EXHIBIT (H)(21)(A)
PIMCO VARIABLE INSURANCE TRUST
SERVICES AGREEMENT
This Agreement is made as of April 1, 2000 between PIMCO Variable
Insurance Trust (the "Trust") and American International Life Assurance Company
of New York ("Authorized Firm"), a New York life insurance company.
RECITALS
WHEREAS, the Trust is registered as an open-end management investment
company under the Investment Company Act of 1940, as amended (the "1940 Act");
WHEREAS, the Trust issues shares of beneficial interest ("shares") in
separate series ("Portfolios"), with each Portfolio representing interests in a
separate portfolio of securities and other assets;
WHEREAS, certain beneficial owners of the Trust's shares ("investors")
may require administrative, recordkeeping, and other services, and the provision
of such services to investors requiring these services may benefit such
investors and facilitate their ability to invest in the Portfolios;
WHEREAS, the Trust has adopted a Services Plan pursuant to which the
Trust, on behalf of each Portfolio, may enter into agreements with registered
investment advisers, registered broker-dealers, banks, trust companies and other
persons or that agree to provide administrative, recordkeeping, and investor
services to their clients, members or customers who purchase shares of a
Portfolio, directly or indirectly; and
WHEREAS, the Trust desires that Authorized Firm provide, or arrange for
the provision of, certain administrative, recordkeeping, and/or investor
services with respect to shares of the Portfolios in accordance with the terms
and conditions of this Agreement set forth below.
WITNESSETH:
The Trust and Authorized Firm agree as follows:
1. Appointment. The Trust hereby authorizes Authorized Firm to
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provide certain administrative, recordkeeping and investor services to investors
in the Portfolios that are the clients, member, or customers of Authorized Firm.
The appointment of Authorized Firm hereunder is non-exclusive, and Authorized
Firm recognizes and agrees that, from time to time, the Trust (or its agent) may
enter into other agreements with financial intermediaries with respect to the
provision of administrative, recordkeeping and/or investors services.
2. Services to be Performed. For the duration of this Agreement,
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Authorized Firm agrees to use its best efforts, subject to applicable legal and
contractual restrictions and in compliance with the procedures described in the
prospectus(es) and statement(s) of additional information of the Portfolios as
from time to time in effect (collectively, the "Prospectus"), to provide in
respect of investors investing in shares of the Portfolios: teleservicing
support in connection with Portfolios; delivery of current Trust prospectuses,
reports, notices, proxies and proxy statements and other informational
materials; facilitation of the tabulation of investors' votes in the event of a
Trust shareholder vote; receiving, tabulating and transmitting proxies executed
by or on behalf of investors; maintenance of investor records reflecting shares
purchased and redeemed and share balances, and the conveyance of that
information to the Trust or Pacific Investment Management Company (the
administrator of the Portfolios) as may be reasonably requested; provision of
support services, including providing information about the Trust and its
Portfolios and answering questions concerning the Trust and its Portfolios,
including questions respecting investors' interests in one or more Portfolios;
provision and administration of insurance features for the benefit of investors
in connection with the Portfolios, which may include fund transfers, dollar cost
averaging, asset allocation, portfolio rebalancing, earnings sweep, and
pre-authorized deposits and withdrawals; receiving, aggregating and forwarding
purchase and redemption orders; acting as the nominee for investors; maintaining
account records and providing investors with account statements; processing
dividend payments; issuing investor reports and transaction confirmations;
providing subaccounting services; general account administration activities; and
providing such similar services as the Trust may reasonably request to the
extent the Authorized Firm is permitted to do so under applicable statutes,
rules or regulation.
3. Orders and Settlement. Orders submitted by Authorized Firm on
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behalf of investors shall be accepted or rejected by the Trust (or its agent)
in the manner disclosed in the Prospectus, or as otherwise agreed to by the
parties.
4. Compliance with Laws. In performing its duties under this
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Agreement, Authorized Firm agrees to abide by all applicable laws, including,
without limitation, federal and state securities laws and regulations, state
insurance laws and regulations, and the Employee Retirement Income Security Act
of 1974.
5. Sales Materials. No person is authorized to make any
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representations concerning shares of the Portfolios except those contained in
the then current Prospectus and printed information issued by the Trust as
explanatory materials and/or information supplemental to each Prospectus. The
Trust shall supply or cause to be supplied Prospectuses, reasonable quantities
of supplemental sales literature, explanatory materials and additional
information as issued. Authorized Firm agrees not to use other advertising or
sales material relating to the Portfolios unless approved in writing by the
Trust in advance of such use. Authorized Firm agrees to indemnify the Portfolios
and the Trust for any loss, injury, damage, expense or liability arising from or
based upon any alleged or untrue statement or representations made by Authorized
Firm other than statements contained in the Prospectus or sales literature
authorized by the Trust.
6. Compensation. In consideration of Authorized Firm's provision
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of the services as described in this Agreement, the Trust agrees, subject to the
limitations of applicable law and regulations, including rules of the National
Association of Securities Dealers, Inc., to pay
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Authorized Firm fees ("Service Fees") at an annual rate of up to ____% of the
average of the aggregate net asset value of outstanding shares serviced by
Authorized Firm, measured on each business day during each month. Authorized
Firm may, in turn, pay any or all of these fees to service providers with whom
it has entered into service agreements, with no recourse to or liability on the
part of the Trust or any Portfolio. The applicable portion of the Service Fees
will be paid by the Trust within 20 days following the end of each calendar
quarter. The parties acknowledge and agree that the Service Fees will be paid by
the Trust on behalf of each Portfolio and shall be paid for each Portfolio only
so long as this Agreement is in effect.
The fee rate with respect to any Portfolio may be prospectively
increased or decreased by the Trust, in its sole discretion, at any time upon
notice to Authorized Firm.
In addition, Authorized Firm will furnish to the Trust or its designees
such information as the Trust or its designees may reasonably request
(including, without limitation, periodic certifications confirming the rendering
of services with respect to shares of the Portfolios as described herein), and
will otherwise cooperate with the Trust and its designees (including, without
limitation, any auditors designated by the Trust), in the preparation of reports
to the Trust's Board of Trustees concerning this Agreement and the monies paid
or payable by the Trust pursuant hereto, as well as any other reports or filings
that may be required by law.
7. Term and Termination.
(a) This Agreement is entered into by the Trust in
accordance with the terms of the Services Plan. Accordingly, unless sooner
terminated, this Agreement will continue in effect until one year from the date
hereof and thereafter for successive annual periods, provided that such
continuance is specifically approved at least annually by votes of a majority of
both (i) the Board of Trustees of the Trust and (ii) those Trustees of the Trust
who are not "interested persons" (as defined in the Investment Company Act of
1940) and have no direct or indirect financial interest in the operation of the
Distribution Plan or any agreements related to it ("Plan Trustees"), cast in
person at a meeting called for the purpose of voting on the Services Plan and
such related agreements.
(b) This Agreement may be terminated, with respect to a
Portfolio, at any time without the payment of any penalty, by vote of a majority
of the Plan Trustees or by vote of a majority of a Portfolio's shares, on 30
days' written notice. Notice of termination (or nonrenewal) of the Services Plan
by the Trustees shall constitute a notice of termination of this Agreement.
(c) This Agreement shall terminate automatically in the
event of its assignment, as defined in the 1940 Act.
8. Governing Law. This Agreement shall be construed and the
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provisions thereof interpreted under and in accordance with the laws of the
State of California applicable to agreements fully executed and to be performed
therein, without regard to its conflicts of law rules.
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9. Limitation on Liability. The obligations of the Trust under
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this Agreement shall only be binding upon the assets and property of the Trust,
and shall not be binding upon any Trustee, officer or shareholder of the Trust
individually.
10. Exculpation: Indemnification
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(a) The Trust shall not be liable to Authorized Firm and
Authorized Firm shall not be liable to the Trust except for acts or failures to
act which constitute lack of good faith or gross negligence and for obligations
expressly assumed by either party hereunder. Nothing contained in this Agreement
is intended to operate as a waiver by the Trust or by Authorized Firm of
compliance with any applicable federal or state law, rule, or regulation and the
rules and regulations promulgated by the National Association of Securities
Dealers, Inc.
(b) Authorized Firm will indemnify the Trust and hold it
harmless from any claims or assertions relating to the lawfulness of Authorized
Firm's participation in this Agreement and the transactions contemplated hereby
or relating to any activities of any persons serving as officers or employees of
Authorized Firm and performed in connection with the discharge of its
responsibilities under this Agreement. If any such claims are asserted, the
Trust shall have the right to manage its own defense, including the selection
and engagement of legal counsel of its choosing, and all costs of such defense
shall be borne by Authorized Firm.
11. Notices. Each notice required by this Agreement shall be given
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in writing and delivered personally or mailed by certified mail or courier
service or sent by facsimile to the party's address identified on the signature
page to this Agreement or such other address as each party may by written notice
provide to the other. A notice given pursuant to this section shall be deemed to
have been given immediately when delivered personally or by facsimile, three (3)
days after the date of certified mailing, and one (1) day after delivery by
overnight courier service.
12. Complete Agreement. This Agreement contains the full and
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complete understanding of the parties and supersedes all prior representations,
promises, statements, arrangements, agreements, warranties and understandings
between the parties with respect to the subject matter hereof, whether oral or
written, express or implied.
13. Amendment. This Agreement may be modified or amended, and the
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terms of this Agreement may be waived, only by a writing signed by each of the
parties.
14. Counterparts. This Agreement may be executed in two or more
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counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same Agreement.
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IN WITNESS WHEREOF, the undersigned have executed this Agreement by their duly
authorized officers as of the date and year first written above.
PIMCO Variable Insurance Trust
By:
------------------------------- Address for Notices:
Name: 000 Xxxxxxx Xxxxxx Xxxxx, Xxxxx 000
------------------------------- Xxxxxxx Xxxxx, XX 00000
Title: Fax: (000) 000-0000
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American International Life Assurance Company of New York
By:
------------------------------- Address for Notices:
Name: 00 Xxxx Xxxxxx, 00xx Xxxxx
------------------------------- Xxx Xxxx, XX 00000
Title: Fax: (000) 000-0000
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