Exhibit 99.B(d)(20)
FORM OF
SUB-ADVISORY AGREEMENT
AGREEMENT made this 7th day of December 2005, between ING Life Insurance
and Annuity Company (the "Adviser"), an insurance corporation organized and
existing under the laws of the State of Connecticut, and Pioneer Investment
Management, Inc. (the "Sub-Adviser"), a corporation organized under the laws of
the State of Delaware (the "Agreement"). The Sub-Adviser is a member of the
UniCredito Italiano banking group, register of banking groups.
WHEREAS, ING Partners, Inc. (the "Company") is registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company;
WHEREAS, the Company is authorized to issue separate series, each of which
will offer a separate class of shares of beneficial interest, each series having
its own investment objective or objectives, policies, and limitations;
WHEREAS, the Company currently offers shares in multiple series, may offer
shares of additional series in the future, and intends to offer shares of
additional series in the future;
WHEREAS, pursuant to an Investment Advisory Agreement, effective as of May
1, 2003, as amended, a copy of which has been provided to the Sub-Adviser, the
Company has retained the Adviser to render advisory, management, and
administrative services with respect to the Company's series;
WHEREAS, the Company wishes to retain the Sub-Adviser to furnish investment
advisory services to one or more of the series of the Company and the
Sub-Adviser is willing to furnish such services to the Company and the Adviser.
NOW THEREFORE, in consideration of the premises and the promises and mutual
covenants herein contained, it is agreed between the Adviser and the Sub-Adviser
as follows:
1. APPOINTMENT. The Adviser hereby appoints the Sub-Adviser to act as the
sub-adviser to the series of the Company designated on SCHEDULE A of this
Agreement (each a "Series") for the periods and on the terms set forth in this
Agreement. The Sub-Adviser accepts such appointment and agrees to furnish the
services herein set forth for the compensation herein provided.
In the event the Company designates one or more series other than the
Series with respect to which the Adviser wishes to retain the Sub-Adviser to
render investment advisory services hereunder, it shall promptly notify the
Sub-Adviser in writing. If the Sub-Adviser is willing to render such services,
it shall so notify the Adviser in writing, whereupon such series shall become a
Series hereunder, and be subject to this Agreement.
2. PORTFOLIO MANAGEMENT DUTIES AND AUTHORITY.
Subject to the supervision of the Company's Board of Directors (the
"Board") and the Adviser, the Sub-Adviser will provide a continuous investment
program for each Series' portfolio and determine the composition of the assets
of each Series' portfolio, including determination of the purchase, retention,
or sale of the securities, cash, and other investments contained in the
portfolio. The Sub-Adviser will provide investment research and conduct a
continuous program of evaluation, investment, sales, and reinvestment of each
Series' assets by determining the securities and other investments that shall be
purchased, entered into, sold, closed, or exchanged for the Series, when these
transactions should be executed, and what portion of the assets of each Series
should be held in the various securities and other investments in which it may
invest, and the Sub-Adviser is hereby authorized to execute and perform such
services on behalf of each Series. To the extent permitted by the investment
policies of the Series, the Sub-Adviser shall make decisions for the Series as
to foreign currency matters. The Sub-Adviser will provide the services under
this Agreement in accordance with the Series' investment objective or
objectives, policies, and restrictions as stated in the Company's Registration
Statement filed with the Securities and Exchange Commission (the "SEC"), as from
time to time amended (the "Registration Statement"), copies of which shall be
sent to the Sub-Adviser by the Adviser upon filing with the SEC. The Sub-Adviser
is authorized to exercise tender offers and exchange offers on behalf of the
Series, each as the Sub-Adviser determines is in the best interest of the
Series. To carry out such obligations, the Sub-Adviser shall exercise full
discretion and act for the Company in the same manner and with the same force
and effect as the Company itself might or could do. The Sub-Adviser and Adviser
further agree as follows:
(a) The Sub-Adviser will (1) manage each Series so that no action or
omission on the part of the Sub-Adviser will cause a Series to fail to meet the
requirements to qualify as a regulated investment company specified in Section
851 of the Internal Revenue Code of 1986, as amended (the "Code") (other than
the requirements for the Company to register under the 1940 Act and to file with
its tax return an election to be a regulated investment company and to file with
its tax return an election to be a regulated investment company and satisfy the
distribution requirements under Section 852 (a) of the Internal Revenue Code,
all of which shall not be the responsibility of the Sub-Adviser), (2) manage
each Series so that no action or omission on the part of the Sub-Adviser shall
cause a Series to fail to comply with the diversification requirements of
Section 817(h) of the Code, and the regulations issued thereunder, and (3) use
reasonable efforts to manage the Series so that no action or omission on the
part of the Sub-Adviser shall cause a Series to fail to comply with any other
rules and regulations pertaining to investment vehicles underlying variable
annuity or variable life insurance policies. The Adviser will notify the
Sub-Adviser promptly if the Adviser believes that a Series is in violation of
any requirement specified in the first sentence of this paragraph.
(b) On occasions when the Sub-Adviser deems the purchase or sale of a
security to be in the best interest of a Series as well as of other investment
advisory clients of the Sub-Adviser or any of its affiliates, the Sub-Adviser
may, to the extent permitted by applicable laws and regulations, but shall not
be obligated to, aggregate the securities to be so sold or purchased with those
of its other clients where such aggregation is not inconsistent with the
policies set forth in the Registration Statement. In such event, allocation of
the securities so purchased or
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sold, as well as the expenses incurred in the transaction, will be made by the
Sub-Adviser in a manner such as described in the Adviser's Form ADV and in the
Sub-Adviser's procedures governing such allocation, provided, however that the
Adviser and the Board shall have the right to review and request changes to the
Sub-Adviser's manner of allocation, provided further that any requested changes
to such manner of allocation shall be implemented on a prospective basis only.
(c) In connection with the purchase and sale of securities for each
Series, the Sub-Adviser will arrange for the transmission to the custodian and
portfolio accounting agent for the Series on a daily basis, such confirmation,
trade tickets, and other documents and information, including, but not limited
to, Cusip, Sedol, or other numbers that identify securities to be purchased or
sold on behalf of the Series, as may be reasonably necessary to enable the
custodian and portfolio accounting agent to perform their administrative and
recordkeeping responsibilities with respect to the Series. With respect to
portfolio securities to be purchased or sold through the Depository Trust
Company, the Sub-Adviser will arrange for the automatic transmission of the
confirmation of such trades to the Company's custodian and portfolio accounting
agent.
(d) The Sub-Adviser will assist the portfolio accounting agent for the
Company in determining or confirming, consistent with the procedures and
policies stated in the Registration Statement, the value of any portfolio
securities or other assets of the Series for which the portfolio accounting
agent seeks assistance from or identifies for review by the Sub-Adviser.
(e) The Sub-Adviser will make available to the Company and the
Adviser, promptly upon reasonable request, all of the Series' investment records
and ledgers maintained by the Sub-Adviser (which shall not include the records
and ledgers maintained by the custodian and portfolio accounting agent for the
Company) as are necessary to assist the Company and the Adviser to comply with
requirements of the 1940 Act and the Investment Advisers Act of 1940, as amended
(the "Advisers Act"), as well as other applicable laws. The Sub-Adviser will
furnish to regulatory authorities having the requisite authority any information
or reports in connection with such services which may be requested in order to
ascertain whether the operations of the Company are being conducted in a manner
consistent with applicable laws and regulations.
(f) The Sub-Adviser will provide reports to the Company's Board for
consideration at meetings of the Board on the investment program for the Series
and the issuers and securities represented in the Series' portfolio, and will
furnish the Company's Board with respect to the Series such periodic and special
reports as the Directors and the Adviser may reasonably request.
(g) In rendering the services required under this Agreement, the
Sub-Adviser may, from time to time, employ or associate with itself such
affiliated or unaffiliated person or persons as it believes necessary to assist
it in carrying out its obligations under this Agreement. The Sub-Adviser may not
retain, employ or associate itself with any non-affiliated company that would be
an "investment adviser," as that term is defined in the 1940 Act, to the Series
unless the contract with such company is approved by a majority of the Company's
Board and a majority who are not parties to any agreement or contract with such
company and who are not "interested
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persons," as defined in the 1940 Act, of the Company, the Adviser, or the
Sub-Adviser, or any such company, and is approved by the vote of a majority of
the outstanding voting securities of the applicable Series of the Company to the
extent required by the 1940 Act. The Sub-Adviser shall be responsible for making
reasonable inquiries and for reasonably ensuring that no associated person of
the Sub-Adviser, or of any company that the Sub-Adviser has retained, employed,
or with which it has associated with respect to the investment management of the
Series, to the best of the Sub-Adviser's knowledge, had in any material
connection with the handling of assets:
(i) been convicted, in the last ten (10) years, of any felony or
misdemeanor arising out of conduct involving embezzlement, fraudulent
conversion, or misappropriation of funds or securities, involving
violations of Sections 1341, 1342, or 1343 of Xxxxx 00, Xxxxxx Xxxxxx
Code, or involving the purchase or sale of any security; or
(ii) been found by any state regulatory authority, within the last ten
(10) years, to have violated or to have acknowledged violation of any
provision of any state insurance law involving fraud, deceit, or
knowing misrepresentation; or
(iii) been found by any federal or state regulatory authorities,
within the last ten (10) years, to have violated or to have
acknowledged violation of any provision of federal or state securities
laws involving fraud, deceit, or knowing misrepresentation.
(h) In using spot and forward foreign exchange contracts for the
Series as an investment the parties represent the following:
(i) That the Adviser is properly and lawfully established with full
power and authority to enter into spot and forward foreign exchange
contracts, to perform its obligations under such foreign exchange
contracts and to procure the Sub-Adviser to enter into such foreign
exchange contracts on its behalf.
(ii) That the Adviser may not, except for purposes of redemptions,
expenses, and other costs of doing business, encumber funds which the
Sub-Adviser has under the Sub-Adviser's management or which benefit
from the Sub-Adviser's investment advice. If the Adviser requires
funds for any redemptions, expenses, and other costs of doing
business, the Sub-Adviser will make funds available in a reasonably
timely manner for the Adviser to meet such obligations. The Adviser
reserves the right to segregate assets upon notice to the Sub-Adviser
and provide different arrangements for investment management with
respect to those assets.
(iii) That the Sub-Adviser has been granted full power and authority
to enter into foreign exchange contracts as agent on the Adviser's
behalf and to give instructions for settlement for the same.
(iv) That the Sub-Adviser has full authority to instruct Company's
custodian in conformity with its mandate.
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(v) That in the event of the termination of this Agreement, the
Sub-Adviser, if legally and operationally possible, may offer the
Series' counterparty the option to leave open any existing foreign
exchange contracts or to close them out at prevailing market rates.
(i) The Sub-Adviser will have no duty to vote any proxy solicited by
or with respect to the issuers of securities in which assets of the Series are
invested unless the Adviser gives the Sub-Adviser written instructions to the
contrary. The Sub-Adviser will immediately forward any proxy solicited by or
with respect to the issuers of securities in which assets of the Series are
invested to the Adviser or to any agent of the Adviser designated by the Adviser
in writing.
The Sub-Adviser will make appropriate personnel available for
consultation for the purpose of reviewing with representatives of the Adviser
and/or the Board any proxy solicited by or with respect to the issuers of
securities in which assets of the Series are invested. Upon request, the
Sub-Adviser will submit a written voting recommendation to the Adviser for such
proxies. In making such recommendations, the Sub-Adviser shall use its good
faith judgment to act in the best interests of the Series. The Sub-Adviser shall
disclose to the best of its knowledge any conflict of interest with the issuers
of securities that are the subject of such recommendation including whether such
issuers are clients or are being solicited as clients of the Sub-Adviser or of
its affiliates.
3. BROKER-DEALER SELECTION. The Sub-Adviser is hereby authorized to place
orders for the purchase and sale of securities and other investments for each
Series' portfolio, with or through such persons, brokers or dealers and to
negotiate commissions to be paid on such transactions and to supervise the
execution thereof. The Sub-Adviser's primary consideration in effecting any such
transaction will be to obtain the best execution for the Series, taking into
account the factors specified in the Registration Statement, which include price
(including the applicable brokerage commission or dollar spread), the size of
the order, the nature of the market for the security, the timing of the
transaction, the reputation, the experience and financial stability of the
broker-dealer involved, the quality of the service, the difficulty of execution,
and the execution capabilities and operational facilities of the firms involved,
and the firm's risk in positioning a block of securities. Accordingly, the price
to a Series in any transaction may be less favorable than that available from
another broker-dealer if the difference is reasonably justified, in the judgment
of the Sub-Adviser in the exercise of its fiduciary obligations to the Company,
by other aspects of the portfolio execution services offered.
Subject to such policies as the Board may determine and consistent with
Section 28(e) of the Securities Exchange Act of 1934, as amended, the
Sub-Adviser may effect a transaction on behalf of the Series with a
broker-dealer who provides brokerage and research services to the Sub-Adviser
notwithstanding the fact that the commissions payable with respect to any such
transaction may be greater than the amount of any commission another
broker-dealer might have charged for effecting that transaction, if the
Sub-Adviser determines in good faith that such amount of commission was
reasonable in relation to the value of the brokerage and research services
provided by such broker-dealer, viewed in terms of either that particular
transaction or
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the Sub-Adviser's or its affiliate's overall responsibilities with respect to
the Series and to their other clients as to which they exercise investment
discretion.
To the extent consistent with this Agreement, the Sub-Adviser is further
authorized to allocate orders placed by it on behalf of the Series to the
Sub-Adviser as agent if it is registered as a broker-dealer with the SEC, to any
of its affiliated broker-dealers as agents, or to such brokers and dealers who
also provide research or statistical material, or other services to the Series,
the Sub-Adviser, or an affiliate of the Sub-Adviser. Such allocation shall be in
such amounts and proportions as the Sub-Adviser shall determine consistent with
the above standards, and the Sub-Adviser will report on said allocation
regularly to the Board indicating the broker-dealers to which such allocations
have been made and the basis therefor.
4. DISCLOSURE ABOUT SUB-ADVISER. The Sub-Adviser has reviewed the
post-effective amendment to the Registration Statement for the Company filed
with the SEC that contains disclosure about the Sub-Adviser, and represents and
warrants that, with respect to the disclosure about or information relating,
directly or indirectly, to the Sub-Adviser, to the Sub-Adviser's knowledge, such
Registration Statement contains, as of the date hereof, no untrue statement of
any material fact and does not omit any statement of a material fact which was
required to be stated therein or necessary to make the statements contained
therein not misleading. The Sub-Adviser further represents and warrants that it
is a duly registered investment adviser under the Advisers Act, or alternatively
that it is not required to be a registered investment adviser under the Advisers
Act to perform the duties described in this Agreement, and that it is a duly
registered investment adviser in all states in which the Sub-Adviser is required
to be registered and will maintain such registration so long as this Agreement
remains in effect. The Sub-Adviser will provide the Adviser with a copy of the
Sub-Adviser's Form ADV, Part II at the time the Form ADV and any amendment is
filed with the SEC, and a copy of its written code of ethics complying with the
requirements of Rule 17j-1 under the 1940 Act, together with evidence of its
adoption.
5. EXPENSES. During the term of this Agreement, the Sub-Adviser will pay
all expenses incurred by it and its staff and for their activities in connection
with the portfolio management duties specified in this Agreement. In addition,
if the Company is required, under applicable law, to supplement the Registration
Statement because of a change requested by the Sub-Adviser, the Sub-Adviser will
reimburse the Company and/or the Adviser for the cost of preparing, printing and
distributing such supplement, unless the Sub-Adviser is requesting the change in
order to comply with an applicable law, rule or regulation. The Adviser or the
Company shall be responsible for all the expenses of the Company's operations
including, but not limited to:
(a) Expenses of all audits by the Company's independent public
accountants;
(b) Expenses of the Series' transfer agent, registrar, dividend
disbursing agent, and shareholder recordkeeping services;
(c) Expenses of the Series' custodial services including recordkeeping
services provided by the custodian;
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(d) Expenses of obtaining quotations for calculating the value of each
Series' net assets, including charges and expenses for accounting, pricing and
appraisal services and related overhead, including, to the extent such services
are performed by personnel of the Adviser or its affiliates, office space and
personnel compensation, training and benefits;
(e) Expenses of obtaining Portfolio Activity Reports and Analyses of
International Management Reports (as appropriate) for each Series;
(f) Expenses of maintaining the Company's tax records;
(g) Salaries and other compensation of any of the Company's executive
officers and employees, if any, who are not officers, directors, stockholders,
or employees of the Sub-Adviser or an affiliate of the Sub-Adviser;
(h) Taxes levied against the Company;
(i) Brokerage fees and commissions, transfer fees, registration fees,
taxes and similar liabilities and costs properly payable or incurred in
connection with the purchase and sale of portfolio securities for the Series;
(j) Costs, including the interest expense, of borrowing money;
(k) Costs and/or fees incident to meetings of the Company's
shareholders, the preparation and mailings of prospectuses and reports of the
Company to its shareholders, the filing of reports with regulatory bodies, the
maintenance of the Company's existence, and the regulation of shares with
federal and state securities or insurance authorities;
(l) The Company's legal fees, including the legal fees related to the
registration and continued qualification of the Company's shares for sale;
(m) Directors' fees and expenses to directors who are not officers,
employees, or stockholders of the Sub-Adviser or any affiliate thereof;
(n) The Company's pro rata portion of the fidelity bond required by
Section 17(g) of the 1940 Act, or other insurance premiums;
(o) Association membership dues and insurance premiums;
(p) Extraordinary expenses of the Company as may arise including
expenses incurred in connection with litigation, proceedings, and other claims
(unless the Sub-Adviser is responsible for such expenses under Section 13 of
this Agreement), and the legal obligations of the Company to indemnify its
Directors, officers, employees, shareholders, distributors, and agents with
respect thereto; and
(q) Organizational and offering expenses.
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(r) Any distribution fees paid by the Company in accordance with Rule
12b-1 promulgated by the Commission pursuant to the 1940 Act.
(s) The cost of preparing and printing share certificates.
(t) Any other expense that the Company or the Adviser may incur (A) as
a result of a change in the law or regulations, (B) as a result of a mandate
from the Board with associated costs of a character generally assumed by
similarly structured investment companies or (C) that is similar to the expenses
listed above, and that is approved by the Board (including a majority of the
Independent Directors) as being an appropriate expense of the Company. The
Company or the Adviser, as the case may be, shall reimburse the Sub-Adviser for
any such expenses or other expenses of the Company or the Adviser, as may be
reasonably incurred by the Sub-Adviser on behalf of the Series or the Adviser.
The Sub-Adviser shall keep and supply to the Company and the Adviser adequate
records of all such expenses.
6. COMPENSATION. For the services provided to each Series, the Adviser will
pay the Sub-Adviser a fee, payable as described in SCHEDULE A.
The fee will be prorated to reflect any portion of a calendar month that
this Agreement is not in effect among the parties. In accordance with the
provisions of the Management Agreement, the Adviser is solely responsible for
the payment of fees to the Sub-Adviser, and the Sub-Adviser agrees to seek
payment of its fees solely from the Adviser.
7. SEED MONEY. The Adviser agrees that the Sub-Adviser shall not be
responsible for providing money for the initial capitalization of the Series.
8. COMPLIANCE.
(a) The Sub-Adviser and the Adviser acknowledge that the Sub-Adviser
is not the compliance agent for any Series or for the Company, and does not have
access to all of each Series' books and records necessary to perform certain
compliance testing. To the extent that the Sub-Adviser has agreed to perform the
services specified in Section 2 in accordance with the Company's registration
statement, the Company's Articles of Incorporation and By-Laws, the Company's
Prospectus and any policies adopted by the Company's Board applicable to the
Series (collectively, the "Charter Requirements"), and in accordance with
applicable law (including Subchapters M and L of the Code, the 1940 Act and the
Advisers Act ("Applicable Law")), the Sub-Adviser shall perform such services
based upon its books and records with respect to each Series, which comprise a
portion of each Series' books and records, and upon information and written
instructions received from the Company, the Adviser or the Company's
administrator, and shall not be held responsible under this Agreement so long as
it performs such services in accordance with this Agreement, the Charter
Requirements and Applicable Law based upon such books and records and such
information and instructions provided by the Company, the Adviser, or the
Company's administrator. The Adviser shall promptly provide the Sub-Adviser with
copies of the Company's registration statement, the Company's Articles of
Incorporation and By-Laws, the Company's currently effective Prospectus and any
written policies and procedures adopted by the Company's Board applicable to the
Portfolio and any
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amendments or revisions thereto. The Sub-Adviser agrees that it shall promptly
notify the Adviser and the Company (1) in the event that the SEC or other
governmental authority has censured the Sub-Adviser; placed limitations upon its
activities, functions or operations; suspended or revoked its registration, if
any, as an investment adviser; or has commenced proceedings or an investigation
that may result in any of these actions, (2) upon having a reasonable basis for
believing that the Series has ceased to qualify or might not qualify as a
regulated investment company under Subchapter M of the Code, or (3) upon having
a reasonable basis for believing that the Series has ceased to comply with the
diversification provisions of Section 817(h) of the Code or the regulations
thereunder. The Sub-Adviser further agrees to notify the Adviser and the Company
promptly of any material fact known to the Sub-Adviser respecting or relating to
the Sub-Adviser that is not contained in the Registration Statement as then in
effect, and is required to be stated therein or necessary to make the statements
therein not misleading, or of any statement contained therein that becomes
untrue in any material respect.
(b) The Adviser agrees that it shall immediately notify the
Sub-Adviser (1) in the event that the SEC has censured the Adviser or the
Company; placed limitations upon either of their activities, functions, or
operations; suspended or revoked the Adviser's registration as an investment
adviser; or has commenced proceedings or an investigation that may result in any
of these actions, (2) upon having a reasonable basis for believing that the
Series has ceased to qualify or might not qualify as a regulated investment
company under Subchapter M of the Code, or (3) upon having a reasonable basis
for believing that the Series has ceased to comply with the diversification
provisions of Section 817(h) of the Code or the regulations thereunder.
9. BOOKS AND RECORDS. In compliance with the requirements of Rule 31a-3
under the 1940 Act, the Sub-Adviser hereby agrees that all records which it
maintains for the Series are the property of the Company and further agrees to
surrender promptly to the Company any of such records upon the Company's or the
Adviser's reasonable request, although the Sub-Adviser may, at its own expense,
make and retain a copy of such records. The Sub-Adviser further agrees to
preserve for the periods prescribed by Rule 31a-2 under the 1940 Act the records
required to be maintained by Rule 31a-l under the 1940 Act and to preserve the
records required by Rule 204-2 under the Advisers Act for the period specified
in such rules.
10. COOPERATION; CONFIDENTIALITY. Each party to this Agreement agrees to
cooperate with each other party and with all appropriate governmental
authorities having the requisite jurisdiction (including, but not limited to,
the SEC and state insurance regulators) in connection with any investigation or
inquiry relating to this Agreement or the Company.
Subject to the foregoing, the Sub-Adviser shall treat as confidential all
information pertaining to the Company and actions of the Company, the Adviser
and the Sub-Adviser, and the Adviser shall treat as confidential and use only in
connection with the Series all information furnished to the Company or the
Adviser by the Sub-Adviser, in connection with its duties under the Agreement
except that the aforesaid information need not be treated as confidential if
required to be disclosed under applicable law, if generally available to the
public through means other than by disclosure by the Sub-Adviser or the Adviser,
or if available from a source other than the Adviser, Sub-Adviser or the
Company.
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11. REPRESENTATIONS RESPECTING SUB-ADVISER.
(a) During the term of this Agreement, the Adviser agrees to furnish
to the Sub-Adviser at its principal offices prior to use thereof copies of all
Registration Statements and amendments thereto, prospectuses, proxy statements,
reports to shareholders, sales literature or other material prepared for
distribution to shareholders of the Company or any Series or to the public that
refer or relate in any way to the Sub-Adviser or any of its affiliates (other
than the Adviser), or that use any derivative of the name "Pioneer Investment
Management, Inc.," or any derivative thereof or logos associated therewith. The
Adviser agrees that they will not use any such material without the prior
consent of the Sub-Adviser, which consent shall not be unreasonably withheld. In
the event of the termination of this Agreement, the Company and the Adviser will
furnish to the Sub-Adviser copies of any of the above-mentioned materials that
refer or relate in any way to the Sub-Adviser;
(b) The Company and the Adviser will furnish to the Sub-Adviser such
information relating to either of them or the business affairs of the Company as
the Sub-Adviser shall from time to time reasonably request in order to discharge
its obligations hereunder;
(c) The Adviser agrees that neither the Adviser nor affiliated persons
of the Adviser shall give any information or make any representations or
statements in connection with the sale of shares of the Series concerning the
Sub-Adviser or the Series other than the information or representations
contained in the Registration Statement, prospectus, or statement of additional
information for the Company, as they may be amended or supplemented from time to
time, or in reports or proxy statements for the Company, or in sales literature
or other promotional material approved in advance by the Sub-Adviser, except
with the prior permission of the Sub-Adviser.
12. SERVICES NOT EXCLUSIVE. The services of the Sub-Adviser to the Series
and the Company are not to be deemed to be exclusive, and the Sub-Adviser shall
be free to render investment advisory or other services to others (including
other investment companies) and to engage in other activities.
13. PROHIBITED CONDUCT. The Sub-Adviser may not consult with any other
sub-adviser of the Company concerning transactions in securities or other assets
for any investment portfolio of the Company, including the Series, except that
such consultations are permitted between the current and successor sub-advisers
of the Series in order to effect an orderly transition of portfolio management
duties so long as such consultations are not concerning transactions prohibited
by Section 17(a) of the 1940 Act.
14. LIABILITY. Except as may otherwise be required by the 1940 Act or the
rules thereunder or other applicable law, the Adviser agrees that the
Sub-Adviser, any affiliated person of the Sub-Adviser, and each person, if any,
who, within the meaning of Section 15 of the Securities Act of 1933, as amended
("1933 Act"), controls the Sub-Adviser (1) shall bear no responsibility and
shall not be subject to any liability for any act or omission respecting any
series of the Company that is not a Series hereunder; and (2) shall not be
liable for any error of judgment, mistake of law, any diminution in value of the
investment portfolio of the Series, or
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subject to any damages, expenses, or losses in connection with, any act or
omission connected with or arising out of any services rendered under this
Agreement, except by reason of willful misfeasance, bad faith, or negligence in
the performance by the Sub-Adviser of its duties, or by reason of reckless
disregard by the Sub-Adviser of its obligations and duties under this Agreement.
The parties to this Agreement acknowledge and agree that all litigation
arising hereunder, whether direct or indirect, and of any and every nature
whatsoever shall be satisfied solely out of the assets of the Series and that no
Director, officer or holder of shares of beneficial interest of the Series shall
be personally liable for any of the foregoing liabilities.
15. INDEMNIFICATION.
(a) Notwithstanding Section 14 of this Agreement, the Adviser agrees
to indemnify and hold harmless the Sub-Adviser, any affiliated person of the
Sub-Adviser (other than the Adviser), and each person, if any, who, within the
meaning of Section 15 of the 1933 Act controls ("controlling person") the
Sub-Adviser (all of such persons being referred to as "Sub-Adviser Indemnified
Persons") against any and all losses, claims, damages, liabilities, or
litigation (including legal and other expenses) to which a Sub-Adviser
Indemnified Person may become subject under the 1933 Act, the 1940 Act, the
Advisers Act, the Code, under any other statute, at common law or otherwise,
arising out of the Adviser's responsibilities to the Company which (1) may be
based upon any violations of willful misconduct, malfeasance, bad faith or
negligence by the Adviser, any of its employees or representatives, or any
affiliate of or any person acting on behalf of the Adviser, or (2) may be based
upon any untrue statement or alleged untrue statement of a material fact
supplied by, or which is the responsibility of, the Adviser and contained in the
Registration Statement or prospectus covering shares of the Company or any
Series, or any amendment thereof or any supplement thereto, or the omission or
alleged omission to state therein a material fact known or which should have
been known to the Adviser and was required to be stated therein or necessary to
make the statements therein not misleading, unless such statement or omission
was made in reliance upon information furnished to the Adviser or the Company or
to any affiliated person of the Adviser by a Sub-Adviser Indemnified Person;
provided however, that in no case shall the indemnity in favor of the
Sub-Adviser Indemnified Person be deemed to protect such person against any
liability to which any such person would otherwise be subject by reason of
willful misfeasance, bad faith, or negligence in the performance of its duties,
or by reason of its reckless disregard of obligations and duties under this
Agreement.
(b) Notwithstanding Section 14 of this Agreement, the Sub-Adviser
agrees to indemnify and hold harmless the Adviser, any affiliated person of the
Adviser (other than the Sub-Adviser), and each person, if any, who, is a
controlling person of the Adviser (all of such persons being referred to as
"Adviser Indemnified Persons") against any and all losses, claims, damages,
liabilities, or litigation (including legal and other expenses) to which an
Adviser Indemnified Person may become subject under the 1933 Act, 1940 Act, the
Advisers Act, the Code, under any other statute, at common law or otherwise,
arising out of the Sub-Adviser's responsibilities as Sub-Adviser of the Series
which (1) may be based upon any violations of willful misconduct, malfeasance,
bad faith or negligence by the Sub-Adviser, any of its
11
employees or representatives, or any affiliate of or any person acting on behalf
of the Sub-Adviser, including but not limited to its responsibilities under
Section 2, Paragraph (a) of this Agreement, or (2) any breach of any
representations or warranties contained in Section 4; provided, however, that in
no case shall the indemnity in favor of an Adviser Indemnified Person be deemed
to protect such person against any liability to which any such person would
otherwise be subject by reason of willful misfeasance, bad faith, negligence in
the performance of its duties, or by reason of its reckless disregard of its
obligations and duties under this Agreement.
(c) The Adviser shall not be liable under Paragraph (a) of this
Section 15 with respect to any claim made against a Sub-Adviser Indemnified
Person unless such Sub-Adviser Indemnified Person shall have notified the
Adviser in writing within a reasonable time after the summons, notice, or other
first legal process or notice giving information of the nature of the claim
shall have been served upon such Sub-Adviser Indemnified Person (or after such
Sub-Adviser Indemnified Person shall have received notice of such service on any
designated agent), but failure to notify the Adviser of any such claim shall not
relieve the Adviser from any liability which it may have to the Sub-Adviser
Indemnified Person against whom such action is brought except to the extent the
Adviser is prejudiced by the failure or delay in giving such notice. In case any
such action is brought against the Sub-Adviser Indemnified Person, the Adviser
will be entitled to participate, at its own expense, in the defense thereof or,
after notice to the Sub-Adviser Indemnified Person, to assume the defense
thereof, with counsel satisfactory to the Sub-Adviser Indemnified Person. If the
Adviser assumes the defense of any such action and the selection of counsel by
the Adviser to represent both the Adviser and the Sub-Adviser Indemnified Person
would result in a conflict of interests and therefore, would not, in the
reasonable judgment of the Sub-Adviser Indemnified Person, adequately represent
the interests of the Sub-Adviser Indemnified Person, the Adviser will, at its
own expense, assume the defense with counsel to the Adviser and, also at its own
expense, with separate counsel to the Sub-Adviser Indemnified Person, which
counsel shall be satisfactory to the Adviser and to the Sub-Adviser Indemnified
Person. The Sub-Adviser Indemnified Person shall bear the fees and expenses of
any additional counsel retained by it, and the Adviser shall not be liable to
the Sub-Adviser Indemnified Person under this Agreement for any legal or other
expenses subsequently incurred by the Sub-Adviser Indemnified Person
independently in connection with the defense thereof other than reasonable costs
of investigation. The Adviser shall not have the right to compromise on or
settle the litigation without the prior written consent of the Sub-Adviser
Indemnified Person if the compromise or settlement results, or may result in a
finding of wrongdoing on the part of the Sub-Adviser Indemnified Person.
(d) The Sub-Adviser shall not be liable under Paragraph (b) of this
Section 15 with respect to any claim made against an Adviser Indemnified Person
unless such Adviser Indemnified Person shall have notified the Sub-Adviser in
writing within a reasonable time after the summons, notice, or other first legal
process or notice giving information of the nature of the claim shall have been
served upon such Adviser Indemnified Person (or after such Adviser Indemnified
Person shall have received notice of such service on any designated agent), but
failure to notify the Sub-Adviser of any such claim shall not relieve the
Sub-Adviser from any liability which it may have to the Adviser Indemnified
Person against whom such action is brought except to the extent the Sub-Adviser
is prejudiced by the failure or delay in giving such notice. In case any such
action is brought against the Adviser Indemnified Person, the
12
Sub-Adviser will be entitled to participate, at its own expense, in the defense
thereof or, after notice to the Adviser Indemnified Person, to assume the
defense thereof, with counsel satisfactory to the Adviser Indemnified Person. If
the Sub-Adviser assumes the defense of any such action and the selection of
counsel by the Sub-Adviser to represent both the Sub-Adviser and the Adviser
Indemnified Person would result in a conflict of interests and therefore, would
not, in the reasonable judgment of the Adviser Indemnified Person, adequately
represent the interests of the Adviser Indemnified Person, the Sub-Adviser will,
at its own expense, assume the defense with counsel to the Sub-Adviser and, also
at its own expense, with separate counsel to the Adviser Indemnified Person,
which counsel shall be satisfactory to the Sub-Adviser and to the Adviser
Indemnified Person. The Adviser Indemnified Person shall bear the fees and
expenses of any additional counsel retained by it, and the Sub-Adviser shall not
be liable to the Adviser Indemnified Person under this Agreement for any legal
or other expenses subsequently incurred by the Adviser Indemnified Person
independently in connection with the defense thereof other than reasonable costs
of investigation. The Sub-Adviser shall not have the right to compromise on or
settle the litigation without the prior written consent of the Adviser
Indemnified Person if the compromise or settlement results, or may result in a
finding of wrongdoing on the part of the Adviser Indemnified Person.
(e) The Adviser shall not be liable under this Section 15 to indemnify
and hold harmless the Sub-Adviser and the Sub-Adviser shall not be liable under
this Section 15 to indemnify and hold harmless the Adviser with respect to any
losses, claims, damages, liabilities, or litigation that first become known to
the party seeking indemnification during any period that the Sub-Adviser is,
within the meaning of Section 15 of the 1933 Act, a controlling person of the
Adviser.
16. DURATION AND TERMINATION. This Agreement shall become effective with
respect to each Series on the date first indicated above. Unless terminated as
provided herein, the Agreement shall remain in full force and effect until
NOVEMBER 30, 2007, and continue on an annual basis thereafter with respect to
each Series; provided that such annual continuance is specifically approved each
year by (a) the vote of a majority of the entire Board of the Company, or by the
vote of a majority of the outstanding voting securities (as defined in the 0000
Xxx) of each Series, and (b) the vote of a majority of those Directors who are
not parties to this Agreement or interested persons (as such term is defined in
the 0000 Xxx) of any such party to this Agreement cast in person at a meeting
called for the purpose of voting on such approval. The Sub-Adviser shall not
provide any services for such Series or receive any fees on account of such
Series with respect to which this Agreement is not approved as described in the
preceding sentence. However, any approval of this Agreement by the holders of a
majority of the outstanding shares (as defined in the 0000 Xxx) of a Series
shall be effective to continue this Agreement with respect to such Series
notwithstanding (i) that this Agreement has not been approved by the holders of
a majority of the outstanding shares of any other Series or (ii) that this
Agreement has not been approved by the vote of a majority of the outstanding
shares of the Company, unless such approval shall be required by any other
applicable law or otherwise.
Notwithstanding the foregoing, this Agreement may be terminated for each or
any Series hereunder: (a) by the Adviser at any time without penalty, upon sixty
(60) days' written notice to the Sub-Adviser and the Company, (b) at any time
without payment of any penalty by the
13
Company, upon the vote of a majority of the Company's Board or a majority of the
outstanding voting securities of each Series, upon sixty (60) days' written
notice to the Adviser and the Sub-Adviser, or (c) by the Sub-Adviser at any time
without penalty, upon three (3) months' written notice to the Adviser and the
Company, unless the Adviser or the Company requests additional time to find a
replacement for the Sub-Adviser, in which case the Sub-Adviser shall allow the
additional time requested by the Company or the Adviser not to exceed three (3)
months beyond the initial three-month notice period; provided however, that the
Sub-Adviser may terminate this Agreement at any time without penalty effective
upon written notice to the Adviser and the Company, in the event either the
Sub-Adviser (acting in good faith) or the Adviser ceases to be registered as an
investment adviser under the Advisers Act or otherwise becomes legally incapable
of providing investment management services pursuant to its respective contract
with the Company, or in the event the Adviser becomes bankrupt or otherwise
incapable of carrying out its obligations under this Agreement, or in the event
that the Sub-Adviser does not receive compensation for its services from the
Adviser or the Company as required by the terms of this Agreement. In addition,
this Agreement shall terminate with respect to a Series in the event that it is
not approved by the vote of a majority of the outstanding voting securities of
that Series at a meeting of shareholders at which approval of the Agreement
shall be considered by shareholders of the Series.
In the event of termination for any reason, all records of each Series for
which the Agreement is terminated shall promptly be returned to the Adviser or
the Company, free from any claim or retention of rights in such records by the
Sub-Adviser, although the Sub-Adviser may, at its own expense, make and retain a
copy of such records. The Agreement shall automatically terminate in the event
of its assignment (as such term is described in the 1940 Act). In the event this
Agreement is terminated or is not approved in the manner described above, the
Sections or Paragraphs numbered 2(e), 9, 10, 11, 14, 15, and 19 of this
Agreement shall remain in effect, as well as any applicable provision of this
Paragraph numbered 16.
17. NOTICES. Any notice must be in writing and shall be deemed to have been
given when (1) delivered in person, (2) dispatched by telegram or electric
facsimile transfer (confirmed in writing by postage prepaid first class mail
simultaneously dispatched), (3) sent by internationally recognized overnight
courier service (with receipt confirmed by such overnight courier service), or
(4) sent by registered or certified mail, to the other party at the address of
such party set forth below or at such other address as such party may from time
to time specify in writing to the other party.
If to the Adviser:
ING Life Insurance and Annuity Company
000 Xxxxxxxxxx Xxxxxx, XX00
Xxxxxxxx, XX 00000
Attention: Xxxxxx X. Xxxxxxxxxxx
14
If to the Sub-Adviser:
Pioneer Investment Management, Inc.
00 Xxxxx Xxxxxx
Xxxxxx, XX 00000
Attention: General Counsel
18. AMENDMENTS. No provision of this Agreement may be changed, waived,
discharged or terminated orally, but only by an instrument in writing signed by
the party against which enforcement of the change, waiver, discharge or
termination is sought, and no amendment of this Agreement shall be effective
until approved by an affirmative vote of (i) the Directors of the Company,
including a majority of the Directors of the Company who are not interested
persons of any party to this Agreement, cast in person at a meeting called for
the purpose of voting on such approval, if such approval is required by
applicable law; and (ii) the holders of a majority of the outstanding voting
securities of the Series.
Notwithstanding the foregoing, this Agreement may be amended without the
approval of a majority of the Series' outstanding voting securities if the
amendment relates solely to a change that is permitted or not prohibited under
federal law, rule, regulation, SEC Order or SEC staff interpretation thereof to
be made without shareholder approval.
19. USE OF NAMES.
(a) It is understood that the name "ING Life Insurance and Annuity
Company" or any derivative thereof or logo associated with that name is the
valuable property of the Adviser and/or its affiliates, and that the Sub-Adviser
has the right to use such name (or derivative or logo) only with the approval of
the Adviser and only so long as the Adviser is Adviser to the Company and/or the
Series. Upon termination of the Management Agreement between the Company and the
Adviser, the Company or the Adviser shall notify the Sub-Adviser of the
termination of the Management Agreement and the Sub-Adviser shall as soon as is
reasonably possible cease to use such name (or derivative or logo).
(b) It is understood that the name "Pioneer Investment Management,
Inc." or any derivative thereof or logos associated with those names are the
valuable property of the Sub-Adviser and its affiliates and that the Company
and/or the Series have the right to use such names (or derivatives or logos) in
offering materials of the Company with the approval of the Sub-Adviser and for
so long as the Sub-Adviser is a sub-adviser to the Company and/or the Series.
Upon termination of this Agreement between the Adviser and the Sub-Adviser, the
Company shall as soon as is reasonably possible cease to use such names (or
derivatives or logos).
20. MISCELLANEOUS.
(c) This Agreement shall be governed by the laws of the state of
Delaware, without giving effect to the provisions, policies or principals
thereof relating to choice or conflict of laws, provided that nothing herein
shall be construed in a manner inconsistent with the 1940 Act, the Advisers Act
or rules or orders of the SEC thereunder. The term "affiliate" or "affiliated
15
person" as used in this Agreement shall mean "affiliated person" as defined in
Section 2(a)(3) of the 1940 Act.
(d) The captions of this Agreement are included for convenience only
and in no way define or limit any of the provisions hereof or otherwise affect
their construction or effect.
(c) If any provision of this Agreement shall be held or made invalid
by a court decision, statute, rule or otherwise, the remainder of this Agreement
shall not be affected thereby, and to this extent, the provisions of this
Agreement shall be deemed to be severable.
(d) Nothing herein shall be construed as constituting the Sub-Adviser
as an agent of the Adviser, or constituting the Adviser as an agent of the
Sub-Adviser.
(e) The Adviser and the Sub-Adviser each affirm that it has procedures
in place reasonably designed to protect the privacy of non-public personal
consumer/customer financial information.
(f) The Adviser and the Sub-Adviser acknowledge that each may have
obligations under the laws and regulations of the United States to verify the
source of funds and identity of investors in accordance with the USA Patriot
Act, and any rules or regulations adopted thereunder (collectively the "Patriot
Act"). Each party agrees to assist the other parties in monitoring transactions
in accordance with the Patriot Act. If required by applicable law or regulation,
each party shall provide the other parties with documentation evidencing the
identity of a beneficial owner or owners of shares of the Series upon request
when a party is required by a law, court order, of by administrative or
regulatory entity to disclose the identity of the beneficial owner(s).
(g) This Agreement may be executed in counterparts.
16
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed as of the day and year first above written.
ING LIFE INSURANCE AND ANNUITY COMPANY
By:
-----------------------
Name:
-----------------------
Title:
-----------------------
PIONEER INVESTMENT MANAGEMENT, INC.
By:
-----------------------
Name:
-----------------------
Title:
-----------------------
17
SCHEDULE A
COMPENSATION FOR SERVICES TO SERIES
For the services provided by Pioneer Investment Management, Inc.
("Sub-Adviser") to the following Series of ING Partners, Inc., pursuant to the
attached Sub-Advisory Agreement, the Adviser will pay the Sub-Adviser a fee,
computed daily and payable monthly, based on the average daily net assets of the
Series at the following annual rates of the average daily net assets of the
Series:
SERIES RATE
------ ----
ING Pioneer High Yield Portfolio 0.35% on the first $250 million in assets; and
0.30% thereafter
If this Agreement becomes effective or terminates before the end of any
month, the fee for the period from the effective date to the end of the month or
from the beginning of such month to the date of termination, as the case may be,
shall be prorated according to the proportion that such period bears to the full
month in which such effectiveness or termination occurs.
18
