SELECTED BROKER AGREEMENT
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Exhibit 26(c)(ii) |
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AGREEMENT dated ____________, 1984, by and between Pruco Securities |
Corporation (Distributor), a New Jersey corporation, and ________________
(Broker), a _________________ corporation.
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WITNESSETH: |
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In consideration of the mutual promises contained herein, the parties |
hereto agree as follows:
A. Definitions
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(1) Contracts - The variable appreciable life insurance contracts which |
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Pruco Life Insurance Company of New Jersey (Company), a New Jersey |
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corporation, proposes to issue and for which Distributor has been |
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appointed the principal underwriter pursuant to a Distribution |
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Agreement, a copy of which has been furnished to Broker. |
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(2) Pruco Life of New Jersey Variable Appreciable Account, or the Account |
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The separate account established and maintained by Company pursuant to |
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the laws of New Jersey to fund the benefits under the Contracts. |
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(3) Pruco Life Series Fund, Inc., or the Fund - An open-end management |
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investment company registered under the 1940 Act, shares of which are |
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sold to the Account in connection with the sale of the Contracts. |
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(4) Registration Statement - The registration statements and amendments |
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thereto relating to the Contracts, the Account, and the Fund, |
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including financial statements and all exhibits. |
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(5) Prospectus - The prospectuses included within the registration |
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Statements referred to herein. |
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(6) 1933 Act - The Securities Act of 1933, as amended. |
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(7) 1934 Act - The Securities Exchange Act of 1934, as amended. |
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(8) SEC - The Securities and Exchange Commission. |
B. Agreements of Distributor
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(1) Pursuant to the authority delegated to it by Company, Distributor |
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hereby authorizes Broker during the term of this Agreement to solicit |
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applications for Contracts from eligible persons provided that there |
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is an effective Registration Statement relating to such Contracts and |
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provided further that Broker has been notified by Distributor that the |
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Contracts are qualified for sale under all applicable securities and |
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insurance laws of the state or jurisdiction in which the application |
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will be solicited. In connection with the solicitation of applications |
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for Contracts, Broker is hereby authorized to offer riders that are |
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available with the Contracts in accordance with instructions furnished |
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by Distributor or Company. |
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(2) Distributor, during the term of this Agreement, will notify Broker of |
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the issuance by the SEC of any stop order with respect to the |
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Registration Statement or any amendments thereto or the initiation of |
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any proceedings for that purpose or for any other purpose relating to |
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the registration and/or offering of the Contracts and of any other |
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action or circumstance that may prevent the lawful sale of the |
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Contracts in any state or jurisdiction. |
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(3) During the term of this Agreement, Distributor shall advise Broker of |
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any amendment to the Registration Statement or any amendment or |
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supplement to any Prospectus. |
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C. Agreements of Broker
(1) It is understood and agreed that Broker is a registered broker/dealer under
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the 1934 Act and a member of the National Association of Securities |
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Dealers, Inc. and that the agents or representatives of Broker who will be |
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soliciting applications for the Contracts also will be duly registered |
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representatives of Broker. |
(2) Commencing at such time as Distributor and Broker shall agree upon, Broker
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agrees to use its best efforts to find purchasers for the contracts |
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acceptable to Company. In meeting its obligation to use its best efforts to |
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solicit applications for Contracts, Broker shall, during the term of this |
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Agreement, engage in the following activities: |
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(a) Continuously utilize training, sales and promotional materials which |
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have been approved by Company; |
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(b) Establish and implement reasonable procedures for periodic inspection |
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and supervision of sales practices of its agents or representatives |
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and submit periodic reports to Distributor as may be requested on the |
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results of such inspections and the compliance with such procedures. |
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(c) Broker shall take reasonable steps to ensure that the various |
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representatives appointed by it shall not make recommendations to an |
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applicant to purchase a Contract in the absence of reasonable grounds |
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to believe that the purchase of the Contract is suitable for such |
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applicant. While not limited to the following, a determination of |
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8uitability shall be based on information furnished to a |
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representative after reasonable inquiry of such applicant concerning |
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the applicant1s insurance and investment objectives, financial |
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situation and needs, and the likelihood that the applicant will |
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continue to make the premium payments contemplated by the Contract. |
(3) |
All payments for Contracts collected by agents or representatives of |
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Broker shall be held at all times in a fiduciary capacity and shall be |
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remitted promptly in full together with such applications, forms and other |
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required documentation to an office of the Company designated by |
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Distributor. Checks or money orders in payment of initial premiums shall |
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be drawn to the order of "Pruco Life Insurance Company." Broker |
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acknowledges that the Company retains the ultimate right to control the |
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sale of the Contracts and that the Distributor or Company shall have the |
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unconditional right to reject, in whole or in part, any application for |
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the Contract. In the event Company or Distributor rejects an application, |
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Company immediately will return all payments directly to the purchaser and |
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Broker will be notified of such action. In the event that any purchaser of |
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a Contract elects to return such Contract pursuant to Rule |
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6e-2(b)(13)(viii) of the 1940 Act, the purchaser will receive a refund of |
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any premium payments, plus or minus any change due to investment |
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performance in the value of the invested portion of such premiums; |
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however, if applicable state law so requires, the purchaser who exercises |
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his short-term cancellation right will receive a refund of all payments |
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made, unadjusted for investment experience prior to the cancellation. The |
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Broker will be notified of any such action. |
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(4) |
Broker shall act as an independent contractor, and nothing herein |
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contained shall constitute Broker, its agents or representatives, or any |
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employees thereof as employees of Company or Distributor in connection |
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with the solicitation of applications for Contracts. Broker, its agents or |
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representatives, and its employees shall not hold themselves out to be |
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employees of Company or Distributor in this connection or in any dealings |
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with the public. |
(5) |
Broker agrees that any material it develops, approves or uses for sales, |
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training, explanatory or other purposes in connection with the |
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solicitation of applications for Contracts hereunder (other than generic |
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advertising materials which do not make specific reference to the |
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Contracts) will not be used without the prior written consent of |
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Distributor and, where appropriate, the endorsement of Company to be |
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obtained by Distributor. |
(6) |
Solicitation and other activities by Broker shall be undertaken only in |
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accordance with applicable laws and regulations. No agent or |
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representative of Broker shall solicit applications for the contracts |
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until duly licensed and appointed by Company as a life insurance and |
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variable contract broker or agent of Company in the appropriate states or |
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other jurisdictions. Broker shall ensure that such agents or |
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representatives fulfill any training requirements necessary to be |
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licensed. Broker understands and acknowledges that neither it nor its |
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agents or representatives is authorized by Distributor or Company to give |
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any information or make any representation in connection with this |
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Agreement or the offering of the Contracts other than those contained in |
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the Prospectus or other solicitation material authorized in writing by |
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Distributor or Company. |
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(7) Broker shall not have authority on behalf of Distributor or Company to:
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make, alter or discharge any Contract or other form; waive any forfeiture, |
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extent the time of paying any premium; receive any monies or premiums due, |
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or to become due, to Company, except as set forth in Section C(3) of this |
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Agreement. Broker shall not expend, nor contract for the expenditure of the |
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funds of Distributor, nor shall Broker possess or exercise any authority on |
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behalf of Broker by this Agreement. |
(8) Broker shall have the responsibility for maintaining the records of its
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representatives licensed, registered and otherwise qualified to sell the |
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Contracts. Broker shall maintain such other records as are required of it |
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by applicable laws and regulations. The books, accounts and records of |
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Company, the Account, Distributor and Broker relating to the sale of the |
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Contracts shall be maintained so as to clearly and accurately disclose the |
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nature and details of the transactions. All records maintained by the |
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Broker in connection with this Agreement shall be the property of the |
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Company and shall be returned to the Company upon termination of this |
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Agreement, free from any claims or retention of rights by the Broker. The |
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Broker shall keep confidential any information obtained pursuant to this |
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Agreement and shall disclose such information, only if the Company has |
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authorized such disclosure, or if such disclosure is expressly required by |
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applicable federal or state regulatory authorities. |
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D. Compensation
(1) Pursuant to the Distribution Agreement between Distributor and Company,
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Distributor shall cause Company to arrange for the payment of commissions |
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to Broker as compensation for the sale of each contract sold by an agent or |
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representative of Broker. The amount of such compensation shall be based on |
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a schedule to be determined by agreement of Company, Distributor and |
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Broker. Company shall identify to Broker with each such payment the name of |
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the agent or representative of Broker who solicited each Contract covered |
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by the payment. |
(2) Neither Broker nor any of its agents or representatives shall have any
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right to withhold or deduct any part of any premium it shall receive for |
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purposes of payment of commission or otherwise. Neither Broker nor any of |
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its agents or representatives shall have an interest in any compensation |
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paid by Company to Distributor, now or hereafter, in connection with the |
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sale of any Contracts hereunder. |
E. Complaints and Investigations
(1) Broker and Distributor jointly agree to cooperate fully in any insurance
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regulatory investigation or proceeding or judicial proceeding arising in |
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connection with the Contracts marketed under this Agreement. Broker and |
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Distributor further agree to cooperate fully in any securities regulatory |
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investigation or proceeding or judicial proceeding with respect to Broker, |
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Distributor, their affiliates and their agents or representatives to the |
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extent that such investigation or proceeding is in connection with |
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Contracts marketed under this Agreement. Broker shall furnish applicable |
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federal and state regulatory authorities with any information or reports in |
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connection with its services under this Agreement which such authorities |
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may request in order to ascertain whether the Company's operations are |
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being conducted in a manner consistent with any applicable law or |
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regulation. |
F. Term of Agreement
(1) This Agreement shall continue in force for one year from its effective date
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and thereafter shall automatically be renewed every year for a further one |
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year period; provided that either party may unilaterally terminate this |
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Agreement upon thirty (30) days' written notice to the other party of its |
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intention to do so. |
(2) Upon termination of this Agreement, all authorizations, rights and
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obligations shall cease except (a) the agreements contained in Section E |
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hereof; (b) the indemnity set forth in Section G hereof; and (c) the |
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obligations to settle accounts hereunder, including payments on premiums |
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subsequently received for Contracts in effect at the time of termination or |
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issued pursuant to applications received by Broker prior to termination. |
G. Indemnity
(1) Broker shall be held to the exercise of reasonable care in carrying out the
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provisions of this Agreement. |
(2) Distributor agrees to indemnify and hold harmless Broker and each officer
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or director of Broker against any losses, claims, damages or liabilities, |
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joint or several, to which Broker or such officer or director become |
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subject, under the 1933 Act or otherwise, insofar as such losses, claims, |
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damages or liabilities (or actions |
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in respect thereof) arise out of or are based upon any untrue statement or |
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alleged untrue statement of a material fact, required to be stated therein |
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or necessary to make the statements therein not misleading, contained in |
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any Registration Statement or any post-effective amendment thereof or in |
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the Prospectus or any amendment or supplement to the Prospectus. |
(3) Broker agrees to indemnify and hold harmless Company and Distributor and
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each of their current and former directors and officers and each person, if |
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any, who controls or has controlled Company or Distributor within the |
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meaning of the 1933 Act or the 1934 Act, against any losses, claims, |
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damages or liabilities to which Company or Distributor and any such |
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director or officer or controlling person may become subject, under the |
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1933 Act or otherwise, insofar as such losses, claims, damages or |
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liabilities (or actions in respect thereof) arise out of or are based upon: |
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(a) Any unauthorized use of sales materials or any verbal or written |
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misrepresentations or any unlawful sales practices concerning the |
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Contracts by Brokers; or |
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(b) Claims by agents or representatives or employees of Broker for |
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commissions, service fees, development allowances or other |
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compensation or renumeration of any type; |
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(c) The failure of Broker, its officers, employees, or agents to comply |
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with the provisions of this Agreement; and Broker will reimburse |
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Company and Distributor and any director or officer or controlling |
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person of either for any legal or other expenses reasonably incurred |
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by Company, Distributor, or such director, officer or |
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controlling person in connection with investigating or defending any |
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such loss, claims, damage, liability or action. This indemnity |
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agreement will be in addition to any liability which Broker may |
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otherwise have. |
E. Assignability
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This Agreement shall not be assigned by either party without the written |
consent of the other.
I. Governing Law
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This Agreement shall be governed by and construed in accordance with the |
laws of the State of New Jersey.
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In Witness Whereof, the parties hereto have caused this Agreement to be |
duly executed as of the day and year first above written.
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PRUCO SECURITIES CORPORATION |
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(Distributor) |
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By |
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(Broker) |
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By |
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