Common use of Commission Chargeback Clause in Contracts

Commission Chargeback. In the event that a Contract for which a commission has been paid is returned to Pacific Equities Network or Pacific Mutual pursuant to the Free Look Right in the Contract, or a premium for which commission has been paid is refunded by Pacific Mutual, Pacific Equities Network will require reimbursement from General Agent and/or Selling Broker-Dealer as follows: If the amount to be deducted exceeds compensation otherwise due, Selling Broker- Dealer will promptly reimburse Pacific Equities Network before the next commission cycle or within 10 business days from the date of mailing of a written demand for reimbursement, whichever is later. Pacific Mutual and Pacific Equities Network reserve the right to terminate or amend this Revised Schedule B by providing written notification to the Broker- Dealer in accordance with Section VI.C of the Selling Agreement. This Schedule shall be effective as of: . ------------------------------------ PACIFIC EQUITIES NETWORK -------------------------------------------------- (Selling Broker-Dealer) By: By: --------------------------------- -------------------------------- (Signature) (Signature) Title: Title: ------------------------------ ------------------------------ Date: Date: ------------------------------ ------------------------------ PACIFIC MUTUAL LIFE INSURANCE COMPANY ------------------------------------ (General-Agent) By: By: --------------------------------- -------------------------------- Title: Title: ------------------------------ ------------------------------ Date: Date: ------------------------------ ------------------------------ ------------------------------------ ------------------------------------ (General Agent) (General -Agent) By: By: --------------------------------- --------------------------------

Commission Chargeback. In the event that a Contract policy (for which a commission has been paid) is lapsed or surrendered by the Policy Owner during the first six months, or is returned to SECURITY LIFE for refund of premium during the Free Look Period as described in the policy, SECURITY LIFE and ING AMERICA Equities shall require reimbursement from SELLING BROKER-DEALER equal to 100% of the commissions paid. If a premium payment for which a commission has been paid is returned to Pacific Equities Network refunded by SECURITY LIFE, a reimbursement of the commission paid on the amount refunded will be due from the SELLING BROKER-DEALER. Further, if a policy is surrendered or Pacific Mutual pursuant to has a death benefit reduction during the Free Look Right first three policy years, a commission chargeback applies. ------------------------------------------- ------------------------------------------- OPTION L OPTION M ------------------------------------------- ------------------------------------------- Premiums Received in PCA RCA & SCA PCA RCA & SCA ---------------------- --------------------- ------------------- ---------------------- -------------------- Months 12% 4% 30% 2% 1 - 6 ---------------------- --------------------- ------------------- ---------------------- -------------------- Months N/A N/A 30% 2% 7 - 12 ---------------------- --------------------- ------------------- ---------------------- -------------------- Months N/A N/A 14% 0.94% 13-24 ---------------------- --------------------- ------------------- ---------------------- -------------------- Months N/A N/A 4% 0.27% 25-36 ---------------------- --------------------- ------------------- ---------------------- -------------------- The reimbursement may be deducted by ING AMERICA EQUITIES from the Contractnext, or a premium for which any subsequent, commission has been paid is refunded by Pacific Mutual, Pacific Equities Network will require reimbursement from General Agent and/or Selling Brokerpayment to SELLING BROKER-Dealer as follows: DEALER. If the amount to be deducted reimbursed exceeds compensation otherwise due, Selling Broker- Dealer will SELLING BROKER-DEALER shall promptly reimburse Pacific Equities Network ING AMERICA EQUITIES before the next commission cycle or within 10 business days from the date of mailing of a written demand for reimbursement, whichever is later. Pacific Mutual and Pacific Equities Network reserve the right to terminate or amend this Revised Schedule B by providing written notification to the Broker- Dealer in accordance with Section VI.C of the Selling Agreement. This Schedule shall be effective as of: . ------------------------------------ PACIFIC EQUITIES NETWORK -------------------------------------------------- (Selling Broker-Dealer) By: By: --------------------------------- -------------------------------- (Signature) (Signature) Title: Title: ------------------------------ ------------------------------ Date: Date: ------------------------------ ------------------------------ PACIFIC MUTUAL LIFE INSURANCE COMPANY ------------------------------------ (General-Agent) By: By: --------------------------------- -------------------------------- Title: Title: ------------------------------ ------------------------------ Date: Date: ------------------------------ ------------------------------ ------------------------------------ ------------------------------------ (General Agent) (General -Agent) By: By: --------------------------------- --------------------------------cycle.

Commission Chargeback. In the event that a Contract policy for which a commission has been paid is lapsed or surrendered by the Policy Owner or has a reduction in the Stated Death Benefit during the first three years or is returned to Pacific Equities Network or Pacific Mutual pursuant to ING Security Life for refund of premium during the Free Look Right Period as described in the Contractpolicy, or ING Security Life and ING America Equities shall require reimbursement of from Selling Broker-Dealer as Schedule SB-1 (ver 2-25-00) Page 2 of 3 shown below. ---------------------- ----------------------------------------- POLICY OR SEGMENT YEAR COMMISSION CHARGEBACK ---------------------- ----------------------------------------- ---------------------- ----------------------------------------- 1 5% of first year premiums up to target ---------------------- ----------------------------------------- ---------------------- ----------------------------------------- 2 2.5% of first year premiums up to target ---------------------- ----------------------------------------- ---------------------- ----------------------------------------- 3 1.25% of first year premiums up to target ---------------------- ----------------------------------------- ---------------------- ----------------------------------------- 4+ 0% ---------------------- ----------------------------------------- If a premium payment for which a commission has been paid is refunded by Pacific MutualING Security Life, Pacific Equities Network a reimbursement of the commission paid on the amount refunded will require reimbursement be due from General Agent and/or the Selling Broker-Dealer as follows: Dealer. The reimbursement may be deducted by ING America Equities from the next, or any subsequent, commission payment to Selling Broker-Dealer. If the amount to be deducted reimbursed exceeds compensation otherwise due, Selling Broker- Broker-Dealer will shall promptly reimburse Pacific ING America Equities Network before the next commission cycle or within 10 business days from the date of mailing of a written demand for reimbursement, whichever is later. Pacific Mutual and Pacific Equities Network reserve the right to terminate or amend this Revised Schedule B by providing written notification to the Broker- Dealer in accordance with Section VI.C of the Selling Agreement. This Schedule shall be effective as of: . ------------------------------------ PACIFIC EQUITIES NETWORK -------------------------------------------------- (Selling Broker-Dealer) By: By: --------------------------------- -------------------------------- (Signature) (Signature) Title: Title: ------------------------------ ------------------------------ Date: Date: ------------------------------ ------------------------------ PACIFIC MUTUAL LIFE INSURANCE COMPANY ------------------------------------ (General-Agent) By: By: --------------------------------- -------------------------------- Title: Title: ------------------------------ ------------------------------ Date: Date: ------------------------------ ------------------------------ ------------------------------------ ------------------------------------ (General Agent) (General -Agent) By: By: --------------------------------- --------------------------------cycle.

Commission Chargeback. In the event that a Contract policy for which a commission has been paid is lapsed or surrendered by the Policy Owner during the first policy year, or is returned to Pacific Equities Network PEN or Pacific Mutual pursuant to PM for refund of Premium within the Free Look Right in later of 10 days after the Contractpurchaser receives it or 45 days after the application for the policy is completed, or a premium for which commission has been paid is refunded by Pacific Mutual, Pacific Equities Network PM PEN will require reimbursement from General Agent and/or Selling Broker-Dealer as follows: . 100% of the commission if the event that causes the Chargeback occurs within six months of the policy issue date; or . 50% of the commission if the event that causes the Chargeback occurs during the seventh through twelfth months after the policy issue date. If the amount to be deducted exceeds compensation otherwise due, General Agent and/or Selling Broker- Broker-Dealer will promptly shall reimburse Pacific Equities Network PEN before the next commission cycle or within 10 business days from the date of mailing of a written demand for reimbursement, whichever is later. Pacific Mutual PM reserves the right to terminate or amend this Schedule B by providing written notification to the Broker-Dealer. With the exception of the terms amended by this amendment, all other terms and Pacific Equities Network conditions of the original Selling Agreement remain in full force and effect. PM and PEN reserve the right to terminate or amend this Revised Schedule B schedule by providing written notification to the Broker- Dealer other parties in accordance with Section VI.C VI.G of the Selling Agreement. This Schedule shall be effective as of: . ------------------------------------ PACIFIC EQUITIES NETWORK -------------------------------------------------- Pacific Equities Network ____________________________________ (Selling Broker-Dealer) By: /s/XXXXXX X. XXXXXXXX By: --------------------------------- -------------------------------- ___________________________ (Signature) (Signature) Title: President & C.E.O. Title: ------------------------------ ------------------------------ ___________________________ Date: ______________________________ Date: ------------------------------ ------------------------------ PACIFIC MUTUAL LIFE INSURANCE COMPANY ------------------------------------ ___________________________ Pacific Mutual Life Insurance Company ____________________________________ (General-Selling General Agent) By: ______________________________ By: --------------------------------- -------------------------------- ___________________________ (Signature) (Signature) Title: ______________________________ Title: ------------------------------ ------------------------------ ___________________________ Date: ______________________________ Date: ------------------------------ ------------------------------ ------------------------------------ ------------------------------------ ___________________________ _______________________________________ ____________________________________ (General Agent) (General -AgentAgent) By: ______________________________ By: --------------------------------- --------------------------------___________________________ (Signature) (Signature) Title: ______________________________ Title: ___________________________ Date: ______________________________ Date: ___________________________ _______________________________________ ____________________________________ (General Agent) (General Agent) By: ______________________________ By: ___________________________ (Signature) (Signature) Title: ______________________________ Title: ___________________________ Date: ______________________________ Date: ___________________________

Commission Chargeback. In the event that a Contract policy for which a commission has been paid is lapsed or surrendered by the Contract Owner during the first two policy years, or is returned to Pacific Equities Network PEN or Pacific Mutual pursuant to PM for refund of premium within the Free Look Right in later of 10 days after the Contractpurchaser receives it or 45 days after the application for the policy is completed, or a premium for which commission has been paid is refunded by Pacific MutualPM, Pacific Equities Network will PEN shall require reimbursement from General Agent and/or Selling Broker-/Dealer as follows: . 100% of the commission if the lapse, surrender, return or refund occurs within six months of the policy issue date; . 50% of the commission if the lapse, surrender, return or refund occurs during the seventh through twelfth months after the policy issue date; . 25% of the commission if the lapse, surrender, return or refund occurs during the thirteenth through twenty-fourth months after the policy issue date. If the amount to be deducted exceeds compensation otherwise due, General Agent and/or Selling Broker- Broker/Dealer will promptly shall reimburse Pacific Equities Network PEN before the next commission cycle or within 10 business days from the date of mailing of a written demand for reimbursement, whichever is later. Pacific Mutual PM and Pacific Equities Network PEN reserve the right to terminate or amend this Revised Schedule B schedule by providing written notification to the Broker- Dealer other parties in accordance with Section VI.C VI.G of the Selling Agreement. This Schedule shall be effective as of: of ______________________. ------------------------------------ PACIFIC EQUITIES NETWORK -------------------------------------------------- __________________________________ (Selling Broker-/Dealer) By: /s/ XXXXXX X XXXXXXXX By: __________________________________ (Signature) (Signature) Title: President & C.E.O. Title: -------------------------------- Date: Date: --------------------------------- -------------------------------- PACIFIC MUTUAL LIFE INSURANCE COMPANY ------------------------------------------- (Selling General Agent) By: By: --------------------------------- -------------------------------- ---------------------------------- ---------------------------------- (Signature) (Signature) Title: Title: ------------------------------ ------------------------------ -------------------------------- ------------------------------- Date: Date: ------------------------------ ------------------------------ PACIFIC MUTUAL LIFE INSURANCE COMPANY ------------------------------------ -------------------------------- -------------------------------- -------------------------------------- -------------------------------------- (General-General Agent) (General Agent) By: By: --------------------------------- -------------------------------- ---------------------------------- ---------------------------------- (Signature) (Signature) Title: Title: ------------------------------ ------------------------------ -------------------------------- ------------------------------- Date: Date: ------------------------------ ------------------------------ ------------------------------------ ------------------------------------ -------------------------------- -------------------------------- -------------------------------------- -------------------------------------- (General Agent) (General -AgentAgent) By: By: --------------------------------- ---------------------------------- ---------------------------------- (Signature) (Signature) Title: Title: -------------------------------- ------------------------------- Date: Date: -------------------------------- -------------------------------- -------------------------------------- -------------------------------------- (General Agent) (General Agent) By: By: ---------------------------------- ---------------------------------- (Signature) (Signature) Title: Title: -------------------------------- ------------------------------- Date: Date: -------------------------------- -------------------------------- -------------------------------------- -------------------------------------- (General Agent) (General Agent) By: By: ---------------------------------- ---------------------------------- (Signature) (Signature) Title: Title: -------------------------------- ------------------------------- Date: Date: -------------------------------- -------------------------------- -------------------------------------- -------------------------------------- (General Agent) (General Agent) By: By: ---------------------------------- ---------------------------------- (Signature) (Signature) Title: Title: -------------------------------- ------------------------------- Date: Date: -------------------------------- --------------------------------