PARTICIPATION AGREEMENT
BY AND AMONG
AIM VARIABLE INSURANCE FUNDS, INC.
A I M DISTRIBUTORS, INC.,
AND
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY,
ON BEHALF OF ITSELF AND
ITS SEPARATE ACCOUNTS
TABLE OF CONTENTS
DESCRIPTION PAGE
----------- ----
Section 1. Available Funds ....................................................2
1.1 Availability . ............................................................2
1.2 Addition, Deletion or Modification of Funds ...............................2
1.3 No Sales to the General Public ............................................2
Section 2. Processing Transactions ............................................2
2.1 Timely Pricing and Orders ..............................................2
2.2 Timely Payments ........................................................3
2.3 Applicable Price .......................................................3
2.4 Dividends and Distributions ............................................4
2.5 Book Entry .............................................................4
Section 3. Costs and Expenses .................................................4.
3.1 General ...................................................................4
3.2 Parties To Cooperate ......................................................4
Section 4. Legal Compliance ...................................................4
4.1 Tax Laws ...............................................................4
4.2 Insurance and Certain Other Laws .......................................7
4.3 Securities Laws ........................................................7
4.4 Notice of Certain Proceedings and Other Circumstances ..................8
4.5 LIFE COMPANY To Provide Documents; Information About AVIF ............. 9
4.6 AVIF To Provide Documents; Information About LIFE COMPANY .............10
Section 5. Mixed and Shared Funding ..........................................11
5.1 General ...............................................................11
5.2 Disinterested Directors ...............................................12
5.3 Monitoring for Material Irreconcilable Conflicts ......................12
5.4 Conflict Remedies .....................................................13
5.5 Notice to LIFE COMPANY ................................................14
5.6 Information Requested by Board of Directors ...........................14
5.7 Compliance with SEC Rules .............................................14
5.8 Other Requirements ....................................................14
Section 6. Termination .......................................................15
6.1 Events of Termination .................................................15
6.2 Notice Requirement for Termination ....................................16
6.3 Funds To Remain Available .............................................16
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DESCRIPTION PAGE
----------- ----
6.4 Survival of Warranties and Indemnifications ..............................16
6.5 Continuance of Agreement for Certain Purposes ............................16
Section 7. Parties To Cooperate Respecting Termination .......................17
Section 8. Assignment ........................................................17
Section 9. Notices ...........................................................17
Section 10. Voting Procedures ................................................18
Section 11. Foreign Tax Credits ..............................................18
Section 12. Indemnification ..................................................18
12.1 Of AVIF and AIM by LIFE COMPANY .........................................18
12.2 Of LIFE COMPANY by AVIF and AIM .........................................20
12.3 Effect of Notice ........................................................23
12.4 Successors ..............................................................23
Section 13. Applicable Law ...................................................23
Section 14. Execution in Counterparts ........................................23
Section 15. Severability .....................................................23
Section 16. Rights Cumulative ................................................24
Section 17. Headings .........................................................24
Section 18. Confidentiality ..................................................24
Section 19. Trademarks and Fund Names ........................................25
Section 20. Parties to Cooperate .............................................26
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PARTICIPATION AGREEMENT
THIS AGREEMENT, made and entered into as of the __ day of __________,
1998 ("Agreement"), by and among AIM Variable Insurance Funds, Inc., a
Maryland
corporation ("AVIF"), A I M Distributors, Inc., a Delaware corporation ("AIM"),
The Lincoln National Life Insurance Company, an Indiana life insurance company
("LIFE COMPANY"), on behalf of itself and each of its segregated asset accounts
listed in Schedule A hereto, as the parties hereto may amend from time to time
(each, an "Account," and collectively, the "Accounts"); and the principal
underwriter of the Accounts and the Contracts (collectively, the "Parties").
WITNESSETH THAT:
WHEREAS, AVIF is registered with the Securities and Exchange Commission
("SEC") as an open-end management investment company under the Investment
Company Act of 1940, as amended (the "1940 Act"); and
WHEREAS, AVIF currently consists of thirteen separate series ("Series"),
shares ("Shares") of each of which are registered under the Securities Act of
1933, as amended (the " 1933 Act") and are currently sold to one or more
separate accounts of life insurance companies to fund benefits under variable
annuity contracts and variable life insurance policies; and
WHEREAS, AVIF will make Shares of each Series listed on Schedule A hereto
as the Parties hereto may amend from time to time (each a "Fund"; reference
herein to "AVIF" includes reference to each Fund, to the extent the context
requires) available for purchase by the Accounts; and
WHEREAS, LIFE COMPANY will be the issuer of certain variable annuity
contracts and variable life insurance contracts ("Contracts" or Policies") as
set forth on Schedule A hereto, as the Parties hereto may amend from time to
time, which Contracts, if required by applicable law, will be registered under
the 1933 Act; and
WHEREAS, LIFE COMPANY will fund the Contracts through the Accounts, each
of which may be divided into two or more subaccounts ("Subaccounts"; reference
herein to an "Account" includes reference to each Subaccount thereof to the
extent the context requires); and
WHEREAS, LIFE COMPANY will serve as the depositor of the Accounts, each
of which is registered as a unit investment trust investment company under the
1940 Act (or exempt therefrom), and the security interests deemed to be issued
by the Accounts under the Policies will be registered as securities under the
1933 Act (or exempt therefrom); and
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WHEREAS, to the extent permitted by applicable insurance laws and
regulations, LIFE COMPANY intends to purchase Shares in one or more of the Funds
on behalf of the Accounts to fund the Policies; and
WHEREAS, LIFE COMPANY is a broker-dealer registered with the SEC under
the Securities Exchange Act of 1934 (" 1934 Act") and a member in good standing
of the National Association of Securities Dealers, Inc. ("NASD");
NOW, THEREFORE, in consideration of the mutual benefits and promises
contained herein, the Parties hereto agree as follows:
SECTION 1. AVAILABLE FUNDS
1.1 AVAILABILITY.
AVIF will make Shares of each Fund available to LIFE COMPANY for purchase
and redemption at net asset value and with no sales charges, subject to the
terms and conditions of this Agreement. The Board of Directors of AVIF may
refuse to sell Shares of any Fund to any person, or suspend or terminate the
offering of Shares of any Fund if such action is required by law or by
regulatory authorities having jurisdiction or if, in the sole discretion of the
Directors acting in good faith and in light of their fiduciary duties under
federal and any applicable state laws, such action is deemed in the best
interests of the shareholders of such Fund.
1.2 ADDITION, DELETION OR MODIFICATION OF FUNDS.
The Parties hereto may agree, from time to time, to add other Funds to
provide additional funding media for the Policies, or to delete, combine, or
modify existing Funds, by amending Schedule A hereto. Upon such amendment to
Schedule A, any applicable reference to a Fund, AVIF, or its Shares herein shall
include a reference to any such additional Fund or Fund resulting from a
deletion or modification. Schedule A, as amended from time to time, is
incorporated herein by reference and is a part hereof.
1.3 NO SALES TO THE GENERAL PUBLIC.
AVIF represents and warrants that no Shares of any Fund have been or will
be sold to the general public.
SECTION 2. PROCESSING TRANSACTIONS
2.1 TIMELY PRICING AND ORDERS.
(a) AVIF or its designated agent will use its best efforts to provide
LIFE COMPANY with the net asset value per Share for each Fund by 6:00 p.m.
Central Time on each Business Day.
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As used herein, "Business Day" shall mean any day on which (i) the New York
Stock Exchange is open for regular trading and (ii) AVIF calculates the Fund's
net asset value.
(b) LIFE COMPANY will use the data provided by AVIF each Business Day
pursuant to paragraph (a) immediately above to calculate Account unit values and
to process transactions that receive that same Business Day's Account unit
values. LIFE COMPANY will perform such Account processing the same Business Day,
and will place corresponding orders to purchase or redeem Shares with AVIF by
9:00 a.m. Central Time the following Business Day; PROVIDED, however, that AVIF
shall provide additional time to LIFE COMPANY in the event that AVIF is unable
to meet the 6:00 p.m. time stated in paragraph (a) immediately above. Such
additional time shall be equal to the additional time that AVIF takes to make
the net asset values available to LIFE COMPANY.
(c) With respect to payment of the purchase price by LIFE COMPANY and of
redemption proceeds by AVIF, LIFE COMPANY and AVIF shall net purchase and
redemption orders with respect to each Fund and shall transmit one net payment
per Fund in accordance with Section 2.2, below.
(d) If AVIF provides materially incorrect Share net asset value
information (as determined under SEC guidelines), LIFE COMPANY shall be entitled
to an adjustment to the number of Shares purchased or redeemed to reflect the
correct net asset value per Share. Any material error in the calculation or
reporting of net asset value per Share, dividend or capital gain information
shall be reported promptly upon discovery to LIFE COMPANY.
2.2 TIMELY PAYMENTS.
LIFE COMPANY will wire payment for net purchases to a custodial account
designated by AVIF by 1:00 p.m. Central Time on the same day as the order for
Shares is placed, to the extent practicable. AVIF will wire payment for net
redemptions to an account designated by LIFE COMPANY by 1:00 p.m. Central Time
on the same day as the Order is placed, to the extent practicable, but in any
event within five (5) calendar days after the date the order is placed in order
to enable LIFE COMPANY to pay redemption proceeds within the time specified in
Section 22(e) of the 1940 Act or such shorter period of time as may be required
by law.
2.3 APPLICABLE PRICE.
(a) Share purchase payments and redemption orders that result from
purchase payments, premium payments, surrenders and other transactions under
Policies (collectively, "Policy transactions") and that LIFE COMPANY receives
prior to the close of regular trading on the New York Stock Exchange on a
Business Day will be executed at the net asset values of the appropriate Funds
next computed after receipt by AVIF or its designated agent of the orders. For
purposes of this Section 23(a), LIFE COMPANY shall be the designated agent of
AVIF for receipt of orders relating to Policy transactions on each Business Day
and receipt by such designated agent shall constitute receipt by AVIF; PROVIDED
that AVIF receives notice of such orders by 9:00 a.m. Central Time on the next
following Business Day or such later time as computed in accordance with Section
2.1 (b) hereof.
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(b) All other Share purchases and redemptions by LIFE COMPANY will be
effected at the net asset values of the appropriate Funds next computed after
receipt by AVIF or its designated agent of the order therefor, and such orders
will be irrevocable.
2.4 DIVIDENDS AND DISTRIBUTIONS.
AVIF will furnish notice by wire or telephone (followed by written
confirmation) on or prior to the payment date to LIFE COMPANY of any income
dividends or capital gain distributions payable on the Shares of any Fund. LIFE
COMPANY hereby elects to reinvest all dividends and capital gains distributions
in additional Shares of the corresponding Fund at the ex-dividend date net asset
values until LIFE COMPANY otherwise notifies AVIF in writing, it being agreed by
the Parties that the ex-dividend date and the payment date with respect to any
dividend or distribution will be the same Business Day. LIFE COMPANY reserves
the right to revoke this election and to receive all such income dividends and
capital gain distributions in cash.
2.5 BOOK ENTRY.
Issuance and transfer of AVIF Shares will be by book entry only. Stock
certificates will not be issued to LIFE COMPANY. Shares ordered from AVIF will
be recorded in an appropriate title for LIFE COMPANY, on behalf of its Account.
SECTION 3. COSTS AND EXPENSES
3.1 GENERAL.
Except as otherwise specifically provided in Schedule C, attached hereto
and made a part hereof, each Party will bear all expenses incident to its
performance under this Agreement.
3.2 PARTIES TO COOPERATE.
Each Party agrees to cooperate with the others, as applicable, in
arranging to print, mail and/or deliver, in a timely manner, combined or
coordinated prospectuses or other materials of AVIF and the Accounts.
SECTION 4. LEGAL COMPLIANCE
4.1 TAX LAWS.
(a) AVIF represents and warrants that each Fund is currently qualified as
a regulated investment company ("RIC") under Subchapter M of the Internal
Revenue Code of 1986, as amended (the "Code"), and represents that it will use
its best efforts to qualify and to maintain qualification of each Fund as a RIC.
AVIF will notify LIFE COMPANY immediately upon having a reasonable basis for
believing that a Fund has ceased to so qualify or that it might not so qualify
in the future.
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(b) AVIF represents that it will use its best efforts to comply and to
maintain each Fund's compliance with the diversification requirements set forth
in Section 817(h) of the Code and Section 1.817-5(b) of the regulations under
the Code. AVIF will notify LIFE COMPANY immediately upon having a reasonable
basis for believing that a Fund has ceased to so comply or that a Fund might not
so comply in the future. In the event of a breach of this Section 4. 1 (b) by
AVIF, it will take all reasonable steps to adequately diversify the Fund so as
to achieve compliance within the grace period afforded by Section 1.817-5 of the
regulations under the Code.
(c) LIFE COMPANY agrees that if the Internal Revenue Service ("IRS")
asserts in writing in connection with any governmental audit or review of LIFE
COMPANY or, to LIFE COMPANY's knowledge, of any Participant, that any Fund has
failed to comply with the diversification requirements of Section 817(h) of the
Code or LIFE COMPANY otherwise becomes aware of any facts that could give rise
to any claim against AVIF or its affiliates as a result of such a failure or
alleged failure:
(i) LIFE COMPANY shall promptly notify AVIF of such assertion or
potential claim (subject to the Confidentiality provisions of Section 18
as to any Participant);
(ii) LIFE COMPANY shall consult with AVIF as to how to minimize any
liability that may arise as a result of such failure or alleged
failure;
(iii) LIFE COMPANY shall use its best efforts to minimize any liability
of AVIF or its affiliates resulting from such failure, including,
without limitation, demonstrating, pursuant to Treasury
Regulations Section 1.817-5(a)(2), to the Commissioner of the IRS
that such failure was inadvertent;
(iv) LIFE COMPANY shall permit AVIF, its affiliates and their legal and
accounting advisors to participate in any conferences, settlement
discussions or other administrative or judicial proceeding or
contests (including judicial appeals thereof) with the IRS, any
Participant or any other claimant regarding any claims that could
give rise to liability to AVIF or its affiliates as a result of
such a failure or alleged failure; PROVIDED, however, that LIFE
COMPANY will retain control of the conduct of such conferences
discussions, proceedings, contests or appeals;
(v) any written materials to be submitted by LIFE COMPANY to the IRS,
any Participant or any other claimant in connection with any of
the foregoing proceedings or contests (including, without
limitation, any such materials to be submitted to the IRS pursuant
to Treasury Regulations Section 1.817-5(a)(2)), (a) shall be
provided by LIFE COMPANY to AVIF (together with any supporting
information or analysis); subject to the confidentiality
provisions of Section 18, at least ten (10) business days or such
shorter period to which the Parties hereto agree prior to the day
on which such proposed materials are to be submitted, and (b)
shall not be submitted by LIFE
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COMPANY to any such person without the express written consent of
AVIF which shall not be unreasonably withheld;
(vi) LIFE COMPANY shall provide AVIF or its affiliates and their
accounting and legal advisors with such cooperation as AVIF shall
reasonably request (including, without limitation, by permitting
AVIF and its accounting and legal advisors to review the relevant
books and records of LIFE COMPANY) in order to facilitate review
by AVIF or its advisors of any written submissions provided to it
pursuant to the preceding clause or its assessment of the validity
or amount of any claim against its arising from such a failure or
alleged failure;
(vii) LIFE COMPANY shall not with respect to any claim of the IRS or any
Participant that would give rise to a claim against AVIF or its
affiliates (a) compromise or settle any claim, (b) accept any
adjustment on audit, or (c) forego any allowable administrative or
judicial appeals, without the express written consent of AVIF or
its affiliates, which shall not be unreasonably withheld, PROVIDED
that LIFE COMPANY shall not be required, after exhausting all
administrative penalties, to appeal any adverse judicial decision
unless AVIF or its affiliates shall have provided an opinion of
independent counsel to the effect that a reasonable basis exists
for taking such appeal; and PROVIDED FURTHER that the costs of any
such appeal shall be borne equally by the Parties hereto; and
(viii) AVIF and its affiliates shall have no liability as a result of
such failure or alleged failure if LIFE COMPANY fails to comply
with any of the foregoing clauses (i) through (vii), and such
failure could be shown to have materially contributed to the
liability.
Should AVIF or any of its affiliates refuse to give its written consent
to any compromise or settlement of any claim or liability hereunder, LIFE
COMPANY may, in its discretion, authorize AVIF or its affiliates to act in the
name of LIFE COMPANY in, and to control the conduct of, such conferences,
discussions, proceedings, contests or appeals and all administrative or judicial
appeals thereof, and in that event AVIF or its affiliates shall bear the fees
and expenses associated with the conduct of the proceedings that it is so
authorized to control; PROVIDED, that in no event shall LIFE COMPANY have any
liability resulting from AVIF's refusal to accept the proposed settlement or
compromise with respect to any failure caused by AVIF. As used in this
Agreement, the term "affiliates" shall have the same meaning as "affiliated
person" as defined in Section 2(a)(3) of the 1940 Act.
(d) XXX COMPANY represents and warrants that the Contracts currently are
and will be treated as annuity contracts or life insurance policies under
applicable provisions of the Code and that it will use its best efforts to
maintain such treatment; LIFE COMPANY will notify AVIF immediately upon having a
reasonable basis for believing that any of the Contracts have ceased to be so
treated or that they might not be so treated in the future.
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(e) LIFE COMPANY represents and warrants that each Account is a
"segregated asset account" and that interests in each Account are offered
exclusively through the purchase of or transfer into a "variable contract,"
within the meaning of such terms under Section 817 of the Code and the
regulations thereunder. LIFE COMPANY will use its best efforts to continue to
meet such definitional requirements, and it will notify AVIF immediately upon
having a reasonable basis for believing that such requirements have ceased to be
met or that they might not be met in the future.
4.2 INSURANCE AND CERTAIN OTHER LAWS.
(a) AVIF will use its best. efforts to comply with any applicable state
insurance laws or regulations, to the extent specifically requested in writing
by LIFE COMPANY, including, the furnishing of information not otherwise
available to LIFE COMPANY which is required by state insurance law to enable
LIFE COMPANY to obtain the authority needed to issue the Contracts in any
applicable state.
(b) LIFE COMPANY represents and warrants that (i) it is an insurance
company duly organized, validly existing under the laws of the State of Indiana
and has full corporate power, authority and legal right to execute, deliver and
perform its duties and comply with its obligations under this Agreement, (ii) it
has legally and validly established and maintains each Account as a segregated
asset account under Indiana Insurance Law and the regulations thereunder, and
(iii) the Contracts comply in all material respects with all other applicable
federal and state laws and regulations.
(c) AVIF represents and warrants that it is a corporation duly organized,
validly existing, and in good standing under the laws of the State of
Maryland
and has full power, authority, and legal right to execute, deliver, and perform
its duties and comply with its obligations under this Agreement.
(d) AIM represents and warrants that it is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware
and has full power, authority and right to execute, deliver and perform its
duties and comply with its obligations under this agreement.
4.3 SECURITIES LAWS.
(a) LIFE COMPANY represents and warrants that (i) interests in each
Account pursuant to the Contracts will be registered under the 1933 Act to the
extent required by the 1933 Act, (ii) the Contracts will be duly authorized for
issuance and sold in compliance with all applicable federal and state laws,
including, without limitation, the 1933 Act, the 1934 Act, the 1940 Act and
Indiana law, (iii) each Account is and will remain registered under the 1940
Act, to the extent required by the
1940 Act, (iv) each Account does and will comply in all material respects with
the requirements of the 1940 Act and the rules thereunder, to the extent
required; (v) each Account's 1933 Act registration statement relating to the
Contracts (to the extent required), together with any amendments thereto, will
at all times comply in all material respects with the requirements of the
1933 Act and the rules thereunder, (vi) LIFE COMPANY will amend any registration
statement for its Contracts under the 1933 Act and for its Accounts under the
1940 Act from time to time to the
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extent required in order to effect the continuous offering of its Policies or as
may otherwise be required by applicable law, and (vii) each Account Prospectus
will at all times comply in all material respects with the requirements of the
1933 Act and the rules thereunder.
(b) AVIF represents and warrants that (i) Shares sold pursuant to this
Agreement will be registered under the 1933 Act to the extent required by the
1933 Act and duly authorized for issuance and sold in compliance with
Maryland
law, (ii) AVIF is and will remain registered under the 1940 Act to the extent
required by the 1940 Act, (iii) AVIF will amend the registration statement for
its Shares under the 1933 Act and itself under the 1940 Act from time to time as
required in order to effect the continuous offering of its Shares, (iv) AVIF
does and will comply in all material respects with the requirements of the 1940
Act and the rules thereunder, (v) AVIFs 1933 Act registration statement,
together with any amendments thereto, will at all times comply in all material
respects with the requirements of the 1933 Act and rules thereunder, and (vi)
AVIF's Prospectus will at all times comply in all material respects with the
requirements of the 1933 Act and the rules thereunder.
(c) AVIF will at its expense register and qualify its Shares for sale in
accordance with the laws of any state or other jurisdiction if and to the extent
reasonably deemed advisable by AVIF.
(d) AVIF currently does not intend to make any payments to finance
distribution expenses pursuant to Rule 12b- I under the 1940 Act or otherwise,
although it reserves the right to make such payments in the future. To the
extent that it decides to finance distribution expenses pursuant to Rule 12b-1,
AVIF undertakes to have its Board of Directors, a majority of whom are not
"interested" persons of the Fund, formulate and approve any plan under Rule
l2b-1 to finance distribution expenses.
(e) AVIF represents and warrants that all of its trustees, officers,
employees, investment advisers, and other individuals/entities having access to
the funds and/or securities of the Fund are and continue to be at all times
covered by a blanket fidelity bond or similar coverage for the benefit of the
Fund in an amount not less than the minimal coverage as required currently by
Rule 17g-(I) of the 1940 Act or related provisions as may be promulgated from
time to time. The aforesaid bond includes coverage for larceny and embezzlement
and is issued by a reputable bonding company.
4.4 NOTICE OF CERTAIN PROCEEDINGS AND OTHER CIRCUMSTANCES.
(a) AVIF will immediately notify LIFE COMPANY of (i) the issuance by any
court or regulatory body of any stop order, cease and desist order, or other
similar order with respect to AVIF's registration statement under the 1933 Act
or AVIF Prospectus, (ii) any request by the SEC for any amendment to such
registration statement or AVIF Prospectus that may affect the offering of Shares
of AVIF, (iii) the initiation of any proceedings against AVIF, AIM or the
investment adviser to AVIF for that purpose or for any other purpose relating to
the registration or offering of AVIF's Shares, or (iv) any other action or
circumstances that may prevent the lawful offer or sale of Shares of any Fund in
any state or jurisdiction, including, without limitation, any circumstances in
which (a) such Shares are not registered and, in all material respects, issued
and sold in accordance with applicable state and federal law, or (b) such law
precludes the use of such Shares as an underlying investment medium of the
Policies issued or to be issued by LIFE COMPANY. AVIF will make every reasonable
effort to prevent the issuance, with respect to any Fund, of any such stop
8
order, cease and desist order or similar order and, if any such order is issued,
to obtain the lifting thereof at the earliest possible time.
(b) LIFE COMPANY will immediately notify AVIF of (i) the issuance by any
court or regulatory body of any stop order, cease and desist order, or other
similar order with respect to each Account's registration statement under the
1933 Act relating to the Policies or each Account Prospectus, (ii) any request
by the SEC for any amendment to such registration statement or Account
Prospectus that may affect the offering of Shares of AVIF, (iii) the initiation
of any proceedings for that purpose or for any other purpose relating to the
registration or offering of each Account's interests pursuant to the Policies,
or (iv) any other action or circumstances that may prevent the lawful offer or
sale of said interests in any state or jurisdiction, including, without
limitation, any circumstances in which said interests are not registered and, in
all material respects, issued and sold in accordance with applicable state and
federal law. LIFE COMPANY will make every reasonable effort to prevent the
issuance of any such stop order, cease and desist order or similar order and, if
any such order is issued, to obtain the lifting thereof at the earliest possible
time.
4.5 LIFE COMPANY TO PROVIDE DOCUMENTS; INFORMATION ABOUT AVIF
(a) LIFE COMPANY will provide to AVIF or its designated agent at least
one (1) complete copy of all SEC registration statements, Account Prospectuses,
reports, any preliminary and final voting instruction solicitation material,
applications for exemptions, requests for no-action letters, and all amendments
to any of the above, that relate to each Account or the Contracts and to one (1)
or more Funds, within twenty (20) calendar days of the filing of such document
with the SEC or other regulatory authorities.
(b) LIFE COMPANY will provide to AVIF or its designated agent at least
one (1) complete copy of each piece of sales literature or other promotional
material in which AVIF or any of its affiliates is named, at least ten (10)
Business Days prior to its use or such shorter period as the Parties hereto may,
from time to time, agree upon. No such material shall be used if AVIF or its
designated agent objects to such use within five (5) Business Days after receipt
of such material or such shorter period as the Parties hereto may, from time to
time, agree upon. AVIF hereby designates AIM as the entity to receive such sales
literature, until such time as AVIF appoints another designated agent by giving
notice to LIFE COMPANY in the manner required by Section 9 hereof.
(c) Neither LIFE COMPANY nor any of its affiliates, will give any
information or make any representations or statements on behalf of or concerning
AVIF or its affiliates in connection with the sale of the Policies other than
(i) the information or representations contained in the registration statement,
including the AVIF Prospectus contained therein, relating to Shares, as such
registration statement and AVIF Prospectus may be amended from time to time; or
(ii) in reports or proxy materials for AVIF; or (iii) in published reports for
AVIF that are in the public domain and approved by AVIF for distribution; or
(iv) in sales literature or other promotional material approved by AVIF, except
with the express written permission of AVIF or AIM.
(d) LIFE COMPANY shall adopt and implement procedures reasonably designed
to ensure that information concerning AVIF and its affiliates that is intended
for use only by brokers
9
or agents selling the Policies (I.E., information that is not intended for
distribution to Participants) ("broker only materials") is so used, and neither
AVIF nor any of its affiliates shall be liable for any losses, damages or
expenses relating to the improper use of such broker only materials.
(e) For the purposes of this Section 4.5, the phrase "sales literature or
other promotional material" includes, but is not limited to, advertisements
(such as material published, or designed for use in, a newspaper, magazine, or
other periodical, radio, television, telephone or tape recording, videotape
display, signs or billboards, motion pictures, or other public media, (E.G.,
on-line networks such as the Internet or other electronic messages), sales
literature (I.E., any written communication distributed or made generally
available to customers or the public, including brochures, circulars, research
reports, market letters, form letters, seminar texts, reprints or excerpts of
any other advertisement, sales literature, or published article), educational or
training materials or other communications distributed or made generally
available to some or all agents or employees, registration statements,
prospectuses, statements of additional information, shareholder reports, and
proxy materials and any other material constituting sales literature or
advertising under the NASD rules, the 1933 Act or the 0000 Xxx.
4.6 AVIF TO PROVIDE DOCUMENTS; INFORMATION ABOUT LIFE COMPANY.
(a) AVIF will provide to LIFE COMPANY at least one (1) complete copy of
all SEC registration statements, AVIF Prospectuses, reports, any preliminary and
final proxy material, applications for exemptions, requests for no-action
letters, and all amendments to any of the above, that relate to one (1) or more
Funds, within twenty (20) calendar days of the filing of such document with the
SEC or other regulatory authorities.
(b) AVIF will provide to LIFE COMPANY camera ready copies of all AVIF
prospectuses relating to the Funds and printed copies, in an amount specified by
LIFE COMPANY, of AVIF statements of additional information, proxy materials,
periodic reports to shareholders and other materials required by law to be sent
to Participants who have allocated any Contract value to a Fund. AVIF will
provide such copies to LIFE COMPANY in a timely manner so as to enable LIFE
COMPANY, as the case may be, to print and distribute such materials within the
time required by law to be furnished to Participants.
(c) AVIF will provide to LIFE COMPANY or its designated agent at least
one (1) complete copy of each piece of sales literature or other promotional
material in which LIFE COMPANY, or any of its respective affiliates is named, or
that refers to the Policies, at least ten (10) Business Days prior to its use or
such shorter period as the Parties hereto may, from time to time, agree upon. No
such material shall be used if LIFE COMPANY or its designated agent objects to
such use within five (5) Business Days after receipt of such material or such
shorter period as the Parties hereto may, from time to time, agree upon. LIFE
COMPANY shall receive all such sales literature until such time as it appoints a
designated agent by giving notice to AVIF in the manner required by Section 9
hereof.
(d) Neither AVIF nor any of its affiliates will give any information or
make any representations or statements on behalf of or concerning LIFE COMPANY,
each Account, or the Contracts other than (i) the information or representations
contained- in the registration statement,
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including each Account Prospectus contained therein, relating to the Contracts,
as such registration statement and Account Prospectus may be amended from time
to time; or (ii) in published reports for the Account or the Contracts that are
in the public domain and approved by LIFE COMPANY for distribution; or (iii) in
sales literature or other promotional material approved by LIFE COMPANY or its
affiliates, except with the express written permission of LIFE COMPANY.
(e) AIM shall adopt and implement procedures reasonably designed to
ensure that information concerning LIFE COMPANY, and its respective affiliates
that is intended for use only by brokers or agents selling the Policies (I.E.,
information that is not intended for distribution to Participants) ("broker only
materials") is so used, and neither LIFE COMPANY, nor any of its respective
affiliates shall be liable for any losses, damages or expenses relating to the
improper use of such broker only materials.
(f) For purposes of this Section 4.6, the phrase "sales literature or
other promotional material" includes, but is not limited to, advertisements
(such as material published, or designed for use in, a newspaper, magazine, or
other periodical, radio, television, telephone or tape recording, videotape
display, signs or billboards, motion pictures, or other public media, (E.G.,
on-line networks such as the Internet or other electronic messages), sales
literature (I.E., any written communication distributed or made generally
available to customers or the public, including brochures, circulars, research
reports, market letters, form letters, seminar texts, reprints or excerpts of
any other advertisement, sales literature, or published article), educational or
training materials or other communications distributed or made generally
available to some or all agents or employees, registration statements,
prospectuses, statements of additional information, shareholder reports, and
proxy materials and any other material constituting sales literature or
advertising under the NASD rules, the 1933 Act or the 1940 Act.
SECTION 5. MIXED AND SHARED FUNDING
5.1 GENERAL.
The SEC has granted an order to AVIF exempting it from certain provisions
of the 1940 Act and rules thereunder so that AVIF may be available for
investment by certain other entities, including, without limitation, separate
accounts funding variable annuity contracts or variable life insurance policies,
separate accounts of insurance companies unaffiliated with LIFE COMPANY, and
trustees of qualified pension and retirement plans (collectively, "Mixed and
Shared Funding"). The Parties recognize that the SEC has imposed terms and
conditions for such orders that are substantially identical to many of the
provisions of this Section 5. Sections 5.2 through 5.8 below shall apply
pursuant to such an exemptive order granted to AVER AVIF hereby notifies LIFE
COMPANY that AVIF has implemented Mixed and Shared Funding and it may be
appropriate to include in the prospectus pursuant to which a Contract is offered
disclosure regarding the potential risks of Mixed and Shared Funding.
11
5.2 DISINTERESTED DIRECTORS.
AVIF agrees that its Board of Directors shall at all times consist of
directors a majority of whom (the "Disinterested Directors") are not interested
persons of AVIF within the meaning of Section 2(a)(19) of the 1940 Act and the
rules thereunder and as modified by any applicable orders of the SEC, except
that if this condition is not met by reason of the death, disqualification, or
bona fide resignation of any director, then the operation of this condition
shall be suspended (a) for a period of forty-five (45) days if the vacancy or
vacancies may be filled by the Board;(b) for a period of sixty (60) days if a
vote of shareholders is required to fill the vacancy or vacancies; or (c) for
such longer period as the SEC may prescribe by order upon application.
5.3 MONITORING FOR MATERIAL IRRECONCILABLE CONFLICTS.
AVIF agrees that its Board of Directors will monitor for the existence of
any material irreconcilable conflict between the interests of the Participants
in all separate accounts of life insurance companies utilizing AVIF
("Participating Insurance Companies"), including each Account, and participants
in all qualified retirement and pension plans investing in AVIF ("Participating
Plans"). LIFE COMPANY agrees to inform the Board of Directors of AVIF of the
existence of or any potential for any such material irreconcilable conflict of
which it is aware. The concept of a "material irreconcilable conflict" is not
defined by the 1940 Act or the rules thereunder, but the Parties recognize that
such a conflict may arise for a variety of reasons, including, without
limitation:
(a) an action by any state insurance or other regulatory authority;
(b) a change in applicable federal or state insurance, tax or
securities laws or regulations, or a public ruling, private letter ruling,
no-action or interpretative letter, or any similar action by insurance, tax or
securities regulatory authorities;
(c) an administrative or judicial decision in any relevant proceeding;
(d) the manner in which the investments of any Fund are being managed;
(e) a difference in voting instructions given by variable annuity
contract and variable life insurance contract Participants or by Participants of
different Participating Insurance Companies;
(f) a decision by a Participating Insurance Company to disregard the
voting instructions of Participants; or
(g) a decision by a Participating Plan to disregard the voting
instructions of Plan participants.
Consistent with the SECs requirements in connection with exemptive orders
of the type referred to in Section 5.1 hereof, LIFE COMPANY will assist the
Board of Directors in carrying out its responsibilities by providing the Board
of Directors, upon their request, with all information reasonably necessary for
the Board of Directors to consider any issue raised, including information as to
a decision by LIFE COMPANY to disregard voting instructions of Participants.
LIFE
12
COMPANY's responsibilities in connection with the foregoing shall be carried out
with a view only to the interests of Participants.
5.4 CONFLICT REMEDIES.
(a) It is agreed that if it is determined by a majority of the members of
the Board of Directors or a majority of the Disinterested Directors that a
material irreconcilable conflict exists, LIFE COMPANY will, if it is a
Participating Insurance Company for which a material irreconcilable conflict is
relevant, at its own expense and to the extent reasonably practicable (as
determined by a majority of the Disinterested Directors), take whatever steps
are necessary to remedy or eliminate the material irreconcilable conflict, which
steps may include, but are not limited to:
(i) withdrawing the assets allocable to some or all of the Accounts
from AVIF or any Fund and reinvesting such assets in a different
investment medium, including, but not limited to, another Fund of
AVIF, or submitting the question whether such segregation should
be implemented to a vote of all affected Participants and, as
appropriate, segregating the assets of any particular group (E.G.,
annuity Participants, life insurance Participants or all
Participants) that votes in favor of such segregation, or offering
to the affected Participants the option of making such a change;
and
(ii) establishing a new registered investment company of the type
defined as a "management company" in Section 4(3) of the 1940 Act
or a new separate account that is operated as a management
company.
(b) If the material irreconcilable conflict arises because of LIFE COMPANY's
decision
to disregard Participant voting instructions and that decision represents a
minority position or would preclude a majority vote, LIFE COMPANY may be
required, at AVIF's election, to withdraw each Account's investment in AVIF or
any Fund. No charge or penalty will be imposed as a result of such withdrawal.
Any such withdrawal must take place within six (6) months after AVIF gives
notice to LIFE COMPANY that this provision is being implemented, and until such
withdrawal AVIF shall continue to accept and implement orders by LIFE COMPANY
for the purchase and redemption of Shares of AVIF.
(c) If a material irreconcilable conflict arises because a particular
state insurance regulator's decision applicable to LIFE COMPANY conflicts with
the majority of other state regulators, then LIFE COMPANY will withdraw each
Account's investment in AVIF within six (6) months after AVIF's Board of
Directors informs LIFE COMPANY that it has determined that such decision has
created a material irreconcilable conflict, and until such withdrawal AVIF shall
continue to accept and implement orders by LIFE COMPANY for the purchase and
redemption of Shares of AVIF. No charge or penalty will be imposed as a result
of such withdrawal.
(d) LIFE COMPANY agrees that any remedial action taken by it in resolving
any material irreconcilable conflict will be carried out at its expense and with
a view only to the interests of Participants.
13
(e) For purposes hereof, a majority of the Disinterested Directors will
determine whether or not any proposed action adequately remedies any material
irreconcilable conflict. In no event, however, will AVIF or any of its
affiliates be required to establish a new funding medium for any Contracts. LIFE
COMPANY will not be required by the terms hereof to establish a new funding
medium for any Contracts if an offer to do so has been declined by vote of a
majority of Participants materially adversely affected by the material
irreconcilable conflict.
5.5 NOTICE TO LIFE COMPANY.
AVIF will promptly make known in writing to LIFE COMPANY the Board of
Directors' determination of the existence of a material irreconcilable conflict,
a description of the facts that give rise to such conflict and the implications
of such conflict.
5.6 INFORMATION REQUESTED BY BOARD OF DIRECTORS.
LIFE COMPANY and AVIF (or its investment adviser) will at least annually
submit to the Board of Directors of AVIF such reports, materials or data as the
Board of Directors may reasonably request so that the Board of Directors may
fully carry out the obligations imposed upon it by the provisions hereof or any
exemptive order granted by the SEC to permit Mixed and Shared Funding, and said
reports, materials and data will be submitted at any reasonable time deemed
appropriate by the Board of Directors. All reports received by the Board of
Directors of potential or existing conflicts, and all Board of Directors actions
with regard to determining the existence of a conflict, notifying Participating
Insurance Companies and Participating Plans of a conflict, and determining
whether any proposed action adequately remedies a conflict, will be properly
recorded in the minutes of the Board of Directors or other appropriate records,
and such minutes or other records will be made available to the SEC upon
request.
5.7 COMPLIANCE WITH SEC RULES.
If, at any time during which AVIF is serving as an investment medium for
variable life insurance Policies, 1940 Act Rules 6e-3(T) or, if applicable, 6e-2
are amended or Rule 6e-3 is adopted to provide exemptive relief with respect to
Mixed and Shared Funding, AVIF agrees that it will comply with the terms and
conditions thereof and that the terms of this Section 5 shall be deemed modified
if and only to the extent required in order also to comply with the terms and
conditions of such exemptive relief that is afforded by any of said rules that
are applicable.
5.8 OTHER REQUIREMENTS.
AVIF will require that each Participating Insurance Company and
Participating Plan enter into an agreement with AVIF that contains in substance
the same provisions as are set forth in Sections 4. 1 (b), 4. 1 (d), 4.3(a),
4.4(b), 4.5(a), 5, and 10 of this Agreement.
14
SECTION 6. TERMINATION
6.1 EVENTS OF TERMINATION.
Subject to Section 6.4 below, this Agreement will terminate as to a Fund:
(a) at the option of any party, with or without cause with respect to the
Fund, upon six (6) months advance written notice to the other parties, or, if
later, upon receipt of any required exemptive relief (i.e., a substitution
order) from the SEC, unless otherwise agreed to in writing by the parties; or
(b) at the option of AVIF upon institution of formal proceedings against
LIFE COMPANY or its affiliates by the NASD, the SEC, any state insurance
regulator or any other regulatory body regarding LIFE COMPANY's obligations
under this Agreement or related to the sale of the Contracts, the operation of
each Account, or the purchase of Shares, if, in each case, AVIF reasonably
determines that such proceedings, or the facts on which such proceedings would
be based, have a material likelihood of imposing material adverse consequences
on the Fund with respect to which the Agreement is to be terminated; or
(c) at the option of LIFE COMPANY upon institution of formal proceedings
against AVIF, AIM or the Fund's investment adviser by the NASD, the SEC, or any
state insurance regulator or any other regulatory body regarding AVIFs
obligations under this Agreement or related to the operation or management of
AVIF or the purchase of AVIF Shares, if, in each case, LIFE COMPANY reasonably
determines that such proceedings, or the facts on which such proceedings would
be based, have a material likelihood of imposing material adverse consequences
on LIFE C OMPANY, or the Subaccount corresponding to the Fund with respect to
which the Agreement is to be terminated; or
(d) at the option of any Party in the event that (i) the Fund's Shares
are not registered and, in all material respects, issued and sold in accordance
with any applicable federal or state law, or (ii) such law precludes the use of
such Shares as an underlying investment medium of the Policies issued or to be
issued by LIFE COMPANY; or
(e) upon termination of the corresponding Subaccount's investment in the
Fund pursuant to Section 5 hereof; or
(f) at the option of LIFE COMPANY if the Fund ceases to qualify as a RIC
under Subchapter M of the Code or under successor or similar provisions, or if
LIFE COMPANY reasonably believes that the Fund may fail to so qualify; or
(g) at the option of LIFE COMPANY if the Fund fails to comply with
Section 817(h) of the Code or with successor or similar provisions, or if LIFE
COMPANY reasonably believes that the Fund may fail to so comply; or
(h) at the option of AVIF if the Policies issued by LIFE COMPANY cease to
qualify as annuity contracts or life insurance policies under the Code (other
than by reason of the Fund's
15
noncompliance with Section 8 17(h) or Subchapter M of the Code) or if interests
in an Account under the Contracts are not registered, where such registration is
required, and, in all material respects, are not issued or sold in accordance
with any applicable federal or state law; or
(i) upon another Party's material breach of any provision of this Agreement.
6.2 NOTICE REQUIREMENT FOR TERMINATION.
No termination of this Agreement will be effective unless and until the
Party terminating this Agreement gives prior written notice to the other Party
to this Agreement of its intent to terminate, and such notice shall set forth
the basis for such termination. Furthermore:
(a) in the event that any termination is based upon the provisions of
Sections 6.1(a) or 6.1(e) hereof, such prior written notice shall be given at
least six (6) months in advance of the effective date of termination unless a
shorter time is agreed to by the Parties hereto;
(b) in the event that any termination is based upon the provisions of
Sections 6.1(b) or 6.1(c) hereof, such prior written notice shall be given at
least ninety (90) days in advance of the, effective date of termination unless a
shorter time is agreed to by the Parties hereto; and
(c) in the event that any termination is based upon the provisions of
Sections 6.1(d), 6.1(f), 6.1(g), 6.1(h) or 6.1(i) hereof, such prior written
notice shall be given as soon as possible within twenty-four (24) hours after
the terminating Party learns of the event causing termination to be required.
6.3 FUNDS TO REMAIN AVAILABLE.
Notwithstanding any termination of this Agreement, AVIF will, at the
option of LIFE COMPANY, continue to make available additional shares of the Fund
pursuant to the terms and conditions of this Agreement, for all Policies in
effect on the effective date of termination of this Agreement (hereinafter
referred to as "Existing Policies"). Specifically, without limitation, the
owners of the Existing Policies will be permitted to reallocate investments in
the Fund (as in effect on such date), redeem investments in the Fund and/or
invest in the Fund upon the making of additional purchase payments under the
Existing Policies. The parties agree that this Section 6.3 will not apply to any
terminations under Section 5 and the effect of such terminations will be
governed by Section 5 of this Agreement.
6.4 SURVIVAL OF WARRANTIES AND INDEMNIFICATIONS.
All warranties and indemnifications will survive the termination of this
Agreement.
6.5 CONTINUANCE OF AGREEMENT FOR CERTAIN PURPOSES.
If any Party terminates this Agreement with respect to any Fund pursuant
to Sections 6.1(b), 6.1(c), 6.1(d), 6.1(f), 6.1(g), 6.1(h) or 6.1(i) hereof,
this Agreement shall nevertheless continue in effect as to any Shares of that
Fund that are outstanding as of the date of such termination (the
16
"Initial Termination Date"). This continuation shall extend to the earlier of
the date as of which an Account owns no Shares of the affected Fund or a date
(the "Final Termination Date") six (6) months following the Initial Termination
Date, except that LIFE COMPANY may, by written notice shorten said six (6) month
period in the case of a termination pursuant to Sections 6.1(d), 6.1(f), 6.1(g),
6.1(h) or 6.1(i).
SECTION 7. PARTIES TO COOPERATE RESPECTING TERMINATION
The Parties hereto agree to cooperate and give reasonable assistance to
one another in taking all necessary and appropriate steps for the purpose of
ensuring that an Account owns no Shares of a Fund after the Final Termination
Date with respect thereto, or, in the case of a termination pursuant to Section
6. 1 (a), the termination date specified in the notice of termination. Such
steps may include combining the affected Account with another Account,
substituting other mutual fund shares for those of the affected Fund, or
otherwise terminating participation by the Policies in such Fund.
SECTION 8. ASSIGNMENT
This Agreement may not be assigned by any Party, except with the written
consent of each other Party.
SECTION 9. NOTICES
Notices and communications required or permitted by Section 9 hereof will
be given by means mutually acceptable to the Parties concerned. Each other
notice or communication required or permitted by this Agreement will be given to
the following persons at the following addresses and facsimile numbers, or such
other persons, addresses or facsimile numbers as the Party receiving such
notices or communications may subsequently direct in writing:
AIM VARIABLE INSURANCE FUNDS, INC.
A I M DISTRIBUTORS, INC.
00 Xxxxxxxx Xxxxx, Xxxxx 000
Xxxxxxx, Xxxxx 00000
Facsimile: (000) 000-0000
Attn: Xxxxx X. Xxxxxx, Esq.
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
0000 X. Xxxxxxx Xxxxxx
Xxxx Xxxxx, XX 00000
Facsimile: (000) 000-0000
Attn: Xxxxx X. Xxxxxxxxx
Vice President
17
SECTION 10. VOTING PROCEDURES
Subject to the cost allocation procedures set forth in Section 3 hereof,
LIFE COMPANY will distribute all proxy material furnished by AVIF to
Participants to whom pass-through voting privileges are required to be extended
and will solicit voting instructions from Participants. LIFE COMPANY will vote
Shares in accordance with timely instructions received from Participants. LIFE
COMPANY will vote Shares that are (a) not attributable to Participants to whom
pass-through voting privileges are extended, or (b) attributable to
Participants, but for which no timely instructions have been received, in the
same proportion as Shares for which said instructions have been received from
Participants, so long as and to the extent that the SEC continues to interpret
the 1940 Act to require pass through voting privileges for Participants. Neither
LIFE COMPANY nor any of its affiliates will in any way recommend action in
connection with or oppose or interfere with the solicitation of proxies for the
Shares held for such Participants. Notwithstanding the foregoing, LIFE COMPANY
reserves the right to vote shares held in any Account in its own right, to the
extent permitted by law. LIFE COMPANY shall be responsible for assuring that
each of its Accounts holding Shares calculates voting privileges in a manner
consistent with that of other Participating Insurance Companies or in the manner
required by the Mixed and Shared Funding exemptive order obtained by AVIF. AVIF
will notify LIFE COMPANY of any changes of interpretations or amendments to
Mixed and Shared Funding exemptive order it has obtained. AVIF will comply with
all provisions of the 1940 Act requiring voting by shareholders, and in
particular, AVIF either will provide for annual meetings (except insofar as the
SEC may interpret Section 16 of the 1940 Act not to require such meetings) or
will comply with Section 16(c) of the 1940 Act (although AVIF is not one of the
trusts described in Section 16(c) of that Act) as well as with Sections 16(a)
and, if and when applicable, 16(b). Further, AVIF will act in accordance with
the SEC's interpretation of the requirements of Section 16(a) with respect to
periodic elections of directors and with whatever rules the SEC may promulgate
with respect thereto.
SECTION 11. FOREIGN TAX CREDITS
AVIF agrees to consult in advance with LIFE COMPANY concerning any
decision to elect or not to elect pursuant to Section 853 of the Code to pass
through the benefit of any foreign tax credits to its shareholders.
SECTION 12. INDEMNIFICATION
12.1 OF AVIF AND AIM BY LIFE COMPANY.
(a) Except to the extent provided in Sections 12.1(b) and 12.1(c), below,
LIFE COMPANY agrees to indemnify and hold harmless AVIF, AIM, their affiliates,
and each person, if any, who controls AVIF, AIM, or their affiliates within the
meaning of Section 15 of the 1933 Act and each of their respective directors and
officers, (collectively, the "Indemnified Parties" for purposes of this Section
12.1) against any and all losses, claims, damages, liabilities (including
amounts paid in settlement with the written consent of LIFE COMPANY or actions
in respect thereof (including, to the extent reasonable, legal and other
expenses), to which the Indemnified
18
Parties may become subject under any statute, regulation, at common law
or otherwise; PROVIDED, the Account owns shares of the Fund and insofar
as such losses, claims, damages, liabilities or actions:
(i) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in any Account's
1933 Act registration statement, any Account Prospectus, the
Contracts, or sales literature or advertising for the Contracts
(or any amendment or supplement to any of the foregoing), or arise
out of or are based upon 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; PROVIDED,
that this agreement to indemnify shall not apply as to any
Indemnified Party if such statement or omission or such alleged
statement or omission was made in reliance upon and in conformity
with information furnished to LIFE COMPANY by or on behalf of AVIF
for use in any Account's 1933 Act registration statement, any
Account Prospectus, the Contracts, or sales literature or
advertising or otherwise for use in connection with the sale of
Contracts or Shares (or any amendment or supplement to any of the,
foregoing); or
(ii) arise out of or as a result of any other statements or
representations (other than statements or representations
contained-in AVIF's 1933 Act registration statement, AVIF
Prospectus, sales literature or advertising of AVIF, or any
amendment or supplement to any of the foregoing, not supplied for
use therein by or on behalf of LIFE COMPANY or its affiliates and
on which such persons have reasonably relied) or the negligent,
illegal or fraudulent conduct of LIFE COMPANY or its respective
affiliates or persons under their control (including, without
limitation, their employees and "persons associated with a
member", as that term is defined in paragraph (q) of Article I of
the NASD's By-Laws), in connection with the sale or distribution
of the Contracts or Shares; or
(iii) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in AVIF's 1933 Act
registration statement, AVIF Prospectus, sales literature or
advertising of AVIF, 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 if such a statement or
omission was made in reliance upon and in conformity with
information furnished to AVIF, AIM or their affiliates by or on
behalf of LIFE COMPANY or its affiliates for use in AVIF's 1933
Act registration statement, AVIF Prospectus, sales literature or
advertising of AVIF, or any amendment or supplement to any of the
foregoing; or
(iv) arise as a result of any failure by LIFE COMPANY to perform the
obligations, provide the services and furnish the materials
required of it under
19
the terms of this Agreement, or any material breach of any
representation and/or warranty made by LIFE COMPANY in this
Agreement or arise out of or result from any other material breach
of this Agreement by LIFE COMPANY; or
(v) arise as a result of failure by the Policies issued by LIFE
COMPANY to qualify as annuity contracts or life insurance policies
under the Code, otherwise than by reason of any Fund's failure to
comply with Subchapter M or Section 817(h) of the Code.
(b) LIFE COMPANY shall not be liable under this Section 12.1 with respect
to any losses, claims, damages, liabilities or actions to which an Indemnified
Party would otherwise be subject by reason of willful misfeasance, bad faith, or
gross negligence in the performance by that Indemnified Party of its duties or
by reason of that Indemnified Party's reckless disregard of obligations or
duties (i) under this Agreement, or (ii) to AVIF or AIM.
(c) LIFE COMPANY shall not be liable under this Section 12.1 with respect
to any action against an Indemnified Party unless AVIF or AIM shall have
notified LIFE COMPANY in writing within a reasonable time after the summons or
other first legal process giving information of the nature of the action shall
have been served upon such Indemnified Party (or after such Indemnified Party
shall have received notice of such service on any designated agent), but failure
to notify LIFE COMPANY of any such action shall not relieve LIFE COMPANY from
any liability which it may have to the Indemnified Party against whom such
action is brought otherwise than on account of this Section 12. 1. Except as
otherwise provided herein, in case any such action is brought against an
Indemnified Party, LIFE COMPANY shall be entitled to participate, at its own
expense, in the defense of such action and also shall be entitled to assume the
defense thereof, with counsel approved by the Indemnified Party named in the
action, which approval shall not be unreasonably withheld. After notice from
LIFE COMPANY to such Indemnified Party of LIFE COMPANY's election to assume the
defense thereof, the Indemnified Party will cooperate fully with LIFE COMPANY
and shall bear the fees and expenses of any additional counsel retained by it,
and LIFE COMPANY will not be liable to such Indemnified Party under this
Agreement for any legal or other expenses subsequently incurred by such
Indemnified Party independently in connection with the defense thereof, other
than reasonable costs of investigation.
12.2 OF LIFE COMPANY BY AVIF AND AIM.
(a) Except to the extent provided in Sections 12.2(c), 12.2(d) and
12.2(e), below, AVIF and AIM agree to indemnify and hold harmless LIFE COMPANY,
its affiliates, and each person, if any, who controls LIFE COMPANY or its
affiliates within the meaning of Section 15 of the 1933 Act and each of their
respective directors and officers, (collectively, the "Indemnified Parties" for
purposes of this Section 12.2) against any and all losses, claims, damages,
liabilities (including amounts paid in settlement with the written consent of
AVIF and/or AIM) or actions in respect thereof (including, to the extent
reasonable, legal and other expenses), to which the Indemnified Parties may
become subject under any statute, regulation, at common law, or otherwise;
PROVIDED, the Account owns shares of the Fund and insofar as such losses,
claims, damages, liabilities or actions:
20
(i) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in AVIF's 1933 Act
registration statement, AVIF Prospectus or sales literature or
advertising of AVIF (or any amendment or supplement to any of the
foregoing), or arise out of or are based upon 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; PROVIDED, that this agreement to indemnify shall not
apply as to any Indemnified Party if such statement or omission or
such alleged statement or omission was made in reliance upon and
in conformity with information furnished to AVIF or its affiliates
by or on behalf of LIFE COMPANY or its affiliates for use in
AVIF's 1933 Act registration statement, AVIF Prospectus, or in
sales literature or advertising or otherwise for use in connection
with the sale of Contracts or Shares (or any amendment or
supplement to any of the foregoing); or
(ii) arise out of or as a result of any other statements or
representations (other than statements or representations
contained in any Account's 1933 Act registration statement, any
Account Prospectus, sales literature or advertising for the
Contracts, or any amendment or supplement to any of the foregoing,
not supplied for use therein by or on behalf of AVIF, AIM or their
affiliates and on which such persons have reasonably relied) or
the negligent, illegal or fraudulent conduct of AVIF, AIM or their
affiliates or persons under its control (including, without
limitation, their employees and "persons associated with a member"
as that term is defined in Section (q) of Article I of the NASD
By-Laws), in connection with the sale or distribution of AVIF
Shares; or
(iii) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in any Account's
1933 Act registration statement, any Account Prospectus, sales
literature or advertising covering the Contracts, 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, if such statement or omission was made in reliance
upon and in conformity with information furnished to LIFE COMPANY
or its affiliates by or on behalf of AVIF or AIM for use in any
Account's 1933 Act registration statement, any Account Prospectus,
sales literature or advertising covering the Contracts, or any
amendment or supplement to any of the foregoing; or
(iv) arise as a result of any failure by AVIF to perform the
obligations, provide the services and furnish the materials
required of it under the terms of this Agreement, or any material
breach of any representation and/or warranty made by AVIF in this
Agreement or arise out of or result from any other material breach
of this Agreement by AVIF.
21
(b) Except to the extent provided in Sections 12.2(c), 12.2(d) and
12.2(e) hereof, AVIF and AIM agree to indemnify and hold harmless the
Indemnified Parties from and against any and all losses, claims, damages,
liabilities (including amounts paid in settlement thereof with, the written
consent of AVIF and/or AIM) or actions in respect thereof (including, to the
extent reasonable, legal and other expenses) to which the Indemnified Parties
may become subject directly or indirectly under any statute, at common law or
otherwise, insofar as such losses, claims, damages, liabilities or actions
directly or indirectly result from or arise out of the failure of any Fund to
operate as a regulated investment company in compliance with (i) Subchapter M of
the Code and regulations thereunder, or (ii) Section 817(h) of the Code and
regulations thereunder, including, without limitation, any income taxes and
related penalties, rescission charges, liability under state law to Participants
asserting liability against LIFE COMPANY pursuant to the Contracts, the costs of
any ruling and closing agreement or other settlement with the IRS, and the cost
of any substitution by LIFE COMPANY of Shares of another investment company or
portfolio for those of any adversely affected Fund as a funding medium for each
Account that LIFE COMPANY reasonably deems necessary or appropriate as a result
of the noncompliance.
(c) Neither AVIF nor AIM shall be liable under this Section 12.2 with
respect to any losses, claims, damages, liabilities or actions to which an
Indemnified Party would otherwise be subject by reason of willful misfeasance,
bad faith, or gross negligence in the performance by that Indemnified Party of
its duties or by reason of such Indemnified Party's reckless disregard of its
obligations and duties (i) under this Agreement, or (ii) to LIFE COMPANY, each
Account or Participants.
(d) Neither AVIF nor AIM shall be liable under this Section 12.2 with
respect to any action against an Indemnified Party unless the Indemnified Party
shall have notified AVIF and/or AIM in w riting within a reasonable time after
the summons or other first legal process giving information of the nature of the
action shall have been served upon such Indemnified Party (or after such
Indemnified Party shall have received notice of such service on any designated
agent), but failure to notify AVIF or AIM of any such action shall not relieve
AVIF or AIM from any liability which it may have to the Indemnified Party
against whom such action is brought otherwise than on account of this Section
12.2. Except as otherwise provided herein, in case any such action is brought
against an Indemnified Party, AVIF and/or AIM will be entitled to participate,
at its own expense, in the defense of such action and also shall be entitled to
assume the defense thereof (which shall include, without limitation, the conduct
of any ruling request and closing agreement or other settlement proceeding with
the IRS), with counsel approved by the Indemnified Party named in the action,
which approval shall not be unreasonably withheld. After notice from AVIF and/or
AIM to such Indemnified Party of AVIF's or AIM's election to assume the defense
thereof, the Indemnified Party will cooperate fully with AVIF and AIM shall bear
the fees and expenses of any additional counsel retained by it, and AVIF and AIM
will not be liable to such Indemnified Party under this Agreement for any legal
or other expenses subsequently incurred by such Indemnified Party independently
in connection with the defense thereof, other than reasonable costs of
investigation.
(e) In no event shall AVIF or AIM be liable under the indemnification
provisions contained in this Agreement to any individual or entity, including,
without limitation, LIFE COMPANY or any other Participating Insurance Company or
any Participant, with respect to any losses, claims, damages, liabilities or
expenses that arise out of or result from (i) a breach of any
22
representation, warranty, and/or covenant made by LIFE COMPANY hereunder or by
any Participating Insurance Company under an agreement containing substantially
similar representations, warranties and covenants; (ii) the failure by LIFE
COMPANY or any Participating Insurance Company to maintain its segregated asset
account (which invests in any Fund) as a legally and validly established
segregated asset account under applicable state law and as a duly registered
unit investment trust under the provisions of the 1940 Act (unless exempt
therefrom); or (iii) the failure by LIFE COMPANY or any Participating Insurance
Company to maintain its variable annuity contracts or life insurance policies
(with respect to which any Fund serves as an underlying funding vehicle) as
annuity contracts or life insurance policies under applicable provisions of the
Code.
12.3 EFFECT OF NOTICE.
Any notice given by the indemnifying Party to an Indemnified Party
referred to in Sections 12. 1 (c) or 12.2(d) above of participation in or
control of any action by the indemnifying Party will in no event be deemed to be
an admission by the indemnifying Party of liability, culpability or
responsibility, and the indemnifying Party will remain free to contest liability
with respect to the claim among the Parties or otherwise.
12.4 SUCCESSORS.
A successor by law of any Party shall be entitled to the benefits of the
indemnification contained in this Section 12.
SECTION 13. APPLICABLE LAW
This Agreement will be construed and the provisions hereof interpreted
under and in accordance with
Maryland law, without regard for that state's
principles of conflict of laws.
SECTION 14. EXECUTION IN COUNTERPARTS
This Agreement may be executed simultaneously in two or more
counterparts, each of which taken together will constitute one and the same
instrument.
SECTION 15. SEVERABILITY
If any provision of this Agreement is held or made invalid by a court
decision, statute, rule or otherwise, the remainder of this Agreement will not
be affected thereby.
23
SECTION 16. RIGHTS CUMULATIVE
The rights, remedies and obligations contained in this Agreement are
cumulative and are in addition to any and all rights, remedies and obligations,
at law or in equity, that the Parties are entitled to under federal and state
laws.
SECTION 17. HEADINGS
The Table of Contents and headings used in this Agreement are for
purposes of reference only and shall not limit or define the meaning of the
provisions of this Agreement.
SECTION 18. CONFIDENTIALITY
AVIF acknowledges that the identities of the customers of LIFE COMPANY or
any of its affiliates (collectively, the "LIFE COMPANY Protected Parties" for
purposes of this Section 18), information maintained regarding those customers,
and all computer programs and procedures or other information developed by the
LIFE COMPANY Protected Parties or any of their employees or agents in connection
with XXX COMPANY's performance of its duties under this Agreement are the
valuable property of the XXX COMPANY Protected Parties. AVIF agrees that if it
comes into possession of any list or compilation of the identities of or other
information about the LIFE COMPANY Protected Parties' customers, or any other
information or property of the LIFE COMPANY Protected Parties, other than such
information as may be independently developed or compiled by AVIF from
information supplied to it by the LIFE COMPANY Protected Parties' customers who
also maintain accounts directly with AVIF, AVIF w ill hold such information or
property in confidence and refrain from using, disclosing or distributing any of
such information or other property except: (a) with LIFE COMPANY's prior written
consent; or (b) as required by law or judicial process. LIFE COMPANY
acknowledges that the identities of the customers of AVIF or any of its
affiliates (collectively, the "AVIF Protected Parties" for purposes of this
Section 18), information maintained regarding those customers, and all computer
programs and procedures or other information developed by the AVIF Protected
Parties or any of their employees or agents in connection with AVIF's
performance of its duties under this Agreement are the valuable property of the
AVIF Protected Parties. LIFE COMPANY agrees that if it comes into possession of
any list or compilation of the identities of or other information about the AVIF
Protected Parties' customers or any other information or property of the AVIF
Protected Parties, other than such information as may be independently developed
or compiled by LIFE COMPANY from information supplied to it by the AVIF
Protected Parties' customers who also maintain accounts directly with LIFE
COMPANY, LIFE COMPANY will hold such information or property in confidence and
refrain from using, disclosing or distributing any of such information or other
property except: (a) with AVIF's prior written consent; or (b) as required by
law or judicial process. Each party acknowledges that any breach of the
agreements in this Section 18 would result in- immediate and irreparable harm to
the other parties for which there would be no adequate remedy at law and agree
that in the event of such a breach, the other parties will be entitled to
equitable relief by way of temporary and permanent injunctions, as well as such
other relief as any court of competent jurisdiction deems appropriate.
24
SECTION 19. TRADEMARKS AND FUND NAMES
(a) A I M Management Group Inc. ("AIM" or "licensor"), an affiliate of
AVIF, owns all right, title and interest in and to the name, trademark and
service xxxx "AIM" and such other trade names, trademarks and service marks as
may be set forth on Schedule B, as amended from time to time by written notice
from AIM to LIFE COMPANY (the "AIM licensed marks" or the "licensor's licensed
marks") and is authorized to use and to license other persons to use such marks.
LIFE COMPANY and its affiliates are hereby granted a non-exclusive license to
use the AIM licensed marks in connection with LIFE COMPANY's performance of the
services contemplated under this Agreement, subject to the terms and conditions
set forth in this Section 19.
(b) The grant of license to LIFE COMPANY and its affiliates ( the
"licensee") shall terminate automatically upon termination of this Agreement.
Upon automatic termination, the licensee shall cease to use the licensor's
licensed marks, except that LIFE COMPANY shall have the right to continue to
service any outstanding Contracts bearing any of the AIM licensed marks. Upon
AIM's elective termination of this license, LIFE COMPANY and its affiliates
shall immediately cease to issue any new annuity or life insurance Policies
bearing any of the AIM licensed marks and shall likewise cease any activity
which suggests that it has any right under any of the AIM licensed marks or that
it has any association with AIM, except that LIFE COMPANY shall have the right
to continue to service outstanding Contracts bearing any of the AIM licensed
marks.
(c) The licensee shall obtain the prior written approval of the licensor
for the public release by such licensee of any materials bearing the licensor's
licensed marks. The licensor's approvals shall not be unreasonably withheld.
(d) During the term of this grant of license, a licensor may request that
a licensee submit samples of any materials bearing any of the licensor's
licensed marks which were previously approved by the licensor but, due to
changed circumstances, the licensor may wish to reconsider. If, on
reconsideration, or on initial review, respectively, any such samples fail to
meet with the written approval of the licensor, then the licensee shall
immediately cease distributing such disapproved materials. The licensor's
approval shall not be unreasonably withheld, and the licensor, when requesting
reconsideration of a prior approval, shall assume the reasonable expenses of
withdrawing and replacing such disapproved materials. The licensee shall obtain
the prior written approval of the licensor for the use of any new materials
developed to replace the disapproved materials, in the manner set forth above.
(e) The licensee hereunder: (i) acknowledges and stipulates that, to the
best of the knowledge of the licensee, the licensor's licensed marks are valid
and enforceable trademarks and/or service marks and that such licensee does not
own the licensor's licensed marks and claims no rights therein other than as a
licensee under this Agreement; (ii) agrees never to contend otherwise in legal
proceedings or in other circumstances; and (iii) acknowledges and agrees that
the use of the licensor's licensed marks pursuant to this grant of license shall
inure to the benefit of the licensor.
25
SECTION 20. PARTIES TO COOPERATE
Each party to this Agreement will cooperate with each other party and all
appropriate governmental authorities (including, without limitation, the SEC,
the NASD, the IRS and state insurance regulators) and will permit each other and
such authorities reasonable access to its books and records (including copies
thereof) in connection with any investigation or inquiry relating to this
Agreement or the transactions contemplated hereby.
26
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed
in their names and on their behalf by and through their duly authorized officers
signing below.
AIM VARIABLE INSURANCE FUNDS, INC.
Attest: /s/ Xxxxx X. Xxxxxx By: /s/ Xxxxxx X. Xxxxxx
-------------------------------- --------------------------------
Xxxxx X. Xxxxxx Name: Xxxxxx X. Xxxxxx
Assistant Secretary Title: President
A I M DISTRIBUTORS, INC.
Attest: /s/ Xxxxx X. Xxxxxx By: /s/ Xxxxxxx X. Xxxx
-------------------------------- --------------------------------
Xxxxx X. Xxxxxx Name: Xxxxxxx X. Xxxx
Assistant Secretary Title: President
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY, on behalf of itself and its
separate accounts and as principal underwriter for its separate accounts
Attest: /s/ Xxxxxx Xxxxxxx By: /s/ Xxxxx X. Xxxxxxxxx
-------------------------------- --------------------------------
Name: Xxxxxx Xxxxxxx Name: Xxxxx X. Xxxxxxxxx
Title: Assistant Vice President Title: Vice President
27
SCHEDULE A
FUNDS AVAILABLE UNDER THE POLICIES
AIM VARIABLE INSURANCE FUNDS, INC.
AIM V.I. Capital Appreciation Fund
AIM V.I. Diversified Income Fund
AIM V.I. Growth Fund
AIM V.I. Value Fund
SEPARATE ACCOUNTS UTILIZING THE FUNDS
Lincoln Life Flexible Premium Variable Life Account M
Lincoln Life Flexible Premium Variable Life Account R
POLICIES FUNDED BY THE SEPARATE ACCOUNTS
The Lincoln National Life Insurance Company:
Flexible Premium Variable Life Insurance Policy
LN605LL/LN6l5LL/LN6l7LL
and state variations thereof
The Lincoln National Life Insurance Company:
Flexible Premium Variable Life Insurance Policy On the Lives of Two Insureds
LN650LL
and state variations thereof
28
SCHEDULE B
AIM VARIABLE INSURANCE FUNDS, INC.
AIM ______________________________ Fund
AIM and Design
AIM
29
SCHEDULE C
EXPENSE ALLOCATIONS
DESCRIPTION LIFE COMPANY AIM/AVIF
REGISTRATION
Prepare and file Account registration Fund registration statements
registration statements(1) statements
Payment of fees Account fees Fund fees
PROSPECTUSES
Typesetting Account Prospectuses Fund Prospectuses
Account Prospectuses, and Fund Prospectuses distributed
Printing Fund Prospectuses (but not for to existing Participants(2)
existing PARTICIPANTS)
SAIS
Typesetting Account SAIs Fund SAIs
Printing Account SAIs Fund SAIs
SUPPLEMENTS (TO
PROSPECTUSES OR SAIs
Typesetting and Printing Account Supplements, and Fund Supplements to existing
Fund Supplements (but not for ParticipantS(2)
existing Participants)
(1) Includes all filings and costs necessary to keep registrations
current and effective; including, without limitation, filing Forms N-SAR and
Rule 24F-2 Notices as required by law.
(2) With respect to any AVIF material printed in combination with any
non-AVIF materials, total costs of typesetting and printing shall be prorated as
between AIM/AVIF on the one hand and LIFE COMPANY on the other based on (a) the
ratio of the number of pages of the combined prospectus, report, or other
document, for each Fund listed on Schedule A hereto to the total number of pages
in such combined prospectus, report, or other document; and (b) the ratio of the
number of Participants who invest in all Funds of AVIF to the total number of
Participants.
30
DESCRIPTION LIFE COMPANY AIM/AVIF
FINANCIAL REPORTS
Typesetting Account Reports Fund Reports to existing
Participants(2)
Printing Account Reports, and Fund
Reports (not to existing
Participants)
MAILING AND DISTRIBUTION
To Contract owners Account and Fund
Prospectuses, SAIs,
Supplements and Reports
To Offerees Account and Fund
Prospectuses, SAIs,
Supplements and Reports
PROXIES
Typesetting, printing and Account and Fund Proxies Fund Proxies where the
mailing of proxy where the matters submitted matters submitted are
solely
solicitation materials and are solely Account-related Fund-related
voting instruction
solicitation materials and Account Proxies even where
tabulation of proxies to the matters submitted are
Participants solely Fund-related
OTHER (SALES-RELATED)
Contract owner Account-related items and\
communication Fund-related items
Distribution Policies
Administration Account (Policies)
(2) With respect to any AVIF material printed in combination with any
non-AVIF materials, total costs of typesetting and printing shall be prorated as
between AIM/AVIF on the one hand and LIFE COMPANY on the other based on (a) the
ratio of the number of pages of the combined prospectus, report, or other
document, for each Fund listed
on Schedule A hereto to the total number of pages in such combined prospectus,
report, or other document; and (b) the ratio of the number of Participants who
invest in all Funds of AVIF to the total number of Participants.
31
AMENDMENT NO. 3
PARTICIPATION AGREEMENT
The
Participation Agreement (the "Agreement"), dated June 16, 1998, by and
among AIM Variable Insurance Funds, Inc., a
Maryland corporation, A I M
Distributors, Inc., a Delaware Corporation and The Lincoln National Life
Insurance Company, an Indiana life insurance company, is hereby amended as
follows:
Schedule A of the Agreement is hereby deleted in its entirety and replaced
with the following:
SCHEDULE A
FUNDS AVAILABLE UNDER SEPARATE ACCOUNTS POLICIES/CONTRACTS FUNDED BY THE
THE POLICIES UTILIZING SOME OR SEPARATE ACCOUNTS
ALL OF THE FUNDS
AIM V.I. Capital Appreciation Fund Lincoln Life Variable Annuity - The Lincoln National Life Insurance Company:
AIM V.I. Diversified Income Fund Account N Flexible Premium Variable Annuity Contracts
AIM V.I. Growth Fund AN425LL
AIM V.I. International Equity Fund Lincoln Life Flexible Premium and state variations thereof
AIM V.I. Value Fund Variable Life Account M
- The Lincoln National Life Insurance Company:
Lincoln Life Flexible Premium Flexible Premium Variable Life Insurance
Variable Life Account R Policy LN605LULN615LULN617LULN680
and state variations thereof
- The Lincoln National Life Insurance Company:
Flexible Premium Variable Life Insurance
Policy On the Lives of Two Insureds LN650LL
and state variations thereof
IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to
Schedule A to be executed in its name and behalf of its duly authorized officer
on the date specified below. All other terms and provisions of the Agreement not
amended herein shall remain in full force and effect.
Effective Date: 10-14-99
----------
AIM VARIABLE INSURANCE FUNDS, INC.
Attest: By:
Name: Xxxxx X.Xxxxxx Name: Xxxxxx X. Xxxxxx
Title: Assistant Secretary Title: President
(SEAL)
SAAGR\PAA51AV1.doc
100699(1)hg 1 of 2
A I M DISTRIBUTORS, INC.
Attest: /s/ Xxxxx X. Xxxxxx By: /s/ Xxxxxxx X. Xxxx
--------------------- ---------------------
Name: Xxxxx X. Xxxxxx Name: Xxxxxxx X. Xxxx
Title: Assistant Secretary Title: President
(SEAL)
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Attest: /s/ Xxxxxx X. Xxxxxxx By: /s/ Xxxxx X. Xxxxxxxxx
------------------------- ------------------------
Name: Xxxxxx X. Xxxxxxx Name: Xxxxx X. Xxxxxxxxx
Title: Assistant Vice President Title: Vice President
(SEAL)
SAAGR\PAA51AV1, doc
100699(1)hg 2 of 2
AMENDMENT NO. 1
PARTICIPATION AGREEMENT
The
Participation Agreement (the "Agreement"), dated June 16,1998, by and
among AIM Variable Insurance Funds, Inc., a
Maryland corporation, A I M
Distributors, Inc., a Delaware Corporation and The Lincoln National Life
Insurance Company, an Indiana life insurance company, is hereby amended as
follows:
Schedule A of the Agreement is hereby deleted in its entirety and replaced with
the following:
SCHEDULE A
FUNDS AVAILABLE UNDER SEPARATE ACCOUNTS POLICIES/CONTRACTS FUNDED BY THE
THE POLICIES UTILIZING SOME OR SEPARATE ACCOUNTS
ALL OF THE FUNDS
AIM V.I. Capital Appreciation Fund Lincoln Life Variable Annuity The Lincoln National Life Insurance Company:
AIM V.I. Diversified Income Fund Account N Flexible Premium Variable Annuity Contracts
AIM V.I. Growth Fund AN425LL
AIM V.I. International Equity Fund Lincoln Life Flexible Premium and state variations thereof
AIM V.I. Value Fund Variable Life Account M
The Lincoln National Life Insurance Company:
Lincoln Life Flexible Premium Flexible Premium Variable Life Insurance
Variable Life Account R Policy LN605LULN615LULN617LL
and state variations thereof
The Lincoln National Life Insurance Company:
Flexible Premium Variable Life Insurance
Policy On the Lives of Two Insureds LN650LL
and state variations thereof
IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to
Schedule A to be executed in its name and behalf of its duly authorized officer
on the date specified below. All other terms and provisions of the Agreement not
amended herein shall remain in full force and effect.
Effective Date:
Attest:
Name: Xxxxx X. Xxxxxx
Title: Assistant Secretary
(SEAL)
PAA28AVI.AGR
111098 (2) rr
AIM VARIABLE INSURANCE FUNDS, INC.
'By: -
Name.- Xxxxxx X. Xxxxxx
Title: President
1 of 2
A I M DISTRIBUTORS, IN
Attest: /s/ Xxxxx X. Xxxxxx
-------------------------
Name: Xxxxx X. Xxxxxx
Title: Assistant Secretary
(SEAL)
Attest: /s/ Xxxxxx X. Xxxxxxx
-------------------------
Name: Xxxxxx X. Xxxxxxx
Title: Assistant Vice President
(SEAL)
PAA28AVI.AGR 111098 (2) xx
X.
By: /s/ Xxxxxxx X. Xxxx
-------------------------
Name: Xxxxxxx X. Xxxx
Title: President
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By: /s/ Xxxxx X. Xxxxxxxxx
-------------------------
Name: Xxxxx X. Xxxxxxxxx
Title: Vice President
2 of 2
Exhibit A
Funds Available to Name of Separate Accounts
the Separate Accounts Utilizing Some or All of the Funds Policy/Contract Name(s) Policy/Contract Numbers(s)
--------------------- ---------------------------------- ----------------------- --------------------------
No Change No Change No Change New Contract Numbers:
Under the 2nd bullet, please
add: LN 660
Under the 3rd bullet, please
add: LN 650
AMENDMENT NO. 4
PARTICIPATION AGREEMENT
The
Participation Agreement (the "Agreement"), dated June 16, 1998, by and
among AIM Variable Insurance Funds, Inc., a
Maryland corporation, A I M
Distributors, Inc., a Delaware Corporation and The Lincoln National Life
Insurance Company, an Indiana life insurance company, is hereby amended as
follows:
Schedule A of the Agreement is hereby deleted in its entirety and replaced
with the following:
SCHEDULE A
-------------------------------------- --------------------------------- ----------------------------------------------------------
FUNDS AVAILABLE UNDER SEPARATE ACCOUNTS POLICIES/CONTRACTS FUNDED BY THE
THE POLICIES UTILIZING SOME OR SEPARATE ACCOUNTS
ALL OF THE FUNDS
-------------------------------------- --------------------------------- ----------------------------------------------------------
AIM V.I. Capital Appreciation Fund Lincoln Life Variable Annuity - The Lincoln National Life Insurance Company:
AIM V.I. Diversified Income Fund Account N Flexible Premium Variable Annuity Contracts
AIM V.I. Growth Fund AN425LL
AIM V.I. International Equity Fund Lincoln Life Flexible Premium and state variations thereof
AIM V.I. Value Fund Variable Life Account M
- The Lincoln National Life Insurance Company:
Lincoln Life Flexible Premium Flexible Premium Variable Life Insurance
Variable Life Account R Policy LN605LL/LN615LL/LN617LL/LN660/
LN680 and state variations thereof
- The Lincoln National Life Insurance Company:
Flexible Premium Variable Life Insurance Policy On
the Lives of Two Insureds LN650LL/LN655 and state
variations thereof
-------------------------------------- --------------------------------- ----------------------------------------------------------
IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to
Schedule A to be executed in its name and behalf of its duly authorized officer
on the date specified below. All other terms and provisions of the Agreement not
amended herein shall remain in full force and effect.
Effective Date: May 1, 2000
-----------
AIM VARIABLE INSURANCE FUNDS, INC.
Attest: /s/ Xxxxx X. Xxxxxx By:
------------------- ----------------------
Name: Xxxxx X. Xxxxxx Name: Xxxxxx X. Xxxxxx
Title: Assistant Secretary Title: President
(SEAL)
1 of 2
A I M DISTRIBUTORS, INC.
Attest: /s/ Xxxxx X. Xxxxxx By: /s/ Xxxxxxx X. Xxxx
------------------- -------------------
Name: Xxxxx X. Xxxxxx Name: Xxxxxxx X. Xxxx
Title: Assistant Secretary Title: President
(SEAL)
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Attest: /s/ Xxxxx X. Xxxxxxxx By: /s/ Xxxxxx X. Xxxxxxx
--------------------- ---------------------
Name: Xxxxx X. Xxxxxxxx Name: Xxxxxx X. Xxxxxxx
Title: 2nd Vice President Title: Second Vice President
(SEAL)
2 of 2
AMENDMENT NO. 5
PARTICIPATION AGREEMENT
The
Participation Agreement (the "Agreement"), dated June 16, 1998, by
and among AIM Variable Insurance Funds, Inc., a
Maryland corporation, A I M
Distributors, Inc., a Delaware Corporation and The Lincoln National Life
Insurance Company, an Indiana life insurance company and Lincoln Financial
Advisors Corporation, is hereby amended as follows:
Schedule A of the Agreement is hereby deleted in its entirety and
replaced with the following:
SCHEDULE A
FUNDS AVAILABLE UNDER SEPARATE ACCOUNTS POLICIES/CONTRACTS FUNDED BY
THE POLICIES UTILIZING SOME OR THE SEPARATE ACCOUNTS
ALL OF THE FUNDS
AIM V.I. Capital Appreciation Fund Lincoln Life Variable Annuity - The Lincoln National Life Insurance Company:
AIM V.I. Diversified Income Fund Account N Flexible Premium Variable Annuity Contracts
AIM V.I. Growth Fund AN425LL, 30295, 30296 and state variations
AIM V.I. International Equity Fund thereof
AIM V.I. Value Fund
Lincoln Life Flexible Premium - The Lincoln National Life Insurance Company:
Variable Life Account M Flexible Premium Variable Life Insurance
Policy LN605LULN615LULN617LULN660/
LN680 and state variations thereof
Lincoln Life Flexible Premium - The Lincoln National Life Insurance Company:
Variable Life Account R Flexible Premium Variable Life Insurance
Policy On the Lives of Two Insureds
LN650LULN655 and state variations thereof
-------------------------------------- --------------------------------- ----------------------------------------------------------
IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment
to Schedule A to be executed in its name and behalf of its duly authorized
officer on the date specified below. All other terms and provisions of the
Agreement not amended herein shall remain in full force and effect.
Effective Date: July 15, 2000
AIM VARIABLE INSURANCE FUNDS
Attest: /s/ Xxxxxxxx Xxxxx By: /s/ Xxxxxx X. Xxxxxx
------------------ --------------------
Name: Xxxxxxxx Xxxxx Name: Xxxxxx X. Xxxxxx
Title: Assistant Secretary Title: President
(SEAL)
S:\AGR\20=PAA81 avif.doc
062300 (1) j1d
1 of 2
A I M DISTRIBUTORS, INC.
Attest: /s/ P. Xxxxxxxx Xxxxx By: /s/ Xxxxxxx X. Xxxxx
--------------------- ---------------------
Name: P. Xxxxxxxx Xxxxx Name: Xxxxxxx X. Xxxxx
Title: Assistant Secretary Title: President
(SEAL)
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Attest: /s/ Xxxxx X. Xxxxxxxx By: /s/ Xxxxxx X. Xxxxxxx
--------------------- ---------------------
Name: Xxxxx X. Xxxxxxxx Name: Xxxxxx X. Xxxxxxx
Title: 2nd Vice President Title: 2nd Vice President
(SEAL)
S:\AGR\w000\PAA8aavif.doc
02300 (1) jl
2 of 2
AMENDMENT NO. 6
PARTICIPATION AGREEMENT
The Participation Agreement (the "Agreement"), dated June 16, 1998, by and
among AIM Variable Insurance Funds, Inc., a
Maryland corporation, A I M
Distributors, Inc., a Delaware Corporation and The Lincoln National Life
Insurance Company, an Indiana life insurance company, is hereby amended as
follows:
Schedule A of the Agreement is hereby deleted in its entirety and replaced
with the following:
SCHEDULE A
SEPARATE ACCOUNTS
FUNDS AVAILABLE UNDER UTILIZING SOME OR POLICIES/CONTRACTS FUNDED BY THE
THE POLICIES ALL OF THE FUNDS SEPARATE ACCOUNTS
------------ ---------------- -----------------
(SERIES I SHARES) Lincoln Life Variable Annuity - The Lincoln National Life Insurance Company:
Account N Flexible Premium Variable Annuity Contracts
AIM V.I. Capital Appreciation Fund AN425LL, 30295, 30296 and state variations thereof
AIM V.I. Diversified Income Fund
AIM V.I. Growth Fund - The Lincoln National Life Insurance Company:
AIM V.I. International Equity Fund Lincoln Life Flexible Premium Flexible Premium Variable Life Insurance Policy
AIM V.I. Value Fund Variable Life Account M LN605LL/LN615LL/LN617LL/ LN660/LN680 and state
AIM V.I. Government Securities variations thereof
- The Lincoln National Life Insurance Company:
Flexible Premium Variable Life Insurance Policy On
Lincoln Life Flexible Premium the Lives of Two Insureds LN650LL/LN655 and state
Variable Life Account R variations thereof
- The Lincoln National Life Insurance Company:
Lincoln National Variable Annuity MultiFund Individual Variable Annuity Contract
Account C 30070-B and state variations thereof
(SERIES II SHARES) Lincoln Life Variable Annuity - The Lincoln National Life Insurance Company:
Account N ChoicePlus II Variable Annuity Contracts 30070-B
AIM V.I. Growth Fund and state variations thereof
AIM V.I. International Equity Fund
AIM V.I. Value Fund Lincoln Life Variable Annuity - The Lincoln National Life Insurance Company:
AIM V.I. Government Securities Account W Xxxxx Fargo New Directions Variable Annuity
Contracts 30070-B and state variations thereof
Lincoln National Life Insurance
Separate Account 13 - The Lincoln National Life Insurance Company
Director Product 19476 and state variations thereof
Lincoln National Life Insurance - The Lincoln National Life Insurance Company
Separate Account 15 Director Product 19476 and state variations thereof
- The Lincoln National Life Insurance Company
Lincoln National Life Insurance Director Product 19476 and state variations thereof
Separate Account 16
IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to
Schedule A to be executed in its name and behalf of its duly authorized officer
on the date specified below. All other terms and provisions of the Agreement not
amended herein shall remain in full force and effect.
Effective Date: July 15, 2001
AIM VARIABLE INSURANCE FUNDS
Attest: /s/ Xxxxx X. Xxxxxx By: /s/ Xxxxx X. Xxxxxxx
--------------------------- ----------------------------------------
Name: Name: Xxxxx X. Xxxxxxx
Title: Title: Sr. Vice President
(SEAL)
A I M DISTRIBUTORS, INC.
Attest: /s/ Xxxxx X. Xxxxxx By: /s/ Xxxxxxx Xxxx
--------------------------- ----------------------------------------
Name: Name: Xxxxxxx Xxxx
Title: Title: President
(SEAL)
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Attest: /s/ Xxxxx Xxxxxxxx By: /s/ Xxxxxx X. Xxxxxxx
--------------------------- ----------------------------------------
Name: Name: Xxxxxx X. Xxxxxxx
Title: Title: 2nd Vice President
(SEAL)
FORM OF
AMENDMENT NO. 7
PARTICIPATION AGREEMENT
The Participation Agreement (the "Agreement"), dated June 16, 1998, by and
among AIM Variable Insurance Funds, Inc., a
Maryland corporation, A I M
Distributors, Inc., a Delaware Corporation and The Lincoln National Life
Insurance Company, an Indiana life insurance company, is hereby amended as
follows:
Section 2.1.e is hereby added as follows:
(e) In the event of any material error in the calculation or
communication of net asset value, dividends or capital gain
information or any delay in the communication, the responsible party
or parties shall reimburse the Company for any losses or reasonable
costs incurred as a result of the error or delay, including but not
limited to, amounts needed to make contractowners whole and reasonable
administrative costs necessary to correct the error.
Section 9. Notices is hereby amended to replace The Lincoln National Life
Insurance Company information with the following:
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
0000 X. Xxxxxxx Xxxxxx
Xxxx Xxxxx, XX 00000
Facsimile: (000) 000-0000
Attn: Funds Management
Schedule A of the Agreement is hereby deleted in its entirety and replaced
with the following:
SCHEDULE A
FUNDS AVAILABLE UNDER SEPARATE ACCOUNTS POLICIES/CONTRACTS
THE POLICIES UTILIZING SOME OR FUNDED BY THE
ALL OF THE FUNDS SEPARATE ACCOUNTS
------------------------------------------ ------------------------------- -------------------------------------------------
(SERIES I SHARES)
Lincoln Life Variable The Lincoln National Life Insurance Company:
AIM V.I. Capital Appreciation Fund Annuity Account N Flexible Premium Variable Annuity Contracts
AIM V.I. Diversified Income Fund AN425LL, 30295, 30296 and state variations
AIM V.I. Growth Fund thereof
AIM V.I. International Equity Fund
AIM V.I. Premier Equity Fund Lincoln Life Flexible The Lincoln National Life Insurance Company:
AIM V.I. Government Securities Premium Variable Life Flexible Premium Variable Life Insurance Policy
Account M N605LL/LN615LL/ LN660/LN665/LN670/LN680/LN690
and state variations thereof
Lincoln Life Flexible The Lincoln National Life Insurance Company:
Premium Variable Life Flexible Premium Variable Life Insurance
Account R Policy On the Lives of Two Insureds
LN650LL/LN655/LN656 and state variations
thereof
Lincoln National Variable The Lincoln National Life Insurance Company:
Annuity Account C MultiFund Individual Variable Annuity Contract
30070-B and state variations thereof
Lincoln Life Flexible The Lincoln National Life Insurance Company:
Premium Variable Life Corporate Owned Variable Life Insurance
Account S Policy LN925/926, LN935 and state variations
thereof
Lincoln Life Flexible The Lincoln National Life Insurance Company:
Premium Variable Life Lincoln Corporate Variable Private Solutions
Account Z LN930
Lincoln National Life The Lincoln National Life Insurance Company
Insurance Separate Director Product 19476 and state variations
Account 13 thereof
Lincoln National Life The Lincoln National Life Insurance Company
Insurance Separate Director Product 19476 and state variations
Account 15 thereof
Lincoln National Life The Lincoln National Life Insurance Company
Insurance Separate Director Product 19476 and state variations
Account 16 thereof
(SERIES II SHARES) Lincoln Life Variable The Lincoln National Life Insurance Company:
Annuity Account N ChoicePlus II Variable Annuity Contracts
AIM V.I. Growth Fund 30070-B and state variations thereof
AIM V.I. International Equity Fund
AIM V.I. Premier Equity Fund The Lincoln National Life Insurance Company:
AIM V.I. Government Securities ChoicePlus Assurance Variable Annuity
Contracts 30070-B and state variations thereof
Lincoln Life Variable The Lincoln National Life Insurance Company:
Annuity Account W Xxxxx Fargo New Directions Variable Annuity
Contracts 30070-B and state variations thereof
IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to
Schedule A to be executed in its name and behalf of its duly authorized officer
on the date specified below. All other terms and provisions of the Agreement not
amended herein shall remain in full force and effect.
Effective Date: May 1, 2003
AIM VARIABLE INSURANCE FUNDS
Attest: By:
----------------------- -------------------------------------
Name: Name:
Title: Title:
A I M DISTRIBUTORS, INC.
Attest: By:
----------------------- -------------------------------------
Name: Name:
Title: Title:
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Attest: By:
----------------------- -------------------------------------
Name: Name: Rise X. X. Xxxxxx
Title: Title: Vice President
AMENDMENT NO. 7
PARTICIPATION AGREEMENT
The Participation Agreement (the "Agreement"), dated June 16, 1998, by and
among AIM Variable Insurance Funds, Inc., a Maryland corporation, A I M
Distributors, Inc., a Delaware Corporation and The Lincoln National Life
Insurance Company, an Indiana life insurance company, is hereby amended as
follows:
Section 2.1.e is hereby added as follows:
(e) In the event of any material error in the calculation or
communication of net asset value, dividends or capital gain
information or any delay in the communication, the responsible party
or parties shall reimburse the Company for any losses or reasonable
costs incurred as a result of the error or delay, including but not
limited to, amounts needed to make contractowners whole and reasonable
administrative costs necessary to correct the error.
Section 9. Notices is hereby amended to replace The Lincoln National Life
Insurance Company information with the following:
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
0000 X. Xxxxxxx Xxxxxx
Xxxx Xxxxx, XX 00000
Facsimile: (000) 000-0000
Attn: Funds Management
Schedule A of the Agreement is hereby deleted in its entirety and replaced
with the following:
SCHEDULE A
SEPARATE ACCOUNTS POLICIES/CONTRACTS
FUNDS AVAILABLE UNDER UTILIZING SOME OR FUNDED BY THE
THE POLICIES ALL OF THE FUNDS SEPARATE ACCOUNTS
--------------------------------------------------------------------------------------------------------------------------
(SERIES I SHARES)
Lincoln Life Variable The Lincoln National Life Insurance Company:
AIM V.I. Capital Appreciation Fund Annuity Account N Flexible Premium Variable Annuity Contracts
AIM V.I. Diversified Income Fund AN425LL, 30295, 30296 and state variations
AIM V.I. Growth Fund thereof
AIM V.I. International Equity Fund
AIM V.I. Premier Equity Fund
AIM V.I. Government Securities
Lincoln Life Flexible The Lincoln National Life Insurance Company:
Premium Variable Life Flexible Premium Variable Life Insurance Policy
Account M N605LL/LN615LL/LN660/LN665/LN670/LN680/LN690
and state variations thereof
Lincoln Life Flexible The Lincoln National Life Insurance Company:
Premium Variable Life Flexible Premium Variable Life Insurance
Account R Policy On the Lives of Two Insureds
LN650LL/LN655/LN656 and state variations
thereof
Lincoln National Variable The Lincoln National Life Insurance Company:
Annuity Account C MultiFund Individual Variable Annuity Contract
30070-B and state variations thereof
Lincoln Life Flexible The Lincoln National Life Insurance Company:
Premium Variable Life Corporate Owned Variable Life Insurance
Account S Policy LN925/926, LN935 and state variations
thereof
Lincoln Life Flexible The Lincoln National Life Insurance Company:
Premium Variable Life Lincoln Corporate Variable Private Solutions
Account Z LN930
Lincoln National Life The Lincoln National Life Insurance Company
Insurance Separate Director Product 19476 and state variations
Account 13 thereof
Lincoln National Life The Lincoln National Life Insurance Company
Insurance Separate Director Product 19476 and state variations
Account 15 thereof
Lincoln National Life The Lincoln National Life Insurance Company
Insurance Separate Director Product 19476 and state variations
Account 16 thereof
(SERIES II SHARES) Lincoln Life Variable The Lincoln National Life Insurance Company:
Annuity Account N ChoicePlus II Variable Annuity Contracts
AIM V.I. Growth Fund 30070-B and state variations thereof
AIM V.I. International Equity Fund
AIM V.I. Premier Equity Fund The Lincoln National Life Insurance Company:
AIM V.I. Government Securities ChoicePlus Assurance Variable Annuity
Contracts 30070-B and state variations thereof
Lincoln Life Variable The Lincoln National Life Insurance Company:
Annuity Account W Xxxxx Fargo New Directions Variable Annuity
Contracts 30070-B and state variations thereof
IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to
Schedule A to be executed in its name and behalf of its duly authorized officer
on the date specified below. All other terms and provisions of the Agreement not
amended herein shall remain in full force and effect.
Effective Date: May 1, 2003
AIM VARIABLE INSURANCE FUNDS
Attest: /s/ Xxx Xxxxxxxx By: /s/ Xxxxxx X. Xxxxxx
------------------------------- ---------------------------
Name: Xxx Xxxxxxxx Name: Xxxxxx X. Xxxxxx
Title: Assistant Secretary Title: President
A I M DISTRIBUTORS, INC.
Attest: /s/ Xxx Xxxxxxxx By: /s/ Gene Needles
-------------------------------
Name: Xxx Xxxxxxxx Name: Gene Needles
Title: Assistant Secretary Title: President
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
Attest: /s/ Xxxxx X. Xxxxxxx By: /s/ Rise X.X. Xxxxxx
Name: Xxxxx X. Xxxxxxx Name: Rise X. X. Xxxxxx
Title: Executive Administrative Assistant Title: Vice President
AMENDMENT NO. 8
PARTICIPATION AGREEMENT
-----------------------
The Participation Agreement (the "Agreement"), dated June 16, 1998, by and among
AIM Variable Insurance Funds, a Delaware trust; A I M Distributors, Inc., a
Delaware corporation, and The Lincoln National Life Insurance Company, an
Indiana life insurance company, is hereby amended as follows:
Section 2.3 of the Agreement is hereby deleted in its entirety and replaced with
the following:
2.3 APPLICABLE PRICE
(a) Share purchase payments and redemption orders that result
from purchase payments, premium payments, surrenders and other transactions
under Contracts (collectively, "Contract transactions") and that LIFE
COMPANY receives prior to the close of regular trading on the New York
Stock Exchange (or such other time set by the Board for purposes of
determining the current net asset value of a Fund in accordance with Rule
22c-1 under the 0000 Xxx) on a Business Day will be executed at the net
asset values of the appropriate Funds next computed after receipt by AVIF
or its designated agent of the orders. For purposes of this Section 2.3(a),
LIFE COMPANY shall be the designated agent of AVIF for receipt of orders
relating to Contract transactions, , in accordance with Section 22(c) and
Rule 22c-1 under the 1940 Act, on each Business Day and receipt by such
designated agent shall constitute receipt by AVIF; PROVIDED that AVIF
receives notice of such orders by 9:00 a.m. Central Time on the next
following Business Day or such later time as computed in accordance with
Section 2.1(b) hereof. In connection with this Section 2.3(a), LIFE COMPANY
represents and warrants that it will not submit any order for Shares or
engage in any practice, nor will it allow or suffer any person acting on
its behalf to submit any order for Shares or engage in any practice, that
would violate or cause a violation of applicable law or regulation
including, without limitation Section 22 of the 1940 Act and the rules
thereunder.
(b) All other Share purchases and redemptions by LIFE COMPANY
will be effected at the net asset values of the appropriate Funds next
computed after receipt by AVIF or its designated agent of the order
therefor, and such orders will be irrevocable.
(c) Without limiting the scope or effect of Section 1.1 hereof, pursuant
to which the Board may reject a Share purchase order by or on behalf of
LIFE COMPANY under the circumstances described therein, LIFE COMPANY agree
to cooperate with the Fund and AIM to prevent any person exercising, or
purporting to exercise, rights or privileges under one or more Contracts
(including, but not limited to Contract owners, annuitants, insureds or
participants, as the case may be (collectively, "Participants")) from
engaging in any trading practices in any Fund that the Board or AIM
determines, in good faith and in their sole discretion, to be detrimental
or potentially detrimental to the other shareholders of the Fund, or to be
in
1
contravention of any applicable law or regulation including, without
limitation, Section 22 of the 1940 Act and the rules thereunder. Such
cooperation may include, but shall not be limited to, identifying the
person or persons engaging in such trading practices, facilitating the
imposition of any applicable redemption fee on such person or persons,
limiting the telephonic or electronic trading privileges of such person or
persons, and taking such other remedial steps, all to the extent permitted
or required by applicable law.
Section 6.3 of the Agreement is hereby deleted in its entirety and replaced with
the following:
6.3 FUNDS TO REMAIN AVAILABLE
Notwithstanding any termination of this Agreement by LIFE COMPANY,
AVIF will, at the option of LIFE COMPANY, continue to make available
additional shares of the Fund pursuant to the terms and conditions of this
Agreement, for all Contracts in effect on the effective date of termination
of this Agreement (hereinafter referred to as "Existing Contracts"), unless
AIM or the Board determines that doing so would not serve the best
interests of the shareholders of the affected Funds or would be
inconsistent with applicable law or regulation. Specifically, without
limitation, the owners of the Existing Contracts will be permitted to
reallocate investments in the Fund (as in effect on such date), redeem
investments in the Fund and/or invest in the Fund upon the making of
additional purchase payments under the Existing Contracts. The parties
agree that this Section 6.3 will not apply to any (i) terminations under
Section 5 and the effect of such terminations will be governed by Section 5
of this Agreement or (ii) any rejected purchase and/or redemption order as
described in Section 2.3(c) hereof.
Section 22 is hereby added to the Agreement:
SECTION 22. FORCE MAJEURE
Each Party shall be excused from the performance of any of its
obligations to the other where such nonperformance is occasioned by any
event beyond its control which shall include, without limitation, any
applicable order, rule or regulation of any federal, state or local body,
agency or instrumentality with jurisdiction, work stoppage, accident,
natural disaster, war, acts of terrorism or civil disorder, provided that
the Party so excused shall use all reasonable efforts to minimize its
nonperformance and overcome, remedy, cure or remove such event as soon as
is reasonably practicable, and such performance shall be excused only for
so long as, in any given case, the force or circumstances making
performance impossible shall exist.
2
Schedule A of the Agreement is hereby deleted in its entirety and replaced with
the following:
SCHEDULE A
FUNDS AVAILABLE UNDER THE CONTRACTS
AIM V.I. Aggressive Growth Fund AIM V.I. Mid Cap Core Equity Fund
AIM V.I. Balanced Fund AIM V.I. Money Market Fund
AIM V.I. Basic Value Fund AIM V.I. Premier Equity Fund
AIM V.I. Blue Chip Fund AIM V.I. Real Estate Fund(2)
AIM V.I. Capital Appreciation Fund AIM V.I. Small Cap Equity Fund
AIM V.I. Capital Development Fund INVESCO VIF - Core Equity Fund
AIM V.I. Core Equity Fund INVESCO VIF - Dynamics Fund
AIM V.I. Dent Demographic Trends Fund INVESCO VIF - Financial Services Fund
AIM V.I. Diversified Income Fund INVESCO VIF - Health Sciences Fund
AIM V.I. Government Securities Fund INVESCO VIF - Leisure Fund
AIM V.I. Growth Fund(1) INVESCO VIF - Small Company Growth Fund
AIM V.I. High Yield Fund(1) INVESCO VIF - Technology Fund(1)
AIM V.I. International Growth Fund INVESCO VIF - Total Return Fund
AIM V.I. Large Cap Growth Fund INVESCO VIF - Utilities Fund(1)
(1) Effective April 30, 2004, AIM V.I. Growth Fund acquired the assets of
INVESCO VIF - Growth Fund; AIM V.I. High Yield Fund acquired the assets of
INVESCO VIF - High Yield Fund; INVESCO VIF - Utilities Fund acquired the
assets of AIM V.I. Global Utilities Fund; and INVESCO VIF - Technology Fund
acquired the assets of AIM V.I. New Technology Fund and INVESCO VIF -
Telecommunications Fund.
(2) Formerly, INVESCO VIF - Real Estate Opportunities Fund
SEPARATE ACCOUNTS UTILIZING THE FUNDS
- Lincoln Life Variable Annuity
Account N
-
Lincoln Life Flexible Premium
Variable Life Account M
- Lincoln Life Flexible Premium
Variable Life Account R
- Lincoln National Variable
Annuity Account C
- Lincoln Life Variable Annuity
Account W
- Lincoln National Life Insurance
Separate Account 13
- Lincoln National Life Insurance
Separate Account 15
- Lincoln National Life Insurance
Separate Account 16
3
CONTRACTS FUNDED BY THE SEPARATE ACCOUNTS
- The Lincoln National Life Insurance Company: Flexible Premium Variable
Annuity Contracts AN425LL, 30295, 30296 and state variations thereof
- The Lincoln National Life Insurance Company: Flexible Premium Variable Life
Insurance Policy LN605LL/LN615LL/LN617LL/LN660/LN680 and state variations
thereof
- The Lincoln National Life Insurance Company: Flexible Premium Variable Life
Insurance Policy On the Lives of Two Insureds LN650LL/LN655 and state
variations thereof
- The Lincoln National Life Insurance Company: MultiFund Individual Variable
Annuity Contract 30070-B and state variations thereof
- The Lincoln National Life Insurance Company: ChoicePlus II Variable Annuity
Contracts 30070-B and state variations thereof
- The Lincoln National Life Insurance Company: ChoicePlus Assurance Variable
Annuity Contracts 30070-B and state variations thereof
- The Lincoln National Life Insurance Company: Xxxxx Fargo New Directions
Variable Annuity Contracts 30070-B and state variations thereof
- The Lincoln National Life Insurance Company: Director Product 19476 and
state variations thereof
- The Lincoln National Life Insurance Company: Director Product 19476 and
state variations thereof
- The Lincoln National Life Insurance Company: Director Product 19476 and
state variations thereof
4
All other terms and provisions of the Agreement not amended herein shall remain
in full force and effect.
Effective date: April 30, 2004
AIM VARIABLE INSURANCE FUNDS
Attest: /s/ Xxx Xxxxxxxx By: /s/ Xxxxxx X. Xxxxxx
---------------------------- --------------------------------
Name: Xxx X. Xxxxxxxx Name: Xxxxxx X. Xxxxxx
Title: Assistant Secretary Title: President
A I M DISTRIBUTORS, INC.
Attest: /s/ Xxx Xxxxxxxx By: /s/ Xxxx X. Needles
---------------------------- --------------------------------
Name: Xxx X. Xxxxxxxx Name: Xxxx X. Needles
Title: Assistant Secretary Title: President
THE LINCOLN NATIONAL LIFE
INSURANCE COMPANY
Attest: /s/ Xxxxx X. Xxxxxxx By: /s/ Rise X. X. Xxxxxx
---------------------------- --------------------------------
Name: Xxxxx X. Xxxxxxx Name: Rise X. X. Xxxxxx
Title: Executive Admin Asst. Title: Vice President
AMENDMENT NO. 9
PARTICIPATION AGREEMENT
The Participation Agreement (the "Agreement"), dated June 16, 1998, by and
among AIM Variable Insurance Funds, a Delaware trust; A I M Distributors,
Inc., a Delaware corporation, and The Lincoln National Life Insurance
Company, an Indiana life insurance company, is hereby amended as follows:
Schedule A of the Agreement is hereby deleted in its entirety and replaced
with the following:
SCHEDULE A
FUNDS AVAILABLE UNDER THE CONTRACTS
SERIES I AND II SHARES
AIM V.I. Basic Balanced Fund AIM V.I. Government Securities Fund
AIM V.I. Basic Value Fund AIM V.I. High Yield Fund
AIM V.I. Blue Chip Fund(1) AIM V.I. International Core Equity Fund
AIM V.I. Capital Appreciation Fund AIM V.I. International Growth Fund
AIM V.I. Capital Development Fund AIM V.I. Large Cap Growth Fund
AIM V.I. Core Equity Fund AIM V.I. Leisure Fund
AIM V.I. Demographic Trends Fund AIM V.I. Mid Cap Core Equity Fund
AIM V.I. Diversified Dividend Fund AIM V.I. Money Market Fund
AIM V.I. Diversified Income Fund AIM V.I. Real Estate Fund(2)
AIM V.I. Dynamics Fund AIM V.I. Small Cap Equity Fund
AIM V.I. Financial Services Fund AIM V.I. Small Company Growth Fund(3)
AIM V.I. Global Equity Fund AIM V.I. Technology Fund
AIM V.I. Global Health Care Fund AIM V.I. Utilities Fund
(1) Effective June 12, 2006, AIM V.I. Blue Chip Fund will merge into AIM V.I.
Large Cap Growth Fund.
(2) Effective July 3, 2006, AIM V.I. Real Estate Fund will be renamed AIM
V.I. Global Real Estate Fund.
(3) Effective July 3, 2006, AIM V.I. Small Company Growth Fund will be
renamed AIM V.I. Small Cap Growth Fund.
SEPARATE ACCOUNTS UTILIZING THE FUNDS
- Lincoln National Variable Annuity Account C
-
Lincoln Life Flexible Premium Variable Life Account M
- Lincoln Life Flexible Premium Variable Life Account R
- Lincoln Life Variable Annuity Account N
- Lincoln Life Variable Annuity Account W
- Lincoln Life Variable Annuity Account Z
- Lincoln National Life Insurance Separate Account 13
- Lincoln National Life Insurance Separate Account 15
- Lincoln National Life Insurance Separate Account 16
CONTRACTS FUNDED BY THE SEPARATE ACCOUNTS
ChoicePlus MultiFund(R) 5
ChoicePlus Access Xxxxx Fargo New Directions Core
ChoicePlus Bonus Xxxxx Fargo New Directions Access
ChoicePlus II Xxxxx Fargo New Directions Access 4
ChoicePlus II Access Director
ChoicePlus II Bonus Lincoln VUL I
ChoicePlus II Advance Lincoln VULDB
ChoicePlus Assurance (B Share) Lincoln VULCV
ChoicePlus Assurance (C Share) Lincoln SVUL
ChoicePlus Assurance (L Share) Lincoln SVUL I
ChoicePlus Assurance (Bonus) Lincoln SVUL II
Lincoln Corporate Private Solution
All other terms and provisions of the Agreement not amended herein shall
remain in full force and effect.
Effective date: May 1, 2006
AIM VARIABLE INSURANCE FUNDS
Attest: /s/ Xxx Xxxxxxxx By: /s/ Xxxxxx X. Xxxxxx
----------------- ---------------------
Name: Xxx Xxxxxxxx Name: Xxxxxx X. Xxxxxx
Title: Assistant Secretary Title: President
A I M DISTRIBUTORS, INC.
Attest: /s/ P. Xxxxxxxx Xxxxx By: /s/ Xxxx X. Needles
---------------------- --------------------
Name: P. Xxxxxxxx Xxxxx Name: Xxxx X. Needles
Title: Assistant Secretary Title: President
THE LINCOLN NATIONAL LIFE
INSURANCE COMPANY
Attest: /s/ Xxxxx X. Xxxxxxx By: /s/ Xxxxx X. Xxxxxxxxx
--------------------- -----------------------
Name: Xxxxx X. Xxxxxxx Name: Xxxxx X. Xxxxxxxxx
Title: 2nd Vice President Title: Vice President
May 10, 2007
VIA FEDERAL EXPRESS
-------------------
AIM Variable Insurance Funds
A I M Distributors, Inc.
00 Xxxxxxxx Xxxxx, Xxxxx 000
Xxxxxxx, XX 00000
Attn: Xxxxx X. Xxxxxx, Esq.
Re: Notice of Change of Principal Underwriter
To our valued business partner:
AIM Variable Insurance Funds, A I M Distributors, Inc. and The Lincoln
National Life Insurance Company ("Lincoln") are parties to a Participation
Agreement dated June 16, 1998.
Effective May 1, 2007, Lincoln Financial Distributors, Inc., a broker-dealer
registered with the SEC under the Securities Exchange Act of 1934 and a
member in good standing of the National Association of Securities Dealers,
Inc., assumed the role of principal underwriter with respect to the Accounts
listed in Schedule A of the Agreement.
Lincoln requests that you provide acknowledgement of this letter by signing
below and returning one executed original letter to Xxxx Xx Xxxxxxxxx, 0000
X. Xxxxxxx Xxxxxx, Xxxx Xxxxx, XX 00000. Thank you for your prompt attention
to this matter. If you have any questions, please feel free to contact Xxxx
Xx Xxxxxxxxx at 000-000-0000.
Sincerely,
/s/ Xxxxx X. Xxxxxxxxx
Xxxxx X. Xxxxxxxxx
Vice President
ACKNOWLEDGED and AGREED: ACKNOWLEDGED AND AGREED:
AIM Variable Insurance Funds A I M Distributors, Inc.
By: /s/ Xxxxx X. Xxxxxxxx By: /s/ Xxxx X. Needles
----------------------------- -----------------------------
Name: Xxxxx X. Xxxxxxxx Name: Xxxx X. Needles
Title: Assistant Vice President Title: President
Date: 5/30/2007 Date: 5/22/07
AMENDMENT NO. 9
PARTICIPATION AGREEMENT
The Participation Agreement (the "Agreement"), dated June 16, 1998, by
and among AIM Variable Insurance Funds, a Delaware trust ("AVIF") A I M
Distributors, Inc., a Delaware corporation, The Lincoln National Life
Insurance Company, an Indiana life insurance company, is hereby amended as
follows:
WHEREAS, effective April 30, 2010, AIM Variable Insurance Funds was
renamed AIM Variable Insurance Funds (Invesco Variable Insurance Funds). All
references to AIM Variable Insurance Funds is hereby deleted and replaced
with AIM Variable Insurance Funds (Invesco Variable Insurance Funds);
WHEREAS, on March 31, 2008, A I M Distributors, Inc. was renamed
Invesco Aim Distributors, Inc. Effective April 30, 2010, Invesco Aim
Distributors, Inc. was renamed Invesco Distributors, Inc. All references to A
I M Distributors, Inc. and Invesco Aim Distributors, Inc. are hereby deleted
and replaced with Invesco Distributors, Inc.
Schedule A of the Agreement is hereby deleted in its entirety and replaced
with the following:
SCHEDULE A
FUNDS AVAILABLE UNDER THE CONTRACTS
ALL SERIES I SHARES AND SERIES II SHARES OF AIM VARIABLE INSURANCE
FUNDS (INVESCO VARIABLE INSURANCE FUNDS)
SEPARATE ACCOUNTS UTILIZING THE FUNDS
ALL SEPARATE ACCOUNTS UTILIZING THE FUNDS
CONTRACTS FUNDED BY THE SEPARATE ACCOUNTS
ALL CONTRACTS FUNDED BY THE SEPARATE ACCOUNTS
1
All other terms and provisions of the Agreement not amended herein shall
remain in full force and effect.
Effective date: April 30, 2010.
AIM VARIABLE INSURANCE FUNDS
(INVESCO VARIABLE INSURANCE FUNDS)
Attest: /s/ Xxxxx Xxxxxxxx By: /s/ Xxxx X. Xxxx
Name: Xxxxx Xxxxxxxx Name: Xxxx X. Xxxx
Title: Assistant Secretary Title: Senior Vice President
INVESCO DISTRIBUTORS, INC.
Attest: /s/ Xxxxx Xxxxxxxx By: /s/ Xxxx X. Xxxxxx
Name: Xxxxx Xxxxxxxx Name: Xxxx X. Xxxxxx
Title: Assistant Secretary Title: President
THE LINCOLN NATIONAL LIFE
INSURANCE COMPANY
Attest: /s/ Xxxxxxxxx Xxxxxx By: /s/ Xxxxxx X. Xxxxx
Name: Xxxxxxxxx Xxxxxx Name: Xxxxxx X. Xxxxx
Title: Securities Fund Specialist Title: Vice President
2
AMENDMENT NO. 11
PARTICIPATION AGREEMENT
The Participation Agreement (the "Agreement"), dated July 16, 1998, by
and among AIM Variable Insurance Funds (Invesco Variable Insurance Funds), a
Delaware trust ("AVIF (IVIF)"); Invesco Distributors, Inc., a Delaware
corporation, and The Lincoln National Life Insurance Company, an Indiana life
insurance company, is hereby amended as follows:
The following is added under: "SECTION 2 PROCESSING TRANSACTIONS" before
SECTION 2.1(a):
"Notwithstanding the provisions of paragraph (b) of this Section
2.1, the Parties agree to communicate, process and settle purchase and
redemption transactions for Shares (collectively, "Share transactions")
via the Fund/SERV and Networking systems of the National Securities
Clearing Corporation (hereinafter, "NSCC"). LIFE COMPANY and AVIF
(IVIF) each represents and warrants that it: (a) has entered into an
agreement with NSCC, (b) has met and will continue to meet all of the
requirements to participate in Fund/SERV and Networking, and (c) intends
to remain at all times in compliance with the then current rules and
procedures of NSCC, all to the extent necessary or appropriate to
facilitate such communications, processing, and settlement of Share
transactions. AVIF (IVIF) agrees to provide LIFE COMPANY with account
positions and activity data relating to Share transactions via
Networking. LIFE COMPANY shall place trades for the previous Business
Day with NSCC using Defined Contribution Clearance & Settlement
(hereinafter, "DCC&S") indicators, no later than 8:00 a.m. Central Time,
and LIFE COMPANY shall pay for Shares by the scheduled close of federal
funds transmissions on the same Business Day on which it places an order
to purchase Shares in accordance with this section. Payment shall be in
federal funds transmitted by wire from the designated NSCC Settling Bank
(on behalf of the LIFE COMPANY).
For purposes of this Agreement, "Fund/SERV" shall mean NSCC's
system for automated, centralized processing of mutual fund purchase and
redemption orders, settlement, and account registration; "Networking"
shall mean NSCC's (Level Three) system that allows mutual funds and
life insurance companies to exchange account level information
electronically; "DCC&S" shall refer to an NSCC program that facilitates
the automated processing and reporting of defined contribution
transactions among asset managers, plan trustees, and plan
administrators, including third-party administrators; and "Settling
Bank" shall mean the entity appointed by AVIF (IVIF) to perform such
settlement services on behalf of AVIF (IVIF), which agrees to abide by
NSCC's then current rules and procedures insofar as they relate to same
day funds settlement. In all cases, processing and settlement of Share
transactions shall be done in a manner consistent with applicable law.
In the event that any Party is prohibited from communicating,
processing or settling Share transactions via Fund/SERV or Networking,
such Party shall
1
notify the other Parties by 9:00 a.m. Central Time. After all Parties
have been notified, the provisions of paragraphs (b) and (c) of this
Section 2.1 shall apply."
All other terms and provisions of the Agreement not amended herein shall
remain in full force and effect. Unless otherwise specified, all defined
terms shall have the same meaning given to them in the Agreement.
Effective date: July 25th, 2012.
AIM VARIABLE INSURANCE FUNDS
(INVESCO VARIABLE INSURANCE FUNDS)
Attest: /s/ Xxxxxxx Xxxxxxx By: /s/ Xxxx X. Xxxx
------------------------ --------------------------
Name: Xxxxxxx Xxxxxxx Name: Xxxx X. Xxxx
Title: Assistant Secretary Title: Senior Vice President
INVESCO DISTRIBUTORS, INC.
Attest: /s/ Xxxxxxx Xxxxxxx By: /s/ Xxxxx X. Xxxxxxxxx
------------------------ --------------------------
Name: Xxxxxxx Xxxxxxx Name: Xxxxx X. Xxxxxxxxx
Title: Assistant Secretary Title: President
THE LINCOLN NATIONAL LIFE
INSURANCE COMPANY
Attest: /s/ Xxxxx X. Xxxxxx By: /s/ Xxxxxx X. Xxxxx
------------------------ --------------------------
Name: Xxxxx X. Xxxxxx Name: Xxxxxx X.Xxxxx
Title: Securities Fund Specialist Title: Vice President
2
