FORM OF ORGANIZATIONAL EXPENSE REIMBURSEMENT AGREEMENT
Cash Accumulation Trust
Active Short-Term Fund
PIMCO Advisors L.P.
This Agreement is made as of this ___ day of ______, 1997, by and between Cash
Accumulation Trust (the "Trust") on behalf of its Active Short-Term Fund (the
"Fund") and PIMCO Advisors L.P. ("PALP").
WHEREAS, the Trust is registered as an open-end management series investment
company under the Investment Company Act of 1940 and is in the process of
registering and organizing the Fund;
WHEREAS, there have been and will be certain organizational expenses incurred as
a part of such registration and organization, which are properly expenses of the
Fund, that have been and will in the future be paid by PALP by reason of the
fact that the Fund was not or will not be capitalized when such expenses
otherwise became due and payable;
WHEREAS, such organizational expenses include expenses necessary to organize and
establish the Fund and to create the necessary relationships and legal
qualifications to enable it to commence business and operations, including, but
not limited to, such expenses as outside legal counsel's fees and independent
public accountant's fees (such expenses are hereinafter referred to as
"Organizational Expenses");
NOW, THEREFORE, in consideration of the premises and mutual covenants herein
contained, it is agreed as follows:
1. Upon the issuance and sale of shares of the Fund to the public, the Trust
shall reimburse and pay to PALP up to $50,000 of the amount expended by PALP for
Organizational Expenses for the Fund.
2. Such reimbursement shall be paid by the Trust, out of the assets of the
Fund, to PALP upon demand, without interest, and in no event later than five
years from the commencement of operations of the Fund. Upon demand for payment,
PALP shall present copies of invoices or receipts, and copies of canceled checks
or other evidence of payment by PALP of the Organizational Expenses for which it
is demanding reimbursement.
3. A copy of the Agreement and Declaration of Trust of the Trust, together with
all amendments thereteo, is on file with the Secretary of The Commonwealth of
Massachusetts and notice is hereby given that this instrument is executed on
behalf of the Trustees of the Trust as Trustees and not individually, and the
obligations of or arising out of this instrument are not binding upon any of the
Trustees or shareholders individually but are binding only upon the assets and
property of the Fund.
PIMCO ADVISORS L.P.
By:_______________________
Title:
CASH ACCUMULATION TRUST
By:_______________________
Title:
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