ADMINISTRATIVE SERVICES AGREEMENT
Pacific Life Insurance Company (“Pacific Life”) (the “Company”) and Xxxx Xxxxx Investor
Services, LLC, (“LMIS”) (the “Distributor”) mutually agree to the arrangements set forth in this
Administrative Services Agreement (the “Agreement”) dated April 3, 2007.
WHEREAS, the Distributor serves as the Distributor of shares of the 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”), each an
open-end management investment company organized as a Maryland corporation and registered with the
Securities and Exchange Commission (the “SEC”) under the Investment Company Act of 1940, as amended
(the “1940 Act”); and
WHEREAS, the Company are the issuer of variable annuity contracts and variable life insurance
policies (the “Contracts”); and
WHEREAS, the Company have entered into a participation agreement, dated April 3, 2007 (the
“Participation Agreement”), with the Fund, pursuant to which the Fund has agreed to make shares of
certain of its portfolios, listed in on Schedule A, as such Schedule may be amended from time to
time (the “Portfolios”), available for purchase by one or more of the Company’ separate accounts or
divisions thereof (each, a “Separate Account”) for Contract owners to allocate Contract value; and
WHEREAS, the Company desire to provide certain administrative and recordkeeping services to
Contract owners in connection with their allocation of Contract value and purchase payments to the
Portfolios, which services will result in substantial savings to the Fund (“Administrative
Services”); and
WHEREAS, the Company desires to be compensated by the Distributor for providing such
Administrative Services; and
WHEREAS, the Distributor desires to retain the Company to provide such services and to
compensate the Company for providing such services;
NOW THEREFORE, the Parties agree as follows:
Section I — Representations and Warranties
(A) The Company represents and warrants that each is an insurance company licensed under the
laws of the State of Nebraska.
(B) The Distributor represents and warrants that it is duly registered as a broker-dealer
Securities Act of 1934, as amended, and will remain duly registered under all applicable federal
and state securities laws.
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Section II — Administrative Services; Payments
(A) The Company shall perform all Administrative Services with respect to Contract owner
values and the Company’s assets from which investments in shares of the Portfolios are made,
including, without limitation, the following services:
(1) Maintaining separate records for each Contract owner, which shall reflect the Portfolio
shares purchased and redeemed and Portfolio share balances attributable to such Contract owners.
The Company will maintain an omnibus account with each Portfolio on behalf of Contract owners, and
such accounts shall be in the name of the Company (or its nominee) as the record owner of Portfolio
shares attributable to such Contract owners.
(2) Disbursing to or crediting to the benefit of Contract owners all proceeds of redemptions
of shares of the Portfolios in relation to Contract owner requests to redeem their Contract value
and processing all dividends and other distributions reinvested in shares of the Portfolios.
(3) Preparing and transmitting to Contract owners, as required by law, periodic statements
showing allocations to sub-accounts investing in the Portfolios, purchases and redemptions of
Portfolio shares and dividends and other distributions paid in relation to Contract owner
transaction requests, and such other information as may be required, from time to time, by Contract
owners.
(4) Maintaining and preserving all records required by law to be maintained and preserved in
connection with providing the foregoing services for Contract owners.
(5) Generating written confirmations to Contract owners, to the extent required by law.
(6) Administering the distribution to existing Contract owners of Portfolio prospectuses,
proxy materials, periodic reports to shareholders and other materials that the Portfolios provide
to their shareholders.
(7) Aggregating and transmitting purchase and redemption orders to the Portfolios on behalf
of, or with respect to, Contract owners.
(B) In consideration of the Company performing the Administrative Services, the Distributor
agrees to pay or cause to be paid to the Company, quarterly, an administrative services fee at the
annual rate provided in Schedule A of the average daily net assets of Portfolio shares held by the
Company pursuant to the Participation Agreement. The Company agrees that it will not seek
reimbursement for expenses for performing the Administrative Services under the Fund’s Distribution
Plan adopted pursuant to Rule 12b-1 under the 1940 Act (where applicable). In addition, the
Company represents and agrees that no charge imposed by it on Contract owners is specifically
intended or designed to compensate the Company for the Administrative Services for which payment is
made by the Fund under this Administrative Service Agreement.
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(C) The payment to the Company shall be calculated by Company at the end of each calendar
quarter and invoiced to the Distributor. The Distributor will pay the Company within 30 days after
receipt of such invoice.
(D) The Company will furnish to the Distributor or their designees such information as the
Distributor may reasonably request, and will otherwise cooperate with the Distributor in the
preparation of reports to the Fund’s Board of Directors concerning this Agreement, as well as any
other reports or filing that may be required by law.
Section III — Nature of Payments for Administrative Services
The parties to this Agreement recognize and agree that the Distributor’s payments to the Company
are for administration services only and do not constitute payment in any manner for investment
advisory services or for costs of distribution of Contracts or of Fund shares; and are not
otherwise related to investment advisory or distribution services or expenses. The amount of
administration expense payments made by the Distributor to the Company pursuant to this Agreement
are not intended to be, and shall not be deemed to be, indicative of the Distributor’s
bona fide profits from serving as distributor to the Fund or of the actual costs to the Company of
providing administration services to the Fund.
Section IV — Maintenance of Records
Each party shall maintain and preserve all records as required by law to be maintained and
preserved in connection with providing the services described herein. Upon the reasonable request
of the Distributor or the Fund, the Company will provide the Distributor, the Fund or the
representative of either, copies of all such records.
Section V — Term and Termination
(A) This Agreement shall remain in full force and effect for a period of one year from the
date hereof and shall be automatically renewed thereafter for successive one-year periods, unless
otherwise terminated.
(B) This Agreement may be terminated with respect to any Portfolio by the Distributor or by
the Company without penalty, upon sixty (60) days’ prior written notice to the other party.
Section VI — Amendment; Entire Agreement
This Agreement constitutes the entire agreement between the Parties with respect to the
administrative services and no modification, amendment or waiver of any of the provisions of this
Agreement shall be effective unless made in writing specifically referring to this Agreement and
signed by the Parties hereto.
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Section VII — Notices
All notices and other communications to either the Company or the Distributor will be duly given if
mailed, telegraphed or telecopied to the address set forth below, or at such other address as
either party may provide in writing to the other party.
Pacific Life Insurance Company
000 Xxxxxxx Xxxxxx Xxxxx
Xxxxxxx Xxxxx XX 00000
Attention: General Counsel
000 Xxxxxxx Xxxxxx Xxxxx
Xxxxxxx Xxxxx XX 00000
Attention: General Counsel
Xxxx Xxxxx Investor Services, LLC.
000 Xxxxx Xxxxxxxx Xxxxx
Xxxxxxxx, XX, 00000
Attention: Xxxx Xxxxxx
000 Xxxxx Xxxxxxxx Xxxxx
Xxxxxxxx, XX, 00000
Attention: Xxxx Xxxxxx
Section VIII — Miscellaneous
(A) Successors and Assigns. This Agreement shall be binding upon the parties and
their transferees, successors and permitted assigns. The benefits of and the right to enforce this
Agreement shall accrue to the parties and their transferees, successors and assigns.
(B) Intended Beneficiaries. Nothing in this Agreement shall be construed to give any
person or entity other than the parties, as well as the Fund, any legal or equitable claim, right
or remedy. Rather, this Agreement is intended to be for the sole and exclusive benefit of the
parties, as well as the Fund.
(C) Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original but all of which shall together constitute one and the same instrument.
(D) Applicable Law. This Agreement shall be interpreted, construed, and enforced in
accordance with the laws of the State of Delaware, without reference to the conflict of law
principles thereof.
(E) Severability. This Agreement shall be severable as it applies to each Portfolio,
and action on any matter shall be taken separately for each Portfolio affected by the matter. If
any portion of this Agreement shall be found to be invalid or unenforceable by a court or tribunal
or regulatory agency of competent jurisdiction, the remainder shall not be affected thereby, but
shall have the same force and effect as if the invalid or unenforceable portion had not been
inserted.
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IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed in its name and on
its behalf by its duly authorized representative as of April 3, 2007.
Pacific Life Insurance Company | ||||
By: | ||||
Xxxxx X. Xxxx | ||||
Title: | Executive Vice President and | |||
Chief Financial Officer |
ATTEST: | |
Xxxx Xxxxx Investor Services, LLC
By: |
Title: |
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SCHEDULE A
Administrative | ||||||
Fund Name | Trust Name | CUSIP | Services fees | |||
Xxxx Xxxxx Partners
Variable Aggressive
Growth Portfolio
(Class II)
|
Xxxx Xxxxx Partners Variable Equity Trust |
TBD 4/27/07 | 35 bps annual
compensation on
assets up to and
including $250MM
(includes 12b1
which is currently
25 bps, and a
service see of 10
bps) 40 bps annual compensation on assets in excess of $250MM (includes 12b1 which is currently 25 bps, and a service fee of 15 bps) |
|||
Xxxx Xxxxx Partners
Variable Mid Cap
Core Portfolio
(Class II)
|
Xxxx Xxxxx Partners Variable Equity Trust |
TBD 4/27/07 | 35 bps annual
compensation on
assets up to and
including $250MM
(includes 12b1
which is currently
25 bps, and a
service fee of 10
bps) 40 bps annual compensation on assets in excess of $250MM (includes 12b1 which is currently 25 bps, and a service fee of 15 bps) |
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