Common use of Service Plan Payments Clause in Contracts

Service Plan Payments. (a) The Company has adopted a Service Plan pursuant to Rule 12b-1 under 1940 Act to enable the Trust Class Shares of each Fund to directly and indirectly bear certain expenses relating to the distribution of such Shares. Pursuant to such Service Plan, the Company shall be entitled to pay to financial intermediaries, plan fiduciaries, and investment professionals ("Service Providers") a shareholder servicing fee at the aggregate annual rate of up to 0.25% of each Fund's average daily net assets attributable to Trust Class Shares. The shareholder servicing fee is intended to compensate Service Providers for providing to shareholders or the underlying beneficial owners of Trust Class Shares: (a) personal support services; (b) distribution assistance and distribution support services; and (c) account maintenance services. In addition, insurance companies or their affiliates may be paid the shareholder servicing fee described in this Section 5 for providing similar services to variable annuity or variable life insurance contract holders ("Contract Holders") or their participants for which such insurance companies are not otherwise compensated by Contract Holders or participants. (b) The Distributor shall prepare and deliver written reports to the Board of Directors of the Company on a regular basis (at least quarterly) setting forth the payments made to Service Providers pursuant to the Service Plan, and the purposes for which such expenditures were made, as well as any supplemental reports as the Board of Directors of the Company may from time to time reasonably request.