FORM OF FUND PARTICIPATION AGREEMENT
Golden American Life Insurance Company (the "Company"), and Aetna
Variable Fund, Aetna Variable Encore Fund, Aetna Income Shares, Aetna Balanced
VP, Inc., Aetna GET Fund, on behalf of each of its series, and Aetna Variable
Portfolios, Inc., on behalf of each of its series (each a "Fund" or in the
aggregate "Funds"), and Aeltus Investment Management, Inc. ("Aeltus" or
"Adviser") hereby agree to an arrangement whereby the Funds shall be made
available to serve as underlying investment media for Variable Annuity Contracts
("Contracts") to be issued by the Company.
1. ESTABLISHMENT OF ACCOUNT.
The Company represents that it has established Variable Annuity Account B
and may establish such other accounts as may be set forth in Schedule A
attached hereto (as may be amended from time to time with the mutual
consent of the parties hereto) (the "Accounts"), each of which is a
separate account registered under the Investment Company Act of 1940
(except for such accounts for which no registration is required), to
serve as investment vehicles for the Contracts. Each Contract provides
for the allocation of net amounts received by the Company to an Account
for investment in the shares of one of more specified open-end management
investment companies available through that Account as underlying
investment media. Selection of a particular investment management company
and changes therein from time to time are made by the participant or
Contract owner, as applicable under a particular Contract.
2. PRICING INFORMATION; ORDERS; SETTLEMENT.
(a) Each Fund will make shares available to be purchased by the
Company, and will accept redemption orders from the Company, on
behalf of each Account at the net asset value applicable to each
order on those days on which the Fund calculates its net asset
value (a "Business Day"). Fund shares shall be purchased and
redeemed in such quantity and at such times as determined by the
Company to be necessary to meet the requirements of those
Contracts for which the Fund serves as underlying investment
media, provided, however, that the Board of Directors of the Fund
(hereinafter the "Directors") may, upon reasonable notice to the
Company, refuse to sell shares of any Fund to any person, or
suspend or terminate the offering of shares of any Fund if such
action is required by law or by regulatory authorities having
jurisdiction or is, in the sole discretion of the Directors acting
in good faith and in light of their fiduciary duties under federal
and/or any applicable state laws, necessary in the best interests
of the shareholders of such Fund.
(b) Each Fund will provide to the Company closing net asset value,
dividend and capital gain information at the close of trading each
day that the New York Stock Exchange (the "Exchange") is open
(each such day a "Business Day"), and in no event later than
6:30 p.m. eastern time on such Business Day. The Company will send
via facsimile or electronic transmission to each Fund or its
specified agent orders to purchase and/or redeem Fund shares by
9:30 a.m. eastern time the following business day. Payment for net
purchases will be wired by the Company to an account designated by
the Fund.
(c) Each Fund hereby appoints the Company as its agent for the limited
purpose of accepting purchase and redemption orders for Fund
shares relating to the Contracts from Contract owners. Orders from
Contract owners received by the Company, acting as agent for the
Fund, from any distributor of the Contracts (including affiliates
of the Company), prior to the close of the Exchange on any given
business day will be executed by the Fund at the net asset value
determined as of the close of the Exchange on such Business Day,
provided that the Fund receives written (or facsimile) notice of
such order by 9:30 a.m. eastern time on the next following
Business Day. Any orders received by the Company acting as agent
on such day but after the close of the Exchange will be executed
by the Fund at the net asset value determined as of the close of
the Exchange on the next business day following the day of receipt
of such order, provided that the Fund receives written (or
facsimile) notice of such order by 9:30 a.m. eastern time within
two days following the day of receipt of such order.
(d) Payments for net redemptions of shares of a Fund will be wired by
the Fund to an account designated by the Company. Payments for net
purchases of the Fund will be wired by the Company to an account
designated by the Fund on the same Business Day the Company places
an order to purchase Fund shares. Payments shall be in federal
funds transmitted by wire.
(e) Each party has the right to rely on information or confirmations
provided by the other party (or by any affiliate of the other
party), and shall not be liable in the event that an error is a
result of any misinformation supplied by the other party. The
Company shall assume responsibility as herein described for any
loss to a Fund caused by a cancellation or correction made to an
Instruction by a Contract owner or person authorized to act on his
or her behalf subsequent to the date as of which such Instruction
has been received by the Company and originally relayed to Aeltus,
and the Company will immediately pay such loss to such Fund upon
the Company's receipt of written notification, with supporting
data. Aeltus shall indemnify and hold the Company harmless, from
the effective date of this Agreement, against any amount the
Company is required to pay to a Contract owner due to: (i) an
incorrect calculation of a Fund's daily net asset value, dividend
rate, or capital gains distribution rate or (ii) incorrect or
unreasonably late reporting of the daily net asset value deemed
material in accordance with the Fund's error correction policy,
dividend rate, or capital gain distribution rate, upon written
notification by the Company, with supporting data, to Aeltus.
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(f) The Company agrees to purchase and redeem the shares of the Funds
named in this Agreement or in Schedule B hereof in accordance with
the provisions of each Fund's then-current prospectus and
statement of additional information. The Company shall not permit
any person other than a Contract owner or person authorized to act
on his or her behalf to give instructions to the Company which
would require the Company to redeem or exchange shares of a Fund.
This provision shall not be construed to prohibit the Company from
substituting shares of another fund, as permitted by law.
3. EXPENSES.
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(a) Except as otherwise provided in this Agreement, all expenses
incident to the performance by each respective Fund under this
Agreement shall be paid by that Fund, including the cost of
registration of its shares with the Securities and Exchange
Commission (the "SEC") and in states where required. All expenses
incident to performance by each party of its respective duties
under this Agreement shall be paid by that party, unless otherwise
specified in this Agreement.
(b) The Funds or the Adviser shall provide to the Company periodic
fund reports to shareholders and other materials that are required
by law to be sent to Contract owners. In addition, the Funds or
the Adviser shall provide the Company with a sufficient quantity
of prospectuses, statements of additional information and any
supplements to any of these materials, to be used in connection
with the offerings and transactions contemplated by this
Agreement. In addition, the Funds shall provide the Company with a
sufficient quantity of proxy material that is required to be sent
to Contract owners. The Adviser shall be permitted to review and
approve the typeset form of such material prior to such printing
provided such material has been provided by the Adviser to the
Company within a reasonable period of time prior to typesetting.
(c) In lieu of the Funds' or Adviser's providing printed copies of
prospectuses, statements of additional information and any
supplements to any of these materials, and periodic fund reports
to shareholders, the Company shall have the right to request that
the Funds transmit a copy of such materials in an electronic
format, which the Company may use to have such materials printed
together with similar materials of other Account funding media
that the Company or any distributor will distribute to existing or
prospective Contract owners.
4. REPRESENTATIONS.
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The Company agrees that it and its agents shall not, without the written
consent of a Fund or the Adviser, make representations concerning the
Fund, or its shares except those contained in the then current
prospectuses and in current printed sales literature approved by or
deemed approved by the Fund or the Adviser.
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5. TERMINATION.
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This agreement shall terminate as to the sale and issuance of new
Contracts:
(a) at the option of either the Company, the Adviser or with respect
to any Fund, upon sixty days advance written notice to the other
parties;
(b) at the option of the Company, upon one week advance written notice
to the Adviser and to any Fund, if Fund shares are not available
for any reason to meet the requirement of Contracts as determined
by the Company. Reasonable advance notice of election to terminate
shall be furnished by the Company;
(c) at the option of either the Company, the Adviser or any Fund,
immediately upon institution of formal proceedings against the
broker-dealer or broker-dealers marketing the Contracts, the
Account, the Company, the Fund or the Adviser by the National
Association of Securities Dealers, Inc. (the "NASD"), the SEC or
any other regulatory body;
(d) upon the determination of the Accounts to substitute for the
shares of a Fund the shares of another investment company in
accordance with the terms of the applicable Contracts. The Company
will give sixty days written notice to the Fund and the Adviser of
any decision to replace the shares of that Fund;
(e) upon assignment of this Agreement, unless made with the written
consent of all other parties hereto;
(f) if shares of a Fund are not registered, issued or sold in
conformance with Federal law or such law precludes the use of such
shares as an underlying investment medium for Contracts issued or
to be issued by the Company. Prompt notice shall be given by the
appropriate party should such situation occur.
6. CONTINUATION OF AGREEMENT.
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Termination as the result of any cause listed in Section 5 shall not
affect the Funds' obligation to furnish shares to Contracts then in force
for which such shares serve or may serve as the underlying medium unless
such further sale of Fund shares is prohibited by law or the SEC or other
regulatory body.
7. ADVERTISING MATERIALS; FILED DOCUMENTS.
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(a) Advertising and sales literature with respect to any Fund prepared
by the Company or its agents for use in marketing its Contracts
will be submitted to that Fund or its designee for review before
such material is submitted to any regulatory body for review. No
such material shall be used if the Fund or its designee reasonably
objects to such use in writing, transmitted by facsimile within
two business days after receipt of such material.
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(b) Each Fund will provide additional copies of its financials as soon
as available to the Company and at least one complete copy of all
registration statements, prospectuses, statements of additional
information, annual and semi-annual reports, proxy statements and
all amendments or supplements to any of the above that relate to
the Fund promptly after the filing of such document with the SEC
or other regulatory authorities. At the Adviser's request, the
Company will provide to the Adviser at least one complete copy of
all registration statements, prospectuses, statements of
additional information, annual and semi-annual reports, proxy
statements, and all amendments or supplements to any of the above
that relate to the Accounts promptly after the filing of such
document with the SEC or other regulatory authority.
(c) Each Fund or the Adviser will provide via Excel spreadsheet
diskette format or in electronic transmission to the Company at
least quarterly portfolio information necessary to update Fund
profiles within seven business days following the end of each
quarter.
8. PROXY VOTING.
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(a) The Company shall provide pass-through voting privileges on shares
of a Fund held by the separate accounts to all Contract owners.
(b) The Company will distribute to Contract owners all proxy material
furnished by any Fund and will vote shares of the Fund in
accordance with instructions received from such Contract owners.
The Company and its agents shall not oppose or interfere with the
solicitation of proxies for shares of a Fund held for such
Contract owners.
9. INDEMNIFICATION.
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(a) The Company agrees to indemnify and hold harmless each Fund and
the Adviser, and their directors, officers, employees, agents and
each person, if any, who controls any Fund or its Adviser within
the meaning of the Securities Act of 1933 (the "1933 Act") against
any losses, claims, damages or liabilities to which the Fund or
any such director, officer, employee, agent, or controlling person
may become subject, under the 1933 Act or otherwise, insofar as
such losses, claims, damages, or liabilities (or actions in
respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact
contained in the Registration Statement, prospectus or sales
literature of the Company 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, or arise out of or as a result of conduct,
statements or representations (other than statements or
representations contained in the prospectuses or sales literature
of the Fund) of the Company or its agents, with respect to the
sale and distribution of Contracts for which
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shares of the Fund are the underlying investment. The Company will
reimburse any legal or other expenses reasonably incurred by a
Fund or any such director, officer, employee, agent, investment
adviser, or controlling person in connection with investigating
or defending any such loss, claim, damage, liability or action;
PROVIDED, HOWEVER, that the Company will not be liable in
any such case to the extent that any such loss, claim, damage or
liability arises out of or is based upon (i) an untrue statement
or omission or alleged omission made in such Registration
Statement or prospectus in conformity with written materials
furnished to the Company by the Fund specifically for use therein
or (ii) the willful misfeasance, bad faith, or gross negligence by
the Fund or Adviser in the performance of their duties or the
Fund's or Adviser's reckless disregard of obligations or duties
under this Agreement or to the Company, whichever is applicable.
This indemnity agreement will be in addition to any liability
which the Company may otherwise have.
(b) Each Fund and the Adviser agree to indemnify and hold harmless the
Company and its directors, officers, employees, agents and each
person, if any, who controls the Company within the meaning of the
1933 Act against any losses, claims, damages or liabilities to
which the Company or any such director, officer, employee, agent
or controlling person may become subject, under the 1933 Act or
otherwise, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact
contained in the Registration Statement, prospectuses or sales
literature 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 material fact required to be
stated therein or necessary to make the statements therein not
misleading. Each Fund, as appropriate, will reimburse any legal or
other expenses reasonably incurred by the Company or any such
director, officer, employee, agent, or controlling person in
connection with investigating or defending any such loss, claim,
damage, liability or action; PROVIDED, HOWEVER, that the Fund will
not be liable in any such case to the extent that any such loss,
claim, damage or liability arises out of or is based upon an
untrue statement or omission or alleged omission made in such
Registration Statement or prospectuses which are in conformity
with written materials furnished to the Fund by the Company
specifically for use therein.
(c) Promptly after receipt by an indemnified party hereunder of notice
of the commencement of action, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying
party hereunder, notify the indemnifying party of the commencement
thereof; but the omission so to notify the indemnifying party will
not relieve it from any liability which it may have to any
indemnified party otherwise than under this Section 9. In case any
such action is brought against any indemnified party, and it
notifies the indemnifying party of the commencement thereof, the
indemnifying party will be entitled to participate therein and, to
the extent that it may wish to, assume the defense thereof, with
counsel satisfactory to such indemnified party, and after notice
from the indemnifying party to such indemnified party of its
election to assume the defense thereof, the indemnifying party
will not be liable to
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such indemnified party under this Section 9 for any legal
or other expenses subsequently incurred by such indemnified
party in connection with the defense thereof other than
reasonable costs of investigation.
10. MISCELLANEOUS.
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(a) AMENDMENT AND WAIVER. Neither this Agreement, nor any provision
hereof, may be amended, waived, discharged or terminated orally,
but only by an instrument in writing signed by all parties hereto.
(b) NOTICES. All notices and other communications hereunder shall be
given or made in writing and shall be delivered personally, or
sent by telex, facsimile or registered or certified mail, postage
prepaid, return receipt requested, or recognized overnight courier
service to the party or parties to whom they are directed at the
following addresses, or at such other addresses as may be
designated by notice from such party to all other parties.
To the Company: To the Adviser:
Golden American Life InsuranceCompany Aeltus Investment Management, Inc.
0000 Xxxxxxxx Xxxxx 00 Xxxxx Xxxxx Xxxxxx, XX00
Xxxx Xxxxxxx, XX 00000 Hartford, Connecticut 06103-3602
Attn: Attn: Chief Compliance Officer
To any Fund:
00 Xxxxx Xxxxx Xxxxxx, XX00
Xxxxxxxx, Xxxxxxxxxxx 00000-0000
Attn: President
Any notice, demand or other communication given in a manner prescribed in
this subsection (b) shall be deemed to have been delivered on receipt.
(c) SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective
permitted successors and assigns.
(d) COUNTERPARTS. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one
agreement, and any party hereto may execute this Agreement by
signing any such counterpart.
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(e) SEVERABILITY. In case any one or more of the provisions contained
in this Agreement should be invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not in any way be
affected or impaired thereby.
(f) ENTIRE AGREEMENT. This Agreement constitutes the entire agreements
and understanding between the parties hereto and supersedes all
prior agreement and understandings relating to the subject matter
hereof.
(g) GOVERNING LAW. This Agreement shall be governed and interpreted in
accordance with the laws of the State of Connecticut.
(h) NON-EXCLUSIVE AGREEMENT. It is understood by the parties that this
Agreement is not an exclusive arrangement in any respect.
(i) CONFIDENTIALITY. The terms of this Agreement and the Schedules
thereto will be held confidential by each party except to the
extent that either party or its counsel may deem it necessary to
disclose such terms.
IN WITNESS WHEREOF, the undersigned have executed this Agreement by their
duly authorized officers effective as of the day of,2001.
GOLDEN AMERICAN LIFE INSURANCE COMPANY
By:__________________________________________________
Name:________________________________________________
Title:_______________________________________________
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AETNA VARIABLE FUND
AETNA VARIABLE ENCORE FUND
AETNA INCOME SHARES
AETNA BALANCED VP, INC.
AETNA GET FUND
AETNA VARIABLE PORTFOLIOS, INC.
By:__________________________________________________
Name:________________________________________________
Title:_______________________________________________
AELTUS INVESTMENT MANAGEMENT, INC.
By:__________________________________________________
Name:________________________________________________
Title:
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SCHEDULE A
(For any future separate accounts - See Section 1)
SCHEDULE B
AETNA VARIABLE FUND
d/b/a Aetna Growth and Income VP
AETNA VARIABLE ENCORE FUND
d/b/a Aetna Money Market VP
AETNA INCOME SHARES
d/b/a/ Aetna Bond VP
AETNA BALANCED VP, INC.
AETNA GET FUND
Series N and all subsequent series
AETNA VARIABLE PORTFOLIOS, INC.
Aetna Growth VP
Aetna Small Company VP
Aetna Index Plus Large Cap VP
Aetna International VP
Aetna Technology VP
Aetna Value Opportunity VP
Aetna Index Plus Mid Cap VP
Aetna Index Plus Small Cap VP
