PARTICIPATION AGREEMENT
AMONG
TRUST FOR ADVISED PORTFOLIOS,
QUASAR DISTRIBUTORS, LLC
1919 INVESTMENT COUNSEL, LLC
AND
METLIFE INSURANCE COMPANY USA
THIS AGREEMENT, made and entered into this 7th day of November by and among
MetLife Insurance Company USA, a Delaware corporation (the "Company"), on its
own behalf and on behalf of each segregated asset account of the Company set
forth on Schedule A hereto, as may be amended from time to time (each such
account hereinafter referred to as the "Account"'), and the Trust for Advised
Portfolios (the "Trust"), a Delaware statutory trust on behalf of each series
listed on Schedule B (each a "Fund", collectively the "Funds"), Quasar
Distributors, LLC, a Delaware limited liability company (the "Distributor"), and
1919 Investment Counsel, LLC, a Delaware limited liability company (the
"Adviser").
WHEREAS, the Fund engages in business as an open-end management investment
company and is available to act as (i) the investment vehicle for separate
accounts established for variable life insurance policies and variable annuity
contracts (collectively, the "Contracts") to be offered by insurance companies
that have entered into participation agreements with the Fund, the Adviser and
the Distributor (each, a "Participating Insurance Company" and collectively, the
"Participating Insurance Companies"), and (ii) the investment vehicle for
certain qualified pension and retirement plans ("Qualified Plans") for which the
shares of the Fund are either held by Participating Insurance Companies on
behalf of the Qualified Plans through omnibus accounts or are held by Qualified
Plans without any financial intermediary through direct accounts on the books of
the Fund;
WHEREAS, the Trust has obtained an order from the Securities and Exchange
Commission (the "SEC"), granting the Participating Insurance Companies and
variable annuity and variable insurance
separate accounts exemptions from the provisions of Sections 9(a), 13(a), 15(a),
and 15(b) of the Investment Company Act of 1940, (the "1940 Act" which for the
purposes of this Agreement includes the rules and regulations thereunder, all as
amended from time to time, as may apply to a Fund, including pursuant to any
exemptive, interpretive or other relief or guidance issued by the Commission or
the staff of the Commission under such Act) and Rules 6e-2(b)(15) and
6e-3(T)(b)( 15) thereunder, to the extent necessary to permit shares of the Fund
to be sold to and held by variable annuity and variable life insurance separate
accounts of both affiliated and unaffiliated life insurance companies (the
"Mixed and Shared Funding Exemptive Order");
WHEREAS, the Fund is registered as an open-end management investment
company under the 1940 Act and its shares are registered under the Securities
Act of 1933, as amended (the "1933 Act");
WHEREAS, the Distributor is duly registered as a broker-dealer under the
Securities Exchange Act of 1934 (the "Exchange Act") and any applicable state
securities law;
WHEREAS, the Adviser is duly registered as an investment adviser under the
Investment Advisers Act of 1940, as amended;
WHEREAS, the Distributor is a distributor of shares of the Fund;
WHEREAS, the Company has registered or will register certain Contracts
under the 1933 Act, or such Contracts are or will be exempt from registration
thereunder;
WHEREAS, each Account is a duly organized, validly existing segregated
asset account, established by resolution of the Board of Directors of the
Company to set aside and invest assets attributable to one or more Contracts;
WHEREAS, each Account is or will be registered as an investment company
under the 1940 Act, or the Account is or will be exempt from registration under
the 1940 Act;
WHEREAS, to the extent permitted by applicable insurance laws and
regulations, the Company intends to purchase shares in the Fund on behalf of
each Account to fund certain of the aforesaid Contracts, and
2
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 Fund agrees to sell to the Company those shares of the Fund
which each Account orders, executing such orders on a daily basis at the net
asset value next computed after receipt by the Fund or its designee of the order
for Fund shares. For purposes of this Section 1.1, the Company shall be the
designee of the Fund for receipt of such orders from each Account and receipt by
such designee shall constitute receipt by the Fund, provided that: (i) the
orders are received by the Company (or their designee) in good order prior to
the time the net asset value of each Fund is priced in accordance with its
Prospectus/1/ (generally at the close of regular trading on the New York Stock
Exchange (the "NYSE") at 4:00 p.m. Eastern Time), and (ii) the Fund receives
notice of such order by 10:00 a.m. Eastern Time on the next following "Business
Day." "Business Day" shall mean any day on which the NYSE is open for regular
trading and on which the Fund calculates its net asset value pursuant to the
rules of the SEC.
1.2 The Fund agrees to make its shares available indefinitely for
purchase at the applicable net asset value per share by the Company and its
Accounts on those days on which the Fund calculates its net asset value, which
is calculated each day that the NYSE is open for trading. Notwithstanding the
foregoing, the Board of Trustees of the Trust (the "Board") may 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 any regulatory authority
having jurisdiction or is, in the sole discretion of the Board acting in good
faith and in light of their fiduciary duties under federal and any applicable
state laws, necessary in the best interest of the shareholders of such Fund.
--------
/1/ The term "Prospectus" as used herein, refers to the prospectus and related
statement of additional information (the "Statement of Additional
Information") incorporated therein by reference (each as amended or
supplemented) on file with the SEC at the time in question.
3
1.3 The Fund, the Adviser and the Distributor agree that shares of the
Fund will be sold only to Participating Insurance Companies and their separate
accounts and, in accordance with the terms of the Mixed and Shared Funding
Exemptive Order, certain Qualified Plans. No shares of a Fund will be sold to
the general public.
1.4 The Fund will not sell Fund shares to any insurance company or
separate account unless an agreement containing provisions substantially the
same as Articles I, III, V, VI and Section 2.5 of Article II of this Agreement
is in effect to govern such sales.
1.5 The Fund agrees to redeem for cash, on the Company's request, any
full or fractional shares of the Fund held by the Company, executing such
requests on a daily basis at the net asset value next computed after receipt by
the Fund or its designee of the request for redemption. For purposes of this
Section 1.5, the Company shall be the designee of the Fund for receipt of
requests for redemption from the Account and receipt by such designee shall
constitute receipt by the Fund, provided that: (i) the orders are received by
the Company (or its designee) in good order prior to the time the net asset
value of each Fund is priced in accordance with its Prospectus (generally at the
close of regular trading on the NYSE at 4:00 p.m. Eastern Time), and (ii)
provided that the Fund receives notice of such request for redemption by 10:00
a.m. Eastern Time on the next following "Business Day." The Fund may impose
redemption fees, as described in the Prospectus.
1.6 The Company agrees to purchase and redeem the shares of each Fund
offered by the then current Prospectus of the Fund and in accordance with the
provisions of such Prospectus. The Company agrees that all net amounts available
under the Contracts which are listed on Schedule A attached hereto and
incorporated herein by this reference, as such Schedule A may be amended from
time to time hereafter by mutual written agreement of all the parties hereto,
shall be invested in the Fund, in such other Funds selected by the Company or in
the Company's general account. The Company agrees to comply with the provisions
of Rule 22c-2 under the 1940 Act as applicable to the Fund (including reporting
procedures adopted to comply with the Rule).
4
1.7 The Company shall pay for Fund shares on the next "Business Day" after
an order to purchase Fund shares is made in accordance with the provisions of
Section 1.1 hereof. Payment shall be in federal funds transmitted by wire. For
purpose of Sections 2.9 and 2.10, upon receipt by the Fund of the federal funds
so wired, such funds shall cease to be the responsibility of the Company and
shall become the responsibility of the Fund.
1.8 Issuance and transfer of the Fund's shares will be by book entry only.
Stock certificates will not be issued to the Company or any Account. Shares
ordered from the Fund will be recorded in an appropriate title for each Account
or the appropriate subaccount of each Account.
1.9 The Fund shall furnish same day notice by wire, telephone (followed by
written confirmation), electronic media or fax to the Company of any income,
dividends or capital gain distributions payable on the Fund's shares. The
Company hereby elects to receive all such income dividends and capital gain
distributions as are payable on Portfolio shares in additional shares of the
applicable Portfolio. The Company reserves the right to revoke this election and
to receive all such income dividends and capital gain distributions in cash. The
Fund shall notify the Company of the number of shares so issued as payment of
such dividends and distributions.
1.10 The Fund shall provide (electronically or by fax) the closing net
asset value per share for each Portfolio to the Company on a daily basis as soon
as reasonably practical after the closing net asset value per share is
calculated (normally 6:30 p.m. Eastern Time) and shall use its best efforts to
make such net asset value per share available by 7:00 p.m. Eastern Time. In the
event that the Fund is unable to meet the 7:00 p.m. time stated immediately
above, then the Fund shall immediately notify the Company and provide the
Company with additional time to notify the Fund of purchase or redemption orders
pursuant to Sections 1.1 and 1.5, respectively, above. Such additional time
shall be equal to the additional time that the Fund takes to make the closing
net asset values available to the Company. If the Fund provides the Company with
the incorrect closing share net asset value information, the Company, on behalf
of the Account, shall be entitled to a prompt adjustment to the number of shares
purchased or redeemed to reflect the correct share net asset value, and the Fund
or the Distributor shall bear the cost of correcting such
5
errors. Upon a final determination that there has been an error in the
calculation of the closing net asset value, dividend or capital gain, the Fund
shall promptly report such error to the Company.
1.11 The Fund shall, upon request of the Company, provide a manual daily
confirmation of trade activity from the previous "Business Day." Such
confirmation shall include the dollar amount of purchases or redemptions
submitted by the Company for each Portfolio, price per share of each Portfolio,
and the corresponding total share amount of such purchase or redemption, and
shall be transmitted to the Company on the Business Day following the request.
1.12 The Fund shall, upon request of the Company, provide on a monthly
basis, a screen printed report of the monthly trade activity for the Account
which shall be transmitted to the Company on the "Business Day" following the
request.
ARTICLE II.
REPRESENTATIONS AND WARRANTIES
------------------------------
2.1 The Company represents and warrants that the Contracts are or will be
registered under the 1933 Act, unless exempt from such registration, and that
the Contracts will be issued and sold in compliance in all material respects
with all applicable Federal and State laws and regulations. The Company shall
amend the registration statements for its Contracts under the 1933 Act and 1940
Act from time to time as required to effect the continuous offering of its
Contracts. The Company 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 established each Account prior to any issuance or sale thereof as a
segregated asset account under their domiciliary state insurance laws and has
registered or, prior to any issuance or sale of the Contracts, will register
each Account as a unit investment trust in accordance with the provisions of the
1940 Act to serve as a segregated investment account for the Contracts, unless
exempt from such registration. The Company represents and warrants that the
Company and the Account are in compliance with Rule 38a-l under the 1940 Act
pursuant to the requirements of federal law or of any state insurance
department. The Company represents and warrants that it has implemented controls
designed to prevent, and will provide any reasonable assistance requested by the
Fund related to the
6
deterrence of, market timing and/or late trading of shares of the Fund. Further,
the Company represents and warrants that:
(a) The Company has in place an anti-money laundering program ("AML
program") that does now and will continue to comply with applicable laws and
regulations, including the relevant provisions of the Bank Secrecy Act and the
USA PATRIOT Act (Pub. L. No. 107-56 (2001)), as they may be amended, and the
regulations issued thereunder by duly vested regulatory authority and the Rules
of Conduct of the Financial Industry Regulatory Authority ("FINRA") ("Anti-Money
Laundering Law and Regulation").
(b) The Company has, after undertaking reasonable inquiry, no
information or knowledge that (i) any Contract owners of all separate accounts
investing in the Fund, or (ii) any person or entity controlling, controlled by
or under common control with such Contract owners is an individual or entity or
in a country or territory that is on an Office of Foreign Assets Control
("OFAC") list or similar list of sanctioned or prohibited persons maintained by
a U.S. governmental or regulatory body.
(c) The Company has in place policies, procedures and internal controls
reasonably designed (i) to verify the identity of Contract owners, and (ii) to
identify those Contract owners' sources of funds, and has no reason to believe
that any of the invested funds were derived from illegal activities.
(d) The Company will provide the Fund or the Distributor (or their
respective service providers) upon reasonable request any information regarding
specific accounts that may be reasonably necessary for the Fund and its service
providers to fulfill their responsibilities relating to their anti-money
laundering programs or any other information reasonably requested by the Fund or
the Distributor (or their respective service providers) to assist with
compliance with the Anti-Money Laundering Law and Regulation, as may be
permitted by law or regulation.
(e) The Company will promptly notify the Fund and the Distributor
should the Company become aware of any change in the above representations and
warranties to the extent that the change relates to the relationship between the
Company and the Fund and/or Distributor. In addition, the Fund and the
Distributor hereby provide notice to the Company that the Fund and/or the
Distributor
7
reserve the right to make inquires of and request additional information from
the Company regarding its AML program.
2.2 The Fund represents and warrants that Fund shares sold pursuant to this
Agreement shall be registered under the 1933 Act, duly authorized for issuance
and sold in compliance with the laws of the State of Delaware, as applicable,
and all applicable federal and state securities laws. Further, the Fund
represents and warrants that the Fund is in compliance with Rule 38a-1 under the
1940 Act. The Fund is and shall remain registered under the 0000 Xxx. The Fund
shall amend the registration statement for its shares under the 1933 Act and the
1940 Act from time to time as required in order to effect the continuous
offering of its shares. The Fund shall register and qualify the shares for sale
in accordance with the laws of all states. The Distributor or the Fund shall
provide to the Company a list of the various jurisdictions in which the
Portfolios are registered.
2.3 The Fund represents that it is currently qualified as a Regulated
Investment Company under Subchapter M of the Internal Revenue Code of 1986, as
amended, (the "Code") and that it will make every effort 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. The parties acknowledge that compliance with Subchapter M is an
essential element of compliance with Section 817(h) of the Code.
2.4 The Company represents that the Contracts are currently treated as
endowment, annuity or life insurance contracts, under applicable provisions of
the Code and that it will make every effort to maintain such treatment and that
it will notify the Funds 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.
2.5 The Company represents that either (i) the Company does not make the
Fund available as an investment vehicle for any clients of the Company (other
than through Contracts), or (ii) if the Company makes the Fund available as an
investment vehicle for any clients of the Company (other than through
Contracts), the Company has adopted commercially reasonable procedures
("Procedures for
8
Qualified Plan Clients") to ensure (A) such client is a "Qualified Pension Or
Retirement Plan" within the meaning of Revenue Ruling 94-62, as supplemented or
modified by Revenue Ruling 2007-58 and any successor guidance, (B) such client
provides written assurances initially and on a periodic basis that it is not
aware of any failure resulting in the loss of its tax-qualified status, and (C)
such client will notify the Company in the event of a loss of its tax-qualified
status and agrees to redeem its interest in the Fund within 90 days after such
notice. If the adoption of, or any change in, any applicable law or regulatory
guidance after the date hereof would require any changes or additions to such
procedures in order for such client to be treated as a Qualified Pension Or
Retirement Plan, the Company will take such reasonable steps in good faith as
may be reasonably necessary to facilitate compliance with Section 817(h) of the
Code and the Treasury regulations thereunder.
2.6 The Fund represents and warrants that it has adopted, or has caused to
be adopted, written procedures under which (i) financial intermediaries may only
make the Fund available to its Qualified Plan clients if any such financial
intermediary is a Participating Insurance Company, (ii) if any such
Participating Insurance Company requests that the Fund be made available as an
investment vehicle for its Qualified Plan clients (other than through
Contracts), such Participating Insurance Company will be required to represent
in writing that it has adopted Procedures for Qualified Plan Clients, and (iii)
shares of the Fund may only be held by Qualified Plans without a financial
intermediary through direct accounts on the books of the Fund if the Fund has
adopted Procedures for Qualified Plans.
2.7 The Funds represent and warrants that each Fund:
(i) qualifies as a look-through entity within the meaning of Treas.
Reg. section 1.817-5(f),
and
(ii) shall at all times invest money from the Contracts and conduct
its operations to ensure that: (a) the assets of the Fund are diversified
within the meaning of Treas. Reg. section 1.817-5(b), (b) the Contracts
shall be treated as variable contracts under the Code and the regulations
issued thereunder, and (c) no Contract owner shall be treated as the owner
of the assets of an Account solely due to the purchase of shares of a Fund
by an Account.
9
The Funds will notify the Company immediately upon having a reasonable
basis for believing that a Fund is in breach of the foregoing representation and
warranty or that a Fund might be in breach in the future. In addition, the Fund
will immediately take all steps necessary to cure any breach to achieve
compliance with the foregoing representations and warranties.
2.8 The Fund has adopted a Rule 12b-1 Plan under which it makes payments to
finance administrative, service, and distribution expenses with respect to
certain Portfolios. The Fund represents and warrants that its Board, a majority
of whom are not interested persons of the Fund, has approved such Rule 12b-l
Plan to finance administrative, service, and distribution expenses of the Fund's
Portfolios that are subject to a 12b-1 fee, and that any changes to the Fund's
Rule 12b-l Plan will be approved, in accordance with Rule 12b-l under the 0000
Xxx.
2.9 The Fund makes no representation as to whether any aspect of its
operations (including, but not limited to, fees, expenses and investment
policies) complies with the insurance laws or regulations of various states
except that the Fund represents that the Fund's investment policies, fees and
expenses are and shall at all times remain in compliance with the laws of its
state of domicile, and the Fund represents that its respective operations are
and shall at all times remain in material compliance with the laws of its state
of domicile, to the extent required to perform this Agreement.
2.10 The Distributor represents and warrants that the Distributor is and
shall remain duly registered in all material respects under all applicable
federal and state laws and regulations and that the Distributor shall perform
its obligations for the Fund in compliance in all material respects with the
laws of the State of Delaware, and any applicable state and federal laws and
regulations.
2.11 The Adviser represents and warrants that the Adviser is and shall
remain duly registered in all material respects under all applicable federal and
state laws and regulations and that the Adviser shall perform its obligations
for the Fund in compliance in all material respects with the laws of the State
of Delaware, and any applicable state and federal laws and regulations.
2.12 The Fund represents and warrants that its trustees, officers,
employees, and other individuals/entities dealing with the money and/or
securities of the Fund are and shall continue to be at all
10
times covered by a blanket fidelity bond or similar coverage for the benefit of
the Fund in an amount not less than the minimal coverage as required currently
by Rule 17g-l of the 1940 Act or related provisions as may be promulgated from
time to time. The aforesaid bond shall include coverage for larceny and
embezzlement and shall be issued by a reputable bonding company.
2.13 The Company represents and warrants that all of its directors,
officers, employees, investment advisers, and other individuals/entities dealing
with the money and/or securities of the Fund are and shall continue to be at all
times covered by a blanket fidelity bond or similar coverage in an amount not
less than the minimal coverage as required currently by entities subject to the
requirements of Rule 17g-l of the 1940 Act or related provisions as may be
promulgated from time to time. The aforesaid bond shall include coverage for
larceny and embezzlement and shall be issued by a reputable bonding company.
2.14 Each party to this Agreement will maintain all records required by
law, including records detailing the services it provides. Such records will be
preserved, maintained and made available to the extent required by law and in
accordance with the 1940 Act and the rules thereunder. Upon request by the Fund,
the Adviser or the Distributor, the Company agrees promptly to make copies or,
if required, originals of all records pertaining to the performance of services
under this Agreement available to the Fund, the Adviser or the Distributor, as
the case may be. The Fund agrees that the Company will have the right to
inspect, audit and copy all records pertaining to the performance of services
under this Agreement pursuant to the requirements of any state insurance
department. Each party also agrees promptly to notify the other parties if it
experiences any difficulty in maintaining the records in an accurate and
complete manner. This provision shall survive termination of the Agreement.
ARTICLE III.
PROSPECTUSES AND PROXY STATEMENTS; VOTING
-----------------------------------------
3.1 For prospective Contract owners, the Distributor shall provide the
Company (at the Company's expense) with as many copies of the Fund's current
Prospectus as the Company may reasonably request. If requested by the Company in
lieu thereof, the Fund shall provide such
11
documentation (including a final copy of the new Prospectus as set in type at
the Fund's expense - in lieu thereof, such final copy may be provided, if
requested by the Company, electronically or through camera ready film) and other
assistance as is reasonably necessary in order for the Company once each year
(or more frequently, if the Prospectus for the Fund is amended) to have the
prospectus for each Contract and the Fund's Prospectus printed together in one
document (such printing to be at the Company's expense).
3.2 The Fund's Prospectus shall state that the Statement of Additional
Information for the Fund is available from the Distributor (or in the Fund's
discretion, the Prospectus shall state that such Statement is available from the
Fund), and the Distributor (or the Fund), at its expense, shall print and
provide such Statement free of charge to the Company and to any owner of a
Contract or prospective owner who requests such Statement.
3.3 The Fund, at its expense, shall provide the Company with copies of its
proxy material, reports to shareholders, and other communications to
shareholders in such quantity as the Company shall reasonably require for
distributing to Contract owners.
3.4 If and to the extent required by the 1940 Act or other applicable law
the Company shall:
(a) assist the Fund in soliciting voting instructions from Contract
owners by providing the Fund with a mailing list of Contract owners;
(b) vote Fund shares in accordance with instructions received from
Contract owners;
and
(c) vote Fund shares for which no instructions have been received in the
same proportion as Fund shares of such Portfolio for which instructions have
been received. The Company reserves the right to vote Fund shares held in any
segregated asset account in its own right, to the extent permitted by law. Each
Participating Insurance Company shall be responsible for assuring that each of
its separate accounts participating in the Fund calculates voting privileges in
a manner consistent with this Section.
3.5 The Fund will comply with all provisions of the 1940 Act requiring
voting by shareholders
12
ARTICLE IV.
SALES MATERIAL AND INFORMATION
------------------------------
4.1 The Company shall furnish, or shall cause to be furnished, to the Fund
or its designee, each piece of sales literature or other promotional material in
which the Fund or its investment adviser or any of its underwriters is named, at
least fifteen (15) "Business Days" prior to its use. No such material shall be
used if the Fund or its designee objects to such use within fifteen (15)
"Business Days" after receipt of such material.
4.2 The Company shall not give any information or make any representations
or statements on behalf of the Fund or concerning the Fund in connection with
the sale of the Contracts other than the information or representations
contained in the registration statement or Prospectus for the Fund shares, 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 the Distributor
or the designee of either, except with the permission of the Fund or the
Distributor or the designee of either.
4.3 The Fund and the Distributor, or the designee of either shall furnish,
or shall cause to be furnished, to the Company or its designee, each piece of
sales literature or other promotional material in which the Company and/or its
Account(s), is named at least fifteen (15) "Business Days" prior to its use. No
such material shall be used if the Company or its designee objects to such use
within fifteen (15) "Business Days" after receipt of such material.
4.4 The Fund and the Distributor shall not give any information or make any
representations on behalf of the Company or concerning the Company, an Account,
or the Contracts other than the information or representations contained in a
registration statement or prospectus for the Contracts, as such registration
statement and prospectus may be amended or supplemented from time to time, or in
published reports for each Account which are in the public domain or approved by
the Company for distribution to Contract owners, or in sales literature or other
promotional material approved by the Company or its designee, except with the
permission of the Company.
13
4.5 Upon request, the Fund will provide to the Company at least one
complete copy of all registration statements, Prospectuses, Statements of
Additional Information, reports, proxy statements, sales literature and other
promotional materials, applications for exemptions, requests for no-action
letters, and all amendments to any of the above, that relate to the Fund or its
shares.
4.6 Upon request, the Company will provide to the Fund at least one
complete copy of all registration statements, prospectuses, Statements of
Additional Information, reports, solicitations for voting instructions, sales
literature and other promotional materials, applications for exemptions,
requests for no action letters, and all amendments to any of the above, that
relate to the Contracts or the Account.
4.7 For purposes of this Article IV, the phrase "sales literature or other
promotional material" includes, but is not limited to, advertisements (such as
materials published, or designed for use, in a newspaper, magazine, or other
periodical, radio, television, telephone or tape recording, videotape display,
signs or billboards, motion pictures, or other public media), sales literature,
(I.E., any written communication distributed or made generally available to
customers or the public, including brochures, circulars, research reports,
market letters, form letters, seminar texts, reprints or excerpts of any other
advertisement, sales literature, or published article), educational or training
materials or other communications distributed or made generally available to
some or all agents or employees, and registration statements, prospectuses,
statements of additional information, shareholder reports, and proxy materials
and any other material constituting sales literature or advertising under the
FINRA rules, the 1940 Act, the 1933 Act, or rules thereunder.
ARTICLE V.
FEES AND EXPENSES
-----------------
5.1 All expenses incident to performance by the Fund under this Agreement
shall be paid by the Fund. The Fund shall see to it that all its shares are
registered and authorized for issuance in accordance with applicable federal law
and, if and to the extent deemed advisable by the Fund, in accordance with
applicable state laws prior to their sale. The Fund shall bear the expenses for
the cost of registration and qualification of the Fund's shares, preparation and
filing of the Fund's Prospectus and
14
registration statement, proxy material, information statements and reports,
setting the Fund's Prospectus for printing, setting in type and printing the
proxy material, information statements and reports to shareholders, and the
preparation of all statements and notices required by any federal or state law.
The Fund shall bear the cost of printing and distributing the Fund's Prospectus,
periodic reports to shareholders, proxy materials and other shareholder
communications to existing Contract owners. The Company shall see to it that
each of the Contracts and the Accounts are registered and are authorized for
issuance in accordance with applicable federal law. The Company shall bear the
expenses for the cost of registration and qualification of the Contracts and the
Accounts, preparation and filing of the applicable prospectus and registration
statements, setting each Contract prospectus for printing, and the preparation
of all statements and notices required by any federal or state law. In addition,
the Company shall bear the cost of printing and distributing the Fund's
Prospectus to be delivered to prospective Contract owners.
5.2 Except as otherwise provided in Section 5.1, the Company shall bear the
expenses of printing and distributing the Fund's Prospectus to owners of
Contracts issued by the Company and of distributing the Fund's proxy materials
and reports to such Contract owners.
ARTICLE VI.
POTENTIAL CONFLICTS
-------------------
6.1 The Board will monitor the Fund for the existence of any material
irreconcilable conflict among the interests of the Contract owners of all
separate accounts investing in the Fund. An irreconcilable material conflict may
arise for a variety of reasons, including: (a) an action by any state insurance
regulatory authority; (b) a change in applicable federal or state insurance, tax
or securities laws or regulations, or a public ruling, private letter ruling,
no-action or interpretive letter, or any similar action by insurance, tax, or
securities regulatory authorities; (c) an administrative or judicial decision in
any relevant proceeding; (d) the manner in which the investments of any
Portfolio are being managed; (e) a difference in voting instructions given by
variable annuity contract owners and variable life insurance contract owners; or
(f) a decision by an insurer to disregard the voting instructions of Contract
owners.
15
The Board shall promptly inform the Company if they determine that an
irreconcilable material conflict exists and the implications thereof.
6.2 The Company will report any potential or existing conflicts of which it
is aware to the Board. The Company will assist the Board in carrying out its
responsibilities under the Mixed and Shared Funding Exemptive Order, by
providing the Board with all information reasonably necessary for the Board to
consider any issues raised. This includes, but is not limited to, an obligation
by the Company to inform the Board whenever Contract owners' voting instructions
are disregarded.
6.3 If it is determined by a majority of the Board, or a majority of its
disinterested trustees, that a material irreconcilable conflict exists, the
Company and other Participating Insurance Companies shall, at their expense and
to the extent reasonably practicable (as determined by a majority of the
disinterested directors), take whatever steps are necessary to remedy or
eliminate the irreconcilable material conflict, up to and including: (1)
withdrawing the assets allocable to some or all of the separate accounts from
the Fund or any Portfolio and reinvesting such assets in a different investment
medium, including (but not limited to) another Portfolio of the Fund, or
submitting the question whether such segregation should be implemented to a vote
of all affected Contract owners and, as appropriate, segregating the assets of
any appropriate group, (I.E., annuity Contract owners, life insurance Contract
owners, or Contract owners of one or more Participating Insurance Companies)
that votes in favor of such segregation, or offering to the affected contract
owners the option of making such a change; and (2) establishing a new registered
management investment company or managed separate account.
6.4 If a material irreconcilable conflict arises because of a decision by
the Company to disregard Contract owners' voting instructions and that decision
represents a minority position or would preclude a majority vote, the Company
may be required, at the Fund's election, to withdraw the affected Account's
investment in the Fund and terminate this Agreement with respect to such
Account; provided, however that such withdrawal and termination shall be limited
to the extent required by the foregoing material irreconcilable conflict as
determined by a majority of the disinterested members of the Board. Any such
withdrawal and termination must take place within six (6) months after the Fund
gives written
16
notice that this provision is being implemented, and until the end of that
six-month period the Fund and the Distributor shall continue to accept and
implement orders by the Company for the purchase (and redemption) of Fund
shares.
6.5 If a material irreconcilable conflict arises because a particular state
insurance regulator's decision applicable to the Company conflicts with the
majority of other state regulators, then the Company will withdraw the affected
Account's investment in the Fund and terminate this Agreement with respect to
such Account within six (6) months after the Board informs the Company in
writing that it has determined that such decision has created an irreconcilable
material conflict; provided, however, that such withdrawal and termination shall
be limited to the extent required by the foregoing material irreconcilable
conflict as determined by a majority of the disinterested members of the Board.
Until the end of the foregoing six-month period, the Fund and the Distributor
shall continue to accept and implement orders by the Company for the purchase
(and redemption) of Fund shares.
6.6 For purposes of Sections 6.3 through 6.6 of this Agreement, a majority
of the disinterested members of the Board shall determine whether any proposed
action adequately remedies any irreconcilable material conflict, but in no event
will the Fund be required to establish a new funding medium for the Contracts.
The Company shall not be required by Section 6.3 to establish a new funding
medium for the Contracts if an offer to do so has been declined by vote of a
majority of Contract owners materially adversely affected by the irreconcilable
material conflict. In the event that the Board determines that any proposed
action does not adequately remedy any irreconcilable material conflict, then the
Company will withdraw the Account's investment in the Fund and terminate this
Agreement within six (6) months after the Board informs the Company in writing
of the foregoing determination, provided, however, that such withdrawal and
termination shall be limited to the extent required by any such material
irreconcilable conflict as determined by a majority of the disinterested members
of the Board.
6.7 If and to the extent that Rule 6e-2 and Rule 6e-3(T) are amended, or
Rule 6e-3 is adopted, to provide exemptive relief from any provision of the Act
or the rules promulgated thereunder with respect to mixed or shared funding (as
defined in the Mixed and Shared Funding Exemptive Order) on terms and
17
conditions materially different from those contained in the Mixed and Shared
Funding Exemptive Order, then (a) the Fund and/or the Participating Insurance
Company, as appropriate, shall take such steps as may be necessary to comply
with Rules 6e-2 and 6e-3(T) as amended, and Rule 6e-3, as adopted, to the extent
such rules are applicable; and (b) Sections 6.1, 6.2, 6.3, 6.4 and 6.5 of this
Agreement shall continue in effect only to the extent that terms and conditions
substantially identical to such Sections are contained in such Rule(s) as so
amended or adopted.
ARTICLE VII.
INDEMNIFICATION
---------------
7.1 Indemnification by the Company
------------------------------
(a) The Company agrees to indemnify and hold harmless the Fund, the
Adviser and the Distributor and each of its directors, trustees and officers and
each person, if any, who controls the Fund within the meaning of Section 15 of
the 1933 Act (collectively, the "Indemnified Parties" for purposes of this
Section 7.1) against any and all losses, claims, damages, liabilities (including
amounts paid in settlement with the written consent of the Company, which
consent will not be unreasonably withheld) or litigation (including legal and
other expenses), to which the Indemnified Parties may become subject under any
statute, regulation, at common law or otherwise, insofar as such losses, claims,
damages, liabilities or expenses (or actions in respect thereof) or settlements
are related to the sale or acquisition of the Fund's shares or the Contracts
and:
(i) arise out of or are based upon any untrue statements or alleged
untrue statements of any material fact contained in the registration statement
or prospectus for the Contracts or contained in the Contracts or sales
literature for the Contracts (or any amendment or supplement to any of the
foregoing), or arise out of or are based upon the omission or the alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, provided that this
agreement to indemnify shall not apply as to any Indemnified Party if such
statement or omission or such alleged statement or omission was made in reliance
upon and in conformity with information furnished to the Company by or on behalf
of the Fund, the Adviser or the Distributor for use
18
in the registration statement or prospectus for the Contracts 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
(ii) arise out of or as a result of statements or representations
(other than statements or representations contained in the registration
statement, Prospectus or sales literature of the Fund not supplied by the
Company, or persons under their control) or wrongful conduct of the Company or
persons under their control, with respect to the sale or distribution of the
Contracts or Fund Shares; or
(iii) arise out of any untrue statement or alleged untrue statement
of a material fact contained in the registration statement, Prospectus, or sales
literature 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 if
such a statement or omission was made in reliance upon information furnished to
the Fund by or on behalf of the Company; or
(iv) arise as a result of any failure by the Company to provide the
services and furnish the materials under the terms of this Agreement; or
(v) arise out of or result from any material breach of any
representation and/or warranty made by the Company in this Agreement or arise
out of or result from any other material breach of this Agreement by the
Company, as limited by and in accordance with the provisions of Sections 7.1(b)
and 7.1(c) hereof.
(b) The Company shall not be liable under this indemnification
provision with respect to any losses, claims, damages, liabilities or litigation
incurred or assessed against an Indemnified Party as such may arise from such
Indemnified Party's willful misfeasance, bad faith, or gross negligence in the
performance of such Indemnified Party's duties or by reason of such Indemnified
Party's reckless disregard of obligations or duties under this Agreement or to
the Fund, whichever is applicable.
(c) The Company shall not be liable under this indemnification
provision with respect to any claim made against an Indemnified Party unless
such Indemnified Party shall have notified the Company in writing within a
reasonable time after the summons or other first legal process giving
19
information of the nature of the claim shall have been served upon such
Indemnified Party (or after such Indemnified Party shall have received notice of
such service on any designated agent), but failure to notify the Company of any
such claim shall not relieve the Company from any liability which it may have to
the Indemnified Party against whom such action is brought otherwise than on
account of this indemnification provision. In case any such action is brought
against the Indemnified Parties, the Company shall be entitled to participate,
at its own expense, in the defense of such action. The Company also shall be
entitled to assume the defense thereof, with counsel satisfactory to the party
named in the action. After notice from the Company to such party of the
Company's election to assume the defense thereof, the Indemnified Party shall
bear the fees and expenses of any additional counsel retained by it, and the
Company will not be liable to such party under this Agreement for any legal or
other expenses subsequently incurred by such party independently in connection
with the defense thereof other than reasonable costs of investigation.
(d) The Indemnified Parties will promptly notify the Company of the
commencement of any litigation or proceedings against them in connection with
the issuance or sale of the Fund Shares or the Contracts or the operations of
the Fund.
7.2 Indemnification by the Fund, the Adviser and the Distributor
------------------------------------------------------------
(a) The Fund, the Adviser and the Distributor agree to indemnify and
hold harmless the Company and its directors, employees and officers and each
person, if any, who controls the Company within the meaning of Section 15 of the
1933 Act (collectively, the "Indemnified Parties" for purposes of this Section
7.2) against any and all losses, claims, damages, liabilities (including amounts
paid in settlement with the written consent of the Fund, which consent shall not
be unreasonably withheld) or litigation (including legal and other expenses) to
which the Indemnified Parties may become subject under any statute, at common
law or otherwise, insofar as such losses, claims, damages, liabilities or
expenses (or actions in respect thereof) or settlements are related to the sale
or acquisition of the Fund's shares or the Contracts and:
20
(i) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in the registration
statement or Prospectus or sales literature of the Fund (or any amendment or
supplement to any of the foregoing), or arise out of or are based upon the
omission or the alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading,
provided that this agreement to indemnify shall not apply as to any Indemnified
Party if such statement or omission or such alleged statement or omission was
made in reliance upon and in conformity with information furnished to the
Distributor, Adviser or Fund by or on behalf of the Company for use in the
registration statement or Prospectus for the Fund or in sales literature
(or any amendment or supplement) or otherwise for use in connection with the
sale of the Contracts or Fund shares; or
(ii) arise out of or as a result of statements or representations
(other than statements or representations contained in the registration
statement, prospectus or sales literature for the Contracts not supplied by the
Distributor or Fund or persons under its control) or wrongful conduct of the
Fund, the Adviser or the Distributor or persons under their control, with
respect to the sale or distribution of the Contracts or Fund shares; or
(iii) arise out of any untrue statement or alleged untrue statement
of a material fact contained in a registration statement, prospectus or sales
literature covering the Contracts, 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 statement or statements
therein not misleading, if such statement or omission was made in reliance upon
information furnished to the Company by or on behalf of the Fund; or
(iv) arise as a result of any failure by the Fund, the Adviser or
Distributor to provide the services and furnish the materials under the terms of
this Agreement (including a failure, whether unintentional or in good faith or
otherwise, to comply with the diversification requirements specified in Article
II of this Agreement or the failure of the Fund to qualify under subchapter M as
a Regulated Investment Company); or
21
(v) arise out of or result from any material breach of any
representation and/or warranty made by the Fund, the Adviser or the Distributor
in this Agreement or arise out of or result from any other material breach of
this Agreement by the Fund, the Adviser or the Distributor, as limited by and in
accordance with the provisions of Sections 7.2(b) and 7.2(c) hereof.
(b) The Fund, the Adviser or the Distributor shall not be liable under
this indemnification provision with respect to any losses, claims, damages,
liabilities or litigation to which an Indemnified Party would otherwise be
subject by reason of such Indemnified Party's willful misfeasance, bad faith, or
gross negligence in the performance of such Indemnified Party's duties or by
reason of such Indemnified Party's reckless disregard of obligations and duties
under this Agreement or to the Company or Account, whichever is applicable.
(c) The Fund, the Adviser and the Distributor shall not be liable under
this indemnification provision with respect to any claim made against an
Indemnified Party unless such Indemnified Party shall have notified the Fund,
the Adviser and the Distributor in writing within a reasonable time after the
summons or other first legal process giving information of the nature of the
claim shall have been served upon such Indemnified Party (or after such
Indemnified Party shall have received notice of such service on any designated
agent), but failure to notify the Fund, the Adviser and the Distributor of any
such claim shall not relieve the Fund, the Adviser and the Distributor from any
liability which they may have to the Indemnified Party against whom such action
is brought otherwise than on account of this indemnification provision. In case
any such action is brought against the Indemnified Parties, the Fund, the
Adviser and the Distributor will be entitled to participate, at their own
expense, in the defense thereof. The Fund, the Adviser and the Distributor also
shall be entitled to assume the defense thereof with counsel satisfactory to the
party named in the action. After notice from the Fund, the Adviser and the
Distributor to such party of the Fund's, the Adviser's and the Distributor's
election to assume the defense thereof, the Indemnified Party shall bear the
fees and expenses of any additional counsel retained by it, and the Fund, the
Adviser and the Distributor will not be liable to such party under this
Agreement
22
for any legal or other expenses subsequently incurred by such party
independently in connection with the defense thereof other than reasonable costs
of investigation.
(d) The Company agrees promptly to notify the Fund, the Adviser and
the Distributor of the commencement of any litigation or proceedings against it
or any of its officers or directors in connection with the issuance or sale of
the Contracts or the operation of the Account.
ARTICLE VIII.
APPLICABLE LAW
--------------
8.1 This Agreement shall be construed and the provisions hereof interpreted
under and in accordance with the laws of Delaware.
8.2 This Agreement shall be subject to the provisions of the federal
securities laws, and the rules, regulations and rulings thereunder, including
such exemptions from those statutes, rules and regulations as the SEC may grant
(including, but not limited to, the Mixed and Shared Funding Exemptive Order)
and the terms hereof shall be interpreted and construed in accordance therewith.
ARTICLE IX.
TERMINATION
-----------
9.1 This Agreement shall terminate:
(a) at the option of any party upon six months advance written notice
to the other parties unless otherwise agreed in a separate written agreement
among the parties; or
(b) at the option of the Company if shares of the Portfolios delineated
in Schedule B are not reasonably available to meet the requirements of the
Contracts as determined by the Company; or
(c) at the option of the Fund upon institution of formal proceedings
against the Company by the FINRA, the SEC, the insurance commission of any state
or any other regulatory body regarding the Company's duties under this Agreement
that would have a material adverse impact on the sale of the Contracts, the
administration of the Contracts, the operation of an Account, or the purchase of
Fund shares; or
23
(d) at the option of the Company upon institution of formal proceedings
against the Fund by the FINRA, the SEC, or any state securities or insurance
department or any other regulatory body that would have a material adverse
impact on the Fund; or
(e) at the option of the Company upon receipt of any necessary
regulatory approvals and/or the vote of the Contract owners having an interest
in the Account (or any subaccount) to substitute the shares of another
investment company for the corresponding Portfolio shares of the Fund in
accordance with the terms of the Contracts for which those Portfolio shares had
been selected to serve as the underlying investment media. The Company will give
thirty (30) days' prior written notice to the Fund of the date of any proposed
vote or other action taken to replace the Fund's shares; or
(f) at the option of the Company or the Fund upon a determination by a
majority of the Fund Board, or a majority of the disinterested Fund Board
members, that an irreconcilable material conflict exists among the interests of
(i) all Contract owners of Contracts of all separate accounts, or (ii) the
interests of the Participating Insurance Company investing in the Fund as
delineated in Article VI of this Agreement; or
(g) 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 that the
Fund may fail to so qualify; or
(h) at the option of the Company if the Fund fails to meet the
diversification requirements specified in Article II hereof or the Company has a
reasonable expectation that the Fund will fail to meet these diversification
requirements in the future; or
(i) at the option of any party to this Agreement, upon another party's
material breach of any provision of this Agreement; or
(j) at the option of the Company, if the Company determines in its
sole judgment exercised in good faith, that either the Fund, the Adviser or the
Distributor has suffered a material adverse change in its business, operations
or financial condition since the date of this Agreement or is the subject
24
of material adverse publicity which is likely to have a material adverse impact
upon the business and operations of the Company; or
(k) at the option of the Fund, the Adviser or the Distributor, if the
Fund, the Adviser or the Distributor respectively, shall determine in its sole
judgment exercised in good faith, that the Company has suffered a material
adverse change in its business, operations or financial condition since the date
of this Agreement or is the subject of material adverse publicity which is
likely to have a material adverse impact upon the business and operations of the
Fund, the Adviser or the Distributor, or
(l) at the option of the Fund in the event any of the Contracts are not
issued or sold in accordance with applicable federal and/or state law.
Termination shall be effective immediately upon such occurrence without
notice.
9.2 Notice Requirement
------------------
(a) In the event that any termination of this Agreement is based upon
the provisions of Article VI, such prior written notice shall be given in
advance of the effective date of termination as required by such provisions.
(b) In the event that any termination of this Agreement is based upon
the provisions of Sections 9.1(b) - (d) or 9.1(g) - (i), prompt written notice
of the election to terminate this Agreement for cause shall be furnished by the
party terminating the Agreement to the non-terminating parties, with said
termination to be effective upon receipt of such notice by the non-terminating
parties.
(c) In the event that any termination of this Agreement is based upon
the provisions of Sections 9.1(i) or 9.1(k), prior written notice of the
election to terminate this Agreement for cause shall be furnished by the party
terminating this Agreement to the non-terminating parties. Such prior written
notice shall be given by the party terminating this Agreement to the
non-terminating parties at least thirty (30) days before the effective date of
termination.
9.3 No Reason Required for Termination. It is understood and agreed
----------------------------------
that the right to terminate this Agreement pursuant to Section 9.1 (a) may be
exercised for any reason or for no reason.
25
9.4 Effect of Termination
---------------------
(a) Notwithstanding any termination pursuant to Section 9.1 of this
Agreement, the Fund may, at its option, or in the event of termination of this
Agreement by the Fund, the Adviser or the Distributor pursuant to Section 9.1
(a) of this Agreement, the Company may require the Fund, the Adviser and the
Distributor to continue to make available additional shares of the Fund for so
long after the termination of this Agreement as the Fund or the Company, if the
Company so requires, 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 Fund so elects
to make available additional shares of the Fund, the owners of the Existing
Contracts 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. The parties agree that this
Section 9.4 shall not apply to any terminations under Article VI and the effect
of such Article VI terminations shall be governed by Article VI of this
Agreement.
(b) In the event of a termination pursuant to Section 9.1 of this
Agreement, the Fund shall promptly notify the Company whether the Fund will
continue to make available shares of the Fund after such termination, except
that, with respect to a termination by the Fund, the Adviser or the Distributor
pursuant to Section 9.1 (a) of this Agreement, the Company shall promptly notify
the Fund whether it wishes the Fund to continue to make available additional
shares of the Fund. If shares of the Fund continue to be made available after
such termination, the provisions of this Agreement shall remain in effect except
for Section 9.1 (a) and thereafter the Fund or the Company may terminate the
Agreement, as so continued pursuant to this Section 9.4 upon written notice to
the other party, such notice to be for a period that is reasonable under the
circumstances.
(c) In the event of termination purusant to Section 9.1(l), or such
laws preclude the use of such shares as the underlying investment medium for the
Contracts issued or to be issued by the Company, and if through no fault of the
Company, the need for substitution of Fund shares for the shares
26
of another "registered investment company" arises out of this event, the
expenses of obtaining such an order shall be reimbursed by the Fund. The Fund,
the Adviser and the Distributor shall cooperate fully with the Company in
connection with such application.
9.5 Surviving Provisions. Each party's obligations under Section 2.11
--------------------
and Article VII will survive and will not be affected by any termination of this
Agreement. In addition, with respect to Existing Contracts, all provisions of
this Agreement also will survive and not be affected by any termination of this
Agreement.
ARTICLE X.
NOTICES
-------
Any notice shall be sufficiently given when sent by registered or certified
mail to the other party at the address of such party set forth below or at such
other address as such party may from time to time specify in writing to the
other party.
If to the Fund:
000 Xxxx Xxxxxxxx Xxxxxx, 0xx xxxxx
Xxxxxxxxx, Xxxxxxxxx 00000
If to the Company:
MetLife
Xxx Xxxxxxxxx Xxxxxx, 00xx Xxxxx
Xxxxxx, XX 00000
Attn: Law Department
If to the Distributor:
Quasar Distributors, LLC
000 Xxxx Xxxxxxxx Xxxxxx
Xxxxxxxxx, Xxxxxxxxx 00000
If to the Adviser:
1919 Investment Counsel, LLC
000 Xxxxxxxxxxxxx Xxxxx, 0xx Xxxxx
Xxxxxxxxx, XX 00000
27
ARTICLE XI.
MISCELLANEOUS
-------------
11.1 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.
11.2 This Agreement may be executed simultaneously in two or more
counterparts, each of which taken together shall constitute one and the same
instrument.
11.3 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.
11.4 Each party hereto shall cooperate with each other party and all
appropriate governmental authorities (including without limitation the SEC, the
FINRA 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.
11.5 The rights, remedies and obligations contained in this Agreement are
cumulative and are in addition to any and all rights, remedies and obligations,
at law or in equity, which the parties hereto are entitled to under state and
federal laws.
11.6 Except as provided in Sections 12.4 and 12.7 of this Agreement, each
party will keep confidential any information acquired as a result of this
Agreement regarding the business and affairs of the other parties to this
Agreement and their affiliates.
11.7 Subject to the requirements of legal process and regulatory authority,
each party hereto shall treat as confidential the names and address of owners of
the Contracts and all information reasonably identified as confidential in
writing by any other party hereto and, except as permitted by this Agreement in
order to carry out the specified purposes specified herein, shall not disclose,
disseminate or utilize such names and addresses and other confidential
information until such time as it may come into public domain without express
written consent of the affected party. In addition, each party shall adopt
policies and procedures that address administrative, technical and physical
safeguards for the protection of such customer records.
28
11.8 Each party will comply with all applicable laws and regulations aimed
at preventing, detecting, and reporting money laundering and suspicious
transactions. To the extent required by applicable regulation and generally
accepted industry practices, each party shall take all necessary and appropriate
steps to: (i) obtain, verify, and retain information with regard to contract
owner identification, and (ii) maintain records of all contract owner
transactions. The Company will (but only to the extent consistent with
applicable law) take all steps necessary and appropriate to provide the Fund
with any requested information about Contract owners and their accounts in the
event that the Fund shall request such information due to an inquiry or
investigation by any law enforcement, regulatory, or administrative authority.
To the extent permitted by applicable law and regulations, the Company will
notify the Fund of any concerns that the Company may have in connection with any
Contract owners in the context of relevant anti-money laundering laws or
regulations.
11.9 The Fund agrees to consult with the Company concerning whether any
Portfolio of the Fund qualifies to provide a foreign tax credit pursuant to
Section 853 of the Code.
11.10 The Fund, Distributor and Advisor will use reasonable best efforts to
prevent the Fund from engaging, directly or indirectly, in a transaction that,
as of the date the Fund enters into a binding contract to engage in such
transaction, is a "listed transaction" as defined in Treas. Regs. Sec. 1.6011-
4(b)(2) or successor provision (a "Listed Transaction"). If the Fund
Distributor or Advisor reasonably determines that the Fund has engaged in a
Listed Transaction, it will (i) provide the Company with prompt notice thereof
and (ii) with respect to any such transaction, the Fund will provide the
Company, upon the Company's request, (A) with all information relating to such
Listed Transaction which the Company would need in order to comply with its
disclosure obligations under the Code and applicable regulations and state laws.
In addition, the Fund will promptly notify the Company if the Fund must file (or
has filed) Form 8886 ("Reportable Transaction Disclosure Statement"), or
successor form.
29
IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to
be executed in its name and on its behalf by its duly authorized representative
and its seal to be hereunder affixed hereto as of the date specified below.
Company:
METLIFE INSURANCE COMPANY USA*
By its authorized officer:
By: /s/ Xxxxx X. Xxxxxxx
-----------------------------
Name: Xxxxx X. Xxxxxxx
Title: Vice President
Date: 11/6/14
Trust on behalf of Fund(s) listed on Schedule B:
TRUST FOR ADVISED PORTFOLIOS
By its authorized officer:
By: /s/ Xxxxxxxxxxx X. Xxxxxxxxxx
-----------------------------
Name: Xxxxxxxxxxx X. Xxxxxxxxxx
Title: President
Date: 12/30/14
Adviser:
1919 INVESTMENT COUNSEL, LLC
By its authorized officer:
By: /s/ Xxxxx Xxxxxxxxx
-----------------------------
Name: Xxxxx Xxxxxxxxx
Title: Director of Operations
Date: 12/22/14
Distributor:
QUASAR FUND SERVICES
By: /s/ Xxxxx X. Xxxxxxxxx
------------------------------
Name: Xxxxx X. Xxxxxxxxx
Title: President
Date: 11/17/14
30
*The Company is currently known as MetLife Insurance Company of Connecticut. Its
name will change to MetLife Insurance Company USA and its state of domicile will
change from Connecticut to Delaware following the close of business on
November 14, 2014.
31
SCHEDULE A
----------
SEPARATE ACCOUNTS AND ASSOCIATED PRODUCTS
-----------------------------------------
SEPARATE ACCOUNTS PRODUCTS/CONTRACTS
----------------- ------------------
VARIABLE ANNUITY SEPARATE ACCOUNTS
MetLife of CT Separate Account Eleven for Variable Annuities Gold Track
Gold Track Select
Gold Track Select - NY Plans
MetLife Access
MetLife Retirement Account
Portfolio Architect
Portfolio Architect II
Portfolio Architect 3
Portfolio Architect Access
Portfolio Architect L
Portfolio Architect Plus
Portfolio Architect XTRA
PrimElite
PrimElite II
Universal Annuity
Universal Annuity Advantage
Universal Select
MetLife of CT Separate Account QPN for Variable Annuities Blue Print I
Blue Print II
MetLife Retirement Perspectives
Prime Builder I
Prime Builder II
Unallocated Group Variable Annuity
Unregistered Gold Track
Unregistered Gold Track Express
Unregistred Gold Track - VSP
MetLife Investors USA Separate Account A* PrimElite III
VARIABLE LIFE SEPARATE ACCOUNTS
MetLife of CT Fund UL III for Variable Life Insurance COLI
COLI 2000
COLI III
COLI IV
Corporate Select
MetLife of CT Separate Account CPPVULI COLI PPVL
*MetLife Investors USA Separate Account A will become a separate account of the
Company following the close of business on November 14, 2014.
32
SCHEDULE B
----------
PORTFOLIOS AVAILABLE UNDER THE CONTRACTS
----------------------------------------
TRUST NAME CURRENT FUND NAME/NEW FUND NAME CUSIP/CLASS
---------- ------------------------------- -----------
Trust for Advised Portfolios 1919 Variable Socially Responsive Balanced Fund 00000X000
33
