FUND PARTICIPATION AGREEMENT among THE HUNTINGTON FUNDS, HUNTINGTON ASSET ADVISORS, INC., UNIFIED FINANCIAL SECURITIES, INC. and HARTFORD LIFE INSURANCE COMPANY FUND PARTICIPATION AGREEMENT
Exhibit
10 under Item 601/Reg. S-K
among
THE
HUNTINGTON FUNDS,
HUNTINGTON
ASSET ADVISORS, INC.,
UNIFIED
FINANCIAL SECURITIES, INC.
and
HARTFORD
LIFE INSURANCE COMPANY
THIS AGREEMENT, made as of the
1st day
of April, 2009 by and among Hartford Life Insurance Company, Hartford Life and
Annuity Insurance Company (Hartford Life and Annuity Insurance Company and
Hartford Life Insurance Company being collectively referred to herein as
“Hartford”), on Hartford’s behalf and on behalf of each separate account set
forth on Schedule A attached as it may be amended from time to time (the
“Separate Accounts”); The Huntington Funds, a Delaware statutory trust (the
“Trust”), on its behalf and on behalf of each of its series set forth on
Schedule B attached as it may be amended from time to time (the “Funds”);
Unified Financial Securities, Inc., an Indiana corporation, and Huntington Asset
Advisors, Inc., a registered investment adviser (the “Adviser”).
WHEREAS, the Trust, the
Adviser, Hartford and Edgewood Services, Inc. ("Edgewood") were parties to a
Fund Participation Agreement dated as of June 23, 2006, as amended on May 1,
2008 (the "Original Agreement"); and
WHEREAS, Edgewood was
terminated as the Trust's distributor, and replaced with Unified Financial
Securities, Inc. effective April 1, 2009; and
WHEREAS, the Original
Agreement terminated upon Edgewood's termination as referenced above, and thus
the Trust, the Adviser, Hartford and Unified Financial Securities, Inc.
("Distributor") now seek to enter into a new Fund Participation Agreement,
effective as of April 1, 2009; and
WHEREAS, the Trust engages in
business as an open-end management investment company and its Funds are
available to act as the investment vehicle for separate accounts established by
insurance companies for life insurance policies and annuity contracts;
and
WHEREAS, the Distributor is
registered as a broker/dealer under the Securities Exchange Act of 1934, as
amended (the “1934 Act”), is a member in good standing of the National
Association of Securities Dealers, Inc. (the “NASD”) and serves as principal
underwriter of the shares of the Trust; and
WHEREAS, the Adviser is
registered as an investment adviser under the Investment Advisers Act of 1940,
as amended, and serves as the investment adviser to the Trust; and
WHEREAS, Hartford is an
insurance company which has registered or will register the variable annuities
and/or variable life insurance policies listed on Schedule A attached as may be
amended from time to time under the Securities Act of 1933 (the “1933 Act”) and
the Investment Company Act of 1940 (the “1940 Act”) to be issued by it for
distribution (the “Contracts”); and
WHEREAS, the Trust intends to
make available shares of the Funds to the Separate Accounts of Hartford;
and
WHEREAS, to the extent
permitted by applicable insurance laws and regulations, the Separate Accounts
wish to purchase shares of the Funds to serve as an investment medium for the
Contracts funded by the Separate Accounts, and the Distributor is authorized to
sell shares of the Funds; and
WHEREAS, the Fund shares may
be made available to separate accounts of one or more insurance companies that
fund variable annuity contracts or variable life insurance policies, subject to
receipt of any required relief pursuant to an exemptive order from the
Securities and Exchange Commission (“SEC”), granting exemptions from the
provisions of various sections of the 1940 Act and Rules thereunder, to the
extent necessary to permit shares of the Funds to be sold to and held by
variable annuity and variable life insurance separate accounts of life insurance
companies that may or may not be affiliated with one another (hereinafter the
“Mixed and Shared Funding Exemptive Order”);
NOW, THEREFORE, in
consideration of their mutual promises, Hartford, the Trust, the Distributor and
the Adviser agree as follows:
ARTICLE
I. FUND SHARES
1.5 The Trust
and the Distributor agree to make shares of the Funds available for purchase on
each Business Day (as defined below) by the Separate Accounts. Each
Fund will execute orders placed for each Separate Account on a daily basis at
the net asset value next computed after receipt and acceptance by the Trust or
its designee of such order.
A. For
purposes of this Agreement, Hartford shall be the designee of the Trust for
receipt of orders from each Separate Account and receipt by Hartford constitutes
receipt by the Trust, provided that the Distributor receives notice of orders by
8:30 a.m. (Eastern time) on the next following Business Day.
B. For
purposes of this Agreement, “Business Day” shall mean each day on which the New
York Stock Exchange is open for trading and on which each Fund calculates its
net asset value pursuant to the rules of the Securities and Exchange Commission
(“SEC”) as set forth in the Trust’s registration statement on Form N-1A (the
“Registration Statement”).
1.5 The Trust
agrees to make available on each Business Day shares of the Funds for purchase
at the applicable net asset value per share by the Separate Accounts; provided,
however, that the Board of Trustees of the Trust (the “Board”), acting in good
faith and in the exercise of its fiduciary responsibilities, may refuse to
permit the Trust to sell shares of any Fund to any person, or suspend or
terminate the offering of shares of any Fund if such action is required by law
or by regulatory authorities having jurisdiction over the sale of shares or if
the Board determines that such action is necessary in the best interests of the
shareholders of any Fund.
1.5 The Trust
and Distributor agree that shares of the Funds will be sold only to insurance
companies, for use in conjunction with variable life insurance policies or
variable annuities to separate accounts of insurance companies, and to other
persons consistent with the diversification rules under Section 817(h) of the
Internal Revenue Code of 1986, as amended (the “Code”), and the regulations
thereunder. No shares of the Funds will be sold to the general public
unless otherwise permitted by the Mixed and Shared Funding Exemptive Order and
any applicable provisions of the Code.
1.4 Upon
receipt of a request for redemption in proper form from Hartford on any Business
Day, the Trust agrees to redeem any full or fractional shares of the Funds held
by the Separate Accounts at the net asset value next computed after receipt and
acceptance by the Trust or its designee of the request for redemption, except
that the Trust reserves the right to suspend redemptions temporarily to the
extent permitted under the 1940 Act. Such redemption shall be paid
consistent with applicable rules of the SEC and procedures and policies of the
Trust as described in the Trust’s current registration statement.
A. For
purposes of this Agreement, Hartford shall be the designee of the Trust for
receipt of redemption requests from each Separate Account and receipt by
Hartford constitutes receipt by the Trust, provided that the Distributor
receives notice of the redemption request by 8:00 a.m. (Eastern time) on the
next following Business Day. Hartford agrees to submit such orders
electronically through secured trading systems as described on Schedule C to
this Agreement or, if it is unable to submit orders electronically, Hartford
shall submit such orders through manual transmissions using the procedures
described in Schedule C to this Agreement.
1.5 Hartford
agrees that purchases and redemptions of Fund shares shall be made in accordance
with the provisions of the then current prospectuses of the Funds.
A. Hartford
will place separate orders to purchase or redeem shares of each
Fund. Each order shall describe the net amount of shares and dollar
amount of each Fund to be purchased or redeemed.
B. Unless
otherwise specified in Schedule C, Hartford shall pay for shares of the Funds on
the next Business Day after Hartford’s receipt of an order to purchase shares of
a Fund, and payment shall be in federal funds transmitted by wire.
C. In
the event of net redemptions, a Fund shall pay the redemption proceeds in
federal funds transmitted by wire on the next Business Day after Hartford’s
receipt of an order to redeem shares.
1.6 Issuance
and transfer of a Fund’s shares will be by book entry only. Share
certificates will not be issued to Hartford or any Separate
Account. Shares purchased will be recorded in an appropriate title
for each Separate Account or the appropriate sub-account of each Separate
Account. The Trust shall furnish to Hartford the CUSIP number
assigned to each Fund identified in Schedule B attached as may be amended from
time to time.
1.7 The
Trust or its designee shall notify Hartford in advance of any dividends or
capital gain distributions payable on a Fund’s shares, but by no later than same
day notice by 6:00 p.m. Eastern time (by wire or telephone, followed by written
confirmation). Hartford elects to receive all such dividends and
capital gain distributions in additional shares of the paying
Fund. The Trust or its agent shall
notify Hartford of the number of shares issued as payment of dividends and
distributions. Hartford reserves the right to revoke this election
and to receive all such dividends and capital gain distributions in
cash.
1.8 Unless
otherwise specified in Schedule C, the Trust or its agent shall advise Hartford
on each Business Day of the net asset value per share for each Fund as soon as
reasonably practical after the net asset value per share is calculated and shall
use its best efforts to make such net asset value per share available by 6:30
p.m. Eastern time.
A. If
the Trust or its agent provides materially incorrect share net asset value
information through no fault of Hartford, the Separate Accounts shall be
entitled to an adjustment with respect to the Fund shares purchased or redeemed
to reflect the correct net asset value per share.
B. The
determination of the materiality of any net asset value pricing error and its
correction shall be based on the SEC’s recommended guidelines regarding these
errors. Any material error in the calculation or reporting of net
asset value per share, dividend or capital gain information shall be reported
promptly to Hartford upon discovery. The Trust and/or its agents
shall indemnify and hold harmless Hartford against any amount Hartford is
legally required to pay qualified plans (“Plans”) or Contract owners, and which
amount is due to the Trust’s or its agents’ material miscalculation and/or
incorrect reporting of the daily net asset value, dividend rate or capital gains
distribution rate. Hartford shall submit an invoice to the Trust or
its agents for such losses incurred as a result of the above which shall be
payable within sixty (60) days of receipt. Should a material
miscalculation by the Trust or its agents result in a gain to Hartford, Hartford
shall immediately reimburse the Trust or its agents for any amount lost by the
Trust or its agents as a result of the incorrect calculation. Should
a material miscalculation by the Trust or its agents result in a gain to the
Plans or Contract owners, Hartford will consult with the Trust or its designee
as to what reasonable efforts shall be made to recover the money and repay the
Trust or its agents. Hartford shall then make such reasonable effort,
at the expense of the Trust or its agents, to recover the money and repay the
Trust or its agents; but Hartford shall not be obligated to take legal action
against the Plans or Contract owners.
With respect to the material errors or
omissions relating to net asset value pricing, this section shall control over
other indemnification provisions in this Agreement.
C. Notwithstanding
anything possibly to the contrary in this Agreement or any Rule 22c-2
Shareholder Information Agreement entered into by the parties, the Trust hereby
waives enforcement rights of fund policies regarding market timing or frequent
trading with respect to transfers of assets into or from Hartford sponsored
dynamic or static asset allocation models.
ARTICLE
II. GENERAL DUTIES
2.1 Hartford
shall take all such actions as are necessary under applicable federal and state
law to permit the sale of the Contracts issued by Hartford, including
registering each Separate Account as an investment company to the extent
required under the 1940 Act, and registering the Contracts or interests in the
Separate Accounts under the Contracts to the extent required under the 1933 Act,
and obtaining all necessary approvals to offer the Contracts from state
insurance commissioners.
2.2 Hartford
shall make every effort to maintain the treatment of the Contracts issued by
Hartford as annuity contracts or life insurance policies, whichever is
appropriate, under the applicable provisions of the Code, and shall notify the
Trust and the Distributor immediately upon having a reasonable basis for
believing that such Contracts have ceased to be so treated or that they might
not be so treated in the future. In that regard, Hartford shall make
every effort to remedy any Contract's failure to be treated as annuity contracts
or life insurance policies, as appropriate, under applicable provisions of the
Code, including Section 72 and regulations thereunder within the required time
frames.
2.3 Hartford
or its agents shall offer and sell the Contracts in accordance with applicable
provisions of the 1933 Act, the 1934 Act, the 1940 Act, the NASD Rules of Fair
Practice, and state insurance law respecting the offering of variable life
insurance policies and variable annuity contracts.
2.4 The
Distributor shall sell and distribute the shares of the Funds in accordance with
the applicable provisions of the 1933 Act, the 1934 Act, the 1940 Act, the NASD
Rules of Fair Practice, and state law.
2.5 During
such time as the Trust engages in activities that require a Mixed and Shared
Funding Exemptive Order, a majority of the Trust’s Board shall consist of
persons who are not "interested persons" of the Trust ("Independent Trustees"),
as defined by Section 2(a)(19) of the 1940 Act and the rules thereunder, and as
modified by any applicable orders of the SEC, except that if this provision of
this Article 2.5 is not met by reason of the death, disqualification, or bona
fide resignation of any Trustee or Trustees, then the operation of this
provision shall be suspended (a) for a period of 45 days if the vacancy or
vacancies may be filled by the Trust’s Board; (b) for a period of 60 days if a
vote of shareholders is required to fill the vacancy or vacancies; or (c) for
such longer period as the SEC may prescribe by rule or order upon
application.
2.6 As
long as pass through voting is required by the SEC, and provided it is
consistent with their fiduciary duties, Hartford and its agents will not in any
way recommend any proposal in opposition to, or oppose or interfere with, any
proposal submitted by the Trust at a meeting of owners of Contracts or
shareholders of the Funds, and will in no way recommend any proposal in
opposition to, or oppose or interfere with, the solicitation of proxies by the
Trust of shares held by Contract owners, without the prior written consent of
the Trust.
2.7 Each
party hereto shall cooperate with each other party and all appropriate
governmental authorities having jurisdiction (including, without limitation, the
SEC, the NASD, and state insurance regulators) and shall permit such authorities
reasonable access to its books and records in connection with any investigation
or inquiry relating to this Agreement or the transactions contemplated
hereby.
ARTICLE
III. REPRESENTATIONS AND WARRANTIES
3.1
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Hartford
represents and warrants that:
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A. The
Contracts or the interests in the Separate Accounts under such Contracts are or
prior to issuance will be registered as securities under the 1933 Act unless
exempt and that the registrations will be maintained to the extent required by
law.
B. The
Contracts will be issued in compliance with all applicable federal and state
laws and regulations.
C. Hartford
is a life insurance company duly organized and in good standing under
Connecticut law and that it is taxed as an insurance company under applicable
provisions of the Code.
D. Hartford
has legally and validly established each Separate Account prior to any issuance
or sale as a segregated asset account under the Connecticut Insurance Code and
has registered or, prior to any issuance or sale of the Contracts, will register
and will maintain the Registration of each Separate Account as a unit investment
trust in accordance with the 1940 Act, and each of the Separate Accounts is a
validly existing separate account under the applicable federal and state
law.
E. The
Contracts are treated as annuity contracts under applicable provisions of the
Code. Hartford will make every effort to maintain such treatment and
will notify the Trust and the Adviser immediately in writing upon having a
reasonable basis for believing that the Contracts have ceased to be treated as
such or might not be treated as such in the future.
3.2
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The
Trust and the Distributor represent and warrant
that:
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A. Fund
shares sold pursuant to this Agreement shall be registered under the 1933 Act
and the regulations thereunder to the extent required.
B. Fund
shares shall be duly authorized for issuance in accordance with the laws of each
jurisdiction in which shares will be offered.
C. Fund
shares shall be offered in compliance with all applicable federal and state
securities laws and regulations.
D. The
Trust is or will be registered under the 1940 Act and the regulations thereunder
to the extent required.
E. The
Trust shall amend the Registration Statement for Fund 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.
3.3 The
Trust and the Adviser represent and warrant that each Fund will qualify as a
Regulated Investment Company under Subchapter M of the Code. The
Trust and Adviser will make every effort to maintain such qualification and that
both will notify Hartford immediately in writing upon having a reasonable basis
for believing that the Trust has ceased to qualify or that the Trust might not
qualify in the future. In the event the Trust ceases to so qualify,
it will immediately take all steps necessary (a) to notify Hartford of such
event and (b) where available, achieve compliance within any grace period
afforded under the Code.
3.4 The
Trust represents and warrants that:
A. The
Trust is duly organized and validly existing under the laws of the State of
Delaware.
B. The
Trust does and will comply in all material respects with the 1940
Act.
C. If
the Trust determines that it is necessary, the Trust will obtain prior to sale
or issuance of the Contracts, an order from the SEC, granting participating
insurance companies and variable insurance product separate accounts exemptions
from the provisions of the 1940 Act, as amended, and the rules thereunder, to
the extent necessary to permit shares of the Trust to be sold to and held by
variable insurance product separate accounts of both affiliated and unaffiliated
life insurance companies.
3.5 The
Distributor represents and warrants that:
A. It
is and shall remain duly registered under all applicable federal and state laws
and regulations necessary for the performance of its obligations to the Trust
and Hartford and that it will perform its obligations to the Trust and Hartford
in compliance with the laws and regulations and any applicable state and federal
laws and regulations.
ARTICLE
IV. PROSPECTUSES; REPORTS TO SHAREHOLDERS
AND
PROXY STATEMENTS; VOTING
4.1 The
Trust, at its expense, will print and provide Hartford with as many copies of
each Fund’s current prospectus and statement of additional information as
Hartford may reasonably request to deliver to existing Contract
owners. At Hartford’s request, the Trust will provide, in lieu of the
printed prospectuses, camera-ready film or computer diskettes containing a
Fund’s prospectus and statement of additional information or electronic files of
the same for printing by Hartford at the Trust’s expense. If Hartford
chooses to receive camera-ready film, computer diskettes or electronic files in
lieu of receiving printed copies of a Fund’s prospectus and statement of
additional information, the Trust shall bear the cost of providing the
information in that format. Hartford will deliver, at the Trust’s
expense, such prospectuses, and statements of additional information to existing
Contract owners as required under applicable law.
A. Hartford
may elect to print a Fund’s prospectus and/or its statement of additional
information in combination with the prospectuses and statements of additional
information of other registered investment companies. In such event,
the Trust shall bear its pro rata share of printing expenses based on the number
of combined printed pages.
4.2 Hartford,
at its expense, will print the Contract prospectus for use with prospective
owners of Contracts.
4.3 The
Trust, at its expense, will provide Hartford with printed or electronic copies
of its reports to shareholders, and other communications to shareholders in such
quantity as Hartford shall reasonably require for distributing, at the Trust’s
expense, to Contract owners.
4.4 The
Trust will provide Hartford with copies of its proxy
solicitations. Hartford, at its own expense, will, to the extent
required by law, (a) distribute proxy materials to eligible Contract owners, (b)
solicit voting instructions from eligible Contract owners, (c) vote the Fund
shares in accordance with instructions received from Contract owners; and (d) if
required by law, vote Fund shares for which no instructions have been received
in the same proportion as shares of the Fund for which instructions have been
received.
A. To
the extent permitted by applicable laws and subject to Article 2.6, Hartford
reserves the right to vote Fund shares held in any Separate Account in its own
right.
4.5 The
Trust will comply with all provisions and interpretations of the 1940 Act and
the rules thereunder requiring voting by shareholders.
4.6 If
and during the time as the Trust engages in activities that require a Mixed and
Shared Funding Exemptive Order, the Trust shall disclose in its prospectus that
(1) the Funds are intended to be a funding vehicle for variable annuity and
variable life insurance contracts offered by various insurance companies, (2)
material irreconcilable conflicts possibly may arise, and (3) the Board will
monitor events in order to identify the existence of any material irreconcilable
conflicts and to determine what action, if any, should be taken in response to
any such conflict. The Trust hereby notifies Hartford that prospectus
disclosure may be appropriate regarding potential risks of offering shares of
the Funds to separate accounts funding both variable annuity contracts and
variable life insurance policies and to separate accounts funding Contracts of
unaffiliated life insurance companies.
ARTICLE
V. SALES MATERIAL AND INFORMATION
5.1 Hartford
shall furnish, or shall cause to be furnished, to the Trust and the Adviser at
least ten (10) Business Days prior it is use, each piece of sales literature or
other promotional material prepared by Hartford in which the Trust (or any Fund
in the Trust), the Adviser or the Distributor is described. No sales
literature or other promotional material will be used if the Trust, the Adviser,
or the Distributor reasonably objects to its use within ten (10) Business Days
after receipt by the Trust or the Adviser.
5.2 Hartford
and its affiliates and agents will not, without the permission of the Trust,
give any information or make any representations or statements on behalf of the
Trust or Adviser or concerning the Funds, the Trust or the Adviser, in
connection with the advertising or sale of the Contracts, other than information
or representations contained in: (a) the Trust’s Registration
Statement or any Fund prospectus, (b) reports to shareholders, (c) proxy
statements for the Funds, or, (d) sales literature or other promotional material
approved by the Trust.
5.3 The
Trust or Adviser shall furnish, or shall cause to be furnished, to Hartford or
its designee at least ten (10) Business Days prior to its use, each piece of
sales literature or other promotional material prepared by the Trust or the
Adviser in which Hartford, the Contracts or Separate Accounts, are
described. No sales literature or other promotional material will be
used if Hartford reasonably objects to its use within ten (10) Business Days
after receipt by Hartford.
5.4 Neither
the Trust, the Adviser nor the Distributor will, without the permission of
Hartford, give any information or make any representations or statements on
behalf of Hartford, the Contracts, or the Separate Accounts or concerning
Hartford, the Contracts or the Separate Accounts, in connection with the
advertising or sale of the Contracts, other than the information or
representations contained in: (a) the registration statement or
prospectus for the Contracts, (b) reports to shareholders, (c) in sales
literature or other promotional material approved by Hartford.
5.5 The
Trust will provide to Hartford at least one complete copy of all registration
statements, prospectuses, statements of additional information, reports to
shareholders, proxy statements, solicitations for voting instructions, sales
literature or other promotional materials, applications for exemptions and
requests for no-action letters, and all amendments, that relate to the Trust or
its shares, promptly after the filing of such document with the SEC or other
regulatory authority.
5.6 With
respect to the Contracts listed on Schedule A attached as may be amended from
time to time, Hartford will provide to the Trust upon request all registration
statements, prospectuses, statements of additional information and amendments
and supplements thereto which are filed with the SEC on or after the date of
this Agreement, all reports, solicitations for voting instructions, sales
literature or other promotional materials, applications for exemptions, and
requests for no action letters, and all amendments thereto.
5.7 For
purposes of this Agreement, the phrase "sales literature or other promotional
material" includes, but is not limited to, advertisements (such as material
published, or designed for use in a newspaper, magazine, or other periodical,
radio, television, telephone or tape recording, videotape display, signs or
billboards, motion pictures, computerized media, Web site or other public
media), sales literature or other promotional material (i.e. any written
communication distributed or made generally available to customers or the
public, including brochures, circulars, information provided on a Web site,
research reports, market letters, form letters, seminar texts, reprints or
excerpts of any other advertisement, sales literature or other promotional
material, or published article), educational or training materials or other
communications distributed or made generally available to some or all agents or
employees (but not including materials exclusively used internally by licensed
representatives).
ARTICLE
VI. DIVERSIFICATION
6.1 The
Trust and the Adviser represent and warrant that, at all times, they will comply
with Section 817(h) of the Code, the regulations promulgated thereunder, and any
Internal Revenue Service guidance, relating to the diversification requirements
for variable annuity, endowment, or life insurance contracts and any amendments
or other modifications to such statutory, regulatory or administrative
authority. In the event a Fund ceases to so qualify, the Trust and
the Adviser will immediately take all steps necessary (a) to notify Hartford of
such event and (b) to adequately diversify the Fund so as to achieve compliance
within the period afforded by Treasury Regulation 817-5.
ARTICLE
VII. POTENTIAL CONFLICTS
If and during the time that the Trust
engages in activities that require a Mixed and Shared Funding Exemptive Order,
the parties shall comply with the conditions in this Article VII.
7.1 The
Board will monitor the Trust for the existence of any material irreconcilable
conflict (1) between the interests of owners of variable annuity contracts and
variable life insurance policies, and (2) between the interests of owners of
Contracts issued by different participating life insurance companies that invest
in the Trust.
A. The
Board shall promptly inform Hartford if it determines that a material
irreconcilable conflict exists and the implications thereof. A
material irreconcilable 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 Fund are
being managed; (e) a difference in voting instructions given by variable annuity
and variable life insurance Contract owners; or (f) disregard of a Contract
owner's voting instructions.
7.2 Hartford
will report any potential or existing material irreconcilable conflict of which
it is aware to the Board. This includes, but is not limited to, an
obligation by Hartford to inform the Board whenever Contract owner voting
instructions are disregarded. Hartford will be responsible for
assisting the Board in carrying out its responsibilities under any Mixed and
Shared Funding Exemptive Order, or, if the Trust is engaged in mixed funding or
shared funding in reliance on Rule 6e-2, 6e-3(T), or any other regulation under
the 1940 Act, Hartford will be responsible for assisting the Board in carrying
out its responsibilities under such regulation, by providing the Board with
access to all information reasonably necessary for the Board to consider any
issues raised. Hartford shall carry out its responsibility under this
Article 7.2 with a view only to the interests of the Contract
owners.
7.3 If
it is determined by a majority of the Trust’s Board, or a majority of its
Independent Trustees, that a material irreconcilable conflict exists due to
issues relating to the Contracts, Hartford will, at its expense and to the
extent reasonably practicable, take whatever steps it can which are necessary to
remedy or eliminate the material irreconcilable conflict, including, without
limitation, withdrawal of the affected Separate Account’s investment in the
Funds. No charge or penalty will be imposed as a result of such
withdrawal.
7.4 Hartford
and the Adviser, at least annually, will 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 them. All reports
received by the Board of potential or existing conflicts, and all Board action
with regard to determining the existence of a conflict, and determining whether
any proposed action adequately remedies a conflict, shall be properly recorded
in the minutes of the Board or other appropriate records, and such minutes or
other records shall be made available to the SEC upon request.
ARTICLE
VIII. INDEMNIFICATION
8.1 Indemnification
by Hartford
A. Hartford
agrees to indemnify and hold harmless the Distributor, the Adviser, the Trust
and each of its directors, trustees, officers, employees and agents and each
person, if any, who controls the Trust within the meaning of Section 15 of the
1933 Act (collectively, the “Indemnified Parties” and individually, the
“Indemnified Party” for purposes of this Article 8.1) against any and all
losses, claims, damages, liabilities (including amounts paid in settlement with
the written consent of Hartford, which consent shall not be unreasonably
withheld) or expenses (including the reasonable costs of investigating or
defending any alleged loss, claim, damage, liability or expense and reasonable
legal counsel fees incurred in connection therewith) (collectively, “Losses”),
to which the Indemnified Parties may become subject under any statute or
regulation, or at common law or otherwise, insofar as such Losses are related to
the offer, sale or acquisition of Fund shares or the Contracts or to the
operation of the Separate Accounts and:
1. Arise
out of or are based upon any untrue statements or alleged untrue statements of
any material fact contained in a registration statement, prospectus or other
disclosure document for the Contracts or in the Contracts themselves or in sales
literature generated or approved by Hartford on behalf of the Contracts or
Separate Accounts (or any amendment or supplement to any of the foregoing)
(collectively, “Company Documents”), 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 indemnity 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 was accurately derived from information furnished to Hartford by or on
behalf of the Trust for use in Company Documents or otherwise for use in
connection with the offer or sale of the Contracts or Fund shares;
or
2. Arise
out of or result from statements or representations (other than statements or
representations contained in and accurately derived from Fund Documents as
defined in Article 8.2(A)(1) not supplied by Hartford or persons under its
control) or wrongful conduct of Hartford or persons under its control, with
respect to the offer, sale, acquisition or distribution of the Contracts or Fund
shares; or
3. Arise
out of or result from any untrue statement or alleged untrue statement of a
material fact contained in Fund Documents as defined in Article 8.2(A)(1) 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 was made in reliance upon and accurately derived from
information furnished by or on behalf of Hartford; or
4. Arise
out of or result from any failure by Hartford to provide the services or furnish
the materials required under the terms of this Agreement; or
5. Arise
out of or result from any material breach of any representation and/or warranty
made by Hartford in this Agreement or arise out of or result from any other
material breach of this Agreement by Hartford, as limited by and in accordance
with the provisions of Articles 8.1(B) and 8.5 hereof.
B. Hartford
shall not be liable under this indemnification provision with respect to any
Losses 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 Adviser, the Trust or the Distributor, whichever is
applicable.
8.2 Indemnification
by the Distributor
A. The
Distributor agrees to indemnify and hold harmless the Trust, the Adviser and
Hartford and each of their respective trustees, directors, officers, employees
and agents and each person, if any, who controls the Trust, the Adviser or
Hartford, respectively, within the meaning of Section 15 of the 1933 Act
(collectively, the “Indemnified Parties” and individually, an “Indemnified
Party” for purposes of this Article 8.2) against any and all losses, claims,
damages, liabilities (including amounts paid in settlement with written consent
from the Distributor, which consent shall not be unreasonably withheld) or
expenses (including the reasonable costs of investigating or defending any
losses, claims, damages, liabilities or expenses and reasonable legal counsel
fees incurred in connection therewith) (collectively, “Losses”) to which the
Indemnified Parties may become subject under any statute or regulation, at
common law or otherwise, insofar as such Losses are related to the sale or
acquisition of the Fund’s shares or the Contracts and:
1. Arise
out of or are based upon any untrue statement or alleged untrue statement of any
material fact contained in a registration statement, prospectus or sales
literature of the Trust (or any amendment or supplement to any of the foregoing)
(collectively, the “Fund Documents”) 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 indemnity 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 or Trust or
the designee of either by or on behalf of the Indemnified Party for use in Fund
Documents or otherwise for use in connection with the offer or sale of the
Contracts or Fund shares; or
2. Arise
out of or result from statements or representations (other than statements or
representations contained in Company Documents not supplied by the Distributor
or persons under its control) or wrongful conduct of the Distributor or persons
under its control, with respect to the offer, sale or distribution of the
Contracts or Fund shares; or
3. Arise
out of or result from any untrue statement or alleged untrue statement of a
material fact contained in Company Documents, 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
Hartford by or on behalf of the Distributor; or
4. Arise
out of or result from any failure by the Distributor to provide the services and
furnish the materials under the terms of this Agreement; or
5. Arise
out of or result from any material breach of any representation and/or warranty
made by the Distributor in this Agreement or arise out of or result from any
other material breach of this Agreement by the Distributor as limited by and in
accordance with the provisions of Articles 8.2(B) and 8.5 hereof.
B. The
Distributor shall not be liable under this indemnification provision with
respect to any Losses 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 Hartford or the Separate Account, whichever is
applicable.
8.3 Indemnification
by the Trust
A. The
Trust agrees to indemnify and hold harmless Hartford and each of its trustees,
directors, officers, employees and agents and each person, if any, who controls
Hartford within the meaning of Section 15 of the 1933 Act (collectively, the
“Indemnified Parties” and individually, an “Indemnified Party” for purposes of
this Article 8.3) against any and all losses, claims, damages, liabilities
(including amounts paid in settlement with written consent from the Trust, which
consent shall not be unreasonably withheld) or expenses (including the
reasonable costs of investigating or defending any losses, claims, damages,
liabilities or expenses and reasonable legal counsel fees incurred in connection
therewith) (collectively, “Losses”) to which the Indemnified Parties may become
subject under any statute or regulation, at common law or otherwise, insofar as
such Losses are related to the sale or acquisition of the Fund’s shares or the
Contracts and:
1. Arise
out of or are based upon any untrue statement or alleged untrue statement of any
material fact contained in Fund Documents 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 indemnity 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 or Trust or
designee of either by or on behalf of Hartford for use in Fund Documents or
otherwise for use in connection with the sale of the Contracts or Fund shares;
or
2. Arise
out of or result from statements or representations (other than statements or
representations contained in Company Documents not supplied by the Distributor
or persons under its control) or wrongful conduct of the Trust, or persons under
its control, with respect to the sale or distribution of the Contracts or Fund
shares; or
3. Arise
out of or result from any untrue statement or alleged untrue statement of a
material fact contained in Company Documents, 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 by or on
behalf of the Trust; or
4. Arise
out of or result from any failure by the Trust to provide the services and
furnish the materials under the terms of this Agreement; or
5. Arise
out of or result from any material breach of any representation and/or warranty
made by the Trust in this Agreement or arise out of or result from any other
material breach of this Agreement by the Trust, as limited by and in accordance
with the provisions of Articles 8.3(B) and 8.5 hereof.
B. The
Trust shall not be liable under this indemnification provision with respect to
any Losses 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 Hartford or the Separate Accounts, whichever is
applicable.
8.4 Indemnification
by the Adviser
A. The
Adviser agrees to indemnify and hold harmless Hartford, the Trust or the
Distributor and each of their trustees, directors, officers, employees and
agents and each person, if any, who controls Hartford, the Trust and the
Distributor, respectively, within the meaning of Section 15 of the 1933 Act
(collectively, the “Indemnified Parties” and individually, an “Indemnified
Party” for purposes of this Article 8.4) against any and all losses, claims,
damages, liabilities (including amounts paid in settlement with written consent
from the Adviser, which consent shall not be unreasonably withheld) or expenses
(including the reasonable costs of investigating or defending any losses,
claims, damages, liabilities or expenses and reasonable legal counsel fees
incurred in connection therewith) (collectively, “Losses”) to which the
Indemnified Parties may become subject under any statute or regulation, at
common law or otherwise, insofar as such Losses are related to the sale or
acquisition of the Fund's shares or the Contracts and;
1. Arise
out of or are based upon any untrue statement or alleged untrue statement of any
material fact provided by the Adviser and contained in a Fund Document or arise
out of or are based upon the omission or the alleged omission to state therein a
material fact about the Adviser required to be stated therein or necessary to
make the statements therein not misleading, provided that this indemnity 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 or Trust or the designee of either by or on
behalf of Hartford for use in Fund Documents or otherwise for use in connection
with the sale of the Contracts or Fund shares; or
2. Arise
out of or result from statements or representations (other than statements or
representations contained in Company Documents not supplied by the Adviser or
persons under its control) or wrongful conduct of the Adviser or persons under
its control, with respect to the sale or distribution of the Contracts or Fund
shares; or
3. Arise
out of or result from any untrue statement or alleged untrue statement of a
material fact contained in Company Documents, 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 by or on
behalf of the Adviser; or
4. Arise
out of or result from any failure by the Adviser to provide the services and
furnish the materials under the terms of this Agreement; or
5. Arise
out of or result from any material breach of any representation and/or warranty
made by the Adviser in this Agreement or arise out of or result from any other
material breach of this Agreement by the Adviser, as limited by and in
accordance with the provisions of Articles 8.4(B) and 8.5 hereof.
B. The
Adviser shall not be liable under this indemnification provision with respect to
any Losses 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 Hartford or the Separate Accounts, whichever is
applicable.
8.5 Notice
of Indemnification; Retention of Counsel
A. Any
party seeking indemnification (each a “Potential Indemnitee”) shall promptly
notify any party from whom it intends to seek indemnification (each a “Potential
Indemnitor”) of all demands made and/or actions commenced against the Potential
Indemnitee which may require a Potential Indemnitor to provide such
indemnification. A Potential Indemnitor shall not be liable under
this indemnification provision with respect to any claim made against a
Potential Indemnitee unless such Potential Indemnitee shall have notified the
Potential Indemnitor 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 Potential Indemnitee (or after such Potential
Indemnitee shall have received notice of such service on any designated agent),
but failure to notify the Potential Indemnitor of any such claim shall not
relieve the Potential Indemnitor from any liability which it may have to the
Potential Indemnitee against whom such action is brought otherwise than on
account of this indemnification provision.
B. In
case any such action is brought against a Potential Indemnitee, the Potential
Indemnitor shall be entitled to participate, at its own expense, in the defense
of such action. The Potential Indemnitor also shall be entitled to
assume the defense thereof, with counsel satisfactory to the party named in the
action. After notice from the Potential Indemnitor to such party of
the Potential Indemnitor’s election to assume the defense thereof, the Potential
Indemnitee shall bear the fees and expenses of any additional counsel retained
by it, and the Potential Indemnitor 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.
8.6 With
respect to any claim for indemnification made under this Agreement, the parties
each shall give the other 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, and
such other party, at all times, shall have the right to intervene in the defense
of the case.
8.7 If
a party is defending a claim and indemnifying one or more parties to this
Agreement, and: (i) a settlement proposal is made by the claimant, or
(ii) the defending party desires to present a settlement proposal to the
claimant, then the defending party promptly shall notify the other party or
parties to this Agreement being indemnified of such settlement proposal together
with its counsel’s recommendation. If the defending party desires to
enter into the settlement and any of the other parties fails to consent within
five (5) Business Days (unless such period is extended, in writing, by mutual
agreement of the parties hereto), then each such other party withholding
consent, from the time it fails to consent forward, shall defend the claim and
shall further indemnify the defending party and other remaining parties subject
to this Agreement, if any, for all costs associated with the claim which are in
excess of the proposed settlement amount.
Regardless
of which party is defending the claim: (i) if a settlement requires
an admission of liability by the non-defending party or would require the
non-defending party to either take action (other than purely ministerial action)
or refrain from taking action (due to an 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 this Article 8.7 shall not
apply.
8.8 The
parties 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.
ARTICLE
IX. APPLICABLE LAW
9.1 This
Agreement shall be construed and the provisions hereof interpreted under and in
accordance with the laws of the State of Connecticut.
9.2 This
Agreement, its terms and definitions, shall be subject to the provisions of the
1933, 1934 and 1940 Acts, and the rules and regulations and rulings thereunder,
including such exemptions from those statutes, rules and regulations as the SEC
may grant.
ARTICLE
X. TERMINATION
10.1 This
Agreement may be terminated without penalty:
A. By
any party for any reason upon six months’ advance written notice delivered to
all of the other parties, it being understood that no party may give notice
under this provision until one (1) year from the effective date of this
Agreement; or
B. By
Hartford by written notice to the Trust, the Adviser and the Distributor with
respect to any Fund in the event any of the Fund’s shares are not registered,
issued or sold in accordance with applicable state and/or federal law, or such
law precludes the use of such shares as the underlying investment vehicle of the
Contracts issued or to be issued by Hartford; or
C. By
Hartford upon written notice to the Trust with respect to any Fund in the event
that such Fund ceases to qualify as a Regulated Investment Company under
Subchapter M of the Code or under any successor or similar provision;
or
D. By
Hartford upon written notice to the Trust and the Distributor with respect to
any Fund in the event that such Fund fails to meet the diversification
requirements specified in this Agreement; or
E. By
Hartford upon institution of formal proceedings against the Trust, the Adviser
or the Distributor by the NASD, the SEC, or any state securities or insurance
department or any other regulatory body; or
F. By
the Distributor, the Adviser or the Trust upon written notice to Hartford with
respect to any Separate Account in the event that such Separate Account ceases
to be qualified as a segregated asset account under the Connecticut Insurance
Code; or
G. By
the Distributor, the Adviser or the Trust upon written notice with respect to
any Separate Account in the event that effective registration as a unit
investment trust under the 1940 Act for such Separate Account is not maintained;
or
H. By
the Distributor, the Adviser or the Trust in the event that the Contracts cease
to be treated as annuity contracts under the applicable provisions of the Code;
or
I. By
the Distributor, the Adviser or the Trust in the event that effective
registration or exemption from registration under the 1933 Act of the Contracts
is not maintained; or
J. By
the Distributor or the Trust upon institution of formal proceedings against
Hartford or its agent by the NASD, the SEC, or any state securities or insurance
department or any other regulatory body regarding Hartford's duties under this
Agreement or related to the sale of the Contracts issued by Hartford, the
operation of the Separate Accounts, or the purchase of shares of the Funds;
or
K. By
any party to the Agreement upon a determination by a majority of the Board, or a
majority of its Independent Trustees, that a material irreconcilable conflict,
as described in Article VII hereof, exists; or
L. By
any party to the Agreement upon requisite vote of the Contract owners having an
interest in the Separate Accounts (or any subaccounts thereof) to substitute the
shares of another investment company for the corresponding shares of a Fund in
accordance with the terms of the Contracts for which those shares had been
selected or serve as the underlying investment media; or
M. By
either the Adviser or the Distributor in the event of a termination of either of
their contracts with the Trust, but each shall use their best efforts to
substitute themselves under this Agreement with any successor investment adviser
or distributor to the Trust.
10.2 Each
party to this Agreement shall promptly notify the other parties to the Agreement
of the institution against such party of any such formal proceedings as
described in Articles 10.1(E) and (J) hereof. Hartford shall give 60
days prior written notice to the Trust of the date of any proposed vote of
Contract owners to replace the Fund's shares as described in Article 10.1(M)
hereof.
10.3 Effect
of Termination
A. Notwithstanding
any termination of this Agreement, the Trust and the Distributor shall at the
option of Hartford, continue to make available additional shares of the Funds,
for the limited purposes set forth in this Section 10.3(A), pursuant to the
terms and conditions of this Agreement, for all Contracts in effect on the
effective date of termination of this Agreement (the "Existing Contracts")
unless such further sale of Fund shares is proscribed by law, regulation or
applicable regulatory body. Specifically, without limitation, the
owners of the Existing Contracts will be permitted to reinvest dividends in the
Funds, direct allocation and reallocation of investments in the Funds, redeem
investments in the Funds and invest in the Funds through additional purchase
payments.
B. Hartford
agrees not to redeem Fund shares attributable to the Contracts except (i) as
necessary to implement Contract owner initiated or approved transactions, or
(ii) as required by state and/or federal laws or regulations or judicial or
other legal precedent of general application or (iii) as permitted by an order
of the SEC pursuant to Section 26(h) of the 1940 Act. Upon request,
Hartford will promptly furnish to the Trust the opinion of counsel for Hartford
to the effect that any redemption pursuant to clause (ii) above is a legally
required redemption.
C. In
addition to the foregoing, Article VIII Indemnification, Article IX and Article
12.1 shall survive any termination of this Agreement.
10.4 Notwithstanding
the termination of this Agreement, Huntington will continue to pay service fees
in accordance with Article 1.9 so long as net assets of Hartford or a Separate
Account remain in a Fund and Hartford continues to provide services, provided
such continued payment is in accordance with applicable law and
regulation.
ARTICLE
XI. NOTICES
11.1 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
Trust: With
a copy to:
The
Huntington
Funds Xxxxx
Xxxxxxxx, Esq.
c/o The
Huntington National
Bank Xxxxxxxx
& Worcester LLP
00 Xxxxx
Xxxx
Xxxxxx 0000
X Xxxxxx XX
Xxxxxxxx,
Xxxx
00000 Xxxxxxxxxx,
XX 00000
Attn: President
And
Xxxxxx Xxxxxx, Secretary
Xxxx Xxxxx LLP
0000 Xxxxxxx Xxxxxx
00xx
Xxxxx
Xxxxxxxxxx,
XX 00000-0000
If
to the Distributor:
Unified
Financial Securities, Inc.
0000
Xxxxx Xxxxxxxx Xxxxxx, Xxxxx 000
Xxxxxxxxxxxx,
XX 00000
Attn: Broker
Dealer Services
If to the
Adviser: With
a copy to:
Huntington
Asset Advisors,
Inc. Xxxxx
Xxxxxxxx, Esq.
00 Xxxxx
Xxxx
Xxxxxx Xxxxxxxx
& Xxxxxxxxx XXX
Xxxxxxxx,
Xxxx
00000 0000
X Xxxxxx XX
Attn: Chief
Investment
Officer Xxxxxxxxxx,
XX 00000
If to
Hartford: With
a copy to:
Hartford
Life Insurance
Co. Hartford
Life Insurance Co.
000
Xxxxxxxxx
Xxxxxx 000
Xxxxxxxxx Xxxxxx
Xxxxxxxx,
Xxxxxxxxxxx
00000 Xxxxxxxx,
Xxxxxxxxxxx 00000
Attn: Xxxxxx
X.
Xxxxx Attn:
Xxxxxxxxx Xxxxxx, General Counsel
ARTICLE
XII. MISCELLANEOUS
12.1 Subject
to the requirements of legal process and regulatory authority, each party will
treat as confidential the names and addresses of the owners of the Contracts and
all information reasonably identified as confidential in writing by any other
parties and, except as permitted by this Agreement or as required by any
governmental agency, regulator or other authority, shall not without the express
written consent of the affected party disclose, disseminate or utilize such
names and addresses and other confidential information until such time as it may
come into the public domain. Each party further agrees to use and disclose
Personal Information, as defined herein, only to carry out the purposes for
which it was disclosed to them and will not use or disclose Personal Information
if prohibited by applicable law, including, without limitation, statutes and
regulations enacted pursuant to the Xxxxx-Xxxxx-Xxxxxx Act (Public Law
106-102). For purposes of this Agreement, “Personal Information”
means financial and medical information that identifies an individual personally
and is not available to the public, including, but not limited to, credit
history, income, financial benefits, policy or claim information and medical
records. If either party outsources services to a third-party, such third party
will agree in writing to maintain the security and confidentiality of any
information shared with them.
12.2 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.
12.3 This
Agreement may be executed simultaneously in two or more counterparts, each of
which taken together shall constitute one and the same instrument.
12.4 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.
12.5 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 (and other parties) reasonable
access to its books and records in connection with any investigation or inquiry
relating to this Agreement or the transactions contemplated hereby.
12.6 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.
12.7 This
Agreement or any of the rights and obligations hereunder may not be assigned by
any party without the prior written consent of all parties.
IN WITNESS WHEREOF, each of
the parties has caused this Agreement to be executed in its name and on its
behalf by its duly authorized representative as of the date specified below, to
be effective as of April 1, 2009.
HARTFORD LIFE INSURANCE
COMPANY,
on
its behalf and on behalf of each Separate Account named in Schedule A, as
may be amended from time to time
By: /s/ Rob
Arena
Name: Rob
Arena
Its: Executive
Vice President
Date: 5/26/09
|
UNIFIED
FINANCIAL SECURITIES, INC.
By: /s/ Xxxxxxx X.
Xxxxxxxxx
Name: Xxxxxxx
X. Xxxxxxxxx
Its: President
Date: 5/12/09
|
HARTFORD LIFE AND ANNUITY
INSURANCE COMPANY,
on
its behalf and on behalf of each Separate Account named in Schedule A, as
may be amended from time to time
By: /s/ Rob
Arena
Name: Rob
Arena
Its: Executive
Vice President
Date: 5/26/09
|
|
THE HUNTINGTON FUNDS, on
its behalf and on behalf of each Fund named in this Schedule B, as may be
amended from time to time
By: /s/ Xxxx
XxXxxxxx
Name: Xxxx
XxXxxxxx
Its: Vice
President
Date: 5/12/09
|
HUNTINGTON
ASSET ADVISORS, INC.
By: /s/ Xxx
Xxxx
Name: Xxx
Xxxx
Its: Chief
Compliance Officer
Date: 5/14/09
|
SCHEDULE
A,
dated
as of April 1, 2009
SEPARATE
ACCOUNTS AND CONTRACTS
Name
of Separate Account
|
Contract
Funded by Separate Account
|
Hartford
Life Insurance Company Separate Account Two
|
The
Huntington Director Variable Annuity (all series)
Huntington
Director Outlook Variable Annuity (all series)
|
Hartford
Life Insurance Company Separate Account Seven
|
Xxxxxxxxxx
Xxxxxxxx Leaders Variable Annuity (all series)
|
Hartford
Life and Annuity Insurance Company Separate Account Seven
|
Xxxxxxxxxx
Xxxxxxxx Leaders Variable Annuity (all
series)
|
IN WITNESS WHEREOF, each of
the parties has caused this Schedule A to be executed in its name and on its
behalf by its duly authorized representative as of the date specified below, to
be effective as of April 1, 2009.
HARTFORD LIFE INSURANCE
COMPANY,
on
its behalf and on behalf of each Separate Account named in Schedule A, as
may be amended from time to time
By: /s/ Rob
Arena
Name: Rob
Arena
Its: Executive
Vice President
Date: 5/26/09
|
UNIFIED
FINANCIAL SECURITIES, INC.
By: /s/ Xxxxxxx X.
Xxxxxxxxx
Name: Xxxxxxx
X. Xxxxxxxxx
Its: President
Date: 5/12/09
|
HARTFORD LIFE AND ANNUITY
INSURANCE COMPANY,
on
its behalf and on behalf of each Separate Account named in Schedule A, as
may be amended from time to time
By: /s/ Rob
Arena
Name: Rob
Arena
Its: Executive
Vice President
Date: 5/26/09
|
|
THE HUNTINGTON FUNDS, on
its behalf and on behalf of each Fund named in this Schedule B, as may be
amended from time to time
By: /s/ Xxxx
XxXxxxxx
Name: Xxxx
XxXxxxxx
Its: Vice
President
Date: 5/12/09
|
HUNTINGTON
ASSET ADVISORS, INC.
By: /s/ Xxx
Xxxx
Name: Xxx
Xxxx
Its: Chief
Compliance Officer
Date: 5/14/09
|
SCHEDULE
B
dated
as of April 1, 2009
Participating Funds
Huntington
VA Income Equity Fund
Huntington
VA Growth Fund
Huntington
VA Dividend Capture Fund
Huntington
VA Mid Corp America Fund
Huntington
VA New Economy Fund
Huntington
VA Rotating Markets Fund
Huntington
VA Macro 100 Fund
Huntington
VA Situs Fund
Huntington
VA Mortgage Securities Fund
Huntington
VA International Equity Fund
Huntington
VA Real Strategies Fund
|
CUSIP Number
000000000
000000000
000000000
000000000
000000000
000000000
000000000
000000000
000000000
000000000
000000000
|
IN WITNESS WHEREOF, each of
the parties has caused this Schedule B to be executed in its name and on its
behalf by its duly authorized representative as of the date specified below, to
be effective as of April 1, 2009.
HARTFORD LIFE INSURANCE
COMPANY,
on
its behalf and on behalf of each Separate Account named in Schedule A, as
may be amended from time to time
By: /s/ Rob
Arena
Name: Rob
Arena
Its: Executive
Vice President
Date: 5/26/09
|
UNIFIED
FINANCIAL SECURITIES, INC.
By: /s/ Xxxxxxx X.
Xxxxxxxxx
Name: Xxxxxxx
X. Xxxxxxxxx
Its: President
Date: 5/12/09
|
HARTFORD LIFE AND ANNUITY
INSURANCE COMPANY,
on
its behalf and on behalf of each Separate Account named in Schedule A, as
may be amended from time to time
By: /s/ Rob
Arena
Name: Rob
Arena
Its: Executive
Vice President
Date: 5/26/09
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THE HUNTINGTON FUNDS, on
its behalf and on behalf of each Fund named in this Schedule B, as may be
amended from time to time
By: /s/ Xxxx
XxXxxxxx
Name: Xxxx
XxXxxxxx
Its: Vice
President
Date: 5/12/09
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HUNTINGTON
ASSET ADVISORS, INC.
By: /s/ Xxx
Xxxx
Name: Xxx
Xxxx
Its: Chief
Compliance Officer
Date: 5/14/09
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SCHEDULE
C
Subject
to the terms and conditions of this Agreement, Hartford shall be appointed to,
and agrees to act, as a limited agent of Trust for the sole purpose of receiving
instructions from authorized parties as defined by the Contracts for the
purchase and redemption of Fund shares prior to the close of regular trading
each Business Day. A "Business Day” is defined in Article 1.1(B) of
the Agreement. Except as particularly stated in this paragraph,
Hartford shall have no authority to act on behalf of Trust or to incur any cost
or liability on its behalf.
Until
such time as Trust and Hartford are able to utilize the National Securities
Clearing Corporation ("NSCC") Defined Contribution Clearing and Settlement
("DCC&S") Fund/SERV system: Trust will use its best efforts to
provide to Hartford or its designated agent closing net asset value, change in
net asset value, dividend or daily accrual rate information and capital gain
information by 6:30 p.m. Eastern Time each Business Day. Hartford or
its agent shall use this data to calculate unit values. Unit values
shall be used to process the same Business Day’s contract
transactions. Orders derived from, and in amounts equal to,
instructions received by Hartford prior to the Close of Trading on the New York
Stock Exchange on any Business Day ("Day 1") shall be transmitted without
modification (except for netting or aggregating such orders) to Trust by 8:30
a.m. Eastern Time on the next Business Day. Such trades will be
effected at the net asset value of each Fund's shares calculated as of the Close
of Trading on Day 1. Trust will not accept any order made on a conditional basis
or subject to any delay or contingency.
Until
such time as Trust and Hartford are able to utilize the DCC&S Fund/SERV
system, each party shall, as soon as practicable after transmittal of an
instruction or confirmation, verify the other party’s receipt of such
instruction or confirmation, and in the absence of such verification such a
party to whom an instruction or confirmation is sent shall not be liable for any
failure to act in accordance with such instruction or confirmation, and the
sending party may not claim that such an instruction or confirmation was
received by the other. Each party shall notify the other of any
errors, omissions or interruptions in, or delay or unavailability as promptly as
possible.
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a)
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For
those purchase orders not transmitted via the DCC&S Fund/SERV system,
Hartford shall complete payment to Trust or its designated agent in
federal funds no later than 3:00 P.M. on the Business Day following the
day on which the instructions are treated as having been received by Trust
pursuant to this Agreement.
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b)
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For
those redemption orders not transmitted via the DCC&S Fund/SERV
system, Trust or its designated agent shall initiate payment in federal
funds no later than 3:00 P.M. on the Business Day following the day on
which the instructions are treated as having been received by Trust
pursuant to this Agreement.
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At such
time as Trust and Hartford are able to transmit information via the NSCC's
DCC&S Fund/SERV System:
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a)
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Orders
derived from, and in amounts equal to, instructions received by Hartford
prior to the Close of Trading on Day 1 shall be transmitted without
modification (except for netting and aggregation of such orders) via the
NSCC's DCC&S Fund/SERV system to Trust no later than 5:00 a.m. Eastern
Time on the Next Business Day. Such trades will be effected at
the net asset value of each Fund's shares calculated as of the Close of
Trading on Day 1.
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b)
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Trust
and Hartford shall mutually agree there may be instances when orders shall
be transmitted to Trust via facsimile no later than 8:30 a.m. rather than
through the DCC&S Fund/SERV system. In such instances, such
orders shall be transmitted to Trust via facsimile no later than 8:30 a.m.
Eastern Time on the next Business
Day.
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c)
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With
respect to purchase and redemption orders received by Trust on any
Business Day for any Fund, within the time limits set forth in this
Agreement, settlement shall occur consistent with the requirements of
DCC&S Fund/SERV system.
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At such
time as Trust and Hartford are able to transmit information via the DCC&S
Fund/SERV system: Trust or its designated agent shall send to Hartford, via the
DCC&S Fund/SERV system, verification of net purchase or redemption orders or
notification of the rejection of such orders ("Confirmations ") on each Business
Day for which Hartford has transmitted such orders. Such
confirmations shall include the total number of shares of each Fund held by
Hartford following such net purchase or redemption. Trust, or its designated
agent, shall submit in a timely manner, such confirmations to the DCC&S
Fund/SERV system in order for Hartford to receive such confirmations no later
than 11:00 a.m. Eastern Time the next Business Day. Trust or its designated
agent will transmit to Hartford via DCC&S NETWORKING system those Networking
activity files reflecting account activity. In addition, within five
(5) Business Days after the end of each month, Trust or its affiliate will send
Hartford a statement of account which shall confirm all transactions made during
that particular month in the account.
Documents
and Other Materials
Documents
Provided by Hartford
Hartford
agrees to provide Trust, upon written request, any reports indicating the number
of shareholders that hold interests in the Funds and such other information
(including books and records) that Trust may reasonably
request. Hartford agrees to provide Trust, upon written request, such
other information (including books and records) as may be necessary or advisable
to enable it to comply with any law, regulation or order.
Documents
Provided by Trust
Within
five (5) Business Days after the end of each calendar month, Trust, Distributor,
or Adviser shall provide Hartford, or its designee, a monthly statement of
account, which shall confirm all transactions made during that particular
month.