RULE 22c-2 AGREEMENT
Exhibit h12c
This Agreement entered into as of April 16, 2007 by and between Principal Life Insurance Company
(the Company) and Summit Mutual Funds, Inc. (the Fund) with an effective date of October 16, 2007.
Prior to the effective date of this Agreement, the Fund and the Company agree that any request made
to the Company by the Fund for shareholder transaction information, and the Company’s response to
such request, shall be governed by whatever agreement is in effect between the Fund and the Company
that is intended to govern such requests.
1. The terms below shall have the following meanings, unless a different meaning is clearly
required by the contexts:
(a) The term “Fund” includes the fund’s principal underwriter and transfer agent.
The term not does include any “excepted funds” as defined in SEC Rule 22c-2(b)
under the Investment Company Act of 1940.
(b) The term “Shares” means the interests of Contract owners corresponding to the
redeemable securities of record issued by the Fund under the Investment Company
Act of 1940 that are held by the Company.
(c) The term “Contract owner” means the holder of interests in a variable annuity or
variable life insurance contract issued by the Company (“Contract”), or a participant
in an employee benefit plan with a beneficial interest in a Contract.
(d) The term “Contract owner-Initiated Transfer Purchase” means a transaction that
is initiated or directed by a Contract owner that results in a transfer of assets within a
Contract to a Fund, but does not include transactions that are executed: (i)
automatically pursuant to a contractual or systematic program or enrollment such as
transfer of assets within a Contract to a Fund as a result of “dollar cost averaging”
programs, insurance company approved asset allocation programs, or automatic
rebalancing programs; (ii) pursuant to a Contract death benefit; (iii) one-time step-up
in Contract value pursuant to a Contract death benefit; (iv) allocation of assets to a
Fund through a Contract as a result of payments such as loan repayments, scheduled
contributions, retirement plan salary reduction contributions, or planned premium
payments to the Contract; or (v) pre-arranged transfers at the conclusion of a
required free look period.
(e) The term “Contract owner-Initiated Transfer Redemption” means a transaction
that is initiated or directed by a Contract owner that results in a transfer of assets
within a Contract out of a Fund, but does not include transactions that are executed:
(i) automatically pursuant to a contractual or systematic program or enrollments such
as transfers of assets within a Contract out of a Fund as a result of annuity payouts,
loans, systematic withdrawal programs, insurance company approved asset
allocation programs and automatic rebalancing programs; (ii) as a result of any
deduction of charges or fees under a Contract; (iii) within a Contract out of a Fund as
Contract#
Sum-07487-2007-04-16-IMG
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a result of scheduled withdrawals or surrenders from a Contract; or (iv) as a result of payment
of a death benefit from a Contract.
(f) The term “written” includes electronic writings and facsimile transmissions.
2. NOW, THEREFORE, the Fund and the Company hereby agree as follows:
(a) Company agrees to provide the Fund or its designee, upon written request, the
taxpayer identification number (“TIN”), “), the Individual/International Taxpayer
Identification Number (“ITIN”)*, if known, of any or all Contract owner(s) of the
account, and the amount, date and transaction type (purchase, redemption, transfer,
or exchange) of every purchase, redemption, transfer, or exchange of Shares held
through an account maintained by the Company during the period covered by the
request.
(b) Requests must set forth a specific period, not to exceed 90 days from the date of
the request, for which transaction information is sought. The Fund may request
transaction information older than 90 days from the date of the request as it deems
necessary to investigate compliance with policies established by the Fund for the
purpose of eliminating or reducing any dilution of the value of the outstanding shares
issued by the Fund.
(c) Company agrees to provide, promptly but in no event later than five (5) business days
upon request of the Fund or its designee, the requested information specified in 2.(a). If
requested by the Fund or its designee, Company agrees to use best efforts to determine
promptly whether any specific person about whom it has received the identification and
transaction information specified in 2.(a) is itself a financial intermediary (“indirect
intermediary”) and, upon further request of the Fund or its designee, promptly either (i)
provide (or arrange to have provided) the information set forth in 2.(a) for those
shareholders who hold an account with an indirect intermediary or (ii) restrict or prohibit
the indirect intermediary from purchasing, in nominee name on behalf of other persons,
securities issued by the Fund. Company additionally agrees to inform the Fund whether it plans
to perform (i) or (ii).
Responses required by this paragraph must be communicated in writing and in a format mutually
agreed upon by the Fund or its designee and the Company; and to the extent practicable, the
format for any transaction information provided to the Fund should be consistent with the NSCC
Standardized Data Reporting Format.
| * | According to the IRS’ website, the ITIN refers to the Individual Taxpayer Identification number, which is a nine-digit number that always begins with the number 9 and has a 7 or 8 in the fourth digit, example 9XX-7X-XXXX. The IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain a Social Security Number (SSN) from the Social Security Administration (SSA). SEC Rule 22c-2 inadvertently refers to the ITIN as the International Taxpayer Identification Number. |
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(d) The Fund agrees not to use the information received pursuant to this Agreement
for any purpose other than as necessary to comply with the provisions of Rule 22c-2
or to fulfill other regulatory or legal requirements subject to the privacy provisions of
Title V of the Xxxxx-Xxxxx-Xxxxxx Act (Public Law 106-102) and comparable state
laws.
(e) Company agrees to execute written instructions from the Fund to restrict or
prohibit further purchases or exchanges of Shares by a Contract owner that has been
identified by the Fund as having engaged in transactions of the Fund’s Shares
(directly or indirectly through the Company’s account) that violate policies
established by the Fund for the purpose of eliminating or reducing any dilution of the
value of the outstanding Shares issued by the Fund. Unless otherwise directed by the
Fund, any such restrictions or prohibitions shall only apply to Contract owner-
Initiated Transfer Purchases or Contract owner-Initiated Transfer Redemptions that
are effected directly or indirectly through Company.
(f) Instructions must include the TIN, ITIN, or GII and the specific individual
Contract or policy number associated with the Contract owner, if known, and the
specific restriction(s) to be executed. If the TIN, ITIN, GII or the specific individual
Contract or policy number associated with the Contract owner is not known, the
instructions must include an equivalent identifying number of the Contract owner(s)
or account(s) or other agreed upon information to which the instruction relates. Upon
request of the Company, Fund agrees to provide to the Company, along with any
written instructions to prohibit further purchases or exchanges of Shares by Contract
owner, information regarding those trades of the contract holder that violated the
Fund’s policies.
(g) Company agrees to execute instructions as soon as reasonably practicable, but not
later than ten business days after receipt of the instructions by the Company.
(h) Company must provide written confirmation to the Fund that instructions have been executed.
Company agrees to provide confirmation as soon as reasonably practicable, but not later than
ten business days after the instructions have been executed.
3. The parties have entered into one or more Fund Participation Agreements between or
among them for the purchase and redemption of shares of the Funds by the Accounts in
connection with the Contracts. This Agreement supplements those Fund Participation
Agreements. To the extent the terms of this Agreement conflict with the terms of a Fund
Participation Agreement, the terms of this Agreement shall control.
4. This Agreement will terminate upon the termination of the Fund participation
Agreement.
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IN WITNESS WHEREOF, the undersigned has caused this Agreement to be executed as of April 16, 2007.
PRINCIPAL LIFE INSURANCE COMPANY |
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/s/ Xxxx Xxxxxx
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Title: Director — Product Management |
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SUMMIT MUTUAL FUNDS, INC. |
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/s/ Xxxx X. Xxxxxxxx
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Title: Vice President |
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