Amendment to M Fund Inc. Participation
Agreement with Pruco Life Insurance Company
THIS
AMENDMENT (“Amendment”) is made as of the _31st_ day of October, 2003, by and
among M Fund, Inc., a corporation organized and existing under the laws of the State of
Maryland (the “Fund”), M Financial Investment Advisers, Inc., a corporation
organized and existing under the laws of the State of Colorado (the “Adviser”)
and Pruco Life Insurance Company, a life insurance company organized and existing under
the laws of the State of Arizona (the “Company”), on its own behalf and on
behalf of each separate account of the Company identified herein.
WHEREAS,
the parties entered into the M Fund, Inc. Participation Agreement With Pruco Life
Insurance Company (“Agreement”) on May 22, 2001 pursuant to which Fund interests
became available as an investment vehicle for Magnastar private placement life insurance
policies issued by Pruco Life Insurance Company; and
WHEREAS
the parties seek to provide Fund interests as an investment vehicle for classes of
variable life insurance policies and variable annuity contracts (“Contracts”)
registered pursuant to federal securities laws and issued by the Company;
NOW,
THEREFORE, in consideration of their mutual promises, the parties agree to amend the
Agreement as follows:
1. |
Paragraph 1.1 of the Agreement is amended to state: “Account” —
each separate account of the Company described more specifically in Schedule 1
or Schedule A to this Agreement (as may be amended from time to time). |
2. |
Paragraph 1.4 of the Agreement is amended to state: “Contracts” —
the class or classes of variable annuity contracts and variable life insurance
policies issued by the Company and described more specifically on Schedule 1 or
Schedule B to this Agreement (as may be amended from time to time). |
3. |
Paragraph 1.11 of the Agreement is amended to state: “Prospectus”
— with respect to the Fund shares or a class of Contracts, each version of
the definitive prospectus therefor or supplement thereto filed with the SEC
pursuant to Rule 497 under the 1933 Act. With respect to any provision of this
Agreement requiring a party to take action in accordance with a Prospectus, such
reference thereto shall be deemed to be to the version last so filed prior to
the taking of such action. For purposes of Section 4.6 and Article VIII, the
term “Prospectus” shall include any statement of additional
information incorporated therein. |
4. |
Paragraph 1.12 of the Agreement is amended to state: “Registration
Statement” — with respect to the Fund shares or a class of Contracts,
the registration statement filed with the SEC to register the securities issued
thereby under the 1933 Act, or the most recently filed amendment thereto, in
either case in the form in which it was declared or became effective. The
Contracts Registration Statement (if any) is described more specifically on
Schedule B to this Amendment. The Fund Registration Statement was filed on Form
N-1A (File No. 33-95472). |
5. |
Paragraph 1.13 of the Agreement is amended to state: “1940 Act Registration
Statement” — with respect to the Fund or the Account, the registration
statement filed with the SEC to register such person as an investment company
under the 1940 Act, or the most recently filed amendment thereto. The Account
1940 Act Registration Statement (if any) is described more specifically on
Schedule A to this Amendment. The Fund 1940 Act Registration Statement was filed
on Form N-1A (File No. 811-9082). |
6. |
Paragraph 1.14 of the Agreement is amended to state: “Statement of
Additional Information” — with respect to the Fund or a class of
Contracts, each version of the definitive statement of additional information or
supplement thereto filed with the SEC pursuant to Rule 497 under the 1933 Act. |
7. |
Paragraph 2.1 of the Agreement is amended to state: The Fund shall make shares
of those Series listed on Schedule 2 and Schedule C to this Agreement available
for purchase by the Company on its own behalf or on behalf of the Account, such
purchases to be effected at net asset value in accordance with Section 2.3 of
this Agreement. Notwithstanding the foregoing, (i) Fund Series in existence now
or that may be established in the future and not listed on Schedule 2 or
Schedule C will be made available to the Company only as the Adviser may so
provide, and (ii) the Board of Directors of the Fund (the “Fund
Board”) may suspend or terminate the offering of Fund shares of any Series
or class thereof, if such action is required by law or by regulatory authorities
having jurisdiction or if, in the sole discretion of the Fund Board acting in
good faith and in light of its fiduciary duties under federal and any applicable
state laws, suspension or termination is necessary or in the best interests of
the shareholders of any Series (it being understood that
“shareholders” for this purpose shall mean Product Owners). |
8. |
Paragraph 4.3 of the Agreement is amended to state: The Company shall file,
register, qualify and obtain approval of the Contracts for sale to the extent
required by applicable federal law and insurance and securities laws of the
various states. The Company shall amend the Contracts Registration Statement (if
any) and the Account’s 1940 Act Registration Statement (if any) from time
to time as required in order to effect the continuous offering of the Contracts
or as may otherwise be required by applicable law. |
9. |
Paragraph 4.5 of the Agreement is amended to state: The Company shall provide,
as applicable, Contracts, Contracts and Fund Prospectuses, Contracts and Fund
Statements of Additional Information, Contract private placement memoranda,
reports, solicitations for voting instructions including any related Fund proxy
solicitation materials, and all amendments or supplements to any of the
foregoing, to Contract Owners and prospective Contract Owners, all in accordance
with the federal and any applicable state securities laws. |
10. |
Paragraph 4.6(b) of the Agreement is amended to state: Expenses assumed by the
Company include, but are not limited to, the costs of: (i) filing and
qualification of the Contracts under the federal and any applicable state
insurance or securities laws; (ii) preparation of, and filing with the SEC, of
the Contracts Prospectus and Contracts Registration Statement, if any, and all
supplements thereto; (iii) preparation and dissemination of any necessary
disclosure documents for the Contracts or the Account, including those related
to private placement Contracts; (iv) preparation and dissemination of all
statements and notices to Contract Owners required by any federal or state
insurance law; and (v) distribution of Fund proxy materials and reports to
Contract Owners. |
11. |
Article IV of the Agreement is amended by adding paragraph 4.12 which states:
Any piece of advertising or sales literature or other promotional material in
which the Company or the Account is named and which will be used by the Fund or
the Adviser shall be furnished by the Fund or the Adviser, as applicable, to the
Company not less than 15 days prior to its use. No such material shall be used
if the Company or its designee objects to such use within 15 days after receipt
of such material, provided that it may be used earlier than the end of such 15
day period if the Company or its designee consents in writing to its use. |
12. |
Article IV of the Agreement is amended by adding paragraph 4.13 which states:
Any piece of advertising or or other promotional material in which the Fund is
named and which will be used by the Company shall be furnished by the Company to
the Fund not less than 15 days prior to its use. No such material shall be used
if the Fund or its designee objects to such use within fifteen days after
receipt of such material, provided that it may be used earlier than the end of
such 15 day period if the Fund or its designee consents in writing to its use.
The Fund may delegate its rights and responsibilities. |
13. |
Article IV of the Agreement is amended by adding paragraph 4.14 which states:
The Company shall not give any information or make any representations or
statements on behalf of the Fund or concerning the Fund to the public (including
current and prospective Contract owners) in connection with the sale of the
Contracts other than the information or representations contained in the Fund
Registration Statement or Fund Prospectus (as such Registration Statement or
Prospectus may be amended or supplemented from time to time) or in reports or
proxy statements for the Fund, or in sales literature or other promotional
material approved in accordance with paragraph 12 of this Amendment (which shall
be paragraph 4.13 of the Agreement as amended hereby), except with the prior
written consent of the Fund. |
14. |
Paragraph 4.7 of the Agreement is amended to state: The Fund and the Adviser
shall not give any information or make any representations on behalf of the
Company or concerning the Company, the Account or the Contracts other than the
information or representations contained in the Contracts Registration Statement
or Contracts Prospectus (as such Registration Statement or Prospectus may be
amended or supplemented from time to time), if any, or in the Contracts private
placement memoranda (as may be amended from time to time), if any, or in
published reports of the Account which are in the public domain or approved in
writing by the Company for distribution to Contract Owners, or in sales
literature or other promotional material approved in accordance with paragraph
11 of this Amendment (which shall be paragraph 4.12 of the Agreement as amended
hereby) except with the prior written consent of the Company. |
15. |
Article IV of the Agreement is amended to add paragraph 4.15 which states: For
purposes of this Article IV, the phrase “sales literature or other
promotional material” includes, but is not limited to, any material
constituting sales literature or advertising under the NASD rules, the 1940 Act
or the 0000 Xxx. |
16. |
Paragraph 8.1(a) of the Agreement is amended to state: (a) arise out of or are
based upon any untrue statement or alleged untrue statement of any material fact
contained in the Contract Prospectus, Contract Registration Statement, Contract
private placement memorandum or other disclosure documents for the Contracts or
the Contracts themselves (or any amendment or supplement to any of the
foregoing), or the omission or the alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein
not misleading in light of the circumstances in which they were made; provided
that this obligation to indemnify shall not apply if such statement or omission
or such alleged statement or alleged omission was made in reliance upon and in
conformity with information furnished in writing to the Company by or on behalf
of the Fund or Adviser for use in such documents, or in the Contracts (or any
amendment or supplement to any of the foregoing) or otherwise for use in
connection with the sale of the Contracts or Fund shares. |
17. |
Article VIII is amended to add paragraph 8.3 which states: Indemnification by
the Fund. The Fund shall indemnify and hold harmless the Company and each
person who controls the Company within the meaning of such terms under the 1933
Act and any officer, director, employee or agent of the foregoing, against any
and all losses, claims, damages or liabilities, joint or several (including any
investigative, legal and other expenses reasonably incurred in connection with,
and any amounts paid with the written consent of the Fund in settlement of, any
action, suit or proceeding or any claim asserted), to which they or any of them
may become subject under any statute or regulation, at common law or otherwise,
insofar as such losses, claims, damages or liabilities are related to the sale
or acquisition of the Fund’s shares or the Contracts and: |
|
(a)
arise out of or are based upon any untrue statement or alleged untrue statement
of any material fact contained in the Fund Registration Statement, Fund
Prospectus or sales literature or other promotional material of the Fund (or any
amendment or supplement to any of the foregoing), or the omission or the alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the
circumstances in which they were made; provided that this obligation to
indemnify shall not apply if such statement or omission or alleged statement or
alleged omission was made in reliance upon and in conformity with information
furnished in writing to the Fund by or on behalf of the Company for use in the
Fund Registration Statement, Fund Prospectus or sales literature or promotional
material for the Fund (or any amendment or supplement to any of the foregoing);
or |
|
(b)
arise out of any untrue statement or alleged untrue statement of a material fact
contained in the Contract Prospectus, Contract Registration Statement, Contract
private placement memorandum or other disclosure documents for the Contracts or
the Contracts themselves (or any amendment or supplement to any of the
foregoing), or the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances in which they were made, if such
statement or omission was made in reliance upon information furnished in writing
by or on behalf of the Fund to the Company; or |
|
(c)
arise out of or are based upon wrongful conduct of the Fund or persons under its
control (or subject to its authorization) with respect to the sale of Fund
shares; or |
|
(d)
arise as a result of any failure by the Fund to provide the services and furnish
the materials required under the terms of this Agreement; or |
|
(e)
arise out of any material breach by the Fund of this Agreement (including any
breach of Article VI of this Agreement). |
This indemnification will be in
addition to any liability that the Fund may otherwise have; provided, however, that no
party shall be entitled to indemnification if such loss, claim, damage or liability is due
to the wilful misfeasance, bad faith, gross negligence or reckless disregard of duty by
the party seeking indemnification.
|
18. |
Paragraph 10.2(c) of the Agreement is amended to state: (c) in the event any of
the Contracts are not registered, issued or sold in accordance with applicable
federal and/or state law. |
|
19. |
Article XII is amended to change the address for the Fund and the Adviser as
follows: |
M Fund, Inc.
0000 Xxxxxxxxx Xxxxx Xxxxxx
Xxxxxxxx,Xxxxxx 00000
M Financial Investment Advisers, Inc.
0000 Xxxxxxxxx Xxxxx Xxxxxx
Xxxxxxxx, Xxxxxx 00000
[The remainder of this page is
intentionally left blank.]
20.
The Agreement is amended to add Schedules A, B, and C attached hereto.
IN WITNESS WHEREOF, each of the
parties hereto has caused this Amendment to be executed in its name and behalf by its duly
authorized officer on the date specified below.
PRUCO LIFE INSURANCE COMPANY
(Company)
Date: ___12/5/2003__________
By: _/s/__William E Connor_________
Name: Xxxxxxx X Xxxxxx
Title: Vice President and Actuary
M FUND, INC.
(Fund)
Date: ___11/19/2003____
By: __/s/___Daniel F Byrne_____________________
Name: Xxxxxx X. Xxxxx
Title: President
M FINANCIAL INVESTMENT ADVISERS, INC.
(Adviser)
Date: ___11/19/2003____
By: __/s/___Daniel F Byrne__________________
Name: Xxxxxx X. Xxxxx
Title: President
Schedule A
Accounts of the Company
Investing in the Fund
Effective as of the date the
Agreement was executed, the following separate accounts of the Company and Contracts are
subject to the Agreement:
====================================== ==================================== ====================================
Name of Account and Subaccounts Type of Product
Supported by Account Name of Product
====================================== ==================================== ====================================
-------------------------------------- ------------------------------------ ------------------------------------
Pruco Life Variable Contract Account 3(c)(7) Private Placement Variable Magnastar Private Placement
M Universal Life Variable Universal Life
-------------------------------------- ------------------------------------ ------------------------------------
Pruco Life Variable Contract Account 3(c)(1) Private Placement Variable Magnastar Private Placement
M2 Universal Life Variable Universal Life
-------------------------------------- ------------------------------------ ------------------------------------
Pruco Life Variable Universal Account Individual Flexible Premium MPremier Variable Universal Life
Variable Universal Life
====================================== ==================================== ====================================
Schedule B
Classes of Contracts
Supported by Separate Accounts
Listed on Schedule A
Effective as of the effective date of
the Amendment, the following classes of Contracts are subject to the Agreement:
=============================== =========================== =========================== ============================
Policy Marketing Name SEC 1933 Act Registration Name of Supporting Account Annuity or Life
Number
(if applicable)
=============================== =========================== =========================== ============================
------------------------------- --------------------------- --------------------------- ----------------------------
Magnastar Private Placement N/A Pruco Life Variable 3(c)(7) Private Placement
Variable Universal Life Contract Account M Variable Universal Life
------------------------------- --------------------------- --------------------------- ----------------------------
Magnastar Private Placement N/A Pruco Life Variable 3(c)(1) Private Placement
Variable Universal Life Contract Account M2 Variable Universal Life
------------------------------- --------------------------- --------------------------- ----------------------------
MPremier VUL 333-109284 Pruco Life Variable Individual Flexible
Universal Account Premium Variable Universal
Life
=============================== =========================== =========================== ============================
Schedule C
Fund Series and Other Funding
Vehicles Available Under
Each Class of Contracts
Effective as of October 31, 2003, Schedule
2 is hereby amended to reflect the following addition in Fund Series and other funding
vehicles:
Contract Marketing Name
– MPremier VUL
M Fund, Inc. Fund Series:
======================================== ================================================ ==========================
Fund Name Investment Advisor/Sub-Adviser Exempt/ Registered
======================================== ================================================ ==========================
======================================== ================================================ ==========================
Xxxxxxx International Equity Fund M Financial Investment Advisers, Inc./Xxxxxxx Registered
Investment Partners, L.P.
---------------------------------------- ------------------------------------------------ --------------------------
---------------------------------------- ------------------------------------------------ --------------------------
Frontier Capital Appreciation Fund M Financial Investment Advisers, Inc./Frontier Registered
Capital Management Company, LLC
---------------------------------------- ------------------------------------------------ --------------------------
---------------------------------------- ------------------------------------------------ --------------------------
Xxxxxx Core Growth Fund M Financial Investment Advisers, Inc./Xxxxxx Registered
Investment Partners
---------------------------------------- ------------------------------------------------ --------------------------
---------------------------------------- ------------------------------------------------ --------------------------
Business Opportunity Value Fund M Financial Investment Advisers, Inc./Iridian Registered
Asset Management
======================================== ================================================ ==========================
Other Funding Vehicles
======================================== ================================================ ==========================
Fund Name Investment Advisor/Sub-Adviser Exempt/ Registered
======================================== ================================================ ==========================
======================================== ================================================ ==========================
Money Market Prudential Investment Corp. Registered
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---------------------------------------- ------------------------------------------------ --------------------------
Diversified Bond Prudential Investment Corp. Registered
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Equity Prudential Investment Corp. Registered
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Global Prudential Investment Corp. Registered
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High Yield Bond Prudential Investment Corp. Registered
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Xxxxxxxx Prudential Investment Corp. Registered
---------------------------------------- ------------------------------------------------ --------------------------
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Stock Index Prudential Investment Corp. Registered
---------------------------------------- ------------------------------------------------ --------------------------
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SP Aggressive Growth Asset Allocation Prudential Investment Corp. Registered
---------------------------------------- ------------------------------------------------ --------------------------
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SP AIM Aggressive Growth Prudential Investment Corp. Registered
---------------------------------------- ------------------------------------------------ --------------------------
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SP AIM Core Equity Prudential Investment Corp. Registered
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SP Alliance Large Cap Growth Prudential Investment Corp. Registered
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SP Balanced Asset Allocation Prudential Investment Corp. Registered
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SP Conservative Asset Allocation Prudential Investment Corp. Registered
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XX Xxxxx Value Prudential Investment Corp. Registered
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SP Deutsche International Equity Prudential Investment Corp. Registered
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SP Growth Asset Allocation Prudential Investment Corp. Registered
---------------------------------------- ------------------------------------------------ --------------------------
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SP INVESCO Small Company Growth Prudential Investment Corp. Registered
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XX Xxxxxxxx International Growth Prudential Investment Corp. Registered
---------------------------------------- ------------------------------------------------ --------------------------
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SP MFS Capital Opportunities Prudential Investment Corp. Registered
---------------------------------------- ------------------------------------------------ --------------------------
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SP Mid Cap growth Prudential Investment Corp. Registered
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SP PIMCO High Yeild Prudential Investment Corp. Registered
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SP PIMCO Total Return Prudential Investment Corp. Registered
---------------------------------------- ------------------------------------------------ --------------------------
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SP Prudential U.S. Emerging Growth Prudential Investment Corp. Registered
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SP Strategic Partners Focused Growth Prudential Investment Corp. Registered
======================================== ================================================ ==========================