FUND PARTICIPATION AGREEMENT
Item 27 Exhibit (h) i f 1.
TABLE OF CONTENTS
ARTICLE I |
Sale of Trust Shares | 4 | ||||
ARTICLE II |
Representations and Warranties | 6 | ||||
ARTICLE III |
Prospectus and Proxy Statements; Voting | 9 | ||||
ARTICLE IV |
Sales Material and Information | 10 | ||||
ARTICLE V |
Fees and Expenses | 12 | ||||
ARTICLE VI |
Diversification and Qualification | 12 | ||||
ARTICLE VII |
Potential Conflicts and Compliance with Other Mixed and Shared Funding Exemptive Order | 13 | ||||
ARTICLE VIII |
Indemnification | 15 | ||||
ARTICLE IX |
Applicable Law | 19 | ||||
ARTICLE X |
Privacy and Confidential Information | 20 | ||||
ARTICLE XI |
Anti-Money Laundering Regulations | 21 | ||||
ARTICLE XII |
Termination | 22 | ||||
ARTICLE XIII |
Notices | 24 | ||||
ARTICLE XIV |
Miscellaneous | 24 | ||||
SCHEDULE A |
Contracts | 27 | ||||
SCHEDULE B |
Designated Portfolios | 28 | ||||
SCHEDULE C |
Expenses | 29 |
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Among
MASSCHUSETTS
MUTUAL LIFE INSURANCE COMPANY
ING FUNDS
DISTRIBUTOR, LLC
and
ING VARIABLE
PRODUCTS TRUST
THIS AGREEMENT, made
and entered into as of this 26th
day of April 2006 by and among Massachusetts Mutual Life Insurance Company
(hereinafter “MMLIC”), a Massachusetts life insurance company, on its own behalf
and on behalf of its Separate Account(s) (the “Account(s)”) as set forth on
Schedule A hereto; ING Variable Products Trust, an open-end management
investment company and business trust organized under the laws of Massachusetts
(hereinafter the “Trust”); and ING Funds Distributor, LLC (hereinafter the
“Distributor”), a Delaware limited liability company.
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 policies and/or variable annuity contracts
(collectively, the “Variable Insurance Products”) to be offered by insurance
companies, including MMLIC, which have entered into participation agreements
similar to this Agreement (hereinafter “Participating Insurance Companies”); and
WHEREAS, the
beneficial interest in the Trust is divided into several series of shares, each
designated a “Portfolio” and representing the interest in a particular managed
portfolio of securities and other assets; and
WHEREAS, MMLIC has
registered certain variable annuity contracts supported wholly or partially by
the Account (the “Contracts”) under the 1933 Act, the Account is a duly
organized, validly existing segregated asset account, established by resolution
of the Board of Directors of MMLIC under the insurance laws of the State of
Massachusetts to set aside and invest assets attributable to the Contracts; and
MMLIC has registered the Account as a unit investment trust under the 1940 Act
and has registered the securities deemed to be issued by the Account under the
1933 Act; and
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WHEREAS, to the
extent permitted by applicable insurance laws and regulations, MMLIC intends to
purchase shares in the Portfolio(s) listed in Schedule B attached hereto
and incorporated herein by reference, as such Schedule may be amended from time
to time by mutual written agreement (the “Designated Portfolio(s)”), on behalf
of the Account to fund the Contracts, and the Trust is authorized to sell such
shares to unit investment trusts such as the Account at net asset value; and
NOW, THEREFORE, in
consideration of their mutual promises, MMLIC, the Trust, and the Distributor
agree as follows:
ARTICLE I
Sale of Trust Shares
Sale of Trust Shares
1.1 The Trust agrees
to sell to MMLIC those shares of the Designated Portfolio(s) which the Account
orders, executing such orders on each Business Day at the net asset value next
computed after receipt by the Trust or its designee of the order for the shares
of the Designated Portfolios. For purposes of this Section 1.1, MMLIC shall
be the designee of the Trust for receipt of such orders and receipt by such
designee shall constitute receipt by the Trust, provided that the Trust receives
notice of any such order, via facsimile, by 10:00 a.m. Eastern time on the
next following Business Day. “Business Day” shall mean any day on which the New
York Stock Exchange is open for trading and on which the Designated Portfolio
calculates its net asset value pursuant to the rules of the SEC.
1.2 The Trust agrees
to make shares of the Designated Portfolio(s) available for purchase at the
applicable net asset value per share by MMLIC and the Account on those days on
which the Trust calculates its Designated Portfolio(s)’ net asset value pursuant
to rules of the SEC, and the Trust shall calculate such net asset value on each
day which the New York Stock Exchange is open for trading. Notwithstanding the
foregoing, the Board of Trustees of the Trust (hereinafter the “Board”) may
refuse to sell shares of any Designated Portfolio to any person, or suspend or
terminate the offering of shares of any Designated Portfolio if such action is
required by law or by regulatory authorities having jurisdiction or is, in the
sole discretion of the 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 Designated Portfolio.
1.3 The Trust and
the Distributor agree that shares of the Trust will be sold only to
Participating Insurance Companies and their separate accounts and other persons
who are permissible investors consistent with the Accounts meeting the
requirement of Treasury Regulation 1.817-5.
1.4 The Trust shall
redeem its shares in accordance with the terms of its then current prospectus.
(For purposes of this Section 1.4, MMLIC shall be the designee of the
Trust for receipt of requests for redemption and receipt by such designee shall
constitute receipt
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by the Trust,
provided that the Trust receives notice of any such request for redemption by
10:00 a.m. Eastern time on the next following Business Day.)
1.5 The Parties
hereto acknowledge that the arrangement contemplated by this Agreement is not
exclusive; the Trust’s shares may be sold to other Participating Insurance
Companies (subject to Section 1.3) and the cash value of the Contracts may
be invested in other investment companies.
1.6 MMLIC shall pay
for Trust shares by 5:00 p.m. Eastern time on the next Business Day after an
order to purchase Trust shares is made in accordance with the provisions of
Section 1.1 hereof. Payment shall be in federal funds transmitted by wire
and/or by a credit for any shares redeemed the same day as the purchase.
1.7 The Trust shall
pay and transmit the proceeds of redemptions of Trust shares by 11:00 a.m.
Eastern Time on the next Business Day after a redemption order is received in
accordance with Section 1.4 hereof. Payment shall be in federal funds
transmitted by wire and/or a credit for any shares purchased the same day as the
redemption.
1.8 Issuance and
transfer of the Trust’s shares will be by book entry only. Stock certificates
will not be issued to MMLIC or the Account. Shares purchased from the Trust
will be recorded in an appropriate title for the Account or the appropriate
sub-account of the Account. The Trust will provide MMLIC with account look-up
access through DST Vision or similar electronic look-up feature to review daily
account share balances.
1.9 The Trust shall
furnish same day notice (by wire or telephone, followed by written confirmation)
to MMLIC of any income, dividends or capital gain distributions payable on the
Designated Portfolio(s)’ shares. MMLIC hereby elects to receive all such income
dividends and capital gain distributions as are payable on the Designated
Portfolio shares in additional shares of that Designated Portfolio. MMLIC
reserves the right to revoke this election and to receive all such income
dividends and capital gain distributions in cash. The Trust shall notify MMLIC
by the end of the next following Business Day of the number of shares so issued
as payment of such dividends and distributions.
1.10 The Trust shall
make the net asset value per share for each Designated Portfolio available to
MMLIC on each Business Day as soon as reasonably practical after the net asset
value per share is calculated and shall use its best efforts to make such net
asset value per share available by 8:00 p.m. Eastern time. In the event of an
error in the computation of a Designated Portfolio’s net asset value per share
(“NAV”) or any dividend or capital gain distribution (each, a “pricing error”),
the Trust shall immediately notify MMLIC as soon as possible after discovery of
the error. Such notification may be verbal, but shall be confirmed promptly in
writing in accordance with Article XI of this Agreement. A pricing error
shall be corrected as follows:
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a) | If the pricing error results in a difference between the erroneous NAV and the correct NAV of less than $0.01 per share, then no corrective action need be taken. | ||
b) | If the pricing error results in a difference between the erroneous NAV and the correct NAV equal to or greater than $0.01 per share, but less than 1/2 of 1% of the Designated Portfolio’s NAV at the time of the error, then the Trust shall reimburse the Designated Portfolio for any loss, after taking into consideration any positive effect of such error; however, no adjustments to Contractowner accounts need be made. | ||
c) | If the pricing error results in a difference between the erroneous NAV and the correct NAV equal to or greater than 1/2 of 1% of the Designated Portfolio’s NAV at the time of the error, then the Trust shall reimburse the Designated Portfolio for any loss (without taking into consideration any positive effect of such error) and shall reimburse MMLIC for the costs of adjustments made to correct Contractowner accounts. |
If an adjustment is
necessary to correct a material error which has caused Contractowners to receive
less than the amount to which they are entitled, the number of shares of the
applicable sub-account of such Contractowners will be adjusted and the amount of
any underpayments shall be credited by the Trust to MMLIC for crediting of such
amounts to the applicable Contractowners accounts. Upon notification by the
Trust of any overpayment due to a material error, MMLIC shall promptly remit to
Trust any overpayment that has not been paid to Contractowners. In no event
shall MMLIC be liable to Contractowners for any such adjustments or
underpayment amounts. A pricing error within items (b) and (c) above
shall be deemed to be “materially incorrect” or constitute a “material error”
for purposes of this Agreement.
The
standards set forth in this Section 1.10 are based on the Parties’
understanding of the views expressed by the staff of the SEC as of the date of
this Agreement. In the event the views of the SEC staff are later modified or
superseded by SEC or judicial interpretation, the parties shall amend the
foregoing provisions of this Agreement to comport with the appropriate
applicable standards, on terms mutually satisfactory to all Parties.
ARTICLE II
Representations and Warranties
Representations and Warranties
2.1 MMLIC represents
and warrants that:
a) | The Contracts and the securities deemed to be issued by the Account under the Contracts are or will be registered under the 1933 Act. | ||
b) | The Contracts will be issued and sold in compliance in all material respects with all applicable federal and state laws and that the sale of the Contracts shall comply in all material respects with state insurance requirements. | ||
c) | It is an insurance company duly organized and in good standing under applicable law and that it has legally and validly established the Account prior to any |
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issuance or sale of units thereof as a segregated asset account under Massachusetts law. | |||
d) | It has registered the 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 it will maintain such registration for so long as any Contracts are outstanding as required by applicable law. |
2.2 The Trust
represents and warrants that:
a) | It has obtained an order from the Securities and Exchange Commission (hereinafter the “SEC”), dated October 12, 2005 (File No. 812-13116), granting Participating Insurance Companies and variable annuity 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, (hereinafter the “1940 Act”) and Rules 6e-2(b)(15) and 6e-3(T)(b)(15) thereunder, to the extent necessary to permit shares of the Trust to be sold to and held by variable annuity separate accounts of life insurance companies that may or may not be affiliated with one another and qualified pension and retirement plans (“Qualified Plans”) (hereinafter the “Mixed and Shared Funding Exemptive Order”). | ||
b) | Designated Portfolio(s) shares sold pursuant to this Agreement shall be registered under the 1933 Act, duly authorized for issuance and sold in compliance with all applicable federal securities laws including without limitation the 1933 Act, the 1934 Act, and the 0000 Xxx. | ||
c) | The Trust is and shall remain registered under the 0000 Xxx. | ||
d) | The Trust shall amend the registration statement for its shares under the 1933 Act and the 1940 Act from time to time as required in order to affect the continuous offering of its shares. | ||
e) | It will make every effort to ensure that Designated Portfolio(s) shares will be sold in compliance with all applicable state insurance and securities laws. | ||
f) | The Trust shall register and qualify the shares for sale in accordance with the laws of the various states if and to the extent required by applicable law. | ||
g) | MMLIC and the Trust will endeavor to mutually cooperate with respect to the implementation of any modifications necessitated by any change in state insurance laws, regulations or interpretations of the foregoing that affect the Designated Portfolio(s) (a “Law Change”), and to keep each other informed of any Law Change that becomes known to either party. | ||
h) | It 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 the 1940 Act. |
2.3 The Trust has
adopted a plan pursuant to Rule 12b-1 under the 1940 Act an asset-based or
other charge to finance distribution expenses as permitted by applicable law and
regulation. To the extent that the Trust decides to finance distribution
expenses pursuant to Rule 12b-1, the Trust undertakes to have its Board, a
majority of whom are not interested persons of the Trust, formulate and approve
any plan pursuant to Rule 12b-1
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under the 1940 Act
to finance distribution expenses. Certain share classes do not provide for 12b-1
expenses.
2.4 In the event of
such a Law Change as noted in Section 2.2, the Trust agrees that, except in
those circumstances where the Trust has advised MMLIC that its Board has
determined that implementation of a particular Law Change is not in the best
interest of all of the Trust’s shareholders with an explanation regarding why
such action is lawful, any action required by a Law Change will be taken.
2.5 The Distributor
represents and warrants that:
a) | It is duly registered as a broker-dealer 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”). | ||
b) | It is and shall remain duly registered under all applicable federal and state securities laws. | ||
c) | It shall perform its obligations for the Trust in compliance in all material respects with the laws of any applicable state and federal securities laws. |
2.6 The Trust and
the Distributor represent and warrant that:
a) | All of their respective officers, employees, investment advisers, and other individuals or entities dealing with the money and/or securities of the Trust are, and shall continue to be at all times, covered by one or more blanket fidelity bonds or similar coverage for the benefit of the Trust in an amount not less than the minimal coverage required by Rule 17g-1 under the 1940 Act or related provisions as may be promulgated from time to time. | ||
b) | The aforesaid bonds shall include coverage for larceny and embezzlement and shall be issued by a reputable bonding company. |
2.7 The Trust will
provide MMLIC with as much advance notice as is reasonably practicable of any
material change affecting the Designated Portfolio(s) (including, but not
limited to, any material change in the registration statement or prospectus
affecting the Designated Portfolio(s)) and any proxy solicitation affecting the
Designated Portfolio(s) and consult with MMLIC in order to implement any such
change in an orderly manner, recognizing the expenses of changes and attempting
to minimize such expenses by implementing them in conjunction with regular
annual updates of the prospectus for the Contracts. The Trust agrees to share
equitably in expenses incurred by MMLIC as a result of actions taken by the
Trust, consistent with the allocation of expenses contained in Schedule C
attached hereto and incorporated herein by reference.
2.8 MMLIC represents
and warrants, for purposes other than diversification under Section 817 of
the Internal Revenue Code of 1986 as amended (“the Code”), that:
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a) | The Contracts are currently and at the time of issuance will be treated as annuity contracts under applicable provisions of the 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 that the Contracts have ceased to be so treated or that they might not be so treated in the future. | ||
b) | The Account is a “segregated asset account” and that interests in the 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. | ||
c) | It will not purchase Trust shares with assets derived from tax-qualified retirement plans except, indirectly, through Contracts purchased in connection with such plans. |
MMLIC will use every
effort to continue to meet such definitional requirements, and it will notify
the Trust and the Distributor 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.
ARTICLE III
Prospectuses and Proxy Statements; Voting
Prospectuses and Proxy Statements; Voting
3.1 At least
annually, the Trust or Distributor shall provide MMLIC with as many copies of
the Trust’s current prospectus for the Designated Portfolio(s) as MMLIC may
reasonably request for marketing purposes (including distribution to
Contractowners with respect to new sales of a Contract), with expenses to be
borne in accordance with Schedule C hereof. If requested by MMLIC in lieu
thereof Trust or Distributor shall provide such documentation (including a
camera-ready copy and computer diskette of the current prospectus for the
Designated Portfolio(s)) and other assistance as is reasonably necessary in
order for MMLIC once each year (or more frequently if the prospectuses for the
Designated Portfolio(s) are amended) to have the prospectus for the Contracts
and the Trust’s prospectus for the Designated Portfolio(s) printed together in
one document. The Trust and Distributor agree that the prospectus (and
semi-annual and annual reports) for the Designated Portfolio(s) will describe
only the Designated Portfolio(s) and will not name or describe any other
portfolios or series that may be in the Trust unless required by law.
3.2 The Trust’s
prospectus shall state that the Statement of Additional Information (“SAI”) for
the Trust is available from the Trust and the Trust shall provide the SAI free
of charge to any current or prospective contract owner who requests the SAI. The
Trust and Distributor agree to provide the Company with as many copies of the
SAI as reasonably requested.
3.3 The Trust and/or
Distributor shall provide MMLIC with copies of the Trust’s proxy material,
reports to stockholders and other communications to stockholders for the
Designated Portfolio(s) in such quantity, with expenses to be borne in
accordance with
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Schedule C
hereof, as MMLIC may reasonably require to permit timely distribution thereof to
Contractowners.
3.4 If and to the
extent required by law MMLIC shall:
a) | Solicit voting instructions from Contractowners. | ||
b) | Vote the Designated Portfolio(s) shares held in the Account in accordance with instructions received from Contractowners. | ||
c) | Vote Designated Portfolio shares held in the Account for which no instructions have been received in the same proportion as Designated Portfolio(s) shares for which instructions have been received from 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 contract owners. |
MMLIC reserves the
right to vote Trust shares held in any segregated asset account in its own
right, to the extent permitted by law.
3.5 MMLIC shall be
responsible for assuring that each of its separate accounts holding shares of a
Designated Portfolio calculates voting privileges as directed by the Trust and
agreed to by MMLIC and the Trust. The Trust agrees to promptly notify MMLIC of
any changes of interpretations or amendments of the Mixed and Shared Funding
Exemptive Order.
3.6 The Trust will
comply with all provisions of the 1940 Act requiring voting by shareholders, and
in particular the Trust will either 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, 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 directors or
trustees and with whatever rules the SEC may promulgate with respect thereto.
ARTICLE IV
Sales Material and Information
Sales Material and Information
4.1 MMLIC shall
furnish, or shall cause to be furnished, to the Trust or its designee, a copy of
each piece of sales literature or other promotional material that MMLIC
develops or proposes to use and in which the Trust (or a Portfolio thereof) or
the Distributor is named in connection with the Contracts, at least ten
(10) Business Days prior to its use. No such material shall be used if the
Trust objects to such use within five (5) Business Days after receipt of
such material.
4.2 MMLIC shall not
give any information or make any representations or statements on behalf of the
Trust in connection with the sale of the Contracts other than the information
or representations contained in the registration statement, including the
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prospectus or SAI
for the Trust shares, as the same may be amended or supplemented from time to
time, or in sales literature or other promotional material approved by the Trust
or Distributor except with the permission of the Trust or Distributor.
4.3 The Trust or the
Distributor shall furnish, or shall cause to be furnished, to MMLIC, a copy of
each piece of sales literature or other promotional material in which MMLIC
and/or its separate account(s) is named at least ten (10) Business Days
prior to its use. No such material shall be used if MMLIC objects to such use
within five (5) Business Days after receipt of such material.
4.4 The Trust or the
Distributor shall not give any information or make any representations on behalf
of MMLIC or concerning MMLIC, the Account, or the Contracts other than the
information or representations contained in a registration statement, including
the prospectus or SAI for the Contracts, as the same may be amended or
supplemented from time to time, or in sales literature or other promotional
material approved by MMLIC or its designee, except with the permission of MMLIC.
4.5 The Trust will
provide to MMLIC at least one complete copy of all registration statements,
prospectuses, SAIs, 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 Designated Portfolio(s) within a
reasonable period of time following the filing of such document(s) with the SEC
or NASD or other regulatory authorities.
4.6 MMLIC will
provide to the Trust at least one complete copy of all registration statements,
prospectuses, SAIs, 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 the Account, if requested by MMLIC.
4.7 For purposes of
Articles IV and VIII, the phrase “sales literature and other promotional
material” includes, but is not limited to:
a) | 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 media). | ||
b) | 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). | ||
c) | Educational or training materials or other communications distributed or made generally available to some or all agents or employees. | ||
d) | Shareholder reports. | ||
e) | Proxy materials (including solicitations for voting instructions). | ||
f) | Any other material constituting sales literature or advertising under the NASD rules, the 1933 Act or the 1940 Act. |
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4.8 At the request
of any party to this Agreement, each other party will make available to the
other party’s independent auditors and/or representative of the appropriate
regulatory agencies, all records, data and access to operating procedures that
may be reasonably requested in connection with compliance and regulatory
requirements related to this Agreement or any party’s obligations under this
Agreement.
ARTICLE V
Fees and Expenses
Fees and Expenses
5.1 All expenses
incident to performance by the Trust and the Distributor under this Agreement
shall be paid by the appropriate party, as further provided in Schedule C.
The Trust shall see to it that all shares of the Designated Portfolio(s) are
registered and authorized for issuance in accordance with applicable federal law
and, if and to the extent required, in accordance with applicable state laws
prior to their sale.
5.2 The parties
shall bear the expenses of routine annual distribution (mailing costs) of the
Trust’s prospectus and distribution (mailing costs) of the Trust’s proxy
materials and reports to owners of Contracts offered by MMLIC, in accordance
with Schedule C.
ARTICLE VI
Diversification and Qualification
Diversification and Qualification
6.1 The Trust and
the Distributor represent and warrant that:
a) | The Trust will at all times sell its shares and invest its assets in such a manner as to ensure that the Contracts will be treated as annuity contracts under the Code, and the regulations issued thereunder. | ||
b) | Without limiting the scope of the foregoing, the Trust and each Designated Portfolio thereof will at all times comply with Section 817(h) of the Code and Treasury Regulation (S)1.817-5, as amended from time to time, and any Treasury interpretations thereof, relating to the diversification requirements for variable annuity contracts and any amendments or other modifications or successor provisions to such Section or Regulations. | ||
c) | Shares of the Designated Portfolio(s) will be sold only to Participating Insurance Companies and their separate accounts and to Qualified Plans. | ||
d) | No shares of any Designated Portfolio of the Trust will be sold to the general public. | ||
e) | The Trust and each Designated Portfolio is currently qualified as a Regulated Investment Company under Subchapter M of the Code, and that each Designated Portfolio will maintain such qualification (under Subchapter M or any successor or similar provisions) as long as this Agreement is in effect. | ||
f) | They will notify MMLIC immediately upon having a reasonable basis for believing that the Trust or any Designated Portfolio has ceased to comply with the aforesaid Section 817(h) diversification or Subchapter M qualification requirements or might not so comply in the future. |
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6.2 MMLIC agrees
that if the Internal Revenue Service (“IRS”) asserts in writing in connection
with any governmental audit or review of MMLIC or, to MMLIC’s knowledge, of any
Contractowner that any Designated Portfolio has failed to comply with the
diversification requirements of Section 817(h) of the Code or MMLIC otherwise
becomes aware of any facts that could give rise to any claim against the Trust
or Distributor as a result of such a failure or alleged failure that:
a) | MMLIC shall promptly notify the Trust and Distributor of such assertion or potential claim. | ||
b) | MMLIC shall consult with the Trust and Distributor as to how to minimize any liability that may arise as a result of such failure or alleged failure. | ||
c) | MMLIC shall use its best efforts to minimize any liability of the Trust and Distributor 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. | ||
d) | Any written materials to be submitted by MMLIC to the IRS, any Contractowner 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)) shall be provided by MMLIC to the Trust and Distributor (together with any supporting information or analysis) within at least two (2) business days prior to submission. | ||
e) | MMLIC shall provide the Trust and Distributor with such cooperation as the Trust and Distributor shall reasonably request (including, without limitation, by permitting the Trust and Distributor to review the relevant books and records of MMLIC) in order to facilitate review by the Trust and Distributor of any written submissions provided to it or its assessment of the validity or amount of any claim against it arising from such failure or alleged failure. |
ARTICLE VII
Potential Conflicts and Compliance with Mixed and Shared Funding Exemptive Order
Potential Conflicts and Compliance with Mixed and Shared Funding Exemptive Order
7.1 The 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) | Any 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 Designated Portfolio are being managed. | ||
e) | A difference in voting instructions given by variable annuity contractowners or by contract owners of different Participating Insurance Companies. |
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f) | A decision by a Participating Insurance Company to disregard the voting instructions of contract owners. |
The Board shall
promptly inform MMLIC if it determines that an irreconcilable material conflict
exists and the implications thereof.
7.2 MMLIC will
report any potential or existing conflicts of which it is aware to the Board.
MMLIC will assist the Board in carrying out its responsibilities under the Mixed
and Shared Funding Exemptive Order, by providing the Board with all information
reasonably necessary for the Board to consider any issues raised. This includes,
but is not limited to, an obligation by MMLIC to inform the Board whenever
contract owner voting instructions are to be disregarded. Such responsibilities
shall be carried out by MMLIC with a view only to the interests of its
Contractowners.
7.3 If it is
determined by a majority of the Board, or a majority of its trustees who are not
interested persons of the Trust or Distributor to any of the Designated
Portfolios (the “Independent Trustees”), that a material irreconcilable conflict
exists, MMLIC and other Participating Insurance Companies shall, at their
expense and to the extent reasonably practicable (as determined by a majority of
the Independent Trustees), take whatever steps are necessary to remedy or
eliminate the irreconcilable material conflict, up to and including:
a) | Withdrawing the assets allocable to some or all of the separate accounts from the Trust or any Designated Portfolio and reinvesting such assets in a different investment medium, including (but not limited to) another portfolio of the Trust. | ||
b) | 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, 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. | ||
c) | Establishing a new registered management investment company or managed separate account. |
7.4 If a material
irreconcilable conflict arises because of a decision by MMLIC to disregard
Contractowner voting instructions and that decision represents a minority
position or would preclude a majority vote, MMLIC may be required, at the
Trust’s election, to withdraw the Account’s investment in the Trust and
terminate this Agreement; 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 Independent Trustees. 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 and Distributor shall continue to
accept and implement orders by MMLIC for the purchase (and redemption) of shares
of the Trust.
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7.5 If a material
irreconcilable conflict arises because a particular state insurance regulator’s
decision applicable to MMLIC conflicts with the majority of other state
regulators, then MMLIC will withdraw the Account’s investment in the Trust and
terminate this Agreement within six months after the Board informs MMLIC 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 Board.
Until the end of the foregoing six month period, the Trust shall continue to
accept and implement orders by MMLIC for the purchase (and redemption) of shares
of the Trust.
7.6 For purposes of
Sections 7.3 through 7.5 of this Agreement, a majority of the disinterested
members of the 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. MMLIC shall not be
required by Section 7.3 to establish a new funding medium for the Contracts
if an offer to do so has been declined by vote of a majority of Contractowners
affected by the irreconcilable material conflict. In the event that the Board
determines that any proposed action does not adequately remedy any
irreconcilable material conflict, then MMLIC will withdraw the Account’s
investment in the Trust and terminate this Agreement within six (6) months
after the Board informs MMLIC 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 Independent Trustees.
7.7 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, 3.7,
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 such Rule(s) as so amended or adopted.
ARTICLE VIII
Indemnification
Indemnification
8.1 Indemnification
By MMLIC
(a) MMLIC
agrees to indemnify and hold harmless the Trust and Distributor and each of
their respective officers and directors or trustees and each person, if any, who
controls the Trust or Distributor within the meaning of Section 15 of the
1933 Act (collectively, the “Indemnified Parties” for purposes of this
Section 8.1) against any and
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all losses, claims,
expenses, damages and liabilities (including amounts paid in settlement with the
written consent of MMLIC) or litigation (including reasonable legal and other
expenses) to which the Indemnified Parties may become subject under any statute
or regulation, at common law or otherwise, insofar as such losses, claims,
expenses, damages or liabilities (or actions in respect thereof) or settlements
are related to the sale or acquisition of the Trust’s shares or the Contracts
and:
(i) | Arise out of or are based upon any untrue statements or alleged untrue statements of any material fact contained in the registration statement or prospectus or SAI covering 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 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 in writing to MMLIC by or on behalf of the Trust or Distributor for use in the registration statement or prospectus for the Contracts or in the Contracts or sales literature or other promotional material (or any amendment or supplement to any of the foregoing) or otherwise for use in connection with the sale of the Contracts or Trust shares. | ||
(ii) | Arise out of or as a result of statements or representations (other than statements or representations contained in the registration statement, prospectus or sales literature or other promotional material of the Trust not supplied by MMLIC or persons under its control) or wrongful conduct of MMLIC or persons under its control, with respect to the sale or distribution of the Contracts or Trust Shares. | ||
(iii) | Arise out of any untrue statement or alleged untrue statement of a material fact contained in a registration statement, prospectus, SAI, or sales literature or other promotional material of the Trust, or any amendment thereof or supplement thereto, 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 information furnished in writing to the Trust by or on behalf of MMLIC. | ||
(iv) | Arise as a result of any failure by MMLIC to provide the services and furnish the materials under the terms of this Agreement. | ||
(v) | Arise out of or result from any material breach of any representation and/or warranty made by MMLIC in this Agreement or arise out of or result from any other material breach of this Agreement by MMLIC, including without limitation Section 2.8 |
xvi
and Section 6.3 hereof, as limited by and in accordance with the provisions of Sections 8.1(b) and8.1(c) hereof. |
(b) MMLIC
shall not be liable under this indemnification provision with respect to any
losses, claims, expenses, damages, liabilities or litigation to which an
Indemnified Party would otherwise be subject by reason of such Indemnified
Party’s willful misfeasance, bad faith, or negligence in the performance of such
Indemnified Party’s duties or by reason of such Indemnified Party’s reckless
disregard of obligations or duties under this Agreement or to any of the
Indemnified Parties.
(c) MMLIC
shall not be liable under this indemnification provision with respect to any
claim made against an Indemnified Party unless such Indemnified Party shall have
notified MMLIC in writing within a reasonable time after the summons or other
first legal process giving information of the nature of the claim 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 MMLIC of any such claim shall not relieve MMLIC from any liability which
it may have to the Indemnified Party against whom such action is brought
otherwise than on account of this indemnification provision, except to the
extent that MMLIC has been prejudiced by such failure to give notice. In case
any such action is brought against the Indemnified Parties, MMLIC shall be
entitled to participate, at its own expense, in the defense of such action.
MMLIC also shall be entitled to assume the defense thereof, with counsel
satisfactory to the party named in the action. After notice from MMLIC to such
party of MMLIC’s election to assume the defense thereof, the Indemnified Party
shall bear the fees and expenses of any additional counsel retained by it, and
MMLIC will not be liable to such party under this Agreement for any legal or
other expenses subsequently incurred by such party independently in connection
with the defense thereof other than reasonable costs of investigation.
(d) The
Indemnified Parties will promptly notify MMLIC of the commencement of any
litigation or proceedings 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 Trust and Distributor
(a) The
Trust and Distributor agree to indemnify and hold harmless MMLIC and its
directors and officers, each person, if any, who controls MMLIC within the
meaning of Section 15 of the 1933 Act, and MMLIC’s affiliated principal
underwriter of its Contracts (collectively, the “Indemnified Parties” for
purposes of this Section 8.2) against any and all losses, claims, expenses,
damages and liabilities (including amounts paid in settlement with the written
consent of the Trust or Distributor) or litigation (including reasonable legal
and other expenses) to which the Indemnified Parties may be required to pay or
become subject under any statute or regulation, at common law or otherwise,
insofar as such losses, claims, expenses, damages, liabilities or expenses (or
actions in respect thereof) or settlements, are related to the operations of the
Trust or Distributor and arise:
xvii
(i) | As a result of any failure by the Trust or 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 and other qualification requirements specified in Article VI of this Agreement). | ||
(ii) | Out of or result from any material breach of any representation and/or warranty made by the Trust or Distributor in this Agreement or arise out of or result from any other material breach of this Agreement by the Trust. | ||
(iii) | Out of or result from the incorrect or untimely calculation or reporting of the daily net asset value per share (subject to Section 1.10 of this Agreement) or dividend or capital gain distribution rate; as limited by and in accordance with the provisions of Sections 8.3(b) hereof. | ||
(iv) | Out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the registration statement or prospectus or SAI or sales literature or other promotional material of the Trust prepared by the Trust or Distributor (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 in writing to the Trust or Distributor by or on behalf of MMLIC for use in the registration statement or SAI or prospectus for the Trust or in sales literature or other promotional material (or any amendment or supplement to any of the foregoing) or otherwise for use in connection with the sale of the Contracts or Trust shares. | ||
(v) | Out of or as a result of statements or representations (other than statements or representations contained in the registration statement, prospectus, SAI, sales literature or other promotional material for the Contracts not supplied by the Trust or Distributor or persons under its control) or wrongful conduct of the Trust or Distributor or persons under their control, with respect to the sale or distribution of the Contracts or Trust shares. |
xviii
(b) The
Trust or Distributor shall not be liable under this indemnification provision
with respect to any losses, claims, expenses, damages, liabilities or litigation
to which an Indemnified Party would otherwise be subject by reason of such
Indemnified Party’s willful misfeasance, bad faith, or negligence in the
performance of such Indemnified Party’s duties or by reason of such Indemnified
Party’s reckless disregard of obligations or duties under this Agreement or to
any of the Indemnified Parties.
(c) The
Trust or Distributor shall not be liable under this indemnification provision
with respect to any claim made against an Indemnified Party unless such
Indemnified Party shall have notified the Trust or Distributor in writing within
a reasonable time after the summons or other first legal process giving
information of the nature of the claim 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 the Trust or
Distributor of any such claim shall not relieve it from any liability which it
may have to the Indemnified Party against whom such action is brought otherwise
than on account of this indemnification provision, except to the extent that the
Trust or Distributor has been prejudiced by such failure to give notice. In case
any such action is brought against the Indemnified Parties, the Trust and
Distributor will be entitled to participate, at its own expense, in the defense
thereof. The Trust and Distributor shall also be entitled to assume the defense
thereof, with counsel satisfactory to the party named in the action. After
notice from the Trust or Distributor to such party of the Trust or Distributor’s
election to assume the defense thereof, the Indemnified Party shall bear the
fees and expenses of any additional counsel retained by it, and the Trust and
Distributor will not be liable to such party under this Agreement for any legal
or other expenses subsequently incurred by such party independently in
connection with the defense thereof other than reasonable costs of
investigation.
(d) MMLIC
agrees promptly to notify the Trust or Distributor of the commencement of any
litigation or proceeding against them or any of its respective officers or
directors in connection with the Agreement, the issuance or sale of the
Contracts, the operation of the Account, or the sale or acquisition of shares of
the Trust.
ARTICLE IX
Applicable Law
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 Delaware, without regard to the Delaware Conflict
of Laws provisions.
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, the Mixed and Shared Funding Exemptive Order) and the terms hereof
shall be interpreted and construed in accordance therewith.
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ARTICLE X
PRIVACY AND CONFIDENTIAL INFORMATION
PRIVACY AND CONFIDENTIAL INFORMATION
10.1 MMLIC
acknowledges that they must comply with the information security standards of
the Xxxxx-Xxxxx-Xxxxxx Act (15 USC 6801, 6805(b)(1)) (“Xxxxx-Xxxxx-Xxxxxx Act”)
and all regulations under said act, as well as all other statutory and
regulatory acts and requirements including the SEC Regulation S-P sections
regarding “non-public personal information” (“Protected Information”), as well
as the Trust’s own internal information security programs and guidelines. MMLIC
will reasonably assist the Trust in conforming to and complying with any and all
information protection policies, including delivery of the Trust(s) privacy
promise.
10.2 MMLIC agrees to
not disclose or use Protected Information except in the ordinary course of
business as necessary to carry out the terms of this Agreement and in
compliance with Regulation S-P including, but not limited to, Section 11 of
Regulation S-P, and other applicable Federal and state statutes and
regulations regarding privacy of consumer information.
10.3 Confidential
information shall mean information that a party (“Discloser”) discloses to
another party (“Recipient”), or to which the Recipient obtains access to and
relates to the Discloser, the Trust(s), the Advisor, and/or a third-party
supplier or licensor who has made confidential or proprietary information
available to another party. Confidential information includes, but is not
limited to:
(a) | Any and all proprietary information | ||
(b) | Data | ||
(c) | Trade secrets | ||
(d) | Business information | ||
(e) | Customer and Customer account information |
The Recipient shall
not disclose or use confidential information other than in the course of
ordinary business to carry out the purpose for which the confidential
information was provided to the Recipient. The Recipient shall not disclose
Customer information on other than a “need to know” basis and then only to:
(a) | Recipient’s employees or officers. | ||
(b) | Affiliates of Recipient provided they would be restricted in use and redisclosure to the same extent as the Recipient. | ||
(c) | Selected subcontractors who have entered into confidentiality agreements no less restrictive that the terms of this Agreement. | ||
(d) | Any exceptions as listed in 15 USC 6802(e) and/or other associated regulations established under the Xxxxx-Xxxxx-Xxxxxx Act or other Federal and/or state statutes. |
xx
Before any
disclosure of confidential information as required by law, the Recipient must
notify the Discloser of any actual or threatened legal compulsion of disclosure
and/or any legal obligation of disclosure immediately upon becoming obligated.
The Recipient must also cooperate with the Discloser’s reasonable, lawful effort
to resist, limit, or delay disclosure. Any requests or demands for confidential
information by any applicable regulator shall not require notification or any
other action by the Trust or the Advisor.
These
confidentiality obligations do not apply to information which:
(a) | Recipient already rightfully possesses when given by Discloser. | ||
(b) | Recipient develops independently of the Discloser. | ||
(c) | Becomes “public information” by methods other than by breach of this section. | ||
(d) | Recipient rightfully receives from a third party without the obligation of confidentiality. |
ARTICLE XI
ANTI-MONEY LAUNDERING REGULATIONS
ANTI-MONEY LAUNDERING REGULATIONS
11.1 To allow the
Trusts to comply with applicable “Know Your Customer” and/or any Federal or
state Anti-Money Laundering laws and regulations, MMLIC will, upon request by
the Trust(s), the independent Board of Trustees of the Trust(s), or the
Distributor, will provide, in a timely manner, any documentation deemed
necessary regarding MMLIC’s “Know Your Customer” and/or Your Anti-Money
Laundering policies and procedures. MMLIC agrees to:
(a) | Have in place established policies and procedures designed to prevent and detect money laundering. | ||
(b) | Meet applicable anti-money laundering legal and regulatory requirements. | ||
(c) | Have procedures in place to ensure that none of your customers that invest within Trust(s) shares appear on or are covered by any list or prohibited persons, entities, and/or jurisdictions maintained and administered by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”). | ||
(d) | Identify and continue to identify and retain all documentation necessary to identify Your Customers and their sources of funds. | ||
(e) | Monitor for suspicious transactions and to assist the Trust in monitoring for such transactions upon request from the Trust, the transfer agent, or the independent Board of Trustees of the Trust(s). |
11.2 At time of
acceptance of the Agreement, MMLIC does not believe, nor have any current reason
to believe, and will immediately notify the Trusts if MMLIC comes to have any
reason to believe that any of MMLIC’s customers that invest within Trust(s)
shares through MMLIC are engaged in money-laundering activities or are
associated with any terrorist and/or other individuals, entities or
organizations sanctioned by the United States or any other jurisdictions in
which MMLIC does business, or appear on any lists of prohibited persons,
entities and/or jurisdictions maintained and administered by OFAC.
xxi
The provisions of
the section shall survive the termination of this Agreement.
ARTICLE XII
Termination
Termination
12.1 This Agreement
shall terminate:
(a) | At the option of any party, with or without cause, with respect to some or all Designated Portfolios, upon ninety (90) days advance written notice delivered to the other parties; provided, however, that such notice shall not be given earlier than six (6) months following the date of this Agreement. | ||
(b) | At the option of MMLIC by written notice to the other parties with respect to any Designated Portfolio based upon MMLIC’s determination that shares of such Designated Portfolio are not reasonably available to meet the requirements of the contracts. | ||
(c) | At the option of MMLIC by written notice to 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 MMLIC. | ||
(d) | At the option of the Trust or Distributor in the event that formal administrative proceedings are instituted against MMLIC by the NASD, the SEC, the Insurance Commissioner or like official of any state or any other regulatory body regarding MMLIC’s duties under this Agreement or related to the sale of the Contracts, the operation of any Account, or the purchase of the Trust shares, if, in each case, the Trust or Distributor, as the case may be, reasonably determines in its sole judgment exercised in good faith, that any such administrative proceedings will have a material adverse effect upon the ability of MMLIC to perform its obligations under this Agreement. | ||
(e) | At the option of MMLIC in the event that formal administrative proceedings are instituted against the Trust or Distributor by the NASD, the SEC, or any state securities or insurance department or any other regulatory body, if MMLIC reasonably determines in its sole judgment exercised in good faith, that any such administrative proceedings will have a material adverse effect upon the ability of the Trust or Distributor to perform their obligations under this Agreement. | ||
(f) | At the option of MMLIC by written notice to the Trust with respect to any Designated Portfolio if MMLIC reasonably believes that the Designated Portfolio will fail to meet the Section 817(h) diversification requirements or Subchapter M qualifications specified in Article VI hereof. | ||
(g) | At the option of either the Trust or Distributor, if the Trust or Distributor, respectively, shall determine, in its sole judgment reasonably exercised in good faith, that MMLIC has suffered a material adverse change in its business or financial condition or is the subject of material adverse publicity and that material adverse change or publicity will have a material adverse impact on MMLIC’s ability to perform its obligations under this Agreement. The Trust or Distributor shall notify MMLIC of that determination and its intent to terminate |
xxii
this Agreement, and after considering the actions taken by MMLIC and any other changes in circumstances since the giving of such a notice, the determination of the Trust or Distributor shall continue to apply on the ninetieth (90th) day following the giving of that notice, which sixtieth day shall be the effective date of termination. | |||
(h) | At the option of MMLIC, if MMLIC shall determine, in its sole judgment reasonably exercised in good faith, that the Trust or Distributor has suffered a material adverse change in its business or financial condition or is the subject of material adverse publicity and that material adverse change or publicity will have a material adverse impact on the Trust’s or Distributor’s ability to perform its obligations under this Agreement. MMLIC will notify the Trust or Distributor, as appropriate, of that determination and its intent to terminate this Agreement, and after considering the actions taken by the Trust or Distributor and any other changes in circumstances since the giving of such a notice, the determination of MMLIC shall continue to apply on the ninetieth (90th) day following the giving of that notice, which ninetieth day shall be the effective date of termination. | ||
(i) | At the option of any non-defaulting party hereto in the event of a material breach of this Agreement by any party hereto (the “defaulting party”) other than as described in Section 10.1(a)-(j); provided, that the non-defaulting party gives written notice thereof to the defaulting party, with copies of such notice to all other non-defaulting parties, and if such breach shall not have been remedied within thirty (30) days after such written notice is given, then the non-defaulting party giving such written notice may terminate this Agreement by giving thirty (30) days written notice of termination to the defaulting party. | ||
(j) | At any time upon written agreement of all parties to this Agreement. |
12.2 Effect of
Termination
Notwithstanding any
termination of this Agreement, other than as a result of a failure by either the
Trust or MMLIC to meet Section 817(h) of the Code diversification requirements,
the Trust and Distributor shall, at the option of MMLIC, continue to make
available additional shares of the Designated Portfolio(s) 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 shall be permitted to reallocate investments in the Designated
Portfolio(s), redeem investments in the Designated Portfolio(s) and/or invest in
the Designated Portfolio(s) upon the making of additional purchase payments
under the Existing Contracts. The parties agree that this Section 12.3 shall not
apply to any terminations under Article VII and the effect of such
Article VII terminations shall be governed by Article VII of this
Agreement.
12.3 Surviving
Provisions
Notwithstanding
any termination of this Agreement, each party’s obligations under
Article VIII to indemnify other parties shall survive and not be affected
by any
xxiii
termination of this
Agreement. In addition, with respect to Existing Contracts, all provisions of
this Agreement shall also survive and not be affected by any termination of this
Agreement.
ARTICLE XIII
Notices
Notices
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
parties.
If to ING Variable
Insurance Trust:
ING Variable
Products Trust
Attn: Chief Counsel
0000 X Xxxxxxxxxx Xxxxx Xxxx
Xxxxxxxxxx, XX 00000
Attn: Chief Counsel
0000 X Xxxxxxxxxx Xxxxx Xxxx
Xxxxxxxxxx, XX 00000
If to ING Funds
Distributor, LLC:
ING Funds
Distributor, LLC
Attn: Xxxxxx Xxxxxxxxx
0000 X Xxxxxxxxxx Xxxxx Xxxx
Xxxxxxxxxx, XX 00000
Attn: Xxxxxx Xxxxxxxxx
0000 X Xxxxxxxxxx Xxxxx Xxxx
Xxxxxxxxxx, XX 00000
If to MMLIC:
Massachusetts Mutual
Life Insurance Company
Annuity Development & Marketing
000 Xxxxxx Xxxxxx Xxxx.
Xxxxxxx XX 00000
Annuity Development & Marketing
000 Xxxxxx Xxxxxx Xxxx.
Xxxxxxx XX 00000
ARTICLE XIV
Miscellaneous
Miscellaneous
14.1 Subject to the
requirements of legal process and regulatory authority, each party hereto shall
treat as confidential the names and addresses of the owners of the Contracts
and all information reasonably identified as confidential in writing by any
other party hereto and, except as permitted by this Agreement, shall not
disclose, disseminate or utilize such names and addresses and other confidential
information without the express written consent of the affected party until such
time as such information may come into
xxiv
the public domain.
Without limiting the foregoing, no party hereto shall disclose any information
that another party has designated as proprietary.
14.2 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.
14.3 This Agreement
may be executed simultaneously in two or more counterparts, each of which taken
together shall constitute one and the same instrument.
14.4 If any
provision of this Agreement shall be held or made invalid by a court decision,
statute, rule or otherwise, the remainder of the Agreement shall not be affected
thereby.
14.5 Each party
hereto shall cooperate with each other party and all appropriate governmental
authorities (including without limitation the SEC, the NASD and state insurance
regulators) and shall permit 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. Notwithstanding the
generality of the foregoing, each party hereto further agrees to furnish any
applicable state insurance department as may apply with any information or
reports in connection with services provided under this Agreement which may be
requested by the state in order to ascertain whether the variable annuity
operations of MMLIC are being conducted in a manner consistent with any
applicable law or regulations.
14.6 Any controversy
or claim arising out of or relating to this Agreement, or breach thereof, shall
be settled by arbitration in a forum jointly selected by the relevant parties
(but if applicable law requires some other forum, then such other forum) in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association, and judgment upon the award rendered by the arbitrators may be
entered in any court having jurisdiction thereof.
14.7 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,
which the parties hereto are entitled to under state and federal laws.
14.8 This Agreement
or any of the rights and obligations hereunder may not be assigned by any party
without the prior written consent of all parties hereto.
14.9 MMLIC agrees
that the obligations assumed by the Trust and/or Distributor pursuant to this
Agreement shall be limited in any case to the Trust and/or Distributor and
their respective assets and MMLIC shall not seek satisfaction of any such
obligation from the shareholders of the Trust and/or Distributor, the directors,
officers, employees or agents of the Trust and/or Distributor, or any of them.
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14.10 The Trust and
Distributor agree that the obligations assumed by MMLIC pursuant to this
Agreement shall be limited in any case to MMLIC and its assets and neither the
Trust nor the Distributor shall seek satisfaction of any such obligation from
the shareholders of MMLIC, the directors, officers, employees or agents of the
MMLIC, or any of them.
14.11 No provision
of this Agreement may be deemed or construed to modify or supersede any
contractual rights, duties, or indemnifications, as between the Trust and the
Distributor.
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.
MASSACHUSETTS MUTUAL
LIFE INSURANCE COMPANY
By
its authorized officer,
By:
/s/ Illegible
Title: SVP
Date: 4/26/06
ING
VARIABLE PRODUCTS TRUST
By
its authorized officer,
By:
/s/ Rob Naka
Title: EVP
Date:
ING
FUNDS DISTRIBUTOR, LLC
By
its authorized officer,
By:
/s/ Xxxx Xxxxx
Title: SVP
Date: 4/27/06
xxvi
SCHEDULE A
Contracts:
MassMutual
TransitionsSM
MassMutual
EvolutionSM
MassMutual Artistry
MassMutual
Transitions SelectSM
Panaorama Passage
Panorama Premier
Separate
Accounts:
xxvii
SCHEDULE B
Designated
Portfolio(s):
ING VP Real Estate
Portfolio- Class S
xxviii
SCHEDULE C
EXPENSES
The Trust and/or the
Distributor and MMLIC will coordinate the functions and pay the costs of the
completing these functions based upon an allocation of costs in the tables
below. Costs shall be allocated to reflect the Trust’s share of the total costs
determined according to the number of pages of the Trust’s respective portions
of the documents.
Item | Function | Coordinating Party | Expenses Paid By | |||
Mutual Fund Prospectus |
Printing of combined prospectuses | Trust provides PDF MMLIC prints |
MMLIC Trust reimburses prorata | |||
|
||||||
|
Providing adequate supply of prospectuses and SAIs for designated portfolios and Trust | MMLIC | — | |||
|
||||||
|
Distribution (includes postage) to new and inforce clients | MMLIC | Trust | |||
|
||||||
|
Distribution (includes postage) to prospective clients | MMLIC | MMLIC | |||
|
||||||
Trust Prospectus Annual
Update and Distribution |
Trust provides PDF MMLIC prints & distributes |
MMLIC Trust reimburses prorata | ||||
|
||||||
Product Prospectus Update & Distribution |
MMLIC | MMLIC | ||||
|
||||||
Mutual Fund SAI |
Trust | Trust | ||||
|
||||||
Product SAI |
MMLIC | MMLIC | ||||
|
||||||
Trust Proxy Material
|
Trust | Trust | ||||
|
||||||
Trust Annual and/or Semi Annual reports |
Trust provides MMLIC distributes |
Trust |
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