Common use of Mixed and Shared Funding Clause in Contracts

Mixed and Shared Funding. Shares of the HLS Funds may be sold to insurance company separate accounts to serve as the underlying investments for both variable annuity contracts and variable life insurance policies, a practice known as “mixed and shared funding.” Pursuant to an order obtained from the U.S. Securities and Exchange Commission dated November 1, 2000 (File No. 812-11924) (hereinafter “Exemptive Order”), shares of the HLS Funds may also be sold to any trust, plan, account, contract or annuity described in Sections 401(a), 403(a), 403(b), 408(a), 408(b), 414(d), 457(b), 408(k), 501(c)(18) of the Internal Revenue Code of 1986, as amended, or any other trust, plan account, contract or annuity that is determined to be within the scope of U.S. Treasury Regulation 1.817-5(f)(3)(iii) (hereinafter “Qualified Plans”).