Exhibit (h)(28)
FUND PARTICIPATION AGREEMENT
THIS AGREEMENT, made as of June 5, 2007, by and between LINCOLN VARIABLE
INSURANCE PRODUCTS TRUST, a Delaware statutory trust ("Trust"), on its behalf
and on behalf of its investment series set forth in Exhibit A (each, a "Fund"),
LINCOLN FINANCIAL DISTRIBUTORS, INC., a Connecticut corporation ("Distributor"),
LINCOLN INVESTMENT ADVISORS CORPORATION, a Tennessee corporation ("Adviser"),
and NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION ("Life Company"), a life
insurance company organized under the laws of the State of Delaware.
WHEREAS, the Trust is registered with the Securities and Exchange
Commission ("SEC") under the Investment Company Act of 1940 ("1940 Act") as an
open-end, diversified management investment company;
WHEREAS, the Trust is organized as a series fund comprised of separate
investment, series, including each Fund;
WHEREAS, the Trust was organized to act as the funding vehicle for certain
variable life insurance and/or variable annuity contracts offered by life
insurance companies through separate accounts of such life insurance companies
and also may offer its shares to certain qualified pension and retirement plans;
WHEREAS, the Trust operates under an order from the SEC, dated June 4, 2007
(File No. 812-13287) ("Order"), granting relief from various provisions of the
1940 Act and the rules thereunder to the extent necessary to permit Fund shares
to be sold to and held by variable annuity and variable life insurance separate
accounts of both affiliated and unaffiliated participating insurance companies
accounts ("Participating Insurance Companies") and qualified pension and
retirement plans outside the separate account context and any other trust, plan,
account, contract or annuity trust that is within the scope of Treasury
Regulation Section 1.817.5(f)(3)(iii) (collectively, the "Plans");
WHEREAS, the Life Company has established or will establish one or more
separate accounts ("Separate Accounts") to offer variable life insurance
policies or variable annuity contracts ("Variable Contracts"), set forth on
Exhibit B, as may be amended from time to time by mutual agreement, and it seeks
to have each Fund serve as certain of the underlying funding vehicles for such
Variable Contracts;
WHEREAS, the Adviser is registered with the SEC as an investment adviser
under the Investment Advisers Act of 1940 and serves as the investment adviser
to the Funds;
WHEREAS, the Distributor is duly registered as a broker-dealer under the
Securities Exchange Act of 1934 (the "1934 Act") and is a member in good
standing of the National Association of Securities Dealers, Inc. (the "NASD")
and serves as the principal underwriter of the shares of the Funds; and
WHEREAS, to the extent permitted by applicable insurance laws and
regulations, the Life Company intends to purchase Fund shares to serve as
investment options under the Variable
Contracts and each Fund is authorized to sell such shares to the Life Company at
net asset value ("NAV").
NOW, THEREFORE, in consideration of their mutual promises, the Life
Company, the Trust, the Distributor, and the Adviser agree as follows:
Article I. SALE OF FUND SHARES
1.1. The Trust agrees to make available to the Separate Accounts shares of
each Fund as listed in Exhibit B for investment of proceeds from Variable
Contracts allocated to the designated Separate Accounts, such shares to be
offered as provided in Fund's Prospectus.
1.2. The Trust agrees to sell to the Life Company those Fund shares that
the Life Company orders, executing such orders on a daily basis at the NAV next
computed after receipt by the Trust or its designee of the order. For purposes
of this Section, the Life Company shall be the designee of the Trust for receipt
of such orders from the Life Company and receipt by such designee shall
constitute receipt by the Trust; provided that the Trust receives notice of such
order by 8:30 a.m. New York time on the next following Business Day. "Business
Day" shall mean any day on which the New York Stock Exchange is open for trading
and on which the Fund calculates its NAV.
1.3. The Trust agrees to redeem for cash, on the Life Company's request,
any full or fractional Fund shares held by the Life Company, executing such
requests on a daily basis at the NAV next computed after receipt by the Trust or
its designee of the request for redemption. For purposes of this Section, the
Life Company shall be the designee of the Trust for receipt of requests for
redemption from the Life Company and receipt by such designee shall constitute
receipt by the Trust; provided that the Trust receives notice of such request
for redemption by 8:30 a.m. New York time on the next following Business Day.
1.4. The Trust shall furnish, on or before the ex-dividend date, notice to
the Life Company of any income dividends or capital gain distributions payable
on the shares of any Fund. The Life Company hereby elects to receive all such
income dividends and capital gain distributions as are payable on a Fund's
shares in additional shares of the Fund. The Trust shall notify the Life Company
of the number of shares so issued as payment of such dividends and
distributions. The Life Company reserves the right to revoke this election by
written notice to the Trust.
1.5. The Trust shall make the NAV per share for the selected Fund(s)
available to the Life Company on a daily basis as soon as reasonably practicable
after the NAV per share is calculated but shall use its best efforts to make
such NAV available by 6:30 p.m. New York time. In the event of an error in the
computation of a Fund's NAV or any dividend or capital gain distribution (each,
a "pricing error"), the Distributor or the Fund shall promptly notify the Life
Company as soon as possible after discovery of the error. Such notification may
be verbal, but shall be confirmed promptly in writing. A pricing error shall be
corrected in accordance with the Fund's policy for correction of pricing errors
("Pricing Policy"); provided such Pricing Policy meets the requirements of the
1940 Act and any views expressed by the SEC staff. If an adjustment is necessary
to correct a material error which has caused Variable Contract owners to
-2-
receive less than the amount to which they are entitled, the number of shares of
the applicable sub-account of such Variable Contract owners will be adjusted and
the amount of any underpayments shall be credited by the Distributor to the Life
Company for crediting of such amounts to the applicable Variable Contract owners
accounts. Upon notification by the Distributor of any overpayment due to a
material error, the Life Company shall promptly remit to the Distributor any
overpayment that has not been paid to the Variable Contract owners. A pricing
error shall be deemed to be "materially incorrect" or constitute a "material
error" in accordance with the Fund's Pricing Policy for purposes of this
Agreement. The standards set forth in this Section are based on the parties'
understanding of the views expressed by the staff of the SEC as of the date of
this Agreement. In the event the views of the SEC staff are later modified or
superseded by SEC or judicial interpretation, the parties shall amend the
foregoing provisions of this Agreement to comport with the appropriate
applicable standards, on terms mutually satisfactory to all parties.
1.6. At the end of each Business Day, the Life Company shall use the
information described in Section 1.5 to calculate Separate Account unit values
for the day. Using these unit values, the Life Company shall process each such
Business Day's Separate Account transactions based on requests and premiums
received by it by the time as of which the Fund calculates its share price as
disclosed in the Fund's prospectus to determine the net dollar amount of the
Fund shares which shall be purchased or redeemed at that day's closing NAV per
share. The net share purchase or redemption orders so determined shall be
transmitted to the Trust by the Life Company by 8:30 a.m. New York Time on the
Business Day next following the Life Company's receipt of such requests and
premiums.
1.7. If the Life Company's order requests the net purchase of the Trust
shares, the Life Company shall pay for such purchase by wiring federal funds to
the Trust or its designated custodial account on the day the order is actually
transmitted by the Life Company by 3:00 p.m. New York time. If the Life
Company's order requests a net redemption resulting in a payment of redemption
proceeds to the Life Company, the Trust shall wire the redemption proceeds to
the Life Company on the day the order is actually received by the Trust by 3:00
p.m. New York time. If the Life Company's order requests the application of
redemption proceeds from the redemption of shares to the purchase of shares of
another fund administered or distributed by the Distributor, the Trust shall so
apply such proceeds on the same Business Day that the Life Company transmits
such order to the Trust. The Life Company shall notify the Distributor at least
five days in advance of a single purchase, redemption or exchange order for one
million dollars ($1,000,000) or more of which it has prior knowledge.
1.8 Notwithstanding Section 1.7, the Trust reserves the right to suspend
the right of redemption or postpone the date of payment or satisfaction upon
redemption consistent with Section 22(e) of the 1940 Act and any rules
thereunder.
1.9 The Trust agrees that all Fund shares will be sold only to
Participating Insurance Companies which have agreed to purchase Fund shares to
fund their Separate Accounts and/or to certain qualified pension and other
retirement plans, all in accordance with the requirements of Section 817(h) of
the Internal Revenue Code of 1986 ("Code") and Treasury Regulation 1.817-5. Fund
shares will not be sold directly to the general public.
-3-
1.10 The Trust may refuse to sell shares of any Fund to any person, or
suspend or terminate the offering of the 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 Board of Trustees of the Trust, acting in good faith and
in light of its fiduciary duties under federal and any applicable state laws,
deemed necessary and in the best interests of the shareholders of each Fund.
1.11 For purposes of this Article I, the Life Company shall be the agent of
the Trust for receipt of purchase orders and redemption requests from each
Separate Account and receipt by the earlier of 4:00 p.m. New York time or the
close of regular trading on the New York Stock Exchange (or such other time that
the Trust determines the NAV as set forth in the prospectuses for the Funds)
constitutes receipt by the Trust on that day, provided the Trust or the Trust's
agent receives notice of net purchase orders or net redemption requests by 8:30
a.m. New York time on the next following Business Day or such later time as
permitted by Article I.
Article II. REPRESENTATIONS AND WARRANTIES
2.1. The Life Company represents and warrants that it is an insurance
company duly organized and in good standing under the laws of the State of
Delaware and that it has legally and validly established each Separate Account
as a segregated asset account under such laws, and that NYLIFE Distributors LLC,
the principal underwriter for the Variable Contracts, is registered as a
broker-dealer under the 1934 Act.
2.2. The Life Company represents and warrants that it has registered each
Separate Account as a unit investment trust in accordance with the provisions of
the 1940 Act and will cause each Separate Account to remain so registered to
serve as a segregated asset account for the Variable Contracts, unless an
exemption from registration is available. The Life Company represents and
warrants that interests in the Separate Account under the Variable Contracts
will be registered under the Securities Act of 1933 ("1933 Act") unless an
exemption from registration is available prior to any issuance or sale of the
Variable Contracts and that the Variable Contracts will be issued and sold in
compliance in all material respects with all applicable federal and state laws
and further that the sale of the Variable Contracts shall comply in all material
respects with state insurance law suitability requirements.
2.3. The Life Company represents and warrants that the Variable Contracts
are currently and at the time of issuance will be treated as life insurance,
endowment, or annuity contracts under applicable provisions of the Code, that it
will maintain such treatment, and that it will notify the Trust immediately upon
having a reasonable basis for believing that the Variable Contracts have ceased
to be so treated or that they might not be so treated in the future.
2.4. The Life Company represents and warrants that it shall deliver such
prospectuses, statements of additional information, proxy statements, and
periodic reports of each Fund as required to be delivered under applicable
federal or state law in connection with the offer, sale, or acquisition of the
Variable Contracts.
2.5. The Trust represents and warrants that the Fund shares offered and
sold pursuant to this Agreement will be registered under the 1933 Act and shall
be duly authorized for issuance and sold in accordance with all applicable
federal and state laws, and the Trust shall be registered
-4-
under the 1940 Act prior to and at the time of any issuance or sale of such
shares. The Trust shall amend its registration statement under the 1933 Act and
the 1940 Act as required in order to effect the continuous offering of Fund
shares.
2.6. The Adviser represents and warrants that each Fund currently complies,
and will continue to comply with the diversification requirements set forth in
Section 817(h) of the Code, and the rules and regulations thereunder, and will
notify the Life Company immediately upon having a reasonable basis for believing
any Fund has ceased to comply will take reasonable steps to adequately diversify
the Fund to achieve compliance within the grace period afforded by Regulation
1.817-5.
2.7. The Adviser represents and warrants that each Fund invested in by the
Separate Account is currently qualified as a "regulated investment company"
under Subchapter M of the Code, that it will maintain such qualification under
Subchapter M (or any successor or similar provisions) and will notify the Life
Company upon having a reasonable basis for believing any Fund has ceased to so
qualify.
2.8. The Life Company hereby consents to the use by the Trust of the name
and telephone number of the Life Company and to the reference by the Trust to
the relationship between the Life Company and the Trust as part of an
informational page on the Trust's site on the World Wide Web portion of the
Internet. The Life Company hereby further consents to the Trust's establishing a
link between the Trust's site and the Life Company's site from the same place
that the Life Company is listed on the Trust's site. Trust agrees to provide
Life Company with information concerning the location of the link on the Trust's
site. The Trust agrees to remove the link from its site upon the Termination of
this Agreement, as described in Article VIII of this Agreement.
2.9. The Trust represents that it is lawfully organized and validly
existing under the laws of the State of Delaware.
2.10. The Trust represents and warrants that its directors, officers,
employees dealing with the money and/or securities of the Trust are and shall
continue to be at all times covered by a blanket fidelity bond or similar
coverage for the benefit of the Trust in an amount not less than the minimum
coverage as required by Rule 17g-(1) under the 1940 Act or related provisions as
may be promulgated from time to time. The aforesaid blanket fidelity bond shall
include coveragefor larceny and embezzlement and shall be issued by a reputable
bonding company.
2.11. The Adviser represents and warrants that it is registered as an
investment adviser and shall remain duly registered under all applicable federal
and state securities laws and that it shall perform its obligations for the
Trust in compliance in all material respects with the laws of the State of
Tennessee and any applicable state and federal securities laws.
2.12. The Distributor represents and warrants that it is registered as a
broker-dealer and shall remain duly registered under all applicable federal and
state securities laws and that it shall perform its obligations for the Trust in
compliance in all material respects with the laws of the State of Connecticut
and any applicable state and federal securities laws.
-5-
2.13. Each party represents and warrants that the execution and delivery of
this Agreement and the consummation of the transactions contemplated herein have
been duly authorized by all necessary corporate, partnership or trust action, as
applicable, by such party, and, when so executed and delivered, this Agreement
will be the valid and binding obligation of such party enforceable in accordance
with its terms.
2.14. The Life Company represents and warrants that all orders for the
purchase and sale of Fund shares submitted to the Trust (or counted by the Life
Company in submitting a net order under this Agreement) will have been received
in good order by the Life Company prior to the time as of which the Fund
calculates its NAV on that Business Day, as disclosed in the prospectus for the
pertinent Fund (the "trading deadline"), in accordance with Rule 22c-1 under the
1940 Act (subject only to exceptions as permitted under Rule 22c-1(c) under the
1940 Act, respecting initial purchase payments on variable annuity contracts,
and to the established administrative procedures of the Life Company as
described under Rule 6e-3(T)(b)(12)(iii) under the 1940 Act respecting premium
processing for variable life insurance contracts). The Life Company will, upon
reasonable request, certify to the Trust and the Distributor that the Life
Company is in compliance with this Section.
2.15. The Life Company, the Trust, the Adviser, and the Distributor
represent and warrant that it is currently in compliance, and will remain in
compliance, with all applicable anti-money laundering laws, regulations and
requirements, including, but not limited to, its obligations under the U.S. Bank
Secrecy Act of 1970, and the rules and regulations thereunder.
2.16 The Trust represents and warrants that shares of each Fund have been
and will be sold only to life insurance companies and their separate accounts
and to persons or plans (collectively, "Qualified Persons") that represent and
warrant to the Trust that they qualify to purchase shares of the Fund under
Section 817(h) of the Internal Revenue Code of 1986 ("Code"), and the
regulations thereunder without impairing the ability of the Separate Account to
consider the portfolio investments of the Fund as constituting investments of
the Separate Account for the purpose of satisfying diversification requirements
of Section 817(h). The Trust represents and warrants that no shares of any Fund
have been or will be sold to the general public. The Trust shall not sell Fund
shares to any insurance company or separate account unless an agreement
substantially complying with Articles II, V, VI, and VII of this Agreement is in
effect to govern such sales, to the extent required. Life Company hereby
represents and warrants that it and the Separate Accounts are Qualified Persons.
2.17 Each party to this Agreement represents and warrants that it shall
comply with the requirements of Rule 38a-1 of the 1940 Act.
Article III. PROSPECTUS AND PROXY STATEMENTS
3.1. The Trust shall prepare and file with the SEC and any state regulators
requiring such filing all shareholder reports, notices, proxy materials (or
similar materials such as voting instruction solicitation materials),
prospectuses and statements of additional information of the Trust.
-6-
3.2. The Trust will bear the printing costs and mailing costs, as
summarized in Exhibit C to this Agreement, associated with the delivery of the
following Trust (or individual Fund) documents, and any supplements thereto, to
existing Variable Contract owners of the Life Company who are invested in the
Trust:
(i) Prospectuses and statements of additional information;
(ii) Annual and semi-annual reports; and
(iii) Proxy materials (including, but not limited to, the proxy cards,
notice and statement, as well as the costs associated with
tabulating votes).
The Life Company will submit any bills for printing, duplicating and/or mailing
costs, relating to the Trust documents described above, to the Trust for
reimbursement by the Trust. The Life Company shall monitor such costs and shall
use its best efforts to control these costs. Upon request, the Life Company will
provide the Trust on a semi-annual basis, or more frequently as reasonably
requested by the Trust, with a current tabulation of the number of existing
Variable Contract owners of the Life Company whose Variable Contract values are
invested in each Fund. This tabulation will be sent to the Trust in the form of
a letter signed by a duly authorized officer of the Life Company attesting to
the accuracy of the information contained in the letter. If requested by the
Life Company, the Trust shall provide such documentation (including a final copy
of the Trust's prospectus as set in type or in camera-ready copy) and other
assistance as is reasonably necessary in order for the Life Company to print
together in one document the current prospectus for the Variable Contracts
issued by the Life Company and the current prospectus for the Trust. The Trust
will use its best efforts to provide to the Life Company Fund annual prospectus
updates , Fund annual reports, and Fund semi-annual reports on a timely basis
each year. Should the Life Company wish to print any of these documents in a
format different from that provided by the Trust, Life Company shall provide the
Trust with sixty (60) days' prior written notice and the Life Company shall bear
the cost associated with any format change.
3.3. The Trust will provide, at its expense, the Life Company with the
following Trust (or individual Fund) documents, and any supplements thereto,
with respect to existing Contract owners who are prospective purchasers of the
Trust and with respect to prospective Variable Contract owners of the Life
Company:
(i) The current prospectus suitable for printing;
(ii) The current statement of additional information suitable for
duplication;
(iii) The current proxy material suitable for printing; and
(iv) The current annual and semi-annual reports suitable for printing.
As summarized in Exhibit C to this Agreement, the Life Company will pay all
the expenses for printing and mailing the documents described in Section 3.3 of
this Agreement.
3.4. The Trust will provide the Life Company with at least one complete
copy of all prospectuses, statements of additional information, annual and
semi-annual reports, proxy
-7-
statements, exemptive applications and all amendments or supplements to any of
the above that relate to the Fund after the filing of each such document with
the SEC or other regulatory authority. The Life Company will provide the Trust
with at least one complete copy of all prospectuses, statements of additional
information, annual and semi-annual reports, proxy statements, exemptive
applications and all amendments or supplements to any of the above that relate
to a Separate Account after the filing of each such document with the SEC or
other regulatory authority.
3.5. The Life Company agrees that it will cooperate with the Distributor
and the Trust by providing to the Distributor and the Trust, within thirty (30)
days prior to any deadline imposed by applicable laws, rules or regulations,
information regarding shares sold and redeemed and whether the Separate Accounts
are registered or unregistered under the 1940 Act and any other information
pertinent to enabling the Distributor and the Trust to pay registration or other
fees with respect to the Trust shares sold during the fiscal year in accordance
with Rule 24f-2 or to register and qualify Trust shares under any applicable
laws, rules or regulations in a timely manner.
3.6. Except with respect to information regarding the Life Company provided
in writing by that party, the Life Company shall not be responsible for the
content of the prospectus or statement of additional information for the Trust.
Also, except with respect to information regarding the Trust, Distributor,
Adviser, or the Fund provided in writing by the Trust, Distributor, or Adviser,
neither the Trust, the Distributor nor Adviser are responsible for the content
of the prospectus or statement of additional information for the Variable
Contracts.
Article IV. SALES MATERIALS; PRIVACY
4.1. The Life Company will furnish, or will cause to be furnished, to the
Trust and the Distributor, each piece of sales literature or other promotional
material in which the Trust, the Distributor or Adviser is named, at least ten
(10) Business Days prior to its intended use. No such material will be used if
the Trust or the Distributor objects to its use in writing within ten (10)
Business Days after receipt of such material.
4.2. The Trust and the Distributor will furnish, or will cause to be
furnished, to the Life Company, each piece of sales literature or other
promotional material in which the Life Company or its Separate Accounts are
named, at least ten (10) Business Days prior to its intended use. No such
material will be used if the Life Company objects to its use in writing within
ten (10) Business Days after receipt of such material.
4.3. The Trust and its affiliates and agents shall not give any information
or make any representations on behalf of the Life Company or concerning the Life
Company, the Separate Accounts, or the Variable Contracts issued by the Life
Company, other than the information or representations contained in a
registration statement or prospectus for such Variable Contracts, as such
registration statement and prospectus, or in reports of the Separate Accounts or
reports prepared for distribution to owners of such Variable Contracts, or in
sales literature or educational or other promotional material approved by the
Life Company or its designee, except with the written permission of the Life
Company.
-8-
4.4. The Life Company and its affiliates and agents shall not give any
information or make any representations on behalf of the Trust or a Fund or
concerning the Trust or a Fund other than the information or representations
contained in a registration statement or prospectus for the Trust, as such
registration statement and prospectus, or in sales literature or other
educational or promotional material approved by the Trust or its designee,
except with the written permission of the Trust.
4.5. Subject to law and regulatory authority, each party to this Agreement
shall treat as confidential all information pertaining to the owners of the
Variable Contracts and all information reasonably identified as confidential in
writing by any other party hereto and, except as permitted by this Agreement,
shall not disclose, disseminate or utilize such names and addresses and other
confidential information until such time as it may come into the public domain
without the express written consent of the affected party. Each party shall be
solely responsible for the compliance of their officers, directors, employees,
agents, independent contractors, and any affiliated and non-affiliated third
parties with all applicable privacy-related laws and regulations including but
not limited to the Xxxxx-Xxxxx-Xxxxxx Act and Regulation S-P. The provisions of
this Section shall survive the termination of this Agreement.
Article V. POTENTIAL CONFLICTS
5.1. The Board of Trustees of the Trust (the "Board") will monitor the
Trust for the existence of any material irreconcilable conflict between the
interests of the Variable Contract owners of Participating Insurance Company
Separate Accounts investing in the Trust. A material irreconcilable conflict may
arise for a variety of reasons, including: (a) state insurance regulatory
authority action; (b) a change in applicable federal or state insurance, tax, or
securities laws or regulations, or a public ruling, private letter ruling, 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 the Trust are being managed; (e) a difference
in voting instructions given by variable annuity and variable life insurance
contract owners or by contract owners of different Participating Insurance
Companies; or (f) a decision by a Participating Insurance Company to disregard
voting instructions of Variable Contract owners.
5.2. The Life Company will report any potential or existing conflicts to
the Board. The Life Company will be responsible for assisting the Board in
carrying out its responsibilities under the Conditions set forth in the notice
issued by the SEC for the Trust on May 11, 2007 (the "Notice") (Investment
Company Act Release No. IC-27821), by providing the Board with all information
reasonably necessary for it to consider any issues raised. This responsibility
includes, but is not limited to, an obligation by the Life Company to inform the
Board whenever Variable Contract owner voting instructions are disregarded by
the Life Company. These responsibilities will be carried out with a view only to
the interests of the Variable Contract owners.
5.3. If a majority of the Trust's Trustees or a majority of its
disinterested trustees ("Independent Trustees") determines that a material
irreconcilable conflict exists, affecting the Life Company, the Life Company, at
its expense and to the extent reasonably practicable (as determined by a
majority of Independent Trustees), will take any steps necessary to remedy or
eliminate the irreconcilable material conflict, including: (a) withdrawing the
assets allocable to
-9-
some or all of the Separate Accounts from the Trust or any Fund thereof and
reinvesting those assets in a different investment medium, which may include
another Fund of the Trust or another investment company or submitting the
question as to whether such segregation should be implemented to a vote of all
affected Variable Contract owners and, as appropriate, segregating the assets of
any appropriate group (i.e., Variable Contract owners of one or more
Participating Insurance Companies) that votes in favor of such segregation, or
offering to the affected Variable Contract owners the option of making such a
change; and (b) establishing a new registered management investment company or
managed separate account. If a material irreconcilable conflict arises because
of the Life Company's decision to disregard Variable Contract owner voting
instructions, and that decision represents a minority position or would preclude
a majority vote, the Life Company may be required, at the election of the Trust,
to withdraw its Separate Account's investment in the Trust, and no charge or
penalty will be imposed as a result of such withdrawal. The responsibility to
take such remedial action shall be carried out with a view only to the interests
of the Variable Contract owners.
For the purposes of this Section, a majority of the Independent Trustees
shall determine whether or not any proposed action adequately remedies any
material irreconcilable conflict, but in no event will the Trust be required to
establish a new funding medium for any Variable Contract. Further, the Life
Company shall not be required by this Section to establish a new funding medium
for any Variable Contract if any offer to do so has been declined by a vote of a
majority of Variable Contract owners materially affected by the irreconcilable
material conflict.
5.4. The Board's determination of the existence of a material
irreconcilable conflict and its implications shall be made known promptly and in
writing to the Life Company.
5.5. No less than annually, the Life Company shall submit to the Board such
reports, materials or data as the Board may reasonably request so that the Board
may fully carry out the obligations imposed upon it by these Conditions. Such
reports, materials, and data shall be submitted more frequently if the Board
deems appropriate.
Article VI. VOTING
6.1. To the extent required by Section 12(d)(1)(E)(iii)(aa) of the 1940 Act
or Rule 6e-2 or Rule 6e-3(T) thereunder, or other applicable law, whenever Trust
shall have a meeting of shareholders of any series or class of shares, the Life
Company shall:
- Solicit voting instructions from Variable Contract owners;
- Vote Trust shares held in each Separate Account at such
shareholder meetings in accordance with instructions received
from Variable Contract owners;
- Vote Trust shares held in each Separate Account for which it has
not received timely instructions in the same proportion as it
votes the applicable series or class of Trust shares for which it
has received timely instructions; and
-10-
- Vote Trust shares held in its general account in the same
proportion as it votes the applicable series or class of Trust
shares held by the Separate Accounts for which it has received
timely instructions.
Except with respect to matters as to which the Life Company has the right under
Rule 6e-2 or Rule 6e-3(T) under the 1940 Act to vote Trust shares without regard
to voting instructions from Variable Contract owners, neither the Life Company
nor any of its affiliates will recommend action in connection with, or oppose or
interfere with, the actions of the Trust Board to hold shareholder meetings for
the purpose of obtaining approval or disapproval from shareholders (and,
indirectly, from Variable Contract owners) of matters put before the
shareholders or a vote recommended by Trust Board. The Life Company shall be
responsible for assuring that it calculates voting instructions and votes Trust
shares at shareholder meetings in a manner consistent with other Participating
Insurance Companies. The Trust shall notify the Life Company of any changes to
the Order or conditions. Notwithstanding the foregoing, the Life Company
reserves the right to vote Trust shares held in any segregated asset account in
its own right, to the extent permitted by law.
6.2. If and to the extent 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 1940 Act
or the rules thereunder with respect to mixed and shared funding on terms and
conditions materially different from any exemptions granted in the Order, then
the Trust and/or the Life Company, as appropriate, shall take such steps as may
be necessary to comply with Rule 6e-2 and Rule 6e-3(T), as amended, and Rule
6e-3, as adopted, to the extent such Rules are applicable.
Article VII. INDEMNIFICATION
7.1. Indemnification by the Life Company. The Life Company agrees to
indemnify and hold harmless the Trust, the Distributor, and the Adviser and each
of their Trustees, directors, officers, employees, and agents, and each person,
if any, who controls the Trust, the Distributor, or Adviser within the meaning
of Section 15 of the 1933 Act (collectively, the "Indemnified Parties" for
purposes of Sections 7.1 to 7.3) against any and all losses, claims, damages,
liabilities (including amounts paid in settlement with the written consent of
the Life Company, which consent shall not be unreasonably withheld), or
litigation (including legal and other expenses), to which the Indemnified
Parties may become subject, insofar as such losses, claims, damages,
liabilities, or expenses (or actions in respect thereof) or settlements:
(a) Arise out of or are based upon any untrue statements or alleged
untrue statements of any material fact contained in the
registration statement, prospectus, or sales literature for the
Variable Contracts or contained in the Variable 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 Life Company by or on behalf of
the Trust for use in the registration statement,
-11-
prospectus or sales literature for the Variable Contracts or in
the Variable Contracts (or any amendment or supplement) or
otherwise for use in connection with the sale of the Variable
Contracts or Fund shares;
(b) 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
Trust not supplied by the Life Company, or persons under its
control) or wrongful conduct of the Life Company or any of its
directors, officers, employees, or agents, with respect to the
sale or distribution of the Variable Contracts or Fund shares;
(c) 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 Trust 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
statement or omission or such alleged statement or omission was
made in reliance upon and in conformity with information
furnished to the Trust for inclusion therein by or on behalf of
the Life Company;
(d) Arise as a result of any failure by the Life Company to
substantially provide the services and furnish the materials
under the terms of this Agreement; or
(e) Arise out of or result from any material breach of any
representation and/or warranty made by the Life Company in this
Agreement or arise out of or result from any other material
breach of this Agreement by the Life Company.
7.2. The Life 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 Trust, whichever is applicable.
7.3. The Life 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 Life Company 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 Life Company of
any such claim shall not relieve the Life 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 an Indemnified Party, the Life Company shall be entitled to
participate at its own expense in the defense of such action.
-12-
7.4. Indemnification by the Adviser. The Adviser agrees to indemnify and
hold harmless the Life Company and each of its directors, officers, employees,
and agents and each person, if any, who controls the Life Company within the
meaning of Section 15 of the 1933 Act (collectively, the "Indemnified Parties"
for the purposes of Sections 7.4 to 7.6) against any and all losses, claims,
damages, liabilities (including amounts paid in settlement with the written
consent of the Adviser which consent shall not be unreasonably withheld), or
litigation (including legal and other expenses) to which the Indemnified Parties
may become subject, insofar as such losses, claims, damages, liabilities, or
expenses (or actions in respect thereof) or settlements:
(a) 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
Trust (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 Adviser, the
Distributor, or the Trust by or on behalf of the Life Company for
use in the registration statement or prospectus for the Trust or
in sales literature (or any amendment or supplement) or otherwise
for use in connection with the sale of the Variable Contracts or
Fund shares;
(b) 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
Variable Contracts not supplied by the Adviser or persons under
its control) or wrongful conduct of the Trust, the Distributor,
or the Adviser or persons under their control, with respect to
the sale or distribution of the Variable Contracts or Fund
shares;
(c) Arise out of any untrue statement or alleged untrue statement of
a material fact contained in the registration statement,
prospectus, or sales literature covering the Variable 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 statements therein not
misleading, if such statement or omission or such alleged
statement or omission was made in reliance upon and in conformity
with information furnished to the Life Company for inclusion
therein by or on behalf of the Trust;
(d) Arise as a result of a failure by the Trust to substantially
provide the services and furnish the materials under the terms of
this Agreement; or
(e) Arise out of or result from any material breach of any
representation and/or warranty made by the Adviser, the
Distributor, or the Trust in this
-13-
Agreement or arise out of or result from any other material
breach of this Agreement by the Adviser, the Distributor, or the
Trust.
7.5. The Adviser 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 Life
Company.
7.6. The Adviser 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 Adviser, 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 Adviser, of any
such claim shall not relieve the Adviser 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 Adviser shall be entitled to participate at
its own expense in the defense thereof.
7.7. With respect to any claim, the Life Company, the Adviser, the Trust,
and the Distributor each shall give the others reasonable access during normal
business hours to its books, records, and employees and those books, records,
and employees within its control pertaining to such claim, and shall otherwise
cooperate with one another in the defense of any claim. Regardless of which
party defends a particular claim, the defending party shall give the other
parties written notice of any significant development in the case as soon as
practicable,
7.8. If the Life Company, or the Adviser is defending a claim and
indemnifying another party hereto, and: (i) a settlement proposal is made by the
claimant, or (ii) the defending party presents a settlement proposal to the
claimant that is accepted by the claimant (subject to acceptance by the
indemnified Party), then the defending party promptly shall provide written
notice to the indemnified party of such settlement proposal together with its
counsel's recommendation. If the defending party desires to enter into the
settlement and the indemnified party fails to consent to such settlement within
thirty (30) business days after receipt of such notice (unless such period is
extended, in writing, by mutual agreement of such parties), then the indemnified
party, commencing on the earlier of the date the indemnified party declined to
accept the settlement or the expiration of the thirty (30) day period, shall
defend the claim (at the defending party's expense) and shall relieve the
defending party of any obligation hereunder to indemnify it and hold it harmless
for all Losses associated with the claim that are in excess of the proposed
settlement amount. The defending party, however, shall remain obligated
hereunder to indemnify and hold harmless the indemnified party for any Losses up
to and including the amount of the proposed settlement.
Regardless of which party is defending the claim: (i) if a settlement
requires an admission of liability by the non-defending party or (ii) would
require the non-defending party to either take action (other than purely
ministerial action) or refrain from taking action (due to an
-14-
injunction or otherwise) (a "Specific Performance Settlement"), the defending
party may agree to such settlement only after obtaining the express, written
consent of the non-defending party. If a non-defending party fails to consent to
a Specific Performance Settlement, the consequences described in the last
sentence of the first paragraph of section 7.8 shall not apply.
7.9. The Life Company, the Adviser, the Trust, and the Distributor shall
use good faith efforts to resolve any dispute concerning this indemnification
obligation. Should those efforts fail to resolve the dispute, the ultimate
resolution shall be determined in a de novo proceeding, separate and apart from
the underlying matter complained of, before a court of competent jurisdiction.
Either party may initiate such proceedings with a court of competent
jurisdiction at any time following the termination of the efforts by such
parties to resolve the dispute (termination of such efforts shall be deemed to
have occurred thirty (30) days from the commencement of the same unless such
time period is extended by the written agreement of the parties). The prevailing
party in such a proceeding shall be entitled to recover reasonable attorneys'
fees, costs, and expenses.
7.10. A successor by law of the parties to this Agreement shall be entitled
to the benefits of the indemnification contained in this Article VII.
7.11 The provisions of this Article VII shall survive the termination of
this Agreement.
Article VIII. TERM; TERMINATION
8.1. This Agreement shall be effective as of the date hereof and shall
continue in force until terminated in accordance with the provisions herein.
8.2. This Agreement shall terminate in accordance with the following
provisions:
(a) At the option of the Life Company or the Trust at any time from
the date hereof upon 90 days' written notice, unless a shorter
time is agreed to by the parties;
(b) At the option of the Life Company or the Trust, if Fund shares
are not reasonably available to meet the requirements of the
Variable Contracts. Prompt notice of election to terminate shall
be furnished by the Life Company. The termination will be
effective ten days after receipt of notice unless the Trust makes
available a sufficient number of Fund shares to reasonably meet
the requirements of the Variable Contracts within the ten-day
period;
(c) At the option of the Life Company, upon the institution of formal
proceedings against the Trust, the Distributor, or Adviser by the
SEC, the NASD, or any other regulatory body, the expected or
anticipated ruling, judgment, or outcome of which would, in the
Life Company's reasonable judgment, materially impair the
Trust's, the Distributor's, or the Adviser's ability to meet and
perform their respective obligations and duties hereunder. Prompt
notice of election to terminate shall be furnished by
-15-
the Life Company with said termination to be effective upon
receipt of notice;
(d) At the option of the Trust, the Distributor, or the Adviser, upon
the institution of formal proceedings against the Life Company by
the SEC, the NASD, or any other regulatory body, the expected or
anticipated ruling, judgment or outcome of which would, in
Trust's reasonable judgment, materially impair the Life Company's
ability to meet and perform its obligations and duties hereunder.
Prompt notice of election to terminate shall be furnished by
Trust with said termination to be effective upon receipt of
notice;
(e) At the option of the Life Company, in the event the Trust's
shares are not registered, issued, or sold in accordance with
applicable state or federal law, or such law precludes the use of
such shares as the underlying investment medium of Variable
Contracts issued or to be issued by the Life Company. Termination
shall be effective immediately upon notice to the Trust;
(f) At the option of the Trust if the Variable Contracts cease to
qualify as annuity contracts or life insurance contracts, as
applicable, under the Code, or if the Trust reasonably believes
that the Variable Contracts may fail to so qualify. Termination
shall be effective upon receipt of notice by the Life Company;
(g) At the option of the Life Company, upon the Trust's breach of any
material provision of this Agreement, which breach has not been
cured to the satisfaction of the Life Company within ten days
after written notice of such breach is delivered to the Trust;
(h) At the option of the Trust, upon the Life Company's breach of any
material provision of this Agreement, which breach has not been
cured to the satisfaction of the Trust within ten days after
written notice of such breach is delivered to the Life Company;
(i) At the option of the Trust, if the Variable Contracts are not
registered, issued, or sold in accordance with applicable federal
and/or state law. Termination shall be effective immediately upon
such occurrence without notice to the Life Company;
(j) At the option of the Life Company in the event that any 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 Life Company reasonably believes that any
Fund may fail to so qualify. Termination shall be effective
immediately upon notice to the Trust;
(k) At the option of the Life Company in the event that any Fund
fails to meet the diversification requirements specified in
Article II hereof or if the Life
-16-
Company reasonably believes that any Fund may fail to meet such
diversification requirements. Termination shall be effective
immediately upon notice to the Trust; and
(l) In the event this Agreement is assigned without the prior written
consent of the Life Company, the Trust, the Distributor, and the
Adviser, termination shall be effective immediately upon such
occurrence without notice.
8.3. Notwithstanding any termination of this Agreement pursuant to Section
8.2 hereof, the Trust shall, at the option of the Life Company, continue to make
available additional Fund shares, as provided below, for so long as the Life
Company desires pursuant to the terms and conditions of this Agreement, for all
Variable Contracts in effect on the effective date of termination of this
Agreement ("Existing Contracts"). Specifically, without limitation, if the Life
Company so elects to make additional Fund shares available, the owners of the
Existing Contracts or the Life Company, whichever shall have legal authority to
do so, shall be permitted to reallocate investments in the Trust, redeem
investments in the Trust and/or invest in the Trust upon the payment of
additional premiums under the Existing Contracts. In the event of a termination
of this Agreement, the Life Company, as promptly as is practicable under the
circumstances, shall notify the Trust, the Distributor, and the Adviser whether
the Life Company elects to continue to make Fund shares available after such
termination. If Fund shares continue to be made available after such
termination, the provisions of this Agreement shall remain in effect.
8.4. Except as necessary to implement Variable Contract owner initiated
transactions, or as required by state insurance laws or regulations, the Life
Company shall not redeem the shares attributable to the Variable Contracts (as
opposed to the shares attributable to the Life Company's assets held in the
Separate Accounts or invested directly), and the Life Company shall not prevent
Variable Contract owners from allocating payments to a Fund that was otherwise
available under the Variable Contracts, until thirty (30) days after the Life
Company shall have notified the Trust of its intention to do so.
8.5 The parties to this Agreement agree to cooperate and give reasonable
assistance to one another in taking all necessary and appropriate steps for the
purpose of ensuring that the Separate Account owns no shares of a Fund after the
effective date of this Agreement's termination with respect to such shares, or,
if such ownership following termination cannot be avoided, that the duration
thereof is as brief as reasonably practicable.
-17-
Article IX. NOTICES
Any notice hereunder shall be given by registered or certified mail return
receipt requested 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 Trust: Lincoln Variable Insurance Products Trust
0000 Xxxxx Xxxxxxx Xxxxxx
Xxxx Xxxxx, Xxxxxxx 00000
c/o Xxxxx X. Xxxxxxxxx
If to the Distributor: Lincoln Financial Distributors, Inc.
Metro Center, 000 Xxxxxx Xxxxxx
Xxxxxxxx, Xx 00000
c/o Xxxx Xxxxxxx
If to the Adviser: Lincoln Investment Advisors Corporation
0000 Xxxxx Xxxxxxx Xxxxxx
Xxxx Xxxxx, XX 00000
c/o Xxxxxxx X. Xxxxx, Xx.
If to the Life Company: New York Life Insurance and Annuity Corporation
00 Xxxxxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxxx X. Xxxxxx
with a copy to:
New York Life Insurance Company
Office of the General Counsel
51 Madison Avenue, Room 10SB
Xxx Xxxx, XX 00000
Attention: Variable Products Attorney
Notice shall be deemed given on the date of receipt by the addressee as
evidenced by the return receipt.
Article X. MISCELLANEOUS
10.1. This Agreement may be executed simultaneously in two or more
counterparts, each of which taken together shall constitute one and the same
instrument.
10.2. 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.
-18-
10.3. This Agreement shall be construed and the provisions hereof
interpreted under and in accordance with the laws of the State of Delaware
without regard to conflicts of laws principles thereof. It shall also be subject
to the provisions of the federal securities laws and the rules and regulations
thereunder and to any orders of the SEC granting exemptive relief therefrom and
the conditions of such orders.
10.4. The parties agree that the assets and liabilities of each Fund are
separate and distinct from the assets and liabilities of each other Fund. No
Fund shall be liable or shall be charged for any debt, obligation, or liability
of any other Fund. No Trustee, officer, or agent shall be personally liable for
such debt, obligation, or liability of any Fund.
10.5. Each party shall cooperate with each other party and all appropriate
governmental authorities (including without limitation the SEC, the NASD, and
state insurance regulators) and shall permit such authorities reasonable access
to its relevant books and records in connection with any investigation or
inquiry relating to this Agreement or the transactions contemplated hereby.
10.6. 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.
10.7. No provision of this Agreement may be amended or modified in any
manner except by a written agreement properly authorized and executed by the
Trust, the Distributor, the Adviser, and the Life Company; provided, however,
that the Adviser may from time to time update Exhibit A to this Agreement, with
a copy to the Life Company in due course, to add a new Fund, delete an inactive
or terminated Fund, or reflect the change of name of a Fund. The establishment
by the Life Company of an account in any Fund, whether or not as yet reflected
on an updated Exhibit A, shall constitute the agreement by the Life Company and
the Trust, the Distributor and the Adviser to be bound by the provisions of this
Agreement with respect to that Fund.
10.8. Notwithstanding anything to the contrary contained herein, the Trust,
the Distributor, and the Adviser agree that the Life Company shall be fully
entitled to make disclosure of information relating to the structure and tax
aspects of the transactions contemplated by this Agreement, without limitation
of any kind on such disclosure, and all materials of any kind (including
opinions or other tax analysis) that are provided herein related to such
structure and tax aspects as described in Treasury Regulation Section
301.6111-2(c)(3).
10.9 Each party to this Agreement shall notify the other parties in writing
of reasonable concerns or issues it may have from time to time concerning
market-timing, excessive trading, or other potentially detrimental trading
activities that affect or may affect a Separate Account or a Fund, and shall
consult with each other party and work cooperatively to reach a mutually
satisfactory solution or action plan to address such party's concerns or issues,
it being understood and agreed to by all parties (i) that there is no
universally accepted understanding of what may constitute market timing,
excessive trading, or other detrimental trading activity, (ii) that the state of
the law regarding such trading activities is currently uncertain, and (iii) that
Congress, the SEC and other regulatory bodies may adopt new laws or regulations
that may require the Parties to revise the terms and conditions of this
Agreement.
-19-
IN WITNESS WHEREOF, the parties have caused their duly authorized officers
to execute this Fund Participation Agreement as of the date and year first above
written.
LINCOLN VARIABLE INSURANCE PRODUCTS LINCOLN INVESTMENT ADVISORS CORPORATION
TRUST
By: By:
--------------------------------- ------------------------------------
Name: Xxxxx X. Xxxxxxxxx Name: Xxxxxxx X. Xxxxx, Xx.
Title: President Title: 2nd Vice President and
Ass't. Treasurer
LINCOLN FINANCIAL DISTRIBUTORS, INC. NEW YORK LIFE INSURANCE AND
ANNUITY CORPORATION
By: By:
--------------------------------- ------------------------------------
Name: Xxxxx Xxxx Name: Xxxxxx X. Xxxxxx
Title: Vice President Title: Senior Vice President
-20-
EXHIBIT A
The currently available Funds of the Trust are:
1. LVIP Baron Growth Opportunities Fund (Service Class)
-21-
EXHIBIT B
SEPARATE ACCOUNTS OF THE LIFE COMPANY REGISTERED UNDER THE 1940 ACT AS UNIT
INVESTMENT TRUSTS
The following separate accounts are subject to this Agreement:
NYLIAC Corporate Sponsored Variable Universal Life Separate Account-I
NYLIAC Private Placement Variable Universal Life Insurance Separate
Account-I
NYLIAC Private Placement Variable Universal Life Insurance Separate
Account-II
VARIABLE ANNUITY CONTRACTS AND VARIABLE LIFE INSURANCE CONTRACTS REGISTERED
UNDER THE SECURITIES ACT OF 1933
The following contracts are subject to this Agreement:
Corporate Executive Series Variable Universal Life #300-40 and CorpExec VUL
#301-43
VARIABLE LIFE INSURANCE CONTRACTS NOT REGISTERED UNDER THE SECURITIES ACT OF
1933
CorpExec Private Placement Variable Universal Life - #304-47 (Individual
policies), #304-46 C (Group policies).
-22-
EXHIBIT C
COST ALLOCATION
The COMPANY The TRUST or its Agent (as appropriate)
----------- ---------------------------------------
Preparing and filing the Separate Preparing and filing the Trust
Account registration statements. registration statement.
Text composition and alterations for Text composition and alterations for the
the Separate Account prospectuses, Trust prospectuses, SAIs and any
SAIs and any supplements thereto. supplements thereto, including versions
of these documents to accommodate
various combinations of Funds offered
under Separate Account prospectuses.
Printing of the Trust prospectuses, Supplying typeset, camera and/or
SAIs and supplements thereto for web-ready Trust prospectuses, SAIs and
prospective Contract owners. Printing supplements. Printing of the Trust
Separate Account prospectuses, SAIs prospectuses, SAIs and supplements
and supplements thereto. thereto for existing Contract owners
that invest in the Trust.
Mailing and distributing the Trust All or the Trust's pro-rata portion (if
prospectuses, SAIs and supplements combined with documents of other funds)
thereto to prospective Contract of mailing and distributing the Trust
owners. Mailing and distributing prospectuses, SAIs and supplements
Separate Account prospectuses, SAIs thereto to existing Contract owners.
and supplements to prospective and (SAIs are distributed only upon request
existing Contract owners. (SAIs are of the Contract owner.)
distributed only upon request of the
Contract owner.)
Text composition and alterations of Text composition and alterations of the
the Separate Account portion of the Trust proxy statements and voting
annual and semi-annual reports. instructions solicitation materials to
Contract owners with respect to proxies
related to the Trust, annual and
semi-annual reports for the Trust and
other communications to shareholders.
Printing, mailing and distributing Supplying typeset, camera and/or
annual and semi-annual reports for web-ready Trust proxy statements and
prospective Contract owners and voting instructions solicitation
existing Contract owners who do not materials, and other communications to
currently invest in the Trust. shareholders. Printing and mailing for
copies of such materials distributed to
existing Contract owners that invest in
the Trust.
Text composition, alterations, All or the Trust's pro-rata portion (if
printing, mailing and distributing, combined with documents of other funds)
and tabulation of proxy statements of mailing and distributing annual and
and voting instruction solicitation semi-annual reports for the Trust to
materials to Contract owners with existing Contract owners that invest in
respect to proxies related to the the Trust.
Separate Account(s).
Preparation, printing and Mailing and distributing and tabulation
distributing sales material and of proxy statements and voting
advertising related to the Trust and instruction solicitation materials to
contained in Separate Account Contract owners with respect to proxies
advertising and sales materials; and related to the Trust.
filing such materials with and
obtaining approval from, the SEC, the
National Association of Securities
Dealers, Inc., any state insurance
regulatory authority and any other
appropriate regulatory authority, to
the extent required.
-23-
