need the information in order to perform their
duties, and to notify such persons of the terms of this paragraph. In the event any other party
seeks to compel disclosure of confidential information through judicial or administrative process,
then the Company shall promptly give the Fund Administrator written notice of such demand and, if
requested by the Fund Administrator, shall cooperate in the Fund Administrator’s efforts to
challenge or limit any such disclosure. Violation of the confidentiality provision shall be
grounds for immediate termination of the Agreement by the Fund Administrator in its sole
discretion. Nothing in this Agreement shall prevent the Company from disclosing the existence of
this Agreement in the Contracts’ prospectuses or elsewhere.
5. Nature of Payments. The parties to this Agreement recognize and agree that the Fund
Administrator’s payments to the Company relate to Administrative Services only and do not constitute payment in any manner for
investment advisory services, for costs of distribution of Contracts or of shares of the Fund, or
for services that the Company is otherwise required to perform, and that these payments are not
otherwise related to investment advisory or distribution services or expenses. The amount of the
payments made by the Fund Administrator to the Company under this Agreement shall not be deemed to
be conclusive with respect to actual administrative expenses incurred by the Company or savings of
the Fund Administrator.
6. Notice. 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 in Schedule C of this Agreement or
at such other address as such party may from time to time specify in writing to the other party.
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The quarterly statements called for in Paragraph 3 above should be sent to the Fund Administrator
at the address specified in Paragraph 3.
7. Termination. This Agreement may be terminated upon thirty (30) days’ written notice
from one party to the other party.
8. Representation. The Company represents and agrees that it will maintain and preserve
all records as required by law to be maintained and preserved in connection with providing the
Administrative Services, and will otherwise comply with all laws, rules and regulations applicable
to Administrative Services.
9. Amendment. This Agreement may be amended only upon mutual agreement of the parties
hereto in writing.
10. Assignment. This Agreement shall not be assigned by either party without the prior
written consent of the other party, which consent shall not be unreasonably withheld or delayed;
provided, however, that such limitation shall not apply should the Fund Administrator cease to be
the fund administrator for the Trust and the successor fund administrator for the Trust is willing
to assume Fund Administrator’s responsibilities hereunder.
11. Counterparts. This Agreement may be executed in counterparts, each of which will be
deemed an original but all of which will together constitute one and the same instrument.
12. Entire Agreement. This Agreement, together with the attached Schedules, contains the
entire agreement among the parties with respect to the matters dealt with herein, and supersedes
any prior or inconsistent agreements, documents, understandings or arrangements among the parties
with respect to the subject matter of this Agreement.
13. Indemnification. This Agreement will be subject to the indemnification provisions of
the Participation Agreement.
14. Arbitration. In the event of a dispute concerning any provision of this Agreement,
either party may require the dispute to be submitted to binding arbitration under the commercial
arbitration rules of the American Arbitration Association. Each party will pay its own costs and
expenses. Judgment upon any arbitration award may be entered by any court having jurisdiction.
This Agreement shall be interpreted in accordance with the laws of the state of California and
shall be subject to any applicable federal securities laws.
15. Trust Not a Party. The parties to this Agreement acknowledge and agree that the Trust
is not directly or indirectly a party to this Agreement. If, however, the Trust shall be so
deemed, the parties to this Agreement acknowledge and agree that any liabilities of the Trust
arising, directly or indirectly, under this Agreement will be satisfied out of the assets of the
Trust and that no trustee, officer, agent or holder of shares of beneficial interest of the Trust
or any Fund will be personally liable for such liabilities. No Fund of the Trust will be liable
for the obligations or liabilities of any other Fund.
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This Agreement is executed as of this 17th day of March, 2008.
| PACIFIC LIFE & ANNUITY COMPANY | ||||
| By: | ||||
| Name: | ||||
| Title: | Assistant Vice President | |||
| Attest: | ||||
| Corporate Secretary | ||||
| Franklin Xxxxxxxxx Services, LLC | ||||
| By: | ||||
| Name: | ||||
| Title: | Vice President | |||
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SCHEDULE A
Administrative Services
Maintenance of Books and Records
| • | Assist as necessary to maintain book entry records on behalf of the Funds regarding issuance to, transfer within (via net purchase orders) and redemption by the Accounts of Fund shares. |
| • | Maintain general ledgers regarding the Accounts’ holdings of Fund shares, coordinate and reconcile information, and coordinate maintenance of ledgers by financial institutions and other contract owner service providers. |
Communication with the Funds
| • | Serve as the designee of the Funds for receipt of purchase and redemption orders from the Account and to transmit such orders, and payment therefore, to the Funds. |
| • | Coordinate with the Funds’ agents respecting daily valuation of the Funds’ shares and the Accounts’ units. |
| • | Purchase Orders |
| - | Determine net amount available for investment in the Funds. |
||
| - | Deposit receipts at the Funds’ custodians (generally by wire transfer). | ||
| - | Notify the custodians of the estimated amount required to pay dividends or distributions. |
| • | Redemption Orders |
| - | Determine net amount required for redemptions by the Funds. |
||
| - | Notify the custodian and Funds of cash required to meet payments. |
| • | Purchase and redeem shares of the Funds on behalf of the Accounts at the then-current price in accordance with the terms of each Fund’s then current prospectus. |
| • | Assistance in enforcing procedures adopted on behalf of the Trust to reduce, discourage, or eliminate market timing transactions in a Fund’s shares in order to reduce or eliminate adverse effects on a Fund or its shareholders. |
Processing Distributions from the Funds
| • | Process ordinary dividends and capital gains. |
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| • | Reinvest the Funds’ distributions. |
Reports
| • | Periodic information reporting to the Funds, including, but not limited to, furnishing registration statements, prospectuses or private offering memorandum, statements of additional information, reports, solicitations for instructions, disclosure statements, sales or promotional materials and any other filings with the Securities and Exchange Commission with respect to the Accounts invested in the Funds, if necessary. |
| • | Periodic information reporting about the Funds to contract owners, including necessary delivery of the Funds’ prospectus and annual and semi-annual reports. |
Fund-related Contract Owner Services
| • | Maintain adequate fidelity bond or similar coverage for all Company officers, employees, investment advisors and other individuals or entities controlled by the Company who deal with the money and/or securities of the Funds. | |
| • | Provide general information with respect to Fund inquiries (not including information about performance or related to sales). | |
| • | Provide information regarding performance of the Funds and the subaccounts of the Accounts. | |
| • | Oversee and assist the solicitation, counting and voting or contract owner voting interests in the Funds pursuant to Fund proxy statements. |
Other Administrative Support
| • | Provide other administrative and legal compliance support for the Funds as mutually agreed upon by the Company and the Funds or the Fund Administrator. | |
| • | Relieve the Funds of other usual or incidental administrative services provided to individual contract owners. |
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Schedule B
Administrative Expense Payments
The Fund Administrator agrees to pay the Company a fee, computed daily and paid quarterly in
arrears, equal to an annual rate as set forth below, applied to the average daily net assets of the
shares of the Funds held in the subaccounts of the Accounts. The payment will be computed and paid
in the manner described more completely in the Agreement.
| Date of | ||||||||||
| beginning of | ||||||||||
| period for | ||||||||||
| Product Name/ | Fee | computation of | ||||||||
| # | Company Name | Securities Act No. | Funds of the Trust | Rate | fee | |||||
1.
|
Pacific Life & Annuity Company (PL&A) |
All Contracts Separate Account A of PL&A (811-09203) | Founding Funds Allocation Fund – Class IV | |||||||
2. |
||||||||||
3. |
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Schedule C
Addresses for Notices
If to the Company:
|
Pacific Life & Annuity Company | |
| 000 Xxxxxxx Xxxxxx Xxxxx | ||
| Xxxxxxx Xxxxx, Xxxxxxxxxx 00000 | ||
| Attention: General Counsel | ||
If to the Fund Administrator:
|
Franklin Xxxxxxxxx Services, LLC | |
| Xxx Xxxxxxxx Xxxxxxx, Xxxx. 000, 0xx Xxxxx | ||
| Xxx Xxxxx, Xxxxxxxxxx 00000 | ||
| Attention: | ||
With a copy to:
|
Franklin Xxxxxxxxx Investments | |
| One Franklin Parkway, Bldg. 000, 0xx Xxxxx |
||
| Xxx Xxxxx, Xxxxxxxxxx 00000 | ||
| Attention: General Counsel |
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