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EXHIBIT 1.A.8(dd)
FORM OF PARTICIPATION AGREEMENT
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AMONG
RELIASTAR LIFE INSURANCE COMPANY,
PILGRIM VARIABLE PRODUCTS TRUST,
AND
PILGRIM INVESTMENTS, INC.
THIS AGREEMENT, dated as of the ____ day of _________, 2000, by and
among Reliastar Life Insurance Company and ReliaStar Life Insurance Company of
New York (the "Companies"), life insurance companies organized under the laws of
the State of Minnesota and New York, respectively, each on its own behalf and on
behalf of each separate account of the Companies set forth on Schedule A hereto
as may be amended from time to time (such accounts hereinafter collectively
referred to as the "Accounts"), Pilgrim Variable Products Trust (the "Trust"), a
management investment company and business trust organized under the laws of
Arizona, and Pilgrim Investments, Inc.(the "Adviser" and the "Distributor"), a
corporation organized under the laws of the State of Arizona.
WHEREAS, the Trust engages in business as an open-end management
investment company and is available to act as the investment vehicle for
separate accounts established for variable life insurance and variable annuity
contracts (the "Variable Insurance Products") to be offered by insurance
companies which have entered into participation agreements with the Trust,
Adviser and Distributor ("Participating Insurance Companies");
WHEREAS, the shares of beneficial interest of the Trust are divided
into several series of shares, each designated a "Portfolio" and representing
the interest in a particular managed portfolio of securities and other assets;
WHEREAS, the Trust has obtained an order from the Securities and
Exchange Commission (the "SEC") granting Participating Insurance Companies and
variable annuity and variable life insurance separate accounts exemptions from
the provisions of sections 9(a), 13(a), 15(a), and 15(b) of the Investment
Company Act of 1940, as amended, (the "1940 Act") and Rules 6e-2(b)(15) and
6e-3(T)(b)(15) thereunder, if and to the extent necessary to permit shares of
the Trust to be sold to and held by variable annuity and variable life insurance
separate accounts of both affiliated and unaffiliated life insurance companies
(the "Mixed and Shared Funding Exemptive Order"), and the parties to this
Agreement agree to comply with the conditions or undertakings specified in the
Mixed and Shared Funding Exemptive Order to the extent applicable to each such
party;
WHEREAS, the Trust is registered as an open-end management investment
company under the 1940 Act and shares of the Portfolios are registered under the
Securities Act of 1933, as amended (the "1933 Act");
WHEREAS, the Adviser, which serves as investment adviser to the Trust,
is duly registered as an investment adviser under the federal Investment
Advisers Act of 1940, as amended;
WHEREAS, the Companies have registered or will register certain
variable life insurance contracts (the "Contracts") under the 1933 Act;
WHEREAS, the Account is a duly organized, validly existing segregated
asset account, established by Reliastar Life Insurance Company and Reliastar
Life Insurance Company of New York under the insurance laws of the States of
Minnesota and New York, respectively, to set aside and invest assets
attributable to the Contracts;
WHEREAS, the Companies have registered the Accounts as unit investment
trusts under the 1940 Act;
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WHEREAS, the Companies have issued or will issue certain variable life
insurance contracts supported wholly or partially by the Account (the
"Contracts"), and said Contracts are listed in Schedule A hereto, as it may be
amended from time to time by mutual written agreement;
WHEREAS, the Distributor, which serves as distributor to the Trust, is
registered as a broker dealer with the SEC under the Securities Exchange Act of
1934, as amended (the "1934 Act"), and is a member in good standing of the
National Association of Securities Dealers, Inc. (the "NASD"); and
WHEREAS, to the extent permitted by applicable insurance laws and
regulations, the Companies intend to purchase shares in the Portfolios listed in
Schedule B hereto, as it may be amended from time to time by mutual written
agreement (the "Designated Portfolios") on behalf of the Account to fund the
aforesaid Contracts, and the Distributor is authorized to sell such shares to
the Account at net asset value;
NOW, THEREFORE, in consideration of their mutual promises, the
Companies, the Trust, the Adviser, and the Distributor agree as follows:
ARTICLE I. Sale of Trust Shares
1.1. The Trust agrees to sell to the Companies those shares of the
Designated Portfolios that each Account or the appropriate subaccount of each
Account orders, executing such orders on a daily basis at the net asset value
next computed after receipt and acceptance by the Trust or its designee of the
order for the shares of the Trust. For purposes of this Section 1.1, the
Companies will be the designees of the Trust for receipt of such orders from
each Account or the appropriate subaccount of each Account and receipt by such
designee will constitute receipt by the Trust; provided that the Trust receives
notice of such order by 10:00 a.m. Eastern Time on the next following business
day ("T+1"). "Business Day" will mean any day on which the New York Stock
Exchange is open for trading and on which the Trust calculates its net asset
value pursuant to the rules of the SEC.
1.2. The Companies will pay for Trust shares on T+1 that an order to
purchase Trust shares is made in accordance with Section 1.1 above. Payment will
be in federal funds transmitted by wire. This wire transfer will be initiated by
12:00 p.m. Eastern Time.
1.3. The Trust agrees to make shares of the Designated Portfolios
available indefinitely for purchase at the applicable net asset value per share
by Participating Insurance Companies and their separate accounts on those days
on which the Trust calculates its Designated Portfolio net-asset value pursuant
to rules of the SEC and the Trust shall use reasonable efforts to calculate such
net asset value on each day the New York Stock Exchange is open for trading;
provided, however, that the Board of Trustees of the Trust (the "Trust Board")
may refuse to sell shares of any Portfolio to any person, or suspend or
terminate the offering of shares of any Portfolio if such action is required by
law or by regulatory authorities having jurisdiction or is, in the sole
discretion of the Trust Board, acting in good faith and in light of its
fiduciary duties under federal and any applicable state laws, necessary in the
best interests of the shareholders of such Portfolio.
1.4. On each Business Day on which the Trust calculates its net asset
value, the Companies will aggregate and calculate the net purchase or redemption
orders for each Account or the appropriate subaccount of each Account maintained
by the Trust in which contract owner assets are invested. Net orders will only
reflect orders that the Companies have received prior to the close of regular
trading on the New York Stock Exchange, Inc. (the "NYSE") (currently 4:00 p.m.,
Eastern Time) on that Business Day. Orders that the Companies have received
after the close of regular trading on the NYSE will be treated as though
received on the next Business Day. Each communication of orders by the Companies
will constitute a representation that such orders were received by each prior to
the close of regular trading on the NYSE on the Business Day on which the
purchase or redemption order is priced in accordance with Rule 22c-1 under the
1940 Act. Other procedures relating to the handling of orders will be in
accordance with the prospectus and statement of information of the relevant
Designated Portfolio or with oral or written instructions that the Distributor
or the Trust will forward to the Companies from time to time.
1.5. The Trust agrees that shares of the Trust will be sold only to
Participating Insurance Companies and their separate accounts, qualified pension
and retirement plans or such other persons as are permitted under
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applicable provisions of the Internal Revenue Code of 1986, as amended, (the
"Internal Revenue Code"), and regulations promulgated thereunder, the sale to
which will not impair the tax treatment currently afforded the Contracts. No
shares of any Portfolio will be sold to the general public except as set forth
in this Section 1.5.
1.6. The Trust agrees to redeem for cash, upon the Companies' request,
any full or fractional shares of the Trust held by the Companies, executing such
requests on a daily basis at the net asset value next computed after receipt and
acceptance by the Trust or its agent of the request for redemption. For purposes
of this Section 1.6, the Companies will be the designees of the Trust for
receipt of requests for redemption from each Account or the appropriate
subaccount of each Account and receipt by such designee will constitute receipt
by the Trust, provided the Trust receives notice of request for redemption by
10:00 a.m. Eastern Time on the next following Business Day. Payment will be in
federal funds transmitted by wire to the Companies' account as designated by the
Companies in writing from time to time, on the same Business Day the Trust
receives notice of the redemption order from the Companies. The Trust reserves
the right to delay payment of redemption proceeds, but in no event may such
payment be delayed longer than the period permitted by the 1940 Act. The Trust
will not bear any responsibility whatsoever for the proper disbursement or
crediting of redemption proceeds; the Companies alone will be responsible for
such action. If notification of redemption is received after 10:00 a.m. Eastern
Time, payment for redeemed shares will be made on the next following Business
Day.
1.7. The Companies agree to purchase and redeem the shares of the
Designated Portfolios offered by the then current prospectus of the Trust in
accordance with the provisions of such prospectus.
1.8. Issuance and transfer of the Trust's shares will be by book entry
only. Stock certificates will not be issued to the Companies or any Account.
Purchase and redemption orders for Trust shares will be recorded in an
appropriate title for each Account or the appropriate subaccount of each
Account.
1.9. The Trust will furnish same day notice (by telecopier, followed by
written confirmation) to the Companies of the declaration of any income,
dividends or capital gain distributions payable on each Designated Portfolio's
shares. The Companies hereby elect to receive all such dividends and
distributions as are payable on the Designated Portfolio shares in the form of
additional shares of that Designated Portfolio. The Trust will notify the
Companies of the number of shares so issued as payment of such dividends and
distributions. The Companies reserve the right to revoke this election upon
reasonable prior notice to the Trust and to receive all such dividends and
distributions in cash.
1.10. The Trust will make the net asset value per share for each
Designated Portfolio available to the Companies on a daily basis as soon as
reasonably practical after the net asset value per share is calculated and will
use its best efforts to make such net asset value per share available by 6:00
p.m., Eastern Time, but in no event later than 7:00 p.m., Eastern Time, each
business day.
1.11. Any error in the calculation of the net asset value, dividend and
capital gain information greater than or equal to $0.01 per share of the Trust's
shares, shall be reported immediately upon discovery to the Companies. Any error
of a lesser amount shall be corrected in the next Business Day's net asset value
per share for the Trust. Any such notice will state for each day for which an
error occurred the incorrect price, the correct price and, to the extent
communicated to the Trust's shareholders, the reason for the price change. The
Companies may send this notice or a derivation thereof (so long as such
derivation is approved in advance by the Distributor or the Adviser) to
contractowners whose accounts are affected by the price change. The parties will
negotiate in good faith to develop a reasonable method for effecting such
adjustments. The Trust shall provide the Companies, on behalf of the Account or
the appropriate subaccount of each Account, with a prompt adjustment to the
number of shares purchased or redeemed to reflect the correct share net asset
value.
1.12.
(a) The parties hereto acknowledge that the arrangement
contemplated by this Agreement is not exclusive; the Trust's shares may
be sold to other insurance companies (subject to Section 1.8 hereof)
and the cash value of the Contracts may be invested in other investment
companies, provided, however, that until this Agreement is terminated
pursuant to Article X, the Companies shall promote the Designated
Portfolios on the same basis as other funding vehicles available under
the Contracts and funding vehicles
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other than those listed on Schedule B to this Agreement may be
available for the investment of the cash value of the Contracts.
(b) The Companies shall not, without prior notice to the
Advisor and the Distributor (unless otherwise required by applicable
law), take any action to operate the Account as a management investment
company under the 1940 Act.
(c) The Companies shall not, without prior notice to the
Advisor and the Distributor (unless otherwise required by applicable
law), induce Contract owners to change or modify the Trust or change
the Trust's distributor or investment adviser.
(d) The Companies shall not, without prior notice to the
Trust, induce Contract owners to vote on any matter submitted for
consideration by the shareholders of the Trust in a manner other than
as recommended by the Board of Trustees of the Trust.
ARTICLE II. Representations and Warranties
2.1. The Companies represent and warrant that the Contracts are or will
be registered under the 1933 Act; and that the Contracts will be issued and sold
in compliance with all applicable federal and state laws, including state
insurance suitability requirements. The Companies further represent and warrant
that each is an insurance company duly organized and in good standing under
applicable law and that each has legally and validly established each Account as
a separate account under applicable state law and has registered each Account as
a unit investment trust in accordance with the provisions of the 1940 Act to
serve as a segregated investment account for the Contracts, and that each will
maintain such registration for so long as any Contracts are outstanding. The
Companies will amend the registration statement under the 1933 Act for the
Contracts and the registration statement under the 1940 Act for the Account from
time to time as required in order to effect the continuous offering of the
Contracts or as may otherwise be required by applicable law. The Companies will
register and qualify the Contracts for sale in accordance with the securities
laws of the various states only if and to the extent deemed necessary by the
Companies.
2.2. The Companies represent that the Contracts are currently and at
the time of issuance will be treated as endowment or life insurance contracts
under applicable provisions of the Internal Revenue Code, and that each will
make every effort to maintain such treatment and that each will notify the Trust
and the Adviser immediately upon having a reasonable basis for believing that
the Contracts have ceased to be so treated or that they might not be so treated
in the future.
2.3. The Companies represent and warrant that they will not purchase
shares of the Designated Portfolios with assets derived from tax-qualified
retirement plans except, indirectly, through Contracts purchased in connection
with such plans.
2.4. The Trust and the Adviser represent and warrant that Trust shares
of the Designated Portfolios sold pursuant to this Agreement will be registered
under the 1933 Act and duly authorized for issuance in accordance with
applicable law and that the Trust is and will remain registered under the 1940
Act for as long as such shares of the Designated Portfolios are outstanding. The
Trust will amend the registration statement for its shares under the 1933 Act
and the 1940 Act from time to time as required in order to effect the continuous
offering of its shares. The Trust will register and qualify the shares of the
Designated Portfolios for sale in accordance with the laws of the various states
only if and to the extent deemed advisable by the Trust.
2.5. The Trust and the Adviser represent that the Trust is currently
qualified as a Regulated Investment Company under Subchapter M of the Internal
Revenue Code, and that it will make every effort to maintain such qualification
(under Subchapter M or any successor or similar provision) and that it will
notify the Companies immediately upon having a reasonable basis for believing
that it has ceased to so qualify or that it might not so qualify in the future.
2.6. The Trust and the Adviser represent and warrant that in performing
the services described in this Agreement, the Trust will comply with all
applicable laws, rules and regulations. The Trust and the Adviser make
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no representation as to whether any aspect of the Trust's operations (including,
but not limited to, fees and expenses and investment policies, objectives and
restrictions) complies with the insurance laws and regulations of any state. The
Trust and the Distributor agree that upon request they will use their best
efforts to furnish the information required by state insurance laws so that the
Companies can obtain the authority needed to issue the Contracts in the various
states.
2.7. The Trust currently does not intend nor does the Distributor
currently intend for the Trust to make any payments to finance distribution
expenses pursuant to Rule 12b-1 under the 1940 Act, although it reserves the
right to make such payments in the future. To the extent that a decision is made
to finance distribution expenses pursuant to Rule 12b-1 the Trust and the
Distributor undertake to have the Trust Board formulate and approve any plan
under Rule 12b-1 to finance distribution expenses in accordance with the 1940
Act.
2.8. The Distributor represents and warrants that it will distribute
the Trust shares of the Designated Portfolios in accordance with all applicable
federal and state securities laws including, without limitation, the 1933 Act,
the 1934 Act and the 0000 Xxx.
2.9. The Trust and the Adviser represent that the Trust is lawfully
organized and validly existing under the laws of the Commonwealth of
Massachusetts and that it does and will comply in all material respects with
applicable provisions of the 0000 Xxx.
2.10. The Distributor represents and warrants that it is and will
remain duly registered under all applicable federal and state securities laws
and that it will perform its obligations for the Trust in accordance in all
material respects with any applicable state and federal securities laws.
2.11. The Trust and the Distributor represent and warrant that all of
their trustees, officers, employees, investment advisers, and other
individuals/entities having access to the funds and/or securities of the Trust
are and continue to be at all times covered by a blanket fidelity bond or
similar coverage for the benefit of the Trust in an amount not less than the
minimal coverage as required currently by Rule 17g-(1) 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.
ARTICLE III. Prospectuses and Proxy Statements; Voting
3.1. The Trust or the Distributor will provide the Companies, at the
Trust's or its affiliate's expense, with as many copies of the current Trust
prospectus for the Designated Portfolios as the Companies may reasonably request
for distribution, at the Companies' expense, to prospective contractowners and
applicants. The Trust or the Distributor will provide, at the Trust's or its
affiliate's expense, as many copies of said prospectus as necessary for
distribution, at the Companies' expense, to existing contractowners. The Trust
or the Distributor will provide the copies of said prospectus to the Companies
or to each Companies' mailing agent. If requested by the Companies in lieu
thereof, the Trust or the Distributor will provide such documentation, including
a computer diskette or a final copy of a current prospectus set in type at the
Trust's or its affiliate's expense, and such other assistance as is reasonably
necessary in order for the Companies at least annually (or more frequently if
the Trust prospectus is amended more frequently) to have the Trust's prospectus
and the prospectuses of other mutual funds in which assets attributable to the
Contracts may be invested printed together in one document, in which case the
Trust or its affiliate will bear its reasonable share of expenses as described
above, allocated based on the proportionate number of pages of the Trust's and
other fund's respective portions of the document.
3.2. The Trust or the Distributor will provide the Companies, at the
Trust's or its affiliate's expense, with as many copies of the statement of
additional information as the Companies may reasonably request for distribution,
at the Companies' expense, to prospective contractowners and applicants. The
Trust or the Distributor will provide, at the Trust's or its affiliate's
expense, as many copies of said statement of additional information as necessary
for distribution, at the Companies' expense, to any existing contractowner who
requests such statement or whenever state or federal law otherwise requires that
such statement be provided. The Trust or the Distributor will provide the copies
of said statement of additional information to the Companies or to each
Companies' mailing agent.
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3.3. The Trust or the Distributor, at the Trust's or its affiliate's
expense, will provide the Companies or each Companies' mailing agent with copies
of its proxy material, if any, reports to shareholders and other communications
to shareholders in such quantity as the Companies will reasonably require. The
Companies will distribute this proxy material, reports and other communications
to existing contract owners and tabulate the votes.
3.4. If and to the extent required by law the Companies will:
(a) solicit voting instructions from contractowners;
(b) vote the shares of the Designated Portfolios held in the
Account in accordance with instructions received from contractowners;
and
(c) vote shares of the Designated Portfolios held in the
Account for which no timely instructions have been received, as well as
shares it owns, in the same proportion as shares of such Designated
Portfolio for which instructions have been received from the Companies'
contractowners;
so long as and to the extent that the SEC continues to interpret the 1940 Act to
require pass-through voting privileges for variable contractowners. Except as
set forth above, the Companies reserve the right to vote Trust shares held in
any segregated asset account in each Companies' own right, to the extent
permitted by law. The Companies will be responsible for assuring that each of
their separate accounts participating in the Trust calculates voting privileges
in a manner consistent with all legal requirements, including the Mixed and
Shared Funding Exemptive Order.
3.5. The Trust will comply with all provisions of the 1940 Act
requiring voting by shareholders, and in particular, the Trust 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, as the Trust currently intends
to comply with Section 16(c) of the 1940 Act (although the Trust 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, the Trust will act in
accordance with the SEC's interpretation of the requirements of Section 16(a)
with respect to periodic elections of trustees and with whatever rules the SEC
may promulgate with respect thereto.
ARTICLE IV. Sales Material and Information
4.1. The Distributor will provide the Companies on a timely basis with
investment performance information for each Designated Portfolio in which the
Companies maintain a subaccount of the Account, including total return for the
preceding calendar month and calendar quarter, the calendar year to date, and
the prior one-year, five-year, and ten year (or life of the Trust) periods. The
Companies may, based on the SEC mandated information supplied by the
Distributor, prepare communications for contractowners ("Contractowner
Materials"). The Companies will provide copies of all Contractowner Materials
concurrently with their first use for the Distributor's internal recordkeeping
purposes. It is understood that neither the Distributor nor any Designated
Portfolio will be responsible for errors or omissions in, or the content of,
Contractowner Materials except to the extent that the error or omission resulted
from information provided by or on behalf of the Distributor or the Designated
Portfolio. Any printed information that is furnished to the Companies pursuant
to this Agreement other than each Designated Portfolio's prospectus or statement
of additional information (or information supplemental thereto), periodic
reports and proxy solicitation materials is the Distributor's sole
responsibility and not the responsibility of any Designated Portfolio or the
Trust. The Companies agree that the Portfolios, the shareholders of the
Portfolios and the officers and governing Board of the Trust will have no
liability or responsibility to the Companies in these respects.
4.2. The Companies will not give any information or make any
representations or statements on behalf of the Trust or concerning the Trust in
connection with the sale of the Contracts other than the information or
representations contained in the registration statement, prospectus or statement
of additional information for Trust shares, as such registration statement,
prospectus and statement of additional information may be amended or
supplemented from time to time, or in reports or proxy statements for the Trust,
or in published reports for the Trust which are in the public domain or approved
by the Trust or the Distributor for distribution, or in sales literature or
other material provided by the Trust, Adviser or by the Distributor, except with
permission of the Distributor. Any piece of sales literature or other
promotional material intended to be used by the Companies which require the
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permission of the Distributor prior to use will be furnished by Companies to the
Distributor, or its designee, at least ten (10) business days prior to its use.
No such material will be used if the Distributor reasonably objects to such use
within five (5) business days after receipt.
Nothing in this Section 4.2 will be construed as preventing the Companies or
each Companies' employees or agents from giving advice on investment in the
Trust.
4.3. The Trust, the Adviser or the Distributor will furnish, or will
cause to be furnished, to the Companies or each Companies' designee, each piece
of sales literature or other promotional material in which the Companies or each
Companies' Account is named, at least ten (10) business days prior to its use.
No such material will be used if the Companies reasonably object to such use
within five (5) business days after receipt of such material.
4.4. The Trust, the Adviser and the Distributor will not give any
information or make any representations or statements on behalf of the Companies
or concerning the Companies, each Account, or the Contracts other than the
information or representations contained in a registration statement, prospectus
or statement of additional information for the Contracts, as such registration
statement, prospectus and statement of additional information may be amended or
supplemented from time to time, or in published reports for each Account or the
Contracts which are in the public domain or approved by the Companies for
distribution to contractowners, or in sales literature or other material
provided by the Companies, except with permission of the Companies. The
Companies agree to respond to any request for approval on a prompt and timely
basis.
4.5. The Trust will provide to the Companies at least one complete copy
of all registration statements, prospectuses, statements of additions
information, reports, proxy statements, sales literature and other promotional
materials, applications for exemptions, requests for no-action letters, and all
amendments to any of the above, that relate to the Trust or its shares,
contemporaneously with the filing of such document with the SEC, the NASD or
other regulatory authority.
4.6. The Companies will each provide to the Trust at least one complete
copy of all registration statements, prospectuses or statements of additional
information, reports, solicitations for voting instructions, sales literature
and other promotional materials, applications for exemptions, requests for no
action letters, and all amendments to any of the above, that relate to the
Contracts or each Account, contemporaneously with the filing of such document
with the SEC, the NASD or other regulatory authority.
4.7. For purposes of this Article IV, 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 advertisements 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.
4.8. The Trust and the Distributor hereby consent to the Companies' use
of the names Pilgrim Variable Products Trust, Pilgrim Investments, Inc., the
portfolio names designated on Schedule B or other designated names as may be
used from time to time in connection with the marketing of the Contracts,
subject to the terms of Sections 4.1 and 4.2 of this Agreement. Such consent
will terminate with the termination of this Agreement.
ARTICLE V. Fees and Expenses
5.1. The Trust, the Adviser and the Distributor will pay no fee or
other compensation to the Companies under this Agreement except if the Trust or
any Designated Portfolio adopts and implements a plan pursuant to Rule 12b-1
under the 1940 Act to finance distribution expenses, then, subject to obtaining
any required exemptive orders or other regulatory approvals, the Trust may make
payments to the Companies or to the underwriter for the Contracts if and in such
amounts agreed to by the Trust in writing.
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5.2. All expenses incident to performance by the Trust of this
Agreement will be paid by the Trust to the extent permitted by law. The Trust
will bear the expenses for the cost of registration and qualification of the
Trust's shares; preparation and filing of the Trust's prospectus, statement of
additional information and registration statement, proxy materials and reports;
setting in type and printing the Trust's prospectus; setting in type and
printing proxy materials and reports by it to contractowners (including the
costs of printing a Trust prospectus that constitutes an annual report); the
preparation of all statements and notices required by any federal or state law;
all taxes on the issuance or transfer of the Trust's shares; any expenses
permitted to be paid or assumed by the Trust pursuant to a plan, if any, under
Rule 12b-1 under the 1940 Act; and all other expenses set forth in Article III
of this Agreement. All expenses incident to the distribution and tabulation of
the Trust's proxy materials will be paid by the Trust, except postage which will
be paid by the Companies.
ARTICLE VI. Diversification and Qualification
6.1. The Adviser will ensure that the Trust will at all times invest
money from the Contracts in such a manner as to ensure that the Contracts will
be treated as variable insurance contracts under the Internal Revenue Code and
the regulations issued thereunder. Without limiting the scope of the foregoing,
the Trust will comply with Section 817(h) of the Internal Revenue Code and
Treasury Regulation 1.817-5, as amended from time to time, relating to the
diversification requirements for variable insurance, endowment, or life
insurance contracts and any amendments or other modifications to such Section or
Regulation. In the event of a breach of this Article VI by the Trust, it will
take all reasonable steps: (a) to notify the Companies of such breach; and (b)
to adequately diversify the Trust so as to achieve compliance within the grace
period afforded by Treasury Regulation 1.817-5.
6.2. The Trust and the Adviser represent that the Trust is or will be
qualified as a Regulated Investment Company under Subchapter M of the Internal
Revenue Code, and that it will make every effort to maintain such qualification
(under Subchapter M or any successor or similar provisions) and that it will
notify the Companies immediately upon having a reasonable basis for believing
that it has ceased to so qualify or that it might not so qualify in the future.
6.3. The Companies represent that the Contracts are currently, and at
the time of issuance shall be, treated as life insurance contracts, under
applicable provisions of the Internal Revenue Code, and that it will make every
effort to maintain such treatment, and that it will notify the Trust and the
Distributor immediately upon having a reasonable basis for believing the
Contracts have ceased to be so treated or that they might not be so treated in
the future. The Companies agree that any prospectus offering a contract that is
a "modified endowment contract" as that term is defined in Section 7702A of the
Internal Revenue Code (or any successor or similar provision), shall identify
such contract as a modified endowment contract.
ARTICLE VII. Potential Conflicts
7.1. The Trust Board will monitor the Trust for the existence of any
material irreconcilable conflict between the interests of the Contract owners of
all separate accounts investing in the Trust. An irreconcilable material
conflict may arise for a variety of reasons, including: (a) an action by any
state insurance 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 Portfolio are being managed; (e) a difference in voting
instructions given by variable life insurance contract owners; or (f) a decision
by an insurer to disregard the voting instructions of contract owners. The Trust
Board shall promptly inform the Companies if it determines that an
irreconcilable material conflict exists and the implications thereof.
7.2. The Companies will report any potential or existing conflicts of
which it is aware to the Trust Board. The Companies will assist the Trust Board
in carrying out its responsibilities under the Mixed and Shared Funding
Exemptive Order, by providing the Trust Board with all information reasonably
necessary for the Trust Board to consider any issues raised. This includes, but
is not limited to, an obligation by the Companies to inform the Trust Board
whenever Contract owner voting instructions are disregarded.
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7.3. If it is determined by a majority of the Trust Board, or a
majority of its disinterested members, that a material irreconcilable conflict
exists, the Companies and other Participating Insurance Companies shall, at
their expense and to the extent reasonably practicable (as determined by a
majority of the disinterested Trust Board members), take whatever steps are
necessary to remedy or eliminate the irreconcilable material conflict, up to and
including: (1) withdrawing the assets allocable to some or all of the separate
accounts from the Trust or any Portfolio and reinvesting such assets in a
different investment medium, including (but not limited to) another Portfolio of
the Trust, or submitting the question whether such segregation should be
implemented to a vote of all affected contract owners and, as appropriate,
segregating the assets of any appropriate group (i.e., annuity contract owners,
life insurance contract owners, or variable contract owners of one or more
Participating Insurance Companies) that votes in favor of such segregation, or
offering to the affected contract owners the option of making such a change; and
(2) establishing a new registered management investment company or managed
separate account.
7.4. If a material irreconcilable conflict arises because of a decision
by the Companies to disregard Contract owner voting instructions and that
decision represents a minority position or would preclude a majority vote; the
Companies may be required, at the Trust's election, to withdraw the Account's
investment in the Trust and terminate this Agreement with respect to each
Account; provided, however, that such withdrawal and termination shall be
limited to the extent required by the foregoing material irreconcilable conflict
as determined by a majority of the disinterested members of the Trust Board. Any
such withdrawal and termination must take place within six (6) months after the
Trust gives written notice that this provision is being implemented, and until
the end of that six month period the Trust shall continue to accept and
implement orders by the Companies for the purchase (and redemption) of shares of
the Trust.
7.5. If a material irreconcilable conflict arises because a particular
state insurance regulator's decision applicable to the Companies conflicts with
the majority of other state regulators, then the Companies will withdraw the
affected Account's investment in the Trust and terminate this Agreement with
respect to such Account within six months after the Trust Board informs the
Companies in writing that it has determined that such decision has created an
irreconcilable material conflict; provided, however, that such withdrawal and
termination shall be limited to the extent required by the foregoing material
irreconcilable conflict as determined by a majority of the disinterested members
of the Trust Board. Until the end of the foregoing six month period, the Trust
shall continue to accept and implement orders by the Companies for the purchase
(and redemption) of shares of the Trust.
7.6. For purposes of Section 7.3 through 7.6 of this Agreement, a
majority of the disinterested members of the Trust Board shall determine whether
any proposed action adequately remedies any irreconcilable material conflict,
but in no event will the Trust be required to establish a new funding medium for
the Contracts. The Companies shall not be required by Section 7.3 to establish a
new funding medium for the Contract if an offer to do so has been declined by
vote of a majority of Contract owners materially adversely affected by the
irreconcilable material conflict. In the event that the Trust Board determines
that any proposed action does not adequately remedy any irreconcilable material
conflict, then the Companies will withdraw the Account's investment in the Trust
and terminate this Agreement within six (6) months after the Trust Board informs
the Companies in writing of the foregoing determination; provided, however, that
such withdrawal and termination shall be limited to the extent required by any
such material irreconcilable conflict as determined by a majority of the
disinterested members of the Trust Board.
7.7. If and to the extent the Mixed and Shared Funding Exemption Order
or any amendment thereto contains terms and conditions different from Sections
3.4, 3.5, 3.6, 7.1, 7.2, 7.3, 7.4, and 7.5 of this Agreement, then the Trust
and/or the Participating Insurance Companies, as appropriate, shall take such
steps as may be necessary to comply with the Mixed and Shared Funding Exemptive
Order, and Sections 3.4, 3.5, 3.6, 7.1, 7.2, 7.3, 7.4 and 7.5 of this Agreement
shall continue in effect only to the extent that terms and conditions
substantially identical to such Sections are contained in the Mixed and Shared
Funding Exemptive Order or any amendment thereto. If and to the extent that Rule
6e-2 and Rule 6e-3(T) are amended, or Rule 6e-3 is adopted, to provide exemptive
relief from any provision of the 1940 Act or the rules promulgated thereunder
with respect to mixed or shared funding (as defined in the Mixed and Shared
Funding Exemptive Order) on terms and conditions materially different from those
contained in the Mixed and Shared Funding Exemptive Order, then (a) the Trust
and/or the Participating Insurance Companies, as appropriate, shall take such
steps as may be necessary to comply with Rules 6e-2 and 6e-3(T), as amended, and
Rule 6e-3, as adopted, to the extent such rules are applicable; and (b) Sections
3.5, 3.6, 7.1., 7.2, 7.3, 7.4, and 7.5 of
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this Agreement shall continue in effect only to the extent that terms and
conditions substantially identical to such Sections are contained in such
Rule(s) as so amended or adopted.
ARTICLE VIII. Indemnification
8.1. Indemnification By The Companies
(a) The Companies agree to indemnify and hold harmless the
Trust, the Adviser, the Distributor, and each person, if any, who
controls or is associated with the Trust, the Adviser or the
Distributor within the meaning of such terms under the federal
securities laws and any director, trustee, officer, partner, employee
or agent of the foregoing (collectively, the "Indemnified Parties" for
purposes of this Section 8.1) against any and all losses, claims,
expenses, damages, liabilities (including amounts paid in settlement
with the written consent of the Companies) or litigation (including
reasonable legal and other expenses), to which the Indemnified Parties
may become subject under any statute, regulation, at common law or
otherwise, insofar as such losses, claims, damages, liabilities or
expenses (or actions in respect thereof) or settlements:
(1) arise out of or are based upon any untrue
statements or alleged untrue statements of any material fact
contained in the registration statement, prospectus or
statement of additional information for the Contracts or
contained in the Contracts or sales literature or other
promotional material 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 or necessary to
make such statements not misleading in light of the
circumstances in which they were made; provided that this
agreement to indemnify will 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
written information furnished to the Companies by the Trust,
the Adviser or the Distributor for use in the registration
statement, prospectus or statement of additional information
for the Contracts or in the Contracts or sales literature (or
any amendment or supplement) or otherwise for use in
connection with the sale of the Contracts or Trust shares; or
(2) arise out of or as a result of statements or
representations by or on behalf of the Companies or wrongful
conduct of the Companies or persons under each Companies'
control, with respect to the sale or distribution of the
Contracts or Trust shares; or
(3) arise out of any untrue statement or alleged
untrue statement of a material fact contained in the Trust
registration statement, prospectus, statement of additional
information or sales literature or other promotional material
of the Trust (or amendment or supplement) or the omission or
alleged omission to state therein a material fact required to
be stated therein or necessary to make such statements not
misleading in light of the circumstances in which they were
made, if such a statement or omission was made in reliance
upon and in conformity with information furnished to the Trust
by or on behalf of the Companies or persons under each
Companies' control; or
(4) arise as a result of any failure by the Companies
to provide the services and furnish the materials under the
terms of this Agreement; or
(5) arise out of any material breach of any
representation and/or warranty made by the Companies in this
Agreement or arise out of or result from any other material
breach by the Companies of this Agreement;
except to the extent provided in Sections 8.1(b) and 8.3 hereof. This
indemnification will be in addition to any liability that the Companies
otherwise may have.
(b) No party will be entitled to indemnification under Section
8.1(a) to the extent such loss, claim, damage, liability or litigation
is due to the willful misfeasance, bad faith, or gross negligence in
the
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performance of such party's duties under this Agreement, or by reason
of such party's reckless disregard of its obligations or duties under
this Agreement by the party seeking indemnification.
(c) The Indemnified Parties promptly will notify the Companies
of the commencement of any litigation, proceedings, complaints or
actions by regulatory authorities against them in connection with the
issuance or sale of the Trust shares or the Contracts or the operation
of the Trust.
8.2. Indemnification By the Adviser and the Distributor
(a) The Adviser and the Distributor, in each case solely to
the extent relating to such party's responsibilities hereunder, agree
to indemnify and hold harmless the Companies and each person, if any,
who controls or is associated with the Companies within the meaning of
such terms under the federal securities laws and any director, trustee,
officer, partner, employee or agent of the foregoing (collectively, the
"Indemnified Parties" for purposes of this Section 8.2) against any and
all losses, claims, expenses, damages, liabilities (including amounts
paid in settlement with the written consent of the Adviser) or
litigation (including reasonable legal and other expenses) to which the
Indemnified Parties may become subject under any statute, regulation,
at common law or otherwise, insofar as such losses, claims, damages,
liabilities or expenses (or actions in respect thereof) or settlements:
(1) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact
contained in the registration statement, prospectus or
statement of additional information for the Trust or sales
literature or other promotional material of the Trust (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 or
necessary to make such statements not misleading in light of
the circumstances in which they were made; provided that this
agreement to indemnify will 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 the Adviser, the Distributor or the
Trust by or on behalf of the Companies for use in the
registration statement, prospectus or statement of additional
information for the Trust or in sales literature of the Trust
(or any amendment or supplement thereto) or otherwise for use
in connection with the sale of the Contracts or Trust shares;
or
(2) arise out of or as a result of statements or
representations or wrongful conduct of the Adviser or the
Distributor or persons under the control of the Adviser or the
Distributor respectively, with respect to the sale of the
Trust shares; or
(3) arise out of any untrue statement or alleged
untrue statement of a material fact contained in a
registration statement, prospectus or statement of additional
information or sales literature or other promotional material
covering the Contracts (or any amendment or supplement
thereto), or the omission or alleged omission to state therein
a material fact required to be stated or necessary to make
such statement or statements not misleading in light of the
circumstances in which they were made, if such statement or
omission was made in reliance upon and in conformity with
written information furnished to the Companies by the Adviser,
the Trust or the Distributor or persons under the control of
the Adviser or the Distributor; or
(4) arise as a result of any failure by the Adviser
or the Distributor to provide the services and furnish the
materials under the terms of this Agreement (including a
failure, whether unintentional or in good faith or otherwise,
to comply with the diversification requirements and procedures
related thereto specified in Article VI of this Agreement); or
(5) arise out of or result from any material breach
of any representation and/or warranty made by the Adviser or
the Distributor in this Agreement, or arise out of or result
from any other material breach of this Agreement by the
Adviser the Trust or the Distributor;
except to the extent provided in Sections 8.2(b) and 8.4 hereof. This
indemnification will be in addition to any liability that the Adviser
or the Distributor otherwise may have.
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(b) No party will be entitled to indemnification under Section
8.2(a) to the extent such loss, claim, damage, liability or litigation
is due to the willful misfeasance, bad faith, or gross negligence in
the performance of such party's duties under this Agreement, or by
reason of such party's reckless disregard of its obligations or duties
under this Agreement by the party seeking indemnification.
(c) The Indemnified Parties will promptly notify the Adviser
and the Distributor of the commencement of any litigation, proceedings,
complaints or actions by regulatory authorities against them in
connection with the issuance or sale of the Contracts or the operation
of the account.
8.3. Indemnification By the Trust
(a) The Trust agrees to indemnify and hold harmless the
Companies and each of its directors and officers and each person, if
any, who controls the Companies within the meaning of section 15 of the
1933 Act (collectively, the "Indemnified Parties" for purposes of this
section 8.3) against any and all losses, claims, expenses, damages,
liabilities (including amounts paid in settlement with the written
consent of the Trust's Board of Trustees), or litigation (including
reasonable legal and other expenses) to which the Indemnified Parties
may become subject under any statute, regulation, at common law or
otherwise, insofar as such losses, claims, damages, liabilities or
expenses (or actions in respect thereof) or settlements:
(1) arise as a result of any failure by the Trust to
provide the services and furnish the materials required to be
provided or furnished by it under the terms of this Agreement
(including a failure to comply with the diversification and
other qualification requirements applicable to the Trust
specified in Article VI); or
(2) arise out of or result from any material breach
of any representation and/or warranty made by the Trust in
this Agreement or arise out of or result from any other
material breach of this Agreement by the Trust.
(b) No party will be entitled to indemnification under Section
8.3(a) to the extent such loss, claim, damage, liability or litigation
is due to the willful misfeasance, bad faith, or gross negligence in
the performance of such party's duties under this Agreement, or by
reason of such party's reckless disregard of its obligations or duties
under this Agreement by the party seeking indemnification.
(c) The Indemnified Parties will promptly notify the Trust of
the commencement of any litigation, proceedings, complaints or actions
by regulatory authorities against them in connection with the issuance
or sale of the Contracts or the operation of the account.
8.4. Indemnification Procedure
Any person obligated to provide indemnification under this Article VIII
("Indemnifying Party" for the purpose of this Section 8.4) will not be liable
under the indemnification provisions of this Article VIII with respect to any
claim made against a party entitled to indemnification under this Article VIII
("Indemnified Party" for the purpose of this Section 8.4) unless such
Indemnified Party will have notified the Indemnifying Party in writing within a
reasonable time after the summons or other first legal process giving
information of the nature of the claim will have been served upon such
Indemnified Party (or after such party will have received notice of such service
on any designated agent), but failure to notify the Indemnifying Party of any
such claim will not relieve the Indemnifying Party from any liability which it
may have to the Indemnified Party against whom such action is brought otherwise
than on account of the indemnification provision of this Article VIII, except to
the extent that the failure to notify results in the failure of actual notice to
the Indemnifying Party and such Indemnifying Party is damaged solely as a result
of failure to give such notice. In case any such action is brought against the
Indemnified Party, the Indemnifying Party will be entitled to participate, at
its own expense, in the defense thereof. The Indemnifying Party also will be
entitled to assume the defense thereof, with counsel satisfactory to the party
named in the action. After notice from the Indemnifying Party to the Indemnified
Party of the Indemnifying Party's election to assume the defense thereof, the
Indemnified Party will bear the fees and expenses of any additional counsel
retained by it, and the Indemnifying Party will not be liable to such party
under this Agreement for any legal
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or other expenses subsequently incurred by such party independently in
connection with the defense thereof other than reasonable costs of
investigation, unless: (a) the Indemnifying Party and the Indemnified Party will
have mutually agreed to the retention of such counsel; or (b) the named parties
to any such proceeding (including any impleaded parties) include both the
Indemnifying Party and the Indemnified Party and representation of both parties
by the same counsel would be inappropriate due to actual or potential differing
interests between them. The Indemnifying Party will not be liable for any
settlement of any proceeding effected without its written consent but if settled
with such consent or if there is a final judgment for the plaintiff, the
Indemnifying Party agrees to indemnify the Indemnified Party from and against
any loss or liability by reason of such settlement or judgment. A successor by
law of the parties to this Agreement will be entitled to the benefits of the
indemnification contained in this Article VIII. The indemnification provisions
contained in this Article VIII will survive any termination of this Agreement.
ARTICLE IX. Applicable Law
9.1 This Agreement shall be construed and the provisions hereof
interpreted under and in accordance with the laws of the State of Arizona.
9.2 This Agreement shall be subject to the provisions of the 1933, 1934
and 1940 Acts, and the rules and regulations and rulings thereunder, including
such exemptions from those statutes, rules and regulations as the SEC may grant
(including, but not limited to, any Mixed and Shared Funding Exemptive Order)
and the terms hereof shall be interpreted and construed in accordance therewith.
If, in the future, the Mixed and Shared Funding Exemptive Order should no longer
be necessary under applicable law, then Article VII shall no longer apply.
ARTICLE X. Termination
10.1. This Agreement will terminate:
(a) at the option of any party, with or without cause, with
respect to some or all of the Designated Portfolios, upon sixty (60)
days' advance written notice to the other parties or, if later, upon
receipt of any required exemptive relief or orders from the SEC, unless
otherwise agreed in a separate written agreement among the parties; or
(b) at the option of the Companies, upon receipt of the
Companies' written notice by the other parties, with respect to any
Designated Portfolio if shares of the Designated Portfolio are not
reasonably available to meet the requirements of the Contracts as
determined in good faith by the Companies; or
(c) at the option of the Companies, upon receipt of the
Companies' written notice by the other parties, with respect to any
Designated Portfolio in the event any of the Designated Portfolio's
shares are not registered, issued or sold in accordance with applicable
state and/or Federal law or such law precludes the use of such shares
as the underlying investment media of the Contracts issued or to be
issued by Companies; or
(d) at the option of the Trust, upon receipt of the Trust's
written notice by the other parties, upon institution of formal
proceedings against the Companies by the NASD, the SEC, the insurance
commission of any state or any other regulatory body regarding the
Companies' duties under this Agreement or related to the sale of the
Contracts, the administration of the Contracts, the operation of the
Account, or the purchase of the Trust shares, provided that the Trust
determines in its sole judgment, exercised in good faith, that any such
proceeding would have a material adverse effect on the Companies'
ability to perform its obligations under this Agreement; or
(e) at the option of the Companies, upon receipt of the
Companies' written notice by the other parties, upon institution of
formal proceedings against the Trust, Adviser or the Distributor by the
NASD, the SEC, or any state securities or insurance department or any
other regulatory body, provided that the Companies determine in each
Companies' sole judgment, exercised in good faith, that any such
proceeding would have a material adverse effect on the Trust's or the
Distributor's ability to perform its obligations under this Agreement;
or
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(f) at the option of the Companies, upon receipt of the
Companies' written notice by the other parties, if the Trust ceases to
qualify as a Regulated Investment Companies under Subchapter M of the
Internal Revenue Code, or under any successor or similar provision, or
if the Companies reasonably and in good faith believe that the Trust
may fail to so qualify; or
(g) at the option of the Companies, upon receipt of the
Companies' written notice by the other parties, with respect to any
Designated Portfolio if the Trust fails to meet the diversification
requirements specified in Article VI hereof or if the Companies
reasonably and in good faith believe the Trust may fail to meet such
requirements; or
(h) at the option of any party to this Agreement, upon written
notice to the other parties, upon another party's material breach of
any provision of this Agreement which material breach is not cured
within thirty (30) days of said notice; or
(i) at the option of the Companies, if the Companies determine
in each Companies' sole judgment exercised in good faith, that either
the Trust, the Adviser or the Distributor has suffered a material
adverse change in its business, operations or financial condition since
the date of this Agreement or is the subject of material adverse
publicity which is likely to have a material adverse impact upon the
business and operations of the Companies, such termination to be
effective sixty (60) days' after receipt by the other parties of
written notice of the election to terminate; or
(j) at the option of the Trust or the Distributor, if the
Trust or the Distributor respectively, determines in its sole judgment
exercised in good faith, that the Companies have suffered a material
adverse change in its business, operations or financial condition since
the date of this Agreement or are the subject of material adverse
publicity which is likely to have a material adverse impact upon the
business and operations of the Trust or the Adviser, such termination
to be effective sixty (60) days' after receipt by the other parties of
written notice of the election to terminate; or
(k) at the option of the Companies or the Trust upon receipt
of any necessary regulatory approvals and/or the vote of the
contractowners having an interest in the Account (or any subaccount) to
substitute the shares of another investment company for the
corresponding Designated Portfolio shares of the Trust in accordance
with the terms of the Contracts for which those Designated Portfolio
shares had been selected to serve as the underlying investment media.
The Companies will give sixty (60) days' prior written notice to the
Trust of the date of any proposed vote or other action taken to replace
the Trust's shares; or
(l) at the option of the Companies or the Trust upon a
determination by a majority of the Trust Board, or a majority of the
disinterested Trust Board members, that an irreconcilable material
conflict exists among the interests of: (1) all contractowners of
variable insurance products of all separate accounts; or (2) the
interests of the Participating Insurance Companies investing in the
Trust as set forth in Article VII of this Agreement; or
(m) at the option of the Trust in the event any of the
Contracts are not issued or sold in accordance with applicable federal
and/or state law. Termination will be effective immediately upon such
occurrence without notice.
10.2. Notice Requirement. No termination of this Agreement will be
effective unless and until the party terminating this Agreement gives prior
written notice to all other parties of its intent to terminate, which notice
will set forth the basis for the termination.
10.3. Effect of Termination. Notwithstanding any termination of this
Agreement, the Trust and the Distributor will, at the option of the Companies,
continue to make available additional shares of the Trust 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.") . Specifically, without limitation, the owners of the Existing
Contracts will be permitted to reallocate investments in the Portfolios (as in
effect on such date), redeem
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investments in the Portfolios and/or invest in the Portfolios upon the making of
additional purchase payments under the Existing Contracts.
10.4. Surviving Provisions. Notwithstanding any termination this
Agreement, each party's obligations under Article VIII to indemnify other
parties will survive and not be affected by any termination of this Agreement.
In addition, each party's obligations under Section 12.7 will survive and not be
affected by any termination of this Agreement. Finally, with respect to Existing
Contracts, all provisions of this Agreement also will survive and not be
affected by any termination of this Agreement.
ARTICLE XI. Notices
11.1. Any notice shall be sufficiently given when sent by registered or
certified mail to the other party at the address of such party set forth below
or at such other address as such party may from time to time specify in writing
to the other party.
If to the Trust: Pilgrim Variable Products Trust
00 Xxxxx Xxxxxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, XX 00000
Attn:
------------------------------------
If to the Companies: Reliastar Life Insurance Company
Reliastar Life Insurance Company of New York
00 Xxxxxxxxxx Xxxxxx Xxxxx
Xxxxxxxxxxx, XX 00000
ATTN: Variable Counsel
If to Adviser and Pilgrim Investments, Inc.
Distributor: 00 Xxxxx Xxxxxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, XX 00000
Attn:
------------------------------------
ARTICLE XII. Miscellaneous
12.1. All persons dealing with the Trust must look solely to the
property of the Trust for the enforcement of any claims against the Trust as
neither the directors, trustees, officers, partners, employees, agents or
shareholders assume any personal liability for obligations entered into on
behalf of the Trust. No Portfolio or series of the Trust will be liable for the
obligations or liabilities of any other Portfolio or series.
12.2. The Trust, the Adviser and the Distributor acknowledge that the
identities of the customers of the Companies or any of their affiliates
(collectively the "Company Protected Parties" for purposes of this Section
12.2), information maintained regarding those customers, and all computer
programs and procedures or other information developed or used by the Company
Protected Parties or any of their employees or agents in connection with the
Companies' performance of its duties under this Agreement are the valuable
property of the Company Protected Parties. The Trust, the Adviser and the
Distributor agree that if they come into possession of any list or compilation
of the identities of or other information about the Company Protected Parties'
customers, or any other information or property of the Company Protected
Parties, other than such information as is publicly available or as may be
independently developed or compiled by the Trust, the Adviser or the Distributor
from information supplied to them by the Company Protected Parties' customers
who also maintain accounts directly with the Trust, the Adviser or the
Distributor, the Trust, the Adviser and the Distributor 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 the
Companies' prior written consent; or (b) as required by law or judicial process.
The Companies acknowledge that the identities of the customers of the Trust, the
Adviser, the Distributor or any of their affiliates (collectively the "Adviser
Protected Parties" for purposes of this Section 12.2), information maintained
regarding those customers,
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and all computer programs and procedures or other information developed or used
by the Adviser Protected Parties or any of their employees or agents in
connection with the Trust's, the Adviser's or the Distributor's performance of
their respective duties under this Agreement are the valuable property of the
Adviser Protected Parties. The Companies agree that if either comes into
possession of any list or compilation of the identities of or other information
about the Adviser Protected Parties' customers, or any other information or
property of the Adviser Protected Parties, other than such information as is
publicly available or as may be independently developed or compiled by the
Companies from information supplied to them by the Adviser Protected Parties'
customers who also maintain accounts directly with the Companies, the Companies
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 the Trust's, the Adviser's or the Distributor'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 12.2 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.
12.3. The captions in this Agreement are included for convenience of
reference only and in no way define or delineate any of the provisions hereof or
otherwise affect their construction or effect.
12.4. This Agreement may be executed simultaneously in two or more
counterparts, each of which taken together will constitute one and the same
instrument.
12.5. If any provision of this Agreement will be held or made invalid
by a court decision, statute, rule or otherwise, the remainder of the Agreement
will not be affected thereby.
12.6. This Agreement will not be assigned by any party hereto without
the prior written consent of all the parties.
12.7. Each party to this Agreement will maintain all records required
by law, including records detailing the services it provides. Such records will
be preserved, maintained and made available to the extent required by law and in
accordance with the 1940 Act and the rules thereunder. Each party to this
Agreement will cooperate with each other party and all appropriate governmental
authorities (including without limitation the SEC, the NASD and state insurance
regulators) and will permit each other and such authorities reasonable access to
its books and records in connection with any investigation or inquiry relating
to this Agreement or the transactions contemplated hereby. Upon request by the
Trust or the Distributor, the Companies agree to promptly make copies or, if
required, originals of all records pertaining to the performance of services
under this Agreement available to the Trust or the Distributor, as the case may
be. The Trust agrees that the Companies will have the right to inspect, audit
and copy all records pertaining to the performance of services under this
Agreement pursuant to the requirements of any state insurance department. Each
party also agrees to promptly notify the other parties if it experiences any
difficulty in maintaining the records in an accurate and complete manner. This
provision will survive termination of this Agreement.
12.8. Each party represents that the execution and delivery of this
Agreement and the consummation of the transactions contemplated herein have been
duly authorized by all necessary corporate or board action, as applicable, by
such party and when so executed and delivered this Agreement will be the valid
and binding obligation of such party enforceable in accordance with its terms.
12.9. The parties to this Agreement may amend the schedules to this
Agreement from time to time to reflect changes in or relating to the Contracts,
the Accounts or the Designated Portfolios of the Trust or other applicable terms
of this Agreement.
12.10. The rights, remedies and obligations contained in this Agreement
are cumulative and are in addition to any and all rights.
12.11. If Trust is a Massachusetts Business Trust - The parties to this
Agreement acknowledge and agree that all liabilities of the Trust arising,
directly or indirectly, under this agreement, will be satisfied solely out of
the
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assets of the Trust and that no trustee, officer, agent or holder of shares of
beneficial interest of the Trust will be personally liable for any such
liabilities.
IN WITNESS WHEREOF, each of the parties hereto has caused this
Agreement to be executed in its name and on its behalf by its duly authorized
representative and its seal to be hereunder affixed hereto as of the date
specified below:
RELIASTAR LIFE INSURANCE COMPANY:
By:
--------------------------------------
Title:
-----------------------------------
Date:
------------------------------------
RELIASTAR LIFE INSURANCE COMPANY
OF NEW YORK:
By:
--------------------------------------
Title:
-----------------------------------
Date:
------------------------------------
PILGRIM VARIABLE PRODUCTS TRUST:
By:
--------------------------------------
Title:
-----------------------------------
Date:
------------------------------------
PILGRIM INVESTMENTS, INC :
By:
--------------------------------------
Title:
-----------------------------------
Date:
------------------------------------
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SCHEDULE A
CONTRACTS AND SEPARATE ACCOUNT(S)
1. RELIASTAR LIFE INSURANCE COMPANY
SEPARATE ACCOUNT(S):
Reliastar Select Variable Account
Reliastar Select* Life Variable Account
CONTRACT(S):
Select Life II Flexible Premium Variable Life Insurance Policy
Select Life III Flexible Premium Variable Life Insurance Policy
Flex Design Flexible Premium Variable Life Insurance Policy
Variable Accumulation Design Survivorship Variable Universal Life
Insurance Policy
Variable Estate Design Survivorship Variable Universal Life Insurance
Policy
Variable Estate Design Survivorship Variable Universal Life Insurance
Policy Reliastar Capital Series
2. RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
SEPARATE ACCOUNT(S):
Reliastar Life Insurance Company of New York Variable Life Separate
Account I
Reliastar Life Insurance Company of New York Variable Life Separate
Account II
CONTRACT(S):
Select Life* NY Flexible Premium Variable Life Insurance Policy
Select Life II Flexible Premium Variable Life Insurance Policy
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SCHEDULE B
PILGRIM VARIABLE PRODUCTS TRUST
DESIGNATED PORTFOLIOS
PORTFOLIOS:
VP Growth Opportunities Portfolio
VP Growth and Value Portfolio
VP High Yield Portfolio
VP Individual Value Portfolio VP Magna Cap Portfolio
VP Mid Cap Opportunities Portfolio
VP Research Enhanced Index Portfolio
VP Small Cap Opportunities Portfolio
Schedule Date: , 2001
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