PARTICIPATION AGREEMENT
AMONG
DELAWARE GROUP PREMIUM FUND, INC.
AND
LINCOLN LIFE & ANNUITY COMPANY OF NEW YORK
AND
DELAWARE DISTRIBUTORS, LP
THIS AGREEMENT, made and entered into this 15th day of October,
1999, by and between DELAWARE GROUP PREMIUM FUND, INC., a corporation
organized under the laws of Maryland (the "Fund"), and LINCOLN LIFE & ANNUITY
COMPANY OF NEW YORK, a New York insurance corporation (the "Company"), on its
own behalf and on behalf of each separate account of the Company named in
Schedule 1 to this Agreement as in effect at the time this Agreement is
executed and such other separate accounts that may be added to Schedule 1
from time to time in accordance with the provisions of Article XI of this
Agreement (each such account referred to as the "Account"), and DELAWARE
DISTRIBUTORS, LP, a Delaware limited partnership (the "Distributor").
WHEREAS, the Fund is engaged in business as an open-end management
investment company and was established for the purpose of serving as the
investment vehicle for separate accounts established for variable life
insurance policies and variable annuity contracts (collectively referred to
as "Variable Insurance Products," the owners of such products being referred
to as "Product owners") to be offered by insurance companies which have
entered into participation agreements with the Fund ("Participating Insurance
Companies"); and
WHEREAS, the common stock of the Fund (the "Fund shares") consists
of separate series ("Series") issuing separate classes of shares ("Series
shares"), each such class representing an interest in a particular managed
portfolio of securities and other assets; and
WHEREAS, the Series available to these Variable Insurance Products
are listed on Schedule 4, as may be amended; and
WHEREAS, the Fund filed with the Securities and Exchange Commission
(the "SEC") and the SEC has declared effective a registration statement
(referred to herein as the "Fund Registration Statement" and the prospectus
contained therein, or filed pursuant to Rule 497 under the 1933 Act, referred
to herein as the "Fund Prospectus") on Form N-lA to register itself as an
open-end management investment company under the Investment Company Act of
1940, as amended (the "1940 Act"), and the Fund shares under the Securities
Act of 1933, as amended (the "1933 Act"); and
WHEREAS, the Company has filed a registration statement with the SEC
to register under the 1933 Act, unless exempt, certain variable annuity
contracts described in Schedule 2 to this Agreement as in effect at the time
this Agreement is executed and such other variable annuity contracts and
variable life insurance policies which may be added to Schedule 2 from time
to time in accordance with Article XI of this Agreement (such policies and
contracts shall be referred to herein collectively as the "Contracts," each
such registration statement for a class or classes of contracts listed on
Schedule 2 being referred to as the "Contracts Registration Statement" and
the prospectus for each such class or classes being referred to herein as the
"Contracts Prospectus," and the owners of the such contracts, as
distinguished from all Product Owners, being referred to as
"Contractowners"); and
WHEREAS, each Account, a validly existing separate account, duly
authorized by the Company on the date set forth on Schedule 1, sets aside and
invests assets attributable to the Contracts; and
WHEREAS, the Company has registered or will have registered each
Account, unless exempt, with the SEC as a unit investment trust under the
1940 Act before any Contracts are issued by that Account; and
WHEREAS, the Distributor 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, the Distributor and the Fund have entered into an
agreement (the "Fund Distribution Agreement") pursuant to which the
Distributor will distribute Fund shares; and
WHEREAS, Delaware Management Company (the "Investment Manager") is
registered as an investment adviser under the INVESTMENT ADVISERS ACT OF 1940
and any applicable state securities laws and serves as an investment manager
to the Fund pursuant to an agreement; and
WHEREAS, to the extent permitted by applicable insurance laws and
regulations, the Company intends to purchase Series shares on behalf of each
Account to fund its Contracts and the Distributor is authorized to sell such
Series shares to unit investment trusts such as the Accounts at net asset
value;
NOW, THEREFORE, in consideration of their mutual promises, the
Company, the Fund and the Distributor agree as follows:
ARTICLE I. SALE OF FUND SHARES
1.1. The Distributor agrees to sell to the Company those Series
shares which the Company orders on behalf of the Account, executing such
orders on a daily basis in accordance with Section 1.4 of this Agreement.
2
1.2. The Fund agrees to make the shares of its Series available for
purchase by the Company on behalf of the Account at the then applicable net
asset value per share on Business Days as defined in Section 1.4 of this
Agreement, and the Fund shall use its best efforts to calculate such net
asset value by 6:00 p.m., New York time, on each such Business Day.
Notwithstanding any other provision in this Agreement to the contrary, the
Board of Directors of the Fund (the "Fund Board") may suspend or terminate
the offering of Fund shares of any Series, if such action is required by law
or by regulatory authorities having jurisdiction or if, in the sole
discretion of the Fund Board acting in good faith and in light of its
fiduciary duties under Federal and any applicable state laws, suspension or
termination is necessary and in the best interests of the shareholders of any
Series (it being understood that "shareholders" for this purpose shall mean
Product owners). Such suspension or termination of the offering of any Series
of Fund shares does not by itself constitute the termination of this
Agreement.
1.3. The Fund agrees to redeem, at the Company's request, any full
or fractional shares of the Fund held by the Account or the Company,
executing such requests at the net asset value on a daily basis in accordance
with Section 1.4 of this Agreement, the applicable provisions of the 1940 Act
and the then currently effective Fund Prospectus. Notwithstanding the
foregoing, the Fund may delay redemption of Fund shares of any Series to the
extent permitted by the 1940 Act, any rules, regulations or orders
thereunder, or the then currently effective Fund Prospectus.
1.4.
(a) For purposes of Sections 1.1, 1.2 and 1.3, the Company
shall be the agent of the Fund for the limited purpose of receiving
redemption and purchase requests from the Account (but not from the
general account of the Company), and receipt on any Business Day by
the Company as such limited agent of the Fund prior to the time
prescribed in the current Fund Prospectus (which as of the date of
execution of this Agreement is the close of trading on the New York
Stock Exchange) shall constitute receipt by the Fund on that same
Business Day, provided that the Fund receives notice of such
redemption or purchase request by 11:00 a.m., New York time on the
next following Business Day. For purposes of this Agreement,
"Business Day" shall mean any day on which the New York Stock
Exchange is open for trading.
(b) The Company shall pay for shares of each Series on the
same day that it places an order with the Fund to purchase those
Series shares for an Account. Payment for Series shares will be
made by the Account or the Company in Federal Funds transmitted to
the Fund by wire to be received by 11:00 a.m., New York time on the
day the Fund is properly notified of the purchase order for Series
shares. If Federal Funds are not received on time, such funds will
be invested, and Series shares purchased thereby will be issued, as
soon as practicable.
3
(c) Payment for Series shares redeemed by the Account or the
Company will be made in Federal Funds transmitted to the Company by
wire on the day the Fund is notified of the redemption order of
Series shares, except that the Fund reserves the right to delay
payment of redemption proceeds, but in no event may such payment be
delayed longer than the period permitted under Section 22(e) of the
1940 Act. Neither the Fund nor the Distributor shall bear any
responsibility whatsoever for the proper disbursement or crediting
of redemption proceeds; the Company alone shall be responsible for
such action.
1.5. Issuance and transfer of Fund shares will be by book entry
only. Stock certificates will not be issued to the Company or the Account.
Purchase and redemption orders for Fund shares will be recorded in an
appropriate ledger for the Account or the appropriate subaccount of the
Account.
1.6. The Fund shall furnish notice as soon as reasonably
practicable to the Company of any income dividends or capital gain
distributions payable on any Series shares. The Company, on its behalf and on
behalf of the Account, hereby elects to receive all such dividends and
distributions as are payable on any Series shares in the form of additional
shares of that Series. The Company reserves the right, on its behalf and on
behalf of the Account, to revoke this election and to receive all such
dividends in cash. The Fund shall notify the Company of the number of Series
shares so issued as payment of such dividends and distributions.
1.7 The Fund shall use its best efforts to make the net asset value
per share for each Series available to the Company by 6 p.m., New York time
each Business Day, and in any event, as soon as reasonably practicable after
the net asset value per share for such Series is calculated, and shall
calculate such net asset value in accordance with the then currently
effective Fund Prospectus. Neither the Fund, any Series, the Distributor, nor
the Investment Manager nor any of their affiliates shall be liable for any
information provided to the Company pursuant to this Agreement which
information is based on incorrect information supplied by the Company to the
Fund, the Distributor or the Investment Manager.
1.8
(a) The Company may withdraw the Account's investment in the
Fund or a Series only: (i) as necessary to facilitate Contract
owner requests; (ii) upon a determination by a majority of the Fund
Board, or a majority of disinterested Fund Board members, that an
irreconcilable material conflict exists among the interests of (x)
any Product Owners or (y) the interests of the Participating
Insurance Companies investing in the Fund; (iii) upon requisite
vote of the Contractowners having an interest in the affected
Series to substitute the shares of another investment company for
Series shares in accordance with the terms of the Contracts; (iv)
as required by state and/or federal laws or regulations or judicial
or other legal precedent of general application; or (v) at the
Company's sole discretion, pursuant to an order of the SEC under
Section 26(b) of the 1940 Act.
4
(b) The parties hereto acknowledge that the arrangement
contemplated by this Agreement is not exclusive and that the Fund
shares may be sold to other insurance companies (subject to Section
1.9 hereof) and the cash value of the Contracts may be invested in
other investment companies.
(c) The Company shall not, without prior notice to the
Distributor (unless otherwise required by applicable law), take any
action to operate the Account as a management investment company
under the 0000 Xxx.
1.9. The Fund and the Distributor agree that Fund shares will be
sold only to Participating Insurance Companies and their separate accounts.
The Fund and the Distributor will not sell Fund shares to any insurance
company or separate account unless an agreement complying with Article VII of
this Agreement is in effect to govern such sales. No Fund shares of any
Series will be sold to the general public.
ARTICLE II. REPRESENTATIONS AND WARRANTIES
2.1 The Company represents and warrants (a) that the Contracts are
registered under the 1933 Act or will be so registered before the issuance
thereof, unless exempt, (b) that the Contracts will be issued in compliance
in all material respects with all applicable Federal and state laws and (c)
that the Company will require of every person distributing the Contracts that
the Contracts be offered and sold in compliance in all material respects with
all applicable Federal and state laws. The Company further represents and
warrants that it is an insurance company duly organized and in good standing
under applicable law and that it has legally and validly authorized each
Account as a separate account under Section 4240 of the New York Insurance
Law (NYIL), and has registered or, prior to the issuance of any Contracts,
will register each Account as a unit investment trust in accordance with the
provisions of the 1940 Act, unless exempt, to serve as a separate account for
its Contracts, and that it will maintain such registrations for so long as
the law requires.
2.2. The Fund represents and warrants that Fund shares sold
pursuant to this Agreement shall be registered under the 1933 Act and duly
authorized for issuance in accordance with applicable law and that the Fund
is and shall remain registered under the 1940 Act for so long as the Fund
shares are sold. The Fund further represents and warrants that it is a
corporation duly organized and in good standing under the laws of Maryland.
2.3. The Fund represents and warrants that it currently qualifies
as a Regulated Investment Company under Subchapter M of the Internal Revenue
Code of 1986, as amended (the "Code"). The Fund further represents and
warrants that it will make every effort to continue to qualify and to
maintain such qualification (under Subchapter M or any successor or similar
provision), and that it will notify the Company 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.
2.4. The Fund represents and warrants that it will comply with
Section 817(h) of the Code, and all regulations issued thereunder.
5
2.5. The Company represents that the Contracts are currently and at
the time of issuance will be treated as annuity contracts or life insurance
policies, whichever is appropriate, under applicable provisions of the Code.
The Company shall make every effort to maintain such treatment and shall
notify the Fund 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.
2.6. The Fund represents that the Fund's investment policies, fees
and expenses, and operations are and shall at all times remain in material
compliance with the laws of the state of Maryland, to the extent required to
perform this Agreement; and with state-mandated investment restrictions (if
any) set forth on Schedule 3, as amended from time to time by the Company in
accordance with Section 6.6. The Fund, however, makes no representation as to
whether any aspect of its operations (including, but not limited to, fees and
expenses and investment policies) otherwise complies with the insurance laws
or regulations of any state. The Company alone shall be responsible for
informing the Fund of any investment restrictions imposed by state insurance
law and applicable to the Fund.
2.7. The Distributor represents and warrants that it is duly
registered as a broker-dealer under the 1934 Act, a member in good standing
of the NASD, and duly registered as a broker-dealer under applicable state
securities laws; its operations are in compliance with applicable law, and it
will distribute the Fund shares according to applicable law.
2.8. The Distributor, on behalf of the Investment Manager,
represents and warrants that the Investment Manager is registered as an
investment adviser under the Investment Advisers Act of 1940 and is in
compliance with applicable federal and state securities laws.
2.9. The Fund represents and warrants that it has and maintains a
fidelity bond in accordance with Rule 17g-1 under the 1940 Act. The Fund will
immediately notify the Company in the event the fidelity bond coverage should
lapse at any time.
ARTICLE III. PROSPECTUSES AND PROXY STATEMENTS; SALES MATERIAL AND OTHER
INFORMATION
3.1. The Distributor shall provide the Company with as many copies
of the current Fund Prospectus as the Company may reasonably request. If
requested by the Company in lieu thereof, the Fund at its expense shall
provide to the Company a camera-ready copy of the current Fund Prospectus
suitable for printing and other assistance as is reasonably necessary in
order for the Company to have a new Contracts Prospectus printed together
with the Fund Prospectus in one document. See Article V for a detailed
explanation of the responsibility for the cost of printing and distributing
Fund prospectuses.
3.2. The Fund Prospectus shall state that the Statement of
Additional Information for the Fund is available from the Distributor (or, in
the Fund's discretion, the Fund Prospectus shall state that such Statement is
available from the Fund), and the Distributor (or the Fund) shall provide
such Statement free of charge to the Company and to any outstanding or
prospective Contractowner who requests such Statement.
6
3.3.
(a) The Fund at its expense shall provide to the Company a
camera-ready copy of the Fund's shareholder reports and other
communications to shareholders (except proxy material), in each
case in a form suitable for printing. The Fund shall be responsible
for the costs of printing and distributing these materials to
Contractowners.
(b) The Fund at its expense shall be responsible for
preparing, printing and distributing its proxy material. The
Company will provide the appropriate Contractowner names and
addresses to the Fund for this purpose.
3.4. The Company shall furnish each piece of sales literature or other
promotional material in which the Fund or the Investment Manager is named to the
Fund or the Distributor prior to its use. No such material shall be used, except
with the prior written permission of the Fund or the Distributor. The Fund and
the Distributor agree to respond to any request for approval on a prompt and
timely basis. Failure of the Fund to respond within 10 days of the request by
the Company shall relieve the Company of the obligation to obtain the prior
written permission of the Fund or the Distributor.
3.5. The Company shall not give any information or make any
representations or statements on behalf of the Fund or concerning the Fund other
than the information or representations contained in the Fund Registration
Statement or Fund Prospectus, as such Registration Statement and Prospectus may
be amended or supplemented from time to time, or in reports or proxy statements
for the Fund, or in sales literature or other promotional material approved by
the Fund or by the Distributor, except with the prior written permission of the
Fund or the Distributor. The Fund agrees to respond to any request for
permission on a prompt and timely basis. If neither the Fund nor the Distributor
responds within 10 days of a request by the Company, then the Company shall be
relieved of the obligation to obtain the prior written permission of the Fund.
3.6. The Fund and the Distributor shall not give any information or
make any representations on behalf of the Company or concerning the Company, the
Account or the Contracts other than the information or representations contained
in the Contracts Registration Statement or Contracts Prospectus, as such
Registration Statement and Prospectus may be amended or supplemented from time
to time, or in published reports of the Account which are in the public domain
or approved in writing by the Company for distribution to Contractowners, or in
sales literature or other promotional material approved in writing by the
Company, except with the prior written permission of the Company. The Company
agrees to respond to any request for permission on a prompt and timely basis. If
the Company fails to respond within 10 days of a request by the Fund or the
Distributor, then the Fund and the Distributor are relieved of the obligation to
obtain the prior written permission of the Company.
7
3.7. The Fund will provide to the Company at least one complete
copy of all Fund Registration Statements, Fund Prospectuses, Statements of
Additional Information, annual and semi-annual reports and other reports,
proxy statements, sales literature and other promotional materials,
applications for exemptions, requests for no-action letters, and all
amendments or supplements to any of the above, that relate to the Fund or
Fund shares, promptly after the filing of such document with the SEC or other
regulatory authorities.
3.8. The Company will provide to the Fund at least one complete
copy of all Contracts Registration Statements, Contracts Prospectuses,
Statements of Additional Information, Annual and Semi-annual Reports, sales
literature and other promotional materials, and all amendments or supplements
to any of the above, that relate to the Contracts, promptly after the filing
of such document with the SEC or other regulatory authorities.
3.9. Each party will provide to the other party copies of draft
versions of any registration statements, prospectuses, statements of
additional information, reports, proxy statements, solicitations for voting
instructions, sales literature and other promotional materials, applications
for exemptions, requests for no-action letters, and all amendments or
supplements to any of the above, to the extent that the other party
reasonably needs such information for purposes of preparing a report or other
filing to be filed with or submitted to a regulatory agency. If a party
requests any such information before it has been filed, the other party will
provide the requested information if then available and in the version then
available at the time of such request.
3.10. For purposes of this Article III, 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, computer net site, signs or billboards, motion
pictures or other public media), sales literature (i.e., any written
communication distributed or made generally available to customers or the
public, in print or electronically, including brochures, circulars, research
reports, market letters, form letters, seminar texts, or reprints or excerpts
of any other advertisement, sales literature, or published article),
educational or training materials or other communications distributed or made
generally available to some or all agents or employees, registration
statements, prospectuses, Statements of Additional Information, shareholder
reports and proxy materials, and any other material constituting sales
literature or advertising under state insurance laws, NASD rules, the 1940
Act or the 1933 Act.
ARTICLE IV. VOTING
4.1 Subject to applicable law and the order referred to in Article
VII, the Fund shall: solicit voting instructions from Contractowners;
4.2 Subject to applicable law and the order referred to in Article
VII, the Company shall:
(a) vote Fund shares of each Series attributable to
Contractowners in accordance with instructions or proxies received
in timely fashion from such Contractowners;
8
(b) vote Fund shares of each Series attributable to
Contractowners for which no instructions have been received in the
same proportion as Fund shares of such Series for which
instructions have been received in timely fashion; and
(c) vote Fund shares of each Series held by the Company on its
own behalf or on behalf of the Account that are not attributable to
Contractowners in the same proportion as Fund shares of such Series
for which instructions have been received in timely fashion.
The Company shall be responsible for assuring that voting privileges for the
Accounts are calculated in a manner consistent with the provisions set forth
above.
ARTICLE V. FEES AND EXPENSES
All expenses incident to performance by the Fund under this
Agreement (including expenses expressly assumed by the Fund pursuant to this
Agreement) shall be paid by the Fund to the extent permitted by law. Except
as may otherwise be provided in Section 1.4 and Article VII of this
Agreement, the Company shall not bear any of the expenses for the cost of
registration and qualification of the Fund shares under Federal and any state
securities law, preparation and filing of the Fund Prospectus and Fund
Registration Statement, the preparation of all statements and notices
required by any Federal or state securities law, all taxes on the issuance or
transfer of Fund shares, and any expenses permitted to be paid or assumed by
the Fund pursuant to a plan, if any, under Rule 12b-1 under the 1940 Act.
The Fund is responsible for the cost of printing and distributing
Fund Prospectuses and SAIs to existing Contractowners. (If for this purpose
the Company prints the Fund Prospectuses and SAIs in a booklet containing
disclosure for the Contracts and for underlying funds other than those of the
Fund, then the Fund shall pay only its proportionate share of the total cost
to distribute the booklet to existing Contractowners.)
The Company is responsible for the cost of printing and
distributing Fund prospectuses and SAIs for new sales; and Account
Prospectuses and SAIs for existing Contractowners. The Company shall have the
final decision on choice of printer for all Prospectuses and SAIs.
ARTICLE VI. COMPLIANCE UNDERTAKINGS
6.1. The Fund undertakes to comply with Subchapter M and Section
817(h) of the Code, and all regulations issued thereunder.
6.2. The Company shall amend the Contracts Registration Statements
under the 1933 Act and the Account's Registration Statement under the 1940
Act 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
Company shall register and qualify the Contracts for sale to the extent
required by applicable securities laws of the various states.
9
6.3. The Fund shall amend the Fund Registration Statement under the
1933 Act and the 1940 Act from time to time as required in order to effect
for so long as Fund shares are sold the continuous offering of Fund shares as
described in the then currently effective Fund Prospectus. The Fund shall
register and qualify Fund shares for sale to the extent required by
applicable securities laws of the various states.
6.4. The Company shall be responsible for assuring that any
prospectus offering a Contract that is a life insurance contract where it is
reasonably possible that such Contract would be deemed a "modified endowment
contract," as that term is defined in Section 7702A of the Code, will
describe the circumstances under which a Contract could be treated as a
modified endowment contract (or policy).
6.5. To the extent that it decides to finance distribution expenses
pursuant to Rule 12b-1, the Fund undertakes to have a Fund Board of
Directors, a majority of whom are not interested persons of the Fund,
formulate and approve any plan under Rule 12b-1 to finance distribution
expenses.
6.6.
(a) The Company shall amend Schedule 3 when appropriate in
order to inform the Fund of any applicable state-mandated
investment restrictions with which the Fund must comply.
(b) Should the Fund or the Distributor become aware of any
restrictions which may be appropriate for inclusion in Schedule 3,
the Company shall be informed immediately of the substance of those
restrictions.
ARTICLE VLI. POTENTIAL CONFLICTS
7.1. The Company has reviewed a copy of the order (the "Mixed and
Shared Funding Order") dated November 2, 1987 of the Securities and Exchange
Commission under Section 6(c) of the Act and, in particular, has reviewed the
conditions to the relief set forth in the related Notice. As set forth
therein, the Company agrees to report to the Board of Directors of the Fund
(the "Board") any potential or existing conflicts between the interests of
Product Owners of all separate accounts investing in the Fund, and to assist
the Board in carrying out its responsibilities under the conditions of the
Mixed and Shared Funding Order by providing all information reasonably
necessary for the Board to consider any issues raised, including information
as to a decision to disregard voting instructions of variable Contractowners.
7.2. If a majority of the Board, or a majority of disinterested
Board Members, determines that a material irreconcilable conflict exists, the
Board shall give prompt notice to all Participating Insurance Companies.
10
(a) If a majority of the whole Board, after notice to the
Company and a reasonable opportunity for the Company to appear
before it and present its case, determines that the Company is
responsible for said conflict, and if the Company agrees with that
determination, the Company shall, at its sole cost and expense,
take whatever steps are necessary to remedy the irreconcilable
material conflict. These steps could include: (i) withdrawing the
assets allocable to some or all of the affected Accounts from the
Fund or any Series and reinvesting such assets in a different
investment vehicle, including another Series of the Fund, or
submitting the question of whether such segregation should be
implemented to a vote of all affected Contractowners and, as
appropriate, segregating the assets of any particular group (i.e.,
variable annuity Contractowners, variable life insurance
policyowners, or variable Contractowners of one or more
Participating Insurance Companies) that votes in favor of such
segregation, or offering to the affected Contractowners the option
of making such a change; and (ii) establishing a new registered
mutual fund or management separate account, or taking such other
action as is necessary to remedy or eliminate the irreconcilable
material conflict.
(b) If the Company disagrees with the Board's determination,
the Company shall file a written protest with the Board, reserving
its right to dispute the determination as between just the Company
and the Fund. After reserving that right the Company, although
disagreeing with the Board that it (the Company) was responsible
for the conflict, shall take the necessary steps, under protest, to
remedy the conflict, substantially in accordance with paragraph (a)
just above, for the protection of Contractowners.
(c) As between the Company and the Fund, if within 45 days
after the Board's determination the Company elects to press the
dispute, it shall so notify the Board in writing. The parties shall
then attempt to resolve the matter amicably through negotiation by
individuals from each party who are authorized to settle the
controversy.
If the matter has not been amicably resolved within 60 days from the date of
the Company's notice of its intent to press the dispute, then before either
party shall undertake to litigate the dispute it shall be submitted to
non-binding arbitration conducted expeditiously in accordance with the CPR
Rules for Non-Administered Arbitration of Business Disputes, by a sole
arbitrator; PROVIDED, HOWEVER, that if one party has requested the other
party to seek an amicable resolution and the other party has failed to
participate, the requesting party may initiate arbitration before expiration
of the 60-day period set out just above.
If within 45 days of the commencement of the process to select an arbitrator
the parties cannot agree upon the arbitrator, then he or she will be selected
from the CPR Panels of Neutrals. The arbitration shall be governed by the
United States Arbitration Act, 9 U.S.C. Sec. 1-16. The place of arbitration
shall be Syracuse, New York. The Arbitrator is not empowered to award damages
in excess of compensatory damages.
11
(d) If the Board shall determine that the Fund or another
insurer was responsible for the conflict, then the Board shall
notify the Company immediately of that determination. The Fund
shall assure the Company that it (the Fund) or that other insurer,
as applicable, shall, at its sole cost and expense, take whatever
steps are necessary to eliminate the conflict.
7.3. If a material irreconcilable conflict arises because of the
Company's decision to disregard Contractowner voting instructions and that
decision represents a minority position or would preclude a majority vote,
the Company shall withdraw (without charge or penalty) the Account's
investment in the Fund, if the Fund so elects.
7.4 Subject to the terms of Section 7.2 above, the Company shall
carry out the responsibility to take remedial action in the event of a Board
determination of an irreconcilable material conflict with a view only to the
interests of Contractowners.
7.5. For purposes of this Article, a majority of the disinterested
members of the Board shall determine whether or not any proposed action
adequately remedies any irreconcilable conflict, but in no event will the
Fund be required to establish a new funding medium for any variable contract,
nor will the Company be required to establish a new funding medium for any
Contract if an offer to do so has been declined by a vote of a majority of
affected Contractowners.
12
ARTICLE VIII. INDEMNIFICATION
8.1. INDEMNIFICATION BY THE COMPANY. The Company agrees to
indemnify and hold harmless the Fund, the Distributor and each person who
controls or is associated with the Fund (other than another Participating
Insurance Company) or the Distributor within the meaning of such terms under
the federal securities laws and any officer, trustee, director, employee or
agent of the foregoing, against any and all losses, claims, damages or
liabilities, joint or several (including any investigative, legal and other
expenses reasonably incurred in connection with, and any amounts paid in
settlement of, any action, suit or proceeding or any claim asserted), to
which they or any of them may become subject under any statute or regulation,
at common law or otherwise, insofar as such losses, claims, damages or
liabilities:
(a) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in the
Contracts Registration Statement, Contracts Prospectus, sales
literature or other promotional material for the Contracts or the
Contracts themselves (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 in light of the circumstances in which they were made;
provided that this obligation to indemnify shall not apply if such
statement or omission or such alleged statement or alleged omission
was made in reliance upon and in conformity with information
furnished in writing to the Company by the Fund or the Distributor
(or a person authorized in writing to do so on behalf of the Fund
or the Distributor) for use in the Contracts Registration
Statement, Contracts Prospectus 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 Fund shares; or
(b) arise out of or are based upon any untrue statement or
alleged untrue statement of a material fact by or on behalf of the
Company (other than statements or representations contained in the
Fund Registration Statement, Fund Prospectus or sales literature or
other promotional material of the Fund not supplied by the Company
or persons under its control) or wrongful conduct of the Company or
persons under its control with respect to the sale or distribution
of the Contracts or Fund shares; or
(c) arise out of any untrue statement or alleged untrue
statement of a material fact contained in the Fund Registration
Statement, Fund Prospectus or sales literature or other promotional
material of the Fund 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 in light of the circumstances
in which they were made, if such statement or omission was made in
reliance upon and in conformity with information furnished to the
Fund by or on behalf of the Company; or
(d) arise as a result of any failure by the Company to provide
the services and furnish the materials or to make any payments
under the terms of this Agreement; or
13
(e) arise out of any material breach by the Company of this
Agreement, including but not limited to any failure to transmit a
request for redemption or purchase of Fund shares on a timely basis
in accordance with the procedures set forth in Article 1; or
(f) arise as a result of the Company's providing the Fund with
inaccurate information, which causes the Fund to calculate its Net
Asset Values incorrectly.
This indemnification will be in addition to any liability which the Company
may otherwise have; provided, however, that no party shall be entitled to
indemnification if such loss, claim, damage or liability is due to the wilful
misfeasance, bad faith, gross negligence or reckless disregard of duty by the
party seeking indemnification.
8.2. INDEMNIFICATION BY THE DISTRIBUTOR. The Distributor agrees to
indemnify and hold harmless the Company and each person who controls or is
associated with the Company within the meaning of such terms under the
federal securities laws and any officer, director, employee or agent of the
foregoing, against any and all losses, claims, damages or liabilities, joint
or several (including any investigative, legal and other expenses reasonably
incurred in connection with, and any amounts paid in settlement of, any
action, suit or proceeding or any claim asserted), to which they or any of
them may become subject under any statute or regulation, at common law or
otherwise, insofar as such losses, claims, damages or liabilities:
(a) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in the Fund
Registration Statement, Fund Prospectus (or any amendment or
supplement thereto) or sales literature or other promotional
material of the Fund, 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 in light of the circumstances in which they
were made; provided that this obligation to indemnify shall not
apply if such statement or omission or alleged statement or alleged
omission was made in reliance upon and in conformity with
information furnished in writing by the Company to the Fund or the
Distributor for use in the Fund Registration Statement, Fund
Prospectus (or any amendment or supplement thereto) or sales
literature for the Fund or otherwise for use in connection with the
sale of the Contracts or Fund shares; or
(b) arise out of or are based upon any untrue statement or
alleged untrue statement of a material fact made by the Distributor
or the Fund (other than statements or representations contained in
the Fund Registration Statement, Fund Prospectus or sales
literature or other promotional material of the Fund not supplied
by the Distributor or the Fund or persons under their control) or
wrongful conduct of the Distributor or persons under its control
with respect to the sale or distribution of the Contracts or Fund
shares; or
14
(c) arise out of any untrue statement or alleged untrue
statement of a material fact contained in the Contract's
Registration Statement, Contracts Prospectus or sales literature or
other promotional material for the Contracts (or any amendment 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 in light of the
circumstances in which they were made, if such statement or
omission was made in reliance upon information furnished in writing
by the Distributor or the Fund to the Company (or a person
authorized in writing to do so on behalf of the Fund or the
Distributor); or
(d) arise as a result of any failure by the Fund to provide
the services and furnish the materials under the terms of this
Agreement (including, but not by way of limitation, a failure,
whether unintentional or in good faith or otherwise: (i) to comply
with the diversification requirements of Article VI of this
Agreement; and (ii) to provide the Company with accurate
information sufficient for it to calculate its accumulation and/or
annuity unit values in timely fashion as required by law and by the
Contracts Prospectuses); or
(e) arise out of any material breach by the Distributor or the
Fund of this Agreement.
This indemnification will be in addition to any liability which the
Distributor may otherwise have; provided, however, that no party shall be
entitled to indemnification if such loss, claim, damage or liability is due
to the wilful misfeasance, bad faith, gross negligence or reckless disregard
of duty by the party seeking indemnification.
15
8.3. INDEMNIFICATION PROCEDURES. After receipt by a party entitled
to indemnification ("indemnified party") under this Article VIII of notice of
the commencement of any action, if a claim in respect thereof is to be made
by the indemnified party against any person obligated to provide
indemnification under this Article VIII ("indemnifying party"), such
indemnified party will notify the indemnifying party in writing of the
commencement thereof as soon as practicable thereafter, provided that the
omission to so notify the indemnifying party will not relieve it from any
liability under this Article VIII, except to the extent that the omission
results in a failure of actual notice to the indemnifying party and such
indemnifying party is damaged solely as a result of the failure to give such
notice. The indemnifying party, upon the request of the indemnified party,
shall retain counsel reasonably satisfactory to the indemnified party to
represent the indemnified party and any others the indemnifying party may
designate in such proceeding and shall pay the fees and disbursements of such
counsel related to such proceeding. In any such proceeding, any indemnified
party shall have the right to retain its own counsel, but the fees and
expenses of such counsel shall be at the expense of such indemnified party
unless (i) the indemnifying party and the indemnified party shall have
mutually agreed to the retention of such counsel or (ii) 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 shall not be liable
for any settlement of any proceeding effected without its written consent but
if settled with such consent or if there be 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 shall be
entitled to the benefits of the indemnification contained in this Article
VIII. The indemnification provisions contained in this Article VIII shall
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 New York.
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, and the terms hereof shall be limited, interpreted and
construed in accordance therewith.
ARTICLE X. TERMINATION
10.1. This Agreement shall terminate:
(a) at the option of any party upon six months advance written
notice to the other parties; or
16
(b) at the option of the Company if shares of any Series are
not available to meet the requirements of the Contracts as
determined by the Company. Prompt notice of the election to
terminate for such cause shall be furnished by the Company.
Termination shall be effective ten days after the giving of notice
by the Company; or
(c) at the option of the Fund upon institution of formal
proceedings against the Company by the NASD, the SEC, the insurance
commission of any state or any other regulatory body regarding the
Company's duties under this Agreement or related to the sale of the
Contracts, the operation of the Account, the administration of the
Contracts or the purchase of Fund shares, or an expected or
anticipated ruling, judgment or outcome which would, in the Fund's
reasonable judgment, materially impair the Company's ability to
perform the Company's obligations and duties hereunder; or
(d) at the option of the Company upon institution of formal
proceedings against the Fund, the Distributor, the Investment
Manager or any Sub-Investment Manager, by the NASD, the SEC, or any
state securities or insurance commission or any other regulatory
body regarding the duties of the Fund or the Distributor under this
Agreement, or an expected or anticipated ruling, judgment or
outcome which would, in the Company's reasonable judgment,
materially impair the Fund's or the Distributor's ability to
perform Fund's or Distributor's obligations and duties hereunder; or
(e) at the option of the Company upon institution of formal
proceedings against the Investment Manager or Sub-investment
Manager by the NASD, the SEC, or any state securities or insurance
commission or any other regulatory body which would, in the good
faith opinion of the Company, result in material harm to the
Accounts, the Company, or Contractowners.
(f) upon requisite vote of the Contractowners having an
interest in the affected Series (unless otherwise required by
applicable law) and written approval of the Company, to substitute
the shares of another investment company for the corresponding
Series shares of the Fund in accordance with the terms of the
Contracts; or
(g) at the option of the Fund in the event any of the
Contracts are not registered, issued or sold in accordance with
applicable Federal and/or state law; or
(h) at the option of the Company or the Fund upon a
determination by a majority of the Fund Board, or a majority of
disinterested Fund Board members, that an irreconcilable material
conflict exists among the interests of (i) any Product owners or
(ii) the interests of the Participating Insurance Companies
investing in the Fund; or
(i) at the option of the Company if the Fund ceases to qualify
as a Regulated Investment Company under Subchapter M of the Code,
or under any successor or similar provision, or if the Company
reasonably believes, based on an opinion of its counsel, that the
Fund may fail to so qualify; or
17
(j) at the option of the Company if the Fund fails to meet the
diversification requirements specified in Section 817(h) of the
Code and any regulations thereunder; or
(k) at the option of the Fund if the Contracts cease to
qualify as annuity contracts or life insurance policies, as
applicable, under the Code, or if the Fund reasonably believes that
the Contracts may fail to so qualify; or
(l) at the option of either the Fund or the Distributor if the
Fund or the Distributor, respectively, shall determine, in their
sole judgment exercised in good faith, that either (1) the Company
shall have suffered a material adverse change in its business or
financial condition; or (2) the Company shall have been the subject
of material adverse publicity which is likely to have a material
adverse impact upon the business and operations of either the Fund
or the Distributor; or
(m) at the option of the Company, if the Company shall
determine, in its sole judgment exercised in good faith, that
either: (1) the Fund and the Distributor, or either of them, shall
have suffered a material adverse change in their respective
businesses or financial condition; or (2) the Fund or the
Distributor, or both of them, shall have been the subject of
material adverse publicity which is likely to have a material
adverse impact upon the business and operations of the Company; or
(n) upon the assignment of this Agreement (including, without
limitation, any transfer of the Contracts or the Accounts to
another insurance company pursuant to an assumption reinsurance
agreement) unless the non-assigning party consents thereto or
unless this Agreement is assigned to an affiliate of the
Distributor.
10.2. NOTICE REQUIREMENT. Except as otherwise provided in Section
10.1, no termination of this Agreement shall be effective unless and until
the party terminating this Agreement gives prior written notice to all other
parties to this Agreement of its intent to terminate, and that notice shall
set forth the basis for such termination. Furthermore:
(a) In the event that any termination is based upon the
provisions of Article VII or the provisions of Section 10.1(a) of
this Agreement, such prior written notice shall be given in advance
of the effective date of termination as required by such
provisions; and
(b) In the event that any termination is based upon the
provisions of Section 10.1(c) or 10.1(d) of this Agreement, such
prior written notice shall be given at least ninety (90) days
before the effective date of termination, or sooner if required by
law or regulation.
(c) In the event that any termination is based upon the
provisions of Section 10.1(e) of this Agreement, such prior written
notice shall be given at least sixty (60) days before the date of
any proposed vote to replace the Fund's shares.
18
10.3. EFFECT OF TERMINATION
(a) Notwithstanding any termination of this Agreement pursuant
to Section 10.1 of this Agreement, the Fund and the Distributor
will, at the option of the Company, continue to make available
additional Fund shares for so long after the termination of this
Agreement as the Company desires, pursuant to the terms and
conditions of this Agreement as provided in paragraph (b) below,
for all Contracts in effect on the effective date of termination of
this Agreement (hereinafter referred to as ("Existing Contracts").
Specifically, without limitation, if the Company so elects to make
additional Fund shares available, the owners of the Existing
Contracts or the Company, whichever shall have legal authority to
do so, shall be permitted to reallocate investments in the Fund,
redeem investments in the Fund and/or invest in the Fund upon the
making of additional purchase payments under the Existing Contracts.
(b) In the event of a termination of this Agreement pursuant
to Section 10.1 of this Agreement, the Fund and the Distributor
shall promptly notify the Company whether the Distributor and the
Fund will continue to make Fund shares available after such
termination. If Fund shares continue to be made available after
such termination, the provisions of this Agreement shall remain in
effect except for Section 10.1(a) and thereafter either the Fund or
the Company may terminate the Agreement, as so continued pursuant
to this Section 10.3, upon prior written notice to the other party,
such notice to be for a period that is reasonable under the
circumstances but, if given by the Fund, need not be for more than
six months.
(c) The parties agree that this Section 10.3 shall not apply
to any termination made pursuant to Article VII or any conditions
or undertakings incorporated by reference in Article VII, and the
effect of such Article VII termination shall be governed by the
provisions set forth or incorporated by reference therein.
ARTICLE XI. APPLICABILITY TO NEW ACCOUNTS AND NEW CONTACTS
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 and to add new classes of variable annuity contracts and variable
life insurance policies to be issued by the Company through a Separate
Account investing in the Fund. The provisions of this Agreement shall be
equally applicable to each such class of contracts or policies, unless the
context otherwise requires. The schedule of available series in the Fund may
also be amended from time to time.
19
ARTICLE XII. NOTICES
Any notice shall be sufficiently given when sent by registered or
certified mail to the other party(ies) at the address of such party(ies) set
forth below or at such other address as such party(ies) may from time to time
specify in writing to the other party.
If to the Fund:
Delaware Group Premium Fund, Inc.
0000 Xxxxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
Attn: Xxxxxxxxxxx Xxxxx
If to the Company:
Lincoln Life & Annuity Company of New York
000 Xxxxxxx Xxxxxx, Xxxxx 0000
Xxxxxxxx, Xxx Xxxx 00000-0000
Attn: Xxxx Xxxxxxx
If to the Distributor:
Delaware Distributors, Inc.
0000 Xxxxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
Attn: Xxxxx X. Xxxxxx
ARTICLE XIII. MISCELLANEOUS
13.1. 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.
13.2. This Agreement may be executed simultaneously in two or more
counterparts, each of which together shall constitute one and the same
instrument.
13.3. 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.
13.4. 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.
20
13.5. 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 trust 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.
IN WITNESS WHEREOF, each of the parties hereto has caused this
Agreement to be executed in its name and behalf by its duly authorized
officer on the date specified below.
DELAWARE GROUP PREMIUM FUND, INC. (Fund)
Date: By: /s/ Xxxxx X. Xxxxxx
---------------- -----------------------------------------
Name: Xxxxx X. Xxxxxx
Title: President and Chief Executive Officer
LINCOLN LIFE & ANNUITY COMPANY OF NEW YORK
(Company)
Date: 11-5-99 By: /s/ Xxxxxx X. Xxxxxxx
---------------- -----------------------------------------
Name: Xxxxxx X. Xxxxxxx
Title: President
DELAWARE DISTRIBUTORS, LP (Distributor)
by DELAWARE DISTRIBUTORS, INC. (General Parties)
Date: By: /s/ Xxxxx X. Xxxxxx
---------------- -----------------------------------------
Name: Xxxxx X. Xxxxxx
Title: President
21
SCHEDULE 1
Separate Accounts of Lincoln Life & Annuity Company of New York
Investing in the Fund
As of October 11, 1999
Separate Account Date Created
---------------- ------------
Lincoln Life & Annuity Separate Account M November 24, 1997
Lincoln Life & Annuity Separate Account N March 11, 1999
Lincoln Life & Annuity Separate Account R January 29, 1998
Lincoln Life & Annuity Separate Account S March 2, 1999
22
SCHEDULE 2
Variable Annuity Contracts
and Variable Life Insurance Policies
Supported by Separate Accounts
Listed on Schedule 1
As of October 15, 1999
LLANY FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE - VUL
CHOICE PLUS VARIABLE ANNUITY
LLANY FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE - SVUL
CVUL
23
SCHEDULE 3
State-mandated Investment Restrictions
Applicable to the Fund
As of October 11, 1999
None.
24
SCHEDULE 4
Series in the Fund Available
to the Contracts and Policies
Listed on Schedule 2
As of October 15, 1999
Trend Series
Emerging Markets Series
Small Cap Value Series
Delchester Series
REIT Series
Devon Series
25
SCHEDULE 1
Separate Accounts of Lincoln Life & Annuity Company of New York
Investing in the Fund
As of May 1, 2000
Separate Account Date Created
---------------- ------------
Lincoln Life & Annuity Variable Annuity Separate Account L July 24, 1996
Lincoln Life & Annuity Flexible Premium Variable Life Account M November 24, 1997
Lincoln New York Separate Account N for Variable Annuities March 11, 1999
LLANY Separate Account R for Flexible Premium Variable Life Insurance January 29, 1998
LLANY Separate Account S for Flexible Premium Variable Life Insurance March 2, 1999
SCHEDULE 2
Variable Annuity Contracts
and Variable Life Insurance Policies
Supported by Separate Accounts
Listed on Schedule 1
As of May 1, 2000
LINCOLN VUL
DELWARE-LINCOLN CHOICE PLUS VARIABLE ANNUITY
LINCOLN SVUL
LINCOLN CVUL
GROUP VARIABLE ANNUITY (GVA) I, II, III
AMENDMENT TO
SCHEDULE 4
Series in the Fund Available
to the Contracts and Policies
Listed on Schedule 2
As of May 1, 2000
Trend Series
Emerging Markets Series
Small Cap Value Series
High Yield Series
REIT Series
Devon Series
Growth & Income
Select Growth
Social Awareness
International Equity
IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment
to Schedules 1, 2 and 4 to be executed in its name and behalf by its duly
authorized officer on the date specified below.
DELAWARE GROUP PREMIUM FUND (Fund)
Date: 5/1/2000 By: /s/ Xxxxx X. Xxxxxx
---------------- ---------------------------------------------
Xxxxx X. Xxxxxx
President and Chief Executive Officer
LINCOLN LIFE & ANNUITY COMPANY OF NEW YORK
(Company)
Date: 3/29/00 By: /s/ Xxxx X. Xxxxxxx
---------------- ---------------------------------------------
Xxxx X. Xxxxxxx
CFO/2nd Vice President
DELAWARE DISTRIBUTORS, LP (Distributor)
by DELAWARE DISTRIBUTORS, INC. (General Parties)
Date: 5/1/2000 By: /s/ Xxxxx X. Xxxxxx
---------------- ---------------------------------------------
Xxxxx X. Xxxxxx
President
3959
SCHEDULE 2
Variable Annuity Contracts and Variable Life Insurance Policies
Supported by Separate Accounts Listed on Schedule 1
As of July 15, 2000
LINCOLN VUL
LINCOLN CHOICEPLUS VARIABLE ANNUITY
LINCOLN CHOICEPLUS ACCESS VARIABLE ANNUITY
LINCOLN SVUL
LINCOLN CVUL
GROUP VARIABLE ANNUITY (GVA) I, II, III
IN WITNESS WHEREOF, each of the parties hereto has caused this
Amendment to Schedule 2 to be executed in its name and behalf by its duly
authorized officer on the date specified below.
DELAWARE GROUP PREMIUM FUND (Fund)
Date: 7-15-00 By: /s/Xxxxx X. Xxxxxx
---------------- -------------------------------------
Xxxxx X. Xxxxxx
President and Chief Executive Officer
LINCOLN LIFE & ANNUITY COMPANY OF NEW YORK
(Company)
Date: 7-15-00 By: /s/Xxxx X. Xxxxxxx
---------------- -------------------------------------
Xxxx X. Xxxxxxx
CFO/2nd Vice President
DELAWARE DISTRIBUTORS, LP (Distributor)
by DELAWARE DISTRIBUTORS, INC. (General Parties)
Date: 7-15-00 By: /s/Xxxxx X. Xxxxxx
---------------- -------------------------------------
Xxxxx X. Xxxxxx
President
AMENDMENT TO
SCHEDULE 2
Variable Annuity Contracts and Variable Life Insurance Policies
Supported by Separate Accounts Listed on Schedule 1
As of May 1, 2001
VUL I
LINCOLN VUL(DB)
LINCOLN VUL(CV)
LINCOLN VUL(CV2)
LINCOLN CHOICEPLUS VARIABLE ANNUITY
LINCOLN CHOICEPLUS ACCESS VARIABLE ANNUITY
LINCOLN CHOICEPLUS II
LINCOLN CHOICEPLUS II ACCESS
LINCOLN CHOICEPLUS ADVANCE
LINCOLN SVUL
LINCOLN SVUL II
LINCOLN CVUL III
GROUP VARIABLE ANNUITY (GVA) I, II, III
LINCOLN MONEY GUARD
AMENDMENT TO
SCHEDULE 4
Series in the Fund Available to the Contracts and Policies
Listed on Schedule 2
As of May 1, 2001
Trend Series
Emerging Markets Series
Small Cap Value Series
High Yield Series
REIT Series
Devon Series
Growth & Income
Select Growth
Social Awareness
International Equity
U.S. Growth Series
IN WITNESS WHEREOF, each of the parties hereto has caused this
Amendment to Schedules 2 and 4 to be executed in its name and behalf by its duly
authorized officer on the date specified below.
DELAWARE GROUP PREMIUM FUND (Fund)
Date: 8/10/01 By: /s/ Xxxxx X. Dolones
------------------- ---------------------------
Name:
Title: President/CEO/CFO
LINCOLN LIFE & ANNUITY COMPANY OF NEW YORK
(Company)
Date: 8/10/01 By: /s/ Xxxxxx X. Xxxxxxx
------------------- ---------------------------
Xxxxxx X. Xxxxxxx
Second Vice President
DELAWARE DISTRIBUTORS, LP (Distributor)
by DELAWARE DISTRIBUTORS, INC. (General Parties)
Date: 8/10/01 By: /s/ Xxxxxxx X. Xxxxxxxx
------------------- ---------------------------
Name: Xxxxxxx X. Xxxxxxxx
Title: President/CEO
FORM OF
AMENDMENT TO
PARTICIPATION AGREEMENT
This Amendment to the
Participation Agreement ("Agreement") dated the 15th
day of October, 1999, as amended, between Delaware Group Premium Fund, Inc. a
corporation organized under the laws of Maryland (the "Fund"), Lincoln Life &
Annuity Company of New York, a New York insurance company (the "Company") and
Delaware Distributors, LP, a Delaware limited partnership (the "Distributor") is
effective as of May 1, 2003.
AMENDMENT
For good and valuable consideration, the receipt of which is hereby
acknowledged, the parties agree to amend the Agreement as follows:
1. Article I Sale of Fund Shares is amended by adding the following:
SECTION 1.7.a.
Any material errors in the calculation of the net asset value,
dividends or capital gain information shall be reported
immediately upon discovery to the Company.
In the event of any material error in the calculation or
communication of net asset value, dividends or capital gain
information or any delay in the communication, the responsible
party or parties shall reimburse the Company for any losses or
reasonable costs incurred as a result of the error or delay,
including but not limited to, amounts needed to make
contractowners whole and reasonable administrative costs
necessary to correct the error.
2. Article XII NOTICES. If to the Company is replaced with
Lincoln Life & Annuity Company of New York
0000 X. Xxxxxxx Xxxxxx
Xxxx Xxxxx, XX 00000
Attn: Rise X. X. Xxxxxx
Second Vice President
3. Schedule 2 of this Agreement shall be deleted and replaced with the
attached Schedule 2.
4. Schedule 4 of this Agreement shall be deleted and replaced with the
attached Schedule 4.
5. All other terms of the Agreement shall remain in full force and
effect.
IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to
be executed in its name and behalf by its duly authorized officer on the date
specified below.
DELAWARE VIP TRUST (Fund)
Date: By:
---------------------- --------------------------------------
Name:
Title:
LINCOLN LIFE & ANNUITY COMPANY OF NEW YORK
(Company)
Date: By:
---------------------- ---------------------------------------
Rise X.X. Xxxxxx
Second Vice President
DELAWARE DISTRIBUTORS, LP (Distributor) by
DELAWARE DISTRIBUTORS, INC. (General Parties)
Date: By:
---------------------- ---------------------------------------
Name:
Title:
AMENDMENT TO
SCHEDULE 2
Variable Annuity Contracts and Variable Life Insurance Policies
Supported by Separate Accounts Listed on Schedule 1
As of May 1, 2003
VUL I
Lincoln VUL(DB)
Lincoln VUL(DB)-II
Lincoln VUL(CV)
Lincoln VUL(CV)-II
Lincoln VUL(CV)-III
Lincoln ChoicePlus Variable Annuity
Lincoln ChoicePlus Access Variable Annuity
Lincoln ChoicePlus II
Lincoln ChoicePlus II Access
Lincoln ChoicePlus II Bonus
Lincoln ChoicePlus II Advance
Lincoln ChoicePlus Assurance (B Share)
Lincoln ChoicePlus Assurance (C Share)
Lincoln ChoicePlus Assurance (L Share)
Lincoln ChoicePlus Assurance (Bonus)
Lincoln SVUL
Lincoln SVUL II
Lincoln SVUL III
Lincoln CVUL Series III
Lincoln Corporate Variable 4
Group Variable Annuity (GVA) I, II, III
AMENDMENT TO
SCHEDULE 4
Series in the Fund Available to the Contracts and Policies
Listed on Schedule 2
As of May 1, 2003
Trend Series
Emerging Markets Series
Small Cap Value Series
High Yield Series
REIT Series
Large Cap Value
Select Growth
Social Awareness
International Equity
U.S. Growth Series
Diversified Income
AMENDMENT TO
PARTICIPATION AGREEMENT
This Amendment to the
Participation Agreement ("Agreement") dated the 15th
day of October, 1999, as amended, between Delaware Group Premium Fund, Inc. a
corporation organized under the laws of Maryland (the "Fund"), Lincoln Life
& Annuity Company of New York, a New York insurance company (the "Company")
and Delaware Distributors, LP, a Delaware limited partnership (the
"Distributor") is effective as of May 1, 2006.
AMENDMENT
For good and valuable consideration, the receipt of which is hereby
acknowledged, the parties agree to amend the Agreement as follows:
1. Schedule 2 of this Agreement shall be deleted and replaced with the
attached Schedule 2.
2. Schedule 4 of this Agreement shall be deleted and replaced with the
attached Schedule 4.
3. All other terms of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment
to be executed in its name and behalf by its duly authorized officer on the
date specified below.
DELAWARE VIP TRUST (Fund)
Date: 11/6/07 By: /s/ See Xxxx Xxxx
------------------ ----------------------------
Name: See Xxxx Xxxx
Title: Executive Vice President
LINCOLN LIFE & ANNUITY COMPANY OF NEW YORK
(Company)
Date: 12/21/07 By: /s/ Xxxxx X. Xxxxxxxxx
------------------ ----------------------------
Xxxxx X. Xxxxxxxxx
Second Vice President
DELAWARE DISTRIBUTORS, LP (Distributor) by
DELAWARE DISTRIBUTORS, INC. (General Parties)
Date: 11/8/07 By: /s/ Xxxxxxxx X. Xxxxx
------------------ ----------------------------
Name: Xxxxxxxx X. Xxxxx
Title: President
AMENDMENT TO
SCHEDULE 2
Variable Annuity Contracts and Variable Life Insurance Policies
Supported by Separate Accounts Listed on Schedule 1
As of May 1, 2006
Lincoln VUL I
Lincoln VUL(DB)
Lincoln VUL(DB) II
Lincoln VUL(DB) IV
Lincoln VUL(CV)
Lincoln VUL(CV) II
Lincoln VULFlex
Lincoln VUL(CV) III
Lincoln VUL(CV) IV
Lincoln VUL(ONE)
Lincoln VUL(ONE) 2005
Lincoln Momentum VUL(ONE)
Lincoln Momentum VUL(ONE) 2005
Lincoln Momentum SVUL(ONE)
Lincoln ChoicePlus Variable Annuity
Lincoln ChoicePlus Access Variable Annuity
Lincoln ChoicePlus II
Lincoln ChoicePlus II Access
Lincoln ChoicePlus II Bonus
Lincoln ChoicePlus II Advance
Lincoln ChoicePlus Assurance (B Share)
Lincoln ChoicePlus Assurance (C Share)
Lincoln ChoicePlus Assurance (L Share)
Lincoln ChoicePlus Assurance (Bonus)
Lincoln ChoicePlus Momentum Income Option
Lincoln SVUL
Lincoln SVUL II
Lincoln SVUL III
Lincoln SVUL IV
Lincoln SVUL(ONE)
Lincoln CVUL Series III
Lincoln Corporate Variable 4
Lincoln Corporate Variable 5
Group Variable Annuity (GVA) I, II, III
New York Director
AMENDMENT TO
SCHEDULE 4
Series in the Fund Available to the Contracts and Policies
Listed on Schedule 2
As of May 1, 2006
Trend Series
Emerging Markets Series
Small Cap Value Series
High Yield Series
REIT Series
Large Cap Value
Select Growth
Social Awareness
International Equity
U.S. Growth Series
Diversified Income
Capital Reserves Series
Value Series
AMENDMENT TO
PARTICIPATION AGREEMENT
This Amendment to the
Participation Agreement ("Agreement") dated the 15th
day of October, 1999, as amended, between Delaware VIP Trust (formerly
Delaware Group Premium Fund, Inc.), a statutory trust organized under the
laws of Delaware (the "Fund"), Lincoln Life & Annuity Company of New York, a
New York insurance company (the "Company") and Delaware Distributors, LP, a
Delaware limited partnership (the "Distributor") is effective as of October
1, 2006.
AMENDMENT
For good and valuable consideration, the receipt of which is hereby
acknowledged, the parties agree to amend the Agreement as follows:
1. Schedule 1 of this Agreement shall be deleted and replaced with the
attached Schedule 1.
2. Schedule 2 of this Agreement shall be deleted and replaced with the
attached Schedule 2.
3. All other terms of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment
to be executed in its name and behalf by its duly authorized officer on the
date specified below.
DELAWARE VIP TRUST (Fund)
Date: 11/2/07 By: /s/ See Xxxx Xxxx
-------------- -------------------------
Name: See Xxxx Xxxx
Title: Executive Vice President
LINCOLN LIFE & ANNUITY COMPANY OF NEW YORK
(Company)
Date: 12/21/07 By: /s/ Xxxxx X. Xxxxxxxxx
-------------- -------------------------
Xxxxx X. Xxxxxxxxx
Second Vice President
DELAWARE DISTRIBUTORS, LP (Distributor) by
DELAWARE DISTRIBUTORS, INC., General Partner
Date: By: /s/ Xxxxxxxx X. Xxxxx
-------------- -------------------------
Name: Xxxxxxxx X. Xxxxx
Title: President
Schedule 1
Separate Accounts of Lincoln Life & Annuity Company of New York
Investing in the Fund
As of October 1, 2006
SEPARATE ACCOUNT DATE CREATED
---------------- ------------
Lincoln Life & Annuity Variable Annuity Separate Account L July 24, 1996
Lincoln Life & Annuity Flexible Premium Variable Life Account M November 24, 1997
Lincoln New York Separate Account N for Variable Annuities March 11, 1999
LLANY Separate Account R for Flexible Premium Variable Life Insurance January 29, 1998
LLANY Separate Account S for Flexible Premium Variable Life Insurance March 2, 1999
LNY Separate Account 401 for Group Annuities April 20, 2004
Lincoln Life & Annuity Flexible Premium Variable Life Account Z June 21, 2006
AMENDMENT TO
SCHEDULE 2
Variable Annuity Contracts and Variable Life Insurance Policies
Supported by Separate Accounts Listed on Schedule 1
As of October 1, 2006
Lincoln VUL I
Lincoln VUL(DB)
Lincoln VUL(DB) II
Lincoln VUL(DB) IV
Lincoln VUL(CV)
Lincoln VUL(CV) II
Lincoln VULFlex
Lincoln VUL(CV) III
Lincoln VUL(CV) IV
Lincoln VUL(ONE)
Lincoln VUL(ONE) 2005
Lincoln Momentum VUL(ONE)
Lincoln Momentum VUL(ONE) 2005
Lincoln Momentum SVUL(ONE)
Lincoln ChoicePlus Variable Annuity
Lincoln ChoicePlus Access Variable Annuity
Lincoln ChoicePlus II
Lincoln ChoicePlus II Access
Lincoln ChoicePlus II Bonus
Lincoln ChoicePlus II Advance
Lincoln ChoicePlus Assurance (A Share)
Lincoln ChoicePlus Assurance (B Share)
Lincoln ChoicePlus Assurance (C Share)
Lincoln ChoicePlus Assurance (L Share)
Lincoln ChoicePlus Assurance (Bonus)
Lincoln ChoicePlus Momentum Income Option
Lincoln ChoicePlus Design
Lincoln SVUL
Lincoln SVUL II
Lincoln SVUL III
Lincoln SVUL IV
Lincoln SVUL(ONE)
Lincoln CVUL Series III
Lincoln Corporate Variable 4
Lincoln Corporate Variable 5
Group Variable Annuity (GVA) I, II, III
New York Director
Lincoln Corporate Private Solution
AMENDMENT TO PARTICIPATION AGREEMENT
This Amendment to the Participation Agreement ("Agreement") dated the 15th
day of October, 1999, as amended, between Delaware VIP Trust (formerly
Delaware Group Premium Fund, Inc.), a statutory trust organized under the
laws of Delaware (the "Fund"), Lincoln Life & Annuity Company of New York, a
New York insurance company (the "Company") and Delaware Distributors, LP, a
Delaware limited partnership (the "Distributor") is effective as of April 2,
2007, regardless of when executed.
AMENDMENT
WHEREAS, a merger of Lincoln Life & Annuity Company of New York and
Jefferson Pilot LifeAmerica Insurance Company ("JPLA") is expected to occur
on or about April 2, 2007;
WHEREAS, effective on or about Xxxxx 0, 0000, XXXX will change its state
of domicile from New Jersey to New York and will change its name to Lincoln
Life & Annuity Company of New York;
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties agree to amend the
Agreement as follows:
ASSIGNMENT. The parties consent to an assignment of the responsibilities
of the former Lincoln Life & Annuity Company of New York under this Agreement
to the new Lincoln Life & Annuity Company of New York.
IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment
to be executed in its name and behalf by its duly authorized officer on the
date specified below.
DELAWARE VIP TRUST (Fund)
Date: 11/2/07 By: /s/ See Xxxx Xxxx
--------------- ----------------------
Name: See Xxxx Xxxx
Title: Executive Vice President
LINCOLN LIFE & ANNUITY COMPANY OF NEW YORK
(Company)
Date: 12/21/07 By: /s/ Xxxxx X. Xxxxxxxxx
--------------- ----------------------
Xxxxx X. Xxxxxxxxx
Second Vice President
DELAWARE DISTRIBUTORS, LP (Distributor) by
DELAWARE DISTRIBUTORS, INC., General Partner
Date: By: /s/ Xxxxxxxx X. Xxxxx
--------------- ----------------------
Name: Xxxxxxxx X. Xxxxx
Title: President
AMENDMENT TO FUND PARTICIPATION AGREEMENT
BETWEEN
DELAWARE VIP TRUST
DELAWARE MANAGEMENT COMPANY
DELAWARE DISTRIBUTORS, L.P.
AND
LINCOLN LIFE & ANNUITY COMPANY OF NEW YORK
This Amendment is made this 1st day of March, 2009 by and between
Delaware VIP Trust (the "Trust"), Delaware Management Company, a series of
Delaware Management Business Trust (the "Adviser"), Delaware Distributors,
L.P. (the "Distributor") and Lincoln Life & Annuity Company of New York (the
"Company").
WITNESSETH:
WHEREAS, the Trust, the Adviser, the Distributor and the Company entered
into a Fund Participation Agreement dated October 15, 1999 (the "Agreement");
and
WHEREAS, the parties to the Agreement have determined to amend said
Agreement to insert a new section to the Agreement relating to processing
orders via the National Securities Clearing Corporation ("NSCC"); and;
WHEREAS, the parties have agreed to amend the Agreement to revise the
list of separate accounts for which Funds are made available under the
Agreement, as set forth in the attached Schedule 1;
WHEREAS, the parties have agreed to amend the Agreement to revise the
list of variable annuity products and variable life policies investing in the
funds on Schedule 2;
WHEREAS, the parties desire to memorialize the amendment to the
Agreement.
NOW, THEREFORE, in consideration of the mutual covenants hereinafter set
forth, and intending to be legally bound, the Agreement shall be amended as
follows:
1. A new Paragraph 1.10 shall be added to Article I as follows:
"1.10 The Trust, the Adviser, the Distributor and the Company intend
that communications, processing and settlement of purchase and redemption
transactions for Shares (collectively, "Share transactions") shall occur
via the Fund/SERV and Networking systems of the National Securities
Clearing Corporation (hereinafter, "NSCC"). Distributor represents and
warrants that it or one of its affiliates: (a) has entered into an
agreement or agreements with NSCC to process transactions via Fund/SERV and
Networking, (b) has met and will continue to meet all of the requirements
to participate in Fund/SERV and Networking, and (c) intends to remain at
all times in compliance with the then-current rules and procedures of NSCC,
all to the extent necessary or appropriate to facilitate such
communications, processing, and settlement of Share transactions. The
Company represents that one or more of its affiliates or its designee (a)
has entered into an agreement or agreements with NSCC to process
transactions via Fund/SERV and Networking and (b) has met and will continue
to meet all of the requirements to participate in Fund/SERV and Networking,
and (c) intends to remain at all times in compliance with the then-current
rules and procedures of NSCC, all to the extent necessary or appropriate to
facilitate such communications, processing, and settlement of Share
transactions. Distributor or Trust agrees to provide the Company or such
other
entity as the Company directs with account positions and activity data
relating to Share transactions via Networking. The Company shall pay for
Shares in the manner and within the time as required by the Fund/SERV and
Networking rules.
For purposes of this Agreement, "Fund/SERV" shall mean NSCC's system for
automated, centralized processing of mutual fund purchase and redemption
orders, settlement, and account registration. "Networking" shall mean
NSCC's (Level Zero) system that allows mutual funds and life insurance
companies to exchange account level information electronically. In all
cases, processing and settlement of Share transactions shall be done in a
manner consistent with applicable law.
In the event that any party is prohibited or unable to communicate,
process or settle Share transactions via Fund/SERV or Networking, such
party shall provide prompt notice to the other parties. After all parties
have been notified, the original provisions contained in the Agreement
regarding process or settlement of Share transactions shall apply.
2. Schedules 1 and 2 of the Agreement are amended and replaced with the
attached Schedules 1 and 2.
3. Except as provided herein, the terms and conditions contained in the
Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Amendment as of the date set forth above.
LINCOLN LIFE & ANNUITY DELAWARE VIP TRUST
COMPANY OF NEW YORK
By: /s/ Xxxxxx X. Xxxxx By: /s/ Xxxxxxx X. Xxxxx
------------------- --------------------
Name: Xxxxxx X. Xxxxx Name: Xxxxxxx X. Xxxxx
Title: Vice President Title: President
DELAWARE DISTRIBUTORS, L.P. DELAWARE MANAGEMENT COMPANY,
A SERIES OF DELAWARE MANAGEMENT
BUSINESS TRUST
By: /s/ Xxxxxxxx X. Xxxxx By: /s/ J. Xxxxx Xxxxxxx
--------------------- --------------------
Name: Xxxxxxxx X. Xxxxx Name: J. Xxxxx Xxxxxxx
Title: President Title: Executive Vice President
Schedule 1
Separate Accounts of Lincoln Life & Annuity Company of New York
Investing in the Fund
As of March, 2009
SEPARATE ACCOUNT DATE CREATED
---------------- ------------
Lincoln Life & Annuity Variable Annuity Separate Account L July 24, 1996
Lincoln Life & Annuity Flexible Premium Variable Life Account M November 24, 1997
Lincoln New York Separate Account N for Variable Annuities March 11, 1999
LLANY Separate Account R for Flexible Premium Variable Life Insurance January 29, 1998
LLANY Separate Account S for Flexible Premium Variable Life Insurance March 2, 1999
LNY Separate Account 401 for Group Annuities April 20, 2004
Lincoln Life & Annuity Flexible Premium Variable Life Account Z June 21, 2006
Lincoln Life & Annuity Flexible Premium Variable Life Account JA-B
AMENDMENT TO
SCHEDULE 2
Variable Annuity Contracts and Variable Life Insurance Policies
Supported by Separate Accounts Listed on Schedule 1
As of March 1, 2009
VARIABLE ANNUITY CONTRACTS
Lincoln ChoicePlus
Lincoln ChoicePlus Access
Lincoln ChoicePlus II
Lincoln ChoicePlus II Access
Lincoln ChoicePlus II Bonus
Lincoln ChoicePlus II Advance
Lincoln ChoicePlus Assurance (A Share/Class)
Lincoln ChoicePlus Assurance (B Share)
Lincoln ChoicePlus Assurance (B Class)
Lincoln ChoicePlus Assurance (C Share)
Lincoln ChoicePlus Assurance (L Share)
Lincoln ChoicePlus Assurance (Bonus)
Lincoln ChoicePlus Assurance (A Share/Class) i4LIFE(R) Advantage (New York)
Lincoln ChoicePlus Assurance (B Share/Class) i4LIFE(R) Advantage (New York)
Lincoln ChoicePlus Assurance (Design) i4LIFE(R) Advantage (New York)
Lincoln ChoicePlus Momentum Income Option
Lincoln ChoicePlus Design
Group Variable Annuity (GVA) I, II, III
New York Director
Lincoln American Legacy Retirement
VARIABLE LIFE INSURANCE POLICIES
Lincoln VUL I
Lincoln VUL(DB)
Lincoln VUL(DB) II
Lincoln VUL(DB) IV
Lincoln VUL(DB)
Lincoln VUL(CV) II
Lincoln VULFlex
Lincoln VUL(CV) III
Lincoln VUL(CV) IV
Lincoln VUL(ONE)
Lincoln VUL(ONE) 2005
Lincoln VUL(ONE) 2007
Lincoln Momentum VULONE
Lincoln Momentum VULONE 2005
Lincoln Momentum SVULONE
Lincoln SVUL
Lincoln SVUL II
Lincoln SVUL III
Lincoln SVUL IV
Lincoln SVUL(ONE)
Lincoln SVUL(ONE) 2007
Lincoln CVUL Series III
Lincoln Corporate Variable 4
Lincoln Corporate Variable 5
Lincoln Corporate Private Solution
Lincoln AssetEdge VUL
Lincoln Corporate Commitment VUL
Lincoln Ensemble II VUL
